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                                                                   EXHIBIT 10.11

                              EMPLOYMENT AGREEMENT

      This Employment Agreement (the "Agreement"), made and entered into as of
March 31, 2005 (the "Effective Date"), is by and between CHARTER COMMUNICATIONS,
INC, a Delaware corporation ("Corporation"), and MICHAEL J. LOVETT, an
individual resident of Colorado (the "Executive").

                                    RECITALS

      The Corporation desires to employ the Executive as its Executive Vice
President and Chief Operating Officer effective as of the Effective Date, and
the Executive desires to accept such employment effective as of the Effective
Date, on the terms and conditions set forth herein.

                                    AGREEMENT

      The parties, intending to be legally bound, agree as follows:

      Section 1. Employment. The Corporation hereby employs the Executive, and
      the Executive hereby accepts employment, all on the terms and conditions
      herein. This agreement supersedes any previous letter of engagement or
      terms of employment.

      Section 2. Services; Extent of Services.

            (a) Duties and Responsibilities. The Executive is hereby employed as
      the Executive Vice President and Chief Operating Officer of the
      Corporation, the authority, duties and responsibilities of which will be
      as follows: the Executive will (i) manage, review and supervise the
      operations and support functions under his direct control; (ii) report to
      Robert P. May, the Interim Chief Executive Officer of the Corporation,
      until such time that a permanent Chief Executive Officer of the
      Corporation is appointed and following such time that a permanent Chief
      Executive Officer of the Corporation is appointed, report to such Chief
      Executive Officer; (iii) comply with the various policies, procedures and
      codes of conduct of the Corporation in effect from time to time which
      apply to other employees and executive officers.

            (b) Full Business Attention. The Executive will devote his full
      business attention and energies to the business of the Corporation during
      the Term (as defined below) and unless otherwise mutually agreed will
      physically report and will render all the Executive's services
      contemplated hereunder to the Corporation at its offices in the St Louis,
      Missouri area; provided, however, that the foregoing requirement to render
      services in St Louis shall not apply when the Executive is traveling on
      company business.

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            (c) Other Activities. Notwithstanding anything to the contrary
      contained in Section 2(b), the Executive will be permitted to engage in
      the following activities, provided that such activities do not materially
      interfere or conflict with the Executive's duties and responsibilities to
      the Corporation:

                  (i) the Executive may serve on the governing boards of, or
            otherwise participate in, a reasonable number of trade associations
            and charitable organizations whose purposes are not inconsistent
            with the activities and the image of the Corporation;

                  (ii) the Executive may engage in a reasonable amount of
            charitable activities and community affairs; and

                  (iii) subject to the prior approval of the Nominating /
            Corporate Governance Committee of the Board of Directors of the
            Corporation, the Executive may serve on the board of directors of up
            to one business corporations or other for-profit entities, provided
            that they do not compete, directly or indirectly, with the
            Corporation.

      Section 3. Compensation.

            (a) Base Salary. In consideration of the services provided
      hereunder, the Corporation shall pay the Executive during the Term a
      salary at an annual rate of $575,000 per year (the "Base Salary") in
      regular installments in accordance with the Corporation's pay practices
      for executive officers generally. This Base Salary will be reviewed on an
      annual basis and may be adjusted upward at the discretion of the Board.

            (b) Bonus. During the Term, the Executive will be entitled to
      receive cash bonus payments in an amount per year targeted at 80% of the
      amount of the Base Salary in accordance with the senior management bonus
      plan. The target bonus is in line with other senior executives of the
      company and only the CEO position carries a higher percentage. If the
      Executive is terminated for any reason other than Cause, he shall receive
      a pro-rated bonus no later than thirty (30) days following the date of
      termination in accordance with the level of payout for the bonus plan and
      subject to approval by the board. The pro-rated bonus will be calculated
      based upon financial results for the fiscal year in question as of the end
      of the month immediately prior to the month in which employment
      terminated.

            (c) Benefits. During the Term, the Executive will be entitled to the
      following benefits:

                  (i) Employee Benefit Plans. The Executive will be entitled to
            participate in all employee benefit plans of the Corporation
            (including incentive or equity compensation plans) on such terms as
            are offered for

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            the general benefit of other senior executive officers of the
            Corporation, subject to the provisions of such plans as may be in
            effect from time to time. Shares of restricted stock not tied to
            performance will be granted as a "one off' award as a recognition of
            this important promotion.

                  (ii) Vacation; Sick Leave. The Executive will be entitled to
            vacation and sick leave on such terms as are offered for the benefit
            of other senior executives of the Corporation in accordance with and
            upon the terms of Corporation policies.

            (d) Expense Reimbursement. The Corporation shall reimburse the
      Executive, in accordance with the Corporation's policies, for all
      reasonable business expenses incurred by the Executive in connection with
      the performance of the Executive's obligations hereunder.

            (e) Taxes. All payments made by the Corporation under this Agreement
      will be subject to withholding of such amounts as is required pursuant to
      any applicable law or regulation.

            (f) Equity Incentives. The Corporation agrees to provide the
      Executive with equity incentives commensurate with the Executive's
      position and responsibilities with the Corporation as determined by the
      board in its discretion.

            (g) Relocation Expenses. The Corporation shall reimburse the
      Executive for the following expenses (to the extent they are reasonable
      and documented) incurred by the Executive in connection with relocating
      his family to a new primary residence in St Louis Missouri or surrounding
      communities: Expenses will be reimbursed in accordance with and upon the
      terms of the Corporation's relocation policy and in any event no later
      than March 15, 2006. If the Executive's employment is terminated for any
      reason other than Cause within the first 24 months following the Effective
      Date, he will receive reasonable relocation expenses back to the city of
      his choice within the 48 contiguous states in accordance with and upon the
      terms of the Corporation's relocation policy at the time.

            Section 4. Term. The term of this Agreement will commence on the
      Effective Date and will continue for a term of three (3) years following
      the Effective Date (the "Term"), unless earlier terminated pursuant to the
      provisions of Section 5 below. This contract will be reviewed and
      considered for extension at 18 month intervals during Executive's
      employment during the Term.

            The provisions of Sections 8-10 and any other provisions relating to
      their enforcement survive termination of employment and termination of
      this Agreement.

      Section 5. Termination of Employment.

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            (a) Termination by Corporation for Cause. The Executive's employment
      by the Corporation will terminate immediately upon written notice to the
      Executive if the Corporation elects to discharge the Executive for Cause.
      For purposes hereof, "Cause" means:

                  (i) the Executive's act of fraud, misappropriation, or
            embezzlement with respect to the Corporation;

                  (ii) the Executive's indictment for, conviction of, or plea of
            guilt or no contest to, any felony;

                  (iii) the Executive's admission of liability of, or finding of
            liability for, the violation of any "Securities Laws." As used
            herein, the term "Securities Laws" means any federal or state law,
            rule or regulation governing the issuance or exchange of securities,
            including without limitation the Securities Act of 1933, the
            Securities Exchange Act of 1934 and the rules and regulations
            promulgated thereunder; or

                  (iv) a determination by any agency or instrumentality of any
            state or the United States of America, including but not limited to
            the United States Department of Justice, the United States
            Securities and Exchange Commission or any committee of the United
            States Congress, that the Executive's employment impairs or impedes
            the ability of such agency or instrumentality to conduct
            investigations, and/or prosecute proceedings, into the actions or
            in-actions of any current or former employee of the Corporation
            (collectively, the "Investigations");

                  (v) the Executive's failure after reasonable prior written
            notice to comply with any valid and legal directive of the Chief
            Executive Officer or the Board of Directors of the Corporation; or

                  (vi) Other than as provided in 5(a)(i) - (v) above, the
             Executive's material breach of any provision of this Agreement that
             is not remedied within fifteen (15) days of the Executive being
             provided written notice thereof from the Corporation.

      Repeated breaches of a similar nature shall not require additional notices
      as provided Section 5(a)(v) or (vi).

            (b) Termination by Corporation Without Cause. The Corporation may
      terminate the Executive's employment without Cause upon at least thirty
      (30) days prior written notice to the Executive.

            (c) Death or Disability. The Executive's employment by the
      Corporation will immediately terminate upon the Executive's death and, at
      the

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      option of either the Executive or the Corporation, exercisable upon
      written notice to the other party, may terminate upon the Executive's
      Disability. For purposes of this Agreement, "Disability" will occur if (i)
      the Executive becomes eligible for full benefits under a long-term
      disability policy provided by the Corporation, if any, or (ii) the
      Executive has been unable, due to physical or mental illness or
      incapacity, to perform the essential duties of his employment with
      reasonable accommodation for a continuous period of ninety (90) days or an
      aggregate of one-hundred eighty (180) days during any consecutive 12-month
      period.

            (d) Termination by the Executive for Good Reason. The Executive may
      terminate the Executive's employment at any time upon thirty (30) days'
      written notice to the Corporation specifying the basis for the claim of
      Good Reason (if the Corporation fails to cure such event or rectify the
      basis for the claim of Good Reason within such thirty-day period) (any
      such termination referenced in clauses (i)-(v) below, constituting
      termination for "Good Reason"):

                  (i) if the Corporation fails to make the payments or offer the
            benefits required by Section 3 hereof within thirty (30) days after
            any such payments or benefits are due;

                  (ii) if the Executive's duties, authority or responsibilities
            as Chief Operating Officer are substantially diminished, regardless
            of whether such diminution of duties is accompanied by a change in
            the Executive's title;

                  (iii) if the Corporation requires the Executive to change the
            Executive's principal place of business from the greater
            metropolitan St. Louis, Missouri area without the Executive's
            consent (it being understood that required travel from such location
            shall not be a change in such principal place of business);

                  (iv) except as otherwise set forth in clauses (i), (ii) and
            (iii) above, if the Corporation materially breaches any of its other
            duties hereunder.

            (e) Termination by the Executive without Good Reason. The Executive
      may terminate the Executive's employment without Good Reason upon at least
      thirty (30) days prior written notice to the Corporation.

            (f) Change in Control. The Executive may terminate the Executive's
      employment within the sixty (60) day period immediately following a
      "Change in Control." For purposes of this Agreement, a "Change in Control"
      will be deemed to have taken place if, whether in a single transaction or
      a series of transactions:

                  (i) any person or entity, including a "group" as defined in
            Section 13(d)(3) of the Securities Exchange Act of 1934, as amended,

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            other than the Corporation, or any employee benefit plan of the
            Corporation or any of its subsidiaries, becomes the beneficial owner
            of Corporation securities having 50% or more of the combined voting
            power of the then outstanding securities of the Corporation that may
            be cast for the election of directors of the Corporation (other than
            as a result of the issuance of securities initiated by the
            Corporation in the ordinary course of business). This does not
            include, and a Change in Control does not result from, any
            transaction or series of transactions where any individual or group
            who as of the Effective Date own in the aggregate more than 30% of
            the Corporation's outstanding capital stock (collectively, and
            individually, a "Controlling Shareholder") acquire additional
            shares, or any situation where following the transaction or series
            of transactions in question the Controlling Shareholder retains
            effective voting control of the Corporation;

                  (ii) as the result of, or in connection with, any cash tender
            or exchange offer, merger or other business combination, or any
            combination of the foregoing transactions, the holders of all the
            Corporation's securities entitled to vote generally in the election
            of directors of the Corporation immediately prior to such
            transaction constitute, following such transaction, less than a
            majority of the combined voting power of the then-outstanding
            securities of the surviving entity (or in the event each entity
            survives, the surviving entity that is the parent entity) entitled
            to vote generally in the election of the directors of such surviving
            entity (or in the event each entity survives, the surviving entity
            that is the parent entity) after such transactions; or

                  (iii) the Corporation sells, transfers or leases all or
            substantially all of the assets of the Corporation and its
            subsidiaries, collectively. This does not include, and a Change in
            Control does not result from, a sale, lease or transfer to a
            Controlling Shareholder or to an entity majority-owned, controlled
            by or under common control with a Controlling Shareholder.

      Section 6. Effect of Termination.

            (a) Termination by the Corporation for Cause; Termination by the
      Executive Without Good Reason. Upon termination of Executive's employment
      (i) by the Corporation for Cause pursuant to Section 5(a) above, or (ii)
      by the Executive without Good Reason pursuant to Section 5(e) above, the
      Executive only will be entitled to receive (i) base salary and bonus
      payments, payments in respect of accrued but unpaid vacation and
      reimbursement for business expenses, in each case due, accrued or payable
      as of the date of such termination, and (ii) such vested stock options and
      other benefits as the Executive may be entitled to

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      receive under any stock option or other employee benefit plan, but will
      not be entitled to receive the Severance Payment (as defined in Section
      6(c) below).

            (b) Other Termination. Upon termination of the Executive's
      employment (i) by the Corporation without Cause pursuant to Section 5(b)
      above (including termination without Cause following a Change in Control),
      (ii) by the Corporation or the Executive as the result of the death or
      Disability of the Executive pursuant to Section 5(c) above, (iii) by the
      Executive within the sixty (60) day period immediately following a Change
      in Control pursuant to Section 5 (f), or (iv) by the Executive for Good
      Reason pursuant to Section 5(d) above, the Executive only will be entitled
      to receive (1) base salary and any outstanding bonus payments due in
      accordance with Section 3 (b) and payments in respect of accrued but
      unpaid vacation and reimbursement for business expenses, in each case due,
      accrued or payable as of the date of such termination), (2) such vested
      stock options and other benefits as Executive may be entitled to receive
      under any equity incentive plan or any other stock option or other
      employee benefit plan, and (3) the Severance Payment (as determined
      pursuant to Section 6(c) below and subject to the conditions spelled out
      in this Agreement). Fifty percent (50%) of the Severance Payment will be
      payable within fifteen (15) days after termination of employment and
      satisfaction of all conditions to payment, and the balance of the
      Severance Payment will be payable in equal instalments on the
      Corporation's regular paydays over the balance of the Term. [Note: per the
      terms of the option plans, vesting of options during the severance period
      is dependent upon the employee signing a release.]

            (c) Severance Payment. For purposes of this Agreement, "Severance
      Payment" means:

                  (i) in the event of any termination by the Corporation without
            Cause pursuant to Section 5(b) above (including termination without
            Cause following a Change in Control), an amount equal to the
            Executive's Base Salary for the number of months remaining in the
            Term at the date of termination;

                  (ii) in the event of any termination by the Executive for Good
            Reason pursuant to Section 5(d), or in the event of a termination by
            Executive within sixty (60) days following a Change in Control, an
            amount equal to the Executive's Base Salary for the number of months
            remaining in the Term at the date of termination;

                  (iii) in the event of any termination by the Corporation or
            the Executive as the result of the death or Disability of the
            Executive pursuant to Section 5(c) above, an amount equal to the
            Executive's Base Salary for a period of three (3) full months (which
            payment shall be in addition to and not in lieu of any benefits
            payable to the Executive under any group

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            long term or short term disability insurance plan of the Corporation
            in which the Executive participates).

            Notwithstanding any provision of this Agreement to the contrary, the
      Severance Payment (or any other payment called for by this Agreement to be
      paid following termination of employment) will not be made within the
      period of time following termination of employment that would result in
      the application of Section 409A of the Internal Revenue Code, and the
      Severance Payment is subject to forfeiture for violations of Sections 8 or
      9 of this Agreement (in addition to any other remedies available to the
      Corporation for a breach of such provisions). The amount of Severance
      Payment to be forfeited shall be prorated based upon the date of the
      violation.

      Section 7. Miscellaneous.

            (a) Notices. All notices, consents, waivers, and other
      communications under this Agreement must be in writing and will be deemed
      to have been duly given when (i) delivered by hand (with written
      confirmation of receipt), (ii) sent by facsimile with confirmation of
      transmission by the transmitting equipment, (iii) received by the
      addressee, if sent by certified mail, return receipt requested, or (iv)
      received by the addressee, if sent by a nationally recognized overnight
      delivery service, return receipt requested, in each case to the
      appropriate addresses, or facsimile numbers set forth below (or to such
      other addresses, or facsimile numbers as a party may designate by notice
      to the other parties):

      the Executive:                Michael J. Lovett
                                    964 Greenridge Lane
                                    Castle Rock, Colorado 80104

            the Corporation:        Charter Communications
                                    Charter Plaza
                                    112405 Powerscourt Drive
                                    St Louis, MO 63131-3674
                                    Attention: Chief Executive Officer

            with a copy to:         Charter Communications
                                    Charter Plaza
                                    112405 Powerscourt Drive
                                    St Louis, MO 63131-3674

                                    Attention: Lynne Ramsey
                                    Senior Vice    President Human Resources
                                    Fax:  (205) 969-4732

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            (b) Power and Authority. Each party warrants and represents that it
      has full power and authority to enter into and perform this Agreement, and
      the person signing this Agreement on behalf of such party has been
      properly authorized and empowered to enter into this Agreement.

            (c) Remedies. The rights and remedies of the parties to this
      Agreement are cumulative and not alternative.

            (d) Waiver. No failure to exercise, and no delay in exercising, on
      the part of either party, any privilege, any power or any right hereunder
      will operate as a waiver thereof, nor will any single or partial exercise
      of any privilege, right or power hereunder preclude further exercise of
      any other privilege, right or power hereunder.

            (e) Entire Agreement and Modification. This Agreement constitutes
      the entire agreement between the parties with respect to the subject
      matter of this Agreement and supersedes all prior agreements, whether
      written or oral, between the parties with respect to its subject matter
      and constitutes a complete and exclusive statement of the terms of the
      agreement between the parties with respect to its subject matter. This
      Agreement may not be amended or waived except by a written agreement
      signed by the party to be charged with the amendment.

            (f) Assignment. This Agreement may not be assigned by any party
      hereto without the prior written consent of the non-assigning party;
      provided, however, that the Corporation may assign this Agreement without
      the consent of the Executive in connection with any transaction which
      constitutes a Change of Control. Subject to the foregoing, this Agreement
      will be binding upon and shall inure to the benefit of (i) in the case of
      the Executive, his heirs, executors, administrators and legal
      representatives, and (ii) in the case of the Corporation, its permitted
      successors and assigns.

            (g) Severability. If any provision of this Agreement is held invalid
      or unenforceable by any court of competent jurisdiction, the other
      provisions of this Agreement will remain in full force and effect. The
      parties further agree that if any provision contained herein is, to any
      extent, held invalid or unenforceable in any respect under the laws
      governing this Agreement, they shall take any actions necessary to render
      the remaining provisions of this Agreement valid and enforceable to the
      fullest extent permitted by law and, to the extent necessary, shall amend
      or otherwise modify this Agreement to replace any provision contained
      herein that is held invalid or unenforceable with a valid and enforceable
      provision giving effect to the intent of the parties.

            (h) Section Headings, Construction. The headings of Sections in this
      Agreement are provided for convenience only and will not affect its
      construction or interpretation. All references to "Section" or "Sections"
      refer to the

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      corresponding Section or Sections of this Agreement unless otherwise
      specified. All words used in this Agreement will be construed to be of
      such gender or number as the circumstances require. Unless otherwise
      expressly provided, the word "including" does not limit the preceding
      words or terms. The language used in the Agreement will be construed, in
      all cases, according to its fair meaning, and not for or against any party
      hereto. The parties acknowledge that each party has reviewed this
      Agreement and that rules of construction to the effect that any
      ambiguities are to be resolved against the drafting party will not be
      available in the interpretation of this Agreement.

            (i) Governing Law. This Agreement will be governed by and construed
      in accordance with the laws of the State of Missouri, without regard to
      the conflict of law provisions thereof. It is deemed to be entered into
      and accepted in the State of Missouri.

            (j) Counterparts. This Agreement may be executed in one or more
      counterparts, each of which will be deemed to be an original copy of this
      Agreement and all of which, when taken together, will be deemed to
      constitute one and the same agreement.

            (k) Attorneys' Fees. The parties agree that in the event it becomes
      necessary to seek judicial remedies for the breach or threatened breach of
      this Agreement, the prevailing party will be entitled, in addition to all
      other remedies, to recover from the non-prevailing party all costs of such
      judicial action, including but not limited to, costs of investigation and
      defense and reasonable attorneys' fees and expenses, and also including
      all such expenses related to any appeal.

            (l) Further Assurances. Each party hereto shall perform such further
      acts and execute and deliver such further documents as may be reasonably
      necessary to carry out the provisions of this Agreement.

            (m) No Third Party Beneficiary. This Agreement shall not confer any
      rights or remedies upon any person or entity other than the parties hereto
      and their respective successors and assigns.

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      Section 8. Non-Competition.

            (a) The Executive acknowledges and recognizes the highly-competitive
      nature of the business conducted by the Corporation and its subsidiaries
      and affiliates and accordingly agrees that, in consideration of this
      Agreement and the premises contained herein, he shall not, for his own
      benefit or for the benefit of any other person or entity other than the
      Corporation, during the period commencing on the Effective Date hereof and
      terminating on the second anniversary of the expiration or termination of
      the Term hereof (or termination of employment, if later than the
      expiration of the Term) for any reason whatsoever:

                  (i) contact, solicit or service any person or entity that was
            a customer or prospective customer of the Corporation or any of its
            subsidiaries or affiliates at any time during the Term hereof (or
            the termination of the Executive's employment, if later) (a
            prospective customer being one to which the Corporation had made a
            written financial proposal within twelve (12) months prior to the
            time of the termination of the Term); or directly solicit or
            encourage any customer or subscriber of the Corporation to purchase
            any service or product of a type offered by or competitive with any
            product or service provided by the Corporation, or to reduce the
            amount or level of business purchased by such customer from the
            Corporation; or take away or procure for the benefit of any
            competitor of the Corporation, any business of a type provided by or
            competitive with a product or service offered by the Corporation; or

                  (ii) solicit or recruit for employment, or as a director, any
            person or persons who are employed by the Corporation or who were at
            any time (within a period of six (6) months immediately prior to the
            date of the termination of the Term) employed by the Corporation,
            otherwise interfere with the relationship between such persons and
            the Corporation; nor will the Executive assist anyone else in
            recruiting any such employee to work for another company or business
            or discuss with any such person his or her leaving the employ of the
            Corporation or engaging in a business activity in competition with
            the Corporation.

                  (iii) perform any work as an employee, consultant, contractor,
            or in any other capacity with, directly or indirectly own any
            interest in, or directly or indirectly provide any services or
            advice to Cequel III (or any of its affiliates, or any entity
            invested in or owned or controlled by Cequel III or any of its
            principals, excluding publicly traded corporations in which such
            person(s) or entities own or control less than a 5% interest), or
            any company or business in which Cequel III or any of Cequel III's
            principals own an interest (other than a publicly traded corporation
            in which such person(s) and entities own or control less than a 5%
            interest). It is understood that the principals of Cequel III are
            Jerry Kent and Howard Wood.

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            (b) The Executive understands that the foregoing restrictions may
      limit his ability to earn a similar amount of money in a business similar
      to the business of the Corporation or its subsidiaries or affiliates, but
      he nevertheless believes that he has received and will receive sufficient
      consideration and other benefits as an employee of the Corporation and as
      otherwise provided hereunder to clearly justify such restrictions which,
      in any event (given his education, skills and ability), the Executive does
      not believe would prevent him from earning a living.

            (c) It is agreed that the Executive's services hereunder are
      special, unique, unusual and extraordinary giving them peculiar value, the
      loss of which cannot be reasonably or adequately compensated for by
      damages, and in the event of the Executive's breach of this Section, the
      Corporation shall be entitled to equitable relief by way of injunction or
      otherwise. If the period of time or area herein specified should be
      adjudged unreasonable in any court proceeding, then the period of time
      shall be reduced by such number of months or the area shall be reduced by
      elimination of such portion thereof as deemed unreasonable, so that this
      covenant may be enforced during such lesser period of time and in such
      lesser areas and scope as will grant the Corporation the maximum
      restriction on the Executive's activities permitted by applicable law in
      such circumstances.

      Section 9. Confidential Information.

            (a) The Executive acknowledges that during the Term he will have
      access to and may obtain, develop, or learn of Confidential Information
      (as defined below).

            (b) The Executive agrees that he shall hold such Confidential
      Information in strictest confidence and that the Executive shall not at
      any time, during or after the Term, in any manner, either directly or
      indirectly, use (for his own benefit or otherwise), divulge, disclose or
      communicate to any unauthorized person or entity in any manner whatsoever
      any Confidential Information.

            (c) Under this Agreement, the term "Confidential Information" shall
      include, but not be limited to, any of the following information relating
      to the Corporation or its affiliates learned by the Executive during the
      Term or as a result of his employment with the Corporation:

                  (i) information regarding the Corporation's business
            proposals, manner of the Corporation's operations, and methods of
            selling or pricing any products or services;

                  (ii) the identity of persons or entities actually conducting
            or considering conducting business with the Corporation, and any

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            information in any form relating to such persons or entities and
            their relationship or dealings with the Corporation or its
            affiliates;

                  (iii) any trade secret or confidential information of or
            concerning any business operation or business relationship;

                  (iv) computer databases, software programs and information
            relating to the nature of the hardware or software and how said
            hardware or software are used in combination or alone;

                  (v) information concerning Corporation personnel, confidential
            financial information, customer or customer prospect information,
            information concerning subscribers, subscriber and customer lists
            and data, methods and formulas for estimating costs and setting
            prices, engineering design standards, testing procedures, research
            results (such as marketing surveys, programming trials or product
            trials), cost data (such as billing, equipment and programming cost
            projection models), compensation information and models, business or
            marketing plans or strategies, deal or business terms, budgets,
            vendor names, programming operations, product names, information on
            proposed acquisitions or dispositions, actual performance compared
            to budgeted performance, long-range plans, results of internal
            analyses, computer programs and programming information, techniques
            and designs, and trade secrets; and

                  (vi) any other trade secret or information of a confidential
            or proprietary nature.

            (d) During the Term, the Executive shall use, divulge, disclose or
      communicate Confidential Information only in the scope of his employment
      with the Corporation and only as expressly directed or permitted by the
      Corporation. The Executive shall not, at any time following the expiration
      or termination of this Agreement for any reason whatsoever, use, divulge,
      disclose or communicate for any purpose any Confidential Information. The
      Executive shall not make or use any notes or memoranda relating to any
      Confidential Information except for the benefit of the Corporation, and
      will, at the Corporation's request, return each original and every copy of
      any and all notes, memoranda, correspondence, diagrams or other records,
      in written or other form, that he may at any time have within his
      possession or control that contain any Confidential Information.

            (e) Except as provided for herein below, the Executive agrees that
      he will treat the terms of this Agreement as confidential, and shall not
      directly or indirectly disclose them in any manner except: (i) as mutually
      agreed upon in writing by the parties to this Agreement; (ii) in legal
      documents filed with the court or any arbitrator in any action to enforce
      the terms of this Agreement; (iii) pursuant to a valid order or
      regulation; (iv) as otherwise required by law or

                                    13 of 16
<PAGE>

      regulation; or (v) to his attorney, financial advisors, accountant, and/or
      spouse, provided that prior to any such disclosure, that individual must
      agree to treat as confidential all information disclosed.

            (f) It is agreed that in the event of the Executive's breach of this
      Section, the Corporation shall be entitled to equitable relief by way of
      injunction or otherwise.

            (g) Notwithstanding the foregoing, Confidential Information shall
      not include information which has come within the public domain through no
      fault of or action by the Executive or which has become rightfully
      available to the Executive on a non-confidential basis from any third
      party, the disclosure of which to the Executive does not violate any
      contractual or legal obligation such third party has to the Corporation or
      its affiliates with respect to such Confidential Information.

      Section 10. Proprietary Developments.

            (a) Any and all inventions, products, discoveries, improvements,
      processes, methods, computer software programs, models, techniques, or
      formulae (collectively, hereinafter referred to as "Developments"), made,
      developed, or created by the Executive (alone or in conjunction with
      others, during regular work hours or otherwise) during the Executive's
      employment, which may be directly or indirectly useful in, or relate to,
      the business conducted or to be conducted by the Corporation will be
      promptly disclosed by the Executive to the Corporation and shall be the
      Corporation's exclusive property. The term "Developments" shall not be
      deemed to include inventions, products, discoveries, improvements,
      processes, methods, computer software programs, models, techniques, or
      formulae which were in the possession of the Executive prior to the Term.
      The Executive hereby transfers and assigns to the Corporation all
      proprietary rights which the Executive may have or acquire in any
      Developments and the Executive waives any other special right which the
      Executive may have or accrue therein. The Executive agrees to execute any
      documents and to take any actions that may be required, in the reasonable
      determination of the Corporation's counsel, to effect and confirm such
      assignment, transfer and waiver.

            (b) The Executive will execute any documents necessary or advisable,
      in the reasonable determination of the Corporation's counsel, to direct
      the issuance of patents, trademarks, or copyrights to the Corporation with
      respect to such Developments as are to be the Corporation's exclusive
      property or to vest in the Corporation title to such Developments;
      provided, however, that the expense of securing any patent, trademark or
      copyright shall be borne by the Corporation.

            (c) The parties agree that Developments shall constitute
      Confidential Information.

                                    14 of 16
<PAGE>

                  [remainder of page intentionally left blank]

                                    15 of 16
<PAGE>

                    [signature page of Employment Agreement]

      IN WITNESS WHEREOF, the undersigned parties have caused this Agreement to
be executed by themselves or by their duly authorized representatives as of the
day and date first written above.

                                          THE CORPORATION:
                                          CHARTER COMMUNICATIONS

                                          By:   /s/ Robert P. May
                                                ------------------------------
                                          Name: Robert P. May
                                                -------------
                                          Its:  Interim Chief Executive Officer
                                                -------------------------------

                                          THE EXECUTIVE:

                                          /S/ MICHAEL J. LOVETT
                                          --------------------------------------
                                          MICHAEL J. LOVETT<PAGE>

                                 EXHIBIT 10(27)

                           CNA SURETY CORPORATION 2005

                           DEFERRED COMPENSATION PLAN

<PAGE>

                           CNA SURETY CORPORATION 2005
                           DEFERRED COMPENSATION PLAN

                                   ARTICLE I.
                                  INTRODUCTION

      1.1.  The Plan. CNA Surety Corporation hereby establishes the CNA Surety
Corporation 2005 Deferred Compensation Plan (the "Plan"), effective January 1,
2005 to replace the CNA Surety Corporation Deferred Compensation Plan
established effective April 1, 2000 (the "Prior Plan") and to apply with respect
to amounts deferred after December 31, 2004. The Prior Plan was amended in
response to the enactment of Section 409A of the Internal Revenue Code of 1986,
as amended (the "Code") to suspend deferrals into that plan for years after
2004, including Performance Contributions for 2004, which will be deferred under
this Plan and not under the Prior Plan. The Performance Contributions for 2004
are subject to the requirements of Code Section 409A because the Company had not
incurred any legally binding obligation prior to January 1, 2005 to credit such
contributions to Participants' Accounts.

      1.2.  Purposes. The purpose of the Plan is to permit designated employees
of the Company and participating affiliates to accumulate additional retirement
income through a nonqualified deferred compensation plan that enables them to
defer compensation to which they will become entitled in the future. The Company
intends to establish and maintain the Plan as an unfunded, nonqualified deferred
compensation plan for a select group of management or highly compensated
employees, and intends that the Plan constitute a "top-hat" plan within the
meaning of Section 201(2) of ERISA.

      1.3.  Compliance with Section 409A. The Company intends for the Plan to
comply with the requirements of Section 409A of the Code and regulations,
rulings and other guidance issued thereunder (collectively, "Section 409A"), and
shall be interpreted and administered accordingly. Notwithstanding any other
provision of this Plan, no acceleration of payment of Accounts that is not
permitted by Section 409A shall be permitted, and no action, amendment or
termination of the Plan shall be effective to the extent that it would cause the
Plan to violate requirements of Section 409A.

                                   ARTICLE II.
                                   DEFINITIONS

      2.1.  "Account" means an account established on the books of the Employer
for the purpose of recording amounts credited on behalf of a Participant under
the Plan.

      2.2.  "Administrator" means Western Surety Company or such other person,
entity or committee appointed by the Company's president to administer the Plan.

      2.3.  "Aggregate Deferrals" for a Plan Year means the sum of a
Participant's Elective Contributions under this Plan and the Participant's
elective salary deferral contributions under the 401(k) Plan for such Plan Year.

<PAGE>

      2.4.  "Basic Contribution" means the amount credited to a Participant's
Account by the Employer pursuant to Section 5.4 of the Plan.

      2.5.  "Beneficiary" means the person or persons designated by a
Participant or otherwise entitled to receive any undistributed amount credited
to the Participant's Account upon the death of the Participant.

      2.6.  "Code" means the Internal Revenue Code of 1986, as amended.

      2.7.  "Company" means CNA Surety Corporation, a corporation duly organized
under the laws of the State of Delaware.

      2.8.  "Compensation" means (a) for purposes of Elective Contributions and
Matching Contributions, "Compensation" as that term is defined in the 401(k)
Plan for purposes of elective salary deferral contributions and employer
matching contributions, and (b) for purposes of Basic Contributions and
Performance Contributions "Compensation" as that term is defined in the 401(k)
Plan for purposes of determining the amount of employer basic contributions and
employer performance contributions; provided however, Compensation for purposes
of this Plan shall not be limited by Code Section 401(a)(17) and shall include a
Participant's Elective Contributions under this Plan.

      2.9.  "Deferral Agreement" means the written agreement between a
Participant and the Employer whereby the Participant elects to defer a portion
of the Participant's Compensation pursuant to the terms of the Plan.

      2.10. "Effective Date" means January 1, 2005; provided, however, that
solely for purposes of Performance Contributions credited to Participants'
Accounts pursuant to Section 5.3, the Effective Date shall be January 1, 2004.

      2.11. "Elective Contribution" means the amount credited to a Participant's
Account pursuant to a Deferral Agreement.

      2.12. "Eligible Employee" means any employee employed on or after the
Effective Date by the Employer and designated by the Employer's board of
directors as eligible for participation in the Plan. An employee's designation
as an "Eligible Employee" may be revoked by the Employer's board of directors
effective as of the first day of the next following Plan Year.

      2.13. "Employer" means the Company and any Related Company that adopts the
Plan with the Company's consent as provided in Section 8.1.

      2.14. "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended.

      2.15. "401(k) Plan" means the CNA Surety Corporation 401(k) Plan, as
amended from time to time.

      2.16. "Hour of Service" means "Hour of Service" as that term is defined in
the 401(k) Plan.

                                      -2-
<PAGE>

      2.17. "Investment Funds" means the investment funds designated by the
Company which, when selected by a Participant, shall be used to measure the
investment experience credited to the Participant's Account.

      2.18. "Matching Contribution" means the amount credited to a Participant's
Account by the Employer pursuant to Section 5.2 of the Plan.

      2.19. "Participant" means an Eligible Employee who satisfies the
requirements of Section 2.1 of the Plan.

      2.20. "Performance Contribution" means the amount credited to a
Participant's Account by the Employer pursuant to Section 5.3 of the Plan.

      2.21. "Plan" means the CNA Surety Corporation 2005 Deferred Compensation
Plan, as amended from time to time.

      2.22. "Plan Year" means the calendar year.

      2.23. "Related Company" means any corporation or business organization
which is a member of a controlled group of corporations which includes the
Company (as determined under Code Section 414(b)); a corporation or business
organization which is under common control with the Company (as determined under
Code Section 414(c)); any corporation or business organization which is a member
of an affiliated service group that includes the Company (as determined under
Code Section 414(m); and any other entity required to be aggregated with the
Company under Treasury regulations to be issued under Code Section 414(o).

      2.24. "Termination of Employment" means a Participant's separation from
service of the Employer by reason of resignation, retirement, disability,
discharge or death. The transfer of a Participant from employment by an Employer
or a Related Company to employment by another Employer or Related Company shall
not constitute a Termination of Employment.

                                  ARTICLE III.
                                  PARTICIPATION

      3.1.  Commencement of Participation.

            (a) Each employee who is an Eligible Employee becomes a Participant
on the later of the Effective Date or the date such employee becomes an Eligible
Employee.

            (b) Solely for purposes of Performance Contributions credited
pursuant to Section 5.3, an employee who was a participant under the Prior Plan
as of January 1, 2004 will become a Participant effective January 1, 2004.

      3.2.  Resumption of Participation Following Reemployment. If a Participant
ceases to be an Eligible Employee by reason of a Termination of Employment and
thereafter returns to the employ of the Employer and is again designated as an
Eligible Employee, such individual shall become a Participant on the January 1
next following the date on which such employee becomes an Eligible Employee;
provided such Eligible Employee shall have returned a Deferral Agreement to the
Administrator prior to such January 1.

                                      -3-
<PAGE>

      3.3.  Cessation or Resumption of Participation Following a Change in
Status.

            (a) If a Participant continues in the employ of the Employer but
ceases to be an Eligible Employee, such individual shall not be entitled to make
Elective Contributions or receive an allocation of Matching Contributions, Basic
Contributions or Performance Contributions with respect to Compensation for the
period of time during which the individual is not an Eligible Employee.

            (b) If a Participant continues in the employ of the Employer as an
Eligible Employee but elects to discontinue Elective Contributions for any
period beginning on the January 1 next following such election, the individual
shall not be entitled to make Elective Contributions or receive an allocation of
Matching Contributions with respect to Compensation for the Plan Year beginning
on such January 1, but the individual shall be entitled to receive Basic
Contributions and Performance Contributions during such Plan Year in accordance
with the terms of the Plan.

            (c) Subject to the foregoing provisions of this Section 3.3, an
individual shall continue to be a Participant in the Plan until the entire
vested balance of the Participant's Account has been distributed.

                                  ARTICLE IV.
                              PARTICIPANT ACCOUNTS

      4.1.  Establishment of Accounts. The Employer shall maintain an Account
for each Participant employed by such Employer for the purpose of recording the
current value of Elective Contributions, Matching Contributions, Basic
Contributions and Performance Contributions, and any investment experience
credited thereto. All Accounts shall be maintained in United States currency on
the books of the applicable Employer as an Employer liability; provided, the
Employer shall be under no obligation to segregate any assets to provide for
such liabilities. Each Employer's obligation under this Plan shall be an
unfunded and unsecured promise to pay. Nothing contained in this Plan shall be
deemed to create a trust of any kind for the benefit of the Participants or
create any fiduciary relationship between the Employers and the Participants or
their Beneficiaries. To the extent that any person acquires a right to receive
benefits under this Plan, such rights shall be no greater than the right of any
unsecured general creditor of the applicable Employer.

      4.2.  Valuation of Accounts. The value of each Participant's Account shall
equal the sum of (a) the Elective Contributions credited to the Participant's
Account, (b) the Matching Contributions credited to the Participant's Account,
(c) the Performance Contributions credited to the Participant's Account, (d) the
Basic Contributions credited to the Participant's Account, and (e) the
investment experience credited to the Participant's Account. The value of a
Participant's Account shall be further reduced by any distributions from the
Account. The Administrator shall furnish Participants with a statement of their
Accounts at least once per Plan Year.

                                      -4-
<PAGE>

                                   ARTICLE V.
                                  CONTRIBUTIONS

      5.1.  Elective Contributions.

            (a) Elective Contributions shall be made pursuant to a Participant's
Deferral Agreement. Except as provided in (b) or (c) below, a Participant's
Deferral Agreement for any Plan Year must be executed before the first day of
the Plan Year. Once executed, a Deferral Agreement shall be effective to defer
Compensation relating to all services performed by the Participant for the Plan
Year for which it is executed, and shall remain in effect for future Plan Years
until a subsequent Deferral Agreement is executed. A Participant's subsequent
Deferral Agreement shall be effective as of the first day of the Plan Year next
following the date it is returned to the Administrator.

            (b) If an employee of the Employer (i) first commences employment
with the Company or any Related Company after March 11, 2005 and (ii) is
designated an Eligible Employee as of such employment commencement date, such
employee shall be eligible to enter into a Deferral Agreement for the Plan Year
in which the employee becomes a Participant, provided however, that the
Participant returns a Deferral Agreement to the Administrator within thirty (30)
days of his or her employment commencement date and the Deferral Agreement will
apply solely to Compensation for services performed after the Deferral Agreement
is returned to the Administrator.

            (c) Notwithstanding the foregoing, each Participant who is an
Eligible Employee on March 11, 2005 shall be permitted to execute a Deferral
Agreement at any time on or before March 11, 2005; provided, however, that such
Deferral Agreement shall apply solely to Compensation for services performed
after March 14, 2005.

            (d) A Deferral Agreement shall be deemed to have been revoked if the
Participant who executed it ceases to be eligible to participate in the Plan.

            (e) The Employer shall reduce the Compensation of each Participant
by the Elective Contribution specified in the Participant's Deferral Agreement
and credit such Elective Contribution to the Participant's Account. The amount
of Elective Contributions specified in a Participant's Deferral Agreement may
not be less than 1% of the Participant's Compensation nor more than 20% of the
Participant's Compensation (in whole percentages).

            (f) A Participant shall be fully vested in the Elective
Contributions and investment experience thereon credited to his or her Account
at all times.

      5.2.  Matching Contributions.

            (a) For each Plan Year, the Employers shall credit a Matching
Contribution to the Account of each Participant who has a Deferral Agreement in
effect for such Plan Year. The amount of the Matching Contribution shall equal:

                                      -5-
<PAGE>

                  (i)   the sum of:

                        (1)   one hundred percent (100%) of the sum of the
                              Participant's Aggregate Deferrals for such Plan
                              Year that do not exceed three percent (3%) of the
                              Participant's Compensation for such Plan Year,
                              plus

                        (2)   fifty percent (50%) of the amount of the
                              Participant's Aggregate Deferrals that exceeds
                              three percent (3%) of the Participant's
                              Compensation for such Plan Year but does not
                              exceed six percent (6%) of the Participant's
                              Compensation for such Plan Year, minus

                  (ii)  the amount of matching contributions contributed to the
                        Participant's account under the 401(k) Plan for such
                        Plan Year.

            (b)   Subject to the provisions of Section 5.8 hereof, a Participant
shall be fully vested in the Matching Contributions and investment experience
thereon credited to his or her Account.

      5.3.  Performance Contributions.

            (a)   For each Plan Year beginning on or after January 1, 2004, a
Participant's Employer shall credit to the Account of such Participant a
Performance Contribution equal to the product of (i) the amount of the
Participant's Compensation for such Plan Year, multiplied by (ii) the
Performance Contribution Percentage for such Plan Year; provided, however, that
the amount of any Performance Contribution to which a Participant shall be
entitled pursuant to the foregoing shall be reduced by the amount of any
employer performance contributions credited to the Participant's account under
the 401(k) Plan for such Plan Year; and provided further that the Participant
shall not be credited with a Performance Contribution for a Plan Year unless the
Participant satisfies the criteria for receiving an allocation of employer
performance contributions to his or her account under the 401(k) Plan for such
Plan Year. "Performance Contribution Percentage" means the performance
contribution percentage (expressed as a percentage of Compensation) established
by the Company's Board of Directors for the 401(k) Plan for such Plan Year.

            (b)   Subject to the provisions of Section 5.8 hereof, a Participant
shall be fully vested in the Performance Contributions and investment experience
thereon credited to his or her Account.

      5.4.  Basic Contributions.

            (a)   For each Plan Year beginning on or after January 1, 2005 a
Participant's Employer shall credit to the Account of such Participant a Basic
Contribution equal to the product of (i) the amount of the Participant's
Compensation for such Plan Year, multiplied by (ii) three percent (3%);
provided, however, in determining the amount of a Participant's Basic
Contribution for a Plan Year five percent (5%) shall be substituted for three
percent (3%) with respect to Compensation payable on or after the date on which
the Participant attains the age of

                                      -6-
<PAGE>

45; and further provided that the amount of any Basic Contribution to which a
Participant shall be entitled pursuant to the foregoing shall be reduced by the
amount of any employer basic contributions credited to the Participant's account
under the 401(k) Plan for such Plan Year.

            (b) Subject to the provisions of Section 5.8 hereof, a Participant
shall be vested in the Basic Contributions and investment experience thereon
credited to his or her Account if and to the extent the Participant is vested in
his or her employer basic contribution account under the 401(k) Plan.

      5.5.  Timing of Crediting. All Elective Contributions under the Plan shall
be credited to the Accounts of Participants as soon as reasonably practicable
following the payday to which such contributions relate; provided, the Employer
shall credit such contributions no later than the 15th business day of the month
following the month in which occurred the payday to which such contributions
relate. All Matching Contributions under the Plan shall be credited to the
Accounts of Participants no later than the earlier of (i) the 15th day of the
third month following the close of the Plan Year to which they relate or (ii)
the date on which the Participant receives a distribution pursuant to Section
6.2. All Performance Contributions and Basic Contributions under the Plan for a
year shall be credited to the Accounts of Participants no later than the earlier
of (i) March 31 of the following year or (ii) the date on which the Participant
receives a distribution pursuant to Section 6.2; provided, however, that
Performance Contributions under the Plan for a year which are allocated to a
Participant on account of the Participant's death, disability, or termination of
employment after age 65 shall be credited to the Account of such Participant no
later than March 31 of the following year.

      5.6.  Crediting of Investment Experience. A Participant may select one or
more Investment Funds by which the investment experience credited to the
Participant's Account shall be measured. A Participant may periodically
reallocate the investment of his Account among the Investment Funds. Until a
Participant's Account is completely distributed, each Participant's Account
shall be adjusted periodically, as specified by the Administrator but no less
than annually, to reflect (a) the investment experience of the Investment Fund
or Funds which the Participant has selected, and (b) any reallocation of the
Participant's Account among the Investment Funds during the period. Nothing in
this Section 5.6 shall require the Participant's Employer to actually invest
money in the Investment Funds designated by a Participant. The Administrator
shall establish such rules and procedures governing the manner, frequency and
timing of Investment Fund selections by Participants, and such rules and
procedures may change in the Administrator's sole discretion prospectively
without consent of the Participants.

      5.7.  Nonalienability. The benefits provided under the Plan shall not be
subject to alienation, assignment, garnishment, attachment, execution or levy of
any kind, either voluntary or involuntary, and any attempt to cause such
benefits to be subjected shall not be recognized, except to the extent as may be
required by applicable law.

      5.8.  Forfeiture on Account of Misconduct. Notwithstanding any other
provision of the Plan, the Administrator, at the direction of the board of
directors of the Company, shall direct that the portion of a Participant's
Account attributable to Matching Contributions, Performance Contributions and
Basic Contributions be forfeited to the extent of any direct financial loss to
an Employer that the board of directors of the Company determines has been
caused by the Participant's embezzlement, theft, conviction of any felony crime
or other gross misconduct.

                                      -7-
<PAGE>

                                   ARTICLE VI.
                                  DISTRIBUTIONS

      6.1.  Manner of Distribution. The vested amount credited to a
Participant's Account shall be distributed to him (or, in the event of his death
before distribution, to his Beneficiary) in a single sum.

      6.2.  Distribution Date. The distribution of the Participant's Account
shall be made as soon as reasonably practicable following the date that is six
months after the Participant's "separation from service" within the meaning of
Section 409A. In the event the Participant is entitled to a Performance
Contribution for a year which has not been allocated to the Participant's
Account prior to the distribution described in the preceding sentence, the
balance of the Account attributable to such Performance Contribution shall be
distributed to the Participant as soon as practicable after it has been credited
to the Participant's Account.

      6.3.  Facility of Payment. If at any time any distributee is, in the sole
judgment and discretion of the Administrator, legally, physically, or mentally
incapable of receiving any distribution due to such distributee, the
distribution may be made to the guardian or legal representative of the
distributee, or, if none exists, to any other person or institution that, in the
Administrator's sole judgment and discretion, will apply the distribution in the
best interests of the intended distributee. Any payment made in accordance with
the provisions of this Section shall be a complete discharge of any liability
for the making of such payment under the provisions of the Plan.

      6.4.  Designation or Change of Beneficiary. As part of completing a
Deferral Agreement, each Eligible Employee shall designate one or more
Beneficiaries and successor Beneficiaries by completing a Beneficiary
designation form. A Participant may change any Beneficiary designation in
accordance with such rules and procedures established by the Administrator in
its sole discretion. The consent of the Participant's current Beneficiary shall
not be required for a change of Beneficiary, and no Beneficiary shall have any
rights under this Plan except as provided by its terms. The rights of a
Beneficiary who predeceases the Participant shall immediately terminate upon the
Beneficiary's death, unless the Participant specified otherwise. Unless a
different Beneficiary has been designated in accordance with this Section 6.4,
the Beneficiary of any Participant who is lawfully married on the date of the
Participant's death shall be the Participant's surviving spouse. The Beneficiary
of any other Participant who dies without having designated a Beneficiary shall
be the Participant's estate.

      6.5.  Unforeseeable Emergency. Notwithstanding any other provision of this
Plan to the contrary, a Participant may receive a distribution of a portion of
his or her Account (excluding the portion of the Account balance attributable to
Basic Contributions and investment experience thereon) in the event of an
approved hardship due to an Unforeseeable Emergency. "Unforeseeable Emergency"
means a severe financial hardship to the Participant resulting from (i) a sudden
and unexpected illness or accident of the Participant, the Participant's spouse,
or of a dependent of the Participant (as defined in Code Section 152(a)), (ii) a
loss of the Participant's property due to casualty, or (iii) such other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant. The need to send a Participant's child to
college or the desire to purchase a home shall not constitute an Unforeseeable
Emergency. A Participant may request a distribution due to Unforeseeable

                                      -8-
<PAGE>

Emergency by submitting a written request to the Administrator accompanied by
evidence to demonstrate that the circumstances being experienced qualify as an
Unforeseeable Emergency. The Administrator shall have the authority to require
such evidence as it deems necessary to determine if a distribution is warranted.
If an application for a hardship distribution due to an Unforeseeable Emergency
is approved, the distribution shall be limited to an amount sufficient to meet
the severe financial hardship plus taxes reasonably anticipated as a result of
the distribution after taking into account the extent to which such hardship is
or may be relieved:

            (1)   through reimbursement or compensation by insurance or
                  otherwise; or

            (2)   by liquidation of the Participant's assets, to the extent that
                  liquidation of such assets would not itself cause severe
                  financial hardship.

The allowed distribution shall be payable in a single sum as soon as reasonably
practicable following approval of such distribution.

      6.6.  Taxes. The Administrator shall make provision for the reporting and
withholding of any federal, state or local taxes that may be required to be
withheld with respect to the payment of benefits pursuant to the terms of the
Plan and shall pay amounts withheld to the appropriate taxing authorities or
determine that such amounts have been reported, withheld and paid by the
Employer.

                                  ARTICLE VII.
                      AMENDMENT AND TERMINATION OF THE PLAN

      7.1.  Company's Right to Amend or Terminate Plan. The Company may in its
sole discretion, at any time and from time to time, amend in whole or in part,
any of the provisions of this Plan or may terminate it as a whole with respect
to any Participant or group of Participants; provided that no such amendment or
termination shall result in any acceleration of the payment of any Account
except to the extent permitted by Section 409A. Any such amendment shall be
binding upon all Participants and their Beneficiaries and all other parties in
interest. The Company may amend, modify or terminate any Deferral Agreement made
hereunder to the extent necessary or advisable to comply with the requirements
of Section 409A.

      7.2.  Form of Amendment. Any amendment or termination of the Plan shall be
effectuated by a written resolution of the board of directors of the Company,
and shall become effective as of the date specified therein.

      7.3.  Restriction on Retroactive Amendments. No amendment may be made that
retroactively deprives a Participant of any amount credited to his Account
before the date of the amendment except to the extent required to comply with
Section 409A.

      7.4.  Distribution upon Termination. Upon termination of the Plan, no
further Elective Contributions, Matching Contributions, Performance
Contributions or Basic Contributions shall be made under the Plan. Accounts of
Participants shall continue to be governed by the terms of the Plan as in effect
on the date of termination, until distributed in accordance with the terms of
the Plan. Notwithstanding the foregoing, the Company in its sole discretion may
to the extent permitted by Section 409A (including, on account of a change of
control of one or more

                                      -9-
<PAGE>

Employers within the meaning of Section 409A), provide for the immediate
distribution of all Accounts in the form of a single lump sum payment.

                                 ARTICLE VIII.
                      ADOPTION OF PLAN BY RELATED COMPANIES

      8.1.  Adoption of the Plan. A Related Company may, with the approval of
the board of directors of the Company, and by written resolution of its own
board of directors, adopt the Plan. From and after the date as of which such
Related Company shall adopt the Plan, it shall be included within the meaning of
the term "Employer" for all purposes hereunder.

      8.2.  Withdrawal of a Participating Employer. A participating Employer
may, by resolution of its board of directors, withdraw from the Plan as of any
date upon ninety (90) days advance written notice to the Administrator. If an
Employer shall cease to exist, it shall automatically be withdrawn from
participation in the Plan unless a successor organization adopts the Plan in
accordance with Section 8.1. Upon the withdrawal of a participating Employer,
such Employer shall distribute, to the extent permitted by Section 409A, each
applicable Participant's vested Account as though his employment terminated on
the date of withdrawal in accordance with Article VI of the Plan.

                                  ARTICLE IX.
                               PLAN ADMINISTRATION

      9.1.  Generally. The Plan shall be administered by the Administrator. If
the president of the Company establishes an administrative committee to serve as
the Administrator, the president may terminate the administrative committee,
reduce its membership or may remove any member of the administrative committee
at any time in his sole discretion, with or without cause, and may fill any
vacancy. Any person appointed by the president to serve as a member of an
administrative committee may resign by delivering a written resignation to the
president of the Company. Any such resignation shall become effective upon its
receipt by the president or on such other date as is agreed by the president and
the resigning person. If the president of the Company appoints an administrative
committee, the administrative committee shall act by a majority of its members
in office and may take action either by vote at a meeting or by consent in
writing without a meeting. The Administrator may adopt such rules and
regulations as it deems desirable for the conduct of its affairs and the
administration of the Plan.

      9.2.  Powers of the Administrator. In carrying out its duties with respect
to the general administration of the Plan, the Administrator shall have, in
addition to any other powers conferred by the Plan or by applicable law, the
following powers:

            (a)   to maintain the Plan's Accounts and all records necessary for
the administration of the Plan;

            (b)   to interpret and construe the provisions of the Plan and to
make and publish such rules and regulations for the administration of the Plan
as are not inconsistent with the terms thereof;

            (c)   to establish and modify the method of accounting for the Plan;

                                      -10-
<PAGE>

            (d)   to employ legal counsel, accountants and other consultants to
aid in exercising its powers and carrying out its duties hereunder, and

            (e)   to perform any other acts which are necessary for the proper
and efficient administration of the Plan.

      9.3.  Indemnification of Administrator. Each Employer shall indemnify and
hold harmless the Administrator against any and all expenses and liabilities
arising out of the Administrator's action or failure to act in its capacity as
Administrator, excepting only expenses and liabilities arising out of the
Administrator's own willful misconduct or gross negligence. The right of
indemnification shall be in addition to any other legal rights to which the
Administrator may be entitled. The liabilities and expenses against which the
Administrator shall be indemnified hereunder by the Employers shall include,
without limitation, the amount of any settlement or judgment costs, legal
counsel fees and related charges reasonably incurred in connection with a claim
asserted or a proceeding brought against the Administrator or settlement
thereof.

      9.4.  Right to Settle Claims. The Employer may, at its own expense and in
its sole discretion, settle any claim asserted or proceeding brought against the
Administrator.

      9.5.  Claims Procedure. If a dispute arises between the Administrator and
a Participant or Beneficiary over the amount of benefits payable under the Plan,
such claims for benefits shall be subject to the claims procedures set forth in
the 401(k) Plan, as amended from time to time.

      9.6.  Expenses of the Administrator. All reasonable expenses of the
Administrator incurred in connection with the administration of the Plan shall
be paid by the Employers.

                                   ARTICLE X.
                                  MISCELLANEOUS

      10.1. No Employment Guarantee. Neither the establishment of the Plan, any
modification thereof, the creation of any fund or account, nor the payment of
any benefits under the Plan shall be construed as giving to any Participant or
other person any legal or equitable right against the Employer or the
Administrator except as provided herein. Under no circumstances shall the
maintenance of this Plan constitute a contract of employment or shall the terms
of employment of any Participant be modified in any way or affected hereby.
Accordingly, participation in the Plan shall not give any Participant a right to
be retained in the employ of the Employer or derogates from the right of the
Employer to discharge any Participant at any time without regard to the effect
of such discharge upon his rights as a Participant in the Plan.

      10.2. No Rights Under Plan Except as Set Forth Herein. Nothing in this
Plan, express or implied, is intended, or shall be construed, to confer upon or
give any person, firm, association, or corporation, other than the parties
hereto and their successors in interest, any right, remedy, or claim under or by
reason of this Plan or any covenant, condition, or stipulation hereof, and all
covenants, conditions and stipulations in this Plan, by or on behalf of any
party, are for the sole and exclusive benefit of the parties hereto.

                                      -11-
<PAGE>

      10.3. Governing Law. This Plan shall be interpreted and construed in
accordance with ERISA, and to the extent not preempted thereby, the laws of the
State of Illinois.

      10.4. Headings. The headings used in the Plan are for convenience only,
shall not constitute a part of the Plan, and shall not be deemed to limit,
characterize, or affect in any way any provisions of the Plan. All provisions of
the Plan shall be construed as if no captions had been used in the Plan.

      10.5. Construction. Whenever used herein, the masculine pronoun shall be
deemed to include the feminine, and the singular to include the plural, unless
the context clearly indicates otherwise.

      10.6. Severability. If any provision of this Plan is held illegal or
invalid for any reason, the remaining provisions shall remain in full force and
effect and shall be construed and enforced in accordance with the purposes of
the Plan as if the illegal or invalid provision did not exist.

      IN WITNESS WHEREOF, the Company has caused this document to be executed by
its _______________________ this ___ day of ____________, 2005.

                                            CNA SURETY CORPORATION

                                            By:________________________________

                                            Its:_______________________________

                                      -12-

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