Document:

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                                                                     Exhibit 4.3

CUSIP No. 751302AA8                                                  $40,000,000

                                RAM HOLDINGS LTD.

                           6.875% SENIOR NOTE DUE 2024

     RAM HOLDINGS LTD., a limited liability company organized under the laws of
Bermuda, promises to pay to Cede & Co. or registered assigns, the principal sum
of $40,000,000 on April 1, 2024.

     Reference is hereby made to the further provisions of this Note set forth
on the reverse hereof, which further provisions shall for all purposes have the
same effect as if set forth at this place.

     This Note shall not be valid until authenticated by the manual signature of
the Fiscal Agent (as defined on the reverse hereof) or the Authenticating Agent.

<PAGE>

          IN WITNESS WHEREOF, RAM HOLDINGS LTD. has caused this Note to be
signed by its duly authorized officers and its corporate seal to be affixed
hereto or imprinted hereon.

Dated: March ____, 2004                 RAM HOLDINGS LTD.

Authenticated:

                                        By:
                                            ------------------------------------
THE BANK OF NEW YORK,                   Name:
as Fiscal Agent                               ----------------------------------
                                        Title:
                                               ---------------------------------

By:                                     By:
    ---------------------------------       ------------------------------------
    Authorized Signatory                Name:
                                              ----------------------------------
                                        Title.
                                               ---------------------------------

<PAGE>

                                RAM HOLDINGS LTD.

                          6.875% Note due April 1, 2024

     UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE (I) BY THE
DEPOSITORY, THE DEPOSITORY TRUST COMPANY, 55 WATER STREET, NEW YORK, NEW YORK
10041 ("DEPOSITORY") TO A NOMINEE OF THE DEPOSITORY, (II) BY A NOMINEE OF THE
DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR (III) BY
THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF
SUCH SUCCESSOR DEPOSITORY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.

     THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF RAM HOLDINGS LTD. THAT
THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A)
TO RAM HOLDINGS LTD. OR (B) FOR SO LONG AS THE NOTES ARE ELIGIBLE FOR RESALE, TO
A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A "QUALIFIED INSTITUTIONAL
BUYER", AS DEFINED IN RULE 144A (TOGETHER WITH ANY SUCCESSOR PROVISION THERETO,
AND AS MAY BE HEREAFTER AMENDED FROM TIME TO TIME, "RULE 144A") UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), IN A TRANSACTION IN
ACCORDANCE WITH RULE 144A, IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF
THE STATES OF THE UNITED STATES, SUBJECT IN EACH CASE TO ANY REQUIREMENT OF LAWS
THAT THE DISPOSITION OF ITS PROPERTY OR THE PROPERTY OF ANY SUCH ACCOUNT OR
ACCOUNTS BE AT ALL TIMES WITHIN ITS OR THEIR CONTROL. ANY RESALE OR OTHER
TRANSFER OF THIS NOTE WHICH IS PROPOSED TO BE MADE PURSUANT TO CLAUSE (B) ABOVE
SHALL REQUIRE THAT THE TRANSFEROR AND THE TRANSFEREE COMPLETE THE CERTIFICATE OF
TRANSFER APPEARING ON THE REVERSE OF THIS NOTE AND DELIVER SUCH CERTIFICATE OF
TRANSFER TO THE FISCAL AGENT UNDER THE FISCAL AGENCY AGREEMENT DATED AS OF MARCH
26, 2004 (THE "FISCAL AGENT").

     BY ITS ACCEPTANCE OF THE NOTES, EACH HOLDER OF THE NOTES SHALL BE DEEMED TO
HAVE REPRESENTED TO RAM HOLDINGS LTD. THAT IT IS ITS INTENT AND IT UNDERSTANDS
IT IS THE INTENT OF RAM HOLDINGS LTD., FOR PURPOSES OF UNITED STATES FEDERAL,
STATE AND LOCAL INCOME TAXES,

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THAT THE NOTES BE TREATED AS INDEBTEDNESS OF RAM HOLDINGS LTD., AGREES TO SUCH
TREATMENT AND AGREES TO TAKE NO ACTION INCONSISTENT WITH SUCH TREATMENT.

     THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE ACT, AND MAY NOT BE REOFFERED,
RESOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR
AN APPLICABLE EXEMPTION THEREFROM AND IN ACCORDANCE WITH THE FISCAL AGENCY
AGREEMENT DATED AS OF MARCH 26, 2004, COPIES OF WHICH ARE AVAILABLE FOR
INSPECTION AT THE PRINCIPAL CORPORATE TRUST OFFICE OF THE FISCAL AGENT. EACH
PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE ACT PROVIDED BY
RULE 144A THEREUNDER.

     BY ITS ACCEPTANCE OF THE NOTES, EACH HOLDER OF THE NOTES SHALL BE DEEMED TO
HAVE REPRESENTED TO RAM HOLDINGS LTD. THAT SUCH HOLDER IS A QUALIFIED
INSTITUTIONAL BUYER PURCHASING FOR ITS OWN ACCOUNT OR THE ACCOUNT OF PERSONS WHO
ARE QUALIFIED INSTITUTIONAL BUYERS.

     1. Interest. RAM HOLDINGS LTD. (the "Company"), a limited liability company
organized under the laws of the Bermuda, promises to pay interest on the
principal amount of this Note at the rate of 6.875% per annum. The Company will
pay interest semi-annually on April 1 and October 1 of each year, commencing
October 1, 2004 to Holders at the close of business on the relevant record dates
specified in Paragraph 2 below. Interest on the Notes will accrue from the most
recent Interest Payment Date with respect to which interest has been paid or, if
no interest has been paid, from March 26, 2004. Interest will be computed on the
basis of a 360-day year of twelve 30-day months.

     2. Method of Payment. When paying interest on the Notes, the Company will
pay, or cause to be paid, interest on the Notes to the Persons who are
registered Holders at the close of business on the March 15 or September 15 next
preceding the Interest Payment Date. Noteholders must surrender Notes to a
Paying Agent to collect payments of principal and the Make-Whole Amount, if any.
The Company will pay, or cause to be paid, principal, interest and the
Make-Whole Amount in money of the United States that at the time of payment is
legal tender for payment of public and private debt. If a payment date is a
Legal Holiday at a place of payment, payment may be made at that place on the
next succeeding Business Day, and no interest on the amount payable on such
payment date shall accrue for the intervening period.

     3. Paying Agent; Registrar. Initially, The Bank of New York (the "Fiscal
Agent") will act as Paying Agent, Authenticating Agent and Registrar. The
Company may change any Paying Agent, Registrar or Co-Registrar by giving notice
to the Fiscal Agent. The Company may act as Paying Agent, Registrar or
Co-Registrar.

     4. Agreement. The Company issued this Note as one of a duly authorized
issue of Notes of the Company designated as its 6.875% Notes due 2024 (the
"Notes") under a Fiscal

<PAGE>

Agency Agreement, dated as of March 26, 2004 (the "Agreement"), between the
Company and the Fiscal Agent. The Notes are subject to the terms and conditions
hereof and thereof, and Noteholders are referred to the Agreement for a
statement of those terms. Unless the context otherwise requires, terms used
herein that are defined in the Agreement shall have the respective meanings
assigned thereto in the Agreement.

     5. ERISA Restrictions. No employee benefit plan within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), or the prohibited transaction provisions of the Code, as to which the
Company is a party in interest or a disqualified person (each a "Plan"), and no
Person acting on behalf of a Plan, may acquire this Note, unless the acquisition
of the Note is exempt under one or more of Prohibited Transaction Exemptions
84-14, 90-1 or 91-38, 95-60 or 96-23 (or any amendment thereof) or another
applicable exemption from the prohibited transaction provisions under ERISA and
the Code. The purchase by any Person of this Note constitutes a representation
by such Person to the Company and the Fiscal Agent that such Person either (i)
is not a Plan, or (ii) is a Plan, but may acquire such Note under an applicable
exemption from the prohibited transaction provisions under ERISA and the Code.

     6. Denominations; Transfer; Exchange. The Notes are in registered form
without coupons in minimum denominations of $100,000 and any amount in excess
thereof that is an integral multiple of $1,000. Notes may be exchanged as
provided in the Agreement. The Registrar may require a Noteholder, among other
things, to furnish appropriate endorsements, opinions of counsel and transfer
documents and to pay any taxes and fees required by law or permitted by the
Agreement.

     7. Redemption. (a) The Notes are subject to optional redemption, in whole
or in part, at the option of the Company at any time or from time to time, with
at least 45 days' advance notice to the Fiscal Agent and at least 30 days'
advance notice, at a redemption price equal to the sum of (i) accrued interest
to the date of the redemption (the "Redemption Date"), (ii) principal and (iii)
the Make-Whole Amount (as defined in the Agreement), if any.

     (b) In the case of any partial redemption of Notes, the Notes to be
redeemed shall be in an amount not less than 5% of the aggregate principal
amount of the Notes then outstanding and selected by the Fiscal Agent not more
than 30 days prior to the date of such redemption, from the Outstanding Notes
not previously called for redemption, by such method as the Fiscal Agent shall
deem fair and appropriate and which may provide for the selection for redemption
of portions (equal to $1,000 or any integral multiple thereof) of the principal
amount of registered Notes of a denomination larger than $100,000.

     (c) Notices to redeem Notes shall be given to Noteholders in writing
mailed, first-class postage prepaid, to each Holder of registered Notes, or
portions thereof, so to be redeemed, at his address as it appears in the
Register. Such notice will be given once not less than 30 days and not more than
60 days prior to the date fixed for redemption. If by reason of the suspension
of regular mail service, or by reason of any other cause, it shall be
impracticable to give notice to the Noteholders in the manner prescribed herein,
then such notification in lieu thereof as shall be made by the Company or by the
Fiscal Agent on behalf of and at the instruction of the Company shall constitute
sufficient provision of such notice, if such notification shall, so far as may
be

<PAGE>

practicable, approximate the terms and conditions of the mailed notice in lieu
of which it is given. Neither the failure to give notice nor any defect in any
notice given to any particular Noteholder shall affect the sufficiency of any
notice with respect to other Notes. Notices to redeem Notes shall identify the
Notes to be redeemed (including CUSIP numbers) and specify the date fixed for
redemption, the aggregate principal amount of the Notes to be redeemed on such
date, the redemption price, the place or places of payment, that payment will be
made upon presentation and surrender of the Notes to be redeemed (or portion
thereof in the case of a partial redemption), that interest accrued to the date
fixed for redemption (unless the date of redemption is an Interest Payment Date)
will be paid as specified in said notice and that on and after said date
interest thereon will cease to accrue if the Notes are so redeemed. In addition,
in the case of a partial redemption, the Redemption Notice shall specify the
Notes called for redemption and the aggregate principal amount of the Notes to
remain outstanding after the redemption.

     (d) If notice of redemption has been given in the manner set forth in the
Agreement, the Notes so to be redeemed shall be payable in full or in part, as
applicable, on the date specified in such notice and upon presentation and
surrender of the Notes at the place or places specified in such notice, the
Notes shall be paid and redeemed by the Company at the places and in the manner
and currency and at the redemption price together with accrued interest (unless
the Redemption Date is an Interest Payment Date) to the Redemption Date
specified in the Agreement. From and after the Redemption Date, if monies for
the redemption of Notes called for redemption shall have been made available at
the principal office of the Fiscal Agent for redemption on the Redemption Date,
the Notes called for redemption shall cease to bear interest, and the only right
of the Holders with respect to such Notes or portion thereof being redeemed
shall be to receive payment of the redemption price together with accrued
interest (unless the Redemption Date is an Interest Payment Date) to the
Redemption Date as aforesaid. If monies for the redemption of the Notes are not
made available for payment until after the Redemption Date, the Notes called for
redemption shall not cease to bear interest until such monies have been so made
available.

     (e) Any Note which is to be redeemed only in part shall be surrendered
with, if the Company or the Fiscal Agent so requires, due endorsement by, or a
written instrument of transfer in form satisfactory to the Company and the
Fiscal Agent duly executed by, the Noteholder thereof or his attorney duly
authorized in writing, and the Company shall execute, and the Fiscal Agent shall
authenticate and deliver to the Holder of such Note without service charge, a
new registered Note or Notes, of any authorized denomination as requested by
such Noteholder, and as permitted by Section 2.1 of the Agreement, in aggregate
principal amount equal to and in exchange for the unredeemed portion of the
principal of the Note so surrendered.

     8. Persons Deemed Owners. The registered Holder may be treated as its owner
for all purposes.

     9. Amendment, Supplement, Waiver. Subject to certain exceptions, the
Agreement or the Notes may be amended, supplemented or modified, with the
consent of the Company and the Holders of a majority in aggregate principal
amount of the Outstanding Notes, and any existing default may be waived with the
consent of the Holders of at least a majority in aggregate principal amount of
the Outstanding Notes and without the consent of any Noteholder, the Agreement
or the Notes may be amended, modified or supplemented inter alia, to cure any

<PAGE>

ambiguity or correct any defective provision, to evidence the succession of
another entity to the Company and provide for assumption of the Company's
covenants and obligations under the Agreement and the Notes or to make any
change that the Fiscal Agent and the Company determine is necessary or desirable
and which shall not adversely affect the interests of any Noteholder in any
material respect.

     10. Fiscal Agent Dealings With the Company. The Fiscal Agent under the
Agreement, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Company and may otherwise deal with
the Company as if it were not Fiscal Agent.

     11. No Recourse Against Others. A director, officer, employee or policy
owner, as such, of the Company shall not have any liability for any obligations
of the Company under the Notes or the Agreement or for any claim based on, in
respect of or by reason of, such obligations or their creation. Each Noteholder
by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for the issue of the Notes.

     12. Abbreviations. Customary abbreviations may be used in the name of a
Noteholder or an assignee, such as: TEN COM (= tenants in common), TENANT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).

     13. Governing Law. The Agreement, the Notes and the obligations of the
Company thereunder shall be governed by and construed in accordance with the
laws of New York,without regard to the conflicts of laws principles thereof.

     14. Copy of Agreement. The Company will furnish any Noteholder upon written
request and without charge a copy of the Agreement. Requests may be made to: RAM
Holdings Ltd., P.O. Box HM 3302, Hamilton HM PX, Bermuda, Attention: General
Counsel.

<PAGE>

                FORM OF CERTIFICATE TO BE DELIVERED UPON EXCHANGE
                       OR REGISTRATION OF TRANSFER OF NOTE

Re: 6.875% Senior Note due 2024 of RAM Holdings Ltd.

     This Certificate relates to $____________ principal amount of Notes held in
*__ book-entry or *__ definitive form by ____________________________ (the
"Transferor").

The Transferor*:

     - has requested the Registrar and the Fiscal Agent by written order deliver
in exchange for its beneficial interest in Global Notes held by the Depository a
Note or Notes in definitive registered form of authorized denominations and in
an aggregate principal amount equal to its beneficial interest in such Global
Notes (or the portion thereof indicated above); or

     - has requested the Registrar and the Fiscal Agent by written order cause
it, in exchange for its surrendering a Note or Notes in definitive registered
form for cancellation, to be recorded as the owner of a beneficial interest in
Global Notes of an authorized denomination and an aggregate principal amount
equal to its aggregate interest in such definitive Note or Notes (or the portion
thereof indicated above); or

     - has requested the Registrar and the Fiscal Agent by written order
exchange or register the transfer of a Note or Notes.

     In connection with such request and in respect of each such Note, the
Transferor does hereby certify to RAM Holdings Ltd. (the "Company") and the
Registrar either:*

     - Such Note is owned by the Transferor and is being exchanged without
transfer; or

     In connection with the resale or other transfer of such Note occurring
prior to the time the legend originally set forth on such Note (or one or more
predecessor Notes) restricting resales and other transfers thereof has been
removed with the consent of the Company in accordance with the procedures set
forth in the Fiscal Agency Agreement referred to therein (other than a resale or
other transfer made to the Company), the undersigned confirms that without
utilizing any general solicitation or general advertising:

     - Such Note is being transferred by the undersigned to a "qualified
institutional buyer", as defined in Rule 144A under the Securities Act of 1933,
as amended, to whom notice has been given that such transfer is being made in
reliance on Rule 144A, pursuant to the exemption from registration under the
Securities Act of 1933, as amended, provided by Rule 144A thereunder.

<PAGE>

If the foregoing box is not checked, then, so long as such Note shall bear a
legend restricting resales and other transfers thereof (except in the case of a
resale or other transfer made to the Company), the Registrar shall not be
obligated to register such Note in the name of any person other than the holder
thereof unless and until the conditions to any such transfer of registration set
forth in such Note and in the Fiscal Agency Agreement shall have been satisfied.

Dated:
       ------------------------------   ----------------------------------------
                                        (Type or print name of holder)

                                        By:
                                            ------------------------------------
                                            The signature of the holder must
                                            correspond with the name as written
                                            upon the face of such Note in every
                                            particular, without alteration or
                                            enlargement or any change
                                            whatsoever.

                                            [INSERT NAME OF TRANSFEROR]

By:
    ---------------------------------

Date:
      -------------------------------

*    Check applicable box.

<PAGE>

TO BE COMPLETED BY TRANSFEREE

     The undersigned represents and warrants that (i) it is a "qualified
institutional buyer", as defined in Rule 144A under the Securities Act of 1933,
as amended, and acknowledges that the undersigned either has received such
information regarding the Company as the undersigned has requested pursuant to
Rule 144A or has determined not to request such information, (ii) this
instrument has been executed on behalf of the undersigned by one of its
executive officers and (iii) it is aware that the Holder of such Note is relying
upon the undersigned's foregoing representations in order to claim the exemption
from registration provided by Rule 144A. The undersigned acknowledges and agrees
that such Note has not been registered under the Securities Act of 1933, as
amended, and may not be transferred except in accordance with the resale and
other transfer restrictions set forth in the legend thereon. The undersigned
agrees, on its own behalf and on behalf of any accounts for which it is acting,
that it will transfer such Note only in accordance with the transfer
restrictions set forth in such legend. The Company, the Fiscal Agent and the
Registrar are entitled to rely upon this certification and are irrevocably
authorized to produce this certification or a copy hereof to any interested
party in any administrative or legal proceeding or official inquiry with respect
to the matters covered hereby.

Dated:
       ------------------------------   ----------------------------------------
                                        (Type or print name of holder)

                                        By:
                                            ------------------------------------
                                            Executive Officer

<PAGE>

                                  ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations.

          TEN COM--as tenants in common

          UNIF GIFT MIN ACT _____________________ Custodian  ___________________
                                     (Cust)                       (Minor)

                                        Under Uniform Gifts to Minors Act

                                        ________________________________________
                                                         (State)

          TEN ENT--as tenants by the entireties

          JT TEN--as joint tenants with right of survivorship and not as tenants
                  in common

     Additional abbreviations may also be used though not in the above list.<PAGE>
                                                                    Exhibit 10.8

          THE RAM REINSURANCE COMPANY LTD. SUPPLEMENTAL RETIREMENT PLAN

ARTICLE I Introduction: This Plan has been established to provide deferred
     Compensation and retirement benefits to key Employees of the Company.

ARTICLE II Definitions: As used in the Plan the following terms shall be defined
     by the meanings set forth below.

          "ACCOUNT" means an individual bookkeeping account established for each
Participant to record the contributions made thereto under the Plan and the
investment gains and losses thereof.

          "BENEFICIARY" means the person(s) designated by the Participant in
writing on the form provided to the Committee to receive any survivor benefit
payable under the Plan. In the absence of an effective designation, or if no
named beneficiary shall survive the Participant, the beneficiary shall be the
Participant's Spouse, if surviving, or if there is no surviving Spouse, the
Participant's issue, per stirpes, or if there are no surviving issue, the
Participant's estate,

          "BOARD" means the Board of Directors of the Company.

          "COMMITTEE" means the Compensation Committee of the Board, the powers
of which may from time to time be delegated to the Chief Executive Officer, the
Chief Underwriting Officer or Chief Financial Officer of the Company.

          "COMPANY" means RAM Reinsurance Company Ltd..

          "COMPENSATION" means the sum of the Company paid (i) base salary
earned (exclusive of any amounts identified as cost of living allowances) by the

<PAGE>

Participant during the calendar year, (ii) any guaranteed bonuses accrued by
Participants during the calendar year and, (iii) any non-guaranteed bonuses paid
to Participants during the calendar year.

          "DISABILITY" means (i) total disability as defined in the long-term
disability benefit plan of the Company, as in effect from time to time or (ii)
if there is no such plan at the applicable time, physical and or mental
incapacity as determined solely by the Committee.

          "EFFECTIVE DATE" means July 1, 2000, or the date of commencement of
employment with the Company by the Participant if that commencement date is
subsequent to July 1, 2000.

          "EMPLOYEE" means an employee of the Company.

          "EMPLOYER" means the Company and any corporation or other entity (or
any division or unit thereof) (collectively or individually, as the context may
indicate) which is designated, by appropriate action of the Board, as a
participating Employer under the Plan and which adopts the Plan by appropriate
action of its board of directors or other governing body, as applicable. As to
any Participant, at any time of reference, "Employer" means his employer.

          "PARTICIPANT" means an Employee designated by the Committee as a
Participant in the Plan. An individual will be deemed to be a Participant for as
long as he has an Account.

          "PLAN" means this RAM Reinsurance Company Ltd. Supplemental Retirement
Plan.

          "PLAN YEAR" means the fiscal year of the Company.

<PAGE>

          "RETIREMENT" means retirement from employment as an Employee at or
after the age of 65 or, with the consent of the Committee prior to age 65 but at
or after age 55.

          "SEVERE FINANCIAL HARDSHIP" means an unanticipated emergency that is
caused by an event beyond the control of the Participant that would result in
severe hardship thereto if early withdrawal of funds allocated to his Account
were not permitted.

          "SPECIAL PENSION CONTRIBUTION" means a one-time contribution by the
Company under the Plan to each Participant's Account in recognition of each
Participant's employment with the Company through June 30, 2000. The amount of
this Special Pension Contribution will be outlined in a letter to each
Participant from the President and Chief Executive Officer of the Company prior
to July 28, 2000. The Special Pension Contribution for each Participant will be
equal to 10% of the Participant's aggregate Compensation for the period from the
commencement of the Participant's employment with the Company through June 30,
2000, increased by interest earned at 10% per year for the period from
commencement of each Participant's employment with the Company through July 31,
2000.

          "SPOUSE" means the person to whom the Participant was legally married
on the date of the Participant's death.

<PAGE>

ARTICLE III Participation:

     3.1  Eligibility: Every U.S. citizen Employee who works more than 35 hours
          per week and earns Compensation greater than the limitation in effect
          for such Plan Year pursuant to Section 401(a)(17) of the Internal
          Revenue Code of 1986, as amended, may participate in the Plan for such
          Plan year.

ARTICLE IV Funding:

     4.1  Status of Participants: The rights of a Participant or Beneficiary to
          benefits under this Plan shall be solely those of an unsecured
          creditor of the Participant's Employer.

     4.2  Employee Contributions: Subject to the approval of the Committee and
          the requirements of applicable law, a Participant may elect to defer
          some or all of his Compensation. Deferrals shall be made by means of
          payroll deduction and the amounts so deducted shall be credited to the
          Participant's Account(s).

     4.3  Employer Contributions: For each Plan Year commencing on or after the
          Effective Date, the Employer will contribute to the Account of each
          Participant employed thereby during the Plan Year an amount equal to
          10% of the Compensation of such Participant, less any other Employer
          contributions made into any other retirement plan of the Company for
          such Plan Year on behalf of such Participant. These contributions
          shall be

<PAGE>

          deposited to each Participant's Account on a monthly basis in arrears
          with the first such payment being made on July 31, 2000. In addition,
          for each Participant who was employed by the Company prior to July 1,
          2000, each such Participant's Account will be credited with a one-time
          Special Pension Contribution on or before July 31, 2000.

ARTICLE V Accounts:

     5.1  Investing: A Participant may elect to have his Account invested among
          the investment options offered under the Plan from time to time. The
          balance to the credit of each Account will increase or decrease
          depending on the investment results so obtained. The investment
          elections made by a Participant shall be in accordance with the
          procedures and limitations of the Plan.

ARCTICLE VI Vesting:

     6.1  Employer Contribution Percentages: A Participant will become fully
          vested in the portion of his Account attributable to the contributions
          made by his Employer hereunder and the investment earnings or losses
          thereon after 12 months from the date of his commencement of
          employment with his Employer. Should an Employee's employment with his
          Employer be terminated for any reason other than death or Disability
          prior to completion

<PAGE>

          of the aforementioned 12-month service requirement, such Employee will
          not be entitled to any benefit under this Plan.

     6.2  Employee Contribution Percentages: A Participant is always 100% vested
          in the portion of his Account attributable to his own contributions
          and the investment earnings or losses thereon.

ARTICLE VII Distributions:

     7.1  The Participant's Account shall be distributed in accordance with his
          or her election as set forth in the Participant's enrollment form
          and/or Deferral Agreement. In no event shall the amount distributed
          exceed the amount of the Account balance as of the date of
          distribution.

     7.2  Death/Disability: Upon the occurrence of a Participant's death or
          Disability, his entire Account shall become 100% vested and the
          balance to the credit thereof will be paid to the Participant or his
          Beneficiary(s), as applicable, in a single sum payment as soon as
          reasonably practicable thereafter.

     7.3  Hardship: In the event that a Participant suffers a severe financial
          hardship, at the sole discretion of the Committee, all or a portion of
          the vested Account balance thereof may be paid to the Participant to
          the extent necessary to alleviate such hardship.

<PAGE>

ARTICLE VIII Administration:

     8.1  Committee: The Plan will be administered by the Committee. The
          Committee will have full and complete authority, in its sole and
          absolute discretion, (i) to exercise all of the powers granted to it
          under the Plan, (ii) to construe, interpret and implement the Plan,
          and any other related documents, (iii) to prescribe, amend and rescind
          rules relating to the Plan, (iv) to make determinations necessary or
          advisable in administering the Plan, (v) to make all decisions
          regarding financial hardship withdrawals under Section 7.2, and (vi)
          to correct any defect, supply any omission and reconcile any
          inconsistency in the Plan.

     8.2  Retention of Experts: The Committee may retain such accountants,
          counsel and other experts as the Committee deems necessary or
          desirable in connection with the administration of the Plan, the
          reasonable fees and expenses of which shall be paid by the Company,

     8.3  Payments: The Company will pay all reasonable expenses incurred in
          administering the Plan, including but not limited to, the payment of
          fees incurred pursuant to Section 8.2.

<PAGE>

ARTICLE IX Amendment and Termination:

     9.1  Amendments: The Board may at any time amend the Plan, provided that no
          amendment may decrease any Participant's or Beneficiary's Account
          balance as of the time immediately prior to the adoption of such
          amendment or its effective date, whichever is later, or defer or
          delay payments to any Participant or Beneficiary without the express
          written consent thereto by such Participant or Beneficiary. Written
          notice of any amendments will be given to each Participant.

     9.2  Termination: The Board may terminate the Plan at any time in its sole
          discretion provided, however, that (a) the termination of the Plan
          shall not result in any decrease of a Participant's or Beneficiary's
          Account balance as of the time immediately prior to such termination,
          (b) all of the Participants' and Beneficiaries' Accounts shall become
          100% vested as of such termination and (c) all of the Participants'
          and Beneficiaries' Accounts shall be fully distributed to the
          Participants or Beneficiaries, as applicable, as soon as reasonably
          practicable thereafter.

<PAGE>

ARTICLE X Miscellaneous:

     10.1 Right to Employment: Nothing contained within this Plan guarantees a
          Participant employment with the Company or any Employer, nor does the
          Plan limit the right of the Company or any Employer to terminate a
          Participant's employment therewith.

     10.2 Gender and Number: In interpreting the Plan, the masculine gender will
          include the feminine and the singular will include the plural unless
          the text indicates otherwise.

     10.3 Governing Law: The Plan shall be governed by and construed in
          accordance with the laws of the State of New York without regard to
          the principles of conflicts of law.

Signed for on behalf of the Committee by:

/s/ Robert A. Meyer                     Date: 12/20/00
-------------------------------------
Robert A. Meyer
Chairman, President & Chief Executive
Officer

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