PMA CAPITAL CORP
EXHIBIT 10.30
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<P ALIGN="RIGHT"><B>Exhibit 10.30</B></P>

<P ALIGN="CENTER"><B>FIRST AMENDMENT TO<BR> <U>LETTER OF CREDIT AGREEMENT </U></B></P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This <B>FIRST AMENDMENT
TO LETTER OF CREDIT AGREEMENT</B>&nbsp;(this &#147;<B>Amendment</B>&#148;) is made as of the
17th day of June, 2002, by and among PMA CAPITAL CORPORATION, a Pennsylvania corporation
(the &#147;<U>Applicant</U>&#148;), each Co-Applicant a party hereto, FLEET NATIONAL
BANK, as a &#147;Bank&#148;under the Credit Agreement (as defined herein), and FLEET
NATIONAL BANK, as agent for itself and any other Banks (in such capacity, together with
its successors and assigns in such capacity, the &#147;<U>Agent</U>&#148;), and as
issuing bank (in such capacity, together as with its successors and assigns in such
capacity, the &#147;<U>Issuing Bank</U>&#148;) for the Letters of Credit (as defined in
the Credit Agreement).  </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>, the
Applicant, the Co-Applicants, the Banks, the Agent, and the Issuing Bank are parties to a
certain Letter of Credit Agreement dated as of December 4, 2001 (as amended and in effect
from time to time, the &#147;<B>Credit Agreement</B>&#148;);  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>,
at the request of the Applicant and the Co-Applicants, the other parties to the
Credit Agreement have agreed to amend certain provisions of the Credit Agreement
as more particularly described below; </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW,
THEREFORE</B>, in consideration of the foregoing, the mutual agreements herein
contained and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto, intending to be legally
bound, hereby agree as follows: </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&sect;1.&nbsp;
<U>Definitions</U>.</B>&nbsp;&nbsp;All undefined capitalized terms used
herein shall have the meanings ascribed to them in the Credit Agreement. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&sect;2.&nbsp;
<U>Removal</U></B><U></U> <B><U>of</U></B><U></U> <B><U>Caliber</U></B><U></U>
<B><U>as</U></B><U></U> <B><U>Material</U></B><U></U>
<B><U>Subsidiary</U></B><U></U> <B><U>and</U></B><U></U>
<B><U>Consolidated</U></B><U></U>
<B><U>Affiliate</U>.</B>&nbsp;&nbsp;Caliber One Indemnity Company, a
Delaware insurance company, shall not be a Material Subsidiary or Consolidated
Affiliate for any purpose under the Credit Agreement or the other Credit
Documents on and after the date hereafter. In furtherance thereof, the
references to Caliber in the definitions of &#147;Material Subsidiary&#148; and
&#147;Consolidated Affiliate&#148; contained in the Credit Agreement are hereby
deleted. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&sect;3.&nbsp;
<U>Ratification,</U></B><U></U> <B><U>etc</U>.</B>&nbsp;&nbsp;The Applicant and
the Co-Applicants hereby ratify and confirm all of their obligations, covenants,
and agreements set forth in the Credit Agreement and the other Credit Documents.
The Applicant and the Co-Applicants hereby confirm and agree that all
representations and warranties of the Applicant and the Co-Applicants contained
in the Credit Agreement are true and correct in all material respects as of the
date hereof (except to the extent any such representation or warranty is
expressly stated to have been made as of a specific date, in which case such
representation or warranty shall be true and correct in all material respects as
of such date). All references to the Credit Agreement in any of the Credit
Documents shall refer to the Credit Agreement as it has been modified by this
Amendment. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&sect;<B>4.&nbsp;<U>Governing</U>&nbsp;<U>Law</U></B>. This
Amendment shall for all purposes be construed in accordance with and governed by the laws
of the Commonwealth of Massachusetts. </P>


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<P ALIGN="CENTER">-2- </P>


<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&sect;<B>5.&nbsp;<U>Headings</U></B>. The
captions in this Amendment are for convenience of reference only and shall not define or
limit the provisions hereof. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&sect;6.</B>&nbsp;<U><B>Counterparts</B></U><B>.</B>&nbsp;&nbsp;This
Amendment and any amendment hereof may be executed in several counterparts and by each
party on a separate counterpart, each of which when so executed and delivered shall be an
original, and all of which together shall constitute one instrument. In proving this
Amendment it shall not be necessary to produce or account for more than one such
counterpart signed by the party against whom enforcement is sought. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&sect;7.&nbsp;</B><U><B>Severability</B></U><B>.</B>&nbsp;&nbsp;The provisions of this Amendment are
severable, and if any one clause or provision hereof shall be held invalid or
unenforceable in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect only such clause or provision, or part thereof, in
such jurisdiction, and shall not in any manner affect such clause or provision
in any other jurisdiction, or any other clause or provision of this Amendment in
any jurisdiction. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&sect;8.&nbsp;</B><U><B>Integration</B></U><B>.</B>&nbsp;&nbsp; This Amendment, together with the Credit
Documents, embodies the entire agreement and understanding among the Credit
Parties, the Agent, the Issuing Bank and the Banks with respect to the subject
matter thereof and supersedes all prior agreements and understandings among the
Credit Parties, the Agent, the Issuing Bank and the Banks with respect to the
subject matter thereof. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS
WHEREOF,</B> the undersigned have duly executed this Amendment as a sealed
instrument as of the date first set forth above. </P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="TOP">
     <TD WIDTH="30%">&nbsp;</TD>
     <TD WIDTH="8%">&nbsp;</TD>
     <TD WIDTH="62%">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD COLSPAN="2">PMA CAPITAL CORPORATION</TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD>By:</TD>
     <TD>/s/ William E. Hitselberger</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD></TD>
     <TD><HR NOSHADE SIZE="1" WIDTH="75%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD>Name:</TD>
     <TD>William E. Hitselberger</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD>Title:</TD>
     <TD>Senior Vice President, Chief <BR>Financial Officer and Treasurer</TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD COLSPAN="2">PMA CAPITAL INSURANCE COMPANY</TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD>By:</TD>
     <TD>/s/ Albert D. Ciavardelli</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD></TD>
     <TD><HR NOSHADE SIZE="1" WIDTH="75%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD>Name:</TD>
     <TD>Albert D. Ciavardelli</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD>Title:</TD>
     <TD>Vice President and Treasurer</TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3">&nbsp;</TD></TR>
</TABLE>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<P ALIGN="CENTER">-3- </P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="TOP">
     <TD WIDTH="30%">&nbsp;</TD>
     <TD WIDTH="8%">&nbsp;</TD>
     <TD WIDTH="62%">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD COLSPAN="2">PENNSYLVANIA MANUFACTURERS' <BR>ASSOCIATION INSURANCE COMPANY</TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD>By:</TD>
     <TD>/s/ William E. Hitselberger</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD></TD>
     <TD><HR NOSHADE SIZE="1" WIDTH="75%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD>Name:</TD>
     <TD>William E. Hitselberger</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD>Title:</TD>
     <TD>Senior Vice President, Chief <BR>Financial Vice President and<BR> Treasurer</TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD COLSPAN="2">HIGH MOUNTAIN REINSURANCE, LTD.</TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD>By:</TD>
     <TD>/s/ Edward S. Hochberg</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD></TD>
     <TD><HR NOSHADE SIZE="1" WIDTH="75%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD>Name:</TD>
     <TD>Edward S. Hochberg</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD>Title:</TD>
     <TD>Treasurer and Secretary</TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD COLSPAN="2">FLEET NATIONAL BANK,<BR>Individually and as Agent and Issuing Bank </TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD>By:</TD>
     <TD>/s/ George J. Urban</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD></TD>
     <TD><HR NOSHADE SIZE="1" WIDTH="75%" ALIGN="LEFT"></TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD>Name: </TD>
     <TD>George J. Urban</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD>Title: </TD>
     <TD>Portfolio Manger</TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3">&nbsp;</TD></TR>
</TABLE>
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