Amendment to Markel Corporation Executive Bonus Plan for Senior Executive Officers

Summary

Markel Corporation has amended its Executive Bonus Plan for Senior Executive Officers, which provides cash bonuses based on the five-year average growth in the company's book value per share. The amendment, approved by the Compensation Committee on August 21, 2003, changes how book value is calculated by no longer excluding the benefits from issuing equity securities before January 1, 2003, at prices above the previous year-end book value, or excluding goodwill amortization costs from prior transactions. This affects how future bonuses are determined for senior executives.

EX-10.1 4 dex101.txt EXHIBIT 10.1 Exhibit 10.1 Description of Amendment to Executive Bonus Plan In addition to base salary, Markel Corporation (the "Company") has approved a bonus plan for Senior Executive Officers in which cash bonuses are paid based on increases in the book value of the Company's Common Stock. Under the Executive Bonus Plan, bonuses for Senior Executive Officers, expressed as a percentage of base salary, are awarded based on a five-year average of the compound growth in book value per share of Common Stock. The Executive Bonus Plan is described in the Company's Proxy Statement for the Annual Meeting of Shareholders held on May 14, 2003. On August 21, 2003, the Compensation Committee approved an adjustment to the method of calculating book value pursuant to which book value calculations will not be adjusted to exclude the benefit of issuing equity securities before January 1, 2003 at prices above the preceding year end book value per share or to exclude the goodwill amortization costs resulting from prior transactions.