8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): July 27, 2010

PMA Capital Corporation

(Exact name of registrant as specified in its charter)

Pennsylvania	001-31706	23-2217932
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

380 Sentry Parkway Blue Bell, Pennsylvania	19422
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (610) 397-5298

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

þ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01.  Entry into a Material Definitive Agreement.

On July 27, 2010, PMA Capital Corporation (the “Company”) entered into a Voting Agreement with MMCAP International, Inc. SPC and MM Asset Management Inc. (collectively, the “Shareholders”).  Pursuant to the Voting Agreement, the Shareholders agreed to vote the shares of the Company’s class A common stock owned by them in the manner recommended by the Company’s Board of Directors with respect to: (i) approval of the Agreement and Plan of Merger dated June 9, 2010 among the Company, Old Republic International Corporation (“Old Republic”) and OR New Corp. (the “Merger Agreement”); (ii) any matter reasonably necessary for consummation of the transactions contemplated by the Merger Agreement; and (iii) any Alternative Proposal (as defined in the Merger Agreement).

On July 21, 2010, the Shareholders filed a Schedule 13G with the Securities and Exchange Commission indicating that they beneficially owned 1,616,129 shares of the Company’s class A common stock.  After consideration, the Company’s Board of Directors deemed the Shareholders to be an “Exempted Person” under the Company’s Section 382 Rights Plan for so long as the Shareholders beneficially own 5% or more, but less than 10% of the Company’s class A common stock or until the Board of Directors otherwise determines.

A copy of the Voting Agreement is filed as Exhibit 10.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 8.01.  Other Events

A Special Meeting of Shareholders of the Company will be held on Tuesday, September 21, 2010.  At the Special Meeting, shareholders will be asked to adopt the Merger Agreement.  The record date for shareholders entitled to vote at the Special Meeting is July 30, 2010.

Important Information for Investors and Shareholders

Old Republic has filed with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4 that includes a preliminary proxy statement of PMA Capital Corporation.  Old Republic and PMA have also filed other documents with the SEC regarding the proposed transaction.  A definitive proxy statement will be sent to PMA’s shareholders.  INVESTORS AND SHAREHOLDERS ARE ADVISED TO READ THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE, AND OTHER DOCUMENTS THAT ARE FILED WITH THE SEC BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER, PMA AND OLD REPUBLIC.

Investors and shareholders may obtain free copies of the proxy statement/prospectus and other documents filed by PMA, at the SEC’s web site at www.sec.gov or at PMA’s web site at www.pmacapital.com. The proxy statement and such other documents may also be obtained for free from PMA by directing such request to Investor Relations, PMA Capital Corporation, 380 Sentry Parkway, Blue Bell, Pennsylvania, telephone: 610-397-5298.

PMA and its directors, executive officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies from PMA’s shareholders in connection with the proposed transaction. Information concerning the interests of those persons is set forth in the preliminary proxy statement/prospectus and PMA’s proxy statement relating to the 2010 annual meeting of shareholders and Annual Report on Form 10-K for the fiscal year ended December 31, 2009, all of which have been filed with the SEC.

Item 9.01. Financial Statements and Exhibits.

(d)  Exhibits

Exhibit No.                      Description                                                                                              &# 160;            

10.1 Voting Agreement dated July 27, 2010 by and among MMCAP International, Inc. SPC, MM Asset Management Inc. and PMA Capital Corporation.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	PMA Capital Corporation
July 30, 2010	By:	/s/ Stephen L. Kibblehouse
	Name:		Stephen L. Kibblehouse
	Title:		Executive Vice President & General Counsel

Exhibit Index

Exhibit No.                      Description                                                                                              &# 160;            

10.1 Voting Agreement dated July 27, 2010 by and among MMCAP International, Inc. SPC, MM Asset Management Inc. and PMA Capital Corporation.

EX-10.1

Exhibit 10.1

VOTING AGREEMENT

This VOTING AGREEMENT (this “Agreement”) is dated as of July 27, 2010, by and between MMCAP International, Inc. SPC and MM Asset Management Inc. (collectively, “Shareholder”) and PMA Capital Corporation, a Pennsylvania corporation (the “Company”).  All capitalized terms used but not defined herein shall have the meanings assigned to them in the Merger Agreement (defined below).

WHEREAS, the Shareholder is the holder of shares of Class A common stock of the Company (“Company Common Stock”);

WHEREAS, the Company, Old Republic International Corporation (“ORI”) and OR New Corp. (“Merger Sub”) entered into an Agreement and Plan of Merger dated June 9, 2010 (as such agreement may be subsequently amended or modified, the “Merger Agreement”), pursuant to which Merger Sub shall merge with and into the Company and, in connection therewith, each outstanding share of Company Common Stock will be converted into the right to receive the Merger Consideration; and

WHEREAS, Shareholder owns or has the right to vote the shares of Company Common Stock identified on Exhibit A hereto (such shares, together with all shares of Company Common Stock subsequently acquired by Shareholder during the term of this Agreement, including through the exercise of any stock option or other equity award, warrant or similar instrument, being referred to as the “Shares”).

NOW, THEREFORE, in consideration of the promises, representations, warranties and agreements contained herein, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

Section 1.  Agreement to Vote Shares.  Shareholder agrees that, prior to the Expiration Date (as defined in Section 6), at any meeting of shareholders of the Company, however called, or at any adjournment or postponement thereof, or in connection with any written consent of the shareholders of the Company, except as otherwise agreed to in writing in advance by the Company, Shareholder shall:

(a)           appear at each such meeting, in person or by proxy, and thereby cause the Shares to be counted as present thereat for purposes of calculating a quorum; and

(b)           from and after the date hereof until the Expiration Date, vote (or cause to be voted), in person or by proxy, or deliver a written consent (or cause a consent to be delivered) with respect to, all the Shares (whether acquired heretofore or hereafter) that are beneficially owned by Shareholder, or as to which Shareholder has, directly or indirectly, the right to vote or direct the voting, in the manner recommended by the Company’s Board of Directors with respect to (i) approval of the Merger Agreement; (ii) any matter reasonably necessary for consummation of the transactions contemplated by the Merger Agreement; and (iii) any Alternative Proposal.

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Section 2.  No Inconsistent Agreements.  Shareholder hereby agrees that Shareholder shall not enter into any voting agreement or grant a proxy or power of attorney with respect to the Shares that is inconsistent with Shareholder’s obligations under this Agreement.

Section 3.  Company Board Action.  The Company’s Board of Directors (the “Board”) agrees to make a determination that Shareholder is an “Exempted Person,” as such term is defined in the Company’s Section 382 Right Agreement dated August 6, 2009, for so long as the Shareholder beneficially owns more than 5% but less than 10% of the outstanding Company Common Stock or until the Board of Directors shall earlier determine.

Section 4.  Representations and Warranties of Shareholder.  Shareholder represents and warrants to and agrees with the Company as follows:

(a)           Shareholder has all requisite capacity and authority to enter into and perform his, her or its obligations under this Agreement.

(b)           This Agreement has been duly executed and delivered by Shareholder, and assuming the due authorization, execution and delivery by the Company, constitutes the valid and legally binding obligation of Shareholder enforceable against Shareholder in accordance with its terms (except as such enforceability may be limited by applicable bankruptcy, insolvency and similar laws affecting creditors’ rights and remedies generally and to general principles of equity, whether applied in a court of law or a court of equity).

(c)           The execution and delivery of this Agreement by Shareholder does not, and the performance by Shareholder of his, her or its obligations hereunder and the consummation by Shareholder of the transactions contemplated hereby will not, violate or conflict with, or constitute a default under, any agreement, instrument, contract or other obligation or any order, arbitration award, judgment or decree to which Shareholder is a party or by which Shareholder is bound, or any statute, rule or regulation to which Shareholder is subject or, in the event that Shareholder is a corporation, partnership, trust or other entity, any charter, bylaw or other organizational document of Shareholder.

(d)           Shareholder is the beneficial owner of and has good title to all of the Shares set forth on Exhibit A hereto, and the Shares are so owned free and clear of any liens, security interests, charges or other encumbrances, except as otherwise described on Exhibit A hereto.  Shareholder does not own, of record or beneficially, any shares of capital stock of the Company other than the Shares Shareholder has the right to vote the Shares, and none of the Shares is subject to any voting trust or other agreement, arrangement or restriction with respect to the voting of the Shares, except as contemplated by this Agreement.

Section 5.  Specific Performance; Remedies; Attorneys Fees.  Shareholder acknowledges that it will be impossible to measure in money the damage to the Company if Shareholder fails to comply with the obligations imposed by this Agreement and that, in the event of any such failure, the Company will not have an adequate remedy at law or in equity.  Accordingly,

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Shareholder agrees that injunctive relief or other equitable remedy, in addition to remedies at law or in damages, is the appropriate remedy for any such failure and will not oppose the granting of such relief on the basis that the Company has an adequate remedy at law.  Shareholder further agrees that Shareholder will not seek, and agrees to waive any requirement for, the securing or posting of a bond in connection with the Company’s seeking or obtaining such equitable relief.  Shareholder also agrees that if Shareholder fails to comply in any material respect with the obligations imposed by this Agreement, Shareholder shall pay to the Company all of the Company’s reasonable costs and expenses (including attorneys’ fees) in connection with enforcing its rights under this Agreement.

Section 6.  Term of Agreement; Termination.  As used in this Agreement, the term “Expiration Date” shall mean the earlier to occur of (a) the receipt of shareholder approval of the Merger Agreement, (b) such date and time as the Merger Agreement shall be terminated, or (c) upon mutual written agreement of the parties to terminate this Agreement.  Upon termination or expiration, no party shall have any further obligations or liabilities hereunder; provided, however, such termination shall not relieve any party from liability for any willful breach of this Agreement prior to such termination.  Agreement is to terminate if none of the above has occurred before October 30, 2010.

Section 7.  Entire Agreement; Amendments.  This Agreement supersedes all prior agreements, written or oral, among the parties hereto with respect to the subject matter hereof and contains the entire agreement among the parties with respect to the subject matter hereof.  This Agreement may not be amended, supplemented or modified, and no provisions hereof may be modified or waived, except by an instrument in writing signed by each party hereto.  No waiver of any provision hereof by either party shall be deemed a waiver of any other provision hereof by any such party, nor shall any such waiver be deemed a continuing waiver of any provision hereof by such party.

Section 8.  Severability.  In the event that any one or more provisions of this Agreement shall for any reason be held invalid, illegal or unenforceable in any respect, by any court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement and the parties shall use their reasonable efforts to substitute a valid, legal and enforceable provision which, insofar as practical, implements the purposes and intents of this Agreement.

Section 9.  Further Assurances.  Shareholder shall, from time to time, execute and deliver, or cause to be executed and delivered, such additional or further consents, documents and other instruments as the Company may reasonably request for the purpose of effectively carrying out the transactions contemplated by this Agreement.

Section 10.  Governing Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the Commonwealth of Pennsylvania, without giving effect to choice of law principles that would cause the laws of another jurisdiction to apply.

Section 11.  Jurisdiction.  Each of the parties hereto (i) consents to submit itself to the personal jurisdiction of the courts of the Commonwealth of Pennsylvania or, if under applicable law exclusive jurisdiction over such matter is vested in the federal courts, any court of the United

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States located in the Commonwealth of Pennsylvania, in the event any dispute arises out of this Agreement or any of the transactions contemplated by this Agreement, (ii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, (iii) agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated by this Agreement in any court other than the courts of the Commonwealth of Pennsylvania or, if under applicable law exclusive jurisdiction over such matter is vested in the federal courts, any court of the United States located in the Commonwealth of Pennsylvania, and (iv) to the fullest extent permitted by law, consents to service being made through the notice procedures set forth in this Agreement.  Each of the parties hereto hereby agrees that, to the fullest extent permitted by law, service of any process, summons, notice or document by U.S. registered mail to the respective addresses set forth in this Agreement shall be effective service of process for any suit or proceeding in connection with this Agreement or the transactions contemplated hereby.

Section 12.  Publication.  Shareholder hereby permits the Company to publish and disclose in press releases, the Company’s proxy statement and any other disclosures or filings required by applicable law, its identity and ownership of shares of the Company Common Stock, the nature of the commitments, arrangements and understandings pursuant to this Agreement, and/or the text of this Agreement.

Section 13.  Notices.  All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon receipt) by delivery in person, by facsimile or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the following addresses (or at such other address for a party as shall be specified by like notice):

(a)           if to the Company, to:

PMA Capital Corporation

380 Sentry Parkway

Blue Bell, PA  19422

Attention:  Executive Vice President and General Counsel

Facsimile:  (610) 397-5144

(b)           if to Shareholder, to:

MMCAP International Inc., SPC

c/o MM Asset Management Inc.

120 Adelaide Street West

Suite 2601

Toronto, Ontario

Canada M5H 1T1

Attention:  Hillel Meltz

Facsimile:

Section 14.  Counterparts.  This Agreement may be executed and delivered (including by facsimile, email or other electronic transmission) in one or more counterparts, each of which

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when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the date first written above.

PMA CAPITAL CORPORATION

By:   /s/ Stephen L. Kibblehouse

Name: Stephen L. Kibblehouse

Title:  Executive Vice President and

    General Counsel

SHAREHOLDER:

MMCAP INTERNATIONAL, INC. SPC

By:  /s/ Ben Cubitt

Name: Ben Cubitt

Title:  PM

MM MANAGEMENT INC.

By:  /s/ Ben Cubitt

Name: Ben Cubitt

Title:  PM

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EXHIBIT A

SHARES OF COMPANY COMMON STOCK BENEFICIALLY OWNED BY

SHAREHOLDER

	Company
Shareholder	Common Stock
MMCAP International, Inc. SPC	1,616,129
MM Asset Management Inc.	1,616,129