PMA CAPITAL CORPORATION

SUPPLEMENTAL EXECUTIVE
RETIREMENT PLAN(AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2000)

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TABLE OF CONTENTS

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ARTICLE I - DEFINITIONS...........................................................................................1

   1.1   Actuarial Equivalent.....................................................................................1
   1.2   Administrator............................................................................................1
   1.3   Affiliated Employer......................................................................................1
   1.4   Board of Directors.......................................................................................2
   1.5   Cause....................................................................................................2
   1.6   Change of Control........................................................................................2
   1.7   Code.....................................................................................................2
   1.8   Effective Date...........................................................................................3
   1.9   Early Retirement Date....................................................................................3
   1.10   Eligible Officer........................................................................................3
   1.11   Excess Retirement Benefit...............................................................................3
   1.12   Good Reason.............................................................................................3
   1.13   Grandfathered Early Retirement Benefit..................................................................4
   1.14   Grandfathered Normal Retirement Benefit.................................................................4
   1.15   Grandfathered Separation from Service Benefit...........................................................4
   1.16   Limited Benefit Assumptions.............................................................................4
   1.17   Limited Early Retirement Benefit........................................................................4
   1.18   Limited Normal Retirement Benefit.......................................................................4
   1.19   Limited Separation from Service Benefit.................................................................4
   1.20   New Early Retirement Benefit............................................................................4
   1.21   New Normal Retirement Benefit...........................................................................4
   1.22   New Separation from Service Benefit.....................................................................5
   1.23   Normal Retirement Date..................................................................................5
   1.24   Participant.............................................................................................5
   1.25   Participating Company...................................................................................5
   1.26   Pension Plan............................................................................................5
   1.27   Plan....................................................................................................5
   1.28   Plan Sponsor............................................................................................5
   1.29   Plan Year...............................................................................................5
   1.30   Section 401(a)(17) Limitation...........................................................................5
   1.31   Section 415 Limitation..................................................................................5
   1.32   Spouse..................................................................................................5
   1.33   Termination of Employment...............................................................................5
   1.34   Unlimited Benefit Assumptions...........................................................................5
   1.35   Unlimited Early Retirement Benefit......................................................................6
   1.36   Unlimited Normal Retirement Benefit.....................................................................6
   1.37   Unlimited Separation from Service Benefit...............................................................6

ARTICLE II - EXCESS RETIREMENT BENEFITS...........................................................................6

   2.1   Excess Retirement Benefit................................................................................6
   2.2   Reemployment.............................................................................................7

ARTICLE III - VESTING OF EXCESS RETIREMENT BENEFITS...............................................................7

   3.1   Full Vesting.............................................................................................7
   3.2   Forfeitures..............................................................................................7

ARTICLE IV- FORM OF PAYMENT OF EXCESS RETIREMENT BENEFITS.........................................................7

   4.1   Payment of Excess Retirement Benefit.....................................................................7
   4.2   Form of Payment..........................................................................................7
   4.3   Change of Control during Employment......................................................................7
   4.4   Change of Control During Retirement......................................................................8
   4.5   Failure to Assume Plan upon Change of Control............................................................8
   4.6   Actuarial Equivalent.....................................................................................8

ARTICLE V- DEATH BENEFIT..........................................................................................8

   5.1   Death Benefit............................................................................................8
   5.2   Simultaneous Death.......................................................................................8

ARTICLE VI- ADMINISTRATION OF THE PLAN............................................................................9

   6.1   Administrator............................................................................................9
   6.2   Committee Action.........................................................................................9
   6.3   Powers of Administrator..................................................................................9
   6.4   Decisions of Administrator..............................................................................10
   6.5   Administrative Expenses.................................................................................10
   6.6   Eligibility to Participate..............................................................................10
   6.7   Insurance and Indemnification for Liability.............................................................10
   6.8   Agent for Service of Legal Process......................................................................10
   6.9   Delegation of Responsibility............................................................................10
   6.10   Claims Procedure.......................................................................................11

ARTICLE VII- MISCELLANEOUS.......................................................................................12

   7.1   Funding.................................................................................................12
   7.2   Amendment or Termination................................................................................12
   7.3   Status of Employment....................................................................................12
   7.4   Payments to Minors and Incompetents.....................................................................13
   7.5   Inalienability of Benefits..............................................................................13
   7.6   Governing Law...........................................................................................13
   7.7   Severability............................................................................................13
   7.8   Required Information to Administrator...................................................................13
   7.9   Income and Payroll Tax Withholding......................................................................13
   7.10   Application of Plan....................................................................................14
   7.11   No Effect on Other Benefits............................................................................14
   7.12   Inurement..............................................................................................14
   7.13   Notice.................................................................................................14
   7.14   Captions...............................................................................................14
   7.15   Acceleration of Payments...............................................................................14
   7.16   Reporting and Disclosure Requirements..................................................................14
   7.17   Gender and Number......................................................................................15

ARTICLE VIII- ADOPTION BY AFFILIATED EMPLOYERS...................................................................15

   8.1   Adoption of Plan........................................................................................15
   8.2   Withdrawal from Plan....................................................................................15
   8.3   Application of Withdrawal Provisions....................................................................15
   8.4   Plan Sponsor Appointed Agent of Participating Companies.................................................15

APPENDIX A - LIST OF PARTICIPATING COMPANIES.....................................................................16


PLAN EXHIBIT A - PLAN ADOPTION AGREEMENT.........................................................................17


PLAN ADOPTION AGREEMENT - PENNSYLVANIA MANUFACTURERS' ASSOCIATION INSURANCE COMPANY


PLAN ADOPTION AGREEMENT - PMA CAPITAL INSURANCE COMPANY


PLAN ADOPTION AGREEMENT - CALIBER ONE INDEMNITY COMPANY


PLAN ADOPTION AGREEMENT - CALIBER ONE MANAGEMENT COMPANY, INC.


PLAN ADOPTION AGREEMENT - PMA MANAGEMENT CORP.


PLAN ADOPTION AGREEMENT - PMA RE MANAGEMENT COMPANY`

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PMA CAPITAL
CORPORATIONSUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (AS AMENDED AND RESTATED EFFECTIVE
JANUARY 1, 2000)

WHEREAS,
Sections 401(a)(17) and 415 of the Internal Revenue Code of 1986, as amended, place
limitations (the Sections 401(a)(17) and 415 Limitations) on the retirement
benefits which can be paid to participants in the PMA Capital Corporation Pension Plan
(formerly known as The PMC Pension Plan) (the Pension Plan); and

WHEREAS,
some executives hired in mid-career by PMA Capital Corporation (formerly known as the
Pennsylvania Manufacturers Corporation) (the Plan Sponsor) are not able to be
credited with the maximum number of years of Benefit Service allowable under the Pension
Plan (Short Service Reduction); and

WHEREAS,
the Plan Sponsor established the PMA Capital Corporation Supplemental Executive
Retirement Plan(formerly known as The PMC Supplemental Executive Retirement Plan)
(the Plan) to provide supplemental executive retirement benefits for the
purposes of offsetting the Sections 401(a)(17) and 415 Limitations and the Short Service
Reduction to a select group of management and highly compensated employees within the
meaning of Section 201(2) of the Employee Retirement Income Security Act of 1974, as
amended (ERISA); and

WHEREAS,
the Plan Sponsor established a separate plan, the PMA Capital Corporation Executive
Management Pension Plan, effective January 1, 1999, to provide to a select group of
management and highly compensated employees within the meaning of Section 201(2) of ERISA
the Short Service Reduction benefits previously provided under the Plan; and

WHEREAS,
the Plan Sponsor now desires to amend and restate the Plan to, among other things, provide
that the termination of a Plan participants employment with a Participating Company
will not constitute a termination of employment for purposes of the Plan if the
participant is immediately thereafter employed by PMA Foundation or one of its affiliates;

NOW
THEREFORE, the Plan Sponsor does hereby amend and restate the Plan, as of January 1,
2000, as hereinafter set forth.

ARTICLE I
- DEFINITIONS

The
following words and phrases shall have the following meanings unless a different meaning
is plainly required by the context:

1.1
Actuarial Equivalent. An amount or benefit of equivalent present value to the amount or
benefit which otherwise would have been provided to, or on account of, a Participant
determined on the basis of the actuarial assumptions then in effect under the Pension
Plan.

1.2
Administrator. The committee (hereinafter referred to as Committee) appointed
by the President of the Plan Sponsor to serve as the Administrator of the Plan. If no
such Committee is appointed, the Plan Sponsor shall be the Administrator of the Plan.

1.3
Affiliated Employer. A member of a group of employers, of which the Plan Sponsor
is a member and which group constitutes:

| | (a)
A controlled group of corporations (as defined in Section 414(b) of the Code);
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| | (b)
Trades or businesses (whether or not incorporated) which are under common control (as
defined in Section 414(c) of the Code);
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| | (c)
Trades or businesses (whether or not incorporated) which constitute an affiliated service
group (as defined in Section 414(m) of the Code); or
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| | (d)
Any other entity required to be aggregated with the Plan Sponsor pursuant to Section
414(o) of the Code and the Treasury regulations thereunder.
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1.4
Board of Directors. The Board of Directors of the Plan Sponsor, as from time to time
constituted, or any committee thereof which is authorized to act on behalf of the Board
of Directors.

1.5
Cause. Termination by a Participating Company of employment with the Participating
Company for Cause shall mean termination upon the willful engaging by the
Participant in misconduct which is materially injurious to the Participating Company or
any Affiliated Employer. No act, or failure to act, on the Participants part shall
be considered willful unless done, or omitted to be done, by the Participant
not in good faith and without reasonable belief that such action or omission was in the
best interest of the Participating Company or its Affiliated Employers. Notwithstanding
the foregoing, a Participant shall not be deemed to have been terminated for Cause unless
and until there shall have been delivered to the Participant a copy of a written
determination by the Administrator (after reasonable notice to the Participant and an
opportunity for the Participant, together with the Participants counsel, to be
heard before the Administrator), finding that in the good faith opinion of the
Administrator the Participant was guilty of misconduct as set forth above in this Section
and specifying the particulars thereof in detail. If the Administrator consists of more
than one individual, the Administrators determination shall be made by written
resolution duly adopted by the affirmative vote of a majority of the entire membership of
the Administrator at a meeting of the Administrator called and held for the purpose
(after reasonable notice to the Participant and an opportunity for the Participant,
together with the Participants counsel, to be heard before the Administrator),
finding that in the good faith opinion of the Administrator the Participant was guilty of
misconduct as set forth above in this Section and specifying the particulars thereof in
detail.

1.6
Change of Control. A change of control of the Plan Sponsor of a nature that would be
required to be reported in response to Item 6(e) of Schedule 14A promulgated under the
Securities Exchange Act of 1934, as amended (the Exchange Act), or Item 1(a)
of a Current Report on Form 8-K or any successor rule, whether or not the Plan Sponsor is
then subject to such reporting requirements; provided that, without limitation, such a
Change of Control shall be deemed to occur if:

| | (a)
Any person (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act) is or first becomes the beneficial owner (as determined for purposes of
Regulation 13D-G under the Exchange Act as currently in effect), directly or indirectly,
in a transaction or series of transactions, of securities of the Plan Sponsor
representing more than 50% of the voting power of the Plan Sponsors voting capital
stock (the Voting Stock); or
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| | (b)
The consummation of a merger, or other business combination after which the holders of
the Voting Stock do not collectively own 50% or more of the voting capital stock of the
entity surviving such merger or other business combination, or the sale, lease, exchange
or other transfer in a transaction or series of transactions of all or substantially all
of the assets of the Plan Sponsor; or
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| | (c)
At any time individuals who were either nominated for election by the Plan Sponsors
Board of Directors or were elected by the Plan Sponsors Board of Directors cease
for any reason to constitute at least a majority of the Plan Sponsors Board of
Directors.
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1.7
Code. Internal Revenue Code of 1986, as amended. Reference to a specific Section of the
Code shall include such Section, any valid regulation promulgated thereunder, and any
comparable provision of any future legislation amending, supplementing or superseding
such section.

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1.8
Effective Date. As amended and restated herein, January 1, 2000. The original effective
date was January 1, 1993.

1.9
Early Retirement Date. A Participant's Early Retirement Date under the Pension Plan.

1.10
Eligible Officer. Any officer of a Participating Company who is:

| | (a)
Engaged in rendering personal services under the direction or control of the
Participating Company on or after January 1, 1998; and
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| | (b)
A Participant in the Pension Plan.
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1.11
Excess Retirement Benefit. A Participants excess retirement benefit under this Plan
determined in accordance with Section 2.1 hereof.

1.12
Good Reason. For purposes of this Plan, Good Reason shall mean any of the
following events which occurs, following a Change of Control, without the Participants
express written consent:

| | (a)
The assignment to the Participant of any duties materially inconsistent with the
Participants status, position, duties, and responsibilities with the Participating
Company immediately prior to such Change of Control or a substantial alteration in the
nature or status of the Participants responsibilities from those in effect
immediately prior to such Change of Control;
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| | (b)
A reduction by the Participating Company in the Participants annual base salary as
in effect on the Effective Date or thereafter, as the same may be increased from time to
time, except for across-the-board salary reductions similarly affecting all executives of
the Participating Company and of any organization in control of the Participating Company;
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| | (c)
The Participating Companys requiring the Participant to be based anywhere other
than the Participants office prior to the Change of Control, except for required
travel on the Participating Companys business to an extent substantially consistent
with the Participants prior travel obligations;
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| | (d)
The failure by the Participating Company to continue in effect any compensation plan of
the Participating Company in which the Participant participates, unless an equitable
arrangement (embodied in an ongoing substitute or alternative plan) has been made with
respect to such plan in connection with such Change of Control, or the failure by the
Participating Company to continue the Participants participation therein;
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| | (e)
The failure by the Participating Company to continue to provide the Participant with
benefits substantially similar to those provided under the Plan Sponsors 401(k)
Plan or any of the pension, life insurance, medical, health and accident, or disability
plans of the Participating Company in which the Participant was participating at the time
of such Change of Control, or the taking of any action by the Participating Company which
would directly or indirectly materially reduce any of such benefits or deprive the
Participant of any material fringe benefit enjoyed by the Participant at the time of such
Change of Control, or the failure by the Participating Company or its subsidiaries to
provide the number of paid vacation days to which the Participant was entitled on the
basis of years of service with the Participating Company in accordance with the normal
vacation policy of the Participating Company as in effect at the time of such Change of
Control;
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| | (f)
Any purported termination of a Participants employment which is not effected
pursuant to a written notice setting forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Participants
employment; and for purposes of this Plan, no such purported termination shall be
effective.
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1.13
Grandfathered Early Retirement Benefit. The amount determined using the formula in the
Pension Plan, as in effect before June 1, 1999, but after December 31, 1992, for
determining the benefit thereunder on or after a Participants retirement on or
after his/her Early Retirement Date (as defined in Article I of the Pension Plan) but
before his/her Normal Retirement Date (as defined in Article I of the Pension Plan).

1.14
Grandfathered Normal Retirement Benefit. The amount determined using the formula in the
Pension Plan, as in effect before June 1, 1999, but after December 31, 1992, for
determining the benefit thereunder upon a Participants retirement on or after
his/her Normal Retirement Date (as defined in Article I of the Pension Plan).

1.15
Grandfathered Separation from Service Benefit.The amount determined using the formula in
the Pension Plan, as in effect before June 1, 1999, for determining the benefit
thereunder upon a Participants separation from service before his/her Early
Retirement Date (as defined in Article I of the Pension Plan).

1.16
Limited Benefit Assumptions. The Limited Benefit Assumptions are that Compensation (as
defined in Article I of the Pension Plan) is subject to the Section 401(a)(17) Limitation
and the annual benefit is subject to the Section 415 Limitation.

1.17
Limited Early Retirement Benefit. The greater of:

| | (a)
The Grandfathered Early Retirement Benefit determined using the Limited Benefit
Assumptions; or
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| | (b)
The New Early Retirement Benefit determined using the Limited Benefit Assumptions.
| | --------------------------------------------------------------------------------------

1.18
Limited Normal Retirement Benefit. The greater of:

| | (a)
The Grandfathered Normal Retirement Benefit determined using the Limited Benefit
Assumptions; or
| | ----------------------------------------------------------------------------------------------------

| | (b)
The New Normal Retirement Benefit determined using the Limited Benefit Assumptions.
| | ---------------------------------------------------------------------------------------

1.19
Limited Separation from Service Benefit. The greater of:

| | (a)
 The Grandfathered Separation from Service Benefit determined using the Limited Benefit
Assumptions; or
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| | (b)
 The New Separation from Service Benefit determined using the Limited Benefit Assumptions.
| | ----------------------------------------------------------------------------------------------

1.20
New Early Retirement Benefit. The amount determined using the formula in the Pension
Plan, as in effect on and after June 1, 1999, for determining the benefit thereunder upon
a Participants retirement on or after his/her Early Retirement Date (as defined in
Article I of the Pension Plan) but before his/her Normal Retirement Date (as defined in
Article I of the Pension Plan).

1.21
New Normal Retirement Benefit. The amount determined using the formula in the Pension
Plan, as in effect on and after June 1, 1999, for determining the benefit thereunder upon
a Participants retirement on or after his/her Normal Retirement Date (as defined in
Article I of the Pension Plan).

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1.22
New Separation from Service Benefit. The amount determined using the formula in the
Pension Plan, as in effect on and after June 1, 1999, for determining the benefit
thereunder upon a Participants separation from service before his/her Early
Retirement Date (as defined in Article I of the Pension Plan).

1.23
Normal Retirement Date. A Participant's Normal Retirement Date under the Pension
Plan.

1.24
Participant. An Eligible Officer or a former Eligible Officer who is accruing,
or who has accrued, benefits under this Plan.

1.25
Participating Company. The Plan Sponsor and each of its Affiliated Employers which, upon
the approval of the Board of Directors, has agreed to participate in this Plan in
accordance with the provisions of Article VIII. Each Participating Company is listed on
Appendix A.

1.26
Pension Plan. The PMA Capital Corporation Pension Plan as in effect on the Effective Date
and as such plan may be further amended and/or restated from time to time and each
successor or replacement tax-qualified pension plan. In addition, the Pension Plan shall
also include such other retirement plans of the Plan Sponsor or of such other affiliates,
subsidiaries or divisions of the Plan Sponsor as the Administrator may expressly include
from time to time.

1.27
Plan. The PMA Capital Corporation Supplemental Executive Retirement Plan, as set forth
herein and as it may be amended and/or restated from time to time.

1.28
Plan Sponsor. PMA Capital Corporation, a Pennsylvania corporation.

1.29
Plan Year. Each calendar year beginning on January 1 and ending on the following
December 31.

1.30
Section 401(a)(17) Limitation. The limitation on compensation taken into account under
the Pension Plan pursuant to Section 401(a)(17) of the Code.

1.31
Section 415 Limitation. The limitation on benefits payable from the Pension Plan
imposed by Section 415 of the Code.

1.32
Spouse. A person who is married to a Participant and who is recognized as the
Participant's Spouse for purposes of the Pension Plan.

1.33
Termination of Employment. A termination of the employer  employee relationship
under circumstances which give rise to a Separation from Service under the
Pension Plan or if the Participant terminates employment with the Participating Companies
and immediately thereafter becomes an employee of PMA Foundation or of one of its
affiliates, a termination of the employer-employee relationship under circumstances which
give rise to a Separation from Service under the PMA Foundation Pension Plan.
For purposes of the Plan, a Participants termination of employment with the
Participating Companies and his/her immediate employment by PMA Foundation or by one of
its affiliates shall not constitute a Termination of Employment or a Separation
from Service under the Pension Plan.

1.34
Unlimited Benefit Assumptions. The Unlimited Benefit Assumptions are:

| | (a)
The Participant shall be deemed to receive Compensation (as such term is defined in
Article I of the Pension Plan) without taking into account the Section 401(a)(17)
Limitation and without taking into account any salary reduction contributions by such
Participant to the PMA Capital Corporation 401(k) Excess Plan or to the PMA Capital
Corporation Executive Deferred Compensation Plan; and
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| | (b)
The Section 415 Limitations contained in Article XI of the Pension Plan shall not be
taken into account.
| | ------------------------------------------------------------------------------------------------------------

1.35
Unlimited Early Retirement Benefit. The greater of:

| | (a)
The Grandfathered Early Retirement Benefit determined using the Unlimited Benefit
Assumptions; or
| | -----------------------------------------------------------------------------------------------------

| | (b)
The New Early Retirement Benefit determined using the Unlimited Benefit Assumptions.
| | ----------------------------------------------------------------------------------------

1.36
Unlimited Normal Retirement Benefit. The greater of:

| | (a)
 The Grandfathered Normal Retirement Benefit determined using the Unlimited Benefit
Assumptions; or
| | -------------------------------------------------------------------------------------------------------

| | (b)
 The New Normal Retirement Benefit determined using the Unlimited Benefit Assumptions.
| | ------------------------------------------------------------------------------------------

1.37
Unlimited Separation from Service Benefit. The greater of:

| | (a)
 The Grandfathered Separation from Service Benefit determined using the Unlimited Benefit
Assumptions; or
| | -------------------------------------------------------------------------------------------------------------

| | (b)
 The New Separation from Service Benefit determined using the Unlimited Benefit
Assumptions.
| | ------------------------------------------------------------------------------------------------

ARTICLE II - EXCESS
RETIREMENT BENEFITS

2.1
Excess Retirement Benefit. Subject to Sections 2.2 and 7.2 hereof, the Excess
Retirement Benefit of a Participant who is an Eligible Officer shall be determined as
follows:

| | (a)
Normal Retirement Benefit. A Participants Excess
          Retirement Benefit at his or her Normal Retirement Date shall be the benefit
          equal to:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (1)
          The Participants Unlimited Normal Retirement Benefit, less
| | -------------------------------------------------------------------------

| | (2)
          The Participants Limited Normal Retirement Benefit.
| | ------------------------------------------------------------------

| | (b)
Early Retirement Benefit. A Participants Excess
          Retirement Benefit at his or her Early Retirement Date shall be the benefit
          equal to:
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (1)
          The Participants Unlimited Early Retirement Benefit, less
| | ------------------------------------------------------------------------

| | (2)
          The Participants Limited Early Retirement Benefit.
| | -----------------------------------------------------------------

| | (c)
Separation from Service Benefit. A Participants
          Excess Retirement Benefit on his or her Termination of Employment date shall be
          the benefit equal to:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (1)
          The Participants Unlimited Separation from Service Benefit, less
| | -------------------------------------------------------------------------------

| | (2)
          The Participants Limited Separation from Service Benefit.
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2.2
Reemployment. If a Participant whose employment with the Participating Company was
terminated at a time when such Participant had an Excess Retirement Benefit and whose
benefit had commenced to be paid under this Plan becomes reemployed by the Participating
Company, payment of such Excess Retirement Benefit shall be suspended until such
individual again ceases to be employed by the Participating Company. Thereupon, payment
of such Excess Retirement Benefit shall recommence, but after taking into account any
additional Benefit Service (as such term is defined in Article I of the Pension Plan)
earned during such period of reemployment.

ARTICLE III - VESTING OF
EXCESS RETIREMENT BENEFITS

3.1
Full Vesting. Except as otherwise provided in this Section 3.1 and in Section 7.2 hereof,
a Participant shall have a fully (100%) vested and nonforfeitable interest in his/her
Excess Retirement Benefit, if any, once he/she has satisfied the requirements for a fully
vested and nonforfeitable benefit under the Pension Plan. Notwithstanding the foregoing,
a Participant shall forfeit his/her vested interest, if any, in his/her Excess Retirement
Benefit if his/her employment is terminated for Cause.

3.2
Forfeitures. Any amount forfeited hereunder by a Participant who has not become vested in
a Excess Retirement Benefit under this Plan shall constitute a reduction of the
Participating Companys liability under the Plan and shall not be allocated to the
remaining Participants.

ARTICLE IV - FORM OF
PAYMENT OF EXCESS RETIREMENT BENEFITS

4.1
Payment of Excess Retirement Benefit. Except as otherwise provided in Sections 4.3 and
7.2 hereof, a Participants vested Excess Retirement Benefit, if any, shall commence
to be paid at the time retirement income payments commence being made to the Participant
under the Pension Plan.

4.2
Form of Payment. The normal form of payment of a Participants Excess Retirement
Benefit shall be the same as that provided under the Pension Plan. Subject to Section 4.5
hereof, a Participants Excess Retirement Benefit shall be paid, however, in the
same form which the Participant has elected, or is deemed to have elected, pursuant to
the Pension Plan. The Participants election under the Pension Plan (with the valid
consent of his/her Spouse where required under the Pension Plan) shall also be applicable
to the payment of his/her Excess Retirement Benefit. Notwithstanding the foregoing, any
Participant who elects a Social Security level income option to augment his/her benefit
under the Pension Plan on account of his/her retirement before he/she is eligible for
retirement benefits under the Federal Social Security system (as such optional form is
described in Section 7.2 of the Pension Plan) shall receive his/her Excess Retirement
Benefit in the form of a single life annuity. The Administrator shall have the sole and
absolute discretion and authority to approve or reject a Participants request for a
different method of payment than specified herein.

4.3
Change of Control during Employment. Upon a Change of Control, or within two years
thereafter, regardless of whether or not the Plan has been terminated during such period,
if the Participating Company (or any successor corporation) shall terminate the
Participants employment for other than Cause, or if the Participant shall terminate
employment for Good Reason or retirement, death, or total disability (as defined in the
Pension Plan), then the Participant shall become eligible for, and entitled to receive,
the Participants Excess Retirement Benefit determined as of the date Participants
employment terminated, i.e., if the termination date is on or after the Normal Retirement
Date then the Excess Retirement Benefit will be determined under Section 2.1(a), if the
termination date is on or after the Early Retirement Date but before the Normal
Retirement Date, then under Section 2.1(b) and if prior to the Early Retirement Date,
then under Section 2.1(c). The Participants Excess Retirement Benefit under this
provision shall be paid to the Participant in a lump sum upon such termination of
employment by the Participating Company (or any successor corporation) in cash within
ninety days following the date of termination. Such amount will be calculated as the
Actuarial Equivalent of the Participants Excess Retirement Benefit using the
assumptions for determining Actuarial Equivalence provided under the Pension Plan for
determining lump sum distributions. Any Participant who remains employed by the
Participating Company (or any successor corporation) for two or more years after a Change
of Control shall receive the Excess Retirement Benefit in accordance with Sections 4.1
and 4.2 hereof.

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4.4
Change of Control During Retirement. In the event of a Change of Control of the Plan
Sponsor, any Participant who has previously retired from the Participating Company and is
receiving payment of the Participants Excess Retirement Benefit shall receive,
within ninety days following such Change of Control, a single payment in cash which is
the Actuarial Equivalent of the Participants remaining benefit under this Plan
using the assumptions for determining Actuarial Equivalence provided under the Pension
Plan for determining lump sum distributions.

4.5
Failure to Assume Plan upon Change of Control. In the event the Plan is not assumed by a
successor upon a Change of Control of the Plan Sponsor, then all Participants shall
become eligible for, and entitled to receive, their Excess Retirement Benefit determined
in the manner described in Section 4.3. Such Excess Retirement Benefit shall be paid out
in a lump sum upon such failure to assume the Plan. Such benefit shall be paid by the
Participating Company (or any successor corporation) to the Participant in a lump sum, in
cash, within ninety days following the date of the failure to assume the Plan. Such
amount will be calculated as the Actuarial Equivalent of the Participants Excess
Retirement Benefit using the assumptions for determining Actuarial Equivalence provided
under the Pension Plan for determining lump sum distributions.

4.6
Actuarial Equivalent. An Excess Retirement Benefit which is payable in any form other
than the normal form under the Pension Plan, i.e., a straight life annuity over the
lifetime of the Participant, or which commences at any time prior to the Participants
Normal Retirement Date, shall be the Actuarial Equivalent of the Excess Retirement
Benefit payable hereunder using the assumptions for determining Actuarial Equivalence
provided under the Pension Plan for making a comparable determination.

ARTICLE V - DEATH BENEFIT

5.1
Death Benefit. Except as otherwise provided herein, a death benefit shall be
payable:

| | (a)
To the surviving Spouse of a Participant who dies before commencement of his/her Excess
Retirement Benefit, if the Spouse is entitled to a qualified pre-retirement survivor
annuity under Section 6.1 of the Pension Plan. The amount of the death benefit hereunder
shall be based on the amount of the Participants Excess Retirement Benefit
determined using the date of death as the date of retirement or separation from service
and calculated using the rules contained in Section 6.1 of the Pension Plan. The death
benefit shall be administered and distributed in accordance with the provisions of
Sections 6.1 and 6.2 of the Pension Plan.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)
In the event of a Change of Control of the Plan Sponsor, any surviving Spouse who is
receiving payment of a death benefit pursuant to this Section 5.1 shall receive a single
lump sum payment which is the Actuarial Equivalent of the surviving Spouses
remaining death benefit. Such benefit shall be paid by the Participating Company (or any
successor corporation) to the surviving Spouse within ninety days following the date of
the Change of Control.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5.2
Simultaneous Death. In the event of the simultaneous death of a Participant eligible for
a death benefit under this Article V and his/her Spouse so that it is not possible to
determine which one was the survivor, it shall be presumed for purposes of this Article V
that the Spouse predeceased the Participant.

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ARTICLE VI - ADMINISTRATION
OF THE PLAN

6.1
Administrator. The Committee appointed by the President of the Plan Sponsor is hereby
designated as the administrator of the Plan (within the meaning of Section 3(16)(A) of
ERISA). If no Committee is appointed by the Plan Sponsor as the Administrator, the Plan
Sponsor shall be the Administrator of the Plan. The Administrator shall have the
authority to control and manage the operation and administration of the Plan as the named
fiduciary under Section 402(a)(1) of ERISA. The President of the Plan Sponsor may appoint
another person to be the Administrator at any time. The President of the Plan Sponsor may
also remove a Administrator and fill any vacancy which may arise.

6.2
Committee Action. If a Committee is appointed as Administrator, the following rules
apply:

| | (a)
On all matters within the jurisdiction of the Committee, the decision of a majority of
the members of the Committee shall govern and control. The Committee may take action
either at a meeting or in writing without a meeting, provided that in the latter instance
all members of the Committee shall have been advised of the action contemplated and that
the written instrument evidencing the action shall be signed by a majority of the members.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)
The President of the Plan Sponsor shall appoint the Chair of the Committee. The Committee
may appoint, either from among its members or otherwise, a secretary who shall keep a
record of all meetings and actions taken by the Committee. Either the Chair of the
Committee or any member of the Committee designated by the Chair shall execute any
certificate, instrument or other written direction on behalf of the Committee. Any action
taken on matters within the discretion of the Committee shall be final and conclusive as
to the parties thereto and as to all Participants or beneficiaries claiming any right
under the Plan.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6.3
Powers of Administrator. The Administrator shall have all powers necessary to supervise
the administration of the Plan and to control its operation in accordance with its terms,
including, but not by way of limitation, the following powers:

| | (a)
Appoint, retain, and terminate such persons as it deems necessary or advisable to assist
in the administration of the Plan or to render advice with respect to the
responsibilities of the Administrator under the Plan, including accountants, actuaries,
administrators, attorneys and physicians.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)
Make use of the services of the employees of the Participating Company in administrative
matters.
| | -----------------------------------------------------------------------------------------------------

| | (c)
Obtain and act on the basis of all tables, valuations, certificates, opinions, and
reports furnished by the persons described in paragraph (a) or (b) above. Any
determination of Actuarially Equivalent benefits by the actuary selected by the
Administrator shall be conclusive and binding on the Participating Company, the
Administrator and all Participants.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (d)
Review the manner in which benefit claims and other aspects of the Plan administration
have been handled by the employees of the Participating Company.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------

| | (e)
Determine all benefits and resolve all questions pertaining to the administration and
interpretation of the Plan provisions, either by rules of general applicability or by
particular decisions. To the maximum extent permitted by law, all interpretations of the
Plan and other decisions of the Administrator shall be conclusive and binding on all
parties.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | (f)
Adopt such forms, rules and regulations as it shall deem necessary or appropriate for the
administration of the Plan and the conduct of its affairs, provided that any such forms,
rules and regulations shall not be inconsistent with the provisions of the Plan.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (g)
Remedy any inequity from incorrect information received or communicated or from
administrative error.
| | ---------------------------------------------------------------------------------------------------------

| | (h)
Commence or defend any litigation arising from the operation of the Plan in any legal or
administrative proceeding.
| | -----------------------------------------------------------------------------------------------------------------------

| | (i)
To determine all considerations affecting the eligibility of any Employee to become a
Participant or remain a Participant in the Plan;
| | ------------------------------------------------------------------------------------------------------------------------------------------

| | (j)
To determine the status and rights of Participants and their Spouses, beneficiaries or
estates;
| | ---------------------------------------------------------------------------------------------------

6.4
Decisions of Administrator. All decisions of the Administrator, and any action taken by
it in respect of the Plan and within the powers granted to it under the Plan, shall be
conclusive and binding on all persons, subject to the claims and appeal procedure
described in Section 6.10 hereof.

6.5
Administrative Expenses. All expenses incident to the operation and administration of the
Plan reasonably incurred, including, without limitation by way of specification, the fees
and expenses of attorneys and advisors, and for such other professional, technical and
clerical assistance as may be required, shall be paid by the Participating Company.

6.6
Eligibility to Participate. No member of the Administrator who is also an Eligible
Officer shall be precluded from participating in the Plan if otherwise eligible, but he
or she shall not be entitled, as a member of the Administrator, to act or pass upon any
matters pertaining specifically to his or her own benefit under the Plan.

6.7
Insurance and Indemnification for Liability. The rules relating to the insurance and
indemnification for liability are as follows:

| | (a)
Insurance. The Plan Sponsor may, in its discretion, obtain, pay for, and keep current a
policy or policies or insurance, insuring members of the Administrator and other
employees to whom any fiduciary responsibility with respect to administration of the Plan
has been delegated against any and all liabilities, costs and expenses incurred by such
persons as a result of any act, or omission to act, in connection with the performance of
their duties, responsibilities and obligations under the Plan and any applicable Federal
or state law.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)
Indemnity. If the Plan Sponsor does not obtain, pay for, and keep current the type of
insurance policy or policies referred to in Section 6.7(a) above, or if such insurance is
provided but any of the members of the Administrator or other employees referred to in
Section 6.7(a) above incur any costs or expenses which are not covered under such
policies, then, in either event, the Plan Sponsor shall, to the extent permitted by law,
indemnify and hold harmless such parties against any and all costs, expenses and
liabilities incurred by such parties in performing their duties and responsibilities
under this Plan, provided such party or parties were acting in good faith within what was
reasonably believed to have been in the best interests of the Plan and its Participants.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6.8
Agent for Service of Legal Process. The Administrator shall be the designated agent for
the service of legal process with respect to any matter concerning the Plan.

6.9
Delegation of Responsibility. The Administrator may designate a committee of one or more
persons to carry out any of the responsibilities or functions assigned or allocated to
the Administrator under the Plan. Each reference to the Administrator in this Plan shall
include the Administrator as well as any person to whom the Administrator may have
delegated the performance of a particular function or responsibility under this Section
6.9.

-10-

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6.10
Claims Procedure.

| | (a)
Claim for Benefits. All claims for benefits under the Plan shall be made in writing and
shall be signed by the applicant. Claims shall be submitted to a representative
designated by the Administrator and hereinafter referred to as the Claims
Coordinator.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Each
claim hereunder shall be acted on and approved or disapproved by the Claims Coordinator
within 60 days following the receipt by the Claims Coordinator of the information
necessary to process the claim.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
the event the Claims Coordinator denies a claim for benefits, in whole or in part, the
Claims Coordinator shall notify the applicant in writing of the denial of the claim and
notify such applicant of his or her right to a review of the Claims Coordinators
decision by the Administrator. Such notice by the Claims Coordinator shall also set
forth, in a manner calculated to be understood by the applicant, the specific reason for
such denial, the specific Plan provisions on which the denial is based, a description of
any additional material or information necessary to perfect the claim, with an
explanation of why such material or information is necessary, and an explanation of the
Plans claims review procedure as set forth in this Section 6.10.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | If
no action is taken by the Claims Coordinator on an applicants claim within 60 days
after receipt by the Claim Coordinator, such application shall be deemed to be denied for
purposes of the following appeals procedure.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)
 Appeals Procedure. Any applicant whose claim for benefits is denied in whole or in
part (Claimant) may appeal from such denial to the Administrator for a review
of the decision by the Administrator. Such appeal must be made within six months after
the Claimant has received written notice of the denial as provided above in Section
6.10(a). An appeal must be submitted in writing within such period and must:
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (1)
  Request a review by the Administrator of the claim for benefits under the Plan;
| | -------------------------------------------------------------------------------------

| | (2)
  Set forth all of the grounds upon which the Claimants request for review is
based and any facts in support thereof; and
| | ------------------------------------------------------------------------------------------------------------------------------

| | (3)
  Set forth any issues or comments which the Claimant deems pertinent to the appeal.
| | ----------------------------------------------------------------------------------------

| | The
Administrator shall regularly review appeals by Claimants. The Administrator shall act
upon each appeal within 60 days after receipt thereof unless special circumstances
require an extension of the time for processing the Claimants request for review.
If such an extension of time for processing is required, written notice of the extension
shall be forwarded to the Claimant prior to the commencement of the extension. In no
event shall such extension exceed a period of 120 days after the request for review is
received by the Administrator.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Administrator shall make a full and fair review of each appeal and any written materials
submitted by the Claimant and/or the Participating Company in connection therewith. The
Administrator may require the Claimant and/or the Participating Company to submit such
additional facts, documents or other evidence as the Administrator in its discretion
deems necessary or advisable in making its review. The Claimant shall be given the
opportunity to review pertinent documents or materials upon submission of a written
request to the Administrator, provided the Administrator finds the requested documents or
materials are pertinent to the appeal.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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| | On
the basis of its review, the Administrator shall make an independent determination of the
Claimants eligibility for benefits under the Plan. The decision of the
Administrator on any claim for benefits shall be final and conclusive upon all parties
thereto.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
the event the Administrator denies an appeal, in whole or in part, the Administrator
shall give written notice of the decision to the Claimant, which notice shall set forth,
in a manner calculated to be understood by the Claimant, the specific reasons for such
denial and which shall make specific reference to the pertinent Plan provisions on which
the Administrators decision was based.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)
Compliance with Regulations. It is intended that the claims           procedure of this
Plan be administered in accordance with the claims procedure           regulations of the
Department of Labor set forth in 29 CFR § 2560.503-1.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE VII - MISCELLANEOUS

7.1
Funding. Nothing contained in this Plan and no action taken pursuant to this Plan will
create or be construed to create or require a funded arrangement or any kind of fiduciary
duty between the Participating Company and/or the Administrator and a Participant.
Benefits payable under this Plan shall be paid directly from the general assets of each
Participating Company. The Participating Company shall not be obligated to set aside,
earmark or escrow any funds or other assets to satisfy its obligations under this Plan.
The Participating Companys obligation hereunder will be an unfunded and unsecured
promise to make payments in the future. A Participant and his/her Spouse shall not have
any property interest, claim or legal or equitable right in or to any specific assets of
the Participating Company other than the unsecured right to receive payments from the
Participating Company as provided herein. To the extent any person acquires a right
hereunder, such right(s) will be no greater than those of a general, unsecured creditor
of the Participating Company.

7.2
Amendment or Termination.

| | (a)
The Board of Directors reserves the right to alter, amend or terminate the Plan, or any
part thereof, through the adoption of a written resolution; provided, however, that no
such action by the Board of Directors shall reduce a Participants Excess Retirement
Benefit accrued as of the time thereof and no such amendment or termination may occur as
a result of a Change of Control, within two years after a Change of Control, or as part
of any plan to effect a Change of Control. Each amendment shall be set forth in a written
instrument.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)
If the Plan is terminated, a determination shall be made of each Participants
Excess Retirement Benefit as of the Plan termination date. The amount of a Participants
benefit or benefits shall be payable to the Participant at the time it would have been
payable under Article IV hereof if the Plan had not been terminated. If a Participant
dies after termination of the Plan, but prior to his/her Termination of Employment,
his/her surviving Spouse shall receive a distribution of his/her death benefit,
determined in accordance with Article V hereof, but based on the Participants
Excess Retirement Benefit as of the Plan termination date.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7.3
Status of Employment. Neither the establishment or maintenance of the Plan, nor any
action of the Plan Sponsor or any Participating Company or the Administrator shall be
held or construed to confer upon any individual any right to be continued as an Employee
nor, upon dismissal, any right or interest in any assets of the Plan Sponsor or a
Participating Company nor to affect any Participants right to terminate his/her
employment at any time.

-12-

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7.4
Payments to Minors and Incompetents. If a Participant or surviving Spouse entitled to
receive any benefits hereunder is a minor or is deemed by the Administrator or is
adjudged to be legally incapable of giving a valid receipt and discharge for such
benefits, they will be paid to the duly appointed guardian of such minor or incompetent
or to such other legally appointed person as the Administrator may designate. Such
payment shall, to the extent made, be deemed a complete discharge of any liability for
such payment under the Plan.

7.5
Inalienability of Benefits.

| | (a)
Benefits payable under the Plan are not subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, charge, garnishment,
execution, or levy of any kind, whether voluntary or involuntary. Any attempt to
anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or otherwise
dispose of any right to benefits under the Plan shall be void. The Participating Company
shall not in any manner be liable for, or subject to, the debts, contracts, liabilities,
engagements or torts of any person entitled to benefits under the Plan.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)
Notwithstanding Section 7.5(a), if a Participant is indebted to the Participating Company
at any time when payments are to be made by the Participating Company to the Participant
under the provisions of the Plan, the Participating Company shall have the right to
reduce the amount of payment to be made to the Participant (or the Participants
surviving Spouse) to the extent of such indebtedness. Any election by the Participating
Company not to reduce such payment shall not constitute a waiver of its claim for such
indebtedness.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7.6
Governing Law. Except to the extent preempted by federal law, the Plan shall be governed
by and construed in accordance with the internal laws of the Commonwealth of Pennsylvania.

7.7
Severability. In case any provision of this Plan shall be held illegal or invalid for any
reason, such illegality or invalidity shall not affect the remaining provisions of the
Plan, and the Plan shall be construed and enforced as if such illegal and invalid
provisions had never been set forth.

7.8
Required Information to Administrator. Each Participant will furnish to the Administrator
such information as the Administrator considers necessary or desirable for purposes of
administering the Plan, and the provisions of the Plan respecting any payments thereunder
are conditional upon the Participants furnishing promptly such true, full and
complete information as the Administrator may request. The Administrator, in its sole
discretion, may request a Participant to submit proof of his/her age. The Administrator
will, if such proof of age is not submitted when requested, use as conclusive evidence
thereof such information as is deemed by it to be reliable, regardless of the lack of
proof. Any notice or information which, according to the terms of the Plan or the rules
of the Administrator, must be filed with the Administrator, shall be deemed so filed if
addressed and either delivered in person or mailed to and received by the Administrator
at the following address:

Plan Administrator
PMA Capital Corporation 
1735 Market Street, 27th Floor
Philadelphia, PA 19103

Failure
on the part of the Participant or Spouse to comply with any such request within a
reasonable period of time shall be sufficient grounds for delay in the payment of
benefits under the Plan until such information or proof is received by the Administrator.

7.9
Income and Payroll Tax Withholding. To the extent required by the laws in effect at the
time payments are made under this Plan, the Plan Sponsor shall withhold from such
deferred compensation payments any taxes required to be withheld for federal, state or
local tax purposes.

-13-

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7.10
Application of Plan. The Plan, as set forth herein, shall apply to any Participant
terminating employment on or after the Effective Date. The Plan, as in effect on a
Participants Termination of Employment date, shall apply to any such Participant
terminating employment before the Effective Date.

7.11
No Effect on Other Benefits. No amount credited under this Plan shall be deemed part of
the total compensation for the purpose of computing benefits to which a Participant may
be entitled under any pension plan or other supplemental compensation arrangement, unless
such plan or arrangement specifically provides to the contrary. The amounts payable to
the Participant hereunder will be in addition to any benefits paid or payable to the
Participant under any other pension, disability, annuity or retirement plan or policy
whatsoever. Nothing herein contained will in any manner modify, impair or affect any
existing or future rights of the Participant to participate in any other employee
benefits plan or receive benefits in accordance with such plan or to participate in any
current or future pension plan of a Participating Company or any supplemental arrangement
which constitutes a part of the Participating Companys regular compensation
structure.

7.12
Inurement. The Plan shall be binding upon and inure to the benefit of the Participating
Company and its successors and assigns, and the Participant and the Participants
beneficiaries, successors, heirs, executors and administrators.

7.13
Notice. Any notices or elections required or permitted to be given or made under this
Plan will be sufficient if in writing and if sent by first class, postage paid mail to
the Participants last known address as shown on the Participating Companys
personnel records or to the principal office of the Participating Company, as the case
may be. The date of such mailing shall be deemed the date of notice, consent or demand.
Either party may change the address to which notice is to be sent by giving notice of the
change of address in the manner aforesaid.

7.14
Captions. The captions contained in and the table of contents prefixed to the Plan are
inserted only as a matter of convenience and for ease of reference in no way define,
limit, enlarge or describe the scope or intent of this Plan or in any way affect the Plan
or the construction of any provision thereof.

7.15
Acceleration of Payments. Notwithstanding any other provision of the Plan, if the
Administrator determines, based on a change in the tax or revenue laws of the United
States of America, a published ruling or similar announcement issued by the Internal
Revenue Service, a regulation issued by the Secretary of the Treasury or his/her
delegate, a decision by a court of competent jurisdiction involving a Participant, or a
closing agreement involving a Participant made under Section 7121 of the Code that is
approved by the Commissioner, that such Participant or Spouse has recognized or will
recognize income for federal income tax purposes with respect to benefits that are or
will be payable to the Participant under the Plan before they otherwise would be paid to
the Participant or the Spouse (as applicable), upon the request of the Participant or
Spouse, the Administrator shall immediately make distribution to the Participant or
Spouse of the amount so taxable.

7.16
Reporting and Disclosure Requirements. In order to comply with the requirements
of Title I of ERISA, the Administrator shall:

| | (a)
File a statement with the Secretary of Labor that includes the name and address of the
employer, the employer identification number assigned by the Internal Revenue Service, a
declaration that the employer maintains the Plan primarily for the purpose of providing
deferred compensation for a select group of management or highly compensated employees
and a statement of the number of such plans and the number of employees in each; and
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)
Provide plan documents, if any, to the Secretary of Labor upon request as required by
Section 104(a)(1) of ERISA. It is intended that this provision comply with the
requirements of DOL Reg. § 2520.104-23.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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This
method of compliance is available to the Plan only so long as the Plan is maintained by
an employer primarily for the purpose of providing deferred compensation for a select
group of management or highly compensated employees and for which benefits are paid as
needed solely from the general assets of the employer or are provided exclusively through
insurance contracts or policies, the premiums for which are paid directly by the employer
from its general assets, issued by an insurance company or similar organization which is
qualified to do business in any State, or both.

7.17
Gender and Number. Whenever any words are used herein in any specific gender, they shall
be construed as though they were used in any other applicable gender. The singular form,
whenever used herein, shall mean or include the plural form where applicable and
viceversa.

ARTICLE VIII - ADOPTION BY
AFFILIATED EMPLOYERS

8.1
Adoption of Plan. The following rules shall apply with respect to the adoption of
the Plan:

| | (a)
Adoption by Affiliated Employers. The terms of this Plan may be adopted by any
Affiliated Employer, provided:
| | -----------------------------------------------------------------------------------------------------------------

| | (1)
The Board of Directors consents to such adoption by an appropriate written resolution;
| | ------------------------------------------------------------------------------------------

| | (2)
The board of directors of the Affiliated Employer adopts this Plan by an appropriate
written resolution which identifies the Eligible Officers;
| | ---------------------------------------------------------------------------------------------------------------------------------------------------

| | (3)
The Affiliated Employer executes a Plan Adoption Agreement in the form attached hereto as
Plan Exhibit A, applicable to the Eligible Officers of such Affiliated Employer. The
Affiliated Employer may elect in such Adoption Agreement to have special provisions apply
with respect to the Eligible Officers of the Affiliated Employer which differ from the
provisions of the Plan applicable to other Eligible Officers; and
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (4)
The Affiliated Employer executes such other documents as may be required to make such
Affiliated Employer a party to the Plan as a Participating Company.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)
Effect of Adoption. An Affiliated Employer that adopts the Plan is thereafter a
Participating Company with respect to its Eligible Officers.
| | ------------------------------------------------------------------------------------------------------------------------------------------------

8.2
Withdrawal from Plan. Any Participating Company may at any time withdraw from the Plan
upon giving the Board of Directors at least 30 days prior written notice of its intention
to withdraw.

8.3
Application of Withdrawal Provisions. The withdrawal provisions contained in Section 8.2
shall be applicable only if the withdrawing Participating Company continues to cover its
Participants under a plan similar to this Plan. Otherwise the termination provisions of
the Plan shall apply.

8.4
Plan Sponsor Appointed Agent of Participating Companies. As a condition precedent to the
adoption of the Plan, each participating Affiliated Employer appoints the Board of
Directors as its agent to exercise on its behalf all of the power and authority conferred
upon the Plan Sponsor by the Plan, including, without limitation, the power to amend or
to terminate the Plan.

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