PMA CAPITAL CORPORATION 
401(k) EXCESS PLAN 
(AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2000)

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TABLE OF CONTENTS

`TABLE OF CONTENTS
                                                                                                               Page

ARTICLE I - INTRODUCTION..........................................................................................1

   1.1   Introduction.............................................................................................1

ARTICLE II - DEFINITIONS..........................................................................................1

   2.1   Administrator............................................................................................1
   2.2   Affiliated Employer......................................................................................1
   2.3   Annual Distribution Period...............................................................................1
   2.4   Beneficiary..............................................................................................2
   2.5   Board of Directors.......................................................................................2
   2.6   Change of Control........................................................................................2
   2.7   Code.....................................................................................................2
   2.8   Compensation.............................................................................................2
   2.9   Deferred Compensation Plan...............................................................................2
   2.10  Determination Date.......................................................................................2
   2.11  Early Retirement Date....................................................................................2
   2.12  Eligible Employee........................................................................................2
   2.13  Employee Pre-Tax Contributions...........................................................................2
   2.14  Employee Pre-Tax Credits.................................................................................2
   2.15  Employer Matching Contributions..........................................................................3
   2.16  Employer Matching Credits................................................................................3
   2.17  Employment Termination Date..............................................................................3
   2.18  ERISA....................................................................................................3
   2.19  Excess 401(k) Plan Account...............................................................................3
   2.20  Excess Salary Reduction Agreement........................................................................3
   2.21  Normal Retirement Date...................................................................................3
   2.22  Participant..............................................................................................3
   2.23  Participating Company....................................................................................3
   2.24  Payroll Period...........................................................................................3
   2.25  Plan.....................................................................................................3
   2.26  Plan Sponsor.............................................................................................3
   2.27  Plan Year................................................................................................3
   2.28  Qualified Plan...........................................................................................3
   2.29  Restatement Effective Date...............................................................................4
   2.30  Total Disability.........................................................................................4
   2.31  Valuation Date...........................................................................................4
   2.32  Vanguard Funds...........................................................................................4

ARTICLE III - PARTICIPATION.......................................................................................4

   3.1   Eligibility to Participate...............................................................................4
   3.2   Procedure for and Effect of Admission....................................................................4

ARTICLE IV - CREDITS TO EXCESS 401(K) PLAN ACCOUNTS...............................................................4

   4.1   Establishment of Plan Accounts...........................................................................4
   4.2   Investment Obligation of the Plan Sponsor................................................................4
   4.3   Employee Pre-Tax Credit..................................................................................5
   4.4   Salary Reduction Agreement...............................................................................5
   4.5   Employer Matching Credits................................................................................5
   4.6   Allocation among Investment Options......................................................................5
   4.7   Administration of Investments............................................................................6
   4.8   Valuation of Excess 401(k) Plan Accounts.................................................................6

ARTICLE V - VESTING...............................................................................................6

   5.1   Immediate Vesting........................................................................................6

ARTICLE VI - PAYMENT OF BENEFITS..................................................................................6

   6.1   Benefit upon Termination of Employment...................................................................6
   6.2   Payment of Benefits at Retirement........................................................................6
   6.3   Payment of Benefits Following Death......................................................................7
   6.4   Earnings  where Installment Payments Are Made............................................................7
   6.5   Form of Payment..........................................................................................7
   6.6   Change of Control where Installment Payments Are Made....................................................7
   6.7   Reduced Benefit upon Request following a Change of Control...............................................7
   6.8   Total Disability.........................................................................................7

ARTICLE VII - ADMINISTRATION OF THE PLAN..........................................................................7

   7.1    Administrator...........................................................................................7
   7.2   Committee Action.........................................................................................8
   7.3   Powers and Duties of the Administrator...................................................................8
   7.4   Decisions of Administrator...............................................................................9
   7.5   Administrative Expenses..................................................................................9
   7.6   Eligibility to Participate...............................................................................9
   7.7   Insurance and Indemnification for Liability..............................................................9
   7.8   Agent for Service of Legal Process.......................................................................9
   7.9   Delegation of Responsibility.............................................................................9
   7.10  Claims Procedure.........................................................................................9

ARTICLE VIII - AMENDMENT AND TERMINATION.........................................................................11

   8.1   Amendment or Termination................................................................................11

ARTICLE IX - MISCELLANEOUS.......................................................................................11

   9.1   Funding.................................................................................................11
   9.2   Status of Employment....................................................................................11
   9.3   Payments to Minors and Incompetents.....................................................................11
   9.4   Inalienability of Benefits..............................................................................12
   9.5   Governing Law...........................................................................................12
   9.6   Severability............................................................................................12
   9.7   Required Information to Administrator...................................................................12
   9.8   Income and Payroll Tax Withholding......................................................................12
   9.9   Application of Plan.....................................................................................12
   9.10  No Effect on Other Benefits.............................................................................12
   9.11  Inurement...............................................................................................13
   9.12  Notice..................................................................................................13
   9.13  Captions................................................................................................13
   9.14  Acceleration of Payments................................................................................13
   9.15  Reporting and Disclosure Requirements...................................................................13
   9.16  Gender and Number.......................................................................................13

ARTICLE X - ADOPTION BY AFFILIATED EMPLOYERS.....................................................................14

   10.1  Adoption of Plan........................................................................................14
   10.2  Withdrawal from Plan....................................................................................14
   10.3  Application of Withdrawal Provisions....................................................................14
   10.4  Plan Sponsor Appointed Agent of Participating Companies.................................................14

APPENDIX A - INVESTMENT OPTIONS AVAILABLE FOR MEASUREMENT OF INVESTMENT EARNINGS OR LOSSES UNDER PLAN............15


APPENDIX B - 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 CORPORATION 401(k) EXCESS PLAN

ARTICLE I - INTRODUCTION

1.1
Introduction. PMA Capital Corporation(then known as the Pennsylvania Manufacturers Corporation) (the
Plan Sponsor) previously established the PMA Capital Corporation Executive
Deferred Compensation Plan(then known as the PMC Executive Deferred Compensation Plan)
(the Deferred Compensation Plan) to provide certain benefits in excess of the
benefit provided under the PMA Capital Corporation 401(k) Plan(then known as The PMC
401(k) Plan) (the Qualified Plan). The Plan Sponsor decided, effective
January 1, 1999, to provide certain benefits previously provided under the Deferred
Compensation Plan in a separate plan known as the PMA Capital Corporation 401(k) Excess
Plan(the Plan), and restated the Deferred Compensation Plan to, among other
things, reflect the removal from the Deferred Compensation Plan of those provisions set
forth herein.

The
Plan was established for the purpose of providing certain employees of the Plan Sponsor
and certain of its affiliated employers with certain benefits that would be provided
under the Qualified Plan but for the limitations imposed by Sections 401(k), 401(m), 415
and 401(a)(17) of the Internal Revenue Code of 1986, as amended. The Plan is intended to
be an unfunded arrangement, maintained primarily for the purpose of providing deferred
compensation for a select group of management and/or highly compensated employees of the
Plan Sponsor and its affiliated employers within the meaning of Sections 201(2) and
401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended.

The
Plan Sponsor now desires to provide that the termination of a Participants
employment by a Participating Company before such Participants Normal Retirement
Date shall not constitute a Participants Employment Termination Date for purposes
of Article VI of the Plan if such Participant is immediately thereafter employed by PMA
Foundation or by one of its affiliates.

In
order to effect the foregoing the Plan Sponsor desires to amend and restate the Plan
effective January 1, 2000 on the terms set forth herein.

ARTICLE II - DEFINITIONS

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

2.1Administrator means
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.

2.2 Affiliated
Employer means 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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2.3
Annual Distribution Period means the first 60 days of a Plan Year.

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2.4
Beneficiary means the Participants designated beneficiary under the Qualified Plan,
unless the Participant designates a different beneficiary (or, in the event there is no
designated beneficiary under the Qualified Plan, (a) the Participants surviving
spouse, or (b) if there is no surviving spouse, the Participants beneficiary under
the Plan Sponsors group term life insurance program, or (c) if neither (a) nor (b)
is applicable, the executors and/or administrators of the Participants estate).

2.5 Board
of Directors means 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.

2.6
Change of Control means 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 have occurred 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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2.7
Code means the 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.

2.8
Compensation means a Participants Compensation as such term is defined in the Qualified Plan,
without taking into account the Code Section 401(a)(17) limitation and before reduction
for employee contributions under this or any other nonqualified savings plan.

2.9 Deferred
Compensation Plan means the PMA Capital Corporation Executive Deferred Compensation Plan
(formerly known as the PMC Executive Deferred Compensation Plan).

2.10 Determination
Date means March 31, June 30, September 30 and December 31 of each Plan Year.

2.11 Early
Retirement Date means Early Retirement Date as such term is defined in the
PMA Capital Corporation Pension Plan or in the PMA Foundation Pension Plan, as applicable.

2.12 Eligible
Employee means an officer of a Participating Company, provided such officer is a member
of a select group of management and highly compensated employees within the meaning of
Section 201(2) of ERISA.

2.13 Employee
Pre-Tax Contributions means the employee pre-tax contributions (i.e., Basic Contributions)
that a Participant may elect to make to the Qualified Plan.

2.14 Employee
Pre-Tax Credits means the amounts credited to a Participants Excess 401(k) Plan
Account pursuant to Section 4.3.

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2.15 Employer
Matching Contributions means the employer matching contributions made by the
Participating Company on behalf of a Participant to the Qualified Plan.

2.16 Employer
Matching Credits means the amounts credited to a Participants Excess 401(k) Plan
Account pursuant to Section 4.5.

2.17 Employment
Termination Date means the date on which the Participants status as an employee of
any Participating Company terminates but if such Participant terminates employment with
the Participating Companies before his/her Normal Retirement Date and is immediately
thereafter employed by PMA Foundation or one of its affiliates, the Participants
Employment Termination Date means, solely for purposes of Article VI, the date on which
the Participants status as an employee of PMA Foundation or any of its affiliates
terminates. The intent of the foregoing is that, if a Participant terminates employment
with the Participating Companies before his/her Normal Retirement Date and is immediately
thereafter employed by PMA Foundation or one of its affiliates, such termination shall
not constitute such Participants Employment Termination Date for purposes of
Article VI but rather the termination of such Participants employment with PMA
Foundation and its affiliates shall constitute such Participants Employment
Termination Date. However, if such Participants employment with the Participating
Companies terminates on or after his/her Normal Retirement Date, his/her termination of
employment with the Participating Companies shall constitute his/her Employment
Termination Date for purposes of Article VI even if such Participant is immediately
thereafter employed by PMA Foundation or one of its affiliates.

2.18
ERISA means the Employee Retirement Income Security Act of 1974, as amended. Reference to
a specific Section of ERISA shall include such Section, any valid regulation promulgated
thereunder, and any comparable provision of any future legislation amending,
supplementing or superseding such Section.

2.19 Excess
401(k) Plan Account means the separate account established and maintained, solely as a
bookkeeping entry, by the Plan Sponsor in the name of each Participant pursuant to, and
in accordance with, Section 4.1.

2.20 Excess
Salary Reduction Agreement means the written salary reduction agreement entered into by a
Participant and the Participating Company pursuant to this Plan and which is made on a
form prescribed by the Administrator.

2.21 Normal
Retirement Date means Normal Retirement Date as such term is defined in the
PMA Corporation Pension Plan or in the PMA Foundation Pension Plan, as applicable.

2.22 Participant means an Eligible Employee who is participating in the Plan in accordance with the
provisions of Article III.

2.23 Participating
Company means 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 X. Each Participating Company is listed on Appendix B.

2.24 Payroll
Period means the regular payroll period used by the Participating Company for the payment
of wages and salaries to employees.

2.25 Plan means
the PMA Capital Corporation 401(k) Excess Plan, as set forth in this document and as
amended from time to time.

2.26 Plan
Sponsor means PMA Capital Corporation (formerly known as Pennsylvania Manufacturers
Corporation), a Pennsylvania corporation.

2.27
Plan Year means the calendar year.

2.28 Qualified
Plan means the PMA Capital Corporation 401(k) Plan, as amended from time to time.

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2.29
Restatement Effective Date means January 1, 2000. The original effective date of the
Plan was January 1, 1999.

2.30 Total
Disability means a medically determinable physical or mental condition of such severity
and probable prolonged duration as to render the Participant, as determined by the
Administrator, upon the advice of a licensed physician the Administrator may consult,
unable to meet the requirements of his or her customary employment in a satisfactory
manner. A Participants Total Disability shall be determined by the Administrator
upon the basis of a medical examination and of such other evidence as the Administrator
deems necessary and desirable. However, a Participants eligibility for disability
benefits under Title II of the Federal Social Security Act or under the Plan Sponsors
insured long term disability plan shall be conclusive proof of the Participants
Total Disability.

2.31 Valuation
Date means each day on which the NYSE is open for business and such other date(s), if
any, as the Administrator shall determine.

2.32 Vanguard
Funds means any of the mutual funds of The Vanguard Group of Investment Companies listed
in Appendix A.

ARTICLE III - PARTICIPATION

3.1
Eligibility to Participate. Any Eligible Employee who is participating in the
Qualified Plan shall be eligible to become a Participant in this Plan.

3.2
Procedure for and Effect of Admission. An Eligible Employee shall become a Participant
once he/she has completed an Excess Salary Reduction Agreement and such other forms and
provided such data as are reasonably required by the Administrator. By becoming a
Participant, an Eligible Employee shall for all purposes be deemed conclusively to have
assented to the provisions of this Plan and all amendments hereto.

ARTICLE IV CREDITS TO
EXCESS 401(K) PLAN ACCOUNTS

4.1 Establishment
of Plan Accounts. The Plan Sponsor shall establish and maintain on its books and records,
solely as a bookkeeping entry, an Excess 401(k) Plan Account for each Participant. Each
Excess 401(k) Plan Account will be used to record:

| | (a)
          The Employee Pre-Tax Credits and Employer Matching Credits credited under this
          Plan on behalf of the Participant pursuant to Sections 4.3 and 4.5;
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)
          The credits or debits for investment earnings or losses under Section 4.6; and
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| | (c)
          The payments of benefits to the Participant or the Participants
          Beneficiary under Article VI.
| | ----------------------------------------------------------------------------------------------------------------------

4.2 Investment
Obligation of the Plan Sponsor.Benefits are payable as they become due irrespective of
any actual investments the Plan Sponsor may make to meet its obligations. Neither the
Plan Sponsor, nor any trustee (in the event the Plan Sponsor elects to use a grantor
trust to accumulate funds) shall be obligated to purchase or maintain any asset, and any
reference to investments or Vanguard Funds is solely for the purpose of computingthe
value of benefits. To the extent a Participant or any person acquires a right to receive
payments from the Plan Sponsor under this Plan, such right shall be no greater than the
right of any unsecured creditor of the Plan Sponsor. Neither this Plan nor any action
taken pursuant to the terms of this Plan shall be considered to create a fiduciary
relationship between the Plan Sponsor and the Participants or any other persons or to
establish a trust in which the assets are beyond the claims of any unsecured creditor of
the Plan Sponsor.

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4.3
Employee Pre-Tax Credit.

| | (a)
Manner of Election. A Participant may elect, by completing an Excess Salary Reduction
Agreement, to reduce the amount of Compensation that the Participant would otherwise
receive from the Participating Companies and have the amount of such reduction credited
to the Participants Excess 401(k) Plan Account as an Employee Pre-Tax Credit.
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| | (b)
Condition Precedent to Employee Pre-Tax Credits under Plan. In order to be eligible to
have the Plan Sponsor credit amounts as Employee Pre-Tax Credits to the Participants
Excess 401(k) Plan Account under this Plan, the Participant must have elected to make the
maximum Employee Pre-Tax Contributions (i.e., Basic Contributions) permitted by the
Qualified Plan after taking into account any limitations imposed on such Employee Pre-Tax
Contributions by Sections 401(a)(17), 401(k), 401(m), 402(g), or 415 of the Code or any
other limitation imposed by the Qualified Plan. Further, in no event shall any Employee
Pre-Tax Contributions (i.e., Basic Contributions) or Employer Matching Contributions
contributed to the Qualified Plan on behalf of any Participant be transferred to this
Plan from the Qualified Plan.
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| | (c)
Participant Employed during Plan Year. For purposes of determining the Employee Pre-Tax
Credit of a Participant who (1) was previously employed by an unrelated employer, (2) was
covered by a qualified cash or deferred arrangement described in Section 401(k)(2) of the
Code of such unrelated employer, and (3) is first employed by a Participating Company
during a Plan Year, the maximum salary deferral that such Participant may have credited
to his or her Excess 401(k) Plan Account for any Plan Year as an Employee Pre-Tax Credit
under the Plan shall be the amount determined by multiplying his or her Compensation by
the salary deferral percentage elected by the Participant under this Plan after taking
into account (i) the Employee Pre-Tax Contributions for such Plan Year under the
Qualified Plan, plus (ii) the elective deferrals made by such Participant under the
unrelated employers qualified cash or deferred arrangement for such Plan Year.
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4.4
Salary Reduction Agreement. An Excess Salary Reduction Agreement for any Plan Year shall
be made before the beginning of that Plan Year and shall remain in full force and effect
for subsequent Plan Years unless revoked by the Participant. In the case of an Eligible
Employee who is hired during a Plan Year or an employee who becomes an Eligible Employee
during a Plan Year, such Eligible Employee may enter into an Excess Salary Reduction
Agreement within sixty days after the date he/she becomes eligible. In the case of the
Plan Year in which the Plan is first implemented, Eligible Employees may enter into an
Excess Salary Reduction Agreement within two months prior to the Effective Date of the
Plan.

4.5
Employer Matching Credits. For each Payroll Period, the Plan Sponsor shall credit each
Participants Excess 401(k) Plan Account with Employer Matching Credits in an amount
equal to:

| | (a)
The lesser of: (1) 5% of the Eligible Employees Compensation for the
Payroll Period; or (2) the sum of the Employee Pre-Tax Contributions and
Employee Pre-Tax Credits on behalf of the Participant for the Payroll Period;
minus
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| | (b)
          The amount of Employer Matching Contributions made to the Qualified Plan on
          behalf of the Participant for the Payroll Period.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------

4.6
Allocation among Investment Options. A Participant may direct that the Employee Pre-Tax
Credits and the Employer Matching Credits credited to his or her Excess 401(k) Plan
Accounts be valued, in accordance with Section 4.8, as if the balance credited to the
Excess 401(k) Plan Account were invested in one or more Vanguard Funds or other
investments selected by the Participant. The Participant may select any of the investment
options set forth in Appendix A in multiples of 5% (or such smaller percentage as the
Administrator may determine). The designation of one or more investment options, whether
a Vanguard Fund or otherwise, by a Participant under this Section 4.6 shall be used
solely to measure the amounts of investment earnings or losses that will be credited or
debited to the Participants Excess 401(k) Plan Account on the Plan Sponsors
books and records, and the Plan Sponsor shall not be required under the Plan to establish
any account in the Vanguard Funds or to purchase any Vanguard Fund shares or other
investment on the Participants behalf. The designation by a Participant of any
investment option under this Section 4.6 shall be made in accordance with the rules and
procedures prescribed by the Administrator.

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4.7
Administration of Investments. The investment gain or loss with respect to Employee
Pre-Tax Credits and the Employer Matching Credits credited to the Participants
Excess 401(k) Plan Account on behalf of such Participant shall continue to be determined
in the manner selected by the Participant pursuant to Section 4.6 until a new designation
is filed with the Administrator or its appointee. If any Participant fails to file a
designation, he or she shall be deemed to have elected to continue to follow the
investment designation, if any, in effect for the immediately preceding Plan Year. A
designation filed by a Participant changing his or her investment option selection shall
apply to either future contributions, amounts already accumulated in his or her Excess
401(k) Plan Account, or both. A Participant may change his or her investment selection on
any Valuation Date and such change shall be effected as soon as administratively
practicable.

4.8
Valuation of Excess 401(k) Plan Accounts. The Excess 401(k) Plan Account of each
Participant shall be valued on each Valuation Date based upon the performance of the
investment option or options selected by the Participant. Such valuation shall reflect
the net asset value expressed per share of each designated investment option. Each Excess
401(k) Plan Account shall be valued separately. A valuation summary shall be prepared on
each Determination Date and/or such other dates as may be determined by the Administrator.

ARTICLE V - VESTING

5.1
Immediate Vesting. At all times, a Participant will be 100% vested in his or her
Excess 401(k) Plan Account.

ARTICLE VI - PAYMENT OF
BENEFITS

6.1 Benefit
upon Termination of Employment. Upon a Participants Employment Termination Date
before attaining his or her Early Retirement Date, the Plan Sponsor shall pay to the
Participant an amount equal to the balance in the Participants Excess 401(k) Plan
Account in two installments:

| | (a)
          The first installment, in an amount equal to 50% of the balance in the Excess
          401(k) Plan Account, shall be paid within 60 days following his/her Employment
          Termination Date; and
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| | (b)
          The second installment, in an amount equal to the then remaining balance in the
          Excess 401(k) Plan Account, shall be paid during the first Annual Distribution
          Period following the date on which the first installment was paid.
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6.2 Payment
of Benefits at Retirement. Upon a Participants actual retirement on or after
attaining his/her Early Retirement Date while in the employment of a Participating
Company or of PMA Foundation or an affiliate of PMA Foundation, as applicable, the Plan
Sponsor shall pay such Participant a benefit either:

| | (a)
                In two installments, according to the provisions of Section 6.1
above; or
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| | (b)
  If the Participant makes an irrevocable election at least 90 days prior to the
Plan Year in which he or she retires on or after his/her Early Retirement Date, in the
following five annual installments:
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| | (1)
  During the first Annual Distribution Period following the Participants
Employment Termination Date, a cash payment in an amount equal to 20% of the balance in
the Participants Excess 401(k) Plan Account on the Valuation Date coincident with,
or next preceding, the date payment is made;
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| | (2)
  During the second Annual Distribution Period following the Participants
Employment Termination Date, a cash payment in an amount equal to 25% of the then balance
in the Participants Excess 401(k) Plan Account on the Valuation Date coincident
with, or next preceding, the date payment is made;
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| | (3)
  During the third Annual Distribution Period following the Participants
Employment Termination Date, a cash payment in an amount equal to 33% of the then balance
in the Participants Excess 401(k) Plan Account on the Valuation Date coincident
with, or next preceding, the date payment is made;
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| | (4)
  During the fourth Annual Distribution Period following the Participants
Employment Termination Date, a cash payment in an amount equal to 50% of the then balance
in the Participants Excess 401(k) Plan Account on the Valuation Date coincident
with, or next preceding, the date payment is made; and
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| | (5)
  During the fifth Annual Distribution Period following the Participants
Employment Termination Date, a cash payment in an amount equal to the then remaining
balance in the Participants Excess 401(k) Plan Account on the Valuation Date
coincident with, or next preceding, the date payment is made.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6.3 Payment
of Benefits Following Death. Upon a Participants date of death, the Administrator
shall reduce the balance in the Participants Excess 401(k) Plan Account by the
amount that the Participant has previously received or shall receive pursuant to Section
6.2. Thereafter, the Plan Sponsor shall pay to the Participants Beneficiary a
single sum payment, in cash, equal to the balance credited to the Participants
Excess 401(k) Plan Account on the Valuation Date coincident with, or next preceding, the
date payment is made. Payment under this Section 6.3 shall be made as soon as practicable
following the receipt by the Plan Sponsor of acceptable proof of the Participants
death.

6.4 Earnings
where Installment Payments Are Made. Where any benefit is paid in annual installments,
the undistributed balance credited to the Account during the period of the installment
payments and ending on the date of the last installment payment shall be credited with
investment earnings or debited with investment losses in accordance with Section 4.6.

6.5 Form
of Payment. All payments under this Plan shall be in cash only and no Participant or
Beneficiary shall have any right to receive a distribution in any other form of payment.

6.6 Change
of Control where Installment Payments Are Made. In the event of a Change of Control of
the Plan Sponsor, a terminated or retired Participant, who has not received his or her
entire balance under Section 6.1 or 6.2, shall be paid by the Plan Sponsor any
undistributed balance credited to the Participants Excess 401(k) Plan Account, in a
single sum payment, in cash, as soon as practicable following such Change of Control.

6.7 Reduced
Benefit upon Request following a Change of Control. Within 60 days following a Change of
Control, a Participant may elect in writing to receive an immediate distribution of a
reduced benefit under the Plan. If the Participant makes such an election under this
Section 6.7, the amount of the reduced benefit shall equal the balance credited to the
Participants Excess 401(k) Plan Account, reduced by the lesser of 5% of the balance
or $25,000.

6.8 Total
Disability. If a Participant incurs a Total Disability, he or she will be deemed to have
incurred his or her Employment Termination Date on the date that is 26 weeks after the
date he or she commenced receiving short term disability benefits under the Plan Sponsors
Health and Welfare Plan and the provisions of Section 6.1 shall apply to such Participant.

ARTICLE VII - ADMINISTRATION
OF THE PLAN

7.1 Administrator.
The Committee appointed by the President of the Plan Sponsor is hereby designated as the
administrator of the Plan. 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. 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 an
Administrator and fill any vacancy which may arise.

-7-

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7.2
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.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7.3
Powers and Duties of theAdministrator. 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, without limiting the generality of the foregoing, the power to:

| | (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, 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 valuations, certificates, opinions and reports
furnished by the persons described in (a) or (b) above;
| | ---------------------------------------------------------------------------------------------------------------------------------------------

| | (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;
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

| | (j)
Determine the status and rights of Participants and their Beneficiaries;
| | ----------------------------------------------------------------------------

| | (k)
Direct the Plan Sponsor to pay benefits under the Plan, and to give such other directions
and instructions as may be necessary for the proper administration of the Plan; and
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

-8-

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| | (l)
Be responsible for the preparation, filing and disclosure on behalf of the Plan of such
documents and reports as are required by any applicable federal or state law.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7.4
Decisions of Administrator. All decisions of the Administrator, and any action taken by
it in respect of the Plan shall be conclusive and binding on all persons, subject to the
claims and appeal procedure described in Section 7.10 hereof.

7.5
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 Plan Sponsor.

7.6
Eligibility to Participate. No member of the Administrator who is also an Eligible
Employee 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.

7.7
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 of insurance, insuring members of the Administrator and other employees to whom
any 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 7.7(a) above, or if such insurance is provided
but any of the members of the Administrator or other employees referred to in Section
7.7(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.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7.8
Agent for Service of Legal Process. The name and address of the person designated as the
agent for service of legal process are:

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

7.9
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
7.9.

7.10
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.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

-9-

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| | (1)
  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.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (2)
  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 7.10.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (3)
  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 7.10(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.

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.

-10-

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| | (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 VIII - AMENDMENT AND
TERMINATION

8.1
Amendment or Termination.

| | (a) Amendment.
The Board of Directors shall have the right to alter, amend, modify, restate or terminate
the Plan, or any part thereof, through the adoption of a written resolution when in its
absolute discretion, it determines such action to be advisable; provided, however, that
no such action by the Board of Directors shall reduce the amount credited to a Participants
Excess 401(k) Plan Account at the time of the adoption of the amendment, modification or
restatement and no such amendment, modification or restatement 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) Termination.
In the event of termination, the Plan Sponsor, at its option, may pay each Participant an
amount equal to the total amount credited to the Participants Excess 401(k) Plan
Account in a single sum payment of cash or, in the alternative, pay such amount in
accordance with the provisions of Article VI. Termination of the Plan shall not serve to
reduce the amount credited to a Participants Excess 401(k) Plan Account on the date
of termination. Moreover, no such 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.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

ARTICLE IX - MISCELLANEOUS

9.1 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 Plan Sponsor and/or the Administrator and a Participant. Benefits payable
under this Plan to a Participant or Beneficiary, if applicable, shall be paid directly by
the Plan Sponsor from a grantor trust (the Trust) within the meaning of
Section 671 of the Code, to the extent that such benefits are not paid from the general
assets of the Plan Sponsor or other Participating Company. The Trust must be an
irrevocable grantor trust, the assets of which are subject to the claims of the general
creditors of the Plan Sponsor in the event of its insolvency, defined for the purposes of
this provision as the Plan Sponsors inability to pay its debts as they become due
or that the Plan Sponsor is subject to a pending proceeding under the United States
Bankruptcy Code. Except as to any amounts paid or payable to the Trust, the Plan Sponsor
shall not be obligated to set aside, earmark or escrow any funds or other assets to
satisfy its obligations under this Plan, and the Participant and his or her Beneficiary
shall not have any property interest in any specific assets of the Plan Sponsor other
than an unsecured right to receive payments from the Plan Sponsor as provided herein. To
the extent any person acquires a right hereunder, such right(s) shall be no greater than
those of a general, unsecured creditor of the Plan Sponsor. In the event that the amounts
accumulated in the Trust are not sufficient to pay the benefits payable under this Plan,
such benefits shall be paid directly from the general assets of the Plan Sponsor or other
Participating Company.

9.2
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.

9.3 Payments
to Minors and Incompetents. If a Participant or Beneficiary 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.

-11-

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9.4
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 Plan Sponsor or other
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 9.4(a), if a Participant is indebted to the Plan Sponsor or other
Participating Company at any time when payments are to be made by the Plan Sponsor to the
Participant under the provisions of the Plan, the Plan Sponsor shall have the right to
reduce the amount of payment to be made to the Participant (or the Participants
Beneficiary) to the extent of such indebtedness. Any election by the Plan Sponsor not to
reduce such payment shall not constitute a waiver of its claim for such indebtedness.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9.5 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.

9.6 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.

9.7 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
Beneficiary 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.

9.8 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.

9.9 Application
of Plan. The Plan, as set forth herein, shall apply to any Participant terminating
employment on or after the Restatement Effective Date.

9.10
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 the Plan Sponsor or any supplemental arrangement which
constitutes a part of the Plan Sponsors regular compensation structure.

-12-

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9.11 Inurement.
The Plan shall be binding upon, and shall 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.

9.12
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.

9.13 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.

9.14 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 Beneficiary 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
Beneficiary (as applicable), upon the request of the Participant or Beneficiary, the
Administrator shall immediately make distribution to the Participant or Beneficiary of
the amount so taxable.

9.15
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 29 CFR § 2520.104-23.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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.

9.16 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.

-13-

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ARTICLE X - ADOPTION BY
AFFILIATED EMPLOYERS

10.1
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 defines the Eligible Employees; and
| | -----------------------------------------------------------------------------------------------------------------------------------------------------

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

10.2 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.

10.3 Application
of Withdrawal Provisions. The withdrawal provisions contained in Section 10.2 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.

10.4
Plan Sponsor Appointed Agent of Participating Companies. As a condition precedent to the
adoption of the Plan, each Affiliated Employer must appoint 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.

-14-

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APPENDIX A - INVESTMENT
OPTIONS AVAILABLE FOR MEASUREMENT OF INVESTMENT EARNINGS OR LOSSES UNDER PLAN

| | (a)
Morgan Growth Fund
| | ----------------------

| | (b)
Total Bond Market Index Fund
| | --------------------------------

| | (c)
500 Index Fund
| | ------------------

| | (d)
Treasury Money Market Fund
| | ------------------------------

| | (e)
STAR Fund
| | -------------

| | (f)
Windsor II Fund
| | -------------------

| | (g)
International Growth Fund
| | -----------------------------

| | (h)
Explorer Fund
| | -----------------

| | (i)
Extended Market Index Fund
| | ------------------------------

| | (j)
Total International Stock Index Fund
| | ----------------------------------------

| | (k)
Any other investment option selected by the Administrator
| | -------------------------------------------------------------

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