PMA CAPITAL CORPORATION
EXECUTIVE MANAGEMENT PENSION PLAN (AS AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2000)

---

TABLE OF CONTENTS

`Page


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   Eligible Executive.......................................................................................3
   1.9   Good Reason..............................................................................................3
   1.10  Participant..............................................................................................3
   1.11  Participating Company....................................................................................3
   1.12  Past Service Credit......................................................................................3
   1.13  Past Service Retirement Benefit..........................................................................4
   1.14  Pension Plan.............................................................................................4
   1.15  Plan.....................................................................................................4
   1.16  Plan Sponsor.............................................................................................4
   1.17  Plan Year................................................................................................4
   1.18  PMA SERP.................................................................................................4
   1.19  Restatement Effective Date...............................................................................4
   1.20  Section 401(a)(17) Limitation............................................................................4
   1.21  Section 415 Limitation...................................................................................4
   1.22  Spouse...................................................................................................4
   1.23  Termination of Employment................................................................................4

ARTICLE II- PAST SERVICE RETIREMENT BENEFITS......................................................................4

   2.1   Past Service Credit......................................................................................4
   2.2   Past Service Retirement Benefit..........................................................................5
   2.3   Reemployment.............................................................................................5

ARTICLE III - VESTING OF PAST SERVICE RETIREMENT BENEFITS.........................................................5

   3.1   Full Vesting.............................................................................................5
   3.2   Forfeitures..............................................................................................5

ARTICLE IV - FORM OF PAYMENT OF PAST SERVICE RETIREMENT BENEFITS..................................................5

   4.1   Payment of Past Service Retirement Benefit...............................................................5
   4.2   Form of Payment..........................................................................................6
   4.3   Change of Control during Employment......................................................................6
   4.4   Change of Control during Retirement......................................................................6
   4.5   Failure to Assume Plan upon Change of Control............................................................6
   4.6   Actuarial Equivalent.....................................................................................6

ARTICLE V- DEATH BENEFIT..........................................................................................7

   5.1   Death Benefit............................................................................................7
   5.2   Simultaneous Death.......................................................................................7

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

   6.1   Administrator............................................................................................7
   6.2   Committee Action.........................................................................................7
   6.3   Powers of Administrator..................................................................................7
   6.4   Decisions of Administrator...............................................................................8
   6.5   Administrative Expenses..................................................................................8
   6.6   Eligibility to Participate...............................................................................8
   6.7   Insurance and Indemnification for Liability..............................................................8
   6.8   Agent for Service of Legal Process.......................................................................9
   6.9   Delegation of Responsibility.............................................................................9
   6.10  Claims Procedure.........................................................................................9

ARTICLE VII - MISCELLANEOUS......................................................................................10

   7.1   Funding.................................................................................................10
   7.2   Amendment or Termination................................................................................11
   7.3   Status of Employment....................................................................................11
   7.4   Payments to Minors and Incompetents.....................................................................11
   7.5   Inalienability of Benefits..............................................................................11
   7.6   Governing Law...........................................................................................11
   7.7   Severability............................................................................................11
   7.8   Required Information to Administrator...................................................................12
   7.9   Income and Payroll Tax Withholding......................................................................12
   7.10  Application of Plan.....................................................................................12
   7.11  No Effect on Other Benefits.............................................................................12
   7.12  Inurement...............................................................................................12
   7.13  Notice..................................................................................................12
   7.14  Captions................................................................................................12
   7.15  Acceleration of Payments................................................................................12
   7.16  Reporting and Disclosure Requirements...................................................................13
   7.17  Gender and Number.......................................................................................13

ARTICLE VIII - ADOPTION BY AFFILIATED EMPLOYERS..................................................................13

   8.1   Adoption of Plan........................................................................................13
   8.2   Withdrawal from Plan....................................................................................14
   8.3   Application of Withdrawal Provisions....................................................................14
   8.4   Plan Sponsor Appointed Agent of Participating Companies.................................................14

APPENDIX A - LIST OF PARTICIPATING COMPANIES.....................................................................15


PLAN EXHIBIT A - PLAN ADOPTION AGREEMENT.........................................................................16


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`

---

PMA CAPITAL CORPORATION
EXECUTIVE MANAGEMENT PENSION PLAN (AS AMENDED AND RESTATED EFFECTIVE JANUARY
1, 2000)

WHEREAS,
some executives hired in mid-career by the 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 PMA
Capital Corporation Pension Plan (formerly known as The PMC Pension Plan (the
Pension Plan)), due to the age of the executive when hired (Short
Service Reduction); and

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

WHEREAS,
the Plan Sponsor established the PMA Capital Corporation Supplemental Executive
Retirement Plan (formerly known as The PMC Supplemental Executive Retirement Plan) (the
PMA SERP), effective January 1, 1993, to provide supplemental executive
retirement benefits for the purposes of offsetting the Short Service Reduction and the
Sections 401(a)(17) and 415 Limitations 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, as a separate plan, the PMA Capital Corporation
Executive Management Pension Plan (the Plan), effective January 1, 1999,
in order 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 PMA SERP; and

WHEREAS,
the Plan Sponsor desires to 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; and

WHEREAS,
the Plan Sponsor desires to amend and restate the Plan in order to effect the foregoing;

NOW
THEREFORE, the Plan Sponsor does hereby amend and restate the Plan, effective January
1, 2000, as follows:

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);
| | ------------------------------------------------------------------------------------

-1-

---

| | (b)
                Trades or businesses (whether or not incorporated) which are under
common                control (as defined in Section 414(c) of the Code);
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (c)
                Trades or businesses (whether or not incorporated) which constitute
an                affiliated service group (as defined in Section 414(m) of the Code); or
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (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.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (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
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (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.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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.

-2-

---

1.8
Eligible Executive. Any executive of a Participating Company who is hired as a
Vice President or as a more senior officer on or after January 1, 1990.

1.9
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;
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

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

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

| | (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.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

1.10
Participant. An Eligible Executive or former Eligible Executive who accrues,
or who has accrued, benefits under this Plan on and after January 1, 1999.

1.11
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.

1.12
Past Service Credit. A Participant's past service credit under this Plan on and after
January 1, 1999, and under the PMA SERP before January 1, 1999, both as determined in
accordance with Section 2.1 hereof.

-3-

---

1.13
Past Service Retirement Benefit. A Participant's past service retirement benefit under
this Plan on and after January 1, 1999, and under the PMA SERP before January 1, 1999,
both as determined in accordance with Section 2.2 hereof.

1.14
Pension Plan. The PMA Capital Corporation Pension Plan (formerly known as The PMC Pension
Plan) as in effect on the Restatement 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.

1.15
Plan. The PMA Capital Corporation Executive Management Pension Plan as set forth herein
and as it may be amended and/or restated from time to time.

1.16
Plan Sponsor. PMA Capital Corporation, a Pennsylvania corporation.

1.17
Plan Year. Each calendar year beginning on January 1 and ending on the following December
31.

1.18
PMA SERP. The PMA Capital Corporation Supplemental Executive Retirement Plan,
as in effect before January 1, 1999.

1.19
Restatement Effective Date. January 1, 2000. The original effective date of
the Plan was January 1, 1999.

1.20
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.

1.21
Section 415 Limitation. The limitation on benefits payable from the Pension
Plan imposed by Section 415 of the Code.

1.22
Spouse. A person who is married to a Participant and who is recognized as the
Participant's Spouse for purposes of the Pension Plan.

1.23
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.

ARTICLE II - PAST
SERVICE RETIREMENT BENEFITS

2.1
Past Service Credit. A Participants Past Service Credit under the Plan on and after
January 1, 1999, and under the PMA SERP before January 1, 1999, shall be determined as
follows. A Participant who is or was an Eligible Executive shall be credited with one
additional year of Benefit Service (as such term is defined in Article I of the Pension
Plan) under this Plan on and after January 1, 1999, and under the PMA SERP before January
1, 1999, for each year of Benefit Service credited under the Pension Plan until the sum
of the Participants years of Benefit Service credited under this Plan on and after
January 1, 1999, and under the PMA SERP before January 1, 1999 (i.e., the Participants
Past Service Credit under the Plan on and after January 1, 1999, and under the PMA SERP
before January 1, 1999) and the Participants years of Benefit Service credited
under the Pension Plan equal twenty-five (25) years of Benefit Service. If the sum of a
Participants Past Service Credit under the Plan on and after January 1, 1999, the
PMA SERP before January 1, 1999, and such Participants years of Benefit Service

-4-

---

under the Pension Plan is greater than
twenty-five (25), such Participants Past Service Credit under the Plan and under
the PMA SERP shall be reduced first so that said sum does not exceed twenty-five (25).
Any such reduction shall be made first under the PMA SERP and then under the Plan. (All
references in this Plan to Articles, Sections or specific paragraphs of the Pension Plan
shall include any successor Article, Section or paragraph or any amendment thereto.)

2.2
Past Service Retirement Benefit. Subject to Sections 2.3 and 7.2 hereof, a Participants
Past Service Retirement Benefit, if any, shall be an amount equal to the amount that
would be payable under the benefit formula actually used in determining such Participants
benefit under Article V of the Pension Plan at the time such benefit becomes payable but
using only the Participants Past Service Credit determined under Section 2.1 as
his/her Years of Benefit Service (as defined in Article I of the Pension Plan) under the
Pension Plan and the following additional assumptions:

| | (a)
                The Participant shall be deemed to receive Compensation (as such
term is defined                in Article I of the Pension Plan) during each year of past
service equal to such                Participants annual rate of pay as in effect
on the Participants                Employment Commencement Date (as such term is
defined in Article I of the                Pension Plan) without taking into account the
Section 401(a)(17) Limitation or                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
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (b)
                The Section 415 Limitation contained in Article XI of the Pension
Plan shall not                be taken into account.
| | ------------------------------------------------------------------------------------------------------------------------------------------

2.3
Reemployment. If a Participant whose employment with a Participating Company was
terminated at a time when such Participant had a Past Service Retirement Benefit and
whose benefit had commenced to be paid under this Plan or under the PMA SERP becomes
reemployed by the Participating Company, payment of such Past Service Retirement Benefit
shall be suspended until such individual again ceases to be employed by the Participating
Company. Thereupon, payment of such Past Service Retirement Benefit shall recommence, but
only if such Participant is still entitled, after taking into account the additional
Benefit Service earned by such Participant during his or her period of reemployment,
under the terms of Sections 2.1 and 2.2 to a Past Service Retirement Benefit under the
Plan or PMA SERP.

ARTICLE III - VESTING
OF PAST SERVICE 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
Past Service Retirement Benefit, if any, once he/she has satisfied the age and service
requirements for early or normal retirement under the Pension Plan, as amended effective
June 1, 1999, whichever occurs first. Notwithstanding the foregoing, a Participant shall
forfeit his/her vested interest, if any, in his/her Past Service Retirement Benefit if
his/her employment is terminated for Cause.

3.2
Forfeitures. Any amount forfeited hereunder by a Participant pursuant to
Section 3.1 shall constitute a reduction of the Participating Company's liability
under the Plan and/or PMA SERP and shall not be allocated to the remaining Participants.

ARTICLE IV - FORM OF
PAYMENT OF PAST SERVICE RETIREMENT BENEFITS

4.1
Payment of Past Service Retirement Benefit. Except as otherwise provided in Sections 4.3
and 7.2 hereof, a Participants vested Past Service 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. If a Participant elects early retirement under
the Pension Plan then the Participants Past Service Retirement Benefit shall
commence at the same time as payments from the Pension Plan and shall be reduced by the
same early retirement reduction factors, if any, applicable to his/her retirement income
from the Pension Plan, as amended effective June 1, 1999.

-5-

---

4.2
Form of Payment. The normal form of payment of a Participants Past Service
Retirement Benefit shall be the same as that provided under the Pension Plan. Subject to
Section 4.5 hereof, a Participants Past Service 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 Past Service 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 Past Service Retirement Benefit in the form of a single life
annuity, as reduced, if necessary, in the manner set forth in Section 4.1 hereof. 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 Past Service Retirement Benefit. The Participants Past
Service Retirement Benefit under this provision shall be paid out in a lump sum upon such
termination of employment. 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 termination. Such amount will be calculated as the Actuarial
Equivalent of the Participants Past Service 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 Past Service Retirement Benefit in accordance with Sections
4.1 and 4.2 hereof.

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 Past Service 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 Past Service Retirement Benefit. Such
Past Service 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 Past Service Retirement Benefit.

4.6
Actuarial Equivalent. A Past Service 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 Past Service Retirement
Benefit payable hereunder using the assumptions for determining Actuarial Equivalence
provided under the Pension Plan for making a comparable determination.

-6-

---

ARTICLE V
- DEATH BENEFIT

5.1
Death Benefit. Except as otherwise provided herein, a death benefit shall be payable to
the surviving Spouse of a Participant who dies before commencement of his/her Past
Service Retirement Benefit, if the Spouse is entitled to a qualified pre-retirement
survivor annuity under Article VI of the Pension Plan. The amount of the death benefit
hereunder shall be based on the amount of the Participants Past Service Retirement
Benefit determined using the date of death as the date of retirement or separation from
service and, for purposes of converting the Past Service Retirement Benefit to a spousal
survivor death benefit, using the rules contained in Article VI of the Pension Plan. The
death benefit shall be administered and distributed in accordance with the provisions of
Article VI of the Pension Plan.

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 cash 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.

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. 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.

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:

-7-

---

| | (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.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (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.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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

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

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

| | (d)
 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:

-8-

---

| | (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 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.

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:
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

-9-

---

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

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

| | (iii)
  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.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | (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.

-10-

---

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 Past Service 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 Past Service 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 Past
Service 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.

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.

-11-

---

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 or other Participating Company
shall withhold from such deferred compensation payments any taxes required to be withheld
for federal, state or local tax purposes.

7.10
Application of Plan. The Plan, as set forth herein, shall apply to any Participant
terminating employment on or after the Restatement 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 shall inure to, the benefit of the
Participating Company and its successors and assigns, and the Participant and the
Participants Spouse, 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

-12-

---

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.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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:
| | -----------------------------------------------------------------------------------------------------------------

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

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

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

| | (iv)
  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 Executives.
| | --------------------------------------------------------------------------------------------------------------------------------------------------

-13

---

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.

-14-

---