PMA CAPITAL CORP
EXHIBIT 10.4
<DOCUMENT>
<TYPE>EX-10
<SEQUENCE>5
<FILENAME>pmaex10-4.htm
<DESCRIPTION>EXHIBIT 10.4
<TEXT>

<HTML>
<HEAD>
  <TITLE>EXECUTIVE MANAGEMENT PENSION PLAN</TITLE>
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<BODY>

<P ALIGN="CENTER"><B>PMA CAPITAL CORPORATION</B> </P>

<P ALIGN="CENTER"><B>EXECUTIVE MANAGEMENT PENSION PLAN</B> </P>

<P ALIGN="CENTER"><B>MARCH 2001</B> </P>
<BR><BR>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<P ALIGN="CENTER"><B><U>TABLE OF CONTENTS</U></B> </P>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD ALIGN="RIGHT"><B>PAGE</B></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="8%" ALIGN="RIGHT">&nbsp;</TD>
     <TD WIDTH="8%" ALIGN="RIGHT">&nbsp;</TD>
     <TD WIDTH="80%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="4%" ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="3">ARTICLE I - DEFINITIONS</TD>
     <TD ALIGN="RIGHT">1</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.1</TD>
     <TD ALIGN="LEFT">Actuarial Equivalent</TD><TD ALIGN="RIGHT">1</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.2</TD>
     <TD ALIGN="LEFT">Administrator</TD><TD ALIGN="RIGHT">1</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.3</TD>
     <TD ALIGN="LEFT">Affiliated Employer</TD><TD ALIGN="RIGHT">1</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.4</TD>
     <TD ALIGN="LEFT">Board of Directors</TD><TD ALIGN="RIGHT">2</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.5</TD>
     <TD ALIGN="LEFT">Cause</TD><TD ALIGN="RIGHT">2</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.6</TD>
     <TD ALIGN="LEFT">Change of Control</TD><TD ALIGN="RIGHT">2</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.7</TD>
     <TD ALIGN="LEFT">Code</TD><TD ALIGN="RIGHT">2</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.8</TD>
     <TD ALIGN="LEFT">Effective Date</TD><TD ALIGN="RIGHT">2</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.9</TD>
     <TD ALIGN="LEFT">Eligible Executive</TD><TD ALIGN="RIGHT">2</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.10</TD>
     <TD ALIGN="LEFT">Good Reason</TD><TD ALIGN="RIGHT">3</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.11</TD>
     <TD ALIGN="LEFT">Participant</TD><TD ALIGN="RIGHT">3</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.12</TD>
     <TD ALIGN="LEFT">Participating Company</TD><TD ALIGN="RIGHT">3</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.13</TD>
     <TD ALIGN="LEFT">Past Service Credit</TD><TD ALIGN="RIGHT">3</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.14</TD>
     <TD ALIGN="LEFT">Past Service Retirement Benefit</TD><TD ALIGN="RIGHT">3</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.15</TD>
     <TD ALIGN="LEFT">Pension Plan</TD><TD ALIGN="RIGHT">3</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.16</TD>
     <TD ALIGN="LEFT">Plan.</TD><TD ALIGN="RIGHT">4</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.17</TD>
     <TD ALIGN="LEFT">Plan Sponsor</TD><TD ALIGN="RIGHT">4</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.18</TD>
     <TD ALIGN="LEFT">Plan Year</TD><TD ALIGN="RIGHT">4</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.19</TD>
     <TD ALIGN="LEFT">PMA SERP</TD><TD ALIGN="RIGHT">4</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.20</TD>
     <TD ALIGN="LEFT">Section 401(a)(17) Limitation</TD><TD ALIGN="RIGHT">4</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.21</TD>
     <TD ALIGN="LEFT">Section 415 Limitation</TD><TD ALIGN="RIGHT">4</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.22</TD>
     <TD ALIGN="LEFT">Spouse</TD><TD ALIGN="RIGHT">4</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">1.23</TD>
     <TD ALIGN="LEFT">Termination of Employment</TD><TD ALIGN="RIGHT">4</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="3">ARTICLE II - PAST SERVICE RETIREMENT BENEFITS</TD><TD ALIGN="RIGHT">4</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">2.1</TD>
     <TD ALIGN="LEFT">Past Service Credit</TD><TD ALIGN="RIGHT">4</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">2.2</TD>
     <TD ALIGN="LEFT">Past Service Retirement Benefit</TD><TD ALIGN="RIGHT">4</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">2.3</TD>
     <TD ALIGN="LEFT">Reemployment</TD><TD ALIGN="RIGHT">5</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="3">ARTICLE III - VESTING OF PAST SERVICE RETIREMENT BENEFITS</TD><TD ALIGN="RIGHT">5</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">3.1</TD>
     <TD ALIGN="LEFT">Full Vesting</TD><TD ALIGN="RIGHT">5</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">3.2</TD>
     <TD ALIGN="LEFT">Forfeitures</TD><TD ALIGN="RIGHT">5</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="3">ARTICLE IV - FORM OF PAYMENT OF PAST SERVICE RETIREMENT BENEFITS</TD><TD ALIGN="RIGHT">5</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">4.1</TD>
     <TD ALIGN="LEFT">Payment of Past Service Retirement Benefit</TD><TD ALIGN="RIGHT">5</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">4.2</TD>
     <TD ALIGN="LEFT">Form of Payment</TD><TD ALIGN="RIGHT">5</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">4.3</TD>
     <TD ALIGN="LEFT">Change of Control During Employment</TD><TD ALIGN="RIGHT">5</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">4.4</TD>
     <TD ALIGN="LEFT">Change of Control During Retirement</TD><TD ALIGN="RIGHT">6</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">4.5</TD>
     <TD ALIGN="LEFT">Failure to Assume Plan upon Change of Control</TD><TD ALIGN="RIGHT">6</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">4.6.&nbsp;</TD>
     <TD ALIGN="LEFT">Actuarial Equivalent</TD><TD ALIGN="RIGHT">6</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="3">ARTICLE V - DEATH BENEFIT</TD><TD ALIGN="RIGHT">6</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">5.1</TD>
     <TD ALIGN="LEFT">Death Benefit</TD><TD ALIGN="RIGHT">6</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">5.2</TD>
     <TD ALIGN="LEFT">Simultaneous Death</TD><TD ALIGN="RIGHT">6</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="3">ARTICLE VI - ADMINISTRATION OF THE PLAN</TD><TD ALIGN="RIGHT">6</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">6.1</TD>
     <TD ALIGN="LEFT">Administrator</TD><TD ALIGN="RIGHT">6</TD></TR>
</TABLE>

<P ALIGN="CENTER">-i- </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<TABLE CELLPADDING="0" CELLSPACING="0" BORDER="0" WIDTH="100%">
<TR VALIGN="BOTTOM">
     <TD COLSPAN="3"></TD>
     <TD ALIGN="RIGHT"></TD></TR>
<TR VALIGN="BOTTOM">
     <TD WIDTH="8%" ALIGN="RIGHT">&nbsp;</TD>
     <TD WIDTH="8%" ALIGN="RIGHT">&nbsp;</TD>
     <TD WIDTH="80%" ALIGN="LEFT">&nbsp;</TD>
     <TD WIDTH="4%" ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">6.2</TD>
     <TD ALIGN="LEFT">Committee Action</TD><TD ALIGN="RIGHT">7</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">6.3</TD>
     <TD ALIGN="LEFT">Powers of Administrator</TD><TD ALIGN="RIGHT">7</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">6.4</TD>
     <TD ALIGN="LEFT">Decisions of Administrator</TD><TD ALIGN="RIGHT">8</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">6.5</TD>
     <TD ALIGN="LEFT">Administrative Expenses</TD><TD ALIGN="RIGHT">8</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">6.6</TD>
     <TD ALIGN="LEFT">Eligibility to Participate</TD><TD ALIGN="RIGHT">8</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">6.7</TD>
     <TD ALIGN="LEFT">Insurance and Indemnification for Liability</TD><TD ALIGN="RIGHT">8</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">6.8</TD>
     <TD ALIGN="LEFT">Agent for Service of Legal Process</TD><TD ALIGN="RIGHT">8</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">6.9</TD>
     <TD ALIGN="LEFT">Delegation of Responsibility</TD><TD ALIGN="RIGHT">8</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">6.10</TD>
     <TD ALIGN="LEFT">Claims Procedure</TD><TD ALIGN="RIGHT">8</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="3">ARTICLE VII - MISCELLANEOUS</TD><TD ALIGN="RIGHT">10</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.1</TD>
     <TD ALIGN="LEFT">Funding</TD><TD ALIGN="RIGHT">10</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.2</TD>
     <TD ALIGN="LEFT">Amendment or Termination</TD><TD ALIGN="RIGHT">10</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.3</TD>
     <TD ALIGN="LEFT">Status of Employment</TD><TD ALIGN="RIGHT">10</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.4</TD>
     <TD ALIGN="LEFT">Payments to Minors and Incompetents</TD><TD ALIGN="RIGHT">10</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.5</TD>
     <TD ALIGN="LEFT">Inalienability of Benefits</TD><TD ALIGN="RIGHT">10</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.6</TD>
     <TD ALIGN="LEFT">Governing Law</TD><TD ALIGN="RIGHT">11</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.7</TD>
     <TD ALIGN="LEFT">Severability</TD><TD ALIGN="RIGHT">11</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.8</TD>
     <TD ALIGN="LEFT">Required Information to Administrator</TD><TD ALIGN="RIGHT">11</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.9</TD>
     <TD ALIGN="LEFT">Income and Payroll Tax Withholding</TD><TD ALIGN="RIGHT">11</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.10</TD>
     <TD ALIGN="LEFT">Application of Plan</TD><TD ALIGN="RIGHT">11</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.11</TD>
     <TD ALIGN="LEFT">No Effect on Other Benefits</TD><TD ALIGN="RIGHT">11</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.12</TD>
     <TD ALIGN="LEFT">Inurement</TD><TD ALIGN="RIGHT">12</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.13</TD>
     <TD ALIGN="LEFT">Notice</TD><TD ALIGN="RIGHT">12</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.14</TD>
     <TD ALIGN="LEFT">Captions</TD><TD ALIGN="RIGHT">12</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.15</TD>
     <TD ALIGN="LEFT">Acceleration of Payments</TD><TD ALIGN="RIGHT">12</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.16</TD>
     <TD ALIGN="LEFT">Reporting and Disclosure Requirements</TD><TD ALIGN="RIGHT">12</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">7.17</TD>
     <TD ALIGN="LEFT">Gender and Number</TD><TD ALIGN="RIGHT">12</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="3">ARTICLE VIII - ADOPTION BY AFFILIATED EMPLOYERS</TD><TD ALIGN="RIGHT">12</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">8.1</TD>
     <TD ALIGN="LEFT">Adoption of Plan</TD><TD ALIGN="RIGHT">12</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">8.2</TD>
     <TD ALIGN="LEFT">Withdrawal from Plan</TD><TD ALIGN="RIGHT">13</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">8.3</TD>
     <TD ALIGN="LEFT">Application of Withdrawal Provisions</TD><TD ALIGN="RIGHT">13</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT"></TD>
     <TD ALIGN="LEFT">8.4</TD>
     <TD ALIGN="LEFT">Plan Sponsor Appointed Agent of Participating Companies</TD><TD ALIGN="RIGHT">13</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="3">APPENDIX A - LIST OF PARTICIPATING COMPANIES</TD><TD ALIGN="RIGHT">14</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="3">PLAN EXHIBIT A - PLAN ADOPTION AGREEMENT</TD><TD ALIGN="RIGHT">15</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="3">PLAN ADOPTION AGREEMENT - PENNSYLVANIA MANUFACTURERS' <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ASSOCIATION INSURANCE COMPANY</TD><TD ALIGN="RIGHT">16</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="3">PLAN ADOPTION AGREEMENT - PMA CAPITAL INSURANCE COMPANY <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(FORMERLY PMA REINSURANCE CORPORATION)</TD><TD ALIGN="RIGHT">17</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="3">PLAN ADOPTION AGREEMENT - CALIBER ONE INDEMNITY COMPANY</TD><TD ALIGN="RIGHT">18</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="3">PLAN ADOPTION AGREEMENT - CALIBER ONE MANAGEMENT COMPANY, INC.</TD><TD ALIGN="RIGHT">19</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="3">PLAN ADOPTION AGREEMENT - PMA MANAGEMENT CORP.</TD><TD ALIGN="RIGHT">20</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="4">&nbsp;</TD></TR>
<TR VALIGN="BOTTOM">
     <TD ALIGN="LEFT" COLSPAN="3">PLAN ADOPTION AGREEMENT - PMA RE MANAGEMENT COMPANY</TD><TD ALIGN="RIGHT">21</TD></TR>
</TABLE>


<P ALIGN="CENTER">-ii- </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<P ALIGN="CENTER"><B>PMA CAPITAL CORPORATION <BR><U>EXECUTIVE MANAGEMENT PENSION PLAN</U></B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>,
some executives hired in mid-career by the PMA Capital Corporation (formerly
known as the Pennsylvania Manufacturers Corporation) (the &#147;Plan
Sponsor&#148;) 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 &#147;Pension Plan&#148;)), due to
the age of the executive when hired (&#147;Short Service Reduction&#148;); and </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>,
Sections 401(a)(17) and 415 of the Internal Revenue Code of 1986, as amended
(the &#147;Code&#148;) place limitations (the &#147;Sections 401(a)(17) and 415
Limitations&#148;) on the retirement benefits which can be paid to participants
in the Pension Plan; and </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>,
the Plan Sponsor established the PMA Capital Corporation Supplemental Executive
Retirement Plan (formerly known as The PMC Supplemental Executive Retirement
Plan) (the &#147;PMA SERP&#148;), 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 (&#147;ERISA&#148;); and </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>WHEREAS</B>,
the Plan Sponsor has decided 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 in a
separate plan to be known as the<B> PMA Capital Corporation Executive Management
Pension </B>Plan (the &#147;Plan&#148;), as set forth herein, and has restated
the PMA SERP to, among other things, reflect the removal from the PMA SERP of
those provisions set forth herein; </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOW
THEREFORE</B>, the Plan Sponsor does hereby adopt the Plan as of January 1,
1999, as hereinafter set forth. </P>

<P ALIGN="CENTER"><B>ARTICLE I &#151;DEFINITIONS</B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following
words and phrases shall have the following meanings unless a different meaning
is plainly required by the context: </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.1</B>
<B><U>Actuarial Equivalent</U></B><U></U>. 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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.2</B>
<B><U>Administrator</U></B><U></U>. The committee (hereinafter referred to as
&#147;Committee&#148;) 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. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.3 <U>Affiliated Employer</U></B>.
A member of a group of employers, of which the Plan Sponsor is a member and which group
constitutes: </P>

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     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
A controlled group of corporations (as defined in Section 414(b) of the Code); </P></TD>
</TR>
</TABLE>
<BR>

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     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
Trades or businesses (whether or not incorporated) which are under common control (as
defined in Section 414(c) of the Code); </P></TD>
</TR>
</TABLE>
<BR>

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     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
Trades or businesses (whether or not incorporated) which constitute an affiliated service
group (as defined in Section 414(m) of the Code); or </P></TD>
</TR>
</TABLE>
<BR>

<P ALIGN="CENTER">-1- </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>
<BR>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.  </P></TD>
</TR>
</TABLE>
<BR>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.4</B>
<B><U>Board of Directors</U>.</B> 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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.5</B>
<B><U>Cause</U>.</B> Termination by a Participating Company of employment with
the Participating Company for &#147;Cause&#148; 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&#146;s part shall be considered &#147;willful&#148;
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&#146;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&#146;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&#146;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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.6</B>
<B><U>Change of Control</U>.</B> 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 &#147;Exchange Act&#148;), 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: </P>

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     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
Any &#147;person&#148;(as such term is used in Sections 13(d) and 14(d) of the Exchange
Act) is or first becomes the &#147;beneficial owner&#148;(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&#146;s voting capital
stock (the &#147;Voting Stock&#148;); or  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
At any time individuals who were either nominated for election by the Plan Sponsor&#146;s
Board of Directors or were elected by the Plan Sponsor&#146;s Board of Directors cease
for any reason to constitute at least a majority of the Plan Sponsor&#146;s Board of
Directors.  </P></TD>
</TR>
</TABLE>
<BR>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.7</B>
<B><U>Code</U></B><U></U>. 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. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.8 <U>Effective Date</U></B>.
January 1, 1999. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.9 <U>Eligible Executive</U></B>.
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. </P>

<P ALIGN="CENTER">-2- </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.10</B>
<B><U>Good Reason</U>.</B> For purposes of this Plan, &#147;Good Reason&#148;
shall mean any of the following events which occurs, following a Change of
Control, without the Participant&#146;s express written consent: </P>

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     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
The assignment to the Participant of any duties materially inconsistent with the
Participant&#146;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&#146;s responsibilities from those in effect
immediately prior to such Change of Control;  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
A reduction by the Participating Company in the Participant&#146;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;  </P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
The Participating Company&#146;s requiring the Participant to be based anywhere other
than the Participant&#146;s office prior to the Change of Control except for required
travel on the Participating Company&#146;s business to an extent substantially consistent
with the Participant&#146;s prior travel obligations;  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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&#146;s participation therein;  </P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
The failure by the Participating Company to continue to provide the Participant with
benefits substantially similar to those provided under the Plan Sponsor&#146;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;  </P></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)
Any purported termination of a Participant&#146;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&#146;s
employment; and for purposes of this Plan, no such purported termination shall be
effective.  </P></TD>
</TR>
</TABLE>
<BR>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.11</B>
<B><U>Participant</U>.</B> An Eligible Executive or former Eligible Executive
who accrues, or who has accrued, benefits under this Plan on and after January
1, 1999. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.12</B>
<B><U>Participating Company</U></B><U></U>. 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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.13</B>
<B><U>Past Service Credit</U></B><U></U>. A Participant&#146;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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.14</B>
<B><U>Past Service Retirement Benefit</U></B><U></U>. A Participant&#146;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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.15</B>
<B><U>Pension Plan</U></B><U></U>. The <B>PMA Capital Corporation Pension
Plan</B> (formerly known as The PMC Pension Plan) as in effect on the Effective
Date and as such plan may be further amended and/or restated from time to time
and </P>

<P ALIGN="CENTER">-3- </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<P ALIGN="LEFT">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.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.16</B>
<B><U>Plan</U>.</B> The <B>PMA Capital Corporation Executive Management Pension
Plan</B> as set forth herein and as it may be amended and/or restated from time
to time. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.17 <U>Plan Sponsor</U></B>. PMA
Capital Corporation, a Pennsylvania corporation. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.18 <U>Plan Year</U></B>. Each
calendar year beginning on January 1 and ending on the following December 31. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.19 <U>PMA SERP</U></B>. The PMA
Capital Corporation Supplemental Executive Retirement Plan, as in effect before January
1, 1999. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.20</B>
<B><U>Section 401(a)(17) Limitation</U>.</B> The limitation on compensation
taken into account under the Pension Plan pursuant to Section 401(a)(17) of the
Code. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.21</B>
<B><U>Section 415 Limitation</U></B><U></U>. The limitation on benefits payable
from the Pension Plan imposed by Section 415 of the Code. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.22</B>
<B><U>Spouse</U>.</B> A person who is married to a Participant and who is
recognized as the Participant&#146;s Spouse for purposes of the Pension Plan. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.23</B>
<B><U>Termination of Employment</U>.</B> A termination of the employer &#151;
employee relationship under circumstances which give rise to a &#147;Separation
from Service&#148; under the Pension Plan. </P>

<P ALIGN="CENTER"><B>ARTICLE II &#151;PAST SERVICE RETIREMENT BENEFITS</B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.1</B>
<B><U>Past Service Credit</U></B><U></U>. A Participant&#146;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&#146;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>i.e.</I>, the Participant&#146;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&#146;s years of Benefit Service credited under the Pension Plan
equal twenty-five (25) years of Benefit Service. If the sum of a
Participant&#146;s Past Service Credit under the Plan on and after January 1,
1999, the PMA SERP before January 1, 1999, and such Participant&#146;s years of
Benefit Service under the Pension Plan is greater than twenty-five (25), such
Participant&#146;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.) </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.2</B>
<B><U>Past Service Retirement Benefit</U></B><U></U>. Subject to Sections 2.3
and 7.2 hereof, a Participant&#146;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&#146;s benefit under
Article V of the Pension Plan at the time such benefit becomes payable but using
only the Participant&#146;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: </P>

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<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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&#146;s
annual rate of pay as in effect on  </P></TD>
</TR>
</TABLE>
<BR>

<P ALIGN="CENTER">-4- </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">the Participant&#146;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  </P></TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
The Section 415 Limitation contained in Article XI of the Pension Plan shall not be taken
into account.  </P></TD>
</TR>
</TABLE>
<BR>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.3</B>
<B><U>Reemployment</U></B><U></U>. 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. </P>

<P ALIGN="CENTER"><B>ARTICLE III &#151;VESTING OF PAST SERVICE RETIREMENT BENEFITS</B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.1</B>
<B><U>Full Vesting</U></B><U></U>. 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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.2</B>
<B><U>Forfeitures</U>.</B> Any amount forfeited hereunder by a Participant
pursuant to Section 3.1 shall constitute a reduction of the Participating
Company&#146;s liability under the Plan and/or PMA SERP and shall not be
allocated to the remaining Participants. </P>

<P ALIGN="CENTER"><B>ARTICLE IV &#151;FORM OF PAYMENT OF PAST SERVICE RETIREMENT BENEFITS</B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.1</B>
<B><U>Payment of Past Service Retirement Benefit</U></B><U></U>. Except as
otherwise provided in Sections 4.3 and 7.2 hereof, a Participant&#146;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&#146;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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.2</B>
<B><U>Form of Payment</U></B><U></U>. The normal form of payment of a
Participant&#146;s Past Service Retirement Benefit shall be the same as that
provided under the Pension Plan. Subject to Section 4.5 hereof, a
Participant&#146;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&#146;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&#146;s request for a different method of payment than specified
herein. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.3</B>
<B><U>Change of Control During Employment</U></B><U></U>. 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&#146;s employment for
other than Cause, or if the Participant shall </P>

<P ALIGN="CENTER">-5- </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<P ALIGN="LEFT">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&#146;s Past Service Retirement Benefit. The
Participant&#146;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&#146;s Past Service Retirement
Benefit <B><I>using the assumptions for determining Actuarial Equivalence provided under
the Pension Plan for determining lump sum distributions</I></B><I></I>. 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.  </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.4</B>
<B><U>Change of Control During Retirement</U>.</B> 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&#146;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&#146;s remaining benefit under this Plan<B><I> using the
assumptions for determining Actuarial Equivalence provided under the Pension
Plan for determining lump sum distributions</I></B><I></I>. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.5</B>
<B><U>Failure to Assume Plan upon Change of Control</U>.</B> 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&#146;s Past Service Retirement Benefit. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.6.</B>
<B><U>Actuarial Equivalent</U></B><U></U>. A Past Service Retirement Benefit
which is payable in any form other than the normal form under the Pension Plan,
<I>i.e.</I>, a straight life annuity over the lifetime of the Participant, or
which commences at any time prior to the Participant&#146;s Normal Retirement
Date, shall be the Actuarial Equivalent of the Past Service Retirement Benefit
payable hereunder <B><I>using the assumptions for determining Actuarial
Equivalence provided under the Pension Plan for making a comparable
determination.</I></B><I></I>. </P>

<P ALIGN="CENTER"><B>ARTICLE V &#151;DEATH BENEFIT</B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.1</B>
<B><U>Death Benefit</U></B><U></U>. 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&#146;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. </P>

<P ALIGN="LEFT">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&#146;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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>5.2</B>
<B><U>Simultaneous Death</U></B><U></U>. 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. </P>

<P ALIGN="CENTER"><B>ARTICLE VI &#151;ADMINISTRATION OF THE PLAN</B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.1</B>
<B><U>Administrator</U>.</B> 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  </P>

<P ALIGN="CENTER">-6- </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

     <P ALIGN="LEFT">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. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.2 <U>Committee Action</U></B>. If
a Committee is appointed as Administrator, the following rules apply: </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.  </P></TD>
</TR>
</TABLE>
<BR>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.3</B>
<B><U>Powers of Administrator</U>.</B> 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: </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
Make use of the services of the employees of the Participating Company in administrative
matters. </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)
Remedy any inequity from incorrect information received or communicated or from
administrative error. </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)
Commence or defend any litigation arising from the operation of the Plan in any legal or
administrative proceeding. </P></TD>
</TR>
</TABLE>
<BR>

<P ALIGN="CENTER">-7- </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
To determine all considerations affecting the eligibility of any Employee to become a
Participant or remain a Participant in the Plan; </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)
To determine the status and rights of Participants and their Spouses, beneficiaries or
estates; </P></TD>
</TR>
</TABLE>
<BR>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.4</B>
<B><U>Decisions of Administrator</U></B><U></U>. 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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.5</B>
<B><U>Administrative Expenses</U>.</B> 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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.6</B>
<B><U>Eligibility to Participate</U>.</B> 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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.7</B>
<B><U>Insurance and Indemnification for Liability</U></B><U></U>. The rules
relating to the insurance and indemnification for liability are as follows: </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
<B><U>Insurance.</U></B><U></U>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.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
<B><U>Indemnity</U>.</B>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.  </P></TD>
</TR>
</TABLE>
<BR>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.8</B>
<B><U>Agent for Service of Legal Process</U>.</B> The Administrator shall be the
designated agent for the service of legal process with respect to any matter
concerning the Plan. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.9</B>
<B><U>Delegation of Responsibility</U>.</B> 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. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.10 <U>Claims Procedure</U></B>. </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
<B><U>Claim for Benefits</U>.</B>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 &#147;Claims
Coordinator&#148;.  </P></TD>
</TR>
</TABLE>
<BR>

<P ALIGN="CENTER">-8- </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>
<BR>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&#146;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&#146;s claims review procedure as set forth in this Section 6.10.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
no action is taken by the Claims Coordinator on an applicant&#146;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.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
<B><U>Appeals Procedure</U>.</B>Any applicant whose claim for benefits is denied in whole
or in part (&#147;Claimant&#148;) 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:  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="9%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
Request a review by the Administrator of the claim for benefits under the Plan; </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="9%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)
Set forth all of the grounds upon which the Claimant's request for review is based and
any facts in support thereof; and </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="9%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)
Set forth any issues or comments which the Claimant deems pertinent to the appeal. </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&#146;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.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
the basis of its review, the Administrator shall make an independent determination of the
Claimant&#146;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.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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&#146;s decision was based.  </P></TD>
</TR>
</TABLE>
<BR>

<P ALIGN="CENTER">-9- </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
<B><U>Compliance with Regulations</U>.</B>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 &sect;&nbsp;2560.503-1.  </P></TD>
</TR>
</TABLE>
<BR>

<P ALIGN="CENTER"><B>ARTICLE VII &#151;MISCELLANEOUS</B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.1</B>
<B><U>Funding</U></B><U></U>. 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&#146;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. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.2 <U>Amendment or
Termination</U></B>. </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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&#146;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.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
If the Plan is terminated, a determination shall be made of each Participant&#146;s Past
Service Retirement Benefit as of the Plan termination date. The amount of a Participant&#146;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&#146;s Past
Service Retirement Benefit as of the Plan termination date.  </P></TD>
</TR>
</TABLE>
<BR>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.3</B>
<B><U>Status of Employment</U>.</B> 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&#146;s right to terminate his/her employment at any time. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.4</B>
<B><U>Payments to Minors and Incompetents</U></B><U></U>. 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. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.5 <U>Inalienability of
Benefits</U></B>. </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 </P></TD>
</TR>
</TABLE>
<BR>

<P ALIGN="CENTER">-10- </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">any manner be liable for, or subject to, the debts, contracts, liabilities,
engagements or torts of any person entitled to benefits under the Plan.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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&#146;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.  </P></TD>
</TR>
</TABLE>
<BR>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.6</B>
<B><U>Governing Law</U>.</B> 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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.7</B>
<B><U>Severability</U></B><U></U>. 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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.8</B>
<B><U>Required Information to Administrator</U></B><U></U>. 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&#146;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: </P>

<P ALIGN="CENTER"><B>Plan Administrator<BR>PMA Capital Corporation<BR>1735 Market Street, 27th Floor<BR>
Philadelphia, PA 19103</B> </P>

<P ALIGN="LEFT">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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.9</B>
<B><U>Income and Payroll Tax Withholding</U></B><U></U>. 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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.10</B>
<B><U>Application of Plan</U></B><U></U>. The Plan, as set forth herein, shall
apply to any Participant terminating employment on or after the Effective Date. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.11</B>
<B><U>No Effect on Other Benefits</U></B><U></U>. 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&#146;s regular compensation structure. </P>


<P ALIGN="CENTER">-11- </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.12</B>
<B><U>Inurement</U></B><U></U>. 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&#146;s Spouse, beneficiaries, successors,
heirs, executors and administrators. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.13</B>
<B><U>Notice</U></B><U></U>. 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&#146;s last known address as
shown on the Participating Company&#146;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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.14</B>
<B><U>Captions</U></B><U></U>. 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. </P>

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

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.16</B>
<B><U>Reporting and Disclosure Requirements</U></B><U></U>. In order to comply
with the requirements of Title I of ERISA, the Administrator shall: </P>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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. ss. 2520.104-23. </P></TD>
</TR>
</TABLE>
<BR>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.17</B>
<B><U>Gender and Number</U>.</B> 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 <I>vice</I> <I>versa</I>. </P>

<P ALIGN="CENTER"><B>ARTICLE VIII &#151;ADOPTION BY AFFILIATED EMPLOYERS</B> </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.1</B>
<B><U>Adoption of Plan</U></B><U></U>. The following rules shall apply with
respect to the adoption of the Plan: </P>

<P ALIGN="CENTER">-12- </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>
<BR>
<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
<B><U>Adoption by Affiliated Employers</U></B>. The terms of this Plan may be adopted by any Affiliated
Employer, provided: </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="9%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
The Board of Directors consents to such adoption by an appropriate written resolution; </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="9%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)
The board of directors of the Affiliated Employer adopts this Plan by an appropriate
written resolution which identifies the Eligible Executives;  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="9%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)
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  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="9%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.  </P></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="6%">&nbsp;</TD>
     <TD><P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
<B><U>Effect of Adoption</U></B>. An Affiliated Employer that adopts the Plan is thereafter a
Participating Company with respect to its Eligible Executives. </P></TD>
</TR>
</TABLE>
<BR>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.2</B>
<B><U>Withdrawal from Plan</U>.</B> 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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.3</B>
<B><U>Application of Withdrawal Provisions</U>.</B> 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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.4</B>
<B><U>Plan Sponsor Appointed Agent of Participating Companies</U>.</B> 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. </P>

     <P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>TO RECORD</B>
the adoption of this Plan, the Plan Sponsor on behalf of itself and each other
Participating Company has caused this document to be executed by its duly
authorized officers as of the 7th day of March, 2001. </P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="TOP">
     <TD WIDTH="45%"><B>ATTEST:</B></TD>
     <TD WIDTH="8%"></TD>
     <TD WIDTH="47%"><B>PMA CAPITAL CORPORATION</B></TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD><B>[SEAL]</B></TD>
     <TD></TD>
     <TD></TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD>/s/ Robert L.  Pratter<BR><HR NOSHADE SIZE="1" WIDTH="100%"></TD>
     <TD></TD>
     <TD>By:&nbsp;/s/ Francis W. McDonnell  <BR><HR NOSHADE SIZE="1" WIDTH="93%" ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP">
     <TD>Robert L.  Pratter, Secretary</TD>
     <TD></TD>
     <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Francis W. McDonnell, Senior Vice President,</TD></TR>
<TR VALIGN="TOP">
     <TD></TD>
     <TD></TD>
     <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasurer &amp; Chief Financial Officer</TD></TR>
</TABLE>

<P ALIGN="CENTER">-13- </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>

<P ALIGN="CENTER"><B>APPENDIX A &#151;LIST OF PARTICIPATING COMPANIES</B> </P>

<P ALIGN="LEFT">(a)&nbsp;&nbsp;&nbsp; <B>PMA Capital Corporation</B> </P>

<P ALIGN="LEFT">(b)&nbsp;&nbsp;&nbsp; <B>Pennsylvania Manufacturers&#146;Association Insurance Company</B> </P>

<P ALIGN="LEFT">(c)&nbsp;&nbsp;&nbsp; <B>PMA Capital Insurance Company (formerly PMA Reinsurance Corporation)</B> </P>

<P ALIGN="LEFT">(d)&nbsp;&nbsp;&nbsp; <B>Caliber One Indemnity Company</B> </P>

<P ALIGN="LEFT">(e)&nbsp;&nbsp;&nbsp; <B>Caliber One Management Company, Inc.</B> </P>

<P ALIGN="LEFT">(f)&nbsp;&nbsp;&nbsp; <B>PMA Management Corp.</B> </P>

<P ALIGN="LEFT">(g)&nbsp;&nbsp;&nbsp; <B>PMA Re Management Company</B> </P>


<P ALIGN="CENTER">-14- </P>

<HR ALIGN=LEFT WIDTH=100% SIZE=1 NOSHADE>


<P ALIGN="CENTER"><B>PLAN EXHIBIT A &#151;PLAN ADOPTION AGREEMENT</B> </P>

<P ALIGN="CENTER"><B>[Insert Name of Adopting Affiliated Employer]</B> </P>

<P ALIGN="CENTER"><B>PMA CAPITAL CORPORATION EXECUTIVE MANAGEMENT PENSION PLAN</B> </P>

<P ALIGN="LEFT"><B><I>[NOTE: Plan Exhibit A is not to be completed or executed. If
an Affiliated Employer adopts the Plan, a separate instrument following the form
of this Plan Exhibit A shall be completed and filed with the</I></B><I>
<B>Administrator.]</B></I> </P>

<P ALIGN="LEFT">By executing this Adoption Agreement, <B>[<U> NAME OF ADOPTING
AFFILIATED EMPLOYER</U>]</B>, on this ______ day of __________, 20___ hereby
adopts the <B>PMA CAPITAL CORPORATION</B> <B>EXECUTIVE MANAGEMENT PENSION
PLAN</B> (&#147;Plan&#148;), the terms of which Plan are incorporated herein by
reference, and by adopting said Plan hereby becomes a Participating Company in
said Plan effective __________, 20___. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Effective Date of
the Plan hereby created or continued is __________, 20__. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Board of Directors
of <B>PMA CAPITAL CORPORATION</B> consented to the adoption of the Plan by the Affiliated
Employer named herein on __________, 20__. </P>

<P ALIGN="LEFT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Board of Directors
of <B>[<U>NAME OF ADOPTING AFFILIATED EMPLOYER</U>]</B> adopted the Plan on __________, 20__. </P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR VALIGN="TOP">
     <TD WIDTH="45%"><B>Attest:</B></TD>
     <TD WIDTH="10%"></TD>
     <TD WIDTH="45%" ALIGN="LEFT">Name of Participating Company</TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD><B>[SEAL]</B></TD>
     <TD></TD>
     <TD></TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD><BR><HR NOSHADE SIZE="1" WIDTH="100%"></TD>
     <TD></TD>
     <TD>By<BR><HR NOSHADE SIZE="1" WIDTH="90%" ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT">Secretary</TD>
     <TD></TD>
     <TD ALIGN="CENTER">President</TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="LEFT"><B>Attest:</B></TD>
     <TD></TD>
     <TD ALIGN="LEFT"><B>ADOPTION CONSENTED TO BY:<BR>PMA CAPITAL CORPORATION</B></TD></TR><TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD><B>[SEAL]</B></TD>
     <TD></TD>
     <TD></TD></TR>
<TR VALIGN="TOP">
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD>
     <TD>&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD><BR><HR NOSHADE SIZE="1" WIDTH="100%"></TD>
     <TD></TD>
     <TD>By<BR><HR NOSHADE SIZE="1" WIDTH="90%" ALIGN="RIGHT"></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="CENTER">Secretary</TD>
     <TD></TD>
     <TD ALIGN="CENTER">President</TD></TR>
</TABLE>

<P ALIGN="CENTER">-15- </P>

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