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| TABLE OF CONTENTS                                  |
|----------------------------------------------------|
|                                               |   | PAGE |
|                                               |   |   |
| ARTICLE I INTRODUCTION                             |   | 3 |
|                                               |   |   |
| Section 1.1                                        | Purpose | 3 |
| Section 1.2                                        | Effective Date; Plan Year | 3 |
| Section 1.3                                        | Administration | 3 |
| Section 1.4                                        | Affiliates | 3 |
| Section 1.5                                        | Supplements | 3 |
| Section 1.6                                        | Definitions | 4 |
|                                               |   |   |
| ARTICLE II ELIGIBILITY AND PARTICIPATION           | 4 |
|                                               |   |   |
| Section 2.1                                        | Eligibility | 4 |
| Section 2.2                                        | Participation | 5 |
|                                               |   |   |
| ARTICLE III CONTRIBUTIONS AND ALLOCATIONS          | 5 |
|                                               |   |   |
| Section 3.1                                        | Employee Deferral Contributions | 5 |
| Section 3.2                                        | Deferral Elections | 5 |
| Section 3.3                                        | Matching Contributions | 7 |
| Section 3.4                                        | Supplemental Contributions | 8 |
| Section 3.5                                        | Non-elective Contributions | 8 |
| Section 3.6                                        | Limitation on Contributions | 9 |
| Section 3.7                                        | Plan Account | 9 |
| Section 3.8                                        | Investment Credits | 9 |
| Section 3.9                                        | Account Allocations | 9 |
| Section 3.10                                       | Allocation of Forfeitures | 9 |
| Section 3.11                                       | Military Service | 9 |
|                                               |   |   |
| ARTICLE IV BENEFIT PAYMENTS                        |   | 10 |
|                                               |   |   |
| Section 4.1                                        | Time of Payment of Benefits | 10 |
| Section 4.2                                        | Method of Payment | 12 |
| Section 4.3                                        | Method of Payment Elections | 13 |
| Section 4.4                                        | Disability and Death | 14 |
| Section 4.5                                        | Unforeseeable Emergency | 14 |
| Section 4.6                                        | Change in Control | 15 |
| Section 4.7                                        | Acceleration of Time of Payment | 17 |
|                                               |   |   |
| ARTICLE V PLAN ADMINISTRATION                      |   | 17 |
|                                               |   |   |
| Section 5.1                                        | Appointment of the Committee | 17 |
| Section 5.2                                        | Powers and Responsibilities of the Committee | 18 |
| Section 5.3                                        | Liabilities. | 18 |
| Section 5.4                                        | Income and Employment Tax Withholding | 18 |
|                                               |   |   |
| ARTICLE VI BENEFIT CLAIMS                          |   | 19 |
|                                               |   |   |
| ARTICLE VII FUNDING AND TRANSFERS                  | 19 |
|                                               |   |   |
| Section 7.1                                        | Unfunded Status | 19 |
| Section 7.2                                        | Trust. | 19 |
|                                               |   |   |
| ARTICLE VIII AMENDMENT AND TERMINATION OF THE PLAN | 19 |
|                                               |   |   |
| Section 8.1                                        | Amendment of the Plan | 19 |
| Section 8.2                                        | Termination of the Plan | 20 |
|                                               |   |   |
| ARTICLE IX PARTICIPATION BY AFFILIATES             | 20 |
|                                               |   |   |
| Section 9.1                                        | Affiliate Participation | 20 |
| Section 9.2                                        | First Merchants Corporation Action Binding on Other Employers | 20 |
|                                               |   |   |
| ARTICLE X MISCELLANEOUS                            |   | 20 |
|                                               |   |   |
| Section 10.1                                       | Governing Law | 20 |
| Section 10.2                                       | Headings and Gender | 20 |
| Section 10.3                                       | Spendthrift Clause | 20 |
| Section 10.4                                       | Counterparts | 21 |
| Section 10.5                                       | No Enlargement of Employment Rights | 21 |
| Section 10.6                                       | Limitations on Liability | 21 |
| Section 10.7                                       | Incapacity of Participant or Beneficiary | 21 |
| Section 10.8                                       | Evidence | 21 |
| Section 10.9                                       | Action by Company or Committee | 21 |
| Section 10.10                                      | Severability | 21 |
| Section 10.11                                      | Information to be Furnished by a Participant | 21 |
| Section 10.12                                      | Binding on Successors | 22 |

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| Term                                                                                                                                                                                                                                                                                                                                                                                                                                                                | Plan Section |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|
| 401(k) Plan                                                                                           | 1.1          |
| Acceleration Event                                                                                    | 4.7          |
| Account                                                                                               | 3.7          |
| Accounting Date                                                                                       | 3.9          |
| Adverse Benefit Determination                                                                         | A-3          |
| Affiliate                                                                                             | 1.4          |
| Benefit Claim                                                                                         | A-1          |
| Board                                                                                                 | 1.3          |
| Claimant                                                                                              | A-1          |
| Code                                                                                                  | 1.1          |
| Committee                                                                                             | 1.3          |
| Company                                                                                               | 1.1          |
| Compensation                                                                                          | 3.1          |
| Disabled                                                                                              | 4.4(b)       |
| Effective Date                                                                                        | 1.2          |
| Employee Deferral Contributions                                                                       | 3.1          |
| ERISA                                                                                                 | 1.1          |
| Identification Date                                                                                   | 4.1(d)       |
| Key Employee                                                                                          | 4.1(d)       |
| Matching Contributions                                                                                | 3.3(c)       |
| Non-elective Contributions                                                                            | 3.5          |
| Normal Retirement Age                                                                                 | 3.3(d)       |
| Participant                                                                                           | 2.2          |
| Plan                                                                                                  | 1.1          |
| Plan Year                                                                                             | 1.2          |
| Separation from Service                                                                               | 4.1(b)       |
| Service                                                                                               | 3.3(d)       |
| Specified Employee                                                                                    | 4.1(d)       |
| Supplemental Contributions                                                                            | 3.4          |
| Termination of Employment                                                                             | 4.1(b)       |
| Unforeseeable Emergency                                                                               | 3.2(f)       |

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| (a)   | Requirement for Deferral Elections.  As a condition to the Company’s or an Affiliate’s obligation to withhold and the Committee’s obligation to credit Employee Deferral Contributions for the benefit of a Participant pursuant to Section 3.1, the Participant must complete and file a deferral election form with the Committee (in a format prescribed by the Committee). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Timing of Execution and Delivery of Elections.  To be effective to defer any portion of a Participant’s Compensation, a deferral election form must be filed with the Committee on or prior to the last day of the calendar year preceding the Plan Year in which the services giving rise to the Compensation are performed.  For example, to defer Compensation payable with respect to services performed during the 2012 Plan Year, an election must be filed on or before December 31, 2011. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (c)   | Maximum Deferral.  For Plan Years beginning on and after January 1, 2011, the Participant may elect to defer as an Employee Deferral Contribution for a Plan Year up to 75 percent of the Participant’s Compensation.  For purposes of calculating the percentage a Participant may defer under the Plan, the percentage of Compensation a Participant defers under the 401(k) Plan will count toward the 75 percent limitation.  For example, a Participant defers 10 percent of her Compensation under the 401(k) Plan which means she can defer up to 65 percent of her Compensation under thePlan. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Initial Eligibility.  In the case of the first Plan Year in which an individual becomes a Participant, the deferral election form may be filed with the Committee at any time within 30 days of the date the individual becomes a Participant (rather than the date specified under subsection 3.2(b)).  This initial election will only apply to Compensation paid for services performed after the filing of the deferral election form.  This special initial eligibility election rule will not apply if the Participant is or has been a participant in a deferred compensation arrangement required to be aggregated with the Plan under the rules of Code Section409A. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Change of Deferral Elections.  Subject to the provisions of subsection 3.2(f), once made, a deferral election will remain in effect for a Plan Year unless and until the election is revoked or a new election filed.  The revocation or new election must be filed in accordance with the requirements of subsection 3.2(b).  No deferral election may be changed for Compensation payable for a Plan Year after the last day of the election period described in subsection 3.2(b).  For example, except as provided in Section 3.2(b), any election in place for 2012 Compensation may not be changed after December 31, 2011. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | Unforeseeable Emergency.  The Committee, in its sole discretion, may cancel a Participant’s election to defer Compensation if the Committee determines the Participant has suffered an “Unforeseeable Emergency.”  The cancellation will apply to the period after the Committee’s determination.  The Participant must submit a signed statement of the facts causing the severe financial hardship and any other information required by the Committee, in its sole discretion.  An “Unforeseeable Emergency” is a severe financial hardship of the Participant or beneficiary resulting from: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | an illness or accident of the Participant or beneficiary, the Participant’s or beneficiary’s spouse, or the Participant’s or beneficiary’s dependent (as defined in Code Section 152(a)); |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | loss of the Participant’s or beneficiary’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance, for example, not as a result of a natural disaster); |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (iii)   | imminent foreclosure of or eviction from the Participant’s primary residence; the need to pay for medical expenses, including non-refundable deductibles, as well as for the costs of prescription drug medication; the need to pay for the funeral expenses of a spouse or a dependent (as defined in Code Section 152(a)) or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant or beneficiary.  An Unforeseeable Emergency will be deemed to occur if a Participant receives a hardship withdrawal from the 401(k) Plan pursuant to Code Section 401(k) and Treasury Regulation Section 1.401(k)-1(d)(3). |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | Amount of Matching Contribution.  The Company and its Affiliates may, as determined by the Committee in its sole discretion, make “Matching Contributions” to Participants’ Accounts each Plan Year, in an amount equal to 50 percent of a Participant’s deferrals under the Plan up to six percent of Compensation, for a maximum Matching Contribution of three percent.  In order for a Participant to receive a Matching Contribution, he or she must have made sufficient pre-tax contributions under the 401(k) Plan to be entitled to the maximum matching Company contribution under the 401(k) Plan for that year. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Allocation of Matching Contribution. Any Matching Contributions made under subsection 3.3(a) for a Plan Year will be allocated and credited to Participants’ Accounts according to the Employee Deferral Contributions credited under Section 3.1 for the Plan Year. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Timing of Contribution.  A Matching Contribution contributed for the benefit of a Participant for a Plan Year will be credited to a Participant’s Account at the same time as Matching Contributions are contributed to a Participant’s account under the 401(k) Plan. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Vesting of Matching Contribution.  Upon the Participant’s attainment of “Normal Retirement Age” (attainment of age 65 years and five years of participation in the 401(k) Plan), death or Disability (as defined in subsection 4.4(b)), all Matching Contributions shall be 100 percent vested.  Prior to the occurrence of one of the foregoing, Matching Contributions shall become vested in accordance with the following schedule based on years of Service as of the date of determination: |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Years of Service |   | Vested Percentage |
|------------------|--------|-------------------|
| less than 5      |   | 0%                |
| 5 or more        |   | 100%              |

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| (a)   | Amount of Contribution.  The Company may, but is not required to, credit to a Participant’s Account such amount as the Committee may in its discretion determine from time to time, which amount will constitute a Supplemental Contribution under the Plan. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Timing of Contribution.  A Supplemental Contribution may be credited to a Participant’s Account at any time. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Vesting of Supplemental Contribution.  Upon the Participant’s attainment of Normal Retirement Age, death or Disability (as defined in subsection4.4(b)), all Supplemental Contributions shall be 100 percent vested.  Prior to the occurrence of one of the foregoing, Supplemental Contributions shall be determined in accordance with the following schedule based on years of Service as of the date of determination: |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Years of Service  |   | Vested Percentage |
|-------------------|--------|-------------------|
| Less than 3 years |   | 0%                |
| 3 years or more   |   | 100%              |

| (a)   | Amount of Non-elective Contribution.  For each Plan Year in which a Participant’s compensation deferrals and related matching contributions under the 401(k) Plan must be refunded to him or her in accordance with the Code’s limitations, the refunded amounts will be transferred to the Participant’s Account as a “Non-elective Contribution.” |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Timing of Contribution.  Non-elective Contributions will be credited to Participants’ Accounts on the day the compensation deferral and matching contributions are refunded to participants in the 401(k) Plan. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Vesting of Non-elective Contributions.  A Participant will be 100 percent vested in his or her Non-elective Contributions at all times. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

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| (i)   | Increased by the amount credited to the Account under Sections3.1, 3.3 and 3.4 since the last accounting; |
|-----------------|-----------------------------------------------------------------------------------------------------------|

| (ii)   | Increased or decreased by the amount determined under Section 3.8 since the last accounting; and |
|------------------|--------------------------------------------------------------------------------------------------|

| (iii)   | Decreased by any payment made under Article IV. |
|-------------------|-------------------------------------------------|

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| (a)   | Timing of Execution and Delivery of Payment Election.  A Participant may elect the date his vested Account balance will be paid or will begin to be paid by completing and filing with the Committee a payment election form approved by the Committee.  The specified date must be a date at least two years from the beginning of the Plan Year for which the first deferral under the Plan is made.  To be effective, the election under this Section must be filed with the Committee at the time the Participant first makes a deferral election under this Plan (or under any other plan required to be aggregated with this Plan pursuant to the requirements of CodeSection 409A).  In lieu of specifying a date certain, a Participant may elect to have payment made or commenced within a specified period of time following the date the Participant experiences a Separation from Service (as defined in subsection 4.1(b)).  If no date is specified, payment will be made or commenced within 90 days following the Participant’s Separation from Service. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Separation from Service.  “Separation from Service” means the date on which the Participant dies, retires or otherwise experiences a Termination of Employment with the Company.  Provided, however, a Separation from Service does not occur if the Participant is on military leave, sick leave, or other bona fide leave of absence (such as temporary employment by the government) if the period of such leave does not exceed six months, or if the leave is for a longer period, so long as the individual’s right to reemployment with the Company is provided either by statute or by contract.  If the period of leave exceeds six months and theParticipant’s right to reemployment is not provided either by statute or contract, there will be a Separation from Service on the first date immediately following such six-month period.  A Participant will incur a “Termination of Employment” when a termination of employment is incurred under Treasury Regulation Section 1.409A-1(h)(ii). |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Change of Payment Election.  An election as to the date payment will be made or commenced may be changed by a Participant by filing a new payment election form with the Committee; provided, however, that: (i) the new election will not take effect until at least 12 months after the date the new election is filed, (ii) the single lump-sum payment or the commencement of installment payments will be delayed for a period of not less than five years from the date the payment or first payment would otherwise have been made, and (iii) the new election is filed with the Committee at least 12 months prior to the date of the first scheduled payment under thePlan. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Suspension of Payments to Specified Employees.  If a benefit is payable to a Participant under the Plan due to the Participant’s Separation from Service, for any reason other than death, and if at the time of the Separation from Service the Participant is a “Specified Employee,” payment of all amounts to the Participant under the Plan will be suspended for six months following the Participant’s Separation from Service.  If the Participant elected to receive payment of his benefit in the form of installments, payment of any installments that the Participant was otherwise entitled to receive during the six-month suspension period willbe accumulated and paid in the form of a lump sum on the first day following the six-month suspension period.  The remainder of the Participant’s benefit will then continue distribution in the manner and at the time elected by the Participant.  If the Participant elected to receive payment of his benefit in the form of a lump sum, he will receive payment of that amount on the first day following the six-month suspension period.  If the Participant incurs a Separation from Service due to death, regardless of whether the Participant meets the definition of a Specified Employee, payment of his benefit will not be suspended. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | A “Specified Employee” means a Participant who is a “Key Employee” at a time when the Company’s stock is publicly traded on an established securities market.  A Participant will be a Specified Employee on the first day of the fourth month following any Identification Date on which the Participant is a Key Employee. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | A Participant is a “Key Employee” if at any time during the 12-month period ending on an “Identification Date” the Participant is: (A) an officer of the Company or an Affiliate having annual compensation greater than $160,000; (B) a five-percent owner of the Company; or (C) a one-percent owner of the Company having an annual compensation greater than $150,000.  For purposes of determining whether a Participant is an officer under clause (A), nor more than 50 employees (or, if lesser, the greater of 3 or 10 percent of the employees) will be treated as officers, and those categories of employees listed in Code Section 414(q)(5) will be excluded. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (iii)   | The Identification Date for purposes of this Plan is December 31 of each Plan Year. |
|-------------------|-------------------------------------------------------------------------------------|

| (a)   | A single lump sum payment; |
|-----------------|----------------------------|

| (b)   | Annual installment payments over a period of 2 to 10 years; or |
|-----------------|----------------------------------------------------------------|

| (c)   | A combination of the methods specified in subsections (a) and (b). |
|-----------------|--------------------------------------------------------------------|

| (a)   | Initial Election.  A Participant may elect the method in which his vested Account balance will be paid to him under Section 4.2 in accordance with the terms and conditions of this Section.  To make an election, a Participant must file an election with the Committee (on a form or forms prescribed by the Committee).  To be effective, the election under this Section must be filed with the Committee at the time the Participant first makes a deferral election under the Plan (or under any other plan required to be aggregated with this Plan pursuant to the requirements of Code Section 409A).  If no election is made or if the election is nottimely or properly made, distribution will be made in a lump sum payment. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Change of Method of Payment Election.  An election as to the manner of payment may not be changed after the payment has been made or payments have commenced.  Prior to that time, a Participant may change his election by filing a new election form with the Committee; provided, however, that: (i) the new election will not take effect until at least 12 months after the date the new election is filed; (ii) the single lump sum payment or the commencement of installment payments with respect to which such election is made must be deferred for a period of not less than five years from the date such payment would otherwise have been made; and (iii) the newelection is filed at least 12 months prior to the date of the first scheduled payment under the Plan. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Installments.  If installment distributions are elected, the initial annual installment amount will be the Account balance otherwise payable in a single sum multiplied by a fraction, the numerator of which is one and the denominator of which is the total number of installment payments.  Subsequent annual installments will also be a fraction of the unpaid Account balance, the numerator of which is always one but the denominator of which is the denominator used in calculating the previous installment minus one.  For example, if five annual installment payments are elected, the initial installment will be one-fifth of the vested single sum Accountbalance, the second installment will be one-fourth of the remaining vested Account balance and the third installment will be one-third of the remaining vested Account balance, and so on. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (a)   | Beneficiary Designations.  A Participant may designate a beneficiary or beneficiaries to receive any amount payable under this Section as a result of his death.  A Participant may change his designation of beneficiaries at any time by filing with the Committee a written notice of the change on a form approved by the Committee.  Each beneficiary designation filed with the Committee will cancel all previously filed beneficiary designations.  If no designation is in effect on the Participant’s death, or if the designated beneficiary does not survive the Participant, his beneficiary will be his surviving spouse, if any, and then hisestate. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Disability.  A Participant incurs a “Disability” or is “Disabled” for purposes of the Plan if the Participant in question is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.  A Participant who, by reason of any medically determinable physical or mental impairment that can be expected to result in death or last for a continuous period of not less than 12 months, is receivingincome replacement benefits for a period of not less than three months under an accident and health plan sponsored by an Employer will be deemed to be Disabled.  The Committee will be the sole and final judge of whether a Participant is Disabled for purposes of this Plan, after consideration of any evidence it may require, including the reports of any physician or physicians it may designate. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | The emergency must not be able to be relieved through reimbursement or compensation from insurance or otherwise, by liquidation of the Participant’s assets, to the extent liquidation of such assets would not cause severe financial hardship, or by cessation of deferrals under this Plan. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (b)   | The amount of the distribution must be limited to the amount reasonably necessary to satisfy the emergency need (which may include amounts necessary to pay any Federal, state, or local income taxes or penalties reasonably anticipated to result from the distribution) and must take into account any additional compensation available due to cancellation of a deferral election under subsection 3.2(f). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | Definition of Change in Control:  A Change in Control occurs when there is a change in ownership as described in (i), a change in effective control as described in (ii) or a change in the ownership of a substantial portion of the Company’s assets as described in (iii). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | Change in Ownership.  A change in the ownership of the Company occurs on the date that any person, or group of persons, as defined in subparagraph (b), acquires ownership of stock of the Company that, together with stock held by the person or group, constitutes more than 50 percent of the total fair market value or total voting power of the stock. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A)   | However, if any person or group is considered to own more than 50 percent of the total fair market value or total voting power of the stock, the acquisition of additional stock by the same person or group is not considered to cause a change in the ownership of the Company. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B)   | An increase in the percentage of stock owned by any person or group, as a result of a transaction in which the Company acquires its stock in exchange for property will be treated as an acquisition of stock. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | Change in the Effective Control.  A change in the effective control of the Company will occur when: |
|------------------|---------------------------------------------------------------------------------------------------------------|

| (A)   | Any person or group, acquires, or has acquired during the twelve-month period ending on the date of the most recent acquisition by such person(s), ownership of stock of the Company possessing 35 percent or more of the total voting power; or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B)   | A majority of members of the Board is replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the appointment or election. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (iii)   | Change in the Ownership of a Substantial Portion of the Company’s Assets.  A change in the ownership of a substantial portion of the Company’s assets occurs on the date that any person or group acquires, or has acquired during the 12-month period ending on the date of the most recent acquisition by such person(s), assets from the Company that have a total gross fair market value equal to or more than 40 percent of the total gross fair market value of all of the assets immediately prior to such acquisition(s). |
|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (A)   | Gross fair market value means the value of the assets of the Company, or the value of the assets being disposed of, determined without regard to any liabilities associated with such assets. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (B)   | However, there is no Change in Control under this subparagraph when there is a transfer to an entity that is controlled by the shareholders of the Company immediately after the transfer.  A transfer of assets by the Company is not treated as a change in the ownership of such assets if the assets are transferred to: (i) a shareholder of the Company (immediately before the asset transfer) in exchange for or with respect to its stock; (ii) an entity, 50 percent or more of the total value or voting power of which is owned, directly or indirectly, by the Company; (iii) a person, or group of persons, that owns, directly or indirectly, 50 percent or more of the total value or voting power of all the outstanding stock of the Company or(iv) an entity, at least 50 percent of the total value or voting power of which is owned, directly or indirectly, by a person described in (iii).  For purposes of this subsection, and except as otherwise provided, a person’s status is determined immediately after the transfer of the assets.  For example, a transfer to a corporation in which the Company has no ownership interest before the transaction, but which is a majority-owned subsidiary of the Company after the transaction is not treated as a change in the ownership of the assets of the Company. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (iv)   | Acting as a Group.  For purposes of this Section, persons will not be considered to be acting as a group solely because they purchase or own stock of the Company at the same time, or as a result of the same public offering.  However, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock or similar business transaction with the Company.  If a person, including an entity, owns stock in both corporations that enter into a merger, consolidation, purchase or acquisition of stock or similar transaction, such shareholder is considered to be acting as agroup with other shareholders in a corporation prior to the transaction giving rise to the change and not with respect to the ownership interest in the other corporation. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (v)   | Exceptions.  Notwithstanding the foregoing, a Change in Control of the Company (i) will not occur as a result of the issuance of stock by the Company in connection with any public offering of its stock; (ii) will not be deemed to have occurred with respect to any transaction unless such transaction has been approved or shares have been tendered by a majority of the shareholders who are not Section 16 Persons; and (iii) will not occur due to stock ownership by the 401(k) Plan, or any other employee benefit plan sponsored by the Company or an Affiliate.  “Section 16(b) Person” means a person subject to potential liability under Section 16(b) of the1934 Act with respect to transactions which involve equity securities of the Company. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (a)   | Committee Powers.  The Committee will have all powers necessary to administer the Plan, including the power to construe and interpret the Plan documents; to decide all questions relating to an individual’s eligibility to participate in the Plan; to determine the amount, manner and timing of any distribution of benefits or withdrawal under the Plan; to resolve any claim for benefits in accordance with Article VI and Supplement A, and to appoint or employ advisors, including legal counsel, to render advice with respect to any of the Committee’s responsibilities under the Plan.  Any construction, interpretation, or application of the Plan by theCommittee will be final, conclusive and binding. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Records and Reports.  The Committee will be responsible for maintaining sufficient records to determine each Participant’s eligibility to participate in the Plan, and for purposes of determining the amount of contributions that may be made on behalf of the Participant under the Plan. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Rules and Decisions.  The Committee may adopt such rules as it deems necessary, desirable, or appropriate in the administration of the Plan.  All rules and decisions of the Committee will be applied uniformly and consistently to all Participants in similar circumstances.  When making a determination or calculation, the Committee will be entitled to rely upon information furnished by a Participant or beneficiary, the Company or the legal counsel of the Company. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Application for Benefits.  The Committee may require a Participant or beneficiary to complete and file with it an application for a benefit, and to furnish all pertinent information requested by it.  The Committee may rely upon all such information so furnished to it, including the Participant’s or beneficiary’s current mailing address. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | Delegation.  The Committee may authorize one or more officers of the Company to perform administrative responsibilities on its behalf under the Plan.  Any such duly authorized officer will have all powers necessary to carry out the administrative duties delegated to such officer by the Committee. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (a)   | A certified copy of a resolution of its board of directors to that effect; and |
|-----------------|--------------------------------------------------------------------------------|

| (b)   | A written document signed by an authorized Company officer which indicates the Company’s consent to that action. |
|-----------------|------------------------------------------------------------------------------------------------------------------------|

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|   | (a) | The specific reasons for the adverse determination; |
|--------|-----|-----------------------------------------------------|

|   | (b) | Reference to the specific Plan provisions (including any internal rules, guidelines, protocols, criteria, etc.) on which the determination is based; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | A description of any additional material or information necessary for the Claimant to complete the claim and an explanation of why such material or information is necessary; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | For a Disability Claim, the identification of any medical or vocational experts whose advice was obtained on behalf of the Plan in connection with Claimant’s Adverse Benefit Determination, without regard to whether the advice was relied upon; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | A description of the Plan’s review procedures and the time limits applicable to such procedures. |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (a) | The Claimant, or his authorized representative, may submit written comments, documents, records, and any other information relating to the claim for benefits; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (b) | The Claimant will be provided, upon request of the Claimant or his authorized representative, reasonable access to, and copies of, all documents, records, and other information relevant to the Claimant’s Benefit Claim, without regard to whether those documents, records, and information were considered or relied upon in making the Adverse Benefit Determination that is the subject of the appeal. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (a)   | The specific reasons for the adverse determination on review; |
|-----------------|---------------------------------------------------------------|

| (b)   | Reference to the specific Plan provisions (including any internal rules, guidelines, protocols, criteria, etc.) on which the benefit determination on review is based; |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | A statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the Claimant’s Benefit Claim, without regard to whether those records were considered or relied upon in making the Adverse Benefit Determination on review, including any reports, and the identities, of any experts whose advice was obtained. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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