Document:

Exhibit
10.1

    

    Supplemental
Directors Retirement Plan

    

    for
the

    

    Directors
of First Community Bancshares

    

    EFFECTIVE
January 1, 2011, the First Community Bancshares, Inc. (herein referred to as the
“Company”) amends and restates the First Community Bancshares
Supplemental Directors Retirement Plan.

    

    WHEREAS,
the Company originally entered into a Supplemental Retirement Plan Agreement
effective as of November 2, 2001, with each of its Directors who were actively
serving as a Director of the Company on November 2, 2001.

    

    WHEREAS,
effective January 1, 2005, the Company amended the original Supplemental
Retirement Plan Agreements (referred to as the First Community Bancshares, Inc.
Director Supplemental Retirement Plan Agreements which were originally
effective as of November 2, 2001) with each Director in order to conform with
IRC 409A.

    

    WHEREAS,
it is the intention of the Company to establish a non-qualified supplemental
pension plan for the sole and exclusive benefit of its eligible Director who
qualify as Participants hereunder and their Beneficiaries, as herein provided.
The purpose of this Plan is to provide a retirement income benefit to its long
term Directors who are eligible to participate.

    

    WHEREAS,
this amendment and restatement is intended to be a “good faith” compliance with
the Section 409A of the Internal Revenue Code.

    

    WHEREAS,
this amended and restated Plan embodied herein has been duly approved and
authorized by the Board of Directors of said Company.

    

    NOW,
THEREFORE, THIS AGREEMENT,

    

    ARTICLE 1 -
DEFINITIONS

    

    The
following terms shall have the meaning indicated when capitalized throughout
this document, unless the context clearly indicates otherwise.

    

    
      	
              1.1

            	
              Accrued
      Benefit shall mean the monthly retirement benefit a Participant
      would receive at his Normal Retirement Date based on the retirement
      benefit formula set forth in Section 3.2(a) of this Plan, determined based
      such Participant’s Final
      Average Compensation and his number of actual Years of Benefit Service
      (as of the date of the determination of his Accrued Benefit). The
      amount of a Participant’s Accrued Benefit is determined as
      follows:

            

    

    

    
      	
               
      

            	
              (a)

            	
              First,
      a Participant’s projected Normal Retirement Benefit at his Normal
      Retirement Date is calculated in accordance with Section 3.2(a) herein,
      using the Participant’s expected Years of Benefit Service as of
      his Normal Retirement Date and his Final Average
      Compensation as of the accrual
date.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Next,
      the Participant’s projected Normal Retirement Benefit as determined in the
      preceding paragraph is multiplied by a ratio (not to exceed 1.0) of (i)
      over (ii), where:

            

    

    

    
      	
               
      

            	
              (i)

            	
              Is
      the number of the Participant’s actual Years of Benefit
      Service as of the accrual date,
and

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (ii)

            	
              Is
      the number of Years of
      Benefit Service that the Participant is expected to
      complete if he were to continue to serve as a Director of the Company
      until his Normal Retirement Date.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Finally,
      a Participant’s Accrued
      Benefit is the result of the calculations in (a) and (b)
      above.

            

    

    

    
      	
              1.2

            	
              Actuarial
      (or Actuarially) Equivalent shall mean a benefit of equivalent
      value to the Normal Annuity Form determined by generally accepted
      actuarial principles. Any alternate form of distribution shall be
      Actuarially Equivalent to the Normal Annuity Form of distribution at the
      Normal Retirement Date.

            

    

    

    For
benefit payment paid
other than a lump sum, the conversion to an alternate form shall be based
upon the 1983 Group Annuity Mortality Table assuming the Participant is male and
a 7.0% interest assumption.

    

    
      	
               
      

            	
              For
      any benefits
      paid as a lump sum, the Actuarial Equivalent of such benefit shall
      be determined using (i) the 1984 Unisex Mortality Table adjusted for a 20%
      female content and (ii) using an interest equal to the greater of
      either 7.0% or the 10 Year US Treasury Bond rate in effect as of the first
      day of the month two months prior to the date of any lump sum
      payment.

            

    

    

    
      	
              1.3

            	
              Annuity
      Starting Date shall mean the first day of the first period for
      which a benefit under this Plan is payable in the form of an annuity
      whether or not such benefit commences on such
  date.

            

    

    

    
      	
              1.4

            	
              Applicable
      Guidance means as the context requires Code Sections 83, 409A, and
      457; and  Treas. Reg. 1.83, Treas. Reg. 1.409A, Treas. Reg
      1.457; and any other written Treasury or IRS guidance regarding or
      affecting Code Sections 83, 409A, or 457. Applicable Guidance also
      includes through December 31, 2006, or other applicable date, Notice
      2005-1.

            

    

    

    
      	
              1.5

            	
              Beneficiary
      shall mean any person or legal entity designated by a Participant to
      receive benefits under this Plan.

            

    

    

    
      	
              1.6

            	
              Board shall mean the
      Board of Directors of the Company.

            

    

    

    
      	
              1.7

            	
              Break-In-Service
      shall mean a twelve (12) consecutive month Plan Year period during which a
      Participant is no longer an active Director of the Company and the
      Participant has incurred a Separation from
  Service.

            

    

    

    
      	
              1.8

            	
              Change
      in Control shall mean the occurrence of one of the following three
      (3) events:

            

    

    

    
      	
               
      

            	
              (a)

            	
              Change in Ownership of the
      Company - A
      “change in ownership” occurs on the date that any one person, or more than
      one persons acting as a group, acquires ownership of stock of the Company
      that, together with stock already held by such person or group,
      constitutes more than 50% of the total fair market value or total voting
      power of the stock of the Company.

            

    

    

    
      
        	
              	
                (b)

              	
                Change in Effective Control of
      the Company - A “change in effective control” occurs on the
      date either one of the following events
occurs:

              

      

    

    

    
      	
               
      

            	
              (i)

            	
              Any
      one person, or more than one person acting as a group acquires (or has
      acquired during the 12-month period ending on the date of the most recent
      acquisition by such person or persons) ownership of stock of the Company
      possessing 30% or more of the total voting power of the stock of the
      Company; or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              A
      majority of members of the Company’s Board of Directors are replaced
      during any 12-month period by directors whose appointment or election is
      not endorsed by a majority of the members of the Company’s Board of
      Directors prior to the date of the appointment or
  election;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Provided
that for purposes of this paragraph (b) the term Company shall refer to the
Company for which no other corporation is a majority shareholder for purposes of
this paragraph.

    

    
      	
               
      

            	
              (c)

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

            

    

    

    The
occurrence of an event described in this Section 1.8 must be objectively
determinable.

    

    1.9         Code
means the Internal Revenue Code of 1986, as amended.

    

    
      	
              1.10

            	
              Committee
      shall mean the Compensation Committee of the Board (or other Committee
      that maybe appointed by the Board) provided for in Article 9 of the
      Plan.

            

    

    

    
      	
              1.11

            	
              Compensation
      – A Director’s Compensation for any Plan Year shall be total annual
      fees actually paid to the Director by the Company and any of its
      subsidiaries (including First Community Bank) for the Plan Year concerned,
      including any amount of Director’s fees and earnings deferred under any
      non-qualified Company sponsored plan or other deferred arrangement, but
      excluding any reimbursements due to travel, or entertainment and excluding
      the taxable value of any Company paid Split Dollar life insurance, or
      other fringe benefit provided by the
Company.

            

    

    

    As of any
Anniversary Date, a Director’s Compensation shall be the Compensation (as
defined in the preceding paragraphs) paid for the prior Plan Year.

    

    1.12       Computation
Period:

    

    Accrual of Benefit
Computation Period - The 12 consecutive month period beginning with the
first day of the Plan Year and ending with the last day of the Plan
Year.

    

    1.13       Dates:

    

    
      	
               
      

            	
              (a)

            	
              The
      Original Effective Date
      of the Plan was November 2, 2001.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Anniversary
      Date shall mean January 1 of each calendar
  year.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Plan Year: The
      Plan Year shall begin each January 1 and end the following December
      31.

            

    

    

    
      	
               
      

            	
              (d)

            	
              Entry Date
      shall mean the first day of the Plan Year (January
  1).

            

    

    

    1.14       Disability
or Disabled shall mean that the
Participant either is:

    

    
      	
               
      

            	
              (a)

            	
              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, or

            

    

    

    
      	
               
      

            	
              (b)

            	
              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) receiving income replacement
      benefits for a period of three (3) or more months under an accident and
      health plan covering employees of the Company,
  or

            

    

    

    
      	
               
      

            	
              (c)

            	
              Determined
      to be disabled by the Social Security
  Administration.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    However,
for purposes of this Plan, no Participant shall be deemed Disabled if his
disability results from injury incurred while engaging in any illegal or
felonious enterprise, or intentionally self-inflicted injury.

    The
Company may require proof of continued Disability from time to time, but not
more frequently than once in any six (6) month period.

    

    
      	
              1.15

            	
              Eligible
      Spouse shall mean one to whom a Participant is married (of the
      opposite sex) throughout the one year period ending on the date the
      Participant’s benefits under this Plan are to
  commence.

            

    

    

    
      	
              1.16

            	
              Eligible
      Director shall mean any Director, of the Company who was elected by
      the shareholders of the Company to serve on its Board of Directors and is
      approved for participation in the Plan by the Compensation Committee of
      the Board. However, a Director who is an employee of the Company shall not
      be eligible to participate in this
Plan.

            

    

    

    
      	
              1.17

            	
              Director
      shall mean any person who serves on the Board of Directors of the Company
      and who was elected to such position by a majority vote of the
      shareholders of the Company.

            

    

    

    
      	
              1.18

            	
              Company
      shall mean First
      Community Bancshares, Inc. (55-0694814) or any other organization
      which has adopted the Plan with the consent of such establishing Company;
      and any successor of such Company.

            

    

    

    
      	
              1.19

            	
              ERISA shall mean the
      Employee Retirement Income Security Act of 1974, as amended, and
      regulations and guidance issued
thereunder.

            

    

    

    
      	
              1.20

            	
              Gender
      and Number - The masculine pronoun shall include the feminine and
      the singular shall include the
plural.

            

    

    

    
      	
              1.21

            	
              Insurer
      - Any insurance company licensed to do business in any state where this
      Plan is located.

            

    

    

    
      	
              1.22

            	
              Normal
      Annuity Form - The Normal Annuity Form shall be a 120 Month Certain
      Annuity which provides monthly payments to the Participant, the
      first payment to be paid on the first day of the month coinciding with or
      next following such Participant’s benefit commencement date, if he is then
      living, and subsequently 119 consecutive monthly payments of an equal
      amount monthly thereafter terminating after 120 monthly payments has been
      made to the Director or his
Beneficiary(s).

            

    

    

    
      	
              1.23

            	
              Normal
      Retirement Age shall normally be age 70 provided a Participant has
      completed 5 or more Years of Benefit
      Service with the Company. However, the Normal Retirement Date for a
      Participant may vary and will be specified in Appendix
    A.

            

    

    

    
      	
              1.24

            	
              Normal
      Retirement Date for a Participant
      shall be the first day of the month coinciding with or next following the
      Participant’s Normal Retirement Age provided the Participant has incurred
      a Separation of Service from the
Company.

            

    

    

    
      	
              1.25

            	
              Participant shall mean
      any Eligible Director, or former Eligible Director (or beneficiary
      thereof) who has retired, who has met the eligibility and participation
      requirements of the Plan pursuant to Article 2 herein, provided that any
      former Director who has been paid in full through means of a lump sum
      distribution shall not be considered a Participant under this Plan unless
      and until he shall be re-elected by the shareholders to the Board and
      again meet the requirements of Article 2 herein. See Appendix A for a list of
      Plan Participants.

            

    

    

    
      	
              1.26

            	
              Payment
      Election Form shall mean the
      form on which the Participant elects the payment of his retirement
      benefits.  This Election Form (Initial Payment Election Form-
      Appendix
      B) should be completed within 30 days following the date that the
      Participant enters the Plan unless it is changed by a Subsequent Payment
      Election as defined in Section 1.32 below. For any Participant who was a
      participant under a prior Plan Agreement, his Initial Payment Election
      shall be as specified in his prior Plan Agreement in effect as of January
      1, 2005.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              1.27

            	
              Plan
      shall mean the First
      Community Bancshares, Inc Supplemental Directors Retirement Plan as
      embodied in this instrument, any and all supporting documents, and all
      subsequent amendments and supplements
thereto.

            

    

     

    
      	
              1.28

            	
              Plan
      Administrator shall mean the Compensation Committee of the Board,
      unless otherwise designated by the
Board.

            

    

    

    
      	
              1.29

            	
              Payment
      Events means those events
      that permit a payment to be made to a Participant or his Beneficiary from
      this Plan. Such payment events are limited to the following
      occurrences:

            

    

    

    
      	
               
      

            	
              (a)

            	
              Death,

            

    

    

    
      	
               
      

            	
              (b)

            	
              Disability

            

    

    

    
      	
            	
              (c) 

            	
              Attainment
      of Normal Retirement Date coupled with Separation from
      Service,

            

    

    

    
      
        	
              	
                (d) 

              	
                Separation
      from Service with a vested benefit of less than $10,000 in lump
      sum;

              

      

    

    

    (e)       Plan
Termination in accordance with Section 14.2;

    

    (f)      
 Bankruptcy or dissolution of the Company;

    

    (g)       Separation
from Service within 24 months following a Change of Control.

    

    
      	
              1.30

            	
              Separation
      from Service means the date that a Director either resigns his
      directorship or is not re-elected to his position by the shareholders of
      the Company. A Director’s Separation from Service shall be within the
      meaning of Applicable Guidance and further includes a termination of his
      directorship with the Company whether on account of death, Disability,
      retirement or otherwise, except for cause as defined in 1.34
      below.

            

    

    

    Furthermore,
in considering whether a Separation from Service has occurred, the following
special rules will apply:

    

    
      	
               
      

            	
              (a)

            	
              Effect of Leave of
      Absence. A Director does not incur a Separation from Service if the
      Director is on military leave, sick leave, or other bona fide leave of
      absence (such as temporary employment by the government), if such leave
      does not exceed a period of 6
months.

            

    

    A “leave
of absence” must be a bona fide leave of absence where there is a reasonable
expectation that the Participant will return to the service of the Company.
Under a “disability leave of absence,” the directorship relationship will be
treated as continuing for a period of up to 29 months, unless otherwise
terminated by the Company or the Director.

    

    
      	
               
      

            	
              (b)

            	
              Insignificant
      Service. If a Director continues to perform services for the
      Company, but the services are not more than insignificant, the Director
      incurs a Separation from Service. For this purpose, a Director will be
      deemed to provide more than insignificant service (and no Separation from
      Service occurs) if the Director provides bona fide services which are
      equal to at least 20% of the average annual services performed during the
      immediately preceding three full calendar years of service, or if less,
      the period the Director served the
Company

            

    

    

    
      	
               
      

            	
              (c)

            	
              Significant
      Non-Employee Service. In addition, a former Director who continues
      to render significant services to the Company in a non-Employee capacity
      is not deemed to have incurred a Separation from Service. For this purpose
      a former Employee is deemed to render significant service if the former
      Employee provides service to the Company and receives annual remuneration
      from the Company which is equal to at least 50% of the average annual
      remuneration earned during the immediately preceding three full calendar
      years of service, or if less, the period the Employee was in the service
      of the Company.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (d)

            	
              Company
      Determination. The Company will determine whether a Director has
      incurred a Separation from Service: (i) based on the facts and
      circumstances; (ii) subject to the provisions of this Section 1.30; and
      (iii) without application of the “same desk rule” under Rev. 79-336 and
      Rev. Rul. 80-229. The Company will determine whether an Employee, or
      Director has incurred a Separation from Service in accordance with Treas.
      Reg. §1.409A-1(h) and Applicable
Guidance.

            

    

    

    1.31       Service

    

    (a)           Years of
Service;

    

    Years of Service
shall mean all of a Director’s full calendar years and months of continuous
service as a Director with the Company and any predecessor Company that is
acquired by or merged with the Company, provided the Participant was a Director
of the Company on the date of the merger or acquisition.

    

    
      	
               
      

            	
              (b)

            	
              Years of Benefit
      Service shall mean all of a Director’s Years of Service as a
      Director, including Years of Service prior to the adoption of this Plan.
      However, notwithstanding the provisions of this Section 1.31, if a
      Participant retires or has a Break-in-Service and shall have received all
      of his vested Accrued Benefit under the Plan, or the Actuarial Equivalent
      thereof, and shall subsequently re-enter service, service prior to such
      retirement or Break-in-Service shall be disregarded for the purpose of
      determining Years of Benefit
Service.

            

    

    

    
      	
              1.32

            	
              Subsequent
      Payment Election shall mean an election (Subsequent Payment Election
      Form) by a Participant or a Beneficiary that is made after the
      Participant has already entered the Plan.  To be recognized by
      the Plan, a Subsequent Payment Election must meet the requirements of
      Section 8.3.

            

    

    

    
      	
              1.33

            	
              Terminate
      or Termination of Service shall mean that a Participant has had a
      Separation from Service.

            

    

    

    
      	
              1.34

            	
              “Termination
      for Cause” and “For
      Cause” shall mean the Participant’s service as a Director has
      ceased because of any of the following
reasons:

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      Director’s gross negligence or gross neglect of duties or intentional and
      material failure to perform stated duties after written notice thereof,
      or

            

    

    

    
      	
               
      

            	
              (b)

            	
              disloyalty
      or dishonesty by the Director in the performance of the Director’s duties,
      or a breach of the Director’s fiduciary duties for personal profit,
      or

            

    

    

    
      	
               
      

            	
              (c)

            	
              intentional
      wrongful damage by the Director to the business or property of the Company
      or its affiliates, including without limitation the reputation of the
      Company, which in the judgment of the Company causes material harm to the
      Company or affiliates, or

            

    

    

    
      	
               
      

            	
              (d)

            	
              a
      willful violation by the Director  of any applicable law or
      significant policy of the Company or an affiliate that, in the Company’s
      judgment, results in an adverse effect on the Company or any affiliate,
      regardless of whether the violation leads to criminal prosecution or
      conviction.  For purposes of this Plan, applicable laws include
      any statute, rule, regulatory order, statement of policy, or final
      cease-and-desist order of any governmental agency or body having
      regulatory authority over the Company,
or

            

    

    

    
      	
               
      

            	
              (e)

            	
              the
      Director is removed from his directorship or permanently prohibited from
      participating in the Company’s affairs by an order issued under Section
      8(e)(4) or Section 8(g)(1) of the Federal Deposit Insurance Act, 12 U.S.C.
      1818(e)(4) or (g)(1), or

            

    

    

    
      	
               
      

            	
              (f)

            	
              the
      conviction of the Director for or plea of no contest to a felony or
      conviction of or plea of no contest to a misdemeanor involving moral
      turpitude, or the actual incarceration of the
  Director.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (g)

            	
              the
      Director divulging trade secrets, association with a competitive Company
      or other financial institution, fraud, embezzlement, or other intentional
      and criminal acts directly related to the interest of the Company,
      herein.

            

    

    

    
      	
               
      

            	
              (h)

            	
              Violation
      by a Director of the Covenant Not to Compete provisions as provided in
      Article 15 in this Plan.

            

    

    

    ARTICLE 2 –
ELIGIBILITY

    

    
      	
              2.1

            	
              Requirements
      for Participation - Any Eligible Director who had originally
      entered into a Supplemental Retirement Plan Agreement with the Company and
      whose name is included in Appendix A attached hereto and who is as of
      December 31, 2010 an active Director shall continue to participate as of
      January 1, 2011.  Effective January 1, 2011, any Eligible
      Director may participate in the Plan on January 1, 2011 or any subsequent
      Plan Entry Date (each January 1) if so approved by the
      Committee.

            

    

    

    ARTICLE 3 - NORMAL
RETIREMENT

    

    
      	
              3.1

            	
              Vesting
      at Normal Retirement - At Normal Retirement Age each Participant
      shall have a 100% vested right to his Normal Retirement
      Benefit.

            

    

    

    
      	
              3.2

            	
              Amount
      of Normal Retirement Benefit - The amount of the monthly Normal
      Retirement Benefit, payable as the Normal Annuity Form, shall be
      determined as follows:

            

    

    

    
      	
               
      

            	
              (a)

            	
              Determination of
      Normal Retirement Benefit - Each Participant shall be entitled to
      receive a monthly retirement benefit commencing on his Normal Retirement
      Date, provided he has incurred a Separation from Service from
      the  Company (unless he elects otherwise in accordance with
      Section 8.3), an amount equal to one-twelfth (1/12) of the amount as
      determined below:

            

    

    

    A Normal
Retirement Benefit equal to the Normal Retirement Benefit Percentage (as
provided in the Table below) of such Participant’s Final Average Compensation based on his
number of Years of Benefit
Service as a Director per the following Table:

    

    
      
        
          
            
              	
                      Years of Benefit Service

                    	 
      	
                      Normal Retirement

                      Benefit %

                    
	
                      Less
      than 10

                    	 
      	
                      0%

                    
	
                      10

                    	 
      	
                      50%

                    
	
                      11

                    	 
      	
                      60%

                    
	
                      12

                    	 
      	
                      70%

                    
	
                      13

                    	 
      	
                      80%

                    
	
                      14

                    	 
      	
                      90%

                    
	
                      15
      or more

                    	 
      	
                      100%

                    

            

          

        

      

    

    

    
      	
               
      

            	
              (b)

            	
              Final Average
      Compensation - A Participant’s “Final Average
      Compensation” is an average of the Director’s annual Compensation
      for the highest
      consecutive three (3) calendar years out of the last ten (10) years
      that he served as a member of the Board of Directors of the
      Company.

            

    

    

    
      	
              3.3

            	
              Commencement
      of Normal Retirement Benefit. Subject to the “6
      months” rule for Specified Employees in Section 8.4(b), monthly payment of
      a Participant’s Normal Retirement Benefit shall start as of the first day
      of the month following the Participant’s Normal Retirement Age provided
      the Participant has incurred a Separation from Service from the Company,
      unless the Participant (i) elects otherwise on his Initial Payment Election
      Form or (ii) has elected to defer the commencement by making a
      Subsequent Payment
      Election in accordance with Section
8.3.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    ARTICLE 4 - DEFERRED
RETIREMENT

    

    
      
        	
                4.1

              	
                Deferred
      Retirement.  A
      Participant may retire later than his Normal Retirement Date. Subject to
      the “6 months” rule for Specified Employees in Section 8.4(b), should any
      Participant continue to serve as a Director of the Company beyond his
      Normal Retirement Date, his benefit shall commence on his Deferred
      Retirement Date provided he has incurred a Separation from Service from
      the Company, unless he elects in writing to defer the commencement of his
      benefit in accordance with Section 4.2
below.

              

      

    

    

    
      	
              4.2

            	
              Deferral
      of Retirement Benefit.  A Participant who has qualified
      for Normal Retirement may elect to defer the commencement of his
      retirement benefit, provided his election meets the requirements of
      Section 8.3 herein.

            

    

    

    
      	
              4.1

            	
              Amount
      of Deferred Retirement Benefit. A Participant who continues in the
      service of the Company beyond his Normal Retirement Date as a Director and
      earns additional Years
      of Benefit Service shall receive the greater of (i) his Normal
      Retirement Benefit computed as of his Normal Retirement Date, or (ii) an
      amount computed using his total Years of Benefit
      Service as of his Deferred Retirement Date and his Final Average
      Compensation as of his Deferred Retirement
  Date.

            

    

    

    ARTICLE 5 - DISABILITY
RETIREMENT

    

    
      	
              5.1

            	
              Eligibility
      for Disability Retirement Benefits.  A
      Participant who becomes Disabled (as defined in Section 1.14 herein) prior
      to his actual Normal Retirement shall become 100% vested in his Accrued
      Benefit as to the date that he his determined to be
    Disabled.

            

    

    

    
      	
              5.2

            	
              Disability
      Retirement Date.  The
      Disability Retirement Date of a Participant shall be the first day of the
      month coinciding with or next following the date a Participant meets the
      requirements of Section 5.1 above. However, if a Disabled Participant is
      entitled to receive benefits under an insured long-term disability program
      of the Company or any other Company’s long-term disability program, then
      the Disabled Participant’s benefit (if he is still living) shall begin on
      the first day of the month following the date the Disabled Participant is
      no longer entitled to receive any Disability benefits under the insured
      long-term disability program of the Company or any other
      Company.

            

    

    

    5.3         Determination of Disability
Benefit

    

    
      	
               
      

            	
              (a)

            	
              Commencement of
      Payment. Disability benefit payments shall be payable on the later
      of the first day of the month next
following:

            

    

    

    
      
        	
              	
                (1)

              	
                a
      six (6) month waiting period and shall be paid following the Disability if
      the Participant is then still Disabled,
or

              

      

    

    

    
      
        	
              	
                (2)

              	
                the
      cessation of  any Disability benefits under an insured long-term
      disability program as provided in Section 5.2.  The
      Participant’s Disability benefit shall be payable in accordance with any
      option elected pursuant to Article 8 herein, provided, however, that any
      such benefit payment shall cease upon the first to occur of the following
      events:

              

      

    

    

    
      	
               
      

            	
              (i)

            	
              the
      date the Participant is deemed to be no longer
  Disabled,

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      date the Participant refuses to submit to a medical examination or refuses
      to furnish due proof of continued
Disability,

            

    

    

    
      	
               
      

            	
              (iii)

            	
              the
      date the Participant attains his Normal Retirement Age, at which time such
      Participant shall be deemed to be a retired Participant no longer required
      to furnish proof of Disability. Any benefit being paid to a disabled
      Participant who reaches Normal Retirement Age shall continue as if the
      Participant had elected such benefit at his Normal Retirement
      Date.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (b)           The
amount of such
Disability benefit shall be determined as follows:

    

    
      	
               
      

            	
              (1)

            	
              Once
      a Participant is determined to be Disabled (as defined in Section 1.14),
      his Accrued Benefit shall become 100%
vested.

            

    

    

    
      	
               
      

            	
              (2)

            	
              For
      purposes of benefit accrual, a Participant shall continue to receive
      credit for Service during the six (6) month waiting period in Section
      5.3(a), but not beyond the 6 month waiting period, equal to the Service he
      would have normally received credit for if the Participant would have
      continued as an active Director during this six (6) month waiting
      period.

            

    

    

    
      	
               
      

            	
              (3)

            	
              If
      the payment of benefits commences at Normal Retirement Date, the amount of
      the benefit shall be the Participant’s Accrued Benefit as of his
      Disability Retirement Date.

            

    

    

    
      	
               
      

            	
              (4)

            	
              If
      the payment of benefits commences prior to a Participant’s Normal
      Retirement Date, the amount of the benefit shall be the Participant’s
      Accrued Benefit as of his Disability Retirement
  Date.

            

    

    

    
      	
               
      

            	
               (c)

            	
              The
      Form of Payment
      of such Disability benefit shall be as 120 Month Certain
      Annuity.

            

    

    

    
      	
              5.4

            	
              Cash-out
      of Small Benefits - The provisions of
      Section 5.3 notwithstanding, if the Actuarially Equivalent lump sum
      present value of the Disability benefit determined for any disabled
      Participant shall be $10,000 or less, then such lump sum shall be paid
      directly to such disabled Participant on the first day of the month
      following the Participant’s  Disability Retirement
      Date.

            

    

    

    5.5         Recovery
from Disability.  Subject to the Separation from Service rules
of Section 1.30(a):

    

    
      	
               
      

            	
              (a)

            	
              If
      a Participant is deemed to be no longer Disabled prior to his Normal
      Retirement Date and returns to the active service as a Director of the
      Company within one month of such determination or recovery, then the
      Participant shall be deemed not to have incurred a Break in Service as a
      result of his Disability, but the number of years and fractions thereof
      during which he may have received payments pursuant to this Article shall
      not be counted in determining his Years of Benefit
      Service for any purposes under the Plan. Disability payments shall
      nonetheless cease in accordance with Section
  5.3(a).

            

    

    

    
      	
               
      

            	
              (b)

            	
              If
      the Participant is deemed to be no longer Disabled prior to Normal
      Retirement Date and does not return to the
      active service as a Director of the Company within one month of
      such determination or recovery, then he shall be deemed to have separated
      from the service of the Company as of the date he became Disabled. In this
      event, the provisions of Section 5.3(a) shall apply, and any benefit
      payments shall cease.

            

    

    

    ARTICLE 6 - SURVIVOR
BENEFITS

    

    
      	
              6.1

            	
              Death
      prior to commencement of benefit payments.  If a
      Participant dies prior to the date that he has elected Normal Retirement
      or has been determined to be
Disabled:

            

    

    

    
      	
               
      

            	
              (a)

            	
              Should
      a Participant die prior to his written election to commence his Normal
      Retirement benefit, his Beneficiary(s) shall receive his Accrued Benefit
      determined as of the date of his death payable over 10 years in 120 equal
      monthly payments. In addition, his Beneficiary may be entitled to a death
      benefit payable under any separate Split Dollar Agreement (if applicable)
      with the Company.

            

    

    
      	
               
      

            	
               (b)

            	
              Should
      a Participant die after the date to his written election to commence
      Normal Retirement, his beneficiary shall receive a death benefit in a
      monthly  amount equal to amount of his Accrued Benefit payable
      under the Normal Form of Payment (120 months certain) for the number of
      remaining payment under the 120 months certain payment form. In addition,
      his Beneficiary may be entitled to a death benefit under any separate
      Split Dollar Agreement (if applicable) with the
  Company.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              6.2

            	
              Date
      of Payment-
      In the event a death benefit becomes payable under Section 6.1 to
      his Beneficiary(s),  payment shall be in the Normal Form
      commencing as of the 1st
      day of the month coinciding with or next following 60 days after the date
      of the Participant’s death.

            

    

    Notwithstanding
the provisions of Section 6.1 above, if the Actuarially Equivalent present value
of the survivor’s benefit is $10,000 or less, such lump sum present value shall
be as of the first day of the month next following 60 days after the
Participant’s death to the Participant’s Beneficiary.

    

    
      	
              6.3

            	
              Beneficiary- A Participant or
      former Participant electing a Form of payment under which benefits may
      become payable after his death for a period determined without reference
      to the duration of any person’s life, may designate one or more primary or
      contingent beneficiaries in writing on forms supplied by the Committee. A
      Participant or former Participant may change his designation at any time
      in the same manner. Any portion of a Participant’s or former Participant’s
      death benefit which is not disposed of under a designation of beneficiary
      for any reason whatsoever shall be paid in the following
      order:

            

    

    

    (a)           to
his spouse, if living, otherwise

    

    
      	
               
      

            	
              (b)

            	
              his
      natural or adopted children and survivors thereof, in equal shares per
      stirpes, otherwise

            

    

    

    
      	
               
      

            	
              (c)

            	
              his
      parents and survivor thereof, in equal shares,
  otherwise

            

    

    

    
      	
               
      

            	
              (d)

            	
              his
      executors or administrators.

            

    

    

    “Beneficiary” means the
person, or persons, designated by the Participant, or former Participant, or by
the terms of this Section, to receive death benefits, but the provisions of this
Section shall in no event apply to any amounts payable to a contingent
pensioner, or other person entitled to payments for life after the death of the
Participant, or former Participant, under any Optional Form of pension
payment.

    

    ARTICLE 7 - TERMINATION OF
SERVICE – VESTING

    

    
      	
              7.1

            	
              Vesting
      of Benefits - Notwithstanding any other provisions of this Article,
      a Participant’s Accrued Benefit shall be 100% vested upon the Payment Events listed in
      Section 7.2.

            

    

    

    
      	
              7.2

            	
              Payment
      Events - A Participant shall be vested in his Accrued Benefit under
      this Plan upon the date the Participant qualifies as having
      either:

            

    

    

    
      	
               
      

            	
              (a)

            	
              The
      Participant dies,

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      participant becomes Permanently and Totally Disabled (Article
      5);

            

    

    

    
      	
               
      

            	
              (c)

            	
              The
      Participant has reached his Normal Retirement Age (Section
      1.25),

            

    

    

    
      	
               
      

            	
              (d)

            	
              In
      the event of a “Change in Control” (Section
  1.8),

            

    

    

    
      	
               
      

            	
              (e)

            	
              The
      Participant incurred an Involuntary Termination of Service “not for cause.” “Not for cause” shall
      mean any termination of the Participant’s directorship with the Company by
      the Company that does not fall within the meaning of Termination “for
      cause.”  The term “for cause” shall mean
      as defined in Section 1.34.

            

    

    

    
      	
               
      

            	
              (f)

            	
              The
      Participant completed at least ten (10) Years of Benefit
      Service.

            

    

    

    
      	
              7.3

            	
              Termination
      with a Non-Vested Benefit. A Participant who is not re-elected
      before he becomes vested as provided in Section 7.2 above or whose
      directorship with the Company (or any of its Affiliated Companies) is
      terminated for any reason other than those listed in (a) through (f) in
      the preceding paragraph, shall forfeit any non-vested Accrued Benefits
      earned under this Plan.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              7.4

            	
              Termination
      of Directorship “for Cause” results in a Forfeiture.
      Notwithstanding any other provision of this Plan, any Director whose
      directorship is terminated “for cause,” as defined
      in Section 1.34  herein, shall forfeit any Accrued Benefit (even
      if vested) and thus not be entitled to any further benefits under this
      Plan.

            

    

    

    ARTICLE 8 - PAYMENT OF
RETIREMENT BENEFITS

    

    
      	
              8.1

            	
              At
      a Participant’s Normal or Deferred Retirement Date, benefits shall be
      provided for the retiring Participant in accordance with this
      Plan.

            

    

    

    
      	
              8.2

            	
              Normal
      Form of Benefit Payment - A retiring Participant Normal Annuity
      Form of payment shall be a Term Certain Period of 120 guaranteed monthly
      payments (as defined in Section
1.24).

            

    

    However,
a Participant will receive a lump sum payment of the Actuarial Equivalent of his
Accrued Benefit, provided such lump sum Actuarial Equivalent is $10,000 or
less.

    

    Notwithstanding
the above, a Participant shall receive a lump sum payment of all or any taxable
portion of the Actuarial Equivalent of his Accrued Benefit if under the then
current Internal Revenue Service Code (or any of its Regulations) he is required
to report as taxable income all or any portion of the present value of his
retirement benefit under this Plan during such calendar year.

    

    Any
optional Form of Payment shall be Actuarial Equivalents of the “Normal Annuity
Form” of payment of retirement benefits.

    

    8.3         Requirements of Subsequent
Election

    

    
      	
               
      

            	
              (a)

            	
              Notwithstanding
      that a Participant has made an “Initial Payment
      Election” or, having failed to make such election, the Normal Form
      of payment of a Participant’s retirement benefit should be paid at the
      time of distribution. A Participant (or a Beneficiary if applicable) may
      make a Subsequent
      Payment Election in writing on a form provided by the Company to
      change his Payment Election provided such change complies with this
      Section 8.3(a) and the requirements of Applicable Guidance as
      follows:

            

    

    

    
      	
               
      

            	
              (1)

            	
              Conditions for
      Subsequent Election.  A Participant (or Beneficiary if
      applicable) may make a change in a prior Payment Election provided it
      complies with the following:

            

    

    

    
      	
               
      

            	
              (i)

            	
              Effective Date of
      Change. The change may not take effect until at least 12 months
      following the date of the written change in payment
      election;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Five (5) Year
      Rule. If the change in payment
      election relates to a payment on account of
  either:

            

    

    ·          a
Separation from Service,

    ·          on
a Change in Control,

    ·          or
payment is at a Specified Time or pursuant to a Fixed Schedule,

    

    then the
change in election must result in payment being made no earlier than 5 years
following the date the payment otherwise would have been made (or in the case of
an installment payment treated as a single payment, as defined in Section
8.3(a)(3) below, 5 years from the date the first amount was schedule to be
paid); and

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
               
      

            	
               (iii)

            	
              Time of Subsequent
      Election.  If the change in payment election
      relates to a payment at a Specified Time or pursuant to a Fixed
      Schedule, the Participant or his Beneficiary must make the change in payment
      election not less than 12 months prior to the date the payment is
      scheduled to be made (or in the case of a Term Certain Annuity or
      installment payment treated as a single payment, 12 months prior to the
      date the first amount was scheduled to be
paid).

            

    

    

    
      	
               
      

            	
              (2)

            	
              Definition of
      “Payment.”  Except as otherwise provided in Section
      8.3(a)(3) below, a “payment” for purposes of applying Section 8.3(a)(1)
      above shall mean each separately identified amount the Plan is obligated
      to pay to a Participant or Beneficiary on a determinable date and includes
      amount paid for the benefit of the Participant.  An amount is
      “separately identifiable” only if the Company can objectively determine
      the amount. A payment includes the provision of any taxable benefit,
      including a payment in cash.

            

    

    

    
      	
               
      

            	
              (3)

            	
              Installment Payments
      and Annuities. A Term Certain Annuity or a “series of installment
      payments” are treated as a single payment for purposes of this Section
      8.3(a). For purposes of this Section 8.3(a),  a “series of
      installment payments” means payment of a series of substantially equal
      periodic amounts to be paid over a predetermined number of years, except
      to the extent that any increase (or decrease) results from reasonable
      earnings on the Participant’s Accrued
Benefit.

            

    

    

    
      	
               
      

            	
              (4)

            	
              Coordination with
      Anti-Acceleration Rule.  By making a Subsequent Payment
      Election, a Participant (or his Beneficiary if applicable) may change the
      Form of Payment (if applicable under the Plan) to a more rapid schedule
      without violating Section 8.3(b), provided any such change remains subject
      to the requirements of Section
8.3(a).

            

    

    

    
      	
               
      

            	
              (5)

            	
              Multiple Payment
      Events.  If the Plan permits multiple payment events
      (such as death, Separation from Service, etc.), the Subsequent Election of
      Section 8.3(a)(1) shall apply to each payment due upon each payment
      event.

            

    

    

    
      	
               
      

            	
              (6)

            	
              Certain Payments not
      Subject to Change Payment Election Rules. The Company may elect to
      delay payments to a Participant or Beneficiary for any of the following
      reasons:

            

    

    

    
      	
               
      

            	
              (i)

            	
              Non-Deductible
      Payments. The Company may delay payment to a Participant or
      Beneficiary if the Company reasonably anticipates that the Company’s tax
      deduction for payment of the Accrued Benefit will be limited or eliminated
      under Code Section 162(m).  However, the Company will make such
      Accrued Benefit payment as of the date at which the Company tax deduction
      is no longer limited or eliminated under Code Section 162(m), but not
      later than 24 months from the time such payment would have otherwise been
      made.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Loan
      Covenants/Contract Terms.  The Company may delay payment
      to a Participant or his Beneficiary if the Company reasonably anticipates
      that the payment will cause the Company to violate the terms of a loan
      agreement, loan covenant or other similar contract to which the Company is
      a party, provided the Company entered into the agreement or contract for
      legitimate business reasons and such violation will cause material harm to
      the Company. However, the Company will make such Accrued Benefit payment
      as of the date at which the Company reasonably anticipates that the
      payment will not cause a violation of the agreement or contract, or that
      such violation will not cause any material harm to the
      Company.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Securities or other
      Laws. The Company may delay payment to a Participant or his
      Beneficiary if the Company reasonably anticipates that the payment will
      violate Federal securities law or other applicable law. However, the
      Company will make such Accrued Benefit payment as of the date at which the
      Company reasonably anticipates that the payment will not cause a violation
      of such securities laws.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (iv)

            	
              Other.  The
      Company may delay payment to a Participant upon such other events as
      Applicable Guidance may permit.

            

    

    

    
      	
               
      

            	
              (v)

            	
              Amendments. If
      the Company amends this Plan to add other permitted reasons for delay of
      payment of Accrued Benefit, any such amendment may not take effect for 12
      months following the date the Company adopts such an amendment. As
      provided in Section 8.3(b) below, the Company may not amend this Plan to
      remove any or all of the payment delays described in this Section
      8.3(a)(6) as it relates to any previous Accrued Benefit
      amount.

            

    

    

    
      	
               
      

            	
              (b)

            	
              No Acceleration of
      Payment (General Rule).  The Company, Participant or a
      Beneficiary may not accelerate the time or schedule of any Plan payment or
      amount scheduled to be paid under this Plan. However, the following are
      not considered an acceleration of payments and are therefore considered
      permissible:

            

    

    

    
      	
               
      

            	
              (1)

            	
              A
      payment made in accordance with Plan provisions or pursuant to a Initial Payment Election
      Form under Section 1.26, or a Subsequent Election under Section 8.3
      under which payment on a accelerated schedule is required on account of an
      intervening event which includes Separation from Service, Disability,
      Death, Change in Control; and

            

    

    

    
      	
               
      

            	
              (2)

            	
              The
      Company’s waiver or acceleration of the satisfaction of any condition
      constituting a Substantial Risk of Forfeiture provided that payment is
      made only upon a permissible event and the Company’s action otherwise does
      not violate Code Section 409A.

            

    

    

    8.4           Time of Payment of
Benefits

    

    
      	
               
      

            	
              (a)

            	
              Normal Form of
      Payment. The retiring Participant shall automatically receive his
      retirement benefit payable in monthly cash payments over a period of 120
      consecutive months, unless otherwise specified by this
      Plan.  Notwithstanding, a Participant shall receive a lump sum
      payment of all or any taxable portion of the Actuarial Equivalent of his
      accrued liability if under the then current Internal Revenue Service Code
      (or any of its Regulations) he is required by the Internal Revenue Service
      to report as taxable income all or any portion of the present value of his
      retirement benefit under this Plan during such calendar
    year.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Specified
      Employee. Notwithstanding any other provision of this Plan to the
      contrary except Death, any Participant who is a “Specified Employee” (as
      defined in Section 409A of the IRC) may not have his benefit payments
      commence prior to the first day of the month next following six (6) months
      after his Separation of Service.  Should a Specified Employee’s
      benefit be deferred for 6 months, the Participant shall receive as of the
      first day of the seventh (7th)  month
      a onetime catch up payment equal to his 6 months of deferred payments.
      A Specified Employee
      includes a Director who is a 5% or more shareholder of the
      Company.

            

    

    

    ARTICLE 9 –
COMMITTEE

    

    
      	
              9.1

            	
              Except
      where otherwise specifically indicated, responsibility for administration
      of this Plan shall be reposed in the Committee (the “Committee”) of the
      Board of Directors composed of not less than three (3) individuals. The
      members of the Committee shall be appointed by the Board of Directors of
      the Company. An individual shall not be ineligible to be a member of the
      Committee because he is or may be an officer of the Company or a
      Participant under this Plan.

            

    

    

    
      	
              9.2

            	
              Subject
      to the Claims Procedure set forth in Article 10 hereof, the Committee
      shall have the duty and authority to interpret at its discretion and
      construe the provisions of the Plan, to decide any disputes which may
      arise regarding the rights of Employees under this
  Plan.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              9.3

            	
              Any
      certification by the Company of the information required or permitted to
      be certified by the Committee pursuant to the provisions of the Plan may
      be relied upon by the Committee until later shown to be incorrect. The
      Committee may correct errors, and so far as practicable, may adjust any
      benefit or payment or credit
accordingly.

            

    

    

    
      	
              9.4

            	
              The
      Committee shall maintain full and complete records of its deliberations
      and decisions. Its records shall contain all relevant data pertaining to
      individual participating Directors and their rights under the Plan. It has
      the duty to carry into effect all such rights and benefits of each and to
      answer questions and assist Directors , whether Participants or other
      Directors, to obtain the greatest good from the existence of the
      Plan.

            

    

    

    
      	
              9.5

            	
              The
      Company shall pay the reasonable expenses incident to the operation of
      this Plan. All requests, directions, requisitions and instructions of the
      Committee shall be in writing and signed by the Committee’s Chairman or
      acting Chairman and by its Secretary or acting
  Secretary.

            

    

    

    ARTICLE 10 - CLAIM
PROCEDURE

    

    
      	
              10.1

            	
              Filing
      a Claim for Benefits - Any claim for a Plan benefit hereunder shall
      be filed by a Participant or Beneficiary (claimant) of this Plan on the
      form prescribed for such purpose with the Committee, or in lieu thereof,
      by written communication which is made by the claimant or the claimant’s
      authorized representative which is reasonably calculated to bring the
      claim to the attention of the
Committee.

            

    

    

    10.2      Denial of
Claim

    

    
      	
               
      

            	
              (a)

            	
              If
      a claim for a Plan benefit is wholly or partially denied, notice of the
      decision shall be furnished to the claimant by the Committee within a
      reasonable period of time after receipt of the claim by the
      Committee.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Any
      claimant who is denied a claim for benefit shall be furnished written
      notice setting forth:

            

    

    

    
      	
               
      

            	
              (1)

            	
              The
      specific reason or reasons for the
denial;

            

    

     

    
      	
               
      

            	
              (2)

            	
              Specific
      reference to the pertinent Plan provisions upon which the denial is
      based;

            

    

    

    
      	
               
      

            	
              (3)

            	
              A
      description of any additional material or information necessary for the
      claimant to perfect the claim and an explanation of why such material or
      information is necessary;

            

    

    

    
      	
               
      

            	
              (4)

            	
              An
      explanation of the Plan’s claim review procedure, including a statement of
      the claimant’s right to bring a civil action under Section 502(a) of ERISA
      following an adverse benefit determination on
  review.

            

    

    

    10.3       Claims Review
Procedure

    

    
      	
               
      

            	
              (a)

            	
              In
      order that a claimant may appeal a denial of a claim, a claimant or his
      duly authorized representative:

            

    

    

    
      	
               
      

            	
              (1)

            	
              May
      request a review by written application to the Committee not later than 60
      days after receipt by the claimant of written notification of denial of a
      claim;

            

    

     

    
      	
               
      

            	
              (2)

            	
              May
      review and copy (free of charge) pertinent documents,  records
      and other information relevant to the claimant’s claim for
      benefits;  and

            

    

     

    
      	
               
      

            	
              (3)

            	
              May
      submit issues and comments in
writing.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (b)

            	
              A
      decision on review by the Committee of a denied claim shall be made not
      later than 60 days after receipt of a request for review, unless special
      circumstances require an extension of time for processing, in which case a
      decision shall be rendered within a reasonable period of time, but not
      later than 120 days after receipt of a request for review. If an extension
      of time is required, written notice of the extension shall be furnished to
      the claimant prior to the termination of the initial 60 day
      period.  The extension notice shall indicate the special
      circumstances requiring an extension of time and the date by which the
      Plan expects to render the determination on
  review.

            

    

    

    
      	
               
      

            	
              (c)

            	
              The
      decision on review shall be in writing and shall include the specific
      reason(s) for the decision and the specific reference(s) to the pertinent
      Plan provisions on which the decision is
based.

            

    

    

    
      	
               
      

            	
              (d)

            	
              The
      review will take into account all comments, documents, records and other
      information submitted by the claimant relating to the claim without regard
      to whether such information was submitted or considered in the initial
      benefit determination.

            

    

    

    
      	
               
      

            	
              (e)

            	
              The
      decision on review will include 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 claim for benefits.

            

    

    

    ARTICLE 11 - UNFUNDED
OBLIGATIONS

    

    The
Company’s obligations under this Plan shall be unfunded and unsecured promises
to pay the benefits provided for hereunder. The Company may establish a grantor
“Rabbi” Trust for the purpose of informally holding assets sufficient to meet
the obligations of this Plan.

    

    It is
understood that the Company may from time to time make contributions to the
Rabbi Trust in order to meet the obligations of this Plan. No participant shall
have any beneficial or other interest in any such trust asset, and same shall at
all times remain a part of the Company’s general assets accessible to its
creditors in the event of the Employee’s insolvency or bankruptcy.

    

    The
rights of a Participant, any designated recipient of a Participant or any other
person claiming through a Participant under this Plan, shall be solely those of
an unsecured general creditor of the Company. A Participant, any designated
recipient of a Participant or any other person claiming through a Participant,
shall only have the right to receive from the Company (or any trust established
to hold assets to meet the obligations of this Plan) those payments which are
specified under this Plan. No asset used or acquired by the Company in
connection with its obligations and liabilities hereunder (whether in trust or
not) shall be deemed to be held for the benefit of a Participant or his
designated recipient(s) but will be deemed only as security for the performance
of the Company’s obligations hereunder. The assets of the Trust shall be subject
to the claims of the Company’s creditors in the event of the Company’s
insolvency or bankruptcy.

    

    ARTICLE 12- ADMINISTRATIVE
AND FIDUCIARIES’ RESPONSIBILITIES

    

    No named
fiduciary under the Plan shall be liable for any act or omission of another
which act or omission occurs outside the scope of the respective fiduciaries
designated area(s) of responsibility as hereinafter stated. The named
fiduciaries and their respective areas of responsibility for the operation and
administration of the Plan are as follows:

    

    12.1       Board of
Directors

    

    (a)           Terminating
Plan;

    

    (b)        Amending
Plan;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    12.2       Company - The Company shall have the
following responsibilities and powers:

    

    
      	
               
      

            	
              (a)

            	
              Informal Funding
      Policy - The Company shall, in consultation with an enrolled
      actuary, determine the Plan’s benefits, liabilities, and accounting
      accruals and communicate same to the Plan
  Administrator.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Appointment of Plan
      Administrator - The Committee shall be named Plan Administrator.
      The Committee may, however, delegate such function by appointing any
      person or any number of persons to administer the Plan as provided in
      Article 9. In the event of such appointment, the person or persons so
      appointed shall be the successor Plan Administrator. Any person or persons
      so appointed may be removed by the Company upon thirty (30) days written
      notice unless a shorter period is agreed
to.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Review of
      Fiduciaries - The Company shall periodically review the performance
      of any fiduciary or any other person to whom any duties have been
      delegated.

            

    

    

    
      	
              12.3

            	
              Plan
      Administrator - The Plan Administrator shall have the following
      responsibilities and powers:

            

    

    

    
      	
               
      

            	
              (a)

            	
              General Powers
      - The Plan Administrator shall administer the Plan in accordance with its
      terms and shall have all powers necessary to carry out the provisions of
      the Plan. The Plan Administrator shall have the exclusive discretionary
      authority to construe and interpret the Plan, including, but not limited
      to, deciding all questions of eligibility for benefits and the amount of
      such benefits. The decision of the Plan Administrator for matters within
      its jurisdiction shall be final, binding and conclusive upon the
      Companies, Participants and Beneficiaries and every other person or party
      interested or concerned.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Procedures, Records
      and Reports - The Plan Administrator shall establish operating
      procedures and shall keep a record of his actions, as well as all books of
      account, records or other data necessary for the administration of the
      Plan and/or required by law or regulations issued pursuant to such law.
      The Plan Administrator shall prepare and file or publish with the
      Secretary of Labor or the Secretary of the Treasury, or to any other
      official or agency as may hereafter be required, all reports, documents or
      other information as may be required under law to be so filed or
      published.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Agents and
      Counsel - The Plan Administrator may engage agents to assist him in
      his duties, and may consult with counsel, actuaries, accountants,
      specialists and other persons as he deems necessary or desirable. The Plan
      Administrator shall be indemnified by the Company with respect to any
      action taken or omitted by him in good faith reliance on the advice of
      such persons, provided that the Plan Administrator has acted prudently in
      selecting or retaining such persons, to which end he shall periodically
      review such person’s performance.

            

    

    

    
      	
               
      

            	
              (d)

            	
              Expenses - All
      expenses of administration including, but not limited to, the payment of
      professional fees of consultants, actuaries, accountants, counsel,
      investment advisors and other specialists, shall be paid by the
      Company.

            

    

    

    
      	
               
      

            	
              (e)

            	
              Reports Furnished
      Participants - The Plan Administrator shall furnish to each Plan
      Participant, and to each Beneficiary receiving benefits under the Plan
      notification of any amendments to this
Plan.

            

    

    

    ARTICLE 13 -
SPENDTHRIFT

    

    
      	
              13.1

            	
              Unsecured
      Promise to Pay. No Participant under
      this Plan shall have any legal right, title or interest in the Plan or any
      assets of the Company used in connection with the Company’s Plan
      obligations. The interest of any Participant, beneficial or otherwise,
      shall be limited to that provided in the Plan and no designated
      Beneficiary shall have any greater rights than as provided by this
      Plan.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              13.2

            	
              No
      Assignment. Except to the extent permitted by law, the Participant
      may not anticipate, encumber, alienate or assign any of his rights,
      claims, or interests in this Plan or any part thereof. No payments,
      benefits, or rights arising by reason of this Plan shall in any way be
      subject to the Participant’s debts, contracts, or engagements, or to any
      judicial processes to levy upon or attach the same for payment
      thereof.

            

    

    

    ARTICLE 14 - AMENDMENT AND
TERMINATION

    

    
      	
              14.1

            	
              Amendment
      - This Plan may be amended by mutual consent of the Director and the
      Company; provided, however, that no amendment will be adopted unless it
      complies with the Applicable
Guidance.

            

    

    

    
      	
              14.2

            	
              Termination
      - It is the intention of the Company to continue this Plan and
      contributions hereunder for the benefit of its Plan
      Participants.

            

    

    

    
      	
               
      

            	
              (a)

            	
              Dissolution/
      Bankruptcy The Committee shall terminate the Plan within 12 months
      following a dissolution of the Company or successor Company taxable under
      Code §331 or with approval of a bankruptcy court under 11 U.S.C.
      §503(b)(1)(A), provided that the Deferred Compensation is paid to the
      Participants and is included in the Participants’ gross income in the
      latest calendar year: (i) in which the plan termination occurs; (ii) in
      which the amounts are no longer subject to a Substantial Risk of
      Forfeiture; or (iii) in which the payment is administratively
      practicable.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Change in
      Control. The Committee may terminate the Plan within the 30 days
      preceding or the 12 months following a Change in Control provided the
      Company distributes all Plan Accounts (and must terminate the Plan and
      distribute the accounts under any substantially similar Company plan which
      plan the Company also must terminate) within 12 months following the Plan
      termination.

            

    

    In the
event of a Change of Control, each Participant who is actively servicing as a
Director at the time of the Change of Control shall be entitled to receive in a
lump sum  an amount equal to the Actuarial Equivalent (at the time of
the payment) of his Accrued Benefit calculated as of the date of the Change in
Control.

    Any
Director who has retired and already receiving his monthly retirement benefit
shall continue to receive such monthly benefit for the new acquiring Company,
unless the acquiring Company refuses to accept their payment obligation, in
which case such retired Directors shall also be paid a lump sum (Actuarial
Equivalent) of their remaining monthly payments.

    

    
      	
               
      

            	
              (c)

            	
              Other. The
      Committee may terminate the Plan for any other reason in the Company’s
      discretion provided that: (i) the Company also terminates all Aggregated
      Plans in which any Participant also is a participant; (ii) the Plan makes
      no payments in the 12 months following the Plan termination date other
      than payments the Plan would have made irrespective of Plan termination;
      (iii) the Plan makes all payments within the 12 to 24 months following
      the Plan termination date; and (iv) the Company within 3 years following
      the Plan termination date does not adopt a new plan covering any
      Participant that would be an Aggregated
Plan.

            

    

    

    
      	
               
      

            	
              (d)

            	
              Applicable
      Guidance. The Committee may terminate the Plan under such other
      circumstances as Applicable Guidance may
permit.

            

    

    

    
      	
              14.3

            	
              Vesting
      Upon Complete Termination - Upon complete termination of this Plan,
      the Accrued Benefit of each affected Participant as of the date of
      termination shall become 100% Vested and
  Non-forfeitable.

            

    

    

    
      	
              14.4

            	
              Cessation
      of Future Benefit Accruals. The Committee may elect at any time to
      amend the Plan to cease future Participant benefit accruals after a
      specified date; however, the Committee may not reduce anyone’s Accrued
      Benefit or an optional Form of Payment on such Accrued
      Benefit.  In such event, the Plan will remain in effect until
      all Accounts are paid in accordance with the Plan terms, or, if earlier,
      upon the Company’s termination of the
Plan.

            

    

    

    ARTICLE 15 – COVENANT NOT TO
COMPETE

    

    
      	
              15.1

            	
              Covenant Not to Compete after
      Separation from Service with a Vested
  Benefit.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (a)

            	
              Without
      advance written consent of the Company, a Participant shall not compete
      directly or indirectly with the Company for two (2) years after his
      Separation from Service with a vested benefit. In addition, without
      advance written consent of the Company, a Participant shall not compete
      directly or indirectly with the Company at any time that the Participant
      is receiving Disability or retirement benefit payments under the Normal or
      Deferred provisions of this Plan, otherwise he shall forever forfeit any
      and all benefits under this Plan.

            

    

    

    
      	
               
      

            	
              (b)

            	
              If
      any provision of this Section or any word, phrase, clause, sentence or
      other portion thereof (including, without limitation, the geographical and
      temporal restrictions contained therein) is held to be unenforceable or
      invalid for any reason, the unenforceable or invalid provision or portion
      shall be modified or deleted so that the provisions hereof, as modified,
      are legal and enforceable to the fullest extent permitted under applicable
      law.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Definitions:
      For purposes of this Section the following definitions shall
      apply:

            

    

          
 (1)     “compete” shall
mean:

    

    
      	
            	
              (a) 

            	
               providing
      financial products or services on behalf of any financial
      institution for
      any person residing in the
territory,

            

    

    

    
      	
               
      

            	
              (b)

            	
              assisting
      (other than through the performance of ministerial or clerical duties) any
      financial institution in providing financial products or services to any
      person residing in the territory,
or

            

    

    

    
      	
               
      

            	
              (c)

            	
              inducing
      or attempting to induce any person who was a customer of the Company at
      the date of the Participant’s Separation from Service to seek financial
      products or services from another financial
  institution.

            

    

    

    
      (2)      
“directly or indirectly” shall
mean:

    

    

    
      	
               
      

            	
              (a)

            	
              acting
      as a consultant, officer, director, independent contractor, or employee of
      any financial institution in competition with the Company in the
      territory, or

            

    

    

    
      	
               
      

            	
              (b)

            	
              communicating
      to such financial institution the names or addresses or any financial
      information concerning any person who was a customer of the Company at the
      date of the Participant’s Separation from
  Service.

            

    

    

    
      	
               
      

            	
              (3)

            	
              “customer” shall mean any
      person to whom the Company is providing financial  products or
      services at the date of the Participant’s Separation from
      Service.

            

    

    

    
      	
               
      

            	
              (4)

            	
              “financial institution”
      shall mean any Company, savings association, or Company or savings
      association hold company, or any other institution, the business of which
      is engaging in activities that are financial in nature or incidental to
      such financial activities as described in Section 4(k) of the Company
      Holding Company Act of 1956, other than the Company or one of its
      affiliated corporations.

            

    

    

    
      	
               
      

            	
              (5)

            	
              “financial product or
      service” shall mean any product or service that a financial
      institution or a financial holding company could offer by engaging in any
      activity that is financial in nature or incidental to such a firm’s
      activity under Section 4(k) of the Company Holding Company Act of 1956 and
      that is offered by the Company or any affiliate on the date of the
      Director’s Separation from Service, including but not limited to Banking
      activities that are closely related and a proper incident to
      banking.

            

    

    

    
      	
               
      

            	
              (6)

            	
              “person” shall mean any
      individual or individuals, corporation, partnership, fiduciary or
      association.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              (7)

            	
              “territory” shall mean
      all of the counties in Virginia, West Virginia, Tennessee and North
      Carolina (and any additional states that the Company may open a branch
      office in) in which the Company has a branch location and the area within
      a 15-mile radius of any full-service banking office of the Company at the
      date of Participant’s Separation from
Service.

            

    

    

    
      	
              15.2

            	
              Remedies. Because of the
      unique character of the services to be rendered by the Participant
      hereunder, the Participant understands that the Company may not have an
      adequate remedy at law for the material breach or threatened breach by the
      Participant of any one or more of the Director’s covenants set forth in
      this Article 15. Accordingly, the Participant agrees that the Company’s
      remedies for a material breach or threatened breach of this Article 15
      include but are not limited to forfeiture of benefits under this Plan and
      a suit in equity by the Company to enjoin the Participant from the breach
      or threatened breach of such covenants. The Participant hereby waives the
      claim or defense that an adequate remedy at law is available to the
      Company and the Participant agrees not to urge in any such action the
      claim or defense that an adequate remedy at law exists.  Nothing
      herein shall be construed to prohibit the Company from pursuing any other
      remedies for the breach or threatened
breach.

            

    

    

    
      	
              15.3

            	
              Article 15 Is Void After a
      Change in Control. The rights and obligations set forth in this
      Article 16 shall survive termination of this Plan.  However,
      this Article 15 shall become null and void effective immediately upon a
      Change in Control.

            

    

    

    ARTICLE 16 - MISCELLANEOUS
PROVISIONS

    

    
      	
              16.1

            	
              This
      Plan is created for the exclusive benefit of the Eligible Directors of the
      Company and their Beneficiaries and shall be interpreted in a manner
      consistent with First
      Community Bancshares, Inc Supplemental Directors Retirement
      Plan.

            

    

    

    
      	
              16.2

            	
              Headings
      - The headings of the Plan have been inserted for convenience of reference
      only and are to be ignored in any construction of the provisions
      hereof.

            

    

    

    
      	
              16.3

            	
              Plan
      not Contract of Employment - This Plan shall not be construed as
      creating or changing any contract between the Company and its Directors,
      whether Participants hereunder or not; and the Company retains the right
      to deal with its Directors, whether Participants hereunder or not, and to
      terminate their respective directorship at any time, to the same extent as
      though this Plan had not been
created.

            

    

    

    
      	
              16.4

            	
              Invalidity
      of Certain Provisions - If any provisions of this Plan shall be
      held invalid or unenforceable, such invalidity or unenforceability shall
      not affect any other provisions and this Plan shall be construed and
      enforced as if such provisions had not been
  included.

            

    

    

    
      	
              16.5

            	
              Law
      Governing -
      This Plan shall be construed and enforced according to the laws of the
      Commonwealth of Virginia.

            

    

    

    
      	
              16.6

            	
              General
      Undertaking - All parties to this Plan and all persons claiming any
      interest whatsoever hereunder agree to perform any and all acts and
      execute any and all documents and papers which may be necessary or
      desirable for the carrying out of this Plan or any of its
      provisions.

            

    

    

    
      	
              16.7

            	
              Agreement
      to Bind Heirs, Etc. - This Plan
      shall be binding upon the heirs, executors, administrators, successors and
      assigns, as such terms shall apply, of any and all parties hereto, present
      and future merger including subsequent parties to this Plan due to a
      merger, consolidation, or Change in Control of its
  Company.

            

    

    

    
      	
              16.8

            	
              Action
      by Company - Whenever under the terms of the Plan the Company is
      permitted or required to take some action, such action may be taken by any
      officer of the Company who has been duly authorized by the Board of
      Directors of the Company.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      	
              16.9

            	
              Compliance
      with Applicable Guidance – Notwithstanding anything herein to the
      contrary, the Plan shall be interpreted in a manner so as to comply with
      any Applicable Guidance.  In the event of Applicable Guidance
      that is contrary to any Plan provision, the Company, as of the effective
      date of the Applicable Guidance, will operate the Plan in conformance
      therewith and will disregard any inconsistent Plan provision. Any such
      Applicable Guidance is deemed to be incorporated by reference into the
      Plan and to supersede any contrary Plan provision during any period in
      which the Company is permitted to comply operationally with the Applicable
      Guidance and before a formal Plan amendment is
  required.

            

    

    

    IN
WITNESS WHEREOF, First Community Bancshares, Inc has caused these presents to be
signed by its duly authorized directors and its seal to be hereunto affixed,
this 16th day of
December, 2010.

    

    First Community Bancshares,
Inc

    

    
      	
              By:

            	
               /s/ William P. Stafford,
      II

            	 
      
	 
      	
              Chairman
      of Board of Directors

            	 
      

    

    

    The Following Directors
acknowledge that they are a participant under this restated
Plan:

    

    
      
        
          	
                  Allen
      T. Hammer:

                	 
      	
                  /s/ Allen T. Hamner

                	 
      	
                  Date:

                	
                  December 16, 2010

                
	 
      	 
      	 
      	 
      	 
      
	
                   I.
      Norris Kantor:

                	 
      	
                  /s/ I. Norris Kantor

                	 
      	
                  Date:

                	
                  December 16, 2010

                
	 
      	 
      	 
      	 
      	 
      
	
                  Aldo
      A. Modena:

                	 
      	
                  /s/ Aldo A. Modena

                	 
      	
                  Date:

                	
                  December 16, 2010

                
	 
      	 
      	 
      	 
      	 
      
	
                  Robert
      E. Perkinson, Jr.:

                	 
      	
                  /s/ Robert E. Perkinson

                	 
      	
                  Date:

                	
                  December 16, 2010

                
	 
      	 
      	 
      	 
      	 
      
	
                  William
      P. Stafford:

                	 
      	
                  /s/ William P. Stafford

                	 
      	
                  Date:

                	
                  December 16, 2010

                
	 
      	 
      	 
      	 
      	 
      
	
                  William
      P. Stafford, II:

                	 
      	
                  /s/ William P. Stafford, II

                	 
      	
                  Date:

                	
                  December 16, 2010

                
	 
      	 
      	 
      	 
      	 
      
	
                  Richard
      S. Johnson:

                	
                    

                	
                  /s/ Richard S. Johnson

                	
                    

                	
                  Date:

                	
                  December 16,
2010Exhibit
10.2

    

    WAIVER
AGREEMENT

      

    THIS WAIVER AGREEMENT,
hereinafter referred to as “Waiver” made and entered into on this 16th day of
December, 2010, to be effective January 1, 2011 by and between JOHN M. MENDEZ, hereinafter
referred to as “Employee,” and FIRST COMMUNITY BANCSHARES, INC.,
hereinafter referred to as “the Corporation” (both of whom together are
referred to herein as the “Parties”) to a specific clause of the “AMENDED AND RESTATED EMPLOYMENT
AGREEMENT”, hereinafter referred to as “Agreement”, originally entered
into by the Parties as of the 16th day of
December, 2008 and to a specific clause of the “FIRST COMMUNITY BANCSHARES, INC. and
AFFILIATES EXECUTIVE RETENTION PLAN”, hereinafter referred to as the
“SERP”, which became effective January 1, 2005.

    

    WITNESSETH

    

    WHEREAS, Section 2 of the
Agreement, entitled “Compensation and Benefits”, stipulates that a
portion of the annual adjustment to the Employee’s base salary is to be
comprised of “(i) an increase equivalent to the base salary times the annual
percentage increase in the Consumer Price Index for the preceding twelve months
...”; and

    

    WHEREAS, the parities
acknowledge that despite such annual increase in the Consumer Price Index
(“CPI”) no adjustment to the Employee’s base salary has occurred;
and

    

    WHEREAS, the SERP was designed
so that the Corporation could provide the Employee an annual retirement benefit
equal to a maximum of thirty-five percent (35%) of “Final Average Compensation”
(as defined in the SERP) with payments to commence after a separation from
service coupled with reaching “normal” or “early retirement” age and further “subject
to a maximum benefit of $80,000 per calendar year” as specifically set
forth in the last clause of “ARTICLE 4 – NORMAL RETIREMENT” under Paragraph 4.2
(a) (1) of the SERP; and

    

    WHEREAS, the Employee has
requested that the Corporation consider waiving the maximum benefit provisions
in the SERP, which waiver would result in retaining the maximum benefit at
thirty-five percent (35%) of “Final Average Compensation”, but eliminating or
waiving the provision that would otherwise limit the maximum benefit to no more
than $80,000 per calendar year; and

    

    WHEREAS, the Corporation has,
in turn, requested that the Employee waive any and all rights under the
Agreement to any increase in base salary based upon increases in the CPI whether
such increases in the CPI occurred previously or might occur prospectively;
     

    

    NOW, THEREFORE, in
consideration of the mutual covenants herein set forth and for other good and
valuable consideration, the Parties do hereby agree as follows:

     

    
      	
               
      

            	
              1.

            	
              The
      Corporation does hereby agree to amend the SERP to eliminate the
      limitation on the Employee’s annual retirement benefit to a maximum of
      $80,000 per calendar year.

            

    

     

    
      	
               
      

            	
              2.

            	
              The
      Employee does hereby agree to and does hereby waive his contractual right
      to that portion of any past, present or future adjustment to the
      Employee’s base salary calculated upon an annual increase in the CPI and
      further agrees that by signing below he and the Corporation are amending
      his employment agreement to incorporate such
  waiver.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    In
Witness whereof, the parties hereby acknowledge that each has carefully read
this Waiver Agreement and they do hereby agree to be bound by its terms and have
executed this Waiver Agreement as set forth hereinabove and that upon execution
of this document, the Parties shall have a conforming copy for their permanent
records.

    

    This
Waiver Agreement is entered into on the date first above written with an
effective date of January 1, 2011, but for purposes of complying with Internal
Revenue Code Section 409A only the SERP is effective as of January 1,
2005.

    

    
      
        	
                Corporation:

              	 
      	
                Employee:

              
	
                First
      Community Bancshares, Inc.

              	 
      	
                John
      M. Mendez

              
	
                By:

              	
                /s/ William P. Stafford, II

              	 
      	
                By:

              	
                /s/ John M.
  Mendez

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]