Document:

Exhibit 10.31

                            SEVENTH AMENDMENT TO
              AMENDED AND RESTATED WAREHOUSING CREDIT AGREEMENT
              -------------------------------------------------

      THIS SEVENTH  AMENDMENT  TO  AMENDED AND  RESTATED  WAREHOUSING  CREDIT
 AGREEMENT (the "Seventh Amendment") is made and entered into as of  the 29th
 day of August,  2004, by and  among (i)UNITED FINANCIAL  MORTGAGE CORP.,  an
 Illinois corporation with  its principal place  of business  located at  815
 Commerce Drive,  Suite  100, Oak  Brook,  Illinois 60523  ("United"  or  the
 "Company"), (ii)  (a) NATIONAL  CITY BANK  OF KENTUCKY,  a national  banking
 association with a  place of  business located  at 101  South Fifth  Street,
 Louisville, Kentucky 40202 ("National City"),  (b) BANK ONE, NA, a  national
 banking association with its principal place of business located in Chicago,
 Illinois ("Bank One"),  (c) COMERICA  BANK, a  Michigan banking  corporation
 with its principal place  of business located at  500 Woodward Avenue, MC:
 3256, Detroit,  Michigan   48226 ("Comerica"),  (d) COLONIAL  BANK, N.A.,  a
 national banking association with a principal  place of business located  at
 201 E. Pine  Street, Suite 730,  Orlando, Florida   32801 ("Colonial"),  and
 HSBC BANK USA, a New York state banking corporation with its principal place
 of business at One HSBC Center, 27th Floor, Buffalo, New York 14203 ("HSBC")
 (National City, Bank One, Comerica, Colonial and HSBC are each  individually
 referred to as a "Bank" and collectively as the "Banks"), and (iii) NATIONAL
 CITY BANK OF  KENTUCKY, in  its capacity  as Agent  for the  Banks (in  such
 capacity, the "Agent").

      P R E L I M I N A R Y   S T A T E M E N T:

      A.   Pursuant to that certain  Amended and Restated Warehousing  Credit
 Agreement dated as  of August 1,  2003, among the  Company, the Banks  party
 thereto  and  the  Agent,  as  heretofore  amended  (the  "Existing   Credit
 Agreement"), the Agent and the Banks have established a warehousing line  of
 credit facility in  favor of the  Company in the  current maximum  principal
 amount of One Hundred Ten Million Dollars ($110,000,000.00) (the  "Warehouse
 Line"), for the purposes set forth therein.

      B.   The Company has now requested that  the Agent and Banks amend  the
 Existing Credit Agreement to extend the Maturity Date to September 30, 2004.

      C.   The Agent and  the Banks are  willing to and  desire to amend  the
 Existing Credit Agreement in the manner described above, upon the terms  and
 conditions set forth herein.

      NOW, THEREFORE,  in  consideration  of  the  premises  and  the  mutual
 covenants and  agreements set  forth in  the Existing  Credit Agreement  and
 herein, and  for  other  good and  valuable  consideration,  the  mutuality,
 receipt and sufficiency of which are hereby acknowledged, the parties hereto
 hereby agree as follows:

      1.   Each capitalized  term  used herein,  unless  otherwise  expressly
 defined herein, shall  have the  meaning set  forth in  the Existing  Credit
 Agreement.

      2.   The following  definition,  as  contained  in  Article  1  of  the
 Existing Credit Agreement, is hereby amended and restated in its entirety to
 read as follows:

           "Maturity Date" shall mean September  30, 2004; provided that  the
 Agent and  the  Banks  shall  have  the  option,  in  their  sole,  absolute
 discretion, either one  time or from  time to time,  to extend the  Maturity
 Date for an additional period not  to exceed three hundred sixty four  (364)
 days.  If the Maturity Date is extended, the term "Maturity Date" shall mean
 the date of expiration of such extension.

      3.   The Company represents and warrants that  no Event of Default  has
 occurred to  date under  the Existing  Credit Agreement  or any  other  Loan
 Document and that no Unmatured Event  of Default currently exists under  any
 of the Loan Documents.

      4.   This  Seventh  Amendment   may  be   executed  in   one  or   more
 counterparts, each of which shall constitute an original and all of the same
 shall constitute one and the same instrument.

      5.   This Seventh  Amendment  shall be  effective  as of  the  date  of
 delivery to the Agent of each of the following:  (i) this Seventh  Amendment
 and each  of the  other agreements  and instruments  referred to  herein  or
 related hereto, each duly executed by each of the parties thereto, and  (ii)
 all such other security documents, opinions, instruments and certificates as
 may be  required  by  Agent  or  its counsel  in  order  to  consummate  the
 transactions contemplated herein.

      6.   This Seventh Amendment and the related writings and the respective
 rights and obligations of  the parties shall be  governed by, and  construed
 and enforced in accordance with, the laws of the Commonwealth of Kentucky.

      7.   This Seventh Amendment shall be binding  upon, and shall inure  to
 the benefit of, the  Company, the Banks and  the Agent and their  respective
 successors and assigns.

      8.   This Seventh Amendment and  the agreements, instruments and  other
 documents referred to herein, constitute the entire agreement of the parties
 with respect to, and supersede all prior understandings of the parties  with
 respect to the subject matter hereof.  No change, modification, addition  or
 termination of this Seventh Amendment shall be enforceable unless in writing
 signed by the party against whom enforcement is sought.

      9.   The Company hereby makes, declares, ratifies and/or reaffirms,  as
 applicable, all of  the representations,  warranties, covenants,  agreements
 and obligations set forth in the  Existing Credit Agreement and each of  the
 other Loan Documents, as amended and modified hereby.

        [The remainder of this page has been intentionally left blank]

<PAGE>

      IN WITNESS  WHEREOF,  the  parties  hereto  have  caused  this  Seventh
 Amendment to Amended and  Restated Warehousing Credit  Agreement to be  duly
 executed as of the day and year first above written.

                          UNITED FINANCIAL MORTGAGE CORP.

                          By: _______________________________________

                          Title: ______________________________________

                                    (the "Company")

                          NATIONAL CITY BANK OF KENTUCKY

                          By: ______________________________________

                          Title: _____________________________________

                          BANK ONE, NA

                          By: ________________________________________

                          Title: _______________________________________

                          COMERICA BANK

                          By: ________________________________________

                          Title: _______________________________________

                          COLONIAL BANK, N.A.

                          By: ________________________________________

                          Title: _______________________________________

                          HSBC BANK USA

                          By: ______________________________________

                          Title: _____________________________________

                                    (collectively, the "Banks")

                          NATIONAL CITY BANK OF KENTUCKY

                          By: _____________________________________

                          Title: ____________________________________

                                    (the "Agent")SERP amended and restated through 9/15/04

	

HUDSON UNITED BANCORP
INC. 

SUPPLEMENTAL EMPLOYEES’ RETIREMENT PLAN 

(As
Amended and Restated Effective October 1, 2002, and As Further Amended Through 
September
15, 2004)

	TABLE OF CONTENTS	PAGE
	 	 		 	 	 
	PREAMBLE	 		 	1	 
	 	 		 	 	 
	ARTICLE I DEFINITIONS	 	 	 	2	 

	1	.1	Actuarial Equivalent	 	2	 
	1	.2	Anniversary Date	 	2	 
	1	.3	Average Monthly Compensation	 	2	 
	1	.4	Board of Directors	 	2	 
	1	.5	Change of Control	 	3	 
	1	.6	Company	 	4	 
	1	.7	Compensation	 	4	 
	1	.8	Compensation Committee	 	5	 
	1	.9	Credited Service	 	5	 
	1	.10	Early Retirement Date	 	5	 
	1	.11	Eligible Employee	 	5	 
	1	.12	Employer	 	5	 
	1	.13	Member	 	5	 
	1	.14	Monthly Covered Compensation	 	5	 
	1	.15	Normal Retirement Date	 	5	 
	1	.16	Pension Plan	 	5	 
	1	.17	Pension Plan Benefit	 	6	 
	1	.18	Plan	 	6	 
	1	.19	Plan Year	 	6	 
	1	.20	SERP Benefit	 	6	 
	1	.21	Years of Service	 	6	 

	ARTICLE II PARTICIPATION	 		 	6	 

	ARTICLE III SERP BENEFIT	 	 	 	7	 

	3	.1	Amount of SERP Benefit	 	7	 
	3	.2	Benefits Upon Reemployment	 	7	 

	ARTICLE IV VESTING	 		 	6	 

	ARTICLE V DEATH BENEFITS	 	 	 	8	 

	5	.1	Death Prior to SERP Benefit Commencement	 	8	 
	5	.2	Death After SERP Benefit Commencement	 	9	 

	ARTICLE VI TIME AND FORM OF PAYMENT	 		 	9	 

	6	.1	Time of Payment	 	9	 
	6	.2	Form of Payment	 	9	 
	6	.3	Calculation of Lump Sum Amount	 	9	 

	ARTICLE VII ADMINISTRATION	 		 	12	 

	7	.1	Compensation Committee	 	12	 
	7	.2	Responsibilities and Powers of the Compensation Committee	 	12	 
	7	.3	Operation of the Compensation Committee	 	12	 
	7	.3	Indmenification	 	13	 

	ARTICLE VIII MISCELLANEOUS	 		 	13	 

	8	.1	Benefits Payable by the Employer	 	13	 
	8	.2	Amendment of Termination	 	14	 
	8	.3	Status of Employment	 	15	 
	8	.4	Payments to Minors and Incompetents	 	15	 
	8	.5	Inalienability of Benefits	 	15	 
	8	.6	Taxes	 	15	 
	8	.7	Governing Law	 	16	 

	APPENDIX A	 		 	17	 

	

PREAMBLE 

Effective as of January 1, 1996,
Hudson United Bancorp (the “Company”) established the Hudson United Bancorp
Supplemental Employees’ Retirement Plan (the “Plan”). Effective
October 1, 2002, the Company is amending and restating the Plan in its entirety as
hereinafter set forth in this plan document. The Plan, as amended and restated herein, is
a continuation of the Plan as amended and in effect on December 31, 2001. Adoption of
this amended and restated Plan shall not have the effect of reducing any Member’s
benefit accrued under the Plan as of the date of adoption. 

The Plan is intended to constitute an
unfunded pension plan maintained primarily for a select group of management or highly
compensated employees which is exempt from Parts 2, 3, and 4 of Title I of the
Employee Retirement Income Security Act of 1974, as amended. The Plan provides pension
benefits which are in addition to the benefits provided under the Employee’s
Retirement Plan of Hudson United Bancorp (the “Pension Plan”). The Plan is not a
qualified plan under the Code and benefits are paid by the Employer out of its general
assets when due. 

	

ARTICLE I 

Definitions 

1.1   Actuarial Equivalent 

	  	
“Actuarial Equivalent” means an amount or benefit of equal value based on the following interest
rate and mortality table: 

	  	
Mortality:
 1983 Group  Annuity  Mortality  Table  weighted  fifty  percent  (50%) male and
                           fifty percent (50%) female. 

	  	
Interest:
The interest discount rate used by Hudson United Bancorp to calculate pension expense in
accordance with Statement of Financial Accounting Standards No. 87 for the Plan Year
in which the Member receives a distribution from the Plan. 

	  	
All factors will be interpolated based on years and completed months.  

1.2   Anniversary Date 

	  	
“Anniversary
Date” means the Anniversary Date as defined in the Pension Plan.  

	

1.3   Average Monthly
Compensation 

	  	
“Average
Monthly Compensation” means the Member’s Compensation averaged over the sixty
(60) consecutive months of Credited Service in the prior one hundred twenty (120)
consecutive months which produce the highest average if as of the date of determination he
has been an Employee for more than sixty (60) consecutive months, or the Member’s
total months of Credited Service if as of the date of determination he has been an
Employee less than sixty (60) consecutive months. Compensation subsequent to termination
of participation in the Plan shall not be recognized. 

	

1.4   Board of Directors 

	  	
“Board of Directors” means the Board of Directors of Hudson United Bancorp 

	

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1.5   Change of Control 

	  	
“Change
of Control” means the occurrence of any of the following events with respect to the
Company:  

	(a)  	  	The
acquisition of the beneficial ownership, as defined under the Exchange Act,
               of twenty-five (25%) or more of the Company’s voting securities or
all or                substantially all of the assets of the Company by a single person
or entity or                group of affiliated persons or entities;  

	(b) 	  	The
merger, consolidation or combination of the Company with an unaffiliated
               corporation in which the directors of the Company as applicable
immediately                prior to such merger, consolidation or combination constitute
less than a                majority of the board of directors of the surviving, new or
combined entity                unless one-half of the board of directors of the
surviving, new or combined                entity were directors of the Company
immediately prior to such transaction and                the Company’s chief
executive officer immediately prior to such transaction                continues as the
chief executive officer of the surviving, new or combined                entity; or  

	(c) 	  	During
any period of two (2) consecutive calendar years, individuals who at the
               beginning of such period constitute the Board of Directors of the Company
cease                for any reason to constitute at least two-thirds (2/3) thereof,
unless the                election or nomination for the election by the Company’s
stockholders of                each new director was approved by a vote of at least
two-thirds (2/3) of the                directors then still in office who were directors
at the beginning of the                period; or  

	(d) 	  	The
transfer of all or substantially all of the Company’s assets or all or
               substantially all of the assets of its primary subsidiaries.  

	  	
For
purposes of this Plan, a Change in Control of the Company shall be deemed to occur on the
earlier of:  

	(e) 	  	The
first date on which a single person or entity or group of affiliated persons
               or entities acquire the beneficial ownership of twenty-five (25%) or more
of the                Company’s voting securities; or  

	

3

	(f) 	  	Forty-five
(45) days prior to the date the Company enters into a definitive                agreement
to merge, consolidate, combine or sell the assets of the Company;                provided
however, that for purposes of any resignation by a Member, the Change                in
Control shall not be deemed to occur until the consummation of the merger,
               consolidation, combination or sale, as the case may be, except if this
Plan is                not expressly assumed in writing by the acquiring company, then
the Change in                Control shall be deemed to occur the day before the
consummation; and further                provided that if any definitive agreement to
merge, consolidate, combine or sell                assets is terminated without
consummation of the acquisition, then no Change in                Control shall have been
deemed to have occurred; or  

	(g) 	  	The
date upon which the election of directors occurs qualifying under Section
               (c) above.  

	

1.6   Company 

	  	
“Company”means
Hudson United Bancorp

	

1.7   Compensation 

	  	
“Compensation”
means one-twelfth (1/12th) of a Member’s annual rate of compensation, including cash
bonus, but excluding overtime pay, commissions, other extraordinary payments,
reimbursements or other expense allowances, fringe benefits (cash and non-cash), moving
expenses, deferred compensation, and welfare benefits, paid by the Employer to such
Employee for services rendered by him to the Employer as may be reflected on Form W-2
issued by the Employer to the Employee for the calendar year immediately preceding the
Anniversary Date. If the Member had not been employed for a full calendar year, his annual
rate of compensation from the Employer as of the Anniversary Date shall be treated as his
annual compensation for such year. Notwithstanding the foregoing, Compensation shall
include any amount which is contributed by the Employer pursuant to a salary reduction
agreement and which is not includible in the gross income of the Employee under Sections
125, 402(e)(3), 402(h)(1)(B), or 403(b) of the Code. 

	

4

	

1.8  Compensation
Committee 

	  	
“Compensation
Committee” means the Compensation Committee of the Board of Directors.  

	

1.9   Credited Service 

	  	
“Credited
Service” means the Member’s Credited Service under the Pension Plan; provided,
however, that, notwithstanding the foregoing, Credited Service for purposes of the Plan
shall not include any period of service with an employer whose business has merged with or
has been taken over by the Employer. 

	

1.10   Early Retirement
Date 

	  	
“Early
Retirement Date” means the Early Retirement Date as defined in the Pension Plan.  

	

1.11   Eligible Employee 

	  	
“Eligible
Employee” means any person employed by the Employer who is a participant in the
Pension Plan.  

	

1.12   Employer 

	  	
“Employer”
shall mean the Company, any successor thereto, and any member of the controlled group of
corporations which includes the Company which adopts the Plan with the consent of the
Compensation Committee. 

	

1.13   Member 

	  	
“Member”means
an Eligible Employee who becomes a Member pursuant to Article II.  

	

1.14   Monthly Covered
Compensation 

	  	
“Monthly
Covered Compensation” means Monthly Covered Compensation as defined in the Pension
Plan.  

	

1.15   Normal Retirement
Date 

	  	
“Normal
Retirement Date” means the Normal Retirement Date as defined in the Pension Plan.  

	

1.16   Pension Plan 

	  	
“Pension
Plan” means the Employees’ Retirement Plan of Hudson United Bancorp

	

5

	

1.17   Pension Plan Benefit 

	  	
“Pension
Plan Benefit” means the aggregate annual retirement benefit payable to or on account
of a Member from the Pension Plan. 

	

1.18   Plan 

	  	
“Plan”
means this Hudson United Bancorp Supplemental Employees’ Retirement Plan, as set
forth herein, as amended from time to time. 

	

1.19   Plan Year 

	  	
“Plan
Year” means each twelve (12) consecutive month period commencing each January 1
and ending on the following December 31. 

	

1.20   SERP Benefit 

	  	
“SERP
Benefit” shall mean the annual retirement benefit payable pursuant to the terms of
this Plan.  

	

1.21   Years of Service 

	  	
“Years
of Service” means Years of Service as defined under the Pension Plan for vesting
purposes.  

	1.22	For purposes of this Plan, unless the context requires otherwise, the masculine
includes the feminine, the singular the plural, and vice-versa. Any reference to a “Section” or
“Article” shall mean the indicated section or article of this Plan unless
otherwise specified.  

	

ARTICLE II 

Participation 

An Eligible Employee listed in
Appendix A shall remain a Member of the Plan effective as of October 1, 2002.
Each other Eligible Employee shall become a Member upon appointment by the Compensation
Committee, effective as of the effective date specified by the Compensation Committee and
contingent upon his or her executing and delivering to the Compensation Committee a
Participation Agreement in the form specified by the Compensation Committee. 

6

	

ARTICLE III 

SERP Benefit 

3.1   Amount of SERP
Benefit 

	  	
Each
Member who retires on or after his Normal Retirement Date under the Pension Plan shall be
entitled to a SERP Benefit. The amount of a Member’s SERP Benefit shall be equal to
the sum of (a) and (b) minus (c) and multiplied by (d) as follows: 

	(a) 	  	one
percent (1%) of his Average Monthly Compensation multiplied by his number of
               years of Credited Service; plus  

	(b) 	  	one-half
of one percent (1/2%) of his Average Monthly Compensation in excess of                his
Monthly Covered Compensation multiplied by his number of years of Credited
               Service; minus  

	(c) 	  	the
Member’s vested Pension Plan Benefit, expressed as a straight life
               annuity with no ancillary benefits; multiplied by  

	(d) 	  	the
Member’s vested percentage determined in accordance with                Article IV.  

	  	
For
purposes of (c) above, a Member’s Pension Plan Benefit shall be computed without
regard to any Credited Service (as defined in the Pension Plan) which is applicable to a
period of service with an employer whose business was merged with or taken over by an
Employer. 

	

3.2   Benefits Upon
Reemployment 

	  	
If
a Member is rehired after he is entitled to a SERP Benefit, his SERP Benefit shall not be
paid during such period of reemployment prior to Normal Retirement Date, but shall
commence or resume not sooner than the first day of the month following his subsequent
retirement or separation. The SERP Benefit payable after his subsequent retirement or
separation shall be the benefits earlier applicable, plus any additional benefits computed
in accordance with Section 3.1 insofar as additional employment entitled him to additional
benefits. 

	

7

	

ARTICLE IV 

Vesting 

A Member shall be vested in his SERP
Benefit in accordance with the following schedule: 

	 	Year(s) of Service	 	Vested Percentage
	 	 	 	 	 
	 	Less than 1 Year of Service	 	0	%
	 	 	 
	 	1 Year of Service, but less than	 
	 	2 Years of Service	 	20	%
	 	 	 
	 	2 Years of Service, but less than	 
	 	3 Years of Service	 	40	%
	 	 	 
	 	3 Years of Service, but less than	 
	 	4 Years of Service	 	60	%
	 	 	 
	 	4 Years of Service, but less than	 
	 	5 Years of Service	 	80	%
	 	 	 

	 	5 or More Years of Service	 	100	%
	 	 

	

If a Member terminates employment
with the Employer and each affiliated employer with less than five (5) Years of Service,
any portion of the Member’s SERP Benefit which is not vested shall be forfeited. 

Notwithstanding the foregoing, a
Member shall be one hundred percent (100%) vested in his SERP Benefit accrued as of a
Change of Control. 

ARTICLE V 

Death Benefits 

5.1   Death Prior to SERP
Benefit Commencement 

	  	
If
the Member dies prior to commencement of the SERP Benefit, the Member’s surviving
spouse shall be entitled to a survivor annuity which is equal to the SERP Benefit the
Member would have received if he retired the day prior to his death and elected a single
life annuity form of payment under the Pension Plan. In the event the Member’s death
occurs prior to the date the Member would have been eligible for Early Retirement under
the Pension Plan, the Member’s SERP Benefit shall be calculated under Section 3.1,
reduced in accordance with reduction factors specified in the Pension Plan for Early
Retirement to age fifty-five (55) and reduced on an Actuarial Equivalent basis for the
period of time prior to the Member’s attainment of age fifty-five (55). Such SERP
Benefit shall be payable to the surviving spouse until his/her date of death. 

	

8

	

5.2   Death After SERP
Benefit Commencement 

	  	
If
the Member dies after commencement of the SERP Benefit, the Member’s surviving spouse
shall receive a one hundred percent (100%) survivor annuity equal to the SERP Benefit the
Member had been receiving. Such SERP Benefit shall be payable to the surviving spouse
until his/her date of death. 

	

ARTICLE VI 

Time and Form of
Payment 

6.1   Time of Payment 

	  	
Payment
of a Member’s SERP Benefit under Article III of this Plan will commence at the
same time as the Member’s Pension Plan Benefit under the Pension Plan. Except as
hereinafter provided, in the event the Member retires prior to reaching his Normal
Retirement Date, his SERP Benefit shall be reduced in accordance with the reduction
factors specified in the Pension Plan for Early Retirement. If the Member retires in
accordance with Section 7.1(c) of the Pension Plan because of disability, an unreduced
SERP Benefit shall be payable to the Member. If a Member ceases to receive a disability
benefit under Section 7.1(c) of the Pension Plan because the Member is no longer disabled,
annuity payments being made under this Plan shall also cease. 

	

6.2   Form of Payment 

	  	
Upon
becoming a Member in the Plan or, if later, within thirty (30) days of the adoption of
this restated Plan, the Member shall elect the form of distribution of his SERP Benefit on
a form provided by the Compensation Committee for such purpose. If a Member fails to
timely elect a form of distribution, the default election shall be the option described in
Section 6.2(a). An election hereunder shall be irrevocable except as hereinafter provided.
A Member may elect a different form of distribution in accordance with procedures
established by the Compensation Committee. However, any such election shall be null and
void if made less than twelve (12) months prior to the Member’s termination of
employment in which case the form of distribution shall be determined by the terms of the
last election (including a default election) validly in effect. The following distribution
options are available: 

	

9

	(a) 	  	A
joint and one hundred percent (100%) survivor annuity which provides monthly
               payments to the Member for the Member’s life and one hundred percent
(100%)                of the amount payable to the Member paid to his/her surviving
spouse until the                date of such spouse’s death.  

	(b) 	  	A
joint and fifty percent (50%) survivor annuity which provides increased
               monthly payments to the Member for the Member’s life and fifty
percent                (50%) of the amount payable to the Member paid to his/her
surviving spouse until                the date of such spouse’s death.  

	(c) 	  	A
joint and seventy-five percent (75%) survivor annuity which provides increased
               monthly payments to the Member for the Member’s life and seventy-five
               percent (75%) of the amount payable to the Member paid to his/her
surviving                spouse until the date of such spouse’s death.  

	(d) 	  	A
lump sum amount which is the Actuarial Equivalent of the SERP Benefit
               described in (a) above, calculated in accordance with Section 6.3 payable
as                soon as administratively practicable following the Employee’s
termination                of employment other than by reason of death. The lump sum
shall include the                value of the survivor annuity payable pursuant to
Section 5.2.  

	(e) 	  	A
straight life annuity which provides increased monthly payments to the Member
               for the Member’s life and which terminates on the Member’s
death.                Notwithstanding the above provision that any election for a change
in the form                of distribution shall be null and void if made less than
twelve (12) months                prior to the Member’s termination of employment,
any Member may elect this                option (e) by October 14, 2004, and such
election shall be valid.  

	

10

	  	
For
purposes of this Article VI, an Employee shall not be deemed to have terminated
employment until he has terminated employment with the Employer and any affiliated
employer. 

	  	
In
the event the Member has less than five (5) Years of Service as of the date the Member
terminates employment, the Compensation Committee shall pay the Member’s SERP Benefit
in a lump sum under Section 6.3 notwithstanding any prior election made by the Member. 

	  	
Notwithstanding
a Member’s election of an optional form under Section 6.2(a), (b), (c), or (e), any
Member may elect to have the SERP benefit paid as a lump sum in accordance with Section
6.2(d) in the event that a Change of Control occurs before benefit payments commence to
the Member. Such election shall be made upon becoming a Member in the Plan or, if later,
by October 14, 2004. Notwithstanding the above provision that any election for a change in
the form of distribution shall be null and void if made less than twelve (12) months prior
to the Member’s termination of employment, any Member who elects this optional Change
of Control feature by October 14, 2004 will not be subject to such twelve (12) month
limitation, and such election therefore shall be valid. 

	

6.3   Calculation of Lump
Sum Amount 

	  	
A
lump sum amount payable under the Plan shall be calculated by determining the amount of
the monthly immediate annuity payable in accordance with the otherwise applicable
provisions of the Plan in the distribution form described in Section 6.2(a) and
multiplying such amount by a factor derived from the Actuarial Equivalent assumptions
described in Section 1.1. 

	

11

	

ARTICLE VII 

Administration 

7.1   Compensation
Committee 

	  	
The
Compensation Committee shall supervise the daily management and administration of the
Plan. The members of the Compensation Committee shall serve without compensation. 

	

7.2   Responsibilities and
Powers of the Compensation Committee 

	  	
The
Compensation Committee shall have the responsibility:  

	(a) 	  	To
administer the Plan in accordance with the terms hereof, and to exercise all
               powers specifically conferred upon the Compensation Committee hereby or
               necessary to carry out the provisions thereof.  

	(b) 	  	To
construe the Plan, which construction shall be conclusive, correct any
               defects, supply omissions, and reconcile inconsistencies to the extent
necessary                to effectuate the Plan.  

	(c) 	  	To
keep all records relating to Members of the Plan and such other records as
               are necessary for proper operation of the Plan.  

	(d) 	  	To
provide each Member with a statement of their benefit within thirty days
               after their termination of employment.  

	

7.3   Operation of the
Compensation Committee 

	  	
In
carrying out the Compensation Committee’s functions hereunder:  

	(a) 	  	The
Compensation Committee may adopt rules and regulations necessary for the
               administration of the Plan and which are consistent with the provisions
hereof.  

	(b) 	  	All
acts and decisions of the Compensation Committee shall be approved by a
               majority of the members of the Compensation Committee and shall apply
uniformly                to all Members in like circumstances. Written records shall be
kept of all acts                and decisions.  

	

12

	(c) 	  	The
Compensation Committee may authorize one or more of its members to act on
               its behalf. The Compensation Committee may also delegate, in writing, any
of its                responsibilities and powers to an individual(s) who is not a
Compensation                Committee member.  

	(d) 	  	The
Compensation Committee shall have the right to hire, at the expense of the
               Employer, such professional assistants and consultants as it, in its sole
               discretion, deems necessary or advisable, including, but not limited to,
               accountants, actuaries, consultants, counsel and such clerical assistance
as is                necessary for proper discharge of its duties.  

	

7.4   Indemnification 

	  	
In
addition to any other indemnification that a fiduciary, including but not limited to a
member of the Compensation Committee, is entitled to, the Employer shall indemnify such
fiduciary from all claims for liability, loss or damage (including payment of expenses in
connection with defense against such claim) arising from any act or failure to act which
constitutes a breach of such individual’s fiduciary responsibilities with respect to
this Plan under any aspects of the law. 

	

ARTICLE VIII 

Miscellaneous 

8.1   Benefits Payable by
the Employer 

	  	
All
benefits payable under this Plan constitute an unfunded obligation of the Employer.
Payments shall be made, as due, from the general funds of the Employer. The Employer, at
its option, may maintain one or more bookkeeping reserve accounts to reflect its
obligations under the Plan and may make such investments as it may deem desirable to
assist it in meeting with obligations. Nothing contained in this Section 8.1 shall limit
the ability of the Employer to pay benefits hereunder through a Rabbi Trust. Any such
investments shall be assets of the Employer subject to claims of its general creditors. No
person eligible for a benefit under this Plan shall have any right, title to interest in
any such investments. 

	

13

	

8.2   Amendment or
Termination 

	(a) 	  	The
Board of Directors reserves the right to amend, modify, or restate or
               terminate the Plan; provided, however, that no such action by the Board of
               Directors shall reduce a Member’s SERP Benefit accrued as of the time
               thereof. The provisions of this Section prohibiting an action by the Board
of                Directors which would reduce a Member’s accrued SERP Benefit
cannot be                amended without the consent of all Members (including those who
have retired).                Any amendment to the Plan shall be made in writing by the
Board of Directors,                with or without a meeting, or shall be made in writing
by the Compensation                Committee, to the extent that Board of Directors has
specifically delegated the                authority to make such amendment to the Plan to
the Compensation Committee.  

	(b) 	  	This
Plan constitutes the entire agreement of the Company with respect to the
               provision of SERP Benefits and cannot be modified orally or in any writing
other                than a resolution pursuant to the provisions of Section 8.2(a).  

	(c) 	  	If
the Plan is terminated, a determination shall be made of each Member’s
               SERP Benefit as of the Plan termination date (determined in accordance
with                Section 8.2(a)) as if the Member had terminated employment with the
Employer and                each affiliated employer on such date (or the Member’s
actual date of                termination of employment, if earlier). A Member’s
SERP Benefit, as                determined in accordance with the preceding sentence,
shall be one hundred                percent (100%) vested upon Plan termination if such
Member is an Employee on the                Plan termination date. The amount of such
vested SERP Benefit shall be payable                to the Member in accordance with the
otherwise applicable terms of the Plan                unless the Plan is amended to
provide otherwise and the Member consents in                writing to such amendment. In
the event payment of a SERP Benefit occurs prior                to the date the Member
would be eligible for Early Retirement under the Pension                Plan by reason of
the termination of the Plan, the Member’s SERP Benefit                shall be
calculated under Section 3.1, reduced in accordance with the reduction
               factors specified in the Pension Plan for Early Retirement to age
fifty-five                (55) and reduced on an Actuarial Equivalent basis for the
period of time prior                to the Member’s attainment of age fifty-five
(55).  

	

14

	

8.3   Status of Employment 

	  	
Nothing
herein contained shall be construed as conferring any rights upon any Member of any person
for a continuation of employment, nor shall it be construed as limiting in any way the
right of the Employer to discharge any Member or to treat him without regard to the effect
which such treatment might have upon him as a Member of the Plan. 

	

8.4   Payments to Minors
and Incompetents 

	  	
If
a Member or beneficiary entitled to receive any benefit hereunder is a minor or is deemed
by the Compensation Committee or is adjudged to be legally incapable of giving valid
receipt and discharge for such benefits, they will be paid to the duly appointed guardian
of such minor or incompetent or to such other legally appointed person as the Compensation
Committee might designate. Such payment shall, to the extent made, be deemed a complete
discharge of any liability for such payment under the Plan. 

	

8.5   Inalienability of
Benefits 

	  	
The
right of any person to any benefit or payment under the Plan shall not be subject to
voluntary or involuntary transfer, alienation or assignment, and, to the fullest extent
permitted by law, shall not be subject to attachment, execution, garnishment,
sequestration or other legal or equitable process. In the event a person who is receiving
or is entitled to receive benefits under the Plan attempts to assign, transfer or dispose
of such right, or if an attempt is made to subject said right to such process, such
assignment, transfer or disposition shall be null and void. 

	

8.6   Taxes 

	  	
It
is the intent of the Company that amounts deferred under the Plan shall not be subject to
federal income tax until distributed from the Plan. However, the Company does not
guarantee or warrant that Plan benefits will be excludable from a Member’s gross
income for federal or state income tax purposes until distributed, and the Member (or
Beneficiary) shall in all cases be liable for any taxes due on benefits attributable to
such Member or Beneficiary. 

	

15

	  	
The
Compensation Committee shall make appropriate arrangements to (a) withhold FICA/FUTA taxes
due on amounts accrued and vested under the Plan and (b) withhold federal and state income
taxes due on amounts distributed from the Plan. Further, the Compensation Committee may
make any arrangements it deems appropriate to withhold for any other taxes required to be
withheld by any government or governmental agency. 

	

8.7   Governing Law 

	  	
Except
to the extent pre-empted by federal law, the provisions of the Plan will be construed
according to the laws of the State of New Jersey. 

	

16

	

APPENDIX A 

The following Eligible Employee is a
Member of the Plan as of October 1, 2002: 

	  	
William
A. Houlihan
 James Mayo
 Kenneth T. Neilson 
Thomas R. Nelson

 James T. Rudgers 
Thomas J. Shara 
D. Lynn Van Borkulo-Nuzzo

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