Document:

EXHIBIT 10.25 - THE PEP BOYS SAVINGS PLAN AMENDMENT 2004-1

THE
PEP BOYS SAVINGS PLAN

AMENDMENT 2004-1

Pursuant to the authority
reserved to it under Section 10.1 of The Pep Boys Savings Plan (the “Plan”),
The Pep Boys - Manny, Moe & Jack (the “Company”) hereby amends the Plan as
follows:

1.          Effective
January 16, 2004, the first sentence of the definition of Annual Additions
under Section 2.1 of the Plan immediately following the definition of Affiliate
is hereby deleted in its entirety and the following language is hereby
substituted therefor:

	
   
	
  “Annual Additions means, with respect to each
  Limitation Year, the total of the Employer contributions and forfeitures
  allocated to a Participant’s Accounts pursuant to the provisions of the Plan
  (other than Pre-Tax Contributions made pursuant to Section 4.1(a)(ii) of the
  Plan), plus the total of any Participant contributions for such Limitation
  Year, plus amounts described in Sections 415(l)(1) and 419A(d)(2) of the
  Code, if any.”

2.          Effective
January 16, 2004, the introductory clause of the third paragraph of the
definition of Compensation under Section 2.1 of the Plan is hereby deleted in
its entirety and the following language is hereby substituted therefore:

             “For
purposes of Sections 4.5 and 4.7,”.

3.          Effective
January 16, 2004, Section 4.1(a) is hereby deleted in its entirety and the
following language is hereby substituted therefor:

	
   
	
  “(a)
	
  Pre-Tax Contributions
	
   

	
   
	
   
	
   
	
   

	
   
	
             (i)     Subject
  to the limitations of Sections 4.5 and 5.4, each Participant shall have the
  option to authorize the Employer, in writing and in accordance with
  procedures established by the Committee, to contribute to the Plan for a Plan
  Year on his behalf, an amount equal to any one half of a percentage of his
  Compensation from one half of a percent (0.5%) up to twelve percent (12%) (as
  determined without regard to this Section 4.1(a)) for such Plan Year.  Effective October 1, 1998, the foregoing
  limitation of twelve percent (12%) is increased to fifteen percent
  (15%).  Effective January 1, 2003, the
  foregoing limitation of fifteen percent (15%) is increased to fifty percent
  (50%).  The Committee shall have the
  discretion to apply a lower limitation to Highly Compensated Employees.  Such authorization shall be in the form of
  an election by the Participant to have his Compensation reduced by payroll
  withholding. Payroll deduction shall commence as soon as practicable
  following the Entry Date on which an Eligible Employee becomes a Participant
  or the date the Participant

	
   
	
  elects to make Pre-Tax Contributions to the Plan.
  Such withheld amounts are to be transmitted by the Employer to the Trustee as
  of the earliest date on which such amounts can reasonably be segregated from
  the Employer’s general assets. Effective February 3, 1997, such withheld
  amounts are to be transmitted by the Employer to the Trustee no later than
  the date required by DOL Reg. Section 2510.3-102(b). The amount of such
  contributions, together with contributions under Sections 4.1(c) and
  (d), shall not exceed the maximum amount allowable as a deduction under the
  Code for the Plan Year.

	
   
	
   

	
   
	
             (ii)     Effective
  January 16, 2004, in addition to the amount of Pre-Tax Contributions made
  pursuant to subsection (a)(i), the Employer shall make a Pre-Tax Contribution
  for the Plan Year to the Pre-Tax Contribution Account of each Participant who
  attains age 50 prior to the end of a Plan Year who, with respect to that Plan
  Year, has executed a salary reduction agreement between the Participant and
  the Employer that provides for an additional reduction in the amount of
  Compensation otherwise payable to the Participant in an amount not to exceed
  the dollar maximum in effect under section 414(v) of the Code, as in effect
  for the Plan Year (reduced by, to the extent required by the Code and
  applicable Treasury regulations, any other elective deferrals contributed on
  the Participant’s behalf pursuant to section 414(v) of the Code for the Plan
  Year); provided, however, that Pre-Tax Contributions shall be treated for all
  Plan purposes as contributed under subsection (a)(i) above in lieu of this
  subsection, unless the Participant is unable to make additional Pre-Tax
  Contributions under subsection (a)(i) above for the Plan Year due to
  limitations imposed by the Plan or applicable federal law.  Pre-Tax Contributions made pursuant to
  this subsection (a)(ii) shall not be taken into account for purposes of
  Sections 4.5 and 4.7 and the applicable limits under Section 402(g) of the
  Code.

	
   
	
   

	
   
	
             (iii)    Notwithstanding
  the foregoing, the Participant shall be prohibited from authorizing any
  Pre-Tax Contributions to be made on his behalf under this Plan and elective
  contributions under any other plan, in excess of the applicable limit under
  Section 402(g) of the Code in effect for the Plan Year to which such
  Pre-Tax Contributions relate. In the event a Participant has made excess
  deferrals under the Plan (or, if not, has determined that excess deferrals
  will be considered to exist under this Plan), then not later than the first
  day of April following the close of the Participant’s taxable year, the
  Participant may notify the Plan of the amount of the excess deferrals
  hereunder. The Participant shall be deemed to have notified the Plan of
  excess deferrals to the extent he has excess deferrals for the taxable year
  calculated by taking into account only elective deferrals under the Plan and
  other plans of the Employer or Affiliate. The Employer may notify the Plan on
  behalf of the Participant under these circumstances.

	
   
	
   

	
   
	
                      In
  the event the dollar limit described in the preceding paragraph is exceeded
  for a Participant, the Committee shall direct the Trustee (1) to the extent
  the Participant is eligible to make Pre-Tax Contributions pursuant to Section
  4.1(a)(ii) for the Plan Year (subject to the dollar maximum applicable to
  such 

2

	
   
	
  section), recharacterize the excess contributions as
  made pursuant to Section 4.1(a)(ii), and (2) to the extent the excess cannot
  be recharacterized in accordance with clause (1), distribute the amount
  designated above including any Income allocated thereto to the Participant by
  the April 15 following the end of the calendar year with respect to which the
  excess occurred.  The Income
  attributable to a Participant’s excess deferral pursuant to this
  Section 4.1(a)(iii) for the Plan Year during which such excess deferral
  arose shall be determined in accordance with Treas. Reg.
  §1.402(g)-1(e)(5)(ii). Unless provided for by the Committee, any Income
  attributable to a Participant’s excess deferrals for the period between the
  end of the Plan Year and the date of distribution shall be disregarded.
  Excess deferrals to be distributed for a Plan Year shall be reduced by Excess
  Contributions previously distributed for the Plan Year beginning in such
  taxable year as set forth in Section 4.5. Matching Contributions allocated by
  reason of any excess deferral distributed pursuant to this Section, together
  with any income allocated thereto for the calendar year to which the excess
  deferral relates, shall be forfeited at the time such distribution is made.
  For this purpose, however, the excess deferrals that are returned to the
  Participant shall be deemed to be first those Pre-Tax Contributions for which
  no Matching Contribution was made and second those Pre-Tax Contributions for
  which a Matching Contribution was made. Accordingly, if the Pre-Tax
  Contributions that are returned to the Participant as excess deferrals were
  not matched, no Matching Contributions will be forfeited.

	
   
	
   

	
   
	
                      A
  Participant who has excess deferrals for a taxable year may receive a
  corrective distribution of excess deferrals during the same year. This
  corrective distribution shall be made only if:

	
   
	
   

	
   
	
                                (A)     The
  Participant designates the distribution as an excess deferral. The
  Participant shall be deemed to have designated the distribution to the extent
  the Participant has excess deferrals for the taxable year calculated by
  taking into account only elective deferrals under the Plan and other plans of
  the Employer and Affiliate. The Employer may make the designation on behalf
  of the individual under these circumstances.

	
   
	
   

	
   
	
                                (B)     The
  correcting distribution is made after the date on which the Plan received the
  excess deferral.

	
   
	
   

	
   
	
                                (C)     The
  Plan designates the distribution as a distribution of excess deferrals.

	
   
	
   

	
   
	
                      The
  term “excess deferrals” means the excess of an individual’s elective deferrals
  for any taxable year, as defined in Treas. Reg. §1.402(g)-1(b), over the
  applicable limit under Section 402(g)(1) for the taxable year.

	
   
	
   

	
   
	
                      Notwithstanding
  the foregoing, the Committee may further limit a Participant’s right to make
  Pre-Tax Contributions to the Plan if in the sole

3

	
   
	
  judgment and discretion of the Committee, such
  limits are necessary to ensure the Plan’s compliance with the requirements of
  Sections 401(k) and (m) of the Code.

	
   
	
   

	
   
	
            (iv)     No
  Participant shall be permitted to have Pre-Tax Contributions made under this
  Plan, or any other qualified plan maintained by the Employer during any
  taxable year, in excess of the dollar limitation contained in Section 402(g)
  of the Code in effect for such taxable year, except to the extent permitted
  under Section 414(v) of the Code, if applicable.”

4.         Effective
January 16, 2004, the following sentence is hereby added to the third paragraph
of Section 4.1(c):

	
   
	
  “Matching Contributions shall not be made with
  respect to Pre-Tax Contributions made pursuant to Section 4.1(a)(ii).”

5.
         Effective January 16,
2004, the first sentence of the next to last paragraph of Section 5.4 of the
Plan is hereby deleted in its entirety and the following language is hereby
substituted therefor: 

	
   
	
  “If the total Annual Additions on behalf of a
  Participant for a Limitation Year would exceed the limitations described
  herein as a result of a reasonable error in determining the amount of Pre-Tax
  Contributions that a Participant may make to comply with this Section 5.4, as
  a result of the allocation of forfeitures or as a result of a reasonable
  error in estimating a Participant’s Compensation for purposes of this
  Section, such excess Pre-Tax Contributions shall be recharacterized as a
  Pre-Tax Contribution under Section 4.1(a)(ii) to the extent permitted under
  Section 414(v) of the Code and Treasury regulations issued thereunder.  If there is an excess after the foregoing
  recharacterization, such excess Pre-Tax Contribution may be distributed to
  the Participant to the extent that such distribution would reduce the excess
  Annual Additions as permitted under Section 415 of the Code.”

             IN
WITNESS WHEREOF, and as evidence of the adoption of the amendment set forth
herein, the Company has caused this instrument to be executed this 16th day
of January, 2004.

	
  Attest:
	
  THE PEP BOYS - MANNY, MOE & JACK

	
   
	
   

	
   
	
   

	
  /s/Brian d. Zuckerman
	
  /s/ Lawrence N. Stevenson

	
   
	
  Chief Executive Officer

4EXHIBIT
10.26 - THE PEP BOYS DEFERRED COMPENSATION PLAN

THE
PEP BOYS

DEFERRED COMPENSATION PLAN

Effective
March 19, 2004

ARTICLE
1

PURPOSE

          In
recognition of the services provided by certain key employees, the Board of
Directors of THE PEP BOYS – MANNY, MOE & JACK wishes to adopt a deferred
compensation plan (the “Plan”) to make additional retirement benefits and
increased financial security, on a tax-favored basis, available to those
individuals effective March 19, 2004. 
The Plan reads as follows:

ARTICLE
2

DEFINITIONS

          2.1          Definitions.  The following words and phrases, when used
in this Plan, shall have the following meanings:

                         Affiliate
means any firm, partnership, or corporation that directly or indirectly through
one or more intermediaries, controls, is controlled by, or is under common
control with the Company.  “Affiliate”
also includes any other organization related to the Company that is designated
as such by the Board.

                         Associate
means any individual employed by the Company on a regular, full-time basis at
the manager level or above (determined in accordance with the personnel
policies and practices of the Company) as designated by the Company, including
citizens of the United States employed outside of their home country and
resident aliens employed in the United States; provided, however, that to
qualify as an “Associate” for purposes of the Plan, the individual must be a
member of a group of “key management or other highly compensated employees”
within the meaning of Sections 201, 301 and 401 of ERISA whose Compensation is
within the top 5% of all Associates of the Company ranked by Compensation.

                         Base
Salary means the amount of base salary paid to each Associate before any
reduction for amounts deferred by the Participant pursuant to any Code section
401(k) plan or Code section 125 plan, or pursuant to this Plan or any other
non-qualified plan that permits deferrals of compensation.

                         Base
Salary Deferral means that portion of Base Salary as to which a Participant
has made an annual irrevocable election to defer receipt until the date
specified under the In-Service Distribution Option or the Retirement
Distribution Option.

                         Beneficiary
means the person or persons (natural or otherwise) designated by the
Participant in accordance with Section 11.3.

                         Board
means the Board of Directors of the Company.

                         Bonus
means the amount earned by an Associate under any annual incentive plan
maintained by the Company.

2

                         Cause
means (i) the continued failure of the Associate to perform substantially his
duties with the Company (other than such failure resulting from an Associate’s
Disability), (ii) any act by the Associate of illegality, dishonesty or fraud
in connection with the Associate’s employment, (iii) the willful engaging by
the Associate in gross misconduct which is demonstrably and materially
injurious to the Company or its affiliates, (iv) the Associate’s conviction of
or pleading guilty or no contest to a felony, or (v) a violation of the
Associate’s employment agreement or non-competition agreement with the Company.

                         Change
of Control means:

                         (a)          individuals
who, on the Effective Date, constitute the Board of Directors (the “Incumbent
Directors”) cease for any reason to constitute at least a majority of the Board
of Directors, provided that any person becoming a director subsequent to the
date hereof, whose election or nomination for election was approved by a vote
of at least two-thirds of the Incumbent Directors then on the Board of
Directors (either by a specific vote or by approval of the proxy statement of
the Company in which such person is named as a nominee for director, without
written objection to such nomination) shall be an Incumbent Director; provided,
however, that no individual initially elected or nominated as a director
of the Company as a result of an actual or threatened election contest with
respect to directors or as a result of any other actual or threatened
solicitation of proxies or consents by or on behalf of any person other than
the Board of Directors shall be deemed to be an Incumbent Director;

                         (b)          any
“Person” (as such term is defined in Section 3(a)(9) of the Securities Exchange
Act of 1934 (the “Exchange Act”) and as used in Sections 13(d)(3) and 14(d)(2)
of the Exchange Act) is or becomes a “beneficial owner” (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing 20% or more of the combined voting power of the Company’s
then outstanding securities eligible to vote for the election of the Board of
Directors (the “Voting Securities”); provided, however, that the
event described in this paragraph (b) shall not be deemed to be a Change of
Control by virtue of any of the following acquisitions:  (i) by the Company or any subsidiary of the
Company in which the Company owns more than 50% of the combined voting power of
such entity (a “Subsidiary”), (ii) by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any Subsidiary, (iii) by any underwriter
temporarily holding the Company’s Voting Securities pursuant to an offering of
such Voting Securities, or (iv) pursuant to a Non-Qualifying Transaction (as
defined in paragraph (c));

                         (c)          a
merger, consolidation, statutory share exchange or similar form of corporate
transaction is consummated involving the Company or any of its Subsidiaries
that requires the approval of the Company’s stockholders, whether for such
transaction or the issuance of securities in the transaction (a “Business
Combination”), unless immediately following such Business Combination:  (i) more than 50% of the total voting power
of (A) the corporation resulting from such Business Combination (the “Surviving
Corporation”), or (B) if applicable, the ultimate parent corporation that
directly or indirectly has beneficial ownership of 100% of the voting
securities eligible to elect directors of the Surviving Corporation (the
“Parent Corporation”), is represented by the Company’s Voting Securities that
were outstanding immediately prior to such Business Combination (or, if
applicable, is represented by shares into which the Company’s Voting Securities
were converted pursuant to such Business Combination), and such voting power
among the holders thereof is in substantially the same proportion as the 

3

voting power of the
Company’s Voting Securities among the holders thereof immediately prior to the
Business Combination, (ii) no person (other than any employee benefit plan (or
related trust) sponsored or maintained by the Surviving Corporation or the
Parent Corporation), is or becomes the beneficial owner, directly or
indirectly, of 20% or more of the total voting power of the outstanding voting
securities eligible to elect directors of the Parent Corporation (or, if there
is no Parent Corporation, the Surviving Corporation) and (iii) at least a
majority of the members of the board of directors of the Parent Corporation
(or, if there is no Parent Corporation, the Surviving Corporation) following
the consummation of the Business Combination were Incumbent Directors at the
time of the Board of Directors’ approval of the execution of the initial
agreement providing for such Business Combination (any Business Combination
which satisfies all of the criteria specified in (i), (ii) and (iii) above
shall be deemed to be a “Non-Qualifying Transaction”);

                         (d)          a
sale of all or substantially all of the Company’s assets is consummated;

                         (e)          the
stockholders of the Company approve a plan of complete liquidation or
dissolution of the Company; or

                         (f)          there
occur such other events as the Board of Directors may designate.

               Notwithstanding
the foregoing, a Change of Control of the Company shall not be deemed to occur
solely because any person acquires beneficial ownership of more than 20% of the
Company’s Voting Securities as a result of the acquisition of the Company’s
Voting Securities by the Company which reduces the number of the Company’s
Voting Securities outstanding; provided, that if after such
acquisition by the Company such person becomes the beneficial owner of
additional Company Voting Securities that increases the percentage of
outstanding Company Voting Securities beneficially owned by such person, a
Change of Control of the Company shall then occur.

                         Code
means the Internal Revenue Code of 1986, as amended from time to time and
includes any regulations issued thereunder.

                         Company
means The Pep Boys – Manny, Moe & Jack. 

                         Company
Stock Fund means the Deemed Investment Option under the Plan for which the
rate of return credited to a Participant’s Distribution Accounts shall be based
on the actual performance of the common stock of the Company.

                         Compensation
means the sum of Base Salary and Bonus paid to an Associate.

                         Deemed
Investment Options means the deemed investment options selected by the
Participant from time to time pursuant to which deemed earnings are credited to
the Participant’s Distribution Accounts.

                         Disability
or “Disabled” means a medically determinable physical or mental impairment of a
permanent nature which prevents a Participant from performing his customary
employment duties without endangering his health and which would qualify the
Participant for 

4

Social Security
disability benefits or a benefit under the Pep Boys – Manny, Moe & Jack
Long Term Disability Salary Continuation Plan.

                         Distribution
Option means the two distribution options which are available under the
Plan, consisting of the Retirement Distribution Option and the In-Service
Distribution Option.

                         Distribution
Account or “Accounts” means, with respect to a Participant, the Retirement
Distribution Account and/or the In-Service Distribution Account established on
the books of the Employer, pursuant to Section 5.1, which is used solely to
calculate the amount payable to each Participant as well as the “Accounts” to
which are credited the Mandatory Bonus Deferrals and the Matching Contributions
under Sections 4.2 and 4.4(a), respectively.

                         Distribution
Option Period.  “Distribution Option
Period”  means a period of Plan Years
for which an Eligible Associate elects, in the Enrollment Agreement, the time
and manner of payment of amounts credited to the Eligible Associate’s
In-Service Distribution Option Account for such Plan Years.  As required by Section 6.3, the Distribution
Option Period must end at least two Plan Years prior to the Plan Year selected
for the initial distribution for that Distribution Option Period.

                         Effective
Date means the effective date of the Plan, which is March 19, 2004.

                         Eligible
Associate means any Associate who is designated by the Board as eligible to
participate in the Plan.

                         Employer
means the Company and any Affiliate which is authorized by the Company to adopt
the Plan and cover its Eligible Associates and whose designation as such has
become effective upon acceptance of such status by the Affiliate.  An Affiliate may revoke its acceptance of
such designation at any time, but until such acceptance has been revoked, all
the provisions of the Plan and amendments thereto shall apply to the Eligible
Associates of the Affiliate.  In the
event the designation is revoked by an Affiliate, the Plan shall be deemed
terminated only with respect to such Affiliate.

                         Enrollment
Agreement means the authorization form which an Eligible Associate files
with the Plan Administrator to participate in the Plan.

                         ERISA
means the Employee Retirement Income Security Act of 1974, as amended.

                         In-Service
Distribution Account means the Account maintained for a Participant for
each Distribution Option Period to which Base Salary Deferrals and Voluntary
Bonus Deferrals are credited pursuant to the In-Service Distribution Option.

                         In-Service
Distribution Option means the Distribution Option pursuant to which
benefits are payable in accordance with Section 6.3.

5

                         Mandatory
Bonus Deferral means the portion of the Tier I Participant’s Bonus which is
in excess of 150% of the Tier I Participant’s target bonus.  

                         Matching
Contributions are those credits made to the Participant’s Retirement
Distribution Account by the Employer pursuant to Section 4.4.

                         Normal
Retirement Age means age 62.

                         Participant
means an Eligible Associate who has filed a completed and executed Enrollment
Agreement with the Plan Administrator or its designee and is participating in
the Plan in accordance with the provisions of Article 4 or an Eligible
Associate who is employed as an officer of the Company and is eligible to
receive a Bonus in any Plan Year in excess of 150% of the Eligible Associate’s
target bonus.  In the event of the death
or incompetency of a Participant, the term shall mean the Participant’s
personal representative or guardian.  An
individual shall remain a Participant until that individual has received full
distribution of any amount credited to the Participant’s Distribution
Account(s).

                         Plan
means this plan, called The Pep Boys Deferred Compensation Plan, as amended
from time to time.

                         Plan
Administrator means the committee appointed by the Board to act as the
administrator of the Plan.

                         Plan
Year means the 12 month period beginning on each January 1 and ending on
the following December 31.

                         Retirement
means the termination of the Participant’s Service with the Employer (for
reasons other than death) at or after age 55.

                         Retirement
Distribution Account means the Account maintained for a Participant to
which Base Salary Deferrals, Voluntary Bonus Deferrals and Matching
Contributions are credited pursuant to the Retirement Distribution Option.

                         Retirement
Distribution Option means the Distribution Option pursuant to which
benefits are payable in accordance with Section 6.1.

                         Service
means the period of time during which an employment relationship exists between
an Associate and the Employer, including any period during which the Associate
is on an approved leave of absence, whether paid or unpaid.  “Service” also includes employment with a
non-participating Affiliate if an Associate transfers directly between the
Employer and the Affiliate.

                         Tier
I Participant means a Participant who is employed as an officer of the
Company.

                         Tier
II Participant means a Participant other than a Tier I Participant.

6

                         Termination
Date means the date of termination of a Participant’s Service with the
Employer and its Affiliates, including termination resulting from a
Participant’s Disability, and shall be determined without reference to any
compensation continuation arrangement or severance benefit arrangement that may
be applicable.

                         Voluntary
Bonus Deferral means the portion of the Participant’s Bonus earned in a
Plan Year, which in the case of a Tier I Participant, is equal to or less than
150% of the Tier I Participant’s target bonus, as to which a Participant has
made an annual irrevocable election to defer receipt until the date specified
under the In-Service Distribution Option or the Retirement Distribution Option.

          2.2          Construction.
The masculine gender, where appearing in the Plan, shall be deemed to include
the feminine gender, unless the context clearly indicates to the contrary.

ARTICLE
3

ADMINISTRATION OF THE PLAN AND DISCRETION

          3.1          The
Plan Administrator shall have full power and authority to interpret the Plan,
to prescribe, amend and rescind any rules, forms and procedures as it deems
necessary or appropriate for the proper administration of the Plan and to make
any other determinations and to take any other such actions as it deems
necessary or advisable in carrying out its duties under the Plan.  All action taken by the Plan Administrator arising
out of, or in connection with, the administration of the Plan or any rules
adopted thereunder, shall, in each case, lie within its sole discretion, and
shall be final, conclusive and binding upon the Employer, the Board, all
Employees, all Beneficiaries of Employees and all persons and entities having
an interest therein and the Enrollment Agreement of each Participant shall
constitute that Participant’s acknowledgement and acceptance of the Plan
Administrator’s authority and discretion.

          3.2          The
Plan Administrator shall serve without compensation for their services unless
otherwise determined by the Board.  All
expenses of administering the Plan shall be paid by the Company.

          3.3          The
Company shall indemnify, defend and hold the Plan Administrator harmless from
any and all claims, losses, damages, expenses (including counsel fees) and
liability (including any amounts paid in settlement of any claim or any other
matter with the consent of the Board) arising from any act or omission of such
member, except when the same is due to gross negligence or willful misconduct.

          3.4          Any
decisions, actions or interpretations to be made under the Plan by the Company,
the Employer, the Board or Plan Administrator shall be made in its respective
sole discretion, not as a fiduciary and need not be uniformly applied to
similarly situated individuals and shall be final, binding and conclusive on
all persons interested in the Plan. 

ARTICLE
4

PARTICIPATION

          4.1          Election
to Participate.  Annually, all
Eligible Associates will be offered the opportunity to make a Base Salary
Deferral and a Voluntary Bonus Deferral with respect to Base 

7

Salary and Bonus to be
earned in the following Plan Year.  Any
Eligible Associate may enroll in the Plan effective as of the first day of a
Plan Year by filing a completed and fully executed Enrollment Agreement with
the Plan Administrator by a date set by the Plan Administrator but in any event
prior to the last day of the preceding Plan Year.  Pursuant to said Enrollment Agreement, the Eligible Associate
shall irrevocably elect, except as provided below, (a) the percentages, in
whole percentages, by which (as a result of payroll reduction) an amount equal
to any whole percentage of the Participant’s Base Salary or Bonus to be earned
during that Plan Year, in each case after required nondeferrable payroll tax
and other authorized or required deductions, will be deferred, (b) the
Distribution Accounts to which such amounts will be credited and (c) the time
and manner of distribution from the Retirement Distribution Account and shall
provide such other information as the Plan Administrator shall require.  The first Enrollment Agreement filed by an
Eligible Associate during any Distribution Option Period must also set forth
the Participant’s election as to the time and manner of distribution of amounts
credited to the Participant’s In-Service Distribution Account, and earnings
credited to such amounts, during such Distribution Option Period.   The Company may establish minimum or
maximum amounts of Base Salary Deferrals and Voluntary Bonus Deferrals that may
be elected under this Section and may change such standards from time to time.  Any such limits shall be communicated by the
Company to the Plan Administrator and by the Plan Administrator to the
Participants prior to the commencement of a Plan Year.  Notwithstanding anything herein to the
contrary, a Participant may elect to cease the Base Salary Deferrals or
Voluntary Bonus Deferrals, being made in the current Plan Year on the
Participant’s behalf by giving the Plan Administrator at least 30 days’ advance
written notice of such election and agreeing not to make any further Base
Salary Deferrals and Voluntary Bonus Deferrals under the Plan for the balance
of the current Plan Year and all of the next Plan Year.

          4.2          Mandatory
Participation.  Each Tier I
Participant who is eligible to receive a Bonus in any Plan Year in excess of
150% of the Tier I Participant’s target bonus will automatically be enrolled in
the Plan with such sum credited to an Account for the Tier I Participant. The
Deemed Investment Option for a Mandatory Bonus Deferral shall be a money market
fund selected by the Company.  The
Mandatory Bonus Deferral shall vest according to the following schedule
provided that the Participant does not have a Termination Date prior thereto:

	
   
	
  Plan Years following Year Earned
	
   
	
  Vested
  Percentage

	
   
	
  

  	
   
	
  

  
	
   
	
  One year, but less than two
	
   
	
  33.33%
	
   

	
   
	
  Two years, but less then three
	
   
	
  66.66%
	
   

	
   
	
  Three or more years
	
   
	
  100%
	
   

Notwithstanding the
foregoing, if the Tier I Participant dies or becomes Disabled while employed by
the Employer, or terminates employment on or after attaining Normal Retirement
Age, the Mandatory Bonus Deferral shall vest immediately on the Termination
Date.

          4.3          New
Eligible Associates.  The Plan
Administrator, acting on behalf of the Employer, may, in its discretion, permit
employees who first become Eligible Associates after the beginning of a Plan
Year to enroll in the Plan for that Plan Year by filing a completed and fully
executed Enrollment Agreement, in accordance with Section 4.1, as soon as
practicable following the date the Associate becomes an Eligible Associate but,
in any event, within 30 days 

8

after such date.  Notwithstanding the foregoing, however, any
election by an Eligible Associate, pursuant to this section, to make a Base
Salary Deferral or Voluntary Bonus Deferral shall apply only to such amounts as
are earned by the Eligible Associate after the date on which such Enrollment
Agreement is filed.

          4.4          Matching
Contributions.  

          (a)           If
a Tier I Participant elects to direct a portion of his Voluntary Bonus Deferral
to the Company Stock Fund, the Employer shall credit to such Tier I
Participant’s Account a Matching Contribution equal to 100% of the Voluntary
Bonus Deferral which the Tier I Participant elected to direct to the Company
Stock Fund, up to 20% of the Tier I Participant’s Bonus.  The Deemed Investment Option for the
Matching Contribution shall be the Company Stock Fund until such time as the
Matching Contribution is vested and distributed.  After such Matching Contribution is fully vested it shall be paid
as soon as practicable in shares of Company common stock unless the Participant
has elected, at the time and in the form specified by the Plan Administrator,
to credit the then value of such Matching Contribution to the Participant’s
In-Service or Retirement Account.  The
Matching Contribution under this Section 4.4(a) shall vest according to the
following schedule provided that the Participant does not have a Termination
Date prior thereto:

	
   
	
  Plan Years following Credit
	
   
	
  Vested
  Percentage

	
   
	
  

  	
   
	
  

  
	
   
	
  One year, but less than two
	
   
	
  33.33%
	
   

	
   
	
  Two years, but less then three
	
   
	
  66.66%
	
   

	
   
	
  Three or more years
	
   
	
  100%
	
   

If the Tier I Participant
dies or becomes Disabled while employed by the Employer, or terminates
employment on or after attaining Normal Retirement Age, the Matching Contribution
shall vest immediately on the Termination Date.

          (b)           The
Company may credit an additional Matching Contribution to a Tier I
Participant’s and/or a Tier II Participant’s Distribution Account for any Plan
Year, as determined by the Company.  Any
such Matching Contribution shall be communicated by the Company to the Plan
Administrator and by the Plan Administrator to the Participants.  The Company shall also specify at the time
of the credit whether such additional Matching Contribution shall be
distributed at the same time as the underlying Participant contributions or
earlier.

          (c)           Notwithstanding
the foregoing, if a Participant is terminated for Cause, the Plan
Administrator, acting on behalf of the Company, shall have the discretion to
forfeit the vested portion of the Matching Contribution credited to such
Participant’s Retirement Distribution Account. 

          (d)           Matching
Contributions will be credited as frequently as determined by the Plan
Administrator, acting on behalf of the Employer, but in any event at least
annually.

9

ARTICLE
5

DISTRIBUTION ACCOUNTS

          5.1          Distribution
Accounts.  The Plan Administrator
shall establish and maintain separate Distribution Accounts with respect to each
Participant for each Distribution Option Period and for the Retirement
Account.  A Participant’s Distribution
Accounts shall consist of the Retirement Distribution Account and/or one or
more In-Service Distribution Accounts. 
The amount of Base Salary Deferrals, Voluntary Bonus Deferrals and
Mandatory Bonus Deferrals pursuant to Section 4.1 and Section 4.2 shall be
credited by the Employer to the Participant’s Distribution Option Accounts no
later than the first day of the month following the month in which such Base
Salary or Bonus would otherwise have been paid, in accordance with the
Distribution Option irrevocably elected by the Participant in the Enrollment
Agreement, or in the case of Mandatory Bonus Deferrals, to the Tier I
Participant’s Account and distributed in accordance with Section 7.2(c).  Any amount once taken into account as Base
Salary or Bonus for purposes of this Plan shall not be taken into account
thereafter. The Participant’s Distribution Accounts shall be reduced by the
amount of payments made by the Employer to the Participant or the Participant’s
Beneficiary pursuant to this Plan.

          5.2          Returns
on Distribution Option Accounts.  A
Participant’s Distribution Accounts shall be credited with returns in
accordance with the Deemed Investment Options elected by the Participant from
time to time.  Unless otherwise provided
under this Plan, Participants may allocate their Retirement Distribution
Account and/or each of their In-Service Distribution Accounts among the Deemed
Investment Options available under the Plan only in whole percentages of not
less than five percent.  The rate of
return, positive or negative, credited under each Deemed Investment Option is
based upon the actual investment performance of the investment fund(s)
designated by the Plan Administrator from time to time, and shall equal the
total return of such investment fund net of asset based charges, including,
without limitation, money management fees, fund expenses and mortality and
expense risk insurance contract charges. 
The Plan Administrator reserves the right, on a prospective basis, to
add or delete Deemed Investment Options.

          5.3          Deemed
Investment Options.  Except as
otherwise provided pursuant to Section 5.2, the Deemed Investment Options
available under the Plan shall consist of the Company Stock Fund and such other
investments funds as the Plan Administrator designates.  Notwithstanding that the rates of return
credited to Participants’ Distribution Accounts under the Deemed Investment
Options are based upon the actual performance of the investment funds
designated by the Plan Administrator, the Company shall not be obligated to
invest any Base Salary Deferral by Participants under this Plan, or any other
amounts, in such portfolios or in any other investment funds.  Investments in the Company Stock Fund are
limited to elections under Section 4.4 only.

          5.4          Changes
in Deemed Investment Options.  A
Participant may change the Deemed Investment Options to which the Participant’s
Distribution Accounts are deemed to be allocated with whatever frequency is
determined by the Plan Administrator which shall not be less than four times
per Plan Year; provided, however, a Tier I Participant who has elected to
invest a portion of his Voluntary Bonus Deferral in the Company Stock Fund may
not change such investment option (for such Voluntary Bonus Deferrals or for
the related Matching Contributions). 
Each such change may include (a) reallocation of the Participant’s
existing Accounts in whole percentages of not less than five percent, and/or
(b) change in investment 

10

allocation of amounts to
be credited to the Participant’s Accounts in the future, as the Participant may
elect.  

          5.5          Valuation
of Accounts.  The value of a
Participant’s Distribution Accounts as of any date shall equal the amounts
theretofore credited to such Accounts, including any earnings (positive or
negative) deemed to be earned on such Accounts in accordance with Section 5.2
through the day preceding such date, less the amounts theretofore deducted from
such Accounts.

          5.6          Statement
of Accounts.  The Plan Administrator
shall provide to each Participant, not less frequently than quarterly, a
statement in such form as the Plan Administrator deems desirable setting forth
the balance standing to the credit of each Participant in each of his
Distribution Accounts.

          5.7          Distributions
from Accounts.  Any distribution
made to or on behalf of a Participant from one or more of his Distribution
Accounts in an amount which is less than the entire balance of any such Account
shall be made pro rata from each of the Deemed Investment Options to which such
Account is then allocated.

ARTICLE
6

DISTRIBUTION OPTIONS

          6.1          Election
of Distribution Option.  In the
Enrollment Agreement filed with the Plan Administrator for each Distribution
Option Period and for the Retirement Account, the Participant shall allocate
his or her deferrals between the Distribution Options in increments of ten
percent and elect the time and manner of distributions from such Distribution
Accounts.  A Participant’s execution of
the Enrollment Agreement shall also constitute acknowledgment that all
decisions, interpretations and determinations by the Plan Administrator shall
be final and binding on the Company, the Employer, Participants, Beneficiaries
and any other persons having or claiming an interest hereunder. 

          6.2          Retirement
Distribution Option.  Subject
to Section 7.1, distribution of the Participant’s Retirement Distribution
Account, if any, shall be made or commence on the first day of the 13th month
immediately following the Participant’s Retirement.

          6.3          In-Service
Distribution Option.  Subject to
Section 7.2, the Participant’s In-Service Distribution Account for any
Distribution Option Period shall be distributed commencing in, and no later
than, January of the Plan Year elected by the Participant in the Enrollment
Agreement pursuant to which such In-Service Distribution Account was
established.  Notwithstanding the
foregoing, a Participant shall not be entitled to allocate any Compensation
deferrals to an In-Service Distribution Account for a Distribution Option
Period for the two Plan Years preceding the Plan Year which includes the date
on which such Account is to be distributed and any such deferrals shall instead
be allocated to the Retirement Distribution Account or to a subsequent
In-Service Distribution Account if selected. 

11

ARTICLE
7

BENEFITS TO PARTICIPANTS

          7.1          Benefits
Under the Retirement Distribution Option. 
Benefits under the Retirement Distribution Option shall be paid to a
Participant as follows:

                         (a)          Distribution
of Benefits Upon Retirement.  In the
case of a Participant whose Service with the Employer terminates on account of
Retirement and whose Retirement Distribution Account balance exceeds $25,000,
the Participant’s Retirement Distribution Account shall be distributed in one
of the following methods, as elected by the Participant in writing either in
the Enrollment Agreement or in a separate election made prior to the date of
the Participant’s Retirement: (i) in a lump sum; (ii) in annual installments
over a 5, 10, 15 or 20 year period or (iii) by any other formula that is
mathematically derived and is acceptable to the Plan Administrator.  The first annual installment payments are
equal to (i) the value of such Retirement Distribution Account as of the last
business day of the Plan Year preceding the date of payment, divided by (ii)
the number of annual installment payments elected by the Participant in the
Enrollment Agreement pursuant to which such Retirement Distribution Account was
established.  The remaining annual
installments shall be paid not later than January 31 of each succeeding Plan
Year in an amount equal to (i) the value of such Retirement Distribution
Account as of the last business day of the immediately preceding Plan Year
divided by (ii) the number of installments remaining.  A Participant may change the election regarding the manner of
payment of the Participant’s Account, as described in Section 6.1, at any time
prior to the Participant’s Retirement.

                         (b)          Distribution
of Benefits Upon Termination of Employment.  In the case of a Participant whose Service with the Employer
terminates prior to the earliest date on which the Participant is eligible for
Retirement, or whose Retirement Distribution Account balance does not exceed
$25,000, the Participant’s Retirement Distribution Account shall be distributed
in a lump sum payment as soon as administratively practicable following the
Participant’s Termination Date notwithstanding any other election by the
Participant.

          7.2          Benefits
Under the In-Service Distribution Option. 
Benefits under the In-Service Distribution Option shall be paid to a
Participant as follows:

                         (a)          In-Service
Distributions.  Benefits under the
In-Service Distribution Account shall be distributed to the Participant for any
Distribution Option Period beginning on the date chosen by the Participant in
the first Enrollment Agreement that designated all or a portion of the Base
Salary or Bonus deferred to be allocated to the In-Service Distribution
Account.  In no event shall the date
selected be earlier than the first day of the third Plan Year following the
Plan Year in which the initial filing of the Enrollment Agreement was made with
respect to that In-Service Distribution Account.  The Participant may, subsequently amend the intended date of
payment to a date later than that date initially chosen, by filing such
amendment with the Plan Administrator no later than 12 months prior to the date
of the first payment originally chosen. 
The Participant may file this amendment to defer the receipt of benefits
under this Section only twice, and each amendment must provide for a payout
under this Section at a date later than the election in force immediately prior
to a filing of such amendment.  The
Participant’s In-Service Distribution Account shall be paid to the Participant
in either: (i) a lump sum payment commencing no later than January 31 of the
Plan Year elected by the Participant in 

12

the Enrollment Agreement
pursuant to which such In-Service Distribution Account was established as it
may have been amended in accordance with the preceding paragraph; or (ii)
annual installments payable over a 2, 3, 4 or 5 year period.  Annual installment payments, if any, equal
to (i) the value of such In-Service Distribution Account as of the last
business day of the Plan Year preceding the date of payment, divided by (ii)
the number of annual installment payments elected by the Participant in the
Enrollment Agreement pursuant to which such In-Service Distribution Account was
established.  The remaining annual
installments shall be paid not later than January 31 of each succeeding year in
an amount equal to (i) the value of such In-Service Distribution Account as of
the last business day of the immediately preceding Plan Year divided by (ii)
the number of installments remaining.

                         (b)          Benefits
Upon Termination of Employment.  In
the case of a Participant whose Service with the Employer terminates prior to
the date on which the Participant’s In-Service Distribution Account would
otherwise be distributed, such In-Service Distribution Account shall be paid in
a lump sum as soon as administratively practicable following the Participant’s
Termination Date.

                         (c)          Distribution
of Mandatory Bonus Deferral. 
Notwithstanding the foregoing, the vested portion of the Mandatory Bonus
Deferral credited to a Tier I Participant’s Account, and related earnings,
shall be distributed to the Tier I Participant in April of each of the three
Plan Years following the Plan Year in which the Mandatory Bonus Deferral was
credited to the Tier I Participant’s Account. 
If the Tier I Participant terminates employment on or after attaining
Normal Retirement Age, dies or becomes Disabled prior to the end of this three
year period, the entire balance shall be distributed to the Tier I Participant
or his Beneficiary in a lump sum payment as soon as administratively possible
following the Termination Date. 

          7.3          Distribution
of Benefits Upon a Change of Control. 
In the event of a Change of Control, within 30 days thereafter, a
Participant may elect to receive the vested portion of the Participant’s
Accounts.  If a Participant elects to be
paid a benefit under this Section 7.3, the lump sum payment due to the
Participant (or Beneficiary, in the event of the Participant’s death) under
this Section shall be made on the first day of the 13th month immediately
following the end of the election period.

ARTICLE
8

SURVIVOR BENEFITS

          8.1          Death
of Participant Prior to the Commencement of Benefits.  In the event of a Participant’s death prior
to the commencement of benefits in accordance with Article 7, distribution of
the Participant’s Accounts shall be made to the Participant’s Beneficiary in a
lump sum as soon as practicable on the first day of the seventh month following
the Participant’s death.  The amount of
any lump sum benefit payable in accordance with this Section shall equal the
value of the Participant’s Accounts as of the last business day of the
calendar month immediately preceding the date on which such benefit is
paid.  In lieu of the lump sum, a
Beneficiary may elect, in the form and manner, and at the time specified by,
the Plan Administrator, any form of payment allowed under Section 7.1 or 7.2,
as applicable, that the Participant would have been able to elect had the
Participant retired on the day before death.

13

          8.2          Death
of Participant After Benefits Have Commenced.  In the event a Participant dies after annual installment benefits
payable under Section 7.1 or 7.2 have commenced, but before the entire balance
of the applicable Distribution Account has been paid, any remaining installments
shall continue to be paid to the Participant’s Beneficiary at such times and in
such amounts as they would have been paid to the Participant had the
Participant survived.

ARTICLE
9

EMERGENCY BENEFIT

          In
the event that the Plan Administrator, upon written request of a Participant,
determines, in its sole discretion, that the Participant has suffered an
unforeseeable financial emergency, the Employer shall pay to the Participant
from the Participant’s Distribution Account(s), as soon as practicable
following such determination, an amount necessary to meet the emergency, after deduction
of any and all taxes as may be required pursuant to Section 11.9 (the
“Emergency Benefit”).  For purposes of
this Plan, an unforeseeable financial emergency is an unexpected need for cash
arising from an illness, casualty loss, sudden financial reversal, or other
such unforeseeable occurrence.  Cash
needs arising from foreseeable events such as the purchase of a house or education
expenses for children shall not be considered to be the result of an
unforeseeable financial emergency. 
Emergency Benefits shall be paid first from the Participant’s In-Service
Distribution Accounts, if any, to the extent the balance of one or more of such
In-Service Distribution Accounts is sufficient to meet the emergency, in the
order in which such Accounts would otherwise be distributed to the
Participant.  If the distribution
exhausts the In-Service Distribution Accounts, the Retirement Distribution
Account may be accessed.  With respect
to that portion of any Distribution Option Account which is distributed to a
Participant as an Emergency Benefit, in accordance with this Article, no
further benefit shall be payable to the Participant under this Plan.  Notwithstanding anything in this Plan to the
contrary, a Participant who receives an Emergency Benefit in any Plan Year
shall not be entitled to make any further deferrals for the remainder of such
Plan Year.  It is intended that the Plan
Administrator’s determination as to whether a Participant has suffered an
“unforeseeable financial emergency” shall be made consistent with the
requirements under section 457(d) of the Code.

ARTICLE
10

ACCELERATED DISTRIBUTION

          10.1        Availability
of Withdrawal Prior to Retirement. 
Upon the Participant’s written election, the Participant may elect to
withdraw all or a portion (minimum of 25%) of the Participant’s Distribution
Account(s) at any time prior to the time such Distribution Account otherwise
becomes payable under the Plan, provided the conditions specified in Section
10.3, Section 10.4, and Section 10.5 are satisfied.

          10.2        Acceleration
of Periodic Distributions.  Upon the
Participant’s written election, the Participant or Participant’s Beneficiary
who is receiving installment payments under the Plan may elect to have all or a
percentage of the remaining installments distributed in the form of an
immediately payable lump sum, provided the condition specified in Section 10.3
is satisfied.

14

          10.3        Forfeiture
Penalty.  In the event of a
withdrawal pursuant to Section 10.1, or an accelerated distribution pursuant to
Section 10.2, the Participant shall forfeit from his Distribution Account from
which the withdrawal is made an amount equal to 10% of the amount of the
withdrawal or accelerated distribution, as the case may be.  The forfeited amount shall be deducted from
the applicable Distribution Account prior to giving effect to the requested
withdrawal or acceleration.  The
Participant and the Participant’s Beneficiary shall not have any right or claim
to the forfeited amount, and the Employer shall have no obligation whatsoever
to the Participant, the Participant’s Beneficiary or any other person with
regard to the forfeited amount.

          10.4        Minimum
Withdrawal.  In no event shall the
amount withdrawn in accordance with Section 10.1 be less than 25% of the amount
credited to the Participant’s Distribution Account immediately prior to the
withdrawal.

          10.5        Suspension
from Deferrals.  In the event of a
withdrawal pursuant to Section 10.1, a Participant who is otherwise eligible to
make deferrals under Article 4 shall be prohibited from making any deferrals
with respect to the Plan Year immediately following the Plan Year during which
the withdrawal was made, and any election previously made by the Participant
with respect to deferrals for the Plan Year of the withdrawal shall be void and
of no effect with respect to subsequent deferrals for such Plan Year.

ARTICLE
11

MISCELLANEOUS

          11.1        Amendment
and Termination.  The Plan may be
amended, suspended, discontinued or terminated at any time by the Plan
Administrator, acting on behalf of the Company; provided, however, that no such
amendment, suspension, discontinuance or termination shall reduce or in any
manner adversely affect the rights of any Participant with respect to benefits
that are payable or may become payable under the Plan based upon the balance of
the Participant’s Accounts as of the effective date of such amendment,
suspension, discontinuance or termination. 
Following a termination of the Plan, the Plan Administrator, acting on
behalf of the Company, shall determine when amounts shall be distributed from
each Participant’s Distribution Accounts notwithstanding any terms of the Plan
to the contrary.

          11.2        Claims
Procedure.  

                         a.          Claim

                         A
person who believes that he is being denied a benefit to which he is entitled
under the Plan (hereinafter referred to as a “Claimant”) may file a written
request for such benefit with the Plan Administrator, setting forth the claim.

                         b.          Claim
Decision

                         Upon
receipt of a claim, the Plan Administrator shall advise the Claimant that a
reply will be forthcoming within ninety (90) days and shall, in fact, deliver
such reply within 

15

such period.  The Plan Administrator may, however, extend
the reply period for an additional ninety (90) days for reasonable cause.

                         If
the claim is denied in whole or in part, the Claimant shall be provided a
written opinion, using language calculated to be understood by the Claimant,
setting forth:

                         (a)         The
specific reason or reasons for such denial;

                         (b)         The
specific reference to relevant provisions of the Plan on which such denial is
based;

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

                         (d)         Appropriate
information as to the steps to be taken if the Claimant wishes to submit the
claim for review; 

                         (e)         The
time limits for requesting a review under subsection (c) and for review under
subsection (d) hereof; and

                         (f)         The
Participant’s right to bring an action for benefits under Section 502 of ERISA.

                         c.          Request
for Review

                         Within
sixty (60) days after the receipt by the Claimant of the written opinion
described above, the Claimant may request in writing that the Plan
Administrator review its determination. 
The Claimant or his duly authorized representative may, but need not,
review the pertinent documents and submit issues and comment in writing for
consideration by the Plan Administrator. 
If the Claimant does not request a review of the initial determination
within such sixty (60) day period, the Claimant shall be barred and estopped
from challenging the determination.

                         d.          Review
of Decision

                         Within
sixty (60) days after the Plan Administrator’s receipt of a request for review,
it will review the initial determination. 
After considering all materials presented by the Claimant, the Plan
Administrator will render a written opinion, written in a manner calculated to
be understood by the Claimant, setting forth the specific reasons for the
decision and containing specific references to the relevant provisions of this
Agreement on which the decision is based and the Participant’s right to bring
an action for benefits under Section 502 of ERISA.  If special circumstances require that the sixty (60) day time
period be extended, the Plan Administrator will so notify the Claimant and will
render the decision as soon as possible, but no later than one hundred twenty
(120) days after receipt of the request for review.

          11.3        Designation
of Beneficiary.  Each Participant
may designate a Beneficiary or Beneficiaries (which Beneficiary may be an
entity other than a natural person) to receive any 

16

payments which may be
made following the Participant’s death. 
Such designation may be changed or canceled at any time without the
consent of any such Beneficiary.  Any
such designation, change or cancellation must be made in a form approved by the
Plan Administrator and shall not be effective until received by the Plan
Administrator, or its designee.  If no
Beneficiary has been named, or the designated Beneficiary or Beneficiaries
shall have predeceased the Participant, the Beneficiary shall be the
Participant’s estate.  If a Participant
designates more than one Beneficiary, the interests of such Beneficiaries shall
be paid in equal shares, unless the Participant has specifically designated
otherwise.

          11.4        Limitation
of Participant’s Right.  Nothing in
this Plan shall be construed as conferring upon any Participant any right to
continue in the employment of the Company, nor shall it interfere with the
rights of the Company to terminate the employment of any Participant and/or to
take any personnel action affecting any Participant without regard to the
effect which such action may have upon such Participant as a recipient or
prospective recipient of benefits under the Plan.  Any amounts payable hereunder shall not be deemed salary or other
compensation to a Participant for the purposes of computing benefits to which
the Participant may be entitled under any other arrangement established by the
Company for the benefit of its employees.

          11.5        No
Limitation on Company Actions. 
Nothing contained in the Plan shall be construed to prevent the Company
from taking any action which is deemed by it to be appropriate or in its best
interest.  No Participant, Beneficiary,
or other person shall have any claim against the Company as a result of such
action.

          11.6        Obligations
to Company.  If a Participant
becomes entitled to a distribution of benefits under the Plan, and if at such
time the Participant has outstanding any debt, obligation, or other liability
representing an amount owing to the Company, then the Company may offset such
amount owed to it against the amount of benefits otherwise distributable.  Such determination shall be made by the Plan
Administrator.

          11.7        Nonalienation
of Benefits.  Except as expressly
provided herein, no Participant or Beneficiary shall have the power or right to
transfer (otherwise than by will or the laws of descent and distribution),
alienate, or otherwise encumber the Participant’s interest under the Plan.  The Company’s obligations under this Plan
are not assignable or transferable except to (a) any corporation or partnership
which acquires all or substantially all of the Company’s assets or (b) any
corporation or partnership into which the Company may be merged or
consolidated.  The provisions of the Plan
shall inure to the benefit of each Participant and the Participant’s
Beneficiaries, heirs, executors, administrators or successors in interest.

          11.8        Protective
Provisions.  Each Participant shall
cooperate with the Company by furnishing any and all information requested by
the Company in order to facilitate the payment of benefits hereunder, taking
such physical examinations as the Company may deem necessary and taking such
other relevant action as may be requested by the Company.  If a Participant refuses to cooperate, the
Company shall have no further obligation to the Participant under the Plan,
other than payment to such Participant of the then current balance of the
Participant’s Distribution Option Accounts in accordance with his prior
elections.

17

          11.9        Withholding
Taxes.  The Company may make such
provisions and take such action as it may deem necessary or appropriate for the
withholding of any taxes which the Company is required by any law or regulation
of any governmental authority, whether Federal, state or local, to withhold in
connection with any benefits under the Plan, including, but not limited to, the
withholding of appropriate sums from any amount otherwise payable to the
Participant (or his Beneficiary).  Each
Participant, however, shall be responsible for the payment of all individual
tax liabilities relating to any such benefits.

          11.10      Unfunded
Status of Plan.  The Plan is
intended to constitute an “unfunded” plan of deferred compensation for
Participants.  Benefits payable
hereunder shall be payable out of the general assets of the Company, and no
segregation of any assets whatsoever for such benefits shall be made.  Notwithstanding any segregation of assets or
transfer to a grantor trust, with respect to any payments not yet made to a
Participant, nothing contained herein shall give any such Participant any
rights to assets that are greater than those of a general creditor of the
Company.

          11.11      Severability.  If any provision of this Plan is held
unenforceable, the remainder of the Plan shall continue in full force and
effect without regard to such unenforceable provision and shall be applied as
though the unenforceable provision were not contained in the Plan.

          11.12      Governing
Law.  The Plan shall be construed in
accordance with and governed by the laws of the Commonwealth of Pennsylvania,
without reference to the principles of conflict of laws.

          11.13      Headings.  Headings are inserted in this Plan for
convenience of reference only and are to be ignored in the construction of the
provisions of the Plan. 

          11.14      Gender,
Singular and Plural.  All pronouns
and any variations thereof shall be deemed to refer to the masculine, feminine,
or neuter, as the identity of the person or persons may require.  As the context may require, the singular may
read as the plural and the plural as the singular.

          11.15      Notice.  Any notice or filing required or permitted
to be given to the Plan Administrator or the Plan Administrator under the Plan
shall be sufficient if in writing and hand delivered, or sent by registered or
certified mail, to the Human Resources Department, or to such other entity as
the Plan Administrator or the Plan Administrator may designate from time to
time.  Such notice shall be deemed given
as to the date of delivery, or, if delivery is made by mail, as of the date
shown on the postmark on the receipt for registration or certification.

18

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