Document:

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                                 EXHIBIT 10(c)

                             P.H. Glatfelter Company

                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                 (Amended and Restated Effective April 23, 1998)
                           (Amended December 20, 2000)
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                                TABLE OF CONTENTS
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                                                                                                     PAGE

<S>                     <C>                                                                          <C>
ARTICLE I               PURPOSE                                                                        1

ARTICLE II              DEFINITIONS                                                                    1

ARTICLE III             ELIGIBILITY FOR AND FORFEITURE OF PLAN
                        PARTICIPATION                                                                  4

ARTICLE IV              RESTORATION PENSION                                                            5

ARTICLE V               FINAL AVERAGE COMPENSATION PENSION                                             6

ARTICLE VI              FUNDING                                                                        6

ARTICLE VII             ADMINISTRATION                                                                 9

ARTICLE VIII            AMENDMENT AND TERMINATION                                                     11

ARTICLE IX              MISCELLANEOUS                                                                 13
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                             P.H. GLATFELTER COMPANY
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
                 (AMENDED AND RESTATED EFFECTIVE APRIL 23, 1998)
                           (AMENDED DECEMBER 20, 2000)

                                    ARTICLE I

                                     PURPOSE

            1.1 Purpose. The Plan was originally established, effective January
1, 1988, for the purpose of providing certain officers or senior management
employees of P.H. Glatfelter Company (the "Company") with benefits which would
otherwise be provided under the Company's qualified defined benefit retirement
plan (now known as the P.H. Glatfelter Company Retirement Plan for Salaried
Employees ("Retirement Plan")) but for reductions or restrictions to such
benefits required by Federal law. Effective as of April 23, 1998, the Plan is
amended and restated in its entirety.

            As restated the Plan consists of two benefits. The first benefit,
known as the "Restoration Pension", provides an additional pension benefit based
on the Participant's pension benefit earned under the terms of the Retirement
Plan, which is intended to restore that portion of the Retirement Plan's benefit
which cannot be paid from that plan due to legal limitations on the compensation
and total benefits payable thereunder.

            The second benefit, known as the "Final Average Compensation
Pension" or "FAC Pension", pays a monthly pension benefit equal to a designated
percentage of the participant's Final Average Compensation (as defined herein),
offset by the actuarially equivalent value of the Participant's benefits under
the Retirement Plan and certain Company-sponsored nonqualified defined benefit
pension arrangements, including (if applicable) the Restoration Pension.

            It is intended that this Plan will satisfy the requirements of an
unfunded "top hat" deferred compensation plan as described in sections 201(2),
301(a)(3) and 401(a)(1) of ERISA. Consequently, participation shall be limited
to individuals who, in the determination of the Committee, are management
employees or who are highly compensated employees for purposes of the foregoing
provisions of ERISA.
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                                   ARTICLE II

                                  DEFINITIONS

            2.1 "Accrued Benefit" means, as of any applicable date of reference,
the amount of the Participant's Restoration Pension or Final Average
Compensation Pension, as the case may be, which has been earned to such date
payable (in the case of the Restoration Pension) in the normal form of annuity
payment commencing as of his normal retirement date under the terms of the
Retirement Plan or (in the case of the FAC Pension) in the form of the Joint and
75% Surviving Spouse's Annuity commencing as of his Normal Retirement Date (or,
in each case, immediately if the Participant has passed his normal retirement
date and is still an Employee), and calculated in accordance with Article IV or
Article V, as the case may be. In determining a Participant's Accrued Benefit as
of a particular date, his compensation and/or service credit earned after such
date shall not be taken into account.

            2.2 "Benefit Commencement Date" means, for any Participant, the date
as of which his initial benefit payment is due. "Benefit Commencement Date" also
means, with respect to the Participant's Spouse, the date on which the
Survivor's Benefit under Section 5.5 commences to the Spouse.

            2.3 "Benefit Years" means, subject to Section 5.4, the Participant's
Benefit Years as that term is defined for purposes of the Retirement Plan;
provided, however, that if the Participant had become a covered employee under
the Retirement Plan by reason of transfer from hourly-paid service with the
Company or an affiliate on or after January 1, 1992, Benefit Years shall also be
credited with respect to his service as an hourly employee prior to such
transfer.

            2.4 "Board" means the Board of Directors of P.H. Glatfelter Company.

            2.5 "Change in Control" means the occurrence of any of the following
events, directly or indirectly or in one or more series of transactions: 1.1

            (a) The acquisition, directly or indirectly, other than from the
Company, by any person, entity or "group" (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), excluding, for this purpose, the Company, its subsidiaries, any
employee benefit plan of the Company or its subsidiaries, and any purchaser or
group of purchasers who are descendants of, or entities controlled by
descendants of, P.H. Glatfelter which acquires beneficial ownership of voting
securities of the Company) (a "Third Party") of beneficial ownership (within the

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meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of the
combined voting power of the Company's then outstanding voting securities
entitled to vote generally in the election of directors; or

            (b) Individuals who, as of the date hereof, constitute the Board
(the "Incumbent Directors") cease for any reason to constitute at least a
majority of the Board, provided that any person becoming a director subsequent
to the date hereof whose election, or nomination for election by the Company's
shareholders, was approved by a vote of at least a majority of the Incumbent
Directors who are directors at the time of such vote shall be, for purposes of
this Agreement, an Incumbent Director; or

            (c) Consummation of (i) a reorganization, merger or consolidation,
in each case, with respect to which persons who were the shareholders of the
Company immediately prior to such reorganization, merger or consolidation (other
than the acquiror) do not, immediately thereafter, beneficially own more than
50% of the combined voting power of the reorganized, merged or consolidated
company's then outstanding voting securities entitled to vote generally in the
election of directors, or (ii) a liquidation or dissolution of the Company or
the sale of all or substantially all of the assets of the Company (whether such
assets are held directly or indirectly) to a Third Party.

            In addition to the foregoing, a Change in Control with respect to an
individual Participant shall be deemed to occur if the Participant's employment
with the Company is terminated prior to the date on which a Change in Control
occurs, and it is reasonably demonstrated that such termination (i) was at the
request of a third party who has taken steps reasonably calculated to effect a
Change in Control or (ii) otherwise arose in connection with or anticipation of
a Change in Control. In such event, the provisions of Section 3.3 shall apply
with respect to the Participant's benefit, except that the Company's obligation
to fund the Trust shall not arise unless and until a Change in Control as
described in paragraphs (a), (b) or (c) has actually occurred.

            2.6 "Code" means the Internal Revenue Code of 1986, as amended.

            2.7 "Committee" means the Compensation Committee of the Company's
Board of Directors.

            2.8 "Company" means the P.H. Glatfelter Company.

            2.9 "Compensation" means, with respect to each calendar month
included as part of a Participant's Final Average Compensation, the sum of (a)
his base compensation for such month and (b) that portion

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of his annual incentive and profit sharing earnings which is attributable to the
Participant's performance of services during such month, as determined by the
Committee.

            2.10 "Confidential Information" means information which is not
generally known to the public, which is used, developed, or obtained by the
Company (or its affiliates) relating to its business and the businesses of its
clients or customers including, without limitation: products or services; fees,
costs and pricing structures; marketing information; advertising and pricing
strategies; analyses and reports; computer software including operating systems,
applications and program listings; flow charts; manuals and documentation;
databases; accounting and business methods; inventions and new developments and
methods, whether patentable or unpatentable and whether or not reduced to
practice; all copyrightable works; the Company's existing and prospective
clients and customers and their confidential information; existing and
prospective client and customer lists and other data related thereto; billing
and payment records; and all similar and related information in whatever form.

            2.11 "Disability" means a disabling illness or injury which causes
the Participant to be absent from work and during which the Participant receives
payments under the Company's long-term disability plan.

            2.12 "Early Retirement Date" means the first day of the month
coincident with or next following the Participant's attainment of age 55 and
retirement from employment with the Company and all affiliates; provided that
such date shall not be later than his Normal Retirement Date.

            2.13 "Employee" means an officer or senior management employee of
the Company.

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

            2.15 "Final Average Compensation" means, with respect to the Final
Average Compensation Pension for any Participant, the annualized average of the
Participant's Compensation for the sixty (60) calendar months immediately
preceding his retirement, as determined by the Committee. In determining a
Participant's Final Average Compensation, the Committee may estimate the
Participant's incentive and/or profit sharing earnings with respect to his final
year or partial year of employment. In such event, after the Participant's
actual Compensation is known, the amount of the Participant's monthly FAC
Pension shall be adjusted to reflect such actual Compensation at such time and
in such manner as the Committee deems appropriate.

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            2.16 "Final Average Compensation Pension" or "FAC Pension" means the
pension benefit described in Article V of this Plan.

            2.17 "Joint and 75% Surviving Spouse's Annuity" means, with respect
to the Final Average Compensation Pension, a joint and survivor annuity with the
Participant's Spouse, with monthly installments payable to the Participant for
his lifetime in the amount determined under Section 5.1, 5.2, 5.3 or 5.4, as
applicable, and with seventy-five percent (75%) of the amount of such monthly
installment payable after the death of the Participant to the Spouse of such
Participant, if then living, for the life of such surviving Spouse.

            2.18 "Normal Retirement Date" means the first day of the month
coincident with or next following the Participant's attainment of age 62,
provided that he has retired from employment with the Company and all
affiliates.

            2.19 "MIP" means the Company's Management Incentive Plan, as it may
be amended from time to time.

            2.20 "Participant" means an Employee selected by the Committee for
participation in the Plan.

            2.21 "Plan" means the P.H. Glatfelter Company Supplemental Executive
Retirement Plan.

            2.22 "Retirement Plan" means the P.H. Glatfelter Company Retirement
Plan for Salaried Employees, as it may be amended from time to time.

            2.23 "Restoration Pension" means the pension benefit described in
Article IV of this Plan.

            2.24 "Spouse" means the individual, if any, to whom the Participant
is legally married on the Participant's Benefit Commencement Date, or, with
respect to the Survivor's Benefit under Section 5.5, on the date of the
Participant's death.

            2.25 "Trust" means the trust under the Trust Agreement executed
January 12, 1990 between the Company and Provident National Bank as Trustee, or
any successor "rabbi" trust agreement conforming to the requirements described
at Section 6.1(b), as may be adopted by the Company to hold the assets used to
pay Plan benefits.

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                                  ARTICLE III

              ELIGIBILITY FOR AND FORFEITURE OF PLAN PARTICIPATION

            3.1 Designation of Participant. An Employee shall become a
Participant in this Plan if selected for participation by the Committee, in its
sole and absolute discretion. The Committee shall designate whether a
Participant is eligible for the Final Average Compensation Pension and/or the
Restoration Pension. Notwithstanding the foregoing, (a) unless specifically
designated by the Committee as eligible for the FAC Pension, a Participant shall
be eligible only for the Restoration Pension, and (b) no Employee shall be
designated as eligible for the FAC Pension who is also eligible for the
Company's Supplemental Management Pension Plan (part of the Plan of Supplemental
Retirement Benefits for the Management Committee).

            3.2 Cessation of Participation; Termination of Benefit Accruals. (a)
A Participant shall cease to be a Participant and shall forfeit the right to his
Accrued Benefit under the Plan if, prior to the time he attains age 55, he
voluntarily terminates employment with the Company and all affiliates other than
by reason of Disability or death.

            (b) The Committee shall have the right, in its sole and absolute
discretion, to terminate the accrual of benefits for a Participant at any time
prior to his Benefit Commencement Date; provided however, that such termination
of benefit accruals shall be prospective only and shall not affect the right of
such Participant, subject to the application of subsections 3.2(a), (c) and (d),
to receive a Restoration Pension or FAC Pension, as the case may be, based on
his Accrued Benefit determined as of the date benefit accruals are terminated.

            (c) If a Participant who is receiving, or may be entitled to
receive, a benefit hereunder should, without the prior consent of the Committee,
(1) become an employee, officer or a director of a competitor of the Company, or
(2) use or disclose Confidential Information (except as required in the
performance of the Participant's duties with the Company), then payments
thereafter payable hereunder to such Participant or such Participant's
beneficiary will be forfeited and neither the Company nor the Plan will have any
further obligation hereunder to such Participant or his beneficiary. The
Committee in its sole and absolute discretion shall determine if another entity
or person is a "competitor" for purposes of this subsection.

            (d) Except as provided in Section 3.3, the Committee shall

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have broad, sole and absolute discretion under Section 3.1 and subsections (b)
and (c) hereof, including but not limited to determining who will become a
Participant in the Plan, when participation in the Plan commences and ceases and
when benefits accruals commence or terminate.

            3.3 Change in Control. Notwithstanding anything to the contrary
contained in this Article III or any other portion of the Plan, when a Change in
Control occurs, the right to receive benefits under this Plan for each Employee
who is a Participant in the Plan on the date such change occurs shall become
fixed and nonforfeitable with respect to his Accrued Benefit on such date, and
shall not be subsequently divested. All discretion of the Committee regarding
the forfeiture or termination of a Participant's participation or benefits as
provided under Section 3.2 shall be eliminated upon such Change in Control, and
the Applicable Percentage of each Participant's Final Average Compensation
Pension (see Section 5.1(b)) shall be fixed at fifty-five percent (55%). Also,
within five (5) days following such Change in Control the Company shall fund the
Trust with sufficient assets to pay the Accrued Benefits of all Participants
under the Plan.
1.1

                                   ARTICLE IV

                               RESTORATION PENSION

            4.1 Amount of Restoration Pension. A Participant's Restoration
Pension shall be equal to:

            (a) (1) except as provided under paragraph (2), the benefit that
would have been payable to the Participant under the Retirement Plan calculated

                (A) on the basis of his compensation and final average
compensation (each as defined in the Retirement Plan but including for any
period that portion of the Participant's incentive award under the MIP which he
has elected to defer in accordance with paragraph 7 of the MIP (or any
successor)) determined without regard to the limit on annual compensation under
section 401(a)(17) of the Code, and

                (B) without regard to any applicable maximum benefit limitation
under section 415 of the Code;

            (2) with respect to any Participant who was a participant in the
Pension Plan of P.H. Glatfelter Company and The Glatfelter Pulp Wood Company
(the "Spring Grove Plan") which plan was merged into the Retirement Plan, whose
benefit under such plan is determined under the "Modified Grandfathered Accrued
Benefit" for 1970 Spring Grove participants, as defined in the Spring Grove
Plan, the benefit that

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would have been payable to the Participant under the Spring Grove Plan as in
effect as of December 31, 1988 calculated

                (A) on the basis of base earnings and final average excess
earnings (each as defined in the Retirement Plan but including, with respect to
the determination of the Participant's excess earnings for any period, that
portion of the Participant's incentive award under the MIP which he has elected
to defer in accordance with paragraph 7 of the MIP (or any successor))
determined without regard to the limit on annual compensation under section
401(a)(17) of the Code and

                (B) without regard to any applicable maximum benefit limitation
under section 415 of the Code; reduced by

            (b) the benefit payable to the Participant under the Retirement
Plan;

both determined as of the date the Restoration Pension will commence in
accordance with Section 4.2 and with respect to the form of payments elected by
Participant in accordance with Section 4.3 of the Plan, based on the actuarial
assumptions used to calculate actuarial equivalences or the reduction factors
for early commencement of benefits, as applicable, under the Retirement Plan.

            4.2 Payment of Restoration Pension. The Restoration Pension shall be
paid to a Participant in accordance with Section 4.3 within thirty (30) days
following the later of (a) his retirement or other separation from service with
the Company and all affiliates or (b) the termination of benefits under the
Supplemental Management Pension Plan; provided, however, that if the Participant
separates from service before age 65, such amount shall be paid in accordance
with 4.3 within thirty (30) days following such later specified time, but at or
before his attainment of age 65, as the Participant may have elected at the time
the Participant first became a Participant.

            4.3 Form of Payments. (a) At the time a Participant first becomes a
Participant he shall elect whether the Restoration Pension shall be paid in a
single sum (equal to its present value determined in accordance with subsection
4.3(c)) or in any other form of distribution permitted under the Retirement
Plan. The Company shall pay the Participant his Restoration Pension in the
manner he has elected; provided, however, that the Company in its sole
discretion may pay the Restoration Pension in a single sum distribution as soon
as practicable after the Participant's separation from service if the present
value of his Restoration Pension is not more than $20,000 at the time the
Participant separates from service; provided further, that a Participant who has
elected a form of payment that includes a survivor annuity, and who is not
married as of his Benefit

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Commencement Date or who ceases to be married within one year after such date,
will receive (or will thereafter receive, as the case may be) his Restoration
Pension in the form of a single life annuity.

            (b) If a Participant fails to elect a form of payment and the
present value of his Restoration Pension exceeds $20,000, his Restoration
Pension will be paid in the form of (1) a joint and 50% survivor annuity if he
is married on his Benefit Commencement Date or (2) a single life annuity if he
is unmarried on such date; provided, however, that a Participant receiving a
joint and 50% survivor annuity who ceases to be married within one year after
his Benefit Commencement Date will thereafter receive his Restoration Pension in
the form of a single life annuity.

            (c) The present value of a Participant's Restoration Pension payable
in a single sum in accordance with this Section 4.3 shall be determined by the
Committee according to the actuarial assumptions used at such time by the Plan's
actuary for valuing the Plan's benefits for financial accounting and disclosure
purposes.

            4.4 Death. In the event that an Employee designated as a Participant
with respect to the Restoration Pension should die before the Benefit
Commencement Date thereof and is survived by his Spouse, the Spouse shall
receive a Death Benefit in the same form and at the same time that any death
benefit is paid to the surviving Spouse under the Retirement Plan. The amount of
any Death Benefit under this Section 4.4 shall be

            (a) the amount which would have been payable to the surviving Spouse
under the Retirement Plan calculated on the basis of the Participant's
compensation and final average compensation (or, if applicable, base earnings
and final average excess earnings), as defined in the Retirement Plan subject to
the modifications described in Section 4.1 of this Plan, determined without
regard to the annual limit on compensation under section 401(a)(17) of the Code
and without regard to any applicable maximum benefit limitation under section
415 of the Code, reduced by

            (b) the amount payable to the surviving Spouse under the Retirement
Plan.

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                                    ARTICLE V

                       FINAL AVERAGE COMPENSATION PENSION

            5.1 Amount of Final Average Compensation Pension.

            (a) The annual amount of a Participant's Final Average Compensation
Pension, payable to the Participant on a monthly basis beginning as of his
Normal Retirement Date, shall be equal to

                (1) the Applicable Percentage (not to exceed fifty-five percent
(55%)) of the Participant's Final Average Compensation, reduced by

                (2) the Offset Amount.

            (b) For purposes of the foregoing, a Participant's "Applicable
Percentage" shall be fifty-five percent (55%) multiplied by a fraction, not to
exceed 1, the denominator of which is 27.5 and the numerator of which is the
Participant's Benefit Years determined as of his Benefit Commencement Date.
Notwithstanding the foregoing, upon the happening of a Change in Control, the
Participant's Applicable Percentage shall be fifty-five percent (55%) without
regard to his Benefit Years at such time.

            (c) For purposes of the foregoing, a Participant's "Offset Amount"
means the sum of (1) the annual amount of the Participant's pension payable from
the Retirement Plan, plus (2) the annual amount, if any, of the Participant's
pension payable from any other qualified or nonqualified defined benefit pension
plan or arrangement sponsored by the Company or any affiliate, including without
limitation the Restoration Pension and/or the Company's qualified defined
benefit plan for hourly employees. The Offset Amount shall be determined by
assuming that each benefit under each plan or arrangement which comprises the
Offset Amount is paid beginning at the same time as the Final Average
Compensation Pension and in the form of a joint and 75% survivor annuity with
the Participant's Spouse, and shall be valued by using the actuarial assumptions
used to calculate actuarial equivalences or the reduction factors for early
commencement, as applicable, under such plan or arrangement, if any, or
otherwise under the Retirement Plan. If the Participant has no Spouse, the
Offset Amount payable in the form of a joint and 75% survivor annuity shall be
determined by assuming the Participant had a spouse of the same age.

            5.2 Early Retirement. A Participant who retires from employment with
the Company and all affiliates on or after attaining age 55 but prior to age 62
will receive a Final Average Compensation

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Pension beginning as of his Early Retirement Date. The amount of the
Participant's FAC Pension shall be equal to the amount described at subsection
5.1(a)(l), determined as of his Early Retirement Date but reduced by 2.5% for
each year (0.208% for each month) by which his Early Retirement Date precedes
his Normal Retirement Date, reduced by the Participant's Offset Amount.

            5.3 Late Retirement. A Participant who retires from employment with
the Company and all affiliates after his Normal Retirement Date will receive a
Final Average Compensation Pension beginning as of the first day of the calendar
month coincident with or next following the month in which he retires. Such
pension shall be determined in accordance with Section 5.1 taking into account
all Benefit Years earned up until his Benefit Commencement Date.

            5.4 Disability. In the event an Employee designated as a Participant
with respect to the Final Average Compensation Pension suffers a Disability
prior to his Normal Retirement Date, he shall be eligible to begin to receive
his FAC Pension beginning as of his Normal Retirement Date. The Participant may
make a written request to the Committee or its delegate to begin to receive his
FAC Pension as of his Early Retirement Date, provided he has retired from
employment with the Company and all affiliates and is no longer eligible for
long-term disability payments. Such written request must be received by the
Committee at least 60 days prior to the Participant's intended Benefit
Commencement Date and is subject to the approval of the Committee (or its
delegate) in its sole discretion. The amount of the Participant's FAC Pension
shall be calculated on the basis of his Final Average Compensation determined on
the date his Disability commenced, and actual and projected Benefit Years
following the onset of his Disability until the first to occur of (a) the
cessation of his Disability (including by reason of a determination that he is
no longer eligible for payments under the Company's long-term disability plan)
or (b) his Benefit Commencement Date. If the Participant's Benefit Commencement
Date precedes his Normal Retirement Date, the amount of his FAC Pension shall be
reduced to reflect its early commencement in accordance with Section 5.2.

            5.5 Survivor's Benefit. (a) In the event that an Employee designated
as a Participant with respect to the Final Average Compensation Pension should
die before his Benefit Commencement Date and is survived by his Spouse, the
Spouse shall receive a Survivor's Benefit. The Survivor's Benefit shall be a
monthly pension for life and shall begin as of the first day of the month
following the month of the Participant's death, provided the Committee is given
timely notice of the Participant's death.

            (b) The Survivor's Benefit shall be the benefit the Spouse would
have received if the Participant (1) had separated from service

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on the date of his death (if he is then an Employee), (2) had survived to the
Benefit Commencement Date determined under paragraph (a) above, (3) had then
begun to receive an immediate FAC Pension in the form of a Joint and 75%
Surviving Spouse's Annuity and (4) died on the following day. If the Survivor's
Benefit begins to be paid before what would have been the Participant's Normal
Retirement Date, the amount of the Final Average Compensation Pension on which
the Survivor's Benefit is based shall be reduced as set forth in Section 5.2 to
reflect its early commencement, but such reduction shall not take into account
any period of time before what would have been the Participant's 55th birthday.

            5.6 Form of Benefit. Except as provided in subsections (b) or (c),
the only form of benefit payable under this Plan with respect to the Final
Average Compensation Pension shall be the Joint and 75% Surviving Spouse's
Annuity (or, in the case of the Survivor's Benefit under Section 5.5, a single
life annuity based on the survivor portion of a Joint and 75% Surviving Spouse's
Annuity.) If the Participant is not married as of his Benefit Commencement Date,
his monthly pension benefit will end as of the month in which his death occurs,
and will not be adjusted to reflect that there is no survivor benefit payable.

            (b) The Participant may make a written request to the Committee or
its delegate to receive payment of the present value of his FAC Pension in a
single sum. Such written request must be received by the Committee at least 60
days prior to the Participant's termination of employment and is subject to the
approval of the Committee in its sole and absolute discretion.

            (c) The Committee may in its sole discretion pay the present value
of a Participant's FAC Pension in a single sum as soon as practicable following
the Participant's termination of employment if such present value is not more
than $20,000 at the time the Participant terminates employment.

            (d) For purposes of subsections (b) and (c) above, the present value
of a Participant's FAC Pension, as of any date of reference, shall be determined
by the Committee according to the actuarial assumptions used at such time by the
Plan's actuary for valuing the Plan's benefits for financial accounting and
disclosure purposes.

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                                   ARTICLE VI
                                    FUNDING

            6.1 Source of Funding. (a) This Plan shall be unfunded, and payment
of benefits hereunder shall be made from the general assets of the Company. Any
such asset which may be set aside, earmarked or identified as being intended for
the provision of benefits hereunder shall remain an asset of the Company and
shall be subject to the claims of its general creditors. Each Participant shall
be a general creditor of the Company to the extent of the value of his or her
benefit accrued hereunder, but he shall have no right, title, or interest in any
specific asset that the Company may set aside or designate as intended to be
applied to the payment of benefits under this Plan.

            (b) Notwithstanding the foregoing, the Company may, in its
discretion, establish an irrevocable grantor trust for the purpose of funding
all or part of its obligations under this Plan; provided however, that the terms
of such trust require that the assets thereof remain subject to the claims of
the Company's judgment creditors in the event of bankruptcy or insolvency and
are non-assignable and non-alienable by any Participant or beneficiary prior to
distribution thereof, and that such terms otherwise comply with such other
requirements as the Internal Revenue Service may prescribe so that the assets
placed in such trust, and the income therefrom, do not constitute income to any
participant or beneficiary until actual receipt thereof.

                                   ARTICLE VII

                                 ADMINISTRATION

            7.1 Administration by Committee. This Plan shall be administered by
the Committee, which shall be responsible for the general administration of the
Plan under the policy guidance of the Board. The Committee is hereby designated
as the Plan's named fiduciary, as defined in ERISA.

            7.2 Duties and Powers of Committee. In addition to the duties and
powers described elsewhere hereunder, the Committee shall have the following
specific duties and powers:

            (a) to retain such consultants, accounts, attorneys, and actuaries
as may be deemed necessary or desirable to render statements, reports, and
advice with respect to the Plan and to assist the Committee in complying with
all applicable rules and regulations

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affecting the Plan; any consultants, accountants, attorneys, and actuaries may
be the same as those retained by the Company;

            (b) to decide appeals under this Article;

            (c) to enact rules and regulations to carry out the provisions of
the Plan;

            (d) to resolve questions or disputes relating to eligibility for
benefits or the amount of benefits under the Plan;

            (e) to construe and interpret the provisions of the Plan and supply
any omissions in accordance with the intent of the Plan;

            (f) to decide all questions of eligibility for benefits under the
Plan, to determine the amount, manner and time of payment of any benefits
hereunder, and to authorize the payment of benefits;

            (g) to evaluate administrative procedures; and

            (h) to delegate such duties and powers as the Committee shall
determine from time to time to any person or persons. To the extent of any such
delegation, the delegate shall have the duties, powers, authority and discretion
of the Committee.

            Any determinations made by the Committee pursuant to this Article
shall be conclusive and binding on all parties. The Committee shall have sole
discretion in carrying out its responsibilities.

            The expenses incurred by the Committee in connection with the
operation of the Plan, including, but not limited to, the expenses incurred by
reason of the engagement of professional assistants and consultants, shall be
paid by the Company and shall not affect the Participants' right to or amount of
benefits.

            7.3 Records. The Committee shall keep or cause to be kept records of
all proceedings and actions, shall maintain all such books of account, records,
and other data as shall be necessary for the proper administration of the Plan.

            7.4 Claims for Benefits.

            (a) If the Participant or the Participant's beneficiary (hereinafter
referred to as the "Claimant") is denied all or a portion of any expected
benefit under this Plan for any reason, he may file a claim with the Committee.
The Committee shall notify the Claimant within ninety (90) days of receipt of
the claim of allowance or denial of the claim, unless the claimant receives
written notice from the

                                       14
<PAGE>   17
Committee prior to the end of the 90-day period stating the special
circumstances requiring an extension of time for decision and the date by which
a final decision shall be made. If a decision is not provided within 90 days,
the claim is deemed denied, and the Claimant may proceed to request a review of
the claim as described in subsection (b) below. The notice of a denial of
benefits shall be in writing, sent by mail to Claimant's last known address, and
shall contain the following information: the specific reasons for the denial;
specific reference to pertinent provisions of the Plan on which the denial is
based; if applicable, a description of any additional information or material
necessary to perfect the claim and an explanation of why such information or
material is necessary; and explanation of the review procedure.

            (b) A Claimant is entitled to request a review of any denial of his
claim by the Committee. The request for review must be submitted to the
Committee in writing within sixty days of mailing and notice of the denial.
Absent a request for review within the sixty day period, the claim will be
deemed to be conclusively denied.

            (c) The Claimant or his representative shall be entitled to review
all pertinent documents and to submit issues and comments in writing. The
Committee in its sole discretion may afford the Claimant a hearing. The
Committee shall render a review decision in writing within sixty days after
receipt of a request for a review, provided that, in special circumstances (such
as to hold a hearing) the Committee may extend the time for decision by not more
than sixty days upon written notice to the Claimant. The Claimant shall receive
written notice of the Committee's decision, which shall contain specific reasons
for the decision with reference to the pertinent provisions of the Plan.

            (d) The filing of litigation against the Company, the Committee or
any of its agents concerning the granting or denial of Plan benefits will be
deemed a waiver of all rights under the Plan.
(b)

                                  ARTICLE VIII

                           AMENDMENT AND TERMINATION

            8.1 Amendment and Termination. The Company reserves the right to
amend this Plan at any time and from time to time in any fashion, and to
terminate it at will; provided however, that no such amendment or termination
may result in the reduction of the Accrued Benefit of any Participant as of the
date of such amendment or termination.

                                       15
<PAGE>   18
                                   ARTICLE IX

                                 MISCELLANEOUS

            9.1 Nonalienation of Benefits. Except as hereinafter provided with
respect to marital disputes, none of the benefits or rights of a Participant or
any beneficiary of a Participant shall be subject to the claim of any creditor,
and in particular, to the fullest extent permitted by law, all such benefits and
rights shall be free from attachment, garnishment or any other legal or
equitable process available to any creditor of the Participant or the
beneficiary. Neither the Participant nor his Spouse shall have the right to
alienate, anticipate, commute, pledge, encumber, or assign any of the benefits
or payments which either of them may expect to receive, contingently or
otherwise, under this Plan. In cases of marital dispute, the Company will
observe the terms of the Plan unless and until ordered to do otherwise by a
state or Federal court. As a condition of participation, a Participant agrees to
hold the Company harmless from any claim that may arise out of the Company's
compliance with an order of any state or Federal court, whether such order
effects a judgment of such court or is issued to enforce a judgment or order of
another court.

            9.2 No Contract of Employment. Nothing contained herein shall be
construed as conferring upon any person the right to be employed or continue in
the employ of the Company.

            9.3 Applicable Law. This Plan shall be governed and construed in
accordance with the laws of the Commonwealth of Pennsylvania.

            9.4 Gender and Number. Except where otherwise indicated by the
context, any masculine terminology used herein shall also include the feminine
and vice versa, and the definition of any term herein in the singular shall also
indicate the plural, and vice versa.

            9.5 Additional Benefits. In addition to the benefits provided under
the other provisions of this Plan, any benefits authorized by the Company's
Board for employees who are members of a select group of management or highly
compensated employees which are not payable under the terms of any other Plan
maintained by the Company shall be paid under this Plan at the times and in the
manner authorized by the Board.

            IN WITNESS WHEREOF, the P.H. Glatfelter Company has caused this
Plan, as amended and restated effective April 23, 1998, and amended

                                       16
<PAGE>   19
December 20, 2000, to be executed this 19th day of March, 2001.

ATTEST:                                            P.H. GLATFELTER COMPANY

/s/ Markus R. Mueller                              By: /s/ C. Matthew Smith
-------------------------------                    ---------------------------

[Corporate Seal]

                                       17<PAGE>   1

                                  EXHIBIT 10(g)

                            P. H. GLATFELTER COMPANY

                   1992 KEY EMPLOYEE LONG-TERM INCENTIVE PLAN

                         (AS AMENDED DECEMBER 20, 2000)

                                   ARTICLE I

                                    PURPOSE
                                    -------

      The purpose of this 1992 Key Employee Long-Term Incentive Plan (the
"Plan") is to enable P. H. Glatfelter Company (the "Company") to offer key
employees of the Company and its subsidiaries equity interests in the Company
and other incentive awards, including performance-based stock incentives, and to
offer directors of the Company stock options and equity interests in the
Company, thereby attracting, retaining and rewarding such individuals, and
strengthening the mutuality of interests between such individuals and the
Company's shareholders.

                                   ARTICLE II

                                   DEFINITIONS
                                   -----------

      For purposes of this Plan, the following terms shall have the following
meanings:

      2.1 "Award" shall mean any award under this Plan of any Stock Option,
Restricted Stock, Performance Share or Performance Unit.

      2.2   "Board" shall mean the Board of Directors of the Company.

      2.3   "Change in Control".  For the purposes of this Agreement, a
"Change in Control" shall mean:

            (a) The acquisition, directly or indirectly, other than from the
Company, by any person, entity or "group" (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), excluding, for this purpose, the Company, its subsidiaries, any
employee benefit plan of the Company or its subsidiaries, and any purchaser or
group of purchasers who are descendants of, or entities controlled by
descendants of, P.H. Glatfelter which acquires beneficial ownership of voting
securities of the Company) (a "Third Party") of beneficial ownership (within the
meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of the
combined voting power of the Company's then outstanding

                                       1
<PAGE>   2
voting securities entitled to vote generally in the election of directors; or

            (b) Individuals who, as of the date hereof, constitute the Board
(the "Incumbent Directors") cease for any reason to constitute at least a
majority of the Board, provided that any person becoming a director subsequent
to the date hereof whose election, or nomination for election by the Company's
shareholders, was approved by a vote of at least a majority of the Incumbent
Directors who are directors at the time of such vote shall be, for purposes of
this Agreement, an Incumbent Director; or

            (c) Consummation of (i) a reorganization, merger or consolidation,
in each case, with respect to which persons who were the shareholders of the
Company immediately prior to such reorganization, merger or consolidation (other
than the acquiror) do not, immediately thereafter, beneficially own more than
50% of the combined voting power of the reorganized, merged or consolidated
company's then outstanding voting securities entitled to vote generally in the
election of directors, or (ii) a liquidation or dissolution of the Company or
the sale of all or substantially all of the assets of the Company (whether such
assets are held directly or indirectly) to a Third Party.

            In addition to the foregoing, a Change in Control with respect to an
individual Participant shall be deemed to occur if the Participant's employment
with the Company is terminated prior to the date on which a Change in Control
occurs, and it is reasonably demonstrated that such termination (i) was at the
request of a third party who has taken steps reasonably calculated to effect a
Change in Control or (ii) otherwise arose in connection with or anticipation of
a Change in Control."

      2.4 "Code" shall mean the Internal Revenue Code of 1986, as amended.

      2.5 "Committee" shall mean the Compensation Committee of the Board
consisting of three or more Directors, each of whom shall be a "non-employee
director" within the meaning of Rule 16b-3 promulgated by the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as in effect from
time to time, and an "outside director" within the meaning of Section 162(m) of
the Code and regulations promulgated thereunder, as in effect from time to time.

      2.6 "Common Stock" means the Common Stock, par value $.01 per share, of
the Company.

      2.7 "Disability" shall mean a disability due to any medically determinable
physical or mental impairment that prevents a Participant from fulfilling the
duties that such Participant was performing at the time of the occurrence of
such disability and which can be expected to result in death or which has lasted
or can be expected to last for a

                                       2
<PAGE>   3
continuous period of more than twelve months, as determined by the Committee in
its sole discretion.

      2.8 "Fair Market Value" for purposes of this Plan, unless otherwise
required by any applicable provision of the Code or any regulations issued
thereunder, shall mean, as of any date, the average of the high and low sales
prices of a share of Common Stock as reported on the American Stock Exchange.

      2.9 "Incentive Stock Option" shall mean any Stock Option awarded under
this Plan intended to be and designated as an "Incentive Stock Option" within
the meaning of Section 422 of the Code.

      2.10 "Non-Qualified Stock Option" shall mean any Stock Option awarded
under this Plan that is not an Incentive Stock Option.

      2.11 "Participant" shall mean an individual to whom an Award has been made
pursuant to this Plan.

      2.12  "Performance Cycle" shall have the meaning set forth in Section
9.1.

      2.13  "Performance Period" shall have the meaning set forth in Section
8.1.

      2.14 "Performance Share" shall mean an Award made pursuant to Article VIII
of this Plan of the right to receive Common Stock or cash of an equivalent
value, or a combination of both, at the end of a specified Performance Period.

      2.15 "Performance Unit" shall mean an Award made pursuant to Article IX of
this Plan of the right to receive a fixed dollar amount, payable in cash or
Common Stock or a combination of both, at the end of a specified Performance
Cycle.

      2.16 "Restricted Stock" shall mean an Award of shares of Common Stock
under this Plan that is subject to restrictions under Article VII.

      2.17 "Restriction Period" shall have the meaning set forth in Section 7.2
(d).

      2.18 "Stock Option" or "Option" shall mean any option to purchase shares
of Common Stock granted pursuant to Article VI.

      2.19 "Termination of employment" shall mean a termination of employment
for reasons other than a military or personal leave of absence granted by the
Company or, in the case of a director of the Company, termination of service as
a member of the Board.

                                       3
<PAGE>   4
                                  Article III

                                 ADMINISTRATION
                                 --------------

      3.1   The Committee.  The Plan shall be administered and interpreted by
the Committee.

      3.2 Awards. The Committee shall have full authority to grant, pursuant to
the terms of this Plan, to persons eligible under Article V: (i) Stock Options,
(ii) Restricted Stock, (iii) Performance Shares and (iv) Performance Units. In
particular, the Committee shall have the authority:

            (a) to select the persons eligible under Article V to whom Stock
      Options, Restricted Stock, Performance Shares and Performance Units may
      from time to time be granted hereunder;

            (b) to determine whether and to what extent Incentive Stock Options,
      Non-Qualified Stock Options, Restricted Stock, Performance Shares and
      Performance Units, or any combination thereof, are to be granted hereunder
      to one or more persons eligible under Article V;

            (c)   to determine the number of shares of Common Stock to be
      covered by each such Award granted hereunder;

            (d) to determine the terms and conditions, not inconsistent with the
      terms of this Plan, of any Award granted hereunder (including, but not
      limited to, the option or purchase price, any restriction or limitation,
      any vesting schedule or acceleration thereof, or any forfeiture
      restrictions or waiver thereof, regarding any Award and the shares of
      Common Stock relating thereto, based on such factors as the Committee
      shall determine, in its sole discretion); and

            (e) to determine whether, to what extent and under what
      circumstances Common Stock and other amounts payable with respect to an
      Award under this Plan shall be deferred.

      3.3 Guidelines. Subject to Article X hereof, the Committee shall have the
authority to adopt, alter and repeal such administrative rules, guidelines and
practices governing this Plan as it shall, from time to time, deem advisable; to
interpret the terms and provisions of this Plan and any Award issued under this
Plan (and any agreements relating thereto); and to otherwise supervise the
administration of this Plan. The Committee may correct any defect, supply any
omission or reconcile any inconsistency in this Plan or in any Award granted in
the manner and to the extent it shall deem necessary to carry this Plan into
effect. Notwithstanding the foregoing, no action of the Committee under this
Section 3.3 shall impair the rights of any Participant without the Participant's
consent.

                                       4
<PAGE>   5
         3.4 Decisions Final. Any decision, interpretation or other action made
or taken in good faith by the Committee arising out of or in connection with the
Plan shall be final, binding and conclusive on the Company and all employees and
directors and their respective heirs, executors, administrators, successors and
assigns.

                                   ARTICLE IV

                                SHARE LIMITATION
                                ----------------

         4.1 Shares. The maximum aggregate number of shares of Common Stock
which may be issued under this Plan shall not exceed five million (5,000,000)
shares (subject to any increase or decrease pursuant to Section 4.2) which may
be either authorized and unissued Common Stock or issued Common Stock reacquired
by the Company. If any Option granted under this Plan shall expire, terminate or
be cancelled for any reason without having been exercised in full, the number of
unpurchased shares shall again be available for the purposes of the Plan;
provided, however, that if such expired, terminated or cancelled Option shall
have been issued in conjunction with another Award, none of such unpurchased
shares shall again become available for purposes of this Plan to the extent that
the related Award granted under this Plan is exercised. Further, if any shares
of Restricted Stock granted hereunder are forfeited or any Award of Performance
Shares terminates without the delivery of such shares, the shares subject to
such Award, to the extent of such forfeiture or termination, shall again be
available under this Plan.

         4.2 Changes. In the event of any merger, reorganization, consolidation,
recapitalization, dividend (other than a regular cash dividend), stock split, or
other change in corporate structure affecting the Common Stock, such
substitution or adjustment shall be made in the maximum aggregate number of
shares which may be issued under this Plan, in the maximum aggregate number of
shares with respect to which Options or Performance Shares may be granted under
this Plan to any individual during any calendar year, in the number and option
price of shares subject to outstanding Options granted under this Plan, and in
the number of shares subject to other outstanding Awards granted under this
Plan, as may be determined to be appropriate by the Committee, in its sole
discretion, provided that the number of shares subject to any Award shall always
be a whole number.

                                    ARTICLE V

                                   ELIGIBILITY
                                   -----------

         5.1 Employees. Officers and other key employees of the Company and any
subsidiary of the Company are eligible to be granted Awards under this Plan.

         5.2 Directors. Directors of the Company who are not employees of the
Company or one of its subsidiaries are eligible to be

                                       5
<PAGE>   6
granted Non-Qualified Stock Options and Restricted Stock under this Plan.

                                   ARTICLE VI

                                  STOCK OPTIONS
                                  -------------

         6.1 Options. Each Stock Option granted under this Plan shall be either
an Incentive Stock Option or a Non-Qualified Stock Option.

         6.2 Grants. The Committee shall have the authority to grant to any
person, to the extent eligible under Article V, one or more Incentive Stock
Options, Non-Qualified Stock Options, or both types of Stock Options. To the
extent that any Stock Option does not qualify as an Incentive Stock Option
(whether because of its provisions or the time or manner of its exercise or
otherwise), such Stock Option or the portion thereof which does not qualify as
an Incentive Stock Option shall constitute a separate Non-Qualified Stock
Option.

         6.3 Incentive Stock Options. Anything in the Plan to the contrary
notwithstanding, no term of this Plan relating to Incentive Stock Options shall
be interpreted, amended or altered, nor shall any discretion or authority
granted under the Plan be exercised, so as to disqualify the Plan under Section
422 of the Code, or, without the consent of the Participants affected, to
disqualify any Incentive Stock Option under such Section 422.

         6.4 Terms of Options. Options granted under this Plan shall be subject
to the following terms and conditions and shall contain such additional terms
and conditions, not inconsistent with the terms of this Plan, as the Committee
shall deem desirable:

                  (a) Stock Option Certificate. Each Stock Option shall be
            evidenced by, and subject to the terms of, a Stock Option
            Certificate executed by the Company. The Stock Option Certificate
            shall specify whether the Option is an Incentive Stock Option or a
            Non-Qualified Stock Option, the number of shares of Common Stock
            subject to the Stock Option, the option price, the option term, and
            the other terms and conditions applicable to the Stock Option.

                  (b) Option Price. The option price per share of Common Stock
            purchasable upon exercise of a Stock Option shall be determined by
            the Committee at the time of grant but shall be not less than 100%
            of the Fair Market Value of the Common Stock on the date of grant if
            the Stock Option is intended to be an Incentive Stock Option and
            shall not be less than 85% of the Fair Market Value of the Common
            Stock on the date of grant if the Stock Option is intended to be a
            Non-Qualified Stock Option.

                                       6

<PAGE>   7
                  (c)   Option Term.  The term of each Stock Option shall be
            fixed by the Committee, but no Stock Option shall be exercisable
            more than ten years after the date it is granted.

                  (d) Exercisability. Stock Options shall be exercisable at such
            time or times and subject to such terms and conditions as shall be
            determined by the Committee at the time of grant, provided that no
            Stock Option may be exercised within six months after the date of
            grant.

                  (e) Method of Exercise. Subject to such installment exercise
            and waiting period provisions as may be imposed by the Committee,
            Stock Options may be exercised in whole or in part at any time
            during the option term, by giving written notice of exercise to the
            Company specifying the number of shares to be purchased. Such notice
            shall be accompanied by payment in full of the option price in such
            form as the Committee may accept and, if requested, by the
            representation described in Section 12.4. Unless otherwise
            determined by the Committee in its sole discretion at or after
            grant, payment in full or in part may be made in the form of Common
            Stock duly owned by the Participant (and for which the Participant
            has good title free and clear of any liens and encumbrances), based
            on the Fair Market Value of the Common Stock on the last trading
            date preceding payment. Upon payment in full of the option price, as
            provided herein, a stock certificate or stock certificates
            representing the number of shares of Common Stock to which the
            Participant is entitled shall be issued and registered in the name
            of and delivered to the Participant.

                  (f) Death. Unless otherwise determined by the Committee at the
            time of grant, if a Participant's employment by the Company or one
            of its subsidiaries, or a Participant's service on the Board,
            terminates by reason of death, any Stock Option held by such
            Participant which was exercisable at the date of death may
            thereafter be exercised by the legal representative of the
            Participant's estate for a period of one year from the date of such
            death or until the expiration of the stated term of such Stock
            Option, whichever period is the shorter.

                  (g) Disability. If the Committee, in its sole discretion,
            determines that a Participant has suffered a Disability, any Stock
            Option held by such Participant which was exercisable on the date on
            which such Disability commenced (as determined by the Committee in
            its sole discretion) may thereafter be exercised by the Participant
            for a period of one year from the date of such commencement (or such
            other period as may be determined by the Committee at the time of
            grant) or until the expiration of the stated term of such Stock
            Option, whichever period is the shorter;

                                       7
<PAGE>   8
            provided, however, that, if the Participant dies within such
            one-year period (or other period determined by the Committee at the
            time of grant), any unexercised Stock Option held by such
            Participant shall thereafter be exercisable to the extent to which
            it was exercisable at the time of death, for a period of one year
            from the date of such death or until the expiration of the stated
            term of such Stock Option, whichever period is the shorter. In the
            event of termination of employment by reason of Disability, if an
            Incentive Stock Option is exercised after the expiration of the
            exercise periods that apply for purposes of Section 422 of the Code,
            such Stock Option will thereafter be treated as a Non-Qualified
            Stock Option.

                  (h) Termination of Employment. Unless otherwise determined by
            the Committee at the time of grant, if a Participant's employment by
            the Company and its subsidiaries, or a Participant's service on the
            Board, terminates for any reason other than death or Disability, the
            Stock Option shall terminate as of the date of such termination of
            employment.

                  (i) Incentive Stock Option Limitations. To the extent that the
            aggregate Fair Market Value (determined as of the date of grant) of
            the Common Stock with respect to which Incentive Stock Options are
            exercisable for the first time by the Participant during any
            calendar year under the Plan and/or any other stock option plan of
            the Company or any subsidiary or parent corporation (within the
            meaning of Section 424 of the Code) exceeds $100,000, such Options
            shall be treated as Options which are not Incentive Stock Options.

                  Should any of the foregoing provisions not be necessary in
            order for the Stock Options to qualify as Incentive Stock Options,
            or should any additional provisions be required, the Committee may
            amend the Plan accordingly, without the necessity of obtaining the
            approval of the shareholders of the Company.

                  (j) Committee Discretion. Notwithstanding any other provision
            of this Plan, if a Participant's employment by the Company or any of
            its subsidiaries, or a Participant's service on the Board,
            terminates for any reason (including death or Disability), the
            Committee may, in its sole discretion, accelerate the exercisability
            of any outstanding Stock Option held by such Participant and/or
            extend the post-termination exercise periods set forth in
            subsections (f), (g) and (h) of this Section 6.4, provided that such
            post-termination exercise period may not be extended beyond the
            expiration of the stated term of such Stock Option.

                                       8
<PAGE>   9
         6.5 Individual Limit. The maximum aggregate number of shares of Common
Stock with respect to which Stock Options may be granted under this Plan to any
individual during any calendar year shall not exceed two hundred thousand
(200,000) shares (subject to any increase or decrease pursuant to Section 4.2).

                                   ARTICLE VII

                                RESTRICTED STOCK
                                ----------------

         7.1 Awards of Restricted Stock. The Committee shall determine the
eligible persons to whom, and the time or times at which, grants of Restricted
Stock will be made, the number of shares to be awarded, the price (if any) to be
paid by the recipient, the time or times within which such Awards may be subject
to forfeiture, the vesting schedule and rights to acceleration thereof, and the
other terms and conditions of the Awards, in addition to those set forth in
Section 7.2.

      The provisions of Restricted Stock Awards need not be the same with
respect to each Participant, and such Awards to individual Participants need not
be the same in subsequent years.

         7.2 Terms and Conditions. Restricted Stock awarded pursuant to this
Article VII shall be subject to the following terms and conditions and such
other terms and conditions, not inconsistent with the terms of this Plan, as the
Committee, shall deem desirable:

                  (a)   Purchase Price.  Unless otherwise determined by the
            Committee, the purchase price for shares of Restricted Stock
            shall be zero.

                  (b) Award Certificate. Each Restricted Stock Award shall be
            evidenced by, and subject to the terms of, a Restricted Stock Award
            Certificate executed by the Company. The Restricted Stock Award
            Certificate shall specify the number of shares of stock subject to
            the Award, the time or times within which such Restricted Stock is
            subject to forfeiture and the other terms, conditions and
            restrictions applicable to such Award.

                  (c) Stock Certificate. When the restrictions applicable to a
            Restricted Stock Award, or any portion thereof, lapse, a stock
            certificate or stock certificates representing the number of shares
            of Common Stock covered by such Restricted Stock Award, or portion
            thereof, shall be issued and registered in the name of and delivered
            to the Participant. In lieu of issuing a stock certificate or stock
            certificates representing such shares of Common Stock, the Committee
            may, in its sole discretion, elect to distribute to the Participant
            cash in an amount equal to the Fair Market Value of such shares of
            Common Stock on the date on which the Restricted Stock ceased to be
            subject to

                                       9
<PAGE>   10
            forfeiture, provided that the shares of Common Stock to which the
            Participant was entitled shall be deemed to have been issued for
            purposes of Article IV hereof.

                  (d) Restriction Period. Subject to the provisions of this Plan
            and the Restricted Stock Award Certificate, shares of Restricted
            Stock will be forfeited to the Company if the Participant ceases to
            be an employee of the Company and any of its subsidiaries, or ceases
            to be a member of the Board, during a period set by the Committee
            commencing with the date of such Award (the "Restriction Period").
            Subject to the provisions of this Plan, the Committee, in its sole
            discretion, may provide for the lapse of such restrictions in
            installments, provided that no such restrictions shall lapse within
            six months after the date of the Award.

                  (e) Death or Disability. Subject to the provisions of this
            Plan and the Restricted Stock Award Certificate, upon the death or
            Disability of a Participant during the Restriction Period,
            restrictions will lapse with respect to a percentage of the
            Restricted Stock Award granted to the Participant that is equal to
            the percentage of the Restriction Period that has elapsed as of the
            date of death or the date -on which such Disability commenced (as
            determined by the Committee in its sole discretion), and a
            certificate or certificates representing such shares of Common Stock
            shall be issued and registered in the name of the Participant or the
            Participant's estate, as the case may be.

                  (f) Committee Discretion. Notwithstanding any other provision
            of this Plan, if a Participant's employment by the Company or any of
            its subsidiaries, or a Participant's service on the Board,
            terminates for any reason (including death or Disability), the
            Committee may, in its sole discretion, determine that the
            restrictions applicable to any outstanding Restricted Stock Award
            held by such Participant shall lapse at the time of such termination
            or on such accelerated basis as may be determined by the Committee,
            in its sole discretion.

                                  ARTICLE VIII

                               PERFORMANCE SHARES
                               ------------------
         8.1 Award of Performance Shares. The Committee shall determine the
eligible persons to whom and the time or times at which Performance Shares shall
be awarded, the number of Performance Shares to be awarded to any person, the
duration of the period (the "Performance Period") during which, and the
conditions under which, receipt of the shares of Common Stock will be deferred,
and the other

                                       10
<PAGE>   11
terms and conditions of the Award in addition to those set forth in Section 8.2.

      The provisions of Performance Share Awards need not be the same with
respect to each Participant, and such Awards to individual Participants need not
be the same in subsequent years.

         8.2 Terms and Conditions. Performance Shares awarded pursuant to this
Article VIII shall be subject to the following terms and conditions and such
other terms and conditions, not inconsistent with the terms of this Plan, as the
Committee shall deem desirable:

                  (a) Conditions. The Committee, in its sole discretion, shall
            specify the Performance Period during which, and the conditions
            under which, the receipt of shares of Common Stock covered by the
            Performance Share Award will be deferred, provided that the
            Performance Period shall not be less than six months. The receipt of
            shares of Common Stock pursuant to a Performance Share Award shall
            be conditioned upon the attainment of one or more preestablished
            objective performance goals, within the meaning of Section 162(m) of
            the Code and regulations promulgated thereunder, established by the
            Committee. Such goals must be established in writing not later than
            90 days after the commencement of the Performance Period, provided
            that the outcome is substantially uncertain at the time the goal is
            established (provided that in no event may the performance goal be
            established after 25% of the Performance Period has elapsed). The
            performance goals may be based on the Company's stock price, return
            on assets, return on capital employed, return on shareholders'
            equity, earnings, earnings per share, total shareholder return,
            sales, costs, or such other objective performance goals as may be
            established by the Committee from time to time.

                  (b) Award Certificate. Each Performance Share Award shall be
            evidenced by, and subject to the terms of, a Performance Share
            Certificate executed by the Company. The Performance Share
            Certificate shall specify the number of shares of stock subject to
            the Award, the applicable Performance Period and the other terms and
            conditions applicable to such Award.

                  (c) Stock Certificate. If the Committee certifies in writing,
            after the expiration of the Performance Period, that the performance
            goals specified in the Performance Share Certificate and all other
            material terms of the award have been satisfied, a stock certificate
            or stock certificates representing the number of shares of Common
            Stock covered by the Performance Share Award shall be issued and
            registered in the name of and delivered to the Participant. In lieu
            of issuing a stock certificate or stock certificates representing
            such shares of Common

                                       11
<PAGE>   12
            Stock, the Committee may, in its sole discretion, elect to
            distribute to the Participant cash in an amount equal to the Fair
            Market Value of such shares of Common Stock at the end of the
            Performance Period, provided that the shares of Common Stock to
            which the Participant was entitled shall be deemed to have been
            issued for purposes of Article IV hereof.

                  (d) Death or Disability. Subject to the provisions of this
            Plan and the Performance Share Certificate, in the event of the
            death or Disability of a Participant, the Participant or the
            Participant's estate, as the case may be, shall be entitled to
            receive, at the expiration of the Performance Period, a percentage
            of Performance Shares that is equal to the percentage of the
            Performance Period that had elapsed as of the date of death or date
            on which such Disability commenced (as determined by the Committee
            in its sole discretion), provided that the Committee, in its sole
            discretion, determines that the conditions specified in the
            Performance Share Certificate have been satisfied, and a certificate
            or certificates representing such shares of Common Stock shall be
            issued and registered in the name of the Participant or the
            Participant's estate, as the case may be.

                  (e) Termination of Employment. Unless otherwise determined by
            the Committee at the time of grant, the Performance Shares will be
            forfeited upon termination of a Participant's employment with the
            Company and its subsidiaries during the Performance Period for any
            reason other than death or Disability.

         8.3 Individual Limit. The maximum number of shares of Common Stock that
may be subject to Performance Share Awards granted to any individual during any
calendar year shall be sixty thousand (60,000) shares (subject to any increase
or decrease pursuant to Section 4.2).

                                   ARTICLE IX

                                PERFORMANCE UNITS
                                -----------------
         9.1 Award of Performance Units. The Committee shall determine the
eligible persons to whom and the time or times at which Performance Units shall
be awarded, the number of Performance Units to be awarded to any person, the
duration of the period (the "Performance Cycle") during which, and the
conditions under which, a Participant's right to Performance Units will be
vested, the ability of Participants to defer the receipt of payment of such
Units, and the other terms and conditions of the Award in addition to those set
forth in Section 9.2.

      A Performance Unit shall have a fixed dollar value.

                                       12
<PAGE>   13
      The provisions of Performance Unit Awards need not be the same with
respect to each Participant, and such Awards to individual Participants need not
be the same in subsequent years.

         9.2 Terms and Conditions. The Performance Units awarded pursuant to
this Article IX shall be subject to the following terms and conditions and such
other terms and conditions, not inconsistent with the terms of this Plan, as the
Committee shall deem desirable:

                  (a) Conditions. The Committee, in its sole discretion, shall
            specify the Performance Cycle during which, and the conditions under
            which, the Participant's right to Performance Units will be vested,
            provided that the Performance Cycle shall not be less than six
            months. The vesting of Performance Units shall be conditioned upon
            the attainment of one or more pre-established objective performance
            goals, within the meaning of Section 162(m) of the Code and
            regulations promulgated thereunder, established by the Committee.
            Such goals must be established in writing not later than 90 days
            after the commencement of the Performance Period, provided that the
            outcome is substantially uncertain at the time the goal is
            established (provided that in no event may the performance goal be
            established after 25% of the Performance Period has elapsed). The
            performance goals may be based on the Company's stock price, return
            on assets, return on capital employed, return on shareholders'
            equity, earnings, earnings per share, total shareholder return,
            sales, costs, or such other objective performance goals as may be
            established by the Committee from time to time.

                  (b) Award Certificate. Each Performance Unit Award shall be
            evidenced by, and subject to the terms of, a Performance Unit
            Certificate executed by the Company. The Performance Unit
            Certificate shall specify the dollar value of the Award, the
            applicable Performance Cycle and the other terms and conditions
            applicable to such Award.

                  (c) Vesting; Payment. If the Committee certifies in writing,
            after the expiration of the Performance Cycle, that the performance
            goals specified in the Performance Unit Certificate and all other
            material terms of the award have been satisfied, the Performance
            Units will be vested and the Participant will receive payment of the
            amount specified in the Performance Unit Certificate as soon as
            practicable thereafter. Payment may be made in cash, shares of
            Common Stock or a combination of both, as determined by the
            Committee, in its sole discretion.

                  (d) Death or Disability. Subject to the provisions of this
            Plan and the Performance Unit Certificate, in the event of the death
            or Disability of a Participant, the Participant or the Participant's
            estate, as the case may

                                       13
<PAGE>   14
            be, shall be entitled to receive, at the expiration of the
            Performance Cycle, a percentage of the Performance Units that is
            equal to the percentage of the Performance Cycle that had elapsed as
            of the date of death or date on which such Disability commenced (as
            determined by the Committee in its sole discretion), provided that
            the Committee, in its sole discretion, determines that the
            conditions specified in the Performance Unit Certificate have been
            satisfied, and payment therefor shall be made to the Participant or
            the Participant's estate, as the case may be.

                  (e) Termination of Employment. Unless otherwise determined by
            the Committee at the time of grant, the Performance Units will be
            forfeited upon termination of a Participant's employment with the
            Company and its subsidiaries during the Performance Cycle for any
            reason other than death or Disability.

         9.3 Individual Limit. The maximum dollar amount of Performance Unit
Awards granted to any individual during any calendar year shall be $1,000,000.

                                    ARTICLE X

                            TERMINATION OR AMENDMENT
                            ------------------------

         10.1 Termination or Amendment of Plan. The Board may at any time amend,
discontinue or terminate this Plan or any part thereof (including any amendment
deemed necessary to ensure that the Company may comply with any regulatory
requirement referred to in Article XII); provided, however, that, unless
otherwise required by law, the rights of a Participant with respect to Awards
granted prior to such amendment, discontinuance or termination, may not be
impaired without the consent of such Participant and, provided further, that the
Company will seek the approval of the Company's shareholders for any amendment
if such approval is necessary to comply with the Code, Federal or state
securities law or any other applicable rules or regulations.

         10.2 Amendment of awards. The Committee may amend the terms of any
Award theretofore granted, prospectively or retroactively, but, subject to
Article IV, no such amendment or other action by the Committee shall impair the
rights of any holder without the holder's consent. The Committee may also
substitute new Stock Options for previously granted Stock Options having higher
option prices.

                                   ARTICLE XI

                                 UNFUNDED PLAN
                                 -------------

                                       14
<PAGE>   15
         11.1 Unfunded Status of Plan. This Plan is intended to constitute an
"unfunded" plan for incentive and deferred compensation. With respect to any
payment not yet made to a Participant by the Company, nothing contained herein
shall give any such Participant any rights that are greater than those of a
general creditor of the Company.

                                   ARTICLE XII

                               GENERAL PROVISIONS
                               ------------------

         12.1 Nonassignment. Except as otherwise provided in this Plan, any
Award made hereunder and the rights and privileges conferred thereby shall not
be transferred, assigned, pledged or hypothecated in any way (whether by
operation of law or otherwise), and shall not be subject to execution,
attachment or similar process. Upon any attempt to transfer, assign, pledge,
hypothecate or otherwise dispose of such Award, right or privilege contrary to
the provisions hereof, or upon the levy of any attachment or similar process
thereon, such Award and the rights and privileges conferred hereby shall
immediately terminate and the Award shall immediately be forfeited to the
Company.

         12.2 Change of Control. In the event of a Change of Control, all
outstanding Stock Options that have been held for at least six months shall
immediately become fully exercisable and all outstanding Restricted Stock Awards
that have been held for at least six months shall immediately cease to be
subject to forfeiture or deferral limitations, and upon payment by the
Participant of the option or purchase price, if any, stock certificates
representing the Common Stock covered thereby shall be issued and registered in
the name of and delivered to the Participants or other payment therefor made as
soon as practicable. In the event of a Change of Control, the Committee may, in
its sole discretion, determine whether Participants should immediately receive
some or all of the shares of Common Stock or cash covered by outstanding
Performance Share Awards or Performance Unit Awards.

         12.3 Rights as Shareholder. A Participant shall not be deemed to be the
holder of Common Stock or to have the rights of a holder of Common Stock, with
respect to any Award hereunder, unless and until all applicable restrictions, if
any, have lapsed and a stock certificate or stock certificates representing
shares of Common Stock are issued to him.

         12.4 Legend. The Committee may require each person acquiring shares
pursuant to an Award under the Plan to represent to the Company in writing that
the Participant is acquiring the shares without a view to distribution thereof.
The certificates for such shares may include any legend which the Committee
deems appropriate to reflect any restrictions on transfer.

      All certificates representing shares of Common Stock delivered under the
Plan shall be subject to such stock transfer orders and

                                       15
<PAGE>   16
other restrictions as the Committee may deem advisable under the rules,
regulations and other requirements of the Securities and Exchange Commission,
any stock exchange upon which the Common Stock is then listed, any applicable
Federal or state securities law, and any applicable corporate law, and the
Committee may cause a legend or legends to be put on any such certificates to
make appropriate reference to such restrictions.

         12.5 Other Plans. Nothing contained in this Plan shall prevent the
Board from adopting other or additional compensation arrangements, subject to
shareholder approval if such approval is required; and such arrangements may be
either generally applicable or applicable only in specific cases.

         12.6 No Right to Employment. Neither this Plan nor the grant of any
Option or other Award hereunder shall give any Participant or other employee any
right with respect to continuance of employment by the Company or any
subsidiary, nor shall there be a limitation in any way on the right of the
Company or any subsidiary of the Company by which a Participant is employed to
terminate such Participant's employment at any time. Neither this Plan nor the
grant of any Option or other award hereunder shall give any director the right
to continue as a member of the Board or obligate the Company to nominate any
director for reelection by the Company's shareholders.

         12.7 Withholding of Taxes. The Company shall have the right to reduce
the number of shares of Common Stock otherwise deliverable pursuant to this Plan
by an amount which would have a Fair Market Value equal to the amount of all
Federal, state or local taxes to be withheld, based upon the tax rates then in
effect or the tax rates that the Company reasonably believes will be in effect
for the applicable tax year or to deduct the amount of such taxes from any cash
payment to be made to a Participant, pursuant to this Plan or otherwise. In
connection with such withholding, the Committee may make such arrangements as
are consistent with the Plan as it may deem appropriate.

         12.8 Listing and Other Conditions.

                  (a) As long as the Common Stock is listed on the American
      Stock Exchange or any other national securities exchange or system
      sponsored by a national securities association, the issuance of any shares
      of Common Stock pursuant to an Award shall be conditioned upon such shares
      being listed on such exchange or system. The Company shall have no
      obligation to issue such shares unless and until such shares are so
      listed, and the right to exercise any Option or vest in any other Award
      with respect to such shares shall be suspended until such listing has been
      effected.

                  (b) If at any time counsel to the Company shall be of the
      opinion that any sale or delivery of shares of Common Stock pursuant to an
      Award is or may in the circumstances be unlawful

                                       16
<PAGE>   17
      or result in the imposition of excise taxes under the statutes, rules or
      regulations of any applicable jurisdiction, the Company shall have no
      obligation to make such sale or delivery, or to make any application or to
      effect or to maintain any qualification or registration under the
      Securities Act of 1933, as amended, or otherwise with respect to shares of
      Common Stock or Awards, and the right to exercise any Option or vest in
      any other Award shall be suspended until, in the opinion of such counsel,
      such sale or delivery shall be lawful or shall not result in the
      imposition of excise taxes.

                  (c) Upon termination of any period of suspension under this
      Section 12.8, any Award affected by such suspension which shall not then
      have expired or terminated shall be reinstated as to all shares available
      before such suspension and as to shares which would otherwise have become
      available during the period of such suspension, but no such suspension
      shall extend the term of any Option.

         12.9 Governing Law. This Plan and actions taken in connection herewith
shall be governed and construed in accordance with the laws of the Commonwealth
of Pennsylvania.

         12.10 Construction. Wherever any words are used in this Plan in the
masculine gender they shall be construed as though they were also used in the
feminine gender in all cases where they would so apply, and wherever any words
are used herein in the singular form they shall be construed as though they were
also used in the plural form in all cases where they would so apply.

         12.11 Liability of Committee. No member of the Board of Directors or
the Committee nor any employee of the Company or any of its subsidiaries shall
be liable for any act or action hereunder, whether of omission or commission, by
any other member or employee or by any agent to whom duties in connection with
the administration of this Plan have been delegated or, except in circumstances
involving bad faith, gross negligence or fraud, for anything done or omitted to
be done by himself.

         12.12 Other Benefits. No payment pursuant to an Award under this Plan
shall be deemed compensation for purposes of computing benefits under any
retirement plan of the Company or any of its subsidiaries nor affect any
benefits under any other benefit plan now or hereafter in effect under which the
availability or amount of benefits is related to the level of compensation.

         12.13 Costs. The Company shall bear all expenses incurred in
administering this Plan, including expenses of issuing Common Stock pursuant to
any Awards hereunder.

         12.14 Severability. If any part of this Plan shall be determined to be
invalid or void in any respect, such determination

                                       17
<PAGE>   18
shall not affect, impair, invalidate or nullify the remaining provisions of this
Plan which shall continue in full force and effect.

         12.15 Successory. This Plan shall be binding upon and inure to the
benefit of any successor or successors of the Company.

         12.16 Headings. Article and section headings contained in this Plan are
included for convenience only and are not to be used in construing or
interpreting this Plan.

                                  ARTICLE XIII

                             EFFECTIVE DATE OF PLAN
                             ----------------------

         13.1 This Plan shall be effective as of the date of its approval by the
Company's shareholders.

                                   ARTICLE XIV

                                  TERM OF PLAN
                                  ------------

         14.1 No Stock Option, Restricted Stock, Performance Share or
Performance Unit shall be granted pursuant to this Plan on or after April 23,
2007, but Awards granted prior to such date may extend beyond that date.

                                       18

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