Document:

Exhibit 10.3

 

 

THE EXECUTIVE

NONQUALIFIED “EXCESS” PLANTM

Plan Document

 

	
   

  	
  

  
	
  © 2003 Executive Benefit
  Services, Inc.

  4140 ParkLake Avenue, Suite 500

  Raleigh, NC 27612

  

 

 

	
  

  	
  THE EXECUTIVE

  NONQUALIFIED “EXCESS” PLANTM

  	
   

  

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
  Page

  
	
  Section 1.

  	
   

  	
  Purpose:

  	
  1

  
	
  Section 2.

  	
   

  	
  Definitions:

  	
  1

  
	
  2.1

  	
   

  	
  “Accrued
  Benefit”

  	
  1

  
	
  2.2

  	
   

  	
  “Active
  Participant”

  	
  1

  
	
  2.3

  	
   

  	
  “Adoption
  Agreement”

  	
  2

  
	
  2.4

  	
   

  	
  “Beneficiary”

  	
  2

  
	
  2.5

  	
   

  	
  “Board”

  	
  2

  
	
  2.6

  	
   

  	
  “Committee”

  	
  2

  
	
  2.7

  	
   

  	
  “Compensation”

  	
  2

  
	
  2.8

  	
   

  	
  “Crediting
  Date”

  	
  2

  
	
  2.9

  	
   

  	
  “Deferred
  Compensation Account”

  	
  2

  
	
  2.10

  	
   

  	
  “Disability”

  	
  2

  
	
  2.11

  	
   

  	
  “Education
  Account”

  	
  3

  
	
  2.12

  	
   

  	
  “Education
  Subaccount”

  	
  3

  
	
  2.13

  	
   

  	
  “Education
  Recipient”

  	
  3

  
	
  2.14

  	
   

  	
  “Effective
  Date”

  	
  3

  
	
  2.15

  	
   

  	
  “Employee”

  	
  3

  
	
  2.16

  	
   

  	
  “Employer”

  	
  4

  
	
  2.17

  	
   

  	
  “Employer
  Credits”

  	
  4

  
	
  2.18

  	
   

  	
  “Independent
  Contractor”

  	
  4

  
	
  2.19

  	
   

  	
  “In-Service
  Account”

  	
  4

  
	
  2.20

  	
   

  	
  “Normal
  Retirement Date”

  	
  4

  
	
  2.21

  	
   

  	
  “Participant”

  	
  5

  
	
  2.22

  	
   

  	
  “Participating
  Employer”

  	
  5

  
	
  2.23

  	
   

  	
  “Plan”

  	
  5

  
	
  2.24

  	
   

  	
  “Plan
  Administrator”

  	
  5

  
	
  2.25

  	
   

  	
  “Plan Year”

  	
  5

  
	
  2.26

  	
   

  	
  “Qualifying
  Distribution Event”

  	
  5

  
	
  2.27

  	
   

  	
  “Retire” or “Retirement”

  	
  5

  
	
  2.28

  	
   

  	
  “Retirement
  Account”

  	
  5

  
	
  2.29

  	
   

  	
  “Salary
  Deferral Agreement”

  	
  6

  
	
  2.30

  	
   

  	
  “Salary
  Deferral Credits”

  	
  6

  
	
  2.31

  	
   

  	
  “Service”

  	
  6

  
	
  2.32

  	
   

  	
  “Sponsor”

  	
  6

  
	
  2.33

  	
   

  	
  “Spouse” or “Surviving
  Spouse”

  	
  6

  
	
  2.34

  	
   

  	
  “Trust”

  	
  6

  
	
  2.35

  	
   

  	
  “Trustee”

  	
  6

  
	
  2.36

  	
   

  	
  “Years of
  Service”

  	
  6

  

 

i

 

	
  Section 3.

  	
   

  	
  Participation:

  	
  7

  
	
  Section 4.

  	
   

  	
  Credits to
  Deferred Compensation Account:

  	
  7

  
	
  4.1

  	
   

  	
  Salary
  Deferral Credits

  	
  7

  
	
  4.2

  	
   

  	
  Employer
  Credits

  	
  8

  
	
  4.3

  	
   

  	
  Deferred
  Compensation Account

  	
  8

  
	
  Section 5.

  	
   

  	
  Qualifying
  Distribution Events:

  	
  8

  
	
  5.1

  	
   

  	
  Death of a
  Participant

  	
  8

  
	
  5.2

  	
   

  	
  Disability
  of a Participant

  	
  9

  
	
  5.3

  	
   

  	
  Termination
  of Service

  	
  9

  
	
  5.4

  	
   

  	
  Retirement

  	
  9

  
	
  Section 6.

  	
   

  	
  Distributions
  While in Service:

  	
  9

  
	
  6.1

  	
   

  	
  In-Service
  Withdrawals

  	
  9

  
	
  6.2

  	
   

  	
  Financial
  Hardship Withdrawals

  	
  10

  
	
  6.3

  	
   

  	
  “Haircut”
  Withdrawals

  	
  11

  
	
  6.4

  	
   

  	
  Education
  Withdrawals

  	
  11

  
	
  Section 7.

  	
   

  	
  Qualifying
  Distribution Events Payment Options:

  	
  12

  
	
  7.1

  	
   

  	
  Payment
  Options

  	
  12

  
	
  7.2

  	
   

  	
  Prepayment

  	
  13

  
	
  Section 8.

  	
   

  	
  Vesting:

  	
  13

  
	
  Section 9.

  	
   

  	
  Accounts;
  Deemed Investment; Adjustments to Account:

  	
  14

  
	
  9.1

  	
   

  	
  Accounts

  	
  14

  
	
  9.2

  	
   

  	
  Deemed
  Investments

  	
  14

  
	
  9.3

  	
   

  	
  Adjustments
  to Deferred Compensation Account

  	
  14

  
	
  Section 10.

  	
   

  	
  Benefit
  Exchange:

  	
  15

  
	
  Section 11.

  	
   

  	
  Transfer to
  Qualified Plan:

  	
  15

  
	
  11.1

  	
   

  	
  Maximize
  Qualified Plan Deferrals

  	
  15

  
	
  11.2

  	
   

  	
  Maximize Qualified
  Plan Match

  	
  16

  
	
  11.3

  	
   

  	
  Transfer
  Deferral to Qualified Plan

  	
  16

  
	
  11.4

  	
   

  	
  Credit Match
  to Qualified Plan

  	
  16

  
	
  11.5

  	
   

  	
  Compliance
  with Qualified Plan

  	
  17

  
	
  Section 12.

  	
   

  	
  Administration
  by Committee:

  	
  17

  
	
  12.1

  	
   

  	
  Membership
  of Committee

  	
  17

  
	
  12.2

  	
   

  	
  Committee
  Officers; Subcommittee

  	
  17

  
	
  12.3

  	
   

  	
  Committee
  Meetings

  	
  17

  
	
  12.4

  	
   

  	
  Transaction
  of Business

  	
  18

  
	
  12.5

  	
   

  	
  Committee
  Records

  	
  18

  
	
  12.6

  	
   

  	
  Establishment
  of Rules

  	
  18

  
	
  12.7

  	
   

  	
  Conflicts of
  Interest

  	
  18

  

 

ii

 

	
  12.8

  	
   

  	
  Correction
  of Errors

  	
  18

  
	
  12.9

  	
   

  	
  Authority to
  Interpret Plan

  	
  19

  
	
  12.10

  	
   

  	
  Third Party
  Advisors

  	
  19

  
	
  12.11

  	
   

  	
  Compensation
  of Members

  	
  19

  
	
  12.12

  	
   

  	
  Expense
  Reimbursement

  	
  19

  
	
  12.13

  	
   

  	
  Indemnification

  	
  19

  
	
  Section 13.

  	
   

  	
  Contractual
  Liability; Trust:

  	
  20

  
	
  13.1

  	
   

  	
  Contractual
  Liability

  	
  20

  
	
  13.2

  	
   

  	
  Trust

  	
  20

  
	
  Section 14.

  	
   

  	
  Allocation
  of Responsibilities:

  	
  21

  
	
  14.1

  	
   

  	
  Board

  	
  21

  
	
  14.2

  	
   

  	
  Committee

  	
  21

  
	
  14.3

  	
   

  	
  Plan
  Administrator

  	
  21

  
	
  Section 15.

  	
   

  	
  Benefits Not
  Assignable; Facility of Payments:

  	
  21

  
	
  15.1

  	
   

  	
  Benefits not
  Assignable

  	
  21

  
	
  15.2

  	
   

  	
  Payments to
  Minors and Others

  	
  22

  
	
  Section 16.

  	
   

  	
  Beneficiary:

  	
  22

  
	
  Section 17.

  	
   

  	
  Amendment
  and Termination of Plan:

  	
  23

  
	
  Section 18.

  	
   

  	
  Communication
  to Participants:

  	
  23

  
	
  Section 19.

  	
   

  	
  Claims
  Procedure:

  	
  24

  
	
  19.1

  	
   

  	
  Filing of a
  Claim for Benefits

  	
  24

  
	
  19.2

  	
   

  	
  Notification
  to Claimant of Decision

  	
  24

  
	
  19.3

  	
   

  	
  Procedure
  for Review

  	
  25

  
	
  19.4

  	
   

  	
  Decision on
  Review

  	
  25

  
	
  19.5

  	
   

  	
  Action by
  Authorized Representative of Claimant

  	
  25

  
	
  Section 20.

  	
   

  	
  Miscellaneous
  Provisions:

  	
  26

  
	
  20.1

  	
   

  	
  Set off

  	
  26

  
	
  20.2

  	
   

  	
  Notices

  	
  26

  
	
  20.3

  	
   

  	
  Lost
  Distributees

  	
  26

  
	
  20.4

  	
   

  	
  Reliance on
  Data

  	
  27

  
	
  20.5

  	
   

  	
  Receipt and
  Release for Payments

  	
  27

  
	
  20.6

  	
   

  	
  Headings

  	
  27

  
	
  20.7

  	
   

  	
  Continuation
  of Employment

  	
  27

  
	
  20.8

  	
   

  	
  Merger or
  Consolidation; Assumption of Plan

  	
  28

  
	
  20.9

  	
   

  	
  Construction

  	
  28

  

 

iii

 

	
  

  	
  THE EXECUTIVE

  NONQUALIFIED “EXCESS” PLANTM

  	
   

  

 

Section 1.                  Purpose:

 

By execution
of the Adoption Agreement, the Employer has adopted the Plan set forth herein
to provide a means by which certain management Employees and Independent Contractors
of the Employer may elect to defer receipt of current Compensation from
the Employer in order to provide Retirement and other benefits on behalf of
such Employees and Independent Contractors of the Employer, as selected in the
Adoption Agreement. The Plan is not intended to be a tax-qualified retirement
plan under Section 401(a) of the Internal Revenue Code (the “Code”).
The Plan is intended to be an unfunded plan maintained primarily for the purpose
of providing deferred compensation benefits for a select group of management or
highly compensated employees under Sections 201(2), 301(a)(3) and 401(a)(1) of
the Employee Retirement Income Security Act of 1974 and independent
contractors.

 

Section 2.                  Definitions:

 

As used in the Plan, including this Section 2, references to one
gender shall include the other and, unless otherwise indicated by the context:

 

2.1                               “Accrued
Benefit” means, with respect to each Participant, the balance credited to
his Deferred Compensation Account.

 

2.2                               “Active
Participant” means, with respect to any day or date, a Participant who is
in Service on such day or date; provided, that a Participant shall cease to be
an Active Participant immediately upon a determination by the Committee that
the Participant has ceased to be an Employee or Independent Contractor, or that
the Participant no longer meets the eligibility requirements of the Plan.

 

 

2.3                               “Adoption
Agreement” means the written agreement pursuant to which the Employer
adopts the Plan. The Adoption Agreement is a part of the Plan as applied
to the Employer.

 

2.4                               “Beneficiary”
means the person, persons, entity or entities designated or determined
pursuant to the provisions of Section 16 of the Plan.

 

2.5                               “Board”
means the Board of Directors of the Employer, if the Employer is a
corporation. If the Employer is not a corporation, “Board” shall mean the
Employer.

 

2.6                               “Committee”
means the administrative committee provided for in Section 12.

 

2.7                               “Compensation”
shall have the meaning designated in the Adoption Agreement.

 

2.8                               “Crediting
Date” means the date designated in the Adoption Agreement for crediting the
amount of any Salary Deferral Credits to the Deferred Compensation Account of a
Participant. Employer Credits may be credited to the Deferred Compensation
Account of a Participant on any day that securities are traded on a national securities
exchange.

 

2.9                               “Deferred
Compensation Account” means the sum of the amounts credited to the
Retirement Account, the In-Service Account and the Education Account of each Participant,
as applicable. The Deferred Compensation Account of each Participant shall be adjusted
as provided in Section 9.

 

2.10                        “Disability”
means disability as defined in the Adoption Agreement.

 

2

 

2.11                        “Education
Account” means a separate account to be kept for each Participant that can
be divided into one or more Education Subaccounts as described in Section 6.4.
The Education Account shall be established, adjusted for payments, credited
with Salary Deferral Credits, and credited or debited for deemed investment
gains or losses in the same manner and at the same time as such adjustments are
made to the Deferred Compensation Account under Section 9 and in
accordance with the rules and elections in effect under Section 9.

 

2.12                        “Education
Subaccount” means the subaccount of the Education Account which is
maintained with respect to an Education Recipient. If the Participant does not designate
more than one Education Recipient, the Education Account shall be the Education
Subaccount with respect to such Education Recipient.

 

2.13                        “Education
Recipient” means the individual designated by the Participant in the Salary
Deferral Agreement with respect to whom the Participant will create an Education
Subaccount.

 

2.14                        “Effective
Date” shall be the date designated in the Adoption Agreement as of which
the Plan first becomes effective.

 

2.15                        “Employee”
means an individual in the Service of the Employer if the relationship
between the individual and the Employer is the legal relationship of employer
and employee and if the individual is a highly compensated or management
employee of the Employer. An individual shall cease to be an Employee upon the
Employee’s termination of Service.

 

3

 

2.16                        “Employer”
means the Employer identified in the Adoption Agreement, and any
Participating Employer which adopts this Plan. The Employer may be a
corporation, a limited liability company, a partnership or sole proprietorship.
All references herein to the Employer shall be applied separately to each such
Employer as if the Plan were solely the Plan of that Employer.

 

2.17                        “Employer
Credits” means the amounts credited to the Participant’s Retirement Account
by the Employer pursuant to the provisions of Section 4.2.

 

2.18                        “Independent
Contractor” means an individual in the Service of the Employer if the
relationship between the individual and the Employer is not the legal relationship
of employer and employee. An individual shall cease to be an Independent Contractor
upon the termination of the Independent Contractor’s Service. An Independent Contractor
shall include a director of the Employer who is not an Employee.

 

2.19                        “In-Service
Account” means a separate account to be kept for each Participant, as
described in Section 6.1. The In-Service Account shall be established,
adjusted for payments, credited with Salary Deferral Credits, and credited or
debited for deemed investment gains or losses in the same manner and at the
same time as such adjustments are made to the Deferred Compensation Account
under Section 9 and in accordance with the rules and elections in
effect under Section 9.

 

2.20                        “Normal
Retirement Date” of a Participant is designated in the Adoption Agreement.
The “Retirement Date” of a Participant means the date the Participant attains
his Retirement Age.

 

4

 

2.21                        “Participant”
means with respect to any Plan Year an Employee or Independent Contractor
who has been designated by the Committee as a Participant and who has entered
the Plan or who has an Accrued Benefit under the Plan.

 

2.22                        “Participating
Employer” means any trade or business (whether or not incorporated) which
adopts this Plan with the consent of the Employer identified in the Adoption Agreement.

 

2.23                        “Plan”
means The Executive Nonqualified Excess PlanTM, as herein set out or as duly
amended. The name of the Plan as applied to the Employer shall be designated in
the Adoption Agreement.

 

2.24                        “Plan
Administrator” means the person designated in the Adoption Agreement. If
the Plan Administrator designated in the Adoption Agreement is unable to serve,
the Employer shall be the Plan Administrator.

 

2.25                        “Plan
Year” means the twelve-month period ending on the last day of the month
designated in the Adoption Agreement.

 

2.26                        “Qualifying
Distribution Event” means the Participant’s Retirement or the termination
of Participant’s Service with the Employer for any reason, including as a
result of his death or Disability, as described in Section 5.

 

2.27                        “Retire”
or “Retirement” means Retirement within the meaning of Section 5.4.

 

2.28                        “Retirement
Account” means a separate account to be kept for each Participant, as
described in Section 4.3. The Retirement Account shall be established,
adjusted for payments, credited with Salary Deferral Credits and Employer Credits,
and credited or debited for deemed investment gains or losses in the same
manner and at the same time as such

 

5

 

adjustments
are made to the Deferred Compensation Account under Section 9 and in
accordance with the rules and elections in effect under Section 9.

 

2.29                        “Salary
Deferral Agreement” means a written agreement entered into between a
Participant and the Employer pursuant to the provisions of Section 4.1

 

2.30                        “Salary
Deferral Credits” means the amounts credited to the Participant’s Deferred
Compensation Account by the Employer pursuant to the provisions of Section 4.1.

 

2.31                        “Service”
means employment by the Employer as an Employee. If the Participant is an
Independent Contractor, “Service” shall mean the period during which the contractual
relationship exists between the Employer and the Participant.

 

2.32                        “Sponsor”
means Executive Benefit Services, Inc.

 

2.33                        “Spouse”
or “Surviving Spouse” means,
except as otherwise provided in the Plan, the legally married spouse or
surviving spouse of a Participant.

 

2.34                        “Trust”
means the trust fund established pursuant to Section 13.2, if designated
by the Employer in the Adoption Agreement.

 

2.35                        “Trustee”
means the trustee, if any, named in the agreement establishing the Trust
and such successor or additional trustee as may be named pursuant to the
terms of the agreement establishing the Trust.

 

2.36                        “Years
of Service” means each Plan Year of Service completed by the Participant.
For vesting purposes, Years of Service shall be calculated from the date
designated in the Adoption Agreement.

 

6

 

Section 3.                  Participation:

 

The Committee in its discretion shall designate each Employee or
Independent Contractor who is eligible to participate in the Plan. An Employee
or Independent Contractor designated by the Committee as a Participant who has
not otherwise entered the Plan shall enter the Plan and become a Participant as
of the date determined by the Committee. A Participant who separates from
Service with the Employer and who later returns to Service will not be an Active
Participant under the Plan except upon satisfaction of such terms and
conditions as the Committee shall establish upon the Participant’s return to Service,
whether or not the Participant shall have an Accrued Benefit remaining under
the Plan on the date of his return to Service.

 

Section 4.                  Credits to Deferred Compensation
Account:

 

4.1                               Salary
Deferral Credits. To the extent provided in the Adoption Agreement, each
Active Participant may elect, by entering into a Salary Deferral Agreement
with the Employer, to defer his Compensation from the Employer by a dollar
amount or percentage specified in the Salary Deferral Agreement. The amount of
the Participant’s Salary Deferral Credit shall be credited by the Employer to
the Deferred Compensation Account maintained for the Participant pursuant to Section 9.
The following special provisions shall apply with respect to the Salary
Deferral Credits of a Participant:

 

4.1.1                        The
Employer shall credit to the Participant’s Deferred Compensation Account on
each Crediting Date an amount equal to the total Salary Deferral Credit for the
period ending on such Crediting Date.

 

4.1.2                        An
election pursuant to Section 4.1 shall be made by the Participant by
executing and delivering a Salary Deferral Agreement to the Committee. The
Salary Deferral Agreement shall become effective with respect to such
Participant as of the first full payroll period commencing on or immediately following
the first day of the Plan Year which occurs after the date such Salary Deferral
Agreement is received by the Committee; provided, that a Participant who first
becomes a Participant in the Plan during a Plan Year may enter into a
Salary Deferral Agreement to be effective as of the first payroll period next
following the date he enters the Plan. A Participant’s election shall continue

 

7

 

in effect, unless earlier modified by the Participant, until the Service
of the Participant is terminated, or, if earlier, until the Participant ceases
to be an Active Participant under the Plan.

 

4.1.3        A
Participant may unilaterally modify a Salary Deferral Agreement (either to
increase or decrease the portion of his future Compensation which is subject to
salary deferral within the percentage limits set forth in Section 4.1 of the
Adoption Agreement) by providing a written modification of the Salary Deferral
Agreement to the Employer. The modification shall become effective as of the
first full payroll period commencing on or immediately following the first day
of the Plan Year which occurs after the date such written modification is received
by the Committee. The Participant may terminate the Salary Deferral Agreement
effective as of the date designated in the Adoption Agreement.

 

4.1.4        The
Committee may from time to time establish policies or rules governing
the manner in which Salary Deferral Credits may be made.

 

4.2                               Employer
Credits. If designated by the Employer in the Adoption Agreement, the
Employer shall cause the Committee to credit to the Deferred Compensation Account
of each Active Participant an Employer Credit as determined in accordance with
the Adoption Agreement.

 

4.3                               Deferred
Compensation Account. Unless otherwise designated by the Participant in the
Salary Deferral Agreement, all Salary Deferral Credits made pursuant to Section 4.1
shall be credited to the Retirement Account of the Participant. All Employer
Credits made pursuant to Section 4.2 shall be made to the Retirement
Account of the Participant. The Retirement Account is a part of the
Deferred Compensation Account of a Participant and shall be distributed upon a
Qualifying Distribution Event.

 

Section 5.                  Qualifying Distribution Events:

 

5.1                               Death
of a Participant. If a Participant dies while in Service, the Employer
shall pay a benefit to the Participant’s Beneficiary in the amount designated
in the Adoption Agreement. Payment of such benefit shall be made by the
Employer pursuant to Section 7. If a Participant dies following his
Retirement or termination of Service for any

 

8

 

reason,
including Disability, and before all payments to him under the Plan have been
made, the balance of the Participant’s vested Accrued Benefit shall be paid by
the Employer to the Participant’s Beneficiary pursuant to Section 7, and
such balance shall be determined as of the commencement date of the payments.

 

5.2                               Disability
of a Participant. If a Participant suffers a Disability while in Service
prior to his Normal Retirement Date, he shall terminate Service with the
Employer as of the date of the establishment of his Disability, whereupon he
shall commence receiving payment of his vested Accrued Benefit, determined as
of the commencement date of the payments. Such benefit shall be paid by the
Employer as provided in Section 7.

 

5.3                               Termination
of Service. If the Service of a Participant with the Employer shall be
terminated for any reason other than Retirement, Disability or death, his vested
Accrued Benefit shall be paid to him by the Employer as provided in Section 7,
and such Accrued Benefit shall be determined as of the commencement date of the
payments. If a Participant’s Accrued Benefit is not fully vested at his termination
of employment, he shall forfeit that portion of his Accrued Benefit that is not
fully vested. If he subsequently returns to Service with the Employer, he shall
be treated as a new Participant for purposes of determining the vested portion
of his Accrued Benefit.

 

5.4                               Retirement.
A Participant who is in Service on or after his Normal Retirement Date
shall be eligible to Retire and commence receiving payment of his Accrued Benefit.
Payment of such benefit shall be made by the Employer pursuant to Section 7.

 

Section 6.                  Distributions While in Service:

 

6.1                               In-Service
Withdrawals. If the Employer designates in the Adoption Agreement that
in-service withdrawals are permitted under the Plan, a Participant may elect
in the Salary Deferral Agreement to withdraw a designated amount from his
Deferred

 

9

 

Compensation
Account at the specified time or times designated by the Participant in the
Salary Deferral Agreement, and the Participant’s In-Service Account shall be
credited with the amount designated for in-service withdrawals. The following
special provisions shall apply with respect to the In-Service Account:

 

6.1.1                        Notwithstanding
any provision in this Section 6 to the contrary, if Participant incurs a
Qualifying Distribution Event prior to the date on which the entire balance of
his In-Service Account has been distributed to him, then the balance in the
In-Service Account on the date of the Qualifying Distribution Event shall be
distributed to him in the same manner and at the same time as his Deferred
Compensation Account is distributed to him under Section 7 and in accordance
with the rules and elections in effect under Section 7.

 

6.1.2                        If
permitted by the Employer in the Adoption Agreement, a Participant may defer
the date of any withdrawal from the In-Service Account by giving notice of the
new withdrawal date to the Committee within the time limits specified in the
Adoption Agreement.

 

6.2                               Financial
Hardship Withdrawals. If the Employer designates in the Adoption Agreement
that financial hardship withdrawals are permitted under the Plan, a distribution
of the Deferred Compensation Account may be made to a Participant on
account of financial hardship, subject to the following provisions:

 

6.2.1                        A
Participant may, at any time prior to his Retirement or termination of Service
for any reason, including Disability, make application to the Committee to
receive a distribution in a lump sum of all or a portion of the vested Accrued
Benefit credited to his Deferred Compensation Account (determined as of the
date the distribution, if any, is made under this Section 6.2) because of
an unforeseeable emergency that results in severe financial hardship to the
Participant. A distribution because of an unforeseeable emergency shall not exceed
the amount required to meet the immediate financial need created by the unforeseeable
emergency and not otherwise reasonably available from other resources of the
Participant. Examples of an unforeseeable emergency shall include but shall not
be limited to those financial needs arising on account of a sudden or
unexpected illness or accident of the Participant or of a dependent of the
Participant, loss of the Participant’s property due to casualty, or other
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant.

 

10

 

6.2.2                        The
Participant’s request for a distribution on account of financial hardship must
be made in writing to the Committee. The request must specify the nature of the
financial hardship, the total amount requested to be distributed from the
Deferred Compensation Account, and the total amount of the actual expense incurred
or to be incurred on account of financial hardship.

 

6.2.3                        If
a distribution under this Section 6.2 is approved by the Committee, such
distribution will be made as soon as practicable following the date it is
approved. The processing of the request shall be completed as soon as practicable
from the date on which the Committee receives the properly completed written
request for a distribution on account of a financial hardship. If a Participant’s
termination of Service occurs after a request is approved in accordance with
this Section 6.2.3, but prior to distribution of the full amount approved,
the approval of the request shall be automatically null and void and the benefits
which the Participant is entitled to receive under the Plan shall be distributed
in accordance with the applicable distribution provisions of the Plan. Only one
financial hardship distribution shall be made within any Plan Year.

 

6.2.4                        The
Committee may from time to time adopt additional policies or rules governing
the manner in which such distributions may be made so that the Plan may be
conveniently administered.

 

6.3                               “Haircut”
Withdrawals. If the Employer designates in the Adoption Agreement that “haircut”
withdrawals are permitted under the Plan, a Participant in Service may at
his option make one or more withdrawals from his Deferred Compensation Account
by written request to the Committee; provided, however, that a Participant who
requests a withdrawal under this Section 6.3 shall incur a penalty (the “haircut”)
equal to a percentage (not less than 10%), as designated by the Employer in the
Adoption Agreement, of the amount withdrawn, and this penalty shall be
forfeited from the Deferred Compensation Account of the Participant notwithstanding
the provisions of Section 8.

 

6.4                               Education
Withdrawals. If the Employer designates in the Adoption Agreement that
education withdrawals are permitted under the Plan, a Participant may elect
in the Salary Deferral Agreement for a designated percentage or dollar amount
of the Salary Deferral Credits to be credited to the Education Account of the
Education Recipient designated by the Participant. If the Participant
designates more than one Education Recipient, the

 

11

 

Education
Account shall be divided into Education Subaccounts for each Education
Recipient, and the Participant may designate in the Salary Deferral
Agreement the percentage or dollar amount of each Salary Deferral Credit to be
credited to each Education Subaccount. In the absence of a clear designation,
all credits made to the Education Account shall be equally allocated to each
Education Subaccount. As soon as practicable after the date designated by the Participant
in the Salary Deferral Agreement, the Employer shall pay to the Participant the
balance in the Education Subaccount with respect to such Education Recipient in
the manner designated by the Participant in the Salary Deferral Agreement and
permitted by the Employer in the Adoption Agreement. The following special
provisions shall apply with respect to the Education Account:

 

6.4.1                        Notwithstanding
any provision in this Section 6 to the contrary, if a Participant incurs a
Qualifying Distribution Event prior to the date on which the entire balance of
the Education Account has been distributed to him, then the balance in the Education
Account on the date of the Qualifying Distribution Event shall be distributed
to him in the same manner and at the same time as his Deferred Compensation
Account is distributed to him under Section 7 and in accordance with the rules and
elections in effect under Section 7.

 

6.4.2                        If
permitted by the Employer in the Adoption Agreement, a Participant may defer
the date of any withdrawal from the Education Account by giving notice of the
new withdrawal date to the Committee within the time limits specified in the
Adoption Agreement.

 

Section 7.                  Qualifying Distribution Events
Payment Options:

 

7.1                               Payment
Options. The Employer shall designate in the Adoption Agreement the payment
options available upon a Qualifying Distribution Event. Upon a Participant’s
entry into the Plan, the Participant shall elect among these designated payment
options the method under which his vested Accrued Benefit or, in the event of
his death, any benefit payable as a result, will be distributed; provided,
however, that if permitted by the Employer in the Adoption Agreement, a
Participant may change the method of payment by

 

12

 

giving notice
of the new payment method to the Committee within the time limits specified in the
Adoption Agreement. In the event the Participant fails to make a valid
designation of the payment method, the distribution will be made in a single
lump sum payment. Notwithstanding any election made by the Participant, the
vested Accrued Benefit of the Participant will be distributed in a single lump
sum payment if the amount of such benefit does not exceed the dollar limit
specified by the Employer in the Adoption Agreement, if applicable.

 

7.2                               Prepayment.
Notwithstanding any other provisions of this Plan, if a Participant or any
other person (a “recipient”) is entitled to receive payments under the Plan,
the Committee in its sole discretion may direct the Employer to prepay all
or any part of the payments remaining to be made to or on behalf of the
recipient, or to shorten the payment period. The amount of such prepayment
shall be in full satisfaction of the Employer’s obligations hereunder to the
recipient and to all persons claiming under or through the recipient with
respect to the payments being prepaid. In the event of a partial prepayment,
the Committee shall designate which installments are being prepaid and, if
applicable, the accounts of the Participant from which such prepayments shall
be debited. The Committee’s determinations under this Section 7.2 shall be
final and conclusive upon all parties claiming benefits under this Plan.

 

Section 8.                  Vesting:

 

A Participant shall be fully vested in the portion of his Deferred
Compensation Account attributable to Salary Deferral Credits, and all income,
gains and losses attributable thereto. A Participant shall become fully vested
in the portion of his Deferred Compensation Account attributable to Employer
Credits, and income, gains and losses attributable thereto, in accordance with
the vesting schedule and provisions designated by the Employer in the
Adoption Agreement.

 

13

 

Section 9.                  Accounts; Deemed Investment;
Adjustments to Account:

 

9.1                               Accounts.
The Committee shall establish a book reserve account, entitled the “Deferred
Compensation Account,” on behalf of each Participant. The Committee shall also establish
a Retirement Account, In-Service Account and Education Account as a part of
the Deferred Compensation Account of each Participant, if applicable. The
amount credited to the Deferred Compensation Account shall be adjusted pursuant
to the provisions of Section 9.3.

 

9.2                               Deemed
Investments. The Deferred Compensation Account of a Participant shall be
credited with an investment return determined as if the account were invested in
one or more investment funds made available by the Committee. The Participant
shall elect the investment funds in which his Deferred Compensation Account
shall be deemed to be invested. Such election shall be made in the manner
prescribed by the Committee and shall take effect upon the entry of the
Participant into the Plan. The investment election of the Participant shall
remain in effect until a new election is made by the Participant. In the event
the Participant fails for any reason to make an effective election of the
investment return to be credited to his account, the investment return shall be
determined by the Committee.

 

9.3                               Adjustments
to Deferred Compensation Account. With respect to each Participant who has
a Deferred Compensation Account under the Plan, the amount credited to such
account shall be adjusted by the following debits and credits, at the times and
in the order stated:

 

9.3.1                        The
Deferred Compensation Account shall be debited each business day with the total
amount of any payments made from such account since the last preceding business
day to him or for his benefit.

 

9.3.2                        The
Deferred Compensation Account shall be credited on each Crediting Date with the
total amount of any Salary Deferral Credits and Employer Credits to such
account since the last preceding Crediting Date.

 

14

 

9.3.3                        The
Deferred Compensation Account shall be credited or debited on each day
securities are traded on a national stock exchange with the amount of deemed
investment gain or loss resulting from the performance of the investment funds
elected by the Participant in accordance with Section 9.2. The amount of such
deemed investment gain or loss shall be determined by the Committee and such
determination shall be final and conclusive upon all concerned.

 

Section 10.           Benefit Exchange:

 

If elected by the Employer in the Adoption Agreement, the Employer and
the Participant may enter into an agreement under which the Participant’s
vested Accrued Benefit may be exchanged for another nonqualified benefit
in accordance with rules established by the Committee.

 

Section 11.           Transfer to Qualified Plan:

 

If elected by the Employer in the Adoption Agreement and directed by
the Participant in the Salary Deferral Agreement, the Employer shall transfer
amounts from the Deferred Compensation Account of the Participant to the
account of the Participant under a tax-qualified retirement plan maintained by
the Employer and identified in the Adoption Agreement (the “Qualified Plan”) in
accordance with the following procedures:

 

11.1                        Maximize
Qualified Plan Deferrals. As soon as administratively feasible after the
end of each Plan Year, the Employer shall determine the amount of Salary Deferral
Credits made to the Deferred Compensation Account of the Participant for the
Plan Year (excluding the amount of deemed investment gain or loss with respect
thereto) which is eligible for transfer to the Qualified Plan. Such amount
shall be determined so as to permit the maximum allocation to the account of
the Participant under the Qualified Plan for the Plan Year without exceeding
the limitations applicable to the Qualified Plan (including by way of illustration
and not limitation, the limitations under Sections 402(g) and 401(k)(3) of
the Code, and any successors thereto).

 

15

 

11.2                        Maximize
Qualified Plan Match. As soon as administratively feasible after the end of
each Plan Year, the Employer shall determine the amount of any Employer Credits
made as a matching amount to the Deferred Compensation Account of the
Participant for the Plan Year (excluding the amount of deemed investment gain
or loss with respect thereto) which is eligible for transfer to the Qualified
Plan. Such amount shall be determined so as to permit the maximum allocation to
the account of the Participant under the Qualified Plan for the Plan Year
without exceeding the limitations applicable to the Qualified Plan (including
by way of illustration and not limitation, the limitation under Section 401(m)(2) of
the Code, and any successors thereto).

 

11.3                        Transfer
Deferral to Qualified Plan. No later than two and one-half months following
the end of the Plan Year, the Employer shall debit the amount determined under Section 11.1
from the Deferred Compensation Account of the Participant. If the Participant
has directed in the Salary Deferral Agreement that such transfer be made, the Employer
shall allocate such amount to the account of the Participant under the
Qualified Plan. If the Participant has not directed such transfer, the Employer
shall distribute such amount from the Deferred Compensation Account to the
Participant.

 

11.4                        Credit
Match to Qualified Plan. No later than two and one-half months following
the end of the Plan Year, the Employer shall debit the amount determined under Section 11.2
from the Deferred Compensation Account of the Participant. If the transfer described
in Section 11.3 is made, the Employer shall allocate the amount determined
under Section 11.2 to the account of the Participant under the Qualified
Plan. If such transfer is not made and the Participant receives a distribution
of the amount determined under Section 11.1, the Participant shall forfeit
the amount determined under Section 11.2.

 

16

 

11.5                        Compliance
with Qualified Plan. In its sole discretion, the Employer may make
multiple transfers or distributions under this Section 11 during the Plan
Year; provided, however, that no transfers shall be made under this Section 11
if precluded by the terms of the Qualified Plan.

 

Section 12.           Administration by Committee:

 

12.1                        Membership
of Committee. The Committee shall consist of at least three individuals who
shall be appointed by the Board to serve at the pleasure of the Board. Any member
of the Committee may resign, and his successor, if any, shall be appointed
by the Board. The Committee shall be responsible for the general administration
and interpretation of the Plan and for carrying out its provisions, except to
the extent all or any of such obligations are specifically imposed on the
Board.

 

12.2                        Committee
Officers; Subcommittee. The members of the Committee may elect
Chairman and may elect an acting Chairman. They may also elect a
Secretary and may elect an acting Secretary, either of whom may be
but need not be a member of the Committee. The Committee may appoint from
its membership such subcommittees with such powers as the Committee shall
determine, and may authorize one or more of its members or any agent to
execute or deliver any instruments or to make any payment on behalf of the
Committee.

 

12.3                        Committee
Meetings. The Committee shall hold such meetings upon such notice, at such
places and at such intervals as it may from time to time determine. Notice
of meetings shall not be required if notice is waived in writing by all the
members of the Committee at the time in office, or if all such members are
present at the meeting.

 

17

 

12.4                        Transaction
of Business. A majority of the members of the Committee at the time in
office shall constitute a quorum for the transaction of business. All
resolutions or other actions taken by the Committee at any meeting shall be by
vote of a majority of those present at any such meeting and entitled to vote.
Resolutions may be adopted or other action taken without a meeting upon
written consent thereto signed by all of the members of the Committee.

 

12.5                        Committee
Records. The Committee shall maintain full and complete records of its
deliberations and decisions. The minutes of its proceedings shall be conclusive
proof of the facts of the operation of the Plan.

 

12.6                        Establishment
of Rules. Subject to the limitations of the Plan, the Committee may from
time to time establish rules or by-laws for the administration of the Plan
and the transaction of its business.

 

12.7                        Conflicts
of Interest. No individual member of the Committee shall have any right to
vote or decide upon any matter relating solely to himself or to any of his
rights or benefits under the Plan (except that such member may sign
unanimous written consent to resolutions adopted or other action taken without
a meeting), except relating to the terms of his Salary Deferral Agreement.

 

12.8                        Correction
of Errors. The Committee may correct errors and, so far as practicable,
may adjust any benefit or credit or payment accordingly. The Committee may in
its discretion waive any notice requirements in the Plan; provided, that a
waiver of notice in one or more cases shall not be deemed to constitute a
waiver of notice in any other case. With respect to any power or authority
which the Committee has discretion to exercise under the Plan, such discretion
shall be exercised in a nondiscriminatory manner.

 

18

 

12.9                        Authority
to Interpret Plan. Subject to the claims procedure set forth in Section 18
the Plan Administrator and the Committee shall have the duty and discretionary authority
to interpret and construe the provisions of the Plan and to decide any dispute
which may arise regarding the rights of Participants hereunder, including
the discretionary authority to construe the Plan and to make determinations as
to eligibility and benefits under the Plan. Determinations by the Plan Administrator
and the Committee shall apply uniformly to all persons similarly situated and
shall be binding and conclusive upon all interested persons.

 

12.10                 Third Party Advisors. The
Committee may engage an attorney, accountant, actuary or any other technical
advisor on matters regarding the operation of the Plan and to perform such
other duties as shall be required in connection therewith, and may employ such
clerical and related personnel as the Committee shall deem requisite or
desirable in carrying out the provisions of the Plan. The Committee shall from
time to time, but no less frequently than annually, review the financial
condition of the Plan and determine the financial and liquidity needs of the
Plan. The Committee shall communicate such needs to the Employer so that its policies
may be appropriately coordinated to meet such needs.

 

12.11                 Compensation of Members. No fee or
compensation shall be paid to any member of the Committee for his Service as
such.

 

12.12                 Expense Reimbursement. The
Committee shall be entitled to reimbursement by the Employer for its reasonable
expenses properly and actually incurred in the performance of its duties in the
administration of the Plan.

 

12.13                 Indemnification. No member of the
Committee shall be personally liable by reason of any contract or other
instrument executed by him or on his behalf as a member of the Committee nor
for any mistake of judgment made in good faith, and the Employer shall

 

19

 

indemnify and
hold harmless, directly from its own assets (including the proceeds of any insurance
policy the premiums for which are paid from the Employer’s own assets), each member
of the Committee and each other officer, employee, or director of the Employer
to whom any duty or power relating to the administration or interpretation of
the Plan may be delegated or allocated, against any unreimbursed or
uninsured cost or expense (including any sum paid in settlement of a claim with
the prior written approval of the Board) arising out of any act or omission to
act in connection with the Plan unless arising out of such person’s own fraud, bad
faith, willful misconduct or gross negligence.

 

Section 13.           Contractual Liability; Trust:

 

13.1                        Contractual
Liability. The obligation of the Employer to make payments hereunder shall
constitute a contractual liability of the Employer to the Participant. Such payments
shall be made from the general funds of the Employer, and the Employer shall
not be required to establish or maintain any special or separate fund, or
otherwise to segregate assets to assure that such payments shall be made, and
the Participant shall not have any interest in any particular assets of the
Employer by reason of its obligations hereunder. To the extent that any person
acquires a right to receive payment from the Employer, such right shall be no
greater than the right of an unsecured creditor of the Employer.

 

13.2                        Trust.
If so designated in Section 2.34 of the Adoption Agreement, the Employer
may establish a Trust with the Trustee, pursuant to such terms and
conditions as are set forth in the Trust Agreement. The Trust, if and when
established, is intended to be treated as a grantor trust for purposes of the
Code. The establishment of the Trust is not intended to cause Participants to
realize current income on amounts contributed thereto, and the Trust shall be
so interpreted and administered.

 

20

 

Section 14.           Allocation of Responsibilities:

 

The persons responsible for the Plan and the duties and
responsibilities allocated to each are as follows:

 

14.1                        Board.

 

(i)                                     To
amend the Plan;

 

(ii)                                  To
appoint and remove members of the Committee; and

 

(iii)                               To
terminate the Plan.

 

14.2                        Committee.

 

(i)                                     To
designate Participants;

 

(ii)                                  To
interpret the provisions of the Plan and to determine the rights of the
Participants under the Plan, except to the extent otherwise provided in Section 19
relating to claims procedure;

 

(iii)                               To
administer the Plan in accordance with its terms, except to the extent powers
to administer the Plan are specifically delegated to another person or persons
as provided in the Plan;

 

(iv)                              To
account for the Accrued Benefits of Participants; and

 

(v)                                 To
direct the Employer in the payment of benefits.

 

14.3                        Plan
Administrator.

 

(i)                                     To
file such reports as may be required with the United States Department of
Labor, the Internal Revenue Service and any other government agency to which
reports may be required to be submitted from time to time; and

 

(ii)                                  To
administer the claims procedure to the extent provided in Section 19.

 

Section 15.           Benefits Not Assignable; Facility of
Payments:

 

15.1                        Benefits
not Assignable. No portion of any benefit credited or paid under the Plan
with respect to any Participant shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any
attempt so to anticipate, alienate, sell, transfer, assign, pledge, encumber or
charge the same shall be void, nor shall any

 

21

 

portion of
such benefit be in any manner payable to any assignee, receiver or any one
trustee, or be liable for his debts, contracts, liabilities, engagements or
torts. Notwithstanding the foregoing, in the event that all or any portion of
the benefit of a Participant is transferred to the former spouse of the
Participant incident to a divorce, the Committee shall maintain such amount for
the benefit of the former spouse until distributed in the manner required by an
order of any court having jurisdiction over the divorce, and the former spouse
shall be entitled to the same rights as the Participant with respect to such
benefit.

 

15.2                        Payments
to Minors and Others. If any individual entitled to receive a payment under
the Plan shall be physically, mentally or legally incapable of receiving or acknowledging
receipt of such payment, the Committee, upon the receipt of satisfactory evidence
of his incapacity and satisfactory evidence that another person or institution
is maintaining him and that no guardian or committee has been appointed for
him, may cause any payment otherwise payable to him to be made to such
person or institution so maintaining him. Payment to such person or institution
shall be in full satisfaction of all claims by or through the Participant to
the extent of the amount thereof.

 

Section 16.           Beneficiary:

 

The Participant’s Beneficiary shall be the person or persons designated
by the Participant on the Beneficiary designation form provided by and
filed with the Committee or its designee. If the Participant does not designate
a Beneficiary, the Beneficiary shall be his Surviving Spouse. If the
Participant does not designate a Beneficiary and has no Surviving Spouse, the
Beneficiary shall be the Participant’s estate. The designation of a Beneficiary
may be changed or revoked only by filing a new Beneficiary designation form with
the Committee or its designee. If a Beneficiary (the “primary Beneficiary”) is
receiving or is entitled to receive payments under the Plan and dies before
receiving all of the payments due him, the balance to

 

22

 

which he is
entitled shall be paid to the contingent Beneficiary, if any, named in the
Participant’s current Beneficiary designation form. If there is no contingent
Beneficiary, the balance shall be paid to the estate of the primary
Beneficiary. Any Beneficiary may disclaim all or any part of any
benefit to which such Beneficiary shall be entitled hereunder by filing a
written disclaimer with the Committee before payment of such benefit is to be
made. Such a disclaimer shall be made in a form satisfactory to the
Committee and shall be irrevocable when filed. Any benefit disclaimed shall be
payable from the Plan in the same manner as if the Beneficiary who filed the disclaimer
had died on the date of such filing.

 

Section 17.           Amendment and Termination of Plan:

 

The Board may amend any provision of the Plan or terminate the
Plan at any time; provided, that in no event shall such amendment or
termination reduce any Participant’s Accrued Benefit as of the date of such
amendment or termination, nor shall any such amendment affect the terms of the
Plan relating to the payment of such Accrued Benefit.

 

Notwithstanding the foregoing, the Plan shall be terminated upon the
occurrence of one or more of the events designated in the Adoption Agreement.
Upon the occurrence of a termination event, the Accrued Benefit of each
Participant may become fully vested and payable to the Participant in a
lump sum if designated by the Employer in the Adoption Agreement.

 

Section 18.           Communication to Participants:

 

The Employer shall make a copy of the Plan available for inspection by Participants
and their beneficiaries during reasonable hours at the principal office of the Employer.

 

23

 

Section 19.           Claims Procedure:

 

The following claims procedure shall apply with respect to the Plan:

 

19.1                        Filing
of a Claim for Benefits. If a Participant or Beneficiary (the “claimant”)
believes that he is entitled to benefits under the Plan which are not being
paid to him or which are not being accrued for his benefit, he shall file a
written claim therefor with the Plan Administrator. In the event the Plan
Administrator shall be the claimant, all actions which are required to be taken
by the Plan Administrator pursuant to this Section 19 shall be taken
instead by another member of the Committee designated by the Committee.

 

19.2                        Notification
to Claimant of Decision. Within 90 days after receipt of a claim by the
Plan Administrator (or within 180 days if special circumstances require an extension
of time), the Plan Administrator shall notify the claimant of his decision with
regard to the claim. In the event of such special circumstances requiring an
extension of time, there shall be furnished to the claimant prior to expiration
of the initial 90-day period written notice of the extension, which notice
shall set forth the special circumstances and the date by which the decision
shall be furnished. If such claim shall be wholly or partially denied, notice
thereof shall be in writing and worded in a manner calculated to be understood
by the claimant, and shall set forth: (i) the specific reason or reasons
for the denial; (ii) specific reference to pertinent provisions of the
Plan on which the denial is based; (iii) a description of any additional
material or information necessary for the claimant to perfect the claim and an
explanation of why such material or information is necessary; and (iv) an
explanation of the procedure for review of the denial and the time limits
applicable to such procedures, including a statement of the claimant’s right to
bring a civil action under ERISA following an adverse benefit determination on
review.

 

24

 

19.3                        Procedure
for Review. Within 60 days following receipt by the claimant of notice
denying his claim, in whole or in part, or, if such notice shall not be given,
within 60 days following the latest date on which such notice could have been
timely given, the claimant shall appeal denial of the claim by filing a written
application for review with the Committee. Following such request for review,
the Committee shall fully and fairly review the decision denying the claim.
Prior to the decision of the Committee, the claimant shall be given an opportunity
to review pertinent documents and to submit issues and comments in writing.

 

19.4                        Decision
on Review. The decision on review of a claim denied in whole or in part by
the Plan Administrator shall be made in the following manner:

 

19.4.1                  Within
60 days following receipt by the Committee of the request for review (or within
120 days if special circumstances require an extension of time), the Committee
shall notify the claimant in writing of its decision with regard to the claim.
In the event of such special circumstances requiring an extension of time,
written notice of the extension shall be furnished to the claimant prior to the
commencement of the extension. If the decision on review is not furnished in a
timely manner, the claim shall be deemed denied as of the close of the initial
60-day period (or the close of the extension period, if applicable).

 

19.4.2                  With
respect to a claim that is denied in whole or in part, the decision on review
shall set forth specific reasons for the decision, shall be written in a manner
calculated to be understood by the claimant, and shall cite specific references
to the pertinent Plan provisions on which the decision is based.

 

19.4.3                  The
decision of the Committee shall be final and conclusive.

 

19.5                        Action
by Authorized Representative of Claimant. All actions set forth in this Section 19
to be taken by the claimant may likewise be taken by a representative of
the claimant duly authorized by him to act in his behalf on such matters. The
Plan Administrator and the Committee may require such evidence as either may reasonably
deem necessary or advisable of the authority to act of any such representative.

 

25

 

Section 20.           Miscellaneous Provisions:

 

20.1                        Set
off. Notwithstanding any other provision of this Plan, the Employer may reduce
the amount of any payment otherwise payable to or on behalf of a Participant hereunder
by the amount of any loan, cash advance, extension of credit or other
obligation of the Participant to the Employer that is then due and payable, and
the Participant shall be deemed to have consented to such reduction.

 

20.2                        Notices.
Each Participant who is not in Service and each Beneficiary shall be
responsible for furnishing the Committee or its designee with his current
address for the mailing of notices and benefit payments. Any notice required or
permitted to be given to such Participant or Beneficiary shall be deemed given
if directed to such address and mailed by regular United States mail, first
class, postage prepaid. If any check mailed to such address is returned as
undeliverable to the addressee, mailing of checks will be suspended until the Participant
or Beneficiary furnishes the proper address. This provision shall not be
construed as requiring the mailing of any notice or notification otherwise
permitted to be given by posting or by other publication.

 

20.3                        Lost
Distributees. A benefit shall be deemed forfeited if the Plan Administrator
is unable to locate the Participant or Beneficiary to whom payment is due on or
before the fifth anniversary of the date payment is to be made or commence;
provided, that the deemed investment rate of return pursuant to Section 9.2
shall cease to be applied to the Participant’s account following the first
anniversary of such date; provided further, however, that such benefit shall be
reinstated if a valid claim is made by or on behalf of the Participant or Beneficiary
for all or part of the forfeited benefit.

 

26

 

20.4                        Reliance
on Data. The Employer, the Committee and the Plan Administrator shall have
the right to rely on any data provided by the Participant or by any Beneficiary.
Representations of such data shall be binding upon any party seeking to claim a
benefit through a Participant, and the Employer, the Committee and the Plan
Administrator shall have no obligation to inquire into the accuracy of any
representation made at any time by a Participant or Beneficiary.

 

20.5                        Receipt
and Release for Payments. Subject to the provisions of Section 20.1,
any payment made from the Plan to or with respect to any Participant or Beneficiary,
or pursuant to a disclaimer by a Beneficiary, shall, to the extent thereof, be
in full satisfaction of all claims hereunder against the Plan and the Employer
with respect to the Plan. The recipient of any payment from the Plan may be
required by the Committee, as a condition precedent to such payment, to execute
a receipt and release with respect thereto in such form as shall be
acceptable to the Committee.

 

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

 

20.7                        Continuation
of Employment. The establishment of the Plan shall not be construed as
conferring any legal or other rights upon any Employee or any persons for continuation
of employment, nor shall it interfere with the right of the Employer to
discharge any Employee or to deal with him without regard to the effect thereof
under the Plan.

 

27

 

20.8                        Merger
or Consolidation; Assumption of Plan. No employer-party to the Plan shall
consolidate or merge into or with another corporation or entity, or transfer
all or substantially all of its assets to another corporation, partnership,
trust or other entity (a “Successor Entity”) unless such Successor Entity shall
assume the rights, obligations and liabilities of the employer-party under the
Plan and upon such assumption, the Successor Entity shall become obligated to
perform the terms and conditions of the Plan. Nothing herein shall prohibit
the assumption of the obligations and liabilities of the Employer under the
Plan by any Successor Entity.

 

20.9                        Construction.
The Employer shall designate in the Adoption Agreement the state according
to whose laws the provisions of the Plan shall be construed and enforced, except
to the extent that such laws are superseded by ERISA.

 

28Exhibit 10.4

 

	
  

  	
  The Stock
  Yards Bank

  Director’s Deferred Compensation Plan

  	
  

  

 

ADOPTION AGREEMENT

 

THIS AGREEMENT is made the          
day of                                 ,
                   ,
by Stock Yards Bank and Trust Company (the
“Employer”), having its principal office at 1040
East Main Street, Louisville, KY 40206 and EXECUTIVE BENEFIT
SERVICES, INC. (the “Sponsor”), having its principal office at 4140 ParkLake Avenue, Suite 500,
Raleigh, NC 27612.

 

W I T N E S S E T H:

 

WHEREAS, the Sponsor
has established the Stock Yards Bank Director’s Deferred Compensation Plan (the
“Plan”); and

 

WHEREAS, the
Employer desires to adopt the Plan as an unfunded, nonqualified deferred
compensation plan: and

 

WHEREAS, the
Employer has been advised by the Sponsor to obtain legal and tax advice from
its professional advisors before adopting the Plan, and that the Sponsor
disclaims all liability for the legal and tax consequences which result from
the elections made by the Employer in this Adoption Agreement;

 

NOW, THEREFORE, the
Employer hereby adopts the Plan in accordance with the terms and conditions set
forth in this Adoption Agreement:

 

ARTICLE I

 

Terms used in this Adoption Agreement shall have the same meaning as in
the Plan, unless some other meaning is expressly herein set forth. The Employer
hereby represents and warrants that the Plan has been adopted by the Employer
upon proper authorization and the Employer hereby elects to adopt the Plan for
the benefit of its Participants as referred to in the Plan. By the execution of
this Adoption Agreement, the Employer hereby agrees to be bound by the terms of
the Plan.

 

This Adoption Agreement may only be used in connection with the
Stock Yards Bank Director’s Deferred Compensation Plan. The Sponsor will inform the
Employer of any amendments to the Plan or of the discontinuance or abandonment
of the Plan. For questions concerning the Plan, the Employer may call the
Sponsor at (919) 833-1042.

 

©       2003 Executive Benefit Services, Inc.

 

1

 

ARTICLE II

 

The Employer hereby makes the following designations or elections for
the purpose of the Plan [Section references below correspond to Section references
in the Plan]:

 

2.7                               Compensation:
The “Compensation” of a Participant shall mean all of each Participant’s [check
desired option(s)]:

 

	
  o

  	
   

  	
  (A)

  	
   

  	
  Compensation
  received as an Employee reportable in box 1, Wages, Tips and other
  Compensation, on Form W-2.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (B)

  	
   

  	
  Annual base
  salary.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (C)

  	
   

  	
  Annual
  bonus.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (D)

  	
   

  	
  Long term
  incentive plan compensation.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ý

  	
   

  	
  (E)

  	
   

  	
  Compensation
  received as an Independent Contractor reportable on Form 1099.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (F)

  	
   

  	
  Commissions.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (G)

  	
   

  	
  other
  [specify]:

  	
  .

  

 

Notwithstanding
the foregoing, Compensation ý SHALL o SHALL
NOT include Salary Deferral Credits under this Plan and amounts contributed by
the Participant pursuant to a Salary Deferral Agreement to another employee
benefit plan of the Employer which are not includible in the gross income of
the Employee under Section 125, 132(f)(4), 402(e)(3), 402(h) or 403(b) of
the Code.

 

2.8                               Crediting
Date: The Deferred Compensation Account of a Participant shall be credited
with the amount of any Salary Deferral Credits to such account at the time
designated below [check desired Crediting Date]:

 

	
  o

  	
   

  	
  (A)

  	
   

  	
  The last
  business day of each Plan Year.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (B)

  	
   

  	
  The last
  business day of each calendar quarter during the Plan Year.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (C)

  	
   

  	
  The last
  business day of each month during the Plan Year.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (D)

  	
   

  	
  The last
  business day of each payroll period during the Plan Year.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ý

  	
   

  	
  (E)

  	
   

  	
  Any business
  day on which Salary Deferral Credits are received by the Sponsor.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (F)

  	
   

  	
  Other
  [specify]:

  	
  .

  

 

2

 

2.10                        Disability:
The disability of a Participant shall be determined as follows:

 

	
  o

  	
   

  	
  (A)

  	
   

  	
  The Employee
  participating in the Plan shall be considered to be disabled when he has been
  determined to be disabled for the purposes of any long term disability
  insurance covering the Participant that is sponsored by the Employer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ý

  	
   

  	
  (B)

  	
   

  	
  The
  Participant shall be considered to be disabled when he has been determined to
  be disabled for purposes of the Federal Social Security Act.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (C)

  	
   

  	
  Other:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  .

  

 

2.14                        Effective
Date [check desired option]:

 

	
  o

  	
   

  	
  (A)

  	
   

  	
  This is a
  newly-established Plan, and the Effective Date of the Plan
  is                                           .

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ý

  	
   

  	
  (B)

  	
   

  	
  This is an
  amendment and restatement of a plan named Stock
  Yards Bank Director’s Deferred Compensation Plan with an effective
  date of March 1, 2001. The
  Effective Date of this amended and restated Plan is
                                         .
   This is amendment number 5.

  

 

2.20                        Normal
Retirement Date: The Normal Retirement Date of a Participant shall be:
[check desired option]:

 

	
  ý

  	
   

  	
  (A)

  	
   

  	
  The
  attainment of age 70.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (B)

  	
   

  	
  The later of
  age             or the
              
  anniversary of the participation commencement date. The participation
  commencement date is the first day of the first Plan Year in which the
  Participant commenced participation in the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (C)

  	
   

  	
  The
  completion of        Years of Service.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (D) 

  	
   

  	
  The
  completion of         Years of
  Service and attainment of age        .

  

 

3

 

2.22                        Participating
Employer(s):  As of the Effective
Date, the following Participating Employer(s) are parties to the Plan [list all
employer-parties, including the Employer]:

 

	
  Name of
  Employer

  	
   

  	
  Address

  	
   

  	
  Telephone No.

  	
   

  	
  EIN

  
	
  Stock Yards Bank and Trust

  Company

  	
   

  	
  1040 East Main Street

  	
   

  	
  (502) 625-9122

  	
   

  	
  61-0354170

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Louisville, KY 40206

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

2.23                        Plan:
The name of the Plan as applied to the Employer is:

 

Stock Yards Bank Director’s Deferred
Compensation Plan.

 

2.24                        Plan
Administrator: The Plan Administrator shall be [check desired option]:

 

	
  ý

  	
   

  	
  (A)

  	
   

  	
  Committee.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (B)

  	
   

  	
  Employer.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (C)

  	
   

  	
  Other
  (specify):

  	
  .

  

 

2.25                        Plan
Year: The Plan Year shall be the 12 consecutive calendar month period
ending on the last day of the month of December,
and each anniversary thereof.

 

4

 

2.34                        Trust:
 [check desired option]:

 

	
  o

  	
   

  	
  (A)

  	
   

  	
  The Employer
  does desire to establish a “rabbi”
  trust for the purpose of setting aside assets of the Employer contributed
  thereto for the payment of benefits under the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (B)

  	
   

  	
  The Employer
  does not desire to establish a “rabbi”
  trust for the purpose of setting aside assets of the Employer contributed
  thereto for the payment of benefits under the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ý

  	
   

  	
  (C)

  	
   

  	
  The Employer
  desires to establish a “rabbi” trust for the purpose of setting aside assets
  of the Employer contributed thereto for the payment of benefits under the
  Plan upon the occurrence of the following
  event(s): Upon the happening of
  a Change in Control as hereafter defined. A Change In Control shall occur
  upon (1) the acquisition by any person of 50% or  more of the voting power of the Employer’s
  outstanding voting stock, (2) five or more of the current members of the
  Board of Directors ceasing to be members of the Board unless ceasing any
  replacement director was  elected
  by a vote of either at least 75% of the remaining directors, or at
  least 75% of the shares entitled to vote on
  such replacement, or (3) approval by the shareholders of the Employer of
  (A) a merger or  consolidation
  with another corporation if the stockholders of the Employer immediately
  before such vote will not, as a result of such merger or consolidation, own
  more than 50% of the voting stock of the corporation resulting from such
  merger or consolidation, or (B) a complete liquidation of the Employer
  or the sale of all, or substantially all, of the assets of the Employer.
  Notwithstanding the foregoing, a Change in Control shall not occur solely
  because 50% or more of the voting stock of the Employer is acquired by (i) a
  trust which is part of the Employer’s or subsidiary’s ‘s employee
  benefit plan, or (ii) by a corporation which, immediately following such
  acquisition, is owned directly or indirectly by the stockholders of the
  Employer in the same  proportion
  as their ownership of stock in the Employer immediately prior to such
  acquisition. In the event a Change in Control occurs, you will be notified by
  the Committee.

  

 

5

 

4.1          Salary
Deferral Credits:  A
Participant may elect to have his Compensation (as selected in Section 2.7
of this Adoption Agreement) reduced by the following annual percentage or
amount as designated in writing to the Committee [check the applicable options]:

 

	
  o

  	
   

  	
  (A)

  	
   

  	
  Annual base salary:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  [Complete the following blanks only
  if a minimum or maximum deferral is desired]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Minimum
  deferral:                 $                        or
                        %

  
	
   

  	
   

  	
   

  	
   

  	
  Maximum
  deferral:                $                        or
                        %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (B)

  	
   

  	
  Annual bonus:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  [Complete the following blanks only
  if a minimum or maximum deferral is desired]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Minimum
  deferral:                 $                        or
                        %

  
	
   

  	
   

  	
   

  	
   

  	
  Maximum
  deferral:                $                        or
                        %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ý

  	
   

  	
  (C)

  	
   

  	
  Other: 1099
  Income.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  [Complete the following blanks only
  if a minimum or maximum deferral is desired]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Minimum
  deferral:                 $                        or           0         %

  
	
   

  	
   

  	
   

  	
   

  	
  Maximum
  deferral:                $                        or         100       %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (D)

  	
   

  	
  Not applicable – no salary deferral
  provision.

  

 

4.1.2       Termination
of Salary Deferrals:  A
Participant may terminate his Salary Deferral Agreement effective as of
[check desired option]:

 

	
  ý

  	
   

  	
  (A)

  	
   

  	
  The first
  full payroll period commencing after the date written notice of the
  termination is received 

  
	
  by the
  Committee.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (B)

  	
   

  	
  The first
  day of the Plan Year occurring after the date written notice of the termination
  is received by the Committee.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (C)

  	
   

  	
  Not
  applicable – no salary deferral provision.

  

 

6

 

4.2          Employer Credits:  The Employer will make Employer Credits in the
following manner [check a maximum of 2
desired option(s)]:

 

	
  o

  	
   

  	
  (A)

  	
   

  	
  Employer
  Matching Credits:  The Employer may make matching credits
  to the Deferred Compensation Account of each Employee Participant in an
  amount determined as follows [check desired option(s)]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  (i)

  	
   

  	
          %
  of the Participant’s Salary Deferral Credits.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  (ii)

  	
   

  	
          %
  of the first         % of the
  Participant’s Compensation which is elected as a Salary Deferral Credit.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  (iii)

  	
   

  	
  An amount
  determined each Plan Year by the Employer.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  (iv)

  	
   

  	
  The Employer
  shall not match amounts provided above in excess of $               or
  in excess of         % of the
  Participant’s Compensation per Plan Year.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  (v)

  	
   

  	
  Other:

  	
  .

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
   

  	
  (vi)

  	
   

  	
  Not
  applicable – no Employer matching credits provision.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (B)

  	
   

  	
  Employer
  Profit Sharing Credits:  The Employer may make profit sharing
  credits to the Deferred Compensation Account of each Active Employee
  Participant in an amount determined as follows:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  (i)

  	
   

  	
  Such amount
  out of the current or accumulated net profit of the Employer for such year as
  the Employer in its sole discretion shall determine.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  (ii)

  	
   

  	
  Such amount
  as the Employer in its sole discretion shall determine without regard to
  current or accumulated net profit.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  (iii)

  	
   

  	
  The Employer
  shall not make profit sharing credits in excess of $              ,
  or in excess of         % of the
  Participant’s Compensation per Plan Year.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  (iv)

  	
   

  	
  Other:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  .

  
	
   

  	
   

  	
  ý

  	
   

  	
  (v)

  	
   

  	
  Not
  applicable – no Employer profit sharing provision.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (C)

  	
   

  	
  Other
  [describe]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  .

  
									

 

7

 

5.1          Death
of a Participant:  If
the Participant dies while in Service, the Employer shall pay a benefit to the
Beneficiary in an amount equal to the Accrued Benefit of the Participant
determined as of the date payments to the Beneficiary commence, plus [check if
desired]:

 

	
  o

  	
   

  	
  (A)

  	
   

  	
  An amount to
  be determined by the Committee.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (B)

  	
   

  	
  Other
  [specify]:

  	
  .

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ý

  	
   

  	
  (C)

  	
   

  	
  No
  additional benefits.

  

 

6.1          In-Service
Withdrawals:  In-service
withdrawals may be made from the Plan [check desired option]:

 

	
  ý

  	
   

  	
  (A)

  	
   

  	
  Yes.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (i)

  	
   

  	
  The In-Service Account may be
  withdrawn only after the account has been established for [check desired
  option]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ý

  	
   

  	
  (a)          A
  minimum of 3 years (insert
  minimum of 2 years.)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (b)         Not
  applicable.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (ii)

  	
   

  	
  A Participant may defer the date of
  any scheduled in-service withdrawal by giving notice of the new withdrawal
  date to the Committee [check desired option]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (a)          At
  least         (insert minimum of 12)
  months prior to the scheduled withdrawal date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ý

  	
   

  	
  (b)         Not
  applicable.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (B)

  	
   

  	
  No in-service withdrawals.

  

 

8

 

6.2          Financial
Hardship Withdrawals:  Financial
hardship withdrawals may be made from the Plan [check desired option]:

 

	
  ý

  	
   

  	
  (A)

  	
   

  	
  Yes.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (B)

  	
   

  	
  No.

  

 

6.3          “Haircut” Withdrawals:  “Haircut” withdrawals may be
made from the Plan [check desired option]:

 

	
  o

  	
   

  	
  (A)

  	
   

  	
  Yes.  If a Participant obtains a “haircut”
  withdrawal, the Participant shall forfeit 10%
  (specify percentage not less than 10%) of the amount of withdrawal.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ý

  	
   

  	
  (B)

  	
   

  	
  No “haircut” withdrawals.

  

 

6.4          Education Withdrawals:  Education withdrawals may be
made from the Plan [check desired option]:

 

	
  ý

  	
   

  	
  (A)

  	
   

  	
  Yes.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (i)

  	
   

  	
  Education withdrawals may be made in
  installment payments over no more than 6 years.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (ii)

  	
   

  	
  A Participant may defer the date of
  any scheduled education withdrawal by giving notice of the new withdrawal
  date to the Committee [check desired option]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (a)          At
  least         (insert minimum of 12)
  months prior to the scheduled withdrawal date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ý

  	
   

  	
  (b)         Not
  applicable.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (B)

  	
   

  	
  No education withdrawals.

  

 

9

 

7.1                               Payment
Options:  Any benefit payable under
the Plan upon a Qualifying Distribution Event may be made to the
Participant or his Beneficiary (as applicable) in any of the following payment
forms, as selected by the Participant upon his entry into the Plan [check
desired option(s)]:

 

	
  ý

  	
   

  	
  (A)

  	
   

  	
  A lump sum in cash as soon as practicable
  following the date of the Qualifying Distribution Event.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ý

  	
   

  	
  (B)

  	
   

  	
  Approximately equal annual installments
  over a term no longer than 10 years
  as elected by the Participant upon his entry into the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
   

  	
  (i)

  	
   

  	
  Payment of the benefit shall commence as soon
  as practicable after the following date [select desired option]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (a)

  	
   

  	
  The first business day of the calendar year following the date of the Qualifying
  Distribution Event.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (b)

  	
   

  	
  The first business day of the calendar quarter following the date of
  the Qualifying Distribution Event.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ý

  	
   

  	
  (c)

  	
   

  	
  The first business day of the calendar month following the date of the
  Qualifying Distribution Event.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  The payment of each annual installment shall be made on the
  anniversary of the date selected for the commencement of the installment
  payments in this subsection (i).  The
  amount of the annual installment shall be adjusted on each anniversary date
  of the commencement of the installment payments for credits or debits to the
  Participant’s account pursuant to Section 9 of the Plan. Such adjustment
  shall be made by dividing the balance in the Deferred Compensation Account on
  each such date (following adjustment on such date) by the number of annual
  installments remaining to be paid hereunder; provided that the last annual
  installment due under the Plan shall be the entire amount credited to the
  Participant’s account on the date of the payment.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
   

  	
  (ii)

  	
   

  	
  Notwithstanding the payment option elected
  by the Participant, the vested Accrued Benefit of the Participant will be
  distributed in a single lump payment if the amount of such benefit on the
  date that payment is to commence does not exceed [check desired option]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (a)

  	
   

  	
  $                  (Insert desired cash out amount).

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  ý

  	
   

  	
  (b)

  	
   

  	
  Not applicable.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ý

  	
   

  	
  (C)

  	
   

  	
  A Participant may defer the date of
  any scheduled payment by giving notice of the new payment date to the
  Committee [check desired option]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  (i)

  	
   

  	
  (a)          At
  least         (insert minimum of 12)
  months prior to the scheduled payment date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
   

  	
  (ii)

  	
   

  	
  (b)         Not
  applicable.

  

 

10

 

	
  ý

  	
   

  	
  (D)

  	
   

  	
  Other [specify]: A Participant may change an initial form of
  payment election by a writing 

  
	
   

  	
   

  	
  delivered to the Employer to select either
  a lump sum or installments as allowed in Section 7.1 (A) and
  (B) above, at any time up to the date director status ends or, with
  respect to accounts paid while still a director, before the December 31
  of the year prior to the year in which payment is to begin.

  

 

8.              Vesting:
An Active Participant shall be fully vested in the Employer Credits made to
the Deferred Compensation Account upon occurrence of the following events
[check or complete all that apply]:

 

	
  o

  	
   

  	
  (A)

  	
   

  	
  Normal Retirement Date.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (B)

  	
   

  	
  Death.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (C)

  	
   

  	
  Disability.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (D)

  	
   

  	
  Completion of that number of Years of
  Service specified below:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  (i)

  	
   

  	
  Employer Matching Credits [complete
  if applicable]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (a)

  	
   

  	
  Immediate 100% vesting.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (b)

  	
   

  	
  100% vesting
  after       Years of Service.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (c)

  	
   

  	
  100% vesting at age
         .

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (d)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Number of Years

  	
   

  	
  Vested

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  of Service

  	
   

  	
  Percentage

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Less than

  	
  1

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8 or more

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  For this purpose, Years of Service of a
  Participant shall be calculated from the date designated below [check desired
  option]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (1)

  	
   

  	
  First Day of Service.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (2)

  	
   

  	
  Effective Date of the Plan Participation.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (3)

  	
   

  	
  Each Crediting Date. Under this option (3),
  each Employer Matching Credit shall vest based on the Years of Service of a
  Participant from the Crediting Date on which each Employer Credit is made to
  his or her Deferred Compensation Account.

  
																

 

11

 

	
   

  	
   

  	
  o

  	
   

  	
  (ii)

  	
   

  	
  Employer Profit Sharing Credits [complete
  if applicable]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (a)

  	
   

  	
  Immediate 100% vesting.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (b)

  	
   

  	
  100% vesting after       Years
  of Service.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (c)

  	
   

  	
  100% vesting at age
         .

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (d)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Number of Years

  	
   

  	
  Vested

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  of Service

  	
   

  	
  Percentage

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Less than

  	
  1

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  9

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10 or more

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  For this purpose, Years of Service of a
  Participant shall be calculated from the date designated below [check desired
  option]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (1)

  	
   

  	
  First Day of Service.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (2)

  	
   

  	
  Effective Date of the Plan Participation.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (3)

  	
   

  	
  Each Crediting Date. Under this option (3),
  each Employer Profit Sharing Credit shall vest based on the Years of Service
  of a Participant from the Crediting Date on which each Employer Credit is
  made to his or her Deferred Compensation Account.

  
																

 

12

 

	
   

  	
   

  	
  o

  	
   

  	
  (iii)

  	
   

  	
  Other Employer Credits [complete
  if applicable]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (a)

  	
   

  	
  Immediate 100% vesting.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (b)

  	
   

  	
  100% vesting after       Years
  of Service.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (c)

  	
   

  	
  100% vesting at age
         .

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (d)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Number of Years

  	
   

  	
  Vested

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  of Service

  	
   

  	
  Percentage

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Less than

  	
  1

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  5

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  6

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  7

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  8

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  9

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  10 or more

  	
   

  	
        

  	
  %

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  For this purpose, Years of Service of a
  Participant shall be calculated from the date designated below [check desired
  option]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (1)

  	
   

  	
  First Day of Service.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (2)

  	
   

  	
  Effective Date of the Plan Participation.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  o

  	
   

  	
  (3)

  	
   

  	
  Each Crediting Date. Under this option (3),
  each Other Employer Credit shall vest based on the Years of Service of a
  Participant from the Crediting Date on which each Employer Credit is made to
  his or her Deferred Compensation Account.

  
																

 

10.          Benefit
Exchange: The Employer elects to permit the
Participant to exchange all or any portion of the vested Accrued Benefit under
the Plan for another type of nonqualified benefit [check desired option]:

 

	
  o

  	
   

  	
  (A)

  	
   

  	
  Yes.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ý

  	
   

  	
  (B)

  	
   

  	
  No.

  

 

11.          Transfer
to Qualified Plan: The Employer elects to permit the
Participant to direct the transfer of a portion of his benefit under this Plan
to a tax-qualified retirement plan maintained by the Employer [check desired
option]:

 

	
  o

  	
   

  	
  (A)

  	
   

  	
  Yes. Insert name of Qualified Plan:

  	
  .

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ý

  	
   

  	
  (B)

  	
   

  	
  No.

  

 

13

 

17. Amendment or Termination of Plan: [check
or complete all that apply]:

 

	
  ý

  	
   

  	
  (A)

  	
   

  	
  Notwithstanding any provision in this
  Adoption Agreement or the Plan to the contrary, Exhibit A shall be added to Section 4.1.5 of the Plan.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  (B)

  	
   

  	
  The Plan shall be terminated upon the
  occurrence of one or more of the following events [check if desired]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  (i)

  	
   

  	
  The amount of shareholders equity shown on
  the financial statements of the Employer for each of the two most recent
  fiscal years is less than
  $            .

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  (ii)

  	
   

  	
  The aggregate net loss (after tax) as
  reported on the financial statements of the Employer for the two most recent
  fiscal years is greater than
  $            .

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  (iii)

  	
   

  	
  There is a change of control of the
  Employer. For this purpose, a “change of control” shall be deemed to have
  occurred if: (A) any person other than an officer who is an Employee of
  the Employer for at least one year preceding the change of control, acquires
  or becomes the beneficial owner, directly or indirectly, of securities of the
  Employer representing       % [insert
  percentage] or more of the combined voting power of the Employer’s then
  outstanding securities and thereafter, the membership of the Board becomes
  such that a majority are persons who were not members of the Board at the
  time of the acquisition of securities; or (B) the Employer, or its assets,
  are acquired by or combined with another entity and less than a majority of
  the outstanding voting shares of such entity after the acquisition or
  combination are owned, immediately after the acquisition or combination, by
  the owners of voting shares of the Employer immediately prior to the
  acquisition or combination.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  (iv)

  	
   

  	
  Other [specify]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  .

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ý

  	
   

  	
  (C)

  	
   

  	
  In the event of a termination of the Plan,
  the Employer elects that [check if desired]:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  o

  	
   

  	
  (i)

  	
   

  	
  Each Active Participant will become fully
  vested in the Deferred Compensation Account. [If not checked, the vesting
  provisions of Section 8 will continue to apply.]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ý

  	
   

  	
  (ii)

  	
   

  	
  The Deferred Compensation Account will be
  immediately distributed to each Participant in a single lump sum payment. [If
  not checked the payment provisions of Section 7 will continue to apply.]

  

 

14

 

20.9                        Construction: The
provisions of the Plan and Trust (if any) shall be construed and enforced
according to the laws of the State of Kentucky,
except to the extent that such laws are superseded by ERISA.

 

 

IN WITNESS WHEREOF, this Agreement has been executed as of the day and
year first above stated.

 

 

	
   

  	
   

  	
  STOCK YARDS BANK AND TRUST COMPANY

  
	
   

  	
   

  	
  Name of
  Employer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Person

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title

  

 

 

NOTE:
Execution of this Adoption Agreement creates a legal liability of the Employer
with significant tax consequences to the Employer and Participants. The
Employer should obtain legal and tax advice from its professional advisors
before adopting the Plan. The Sponsor disclaims all liability for the legal and
tax consequences which result from the elections made by the Employer in this
Adoption Agreement.

 

15

 

Exhibit A

 

Director fee’s
deferred into the Stock Yards Bank Stock index are irrevocable. They may not
be rebalanced or reallocated until a normal distribution event occurs. Future
Director Fee Deferrals may be allocated into different investment indices.

 

16

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