Document:

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                                  EXHIBIT 10.18

                                    RESTATED
                           TOWER FINANCIAL CORPORATION
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

          Tower Financial Corporation (sometimes referred to as the "Company")
hereby restates the Supplemental Executive Retirement Plan, effective as of
January 1, 2004, in its entirety. The Plan is an unfunded, non-qualified plan
for the payment of deferred compensation to certain executive employees, in
recognition of their substantial contributions to the operation of Tower
Financial Corporation and affiliates and provides them with additional
incentives to enhance Tower Financial Corporation and its programs.

                      DEFINITIONS AND RULES OF CONSTRUCTION

     Section 1.1. Definitions.  As used in the Plan, the following words and
phrases, when capitalized, have the following meanings:

"ACCRUED BENEFIT" MEANS, WITH RESPECT TO A PARTICIPANT, A SERIES OF EQUAL
MONTHLY PAYMENTS, COMMENCING AT THE PARTICIPANT'S NORMAL RETIREMENT DATE AND
CONTINUING UNTIL HIS DEATH, EACH IN THE FOLLOWING AMOUNT:

               (1) the Participant's Average Monthly Compensation multiplied by
          the Benefit Factor, less

               (2) the value of the Actuarial Equivalent of the Participant's
          Social Security Offset.

     Notwithstanding the foregoing, in no event shall Participant's Accrued
     Benefit exceed Eight Thousand Three Hundred Thirty-Three Dollars
     ($8,333.00) per month.

"ACTUARIAL EQUIVALENT" MEANS, WITH RESPECT TO A BENEFIT UNDER THE PLAN, AN
ACTUARIALLY EQUIVALENT BENEFIT DETERMINED USING (I) THE 1983 GROUP ANNUITY
MORTALITY TABLE - WEIGHTED 50 PERCENT MALE AND 50 PERCENT FEMALE AND (II) THE
30-YEAR U.S. TREASURY RATE IN EFFECT DURING THE MONTH OF NOVEMBER PRECEDING THE
YEAR THE BENEFIT DETERMINATION OCCURS.

"AFFILIATE" MEANS ANY EMPLOYER THAT, TOGETHER WITH TOWER FINANCIAL CORPORATION,
IS UNDER COMMON CONTROL OR A MEMBER OF AN AFFILIATED SERVICE GROUP, AS
DETERMINED UNDER CODE SUBSECTIONS 414(B), (C), (M), AND (O).

"AVERAGE MONTHLY COMPENSATION" MEANS, WITH RESPECT TO A PARTICIPANT, THE AVERAGE
OF THE PARTICIPANT'S MONTHLY COMPENSATION FOR THE THIRTY-SIX (36) CONSECUTIVE
CALENDAR MONTHS THAT PRODUCES THE HIGHEST AVERAGE DURING THE TEN (10) YEAR
PERIOD IMMEDIATELY BEFORE THE EARLIER OF THE PARTICIPANT'S NORMAL RETIREMENT
DATE, DATE OF DEATH, DISABILITY DATE OR PLAN TERMINATION.

"BENEFICIARY" MEANS, WITH RESPECT TO EACH PARTICIPANT, THE PERSON OR PERSONS
DESIGNATED PURSUANT TO SECTION 3.8 TO RECEIVE BENEFITS UNDER THE PLAN IN THE
EVENT OF HIS DEATH.

          (f) "Benefit Factor" for a Plan Year means twenty-five percent (25%),
     plus two percent (2%) for each Year of Service completed by the
     Participant. The Benefit Factor shall not exceed thirty-five percent (35%).

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          (g) "Board of Directors" means the Board of Directors of Tower
     Financial Corporation.

          (h) "Cause" means, with respect to an Employment Termination, (1)
     commission by the Employee of a felony or other serious crime or (2)
     fraudulent or dishonest conduct by the Employee, intended to benefit the
     Employee at the expense of Tower Financial Corporation or an Affiliate.

          (i) "Change of Control" means a change in ownership or governance of
     Tower Financial Corporation described in Section 3.9.

          (j) "Code" means the Internal Revenue Code of 1986, as amended, and
     its interpretive rules and regulations.

          (k) "Commencement Date" means, with respect to a Participant, the date
     that the payment of the Participant's benefit under the Plan commences, as
     provided in Article III.

          (l) "Compensation" means, with respect to a Participant, the monthly
     base compensation payable to the Executive, without regard Code Section
     401(a)(17), including any salary-reduction contributions to non-qualified
     plans or cafeteria plans, plus the Deemed Monthly Bonus. Compensation
     specifically excludes any imputed income and any amounts recognized for the
     granting or exercising of options or restricted stock. For purposes herein,
     the Deemed Monthly Bonus means an amount equal to the sum of the three
     annual bonuses (including employee deferrals into a savings or cafeteria
     plan) paid to Executive during the 36 month period used to calculate his
     Average Monthly Compensation divided by 36.

          (m) The Compensation Committee means the Compensation Committee of the
     Board of Directors.

          (n) "Disability" means a Participant's disability as determined under
     the long-term disability plan maintained by Tower Bank & Trust Company.

          (o) "Early Retirement Date" means, with respect to a Participant, the
     first day of the month beginning on or after the date the Participant
     attains age 65.

          (p) "Employee" means any person employed by Tower Financial
     Corporation or an Affiliate on a full-time, salaried basis.

          (q) "Employment Termination" means the cessation of a Participant's or
     former Participant's status as an Employee for any reason. A Participant
     shall be deemed to be an Employee for purposes of this Plan if he receives
     any remuneration or fees from Company for consulting services or Board
     membership.

          (r) "Normal Retirement Date" means, with respect to a Participant, the
     first day of the month beginning on or after the date the Participant
     attains age 70.

          (s) "Officer" means an Employee who is serving in a key management
     position for Tower Financial Corporation or an Affiliate that the Board of
     Directors designates as a position eligible for Plan participation.

          (t) "Participant" means a key management Employee who is selected by
     the Compensation Committee to participate in the Plan pursuant to Section
     2.1 and listed in the Appendix.

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          (u) "Plan" means this instrument, as restated and amended from time to
     time, and the non-qualified supplement retirement plan established by this
     instrument, as amended.

          (v) "Plan Year" means January 1, 2002, to December 31, 2002, and
     thereafter the calendar year.

          (w) "Social Security Offset" means the Participant's unreduced primary
     insurance amount payable at the Participant's normal retirement age, as
     provided under section 202 of the Social Security Act as in effect at the
     time the Social Security Offset is determined.

          (x) "Year of Service" means, with respect to a Participant, the number
     of complete Plan Years that the Participant is employed by the Company
     after the effective date of the Plan.

     Section 1.2. Rules of Construction.  The following rules of construction
shall govern in interpreting the Plan:

THE PLAN IS INTENDED TO BE AN UNFUNDED DEFERRED COMPENSATION PLAN FOR A SELECT
GROUP OF MANAGEMENT OR HIGHLY COMPENSATED EMPLOYEES THAT IS EXEMPT FROM PARTS 2,
3, AND 4 OF SUBTITLE B OF TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT
OF 1974.

THE PROVISIONS OF THIS PLAN SHALL BE CONSTRUED AND GOVERNED IN ALL RESPECTS
UNDER AND BY THE INTERNAL LAWS OF THE STATE OF INDIANA.

IF ANY PROVISION OF THE PLAN IS HELD TO BE ILLEGAL OR INVALID FOR ANY REASON,
THAT PROVISION SHALL BE VOID, BUT THE VOIDING OF THAT PROVISION SHALL NOT
OTHERWISE IMPAIR OR AFFECT THE REMAINING PROVISIONS OF THE PLAN.

                                  PARTICIPATION

     Section 2.1. Commencement of Participation.  The Compensation Committee
shall designate each Employee who is to become a Participant by resolution of
the Board of Directors and by identifying the Employee as a Participant on the
attached Appendix.

     Section 2.2. Termination of Participation.  Once designated a Participant,
an Employee shall continue to be a Participant until (a) the Compensation
Committee determines that he shall cease to be a Participant, (b) his Employment
Termination or Disability, or (c) the termination of the Plan, whichever occurs
first.

                                FORMS OF BENEFIT

     Section 3.1. Normal Retirement Benefit.  Except as otherwise provided in
this Plan, if a Participant incurs an Employment Termination after attaining age
65 but before his Normal Retirement Date, his Plan benefits shall be paid in a
series of monthly installments in the amount of his Accrued Benefit, commencing
on the 1st day of the month following his Normal Retirement Date and continuing
until his death.

     Section 3.2. Delayed Retirement Benefit.  If a Participant incurs an
Employment Termination after his Normal Retirement Date, his Plan benefits shall
be paid in a series of monthly installments in an amount that is the Actuarial
Equivalent of his Accrued Benefit, commencing on the first day of the month
following his Employment Termination and continuing until his death.

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     Section 3.3. Disability Benefit.  If a Participant incurs a Disability
while an Employee, his Plan benefit shall be paid in a series of monthly
installments, each in an amount that is the Actuarial Equivalent of his Accrued
Benefit, commencing on the first day of the month following the effective date
of his Disability and continuing until his death.

     Section 3.4. Death Benefit.

          (a) If a Participant dies while an Employee, his Accrued Benefit shall
     be paid to his Beneficiary, commencing as soon as administratively feasible
     following his death, in a lump sum amount that is the Actuarial Equivalent
     of his Accrued Benefit.

          (b) If a Participant dies while receiving benefits under this Plan, no
     further benefits shall be paid under this Plan.

     Section 3.5. Employment Termination Benefit.  If a Participant incurs an
Employment Termination before his Normal Retirement Date, his Plan benefit shall
be as follows:

EXCEPT AS SPECIFICALLY PROVIDED IN SECTIONS 3.3, 3.4, 3.5(B) AND 3.9, THE
PARTICIPANT SHALL NOT BE ENTITLED TO ANY BENEFIT UNDER THE PLAN IF HIS
EMPLOYMENT IS TERMINATED PRIOR TO REACHING HIS 65TH BIRTHDAY.

SOLELY WITH RESPECT TO DONALD SCHENKEL, IF THE COMPANY DOES NOT RETAIN HIM FOR
THE TERM OF THAT CERTAIN EMPLOYMENT CONTRACT BETWEEN THE COMPANY AND DONALD
SCHENKEL WITHOUT CAUSE, INCLUDING ARTICLE XIII, UNILATERALLY AND/OR MATERIALLY
REDUCES HIS RESPONSIBILITIES WITHOUT CAUSE PRIOR TO HIS 65TH BIRTHDAY, OR THEN
THE LUMP SUM ACTUARIAL VALUE OF HIS ACCRUED BENEFIT SHALL BE PAID WITHIN 30 DAYS
OF THE DATE THE COMPANY PROVIDES WRITTEN NOTICE TO SCHENKEL; PROVIDED, HOWEVER,
THAT THE ACCRUED BENEFIT PAYABLE UNDER THIS PARAGRAPH (B) SHALL NOT BE
ACTUARIALLY REDUCED FOR PAYMENT PRIOR TO HIS NORMAL RETIREMENT DATE.

          (c) Notwithstanding any to the contrary set forth in this Plan, if the
     Employment Termination is initiated by Tower Financial Corporation For
     Cause, the Participant's benefits under the Plan shall be forfeited.

     Section 3.6. Termination of the Plan by the Company.  Upon termination of
the Plan by the Company, each Participant shall be entitled to a benefits under
the Plan as follows:

          (a) If the Company terminates the Plan within twelve (12) months
     following a Change of Control, each Participant's Plan benefit shall be
     paid, as soon as administratively feasible after Plan termination, in a
     single, lump-sum amount that is the Actuarial Equivalent of his Accrued
     Benefit.

          (b) If the Company terminates the Plan under any other circumstance,
     each Participant's Accrued Benefit shall be frozen, and his Plan benefit
     shall be paid to him or, in the event of his death, to his Beneficiary at
     the same time, and in the same form and amount, that his Plan benefit would
     have been paid had the Plan not been terminated.

     Section 3.7. Benefits for a Former Participant.  If the Company determines
that a Participant shall cease to participate in the Plan before he has begun to
receive his Plan benefit, the Participant's Accrued Benefit shall be frozen, and
his Plan benefit shall be paid to him or, in the event of his death, to his
Beneficiary at the same time, and in the same form and amount, that his Plan
benefit would have been paid had he remained a Participant until his death,
Disability, Employment Termination, or Plan termination, whichever is
applicable.

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     Section 3.8. Designation of Beneficiary.  In accordance with procedures
prescribed by the Company, each Participant shall designate as Beneficiary the
person or persons, including a trustee, to receive any Accrued Benefit payable
under Section 3.4 following his death. If the Participant does not designate a
Beneficiary, or if no designated Beneficiary survives the Participant, his
Beneficiary shall be his estate.

     Section 3.9. Change of Control.

          (a) For purposes of the Plan, a Change of Control will have the
     following meaning:

               (i) A reorganization, merger, consolidation or other form of
          corporate transaction or series of transactions, in each case, with
          respect to which persons who were the stockholders of the Company
          immediately prior to such reorganization, directly or indirectly, own
          less than fifty percent (50%) of the combined voting power entitled to
          vote generally in the election of directors of the reorganized, merged
          or consolidated entity's then outstanding voting securities;

               (ii) A liquidation or dissolution of the Company;

               (iii) The acquisition by any person, entity or "group," within
          the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
          Act of 1934, (excluding any employee benefit plan of the Company or
          its subsidiaries which acquires beneficial ownership (within the
          meaning of Rule 13d-3 promulgated under the Securities Exchange Act)
          of more than fifty percent (50%) of either the then outstanding shares
          of common stock or the combined voting power of the Company's then
          outstanding voting securities entitled to vote generally in the
          election of directors; or

               (iv) As the result of, or in connection with, any tender or
          exchange offer, merger, consolidation or other business combination,
          sale or disposition of all or substantially all of the Company's
          assets, or contested election, or any combination of the foregoing
          transactions (a "Transaction"), the persons who were directors of the
          Company immediately before the Transaction shall cease to constitute a
          majority of the Board of Directors of the Company or any successor to
          the Company.

          (b) Notwithstanding anything to the contrary contained herein, if a
     Participant is terminated by the Company or his authority and
     responsibility are substantially reduced, without Cause within three (3)
     months prior or twelve (12) months after a Change in Control, the present
     value of the Participant's Accrued Benefit shall be paid in a single lump
     sum distribution within sixty (60) days of his date of termination.

                                   ARTICLE IV
                                     FUNDING

     Section 4.1. Plan Unfunded.  The obligation to pay benefits under the Plan
represents only a contractual obligation of the Company to make payments when
due. Tower Bank & Trust Company's obligation to pay benefits shall not be
secured in any way, and neither shall set aside assets beyond the reach of their
general creditors for the purpose of paying benefits under the Plan.

     Section 4.2. Insurance Contracts.  The Company may determine, in its sole
discretion, to purchase one or more life insurance contracts on the
Participant's life as a means of reserving assets to pay its obligations under
the Plan. In that event, the Participant shall, as a condition to receiving any
benefits under the Plan, consent to the purchase of that insurance, execute any
application or other forms that the insurer reasonably requires, and make other
reasonable efforts to permit the Company to obtain that insurance.

                                       5
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                                    ARTICLE V
                                 ADMINISTRATION

     Section 5.1. Tower Financial Corporation.  Tower Financial Corporation
shall administer the Plan and may delegate all or a portion of its
responsibility to such individuals as it deems appropriate.

     Section 5.2. Notices.  Any notice to the Company under the Plan shall be
sufficient if it is in writing and delivered by hand or sent by registered or
certified mail, return receipt requested, to the Board of Directors. Any notice
to a Participant or his Beneficiary under the Plan shall be sufficient if it is
in writing and delivered by hand or sent by registered or certified mail, return
receipt requested, to the Participant or, in the event of his death, to the
Beneficiary. Any notice shall be deemed made as of the date of delivery by hand
or the mailing date shown on the return receipt for registered or certified
mail.

     Section 5.3. Powers and Duties of the Company.  Subject to the specific
limitations stated in this Plan, the Company shall have the following powers,
duties, and responsibilities:

          (a) To carry out the general administration of the Plan;

          (b) To cause to be prepared all forms necessary or appropriate for the
     administration of the Plan;

          (c) To keep appropriate books and records;

          (d) To determine amounts to be distributed to a Participant and his
     Beneficiary under the provisions of the Plan;

          (e) To determine, consistently with the provisions of this instrument,
     all questions of eligibility, rights, and status of each Participant and
     his Beneficiary under the Plan;

          (f) To issue, amend, and rescind rules relating to the administration
     of the Plan, to the extent those rules are consistent with the provisions
     of this instrument;

          (g) To exercise all other powers and duties specifically conferred
     upon Tower Bank & Trust Company elsewhere in this instrument; and

          (h) To interpret, with discretionary authority, the provisions of this
     Plan and to resolve, with discretionary authority, all disputed questions
     of Plan interpretation and benefit eligibility.

                                   ARTICLE VI
                            AMENDMENT AND TERMINATION

     Section 6.1. Amendment.  The Company may amend the Plan at any time by
action of the Board of Directors, with written notice to each Participant. The
Company, however, may not make any amendment that reduces a Participant's
benefits below amounts already earned or that delays the payment of those
benefits past the time provided under the Plan immediately before the date of
the amendment, unless the Participant consents in writing to the amendment.

     Section 6.2. Termination.  The Company reserves the right to terminate the
Plan, by action of the Board of Directors, at any time it deems appropriate.
Upon termination of the Plan, no further benefits shall be earned under the Plan

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                                   ARTICLE VII
                                  MISCELLANEOUS

     Section 7.1. Relationship.  Notwithstanding any other provision of this
Plan, this Plan and action taken pursuant to it shall not be deemed to establish
a trust or fiduciary relationship of any kind between the Company and any
Participant or his Beneficiary. The Plan is intended to be unfunded for purposes
of the Employee Retirement Income Security Act of 1974, as amended. The Plan
shall not be deemed to grant a Participant, his Beneficiary, or any other person
any interest or right in any property of the Company other than as an unsecured
general creditor of the Company.

     Section 7.2. Anticipation of Benefits.  Neither a Participant nor his
Beneficiary shall have the power to transfer, assign, anticipate, pledge,
alienate, or otherwise encumber in advance any of the payments that may become
due under this Plan, and any attempt to do so shall be void. Any payments that
may become due under this Plan shall not be subject to attachment, garnishment,
execution, or be transferable by operation of law in the event of bankruptcy,
insolvency, or otherwise.

     Section 7.3. No Guarantee of Continued Employment.  Nothing contained in
this Plan or any action taken under the Plan shall be construed as a contract of
employment or as giving a Participant any right to be retained in employment
with the Company.

     Section 7.4. Persons Subject to the Plan.  This Plan shall be binding upon
and inure to the benefit of each Participant and his Beneficiaries and upon the
Company and their successors and assigns.

     Section 7.5. Responsibility for Tax Status.  The Company does not make any
warranties, express or implied, or assume any responsibility concerning the
federal, state, or local taxation of rights or benefits under the Plan.

     Section 7.6. Tax Withholding.  The Company may withhold from each
Participant's compensation or from any benefit paid under the Plan such amounts
as may be required by applicable federal, state, or local tax laws.

          Tower Financial Corporation has caused this Restatement of the Plan to
be executed by its duly authorized officers on the 29th day of January, 2004.

                                        Tower Financial Corporation

                                        By: /s/ Kevin J. Himmelhaver
                                            ------------------------------------
                                            Kevin J. Himmelhaver
                                        Title: Executive Vice President, Chief
                                               Financial Officer and Secretary

                                       7
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                                    APPENDIX

     The Compensation Committee has designated the following individuals as
Participants in the Supplemental Executive Retirement Plan of Tower Financial
Corporation:

<TABLE>
<CAPTION>
Name                 Effective Date of Participation
----                 -------------------------------
<S>                  <C>
Donald F. Schenkel   January 1, 2002
</TABLE>

                                       8<PAGE>

                                                                   EXHIBIT 10k-1
                     AMENDMENT TO THE BELLSOUTH CORPORATION
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

      THIS AMENDMENT to the BellSouth Corporation Supplemental Executive
Retirement Plan (the "Plan") is made effective as of the dates set forth herein.

                              W I T N E S S E T H:

      WHEREAS, BellSouth Corporation (the "Company") sponsors the Plan, which
was amended and restated effective November 1, 1997; and

      WHEREAS, the BellSouth Board of Directors' Nominating and Compensation
Committee (the "Committee") approved a provision at its November 24, 2003
meeting to amend the Plan to provide for a lump sum optional form of payment
that was effective beginning January 1, 2004; and

      WHEREAS, the Committee also approved a provision at its June 28, 2004
meeting to amend the Plan to provide for an enhanced pre-retirement survivor
benefit that was effective immediately; and

      WHEREAS, the Committee authorized appropriate officers of the Company to
do such further acts and to execute such documents as may be necessary or
advisable to effectuate the purposes of such Plan amendments;

      NOW, THEREFORE, pursuant to the authority delegated by the Committee, the
authorized officer approves the following revisions to the Plan document to
reflect these amendments:

                                       1.

      Effective as of January 1, 2004, Section 4 of the Plan is hereby amended
by adding to subparagraph 3(a) the following:

                  "Notwithstanding the preceding, with respect to any
                  Participant who has made a valid lump sum election under the
                  Plan, such lump sum shall be paid in the applicable time
                  period set forth under subsection 6 of Section 5 of the Plan."

<PAGE>

                                       2.

      Effective as of January 1, 2004, Section 4 of the Plan is hereby amended
by adding to subparagraph 3(b) the following:

                  "(v) Notwithstanding the preceding, with respect to any
                  Participant who has made a valid lump sum election under the
                  Plan, such lump sum shall be paid in the applicable time
                  period set forth under subsection 6 of Section 5 of the Plan."

                                       3.

            Effective June 28, 2004, Section 4 of the Plan is hereby amended by
deleting subparagraph 4(e) and replacing it with the following paragraphs:

            "(e)  Survivor/Death Benefits.

            (i)   Benefit Payable Before Benefit Commencement.

                  If a Participant who has not made a valid lump sum election
                  dies prior to termination of employment (and prior to election
                  of his Pension Plan benefit for a Participant with a deferred
                  benefit) and leaves a surviving spouse at the time of his
                  death, a pre-retirement survivor benefit is payable to the
                  surviving spouse as an immediate life annuity equal to 100% of
                  the service benefit or deferred benefit that the Participant
                  would have received had he survived and terminated employment
                  on the date of his death and commenced benefit payments. If
                  such Participant does not have a surviving spouse at the time
                  of his death, the pre-retirement survivor benefit described in
                  this paragraph shall be paid to the Participant's estate as
                  soon as administratively feasible following the Participant's
                  death (even if the Participant was a Band BB officer or above)
                  in the form of a single sum payment which is the actuarial
                  equivalent of the benefit calculated in accordance with the
                  provisions of subparagraph (c) of Section 5.5 hereof.

            (ii)  Benefit Payable After Benefit Commencement.

                  If the Participant was receiving benefits in the form of an
                  annuity (or was eligible to receive benefits because of
                  retirement or election under the Pension Plan), and leaves a
                  surviving spouse at the time of his/her death, then such
                  surviving spouse shall automatically receive a survivor
                  annuity for life equal to 50% of the net pension benefit that
                  the Participant was receiving (or eligible to receive) just
                  prior to his death.

<PAGE>

            (iii) Lump Sum Election.

                  In the event of the death of a Participant who has made a
                  valid lump sum election under the Plan, his surviving spouse
                  (or his estate if there is no surviving spouse) shall be
                  entitled to receive 100% of the lump sum payment that would
                  have been payable to the Participant had he survived and
                  terminated employment on the date of his death, and such lump
                  sum shall be payable as soon as administratively feasible
                  following the Participant's death (even if the Participant was
                  an Executive designated as a Band BB officer or above).

            (iv)  Lump Sum Settlement.

                  If a Participant has already received a lump sum settlement of
                  his benefit under the Plan, then no further benefits are
                  payable under this subparagraph (e).

                                       4.

            Effective as of January 1, 2004, Section 5 of the Plan is hereby
amended by deleting subparagraph 5 in its entirety and replacing it with the
following:

            "5.   Benefit Payments

                 (a)   Monthly Payments.

                  With respect to a Participant who has not made a valid lump
                  sum election in accordance with subparagraph (b) hereof,
                  benefits shall be paid in monthly disbursements or at such
                  other periods as the Committee may determine in each case.
                  Notwithstanding the foregoing, if at the time of the
                  Participant's termination of employment, the present value of
                  the benefit of a Participant, whether payable as a service
                  benefit, a deferred benefit, or a survivor's benefit, is less
                  than $20,000, such benefit shall be paid in the form of a
                  single lump sum payment which is the actuarial equivalent of
                  the benefit otherwise payable calculated in accordance with
                  the provisions of subparagraph (c) hereof.

                 (b) Lump Sum Benefit Payment.

                  A Participant may elect to receive his benefit hereunder,
                  whether payable as a service benefit, a deferred benefit or a
                  survivor's benefit, paid in the form of a single lump sum
                  payment which is the actuarial equivalent of the benefit
                  otherwise payable calculated in accordance with the provisions
                  of subparagraph (c) hereof;

<PAGE>

            provided, any such election must be made in accordance with
            procedures established by the Company and must be on file with the
            Company, or its designee, for at least 12 consecutive calendar
            months prior to the Participant's termination of employment or death
            in order to be valid and in effect.

            (c) Lump Sum Calculation.

            Benefits payable in a lump sum in accordance with the Plan shall be
            the amount that is the actuarial present value of the Participant's
            benefit and shall be determined using (i) the applicable interest
            rate then in effect under the Pension Plan, and (ii) the applicable
            mortality table then in effect under the Pension Plan."

                                       5.

      Effective as of January 1, 2004, Section 5 of the Plan is hereby amended
by adding to subsection 6 the following:

            "Notwithstanding the preceding sentence, a Participant (other than
            an Executive who is a Band BB officer or above) who has made a valid
            lump sum election in accordance with subparagraph 5(b) of this
            Section 6 shall receive the lump sum payment of his benefit as soon
            as administratively feasible following his date of retirement or
            other termination of employment. An Executive who is a Band BB
            officer or above and who has made a valid lump sum election shall
            receive the lump sum payment (including interest accrued annually at
            the applicable interest rate in effect under the Pension Plan) as
            soon as administratively feasible following the date that is 2 years
            following his date of retirement or other termination of
            employment."

                                       6.

      Any other provisions of the Plan not amended herein shall remain in full
force and effect.

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