Document:

Unassociated Document

    Exhibit
10.1(a)

    

    PARK
NATIONAL CORPORATION

    EMPLOYEES
STOCK OWNERSHIP PLAN

     

    Effective
Date: January 1, 2002

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    PARK
NATIONAL CORPORATION

    EMPLOYEES
STOCK OWNERSHIP PLAN

    

    TABLE OF
CONTENTS

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          	 
      	
                                                                  Page No.

                                                                
	 
      	 
      
	
                                                                  PARTICIPATION

                                                                	
                                                                  2

                                                                
	 
      	 
      
	
                                                                  CONTRIBUTIONS

                                                                	
                                                                  4

                                                                
	 
      	 
      
	
                                                                  LIMITATIONS ON ALLOCATIONS

                                                                	
                                                                  8

                                                                
	 
      	 
      
	
                                                                  PARTICIPANTS’ ACCOUNTS AND PLAN
      INVESTMENTS

                                                                	
                                                                  17

                                                                
	 
      	 
      
	
                                                                  VALUATION OF PARTICIPANTS’
      ACCOUNTS

                                                                	
                                                                  19

                                                                
	 
      	 
      
	
                                                                  RETIREMENT BENEFITS

                                                                	
                                                                  20

                                                                
	 
      	 
      
	
                                                                  DEATH BENEFITS

                                                                	
                                                                  21

                                                                
	 
      	 
      
	
                                                                  DISABILITY BENEFITS

                                                                	
                                                                  23

                                                                
	 
      	 
      
	
                                                                  IN-SERVICE AND TERMINATION
      BENEFITS

                                                                	
                                                                  24

                                                                
	 
      	 
      
	
                                                                  VESTING

                                                                	
                                                                  27

                                                                
	 
      	 
      
	
                                                                  PAYMENT OF BENEFITS

                                                                	
                                                                  28

                                                                
	 
      	 
      
	
                                                                  TRUST AGREEMENT

                                                                	
                                                                  37

                                                                
	 
      	 
      
	
                                                                  PLAN ADMINISTRATION

                                                                	
                                                                  38

                                                                
	 
      	 
      
	
                                                                  AMENDMENT AND TERMINATION

                                                                	
                                                                  39

                                                                
	 
      	 
      
	
                                                                  DISTRIBUTIONS ON PLAN
      TERMINATION

                                                                	
                                                                  40

                                                                
	 
      	 
      
	
                                                                  CREDITORS OF PARTICIPANTS

                                                                	
                                                                  41

                                                                
	 
      	 
      
	
                                                                  CLAIMS PROCEDURES

                                                                	
                                                                  42

                                                                
	 
      	 
      
	
                                                                  TOP HEAVY RULES

                                                                	
                                                                  45

                                                                
	 
      	 
      
	
                                                                  MISCELLANEOUS

                                                                	
                                                                  49

                                                                
	 
      	 
      
	
                                                                  ADOPTION BY AFFILIATE OR PARTICIPATING
      EMPLOYER

                                                                	
                                                                  52

                                                                
	 
      	 
      
	
                                                                  VOTING RIGHTS

                                                                	
                                                                  54

                                                                
	 
      	 
      
	
                                                                  DEFINITIONS

                                                                	
                                                                  55

                                                                

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    
      
         

      

      
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    PARK
NATIONAL CORPORATION

    EMPLOYEES
STOCK OWNERSHIP PLAN

    

    Park National Corporation hereby
adopts, as of the Effective Date, the following amended and restated plan for
the exclusive benefit of the Employer’s eligible Employees and, where
applicable, the Beneficiaries of such Employees.  It is intended that
the Plan, together with the Trust Agreement, will comply with the applicable
provisions of the Internal Revenue Code of 1986, as amended; and the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”).  The
Plan supersedes and replaces the Park National Corporation Employees Voluntary
Salary Deferral Plan and Trust amended and restated effective January 1,
1997, and on and after the Effective Date, is intended to be an employee stock
ownership plan within the meaning of Section 4975(e)(7) of the
Code.

    

    The Plan was originally effective as of
January 1, 1985, and has been amended from time to time
thereafter.  The Plan is being amended and restated for all applicable
laws, regulations and other guidance, as set forth in Notice 2007-94, in order
to satisfy the requirements of a “Cycle C” determination letter filing with the
Internal Revenue Service.

    

    Unless the terms of this amended and
restated Plan otherwise provide, the vested interest and amount of benefit
payable to a Participant who has terminated employment from the Employer is
determined by reference to the provisions of the Plan in existence on the date
of such Participant’s termination of employment.

    
      
         

      

      
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    SECTION 1 -
PARTICIPATION

    

    1.01               Eligibility
Requirements

    

    Each Employee of the Employer will
commence participation in the Plan on the Entry Date coinciding with or first
following the date on which he is credited with a Year of Eligibility Service
(as defined in Section 1.02) and has attained age 18.

    

    Notwithstanding the foregoing, an
Employee who was a Participant in the Plan immediately prior to the Effective
Date of this amended and restated Plan will remain a Participant on the
Effective Date.

    

    An individual who met the eligibility
requirements specified above with the Employer or an Affiliate prior to being
classified by the Employer as an Employee will commence participation in the
Plan on the Entry Date immediately following the date he became an
Employee.

    

    An individual who ceases to be
classified by the Employer as an Employee but who remains actively employed by
the Employer or an Affiliate will not be treated as being eligible to receive a
distribution from the Plan pursuant to Section 9.01 until his severance from
employment from the Employer and all Affiliates.

    

    1.02               Service for
Eligibility

    

    An Employee will be credited with a
“Year of Eligibility Service” on the last day of the 12-month period beginning
on his Employment Commencement Date or, to the extent necessary, the last day of
any Plan Year thereafter, beginning with the Plan Year that includes the first
anniversary of the Employee’s Employment Commencement Date, in which the
Employee is credited with at least 1,000 Hours of Service.

    

    1.03               Effect of Rehire on Prior
Eligibility Service

    

    If a former Participant does not have a
nonforfeitable right to any portion of his Account at the time of his severance
from employment from the Employer and all Affiliates, the Years of Eligibility
Service earned by such former Participant will be taken into account in
determining whether such former Participant has satisfied the eligibility
provisions of Section 1.01 after his rehire except as provided
below.  If a Participant’s number of consecutive One-Year Breaks in
Service equals or exceeds the greater of five or the aggregate number of his
Years of Eligibility Service earned prior to his severance from employment, the
Participant’s service will be disregarded in determining whether his service has
satisfied the eligibility provisions of Section 1.01 after his
rehire.  Such aggregate number of Years of Eligibility Service will
not include any Years of Service disregarded under the preceding sentence by
reason of any prior consecutive One-Year Breaks in Service.

     

    
      
         

      

      
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    If a former Participant’s Years of
Eligibility Service are disregarded pursuant to the preceding paragraph, such
former Participant will again be required to meet the eligibility requirements
set forth in Section 1.01 prior to becoming eligible to participate in the
Plan.  If such former Participant’s Years of Eligibility Service
before his severance from employment may not be disregarded pursuant to the
preceding paragraph, such former Participant will be eligible to participate in
the Plan immediately upon his reemployment with the Employer, provided that he
is classified as an Employee on the date of his reemployment.

    

    A former Participant who had a
nonforfeitable right to any portion of his Employer Contributions made at the
time of his severance from employment from the Employer and all Affiliates will
participate in the Plan immediately upon his reemployment with the Employer,
provided that he is classified as an Employee on the date of his
reemployment.

    

    For the purpose of this Section 1.03,
the 12-month period used to determine a former Participant’s One-Year Breaks in
Service is the 12-month period used to determine a Year of Eligibility Service,
as defined in Section 1.02.

    

    A rehired Employee will be credited
with Hours of Service for all periods of Qualified Military Service in
accordance with the Uniformed Services Employment and Reemployment Rights
Act.

    

    1.04              Service With Prior
Employer

    

    For the
purpose of satisfying the service requirement contained in Section 1.01, the
Sponsor may provide that certain designated Employees will receive credit for
their service with an employer prior to the date such employer was acquired (or
the assets of such employer were acquired) and became employed by the Employer
or an Affiliate.  Such grants of prior service will be specified in
either an action of the Board of Directors of the Sponsor, in some other
document approved by an officer of the Sponsor or as otherwise provided in this
Plan.

     

    
      
         

      

      
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    SECTION 2 -
CONTRIBUTIONS

    

    2.01              Section 401(k)
Contributions

    

    (a)           A
Participant is entitled to make or modify an Enrollment Election as of the first
payroll period coinciding with or next following the first day of any calendar
year quarter.  The Enrollment Election will provide for the reduction
of not more than 25% of the Compensation of the Participant and a corresponding
contribution of such amount to the Plan by the Employer as a Section 401(k)
Contribution that will be allocated to the Participant’s Section 401(k)
Account.  The Committee may permit a Participant to make a special
Enrollment Election with regard to all or a portion of the payment of a bonus or
other single sum payment.  Notwithstanding the foregoing, Section
401(k) Contributions may be discontinued as of the last day of any payroll
period.  The Committee may establish rules and regulations that
provide for the receipt of such Enrollment Election not later than the dates
specified by the Committee in order for such election to be processed by the
dates specified above.  The Committee may further limit the amount of
Section 401(k) Contributions a Participant may make in order to comply with the
limits that are set forth in Section 3.

    

    (b)           The
Employer may in its sole discretion make fully vested qualified non-elective
contributions to the Plan that will be allocated to separate accounts of one or
more Participants who are Non-Highly-Compensated Employees in such amounts as
the Employer directs, but limited to amounts that will not be treated as
disproportionate contributions as defined in Treasury Regulations
1.401(k)-2(a)(6)(iv) or 1.401(m)-2(a)(6)(v).  Such contributions will
be taken into account in computing Participants’ deferrals and contribution
percentages as further described in Section 3.  The amounts allocated
to each such Participant pursuant to this subsection (b) may not be distributed
prior to the date the Plan permits a Participant’s Section 401(k) Contributions
to be distributed (except such amounts may not be distributed on account of
financial hardship).  Qualified non-elective contributions shall be
made to the Plan not later than by the end of the 12-month period immediately
following the Plan Year to which such contributions relate.  The Plan
may also treat fully vested Employer Contributions allocated to Participants in
Section 2 that meet the requirements of Treasury Regulation 1.401(k)-2(a)(6) as
qualified non-elective contributions to the Plan.  This subsection (b)
will not apply in any year in which the Plan is subject to the “prior year”
testing method, if such method is set forth in Section 3.03(c).

    

    (c)           An
actively employed Participant who is prevented from making additional Section
401(k) Contributions to the Plan for a Plan Year as a result of a Plan
limitation regarding the amount of Section 401(k) Contributions the Participant
may make for a Plan Year, the limitations imposed by Section 3.01 or 3.03(a),
Section 3.03(b) or any other applicable limitation, and who is or will be age 50
or older as of the last day of any calendar year beginning on and after
January 1, 2002 may make an additional contribution to the Plan,
hereinafter referred to as a “catch-up contribution.”

    

    The amount of a catch-up contribution
made by a Participant shall not exceed the dollar limitation set forth in Code
Section 414(v)(2)(B) [as adjusted in accordance with Code Section 414(v)(2)(C)]
or the amounts described in Code Section 414(v)(2)(A).

     

    
      
         

      

      
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    Catch-up contributions shall not be
subject to the otherwise applicable limitations described in Code Sections
401(a)(30), 401(k)(3), 402(h), 404(h), 415 or any other applicable limitation
for the relevant Plan or calendar year for which such contribution is
credited.

    

    The provision of this subsection shall
be applicable on an equivalent basis to all Participants in the Plan who are
eligible to make catch-up contributions, and to similarly situated participants
in any other plan sponsored by an Employer or Affiliate that provides for
elective deferrals.

    

    (d)           Section
401(k) Contributions will be contributed by the Employer to the Trustee as soon
as practicable after the date the amounts otherwise would have been paid to the
Participant but not later than the time period set forth in Department of Labor
Regulation 2510.3-102.

    

    2.02              Matching
Contributions

    

    (a)           The
Employer will make Matching Contributions to the Matching Contribution Account
of each Participant for whom a Section 401(k) Contribution is made during the
Plan Year in accordance with subsection (b) below.  Matching
Contributions will be allocated on a payroll period basis.

    

    (b)           The
amount of Matching Contribution will equal the Matching Contribution rate or
rates in effect during the Plan Year as applied to the Participant’s Section
401(k) Contributions for the Plan Year or such greater or lesser amounts as the
Sponsor determines prior to the date on which the Matching Contribution is
required to be made.  The Sponsor may establish for any Plan Year a
Matching Contribution rate which consists of (i) the maximum number of
percentage points of Compensation for which Matching Contributions will be made;
and (ii) the rate, or the method for determining the rate, at which
Matching Contributions will be made with respect to such percentage points of
Compensation.  For the 2002 Plan Year, the amount of such Matching
Contribution shall equal 50% of the Participant’s Section 401(k) Contributions,
provided that amounts in excess of 15% of the Participant’s Compensation shall
not be matched.  In addition, Section 401(k) Contributions that are
treated as catch-up contributions shall not be matched.

    

    (c)           The
Employer may in its sole discretion make fully vested qualified non-elective
contributions to the Plan that will be allocated to the Section 401(k) Accounts
of one or more Participants who are Non-Highly-Compensated Employees in such
amounts as the Employer directs, but limited to amounts that would not be
treated as disproportionate contributions as defined in Treasury Regulation
1.401(k)-2(a)(6)(iv).  The amounts allocated to each such Participant
pursuant to this subsection (b) may not be distributed prior to the date the
Plan permits a Participant’s Section 401(k) Contributions to be distributed
(except such amounts may not be distributed on account of financial
hardship).  Such contributions will be taken into account in computing
a Participant’s deferral percentage as further described in Section
3.  Qualified non-elective contributions shall be made to the Plan not
later than by the end of the 12-month period immediately following the Plan Year
to which such contribution relates.  The Plan may also treat fully
vested Employer Contributions allocated to Participants in Section 2 that meet
the requirements of Treasury Regulation 1.401(k)-2(a)(6) as qualified
non-elective contributions.  This subsection (c) will not apply in any
year in which the Plan is subject to the “prior year” testing method, if such
method is set forth in Section 3.04(b).

     

    
      
         

      

      
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    2.03              Rollover
Contributions

    

    Subject to the Committee’s reasonable
determination that a Rollover Contribution meets the requirements of Section
402(c) of the Code, an active Employee may contribute to the Plan, as a Rollover
Contribution, a distribution from an “eligible retirement plan” within the
meaning of Code Section 402(c)(8)(B).  Amounts so rolled over will be
credited to and maintained in the Participant’s Rollover
Account.  Amounts transferred directly from another qualified pension
or profit sharing plan to the Plan pursuant to Section 401(a)(31) of the Code
will be treated as a Rollover Contribution.  Effective January 1,
2002, an Employee, prior to the date he becomes a Participant, may also make a
Rollover Contribution and will be treated as a Participant with respect to his
Rollover Account.

    

    Notwithstanding the foregoing,
after-tax contributions (including “Roth” contributions from a Roth IRA or Roth
account from an eligible retirement plan) may not be rolled over to the
Plan.

    

    2.04              Direct
Transfers

    

    The Committee may accept plan-to-plan
transfers from the accounts of another qualified plan, or elective transfers,
within the meaning of Treasury Regulation 1.411(d)-4,
Q&A-3(b).  To the extent required by Code Section 411(d)(6), the
Plan will preserve the forms of benefits relating to that portion of a
Participant’s Account acquired pursuant to this section and will specify such
forms in the Plan or an amendment to the Plan.  Amounts received by
this Plan will be allocated to a Participant’s transfer account or the accounts
specified by the Committee.

    

    2.05              Top Heavy Minimum Required
Contribution

    

    If, for any Plan Year, the Plan is a
“Top Heavy Plan” [as defined in Section 18.01(f)], the Employer may be required
to make a contribution for the Plan Year to the Accounts of certain “Non-Key
Employees” [as defined in Section 18.01(b)].

    

    2.06              Certain Make-up
Contributions

    

    (a)           A
Participant who is absent from active employment with the Employer by reason of
service in the Uniformed Services will be permitted, upon rehire, to the extent
such Participant’s reemployment rights under the Plan are protected by the
Uniformed Services Employment and Reemployment Rights Act, to make additional
Section 401(k) Contributions (hereinafter referred to as “make-up
contributions”) of an amount not greater than the maximum amount of
contributions the Participant would have been permitted to make had the
Participant been employed during his period of Qualified Military
Service.  Such a Participant will be permitted to make make-up
contributions during a period that begins on the date the Participant returned
to active employment with the Employer and will end on the date that is the
lesser of:  (i) the product of 3 and the period of Qualified
Military Service immediately prior to his rehire; and (ii) 5
years.

     

    
      
         

      

      
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    The Employer will make Matching
Contributions to the Matching Contribution Account of the Participant equal to
the amount of Matching Contributions that would have been allocated to the
Participant had the make-up contributions been made during the period of
Qualified Military Service.  No earnings will be credited by the Plan
with respect to make-up contributions or Matching Contributions
until such contributions are received by the Trust.

    

    (b)           Any
make-up contributions will not be subject to the limitations set forth in
Sections 3.01 and 3.03(a) of the Plan with respect to the year such amounts
were made; however, such amounts will be subject to the limitations set forth in
Sections 3.01 and 3.03(a) of the Plan with respect to the year in which such
amounts relate in accordance with rules promulgated by the Secretary of the
Treasury.  In addition, a Participant’s ability to make contributions
pursuant to this section will have no effect on the determination of a
Participant’s deferral percentage determined pursuant to Section 3.03(c) or
contribution percentage pursuant to Section 3.04(b).

    

    (c)           “Uniformed
Services” has the meaning as defined in Chapter 43 of Title 38 of the United
States Code.

    
      
         

      

      
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    SECTION 3 - LIMITATIONS ON
ALLOCATIONS

    

    3.01              Limitations on Annual
Additions

    

    Annual Additions to each Participant’s
Account will not exceed the lesser of (a) the amount determined by
reference to Code Section 415(c)(1)(A); or (b) 100% of the Participant’s
“Section 415 Limit Compensation” paid or made available for the applicable
Limitation Year.  If the Annual Addition allocated to a Participant’s
Account for a Limitation Year is in excess of the limitations set forth in this
paragraph, such excess will be considered an “excess Annual
Addition.”

    

    For purposes of this section, Section
415 Limit Compensation means wages, within the meaning of Section 3401(a) of the
Code, and all other payments of compensation to an Employee by the Employer
during the Plan Year (in the course of the Employer’s trade or business) for
which the Employer is required to furnish the Employee a written statement under
Sections 6041(d), 6051(a)(3) and 6052 of the Code.  Compensation must
be determined without regard to any rules under Section 3401(a) of the Code that
limit the remuneration included in wages based on the nature or location of the
employment or the services performed [such as the exception for agricultural
labor in Section 3401(a)(2) of the Code].  Effective for Limitation
Years commencing after December 31, 2001, Section 415 Limit Compensation
shall not include contributions to a Participant’s Account for medical benefits
[within the meaning of Section 401(h) or Section 419(f)(2) of the Code] after
the Participant’s separation from service, notwithstanding the fact that such
contributions may otherwise be treated as Annual Additions.

    

    For the purpose of this section, the
Section 415 Compensation will include “elective deferrals,” as such term is
defined by Section 402(g)(3) of the Code, and amounts contributed or deferred at
the election of the Participant by the Employer that are not includable in the
gross income of the Participant by reason of Section 125, Section 132(f)(4) or
Section 457 of the Code.

    

    For Limitation Years beginning in 2005
or later, payments made within 21⁄2 months after “severance from employment”
[within the meaning of Code Section 401(k)(2)(B)(i)(I)] from the Employer are
included in the amount of a Participant’s Section 415 Compensation if such
amounts are payments that, absent a severance from employment (i) would
have been paid to the Employee had the Employee continued in employment with the
Employer and are regular compensation for services during the Employee’s regular
working hours; (ii) are compensation for services outside the Employee’s
regular working hours (such as overtime or shift differential), commissions,
bonuses or other similar compensation; or (iii) are payments for accrued
bona fide sick, vacation or other leave, but only if the Employee would have
been able to use the leave if employment had continued.  Any payments
not described above are not considered Section 415 Compensation if paid after
severance from employment, even if such amounts are paid within 21⁄2 months after
severance from employment, except for payments to an individual who does not
currently perform services for the Employer by reason of Qualified Military
Service to the extent the payments do not exceed the amounts the individual
would have received if the individual had continued to perform services for the
Employer rather than entering into Qualified Military Service.

     

    
      
         

      

      
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    3.02              Corrective
Adjustments

    

    If, as a result of a reasonable error
in estimating a Participant’s annual compensation, a reasonable error in
determining the amount of Section 401(k) Contributions that may be made under
the limits of Section 415, or under other limited facts and circumstances that
the Commissioner will specify, an excess Annual Addition exists, such excess
will be disposed of by the distribution of Section 401(k) Contributions with the
corresponding distribution of the portion of any Matching Contribution
attributable to the Section 401(k) Contributions and any income on such
contributions made by the Participant during the applicable Plan Year, then by
reducing contributions made by the Employer and allocated to the Participant’s
Account for the applicable Limitation Year in the next and succeeding Limitation
Years until such excess is reduced.  If an excess Annual Addition
exists at the end of the Limitation Year and the Participant was not covered by
the Plan as of the last day of such Limitation Year, such excess will be treated
as a forfeiture to be held unallocated in a suspense account and applied to
reduce contributions made by the Employer for all remaining Participants in the
next and succeeding Limitation Years prior to any contributions being made by
the Employer to the Plan for such year.

    

    If an excess Annual Addition exists as
a result of a Participant being a participant in another defined contribution
plan maintained by the Employer or Affiliate, the excess Annual Addition will be
treated in accordance with this Section 3.02 unless treated as an excess annual
addition in the other plan.

    

    3.03              Maximum Section 401(k)
Contributions for Highly-Compensated Employees

    

    (a)           For
each calendar year, the Section 401(k) Contributions made by a Participant,
excluding amounts treated as excess Annual Additions pursuant to Section 3.02 or
amounts treated as Catch-up Contributions, shall not exceed the dollar
limitation set forth in Section 402(g)(1) of the Code, as adjusted by Section
402(g)(4) of the Code.  Catch-up Contributions made by a Participant
shall not exceed the dollar limitation set forth in Code Section 414(v)(2)(B)
[as adjusted in accordance with Code Section 414(v)(2)(C)] or the limitation
described in Code Section 414(v)(2)(A)(ii).

    

    If a Participant’s Section 401(k)
Contributions (including Catch-up Contributions), combined with elective
deferrals to other plans that are required to be aggregated with this Plan for
the purpose of determining the limitations set forth in the preceding paragraph,
exceed either of the limitations set forth in the preceding paragraph, the
Participant may assign to the Plan any portion of the amount in excess of the
applicable limitation (“excess deferrals”) by notifying the Committee in writing
of the amount to be treated as an excess deferral by March 1st of the year
following the calendar year in which the excess relates.  The amount
of excess deferrals that is required to be distributed to a Participant for a
taxable year will be reduced by any excess contributions [as defined in
subsection (g) below] previously distributed to the Participant for the Plan
Year beginning with or within the taxable year.  Notwithstanding the
foregoing, a Participant is not required to notify the Plan with regard to
excess deferrals that arose solely from Section 401(k) Contributions and
Catch-up Contributions to the Plan and elective deferrals to other plans
sponsored by the Employer or its Affiliates.  The amount of excess
deferrals, and allocable income, will be distributed to the Participant no later
than April 15 of the calendar year first following the calendar year in
which the excess deferrals arose.  For this purpose, “income” will be
determined by including the Participant’s share of the allocable gain or loss on
the deferrals made by the Participant during the calendar year in which such
excess is attributable.  Commencing on and after January 1, 2006,
to the extent required by law, gain or loss shall include the allocable gain or
loss for the period between the end of the taxable year and the date of
distribution to the Participant to the extent that the Participant would have
otherwise received such gain or loss for such period if the Participant’s entire
Account were distributed.  The allocable gain or loss will be
calculated under one of the methods set forth in Treasury Regulation
1.402(g)-1(e)(5)(ii) or (iii), with one such method being applied consistently
to all affected Participants.

     

    
      
         

      

      
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    (b)           For
a Plan Year, the deferral percentage for eligible Highly-Compensated Employees
will not exceed the greater of (i) 125% of the deferral percentage for
eligible Non-Highly-Compensated Employees; or (ii) the lesser of
(A) 200% of the deferral percentage for eligible Non-Highly-Compensated
Employees; or (B) the deferral percentage for eligible
Non-Highly-Compensated Employees plus two percentage points.  The
calculation shall be computed to the nearest hundredth of a percentage
point.  The Plan will not fail to satisfy the requirements of this
subsection (b) to the extent that all eligible employees under the Plan for a
Plan Year are Highly-Compensated Employees.  The limitation of this
subsection (b) shall apply separately to groups of Highly-Compensated and
Non-Highly-Compensated Employees (i) if such employees are required by Code
Section 401(k) or applicable regulations thereunder to be disaggregated or
(ii) to the extent such groups may permissibly be disaggregated and the
Committee elects to apply the deferral percentage test separately to such groups
of employees.  Plans may be aggregated in accordance with this
subsection only if they have the same deferral percentage testing
method.  The aggregation and restructuring rules of Treasury
Regulation 1.401(k)-1(b)(4) are hereby incorporated by reference.

    

    If the Committee elects to apply Code
Section 410(b)(4)(B) in determining whether the cash or deferred arrangement
meets the requirements set forth in Code Section 410(b)(1), the Committee may
exclude from consideration, in determining whether the arrangement meets the
requirements of this subsection (b), all eligible Participants (other than
Highly-Compensated Employees) who have not met the minimum age and service
requirements of Code Section 410(a)(1)(A).  The Plan may also be
disaggregated into separate plans where deferral percentages are calculated
separately for all eligible Participants who have completed the minimum age and
service requirements of Code Section 410(a)(1)(A) and for all eligible
Participants who have not completed such minimum age and service
requirements.

    

    (c)           For
the purpose of this subsection (c), the “deferral percentage” for eligible
Highly-Compensated Employees and eligible Non-Highly-Compensated Employees is
the average of the ratios (calculated separately for each person in either the
Highly- or Non-Highly-Compensated Employee group) of (i) the Section 401(k)
Contributions paid and allocated under the Plan on behalf of each such eligible
Employee for the applicable plan year to the extent such amounts are not
contingent on the participation or performance of services after being paid or
allocated (as adjusted in accordance with the following sentences) divided by
(ii) the Employee’s Compensation earned during the period during the Plan
Year that the Employee was a Participant.  Section 401(k)
contributions (excluding Catch-up Contributions) will be included in the
deferral percentage for a Plan Year only if such amounts relate to Compensation
that either would have been received by the eligible Employee in the Plan Year
(but for the Enrollment Election) or is attributable to services performed by
such Employee in the Plan Year and would have been received by the Employee
within 21⁄2 months after the close of the Plan Year (but for the Enrollment
Election).  Amounts described in clause (c)(i) above shall exclude:
(A) amounts treated as excess deferrals of Non-Highly-Compensated
Employees; (B) Section 401(k) Contributions not paid to the Trust within 12
months after the end of the applicable Plan Year; (C) Catch-up
Contributions to the extent that such amounts exceed an Employer-provided limit
or statutory limit applicable to Section 401(k) Contributions; and
(D) other amounts not meeting the requirements described in Treasury
Regulation 1.401(k)-2(a)(4)(i).  Amounts described in clause (c)(i)
above shall include: (I) qualified non-elective contributions contributed
in accordance with Section 2 of the Plan but only to the extent that the current
Plan Year method is selected below and Matching Contributions that the
Committee elects to treat as Section 401(k) Contributions; and (II) excess
deferrals of Highly-Compensated Employees that arise solely from Section 401(k)
Contributions made under this Plan or other plans of the Employer.

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    The calculation shall be computed to
the nearest hundredth of a percentage point.  Catch-up Contributions
deferred by a Participant in accordance with Section 414(v) of the Code, Section
401(k) Contributions recharacterized by the Plan as Catch-up Contributions in
accordance with subsection (g) below, and Section 401(k) Contributions made for
periods of Qualified Military Service will also not be included in determining a
Participant’s deferral percentage.  The deferral percentage for a
Participant who is a Highly-Compensated Employee for the Plan Year and who is
eligible to have elective deferrals allocated under two or more plans that are
maintained by the Employer and which are not required to be disaggregated shall
be determined as if such elective deferrals are made under a single
arrangement.  If the plans mentioned in the preceding sentence have
different plan years, then all elective contributions made to all such plans
during the Plan Year being tested shall be treated as Section 401(k)
Contributions under this Plan without regard to the plan years of the other
plans.

    

    For the purpose of this subsection (c),
if, for any Plan Year, the definition of “Compensation,” as defined in Section
21 does not meet the requirements of Code Section 414(s) and Treasury Regulation
1.414(s)-1, the definition of Section 415 Compensation set forth in Section
3.01(a) shall be substituted.

    

    For the purpose of this subsection (c),
“applicable plan year” means, for the group of eligible Highly-Compensated
Employees described in subsection (b) above, the current Plan Year; and for the
group of eligible Non-Highly-Compensated Employees described in subsection (b)
above, either the current Plan Year or the immediately preceding Plan Year, as
specified below.  To the extent the Plan provides that the applicable
Plan Year is the current Plan Year for the eligible group of
Non-Highly-Compensated Employees, the Sponsor may only amend such testing method
to provide for testing based on the immediately preceding Plan Year if the Plan
has used the current Plan Year method for each of the preceding five Plan Years
(or if less, the number of Plan Years that the Plan has been in existence) or
if, as a result of a merger or acquisition described in Code Section
410(b)(6)(D)(i), the Employer maintains both a plan using the current Plan Year
method and the immediately preceding Plan Year method, and the change is made
within the transition period described in Code Section
410(b)(6)(ii).  The testing method selected in this paragraph for the
eligible group of Non-Highly-Compensated Employees is the current Plan Year
method.

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    (d)           In
determining whether the Plan satisfies the deferral percentage test set forth in
subsection (c) above, all Section 401(k) Contributions that are made under any
other plan or plans that are required to be aggregated with the Plan for the
purpose of satisfying Code Sections 401(k), 401(a)(4) or 410(b) shall be
included in the deferral percentage test.

    

    (e)           For
the purpose of this section, an Employee will be treated as either an eligible
Highly-Compensated Employee or an eligible Non-Highly-Compensated Employee for a
Plan Year if such person was eligible to make Section 401(k) Contributions to
the Plan for the Plan Year.

    

    (f)           The
Plan will not be treated as failing to meet the requirements of this section for
any Plan Year if, before the close of the following Plan Year (and if practical,
to avoid certain excise taxes before the close of the first 21⁄2 months of the
following Plan Year), the amount of excess contributions, and the income
allocable to such contributions, is distributed.  For this purpose,
“income” allocable to excess contributions will be determined by including the
Participant’s share of the allocable gain or loss on such Section 401(k)
Contributions for the Plan Year in which the excess contribution
arose.  Effective for the Plan Year commencing on or first following
January 1, 2006, but not any Plan Year thereafter, the allocable gain or
loss shall include the period between the end of the Plan Year and the date of
distribution to the Participant to the extent that the Participant would have
otherwise received such gain or loss for such period if the Participant’s entire
Account were distributed.  The allocable gain or loss will be
calculated under one of the methods set forth in Treasury Regulation
1.401(k)-2(b)(2)(iv), with one such method being applied consistently to all
affected Participants.

    

    (g)           Any
distribution of excess contributions for any Plan Year will be made to
Highly-Compensated Employees determined by allocating such amounts to the
Highly-Compensated Employees with the largest deferral percentage dollar
amounts, beginning with the Highly-Compensated Employee with the largest amount
and continuing in descending order to the Highly-Compensated Employee with the
next highest dollar amount, etc., until all of the excess contributions have
been allocated.  For purposes of this section, the term “excess
contributions” will mean, with respect to any Plan Year, the excess of
(i) the amount of contributions made on behalf of Highly-Compensated
Employees for such Plan Year which are included in the deferral percentage, over
(ii) the maximum amount of such contributions permitted under subsection
(b) above, determined by hypothetically reducing deferrals made on behalf of
Highly-Compensated Employees in order of their deferral percentages, beginning
with the highest of such percentages.  Excess contributions and income
allocated to a Participant will be reduced by excess deferrals previously
distributed to the Participant for the taxable year ending with or within the
Plan Year in which such excess contributions relate.  Notwithstanding
the foregoing, the Plan shall first recharacterize excess contributions to be
distributed to a Highly-Compensated Employee as Catch-up Contributions made by
such Highly-Compensated Employee to the Plan, and shall treat such excess
contributions so recharacterized as being distributed in accordance with this
subsection to the extent the amounts so recharacterized do not exceed the
applicable limitations on Catch-up Contributions set forth in Section 414(v) of
the Code.

     

    
      
         

      

      
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              3.04

            	
              Maximum Matching
      Contributions for
      Highly-Compensated Employees

            

    

    

    (a)           For
a Plan Year, the contribution percentage for eligible Highly-Compensated
Employees will not exceed the greater of (i) 125% of the contribution
percentage for eligible Non-Highly-Compensated Employees; or (ii) the
lesser of (A) 200% of the contribution percentage for eligible
Non-Highly-Compensated Employees; or (B) the contribution percentage for
eligible Non-Highly-Compensated Employees plus two percentage
points.  The calculation shall be computed to the nearest hundredth of
a percentage point.  The Plan will not fail to satisfy the
requirements of this subsection (a) to the extent that all eligible employees
under the Plan for a Plan Year are Highly-Compensated Employees.  The
limitation of this subsection (a) shall apply separately to groups of
Highly-Compensated and Non-Highly-Compensated Employees if (i) such
employees are required by Code Section 401(m) or applicable regulations
thereunder to be disaggregated or (ii) to the extent such groups may be
permissibly disaggregated and the Committee elects to apply the contribution
percentage test separately to such groups of employees.  Plans may be
aggregated in accordance with this subsection only if they have the same
contribution percentage testing method.  The aggregation and
restructuring rules of Treasury Regulation 1.401(m)-1(a)(4) are hereby
incorporated by reference.  The requirements of this subsection shall
be treated as being satisfied if contributions are made for collectively
bargained employees and the plan (or portion of such plan) automatically
satisfies Section 410(b) of the Code.

    

    If the Committee elects to apply Code
Section 410(b)(4)(B) in determining whether the contributions described in this
section meet the requirements set forth in Code Section 410(b)(1), the Committee
may exclude from consideration, in determining whether the arrangement meets the
requirements of this subsection (a), all eligible Participants (other than
Highly-Compensated Employees) who have not met the minimum age and service
requirements of Code Section 410(a)(1)(A).  The Plan may also be
disaggregated into separate plans whereby contribution percentages are
determined separately for all eligible Participants who have completed the
minimum age and service requirements of Code Section 410(a)(1)(A) and for all
eligible Participants who have not completed such minimum age and service
requirements.

    

    (b)           For
purposes of this section, the “contribution percentage” for eligible
Highly-Compensated Employees and eligible Non-Highly-Compensated Employees is
the average of the ratios (calculated separately for each person in either the
Highly- or Non-Highly-Compensated Employee group) of (i) the Matching
Contributions (including qualified matching contributions and qualified
non-elective contributions contributed to the Plan which are not used to satisfy
the deferral percentage test but only to the extent that the current Plan Year
method is selected below) paid under the Plan on behalf of each such eligible
Employee for the applicable plan year, and the portion of a Participant’s
Section 401(k) Contributions, if any, that are not required to be used to
satisfy the deferral percentage test, divided by (ii) the Employee’s
Compensation for a period during the Plan Year that the Employee was a
Participant.  The calculation shall be computed to the nearest
hundredth of a percentage point.  If the Plan uses the immediately
preceding year testing method and experiences a coverage change during the Plan
Year, the contribution percentage for the Plan Year is the weighted average of
the prior year subgroups, determined in accordance with Treasury Regulation
1.401(m)-2(c)(4).

     

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    Notwithstanding the foregoing, the
following Matching Contributions shall not be taken into account in determining
a Participant’s contribution percentage:

    

    
      	
               
      

            	
              (i)

            	
              Matching
      Contributions attributable to a Participant’s period of Qualified Military
      Service;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Matching
      Contributions that are forfeited in order to correct excess aggregate
      contributions or because the contributions to which they relate are excess
      deferrals, excess contributions or excess aggregate contributions;
      and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Disproportionate
      matching contributions [as defined in Treasury Regulation
      1.401(m)-2(a)(5)(ii)] and disproportionate qualified non-elective
      contributions [as defined in Treasury Regulation
      1.401(m)-2(a)(6)(v)].

            

    

    

    Notwithstanding
the foregoing, Forfeitures, if any, which are allocated to a Participant’s
Matching Contribution Account shall be taken into account in determining a
Participant’s contribution percentage.

    

    A
contribution percentage will be calculated for each Participant who is eligible
to have the contributions described in this subsection (b) allocated to his
Account.

    

    The contribution percentage for a
Participant who is a Highly-Compensated Employee for the Plan Year and who is
eligible to have Matching Contributions allocated under two or more plans that
are maintained by the Employer and which are not required to be disaggregated
shall be determined as if such contributions are made under a single
arrangement.  If the plans mentioned in the preceding sentence have
different plan years, then all contributions made to all such plans during the
Plan Year being tested shall be treated as contributions under this Plan without
regard to the plan years of the other plans.

    

    For the purpose of this subsection (b),
if, for any Plan Year, the definition of “Compensation” as defined in Section 21
does not meet the requirements of Code Section 414(s) and Treasury Regulation
1.414(s)-1, the definition of “Section 415 Compensation” as set forth in Section
3.01(a) shall be substituted.

    

    For the purpose of this subsection (b),
“applicable plan year” means, for the group of eligible Highly-Compensated
Employees described in subsection (a) above, the current Plan Year, and for the
group of eligible Non-Highly-Compensated Employees described in subsection (a)
above, either the current Plan Year or the immediately preceding Plan Year, as
specified below.  To the extent the Plan provides that the applicable
plan year is the current Plan Year for the eligible group of
Non-Highly-Compensated Employees, the Sponsor may only amend such testing method
to provide for testing based on the immediately preceding Plan Year only if the
Plan has used the current Plan Year method for each of the preceding five Plan
Years (or if less, the number of Plan Years that the Plan has been in existence)
or if, as a result of a merger or acquisition described in Code Section
410(b)(6)(D)(i), the Employer maintains both a plan using the current Plan Year
method and the prior Plan Year method and the change is made within the
transition period described in Code Section 410(b)(6)(ii).  The
testing method selected in this paragraph for the eligible group of
Non-Highly-Compensated Employees is the current Plan Year method.

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    (c)           In
determining whether the Plan satisfies the contribution percentage test set
forth in subsection (b) above, all contributions described in subsection (b)
above that are made by or on behalf of Participants under any other plan or
plans that are required to be aggregated with the Plan for purposes of
satisfying Code Sections 401(m), 401(a)(4) or 410(b) shall be included in the
contribution percentage test.  Plans are required to be aggregated in
accordance with this subsection only if they use the same contribution
percentage testing method.

    

    (d)           For
the purpose of this section, an Employee will be treated as either an eligible
Highly-Compensated Employee or an Eligible Non-Highly-Compensated Employee for a
Plan Year if such person was eligible to receive Matching Contributions from the
Plan for the Plan Year.

    

    (e)           The
Plan will not be treated as failing to meet the requirements of this section for
any Plan Year if, before the close of the following Plan Year (and if practical,
to avoid certain excise taxes, before the close of the first 21⁄2 months of the
following Plan Year), the amount of the excess aggregate contributions for such
Plan Year and any income allocable to such contributions is forfeited and used
to reduce subsequent contributions by the Employer, if forfeitable; or
distributed, if not forfeitable, not later than the last day of the Plan Year
following the Plan Year to which such excess aggregate contribution
relates.  For this purpose, “income” will mean the sum of the
allocable gain or loss on such contributions for the Plan Year in which the
excess aggregate contribution arose.  Effective for the Plan Year
commencing on or first following January 1, 2006, but not any Plan Year
thereafter, the allocable gain or loss shall include the period between the end
of the Plan Year and the date of distribution or forfeiture to the extent that
the Participant would have otherwise received the gain or loss for such period
if the Participant’s entire Account were distributed.  The allocable
gain or loss will be calculated under one of the methods set forth in Treasury
Regulation 1.401(m)-2(b)(2)(iv) with one such method being applied consistently
to all affected Participants.

    

    (f)           Any
distribution of excess aggregate contributions for any Plan Year will be made to
Highly-Compensated Employees determined by allocating such amounts to the
Highly-Compensated Employees with the largest excess contribution percentage
dollar amounts, beginning with the Highly-Compensated Employee with the largest
dollar amount and continuing in descending order to the Highly-Compensated
Employee with the next highest dollar amount, etc., until all of the excess
aggregate contributions have been allocated.  For purposes of this
subsection, the term “excess aggregate contributions” will mean, with respect to
a Plan Year, the excess of (i) the aggregate amount of the contributions
actually made on behalf of Highly-Compensated Employees for such Plan Year
included in the contribution percentage, over (ii) the maximum amount of
such contributions permitted under the contribution percentage requirement
described in subsection (a) above, determined by hypothetically reducing the
contributions made on behalf of Highly-Compensated Employees in the order of
their contribution percentages, beginning with the highest contribution
percentage.  Such determination shall be made after first reducing the
amount of excess aggregate contributions by the amount of excess deferrals
previously distributed.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    3.05              Special Restriction on
Allocation

    

    Notwithstanding any provision contained
herein, no portion of the assets of the Plan attributable to Employer Shares
acquired by the Plan in a sale to which Section 1042 of the Code applies may be
allocated, either directly or indirectly, (a) to the Account of a
Participant who owns, after application of Section 318(a) of the Code, more than
25% of either (i) any class of outstanding stock of the Employer; or
(ii) the total value of any outstanding stock of the Employer; or
(b) during the “non-allocation period” [as defined in Code Section 409(n)],
to the Account of a Participant who makes an election under Code Section 1042(a)
with respect to Employer Shares or to any person “related” to such Participant,
within the meaning of Code Section 267(b).

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    SECTION 4 - PARTICIPANTS’
ACCOUNTS AND PLAN INVESTMENTS

    

    4.01              Primary
Investment

    

    On and after January 1, 2002, the
Plan is intended to be a stock bonus plan under Section 401(a) of the Code and
is hereby designated to be an employee stock ownership plan within the meaning
of Section 4975(e)(7) of the Code.  As an employee stock ownership
plan, the Plan will invest primarily in Employer Shares.  Any Plan
assets not invested in Employer Shares will be invested in other investment
vehicles selected by the Committee.

    

    4.02              Establishment of
Accounts

    

    The Committee will establish and
maintain, to the extent necessary, the following Accounts for a Participant:
Matching Contribution Account, Section 401(k) Account and Rollover
Account.  Separate Matching Contribution Accounts and Section 401(k)
Contribution Accounts shall be established for amounts allocated to such
accounts for periods prior to and on and after January 1,
2002.  The Committee may establish other accounts as it deems
necessary for the proper administration of the Plan.  All of the
preceding accounts maintained for a Participant will be referred to in the
aggregate as the Participant’s “Account.”

    

    4.03              Investment of
Accounts

    

    Except as set forth below and in
Section 4.04, Section 401(k) Contributions and Matching Contributions allocated
to a Participant’s Section 401(k) Account on and after January 1, 2002
shall be invested in Employer Shares.

    

    Notwithstanding the foregoing, the
amounts held in a Participant’s Section 401(k) Account and Matching Contribution
Account as of December 31, 2001, and the amount of a Participant’s Rollover
Account, shall continue to be invested in investment options selected by the
Committee.  A Participant may transfer among such investment options
as of the first day of each calendar quarter.

    

    Effective on and after January 1,
2007, notwithstanding the first paragraph of this section, the Plan shall permit
a Participant or Beneficiary to transfer amounts from the investment fund
holding shares of the Employer (“Employer Stock Fund”) to the other available
investment funds on a quarterly basis in accordance with the Plan’s
administrative procedures.

    

    4.04              Diversification
Requirements

    

    Effective January 1,
2002:

    

    (a)           To
the extent not already permitted pursuant to Section 4.03, a Participant who has
attained age 55 may elect to direct the Plan as to the investment of up to 25%
of the total balance of his Account as of the immediate preceding
December 31st that is
attributable to Employer Shares.

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    (b)           To
the extent the diversification requirements of this Section 4.04 are applicable
to a Participant, the Plan shall, notwithstanding Section 409(d) of the Code,
offer at least three investment options (other than Employer Shares) to each
Participant and, if the Participant so elects, by investing the amount of the
Participant’s diversification election in the option(s) selected by the
Participant.

    

    4.05              Dividends

    

    Cash dividends payable on Employer
Shares may be (i) paid directly to such Participant or Beneficiary;
(ii) paid to the Plan and subsequently distributed to a Participant or
Beneficiary not later than 90 days after the close of the Plan Year in which
paid to the Plan; (iii) payable, at the election of a Participant or
Beneficiary, as provided in clause (i) or (ii) or paid to the Plan and invested
in Employer Shares.  If paid to the Plan and invested in Employer
Shares, cash dividends shall be allocated as investment earnings.

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

    SECTION 5 - VALUATION OF
PARTICIPANTS’ ACCOUNTS

    

    5.01              Valuations

    

    As of each Valuation Date, the
Committee will obtain a valuation of the assets of the Trust Fund from the
Trustee on the basis of the market value of the assets of the Trust
Fund.  On the basis of such valuation, Participants’ Accounts will be
adjusted to reflect the effect of income received or accrued, realized and
unrealized profits and losses, expenses, payments to Participants and all other
transactions in the period since the last preceding Valuation Date.

    

    For purposes of obtaining the valuation
of Employer Shares under this section and with respect to all other activities
carried on by the Plan which require the valuation of Employer Shares, at all
times during which the Employer Shares are not readily tradable on an
established securities market, such valuations will be made by an “independent
appraiser,” within the meaning of Section 401(a)(28)(C) of the
Code.

    

    5.02               Method of
Adjustment

    

    Each Participant’s or Beneficiary’s
Account will be adjusted for contributions, withdrawals, earnings, losses, Plan
expenses and other debits or credits in accordance with procedures established
by the Committee.  Such adjustment will be made at least once during a
Plan Year, at a specific inventory date and in accordance with a method
consistently followed and uniformly applied.  The fair market value of
the assets of the Trust on the inventory date will be used for this purpose, and
the Accounts of Participants will be adjusted in accordance with the
valuation.  Adjustments will generally be made on a pro rata basis,
except that expenses and other items may be adjusted on a per capita basis, to
the extent that such adjustments satisfy Section 401(a)(4) of the
Code.  Notwithstanding the foregoing, earnings and losses of the Trust
Fund will be allocated to the Participant’s or Beneficiary’s adjusted Account
based upon the portion of the Participant’s Account invested in an investment
fund.  If Participants or Beneficiaries are permitted to direct the
investment of their Accounts, calculations of earnings or losses will be based
upon the investment performance of the investments selected by the Participant
or Beneficiary.

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    SECTION 6 - RETIREMENT
BENEFITS

    

    6.01              Eligibility for
Retirement

    

    A Participant who separates from
service from the Employer and all Affiliates on or after attaining his Normal
Retirement Age will become eligible for a retirement benefit equal to the entire
value of his Account.  Subject to Section 11.04, a Participant who is
eligible for a distribution pursuant to this section may elect among the forms
of benefits set forth in Section 11.01.

    

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    SECTION 7 - DEATH
BENEFITS

    

    7.01              Eligibility for Death
Benefit

    

    The Beneficiary of a Participant who
died prior to his severance from employment from the Employer and all Affiliates
will be entitled to the entire value of the deceased Participant’s
Account.  The Beneficiary of a Participant who died on or after his
severance from employment from the Employer and all Affiliates will be entitled
to the vested value of the Participant’s Account.

    

    7.02              Designation of
Beneficiary

    

    (a)           Subject
to the provisions of Section 7.03, each Participant will designate, by a written
instrument filed with the Committee, one or more Beneficiaries who, upon the
death of the Participant, will be entitled to receive the death benefit
described in Section 7.01.  If more than one Beneficiary is named, the
Participant may specify the sequence and/or proportion in which payments must be
made to each Beneficiary.  To the extent that the Participant does not
specify either the sequence or proportion in which payments are to be made to
each Beneficiary, payments will be made in equal shares to all named
Beneficiaries then living at the time of the Participant’s death.  To
the extent otherwise consistent with the Plan, a Participant may change his
Beneficiary from time to time by written notice delivered to the Committee in
the manner prescribed by the Committee.  If no Beneficiary has been
designated, or if no designated Beneficiary is living at the time of the
Participant’s death, payment of such death benefit, if any, to the extent
permitted by law, will be made to the surviving person or persons in the first
of the following classes of successive preference of
Beneficiaries:  (i) Surviving Spouse; or (ii) executors or
administrators of the estate of such deceased Participant.  Any
minor’s share will be paid to such adult or adults as have, in the opinion of
the Committee, assumed custody and support of such minor.  Proof of
death satisfactory to the Committee must be furnished prior to the payment of
any death benefit under the Plan.

    

    (b)           If
benefits under the Plan are paid to a Beneficiary pursuant to this Section 7 in
a form other than a lump sum, such Beneficiary (who must be the Participant’s
Spouse unless such Spouse consents to another beneficiary) may name in a writing
filed with the Committee an individual or individuals to receive the remainder
of such benefit upon the death of the Beneficiary.  In the absence of
such a designation by the Beneficiary, such remaining benefit, if any, will be
paid to the estate of the Beneficiary.  If a Beneficiary is alive at
the time of the Participant’s death but dies prior to the commencement of
benefits to him or her, the death benefit payable to the Beneficiary pursuant to
this Section 7 will be paid to the estate of such Beneficiary.

    

    7.03              Distribution of Death
Benefit

    

    If a Participant dies without a
Surviving Spouse and prior to the commencement of his retirement benefits, the
death benefit described in Section 7.01 will be distributed to his
Beneficiary.  Subject to Section 11.04, the Beneficiary may elect
among any of the forms of benefits available to Participants as set forth in
Section 11.01.

    
      
         

      

      
        21

        
          

        

      

      
         

      

    
 

    If a Participant dies with a Surviving
Spouse and prior to the commencement of his retirement benefits, the death
benefit described in Section 7.01 will be paid to his Surviving Spouse. Subject
to Section 11.04, the Surviving Spouse may elect among any of the forms of
benefits available to Participants as set forth in Section
11.01.  However, if the Spouse consents to an alternate Beneficiary to
receive the death benefit described in Section 7.01, such death benefit will be
distributed to the alternate Beneficiary in accordance with the preceding
paragraph.  For purposes of the preceding sentence, the consent of the
Spouse must (a) be in writing; (b) designate a specific Beneficiary,
including any class of beneficiaries or contingent beneficiaries, which may not
be changed without the consent of the Spouse (or the Spouse expressly permits
designations by the Participant without further consent of the Spouse);
(c) acknowledge the effect of such consent; and (d) be witnessed by a
Plan representative or notary public.

    

    If a Participant dies after the
commencement of his retirement benefit and prior to the complete distribution of
his Account, his Beneficiary will be entitled to the remaining amount in his
Account.  In such case, if the Participant either fails to designate a
Beneficiary or a Beneficiary is not alive at the time of the Participant’s
death, such death benefit will be payable to the surviving person or persons in
accordance with Section 7.02(a).

    

    All distributions made pursuant to this
section will also comply with the provisions of Section
11.03.

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    SECTION 8 - DISABILITY
BENEFITS

    

    
      	
              8.01

            	
              Amount of Disability
      Benefit

            

    

    

    A Participant who becomes “totally and
permanently disabled,” as defined in Section 8.02 below, will be entitled to the
entire value of his Account.  A Participant who is eligible for a
distribution pursuant to this section may elect among the forms of benefits set
forth in Section 11.01.

    

    
      	
              8.02 

            	
              Determination of Total
      and Permanent Disability

            

    

    

    A Participant will be considered to be
“totally and permanently disabled” if it is established that, while employed by
the Employer, the Participant has incurred a physical or mental condition
resulting from bodily injury, disease or mental disorder which renders him
incapable of continuing any gainful occupation, and which condition constitutes
total disability for federal Social Security disability
purposes.
 

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    SECTION 9 - IN-SERVICE AND
TERMINATION BENEFITS

    
 

    
      	
              9.01

            	
              Amount of Benefits
      Upon Severance from
      Employment

            

    

    

    Effective on and after January 1,
2002, a Participant who incurs a severance from employment from the Employer and
all Affiliates for any reason other than retirement (pursuant to Section 6),
death (pursuant to Section 7) or disability (pursuant to Section 8) will be
entitled to receive the entire value of his Account.  The term
“severance from employment” shall be interpreted in accordance with Code Section
401(a)(2)(B)(i)(I) and applicable authority thereunder.  A Participant
who is eligible for a distribution pursuant to this section may elect among the
forms of benefits set forth in Section 11.01.  The amendment set forth
in this section shall not apply to Participants who have severed their
employment from the Employer and all Affiliates prior to January 1,
2002.

    

    
      	
              9.02 

            	
              In-Service
      Distributions at Age
      591⁄2

            

    

    

    A Participant who has attained age 591⁄2
may withdraw from the Trust in the form of a single sum all or a portion of his
Account.  The Committee may, on a nondiscriminatory basis, devise
reasonable administrative rules implementing this section, including rules
governing the frequency with which a Participant may make withdrawals and the
manner in which such withdrawal will be charged against the Participant’s
Account.

    

    
      	
              9.03 

            	
              Hardship
      Distributions

            

    

    

    (a)          A
Participant actively employed by the Employer may apply to the Committee for a
hardship distribution from his Section 401(k) Account equal to the smaller of an
amount necessary to satisfy an immediate and heavy financial need or the value
of his Section 401(k) Account.  Amounts withdrawn from a Participant’s
Section 401(k) Account will not include income on Section 401(k) Contributions
earned after December 31, 1988 or the amount of qualified non-elective
contributions, as described in Section 2.02(b), and earnings on such
contributions.

    

    (b)          For
purposes of the Plan, an immediate and heavy financial need is the need for
money for:

    

    
      	
               
      

            	
              (i)

            	
              expenses
      for or necessary to obtain medical care described in Section 213(d) of the
      Code for the Participant or the Participant’s Spouse or
      dependents;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              costs
      directly related to the purchase (excluding mortgage payments) of a
      principal residence of the
Participant;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              the
      payment of tuition, related educational fees and room and board expenses
      for the next 12 months of postsecondary education for the Participant or
      the Participant’s Spouse, children or dependents (as defined in Code
      Section 152 and without regard to Code Sections 152(b)(1), (b)(2) and
      (d)(1)(B);

            

    

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    
 

    
      	
               
      

            	
              (iv)

            	
              the
      prevention of the eviction of the Participant from his or her principal
      residence or the foreclosure on the mortgage of the Participant’s
      principal residence;

            

    

    

    
      	
               
      

            	
              (v)

            	
              effective
      for Plan Years commencing on and after January 1, 2006, payment of
      burial or funeral expenses for the Participant’s deceased parents, spouse,
      children or dependents [as defined in Code Section 152 and without regard
      to Code Section 152(d)(1)(B)]; or

            

    

    

    
      	
               
      

            	
              (vi)

            	
              effective
      for Plan Years commencing on and after January 1, 2006, expenses for
      the repair of damage to the Participant’s principal residence that would
      qualify for the casualty deduction under Section 165 of the Code
      (determined without regard to whether the loss exceeds the 10% of adjusted
      gross income requirement).

            

    

    

    (c)          An
amount is necessary to satisfy an immediate and heavy financial need
if:

    

    
      	
               
      

            	
              (i)

            	
              the
      amount distributed does not exceed the amount of the immediate and heavy
      financial need (including amounts necessary to pay reasonably anticipated
      taxes and penalties on the hardship
  distribution);

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      Participant has obtained all other distributions and all nontaxable loans
      currently available under the Plan and all “other plans maintained by the
      employer” [as defined in Treasury Regulation 1.401(k)-1(d)(2)(iv)(B)(4),
      or effective for Plan Years commencing on and after January 1, 2006,
      as defined in Treasury Regulation 1.401(k)-1(d)(3)(iv)(F)] (or such loans
      or distributions have been denied), and has elected to receive all
      dividends currently payable to an employee stock ownership plan account
      maintained by an Employer for his benefit.  A loan will not be
      deemed to be available to a Participant to the extent that the Participant
      provides evidence satisfactory to the Committee that the loan repayment
      will constitute a financial hardship or the Participant provides a recent
      loan denial from a commercial lender in the amount of the proposed
      hardship withdrawal; and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              a
      Participant who has received a hardship distribution will not be eligible
      to make any Section 401(k) Contributions for the 6 months after the
      hardship distribution under the Plan or any similar contributions under
      any other plan [within the meaning of Treasury Regulation
      1.401(k)-1(d)(2)(iv)(B)(4)] maintained by the Employer or an
      Affiliate.

            

    

    

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    
      	
              9.04 

            	
              Distribution of
      Rollover Contributions

            

    

    

    A Participant will not be permitted to
withdraw any portion of his Rollover Account prior to the time his Account may
be distributed as a result of retirement (pursuant to Section 6), death
(pursuant to Section 7), disability (pursuant to Section 8) or separates from
service from the Employer and all Affiliates (pursuant to Section 9) or at the
time the Participant is otherwise eligible to receive a distribution of his
entire Account.

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    SECTION 10 -
VESTING

    

    
      	
              10.01 

            	
              Determination of
      Vested Benefits

            

    

    

    A Participant’s Account will be fully
vested at all times.
 

    
      
         

      

      
        27

        
          

        

      

      
         

      

    

    SECTION 11 - PAYMENT OF
BENEFITS

    

    
      	
              11.01 

            	
              Method of
      Payment

            

    

    

    Except as provided in Section 11.04
below, at the time a Participant’s benefit under the Plan may be distributed as
a result of the Participant’s retirement (pursuant to Section 6), death
(pursuant to Section 7), disability (pursuant to Section 8) or severance from
employment (pursuant to Section 9.01), the Participant (or Beneficiary in the
case of the Participant’s death) may elect, on a form provided by the Committee,
to receive the amount payable pursuant to such section in the form of (a) a
lump sum; or (b) periodic installments over a monthly, quarterly,
semi-annual or yearly period, as specified by the Participant or
Beneficiary.  Amounts held in a Participant’s Account consisting of
Employer Shares shall be distributed in-kind unless the Participant elects to
receive such shares in cash; except that notwithstanding a Participant’s
direction, the Committee may elect to pay fractional shares in
cash.

    

    The Committee will direct the Trustee
to make a distribution to the Participant or Beneficiary in accordance with such
election.

    

    If the Participant elects to receive a
distribution in a form other than a lump sum, minimum annual payments under the
Plan must be paid over one of the following periods (or a combination
thereof):

    

    (a)          a
period certain not extending beyond the life expectancy of the Participant;
or

    

    (b)          a
period certain not extending beyond the joint and last survivor expectancy of
the Participant and a designated Beneficiary;

    

    and the
amount to be distributed each year must be at least equal to the result obtained
by dividing the amount payable to the Participant by the applicable life
expectancy.

    

    
      	
              11.02 

            	
              Timing of
      Payments

            

    

    

    (a)           Subject
to subsection (b) below, unless the Participant elects otherwise, the payment of
the Participant’s benefit pursuant to Section 11.01 will begin not later than 60
days after the end of the Plan Year in which the latest of the following occurs:
(i) the Participant attains his Normal Retirement Age; (ii) the tenth
anniversary of the year in which the Participant commenced participation in the
Plan; or (iii) the Participant terminates service with the Employer and all
Affiliates.  To the extent a Participant who is required to consent to
a distribution pursuant to Section 11.04 fails to provide the Committee with his
consent, the Participant will be deemed to have made an election to defer a
distribution pursuant to this subsection (a).

     

    (b)           This
subsection (b) shall apply to any Participant who attains age 701⁄2
after December 31, 1995.  In no event will the amounts payable to
a Participant pursuant to the terms of the Plan be distributed, or commence to
be distributed, later than the Participant’s Required Beginning
Date.  “Required Beginning Date” means, for a Participant who is not a
5% Owner, April 1 of the calendar year following the later of (i) the
calendar year in which the Participant attains age 701⁄2; or (ii) the
calendar year in which the Participant retires. The Required Beginning Date of a
Participant who is a 5% Owner means April 1 of the calendar year following
the calendar year in which the Participant attains age 701⁄2.

    
      
         

      

      
        28

        
          

        

      

      
         

      

    

     

    The amount distributed to a Participant
pursuant to subsection (b) shall be not less than the amount necessary to
satisfy Code Section 401(a)(9), including the minimum distribution incidental
benefit requirement of Section 401(a)(9)(G) of the Code, and the applicable
regulations thereunder, as further set forth below.

     

    Distributions that commence pursuant to
this subsection (b) will commence in one of the forms of benefit offered under
the Plan, as elected by the Participant, provided that the amount of such
distributions and the date such distributions commence comply with Code Section
401(a)(9) and applicable regulations thereunder.

    

    During the Participant’s lifetime, the
minimum amount that is required to be distributed in accordance with this
subsection (b) for each distribution calendar year is the lesser
of:

    

    
      	
               
      

            	
              (i)

            	
              the
      quotient obtained by dividing the Participant’s account balance by the
      distribution period in the Uniform Lifetime Table set forth in Section
      1.401(a)(9)-9 of the Treasury Regulations, using the Participant’s age as
      of the Participant’s birthday in the distribution calendar year;
      or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              if
      the Participant’s sole designated beneficiary for the distribution
      calendar year is the Participant’s Spouse, the quotient obtained by
      dividing the Participant’s account balance by the number in the Joint and
      Last Survivor Table set forth in Section 1.401(a)(9)-9 of the Treasury
      Regulations, using the Participant’s and Spouse’s attained ages as of the
      Participant’s and Spouse’s birthdays in the distribution calendar
      year.

            

    

    

    Required minimum distributions will be
determined during a Participant’s lifetime beginning with the first distribution
calendar year and up to and including the distribution calendar year that
includes the Participant’s date of death.

    

    The following definitions apply to
Section 11.02(b) and Section 11.03:

    

    Designated
beneficiary.  The individual who is designated by a Participant
as a Beneficiary under the Plan who is also determined to be a designated
beneficiary under Section 401(a)(9) of the Internal Revenue Code and Section
1.401(a)(9)-4 of the Treasury Regulations.

    

    Distribution calendar
year.  A calendar year for which a minimum distribution is
required.  For distributions beginning before the Participant’s death,
the first distribution calendar year is the calendar year immediately preceding
the calendar year which contains the Participant’s Required Beginning
Date.  For distributions beginning after the Participant’s death, the
first distribution calendar year is the calendar year in which distributions are
required to begin under Section 11.03(b).  The required minimum
distribution for the Participant’s first distribution calendar year will be made
on or before the Participant’s Required Beginning Date.  The required
minimum distribution for other distribution calendar years, including the
required minimum distribution for the distribution calendar year in which the
Participant’s Required Beginning Date occurs, will be made on or before December
31 of that distribution calendar year.

    
      
         

      

      
        29

        
          

        

      

      
         

      

    

    
 

    Life
expectancy.  Life expectancy as computed by use of the Single
Life Table in Section 1.401(a)(9)-9, Q&A-1, of the Treasury
Regulations.

    

    Account
balance.  The account balance as of the last Valuation Date in
the calendar year immediately preceding the distribution calendar year
(valuation calendar year) increased by the amount of any contributions made and
allocated or forfeitures allocated to the account balance as of dates in the
valuation calendar year after the Valuation Date and decreased by distributions
made in the valuation calendar year after the Valuation Date.  The
account balance for the valuation calendar year includes any amounts rolled over
or transferred to the Plan either in the valuation calendar year or in the
distribution calendar year if distributed or transferred in the valuation
calendar year.

    

    For plans in existence on and after
1984 and prior to January 1, 2003, required minimum distributions before
2003 were made as follows:

    

    
      	
               
      

            	
              (i)

            	
              Required
      minimum distributions for calendar years after 1984 and before 2001 were
      made in accordance with Code Section 401(a)(9) and the proposed
      regulations thereunder published in the Federal Register on July 27,
      1987, and other applicable
guidance.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Required
      minimum distributions for calendar years beginning on or after
      January 1, 2001 and prior to January 1, 2002 were made in
      accordance with Code Section 401(a)(9) and the proposed regulations
      thereunder published in the Federal Register in January
    2001.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              For
      the purpose of this Section 11.02, a Participant is treated as a 5% Owner
      if such Participant is a “5% Owner” (as defined in Code Section 416) with
      respect to the Plan Year ending with or within the calendar year in which
      such owner attains age 701⁄2.

            

    

    

    (c)           Unless
a distribution is required to be made to a Participant or Beneficiary pursuant
to Section 11.04, a distribution to a Participant or Beneficiary who is eligible
to receive a distribution pursuant to this Section 11 will be made as soon as is
administratively practicable after the Participant or Beneficiary completes a
benefit election form and returns it to the Committee.

    

    
      	
              11.03 

            	
              Distributions After
      Death

            

    

    

    If the distribution of a Participant’s
benefit under the Plan has commenced pursuant to Section 11 and he dies before
his entire account balance has been distributed to him, the remaining portion of
such account balance, if any, will be distributed at least as rapidly as under
the method of distribution in effect prior to the Participant’s death, as
determined in accordance with the provisions of Code Section 401(a)(9)(B)(i) and
applicable regulations thereunder.

    
      
         

      

      
        30

        
          

        

      

      
         

      

    

    
 

    (a)          If
the Participant dies on or after the date distribution of his account balance
has commenced in accordance with the terms of the Plan, he dies prior to his
entire account being distributed to him and there is a designated beneficiary,
the minimum amount that is required to be distributed for each distribution
calendar year after the year of the Participant’s death is the quotient obtained
by dividing the Participant’s account balance by the longer of the remaining
life expectancy of the Participant or the remaining life expectancy of the
Participant’s designated beneficiary, determined as follows:

    

    
      	
               
      

            	
              (i)

            	
              The
      Participant’s remaining life expectancy is calculated using the age of the
      Participant in the year of death, reduced by one for each subsequent
      year.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              If
      the Participant’s Surviving Spouse is the Participant’s sole designated
      beneficiary, the remaining life expectancy of the Surviving Spouse is
      calculated for each distribution calendar year after the year of the
      Participant’s death using the Surviving Spouse’s age as of the Spouse’s
      birthday in that year.  For distribution calendar years after
      the year of the Surviving Spouse’s death, the remaining life expectancy of
      the Surviving Spouse is calculated using the age of the Surviving Spouse
      as of the Spouse’s birthday in the calendar year of the Spouse’s death,
      reduced by one for each subsequent calendar
  year.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              If
      the Participant’s Surviving Spouse is not the Participant’s sole
      designated beneficiary, the designated beneficiary’s remaining life
      expectancy is calculated using the age of the designated beneficiary in
      the year following the year of the Participant’s death, reduced by one for
      each subsequent year.

            

    

    

    If the Participant dies on or after the
date distribution of his account balance has commenced in accordance with the
terms of the Plan and there is no designated beneficiary as of September 30
of the year after the year of the Participant’s death, the minimum amount that
is required to be distributed for each distribution calendar year after the year
of the Participant’s death is the quotient obtained by dividing the
Participant’s account balance by the Participant’s remaining life expectancy
calculated using the age of the Participant in the year of death, reduced by one
for each subsequent year.

    

    (b)          Unless
otherwise provided in this Section 11.03, if a Participant dies before the
distribution of his account balance has commenced in accordance with the terms
of the Plan, the amount payable as a death benefit pursuant to the terms of the
Plan (hereinafter referred to as “death benefit”) will be
distributed:

    

    
      	
               
      

            	
              (i)

            	
              unless
      otherwise provided in (ii) below, not later than by the fifth anniversary
      of the December 31 coinciding with or next following the date of his
      death; or

            

    

    
      
         

      

      
        31

        
          

        

      

      
         

      

    

    
 

    
      	
               
      

            	
              (ii)

            	
              provided
      that the Plan provides for installment or annuity distributions to a
      Beneficiary and the Participant’s death benefit is payable to or on behalf
      of a designated beneficiary who is alive on the September 30 of the
      year following the year of the Participant’s
  death:

            

    

    

    
      	
               
      

            	
              (A)

            	
              over
      a period not extending beyond the life expectancy of such designated
      beneficiary (or the installment period set forth in Section 11.01, if
      less), provided that the distribution of the death benefit commences not
      later than the first anniversary of the December 31 coinciding with
      or first following the date of the Participant’s death;
  or

            

    

    

    
      	
               
      

            	
              (B)

            	
              if
      the designated beneficiary is the Participant’s Surviving Spouse, the date
      by which the death benefit must commence in paragraph (i) above will not
      be earlier than the later of the December 31 of the calendar year
      immediately following the calendar year in which the Participant died or
      the December 31 of the calendar year in which the Participant would
      have attained age 701⁄2.  If the Surviving Spouse dies before
      distribution to said Spouse begins, this paragraph (ii) will apply as if
      the Surviving Spouse were the Participant.  In addition, any
      amount paid to a child of the Participant will be treated as if it had
      been paid to the Surviving Spouse if the amount becomes payable to the
      Surviving Spouse when the child reaches the age of
    majority.

            

    

    

    The designated beneficiary must elect
the method of distribution payable pursuant to this Section 11.03(b) not later
than the earlier of (I) the December 31 of the calendar year in which
distributions would be required to begin under this Section 11.03(b); or
(II) the December 31 of the calendar year which contains the fifth
anniversary of the date of death of the Participant.

    

    If the Participant’s Surviving Spouse
is the Participant’s sole designated beneficiary and the Surviving Spouse dies
after the Participant but before distributions to the Surviving Spouse begin,
this Section 11.03(b) [except subparagraph (b)(ii)(B) above] will apply as if
the Surviving Spouse were the Participant.  For the purpose of
Sections 11.02 and 11.03, unless the preceding sentence applies, distributions
are considered to begin on either the Participant’s Required Beginning Date or,
if subparagraph (b)(ii)(B) applies, the date distributions are required to begin
to the Surviving Spouse under such subparagraph.

    

    (c)          If
the Participant dies prior to the date distributions begin and there is a
designated beneficiary, the minimum amount that will be distributed for each
distribution calendar year payable in accordance with subsection (b) above after
the year of the Participant’s death is the quotient obtained by dividing the
Participant’s account balance by the remaining life expectancy of the
Participant’s designated beneficiary.
 

    
      
         

      

      
        32

        
          

        

      

      
         

      

    

    If the Participant dies prior to the
date distributions begin and there is no designated beneficiary as of
September 30 of the year following the year of the Participant’s death, the
Participant’s entire interest payable in accordance with subsection (b) above
will be distributed by December 31 of the calendar year containing the
fifth anniversary of the Participant’s death.

    

    For the purpose of this Section 11.03,
“Required Beginning Date,” “account balance,” “designated beneficiary,” “life
expectancy” and “distribution calendar year” shall have the meanings as set
forth in Section 11.02(b).

    

    
      	
              11.04 

            	
              Consent and Cash-Out
      Requirements

            

    

    

    If a Participant is eligible to receive
a distribution pursuant to Section 6, 7, 8 or 9.01 and the value of his vested
Account does not exceed $5,000 (excluding the Participant’s Rollover Account)
effective for distributions made to Participants after December 31, 2001,
the Participant (or Beneficiary in the case of the Participant’s death) will
receive a distribution of his vested Account in the form of a lump sum as soon
as administratively feasible following the date he is first eligible to receive
a distribution from the Plan.

    

    If a Participant is eligible to receive
a distribution pursuant to Section 6, 7, 8 or 9.01, or is otherwise eligible to
receive a distribution from his Account, and the value of his vested Account
exceeds $5,000 (excluding the Participant’s Rollover Account) effective for
distributions made to Participants after December 31, 2001, the Participant
must consent to the receipt of a distribution made from the Plan if distributed
prior to the later of the date the Participant attains his Normal Retirement Age
or age 62, except that the consent of the Participant is not required prior to
the commencement of a distribution pursuant to Code Section 401(a)(9) or
415.

    

    A Participant’s election to receive a
distribution from the Plan prior to his attainment of the later of age 62 or his
Normal Retirement Age will not be valid unless (a) the Participant has
received a general description of the material features and the relative values
of the forms of benefits (hereinafter referred to as “description”) under the
Plan; and (b) the Participant has been informed that he has the right to
postpone a distribution from the Plan until the later of age 62 or his Normal
Retirement Age.  The Participant will be provided with such
description not less than 30 days and not more than 90 days prior to the date
his benefits are scheduled to commence, provided that a distribution may be made
to the Participant prior to such 30-day period, provided the Participant has
been informed that he has a right to a period of at least 30 days after
receiving the description to consider the decision of whether to elect a
distribution from the Plan and the Participant, after receiving such
information, affirmatively elects a distribution prior to such 30-day
period.

    

    In addition, effective for
distributions from the Plan on and after March 28, 2005, if the value of a
terminated Participant’s Account is more than $1,000 but not more than $5,000,
such Participant shall be provided with a written notice informing the
Participant that if he or she does not elect to either receive a cash payment
from the Plan of his or her entire Account, or elect to roll over his or her
entire Account in accordance with Section 11.05 of the Plan, the value of the
terminated Participant’s entire Account will be rolled over into an Individual
Retirement Account (“IRA”) selected by the Sponsor.  The Sponsor shall
select the IRA to which the rollover will be made and shall transfer the
affected Participant’s Account to the IRA in accordance with Employee Benefits
Security Administration Regulation 2550.404a2.

    
      
         

      

      
        33

        
          

        

      

      
         

      

    

    
 

    
      	
              11.05 

            	
              Eligible Rollover
      Distributions

            

    

    

    (a)          A
distributee may elect to have any portion of an eligible rollover distribution
paid directly to an eligible retirement plan specified by the distributee in a
direct rollover.

    

    (b)          The
following definitions will apply for purposes of this section:

    

    
      	
               
      

            	
              (i)

            	
              Eligible
      rollover distribution:  An eligible rollover distribution is any
      distribution of all or any portion of the balance to the credit of the
      distributee, except that an eligible rollover distribution does not
      include:  (A) any distribution that is one of a series of
      substantially equal periodic payments (not less frequently than annually)
      made for the life (or life expectancy) of the distributee or the joint
      lives (or joint life expectancies) of the distributee and the
      distributee’s designated beneficiary; (B) any distribution that is
      for a specified period of ten years or more; (C) any distribution to
      the extent such distribution is required under Code Section
      401(a)(9).   Such distribution will be an eligible rollover
      distribution unless otherwise provided in this subsection (i);
      (D) the portion of any distribution that is not includable in gross
      income (determined without regard to the exclusion for net unrealized
      appreciation with respect to employer securities); (E) a distribution
      made to a Participant in accordance with Section 9.03; and (F) at the
      election of the Committee, any other distribution providing all
      distributions in the year are reasonably expected to total less than
      $200.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Eligible
      retirement plan:  An “eligible retirement plan” has the meaning
      as described in Section 402(c)(8)(B).  Effective for
      distributions from the Plan after December 31, 2001, an eligible
      retirement plan shall also mean an annuity contract described in Code
      Section 403(b) and an eligible plan under Code Section 457(b) which is
      maintained by a state, political subdivision of a state or any agency or
      instrumentality of a state or political subdivision of a state and which
      agrees to separately account for amounts transferred into such plan from
      this Plan.  The definition of eligible retirement plan shall
      also apply in the case of a distribution to a Surviving Spouse, or to a
      Spouse or former Spouse who is the alternate payee under a qualified
      domestic relations order, as defined in Code Section
    414(p).

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Distributee:  A
      distributee includes an Employee or former Employee.  In
      addition, the Spouse or Surviving Spouse of an Employee or former Employee
      is a distributee with regard to the interest of the Spouse or Surviving
      Spouse.

            

    

    
      
         

      

      
        34

        
          

        

      

      
         

      

    

    
 

    
      	
               
      

            	
              (iv)

            	
              Direct
      rollover:  A direct rollover is a payment by the Plan to the
      eligible retirement plan specified by the
  distributee.

            

    

    

    
      	
              11.06 

            	
              Put
      Option

            

    

    

    (a)          Except
as otherwise provided in this Section 11.06, all Employer Shares that are not
readily tradable on an established market at the time they are distributed will
be subject to a put option.  The put option will permit the
Participant or Beneficiary to put such Employer Shares to the
Employer.  Put options will be exercisable during a 60-day period
beginning on the date the security subject to the put option is distributed by
the Plan.  If the Participant or Beneficiary does not exercise the
initial put option within the initial 60-day period, the option shall
temporarily lapse, and such person shall be provided with a second 60-day period
in which to exercise the option commencing at the beginning of the following
Plan Year.  The put option may be exercised by the holder of the
shares by notifying the Employer in writing that the put option is being
exercised.  The price at which the put option must be exercisable is
the fair market value of the Employer Shares.

    

    (b)          If,
pursuant to this section, the Employer is required to repurchase Employer Shares
that are distributed within one taxable year in a distribution that represents
the balance to the credit of the Participant’s Account, the amount to be paid
for such Employer Shares will be paid in substantially equal periodic payments
(not less frequently than annually) over a period beginning not later than 30
days after the exercise of the put option described in this section and not
exceeding five years.  If, pursuant to this section, the Employer is
required to repurchase Employer Shares that are distributed to a Participant as
part of an installment distribution, the amount to be paid for such Employer
Shares will be paid not later than 30 days after the exercise of the put option
described in this section.

    

    (c)          Under
no circumstances may the put option bind the Plan.  However, the Plan
may assume the rights and obligations of the Employer at the time the put option
is exercised.  Adequate security will be provided and reasonable
interest will be paid on the amounts payable to the individual or entity that
exercised the put option.

    

    (d)          Notwithstanding
any provision of this Plan to the contrary, (i) to the extent that the
Employer’s charter or by-laws restrict the ownership of substantially all
outstanding employer securities to employees or to a trust described in Code
Section 401(a); or (ii) to the extent the Employer is an S corporation, the
Plan may require that the individual entitled to receive a distribution from the
Plan has a right to receive the distribution in the form of cash, except that
the Plan may distribute Employer Shares to such individual subject to a
requirement that such securities may be resold to the Employer under the
circumstances described in the preceding paragraphs of this Section
11.06.

    
 

    (e)          In
the case of a Plan established by a bank that is prohibited by law from
redeeming or purchasing its own securities, the requirements of this section
will not apply, provided that Participants entitled to receive a distribution
from the Plan have the right to receive a distribution in the form of
cash.

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    
 

    (f)          The
rights set forth in this Section 11.06 shall be non-terminable regardless of
whether the Plan ceases to be an employee stock ownership plan.

    

    
      	
              11.07 

            	
              Right of First
      Refusal

            

    

    

    (a)          During
any period when Employer Shares are not publicly traded, all distributions of
Employer Shares to a Participant or his Beneficiary by the Plan will be subject
to a “right of first refusal” upon the terms and conditions hereinafter set
forth.  The “right of first refusal” will provide that prior to any
transfer of the Employer Shares, the Participant or Beneficiary must first offer
to sell such shares to the Plan; and if the Plan refuses to exercise its right
to purchase the Employer Shares, then the Employer will have a “right of first
refusal” to purchase such Shares.  Neither the Plan nor the Employer
will be required to exercise the “right of first refusal.”  This
Section 11.07 will not be operative unless and until the Board of Directors of
the Sponsor so directs.

    

    (b)         The
terms and conditions of the “right of first refusal” will be determined as
follows:

    

    
      	
               
      

            	
              (i)

            	
              If
      the Participant or Beneficiary receives a bona fide offer for the purchase
      of all or any part of his Employer Shares from a third party, the
      Participant or Beneficiary will deliver (by registered mail, return
      receipt requested) a copy of any such offer to the
      Committee.  The Trustee (as directed by the Committee) or the
      Employer, as the case may be, will then have 14 days after receipt by the
      Committee of the written offer to exercise the right to purchase all or
      any portion of the Employer Shares.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              The
      selling price and other terms under the “right of first refusal” must not
      be less favorable to the Participant or Beneficiary than the purchase
      price and other terms offered by a buyer, other than the Employer or the
      Plan making a good faith offer to purchase the
  security.

            

    

    

    The Employer may require a Participant
or Beneficiary who is entitled to a distribution of Employer Shares to execute
an appropriate stock transfer agreement evidencing the right of first refusal
prior to receiving a certificate for Employer Shares.
 

    
      
         

      

      
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      SECTION 12 - TRUST
AGREEMENT

    

    
 

    
      	
              12.01 

            	
              Description of Trust
      Agreement

            

    

    

    The Sponsor will continue the Trust
Agreement with the Trustee to provide for the administration of the Trust
Fund.  With its continuation, the Trust Agreement will be deemed to
form a part of the Plan; and any and all rights or benefits which may accrue to
any person under the Plan will be subject to all the terms and provisions of the
Trust Agreement.

    

    All expenses of the Plan will be paid
from the Trust Fund, unless paid by the Employer.  In its discretion,
the Employer may require the Trustee to reimburse the Employer for expenses of
the Plan that the Employer paid on behalf of the Trust, so long as the request
for reimbursement is presented by the Employer to the Trustee before the last
day of the Plan Year in which the expense was paid by the
Employer.  Alternatively, the Employer may reimburse the Trust for
expenses of the Plan paid by the Trustee.  An administration expense
paid to the Trust as a reimbursement will not be considered as a contribution
made by the Employer.

    

    The Plan shall permit the Trustee to
purchase “qualifying employer securities” or “qualifying employer real
property,” as such terms are defined in Section 407 of the Employee Retirement
Income Security Act of 1974.
 

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    SECTION 13 - PLAN
ADMINISTRATION

    
 

    
      	
              13.01 

            	
              Plan
      Administrator

            

    

    

    The Sponsor shall be the “plan
administrator” with respect to the Plan and a “named fiduciary” with respect to
the Plan and Trust Fund, as such terms are defined under ERISA.  The
Board of Directors of the Sponsor shall appoint a plan administration committee
(“Committee”) to assist the Sponsor in administering the Plan and to handle the
day-to-day administrative responsibilities with respect to the
Plan.

    

    
      	
              13.02 

            	
              Duties of
      Committee

            

    

    

    The Committee is authorized to perform,
in its discretion, all functions necessary to administer the Plan and will have
the power and discretion to construe the terms of the Plan and to determine all
questions arising from its operation, including, without limitation, to
determine the eligibility and qualification of Employees or Beneficiaries for
benefits under the Plan (including the validity of a beneficiary designation);
to determine the allocation and vesting of contributions, earnings and profits
of the Plan; to determine the amount of benefits payable to Participants and
Beneficiaries; unless otherwise provided pursuant to Section 17, to decide all
questions or disputes with respect to the rights or obligations of Participants
and Beneficiaries; and to adopt regulations and procedures.  To the
extent provided in the Plan and the Trust, the Committee or other fiduciary may
direct the Trustee as to the investment of the Trust or may select an investment
advisor to so direct.

    

    The Committee may employ one or more
persons to render advice with regard to any responsibility it has under the
Plan, and it may designate others to carry out any of its
responsibilities.

    

    
      	
              13.03 

            	
              Interpretation of
      Document

            

    

    

    The construction and interpretation of
the Plan provisions, or any document relating to the administration or operation
of the Plan, are vested with the Committee, in its absolute
discretion.  The Committee will endeavor to act, whether by general
rules or by particular decisions, so as to treat all persons in similar
circumstances without discrimination.  Subject to Section 17, all such
decisions, determinations and interpretations of the Committee will be final,
conclusive and binding upon all parties having an interest in the
Plan.

 

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

    SECTION 14 - AMENDMENT AND
TERMINATION

    
 

    
      	
              14.01 

            	
              Sponsor’s Right to
      Amend or Terminate the Plan

            

    

    

    The Sponsor has the right, at any time,
by an instrument in writing, to modify, alter, amend or terminate the Plan in
whole or in part.  Except as permitted by Code Section 411(d)(6) and
applicable regulations thereunder, no amendment to the Plan will reduce the
Participant’s accrued benefit, decrease the balance of a Participant’s Account
or eliminate an optional form of distribution with respect to the amount of the
Participant’s Account accrued as of the date of the amendment.  To
this end, provisions that affect directly or indirectly the computation of
accrued benefits and are amended at the same time and with the same effective
date will be treated as one Plan amendment.

    

    The Board of Directors of the Sponsor,
an executive committee of the Board of Directors or other committee of the Board
of Directors or any executive officer to which or whom the Board of Directors
delegates discretionary authority with respect to the Plan may exercise the
Sponsor’s right to amend the Plan.
 

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

    SECTION 15 - DISTRIBUTIONS
ON PLAN TERMINATION

    
 

    
      	
              15.01 

            	
              Payment on Plan
      Termination

            

    

    

    Upon termination of the Plan, the
Committee will make payment of each Participant’s or Beneficiary’s Account in
either cash or assets of the Trust Fund.  Such payment will be made in
the form of a single lump sum payment.  Notwithstanding the foregoing,
a Participant’s Section 401(k) Account may not be distributed upon the
termination of the Plan if the Employer maintains an “alternative defined
contribution plan” [as defined in Treasury Regulation
1.401(k)-1(d)(4)].

 

    
      
         

      

      
        40

        
          

        

      

      
         

      

    

    SECTION 16 - CREDITORS OF
PARTICIPANTS

    
 

    
      	
              16.01 

            	
              Non-Assignability

            

    

    

    Except as otherwise provided in Code
Section 401(a)(13), no assignment, pledge or encumbrance of any character of the
benefits under the Plan is permitted or recognized under any circumstances; and
such benefits will not be subject to claims of creditors, execution, attachment,
garnishment or any other legal process.

    

    
      	
              16.02 

            	
              Qualified Domestic
      Relations Orders

            

    

    

    Section 16.01 will also apply to the
creation, assignment or recognition of a right to any benefit payable with
respect to a Participant pursuant to a domestic relations order unless such
order is determined to be a “qualified domestic relations order,” as defined in
Code Section 414(p).  A qualified domestic relations order may provide
for an immediate distribution to the “alternate payee” [as defined in Code
Section 414(p)(8)] named therein as soon as is administratively practicable
after the determination by the Committee that the order constitutes a qualified
domestic relations order, notwithstanding the fact the distribution is made to
such alternate payee prior to the Participant attaining his “earliest retirement
age,” as such term is defined in Code Section 414(p).
 

    
      
         

      

      
        41

        
          

        

      

      
         

      

    

    SECTION 17 - CLAIMS
PROCEDURES

    

    17.01             Filing a Claim for
Benefits

    

    A Participant, Beneficiary, alternate
payee, or such person’s authorized representative, or the Employer acting on
behalf of such individual, will notify the Committee of a claim for benefits
under the Plan.  Such request will set forth the basis of such claim
and will authorize the Committee to conduct such examinations as may be
necessary for the Committee to determine, in its discretion, the validity of the
claim and to take such steps as may be necessary to facilitate the payment of
benefits to which the claimant may be entitled under the terms of the
Plan.  Before deciding the claim, the Committee shall review the
provisions of the Plan, summary plan description and other relevant plan
documents, including similar claims, in order to ensure and verify that the
claim is made in accordance with such documents and the decision is applied
consistently with regard to similarly situated claimants.

    

    A decision by the Committee on a claim
for benefits under the Plan [other than a claim for disability benefits pursuant
to Section 8 of the Plan] will be made within a reasonable period of time and
not later than 90 days after the Committee’s receipt of such claim, unless
special circumstances require an extension of the time for deciding the claim;
in which case, a decision will be rendered as soon as reasonably possible, but
not later than 180 days after the initial receipt of the claim for
benefits.  The claimant will be notified of the extension prior to the
expiration of the 90-day period described in this paragraph.  Such
notice to the claimant shall indicate the special circumstances requiring the
extension and the date by which the Committee expects to render a
decision.

    

    A decision by the Committee on a claim
for disability retirement pursuant to Section 8 of the Plan shall be made
promptly and not later than 45 days after the Committee’s receipt of the claim,
unless the Committee determines that an extension of time of 30 days is
necessary due to matters beyond the control of the Plan, and notifies the
claimant prior to the expiration of the 45-day period of the circumstances
requiring the extension of time and the date a decision will be
made.  If, prior to the end of the first 30-day extension period, the
Committee determines that, due to matters beyond the control of the Plan, a
decision cannot be rendered within the first 30-day extension period and
notifies the claimant of the circumstances requiring the need for an additional
extension, the determination may be extended for an additional 30 days after the
expiration of the first 30-day extension.  The notice to the claimant
of the first or second 30-day extension shall explain the standards on which
entitlement of a benefit is based, the unresolved issues that prevent a decision
on the claim and the additional information needed to resolve such
issues.  To the extent that the Committee requests an extension due to
the failure of the claimant to submit information necessary to decide a claim,
the period of making the benefit determination described in this paragraph shall
be tolled from the date on which the notification of the extension is sent to
the claimant until the date on which the claimant responds to the request for
additional information.  The claimant shall be afforded at least 45
days within which to provide the specified information.

     

    
      
         

      

      
        42

        
          

        

      

      
         

      

    

    17.02             Denial of
Claim

    

    Whenever a claim for benefits by a
claimant has been denied by the Committee, in whole or in part, a notice,
prepared in a manner calculated to be understood by such individual, must be
provided by written or electronic means and must set forth:

    

    (a)           the
specific reason or reasons for the denial;

    

    (b)           the
specific reference to the pertinent Plan provision(s) on which the denial is
based;

    

    (c)           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;

    

    (d)           an
explanation of the Plan’s claim review procedure and the time limits applicable
to such procedures and a statement of the claimant’s right to bring a civil
action under Section 502(a) of ERISA following an adverse determination upon
review.

    

    In the case of an adverse determination
of a claim for disability benefits in accordance with Section 8, the information
provided to the claimant shall also include, to the extent necessary, the
information set forth in Employee Benefits Security Administration Regulation
2560.503-1(g)(1)(v).

    

    17.03             Remedies Available to
Claimants

    

    Upon denial of his claim by the
Committee, the claimant may:

    

    (a)           request
a review upon written application to the Plan;

    

    (b)           review
and receive copies of all documents, records and other information relevant to
claimant’s claim for benefits; and

    

    (c)           submit
issues and comments in writing to a named fiduciary.

    

    The claimant will have 60 days [180
days in the case of a claim for disability benefits] after receipt of the
notification of a denial of his or her claim to request a review of such denied
claim.

    

    The named fiduciary will consider all
information submitted by the claimant, regardless of whether the information was
part of the original claim.  A decision by a named fiduciary will be
made within a reasonable period of time and not later than 60 days [45 days in
the case of a claim for disability benefits] after the named fiduciary’s receipt
of a request for review, unless special circumstances require an extension of
the time for processing.  In the case of such extension, a decision
will be rendered as soon as possible, but not later than 120 days [90 days in
the case of a claim for disability benefits] after receipt of a request for
review.  The claimant will be notified of the extension prior to the
expiration of the 45- or 60-day period described in this
paragraph.  Such notice to the claimant shall indicate the special
circumstances requiring the extension and the date by which the named fiduciary
expects to render a decision.

     

    
      
         

      

      
        43

        
          

        

      

      
         

      

    

    The decision on review by a named
fiduciary will be in writing and will include specific reasons for the decision,
written in a manner calculated to be understood by the claimant, and specific
references to the pertinent Plan provisions on which the decision is
based.  The decision shall also include a statement of the claimant’s
right to bring an action under Section 502(a) of ERISA.  Any action
brought by a claimant under Section 502(a) of ERISA is required to be brought
within one year of the date the decision on review was received by the
claimant.

    

    In the case of a claim for disability
benefits: (a) the review of the denied claim shall be conducted by a named
fiduciary who is neither the individual who made the benefit determination nor a
subordinate of such person; and (b) no deference shall be given to the
initial benefit determination.  For issues involving medical judgment,
the named fiduciary must consult with an independent health care professional
who may not be the health care professional who decided the initial
claim.

     

    
      
         

      

      
        44

        
          

        

      

      
         

      

    

    SECTION 18 - TOP HEAVY
RULES

    

    18.01             Preamble and
Definitions

    

    If, for any Plan Year, the Plan is a
Top Heavy Plan, the provisions of Section 18.03 will be applicable.

    

    For the purpose of this section, the
term “Employer” includes all Affiliates, and the term “Employee” includes all
employees of the Affiliates.

    

    The following definitions are
applicable to this Section 18.01:

    

    (a)           Key
Employee:  An Employee or former Employee (including a deceased
employee) who at any time during the Plan Year that includes the Determination
Date is (i) an officer of the Employer with annual compensation exceeding
$130,000 [as adjusted in accordance with Code Section 416(i)(1)]; (ii) a 5%
owner of the Employer; or (iii) a 1% owner of the Employer who has annual
compensation of more than $150,000.  For purposes of this section,
“annual compensation” means compensation as defined in
Section 3.01.  The determination of who is a Key Employee will be
made in accordance with Code Section 416(i)(1) and the regulations
thereunder.

    

    (b)           Non-Key
Employee:  An Employee or former Employee of the Employer who is not a
Key Employee.  The Beneficiary of a Non-Key Employee will be treated
as a Non-Key Employee, and the Beneficiary of a former Non-Key Employee will be
treated as a former Non-Key Employee.

    

    (c)           Determination
Date:  For all Plan Years subsequent to the first Plan Year, the last
day of the preceding Plan Year.  For the first Plan Year, the last day
of such Plan Year.

    

    (d)           Permissive
Aggregation Group:  The Required Aggregation Group of plans plus any
other plan or plans of the Employer that, when considered as a group with the
Required Aggregation Group, would continue to satisfy the requirements of Code
Sections 401(a)(4) and 410.

    

    (e)           Required
Aggregation Group:  (i) Each qualified plan of the Employer in
which at least one Key Employee participates or participated at any time during
the Plan Year containing the Determination Date or any of the four preceding
Plan Years (regardless of whether the Plan has terminated); and (ii) any
other qualified plan of the Employer that enables a plan described in (i) of
this subsection (e) to meet the requirements of Code Sections 401(a)(4) or
410.

    

    (f)           Top
Heavy Plan:  The Plan is a Top Heavy Plan if:

    

    
      	
               
      

            	
              (i)

            	
              the
      top heavy ratio for the Plan exceeds 60% and the Plan is not part of a
      Required or Permissive Aggregation
Group;

            

    

     

    
      
         

      

      
        45

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (ii)

            	
              the
      top heavy ratio for the Plan exceeds 60% and the Plan is part of a
      Required Aggregation Group but not part of a Permissive Aggregation Group;
      or

            

    

    

    
      	
               
      

            	
              (iii)

            	
              the
      top heavy ratio for the Plan exceeds 60% and the Plan is part of a
      Required Aggregation Group and part of a Permissive Aggregation
      Group.

            

    

    

    (g)           Top
Heavy Compensation:  Top Heavy Compensation means “compensation” as
defined in Section 415(c)(3) of the Code and Treasury Regulation
1.415(2)(d)(11)(i).

    

    18.02             Top Heavy
Ratio

    

    The top heavy ratio is determined as
follows:

    

    (a)           If
the Employer maintains one or more defined contribution plans (including any
simplified employee pension plan) and the Employer has not maintained any
defined benefit plan that, during the five-year period ending on the
Determination Date(s), has or has had accrued benefits, the top heavy ratio for
this Plan alone or for the Required or Permissive Aggregation Group, as
appropriate, is a fraction, the numerator of which is the sum of the account
balances of all Key Employees as of the Determination Date(s) [including any
part of any account balance distributed in the one-year period ending on the
Determination Date(s)], (or a five-year period ending on the Determination Date
in the case of a distribution made for a reason other than severance from
employment, death or disability and in determining whether the Plan is top heavy
for Plan Years beginning before January 1, 2002), and the denominator of
which is the sum of all account balances [including any part of any account
balance distributed in the one-year period ending on the Determination Date(s)],
(or a five-year period ending on the Determination Date in the case of a
distribution made for a reason other than severance from employment, death or
disability and in determining whether the Plan is top heavy for Plan Years
beginning before January 1, 2002), both computed in accordance with Code
Section 416 and the regulations thereunder.  The preceding sentence
shall also apply to distributions under a terminated plan which, had it not been
terminated, would have been aggregated with the Plan under Code Section
416(g)(2)(A)(i).  Both the numerator and denominator of the top heavy
ratio are increased to reflect any contribution not actually made as of the
Determination Date but which is required to be taken into account on that date
under Code Section 416 and the regulations thereunder.

    

    (b)           If
the Employer maintains one or more defined contribution plans (including any
simplified employee pension plan) and the Employer maintains or has maintained
one or more defined benefit plans that, during the five-year period ending on
the Determination Date(s), has or has had any accrued benefits, the top heavy
ratio for any Required or Permissive Aggregation Group, as appropriate, is a
fraction, the numerator of which is the sum of account balances under the
aggregated defined contribution plan or plans for all Key Employees and the
present value of accrued benefits under the aggregated defined benefit plan or
plans for Key Employees as of the Determination Date(s), and the denominator of
which is the sum of the account balances under the aggregated defined
contribution plan or plans for all Participants and the present value of accrued
benefits under the defined benefit plan or plans for all Participants as of the
Determination Date(s), all determined in accordance with Code Section 416 and
the regulations thereunder.  The accrued benefits under a defined
benefit plan in both the numerator and denominator of the top heavy ratio are
increased for any distribution of an accrued benefit made in the one-year period
ending on the Determination Date (or a five-year period ending on the
Determination Date in the case of a distribution made for a reason other than
severance from employment, death or disability and in determining whether the
Plan is top heavy for Plan Years beginning before January 1,
2002).  The preceding sentence shall also apply to distributions under
a terminated plan which, had it not been terminated, would have been aggregated
with the Plan under Code Section 416(g)(2)(A)(i).

     

    
      
         

      

      
        46

        
          

        

      

      
         

      

    

    (c)           For
purposes of (a) and (b) above, the value of account balances and the present
value of accrued benefits will be determined as of the most recent Valuation
Date that falls within or ends with the 12-month period ending on the
Determination Date, except as provided in Code Section 416 and the regulations
thereunder for the first and second plan years of a defined benefit
plan.  The account balances and accrued benefits of a Participant
(i) who is not a Key Employee but who was a Key Employee in a prior year;
or (ii) who has not been credited with at least one Hour of Service with
any Employer maintaining the Plan at any time during the one-year period ending
on the Determination Date (or a five-year period ending on the Determination
Date in the case of a distribution made for a reason other than severance from
employment, death or disability and in determining whether the Plan is top heavy
for Plan Years beginning before January 1, 2002) will be
disregarded.  The calculation of the top heavy ratio and the extent to
which distributions, rollovers and transfers are taken into account will be made
in accordance with Code Section 416 and the regulations
thereunder.  Deductible employee contributions will not be taken into
account for purposes of computing the top heavy ratio.  When
aggregating plans, the value of account balances and accrued benefits will be
calculated with reference to the Determination Date(s) that fall within the same
calendar year.

    

    (d)           The
accrued benefit of a Participant other than a Key Employee shall be determined
under (i) the method, if any, that uniformly applies for accrual purposes
under all defined benefit plans maintained by the Employer; or (ii) if
there is no such method, as if such benefit accrued not more rapidly than the
slowest accrual rate permitted under the fractional rule of Section 411(b)(1)(C)
of the Code.

    

    18.03             Minimum
Contributions

    

    For each Plan Year in which the Plan is
top heavy, each Participant who is a Non-Key Employee and who is employed on the
last day of the Plan Year (and without regard to such person’s Hours of Service
and amount of Compensation in such Plan Year) is required to receive an annual
allocation of contributions (disregarding Social Security benefits) equal to at
least 3% of his Top Heavy Compensation; provided that, if the allocation of
contributions expressed as a percentage of Top Heavy Compensation allocated to a
Key Employee [including all salary deferral contributions other than catch-up
contributions made in accordance with Section 401(k) of the Code allocated for
the benefit of the Key Employee] for a Plan Year is less than 3%, such
percentage will be substituted for 3%.  The amount described in the
preceding sentence will be referred to in this Section 18.03 as the “top heavy
minimum contribution.”  For each year in which the Employer maintains
a defined benefit plan in addition to the Plan, the requirements of this
paragraph will be satisfied for all Non-Key Employees who participate in both
plans by providing each Non-Key Employee with the 2% minimum annual benefit
provided under the top heavy provisions of the defined benefit
plan.  For each year in which the Employer maintains another defined
contribution plan in addition to the Plan, the top heavy minimum contribution
described in this paragraph may be provided for Non-Key Employees who
participate in both plans by this Plan.

     

    
      
         

      

      
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    For each Plan Year in which the Plan is
required to provide the top heavy minimum contribution, the Employer will
contribute to the Account of each Non-Key Employee required to receive an
allocation pursuant to the previous paragraph an amount equal to the difference
between the amount necessary to provide such Non-Key Employee with the top heavy
minimum contribution for such year and the amount previously allocated to such
Non-Key Employee’s Account consisting of contributions made by the Employer
[including matching contributions within the meaning of Treasury Regulation
1.401(m)-1(f)(12)] for such year.  Top heavy minimum contributions
will consist solely of contributions made by the Employer.  After-tax
contributions [within the meaning of Treasury Regulation 1.401(m)-1(f)(6)] and
“elective deferrals” [within the meaning of Code Section 402(g)(3)(A)], if
permitted by the Plan to be allocated to a Non-Key Employee’s Account, may not
be used to satisfy the top heavy minimum contribution.

     

    
      
         

      

      
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    SECTION 19 -
MISCELLANEOUS

    

    19.01             Employer’s Right to
Terminate Employees

    

    
      The right
of an Employer to terminate the employment of any of its Employees will not be
affected by an Employee’s participation in the Plan.

    

     

    19.02             Gender and
Number

     

    
      Wherever
used in the Plan, a masculine pronoun will refer to both the masculine and
feminine; and a singular pronoun will refer to both singular and plural, unless
the context clearly requires otherwise.

       

    

    19.03             Merger or
Consolidation

    

    
      The
Committee may authorize the merger, transfer or consolidation of a Participant’s
Accounts to another qualified plan.  In case of any merger or
consolidation with, or transfer of assets or liabilities to, any other plan,
each participant in such other plan would (if the other plan then terminated)
receive a benefit immediately after the merger, consolidation or transfer that
is equal to, or greater than, the benefit he would have been entitled to receive
immediately before the merger, consolidation or transfer (if the Plan had then
terminated).  To the extent required by Code Section 411(d)(6), the
Plan will preserve the forms of benefits relating to that portion of a
Participant’s Account acquired as a result of a merger, consolidation or
transfer of assets or liabilities with any other plan.

    

    

    19.04             Named
Fiduciaries

    

    The named fiduciaries of the Plan will
be the Committee, the Trustee and the Sponsor.

    

    19.05             Limitations on Payment;
Missing Participant

     

    
      
        If, in
the judgment of the Committee, a Participant or Beneficiary is legally,
physically or mentally incapable of personally receiving and executing a receipt
for any distribution or payment due him under the Plan, the distribution or
payment may be made to the person’s guardian or other legal representative (or,
if none is known, to any other person or institution who has custody of the
person), and that distribution or payment will constitute a full discharge of
any obligation with respect to the amount paid or distributed.

        

        If the
Committee cannot locate a Participant or Beneficiary at the time payments are
due, the Account of such Participant or Beneficiary may be cancelled and such
amounts paid to the Employer.  In such case, the Account of the
Participant or Beneficiary will be reinstated if such individual subsequently
files a claim for his or her benefit under the Plan.

      

       

    

    
      
         

      

      
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    19.06             Limitation on Reversion of
Contributions

    

    Prior to the satisfaction of all
liabilities to Participants and Beneficiaries, except as provided in subsections
(a) through (d) below, all assets of the Trust Fund will be held for the
exclusive benefit of Participants and their Beneficiaries and may not revert to
the Employer.

    

    (a)           In
the event any contribution made by the Employer to the Plan is made based upon a
mistake of fact, such contribution may be returned to the Employer within one
year after the date it was contributed to the Plan.

    

    (b)           In
the event that the Office of District Director of the Internal Revenue Service
rules, upon initial application of the Sponsor for approval of the Plan, and
after an opportunity has been given the Sponsor to make any changes to the Plan
and Trust Agreement which may be suggested by such office for approval of the
Plan and Trust Agreement, that the Plan and Trust Agreement fail to qualify as
tax exempt under Sections 401 and 501 of the Code, then the Plan and Trust
Agreement will become null and void and the then market value of the
contributions made by the Employer to the Trust prior to the date of such
initial determination as to qualification will be returned by the Trustee within
one year of the date of denial of qualification.  This subsection (b)
will not be applicable unless the application by the Employer is made by the
time prescribed by law for filing the Employer’s tax return for the taxable year
in which the Plan is adopted, or such later date as the Secretary of the
Treasury may prescribe.

    

    (c)           In
the event that a contribution made by the Employer to the Plan is disallowed as
a tax-deductible expense under Section 404 of the Code, then such contribution,
to the extent that the deduction is disallowed, less the net losses, if any,
attributed thereto, will be returned to the Employer within one year after the
disallowance of the deduction.

    

    (d)           In
the event that the Plan is terminated, all amounts held in a suspense account
will be allocated to the Accounts of active Participants in a nondiscriminatory
manner, as determined by the Committee.  To the extent that any
amounts held in the suspense account cannot be allocated due to the application
of Section 415 of the Code, the excess amounts will be treated as a reversion
and distributed to the Sponsor or Employer after the payment to Participants and
Beneficiaries of their Accounts.

    

    19.07             Additional Service
Credits

    

    If a Leased Employee becomes eligible
to participate in the Plan, such Employee’s service while a Leased Employee, or
such service during a period in which the Employee would have been a Leased
Employee but for the fact that the Employee did not work for a one-year period
as a substantially full-time employee, will be considered in determining any
eligibility or vesting service required to be completed by a Participant under
the Plan.

    

    The Committee may, on a
nondiscriminatory basis, provide that the period of time in which an authorized
leave of absence has occurred will be included in any eligibility or vesting
service required to be completed by a Participant under the Plan.

     

    
      
         

      

      
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    19.08             Uniformed
Services Employment and Reemployment Rights Act

    

    This section is effective as of
December 12, 1994 or the Plan’s initial effective date, if
later.  Notwithstanding any provisions of the Plan to the contrary,
contributions, benefits and years of service with respect to Qualified Military
Service will be provided in accordance with Code Section
414(u).

    
      
         

      

      
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    SECTION 20 - ADOPTION
BY

    AFFILIATE OR PARTICIPATING
EMPLOYER

    

    20.01             Adoption by Affiliate or
Participating Employer

     

    With the approval of the Sponsor, an
Affiliate or Participating Employer may adopt the Plan and cause its eligible
employees to become Participants in accordance with its terms.  In
such case, the defined terms “Employee,” “Employer” and “Participant” will be
interpreted as being applicable to the Affiliate or Participating Employer and
its employees to the extent necessary to carry out the foregoing
intent.

    

    20.02             Administration

     

    Notwithstanding the foregoing, the
Sponsor has the exclusive right to appoint the Committee described in
Section 13, to amend the Plan and to terminate the Plan.  Unless
otherwise provided by the Plan, neither an Affiliate nor a Participating
Employer has any discretionary authority with regard to the administration of
the Plan.

    

    20.03             Common
Fund

     

    The Trustee of the Plan need not
earmark or keep separate the assets attributable to each Affiliate or
Participating Employer but may commingle them with the assets of the
Trust.  The Trust will be available to pay benefits to Participants
and their Beneficiaries without distinction as to either the Affiliate or
Participating Employer to which particular assets or amounts are
attributable.    Any Affiliate or Participating Employer
that adopts this Plan shall agree to be covered by the Trust Agreement
established by the Sponsor and Trustee.

    

    20.04             Withdrawal, Termination and
Amendment

     

    Any Affiliate or Participating
Employer, by action of its governing authority and notice to the Committee and
the Trustee, may withdraw from the Plan or may terminate its participation in
the Plan with respect to its Employees without affecting the rights of the
Sponsor or any other Affiliate or Participating Employer.  A
withdrawing Affiliate or Participating Employer may arrange for the continuation
of the Plan in separate form for its own employees, with such amendments as it
may deem proper and may arrange for continuation of the Plan by merger with an
existing plan and trust and transfer of Trust Fund assets.

    

    Notwithstanding anything contained
herein to the contrary, the Sponsor, by action of its governing body, in its
absolute discretion, may terminate an Affiliate’s or Participating Employer’s
participation at any time, without the consent of the Affiliate or Participating
Employer.

     

    
      
         

      

      
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    20.05             Discrimination
Testing

    

    The provisions of Code Sections
401(a)(4), 401(k)(3), 401(m)(2) and 416 will be separately applicable to each
Participating Employer and any other employer that is required to be combined
with such Participating Employer pursuant to Code Section 414(b) or
(c).

    
      
         

      

      
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    SECTION 21 - VOTING
RIGHTS

    

    21.01             Participant Voting Rights
with Respect to Allocated Shares

    

    If the Employer Shares are of a
“registration-type class of securities,” all Employer Shares held in the Trust
Fund and allocated to a Participant’s or Beneficiary’s Account will be voted by
the Trustee pursuant to written instructions received from the Participant or
Beneficiary.  In such event, the Participant or Beneficiary will be
furnished with the information statement and other materials provided to
shareholders, together with a form upon which confidential voting directions may
be given to the Trustee (or if the Trustee is not independent, to an independent
third party designated by the Committee).

    

    If the Employer Shares are not of a
“registration-type class of securities,” all Employer Shares held in the Trust
Fund and allocated to a Participant’s or Beneficiary’s Account will be voted by
the Trustee pursuant to written instructions received from the Participant and
Beneficiary with respect to all corporate matters relating to the approval of a
corporate merger or consolidation, recapitalization, reclassification,
liquidation, dissolution, sale of substantially all assets of a trade or
business or such similar transaction as the Secretary may provide in
regulations.  In such event, the Participant or Beneficiary will be
furnished with the information statement and other materials provided to
shareholders, together with a form upon which confidential voting directions may
be given to the Trustee (or if the Trustee is not independent, to an independent
third party designated by the Committee).  With respect to all other
matters, Employer Shares will be voted by the Trustee in its
discretion.

    

    For the purpose of this Section 21.01,
“registration-type class of securities” has the meaning as set forth in Code
Section 409(e)(4).

    

    With respect to Employer Shares for
which the Trustee does not receive written instructions from a Participant or
Beneficiary, such Shares will be voted by the Trustee (in the same portion as
the voted shares).

    

    21.02             Participant Voting Rights
with Respect to Unallocated Shares

    

    All Employer Shares held in the Trust
Fund and not allocated to the Account of a Participant or Beneficiary will be
voted by the Trustee in the same proportion as the voted
shares.  Notwithstanding the foregoing, if at the time Employer Shares
are required to be voted no shares have been allocated, the Committee will vote
such shares.

     

    
      
         

      

      
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    SECTION 22 -
DEFINITIONS

    

    Whenever used herein, the following
words and phrases have the meanings specified below.  Additional words
and phrases may be defined in the text of the Plan.

    

    “Account” means a
Participant’s Matching Contribution Account, Section 401(k) Account and Rollover
Account.  “Account,” when used in the Plan, will also mean, to the
extent the context so requires, the aggregate of such accounts.

    

    “Affiliate” means, except for
the purpose of determining the limitations on Annual Additons set forth in
Section 3.01, any other employer that, together with the Employer, is a member
of: (a) a controlled group of corporations or of a commonly controlled
trade or business, as defined in Code Sections 414(b) and (c); (b) an
affiliated service group as defined in Code Section 414(m); or (c) any
other organization described in Code Section 414(o) (to the extent required to
be aggregated by the Secretary of Treasury).  For the purpose of
determining the limitations on Annual Additions set forth in Section 3.01, the
term “Affiliate” has the meaning as set forth in this definition, as modified by
Section 415(h).

    

    “Annual Additions” means the
sum of the following amounts for a Limitation Year:

    

    (a)           Matching
Contributions and Section 401(k) Contributions allocated to a Participant’s
Account pursuant to Section 2;

    

    (b)           amounts
allocated after March 31, 1984 to an individual medical account, as defined
in Code Section 415(l)(2), which is part of a pension or annuity plan maintained
by the Employer;

    

    (c)           amounts
derived from contributions paid or accrued after December 31, 1985 in
taxable years ending after such date which are attributable to postretirement
medical benefits allocated to the separate account of a “key employee” [as
defined in Section 416(i) of the Code] under a welfare benefit fund [as defined
in Section 419(e) of the Code] maintained by the Employer.  The
amounts described under this subsection (c) will not be subject to the 25% of
compensation limit provided in Section 3.01;

    

    (d)           amounts
consisting of employer contributions (including elective deferral
contributions), employee after-tax contributions or forfeitures allocated to any
other defined contribution plan or simplified employee pension (other than a
salary reduction simplified employee pension) of the Employer or an Affiliate to
which the Participant is or was a participant.

    

    In determining the amount set forth in
subsection (a) above, an excess Annual Addition determined in accordance with
Section 3.01 that is applied to reduce Employer contributions in a Limitation
Year will be considered an Annual Addition for the year in which such
contribution is applied.

     

    
      
         

      

      
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    The amounts described in subsections
(a) and (d) above will include amounts treated as “excess deferrals” [within the
meaning of Treasury Regulation 1.402(g)-1(e)(1)(iii)] [unless distributed in
accordance with Treasury Regulation 1.402(g)-1(e)(2) or (3)], “excess
contributions” [within the meaning of Treasury Regulation 1.401(k)-6) or “excess
aggregate contributions” [within the meaning of Treasury Regulation 1.401(m)-5]
for a Limitation Year.  Effective on and after January 1, 2002,
Annual Additions shall not include catch-up contributions deferred by the
Participant in accordance with Section 414(v) of the Code.

    

    “Beneficiary” means the
individual, individuals or trust designated by the Participant or determined in
accordance with Section 7 to receive any death benefit payable under the
Plan.

    

    “Code” means the Internal
Revenue Code of 1986, as may be amended from time to time and corresponding
provisions of future federal internal revenue codes.

    

    “Compensation” means wages,
within the meaning of Section 3401(a), and all other payments of compensation to
an Employee by the Employer during the Plan Year (in the course of the
Employer’s trade or business) for which the Employer is required to furnish the
Employee a written statement under Sections 6041(d), 6051(a)(3) and 6052;
provided compensation paid by the Employer during any Plan Year in excess of the
limit set forth in Code Section 401(a)(17)(A), as adjusted by Code Section
401(a)(17)(B), will be excluded.  Compensation must be determined
without regard to any rules under Section 3401(a) of the Code that limit the
remuneration included in wages based on the nature or location of the employment
or the services performed [such as the exception for agricultural labor in
Section 3401(a)(2) of the Code].

    

    For the purpose of a Participant’s
first Plan Year of participation, only Compensation paid to such Participant
after the date on which he begins to participate in the Plan will be considered
for purposes of determining contributions to the Plan.

    

    Compensation will be determined without
regard to (a) any reduction in compensation resulting from participation in
a Section 401(k) cash or deferred arrangement or any arrangement pursuant to
Section 125, Section 132(f), Section 402(h), Section 403(b), Section 414(h)(2)
or Section 457 of the Code; and (b) any rules that limit remuneration
included in wages based on the nature or location of employment or services
performed.

    

    “Effective Date” for this
amended and restated Plan means, except where separately stated, January 1, 2002.

    

    “Employee” means any person
who is classified by the Employer as a common law employee. Notwithstanding the
foregoing, the term “Employee” will exclude a Leased Employee or individuals
whose terms of employment are established by a leasing contract. If an
individual who is not classified as a common law employee is determined by a
court of law or governmental agency to be a common law employee, such employee
will remain excluded from participation in the Plan unless the Plan is amended
to specifically provide for such employee’s inclusion.

     

    
      
         

      

      
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    “Employer” means the Sponsor
and any Participating Employer or Affiliate that participates in the
Plan.  As of the date this document is executed, Park National Bank,
Vision Bank and Guardian Financial Services Company are Affiliates that
participate in the Plan.

    

    “Employment Commencement Date”
means the date on which an Employee first performs an Hour of Service for the
Employer or an Affiliate or the date on which an Employee first performs an Hour
of Service for the Employer or an Affiliate after a One-Year Break in
Service.

    

    “Employer Shares” means
securities which constitute “employer securities” under Section 409(1) of the
Code and “qualifying employer securities” under Section 4975(e)(8) of the Code
and Section 407(d)(5) of ERISA.

    

    “Enrollment Election” means an
agreement, on a form or by a method prescribed by the Committee, between a
Participant and the Employer, providing for the reduction of Compensation to be
paid to the Participant after the date such agreement is made and the making of
Section 401(k) Contributions to the Plan.  Such election will remain
in effect until modified or terminated by the Participant.  Except for
occasional, bona fide administrative considerations, an Enrollment Election
deferring Section 401(k) Contributions cannot precede the performance of
services with respect to which the contributions are made, or when the
compensation subject to the Enrollment Election is paid, if earlier (such as in
the case of a signing bonus).  In addition, an Enrollment Election can
only be made with respect to amounts that are not currently available to the
Participant on the date of the election.

    

    “Entry Date” means the first
day of January, April, July or October, but not earlier than the later of the
date the Plan first became effective or the Participant’s Employment
Commencement Date.

    

    “Highly-Compensated Employee”
means any Employee of the Employer who (a) was a “5% owner,” as such term
is defined by Code Section 416(i)(1)(B)(i) and applicable regulations
thereunder, at any time during the current Plan Year or preceding Plan Year; or
(b) received “compensation,” as such term is defined by Code Section
414(q)(4) and applicable regulations thereunder, in excess of $80,000 (or any
increased amount, as specified by the Secretary of the Treasury) for the
look-back year.  The Sponsor elects to limit the number of Employees
in (b) above to the top paid group of employees.  “Top paid group” has
the meaning as set forth in Code Sections 414(q)(3) and 414(q)(5) and applicable
regulations thereunder.  The “look-back year” will mean the preceding
Plan Year.

    

    “Hour of Service”
means:

    

    (a)           each
hour for which an Employee is paid, or entitled to payment, for the performance
of duties for the Employer or an Affiliate.  These hours will be
credited to the Employee for the computation period or periods in which the
duties are performed; and

     

    
      
         

      

      
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    (b)           each
hour for which an Employee is paid, or entitled to payment, by the Employer or
an Affiliate on account of a period of time during which no duties are performed
(irrespective of whether the employment relationship has terminated) due to
vacation, holiday, illness, incapacity (including disability), layoff, absence
for maternity or paternity reasons, jury duty, military duty or leave of
absence.  No more than 501 Hours of Service will be credited under
this paragraph for any single continuous period (whether or not such period
occurs in a single computation period) unless such period is a period of
Qualified Military Service.  An Employee will be credited with Hours
of Service for all periods of Qualified Military Service in accordance with the
Uniformed Services Employment and Reemployment Rights Act.  Hours
under this paragraph will be calculated and credited pursuant to Section
2530.200b-2 of the Department of Labor Regulations which are incorporated herein
by this reference; and

    

    (c)           each
hour for which back pay, irrespective of mitigation of damages, is either
awarded or agreed to by the Employer or an Affiliate.  The same Hours
of Service will not be credited both under subsection (a) or subsection (b), as
the case may be, and under this subsection (c).  The hours credited
pursuant to this subsection (c) will be credited to the computation period or
periods to which the award or agreement pertains rather than the computation
period in which the award, agreement or payment is made; and

    

    (d)           if
records of actual hours are not maintained for an Employee, an Employee will be
given credit for 190 Hours of Service if he is employed at any time during the
month.

    

    “Leased Employee” means any
person (other than an employee of the recipient) who, pursuant to an agreement
between the recipient and any other person (leasing organization), has performed
services for the recipient [or for the recipient and related persons determined
in accordance with Sections 414(n) and 414(o) of the Code] on a substantially
full-time basis for a period of at least one year and such services are
performed under the primary direction or control of the recipient
employer.  Contributions or benefits provided a Leased Employee by the
leasing organization which are attributable to services performed for the
recipient employer will be treated as provided by the recipient
employer.

    

    A Leased Employee will also not be
considered an employee of the recipient (and thus not otherwise an Employee) if
(a) such employee is covered by a money purchase pension plan providing
(i) a nonintegrated employer contribution rate of at least 10% of
compensation, as defined in Code Section 415(c)(3), but including amounts
contributed by the employer pursuant to a salary reduction agreement which are
excludable from the employee’s gross income under Section 125, Section
132(f)(4), Section 402(e)(3), Section 402(h) or Section 403(b) of the Code;
(ii) immediate participation; and (iii) full and immediate vesting;
and (b) Leased Employees do not constitute more than 20% of the recipient’s
non-highly-compensated work force.

    

    A Leased Employee will not be
considered an Employee of an Employer unless the definition of Employee
specifically provides for such inclusion.  A Leased Employee may be
considered as an eligible employee solely for the purpose of Section 410(b) of
the Code to the extent required by such section and applicable regulations
thereunder.

    

    “Limitation Year” means the
Plan Year.

     

    
      
         

      

      
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    “Matching Contribution” means
the amount contributed by the Employer on account of a Participant’s Section
401(k) Contributions.  To the extent a Participant’s Section 401(k)
Contribution is required to be returned pursuant to Section 3.03(a) or 3.03(f),
a pro rata share of the Participant’s Matching Contribution, if any, will be
forfeited and used to reduce subsequent contributions made by the Employer to
the Plan.  Such forfeited amounts will not be treated as Matching
Contributions for the purpose of Section 3.04(b).

    

    “Matching Contribution
Account” means the portion of a Participant’s Account consisting of
Matching Contributions, as adjusted in accordance with Section 5.

    

    “Non-Highly-Compensated
Employee” means any employee of the Employer who is not a
Highly-Compensated Employee.

    

    “Normal Retirement Age” means
the day on which the Participant attains age 65.

    

    “One-Year Break in Service”
means a 12-month period during which a Participant has not completed more than
500 Hours of Service.

    

    In the case of an Employee who is
absent from work for maternity or paternity reasons, such Employee will have
credited, solely for purposes of determining whether a One-Year Break in Service
has occurred for eligibility and vesting, if required, in the year in which the
absence begins if necessary to prevent a One-Year Break in Service for such
year; or in the following year, the number of hours that would normally have
been credited but for such absence; or in any case in which such hours cannot be
determined, 8 Hours of Service per day of such absence.  The total
number of hours treated as Hours of Service under this paragraph will not exceed
501 hours.  For purposes of this paragraph, an absence from work for
maternity or paternity reasons means an absence (a) by reason of pregnancy
of the Participant; (b) by reason of the birth of a child of the
Participant; (c) by reason of the placement of a child with the Participant
in connection with the adoption of such child by such Participant; or
(d) for purposes of caring for such child for a period beginning
immediately following such birth or placement.

    

    An Employee will not be treated as
having a One-Year Break in Service as a result of any periods of Qualified
Military Service.

    

    “Participant” means either
(a) an Employee who is participating in the Plan in accordance with Section
1.01 for whom an Account is being maintained; or (b) a former Employee of
the Employer for whom an Account is being maintained.

    

    “Participating Employer” is an
employer related by ownership to the Employer but which is not considered an
Affiliate.

    

    “Plan” means the Park National
Corporation Employees Stock Ownership Plan, as amended, as embodied in the Plan
document and amendments made hereto from time to time.

    

    “Plan Administrator” means the
Sponsor.

    

    “Plan Year” means the fiscal
year of the Plan beginning on January 1 and ending on
December 31.

     

    
      
         

      

      
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    “Qualified Military Service”
means any service in the “uniformed services” (as defined in Chapter 43 of
Title 38 of the United States Code) by an Employee relating to reemployment
initiated on or after December 12, 1994, if such Employee is entitled to
reemployment rights under such chapter with respect to such
service.

    

    “Rollover Account” means so
much of a Participant’s Account as is attributable to Rollover Contributions, as
adjusted in accordance with Section 5.

    

    “Rollover Contribution” means
the amount contributed by an Employee as a rollover contribution in accordance
with Section 402 of the Code.

    

    “Section 401(k) Account” means
the portion of the Account of a Participant consisting of Section 401(k)
Contributions, as adjusted in accordance with Section 5.

    

    “Section 401(k) Contribution”
means the amount contributed by the Employer to the Plan as a result of a
Participant’s election pursuant to an Enrollment Election to reduce his
Compensation.

    

    “Sponsor” means Park National
Corporation, or any successor employer that assumes the responsibilities and
liabilities of the Plan.

    

    “Spouse” or “Surviving Spouse” means an
individual who is legally married to the Participant, provided that an
individual who was formerly married to the Participant will be treated as the
Spouse or Surviving Spouse to the extent provided under a qualified domestic
relations order, as described in Code Section 414(p).

    

    “Trust” or “Trust Fund” means the fund
established pursuant to the terms of the Trust Agreement, which fund may be
comprised of one or more investment funds.

    

    “Trust Agreement” means the
agreement by and between the Sponsor and the Trustee for the management,
investment and disbursement of assets held in the Trust Fund.

    

    “Trustee” means the bank,
trust company and/or individual designated by the Sponsor to hold and invest the
Trust Fund and to pay benefits and expenses in accordance with the terms and
provisions of the agreement by and between the Sponsor and such bank, trust
company and/or individual.  As of the Effective Date, the Trustee is
Park National Bank.

    

    “Valuation Date” means the
last day of the Plan Year and any other date or dates fixed by the Committee for
the valuation of assets and adjustments of Accounts.

     

    
      
         

      

      
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    IN WITNESS WHEREOF, the
undersigned has caused this Plan to be executed by a duly authorized individual
this 31st
day of December                             ,
2008.

    

    
      	 
      	
              PARK
      NATIONAL CORPORATION,

            
	 
      	
              Sponsor

            
	 
      	 
      
	 
      	
              By:

            	
              /s/ David L. Trautman

            
	 
      	 
      	 
      
	 
      	
              Name
      (Print):

            	
              David L. Trautman

            
	 
      	 
      	 
      
	 
      	
              Title:

            	
              President

            
	 
      	 
      	 
      
	 
      	
              PARK
      NATIONAL BANK,

            
	 
      	
              Affiliate

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/ David L. Trautman

            
	 
      	 
      	 
      
	 
      	
              Name
      (Print):

            	
              David L. Trautman

            
	 
      	 
      	 
      
	 
      	
              Title:

            	
              President

            
	 
      	 
      	 
      
	 
      	
              GUARDIAN
      FINANCIAL SERVICES

              COMPANY,

            
	 
      	
              Affiliate

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/ Cheryl L. Snyder

            
	 
      	 
      	 
      
	 
      	
              Name
      (Print):

            	
              Cheryl L. Snyder

            
	 
      	 
      	 
      
	 
      	
              Title:

            	
              Board of Directors

            
	 
      	 
      	 
      
	 
      	
              VISION
      BANK,

            
	 
      	
              Affiliate

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/ J. W. Ginn

            
	 
      	 
      	 
      
	 
      	
              Name
      (Print):

            	
              J. W. Ginn

            
	 
      	 
      	 
      
	 
      	
              Title:

            	
              Chairman &
  CEO

            

    

     

    
      
         

      

      
        61Exhibit
10.1(b)

    

    AMENDMENT
TO THE

    PARK
NATIONAL CORPORATION

    EMPLOYEES
STOCK OWNERSHIP PLAN

    FOR
THE

    PENSION
PROTECTION ACT OF 2006

    AND
OTHER GUIDANCE

     

    WHEREAS, PARK NATIONAL CORPORATION (the
“Sponsor”) has adopted the PARK
NATIONAL CORPORATION EMPLOYEES STOCK OWNERSHIP PLAN (the “Plan”);
and

    

    WHEREAS, the Plan provides that it may
be amended from time to time; and

    

    WHEREAS, the Pension Protection Act of
2006 (the “PPA”); final regulations under Section 415 of the Internal Revenue
Code of 1986, as amended (“Code”); and other guidance affect the Plan;
and

    

    WHEREAS, the following amendments to
the Plan are intended to constitute good faith compliance with the requirements
of the PPA, final regulations under Section 415 of the Code and other guidance,
and shall be construed in accordance with the PPA and guidance issued
thereunder;

    

    NOW, THEREFORE, the Plan is amended as
follows:

    

    PREAMBLE

    

    The Sponsor adopts this Amendment to
the Plan to reflect changes to the Plan as a result of the PPA, final
regulations under Section 415 of the Code and other guidance.  This
Amendment is effective as set forth below and supersedes the provisions of the
Plan to the extent those provisions are inconsistent with the provisions of this
Amendment.

    

    AMENDMENTS

    

    1.           The
fourth paragraph of Section 3.01 of the Plan shall be deleted in its entirety
and the following shall be substituted effective for Limitation Years beginning
on or after July 1, 2007:

    

    (b)           Except
as provided below, the following amounts otherwise meeting the definition of
Section 415 Compensation may only be treated as Section 415 Compensation if such
amounts are paid by the later of 21⁄2 months after “severance from employment”
[within the meaning of Treasury Regulation 1.415(a)-1(f)(5)] from the Employer
or the end of the Limitation Year that includes the date of severance from
employment from the Employer:

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (i)

            	
              regular
      payments received by the Participant after severance of employment if
      (A) the payments are regular compensation for services during the
      Participant’s regular working hours, or compensation for services outside
      the Participant’s regular working hours (such as overtime or shift
      differential), commissions, bonuses or other similar payments; and
      (B) the payments would have been paid to the Participant prior to
      severance from employment if the Participant had continued in employment
      with the Employer.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              payment
      for unused accrued bona fide sick, vacation or other leave received after
      severance from employment, but only if the Participant would have
      been able to use the leave if employment
  continued.

            

    

    

    Notwithstanding the foregoing, Section
415 Compensation shall include, regardless of whether paid within the time
period specified above, payments to an individual who does not currently perform
services for the Employer by reason of Qualified Military Service to the extent
the payments do not exceed the amounts the individual would have received if the
individual had continued to perform services for the Employer rather than
entering into Qualified Military Service.

    

    Notwithstanding the foregoing, Section
415 Compensation shall not include the following amounts: (A) amounts paid
to a Participant who is permanently and totally disabled [as defined in Code
Section 22(e)(3)]; (B) amounts that are treated as severance pay or
parachute payments [within the meaning of Section 280G(b)(2)] if paid after
severance from employment; or (C) payments under a nonqualified unfunded
deferred compensation plan which are paid after severance from
employment.

    

    For
Limitation Years beginning on or after July 1, 2007, Section 415
Compensation shall be subject to the dollar limitation set forth in Code Section
401(a)(17)(A), as adjusted by 401(a)(17)(B).

    

    If a Plan is terminated effective as of
a date other than the last day of the Plan’s Limitation Year, the Plan is
treated for purposes of this section as if the Plan was amended to change its
Limitation Year.  As a result of this deemed amendment, the Section
415(c)(1)(A) dollar limit must be prorated under the short Limitation Year
rules.

    

    (c)           The
Plan shall incorporate by reference the provisions of Section 415 of the Code
and final regulations thereunder to the extent not set forth above.

    

    2.           Section
3.02 of the Plan shall be deleted in its entirety and the following shall be
substituted effective for Limitation Years commencing on or after July 1,
2007:

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    If excess Annual Additions are the
result of Annual Additions to more than one plan of an Employer or Affiliate,
the excess Annual Additions shall first be taken from this
Plan.  Notwithstanding Section 3.01, excess Annual Additions shall be
corrected in the manner permitted by the Internal Revenue Service in accordance
with its Employee Plans Compliance Resolution System, as set forth in Rev. Proc.
2006-27, or other successor guidance.

    

    3.           The
following paragraph shall be added to the end of Section 4.02 of the
Plan:

    

    For Plan Years commencing on or after
January 1, 2007, the Plan shall permit a Participant or Beneficiary to
diversify that portion of his Section 401(k) Contribution Account holding
employer securities [within the meaning of Section 407(d)(1) of ERISA] at
periodic, reasonable times no less frequently than quarterly and in accordance
with Code Section 401(a)(35) and applicable guidance thereunder.  The
Plan shall permit a Participant or Beneficiary to diversify that portion of his
Employer Contribution Account or Matching Contribution Account [other than
Section 401(k) Contributions] which is invested is employer securities at
periodic, reasonable, times no less frequently than quarterly after such
Participant or Beneficiary has been credited with at least three “years of
service” [within the meaning of Code Section 411(a)(5)].

    

    4.           The
following shall be added to the end of the third paragraph of Section 11.04 of
the Plan effective for distribution notices for Plan Years commencing on or
after January 1, 2007:

    

    A
Participant who is eligible for a distribution from the Plan prior to his Normal
Retirement Age shall be informed of his right to defer a distribution from the
Plan and the consequences of the failure to do so.  The period for
providing the notice described in this paragraph or a notice explaining a
Participant’s right to make a rollover as further set forth in Section 11.05
shall be extended from not more than 90 days to not more than 180
days.

    

    5.           The
following shall be added to Section 11.05 of the Plan effective for
distributions from the Plan commencing on or after January 1, 2007, or as
otherwise provided below:

    

    a.           The
following shall be added to the end of Section 11.05(b)(ii) of the Plan,
“eligible retirement plan”:

    

    Effective
on and after January 1, 2008, an eligible retirement plan shall also mean a
Roth IRA, provided the distributee could have otherwise rolled over a
traditional IRA to the Roth IRA during such taxable year.  Effective
on and after January 1, 2007, with regard to a rollover from a non-spouse
Beneficiary who is a “designated beneficiary” [as defined by Treasury Regulation
1.401(a)(9)-4], an eligible retirement plan shall mean an inherited individual
retirement account or annuity. 

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    b.           The
following shall be added to the end of Section 11.05(b)(iii) of the
Plan:

    

    A
non-spouse Beneficiary who is a “designated beneficiary” [as defined by Treasury
Regulation 1.401(a)(9)-4] is a distributee with regard to the interest of such
person.

    

    6.           The
following shall be added to the end of the definition of “Compensation” set
forth in Section 21 of the Plan:

    

    With
respect to Compensation paid in Plan Years beginning on or after July 1,
2007, a Section 401(k) Contribution cannot be made with respect to amounts that
are not treated as Section 415 Limit Compensation under Section
3.01.  With respect to Compensation paid in Plan Years beginning on or
after July 1, 2007, Compensation shall not include amounts which are not
paid to the Participant by the later of 21⁄2 months after “severance from
employment” [within the meaning of Treasury Regulation 1.415(a)-1(f)(5)] from
the Employer or the end of the Limitation Year that includes the date of
severance from employment from the Employer.  Compensation shall
exclude severance payments paid after a Participant’s severance from
employment.

    

    7.           The
following shall be added to the end of the definition of “Annual Additions” set
forth in Section 21 of the Plan:

    

    Effective for Limitation Years
commencing on and after July 1, 2007, restorative payments that are used to
restore losses to the Plan resulting from actions by a fiduciary for which there
is a reasonable risk of liability for breach of fiduciary duty under
Title I of ERISA or under other applicable federal or state law, where Plan
Participants who are similarly situated are treated similarly with respect to
the payments, are not treated as Annual Additions.

    

    IN WITNESS WHEREOF, this amendment
shall be effective as of the dates set forth above.

    

    
      
        
          	 
      	 
      	
                  PARK
      NATIONAL CORPORATION

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  By:

                	
                  /s/ David L. Trautman

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  Name
      (Print): 

                	
                  David L. Trautman

                
	 
      	 
      	 
      	 
      
	 
      	 
      	
                  Title:

                	
                  President

                
	 
      	 
      	 
      	 
      
	
                  Date: 

                	
                  12/30/08

                	 
      	 
      	 
      

        

      

    
 

    
      
         

      

      
        4

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