Document:

Exhibit 10.22

AMENDMENT TO SPLIT DOLLAR AGREEMENT

 

This AMENDMEN T TO SPLIT DOLLAR AGREEMENT (this
“Amendment”) is made and entered into as of
the       day of December, 2002, by and between
HARLEY-DAVIDSON FINANCIAL SERVICES, INC. (f/k/a EAGLEMARK FINANCIAL SERVICES,
INC.), a Delaware corporation (the “Company”), and PHILLIP CHARLES ZARCONE, not
individually but as Trustee of the DONNA JOSEPHINE FRETT ZARCONE IRREVOCABLE
TRUST DATED MARCH 30, 1999 (the “Owner”).

 

WHEREAS, the Company and the Owner are parties to that
certain Split Dollar Agreement, dated March 30, 1999 (the “Agreement”),
pursuant to which the Company, among other things, agreed, as an inducement for
Donna Josephine Frett Zarcone (the “Insured”) to continue her employment with
the Company, to assist the Owner in the payment of premiums on a policy of
insurance on the life of the Insured issued by Pacific Life Insurance Company
in the initial face amount of $2,700,000 with annual premiums of $112,914 (the
“Policy”).

 

WHEREAS, pursuant to the Agreement, the Owner agreed,
in exchange for such premium assistance, under certain circumstances to return
to the Company an amount equal to the cumulative total of the premiums paid by
the Company on the Policy (its “Policy Interest”).

 

WHEREAS, the parties desire to amend the Agreement in
light of changes after the date of the Agreement in applicable tax law.

 

WHEREAS, Section 7 of the Agreement provides that the
Agreement may be amended by a writing signed by the Owner and an officer of the
Company other than the Insured.

 

NOW, THEREFORE, in consideration of the mutual
covenants contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree to amend the Agreement as follows:

 

1.             Section 2 of the
Agreement is amended and restated in its entirety to provide as follows:

 

“2.           From the date of the third
anniversary of the date of this Agreement to and including the due date for the
seventh annual premium on the Policy (the “Second Period”):

 

A.            When the annual premium on the Policy becomes due, if the
Company has not paid the premium and if the Insured is then a full-time
employee of the Company, then the Company shall pay directly to the Insured an
amount equal to the annual premium payment (not to exceed $112,914 for any such
annual premium) then due, such payment to be made at a time to allow the timely
payment of the annual premium on the Policy, and the Company shall provide
written evidence of such payment to the Owner.

 

 

B.            All payments by the Company to the Insured pursuant to
subparagraph A shall be subject to such deductions and withholding as may be
required by applicable law.

 

C.            The Company’s obligations under subparagraph A shall
immediately cease at such time, if any, that the Insured ceases to be a
full-time employee of the Company during the Second Period.

 

2.             To
confirm that the Company has no remaining interest in the Policy, Section 3 of
the Agreement is amended by deleting such section in its entirety and inserting
the following in its place:

 

“3.           [Intentionally Omitted]”

 

3.             Section 4 the Agreement is amended
and restated in its entirety to provide as follows:

 

“4.           The Owner shall be the sole and
exclusive owner of the Policy.  This
includes all the rights of “owner” under the terms of the Policy including, but
not limited to, the right to designate beneficiaries, to select settlement and
dividend options, and to surrender the Policy. 
All such rights may be exercised by the Owner without the Company’s
consent.”

 

4.             Except as expressly amended
pursuant to this Amendment, all of the terms, conditions and provisions of the
Agreement shall remain in full force and effect.

 

5.             This Amendment may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one instrument.

 

6.             The Company and the Owner
acknowledge and agree that facsimile signatures on this Amendment shall be
binding upon the parties hereto.

 

2

 

7.             This Amendment shall be governed by
and construed in accordance with the laws of the State of Illinois.

 

IN WITNESS WHEREOF, the parties have signed this
Amendment on the date first above written.

 

 

	
   

  	
  HARLEY-DAVIDSON FINANCIAL

  
	
   

  	
  SERVICES, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Its

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DONNA JOSEPHINE FRETT ZARCONE 

  IRREVOCABLE TRUST DATED MARCH 30, 1999

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Phillip Charles Zarcone, not individually,

  	
   

  
	
   

  	
   

  	
  but as Trustee

  	
   

  
								

 

3Exhibit 10E

 

MCT

INTEROFFICE MEMO

 

 

	

  TO:

  	

  Tom Maun

  
	

   

  	

   

  
	

  FROM:

  	

  Roger Gower

  
	

   

  	

  Kathy

  Dimmick

  
	

   

  	

   

  
	

  DATE:

  	

  July 15,

  2002

  
	

   

  	

   

  
	

  SUBJECT:

  	

  Promotion

  

 

We are pleased to offer

you the position of Vice President of Finance and CFO for MCT.  In this role you will be reporting to Roger

Gower, President and CEO.

 

Your

base salary will be $ 150,000 per year, paid at a rate of $ 5,769.23

bi-weekly.  The effective date will be

July 15, 2002.  Your base salary will be

subject to the existing “salary reduction” affecting all MCT personnel with

annual salaries above $ 100k, but only to the level in place prior to your

promotion.  In addition to your base

salary, you will accrue vacation at a rate of 4 weeks per year.  MCT will provide for your use a laptop

computer, and a cell phone.  You will

also receive indemnity from liability through the MCT corporate by-laws.

 

You

will be granted options to purchase 65,000 shares of MCT stock.  The options have been approved by the board

using the July 15, 2002 per share market close price of $1.84. The options vest

at a rate of 25% per year, beginning on the first anniversary date from the

date of grant.

 

MCT

will also guarantee your salary and insurance benefits for nine months if you

are terminated, or incur a change in position or substantial diminution in

responsibilities as a result of any change in control. Your employment with MCT

will remain at-will, which means that it can be terminated by either you or MCT

at any time for any reason.  Nothing contained

in this letter or the MCT Employee Agreement alters your status as an at-will

employee. You will also be subject to the company’s standard policies and

procedures.

 

Because this change is a

transfer, you will be eligible for a performance review July 1, 2003.  Salary increases may take place July 1, 2003

and each July 1 thereafter.

 

We wish to extend to you our

sincere congratulations in receiving this offer.  We are confident you will find this new position to be both

challenging and rewarding.

 

 

	

  Roger Gower

  	

   

  	

  Kathy

  Dimmick

  
	

  President

  & CEO

  	

   

  	

  Human

  Resources Manager

  

 

Accepted:

 

	

   

  	

   

  	

   

  	

   

  
	

  Employee

  signature

  	

  DateEXHIBIT 10.1

 

Community Trust
Bancorp, Inc. Savings and Employee Stock Ownership Plan (Revised November 2002)

 

 

COMMUNITY TRUST BANCORP, INC.

 

SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN

 

SUMMARY PLAN DESCRIPTION

 

(Revised November 2002)

 

 

COMMUNITY TRUST BANCORP, INC.

SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN

SUMMARY PLAN DESCRIPTION

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
  I. 
  INTRODUCTION

  	
  1

  
	
   

  	
   

  	
   

  
	
  II. 
  WHO IS ELIGIBLE

  	
  1

  
	
   

  	
   

  	
   

  
	
   

  	
  Eligibility After a Break in Service

  	
  2

  
	
   

  	
   

  	
   

  
	
  III. 
  CONTRIBUTIONS

  	
  3

  
	
   

  	
   

  	
   

  
	
   

  	
  Salary Deferral Contributions

  	
  3

  
	
   

  	
   

  	
   

  
	
   

  	
  Employer Base Contributions

  	
  3

  
	
   

  	
   

  	
   

  
	
   

  	
  Employer Matching Contributions

  	
  4

  
	
   

  	
   

  	
   

  
	
   

  	
  Qualified Non-Elective Contributions

  	
  4

  
	
   

  	
   

  	
   

  
	
   

  	
  Employer Discretionary Contributions

  	
  4

  
	
   

  	
   

  	
   

  
	
   

  	
  Rollover Contributions

  	
  4

  
	
   

  	
   

  	
   

  
	
  IV. BENEFICIARIES

  	
  4

  
	
   

  	
   

  	
   

  
	
  V. 
  VESTING RIGHTS

  	
  5

  
	
   

  	
   

  	
   

  
	
   

  	
  Rehired Employees - Repayment to Plan and
  Vesting

  	
  5

  
	
   

  	
   

  	
   

  
	
  VI.  INVESTMENT OF PLAN
  ACCOUNTS

  	
  5

  
	
   

  	
   

  	
   

  
	
   

  	
  Dividends Paid on Company Stock

  	
  6

  
	
   

  	
   

  	
   

  
	
  VII.  DISTRIBUTION OF BENEFITS

  	
  7

  
	
   

  	
   

  	
   

  
	
   

  	
  Retirement or Termination from Employment

  	
  7

  
	
   

  	
   

  	
   

  
	
   

  	
  Disability

  	
  7

  
	
   

  	
   

  	
   

  
	
   

  	
  Death

  	
  7

  
	
   

  	
   

  	
   

  
	
   

  	
  In Service Withdrawals

  	
  8

  
	
   

  	
   

  	
   

  
	
   

  	
  Treatment of Distributions from the Plan

  	
  9

  
	
   

  	
   

  	
   

  
	
   

  	
  Qualified Domestic Relations Orders

  	
  9

  
	
   

  	
   

  	
   

  
	
  VIII. 
  TERMINATION AND AMENDMENT OF PLAN

  	
  9

  
	
   

  	
   

  	
   

  
	
  IX.  PLAN ADMINISTRATION

  	
  10

  
	
   

  	
   

  	
   

  
	
  X. 
  CLAIMS PROCEDURE

  	
  10

  
	
   

  	
   

  	
   

  
	
  XI.  INSURANCE

  	
  10

  
	
   

  	
   

  	
   

  
	
  XII.  YOUR RIGHTS UNDER ERISA

  	
  10

  
	
   

  	
   

  
	
  XIII. 
  SUMMARY FACT SHEET

  	
  13

  

 

 

COMMUNITY TRUST BANCORP, INC.

SAVINGS AND EMPLOYEE STOCK OWNERSHIP PLAN

SUMMARY PLAN DESCRIPTION

 

 

I.  INTRODUCTION

 

The following is a basic description of the Community Trust Bancorp,
Inc. Savings and Employee Stock Ownership Plan (the “Plan”).

 

This Plan was created for the exclusive use and benefit of present and
future employees of Community Trust Bancorp, Inc. (the “Company”) and
affiliates thereof (“Affiliates”) that adopt the Plan (collectively referred to
as the “Employer”).  The purpose of the
Plan is to provide tax-deferred savings and employer contributions to eligible
employees of the Employer and their beneficiaries.  The Plan is a qualified defined contribution plan with (1) a
qualified cash or deferred 401(k) plan feature that allows you to save a
portion of your salary on a pre-tax basis, (2) a profit sharing contribution
feature that “matches” a portion of your savings contributions, and (3) an
employee stock ownership plan (“ESOP”) feature under which the Company has
agreed to make annual employer base contributions, generally in the form of
Company stock.  Amounts contributed to
the Plan are invested and accumulated on a tax-deferred basis for eventual
distribution to participants or their beneficiaries.

 

The election by employees to become participants in the Plan does not
constitute a contract allowing any employee to continue to be employed by the
Company and does not affect the right of the Company to employ or to dismiss
employees or set their salary or wages.

 

This description is intended to provide the employee with basic
information on the most important parts of the Plan. Because it is a summary,
it does not contain all the details of the Plan.  The Plan document itself is a full statement of all the
provisions.  In the case of any conflict
between this description and the Plan, the Plan document controls and the
interpretation of the Plan by the Committee is final.

 

II.  WHO IS ELIGIBLE

 

All employees of the Employer are eligible to participate in the Plan
except:

 

1.                         any employee who is included
in a collective bargaining unit unless participation in the Plan was agreed to
in the process of good faith negotiations with the employee’s collective
bargaining representative;

 

 

2.                         an individual who is employed
by a business acquired on or after January 1, 1999 by the Employer except as
provided by a resolution adopted by the Committee following the acquisition;

 

3.                         an individual who is a leased
employee of the Employer;

 

4.                         an individual who is excluded
from participating in the Plan on the basis of payroll classification as not
being an employee, but who subsequently is reclassified by a

 

1

 

judicial, regulatory, or administrative action as a common-law employee
of the recipient organization; or

 

5.                         an employee who is a
nonresident alien and who receives no earned income from the Employer which
constitutes income from services within the United States.

 

An eligible employee may enter the Plan on the first calendar quarter (i.e.,
January 1, April 1, July 1, or October 1) occurring after the employee has
attained age twenty-one (21) and has completed a twelve consecutive month
period of employment in which he or she worked at least 1,000 hours of
service.  The first twelve consecutive
month period commences with the employee’s hire date.  If the employee does not complete 1,000 hours of service in the
first twelve months commencing with his or her hire date, the twelve month
period for determining eligibility becomes the calendar year beginning with the
calendar year that next begins after the employee’s hire date.  Generally, an hour of service is each hour
for which an employee is paid or entitled to payment for work for an
Employer.  Hours of service also can
include hours for which an employee is paid or entitled to payment for a period
during which no work is performed, such as during a paid vacation, illness or
disability.

 

Eligibility After a Break in Service

 

Any eligible employee who terminates employment and who is rehired
prior to incurring a “break in service” will be entitled to participate in the
Plan immediately upon rehire (provided the employee is in an eligible
classification of employees on such date). 
A “break in service” is a calendar year in which an employee does not
complete more than 500 hours of service.

 

An eligible employee who terminates employment and who is rehired after
incurring a “break in service” will be required to complete a twelve
consecutive month period of employment in which he or she works 1,000 hours of
service before reentering the Plan.  The
first twelve consecutive month period commences with the employee’s rehire
date.  If the employee does not complete
1,000 hours of service in the first twelve months commencing with his or her
rehire date, the twelve month period for determining eligibility becomes the
calendar year beginning with the calendar year that next begins after the
employee’s rehire date.  Upon completion
of such twelve consecutive month period, such eligible employee’s participation
in the Plan (except with regard to an entitlement to contributions under the
Plan) will be retroactive to his or her reemployment date.

 

An employee may be credited with up to five hundred one (501) Hours of
Service for any absence from work during which no duties are performed due to
the pregnancy of the employee, the birth of a child of the employee, the
placement of a child with the employee in connection with the adoption of such
child by the employee, or the caring for such child immediately following birth
or placement, but only to the extent required by law.  Such hours shall be credited in the twelve (12) month period in
which the absence begins if necessary to avoid a break in service, or if not
necessary, in the following twelve (12) month period.  An employee also may be credited with a limited number of hours
of service for any absence from work governed by the Family and Medical Leave
Act of 1993 or by veteran’s reemployment rights.

 

2

 

III.  CONTRIBUTIONS

 

Salary
Deferral Contributions

 

An eligible employee may elect to contribute on a pre-tax basis, in any
whole percentage points from one percent (1%) to not more than twelve percent
(12%) (effective January 1, 2003, 15%) of his or her compensation. The term
“compensation” includes an employee’s base pay, overtime, bonuses and sales
commissions but does not include expense advancements and reimbursements. The
Plan does not consider compensation in excess of the amount permitted by law
for any purposes under the Plan (e.g., $200,000 in 2002 but adjusted
each year for cost of living increases) or compensation earned during the
period an employee was not an active participant in the Plan.

 

The salary deferral contribution cannot exceed the maximum amount
allowed under the law and regulations (e.g., $11,000 in 2002 but
adjusted each year by statute or for cost of living increases).  In the event an employee selects a salary
deferral contribution and his or her percentage exceeds the limit prescribed by
law, the excess contributions will be returned to the employee.  If a change occurs in regular salary or
wages of an employee during the calendar year, the amount of the employee’s
contribution during such year will change accordingly.

 

An election to start contributing to the Plan must be made before the
first day of the calendar quarter in which the eligible employee is permitted
to enter the Plan in order to be effective for that quarter or prior to the
first day of any payroll period commencing thereafter, to take effect on the
first day of such payroll period.

 

A participant may elect to suspend his or her election to contribute to
the Plan at any time by filing an election at least thirty days prior to the
pay period for which such suspension is to be effective.  A participant may elect to modify the
percentage of compensation contributed to the Plan once during the end of each
calendar quarter by filing an election at least thirty days prior to the pay
period for which such modification is to be effective.

 

The Company reserves the right to limit or reduce salary deferral
contributions made on a participant’s behalf to the Plan (including returning
contributions to a participant), as necessary to enable the Plan to comply with
special IRS contribution limits.

 

Employer
Base Contributions

 

The Employer will contribute to the company stock account on behalf of
each participant an amount not less than three percent (3%) of each
participant’s compensation either in cash or in shares of Company Stock, as
determined by the Employer.  This
employer base contribution will be allocated not later than the last day of
each calendar quarter to each participant’s ESOP Stock Fund.

 

3

 

Employer
Matching Contributions

 

The Employer will contribute an employer matching contribution equal to
fifty percent (50%) of the first eight percent (8%) of each participant’s
salary deferral contributions, provided that the matching contributions shall
not exceed four percent (4%) of each participant’s compensation.  The employer matching contribution will be
allocated not later than the last day of each calendar quarter to each eligible
participant’s Matching Contribution Account.

 

Qualified Non-Elective Contributions

 

The Employer may in its own discretion make a Qualified Non-Elective
Contribution for the benefit of its employees. 
The Qualified Non-Elective Contribution shall be determined as of the
last day of each plan year and shall be allocated as of the end of the plan
year to the Salary Deferral Account of each participant who is not a highly
compensated employee (as determined under the Internal Revenue Code).

 

Employer Discretionary Contributions

 

The Employer may in its own discretion make a contribution to the Plan
and the amount shall be determined as of the last day of any plan year.  Only a participant who is employed as of the
last day of the plan year for which the employer discretionary contribution is
made will receive a contribution.  The
employer discretionary contribution, if any, shall be allocated to the
Discretionary Contribution Account based upon the same ratio that such participant’s
compensation for such plan year bears to the compensation of all eligible
participants for that plan year.

 

Rollover
Contributions

 

An employee may file a written petition with the Committee requesting
that he or she be permitted to roll into the Plan a distribution from a former
employer’s tax-qualified retirement plan (including such a distribution that
previously was rolled over to an Individual Retirement Account).  The employee must present evidence to prove
that the distribution satisfies the legal requirements for income tax deferral
as a rollover contribution.  Once
contributed to this Plan, amounts credited to an employee’s Rollover Account
will be subject to the distribution rules under the Plan, including the age 60
in-service distribution rules described in Section VI.

 

IV.
BENEFICIARIES

 

Each employee must designate a beneficiary or beneficiaries on the
Beneficiary Designation Form.  This Form
also is used to indicate any change of beneficiary desired by a participant and
must be kept up to date at all times. 
For this purpose, any employee who is married must designate his or her
spouse as beneficiary unless the spouse has consented to a different
beneficiary in a written, notarized statement. 
A married participant cannot change or revoke his beneficiary
designation without the consent of his or her spouse, unless the change or
revocation names his or her spouse as the beneficiary.

 

4

 

V.  VESTING RIGHTS

 

A participant is always fully vested (100%) in his or her salary
deferral contributions, rollover contributions and Qualified Non-Elective
Contributions, plus any earnings thereof. 
However, a participant earns a non-forfeitable interest in his or
her employer base contributions, employer matching contributions and employer
discretionary contributions, plus earnings thereof, upon being credited with three (3)
“years of vesting service.”  Prior to
January 1, 2002, a participant was required to be credited with five (5) “years
of vesting service” in order to have a non-forfeitable interest in his or her
employer matching contributions.  Prior
to September 1, 2002,  a participant was
required to be credited with five (5) “years of vesting service” in order to
have a non-forfeitable interest in his or her employer base contributions.  A “year of vesting service” is any plan year
in which an employee completes 1,000 or more hours of service.  Notwithstanding the foregoing, a participant
who attains age 65 while still employed with the Employer or whose employment
is terminated because of death or total and permanent disability shall become
fully vested (100%) upon attaining age 65, upon death or upon becoming
disabled.

 

The portion of a terminating employee’s accounts that is not fully
vested (100%) will be forfeited at the earlier of the time he or she has
incurred five (5) consecutive breaks in service or the time when he or she
receives a distribution from the Plan of the vested portion of his or her
accounts.  Any forfeited amounts shall
be allocated at least once during each plan year as of a valuation date chosen
by the Committee among active participants based on their compensation and the
source from which the forfeitures were derived.  These reallocated amounts are referred to as forfeiture
allocations.

 

Rehired Employees - Repayment to Plan and
Vesting

 

An employee who had the unvested portion of his account forfeited and
who subsequently is rehired by an Employer before incurring five (5)
consecutive one-year breaks in service, may have the forfeited amount
restored to his or her account by repaying to the Plan the amount received upon
termination.  Repayment must be made
within five (5) years of being rehired. 
Upon such repayment, the employee’s account will be credited with the
amount originally forfeited and years of vesting service earned as of the
termination from service.

 

Any years of vesting service completed after an employee incurs five
consecutive breaks in service will not be counted as years of vesting service
with respect to contributions made prior to the breaks in service.  Any years of vesting service completed
before an employee incurs five consecutive breaks in service will not be
counted as years of vesting service with respect to contributions made after
his or her breaks in service.

 

VI.  INVESTMENT OF PLAN ACCOUNTS

 

Each participant is entitled to direct the manner in which all amounts
credited to his or her accounts (other than amounts credited as a result of the
employer base contributions) are invested. 
The Committee, in its sole discretion, shall designate from time to time
which investment funds are available to a participant.  Employer base contributions shall be
allocated to the ESOP Stock Fund and shall be invested by the Company primarily
in Company stock.  The

 

5

 

option to select investment funds is given to the participant at the
time of joining the Plan.  Investment
elections may be changed by utilizing the voice response unit.

 

The ESOP Stock Fund consists primarily of Community Trust Bancorp common
stock purchased with employer base contributions.  A “qualified participant” may elect within 90 days after the
close of each plan year in the “qualified election period” to direct the Plan
as to the investment of up to 25% (50% in the last year of the “qualified
election period”) of the participant’s stock fund.  A “qualified participant” is any participant who has attained age
55 and who has completed at least ten years of participation in the Plan.  The “qualified election period” is the six
(6) consecutive plan years beginning with the first plan year in which the
participant first becomes a qualified participant.

 

The qualified participant may direct that portion of his or her stock
fund be invested in any of the investment funds available under the Plan.  The qualified participant’s direction shall
be provided to the Committee in writing, shall be effective no later than 180
days after the close of the plan year to which it applies and shall specify
which, if any, of the investment funds he or she wishes to select.

 

The Plan funds are invested in trust accounts held completely separate
from the Employer’s general accounts. 
It is the duty of the Trustee to invest the participant’s Plan accounts
in accordance with the participant’s 
investment election.  The Trustee
offers a variety of investment options from which to choose.  By giving the participant control over the
investment of his or her account, the Plan is intended to qualify under Section
404(c) of the Employee Retirement Income Security Act and Title 20 of the Code
of Federal Regulations Section 2550.404(c)-1.  This means that Plan fiduciaries, including the Plan Sponsor and
Trustee, may be relieved of liability for any losses which are the direct
result of the participant’s investment instructions.

 

Dividends
Paid on Company Stock

 

Dividends paid on Company stock held in the Participant’s ESOP Stock
Fund under the Plan will automatically be reinvested in Company stock.  Nevertheless, each Participant who is fully
vested (100%) in their employer base contribution account has the option to
either (1) keep the dividends deposited in the ESOP Stock Fund and reinvest the
dividends in Company Stock; or (2) receive payment, in cash, of the dividend
paid on the Company stock.  Participants
who do not make an affirmative election will be deemed to have chosen to retain
the dividends in their account and the dividends will be automatically
reinvested in Company stock.  By
electing to receive payment of these dividends, the participant will be
reducing his or her overall tax-favored retirement savings.  Participants who are not fully vested (100%)
in their employer base contribution account at the time the annual elections
are provided by the Company will not be permitted to make an election, and the
dividends paid to their account automatically will be reinvested in Company
stock.  At the Company’s sole discretion, cash dividends paid on Company stock held in
the ESOP Stock Fund that a participant has elected to receive may be either
paid in cash (1) directly to the participant or (2) contributed to the Plan
and, not later than 90 days after the end of the Plan Year in which the
dividends are so contributed in cash, paid by the Plan to the Participant.  Any elections to receive cash shall be made
at the time and in the manner determined in the sole discretion of the
Committee.

 

6

 

Distributions of dividends are subject to federal and state income tax
(although no early withdrawal penalty), and cannot be rolled over into an IRA
or other tax-qualified plan. 
Participants will be issued tax forms (Form 1099R) reporting the
distribution to the participant and the Internal Revenue Service.  It is the participant’s responsibility to
pay all federal and state income tax related to this distribution.

 

VII.  DISTRIBUTION OF BENEFITS

 

THE COMPANY STRONGLY RECOMMENDS THAT YOU CONSULT WITH A TAX ADVISOR
PRIOR TO RECEIVING A DISTRIBUTION FROM THE PLAN.

 

Retirement or Termination from Employment

 

Distribution of funds as a result of retirement or termination from
employment may be made either in (i) a lump sum payment (including Company
Stock if elected) or (ii) payments in cash or Company Stock made in equal
annual installments over any period of time not exceeding the joint life
expectancy of the participant and his or her designated beneficiary.  A participant may elect to receive a
distribution in the form of Company Stock only to the extent of the balance in
his or her Company Stock Fund as of the time of distribution.

 

If the amount in the participant’s accounts is $5,000 or less (or such
minimum allowed by regulations), the distribution may be made in a single lump
sum without the participant’s consent. 
If the amount in the participant’s account exceeds $5,000, the participant
must elect or consent to a distribution. 
If such participant does not elect or consent to a distribution, his or
her account shall remain in the trust until the earlier of the first day of the
month coinciding with or next following the participant’s 65th
birthday or the date as of which the participant elects to receive a
distribution.  If a participant is not
actively employed with an Employer, distributions from the Plan must commence
no later than April 1 of the year after the year in which the participant
attains age 701⁄2.

 

Disability

 

Upon being determined to be totally and permanently disabled, a
participant shall be entitled to a lump sum payment equal to the value in his
or her accounts.  The distribution will
be made as soon as possible after the participant is determined to be disabled
or later if elected by the participant; provided, such payment will not be made
later than the last day of the plan year in which the participant attains age
65.

 

Death

 

Upon the death of a participant prior to retirement or termination of
employment, the participant’s accounts will be distributed to the named
beneficiary in one of the following alternatives:

 

1.                         One lump sum payment.  (The benefit automatically will be
distributed in a lump sum payment if the amount is equal or less than the
amount specified by the regulations; currently, this amount is $5,000.)

 

7

 

2.                         At the election of a spousal
beneficiary, cash payments in equal installments for a maximum of five (5)
years after the date of the participant’s death.

 

In
Service Withdrawals

 

At the written request of a participant who has attained age sixty
(60), the Committee will direct the Trustee to withdraw funds from his or her
vested Plan accounts.  For this purpose,
any distribution taken from the Company Stock Fund can be made in the form of
Company stock.

 

At the written request of a participant, withdrawals from his salary
deferral contributions account will be made for “hardship” reasons only (prior
to a participant attaining age sixty (60)). 
Hardship is defined as:

 

1.                         Medical expenses incurred by
the participant or the participant’s spouse or dependent(s);

 

2.                         Purchase of a participant’s
primary residence (but not including mortgage payment);

 

3.                         Payment of tuition for the
next semester or quarter of post-secondary education for the participant or the
participant’s spouse or dependent(s); or

 

4.                         The need to prevent the
eviction from, or foreclosure on the mortgage of, the participant’s principal
residence.

 

An application for withdrawal from the salary deferral contributions
account will be made as provided for by the Committee.  Participants seeking a hardship withdrawal
must certify that the funds are not reasonably available from other sources,
such as:

 

1.                         through reimbursement or
compensation from insurance or otherwise;

 

2.                         by reasonable liquidation of
assets;

 

3.                         by stopping contributions
under this Plan; or

 

4.                         from distributions or
non-taxable loans from other plans or by borrowing from commercial sources.

 

Withdrawals shall be approved by the Committee on a uniform and
nondiscriminatory basis.  These
withdrawals, together with any other withdrawal as stated elsewhere may not
exceed the amount required to meet the emergency need.  Hardship withdrawals may be subject to an
excise tax penalty as well as ordinary income tax if received before the
employee reaches age 60.

 

A participant who receives a hardship distribution may not make salary
deferral contributions to the Plan for the six (6) month period beginning on
the date of receipt of the hardship distribution.  Furthermore, a participant will not be entitled to receive
another hardship distribution for twelve months after receiving a hardship
distribution.

 

8

 

Treatment of Distributions from the Plan

 

Whenever a distribution is made from the Plan, it will normally be
subject to income taxes.  The
participant may, however, reduce, or defer entirely, the tax due on the
distribution through use of one of the following methods:

 

1.                         Elect that a direct transfer
(referred to as a “direct rollover”) of all or a portion of the distribution be
made to an Individual Retirement Account (“IRA”) or another qualified employer
plan willing to accept the transfer.  A
direct transfer will result in no tax being due until it is withdrawn from the
IRA or other qualified employer plan. 
Under certain circumstances, all or a portion of the amount being
distributed may not qualify for the direct transfer.  If you elect to actually receive the distribution rather than
request a direct transfer, then, in most cases, 20% of the distribution amount
will be withheld for federal income tax purposes.

 

2.                         Elect a rollover of all or a
portion of the distribution to an IRA or another qualified plan that will
accept it (that is not a direct transfer). 
This will result in no tax being due until it is withdrawn from the IRA
or other qualified employer plan.  The
rollover of the distribution, however, MUST be made within strict time frames
(generally, within 60 days of receiving the distribution).  Under certain circumstances, all or a
portion of the distribution may not qualify for this rollover treatment.  In addition, most distributions will be
subject to a mandatory federal income tax withholding rate of 20%.  This will reduce the amount you actually
receive.  For this reason, if you wish
to rollover all or a portion of your distribution amount, the direct transfer
option described above would be a better choice.

 

3.                         Elect a favorable income tax
treatment that may be available to you.

 

BEFORE A DISTRIBUTION IS PAID FROM THE PLAN, THE PLAN ADMINISTRATOR
WILL DELIVER A MORE DETAILED EXPLANATION OF THESE OPTIONS.  HOWEVER, THE RULES WHICH DETERMINE WHETHER
YOU QUALIFY FOR FAVORABLE TAX TREATMENT ARE VERY COMPLEX.  CONSULT WITH TAX QUALIFIED COUNSEL BEFORE
MAKING A CHOICE.

 

Qualified Domestic Relations Orders

 

In the event that a Qualified Domestic Relations Order is received by
the Committee, benefits will be payable in accordance with such order.  The participant’s account may be
distributable in part to his or her spouse, former spouse, child or other
dependent.  The Committee has
established procedures to determine whether a Domestic Relations Order is
qualified, and to make distributions under such an Order.

 

VIII. 
TERMINATION AND AMENDMENT OF PLAN

 

The Company has the right at any time to amend or to modify the Plan,
except to the extent prohibited by law. 
The Company also has the right to fully or partially terminate the Plan
at any time.  If the Plan is fully or
partially terminated, each affected participant immediately will

 

9

 

become fully vested (100%) in his or her accounts without regard to the
number of years of vesting service he or she has earned.

 

If the Plan is terminated, the Company will direct the Trustee to
continue to maintain separate accounts for each participant and accumulate
earnings, profits and losses thereon. 
The Committee will distribute the balance to each participant’s account
under the terms of the Plan.

 

IX.  PLAN ADMINISTRATION

 

The Committee is responsible for Plan administration.  As such, the Committee is required by ERISA
to supply participants with this description and other information and to file
various reports and documents with government agencies.  In its role of administering the Plan, the
Committee has discretionary power to interpret and construe the provisions of
the Plan, and may make rulings, prescribe procedures, gather needed
information, receive and review valuations of the Plan, employ or appoint
individuals to assist in any administrative function and generally do all other
things which need to be handled in administering the Plan.

 

X.  CLAIMS PROCEDURE

 

If a participant or the beneficiary of a participant wishes to file a
claim for benefits under the Plan, the Committee will provide the necessary
forms.  If any such claim is denied, the
person making the claim, called the “claimant,” will receive from the Committee
within 90 days of its receipt of the claim a written statement as to why the
claim was denied, specific reference to the section or sections of the Plan
which are relevant to the claim, a list of additional material of information
(if any) that is necessary for the claimant to perfect the claim (with an
explanation of why the additional information is needed), an explanation of the
Plan’s claim procedure, and an explanation that the claimant may request a
review of his claim denial by the Committee by filing a written request with
the Plan.  The Committee may take, in
certain circumstances, up to an additional 90 days (for a total of 180 days)
from the receipt of the claim to make an initial determination.  The Committee will notify the participant or
beneficiary of the need for the additional 90 days with an explanation of the
circumstances warranting the extension of time to process the claim.  Generally, a claimant may request a review
of any claim denial by sending a written request for review to the Committee
within 60 days of the date he or she is notified of the denial.  The Committee will respond to all requests
for review within 60 days of receiving the request for review unless special
circumstances require an extension, in which case the claimant will be so
notified.  Any decision by the Committee
shall be final and binding on all persons claiming an interest in such
decision, except as otherwise provided by law.

 

XI.  INSURANCE

 

The benefits provided by the Plan are not insured because the Federal
government does not make insurance available for an individual account plan
such as this Plan.

 

XII.  YOUR RIGHTS UNDER ERISA

 

As a participant in this Plan, you are entitled to certain rights and
protections under the Employee Retirement Income Security Act of 1974
(“ERISA”).  ERISA provides that all Plan
participants shall be entitled to:

 

10

 

1.                         Examine, without charge, at
the Plan Administrator’s office, all Plan documents and copies of all documents
filed by the Plan with the U.S. Department of Labor, such as detailed annual
reports and Plan descriptions.

 

2.                         Obtain copies of all Plan
documents and other Plan information to which you are entitled upon written
request to the Plan Administrator.  The
Plan Administrator may make a reasonable charge for the copies.

 

3.                         Receive a summary of the
Plan’s annual financial report.  The
Plan Administrator is required by law to furnish each participant with a copy
of this summary annual report.

 

4.                         Obtain a statement telling you
the balance of your account, including Employer contributions and your own
contributions and any gain or loss in your account, at the end of the most
recent Plan year.  You will also be told
whether, or to what extent you have a nonforfeitable right to your account balance
and, if applicable, how many more years you will have to work to have a fully
nonforfeitable right in your account balance.

 

In addition to creating rights for Plan participants, ERISA imposes
duties upon the people who are responsible for the operation of the Plan.  The people who operate your Plan, called
“fiduciaries,” have a duty to do so prudently and in the interest of you and
other plan participants and beneficiaries.

 

No one, including your employer or any other person, may fire you or
otherwise discriminate against you in any way to prevent you from obtaining a
benefit to which you are entitled or from exercising your rights under ERISA.

 

If your claim for a benefit is denied in whole or in part, you must
receive a written explanation of the reason for the denial.  You have the right to have the Committee
review and reconsider your claim.

 

Under ERISA, there are steps you can take to enforce the above
rights.  For instance, if you request
materials to which you are entitled from the Plan Administrator and do not
receive them within thirty (30) days, you may file suit in a Federal
court.  In such a case, the court may
require the Plan Administrator to provide the materials and pay you up to $110
a day until you receive the materials, unless the materials were not sent
because of reasons beyond the control of the Plan Administrator.  If you have a claim for benefits which is
denied or ignored, in whole or in part, you may file suit in a state or federal
court.

 

A court will decide who should pay court costs and legal fees.  If you are successful, the court may order
the person you sued to pay these costs and fees.  If you lose, the court may order you to pay these costs and fees,
for example, if it finds your claim frivolous.

 

If you have any questions about your Plan, you should contact the Plan
Administrator.  If you have any
questions about this statement or about your rights under ERISA, you should
contact the nearest Area Office of the U.S. Labor Management Services
Administration, Department of Labor.

 

11

 

If further explanation is required, or if, for any reason, any claims
arise against the Plan, please contact your Office Manager or Department
Manager.  The Office or Department
Manager will promptly forward all inquiries to the Administrative Committee for
their handling.

 

12

 

XIII.  SUMMARY FACT SHEET

 

Name
of Plan:

 

Community Trust Bancorp, Inc. Savings and Employee Stock Ownership Plan

 

Plan
Administrator:

 

Community Trust Bancorp, Inc.

P.O. Box 2947

Pikeville, Kentucky 41502-2947

 

Employer
Identification Number:

 

61-0979818

 

Plan
Number:

 

006

 

Plan
Year:

 

January 1st through December 31st

 

Type
of Plan:

 

Profit sharing plan with cash or deferred feature and ESOP

 

Type
of Administration:

 

The Plan is a trusteed plan and will be administered by the Committee
appointed by the Board of Directors of Community Trust Bancorp, Inc.

 

Agent
to Receive Service of Legal Papers:

 

Community Trust Bancorp, Inc.

P.O. Box 2947

Pikeville, Kentucky 41502-2947

 

The Trustee may also receive service of legal papers.

 

Trustee:

 

Trust Company of Kentucky, N.A.

100 East Vine Street

Lexington, Kentucky 40588-0199

 

13

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