Document:

ex10-84.htm

     

    
      EXHIBIT
10.84

       

       

      COMMUNITY
CAPITAL CORPORATION EMPLOYEE STOCK OWNERSHIP PLAN

      (WITH
CODE SECTION 401(K) PROVISIONS)

      
        
        

      

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      TABLE OF
CONTENTS

       

      ARTICLE
I

      DEFINITIONS

       

      ARTICLE
II

      ADMINISTRATION

       

      
        
          
            
              
                	
                        2.1

                      	
                        POWERS
      AND RESPONSIBILITIES OF THE EMPLOYER

                      	
                        14

                      
	
                        2.2

                      	
                        DESIGNATION
      OF ADMINISTRATIVE
      AUTHORITY                                                                                                                    

                      	
                        15

                      
	
                        2.3

                      	
                        ALLOCATION
      AND DELEGATION OF RESPONSIBILITIES

                      	
                        15

                      
	
                        2.4

                      	
                        POWERS
      AND DUTIES OF THE
      ADMINISTRATOR                                                                                                                    

                      	
                        15

                      
	
                        2.5

                      	
                        RECORDS
      AND
      REPORTS                                                                                                                    

                      	
                        17

                      
	
                        2.6-

                      	
                        APPOINTMENT
      OF
      ADVISERS                                                                                                                    

                      	
                        17

                      
	
                        2.7

                      	
                        PAYMENT
      OF
      EXPENSES                                                                                                                    

                      	
                        17

                      
	
                        2.8

                      	
                        CLAIMS
      PROCEDURE                                                                                                                    

                      	
                        17

                      
	
                        2.9

                      	
                        CLAIMS
      REVIEW
      PROCEDURE                                                                                                                    

                      	
                        18

                      
	 	 	 
	 
      	
                        ARTICLE
      III

                      	 
      
	 
      	
                        ELIGIBILITY

                      	 
      
	
                        3.1

                      	
                        CONDITIONS
      OF
      ELIGIBILITY                                                                                                                    

                      	
                        18

                      
	
                        3.2

                      	
                        EFFECTIVE
      DATE OF
      PARTICIPATION                                                                                                                    

                      	
                        18

                      
	
                        3.3

                      	
                        DETERMINATION
      OF
      ELIGIBILITY                                                                                                                    

                      	
                        18

                      
	
                        3.4

                      	
                        TERMINATION
      OF
      ELIGIBILITY                                                                                                                    

                      	
                        19

                      
	
                        3.5

                      	
                        OMISSION
      OF ELIGIBLE
      EMPLOYEE                                                                                                                    

                      	
                        19

                      
	
                        3.6

                      	
                        INCLUSION
      OF INELIGIBLE
      EMPLOYEE                                                                                                                    

                      	
                        19

                      
	
                        3.7

                      	
                        REHIRED
      EMPLOYEES AND BREAKS IN
      SERVICE                                                                                                                    

                      	
                        19

                      
	
                        3.8

                      	
                        ELECTION
      NOT TO
      PARTICIPATE                                                                                                                    

                      	
                        20

                      
	 	 	 
	 
      	
                        ARTICLE
      IV

                      	 
      
	 
      	
                        CONTRIBUTION
      AND ALLOCATION

                      	 
      
	
                        4.1

                      	
                        FORMULA
      FOR DETERMINING EMPLOYER CONTRIBUTION

                      	
                        21

                      
	
                        4.2

                      	
                        PARTICIPANT'S
      SALARY REDUCTION
      ELECTION                                                                                                                    

                      	
                        21

                      
	
                        4.3

                      	
                        TIME
      OF PAYMENT OF EMPLOYER CONTRIBUTION

                      	
                        25

                      
	
                        4.4

                      	
                        ALLOCATION
      OF CONTRIBUTION, FORFEITURES AND EARNINGS

                      	
                        25

                      
	
                        4.5

                      	
                        ACTUAL
      DEFERRAL PERCENTAGE
      TESTS                                                                                                                    

                      	
                        30

                      
	
                        4.6

                      	
                        ADJUSTMENT
      TO ACTUAL DEFERRAL PERCENTAGE TESTS

                      	
                        32

                      

              

            

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

      
        
          
            
              
                
                  	
                          4.7

                        	
                          ACTUAL
      CONTRIBUTION PERCENTAGE
      TESTS                                                                                                                  

                        	
                          35

                        
	
                          4.8

                        	
                          ADJUSTMENT
      TO ACTUAL CONTRIBUTION PERCENTAGE TESTS

                        	
                          37

                        
	
                          4.9

                        	
                          MAXIMUM
      ANNUAL
      ADDITIONS                                                                                                                  

                        	
                          40

                        
	
                          4.10

                        	
                          ADJUSTMENT
      FOR EXCESSIVE ANNUAL ADDITIONS

                        	
                          42

                        
	
                          4.11

                        	
                          ROLLOVERS
      AND PLAN-TO-PLAN TRANSFERS FROM QUALIFIED

                        	
                           
      

                        
	 
      	
                          PLANS                                                                                                                  

                        	
                          43

                        
	
                          4.12

                        	
                          DIRECTED
      INVESTMENT
      ACCOUNT                                                                                                                  

                        	
                          45

                        
	
                          4.13

                        	
                          QUALIFIED
      MILITARY
      SERVICE                                                                                                                  

                        	
                          47

                        
	 	 	 
	 
      	
                          ARTICLE
      V

                        	 
      
	 
      	
                          FUNDING
      AND INVESTMENT POLICY

                        	 
      
	
                          5.1

                        	
                          INVESTMENT
      POLICY                                                                                                                 

                        	
                          47

                        
	
                          5.2

                        	
                          TRANSACTIONS
      INVOLVING COMPANY
      STOCK                                                                                                                  

                        	
                          47

                        
	 	 	 
	 
      	
                          ARTICLE
      VI

                        	 
      
	 
      	
                          VALUATIONS

                        	 
      
	
                          6.1

                        	
                          VALUATION
      OF THE TRUST
      FUND                                                                                                                  

                        	
                          48

                        
	
                          6.2

                        	
                          METHOD
      OF
      VALUATION                                                                                                                  

                        	
                          49

                        
	 	 	 
	 
      	
                          ARTICLE
      VII

                        	 
      
	 
      	
                          DETERMINATION
      AND DISTRIBUTION OF BENEFITS

                        	 
      
	
                          7.1

                        	
                          DETERMINATION
      OF BENEFITS UPON RETIREMENT

                        	
                          49

                        
	
                          7.2

                        	
                          DETERMINATION
      OF BENEFITS UPON
      DEATH                                                                                                                  

                        	
                          49

                        
	
                          7.3

                        	
                          DETERMINATION
      OF BENEFITS IN EVENT OF DISABILITY

                        	
                          51

                        
	
                          7.4

                        	
                          DETERMINATION
      OF BENEFITS UPON TERMINATION

                        	
                          51

                        
	
                          7.5

                        	
                          DISTRIBUTION
      OF
      BENEFITS                                                                                                                  

                        	
                          53

                        
	
                          7.6

                        	
                          HOW
      PLAN BENEFIT WILL BE
      DISTRIBUTED                                                                                                                  

                        	
                          57

                        
	
                          7.7

                        	
                          DISTRIBUTION
      FOR MINOR OR INCOMPETENT BENEFICIARY

                        	
                          58

                        
	
                          7.8

                        	
                          LOCATION
      OF PARTICIPANT OR BENEFICIARY UNKNOWN

                        	
                          58

                        
	
                          7.9

                        	
                          RIGHT
      OF FIRST
      REFUSALS                                                                                                                  

                        	
                          59

                        
	
                          7.10

                        	
                          STOCK
      CERTIFICATE
      LEGEND                                                                                                                  

                        	
                          59

                        
	
                          7.11

                        	
                          PUT
      OPTION                                                                                                                  

                        	
                          60

                        
	
                          7.12

                        	
                          PRE-RETIREMENT
      DISTRIBUTION                                                                                                                  

                        	
                          61

                        
	
                          7.12

                        	
                          ADVANCE
      DISTRIBUTION FOR
      HARDSHIP                                                                                                                  

                        	
                          61

                        
	
                          7.13

                        	
                          QUALIFIED
      DOMESTIC RELATIONS ORDER DISTRIBUTION

                        	
                          63

                        

                

              

            

          

        

      

      
        
          
            
              
                
                  
                    	
                            7.14

                          	
                            DIRECT
      ROLLOVER                                                                                                                

                          	
                            63

                          

                     

                     

                     

                    
                      
                        
                        

                      

                      
                        
                        

                        
                          

                        

                      

                      
                        
                        

                      

                    

                     

                    	 	 	 
	 
      	
                            ARTICLE
      VIII

                          	 
      
	 
      	
                            AMENDMENT,
      TERMINATION, MERGERS AND LOANS

                          	 
      
	
                            8.1

                          	
                            AMENDMENT                                                                                                                

                          	
                            64

                          
	
                            8.2

                          	
                            TERMINATION                                                                                                                

                          	
                            65

                          
	
                            8.3

                          	
                            MERGER,
      CONSOLIDATION OR TRANSFER OF ASSETS

                          	
                            65

                          
	
                            8.4

                          	
                            LOANS
      TO
      PARTICIPANTS                                                                                                                

                          	
                            66

                          
	 	 	 
	 
      	
                            ARTICLE
      IX

                          	 
      
	 
      	
                            TOP
      HEAVY

                          	 
      
	
                            9.1

                          	
                            TOP
      HEAVY PLAN
      REQUIREMENTS                                                                                                                  

                          	
                            67

                          
	
                            9.2

                          	
                            DETERMINATION
      OF TOP HEAVY
      STATUS                                                                                                                  

                          	
                            67

                          
	 	 	 
	
                             
      

                          	
                            ARTICLE
      X

                          	 
      
	
                             
      

                          	
                            MISCELLANEOUS

                          	 
      
	
                            10.1

                          	
                            PARTICIPANT'S
      RIGHTS                                                                                                                  

                          	
                            70

                          
	
                            10.2

                          	
                            ALIENATION                                                                                                                  

                          	
                            71

                          
	
                            10.3

                          	
                            CONSTRUCTION
      OF
      PLAN                                                                                                                  

                          	
                            72

                          
	
                            10.4

                          	
                            GENDER
      AND
      NUMBER                                                                                                                  

                          	
                            72

                          
	
                            10.5

                          	
                            LEGAL
      ACTION                                                                                                                  

                          	
                            72

                          
	
                            10.6

                          	
                            PROHIBITION
      AGAINST DIVERSION OF
      FUNDS                                                                                                                  

                          	
                            72

                          
	
                            10.7

                          	
                            EMPLOYER'S
      AND TRUSTEE'S PROTECTIVE CLAUSE

                          	
                            73

                          
	
                            10.8

                          	
                            INSURER'S
      PROTECTIVE
      CLAUSE                                                                                                                  

                          	
                            73

                          
	
                            10.9

                          	
                            RECEIPT
      AND RELEASE FOR
      PAYMENTS                                                                                                                  

                          	
                            73

                          
	
                            10.10

                          	
                            ACTION
      BY THE
      EMPLOYER                                                                                                                  

                          	
                            73

                          
	
                            10.11

                          	
                            NAMED
      FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY

                          	
                            73

                          
	
                            10.12

                          	
                            HEADINGS                                                                                                                  

                          	
                            74

                          
	
                            10.13

                          	
                            APPROVAL
      BY INTERNAL REVENUE
      SERVICE                                                                                                                  

                          	
                            74

                          
	
                            10.14

                          	
                            UNIFORMITY                                                                                                                  

                          	
                            74

                          
	
                            10.15

                          	
                            SECURITIES
      AND EXCHANGE COMMISSION APPROVAL

                          	
                            74

                          
	
                            10.16

                          	
                            VOTING
      COMPANY
      STOCK                                                                                                                  

                          	
                            75

                          
	 	 	 
	 
      	
                            ARTICLE
      XI

                          	 
      
	 
      	
                            PARTICIPATING
      EMPLOYERS

                          	 
      
	
                            11.1

                          	
                            ADOPTION
      BY OTHER
      EMPLOYERS                                                                                                                  

                          	
                            75

                          

                  

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                  
                    
                      
                      

                    

                    
                      
                      

                      
                        

                      

                    

                    
                      
                      

                    

                  

                   

                   

                

              

            

          

        

      

      
        
          
            	
                    11.2

                  	
                    REQUIREMENTS
      OF PARTICIPATING
      EMPLOYERS                                                                                                                            

                  	
                    75

                  
	
                    11.3

                  	
                    DESIGNATION
      OF
      AGENT                                                                                                                            

                  	
                    76

                  
	
                    11.4

                  	
                    EMPLOYEE
      TRANSFERS                                                                                                                            

                  	
                    76

                  
	
                    11.5

                  	
                    PARTICIPATING
      EMPLOYER CONTRIBUTION AND FORFEITURES

                  	
                    76

                  
	
                    11.6

                  	
                    AMENDMENT                                                                                                                           

                  	
                    76

                  
	
                    11.7

                  	
                    DISCONTINUANCE
      OF
      PARTICIPATION                                                                                                                           

                  	
                    77

                  
	
                    11.8

                  	
                    ADMINISTRATOR'S
      AUTHORITY                                                                                                                           

                  	
                    77

                  

          

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      COMMUNITY
CAPITAL CORPORATION EMPLOYEE STOCK OWNERSHIP PLAN

      (WITH
CODE SECTION 401(K) PROVISIONS)

       

      THIS
PLAN, hereby adopted this 20th day of
December 2110, by CapitalBank (herein referred to as the
"Employer").

       

      WITNESSETH:

       

      WHEREAS,
the Employer heretofore established an Employee Stock Ownership Plan effective
January 1, 1991, (hereinafter called the "Effective Date") known as Community
Capital Corporation Employee Stock Ownership Plan (with Code Section 401(k)
Provisions) (herein referred to as the "Plan") in recognition of the
contribution made to its successful operation by its employees and for the
exclusive benefit of its eligible employees; and

       

      WHEREAS,
under the terms of the Plan, the Employer has the ability to amend the Plan,
provided the Trustee joins in such amendment if the provisions of the Plan
affecting the Trustee are amended;

       

      WHEREAS,
contributions to the Plan will be made by the Employer and such contributions
made to the trust will be invested primarily in the capital stock of the
Employer;

       

      NOW,
THEREFORE, effective December 31, 2001, except as otherwise provided, the
Employer in accordance with the provisions of the Plan pertaining to amendments
thereof, hereby amends the Plan in its entirety and restates the Plan to provide
as follows:

       

      ARTICLE
I

      DEFINITIONS

       

      1.1 "Act"
means the Employee Retirement Income Security Act of 1974, as it may be
amended
from time to time.

       

      1.2
"Administrator" means the Employer unless another person or entity has been
designated
by the Employer pursuant to Section 2.2 to administer the Plan on behalf of the
Employer.

       

      1.3
"Affiliated Employer" means any corporation which is a member of a controlled
group of
corporations (as defined in Code Section 414(b)) which includes the Employer;
any trade or business (whether or not incorporated) which is under common
control (as defined in Code Section 414(c)) with the Employer; any organization
(whether or not incorporated) which is a member of an affiliated service group
(as defined in Code Section 414(m)) which includes the Employer; and any other
entity required to be aggregated with the Employer pursuant to Regulations under
Code Section 414(o).

       

      1.4
"Aggregate Account" means, with respect to each Participant, the value of all
accounts
maintained on behalf of a Participant, whether attributable to Employer or
Employee contributions, subject to the provisions of Section 9.2.

       

      1.5
"Anniversary Date" means the last day of the Plan Year.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      1.6
"Bank" means CapitalBank.

       

      1.7
"Beneficiary" means the person (or entity) to whom the share of a deceased
Participant's
total account is payable, subject to the restrictions of Sections 7.2 and
7.5.

       

      1.8
"Buyout" means a transaction or series of related transactions by which the Bank
is sold,
either through the sale of a Controlling Interest in the Bank's voting stock or
through the sale of substantially all of the Bank's assets, to a party not
having a Controlling Interest in the Bank's voting stock on the date of
execution of this Plan.

       

      1.9
"Code" means the Internal Revenue Code of 1986, as amended or replaced from
time to
time.

       

      1.10
"Company Stock" means common stock issued by the Employer (or by a corporation
which is a member of the controlled group of corporations of which the Employer
is a member) which is readily tradeable on an established securities
market..  If there is no common stock which meets the foregoing
requirement, the term "Company Stock" means common stock issued by the Employer
(or by a corporation which is a member of the same controlled group) having a
combination of voting power and dividend rights equal to or in excess of: (A)
that class of common stock of the Employer (or of any other such corporation)
having the greatest voting power, and (B) that class of common stock of the
Employer (or of any other such corporation) having the greatest dividend rights.
Noncallable preferred stock shall be deemed to be "Company Stock" if such stock
is convertible at any time into stock which constitutes "Company Stock"
hereunder and if such conversion is at a conversion price which (as of the date
of the acquisition by the Trust) is reasonable. For purposes of the preceding
sentence, pursuant to Regulations, preferred stock shall be treated as
noncallable if after the call there will be a reasonable opportunity for a
conversion which meets the requirements of the preceding sentence.

       

      1.11
"Company Stock Account" means the account of a Participant which is credited
with the shares of Company Stock purchased and paid for by the Trust Fund or
contributed to the Trust Fund.

       

      A
separate accounting shall be maintained with respect to that portion of the
Company Stock Account attributable to Elective Contributions and Non-Elective
Contributions.

       

      1.12
"Compensation" with respect to any Participant means such Participant's wages as
defined in Code Section 3401(a) and all other payments of compensation by the
Employer (in the course of the Employer's trade or business) for a Plan Year for
which the Employer is required to furnish the Participant a written statement
under Code Sections 6041(d), 6051(a)(3) and 6052.

       

      Compensation
must be determined without regard to any rules under Code Section 3401(a) 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 Code Section 3401(a)(2)).

       

      For
purposes of this Section, the determination of Compensation shall be made
by:

       

      (a)
including amounts which are contributed by the Employer pursuant to a
salary reduction agreement and which are not includible in the gross income
of the
Participant under Code Sections 125, 132(f)(4) for Plan Years beginning after
December 31, 2000, 402(e)(3), 402(h)(1)(B), 403(b) or 457(b), and Employee
contributions described in Code Section 414(h)(2) that are treated as Employer
contributions.

       

      For a
Participant's initial year of participation, Compensation shall be recognized
for the entire Plan Year.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      Compensation
in excess of $150,000 (or such other amount provided in the Code) shall be
disregarded for all purposes other than for purposes of salary deferral
elections pursuant to Section 4.2. Such amount shall be adjusted for increases
in the cost of living in accordance with Code Section 401(a)(17)(B), except that
the dollar increase in effect on January 1 of any calendar year shall be
effective for the Plan Year beginning with or within such calendar year. For any
short Plan Year the Compensation limit shall be an amount equal to the
Compensation limit for the calendar year in which the Plan Year begins
multiplied by the ratio obtained by dividing the number of full months in the
short Plan Year by twelve (12).

       

      For Plan
Years beginning after December 31, 1996, for purposes of determining
Compensation, the family member aggregation rules of Code Section 401(a)(17) and
Code Section 414(q)(6) (as in effect prior to the Small Business Job Protection
Act of 1996) are eliminated.

       

      For
purposes of this Section, if the Plan is a plan described in Code Section 413(c)
or 414(f) (a plan maintained by more than one Employer), the limitation applies
separately with respect
to the Compensation of any Participant from each Employer maintaining the
Plan.

       

      1.13
"Contract" or "Policy" means any life insurance policy, retirement income policy
or annuity policy (group or individual) issued pursuant to the terms of the
Plan. In the event of any conflict between the terms of this Plan and the terms
of any contract purchased hereunder, the Plan provisions shall
control.

       

      1.14
"Controlling Interest" means the ownership, either directly or indirectly, of
more than 20% of the Bank's voting stock.

       

      1.15
"Deferred Compensation" with respect to any Participant means the amount of the
Participant's total Compensation which has been contributed to the Plan in
accordance with the Participant's deferral election pursuant to Section 4.2
excluding any such amounts distributed as excess "annual additions" pursuant to
Section 4.10.

       

      1.16
"Early Retirement Date" means any Anniversary Date (prior to the Normal
Retirement Date) coinciding with or following the date on which a Participant or
Former Participant attains age 55, and has completed at least 10 Years of
Service with the Employer (Early Retirement Age). A Participant shall become
fully Vested upon satisfying this requirement if still employed at Early
Retirement Age.

       

      A Former
Participant who separates from service after satisfying the service requirement
for Early Retirement and who thereafter reaches the age requirement contained
herein shall be entitled to receive benefits under this Plan.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      1.17
"Elective Contribution" means the Employer contributions to the Plan of Deferred
Compensation excluding any such amounts distributed as excess "annual additions"
pursuant to Section 4.10. In addition, any Employer Qualified Non-Elective
Contribution made pursuant to Section 4.1(c) and Section 4.6(b) which is used to
satisfy the "Actual Deferral Percentage" tests shall be considered an Elective
Contribution for purposes of the Plan. Any contributions deemed to be Elective
Contributions (whether or not used to satisfy the "Actual Deferral Percentage"
tests or the "Actual Contribution Percentage" tests) shall be subject to the
requirements of Sections 4.2(b) and 4.2(c) and shall further be required to
satisfy the nondiscrimination requirements of Regulation 1.401(k)-1(b)(5) and
Regulation 1.401(m)-I (b)(5), the provisions of which are specifically
incorporated herein by reference.

       

      1.18
"Eligible Employee" means any Employee.

       

      Employees
classified by the Employer as independent contractors who are subsequently
determined by the Internal Revenue Service to be Employees shall not be Eligible
Employees.

       

      1.19
"Employee" means any person who is employed by the Employer or Affiliated
Employer, and excludes any person who is employed as an independent contractor.
Employee shall include Leased Employees within the meaning of Code Sections
414(n)(2) and 414(o)(2) unless such Leased Employees are covered by a plan
described in Code Section 414(n)(5) and such Leased Employees do not constitute
more than 20% of the recipient's non-highly compensated
work force.

       

      1.20
"Employer" means CapitalBank and any successor which shall maintain this Plan;
and any predecessor which has maintained this Plan. The Employer is a
corporation with principal offices in the State of South Carolina. In addition,
where appropriate, the term Employer shall include any Participating Employer
(as defined in Section 11.1) which shall adopt this Plan.

       

      1.21
"Excess Aggregate Contributions" means, with respect to any Plan Year, the
excess of the aggregate amount of the Employer matching contributions made
pursuant to Section 4.1(b) and any qualified non-elective contributions or
elective deferrals taken into account pursuant to Section 4.7(c) on behalf of
Highly Compensated Participants for such Plan Year, over the maximum amount of
such contributions permitted under the limitations of Section 4.7(a) (determined
by hypothetically reducing contributions made on behalf of Highly Compensated
Participants in order of the actual contribution ratios beginning with the
highest of such ratios). Such determination shall be made after first taking
into account corrections of any Excess Deferred Compensation pursuant to Section
4.2 and taking into account any adjustments of any Excess Contributions pursuant
to Section 4.6.

       

      1.22
"Excess Contributions" means, with respect to a Plan Year, the excess of
Elective Contributions used to satisfy the "Actual Deferral Percentage" tests
made on behalf of Highly Compensated Participants for the Plan Year over the
maximum amount of such contributions permitted under Section 4.5(a) (determined
by hypothetically reducing contributions made on behalf of Highly Compensated
Participants in order of the actual deferral ratios beginning with the highest
of such ratios). Excess Contributions shall be treated as an "annual addition"
pursuant to Section 4.9(b).

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      1.23
"Excess Deferred Compensation" means, with respect to any taxable year of a
Participant, the excess of the aggregate amount of such Participant's Deferred
Compensation and the elective deferrals pursuant to Section 4.2(f) actually made
on behalf of such Participant for such taxable year, over the dollar limitation
provided for in Code Section 402(g), which is incorporated herein by reference.
Excess Deferred Compensation shall be treated as an "annual addition" pursuant
to Section 4.9(b) when contributed to the Plan unless distributed to the
affected Participant not later than the first April 15th following the close of
the Participant's taxable year. Additionally, for purposes of Sections 9.2 and
4.4(h), Excess Deferred Compensation shall continue to be treated as Employer
contributions even if distributed pursuant to Section 4.2(f). However, Excess
Deferred Compensation of Non-Highly Compensated Participants is not taken into
account for purposes of Section 4.5(a) to the extent such Excess Deferred
Compensation occurs pursuant to Section 4.2(d).

       

      1.24
"ESOP" means an employee stock ownership plan that meets the requirements of
Code Section 4975(e)(7) and Regulation 54.4975-11.

       

      1:25
"Fiduciary" means any person who (a) exercises any discretionary authority or
discretionary control respecting management of the Plan or exercises any
authority or control respecting management or disposition of its assets, (b)
renders investment advice for a fee or other compensation, direct or indirect,
with respect to any monies or other property of the Plan or has any authority or
responsibility to do so, or (c) has any discretionary authority or discretionary
responsibility in the administration of the Plan.

       

      1.26
"Fiscal Year" means the Employer's accounting year of 12 months commencing on
January 1 of each year and ending the following December 31.

       

      1.27
"Forfeiture" means that portion of a Participant's Account that is not Vested,
and occurs on the earlier of:

       

      (a)   the
distribution of the entire Vested portion of the Participant's Account of a
Former Participant who has severed employment with the Employer, or

       

      (b)   the
last day of the Plan Year in which a Former Participant who has severed
employment with the Employer incurs five (5) consecutive 1-Year Breaks in
Service.

       

      Regardless
of the preceding provisions, if a Former Participant is eligible to share in the
allocation of Employer contributions or Forfeitures in the year in which the
Forfeiture would otherwise occur, then the Forfeiture will not occur until the
end of the first Plan Year for which the Former Participant is not eligible to
share in the allocation of Employer contributions or Forfeitures. Furthermore,
the term "Forfeiture" shall also include amounts deemed to be Forfeitures
pursuant to any other provision of this Plan.

       

      1.28
"Former Participant" means a person who has been a Participant, but who has
ceased to be a Participant for any reason.

       

      1.29 "415
Compensation" with respect to any Participant means such Participant's wages as
defined in Code Section 3401(a) and all other payments of compensation by the
Employer
(in the course of the Employer's trade or business) for a Plan Year for which
the Employer is required to furnish the Participant a written statement under
Code Sections 6041(d), 6051(a)(3) and 6052. "415 Compensation" must be
determined without regard to any rules under Code Section 3401(a) 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 Code
Section 3401(a)(2)).

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      For
"limitation years" beginning after December 31, 1997, for purposes of this
Section, the determination of "415 Compensation" shall include any elective
deferral (as defined in Code Section 401(g)(3)), and any amount which is
contributed or deferred by the Employer at the election of the Participant and
which is not includible in the gross income of the Participant by reason of Code
Sections 125, 132(0(4) for "limitation years" beginning after December 31, 2000
and 457.

       

      1.30
"414(s) Compensation" means any definition of compensation that satisfies the
nondiscrimination requirements of Code Section 414(s) and the Regulations
thereunder. The period for determining 414(s) Compensation must be either the
Plan Year or the calendar year ending with or within the Plan Year. An Employer
may further limit the period taken into account
to that part of the Plan Year or calendar year in which an Employee was a
Participant in the component of the Plan being tested. The period used to
determine 414(s) Compensation must be applied uniformly to all Participants for
the Plan Year.

       

      For Plan
Years beginning after December 31, 1996, for purposes of this Section, the
family member aggregation rules of Code Section 414(q)(6) (as in effect prior to
the Small Business Job Protection Act of 1996) are eliminated.

       

      1.31
"Highly Compensated Employee" means, for Plan Years beginning after December 31,
1996, an Employee described in Code Section 414(q) and the Regulations
thereunder, and generally means any Employee who:

       

      (c)          was
a "five percent owner" as defined in Section 1.36(c) at any time
during the "determination year" or the "look-back year"; or

       

      (d)          for
the "look-back year" had "415 Compensation" from the

       

      Employer
in excess of $80,000 and were in the Top Paid Group of Employees for the Plan
Year. The $80,000 amount is adjusted at the same time and in the same manner as
under Code Section 415(d), except that the base period is the calendar quarter
ending September 30, 1996.

       

      The
"determination year" means the Plan Year for which testing is being performed,
and the "look back year" means the immediately preceding twelve (12) month
period.

       

      A highly
compensated former Employee is based on the rules applicable to determining
Highly Compensated Employee status as in effect for the "determination year," in
accordance with Regulation 1.414(q)-1T, A-4 and IRS Notice 97-45 (or any
superseding guidance).

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      In
determining whether an Employee is a Highly Compensated Employee for a Plan Year
beginning in 1997, the amendments to Code Section 414(q) stated above are
treated as having been in effect for years beginning in 1996.

       

      For
purposes of this Section, for Plan Years beginning prior to January 1, 1998, the
determination of "415 Compensation" shall be made by including amounts that
would otherwise be excluded from a Participant's gross income by reason of the
application of Code Sections 125, 402(e)(3), 402(h)(1)(B) and, in the case of
Employer contributions made pursuant to a salary reduction agreement, Code
Section 403(b).

       

      In
determining who is a Highly Compensated Employee, Employees who are non-resident
aliens and who received no earned income (within the meaning of
Code-Section
911(d)(2)) from the Employer constituting United States source income within the
meaning of Code Section 861(a)(3) shall not be treated as Employees.
Additionally, all Affiliated Employers shall be taken into account as a single
employer and Leased Employees within the meaning of Code Sections 414(n)(2) and
414(o)(2) shall be considered Employees unless such Leased Employees are covered
by a plan described in Code Section 414(n)(5) and are not covered in any
qualified plan maintained by the Employer. The exclusion of Leased Employees for
this purpose shall be applied on a uniform and consistent basis for all of the
Employer's retirement plans. Highly Compensated Former Employees shall be
treated as Highly Compensated Employees without regard to whether they performed
services during the "determination year."

       

      1.32
"Highly Compensated Participant" means any Highly Compensated Employee who is
eligible to participate in the component of the Plan being tested.

       

      1.33
"Hour of Service" means, for purposes of eligibility for participation, vesting
and benefit accrual, (1) each hour for which an Employee is directly or
indirectly compensated or entitled to compensation by the Employer for the
performance of duties (these hours will be credited to the Employee for the
computation period in which the duties are performed); (2) each hour for which
an Employee is directly or indirectly compensated or entitled to compensation by
the Employer (irrespective of whether the employment relationship has
terminated) for reasons other than performance of duties (such as vacation,
holidays, sickness, jury duty, disability, lay-off, military duty or leave of
absence) during the applicable computation period (these hours will be
calculated and credited pursuant to Department of Labor regulation 2530.200b-2
which is incorporated herein by reference); (3) each hour for which back pay is
awarded or agreed to by the Employer without regard to mitigation of damages
(these hours will be credited to the Employee for 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). The same Hours of
Service shall not be credited both under (1) or (2), as the case may be, and
under (3).

       

      Notwithstanding
(2) above, (i) no more than 501 Hours of Service are required to be credited to
an Employee on account of any single continuous period during which the Employee
performs no duties (whether or not such period occurs in a single computation
period); (ii) an hour for which an Employee is directly or indirectly paid, or
entitled to payment, on account of a period during which no duties are performed
is not required to be credited to the Employee if such payment is made or due
under a plan maintained solely for the purpose of complying with applicable
worker's compensation, or unemployment compensation or disability insurance
laws; and (iii) Hours of Service are not required to be credited for a payment
which solely
reimburses an Employee for medical or medically related expenses incurred by the
Employee.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      For
purposes of (2) above, a payment shall be deemed to be made by or due from the
Employer regardless of whether such payment is made by or due from the Employer
directly, or indirectly through, among others, a trust fund, or insurer, to
which the Employer contributes or pays premiums and regardless of whether
contributions made or due to the trust fund, insurer, or other entity are for
the benefit of particular Employees or are on behalf of a group of Employees in
the aggregate.

       

      For
purposes of this Section, Hours of Service will be credited for employment with
other Affiliated Employers. The provisions of Department of Labor regulations
2530.200b-2(b) and (c) are incorporated herein by reference.

       

      1.34
"Income" means the income or losses allocable to Excess Deferred Compensation,
Excess Contributions or Excess Aggregate Contributions which amount shall be
allocated in.the same manner as income or losses are allocated pursuant to
Section-4.4(d).

       

      1.35
"Investment Manager" means an entity that (a) has the power to manage, acquire,
or dispose of Plan assets and (b) acknowledges fiduciary responsibility to the
Plan in writing. Such entity must be a person, firm, or corporation registered
as an investment adviser under the Investment Advisers Act of 1940, a bank, or
an insurance company.

       

      1.36 "Key
Employee" means an Employee as defined in Code Section 416(i) and the
Regulations thereunder. Generally, any Employee or former Employee (as well as
each of the Employee's or former Employee's Beneficiaries) is considered a Key
Employee if the Employee's or former Employee's, at any time during the Plan
Year that contains the "Determination Date" or any of the preceding four (4)
Plan Years, has been included in one of the following categories:

       

      (a) an
officer of the Employer (as that term is defined within the meaning of the
Regulations under Code Section 416) having annual "415 Compensation" greater
than 50 percent of the amount in effect under Code Section 415(b)(1)(A) for any
such Plan Year.

       

      (b) one
of the ten employees having annual "415 Compensation" from the Employer for a
Plan Year greater than the dollar limitation in effect under Code Section
415(c)(1)(A) for the calendar year in which such Plan Year ends and owning (or
considered as owning within the meaning of Code Section 318) both more than
one-half percent interest and the largest interests in the
Employer.

       

      (c) a
"five percent owner" of the Employer. "Five percent owner" means any person who
owns (or is considered as owning within the meaning of Code Section 318) more
than five percent (5%) of the outstanding stock of the Employer or stock
possessing more than five percent (5%) of the total combined voting power of all
stock of the Employer or, in the case of an unincorporated business, any person
who owns more than five percent (5%) of the capital or profits interest in the
Employer. In determining percentage ownership hereunder, employers
that would otherwise be aggregated under Code Sections 414(b), (c), (m) and (o)
shall be treated as separate employers.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      (d) a
"one percent owner" of the Employer having an annual "415 Compensation"
from the Employer of more than $150,000. "One percent owner" means any person
who owns (or is considered as owning within the meaning of Code Section 318)
more than one percent (1%) of the outstanding stock of the Employer or stock
possessing more than one percent (1%) of the total combined voting power of all
stock of the Employer or, in the case of an unincorporated business, any person
who owns more than one percent (1%) of the capital or profits interest in the
Employer. In determining percentage ownership hereunder, employers that would
otherwise be aggregated under Code Sections 414(b), (c), (m) and (o) shall be
treated as separate employers. However, in determining whether an individual has
"415 Compensation" of more than $150,000, "415 Compensation" from each employer
required to be aggregated under Code Sections 414(b), (c), (m) and (o) shall be
taken into account.

       

      For
purposes of this Section, the determination of "415 Compensation" shall be made
by including amounts which are contributed by the Employer pursuant to a salary
reduction agreement and which are not includible in the gross income of the
Participant under Code Sections 125, 132(f)(4) for Plan Years beginning after
December 31, 2000, 402(e)(3), 402(h)(1)(B), 403(b) or 457(b), and Employee
contributions described in Code Section 414(h)(2) that are treated as Employer
contributions.

       

      1.37
"Late Retirement Date" means the Anniversary Date coinciding with or next
following a Participant's actual Retirement Date after having reached Normal
Retirement Date.

       

      1.38
"Leased Employee" means, for Plan Years beginning after December 31, 1996, any
person (other than an Employee of the recipient Employer) who pursuant to an
agreement between the recipient Employer and any other person or entity
("leasing organization") has performed services for the recipient (or for the
recipient and related persons determined in accordance with Code Section
414(n)(6)) on a substantially full time basis for a period of at least one year,
and such services are performed under primary direction or control by the
recipient Employer. Contributions or benefits provided a Leased Employee by the
leasing organization which are attributable to services performed for the
recipient Employer shall be treated as provided by the recipient Employer.
Furthermore, Compensation for a Leased Employee shall only include Compensation
from the leasing organization that is attributable to services performed for the
recipient Employer. A Leased Employee shall not be considered an Employee of the
recipient Employer:

       

      (a) if
such employee is covered by a money purchase pension plan providing:

       

      (1) a
nonintegrated employer contribution rate of at least 10% of compensation,
as defined in Code Section 415(c)(3), but for Plan Years beginning prior to
January 1, 1998, including amounts which are contributed by the Employer
pursuant to a salary reduction agreement and which are not includible in the
gross income of the Participant under Code Sections 125, 402(e)(3),
402(h)(1)(B), 403(b) or 457(b), and Employee contributions
described in Code Section 414(h)(2) that are treated as Employer contributions,
and for Plan Years beginning prior to January 1, 2001, excluding amounts that
are not includible in gross income under Code Section 132(f)(4);

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      (2) immediate
participation;

       

      (3) full
and immediate vesting; and

       

      (b) if
Leased Employees do not constitute more than 20% of the recipient
Employer's nonhighly compensated work force.

       

      1.39
"Merger" means a transaction or series of transactions wherein the Bank is
combined
with another business entity, and after which the persons or entities who had
owned, either directly or indirectly, a Controlling Interest in Bank's voting
stock on the date of execution of this Plan own less than a Controlling Interest
in the voting stock of the combined entity.

       

      1.40
"Non-Elective Contribution" means the Employer contributions to the Plan
excluding, however, contributions made pursuant to the Participant's deferral
election provided for in Section 4.2 and any Qualified Non-Elective Contribution
used in the "Actual Deferral Percentage" tests.

       

      1.41
"Non-Highly Compensated Participant" means, for Plan Years beginning after
December 31, 1996, any Participant who is not a Highly Compensated Employee.
However, for purposes of Section 4.5 and Section 4.7, if the prior year testing
method is used, a Non-Highly Compensated Participant shall be determined using
the definition of Highly Compensated Employee in effect for the preceding Plan
Year.

       

      1.42
"Non-Key Employee" means any. Employee or former Employee (and such Employee's
or former Employee's Beneficiaries) who is not, and has never been, a Key
Employee.

       

      1.43
"Normal Retirement Age" means the Participant's 65th birthday. A Participant
shall become fully Vested in the Participant's Account upon attaining Normal
Retirement Age.

       

      1.44
"Normal Retirement Date" means the Anniversary Date coinciding with or next
following the Participant's Normal Retirement Age.

       

      1.45
"1-Year Break in Service" means, for purposes of eligibility for participation
and vesting, the applicable computation period during which an Employee has not
completed more than 500 Hours of Service with the Employer. Further, solely for
the purpose of determining whether a Participant has incurred a 1-Year Break in
Service, Hours of Service shall be recognized for "authorized leaves of absence"
and "maternity and paternity leaves of absence." Years of Service and 1-Year
Breaks in Service shall be measured on the same computation period.

       

      "Authorized
leave of absence" means an unpaid, temporary cessation from active employment
with the Employer pursuant to an established nondiscriminatory policy, whether
occasioned by illness, military service, or any other reason.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      A
"maternity or paternity leave of absence" means an absence from work for any
period by reason of the Employee's pregnancy, birth of the Employee's child,
placement of a child with the Employee in connection with the adoption of such
child, or any absence for the purpose of caring for such child for a period
immediately following such birth or placement. For this purpose, Hours of
Service shall be credited for the computation period in which the absence from
work begins, only if credit therefore is necessary to prevent the Employee from
incurring a 1-Year Break in Service, or, in any other case, in the immediately
following computation period. The Hours of Service credited for a "maternity or
paternity leave of absence" shall be those which would normally have been
credited but for such absence, or, in any case in which the Administrator is
unable to determine such hours normally credited, eight (8) Hours of Service per
day. The total Hours of Service required to be credited for a "maternity or
paternity leave of absence" shall not exceed the number of Hours of Service
needed to prevent the Employee from incurring a 1-Year Break in
Service.

       

      1.46
"Other Investments Account" means the account of a Participant which is credited
with such Participant's
share of the net gain (or loss) of the Plan, Forfeitures and Employer
contributions in other than Company Stock and which is debited with payments
made to pay for Company Stock.

       

      A
separate accounting shall be maintained with respect to that portion of the
Other Investments Account attributable to Elective Contributions and
Non-Elective Contributions.

       

      1.47
"Participant" means any Eligible Employee who participates in the Plan and has
not for any reason become ineligible to participate further in the
Plan.

       

      1.48
"Participant Direction Procedures" means such instructions, guidelines or
policies, the terms of which are incorporated herein, as shall be established
pursuant to Section 4.12 and observed by the Administrator and applied to
Participants who have Participant Directed Accounts.

       

      1.49
"Participant's Account" means the account established and maintained by the
Administrator for each Participant with respect to such Participant's total
interest in the Plan and Trust resulting from the Employer Non-Elective
Contributions.

       

      A
separate accounting shall be maintained with respect to that portion of the
Participant's Account attributable to Employer matching contributions made
pursuant to Section 4.1(b), Employer discretionary contributions made pursuant
to Section 4.1(d) and any Employer Qualified Non-Elective
Contributions.

       

      1.50
"Participant's Combined Account" means the total aggregate amount of each
Participant's Elective Account and Participant's Account.

       

      1.51
"Participant's Directed Account" means that portion of a Participant's interest
in the Plan with respect to which the Participant has directed the investment in
accordance with the Participant Direction Procedure.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      1.52
"Participant's Elective Account" means the account established and maintained by
the Administrator for each Participant with respect to the Participant's total
interest in the Plan and Trust resulting from the Employer Elective
Contributions used to satisfy the "Actual Deferral Percentage" tests. A separate
accounting shall be maintained with respect to that portion of the Participant's
Elective Account attributable to such Elective Contributions pursuant to Section
4.2 and any Employer Qualified Non-Elective Contributions.

       

      1.53
"Participant's Transfer/Rollover Account" means the account established and
maintained by the Administrator for each Participant with respect to the
Participant's total interest in the Plan resulting from amounts transferred to
this Plan from a direct plan-to-plan transfer and/or with respect to such
Participant's interest in the Plan resulting from amounts transferred from
another qualified plan or "conduit" Individual Retirement Account in accordance
with Section 4.11.

       

      A
separate accounting shall be maintained with respect to that portion of the
Participant's Transfer/Rollover Account attributable to transfers (within the
meaning of Code Section 414(1)) and "rollovers."

       

      1.54
"Plan" means this instrument, including all amendments thereto.

       

      1.55
"Plan Year" means the Plan's accounting year of twelve (12) months commencing on
January 1 of each year and ending the following December 31.

       

      1.56
"Qualified Non-Elective Contribution" means any Employer contributions made
pursuant to Section 4.1(c) and Section 4.6(b) and Section 4.8(f). Such
contributions shall be considered an Elective Contribution for the purposes of
the Plan and may be used to satisfy the "Actual Deferral Percentage" tests or
the "Actual Contribution Percentage" tests.

       

      1.57
"Regulation" means the Income Tax Regulations as promulgated by the Secretary of
the Treasury or a delegate of the Secretary of the Treasury, and as amended from
time to time.

       

      1.58
"Retired Participant" means a person who has been a Participant, but who has
become entitled to retirement benefits under the Plan.

       

      1.59
"Retirement Date" means the date as of which a Participant retires for reasons
other than Total and Permanent Disability, whether such retirement occurs on a
Participant's Normal Retirement Date, Early or Late Retirement Date (see Section
7.1).

       

      1.60
"Substantial Change of Ownership" means a transaction or series of transactions
in which a Controlling Interest in the Bank is acquired by or for a person or
business entity, either of which did not own, either directly or indirectly, a
Controlling Interest in the Bank on the date that this Plan was executed. The
above shall not apply to stock purchased by the Plan.

       

      1.61
"Terminated Participant" means a person who has been a Participant, but whose
employment has been terminated other than by death, Total and Permanent
Disability or retirement.

       

      1.62 "Top
Heavy Plan" means a plan described in Section 9.2(a).

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      1.63 "Top
Heavy Plan Year" means a Plan Year during which the Plan is a Top Heavy
Plan.

       

      1.64
"Top-Paid Group" means the top 20 percent of Employees who performed services
for the Employer during the applicable year, ranked according to the amount of
"415 Compensation" received from the Employer during such year. All Affiliated
Employers shall be taken into account as a single employer, and Leased Employees
within the meaning of Code Sections 414(n)(2) and 414(o)(2) shall be considered
Employees unless such Leased Employees are covered by a plan described in Code
Section 414(n)(5) and are not covered in any qualified plan maintained by the
Employer. Employees who are non-resident aliens and who received no earned
income (within the meaning of Code Section 911(d)(2)) from the Employer
constituting United States source income within the meaning of Code Section
861(a)(3) shall not be treated as Employees. Furthermore, for the purpose of
determining the number of active Employees in any year, the following additional
Employees shall also be excluded, however, such Employees shall still be
considered for the purpose of identifying the particular Employees in the
Top-Paid Group:

       

      (a)           Employees
with less than six (6) months of service;

       

      (b)           Employees
who normally work less than 17 1/2 hours per week;

       

      (c)           Employees
who normally work less than six (6) months during a year; and

       

      (d)           Employees
who have not yet attained age twenty-one (21).

       

      In
addition, if 90 percent or more of the Employees of the Employer are covered
under agreements the Secretary of Labor finds to be collective bargaining
agreements between Employee representatives and the Employer, and the Plan
covers only Employees who are not covered under such agreements, then Employees
covered by such agreements shall be excluded from both the total number of
active Employees as well as from the identification of particular Employees in
the Top-Paid Group.

       

      The
foregoing exclusions set forth in this Section shall be applied on a uniform and
consistent basis for all purposes for which the Code Section 414(q) definition
is applicable.

       

      1.65
"Total and Permanent Disability" means a physical or mental condition of a
Participant resulting from bodily injury, disease, or mental disorder which
renders such Participant incapable of continuing any gainful occupation and
which condition constitutes total disability under the federal Social Security
Acts.

       

      1.66
"Trustee" means the person or entity named as trustee herein or in any separate
trust forming a part of this Plan, and any successors.

       

      1.67
"Trust Fund" means the assets of the Plan and Trust as the same shall exist from
time to time.

       

      1.68
"Valuation Date" means the Anniversary Date and may include any other date or
dates deemed necessary or appropriate by the Administrator for the valuation of
the Participant's accounts
during the Plan Year, which may include any day that the Trustee, any transfer
agent appointed by the Trustee or the Employer or any stock exchange used by
such agent, are open for business.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      1.69
"Vested" means the nonforfeitable portion of any account maintained on behalf of
a Participant.

       

      1.70
"Year of Service" means the computation period of twelve (12) consecutive
months, herein set forth, during which an Employee has at least 1000 Hours of
Service.

       

      For
vesting purposes, the computation periods shall be measured from the date on
which the Employee first performs an Hour of Service and anniversaries thereof,
including periods prior to the Effective Date of the Plan. 

       

      The
computation period shall be the Plan Year if not otherwise set forth
herein.

       

      Notwithstanding
the foregoing, for any short Plan Year, the determination of whether an Employee
has completed a Year of Service shall be made in accordance with Department of
Labor regulation 2530.203-2(c). However, in determining whether an Employee has
completed a Year of Service for benefit accrual purposes in the short Plan Year,
the number of the Hours of Service required shall be proportionately reduced
based on the number of full months in the short Plan Year.

       

      Years of
Service with any Affiliated Employer shall be recognized.

       

      ARTICLE
II

      ADMINISTRATION

       

      
        	
                2.1

              	
                POWERS
      AND RESPONSIBILITIES OF THE
EMPLOYER

              

      

       

      (a)            In
addition to the general powers and responsibilities otherwise provided for in
this Plan, the Employer shall be empowered to appoint and remove the Trustee and
the Administrator from time to time as it deems necessary for the proper
administration of the Plan to ensure that the Plan is being operated for the
exclusive benefit of the Participants and their Beneficiaries in accordance with
the terms of the Plan, the Code, and the Act. The Employer may appoint counsel,
specialists, advisers, agents (including any nonfiduciary agent) and other
persons as the Employer deems necessary or desirable in connection with the
exercise of its fiduciary duties under this Plan. The Employer may compensate
such agents or advisers from the assets of the Plan as fiduciary expenses (but
not including any business (settlor) expenses of the Employer), to the extent
not paid by the Employer.

       

      (b)            The
Employer may, by written agreement or designation, appoint at its option an
Investment Manager (qualified under the Investment Company Act of 1940 as
amended), investment adviser, or other agent to provide direction to the Trustee
with respect to any or all of the Plan assets. Such appointment shall be given
by the Employer in writing in a form acceptable to the Trustee and shall
specifically
identify the Plan assets with respect to which the Investment Manager or other
agent shall have authority to direct the investment.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      (c)           The
Employer shall establish a "funding policy and method," i.e., it shall determine
whether the Plan has a short run need for liquidity (e.g., to pay benefits) or
whether liquidity is a long run goal and investment growth (and stability of
same) is a more current need, or shall appoint a qualified person to do so. The
Employer or its delegate shall communicate such needs and goals to the Trustee,
who shall coordinate such Plan needs with its investment policy. The
communication of such a "funding policy and method" shall not, however,
constitute a directive to the Trustee as to the investment of the Trust Funds.
Such "funding policy and method" shall be consistent with the objectives of this
Plan and with the requirements of Title I of the Act.

       

      (d)           The
Employer shall periodically review the performance of any Fiduciary or other
person to whom duties have been delegated or allocated by it under the
provisions of this Plan or pursuant to procedures established hereunder. This
requirement may be satisfied by formal periodic review by the Employer or by a
qualified person specifically designated by the Employer, through day-to-day
conduct and evaluation, or through other appropriate ways.

       

      
        	
                2.2

              	
                DESIGNATION
      OF ADMINISTRATIVE AUTHORITY

              

      

       

      The
Employer shall be the Administrator. The Employer may appoint any person,
including, but not limited to, the Employees of the Employer, to perform the
duties of the Administrator. Any person so appointed shall signify acceptance by
filing written acceptance with the Employer. Upon the resignation or removal of
any individual performing the duties of the Administrator, the Employer may
designate a successor.

       

      
        	
                2.3

              	
                ALLOCATION
      AND DELEGATION OF RESPONSIBILITIES

              

      

       

      If more
than one person is appointed as Administrator, the responsibilities of each
Administrator may be specified by the Employer and accepted in writing by each
Administrator. In the event that no such delegation is made by the Employer, the
Administrators may allocate the responsibilities among themselves, in which
event the Administrators shall notify the Employer and the Trustee in writing of
such action and specify the responsibilities of each Administrator. The Trustee
thereafter shall accept and rely upon any documents executed by the appropriate
Administrator until such time as the Employer or the Administrators file with
the Trustee a written revocation of such designation.

       

      
        	
                2.4

              	
                POWERS
      AND DUTIES OF THE ADMINISTRATOR

              

      

       

      The
primary responsibility of the Administrator is to administer the Plan for the
exclusive benefit of the Participants and their Beneficiaries, subject to the
specific terms of the Plan. The Administrator shall administer the Plan in
accordance with its terms and shall have the power and discretion to construe
the terms of the Plan and to determine all questions arising in connection with
the administration, interpretation, and application of the Plan. Any such
determination by the Administrator shall be conclusive and binding upon all
persons. The Administrator may establish procedures, correct any defect, supply
any information, or reconcile any
inconsistency in such manner and to such extent as shall be deemed necessary or
advisable to carry out the purpose of the Plan; provided, however, that any
procedure, discretionary act, interpretation or construction shall be done in a
nondiscriminatory manner based upon uniform principles consistently applied and
shall be consistent with the intent that the Plan shall continue to be deemed a
qualified plan under the terms of Code Section 401(a), and shall comply with the
terms of the Act and all regulations issued pursuant thereto. The Administrator
shall have all powers necessary or appropriate to accomplish the Administrator's
duties under the Plan.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      The
Administrator shall be charged with the duties of the general administration of
the Plan as set forth under the terms of the Plan, including, but not limited
to, the following:

       

      (a) the
discretion to determine all questions relating to the eligibility of
Employees
to participate or remain a Participant hereunder and to receive benefits under
the Plan;

       

      (b) to
compute, certify, and direct the Trustee with respect to the amount
and the kind of benefits to
which any Participant shall be entitled hereunder;

       

      (c) to
authorize and direct the Trustee with respect to all nondiscretionary
or otherwise directed disbursements from the Trust;

       

      (d) to
maintain all necessary records for the administration of the Plan;

       

      (e) to
interpret the provisions of the Plan and to make and publish such rules for
regulation of the Plan as are consistent with the terms hereof;

       

      (f) to
determine the size and type of any Contract to be purchased from any
insurer, and to designate the insurer from which such Contract shall be
purchased;

       

      (g) to
compute and certify to the Employer and to the Trustee from time to time the
sums of money necessary or desirable to be contributed to the Plan;

       

      (h) to
consult with the Employer and the Trustee regarding the short and long-term
liquidity needs of the Plan in order that the Trustee can exercise any
investment discretion in a manner designed to accomplish specific
objectives;

       

      (i) to
prepare and implement a procedure to notify Eligible Employees that they
may elect to have a portion of their Compensation deferred or paid to them in
cash;

       

      (j) to
establish and communicate to Participants a procedure, which includes
at least three (3) investment options pursuant to Regulations, for allowing each
Participant to direct the Trustee as to the investment of such Participant's
Company Stock Account pursuant to Section 4.12;

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      (k) to
determine the validity of, and take appropriate action with respect
to, any qualified domestic relations order received by it; and

       

      (l) to
assist any Participant regarding the Participant's rights, benefits,
or
elections available under the Plan.

       

      
        	
                2.5

              	
                RECORDS
      AND REPORTS

              

      

       

      The
Administrator shall keep a record of all actions taken and shall keep all other
books of account, records, policies, and other data that may be necessary for
proper administration of the Plan and shall be responsible for supplying all
information and reports to the Internal Revenue Service, Department of Labor,
Participants, Beneficiaries and others as required by law.

       

      
        	
                2.6

              	
                APPOINTMENT
      OF ADVISERS

              

      

       

      The
Administrator, or the Trustee-with
the consent of the Administrator, may appoint counsel, specialists, advisers,
agents (including nonfiduciary agents) and other persons as the Administrator or
the Trustee deems necessary or desirable in connection with the administration
of this Plan, including but not limited to agents and advisers to assist with
the administration and management of the Plan, and thereby to provide, among
such other duties as the Administrator may appoint, assistance with maintaining
Plan records and the providing of investment information to the Plan's
investment fiduciaries and to Plan Participants.

       

      
        	
                2.7

              	
                PAYMENT
      OF EXPENSES

              

      

       

      All
expenses of administration may be paid out of the Trust Fund unless paid by the
Employer. Such expenses shall include any expenses incident to the functioning
of the Administrator, or any person or persons retained or appointed by any
Named Fiduciary incident to the exercise of their duties under the Plan,
including, but not limited to, fees of accountants, counsel, Investment
Managers, agents (including nonfiduciary agents) appointed for the purpose of
assisting the Administrator or the Trustee in carrying out the instructions of
Participants as to the directed investment of their accounts and other
specialists and their agents, the costs of any bonds required pursuant to Act
Section 412, and other costs of administering the Plan. Until paid, the expenses
shall constitute a liability of the Trust Fund.

       

      
        	
                2.8

              	
                CLAIMS
      PROCEDURE

              

      

       

      Claims
for benefits under the Plan may be filed in writing with the Administrator.
Written notice of the disposition of a claim shall be furnished to the claimant
within 90 days after the application is filed, or such period as is required by
applicable law or Department of Labor regulation. In the event the claim is
denied, the reasons for the denial shall be specifically set forth in the notice
in language calculated to be understood by the claimant, pertinent provisions of
the Plan shall be cited, and, where appropriate, an explanation as to how the
claimant can perfect the claim will be provided. In addition, the claimant shall
be furnished with an explanation of the Plan's claims review
procedure.

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      
        	
                2.9

              	
                CLAIMS
      REVIEW PROCEDURE

              

      

       

      Any
Employee, former Employee, or Beneficiary of either, who has been denied a
benefit by a decision of the Administrator pursuant to Section 2.8 shall be
entitled to request the Administrator to give further consideration to a claim
by filing with the Administrator a written request for a hearing. Such request,
together with a written statement of the reasons why the claimant believes the
claim should be allowed, shall be filed with the Administrator no later than
sixty (60) days after receipt of the written notification provided for in
Section 2.8. The Administrator shall then conduct a hearing within the next
sixty (60) days, at which the claimant may be represented by an attorney or any
other representative of such claimant's choosing and expense and at which the
claimant shall have an opportunity to submit written and oral evidence and
arguments in support of the claim. At the hearing (or prior thereto upon five
(5) business days
written notice to the Administrator) the claimant or the claimant's
representative shall have an opportunity to review all documents in the
possession of the Administrator which are pertinent to the claim at issue and
its disallowance. Either the claimant or the Administrator may cause a court
reporter to attend the hearing and record the proceedings. In such event, a
complete written
transcript of the proceedings shall be furnished to both parties by the court
reporter. The full
expense of any such court reporter and such transcripts shall be borne by the
party causing the court
reporter to attend the hearing. A final decision as to the allowance of the
claim shall be made by the Administrator within sixty (60) days of receipt of
the appeal (unless there has been an extension of sixty (60) days due to special
circumstances, provided the delay and the special circumstances occasioning it
are communicated to the claimant within the sixty (60) day period). Such
communication shall be written in a manner calculated to be understood by the
claimant and shall include specific reasons for the decision and specific
references to the pertinent Plan provisions on which the decision is
based.

       

      ARTICLE
III

      ELIGIBILITY

       

      
        	
                3.1

              	
                CONDITIONS
      OF ELIGIBILITY

              

      

       

      Any
Eligible Employee shall be eligible to participate hereunder on the date of such
Employee's employment with the Employer. However, any Employee who was a
Participant in the Plan prior to the effective date of this amendment and
restatement shall continue to participate in the Plan.

       

      
        	
                3.2

              	
                EFFECTIVE
      DATE OF PARTICIPATION

              

      

       

      An
Eligible Employee shall become a Participant effective as of the first day of
the month coinciding with or next following the date on which such Employee met
the eligibility requirements of Section 3.1, provided said Employee was still
employed as of such date (or if not employed on such date, as of the date of
rehire if a 1-Year Break in Service has not occurred or, if later, the date that
the Employee would have otherwise entered the Plan had the Employee not
terminated employment).

       

      
        	
                3.3

              	
                DETERMINATION
      OF ELIGIBILITY

              

      

       

      The
Administrator shall determine the eligibility of each Employee for participation
in the Plan based upon information furnished by the Employer. Such determination
shall be conclusive
and binding upon all persons, as long as the same is made pursuant to the Plan
and the Act. Such determination shall be subject to review pursuant to Section
2.9.

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      
        	
                3.4

              	
                TERMINATION
      OF ELIGIBILITY

              

      

       

      In the
event a Participant shall go from a classification of an Eligible Employee to an
ineligible Employee, such Former Participant shall continue to vest in the Plan
for each Year of Service completed while a noneligible Employee, until such time
as the Participant's Account shall be forfeited or distributed pursuant to the
terms of the Plan. Additionally, the Former Participant's interest in the Plan
shall continue to share in the earnings of the Trust Fund.

       

      
        	
                3.5

              	
                OMISSION
      OF ELIGIBLE EMPLOYEE

              

      

       

      If, in
any Plan Year, any Employee who should be included as a Participant in the Plan
is erroneously omitted and discovery of such omission is not made until after a
contribution by the Employer for the year has been made and allocated, then the
Employer shall make a subsequent contribution, if necessary after the
application of Section 4.4(e), so that the omitted Employee receives a total
amount which the Employee would have received (including both Employer
contributions and earnings thereon) had the Employee not been omitted. Such
contribution shall be made regardless of whether it is deductible in whole or in
part in any taxable year under applicable provisions of the Code.

       

      
        	
                3.6

              	
                INCLUSION
      OF INELIGIBLE EMPLOYEE

              

      

       

      If, in
any Plan Year, any person who should not have been included as a Participant in
the Plan is erroneously included and discovery of such inclusion is not made
until after a contribution for the year has been made and allocated, the
Employer shall be entitled to recover the contribution made with respect to the
ineligible person provided the error is discovered within twelve (12) months of
the date on which it was made. Otherwise, the amount contributed with respect to
the ineligible person shall constitute a Forfeiture for the Plan Year in which
the discovery is made. Notwithstanding the forgoing, any Deferred Compensation
made by an ineligible person shall be distributed to the person (along with any
earnings attributable to such Deferred Compensation).

       

      
        	
                3.7

              	
                REHIRED
      EMPLOYEES AND BREAKS IN SERVICE

              

      

       

      (a) If
any Participant becomes a Former Participant due to severance from employment
with the Employer and is reemployed by the Employer before a 1-Year Break in
Service occurs, the Former Participant shall become a Participant as of the
reemployment date.

       

      (b) If
any Participant becomes a Former Participant due to severance from employment
with the Employer and is reemployed after a 1-Year Break in Service has
occurred, Years of Service shall include Years of Service prior to the 1-Year
Break in Service subject to the following rules:

       

      (1)  
In the case of a Former Participant who under the Plan does not have
a
nonforfeitable right to any interest in the Plan resulting from Employer
contributions, Years of Service before a period of 1-Year Break in Service
will not
be taken into account if the number of consecutive 1-Year Breaks in Service
equal or exceed the greater of (A) five (5) or (B) the aggregate number of
pre-break Years of Service. Such aggregate number of Years of Service will not
include any Years of Service disregarded under the preceding sentence by reason
of prior 1-Year Breaks in Service.

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      (2)  
A Former Participant shall participate in the Plan as of the date of
reemployment.

       

      (c) After
a Former Participant who has severed employment with the Employer
incurs five (5) consecutive 1-Year Breaks in Service, the Vested portion of said
Former Participant's Account attributable to pre-break service shall not be
increased as a result of post-break service. In such case, separate accounts
will be maintained as follows:

       

      (1)   one
account for nonforfeitable benefits attributable to pre-break service;
and

       

      (2)   one
account representing the Participant's Employer derived account balance in the
Plan attributable to post-break service.

       

      (d) If
any Participant becomes a Former Participant due to severance of
employment with the Employer and is reemployed by the Employer before five (5)
consecutive 1-Year Breaks in Service, and such Former Participant had received a
distribution of the entire Vested interest prior to reemployment, then the
forfeited account shall be reinstated only if the Former Participant repays the
full amount which had been distributed. Such repayment must be made before the
earlier of five (5) years after the first date on which the Participant is
subsequently reemployed by the Employer or the close of the first period of five
(5) consecutive 1-Year Breaks in Service commencing after the distribution. If a
distribution occurs for any reason other than a severance of employment, the
time for repayment may not end earlier than five (5) years after the date of
distribution. In the event the Former Participant does repay the full amount
distributed, the undistributed forfeited portion of the Participant's Account
must be restored in full, unadjusted by any gains or losses occurring subsequent
to the Valuation Date preceding the distribution. The source for such
reinstatement may be Forfeitures occurring during the Plan Year. If such source
is insufficient, then the Employer will contribute an amount which is sufficient
to restore any such forfeited Accounts provided, however, that if a
discretionary contribution is made for such year, such contribution shall first
be applied to restore any such Accounts and the remainder shall be allocated in
accordance with Section 4.4.

       

      
        	
                3.8

              	
                ELECTION
      NOT TO PARTICIPATE

              

      

       

      An
Employee may, subject to the approval of the Employer, elect voluntarily not to
participate in the Plan. The election not to participate must be communicated to
the Employer, in writing, within a reasonable period of time before the
beginning of a Plan Year.

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      ARTICLE
IV

      CONTRIBUTION
AND ALLOCATION

       

      
        
          	
                  4.1

                	
                  FORMULA
      FOR DETERMINING EMPLOYER
CONTRIBUTION

                

        

         

        For each
Plan Year, the Employer shall contribute to the Plan:

      

       

      (a)    The
amount of the total salary reduction elections of all Participants made pursuant
to Section 4.2(a), which amount shall be deemed an Employer Elective
Contribution.

       

      (b)    On
behalf of each Participant who is eligible to share in matching contributions
for the Plan Year, a matching contribution equal to 75% of each such
Participant's Deferred Compensation, which amount shall be deemed an Employer
Non-Elective Contribution.

       

      Except,
however, in applying the matching percentage specified above, only salary
reductions up to 6% of payroll period Compensation shall be
considered.

       

      (c)     On
behalf of each Non-Highly Compensated Participant who is eligible to share in
the Qualified Non-Elective Contribution for the Plan Year, a discretionary
Qualified Non-Elective Contribution equal to a uniform percentage of each
eligible individual's Compensation, the exact percentage, if any, to be
determined each year by the Employer. Any Employer Qualified Non-Elective
Contribution shall be deemed an Employer Elective Contribution.

       

      (d)     A
discretionary amount, which amount, if any, shall be deemed an Employer
Non-Elective Contribution.

       

      (e)      Additionally,
to the extent necessary, the Employer shall contribute to the Plan the amount
necessary to provide the top heavy minimum contribution. All contributions by
the Employer shall be made in cash or in such property as is acceptable to the
Trustee.

       

      
        	
                4.2

              	
                PARTICIPANT'S
      SALARY REDUCTION ELECTION

              

      

       

      (a)  
 Each Participant may elect to defer Compensation which would have been
received in the Plan Year, but for the deferral election, by up to 20%. A
deferral election (or modification of an earlier election) may not be made with
respect to Compensation which is currently available on or before the date the
Participant executed such election. For purposes of this Section, Compensation
shall be determined prior to any reductions made pursuant to Code Sections 125,
132(0(4) for Plan Years beginning after December 31, 2000, 402(e)(3),
402(h)(1)(B), 403(b) or 457(b), and Employee contributions described in Code
Section 414(h)(2) that are treated as Employer contributions.

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      The
amount by which Compensation is reduced shall be that Participant's Deferred
Compensation and be treated as an Employer Elective Contribution and allocated
to that Participant's Elective Account.

       

      (b)  
The balance in each Participant's Elective Account shall be fully Vested at
all times and, except as otherwise provided herein, shall not be subject to
Forfeiture for any reason.

       

      (c)  
Notwithstanding anything in the Plan to the contrary, amounts held in the
Participant's Elective Account may not be distributable (including any offset of
loans) earlier than:

       

      (1)     a
Participant's separation from service, Total and Permanent Disability, or
death;

       

      (2)     a
Participant's attainment of age 59 1/2;

       

      (3)     the
termination of the Plan without the existence at the time of Plan termination of
another defined contribution plan or the establishment of a successor defined
contribution plan by the Employer or an Affiliated Employer within the period
ending twelve months after distribution of all assets from the Plan maintained
by the Employer. For this purpose, a defined contribution plan does not include
an employee stock ownership plan (as defined in Code Section 4975(e)(7) or 409),
a simplified employee pension plan (as defined in Code Section 408(k)), or a
simple individual retirement account plan (as defined in Code Section
408(p));

       

      (4)     the
date of disposition by the Employer to an entity that is not an Affiliated
Employer of substantially all of the assets (within the meaning of Code Section
409(d)(2)) used in a trade or business of such corporation if such corporation
continues to maintain this Plan after the disposition with respect to a
Participant who continues employment with the corporation acquiring such
assets;

       

      (5)     the
date of disposition by the Employer or an Affiliated Employer who maintains the
Plan of its interest in a subsidiary (within the meaning of Code Section
409(d)(3)) to an entity which is not an Affiliated Employer but only with
respect to a Participant who continues employment with such subsidiary;
or

       

      (6)     the
proven financial hardship of a Participant, subject to the limitations of
Section 7.13.

       

      (d)  
For each Plan Year, a Participant's Deferred Compensation made under
this Plan and all other plans, contracts or arrangements of the Employer
maintaining this Plan shall not exceed, during any taxable year of the
Participant, the limitation imposed by Code Section 402(g), as in effect at the
beginning of such taxable year. If such dollar limitation is exceeded, a
Participant will be deemed to have notified the Administrator of such excess
amount which shall be distributed
in a manner consistent with Section 4.2(f). The dollar limitation shall be
adjusted annually pursuant to the method provided in Code Section 415(d) in
accordance with Regulations.

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      (e)    In
the event a Participant has received a hardship distribution from the
Participant's Elective Account pursuant to Section 7.13(b) or pursuant to
Regulation 1.401(k)-I (d)(2)(iv)(B) from any other plan maintained by the
Employer, then such Participant shall not be permitted to elect to have Deferred
Compensation contributed to the Plan for a period of twelve (12) months
following the receipt of the distribution. Furthermore, the dollar limitation
under Code Section 402(g) shall be reduced, with respect to the Participant's
taxable year following the taxable year in which the hardship distribution was
made, by the amount of such Participant's Deferred Compensation, if any,
pursuant to this Plan (and any other plan maintained by the Employer) for the
taxable year of the hardship distribution.

       

      (f)     If
a Participant's Deferred Compensation under this Plan together with any elective
deferrals (as defined in Regulation 1.402(g)-1(b)) under another qualified cash
or deferred arrangement (as described in Code Section 401(k)), a simplified
employee pension (as described in Code Section 408(k)(6)), a simple individual
retirement account plan (as described in Code Section 408(p)), a salary
reduction arrangement (within the meaning of Code Section 3121(a)(5)(D)), a
deferred compensation plan under Code Section 457(b), or a trust described in
Code Section 501(c)(18) cumulatively exceed the limitation imposed by Code
Section 402(g) (as adjusted annually in accordance with the method provided in
Code Section 415(d) pursuant to Regulations) for such Participant's taxable
year, the Participant may, not later than March 1 following the close of the
Participant's taxable year, notify the Administrator in writing of such excess
and request that the Participant's Deferred Compensation under this Plan be
reduced by an amount specified by the Participant. In such event, the
Administrator may direct the Trustee to distribute such excess amount (and any
Income allocable to such excess amount) to the Participant not later than the
first April 15th following the close of the Participant's taxable year. Any
distribution of less than the entire amount of Excess Deferred Compensation and
Income shall be treated as a pro rata distribution of Excess Deferred
Compensation and Income. The amount distributed shall not exceed the
Participant's Deferred Compensation under the Plan for the taxable year (and any
Income allocable to such excess amount). Any distribution on or before the last
day of the Participant's taxable year must satisfy each of the following
conditions:

       

      (1)    the
distribution must be made after the date on which the Plan received the Excess
Deferred Compensation;

       

      (2)    the
Participant shall designate the distribution as Excess Deferred Compensation;
and

       

      (3)    the
Plan must designate the distribution as a distribution of Excess Deferred
Compensation. Any
distribution made pursuant to this Section 4.2(f) shall be made first from
unmatched Deferred Compensation and, thereafter, from Deferred Compensation
which is matched. Matching contributions which relate to such Deferred
Compensation shall be forfeited.

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      (g)  Notwithstanding
Section 4.2(f) above, a Participant's Excess Deferred
Compensation shall be reduced, but not below zero, by any distribution of Excess
Contributions pursuant to Section 4.6(a) for the Plan Year beginning with or
within the taxable year of the Participant.

       

      (h)  At
Normal Retirement Date, or such other date when the Participant
shall be entitled to receive benefits, the fair market value of the
Participant's Elective Account shall be used to provide additional benefits to
the Participant or the Participant's Beneficiary.

       

      (i)   Employer
Elective Contributions made pursuant to this Section may be
segregated into a separate account for each Participant in a federally insured
savings account, certificate of deposit in a bank or savings and loan
association, money market certificate, or other short-term debt security
acceptable to the Trustee until such time as the allocations pursuant to Section
4.4 have been made.

       

      (j)   The
Employer and the Administrator shall implement the salary reduction
elections provided for herein in accordance with the following:

       

      (4)    A
Participant must make an initial salary deferral election within a reasonable
time, not to exceed thirty (30) days, after entering the Plan pursuant to
Section 3.2. If the Participant fails to make an initial salary deferral
election within such time, then such Participant may thereafter make an election
in accordance with the rules governing modifications. The Participant shall make
such an election by entering into a written salary reduction agreement with the
Employer and filing such agreement with the Administrator. Such election shall
initially be effective beginning with the pay period following the acceptance of
the salary reduction agreement by the Administrator, shall not have retroactive
effect and shall remain in force until revoked.

       

      (5)    A
Participant may modify a prior election during the Plan Year and concurrently
make a new election by filing a written notice with the Administrator within a
reasonable time before the pay period for which such modification is to be
effective. However, modifications to a salary deferral election shall only be
permitted semi-annually, during election periods established by the
Administrator prior to the first day of a Plan Year and the first day of the
seventh month of a Plan Year. Any modification shall not have retroactive effect
and shall remain in force until revoked.

       

      (6)  
A Participant may elect to prospectively revoke the Participant's salary
reduction agreement in its entirety at any time during the Plan Year
by
providing the Administrator with thirty (30) days written notice of such
revocation (or upon such shorter notice period as may be acceptable to the
Administrator). Such revocation shall become effective as of the beginning of
the first pay period coincident with or next following the expiration of the
notice period. Furthermore, the termination of the Participant's employment, or
the cessation of participation for any reason, shall be deemed to revoke any
salary reduction agreement then in effect, effective immediately following the
close of the pay period within which such termination or cessation
occurs.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      
        	
                4.3

              	
                TIME
      OF PAYMENT OF EMPLOYER CONTRIBUTION

              

      

       

      The
Employer may make its contribution to the Plan for a particular Plan Year at
such time as the Employer, in its sole discretion, determines. If the Employer
makes a contribution for a particular Plan Year after the close of that Plan
Year, the Employer will designate to the Trustee the Plan Year for which the
Employer is making its contribution.

       

      
        	
                4.4

              	
                ALLOCATION
      OF CONTRIBUTION, FORFEITURES AND
EARNINGS

              

      

       

      (a)    The
Administrator shall establish and maintain an account in the name of each
Participant to which the Administrator shall credit as of each Anniversary Date,
or other Valuation Date, all amounts allocated to each such Participant as set
forth herein.

       

      (b)    The
Employer shall provide the Administrator with all information required by the
Administrator to make a proper allocation of the Employer contributions for each
Plan Year. Within a reasonable period of time after the date of receipt by the
Administrator of such information, the Administrator shall allocate such
contribution as follows:

       

      (1)    With
respect to the Employer Elective Contribution made pursuant to Section 4.1(a),
to each Participant's Elective Account in an amount equal to each such
Participant's Deferred Compensation for the year.

       

      (2)    With
respect to the Employer Non-Elective Contribution made pursuant to Section
4.1(b), to each Participant's Account in accordance with Section
4.1(b).

       

      Any
Participant actively employed during the Plan Year shall be eligible to share in
the matching contribution for the Plan Year.

       

      (3)    With
respect to the Employer Qualified Non-Elective Contribution made
pursuant to Section 4.1(c), to each Participant's Elective Account when used to
satisfy the "Actual Deferral Percentage" tests or Participant's Account in
accordance with Section 4.1(c).

       

      Only
Non-Highly Compensated Participants who have completed a Year of Service during
the Plan Year and are actively employed on the last day of the
Plan Year shall be eligible to share in the Qualified Non-Elective Contribution
for the year.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      (4)  
With respect to the Employer Non-Elective Contribution made pursuant
to Section 4.1(d), to each Participant's Account in the same proportion that
each such Participant's Compensation for the year bears to the total
Compensation of all Participants for such year.

       

      Only
Participants who have completed a Year of Service during the Plan Year and are
actively employed on the last day of the Plan Year shall be eligible to share in
the discretionary contribution for the year.

       

      (c)    The
Company Stock Account of each Participant shall be credited as of each
Anniversary Date with Forfeitures of Company Stock and the Participant's
allocable share of Company Stock (including fractional shares) purchased and
paid for by the Plan or contributed in kind by the Employer. Dividends on
Company Stock held in the Participant's Company Stock Account shall be credited
to the Participant's Company Stock Account when paid to the Plan.

       

      (d)    As
of each Valuation Date, before the current valuation period allocation of
Employer contributions and Forfeitures, any earnings or losses (net appreciation
or net depreciation) of the Trust Fund shall be allocated in the same proportion
that each Participant's and Former Participant's nonsegregated accounts (other
than each Participant's Company Stock Account) bear to the total of all
Participants' and Former Participants' nonsegregated accounts (other than each
Participant's Company Stock Account) as of such date. Earnings or losses with
respect to a Participant's Directed Account shall be allocated in accordance
with Section 4.12.

       

      Participants'
transfers from other qualified plans deposited in the general Trust Fund shall
share in any earnings and losses (net appreciation or net depreciation) of the
Trust Fund in the same manner provided above. Each segregated account maintained
on behalf of a Participant shall be credited or charged with its separate
earnings and losses.

       

      (e)     On
or before each Anniversary Date any amounts which became

       

      Forfeitures
since the last Anniversary Date may be made available to reinstate previously
forfeited account balances of Former Participants, if any, in accordance with
Section 3.7(d), be used to satisfy any contribution that may be required
pursuant to Section 3.5 and/or 7.8, or used to pay any administrative expenses
of the Plan. The remaining Forfeitures, if any, shall be allocated to
Participants' Accounts in the following manner:

       

      (1)  
Forfeitures attributable to Employer matching contributions made pursuant
to Section 4.1(b) shall be allocated among the Participants' Accounts in the
same proportion that each such Participant's Compensation for the year bears to
the total Compensation of all Participants for the year. Except,
however, Participants who are not eligible to share in matching contributions
(whether or not a deferral election was made or suspended pursuant to Section
4.2(e)) for a Plan Year shall not share in Plan Forfeitures attributable to
Employer matching contributions for that year.

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      (2)  
Forfeitures attributable to Employer discretionary contributions made
pursuant to Section 4.1(d) shall be added to any Employer discretionary
contribution for the Plan Year in which such Forfeitures occur and allocated
among the Participants' Accounts in the same manner as any Employer
discretionary contribution.

       

      Provided,
however, that in the event the allocation of Forfeitures provided herein shall
cause the "annual addition" (as defined in Section 4.9) to any Participant's
Account to exceed the amount allowable by the Code, the excess shall be
reallocated in accordance with Section 4.10.

       

      (f)     For
any Top Heavy Plan Year, Non-Key Employees not otherwise eligible to share in
the allocation of contributions and Forfeitures as provided above, shall receive
the minimum allocation provided for in Section 4.4(h) if eligible pursuant to
the provisions of Section 4.4(j).

       

      (g)    Notwithstanding
the foregoing, Participants who are not actively employed on the last day of the
Plan Year due to Retirement (Early, Normal or Late), Total and Permanent
Disability or death shall share in the allocation of contributions and
Forfeitures for that Plan Year.

       

      (h)    Minimum
Allocations Required for Top Heavy Plan Years: Notwithstanding the foregoing,
for any Top Heavy Plan Year, the sum of the Employer contributions and
Forfeitures allocated to the Participant's Combined Account of each Non-Key
Employee shall be equal to at least three percent (3%) of such Non-Key
Employee's "415 Compensation" (reduced by contributions and forfeitures, if any,
allocated to each Non-Key Employee in any defined contribution plan included
with this Plan in a Required Aggregation Group). However, if (1) the sum of the
Employer contributions and Forfeitures allocated to the Participant's Combined
Account of each Key Employee for such Top Heavy Plan Year is less than three
percent (3%) of each Key Employee's "415 Compensation" and (2) this Plan is not
required to be included in an Aggregation Group to enable a defined benefit plan
to meet the requirements of Code Section 401(a)(4) or 410, the sum of the
Employer contributions and Forfeitures allocated to the Participant's Combined
Account of each Non-Key Employee shall be equal to the largest percentage
allocated to the Participant's Combined Account of any Key Employee. However, in
determining whether a Non-Key Employee has received the required minimum
allocation, such Non-Key Employee's Deferred Compensation and matching
contributions needed to satisfy the "Actual Contribution Percentage" tests
pursuant to Section 4.7(a) shall not be taken into account.

       

      However,
no such minimum allocation shall be required in this Plan for any Non-Key
Employee who participates in another defined contribution plan subject to Code
Section 412 included with this Plan in a Required Aggregation
Group.

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

      (i)  
For purposes of the minimum allocations set forth above, the percentage
allocated to the Participant's Combined Account of any Key Employee shall be
equal to the ratio of the sum of the Employer contributions and Forfeitures
allocated on behalf of such Key Employee divided by the "415 Compensation" for
such Key Employee.

       

      For any
Top Heavy Plan Year, the minimum allocations set forth above shall be allocated
to the Participant's Combined Account of all Non-Key Employees who are
Participants and who are employed by the Employer on the last day of the Plan
Year, including Non-Key Employees who have (1) failed to complete a Year of
Service; and (2) declined to make mandatory contributions (if required) or, in
the case of a cash or deferred arrangement, elective contributions to the
Plan.

       

      (k)  
For the purposes of this Section, "415 Compensation" in excess of $150,000
(or such other amount provided in the Code) shall be disregarded. Such amount
shall be adjusted for increases in the cost of living in accordance with Code
Section 401(a)(17)(B), except that the dollar increase in effect on January 1 of
any calendar year shall be effective for the Plan Year beginning with or within
such calendar year. If "415 Compensation" for any prior determination period is
taken into account in determining a Participant's minimum benefit for the
current Plan Year, the "415 Compensation" for such determination period is
subject to the applicable annual "415 Compensation" limit in effect for that
prior period. For this purpose, in determining the minimum benefit in Plan Years
beginning on or after January 1, 1989, the annual "415 Compensation" limit in
effect for determination periods beginning before that date is $200,000 (or such
other amount as adjusted for increases in the cost of living in accordance with
Code Section 415(d) for determination periods beginning on or after January 1,
1989, and in accordance with Code Section 401(a)(17)(B) for determination
periods beginning on or after January 1, 1994). For determination periods
beginning prior to January 1, 1989, the $200,000 limit shall apply only for Top
Heavy Plan Years and shall not be adjusted. For any short Plan Year the "415
Compensation" limit shall be an amount equal to the "415 Compensation" limit for
the calendar year in which the Plan Year begins multiplied by the ratio obtained
by dividing the number of full months in the short Plan Year by twelve
(12).

       

      Notwithstanding
anything herein to the contrary, Participants who terminated employment for any
reason during the Plan Year shall share in the salary reduction contributions
made by the Employer for the year of termination without regard to the Hours of
Service credited.

       

      (m)  
Notwithstanding anything in this Section to the contrary, all information
necessary to properly reflect a given transaction may not be available until
after the date specified herein for processing such transaction, in which case
the
transaction will be reflected when such information is received and processed.
Subject to express limits that may be imposed under the Code, the processing of
any contribution, distribution or other transaction may be delayed for any
legitimate business reason (including, but not limited to, failure of systems or
computer programs, failure of the means of the transmission of data, force
majeure, the failure of a service provider to timely receive values or prices,
and the correction for errors or omissions or the errors or omissions of any
service provider). The processing date of a transaction will be binding for all
purposes of the Plan.

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

      (n)  
Notwithstanding anything to the contrary, if this is a Plan that would
otherwise fail to meet the requirements of Code Section 410(b)(1) and the
Regulations thereunder because Employer contributions would not be allocated to
a sufficient number or percentage of Participants for a Plan Year, then the
following rules shall apply:

       

      (1)    The
group of Participants eligible to share in the Employer's contribution and
Forfeitures for the Plan Year shall be expanded to include the minimum number of
Participants who would not otherwise be eligible as are necessary to satisfy the
applicable test specified above. The specific Participants who shall become
eligible under the terms of this paragraph shall be those who have not separated
from service prior to the last day of the Plan Year and have completed the
greatest number of Hours of Service in the Plan Year.

       

      (2)    If
after application of paragraph (1) above, the applicable test is still not
satisfied, then the group of Participants eligible to share in the Employer's
contribution and Forfeitures for the Plan Year shall be further expanded to
include the minimum number of Participants who have separated from service prior
to the last day of the Plan Year as are necessary to satisfy the applicable
test. The specific Participants who shall become eligible to share shall be
those Participants who have completed the greatest number of Hours of Service in
the Plan Year before terminating employment.

       

      (3)    Nothing
in this Section shall permit the reduction of a Participant's accrued benefit.
Therefore any amounts that have previously been allocated to Participants may
not be reallocated to satisfy these requirements. In such event, the Employer
shall make an additional contribution equal to the amount such affected
Participants would have received had they been included in the allocations, even
if it exceeds the amount which would be deductible under Code Section 404. Any
adjustment to the allocations pursuant to this paragraph shall be considered a
retroactive amendment adopted by the last day of the Plan Year.

       

      (4)    Notwithstanding
the foregoing, if the portion of the Plan which is not a
Code Section 401(k) or 401(m) plan would fail to satisfy Code Section 410(b) if
the coverage tests were applied by treating those Participants
whose only allocation would otherwise be provided under the top heavy formula as
if they were not currently benefiting under the Plan, then, for purposes of this
Section 4.4(n), such Participants shall be treated as not benefiting and shall
therefore be eligible to be included in the expanded
class of Participants who will share in the allocation provided under the Plan's
non top heavy formula.

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

      
        	
                4.5

              	
                ACTUAL
      DEFERRAL PERCENTAGE TESTS

              

      

       

      (a)
Maximum Annual Allocation: For each Plan Year beginning after December
31, 1996, the annual allocation derived from Employer Elective Contributions to
a Highly Compensated Participant's Elective Account shall satisfy one of the
following tests:

       

      (1)           The
"Actual Deferral Percentage" for the Highly Compensated Participant group shall
not be more than the "Actual Deferral Percentage" of the Non-Highly Compensated
Participant group (for the preceding Plan Year if the prior year testing method
is used to calculate the "Actual Deferral Percentage" for the Non-Highly
Compensated Participant group) multiplied by 1.25, or

       

      (2)           The
excess of the "Actual Deferral Percentage" for the Highly Compensated
Participant group over the "Actual Deferral Percentage" for the Non-Highly
Compensated Participant group (for the preceding Plan Year if the prior year
testing method is used to calculate the "Actual Deferral Percentage" for the
Non-Highly Compensated Participant group) shall not be more than two percentage
points. Additionally, the "Actual Deferral Percentage" for the Highly
Compensated Participant group shall not exceed the "Actual Deferral Percentage"
for the Non-Highly Compensated Participant group (for the preceding Plan Year if
the prior year testing method is used to calculate the "Actual Deferral
Percentage" for the Non-Highly Compensated Participant group) multiplied by 2.
The provisions of Code Section 401(k)(3) and Regulation 1.401(k)-1(b) are
incorporated herein by reference.

       

      However,
in order to prevent the multiple use of the alternative method described in (2)
above and in Code Section 401(m)(9)(A), any Highly Compensated Participant
eligible to make elective deferrals pursuant to Section 4.2 and to make Employee
contributions or to receive matching contributions under this Plan or under any
other plan maintained by the Employer or an Affiliated Employer shall have a
combination of such Participant's Elective Contributions and Employer matching
contributions reduced pursuant to Regulation 1.401(m)-2, the provisions of which
are incorporated herein by reference.

       

      (b) For
the purposes of this Section "Actual Deferral Percentage" means,
with respect to the Highly Compensated Participant group and Non-Highly
Compensated Participant group for a Plan Year, the average of the ratios,
calculated separately for each Participant in such group, of the amount of
Employer
Elective Contributions allocated to each Participant's Elective Account for such
Plan Year, to such Participant's "414(s) Compensation" for such Plan Year. The
actual deferral ratio for each Participant and the "Actual Deferral Percentage"
for each group shall be calculated to the nearest one-hundredth of one percent.
Employer Elective Contributions allocated to each Non-Highly Compensated
Participant's Elective Account shall be reduced by Excess Deferred Compensation
to the extent such excess amounts are made under this Plan or any other plan
maintained by the Employer.

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

      Notwithstanding
the above, if the prior year testing method is used to calculate the "Actual
Deferral Percentage" for the Non-Highly Compensated Participant group for the
first Plan Year of this amendment and restatement, the "Actual Deferral
Percentage" for the Non-Highly Compensated Participant group for the preceding
Plan Year shall be calculated pursuant to the provisions of the Plan then in
effect.

       

      (c)           For
the purposes of Sections 4.5(a) and 4.6, a Highly Compensated Participant and a
Non-Highly Compensated Participant shall include any Employee eligible to make a
deferral election pursuant to Section 4.2, whether or not such deferral election
was made or suspended pursuant to Section 4.2.

       

      Notwithstanding
the above, if the prior year testing method is used to calculate the "Actual
Deferral Percentage" for the Non-Highly Compensated Participant group for the
first Plan Year of this amendment and restatement, for purposes of Section
4.5(a) and 4.6, a Non-Highly Compensated Participant shall include any such
Employee eligible to make a deferral election, whether or not such deferral
election was made or suspended, pursuant to the provisions of the Plan in effect
for the preceding Plan Year.

       

      (d)           For
purposes of this Section and Code Sections 401(a)(4), 410(b) and 401(k), this
Plan may not be combined with any other plan.

       

      (e)           For
the purpose of this Section, for Plan Years beginning after December 31, 1996,
unless otherwise provided below, when calculating the "Actual Deferral
Percentage" for the Non-Highly Compensated Participant group, the prior year
testing method shall be used. Any change from the current year testing method to
the prior year testing method shall be made pursuant to Internal Revenue Service
Notice 98-1, Section VII (or superseding guidance), the provisions of which are
incorporated herein by reference.

       

      For the
Plan Year beginning after December 31, 1996, the prior year testing method shall
be used.

       

      For the
Plan Year beginning after December 31, 1997, the prior year testing method shall
be used.

       

      For the
Plan Year beginning after December 31, 1998, the prior year testing method shall
be used.

       

      For the
Plan Year beginning after December 31, 1999, the prior year testing method shall
be used.

       

      For the
Plan Year beginning after December 31, 2000, the prior year testing method shall
be used.

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

      (f) 
Notwithstanding anything in this Section to the contrary, the provisions of this
Section and Section 4.6 may be applied separately (or will be applied separately
to the extent required by Regulations) to each plan within the meaning of
Regulation 1.401(k)-1(g)(11). Furthermore, for Plan Years beginning after
December 31, 1998, the provisions of Code Section 401(k)(3)(F) may be used to
exclude from consideration all Non-Highly Compensated Employees who have not
satisfied the minimum age and service requirements of Code Section
410(a)(1)(A).

       

      
        	
                4.6

              	
                ADJUSTMENT
      TO ACTUAL DEFERRAL PERCENTAGE TESTS

              

      

       

      In the
event (or if it is anticipated) that the initial allocations of the Employer
Elective Contributions made pursuant to Section 4.4 do (or might) not satisfy
one of the tests set forth in Section 4.5(a) for Plan Years beginning after
December 31, 1996, the Administrator shall adjust Excess Contributions pursuant
to the options set forth below:

       

      (a) On or
before the fifteenth day of the third month following the end of each
Plan Year, but in no event later than the close of the following Plan Year, the
Highly Compensated Participant having the largest dollar amount of Elective
Contributions shall have a portion of such Participant's Elective Contributions
distributed until the total amount of Excess Contributions has been distributed,
or until the amount of such Participant's Elective Contributions equals the
Elective Contributions of the Highly Compensated Participant having the second
largest dollar amount of Elective Contributions. This process shall continue
until the total amount of Excess Contributions has been distributed. In
determining the amount of Excess Contributions to be distributed with respect to
an affected Highly Compensated Participant as determined herein, such amount
shall be reduced pursuant to Section 4.2(f) by any Excess Deferred Compensation
previously distributed to such affected Highly Compensated Participant for such
Participant's taxable year ending with or within such Plan Year.

       

      (1) 
With respect to the distribution of Excess Contributions pursuantto (a)
above, such distribution:

       

      (i)      may be postponed but not
later than the close of the Plan Year following the Plan Year to which they are
allocable;

       

      (ii)     shall
be adjusted for Income; and

       

      (iii)    shall
be designated by the Employer as a distribution of Excess Contributions (and
Income).

       

      (2)  Any
distribution of less than the entire amount of Excess Contributions shall be
treated as a pro rata distribution of Excess Contributions and
Income.

       

      (3)  Matching
contributions which relate to Excess Contributions shall be
forfeited unless the related matching contribution is distributed as an Excess
Aggregate Contribution pursuant to Section 4.8.

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

      (b)
Notwithstanding the above, within twelve (12) months after the end of
the Plan Year, the Employer may make a special Qualified Non-Elective
Contribution in accordance with one of the following provisions which
contribution shall be allocated to the Participant's Elective Account of each
Non-Highly Compensated Participant eligible to share in the allocation in
accordance with such provision. The Employer shall provide the Administrator
with written notification of the amount of the contribution being made and for
which provision it is being made pursuant to:

       

      (1)  A
special Qualified Non-Elective Contribution may be made on behalf of
Non-Highly Compensated Participants in an amount sufficient to satisfy (or to
prevent an anticipated failure of) one of the tests set forth in Section 4.5(a).
Such contribution shall be allocated in the same proportion that each Non-Highly
Compensated Participant's 414(s) Compensated for the year (or prior year if the
prior year testing method is being used) bears to the total 414(s) Compensation
of all Non-Highly Compensated Participants for such year.

       

      (2)  A
special Qualified Non-Elective Contribution may be made on behalf of
Non-Highly Compensated Participants in an amount sufficient to satisfy (or to
prevent an anticipated failure of) one of the tests set forth in Section 4.5(a).
Such contribution shall be allocated in the same proportion that each Non-Highly
Compensated Participant electing salary reductions pursuant to Section 4.2 in
the same proportion that each such Non-Highly Compensated Participant's Deferred
Compensation for the year (or at the end of the prior Plan Year if the prior
year testing method is being used) bears to the total Deferred Compensation of
all such Non-Highly Compensated Participants for such year.

       

      (3)  A
special Qualified Non-Elective Contribution may be made on behalf of
Non-Highly Compensated Participants in an amount sufficient to satisfy (or to
prevent an anticipated failure of) one of the tests set forth in Section 4.5(a).
Such contribution shall be allocated in equal amounts (per capita).

       

      (4)  A
special Qualified Non-Elective Contribution may be made on behalf of
Non-Highly Compensated Participants electing salary reductions pursuant to
Section 4.2 in an amount sufficient to satisfy (or to prevent an anticipated
failure of) one of the tests set forth in Section 4.5(a). Such contribution
shall be allocated for the year (or at the end of the prior Plan Year if the
prior year testing method is used) to each Non-Highly Compensated
Participant electing salary reductions pursuant to Section 4.2 in equal amounts
(per capita).

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

      (5) 
A special Qualified Non-Elective Contribution may be made on behalf of
Non-Highly Compensated Participants in an amount sufficient to satisfy (or to
prevent an anticipated failure of) one of the tests set forth in Section 4.5(a).
Such contribution shall be allocated to the Non-Highly Compensated Participant
having the lowest 414(s) Compensation, until one of the tests set forth in
Section 4.5(a) is satisfied (or is anticipated to be satisfied), or until such
Non-Highly Compensated Participant has received the maximum "annual addition"
pursuant to Section 4.9. This process shall continue until one of the tests set
forth in Section 4.5(a) is satisfied (or is anticipated to be
satisfied).

       

      Notwithstanding
the above, at the Employer's discretion, Non-Highly Compensated Participants who
are not employed at the end of the Plan Year (or at the end of the prior Plan
Year if the prior year testing method is being used) shall not be eligible to
receive a special Qualified Non-Elective Contribution and shall be
disregarded.

       

      Notwithstanding
the above, for Plan Years beginning after December 31, 1998, if the testing
method changes from the current year testing method to the prior year testing
method, then for purposes of preventing the double counting of Qualified
Non-Elective Contributions for the first testing year for which the change is
effective, any special Qualified Non-Elective Contribution on behalf of
Non-Highly Compensated Participants used to satisfy the "Actual Deferral
Percentage" or "Actual Contribution Percentage" test under the current year
testing method for the prior year testing year shall be
disregarded.

       

      (c)           If
during a Plan Year, it is projected that the aggregate amount of Elective
Contributions to be allocated to all Highly Compensated Participants under this
Plan would cause the Plan to fail the tests set forth in Section 4.5(a), then
the Administrator may automatically reduce the deferral amount of affected
Highly Compensated Participants, beginning with the Highly Compensated
Participant who has the highest deferral ratio until it is anticipated the Plan
will pass the tests or until the actual deferral ratio equals the actual
deferral ratio of the Highly Compensated Participant having the next highest
actual deferral ratio. This process may continue until it is anticipated that
the Plan will satisfy one of the tests set forth in Section 4.5(a).
Alternatively, the Employer may specify a maximum percentage of Compensation
that may be deferred.

       

      (d)           Any
Excess Contributions (and Income) which are distributed on or after
2 1/2 months after the end of the Plan Year shall be subject to the ten percent
(10%) Employer excise tax imposed by Code Section 4979.

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

      
        	
                4.7

              	
                ACTUAL
      CONTRIBUTION PERCENTAGE TESTS

              

      

       

      (a) The
"Actual Contribution Percentage" for Plan Years beginning after
December 31, 1996 for the Highly Compensated Participant group shall not exceed
the greater of

       

      (1)    125
percent of such percentage for the Non-Highly Compensated Participant group (for
the preceding Plan Year if the prior year testing method is used to calculate
the "Actual Deferral Percentage" for the Non-Highly Compensated Participant
group); or

       

      (2)    the
lesser of 200 percent of such percentage for the Non-Highly Compensated
Participant group (for the preceding Plan Year if the prior year testing method
is used to calculate the "Actual Deferral Percentage" for the Non-Highly
Compensated Participant group), or such percentage for the Non-Highly
Compensated Participant group (for the preceding Plan Year if the prior year
testing method is used to calculate the "Actual Deferral Percentage" for the
Non-Highly Compensated Participant group) plus 2 percentage points. However, to
prevent the multiple use of the alternative method described in this paragraph
and Code Section
401(m)(9)(A), any Highly Compensated Participant eligible to make elective
deferrals pursuant to Section 4.2 or any other cash or deferred arrangement
maintained by the Employer or an Affiliated Employer and to make Employee
contributions or to receive matching contributions under this Plan or under any
plan maintained by the Employer or an Affiliated Employer shall have a
combination of Elective Contributions and Employer matching contributions
reduced pursuant to Regulation 1.401(m)-2 and Section 4.8(a). The provisions of
Code Section 401(m) and Regulations 1.401(m)-1(b) and 1.401(m)-2 are
incorporated herein by reference.

       

      (b) For
the purposes of this Section and Section 4.8, "Actual Contribution
Percentage" for a Plan Year means, with respect to the Highly Compensated
Participant group and Non-Highly Compensated Participant group (for the
preceding Plan Year if the prior year testing method is used to calculate the
"Actual Deferral Percentage" for the Non-Highly Compensated Participant group),
the average of the ratios (calculated separately for each Participant in each
group and
rounded to the nearest one-hundredth of one percent) of:

       

      (1)    the
sum of Employer matching contributions made pursuant to Section 4.1(b) on behalf
of each such Participant for such Plan Year; to

       

      (2)    the
Participant's "414(s) Compensation" for such Plan Year.

       

      Notwithstanding
the above, if the prior year testing method is used to
calculate the "Actual Contribution Percentage" for the Non-Highly Compensated
Participant group for the first Plan Year of this amendment and restatement, for
purposes of Section 4.7(a), the "Actual Contribution Percentage" for the
Non-Highly Compensated Participant group for the preceding Plan Year shall be
determined pursuant to the provisions of the Plan then in effect.

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

      (c)    For
purposes of determining the "Actual Contribution Percentage," only Employer
matching contributions contributed to the Plan prior to the end of the
succeeding Plan Year shall be considered. In addition, the Administrator may
elect to take into account, with respect to Employees eligible to have Employer
matching contributions pursuant to Section 4.1(b) allocated to their accounts,
elective deferrals (as defined in Regulation 1.402(g)-1(b)) and
qualified non-elective contributions (as defined in Code Section 401(m)(4)(C))
contributed to any plan maintained by the Employer. Such elective deferrals and
qualified non-elective contributions shall be treated as Employer matching
contributions subject to Regulation 1.401(m)-1(b)(5) which is incorporated
herein by reference. However, the Plan Year must be the same as the plan year of
the plan to which the elective deferrals and the qualified non-elective
contributions are made.

       

      (d)   For
purposes of this Section and Code Sections 401(a)(4), 410(b) and 401(m), this
Plan may not be combined with any other plan.

       

      (e)   For
purposes of Sections 4.7(a) and 4.8, a Highly Compensated Participant and
Non-Highly Compensated Participant shall include any Employee eligible to have
Employer matching contributions (whether or not a deferral election was made or
suspended) allocated to the Participant's account for the Plan
Year.

       

      Notwithstanding
the above, if the prior year testing method is used to calculate the "Actual
Contribution Percentage" for the Non-Highly Compensated Participant group for
the first Plan Year of this amendment and restatement, for the purposes of
Section 4.7(a), a Non-Highly Compensated Participant shall include any such
Employee eligible to have Employer matching contributions (whether or not a
deferral election was made or suspended) allocated to the Participant's account
for the preceding Plan Year pursuant to the provisions of the Plan then in
effect.

       

      (f)    For
the purpose of this Section, for Plan Years beginning after December 31, 1996,
unless otherwise provided below, when calculating the "Actual Contribution
Percentage" for the Non-Highly Compensated Participant group, the prior year
testing method shall be used. Any change from the current year testing method to
the prior year testing method shall be made pursuant to Internal Revenue Service
Notice 98-1, Section VII (or superseding guidance), the provisions of which are
incorporated herein by reference.

       

      For the
Plan Year beginning after December 31, 1996, the prior year testing method shall
be used.

       

      For the
Plan Year beginning after December 31, 1997, the prior year testing method shall
be used.

       

      For the
Plan Year beginning after December 31, 1998, the prior year testing method shall
be used.

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

      For the
Plan Year beginning after December 31, 1999, the prior year testing method shall
be used.

       

      For the
Plan Year beginning after December 31, 2000, the prior year testing method shall
be used.

       

      (g)
Notwithstanding anything in this Section to the contrary, the provisions
of this Section and Section 4.8 may be applied separately (or will be applied
separately to the extent required by Regulations) to each plan within the
meaning of Regulation 1.401(k)-1(g)(11). Furthermore, for Plan Years beginning
after December 31, 1998, the provisions of Code Section 401(k)(3)(F) may be used
to exclude from consideration all Non-Highly Compensated Employees who have not
satisfied the minimum age and service requirements of Code Section
410(a)(1)(A).

       

      
        	
                4.8

              	
                ADJUSTMENT
      TO ACTUAL CONTRIBUTION PERCENTAGE
TESTS

              

      

       

      (a)           In
the event (or if it is anticipated) that, for Plan Years beginning after
December 31, 1996, the "Actual Contribution Percentage" for the Highly
Compensated Participant group exceeds (or might exceed) the "Actual Contribution
Percentage" for the Non-Highly Compensated Participant group pursuant to Section
4.7(a), the Administrator (on or before the fifteenth day of the third month
following the end of the Plan Year, but in no event later than the close of the
following Plan Year) shall direct the Trustee to distribute to the Highly
Compensated Participant having the largest dollar amount of contributions
determined pursuant to Section 4.7(b)(1), the Vested portion of such
contributions (and Income allocable to such contributions) and, if forfeitable,
forfeit such non- Vested Excess Aggregate Contributions attributable to Employer
matching contributions (and Income allocable to such forfeitures) until the
total amount of Excess Aggregate Contributions has been distributed, or until
the Participant's remaining amount equals the amount of contributions determined
pursuant to Section 4.7(b)(1) of the Highly Compensated Participant having the
second largest dollar amount of contributions. This process shall continue until
the total amount of Excess Aggregate Contributions has been
distributed.

       

      If the
correction of Excess Aggregate Contributions attributable to Employer matching
contributions is not in proportion to the Vested and non-Vested portion of such
contributions, then the Vested portion of the Participant's Account attributable
to Employer matching contributions after the correction shall be subject to
Section 7.5(k).

       

      (b)           Any
distribution and/or forfeiture of less than the entire amount of Excess
Aggregate Contributions (and Income) shall be treated as a pro rata distribution
and/or forfeiture of Excess Aggregate Contributions and Income. Distribution of
Excess Aggregate Contributions shall be designated by the Employer as a
distribution of Excess Aggregate Contributions (and Income).

       

      Forfeitures
of Excess Aggregate Contributions shall be treated in accordance with Section
4.4. However, no such forfeiture may be allocated to a Highly Compensated
Participant whose contributions are reduced pursuant to this
Section.

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

      (c)           Excess
Aggregate Contributions, including forfeited matching contributions, shall be
treated as Employer contributions for purposes of Code Sections 404 and 415 even
if distributed from the Plan.

       

      Forfeited
matching contributions that are reallocated to Participants' Accounts for the
Plan Year in which the forfeiture occurs shall be treated as an "annual
addition" pursuant to Section 4.9(b) for the Participants to whose Accounts they
are reallocated and for the Participants from whose Accounts they are
forfeited.

       

      (d)           The
determination of the amount of Excess Aggregate Contributions with respect to
any Plan Year shall be made after first determining the Excess Contributions, if
any, to be treated as after-tax voluntary Employee contributions due to
recharacterization for the plan year of any other qualified cash or deferred
arrangement (as defined in Code Section 401(k)) maintained by the Employer that
ends with or within the Plan Year.

       

      (e)           If
during a Plan Year the projected aggregate amount of Employer matching
contributions to be allocated to all Highly Compensated Participants under this
Plan would, by virtue of the tests set forth in Section 4.7(a), cause the Plan
to fail such tests, then the Administrator may automatically reduce
proportionately or in the order provided in Section 4.8(a) each affected Highly
Compensated Participant's projected share of such contributions by an amount
necessary to satisfy one of the tests set forth in Section 4.7(a).

       

      (f)           Notwithstanding
the above, within twelve (12) months after the end of the Plan Year, the
Employer may make a special Qualified Non-Elective Contribution in accordance
with one of the following provisions which contribution shall be allocated to
the Participant's Account of each Non-Highly Compensated Participant eligible to
share in the allocation in accordance with such provision. The Employer shall
provide the Administrator with written notification of the amount of the
contribution being made and for which provision it is being made pursuant
to:

       

      (1)  
A special Qualified Non-Elective Contribution may be made on behalf of
Non-Highly Compensated Participants in an amount sufficient to satisfy (or to
prevent an anticipated failure of) one of the tests set forth in Section 4.7.
Such contribution shall be allocated in the same proportion that each Non-Highly
Compensated Participant's 414(s) Compensation for the year (or prior year if the
prior year testing method is being used) bears to the total 414(s) Compensation
of all Non-Highly Compensated Participants for such year.

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

      (2)   A
special Qualified Non-Elective Contribution may be made on behalf of Non-Highly
Compensated Participants in an amount sufficient to satisfy (or to prevent an
anticipated failure of) one of the tests set forth in Section 4.7. Such
contribution shall be allocated in the same proportion that each Non-Highly
Compensated Participant electing salary reductions pursuant to Section 4.2 in
the same proportion that each such Non-Highly Compensated Participant's Deferred
Compensation for the year (or at the end of the prior Plan Year if the prior
year testing method is being used) bears to the total Deferred Compensation of
all such Non-Highly Compensated Participants for such year.

       

      (3)   A
special Qualified Non-Elective Contribution may be made on behalf of Non-Highly
Compensated Participants in an amount sufficient to satisfy (or to prevent an
anticipated failure of) one of the tests set forth in Section 4.7. Such
contribution shall be allocated in equal amounts (per capita).

       

      (4)   A
special Qualified Non-Elective Contribution may be made on behalf of Non-Highly
Compensated Participants electing salary reductions pursuant to Section 4.2 in
an amount sufficient to satisfy (or to prevent an anticipated failure of) one of
the tests set forth in Section 4.7. Such contribution shall be allocated for the
year (or at the end of the prior Plan Year if the prior year testing method is
used) to each Non-Highly Compensated Participant electing salary reductions
pursuant to Section 4.2 in equal amounts (per capita).

       

      (5)   A
special Qualified Non-Elective Contribution may be made on behalf of Non-Highly
Compensated Participants in an amount sufficient to satisfy (or to prevent an
anticipated failure of) one of the tests set forth in Section 4.7. Such
contribution shall be allocated to the Non-Highly Compensated Participant having
the lowest 414(s) Compensation, until one of the tests set forth in Section 4.7
is satisfied (or is anticipated to be satisfied), or until such Non-Highly
Compensated Participant has received the maximum "annual addition" pursuant to
Section 4.9. This process shall continue until one of the tests set forth in
Section 4.7 is satisfied (or is anticipated to be satisfied).

       

      Notwithstanding
the above, at the Employer's discretion, Non-Highly Compensated Participants who
are not employed at the end of the Plan Year (or at the end of the prior Plan
Year if the prior year testing method is being used) shall not be eligible to
receive a special Qualified Non-Elective Contribution and shall be
disregarded.

       

      Notwithstanding
the above, for Plan Years beginning after December 31, 1998, if the testing
method changes from the current year testing method to the prior year testing
method, then for purposes of preventing the double counting of Qualified
Non-Elective Contributions for the first testing year for which the change is
effective, any special Qualified Non-Elective Contribution on behalf of
Non-Highly Compensated Participants used to satisfy the
"Actual Deferral Percentage" or "Actual Contribution Percentage" test under the
current year testing method for the prior year testing year shall be
disregarded.

       

      (g) Any
Excess Aggregate Contributions (and Income) which are distributed
on or after 2 1/2 months after the end of the Plan Year shall be subject to the
ten percent (10%) Employer excise tax imposed by Code Section 4979.

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

      
        	
                4.9

              	
                MAXIMUM
      ANNUAL ADDITIONS

              

      

       

      (a)          Notwithstanding
the foregoing, for "limitation year" beginning after
December 31, 1994, the maximum "annual additions" credited to a Participant's
accounts for any "limitation year" shall equal the lesser of (1) $30,000
adjusted annually as provided in Code Section 415(d) pursuant to the
Regulations, or (2) twenty-five percent (25%) of the Participant's "415
Compensation" for such "limitation year." If the Employer contribution that
would otherwise be contributed or allocated to the Participant's accounts would
cause the "annual additions" for the "limitation year" to exceed the maximum
"annual additions," the amount contributed or allocated will be reduced so that
the "annual additions" for the "limitation year" will equal the maximum "annual
additions," and any amount in excess of the maximum "annual additions," which
would have been allocated to such Participant may be allocated to other
Participants. For any short "limitation year," the dollar limitation in (1)
above shall be reduced by a fraction, the numerator of which is the number of
full months in the short "limitation year" and the denominator of which is
twelve (12).

       

      (b)          For
purposes of applying the limitations of Code Section 415, "annual
additions" means the sum credited to a Participant's accounts for any
"limitation year" of (1) Employer contributions, (2) Employee contributions, (3)
forfeitures, (4) amounts allocated, after March 31, 1984, to an individual
medical account, as defined in Code Section 415(1)(2) which is part of a pension
or annuity plan maintained by the Employer and (5) amounts derived from
contributions paid or accrued after December 31, 1985, in taxable years ending
after such date, which are attributable to post-retirement medical benefits
allocated to the separate account of a key employee (as defined in Code Section
419A(d)(3)) under a welfare benefit plan (as defined in Code Section 419(e))
maintained by the Employer. Except, however, the "415 Compensation" percentage
limitation referred to in paragraph (a)(2) above shall not apply to: (1) any
contribution for medical benefits (within the meaning of Code Section
419A(f)(2)) after separation from service which is otherwise treated as an
"annual addition," or (2) any amount otherwise treated as an "annual addition"
under Code Section 415(1)(1).

       

      (c)          For
purposes of applying the limitations of Code Section 415, the transfer
of funds from one qualified plan to another is not an "annual addition." In
addition, the following are not Employee contributions for the purposes of
Section 4.9(b): (1) rollover contributions (as defined in Code Sections
402(a)(5), 403(a)(4), 403(b)(8) and 408(d)(3)); (2) repayments of loans made to
a Participant from the Plan; (3) repayments of distributions received by an
Employee pursuant to Code Section 411(a)(7)(B) (cash-outs); (4) repayments of
distributions received by an
Employee pursuant to Code Section 411(a)(3)(D) (mandatory contributions); and
(5) Employee contributions to a simplified employee pension excludable from
gross income under Code Section 408(k)(6).

       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

      (d)           For
purposes of applying the limitations of Code Section 415, the "limitation year"
shall be the Plan Year.

       

      (e)           For
the purpose of this Section, all qualified defined contribution plans (whether
terminated or not) ever maintained by the Employer shall be treated as one
defined contribution plan.

       

      (f)           For
the purpose of this Section, if the Employer is a member of a controlled group
of corporations, trades or businesses under common control (as defined by Code
Section 1563(a) or Code Section 414(b) and (c) as modified by Code Section
415(h)), is a member of an affiliated service group (as defined by Code Section
414(m)), or is a member of a group of entities required to be aggregated
pursuant to Regulations under Code Section 414(o), all Employees of such
Employers shall be considered to be employed by a single Employer.

       

      (g)           For
the purpose of this Section, if this Plan is a Code Section
413(c) plan, each Employer who maintains this Plan will be considered to be a
separate Employer.

       

      (h)(1)    
 If a Participant participates in more than one defined contribution plan
maintained by the Employer which have different Anniversary Dates, the maximum
"annual additions" under this Plan shall equal the maximum "annual additions"
for the "limitation year" minus any "annual additions" previously credited to
such Participant's accounts during the "limitation year."

       

      (2)           If
a Participant participates in both a defined contribution plan subject to Code
Section 412 and a defined contribution plan not subject to Code Section 412
maintained by the Employer which have the same Anniversary Date, "annual
additions" will be credited to the Participant's accounts under the defined
contribution plan subject to Code Section 412 prior to crediting "annual
additions" to the Participant's accounts under the defined contribution plan not
subject to Code Section 412.

       

      (3)           If
a Participant participates in more than one defined contribution plan not
subject to Code Section 412 maintained by the Employer which have the same
Anniversary Date, the maximum "annual additions" under this Plan shall equal the
product of (A) the maximum "annual additions" for the "limitation year" minus
any "annual additions" previously credited under subparagraphs (1) or (2) above,
multiplied by (B) a fraction (i) the numerator of which is the "annual
additions" which would be credited to such Participant's accounts under this
Plan without regard to the limitations of Code Section 415 and (ii) the
denominator of which is such "annual additions" for all plans described in this
subparagraph.

       

      (i)
Notwithstanding anything contained in this Section to the contrary, the
limitations, adjustments and other requirements prescribed in this Section shall
at all times comply with the provisions of Code Section 415 and the Regulations
thereunder.

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

      
        	
                4.10

              	
                ADJUSTMENT
      FOR EXCESSIVE ANNUAL ADDITIONS

              

      

       

      (a) If;
as a result of the allocation of Forfeitures, a reasonable error in estimating
a Participant's Compensation, a reasonable error in determining the amount of
elective deferrals (within the meaning of Code Section 402(g)(3)) that may be
made with respect to any Participant under the limits of Section 4.9 or other
facts and circumstances to which Regulation 1.415-6(b)(6) shall be applicable,
the "annual additions" under this Plan would cause the maximum "annual
additions" to be exceeded for any Participant, the "excess amount" will be
disposed of in one of the following manners, as uniformly determined by the
Administrator for all Participants similarly situated.

       

      (1)           Any
unmatched Deferred Compensation and, thereafter, proportionately from Deferred
Compensation which is matched and matching contributions which relate to such
Deferred Compensation, will be reduced to the extent they would reduce the
"excess amount." The Deferred Compensation (and for "limitation years" beginning
after December 31, 1995, any gains attributable to such Deferred Compensation)
will be distributed to the Participant and the Employer matching contributions
(and for "limitation years" beginning after December 31, 1995, any gains
attributable to such matching contributions) will be used to reduce the Employer
contribution in the next "limitation year";

       

      (2)           If,
after the application of subparagraph (1) above, an "excess amount" still
exists, and the Participant is covered by the Plan at the end of the "limitation
year," the "excess amount" will be used to reduce the Employer contribution
(including allocation of any Forfeitures) for such Participant in the next
"limitation year," and each succeeding "limitation year" if
necessary;

       

      (3)           If,
after the application of subparagraph (1) above, an "excess amount" still
exists, and the Participant is not covered by the Plan at the end of the
"limitation year," the "excess amount" will be held unallocated in a "Section
415 suspense account." The "Section 415 suspense account" will be applied to
reduce future Employer contributions (including allocation of any Forfeitures)
for all remaining Participants in the next "limitation year," and each
succeeding "limitation year" if necessary;

       

      (4)           If
a "Section 415 suspense account" is in existence at any time during the
"limitation year" pursuant to this Section, it will not participate in the
allocation of investment gains and losses of the Trust Fund. If a "Section 415
suspense account" is in existence at any time during a particular "limitation
year," all amounts in the "Section 415 suspense account"
must be allocated and reallocated to Participants' accounts before any Employer
contributions or any Employee contributions may be made to the Plan for that
"limitation year." Except as provided in (1) above, "excess amounts" may not be
distributed to Participants or Former Participants.

       

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

      (b)            For
purposes of this Article, "excess amount" for any Participant for a "limitation
year" shall mean the excess, if any, of (1) the "annual additions" which would
be credited to the Participant's account under the terms of the Plan without
regard to the limitations of Code Section 415 over (2) the maximum "annual
additions" determined pursuant to Section 4.9.

       

      (c)            For
purposes of this Section, "Section 415 suspense account" shall mean an
unallocated account equal to the sum of "excess amounts" for all Participants in
the Plan during the "limitation year."

       

      
        	
                4.11

              	
                ROLLOVERS
      AND PLAN-TO-PLAN TRANSFERS FROM QUALIFIED
PLANS

              

      

       

      (a)           With
the consent of the Administrator, amounts may be transferred (within the meaning
of Code Section 414(1)) to this Plan from other tax qualified plans under Code
Section 401(a) by Eligible Employees, provided that the trust from which such
funds are transferred permits the transfer to be made and the transfer will not
jeopardize the tax exempt status of the Plan or Trust or create adverse tax
consequences for the Employer. Prior to accepting any transfers to which this
Section applies, the Administrator may require an opinion of counsel that the
amounts to be transferred meet the requirements of this Section. The amounts
transferred shall be set up in a separate account herein referred to as a
Participant's Transfer/Rollover Account. Furthermore, for vesting purposes, the
Participant's portion of the Participant's Transfer/Rollover Account
attributable to any transfer shall be subject to Section 7.4(b).

       

      Except as
permitted by Regulations (including Regulation 1.411(d)-4), amounts attributable
to elective contributions (as defined in Regulation 1.401(k)-1(g)(3)), including
amounts treated as elective contributions, which are transferred from another
qualified plan in a plan-to-plan transfer (other than a direct rollover) shall
be subject to the distribution limitations provided for in Regulation
1.401(k)-1(d).

       

      (b)           With
the consent of the Administrator, the Plan may accept a "rollover"
by Eligible Employees, provided the "rollover" will not jeopardize the tax
exempt status of the Plan or create adverse tax consequences for the Employer.
Prior to accepting any "rollovers" to which this Section applies, the
Administrator may require the Employee to establish (by providing opinion of
counsel or otherwise) that the amounts to be rolled over to this Plan meet the
requirements of this Section. The amounts rolled over shall be set up in a
separate account herein referred to as a "Participant's Transfer/Rollover
Account." Such account shall be fully Vested at all times and shall not be
subject to Forfeiture for any reason.

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

      For
purposes of this Section, the term "qualified plan" shall mean any tax qualified
plan under Code Section 401(a), or, any other plans from which distributions are
eligible to be rolled over into this Plan pursuant to the Code. The term
"rollover" means: (i) amounts transferred to this Plan directly from another
qualified plan; (ii) distributions received by an Employee from other "qualified
plans" which are eligible for tax-free rollover to a "qualified plan" and which
are transferred by the Employee to this Plan within sixty (60) days following
receipt thereof; (iii) amounts transferred to this Plan from a conduit
individual retirement account provided that the conduit individual retirement
account has no assets other than assets which (A) were previously distributed to
the Employee by another "qualified plan" (B) were eligible for tax-free rollover
to a "qualified plan" and (C) were deposited in such conduit individual
retirement account within sixty (60) days of receipt thereof; (iv) amounts
distributed to the Employee from a conduit individual retirement account meeting
the requirements of clause (iii)
above, and transferred by the Employee to this Plan within sixty (60) days of
receipt thereof from such conduit individual retirement account; and (v) any
other amounts which are eligible to be rolled over to this Plan pursuant to the
Code.

       

      (c)           Amounts
in a Participant's Transfer/Rollover Account shall be held by the Trustee
pursuant to the provisions of this Plan and may not be withdrawn by, or
distributed to the Participant, in whole or in part, except as provided in
paragraph (d) of this Section. The Trustee shall have no duty or responsibility
to inquire as to the propriety of the amount, value or type of assets
transferred, nor to conduct any due diligence with respect to such assets;
provided, however, that such assets are otherwise eligible to be held by the
Trustee under the terms of this Plan.

       

      (d)           The
Administrator, at the election of the Participant, shall direct the Trustee to
distribute all or a portion of the amount credited to the Participant's
Transfer/Rollover Account. Any distributions of amounts held in a Participant's
Transfer/Rollover Account shall be made in a manner which is consistent with and
satisfies the provisions of Section 7.5, including, but not limited to, all
notice and consent requirements of Code Section 411(a)(11) and the Regulations
thereunder. Furthermore, such amounts shall be considered as part of a
Participant's benefit in determining whether an involuntary cash-out of benefits
may be made without Participant consent.

       

      (e)           The
Administrator may direct that Employee transfers and rollovers
made after a Valuation Date be segregated into a separate account for each
Participant until such time as the allocations pursuant to this Plan have been
made, at which time they may remain segregated or be invested as part of the
general Trust Fund or be directed by the Participant pursuant to Section
4.12.

       

      (f) This
Plan shall not accept any direct or indirect transfers (as that term is
defined and interpreted under Code Section 401(a)(11) and the Regulations
thereunder) from a defined benefit plan, money purchase plan (including a target
benefit plan), stock bonus or profit sharing plan which would otherwise have
provided for a life annuity form of payment to the Participant.

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

      (g)
Notwithstanding anything herein to the contrary, a transfer directly
to this
Plan from another qualified plan (or a transaction having the effect of such a
transfer) shall only be permitted if it will not result in the elimination or
reduction of any "Section 411(d)(6) protected benefit" as described in Section
8.1.

       

      
        	
                4.12

              	
                DIRECTED
      INVESTMENT ACCOUNT

              

      

       

      (a)   
Participants may, subject to Section 4.12(d) and a procedure established
by the Administrator (the Participant Direction Procedures) and applied in a
uniform nondiscriminatory manner, direct the Trustee, in writing (or in such
other form which is acceptable to the Trustee), to invest all or a portion of
their individual account balances in specific assets, specific funds or
other-
investments permitted under the Plan and the Participant Direction
Procedures. That portion of the interest of any Participant so directing will
thereupon be considered a Participant's Directed Account.

       

      (b)   
As of each Valuation Date, all Participant Directed Accounts shall be
charged or credited with the net earnings, gains, losses and expenses as well as
any appreciation or depreciation in the market value using publicly listed fair
market values when available or appropriate as follows:

       

      (1)    to
the extent that the assets in a Participant's Directed Account are accounted for
as pooled assets or investments, the allocation of earnings, gains and losses of
each Participant's Directed Account shall be based upon the total amount of
funds so invested in a manner proportionate to the Participant's share of such
pooled investment; and

       

      (2)    to
the extent that the assets in the Participant's Directed Account are accounted
for as segregated assets, the allocation of earnings, gains and losses from such
assets shall be made on a separate and distinct basis.

       

      (c)   
Investment directions will be processed as soon as administratively practicable
after proper investment directions are received from the Participant. No
guarantee is made by the Plan, Employer, Administrator or Trustee that
investment directions will be processed on a daily basis, and no guarantee is
made in any respect regarding the processing time of an investment direction.
Notwithstanding any other provision of the Plan, the Employer, Administrator or
Trustee reserves the right to not value an investment option on any given
Valuation
Date for any reason deemed appropriate by the Employer, Administrator or
Trustee. Furthermore, the processing of any investment transaction may be
delayed for any legitimate business reason (including, but not limited to,
failure of systems or computer programs, failure of the means of the
transmission of data, force majeure, the failure of a service provider to timely
receive values or prices, and correction for errors or omissions or the errors
or omissions of any service provider). The processing date of a transaction will
be binding for all purposes of the Plan and considered the applicable Valuation
Date for an investment transaction.

       

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

      (d)    Each
"Qualified Participant" may elect within ninety (90) days after the close of
each Plan Year during the "Qualified Election Period" to direct the Trustee in
writing as to the investment of 25 percent of the total number of shares of
Company Stock acquired by or contributed to the Plan that have ever been
allocated to such "Qualified Participant's" Company Stock Account (reduced by
the number of shares of Company Stock previously invested pursuant to a prior
election). In the case of the election year in which the last election can be
made by the Participant, the preceding sentence shall be applied by substituting
"50 percent" for "25 percent." If the "Qualified Participant" elects to direct
the Trustee as to the investment of the Participant's Company Stock Account,
such direction shall be effective no later than 180 days after the close of the
Plan Year to which such direction applies. In lieu of directing the Trustee as
to the investment of the Participant's Company Stock Account, the "Qualified
Participant" may elect a distribution in cash or Company Stock of the portion of
the Participant's Company Stock Account covered by the election within ninety
(90) days after the last day of the period during which the election can be
made. Any such distribution of Company Stock shall be subject to Section 7.11.
Furthermore, the Participant must be given a choice of at least three distinct
investment options.

       

      Notwithstanding
the above, if the fair market value (determined pursuant to Section 6.1 at the
Plan Valuation Date immediately preceding the first day on which a "Qualified
Participant" is eligible to make an election) of Company Stock acquired by or
contributed to the Plan and allocated to a "Qualified Participant's" Company
Stock Account is $500 or less, then such Company Stock shall not be subject to
this paragraph. For purposes of determining whether the fair market value
exceeds $500, Company Stock held in accounts of all employee stock ownership
plans (as defined in Code Section
4975(e)(7)) and tax credit employee stock ownership plans (as defined in Code
Section 409(a)) maintained by the Employer or any Affiliated Employer shall be
considered as
held by the Plan.

       

      (e)     For
the purposes of this Section the following definitions shall apply:

       

      (1)     "Qualified
Participant" means any Participant or Former Participant
who has completed ten (10) Years of Service as a Participant and has attained
age 55.

       

      (2)     "Qualified
Election Period" means the six (6) Plan Year period beginning
with the later of (i) the first Plan Year in which the Participant first became
a "Qualified Participant," or (ii) the first Plan Year beginning after December
31, 1986.

       

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      

      
        	
                4.13

              	
                QUALIFIED
      MILITARY SERVICE

              

      

       

      Notwithstanding
any provision of this Plan to the contrary, effective December 12, 1994,
contributions, benefits and service will be provided in accordance with Code
Section 414(u).

       

      ARTICLE
V

      FUNDING
AND INVESTMENT POLICY

       

      
        	
                5.1

              	
                INVESTMENT
      POLICY

              

      

       

      (a)      The
Plan is designed to invest primarily in Company Stock.

       

      (b)     With
due regard to subparagraph (a) above, the Administrator may also direct the
Trustee to invest funds under the Plan in other property described in the Trust
or in life insurance policies to the extent permitted by subparagraph (c) below,
or the Trustee may hold such funds in cash or cash equivalents.

       

      (c)     With
due regard to subparagraph (a) above, the Administrator may also direct the
Trustee to invest funds under the Plan in insurance policies on the life of any
"keyman" Employee. The proceeds of a "keyman" insurance policy may not be used
for the repayment of any indebtedness owed by the Plan which is secured by
Company Stock. In the event any "keyman" insurance is purchased by the Trustee,
the premiums paid thereon during any Plan Year, net of any policy dividends and
increases in cash surrender values, shall be treated as the cost of Plan
investment and any death benefit or cash surrender value received shall be
treated as proceeds from an investment of the Plan.

       

      (d)    The
Plan may not obligate itself to acquire Company Stock from a particular holder
thereof at an indefinite time determined upon the happening of an event such as
the death of the holder.

       

      (e)    The
Plan may not obligate itself to acquire Company Stock under a put option binding
upon the Plan. However, at the time a put option is exercised, the Plan may be
given an option to assume the rights and obligations of the Employer under a put
option binding upon the Employer.

       

      (f)    All
purchases of Company Stock shall be made at a price which, in the judgment of
the Administrator, does not exceed the fair market value thereof. All sales of
Company Stock shall be made at a price which, in the judgment of the
Administrator, is not less than the fair market value thereof. The valuation
rules set forth in Article VI shall be applicable.

       

      
        	
                5.2

              	
                TRANSACTIONS
      INVOLVING COMPANY STOCK

              

      

       

      (a) 
 No portion of the Trust Fund attributable to (or allocable in lieu of)
Company
Stock acquired by the Plan in a sale to which Code Section 1042 applies may
accrue or be allocated directly or indirectly under any plan maintained by the
Employer meeting the requirements of Code Section 401(a):

       

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

      (1) 
during the "Nonallocation Period," for the benefit of

       

      (i)   any
taxpayer who makes an election under Code Section 1042(a) with respect to
Company Stock,

       

      (ii)  any
individual who is related to the taxpayer (within the meaning of Code Section
267(b)), or

       

      (2) 
for the benefit of any other person who owns (after application of Code
Section 318(a) applied without regard to the employee trust exception in Code
Section 318(a)(2)(B)(i)) more than 25 percent of

       

      (i)   any
class of outstanding stock of the Employer or Affiliated Employer which issued
such Company Stock, or

       

      (ii)  the
total value of any class of outstanding stock of the Employer or Affiliated
Employer.

       

      (b)
 Except, however, subparagraph (a)(1)(ii) above shall not apply to
lineal
descendants of the taxpayer, provided that the aggregate amount allocated to the
benefit of all such lineal descendants during the "Nonallocation Period" does
not exceed more than five (5) percent of the Company Stock (or amounts allocated
in lieu thereof) held by the Plan which are attributable to a sale to the Plan
by any person related to such descendants (within the meaning of Code Section
267(c)(4)) in a transaction to which Code Section 1042 is applied.

       

      (c) 
A person shall be treated as failing to meet the stock ownership limitation
under paragraph (a)(2) above if such person fails such limitation:

       

      (1)  at
any time during the one (1) year period ending on the date of sale of
Company Stock to the Plan, or

       

      (2)  on
the date as of which Company Stock is allocated to Participants in the
Plan.

       

      (d)
 For purposes of this Section, "Nonallocation Period" means the
period
beginning on the date of the sale of the Company Stock and ending on the date
which is ten (10) years after the date of sale.

       

      ARTICLE
VI

      VALUATIONS

       

      
        	
                6.1

              	
                VALUATION
      OF THE TRUST FUND

              

      

       

      The
Administrator shall direct the Trustee, as of each Valuation Date, to determine
the net worth of the assets comprising the Trust Fund as it exists on the
Valuation Date. In determining such net worth, the Trustee shall value the
assets comprising the Trust Fund at their fair market value (or their
contractual value in the case of a Contract or Policy) as of the Valuation
Date and shall deduct all expenses for which the Trustee has not yet obtained
reimbursement from the Employer or the Trust Fund. The Trustee may update the
value of any shares held in the Participant Directed Account by reference to the
number of shares held by that Participant, priced at the market value as of the
Valuation Date.

       

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

      
        	
                6.2

              	
                METHOD
      OF VALUATION

              

      

       

      Valuations
must be made in good faith and based on all relevant factors for determining the
fair market value of securities. In the case of a transaction between a Plan and
a disqualified person, value must be determined as of the date of the
transaction. For all other Plan purposes, value must be determined as of the
most recent Valuation Date under the Plan. An independent appraisal will not in
itself be a good faith determination of value in the case of a transaction
between the Plan and a disqualified person. However, in other cases, a
determination of fair market value based on at least an annual appraisal
independently arrived at by a person who customarily makes such appraisals and
who is independent of any party to the transaction will be deemed to be a good
faith determination of value. Company Stock not readily tradeable on an
established securities market shall be valued by an independent appraiser
meeting requirements similar to the requirements of the Regulations prescribed
under Code Section
170(a)(1).

       

      ARTICLE
VII

      DETERMINATION
AND DISTRIBUTION OF BENEFITS

       

      
        	
                7.1

              	
                DETERMINATION
      OF BENEFITS UPON RETIREMENT

              

      

       

      Every
Participant may terminate employment with the Employer and retire for the
purposes hereof on the Participant's Normal Retirement Date or Early Retirement
Date. However, a Participant may postpone the termination of employment with the
Employer to a later date, in which event the participation of such Participant
in the Plan, including the right to receive allocations pursuant to Section 4.4,
shall continue until such Participant's Late Retirement Date. Upon a
Participant's Retirement Date or attainment of Normal Retirement Date
without
termination of employment with the Employer, or as soon thereafter as is
practicable, the Trustee shall distribute, at the election of the Participant,
all amounts credited to such Participant's Combined Account in accordance with
Sections 7.5 and 7.6.

       

      
        	
                7.2

              	
                DETERMINATION
      OF BENEFITS UPON DEATH

              

      

       

      (a)    Upon
the death of a Participant before the Participant's Retirement Date or other
termination of employment, all amounts credited to such Participant's Combined
Account shall become fully Vested. If elected, distribution of the Participant's
Combined Account shall commence not later than one (1) year after the close of
the Plan Year in which such Participant's death occurs. The Administrator shall
direct the Trustee, in accordance with the provisions of Sections 7.5 and 7.6,
to distribute the value of the deceased Participant's, accounts to the
Participant's Beneficiary.

       

      (b)    Upon
the death of a Former Participant, the Administrator shall direct the Trustee,
in accordance with the provisions of Sections 7.5 and 7.6, to distribute
any remaining Vested amounts credited to the accounts of a deceased Former
Participant to such Former Participant's Beneficiary.

       

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

      (c)   
Any security interest held by the Plan by reason of an outstanding loan to
the Participant or Former Participant shall be taken into account in determining
the amount of the death benefit.

       

      (d)   
The Administrator may require such proper proof of death and such
evidence of the right of any person to receive payment of the value of the
account of a deceased Participant or Former Participant as the Administrator may
deem desirable. The Administrator's determination of death and of the right of
any person to receive payment shall be conclusive.

       

      (e)   
The Beneficiary of the death benefit payable pursuant to this Section
shall be the Participant's spouse. Except, however, the Participant may
designate a Beneficiary other than the spouse if:

       

      (1)   the
spouse has waived the right to be the Participant's Beneficiary,
Or

       

      (2)   the
Participant is legally separated or has been abandoned (within the meaning of
local law) and the Participant has a court order to such effect (and there is no
"qualified domestic relations order" as defined in Code Section 414(p) which
provides otherwise), or

       

      (3)   the
Participant has no spouse, or

       

      (4)   the
spouse cannot be located.

       

      In such
event, the designation of a Beneficiary shall be made on a form satisfactory to
the Administrator. A Participant may at any time revoke a designation of a
Beneficiary or change a Beneficiary by filing written (or in such other form as
permitted by the Internal Revenue Service) notice of such revocation or change
with the Administrator. However, the Participant's spouse must again consent in
writing (or in such other form as permitted by the Internal Revenue Service) to
any change in Beneficiary unless the original consent acknowledged that the
spouse had the right to limit consent only to a specific Beneficiary and that
the spouse voluntarily elected to relinquish such right.

       

      (f)   
In the event no valid designation of Beneficiary exists, or if the Beneficiary
is not alive at the time of the Participant's death, the death benefit will be
paid in the following order of priority to:

       

      (1)    the
Participant's surviving spouse; or

       

      (2)    the
Participant's estate.

       

      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

      If the
Beneficiary does not predecease the Participant, but dies prior to distribution
of the death benefit, the death benefit will be paid to the Beneficiary's
estate.

       

      (g)   
Any consent by the Participant's spouse to waive any rights to the death
benefit must be in writing (or in such other form as permitted by the Internal
Revenue Service), must acknowledge the effect of such waiver, and be witnessed
by a Plan representative or a notary public. Further, the spouse's consent must
be irrevocable and must acknowledge the specific nonspouse
Beneficiary.

       

      
        	
                7.3

              	
                DETERMINATION
      OF BENEFITS IN EVENT OF DISABILITY

              

      

       

      In the
event of a Participant's Total and Permanent Disability prior to the
Participant's
Retirement Date or other termination of employment, all amounts credited to such
Participant's
Combined Account shall become fully Vested. In the event of a Participant's
Total and
Permanent Disability, the Administrator, in accordance with the provisions of
Sections 7.5 and 7.6,
shall direct the distribution to such Participant of all Vested amounts credited
to such Participant's Combined Account. If such Participant elects, distribution
shall commence not later than one
(1) year after the close of the Plan Year in which Total and Permanent
Disability Occurs.

       

      
        	
                7.4

              	
                DETERMINATION
      OF BENEFITS UPON TERMINATION

              

      

       

      (a)    If
a Participant's employment with the Employer is terminated for any
reason other than death, Total and Permanent Disability or retirement, then such
Participant shall be entitled to such benefits as are provided hereinafter
pursuant to this Section 7.4.

       

      
        If a
portion of a Participant's Account is forfeited, Company Stock allocated to the
Participant's Company Stock Account must be forfeited only after the
Participant's Other Investments Account has been depleted. If interest in more
than one class of Company Stock has been allocated to a Participant's Account,
the
Participant must be treated as forfeiting the same proportion of each such
class.

      

      
        
           

          Distribution
of the funds due to a Terminated Participant shall be made on the occurrence of
an event which would result in the distribution had the Terminated Participant
remained in the employ of the Employer (upon the Participant's death, Total and
Permanent Disability, Early or Normal Retirement). However, at the election of
the Participant, the Administrator shall direct the Trustee that the entire
Vested portion of the Terminated Participant's Combined Account to be payable to
such Terminated Participant. Any distribution under this paragraph shall be made
in a manner which is consistent with and satisfies the provisions of Section 7.5
and 7.6, including, but not limited to, all notice and consent requirements of
Code Section 411(a)(11) and the Regulations thereunder.

           

          (b)           The
Vested portion of any Participant's Account shall be a percentage
of the total amount credited to the Participant's Account determined on
the basis
of the Participant's number of Years of Service according to the following
schedule:

           

          
            
              
              

            

            
              51

              
                

              

            

            
              
              

            

          

          
            
              
                
                  	
                          Vesting
      Schedule

                        
	
                          Years
      of Service

                        	
                          Percentage

                        
	
                          1

                        	
                          20%

                        
	
                          2

                        	
                          40%

                        
	
                          3

                        	
                          60%

                        
	
                          4

                        	
                          80%

                        
	
                          5

                        	
                          100%

                        

                

              

            

          

           

          (c)
Notwithstanding the vesting schedule above, the Vested percentage of a
Participant's Account shall not be less than the Vested percentage attained as
of the later of the effective date or adoption date of this amendment and
restatement.

           

          (d)
Notwithstanding the vesting schedule above, upon the complete discontinuance
of the Employer contributions to the Plan or upon any full or partial
termination of the Plan, all amounts then credited to the account of any
affected Participant shall become 100% Vested and shall not thereafter be
subject to Forfeiture. Effective May 11, 2001, employees who terminated
employment pursuant to the sale of the Bank's Barnwell branches to Enterprise
Bank on May 11, 2001, shall be 100% Vested and all amounts then credited to the
account of any affected Participant shall not thereafter be subject to
Forfeiture.

           

          (e) The
computation of a Participant's nonforfeitable percentage of such
Participant's interest in the Plan shall not be reduced as the result of any
direct or indirect amendment to this Plan. In the event that the Plan is amended
to change or modify any vesting schedule, or if the Plan is amended in any way
that directly or indirectly affects the computation of the Participant's
nonforfeitable percentage, or if the Plan is deemed amended by an automatic
change to a top heavy vesting schedule then each Participant with at least three
(3) Years of Service as of the expiration date of the election period may elect
to have such Participant's nonforfeitable percentage computed under the Plan
without regard to such amendment or change. If a Participant fails to make such
election, then such Participant shall be subject to the new vesting schedule.
The Participant's election period shall commence on the adoption date of the
amendment and shall end sixty (60) days after the latest of:

           

          (1)  the
adoption date of the amendment,

           

          (2)  the
effective date of the amendment, or

           

          (3)  the
date the Participant receives written notice of the amendment from the
Employer or Administrator.

           

          (f) Upon
a Change of Control, a Participant will be 100% vested in his Account.
A Change of Control shall be defined as a Buyout, Merger, or Substantial Change
of Ownership.

           

          
            
              
              

            

            
              52

              
                

              

            

            
              
              

            

          

          
            	
                    7.5

                  	
                    DISTRIBUTION
      OF BENEFITS

                  

          

           

          (a) The
Administrator, pursuant to the election of the Participant, shall direct
the Trustee to distribute to a Participant or such Participant's Beneficiary any
amount to which the Participant is entitled under the Plan in one or more of the
following methods:

           

          (1)  One
lump-sum payment.

           

          (2)  Payments
over a period certain in monthly, quarterly, semiannual, or annual installments.
The period over which such payment is to be made shall not extend beyond the
earlier of the Participant's life expectancy (or the life expectancy of the
Participant and the Participant's designated Beneficiary) or the limited
distribution period provided for in Section 7.5(b).

           

          (b)
Unless the Participant elects in writing (or such other form as permitted
by the Internal Revenue Service) a longer distribution period, distributions to
a Participant or the Participant's Beneficiary attributable to Company Stock
shall be in substantially equal monthly, quarterly, semiannual, or annual
installments over a period not longer than five (5) years. In the case of a
Participant with an account balance attributable to Company Stock in excess of
$500,000, the five (5) year period shall be extended one (1) additional year
(but not more than five (5) additional years) for each $100,000 or fraction
thereof by which such balance exceeds $500,000. The dollar limits shall be
adjusted at the same time and in the same manner as provided in Code Section
415(d).

           

          (c) Any
distribution to a Participant, for Plan Years beginning after August 5,
1997, who has a benefit which exceeds $5,000 ($3,500 for Plan Years beginning
prior to August 6, 1997) or, if the distribution is made prior to March 22,
1999, has ever exceeded $5,000 ($3,500 for Plan Years beginning prior to August
6, 1997) at the time of any prior distribution, shall require such Participant's
written (or in such other form as permitted by the Internal Revenue Service)
consent pursuant to this Section if such distribution commences prior to the
time the benefit is "immediately distributable." A benefit is "immediately
distributable" if any part of the benefit could be distributed to the
Participant (or surviving spouse) before the Participant attains (or would have
attained if not deceased) the later of the Participant's Normal Retirement Age
or age 62. With regard to this required consent:

           

          (1) The
Participant must be informed of the right to defer receipt of the distribution.
If a Participant fails to consent, it shall be deemed an election to defer the
commencement of payment of any benefit. However, any election to defer the
receipt of benefits shall not apply with respect to distributions which are
required under Section 7.5(f).

           

          (2)  Notice
of the rights specified under this paragraph shall be provided no less than
thirty (30) days and no more than ninety (90) days before the date the
distribution commences.

           

          
            
              
              

            

            
              53

              
                

              

            

            
              
              

            

          

          (3)  Written
(or such other form as permitted by the Internal Revenue Service) consent of the
Participant to the distribution must not be made before the Participant receives
the notice and must not be made more than ninety (90) days before the date the
distribution commences.

           

          (4)  No
consent shall be valid if a significant detriment is imposed under the Plan on
any Participant who does not consent to the distribution.

           

          Any such
distribution may commence less than thirty (30) days after the notice required
under Regulation 1.411(a)-11(c) is given, provided that: (1) the Administrator
clearly informs the Participant that the Participant has a right to a period of
at least thirty (30) days after receiving the notice to consider the decision of
whether or not to elect a distribution (and, if applicable, a particular
distribution option), and (2) the Participant, after receiving the notice,
affirmatively elects a distribution.

           

          (d)  Notwithstanding
anything herein to the contrary, the Administrator, subject to the election of
the Participant or Beneficiary pursuant to Section 4.4(c), may direct that cash
dividends on shares of Company Stock allocable to Participants' or Former
Participants' Company Stock Accounts be distributed to such Participants or
Former Participants within ninety (90) days after the close of the Plan Year in
which the dividends are paid.

           

          (e)   Any
part of a Participant's benefit which is retained in the Plan after the
Anniversary Date on which the Participant's participation ends will continue to
be treated as a Company Stock Account or as an Other Investments Account
(subject to Section 7.4(a)) as provided in Article IV. However, neither account
will be credited with any further Employer contributions or
Forfeitures.

           

          (f)    Notwithstanding
any provision in the Plan to the contrary, the distribution of a Participant's
benefits made on or after January 1, 1997 shall be made in accordance with the
following requirements and shall otherwise comply with Code Section 401(a)(9)
and the Regulations thereunder (including Regulation 1.401(a)(9)-2), the
provisions of which are incorporated herein by reference:

           

          (1) 
A Participant's benefits shall be distributed or must begin to be distributed
not later than April 1st of the calendar year following the later of (i) the
calendar year in which the Participant attains age 70 1/2 or (ii) the calendar
year in which the Participant retires, provided, however, that thisclause
(ii) shall not apply in the case of a Participant who is a "five (5) percent
owner" at any time during the Plan Year ending with or within the calendar year
in which such owner attains age 70 1/2. Such distributions shall be equal to or
greater than any required distribution.

           

          
            
              
              

            

            
              54

              
                

              

            

            
              
              

            

          

          Any
Participant attaining age 70 1/2 in years after 1995 may elect by the April 1st
of the calendar year following the year in which the Participant attained age 70
1/2 (or by December 31, 1997 in the case of a Participant attaining age 70 1/2
in 1996), to defer distributions until the calendar year following the calendar
year in which the Participant retires.

           

          Alternatively,
distributions to a Participant must begin no later than the applicable April 1st
as determined under the preceding paragraph and must be made
over a period certain measured by the life expectancy of the Participant (or the
life expectancies of the Participant and the Participant's designated
Beneficiary) in accordance with Regulations.

           

          (2) 
Distributions to a Participant and the Participant's Beneficiaries shall
only be
made in accordance with the incidental death benefit requirements of Code
Section 401(a)(9)(G) and the Regulations thereunder.

           

          With
respect to distributions under the Plan made for calendar years beginning on or
after January 1, 2002, the Plan will apply the minimum distribution requirements
of Code Section 401(a)(9) in accordance with the Regulations under Code Section
401(a)(9) that were proposed on January 17, 2001, notwithstanding any provision
of the Plan to the contrary. This amendment shall continue in effect until the
end of the last calendar year beginning before the effective date of final
Regulations under Code Section 401(a)(9) or such other date specified in
guidance published by the Internal Revenue Service.

           

          (g) 
Notwithstanding any provision in the Plan to the contrary, distributions
upon the death of a Participant shall be made in accordance with the following
requirements and shall otherwise comply with Code Section 401(a)(9) and the
Regulations thereunder. If it is determined, pursuant to Regulations, that the
distribution of a Participant's interest has begun and the Participant dies
before the entire interest has been distributed, the remaining portion of such
interest shall be distributed at least as rapidly as under the method of
distribution selected pursuant to Section 7.5 as of the date of death. If a
Participant dies before receiving any distributions of the interest in the Plan
or before distributions are deemed to have begun pursuant to Regulations, then
the death benefit shall be distributed to the Participant's Beneficiaries by
December 31st of the calendar year in which the fifth anniversary of the
Participant's date of death occurs.

           

          However,
the 5-year distribution requirement of the preceding paragraph shall not apply
to any portion of the deceased Participant's interest which is payable to or for
the benefit of a designated Beneficiary. In such event, such portion may, at the
election of the Participant (or the Participant's designated Beneficiary), be
distributed over a period not extending beyond the life expectancy of such
designated Beneficiary provided such distribution begins not later than December
31st of the calendar year immediately following the calendar year in which the
Participant died. However, in the event the Participant's spouse (determined as
of the date of the Participant's death) is the designated Beneficiary, the
requirement that distributions commence within one year of a Participant's death
shall not apply. In lieu thereof, distributions must commence on or before
the later
of: (1) December 31st of the calendar year immediately following the calendar
year in which the Participant died; or (2) December 31st of the calendar year in
which the Participant would have attained age 70 1/2. If the surviving spouse
dies before distributions to such spouse begin, then the 5-year distribution
requirement of this Section shall apply as if the spouse was the
Participant.

           

          
            
              
              

            

            
              55

              
                

              

            

            
              
              

            

          

          (h)  For
purposes of Section 7.5(g), the election by a designated

           

          Beneficiary
to be excepted from the 5-year distribution requirement must be made no later
than December 31st of the calendar year following the calendar year of the
Participant's death. Except, however, with respect to a designated Beneficiary
who is the Participant's surviving spouse, the election must be made by the
earlier of: (1) December 31st of the calendar year immediately following the
calendar year in which the Participant died or, if later, December 31st of the
calendar year in which the Participant would have attained age 70 1/2; or (2)
December 31st of the calendar yearwhich contains the fifth anniversary of the
date of the Participant's death. An election by a designated Beneficiary must be
in writing (or in such other form as permitted by the Internal Revenue Service)
and shall be irrevocable as of the last day of the election period stated
herein. In the absence of an election by the Participant or a designated
Beneficiary, the 5-year distribution requirement shall apply.

           

          (i)    For
purposes of this Section, the life expectancy of a Participant and a
Participant's spouse may, at the election of the Participant or the
Participant's spouse, be redetermined in accordance with Regulations. The
election, once made, shall be irrevocable. If no election is made by the time
distributions must commence, then the life expectancy of the Participant and the
Participant's spouse shall not be subject to recalculation. Life expectancy and
joint and last survivor expectancy shall be computed using the return multiples
in Tables V and VI of Regulation 1.72-9.

           

          (j)    Except
as limited by Sections 7.5 and 7.6, whenever the Trustee is to make a
distribution or to commence a series of payments, the distribution or series of
payments may be made or begun on such date or as soon thereafter as is
practicable. However, unless a Former Participant elects in writing to defer the
receipt of benefits (such election may not result in a death benefit that is
more than incidental), the payment of benefits shall begin not later than the
sixtieth (60th) day after the close of the Plan Year in which the latest of the
following events occurs:

           

          (1)   the
date on which the Participant attains the earlier of age 65 or the Normal
Retirement Age specified herein;

           

          (2)   the
tenth (10th) anniversary of the year in which the Participant commenced
participation in the Plan; or

           

          (3)   the
date the Participant terminates his service with the Employer.

           

          
            
              
              

            

            
              56

              
                

              

            

            
              
              

            

          

          (k)  
If a distribution is made to a Participant who has not severed employment
and who is not fully Vested in the Participant's Account and the Participant may
increase the Vested percentage in such account, then, at any relevant time the
Participant's Vested portion of the account will be equal to an amount ("X")
determined by the formula:

           

          X equals
P(AB plus D) - D

           

          For
purposes of applying the formula: P is the Vested percentage at the relevant
time, AB is the account balance at the relevant time, and D is the amount of
distribution.

           

          
            	
                    7.6

                  	
                    HOW
      PLAN BENEFIT WILL BE DISTRIBUTED

                  

          

           

          (a)   Distribution
of a Participant's benefit may be made in cash or Company Stock or both,
provided, however, that if a Participant or Beneficiary so demands, such benefit
(other than Company Stock reinvested pursuant to Section 4.12(d)) shall be
distributed only in the form of Company Stock. Prior to making a distribution of
benefits, the Administrator shall advise the Participant or the Participant's
Beneficiary, in writing (or such other form as permitted by the Internal Revenue
Service), of the right to demand that benefits be distributed solely in Company
Stock.

           

          (b)   If
a Participant or Beneficiary demands that benefits, except as provided above, be
distributed solely in Company Stock, distribution of a Participant's benefit
will be made entirely in whole shares or other units of Company Stock. Any
balance in a Participant's Other Investments Account will be applied to acquire
for distribution the maximum number of whole shares or other units of Company
Stock at the then fair market value. Any fractional unit value unexpended will
be distributed in cash. If Company Stock is not available for purchase by the
Trustee, then the Trustee shall hold such balance until Company Stock is
acquired and then make such distribution, subject to Sections 7.5(j) and
7.5(f).

           

          (c)    The
Trustee will make distribution from the Trust only on instructions
from the Administrator.

           

          (d)    Notwithstanding
anything contained herein to the contrary, if the Employer
charter or by-laws restrict ownership of substantially all shares of Company
Stock to Employees and the Trust Fund, as described in Code Section
409(h)(2)(B)(ii)(I), the Administrator shall distribute a Participant's Combined
Account entirely in cash without granting the Participant the right to demand
distribution in shares of Company Stock.

           

          (e)     Except
as otherwise provided herein, Company Stock distributed by the
Trustee may be restricted as to sale or transfer by the by-laws or articles of
incorporation of the Employer, provided restrictions are applicable to all
Company Stock of the same class. If a Participant is required to offer the sale
of Company Stock to the Employer before offering to sell Company Stock to a
third party, in
no event may the Employer pay a price less than that offered to the distributee
by another potential buyer making a bona fide offer and in no event shall the
Trustee pay a price less than the fair market value of the Company
Stock.

           

          
            
              
              

            

            
              57

              
                

              

            

            
              
              

            

          

          
            	
                    7.7

                  	
                    DISTRIBUTION
      FOR MINOR OR INCOMPETENT
BENEFICIARY

                  

          

           

          In the
event a distribution is to be made to a minor or incompetent Beneficiary, then
the Administrator may direct that such distribution be paid to the legal
guardian, or if none in the case of a minor Beneficiary, to a parent of such
Beneficiary or a responsible adult with whoin the Beneficiary maintains
residence, or to the custodian for such Beneficiary under the Uniform Gift to
Minors Act or Gift to Minors Act, if such is permitted by the laws of the state
in which said Beneficiary resides. Such a payment to the legal guardian,
custodian or parent of a minor Beneficiary shall fully discharge the Trustee,
Employer, and Plan from further liability on account thereof

           

          
            	
                    7.8

                  	
                    LOCATION
      OF PARTICIPANT OR BENEFICIARY
UNKNOWN

                  

          

           

          In the
event that all, or any portion, of the distribution payable to a Participant or
Beneficiary hereunder shall, at the later of the Participant's attainment of age
62 or Normal Retirement Age, remain unpaid solely by reason of the inability of
the Administrator, after sending a registered letter, return receipt requested,
to the last known address, and after further diligent effort, to ascertain the
whereabouts of such Participant or Beneficiary, the amount so distributable
shall be treated as a Forfeiture pursuant to the Plan. Notwithstanding the
foregoing, effective December 31, 2001, or if later, the adoption.date of this
amendment and restatement, if the value of a Participant's Vested benefit
derived from Employer and Employee contributions does not exceed $5,000 ($3,500
for Plan Years beginning prior to August 6, 1997), then the amount distributable
may, in the sole discretion of the Administrator, either be treated as a
Forfeiture, or be paid directly to an individual retirement account described in
Code Section 408(a) or individual retirement annuity described in Code Section
408(b) at the time it is determined that the whereabouts of the Participant or
the Participant's Beneficiary cannot be ascertained. In the event a Participant
or Beneficiary is located subsequent to the Forfeiture, such benefit shall be
restored, first from Forfeitures, if any, and then from an additional Employer
contribution if necessary. However, regardless of the preceding, a benefit which
is lost by reason of escheat under applicable state law is not treated as a
Forfeiture for purposes of this Section nor as an impermissible forfeiture under
the Code.

           

          
            
              
              

            

            
              58

              
                

              

            

            
              
              

            

          

          
            	
                    7.9

                  	
                    RIGHT
      OF FIRST REFUSALS

                  

          

           

          (a)    If
any Participant, the Participant's Beneficiary or any other person to whom
shares of Company Stock are distributed from the Plan (the "Selling
Participant") shall, at any time, desire to sell some or all of such shares (the
"Offered Shares") to a third party (the "Third Party"), the Selling Participant
shall give written notice of such desire to the Employer and the Administrator,
which notice shall contain the number of shares offered for sale, the proposed
terms of the sale and the names and addresses of both the Selling Participant
and Third Party. Both the Trust Fund and the Employer shall each have the right
of first refusal for a period of fourteen (14) days from the date the Selling
Participant gives such written notice to the Employer and the Administrator
(such fourteen (14) day period to run concurrently against the Trust Fund and
the Employer) to acquire the Offered Shares. As between the Trust Fund and the
Employer, the Trust Fund shall have priority to acquire the shares pursuant to
the right of first refusal. The selling price and terms shall be the same as
offered by the Third Party.

           

          (b)    If
the Trust Fund and the Employer do not exercise their right of first refusal
within the required fourteen (14) day period provided above, the Selling
Participant shall have the right, at any time following the expiration of such
fourteen (14) day period, to dispose of the Offered Shares to the Third Party;
provided, however, that (i) no disposition shall be made to the Third Party on
terms more favorable to the Third Party than those set forth in the written
notice delivered by the Selling Participant above, and (ii) if such disposition
shall not be made to a third party on the terms offered to the Employer and the
Trust Fund, the offered Shares shall again be subject to the right of first
refusal set forth above.

           

          (c)     The
closing pursuant to the exercise of the right of first refusal under
Section 7.9(a) above shall take place at such place agreed upon between the
Administrator and the Selling Participant, but not later than ten (10) days
after the Employer or the Trust Fund shall have notified the Selling Participant
of the exercise of the right of first refusal. At such closing, the Selling
Participant shall deliver certificates representing the Offered Shares duly
endorsed in blank for transfer, or with stock powers attached duly executed in
blank with all required transfer tax stamps attached or provided for, and the
Employer or the Trust Fund shall deliver the purchase price, or an appropriate
portion thereof, to the Selling Participant.

           

          
            	
                    7.10

                  	
                    STOCK
      CERTIFICATE LEGEND

                  

          

           

          Certificates
for shares distributed pursuant to the Plan shall contain the following
legend:

           

          "The
shares represented by this certificate are transferable only upon compliance
with the terms of COMMUNITY CAPITAL CORPORATION EMPLOYEE STOCK OWNERSHIP PLAN
(WITH CODE SECTION 401(K) PROVISIONS) effective as of December 31, 2001, which
grants to CapitalBank a right of first refusal, a copy of said Plan being on
file in the office of the Company."

           

          
            
              
              

            

            
              59

              
                

              

            

            
              
              

            

          

          
            
              	
                      7.11

                    	
                      PUT
      OPTION

                    

            

          

           

          (a)   If
Company Stock is distributed to a Participant and such Company Stock is not
readily tradeable on an established securities market, a Participant has a right
to require the Employer to repurchase the Company Stock distributed to such
Participant under a fair valuation formula. Such Stock shall be subject to the
provisions of Section 7.11(b).

           

          (b)   The
put option must be exercisable only by a Participant, by the Participant's
donees, or by a person (including an estate or its distributee) to whom the
Company Stock passes by reason of a Participant's death. (Under this paragraph
Participant or Former Participant means a Participant or Former Participant and
the beneficiaries of the Participant or Former Participant under the Plan.) The
put option must permit a Participant to put the Company Stock to the Employer.
Under no circumstances may the put option bind the Plan. However, it shall grant
the Plan an option to assume the rights and obligations of the Employer at the
time that the put option is exercised. If it is known at the time a loan is made
that Federal or State law will be violated by the Employer honoring such put
option, the put option must permit the Company Stock to be put, in a manner
consistent with such law, to a third party (e.g., an affiliate of the Employer
or a shareholder other than the Plan) that has substantial net worth at the time
the loan is made and whose net worth is reasonably expected to remain
substantial.

           

          The put
option shall commence as of the day following the date the Company Stock is
distributed to the Former Participant and end sixty (60) days thereafter and if
not exercised within such sixty (60) day period, an additional sixty (60) day
option shall commence on the first day of the fifth month of the Plan Year next
following the date the stock was distributed to the Former Participant (or such
other sixty (60) day period as provided in Regulations). However, in the case of
Company Stock that is publicly traded without restrictions when distributed but
ceases to be so traded within either of the sixty (60) day periods described
herein after distribution, the Employer must notify each holder of such Company
Stock in writing on or before the tenth day after the date the Company Stock
ceases to be so traded that for the remainder of the applicable sixty (60) day
period the Company Stock is subject to the put option. The number of days
between the tenth day and the date on which notice is actually
given, if later than the tenth day, must be added to the duration of the put
option. The notice must inform distributees of the term of the put options that
they are to hold. The terms must satisfy the requirements of this
paragraph.

           

          The put
option is exercised by the holder notifying the Employer in writing that the put
option is being exercised; the notice shall state the name and address of the
holder and the number of shares to be sold. The period during which a put option
is exercisable does not include any time when a distributee is unable to
exercise it because the party bound by the put option is prohibited from
honoring it by applicable Federal or State law. The price at which a put option
must be exercisable is the value of the Company Stock determined in accordance
with
Section 6.2. Payment under the put option involving a "Total Distribution" shall
be paid in substantially equal monthly, quarterly, semiannual or annual
installments over a period certain beginning not later than thirty (30) days
after the exercise of the put option and not extending beyond five (5) years.
The deferral of payment is reasonable if adequate security and a reasonable
interest rate on the unpaid amounts are provided. The amount to be paid under
the put option involving installment distributions must be paid not later than
thirty (30) days after the exercise of the put option. Payment under a put
option must not be restricted by the provisions of a loan or any other
arrangement, including the terms of the Employer articles of incorporation,
unless so required by applicable state law.

           

          
            
              
              

            

            
              60

              
                

              

            

            
              
              

            

          

          For
purposes of this Section, "Total Distribution" means a distribution to a
Participant or the Participant's Beneficiary within one (1) taxable year of the
entire Vested Participant's Combined Account.

           

          (c) An
arrangement involving the Plan that creates a put option must not
provide for the issuance of put options other than as provided under this
Section. The Plan (and the Trust Fund) must not otherwise obligate itself to
acquire Company Stock from a particular holder thereof at an indefinite time
determined upon the happening of an event such as the death of the
holder.

           

          
            	
                    7.12

                  	
                    PRE-RETIREMENT
      DISTRIBUTION

                  

          

           

          Unless
otherwise provided, at such time as a Participant shall have attained the age of
59 1/2 years, the Administrator, at the election of the Participant who has not
severed employment with the Employer, shall direct the Trustee to distribute all
or a portion from the Participant's Elective Account maintained on behalf of the
Participant. In the event that the Administrator makes such a distribution, the
Participant shall continue to be eligible to participate in the Plan on the same
basis as any other Employee. Any distribution made pursuant to this Section
shall be made in a manner consistent with Sections 7.5 and 7.6, including, but
not limited to, all notice and consent requirements of Code Section 411(a)(11)
and the Regulations thereunder.

           

          
            	
                    7.13

                  	
                    ADVANCE
      DISTRIBUTION FOR HARDSHIP

                  

          

           

          (a)  
The Administrator, at the election of the Participant, shall direct the
Trustee to distribute to any Participant in any one Plan Year up to the lesser
of 100% of the Participant's Elective Account and Participant's
Transfer/Rollover Account valued as of the last Valuation Date or the amount
necessary to satisfy the immediate and heavy financial need of the Participant.
Any distribution made pursuant to this Section shall be deemed to be made as of
the first day of the Plan Year or, if later, the Valuation Date immediately
preceding the date of distribution,
and the Participant's Elective Account and Participant's Transfer/Rollover
Account shall be reduced accordingly. Withdrawal under this Section is deemed to
be on account of an immediate and heavy financial need of the Participant only
if the withdrawal is for:

           

          (1)   Medical
expenses described in Code Section 213(d) incurred by the Participant, the
Participant's spouse, or any of the Participant's dependents (as defined in Code
Section 152) or necessary for these persons to obtain medical care as described
in Code Section 213(d);

           

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

           

          (3)   Payment
of tuition, related educational fees, and room and board expenses for the next
twelve (12) months of post-secondary education for the Participant, and the
Participant's spouse, children, or dependents; or

           

          
            
              
              

            

            
              61

              
                

              

            

            
              
              

            

          

          (4)   Payments
necessary to prevent the eviction of the Participant from the Participant's
principal residence or foreclosure on the mortgage on that
residence.

           

          (b) 
No distribution shall be made pursuant to this Section unless the Administrator,
based upon the Participant's representation and such other facts as are known to
the Administrator, determines that all of the following conditions are
satisfied:

           

          (1)   The
distribution is not in excess of the amount of the immediate and heavy financial
need of the Participant. The amount of the immediate and heavy financial need
may include any amounts necessary to pay any federal, state, or local income
taxes or penalties reasonably anticipated to result from the
distribution;

           

          (2)   The
Participant has obtained all distributions, other than hardship distributions,
and all nontaxable (at the time of the loan) loans currently available under all
plans maintained by the Employer;

           

          (3)   The
Plan, and all other plans maintained by the Employer, provide that the
Participant's elective deferrals and after-tax voluntary Employee contributions
will be suspended for at least twelve (12) months after receipt of the hardship
distribution or, the Participant, pursuant to a legally enforceable agreement,
will suspend elective deferrals and after-tax voluntary Employee contributions
to the Plan and all other plans maintained by the Employer for at least twelve
(12) months after receipt of the hardship distribution; and

           

          (4)   The
Plan, and all other plans maintained by the Employer, provide that the
Participant may not make elective deferrals for the Participant's taxable year
immediately following the taxable year of the hardship distribution in excess of
the applicable limit under Code Section 402(g) for such next taxable year less
the amount of such Participant's elective deferrals for the taxable year of the
hardship distribution.

           

          (c) 
Notwithstanding the above, distributions from the Participant's Elective
Account pursuant to this Section shall be limited solely to the Participant's
total Deferred Compensation as of the date of distribution, reduced by the
amount of any previous distributions pursuant to this Section and Section
7.12.

           

          (d) 
Any distribution made pursuant to this Section shall be made in a manner
which is consistent with and satisfies the provisions of Sections 7.5 and 7.6,
including, but not limited to, all notice and consent requirements of Code
Section 411(a)(11) and the Regulations thereunder.

           

          
            
              
              

            

            
              62

              
                

              

            

            
              
              

            

          

          
            	
                    7.14

                  	
                    QUALIFIED
      DOMESTIC RELATIONS ORDER
DISTRIBUTION

                  

          

           

          All
rights and benefits, including elections, provided to a Participant in this Plan
shall be subject to the rights afforded to any "alternate payee" under a
"qualified domestic relations order." Furthermore, a distribution to an
"alternate payee" shall be permitted if such distribution is authorized by a
"qualified domestic relations order," even if the affected Participant has not
separated from service and has not reached the "earliest retirement age" under
the Plan. For the purposes of this Section, "alternate payee," "qualified
domestic relations order" and "earliest retirement age" shall have the meaning
set forth under Code Section 414(p).

           

          
            	
                    7.15

                  	
                    DIRECT
      ROLLOVER

                  

          

           

          (a)   Notwithstanding
any provision of the Plan to the contrary that would
otherwise limit a "distributee's" election under this Section, a "distributee"
may elect, at the time and in the manner prescribed by the Administrator, to
have any portion of an "eligible rollover distribution" that-is equal to at
least $500 paid directly to an "eligible retirement plan" specified by the
"distributee" in a "direct rollover."

           

          (b)   For
purposes of this Section the following definitions shall apply:

           

          (1)    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: 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, or for a specified period of ten years
or more; any distribution to the extent such distribution is required under Code
Section 401(a)(9); the portion of any other distribution that is not includible
in gross income (determined without regard to the exclusion for net unrealized
appreciation with respect to employer securities); any hardship distribution
described in Code Section 401(k)(2)(B)(i)(IV); and any other distribution that
is reasonably expected to total less than $200 during a year.

           

          (2)    An
"eligible retirement plan" is an individual retirement account described in Code
Section 408(a), an individual retirement annuity described in Code Section
408(b), an annuity plan described in Code Section 403(a), or a qualified trust
described in Code Section 401(a), that accepts
the "distributee's" "eligible rollover distribution." However, in the case of an
"eligible rollover distribution" to the surviving spouse, an "eligible
retirement plan" is an individual retirement account or individual retirement
annuity.

           

          (3)    A
"distributee" includes an Employee or former Employee. In addition,
the Employee's or former Employee's surviving spouse and the Employee's or
former Employee's spouse or former spouse who is the alternate payee under a
qualified domestic relations order, as defined in Code Section 414(p), are
"distributees" with regard to the interest of the spouse or former
spouse.

           

          (4)    A
"direct rollover" is a payment by the Plan to the "eligible retirement
plan" specified by the "distributee."

           

          
            
              
              

            

            
              63

              
                

              

            

            
              
              

            

          

          ARTICLE
VIII

          AMENDMENT,
TERMINATION, MERGERS AND LOANS

           

          
            	
                    8.1

                  	
                    AMENDMENT

                  

          

           

          (a)  
The Employer shall have the right at any time to amend this Plan subject
to the limitations of this Section. However, any amendment which affects the
rights, duties or responsibilities of the Trustee or Administrator, may only be
made with the Trustee's or Administrator's written consent. Any such amendment
shall become effective as provided therein upon its execution. The Trustee shall
not be required to execute any such amendment unless the amendment affects the
duties of the Trustee hereunder.

           

          (b)   No
amendment to the Plan shall be effective if it authorizes or permits
any part of the Trust Fund (other than such part as is required to pay taxes and
administration expenses) to be used for or diverted to any purpose other than
for the exclusive benefit of the Participants or their Beneficiaries or estates;
or causes any reduction in the amount credited to the account of any
Participant; or causes or permits any portion of the Trust Fund to revert to or
become property of the Employer.

           

          (c)    Except
as permitted by Regulations (including Regulation 1.411(d)-4)
or other IRS guidance, no Plan amendment or transaction having the effect of a
Plan amendment (such as a merger, plan transfer or similar transaction) shall be
effective if it eliminates or reduces any "Section 411(d)(6) protected benefit"
or adds or modifies conditions relating to "Section 411(d)(6) protected
benefits" which results in a further restriction on such benefit unless such
"Section 411(d)(6) protected benefits" are preserved with respect to benefits
accrued as of the later of the adoption date or effective date of the amendment.
"Section 411(d)(6) protected benefits" are benefits described in Code Section
411(d)(6)(A), early retirement benefits and retirement-type subsidies, and
optional forms of benefit. A Plan amendment that eliminates or restricts the
ability of a Participant to receive payment of the Participant's interest in the
Plan under a
particular optional form of benefit will be permissible if the amendment
satisfies the conditions in (1) and (2) below:

           

          (1)    The
amendment provides a single-sum distribution form that is otherwise identical to
the optional form of benefit eliminated or restricted. For purposes of this
condition (1), a single-sum distribution form is otherwise identical only if it
is identical in all respects to the eliminated or restricted optional form of
benefit (or would be identical except that it provides greater rights to the
Participant) except with respect to the timing of payments after
commencement.

           

          (2)    The
amendment is not effective unless the amendment provides that the amendment
shall not apply to any distribution with an annuity starting date earlier than
the earlier of (i) the ninetieth (90th) day after the date the Participant
receiving the distribution has been furnished a summary that reflects the
amendment and that satisfies the Act requirements at 29 CFR 2520.104b-3
(relating to a summary of material modifications) or (ii) the first day of the
second Plan Year following the Plan Year in which the amendment is
adopted.

           

          
            
              
              

            

            
              64

              
                

              

            

            
              
              

            

          

          
            	
                    8.2

                  	
                    TERMINATION

                  

          

           

          (a)   The
Employer shall have the right at any time to terminate the Plan by
delivering to the Trustee and Administrator written notice of such termination.
Upon any full or partial termination, all amounts credited to the affected
Participants' Combined Accounts shall become 100% Vested as provided in Section
7.4 and shall not thereafter be subject to forfeiture, and all unallocated
amounts, including Forfeitures, shall be allocated to the accounts of all
Participants in accordance with the provisions hereof.

           

          (b)   Upon
the full termination of the Plan, the Employer shall direct the distribution
of the assets of the Trust Fund to Participants in a manner which is consistent
with and satisfies the provisions of Sections 7.5 and 7.6. Except as permitted
by Regulations, the termination of the Plan shall not result in the reduction of
"Section 411(d)(6) protected benefits" in accordance with Section
8.1(c).

           

          
            	
                    8.3

                  	
                    MERGER,
      CONSOLIDATION OR TRANSFER OF ASSETS

                  

          

           

          This Plan
and Trust may be merged or consolidated with, or its assets and/or liabilities
may be transferred to any other plan and trust only if the benefits which would
be received by a Participant of this Plan, in the event of a termination of the
Plan immediately after such transfer, merger or consolidation, are at least
equal to the benefits the Participant would have received if the Plan had
terminated immediately before the transfer, merger or consolidation, and such
transfer, merger or consolidation does not otherwise result in the elimination
or reduction of any "Section 411(d)(6) protected benefits" in accordance with
Section 8.1(c).

           

          
            	
                    8.4

                  	
                    LOANS
      TO PARTICIPANTS

                  

          

           

          (a)  
The Trustee may, in the Trustee's discretion, make loans to Participants
and Beneficiaries under the following circumstances: (1) loans shall be made
available to all Participants and Beneficiaries on a reasonably equivalent
basis; (2) loans shall not be made available to Highly Compensated Employees in
an amount greater than the amount made available to other Participants and
Beneficiaries; (3) loans shall bear a reasonable rate of interest; (4) loans
shall be adequately secured; (5) loans shall provide for periodic repayment over
a reasonable period of time, and (6) loans shall only be available in the event
of hardship or financial necessity.

           

          
            
              
              

            

            
              65

              
                

              

            

            
              
              

            

          

          Hardship
or financial necessity is defined as a significant health expense or a loss of
income due to illness or disability incurred by a Member, or the death of a
Member or an immediate family member of a Member. Hardship or financial
necessary also includes the purchase of a Member's principal place of residence,
the prevention of eviction from or foreclosure on a Member's principal place of
residence, as well as, paying for a college education (including graduate
studies) for either a Member or a Member's dependents.

           

          (b)  
Loans made pursuant to this Section (when added to the outstanding
balance of all other loans made by the Plan to the Participant) may, in
accordance with a uniform and nondiscriminatory policy established by the
Administrator, be limited to the lesser of:

           

          (1)    $50,000
reduced by the excess (if any) of the highest outstanding balance of loans from
the Plan to the Participant during the one year period ending on the day before
the date on which such loan is made, over the outstanding balance of loans from
the Plan to the Participant on the date on which such loan was made,
or

           

          (2)    one-half
(1/2) of the present value of the non-forfeitable accrued benefit of the
Participant under the Plan.

           

          For
purposes of this limit, all plans of the Employer shall be considered one
plan.

           

          (c)  
Loans shall provide for level amortization with payments to be made not
less frequently than quarterly over a period not to exceed five (5) years.
However, loans used to acquire any dwelling unit which, within a reasonable
time, is to be used (determined at the time the loan is made) as a "principal
residence" of the Participant shall provide for periodic repayment over a
reasonable period of time that may exceed five (5) years. For this purpose, a
"principal residence" has the same meaning as a "principal residence" under Code
Section 1034. Loan repayments may be suspended under this Plan as permitted
under Code Section 414(u)(4).

           

          (d) 
Any loans granted or renewed shall be made pursuant to a Participant
loan program. Such loan program shall be established in writing and must
include, but need not be limited to, the following:

           

          (1)   the
identity of the person or positions authorized to administer the Participant
loan program;

           

          (2)   a
procedure for applying for loans;

           

          
            
              
              

            

            
              66

              
                

              

            

            
              
              

            

          

          (3)   the
basis on which loans will be approved or denied;

           

          (4)   limitations,
if any, on the types and amounts of loans offered;

           

          (5)   the
procedure under the program for determining a reasonable rate of
interest;

           

          (6)   the
types of collateral which may secure a Participant loan; and

           

          (7)   the
events constituting default and the steps that will be taken to preserve Plan
assets.

           

          Such
Participant loan program shall be contained in a separate written document
which, when properly executed, is hereby incorporated by reference and made a
part of the Plan. Furthermore, such Participant loan program may be modified or
amended in writing from time to time without the necessity of amending this
Section.

           

          (e)  
Notwithstanding anything in this Plan to the contrary, if a Participant
or Beneficiary defaults on a loan made pursuant to this Section, then the loan
default will be a distributable event to the extent permitted by the Code and
Regulations.

           

          Notwithstanding
anything in this Section to the contrary, any loans made prior to the date this
amendment and restatement is adopted shall be subject to the terms of the plan
in effect at the time such loan was made.

           

          ARTICLE
IX

          TOP
HEAVY

           

          
            	
                    9.1

                  	
                    TOP
      HEAVY PLAN REQUIREMENTS

                  

          

           

          For any
Top Heavy Plan Year, the Plan shall provide the special vesting requirements of
Code Section 416(b) pursuant to Section 7.4 of the Plan and the special minimum
allocation requirements of Code Section 416(c) pursuant to Section 4.4 of the
Plan.

           

          
            	
                    9.2

                  	
                    DETERMINATION
      OF TOP HEAVY STATUS

                  

          

           

          (a)  
This Plan shall be a Top Heavy Plan for any Plan Year in which, as of the
Determination Date, (1) the Present Value of Accrued Benefits of Key
Employees
and (2) the sum of the Aggregate Accounts of Key Employees under this Plan and
all plans of an Aggregation Group, exceeds sixty percent (60%) of the Present
Value of Accrued Benefits and the Aggregate Accounts of all Key and Non-Key
Employees under this Plan and all plans of an Aggregation Group.

           

          
            
              
              

            

            
              67

              
                

              

            

            
              
              

            

          

          If any
Participant is a Non-Key Employee for any Plan Year, but such Participant was a
Key Employee for any prior Plan Year, such Participant's Present Value of
Accrued Benefit and/or Aggregate Account balance shall not be taken into account
for purposes of determining whether this Plan is a Top Heavy Plan (or whether
any Aggregation Group which includes this Plan is a Top Heavy Group). In
addition, if a Participant or Former Participant has not performed any services
for any Employer maintaining the Plan at any time during the five year period
ending on the Determination Date, any accrued benefit for such Participant or
Former Participant shall not be taken into account for the purposes of
determining whether this Plan is a Top Heavy Plan.

           

          (b)  
Aggregate Account: A Participant's Aggregate Account as of the

           

          Determination
Date is the sum of:

           

          (1)    the
Participant's Combined Account balance as of the most recent valuation occurring
within a twelve (12) month period ending on the Determination Date.

           

          (2)    an
adjustment for any contributions due as of the Determination Date. Such
adjustment shall be the amount of any contributions actually made after the
Valuation Date but due on or before the Determination Date, except for the first
Plan Year when such adjustment shall also reflect the amount of any
contributions made after the Determination Date that are allocated as of a date
in that first Plan Year.

           

          (3)    any
Plan distributions made within the Plan Year that includes the Determination
Date or within the four (4) preceding Plan Years. However, in the case of
distributions made after the Valuation Date and prior to the Determination Date,
such distributions are not included as distributions for top heavy purposes to
the extent that such distributions are already included in the Participant's
Aggregate Account balance as of the Valuation Date. Notwithstanding anything
herein to the contrary, all distributions, including distributions under a
terminated plan which if it had not been terminated would have been required to
be included in an Aggregation Group, will be counted. Further, distributions
from the Plan (including the cash value of life insurance policies) of a
Participant's account balance because of death shall be treated as a
distribution for the purposes of this paragraph.

           

          (4)    any
Employee contributions, whether voluntary or mandatory. However, amounts
attributable to tax deductible qualified voluntary employee contributions shall
not be considered to be a part of the Participant's Aggregate Account
balance.

           

          
            
              
              

            

            
              68

              
                

              

            

            
              
              

            

          

          (5)    with
respect to unrelated rollovers and plan-to-plan transfers (ones which are both
initiated by the Employee and made from a plan maintained by one employer to a
plan maintained by another employer), if this Plan provides the rollovers or
plan-to-plan transfers, it shall always consider such rollovers or plan-to-plan
transfers as a distribution for the purposes of this Section. If this Plan is
the plan accepting such rollovers or plan-to-plan transfers, it shall not
consider such rollovers or plan-to-plan transfers as part of the Participant's
Aggregate Account balance.

           

          (6)    with
respect to related rollovers and plan-to-plan transfers (ones either not
initiated by the Employee or made to a plan maintained by the same employer), if
this Plan provides the rollover or plan-to-plan transfer, it shall not be
counted as a distribution for purposes of this Section. If this Plan is the plan
accepting such rollover or plan-to-plan transfer, it shall consider such
rollover or plan-to-plan transfer as part of the Participant's Aggregate Account
balance, irrespective of the date on which such rollover or plan-to-plan
transfer is accepted.

           

          (7)    For
the purposes of determining whether two employers are to be treated as the same
employer in (5) and (6) above, all employers aggregated under Code Section
414(b), (c), (m) and (o) are treated as the same employer.

           

          (c)  
"Aggregation Group" means either a Required Aggregation Groupor a
Permissive Aggregation Group as hereinafter determined.

           

          (1)   Required
Aggregation Group: In determining a Required Aggregation Group hereunder, each
plan of the Employer in which a Key Employee is a participant in the Plan Year
containing the Determination Date or any of the four preceding Plan Years, and
each other plan of the Employer which enables any plan in which a Key Employee
participates to meet the requirements of Code Sections 401(a)(4) or 410, will be
required to be aggregated. Such group shall be known as a Required Aggregation
Group.

           

          In the
case of a Required Aggregation Group, each plan in the group will be considered
a Top Heavy Plan if the Required Aggregation Group is a Top Heavy Group. No plan
in the Required Aggregation Group will be considered a Top Heavy Plan if the
Required Aggregation Group is not a Top Heavy Group.

           

          (2)   Permissive
Aggregation Group: The Employer may also include any other plan not required to
be included in the Required Aggregation Group, provided the resulting group,
taken as a whole, would continue to satisfy the provisions of Code Sections
401(a)(4) and 410. Such group shall be known as a Permissive Aggregation
Group.

           

          
            
              
              

            

            
              69

              
                

              

            

            
              
              

            

          

          In the
case of a Permissive Aggregation Group, only a plan that is part of the
Required Aggregation Group will be considered a Top Heavy Plan if the Permissive
Aggregation Group is a Top Heavy Group. No plan in the Permissive Aggregation
Group will be considered a Top Heavy Plan if the Permissive Aggregation Group is
not a Top Heavy Group.

           

          (3)   Only
those plans of the Employer in which the Determination Dates fall within the
same calendar year shall be aggregated in order to determine whether such plans
are Top Heavy Plans.

           

          (4)   An
Aggregation Group shall include any terminated plan of the Employer if it was
maintained within the last five (5) years ending on the Determination
Date.

           

          (d)   "Determination
Date" means (a) the last day of the preceding Plan Year, or (b) in the case of
the first Plan Year, the last day of such Plan Year.

           

          (e)    Present
Value of Accrued Benefit: In the case of a defined benefit plan, the Present
Value of Accrued Benefit for a Participant other than a Key Employee, shall be
as determined using the single accrual method used for all plans of the Employer
and Affiliated Employers, or if no such single method exists, using a method
which results in benefits accruing not more rapidly than the slowest accrual
rate permitted under Code Section 411(b)(1)(C). The determination of the Present
Value of Accrued Benefit shall 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.

           

          (f)     "Top
Heavy Group" means an Aggregation Group in which, as of the Determination Date,
the sum of:

           

          (1)     the
Present Value of Accrued Benefits of Key Employees under all defined
benefit plans included in the group, and

           

          (2)     the
Aggregate Accounts of Key Employees under all defined contribution
plans included in the group, exceeds
sixty percent (60%) of a similar sum determined for all Participants.

           

          ARTICLE
X

          MISCELLANEOUS

           

          
            	
                    10.1

                  	
                    PARTICIPANT'S
      RIGHTS

                  

          

           

          This Plan
shall not be deemed to constitute a contract between the Employer and any
Participant or to be a consideration or an inducement for the employment of any
Participant or Employee. Nothing contained in this Plan shall be deemed to give
any Participant or Employee the right to be retained in the service of the
Employer or to interfere with the right of the
Employer to discharge any Participant or Employee at any time regardless of the
effect which such discharge shall have upon the Employee as a Participant of
this Plan.

           

          
            
              
              

            

            
              70

              
                

              

            

            
              
              

            

          

          
            	
                    10.2

                  	
                    ALIENATION

                  

          

           

          (a)    Subject
to the exceptions provided below, and as otherwise permitted by the Code and
Act, no benefit which shall be payable out of the Trust Fund to any person
(including a Participant or the Participant's Beneficiary) shall be subject in
any manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, or charge, and any attempt to anticipate, alienate, sell, transfer,
assign, pledge, encumber, or charge the same shall be void; and no such benefit
shall in any manner be liable for, or subject to, the debts, contracts,
liabilities, engagements, or torts of any such person, nor shall it be subject
to attachment or legal process for or against such person, and the same shall
not be recognized by the Trustee, except to such extent as may be required by
law.

           

          (b)    Subsection
(a) shall not apply to the extent a Participant or Beneficiary is indebted to
the Plan by reason of a loan made pursuant to Section 8.4, as a result of a loan
from the Plan. At the time a distribution is to be made to or for a
Participant's or Beneficiary's benefit, such proportion of the amount to be
distributed as shall equal such indebtedness shall be paid to the Plan, to apply
against or discharge such indebtedness. Prior to making a payment, however, the
Participant or Beneficiary must be given written notice by the Administrator
that such indebtedness is to be so paid in whole or part from the Participant's
Combined Account. If the Participant or Beneficiary does not agree that the
indebtedness is a valid claim against the Vested Participant's Combined Account,
the Participant or Beneficiary shall be entitled to a review of the validity of
the claim in accordance with procedures provided in Sections 2.8 and
2.9.

           

          (c)     Subsection
(a) shall not apply to a "qualified domestic relations order" defined in Code
Section 414(p), and those other domestic relations orders permitted to be so
treated by the Administrator under the provisions of the Retirement Equity Act
of 1984. The Administrator shall establish a written procedure to determine the
qualified status of domestic relations orders and to administer distributions
under such qualified orders. Further, to the extent provided under a "qualified
domestic relations order," a former spouse of a Participant shall be treated as
the spouse or surviving spouse for all purposes under the Plan.

           

          (d)     Subsection
(a) shall not apply to an offset to a Participant's accrued benefit
against an amount that the Participant is ordered or required to pay the Plan
with respect to a judgment, order, or decree issued, or a settlement entered
into, on or after August 5, 1997, in accordance with Code Sections 401(a)(13)(C)
and (D).

           

          
            
              
              

            

            
              71

              
                

              

            

            
              
              

            

          

          
            	
                    10.3

                  	
                    CONSTRUCTION
      OF PLAN

                  

          

           

          This Plan
and Trust shall be construed and enforced according to the Code, the Act and the
laws of the State of South Carolina, other than its laws respecting choice of
law, to the extent not pre-empted by the Act.

           

          
            	
                    10.4

                  	
                    GENDER
      AND NUMBER

                  

          

           

          Wherever
any words are used herein in the masculine, feminine or neuter gender, they
shall be construed as though they were also used in another gender in all cases
where they would so apply, and whenever any words are used herein in the
singular or plural form, they shall be construed as though they were also used
in the other form in all cases where they would so apply.

           

          
            	
                    10.5

                  	
                    LEGAL
      ACTION

                  

          

           

          In the
event any claim, suit, or proceeding is brought regarding the Trust and/or Plan
established hereunder to which the Trustee, the Employer or the Administrator
may be a party, and such claim, suit, or proceeding is resolved in favor of the
Trustee, the Employer or the Administrator, they shall be entitled to be
reimbursed from the Trust Fund for any and all costs, attorney's fees, and other
expenses pertaining thereto incurred by them for which they shall have become
liable.

           

          
            	
                    10.6

                  	
                    PROHIBITION
      AGAINST DIVERSION OF FUNDS

                  

          

           

          (a)   Except
as provided below and otherwise specifically permitted by law, it shall be
impossible by operation of the Plan or of the Trust, by termination of either,
by power of revocation or amendment, by the happening of any contingency, by
collateral arrangement or by any other means, for any part of the corpus or
income of any Trust Fund maintained pursuant to the Plan or any funds
contributed thereto to be used for, or diverted to, purposes other than the
exclusive benefit of Participants, Former Participants, or their
Beneficiaries.

           

          (b)   In
the event the Employer shall make an excessive contribution under a mistake of
fact pursuant to Act Section 403(c)(2)(A), the Employer may demand repayment of
such excessive contribution at any time within one (1) year following the time
of payment and the Trustees shall return such amount to the Employer within the
one (1) year period. Earnings of the Plan attributable to the contributions may
not be returned to the Employer but any losses attributable thereto must reduce
the amount so returned.

           

          (c)    Except
for Sections 3.5, 3.6, and 4.1(e), any contribution by the Employer to the Trust
Fund is conditioned upon the deductibility of the contribution by the Employer
under the Code and, to the extent any such deduction is disallowed, the Employer
may, within one (1) year following the final determination of the disallowance,
whether by agreement with the Internal Revenue Service or by final decision of a
competent jurisdiction, demand repayment of such disallowed contribution and the
Trustee shall return such contribution within one (1) year following the
disallowance. Earnings of the Plan attributable
to the contribution may not be returned to the Employer, but any losses
attributable thereto must reduce the amount so returned.

           

          
            
              
              

            

            
              72

              
                

              

            

            
              
              

            

          

          
            	
                    10.7

                  	
                    EMPLOYER'S
      AND TRUSTEE'S PROTECTIVE CLAUSE

                  

          

           

          The
Employer, Administrator and Trustee, and their successors, shall not be
responsible for the validity of any Contract issued hereunder or for the failure
on the part of the insurer to make payments provided by any such Contract, or
for the action of any person which may delay payment or render a Contract null
and void or unenforceable in whole or in part.

           

          
            	
                    10.8

                  	
                    INSURER'S
      PROTECTIVE CLAUSE

                  

          

           

          Except as
otherwise agreed upon in writing between the Employer and the insurer, an
insurer which issues any Contracts hereunder shall not have any responsibility
for the validity of this Plan or for the tax or legal aspects of this Plan. The
insurer shall be protected and held
harmless in acting in accordance with any written direction of the Trustee, and
shall have no duty to see to the application of any funds paid to the Trustee,
nor be required to question any actions directed by the Trustee. Regardless of
any provision of this Plan, the insurer shall not be required to take or permit
any action or allow any benefit or privilege contrary to the terms of any
Contract which it issues hereunder, or the rules of the insurer.

           

          
            	
                    10.9

                  	
                    RECEIPT
      AND RELEASE FOR PAYMENTS

                  

          

           

          Any
payment to any Participant, the Participant's legal representative, Beneficiary,
or to any guardian or.committee appointed for such Participant or Beneficiary in
accordance with the provisions of the Plan, shall, to the extent thereof, be in
full satisfaction of all claims hereunder against the Trustee and the Employer,
either of whom may require such Participant, legal representative, Beneficiary,
guardian or committee, as a condition precedent to such payment, to execute a
receipt and release thereof in such form as shall be determined by the Trustee
or Employer.

           

          
            	
                    10.10

                  	
                    ACTION
      BY THE EMPLOYER

                  

          

           

          Whenever
the Employer under the terms of the Plan is permitted or required to do or
perform any act or matter or thing, it shall be done and performed by a person
duly authorized by its legally constituted authority.

           

          
            	
                    10.11

                  	
                    NAMED
      FIDUCIARIES AND ALLOCATION OF
RESPONSIBILITY

                  

          

           

          The
"named Fiduciaries" of this Plan are (1) the Employer, (2) the Administrator and
(3) the Trustee, and (4) any Investment Manager appointed hereunder. The named
Fiduciaries shall have only those specific powers, duties, responsibilities, and
obligations as are specifically given them under the Plan including, but not
limited to, any agreement allocating or delegating their responsibilities, the
terms of which are incorporated herein by reference. In general, the Employer
shall have the sole responsibility for making the contributions provided for
under Section 4.1; and shall have the authority to appoint and remove the
Trustee and the Administrator; to formulate the Plan's "funding policy and
method"; and to amend or terminate, in whole or in part, the Plan. The
Administrator shall have the sole responsibility for the administration of the
Plan, including, but not limited to, the items specified in Article II of the
Plan, as
the same may be allocated or delegated thereunder. The Trustee shall have the
sole responsibility of management of the assets held under the Trust, except to
the extent directed pursuant to Article II or with respect to those assets, the
management of which has been assigned to an Investment Manager, who shall be
solely responsible for the management of the assets assigned to it, all as
specifically provided in the Plan. Each named Fiduciary warrants that any
directions given, information furnished, or action taken by it shall be in
accordance with the provisions of the Plan, authorizing or providing for such
direction, information or action. Furthermore, each named Fiduciary may rely
upon any such direction, information or action of another named Fiduciary as
being proper under the Plan, and is not required under the Plan to inquire into
the propriety of any such direction, information or action. It is intended under
the Plan that each named Fiduciary shall be responsible for the proper exercise
of its own powers, duties, responsibilities and obligations under the Plan as
specified or allocated herein. No named Fiduciary shall guarantee the Trust Fund
in any manner against investment loss or depreciation in asset value. Any person
or group may serve in more than one Fiduciary capacity.

           

          
            
              
              

            

            
              73

              
                

              

            

            
              
              

            

          

          
            	
                    10.12

                  	
                    HEADINGS

                  

          

           

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

           

          
            	
                    10.13

                  	
                    APPROVAL
      BY INTERNAL REVENUE SERVICE

                  

          

           

          Notwithstanding
anything herein to the contrary, if, pursuant to an application for
qualification filed by or on behalf of the Plan by the time prescribed by law
for filing the Employer's return for the taxable year in which the Plan is
adopted, or such later date that the Secretary of the Treasury may prescribe,
the Commissioner of Internal Revenue Service or the Commissioner's delegate
should determine that the Plan does not initially qualify as a tax-exempt plan
under Code Sections 401 and 501, and such determination is not contested, or if
contested, is
finally upheld, then if the Plan is a new plan, it shall be void ab initio and
all amounts contributed to the Plan by the Employer, less expenses paid, shall
be returned within one (1) year and the Plan shall terminate, and the Trustee
shall be discharged from all further obligations. If the disqualification
relates to an amended plan, then the Plan shall operate as if it had not been
amended.

           

          
            	
                    10.14

                  	
                    UNIFORMITY

                  

          

           

          All
provisions of this Plan shall be interpreted and applied in a uniform,
nondiscriminatory manner. In the event of any conflict between the terms of this
Plan and any Contract purchased hereunder, the Plan provisions shall
control.

           

          
            	
                    10.15

                  	
                    SECURITIES
      AND EXCHANGE COMMISSION APPROVAL

                  

          

           

          The
Employer may request an interpretative letter from the Securities and Exchange
Commission stating that the transfers of Company Stock contemplated hereunder do
not involve transactions requiring a registration of such Company Stock under
the Securities Act of 1933. In the event that a favorable interpretative letter
is not obtained, the Employer reserves the right to amend the Plan and Trust
retroactively to their Effective Dates in order to obtain a favorable
interpretative letter or to terminate the Plan.

           

          
            
              
              

            

            
              74

              
                

              

            

            
              
              

            

          

          
            	
                    10.16

                  	
                    VOTING
      COMPANY STOCK

                  

          

           

          The
Trustee shall vote all Company Stock held by it as part of the Plan assets.
Provided, however, that if any agreement entered into by the Trust provides for
voting of any shares of Company Stock pledged as security for any obligation of
the Plan, then such shares of Company Stock shall be voted in accordance with
such agreement. If the Trustee does not timely receive voting directions from a
Participant or Beneficiary with respect to any Company Stock allocated to that
Participant's or Beneficiary's Company Stock Account, the Trustee shall vote
such Company Stock.

           

          Notwithstanding
the foregoing, if the Employer has a registration-type class of securities each
Participant or Beneficiary shall be entitled to direct the Trustee as to the
manner in which the Company Stock which is entitled to vote and which is
allocated to the Company Stock Account of such Participant or Beneficiary is to
be voted. If the Employer does not have a registration-type class of securities,
each Participant or Beneficiary in the Plan shall be entitled to direct the
Trustee as to the manner in which voting rights on shares of Company Stock which
are allocated to the Company Stock Account of such Participant or Beneficiary
are to be exercised with respect to any corporate matter which involves the
voting of such shares with respect to the approval or disapproval of any
corporate merger or consolidation, recapitalization, reclassification,
liquidation, dissolution, sale of substantially all assets of a trade or
business, or such similar transaction as prescribed in Regulations. For purposes
of this Section the term "registration-type class of securities" means: (A) a
class of securities required to be registered under Section 12 of the Securities
Exchange Act of 1934; and (B) a class of securities which would be required to
be so registered except for the exemption from registration provided in
subsection (g)(2)(H) of such Section 12.

           

          If the
Employer does not have a registration-type class of securities and the by-laws
of the Employer require the Plan to vote an issue in a manner that reflects a
one-man, one-vote philosophy, each Participant or Beneficiary shall be entitled
to cast one vote on an issue and the Trustee shall vote the shares held by the
Plan in proportion to the results of the votes cast on the issue by the
Participants and Beneficiaries.

           

          ARTICLE
XI

          PARTICIPATING
EMPLOYERS

           

          
            	
                    11.1

                  	
                    ADOPTION
      BY OTHER EMPLOYERS

                  

          

           

          Notwithstanding
anything herein to the contrary, with the consent of the Employer and Trustee,
any other corporation or entity, whether an affiliate or subsidiary or not, may
adopt this Plan and all of the provisions hereof, and participate herein and be
known as a Participating Employer, by a properly executed document evidencing
said intent and will of such Participating Employer.

           

          
            	
                    11.2

                  	
                    REQUIREMENTS
      OF PARTICIPATING EMPLOYERS

                  

          

           

          (a) Each
such Participating Employer shall be required to use the same Trustee
as provided in this Plan.

           

          (b) The
Trustee may, but shall not be required to, commingle, hold and invest as one
Trust Fund all contributions made by Participating Employers, as well as all
increments thereof.

           

          (c) Any
expenses of the Plan which are to be paid by the Employer or borne by the Trust
Fund shall be paid by each Participating Employer in the same proportion that
the total amount standing to the credit of all Participants employed by such
Employer bears to the total standing to the credit of all
Participants.

           

          
            
              
              

            

            
              75

              
                

              

            

            
              
              

            

          

          
            	
                    11.3

                  	
                    DESIGNATION
      OF AGENT

                  

          

           

          Each
Participating Employer shall be deemed to be a party to this Plan; provided,
however, that with respect to all of its relations with the Trustee and
Administrator for the purpose of this Plan, each Participating Employer shall be
deemed to have designated irrevocably the Employer as its agent. Unless the
context of the Plan clearly indicates the contrary,
the word "Employer" shall be deemed to include each Participating Employer as
related to its adoption of the Plan.

           

          
            	
                    11.4

                  	
                    EMPLOYEE
      TRANSFERS

                  

          

           

          In the
event an Employee is transferred between Participating Employers, accumulated
service and eligibility shall be carried with the Employee involved. No such
transfer shall effect a termination of employment hereunder, and the
Participating Employer to which the Employee is transferred shall thereupon
become obligated hereunder with respect to such Employee in the same manner as
was the Participating Employer from whom the Employee was
transferred.

           

          
            	
                    11.5

                  	
                    PARTICIPATING
      EMPLOYER CONTRIBUTION AND
FORFEITURES

                  

          

           

          Any
contribution or Forfeiture subject to allocation during each Plan Year shall be
allocated only among those Participants of the Employer or Participating
Employer making the contribution or by which the forfeiting Participant was
employed. However, if the contribution is made, or the forfeiting Participant
was employed, by an Affiliated Employer, in which event such contribution or
Forfeiture shall be allocated among all Participants of all Participating
Employers who are Affiliated Employers in accordance with the provisions of this
Plan. On the basis of the information furnished by the Administrator, the
Trustee may keep separate books and
records concerning the affairs of each Participating Employer hereunder and as
to the accounts and credits of the Employees of each Participating Employer. The
Trustee may, but need not, register Contracts so as to evidence that a
particular Participating Employer is the interested Employer hereunder, but in
the event of an Employee transfer from one Participating Employer to another,
the employing Participating Employer shall immediately notify the Trustee
thereof.

           

          
            	
                    11.6

                  	
                    AMENDMENT

                  

          

           

          Amendment
of this Plan by the Employer at any time when there shall be a Participating
Employer hereunder shall only be by the written action of each and every
Participating Employer and with the consent of the Trustee where such consent is
necessary in accordance with the terms of this Plan.

           

          
            
              
              

            

            
              76

              
                

              

            

            
              
              

            

          

          
            	
                    11.7

                  	
                    DISCONTINUANCE
      OF PARTICIPATION

                  

          

           

          Any
Participating Employer shall be permitted to discontinue or revoke its
participation in the Plan at any time. At the time of any such discontinuance or
revocation, satisfactory evidence thereof and of any applicable conditions
imposed shall be delivered to the Trustee. The Trustee shall thereafter
transfer, deliver and assign Contracts and other Trust Fund assets allocable to
the Participants of such Participating Employer to such new trustee as shall
have been designated by such Participating Employer, in the event that it has
established a separate qualified retirement plan for its Employees provided,
however, that no such transfer shall be made if the result is the elimination or
reduction of any "Section 411(d)(6) protected benefits" as described in Section
8.1(c). If no successor is designated, the Trustee shall retain such assets for
the Employees of said Participating Employer pursuant to the provisions of the
Trust. In no such event shall any part of the corpus or income of the Trust as
it relates to such Participating Employer be used for or diverted for purposes
other than for the exclusive benefit of the Employees of such Participating.
Employer.

           

          
            	
                    11.8

                  	
                    ADMINISTRATOR'S
      AUTHORITY

                  

          

           

          The
Administrator shall have authority to make any and all necessary rules or
regulations, binding upon all Participating Employers and all Participants, to
effectuate the purpose of this Article.

           

          
            
              
              

            

            
              77

              
                

              

            

            
              
              

            

             

            
              IN
WITNESS WHEREOF, this Plan has been executed the day and year first above
written.

               

            

            CapitalBank

             

            By: /s/
William Stevens

            EMPLOYER

             

            ATTEST
_________________

             

             

            
              
                
                

              

              
                78

                
                  

                

              

              
                
                

              

            

             

            
              
                	
                        INTERNAL REVENUE
      SERVICE 

                      	
                        DEPARTMENT OF THE
      TREASURY

                      

              

            

            P.O. BOX 2508

            CINCINNATI, OH
45201

             

          

        

        
          	
                  Date: AUG
      XX 2002

                  COMMUNITY
      CAPITAL CORPORATION

                  1402
      C HWY 72 W

                  GREENWOOD,
      SC 29646

                	
                  Employer
      Identification Number:

                    
      57-0866395

                  DLN:

                     17007058095012

                  Person
      to Contact:

                    
      STEVE COUNGERIS         ID#
      75138

                  Contact
      Telephone Number:

                    
      (877) 829-5500

                  Plan
      Name:

                     COMMUNITY
      CAPITAL CORPORATION ESOP

                  Plan
      Number: 
      001

                

        

         

        Dear
Applicant:

         

        We have
made a favorable determination on the plan identified above based on the
information you have supplied. Please keep this letter, the application forms
submitted to request this letter and all correspondence with the Internal
Revenue Service regarding your application for a determination letter in your
permanent records. You must retain this information to preserve your reliance on
this letter.

         

        Continued
qualification of the plan under its present form will depend on its effect in
operation. See section 1.401-1(b)(3) of the Income Tax Regulations. We will
review the status of the plan in operation periodically.

         

        The
enclosed Publication 794 explains the significance and the scope of this
favorable determination letter based on the determination requests selected on
your application forms. Publication 794 describes the information that must be
retained to have reliance on this favorable determination letter. The
publication also provide examples of the effect of a plan's operation on its
qualified status and discusses the reporting requirements for qualified plans.
Please read Publication 794.

         

        This
letter relates only to the status of your plan under the Internal Revenue Code.
It is not a determination regarding the effect of other federal or local
statutes.

         

        This
determination letter is applicable for the amendment(s) executed on January 23,
2002.

         

        This
determination letter is also applicable for the amendment(s) dated on December
20, 2001.

         

        This plan
satisfies the requirements of Code section 4975(e)(7).

         

        This
letter considers the changes in qualification requirements made by the Uruguay
Round Agreements Act, Pub. L. 103-465, the Small Business Job Protection Act of
1996, Pub. L. 104-188, the Uniformed Services Employment and Reemployment Rights
Act of 1994, Pub. L. 103-353, the Taxpayer Relief Act

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        -2-

         

         

        COMMUNITY
CAPITAL CORPORATION

         

         

        of 1997,
Pub. L. 105-34, the Internal Revenue Service Restructuring and Reform Act of
1998, Pub. L. 105-206, and the Community Renewal Tax Relief Act of 2000, Pub. L.
106-554.

         

        This
letter may not be relied on with respect to whether the plan satisfies the
requirements of section 401(a) of the Code, as amended by the Economic Growth
and Tax Relief Reconciliation Act of 2001, Pub L. 107-16.

         

        The
requirement for employee benefits plans to file summary plan descriptions (SPD)
with the U.S. Department of Labor was eliminated effective August 5, 1997. For
more details, call 1-800-998-7542 for a free copy of the SPD card.

         

        We have
sent a copy of this letter to your representative as indicated in the power of
attorney.

         

        If you
have questions concerning this matter, please contact the person whose name and
telephone number are shown above.

         

        Sincerely
yours,

         

        /s/ Paul
T. Shultz

         

        Paul T.
Shultz

        Director,

        Employee
Plans Rulings & Agreements

         

        Enclosures:

        Publication
794

         

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        AMENDMENT
OF THE PLAN FOR EGTRRA

         

         

         

        AMENDMENT
NUMBER ONE TO

        COMMUNITY
CAPITAL CORPORATION EMPLOYEE STOCK OWNERSHIP PLAN

        (WITH
CODE SECTION 401(K) PROVISIONS)

         

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

        AMENDMENT
NUMBER ONE TO

         

        COMMUNITY
CAPITAL CORPORATION EMPLOYEE STOCK OWNERSHIP PLAN

        (WITH
CODE SECTION 401(K) PROVISIONS)

         

        BY THIS
AGREEMENT, Community Capital Corporation Employee Stock Ownership Plan (with
Code Section 401(k) Provisions) (herein referred to as the Plan) is hereby
amended as follows:

         

        ARTICLE
I

        PREAMBLE

         

        1.1
Adoption and effective date of amendment. This amendment of the Plan is adopted
to reflect
certain provisions of the Economic Growth and Tax Relief Reconciliation Act of
2001 (EGTRRA). This amendment is intended as good faith compliance with the
requirements of EGTRRA and is to be construed in accordance with EGTRRA and
guidance issued thereunder. Except as otherwise provided, this amendment shall
be effective as of the first day of the first Plan Year beginning after December
31, 2001.

         

        1.2
Supersession of inconsistent provisions. This amendment shall supersede the
provisions of the
Plan to the extent those provisions are inconsistent with the provisions of this
amendment.

         

        ARTICLE
II

        LIMITATIONS
ON CONTRIBUTIONS

         

        2.1
Effective date. This Article shall be effective for "limitation years" beginning
after December
31, 2001.

         

        2.2
Maximum annual addition. Except to the extent permitted under Article VIII of
this amendment
and Code Section 414(v), the "annual addition" that may be contributed or
allocated to a Participant's account under the Plan for any "limitation year"
shall not exceed the lesser of:

         

        (a)   $40,000,
as adjusted for increases in the cost-of-living under Code Section 415(d),
or

         

        (b)   one-hundred
percent (100%) of the Participant's "415 Compensation" for the "limitation
year."

         

        The "415
Compensation" limit referred to in (b) shall not apply to any contribution for
medical benefits after separation from service (within the meaning of Code
Section 401(h) or Code Section 419A(f)(2)) which is otherwise treated as an
"annual addition."

         

        ARTICLE
III

        INCREASE
IN COMPENSATION LIMIT

         

        The
annual Compensation of each Participant taken into account in determining
allocations for any Plan Year beginning after December 31, 2001, shall not
exceed $200,000, as adjusted for cost-of-living increases in accordance with
Code Section 401(a)(17)(B).

         

        
          
             

          

          
            1

            
              

            

          

          
             

          

        

        ARTICLE
IV

        MODIFICATION
OF TOP-HEAVY RULES

         

        4.1
Effective date. This Article shall apply for purposes of determining whether the
Plan is atop-heavy
plan under Code Section 416(g) for Plan Years beginning after December 31, 2001,
and whether the Plan satisfies the minimum benefits requirements of Code Section
416(c) for such years. This Article amends Article IX of the Plan.

         

        4.2
Determination of top-heavy status.

         

        (a)  Key
employee. Key employee means any Employee or former Employee (including any
deceased Employee) who at any time during the Plan Year that includes the
determination date was an officer of the Employer having "415 Compensation"
greater than $130,000 (as adjusted under Code Section 416(i)(1) for Plan Years
beginning after December 31, 2002), a 5-percent owner of the Employer, or a
1-percent owner of the Employer having "415 Compensation" of more than $150,000.
The determination of who is a key employee will be made in accordance with Code
Section 416(i)(1) and the applicable regulations and other guidance of general
applicability issued thereunder.

         

        (b)  Determination
of present values and amounts. This section (b) shall apply for purposes of
determining the present values of accrued benefits and the amounts of account
balances of Employees as of the determination date.

         

        (1)   Distributions
during year ending on the determination date. The present values of accrued
benefits and the amounts of account balances of an Employee as of the
determination date shall be increased by the distributions made with respect to
the Employee under the Plan and any plan aggregated with the Plan under Code
Section 416(g)(2) during the 1-year period ending on the determination date. 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). In the case of a distribution made for a
reason other than separation from service, death, or disability, this provision
shall be applied by substituting 5-year period for 1-year period.

         

        (2)   Employees
not performing services during year ending on the determination date. The
accrued benefits and accounts of any individual who has not performed services
for the Employer during the 1-year period ending on the determination date shall
not be taken into account.

         

        4.3
Minimum benefits. Employer matching contributions shall be taken into account
for purposes
of satisfying the minimum contribution requirements of Code Section 416(c)(2)
and the Plan. The preceding sentence shall apply with respect to matching
contributions under the Plan or, if the Plan provides that the minimum
contribution requirement shall be met in another plan, such other plan. Employer
matching contributions that are used to satisfy the minimum contribution
requirements shall be treated as matching contributions for purposes of the
actual contribution percentage test and other requirements of Code Section
401(m).

         

        
          
             

          

          
            2

            
              

            

          

          
             

          

        

        ARTICLE
V

        DIRECT
ROLLOVERS OF PLAN DISTRIBUTIONS

         

        5.1
Effective date. This Article shall apply to distributions made after December
31, 2001.

         

        5.2
Modification of definition of eligible retirement plan. For purposes of the
direct rollover provisions
in Section 7.15 p.63 of the Plan, 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 relation order, as
defined in Code Section 414(p).

         

        5.3
Modification of definition of eligible rollover distribution to exclude hardship
distributions.
For purposes of the direct rollover provisions in Section 7.15 p.63 of the Plan,
any amount that is distributed on account of hardship shall not be an eligible
rollover distribution and the distributee may not elect to have any portion of
such a distribution paid directly to an eligible retirement plan.

         

        ARTICLE
VI

        ROLLOVERS
FROM OTHER PLANS

         

        The
Administrator, operationally and on a nondiscriminatory basis, may limit the
source of rollover contributions that may be accepted by this Plan.

         

        ARTICLE
VII

        REPEAL OF
MULTIPLE USE TEST

         

        The
multiple use test described in Treasury Regulation Section 1.401(m)-2 and
Section 4.7(a)(2) p.35 of the Plan shall not apply for Plan Years beginning
after December 31, 2001.

         

        ARTICLE
VIII

        CATCH-UP
CONTRIBUTIONS

         

        8.1
Effective date. This Article shall apply to catch-up contributions made on and
after January
1, 2002.

         

        8.2
Applicability. All Employees who are eligible to make salary reductions under
this Plan and who
have attained age 50 before the close of the Plan Year shall be eligible to make
catch-up contributions in accordance with, and subject to the limitations of,
Code Section 414(v). Such catch-up contributions shall not be taken into account
for purposes of the provisions of the Plan implementing the required limitations
of Code Sections 402(g) and 415. The Plan shall not be treated as failing to
satisfy the provisions of the Plan implementing the requirements of Code Section
401(k)(3), 401(k)(11), 401(k)(12), 410(b), or 416, as applicable, by reason of
the making of such catch-up contributions.

         

        
          
             

          

          
            3

            
              

            

          

          
             

          

        

        ARTICLE
IX

        SUSPENSION
PERIOD FOLLOWING HARDSHIP DISTRIBUTION

         

        A
Participant who receives a distribution of elective deferrals after December 31,
2001, on account of hardship shall be prohibited from making elective deferrals
and Employee contributions under this and all other plans of the Employer for
six (6) months after receipt of the distribution. A Participant who receives a
distribution of elective deferrals in calendar year 2001 on account of hardship
shall be prohibited from making elective deferrals and employee contributions
under this and all other plans of the Employer for the period specified in the
provisions of the Plan relating to suspension of elective deferrals that were in
effect prior to this amendment.

         

        ARTICLE
X

        DISTRIBUTION
UPON SEVERANCE FROM EMPLOYMENT

         

        10.1.
Effective date. This Article shall apply for distributions occurring on and
after January 1, 2002 regardless of when severance from employment
occurred.

         

        10.2. New
distributable event. A Participant's Elective Contributions and earnings
attributable to these contributions shall be distributed on account of the
Participant's severance from employment. However, such a distribution shall be
subject to the other provisions of the Plan regarding distributions, other than
provisions that require a separation from service before such amounts may be
distributed.

         

        
          
             

          

          
            4

            
              

            

          

          
             

          

        

        IN
WITNESS WHEREOF, this amendment has been executed this 23rd day of
January 2002.

         

        CapitalBank

         

        By:/s/ Ralph Brewer, CFO

        EMPLOYER

         

        ATTEST  Mary
Miller

         

         

        
          
             

          

          
            5

            
              

            

          

          
             

          

        

         

        AMENDMENT
NUMBER TWO TO

        COMINIUNITY
CAPITAL CORPORATION EMPLOYEE STOCK OWNERSHIP PLAN

        (WITH
CODE SECTION 401(k) PROVISIONS)

         

        WHEREAS,
CapitalBank, a corporation organized and existing under the laws of South
Carolina (the "Company"), previously established and currently maintains the
Community Capital Corporation Employee Stock Ownership Plan (with Code Section
401(k) Provisions) (the "Plan") for the be:iefit of eligible employees of the
Company and any Participating 'Employer with respect to whom the Company has
consented to the adoption of the Plan; and

         

        WHEREAS.,
Section 8.1 of the Plan authorizes the Company to amend the Plan. as it deems
appropriate from time to time; and

         

        WHEREAS,
pursuant to proper filings made with the South Carolina Secretary of State,
effective at 11:59 p.m. on March 4, 2004, The Bank of Abbeville merged with and
into the Company, with the Company being the surviving entity, and Abbeville
Capital Corporation merged with and into Community Capital Corporation, a South
Carolina corporation which is the parent holding company of the Company, with
Community Capital Corporation being the surviving entity; and

         

        WHEREAS,
in connection with the merger described above, the Company now deems it
necessary and appropriate to amend the Plan to provide for the immediate and
full vesting of former employees of The Bank of Abbeville and Abbeville Capital
Corporation who became employees of the Company or a Participating
Employer.

         

        NOW,
THEREFORE, the Plan is
hereby amended as follows:

         

        1.   Notwithstanding
any provision of the Plan to the contrary, effective as of March 4, 2004,
Section 7.4 of the Plan is amended by adding the following sentence at the end
of subparagraph (d):

         

        Effective
March 4, 2004, former employees of The Bank of Abbeville, a South Carolina
corporation, which merged with and into the Employer, and former employees of
Abbeville Capital Corporation, a South Carolina corporation, which merged with
and into Community Capital Corporation, shall bet00% Vested and all amounts then
credited to the account of any affected Participant shall not thereafter be
subject to Forfeiture.

         

        2.   Except
as hereinabove amended the Plan shall remain in full force and
effect.

         

        IN
WITNESS
WHEREOF, the Company has caused this Amendment Number Two to be executed
on this 20th day of
October, 2004.

         

        CAPITALBANK

         

        By: /s/ Ralph Brewer

        Title:
CFO/Secretary

         

         

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

         

        AMENDMENT
NUMBER THREE TO

        COMMUNITY
CAPITAL CORPORATION EMPLOYEE STOCK OWNERSHIP PLAN

        (WITH
CODE SECTION 401(k) PROVISIONS)

         

        WHEREAS,
CapitalBank, a corporation organized and existing under the laws of South
Carolina (the "Company), previously established and currently maintains the
Community Capital Corporation Employee Stock Ownership Plan (with Code Section
401(k) Provisions) (the "Plan") for the benefit of eligible employees of the
Company and any Participating Employer with respect to whom the Company has
consented to the adoption of the Plan; and

         

        WHEREAS,
Section 8.1 of the Plan authorizes the Company to amend the Plan as it deems
appropriate from time to time; and

         

        WHEREAS,
as part of the Economic Growth and Tax Relief Reconciliation Act of 2001
("EGTRRA"), Congress amended Section 401(a)(31) of the Code to require that,
absent an affirmative election by a participant, any mandatory distributions
made from the Plan must be directly transferred to an individual retirement
account ("IRA") of the Nan Administrator's choosing (the "Automatic Rollover
Rule"); and

         

        WHEREAS,
the Company now wishes to amend the Plan to provide for mandatory distributions
and to implement the Automatic Rollover Rule for vested account balances valued
at $5,000 or less, but more than $1,000.

         

        NOW,
THEREFORE, the Plan is hereby amended as follows:

         

        1.
Notwithstanding any provision of the Plan to the contrary, effective as of March
28, 2005,
Section 7.5 of the Plan is amended by adding the following at the end of
subparagraph (c):

         

        If the
Vested portion of a Terminated Participant's Combined Account does not exceed
$1,000, the Administrator shall direct the Trustee to cause the entire Vested
benefit to be paid to such Participant in a single lump sum. If the Vested
portion of a Terminated Participant's Combined Account is greater than $1,000,
and the Participant does not elect to have such distribution paid directly to an
eligible retirement plan specified by the Participant in a direct rollover or to
receive the distribution directly in accordance with Section 7.5, then the
Administrator will pay the distribution in a direct rollover to an individual
retirement plan designated by the Administrator.

         

        2. Except
as hereinabove amended the Plan shall remain in full force and
effect.

         

        IN
WITNESS WHEREOF, the Company has caused this Amendment Number Three to be
executed on this 15th day of June, 2005.

         

        CAPITALBANK

         

         

        By: Wayne Q. Justesen

        Title:
Compensation Committee,
Chairman

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

        AMENDMENT
NUMBER FOUR TO

        COMMUNITY
CAPITAL CORPORATION EMPLOYEE STOCK OWNERSHIP PLAN

        (WITH
CODE SECTION 401(k) PROVISIONS)

         

        WHEREAS,
CapitalBank, a corporation organized and existing under the laws of South
Carolina (the "Company"), previously established and currently maintains the
Community Capital Corporation Employee Stock Ownership Plan (with Code Section
401(k) Provisions) (the "Plan") for the benefit of eligible employees of the
Company and any Participating Employer with respect to whom the Company has
consented to the adoption of the Plan; and

         

        WHEREAS,
Section 8.1 of the Plan authorizes the Company to amend the Plan as it deems
appropriate from time to time; and

         

        WHEREAS,
when the Plan was amended and restated effective December 31, 2001, the
definition of Compensation included in the Plan inadvertently was changed;
and

         

        WHEREAS,
in order to facilitate administration, the Company now wishes to amend the Plan
effective December 1, 2006 to incorporate the prior definition of
Compensation.

         

        NOW,
THEREFORE, the Plan is hereby amended as follows:

         

        1.
Notwithstanding any provision of the Plan to the contrary, effective as of
December
1, 2006, Section 1.12 of the Plan is amended by deleting that Section in its
entirety and inserting in its place the following:

         

        1.12
"Compensation" with respect to any Participant means such Participant's wages,
salaries, and fees from professional services and other amounts received
(without regard to whether or not an amount is paid in cash) for personal
service actually rendered in the course of employment with the Employer
maintaining the Plan to the extent that the amounts are includable in gross
income (or to the extent amounts deferred at the election of the Participant
would be includible in gross income but for the rules of Section 402(e)(3),
402(h)(1)(B), 402(k), 125(a), 132(f)(4), or 457(b)), including, but not limited
to, commissions paid to salesmen, compensation for services on the basis of a
percentage of profits, commission on insurance premiums, tips, bonuses, fringe
benefits and reimbursements or other expense allowances under a nonaccountable
plan as described in Treasury Regulation 1.62-2(c), and excluding the
following:

         

        
          
            	
                  	
                    (a)

                  	
                    Employer
      contributions to a plan of deferred compensation which are not includable
      in the Participant's gross income for the taxable year in which
      contributed, or employer contributions under a simplified employee pension
      plan to the extent such contributions are deductible by the Participant,
      or any distributions from a plan of deferred
      compensation;

                  

          

        

         

        
          
            	
                  	
                    (b)

                  	
                    Amounts
      realized from the exercise of a nonqualified stock option, or when
      restricted stock or other property held by the Participant either becomes
      freely transferable or is no longer subject to a substantial risk of
      forfeiture;

                  

          

        

        
           

          
            
               

            

            
               

              
                

              

            

            
               

            

          

          
            	
                  	
                    (c)

                  	
                    Amounts
      realized from the sale, exchange, or other disposition of stock acquired
      under a qualified stock
option;

                  

          

        

         

        
          
            	
                  	
                    (d)

                  	
                    Other
      amounts which receive special tax benefits, such as group- term
      life insurance (but only to the extent that the premiums are not
      includible in the gross income of the Participant and are not salary
      reduction amounts that are described in Section 125);
      and

                  

          

        

         

        
          
            	
                  	
                    (e)

                  	
                    Other
      items of remuneration that are similar to any of the items listed above in
      subsections (a) through
(d).

                  

          

        

         

        For
a Participant's initial year of participation, Compensation shall be recognized
for the entire Plan Year.

         

        Compensation
in excess of the amount provided in Section 401(a)(17)(A) of the Code ($220,000
for 2004) shall be disregarded for all purposes other than for purposes of
salary deferral elections pursuant to Section 4.2. Such amount shall be adjusted
for increases in the cost of living in accordance with Code Section
401(a)(17)(B), except that the dollar increase in effect on January 1 of any
calendar year shall be effective for the Plan Year beginning with or within such
calendar year. For any short Plan Year the Compensation limit shall be an amount
equal to the Compensation limit for the calendar year in which the Plan Year
begins multiplied by the ratio obtained by dividing the number of full months in
the short Plan Year by twelve (12).

         

        For
Plan Years beginning after December 31, 1996, for purposes of determining
Compensation, the family member aggregation rules of Code Section 401(a)(17) and
Code Section 414(q)(6) (as in effect prior to the Small Business Job Protection
Act of 1996) are eliminated.

         

        For
purposes of this Section, if the Plan is a plan described in Code Section 413(c)
or 414(0 (a plan maintained by more than one Employer), the limitation applies
separately with respect to the Compensation of any Participant from each
Employer maintaining the Plan.

         

        2.  Notwithstanding
any provision of the Plan to the contrary, effective as of December 1, 2006,
Section 4.1 of the Plan is amended by adding the following paragraph at the end
thereof:

         

        Notwithstanding
any provision of this Plan to the contrary, for purposes of determining the
amount to be contributed to the Plan under this Section 4.1, Compensation shall
be determined by excluding fringe benefits, reimbursements or other expense
allowances under a nonaccountable plan as described in Treasury Regulation
1.62-2(c), and any other non-cash remuneration received.

         

        3.  Notwithstanding
any provision of the Plan to the contrary, effective as of December
1, 2006,
Section 4.2 of the Plan is amended by adding the following at the end of
subsection (a):

         

        
          
             

          

          
            2

            
              

            

          

          
             

          

        

        In
addition, for purposes of this Section, Compensation shall be determined by
excluding fringe benefits, reimbursements or other expense allowances under a
nonaccountable plan as described in Treasury Regulation 1.62-2(c), and any other
non-cash remuneration received.

         

        4.  Notwithstanding
any provision of the Plan to the contrary, effective as of December 1, 2006,
Section 4.4 of the Plan is amended by adding the following subsection (o) at the
end thereof:

         

        For
purposes of allocating Employer contributions, forfeitures and earnings under
this Section 4.4, Compensation shall be determined by excluding fringe benefits,
reimbursements or other expense allowances under a nonaccountable plan as
described in Treasury Regulation 1.62­2(c), and any other non-cash
remuneration received.

         

        5.  Except
as hereinabove amended the Plan shall remain in full force and
effect.

         

        IN
WITNESS WHEREOF, the Company has caused this Amendment Number Four to be
executed on this 1st day of December, 2006.

         

        CAPITALBANK

         

        By:  /s/ Wayne Q.
Justesen

        Wayne
Q. Justesen

        Compensation
Committee Chairman

         

        
          
             

          

          
            3

            
              

            

          

          
             

          

        

         

        FINAL
401(k)/401(m) REGULATIONS AMENDMENT

         

        ARTICLE
I

        PREAMBLE

         

        
          	
                  1.1

                	
                  Adoption
      and effective date of amendment. This Amendment to the Community
      Capital Corporation
      Employee Stock Ownership Plan (with Code Section 401(k) Provisions) (the
      "Plan") is adopted by CapitalBank (the "Employer") to reflect certain
      provisions of the Final Regulations under Code Sections 401(k) and 401(m)
      that were published in the Federal Register on December 29, 2004 and any
      amendments, substitutions, deletions or additions thereto (hereinafter
      referred to as the "Final 401(k) Regulations"). This Amendment is intended
      as good faith compliance with the requirements of these provisions. This
      Amendment shall be effective with respect to Plan Years beginning on and
      after January 1, 2006 unless the Employer otherwise elects in Section 2.1
      below.

                

        

         

        
          	
                  1.2

                	
                  Supersession
      of inconsistent provisions. This Amendment shall supersede the
      provisions of the Plan
      to the extent those provisions are inconsistent with the provisions of
      this Amendment, and the Final 401(k) Regulations shall supersede this
      Amendment to the extent these provisions are inconsistent with the Final
      401(k) Regulations. Notwithstanding any provision of the Plan to the
      contrary, effective as of the effective date set forth herein, the Plan
      shall be administered in accordance with the Final 401(k) Regulations and
      hereby is amended as needed to reflect those rules and the Employer
      Elections as set forth in Article
II.

                

        

         

        
          	
                  1.3

                	
                  Application
      of provisions. Certain provisions of this Amendment relate to
      elective deferrals of a 401(k)
      plan; if the Plan to which this Amendment relates is not a 401(k) plan,
      then those provisions of this Amendment do not apply. Certain provisions
      of this Amendment relate to matching contributions and for after-tax
      employee contributions subject to Code Section 401(m); if the Plan to
      which this Amendment relates is not subject to Code Section 401(m), then
      those provisions of this Amendment do not
apply.

                

        

         

        ARTICLE
II

        EMPLOYER
ELECTIONS

         

        
          	
                  2.1

                	
                  Effective
      Date. This Amendment is effective, and the Plan shall implement the
      provisions of the Final 401(k)
      Regulations, with respect to Plan Years beginning on and after January 1,
      2006 unless the Employer elects an earlier effective date in either a. or
      b. [check
      the box beside either a.
      or b. if an earlier effective date is
      desired]:

                

        

         

        
          
            	
                  	
                    a
      [ ]

                  	
                    The Amendment is
      effective and the Final 401(k) Regulations apply to Plan Years beginning
      on and after January 1, 2005 (2005 and subsequent Plan
      Years).

                  

          

        

         

        
          
            	
                  	
                    b
      [ ]

                  	
                    The
      Amendment is effective and the Final 401(k) Regulations apply to Plan
      Years ending after December 29, 2004 (2004 and subsequent Plan
      Years).

                  

          

        

         

        
          	
                  2.2

                	
                  ADP
      and ACP Test Rules. The Plan shall satisfy the Actual Deferral
      Percentage ("ADP") test of Section 401(k)(3)
      described in Section 1.401(k)-2 of the Final 401(k) Regulations and the
      Actual Contribution Percentage ("ACP") test of Section 401(m)(2) described
      in Section 1.401(m)-2 of the Final 401(k) Regulations, and the foregoing
      provisions are incorporated herein by reference, unless the Employer
      elects the ADP Test Safe Harbor provisions and/or the ACP Test Safe Harbor
      provisions, each as defined herein, set forth in a. and b. below [check
      the box beside
      both a. and b. if you desire to qualify for the ADP/ACP Test Safe Harbors
      and avoid this discrimination
      testing]:

                

        

         

        
          
             

          

          
            1

            
              

            

          

          
             

          

        

        
          
            	
                  	
                    a
      [ ] 

                  	
                    The Plan shall
      satisfy the ADP Test Safe Harbor of 401(k)(12) described in Section
      1.401(k)-3 of the Final 401(k) Regulations, which provisions are
      incorporated herein by reference and in which case Article IX of this
      Amendment shall apply. [Note:
      You cannot
      elect this ADP Test Safe Harbor if you wish to retain the allocation
      conditions for safe
      harbor employer
  contributions]

                  

          

        

         

        
          
            	
                  	
                    b
      [ ] 

                  	
                    The Plan shall
      satisfy the ACP Test Safe Harbor of Code Section 401(m)(11) described in
      Section 1.401(m)-3 of the Final 401(k) Regulations, which provisions are
      incorporated herein by reference and in which case the provisions of
      Article IX of this Amendment shall apply. [Note:
      You cannot elect this ADP Test Safe Harbor if you wish to retain the
      allocation
      conditions for safe harbor employer
      contributions.]

                  

          

        

         

        
          	
                  2.3

                	
                  Testing
      Method. Notwithstanding any provision of the Plan to the contrary,
      for purposes of determining the ADP
      and the ACP for Non-Highly Compensated Employees ("NHCE"), the Plan shall
      use current year data (the current year testing method), which also is
      used for purposes of determining the ADP and ACP for Highly Compensated
      Employees ("HCE"), unless the Employer elects to use prior year data (the
      prior year testing method) for purposes of determining the ADP and ACP for
      NHCE by checking a. below [check
      a. if the prior year testing method is desired
      for both the ADP and ACP tests; check b if the Plan will use a different
      testing method for
      each of the ADP and ACP
  tests]:

                

        

         

        
          
            	
                  	
                    a.
      [X]

                  	
                    The Plan shall use
      the prior year testing method for purposes of determining the ADP and ACP
      for NHCE. The ADP and ACP for the first Plan Year that the prior year
      testing method is used shall be the ADP or ACP, respectively, for the
      eligible NHCE, unless the Employer elects to use 3% for the ADP and ACP
      for the NHCE for the first Plan Year that the prior year testing method is
      used by checking i. below [check
      i. if 3% shall be used
      for the first Plan
Year]:

                  

          

        

         

        
          
            	
                    
                    

                  	
                    i [ ]

                  	
                    3%
      shall be used as the NHCE ADP and ACP for the first Plan Year that the
      prior year testing method is
used.

                  

          

        

         

        
          
            	
                  	
                    b.[
      ] 

                  	
                    For
      purposes of determining the ADP and ACP for NHCE, the Plan shall use the
      current year
      testing method for the[insert
      ADP or ACP] test and the prior year testingmethod
      for the[insert
      ADP or ACP] test, in which case Section 5.4 and Section
      7.4 of this
      Amendment shall apply. For the first Plan Year that prior year testing is
      used, the ADP or ACP (whichever is being tested using prior year data) for
      the eligible NHCE shall be used as the ADP or ACP for the NHCE, unless the
      Employer elects to use 3% for this purpose by checking i. below [check
      i. if 3% shall be used for the first Plan
      Year]:

                  

          

        

         

        
          
            	
                    
                    

                  	
                    i
      [ ]

                  	
                    3% shall be used as
      the NHCE ADP or ACP (whichever is being tested using prior year data) for
      the first Plan Year that the prior year testing method is
      used.

                  

          

        

         

        
          	
                  2.4

                	
                  Type
      of ACP Test Contribution. If the Employer elected a. and/or b. in
      Section 2.2, the Employer shall
      contribute to the Plan on behalf of each eligible employee a qualified
      nonelective contribution equal to at least 3 percent of the eligible
      employee's safe harbor compensation in order to satisfy the ADP Test Safe
      Harbor and/or the ACP Test Safe Harbor, unless the Employer elects to make
      a safe harbor matching contribution set forth in a. below [check
      the box beside a. if you desire to satisfy the safe harbors by making a
      matching contribution instead of a qualified nonelective
      contribution]:

                

        

         

        
          
            	
                  	
                    a.
      [ ]

                  	
                    The Employer shall
      make a safe harbor matching contribution equal to 100% of elective
      contributions up to the first 3% of the employee's safe harbor
      compensation and 50% of elective contributions exceeding 3%, but not
      exceeding 5% of the employee's safe harbor compensation
      or using an enhanced matching formula that provides matching contributions
      at least as generous as the foregoing and otherwise complies with the
      requirements of
      the Final Treasury
  Regulations.

                  

          

        

         

        
          
             

          

          
            2

            
              

            

          

          
             

          

        

        ARTICLE
III

        GENERAL
RULES

         

        
          	
                  3.1

                	
                  Deferral
      elections. A cash or deferred arrangement ("CODA") is an
      arrangement under which eligible
      Employees may make elective deferral elections. Such elections cannot
      relate to compensation that is currently available prior to the adoption
      or effective date of the CODA. In addition, except for occasional, bona
      fide administrative considerations, contributions made pursuant to such an
      election cannot precede the earlier of (1) the performance of services
      relating to the contribution and (2) when the compensation that is subject
      to the election would be currently available to the Employee in the
      absence of an election to defer.

                

        

         

        
          	
                  3.2

                	
                  Vesting
      provisions. Elective Contributions are always fully vested and
      nonforfeitable. The Plan shall
      disregard Elective Contributions in applying the vesting provisions of the
      Plan to other contributions or benefits under Code Section 411(a)(2).
      However, the Plan shall otherwise take a participant's Elective
      Contributions into account in determining the Participant's vested
      benefits under the Plan. Thus, for example, the Plan shall take Elective
      Contributions into account in determining whether a Participant has a
      nonforfeitable right to contributions under the Plan for purposes of
      forfeitures, and for applying provisions permitting the repayment of
      distributions to have forfeited amounts restored, and the provisions of
      Code Sections 410(a)(5)(D)(iii) and 411(a)(6)(D)(iii) permitting a plan to
      disregard certain service completed prior to breaks-in­service
      (sometimes referred to as "the rule of
parity").

                

        

         

        
          	
                  3.3

                	
                  Distribution
      Limitation. Notwithstanding any provision of the Plan to the
      contrary, Elective Contributions
      shall not be distributable if, in connection with a change of employment,
      the Participant's new employer maintains this Plan with respect to the
      Participant. Instead, Elective Contributions are distributable only upon a
      severance from employment, meaning that the Participant ceased to be an
      Employee of the employer maintaining the Plan, in addition to the other
      distribution events set forth in the Plan that are permitted by the Final
      401(k) Regulations.

                

        

         

        ARTICLE
IV

        HARDSHIP
DISTRIBUTIONS

         

        
          	
                  4.1

                	
                  Applicability.
      The provisions of this Article IV
      apply if the Plan provides for hardship distributions
      upon satisfaction of the deemed immediate and heavy financial need
      standards set forth in Regulation Section 1.401(k)-1(dX2)(iv)(A) as in
      effect prior to the issuance of the Final 401(k)
    Regulations.

                

        

         

        
          	
                  4.2

                	
                  Hardship
      events. A distribution under the Plan is hereby deemed to be on
      account of an immediate
      and heavy financial need of an Employee if the distribution is for one of
      the following or any other item permitted under Regulation Section
      1.401(k)-1(d)(3)(iii)(B):

                

        

         

        
          
            	
                  	
                    (a)

                  	
                    Expenses
      for (or necessary to obtain) medical care that would be deductible
      under Code Section 213(d) (determined without regard to whether the
      expenses exceed 7.5% of adjusted gross
income);

                  

          

        

         

        
          
            	
                  	
                    (b)

                  	
                    Costs
      directly related to the purchase of a principal residence for the Employee
      (excluding mortgage
payments);

                  

          

        

         

        
          
            	
                  	
                    (c)

                  	
                    Payment
      of tuition, related educational fees, and room and board expenses, for up
      to the 3 next
      twelve (12) months of post-secondary education for the Employee, the
      Employee's spouse, children, or dependents (as defined in Code Section
      152, and, for taxable years beginning on or after January 1, 2005, without
      regard to Code Section 152(b)(1), (b)(2), and
  (d)(1)(B));

                  

          

        

         

        
          
             

          

          
            3

            
              

            

          

          
             

          

        

        
          
            	
                  	
                    (d)

                  	
                    Payments
      necessary to prevent the eviction of the Employee from the Employee's
      principal residence or foreclosure on the mortgage on that
      residence;

                  

          

        

         

        
          
            	
                  	
                    (e)

                  	
                    Payments
      for burial or funeral expenses for the Employee's deceased parent, spouse,
      children or dependents (as defined in Code Section 152, and, for taxable
      years beginning on or after January 1, 2005, without regard to Code
      Section 152(d)(1)(B)); or

                  

          

        

         

        
          
            	
                  	
                    (f)

                  	
                    Expenses
      for the repair of damage to the Employee's principal residence that would
      qualify for the casualty deduction under Code Section 165 (determined
      without regard to whether the loss exceeds 10% of adjusted gross
      income).

                  

          

        

         

        
          	
                  4.3

                	
                  Reduction
      of Code Section 402(g) limit following hardship distribution. If
      the Plan provides for hardship
      distributions upon satisfaction of the safe harbor standards set forth in
      Regulation Sections 1.401(k)-1(d)(3)(iii)(B) (deemed immediate and heavy
      financial need) and 1.401(k)-1(d)(3)(iv)(E) (deemed necessary to satisfy
      immediate need), then there shall be no reduction in the maximum amount of
      elective deferrals that a Participant may make pursuant to Code Section
      402(g) solely because of a hardship distribution made by this Plan or any
      other plan of the Employer.

                

        

         

        ARTICLE
V

        ACTUAL
DEFERRAL PERCENTAGE (ADP) TEST

         

        
          	
                  5.1

                	
                  Targeted
      contribution limit. Qualified Nonelective Contributions (as defined
      in Regulation Section
      1.401(k)-6) cannot be taken into account in determining the Actual
      Deferral Ratio ("ADR") for a Plan Year for an NHCE to the extent such
      contributions exceed the product of that NHCE's Code Section 414(s)
      compensation and the greater of five percent (5%) or two (2) times the
      Plan's "representative contribution rate." Any Qualified Nonelective
      Contribution taken into account under an ACP test under Regulation Section
      1.401(m)-2(a)(6) (including the determination of the representative
      contribution rate for purposes of Regulation Section
      1.401(m)-2(a)(6)(v)(B)), is not permitted to be taken into account for
      purposes of this Section (including the determination of the
      "representative contribution rate" under this Section). For purposes of
      this Section:

                

        

         

        
          
            	
                  	
                    (a)

                  	
                    The
      Plan's "representative contribution rate" is the lowest "applicable
      contribution rate" of
      any eligible NHCE among a group of eligible NHCEs that consists of half of
      all eligible
      NHCEs for the Plan Year (or, if greater, the lowest "applicable
      contribution rate" of
      any eligible NHCE who is in the group of all eligible NHCEs for the Plan
      Year and who
      is employed by the Employer on the last day of the Plan Year),
      and

                  

          

        

         

        
          
            	
                  	
                    (b)

                  	
                    The
      "applicable contribution rate" for an eligible NHCE is the sum of the
      Qualified Matching Contributions (as defined in Regulation Section
      1.401(k)-6) taken into account in determining the ADR for the eligible
      NHCE for the Plan Year and the Qualified Nonelective Contributions made
      for the eligible NHCE for the Plan Year, divided by the eligible NHCE's
      Code Section 414(s) compensation for the same
  period.

                  

          

        

         

        Notwithstanding
the above, Qualified Nonelective Contributions that are made in connection with
an
Employer's obligation to pay prevailing wages under the Davis-Bacon Act (46
Stat. 1494), Public
Law 71-798, Service Contract Act of 1965 (79 Stat. 1965), Public Law 89-286, or
similar legislation
can be taken into account for a Plan Year for an NHCE to the extent such
contributions
do not exceed 10 percent (10%) of that NHCE's Code Section 414(s)
compensation.

         

        
          
             

          

          
            4

            
              

            

          

          
             

          

        

        Qualified
Matching Contributions may only be used to calculate an ADR to the extent that
such Qualified Matching Contributions are matching contributions that are not
precluded from being taken into account under the ACP test for the Plan Year
under the rules of Regulation Section 1.401(m)-2(aX5Xii) and as set forth in
Section 7.1.

         

        
          	
                  5.2

                	
                  Limitation
      on QNECs and QMACs. Qualified Nonelective Contributions and
      Qualified Matching Contributions
      cannot be taken into account to determine an ADR to the extent such
      contributions are taken into account for purposes of satisfying any other
      ADP test, any ACP test, or the requirements of Regulation Section
      1.401(k)-3, 1.401(m)-3, or 1.401(k)-4 Thus, for example, matching
      contributions that are made pursuant to Regulation Section 1.401(k)-3(c)
      cannot be taken into account under the ADP test. Similarly, if a plan
      switches from the current year testing method to the prior year testing
      method pursuant to Regulation Section 1.401(k)-2(c), Qualified Nonelective
      Contributions that are taken into account under the current year testing
      method for a year may not be taken into account under the prior year
      testing method for the next year.

                

        

         

        
          	
                  5.3

                	
                  ADR
      of HCE if multiple plans. The Actual Deferral Ratio (ADR) of any
      Participant who is a Highly
      Compensated Employee (HCE) for the Plan Year and who is eligible to have
      Elective Contributions (as defined in Regulation Section 1.401(k)-6) (and
      Qualified Nonelective Contributions and/or Qualified Matching
      Contributions, if treated as Elective Contributions for purposes of the
      ADP test) allocated to such Participant's accounts under two (2) or more
      cash or deferred arrangements described in Code Section 401(k), that are
      maintained by the same Employer, shall be determined as if such Elective
      Contributions (and, if applicable, such Qualified Nonelective
      Contributions and/or Qualified Matching Contributions) were made under a
      single arrangement. If an HCE participates in two or more cash or deferred
      arrangements of the Employer that have different Plan Years, then all
      Elective Contributions made during the Plan Year being tested under all
      such cash or deferred arrangements shall be aggregated, without regard to
      the plan years of the other plans. However, for Plan Years beginning
      before the effective date of this Amendment, if the plans have different
      Plan Years, then all such cash or deferred arrangements ending with or
      within the same calendar year shall be treated as a single cash or
      deferred arrangement. Notwithstanding the foregoing, certain plans shall
      be treated as separate if mandatorily disaggregated under the Regulations
      of Code Section 401(k).

                

        

         

        
          	
                  5.4

                	
                  Plans
      using different testing methods for the ADP and ACP test. Except as
      otherwise provided in this
      Section, the Plan may use the current year testing method or prior year
      testing method for the ADP test for a Plan Year without regard to whether
      the current year testing method or prior year testing method is used for
      the ACP test for that Plan Year. However, if different testing methods are
      used, then the Plan cannot use:

                

        

         

        
          
            	
                  	
                    (a)

                  	
                    The
      recharacterization method of Regulation Section 1.401(k)-2(b)(3) to
      correct excess contributions for a Plan
Year,

                  

          

        

         

        
          
            	
                  	
                    (b)

                  	
                    The
      rules of Regulation Section 1.401(m)-2(a)(6)(ii) to take Elective
      Contributions into account under the ACP test (rather than the ADP test);
      or

                  

          

        

         

        
          
            	
                  	
                    (c)

                  	
                    The
      rules of Regulation Section 1.401(k)-2(a)(6)(v) to take Qualified Matching
      Contributions into account under the ADP test (rather than the ACP
      test).

                  

          

        

         

        
          
             

          

          
            5

            
              

            

          

          
             

          

        

        ARTICLE
VI

        ADJUSTMENT
TO ADP TEST

         

        
          	
                  6.1

                	
                  Distribution
      of Income attributable to Excess Contributions. Distributions of
      Excess Contributions
      must be adjusted for income (gain or loss), including an adjustment for
      income for the period between the end of the Plan Year and the date of the
      distribution (the "gap period"). The Administrator has the discretion to
      determine and allocate income using any of the methods set forth
      below:

                

        

         

        
          	
                	
                  (a)

                	
                  Reasonable
      method of allocating income. The Administrator may use any
      reasonable method
      for computing the income allocable to Excess Contributions, provided that
      the method does not violate Code Section 401(aX4), is used consistently
      for all Participants and for all corrective distributions under the Plan
      for the Plan Year, and is used by the Plan for allocating income to
      Participant's accounts. A Plan will not fail to use a reasonable method
      for computing the income allocable to Excess Contributions merely because
      the income allocable to Excess Contributions is determined on a date that
      is no more than seven (7) days before the
  distribution

                

        

         

        
          	
                	
                  (b)

                	
                  Alternative
      method of allocating income. The Administrator may allocate income
      to Excess
      Contributions for the Plan Year by multiplying the income for the Plan
      Year allocable to the Elective Contributions and other amounts taken into
      account under the ADP test (including contributions made for the Plan
      Year), by a fraction, the numerator of which is the Excess Contributions
      for the Employee for the Plan Year, and the denominator of which is the
      sum of the:

                

        

         

        
          
            	
                  	
                    (1)

                  	
                    Account
      balance attributable to Elective Contributions and other amounts
      taken
      into
      account under the ADP test as of the beginning of the Plan Year,
      and

                  

          

        

         

        
          
            	
                  	
                    (2)

                  	
                    Any
      additional amount of such contributions made for the Plan
      Year.

                  

          

        

         

        
          	
                	
                  (c)

                	
                  Safe
      harbor method of allocating gap period income. The Administrator
      may use the safe harbor
      method in this paragraph to determine income on Excess Contributions for
      the gap period. Under this safe harbor method, income on Excess
      Contributions for the gap period is equal to ten percent (10%) of the
      income allocable to Excess Contributions for the Plan Year that would be
      determined under paragraph (b) above, multiplied by the number of calendar
      months that have elapsed since the end of the Plan Year. For purposes of
      calculating the number of calendar months that have elapsed under the safe
      harbor method, a corrective distribution that is made on or before the
      fifteenth (15th) day of a month is treated as made on the last day of the
      preceding month and a distribution made after the fifteenth day of a month
      is treated as made on the last day of the
month.

                

        

         

        
          	
                	
                  (d)

                	
                  Alternative
      method for allocating Plan Year and gap period income. The
      Administrator may
      determine the income for the aggregate of the Plan Year and the gap
      period, by applying the alternative method provided by paragraph (b) above
      to this aggregate period. This is accomplished by (1) substituting the
      income for the Plan Year and the gap period, for the income for the Plan
      Year, and (2)
      substituting the amounts taken into account under the ADP test for
      the Plan Year and the gap period, for the amounts taken into account under
      the ADP test for the Plan Year in determining the fraction that is
      multiplied by that income.

                

        

         

        
          	
                  6.2

                	
                  Corrective
      contributions. If a failed ADP test is to be corrected by making an
      Employer contribution,
      then the
      provisions of the Plan for the corrective contributions shall be
      applied by limiting
      the contribution made on behalf of any NHCE pursuant to such provisions to
      an amount that
      does not exceed the targeted contribution limits of Section 5.1 of this
      Amendment, or in the case of a corrective contribution that is a Qualified
      Matching Contribution, the targeted contribution limit of Section 7.1 of
      this Amendment.

                

        

         

        
          
             

          

          
            6

            
              

            

          

          
             

          

        

        ARTICLE
VII

        ACTUAL
CONTRIBUTION PERCENTAGE (ACP) TEST

         

        
          	
                  7.1

                	
                  Targeted
      matching contribution limit. A matching contribution with respect
      to an Elective Contribution
      for a Plan Year is not taken into account under the ACP test for an NHCE
      to the extent it exceeds the greatest
of:

                

        

         

        
          
            	
                  	
                    (a)

                  	
                    five
      percent (5%) of the NHCE's Code Section 414(s) compensation for the Plan
      Year;

                  

          

        

         

        
          	
                	
                  (b) 

                	
                  the
      NHCE's Elective Contributions for the Plan Year;
  and

                

        

         

        
          
            	
                  	
                    (c)

                  	
                    the
      product of two (2) times the Plan's "representative matching rate" and the
      NHCE's Elective Contributions for the Plan
Year.

                  

          

        

         

        For
purposes of this Section, the Plan's "representative matching rate" is the
lowest "matching rate" for any eligible NHCE among a group of NHCEs that
consists of half of all eligible NHCEs in the Plan for the Plan Year who make
Elective Contributions for the Plan Year (or, if greater, the lowest "matching
rate" for all eligible NHCEs in the Plan who are employed by the Employer on the
last day of the Plan Year and who make Elective Contributions for the Plan
Year).

         

        For
purposes of this Section, the "matching rate" for an Employee generally is the
matching contributions made for such Employee divided by the Employee's Elective
Contributions for the Plan Year. If the matching rate is not the same for all
levels of Elective Contributions for an Employee, then the Employee's "matching
rate" is determined assuming that an Employee's Elective Contributions are equal
to six percent (6%) of Code Section 414(s) compensation.

         

        If the
Plan provides a match with respect to the sum of the Employee's after-tax
Employee contributions and Elective Contributions, then for purposes of this
Section, that sum is substituted for the amount of the Employee's Elective
Contributions in subsections (b) & (c) above and in determining the
"matching rate," and Employees who make either after-tax Employee contributions
or Elective Contributions are taken into account in determining the Plan's
"representative matching rate." Similarly, if the Plan provides a match with
respect to the Employee's after-tax Employee contributions, but not Elective
Contributions, then for purposes of this subsection, the Employee's after-tax
Employee contributions are substituted for the amount of the Employee's Elective
Contributions in subsections (b) & (c) above and in determining the
"matching rate," and Employees who make after-tax Employee contributions are
taken into account in determining the Plan's "representative matching
rate."

         

        
          	
                  7.2

                	
                  Targeted
      QNEC limit. Qualified Nonelective Contributions (as defined in
      Regulation Section 1.401(k)-6)
      cannot be taken into account under the Actual Contribution Percentage
      (ACP) test for a
      Plan Year for an NHCE to the extent such contributions exceed the product
      of that NHCE's Code
      Section 414(s) compensation and the greater of five percent (5%) or two
      (2) times the Plan's
      "representative contribution rate." Any Qualified Nonelective Contribution
      taken into account
      under an Actual Deferral Percentage (ADP) test under Regulation Section
      1.401(k)- 2(a)(6)
      (including the determination of the "representative contribution rate" for
      purposes of Regulation
      Section 1.401(k)-2(a)(6)(iv)(B)) is not permitted to be taken into account
      for purposes of
      this Section (including the determination of the "representative
      contribution rate" for purposes of
      subsection (a) below). For purposes of this
      Section:

                

        

         

        
          
             

          

          
            7

            
              

            

          

          
             

          

        

        
          
            	
                    (a)

                  	
                    The
      Plan's "representative contribution rate" is the lowest "applicable
      contribution rate" of any eligible NHCE among a group of eligible NHCEs
      that consists of half of all eligible NHCEs for the Plan Year (or, if
      greater, the lowest "applicable contribution rate" of any eligible NHCE
      who is in the group of all eligible NHCEs for the Plan Year and who is
      employed by the Employer on the last day of the Plan Year),
      and

                  

          

        

         

        
          
            	
                    (b)

                  	
                    The
      "applicable contribution rate" for an eligible NHCE is the sum of the
      matching contributions (as defined in Regulation Section 1.401(m)-1(a)(2))
      taken into account in determining the ACR for the eligible NHCE for the
      Plan Year and the Qualified Nonelective Contributions made for that NHCE
      for the Plan Year, divided by that NHCE's Code Section 414(s) compensation
      for the Plan Year.

                  

          

        

         

        Notwithstanding
the above, Qualified Nonelective Contributions that are made in connection with
an Employer's obligation to pay prevailing wages under the Davis-Bacon Act (46
Stat. 1494), Public Law 71-798, Service Contract Act of 1965 (79 Stat. 1965),
Public Law 89-286, or similar legislation can be taken into account for a Plan
Year for an NHCE to the extent such contributions do not exceed 10 percent (10%)
of that NHCE's Code Section 414(s) compensation.

         

        
          
            	
                    7.3

                  	
                    ACR
      of HCE if multiple plans. The Actual Contribution Ratio ("ACR") for
      any Participant who is an HCE and who is eligible to have matching
      contributions or after-tax Employee contributions allocated to his or her
      account under two (2) or more plans described in Code Section 401(a), or
      arrangements described in Code Section 401(k) that are maintained by the
      same Employer, shall be determined as if the total of such contributions
      was made under each plan and arrangement. If an HCE participates in two
      (2) or more such plans or arrangements that have different plan years,
      then all matching contributions and after-tax Employee contributions made
      during the Plan Year being tested under all such plans and arrangements
      shall be aggregated, without regard to the plan years of the other plans.
      For plan years beginning before the effective date of this Amendment, all
      such plans and arrangements ending with or within the same calendar year
      shall be treated as a single plan or arrangement. Notwithstanding the
      foregoing, certain plans shall be treated as separate if mandatorily
      disaggregated under the Regulations of Code Section
  401(m).

                  

          

        

         

        
          	
                  7.4

                	
                  Plans
      using different testing methods for the ACP and ADP test. Except as
      otherwise provided in this
      Section, the Plan may use the current year testing method or prior year
      testing method for the ACP test for a Plan Year without regard to whether
      the current year testing method or prior year testing method is used for
      the ADP test for that Plan Year. However, if different testing methods are
      used, then the Plan cannot use:

                

        

         

        
          
            	
                  	
                    (a)

                  	
                    The
      recharacterization method of Regulation Section 1.401(k)-2(b)(3) to
      correct excess contributions for a Plan
Year;

                  

          

        

         

        
          
            	
                  	
                    (b)

                  	
                    The
      rules of Regulation Section 1.401(m)-2(a)(6)(ii) to take Elective
      Contributions into account under the ACP test (rather than the ADP test);
      or

                  

          

        

         

        
          
            	
                  	
                    (c)

                  	
                    The
      rules of Regulation Section 1.401(k)-2(a)(6) to take Qualified Matching
      Contributions into account under the ADP test (rather than the ACP
      test).

                  

          

        

         

        ARTICLE
VIII

        ADJUSTMENT
TO ACP TEST

         

        
          	
                  8.1

                	
                  Distribution
      of Income attributable to Excess Aggregate Contributions.
      Distributions of ExcessAggregate
      Contributions must be adjusted for income (gain or loss), including an
      adjustment for income for the period between the end of the Plan Year and
      the date of the distribution (the "gap period"). For the purpose of this
      Section, "income" shall be determined and allocated in accordance with the
      provisions of Section 6.1 of this Amendment, except that such Section
      shall be
      applied by substituting "Excess Contributions" with "Excess Aggregate
      Contributions" and by substituting amounts taken into account under the
      ACP test for amounts taken into account under the ADP
  test.

                

        

         

        
          
             

          

          
            8

            
              

            

          

          
             

          

        

        
          	
                  8.2

                	
                  Corrective
      contributions. If a failed ACP test is to be corrected by making an
      Employer contribution,
      then the provisions of the Plan for the corrective contributions shall be
      applied by limiting the contribution made on behalf of any NHCE pursuant
      to such provisions to an amount that does not exceed the targeted
      contribution limits of Sections 7.1 and 7.2 of this
    Amendment.

                

        

         

        ARTICLE
IX

        SAFE
HARBOR PLAN PROVISIONS

         

        
          	
                  9.1

                	
                  Applicability.
      The provisions of this Article IX apply if the Employer elected in Section
      2.2 to use
      the alternative method of satisfying the ADP test set forth in Code
      Section 401(k)(12) (ADP Test Safe Harbor) and/or the ACP test set forth in
      Code Section 401(mX11) (ACP Test Safe
Harbor).

                

        

         

        
          	
                  9.2

                	
                  Elimination
      of allocation conditions on safe harbor contributions. As of the
      effective date of this Amendment,
      (1) the Plan will be an ACP Test Safe Harbor plan, provided the ACP Test
      Safe Harbor requirements are met, and (2) the Plan will not impose any
      allocation conditions on safe harbor employer
    contributions.

                

        

         

        
          	
                  9.3

                	
                  Matching
      Catch-up contributions. If the Plan provides for ADP Test Safe
      Harbor matching contributions
      or ACP Test Safe Harbor matching contributions, then catch-up
      contributions (as defined in Code Section 414(v)) will be taken into
      account in applying such matching contributions under the
      Plan.

                

        

         

        
          	
                  9.4 

                	
                   Plan
      Year requirement. Except as provided in Regulation Sections
      1.401(k)-3(e) and 1.401(k)- 3(f),
      and below, the Plan will fail to satisfy the requirements of Code Section
      401(k)(12) and this Section for a Plan Year unless such provisions remain
      in effect for an entire twelve (12) month Plan
  Year.

                

        

         

        
          	
                  9.5

                	
                  Change
      of Plan Year. If a Plan has a short Plan Year as a result of
      changing its Plan Year, then the
      Plan will not fail to satisfy the requirements of Section 9.4 of this
      Amendment merely because the Plan Year has less than twelve (12) months,
      provided that:

                

        

         

        
          
            	
                  	
                    (a)

                  	
                    The
      Plan satisfied the ADP Test Safe Harbor and/or ACP Test Safe Harbor
      requirements for the immediately preceding Plan Year,
  and

                  

          

        

         

        
          
            	
                  	
                    (b)

                  	
                    The
      Plan satisfies the ADP Test Safe Harbor and/or ACP Test Safe Harbor
      requirements (determined without regard to Regulation Section
      1.401(k)-3(g)) for the immediately following Plan Year (or for the
      immediately following twelve (12) months if the immediately following Plan
      Year is less than twelve (12)
months).

                  

          

        

         

        
          	
                  9.6

                	
                  Timing
      of matching contributions. If the ADP Test Safe Harbor contribution
      being made to the Plan
      is a matching contribution (or any ACP Test Safe Harbor matching
      contribution) that is made separately with respect to each payroll period
      (or with respect to all payroll periods ending with or within each month
      or quarter of a Plan Year) taken into account under the Plan for the Plan
      Year, then safe harbor matching contributions with respect to any elective
      deferrals and/or after-tax employee contributions made during a Plan Year
      quarter must be contributed to the Plan by the last day of the immediately
      following Plan Year quarter.

                

        

         

        
          
             

          

          
            9

            
              

            

          

          
             

          

        

        
          	
                  9.7

                	
                  Exiting
      safe harbor matching. The Employer may amend the Plan during a Plan
      Year to reduce or eliminate
      prospectively any or all matching contributions under the Plan (including
      any ADP Test Safe Harbor matching contributions) provided: (a) the Plan
      Administrator provides a supplemental notice to the Participants which
      explains the consequences of the amendment, specifies the amendment's
      effective date, and informs Participants that they will have a reasonable
      opportunity to modify their cash or deferred elections and, if applicable,
      after-tax Employee contribution elections; (b) Participants have a
      reasonable opportunity (including a reasonable period after receipt of the
      supplemental notice) prior to the effective date of the amendment to
      modify their cash or deferred elections and, if applicable, after-tax
      Employee contribution elections; and (c) the amendment is not effective
      earlier than the later of: (i) thirty (30) days after the Plan
      Administrator gives supplemental notice; or (ii) the date the Employer
      adopts the amendment. An Employer which amends its Plan to eliminate or
      reduce any matching contribution under this Section, effective during the
      Plan Year, must continue to apply all of the ADP Test Safe Harbor and/or
      ACP Test Safe Harbor requirements of the Plan until the amendment becomes
      effective and also must apply for the entire Plan Year, using current year
      testing, the ADP test and the ACP
test.

                

        

         

        
          	
                  9.8

                	
                  Plan
      termination. An Employer may terminate the Plan during a Plan Year
      in accordance with Plan
      termination provisions of the Plan and this
  Section.

                

        

         

        
          
            	
                  	
                    (a)

                  	
                    Acquisition/disposition
      or substantial business hardship. If the Employer terminates the
      Plan resulting in a short Plan Year, and the termination is on account of
      an acquisition or disposition transaction described in Code Section
      410(b)(6XC), or if the termination is on account of the Employer's
      substantial business hardship within the meaning of Code Section 412(d),
      then the Plan remains an ADP Test Safe Harbor and/or ACP Test Safe Harbor
      Plan provided that the Employer satisfies the ADP Test Safe Harbor and/or
      ACP Test Safe Harbor provisions through the effective date of the Plan
      termination.

                  

          

        

         

        
          
            	
                  	
                    (b)

                  	
                    Other
      termination. If the Employer terminates the Plan for any reason
      other than as described in Section 9.7(a) above, and the termination
      results in a short Plan Year, the Employer must conduct the termination
      under the provisions of Section 9.7 above, except that the Employer need
      not provide Participants with the right to change their cash or deferred
      elections.

                  

          

        

         

        [SIGNATURE
PAGE FOLLOWS]

         

        
          
             

          

          
            10

            
              

            

          

          
             

          

        

        IN
WITNESS WHEREOF, the Employer has caused this Final 401(k)/401(m)
Regulations Amendment to be executed on this 19th day of
December, 2006 to be effective as of the effective date set forth
herein.

         

         

        EMPLOYER:

         

        CAPITALBANK

         

        By:
/s/ Wayne Q. Justesen

        Wayne
Q. Justesen

        Compensation Committee
Chairman

         

         

        
          
             

          

          
            11

            
              

            

          

          
             

          

        

         

        
          AMENDMENT
FOR THE FINAL 415 REGULATIONS

         

        ARTICLE
I

        PREAMBLE

         

        
          	
                  1.1

                	
                  Effective
      date of Amendment. This Amendment is effective for limitation years
      and plan years beginning on or after July 1, 2007, except
      as otherwise provided herein.

                

        

         

        
          	
                  1.2

                	
                  Superseding
      of inconsistent provisions. This Amendment supersedes the
      provisions of the Plan to the extent those provisions are inconsistent
      with the provisions of this Amendment, § 415 of the Internal Revenue Code
      of 1986, as amended from time to time (the "Code"), or the Treasury
      Regulations issued thereunder. Notwithstanding any provision of the Plan
      to the contrary, effective as of the effective date set forth herein, the
      Plan shall be administered in accordance with the final Treasury
      Regulations under § 415 of
      the Code that were published in the Federal Register on April 5, 2007 at
      72 F.R. 16878, as amended from time to time, and hereby is amended as
      needed to incorporate those rules and the Employer Elections as set forth
      in Article II.

                

        

         

        
          	
                  1.3

                	
                  Employer's
      election. The Employer adopts all Articles of this Amendment,
      except those Articles that the Employer specifically elects
      not to adopt.

                

        

         

        
          	
                  1.4

                	
                  Construction.
      Except as otherwise provided in this Amendment, any reference to
      "Section" in this Amendment refers only to sections
      within this Amendment, and is not a reference to the Plan. The Article and
      Section numbering in this Amendment is solely for purposes of this
      Amendment, and does not relate to any Plan article, section or other
      numbering designations.

                

        

         

        
          	
                  1.5

                	
                  Effect
      of restatement of Plan. If the Employer restates the Plan, then
      this Amendment shall remain in effect after such restatement unless
      the provisions in this Amendment are restated or otherwise become obsolete
      (e.g., if the Plan is restated onto a plan document which incorporates the
      final Code §415 Regulation
provisions).

                

        

         

        ARTICLE
II

        EMPLOYER
ELECTIONS

         

        The
Employer only needs to complete the questions in Section 2.2 in order to
override the default provisions set forth below. lithe Plan will use all of the
default provisions, then these questions should be skipped.

         

        
          	
                  2.1

                	
                  Default
      Provisions. Unless the Employer elects otherwise in Section 2.2,
      the following defaults will apply:

                

        

         

        
          
            	
                  	
                    a.

                  	
                    The
      provisions of the Plan setting forth the defmition of compensation for
      purposes of Code § 415 (hereinafter referred to as "415 Compensation"), as
      well as compensation for purposes of determining highly compensated
      employees pursuant to Code § 414(q) and for top-heavy purposes under Code
      § 416 (including the determination of key employees), shall be modified by
      (1) excluding payments for unused sick, vacation or other leave and
      payments from nonqualified unfunded deferred compensation plans (Amendment
      Section 32(b)), (2) excluding salary continuation payments for
      participants on military service (Amendment Section 3.2(c)), and (3)
      excluding salary continuation payments for disabled participants
      (Amendment Section 3.2(d)).

                  

          

        

         

        
          
            	
                  	
                    b.

                  	
                    The
      "first few weeks rule" does not apply for purposes of 415 Compensation
      (Amendment Section 3.3).

                  

          

        

         

        
          
            	
                  	
                    c.

                  	
                    The
      provision of the Plan setting forth the definition of compensation for
      allocation purposes (hereinafter referred to as "Plan Compensation") shall
      be modified to provide for the same
      adjustments to Plan Compensation (for all contribution types) that
      are made to 415 Compensation pursuant to this
  Amendment.

                  

          

        

         

        
          	
                  2.2

                	
                  In
      lieu of default provisions. In lieu of the default provisions
      above, the following apply: (select all that apply; if no selections are
      made,
      then the defaults apply)

                

        

         

        415
Compensation. (select all that apply):

        
          
            	
                    a.

                  	
                    [

                  	
                    ]

                  	
                    Include
      leave cashouts and deferred compensation (Section
  3.2(b))

                  
	
                    b.

                  	
                    [

                  	
                    ]

                  	
                    Include
      military continuation payments (Section 3.2(c))

                  
	
                    c.

                  	
                    [

                  	
                    ]

                  	
                    Include
      disability continuation payments (Section 3.2(d)):

                  
	 
      	 
      	 
      	
                    1.  [  
      ]  For Nonhighly Compensated Employees only

                  
	 
      	 
      	 
      	
                    2. 
      [   ]  For all participants and the salary
      continuation will continue for the following fixed or determinable
      period:

                  
	
                    d.

                  	
                    [

                  	
                    ]

                  	
                    Apply
      the administrative delay ("first few weeks") rule (Section
      3.3)

                  

          

        

         

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

        In
lieu of the default provisions (cont.)

         

        Plan
Compensation. (select all that apply):

         

        For each type of
contribution shown below, please indicate any changes you would like to make to
the definition of Plan Compensation. For example, if you maintain a 401(k) plan
and would like to include all post-severance compensation from the definition of
Plan Compensation for all types of contributions, you would check the box beside
"g." and also check the boxes beside "1." - "4." If instead, for example, you
want the default provisions to apply to nonelective profit sharing
contributions, but you want to include leave cashouts and deferred compensation
from Plan Compensation for all other purposes, you would check the box beside
"e." and "3." in that row. You also would check the box beside "i." and "1.",
"2.", and "4." in that row. For
all Plans other
than 401(k) plans, do not make any selections at "1." - "4." in the table
below.

         

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      	 	 	 	 	      
                                                                              Elective

                                                                              Deferrals

                                                                            	      
                                                                              Matching

                                                                            	      
                                                                              Nonelective

                                                                              Profit

                                                                              Sharing

                                                                            	      
                                                                              ADP

                                                                              Safe
      Harbor

                                                                              Nonelective

                                                                            
	
                                                                              e.

                                                                            	
                                                                              [

                                                                            	
                                                                              ]

                                                                            	
                                                                              Default
      provisions apply

                                                                            	
                                                                              1. [  
      ]

                                                                            	
                                                                              2.
      [  ]

                                                                            	
                                                                              3.
      [  ]

                                                                            	
                                                                              4.
      [  ]

                                                                            
	
                                                                              f.

                                                                            	
                                                                              [

                                                                            	
                                                                              ]

                                                                            	
                                                                              No
      change from existing Plan provisions

                                                                            	
                                                                              
                                                                                1. [  
      ]

                                                                              

                                                                            	
                                                                              2.
      [  ]

                                                                            	
                                                                              
                                                                                3.
      [  ]

                                                                              

                                                                            	
                                                                              4.
      [  ]

                                                                            
	
                                                                              g.

                                                                            	
                                                                              [

                                                                            	
                                                                              ]

                                                                            	
                                                                              Include
      all post-severance compensation

                                                                            	
                                                                              
                                                                                1. [  
      ]

                                                                              

                                                                            	
                                                                              2.
      [  ]

                                                                            	
                                                                              
                                                                                3.
      [  ]

                                                                              

                                                                            	
                                                                              4.
      [  ]

                                                                            
	
                                                                              h.

                                                                            	
                                                                              [

                                                                            	
                                                                              ]

                                                                            	
                                                                              Exclude
      post-severance regular pay

                                                                            	
                                                                              
                                                                                1. [  
      ]

                                                                              

                                                                            	
                                                                              2.
      [  ]

                                                                            	
                                                                              
                                                                                3.
      [  ]

                                                                              

                                                                            	
                                                                              4.
      [  ]

                                                                            
	
                                                                              i.

                                                                            	
                                                                              [

                                                                            	
                                                                              ]

                                                                            	
                                                                              Include
      leave cashouts and deferred compensation

                                                                            	
                                                                              
                                                                                1. [  
      ]

                                                                              

                                                                            	
                                                                              2.
      [  ]

                                                                            	
                                                                              
                                                                                3.
      [  ]

                                                                              

                                                                            	
                                                                              4.
      [  ]

                                                                            
	
                                                                              j.

                                                                            	
                                                                              [

                                                                            	
                                                                              ]

                                                                            	
                                                                              Include
      military continuation payments

                                                                            	
                                                                              
                                                                                1. [  
      ]

                                                                              

                                                                            	
                                                                              2.
      [  ]

                                                                            	
                                                                              
                                                                                3.
      [  ]

                                                                              

                                                                            	
                                                                              4.
      [  ]

                                                                            
	
                                                                              k.

                                                                            	
                                                                              [

                                                                            	
                                                                              ]

                                                                            	
                                                                              Include
      disability continuation payments:

                                                                            	
                                                                              
                                                                                1. [  
      ]

                                                                              

                                                                            	
                                                                              2.
      [  ]

                                                                            	
                                                                              
                                                                                3.
      [  ]

                                                                              

                                                                            	
                                                                              4.
      [  ]

                                                                            
	 	 	 	      
                                                                              a.
      [ ]
      For Nonhighly Compensated Employees only

                                                                            
	 	 	 	      
                                                                              b.
      [ ]
      For all participants and the salary continuation will continue for the
      following fixed or determinable
period:

                                                                            

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

        
           

        

        I.    [ 
 ]    Other ______________________________________________________________________
(describe)

         

        NOTE:
Elective Deferrals include Roth Elective Deferrals, Matching includes
QMACs, and Nonelective includes QNECs unless
specified otherwise. ADP safe harbor matching contributions are subject to the
provisions for Employer matching contributions.

         

        Plan
Compensation Special Effective Date. The definition of Plan Compensation
is modified as set forth herein effective as of the same date as the 415
Compensation change is effective unless otherwise
specified:

        m.(enter
the effective date, which should not be earlier than the first day of the Plan
Year during which
this Amendment is signed (e.g., January 1, 2007 for calendar year plan years if
this Amendment is signed during 2007))

         

        ARTICLE
III

        FINAL
SECTION 415 REGULATIONS

         

        
          	
                  3.1

                	
                  Effective
      date. The provisions of this Article III shall apply to limitation
      years beginning on and after July 1,
  2007.

                

        

         

        
          	
                  3.2

                	
                  415
      Compensation paid after severance from employment. 415 Compensation
      shall be adjusted, as set forth herein and as otherwise
      elected in Article II, for the following types of compensation paid after
      a Participant's severance from employment with the Employer maintaining
      the Plan (or any other entity that is treated as the Employer pursuant to
      Code § 414(b), (c), (m) or (o)). However, amounts described in subsections
      (a) and (b) below may only be included in 415 Compensation to the extent
      such amounts are paid by the later of 2 1/2 months after severance from
      employment or by the end of the limitation year that includes the
      date
      of such severance from employment. Any other payment of compensation paid
      after severance of employment that is not described in the following types
      of compensation is not considered 415 Compensation within the meaning of
      Code § 415(c)(3), even if payment is made within the time period specified
      above.

                

        

         

        
          	
                	
                  (a)

                	
                  Regular
      pay. 415 Compensation shall include regular pay after severance of
      employment if:

                

        

         

        
          	
                	
                  (1) 

                	
                   The
      payment is 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

                

        

         

        
          	
                	
                  (2) 

                	
                   The
      payment would have been paid to the participant prior to a severance from
      employment if the participant had continued in employment with the
      Employer.

                

        

         

        
          
             

          

          
            2

            
              

            

          

          
             

          

        

        
          	
                	
                  (b) 

                	
                   Leave
      cashouts and deferred compensation. Leave cashouts shall be excluded from
      415 Compensation, unless otherwise elected in Section 2.2 of this
      Amendment. In the event of such an election in Section 2.2, leave cashouts
      shall be included only if those amounts would have been included in the
      definition of 415 Compensation if they were paid prior to the
      participant's severance from employment, and the amounts are payment for
      unused accrued bona fide sick, vacation, or other leave, but only if the
      participant would have been able to use the leave if employment had
      continued. In addition, deferred compensation shall be excluded from 415
      Compensation, unless otherwise elected in Section 2.2 of this Amendment.
      In the event of such an election in Section 2.2, deferred compensation
      shall be included only if the compensation would have been included in the
      definition of 415 Compensation if it had been paid prior to the
      participant's severance from employment, and the compensation is received
      pursuant to a nonqualified unfunded deferred compensation plan, but only
      if the payment would have been paid at the same time if the participant
      had continued in employment with the Employer and only to the extent that
      the payment is includible in the participant's gross
    income.

                

        

         

        
          	
                	
                  (c) 

                	
                    Salary
      continuation payments for military service participants. 415 Compensation
      does not include, unless otherwise elected in Section 2.2 of this
      Amendment, payments to an individual who does not currently perform
      services for the Employer by reason of qualified military service (as that
      term is used in Code § 414(u)(1)) to the extent those 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
      qualified military service.

                

        

         

        
          	
                	
                  (d) 

                	
                    Salary
      continuation payments for disabled Participants. Unless otherwise elected
      in Section 2.2 of this Amendment, 415 Compensation does not include
      compensation paid to a participant who is permanently and totally disabled
      (as defined in Code § 22(e)(3)). If elected, this provision shall apply to
      either just non-highly compensated participants or to all participants for
      the period specified in Section 2.2 of this
  Amendment

                

        

         

        
          	
                  3.3

                	
                  Administrative
      delay ("the first few weeks") rule. 415 Compensation for a limitation year
      shall not include, unless otherwiseelected
      in Section 2.2 of this Amendment, amounts earned but not paid during the
      limitation year solely because of the timing of pay periods and pay dates.
      However, if elected in Section 2.2 of this Amendment, 415 Compensation for
      a limitation year shall include amounts earned but not paid during the
      limitation year solely because of the timing of pay periods and pay dates,
      provided the amounts are paid during the first few weeks of the next
      limitation year, the amounts are included on a uniform and consistent
      basis with respect to all similarly situated participants, and no
      compensation is included in more than one limitation
  year.

                

        

         

        
          	
                  3.4

                	
                  Inclusion
      of certain nonqualified deferred compensation amounts. If the Plan's
      definition of Compensation for purposes ofCode
      § 415 is the definition in Regulation Section 1.415(c)-2(b) (Regulation
      Section 1.415-2(d)(2) under the Regulations in effect for limitation years
      beginning prior to July 1, 2007) and the simplified compensation
      definition of Regulation 1.415(c)-2(dX2) (Regulation Section
      1.415-2(d)(10) under the Regulations in effect for limitation years prior
      to July 1, 2007) is not used, then 415 Compensation shall include amounts
      that are includible in the gross income of a Participant under the rules
      of Code § 409A or Code § 457(f)(1)(A) or because the amounts are
      constructively received by the Participant. [Note if the Plan's definition
      of Compensation is W-2 wages or wages for withholding purposes, then these
      amounts are already include in
Compensation.]

                

        

         

        
          	
                  3.5 

                	
                  Definition
      of annual additions. The Plan's definition of "annual additions" is
      modified as follows:

                

        

         

        
          	
                	
                  (a) 

                	
                   Restorative
      payments. Annual additions for purposes of Code § 415 shall not include
      restorative payments. A restorative payment is a payment made to restore
      losses to a Plan resulting from actions by a fiduciary for which there is
      reasonable risk of liability for breach of a fiduciary duty under ERISA or
      under other applicable federal or state law, where participants who are
      similarly situated are treated similarly with respect to the payments.
      Generally, payments are restorative payments only if the payments are made
      in order to restore some or all of the plan's losses due to an action (or
      a failure to act) that creates a reasonable risk of liability for such a
      breach of fiduciary duty (other than a breach of fiduciary duty arising
      from failure to remit contributions to the Plan). This includes payments
      to a plan made pursuant to a Department of Labor order, the Department of
      Labor's Voluntary Fiduciary Correction Program, or a court-approved
      settlement, to restore losses to a qualified defined contribution plan on
      account of the breach of fiduciary duty (other than a breach of fiduciary
      duty arising from failure to remit contributions to the Plan). Payments
      made to the Plan to make up for losses due merely to market fluctuations
      and other payments that are not made on account of a reasonable risk of
      liability for breach of a fiduciary duty under ERISA are not restorative
      payments and generally constitute contributions that are considered annual
      additions.

                

        

         

        
          	
                	
                  (b) 

                	
                   Other
      Amounts. Annual additions for purposes of Code § 415 shall not include:
      (1) The direct transfer of a benefit or employee contributions from a
      qualified plan to this Plan; (2) Rollover contributions (as described in
      Code §§ 401(a)(31), 402(c)(1), 403(aX4), 403(bX8), 408(d)(3), and
      457(e)(16)); (3) Repayments of loans made to a participant from the Plan;
      and (4) Repayments of amounts described in Code § 411(a)(7)(B) (in
      accordance with Code § 411(a)(7)(C)) and Code § 411(a)(3)(D) or repayment
      of contributions to a governmental plan (as defined in Code § 414(d)) as
      described in Code § 415(k)(3), as well as Employer restorations of
      benefits that are required pursuant to such
  repayments.

                

        

         

        
          	
                	
                  (c) 

                	
                    Date
      of tax-exempt Employer contributions. Notwithstanding anything in the Plan
      to the contrary, in the case of an Employer that is exempt from Federal
      income tax (including a governmental employer), Employer contributions are
      treated as credited to a participant's account for a particular limitation
      year only if the contributions are actually made to the plan no later than
      the 15th day of the tenth calendar month following the end of the calendar
      year or fiscal year (as applicable, depending on the basis on which the
      employer keeps its books) with or within which the particular limitation
      year ends.

                

        

         

        
          	
                  3.6 

                	
                  Change
      of limitation year. The limitation year may only be changed by a Plan
      amendment. Furthermore, if the Plan is terminatedeffective
      as of a date other than the last day of the Plan's limitation year, then
      the Plan is treated as if the Plan had been amended to change its
      limitation year.

                

        

         

        
          
             

          

          
            3

            
              

            

          

          
             

          

        

        
          	
                  3.7

                	
                  Excess
      Annual Additions. Notwithstanding any provision of the Plan to the
      contrary, if the annual additions (within the meaningof
      Code § 415) are exceeded for any participant, then the Plan may only
      correct such excess in accordance with the Employee Plans Compliance
      Resolution System (EPCRS) as set forth in Revenue Procedure 2006-27 or any
      superseding guidance, including, but not limited to, the preamble of the
      final §415 regulations.

                

        

         

        
          	
                  3.8

                	
                  Aggregation
      and Disaggregation of Plans.

                

        

         

        
          	
                	
                  (a)

                	
                  For
      purposes of applying the limitations of Code § 415, all defined
      contribution plans (without regard to whether a plan has been terminated)
      ever maintained by the Employer (or a "predecessor employer") under which
      the participant receives annual additions are treated as one defined
      contribution plan. The "Employer" means the Employer that adopts this Plan
      and all members of a controlled group or an affiliated service group that
      includes the Employer (within the meaning of Code §§ 414(b), (c), (m) or
      (o)), except that for purposes of this Section, the determination shall be
      made by applying Code § 415(h), and shall take into account tax-exempt
      organizations under Regulation Section 1.414(c)-5, as modified by
      Regulation Section 1.415(a)-1(f)(1). For purposes of this
      Section:

                

        

         

        
          	
                	
                  (1) 

                	
                   A
      former Employer is a "predecessor employer" with respect to a participant
      in a plan maintained by an Employer ifthe
      Employer maintains a plan under which the participant had accrued a
      benefit while performing services for the former Employer, but only if
      that benefit is provided under the plan maintained by the Employer. For
      this purpose, the formerly affiliated plan rules in Regulation Section
      1.415(0)-1(b)(2) apply as if the Employer and predecessor Employer
      constituted a single employer under the rules described in Regulation
      Section 1.415(a)-1(f)(1) and (2) immediately prior to the cessation of
      affiliation (and as if they constituted two, unrelated employers under the
      rules described in Regulation Section 1.415(a)-1(f)(1) and (2) immediately
      after the cessation of affiliation) and cessation of affiliation was the
      event that gives rise to the predecessor employer relationship, such as a
      transfer of benefits or plan
sponsorship.

                

        

         

        
          	
                	
                  (2) 

                	
                   With
      respect to an Employer of a participant, a former entity that antedates
      the Employer is a "predecessor employer"with
      respect to the participant if, under the facts and circumstances, the
      employer constitutes a continuation of all or a portion of the trade or
      business of the former entity.

                

        

         

        
          	
                  
                  

                	
                  (b)

                	
                  Break-up
      of an affiliate employer or an affiliated service group. For purposes of
      aggregating plans for Code § 415, a "formerly affiliated plan" of an
      employer is taken into account for purposes of applying the Code § 415
      limitations to the employer, but the formerly affiliated plan is treated
      as if it had terminated immediately prior to the "cessation of
      affiliation." For purposes of this paragraph, a "formerly affiliated plan"
      of an employer is a plan that, immediately prior to the cessation of
      affiliation, was actually maintained by one or more of the entities that
      constitute the employer (as determined under the employer affiliation
      rules described in Regulation Section 1.415(a)-1(f)(1) and (2)), and
      immediately after the cessation of affiliation, is not actually maintained
      by any of the entities that constitute the employer (as determined under
      the employer affiliation rules described in Regulation Section
      1.415(a)-1(f)(1) and (2)). For purposes of this paragraph, a "cessation of
      affiliation" means the event that causes an entity to no longer be
      aggregated with one or more other entities as a single employer under the
      employer affiliation rules described in Regulation Section
      1.415(a)-1(f)(1) and (2) (such as the sale of a subsidiary outside a
      controlled group), or that causes a plan to not actually be maintained by
      any of the entities that constitute the employer under the employer
      affiliation rules of Regulation Section 1.415(a)- l(f)(1) and (2) (such as
      a transfer of plan sponsorship outside of a controlled
    group).

                

        

         

        
          	
                	
                  (c)

                	
                  Midyear
      Aggregation. Two or more defined contribution plans that are not required
      to be aggregated pursuant to Code § 415(f) and the Regulations thereunder
      as of the first day of a limitation year do not fail to satisfy the
      requirements of Code § 415 with respect to a participant for the
      limitation year merely because they are aggregated later in that
      limitation year, provided that no annual additions are credited to the
      participant's account after the date on which the plans are required to be
      aggregated.

                

        

         

        ARTICLE
IV

        PLAN
COMPENSATION

         

        
          	
                  4.1

                	
                  Compensation
      limit. Notwithstanding Amendment Section 4.2 or any election in Amendment
      Section 2.2., if the Plan is a 401(k)plan,
      then participants may not make elective deferrals with respect to amounts
      that are not 415 Compensation. However, for this purpose, 415 Compensation
      is not limited to the annual compensation limit of Code §
      401(a)(17).

                

        

         

        
          	
                  4.2

                	
                  Compensation
      paid after severance from employment. Compensation for purposes of
      allocations (hereinafter referred to as PlanCompensation)
      shall be adjusted, unless otherwise elected in Amendment Section 2.2, in
      the same manner as 415 Compensation pursuant to Article HI of this
      Amendment, except in applying Article III, the term "limitation year"
      shall be replaced with the term "plan year" and the term "415
      Compensation" shall be replaced with the term "Plan
      Compensation."

                

        

         

        
          	
                  4.3

                	
                  Option
      to apply Plan Compensation provisions early. The provisions of this
      Article shall apply for Plan Years beginning on andafter
      July 1, 2007, unless an earlier effective date is specified in Section
      2.2. of this Amendment.

                

        

         

        ARTICLE
V

        COST-OF-LIVING
ADJUSTMENTS

         

        
          	
                  5.1

                	
                  Cost-of-living
      adjustments. The annual 415 Compensation of each Participant shall be
      adjusted for cost-of-living increases inaccordance
      with Code § 415(d) and the Treasury Regulations under Code § 415,
      including without limitation Treasury Regulation §
    1.415(d)-1.

                

        

         

        
          
             

          

          
            4

            
              

            

          

          
             

          

        

        This
Amendment for the Final 415 Regulations has been executed this 21st day of
December, 2007.

         

        Name of
Plan:  Community Capital Corporation Employee Stock Ownership Plan
(with Code Section 401(K) Provisions)

         

        Name of
Employer::  CapitalBank

         

        By:  /s/
Wayne Q. Justesen

         

        Printed
Name: Wayne Q. Justesen

         

        Title:  Chair,
Compensation Committee

         

         

        
          
             

          

          
            5

            
              

            

          

          
             

          

        

         

        AMENDMENT
NUMBER SIX TO

        COMMUNITY
CAPITAL CORPORATION EMPLOYEE STOCK OWNERSHIP PLAN

        (WITH
CODE SECTION 401(k) PROVISIONS)

         

        WHEREAS,
CapitalBank, a corporation organized and existing under the laws of South
Carolina (the "Company"), previously established and currently maintains the
Community Capital Corporation Employee Stock Ownership Plan (with Code Section
401(k) Provisions) (the "Plan") for the benefit of eligible employees of the
Company and any Participating Employer with respect to whom the Company has
consented to the adoption of the Plan; and

         

        WHEREAS,
Section 8.1 of the Plan authorizes the Company to amend the Plan as it
deems appropriate from time to time; and

         

        WHEREAS,
the Company now desires to amend the provisions of the Plan governing
loans to participants to expand the circumstances in which Plan loans are
available.

         

        NOW,
THEREFORE, the Plan is hereby amended as
follows:

         

        1.
Notwithstanding any provision of the Plan to the contrary, effective as of
January 1, 2009,
Section 8.4 of the Plan is amended by deleting subsection (a) in its entirety
and inserting in its place the following:

         

        (a) The
Trustee may, in the Trustee's discretion, make loans to Participants
and Beneficiaries under the following circumstances: (1) loans shall be made
available to all Participants and Beneficiaries on a reasonably equivalent
basis; (2) loans shall not be made available to Highly Compensated Employees in
an amount greater than the amount made available to other Participants and
Beneficiaries; (3) loans shall bear a reasonable rate of interest; (4) loans
shall be adequately secured; (5) loans shall provide for periodic repayment over
a reasonable period of time; and (6) loans shall only be made available for the
circumstances described in the Participant loan program.

         

        2. Except
as hereinabove amended the Plan shall remain in full force and
effect.

         

        IN
WITNESS WHEREOF, the Company has caused this Amendment Number Six to be executed
on this 28th day of
January, 2009.

         

        
          	 
      

        

        
          
            
              	
                      CAPITALBANK

                    
	 
	 

            

          

        

        
          	
                  By:     
      /s/ Harold
      Clinkscales, Jr

                

        

        
          	
                  Harold
      Clinkscales, Jr

                

        

        
          	
                  Compensation
      Committee Chairman

                

        

         

         

        
          
             

          

          
            
            

            
              

            

          

          
             

          

        

         

        AMENDMENT
NUMBER SEVEN TO

        COMMUNITY
CAPITAL CORPORATION EMPLOYEE STOCK OWNERSHIP PLAN

        (WITH
CODE SECTION 401(k) PROVISIONS)

         

        WHEREAS,
CapitalBank, a corporation organized and existing under the laws of South
Carolina (the "Company"), previously established and currently maintains the
Community Capital Corporation Employee Stock Ownership Plan (with Code Section
401(k) Provisions) (the "Plan") for the benefit of eligible employees of the
Company and any Participating Employer with respect to whom the Company has
consented to the adoption of the Plan; and

         

        WHEREAS,
Section 8.1 of the Plan authorizes the Company to amend the Plan as it
deems appropriate from time to time; and

         

        WHEREAS,
the Company now desires to amend the provisions of the Plan addressing
the right of first refusal.

         

        NOW,
THEREFORE, the Plan is hereby amended as
follows:

         

        1.   Notwithstanding
any provision of the Plan to the contrary, effective as of January 1, 2009,
Section 7.9 of the Plan is amended by deleting that Section in its entirety and
inserting in its place the word "RESERVED."

         

        2.   Notwithstanding
any provision of the Plan to the contrary, effective as of January 1, 2009,
Section 7.10 of the Plan is amended by deleting that Section in its entirety and
inserting in its place the word "RESERVED."

         

        3.   Except
as hereinabove amended the Plan shall remain in full force and
effect.

         

        IN
WITNESS WHEREOF, the Company has caused this Amendment Number Seven to be
executed on this 15th day of
April, 2009.

         

        CAPITALBANK

         

        
          By: /s/
R. Wesley Brewer

          CFOexhibit1001nicorincagreement.htm

    Nicor
Inc.

    Form 8-K 

    Exhibit 10.01

     

    MEMORANDUM
OF AGREEMENT REACHED (Corrected 3/17/09)

    IN COLLECTIVE BARGAINING –
MARCH
11,
2009

    

    As a
result of collective bargaining, the following agreement has been
reached.

    I.          Term of
Agreement

    The term
of the new agreement will be from March 1, 2009 through February 28,
2014.

     

    II.        General Wage
Increase

    Members
of Local 19 will receive a general wage increase of 3.00% effective March
1, 2009, 3.00%
effective March 1, 2010, 3.50% effective March
1, 2011, 3.00%
effective March 1, 2012, and 3.25% effective March
1, 2013.

     

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                Present Maximum 

                                Rate

                              	 
      	
                                Effective 3/1/2009

                              	
                                Effective 3/1/2010

                              	
                                Effective 3/1/2011

                              	
                                Effective 3/1/2012

                              	
                                Effective 3/1/2013

                              
	
                                $32.22

                              	 
      	
                                $0.97

                              	
                                $0.99

                              	
                                $1.19

                              	
                                $1.06

                              	
                                $1.18

                              
	
                                $32.07

                              	 
      	
                                $0.95

                              	
                                $0.98

                              	
                                $1.18

                              	
                                $1.05

                              	
                                $1.17

                              
	
                                $31.69

                              	 
      	
                                $0.95

                              	
                                $0.98

                              	
                                $1.18

                              	
                                $1.04

                              	
                                $1.16

                              
	
                                $31.35

                              	 
      	
                                $0.94

                              	
                                $0.97

                              	
                                $1.16

                              	
                                $1.03

                              	
                                $1.15

                              
	
                                $30.55

                              	 
      	
                                $0.91

                              	
                                $0.94

                              	
                                $1.13

                              	
                                $1.00

                              	
                                $1.12

                              
	
                                $30.54

                              	 
      	
                                $0.91

                              	
                                $0.94

                              	
                                $1.13

                              	
                                $1.00

                              	
                                $1.12

                              
	
                                $30.48

                              	 
      	
                                $0.91

                              	
                                $0.94

                              	
                                $1.13

                              	
                                $1.00

                              	
                                $1.12

                              
	
                                $30.01

                              	 
      	
                                $0.90

                              	
                                $0.93

                              	
                                $1.11

                              	
                                $0.99

                              	
                                $1.10

                              
	
                                $28.93

                              	 
      	
                                $0.87

                              	
                                $0.89

                              	
                                $1.07

                              	
                                $0.95

                              	
                                $1.06

                              
	
                                $28.46

                              	 
      	
                                $0.84

                              	
                                $0.86

                              	
                                $1.04

                              	
                                $0.92

                              	
                                $1.03

                              
	
                                $28.30

                              	 
      	
                                $0.85

                              	
                                $0.87

                              	
                                $1.05

                              	
                                $0.93

                              	
                                $1.04

                              
	
                                $27.57

                              	 
      	
                                $0.83

                              	
                                $0.85

                              	
                                $1.02

                              	
                                $0.91

                              	
                                $1.01

                              
	
                                $27.35

                              	 
      	
                                $0.82

                              	
                                $0.84

                              	
                                $1.01

                              	
                                $0.90

                              	
                                $1.00

                              
	
                                $27.20

                              	 
      	
                                $0.82

                              	
                                $0.84

                              	
                                $1.01

                              	
                                $0.90

                              	
                                $1.00

                              
	
                                $26.92

                              	 
      	
                                $0.81

                              	
                                $0.83

                              	
                                $1.00

                              	
                                $0.89

                              	
                                $0.99

                              
	
                                $26.33

                              	 
      	
                                $0.79

                              	
                                $0.81

                              	
                                $0.98

                              	
                                $0.87

                              	
                                $0.97

                              
	
                                $25.69

                              	 
      	
                                $0.77

                              	
                                $0.79

                              	
                                $0.95

                              	
                                $0.85

                              	
                                $0.94

                              
	
                                $25.66

                              	 
      	
                                $0.71

                              	
                                $0.73

                              	
                                $0.88

                              	
                                $0.78

                              	
                                $0.87

                              
	
                                $24.35

                              	 
      	
                                $0.73

                              	
                                $0.75

                              	
                                $0.90

                              	
                                $0.80

                              	
                                $0.90

                              
	
                                $24.30

                              	 
      	
                                $0.73

                              	
                                $0.75

                              	
                                $0.90

                              	
                                $0.80

                              	
                                $0.89

                              
	
                                $23.12

                              	 
      	
                                $0.69

                              	
                                $0.71

                              	
                                $0.86

                              	
                                $0.76

                              	
                                $0.85

                              
	
                                $23.10

                              	 
      	
                                $0.69

                              	
                                $0.71

                              	
                                $0.86

                              	
                                $0.76

                              	
                                $0.85

                              
	
                                $22.90

                              	 
      	
                                $0.68

                              	
                                $0.70

                              	
                                $0.84

                              	
                                $0.75

                              	
                                $0.83

                              
	
                                $22.59

                              	 
      	
                                $0.68

                              	
                                $0.70

                              	
                                $0.84

                              	
                                $0.74

                              	
                                $0.83

                              
	
                                $21.56

                              	 
      	
                                $0.65

                              	
                                $0.67

                              	
                                $0.80

                              	
                                $0.71

                              	
                                $0.79

                              
	
                                $20.98

                              	 
      	
                                $0.63

                              	
                                $0.65

                              	
                                $0.78

                              	
                                $0.69

                              	
                                $0.77

                              
	
                                $20.26

                              	 
      	
                                $0.61

                              	
                                $0.63

                              	
                                $0.75

                              	
                                $0.67

                              	
                                $0.74

                              
	
                                $20.13

                              	 
      	
                                $0.60

                              	
                                $0.62

                              	
                                $0.74

                              	
                                $0.66

                              	
                                $0.73

                              
	
                                $19.46

                              	 
      	
                                $0.57

                              	
                                $0.59

                              	
                                $0.71

                              	
                                $0.63

                              	
                                $0.70

                              
	
                                $19.44

                              	 
      	
                                $0.57

                              	
                                $0.59

                              	
                                $0.71

                              	
                                $0.63

                              	
                                $0.70

                              
	
                                $18.33

                              	 
      	
                                $0.55

                              	
                                $0.57

                              	
                                $0.68

                              	
                                $0.60

                              	
                                $0.67

                              
	
                                $17.92

                              	 
      	
                                $0.54

                              	
                                $0.55

                              	
                                $0.67

                              	
                                $0.59

                              	
                                $0.66

                              
	
                                $16.87

                              	 
      	
                                $0.51

                              	
                                $0.52

                              	
                                $0.63

                              	
                                $0.56

                              	
                                $0.62

                              
	
                                $16.72

                              	 
      	
                                $0.50

                              	
                                $0.52

                              	
                                $0.62

                              	
                                $0.55

                              	
                                $0.61

                              
	
                                $16.52

                              	 
      	
                                $0.50

                              	
                                $0.51

                              	
                                $0.61

                              	
                                $0.54

                              	
                                $0.61

                              
	
                                $15.99

                              	 
      	
                                $0.48

                              	
                                $0.49

                              	
                                $0.59

                              	
                                $0.53

                              	
                                $0.59

                              
	
                                $15.82

                              	 
      	
                                $0.46

                              	
                                $0.47

                              	
                                $0.56

                              	
                                $0.50

                              	
                                $0.56

                              
	
                                $15.37

                              	 
      	
                                $0.46

                              	
                                $0.47

                              	
                                $0.57

                              	
                                $0.51

                              	
                                $0.56

                              
	
                                $15.35

                              	 
      	
                                $0.45

                              	
                                $0.47

                              	
                                $0.56

                              	
                                $0.50

                              	
                                $0.55

                              
	
                                $14.33

                              	 
      	
                                $0.43

                              	
                                $0.44

                              	
                                $0.53

                              	
                                $0.47

                              	
                                $0.53

                              
	
                                $13.16

                              	 
      	
                                $0.39

                              	
                                $0.40

                              	
                                $0.49

                              	
                                $0.43

                              	
                                $0.48

                              
	
                                $12.47

                              	 
      	
                                $0.37

                              	
                                $0.38

                              	
                                $0.46

                              	
                                $0.41

                              	
                                $0.46

                              

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        1 

      

      
         

        
          

        

      

      
         

      

    

    All
general wage increases will be placed into effect in the same manner as, and the
conditions applicable to, the last general wage increase.

    

    General Contract
Items

    

    Article
IV, Section 4

    Night
shift premium has been increased from $1.35 to $1.50 per
hour.   Sections 4(c) and 4(d) have been eliminated.

    

    Article
IV, Section 13

    An
exception has been added to exclude employee hours reported on disability and/or
workers compensation from the forty (40) paid hours of the basic work
week.  This Article will not apply to employees “called out” to
perform work per prior agreement in 2000.

    

    Article
IV, Section 18

    Paragraph
3 of Article IV, Section 18 has been revised as follows:

     

    The first
sentence “An employee who operates a Company-owned vehicle which is kept at
his/her home shall, in case of a call-back, be paid a call-back allowance of two
hours at straight time.”  has been eliminated.

    

    Article
IV, Section 23

    Has been
revised to increase the meal money allowance from $7.50 to $8.00.

    

    Article
VI

    Has been
revised to eliminate language regarding “banked” vacation hours.

     

    Has been
revised to use vacation in half hour increments for authorized Family Medical
Leave absences only.

     

    Section 8
has been revised as follows:  An employee’s eligibility for earned
vacation shall not be affected by a prolonged absence while they are on Short
Term Disability.   However, employees will not accrue vacation
while on Long Term Disability.

     

    Section
12 has been revised that employees on Short Term Disability or Workers
Compensation at the end of the calendar year will not be allowed to defer
vacation into the next year.

    

    Article
VII, Section 3

    Has been
revised that “Assignments of four hours in an eight hour day and five hours in a
ten hour day shall be considered a full day under this
section.  No payment will be made for such temporary assignments if
they amount to less than four hours in an eight hour day and five hours in a ten
hour day.”

     

    
      
        2 

      

      
         

        
          

        

      

      
         

      

    

    Article
VII, Section 5(b)

    Has been
revised as follows:  “The hourly rate of pay of an employee who is
less than 55 years of age will be reduced by $1.50 per hour immediately after
the date of the transfer to the lower job classification.  On the
first anniversary date following the transfer and on every succeeding
anniversary date the employee’s hourly rate will be reduced by $1.50 per
hour.  This reduction will continue until the hourly rate of the
employee is equal to the maximum hourly rate of the job the employee is
performing.   During this period, the employee will not be
eligible to receive general wage increases.  Employees administered
under Article VII, Section 5 prior to ratification will not be affected by this
change.

     

    Article
VIII

    The
Company and the Union have agreed to discuss the language of Article VIII for
revisions to the grievance procedure that would best meet the needs of the Union
and the Company.

     

    Article
IX

    The
sentence (4d) has been eliminated as the Employee Benefit Association Plan will
be replaced with a third party administrator to manage the Short Term
Disability, Long Term Disability and Workers Compensation Cases. The details of
the short term and long term disability plan provisions will be updated and
contained in the summary plan description.

     

    Exhibit
C – Memorandums of Agreement

     

    The
Company and the Union have agreed to add the following language to the
memorandum, “Statements Covering Items of Understanding, Re:  Two
persons on Steel and Promotional Sequence (Dated February 15, 1994 and revised
March 1, 2000) as follows:  “During daylight savings time, call out
for replacement of services less than 2” will be a proper work assignment for
two persons during day or night.  If daylight savings time goes away, it
will revert to the same period of time described in months which currently is
March through October.

     

    The
Memorandum of Agreement dealing with the installation of mains and services by
contractors will be made part of Exhibit C.  (See Exhibit
I)

     

    The
Company and the Union have agreed to review certain Memorandums of Agreement for
inclusion in the Collective Bargaining Agreement.

     

    General
Items

    

    
      	
              1.  

            	
              Assistant
      Vice-President secretarial stenographer positions will no longer be part
      of the bargaining unit.  Employees currently in these positions
      will be given a one time option to remain as a bargaining unit
      employee.

            

    

    
 

    
      
         
3

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              2.  

            	
              Non-analytical
      Hi/Lows and Step Down reads to the last actual bill will be a proper
      assignment for a Level 3 clerical employee.  (Hi/Lows involving
      cancel and rebills greater than 90 days, write-offs and factor refinements
      will still be considered level 4 work.)  The
      Company will fill six General Office Clerk positions (Level 3) in
      BQA.

            

    

     

    
      	
              3.  

            	
              The
      Company will maintain ten Service Clerks (Level 4) and five Level 5
      positions in BQA for the term of this
contract.

            

    

    

    
      	
              4.  

            	
              The
      Company will fill one Accounting Record Clerk Position (Level 5) and two
      Service Representative (Level 6) positions in
  BQA.

            

    

    

    
      	
              5.  

            	
              The
      Company will maintain ten Sr. Customer Care Specialists for the term of
      this Contract.

            

    

    

    
      	
              6.  

            	
              The
      Company will fill five Sr. Customer Care Specialists positions in Sycamore
      and one Sr. Customer Care Specialist in
  Bloomington.

            

    

    

    
      	
              7.  

            	
              The
      Company will have right of selection for the Sr. Customer Care Specialist
      positions, from applicants within the Customer Care Specialist
      classification, within six months of the senior applicant.  The
      selection of an employee, made according to the criteria set forth in this
      agreement, will not be subject to the grievance procedure.  An
      employee passed up under the bidding process outlined in this agreement
      will, upon inquiry, be informed by the company of the reason why she/he
      was not promoted.

            

    

    

    
      	
              8.  

            	
              Correspondence
      work related to Deferred Payment Arrangements, deposits,
      address/name/spelling corrections, customer readings, Gas Line Comfort
      Guard/Heating, Ventilation and Air Conditioning, missed appointments,
      multiples and telephone collection compliance will be a proper assignment
      for a Customer Care Specialist (Level
2A).

            

    

    

    
      	
              9.  

            	
              The
      Company agrees to fill one Accounting Records Clerk (Level 5) and one Lead
      Accounting Clerk (Level 6) in the Correspondence
    Department.

            

    

    

    
      	
              10.  

            	
              The
      2000 Selection Agreement pertaining to Service Clerks in the BQA and
      Correspondence Departments has been eliminated and replaced with a
      training/certification process for employees who do not come from the
      Call Center or do not have Customer Care and Billing
      experience.

            

    

    

    
      	
              11.  

            	
              The
      Company agrees to fill a General Analysis Clerk (Level 7) in G.O. and the
      Memorandum of Understanding, General Accounting Level 7 Positions –
      Restructuring of Duties effective February 22, 2005 has been
      eliminated.

            

    

    

    
      	
              12.  

            	
              The
      excess clerical employee ground rules have been revised to include
      Sycamore.  (See Exhibit
II)

            

    

    
 

    
      
        4 

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
              13.  

            	
              The
      Collector job classification has been eliminated.  Incumbent
      employees will be grandfathered and offered a lateral option within Credit
      & Collections or Service Clerk positions within BQA.  The
      employees in Bloomington and Joliet will not be forced from their current
      work locations. If unable to pass Level 4 BQA certification, the employees
      will remain in Credit & Collections.  All other Collectors will
      report to Aurora, Yorkville or G.O.

            

    

    

    
      	
              14.  

            	
              Pre-requisites
      for the Construction Clerk job classification have been
      eliminated.

            

    

    

    
      	
              15.  

            	
              The
      Company will fill a Construction Clerk position (Level 5) in Bellwood and
      a Service Representative position (Level 6) in Field Operations
      Construction.

            

    

    

    
      	
              16.  

            	
              The
      Company will fill a Service Clerk position (Level 4) in either
      Credit/Collections or BQA. (Collectors will be eligible to lateral to this
      position.)

            

    

    

    
      	
              17.  

            	
              Clerical
      employees in levels 1, 2, 2A and 3 will have the opportunity to accept
      open positions in Meter Reading.  (See Exhibit
    III)

            

    

    

    
      	
              18.  

            	
              Employees
      accepting promotions will receive an increase at the time of the promotion
      based on 70% of the difference of the maximum rate of the current job
      classification and the minimum rate of the promotional job
      classification.  After successful completion of their qualifying
      period, the employee will receive 100% of the promotional
      increase.

            

    

    

    
      	
              19.  

            	
              A
      Sr. Distribution Plastic Operator in the Field Operations Construction
      department has been created which will require testing and certification
      as part of the selection process. The hourly rate of pay will be $31.12 to
      $31.35.  (See
      Exhibit IV)

            

    

    

    
      	
              20.  

            	
              The
      Utility Inspector Selection Memorandum of Agreement has been extended and
      the Company has agreed to maintain 18 Sr. Specialists in the System
      Operations Department for the term of the
  contract.

            

    

    

    
      	
              21.  

            	
              The
      Arc Welder job classification has been added to the promotional sequence
      in the Storage Department.

            

    

    

    
      	
              22.  

            	
              The
      Company has agreed to maintain 200 employees in the Operations Mechanic
      and Sr. Operations Mechanic job classification for the term of the
      agreement.

            

    

    

    
      	
              23.  

            	
              The
      Company and the Union have agreed to add Leak Investigation and Leak
      Grading to the certification process for the Distribution Mechanic,
      Controller and Sr. Controller job classifications.  The training
      time for certification will be adjusted to account for the additional
      courses, if necessary.  Employees currently in the Distribution
      Mechanic, Controller and Sr. Controller job classifications will be
      trained and qualified as business conditions
  permit.

            

    

    

    
      	
              24.  

            	
              The
      Company and the Union have agreed to implement a modular training and
      certification process for the Operations Mechanic job
      classification.

            

    

    

    
      	
                     25.
        

            	
              There
      is an agreement to add a test for meter reader/helper (hired after 2007)
      promoting to mechanic level job classification or
      equivalent.  Mutual agreement will be obtained between the
      company and union before implementation of the testing
      program.

            

    

     

     

    
      
        5

      

      
        
        

        
          

        

      

      
        
        

      

    

    
 

    
      	
                   
      26.   

            	
              The
      Company will fill the following positions upon ratification of the
      Contract.

            

    

    (1)
Distribution Crewleader – (1) Joliet

    
      	
               
      

            	
              (4)
      Distribution Technicians – (2) Glen Ellyn, (1) Joliet, (1)
      Bloomington

            

    

    
      	
               
      

            	
              (7)
      Distribution Mechanics – (4) Bellwood, (1) Park Ridge, (2)
      Schaumburg

            

    

    
      	
               
      

            	
              (1)
      Operations Mechanic – (1) Rockford

            

    

    
      	
               
      

            	
              (2)
      Leak Survey Specialists (1) Park Ridge, (1)
      Joliet

            

    

    
      	
               
      

            	
              (1)
      Sr. Distribution Plastic Operator

            

    

    

    Benefit
Items

    

    Short
Term Disability Plan

    

    
      	
              1.  

            	
              The
      Company and the Union have agreed to eliminate the EBA Board and engage a
      third party administrator to case manage all STD, LTD, and Worker’s
      Compensation cases.

            

    

    

    
      	
              2.  

            	
              Employee
      premiums for Short Term Disability benefits will be deducted on a pre-tax
      basis.

            

    

    

    
      	
              3.  

            	
              The
      length of the Short Term Disability benefit has been reduced from 39 weeks
      to 26 weeks.

            

    

    

    
      	
              4.  

            	
              Short
      Term Disability benefits will be paid according to years of
      service:

            

    

    

    
      
        
          
            
              
                
                  
                    
                      
                        	
                                 Years
      of Service

                              	
                                Percentage
      of Base Pay

                              
	
                                 20+
      years

                              	
                                75%

                              
	
                                 11
      – 19 years

                              	
                                65%

                              
	
                                 6
      months – 10 years

                              	
                                60%

                              

                      

                    

                  

                

              

            

          

        

      

    

    

    This
schedule will be effective the pay period following the employee’s service
anniversary date.

    

    
      
        	
                5.
       

              	
                Employees
      will be eligible to enroll in the Short Term Disability program without
      evidence of insurability after completing six months of
      service.

              

      

    

    

    
      	
               
      

            	
              The
      Company and the Union have agreed to modify the Short Term Disability
      Election Form to ensure an eligible employee understands the repercussions
      of their decision not to participate in the plan.  The
      repercussion can include termination of employment.  The Union
      President will be notified of such
elections.

            

    

    

    
      
        	
                6.
       

              	
                Employees
      who do not initially enroll in the Short Term Disability benefit at
      completion of six months of service may enroll in the program during the
      annual open enrollment period with evidence of
    insurability.

              

      

    

    

    
      	
               
      

            	
              7.
        

            	
              Disability
      absences either, full or partial day, will be counted as an incident and a
      full day absence.

            

    

    

    
      	
               
      

            	
              8.
        

            	
              Time
      incurred on the Short or Long Term disability program will not be counted
      towards reinstating the 4 incident and/or 8 day absence program when they
      return to work.

            

    

     

     

    
      
        6

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
               
      

            	
              9.
        

            	
              Following
      ratification of the contract, a four pay period moratorium suspending
      short term disability premiums will be
  implemented.

            

    

    

    Flexible
Spending Account

    The
Company will implement a debit card effective with the 2010 plan year
rollout.

    

    Retirement
Growth Account

    Effective
with the 2009 award the annual Company contribution to the Retirement Growth
Account for eligible employees hired on and after January 1, 1998 will be
increased to 1.4%.

    The 2009
award will be contributed to employee accounts in the first quarter of
2010.

    

    Thrift
Plan

    The
Company will add the following new options to the 401(k) plan:

    
      	
              ·  

            	
              Roth
      401(k) contribution

            

    

    
      	
              ·  

            	
              Catch
      up contribution

            

    

    
      	
              ·  

            	
              Roll-ins
      from previous employer plans

            

    

    
      	
              ·  

            	
              Increase
      pre-tax deferral percentage to 50%.

            

    

    The date
of implementation will be coordinated with the third party provider and
communicated to eligible employees in a timely manner.

    

    Pension and Insurance
Plans

    The
Supplemental Agreement with respect to the Pension Plan, and the Supplemental
Agreement with respect to the Group Life Insurance Plan, Dependent Life
Insurance Plan, Group Accidental and Dismemberment Plan, Group Medical Expense
Insurance Plan and Dental Plan, to which the Company and the Union are parties,
will terminate in accordance with their terms after February
28, 2009.  These supplemental agreements will be amended as
follows:

    

    
      	
               
      

            	
              1.

            	
              The
      Supplemental Agreement with respect to the Pension Plan will be effective
      March 1, 2009 through February 28, 2014.  Changes to the Pension
      Band are noted in Exhibit V.

            

    

    

    
      	
               
      

            	
              2.

            	
              The
      Supplemental Agreement with respect to the Group Life Insurance Plan,
      Dependent Life Insurance Plan, Group Accidental and Dismemberment Plan,
      Group Medical Expense Insurance Plan and Dental Plan will be effective
      March
      1, 2009 through February 28, 2014 and will contain the following
      changes:

            

    

    

    a.            
Gift Life Insurance will be increased from $9,500.00 to $10,000.00.

    

    
      	
               
      

            	
              b.

            	
              Non-Contributory
      Life Insurance provision will be increased from 1.5 times base pay to
      1.6 times base pay.

            

    

    

    
      	
               
      

            	
              c.

            	
              The
      lifetime maximum benefit per active employee participant under the Group
      Medical Expense Insurance Plan will be reinstated to $1,500,000 effective
      March 1, 2009.

            

    

    

    
      
        	
                 
      

              	
                d.

              	
                The
      Group Medical Insurance Plan will be revised to allow legal dependents of
      active employees to participate in both the PPO and HMO medical plans to
      age 26 per the recent regulations passed in the State
  of

              

         

         

        
          
            7

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

        	 	 	
                Illinois.  In
      the event this legislation is revoked the company and the union will
      discuss and agree on any future
terms.

              

      

    

    

    
      
        	
                Retiree
      Medical Insurance

              

      

    

    

    Caps for
retiree medical coverage for eligible employees hired prior to February 28, 1997
and with less than 15 years of service as of January 1, 1998 and
employees hired on and after

    March 1,
1997 has been improved as follows:

    
    

     

    
      
        
          
            	 	 	 	 	
                    Maximum
      Annual Amount

                  	 
	 	 	 	 	
                    Paid by Company
      Toward

                  	 
	Employee
      Category  	 	Coverage
    Type	 	
                    Retiree Medical
      Premium

                  	 
	 	 	 	 	 	 	 	 
	Employees hired on
      or    	 	 	 	
                     Pre-65                  

                  	 	Post-65	 
	before February 28,
      1997	 	Single  	 	$  6,500	 	$ 
    3,090	 
	on the payroll as
      of	 	 	 	 	 	 	 
	January 1, 1998
      with   	 	Family     	 	$ 12,200	 	$ 
    5,740	 
	less than 15 years
      service	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Employees hired on
      and        	 	Single         	 	$  4,120	 	$ 
    1,730	 
	after March 1,
      1997     	 	Family                                                      	 	$  7,700             	 	$ 
    3,250	 
	 	 	 	 	 	 	 	 

          

        

      

    

     

                                                                                               

    
      
        8 

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
I

     

    

    Memorandum
of Agreement

    Dated
March 1, 2009

    

    This
document will supersede any prior agreements or memorandums pertaining to the
installation of mains and services by contractors.

    

    The
Company will notify the Union President regarding plans to work contractors on
overtime installing mains and services.

    

    The
Company and the Union agree to the following when contractors work overtime
installing gas mains and services that our employees normally
perform.

    

    
      	
              ·  

            	
              In
      situations where the contractor works overtime and the contractor performs
      work that normally is performed by our employees, the Company will offer
      employees from the reporting center where the work is being performed the
      opportunity to work.  The work will be offered as designated
      below until an equal number of employees have accepted the work or all
      employees have been asked to work.

            

    

    

    
      	
              ·  

            	
              Reporting
      Center is defined as the area covered for emergency or scheduled overtime
      by employees assigned to a specific company
  headquarters.

            

    

    

    
      	
              ·  

            	
              Overtime
      will be defined as scheduled days of work after the contractor has worked
      40 hours in a calendar week and will not include hours during extended
      days as a result of necessities on the job or additional days to make up
      for inclement weather.

            

    

    

    
      	
              ·  

            	
              The
      work will be offered to our employees within a week after the contractor
      works and will be offered to the Nicor employee group most aligned with
      business needs as follows:

            

    

    

    The
overtime will be offered to Field Operations Construction employees when
contractors install new P.E. mains and new P.E. services and then Field
Operations Delivery employees if additional resources are
required.  In areas with no Field Operations Construction employees,
the overtime would be offered to Field Operations Delivery
employees.

    

    The
overtime will be offered to Field Operations Delivery employees when contractors
are performing public improvement, system improvement and revision mains and
services.

     

    

    
      
        9

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
II

     

     

    Excess Clerical Employee
Ground Rules

    Dated
July 12, 1984

    Revised
July 19, 1991

    Revised
March 1, 2009

    

    It has
been agreed between the company and union that excess clerical employees will
not be forced from their previous reporting headquarters beyond the reasonable
distances as set forth below.

    

    
    

     

    
      
        
          	 G.O.   	 	 Park
      Ridge      	 	 Crystal
      Lake 	 	 Bellwood 	 
	Bellwood 	 	Glen
      Ellyn 	 	Elgin 	 	Park
      Ridge 	 
	Joliet  	 	Aurora/Yorkville 	 	Schaumburg 	 	Schaumburg 	 
	Glen
      Ellyn 	 	Crystal
      Lake 	 	Sycamore 	 	Glenwood 	 
	Aurora/Yorkville 	 	Schaumburg 	 	Rockford 	 	Crestwood 	 
	Sycamore 	 	Elgin 	 	Park
      Ridge 	 	G.O. 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Glenwood 	 	
                  Kankaee

                	 	Bloomington 	 	Paxton 	 
	Crestwood 	 	Glenwood     	 	Paxton 	 	Bloomington 	 
	Joliet  	 	Crestwood  	 	Hudson  	 	Kankakee 	 
	Kankakee  	 	Joliet  	 	Pontiac 	 	 	 
	G.O. 	 	 	 	 	 	 	 
	Bellwood 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Ottawa 	 	Joliet 	 	Glen
      Ellyn 	 	Sycamore 	 
	Joliet  	 	Kankakee   	 	G.O.  	 	Crystal
    Lake	 
	Yorkville       	 	G.O.  	 	Bellwood 	 	Dixon 	 
	Ancona        	 	Ottawa   	 	Park
      Ridge 	 	G.O. 	 
	Troy
      Grove  	 	Glenwood  	 	Schaumburg  	 	Glen
      Ellyn 	 
	 	 	Crestwood    	 	Sycamore                                 	 	Aurora/Yorkville 	 
	 	 	Glen
      Ellyn 	 	Elgin 	 	Elgin 	 
	 	 	Aurora/Yorkville 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	Dixon 	 	Rockford 	 	 	 	 	 
	Rockford    	 	Crystal
      Lake 	 	 	 	 	 
	Sycamore 	 	Elgin	 	 	 	 	 
	 	 	Dixon 	 	 	 	 	 
	 	 	 	 	 	 	 	 

        

      

    

                                                                                 

     Employees
promoted to a 3 level position or higher prior to December 31, 1985 will not be
forced into the Call Center should they become excess.

     

    
      
        10 

      

      
         

        
          

        

      

      
         

      

    

    
 

    
      	
               
      

            	
              Exhibit
      III

            

    

    
 

    
      	
               
      

            	
              AGREEMENT
      REGARDING TRANSFERS FROM CLERICAL TO METER
  READING

            

    

    

    

    
      
        	
                Employees
      from clerical levels 1, 2, 2A and 3 may accept positions in meter reading
      under the following
      conditions:

              

      

    

    
      
      

    

    

    
      	
              ·  

            	
              Employees
      must have 1 1⁄2 years in current
position.

            

    

    
      	
              ·  

            	
              If
      employee’s current rate of pay is greater than current meter reader rate
      of pay, the employee’s rate of pay will be reduced to the maximum of the
      meter reader job classification which currently is
  $15.35.

            

    

    
      	
              ·  

            	
              Employee’s
      whose rate of pay is below the maximum of the meter reader job will be
      slotted into the appropriate time and rate step (down) of the meter reader
      job classification.

            

    

    
      	
              ·  

            	
              Employees
      will have a one time opportunity to transfer to the meter reader job
      classification.

            

    

    
      	
              ·  

            	
              Employees
      will be required to pass meter pro training.  If an employee is
      unsuccessful in passing meter pro training the employee will not be
      eligible to return to the clerical bargaining unit and employment may be
      terminated.

            

    

    
      	
              ·  

            	
              Employees
      will be required to complete a 120 day qualifying period after successful
      completion of meter pro.  Employees who are unsuccessful will
      not be eligible to return to the clerical bargaining unit and employment
      may be terminated.

            

    

    
      	
              ·  

            	
              The
      discharge of an employee in their qualifying period will not be subject to
      the provisions of Article VIII.

            

    

    
      	
              ·  

            	
              Employees
      will not be eligible for time or mileage
  reimbursements.

            

    

    

    This
program will expire on July 1, 2011 unless extended by mutual agreement by the
Company and the Union.

    

    
      
        11 

      

      
         

        
          

        

      

      
         

      

    

     

                                    Exhibit
IV

     

     

    Senior
Distribution Plastic Operator

    Certification
Procedure

    Phase
I

    General
Information

    

    Phase I
of the Senior Distribution Plastic Operator position consists of six
parts:

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          	
                                                  SECTION

                                                	
                                                  TYPE

                                                	
                                                  POINT
      VALUE

                                                
	
                                                  I

                                                	
                                                   Prerequisite
      – Distribution Plastic Laborer or  

                                                   Distribution/Operations
      Mechanic or Leak

                                                   Survey
      Specialist

                                                   Valid
      Driver’s License Proper Classification DOT  

                                                   Card

                                                   

                                                	
                                                  None

                                                
	
                                                  II

                                                	
                                                   Demonstrative
      Test – Use of Tools

                                                	 
      
	
                                                  III

                                                	
                                                   Demonstrative
      Test – Electrofusion

                                                	 
      
	
                                                  IV

                                                	
                                                   Demonstrative
      Test – Locating

                                                	 
      
	
                                                  V

                                                	
                                                   Demonstrative
      Test

                                                   Service
      Installation and Equipment Operation –   

                                                   Electrofusion

                                                	 
      
	
                                                  VI

                                                	
                                                   Written
      Test

                                                   Policies,
      Practices, Specifications and Problems

                                                	 
      
	
                                                  Total
      Points

                                                	 
      

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    
      
        	
                Note:

              	
                Personnel
      promoting from the Leak Survey Specialists and Operations Mechanic
      positions will be required to complete sections I-V.

              
	 	 
	 	Personnel
      promoting from the Watch & Protect Locator, and Senior Operations
      Mechanic will have a training schedule based on their prior job
      classification. 
	 	 
	 	
                Personnel
      promoting from Distribution Plastic Laborer, Distribution Mechanic,
      Distribution Plastic Operator, Distribution Technician and Distribution
      Plastic Operators will be required to completed sections IV and
      V. 

              

      

    

    

    
      
        	
                Proposed
      training time for Phase I

              	
                up
      to 10 weeks – Leak Survey Specialist, Distribution Plastic Laborer,
      Operations Mechanic, or Distribution Mechanics

              
	 	 
	 	10 days
      – Distribution Plastic Operator and Distribution
  Technician 
	 	 
	
                Proposed
      certification time 

              	
                45
      days – Leak Survey Specialist, Distribution Plastic Laborer, Distribution
      Operations Mechanic, 

              

         

        	 	10
      days – Distribution Plastic Operator and Distribution
      Technician 
	 	 
	Weighting
      of each criteria to be determined 	 
	 	 

      

    

    

     

    
      
        12 

      

      
         

        
          

        

      

      
         

      

    

    

    Exhibit IV
(Cont.)

     

     

    Senior
Distribution Plastic Operator

    Certification
Procedure

     

    Phase
II

     

    General
Information

    

    Phase II
of the Senior Distribution Plastic Operator position consists of eight
parts:

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	
                                                SECTION

                                              	
                                                TYPE

                                              	
                                                POINT
      VALUE

                                              
	
                                                I

                                              	
                                                 Prerequisite
      – Successful Completion of Phase I

                                                 

                                              	
                                                None

                                              
	
                                                II

                                              	
                                                 Prerequisite
      – Electrofusion/Heat Fusion 

                                                 Qualification

                                              	 
      
	
                                                III

                                              	
                                                 Demonstrative
      Test – Plastic Fusion

                                              	 
      
	
                                                IV

                                              	
                                                 Written
      Assessment – GCS Specifications

                                              	 
      
	
                                                V

                                              	
                                                 Demonstrative
      Test – New Business Main 

                                                 Installation

                                                 

                                              	 
      
	
                                                VI

                                              	
                                                 Demonstrative
      Test – Work Order Completion

                                              	 
      
	
                                                VII

                                              	
                                                 Demonstrative
      Test – Daily Progress Reports

                                              	 
      
	
                                                VIII

                                              	
                                                 Leadership
      Competencies (method to be determined  

                                                 and
      agreed upon by the Company and the Union)

                                              	 
      
	 
      	 
      	 
      
	 
      	 
      

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    

    

    Proposed
training time for Phase II – up to 12 weeks

    Propose
certification time – 45 days

    

    Weighting
of each criteria to be determined

    

    
      
        13 

      

      
         

        
          

        

      

      
         

      

    

    

    Exhibit
V

     

     

    Nicor
Gas Pension Plan

    Effective
March 1, 2009

    

    The
pension band increases are 2.0% in 2009, 2.0% in 2010, 2.0% in 2011, 2.0% in
2012, and 2.0%
in 2013.

    The
pension bands effective March 1, 2009 through February 28, 2014 will be as
follows:

    

    

    DOLLARS
PER MONTH PER YEAR OF SERVICE

    
      
        
          
            
              	
                      Pension
      Bands

                    	 	 	
                      03/01/2009
      thru 

                      2/28/2010

                    	 	 	
                      03/01/2010
      thru 

                      2/28/2011

                    	 	 	
                      03/01/2011
      thru 

                      2/29/2012

                    	 	 	
                      03/01/2012
      thru 

                      2/28/2013

                    	 	 	
                      03/01/2013
      thru 

                      2/28/2014

                    	 
	 	 	 	
                            
                        Thru
      

                        30

                        Years

                        Service

                      

                    	 	 	
                            
                        Over
      

                        30

                        Years

                        Service

                      

                    	 	 	
                      Thru
      

                      30
      Years Service

                    	 	 	
                      Over
      

                      30
      Years Service

                    	 	 	
                      Thru
      

                      30
      Years Service

                    	 	 	
                      Over
      

                      30
      Years Service

                    	 	 	
                      Thru
      

                      30
      Years Service

                    	 	 	
                      Over
      

                      30
      Years Service

                    	 	 	
                      Thru
      

                      30
      Years Service

                    	 	 	
                      Over
      

                      30
      Years Service

                    	 
	 	
                      1

                    	 	 	$	30.70	 	 	$	36.84	 	 	$	31.32	 	 	$	37.58	 	 	$	31.94	 	 	$	38.33	 	 	$	32.58	 	 	$	39.10	 	 	$	33.23	 	 	$	39.88	 
	 	
                      2

                    	 	 	$	36.84	 	 	$	42.95	 	 	$	37.58	 	 	$	43.81	 	 	$	38.33	 	 	$	44.69	 	 	$	39.10	 	 	$	45.58	 	 	$	39.88	 	 	$	46.49	 
	 	
                      3

                    	 	 	$	39.88	 	 	$	46.05	 	 	$	40.68	 	 	$	46.97	 	 	$	41.49	 	 	$	47.91	 	 	$	42.32	 	 	$	48.87	 	 	$	43.17	 	 	$	49.85	 
	 	
                      4

                    	 	 	$	49.16	 	 	$	55.26	 	 	$	50.15	 	 	$	56.37	 	 	$	51.15	 	 	$	57.50	 	 	$	52.17	 	 	$	58.65	 	 	$	53.22	 	 	$	59.82	 
	 	
                      5

                    	 	 	$	52.17	 	 	$	58.32	 	 	$	53.22	 	 	$	59.49	 	 	$	54.28	 	 	$	60.68	 	 	$	55.37	 	 	$	61.89	 	 	$	56.47	 	 	$	63.13	 
	 	
                      6

                    	 	 	$	58.32	 	 	$	64.49	 	 	$	59.49	 	 	$	65.78	 	 	$	60.68	 	 	$	67.10	 	 	$	61.89	 	 	$	68.44	 	 	$	63.13	 	 	$	69.81	 
	 	
                      7

                    	 	 	$	61.43	 	 	$	67.55	 	 	$	62.66	 	 	$	68.91	 	 	$	63.92	 	 	$	70.28	 	 	$	65.19	 	 	$	71.69	 	 	$	66.50	 	 	$	73.12	 
	 	
                      8

                    	 	 	$	67.55	 	 	$	73.68	 	 	$	68.91	 	 	$	75.16	 	 	$	70.28	 	 	$	76.66	 	 	$	71.69	 	 	$	78.19	 	 	$	73.12	 	 	$	79.76	 
	 	
                      9

                    	 	 	$	70.64	 	 	$	76.72	 	 	$	72.05	 	 	$	78.26	 	 	$	73.49	 	 	$	79.82	 	 	$	74.96	 	 	$	81.42	 	 	$	76.46	 	 	$	83.05	 
	 	
                      10

                    	 	 	$	73.68	 	 	$	79.83	 	 	$	75.16	 	 	$	81.42	 	 	$	76.66	 	 	$	83.05	 	 	$	78.19	 	 	$	84.71	 	 	$	79.76	 	 	$	86.41	 

            

          

        

      

    

    

    The early
retirement supplements between ages 55 and 60 will be as follows:

    

    DOLLARS
PER MONTH PER YEAR OF SERVICE

    
      
        
          
            	
                    Age
      at 

                    Retirement

                  	 	 	
                    03/01/2009
      

                    thru
      

                    2/28/2010

                  	 	 	
                    03/01/2010
      

                    thru
      

                    2/28/2011

                  	 	 	
                    03/01/2011
      

                    thru
      

                    2/29/2012

                  	 	 	
                    03/01/2012
      

                    thru
      

                    2/28/2013

                  	 	 	
                    03/01/2013
      

                    thru
      

                    2/28/2014

                  	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	
                    55

                  	 	 	$	23.09	 	 	$	23.55	 	 	$	24.03	 	 	$	24.51	 	 	$	25.00	 
	 	
                    56

                  	 	 	$	23.91	 	 	$	24.39	 	 	$	24.87	 	 	$	25.37	 	 	$	25.88	 
	 	
                    57

                  	 	 	$	24.66	 	 	$	25.16	 	 	$	25.66	 	 	$	26.17	 	 	$	26.70	 
	 	
                    58

                  	 	 	$	25.49	 	 	$	26.00	 	 	$	26.52	 	 	$	27.05	 	 	$	27.59	 
	 	
                    59

                  	 	 	$	26.30	 	 	$	26.82	 	 	$	27.36	 	 	$	27.91	 	 	$	28.46	 

          

        

      

    

    

    The early
retirement supplement between ages 60 and 62 will be as follows:

    

    
      
        
          
            
              	 	60
      - 62	 	 	$	1,314.13	 	 	$	
                      1,340.41

                    	 	 	$	1,367.22	 	 	$	1,394.56	 	 	$	1,422.45	 

            

          

        

      

    

    

     

    
      
        14

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    

    Dated:  March
12, 2009

    

    

    

    For
Nicor Gas

    

    

    

    

    

    
      /s/ PAT
LOFTUS

      
        
          

        

      

    

    Pat
Loftus

    General
Manager Labor Relations

    

    

    

    

    

    For
Union Local 19

    

    

    

    /s/ ROB
WYRWICKI

    
      
        
          

        

      

    

    Rob
Wyrwicki

    President,
Business Manager, Financial Secretary

    

    

    

    

    

    /s/ AL
TALKINGTON

    
      
        
          

        

      

    

    Al
Talkington

    Senior
Assistant Business Manager

     

     

    
      
        15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]