Document:

Exhibit 10.7

PENN VIRGINIA CORPORATION
 SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN

                    This is the Penn Virginia Corporation Supplemental Employee Retirement Plan (the “Plan”), as amended and restated effective January 1, 2001, which is maintained by Penn Virginia Corporation to provide retirement benefits for a select group of its management or highly compensated employees and those of its affiliates.  The Plan is intended to replace certain benefits eliminated or reduced through the application of provisions of the Internal Revenue Code to a tax-qualified retirement plan maintained by such employers.

ARTICLE I                   DEFINITIONS

                    The following words and phrases as used herein have the following meanings unless a different meaning is plainly required by the context:

                    1.1.          “Accounts” means Participant’s notional SERP Account, CODA Account and Employer Stock Account maintained under the Plan.

                    1.2.          “Beneficiary” means the Participant’s beneficiary as designated under the Plan on a form provided by the Committee.

                    1.3.          “Change of Control” means the circumstance deemed to have occurred if:

                                      1.3.1.     any person (a “Person”), as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (other than (i) the Sponsor and/or its wholly-owned subsidiaries, (ii) any ESOP or other employee benefit plan of the Sponsor, and any trustee or other fiduciary in such capacity holding securities under such a plan, (iii) any corporation owned, directly or indirectly, by the shareholders of the Sponsor in substantially the same proportions as their ownership of stock of the Sponsor, or (iv) a Participant or any group of Persons of which he or she voluntarily is a part), is or becomes the “beneficial owner” (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of securities of the Sponsor representing 30% or more of the combined voting power of the Sponsor’s then outstanding securities;

                                      1.3.2.     during any two-year period beginning after August 1, 1996, Directors of the Sponsor in office at the beginning of such period plus any new Director (other than a Director designated by a person who has entered into an agreement with the Sponsor to effect a transaction within the purview of subsection (i), subsection (ii) or subsection (iii) of Section 1.3.3) whose election by the Board, or whose nomination for election by the Sponsor’s shareholders, was approved by a vote of at least two-thirds of the Directors then still in office who either were Directors at the beginning of the period or whose election or nomination for election was previously so approved, shall cease for any reason to constitute
at least a majority of the Board; or

                                      1.3.3.     the Sponsor’s shareholders or the Board shall approve (i) any consolidation or merger of the Sponsor in which the Sponsor is not the continuing or surviving corporation or pursuant to which the Sponsor’s voting common stock would be converted into cash, securities and/or other property, other than a merger of the Sponsor in which holders of voting common stock immediately prior to the merger have the same proportionate ownership of shares of the common stock of the surviving corporation immediately after the merger as they had in the voting common stock immediately before, (ii) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or
substantially all the assets or earning power of the Sponsor, or (iii) the liquidation or dissolution of the Sponsor.

                    1.4.          “CODA Account” means a separate bookkeeping account established for a Participant pursuant to Section 3.2 to which amounts equal to CODA Deferral Contributions plus any Employer contributions described in Section 2.4.1 are credited.

                    1.5.          “CODA Deferral Contributions” means Deferral Contributions that are described by Section 2.4, and are credited to a Participant’s CODA Account.

                    1.6.          “Code” means the Internal Revenue Code of 1986, as amended.

                    1.7.          “Committee” means the Plan’s administrative committee appointed by the Sponsor.

                    1.8.          “Company” means the Sponsor and any other employer that adopts the Plan for its Eligible Employees, with the consent of the board of directors of the Sponsor.

                    1.9.          “Compensation” with respect to a Participant means base pay and bonus without taking into account the dollar limit of $150,000 (indexed for inflation) set forth in section 401(a)(17) of the Code ($170,000 in 2001).

                    1.10.        “Contribution Year” means, as of a particular date, the preceding calendar year.

                    1.11.        “Date of Hire” means the first day that an employee begins employment with the Company.

                    1.12.        “Deferral Contributions” means the amount by which a Participant’s Compensation is reduced before such Compensation becomes currently available to the Participant.  Deferral Contributions include CODA Deferral Contributions and SERP Deferral Contributions.

                    1.13.        “Determination Date” means the date as of which a determination or calculation is made.

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                    1.14.        “Employer Stock Account” means a separate bookkeeping account established for a Participant pursuant to Section 3.3 to which amounts equal to Employer Stock Contributions are credited.

                    1.15.        “Employer Stock Contributions” means amounts described in Section 2.5 that are credited to a Participant’s Employer Stock Account.

                    1.16.        “Eligible Employee” means (i) any employee of the Company who has base pay actually paid (without offset by 401(k) deferral contributions) during the Contribution Year that equals or exceeds $100,000, or (ii) in the case of an employee of the Company who has a Date of Hire in the year of determination, an annual rate of base pay that equals or exceeds $100,000.

                    1.17.        “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

                    1.18.        “ESOP” means the Penn Virginia Corporation and Affiliated Companies Employee Stock Ownership Plan, intended to be an employee stock ownership plan within the meaning of sections 409 and 4975(c) of the Code.

                    1.19.        “Hardship” means, as determined by the Committee, a severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or Participant’s dependent (as defined in section 152 of the Code), uninsured loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.

                    1.20.        “Participant” means an Eligible Employee who meets the requirements of Section 2.1.               

                    1.21.        “Plan” means the Penn Virginia Corporation Supplemental Employee Retirement Plan described by this document.

                    1.22.        “Plan Year” means the calendar year.

                    1.23.        “SERP Account” means a separate bookkeeping account established for a Participant pursuant to Section 3.1 to which amounts equal to SERP Deferral Contributions are credited.

                    1.24.        “SERP Deferral Contributions” means Deferral Contributions described by Section 2.3 of the Plan and credited to a Participant’s SERP Account in accordance with Section 3.1.

                    1.25.        “Sponsor” means Penn Virginia Corporation.

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                    1.26.        “Value” means the amount of cash that the liquidation of the hypothetical investments of the Participant’s Account, or any portion thereof, yields as of the date of such liquidation.

                    1.27.        “Year of Service” means one calendar year, measured from an employee’s Date of Hire, during which the employee is in the employ of the Company.

                    1.28.        “401(k) Plan” means the Penn Virginia Corporation and Affiliated Companies Employees’ 401(k) Plan which is intended to be qualified under sections 401(a) and 401(k) of the Code.

ARTICLE II              PARTICIPATION

                    2.1.          Eligibility Requirements.  Each Eligible Employee shall be eligible to participate in the Plan.  An Eligible Employee shall be a Participant in the Plan as of the first payroll period of the calendar quarter beginning on or after he or she validly elects to participate in the Plan following the completion of one Year of Service.  Notwithstanding the foregoing, the Committee may, in its sole and absolute discretion, permit any Eligible Employee to begin participating in the Plan as of the first payroll period of the month beginning on or after his or her Date of Hire, or at any time thereafter.

                    2.2.          Election to Participate.  An Eligible Employee may participate in the Plan by electing to make Deferral Contributions under the Plan.  An election to have Compensation withheld pursuant to this Section 2.2 shall remain in effect until amended or revoked in accordance with Section 2.6.

                    2.3.          SERP Deferral Contributions.  An Eligible Employee may elect to make SERP Deferral Contributions by reducing his or her Compensation by any amount up to 100%, less the Participant’s CODA Deferral Contributions and the amount of the Participant’s deferral contributions to the 401(k) Plan, if any.  An Eligible Employee shall make his or her election by filing a form with the Committee that specifies the percentage or dollar amount of Compensation to be withheld.

                    2.4.          CODA Deferral Contributions.  If the Committee so provides for an individual Participant, he or she may elect to make CODA Deferral Contributions by reducing his or her Compensation by an amount equal to the amount he or she would otherwise be permitted to contribute to the 401(k) Plan if such Participant met all of the eligibility requirements of the 401(k) Plan.  

                                    2.4.1.     Employer Contributions to Certain Participants’ CODA Deferral Contribution Accounts.  The Company may, if the Committee so provides, in its sole and absolute discretion add a credit to a Participant’s CODA Account.  Such employer credit (the “CODA Employer Contribution”) shall not exceed the maximum matching contribution permitted under the 401(k) Plan.  One-half of any CODA Employer Contribution for a Plan Year shall be credited to such Participant’s CODA Account by March 31 of such Plan Year or within 

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90 days of the date he or she begins participating in the Plan, if later, and the second half of the CODA Employer Contribution shall be credited to such Participant’s CODA Account on or before September 30 of such Plan Year or, if later, 180 days after the first half of the CODA Employer Contribution was credited.

                                    2.4.2.     Cessation of CODA Contributions.  When a Participant becomes eligible to participate in the 401(k) Plan, he or she may no longer make CODA Deferral Contributions, but the Committee may, in its sole and absolute discretion, cause the Company to continue to credit CODA Employer Contributions pursuant to Section 2.4.1.

                    2.5.          Employer Stock Contributions.  The Company may, if the Committee so provides in its sole and absolute discretion, credit a Participant’s Employer Stock Account with an amount equal to the amount an Eligible Employee could otherwise receive under the ESOP if he or she met all of the eligibility requirements of such ESOP.  Employer Stock Contributions shall be credited in a time and manner determined by the Committee in its sole and absolute discretion.  When a Participant  becomes eligible to participate in the ESOP, he or she shall no longer be eligible to receive credits for Employer Stock Contributions.

                    2.6.          Reduction or Termination of Contributions.  A Participant may reduce the amount of or terminate salary withholding that the Company will credit to the Plan as Deferral Contributions by filing a revised election form with the Committee before the date such Compensation would otherwise be currently available to the Participant.  The reduction or termination of the Deferral Contributions shall be effective as of the first day of the next payroll period beginning after the receipt of the election by the Committee.

                    2.7.          Vesting.  A Participant shall be 100% vested at all times in his or her Deferral Contributions, CODA Employer Contributions and Employer Stock Contributions, if applicable, and any earnings credited thereon.

ARTICLE III             INVESTMENT OF THE ACCOUNTS

                    3.1.          Establishment of the SERP Account.  The Committee shall establish and maintain a notionalaccount for each Participant who elects salary withholding under Section 2.3.

                                    3.1.1.     Crediting of Amount to the SERP Account.  An amount equal to the Compensation withheld shall be credited to a Participant’s SERP Account not later than 60 days after the date such Compensation would otherwise have been paid to the Participant.  Hypothetical earnings, gains and losses, if any, on the balance standing to the credit of the SERP Account shall be credited or debited to the SERP Account as provided in Section 3.1.2.

                                    3.1.2.     Hypothetical Investment of the SERP Account.  The Committee may cause each Participant’s SERP Account to be hypothetically invested in accordance with a written investment direction provided to the Committee by the Participant.  A Participant may only direct that the Committee invest his or her SERP Account in any investment available under the 401(k) Plan at the time such direction is given.  A Participant may change his or her 

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investment direction quarterly.  Such election shall be effective as of the first day of the calendar quarter following the request of such change by the Committee.  A Participant’s SERP Account shall be credited or debited with all hypothetical earnings, gains, losses and ordinary expenses incurred through execution of his or her investment directions.  If the Participant or Committee determines not to invest the Participant’s SERP Account, the SERP Account shall be assumed to be invested at the interest rate at which First Union National Bank is lending to its most credit-worthy customers less 2%; provided that in no event shall such rate exceed 8%.

                    3.2.          Establishment of the CODA Account.  The Committee shall establish and maintain a notional account for each Participant who is permitted by the Committee to elect salary withholding under Section 2.4.

                                    3.2.1.     Crediting of Amount to the CODA Account.  An amount equal to the Compensation withheld pursuant to Section 2.4 shall be credited to a Participant’s CODA Account not later than 60 days after the date such Compensation would otherwise have been paid to the Participant.  Hypothetical earnings, gains and losses, if any, on the balance standing to the credit of the CODA Account shall be credited or debited to the CODA Account as provided in Section 3.2.2.  CODA Employer Contributions shall be credited as provided under Section 2.4.1.

                                    3.2.2.     Hypothetical Investment of the CODA Account.  The Committee may cause each Participant’s CODA Account to be hypothetically invested in accordance with a written investment direction given in accordance with Section 3.1.2; provided, however, that a Participant may elect to have his or her CODA Account invested only in the investments then available under the 401(k) Plan.  If the Participant or Committee determines not to invest the Participant’s CODA Account, the CODA Account shall be assumed to be invested at the interest rate at which First Union National Bank is lending to its most credit-worthy customers less 2%; provided that in no event shall such rate exceed 8%.

                    3.3.          Establishment of the Employer Stock Account.  The Committee shall establish and maintain a notional account for each Participant who is permitted by the Committee to receive an Employer Stock Contribution under Section 2.5.

                                    3.3.1.     Crediting of Amount to the Employer Stock Account.  The amount of contribution provided for under Section 2.5 shall be credited to a Participant’s Employer Stock Account not later than 60 days after the amount of such contribution is determined.  Hypothetical earnings, gains and losses, if any, on the balance standing to the credit of the Employer Stock Account shall be credited or debited to the Employer Stock Account as provided in Section 3.3.2.

                                    3.3.2.     Hypothetical Investment of the Employer Stock Account.  The Committee may cause each Participant’s Employer Stock Account to be hypothetically invested in the common stock issued by the Company or shares of preferred stock issued by the Company convertible into such common stock, which shares shall constitute “qualifying employer securities” under section 407(d)(5) of ERISA, and sections 409(l) and 4975(e)(8) of the Code.  If the Participant or Committee determines not to invest the Participant’s Employer Stock Account, 

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the Employer Stock Account shall be assumed to be invested at the interest rate at which First Union National Bank is lending to its most credit-worthy customers less 2%; provided that in no event shall such rate exceed 8%.

                    3.4.          Function of Committee.  Each Participant agrees that the Company and the Committee are in no way responsible for the investment results of the Participant’s notional Accounts, whether or not the Account is hypothetically invested in accordance with the Participant’s direction.

ARTICLE IV            DISTRIBUTION OF BENEFITS

                    4.1.          Accounts.  Subject to Section 4.2, the Value of a Participant’s Accounts shall be distributed as soon as administratively feasible following the earlier of (i) the Participant’s termination of employment with the Sponsor and all of its affiliates for any reason other than death, or (ii) a Change of Control.  In addition, a Participant may receive a distribution of all or a portion of the Value of his or her vested Accounts while employed by the Company in accordance with Section 4.4.

                    4.2.          Death.  Upon a Participant’s death while employed by the Sponsor, another Company or one of their affiliates, the Value of the Participant’s Accounts shall be distributed to his or her Beneficiary as soon as administratively feasible following such death.

                    4.3.          In-Service Withdrawals from the Accounts.  A Participant may receive a distribution of all or any portion of the Value of his or her Accounts in accordance with this Section 4.3.

                                    4.3.1.     Prospective Election.  A Participant may withdraw all or any portion of the Value of his or her Accounts during a Plan Year, provided he or she has submitted an election form requesting the withdrawal to the Committee no later than the December 15 of the Plan Year preceding the year of intended withdrawal (the “Election Date”).  The election form shall be irrevocable as of the applicable Election Date and, to be valid, must specify (i) the percentage of the Participant’s Accounts he or she elects to withdraw, and (ii) the date the withdrawal shall be made, which shall in no event be earlier than March 1 of the Plan Year following the Election Date.

                                    4.3.2.     Hardship Withdrawal.  A Participant may withdraw all or any portion of the Value of his or her Accounts during a Plan Year by submitting a written request to the Committee, provided that the Committee determines that the Participant has incurred a Hardship and that the withdrawal is necessary to alleviate such Hardship.  The Committee shall deem a distribution to be necessary to alleviate a Hardship if:

	
  
 
  	
  
              4.3.2.1.          the   distribution is not in excess of the amount of the Participant’s Hardship and   a reasonable estimate of taxes on such amount; and
  

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              4.3.2.2.          the   Hardship may not be relieved through reimbursement by insurance or otherwise,   by liquidation of the Participant’s assets (to the extent that such   liquidation would not itself cause severe financial hardship) or by cessation   of Deferral Contributions under the Plan.
  

                                    4.3.3.     Penalty Withdrawal.  A Participant who is not eligible for a withdrawal pursuant to Section 4.3.1 or Section 4.3.2 may withdraw all or any portion of the Value of his or her Accounts at any time during the Plan Year by submitting an election form to the Committee.  To receive a distribution pursuant to this Section 4.3.3, the Participant shall (i) irrevocably forfeit from his or her Accounts an amount equal to 5%of the value of the requested distribution, and (ii) not be permitted to make Deferral Contributions to the Plan for a period of two years after the date of distribution.

                                    4.3.4.      Method of Withdrawals.  A withdrawal pursuant to Section 4.3.1, Section 4.3.2 or Section 4.3.3 will be taken on a pro rata basis from the Accounts, unless the Participant requests a different manner and the Committee approves such a manner in its sole and absolute discretion.

                    4.4.          Administration of In-Service Withdrawals.  The portion of a Participant’s Accounts not distributed pursuant to Section 4.3 shall remain in the Plan, except for any amount forfeited under Section 4.3.3.  Distributions shall be made as soon as administratively feasible after the Committee has reviewed and approved the request.

ARTICLE V              ADMINISTRATION

                    The Plan shall be administered by the Committee; provided, however, that any member of the Committee who is a Participant in the Plan shall be precluded from voting on any matter relating solely to his or her rights under the Plan.  The Committee shall have the authority, responsibility and discretion to interpret and construe the Plan and to decide all questions arising thereunder, including, without limitation, questions of eligibility for participation, eligibility for benefits and the time of the distribution thereof, and shall have the authority to deviate from the literal terms of the Plan to the extent the Committee shall determine to be necessary or appropriate to operate the Plan in compliance with the provisions of applicable law.

ARTICLE VI             AMENDMENT AND TERMINATION

                    6.1.          Amendment.  The Sponsor reserves the right, by action of its board of directors, to amend the Plan at any time, in any manner whatsoever; provided, however, that no such amendment shall operate to reduce the accrued benefit of any Participant, or that which his or her Beneficiary would receive in the event of his or her death.

                    6.2.          Termination of the Plan.  Continuance of the Plan is completely voluntary and is not assumed as a contractual obligation of the Sponsor or any other Company.  The Sponsor and each other Company shall have the right at any time, prospectively, to discontinue the Plan as to its Eligible Employees; provided, however, that such termination shall not operate to reduce the accrued benefit of any Participant, or that which his or her Beneficiary would receive in the event of his or her death.

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                    6.3.          Limitation.  Notwithstanding anything to the contrary contained herein, Sections 2.7, 4.1, 6.1 and 6.2 shall become irrevocable upon a Change of Control.

ARTICLE VII          MISCELLANEOUS

                    7.1.          Claims Procedure.  The Committee shall administer a claims procedure as follows:

                                    7.1.1.     Initial Claim.  A Participant or Beneficiary who believes himself or herself entitled to benefits hereunder (the “Claimant”), or the Claimant’s authorized representative acting on behalf of such Claimant, must make a claim for those benefits by submitting a written notification of his or her claim of right to such benefits.  Such notification must be on the form and in accordance with the procedures established by the Committee.  Except for benefits paid pursuant to Section 4.2, no benefit shall be paid under the Plan until a proper claim for benefits has been submitted.

                                    7.1.2.     Procedure for Review.  The Committee shall establish administrative processes and safeguards to ensure that all claims for benefits are reviewed in accordance with the Plan document and that, where appropriate, Plan provisions have been applied consistently to similarly situated Claimants.  Any notification to a Claimant required hereunder may be provided in writing or by electronic media, provided that any electronic notification shall comply with the applicable standards imposed under DOL Reg. §2520.104b-1(c).

                                    7.1.3.     Claim Denial Procedure.  If a claim is wholly or partially denied, the Committee shall notify the Claimant within a reasonable period of time, but not later than 90 days after receipt of the claim, unless the Committee determines that special circumstances require an extension of time for processing the claim.  If the Committee determines that an extension of time for processing is required, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial 90-day period.  In no event shall such extension exceed a period of 180 days from receipt of the claim.  The extension notice shall indicate: (i) the special circumstances necessitating the
extension and (ii) the date by which the Committee expects to render a benefit determination.  A benefit denial notice shall be written in a manner calculated to be understood by the Claimant and shall set forth:  (i) the specific reason or reasons for the denial, (ii) the specific reference to the Plan provisions on which the denial is based, (iii) a description of any additional material or information necessary for the Claimant to perfect the claim, with reasons therefor, and (iv) the procedure for reviewing the denial of the claimand the time limits applicable to such procedures, including a statement of the Claimant’s right to bring a legal action under section 502(a) of ERISA following an adverse benefit determination on review.  

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                                    7.1.4.     Appeal Procedure.  In the case of an adverse benefit determination, the Claimantor his or her representative shall have the opportunity to appeal to the Committee for review thereof by requesting such review in writing to the Committee within 60 days of receipt of notification of the denial.  Failure to submit a proper application for appeal within such 60 day period will cause such claim to be permanently denied.  The Claimantor his or her representative shall be provided, upon request and free of charge, reasonable access to, and copies of, all documents, records and other information relevant to the claim.  A document, record or other information shall be deemed “relevant” to a
claim in accordance with DOL Reg. §2560.503-1(m)(8).  The Claimant or his or her representative shall also be provided the opportunity to submit written comments, documents, records and other information relating to the claim for benefits.  The Committee shall review the appeal taking into account all comments, documents, records and other information submitted by the Claimant or his or her representative relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

                                    7.1.5.     Decision on Appeal.  The Committee shall notify a Claimant of its decision on appeal within a reasonable period of time, but not later than 60 days after receipt of the Claimant’s request for review, unless the Committee determines that special circumstances require an extension of time for processing the appeal.  If the Committee determines that an extension of time for processing is required, written notice of the extension shall be furnished to the Claimant prior to the termination of the initial 60-day period.  In no event shall such extension exceed a period of 60 days from the end of the initial period.  The extension notice shall indicate: (i) the special circumstances
necessitating the extension and (ii) the date by which the Committee expects to render a benefit determination.  An adverse benefit decision on appeal shall be written in a manner calculated to be understood by the Claimant and shall set forth:  (i) the specific reason or reasons for the adverse determination, (ii) the specific reference to the Plan provisions on which the denial is based, (iii) a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to and copies of all documents, records, and other information relevant to the Claimant’s claim (the relevance of a document, record or other information will be determined in accordance with DOL Reg. §2560.503-1(m)(8)) and (iv) a statement of the Claimant’s right to bring a legal action under section 502(a) of ERISA.

                                    7.1.6.     Litigation.  In order to operate and administer the claims procedure in a timely and efficient manner, any Claimant whose appeal with respect to a claim for benefits has been denied, and who desires to commence a legal action with respect to such claim, must commence such action in a court of competent jurisdiction within 90 days of receipt of notification of such denial.  Failure to file such action by the prescribed time will forever bar the commencement of such action.  

                    7.2.          Title to Assets.  Title to and beneficial ownership of any assets, whether cash or investments, that the Company may set aside or earmark to meet its obligations hereunder, shall at all times remain in the Company; provided that the trustee shall hold legal title to any assets placed in a trust.  No Participant or Beneficiary shall under any circumstances acquire any property interest in any specific assets set aside in trust by the Company.  Any funds 

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that may be invested under the provisions of the Plan shall continue for all purposes to be a part of the general funds of the Company and no person other than the Company shall by virtue of the provisions of the Plan have any interest in such funds.  To the extent that any person acquires a right to receive payments under the Plan, such right shall be no greater than the right of any other unsecured general creditor of the Company.

                    7.3.          Non-alienation.  The right of a Participant or any other person to the payment of any benefit hereunder shall not be assigned, transferred, pledged or encumbered.

                    7.4.          Incapacity.  If the Committee shall find that any person to whom any payment is due under the Plan is unable to care for his or her affairs because of illness or accident, or is a minor, any payment due (unless a prior claim therefor shall have been made by a duly appointed guardian or other legal representative) may be paid to the person deemed by the Committee to have responsibility for such person otherwise entitled to payment, in such manner and proportions as the Committee may determine.  Any such payment shall be a complete discharge, to the extent of the payment, of the liabilities of the Plan, the Company, the Committee, and the trustee.

                    7.5.          No Employment Contract.  Nothing contained herein shall be construed as conferring upon a Participant the right to continue in the employ of the Company in any capacity.

                    7.6.          Succession.  The Plan and any related agreements shall be binding upon and inure to the benefit of the Company, and its successors and assigns, and the Participants and their heirs, executors, administrators and legal representatives.

                    7.7.          Number.  For purposes of the Plan, the singular shall include the plural, and vice versa.

                    7.8.          Governing Law.  The Plan shall be construed in accordance with and governed by the laws of the Commonwealth of Pennsylvania, except to the extent superseded by federal law.

                    IN WITNESS WHEREOF, Penn Virginia Corporation has caused its duly authorized officers to execute this amendment and restatement of the Plan as of the 29th day of July, 2001.

	
   
  	
  
 
  	
  
 
  	
  
PENN VIRGINIA CORPORATION
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Attest: 
  	
  
/s/ Nancy M. Snyder
  	
  
 
  	
  
By:  
  	
  
/s/ A. James Dearlove
  
	
  
 
  	
  

  	
  
 
  	
  
 
  	
  

  

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AMENDMENT NO. 1
 TO THE 
 PENN VIRGINIA CORPORATION
 SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN

          Penn Virginia Corporation (the “Company”) wishes to amend the Penn Virginia Corporation Supplemental Employee Retirement Plan (the “Plan”) to offer the cancellation opportunity offered in IRS transition guidance under section 409A of the Internal Revenue Code, effective for the 2005 Plan Year. Therefore, pursuant to the power reserved to it in Section 6.1 of the Plan, the Company amends the Plan, effective January 1, 2005, as follows:

          A new Section
2.8 is hereby added to the Plan to read in its entirety as follows:

	
  
 
  	
  
“2.8.          Special   2005 Transition Rule for Bonus Compensation Earned in 2005.  Notwithstanding anything in the Plan to   the contrary, consistent with section 409A of the Code and the guidance   issued thereunder, any Participant who made an election to defer all or a   portion of his Compensation that is a bonus earned in 2005 (payable in 2006)   (the “2005 Bonus”) may cancel his election relating to his 2005 Bonus by   notifying the Committee in writing in a form acceptable to the   Committee.  A Participant must make   such election on or before December 16, 2005.  The entire amount of such 2005 Bonus shall be paid to the   Participant in 2006 and includible in his income in 2006.”
  	
  
 
  

                    To record the adoption of this Amendment No. 1 to the Plan, the Company has caused its authorized officers to affix its corporate name and seal as of this 23rd day of January 2006. 

 

	
  
[CORPORATE SEAL]
  	
  
 
  	
  
PENN VIRGINIA CORPORATION
  
	  
	  
	  
	  
	  

	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
Attest:
  	
  
/s/ Nancy M. Snyder
  	
  
 
  	
  
By:
  	
  
/s/ A. James Dearlove
  
	
   
  	
  

  	
   
  	
   
  	
  

  
	
   
  	
  Nancy M. Snyder
  	
   
  	
   
  	
  A. James Dearlove
  
	
   
  	
   
  	
   
  	
   
  	
  President and Chief Executive Officer
  

- 12 -Exhibit 10.8

PENN VIRGINIA CORPORATION
 NON-EMPLOYEE DIRECTORS 
 DEFERRED COMPENSATION PLAN

Effective April 15, 2004

PENN VIRGINIA CORPORATION
 NON-EMPLOYEE DIRECTORS 
 DEFERRED COMPENSATION PLAN

TABLE OF CONTENTS

	
   
 	
   
 	
  
Page
  
	
   
 	
   
 	
  

  
	
  
ARTICLE I PURPOSE AND EFFECTIVE DATE
  	
  
1
  
	
  
1.1.
  	
  
Purpose.
  	
  
1
  
	
  
1.2.
  	
  
Effective Date.
  	
  
1
  
	
   
  	
   
 
	
  
ARTICLE II DEFINITIONS
  	
  
1
  
	
  
 
  	
   
 
	
  
ARTICLE III ELIGIBILITY
  	
  
4
  
	
  
3.1.
  	
  
Eligibility.
  	
  
4
  
	
  
3.2.
  	
  
Participation and Deferral Agreements.
  	
  
5
  
	
  
 
  	
   
 
	
  
ARTICLE IV CONTRIBUTIONS
  	
  
5
  
	
  
4.1.
  	
  
Fee Deferrals.
  	
  
5
  
	
  4.2.
  	
  
Share Grant Deferrals.
  	
  
6
  
	
  
4.3.
  	
  
Automatic Share Distribution Deferral.
  	
  
6
  
	
  
 
  	
   
 
	
  
ARTICLE V DETERMINATION OF ACCOUNTS
  	
  
7
  
	
  
5.1.
  	
  
Account Establishment.
  	
  
7
  
	
  
5.2.
  	
  
Deferrals.
  	
  
7
  
	
  
5.3.
  	
  
Earnings on Fee Deferrals and Share Distributions.
  	
  
7
  
	
  
5.4.
  	
  
Distributions.
  	
  
7
  
	
  5.5.
  	
  
Adjustments.
  	
  
7
  
	
  
 
  	
   
 
	
  
ARTICLE VI VESTING
  	
  
8
  
	
  
6.1.
  	
  
Fee Deferrals.
  	
  
8
  
	
  
6.2.
  	
  
DCSs.
  	
  
8
  
	
  
6.3.
  	
  
Share Distributions.
  	
  
8
  
	
  
 
  	
   
 
	
  
ARTICLE VII DISTRIBUTIONS
  	
  
8
  
	
  
7.1.
  	
  
Normal Distribution Date.
  	
  
8
  
	
  7.2.
  	
  
Alternative Distribution Election.
  	
  
8
  
	
  
7.3.
  	
  
Hardship Withdrawals.
  	
  
8
  
	
  
7.4.
  	
  
Death Benefits.
  	
  
9
  
	
  
7.5.
  	
  
Form of Payment.
  	
  
9
  

- i -

	
  
ARTICLE VIII NO FUNDING
  	
  
9
  
	
  
 
  	
   
 
	
  ARTICLE IX ADMINISTRATION
  	
  
9
  
	
  
9.1.
  	
  
Administration.
  	
  
9
  
	
  
9.2.
  	
  
Administrative Review.
  	
  
10
  
	
  
9.3.
  	
  
General.
  	
  
10
  
	
  
 
  	
   
 
	
  
ARTICLE X AMENDMENT, DISCONTINUANCE AND TERMINATION
  	
  
10
  
	
  
 
  	
   
 
	
  
ARTICLE XI MISCELLANEOUS
  	
  
10
  
	
  
11.1.
  	
  
No Rights to Board Membership.
  	
  
10
  
	
  11.2.
  	
  
Rights of Participants to Benefits.
  	
  
11
  
	
  
11.3.
  	
  
No Assignment.
  	
  
11
  
	
  
11.4.
  	
  
Withholding.
  	
  
11
  
	
  
11.5.
  	
  
Account Statements.
  	
  
11
  
	
  
11.6.
  	
  
Number.
  	
  
11
  
	
  
11.7.
  	
  
Titles.
  	
  
11
  
	
  
11.8.
  	
  
Governing Law.
  	
  
11
  
	
  11.9.
  	
  
Other Plans.
  	
  
11
  

- ii -

PENN VIRGINIA CORPORATION
 NON-EMPLOYEE DIRECTORS 
 DEFERRED COMPENSATION PLAN

ARTICLE I
 PURPOSE AND EFFECTIVE DATE

                    1.1.          Purpose.  The Plan is intended to provide deferred compensation for non-employee directors of Penn Virginia Corporation.  The Plan is an unfunded plan that does not cover any employees and thus is not subject to the Employee Retirement Income Security Act of 1974, as amended, nor is it intended to qualify under section 401(a) of the Code.

                    1.2.          Effective
Date.  The Plan is effective April 15, 2004.  

ARTICLE II
 DEFINITIONS

                    As used herein, the following terms shall have the following meanings:

                    2.1.          “Account” means the bookkeeping reserve account established and maintained for each Participant pursuant to Article V solely to determine the amount payable to the Participant pursuant to Article VII and shall not constitute a separate fund of assets.  Each such Account shall consist of such subaccounts as the Committee deems necessary or desirable for the administration of the Plan.

                    2.2.          “Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.

                    2.3.          “Beneficiary” means the person(s), trust(s) or other entities the Participant designates, in accordance with procedures established by the Committee, to receive any benefits under the Plan after the death of the Participant.  If the Participant has not designated a Beneficiary, or if no Beneficiary survives the Participant, the Participant’s rights related to Common Stock under the terms of the Directors’ Stock Compensation Plan and the aggregate amount of Fee Deferrals (and earnings thereupon) credited to the Participant’s Account shall pass by will or the laws of descent and distribution.

                    2.4.          “Board” means the Board of Directors of the Company.

- 1 -

                    2.5.          “Cessation of Service” means the removal of a Director from the Board pursuant to applicable provisions of the Company’s by-laws or the voluntary resignation by a Director of his or her membership on the Board.

                    2.6.          “Change in Control” shall be deemed to have occurred upon the occurrence any of the following events:    

                                     (a)          The acquisition, after April 15, 2004, directly or indirectly, by any Person (as defined below) or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of “beneficial ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of equity securities of the Company that entitle the “beneficial owners” thereof to control more than fifty percent (50%) of the total combined voting power of the Company; provided, however, any acquisition, directly or indirectly, by or from the Company, any Affiliate of the Company or any employee benefit plan (or
related trust) sponsored or maintained by the Company, shall not constitute a Change in Control. 

                                     (b)          Approval, after
April 15, 2004, by the equity security holders of the Company or the occurrence
of a merger, reorganization, consolidation, exchange of equity interests,
recapitalization, restructuring or other business combination that results in
beneficial ownership of more than fifty percent (50%) of the total voting power
of the Company being transferred to a Person (as defined below), unless the
equity security holders of the Company immediately before such transaction
beneficially own, directly or indirectly, immediately following such
transaction, at least a majority of the combined voting power of the outstanding
voting securities of the Person resulting from such transaction or the Person
acquiring such properties and assets, entitled to vote generally on the election
of such resulting or acquiring Person’s directors, in substantially the
same proportion as their ownership of such equity securities immediately before
such transaction; 

                                     (c)          After April 15,
2004, (i) the equity security holders of the Company approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the
Company of all or substantially all of the Company’s assets or (ii) the
occurrence of a sale of all or substantially all of the assets of the Company;
or 

                                     (d)          Individuals who,
after April 15, 2004, constitute the Board and any new director (other than a
director designated by a Person who has entered into an agreement with the
Company to effect a transaction described in clause (a), clause (b) or
clause (c) of this definition or any such individual whose initial
assumption of office occurs as a result of either an actual or threatened
election contest (as such terms are used in Rule 14a-l 1 of Regulation 14A
promulgated under the Exchange Act) or other actual or threatened solicitation
of proxies or consents) whose election by the Board or nomination for election
by the Company’s equity security holders was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either were directors
at the beginning of such period or whose election or nomination for election was
previously so approved, cease for any reason to constitute a majority of the
Board.

- 2 -

                    2.7.          “Code” means the Internal Revenue Code of 1986, as amended.

                    2.8.          “Committee” means the Compensation and Benefits Committee of the Board or such other committee or subcommittee of the Board appointed by the Board to administer the Plan.

                    2.9.          “Common Stock” means the common stock, par value $6.25 per share, of the Company and awarded under the Directors’ Stock Compensation Plan.

                    2.10.          “Company” means Penn Virginia Corporation.

                    2.11.          “Deferral Agreement” means the written agreement entered into between the Participant and the Company pursuant to Article III.

                    2.12.          “Deferred Common Stock” or “DCS” means a notional entry that is entered in a Participant’s Account and that represents the right to Common Stock in accordance with the terms of the Directors’ Stock Compensation Plan.

                    2.13.          “Directors’ Stock Compensation Plan” means the Penn Virginia Corporation Third Amended and Restated 1995 Directors’ Stock Compensation Plan, as amended from time to time.

                    2.14.         “Fee” means base compensation for services as a Non-Employee Director and shall include (a) quarterly payments and meeting fees pursuant to Sections 5(ii) and 5(iii), respectively, of the Directors’ Stock Compensation Plan to the extent the director elects to receive such payments in cash and (b) any other additional cash compensation for services as a Non-Employee Director.  Fees shall not include expense allowances or reimbursements.

                    2.15.          “Fee Deferrals” means part or all of Fees, the receipt of which is deferred by the Participant pursuant to Section 4.1.

                    2.16.          “Non-Employee Director” means each director of the Company who is not an employee of the Company or any of the Company’s subsidiaries (as defined in section 425(f) of the Code).

                    2.17.          “Normal Distribution Date” means January 1 of the calendar year following the calendar year of the earlier to occur of the Participant’s attainment of age 70 or Cessation of Service.

                    2.18.         “Participant” means an individual who is eligible to participate in the Plan pursuant to Article III and who has delivered an executed Deferral Agreement to the Committee in accordance with the provisions of Article III.  Such individual shall remain a Participant in the Plan until such time as all benefits payable under the Plan have been paid in accordance with the provisions hereof or the Plan is terminated in accordance with Article X.

- 3 -

                    2.19.          “Person” means a “person” as defined in section 3(a)(9) of the Exchange Act, as modified, applied and used in sections 13(d) and 14(d) thereof; provided, however, a Person shall not include (a) the Company or any of its subsidiaries, (b) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its subsidiaries (in its capacity as such), (c) an underwriter temporarily holding securities pursuant to an offering of such securities, or (d) a corporation owned, directly or indirectly, by the shareholders of the Company in substantially the same character and proportions as their ownership of equity of the Company.

                    2.20.          “Plan Year” means the calendar year.

                    2.21.          “Share” means a share of Common Stock.

                    2.22.          “Share Distribution” means distributions made with respect to any Share deferred under this Plan.

                    2.23.          “Share Grant” means a grant of Shares under the Directors’ Stock Compensation Plan, which is subject to deferral hereunder and shall include (a) the annual grant of Shares pursuant to Section 5(i) of the Directors’ Stock Compensation Plan and (b) quarterly payments and meeting fees pursuant to Sections 5(ii) and 5(iii), respectively, of the Directors’ Stock Compensation Plan to the extent the director elects to receive such payments in Shares.  

                    2.24.          “Share Grant Deferrals” means part or all of the Share Grant payable under the Directors’ Stock Compensation Plan, the receipt of which is deferred by the Participant pursuant to Section 4.2.

                    2.25.         “Tranche” means the amount of Fee Deferrals and Share Deferrals credited to a Participant’s Account during any one Plan Year.

                    2.26.          “Valuation Date” means the business day used for purposes of valuing the Fee Deferrals and Share Grant Deferrals credited to a Participant’s Account prior to a distribution described in Article VII.

ARTICLE III
 ELIGIBILITY

                    3.1.          Eligibility.  Each Non-Employee Director who is selected by the Committee shall be eligible to become a Participant as of the date designated by the Committee.  An eligible Director shall remain eligible to submit a Deferral Agreement until such time as the Committee affirmatively revokes such Director’s eligibility.  Eligible Directors, whether their eligibility has been revoked or not, shall remain Participants in the Plan until such time as all benefits payable under the Plan have been paid in accordance with the provisions hereof or the Plan has been terminated in accordance with Article X.

- 4 -

                    3.2.          Participation and Deferral Agreements.  To become a Participant and receive credit for Fee Deferrals and Share Grant Deferrals in such Participant’s Account, an eligible Non-Employee Director must deliver an executed Deferral Agreement in the form and manner prescribed by the Committee and in accordance with the restrictions described in this Section 3.2.  A Director may separately elect to defer Share Grants and Fees.

                                    (a)          Newly Eligible Directors.  Each newly eligible Director who elects to participate in the Plan must deliver an executed Deferral Agreement to the Committee within thirty (30) days after the Committee notifies the Director of his or her eligibility to participate.  Such Deferral Agreement shall be effective with regard to the Fees earned and Share Grants that are otherwise payable for periods beginning on the effective date of such Director’s commencement of participation in the Plan.

                                    (b)          Previously Eligible Directors.  Except as provided in Section 3.2(a) above, an eligible Director may make a deferral election with respect to a subsequent Plan Year by delivering an executed Deferral Agreement to the Committee on or before December 31 of the year immediately preceding the Plan Year to which such deferral election is to apply.

                                    (c)          Subsequent Elections.  A Participant’s executed Deferral Agreement with respect to Fee Deferrals and Share Grant Deferrals shall be effective only with respect to the specific Plan Year to which such Deferral Agreement applies and shall not be effective for any subsequent Plan Year.

ARTICLE IV
 CONTRIBUTIONS

                    4.1.          Fee Deferrals.

                                    (a)          Pursuant to the Deferral Agreement, a Participant may defer the receipt of all or any portion of Fees payable by the Company to the Participant for services to be performed during a Plan Year.  The Participant’s executed Deferral Agreement, delivered to the Committee in accordance with the provisions of Section 3.2, shall set forth an exact whole dollar amount or a whole percentage of Fees to be deferred.  A Fee Deferral election with respect to any Plan Year is irrevocable once the applicable executed Deferral Agreement is delivered to the Committee.  A Fee Deferral election shall be automatically revoked in the event the Director is permitted to take a distribution due to
financial hardship.  Such a Director shall not be eligible to make a new Fee Deferral election under the Plan.  

                                    (b)          The amount of any Fees deferred with respect to any Plan Year shall reduce the amount of such Fees otherwise payable to the Participant as of the date such payment otherwise would have been made, and the amount of such reduction shall be allocated to the Participant’s Account effective as of the date the applicable Fees would otherwise have been payable.

- 5 -

                                    (c)          In determining the percentage amount of any Fee Deferral, the Participant’s full Fee shall be considered without regard to any deferrals made under the Plan.  In no event shall a Participant be permitted to make Fee Deferrals that exceed 100% of his or her Fees.

                    4.2.          Share Grant Deferrals.  

                                    (a)          A Participant may separately elect to defer the receipt of all or a portion of Share Grants under the Directors’ Stock Compensation Plan.  The Participant’s executed Deferral Agreement, delivered to the Committee in accordance with the provisions of Section 3.2, shall set forth a whole number of Shares or percentage of the Share Grant to be deferred.  A Share Grant Deferral election with respect to a Plan Year is irrevocable once the applicable executed Deferral Agreement is delivered to the Committee.  A Share Grant Deferral election shall be automatically revoked in the event the Director is permitted to take a distribution due to financial hardship.  Such a
Director shall not be eligible to make a new Share Grant Deferral election under the Plan.  

                                    (b)          The amount of any Share Grants deferred with respect to any Plan Year shall reduce the amount of such Share Grants otherwise due to the Participant as of the date such Share Grants otherwise would have been made, and the amount of such reduction shall be allocated to the Participant’s Account effective as of the date the applicable Share Grant would otherwise have been made.

                                    (c)          A Common Share shall be credited as a DCS to the Participant’s Account.  

                    4.3.          Automatic Share Distribution Deferral.

                                    (a)          If a Participant elects to defer the receipt of any Share Grants in accordance with Section 4.2, such Participant automatically shall be deemed to have elected to defer the receipt of each Share Distribution payable with respect to the underlying Share Grant deferred hereunder.  

                                    (b)          Any Share Distribution deferred in accordance with this shall be credited to a Participant’s Account in the same manner as Fee Deferrals.  

ARTICLE V
 DETERMINATION OF ACCOUNTS

                    5.1.          Account Establishment.  The Committee shall establish an Account on behalf of each Participant.  The establishment of an Account shall not require segregation of any funds of the Company or provide any Participant with any rights to any assets of the Company, except as a general creditor thereof.  A Participant shall have no right to receive payment of any amount credited to the Participant’s Account except as expressly provided in Article VI of this Plan.

- 6 -

                    5.2.          Deferrals.  Each Participant’s Account as of the Valuation Date shall consist of Fee Deferrals and DCSs credited to the Participant’s Account.  Each Account shall consist of such subaccounts as the Committee deems necessary or desirable to determine the amounts payable by Tranche if different distribution elections apply with respect to such Tranches.

                    5.3.          Earnings on Fee Deferrals and Share Distributions.  The Fee Deferrals and Share Deferrals portion of a Participant’s Account shall be credited with earnings quarterly, as if the balance of that portion of such Participant’s Account which represents Fee Deferrals and Share Deferrals as of the first day of such quarter on the first day of each quarter has been invested at a rate equal to the prime rate as correctly published in the Wall Street Journal on the last business day of the immediately preceding quarter.  

                    5.4.          Distributions.  Any Share Distributions payable with respect to Shares underlying DCSs, shall be credited with interest in the same manner as Fee Deferrals as described in Section 5.3.

                    5.5.          Adjustments.  In the event that the Committee determines that any distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization, split, reverse split, reorganization, merger, consolidation, split-up, spin-off combination, repurchase, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, or other similar transaction or event affects the Common Stock such that an adjustment is determined by the Committee in good faith to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Directors’ Stock Compensation Plan, then the Committee
shall, in such manner as it may deem equitable, under the Directors’ Stock Compensation Plan, adjust any or all of (i) the amount and type of Common Stock (or other securities or property) with respect to which Share Grants may be granted, and (ii) the amount and type of Common Stock (or other securities or property) subject to outstanding Share Grants; provided, that the amount of Common Stock subject to any Share Grant shall always be a whole number.

ARTICLE VI
 VESTING

                    6.1.          Fee Deferrals.  A Participant shall be one hundred percent (100%) vested at all times in the amounts of Fees elected to be deferred under the Plan and earnings credited thereon.

                    6.2.          DCSs.  A Participant shall be one hundred percent (100%) vested at all times in the DCSs credited to the Participant’s Account.

- 7 -

                    6.3.          Share Distributions.  Share Distributions paid with respect to any Share underlying a DCS will be 100% vested at all times.

ARTICLE VII
 DISTRIBUTIONS

                    7.1.          Normal Distribution Date.  Unless the Participant has elected another available distribution date in his or her executed Deferral Agreement or the Participant dies prior to such date, a Participant’s Account shall be distributed to the Participant on the Participant’s Normal Distribution Date.

                    7.2.          Alternative Distribution Election.  For each Plan Year, a Participant may elect to receive benefit distributions under the Plan on a date selected in the Participant’s Deferral Agreement for the applicable Plan Year.  In no event shall the date selected be earlier than the first day of the calendar year beginning after the third anniversary of the filing of the applicable Deferral Agreement under Section 3.2.  The Participant may file an amendment to defer further the receipt of a Tranche (and earnings credited thereon) (or a portion of the Tranche) under this paragraph only three times, and each amendment must (a) provide for a payout under this Section at a date at least twenty-four (24) months after the payout date under the election in force for
such Tranche immediately prior to the filing of such an amendment, and (b) be filed with the Committee by December 15 of the calendar year prior to the calendar year in which payment was to commence under the election then in force.

                    7.3.          Hardship Withdrawals.  The Committee shall establish procedures under which a Participant may request a withdrawal of some or all of the Participant’s Account in the event of an unforeseeable severe financial emergency.  In general, an unforeseeable severe financial emergency would include circumstances resulting from a sudden and unexpected illness or accident of the Participant or of the Participant’s spouse or dependent, uninsured loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant and for which the resulting financial hardship cannot be reasonably relieved through other sources of funds or by cessation of deferrals
under this Plan.  The Committee, in its sole and absolute discretion, shall determine whether any such financial emergency warrants a withdrawal from the Participant’s Account and shall determine the amount of such withdrawal so as to limit the withdrawal to that amount (including a reasonable amount for taxes) that is required to satisfy the emergency need.  

                    7.4.          Death Benefits.  Notwithstanding Sections 7.1 and 7.2, upon the death of a Participant, the Company shall distribute to the Participant’s Beneficiary the Participant’s Account as soon as practicable following the date of the Participant’s death.

                    7.5.          Form of Payment.  

                                   (a)          Fee Deferrals and Share Distributions.  Fee Deferrals, Share Distributions and earnings credited thereon shall be paid in a cash lump sum.  

- 8 -

                                    (b)          Share Grant Deferrals.  Share Grant Deferrals shall be payable in Shares in accordance with the terms of the Directors’ Stock Compensation Plan.

ARTICLE VIII
 NO FUNDING

                    The obligations of the Company to distribute benefits under this Plan shall be interpreted solely as an unfunded, contractual obligation to distribute only those amounts credited to the Participant’s Account pursuant to Article V in the manner and under the conditions prescribed in Articles VI and VII.  Any assets set aside, including any assets transferred to a grantor trust or purchased by the Company with respect to amounts payable under the Plan, shall be subject to the claims of the Company’s general creditors, and no person other than the Company shall, by virtue of the provisions of the Plan, have any interest in such assets.  All amounts deferred pursuant to this Plan may, in the Committee’s discretion, be transferred to an irrevocable grantor trust as soon as practicable after such amounts are allocated to a
Participant’s Account pursuant to Article IV.

ARTICLE IX
 ADMINISTRATION

                    9.1.          Administration.  The Plan shall be administered by the Committee.  The Committee shall have authority to act to the full extent of its absolute discretion to:

                                    (a)          interpret the Plan;

                                    (b)          resolve and determine all disputes, questions or claims arising under the Plan, including the power to determine the rights of Participants and Beneficiaries, and their respective benefits, and to remedy any ambiguities, inconsistencies or omissions in the Plan;

                                    (c)          create and revise rules and procedures for the administration of the Plan and prescribe such forms as may be required for Participants to make elections under, and otherwise participate in, the Plan; and 

                                    (d)          take any other actions and make any other determinations as it may deem necessary and proper for the administration of the Plan.

Any expenses incurred in the administration of the Plan shall be paid by the Company.

                    9.2.          Administrative Review.  Except as the Committee may otherwise determine, all decisions and determinations by the Committee shall be final and binding upon all Participants and Beneficiaries.

- 9 -

                    9.3.          General.  No member of the Committee shall participate in any matter involving any questions or decisions relating solely to his or her own participation or benefits under the Plan.  The Committee shall be entitled to rely conclusively upon, and shall be fully protected in any action or omission taken by it in good faith reliance upon the advice or opinion of any persons, firms or agents retained by it, including but not limited to accountants, actuaries, counsel and other specialists.  Nothing in this Plan shall preclude the Company from indemnifying the members of the Committee for all actions under this Plan, or from purchasing liability insurance to protect such persons with respect to the Plan.

ARTICLE X
 AMENDMENT, DISCONTINUANCE AND TERMINATION

                    Except as required by the rules of the principal securities exchange on which the Common Stock is traded, the Board or the Committee shall have the right to amend, modify, discontinue or terminate the Plan in any manner; provided, however, that no amendment, modification, discontinuance or termination shall adversely affect the rights of Participants to amounts credited to the Accounts maintained on their behalf before such amendment, modification, discontinuance or termination.  In the case of termination of the Plan, any amounts credited to the Account of a Participant may, in the sole discretion of the Committee, be distributed in full to such Participant as soon as reasonably practicable following such termination.

ARTICLE XI
 MISCELLANEOUS

                    11.1.          No Rights to Board Membership.  Nothing in the Plan shall confer on any Director any right to continue as a member of the Board of the Company or its subsidiaries or interfere in any way with the right of the Company, its subsidiaries and each of their equity holders to remove or not re-elect an individual from or to the Board.

                    11.2.          Rights of Participants to Benefits.  All rights of a Participant under the Plan to amounts credited to the Participant’s Account are mere unsecured contractual rights of the Participant (or his or her Beneficiary) against the Company.

                    11.3.          No Assignment.  No amounts credited to Accounts nor any rights or benefits under the Plan shall be subject in any way to voluntary or involuntary alienation, sale, transfer, assignment, pledge, attachment, garnishment, execution, or encumbrance, and any attempt to accomplish the same shall be void.

                    11.4.          Withholding.  The Company shall have the right to deduct from any distribution made hereunder any taxes required by law to be withheld from a Participant with respect to such payment, and, shall have the right, in accordance with this Section and Section 10(c) of the Directors’ Stock Compensation Plan, to require that a portion of a Participant’s Account distribution (in cash, Common Stock or other property) be payable as may be necessary in the opinion of the Company to satisfy its withholding obligations for the payment of such taxes.

- 10 -

                    11.5.          Account Statements.  Periodically (as determined by the Committee), each Participant shall receive a statement indicating the amounts (and earnings thereupon, if applicable) credited to and payable from the Participant’s Account.

                    11.6.          Number.  The singular shall be read in the plural, and vice versa, whenever the context shall so require.

                    11.7.          Titles.  The titles to articles and sections in this Plan are placed herein for convenience of reference only, and the Plan is not to be construed by reference thereto.

                    11.8.          Governing Law.  The validity, construction and effect of the Plan and any rules or regulations relating to the Plan shall be determined in accordance with the laws of the state of Delaware without regard to its conflict of laws principles.

                    11.9.          Other Plans.  Except as specifically provided herein, nothing in this Plan shall be construed to affect the rights of a Participant, a Participant’s Beneficiaries, or a Participant’s estate to receive any retirement or death benefit under any tax-qualified or nonqualified pension plan, deferred compensation agreement, insurance agreement or other retirement plan of the Company.

As in effect on April 15, 2004.

- 11 -

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