Document:

EXHIBIT 10.2

                 AMERICAN EXPRESS SUPPLEMENTAL RETIREMENT PLAN

                 (As amended and restated as of July 1, 2007)

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                               TABLE OF CONTENTS

ARTICLE 1
HISTORY AND EFFECTIVE DATES...........................................1

   SECTION 1.1       HISTORY..........................................1
   SECTION 1.2       EFFECTIVE DATE...................................2
   SECTION 1.3       TRANSITION RULES.................................2

ARTICLE 2
DEFINITIONS...........................................................2

   SECTION 2.1       DEFINITIONS......................................2
   SECTION 2.2       QUALIFIED PLAN DEFINITIONS.......................6
   SECTION 2.3       GENDER AND NUMBER................................6

ARTICLE 3
ADMINISTRATION........................................................6

   SECTION 3.1       ADMINISTRATOR....................................6
   SECTION 3.2       AUTHORITY........................................6

ARTICLE 4
SUPPLEMENTAL BENEFITS.................................................6

   SECTION 4.1       ELIGIBILITY......................................6
   SECTION 4.2       PARTICIPATION....................................6
   SECTION 4.3       BENEFITS UNDER THE RP............................7
   SECTION 4.4       BENEFITS IN EXCESS OF LIMITS UNDER THE RSP.......8
   SECTION 4.5       CREDITING OF ACCOUNT............................10
   SECTION 4.6       SUPPLEMENTAL BENEFITS PAYMENT ELECTION..........11
   SECTION 4.7       SUPPLEMENTAL ACCOUNT INVESTMENT & EARNINGS......13
   SECTION 4.8       SPECIAL RESTRICTIONS............................14

ARTICLE 5
ELECTIVE DEFERRALS...................................................15

   SECTION 5.1       ELIGIBILITY.....................................15
   SECTION 5.2       PARTICIPATION...................................16
   SECTION 5.3       DEFERRABLE COMPENSATION.........................16
   SECTION 5.4       DEFERRAL BENEFITS ELECTION......................17
   SECTION 5.5       CREDITING OF DEFERRAL ACCOUNTS..................17
   SECTION 5.6       ACCOUNT EARNINGS................................17

ARTICLE 6
PAYMENT OF BENEFITS..................................................18

   SECTION 6.1       SUPPLEMENTAL ACCOUNT............................18
   SECTION 6.2       DEFERRAL ACCOUNT................................18
   SECTION 6.3       DESIGNATION OF BENEFICIARIES....................19

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   SECTION 6.4       DEATH...........................................20
   SECTION 6.5       DISABILITY......................................20
   SECTION 6.6       UNFORESEEN EMERGENCY............................21
   SECTION 6.7       COMPANY OFFSET..................................21
   SECTION 6.8       WITHHOLDING.....................................21

ARTICLE 7
CHANGE IN CONTROL....................................................21

   SECTION 7.1       CHANGE IN CONTROL...............................21
   SECTION 7.2       EFFECT OF CHANGE IN CONTROL.....................23

ARTICLE 8
CLAIMS PROCEDURES....................................................26

   SECTION 8.1       CLAIM...........................................26
   SECTION 8.2       CLAIM DECISION..................................27
   SECTION 8.3       REQUEST FOR REVIEW..............................28
   SECTION 8.4       REVIEW OF DECISION..............................28
   SECTION 8.5       ARBITRATION.....................................29
   SECTION 8.6       BURDEN OF PROOF.................................30
   SECTION 8.7       ADMINISTRATOR'S SOLE AUTHORITY..................30

ARTICLE 9
AMENDMENT & TERMINATION..............................................30

   SECTION 9.1       PLAN AMENDMENT..................................30
   SECTION 9.2       EFFECT OF PLAN TERMINATION......................30

ARTICLE 10
GENERAL PROVISIONS...................................................31

   SECTION 10.1      UNFUNDED STATUS.................................31
   SECTION 10.2      NON-TRANSFERABLE................................31
   SECTION 10.3      NO RIGHT TO CONTINUED EMPLOYMENT................31
   SECTION 10.4      PLAN BENEFITS NOT COMPENSATION UNDER EMPLOYEE
                     BENEFIT PLANS...................................31
   SECTION 10.5      COMPLIANCE WITH SECTION 409A....................31
   SECTION 10.6      NO GUARANTEE OF TAX CONSEQUENCES................31
   SECTION 10.7      LIMITATIONS ON LIABILITY........................32
   SECTION 10.8      SEVERABILITY....................................32
   SECTION 10.9      CAPTIONS........................................32
   SECTION 10.10     GOVERNING LAW...................................32

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                 AMERICAN EXPRESS SUPPLEMENTAL RETIREMENT PLAN

                 (AS AMENDED AND RESTATED AS OF JULY 1, 2007)

                                   ARTICLE 1
                          HISTORY AND EFFECTIVE DATES

SECTION 1.1       HISTORY.

     (a) On November 26, 1973, the Board of Directors (the "Board") of
American Express Company ("Amex") authorized and approved the adoption of the
American Express Supplementary Pension Plan (the "Plan") to supplement
retirement benefits provided under the American Express Retirement Plan and
other retirement and savings plans sponsored by Amex for a select group of
management or highly compensated individuals.

     (b) On July 1, 1994, the Board authorized and directed the amendment and
restatement of the Plan pursuant to the provisions of Section 9 thereof. The
Plan was amended and restated generally effective March 1, 1995, and renamed
the American Express Company Supplemental Retirement Plan. The Plan was
subsequently amended through December 31, 2004.

     (c) On July 25, 2005, the Board amended and restated the Plan
(immediately prior to such amendment and restatement, the "Prior Plan"),
effective January 1, 2005. Except as otherwise expressly provided herein,
Participants who were in "pay status" as of January 1, 2005 continue to have
the payment of their benefits governed solely by the terms of the Prior Plan;
provided, however, that effective with payments made in calendar year 2006 and
thereafter, payments other than monthly annuity payments which would have been
made on April 1 of any year under the Prior Plan are made on July 1 of such
year. Participants who were not in "pay status" as of January 1, 2005 are
governed from and after such date by the terms of the Plan, as amended and
restated, and as further amended and restated from time to time. For purposes
of this section, a Participant was in "pay status" as of January 1, 2005 if he
or she was entitled to benefits under the Plan as of January 1, 2005, with
payments scheduled to begin on or before April 1, 2005.

     (d) Effective as of October 1, 2005, Ameriprise Financial, Inc. ("AFI")
ceased to be a participating employer in Amex's tax-qualified retirement plans
and the components of such plans covering AFI participants were transferred to
new plans established by AFI in a transaction that complied with Section
414(l) of the Internal Revenue Code of 1986, as amended (the "Code"). In
connection with that transaction, the component of the Plan covering AFI
participants was similarly transferred, and active and retired AFI
participants and AFI beneficiaries ceased participation in and no longer have
any benefits under the Plan.

     (e) Generally effective July 1, 2007, benefit accruals under the American
Express Retirement Plan, as amended (the "RP") were ceased. In addition,
generally effective as of July 1, 2007, Amex adopted certain changes to the
American Express Incentive Savings Plan, as amended, and renamed such plan the
American Express Retirement Savings Plan (the "RSP").

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     (f) On January 22, 2007, the Board amended and restated the Plan,
generally effective July 1, 2007, to reflect the changes made to the RP and
the RSP, to allow for the elective deferral of compensation under the Plan,
and to rename the Plan the American Express Supplemental Retirement Plan.

     (g) The Plan has remained in effect since its adoption and has been
construed and operated as a "top-hat plan" under Sections 201(2), 301(a)(3),
and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as
amended ("ERISA"), and Section 2520.104-23 of the United States Department of
Labor Regulations.

SECTION 1.2 EFFECTIVE DATE. Except as expressly provided otherwise herein, the
Plan as amended and restated hereby is generally effective July 1, 2007.

SECTION 1.3 TRANSITION RULES. Each Participant's accrued benefit under the
Prior Plan as of December 31, 2004 ("Grandfathered Benefits") was determined
by the Administrator in accordance with Section 409A of the Code and Notice
2005-1. Except as set forth in Section 1.1(c), Grandfathered Benefits are
governed by and administered in accordance with the Prior Plan; provided,
however, that any election with respect to Grandfathered Benefits may not
materially modify the rights, terms or conditions of the Prior Plan. All other
benefits are governed by and administered solely in accordance with the Plan,
as amended and restated from time to time.

                                   ARTICLE 2
                                  DEFINITIONS

SECTION 2.1       DEFINITIONS.  As used in the Plan, the following terms have
the meanings indicated below:

     (a) "ACCOUNT" means, with respect to a Participant, his or her Deferral
Account and Supplemental Account, collectively.

     (b) "ADMINISTRATOR" means the Employee Benefits Administration Committee,
including any individual(s) to whom the Employee Benefits Administration
Committee delegates authority under the Plan, or such other committee or
individual(s) authorized to act as the Administrator by the Compensation and
Benefits Committee.

     (c) "AFFILIATE" means any corporation or other trade or business under
common
control with Amex, as further defined in the Qualified Retirement Plans.

     (d) "ANNUAL INCENTIVE AWARD" means, for a Plan Year, a performance
incentive bonus award granted to an Employee under the Company's Annual
Incentive Award Plan, as amended from time to time, or any successor plan
thereto, with a performance period of the Plan Year, or a comparable award
issued as a Qualifying Award to a key employee under the Company's 1998
Incentive Compensation Plan, as amended from time to time, or any successor
plan thereto; provided that the Committee may, in its discretion, designate
additional or different items as Annual Incentive Awards for purposes of the
elective deferrals under Article 5.

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     (e) "BASE SALARY" means, with respect to a Participant, as of a specified
date, the annual rate of base salary payable to the Participant as of such
date before any reduction for any amounts deferred by the Participant pursuant
to Section 401(k) or Section 125 of the Code, or pursuant to a Deferral Plan
or any other non-qualified plan which permits the voluntary deferral of
compensation.

     (f) "BENEFICIARY" means the individual or entity designated by a
Participant in accordance with procedures established by the Administrator to
receive the Participant's Supplemental Account or Deferral Account in the
event of the Participant's death.

     (g) "BENEFITS" means, with respect to a Participant, his or her Deferral
Benefits and Supplemental Benefits, collectively.

     (h) "CODE" means the Internal Revenue Code of 1986, as amended.

     (i) "COMMITTEE" means the Compensation and Benefits Committee of the
Board of Amex, or such successor committee as may be designated by the Board.

     (j) "COMPANY" means Amex, any of its subsidiaries and any Affiliates
which have become participating employers in a Qualified Retirement Plan.

     (k) "DEFERRAL ACCOUNT" means, with respect to a Participant for a given
Plan Year, the book reserve account established by Amex for the Participant
for such Plan Year pursuant to Section 5.5.

     (l) "DEFERRAL BENEFITS" means, with respect to a Participant, the
benefits credited to his or her Deferral Accounts.

     (m) "DEFERRAL DISTRIBUTION" means a distribution to a Participant from
his or her Deferral Accounts.

     (n) "DEFERRAL ELECTION" means, with respect to a given Plan Year, an
election made by an eligible Employee with respect to his or her Deferral
Account for such Plan Year under Article 5.

     (o) "DEFERRAL PLAN" means:

                    (i) for Plan Years ending on or before December 31, 2007,
               the American Express Salary Deferral Plan, the American Express
               Pay-for-Performance Deferral Programs and any other similar
               non-qualified plans for the deferral of compensation available
               in such Plan Years; and

                    (ii) for Plan Years beginning on or after January 1, 2008,
               Article 5 of this Plan and such other non-qualified plans or
               arrangements for the deferral of compensation as determined by
               the Administrator, it its sole discretion.

     (p) "DISABILITY" has the meaning given such term by Section 409A.

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     (q) "EMPLOYEE" means an elected or appointed officer of the Company or
any other individual who the Administrator identifies as an employee of the
Company, and whose compensation is reported on a Form W-2, regardless of
whether the use of such form is subsequently determined to be erroneous.

     (r) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.

     (s) "MINIMUM SCHEDULE RATE" means, for a calendar year, the "Below ROE
Target Range" rate for such calendar year under the metric set forth in
Schedule A, as in effect for that calendar year.

     (t) "MOODY'S A RATE" means, for a calendar year, the average corporate
bond yield rate for such calendar year, as announced by Moody's Investor
Services for borrowers rated "A."

     (u) "PARTICIPANT" means an Employee who accrues benefits under the Plan;
provided, however, that the term "Participant" as used in Article 4 shall be
limited to the Employees eligible to participate in the Plan with respect to
Supplemental Benefits under Article 4, and the term "Participant" as used in
Article 5 shall be limited to the Employees eligible to participate in the
Plan with respect to Deferral Benefits under Article 5.

     (v) "PG AWARD" means a performance incentive bonus award granted to an
Employee with a performance period longer than one Plan Year. A PG Award for a
Plan Year shall be:

                    (i) in the case of a PG Award that qualifies as
               performance-based compensation for purposes of Section 409A, a
               PG Award with a performance period ending on the July 1st or
               later date of such Plan Year; or

                    (ii) in the case of a PG Award that does not qualify as
               performance-based compensation for purposes of Section 409A, a
               PG Award with a performance period beginning on the January 1st
               of such Plan Year;

provided that the Committee may, in its discretion, designate additional or
different items as PG Awards for purposes of the elective deferrals under
Article 5.

     (w) "PLAN YEAR" means,

                    (i) for Supplemental Benefits under Article 4, the
               calendar year with reference to which benefits are determined
               under the Plan; and

                    (ii) for Deferral Benefits under Article 5, the specified
               calendar year.

     (x) "QUALIFIED RETIREMENT PLAN" means the RP and/or the RSP, as the
context may imply.

     (y) "RETIREMENT" means a voluntary Separation from Service by a
Participant who is Retirement Eligible on the date of such Separation from
Service.

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     (z) "RETIREMENT ELIGIBLE" means, with respect to a Participant, he or she
is age 55 or older with ten or more actual or deemed years of service with the
Company.

     (aa) "RP-RELATED ACCOUNT" means, with respect to a Participant, the book
reserve account established by the Company for the Participant pursuant to
Section 4.3.

     (bb) "RSP-RELATED ACCOUNT" means, with respect to a Participant, the book
reserve account established by the Company for the Participant pursuant to
Section 4.4.

     (cc) "RSP MATCH PERCENTAGE" means, with respect to a Participant for a
Plan Year, the maximum Company Matching Contribution percentage that would be
utilized for purposes of the RSP for such Participant for the Plan Year if the
Participant had made the maximum Elective Contribution under the RSP for the
Plan Year.

     (dd) "SCHEDULE RATE" means, for a calendar year, the applicable rate for
such calendar year determined under the metric set forth in Schedule A, as in
effect for that calendar year.

     (ee) "SECTION 401(A)(17) LIMITATION" refers to the limitation on the
dollar amount of Compensation which may be taken into account under the
Qualified Retirement Plans under Section 401(a)(17) of the Code.

     (ff) "SECTION 409A" means Section 409A of the Code, together with
official interpretations, guidance, or regulations issued thereunder.

     (gg) "SECTION 415 LIMITATIONS" refer to the limitations on benefits for
defined benefit pension plans and defined contribution plans which are imposed
by Section 415 of the Code.

     (hh) "SEPARATION FROM SERVICE" has the meaning given such term by Section
409A.

     (ii) "SEVERANCE PLAN" means, collectively, (A) the American Express
Senior Executive Severance Plan, effective January 1, 1994, as amended and
restated through July 22, 2002, and as further amended from time to time, and
any successor plan thereto, and (B) the American Express Severance Pay Plan,
effective January 1, 1987, as amended and restated through January 1, 2005,
and as further amended from time to time, and any successor plan thereto.

     (jj) "SUPPLEMENTAL ACCOUNT" means, with respect to a Participant, his or
her RP-Related Account and RSP-Related Account, collectively.

     (kk) "SUPPLEMENTAL BENEFITS" means, with respect to a Participant, the
benefits under his or her Supplemental Account.

     (ll) "SUPPLEMENTAL DISTRIBUTION" means a distribution to a Participant
from his or her Supplemental Account.

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     (mm) "SUPPLEMENTAL ELECTION" means the election made by a Participant
with respect to his or her Supplemental Account under Section 4.6.

SECTION 2.2 QUALIFIED PLAN DEFINITIONS. Capitalized terms not otherwise
defined in the Plan shall have the same meaning set forth in the related
Qualified Retirement Plan, to the extent applicable, as the context may imply.

SECTION 2.3 GENDER AND NUMBER. All pronouns and any variations thereof shall
be deemed to refer to the masculine, feminine, or neuter, as the identity of
the person or persons may require. For all purposes of the Plan, where the
context admits, the singular shall include the plural, and the plural shall
include the singular.

                                  ARTICLE 3
                                ADMINISTRATION

SECTION 3.1       ADMINISTRATOR.  The Plan shall be administered by the
Administrator.

SECTION 3.2       AUTHORITY. Except as otherwise provided by the Committee (but
subject to the limitation on the Committee's authority under Section 8.7), the
Administrator shall have full power, authority and discretion to interpret,
construe and administer the Plan, and such interpretation and construction
thereof and actions taken thereunder shall be binding on all persons for the
purposes so stated by the Administrator. The Administrator may correct any
defect, supply any omission or reconcile any inconsistency in the Plan in the
manner and to the extent the Administrator deems necessary or desirable. In
the event of a mathematical or accounting error made, or other similar
mistake, the Administrator shall have power in its discretion to cause such
equitable adjustments to be made to correct for such errors as it considers
appropriate in the circumstances. Any decision of the Administrator in the
administration of the Plan shall be final and conclusive and binding upon all
Participants and Beneficiaries.

                                  ARTICLE 4
                             SUPPLEMENTAL BENEFITS

SECTION 4.1 ELIGIBILITY. Participation in this Plan with respect to
Supplemental Benefits shall be limited to Employees who meet the requirements
of Section 4.2, and shall automatically occur for such Employees, provided
that the Administrator may designate, on a case-by-case basis, Employees or
categories of Employees who shall not be eligible to participate in all or any
portion of this Plan, and provided further, that the determination of eligible
Employees shall be made consistent with the requirement that the Plan be a
"top-hat" plan for purposes of ERISA.

SECTION 4.2 PARTICIPATION. To become a Participant in the Plan with respect to
Supplemental Benefits, an Employee must:

     (a) be a participant under a Qualified Retirement Plan maintained by the
Company. Participation by an Employee in a Qualified Retirement Plan shall be
determined pursuant to and in accordance with the eligibility criteria
applicable under such Qualified Retirement Plan; and

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     (b) for the relevant Plan Year:

                    (i) be credited with Compensation earned from the Company
               in an amount in excess of the applicable Code Section
               401(a)(17) Limitation or accrue benefits under a Qualified
               Retirement Plan in excess of the Section 415 Limitation; or

                    (ii) be classified as a level "Band 50" personnel or
               greater, as such classification is defined by the Administrator
               from time-to-time, and have deferred Compensation under a
               Deferral Plan.

SECTION 4.3 BENEFITS UNDER THE RP. If a Participant is a participant under the
RP, other than a terminated participant, the Company shall establish an
RP-Related Account for such Participant, which shall be determined as follows:

     (a) "COMPENSATION" FOR RP CREDITS. For purposes of RP credits under this
Section 4.3, "Compensation" has the meaning given such term in the RP,
provided that the Committee may, in its discretion, designate additional or
different items as Compensation for purposes of this Section 4.3. Effective
with the 2003 performance year (which awards were granted in 2004) and
thereafter, "Compensation" for purposes of RP credits under this Section 4.3
shall include the value of restricted stock awards granted to certain
Participants in lieu of cash supplemental Annual Incentive Awards.

     (b) CONTRIBUTION CREDITS. There shall be credited to a Participant's
RP-Related Account for each Plan Year, in accordance with Section 4.5, an
amount equal to the excess, if any, of: (x) the Contribution Credits that
would have been credited to a Participant's Defined Benefit Account Balance
under the RP for the Plan Year if the Plan's definition of Compensation was
used, the Section 401(a)(17) Limitation was ignored, and the Participant had
not elected or been required to defer the receipt of any Compensation through
non-qualified deferrals pursuant to a Deferral Plan, over (y) the actual
Contribution Credits credited to the Participant's Defined Benefit Account
Balance under the RP for the Plan Year. No credits shall be made to a
Participant's RP-Related Account pursuant to this Section 4.3(b) for any pay
period ending on or after July 1, 2007.

     (c) BENEFITS FORMULA. The formula of the benefits for a Plan Year under
this Section 4.3 shall be determined by the Administrator and applied in a
uniform manner for all similarly situated Participants.

     (d) ADDITIONAL YEARS OF SERVICE.

                    (i) Certain Participants, as determined by the Company in
               its sole discretion, may be deemed to have rendered five
               additional Years of Service under the Plan. For each such
               Participant, subject to such terms and conditions as the
               Company may impose upon such benefits by special agreement with
               such Participant (in the event of a conflict with this Section
               4.3(d), such special agreement shall control), an additional
               amount shall be credited to the Participant's RP-Related
               Account equal to the excess, if any of: (x) the total

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               cumulative Contribution Credits that would have been credited
               to the Participant's RP-Related Account under this Section 4.3
               had the Participant rendered such additional Years of Service
               under the RP, over (y) the actual total cumulative Contribution
               Credits credited to the Participant's RP-Related Account under
               this Section 4.3 as of the date the Participant is eligible for
               such benefits under the Plan. Subject to the terms of the
               special agreement with each such Participant, such amounts
               shall be calculated and credited to the RP-Related Account
               established for the Participant in accordance with Section 4.5
               under procedures to be determined from time to time by the
               Administrator and consistently applied to similarly situated
               Participants. Unless otherwise determined by the Administrator
               or agreed in a special agreement with the Participant, amounts
               credited under this Section 4.3(d) shall be subject to
               five-year vesting, and such amounts shall be forfeited by the
               Participant if the Participant's service with the Company
               terminates for any reason other than death or disability (as
               defined in the RP) before five years of actual service have
               been rendered to the Company by such Participant.

                    (ii) For each Participant with a special agreement
               described in Section 4.3(d)(i) who has not accrued five Years
               of Service as of July 1, 2007, the Participant shall be
               entitled to received the credit described in Section 4.3(d)(i)
               for the 2007 Plan Year as if the RP had remained in effect
               through December 31, 2007, and the Participant were an active
               participant in the RP through such date. Regardless of any
               special agreement described in Section 4.3(d)(i), a Participant
               shall not be entitled to received any credit under this Section
               4.3 for the 2008 Plan Year or later.

SECTION 4.4 BENEFITS IN EXCESS OF LIMITS UNDER THE RSP. If a Participant is a
participant in the RSP, other than a terminated participant, the Company shall
establish an RSP-Related Account for such Participant, which shall be
determined as follows:

     (a) "COMPENSATION" FOR RSP CREDITS.

                    (i) DEFINITION. For purposes of RSP credits under this
               Section 4.4, "Compensation" has the meaning given the term
               "Total Pay" in the RSP, provided that the Committee may, in its
               discretion, designate additional or different items as
               Compensation for purposes of this Section 4.4. Effective July
               1, 2007, "Compensation" for purposes of RSP credits under this
               Section 4.4 shall include the value of restricted stock awards
               granted to certain Participants in lieu of cash Annual
               Incentive Awards, subject to the limitation set forth in
               Section 4.4(a)(ii).

                    (ii) LIMITATION. Effective January 1, 2008, "Compensation"
               of a Participant for purposes of RSP credits under this Section
               4.4 shall not include any incentive pay (including the value of
               any restricted stock awards granted to certain Participants in
               lieu of cash Annual Incentive Awards) in excess of one times
               his or her Base Salary. For purposes of this provision, a
               Participant's Base Salary shall be determined as of January 1
               of each Plan Year. In addition, incentive pay subject to this
               limitation shall only be those amounts actually paid in the
               Plan Year, regardless of when such amounts were earned.

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     (b) CONTRIBUTION CREDITS. The following amounts shall be credited to the
Participant's RSP-Related Account for each Plan Year, in accordance with
Section 4.5:

                    (i) COMPANY STOCK CONTRIBUTION. An amount equal to: (a)
               one percent of the sum of: (i) the Participant's Compensation,
               calculated without the Section 401(a)(17) Limitation or Section
               415 Limitations, plus (ii) that portion of a Participant's
               Compensation deferred during such Plan Year pursuant to a
               Deferral Plan, minus (b) the amount actually allocated as a
               Company Stock Contribution to the account of the Participant
               under the RSP. For purposes of this Section 4.4(b)(i), the
               Section 401(a)(17) Limitation shall be deemed to apply pro
               ratably to each regularly scheduled pay period for each Plan
               Year. No credits shall be made to a Participant's RSP-Related
               Account pursuant to this Section 4.4(b)(i) for any pay period
               ending on or after July 1, 2007.

                    (ii) COMPANY PROFIT-SHARING CONTRIBUTION. An amount equal
               to: (a) the Company Profit-Sharing Contribution percentage
               utilized for purposes of the RSP for that Plan Year for such
               Participant times the sum of: (i) the Participant's
               Compensation, calculated without the Section 401(a)(17)
               Limitation or Section 415 Limitations, plus (ii) that portion
               of a Participant's Compensation deferred during such Plan Year
               pursuant to a Deferral Plan, minus (b) the amount actually
               allocated as a Company Profit-Sharing Contribution to the
               Account of the Participant under the RSP. Unless otherwise
               expressly provided in the Plan, benefits credited under this
               Section 4.4(b)(ii) at the time of a Supplemental Distribution
               shall be restricted to a Participant's vested portion, as
               determined under the applicable provisions of the RSP. Any
               non-vested portion of such deferred compensation to be paid
               shall be forfeited.

                    (iii) COMPANY MATCHING CONTRIBUTION.

                      (A) Before March 15, 2005, an amount equal to that portion
                 of the Company Matching Contribution that would have been
                 contributed and allocated to the account of a Participant by
                 the Company as a Matching Contribution on behalf of a
                 Participant, (a) to the extent such contribution is limited by
                 the Section 401(a)(17) Limitation or Section 415 Limitations,
                 minus such amount allocated as a Matching Contribution to the
                 account of the Participant under the RSP, and (b) with respect
                 to that portion of a Participant's Compensation deferred
                 pursuant to a Deferral Plan, and assuming (i) such portion had
                 not been deferred and (ii) the Participant had elected to make
                 Elective Contributions under the RSP equal to three percent (or
                 such lesser amount if actually elected by the Participant under
                 the RSP) of such Participant's compensation deferred under such
                 deferred compensation plan.

                      (B) Effective March 15, 2005, a Company matching
                 contribution, whether or not the Participant actually elects to
                 defer Compensation under the RSP, equal to the Participant's
                 RSP Match Percentage for the Plan Year multiplied by the sum
                 of: (i) that portion of the Participant's Compensation which
                 was deferred during the Plan Year pursuant to a Deferral Plan,
                 and (ii) that portion of the Participant's Compensation (not
                 including the amounts deferred as described in clause (i)
                 above) in excess of the Section 401(a)(17) Limitation, shall be
                 contributed and allocated to the Account of a Participant by
                 the Company as a matching contribution on behalf of such
                 Participant; provided, however, for purposes of this Company
                 matching contribution, Compensation shall not be subject to the
                 Section 401(a)(17) Limitation. Unless otherwise expressly
                 provided in the Plan, benefits credited under this Section
                 4.4(b)(iii) at the time of a Supplemental Distribution shall be
                 restricted to a Participant's vested portion, as determined
                 under the applicable provisions of the RSP. Any non-vested
                 portion of such deferred compensation to be paid shall be
                 forfeited.

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                    (iv) COMPANY CONVERSION CONTRIBUTION. An amount equal to:
               (a) the Company Conversion Contribution percentage utilized for
               purposes of the RSP for that Plan Year for such Participant
               times the sum of: (i) the Participant's Compensation,
               calculated without the Section 401(a)(17) Limitation or Section
               415 Limitations, plus (ii) that portion of a Participant's
               Compensation deferred during such Plan Year pursuant to a
               Deferral Plan, minus (b) the amount actually allocated as a
               Company Conversion Contribution to the Account of the
               Participant under the RSP. Unless otherwise expressly provided
               in the Plan, benefits credited under this Section 4.4(b)(iv) at
               the time of a Supplemental Distribution shall be restricted to
               a Participant's vested portion, as determined under the
               applicable provisions of the RSP. Any non-vested portion of
               such deferred compensation to be paid shall be forfeited.

     (c) COMPANY CONTRIBUTION FOR ADDITIONAL YEARS OF SERVICE. Certain
Participants, as determined by the Company in its sole discretion, may be
deemed to have rendered five additional Years of Service under the RSP. For
each such Participant, subject to such terms and conditions as the Company may
impose upon such benefits by special agreement with such Participant (in the
event of a conflict with this Section 4.4(c), such special agreement shall
control), an additional amount shall be credited to the Participant's
RSP-Related Account equal to 40 percent of the sum of the Participant's Base
Salary and annualized bonus compensation. Subject to the terms of the special
agreement with each such Participant, such amounts shall be calculated under
procedures to be determined from time to time by the Administrator and
consistently applied to similarly situated Participants. Unless otherwise
determined by the Administrator or agreed in a special agreement with the
Participant, amounts credited under this Section 4.4(c) shall be subject to
five-year vesting, and such amounts shall be forfeited by the Participant if
the Participant's service with the Company terminates for any reason other
than death or disability (as defined in the RSP) before five years of actual
service have been rendered to the Company by such Participant. Amounts
described in this Section 4.4(c) shall be credited to the RSP-Related Account
established for the Participant in accordance with Section 4.5.

SECTION 4.5       CREDITING OF ACCOUNT.

     (a) TIME AND MANNER. Amounts described in this Article 4 shall be
credited to the Supplemental Account established for a Participant at such
times and in such manner as may be determined by the Administrator. In making
such credits, the Administrator shall generally attempt to, but shall not be
required to, credit accounts at a time and in a manner as similar as possible
to the time and manner for the crediting of similar amounts under the
Qualified Retirement Plans; provided that, unless the Administrator determines
otherwise, amounts credited to a Supplemental Account with respect to the
application of the Section 415 Limitations to the RP shall be credited upon
the commencement of the benefit payment under the RP; and provided further
that, unless otherwise determined by the Administrator or agreed in a special
agreement with a Participant, amounts credited to a Supplemental Account
pursuant to Section 4.4(c) shall be determined as of and credited on the
one-year anniversary of the later of the date of the special agreement or the
first day of the Participant's employment by the Company. The Administrator
shall apply such procedures consistently to similarly situated Participants.

                                     -10-
<PAGE>

     (b) COMPANY STOCK CONTRIBUTIONS. Amounts described in Section 4.4(b)(i)
shall be initially credited to the RSP-Related Account established for a
Participant, to a subaccount relating to the RSP Stock Fund (the "Stock
Fund"). For purposes of the Plan, the amount of such credits shall be
determined by the Administrator in a manner determined by the Administrator to
be reasonably consistent with similar determinations made under the Stock
Fund.

     (c) OTHER CONTRIBUTIONS. Amounts described in Section 4.4(b)(ii)
(profit-sharing contributions), Section 4.4(b)(iii) (matching contributions),
Section 4.4(b)(iv) (conversion credits) and Section 4.4(c) (special agreement
credits) shall be credited to the RSP-Related Account established for a
Participant, which shall contain various subaccounts selected by the
Administrator in its sole and exclusive discretion, representing the various
investment funds available to a Participant under the RSP as provided for in
the Plan; provided that:

                    (i) if a Participant has directed RSP amounts to the Stock
               Fund and the credits to the RSP-Related Account of a
               Participant pursuant to this Section 4.5(c) to the subaccount
               relating to the Stock Fund would result in the aggregate
               Company Stock holdings of such Participant under the Plan
               exceeding ten percent of the total value of his or her
               RSP-Related Account (determined at the time of the transfer),
               then such Participant shall be deemed to have selected, with
               respect to any such excess, the default subaccount designated
               by the Investment Committee for purposes of the RSP for
               allocations exceeding the applicable ten-percent threshold
               under RSP, or if none, such other default subaccount designated
               by the Investment Committee for purposes of the RSP; and

                    (ii) unless otherwise determined by the Administrator, no
               subaccount shall be established under the Plan to coincide with
               any self-directed brokerage account which may be available
               under the RSP.

     (d) ADDITIONAL ACCOUNTS. The Administrator may, in its sole and exclusive
discretion, establish additional book reserve accounts from time to time. The
procedures to reflect and credit increases, decreases, interest, dividends,
and other income, gains and losses shall be determined by the Administrator in
its sole and exclusive discretion.

SECTION 4.6 SUPPLEMENTAL BENEFITS PAYMENT ELECTION. Any Supplemental Benefits
payable under the Plan shall be paid in cash from the general assets of the
Company in the form elected by the Participant subject to the following:

     (a) In accordance with rules and procedures adopted by the Administrator
in compliance with Section 409A, existing Participants, including Participants
(other than those in pay status on December 31, 2004) under the Prior Plan,
may make Supplemental Elections as follows:

                    (i) Participants who have not previously made an initial
               Supplemental Election under Section 4.6, whether under the Plan
               or under the Prior Plan, may make such an initial Supplemental
               Election on or before the date set by the Administrator, which
               shall not be later than December 31, 2005.

                                     -11-
<PAGE>

                    (ii) Participants who have previously made an initial
               Supplemental Election under Section 4.6(b), whether under the
               Plan or under the Prior Plan, but who have not previously
               modified such election under Section 4.6(d), whether under the
               Plan or under the Prior Plan, may change such Supplemental
               Election on or before the date set by the Administrator, which
               shall not be later than December 31, 2005, to elect any payment
               form permissible under Section 4.6(b) and Section 409A,
               regardless of whether such Supplemental Election lengthens or
               shortens the period over which payments from the Plan shall be
               made. For the avoidance of doubt, any such distribution which
               accelerates payments from the Plan shall not cause any
               reduction in the amounts otherwise payable hereunder.
               Notwithstanding Section 4.6(d), if made on or before December
               31, 2005 in accordance with this Section 4.6(a)(ii), such
               subsequent Supplemental Election shall be made in accordance
               with Section 409A, but, to the extent permitted under Section
               409A transition guidance, need not comply with requirement
               regarding a minimum additional deferral period of five years.
               Any such subsequent Supplemental Election made under this
               Section 4.6(a)(ii) shall constitute a modification for purposes
               of the one-time limitation contained in Section 4.6(d), and no
               additional modification will thereafter be permitted under
               Section 4.6(d).

                    (iii) Employees who first become Participants after
               December 31, 2005 may make an initial Supplemental Election in
               accordance with rules and procedures adopted by the
               Administrator in compliance with Section 409A.

                    (iv) Participants who have previously made both a
               Supplemental Election and a modification to such Supplemental
               Election shall be subject to the rules of Section 4.6(d)
               prohibiting any further changes to their Supplemental
               Elections. However, any Participant who was not in pay status
               (as defined in Section 1.1(c)) on January 1, 2005 and who
               previously made a modification to an initial Supplemental
               Election which accelerated the time period for payments from
               the Plan shall not have any reduction in the amounts otherwise
               payable hereunder (notwithstanding Section V(D)(1)(b)(ii) of
               the Prior Plan).

     (b) A Participant may elect to receive his or her Supplemental Benefits
in a single lump-sum payment or in annual installments payable over a period
of five, ten or 15 consecutive calendar years. Except as provided in Section
4.6(d), a Participant may not modify his or her initial Supplemental Election
described in the preceding sentence. Such subsequent Supplemental Election
shall apply to the payment of all benefits under the Plan and the Prior Plan
(except for benefits that were in pay status on December 31, 2004).

     (c) If a Participant fails to make a valid, timely Supplemental Election
in accordance with Section 4.6(a) and the rules and procedures adopted by the
Administrator, such Participant shall be deemed to have made an initial
Supplemental Election to receive his or her Supplemental Benefits in the form
of a single lump sum.

     (d) A Participant who has not previously modified an initial Supplemental
Election may make a one-time modification to his or her initial Supplemental
Election to elect a payment form that lengthens the period over which payments
of Supplemental Benefits from the Plan shall be made. To be effective, such a
modification shall be made by filing a written notice of modification in such
form and manner as the Administrator may prescribe; provided, however, that
the modification must comply with Section 409A, including requirements
regarding: (i) a minimum additional deferral period of five years, and (ii)
the subsequent Supplemental Election not being effective until 12 months after
it is made. A Participant may not change the payment method of his or her
Supplemental Benefits after his or her Separation from Service.

                                     -12-
<PAGE>

SECTION 4.7       SUPPLEMENTAL ACCOUNT INVESTMENT & EARNINGS.

     (a) RP-RELATED ACCOUNT. For each Participant, the RP-Related Account
established pursuant to Section 4.3 shall be increased by the Imputed Earnings
Credit (as such term is defined in the RP), not less frequently than annually,
under procedures and at times determined by the Administrator and consistently
applied for similarly situated Participants. Such earnings shall be credited
at the same interest rate and computed in a similar manner (to the extent
administratively feasible) as Imputed Earnings Credits are computed under the
RP for each Plan Year.

     (b) RSP-RELATED ACCOUNT.

                    (i) For each Participant, credits to his or her
               RSP-Related Account shall be made to such subaccounts
               thereunder as directed by such Participant. If more than one
               subaccount is selected, a Participant must designate, on a form
               or other medium acceptable to the Administrator, in one-percent
               increments, the amounts to be credited to each subaccount. A
               Participant shall be allowed to amend such designation
               consistent with the frequency of investment changes offered the
               Participant under rules governing the RSP for a given Plan
               Year.

                    (ii) Subject to Section 4.7(b)(iv), and to such rules as
               may be adopted by the Administrator, the performance of the
               book reserve subaccount established for each Participant
               pursuant to Section 4.5(b) shall reflect the performance of the
               Stock Fund. Such subaccount shall reflect such increases or
               decreases in value from time to time, whether from dividends,
               gains, losses or otherwise, as may be experienced by the Stock
               Fund. Subject to Section 4.8, and to such rules as may be
               adopted by the Administrator, a Participant may elect to
               transfer credits to the book reserve subaccount established
               pursuant to Section 4.5(b) to or from such subaccount to or
               from one or more subaccounts established pursuant to Section
               4.5(c), in a manner similar to the rules for such transfers
               under the RSP; provided, however, no Participant may transfer
               amounts to the book reserve subaccount established for each
               Participant pursuant to Section 4.5(b) to the extent that such
               transfer would result in the aggregate Company Stock holdings
               of such Participant under the Plan exceeding ten percent of the
               total value of his or her RSP-Related Account (determined at
               the time of the transfer).

                    (iii) Subject to Section 4.7(b)(iv), and to such rules as
               may be adopted by the Administrator, the performance of the
               book reserve subaccounts established for each Participant shall
               reflect the performance of the investment fund under the RSP
               that such subaccount represents. Each such subaccount shall
               reflect such increases or decreases in value from time to time,
               whether from dividends, gains, losses or otherwise, as that
               experienced by the related investment fund under the RSP.
               Subject to Section 4.7(b)(ii) and Section 4.8, credits to such
               subaccounts may be transferred to any other subaccount under
               the Plan in a manner similar to the rules for such transfers
               under the RSP, on such terms and at such times as permitted
               with respect to the related investment funds under the RSP, and
               to such rules as may be adopted by the Administrator. If a

                                     -13-
<PAGE>

               Participant fails to affirmatively designate one or more
               subaccounts pursuant to this Section 4.7(b), subject to rules
               established by the Administrator, such Participant shall be
               deemed to have selected either a default account selected by
               the Administrator or, to the extent feasible, the subaccount(s)
               that relate to the Participant's investment direction under the
               RSP; provided, however, to the extent an Insider has directed
               RSP amounts to the Stock Fund, such Insider shall be deemed to
               have selected the subaccount relating to the Stable Value Fund.
               Notwithstanding the foregoing, the Administrator may, in its
               sole discretion, provide that one or more investment funds
               available under the RSP, including any self-directed brokerage
               account which may be available under the RSP, shall not be
               available for designation under the Plan.

                    (iv) Subject to Section 4.5(c), the subaccounts shall be
               valued subject to such reasonable rules and procedures as the
               Administrator may adopt and apply to all Participants similarly
               situated with an effort to value such subaccounts as if amounts
               designated were invested in at similar times and in manners,
               subject to administrative convenience, as amounts are invested,
               and subject to the same market fluctuation factors used in
               valuing such investments in the RSP.

SECTION 4.8       SPECIAL RESTRICTIONS.

     (a) The provisions of this Section 4.8 shall apply to Participants who
are or may be required to file reports under Section 16(a) of the Exchange Act
with respect to equity securities of Amex ("Insiders"). Such provisions shall
apply during all periods that such Participants are Insiders, including any
period following cessation of Insider status during which such Participants
are required to report transactions pursuant to Rule 16a-2(b) (or its
successor) under the Exchange Act. This Section 4.8 shall be automatically
applicable to any Participant who, on and after the date hereof, becomes an
Insider. For purposes of the foregoing, the effective date of this Section 4.8
shall be the date the Participant becomes an Insider. At such time as any
Participant ceases to be an Insider (and any period contemplated by Rule
16a-2(b) has expired), this Section 4.8 shall cease to be applicable to such
Participant.

     (b) Notwithstanding anything in the Plan to the contrary, (i) except as
set forth below, credits to the RSP-Related Account of an Insider pursuant to
Section 4.5 may not be made to a subaccount that reflects the performance of
the Stock Fund, (ii) credits made pursuant to Section 4.5 to the account of an
Insider at any time may not be transferred to a subaccount that reflects the
performance of the Stock Fund and (iii) credits made to an Insider's
RSP-Related Account pursuant to Section 4.5(b) at any time, and credits to a
subaccount of an Insider that reflects the performance of the Stock Fund
(which credits could only have been made when such individual was not an
Insider) may not be transferred, withdrawn, paid out or otherwise changed,
other than (a) pursuant to Section 4.6 or Section 6.4 (but only at such time
as such person is no longer an Insider) or (b) pursuant to the forfeiture
provisions contained in the last sentence of Section 4.4(b)(ii).

     (c) It is intended that the crediting of amounts to the accounts of
Insiders that represents the performance of the Stock Fund is intended to
qualify for exemption from Section 16 under Rule 16b-3(d) under the Exchange
Act. The Administrator shall, with respect to Insiders, administer and
interpret all Plan provisions in a manner consistent with such exclusion.

                                     -14-
<PAGE>

                                  ARTICLE 5
                              ELECTIVE DEFERRALS

SECTION 5.1       ELIGIBILITY.

     (a) IN GENERAL. Participation in the Plan for a Plan Year with respect to
Deferral Benefits shall be limited to Employees who meet the requirements of
Section 5.1(b), provided that the Administrator may designate, on a
case-by-case basis, Employees or categories of Employees who shall not be
eligible to participate in the Plan with respect to all or any portion of
Deferral Benefits, and provided further, that the determination of eligible
Employees shall be made consistent with the requirement that the Plan be a
"top-hat" plan for purposes of ERISA.

     (b) CRITERIA. Generally, an Employee will be eligible to participate in
the Plan for a Plan Year with respect to Deferral Benefits if the Employee is:

                    (i) an "active" (i.e., providing services to Amex or an
               approved subsidiary) employee on the December 31st immediately
               preceding the Plan Year and during the entire Plan Year;

                    (ii) a senior-level employee ("Band 50" or above) on the
               December 31st immediately preceding the Plan Year and during
               the entire Plan Year; and

                    (iii) either:
                         (A) subject to U.S. federal income tax for
                             the Plan Year; or

                         (B) designated by Amex as an eligible U.S. Dollar-Paid
                             Expatriate who is a U.S. citizen or U.S. green
                             card holder for the Plan Year.

     (c) NOTIFICATION. Employees eligible to participate in the Plan for a
Plan Year with respect to Deferral Benefits will be notified by Amex of their
eligibility to participate for such Plan Year. If Amex erroneously notifies an
individual of his or her eligibility to participate, and such individual does
not meet the requirements of Section 5.1(b) or such individual has been
excluded by the Administrator pursuant to Section 5.1(a), such erroneous
notification shall not cause the individual to be eligible, and any Deferral
Election made by such ineligible individual shall be null and void and of no
effect.

     (d) NEWLY ELIGIBLE EMPLOYEES. To the extent permissible under Section
409A, Employees who become eligible to participate in the Plan during a Plan
Year with respect to Deferral Benefits and who have not previously
participated in an account-balance deferred compensation arrangement (as
defined for purposes of Section 409A) of Amex or its subsidiaries may be
offered by Amex the opportunity to participate in the Plan for the Plan Year
with respect to Deferral Benefits with respect to his or her post-election
Base Salary for the Plan Year and the post-election portion of his or her
Annual Incentive Award for the Plan Year.

     (e) CHANGE IN STATUS. If the employee status of a Participant changes to
"inactive" during a Plan Year for any reason, including, but not limited to,
severance, or termination of employment (for any reason, including, but not

                                     -15-
<PAGE>

limited to, retirement, disability or death), the Deferral Election of the
Employee for the Plan Year will become immediately void, except for any
amounts already deferred prior to such change in status. If the Participant
elected to defer a portion of his or her Base Salary and the Participant's
employee status changes to "inactive" during a Plan Year, the Participant's
Base Salary deductions will be discontinued and previous deductions will be
credited to the Participant's Deferral Account for the Plan Year. In the case
of a leave of absence, the Base Salary deductions in effect prior to the leave
will resume when the Participant returns from leave to "active" status. In
each situation, the Participant's Base Salary deferral amount for the Plan
Year will be reduced accordingly.

SECTION 5.2 PARTICIPATION. An eligible Employee for a Plan Year shall become a
Participant in the Plan with respect to Deferral Benefits for such Plan Year
by making a Deferral Election in accordance with Section 5.4 for the Plan
Year.

SECTION 5.3       DEFERRABLE COMPENSATION.

     (a) ELIGIBLE COMPENSATION.

                    (i) An eligible Employee for a Plan Year may elect to
               defer a specified dollar amount from one or more of the
               following items for the Plan Year:

                      (A) the Employee's Base Salary;

                      (B) the Employee's Annual Incentive Award; and

                      (C) the Employee's PG Award.

                    (ii) Notwithstanding Section 5.3(a)(i), an Employee who
               becomes eligible to participate in the Plan with respect to
               Deferral Benefits during a Plan Year who is offered the
               opportunity by Amex to participate as described in Section
               5.1(d) may only elect to defer a specified dollar amount from
               one or more of the following items for the Plan Year:

                      (A) the post-election portion of the Employee's Base
                          Salary; and

                      (B) the post-election portion of the Employee's Annual
                          Incentive Award.

     (b) MINIMUM DEFERRAL. The minimum dollar amount of each item eligible for
deferral under Section 5.3(a) that may be deferred by an Employee for a Plan
Year shall be $5,000, unless otherwise determined by the Administrator in its
sole discretion.

     (c) MAXIMUM DEFERRAL. Unless otherwise determined by the Administrator in
its sole discretion, the maximum dollar amount that may be deferred by an
Employee for a Plan Year from all items eligible for deferral under Section
5.3(a) shall be 100 percent of the Employee's Base Salary as of the December
31st immediately preceding the Plan Year (or with respect to an Employee who
becomes eligible to participate in the Plan with respect to Deferral Benefits
during a Plan Year, 100 percent of the Employee's Base Salary as of the date
he or she becomes eligible to so participate).

                                     -16-
<PAGE>

SECTION 5.4       DEFERRAL BENEFITS ELECTION.

     (a) TIME OF DEFERRAL ELECTION. An eligible Employee for a Plan Year who
wants to participate in the Plan with respect to Deferral Benefits for a Plan
Year must make a Deferral Election for the Plan Year before the beginning of
the Plan Year; provided, however, that an Employee described in Section
5.1(d), may make a Deferral Election for the Plan Year in which he or she
becomes eligible to participate within 30 days of becoming eligible to
participate.

     (b) FORM OF DEFERRAL ELECTION. A Deferral Election for a Plan Year shall
be made either (i) in writing on the form provided by Amex for the purpose of
making such an election, or (ii) by means of the electronic enrollment process
made available by Amex for the purpose of making such an election.

     (c) CONTENTS OF DEFERRAL ELECTION. In his or her Deferral Election for a
Plan Year, the Employee shall specify:

                    (i) the items of his or her compensation eligible for
               deferral under Section 5.3(a) that the Employee wishes to defer
               for the Plan Year and the dollar amount of each such item to be
               deferred, provided that the amount of each item to be deferred
               complies with the requirements of Section 5.3(b) and the total
               amount of all items to be deferred complies with Section
               5.3(c);

                    (ii) the time when his or her Deferral Account for such
               Plan Year shall be paid, which shall be either (A) the
               Retirement of the Participant, or (B) a specified date at least
               five years after the last day of the Plan Year; and

                    (iii) the form of payment of his or her Deferral Account
               for the Plan Year, which shall be (A) a lump sum, or (B) five,
               ten or 15 substantially equal annual installments.

SECTION 5.5 CREDITING OF DEFERRAL ACCOUNTS. The Administrator shall establish
and maintain a Deferral Account with respect to each Participant for the
Deferral Benefits of each Plan Year. Amounts deferred by a Participant for a
Plan Year shall be credited to the Deferral Account established for the
Participant for such Plan Year at such times and in such manner as may be
determined by the Administrator. In making such credits, the Administrator
shall generally attempt to, but shall not be required to, credit accounts at a
time when the items deferred would otherwise have been paid to the
Participant.

SECTION 5.6       ACCOUNT EARNINGS.

     (a) EARNINGS. A Participant's Deferral Account for a Plan Year shall be
credited with interest equivalents each calendar year at the Schedule Rate in
effect for the calendar year.

                                     -17-
<PAGE>

     (b) VESTING.

                    (i) PRINCIPAL. The principal amount of a Participant's
               Deferral Account for a Plan Year shall be 100 percent vested at
               all times.

                    (ii) EARNINGS. The earnings on a Participant's Deferral
               Account for a Plan Year for a given calendar year at the
               Minimum Schedule Rate for the calendar year shall be 100
               percent vested as such earnings are accrued and credited. The
               portion of the earnings on a Participant's Deferral Account for
               a Plan Year for a given calendar year at the applicable
               Schedule Rate in excess of the Minimum Schedule Rate for the
               calendar year, if any, shall become vested on the date that the
               Participant becomes Retirement Eligible.

                                  ARTICLE 6
                              PAYMENT OF BENEFITS

SECTION 6.1       SUPPLEMENTAL ACCOUNT.

     (a) Payment of Supplemental Benefits shall be made as follows: (i) if a
Participant has elected (or is deemed to have elected) a lump-sum payment, it
shall be made on the first January 1 or July 1 which is at least six months
following the Participant's Separation from Service for any reason from the
Company, or as soon thereafter as administratively feasible (provided,
however, that all such payments made in 2006 shall be made on July 1); (ii) if
a Participant has elected annual installment payments, they shall begin on
July 1 of the calendar year following the Participant's Separation from
Service for any reason from the Company, or as soon thereafter as
administratively feasible, and shall continue on each July 1 thereafter for
the period selected by the Participant. A Participant who has experienced a
Separation from Service and has begun receiving payments as set forth above,
shall continue receiving any remaining payments according to the terms in
effect on the date of his or her Separation from Service, even if later
re-employed by the Company.

     (b) The payment of Supplemental Benefits to a Participant under this
Section 6.1 shall be limited to a Participant's vested portion of his or her
Supplemental Account at the time of distribution. Unless otherwise expressly
provided in the Plan, a Participant's vested portion shall be determined under
the vesting provisions of the Qualified Retirement Plans. Any non-vested
portion of amounts credited to a Participant hereunder shall be forfeited.

SECTION 6.2       DEFERRAL ACCOUNT.

     (a) SPECIFIED DATE ELECTIONS. If a Participant designated a specified
date as the time when a Deferral Account of such Participant is to be paid,
and the Participant has not had a Separation of Service as of the specified
date, then payment of the such Deferral Account shall be made as follows: (A)
if the Participant elected a lump-sum payment of such Deferral Account, it
shall be made on the first March 15 or September 15 which is at least six
months following the specified date, or as soon thereafter as
administratively; and (B) if the Participant elected annual installment
payments of such Deferral Account, it shall begin on March 15 of the calendar
year following the specified date, or as soon thereafter as administratively

                                     -18-
<PAGE>

feasible, and shall continue on each March 15 thereafter for the period
selected by the Participant. If a Participant who is to receive or has begun
receiving payments in annual installments under this Section 6.2(a)
experiences a Separation from Service before having received all of the annual
installments to which the Participant is entitled, then if the Participant is
Retirement Eligible at the time of his or her Separation from Service, the
Participant shall receive or continue to receive the remaining annual
installment payments as scheduled, and if the Participant is not Retirement
Eligible at the time of his or her Separation from Service, then the remaining
installments shall be paid to the Participant in a lump sum pursuant to
Section 6.2(b)(ii).

     (b) SEPARATION FROM SERVICE. If a Participant has a Separation of
Service, regardless of whether the Participant designated a later specified
date as the time when a Deferral Account is to be paid, then:

                    (i) If a Participant is Retirement Eligible at the time of
               his or her Separation from Service, then payment of the
               Participant's Deferral Accounts shall be made as follows: (A)
               if the Participant elected a lump-sum payment of a Deferral
               Account, payment of such Deferral Account shall be made on the
               first March 15 or September 15 which is at least six months
               following the Participant's Separation from Service for any
               reason from the Company, or as soon thereafter as
               administratively; and (B) if the Participant elected annual
               installment payments of the Deferral Account, payment of such
               Deferral Account shall begin on March 15 of the calendar year
               following the Participant's Separation from Service for any
               reason from the Company, or as soon thereafter as
               administratively feasible, and shall continue on each March 15
               thereafter for the period selected by the Participant. A
               Participant who has experienced a Separation from Service and
               has begun receiving payments as set forth above, shall continue
               receiving any remaining payments according to the terms in
               effect on the date of his or her Separation from Service, even
               if later re-employed by the Company.

                    (ii) If a Participant is not Retirement Eligible at the
               time of his or her Separation from Service, then regardless of
               the Participant's Deferral Elections, payment of all of the
               Participant's Deferral Accounts shall be made in a lump sum on
               the first March 15 or September 15 which is at least six months
               following the Participant's Separation from Service, or as soon
               thereafter as administratively feasible.

     (c) PAYMENT LIMITED TO VESTED AMOUNT. The payment of a Participant's
Deferral Account for a Plan Year under this Section 6.2 shall be limited to a
Participant's vested portion of his or her Deferral Account at the time of
distribution. Any non-vested portion of amounts credited to a Participant
hereunder shall be forfeited.

SECTION 6.3 DESIGNATION OF BENEFICIARIES. A Participant may separately
designate a Beneficiary or Beneficiaries entitled to receive payment of his or
her Supplemental Account and his or her Deferral Account by filing written
notice of such designation with the Administrator in such form as the
Administrator may prescribe. A Participant may revoke or modify such
designation at any time by a further written designation in such form as the
Administrator may prescribe. A Participant's Beneficiary designation shall be
deemed automatically revoked in the event of the death of the Beneficiary or,
if the Beneficiary is the Participant's spouse, in the event of dissolution of
marriage. If no designation is in effect at the time Benefits payable under
the Plan become due, the Beneficiary shall be deemed to be the Participant's
surviving spouse, if any, and if not, the Participant's estate.

                                     -19-
<PAGE>

SECTION 6.4       DEATH.

     (a) SUPPLEMENTAL ACCOUNT. Upon a Participant's death, payment of the
Participant's Supplemental Account shall be made to the Participant's
Beneficiary or Beneficiaries designated to receive the Participant's
Supplemental Account. If a Participant dies while still actively employed by
the Company, the payment of his or her Supplemental Account shall be made as a
single lump-sum payment on the first January 1 or July 1 which is at least six
months following the Participant's death, or as soon thereafter as
administratively feasible. If a Participant elects annual installment payments
and dies after such installment payments have commenced, any remaining
installment payments shall be made to the Participant's Beneficiary or
Beneficiaries as a single lump-sum payment on the first January 1 or July 1
which is at least six months following the Participant's death, or as soon
thereafter as administratively feasible.

     (b) DEFERRAL ACCOUNT. Upon a Participant's death, payment of the
Participant's Deferral Account shall be made to the Participant's Beneficiary
or Beneficiaries designated to receive the Participant's Deferral Account. If
a Participant dies while still actively employed by the Company, the payment
of his or her Deferral Account shall be made as a single lump-sum payment on
the first March 15 or September 15 which is at least six months following the
Participant's death, or as soon thereafter as administratively feasible. If a
Participant elects annual installment payments and dies after such installment
payments have commenced, any remaining installment payments shall be made to
the Participant's Beneficiary or Beneficiaries as a single lump-sum payment on
the first March 15 or September 15 which is at least six months following the
Participant's death, or as soon thereafter as administratively feasible.

SECTION 6.5       DISABILITY.

     (a) SUPPLEMENTAL ACCOUNT. In the event of the Disability of a
Participant, payment of the Participant's Supplemental Account shall be made
as follows: (i) if the Participant elected a lump-sum payment of his or her
Supplemental Account, payment shall be made on the first January 1 or July 1
which is at least six months following the Participant's date of Disability,
or as soon thereafter as administratively feasible; and (ii) if the
Participant elected annual installment payments of his or her Supplemental
Account, payment shall begin on July 1 of the calendar year following the
Participant's date of Disability, or as soon thereafter as administratively
feasible, and shall continue on each July 1 thereafter for the period selected
by the Participant.

     (b) DEFERRAL ACCOUNTS. In the event of the Disability of a Participant,
payment of each of the Participant's Deferral Accounts shall be made as
follows: (i) if the Participant elected a lump-sum payment of his or her
Deferral Account for the Plan Year, payment of that Deferral Account shall be
made on the first March 15 or September 15 which is at least six months
following the Participant's date of Disability, or as soon thereafter as
administratively feasible; and (ii) if the Participant elected annual
installment payments of his or her Deferral Account for the Plan Year, payment
of that Deferral Account shall begin on March 15 of the calendar year
following the Participant's date of Disability, or as soon thereafter as
administratively feasible, and shall continue on each March 15 thereafter for
the period selected by the Participant for such Deferral Account.

                                     -20-
<PAGE>

SECTION 6.6 UNFORESEEN EMERGENCY. Upon the request of a Participant and based
on a showing of an unforeseeable emergency, as defined by Section 409A, the
Administrator may, in its sole discretion, vary the manner and time of making
the distributions provided in this Article 6 to the extent permitted by
Section 409A.

SECTION 6.7 COMPANY OFFSET. Notwithstanding anything in the Plan, the RP or
the RSP to the contrary, any amount otherwise due or payable under the Plan
may be forfeited, or its payment suspended, at the discretion of the
Administrator, to apply toward or recover any claim the Company may have
against the Participant, including but not limited to, for the enforcement of
Amex's Detrimental Conduct provisions under its long-term incentive award
plan, to recover a debt to the Company or to recover a benefit overpayment
under a Company benefit plan or program.

SECTION 6.8 WITHHOLDING. The Company shall be entitled to deduct from any
payment under the Plan, regardless of the form of such payment, the amount of
all applicable income and employment taxes, if any, required by law to be
withheld with respect to such payment or may require the Participant to pay to
it such tax prior to and as a condition of the making of such payment.

                                  ARTICLE 7
                               CHANGE IN CONTROL

SECTION 7.1       CHANGE IN CONTROL.  "Change in Control" means the happening
of any of the following:

     (a) Any individual, entity or group (within the meaning of Section
13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") becomes the beneficial
owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
25 percent or more of either (i) the then outstanding common shares of Amex
(the "Outstanding Company Common Shares") or (ii) the combined voting power of
the then outstanding voting securities of Amex entitled to vote generally in
the election of directors (the "Outstanding Company Voting Securities");
provided, however, that such beneficial ownership shall not constitute a
Change in Control if it occurs as a result of any of the following
acquisitions of securities: (A) any acquisition directly from Amex; (B) any
acquisition by Amex or any corporation, partnership, trust or other entity
controlled by Amex (a "Subsidiary"); (C) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by Amex or any
Subsidiary; (D) any acquisition by an underwriter temporarily holding Amex
securities pursuant to an offering of such securities; (E) any acquisition by
an individual, entity or group that is permitted to, and actually does, report
its beneficial ownership on Schedule 13-G (or any successor schedule),
provided that, if any such individual, entity or group subsequently becomes
required to or does report its beneficial ownership on Schedule 13D (or any
successor schedule), then, for purposes of this subsection, such individual,
entity or group shall be deemed to have first acquired, on the first date on
which such individual, entity or group becomes required to or does so report,
beneficial ownership of all of the Outstanding Company Common Stock and
Outstanding Company Voting Securities beneficially owned by it on such date;
or (F) any acquisition by any corporation pursuant to a reorganization, merger
or consolidation if, following such reorganization, merger or consolidation,
the conditions described in clauses (i), (ii) and (iii) of Section 7.1(c) are
satisfied. Notwithstanding the foregoing, a Change in Control shall not be
deemed to occur solely because any Person (the "Subject Person") became the
beneficial owner of 25 percent or more of the Outstanding Company Common
Shares or Outstanding Company Voting Securities as a result of the acquisition
of Outstanding Company Common Shares or Outstanding Company Voting Securities
by Amex which, by reducing the number of Outstanding Company Common Shares or
Outstanding Company Voting Securities, increases the proportional number of
shares beneficially owned by the Subject Person; provided, that if a Change in
Control would be deemed to have occurred (but for the operation of this
sentence) as a result of the acquisition of Outstanding Company Common Shares
or Outstanding Company Voting Securities by Amex, and after such share
acquisition by Amex, the Subject Person becomes the beneficial owner of any
additional Outstanding Company Common Shares or Outstanding Company Voting
Securities which increases the percentage of the Outstanding Company Common
Shares or Outstanding Company Voting Securities beneficially owned by the
Subject Person, then a Change in Control shall then be deemed to have
occurred; or

     (b) Individuals who, as of the date hereof, constitute the Board (the
"Incumbent Board") cease for any reason to constitute at least a majority of
the Board; provided, however, that any individual becoming a director
subsequent to the date hereof whose election, or nomination for election by
Amex's shareholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though
such individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of either an actual or threatened election contest or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board, including by reason of agreement intended to avoid or
settle any such actual or threatened contest or solicitation; or

     (c) The consummation of a reorganization, merger, statutory share
exchange, consolidation, or similar corporate transaction involving Amex or
any of its direct or indirect Subsidiaries (each a "Business Combination"), in
each case, unless, following such Business Combination, (i) the Outstanding
Company Common Shares and the Outstanding Company Voting Securities
immediately prior to such Business Combination, continue to represent (either
by remaining outstanding or being converted into voting securities of the
resulting or surviving entity or any parent thereof) more than 50 percent of
the then-outstanding shares of common stock and the combined voting power of
the then-outstanding voting securities entitled to vote generally in the
election of directors, as the case may be, of the corporation resulting from
Business Combination (including, without limitation, a corporation that, as a
result of such transaction, owns Amex or all or substantially all of Amex's
assets either directly or through one or more subsidiaries), (ii) no Person
(excluding Amex, any employee benefit plan (or related trust) of Amex, a
Subsidiary or such corporation resulting from such Business Combination or any
parent or subsidiary thereof, and any Person beneficially owning, immediately
prior to such Business Combination, directly or indirectly, 25 percent or more
of the Outstanding Company Common Shares or Outstanding Company Voting
Securities, as the case may be) beneficially owns, directly or indirectly, 25
percent or more of, respectively, the then outstanding shares of common stock
of the corporation resulting from such Business Combination (or any parent
thereof) or the combined voting power of the then outstanding voting

                                     -21-
<PAGE>

securities of such corporation entitled to vote generally in the election of
directors and (iii) at least a majority of the members of the board of
directors of the corporation resulting from such Business Combination (or any
parent thereof) were members of the Incumbent Board at the time of the
execution of the initial agreement or action of the Board providing for such
Business Combination; or

     (d) The consummation of the sale, lease, exchange or other disposition of
all or substantially all of the assets of Amex, unless such assets have been
sold, leased, exchanged or disposed of to a corporation with respect to which
following such sale, lease, exchange or other disposition (i) more than 50
percent of, respectively, the then outstanding shares of common stock of such
corporation and the combined voting power of the then outstanding voting
securities of such corporation (or any parent thereof) entitled to vote
generally in the election of directors is then beneficially owned, directly or
indirectly, by all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the Outstanding Company Common
Shares and Outstanding Company Voting Securities immediately prior to such
sale, lease, exchange or other disposition in substantially the same
proportions as their ownership immediately prior to such sale, lease, exchange
or other disposition of such Outstanding Company Common Shares and Outstanding
Company Voting Shares, as the case may be, (ii) no Person (excluding Amex and
any employee benefit plan (or related trust)) of Amex or a Subsidiary or of
such corporation or a subsidiary thereof and any Person beneficially owning,
immediately prior to such sale, lease, exchange or other disposition, directly
or indirectly, 25 percent or more of the Outstanding Company Common Shares or
Outstanding Company Voting Securities, as the case may be) beneficially owns,
directly or indirectly, 25 percent or more of respectively, the then
outstanding shares of common stock of such corporation (or any parent thereof)
and the combined voting power of the then outstanding voting securities of
such corporation (or any parent thereof) entitled to vote generally in the
election of directors and (iii) at least a majority of the members of the
board of directors of such corporation (or any parent thereof) were members of
the Incumbent Board at the time of the execution of the initial agreement or
action of the Board providing for such sale, lease, exchange or other
disposition of assets of Amex; or

     (e) Approval by the shareholders of Amex of a complete liquidation or
dissolution of Amex.

SECTION 7.2       EFFECT OF CHANGE IN CONTROL.  This Section 7.2 shall apply in
the event of a Change in Control.

     (a) RABBI TRUST. Notwithstanding Section 10.1 and any other provision
herein to the contrary, to the extent permitted by Section 409A without excise
tax or penalty, effective immediately upon a Change of Control, the entire
value of each Participant's Account under the Plan shall be maintained in a
trust (the "Trust") established by Amex for this purpose and the Company shall
transfer to the Trust an amount sufficient to fund the entire value of each
Participant's Account. The Trust is intended to be classified for federal
income tax purposes as a "grantor trust" within the meaning of Subpart E, Part
I, Subchapter J, Chapter 1, Subtitle A of the Code.

                                     -22-
<PAGE>

     (b) ACCOUNT EARNINGS.

                    (i) RSP-RELATED ACCOUNT.

                         (A) Notwithstanding Section 4.7(b)(ii), effective
                    immediately upon a Change in Control, to the extent a
                    subaccount of a RSP-Related Account established on behalf
                    of a Participant reflects, or by the terms of the Plan
                    should in the future reflect, the performance of the Stock
                    Fund, it shall thereafter reflect the performance of the
                    Stable Value Fund.

                         (B) Notwithstanding Section 4.7(b)(iii), in the event
                    that any time after a Change in Control either (A) the RSP
                    is frozen or terminated and is not replaced by a
                    comparable qualified incentive savings plan, or (B) there
                    are no investment funds available under the RSP (or
                    successor qualified investment savings plan) to which a
                    Participant may direct the investment of his or her
                    RSP-Related Account, then a Participant's RSP-Related
                    Account shall thereafter be credited with earnings of at
                    least the Moody's A Rate.

                    (ii) DEFERRAL ACCOUNTS.

                         (A) Notwithstanding Section 5.6(a), effective
                    immediately upon a Change in Control, the applicable
                    Schedule Rate for the calendar year in which the Change in
                    Control occurs and the immediately following calendar year
                    shall be no less than nine percent;

                         (B) Notwithstanding Section 5.6(a), effective
                    immediately upon a Change in Control, the applicable
                    Schedule Rate for the second calendar year immediately
                    following the calendar year in which the Change in Control
                    occurs and each calendar year thereafter shall be no less
                    than the Moody's A Rate for such calendar year.

                         (C) If a Participant who is eligible to receive
                    lump-sum severance under the Severance Plan experiences a
                    Separation from Service within the two-year period
                    following a Change in Control, and the Participant would
                    have become Retirement Eligible during the serial
                    severance period for which the Participant would have been
                    eligible in a non-Change-in-Control situation, then upon
                    such Separation from Service, the Participant shall
                    immediately become 100 percent vested in the earnings on
                    his or her Deferral Account under Section 5.6(b)(ii) as if
                    the Participant were Retirement Eligible on the date of
                    the Separation from Service.

     (c) TAX GROSS-UP.

                         (i) In the event that any payment or benefit received
                    or to be received by a Participant hereunder in connection
                    with a Change in Control or termination of such
                    Participant's employment (such payments and benefits,
                    excluding Gross-Up Payment (as hereinafter defined), being
                    hereinafter referred to collectively as the "Payments"),
                    will be subject to the excise tax referred to in Section
                    4999 of the Code (the "Excise Tax"), then (A) in the case
                    of a Participant who is classified in Band 70 (or its
                    equivalent) or above immediately prior to such Change in
                    Control (a "Tier 1 Employee"), the Company shall pay to
                    such Tier 1 Employee, within five days after receipt by
                    such Tier 1 Employee of the written statement referred to
                    in Section 7.2(iv), an additional amount (the "Gross-Up
                    Payment") such that the net amount retained by such Tier 1
                    Employee, after deduction of any Excise Tax on the
                    Payments and any federal, state and local income and
                    employment taxes and Excise Tax upon the Gross-Up Payment,
                    shall be equal to the Payments and (B) in the case of a
                    Participant other than a Tier 1 Employee, the Payments
                    shall be reduced to the extent necessary so that no
                    portion of the Payments is subject to the Excise Tax but
                    only if (a) the net amount of all Total Payments (as
                    hereinafter defined), as so reduced (and after subtracting
                    the net amount of federal, state and local income and
                    employment taxes on such reduced Total Payments) is

                                     -23-
<PAGE>

                    greater than or equal to (b) the net amount of such Total
                    Payments without any such reduction (but after subtracting
                    the net amount of federal, state and local income and
                    employment taxes on such Total Payments and the amount of
                    Excise Tax to which the Participant may elect in writing
                    to have other components of his or her Total Payments
                    reduced prior to any reduction in the Payments hereunder.

                        (ii) For purposes of determining whether the Payments
                    will be subject to the Excise Tax, the amount of such Excise
                    Tax and whether any Payments are to be reduced hereunder:
                    (A) all payments and benefits received or to be received
                    by the Participant in connection with such Change in
                    Control or the termination of such Participant's
                    employment, whether pursuant to the terms of this
                    Agreement or any other plan, arrangement or agreement with
                    the Company, any Person whose actions result in such
                    Change in Control or any Person affiliated with the
                    company or such Person (all such payments and benefits,
                    excluding the Gross-Up Payment and any similar gross-up
                    payment to which a Tier 1 Employee may be entitled under
                    any such other plan, arrangement or agreement, being
                    hereinafter referred to as the "Total Payments), shall be
                    treated as "parachute payments" (within the meaning of
                    Section 280G(b)(2) of the Code) unless, in the opinion of
                    the Firm, such payments or benefits (in whole or in part)
                    do not constitute parachute payments, including by reason
                    of Section 280G(2)(A) or Section 280G(b)(4)(A) of the
                    Code; (B) no portion of the Total Payments the receipt or
                    enjoyment of which the Participant shall have waived at
                    such time and in such manner as not to constitute a
                    "payment" within the meaning of Section 280G(b) of the
                    Code shall be taken into account; (C) all "excess
                    parachute payment" within the meaning of Section
                    280G(b)(2) of the Code shall be treated as subject to the
                    Excise Tax unless, in the opinion of the Firm, such excess
                    parachute payments (in whole or in part) represent
                    reasonable compensation for services actually rendered
                    (within the meaning of Section 280G(g)(4)(B) of the Code)
                    in excess of the Base Amount (within the meaning of
                    Section 280G(b)(3) of the Code) allocable to such
                    reasonable compensation, or are otherwise not subject to
                    the excise Tax; and (D) the value of any non-cash benefits
                    or any deferred payment or benefit shall be determined by
                    the Firm in accordance with the principles of Sections
                    280G(d)(3) and (4) of the Code and regulations or other
                    guidance thereunder. For purposes of determining the
                    amount of the Gross-Up Payment in respect of a Tier 1
                    Employee and whether any Payments in respect of a
                    Participant (other than a Tier 1 Employee) shall be
                    reduced, a Participant shall be deemed to pay federal
                    income tax at the highest marginal rate of federal income
                    taxation (and state and local income taxes at the highest
                    marginal rate of taxation in the state and locality of
                    such Participant's residence, net of the maximum reduction
                    in federal income taxes which could be obtained from
                    deduction of such state and local taxes) in the calendar
                    year in which the Gross-Up Payment is to be made (in the
                    case of a Tier 1 Employee) or in which the Payments are
                    made (in the case of a Participant other than a Tier 1
                    Employee). The Firm will be paid reasonable compensation
                    by the Company for its services.

                                     -24-
<PAGE>

                         (iii) In the event that the Excise Tax is finally
                    determined to be less than the amount taken into account
                    hereunder in calculating the Gross-Up Payment, then an
                    amount equal to the amount of the excess of the earlier
                    payment over the redetermined amount (the "Excess Amount")
                    will be deemed for all purposes to be a loan to the Tier 1
                    Employee made on the date of the Tier 1 Employee's receipt
                    of such Excess Amount, which the Tier 1 Employee will have
                    an obligation to repay to the Company on the fifth
                    business day after demand, together with interest on such
                    amount at the Section 1274 Rate from the date of the Tier
                    1 Employee's receipt of such excess Amount until the date
                    of such repayment (or such lesser rate (including zero) as
                    may be designated by the Firm such that the Excess Amount
                    and such interest will not be treated as a parachute
                    payment as previously defined). In the event that the
                    Excise Tax is finally determined to exceed the amount
                    taken into account hereunder in calculating the Gross-Up
                    Payment (including by reason of any payment the existence
                    or amount of which cannot be determined at the time of the
                    Gross-Up Payment), within five business days of such
                    determination, the Company will pay to the Tier 1 Employee
                    an additional amount, together with interest thereon from
                    the date such additional amount should have been paid to
                    the date of such payment, at the Section 1274 Rate (or
                    such lesser rate (including zero) as may be designated by
                    the Firm such that the amount of such deficiency and such
                    interest will not be treated as a parachute payment as
                    previously defined). The Tier 1 Employee and the Company
                    shall each reasonably cooperate with the other in
                    connection with any administrative or judicial proceedings
                    concerning the amount of any Gross-Up Payment.

                         (iv) As soon as practicable following a Change in
                    Control, the Company shall provide to each Tier 1 Employee
                    and to each other Participant with respect to whom it is
                    proposed that Payments be reduced, a written statement
                    setting forth the manner in which the Total Payments in
                    respect of such Tier 1 Employee or other Participant were
                    calculated and the basis for such calculations, including,
                    without limitation, any opinions or other advice the
                    Company has received from the Firm or other advisors or
                    consultants (and any such opinions or advice which are in
                    writing shall be attached to the statement).

                                   ARTICLE 8
                               CLAIMS PROCEDURES

SECTION 8.1       CLAIM.

     (a) A Participant or Beneficiary who believes that he or she is being
denied a Benefit to which he or she is entitled under the Plan may file a
written request for such Benefit with the Administrator, setting forth his or
her claim for Benefits.

     (b) Other than with respect to claims to which ERISA expressly provides a
limitations period, no action may be commenced against any Plan party after
the earliest to occur of the following dates: the date that is 90 days after
the date of the final denial of the appeal, or the date that is one year from
the date a cause of action accrued. For purposes of this Article 8, a cause of
action is considered to have accrued when the person bringing the legal action
knew, or in the exercise of reasonable diligence should have known, that a

                                     -25-
<PAGE>

Plan party has clearly repudiated the claim or legal position which is the
subject of the action, regardless of whether such person has filed a claim for
Benefits in accordance with the provisions of this Article 8. The
Administrator shall be the Plan's agent for service of process.

     (c) A Participant or Beneficiary must exhaust all remedies under the
Plan's claims procedures before being entitled to seek relief under Section
8.5.

SECTION 8.2       CLAIM DECISION.

     (a) Except as otherwise provided by Section 8.2(b), the Administrator
shall reply to any claim filed under Section 8.1 within 90 days of receipt,
unless it determines to extend such reply period for an additional 90 days for
reasonable cause and notifies the claimant in advance of the reasons for the
extension and the date by which the Administrator expects to make a decision.
If the claim is denied in whole or in part, such reply shall include a written
explanation, using language calculated to be understood by the Participant or
Beneficiary, setting forth:

     (i) the specific reason or reasons for such denial;

     (ii) the specific reference to relevant provisions of the Plan on which
such denial is based;

     (iii) a description of any additional material or information necessary
for the Participant or Beneficiary to perfect his or her claim and an
explanation why such material or such information is necessary;

     (iv) appropriate information as to the steps to be taken if the
Participant or Beneficiary wishes to submit the claim for review;

     (v) the time limits for requesting a review under Section 8.3 and
     for review under Section 8.4; and

     (vi) the Participant's or Beneficiary's right to bring an action for
     Benefits under Section 502 of ERISA (subject to Section 8.5) if Benefits
     are denied on review.

     (b) If the claim is a claim for Benefits that requires a determination
regarding whether a Participant is Disabled to be made by the Administrator
(and not by some party other than the Administrator or the Plan for purposes
other than a benefit determination under the Plan), the Administrator will
respond to the Participant's claim within a reasonable period of time and in
any case within 45 days (provided that the Administrator may utilize up to two
30-day extension periods, in each case to the extent that the Administrator
determines that circumstances beyond the control of the Plan so require, and
shall in each case provide the claimant with an advance notice setting forth
the reasons for the extension and the date by which the Administrator expects
to render a decision, the standards on which entitlement to a Benefit is
based, the unresolved issues that prevent a decision on the claim, and the
additional information needed to resolve such issues). In the event that
additional information is necessary to resolve a claim requiring the
Administrator to rule on the Participant's Disabled status, the claimant shall
be afforded at least 45 days to provide the information (during which time the
periods to provide notice and a decision on the claim shall be tolled).

                                     -26-
<PAGE>

     (c) In the event of a claim requiring the Administrator to rule on the
Participant's Disabled status, the Administrator's written notice of claim
denial shall provide the claimant (in addition to the items described in
Section 8.2(a)) with a copy of any internal rule, guideline, protocol or other
similar criterion relied upon during the claims process or with a statement
that such an internal rule, guideline, protocol or other similar criterion was
relied upon and that a copy will be provided free of charge upon request, and
if a medical necessity or experimental treatment or similar exclusion or limit
was imposed, the Administrator will provide an explanation of the scientific
or clinical judgment for the determination (applying the terms of the Plan to
the claimant's medical circumstances) or a statement that such an explanation
will be provided free of charge upon request.

SECTION 8.3       REQUEST FOR REVIEW.

     (a) Except as otherwise provided by Section 8.3(b), within 60 days after
the receipt by the Participant or Beneficiary of the written explanation
described above, the Participant or Beneficiary may request in writing that
the Administrator review its determination. The Participant or Beneficiary, or
his or her duly authorized representative, may, but need not, review the
relevant documents and submit issues and comments in writing for consideration
by the Administrator. Reasonable access to and copies of any documents,
records and other information relevant to the claim will be provided free of
charge upon request, subject to attorney-client, attorney work-product and
other applicable privilege rules unless otherwise required by ERISA. Except as
otherwise provided by Section 8.3(b), if the Participant or Beneficiary does
not request a review of the initial determination within such 60-day period,
the Participant or Beneficiary shall be barred and estopped from challenging
the determination.

     (b) In the event of a claim requiring the Administrator to make a
determination regarding the Participant's Disabled status, the claimant shall
have 180 days after receipt of the written explanation described above to
request in writing that the determination be reviewed, and shall be barred and
estopped from challenging the determination if he or she does not request a
review of the initial determination within such 180-day period.

SECTION 8.4       REVIEW OF DECISION.

     (a) After considering all materials presented by the Participant or
Beneficiary, the Administrator will render a written decision, setting forth
the specific reasons for the decision and containing specific references to
the relevant provisions of the Plan on which the decision is based. The
decision on review shall normally be made within 60 days after the
Administrator's receipt of the Participant's or Beneficiary's claim or
request. If an extension of time is required for a hearing or other special
circumstances, the Participant or Beneficiary shall be notified of the reasons
for the extension and the date as of which the Administrator expects to make a
decision, and the time limit shall be 120 days. The decision shall be in
writing using language calculated to be understood by the Participant or
Beneficiary, and shall set forth:

          (i) the specific reason or reasons for such denial;

          (ii) the specific reference to relevant provisions of the Plan on
     which such denial is based;

                                     -27-
<PAGE>

          (iii) a statement that the claimant is entitled, upon request and
     free of charge, to receive reasonable access to and copies of all
     documents, records and other information relevant to the claimant's claim
     (subject to attorney-client, attorney work-product and other applicable
     privilege rules unless otherwise required by ERISA); and

          (iv) the Participant's or Beneficiary's right to bring an action for
     Benefits under Section 502 of ERISA now that the claim has been denied on
     appeal (subject to Section 8.5).

     (b) In the event of a claim requiring the Administrator to make a
determination regarding the Participant's Disabled status, the Administrator
shall ensure that no deference is afforded to the prior determination, that
the persons who made the initial determination on behalf of the Administrator
shall not be involved in the review, and that the persons who make the
decision on review on behalf of the Administrator are not subordinates of the
original decision-makers. In the event that a medical judgment is required,
the persons conducting the review shall consult with a health care
professional of appropriate training and experience in the relevant field of
medicine and shall identify any medical or vocational experts consulted to the
claimant. No health care professional consulted in the course of the review
shall be a person consulted in the course of the original determination (or a
subordinate of such person). The claim determination on review of a claim
requiring the Administrator to make a determination regarding the
Participant's Disabled status shall be provided within 45 days (90 days, if
the Administrator determines that special circumstances require an extension
and so informs the Participant). In the event of such a claim denial, in
addition to the items required above, the Administrator shall provide a copy
of any internal rule, guideline, protocol or other similar criterion relied
upon during the claims process or a statement that such an internal rule,
guideline, protocol or other similar criterion was relied upon and that a copy
will be provided upon request, and if a medical necessity or experimental
treatment or similar exclusion or limit was imposed, the Administrator will
provide an explanation of the scientific or clinical judgment for the
determination (applying the terms of the Plan to the claimant's medical
circumstances) or a statement that such an explanation will be provided free
of charge upon request.

     (c) All decisions on review shall be final and shall bind all parties
concerned to the maximum extent permitted by law.

SECTION 8.5       ARBITRATION.

     (a) Notwithstanding anything herein to the contrary and to the extent
permitted by ERISA, upon completion of the claims process set forth in this
Article 8, the Administrator, a Participant or a Beneficiary will have the
right to compel binding arbitration with respect to any claim for Benefits or
damages. If any such party chooses to compel arbitration, the process and
procedure shall be governed by the terms and conditions of the American
Express Company Employment Arbitration Policy and Employment Arbitration
Acknowledgment Form ("Policy"), to the extent such Policy is consistent with

                                     -28-
<PAGE>

the terms of the Plan. This includes, but is not limited to, the Policy's
prohibition against claims being arbitrated on a class action basis or on
bases involving claims brought in a representative capacity on behalf of any
other similarly situated party. In addition, if any party chooses to compel
arbitration, the arbitrator will be bound by the substantive terms of the Plan
and ERISA (including, but not limited to, the standard of review required by
ERISA).

     (b) To the extent required by Sections 2560.503-1(c)(2)-(3) and
2560.503-1(d) of the Labor Regulations, arbitration shall not be required in
the case of a claim which requires the Administrator to make a determination
with respect to the Participant's Disabled status.

SECTION 8.6 BURDEN OF PROOF. Notwithstanding anything herein to the contrary,
to the extent a Participant or Beneficiary asserts entitlement to Benefits
based upon facts not contained in the Plan's records, such person shall be
required to provide satisfactory affirmative evidence of such facts. For
avoidance of doubt, if a person claims entitlement to benefits based upon
Compensation for RSP-Related Account or RP-Related Account purposes, Years of
Service, or Base Salary, Annual Incentive Awards or PG Awards, that are not
reflected in the Plan's records, such person must provide satisfactory
affirmative evidence of such Compensation, Years of Service, Base Salary,
Annual Incentive Awards or PG Awards. The Administrator shall have the sole
and exclusive discretion to determine whether the above-referenced affirmative
evidence is satisfactory.

SECTION 8.7 ADMINISTRATOR'S SOLE AUTHORITY. Notwithstanding Section 3.2 or any
other provision of the Plan, the Administrator shall have the sole and
exclusive authority with respect to any matter, action or decision under this
Article 8, and the Committee shall have neither any authority with respect to
such matters, nor the right or ability to limit or to interfere in any way
with the Administrator's authority with respect to such matters.

                                   ARTICLE 9
                            AMENDMENT & TERMINATION

SECTION 9.1 PLAN AMENDMENT. The Committee or its delegate may, at any time,
amend or terminate the Plan, provided that the Committee may not reduce or
modify the amount of any Benefit payable to a Participant or any Beneficiary
receiving Benefit payments at the time the Plan is amended or terminated.
Notwithstanding the foregoing, the Committee shall not have the right to amend
or modify the terms and provisions of the Plan to the extent such amendment or
modification would result in a violation of Section 409A.

SECTION 9.2 EFFECT OF PLAN TERMINATION. If the Plan is terminated, no
additional deferrals or contributions shall be credited to any Participant
Account hereunder. Following Plan termination, Participants' Accounts shall be
paid at such time and in such form as provided under Article 6.
Notwithstanding the foregoing, either at the time of termination or on a
subsequent date, the Committee may, in its discretion, determine to distribute
the then existing Account balances of Participants and Beneficiaries and,
following such distribution, there shall be no further obligation to any
Participant or Beneficiary under the Plan; provided, however, that the
authority granted to the Committee under this Section 9.2 shall be implemented
in compliance with the requirements of and only to the extent permissible
under Section 409A.

                                     -29-
<PAGE>

                                  ARTICLE 10
                              GENERAL PROVISIONS

SECTION 10.1 UNFUNDED STATUS. Nothing in the Plan shall create, or be
construed to create, a trust of any kind or fiduciary relationship between the
Company and the Participant, his or her designated Beneficiary, or any other
person. Any funds deferred under the provisions of the Plan shall be construed
for all purposes as a part of the general funds of the Company, and any right
to receive payments from the Company under the Plan shall be no greater than
the right of any unsecured general creditor. The Company may, but need not,
purchase any securities or instruments as a means of hedging its obligations
to any Participant under the Plan.

SECTION 10.2 NON-TRANSFERABLE. The right of any Participant, or other person,
to the payment of deferred compensation under the Plan shall not be assigned,
transferred, pledged or encumbered except by the laws of descent and
distribution.

SECTION 10.3 NO RIGHT TO CONTINUED EMPLOYMENT. Participation in the Plan shall
not be construed as conferring upon the Participant the right to continue in
the employ of the Company as an executive or in any other capacity. The
Company expressly reserves the right to dismiss any employee at any time
without liability for the effect such dismissal might have upon him or her
hereunder.

SECTION 10.4 PLAN BENEFITS NOT COMPENSATION UNDER EMPLOYEE BENEFIT PLANS. Any
deferred compensation payable under the Plan shall not be deemed salary or
other compensation to the Participant for the purpose of computing the
benefits under any plan or arrangement (including but not limited to any
"employee benefit plan" under ERISA) except as expressly provided in such plan
or arrangement.

SECTION 10.5 COMPLIANCE WITH SECTION 409A. The Plan is intended to comply with
Section 409A, and shall be interpreted, operated and administered consistent
with this intent. To the extent the terms of the Plan fail to qualify for
exemption from or to satisfy the requirements of Section 409A, the Plan may be
operated in compliance with Section 409A pending amendment to the extent
authorized by the Internal Revenue Service. In such circumstances, the Plan
will be administered in a manner which adheres as closely as possible to its
existing terms while complying with Section 409A.

SECTION 10.6      NO GUARANTEE OF TAX CONSEQUENCES.

     (a) The Company makes no representations or warranties and assumes no
responsibility as to the tax consequences to any Participant who enters into a
deferred compensation agreement with the Company pursuant to the Plan.
Further, payment by the Company to Participant (or to a Participant's
Beneficiary or Beneficiaries) in accordance with the terms of the Plan,
including any designation of Beneficiary on file with the Administrator at the
time of Participant's death, shall be binding on all interested parties and
persons, including Participant's heirs, executors, administrators and assigns,
and shall discharge the Company, its directors, officers and employees from
all claims, demands, actions or causes of action of every kind arising out of
or on account of Participant's participation in the Plan, known or unknown,
for himself or herself, his or her heirs, executors, administrators and
assigns.

                                     -30-
<PAGE>

     (b) No person connected with the Plan in any capacity, including, but not
limited to, the Company and its directors, officers, agents and employees,
makes any representation, commitment, or guarantee that any tax treatment,
including, but not limited to, Federal, state and local income, estate and
gift tax treatment, will be applicable to any amounts deferred under the Plan,
or paid to or for the benefit of a Participant or Beneficiary under the Plan,
or that such tax treatment will apply to or be available to a Participant or
Beneficiary on account of participation in the Plan.

     (c) Any agreement executed pursuant to the Plan shall be deemed to
include the above provision of this Section 10.6.

SECTION 10.7 LIMITATIONS ON LIABILITY. Neither the establishment of the Plan
nor any modification thereof, nor the creation of any account under the Plan,
nor the payment of any benefits under the Plan shall be construed as giving to
any Participant or other person any legal or equitable right against the
Company, or any officer or employer thereof except as provided by law or by
any Plan provision. No person (including the Company) in any way guarantees
any Participant's Account from loss or depreciation, whether caused by poor
investment performance of a deemed investment or the inability to realize upon
an investment due to an insolvency affecting an investment vehicle or any
other reason. In no event shall the Company or any successor, employee,
officer, director or stockholder of the Company, be liable to any person on
account of any claim arising by reason of the provisions of the Plan or of any
instrument or instruments implementing its provisions (except that the Company
shall make benefit payments in accordance with the terms of the Plan), or for
the failure of any Participant, Beneficiary or other person to be entitled to
any particular tax consequences with respect to the Plan, or any credit or
distribution hereunder.

SECTION 10.8 SEVERABILITY. If any provision of the Plan is held to be illegal
or void, such illegality or invalidity shall not affect the remaining
provisions of the Plan, but shall be fully severable, and the Plan shall be
construed and enforced as if said illegal or invalid provision had never been
inserted herein.

SECTION 10.9 CAPTIONS. The headings and captions herein are provided for
reference and convenience only, shall not be considered part of the Plan, and
shall not be considered in the construction of the Plan.

SECTION 10.10 GOVERNING LAW. The Plan shall be construed in accordance with
and governed by the laws of the State of New York to the extent not superseded
by federal law, without reference to the principles of conflict of laws.

                                   * * * * *

                                     -31-
<PAGE>

                                  SCHEDULE A

                        DEFERRAL ACCOUNT SCHEDULE RATE

For each calendar year, the Schedule Rate used to determine the earnings
credited on a Participant's Deferral Accounts for such calendar year shall be
determined under the following metric, based on Amex's "ROE" for such calendar
year and its "ROE Target Range" for such calendar year:

<TABLE>
<CAPTION>
<S>                                          <C>
 ------------------------------------------- ------------------------------------------
 ------------------------------------------- ------------------------------------------
                Amex's ROE                                  Schedule Rate
 ------------------------------------------- ------------------------------------------
 ------------------------------------------- -----------------------------------------
           Below ROE Target Range                         Moody's A Rate
 ------------------------------------------- ------------------------------------------
          Within ROE Target Range                               9%
 ------------------------------------------- ------------------------------------------
           Above ROE Target Range                               11%
 ------------------------------------------- ------------------------------------------
</TABLE>

Amex's "ROE" for a calendar year means Amex's consolidated annual return on
equity for such calendar year, as reported by Amex, subject to adjustment for
significant accounting changes as determined by the Committee in its sole
discretion.

Amex's "ROE TARGET RANGE" for a calendar year means the ROE target range
announced by Amex and in effect on January 1st of such calendar year.

EXCEPT AS OTHERWISE PROVIDED BY SECTION 7.2(B)(II) OF THE PLAN, THE SCHEDULE
RATE UNDER THIS SCHEDULE A FOR ANY CALENDAR YEAR MAY BE CHANGED BY THE
COMMITTEE, PROSPECTIVELY OR RETROSPECTIVELY, IN ITS SOLE DISCRETION, WITHOUT
PRIOR NOTICE TO OR CONSENT OF PARTICIPANTS OR BENEFICIARIES.

                                     -32-$1,200,000 term note between Champion Industries, Inc. and Community Trust
      Bank, Inc. dated as of July 28 2006

    

      PROMISSORY
        NOTE

      
        	
                Principal

                $1,200,000.00

              	
                Loan
                  Date

                07-28-2006

              	
                Maturity

                07-28-2011

              	
                Loan
                  No.

                6010040275500005

              	
                Call
                  / Coll

                25

              	
                Account

              	
                Officer

                906

              	
                Initials

              

      

      References
        in the shaded area are for Lender's use only and do not limit the applicability
        of this document to any particular loan or item. Any item above containing
        "'***" has been omitted due to text length limitations.

      

       

      Borrower:
        CHAMPION INDUSTRIES, INC. (TIN: 55-0717455) Lender: COMMUNITY
        TRUST BANK, INC.

      P.O.
        BOX
        2968      COMMERCIAL
        LENDING (PIKEVILLE MAIN)

      HUNTINGTON.
        WV 25728-2968    346
        NORTH
        MAYO TRAIL

      P.O.
        BOX
        2947

      PIKEVILLE,
        KY 41502-2947

      

      Principal
        Amount: $1,200,000.00 Initial
        Rate: 8.250% Date
        of
        Note: July 28, 2006

      

      PROMISE
        TO PAY. CHAMPION INDUSTRIES INC ("Borrower") promises to pay to COMMUNITY
        TRUST
        BANK, INC. ("Lender"), or order, In lawful money of the United States of
        America, the principal amount of One Million Two Hundred Thousand & 00/100
        Dollars ($12,000,000.00), together with interest on the unpaid principal
        balance
        from July 28, 2006 until paid in full.

      

      PAYMENT.
        Subject to any payment changes resulting form changes in the index, Borrower
        will pay this loan in 60 payments of $24,549.14 each payment. Borrower’s first
        payment is due August 28, 2006, and all subsequent payments are due on the
        same
        day of each month after that. Borrower’s final payment will be due on July 28,
        2011, and will be for all principal and all accrued interest not yet paid.
        Payments include principal and interest. Unless otherwise agreed or required
        by
        applicable law, payments will be applied first to any accrued unpaid interest;
        then to principal; then to any unpaid collection costs; then to any late
        charges. The annual interest rate for the Note is computed on a 365/360 basis;
        that is, by applying the ratio of annual interest rate over a year of 360
        days,
        multiplied by the outstanding principal balance, multiplied by the actual
        number
        of days the principal balance is outstanding. Borrower will pay Lender at
        Lender's address shown above or at such other place as Lender may designate
        in
        writing. 

      

      VARIABLE
        INTEREST RATE. The interest rate on this Note is subject to change from time
        to
        time based on changes in an independent index which is the Highest Prime
        Rate
        most recently published in “The Wall Street Journal’s money rates column” as the
        base rate on corporate loans at large U.S. money center commercial banks.
        (the
“Index”). The index is not necessarily the lowest rate charged by Lender on its
        loans. If the index becomes unavailable during the term of this loan, Lender
        may
        designate a substitute index after notifying Borrower. Lender will tell Borrower
        the current index rate upon Borrower’s request. The interest rate change will
        not occur more often than each day, [Any change in the Prime Rate shall be
        effective as of the day on which the change is announced to become effective].
        Borrower understands that Lender may make loans based on other rates as well.
        The Index currently is 8.250% per annum. The interest rate to be applied
        to the
        unpaid principal balance of this Note will be at a rate equal to the index,
        resulting in an initial rate of 8.250% per annum. NOTICE: Under no circumstances
        will interest rate on this Note be more than the maximum rate allowed by
        applicable law. Whenever increases occur in the interest rate, Lender, at
        its
        option, may do one or more of the following: (A) increase Borrower’s payment to
        ensure Borrower’s loan will pay off by its original final maturity date, (B)
        increase Borrower’s payments to cover accruing interest, (C) increase the number
        of Borrower’s payments, and (D) continue Borrower’s payments at the same amount
        and increase Borrower’s final payment. 

      

      PREPAYMENT.
        Borrower may pay without penalty all or portion of the amount owed earlier
        than
        it is due. Early payments will not, unless agreed to by Lender in writing,
        relieve Borrower of Borrower’s obligation to continue to make payments of
        accrued unpaid interest. Rather, early payments will reduce the principal
        balance due and may result in Borrower’s making fewer payments. Borrower agrees
        not to send Lender payments marked “paid in full”, “without recourse”, or
        similar language. If Borrower sends such a payment, Lender may accept it
        without
        losing any of Lender’s rights under this Note, and Borrower will remain
        obligated to pay any further amount owed to Lender. All written communications
        concerning disputed amounts, including any check or other payment instrument
        that indicates that the payment constitutes “payment if full” of the amount owed
        or that is tendered with other conditions or limitations or as full satisfaction
        of a disputed amount must be mailed or delivered to: Community Trust Bank,
        Inc.,
        P.O. Box 2947 Pikeville, KY 41502-2947.

      

      LATE
        CHARGE. If a payment is 10 days or more lately, Borrower will be charged
        5.000%
        of the regularly scheduled payment. 

      

      INTEREST
        AFTER DEFAULT. Upon default, including failure to pay upon final maturity,
        the
        interest rate on this Note shall be increased by adding a 2,000 percentage
        point
        margin “Default Rate Margin”). The Default Rate Margin shall also apply to each
        succeeding interest rate change that would have applied had there been no
        default. However, in no event will the interest rate exceed the maximum interest
        rate limitations permitted under applicable law.

      

      DEFAULT.
        Each of the following shall constitute an event of default (“Event of Default”)
        under this Note.

      

      Payment
        Default- Borrower fails to make any payment when due under this
        Note.

       

      Other
        Defaults- Borrower fails to comply with or to perform any other term,
        obligation, covenant or condition contained in this Note or in any of the
        related documents or to comply with or perform any term, obligation, covenant,
        or condition contained in any other agreement between Lender and Borrower.
        

      

      Default
        in favor of third parties- Borrower or any Grantor defaults under any loan,
        extension of credit, security agreement, purchase or sales agreement, or
        any
        other agreement, in favor of any other creditor or person that may materially
        effect any of Borrower’s property or Borrower’s ability to repay this Note or
        perform Borrower’s obligations under this Note or any of the related documents.

      

      False
        Statements- Any warranty, representation or statement made or furnished to
        Lender by Borrower or on Borrower’s behalf under this Note or the related
        documents is false or misleading in any material respect, either now or at
        the
        time made or furnished or becomes false or misleading at any time
        thereafter.

      

      Insolvency-
        The dissolution or termination of Borrower’s existence as a going business, the
        insolvency or Borrower, the appointment of a receiver for any part of Borrower’s
        property, any assignment for the benefit of creditors, any type of creditor
        workout, or the commencement of any proceeding under any bankruptcy or
        Insolvency laws by or against Borrower. 

      

      Creditor
        or Forfeiture Proceedings. Commencement of foreclosure of forfeiture
        proceedings, whether by judicial proceeding, self-help, repossession or any
        other method, by any creditor of Borrower or by any governmental agency against
        any collateral securing the loan. This includes a garnishment of any of
        Borrower’s accounts, including deposit accounts, with Lender. However, the Event
        of Default shall not apply if there is a good faith dispute by Borrower as
        to
        the validity or reasonableness of the claim which is the basis of the creditor
        or forfeiture proceeding and if Borrower gives Lender written notice of the
        creditor or forfeiture proceeding and deposits with Lender monies or a surety
        bond for the creditor or forfeiture proceeding, in an amount determined by
        Lender, in its sole discretion, as being an adequate reserve or bond for
        the
        dispute.

      

      Events
        Affecting Guarantor- Any of the preceding events occurs with respect to any
        guarantor, endorser, surely, or accommodation party of any of the indebtedness
        or any guarantor, endorser, surety, or accommodation part dies or becomes
        incompetent, or revokes or disputes the validity of, or liability under,
        any
        guaranty of the indebtedness evidenced by this Note. In the event of a death,
        Lender, at this option, may, but shall not be required to , permit the
        guarantor’s estate to assume unconditionally the obligations arising under the
        guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event
        of
        Default.

      

      

      Change
        in
        Ownership- Any change in ownership of twenty-five percent (25%) or more of
        the
        common stock of Borrower. 

      

      Adverse
        Change- A material adverse change occurs in Borrower’s financial condition, or
        Lender believes the prospect of payment or performance of this Note is impaired.
        

      

      Insecurity-
        Lender in good faith believes itself insecure. 

      

      Cure
        Provisions - If any default, other than a default in payment is curable and
        if
        Borrower has not been given a notice of a breach of the same provision of
        this
        Note within the preceding twelve (12) months, it may be cured if Borrower,
        after
        receiving written notice from Lender demanding cure of such default: (1)
        cures
        the default within ten (10) days; or (2) if the cure requires more than ten
        (10)
        days, immediately initiates steps which Lender deems in Lender’s sole discretion
        to be sufficient to cure the default and thereafter continues and completes
        all
        reasonable and necessary steps sufficient to produce compliance as soon as
        reasonable practical.               

       

      LENDER’S
        RIGHTS. Upon default, Lender may declare the entire unpaid principal balance
        on
        this Note and all accrued unpaid interest immediately due, and then Borrower
        will pay that amount. 

      

      ATTORNEYS’
        FEES; EXPENSES. Lender may hire or pay someone else to help collect this
        Note if
        Borrower does not pay. Borrower will pay Lender that amount. This includes,
        subject to any limits under applicable law, Lender’s attorneys’ fees and
        Lender’s legal expenses, whether or not there is a lawsuit, including attorneys’
fees, expense for bankruptcy proceedings (including efforts to modify or
        vacate
        any automatic stay or injunction), and appeals. If not prohibited by law,
        Borrower also will pay any court costs, in addition to all other sums provided
        by law.

      

      JURY
        WAIVER. Lender and Borrower hereby waive the right to any jury trial in any
        action, proceeding, or counterclaim brought by either Lender or Borrower
        against
        the other. 

      

      GOVERNING
        LAW. This Note will be governed by Federal law applicable to the Lender and,
        to
        the extent not preempted by federal law, the laws of the Commonwealth of
        Kentucky without regard to its conflicts of law provisions. This Note has
        been
        accepted by the Lender in the Commonwealth of Kentucky. 

      

      CHOICE
        OF
        VENUE. If there is a lawsuit, Borrower agrees upon Lender’s request to submit to
        the jurisdiction of the courts of Pike County, Commonwealth of Kentucky.
        

      

      DISHONORED
        ITEM FEE. Borrower will pay a fee to Lender of $20.00 if Borrower makes a
        payment on Borrower’s loan and the check or preauthorized charge with which
        Borrower pays is later dishonored.

      

      RIGHT
        OF
        SETOFF. To the extent permitted by applicable law, Lender reserves the right
        of
        setoff in all Borrower’s accounts with Lender (whether checking, savings, or
        some other account). This includes all accounts Borrower holds jointly with
        someone else and all accounts Borrower may open in the future. However, this
        does not include any IRA or Keogh accounts, or any trust accounts for which
        setoff would be prohibited by law. Borrower authorizes Lender, to the extent
        permitted by applicable law, to charge or setoff all sums owing on the
        indebtedness against any and all such accounts. 

      

      COLLATERAL.
        Borrower acknowledges this Note is secured by (1) HEIDELBERG COLOR PRINTING
        PRESS SM 74-6-P + L S/N627630 WITH THE FOLLOWING ATTACHMENTS: (1) DOM.ACC.HEAD
        FOR M7012V000/SUVAM7012V00, (1) S/W LICENSE PRE.INTERF. 74 VERSION S/N
        1253014566A AND (1) PRINECT PREPRESS INTERFACE OHNE LAUFWERK.

      

      INTEREST
        INCREASE. THIS NOTE’S INTEREST RATE WILL BE INCREASED BY 2% PER ANNUM IF ANY
        PAYMENT IS NOT RECEIVED WITHIN 30 DAYS OF ITS DUE DATE. 

      

      SUCCESSOR
        INTERESTS. The terms of this Note shall be binding upon Borrower, and upon
        Borrower’s heirs, personal representatives, successors and assigns, and shall
        inure to the benefit of Lender and its successors and assigns. 

      

      GENERAL
        PROVISIONS. If any part of this Note cannot be enforced, this fact will not
        affect the rest of the Note. Lender may delay or forgo enforcing any of its
        rights or remedies under this Note without losing them. Borrower and any
        other
        person who signs, guarantees or endorses this Note, to the extent allowed
        by
        law, waive presentiment, demand for payment, and notice of dishonor. Upon
        any
        change in terms of this Note, and unless otherwise expressly stated in writing,
        no party who signs this Note, whether as maker, guarantor, accommodation
        maker
        or endorser, shall be released form liability. All such parties agree that
        Lender may renew or extend (repeatedly and for any length of time) this loan
        or
        release any party or guarantor or collateral; or impair, fail to realize
        upon or
        perfect Lender’s security interest in the collateral; and take any other action
        deemed necessary by Lender without the consent of or notice to anyone. All
        such
        parties also agree that Lender may modify this loan without the consent of
        or
        notice to anyone other than the party with whom the modification is made.
        The
        obligations under this Note are joint and several. 

      

      WEST
        VIRGINIA INSURANCE NOTICE. Unless Borrower provides Lender with evidence
        of the
        Insurance coverage required by Borrower’s agreement with Lender, Lender may
        purchase insurance at Borrower’s expense to protect Lender’s interest in the
        collateral. This insurance may, but need not, protect Borrower’s interests. The
        coverage that Lender purchases may not pay any claim that Borrower makes
        or any
        claim that is made against Borrower in connection with the collateral. Borrower
        may later cancel any insurance purchased by Lender, but only after providing
        Lender with evidence that Borrower has obtained insurance as required by
        their
        agreement. If Lender purchases insurance for the collateral, Borrower will
        be
        responsible for the cost of the that insurance, including interest and any
        other
        charges Lender may impose in connection with the placement of the insurance,
        until the effective date of the cancellation or expiration of the insurance.
        The
        costs of the insurance may be added to Borrower’s total outstanding balance or
        obligation. The costs of the insurance may be more than the cost of insurance
        Borrower may be able to obtain on Borrower’s own. 

      

      PRIOR
        TO
        SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS
        NOTE,
        INCLUDING THE VARIABLE INTEREST RATE PROVISIONS, BORROWER AGREES TO TERMS
        OF
        THIS NOTE. 

      

      BORROWER
        ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

      

      BORROWER:

      

      CHAMPION
        INDUSTRIES, INC.

      

      

      By:
        /s/ Toney K. Adkins

      TONEY
        K.
        ADKINS, PRESIDENT OF CHAMPION

      INDUSTRIES,
        INC. 

      

      LENDER:

      

      COMMUNITY
        TRUST BANK, INC. 

      

      

      X__________________________________________

      AUTHORIZED
        SIGNER

       

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      COMMERCIAL
        SECURITY AGREEMENT

      
        	
                Principal

                $1,200,000.00

              	
                Loan
                  Date

                07-28-2006

              	
                Maturity

                07-28-2011

              	
                Loan
                  No.

                6010040275500005

              	
                Call
                  / Coll

                25

              	
                Account

              	
                Officer

                906

              	
                Initials

              

      

      References
        in the shaded area are for Lender's use only and do not limit the applicability
        of this document to any particular loan or item. Any item above containing
        "'***" has been omitted due to text length limitations.

      

       

      Borrower:
        CHAMPION INDUSTRIES, INC. (TIN: 55-0717455) Lender: COMMUNITY
        TRUST BANK, INC.

      P.O.
        BOX
        2968      COMMERCIAL
        LENDING (PIKEVILLE MAIN)

      HUNTINGTON.
        WV 25728-2968    346
        NORTH
        MAYO TRAIL

      P.O.
        BOX
        2947

      PIKEVILLE,
        KY 41502-2947

                     

      THIS
        COMMERCIAL SECURITY AGREEMENT dated July 28, 2006, is made and executed between
        CHAMPION INDUSTRIES INC ("Grantor") and COMMUNITY TRUST BANK, INC.
        ("Lender").

      

      GRANT
        OF
        SECURITY INTEREST. For valuable consideration, Grantor grants to Lender a
        security interest in the Collateral to secure the Indebtedness and agrees
        that
        Lender shall have the rights stated in this Agreement with respect to the
        Collateral, in addition to all other rights which Lender may have by
        law.

      

      COLLATERAL
        DESCRIPTION. The word "Collateral" as used in this Agreement means the following
        described property, whether now owned or hereafter acquired, whether now
        existing or hereafter arising, and wherever located, in which Grantor is
        giving
        to Lender a security interest for the payment of the Indebtedness and
        performance of all other obligations under the Note and this
        Agreement:

      

      Purchase
        Money Security Interest in (1) HEIDELBERG COLOR PRINGTING PRESS SM 74-6-P
        + L
        S/N 627630 WITH THE FOLLOWING ATTACHMENTS (1) DOM.ACC.HEAD FOR
        M8023V000/SUVAM7012V00, (1) S/W LICENSE PRE.INTERF. 74 VERSION S/N 12530
        14566A
        AND (1) PRINECT PREPRESS INTERFACE OHNE LAUFWERK.

      In
        addition, the word "Collateral" also includes all the following, whether
        now
        owned or hereafter acquired, whether now existing or hereafter arising, and
        wherever located:

      

      (A)
        All
        accessions, attachments, accessories, tools, parts, supplies, replacements
        of
        and additions to any of the collateral described herein, whether added now
        or
        later.

      (B)
        All
        products and produce of any of the property described in this Collateral
        section.

      (C)
        All
        accounts, general intangibles, instruments, rents, monies, payments, and
        all
        other rights, arising out of a sale, lease, consignment or other disposition
        of
        any of the property described in this Collateral section.

      (D)
        All
        proceeds (including insurance proceeds) from the sale, destruction, loss,
        or
        other disposition of any of the property described in this Collateral section,
        and sums due from a third party who has damaged or destroyed the Collateral
        or
        from that party's insurer, whether due to judgment, settlement or other
        process.

      (E)
        All
        records and data relating to any of the property described in this Collateral
        section, whether in the form of a writing, photograph, microfilm, microfiche,
        or
        electronic media, together with all of Grantor's right, title, and interest
        in
        and to all computer software required to utilize, create, maintain, and process
        any such records or data on electronic media.

      

      RIGHT
        OF
        SETOFF. To the extent permitted by applicable law. Lender reserves a right
        of
        setoff in all Grantor's accounts with Lender (whether checking. savings.
        or some
        other account). This includes all accounts Grantor holds jointly with someone
        else and all accounts Grantor may open in the future. However, this does
        not
        include any IRA or Keogh accounts, or any trust accounts for which setoff
        would
        be prohibited by law. Grantor authorizes Lender, to the extent permitted
        by
        applicable law, to charge or setoff all sums owing on the Indebtedness against
        any and all such accounts.

      

      GRANTOR'S
        REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL. With respect
        to
        the Collateral, Grantor represents and promises to Lender that:

      

      Perfection
        of Security Interest. Grantor agrees to take whatever actions are requested
        by
        Lender to perfect and continue Lender's security interest in the Collateral.
        Upon request of Lender, Grantor will deliver to Lender any and all of the
        documents evidencing or constituting the Collateral, and Grantor will note
        Lender's interest upon any and all chattel paper and instruments if not
        delivered to Lender for possession by Lender.

      

      Notices
        to Lender. Grantor will promptly notify Lender in writing at Lender's address
        shown above (or such other addresses as Lender may designate from time to
        time)
        prior to any (1) change in Grantor's name; (2) change in Grantor's assumed
        business name(s); (3) change in the management of the Corporation Grantor;
        (4)
        change in the authorized signer(s); (5) change in Grantor's principal office
        address; (6) change in Grantor's state of organization; (7) conversion of
        Grantor to a new or different type of business entity; or (8) change in any
        other aspect of Grantor that directly or indirectly relates to any agreements
        between Grantor and Lender. No change in Grantor's name or state of organization
        will take effect until after Lender has received notice.

      No
        Violation. The execution and delivery of this Agreement will not violate
        any law
        or agreement governing Grantor or to which Grantor is a party, and its
        certificate or articles of incorporation and bylaws do not prohibit any term
        or
        condition of this Agreement.

      

      Enforceability
        of Collateral. To the extent the Collateral consists of accounts, chattel
        paper,
        or general intangibles, as defined by the Uniform Commercial Code, the
        Collateral is enforceable in accordance with its terms, is genuine, and fully
        complies with all applicable laws and regulations concerning form, content
        and
        manner of preparation and execution, and all persons appearing to be obligated
        on the Collateral have authority and capacity to contract and are in fact
        obligated as they appear to be on the Collateral. There shall be no setoffs
        or
        counterclaims against any of the Collateral, and no agreement shall have
        been
        made under which any deductions or discounts may be claimed concerning the
        Collateral except those disclosed to Lender in writing.

      

      Location
        of the Collateral. Except in the ordinary course of Grantor's business, Grantor
        agrees to keep the Collateral at Grantor's address shown above or at such
        other
        locations as are acceptable to Lender. Upon Lender's request, Grantor will
        deliver to Lender in form satisfactory to Lender a schedule of real properties
        and Collateral locations relating to Grantor's operations, including without
        limitation the following: (1) all real property Grantor owns or is purchasing;
        (2) all real property Grantor is renting or leasing; (3) all storage facilities
        Grantor owns, rents, leases, or uses; and (4) all other properties where
        Collateral is or may be located.

      

      Removal
        of the Collateral. Except in the ordinary course of Grantor's business, Grantor
        shall not remove the Collateral from its existing location without Lender's
        prior written consent. To the extent that the Collateral consists of vehicles,
        or other titled property, Grantor shall not pledge any action which would
        require application for the certificates of title for the vehicles outside
        the
        State of West Virginia, without Lender’s prior written consent. Grantor shall,
        whenever requested, advise Lender of the exact location of the
        Collateral.

      

      Transactions
        Involving Collateral. Except for inventory sold or accounts collected in
        the
        ordinary course of Grantor's business, or as otherwise provided for in this
        Agreement, Grantor shall not sell, offer to sell, or otherwise transfer or
        dispose of the Collateral. Grantor shall not pledge, mortgage, encumber or
        otherwise permit the Collateral to be subject to any lien, security interest,
        encumbrance, or charge, other than the security interest provided for in
        this
        Agreement, without the prior written consent of Lender. This includes security
        interests even if junior in right to the security interests granted under
        this
        Agreement. Unless waived by Lender, all proceeds from any disposition of
        the
        Collateral (for whatever reason) shall be held in trust for Lender and shall
        not
        be commingled with any other funds; provided however, this requirement shall
        not
        constitute consent by Lender to any sale or other disposition. Upon receipt,
        Grantor shall immediately deliver any such proceeds to Lender.

      

      Title.
        Grantor represents and warrants to Lender that Grantor holds good and marketable
        title to the Collateral, free and clear of all liens and encumbrances except
        for
        the lien of this Agreement. No financing statement covering any of the
        Collateral is on file in any public office other than those which reflect
        the
        security interest created by this Agreement or to which Lender has specifically
        consented. Grantor shall defend Lender's rights in the Collateral against
        the
        claims and demands of all other persons.

      

      Repairs
        and Maintenance. Grantor agrees to keep and maintain, and to cause others
        to
        keep and maintain, the Collateral in good order, repair and condition at
        all
        times while this Agreement remains in effect. Grantor further agrees to pay
        when
        due all claims for work done on, or services rendered or material furnished
        in
        connection with the Collateral so that no lien or encumbrance may ever attach
        to
        or be filed against the Collateral.

      

      Inspection
        of Collateral. Lender and Lender's designated representatives and agents
        shall
        have the right at all reasonable times to examine and inspect the Collateral
        wherever located.

      

      Taxes,
        Assessments and Liens. Grantor will pay when due all taxes, assessments and
        liens upon the Collateral, its use or operation, upon this Agreement, upon
        any
        promissory note or notes evidencing the Indebtedness, or upon any of the
        other
        Related Documents. Grantor may withhold any such payment or may elect to
        contest
        any lien if Grantor is in good faith conducting an appropriate proceeding
        to
        contest the obligation to pay and so long as Lender's interest in the Collateral
        is not jeopardized in Lender's sole opinion. If the Collateral is subjected
        to a
        lien which is not discharged within fifteen (15) days, Grantor shall deposit
        with Lender cash, a sufficient corporate surety bond or other security
        satisfactory to Lender in an amount adequate to provide for the discharge
        of the
        lien plus any interest, costs, attorneys' fees or other charges that could
        accrue as a result of foreclosure or sale of the Collateral. In any contest
        Grantor shall defend itself and Lender and shall satisfy any final adverse
        judgment before enforcement against the Collateral. Grantor shall name Lender
        as
        an additional obligee under any surety bond furnished in the contest
        proceedings. Grantor further agrees to furnish Lender with evidence that
        such
        taxes, assessments, and governmental and other charges have been paid in
        full
        and in a timely manner. Grantor may withhold any such payment or may elect
        to
        contest any lien if Grantor is in good faith conducting an appropriate
        proceeding to contest the obligation to pay and so long as Lender's interest
        in
        the Collateral is not jeopardized.

      

      Compliance
        with Governmental Requirements. Grantor shall comply promptly with all laws,
        ordinances, rules and regulations of all governmental authorities, now or
        hereafter in effect, applicable to the ownership, production, disposition,
        or
        use of the Collateral, including all laws or regulations relating to the
        undue
        erosion of highly-erodible land or relating to the conversion of wetlands
        for
        the production of an agricultural product or commodity. Grantor may contest
        in
        good faith any such law, ordinance or regulation and withhold compliance
        during
        any proceeding, including appropriate appeals, so long as Lender's interest
        in
        the Collateral, in Lender's opinion, is not jeopardized.

      

      Hazardous
        Substances. Grantor represents and warrants that the Collateral never has
        been,
        and never will be so long as this Agreement remains a lien on the Collateral,
        used in violation of any Environmental Laws or for the generation, manufacture,
        storage, transportation, treatment, disposal, release or threatened release
        of
        any Hazardous Substance. The representations and warranties contained herein
        are
        based on Grantor's due diligence in investigating the Collateral for Hazardous
        Substances. Grantor hereby (1) releases and waives any future claims against
        Lender for indemnity or contribution in the event Grantor becomes liable
        for
        cleanup or other costs under any Environmental Laws, and (2) agrees to indemnify
        and hold harmless Lender against any and all claims and losses resulting
        from a
        breach of this provision of this Agreement. This obligation to indemnify
        shall
        survive the payment of the Indebtedness and the satisfaction of this
        Agreement.

      

      Maintenance
        of Casualty Insurance. Grantor shall procure and maintain all risks insurance,
        including without limitation fire, theft and liability coverage together
        with
        such other insurance as Lender may require with respect to the Collateral,
        in
        form, amounts, coverages and basis reasonably acceptable to Lender and issued
        by
        a company or companies reasonably acceptable to Lender. Grantor, upon request
        of
        Lender, will deliver to Lender from time to time the policies or certificates
        of
        insurance in form satisfactory to Lender, including stipulations that coverages
        will not be cancelled or diminished without at least thirty (30) days' prior
        written notice to Lender and not including any disclaimer of the insurer's
        liability for failure to give such a notice. Each insurance policy also shall
        include an endorsement providing that coverage in favor of Lender will not
        be
        impaired in any way by any act, omission or default of Grantor or any other
        person. In connection with all policies covering assets in which Lender holds
        or
        is offered a security interest, Grantor will provide Lender with such loss
        payable or other endorsements as Lender may require. If Grantor at any time
        fails to obtain or maintain any insurance as required under this Agreement,
        Lender may (but shall not be obligated to) obtain such insurance as Lender
        deems
        appropriate, including if Lender so chooses "single interest insurance,"
        which
        will cover only Lender's interest in the Collateral.

      

      Application
        of Insurance Proceeds. Grantor shall promptly notify Lender of any loss or
        damage to the Collateral, whether or not such casualty or loss is covered
        by
        insurance. Lender may make proof of loss if Grantor fails to do so within
        fifteen (15) days of the casualty. All proceeds of any insurance on the
        Collateral, including accrued proceeds thereon, shall be held by Lender as
        part
        of the Collateral. If Lender consents to repair or replacement of the damaged
        or
        destroyed Collateral, Lender shall, upon satisfactory proof of expenditure,
        payor reimburse Grantor from the proceeds for the reasonable cost of repair
        or
        restoration. If Lender does not consent to repair or replacement of the
        Collateral, Lender shall retain a sufficient amount of the proceeds to pay
        all
        of the Indebtedness, and shall pay the balance to Grantor. Any proceeds which
        have not been disbursed within six (6) months after their receipt and which
        Grantor has not committed to the repair or restoration of the Collateral
        shall
        be used to prepay the Indebtedness.

      

      Insurance
        Reserves. Lender may require Grantor to maintain with Lender reserves for
        payment of insurance premiums, which reserves shall be created by monthly
        payments from Grantor of a sum estimated by Lender to be sufficient to produce,
        at least fifteen (15) days before the premium due date, amounts at least
        equal
        to the insurance premiums to be paid. If fifteen (15) days before payment
        is
        due, the reserve funds are insufficient, Grantor shall upon demand pay any
        deficiency to Lender. The reserve funds shall be held by Lender as a general
        deposit and shall constitute a non-interest-bearing account which Lender
        may
        satisfy by payment of the insurance premiums required to be paid by Grantor
        as
        they become due. Lender does not hold the reserve funds in trust for Grantor,
        and Lender is not the agent of Grantor for payment of the insurance premiums
        required to be paid by Grantor. The responsibility for the payment of premiums
        shall remain Grantor's sole responsibility.

      

      Insurance
        Reports. Grantor, upon request of Lender, shall furnish to Lender reports
        on
        each existing policy of insurance showing such information as Lender may
        reasonably request including the following: (1) the name of the insurer;
        (2) the
        risks insured; (3) the amount of the policy; (4) the property insured; (5)
        the
        then current value on the basis of which insurance has been obtained and
        the
        manner of determining that value; and (6) the expiration date of the policy.
        In
        addition, Grantor shall upon request by Lender (however not more often than
        annually) have an independent appraiser satisfactory to Lender determine,
        as
        applicable, the cash value or replacement cost of the Collateral.

      

      Financing
        Statements. Grantor authorizes Lender to file a UCC financing statement,
        or
        alternatively, a copy of this Agreement to perfect Lender's security interest.
        At Lender's request, Grantor additionally agrees to sign all other documents
        that are necessary to perfect, protect, and continue Lender's security interest
        in the Property. Grantor will pay all filing fees, title transfer fees, and
        other fees and costs involved unless prohibited by law or unless Lender is
        required by law to pay such fees and costs. Grantor irrevocably appoints
        Lender
        to execute documents necessary to transfer title if there is a default. Lender
        may file a copy of this Agreement as a financing statement. If Grantor changes
        Grantor's name or address, or the name or address of any person granting
        a
        security interest under this Agreement changes, Grantor will promptly notify
        the
        Lender of such change.

      

      GRANTOR'S
        RIGHT TO POSSESSION. Until default, Grantor may have possession of the tangible
        personal property and beneficial use of all the Collateral and may use it
        in any
        lawful manner not inconsistent with this Agreement or the Related Documents,
        provided that Grantor's right to possession and beneficial use shall not
        apply
        to any Collateral where possession of the Collateral by Lender is required
        by
        law to perfect Lender's security interest in such Collateral. If Lender at
        any
        time has possession of any Collateral, whether before or after an Event of
        Default, Lender shall be deemed to have exercised reasonable care in the
        custody
        and preservation of the Collateral if Lender takes such action for that purpose
        as Grantor shall request or as Lender, in Lender's sole discretion, shall
        deem
        appropriate under the circumstances, but failure to honor any request by
        Grantor
        shall not of itself be deemed to be a failure to exercise reasonable care.
        Lender shall not be required to take any steps necessary to preserve any
        rights
        in the Collateral against prior parties, nor to protect, preserve or maintain
        any security interest given to secure the Indebtedness.

      

      LENDER'S
        EXPENDITURES. If any action or proceeding is commenced that would materially
        affect Lender's interest in the Collateral or if Grantor fails to comply
        with
        any provision of this Agreement or any Related Documents, including but not
        limited to Grantor's failure to discharge or pay when due any amounts Grantor
        is
        required to discharge or pay under this Agreement or any Related Documents,
        Lender on Grantor's behalf may (but shall not be obligated to) take any action
        that Lender deems appropriate, including but not limited to discharging or
        paying all taxes, liens, security interests, encumbrances and other claims,
        at
        any time levied or placed on the Collateral and paying all costs for insuring,
        maintaining and preserving the Collateral. All such expenditures incurred
        or
        paid by Lender for such purposes will then bear interest at the rate charged
        under the Note from the date incurred or paid by Lender to the date of repayment
        by Grantor. All such expenses will become a part of the Indebtedness and,
        at
        Lender's option, will (A) be payable on demand; (B) be added to the balance
        of
        the Note and be apportioned among and be payable with any installment payments
        to become due during either (1) the term of any applicable insurance policy;
        or
        (2) the remaining term of the Note; or (C) be treated as a balloon payment
        which
        will be due and payable at the Note's maturity. The Agreement also will secure
        payment of these amounts. Such right shall be in addition to all other rights
        and remedies to which Lender may be entitled upon Default.

      

      DEFAULT.
        Each of the following shall constitute an Event of Default under this
        Agreement:

      

      Payment
        Default. Grantor fails to make any payment when due under the
        Indebtedness.

      

      Other
        Defaults. Grantor fails to comply with or to perform any other term, obligation,
        covenant or condition contained in this Agreement or in any of the Related
        Documents or to comply with or to perform any term, obligation, covenant
        or
        condition contained in any other agreement between Lender and
        Grantor.

      

      Default
        in Favor of Third Parties. Should Borrower or any Grantor default under any
        loan, extension of credit, security agreement, purchase or sales agreement,
        or
        any other agreement, in favor of any other creditor or person that may
        materially affect any of Grantor's property or Grantor's or any Grantor's
        ability to repay the Indebtedness or perform their respective obligations
        under
        this Agreement or any of the Related Documents.

      

      False
        Statements. Any warranty, representation or statement made or furnished to
        Lender by Grantor or on Grantor's behalf under this Agreement or the Related
        Documents is false or misleading in any material respect, either now or at
        the
        time made or furnished or becomes false or misleading at any time
        thereafter.

      

      Defective
        Collateralization. This Agreement or any of the Related Documents ceases
        to be
        in full force and effect (including failure of any collateral document to
        create
        a valid and perfected security interest or lien) at any time and for any
        reason.

      

      Insolvency.
        The dissolution or termination of Grantor's existence as a going business,
        the
        insolvency of Grantor, the appointment of a receiver for any part of Grantor's
        property, any assignment for the benefit of creditors, any type of creditor
        workout, or the commencement of any proceeding under any bankruptcy or
        insolvency laws by or against Grantor.

      

      Creditor
        or Forfeiture Proceedings. Commencement of foreclosure or forfeiture
        proceedings, whether by judicial proceeding, self-help, repossession or any
        other method, by any creditor of Grantor or by any governmental agency against
        any collateral securings the basis of the creditor or forfeiture proceeding
        and
        if Grantor gives Lender written notice of the creditor or forfeiture proceeding
        and the Indebtedness. This includes a garnishment of any of Grantor's accounts,
        including deposit accounts, with Lender. However, this Event of Default shall
        not apply if there is a good faith dispute by Grantor as to the validity
        or
        reasonableness of the claim which is the basis of the creditor or forfeiture
        proceeding and if Grantor gives Lender written notice of the creditor or
        forfeiture proceeding and deposits with Lender monies or a surety bond for
        the
        creditor or forfeiture proceeding, in an amount determined by Lender, in
        its
        sole discretion, as being an adequate reserve or bond for the
        dispute.

      

      Events
        Affecting Guarantor. Any of the preceding events occurs with respect to any
        guarantor, endorser, surety, or accommodation party of any of the Indebtedness
        or guarantor, endorser, surety, or accommodation party dies or becomes
        incompetent or revokes or disputes the validity of, or liability under, any
        Guaranty of the Indebtedness.

      

      Adverse
        Change. A material adverse change occurs in Grantor's financial condition,
        or
        Lender believes the prospect of payment or performance of the Indebtedness
        is
        impaired.

      

      Insecurity.
        Lender in good faith believes itself insecure.

      

      Cure
        Provisions. If any default, other than a default in payment is curable and
        if
        Grantor has not been given a notice of a breach of the same provision of
        this
        Agreement within the preceding twelve (12) months, it may be cured if Grantor,
        after receiving written notice from Lender demanding cure of such default:
        (1)
        cures the default within ten (10) days; or (2) if the cure requires more
        than
        ten (10) days, immediately initiates steps which Lender deems in Lender's
        sole
        discretion to be sufficient to cure the default and thereafter continues
        and
        completes all reasonable and necessary steps sufficient to produce compliance
        as
        soon as reasonably practical.

      

      RIGHTS
        AND REMEDIES ON DEFAULT. If an Event of Default occurs under this Agreement,
        at
        any time thereafter, Lender shall have all the rights of a secured party
        under
        the West Virginia Uniform Commercial Code. In addition and without limitation,
        Lender may exercise anyone or more of the following rights and
        remedies:

      

      Accelerate
        Indebtedness. Lender may declare the entire Indebtedness, including any
        prepayment penalty which Grantor would be required to pay, immediately due
        and
        payable, without notice of any kind to Grantor.

      

      Assemble
        Collateral. Lender may require Grantor to deliver to Lender all or any portion
        of the Collateral and any and all certificates of title and other documents
        relating to the Collateral. Lender may require Grantor to assemble the
        Collateral and make it available to Lender at a place to be designated by
        Lender. Lender also shall have full power to enter upon the property of Grantor
        to take possession of and remove the Collateral. If the Collateral contains
        other goods not covered by this Agreement at the time of repossession, Grantor
        agrees Lender may take such other goods, provided that Lender makes reasonable
        efforts to return them to Grantor after repossession.

      

      Sell
        the
        Collateral. Lender shall have full power to sell, lease, transfer, or otherwise
        deal with the Collateral or proceeds thereof in Lender's own name or that
        of
        Grantor. Lender may sell the Collateral at public auction or private sale.
        Unless the Collateral threatens to decline speedily in value or is of a type
        customarily sold on a recognized market, Lender will give Grantor, and other
        persons as required by law, reasonable notice of the time and place of any
        public sale, or the time after which any private sale or any other disposition
        of the Collateral is to be made. However, no notice need be provided to any
        person who, after Event of Default occurs, enters into and authenticates
        an
        agreement waiving that person's right to notification of sale. The requirements
        of reasonable notice shall be met if such notice is given at least ten (10)
        days
        before the time of the sale or disposition. All expenses relating to the
        disposition of the Collateral, including without limitation the expenses
        of
        retaking, holding, insuring, preparing for sale and selling the Collateral,
        shall become a part of the Indebtedness secured by this Agreement and shall
        be
        payable on demand, with interest at the Note rate from date of expenditure
        until
        repaid.

      

      Appoint
        Receiver. Lender shall have the right to have a receiver appointed to take
        possession of all or any part of the Collateral, with the power to protect
        and
        preserve the Collateral, to operate the Collateral preceding foreclosure
        or
        sale, and to collect the Rents from the Collateral and apply the proceeds,
        over
        and above the cost of the receivership, against the Indebtedness. The receiver
        may serve without bond if permitted by law. Lender's right to the appointment
        of
        a receiver shall exist whether or not the apparent value of the Collateral
        exceeds the Indebtedness by a substantial amount. Employment by Lender shall
        not
        disqualify a person from serving as a receiver.

      

      Collect
        Revenues, Apply Accounts. Lender, either itself or through a receiver, may
        collect the payments, rents, income, and revenues from the Collateral. Lender
        may at any time in Lender's discretion transfer any Collateral into Lender's
        own
        name or that of Lender's nominee and receive the payments, rents, income,
        and
        revenues therefrom and hold the same as security for the Indebtedness or
        apply
        it to payment of the Indebtedness in such order of preference as Lender may
        determine. Insofar as the Collateral consists of accounts, general intangibles,
        insurance policies, instruments, chattel paper, choses in action, or similar
        property, Lender may demand, collect, receipt for, settle, compromise, adjust,
        sue for, foreclose, or realize on the Collateral as Lender may determine,
        whether or not Indebtedness or Collateral is then due. For these purposes,
        Lender may, on behalf of and in the name of Grantor, receive, open and dispose
        of mail addressed to Grantor; change any address to which mail and payments
        are
        to be sent; and endorse notes, checks, drafts, money orders, documents of
        title,
        instruments and items pertaining to payment, shipment, or storage of any
        Collateral. To facilitate collection, Lender may notify account debtors and
        obligors on any Collateral to make payments directly to Lender.

      

      Obtain
        Deficiency. If Lender chooses to sell any or all of the Collateral, Lender
        may
        obtain a judgment against Grantor for any deficiency remaining on the
        Indebtedness due to Lender after application of all amounts received from
        the
        exercise of the rights provided in this Agreement. Grantor shall be liable
        for a
        deficiency even if the transaction described in this subsection is a sale
        of
        accounts or chattel paper.

      

      Other
        Rights and Remedies. Lender shall have all the rights and remedies of a secured
        creditor under the provisions of the Uniform Commercial Code, as may be amended
        from time to time. In addition, Lender shall have and may exercise any or
        all
        other rights and remedies it may have available at law, in equity, or
        otherwise.

      

      Election
        of Remedies. Except as may be prohibited by applicable law, all of Lender's
        rights and remedies, whether evidenced by this Agreement, the Related Documents,
        or by any other writing, shall be cumulative and may be exercised singularly
        or
        concurrently. Election by Lender to pursue any remedy shall not exclude pursuit
        of any other remedy, and an election to make expenditures or to take action
        to
        perform an obligation of Grantor under this Agreement, after Grantor's failure
        to perform, shall not affect Lender's right to declare a default and exercise
        its remedies.

      

      MISCELLANEOUS
        PROVISIONS. The following miscellaneous provisions are a part of this
        Agreement:

      

      Amendments.
        This Agreement, together with any Related Documents, constitutes the entire
        understanding and agreement of the parties as to the matters set forth in this
        Agreement. No alteration of or amendment to this Agreement shall be effective
        unless given in writing and signed by the party or parties sought to be charged
        or bound by the alteration or amendment.

      

      Attorneys'
        Fees; Expenses. Grantor agrees to pay upon demand all of Lender's costs and
        expenses, including Lender's attorneys' fees and Lender's legal expenses,
        incurred in connection with the enforcement of this Agreement. Lender may
        hire
        or pay someone else to help enforce this Agreement, and Grantor shall pay
        the
        costs and expenses of such enforcement. Costs and expenses include Lender's
        attorneys' fees and legal expenses whether or not there is a lawsuit, including
        attorneys' fees and legal expenses for bankruptcy proceedings (including
        efforts
        to modify or vacate any automatic stay or injunction), appeals, and any
        anticipated post-judgment collection services. Grantor also shall pay all
        court
        costs and such additional fees as may be directed by the court.

      

      Caption
        Headings. Caption headings in this Agreement are for convenience purposes
        only
        and are not to be used to interpret or define the provisions of this
        Agreement.

      

      Governing
        Law. With respect to procedural matters related to the perfection and
        enforcement of Lender’s rights against the Collateral, this Agreement will be
        governed by federal law applicable to Lender and to the extent not preempted
        by
        federal law, the laws of the State of West Virginia. In all other respects,
        this
        Agreement will be governed by the federal law applicable to Lender and, to
        the
        extent not preempted by federal law, the laws of the Commonwealth of Kentucky
        without regard to its conflicts of law provisions. However, if there ever
        is a
        question about whether any provision of this Agreement is valid or enforceable,
        the provision that is questioned will be governed by whichever state or federal
        law would find the provision to be valid and enforceable. The loan transaction
        that is evidenced by the Note and this Agreement has been applied for,
        considered, approved and made, and all necessary loan documents have been
        accepted by Lender in the Commonwealth of Kentucky. 

      

      Choice
        of
        Venue. If there is a lawsuit, Grantor agrees upon Lender’s request to submit to
        the jurisdiction of the courts of Pike County, Commonwealth of Kentucky.
        

      

      No
        Waiver
        by Lender. Lender shall not be deemed to have waived any rights under this
        Agreement unless such waiver is given in writing and signed by Lender. No
        delay
        or omission on the part of Lender in exercising any right shall operate as
        a
        waiver of such right or any other right. A waiver by Lender of a provision
        of
        this Agreement shall not prejudice or constitute a waiver of Lender's right
        otherwise to demand strict compliance with that provision or any other provision
        of this Agreement. No prior waiver by Lender, nor any course of dealing between
        Lender and Borrower, or between Lender and any Grantor, shall constitute
        a
        waiver of any of Lender's rights or of any of Borrower's or any Grantor's
        obligations as to any future transactions. Whenever the consent of Lender
        is
        required under this Agreement, the granting of such consent by Lender in
        any
        instance shall not constitute continuing consent to subsequent instances
        where
        such consent is required and in all cases such consent may be granted or
        withheld in the sole discretion of Lender.

      

      Notices.
        Any notice required to be given under this Agreement shall be given in writing,
        and shall be effective when actually delivered, when actually received by
        telefacsimile (unless otherwise required by law), when deposited with a
        nationally recognized overnight courier, or, if mailed when deposited in
        the
        United States mail, as first class, certified or registered mail postage
        prepaid, directed to the addresses shown near the beginning of this Agreement.
        Any party may change its address for notices under this Agreement by giving
        formal written notice to the other parties, specifying that the purpose of
        the
        notice is to change the party's address. For notice purposes, Grantor agrees
        to
        keep Lender informed at all times of Grantor's current address. Unless otherwise
        provided or required by law, if there is more than one Grantor, any notice
        given
        by Lender to any Grantor is deemed to be notice given to all
        Grantors.

      

      Power
        of
        Attorney. Grantor hereby appoints Lender as Grantor's irrevocable
        attorney-in-fact for the purpose of executing any documents necessary to
        perfect, amend, or to continue the security interest granted in this Agreement
        or to demand termination of filings of other secured parties. Lender may
        at any
        time, and without further authorization from Grantor, file a carbon,
        photographic or other reproduction of any financing statement or of this
        Agreement for use as a financing statement. Grantor will reimburse Lender
        for
        all expenses for the perfection and the continuation of the perfection of
        Lender's security interest in the Collateral.

      

      Severability.
        If a court of competent jurisdiction finds any provision of this Agreement
        to be
        illegal, invalid, or unenforceable as to any circumstance, that finding shall
        not make the offending provision illegal, invalid, or unenforceable as to
        any
        other circumstance. If feasible, the offending provision shall be considered
        modified so that it becomes legal, valid and enforceable. If the offending
        provision cannot be so modified, it shall be considered deleted from this
        Agreement. Unless otherwise required by law, the illegality, invalidity,
        or
        unenforceability of any provision of this Agreement shall not affect the
        legality, validity or enforceability of any other provision of this
        Agreement.

      

      Successors
        and Assigns. Subject to any limitations stated in this Agreement on transfer
        of
        Grantor's interest, this Agreement shall be binding upon and inure to the
        benefit of the parties, their successors and assigns. If ownership of the
        Collateral becomes vested in a person other than Grantor, Lender, without
        notice
        to Grantor, may deal with Grantor's successors with reference to this Agreement
        and the Indebtedness by way of forbearance or extension without releasing
        Grantor from the obligations of this Agreement or liability under the
        Indebtedness.

      

      Survival
        of Representations and Warranties. All representations, warranties, and
        agreements made by Grantor in this Agreement shall survive the execution
        and
        delivery of this Agreement, shall be continuing in nature, and shall remain
        in
        full force and effect until such time as Grantor's Indebtedness shall be
        paid in
        full.

      

      Time
        is
        of the Essence. Time is of the essence in the performance of this
        Agreement.

      

      DEFINITIONS.
        The following capitalized words and terms shall have the following meanings
        when
        used in this Agreement. Unless specifically stated to the contrary, all
        references to dollar amounts shall mean amounts in lawful money of the United
        States of America. Words and terms used in the singular shall include the
        plural, and the plural shall include the singular, as the context may require.
        Words and terms not otherwise defined in this Agreement shall have the meanings
        attributed to such terms in the Uniform Commercial Code:

      

      Agreement.
        The word "Agreement" means this Commercial Security Agreement, as this
        Commercial Security Agreement may be amended or modified from time to time,
        together with all exhibits and schedules attached to this Commercial Security
        Agreement from time to time.

      

      Borrower.
        The word "Borrower" means CHAMPION INDUSTRIES, INC. and includes all co-signers
        and co-makers signing the Note and all their successors and
        assigns.

      

      Collateral.
        The word "Collateral" means all of Grantor's right, title and interest in
        and to
        all the Collateral as described in the Collateral Description section of
        this
        Agreement.

      

      Default.
        The word "Default" means the Default set forth in this Agreement in the section
        titled "Default".

      

      Environmental
        Laws. The words "Environmental Laws" mean any and all state, federal and
        local
        statutes, regulations and ordinances relating to the protection of human
        health
        or the environment, including without limitation the Comprehensive Environmental
        Response. Compensation, and Liability Act of 1980, as amended, 42 U.S.C.
        Section
        9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act
        of
        1986, Pub. L. No. 99-499 ("SARA"). the Hazardous Materials Transportation
        Act,
        49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act,
        42
        U.S.C. Section 6901, et seq., or other applicable state or federal laws,
        rules
        or regulations adopted pursuant thereto.

      

      Event
        of
        Default. The words "Event of Default" mean any of the events of default set
        forth in this Agreement in the default section of this Agreement.

      

      Grantor.
        The word "Grantor" means CHAMPION INDUSTRIES. INC.

      

      Guaranty.
        The word "Guaranty" means the guaranty from guarantor, endorser, surety,
        or
        accommodation party to lender, including without limitation a guaranty of
        all or
        part of the Note.

      

      Hazardous
        Substances. The words "Hazardous Substances" mean materials that, because
        of
        their quantity, concentration or physical, chemical or infectious
        characteristics, may cause or pose a present or potential hazard to human
        health
        or the environment when improperly used, treated, stored, disposed of generated,
        manufactured, transported or otherwise handled. The words "Hazardous Substances"
        are used in their very broadest sense and include without limitation any
        and all
        hazardous or toxic substances, materials or waste as defined by or listed
        under
        the Environmental laws. The term "Hazardous Substances" also includes, without
        limitation, petroleum and petroleum by-products or any fraction thereof and
        asbestos.

      

      Indebtedness.
        The word "Indebtedness" means the indebtedness evidenced by the Note or Related
        Documents, including all principal and interest together with all other
        indebtedness and costs and expenses for which Grantor is responsible under
        this
        Agreement or under any of the Related Documents.

      

      Lender.
        The word "Lender" means COMMUNITY TRUST BANK, INC., its successors and
        assigns.

      

      Note.
        The
        word "Note" means the Note executed by CHAMPION INDUSTRIES INC in the principal
        amount of $1,200,000.00 dated July 28, 2006, together with all renewals of
        extensions of, modifications of, refinancings of, consolidations of, and
        substitutions for the note or credit agreement.

      

      Property.
        The word "Property" means all of Grantor's right, title and interest in and
        to
        all the Property as described in the "Collateral Description" section of
        this
        Agreement.

      

      Related
        Documents. The words "Related Documents" mean all promissory notes, credit
        agreements, loan agreements, environmental agreements, guaranties, security
        agreements, mortgages, deeds of trust, security deeds, collateral mortgages,
        and
        all other instruments, agreements and documents, whether now or hereafter
        existing, executed in connection with the Indebtedness.

      

      GRANTOR
        HAS READ AND UNDERSTOOD All THE PROVISIONS OF THIS COMMERCIAL SECURITY AGREEMENT
        AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED JULY 28, 2006.

      GRANTOR:

      

      CHAMPION
        INDUSTRIES, INC.

      

      

      By:
        /s/ Toney K. Adkins

      TONEY
        K.
        ADKINS, PRESIDENT OF CHAMPION

      INDUSTRIES,
        INC. 

      

      

      LENDER:

      

      COMMUNITY
        TRUST BANK, INC. 

      

      

      X__________________________________________

      AUTHORIZED
        SIGNER

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      BUSINESS
        LOAN AGREEMENT

      
        	
                Principal

                $1,200,000.00

              	
                Loan
                  Date

                07-28-2006

              	
                Maturity

                07-28-2011

              	
                Loan
                  No.

                6010040275500005

              	
                Call
                  / Coll

                25

              	
                Account

              	
                Officer

                906

              	
                Initials

              

      

      References
        in the shaded area are for Lender's use only and do not limit the applicability
        of this document to any particular loan or item. Any item above containing
        "'***" has been omitted due to text length limitations.

      

       

      Borrower:
        CHAMPION INDUSTRIES, INC. (TIN: 55-0717455) Lender: COMMUNITY
        TRUST BANK, INC.

      P.O.
        BOX
        2968      COMMERCIAL
        LENDING (PIKEVILLE MAIN)

      HUNTINGTON.
        WV 25728-2968    346
        NORTH
        MAYO TRAIL

      P.O.
        BOX
        2947

      PIKEVILLE,
        KY 41502-2947

      

      

      THIS
        BUSINESS LOAN AGREEMENT dated July 28,2006, is made and executed between
        CHAMPION INDUSTRIES, INC. ("Borrower") and COMMUNITY TRUST BANK, INC. ("Lender")
        on the following terms and conditions. Borrower has received prior commercial
        Loans from Lender or has applied to Lender for a commercial Loan or Loans
        or
        other financial accommodations, including those which may be described on
        any
        exhibit or schedule attached to this Agreement ("Loan"). Borrower understands
        and agrees that: (A) in granting, renewing. or extending any Loan, Lender
        is
        relying upon Borrower's representations, warranties, and agreements as set
        forth
        in this Agreement; (B) the granting, renewing, or extending of any Loan by
        Lender at all times shall be subject to Lender's sole judgment and discretion;
        and (C) all such Loans shall be and remain subject to the terms and conditions
        of this Agreement.

      

      TERM.
        This Agreement shall be effective as of July 28, 2006, and shall continue
        in
        full force and effect until such time as all of Borrower's Loans in favor
        of
        Lender have been paid in full, including principal, interest, costs, expenses,
        attorneys' fees, and other fees and charges, or until July 28, 2011.

      

      CONDITIONS
        PRECEDENT TO EACH ADVANCE. Lender's obligation to make the initial Advance
        and
        each subsequent Advance under this Agreement shall be subject to the fulfillment
        to Lender's satisfaction of all of the conditions set forth in this Agreement
        and in the Related Documents.

      

      Loan
        Documents. Borrower shall provide to Lender the following documents for the
        Loan: (1) the Note; (2) Security Agreements granting to Lender security
        interests in the Collateral; (3) financing statements and all other documents
        perfecting Lender's Security Interests; (4) evidence of insurance as required
        below; (5) together with all such Related Documents as Lender may require
        for
        the Loan; all in form and substance satisfactory to Lender and Lender's
        counsel.

      

      Borrower's
        Authorization. Borrower shall have provided in form and substance satisfactory
        to Lender properly certified resolutions, duly authorizing the execution
        and
        delivery of this Agreement, the Note and the Related Documents. In addition,
        Borrower shall have provided such other resolutions, authorizations, documents
        and instruments as Lender or its counsel, may require.

      

      Payment
        of Fees and Expenses. Borrower shall have paid to Lender all fees, charges,
        and
        other expenses which are then due and payable as specified in this Agreement
        or
        any Related Document.

      

      Representations
        and Warranties. The representations and warranties set forth in this Agreement,
        in the Related Documents, and in any document or certificate delivered to
        Lender
        under this Agreement are true and correct.

      

      No
        Event
        of Default. There shall not exist at the time of any Advance a condition
        which
        would constitute an Event of Default under this Agreement or under any Related
        Document.

      

      REPRESENTATIONS
        AND WARRANTIES. Borrower represents and warrants to Lender, as of the date
        of
        this Agreement, as of the date of each disbursement of Loan proceeds, as
        of the
        date of any renewal, extension or modification of any Loan and at all times
        any
        Indebtedness exists:

      

      Organization.
        Borrower is a corporation for profit which is, and at all times shall be,
        duly
        organized, validly existing, and in good standing under and by virtue of
        the
        laws of the State of West Virginia. Borrower is duly authorized to transact
        business in all other states in which Borrower is doing business, having
        obtained all necessary filings, governmental licenses and approvals for each
        state in which Borrower is doing business. Specifically, Borrower is, and
        at all
        times shall be, duly qualified as a foreign corporation in all states in
        which
        the failure to so qualify would have a material adverse effect on its business
        or financial condition. Borrower has the full power and authority to own
        its
        properties and to transact the business in which it is presently engaged
        or
        presently proposes to engage. Borrower maintains its principal office at
        2450-90
        FIRST AVENUE, HUNTINGTON, WV 25703. Unless Borrower has designated otherwise
        in
        writing, this is the principal office at which Borrower keeps its books and
        records including its records concerning the Collateral. Borrower will notify
        Lender prior to any change in the location of Borrower's state of organization
        or any change in Borrower's name. Borrower shall do all things necessary
        to
        preserve and to keep in full force and effect its existence, rights and
        privileges, and shall comply with all regulations, rules, ordinances, statutes,
        orders and decrees of any governmental or quasi-governmental authority or
        court
        applicable to Borrower and Borrower's business activities.

      

      Assumed
        Business Names. Borrower has filed or recorded all documents or filings required
        by law relating to all assumed business names used by Borrower. Excluding
        the
        name of Borrower, the following is a complete list of all assumed business
        names
        under which Borrower does business: None.

      

      Authorization.
        Borrower's execution, delivery, and performance of this Agreement and all
        the
        Related Documents have been duly authorized by all necessary action by Borrower
        and do not conflict with, result in a violation of, or constitute a default
        under (1) any provision of (a) Borrower's articles of incorporation or
        organization, or bylaws, or (b) any agreement or other instrument binding
        upon
        Borrower or (2) any law, governmental regulation, court decree, or order
        applicable to Borrower or to Borrower's properties.

      

      Financial
        Information. Each of Borrower's financial statements supplied to Lender truly
        and completely disclosed Borrower's financial condition as of the date of
        the
        statement, and there has been no material adverse change in Borrower's financial
        condition subsequent to the date of the most recent financial statement supplied
        to Lender. Borrower has no material contingent obligations except as disclosed
        in such financial statements.

      

      Legal
        Effect. This Agreement constitutes, and any instrument or agreement Borrower
        is
        required to give under this Agreement when delivered will constitute legal,
        valid, and binding obligations of Borrower enforceable against Borrower in
        accordance with their respective terms.

      

      Properties.
        Except as contemplated by this Agreement or as previously disclosed in
        Borrower's financial statements or in writing to Lender and as accepted by
        Lender, and except for property tax liens for taxes not presently due and
        payable, Borrower owns and has good title to all of Borrower's properties
        free
        and clear of all Security Interests, and has not executed any security documents
        or financing statements relating to such properties. All of Borrower's
        properties are titled in Borrower's legal name, and Borrower has not used
        or
        filed a financing statement under any other name for at least the last five
        (5)
        years.

      

      Hazardous
        Substances. Except as disclosed to and acknowledged by Lender in writing,
        Borrower represents and warrants that: (1) During the period of Borrower's
        ownership of the Collateral, there has been no use, generation, manufacture,
        storage, treatment, disposal, release or threatened release of any Hazardous
        Substance by any person on, under, about or from any of the Collateral. (2)
        Borrower has no knowledge of, or reason to believe that there has been (a)
        any
        breach or violation of any Environmental laws; (b) any use, generation,
        manufacture, storage, treatment, disposal, release or threatened release
        of any
        Hazardous Substance on, under, about or from the Collateral by any prior
        owners
        or occupants of any of the Collateral; or (c) any actual or threatened
        litigation or claims of any kind by any person relating to such matters.
        (3)
        Neither Borrower nor any tenant, contractor, agent or other authorized user
        of
        any of the Collateral shall use, generate, manufacture, store, treat, dispose
        of
        or release any Hazardous Substance on, under, about or from any of the
        Collateral; and any such activity shall be conducted in compliance with all
        applicable federal, state, and local laws, regulations, and ordinances,
        including without limitation all Environmental laws. Borrower authorizes
        Lender
        and its agents to enter upon the Collateral to make such inspections and
        tests
        as Lender may deem appropriate to determine compliance of the Collateral
        with
        this section of the Agreement. Any inspections or tests made by Lender shall
        be
        at Borrower's expense and for Lender's purposes only and shall not be construed
        to create any responsibility or liability on the part of Lender to Borrower
        or
        to any other person. The representations and warranties contained herein
        are
        based on Borrower's due diligence in investigating the Collateral for hazardous
        waste and Hazardous Substances. Borrower hereby (1) releases and waives any
        future claims against Lender for indemnity or contribution in the event Borrower
        becomes liable for cleanup or other costs under any such laws, and (2) agrees
        to
        indemnify and hold harmless Lender against any and all claims, losses,
        liabilities, damages, penalties, and expenses which Lender may directly or
        indirectly sustain or suffer resulting from a breach of this section of the
        Agreement or as a consequence of any use, generation, manufacture, storage,
        disposal, release or threatened release of a hazardous waste or substance
        on the
        Collateral. The provisions of this section of the Agreement, including the
        obligation to indemnify, shall survive the payment of the Indebtedness and
        the
        termination, expiration or satisfaction of this Agreement and shall not be
        affected by Lender's acquisition of any interest in any of the Collateral,
        whether by foreclosure or otherwise.

      

      Litigation
        and Claims. No litigation, claim, investigation, administrative proceeding
        or
        similar action (including those for unpaid taxes) against Borrower is pending
        or
        threatened, and no other event has occurred which may materially adversely
        affect Borrower's financial condition or properties, other than litigation,
        claims, or other events, if any, that have been disclosed to and acknowledged
        by
        Lender in writing.

      

      Taxes.
        To
        the best of the Borrower’s knowledge, all of Borrower’s tax returns and reports
        that are or were required to be filed, have been filed, and all taxes,
        assessments and other governmental charges have been paid in full, except
        those
        presently being or to be contested by Borrower in good faith in the ordinary
        course of business and for which adequate reserves have been
        provided.

      

      Lien
        Priority. Unless otherwise previously disclosed to Lender in writing, Borrower
        has not entered into or granted any Security Agreements, or permitted the
        filing
        or attachment of any Security Interests on or affecting any of the Collateral
        directly or indirectly securing repayment of Borrower’s Loan and Note, that
        would be prior or that may in any way be superior to Lender’s Security Interests
        and rights in and to such Collateral.

      

      Binding
        Effect. This Agreement, the Note, all Security Agreements (if any), and all
        Related Documents are binding upon the signers thereof, as well as upon their
        successors, representatives and assigns, and are legally enforceable in
        accordance with their respective terms.

      

      AFFIRMATIVE
        COVENANTS. Borrower covenants and agrees with Lender that, so long as this
        Agreement remains in effect, Borrower will:

      

      Notices
        of Claims and Litigation. Promptly inform Lender in writing of (1) all material
        adverse changes in Borrower's financial condition, and (2) all existing and
        all
        threatened litigation, claims, investigations, administrative proceedings
        or
        similar actions affecting Borrower or any Guarantor which could materially
        affect the financial condition of Borrower or the financial condition of
        any
        Guarantor.

      

      Financial
        Records. Maintain its books and records in accordance with GAAP, applied
        on a
        consistent basis, and permit Lender to examine and audit Borrower's books
        and
        records at all reasonable times.

      

      Financial
        Statements. Furnish Lender with the following:

      

      Annual
        Statements. As soon as available, but in no event later than one-hundred-twenty
        (120) days after the end of each fiscal year, Borrower's balance sheet and
        income statement for the year ended, compiled by a certified public accountant
        satisfactory to Lender.

      

      Tax
        Returns. As soon as available, but in no event later than one-hundred-twenty
        (120) days after the applicable filing date for the tax reporting period
        ended,
        Federal and other governmental tax returns, prepared by a certified public
        accountant satisfactory to Lender.

      

      All
        financial reports required to be provided under this Agreement shall be prepared
        in accordance with GAAP, applied on a consistent basis, and certified by
        Borrower as being true and correct.

      

      Additional
        Information. Furnish such additional information and statements, as Lender
        may
        request from time to time.

      

      Insurance.
        Maintain fire and other risk insurance, public liability insurance, and such
        other insurance as Lender may require with respect to Borrower's properties
        and
        operations, in form, amounts, coverages and with insurance companies acceptable
        to Lender. Borrower, upon request of Lender, will deliver to Lender from
        time to
        time the policies or certificates of insurance in form satisfactory to Lender,
        including stipulations that coverages will not be cancelled or diminished
        without at least thirty (30) days prior written notice to Lender. Each insurance
        policy also shall include an endorsement providing that coverage in favor
        of
        Lender will not be impaired in any way by any act, omission or default of
        Borrower or any other person. In connection with all policies covering assets
        in
        which Lender holds or is offered a security interest for the Loans, Borrower
        will provide Lender with such Lender's loss payable or other endorsements
        as
        Lender may require.

      

      Insurance
        Reports. Furnish to Lender, upon request of Lender, reports on each existing
        insurance policy showing such information as Lender may reasonably request,
        including without limitation the following: (1) the name of the insurer;
        (2) the
        risks insured; (3) the amount of the policy; (4) the properties insured;
        (5) the
        then current property values on the basis of which insurance has been obtained,
        and the manner of determining those values; and (6) the expiration date of
        the
        policy. In addition, upon request of Lender (however not more often than
        annually). Borrower will have an independent appraiser satisfactory to Lender
        determine, as applicable, the actual cash value or replacement cost of any
        Collateral. The cost of such appraisal shall be paid by Borrower.

      

      Other
        Agreements. Comply with all terms and conditions of all other agreements,
        whether now or hereafter existing, between Borrower and any other party and
        notify Lender immediately in writing of any default in connection with any
        other
        such agreements.

      

      Loan
        Proceeds. Use all Loan proceeds solely for Borrower's business operations,
        unless specifically consented to the contrary by Lender in writing.

      

      Taxes,
        Charges and Liens. Pay and discharge when due all of its indebtedness and
        obligations, including without limitation all assessments, taxes, governmental
        charges, levies and liens, of every kind and nature, imposed upon Borrower
        or
        its properties, income, or profits, prior to the date on which penalties
        would
        attach, and all lawful claims that, if unpaid, might become a lien or charge
        upon any of Borrower's properties, income, or profits.

      

      Performance.
        Perform and comply, in a timely manner, with all terms, conditions, and
        provisions set forth in this Agreement, in the Related Documents, and in
        all
        other instruments and agreements between Borrower and Lender. Borrower shall
        notify Lender immediately in writing of any default in connection with any
        agreement.

      

      Operations.
        Maintain executive and management personnel with substantially the same
        qualifications and experience as the present executive and management personnel;
        provide written notice to Lender of any change in executive and management
        personnel; conduct its business affairs in a reasonable and prudent
        manner.

      

      Environmental
        Studies. Promptly conduct and complete, at Borrower's expense, all such
        investigations, studies, samplings and testings as may be requested by Lender
        or
        any governmental authority relative to any substance, or any waste or by-product
        of any substance defined as toxic or a hazardous substance under applicable
        federal, state, or local law, rule, regulation, order or directive, at or
        affecting any property or any facility owned, leased or used by
        Borrower.

      

      Compliance
        with Governmental Requirements. Comply with all laws, ordinances, and
        regulations, now or hereafter in effect, of all governmental authorities
        applicable to the conduct of Borrower's properties, businesses and operations,
        and to the use or occupancy of the Collateral, including without limitation,
        the
        Americans With Disabilities Act. Borrower may contest in good faith any such
        law, ordinance, or regulation and withhold compliance during any proceeding,
        including appropriate appeals, so long as Borrower has notified Lender in
        writing prior to doing so and so long as, in Lender's sole opinion, Lender's
        interests in the Collateral are not jeopardized. Lender may require Borrower
        to
        post adequate security or a surety bond, reasonably satisfactory to Lender,
        to
        protect Lender's interest.

      

      Inspection.
        Permit employees or agents of Lender at any reasonable time to inspect any
        and
        all Collateral for the Loan or Loans and Borrower's other properties and
        to
        examine or audit Borrower's books, accounts, and records and to make copies
        and
        memoranda of Borrower's books, accounts, and records. If Borrower now or
        at any
        time hereafter maintains any records (including without limitation computer
        generated records and computer software programs for the generation of such
        records) in the possession of a third party, Borrower, upon request of Lender,
        shall notify such party to permit Lender free access to such records at all
        reasonable times and to provide Lender with copies of any records it may
        request, all at Borrower's expense.

      

      Compliance
        Certificates. Unless waived in writing by Lender, provide Lender at least
        annually, with a certificate executed by Borrower’s chide financial officer, or
        other officer or person acceptable to Lender, certifying that the
        representations and warranties set forth in this Agreement are true and correct
        as of the date of the certificate and further certifying that, as of the
        date of
        the certificate, no Event of Default exists under this Agreement.

      

      Environmental
        Compliance and Reports. Borrower shall comply in all respects with any and
        all
        Environmental laws; not cause or permit to exist, as a result of an intentional
        or unintentional action or omission on Borrower's part or on the part of
        any
        third party, on property owned and/or occupied by Borrower, any environmental
        activity where damage may result to the environment, unless such environmental
        activity is pursuant to and in compliance with the conditions of a permit
        issued
        by the appropriate federal, state or local governmental authorities; shall
        furnish to Lender promptly and in any event within thirty (30) days after
        receipt thereof a copy of any notice, summons, lien, citation, directive,
        letter
        or other communication from any governmental agency or instrumentality
        concerning any intentional or unintentional action or omission on Borrower's
        part in connection with any environmental activity whether or not there is
        damage to the environment and/or other natural resources.

      

      Additional
        Assurances. Make, execute and deliver to Lender such promissory notes,
        mortgages, deeds of trust, security agreements, assignments, financing
        statements, instruments, documents and other agreements as Lender or its
        attorneys may reasonably request to evidence and secure the Loans and to
        perfect
        all Security Interests.

      

      LENDER'S
        EXPENDITURES. If any action or proceeding is commenced that would materially
        affect Lender's interest in the Collateral or if Borrower fails to comply
        with
        any provision of this Agreement or any Related Documents, including but not
        limited to Borrower's failure to discharge or pay when due any amounts Borrower
        is required to discharge or pay under this Agreement or any Related Documents,
        Lender on Borrower's behalf may (but shall not be obligated to) take any
        action
        that Lender deems appropriate, including but not limited to discharging or
        paying all taxes, liens, security interests, encumbrances and other claims,
        at
        any time levied or placed on any Collateral and paying all costs for insuring,
        maintaining and preserving any Collateral. All such expenditures incurred
        or
        paid by Lender for such purposes will then bear interest at the rate charged
        under the Note from the date incurred or paid by Lender to the date of repayment
        by Borrower. All such expenses will become a part of the indebtedness and,
        at
        Lender's option, will (A) be payable on demand; (B) be added to the balance
        of
        the Note and be apportioned among and be payable with any installment payments
        to become due during either (1) the term of any applicable insurance policy;
        or
        (2) the remaining term of the Note; or (C) be treated as a balloon payment
        which
        will be due and payable at the Note's maturity.

          

      NEGATIVE
        COVENANTS. Borrow covenants and agrees with Lender that while this Agreement
        is
        in effect, Borrower shall not, without prior written consent of
        Lender:

      

      Indebtedness
        and Liens. (1) Except for trade debt incurred in the normal course of business
        and indebtedness to Lender contemplated by this Agreement, create, incur,
        or
        assume indebtedness for borrowed money, including capital leases, (2) sell,
        transfer, mortgage, assign, pledge, lease, grant a security interest in,
        or
        encumber any of the Borrower’s assets (except as allowed as Permitted Liens), or
        (3) sell with recourse any of Borrower’s accounts, except to
        Lender.

      

      Continuity
        of Operations. (1) Engage in any business activities substantially different
        than those in which Borrower is presently engaged, (2) cease operations,
        liquidate, merge, transfer, acquire or consolidate with any other entity,
        change
        its name, dissolve or transferor sell the Collateral out of the ordinary
        course
        of business, or (3) pay any dividends on Borrower’s stock (other than dividends
        payable in its stock) provided, however, that notwithstanding the foregoing,
        but
        only so long as no Event of Default has occurred and is continuing or would
        result from the payment of dividends, if Borrower is a “Subchapter S
        Corporation” (as defined in the Internal Revenue Code of 1986, as amended),
        Borrower may pay cash dividends on its stock to its shareholders from time
        to
        time in amounts necessary to enable the shareholder to pay income taxes and
        make
        estimated income tax payments to satisfy their liabilities under federal
        and
        state law which arise solely from their status as Shareholders of a Subchapter
        S
        Corporation because of their ownership of share of Borrower’s stock, or purchase
        or retire any of Borrower’s outstanding share or alter or amend Borrower’s
        capital structure.

      

      Loans,
        Acquisitions and Guaranties. (1) Loan, invest in or advance money or assets
        to
        any other person, enterprise or entity, (2) purchase, create or acquire any
        interest in any other enterprise or entity, or (3) incur any obligation as
        surety to guarantor other than in the ordinary course of business.

      

      Agreements.
        Borrower will not enter into any agreement containing any provisions which
        would
        be violated or breached by the performance of Borrower’s obligations under this
        Agreement or in connection herewith.

      

      CESSATION
        OF ADVANCES. If Lender has made any commitment to make any Loan to Borrower,
        whether under this Agreement or under any other agreement, Lender shall have
        no
        obligation to make Loan Advances or to disburse Loan proceeds if: (A) Borrower
        or any Guarantor is in default under the terms of this Agreement or any of
        the
        Related Documents or any other agreement that Borrower or any Guarantor has
        with
        Lender; (B) Borrower or any Guarantor dies, becomes incompetent or becomes
        insolvent, files a petition in bankruptcy or similar proceedings, or is adjudged
        a bankrupt; (C) there occurs a material adverse change in Borrower's financial
        condition, in the financial condition of any Guarantor, or in the value of
        any
        Collateral securing any Loan; or (D) any Guarantor seeks, claims or otherwise
        attempts to limit, modify or revoke such Guarantor's guaranty of the Loan
        or any
        other Loan with Lender; or (E) Lender in good faith deems itself insecure,
        even
        though no Event of Default shall have occurred.

      

      RIGHT
        OF
        SETOFF. To the extent permitted by applicable law, Lender reserves a right
        of
        setoff in all Borrower's accounts with Lender (whether checking, savings,
        or
        some other account). This includes all accounts Borrower holds jointly with
        someone else and all accounts Borrower may open in the future. However, this
        does not include any IRA or Keogh accounts, or any trust accounts for which
        setoff would be prohibited by law. Borrower authorizes Lender, to the extent
        permitted by applicable law, to charge or setoff all sums owing on the
        Indebtedness against any and all such accounts.

      

      DEFAULT.
        Each of the following shall constitute an Event of Default under this
        Agreement:

      

      Payment
        Default. Borrower fails to make any payment when due under the
        Loan.

      

      Other
        Defaults. Borrower fails to comply with or to perform any other term,
        obligation, covenant or condition contained in this Agreement or in any of
        the
        Related Documents or to comply with or to perform any term, obligation, covenant
        or condition contained in any other agreement between Lender and
        Borrower.

      

      Default
        in Favor of Third Parties. Borrower or any Grantor defaults under any Loan,
        extension of credit, security agreement, purchase or sales agreement, or
        any
        other agreement, in favor of any other creditor or person that may materially
        affect any of Borrower's or any Grantor's property or Borrower's or any
        Grantor's ability to repay the Loans or perform their respective obligations
        under this Agreement or any of the Related Documents.

      

      False
        Statements. Any warranty, representation or statement made or furnished to
        Lender by Borrower or on Borrower's behalf under this Agreement or the Related
        Documents is false or misleading in any material respect, either now or at
        the
        time made or furnished or becomes false or misleading at any time
        thereafter.

      

      Insolvency.
        The dissolution or termination of Borrower's existence as a going business,
        the
        insolvency of Borrower, the appointment of a receiver for any part of Borrower's
        property, any assignment for the benefit of creditors, any type of creditor
        workout, or the commencement of any proceeding under any bankruptcy or
        insolvency laws by or against Borrower.

      

      Defective
        Collateralization. This Agreement or any of the Related Documents ceases
        to be
        in full force and effect (including failure of any collateral document to
        create
        a valid and perfected security interest or lien) at any time and for any
        reason.

      

      Creditor
        or Forfeiture Proceedings. Commencement of foreclosure or forfeiture
        proceedings, whether by judicial proceeding, self-help, repossession or any
        other method, by any creditor of Borrower or by any governmental agency against
        any collateral securing the Loan. This includes a garnishment of any of
        Borrower's accounts, including deposit accounts, with Lender. However, this
        Event of Default shall not apply if there is a good faith dispute by Borrower
        as
        to the validity or reasonableness of the claim which is the basis of the
        creditor or forfeiture proceeding and if Borrower gives Lender written notice
        of
        the creditor or forfeiture proceeding and deposits with Lender monies or
        a
        surety bond for the creditor or forfeiture proceeding, in an amount determined
        by Lender, in its sole discretion, as being an adequate reserve or bond for
        the
        dispute.

      

      Events
        Affecting Guarantor. Any of the preceding events occurs with respect to any
        Guarantor of any of the Indebtedness or any Guarantor dies or becomes
        incompetent, or revokes or disputes the validity of, or liability under,
        any
        Guaranty of the Indebtedness. In the event of a death, Lender, at its option,
        may, but shall not be required to, permit the Guarantor's estate to assume
        unconditionally the obligations arising under the guaranty in a manner
        satisfactory to Lender, and, in doing so, cure any Event of
        Default.

      

      Change
        in
        Ownership. Any change in ownership of twenty-five percent (25%) or more of
        the
        common stock of Borrower.

      

      Adverse
        Change. A material adverse change occurs in Borrower's financial condition,
        or
        Lender believes the prospect of payment or performance of the Loan is
        impaired.

      

      Insecurity.
        Lender in good faith believes itself insecure.

      

      Right
        to
        Cure. If any default, other than a default on Indebtedness, is curable and
        if
        Borrower or Grantor, as the case may be, has not been given a notice of a
        similar default within the preceding twelve (12) months, it may be cured
        if
        Borrower or Grantor, as the case may be, after receiving written notice from
        Lender demanding cure of such default: (1) cure the default within ten (10)
        days; or (2) if the cure requires more than ten (10) days, immediately initiate
        steps which Lender deems in Lender's sole discretion to be sufficient to
        cure
        the default and thereafter continue and complete all reasonable and necessary
        steps sufficient to produce compliance as soon as reasonably
        practical.

      

      EFFECT
        OF
        AN EVENT OF DEFAULT. If any Event of Default shall occur, except where otherwise
        provided in this Agreement or the Related Documents, all commitments and
        obligations of Lender under this Agreement or the Related Documents or any
        other
        agreement immediately will terminate (including any obligation to make further
        Loan Advances or disbursements), and, at Lender's option, all Indebtedness
        immediately will become due and payable, all without notice of any kind to
        Borrower, except that in the case of an Event of Default of the type described
        in the "Insolvency" subsection above, such acceleration shall be automatic
        and
        not optional. In addition, Lender shall have all the rights and remedies
        provided in the Related Documents or available at law, in equity, or otherwise.
        Except as may be prohibited by applicable law, all of Lender's rights and
        remedies shall be cumulative and may be exercised singularly or concurrently.
        Election by Lender to pursue any remedy shall not exclude pursuit of any
        other
        remedy, and an election to make expenditures or to take action to perform
        an
        obligation of Borrower or of any Grantor shall not affect Lender's right
        to
        declare a default and to exercise its rights and remedies.

      

      MISCELLANEOUS
        PROVISIONS. The following miscellaneous provisions are a part of this
        Agreement:

          

      Amendments.
        This Agreement, together with any Related Documents, constitutes the entire
        understanding and agreement of the parties as to the matters set forth in
        this
        Agreement. No alteration of or amendment to this Agreement shall be effective
        unless given in writing and signed by the party or parties sought to be charged
        or bound by the alteration or amendment.

      

      Attorneys'
        Fees; Expenses. Borrower agrees to pay upon demand all of Lender's costs
        and
        expenses, including Lender's attorneys' fees and Lender's legal expenses,
        incurred in connection with the enforcement of this Agreement. Lender may
        hire
        or pay someone else to help enforce this Agreement, and Borrower shall pay
        the
        costs and expenses of such enforcement. Costs and expenses include Lender's
        attorneys' fees and legal expenses whether or not there is a lawsuit, including
        attorneys' fees and legal expenses for bankruptcy proceedings (including
        efforts
        to modify or vacate any automatic stay or injunction), appeals, and any
        anticipated post-judgment collection services. Borrower also shall pay all
        court
        costs and such additional fees as may be directed by the court.

      

      Caption
        Headings. Caption headings in this Agreement are for convenience purposes
        only
        and are not to be used to interpret or define the provisions of this
        Agreement.

      

      Consent
        to Loan Participation. Borrower agrees and consents to Lender's sale or
        transfer, whether now or later, of one or more participation interests in
        the
        Loan to one or more purchasers, whether related or unrelated to Lender. Lender
        may provide, without any imitation whatsoever, to anyone or more purchasers,
        or
        potential purchasers, any information or knowledge Lender may have about
        Borrower or about any other matter relating to the Loan, and Borrower hereby
        waives any rights to privacy Borrower may have with respect to such matters.
        Borrower additionally waives any and all notices of sale of participation
        interests, as well as all notices of any repurchase of such participation
        interests. Borrower also agrees that the purchasers of any such participation
        interests will be considered as the absolute owners of such interests in
        the
        Loan and will have all the rights granted under the participation agreement
        or
        agreements governing the sale of such participation interests. Borrower further
        waives all rights of offset or counterclaim that it may have now or later
        against Lender or against any purchaser of such a participation interest
        and
        unconditionally agrees that either Lender or such purchaser may enforce
        Borrower's obligation under the Loan irrespective of the failure or insolvency
        of any holder of any interest in the Loan. Borrower further agrees that the
        purchaser of any such participation interests may enforce its interests
        irrespective of any personal claims or defenses that Borrower may have against
        Lender.

      

      Governing
        Law. This Agreement will be governed by federal law applicable to Lender
        and, to
        the extent not preempted by federal law, the laws of the Commonwealth of
        Kentucky without regard to its conflicts of law provisions. This Agreement
        has
        been accepted by Lender in the Commonwealth of Kentucky.

      

      Choice
        of
        Venue. If there is a lawsuit, Borrower agrees upon Lender’s request to submit
        tot he jurisdiction of the courts of Pike County, Commonwealth of
        Kentucky.

      

      No
        Waiver
        by Lender. Lender shall not be deemed to have waived any rights under this
        Agreement unless such waiver is given in writing and signed by Lender. No
        delay
        or omission on the part of Lender in exercising any right shall operate as
        a
        waiver of such right or any other right. A waiver by Lender of a provision
        of
        this Agreement shall not prejudice or constitute a waiver of Lender's right
        otherwise to demand strict compliance with that provision or any other provision
        of this Agreement. No prior waiver by Lender, nor any course of dealing between
        Lender and Borrower, or between Lender and any Grantor, shall constitute
        a
        waiver of any of Lender's rights or of any of Borrower's or any Grantor's
        obligations as to any future transactions. Whenever the consent of Lender
        is
        required under this Agreement, the granting of such consent by Lender in
        any
        instance shall not constitute continuing consent to subsequent instances
        where
        such consent is required and in all cases such consent may be granted or
        withheld in the sole discretion of Lender.

      

      Notices.
        Any notice required to be given under this Agreement shall be given in writing,
        and shall be effective when actually delivered, when actually received by
        telefacsimile (unless otherwise required by law), when deposited with a
        nationally recognized overnight courier, or, if mailed, when deposited in
        the
        United States mail, as first class, certified or registered mail postage
        prepaid, directed to the addresses shown near the beginning of this Agreement.
        Any party may change its address for notices under this Agreement by giving
        formal written notice to the other parties, specifying that the purpose of
        the
        notice is to change the party's address. For notice purposes, Borrower agrees
        to
        keep Lender informed at all times of Borrower's current address. Unless
        otherwise provided or required by law, if there is more than one Borrower,
        any
        notice given by Lender to any Borrower is deemed to be notice given to all
        Borrowers.

      

      Severability.
        If a court of competent jurisdiction finds any provision of this Agreement
        to be
        illegal, invalid, or unenforceable as to any circumstance, that finding shall
        not make the offending provision illegal, invalid, or unenforceable as to
        any
        other circumstance. If feasible, the offending provision shall be considered
        modified so that it becomes legal, valid and enforceable. If the offending
        provision cannot be so modified, it shall be considered deleted from this
        Agreement. Unless otherwise required by law, the illegality, invalidity,
        or
        unenforceability of any provision of this Agreement shall not affect the
        legality, validity or enforceability of any other provision of this
        Agreement.

      

      Subsidiaries
        and Affiliates of Borrower. To the extent the context of any provisions of
        this
        Agreement makes it appropriate, including without limitation any representation,
        warranty or covenant, the word "Borrower" as used in this Agreement shall
        include all of Borrower's subsidiaries and affiliates. Notwithstanding the
        foregoing however, under no circumstances shall this Agreement be construed
        to
        require Lender to make any Loan or other financial accommodation to any of
        Borrower's subsidiaries or affiliates.

      

      Successors
        and Assigns. All covenants and agreements by or on behalf of Borrower contained
        in this Agreement or any Related Documents shall bind Borrower's successors
        and
        assigns and shall inure to the benefit of Lender and its successors and assigns.
        Borrower shall not, however, have the right to assign Borrower's rights under
        this Agreement or any interest therein, without the prior written consent
        of
        Lender.

      

      Survival
        of Representations and Warranties. Borrower understands and agrees that in
        making the Loan, Lender is relying on all representations, warranties, and
        covenants made by Borrower in this Agreement or in any certificate or other
        instrument delivered by Borrower to Lender under this Agreement or the Related
        Documents. Borrower further agrees that regardless of any investigation made
        by
        Lender, all such representations, warranties and covenants will survive the
        making of the Loan and delivery to Lender of the Related Documents, shall
        be
        continuing in nature, and shall remain in full force and effect until such
        time
        as Borrower's Indebtedness shall be paid in full, or until this Agreement
        shall
        be terminated in the manner provided above, whichever is the last to
        occur.

      

      Time
        is
        of the Essence. Time is of the essence in the performance of this Agreement.
        

      

      Waive
        Jury. All parties to this Agreement hereby waive the right to any jury trial
        in
        any action, proceeding, or counterclaim brought by any party against any
        other
        party.

      

      Advance.
        The word "Advance" means a disbursement of Loan funds made, or to be made,
        to
        Borrower or on Borrower's behalf on a line of credit or multiple advance
        basis
        under the terms and conditions of this Agreement.

      

      Agreement.
        The word" Agreement" means this Business Loan Agreement, as this Business
        Loan
        Agreement may be amended or modified from time to time, together with all
        exhibits and schedules attached to this Business Loan Agreement from time
        to
        time.

      

      Borrower.
        The word "Borrower" means CHAMPION INDUSTRIES, INC. and includes all co-signers
        and co-makers signing the Note and all their successors and
        assigns.

      

      Collateral.
        The word "Collateral" means all property and assets granted as collateral
        security for a Loan, whether real or personal property, whether granted directly
        or indirectly, whether granted now or in the future, and whether granted
        in the
        form of a security interest, mortgage, collateral mortgage, deed of trust,
        assignment, pledge, crop pledge, chattel mortgage, collateral chattel mortgage,
        chattel trust, factor's lien, equipment trust, conditional sale, trust receipt,
        lien, charge, lien or title retention contract, lease or consignment intended
        as
        a security device, or any other security or lien interest whatsoever, whether
        created by law, contract, or otherwise.

      

      Environmental
        Laws. The words "Environmental Laws" mean any and all state, federal and
        local
        statutes, regulations and ordinances relating to the protection of human
        health
        or the environment, including without limitation the Comprehensive Environmental
        Response, Compensation, and Liability Act of 1980, as amended. 42 U.S.C.
        Section
        9601, et seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act
        of
        1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation
        Act.
        49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act,
        42
        U.S.C. Section 6901, et seq., or other applicable state or federal law, rules,
        or regulations adopted pursuant thereto.

      

      Event
        of
        Default. The words "Event of Default" mean any of the events of default set
        forth in this Agreement in the default section of this Agreement.

                    

      GAAP.
        The
        word "GAAP" means generally accepted accounting principles.

      

      Grantor.
        The word "Grantor" means each and all of the persons or entities granting
        a
        Security Interest in any Collateral for the Loan, including without limitation
        all Borrowers granting such a Security Interest.

      

      Guarantor.
        The word "Guarantor" means any guarantor, surety, or accommodation party
        of any
        or all of the Loan.

      

      Guaranty.
        The word "Guaranty" means the guaranty from Guarantor to Lender, including
        without limitation a guaranty of all or part of the Note.

      

      Hazardous
        Substances. The words "Hazardous Substances" mean materials that, because
        of
        their quantity, concentration or physical, chemical or infectious
        characteristics, may cause or pose a present or potential hazard to human
        health
        or the environment when improperly used, treated, stored, disposed of,
        generated, manufactured, transported or otherwise handled. The words "Hazardous
        Substances" are used in their very broadest sense and include without limitation
        any and all hazardous or toxic substances, materials or waste as defined
        by or
        listed under the Environmental Laws. The term "Hazardous Substances" also
        includes, without limitation, petroleum and petroleum by-products or any
        fraction thereof and asbestos.

      

      Indebtedness.
        The word "Indebtedness" means the indebtedness evidenced by the Note or Related
        Documents, including all principal and interest together with all other
        indebtedness and costs and expenses for which Borrower is responsible under
        this
        Agreement or under any of the Related Documents.

      

      Lender.
        The word "Lender" means COMMUNITY TRUST BANK, INC., its successor and assigns.
        

      

      Loan.
        The
        word "Loan" means any and all Loans and financial accommodations from Lender
        to
        Borrower whether now or hereafter existing, and however evidenced, including
        without limitation those Loans and financial accommodations described herein
        or
        described on any exhibit or schedule attached to this Agreement from time
        to
        time.

      

      Note.
        The
        word "Note" means the Note executed by CHAMPION INDUSTRIES,INC. in the principal
        amount of $1,200,000.00 dated July 28, 2006, together with all renewals of,
        extensions of, modifications of, refinancings of, consolidations of, and
        substitutions for the note or credit agreement.

      

      Permitted
        Liens. The words “Permitted Liens” mean (1) liens and security interests
        securing Indebtedness owed by Borrower to Lender; (2) liens for taxes,
        assessments, or similar charges either not yet due or being contested in
        good
        faith; (3) liens of materialmen, mechanics, warehousemen, or carriers, or
        other
        like liens arising in the ordinary course of business and securing obligations
        which are not yet delinquent; (4) purchase money liens or purchase money
        security interests upon or in any property acquired or held by Borrower in
        the
        ordinary course of business to secure indebtedness outstanding on the date
        of
        this Agreement or permitted to be incurred under the paragraph of this Agreement
        titled “Indebtedness and Liens”; (5) liens and security interests which as of
        the date of this Agreement, have been disclosed to and approved by the Lender
        in
        writing; and (6) those liens and security interests which in the aggregate
        constitute an immaterial and insignificant monetary amount with respect to
        the
        net value of Borrower’s assets. 

      

      Related
        Documents. The words "Related Documents" mean all promissory notes, credit
        agreements, Loan agreements, environmental agreements, guaranties, security
        agreements, mortgages, deeds of trust, security deeds, collateral mortgages,
        and
        all other instruments, agreements and documents, whether now or hereafter
        existing, executed in connection with the Loan.

      

      Security
        Agreement. The words "Security Agreement" mean and include without limitation
        any agreements, promises, covenants, arrangements, understandings or other
        agreements, whether created by law, contract, or otherwise, evidencing,
        governing, representing, or creating a. Security Interest.

      

      Security
        Interest. The words "Security Interest" mean, without limitation, any and
        all
        types of collateral security, present and future, whether in the form of
        a lien,
        charge, encumbrance, mortgage, deed of trust, security deed, assignment,
        pledge,
        crop pledge, chattel mortgage, collateral chattel mortgage, chattel trust,
        factor's lien, equipment trust, conditional sale, trust receipt, lien or
        title
        retention contract, lease or consignment intended as a security device, or
        any
        other security or lien interest whatsoever whether created by law, contract,
        or
        otherwise.

      

      BORROWER
        ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT
        AND
        BORROWER AGREES TO ITS TERMS. THIS BUSINESS LOAN AGREEMENT IS DATED JULY
        28,
        2006.

      

      BORROWER:

      

      CHAMPION
        INDUSTRIES, INC.

      

      

      By:
        /s/ Toney K. Adkins

      TONEY
        K.
        ADKINS, PRESIDENT OF CHAMPION

      INDUSTRIES,
        INC. 

      

      LENDER:

      

      COMMUNITY
        TRUST BANK, INC. 

      

      

      X__________________________________________

      AUTHORIZED
        SIGNER

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]