Document:

exhibit10-1.htm

    
      

    

    SEPARATION
      AGREEMENT AND GENERAL RELEASE

    

    This
      Separation Agreement and General
      Release (“Agreement”) by and among DR. QUN YI ZHENG, an individual
      residing  at 6 Foxhill Drive, Wayne, New Jersey 07470 (hereinafter
      referred to as the “Employee”), KENT FINANCIAL SERVICES, INC. and KENT
      INTERNATIONAL HOLDINGS, INC. (formerly known as Cortech, Inc.), their
      affiliates, parent company, predecessors, successors or assigns, and their
      respective officers, including but not limited to Paul O. Koether, directors,
      trustees, representatives, agents and Employees, and any of their subsidiaries,
      and all entities associated or affiliated with Paul Koether, including their
      respective officers, directors, trustees, representatives and Employees
      (hereinafter referred to as the “Company”), and PAUL KOETHER,
      individually.

    

    RECITALS

    

    The
      Employee desires to resign and the
      Company is prepared to offer severance to the Employee,

    

    NOW,
      THEREFORE, the parties agree as
      follows:

    

    1.           As
      of August 31, 2007, the Company agrees to release the Employee from his
      obligations under a certain Employment Agreement dated November 1, 2005,
      attached as Exhibit 1, including but not limited to, the covenant not to compete
      contained in Paragraph 8 of the Employment Agreement.

    

    2.           The
      Employee will continue to have the use of a certain Mercedes Benz automobile,
      leased for him by the Company under Paragraph 3.5 of the Employment Agreement
      including all auto insurance payments, until February 23, 2008.  The
      Employee shall also be permitted to keep his laptop computer and
      printer.

    

    3.           In
      full satisfaction of all other financial obligations or emoluments which may
      be
      or are owed to the Employee under Paragraphs 3, 4, 5 and 6 in the Employment
      Agreement, the Employee agrees to accept the sum of One Hundred Thirty Thousand
      Dollars ($130,000.00), less appropriate state and federal payroll withholdings
      and taxes, in a lump sum, to be paid to the Employee on or before August 31,
      2007.  The Company further agrees to assign to Employee all
      present  contracts with Shering Plough totaling approximately
      $6,000.00.

    

    4.           In
      return for release from Paragraph 8 of the Employment Agreement, retention
      of
      the automobile until February 23, 2008, and the payment recited in Paragraph
      3,
      the Employee agrees that he will resign, effective August 31, 2007, from all
      officer positions and all directorship positions in the Company.

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    5.           The
      Employee hereby releases, gives up, waive, and forever discharges the Company
      from any and all claims or liabilities of whatever kind or nature, that he
      has
      ever had or which he now has, known or unknown, including, but not limited
      to,
      any claim for attorneys’ fees and any claim which could be asserted now or in
      the future under (a) the common law, including, but not limited to theories
      of
      tort or contract (express or implied), defamation, or violation of public
      policy; (b) any policies, practices, or procedures of the Company; (c) any
      federal, state or local law, statute or regulation expressly including, but
      not
      limited to: Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C.
      §621 et seq., Title VII of the Civil Rights Act of 1964, 42 U.S.C. §2000(e)
etseq., The Employee Retirement Income Security Act of 1974, as
      amended, 29 U.S.C. §1001 etseq., the Americans With Disabilities
      Act, 42 U.S.C. §12101 etseq., the New Jersey Law Against
      Discrimination, N.J.S.A. 10:5-1 etseq., the New Jersey
      Conscientious Employee Protection Act, N.J.S.A. 34:19-1, etseq.,
      the New Jersey Family Leave Act, N.J.S.A. 34:11B-1 etseq., the
      Family and Medical Leave Act, 29 U.S.C. §2601 etseq., the Equal
      Pay Act, 29 U.S.C. §206(d) etseq.; the New Jersey Wage Payment
      Law, N.J.S.A. 34:11-4.1 etseq., and/or the New Jersey Wage and
      Hour Law, N.J.S.A. 34:11-56a etseq.; (d) any contract of
      employment, expressed or implied; (e) any provision of the Constitution of
      the
      United States, the State of New Jersey or any other state; (f) any and all
      claims or actions for attorneys’ fees or costs; and (g) any provision of any
      other law, common or statutory, of the United States, New Jersey, or any other
      state.  This Release does not apply to claims that may arise after the
      date this Release is signed, any claim for vested benefits under a benefit
      plan
      maintained by the Company, or claims that cannot be released as a matter of
      law.  In the event that any state or federal administrative agency
      files or processes a charge or action on my behalf, he hereby waives any and
      all
      rights he may have to recover any monies or any other thing of value from any
      proceeding arising from the charge or action.

    

    6.           The
      Company hereby releases, gives up, waives and forever discharges the Employee
      from any and all claims or liabilities of whatever kind or nature that the
      Company has ever had or which it now has, known or unknown, including but not
      limited to, any claim for attorneys’ fees and any claim which could be asserted
      now or in the future.

    

    7.           The
      Employee agrees not to make any defamatory, disparaging, critical or negative
      statements concerning the Company or any of its respective predecessors,
      successors and assigns, as well as its past or present officers, directors,
      agents, representatives or employees, as well as their successors and assigns,
      heirs, executors, and personal or legal representatives, including Paul
      Koether.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    8.           The
      Company agrees not to make any defamatory, disparaging, critical or negative
      statements concerning the Employee.

    

    9.           The
      Company and the Employee are bound by this Agreement.  Anyone who
      succeeds to his rights and responsibilities, such as his heirs or the executor
      of his estate, is also bound.

    

    10.           This
      Agreement contains the sole and the entire agreement between the Employee and
      the Company, and completely and fully supersedes and replaces any and all prior
      contracts, agreements, discussions, representations, negotiations,
      understandings and any other communications between the parties relating to
      the
      subject matter hereof.  He represents and acknowledges, in signing
      this Agreement that he has not relied upon any representation or statement
      not
      set forth in this Agreement made by the Company or its representatives with
      regard to the subject matter of this Agreement.  No other promises or
      agreements will be binding unless in writing, signed by the parties hereto,
      and
      expressly stated to represent an amendment to this Agreement.

    

    11.           BY
      SIGNING THIS AGREEMENT, THE EMPLOYEE STATES
      THAT:  He has the right to consult with
      an attorney of his choice at his expense prior to signing it.  He
      acknowledges that he has carefully read this Agreement, fully understand it
      and
      is signing it voluntarily.  He understands and knows that he is giving
      up important rights, and that he is giving up any such rights or claims in
      exchange for payments to which he is not already entitled.  By signing
      below, he also acknowledges that he was given up to twenty-one (21) days from
      the date he received this Agreement to make up his mind about signing
      it.  If he signs it sooner, it is because he has decided that he
      did not need the additional time.  He understands that he has seven
      (7) days after signing this Agreement and Release to revoke his acceptance
      of
      it.  If he does not advise Paul O. Koether, Kent Financial Services,
      Inc. and Kent International Holdings, Inc., 211 Pennbrook Road, P.O. Box 97,
      Far
      Hills, New Jersey 07931 in writing, within such seven (7) day period of his
      intent to revoke this Agreement, this Agreement will become effective and
      enforceable upon the expiration of the seven (7) days.  Accordingly,
      this Agreement and Release will not become effective or enforceable until the
      seven-day revocation period has expired.

    

    

    
      	
               

            	 	
               

            
	
              Signature
                of
                Witness                           

            	
               Date

            	 	
              Dr.
                Qun Yi
                Zheng                            

            	
                Date

            
	 	 	 	 
	 	 	
              KENT
                FINANCIAL SERVICES, INC.

            	 
	 	 	
              and

            	 
	 	 	
              KENT
                INTERNATIONAL

            	 
	 	 	
              HOLDINGS,
                INC.

            	 

    

    

     

    
      	
              Date:

            	 	 	
              By: 
                

            	 
	 	
                      

            	Paul
              O. Koether
	 	
                     

            	Chairman
              of the Board

    

     

     

    
      	
              Date:

            	 	 	
               

            
	 	
              Paul
                O. Koether, Individually

            

    

     

    3ex10_1.htm

    
      

    

    EXHIBIT
      10.1

    

    

    BIG
      LOTS

    

    SUPPLEMENTAL
      SAVINGS PLAN

    

    

    AMENDED
      AND RESTATED

    

    EFFECTIVE
      AS OF JANUARY 1, 2008

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    BIG
      LOTS

    SUPPLEMENTAL
      SAVINGS PLAN

     

    TABLE
      OF CONTENTS

     

    
      	 	
              Page

            
	 	 
	
              PURPOSE

            	
              4

            
	 	 
	
              CONCEPT

            	
              4

            
	 	
               

            
	
              EFFECTIVE
                DATE

            	
              4

            
	 	 	 	 
	
              ARTICLE
                I

            	 	
              PARTICIPATION

            	
               

            
	 	 	 	 
	 	 	
              Section
                1.1 – Eligibility and Participation

            	
              5

            
	 	 	
              Section
                1.2 – Conditions of Participation

            	
              5

            
	 	 	
              Section
                1.3 – Election to Defer

            	
              5

            
	 	 	
              Section
                1.4 – Matching Employer Contributions

            	
              6

            
	 	 	
              Section
                1.5 – Deferred Accounts

            	
              6

            
	 	 	
              Section
                1.6 – Statement of Accounts

            	
              7

            
	 	 	 	 
	
              ARTICLE
                II

            	 	
              BENEFIT
                DISTRIBUTIONS FROM THE PLAN

            	
               

            
	 	 	 	 
	 	 	
              Section
                2.1 –Time of Distributions

            	
              8

            
	 	 	
              Section
                2.2 –Form of Distributions

            	
              8

            
	 	 	
              Section
                2.3 – Change in Control

            	
              8

            
	 	 	
              Section
                2.4 – Six Month Distribution Delay of Non-Grandfathered
                Amounts

            	
              8

            
	 	 	
              Section
                2.5 – Withholding & Payroll Taxes

            	
              8

            
	 	 	
              Section
                2.6 – Beneficiary Designation

            	
              8

            
	 	 	 	 
	
              ARTICLE
                III

            	 	
              WITHDRAWALS

            	
               

            
	 	 	 	 
	 	 	
              Section
                3.1 – Hardship Withdrawals

            	
              10

            
	 	 	
              Section
                3.2 – Withdrawal Procedures

            	
              10

            
	 	 	 	 
	
              ARTICLE
                IV

            	 	
              COMMITTEE

            	
               

            
	 	 	 	 
	 	 	
              Section
                4.1 – Committee

            	
              11

            
	 	 	
              Section
                4.2 – Committee Procedures

            	
              11

            
	 	 	 	 
	
              ARTICLE
                V

            	 	
              ADMINISTRATION

            	
               

            
	 	 	 	 
	 	 	
              Section
                5.1 – Administrative Powers and Duties

            	
              12

            
	 	 	
              Section
                5.2 – Expenses & Taxes

            	
              12

            
	 	 	
              Section
                5.3 – Records

            	
              12

            
	 	 	
              Section
                5.4 – Determinations

            	
              12

            
	 	 	
              Section
                5.5 – Legal Incompetency

            	
              13

            
	 	 	
              Section
                5.6 – Action by the Employer

            	
              13

            
	 	 	
              Section
                5.7 – Exemption From Liability; Indemnification

            	
              13

            
	 	 	
              Section
                5.8 – Nonalienation of Benefits

            	
              13

            
	 	 	 	 
	
              ARTICLE
                VI

            	 	
              INCLUSION
                AND WITHDRAWAL OF EMPLOYERS

            	
               

            
	 	 	 	 

    

    
      
        	 	 	
                Section
                  6.1 – Inclusion of Employers

              	
                14

              

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	 	 	
              Section
                6.2 – Withdrawal of Employers

            	
              14

            
	 	 	
              Section
                6.3 – Sale or Liquidation of Employers

            	
              14

            
	 	 	
              Section
                6.4 – Transfer Between Participating Employers

            	
              14

            
	 	 	 	 
	
              ARTICLE
                VII

            	 	
              MISCELLANEOUS
                PROVISIONS

            	
               

            
	 	 	 	 
	 	 	
              Section
                7.1 – Employment and Other Rights

            	
              15

            
	 	 	
              Section
                7.2 – Right to Benefits

            	
              15

            
	 	 	
              Section
                7.3 – Offsets to Benefits

            	
              15

            
	 	 	
              Section
                7.4 – Amendment and Termination

            	
              15

            
	 	 	
              Section
                7.5 –Income Inclusion Under Section 409A of the Code

            	
              16

            
	 	 	
              Section
                7.6 – Claims Procedure

            	
              16

            
	 	 	 	 
	
              ARTICLE
                VIII

            	 	
              DEFINITIONS

            	
               

            
	 	 	 	 
	 	 	
              Section
                8.1 – Affiliate

            	
              19

            
	 	 	
              Section
                8.2 – Associate

            	
              19

            
	 	 	
              Section
                8.3 – Base Compensation

            	
              19

            
	 	 	
              Section
                8.4 – Beneficiary

            	
              19

            
	 	 	
              Section
                8.5 – Board

            	
              19

            
	 	 	
              Section
                8.6 – Change in Control

            	
              19

            
	 	 	
              Section
                8.7 – Code

            	
              20

            
	 	 	
              Section
                8.8 – Committee

            	
              20

            
	 	 	
              Section
                8.9 – Company

            	
              20

            
	 	 	
              Section
                8.10 –Compensation

            	
              20

            
	 	 	
              Section
                8.11 – Deferral Agreement

            	
              20

            
	 	 	
              Section
                8.12 – Deferred Account

            	
              20

            
	 	 	
              Section
                8.13 – Employer

            	
              21

            
	 	 	
              Section
                8.14 – ERISA

            	
              21

            
	 	 	
              Section
                8.15 – Fiscal Year Compensation

            	
              21

            
	 	 	
              Section
                8.16 – Grandfathered Amounts

            	
              21

            
	 	 	
              Section
                8.17 – Highly Compensated Employee

            	
              21

            
	 	 	
              Section
                8.18 – Matching Employer Contributions

            	
              21

            
	 	 	
              Section
                8.19 – Non-Grandfathered Amounts

            	
              21

            
	 	 	
              Section
                8.20 – Participant

            	
              21

            
	 	 	
              Section
                8.21 – Performance Bonus

            	
              22

            
	 	 	
              Section
                8.22 – Plan Year

            	
              22

            
	 	 	
              Section
                8.23 – Termination

            	
              22

            
	 	 	
              Section
                8.24 – Unforeseeable Emergency

            	
              22

            
	 	 	 	 
	
              ARTICLE
                IX

            	 	
              GENERAL
                PROVISIONS

            	
               

            
	 	 	 	 
	 	 	
              Section
                9.1 – ERISA Status

            	
              23

            
	 	 	
              Section
                9.2 – Compliance with Section 409A of the Code

            	
              23

            
	 	 	
              Section
                9.3 – Construction

            	
              23

            
	 	 	
              Section
                9.4 – Controlling Law

            	
              23

            
	 	 	
              Section
                9.5 – Effect of Invalidity of Provision

            	
              23

            
	 	 	 	 
	
              ARTICLE
                X

            	 	
              JOINDER
                AGREEMENT & FORMS

            	
              24

            

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    BIG
      LOTS

     

    SUPPLEMENTAL
      SAVINGS PLAN

     

    Purpose

     

    The
      purpose of this nonqualified deferred compensation plan is to promote the
      success of the Company and Affiliates who are participating Employers in the
      Plan (now known as the Big Lots Supplemental Savings Plan), by providing a
      means
      for certain Highly Compensated Employees to defer Compensation.

     

    Concept

     

    The
      Plan
      is designed to provide Participants with a supplemental vehicle through which
      to
      defer Compensation and related Matching Employer Contributions (if applicable)
      in a manner substantially similar to deferrals made pursuant to elections under
      the Company’s tax-qualified 401(k) plan.

     

    The
      Plan
      is intended and designed to coordinate with the Company’s tax-qualified 401(k)
      plan in a manner consistent with the intent of the Company, as described below.
      All contributions deferred under the Plan shall be made without regard to the
      deferrals made with respect to the 401(k) plan and shall be treated as unfunded
      contributions. In no event may any Participant in the Plan defer an aggregate
      amount of Compensation in excess of one hundred percent (100%) of the
      Participant’s total Compensation.

     

    The
      Plan
      is an unfunded, supplemental executive deferred compensation plan structured
      to
      benefit Participants in a manner that provides incentive to improve the
      profitability, competitiveness and growth of the Company and Affiliates who
      are
      participating Employers in the Plan.

     

    Effective
      Date

     

    The
      Plan
      as evidenced by this document shall become effective as of January 1, 2008,
      and
      is an amendment and restatement of the Plan originally effective as of January
      1, 1991, which was subsequently amended and restated on November 16, 1992 and
      again on January 1, 2003, and as may be amended from time to
      time.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    ARTICLE
      I

     

    PARTICIPATION

     

    Section
      1.1 – Eligibility and Participation

     

    Associates
      of an Employer who are considered Highly Compensated Employees shall be eligible
      to participate in the Plan as of the first date of their employment with the
      Employer.  The Committee, in its sole and final discretion, may
      determine which Associates who are eligible to participate in the Plan shall
      become Participants.  Notwithstanding, all Associates who were
      Participants in the Plan as of January 1, 2008 shall continue to participate
      in
      the Plan on and after said date.

     

    Section
      1.2 – Conditions of Participation

     

    An
      Associate shall not become a Participant until he or she completes and returns
      a
      Deferral Agreement to the Committee making such elections as are required by
      such Deferral Agreement within the time limits imposed by the Plan and set
      forth
      in Section 1.3 of the Plan.  By submitting a Deferral Agreement, each
      Participant shall be deemed conclusively, for all purposes, to have assented
      to
      the terms and provisions of the Plan and shall be bound
      thereby.  Certain restrictions shall apply to those Participants who
      constitute “Officers” or “Directors” of the Company within the meaning of
      Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange
      Act”), and attending regulations as adopted and interpreted by the Securities
      and Exchange Commission as they relate to investments (if any) in shares of
      the
      Company.

     

    Section
      1.3 – Election to Defer

     

    
      	
              (a)

            	
              Each
                Participant must submit a completed Deferral Agreement to the Committee
                no
                later than the applicable election date set forth
                below.

            

    

     

    
      	
               

            	
              (i)

            	
              Base
                Compensation.  A Deferral Agreement with respect to any
                Base Compensation for services performed during a Plan Year must
                be
                submitted no later than December 31 preceding the Plan Year in which
                such
                services will be performed.

            

    

     

    
      	
               

            	
              (ii)

            	
              First
                Year of Eligibility.  In the discretion of the
                Committee, during a Plan Year in which an Associate first becomes
                a
                Participant in the Plan, the Deferral Agreement must be submitted
                to the
                Committee no later than thirty (30) days after the date on which
                the
                Associate first becomes a Participant in the Plan.  Such
                Deferral Agreement shall be effective only with respect to Base
                Compensation relating to services performed after the date of such
                election.  For purposes of this Section 1.3(a)(ii), an Associate
                is first eligible to participate in the Plan only if the Associate
                is not
                a participant in any other arrangement of any Employer that would
                be
                treated as a single nonqualified deferred compensation plan along
                with the
                Plan under Treasury Regulation
§1.409A-1(c)(2).

            

    

     

    
      	
               

            	
              (iii)

            	
              Performance
                Bonus.  In the discretion of the Committee, a Deferral
                Agreement with respect to any Performance Bonus must be submitted
                by the
                date that is no later than six (6) months before the end of the
                performance period on which the Performance Bonus is based; provided,
                that
                in no event may an election to defer be made after such Performance
                Bonus
                has become readily ascertainable.

            

    

     

    
      	
               

            	
              (iv)

            	
              Fiscal
                Year Compensation.  In the discretion of the Committee,
                a Deferral Agreement with respect to any Fiscal Year Compensation
                for
                services performed during an Employer’s fiscal year must be submitted no
                later than the last day of the previous fiscal year of the
                Employer.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
              (b)

            	
              For
                each subsequent Plan Year, a Participant may amend his or her existing
                elections by submitting a new Deferral Agreement no later than the
                latest
                date for which an election to defer may be made, as provided in Section
                1.3(a) of the Plan.  An election by a Participant that has not
                been amended pursuant to this Section 1.3(b) shall be deemed to be
                a new
                election for the subsequent Plan
                Year.

            

    

     

    
      	
              (c)

            	
              The
                minimum annual amount that a Participant shall elect to defer under
                the
                Plan for any Plan Year shall not be less than
                $1,000.

            

    

     

    Section
      1.4 – Matching Employer Contributions

     

    Each
      Employer shall cause Matching Employer Contributions to be credited to a
      Participant’s Deferred Account under the Plan, to the extent determined by the
      Board and in an amount as the Board, in its sole discretion, determines to
      be
      appropriate. Matching Employer Contributions shall vest according to the
      following schedule:

     

    
      	
              Years
                of Vesting Service at 

              Termination

            	
              Vested
                Percentage of Matching 

              Employee
                Contributions

            
	 	 
	
              Less
                than 2

               

            	
              0%

            
	
              2

               

            	
              25%

            
	
              3

               

            	
              50%

            
	
              4

               

            	
              75%

            
	
              5
                or more

               

            	
              100%

            

    

    

    Section
      1.5 – Deferred Accounts

     

    
      	
              (a)

            	
              All
                Compensation deferred under the Plan and Matching Employer Contributions,
                if any, shall be credited to the Participant’s Deferred Account in the
                same manner as though contributed as permissible salary deferrals
                or
                matching contributions to the tax-qualified 401(k) plan. Separate
                Deferred
                Accounts shall be created and maintained for each Participant to
                reflect
                the appropriate allocation of deferred Compensation and Matching
                Employer
                Contributions to the accounts and investment funds maintained for
                the
                Participant. Such accounts and investment funds shall be established
                solely for recordkeeping purposes, shall not be required to be informally
                or formally funded or held in specific investments or as separated
                assets,
                and shall meet all of the requirements of Section 7.2 hereof as pertinent
                to unfunded, nonqualified deferred compensation plans. Credits and
                charges
                shall be made to the Deferred Accounts as described in subsections
                (b) and
                (c) of this Section 1.5.

            

    

     

    
      	
              (b)

            	
              The
                Committee may, for administrative purposes, establish unit values
                for one
                or more investment funds (or any portion thereof) and maintain the
                accounts setting forth each Participant’s interest in such investment fund
                (or any portion thereof) in terms of such units, all in accordance
                with
                such rules and procedures that the Committee shall deem fair, equitable
                and administratively feasible. A Participant’s interest in an investment
                fund (or any portion thereof) in the event a unit account is established
                shall be determined by multiplying the then value of a unit in said
                investment fund (or any portion thereof) by the number of units then
                credited to the Participant’s Deferred
                Account.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
              (c)

            	
              To
                extent authorized by the Board, a Participant shall have the authority
                to
                make investment elections with respect to deferred Compensation and
                any
                Matching Employer Contributions in a manner as prescribed by the
                Committee, including but not limited to electronic and telephonic
                means.
                Such investment authority, however, shall not give ownership rights
                to the
                Participant of his or her Deferred Account, but said Deferred Account
                shall continue to be owned and held in the name of the applicable
                Employer
                and subject to creditors’ rights as described in Section 7.2 of the
                Plan.

            

    

     

    Section
      1.6 – Statement of Accounts

     

    The
      Committee shall cause to be provided to each Participant (or Beneficiary as
      applicable), as soon as practical after the close of each calendar quarter,
      a
      statement in such form as the Company deems desirable, setting forth the
      Participant’s current Deferred Account balances.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    ARTICLE
      II

     

    BENEFIT
      DISTRIBUTIONS FROM THE PLAN

     

    Section
      2.1 –Time of Distributions

     

    A
      Participant’s Deferred Account shall be distributed within ninety (90) days
      after a Participant’s Termination.

     

    Section
      2.2 –Form of Distributions

     

    Distributions
      from the Plan shall be paid in a lump sum cash settlement; provided, however,
      that Participants subject to Section 16 of the Exchange Act shall receive their
      distributions in a manner that complies with the requirements of the Exchange
      Act.

     

    Section
      2.3 – Change in Control

     

    In
      the
      event that a Change in Control of the Company occurs, the Committee shall cause
      an immediate lump sum distribution of the Deferred Accounts (whether or not
      vested) under the Plan to be made to all Participants within ninety (90) days
      following the occurrence of the Change in Control.

     

    Section
      2.4 – Six Month Distribution Delay of Non-Grandfathered
      Amounts

     

    If
      a
      Participant is a “specified employee,” within the meaning of Section 409A of the
      Code and as determined under the Company’s policy for determining specified
      employees, on the date of his or her Termination, all Non-Grandfathered Amounts
      shall be paid on the first business day after the date that is six (6) months
      following the date of Termination (or, if earlier, the Participant’s
      death).  The payment made on the first business day after the date
      that is six (6) months following the date of Termination shall include the
      cumulative amount of any amounts that could not be paid or provided during
      such
      six-month period.

     

    Section
      2.5 – Withholding & Payroll Taxes

     

    To
      the
      extent required by law, the Employer shall withhold from other amounts owed
      to a
      Participant or require the Participant to remit to the Employer an amount
      sufficient to satisfy federal, state and local withholding tax requirements
      on
      any distribution from a Participant’s Deferred Account or on the vesting,
      payment or cancellation of amounts owed to the Participant under the
      Plan.  Determinations by the Committee as to withholding shall be
      binding on the Participant and any applicable Beneficiary.

     

    Section
      2.6 – Beneficiary Designation

     

    Each
      Participant may from time to time designate any person or persons (who may
      be
      designated contingently or successively and who may be an entity other than
      a
      natural person) as their Beneficiary or Beneficiaries to whom Plan benefits
      are
      paid if the Participant dies before receipt of all such benefits. Such
      Beneficiary designation(s) shall not be subject to the surviving spouse
      limitations/requirements applicable to tax-qualified retirement plans. Each
      Beneficiary designation shall be filed in the written form prescribed by the
      Committee and will be effective only when filed with the Committee during the
      Participant’s lifetime. Each written Beneficiary designation filed shall cancel
      all Beneficiary designations previously filed with the Committee. A Participant
      may revoke a Beneficiary designation only by filing with the Committee, during
      the Participant’s lifetime, either a superseding Beneficiary designation, or
      such other writing in a form and manner prescribed by the  Committee.
      The revocation of a Beneficiary designation shall not require the consent of
      the
      designated Beneficiary(ies).

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    If
      any
      Participant is not survived by a Beneficiary as designated above, any death
      benefit payable hereunder shall be paid to the executor or administrator of
      the
      Participant’s estate.

     

    A
      surviving Beneficiary of a Participant may designate a Beneficiary to whom
      Plan
      benefits are to be paid if (a) the Beneficiary’s death occurs before receipt of
      all benefits otherwise payable, and (b) without survival of a secondary
      Beneficiary appointed by the Participant. If such a surviving Beneficiary dies
      before receiving the entire death benefit and has not designated a Beneficiary
      (or such Beneficiary has died), the remainder of such benefits shall be paid
      to
      the executor or administrator of such Beneficiary’s estate.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    ARTICLE
      III

     

    WITHDRAWALS

     

    Section
      3.1 – Hardship Withdrawals

     

    A
      participant may request a distribution from all or part of his or her Deferred
      Account upon the occurrence of an Unforeseeable Emergency.  The amount
      of this distribution, however, may not be greater than the amount reasonably
      necessary to satisfy the emergency need or, if less, the value of the
      Participant’s Deferred Account as of the distribution date.  As a
      condition of receiving a distribution under this Section 3.1, the Participant
      must file a written application with the Committee specifying the nature of
      the
      Unforeseeable Emergency and the amount needed to address that circumstance
      and
      supplying any other information the Committee, in its discretion, may need
      to
      ensure that the conditions specified in this Section 3.1 are
      satisfied.  Notwithstanding the foregoing, a distribution on account
      of an Unforeseeable Emergency may not be made to the extent that such emergency
      is or may be relieved through reimbursement or compensation from insurance
      or
      otherwise, by liquidation of the Participant’s assets, to the extent the
      liquidation of such assets would not cause severe financial hardship, or by
      cessation of deferrals under the Plan.

     

    Any
      deferrals by a Participant who obtains a hardship distribution pursuant to
      Treasury Regulation §1.401(k)-(d)(3) from a tax-qualified defined contribution
      plan of any Employer will be cancelled following the date of such
      distribution.  A Participant whose deferrals have been cancelled
      pursuant to this Section 3.1 may elect to make later deferrals of his or
      Compensation only in accordance with Section 1.3 of the Plan.

     

    Section
      3.2 – Withdrawal Procedures

     

    The
      Committee shall from time to time adopt the necessary procedures to be followed
      in the event a Participant seeks to elect a hardship withdrawal under Section
      3.1. All procedures instituted by the Committee shall be binding upon the
      Participant.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    ARTICLE
      IV

     

    COMMITTEE

     

    Section
      4.1 – Committee

     

    The
      retirement committee of the Company’s tax-qualified 401(k) plan shall be the
      Committee of the Plan in accordance with the intention of the Board, as
      expressed herein.

     

    Section
      4.2 – Committee Procedures

     

    A
      Committee member who at any time hereunder is a Participant shall not have
      any
      vote in any decision under the Plan made primarily with respect to such
      Committee member or such member’s or administrator’s benefits hereunder. In this
      event, the decision shall be made by a majority of the Committee members or
      if
      the Plan is administrated by one individual, then by the Board.

     

    All
      actions of the Committee shall be by majority vote and may be taken with or
      without a meeting. If taken without a meeting, the action shall be in writing
      and signed by a majority of the members.

     

    In
      the
      event of any disagreement among the Committee members at any time acting
      hereunder and authorized to act with respect to any matter, the decision of the
      majority of said Committee members shall be controlling and shall be binding
      and
      conclusive upon the Committee, the Participants, and their Beneficiaries and
      upon the respective successors, assigns, executors, administrators, heirs,
      next-of-kin and distributees of all the foregoing.

     

    Subject
      to the provisions of this Section 4.2, each additional and each successor
      Committee member at any time acting hereunder shall have all of the rights
      and
      powers (including discretionary rights and powers) and all of the privileges
      and
      immunities hereby conferred upon the initial Committee members hereunder, and
      all of the duties and obligations so imposed upon the initial Committee members
      hereunder.

     

    Except
      as
      otherwise may be required by any applicable law, no Committee member at any
      time
      acting hereunder shall be required to give any bond or other security for the
      faithful performance of duties as such Committee member.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    ARTICLE
      V

     

    ADMINISTRATION

     

    Section
      5.1 – Administrative Powers and Duties

     

    The
      Board
      shall designate such officer(s) of the Company to be the authorized
      administrator of the Plan and to have the primary administrative responsibility
      with respect to the Plan in coordination with and under the direction of the
      Committee. The administrator shall serve at the pleasure of the Board and the
      Committee and shall administer the Plan.  All policy and
      administrative functions shall be the full and total responsibility of the
      administrator who shall perform said functions under the direction of the
      Committee. The administrator shall interpret the provisions of the Plan where
      necessary and may adopt procedures for the administration of the Plan that
      are
      consistent with the provisions of the Plan.

     

    The
      Committee may retain auditors, accountants, recordkeepers, legal counsel,
      consultants and other counsel, including persons acting in a similar capacity
      for an Employer and who may be Associates, to assist in the administration
      of
      the Plan. The opinion of any such counsel shall be full and complete authority
      and protection in respect to any action taken, suffered or omitted by the
      Committee or administrator designated by the Board in good faith and in
      accordance with such opinion.

     

    Section
      5.2 – Expenses & Taxes

     

    The
      Employer shall pay the reasonable expenses incurred by the Committee and others
      performing services relative to the administration of the Plan, including the
      fees and compensation of the persons referred to in Section 5.1.

     

    Any
      gains
      or losses attributable to the Deferred Account of the Participants shall be
      gains or losses attributable to the Employer and shall be income of the
      Employer.

     

    Section
      5.3 – Records

     

    The
      Employers and the Committee shall each keep such records and shall each give
      reasonable notice to the other of such information, that shall be proper,
      necessary or desirable to effectuate the purposes of the Plan, including,
      without in any manner limiting the generality of the foregoing, records and
      information with respect to deferral elections, Deferred Accounts, dates of
      employment and terminations, and determinations made hereunder. In addition,
      the
      Employer and the Committee shall be protected in acting upon any notice or
      other
      communication purporting to be signed by any person and reasonably believed
      to
      be genuine and accurate, including the Participant’s current mailing
      address.

     

    Section
      5.4 – Determinations

     

    All
      determinations hereunder made by the Company or the Committee shall be made
      in
      the sole and absolute final discretion of the Company or of the Committee,
      as
      the case may be.

     

    In
      the
      event that any dispute shall arise hereunder, including, without in any manner
      limiting the generality of the foregoing, any matter relating to the eligibility
      of any person to participate, the participation of any person, the amount
      payable to any person, and the applicability and the interpretation of the
      provisions of the Plan, the decision of the Committee upon such matter shall
      be
      binding and conclusive upon the Company, the  Committee, the
      Participant, and Beneficiary(ies) and the successors, assigns, heirs and
      distributees of all the foregoing.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    Section
      5.5 – Legal Incompetency

     

    The
      Committee may direct payment either directly to an incompetent or disabled
      person, whether because of minority or mental or physical disability, or to
      the
      guardian of such person, or to the person having custody, without further
      liability on the part of the Employer, Committee, or any person, for the amounts
      of such payment to the person on whose account such payment is
      made.

     

    Section
      5.6 – Action by the Employer

     

    Any
      action by an Employer under the Plan may be by resolution of the applicable
      board of directors (or other managing body), or by a person(s) duly authorized
      by resolution of said board of directors (or managing body) to take such
      action(s).

     

    Section
      5.7 – Exemption From Liability; Indemnification

     

    The
      Committee shall be free from all liability, for acts, omissions and conduct,
      and
      for the acts, omissions and conduct of duly appointed agents, in the
      administration of the Plan, except for those acts or omissions and conduct
      resulting from willful misconduct and gross negligence.

     

    The
      Company shall indemnify the Committee and any Associate, officer or director
      of
      the Company or an applicable Employer against any claims, loss, damage, expense
      and liability, by insurance or otherwise, reasonably incurred by the individual
      in connection with any action or failure to act by reason of membership on
      the
      Committee or performance of an authorized duty or responsibility for or on
      behalf of the Company or any applicable Employer pursuant to the Plan unless
      the
      same is judicially determined to be the result of the individual’s willful
      misconduct or gross negligence. Such indemnification by the Company shall be
      made only to the extent such expense or liability is not payable to or on behalf
      of such person under any liability insurance coverage. The foregoing right
      to
      indemnification shall be in addition to any other rights to which any such
      person may be entitled as a matter of law.

     

    Section
      5.8 – Nonalienation of Benefits

     

    Except
      as
      otherwise provided by law, no benefit, payment or distribution under the Plan
      shall be subject either to the claim of any creditor of a Participant or
      Beneficiary(ies), or to attachment, garnishment, levy, execution or other legal
      or equitable process, by any creditor of such person, and no such person shall
      have any right to alienate, commute, anticipate or assign (either at law or
      equity) all or any portion of any benefit, payment or distribution under the
      Plan.

     

    The
      Plan
      shall not in any manner be liable for or subject to the debts, contracts,
      liabilities, engagements or torts of any person entitled to benefits
      hereunder.

     

    In
      the
      event that any Participant’s benefits are garnished or attached by order of any
      court, the Committee may elect to bring an action for a declaratory judgment
      in
      a court of competent jurisdiction to determine the proper recipient of the
      benefits to be paid by the Plan. During the pendency of said action, any
      benefits that become payable may be paid into the court as they become payable,
      to be distributed by the court to the recipient as it deems proper at the close
      of said action.

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    ARTICLE
      VI

     

    INCLUSION
      AND WITHDRAWAL OF EMPLOYERS

     

    Section
      6.1 – Inclusion of Employers

     

    Any
      Affiliate that is authorized by the Board to participate in the Plan may elect
      to become an Employer by action of its own board of directors (or other managing
      body) and by entering into a Joinder Agreement, a copy of which is attached
      hereto as Exhibit A.

     

    Section
      6.2 – Withdrawal of Employers

     

    The
      Company may, at any time in its sole discretion, determine to exclude any
      Employer from the Plan.  Any Employer may similarly elect to
      discontinue its participation in the Plan at any time by giving sixty (60)
      days
      prior written notice of its intent to so withdraw.

     

    The
      exclusion or withdrawal of an Employer from the Plan shall not adversely affect
      the administration of amounts already credited to the Deferred Account under
      the
      Plan of any Participant employed by such Employer, with respect to which amounts
      the Plan shall be continued until all such amounts under the Plan have been
      paid
      by the Employer or otherwise liquidated under applicable law or judicial
      judgment.  Notwithstanding the foregoing, any exclusion of or
      withdrawal by an Employer shall not have any effect on elections made with
      respect to the Participant’s taxable year and the Company’s taxable year in
      which the withdrawal or exclusion occurred.

     

    Section
      6.3 – Sale or Liquidation of Employers

     

    In
      the
      event the Company should sell or otherwise directly or indirectly dispose of
      sufficient interest in an Employer so that it no longer owns eighty (80) percent
      of such company, or an Employer is liquidated, the Company shall assume payment
      of such Employer’s remaining deferred compensation obligations under the
      Plan.

     

    Section
      6.4 – Transfer Between Participating Employers

     

    In
      the
      event that a Participant’s employment is transferred from one participating
      Employer to another, the transfer shall not adversely affect the administration
      of amounts then credited to the Deferred Account of such Participant on, or
      as
      of the date of, transfer and the Participant’s prior participating Employer
      shall remain obligated to pay such deferred benefits in accordance with the
      provisions of the Plan in effect prior to the date of such transfer. The
      Participant’s new participating Employer shall become obligated under the terms
      of the Plan to pay any deferred compensation amounts credited to the
      Participant’s Deferred Account upon and after said date of
      transfer.

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    ARTICLE
      VII

     

    MISCELLANEOUS
      PROVISIONS

     

    Section
      7.1 – Employment and Other Rights

     

    Nothing
      contained herein shall require an Employer to continue any Participant in its
      employ, nor does the Plan create any rights of any Participant or Beneficiary
      or
      any obligation on the part of an Employer other than those set forth herein.
      The
      benefits payable under the Plan shall be independent of, and in addition to,
      any
      other employment agreements that may exist from time to time concerning any
      other compensation or benefits payable by Employers.

     

    Section
      7.2 – Right to Benefits

     

    The
      sole
      interest of each Participant and each Beneficiary under the Plan shall be to
      receive the benefits provided herein as and when the same shall become due
      and
      distributable in accordance with the terms hereof and applicable elections
      hereunder, and neither any Participant nor any Beneficiary shall have any right,
      title or interest (legal or equitable) in or to any of the specific property
      or
      assets of an Employer. All benefits hereunder shall be distributed solely from
      the general assets of the applicable Employer and no Employer shall maintain
      any
      separate fund or other separate assets to provide any benefits hereunder. In
      no
      manner shall any property or assets of an Employer be deemed or construed
      through any of the provisions of the Plan to be held in trust for the benefit
      of
      any Participant or designated Beneficiary or to be collateral security for
      the
      performance of the obligations imposed by the Plan on an Employer. The rights
      of
      any Participant hereunder and any Beneficiary of the Participant shall be solely
      those of an unfunded and unsecured creditor in respect to the promise of an
      Employer to pay benefits in the future.

     

    Section
      7.3 – Offsets to Benefits

     

    Notwithstanding
      any provisions of the Plan to the contrary, any Employer or the Committee may,
      in its sole and absolute final discretion determine and offset any amounts
      to be
      paid to a Participant under the Plan against any amounts up to $5,000 which
      such
      Participant may owe to such Employer to the extent permitted by Treasury
      Regulation §1.409A-3(j)(4)(xiii).

     

    Section
      7.4 – Amendment and Termination

     

    While
      the
      Employers intend to continue the Plan indefinitely, the Plan may be amended,
      suspended or terminated at any time by the Board; provided, that no such
      amendment, suspension or termination shall adversely affect the administration
      of amounts already credited to Deferred Accounts under the Plan, with respect
      to
      which amounts the Plan shall continue until all deferred Compensation and
      applicable Matching Employer Contributions (if any) credited to Deferred
      Accounts under the Plan have been distributed in accordance with Article II.
      In
      the event it should be determined for any reason by an applicable agency of
      the
      federal government or by any court of competent jurisdiction that the Plan
      does
      not satisfy the exclusions of Section 201(2), Section 301(a)(3) and Section
      401(a)(1) of ERISA, the Plan shall be deemed terminated as of the date of such
      determination unless alternative action by the Board is taken.

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    Section
      7.5 –Income Inclusion Under Section 409A of the Code

     

    The
      Committee may accelerate the time or schedule of a distribution to a Participant
      to pay an amount the Participant includes in income as a result of the Plan
      failing to meet the requirements of Section 409A of the Code and the regulations
      promulgated thereunder.  Such payment may not exceed the amount
      required to be included in income as a result of the failure to comply with
      Section 409A of the Code and the regulations promulgated
      thereunder.

     

    Section
      7.6 – Claims Procedure

     

    
      	
              (a)

            	
              Filing
                Claims.  In general, neither Participants nor their
                Beneficiaries need to present a formal claim for benefits under the
                Plan
                in order to qualify for rights or benefits under the Plan.  If,
                however, any Participant or Beneficiary (“claimant”) is not granted the
                rights or benefits to which the person believes him or herself to
                be
                entitled, a formal claim for benefits must be filed in accordance
                with
                this Section 7.6.  A claim by any person must be presented to
                the Committee within the maximum time permitted by law or under
                regulations promulgated by the Secretary of Labor or his or her delegate
                pertaining to claims procedures.  The claims official will,
                within a reasonable time, and not later than the maximum period of
                time
                specified by law or under regulation, consider the claim and will
                issue
                his or her determination thereon in writing.  If the claim is
                granted, the appropriate distribution or payment will be
                made.  Before deciding the claim, the claims official will
                review the provisions of the Plan and other relevant Plan documents,
                including similar claims, to ensure and verify that the claim is
                made in
                accordance with those documents and that the decision is applied
                consistently with regard to similarly situated
                claimants.

            

    

     

    
      	
              (b)

            	
              Notification
                to Claimant.  If a claim request is wholly or partially
                denied, the Committee will furnish to the claimant a notice of the
                decision within 90 days, (or if the claim is a claim on account of
                disability, no later than 45 days after the receipt of such claim)
                in
                writing and in a manner calculated to be understood by the claimant,
                which
                notice will contain the following
                information:

            

    

     

    
      	
               

            	
              (i)

            	
              Specific
                reason or reasons for the denial;

            

    

     

    
      	
               

            	
              (ii)

            	
              Specific
                references to pertinent Plan provisions upon which the denial is
                based;

            

    

     

    
      	
               

            	
              (iii)

            	
              A
                description of any additional material or infor­mation necessary for
                the claimant to perfect the claim and an explanation of why such
                material
                or information is necessary;

            

    

     

    
      	
               

            	
              (iv)

            	
              An
                explanation of the Plan’s claims review procedure describing the steps to
                be taken by a claimant who wishes to submit his claims for review
                and the
                time limits applicable to such
                procedures;

            

    

     

    
      	
               

            	
              (v)

            	
              A
                statement of the claimant’s right to bring a civil action under
                Section 502(a) of ERISA following an adverse determination upon
                review; and

            

    

     

    
      	
               

            	
              (vi)

            	
              In
                the case of an adverse determination of a claim on account of disability,
                the information to the claimant shall include, to the extent necessary,
                the information set forth in Employee Benefits Security Administration
                Regulation §2560.503-1(g)(1)(v).

            

    

     

    If
      special circumstances require the extension of the 45-day or 90-day period
      described above, the claimant will be notified before the end of the initial
      period of the circumstances requiring the extension and the date by which the
      claims official expects to reach a decision.  Any extension for
      deciding a claim will not be for more than an additional 90-day period, or,
      if
      the claim is a claim on account of disability, for not more than two additional
      30-day periods.

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    
      	
              (c)

            	
              Review
                Procedure.  The claimant or his authorized
                representative may, with respect to any denied
                claim:

            

    

     

    
      	
               

            	
              (i)

            	
              Request
                a review upon a written application filed within 60 days (180 days
                in the
                case of a denial of a claim on account of disability) after receipt
                by the
                claimant of written notice of the denial of his
                claim;

            

    

     

    
      	
               

            	
              (ii)

            	
              Review
                and receive copies of all documents relating to the claimant’s claim for
                benefits, free of charge; and

            

    

     

    
      	
               

            	
              (iii)

            	
              Submit
                documents, records, issues and comments in
                writing.

            

    

     

    Any
      request or submission will be in writing and will be directed to the Committee
      (or its designee).  The Committee (or its designee) will have the sole
      responsibility for the review of any denied claim and will take all steps
      appropriate in the light of its findings.

     

    
      	
              (d)

            	
              Decision
                on Review. The Committee (or its designee) will render a decision
                upon review not later than 60 days (45 days in the case of a claim
                on
                account of disability) after receipt of the request for
                review.  If special circumstances (such as the need to hold a
                hearing on any matter pertaining to the denied claim) warrant additional
                time, the decision will be rendered as soon as possible, but not
                later
                than 60 days after receipt of the request for review.  Written
                notice of any such extension will be furnished to the claimant prior
                to
                the commencement of the extension.  This notice will indicate
                the special circumstances requiring the extension and the date by
                which
                the Committee expects to render a decision and will be provided to
                the
                claimant prior to the expiration of the initial 45-day or 60-day
                period.  The Committee will consider all information submitted
                by the claimant, regardless of whether the information was part of
                the
                original claim.  The decision on review will be in writing and
                will include:

            

    

     

    
      	
               

            	
              (i)

            	
              Specific
                reason or reasons for the decision;

            

    

     

    
      	
               

            	
              (ii)

            	
              Specific
                references to pertinent Plan provisions upon which the decision is
                based;

            

    

     

    
      	
               

            	
              (iii)

            	
              The
                claimant’s ability to review and receive copies of all documents relating
                to the claimant’s claim for benefits, free of
                charge;

            

    

     

    
      	
               

            	
              (iv)

            	
              An
                explanation of any voluntary review procedures describing the steps
                to be
                taken by a claimant who wishes to submit his claims for review and
                the
                time limits applicable to such procedures;
                and

            

    

     

    
      	
               

            	
              (v)

            	
              A
                statement of the claimant’s right to bring a civil action under
                Section 502(a) of ERISA.

            

    

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    In
      the
      case of a claim on account of disability, the review of the denied claim shall
      be conducted by a named fiduciary who is neither the individual who made the
      benefit determination nor a subordinate of such person and no deference shall
      be
      given to the initial benefit determination.  For issues involving
      medical judgment, the named fiduciary must consult with an independent health
      care professional who may not be the health care professional who decided the
      initial claim.  To the extent permitted by law, the decision of the
      claims official (if no review is properly requested) or the decision of the
      review official on review, as the case may be, will be final and binding on
      all
      parties.  No legal action for benefits under the Plan will be brought
      unless and until the claimant has exhausted his or her remedies under this
      Section 7.6.

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    ARTICLE
      VIII

     

    DEFINITIONS

     

    For
      the
      purposes of the Plan, the following words and phrases shall have the meanings
      indicated, unless the context clearly indicates otherwise:

     

    Section
      8.1 – Affiliate

     

    “Affiliate”
      means all persons with whom the Company would be considered a single employer
      under Sections 414(b) and (c) of the Code.

     

    Section
      8.2 – Associate

     

    “Associate”
      means an individual who is currently employed by the Company or any other
      Employer.

     

    Section
      8.3 – Base Compensation

     

    “Base
      Compensation” means the gross base salary and annual bonus (other than any
      Performance Bonus or Fiscal Year Compensation) that, absent a deferral election
      under this Plan or any tax-qualified plan of the Company or an Affiliate, earned
      by a Participant in any year for services performed for the Company and/or
      any
      Affiliate.

    

    Section
      8.4 – Beneficiary

     

    “Beneficiary”
      means the person, persons, or entity designated by the Participant to receive
      any benefits payable under the Plan pursuant to Article II.

     

    Section
      8.5 – Board

     

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

     

    Section
      8.6 – Change in Control

     

    “Change
      in Control” means the occurrence of any one of the following actions or
      events:

     

    
      	
              (a)

            	
              With
                respect to Grandfathered Amounts:

            

    

     

    
      	
               

            	
              (i)

            	
              Any
                person or group (as defined in Section 13 of Exchange Act) other
                than the
                Company or an Affiliate becomes the beneficial owner of, or has the
                right
                to acquire (by contract, option, warrant, conversion of convertible
                securities or otherwise), twenty (20) percent or more of the outstanding
                common shares of the Company entitled to vote for the election of
                directors; or

            

    

     

    
      	
               

            	
              (ii)

            	
              A
                majority of the Board is replaced within any period of two (2) years
                or
                less by directors not approved by the majority of the directors of
                the
                Company in office at the beginning of such period, or a majority
                of the
                Board at any date consists of persons not so approved;
                or

            

    

     

    
      	
               

            	
              (iii)

            	
              The
                shareholders of the Company approve an agreement to merge or consolidate
                the Company with another company other than an Affiliate or an agreement
                to sell or otherwise dispose of all or substantially all of the assets
                to
                an entity other than an Affiliate.

            

    

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    
      	
              (b)

            	
              With
                respect to Non-Grandfathered
                Amounts:

            

    

     

    
      	
               

            	
              (i)

            	
              The
                acquisition by any person, or more than one person acting as a group,
                of
                shares of the Company that, together with the shares the Company
                held by
                such person or group, constitutes more than fifty (50) percent of
                the
                total fair market value or total voting power of all of the shares
                of the
                Company; or

            

    

     

    
      	
               

            	
              (ii)

            	
              A
                majority of the members of the Board is replaced during any twelve
                (12)
                month period by directors whose appointment or election is not endorsed
                by
                a majority of the members of the Board prior to the date of the
                appointment or election; or

            

    

     

    
      	
               

            	
              (iii)

            	
              The
                acquisition by any person, or more than one person acting as a group,
                within any twelve (12) month period, of ownership of shares possessing
                thirty (30) percent or more of the total voting power of all of the
                shares
                of the Company; or

            

    

     

    
      	
               

            	
              (iv)

            	
              The
                acquisition by any person, or more than one person acting as a group,
                within any twelve (12) month period, of assets of the Company that
                have a
                total gross fair market value equal to or more than forty (40) percent
                of
                the total gross fair market value of all of the assets of the Company
                immediately prior to such acquisition or
                acquisitions.

            

    

     

    The
      definition of Change in Control contained herein in this subsection (b) shall
      be
      interpreted in a manner that is consistent with the definition of “change in
      control event” under Section 409A of the Code and the Treasury Regulations
      promulgated thereunder.

     

    Section
      8.7 – Code

     

    “Code”
      means the Internal Revenue Code of 1986, as amended from time to
      time.

     

    Section
      8.8 – Committee

     

    “Committee”
      means that person or persons appointed by the Company to represent the Company
      in the administration of the Plan pursuant to the provisions of Article
      IV.

     

    Section
      8.9 – Company

     

    “Company”
      means Big Lots, Inc. (and prior to May 16, 2001, Consolidated Stores
      Corporation).

     

    Section
      8.10 –Compensation

     

    “Compensation”
      means the total remuneration paid to an individual, including Base Compensation,
      Fiscal Year Compensation and any Performance Bonus.

     

    Section
      8.11 – Deferral Agreement

     

    “Deferral
      Agreement” means an agreement filed by a Participant to effect deferrals of
      Compensation hereunder.

     

    Section
      8.12 – Deferred Account

     

    “Deferred
      Account” means the account or accounts maintained by the Committee for each
      Participant pursuant to Article I.  A separate Deferred Account shall
      be maintained for each Participant.  Additionally, separate
      subaccounts shall be maintained to account for Non-Grandfathered Amounts and
      Grandfathered Amounts as well as any other subaccount necessary to reflect
      the
      nature of the account and various investment fund allocations of the
      Participant.  A Participant’s Deferred Account shall be utilized
      solely as a device for the measurement and determination of the amounts to
      be
      distributed to or on behalf of a Participant pursuant to the Plan; provided,
      however, that such Deferred Account shall not constitute or be treated as a
      trust fund of any kind nor be deemed a funding arrangement under the Code or
      ERISA.

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    Section
      8.13 – Employer

     

    “Employer”
      means the Company and/or an Affiliate that participates in the Plan pursuant
      to
      Section 6.1.

     

    Section
      8.14 – ERISA

     

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

     

    Section
      8.15 – Fiscal Year Compensation

     

    “Fiscal
      Year Compensation” means “fiscal year compensation” as defined under Section
      409A of the Code, relating to a period of service that is coextensive with
      one
      or more consecutive taxable years of any Employer of which no amount is paid
      or
      payable during the taxable year(s) of the Associate or Participant constituting
      the period of service.

     

    Section
      8.16 – Grandfathered Amounts

     

    “Grandfathered
      Amounts” means the portion, if any, of a Participant’s Deferred Account that was
      earned and vested within the meaning of Section 409A of the Code under the
      Plan
      before January 1, 2005 and any earnings (whether actual or notional)
      attributable to such portion of the Participant’s Deferred Account, or to such
      income.

     

    Section
      8.17 – Highly Compensated Employee

     

    “Highly
      Compensated Employee” means an individual (as defined in Section 414(q) of the
      Code) who is employed by the Company or any other Employer.

     

    Section
      8.18 – Matching Employer Contributions

     

    “Matching
      Employer Contributions” means contributions, if any, made by the Employer
      pursuant to Section 1.4 of the Plan. Any Matching Employer Contributions shall
      be made at the sole and final discretion of the Board.

     

    Section
      8.19 – Non-Grandfathered Amounts

     

    “Non-Grandfathered
      Amounts” means the portion, if any, of a Participant’s Deferred Account that are
      not Grandfathered Amounts.

     

    Section
      8.20 – Participant

     

    “Participant”
      means any Highly Compensated Employee who becomes a participant pursuant to
      Section 1.1 of the Plan and who then elects to participate in the Plan as
      described in Article I.

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    Section
      8.21 – Performance Bonus

     

    “Performance
      Bonus” means compensation the amount of which, or the entitlement to which,
      is contingent on the satisfaction of organizational or individual performance
      criteria relating to a performance period of at least twelve (12) consecutive
      months; provided that such criteria have been established in writing by not
      later than ninety (90) days after the commencement of the period of service
      to
      which the criteria relates and the outcome is substantially uncertain at the
      time the criteria are established, and that constitutes “performance-based
      compensation” within the meaning of Treasury Regulation
§1.409A-1(e).

     

    Section
      8.22 – Plan Year

     

    “Plan
      Year” means the twelve (12) month period beginning each January 1 (i.e., the
      calendar year).

     

    Section
      8.23 – Termination

     

    “Termination”
      means a termination of the relationship between a Participant and all Affiliates
      that would be considered a “separation from service” as defined under Section
      409A of the Code and Treasury Regulation §1.409A-1(h), except that for purposes
      of determining whether a Termination has occurred with respect to an Affiliate,
      Sections 1563(a)(1), (2) and (3) of the Code (for purposes of determining a
      controlled group of corporations under Section 414(b) of the Code) and Treasury
      Regulation §1.414(c)-2 (for purposes of determining trades or businesses,
      whether or not incorporated, that are under common control for purposes of
      Section 414(c) of the Code) shall be applied without substituting the phrase
“at
      least 50 percent” for “at least 80 percent” in each place it appears in such
      sections.

     

    Section
      8.24 – Unforeseeable Emergency

     

    “Unforeseeable
      Emergency” means a severe financial hardship to the Participant within the
      meaning of Treasury Regulation §1.409A-3(i)(3) resulting from: (i) an illness or
      accident of the Participant or the Participant’s spouse, Beneficiary, or
      dependent (as defined in Section 152 of the Code, without reference to Sections
      152(b)(1), (b)(2) and (d)(1)(B) of the Code); (ii) loss of the Participant’s
      property due to casualty; or (iii) other similar extraordinary and
      unforeseeable circumstances arising as a result of events beyond the control
      of
      the Participant.

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    ARTICLE
      IX

     

    GENERAL
      PROVISIONS

     

    Section
      9.1 – ERISA Status

     

    The
      Plan
      shall constitute an unfunded plan maintained primarily for the purpose of
      providing deferred compensation benefits for a group of Highly Compensated
      Employees of any Employer.

     

    Section
      9.2 – Compliance with Section 409A of the Code

     

    It
      is
      intended that the Plan comply with Section 409A of the Code and the regulations
      promulgated thereunder (and any subsequent notices or guidance issued by the
      Internal Revenue Service), and the Plan will be interpreted, administered and
      operated accordingly.  Nothing herein shall be construed as an
      entitlement to or guarantee of any particular tax treatment to a
      Participant.

     

    Section
      9.3 – Construction

     

    In
      the
      construction of the Plan, the masculine shall include the feminine and the
      singular shall include the plural in all cases where such meanings would be
      appropriate.

     

    Section
      9.4 – Controlling Law

     

    The
      law
      of the state of the Company’s incorporation shall be the controlling state law
      in all matters relating to the Plan and shall apply to the extent that it is
      not
      preempted by the laws of the United States of America.

     

    Section
      9.5 – Effect of Invalidity of Provision

     

    If
      any
      provision of the Plan is held invalid or unenforceable, such invalidity or
      unenforceability shall not affect any other provisions hereof, and the Plan
      shall be construed and enforced as if such provision had not been
      included.

     

     

    IN
      WITNESS WHEREOF, this Plan has been executed on behalf of the Company by its
      duly appointed officer this 28th day of
      August,
      2007.

     

    
      	 	
              BIG
                LOTS, INC.

            
	 	 	 
	 	
              By:

            	
               /s/
                Charles W. Haubiel II

            
	 	 	 
	 	
              Title:

            	
              Senior
                Vice President, General

            
	 	 	
              Counsel
                and Corporate Secretary

            

    

     

     

    23

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