Document:

ex10v.htm

    
      
        

      

      Exhibit
10.v

      

      

      

      

      

      
 

      

      FIRST
BANCORP

      

      EMPLOYEES’
PENSION PLAN

      

      

       

       

      
 

      

      

      

      
 

      Amended
and Restated:

       

      Effective

       

      January
1, 2001

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      TABLE OF
CONTENTS

      

      
        	
                Article

              	 
      	
                Page

              
	 
      	 
      	 
      
	
                1

              	
                DEFINITIONS

              	
                2

              
	 
      	 
      	 
      
	
                2

              	
                ELIGIBILITY

              	
                14

              
	 
      	 
      	 
      
	
                3

              	
                EARLY
      RETIREMENT

              	
                16

              
	 
      	 
      	 
      
	
                4

              	
                NORMAL
      RETIREMENT

              	
                17

              
	 
      	 
      	 
      
	
                5

              	
                DELAYED
      RETIREMENT

              	
                27

              
	 
      	 
      	 
      
	
                6

              	
                DISABILITY
      RETIREMENT

              	
                28

              
	 
      	 
      	 
      
	
                7

              	
                SURVIVOR
      BENEFITS

              	
                31

              
	 
      	 
      	 
      
	
                8

              	
                TERMINATION
      OF EMPLOYMENT-VESTING

              	
                38

              
	 
      	 
      	 
      
	
                9

              	
                PAYMENT
      OF RETIREMENT BENEFITS

              	
                40

              
	 
      	 
      	 
      
	
                10

              	
                RE-EMPLOYMENT
      / RESTORATION OF SERVICE AND ACCRUED BENEFITS

              	
                45

              
	 
      	 
      	 
      
	
                11

              	
                TOP
      HEAVY RULES

              	
                49

              
	 
      	 
      	 
      
	
                12

              	
                RETIREMENT
      COMMITTEE

              	
                54

              
	 
      	 
      	 
      
	
                13

              	
                CLAIM
      PROCEDURE

              	
                56

              
	 
      	 
      	 
      
	
                14

              	
                CONTRIBUTIONS
      AND FUNDING

              	
                58

              
	 
      	 
      	 
      
	
                15

              	
                ADMINISTRATIVE
      AND FIDUCIARIES’ RESPONSIBILITIES

              	
                59

              
	 
      	 
      	 
      
	
                16

              	
                INCOME
      TAX REGULATIONS 1.401-4(C)(2)

              	
                62

              
	 
      	 
      	 
      
	
                17

              	
                SPENDTHRIFT

              	
                65

              
	 
      	 
      	 
      
	
                18

              	
                THE
      INSURER

              	
                66

              
	 
      	 
      	 
      
	
                19

              	
                AMENDMENT
      AND TERMINATION

              	
                67

              
	 
      	 
      	 
      
	
                20

              	
                MISCELLANEOUS
      PROVISIONS

              	
                72

              
	 
      	 
      	 
      
	
                21

              	
                DIRECT
      ROLLOVERS

              	
                74

              
	 
      	 
      	 
      
	
                APPENDIX
      A

              	
                COVERED
      COMPENSATION 35 YEAR AVERAGE TABLE (2001)

              	
                76

              
	 
      	 
      	 
      
	
                APPENDIX
      B

              	
                SOCIAL
      SECURITY INTEGRATION LIMIT ON EARLY OR DEFERRED COMMENCEMENT OF
      BENEFITS

              	
                77

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      FIRST
BANCORP

       

      EMPLOYEES’
PENSION PLAN

      

      

      EFFECTIVE the 1st day
of January, 1993, the Employer established the First Bancorp Employees’ Pension
Plan.

      

      WHEREAS, Employees and Participants who
have retired or terminated employment from the Employer prior to this restated
Plan shall have all rights and benefits to which they are entitled determined
under the terms of the Plan as it existed at the time such Employees or
Participants retired or terminated employment, unless expressly stated otherwise
herein.

      

      WHEREAS, effective January 1, 2001, the
Plan is amended in its entirety and restated.

      

      WHEREAS, the Plan must comply with all
qualification and operational provisions required by the Uruguay Round
Agreements Act ("GATT"), the Uniformed Services Employment and Re-employment
Rights Act of 1994 ("USERRA"), the Small Business Job Protection Act of 1996
("SBJPA") and Tax Reform Act of 1997 ("TRA'97") (with all such legislation
referred to collectively as "GUST") and any regulations, interpretations,
rulings or procedures promulgated in relation to GUST;

      

      WHEREAS, it is the intention of the
Employer and the Trustees to operate this Pension Plan in accordance with the
provisions of the Internal Revenue Code as amended by the Employee Retirement
Income Security Act of 1974 (ERISA), as interpreted by regulations prescribed by
the Department of the Treasury and the Secretary of Labor; and

      

      WHEREAS, this Plan embodied herein has
been duly approved and authorized by the Board of Directors of said
Company.

      

      

      NOW,
THEREFORE, THIS AGREEMENT,

      

      CREATION
AND NAME

      

      

      This Pension Plan is amended and
restated effective January 1, 2001.  The name of the Plan shall be
designated as First Bancorp Employees’ Pension Plan, hereafter referred to as
"Plan"(#002).

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      ARTICLE
1

       

      DEFINITIONS

      

      

      The
following terms shall have the meaning indicated when capitalized throughout
this document, unless the context clearly indicates otherwise.

      

      
        	
                1.1

              	
                Accrued
      Benefit  shall mean a Participant's benefit on any given
      date and will be the benefit to which he will be entitled at his Normal
      Retirement Date.  The Accrued Benefit is the Participant's
      Accrued Benefit at Normal Retirement Date, calculated under Section 4.2
      herein, using actual Years of Benefit Service and Final Average
      Compensation as of the accrual date.  In no event shall the
      Accrued Benefit as of any accrual date subsequent to this amendment be
      less than the Accrued Benefit as of the adoption date of this
      amendment.

              

      

       

      
        	
                1.2

              	
                Actuarial (or
      Actuarially) Equivalent shall mean a benefit of equivalent value to
      the Normal Annuity Form determined by generally accepted actuarial
      principles.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                For Benefits Not Paid
      As A Lump Sum - All alternate forms of distribution shall be
      Actuarially Equivalent to the Normal Annuity Form of distribution at the
      Normal Retirement Date.  The conversion to an alternate form
      shall be based upon the 1983 Group Annuity Male Mortality Table and an
      interest rate of 8%.  In no event shall the Actuarial Equivalent
      of a benefit to which Section 1.2(a) or (d) is applicable be less than the
      Actuarial Equivalent based on factors in effect immediately prior to the
      adoption of any amendment changing such factors, as applied to the Accrued
      Benefit determined immediately prior to the later of the adoption of or
      effective date of such amendment.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                For Benefits Paid As A
      Lump Sum.  The determination of lump sum values shall be
      based upon (i) “the applicable interest rate” (under Code Section
      417(e)(3)(A)(ii)(II)) which shall be the annual rate of interest on
      30-year Treasury securities for the month one month prior to the beginning
      of the Plan Year during which such distribution is made, and (ii) the
      "applicable mortality table" under Rev. Rul.
  95-6.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                For Determination of
      Top Heavy Status - Pursuant to Section 11.3, "Present Value" shall
      be determined on the basis of a (5%) interest rate assumption and the 1983
      Group Annuity Mortality Table.

              

      

       

      
        	
                 
      

              	
                (d)

              	
                For Determination of
      the Actuarial Reduction of Monthly Benefits For Commencement Prior To Age
      55 - (and for determining reductions in the Excess Percentage
      referred to in Section 4.2) a five percent (5%) interest rate and the 1983
      Group Annuity Mortality Table for males shall be used.  These
      factors shall be applied only after the Accrued Benefit has been reduced
      to age 55 by the other applicable reduction factors under Section 3.1, and
      such reduction shall apply only to the time period prior to age
      55.

              

        
          
             

          

          
            2

            
              

            

          

          
             

          

        

      

       

      
        	
                1.3

              	
                Adjustment
      Factor shall mean the cost of living adjustment factor prescribed
      by the Secretary of the Treasury under Code Section 415(d) for years
      beginning after December 31, 1987, applied to such items and in such
      manner as the Secretary shall
prescribe.

              

      

       

      
        	
                1.4

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

              

      

       

      For
purposes of this Section 1.4, the term "controlled group" means any two or more
corporations, trades or businesses under common control of which the Employer is
a member, or two or more "affiliated organizations" under Code Section
414(m).  The term "two or more corporations, trades or businesses
under common control" will include any group of corporations, trades or
businesses which is either:

       

      
        	
                 
      

              	
                (a)

              	
                a
      parent-subsidiary group, or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                a
      brother-sister group, or

              

      

       

      
        	
                 
      

              	
                (c)

              	
                a
      combined group

              

      

       

      within
the meaning under Code Sections 414(b), 414(c), and 414(m) and their
regulations.

       

      All
Employees of a controlled group will be treated as employed by a single Employer
for purposes of applying the provisions of qualification of this Plan; of
minimum participation standards of this Plan; of minimum vesting standards of
this Plan; and of limitation of benefits and contributions under this
Plan.

       

      Refer to
Section 1.17 for a list of Affiliated Employers.

       

      
        	
                1.5

              	
                Annuity Starting
      Date shall mean the first day of the first period for which a
      benefit under this Plan is payable in the form of an
      annuity.  In the case of a benefit not payable in the form of an
      annuity, the first day on which all events have occurred which entitle the
      Participant to such benefit.

              

      

       

      The
Annuity Starting Date for disability benefits shall be the date such benefits
commence if the disability benefit is not an auxiliary benefit.  An
auxiliary benefit is a disability benefit which does not reduce the benefit
payable at Normal Retirement Age.

       

      
        	
                1.6

              	
                Beneficiary
      shall mean any person or legal entity designated by a Participant pursuant
      to Section 7.7 herein to receive benefits under this
  Plan.

              

      

       

      
        	
                1.7

              	
                Board shall
      mean the Board of Directors of the
Employer.

              

      

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

      
        	
                1.8

              	
                Break-In-Service  shall
      mean the failure of a Participant to complete more than five hundred (500)
      Hours of Service during a twelve (12) consecutive month Plan Year
      period.

              

      

       

      
        	
                1.9

              	
                Code shall mean
      the Internal Revenue Code of 1986 and amendments
  thereto.

              

      

       

      
        	
                1.10

              	
                Committee shall
      mean the Pension Retirement Committee as established under Article 12 of
      the Plan (also known as the Pension Committee or the Retirement
      Committee).

              

      

       

      
        	
                1.11

              	
                Compensation -
      An Employee's Compensation for any Plan Year shall be total annual
      compensation actually paid to the Employee by the Employer for the Plan
      Year concerned, including any amount of earnings deferred under any other
      qualified Employer sponsored plan under Code Sections 125, 401(k), 403(b),
      408(k) for Plan Years beginning after January 1, 2001, Code Section
      132(f), or any other qualified cash or deferred arrangement, but excluding
      any reimbursements for the use of an automobile, any reimbursements due to
      travel or moving expenses, travel or entertainment and the taxable value
      of any Employer paid group term life insurance, or other taxable fringe
      benefit provided by the Employer.

              

      

       

      Notwithstanding
the foregoing, Compensation shall include all of the following types of elective
contributions and all of the following types of deferred
compensation:

       

      
        	
                 
      

              	
                (a)

              	
                elective
      contributions that are made by the Employer on behalf of a Participant
      that are not includible income under Code Sections 125, 402(e)(3),
      402(h)(1)(B), 403(b), and for Plan Years beginning on or after January 1,
      2001, 132(f)(4);

              

      

       

      
        	
                 
      

              	
                (b)

              	
                Compensation
      deferred under an eligible deferred compensation plan within the meaning
      of Code Section 457(b); and

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Employee
      contributions (under governmental plans) described in Code Section
      414(h)(2) that are picked up by the employing unit and thus are treated as
      Employer contributions.

              

      

       

      For Plan
Years beginning on or after January 1, 1989, and before January 1, 1994, the
annual Compensation of each Participant taken into account for determining all
benefits provided under the Plan for any Plan Year shall not exceed
$200,000.  This limitation shall be adjusted by the Secretary of
Treasury at the same time and in the same manner as under Code Section 415(d),
except that the dollar increase in effect on January 1 of any calendar year is
effective for Plan Years beginning in such calendar year and the first
adjustment to the $200,000 limitation is effective on January 1, 1990. For Plan
Years beginning on or after January 1, 1994, Compensation in excess of $150,000
(or such other amount provided in the Code) shall be disregarded for all
purposes other than for purposes of salary deferral elections.  Such
amount shall be adjusted by the Commissioner for increases in the cost-of-living
in accordance with Code Section 401(a)(17)(B).  The cost-of-living
adjustment in effect for a calendar year applies to any determination period
beginning in such calendar year.  If a determination period consists
of fewer than twelve (12) months, the $150,000 annual Compensation limit will be
multiplied by a fraction, the numerator of which is the number of months in the
determination period, and the denominator of which is twelve (12).

       

      If
Compensation for any prior determination period is taken into account in
determining a Participant's’ allocations for the current Plan Year, the
Compensation for such prior

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

      determination
period is subject to the applicable annual Compensation limit in effect for that
prior period.  For this purpose, in determining allocations in Plan
Years beginning on or after January 1, 1989, the annual Compensation limit in
effect for determination periods beginning before that date is
$200,000.  In addition, in determining allocations in Plan Years
beginning on or after January 1, 1994, the annual Compensation limit in effect
for determination periods beginning before that date is $150,000.

       

      For Plan
Years beginning on or after January 1, 1985 and prior to January 1, 1997,
Compensation shall be subject to the family aggregation rules of Code Section
401(a)(17), and the regulations promulgated thereunder, in effect during these
same Plan Years.  Effective January 1, 1997, the family aggregation
provision as described in Code Section 401(a)(17)(A) that requires a Plan
Participant, the spouse of such Participant, and any lineal descendants who have
not attained age 19 before the close of the Plan Year, to be treated as a single
Participant for purposes of applying the limitation on Compensation for a Plan
Year is hereby deleted and shall no longer apply.

       

      For any
self-employed individual covered under the Plan, Compensation will mean Earned
Income.  "Earned Income" means the net earnings from self-employment
in the trade or business with respect to which the plan is established, for
which personal services of the individual are a material income-producing
factor.  Net earnings will be determined without regard to items not
included in gross income and the deductions allocable to such
items.  Net earnings are reduced by contributions by the Employer to a
qualified plan to the extent deductible under Code Section 404.

       

      Net
Earnings shall be determined with regard to the deduction allowed to the
taxpayer by Code Section 164(f) for taxable years beginning after December 31,
1989.

       

      Military
Service.  Effective December 12, 1994, for the Participant who
resumes Employment after a period of absence due to qualified military service
(as defined in Code Section 414(u)), the Plan will impute Compensation in the
amount he would have received if he had remained in active Employment, based on
his rate of pay in effect when he began his absence and taking into account any
promotion he would have received, or if that pay rate cannot be determined with
certainty, the Plan will treat him as having Compensation equal to the amount he
received during the 12-month period preceding his absence, or during the entire
period of his Employment if shorter than 12 months.

       

      
        	
                1.12

              	
                Computation
      Periods:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Eligibility
      Computation Period - For purposes of determining Years of Service
      and Breaks in Service for purposes of eligibility, the initial Eligibility
      Computation Period is the 12-consecutive month period beginning on the
      date the Employee first performs an Hour of Service for the
      Employer.  The succeeding 12-consecutive month period commences
      with the first Plan Year which commences prior to the first anniversary of
      the Employee's initial Eligibility Computation Period regardless of
      whether the Employee is entitled to be credited with 1,000 Hours of
      Service during the initial Eligibility Computation Period.  An
      Employee who is credited with 1,000 Hours of Service in both the initial
      Eligibility Computation Period and

              

      

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      such
first Plan Year as referenced above will be credited with two Years of Service
for purposes of eligibility to participate.

       

      
        	
                 
      

              	
                (b)

              	
                Vesting Computation
      Period - The 12 consecutive month period beginning with the first
      day of the Plan Year and ending with the last day of the Plan Year in
      which an Employee is credited with 1,000 or more Hours of
      Service.  Thus, if an Employee is not credited with at least
      1,000 Hours of Service during a Plan Year, he is not given credit for a
      Year of Vesting Service.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Accrual of Benefit
      Computation Period - The 12 consecutive month period beginning with
      the first day of the Plan Year and ending with the last day of the Plan
      Year during which an Employee is credited with at least 1,000 or more
      Hours of Service.  Thus, if an Employee is not credited with at
      least 1,000 Hours of Service during a Plan Year, he is not given credit
      for a year of benefit accrual for that Plan
  Year.

              

      

       

      
        	
                1.13

              	
                Covered
      Compensation shall mean the average (without indexing) of the
      taxable wage bases in effect for each calendar year during the 35 year
      period ending with the last day of the calendar year in which the
      Participant attains (or will attain) his Social Security Retirement
      Age.  The Covered Compensation Table to be used under this Plan
      is the table rounded to the next lower multiple of $12.00.  As
      this Covered Compensation Table is updated each year for increases in the
      Social Security taxable wage base, the updated Table will be deemed a part
      of this Plan, and will be effective for the Plan Year beginning in such
      calendar year (See Appendix A for the 2001
      35-Year Average Table).  In the event of termination of
      employment of a Participant, the Covered Compensation Table used in
      determining such Participant's Accrued Benefit shall be the Table in
      effect for the Plan Year in which the termination of employment
      occurs.

              

      

       

      If the
definition of Covered Compensation shall be changed by a subsequent statute or
regulation, this Section 1.13 shall be deemed to reflect any such
change.

       

      
        	
                1.14

              	
                Dates:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                The
      original
      Effective Date of the Plan was January 1, 1993.  The
      Effective Date of this Amendment and Restatement is January 1,
      2001.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                Anniversary
      Date is January 1, 2001, and thereafter the Anniversary Date shall
      be the first day of each Plan Year.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Plan
      Year:  The Plan Year shall begin each January 1 and end
      the following December 31.

              

      

       

      
        	
                 
      

              	
                (d)

              	
                Entry Date
      shall mean the first day of the Plan Year (January 1) and the first day of
      the seventh month of the Plan Year (July
1).

              

      

       

      
        	
                 
      

              	
                (e)

              	
                Valuation Date
      is each January 1.  A Valuation Date is the annual date on which
      plan assets and liabilities are
valued.

              

      

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      For
purposes of the Top Heavy Test under Article 11, the Valuation Date is the same
date as specified hereunder for computing plan costs for minimum funding under
Code Section 412.

       

      
        	
                1.15

              	
                Eligible
      Spouse  shall mean one to whom a Participant is married
      throughout the one year period ending on the earlier of the Participant's
      Annuity Starting Date or the Participant's date of death, provided that a
      former spouse will be treated as the Eligible Spouse to the extent
      provided under a Qualified Domestic Relations Order as described in
      section 414(p) of the Code.

              

      

       

      
        	
                1.16

              	
                Employee  shall
      mean any employee of the Employer maintaining the Plan or of any other
      employer required to be aggregated with such Employer under Code sections
      414(b), (c), (m) or (o).

              

      

       

      A Leased
Employee will be considered for purposes of testing under Code Section 410(b)
unless the requirements of Code Section 414(n)(5) are satisfied.

       

      
        	
                1.17

              	
                Employer or
      Company  shall mean First Bancorp (EIN#56-1421916) or any
      other organization which has adopted the Plan with the consent of such
      establishing employer; and any successor of such employer.  The
      term Employer shall also apply to any subsidiary or affiliated
      corporations who adopt the Plan and who, at the time such reference
      applies, are included in the list of Affiliated Employers set forth
      below.  For the purpose of this Plan, First Bancorp, shall deal
      exclusively with the Funding Agent and shall be deemed the representative
      of each Employer, and any action taken by First Bancorp, shall be binding
      on all Employers.

              

      

       

      

      
        	
                List of Affiliated
Employers

              	 
      	
                EIN#

              	 
      	
                Date of Plan Adoption

              
	 
      	 
      	 
      	 
      	 
      
	
                First
      Bank

              	 
      	
                56-0132230

              	 
      	
                1-1-93

              
	
                First
      Bancorp Financial Services

              	 
      	
                56-1597887

              	 
      	
                1-1-93

              
	
                First
      Montgomery Financial

              	 
      	 
      	 
      	 
      
	
                Services
      Corporation

              	 
      	
                54-2061020

              	 
      	
                1-1-93

              
	
                First
      Bank Insurance Services, Inc.

              	 
      	
                56-1659931

              	 
      	
                1-1-93

              
	
                First
      Troy Realty Corporation

              	 
      	
                56-2140094

              	 
      	
                1-1-93

              

      

      

      An
Employer may be removed from the above list as of the date on which it ceases to
be subsidiary to, affiliated with, or allied with First Bancorp, or such
Employer loses its status as a legal entity by means of dissolution, merger,
consolidation, bankruptcy, or otherwise.  An Employer shall also be
removed from the list of Employers upon the termination of the Plan for that
Employer.

       

      If the
adopting Employer is an unrelated entity and has adopted this Plan with the
explicit permission of the Employer, the term Employer shall be deemed to apply
to each Employer independently.  The requirement that any unrelated
entity deal exclusively with the Funding Agent is for administrative convenience
only.  In no event shall this Plan be interpreted to be a
multi-employer plan as defined in Code Section 413(3).

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      
        	
                1.18

              	
                Fund, Trust, or Trust
      Fund  shall be synonymous and shall mean the total of the
      contributions made by the Employer pursuant to the Plan and held by the
      Trustee in a Trust or any Group Annuity Contract created by the Employer
      under the Plan, increased by profits or income thereon and decreased by
      any benefit payments, or any loss or expense incurred in the
      administration of the Trust or Plan or payments
  therefrom.

              

      

       

      
        	
                1.19

              	
                Gender and
      Number - The masculine pronoun shall include the feminine and the
      singular shall include the plural.

              

      

       

      
        	
                1.20

              	
                Hour of
      Service  shall mean each hour for which an Employee is
      either directly or indirectly paid, or entitled to payment by the Employer
      for the performance of duties during the applicable computation
      period.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Crediting Hours
      - Hours shall be credited to an Employee for the Computation Period or
      periods in which the duties were performed.  Each hour for which
      any back pay, irrespective of mitigation of damages, has been either
      awarded or agreed to by the Employer, shall be credited to the Employee
      for the Computation Period or periods to which the award or agreement
      pertains (and not the Computation Period in which the award, agreement or
      payment is made).  Salaried and commissioned Employees employed
      by the Employer whose compensation is not determined on the basis of hours
      worked and whose hours are not required to be recorded by any other
      Federal law shall be credited with forty-five (45) Hours of Service per
      week during which the Employee is performing services on behalf of the
      Employer (and actually performs at least one Hour of Service); provided,
      however, that this alternative method for salaried and commissioned
      Employees may only be used if it results in crediting an Employee to whom
      it is applied with at least one thousand (1,000) Hours of Service for the
      respective computation period.

              

      

       

      An Hour
of Service shall be credited for each hour for which an Employee is paid or
entitled to payment by the Employer or Affiliated Employer on account of a
period of time during which no duties were performed (regardless of whether his
employment relationship has been terminated) due to vacations, holidays,
illness, incapacity, including disability, layoff, jury duty, military duty, or
leave of absence.

       

      
        	
                 
      

              	
                (b)

              	
                Leave of Absence
      Without Pay - A Leave of Absence not in excess of one (1) year
      granted as such by the Employer for reasons of illness, injury, pregnancy,
      reduction of work force, educational purposes or for periods of military
      service during which the Participant's re-employment rights are protected
      by law shall not be considered a termination of employment provided that
      the Participant shall return to the service of the Employer within ninety
      (90) days after such Leave of Absence.  If the Participant shall
      not so return, he shall be deemed to have terminated employment at the
      time the absence commenced.  No credit for Hours of Service
      shall be given for Leave of Absence without pay.  An Hour of
      Service required by Federal law to be credited to an Employee (such as for
      military duty) shall be credited as an Hour of Service under this
      Plan.

              

      

       

      This
definition of Hour of Service shall be construed so as to resolve any
ambiguities in favor of crediting Employees with Hours of Service.

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (c)

              	
                Department of Labor
      Regulations 2530-200b-2(b) and (c) are herein incorporated by
      reference.

              

      

       

      
        	
                 
      

              	
                (d)

              	
                Solely
      for purposes of determining whether a Break in Service (as defined in
      Section 1.8 for participation and vesting purposes), has occurred in a
      Computation Period, an individual who is absent from work for maternity or
      paternity reasons shall receive credit for the Hours of Service which
      would otherwise have been credited to such individual but for such
      absence. For this purpose, eight (8) Hours of Service per day of such
      absence shall be credited, subject to a maximum of 501 Hours of Service
      for maternity or paternity Leave of Absence.  For purposes of
      this paragraph, such an absence means an absence (1) by reason of the
      pregnancy of the individual, (2) by reason of a birth of a child of the
      individual, (3) by reason of the placement of a child with the individual
      in connection with the adoption of such child by such individual, or (4)
      for purposes of caring for such child for a period beginning immediately
      following such birth or placement.  The Hours of Service
      credited under this paragraph shall be credited (1) in the Computation
      Period in which the absence begins if the crediting is necessary to
      prevent a Break in Service in that period, or (2) in all other cases, in
      the following Computation Period.

              

      

       

      
        	
                1.21

              	
                Insurer - Any
      insurance company licensed to do business in any state where this Plan is
      located.

              

      

       

      
        	
                1.22

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

              

      

       

      
        	
                 
      

              	
                (a)

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

              

      

       

      
        	
                 
      

              	
                (1)

              	
                a
      non-integrated contribution rate of at least 10% of compensation, as
      defined in Code Section 415 (c)(3), but including amounts which are
      contributed by the Employer pursuant to a salary reduction agreement and
      which are not includible in the gross income of the Participant under Code
      Sections 125, 402(e)(3), 402(h)(1)(B), 403(b), 457(b) or, for Limitation
      Years beginning on or after Janaury 1, 2001, Code Section 132(f), and
      Employee contributions described in Code Section 414(h)(2) that are
      treated as Employer contributions.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                immediate
      participation; and

              

      

       

      
        	
                 
      

              	
                (3)

              	
                full
      and immediate vesting; and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                if
      Leased Employees do not constitute more than 20% of the recipient's
      non-highly compensated work force.

              

      

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

      
        	
                1.23

              	
                Limitation
      Year  shall mean the 12 month period beginning January 1
      and ending the following December 31.  Execution of this Plan
      (or any amendment to this Plan changing the Limitation Year) constitutes
      adoption of a written resolution by the Employer electing a Limitation
      Year pursuant to governmental
regulations.

              

      

       

      
        	
                1.24

              	
                Normal Annuity
      Form - The Normal Annuity Form for an unmarried
      Participant shall be a life annuity which provides monthly payments to the
      Participant, the first payment becoming due on the first day of the month
      coinciding with or next following such Participant's retirement date, if
      he is then living, and subsequent payments of an equal amount monthly
      thereafter during the lifetime of such Participant, terminating with the
      last payment due preceding the death of such
  Participant.

              

      

       

      Notwithstanding
the preceding paragraph, in the absence of any other election with spousal
consent, the form of payment for a married Participant
who has been married to his spouse for the full twelve month period preceding
his annuity starting date (or for less than twelve months provided they remain
married for at least one year), shall be the Actuarial Equivalent of the Normal
Annuity Form payable as a Qualified Joint and Survivor Annuity.

       

      
        	
                1.25

              	
                Normal Retirement
      Age  shall be age sixty-five
  (65).

              

      

       

      
        	
                1.26

              	
                Normal Retirement
      Date  for a Participant shall be the first day of the
      month coinciding with or next following the Participant's sixty-fifth
      (65th) birthday.

              

      

       

      
        	
                1.27

              	
                Participant
      shall mean any Employee of the Employer who has met the eligibility and
      participation requirements of the Plan pursuant to Article 2
      herein.  The term Participant shall also mean a former Employee
      who retired or terminated with vested benefits, or such other former
      Employee whose service cannot be disregarded under the Break in Service
      rules; provided such former Employee shall participate on his rehire
      date.  In the event a former Participant, who is eligible for
      re-entry into the Plan, has received a lump
      sum distribution of his vested balance, which is less than the present
      value of his Accrued Benefit, and repays such amount upon re-employment,
      his Accrued Benefit shall be
restored.

              

      

       

      
        	
                1.28

              	
                Plan  shall
      mean the First Bancorp Employees’ Pension Plan as embodied in this
      instrument, any and all supporting documents, and all subsequent
      amendments and supplements thereto.

              

      

       

      
        	
                1.29

              	
                Plan
      Administrator  shall mean the Employer, unless otherwise
      designated by the Board.

              

      

       

      
        	
                1.30

              	
                Qualified Joint &
      Survivor Annuity  shall be the Actuarial Equivalent of
      the Normal Annuity Form, and shall provide an immediate annuity for the
      life of the Participant with a survivor annuity for the life of the
      Eligible Spouse which is 50% of the amount of the annuity payable during
      the joint lives of the Participant and the Eligible Spouse.  For
      purposes of Section 4.3(a) regarding the maximum benefit limitations,
      Joint and Survivor annuities with 50% to 100% continuation to the Eligible
      Spouse will be considered a "Qualified Joint and Survivor
      Annuity."

              

      

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      
        	
                1.31

              	
                Qualifying Year of
      Service  shall mean an Eligibility Computation Period as
      defined in Section 1.12(a) during which an Employee completes at least
      1,000 Hours of Service and (subject to Section 10.1), shall commence on
      such Employee's latest employment commencement
  date.

              

      

       

      Military
Leave.  Effective December 12, 1994, credit toward the
Qualifying Year of Service eligibility requirement will be granted for the
period during which an Employee is absent from work by reason of his military
duty with the Uniformed Services of the United States of America; provided that
he retains statutory re-employment rights and resumes Employment within 90 days
after his honorable discharge from active military duty, or during any other
period prescribed by law.

       

      
        	
                1.32

              	
                Service.  The
      specific categories of Service herein shall include, where applicable, all
      service required under Code Section 414(a), with the predecessor employer
      who maintained this Plan.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Years of
      Service

              

      

       

      
        	
                 
      

              	
                (1)

              	
                Years of Service prior
      to January 1, 1993, shall mean all of an Employee's full years and
      completed months of continuous employment, provided he was employed by the
      Employer on January 1, 1993.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                Years of Service on or
      after January 1, 1993, shall mean all Plan Years during which an
      Employee completed 1,000 or more Hours of Service with the Employer or any
      Affiliated Employer, provided that the following special provisions shall
      apply:

              

      

       

      With
respect to an Employee who shall have a Break in Service after and before he
shall have any Vested Interest in his Accrued Benefit under the Plan, all such
Years of Service prior to such break shall be disregarded if the number of
consecutive 1-Year Breaks in Service equals or exceeds the greater of (a) five
(5) consecutive 1-Year Breaks in Service, or (b) the aggregate number of Years
of Service earned prior to the Break(s) in Service.

       

      
        	
                 
      

              	
                (b)

              	
                Years of Benefit
      Service shall mean all of a Participant's Years of Service as an
      Employee, provided, that notwithstanding the provisions of this Section
      1.32, if a Participant retires or has a Break-in-Service and shall have
      received all of his vested Accrued Benefit under the Plan, or the
      Actuarial Equivalent thereof, and shall subsequently re-enter service,
      service prior to such retirement or Break-in-Service shall be disregarded
      for the purpose of determining Years of Benefit Service, subject to the
      requirements of Article 10 being met (regarding reinstatement of Accrued
      Benefits).

              

      

       

      Employees
hired as a result of the November 14, 1997 First Union Bank transaction shall
receive credit for Years of Benefit Service retroactive to their original hire
date with First Union Bank.

       

      Years of
Benefit Service for any Participant under this Plan are subject to the special
provisions found in Section 2.2, if applicable.

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

      Military
Service.  Effective December 12, 1994, each Participant will
receive credit for Years of Benefit Service as if his active employment had
continued during the period of his military service with the Uniformed Services
of the United States of America; provided that he retains statutory
re-employment rights and resumes employment within 90 days after his honorable
discharge from military duty, or during any other period prescribed by
law.

       

      
        	
                 
      

              	
                (c)

              	
                Years of Plan
      Participation - shall mean all of an Employee's Years of Service
      while a Participant in this Plan.  If a Participant's Accrued
      Benefit is determined on the basis of Years of Plan Participation, and if
      a Participant commences participation in the Plan on a date other than the
      first day of a Plan Year, then all Hours of Service credited to the
      Employee during the entire Plan Year, including Hours of Service credited
      to the Employee for the portion of the Plan Year before the date on which
      the Employee commences participation, shall be taken into account in
      determining whether the Employee has 1,000 or more Hours of Service, and
      therefore one Year of Plan
Participation.

              

      

       

      
        	
                 
      

              	
                (d)

              	
                Years of Vesting
      Service -  For  purposes of vesting, a "Year of
      Vesting Service" is as defined in Section 1.32(a)
      above.  Service of any Employee who is a leased employee to any
      employer aggregated under Code Section 414 (b), (c) or (m) must be
      credited for vesting purposes whether or not such individual is eligible
      to participate in the Plan.  All service (subject to Section
      10.2) of an Employee with the Employer must be taken into consideration
      for purposes of determining such Employee's vesting percentage, excluding
      the following service:

              

      

       

      For
Service on or after January 1, 1983, a 1-year Break in Service if the
Participant was not vested and the number of consecutive 1-year Breaks in
Service equals or exceeds the greater of (a) five (5) consecutive 1-year Breaks
in Service, or (b) the aggregate number of Years of Service preceding the
break.

       

      For
purposes of the Vesting Percentage, if one Year of Service is required for
eligibility, and if

       

      
        	
                 
      

              	
                (i)

              	
                an
      Employee’s Year of Service overlaps two vesting computation periods,
      and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      Employee completed 1,000 Hours of Service in the twelve (12) consecutive
      months beginning on his employment (or re-employment) commencement date
      but fails to complete 1,000 Hours or more of Service in either of the
      overlapping vesting computation periods,
and

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                the
      Employee becomes a Participant, then the Employee's Year of Service shall
      also be considered a Year of Vesting Service at the time the Employee
      becomes a Participant.

              

      

       

      
        	
                 
      

              	
                (3)

              	
                Military
      Service.  Effective December 12, 1994, each Participant
      will receive credit for Vesting Service as if his active Employment had
      continued during the period of his military service with the Uniformed
      Services of the United States of America; provided that he retains
      statutory re-employment rights and
resumes

              

      

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                Employment
      within 90 days after his honorable discharge from military duty, or during
      any other period prescribed by law.

              

      

       

      Employees
hired as a result of the November 17, 2000 First Savings Bank acquisition will
receive prior service credit under this Plan for vesting purposes.

       

      
        	
                 
      

              	
                (e)

              	
                Notwithstanding
      the preceding provisions of this Section 1.32, the Years of Service of any
      Employee who terminates employment and is reemployed by the Employer shall
      be determined in conjunction with Article 10
  herein.

              

      

       

      
        	
                1.33

              	
                Social Security
      Retirement Age shall mean the age used as the retirement age for
      the Participant under Section 216(l) of the Social Security Act, but
      without regard to the age increase factor, and shall mean the age at which
      the participant is entitled to receive unreduced Social Security Benefits,
      and as if the early retirement age under Section 216(l)(2) of such Act
      were age 62.

              

      

       

      For
purposes of determining the applicable excess percentage under Section 4.2 and
for determining maximum benefits under Section 4.3, the Social Security
Retirement Age for a given year of birth shall be:

       

      

      
        	
                Year of Birth

              	 
      	
                Social Security Retirement
    Age

              
	 
      	 
      	 
      
	
                1937
      or earlier

              	 
      	
                65
      years

              
	
                1938
      - 1954      

              	 
      	
                66
      years

              
	
                1955
      and after

              	 
      	
                67
      years

              

      

      

      Should
the Social Security Act be amended or should regulations be published to provide
for Social Security Retirement Ages other than those shown in the table herein,
Social Security Retirement Age shall be construed to have the new definition
when effective.

       

      
        	
                1.34

              	
                Trustee  shall
      mean the person, corporation, association, or combination of them, who
      shall accept the appointment to execute the duties of the Trustee as
      specifically set forth in any Trust Agreement entered into pursuant to the
      Plan.

              

      

       

      
        	
                1.35

              	
                Vested
      Interest  shall mean a nonforfeitable right to all or a
      portion of the Accrued Benefit derived from Employer contributions made to
      the Plan.

              

      

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      ARTICLE
2

       

      ELIGIBILITY

      

      

      
        	
                2.1

              	
                Requirements for
      Participation

              

      

       

      An
Employee who was a Participant in the Plan as it existed on December 31, 2000,
or on the adoption date of this Plan if later, shall continue to participate in
this Amended and Restated Plan.  An Employee who as of January 1,
2001, or the adoption date of this Plan if later, was not yet a Participant
shall become a Participant on January 1, 2001, or any subsequent Plan Entry Date
coincident with or next following the later of the completion of a Qualifying
Year of Service or the attainment of age twenty-one (21).

       

      Notwithstanding
the above, the following classes of Employees shall not be eligible to
participate in the Plan:

       

      
        	
                 
      

              	
                (a)

              	
                Leased
      Employees, and

              

      

       

      
        	
                 
      

              	
                (b)

              	
                any
      Employee of the Employer who is included in a unit of employees covered by
      an agreement which the Secretary of Labor finds to be a collective
      bargaining agreement between employee representatives and the Employer, if
      there is evidence that retirement benefits were the subject of good faith
      bargaining between such employee representatives and the Employer,
      and

              

      

       

      
        	
                 
      

              	
                (c)

              	
                independent
      contractors, the terms of whose bona fide employment contract does not
      specifically provide for inclusion in this
Plan.

              

      

       

      
        	
                2.2

              	
                Transferred
      Participants

              

      

       

      
        	
                 
      

              	
                (a)

              	
                A
      Participant who is transferred to any Affiliated Employer which is not an
      Employer as defined in Section 1.17 or to a class of employees not covered
      by this Plan shall be considered a Transferred Participant.  The
      Accrued Benefit of such Transferred Participant shall be determined as of
      the date of transfer and shall be held under the Plan until such time as
      the Transferred Participant becomes eligible to receive it.  If
      such Transferred Participant is not fully vested in his Accrued Benefit as
      of the date of transfer, such service after the date of transfer shall be
      used in determining Years of Vesting Service.  In no event,
      however, shall service with the Affiliated Employer or in a class of
      employees not covered by this Plan be used to accrue further benefits
      under this Plan.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                A
      Participant whose employment changes to a class of employment which is not
      covered by this Plan shall be considered a Transferred Participant and
      shall be treated as described in Section 2.2(a)
  above.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                An
      Employee, previously excluded from the Plan because he was a member of a
      class of Employees excluded from the Plan, shall enter (or re-enter, as
      the case may be) the Plan in the Plan Year during which he becomes a
      member of the class of

              

      

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

      Employees
covered by this Plan.  Any such Employee shall accrue benefits under
this Plan only with respect to those Years of Service performed while a member
of the covered class of Employees.

       

      If an
Employee transfers from employment not covered under this Plan, and if such
transfer occurs at any time during a Plan Year, all Hours of Service earned
during such Plan Year, regardless of whether or not they were worked under
excluded employment, shall be considered in determining Years of Benefit Service
for such year.

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

       

      ARTICLE
3

       

      EARLY
RETIREMENT

      

      

      
        	
                3.1

              	
                Early Retirement
      Benefit - If a Participant terminates employment after his 55th
      birthday but prior to his Normal Retirement Date, he shall be eligible
      for Early
      Retirement, provided the Participant shall have completed fifteen (15)
      Years of Vesting Service in the employ of the Employer.  Monthly
      benefit payments shall start, at the election of the Participant, on the
      Early Retirement Date (defined below) or Normal Retirement Date or on the
      first day of any intervening month, and the amount of such benefit shall
      be determined as follows:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                If
      the payment of benefits commences at his Normal Retirement Date, the
      amount of the benefit shall be the Participant's Accrued Benefit as of his
      Early Retirement Date.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                If
      the payment of benefits commences prior to his Normal Retirement Date, the
      amount of the benefit shall be the Participant's Accrued Benefit as of his
      Early Retirement Date, reduced as
follows:

              

      

       

      The
Accrued Benefit shall be reduced by one-one hundred eightieth (1/180) for each
of the first sixty (60) months, and one-three hundred sixtieth (1/360) for each
of the next sixty (60) months, by which payments commence prior to his Normal
Retirement Date.

       

      
        	
                 
      

              	
                (c)

              	
                After
      applying the reductions referred to in (b) immediately above, the net
      Excess Percentage applicable to each year's accrual as referred to in
      Section 4.2(a)(2) shall be tested to ensure that it does not exceed the
      applicable maximum Excess Percentage as found in Appendix
      B.  To the extent necessary, the Excess Percentage only
      shall be reduced to comply with the table in Appendix
    B.

              

      

       

      
        	
                3.2

              	
                The
      Early Retirement
      Date of a Participant who ceases to be an Employee shall be the
      first day of the month coinciding with or next following the date such
      Participant meets the requirements stated in the first paragraph
      above.

              

      

       

      
        	
                3.3

              	
                The
      Accrued Benefit of a Participant shall be 100% vested and nonforfeitable
      on his Early Retirement Date.

              

      

       

      
        	
                3.4

              	
                A
      terminated Participant who has met the service requirement for Early
      Retirement, but who has not met the age requirement, upon satisfaction of
      the age requirement will be eligible to receive his Accrued Benefit
      appropriately reduced for early commencement of payments in accordance
      with Section 3.1 above.

              

      

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

       

      ARTICLE
4

       

      NORMAL
RETIREMENT

      

      

      
        	
                4.1

              	
                At
      Normal Retirement Age each Participant shall have a 100% vested and
      nonforfeitable right to his Normal Retirement
  Benefit.

              

      

       

      
        	
                4.2

              	
                Amount of Normal
      Retirement Benefit - The amount of the monthly Normal Retirement
      Benefit, payable as the Normal Annuity Form, shall be determined as
      follows:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Determination of
      Normal Retirement Benefit - An amount equal to one-twelfth of the
      sum of (1) plus (2) below:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                Seventy-five
      hundredths of one percent (.75%) of the Participant's "Final Average
      Compensation," multiplied by his number of Years of Benefit Service,
      subject to a maximum of forty (40) such years,
  plus

              

      

       

      
        	
                 
      

              	
                (2)

              	
                sixty-five
      hundredths of one percent (.65%) of the Participant's "Final Average
      Compensation" in excess of the applicable Covered Compensation multiplied
      by his number of Years of Benefit Service, subject to a maximum of
      thirty-five (35) such years.  The applicable Covered
      Compensation table is defined as the current table in effect at the
      beginning of the Plan Year in which termination of employment occurs, or
      in which the accrual date falls.  (Appendix A contains the
      Covered Compensation table for the 2001 Plan Year.  In the event
      that the Covered Compensation table shall be revised by subsequent laws or
      regulations, such table shall be deemed to be in effect for this Plan,
      regardless of the values found in Appendix
    A).

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Minimum Normal
      Retirement Benefit - The minimum Normal Retirement Benefit of a
      Participant shall be $20 per month.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                The
      Normal Retirement Benefit shall be equal to the greater of his Early
      Retirement Benefit or his Normal Retirement Benefit at Normal Retirement
      Age.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Final Average
      Compensation - A Participant's "Final Average Compensation"
      is:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                his
      average annual Compensation for those five consecutive calendar years
      during each of which he earned a Year of Benefit Service, within the last
      ten calendar years in which he earned a Year of Benefit Service including
      the current calendar year during each of which he worked as an Employee,
      that produce the highest average,
or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                his
      average annual Compensation for all calendar years during which he earned
      a Year of Benefit Service while an Employee if five or less
      years.

              

      

       

      
        
           

        

        
          17

          
            

          

        

        
           

        

      

      However,
the Compensation corresponding to a calendar year during which he did not work
throughout the entire year shall be used as one of the five consecutive years if
the result is a higher average than as determined under (1) and/or (2)
above.

       

      In no
event shall any Participant’s benefit accrual hereunder (or in combination with
any contribution or benefit accrual under another qualified plan sponsored by
the Employer) exceed the overall permitted disparity limits of Code Section
401(l).  A Participant’s benefit accrual will be adjusted, if
necessary under this Plan to comply with Code Section 401(l). Any adjustments to
Participants’ benefit accruals hereunder shall be made in a uniform and
nondiscriminatory manner.

       

      
        	
                4.3

              	
                Maximum Limitations on
      Benefits:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Defined Benefit Dollar
      Limitation - Notwithstanding any provision of the Plan to the
      contrary, a Participant's benefit under the Plan shall not exceed the
      maximum amount permitted under Code Section 415.  For purposes
      of determining the maximum amount permitted, Employee contributions, if
      any, are treated as if contributed to a separate Defined Contribution
      Plan.

              

      

       

      The
Defined Benefit Dollar Limitation for any Limitation Year may not exceed the
lesser of:

       

      
        	
                 
      

              	
                (1)

              	
                $90,000,
      adjusted for each Limitation Year by the Adjustment Factor to take into
      account any cost-of-living increase provided for that year in accordance
      with regulations prescribed by the Secretary of the
      Treasury.  Any such increase shall be applicable to former
      employees as well as to Participants whose termination of employment has
      not yet occurred,

              

      

       

      
        	
                 
      

              	
                or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                100%
      of the Participant's average compensation (as defined in Section 4.3(f)(1)
      for the high three years.  For purposes of this Section, a
      Participant's high three years shall be the period of consecutive calendar
      years (3, or all such years if less than 3) during which the Participant
      was an active Participant.

              

      

       

      The
Defined Benefit Dollar Limitation of this Section 4.3(a) is deemed satisfied if
the annual benefit payable to a Participant is not more than $1,000 multiplied
by the Participant's number of Years of Service or parts thereof (not to exceed
10) with the Employer, and the Employer has not at any time maintained a Defined
Contribution Plan, a welfare plan as defined in section 419(e) of the Code, or
an individual medical account as defined in section 415(1)(2) of the Code in
which such Participant participated.

       

      Such
limitation shall apply to benefits commencing at the Participant's Social
Security Retirement Age.

       

      Actuarial Adjustment for
Alternative Forms of Benefits:  Notwithstanding any other Plan
provision, a benefit payable in a form other than a straight life annuity must
be adjusted to an Actuarial Equivalent straight life annuity before applying
the

       

      
        
           

        

        
          18

          
            

          

        

        
           

        

      

      limitations
of this Section.  For Limitation Years beginning before January 1,
1995, such Actuarially Equivalent straight life annuity is equal to the greater
of the annuity benefit computed using the interest rate specified in the Plan
for adjusting benefits in the same form or five percent (5%).  For
Limitation Years beginning after December 31, 1994, the Actuarially Equivalent
straight life annuity is equal to the greater of  the annuity benefit
computed using the interest rate and mortality table defined in Section 1.2 of
the Plan and the annuity benefit computed using an interest rate of five percent
(5%) and the “applicable mortality table” (the mortality table prescribed by the
Secretary of the Treasury).  In determining the Actuarially Equivalent
straight life annuity for a benefit form other than a nondecreasing annuity
payable for a period of not less than the life of the Participant (or, in the
case of a Qualified Pre-retirement Survivor Annuity, the life of the surviving
Spouse), or decreases during the life of the Participant merely because of (a)
the death of the survivor annuitant (but only if the reduction is not below 50%
of the annual benefit payable before the death of the survivor annuitant), or
(b) the cessation or reduction of Social Security supplements of qualified
disability payments (as defined in Code Section 401(a)(11)), "the applicable
interest rate," as defined in Section 1.2 of the Plan, will be substituted for
"a five percent (5%) interest rate assumption" in the preceding
sentence.

       

      
        	
                 
      

              	
                (b)

              	
                Defined Benefit Dollar
      Limitations Adjustments - The Defined Benefit Dollar Limitation
      shall be reduced for benefit commencement prior to the month of attainment
      of the Participant's Social Security Retirement Age.  The
      reduction factor applicable to benefit payments commencing on or after age
      62 is:

              

      

       

      5/9 of
one percent per month for each of the first 36 months by which the benefit
commences prior to the month in which Social Security Retirement Age is
attained.

       

      5/12 of
one percent per month for each month after the first 36 months mentioned above
(up to 24 months) that the benefit commences prior to the month in which Social
Security Retirement Age is attained.

       

      For
Limitation Years commencing after December 31, 1994, the following provisions
shall apply.  The Defined Benefit Dollar Limitation for benefits
commencing prior to age 62 is the Actuarial Equivalent of the limitation for
benefits commencing at age 62, as determined above, reduced for each month by
which benefits commence before the month in which the Participant attains age
62.  The annual benefit beginning prior to age 62 shall be determined
as the lesser of the equivalent annual benefit computed using the interest rate
and mortality table (or other tabular factor) equivalence for early retirement
benefits, and the equivalent annual benefit computed using a five percent (5%)
interest rate and the applicable mortality table as defined in Section 1.2(b) of
the Plan.  Any decrease in the adjusted Defined Benefit Dollar
Limitation determined in accordance with this provision (b) shall not reflect
any mortality decrement to the extent that benefits will not be forfeited upon
the death of the Participant.

       

      The
Defined Benefit Dollar Limitation shall be increased for benefit commencement
subsequent to the month of attainment of the Social Security Retirement
Age.  The equivalent annual benefit beginning after Social
Security

       

      
        
           

        

        
          19

          
            

          

        

        
           

        

      

      Retirement
Age shall be determined as the lesser of the equivalent annual benefit computed
using the interest rate and mortality table (or other tabular factor) specified
in the Plan for purposes of determining Actuarial Equivalence for delayed
retirement benefits, and the equivalent annual benefit computed using a five
percent (5%) interest rate assumption and the applicable mortality table as
defined in Section 1.2 of the Plan.

       

      
        	
                 
      

              	
                (c)

              	
                Adjustment of
      Limitation for Years of Service
      or  Participation.

              

      

       

      
        	
                 
      

              	
                (1)

              	
                Defined Benefit Dollar
      Limitation Adjusted for Participation.  If a Participant
      has completed less than ten (10) Years of Plan Participation,
      the Participant's Accrued Benefit shall not exceed the Defined Benefit
      Dollar Limitation as adjusted by multiplying such amount by a fraction,
      the numerator of which is the Participant's number of Years (or part
      thereof) of Plan Participation, and the denominator of which is ten
      (10).

              

      

       

      
        	
                 
      

              	
                (2)

              	
                Other Defined Benefit
      Limitation Adjusted for Service.  If a Participant has
      completed less than ten (10) Years of
      Service with the Affiliated Employers, the limitations described in
      Code Sections 415(b)(1)(B) and 415(b)(4) shall be adjusted by multiplying
      such amounts by a fraction, the numerator of which is the Participant's
      number of Years of Service (or part thereof), and the denominator of which
      is ten (10).

              

      

       

      
        	
                 
      

              	
                (3)

              	
                Limitations of
      Reductions.  In no event shall this Section reduce the
      limitations provided under Code Sections 415(b)(1) and (4) to an amount
      less than one-tenth of the applicable limitation (as determined without
      regard to this Section 4.3(c).

              

      

       

      
        	
                 
      

              	
                (4)

              	
                Application to Changes
      in Benefit Structure.  To the extent provided by the
      Secretary of the Treasury, this Section 4.3(c) shall be applied separately
      with respect to each change in the benefit structure of the
      Plan.

              

      

       

      
        	
                 
      

              	
                (5)

              	
                Years
      of Service shall include future years occurring before the Participant's
      Normal Retirement Age.  Such future years shall include the year
      which contains the date the Participant reaches Normal Retirement Age, if
      the Participant will receive a Year of Service for such
    year.

              

      

       

      
        	
                 
      

              	
                (d)

              	
                Preservation of
      Current Accrued Benefit Under Defined Benefit
  Plan.

              

      

       

      
        	
                 
      

              	
                (1)

              	
                In
      General.  This Section 4.3(d) shall apply to Defined
      Benefit Plans that were in existence on May 6, 1986, and that met the
      applicable requirements of Code Section 415 as in effect for all
      Limitation Years.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                Protection of Current
      Accrued Benefit.  If the Current Accrued Benefit of an
      individual who is a Participant as of the first day of the Limitation Year
      beginning on or after January 1, 1987, exceeds the benefit limitations
      under Code Section 415(b) (as modified by Sections 4.3(b) and 4.3(c) of
      this Plan), then, for purposes of Code Section 415(b) and (e), the Defined
      Benefit Dollar

              

      

       

      
        
           

        

        
          20

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                Limitation
      with respect to such individual shall be equal to such Current Accrued
      Benefit.

              

      

       

      The following limitations
apply, for Plan Years beginning prior to January 1, 2000, where a Participant in
this Plan is also a Participant in one or more plans, one of which is a
qualified Defined Contribution Plan maintained by the Employer during the
Limitation Years:

       

      In the
event that an individual shall at any time be a Participant in this Plan and/or
any other defined benefit plan of the Employer and in one or more Defined
Contribution plans of the Employer, the sum of the Defined Benefit Plan Fraction
(as defined in Section 4.3(f)(5)) and the Defined Contribution Plan Fraction (as
defined in Section 4.3(f)(6)) for any Limitation Year shall not exceed
1.0.  In the event such limit is exceeded, a reduction in the defined
benefit plan's Accrued Benefit shall be implemented to comply with the combined
limit requirements, to the extent that other permitted adjustments (such as
transition adjustments) do not meet such requirements.

       

      
        	
                 
      

              	
                (e)

              	
                Special Rules for
      Plans Subject to Overall Limitations Under Code Section
      415(e).

              

      

       

      
        	
                 
      

              	
                (1)

              	
                Annual
      Addition.  For purposes of computing the Defined
      Contribution Plan Fraction of Code Section 415(e)(1), "Annual Addition"
      shall mean the amount allocated to a Participant's account during the
      Limitation Year as a result of:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                Employer
      Contributions,

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                Employee
      Contributions,

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                Forfeitures,
      and

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                amounts
      described in Sections 415(l)(2) and 419(e) of the
  Code.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                Recomputation Not
      Required.  The Annual Addition for any Limitation Year
      beginning before January 1, 1987 shall not be recomputed to treat all
      Employee Contributions as an Annual
Addition.

              

      

       

      
        	
                 
      

              	
                (3)

              	
                Adjustment of Defined
      Contribution Plan Fraction.  If the Plan satisfied the
      applicable requirements of Section 415 of the Code as in effect for all
      Limitation Years beginning before January 1, 1987, an amount shall be
      subtracted from the numerator of the Defined Contribution Plan Fraction
      (not exceeding such numerator) so that the sum of the Defined Benefit Plan
      Fraction and Defined Contribution Plan Fraction computed under Code
      Section 415(e)(1) (as revised by this Section 4.3(e)) does not exceed 1.0
      for such Limitation Year.  Such amount to be subtracted shall be
      an amount equal to the product of (a) and (b) where (a) is the sum of the
      Defined Contribution Plan Fraction plus the Defined Benefit Plan Fraction
      as of the Determination Date, minus one, and (b) is the denominator of the
      Defined Contribution Plan Fraction as of the Determination
      Date.

              

      

       

      
        
           

        

        
          21

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (f)

              	
                Special
      Definitions:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                Compensation -
      The Participant's earned income, wages, salaries, fees for professional
      service and other amounts received for personal services actually rendered
      in the course of employment with the Employer maintaining the Plan
      (including, but not limited to, commissions paid salesmen, compensation
      for services on the basis of a percentage of profits, commissions on
      insurance premiums, tips and bonuses).  The term "Compensation"
      shall not include:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                Employer
      contributions to a plan of deferred compensation to the extent the
      contributions are not included in the gross income of the Employee for the
      taxable year in which contributed, on behalf of an Employee to a
      Simplified Employee Pension Plan described in Code Section 408(k) to the
      extent such contributions are deductible by the Employee under Code
      Section 219(b)(7), and any distributions from a plan of deferred
      compensation, regardless of whether such amounts are includible in the
      gross income of the Employee when
distributed.

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                Amounts
      realized from the exercise of a non-qualified stock option, or when
      restricted stock (or property) held by an Employee either becomes freely
      transferable or is no longer subject to a substantial risk of
      forfeiture.

              

      

       

      
        	
                 
      

              	
                (iii)

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

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                Other
      amounts which receive special tax benefits, such as premiums for group
      term life insurance (but only to the extent that the premiums are not
      includible in the gross income of the Employee), or contributions made by
      an Employer (whether or not under a salary reduction agreement) towards
      the purchase of an annuity contract described in Code Section 403(b)
      (whether or not the contributions are excludible from the gross income of
      the  Employee).  The provisions of this subparagraph
      4.3(f)(1) shall apply solely to Section
4.3.

              

      

       

      For
purposes of applying the limitations of Section 4.3 amounts included as
Compensation are those amounts actually paid to a Participant or includible in
his gross income within the Limitation Year.

       

      
        	
                 
      

              	
                (v)

              	
                Notwithstanding
      the above, effective for Limitation Years beginning after December 31,
      1997, the term "Compensation" includes (1) an Employee's elective
      deferrals under Code Section 402(g)(3), and (2) amounts contributed or
      deferred under Code Section 125 or Code Section 457 by the Employer at the
      Employee's election that are not otherwise includible in the Employee's
      gross income, and for Limitation Years beginning after December 31, 2000,
      Code Section 132(f).

              

      

       

      
        
           

        

        
          22

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (2)

              	
                Current Accrued
      Benefit  shall mean the Accrued Benefit of a Participant
      determined as if the Participant had separated from service as of the last
      day of the Plan Year beginning before January 1, 1987 computed as a
      straight life annuity (with no ancillary benefits), taking into account
      the provisions of the Plan as it existed prior to January 1, 1987;
      provided, that in computing a Participant's Current Accrued Benefit, no
      amendments to the Plan adopted after May 5, 1986 which would affect such
      benefit and no cost-of-living adjustments occurring after May 5, 1986
      shall be taken into account.

              

      

       

      
        	
                 
      

              	
                (3)

              	
                Defined Contribution
      Dollar Limitation  Effective for the first Limitation
      Year beginning after December 31, 1994, shall mean the lesser of (i)
      $30,000, adjusted for cost of living in accordance with Code Section
      415(d), in multiples of $5,000 (or rounded to the next lowest multiple of
      $5,000) or (ii) 25% of the Participant’s
  Compensation.

              

      

       

      
        	
                 
      

              	
                (4)

              	
                Defined Benefit
      Plan - A retirement plan which does not provide for individual
      accounts for Employer contributions. The Committee shall treat all Defined
      Contribution plans (whether or not terminated) maintained by the Employer
      as a single plan.

              

      

       

      
        	
                 
      

              	
                (5)

              	
                Defined Benefit Plan
      Fraction  shall mean the following
    fraction:

              

      

       

      Projected
annual benefit of the Participant

       under the
Defined Benefit Plan(s)

      Divided
by the lesser of

       

      
        	
                 
      

              	
                (i)

              	
                125%
      multiplied by the dollar limitation in effect under Code Section
      415(b)(1)(A) for the Limitation
Year,

              

      

       

      
        or

      

       

      
        	
                 
      

              	
                (ii)

              	
                140%
      multiplied by 100% of the Participant's Compensation Limitation under Code
      Section 415(b)(1) for the Limitation Years (referred to as the "Defined
      Benefit Compensation Limitation")

              

      

       

      In the
event an Employee was a Participant in one or more Defined Benefit plans
maintained by the Employer which were in existence on July 1, 1982, if such
Participant's then current accrued benefit (current accrued benefit shall mean a
Participant’s Accrued Benefit under the Plan, determined as if the Participant
had separated from service as of the close of the last Limitation Year beginning
before July 1, 1983) exceeds the Defined Benefit Dollar Limitation, the
denominator of this fraction shall not be less than 125% of such Participant's
current accrued benefit under such plans which the Employee had accrued as of
the end of the 1982 Limitation Year (the last Limitation Year beginning before
January 1, 1983).  The preceding sentence only applies if the Defined
Benefit Plans individually and in the aggregate satisfied the requirements of
Code Section 415 as in effect at the end of the 1982 Limitation
Year.  The Committee shall treat a Master or Prototype plan adopted
and placed in effect by the Employer before October 1, 1983, as a

       

      
        
           

        

        
          23

          
            

          

        

        
           

        

      

      plan in
existence on July 1, 1982; provided however, that the Master or Prototype plan
had a current opinion letter when adopted by the Employer.

       

      In the
case of an individual who was a Participant in one or more Defined Benefit Plans
of the Employer as of the first day of the first limitation year beginning after
December 31, 1986, the application of the limitations of this section shall not
cause the maximum amount permitted for such individual under all such Defined
Benefit Plans to be less than the individual's current Accrued
Benefit.  The preceding sentence applies only if such Defined Benefit
Plans met the requirements of Code Section 415, for all limitation years
beginning before January 1, 1987.

       

      
        	
                 
      

              	
                (6)

              	
                Defined Contribution
      Plan Fraction  shall mean the following
      fraction:

              

      

       

      the sum
of the Annual Additions to the Participant's

      Account
under the Defined Contribution Plan(s)

      as of the close of the
Limitation Year divided by

      the sum
of the lesser of the following amounts

      determined
for the Limitation Year and for each prior

      Year of
Service with the Employer (regardless as to

      whether a
Plan was in existence during those years)

      

      
        	
                 
      

              	
                (i)

              	
                125%
      multiplied by the Defined Contribution Dollar Limitation for Defined
      Contribution Plans in effect under Code Section 415(c)(1)(A) for the
      Limitation Year (determined without regard to the special Dollar
      Limitations for Employee Stock Ownership
plans),

              

      

       

      
        or

      

       

      
        	
                 
      

              	
                (ii)

              	
                140%
      multiplied by 25% of the Participant's Compensation for the Plan Year
      (referred to as the "Defined Contribution Compensation
      Limitation").

              

      

       

      Provided,
that if the limitations of Code Section 415 as in effect for the last Limitation
Year beginning before January 1, 1983 were not exceeded for such Limitation
Year, but the limitation of this Section 4.3 would be exceeded for any
subsequent year, the Defined Contribution Plan Fraction computed for the
Limitation Year beginning before January 1, 1983 shall be permanently adjusted
in accordance with Section 4.3(e)(3).

       

      The
Committee shall make the same adjustment as of the end of the 1983 Limitation
Year (the last Limitation Year beginning before January 1, 1984) if the sum of
the fractions exceeds 1.0 because (i) the Plan is top-heavy in the first Plan
Year beginning after December 31, 1983, or (ii) the Employer had not amended its
plans in existence on July 1, 1982, to comply with the limitations of this
Article 4.  The Committee also may use any "transitional rules"
provided by law which are applicable in computing the Participant's Defined
Contribution Plan Fraction.  The Committee shall treat a Master or
Prototype plan adopted and placed in effect by the Employer before October
1,

       

      
        
           

        

        
          24

          
            

          

        

        
           

        

      

      1983, as
a plan in existence on July 1, 1982; provided however, that the Master or
Prototype plan had a current favorable opinion letter when adopted by the
Employer.

       

      "Transition
Rule" for Defined Contribution Plans: The Plan Administrator may elect to use a
different denominator (taking into account all pre-TEFRA years) in computing the
Fraction after 1982 with respect to each Participant for all years ending before
January 1, 1983.  The Defined Contribution Plan Fraction denominator
for the Limitation Year ending in 1982 shall be multiplied by the "Transition
Fraction".  (This election will be advantageous to any Participant who
earned less than $148,216 for 1981 but detrimental to  those
earning  in excess of $148,216 for 1981).

       

      This
"Transition
Fraction" shall be a fraction the numerator of which is
the lesser of (a) $51,875 or (b) the product of 1.4 multiplied by 25% of the
Participant's Compensation for the Limitation Year ending in 1981; and the denominator of which
is the lesser of (a) $41,500 or (b) 25% of the Compensation of the Participant
for the Limitation Year ending in 1981.  In the event the limitation
of this Section 4.3 would be exceeded for any Limitation Year, the reduction
necessary to comply with the limitation shall be made in the Annual Addition for
such Limitation Year to the Defined Contribution Plan.

       

      
        	
                 
      

              	
                (7)

              	
                Employer - The
      Employer that adopts this Plan.  In the case of a group of
      employers which constitutes a "controlled
      group" of corporations (as defined in Code Section 414(b) as
      modified by Code Section 415(h)); which constitutes trades or businesses
      (whether or not incorporated) which are under "common control"
      (as defined in Code Section 414(c) as modified by Code Section 415(h));
      or, which constitutes an "affiliated
      service" group within the meaning of Code Section 414(m), the
      Committee shall consider all such employers as a single employer for
      purposes of applying the limitations of this Section
  4.3.

              

      

       

      
        	
                 
      

              	
                (8)

              	
                Limitation Year
      - The period selected by the Employer under Section 1.23.  All
      qualified plans of the Employer must use the same Limitation
      Year.  If the Employer amends the Limitation Year to a different
      twelve (12) consecutive month period, the new Limitation Year must begin
      on a date within the Limitation Year for which the Employer makes the
      amendment.

              

      

       

      
        	
                 
      

              	
                (9)

              	
                Projected Annual
      Benefit  shall mean the annual Normal Retirement Benefit
      payable in the form of a straight life annuity (with no ancillary
      benefits) to which a Participant would be entitled under the terms of the
      Plan if the following factors are
assumed:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      Participant will continue employment with the Employer until he reaches
      Normal Retirement Age (or until his then current age, if he has previously
      reached age Normal Retirement Age),

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      Participant's Compensation for the Limitation Year will remain the same
      until the date the Participant attains Normal Retirement Age,
      and

              

      

       

      
        
           

        

        
          25

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (iii)

              	
                all
      other relevant factors used to determine benefits under the Defined
      Benefit Plan for the Limitation Year will remain constant for all future
      Limitation Years.

              

      

       

      
        	
                 
      

              	
                (10)

              	
                Defined Contribution
      Plan shall mean a retirement plan which provides for individual
      accounts for Employer or Employee Contributions.  The Committee
      shall treat all Defined Contribution plans (whether or not terminated)
      maintained by the Employer as a single
plan.

              

      

       

      
        	
                 
      

              	
                (g)

              	
                IRC Section 415
      Incorporated by Reference  The preceding Sections 4.3(a)
      through 4.3(f) are intended to comply with the provisions of Code Section
      415 and the regulations thereunder.  To the extent that there is
      any discrepancy between this Section 4.3 and the Code and regulations, the
      Code and regulations shall govern and are incorporated herein by
      reference.

              

      

       

      
        	
                 
      

              	
                (h)

              	
                Any
      Participant who is subject to Code Section 401(a)(17) shall have his
      Accrued Benefit determined in accordance with Reg. 1.401(a)(17)-1(e), with
      regard to the limit on compensation to be taken into account under the
      Plan.  The 401(a)(17) limit in effect at the beginning of the
      calendar year during which the Plan Year begins shall be the limit for
      that Plan Year.

              

      

       

      
        
           

        

        
          26

          
            

          

        

        
           

        

      

       

      ARTICLE
5

       

      DELAYED
RETIREMENT

      

      

      
        	
                5.1

              	
                A
      Participant may retire later than his Normal
      Retirement  Date.  In such
  event:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                A
      Participant's Delayed Retirement Date shall be the first day of the month
      coincident with or next following his last day of
      employment.  The amount of benefit to which the Participant
      shall be entitled as of the date payments actually commence shall be equal
      to the greater of:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                his
      Accrued Benefit calculated as of his Delayed Retirement Date, considering
      his Final Average Compensation through his Delayed Retirement Date and his
      total Years of Benefit Service as of such date,
  or

              

      

       

      
        	
                 
      

              	
                (2)

              	
                his
      Normal Retirement Benefit actuarially increased to his Delayed Retirement
      Date.

              

      

       

      The net
Excess Percentage applicable to each year's accrual as referred to in Section
4.2(a)(2) shall be tested to ensure that it does not exceed the applicable
maximum Excess Percentage as found in Appendix B.  To the
extent necessary, the Excess Percentage only shall be reduced to comply with the
table in Appendix
B.

       

      
        	
                 
      

              	
                (b)

              	
                The
      benefit so determined in 5.1(a) above shall be of the Normal Annuity
      Form.  The Participant shall have the right, however, to elect
      any other option pursuant to Article 9
herein.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Notwithstanding
      a Participant's decision to remain in the employ of the Employer beyond
      his Normal Retirement Date, payment of his retirement benefits shall
      commence in accordance with Section 9.4(b) (for Plan Years beginning prior
      to January 1, 1997), or 9.4(c) (for Plan Years beginning after December
      31, 1996).

              

      

       

      
        	
                 
      

              	
                (d)

              	
                In
      the event a Participant, who is covered by this Article 5, dies while
      employed, the provisions of Article 7 shall apply with regard to the
      availability and calculation of a death benefit, if
  any.

              

      

       

      
        
           

        

        
          27

          
            

          

        

        
           

        

      

       

      ARTICLE
6

       

      DISABILITY
RETIREMENT

      

      

      
        	
                6.1

              	
                Eligibility for
      Disability Retirement
Benefits

              

      

       

      
        	
                 
      

              	
                (a)

              	
                A
      Participant who is not yet eligible for Early Retirement under Article 3,
      or Normal Retirement under Article 4, and who ceases to be an Employee due
      to disability shall be eligible to receive a Disability Retirement Benefit
      if:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                a
      Participant qualifies for any disability benefits sponsored by the
      Employer under any existing Insured Disability Income Plan, or if no such
      benefits are provided, then

              

      

       

      
        	
                 
      

              	
                (2)

              	
                a
      Participant becomes unable to engage in any substantial gainful occupation
      by reason of any physical or mental impairment which, on the basis of
      competent medical opinion to the satisfaction of the Pension Committee,
      meets the following requirements:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                The
      Participant has become totally disabled by bodily injury, disease or
      mental disorder and is unable to perform any and every duty of any gainful
      occupation for which he is reasonably fitted by training, education, or
      experience, and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                Such
      disability has continued for a period of six consecutive months and will
      be permanent and continuous for the remainder of the Participant's
      lifetime.

              

      

       

      
        	
                 
      

              	
                (3)

              	
                For
      purposes of this Plan, however, no Participant shall be deemed totally and
      permanently disabled if his disability results from chronic alcoholism,
      addiction to narcotics, injury incurred while engaging in any illegal or
      felonious enterprise, intentionally self-inflicted injury, or injury
      incurred while serving in the armed forces of any
  country.

              

      

       

      
        	
                 
      

              	
                (4)

              	
                The
      Employer may require proof of continued disability from time to time, but
      not more frequently than once in any six (6) month
  period.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                The
      Disability Retirement Date of a Participant shall be the first day of the
      month coinciding with or next following the date a Participant meets the
      requirements of Section 6.1(a)
above.

              

      

       

      Provided,
however, if a disabled Participant is entitled upon his disability retirement to
receive benefits under an insured long-term disability program of the Employer,
payment of his disability retirement benefit shall be deferred until the earlier
of (i) his Normal Retirement Date or (ii) the date on which such insured
disability benefit shall terminate, whereupon, if he is then living, he shall
be

       

      
        
           

        

        
          28

          
            

          

        

        
           

        

      

      eligible
to receive his disability retirement benefit reduced as provided in Section
6.2(b)(3).

       

      
        	
                6.2

              	
                Payment of Disability
      Benefit

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Disability
      Benefit Payments shall be payable  commencing on  any
      date elected by the Participant, but not before the six month period
      referred to in Section 6.1(a) has expired, and not later than what would
      have been such Participant's Normal Retirement Date had he not become
      disabled.  The Participant's disability benefit shall be payable
      in accordance with any option elected pursuant to Article 9 herein,
      provided, however, that any such benefit shall cease upon the first to
      occur of the following events:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      date the Participant is deemed to be no longer permanently and totally
      disabled,

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      date the Participant refuses to submit to a medical examination or refuses
      to furnish due proof of continued
disability,

              

      

       

      
        	
                 
      

              	
                (3)

              	
                the
      date of the Participant's death, unless the option elected by the
      Participant pursuant to Article 9 provides for the continuation of
      payments to a surviving spouse or other beneficiary,
  or

              

      

       

      
        	
                 
      

              	
                (4)

              	
                the
      date the Participant attains his Normal Retirement Age, at which time such
      Participant shall be deemed to be a retired Participant no longer required
      to furnish proof of disability.  Any benefit being paid to a
      disabled Participant who reaches Normal Retirement Age shall continue as
      if the Participant had elected such benefit at his Normal Retirement
      Date.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                The
      amount of such benefit shall be determined as
  follows:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                Once
      a Participant is determined to be totally and permanently disabled, his
      Accrued Benefit shall become 100% vested and
    nonforfeitable.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                If
      the payment of benefits commences at Normal Retirement Date, the amount of
      the benefit shall be the Participant's Accrued Benefit as of his
      Disability Retirement Date.

              

      

       

      
        	
                 
      

              	
                (3)

              	
                If
      the payment of benefits commences prior to Normal Retirement Date, the
      amount of the benefit shall be the Participant's Accrued Benefit as of his
      Disability Retirement Date, reduced as
follows:

              

      

       

      The
Accrued Benefit shall be reduced by one-one hundred eightieth (1/180) for each
of the first sixty (60) months and one-three hundred sixtieth (1/360) for each
of the next sixty (60) months by which the starting date of the benefit precedes
Normal Retirement Date, and reduced actuarially in accordance with Section
1.2(d) herein for each year thereafter.

       

      
        
           

        

        
          29

          
            

          

        

        
           

        

      

      After
applying the reductions referred to immediately above, the net Excess Percentage
applicable to each year's accrual as referred to in Section 4.2(a)(2) shall be
tested to ensure that it does not exceed the applicable maximum Excess
Percentage as found in Appendix
B.  To the extent necessary, the Excess Percentage only shall
be reduced to comply with the table in Appendix B.

       

      
        	
                6.3

              	
                Cash-out of Small
      Benefits - The provisions of Section 6.2 notwithstanding, if the
      Actuarially Equivalent lump sum present value of the disability benefit
      determined (at the time distribution commences) for any disabled
      Participant shall be $5,000 or less ($3,500 or less for Plan Years
      beginning on or before August 5, 1997), then such lump sum shall be paid
      directly to such disabled
Participant.

              

      

       

      Notwithstanding
the preceding paragraph, if the lump sum so payable exceeds $3,500 for Plan
Years beginning on or before August 5, 1997, the Participant must be offered an
immediately payable Qualified Joint and Survivor Annuity before the lump sum may
be paid.  In addition, the Participant and the Eligible Spouse must
consent in writing to payment of any such lump sum in excess of $3,500 for Plan
Years beginning on or before August 5, 1997.

       

      
        	
                6.4

              	
                Recovery from
      Disability

              

      

       

      
        	
                 
      

              	
                (a)

              	
                If,
      prior to his Normal Retirement Date, a Participant is deemed to be no
      longer permanently and totally disabled prior to his Normal Retirement
      Date and returns to the service of the Employer within one month of such
      determination or recovery, then the Participant shall be deemed not to
      have incurred a Break in Service.  The number of years and
      fractions thereof during which he received payments pursuant to this
      Article shall not be counted in determining his Years of Service for any
      purposes under the Plan.  Disability payments shall nonetheless
      cease in accordance with Section
6.2(a).

              

      

       

      
        	
                 
      

              	
                (b)

              	
                If,
      prior to his Normal Retirement Date, a Participant is deemed to be no
      longer permanently and totally disabled and he does not return to the
      service of the Employer within one month of such determination or
      recovery, then he shall be deemed to have separated from the service of
      the Employer as of the date he became permanently and totally
      disabled.  In this event, the provisions of Section 6.2(a) shall
      apply, and benefit payments shall
cease.

              

      

       

      
        
           

        

        
          30

          
            

          

        

        
           

        

      

       

      ARTICLE
7

       

      SURVIVOR
BENEFITS

      

      

      
        	
                7.1

              	
                Eligibility for
      Preretirement Death Benefits

              

      

       

      
        	
                 
      

              	
                (a)

              	
                In
      the event a Participant dies (i) before becoming vested in any benefit
      provided by this Plan or (ii) without a surviving Eligible Spouse, there
      shall be no death benefit from this
Plan.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                In
      the event a vested Participant dies before reaching his "Earliest
      Retirement Age," a death benefit in the form of a Qualified Preretirement
      Survivor Annuity shall be paid to his surviving Eligible Spouse, unless
      the conditions of Section 7.4 have been met regarding optional forms of
      benefit.  In the event there is no surviving Eligible Spouse no
      benefit shall be paid hereunder.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                In
      the event a vested Participant dies after reaching his "Earliest
      Retirement Age," a death benefit in the form of a Qualified Joint and
      Survivor annuity shall be paid to his surviving Eligible Spouse, unless
      the conditions of Section 7.4 have been met regarding optional forms of
      benefit.

              

      

       

      
        	
                7.2

              	
                Determination of
      Preretirement Death Benefits

              

      

       

      
        	
                 
      

              	
                (a)

              	
                For
      a Participant who meets the requirements of Section 7.1(b) above, unless
      an optional form of benefit is selected within the Election Period
      pursuant to a Qualified Election, a Qualified
      Preretirement Survivor Annuity shall be determined as
      follows:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      Participant will be deemed to have separated from service on the date of
      death;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                survived
      to the Earliest Retirement Age;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                retired
      with an immediate Qualified Joint and 50% Survivor Annuity at the Earliest
      Retirement Age; and

              

      

       

      
        	
                 
      

              	
                (4)

              	
                died
      on the day after the Earliest Retirement
Age.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                For
      a Participant who meets the requirements of Section 7.1(c) above, unless
      an optional form of benefit is selected within the Election Period
      pursuant to a Qualified Election, the Participant's surviving Eligible
      Spouse (if any) will receive the same benefit that would be payable if the
      Participant had retired with an immediate Qualified Joint and 50% Survivor
      Annuity on the day prior to his
death.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Notwithstanding
      the provisions of Sections 7.2(a) and 7.2(b) above, if the Actuarial
      Equivalent present value (at the time distribution commences) of
      the

              

      

       

      
        
           

        

        
          31

          
            

          

        

        
           

        

      

      survivor's
benefit is $5,000 or less ($3,500 or less for Plan Years beginning on or before
August 5, 1997), then such lump sum present value shall be paid as soon as
practical to the surviving Eligible Spouse.

       

      Notwithstanding
the preceding paragraph, if the lump sum present value exceeds $3,500 for Plan
Years beginning on or before August 5, 1997, however, the Eligible Spouse must
be offered an immediately payable survivor annuity and must consent in writing
to receive the lump sum.

       

      7.3           Post-Retirement Death
Benefit

       

      Upon the
death of the Participant who has retired and elected an optional form of
settlement pursuant to Section 9.3, and subject to the Transition Rules of
Section 9.4, the following distribution provisions shall take
effect:

       

      
        	
                 
      

              	
                (a)

              	
                If
      the Participant dies after distribution of his interest has commenced, the
      remaining portion of such interest will continue to be distributed at
      least as rapidly as under the method of distribution being used prior to
      the Participant's death.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                If
      the Participant dies before distribution of his interest commences, then,
      subject to Sections 7.1(b) or 7.1(c) as applicable, the Participant's
      entire interest will be distributed no later than five (5) years after the
      Participant's death except to the extent that an election is made to
      receive distributions in accordance with (1) or (2)
  below:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                If
      any portion of the Participant's interest is payable to a designated
      Beneficiary, distributions may be made in substantially equal installments
      over the life or life expectancy of the designated Beneficiary commencing
      no later than one (1) year after the Participant's
  death;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                If
      the designated Beneficiary is the Participant's surviving Eligible Spouse,
      the date distributions are required to begin in accordance with (1) above
      shall not be earlier than the date on which the Participant would have
      attained age 70 1/2, and, if the Eligible Spouse dies before payments
      begin, subsequent distributions shall be made as if the Eligible Spouse
      had been the Participant.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                For
      purposes of (b) above, payments that are to be made in installments over a
      specified period of time will be calculated by use of the return multiples
      specified in Section 1.72-9 of the regulations.  Life expectancy
      of a surviving Spouse may be recalculated annually; however, in the case
      of any other designated Beneficiary, such life expectancy will be
      calculated at the time payment first commences without further
      recalculation.

              

      

       

      
        	
                 
      

              	
                (d)

              	
                For
      purposes of (a), (b) and (c) above, any amount paid to a minor child of
      the Participant will be treated as if it had been paid to the surviving
      Eligible Spouse if the amount becomes payable to the surviving Eligible
      Spouse when the child reaches the age of
  majority.

              

      

       

      
        
           

        

        
          32

          
            

          

        

        
           

        

      

      
        	
                7.4

              	
                Definitions.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Election Period (for
      Qualified Preretirement Survivor Annuity):  The period
      which begins on the first day of the Plan Year in which the Participant
      attains age 35 and ends on the date of the Participant's
      death.  If a Participant separates from service prior to the
      first day of the Plan Year in which age 35 is attained, with respect to
      benefits accrued prior to separation, the Election Period shall begin on
      the date of separation.

              

      

       

      Pre-age 35
Waiver:  A Participant who will not yet attain age 35 as of the
end of any current Plan Year may make a special Qualified Election to waive the
Qualified Preretirement Survivor Annuity for the period beginning on the date of
such election and ending on the first day of the Plan Year in which the
Participant will attain age 35.  Such election will not be valid
unless the Participant receives a written explanation of the Qualified
Preretirement Survivor Annuity in such terms as are comparable to the
explanation required under section 7.5.  Qualified Preretirement
Survivor Annuity coverage will be automatically reinstated as of the first day
of the Plan Year in which the Participant attains age 35.  Any new
waiver on or after such date shall be subject to the full requirements of this
article.

       

      
        	
                 
      

              	
                (b)

              	
                Earliest Retirement
      Age:  The earliest date on which, under the Plan, the
      Participant could elect to receive retirement benefits.  For
      this purpose, if a Participant dies prior to meeting the service
      requirement, if any, for eligibility for early retirement, then his
      Earliest Retirement Age shall be his Normal Retirement
  Age.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Qualified
      Election: A waiver of a Qualified Joint and Survivor Annuity or a
      Qualified Preretirement Survivor Annuity.  Any waiver of a
      Qualified Joint and Survivor Annuity or a Qualified Preretirement Survivor
      Annuity shall not be effective unless:  (1) the Participant's
      Eligible Spouse consents in writing to the election; (2) the election
      designates a specific alternate beneficiary, including any class of
      beneficiaries or any contingent beneficiaries, which may not be changed
      without Spousal consent (or the Eligible Spouse expressly permits
      designations by the Participant without any further Spousal consent; (3)
      the Spouse's consent acknowledges the effect of the election; and (4) the
      Spouse's consent is witnessed by a Plan representative or notary
      public.  Additionally, a Participant's waiver of the Qualified
      Joint and Survivor Annuity will not be effective unless the election
      designates a form of benefit payment under Article 9 which may not be
      changed without Spousal consent (or the Spouse expressly permits
      designations by the Participant without any further Spousal
      consent).  If it is established to the satisfaction of a Plan
      representative that such written consent may not be obtained because there
      is no Spouse or the Spouse cannot be located, a waiver will be deemed a
      qualified election.

              

      

       

      Any
consent by a Spouse obtained under this provision (or establishment that the
consent of a Spouse cannot be obtained) shall be effective only with respect to
such Spouse.  A consent that permits designations by the Participant
without any requirement of further consent by such Spouse must acknowledge that
the Spouse

       

      
        
           

        

        
          33

          
            

          

        

        
           

        

      

      has the
right to limit consent to a specific beneficiary, and a specific form of benefit
where applicable, and that the Spouse voluntarily elects to relinquish either or
both of such rights.  A revocation of a prior waiver may be made by a
Participant without the consent of the Spouse at any time prior to the
commencement of benefits.  The number of revocations shall not be
limited.  No consent obtained under this provision shall be valid
unless the Participant has received notice as provided in Section 7.5
below.

       

      The terms
of any annuity contract purchased and distributed by the Plan to a Participant
or Spouse shall comply with the provisions of this Plan.

       

      
        	
                7.5

              	
                Notice
      Requirements.

              

      

       

      
        	
                 
      

              	
                (a)

              	
                In
      the case of a Qualified Joint and
      Survivor Annuity as described in Section 1.30, the Plan
      Administrator shall provide each Participant no less than 30 days and no
      more than 90 days prior to the commencement of benefits, a written
      explanation of:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      terms and conditions of a Qualified Joint and Survivor
      Annuity;

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      Participant's right to make and the effect of an election to waive a
      Qualified Joint and Survivor Annuity form of
  benefit;

              

      

       

      
        	
                 
      

              	
                (3)

              	
                the
      rights of a Participant's Eligible
Spouse;

              

      

       

      
        	
                 
      

              	
                (4)

              	
                the
      right to make, and the effect of, a revocation of a previous election to
      waive the Qualified Joint and Survivor Annuity;
  and

              

      

       

      
        	
                 
      

              	
                (5)

              	
                the
      relative values of the various optional forms of benefit under the
      Plan.

              

      

       

      The
Annuity Starting Date for a distribution in a form other than a Qualified Joint
and Survivor Annuity may be less than 30 days after receipt of the written
explanation described in the preceding paragraph provided:  (a) the
Participant has been provided with information that clearly indicates that the
Participant has at least 30 days to consider whether to waive the Qualified
Joint and Survivor Annuity and elect (with spousal consent) to a form of
distribution other than a Qualified Joint and Survivor annuity; (b) the
Participant is permitted to revoke any affirmative distribution election at
least until the Annuity Starting Date or, if later, at any time prior to the
expiration of the 7-day period that begins the day after the explanation of the
Qualified Joint and Survivor Annuity is provided to the Participant; and (c) the
Annuity Starting Date is a date after the date that the written explanation was
provided to the Participant.  The normal form annuity cannot be waived
after the commencement of benefits.

       

      
        	
                 
      

              	
                (b)

              	
                In
      the case of a Qualified
      Preretirement Survivor Annuity as described in Section 7.2 of this
      Article, the Plan Administrator shall provide each Participant within the
      "applicable period" for such Participant, a written explanation of the
      Qualified Preretirement Survivor Annuity in such terms and in such manner
      as would be

              

      

       

      
        
           

        

        
          34

          
            

          

        

        
           

        

      

      comparable
to the explanation under Section 7.5(a) applicable to a Qualified Joint and
Survivor Annuity.

       

      The
"applicable period" for a Participant is whichever of the following periods ends
last:  (i) the period beginning with the first day of the Plan Year in
which the Participant attains age 32 and ending with the close of the Plan Year
preceding the Plan Year in which the Participant attains age 35; (ii) a
reasonable period ending after the individual becomes a Participant; (iii) a
reasonable period ending after Section 7.5(c) ceases to apply to the
Participant; (iv) a reasonable period ending after this Article first applies to
the Participant.  Notwithstanding the foregoing, notice must be
provided within a reasonable period ending after separation of service in case
of a Participant who separates from service before attaining age
35.

       

      For
purposes of the preceding paragraph, a reasonable period ending after the
enumerated events described in (ii), (iii) and (iv) is the end of the two-year
period beginning one year prior to the date the applicable event occurs and
ending one year after that date.  In the case of a Participant who
separates from service before the Plan Year in which age 35 is attained, notice
shall be provided within the two-year period beginning one year prior to
separation and ending one year after separation.  If such a
Participant thereafter returns to employment with the employer, the applicable
period for such Participant shall be redetermined.

       

      
        	
                 
      

              	
                (c)

              	
                Notwithstanding
      the other requirements of this Section 7.5, the respective notices
      prescribed by this Section need not be given to a Participant if this Plan
      "fully subsidizes" the costs of a Qualified Joint and Survivor Annuity or
      Qualified Preretirement Survivor Annuity and if the Participant is not
      permitted to waive either form of benefit described above or select a
      nonspouse beneficiary.  For purposes of this Section 7.5(c), a
      Plan fully subsidizes the costs of a benefit if under the Plan the failure
      to waive such benefit by a Participant would not result in a decrease in
      any plan benefits with respect to such Participant and would not result in
      increased contributions from the
Participant.

              

      

       

      
        	
                7.6

              	
                Transitional Rules
      (Terminated Vested
Participants)

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Any
      living Participant not receiving benefits on August 23, 1984, who would
      otherwise not receive the benefits prescribed by the previous Sections of
      this Article 7, must be given the opportunity to elect to have the prior
      Sections of this Article apply if such Participant is credited with at
      least one Hour of Service under this Plan or a Predecessor Plan in a Plan
      Year beginning on or after January 1, 1976, and such Participant had at
      least 10 Years of Service when he separated from
  service.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                Any
      living Participant not receiving benefits on August 23, 1984, who was
      credited with at least one Hour of Service under this Plan or a
      Predecessor Plan on or after September 2, 1974, and who is not otherwise
      credited with any service in a Plan Year beginning on or after January 1,
      1976, must be given the opportunity to have his benefits paid in
      accordance with Section 7.6(d) of this
Article.

              

      

       

      
        
           

        

        
          35

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (c)

              	
                The
      respective opportunities to elect (as described in Sections 7.6(a) and
      7.6(b) above) must be afforded to the appropriate Participants during the
      period commencing on August 23, 1984, and ending on the date benefits
      would otherwise commence to said
Participants.

              

      

       

      
        	
                 
      

              	
                (d)

              	
                Any
      Participant who has elected pursuant to Section 7.6(b) of this Article and
      any Participant who does not elect under Section 7.6(a) or who meets the
      requirements of Section 7.6(a) except that such Participant does not have
      at least 10 Years of Service when he separates from service, shall have
      his benefits distributed in accordance with all of the following
      requirements if benefits would have been payable in the form of a life
      annuity:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                Automatic Joint and
      Survivor Annuity - If benefits in the form of a life annuity become
      payable to a married
      Participant who:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                begins
      to receive payments under the Plan on or after Normal Retirement Age;
      or

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                dies
      on or after Normal Retirement Age while still working for the Employer;
      or

              

      

       

      
        	
                 
      

              	
                (iii)

              	
                begins
      to receive payments on or after the Qualified Early Retirement Age;
      or

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                separates
      from service on or after attaining Normal Retirement Age (or the Qualified
      Early Retirement Age) and after satisfying the eligibility requirements
      for the payment of benefits under the Plan and thereafter dies before
      beginning to receive such benefits;

              

      

       

      then such
benefits will be received under this Plan in the form of a Qualified Joint and
Survivor Annuity, unless the Participant has elected otherwise during the
Election Period.  The Election Period must begin at least 6 months
before the Participant attains Qualified Early Retirement Age and end not more
than 90 days before the commencement of benefits.  Any election
hereunder will be in writing and may be changed by the Participant at any
time.

       

      
        	
                 
      

              	
                (2)

              	
                Election of Early
      Survivor Annuity - a Participant who is employed after attaining
      the Qualified Early Retirement Age will be given the opportunity to elect,
      during the Election Period to have a survivor annuity payable on
      death.  If the Participant elects the survivor annuity, payments
      under such annuity must not be less than the payments which would have
      been made to the spouse under the Qualified Joint and Survivor Annuity if
      the Participant had retired on the day before his death.  Any
      election under this provision will be in writing and may be changed by the
      Participant at any time.  The Election Period begins on the
      later of:

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      90th day before the Participant attains the Qualified Early Retirement
      Age, or

              

      

       

      
        
           

        

        
          36

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (ii)

              	
                the
      date on which participation begins, and ends on the date the Participant
      terminates employment.

              

      

       

      
        	
                 
      

              	
                (3)

              	
                For
      purposes of this Section 7.6(d):

              

      

       

      
        	
                 
      

              	
                (i)

              	
                Qualified Early
      Retirement Age is the latest
      of:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                the
      earliest date, under the Plan, on which the Participant may elect to
      receive retirement benefits,

              

      

       

      
        	
                 
      

              	
                (b)

              	
                the
      first day of the 120th month beginning before the Participant reaches
      Normal Retirement Age, or

              

      

       

      
        	
                 
      

              	
                (c)

              	
                the
      date on which the Participant begins
  Participation.

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                Qualified Joint and
      Survivor Annuity is as defined in Section
  1.30.

              

      

       

      
        	
                7.7

              	
                Beneficiary - A
      Participant or former Participant electing an optional form of benefit
      which may become payable after his death in a lump sum, or for a period
      determined without reference to the duration of any person's life, may
      designate in writing one or more direct or contingent beneficiaries on
      forms supplied by the Committee.  However, in order for a
      married Participant to name a beneficiary other than his Eligible Spouse,
      he must comply with Section 7.4(c).  A Participant or former
      Participant may change his designation at any time in the same
      manner.  Any portion of a Participant's or former Participant's
      death benefit which is not disposed of under a designation of beneficiary
      for any reason whatsoever shall be paid in the following
      order:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                to
      his Spouse, if living, otherwise

              

      

       

      
        	
                 
      

              	
                (b)

              	
                his
      natural or adopted children and survivors thereof, in equal shares per
      stirpes, otherwise

              

      

       

      
        	
                 
      

              	
                (c)

              	
                his
      parents and survivor thereof, in equal shares,
  or

              

      

       

      
        	
                 
      

              	
                (d)

              	
                his
      executors or administrators.

              

      

       

      The
benefit shall be paid to the first named person or class of persons surviving
the Participant, in the order listed above, to the exclusion of all subsequently
named persons or classes.  "Beneficiary" means the person, or persons,
designated by the Participant, or former Participant, or by the terms of this
Section, to receive death benefits, but the provisions of this Section shall in
no event apply to any amounts payable to a contingent pensioner, or other person
entitled to payments for life after the death of the Participant, or former
Participant, under any optional form of pension payment.

       

      
        	
                7.8

              	
                Notwithstanding
      any provision of this Article 7 to the contrary, any death benefit
      provided herein shall be an "incidental" benefit within the meaning of
      Reg. 1.401-1(b) and any amendments thereto.  For the purpose of
      complying with this Section, a Qualified Preretirement Survivor Annuity
      shall always be an incidental
benefit.

              

      

       

      
        
           

        

        
          37

          
            

          

        

        
           

        

      

       

      ARTICLE
8

       

      TERMINATION
OF EMPLOYMENT - VESTING

      

      

      
        	
                8.1

              	
                Nonforfeitable
      Rights - Notwithstanding any other provisions of this Article, a
      Participant's Accrued Benefit shall be 100% vested and nonforfeitable upon
      such Participant's attaining Normal Retirement Age or, if earlier, upon
      his becoming totally and permanently disabled pursuant to Article 6
      herein.

              

      

       

      
        	
                8.2

              	
                Terminated Participant
      - Vesting  Schedule - In the event a Participant
      terminates his employment for any reason other than for disability or
      retirement, he shall be considered a terminated
      Participant.  Such terminated Participant shall have a vested
      right to a portion of his Accrued Benefit funded by the Employer based on
      his Years of Vesting Service at his date of termination.  The
      amount of his Vested Accrued Benefit shall be a percentage of his Accrued
      Benefit accrued at date of termination of employment as determined by the
      following schedule:

              

      

       

      
        
          	
                  Years of Vesting Service

                	 
      	
                  Vesting Percentage

                
	
                  Less
      than 5 years

                	 
      	
                  0%

                
	
                  5
      years or more

                	 
      	
                  100%

                

        

      

      
         

      

      
        	
                8.3

              	
                The facts concerning
      the termination of a Participant's employment shall be transmitted
      to the Committee of the Plan by written statement from the Employer, and
      the Committee may accept such statement as true.  The Committee
      shall not incur any liability by reason of any action taken or omitted on
      the strength of such statement.

              

      

       

      
        	
                8.4

              	
                Normal Method and Time
      of Payment - Vested Benefit - No payment or distribution of a
      vested benefit shall occur until the Participant terminates
      employment.  If a termination of employment does occur, then his
      vested Accrued Benefit shall be deferred with the first payment to
      commence on:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                his
      Normal Retirement Date, or

              

      

       

      
        	
                 
      

              	
                (b)

              	
                if
      the terminated Employee had met the Years of Service requirement for Early
      Retirement under the Plan, then at his election payments of the annuity
      may commence once he meets the age requirement for Early Retirement,
      subject to the early retirement reduction factors as provided in Section
      3.1(b).

              

      

       

      However,
a lump sum cash payment of the Actuarial Equivalent of his vested Accrued
Benefit may be made to a terminated Participant as soon as possible after the
first day of the Plan Year following a Break in Service of the Participant if
the Actuarial Equivalent  (determined at the time distribution
commences) of the Participant's vested Accrued Benefit is $5,000 or less ($3,500
or less for Plan Years beginning on or before August 5, 1997).

       

      
        
           

        

        
          38

          
            

          

        

        
           

        

      

      Notwithstanding
the preceding paragraph, for Plan Years beginning on or before August 5, 1997,
the written consent of a terminated Participant and his Eligible Spouse, if any,
is necessary before a lump sum distribution of more than $3,500 can be
made.  In addition, if the lump sum value  exceeds $3,500 for Plan
Years beginning on or before August 5, 1997, the Participant must be offered an
immediately payable Qualified Joint and Survivor Annuity before the lump sum may
be paid.

       

      Deemed
Cash-out  A Participant who has terminated his employment with
the Employer and who has no Vested Interest in his Accrued Benefit shall be
deemed to have received a distribution of the full value of his Accrued Benefit
coincident with the date he separated from service with the
Employer.

       

      A partial
or total cash-out may not be made, after the Annuity Starting Date, where the
Actuarial Equivalent of the Qualified Joint and Survivor Annuity or Qualified
Preretirement Survivor Annuity either does or does not exceed $5,000 ($3,500 for
Plan Years beginning on or before August 5, 1997), unless (i) the annuity form
of payment has been waived in accordance with Article 9, (ii) the cash-out is
consented to in writing by the Participant and the Participant's Eligible
Spouse, if any, or (iii) where the Participant is deceased, the surviving
Eligible Spouse consents in writing.

       

      
        	
                8.5

              	
                Restoration of Accrued
      Benefits - If a Participant receives a distribution pursuant to
      this Section and the Participant resumes covered employment under the
      plan, he shall have the right to restore his Employer-provided Accrued
      Benefit (including all optional forms of benefits and subsidies relating
      to such benefits) to the extent forfeited upon the repayment to the Plan
      of the full amount of the distribution plus interest, compounded annually
      from the date of distribution at the rate determined for purposes of Code
      section 411(c)(2)(C).  Such repayment must be made before the
      earlier of five years after the first date on which the Participant is
      subsequently reemployed by the Employer, or the date the Participant
      incurs 5 consecutive 1-year Breaks in Service following the date of
      distribution.

              

      

       

      If a
Participant is deemed to receive a distribution pursuant to Section 8.4, and the
Participant resumes employment covered under this Plan before the date the
Participant incurs 5 consecutive breaks in service, upon the re-employment of
such Participant, the Employer-provided Accrued Benefit will be restored to the
amount of such Accrued Benefit on the date of the deemed
distribution.

       

      
        	
                8.6

              	
                No Divestment for
      Cause - Under no circumstances shall a Participant be divested of
      any benefits for cause.

              

      

       

      
        
           

        

        
          39

          
            

          

        

        
           

        

      

       

      ARTICLE
9

       

      PAYMENT
OF RETIREMENT BENEFITS

      

      
        	
                9.1

              	
                At
      a Participant's Disability, Early, Normal or Delayed Retirement Date,
      benefits shall be provided him in accordance with
      this Plan.  Such benefits shall be provided from the Plan
      assets.  Any annuity contract distributed to a retiring
      Participant from the Plan shall contain the word
      "nontransferable."

              

      

       

      Subject
to Section 9.4 herein, there shall be no payment of benefits to any retiring or
terminating Participant until such Participant actually ceases to be an active
Employee of the Employer.

       

      
        	
                9.2

              	
                The
      retirement benefit, with respect to a Participant who has been married
      throughout the one year period ending on his Annuity Starting Date, shall
      be payable under the form of the Qualified Joint and Survivor Annuity with
      50% continuation as described in Section 1.30, subject to the
      following:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Such
      retirement benefit shall be the Actuarial Equivalent of the "Normal
      Annuity Form" of retirement
benefit.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                The
      Participant's Eligible Spouse shall be designated as the contingent
      annuitant.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                In
      lieu of this form of payment, a Participant (and his Eligible Spouse) may,
      prior to his actual retirement date, elect in writing (after having
      received a written explanation of the terms and conditions of the survivor
      annuity described in Section 7.5 of this Plan and the effect of
      an election under this subsection) to have his retirement benefit payable
      under any one of the other forms of retirement benefits or annuity options
      provided under the Plan.  In order to elect out of a Qualified
      Joint and Survivor Annuity, the Participant and his Eligible Spouse must
      consent to the election. The normal form annuity cannot be waived after
      the commencement of benefits.

              

      

       

      The
election period for this section (c) is the 90-day period ending on the
Participant's Annuity Starting Date. The Annuity Starting Date for a
distribution in a form other than a Qualified Joint and Survivor Annuity may be
less than 30 days after receipt of the written explanation described in Section
7.5, provided:  (a) the Participant has been provided with information
that clearly indicates that the Participant has at least 30 days to consider
whether to waive the Qualified Joint and Survivor Annuity and elect (with
spousal consent) to a form of distribution other than a Qualified Joint and
Survivor annuity; (b) the Participant is permitted to revoke any affirmative
distribution election at least until the Annuity Starting Date or, if later, at
any time prior to the expiration of the 7-day period that begins the day after
the explanation of the Qualified Joint and Survivor Annuity is provided to the
Participant; and (c) the Annuity Starting Date is a date after the date that the
written explanation was provided to the Participant. The waiver must contain a
beneficiary designation and/or form of payment.  The

       

      
        
           

        

        
          40

          
            

          

        

        
           

        

      

      waiver
must also provide that the Eligible Spouse must consent, in writing, to any
subsequent change in beneficiary or form of payment.  The Participant
may revoke this waiver any time during the 90-day period ending on the Annuity
Starting Date.  The
Eligible Spouse's consent must be in writing and witnessed by a Plan
representative or Notary Public, and the Eligible Spouse's consent must
acknowledge the effect of the election.

       

      A single
Participant shall receive his benefit in the form of a life annuity, unless he
otherwise elects one of the optional forms of benefit payment provided in
Section 9.3.

       

      
        	
                9.3

              	
                Optional Forms of
      Benefit Payment -  Subject to Section 9.2 above and the
      limitations set forth in paragraph (e) below, a retiring Participant may
      elect to receive his retirement benefits under any one of the following
      forms:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                A
      life annuity, with no more payments after death of the
      Participant.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                A
      life annuity providing for 120, 180 or 240 minimum guaranteed monthly
      payments.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Any
      Qualified Joint and Survivor Annuity (as defined in Section 1.30) of
      either 50%, 75% or 100%.

              

      

       

      
        	
                 
      

              	
                (d)

              	
                A
      lump sum payment of the Actuarial Equivalent of a Participant's retirement
      benefit provided such lump sum (determined at the time distribution
      commences) does not exceed $5,000.  Notwithstanding the
      preceding sentence, for Plan Years beginning on or before August 5, 1997,
      any lump sum Actuarial Equivalent in excess of $3,500 shall not be
      distributed without the written consent of the Participant and the
      Participant's Eligible Spouse.

              

      

       

      Each
optional form of payment shall be Actuarial Equivalent of the "Normal Annuity
Form" of payment of retirement benefits.

       

      An
election of an optional form of payment under this Section 9.3 may be revoked by
the Participant at any time prior to the commencement of payments by making
another election with appropriate spousal consent.  Once payments have
begun under an optional form of payment, however, such election shall become
irrevocable, except as provided in Section 9.5 herein.

       

      
        	
                 
      

              	
                (e)

              	
                Limitation on
      Settlement Options:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                The
      provisions of this Plan shall be subject to the limitation that no
      Participant shall, prior to his retirement, elect an interest only
      option.  Distributions, if not made in a lump sum, may only be
      made over one of the following periods (or a combination
      thereof):

              

      

       

      
        	
                 
      

              	
                (i)

              	
                the
      life of the Participant,

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                the
      life of the Participant and a designated
  Beneficiary,

              

      

       

      
        
           

        

        
          41

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (iii)

              	
                a
      period certain not extending beyond the life expectancy of the
      Participant, or

              

      

       

      
        	
                 
      

              	
                (iv)

              	
                a
      period certain not extending beyond the joint and last survivor expectancy
      of the Participant and a designated
Beneficiary.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                A
      Participant may not elect an optional form of benefit which provides
      monthly benefits to his Eligible Spouse, or to a Beneficiary, unless the
      actuarial value of the payments expected to be made to the Participant at
      the time the payment is to commence is more than 50% of the actuarial
      value of the total payments expected to be made under such optional
      form.  In no event, however, can the amount of each monthly
      payment to a contingent annuitant or Beneficiary exceed that payable to
      the Participant.

              

      

       

      
        	
                 
      

              	
                (3)

              	
                Distributions
      from the Plan will be made in accordance with the requirements of the
      regulations under Code Section 401(a)(9) including the minimum
      distribution incidental benefit requirements of Section 1.401(a)(9)-2 of
      the proposed regulation.

              

      

       

      
        	
                9.4

              	
                Time of Payment of
      Benefits

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Unless
      a Participant elects otherwise, payment of benefits must begin no later
      than 60 days after the close of the Plan Year in which the latest of the
      following events occurs:

              

      

       

      
        	
                 
      

              	
                (1)

              	
                the
      Participant's attainment of age 65 or earlier Normal Retirement Age
      specified under the Plan,

              

      

       

      
        	
                 
      

              	
                (2)

              	
                the
      termination of the Participant's service with the
  Employer.

              

      

       

      Notwithstanding
the above, the failure of a Participant and Spouse to consent to a distribution
while a benefit is immediately distributable, within the meaning of the Plan,
shall be deemed to be an election to defer commencement of payment of any
benefit sufficient to satisfy this Section.  Consent of the
participant (and where applicable, such Participant's Spouse) shall be required
for any distribution which occurs prior to the later of age 62 or the
Participant’s Normal Retirement Age.

       

      
        	
                 
      

              	
                (b)

              	
                Age 701⁄2 Distributions
      (prior to January 1, 1997): Section 9.4(a)(2) notwithstanding,
      payment of the Accrued Benefit of a Participant must commence no later
      than the first day of April following the calendar year in which the
      Participant attains age 701⁄2.

              

      

       

      
        	
                 
      

              	
                (c)

              	
                Age 701⁄2 Distributions
      (effective for Plan Years beginning after December 31, 1996),
      subject to the provisions of Section
9.2.

              

      

       

      At the
election of the Participant payment of the Participant's Accrued Benefit may
commence on the later of April 1 of the calendar year following the calendar
year in which the Participant attains age 701⁄2 or retires, except that
benefit

       

      
        
           

        

        
          42

          
            

          

        

        
           

        

      

      distributions
to a 5-percent owner must commence by the April 1 of the calendar year following
the calendar year in which the participant attains age 701⁄2.

       

      Any
Participant, except 5-percent owners, attaining age 701⁄2 in years prior to 1997
may elect to stop distributions and recommence by the April 1 of the calendar
year following the year in which the Participant retires.  There is no
new Annuity Starting Date upon recommencement.

       

      A
Participant is treated as a 5-percent owner for purposes of this section if such
Participant is a 5-percent owner as defined in section 416(i) of the Code
(determined in accordance with section 416 but without regard to whether the
plan is top-heavy) at any time during the Plan Year.

       

      Once
distributions have begun to a 5-percent owner under this section, they must
continue to be distributed, even if the Participant ceases to be a 5-percent
owner in a subsequent year.

       

      Compliance with Code Section
401(a)(9).  The intent of this Section is that the beginning
dates and payment periods of benefits payable to each Participant and
beneficiary will be within the limitations permitted under Code Section
401(a)(9) and the regulations promulgated thereunder.  If there is any
discrepancy between this Section and Code Section 401(a)(9), that Code Section
will prevail.  Further, if there is any discrepancy between this
Section and any other provision of the Plan, this Section will
prevail.  It is the intent of this Plan to comply with the
requirements of the regulations under Code Section 401(a)(9) including the
minimum distribution incidental benefits rule.

       

      
        	
                9.5

              	
                Suspension of
      Benefits - If a Participant who is currently receiving monthly
      retirement payments returns to work for the Employer, and works for two hundred and
      fifty (250) or more Hours of Service during a calendar quarter, then any
      such monthly retirement payments shall be suspended.  The period
      of suspension shall continue until such Participant again terminates his
      employment.  At that time, benefit payments shall resume and
      shall be in the amount originally computed, unless the Participant's
      employment was sufficient to give him additional Years of Benefit
      Service.  If the Participant shall earn additional Years of
      Benefit Service, then his benefit shall be recomputed as of his subsequent
      termination date, taking into account all of his Years of Benefit Service,
      but shall be adjusted actuarially to reflect any benefits previously
      received.

              

      

       

      Furthermore,
in no event shall such recomputation of the Participant's Accrued Benefit cause
him to receive less in the way of monthly payments than what he was receiving
immediately prior to the time his retirement payments were
suspended.

       

      
        	
                9.6

              	
                Missing Persons
      - The administrator shall direct the Trustee to make a reasonable effort
      to locate all persons entitled to benefits under the Plan; however,
      notwithstanding any provisions in the Plan to the contrary, if, after a
      period of five (5) years from the date such benefit shall be due, any such
      persons entitled to benefits have not been located, their rights under the
      Plan shall become suspended.  Before  this provision
      becomes operative, the Trustee shall send a certified letter to all such
      persons at their last known
addresses

              

      

       

      
        
           

        

        
          43

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                advising
      them that their interest or benefits under the Plan shall be
      suspended.  Any such suspended amounts shall be held by the
      Trustee for a period of three (3) additional years (or a total of eight
      (8) years from the time the benefits first become payable), provided,
      however, that if a person subsequently makes a valid claim with respect to
      such suspended benefits, his right to benefits shall be
      reinstated.  Any such suspended amounts shall be handled in a
      manner not inconsistent with regulations issued by the Internal Revenue
      Service and Department of Labor.

              

      

       

      
        
           

        

        
          44

          
            

          

        

        
           

        

      

       

      ARTICLE
10

       

      RE-EMPLOYMENT
/ RESTORATION OF SERVICE AND ACCRUED BENEFITS

       

       

      
        	
                10.1

              	
                Eligibility for
      Participation:

              

      

       

      
        	
                 
      

              	
                (a)

              	
                No "Break-in-Service"
      has occurred

              

      

       

      
        	
                 
      

              	
                (1)

              	
                If
      a terminated Participant resumes employment before a Break-in-Service, he
      shall re-enter the Plan on his re-employment date, regardless of whether
      he had a vested benefit or not.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                If
      an Employee terminates employment during his initial Eligibility
      Computation Period and returns to work after the first date on which he
      would otherwise have become a Participant in the Plan, but prior to
      incurring a Break-in-Service, such Employee shall become a Participant on
      his date of re-employment, provided that he had completed 1,000 or more
      Hours of Service prior to his termination of employment.  If
      such Employee shall not have completed 1,000 or more Hours of Service
      prior to his termination of employment, his Eligibility Computation Period
      shall shift to the Plan Year which overlaps his initial employment year
      for purposes of measuring Hours of Service for eligibility to
      participate.

              

      

       

      
        	
                 
      

              	
                (b)

              	
                "Break-in-Service" has
      occurred

              

      

       

      
        	
                 
      

              	
                (1)

              	
                General Rule (Vested
      or Non-Vested Participant) - All Years of Service preceding a Break
      in Service shall be taken into account in computing an Employee's
      Qualifying Years of Service.  However, he will be required to
      complete one Year of Service, computed from date of re-employment, before
      combining post-break and pre-break service.  Upon the completion
      of a Year of Service measured from his date of re-employment, he will
      participate retroactively as of his date of
  re-employment.

              

      

       

      
        	
                 
      

              	
                (2)

              	
                Exception to the
      General Rule - In the case of an Employee who does not have a
      Vested Interest in his Accrued Benefit, Years of Service preceding a Break
      in Service shall not be taken into account in computing an Employee's
      eligibility to participate in the Plan if the number of consecutive 1-Year
      Breaks in Service equals or exceeds the greater of (a) five (5)
      consecutive 1-Year Breaks in Service, or (b) the aggregate number of Years
      of Service earned before the consecutive Breaks in
      Service.  Furthermore, the "aggregate number of Years of Service
      preceding the Break in Service" shall not include Years of Service which
      were not required to be taken into account under this Section by reason of
      any prior Break in Service.

              

      

       

      
        
           

        

        
          45

          
            

          

        

        
           

        

      

    

     

    
      	
              10.2

            	
              Vesting upon
      Re-Employment

            

    

     

    
      	
               
      

            	
              (a)

            	
              Vesting on
      Re-Employment Before a Break in Service - There is no effect on
      vesting if a Participant returns to work before a Break in Service
      occurs.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Vesting on
      Re-Employment after a Break in
Service

            

    

     

    
      	
               
      

            	
              (1)

            	
              General Rule (Vested
      or Non-Vested Participant) - Years of Service preceding a
      Break-in-Service shall be taken into account in computing an Employee's
      Years of Vesting Service.  However, the Employee will be
      required to complete one Year of Service before combining post-break and
      pre-break service.

            

    

     

    Upon the
completion of one Year of Service, the Employee will be given retroactive credit
and shall be considered to have
entered the Plan for purposes of benefit accrual and vesting as of the date of
his re-employment.

     

    
      	
               
      

            	
              (2)

            	
              Exception to the
      General Rule - In the case of an Employee who does not have a
      Vested Interest in his Accrued Benefit, Years of Service preceding a
      Break-in-Service shall not be taken into account in computing an
      Employee's vested benefits in the Plan if the number of consecutive 1-Year
      Breaks in Service equals or exceeds the greater of (a) five (5)
      consecutive 1-Year Breaks in Service, or (b) the aggregate number of Years
      of Service earned before the consecutive Breaks in
      Service.  Furthermore, the aggregate number of Years of Service
      preceding the Break-in-Service shall not include Years of Service which
      were not required to be taken into account under this Section by reason of
      any prior Break-in-Service.

            

    

     

    
      	
              10.3

            	
              Loss of Accrued
      Benefits if Employee has Received a
  Distribution

            

    

     

    
      	
               
      

            	
              (a)

            	
              Involuntary
      Cash-Outs - For purposes of determining an Employee's Accrued
      Benefit derived from Employer contributions under a Plan, the Plan may
      disregard service performed by the Employee with respect to
      which:

            

    

     

    
      	
               
      

            	
              (1)

            	
              The
      Employee received a distribution of the present value of his entire
      nonforfeitable benefit,

            

    

     

    
      	
               
      

            	
              (2)

            	
              The
      portion of such distribution which is attributable to the present value of
      the Employer-derived Accrued Benefit is not in excess of $5,000 ($3,500
      for Plan Years beginning before August 5,
1997).

            

    

     

    
      	
               
      

            	
              (3)

            	
              The
      distribution is made due to the termination of the Employee's
      participation in the Plan.

            

    

     

    A
distribution shall be deemed to be made due to the termination of an Employee's
participation in the Plan only if it is made by the end of the second (2nd) Plan
Year following his termination of employment.

     

    
      
        
           

        

        
          46

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (b)

            	
              Voluntary
      Cash-Outs - For purposes of determining an Employee's Accrued
      Benefit derived from Employer contributions under the Plan, the Plan may
      disregard service performed by the Employee with respect to
      which:

            

    

     

    
      	
               
      

            	
              (1)

            	
              The
      Employee receives a distribution of the present value of his entire
      nonforfeitable benefit attributable to such
  service,

            

    

     

    
      	
               
      

            	
              (2)

            	
              The
      Employee voluntarily elects to receive such distribution and the Participant's
      Spouse consents to such election, in accordance with Section 9.2,
      and

            

    

     

    
      	
               
      

            	
              (3)

            	
              The
      distribution is made on termination of the Employee's participation in the
      Plan.

            

    

     

    A
distribution shall be deemed to be made on termination of participation only if
it is made by the end of the second (2nd) Plan Year following the date of his
termination of employment.

     

    
      	
              10.4

            	
              Plan Repayment
      Provisions - If a Participant elects to have his Accrued Benefit,
      including all optional forms of benefits and subsidies relating to such
      benefits, restored based on service prior to a cash-out, he must repay the
      amount of the distribution, plus interest, to the Fund, before the earlier
      of (a) five (5) years after the first date on which the Participant is
      subsequently reemployed by the Employer, or (b) the date the Participant
      incurs five (5) consecutive 1-Year Breaks-in-Service following the date of
      distribution.  In order for repayment to be permitted, the
      following conditions must be met:

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      Participant must not have been 100% vested when he terminated and received
      a cash-out payment;

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      Participant must resume employment such that he will earn at least 1,000
      Hours of Service during any Plan
Year;

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      Participant must repay the amount of the cash-out payment with
      interest:

            

    

     

    
      	
               
      

            	
              (1)

            	
              Interest
      is charged at the rate of 5% per year up to the Plan Year which begins in
      1988;

            

    

     

    
      	
               
      

            	
              (2)

            	
              On
      and after the Plan Year beginning in 1988, interest is charged and
      compounded annually at the rate determined for purposes of Code Section
      411(c)(2)(C).

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      cash-out payment with interest must be repaid by the end of what would
      have been the fifth "Break in Service" year, had the Participant not been
      rehired, or if later, the fifth anniversary of his date of
      rehire.

            

    

     

    If any
one of the above conditions is not met, the Participant's Accrued Benefit will
not be restored, and any further Accrued Benefit will reflect only those Years
of Benefit Service earned after the Participant's re-employment
date.

     

    
      
        
           

        

        
          47

          
            

          

        

        
           

        

      

    

    

    The
preceding paragraph notwithstanding, however, Years of Vesting Service will be
granted for all prior years of employment (to the extent not previously
excluded) whether or not a Participant elects to restore his Accrued
Benefit.

     

    
      	
              10.5

            	
              Distribution -
      For purposes of this Article 10, a distribution shall be made in a lump
      sum.

            

    

     

    
      
        
           

        

        
          48

          
            

          

        

        
           

        

      

    

    

    ARTICLE
11

     

    TOP
HEAVY RULES

     

     

    
      	
              11.1

            	
              General
      Rule.  Notwithstanding  any provision herein to
      the contrary, for any Plan Year beginning after December 31, 1983, in
      which this Plan is determined to be a Top-Heavy Plan, the provisions of
      this Article 11 shall supersede any conflicting provision in the
      Plan.

            

    

     

    
      	
              11.2

            	
              Definitions.  For
      purposes of applying the provisions of this Article 11, and any other
      provisions of this Plan, the following definitions shall
      apply:

            

    

     

    
      	
               
      

            	
              (a)

            	
              "Compensation"
      shall have the same meaning as is set forth under Section 1.11 of the Plan
      and shall be limited under Code Section
  401(a)(17).

            

    

     

    
      	
               
      

            	
              (b)

            	
              "Determination
      Date" for any Plan Year is the last day of the preceding Plan Year
      or, in the case of the first Plan Year of the Plan, the last day of that
      Plan Year.  The present value of an Accrued Benefit as of the
      Determination Date is determined as of the most recent valuation date
      which is within the 12 month period ending on the Determination
      Date.  The assumptions used to determine the present value are
      those as found in Section 1.2.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Key
      Employee:  Any Employee or former Employee (and the
      Beneficiaries of such Employee) who at any time during any Plan Year
      contained in the determination period
was:

            

    

     

    
      	
               
      

            	
              (1)

            	
              an
      officer of the Employer whose annual Plan Year earnings exceed 50% of the
      annual benefit limit for defined benefit plans, as indexed, pursuant to
      Code Section 415(b)(1)(A) for the calendar year in which such Plan Year
      ends,

            

    

     

    
      	
               
      

            	
              (2)

            	
              one
      of the ten employees having annual compensation from the Employer for a
      Plan Year greater than the Defined Contribution Dollar Limitation in
      effect under Section 415(c)(1)(A) of the Code for the calendar year in
      which such Plan Year ends and owning (or considered as owning within the
      meaning of Section 318 of the Code) both more than 1/2 percent interest
      and the largest interests in the
Employer,

            

    

     

    
      	
               
      

            	
              (3)

            	
              a
      five percent Owner of the Employer,
or

            

    

     

    
      	
               
      

            	
              (4)

            	
              a
      one percent Owner of the Employer who has an annual Plan Year compensation
      of more than $150,000.

            

    

     

    The
determination period is the Plan Year containing the Determination Date and the
four preceding Plan Years.  The determination of who is a Key Employee
will be made by the Employer in accordance with Section 416(i)(1) of the Code
and the regulations thereunder.

     

    
      
        
           

        

        
          49

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (d)

            	
              Non-Key
      Employee  is an employee who does not meet the definition
      of Key Employee.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Permissive Aggregation
      Group  is the Required Aggregation Group, plus any other
      qualified plan or plans maintained by the Employer, but only if such plans
      as a group would satisfy in the aggregate the requirements of Code Section
      401(a)(4) and Code Section 410.  The Employer shall determine
      which plans to take into account in determining the Permissive Aggregation
      Group.

            

    

     

    
      	
               
      

            	
              (f)

            	
              Required Aggregation
      Group  means:

            

    

     

    
      	
               
      

            	
              (1)

            	
              Each
      qualified plan of the Employer in which at least one (1) Key Employee
      participates; and

            

    

     

    
      	
               
      

            	
              (2)

            	
              Any
      other qualified plan of the Employer which enables a plan described in (1)
      above to meet the requirements of Code Section 401(a)(4) or Code Section
      410.

            

    

     

    
      	
              11.3

            	
              Determination of
      "Top-Heavy" Status.

            

    

     

    
      	
               
      

            	
              (a)

            	
              If
      this Plan is the only qualified plan maintained by the Employer, the Plan
      is "top-heavy" for a Plan Year if the top-heavy ratio as of the
      Determination Date exceeds sixty percent
(60%).

            

    

     

    The
"top-heavy ratio" is a fraction (not to exceed 100%), the numerator of which is
the sum of the "present value of the cumulative Accrued Benefits" of all Key
Employees as of the Determination Date, plus any distributions made within the
five (5) year period immediately preceding the Determination Date, and the
denominator of which is a similar sum determined for all
Employees.  The term "present value of Accrued Benefits" shall mean
account balances where such term relates to Defined Contribution
Plans.

     

    The
top-heavy ratio shall be calculated without regard to the account balances
attributable to deductible voluntary Employee contributions, and without regard
to any Non-Key Employee who was formerly a Key Employee.  The
top-heavy ratio shall take into account distributions, rollovers and transfers,
in accordance with Code Section 416 and the regulations under that Code
section.

     

    For Plan
Years beginning after December 31, 1984, the present value of Accrued Benefits
of a Participant who has not performed any service with the employer maintaining
the plan during the five (5) year period ending on the determination date will
be disregarded.

     

    
      	
               
      

            	
              (b)

            	
              If
      the Employer maintains other qualified plans (including a Simplified
      Employee Pension plan) this Plan is top-heavy only if it is part of the
      Required
      Aggregation Group, and the top-heavy ratio for the Required
      Aggregation Group exceeds sixty percent (60%).  If such Required
      Aggregation Group is top-heavy, but an applicable Permissive Aggregation
      Group results in a ratio of 60% or less, this Plan shall not be top-heavy
      for such Plan Years upon such application,
  provided

            

    

     

    
      
        
           

        

        
          50

          
            

          

        

        
           

        

      

    

    

    this Plan
is a part of the Permissive Aggregation Group.  The top-heavy ratio
shall be calculated in the same manner as required by the first paragraph of
this Section 11.3, taking into account all plans within the Required Aggregation
Group.  The Employer shall determine the account balances and any
other amounts the Employer must take into account under Defined Contribution
plans or Simplified Employee Pension plans included within the group in
accordance with the terms of those plans, Code Section 416 and the regulations
thereunder.  The top-heavy ratio shall be calculated with reference to
the Determination Dates that fall within the same calendar year.  The
Required Aggregation Group shall include any plans of the Employer which were
terminated within the five-year period ending on the Determination
Date.

     

    
      	
               
      

            	
              (c)

            	
              Solely
      for the purpose of determining if this Plan, or any other plan included in
      a Required or Permissive Aggregation Group of which this Plan is a part,
      is Top-Heavy (within the meaning of Section 416(g) of the Code) the
      Accrued Benefit of an Employee other than a Key Employee (within the
      meaning of Section 416(i)(1) of the Code) shall be determined under (a)
      the method, if any, which is used for accrual purposes under all plans
      maintained by the Affiliated Employers, or (b) if there is no such method,
      as if such benefit accrued not more rapidly than the slowest accrual rate
      permitted under the fractional accrual rate of Section 411(b)(1)(C) of the
      Code.

            

    

     

    
      	
              11.4

            	
              Minimum Accrued
      Benefit.

            

    

     

    
      	
               
      

            	
              (a)

            	
              If
      this Plan is "top-heavy" in any Plan Year beginning after December 31,
      1983, the Employer guarantees a Non-Key Employee who is a Participant
      during the Plan Year and completes 1,000 Hours of Service, a minimum
      accrued benefit; provided, however, the minimum accrual provided herein
      applies even though the Non-Key Employee is not employed by the Employer
      on the last day of the Accrual of Benefit Computation Period or the Plan
      is integrated with Social Security.  For purposes of this
      paragraph, a Non-Key Employee Participant includes any Employee otherwise
      eligible to participate in the Plan but who is not a Participant because
      his Compensation does not exceed a specified
  level.

            

    

     

    The
"Minimum Accrued
Benefit" shall be determined without regard to any Social Security
contribution and shall be equal to 2% of "average compensation," multiplied by
the number of Years of Service (not to exceed 10 years).

     

    
      	
               
      

            	
              (b)

            	
              For
      purposes of this Section 11.4, "Years of
      Service" are as defined in Section 1.32 of the Plan, provided
      however, that Years of Service shall
exclude:

            

    

     

    
      	
               
      

            	
              (1)

            	
              all
      Years of Service completed in a Plan Year beginning before January 1,
      1984,

            

    

     

    
      	
               
      

            	
              (2)

            	
              all
      Years of Service completed in Plan Years in which this Plan was not
      top-heavy,

            

    

     

    
      
        
           

        

        
          51

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (3)

            	
              Plan
      Years during which the Employer did not maintain this Plan or a
      predecessor Plan, and

            

    

     

    
      	
               
      

            	
              (4)

            	
              Years
      of Service for Plan Years prior to the attainment of age
    18.

            

    

     

    
      	
               
      

            	
              (5)

            	
              Years
      of Service prior to the first day of the Plan Year containing the
      Participant’s Entry Date.

            

    

     

    
      	
               
      

            	
              (c)

            	
              (1)

            	
              For
      purposes of this Section 11.4, "average
      compensation" shall mean the average of the Compensation received
      for the highest five (5) consecutive Years of Service, except that years
      for this purpose shall not be taken into account if (i) such year ends in
      a Plan Year beginning before January 1, 1984, or (ii) such year begins
      after the close of the last Plan Year in which the Plan was
      top-heavy.

            

    

     

    
      	
               
      

            	
              (2)

            	
              In
      determining a Participant's "average compensation" for top heavy minimum
      benefits, if there shall not be five Years of Service from which to
      determine an average, then all Compensation earned by the Participant
      during the applicable top heavy years shall be considered in computing his
      average compensation, provided that he has completed at least 1,000 Hours
      of Service in each such year.  The average shall be taken over
      the total number of 1,000 hour years actually completed by the Employee
      during the period considered.

            

    

     

    
      	
               
      

            	
              (d)

            	
              If
      this Plan is Top-Heavy for any Plan Year, the Accrued Benefit of a Non-Key
      Employee who is a Participant during the Plan Year, shall be no less than
      the Minimum Accrued Benefit defined
herein.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Any
      benefit calculated pursuant to this Section 11.4 which is or may become
      payable to a Participant on Delayed Retirement must be actuarially
      increased for late commencement using the assumptions for Actuarial
      Equivalence as stated in Section
1.2.

            

    

     

    
      	
              11.5

            	
              Participation In More
      Than One Plan.  If a Non-Key Employee participates in a
      Top-Heavy Defined Contribution Plan maintained by the Employer, Section
      11.4 will not apply to the Non-Key Employee and the Defined Contribution
      Plan will provide the "minimum benefit accrual." to the exclusion of any
      other Defined Contribution Plan or Defined Benefit Plan of the
      Employer.

            

    

     

    
      	
              11.6

            	
              Limitation on
      Allocations.  If, during any Limitation Year, beginning
      prior to January 1, 2000, the Participant is a Participant in both a
      Defined Contribution plan and a Defined Benefit plan maintained by the
      Employer, the limitations of Article 4 will apply to such Participant with
      the following required changes:

            

    

     

    
      	
               
      

            	
              (a)

            	
              "1.0%"
      must be substituted for "1.25%" each place it appears in the definition of
      Defined Benefit Fraction and Defined Contribution Fraction under Article
      IV.

            

    

     

    
      	
               
      

            	
              (b)

            	
              "$41,500"
      must be substituted for "$51,875" in the Transition Fraction defined in
      Section 4.3(f)(6) herein.

            

    

     

    
      
        
           

        

        
          52

          
            

          

        

        
           

        

      

    

    

    The above adjustments shall
not be required if:

     

    
      	
               
      

            	
              (i)

            	
              Section
      11.4(a) is applied substituting "3%" for "2%";
  or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Employer contribution under the Employer's Defined Contribution Plan for
      each Participant who is not a Key Employee is 4% of such Participant's
      total compensation; and

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      present value of the cumulative Accrued Benefits under the Plan for
      Participants who are Key Employees does not exceed 90% of the present
      value of the total Accrued Benefits of all Participants;
    and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      sum of (i) the present value of the cumulative Accrued Benefits for Key
      Employees under all Defined Benefit plans in the Aggregation Group and
      (ii) the aggregate of the accounts of Key Employees under all Defined
      Contribution plans in the Aggregation Group does not exceed 90% of such
      sum determined for all Employees.

            

    

     

    
      	
              11.7

            	
              Minimum
      Vesting.  For any Plan Year in which the Plan is
      determined to be a Top-Heavy Plan pursuant to Section 11.3, each
      Participant's Accrued Benefit funded by the Employer shall become vested
      in accordance with the following
schedule:

            

    

     

    
      	
              Years of Vesting Service

            	 
      	
              Vesting Percentage

            
	
              Less
      than 3 years

            	 
      	
              0%

            
	
              3
      years or more

            	 
      	
              100%

            

    

    

    If the
Plan ceases to be Top-Heavy, the provisions of Section 8.2 shall thereafter
apply, subject to the right to elect under Section 19.2.

     

    Notwithstanding
the vesting schedule above, any Participant who shall have a nonforfeitable
Vested Interest in his Accrued Benefit, determined pursuant to Section 8.2
herein, which is greater than what the Top-Heavy schedule will provide, shall
not have his vested percentage reduced by the operation of this Section
11.7.

     

    
      
        
           

        

        
          53

          
            

          

        

        
           

        

      

    

    

    ARTICLE
12

     

    RETIREMENT
COMMITTEE

    

    

    
      	
              12.1

            	
              Except
      where otherwise specifically indicated, responsibility for administration
      of this Plan shall be reposed in a Retirement Committee composed of not
      less than three (3) individuals.  The members of the Committee
      shall be appointed by the Board of Directors of the
      Employer.  An individual shall not be ineligible to be a member
      of the Committee because he is or may be an officer, director or
      stockholder of the Employer or a Participant under the
    Plan.

            

    

     

    
      	
              12.2

            	
              The
      Committee shall hold meetings, upon such notice, at such place or places
      and at such time or times as it may from time to time
      determine.  Notice shall not be required if waived in
      writing.  A majority of the members of the Committee shall
      constitute a quorum for the transaction of business.  All
      resolutions or other actions taken by the Committee at any meeting shall
      be by vote of a majority of those present at any such meeting and entitled
      to vote.  Resolutions may be adopted or other action taken
      without a meeting upon written consent signed by at least two-thirds of
      the members of the Committee.

            

    

     

    
      	
              12.3

            	
              For
      convenience, the Committee may sign, or any member or members designated
      by the Committee may sign, any document as and in the name of the
      Committee.

            

    

     

    
      	
              12.4

            	
              The
      Committee shall appoint one of its members to act as its Chairman and may
      appoint a Secretary who need not be a member of the
    Committee.

            

    

     

    
      	
              12.5

            	
              No
      member of the Committee shall have any right to vote or decide upon any
      matter relating solely to himself or to any of his rights or benefits
      under any part of the Plan.

            

    

     

    
      	
              12.6

            	
              The
      decision of the Committee in matters within its jurisdiction shall be
      final, binding and conclusive upon the Company and upon any other person
      affected by such decision, subject to the claims procedure hereinafter set
      forth.

            

    

     

    
      	
              12.7

            	
              Any
      member of the Committee may resign at any time, and his successor shall be
      appointed by the Board.

            

    

     

    
      	
              12.8

            	
              The
      Board may remove at any time any member of the Committee appointed by it,
      provided, only that at the same time it appoints a successor
      member.

            

    

     

    
      	
              12.9

            	
              No
      fee or compensation shall be paid to any member of the Committee for his
      services as such.

            

    

     

    
      	
              12.10

            	
              Subject
      to the Claims Procedure set forth in Article 13 hereof, the Committee
      shall have the duty and authority to interpret at its discretion and
      construe the provisions of the Plan, to decide any disputes which may
      arise regarding the rights of Employees, whether or not they are
      Participants, under the terms of the Plan and any Trust Agreement which
      determinations

            

    

     

    
      
        
           

        

        
          54

          
            

          

        

        
           

        

      

    

    

    and rules
shall apply uniformly to all Employees similarly situated, and shall be binding
and conclusive upon all interested persons.

     

    
      	
              12.11

            	
              The
      Committee shall determine the eligibility of Employees to become
      Participants in accordance with the provisions of the Plan from the
      information furnished to it by the Company in accordance with the request
      of the Committee.

            

    

     

    
      	
              12.12

            	
              Any
      certification by the Employer of the information required or permitted to
      be certified by the Committee pursuant to the provisions of the Plan may
      be relied upon by the Committee until later shown to be
      incorrect.  The Committee may correct errors, and so far as
      practicable, may adjust any benefit or payment or credit
      accordingly.

            

    

     

    
      	
              12.13

            	
              A
      certification in writing by the Committee signed by the Chairman thereof,
      to the occurrence or happening of any event contemplated in this Plan, may
      be relied upon by the Trustee.

            

    

     

    
      	
              12.14

            	
              The
      Committee shall maintain full and complete records of  its
      deliberations and decisions.  Its records shall contain all
      relevant data pertaining to individual participating Employees and their
      rights under the Plan and in the Trust Fund.  It has the duty to
      carry into effect all such rights and benefits of each and to answer
      questions and assist Employees, whether Participants or other Employees,
      to obtain the greatest good from the existence of the Plan and the
      Trust.

            

    

     

    
      	
              12.15

            	
              The
      Committee must issue a Summary Plan Description to the
      Employees  describing the Plan.  In the event of any
      conflict between the terms of the Plan and the Summary Plan Description,
      the Plan shall control.

            

    

     

    
      	
              12.16

            	
              Although
      it is the present intention of the Employer to pay the reasonable expenses
      incident to the operation of the Plan, in the event such expenses are not
      paid by the Employer directly and aside from its contribution under the
      Plan, such expenses shall be deemed to be a charge upon the Plan
      assets.  If the Employer shall elect at any time or times, in
      any year or years, to pay part or all thereof, either directly or by
      reimbursement to the Trust Fund, any such election by the Employer in any
      year shall not bind the Employer as to its right to elect in respect to
      such expenses or any other expenses at any other time or
      times.  All requests, directions, requisitions and instructions
      of the Committee to the Trustee shall be in writing and signed by the
      Committee's Chairman or acting Chairman and by its Secretary or acting
      Secretary.

            

    

     

    
      	
              12.17

            	
              The
      principal provisions of the Plan shall be communicated to the Employees,
      and a copy of the Plan and other documents required by law, shall be
      available at the principal office of the Employer for inspection by the
      Employees at reasonable times.  The Committee shall exercise
      such authority and responsibility as it deems appropriate in order to
      comply with ERISA and other governmental regulations applying to this
      Plan, including maintaining records of Participants' service and benefits,
      and making any reports to Participants, the Internal Revenue Service, the
      Department of Labor, and other governmental entities not otherwise
      required of the Plan Administrator and
Trustee.

            

    

     

    
      
        
           

        

        
          55

          
            

          

        

        
           

        

      

    

    

    ARTICLE
13

     

    CLAIM
PROCEDURE

    

    

    
      	
              13.1

            	
              Filing a Claim for
      Benefits  Any claim for a Plan benefit hereunder shall be
      filed by a  Participant or Beneficiary (claimant) of this Plan
      on the form prescribed for such purpose with the Retirement Committee, or
      in lieu thereof, by written communication which is made by the claimant or
      the claimant's authorized representative which is reasonably calculated to
      bring the claim to the attention of the
  Committee.

            

    

     

    
      	
              13.2

            	
              Denial of
      Claim

            

    

     

    
      	
               
      

            	
              (a)

            	
              If
      a claim for a Plan benefit is wholly or partially denied, notice of the
      decision shall be furnished to the claimant by the Committee within a
      reasonable period of time after receipt of the claim by the
      Committee.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Any
      claimant who is denied a claim for benefit shall be furnished written
      notice setting forth:

            

    

     

    
      	
               
      

            	
              (1)

            	
              The
      specific reason or reasons for the
denial;

            

    

     

    
      	
               
      

            	
              (2)

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

            

    

     

    
      	
               
      

            	
              (3)

            	
              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;

            

    

     

    
      	
               
      

            	
              (4)

            	
              An
      explanation of the Plan's claim review
  procedure.

            

    

     

    
      	
              13.3

            	
              Claims Review
      Procedure

            

    

     

    
      	
               
      

            	
              (a)

            	
              In
      order that a claimant may appeal a denial of a claim, a claimant or his
      duly authorized representative:

            

    

     

    
      	
               
      

            	
              (1)

            	
              May
      request a review by written application to the Committee not later than 60
      days after receipt by the claimant of written notification of denial of a
      claim;

            

    

     

    
      	
               
      

            	
              (2)

            	
              May
      review pertinent documents; and

            

    

     

    
      	
               
      

            	
              (3)

            	
              May
      submit issues and comments in
writing.

            

    

     

    
      	
               
      

            	
              (b)

            	
              A
      decision on review of a denied claim shall be made not later than 60 days
      after receipt of a request for review, unless special circumstances
      require an extension of time for processing, in which case a decision
      shall be rendered within a reasonable period of time, but not later than
      120 days after receipt of a request for
review.

            

    

     

    
      
        
           

        

        
          56

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (c)

            	
              The
      decision on review shall be in writing and shall include the specific
      reason(s) for the decision and the specific reference(s) to the pertinent
      Plan provisions on which the decision is
based.

            

    

     

    
      
        
           

        

        
          57

          
            

          

        

        
           

        

      

    

    

    ARTICLE
14

     

    CONTRIBUTIONS
AND FUNDING

    

    

    
      	
              14.1

            	
              Basis of Contributions
      to Pension Plan or Trust - The Employer agrees to pay to the
      Insurer or Trustee for each Plan Year that amount, if any, which is deemed
      necessary by actuarial study to fund the Plan, but not less than the
      amount required under the Minimum Funding Standards of Section 412 of the
      Internal Revenue Code.

            

    

     

    
      	
              14.2

            	
              Return of Employer
      Contributions - Employer contributions to the Plan may not revert
      to the Employer. However, any contributions which are made to the Plan
      because of a good faith mistake of fact may be returned to the Employer
      within one (1) year after the payment of such contributions to the
      Plan.  In the event that the contribution is conditioned on the
      initial qualification of the Plan, a timely determination letter request
      has been filed properly and the Plan receives an adverse determination,
      then any contributions made to the Plan shall be returned to the
      Employer.

            

    

     

    If the
Internal Revenue Service disallows a deduction for all or any part of a
contribution made to this Plan which was made conditional on its deductibility,
the amount of the contribution, to the extent that it was disallowed shall be
returned to the Employer within one (1) year after the disallowance of the
deduction.  The Employer shall make application for the return of any
such contribution in accordance with Revenue Procedure 89-35, or other rules
which are or may become applicable.

     

    In
addition, any assets in excess of Plan liabilities at the termination of the
Plan shall be returned to the Employer as provided in Section 19.7.

     

    
      	
              14.3

            	
              An
      enrolled
      actuary shall be retained by the Plan.  Such actuary
      shall prepare an actuarial statement on an annual
  basis.

            

    

     

    
      	
              14.4

            	
              The
      provisions of this Article 14 shall be deemed the procedure for
      establishing and carrying out the funding policy and method of this
      Plan.  Such funding policy and method shall be consistent with
      the objectives of this Plan and with the requirements of Title I of the
      Employee Retirement Income Security Act of
1974.

            

    

     

    
      	
              14.5

            	
              No Voluntary Employee
      Contributions are Allowed.   Voluntary Contributions
      by a Participant of this Plan are not permitted.  Employee
      Contributions means contributions to the plan made by a Participant
      during the Plan Year.

            

    

     

    
      
        
           

        

        
          58

          
            

          

        

        
           

        

      

    

    

    ARTICLE
15

     

    ADMINISTRATIVE
AND FIDUCIARIES' RESPONSIBILITIES

    

    

    Except
for prohibitions to the contrary in ERISA, no named fiduciary under the Plan
shall be liable for any act or omission of another which act or omission occurs
outside the scope of the respective fiduciaries designated area(s) of
responsibility as hereinafter stated.  The named fiduciaries and their
respective areas of responsibility for the operation and administration of the
Plan are as follows:

     

    
      	
              15.1

            	
              Board of Directors of
      Employer

            

    

     

    
      	
               
      

            	
              (a)

            	
              Terminating
      Plan;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Amending
      Plan;

            

    

     

    
      	
               
      

            	
              (c)

            	
              Appointment
      of Retirement Committee.

            

    

     

    
      	
              15.2

            	
              Employer - The
      Employer shall have the following responsibilities and
    powers:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Funding Policy
      - The Employer shall, in consultation with an enrolled actuary, determine
      the funding policy of the Plan and communicate it to the Trustee so that
      the Trustee may coordinate investment policy with the needs of the
      Plan.  The Employer may delegate such responsibility and
      authority to the Plan Administrator, the Trustee or any other
      person.  The Employer may enter into a Group Annuity Contract
      with any Insurer for the purpose of accumulating Plan
    assets.

            

    

     

    As part
of the funding policy, it shall also be the responsibility of the Employer to
make any and all contributions required to keep the pension trust fund
actuarially sound at all times.  For this purpose, the Employer shall
engage the services of an enrolled actuary.

     

    
      	
               
      

            	
              (b)

            	
              Appointment of Plan
      Administrator - The Employer is the named Plan
      Administrator.  The Employer may, however, delegate such
      function by appointing any person or any number of persons to administer
      the Plan as provided in Article 12.  In the event of such
      appointment, the person or persons so appointed shall be the successor
      Plan Administrator.  Any person or persons so appointed may be
      removed by the Employer upon thirty (30) days written notice unless a
      shorter period is agreed to.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Appointment of
      Investment Manager - The Employer may, in its discretion, appoint
      an Investment Manager to manage the assets of the Plan.  In such
      event, since the Trustee will not have exclusive discretion to manage and
      control the Plan assets, the Trustee will not be liable for any act or
      omission of such Investment
  Manager.  Plan

            

    

     

    
      
        
           

        

        
          59

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              assets
      can also be invested with any licensed insurance company under a Group
      Annuity Contract.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Review of
      Fiduciaries - The Employer shall periodically review the
      performance of any fiduciary or any other person to whom any duties have
      been delegated.

            

    

     

    
      	
              15.3

            	
              Plan
      Administrator - The Plan Administrator shall have the following
      responsibilities and powers:

            

    

     

    
      	
               
      

            	
              (a)

            	
              General Powers
      - The Plan Administrator shall administer the Plan in accordance with its
      terms and shall have all the powers necessary to carry out the provisions
      of the Plan.  The Administrator shall interpret the Plan and
      shall determine all questions, including questions of eligibility under
      Article 2, arising in the interpretation, administration and application
      of the Plan.  Any such determination shall be conclusive and
      binding on all persons except as otherwise provided herein or by
      law.  Any exercise of discretion by the Plan Administrator shall
      be exercised in a nondiscriminatory
manner.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Procedures, Records
      and Reports - The Plan Administrator shall establish operating
      procedures and shall keep a record of his actions, as well as all books of
      account, records or other data necessary for the administration of the
      Plan and/or required by law or regulations issued pursuant to such
      law.  The Plan Administrator shall prepare and file or publish
      with the Secretary of Labor or the Secretary of the Treasury, or to any
      other official or agency as may hereafter be required, all reports,
      documents or other information as may be required under law to be so filed
      or published.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Directions to
      Trustee - The Plan Administrator shall notify the Trustee or
      Insurer in writing of any action the Plan Administrator in its discretion
      desires the Trustee or Insurer to take and the Trustee or Insurer shall be
      entitled to and obligated to rely on such directions until such time as
      the Plan Administrator shall file a written revocation of such direction
      with the Trustee or Insurer, or unless the Trustee or Insurer knows that
      any such direction constitutes a breach of the Plan Administrator's
      fiduciary obligations, in which case the Trustee or Insurer may take
      reasonable steps under the circumstances to remedy such
      breach.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Agents and
      Counsel - The Plan Administrator may engage agents to assist him in
      his duties, and may consult with counsel, actuaries, accountants,
      specialists and other persons as he deems necessary or
      desirable.  The Plan Administrator shall be indemnified by the
      Employer with respect to any action taken or omitted by him in good faith
      reliance on the advice of such persons, provided that the Plan
      Administrator has acted prudently in selecting or retaining such persons,
      to which end he shall periodically review such person's
      performance.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Expenses - The
      Trustee shall be authorized to pay from the Trust all expenses of
      administration including, but not limited to, the payment of professional
      fees of

            

    

     

    
      
        
           

        

        
          60

          
            

          

        

        
           

        

      

    

    

    consultants,
actuaries, accountants, counsel, investment advisors and other specialists,
unless the Employer elects to pay such expenses.

     

    
      	
               
      

            	
              (f)

            	
              Reports Furnished
      Participants - The Plan Administrator shall furnish to each Plan
      Participant, and to each Beneficiary receiving benefits under the Plan,
      within the time limits specified in the Code and ERISA, each of the
      following:

            

    

     

    
      	
               
      

            	
              (1)

            	
              A
      Summary Plan Description and periodic
revision;

            

    

     

    
      	
               
      

            	
              (2)

            	
              Notification
      of amendments to the Plan; and

            

    

     

    
      	
               
      

            	
              (3)

            	
              A
      Summary Annual Report which summarizes the Annual Report filed with the
      Department of Labor.

            

    

     

    
      	
               
      

            	
              (g)

            	
              Reports Available to
      Participants - The Plan Administrator shall make copies of the
      following documents available at the principal office of the Employer for
      examination by any Plan Participant or
  Beneficiary:

            

    

     

    
      	
               
      

            	
              (1)

            	
              The
      Pension Plan and Trust Agreement;

            

    

     

    
      	
               
      

            	
              (2)

            	
              The
      Summary Plan Description; and

            

    

     

    
      	
               
      

            	
              (3)

            	
              The
      latest annual report.

            

    

     

    
      
        
           

        

        
          61

          
            

          

        

        
           

        

      

    

    

    ARTICLE
16

     

    INCOME
TAX REGULATIONS 1.401-4(c)(2)

    

    

    
      	
              16.1

            	
              If
      Employer contributions under this Plan are used for the benefit of an
      Employee who is among the 25 highest paid Employees of the Employer as of
      the effective date of this Plan, and whose anticipated annual pension
      under this Plan exceeds $1,500, then, upon the occurrence of the
      conditions described in Section 16.2, the Employer contributions which are
      used for the benefit of any such Employee are restricted in accordance
      with Section 16.3.

            

    

     

    
      	
              16.2

            	
              The
      restrictions described in Section 16.3 become applicable
    if:

            

    

     

    
      	
               
      

            	
              (a)

            	
              This
      Plan is terminated within 10 years after its
  establishment.

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      benefits of an Employee described in Section 16.1 become payable within 10
      years after the effective date of this Plan,
or

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      benefits of an Employee described in Section 16.1 become payable after the
      Plan had been in effect for 10 years, and the full current costs of the
      Plan for the first 10 years have not been
  funded.

            

    

     

    In the
case of an Employee described in (b) of this Section, the restrictions will
remain applicable until the Plan has been in effect for 10 years, but if at that
time the full current costs have been funded, the restrictions will no longer
apply to the benefits payable to such an Employee.  In the case of an
Employee described in (b) or (c) of this Section, if at the end of the first 10
years the full current costs are not met, the restrictions will continue to
apply until the full current costs are funded for the first time.

     

    
      	
              16.3

            	
              The
      restrictions required under Section 16.1 provide that the Employer
      contributions which may be used for the benefit of an Employee described
      in such Section 16.1 shall not exceed the greater of $20,000, or 20% of
      the first $50,000 of the annual compensation of such Employee multiplied
      by the number of years between the effective date of this Plan
      and

            

    

     

    
      	
               
      

            	
              (a)

            	
              The
      date of the termination of this
Plan,

            

    

     

    
      	
               
      

            	
              (b)

            	
              In
      the case of an Employee described in Section 16.2(b), the date the benefit
      of the Employee becomes payable, if before the date of the termination of
      this Plan, or

            

    

     

    
      	
               
      

            	
              (c)

            	
              In
      the case of an Employee described in Section 16.2(c), the date of the
      failure to meet the full current costs of this
  Plan.

            

    

     

    However,
if the full current costs of this Plan have not been met on the date described
in (a) or (b) of this Section, whichever is applicable, then the date of the
failure to meet such full current costs shall be substituted for the date
referred to in (a) or (b) of this Section.

     

    
      
        
           

        

        
          62

          
            

          

        

        
           

        

      

    

    

    For
purposes of determining the contributions which may be used for the benefit of
an Employee when (b) of this Section applies, the number of years taken into
account may be recomputed for each year, if the full current costs of the Plan
are met for such year.

     

    
      	
              16.4

            	
              For
      purposes of this Article, the Employer contributions, which, at a given
      time, may be used for the benefits of an Employee, include any unallocated
      funds which would be used for his benefits if this Plan were then
      terminated or the Employee were then to withdraw from this Plan, as well
      as all contributions allocated up to that time exclusively for his
      benefits.

            

    

     

    The
provisions of this Article apply to a former or retired Employee of the
Employer, as well as to an Employee still in the Employer's
service.

     

    The
following terms are defined for purposes of this Article 16:

     

    
      	
               
      

            	
              (a)

            	
              The
      term "benefits" includes any periodic income, any withdrawal values
      payable to a living Employee, and the cost of any death benefits which may
      be payable after retirement on behalf of an Employee, but does not include
      the cost of any death benefits with respect to an Employee before
      retirement or the amount of any death benefits actually payable after the
      death of an Employee, whether such death occurs before or after
      retirement.

            

    

     

    
      	
               
      

            	
              (b)

            	
              The
      term "full current costs" means the normal cost, as defined in Code
      Section 1.404(a)-6, for all years since the effective date of the Plan,
      plus any interest on the unfunded liability during such
      period.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      term "annual compensation" of an Employee means either such Employee's
      average regular annual compensation, or such average compensation over the
      last five years, or such Employee's last annual compensation if such
      compensation is reasonably similar to his average regular annual
      compensation for the five preceding
years.

            

    

     

    In the
event of a substantive amendment to this Plan and Trust, the provisions of this
Article 16 shall apply to the increased benefits resulting from such substantive
amendment from the effective date of such amendment.

     

    
      	
              16.5

            	
              Notwithstanding
      anything to the contrary contained in this Article 16, the following
      provisions shall apply for Plan Years beginning on or after January 1,
      1992.  In the event of plan termination, the benefit of any
      highly compensated active or former Employee is limited to a benefit that
      is nondiscriminatory under Section 401(a)(4) of the
  Code.

            

    

     

    Benefits
distributed to any of the 25 most highly compensated active and former highly
compensated employees are restricted such that the annual payments are no
greater than an amount equal to the payment that would have been made on behalf
of the employee

     

    
      
        
           

        

        
          63

          
            

          

        

        
           

        

      

    

    

    under a
single life annuity that is the Actuarial Equivalent of the sum of the
Employee's Accrued Benefit and the Employee's other benefits under the
Plan.

     

    The
preceding paragraph shall not apply if (a) after payment of the benefit to an
Employee described in the preceding paragraph, the value of plan assets equals
or exceeds 110% of the value of current liabilities, as defined in Section
412(l)(7) of the Code, or (b) the value of the benefits for an Employee
described above is less than 1% of the value of current
liabilities.

     

    For
purposes of this Section, benefit includes loans in excess of the amount set
forth in Section 72(p)(2)(A) of the Code, any periodic income, any withdrawal
values payable to a living Employee, and any death benefits not provided for by
insurance on the Employee's life.

     

    For the
purposes of this Section 16.5, a "highly compensated active or former Employee"
shall mean any Employee who

     

    
      	
               
      

            	
              (i)

            	
              was
      a 5% owner (as defined under Code Section 416(i)(1)(A)(iii)) during the
      determination year or look back year,
or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              earned
      more than $80,000 (as adjusted by a Cost of Living Index under Code
      Section 415(d) as approved by the Secretary of the Treasury) during the
      preceding Plan Year.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              The
      determination of whether a former Employee is a former Highly Compensated
      Employee shall be made in accordance with (i) and (ii)
    above.

            

    

     

    For Plan
Years beginning before January 1, 1998, and for the purposes of (ii) above,
“compensation” shall not include any contributions made on behalf of an Employee
pursuant to Code Sections 125, 402(e)(3), 402(h)(1)(B) or salary
deferrals.  For Plan Years beginning after December 31, 1997 and for
the purposes of (ii) above, “compensation” shall include deferrals made on
behalf of the Employee pursuant to Code Section 125, 402(g), or 457, and for
Plan Years beginning after December 31, 2000, Code Section 132(f).

     

    
      
        
           

        

        
          64

          
            

          

        

        
           

        

      

    

    

    ARTICLE
17

     

    SPENDTHRIFT

    

    

    
      	
              17.1

            	
              No
      Participant under this Plan shall have any legal right, title or interest
      in the Plan or Trust.  The interest of any Participant,
      beneficial or otherwise, shall be limited to that provided in the Plan and
      no designated Beneficiary shall have any greater rights than as provided
      by this Plan.

            

    

     

    
      	
              17.2

            	
              Except
      to the extent permitted by law, the Participant may not anticipate,
      encumber, alienate or assign any of his rights, claims, or interests in
      this Plan or any part thereof.  No payments, benefits, or rights
      arising by reason of this Plan shall in any way be subject to the
      Participant's debts, contracts, or engagements, or to any judicial
      processes to levy upon or attach the same for payment
    thereof.

            

    

     

    
      	
              17.3

            	
              Qualified Domestic
      Relations Order – No violation of the non-alienation provisions of
      ERISA occurs where a portion of the benefits of a Participant is required
      to be paid to the Participant’s Spouse pursuant to a Qualified Domestic
      Relations Order.  A “Qualified Domestic Relations Order” is a
      judgment or decree (including approval of a property settlement agreement)
      that relates to the provisions of child support, alimony payments or
      marital property, rights to a spouse, former spouse, child or other
      dependent of a Participant and is made pursuant to a state domestic
      relations law.  The Qualified Domestic Relations Order may not
      alter the amount or the form of plan benefits.  The Qualified
      Relations Order shall conform to all the criteria found in Code Section
      414(p).

            

    

     

    
      	
              17.4

            	
              Offset of a
      Participant's Accrued Benefit - Pursuant to Code Section
      401(a)(13)(C), the offset of a Participant's Accrued Benefit in the Plan
      will not violate ERISA's prohibition against assignment or alienation of
      benefits if the Participant is ordered or required on or after August 5,
      1997 to pay under:

            

    

     

    
      	
               
      

            	
              (a)

            	
              a
      judgment or conviction for a crime involving the
  Plan;

            

    

     

    
      	
               
      

            	
              (b)

            	
              a
      civil judgement (including a consent order or decree) entered by a court
      in an action brought in connection with a violation (or alleged violation)
      of ERISA's fiduciary responsibility provisions;
  or

            

    

     

    
      	
               
      

            	
              (c)

            	
              a
      settlement agreement between the Department of Labor or the Pension
      Benefit Guaranty Corporation and the Participant in connection with a
      violation or alleged violation of ERISA's fiduciary responsibility
      provisions by a fiduciary or any other person; provided such judgement,
      order, decree or settlement agreement expressly provides for such
      offset.

            

    

     

    To the
extent that Code Sections 401(a)(11) and 417 apply to this Plan, the rights of a
Participant's spouse under Code Section 401(a)(13)(C)(iii) are hereby
incorporated by reference.

     

    
      
        
           

        

        
          65

          
            

          

        

        
           

        

      

    

    

    ARTICLE
18

     

    THE
INSURER

    

    

    
      	
              18.1

            	
              Not Party to
      Agreement - No Insurer shall be considered to be a party to this
      Plan or to have any responsibility for the validity of this Plan, or for
      any action taken by the Employer or Trustee.  The Insurer shall
      be fully protected in accepting payments from the Employer or Trustee and
      in making payments of any amounts to the Trustee, Employer, Plan
      Participant, or Beneficiary, in accordance with instructions from the
      Trustee or Employer, without liability to see to the application of such
      payments.

            

    

     

    
      	
              18.2

            	
              The
      Insurer shall be fully protected from any liability in assuming that the
      Plan has not been amended or terminated until notice of any amendment or
      termination of the Plan has been received by the Insurer at its home
      office.  No amendment to the Plan shall deprive the Insurer of
      any protection except as to policies issued by it after receipt at its
      home office of notice of the terms of such
  amendment.

            

    

     

    
      	
              18.3

            	
              The
      Insurer shall be fully protected in dealing with the Trustee or Employer
      according to the latest notification received by the Insurer at its home
      office.  For purposes of this Article, Trustee shall mean any
      one or more of the Trustees under this Plan, whether individual or
      corporate, or any officer of the
Employer.

            

    

     

    
      
        
           

        

        
          66

          
            

          

        

        
           

        

      

    

    

    ARTICLE
19

     

    AMENDMENT
AND TERMINATION

    

    

    
      	
              19.1

            	
              Application for
      Determination Letter - The Employer shall timely submit this Plan
      and all necessary supporting documents to the Internal Revenue Service
      with the request for a Determination Letter that the Plan as embodied in
      this Agreement meets the qualification requirements of the
      Code.

            

    

     

    
      	
              19.2

            	
              Amendment -
      This Plan, and each of its provisions, may be amended at any time and from
      time to time, as follows:

            

    

     

    
      	
               
      

            	
              (a)

            	
              All
      proposed amendments shall be set forth in a written instrument, detailing
      any and all changes to the Plan.

            

    

     

    
      	
               
      

            	
              (b)

            	
              All
      proposed amendments shall be presented to the Board of Directors for its
      consideration and shall be enacted by a vote of the Board of
      Directors.

            

    

     

    
      	
               
      

            	
              (c)

            	
              All
      actions taken by the Board of Directors shall be set forth in enabling
      documentation (e.g., minutes of meetings setting forth appropriate
      resolutions adopted therein or appropriate certification of actions taken
      by the Board of Directors in lieu of a formal
  meeting).

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      Board of Directors shall authorize, in the documentation referred to under
      (c), above, an officer or officers of the Employer to execute said
      amendment or amendments on behalf of the Employer and to certify as to the
      date on which the steps set forth under (a), (b) and (c) took place (e.g.,
      a Certificate of Resolution).

            

    

     

    
      	
               
      

            	
              (e)

            	
              If
      an amendment provides for a significant reduction in the rate of future
      benefit accruals, the Plan Administrator shall provide a written notice,
      not less than 15 days prior to the effective date of the amendment,
      setting forth the Plan amendment and its effective date,
    to:

            

    

     

    
      	
               
      

            	
              (1)

            	
              each
      participant in the Plan,

            

    

     

    
      	
               
      

            	
              (2)

            	
              each
      beneficiary who is an alternate payee (within the meaning of ERISA Section
      206(d)(3)(K)) under an applicable qualified domestic relations order
      (within the meaning of ERISA Section 206(d)(3)(B)(i)0,
  and

            

    

     

    
      	
               
      

            	
              (3)

            	
              each
      employee organization representing Participants in the
    Plan.

            

    

     

    
      	
               
      

            	
              (f)

            	
              Any
      amendment:

            

    

     

    
      	
               
      

            	
              (1)

            	
              shall
      not reduce the vested benefit of a Participant determined as of the later
      of the date such amendment is adopted, or the date such amendment becomes
      effective;

            

    

     

    
      
        
           

        

        
          67

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (2)

            	
              shall
      not revise the vesting schedule under the Plan unless each Participant
      having three (3) or more Years of Vesting Service is permitted to elect
      within a reasonable period after the adoption of such amendment to have
      his vested benefit computed under the Plan without regard to such
      amendment; a reasonable period for purposes of this Section shall be a
      period which begins no later than the date the Plan amendment is adopted
      and ends no later than the last to occur of the
  following:

            

    

     

    
      	
               
      

            	
              (i)

            	
              sixty
      (60) days after the date the Plan amendment is
  adopted.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              sixty
      (60) days after the day on which the Plan amendment becomes
      effective.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              sixty
      (60) days after a Participant is issued written notice of the Plan
      amendment.

            

    

     

    In the
event of a change in the vesting schedule, the nonforfeitable percentage of the
Participant's Accrued Benefit at the time of the change shall not be less than
that percentage computed prior to the change.

     

    
      	
               
      

            	
              (3)

            	
              shall
      not allow for the use of funds or assets held under this Plan other than
      for the benefit of Participants or their Beneficiaries, nor shall any
      amendment provide that any funds or assets of this Plan shall ever revert
      to or be used or enjoyed by the
Employer;

            

    

     

    
      	
               
      

            	
              (4)

            	
              shall
      not deprive an Insurer of any of its exemptions and immunities with
      respect to policies issued by it prior to receipt by an Insurer of notice
      of such amendment;

            

    

     

    
      	
               
      

            	
              (5)

            	
              shall
      not amend the Plan if such amendment would violate the provisions of any
      applicable law, or any regulations.

            

    

     

    
      	
               
      

            	
              (6)

            	
              shall
      not become effective prior to approval by the Secretary of Labor, if such
      approval is required under applicable law or
  regulation.

            

    

     

    No
amendment to the Plan (including a change in the actuarial basis for determining
optional or early retirement benefits) shall be effective to the extent that it
has the effect of decreasing a Participant's Accrued
Benefit.  Notwithstanding the preceding sentence, a Participant's
Accrued Benefit may be reduced to the extent permitted under Code Section
412(c)(8).  For purposes of this paragraph, a plan amendment which has
the effect of (1) eliminating or reducing an early retirement benefit or a
retirement-type subsidy, or (2) eliminating an optional form of benefit, with
respect to benefits attributable to service before the amendment shall be
treated as reducing Accrued Benefits except as otherwise
permitted.  In the case of a retirement-type subsidy, the preceding
sentence shall apply only with respect to a Participant who satisfied (either
before or after the amendment) the pre-amendment conditions for the
subsidy.  In general, a retirement-type subsidy is a subsidy that
continues after retirement, but does not include a qualified disability
benefit,

     

    
      
        
           

        

        
          68

          
            

          

        

        
           

        

      

    

    

    a medical
benefit, a social security supplement, a death benefit (including life
insurance), or a plant shutdown benefit (that does not continue after retirement
age).

     

    
      	
              19.3

            	
              Termination -
      While it is the intention of the Employer to continue this Plan and
      contributions hereunder indefinitely, the Employer reserves the right to
      terminate this Plan at any time, as
follows:

            

    

     

    
      	
               
      

            	
              (a)

            	
              A
      proposal to terminate the Plan shall be set forth in a written instrument,
      detailing said action to the Board of
Directors.

            

    

     

    
      	
               
      

            	
              (b)

            	
              A
      proposal to terminate the Plan shall be presented to the Board of
      Directors for its consideration and shall be enacted by a vote of the
      Board of Directors.

            

    

     

    
      	
               
      

            	
              (c)

            	
              All
      actions taken by the Board of Directors to terminate the Plan shall be set
      forth in enabling documentation (e.g., minutes of meetings setting forth
      appropriate resolutions adopted therein or appropriate certification of
      actions taken by the Board of Directors in lieu of a formal
      meeting).

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      Board of Directors shall authorize, in the documentation referred to under
      (c), above, an officer or officers of the Employer to execute such
      instruments and take such actions as are necessary to effectuate the
      termination of the Plan on behalf of the Employer and to certify as to the
      date on which the steps set forth under (a), (b) and (c) took place (e.g.,
      a Certificate of Resolution).

            

    

     

    
      	
               
      

            	
              (e)

            	
              Subsequent
      to the actions set forth under (a), (b), (c) and (d), above, the Plan
      Administrator shall provide all affected parties a written notice of
      intent to terminate, not less than 60 days prior to the proposed
      termination date, stating that such termination is intended and the
      proposed termination date.

            

    

     

    
      	
               
      

            	
              (f)

            	
              If
      the termination is a Standard Termination, as set forth under ERISA
      Section 4041, the Plan Administrator shall follow the procedures set forth
      under ERISA Section 4041(b) and the regulations thereunder, as they be
      amended from time to time.

            

    

     

    
      	
               
      

            	
              (g)

            	
              If
      the termination is a Distress Termination, as set forth under ERISA
      Section 4041, the Plan Administrator shall follow the procedures set forth
      under ERISA Section 4041(c) and the regulations thereunder, as they be
      amended from time to time.

            

    

     

    Such
termination shall become effective pursuant to the rules and regulations set
forth under this Section, or applicable provisions of ERISA and the regulation
thereunder, incorporated herein by reference.

     

    This Plan
shall terminate if the Employer shall be dissolved, deemed bankrupt, or
insolvent, or shall be merged with another company, except that in the event of
dissolution, merger or consolidation of the Employer, provisions may be made by
a successor for the continuance of this Plan, and the successor shall in such
event be substituted in the place of the present Employer by an instrument
authorizing such

     

    
      
        
           

        

        
          69

          
            

          

        

        
           

        

      

    

    

    substitution
executed by the Employer and the successor, a copy of which shall be delivered
to the Plan Administrator.

     

    
      	
              19.4

            	
              Vesting Upon Complete
      or Partial Termination - Upon complete termination of this Plan, or
      upon partial termination of the Plan, the Accrued Benefit of each affected
      Participant as of the date of termination shall be
      nonforfeitable.

            

    

     

    
      	
              19.5

            	
              Procedure for
      Termination - Prior to any termination of this Plan by the
      Employer, all required notices shall be filed with the Pension Benefit
      Guaranty Corporation as such corporation is established under ERISA
      Section 4001 and no amounts under the termination procedure shall be paid
      until the time period expires for the Pension Benefit Guaranty Corporation
      to issue a notice of noncompliance nullifying a proposed
      termination.

            

    

     

    
      	
              19.6

            	
              Allocation of
      Assets  If this Plan is terminated and is subject to the
      rules governing Plan terminations as promulgated by the Pension Benefit
      Guaranty Corporation, then the following method shall be used for the
      allocation of assets:

            

    

     

    
      	
               
      

            	
              (a)

            	
              After
      Notice by the Plan Administrator to the Pension Benefit Guaranty
      Corporation that the Plan is to be terminated and upon expiration of the
      time period for the Pension Benefit Guaranty Corporation to issue a notice
      of noncompliance nullifying a proposed termination, the Plan Administrator
      shall allocate the assets of the Plan in accordance with ERISA Section
      4044, in the order set forth below, to the extent the assets are available
      to provide benefits to Plan Participants and Beneficiaries.  The
      Administrator or Trustee shall make the allocation as
    follows:

            

    

     

    FIRST, to
that portion of each individual's Accrued Benefit which is derived from the
Participant's contributions to the Plan which were not mandatory contributions
(Voluntary Contributions).

     

    SECOND,
to that portion of each individual's Accrued Benefit which is derived from the
Participant's mandatory contributions.

     

    THIRD,
equally among Participants in the following two subcategories:

     

    
      	
               
      

            	
              (1)

            	
              In
      the case of the benefit of a Participant or Beneficiary, which was in pay
      status as of the beginning of the three (3) year period ending on the
      termination date of the Plan, to each such benefit, based on the
      provisions of the Plan (as in effect during the five (5) year period
      ending on such date) under which such benefit would be the
      least.

            

    

     

    
      	
               
      

            	
              (2)

            	
              In
      the case of a Participant's or Beneficiary's benefit (other than a benefit
      described in (1) above) which would have been in pay status as of the
      beginning of such three (3) year period if the Participant had retired
      prior to the beginning of the three (3) year period and if his benefits
      had commenced (in the normal form of annuity under the Plan) as of the
      beginning of such period, to each such benefit based on the provisions of
      the Plan (as in effect during the five (5) year period ending on such
      date) under which such benefit would be the
  least.

            

    

     

    
      
        
           

        

        
          70

          
            

          

        

        
           

        

      

    

    

    For the
purpose of (1) above, the lowest benefit in pay status during a three (3) year
period shall be considered the benefit in pay status for such
period.

     

    FOURTH,
to all other benefits (if any) of individuals under the Plan guaranteed under
the termination insurance provisions of the Employee Retirement Income Security
Act of 1974.

     

    FIFTH, to
all other nonforfeitable benefits under the Plan.

     

    SIXTH, to
all other benefits under the Plan.

     

    
      	
               
      

            	
              (b)

            	
              If
      the assets available for allocation under any priority category (other
      than the fifth and sixth priority categories) are insufficient to satisfy
      in full the benefits of all individuals, the assets shall be allocated pro
      rata among such individuals on the basis of the present value (as of the
      termination date) of their respective
benefits.

            

    

     

    
      	
               
      

            	
              (c)

            	
              If
      any assets of the Plan attributable to Employee contributions remain after
      all liability of the Plan to Participants and their Beneficiaries has been
      satisfied, such assets shall be equitably distributed to the Employees who
      made such contributions (or their Beneficiaries) in accordance with their
      rate of contributions.

            

    

     

    
      	
              19.7

            	
              Amounts
      allocated to any person shall be paid in cash, through the purchase of
      immediate or deferred annuities or by periodic payments, as the Committee
      may determine.  Any assets remaining, after providing in full
      for the amounts required by this Article 19 shall revert to the
      Employer.

            

    

     

    
      	
              19.8

            	
              If
      at any time the Plan is terminated with respect to any group of
      Participants of the Employer under such circumstances as constitute a
      partial termination of the Plan within the meaning of Code Section
      411(d)(3), as amended, the amounts held under any of the Trust Agreements
      that are allocable to the Participants as to whom such termination
      occurred shall be determined by the Committee and such amount shall be
      segregated by the Trustee or Trustees as assets held under a separate
      Plan.  The funds thus allocated to such separate Plan shall be
      applied for the benefit of such Participants in the manner described
      above.

            

    

     

    
      	
              19.9

            	
              Non-Liability of
      Employer - The Employer shall have no liability to the Participant
      for the payment of any benefits provided for by the Plan, nor shall the
      Employer have any liability for the administration of the assets of the
      Trust, and each Participant shall look solely to the assets of the Plan
      for any payment of Retirement Benefits provided for by the
      Plan.

            

    

     

    
      
        
           

        

        
          71

          
            

          

        

        
           

        

      

    

    

    ARTICLE
20

     

    MISCELLANEOUS
PROVISIONS

    

    

    
      	
              20.1

            	
              This
      Plan is created for the exclusive benefit of the Employees of the Employer
      and their Beneficiaries and shall be interpreted in a manner consistent
      with its existence as an Employees' Plan and Trust qualified under the
      Internal Revenue Code of 1986 and subject to the provisions of the
      Employee Retirement Income Security Act of 1974, or any other legislation
      of similar import.  This Section cannot be altered or
      amended.

            

    

     

    
      	
              20.2

            	
              Exclusive Benefit of
      Participant - It shall be impossible, at any time prior to the
      satisfaction of all liabilities with respect to Employees and their
      Beneficiaries under this Plan, for any part of the corpus or income to be
      (within the taxable year or thereafter) used for, or diverted to, purposes
      other than for the exclusive benefit of the Employer's Employees or their
      Beneficiaries; and the Employer shall not be entitled to receive back any
      part of its contributions to this Trust, except as set forth under Section
      14.2, Article 19 and this Article
20.

            

    

     

    
      	
              20.3

            	
              Neither
      the Employer nor the Trustee shall be responsible for the validity of any
      interest of policies, or for the failure on the part of any Insurer to
      make any payments or provide any benefits under any contract or policy, or
      for the action of any person or persons which may render any policy
      invalid or unenforceable.  Neither the Employer nor the Trustee
      shall be responsible for any inability to perform or delay in performing
      any act occasioned by any restriction or provisions of any policy, or
      imposed by any Insurer, or by any other person.  In case it
      becomes impossible for the Employer or the Trustee to perform any act
      under this Plan, that act shall be performed which, in the judgment of the
      Plan Administrator, will most nearly carry out the intent and purpose of
      this Plan.  All parties of this Plan who are in any way
      interested herein shall be bound by any acts performed under such
      conditions.

            

    

     

    
      	
              20.4

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

            

    

     

    
      	
              20.5

            	
              Plan not Contract of
      Employment - This Plan shall not be construed as creating or
      changing any contract of employment between the Employer and its
      Employees, whether Participants hereunder or not; and the Employer retains
      the right to deal with its Employees, whether Participants hereunder or
      not, and to terminate their respective employment at any time, to the same
      extent as though this Plan had not been
created.

            

    

     

    
      	
              20.6

            	
              Invalidity of Certain
      Provisions - If any provisions of this Plan shall be held invalid
      or unenforceable, such invalidity or unenforceability shall not affect any
      other provisions and this Plan shall be construed and enforced as if such
      provisions had not been included.

            

    

     

    
      	
              20.7

            	
              Law Governing -
      This Plan shall be construed and enforced according to the laws of the
      State of North Carolina, other than its laws respecting choice of law, to
      the extent not

            

    

     

    
      
        
           

        

        
          72

          
            

          

        

        
           

        

      

    

    

    preempted
by the Employee Retirement Income Security Act of 1974, or by the Internal
Revenue Code, or by any other applicable Federal law.

     

    
      	
              20.8

            	
              General
      Undertaking - All parties to this Plan and all persons claiming any
      interest whatsoever hereunder agree to perform any and all acts and
      execute any and all documents and papers which may be necessary or
      desirable for the carrying out of this Plan or any of its
      provisions.

            

    

     

    
      	
              20.9

            	
              Agreement to Bind
      Heirs, Etc. - This Plan shall be binding upon the heirs, executors,
      administrators, successors and assigns, as such terms shall apply, of any
      and all parties hereto, present and
future.

            

    

     

    
      	
              20.10

            	
              Action by
      Employer - Whenever under the terms of the Plan the Employer is
      permitted or required to take some action, such action may be taken by any
      officer of the Employer who has been duly authorized by the Board of
      Directors of the Employer.

            

    

     

    
      	
              20.11

            	
              Rule Against
      Perpetuities - If the indefinite continuance of this Plan would be
      in violation of the law, then this Plan shall continue for the maximum
      period permitted by law and shall then terminate, whereupon distribution
      of its assets shall be made as provided for in Article 19.6 of this
      Plan.

            

    

     

    
      	
              20.12

            	
              Effect of Merger,
      Consolidation or Transfer of Assets - Before this Plan can be
      merged or consolidated with any other Plan, or its assets or liabilities
      transferred to any other Plan, the Plan Administrator must secure (and
      file with the Secretary of Treasury at least thirty (30) days beforehand)
      a certification from an Enrolled Actuary, and if the Plan is terminated
      after the merger, each Participant must be assured that he will be
      entitled to a benefit after the merger, consolidation or transfer which is
      equal to or greater than the benefit he would have been entitled to
      receive immediately before such transaction (if the plan had then been
      terminated).

            

    

     

    
      
        
           

        

        
          73

          
            

          

        

        
           

        

      

    

    

    ARTICLE
21

     

    DIRECT
ROLLOVERS

    

    

    
      	
              21.1

            	
              This
      Article applies to distributions made on or after January 1,
      1993.  Notwithstanding any provision of the Plan to the contrary
      that would otherwise limit a distributee's election under this Article, a
      distributee may elect, at the time and in the manner prescribed by the
      Plan Administrator, to have any portion of an eligible rollover
      distribution paid directly to an eligible retirement plan specified by the
      distributee in a direct rollover.

            

    

     

    
      	
              21.2

            	
              Definitions:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Eligible rollover
      distribution:  An eligible rollover distribution is any
      distribution of all or any portion of the balance to the credit of the
      distributee, except that an eligible rollover distribution does not
      include:  any distribution that is one of a series of
      substantially equal periodic payments (not less frequently than annually)
      made for the life (or life expectancy) of the distributee or the joint
      lives (or joint life expectancies) of the distributee and the
      distributee's designated beneficiary, or for a specified period of ten
      years or more; any distribution to the extent such distribution is
      required under section 401(a)(9) of the Code; and the portion of any
      distribution that is not includible in gross income (determined without
      regard to the exclusion for net unrealized appreciation with respect to
      employer securities).

            

    

     

    
      	
               
      

            	
              (b)

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

            

    

     

    
      	
               
      

            	
              (c)

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

            

    

     

    
      	
               
      

            	
              (d)

            	
              Direct
      rollover:  A direct rollover is a payment by the plan to
      the eligible retirement plan specified by the
  distributee.

            

    

     

    
      
        
           

        

        
          74

          
            

          

        

        
           

        

      

    

    

    IN WITNESS WHEREOF, First Bancorp has
caused these presents to be signed by its duly authorized officers and its seal
to be hereunto affixed, this 29th   day
of January  ,
2002.

    

    

    

    

    
      	 
      	 
      	
              FIRST
      BANCORP

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
              By: 
      /s/ James H. Garner

            
	 
      	 
      	
              James
      H. Garner- President

            

    

    

    

    ATTEST:

    

    

    

    /s/ Anna G.
Hollers

            Secretary

    

    
      
        
           

        

        
          75

          
            

          

        

        
           

        

      

    

    

    APPENDIX
A

     

    COVERED
COMPENSATION 35-YEAR AVERAGE TABLE (2001)*

    

    
      	
              Year
      of

            	 
      	
              Covered

            	 
      	
              Year
      of

            	 
      	
              Covered

            
	
              Birth

            	 
      	
              Compensation

            	 
      	
              Birth

            	 
      	
              Compensation

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
              1933

            	 
      	
              31,128

            	 
      	
              1951

            	 
      	
              66,960

            
	
              1934

            	 
      	
              33,060

            	 
      	
              1952

            	 
      	
              68,232

            
	
              1935

            	 
      	
              35,100

            	 
      	
              1953

            	 
      	
              69,444

            
	
              1936

            	 
      	
              37,212

            	 
      	
              1954

            	 
      	
              70,620

            
	
              1937

            	 
      	
              39,312

            	 
      	
              1955

            	 
      	
              72,756

            
	
              1938

            	 
      	
              43,464

            	 
      	
              1956

            	 
      	
              73,764

            
	
              1939

            	 
      	
              45,540

            	 
      	
              1957

            	 
      	
              74,700

            
	
              1940

            	 
      	
              47,616

            	 
      	
              1958

            	 
      	
              75,528

            
	
              1941

            	 
      	
              49,656

            	 
      	
              1959

            	 
      	
              76,296

            
	
              1942

            	 
      	
              51,648

            	 
      	
              1960

            	 
      	
              77,004

            
	
              1943

            	 
      	
              53,568

            	 
      	
              1961

            	 
      	
              77,664

            
	
              1944

            	 
      	
              55,452

            	 
      	
              1962

            	 
      	
              78,228

            
	
              1945

            	 
      	
              57,312

            	 
      	
              1963

            	 
      	
              78,780

            
	
              1946

            	 
      	
              59,148

            	 
      	
              1964

            	 
      	
              79,284

            
	
              1947

            	 
      	
              60,936

            	 
      	
              1965

            	 
      	
              79,704

            
	
              1948

            	 
      	
              62,580

            	 
      	
              1966

            	 
      	
              80,052

            
	
              1949

            	 
      	
              64,140

            	 
      	
              1967

            	 
      	
              80,280

            
	
              1950

            	 
      	
              65,580

            	 
      	
                          
      1968 or later

            	 
      	
              80,400

            

    

    

    *Covered
Compensation rounded to $12

    

    
      
        
           

        

        
          76

          
            

          

        

        
           

        

      

    

    

    APPENDIX
B

     

    SOCIAL
SECURITY INTEGRATION LIMIT

     ON
EARLY OR DEFERRED COMMENCEMENT OF BENEFITS

    (Unit
Benefit Integrated Plan Formula)

    

    

    
      	 
      	 
      	 
      	 
      	 
      
	 
      	
              Age
      at which 

              benefits
      commence

            	 
      	
              Maximum
      Excess Percent

            	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	
              70

            	 
      	
              1.048%

            	 
      
	 
      	
              69

            	 
      	
              0.950%

            	 
      
	 
      	
              68

            	 
      	
              0.863%

            	 
      
	 
      	
              67

            	 
      	
              0.784%

            	 
      
	 
      	
              66

            	 
      	
              0.714%

            	 
      
	 
      	
              65

            	 
      	
              0.650%

            	 
      
	 
      	
              64

            	 
      	
              0.607%

            	 
      
	 
      	
              63

            	 
      	
              0.563%

            	 
      
	 
      	
              62

            	 
      	
              0.520%

            	 
      
	 
      	
              61

            	 
      	
              0.477%

            	 
      
	 
      	
              60

            	 
      	
              0.433%

            	 
      
	 
      	
              59

            	 
      	
              0.412%

            	 
      
	 
      	
              58

            	 
      	
              0.390%

            	 
      
	 
      	
              57

            	 
      	
              0.368%

            	 
      
	 
      	
              56

            	 
      	
              0.347%

            	 
      
	 
      	
              55

            	 
      	
              0.325%

            	 
      

    

    

    
      
        
           

        

        
          77

          
            

          

        

        
           

        

      

    

    

    AMENDMENT
#1

    TO
THE

     

    First
Bancorp Employees’ Pension Plan

     (as
Amended and Restated January 1, 2001)

    

    

    Pursuant to the authority granted the
undersigned corporate officer of First Bancorp by the Board of Directors of
First Bancorp, the First Bancorp Employees’ Pension Plan (“Plan”) is amended as
follows:

     

    PREAMBLE

     

    Adoption and Effective Date of
Amendment.  This Amendment (“Amendment”) to the Plan is adopted
to reflect certain provisions of the Economic Growth and Tax Relief
Reconciliation Act of 2001 (“EGTRRA”).  This Amendment is intended as
good faith compliance with the requirements of EGTRRA and is to be construed in
accordance with EGTRRA and guidance issued thereunder.  Except as
otherwise provided, this Amendment shall be effective January 1,
2002.

     

    Supersession of Inconsistent
Provisions.  This Amendment shall supersede the provisions of
the Plan to the extent those provisions are inconsistent with the provisions of
this Amendment.

     

    I.   LIMITATIONS
ON BENEFITS (Plan Section 4.3)

     

    
      	
              1.

            	
              Effective date. This
      section shall be effective for Limitation Years ending after December 31,
      2001.

            

    

     

    
      	
              2.

            	
              Effect on Participants.
      Benefit increases resulting from the increase in the limitations of
      section 415(b) of the Code will be provided to all Employees participating
      in the Plan who have one Hour of Service on or after the first day of the
      first Limitation Year ending after December 31,
  2001.

            

    

     

    
      	
              3. 

            	
              Definitions.

            

    

     

    
      	
               
      

            	
              3.1

            	
              Defined Benefit Dollar
      Limitation. The “Defined Benefit Dollar Limitation” is $160,000, as
      adjusted, effective January 1 of each calendar year, under section 415(d)
      of the Code in such manner as the Secretary shall prescribe, and payable
      in the form of a straight life annuity. A limitation as adjusted under
      section 415(d) will apply to Limitation Years ending with or within the
      calendar year for which the adjustment
applies.

            

    

     

    
      	
               
      

            	
              3.2

            	
              Maximum permissible
      benefit: The “maximum permissible benefit” is the lesser of the (i)
      Defined Benefit Dollar Limitation or (ii) the Defined Benefit Compensation
      Limitation (both adjusted where required, as provided in (a) and, if
      applicable, in (b) or (c) below).

            

    

     

    
      	
               
      

            	
              (a)

            	
              If
      the Participant has fewer than 10 Years of Participation in the Plan, the
      Defined Benefit Dollar Limitation shall be multiplied by a fraction, (i)
      the numerator of which is the number of Years (or part thereof) of
      Participation in the Plan and (ii) the denominator of which is 10. In
      the

            

    

     

    
      
        
           

        

        
          78

          
            

          

        

        
           

        

      

    

    

    case of a
Participant who has fewer than 10 Years of Service with the Employer, the
Defined Benefit Compensation Limitation shall be multiplied by a fraction, (i)
the numerator of which is the number of Years (or part thereof) of Service with
the Employer and (ii) the denominator of which is 10.

     

    
      	
               
      

            	
              (b)

            	
              If
      the benefit of a Participant begins prior to age 62, the Defined Benefit
      Dollar Limitation applicable to the Participant at such earlier age is an
      annual benefit payable in the form of a straight life annuity beginning at
      the earlier age that is the Actuarial Equivalent of the Defined Benefit
      Dollar Limitation applicable to the Participant at age 62 (adjusted under
      (a) above, if required). The Defined Benefit Dollar Limitation applicable
      at an age prior to age 62 is determined as the lesser of (i) the Actuarial
      Equivalent (at such age) of the Defined Benefit Dollar Limitation computed
      using the interest rate and mortality table (or other tabular factor)
      specified in Section 4.3(b) of the Plan and (ii) the Actuarial Equivalent
      (at such age) of the Defined Benefit Dollar Limitation computed using a 5%
      interest rate and the applicable mortality table as defined in Section
      4.3(b) of the Plan. Any decrease in the Defined Benefit Dollar Limitation
      determined in accordance with this paragraph (b) shall not reflect a
      mortality decrement if benefits are not forfeited upon the death of the
      Participant. If any benefits are forfeited upon death, the full mortality
      decrement is taken into account.

            

    

     

    
      	
               
      

            	
              (c)

            	
              If
      the benefit of a Participant begins after the Participant attains age 65,
      the Defined Benefit Dollar Limitation applicable to the Participant at the
      later age is the annual benefit payable in the form of a straight life
      annuity beginning at the later age that is actuarially equivalent to the
      Defined Benefit Dollar Limitation applicable to the Participant at age 65
      (adjusted under (a) above, if required). The Actuarial Equivalent of the
      Defined Benefit Dollar Limitation applicable at an age after age 65 is
      determined as the lesser of (i) the Actuarial Equivalent (at such age) of
      the Defined Benefit Dollar Limitation computed using the interest rate and
      mortality table (or other tabular factor) specified in Section 4.3(b) of
      the Plan or (ii) the Actuarial Equivalent (at such age) of the Defined
      Benefit Dollar Limitation computed using a 5% interest rate assumption and
      the applicable mortality table as defined in Section 4.3(b) of the Plan.
      For these purposes, mortality between age 65 and the age at which benefits
      commence shall be ignored.

            

    

     

    II.
INCREASE IN COMPENSATION LIMIT (Plan Section 1.11)

     

    
      	
              1.

            	
              Increase in limit. The
      annual Compensation of each Participant taken into account in determining
      benefit accruals in any Plan Year beginning after December 31, 2001, shall
      not exceed $200,000. Annual Compensation means Compensation during the
      Plan Year or such other consecutive 12-month period over which
      Compensation is otherwise determined under the Plan (the determination
      period). For purposes of determining benefit accruals in a Plan Year
      beginning after December 31, 2001, Compensation for any prior
      determination period shall be limited as provided by the employer in the
      Plan.

            

    

     

    
      
        
           

        

        
          79

          
            

          

        

        
           

        

      

    

    

    
      	
              2.

            	
              Cost-of-living
      adjustment. The $200,000 limit on annual Compensation in paragraph
      1 shall be adjusted for cost-of-living increases in accordance with
      section 401(a)(17)(B) of the Code. The cost-of-living adjustment in effect
      for a calendar year applies to annual Compensation for the determination
      period that begins with or within such calendar
  year.

            

    

     

    
      	
              3.

            	
              Compensation Limit for Prior
      Determination Periods. In determining benefit accruals in Plan
      Years beginning after December 31, 2001, the annual Compensation limit in
      paragraph 1 of Section II (Increase in Compensation Limit), for
      determination periods beginning before January 1, 2002, shall be $150,000
      for any determination period beginning in 1996 or earlier; $160,000 for
      any determination period beginning in 1997, 1998, or 1999; and $170,000
      for any determination period beginning in 2000 or
  2001.

            

    

     

    III.
Modification of Top-Heavy Rules (Article 11 of the Plan)

     

    
      	
              1.

            	
              Effective date. This
      section shall apply for purposes of determining whether the Plan is a
      top-heavy Plan under section 416(g) of the Code for Plan Years beginning
      after December 31, 2001, and whether the Plan satisfies the minimum
      benefits requirements of section 416(c) of the Code for such years. This
      section amends Article 11 of the
Plan.

            

    

     

    
      	
              2.

            	
              Determination
      of top-heavy status.

            

    

     

    
      	
               
      

            	
              2.1

            	
              Key employee. Key
      Employee means any Employee or former Employee (including any deceased
      Employee) who at any time during the Plan Year that includes the
      determination date was an officer of the Employer having annual
      Compensation greater than $130,000 (as adjusted under section 416(i)(1) of
      the Code for Plan Years beginning after December 31, 2002), a 5-percent
      owner of the Employer, or a 1- percent owner of the Employer having annual
      Compensation of more than $150,000. For this purpose, annual Compensation
      means Compensation within the meaning of section 415(c)(3) of the Code.
      The determination of who is a Key Employee will be made in accordance with
      section 416(i)(1) of the Code and the applicable regulations and other
      guidance of general applicability issued
  thereunder.

            

    

     

    
      	
               
      

            	
              2.2

            	
              Determination of present values
      and amounts. This section 2.2 shall apply for purposes of
      determining the present values of Accrued Benefits and the amounts of
      account balances of Employees as of the determination
  date.

            

    

     

    
      	
               
      

            	
              2.2.1

            	
              Distributions during year
      ending on the determination date. The present values of Accrued
      Benefits and the amounts of account balances of an Employee as of the
      determination date shall be increased by the distributions made with
      respect to the Employee under the Plan and any Plan aggregated with the
      Plan under section 416(g)(2) of the Code during the 1-year period ending
      on the determination date. The preceding sentence shall also apply to
      distributions under a terminated Plan which, had it not been terminated,
      would have been aggregated with the Plan under section 416(g)(2)(A)(i) of
      the Code. In the case of a distribution made for a reason other than
      separation from service, death, or disability, this provision shall be
      applied by substituting “5-year period” for “1-year
    period.”

            

    

     

    
      	
               
      

            	
              2.2.2

            	
              Employees not performing
      services during year ending on the determination date. The Accrued
      Benefits and accounts of any individual
who

            

    

     

    
      
        
           

        

        
          80

          
            

          

        

        
           

        

      

    

    

    has not
performed services for the Employer during the 1-year period ending on the
determination date shall not be taken into account.

     

    
      	
              3.

            	
              Minimum benefits. For
      purposes of satisfying the minimum benefit requirements of section
      416(c)(1) of the Code and the Plan, in determining Years of Service with
      the Employer, any service with the Employer shall be disregarded to the
      extent that such service occurs during a Plan Year when the Plan benefits
      (within the meaning of section 410(b) of the Code) no Key Employee or
      former Key Employee.

            

    

     

    IV.
Direct Rollovers of Plan Distributions (Article 21)

     

    
      	
              1.

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

            

    

     

    
      	
              2.

            	
              Modification of definition of
      eligible retirement Plan. For purposes of the direct rollover
      provisions in section 21.2 of the Plan, an eligible retirement Plan shall
      also mean an annuity contract described in section 403(b) of the Code and
      an eligible Plan under section 457(b) of the Code which is maintained by a
      state, political subdivision of a state, or any agency or instrumentality
      of a state or political subdivision of a state and which agrees to
      separately account for amounts transferred into such Plan from this Plan.
      The definition of eligible retirement Plan shall also apply in the case of
      a distribution to a surviving spouse, or to a spouse or former spouse who
      is the alternate payee under a qualified domestic relation order, as
      defined in section 414(p) of the
Code.

            

    

     

    V.
MODEL AMENDMENT AFFECTING CERTAIN PLAN DISTRIBUTIONS

     

    
      	
              1.

            	
              Effective Date. This
      Section shall apply to distributions with annuity starting dates on or
      after December 31, 2002.

            

    

     

    
      	
              2.

            	
              Mortality
      Table.  Notwithstanding any other plan provisions to the
      contrary, the applicable mortality table used for purposes of adjusting
      any benefit or limitation under Code Section 415(b)(2)(B), (C), or (D) as
      set forth in Section 4.3 of the Plan and the applicable mortality table
      used for purposes of satisfying the requirements of Code Section 417(e) as
      set forth in Section 1.2(b)(2) of the Plan is the table prescribed in
      Rev.Rul. 2001-62.

            

    

     

    VI.
NON-EGTRRA AMENDMENTS AFFECTING CERTAIN DEATH BENEFITS

     

    Effective

January 1, 2002, subsection
(b) of Section 7.2 Determination of
Preretirement Death Benefits is hereby deleted in its entirety and the
following new subsection (b) is substituted in its place, as
follows:

     

    
      	
               
      

            	
              “(b)

            	
              For
      a Participant who meets the requirements of Section 7.1(c) above, unless
      an optional form of benefit is selected within the Election Period
      pursuant to a Qualified Election, the Participant's surviving Eligible
      Spouse (if any) will receive the same benefit that would be payable if the
      Participant had retired with an immediate Qualified Joint and 100%
      Survivor Annuity on the day prior to his
death.”

            

    

     

    

    
      
        
           

        

        
          81

          
            

          

        

        
           

        

      

    

    

    IN WITNESS WHEREOF, this
Amendment #1 to the First Bancorp Employees’ Pension Plan is adopted this _19_ day of ___November___, 2002, to
be effective as stated above.

     

    
      	 
      	
              FIRST
      BANCORP

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	By: 
      /s/
      James H. Garner
	 
      	 
      	 
      	Its: 
      President & CEO
	
              ATTEST:

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	By:
       /s/
      Anna G. Hollers	 
      	 
      	 
      
	Its:
       Secretary	 
      	 
      	 
      

    

    

    
      (CORPORATE
SEAL)

    

    

    
      
        
           

        

        
          82

          
            

          

        

        
           

        

      

    

    

    AMENDMENT

    TO
THE

    FIRST
BANCORP

    EMPLOYEES’
PENSION PLAN

    

    

    Pursuant
to the authority granted the undersigned corporate officer of First Bancorp by
the Board of Directors of First Bancorp, effective January 1, 2002, the Pension
Plan for the Employees of First Bancorp Employees’ Pension Plan (“the Plan”) is
amended as follows:

     

    Subsection
(a) of Section 6.1 Eligibility for Disability
Retirement Benefits is hereby deleted in its entirety and the following
new subsection (a) is substituted in its place, as follows:

     

    
      	
               
      

            	
              “(a)

            	
              A
      Participant who is not yet eligible for Early Retirement under Article 3,
      or Normal Retirement under Article 4, and who ceases to be an Employee due
      to disability shall be eligible to receive a Disability Retirement Benefit
      if:

            

    

     

    
      	
               
      

            	
              (1)

            	
              a
      Participant qualifies for any disability benefits sponsored by the
      Employer under any existing Insured Disability Income Plan, or if no such
      benefits are provided, then

            

    

     

    
      	
               
      

            	
              (2)

            	
              a
      Participant becomes unable to engage in his regular occupation by reason
      of any physical or mental impairment as determined by a licensed physician
      chosen by the Participant and/or the disability insurance carrier, meeting
      the following requirements:

            

    

     

    
      	
               
      

            	
              (A)

            	
              The
      Participant has become totally disabled by bodily injury, disease or
      mental disorder and is unable to perform the material and substantial
      duties of his regular occupation for which he is reasonably fitted by
      training, education, or experience,
and

            

    

     

    
      	
               
      

            	
              (B)

            	
              The
      licensed physician expects said bodily injury, disease or mental disorder
      to result in the death of the Participant or last for a continuous period
      of not less than twelve months and;

            

    

     

    
      	
               
      

            	
              (C)

            	
              Such
      disability has continued for a period of ninety (90) days and will be
      permanent and continuous for the remainder of the Participant's
      lifetime.

            

    

     

    
      	
               
      

            	
              (3)

            	
              For
      purposes of this Plan, however, no Participant shall be deemed totally and
      permanently disabled if his disability results from active participation
      in a riot, due to a pre-existing condition, any injury incurred while
      engaging in any illegal or felonious enterprise, intentionally
      self-inflicted injury, or injury incurred while serving in the armed
      forces of any country.

            

    

     

    
      	
               
      

            	
              (4)

            	
              The
      Employer may require proof of continued disability from time to time, but
      not more frequently than once in any six (6) month
  period.

            

    

     

    
      
        
           

        

        
          83

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (5)

            	
              If
      the Participant’s condition constitutes total disability under the federal
      Social Security Acts, the Retirement Committee may rely upon such
      determination that the Participant is disabled for purposes of the
      Plan.

            

    

     

    
      	
               
      

            	
              (6)

            	
              The
      determination of disability shall be applied uniformly to all
      Participants.”

            

    

     

    Section
13.2 Denial of
Claim is hereby deleted in its entirety and the following new Section
13.2 Claims
Procedure is substituted in it place, as follows:

     

    
      	
               
      

            	
              “13.2

            	
              Claims
      Procedure.

            

    

    

    If a
Participant or Beneficiary believes that he is entitled to benefits under the
Plan which are not being paid to him or which are not being credited to his
Account, he may file a written claim with the Plan Administrator, which claim
shall immediately be referred to the Retirement Committee.  The
Retirement Committee shall decide whether the claim shall be allowed or denied
in whole or in part.  In the event that the Retirement Committee shall
wholly or partially deny the claim for benefits made by any claimant, written
notice or such denial shall be furnished to the claimant within forty-five (45)
days following the receipt of the claim by the Plan Administrator.  If
the Retirement Committee determines that an extension of time for processing the
claim is required, notice of the extension shall be provided to the claimant
before the expiration of the initial forty-five (45) day period, and such
extension shall not exceed sixty (60) days from the end of the initial
forty-five (45) day period.  Any notice of an extension must be
provided to the claimant before the end of the applicable period and must
explain the special circumstances that require the extension and the date by
which the Retirement Committee expects to make a decision.

    

    If the
Retirement Committee determines that the claimant’s claim for benefits should be
either wholly or partially denied, any notice denying the benefits shall be
worded in a manner calculated to be understood by the claimant and shall set
forth (i) the specific reason or reasons for the denial; (ii) specific reference
to pertinent Plan provisions on which the denial is based; (iii) a description
of any additional material or information necessary for the claimant to perfect
the claim and an explanation of why such material or information is necessary;
and (iv) an explanation of the Plan’s claim review procedure.

    

    Within
one hundred eighty (180) days following the receipt of such claim denial by the
claimant, the claimant may appeal the denial of the claim by filing in writing
with the Plan Administrator a written application for review, which application
shall immediately be referred to the Retirement Committee.  The
Retirement Committee shall fully and fairly review the decision denying the
claim.

    

    Prior to
the decision of the Retirement Committee, the claimant (or the claimant’s
representative) shall be given an opportunity to review, upon request and free
of charge, copies of all documents, records and other

    

    
      
        
           

        

        
          84

          
            

          

        

        
           

        

      

    

    

    information
relevant to the denial and to submit written comments, documents, records and
other information relevant to the claim to the Retirement
Committee.  The Retirement Committee’s review will take into account
all comments, documents, records and other information submitted by the
claimant, without regard to whether such information was submitted or considered
in the initial benefits determination.

    

    The
Retirement Committee shall make its decision regarding the merits of the claim
within forty-five (45) days following receipt by the Plan Administrator of the
request for review or within ninety (90) days after such receipt, in a case
where there are special circumstances requiring extension of time for processing
the claim.  In the event the Retirement Committee determines an
extension of time is required, the Retirement Committee shall provide the
claimant written notice of the additional extension prior to the termination of
the initial appeal review period.  In any event, the Retirement
Committee shall deliver its final decision to the claimant in
writing.  Any notice denying benefits shall be worded in a manner
calculated to be understood by the claimant and shall set forth: (i) the
specific reason or reasons for the denial; (ii) specific reference to pertinent
Plan provisions on which the denial is based; (iii) a statement that the
claimant is entitled to receive, upon request and free of charge, reasonable
access to, and copies of, all documents, records, and other information relevant
to the claimant’s claim for benefits; and (iv) a statement of the claimant’s
right to bring an action under Section 502(a) of ERISA.”

    

    Section
13.3 Claims Review
Procedure is hereby deleted in its entirety.

    

    IN WITNESS WHEREOF, this
Amendment to the First Bancorp Employees’ Pension Plan is adopted this _23rd_ day of _March_, 2004, to be
effective as stated above.

     

    

    
      	 
      	 
      	
              FIRST
      BANCORP

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
              By:
      /s/ Anna G. Hollers

            
	 
      	 
      	
              Title:
      EVP &
      Secretary

            
	 
      	 
      	 
      
	
              ATTEST:

            	 
      	 
      
	 
      	 
      	 
      
	
              By:
      /s/ Delores George

            	 
      	 
      
	
              Title:
      Asst.
      Secretary

            	 
      	 
      

    

    

    
      (CORPORATE
SEAL)

    

    

    
      
        
           

        

        
          85

          
            

          

        

        
           

        

      

    

    

    MANDATORY
DISTRIBUTION AMENDMENT

    (Code
Section 401(a)(31)(B))

    

    ARTICLE
I

    APPLICATION
OF AMENDMENT

    

    
      	
              1.1

            	
              Effective
      Date.  The provisions of this Amendment will apply with
      respect to distributions made on or after March 28,
  2005.

            

    

    
      	
               
      

            	 

    

    
      	
              1.2

            	
              Precedence.  This
      Amendment supersedes any inconsistent provision of the
    Plan.

            

    

    

    ARTICLE
II

    AUTOMATIC
ROLLOVER OF AMOUNTS OVER $1,000

    

    The
provisions of the Plan concerning mandatory distributions of amounts not
exceeding $5,000 are amended as follows:

    

    In the
event of a mandatory distribution greater than $1,000 that is made in accordance
with the provisions of the Plan providing for an automatic distribution to a
Participant without the Participant's consent, if the Participant does not elect
to have such distribution paid directly to an “eligible retirement plan”
specified by the Participant in a direct rollover (in accordance with the direct
rollover provisions of the Plan) or to receive the distribution directly, then
the Administrator shall pay the distribution in a direct rollover to an
individual retirement plan designated by the Administrator.

    

    IN
WITNESS WHEREOF, the Corporation has caused this Amendment to be executed by its
proper officers, all as of the date first above written.

    

    FIRST
BANCORP

    

    

    By: /s/
James H. Garner

    Title:
President &
CEO

    

    

    ATTEST:

    

    /s/ Anna
G. Hollers

    Title:
Secretary

    

    

    (CORPORATE
SEAL)

    

    
      
        
           

        

        
          86

          
            

          

        

        
           

        

      

    

    

     AMENDMENT FOR

    PPA,
HEART ACT AND OTHER LAW CHANGES

    FOR
THE

    FIRST
BANCORP EMPLOYEES’ PENSION PLAN

    

    

    ARTICLE
I

    PREAMBLE

    

    
      	
              1.1

            	
              Adoption and effective date of
      Amendment. The Employer adopts this Amendment to the Plan to
      reflect recent law changes. This Amendment is effective as indicated below
      for the respective provisions.

            

    

    

    
      	
              1.2

            	
              Superseding of inconsistent
      provisions. This Amendment supersedes the provisions of the Plan to
      the extent those provisions are inconsistent with the provisions of this
      Amendment.

            

    

    

    
      	
              1.3

            	
              Employer’s election. The
      Employer adopts the default provisions of this Amendment except as
      otherwise elected in Article II.

            

    

    

    
      	
              1.4

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

            

    

    

    
      	
              1.5

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

            

    

    

    ARTICLE
II

    EMPLOYER
ELECTIONS

    

    The
Employer only needs to complete the questions in Sections 2.2 through 2.8 below
in order to override the default provisions set forth below.

    

    
      	
              2.1

            	
              Default Provisions.
      Unless the Employer elects otherwise in this Article, the following
      defaults will apply:

            

    

    

    
      	
               
      

            	
              a.

            	
              The
      applicable mortality table described in Amendment Section 3.3.3(c) is
      effective for years beginning after December 31,
  2008.

            

    

    

    
      	
               
      

            	
              b.

            	
              Nonspousal
      beneficiary rollovers are permitted effective for distributions made after
      December 31, 2006.

            

    

    

    
      
        
           

        

        
          87

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              c.

            	
              In-Service
      distributions prior to Normal Retirement Age are not
      permitted.

            

    

    

    
      	
               
      

            	
              d.

            	
              The
      Code Section 436 benefit restriction provisions provide for the resumption
      of benefits when the restrictions no longer
  apply.

            

    

    

    
      	
               
      

            	
              e.

            	
              Continued
      benefit accruals pursuant to the Heroes Earnings Assistance and Relief Tax
      Act of 2008 (HEART Act) are not
provided.

            

    

    

    
      	
               
      

            	
              f.

            	
              The
      applicable interest rate shall be based on the first month (lookback
      month) prior to the Plan Year (stability period) during which a
      distribution is made.

            

    

    

    
      	
               
      

            	
              g.

            	
              If
      the cash balance provisions are elected at Amendment Section 2.8, then the
      vesting schedule will be a 3-year cliff schedule and the interest credit
      provided in the Plan is not
modified.

            

    

     

    
      	
              2.2

            	
              Effective date of applicable
      mortality table set forth in Amendment Section 3.3.3(c). The
      applicable mortality table described in Amendment Section 3.3.3(c) is
      effective for years beginning after December 31, 2008, unless an earlier
      date is specified:

            

    

    

    
      	
               
      

            	
              o

            	
              _________________
      (may be a year beginning after December 31, 2007 and before January 1,
      2009, or to any portion of such
year).

            

    

    

    
      	
              2.3

            	
              Non-spousal rollovers
      (Article IV). Non-spousal rollovers are permitted after December 31, 2006
      unless elected below (Article IV provides that such distributions are
      always permitted after December 31,
2009):

            

    

    

    
      	
               
      

            	
              o

            	
              Use
      the following instead of the default (select
  one):

            

    

    

    
      	
               
      

            	
              1.  o

            	
              Not
      permitted.

            

    

    
      	
               
      

            	
              2.  o

            	
              Permitted
      effective____________ (not earlier than January 1, 2007 and not later than
      January 1, 2010).

            

    

     

    
      	
              2.4

            	
              In-service distributions
      (Article VIII).
      In-Service Distributions prior to Normal Retirement Age are not
      permitted unless elected below:

            

    

    

    
      	
               
      

            	
              o

            	
              In-service
      distributions will be allowed for Participants at age 62 effective as of
      the first day of the 2007 Plan Year unless another age and/or date is
      elected below:

            

    

    

    
      	
               
      

            	
              1.  o

            	
              age
      ___ (may not be earlier than 62)

            

    

    
      	
               
      

            	
              2.  o

            	
              effective
      as of ______________ (may not be earlier than the first day of the 2007
      Plan Year).

            

    

    

    
      	
              2.5

            	
              Treatment of Plan as of Close
      of Prohibited or Cessation Period (Section 12.8). Unless otherwise
      elected below, payments and accruals will resume effective as of the day
      following the close of the period for which any limitation of payment or
      accrual of benefits under Amendment Sections 12.4 or 12.5
      applies.

            

    

    

    
      
        
           

        

        
          88

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
               ̈

            	
              Accruals
      will cease after the close of the period for which any limitation of
      payment or accrual of benefits under Amendment Sections 12.4 or 12.5
      applies.

            

    

     

    2.6           Continued benefit accruals (Article
XIII). Continued benefit accruals for the Heart Act (Amendment Section
13.2) will not apply unless elected below:

     

    
      	
               
      

            	
              o

            	
              The
      provisions of Amendment Section 13.2
apply.

            

    

    

    
      	
              2.7

            	
              Applicable interest
      rate. For purposes of Amendment Section 14.2, unless otherwise
      elected below, the stability period is the Plan Year during which a
      distribution is made and the lookback month is the first calendar month
      preceding the first day of the stability period. (If an alternative
      election is being made, then a selection at both a. and b. must be
      made.)

            

    

    

    
      	
               
      

            	
              a.

            	
              The
      stability period for purposes of determining the Applicable Interest Rate
      is:

            

    

    

    
      	
               
      

            	
              1.  o

            	
              One
      calendar month

            

    

    
      
        	 	
                2.
       o

              	
                One
      Plan Year quarter

              

      

    

    
      
        	 	
                3.
       o

              	
                One
      calendar year quarter

              

      

    

    
      
        	 	
                4.
       o

              	
                One
      Plan Year

              

      

    

    
      	
               
      

            	
              5.  o

            	
              One
      calendar year

            

    

    

    
      	
               
      

            	
              b.

            	
              The
      lookback month relating to the Stability Period is
  the:

            

    

    

    
      	
               
      

            	
              1.  o

            	
              first
      calendar month preceding the first day of the Stability
    Period

            

    

    
      	
               
      

            	
              2.  o

            	
              second
      calendar month preceding the first day of the Stability
    Period

            

    

    
      	
               
      

            	
              3.  o

            	
              third
      calendar month preceding the first day of the Stability
    Period

            

    

    
      	
               
      

            	
              4.  o

            	
              fourth
      calendar month preceding the first day of the Stability
    Period

            

    

    
      	
               
      

            	
              5.  o

            	
              fifth
      calendar month preceding the first day of the Stability
    Period

            

    

    
      
        	
                 
      

              	
                6.  o

              	
                average
      rate for two or more calendar months preceding the first day of the
      Stability Period (specify which of the first through fifth months are
      averaged) _____________________

              

      

       

    

    
      
      

    

    
      	
              2.8

            	
              Cash balance plans. The
      provisions of Article XV (Cash Balance provisions) only apply if elected
      below:

            

    

    

    
      	
               
      

            	
              o

            	
              The
      provisions of Article XV apply (may only be selected if the Plan already
      includes cash balance provisions).

            

    

    

    And, the following elections
apply (select all that apply):

    

    
      	
               
      

            	
              a.  o

            	
              Vesting. In lieu of the
      default 3-year cliff vesting schedule (a Participant’s Accrued Benefit is
      nonforfeitable upon the Participant’s completion of three years of vesting
      service), the following schedule applies (must be at least as liberal as
      3-year cliff vesting at each point in
time):

            

    

     

    
      
        	
                Years
      of vesting service

              	
                Nonforfeitable
      percentage

              
	 
      	 
      
	
                ________

              	
                _________%

              
	
                ________

              	
                _________%

              
	
                ________

              	
                _________%

              

      

      
        
           

        

        
          89

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              b.  o

            	
              Market Rate of Interest.
      The interest credit rate set forth in the Plan shall be changed to ______
      (only select this option b. if a change is being made to the interest rate
      credit).

            

    

    

    
      
        
           

        

        
          90

          
            

          

        

        
           

        

      

    

    

    ARTICLE
III

    PENSION
FUNDING EQUITY ACT OF 2004 AS MODIFIED BY SUBSEQUENT LEGISLATION

    

    
      	
              3.1

            	
              General
    Rule

            

    

    

    
      	
              3.1.1

            	
              Effective date. The
      Employer adopts this Article III to reflect certain provisions of the
      Pension Funding Equity Act of 2004 (PFEA), as modified by the Pension
      Protection Act of 2006 and the Worker, Retiree and Employer Recovery Act
      of 2008.  Except as otherwise provided herein, effective for
      distributions in Plan Years beginning after December 31, 2003, the
      required determination of actuarial equivalence of forms of benefit other
      than a straight life annuity shall be made in accordance with this
      Amendment. However, this Amendment does not supersede any prior election
      to apply the transition rule of section 101(d)(3) of PFEA as described in
      Notice 2004-78.

            

    

    

    3.1.2           Definition of “Applicable Mortality
Table.” The “applicable mortality table” means the applicable mortality
table within the meaning of Code Section 417(e)(3)(B) (as described in Article
XIV).

    

    3.2              Benefit Forms Not Subject to the
Present Value Rules of Code Section 417(e)(3).

    

    3.2.1           Form of benefit. The straight
life annuity that
is actuarially equivalent to the Participant’s form of benefit shall be
determined under this Section 3.2 if the form of the Participant’s benefit is
either:

    

    (a)           A
nondecreasing annuity (other than a straight life annuity) payable for a period
of not less than the life of the Participant (or, in the case of a qualified
pre-retirement survivor annuity, the life of the surviving spouse),
or

    

    (b)           An
annuity that decreases during the life of the Participant merely because
of:

    

    (1)           The
death of the survivor annuitant (but only if the reduction is not below 50% of
the benefit payable before the death of the survivor annuitant), or

    

    (2)           The
cessation or reduction of Social Security supplements or qualified disability
payments (as defined in Code Section 401(a)(11)).

    

    
      	
              3.2.2

            	
              Limitation Years beginning
      before July 1, 2007. For Limitation Years beginning before July 1,
      2007, the actuarially equivalent straight life annuity is equal to the
      annual amount of the straight life annuity commencing at the same annuity
      starting date that has the same actuarial present value as the
      Participant’s form of benefit computed using whichever of the following
      produces the greater annual amount:

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      interest rate and the mortality table (or other tabular factor) specified
      in the Plan for adjusting benefits in the same form;
  and

            

    

    

    
      	
               
      

            	
              (b)

            	
              a 5
      percent interest rate assumption and the “applicable mortality table”
      defined in the Plan for that annuity starting
  date.

            

    

    

    
      
        
           

        

        
          91

          
            

          

        

        
           

        

      

    

    

    
      	
              3.2.3

            	
              Limitation Years beginning on
      or after July 1, 2007. For Limitation Years beginning on or after
      July 1, 2007, the actuarially equivalent straight life annuity is equal to
      the greater of:

            

    

    

    
      	
               
      

            	
              (a)

            	
              The
      annual amount of the straight life annuity (if any) payable to the
      Participant under the Plan commencing at the same annuity starting date as
      the Participant’s form of benefit;
and

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      annual amount of the straight life annuity commencing at the same annuity
      starting date that has the same actuarial present value as the
      Participant’s form of benefit, computed using a 5 percent interest rate
      assumption and the applicable mortality table defined in the Plan for that
      annuity starting date.

            

    

    

    
      	
              3.3

            	
              Benefit Forms Subject
      to the Present Value Rules of Code Section
    417(e)(3).

            

    

    

    
      	
              3.3.1

            	
              Form of benefit. The
      straight life annuity that is actuarially equivalent to the Participant’s
      form of benefit shall be determined as indicated under this Section 3.3 if
      the form of the Participant’s benefit is other than a benefit form
      described in Section 3.2.1.

            

    

    

    
      	
              3.3.2

            	
              Annuity Starting Date in small
      plans for Plan Years Beginning in 2009 and later. Notwithstanding
      anything in this Amendment to the contrary, if the annuity starting date
      of the Participant’s form of benefit is in a Plan Year beginning in or
      after 2009, and if the Plan is maintained by an eligible employer as
      defined Code Section 408(p)(2)(C)(i), the actuarially equivalent straight
      life annuity is equal to the annual amount of the straight life annuity
      commencing at the same annuity starting date that has the same actuarial
      present value as the Participant’s form of benefit, computed using
      whichever of the following produces the greater annual
    amount:

            

    

    

    
      	
               
      

            	
              (a)

            	
              The
      interest rate and the mortality table (or other tabular factor) specified
      in the Plan for adjusting benefits in the same form;
  and

            

    

    

    
      	
               
      

            	
              (b)

            	
              A
      5.5 percent interest rate assumption and the applicable mortality table
      described in Article XIV.

            

    

    

    
      	
              3.3.3

            	
              Annuity Starting Date in Plan
      Years Beginning After 2005. Except as provided in Section 3.3.2, if
      the annuity starting date of the Participant’s form of benefit is in a
      Plan Year beginning after December 31, 2005, the actuarially equivalent
      straight life annuity is equal to the greatest
  of:

            

    

    

    
      	
               
      

            	
              (a)

            	
              The
      annual amount of the straight life annuity commencing at the same annuity
      starting date that has the same actuarial present value as the
      Participant’s form of benefit, computed using the interest rate and the
      mortality table (or other tabular factor) specified in the Plan for
      adjusting benefits in the same
form;

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      annual amount of the straight life annuity commencing at the same annuity
      starting date that has the same actuarial present value as the
      Participant’s form of benefit, computed using a 5.5 percent interest rate
      assumption and the applicable mortality table for the distribution under
      Treasury Regulations Section 1.417(e)-1(d)(2) (determined in accordance
      with Article XIV for Plan Years after the effective date of that Article);
      and

            

    

    

    
      
        
           

        

        
          92

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (c)

            	
              The
      annual amount of the straight life annuity commencing at the same annuity
      starting date that has the same actuarial present value as the
      Participant’s form of benefit, computed for the distribution under
      Treasury Regulations Section 1.417(e)-1(d)(3) (determined in accordance
      with Article XIV for Plan Years after the effective date of that Article)
      and the applicable mortality table for the distribution under Treasury
      Regulations Section 1.417(e)-1(d)(2) (determined in accordance with
      Article XIV for Plan Years after the effective date specified below),
      divided by 1.05.

            

    

    

    The
effective date of the applicable mortality table above is for years beginning
after December 31, 2008, unless an earlier date is elected in Amendment Section
2.2.

    

    
      	
              3.3.4

            	
              Annuity Starting Date in Plan
      Years Beginning in 2004 or 2005. If the annuity starting date of
      the Participant’s form of benefit is in a Plan Year beginning in 2004 or
      2005, the actuarially equivalent straight life annuity is equal to the
      annual amount of the straight life annuity commencing at the same annuity
      starting date that has the same actuarial present value as the
      Participant’s form of benefit, computed using whichever of the following
      produces the greater annual amount:

            

    

    

    
      	
               
      

            	
              (a)

            	
              The
      interest rate and the mortality table (or other tabular factor) specified
      in the Plan for adjusting benefits in the same form;
  and

            

    

    

    
      	
               
      

            	
              (b)

            	
              A
      5.5 percent interest rate assumption and the applicable mortality table
      for the distribution under Treasury Regulations Section
      1.417(e)-1(d)(2).

            

    

    

    However,
this Section does not supersede any prior election to apply the transition rule
of section 101(d)(3) of PFEA as described in Notice 2004-78.

    

    
       ARTICLE
IV

    

    DIRECT
ROLLOVER OF NON-SPOUSAL DISTRIBUTION

    

    
      	
              4.1

            	
              Non-spouse beneficiary rollover
      right. For distributions after December 31, 2009, and unless
      otherwise elected in Amendment Section 2.3, for distributions after
      December 31, 2006, a non-spouse beneficiary who is a “designated
      beneficiary” under Code Section 401(a)(9)(E) and the Regulations
      thereunder, by a direct trustee-to-trustee transfer (“direct rollover”),
      may roll over all or any portion of his or her distribution to an
      Individual Retirement Account (IRA) the beneficiary establishes for
      purposes of receiving the distribution. In order to be able to roll over
      the distribution, the distribution otherwise must satisfy the definition
      of an “eligible rollover distribution” under Code Section
      401(a)(31).

            

    

    

    
      	
              4.2

            	
              Certain requirements not
      applicable. Although a non-spouse beneficiary may roll over
      directly a distribution as provided in Section 4.1 of this Amendment, the
      distribution, if made prior to January 1, 2010, is not subject to the
      direct rollover requirements of Code Section 401(a)(31) (including Code
      Section 401(a)(31)(B)), the notice requirements of Code Section 402(f) or
      the mandatory withholding requirements of Code Section 3405(c). If a
      non-spouse beneficiary receives a distribution from the Plan, the
      distribution is not eligible for a 60-day (non-direct)
      rollover.

            

    

    

    
      
        
           

        

        
          93

          
            

          

        

        
           

        

      

    

    

    
      	
              4.3

            	
              Trust beneficiary. If
      the Participant’s named beneficiary is a trust, the Plan may make a direct
      rollover to an IRA on behalf of the trust, provided the trust satisfies
      the requirements to be a designated beneficiary within the meaning of Code
      Section 401(a)(9)(E).

            

    

    

    
      	
              4.4

            	
              Required minimum distributions
      not eligible for rollover. A non-spouse beneficiary may not roll
      over an amount that is a required minimum distribution, as determined
      under applicable Treasury Regulations and other Internal Revenue Service
      guidance. If the Participant dies before his or her required beginning
      date and the non-spouse beneficiary rolls over to an IRA the maximum
      amount eligible for rollover, the beneficiary may elect to use either the
      5-year rule or the life expectancy rule, pursuant to Treasury Regulations
      Section 1.401(a)(9)-3, A-4(c), in determining the required minimum
      distributions from the IRA that receives the non-spouse beneficiary’s
      distribution.

            

    

    

    ARTICLE
V

    ROLLOVER
OF AFTER-TAX AMOUNTS

    

    
      	
              5.1

            	
              Direct rollover to qualified
      plan/403(b) plan. For taxable years beginning after December 31,
      2006, a Participant may elect to transfer employee after-tax contributions
      by means of a direct rollover to a qualified plan or to a 403(b) plan that
      agrees to account separately for amounts so transferred (including
      interest thereon), including accounting separately for the portion of such
      distribution which is includible in gross income and the portion of such
      distribution which is not includible in gross
  income.

            

    

    

    ARTICLE
VI

    PARTICIPANT
DISTRIBUTION NOTIFICATION

    

    
      	
              6.1

            	
              180-day notification
      period. For any distribution notice issued in Plan Years beginning
      after December 31, 2006, any reference to the 90-day maximum notice period
      requirements of Code Sections 402(f) (the rollover notice), 411(a)(11)
      (Participant’s consent to distribution), and 417 (notice regarding the
      joint and survivor annuity rules) is changed to 180
  days.

            

    

    

    
      	
              6.2

            	
              Effect of delay of
      distribution. Notices given to Participants pursuant to Code
      Section 411(a)(11) in Plan Years beginning after December 31, 2006 shall
      include a description of how much larger benefits will be if the
      commencement of distributions is
deferred.

            

    

    

    
      	
              6.3

            	
              Explanation of relative
      value. Notices to Participants shall include the relative values of
      the various optional forms of benefit, if any, under the Plan as provided
      in Treasury Regulations Section 1.417(a)-3. This provision is effective as
      of the applicable effective date set forth in Treasury Regulations (i.e., to qualified
      pre-retirement survivor annuity explanations provided on or after July 1,
      2004; to qualified joint and survivor annuity explanations with respect to
      any distribution with an annuity starting date that is on or after
      February 1, 2006, or on or after October 2, 2004 with respect to any
      optional form of benefit that is subject to the requirements of Code
      Section 417(e)(3) if the actuarial present value of that optional form is
      less than the actuarial present value as determined under Code Section
      417(e)(3)).

            

    

    

    ARTICLE
VII

    QUALIFIED
DOMESTIC RELATIONS ORDERS

    

    
      
        
           

        

        
          94

          
            

          

        

        
           

        

      

    

    

    
      	
              7.1

            	
              Permissible QDROs.
      Effective on or after April 6, 2007, a domestic relations order that
      otherwise satisfies the requirements for a qualified domestic relations
      order (QDRO) will not fail to be a QDRO: (i) solely because the order is
      issued after, or revises, another domestic relations order or QDRO; or
      (ii) solely because of the time at which the order is issued, including
      issuance after the annuity starting date or after the Participant’s
      death.

            

    

    

    
      	
              7.2

            	
              Other QDRO requirements
      apply. A domestic relations order described in Section 7.1 is
      subject to the same requirements and protections that apply to
      QDROs.

            

    

    

    ARTICLE
VIII

    PRE-RETIREMENT
PENSION IN-SERVICE DISTRIBUTIONS

    

    
      	
              8.1

            	
              Age 62 distributions. If
      elected in Amendment Section 2.4, then effective as of the date specified
      therein, a Participant who has attained the specified age and who is not
      separated from employment may elect to receive a distribution of his or
      her vested Accrued Benefit.

            

    

    

    ARTICLE
IX

    QUALIFIED
OPTIONAL SURVIVOR ANNUITY

    

    
      	
              9.1

            	
              Right to Elect Qualified
      Optional Survivor Annuity. Effective with respect to Plan Years
      beginning after December 31, 2007, a Participant who elects to waive the
      qualified joint and survivor annuity form of benefit under the Plan shall
      be entitled to elect the “qualified optional survivor annuity” at any time
      during the applicable election period. Furthermore, the written
      explanation of the joint and survivor annuity shall explain the terms and
      conditions of the “qualified optional survivor
  annuity.”

            

    

    

    
      	
              9.2

            	
              Definition of Qualified
      Optional Survivor Annuity.

            

    

    

    
      	
               
      

            	
              (a)

            	
              For
      purposes of this Article, the term “qualified optional survivor annuity”
      means an annuity:

            

    

    

    
      	
               
      

            	
              (1)

            	
              For
      the life of the Participant with a survivor annuity for the life of the
      Participant’s spouse which is equal to the “applicable percentage” of the
      amount of the annuity which is payable during the joint lives of the
      Participant and the Participant’s spouse,
and

            

    

    

    
      	
               
      

            	
              (2)

            	
              Which
      is the actuarial equivalent of a single annuity for the life of the
      Participant.

            

    

    

    Such term
also includes any annuity in a form having the effect of an annuity described in
the preceding sentence.

    

    
      	
               
      

            	
              (b)

            	
              For
      purposes of this Section, the “applicable percentage” is based on the
      survivor annuity percentage (i.e., the percentage
      which the survivor annuity under the Plan’s qualified joint and survivor
      annuity bears to the annuity payable during the joint lives of the
      Participant and the spouse). If the survivor annuity percentage is less
      than seventy-five percent (75%), then the “applicable percentage” is
      seventy-five percent (75%); otherwise the “applicable percentage” is fifty
      percent (50%).

            

    

    

    
      
        
           

        

        
          95

          
            

          

        

        
           

        

      

    

    

    ARTICLE
X

    DIRECT
ROLLOVER TO ROTH IRA

    

    
      	
              10.1

            	
              Roth IRA rollover. For
      distributions made after December 31, 2007, a Participant or beneficiary
      may elect to roll over directly an “eligible rollover distribution” to a
      Roth IRA described in Code Section 408A(b). For this purpose, the term
      “eligible rollover distribution” includes a rollover distribution
      described in Article V, if
applicable.

            

    

    

    ARTICLE
XI

    TOP-HEAVY
PROVISIONS

    

    
      	
              11.1

            	
              Severance from employment.
      Effective for any Plan Year beginning after December 31, 2001, the
      provisions of the Plan setting forth the top-heavy provisions of Code
      Section 416 are modified by substituting the term “separation from
      service” with “severance from
employment.”

            

    

    

    ARTICLE
XII

    BENEFIT
RESTRICTIONS

    

    
      	
              12.1

            	
              Effective Date and Application
      of Section.

            

    

    

    
      	
               
      

            	
              (a)

            	
              Effective
      Date. The provisions of this Section apply to Plan Years beginning after
      December 31, 2007.

            

    

    

    
      	
               
      

            	
              (b)

            	
              This
      Section only applies to single employer plans (a plan that is not a
      multiemployer plan within the meaning of Code Section 414(f)) and does not
      apply to a plan maintained pursuant to one or more collective bargaining
      agreements between employee representatives and one or more employers.
      Furthermore, this Section shall not apply to for the first five (5) Plan
      Years of the Plan. For purposes of this subsection, the term Plan shall
      include any predecessor plan.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Notwithstanding
      anything in this Section to the contrary, the provision of Code Section
      436 and the Regulations thereunder are incorporated herein by
      reference.

            

    

    

    
      	
               
      

            	
              (d)

            	
              For
      Plans that have a valuation date other than the first day of the Plan
      Year, the provisions of Code Section 436 and this Article will applied in
      accordance with Regulations.

            

    

    

    
      	
              12.2

            	
              Funding-Based Limitation on
      Shutdown Benefits and Other Unpredictable Contingent Event
      Benefits

            

    

    

    
      	
               
      

            	
              (a)

            	
              In
      general. If a Participant is entitled to an “unpredictable contingent
      event benefit” payable with respect to any event occurring during any Plan
      Year, then such benefit may not be provided if the “adjusted funding
      target attainment percentage” for such Plan Year (1) is less than sixty
      percent (60%) or, (2) would be less than sixty percent (60%) percent
      taking into account such
occurrence.

            

    

    

    
      
        
           

        

        
          96

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (b)

            	
              Exemption.
      Subsection (a) shall cease to apply with respect to any Plan Year,
      effective as of the first day of the Plan Year, upon payment by the
      Employer of a contribution (in addition to any minimum required
      contribution under Code Section 430) equal
to:

            

    

     

    
      	
               
      

            	
              (1)

            	
              in
      the case of Section 12.2(a)(1) above, the amount of the increase in the
      funding target of the Plan (under Code Section 430) for the Plan Year
      attributable to the occurrence referred to in Subsection (a),
      and

            

    

    

    
      	
               
      

            	
              (2)

            	
              in
      the case of 12.2(a)(2) above, the amount sufficient to result in an
      “adjusted funding target attainment percentage” of sixty percent
      (60%).

            

    

    

    
      	
               
      

            	
              (c)

            	
              Unpredictable
      contingent event benefit. For purposes of this subsection, the term
      “unpredictable contingent event benefit” means any benefit payable solely
      by reason of:

            

    

     

    
      	
               
      

            	
              (1)

            	
              a
      plant shutdown (or similar event, as determined by the Secretary of the
      Treasury), or

            

    

    

    
      	
               
      

            	
              (2)

            	
              an
      event other than the attainment of any age, performance of any service,
      receipt or derivation of any compensation, or occurrence of death or
      disability.

            

    

    

    
      	
              12.3

            	
              Limitations on Plan Amendments
      Increasing Liability for
Benefits

            

    

    

    
      	
               
      

            	
              (a)

            	
              In
      general. No amendment which has the effect of increasing liabilities of
      the Plan by reason of increases in benefits, establishment of new
      benefits, changing the rate of benefit accrual, or changing the rate at
      which benefits become nonforfeitable may take effect during any Plan Year
      if the “adjusted funding target attainment percentage” for such Plan Year
      is:

            

    

    

    
      	
               
      

            	
              (1)

            	
              less
      than eighty percent (80%), or

            

    

    

    
      	
               
      

            	
              (2)

            	
              would
      be less than eighty percent (80%) taking into account such
      amendment.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Exemption.
      Section 12.3(a) above shall cease to apply with respect to any Plan Year,
      effective as of the first day of the Plan Year (or if later, the effective
      date of the amendment), upon payment by the Employer of a contribution (in
      addition to any minimum required contribution under Code Section 430)
      equal to--

            

    

    

    
      	
               
      

            	
              (A)

            	
              in
      the case of paragraph Section 12.3(a)(1) above, the amount of the increase
      in the funding target of the Plan (under Code Section 430) for the Plan
      Year attributable to the amendment,
and

            

    

    

    
      	
               
      

            	
              (B)

            	
              in
      the case of paragraph Section 12.3(a)(2) above, the amount sufficient to
      result in an “adjusted funding target attainment percentage” of eighty
      percent (80%).

            

    

    

    
      	
               
      

            	
              (c)

            	
              Exception
      for certain benefit increases. Subsection (a) shall not apply to any
      amendment which provides for an increase in benefits under a formula which
      is

            

    

    

    
      
        
           

        

        
          97

          
            

          

        

        
           

        

      

    

    

    not based
on a Participant’s compensation, but only if the rate of such increase is not in
excess of the contemporaneous rate of increase in average wages of Participants
covered by the amendment.

    

    
      	
              12.4

            	
              Limitations on Accelerated
      Benefit Distributions

            

    

    

    
      	
               
      

            	
              (a)

            	
              Funding
      percentage less than sixty percent (60%). If the Plan’s “adjusted funding
      target attainment percentage” for a Plan Year is less than sixty percent
      (60%), then the Plan may not pay any “prohibited payment” after the
      valuation date for the Plan Year.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Bankruptcy.
      During any period in which the Employer is a debtor in a case under Title
      11, United States Code, or similar Federal or State law, the Plan may not
      pay any “prohibited payment.” The preceding sentence shall not apply on or
      after the date on which the enrolled actuary of the Plan certifies that
      the “adjusted funding target attainment percentage” of the Plan is not
      less than one hundred percent
(100%).

            

    

    

    
      	
               
      

            	
              (c)

            	
              Limited
      payment if percentage at least sixty percent (60%) but less than eighty
      percent (80%) percent.

            

    

    

    
      	
               
      

            	
              (1)

            	
              In
      general. If the Plan’s “adjusted funding target attainment percentage” for
      a Plan Year is sixty percent (60%) or greater but less than eighty percent
      (80%), then the Plan may not pay any “prohibited payment” after the
      valuation date for the Plan Year to the extent the amount of the payment
      exceeds the lesser of:

            

    

    

    
      	
               
      

            	
              (A)

            	
              fifty
      percent (50%) of the amount of the payment which could be made without
      regard to this subsection, or

            

    

    

    
      	
               
      

            	
              (B)

            	
              the
      present value (determined under guidance prescribed by the Pension Benefit
      Guaranty Corporation, using the interest and mortality assumptions under
      Code Section 417(e)) of the maximum guarantee with respect to the
      participant under ERISA Section
4022.

            

    

    

    
      	
               
      

            	
              (2)

            	
              One-time
      application.

            

    

    

    
      	
               
      

            	
              (A)

            	
              In
      general. Only one “prohibited payment” meeting the requirements of
      subsection (1) may be made with respect to any Participant during any
      period of consecutive Plan Years to which the limitations under either
      Section 12.4(a) or Section 12.4(b) or this paragraph
    applies.

            

    

    

    
      	
               
      

            	
              (B)

            	
              Treatment
      of beneficiaries. For purposes of this subparagraph, a Participant and any
      Beneficiary (including an alternate payee, as defined in Code Section
      414(p)(8)) shall be treated as one Participant.  If the Accrued
      Benefit of a Participant is allocated to such an alternate payee and one
      or more other persons, the amount under Section 12.4(c)(1) shall be
      allocated among such persons in the same manner as the Accrued Benefit is
      allocated

            

    

    

    
      
        
           

        

        
          98

          
            

          

        

        
           

        

      

    

    

    unless
the qualified domestic relations order (as defined in Code Section 414(p)(1)(A))
provides otherwise.

    

    
      	
               
      

            	
              (d)

            	
              Exception.
      This subsection shall not apply for any Plan Year if the terms of the Plan
      (as in effect for the period beginning on September 1, 2005, and ending
      with such Plan Year) provide for no benefit accruals with respect to any
      Participant during such period.

            

    

    

    
      	
               
      

            	
              (e)

            	
              “Prohibited
      payment.” For purposes of this subsection, the term “prohibited payment”
      means:

            

    

    

    
      	
               
      

            	
              (1)

            	
              any
      payment, in excess of the monthly amount paid under a single life annuity
      (plus any Social Security supplements described in the last sentence of
      Code Section 411(a)(9)), to a Participant or Beneficiary whose Annuity
      Starting Date occurs during any period a limitation under Section 12.4(a)
      or Section 12.4(b) is in effect,

            

    

    

    
      	
               
      

            	
              (2)

            	
              any
      payment for the purchase of an irrevocable commitment from an insurer to
      pay benefits, and

            

    

    

    
      	
               
      

            	
              (3)

            	
              any
      other payment specified by the Secretary by
  Regulations.

            

    

    

    Such term
shall not include the payment of a benefit which under Code Section 411(a)(11)
may be immediately distributed without the consent of the
Participant.

    

    
      	
              12.5

            	
              Limitation on Benefit Accruals
      for Plans with Severe Funding
Shortfalls

            

    

    

    
      	
               
      

            	
              (a)

            	
              In
      general. If the Plan’s “adjusted funding target attainment percentage” for
      a Plan Year is less than sixty percent (60%), benefit accruals under the
      Plan shall cease as of the valuation date for the Plan
    Year.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Exemption.
      Section 12.5(a) shall cease to apply with respect to any Plan Year,
      effective as of the first day of the Plan Year, upon payment by the
      Employer of a contribution (in addition to any minimum required
      contribution under Code Section 430) equal to the amount sufficient to
      result in an “adjusted funding target attainment percentage” of sixty
      percent (60%).

            

    

    

    
      	
               
      

            	
              (c)

            	
              Temporary
      modification of limitation. In the case of the first Plan Year beginning
      during the period beginning on October 1, 2008, and ending on September
      30, 2009, the provisions of Section 12.5(a) above shall be applied by
      substituting the Plan’s “adjusted funding target attainment percentage”
      for the preceding Plan Year for such percentage for such Plan Year, but
      only if the “adjusted funding target attainment percentage” for the
      preceding year is greater.

            

    

    

    
      	
              12.6

            	
              Rules Relating to Contributions
      Required to Avoid Benefit
Limitations

            

    

    

    
      	
            	
              (a)

            	
              Security
      may be provided.

            

    

    

    
      	
               
      

            	
              (1)

            	
              In
      general. For purposes of this section, the “adjusted funding target
      attainment percentage” shall be determined by treating as an asset of the
      Plan any security provided by the Employer in a form meeting the
      requirements of Section 12.6(a)(2)
below.

            

    

    

    
      
        
           

        

        
          99

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (2)

            	
              Form
      of security. The security required under Section 12.6(a)(1) shall consist
      of:

            

    

    

    
      	
               
      

            	
              (A)

            	
              a
      bond issued by a corporate surety company that is an acceptable surety for
      purposes of ERISA Section 412,

            

    

    

    
      	
               
      

            	
              (B)

            	
              cash,
      or United States obligations which mature in three (3) years or less, held
      in escrow by a bank or similar financial institution,
  or

            

    

    

    
      	
               
      

            	
              (C)

            	
              such
      other form of security as is satisfactory to the Secretary and the parties
      involved.

            

    

    

    
      	
               
      

            	
              (3)

            	
              Enforcement.
      Any security provided under Section 12.6(a)(1) may be perfected and
      enforced at any time after the earlier
of:

            

    

    

    
      	
               
      

            	
              (A)

            	
              the
      date on which the Plan terminates,

            

    

    

    
      	
               
      

            	
              (B)

            	
              if
      there is a failure to make a payment of the minimum required contribution
      for any Plan Year beginning after the security is provided, the due date
      for the payment under Code Section 430(j),
or

            

    

    

    
      	
               
      

            	
              (C)

            	
              if
      the “adjusted funding target attainment percentage” is less than sixty
      percent (60%) for a consecutive period of 7 years, the valuation date for
      the last year in the period.

            

    

    

    
      	
               
      

            	
              (4)

            	
              Release
      of security. The security shall be released (and any amounts thereunder
      shall be refunded together with any interest accrued thereon) at such time
      as the Secretary may prescribe in Regulations, including Regulations for
      partial releases of the security by reason of increases in the “adjusted
      funding target attainment
percentage.”

            

    

    

    
      	
               
      

            	
              (b)

            	
              Prefunding
      balance or funding standard carryover balance may not be used. No
      prefunding balance or funding standard carryover balance under Code
      Section 430(f) may be used under Section 12.2, 12.3, or 12.5 to satisfy
      any payment an Employer may make under any such subsection to avoid or
      terminate the application of any limitation under such
      subsection.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Deemed
      reduction of funding balances:

            

    

     

    
      	
               
      

            	
              (1)

            	
              In
      general. Subject to Section 12.6(a)(3) above, in any case in which a
      benefit limitation under 12.2, 12.3, 12.4 or 12.5  would (but
      for this subparagraph and determined without regard to Section 12.2(b),
      12.3(b), or 12.5(b)) apply to such Plan for the Plan Year, the Employer
      shall be treated for purposes of this title as having made an election
      under Code Section 430(f) to reduce the prefunding balance or funding
      standard carryover balance by such amount as is necessary for such benefit
      limitation to not apply to the Plan for such Plan
  Year.

            

    

    

    
      	
               
      

            	
              (2)

            	
              Exception
      for insufficient funding balances. Section 12.6(c)(1) shall not apply with
      respect to a benefit limitation for any Plan Year if
  the

            

    

    

    
      
        
           

        

        
          100

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              application
      of Section 12.6(c)(1) would not result in the benefit limitation not
      applying for such Plan Year.

            

    

    

    
      	
              12.7

            	
              Presumed Underfunding for
      Purposes of Benefit
Limitations

            

    

    

    
      	
               
      

            	
              (a)

            	
              Presumption
      of continued underfunding. In any case in which a benefit limitation under
      Section 12.2, 12.3, 12.4 or 12.5 has been applied to a Plan with respect
      to the Plan Year preceding the current Plan Year, the “adjusted funding
      target attainment percentage” of the Plan for the current Plan Year shall
      be presumed to be equal to the “adjusted funding target attainment
      percentage” of the Plan for the preceding Plan Year until the enrolled
      actuary of the Plan certifies the actual “adjusted funding target
      attainment percentage” of the Plan for the current Plan
    Year.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Presumption
      of underfunding after 10th month. In any case in which no certification of
      the “adjusted funding target attainment percentage” for the current Plan
      Year is made with respect to the Plan before the first day of the 10th
      month of such year, for purposes of Section 12.2, 12.3, 12.4 or 12.5, such
      first day shall be deemed, for purposes of such subsection, to be the
      valuation date of the Plan for the current Plan Year and the Plan’s
      “adjusted funding target attainment percentage” shall be conclusively
      presumed to be less than sixty percent (60%) as of such first
      day.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Presumption
      of underfunding after 4th month for nearly underfunded plans. In any case
      in which:

            

    

    

    
      	
               
      

            	
              (1)

            	
              a
      benefit limitation under subsection Section 12.2, 12.3, 12.4 or 12.5 did
      not apply to a Plan with respect to the Plan Year preceding the current
      Plan Year, but the “adjusted funding target attainment percentage” of the
      Plan for such preceding Plan Year was not more than ten (10) percentage
      points greater than the percentage which would have caused such subsection
      to apply to the Plan with respect to such preceding Plan Year,
      and

            

    

    

    
      	
               
      

            	
              (2)

            	
              as
      of the first day of the 4th month of the current Plan Year, the enrolled
      actuary of the Plan has not certified the actual “adjusted funding target
      attainment percentage” of the Plan for the current Plan Year, until the
      enrolled actuary so certifies, such first day shall be deemed, for
      purposes of such subsection, to be the valuation date of the Plan for the
      current Plan Year and the “adjusted funding target attainment percentage”
      of the Plan as of such first day shall, for purposes of such subsection,
      be presumed to be equal to ten (10) percentage points less than the
      “adjusted funding target attainment percentage” of the Plan for such
      preceding Plan Year.

            

    

    

    
      	
              12.8

            	
              Treatment of Plan as of Close
      of Prohibited or Cessation Period. The following provisions apply
      for purposes of applying this
Section.

            

    

    

    
      	
               
      

            	
              (a)

            	
              Operation
      of Plan after period. Unless otherwise elected in this Amendment Section
      2.5, payments and accruals will resume effective as of the day following
      the close of the period for which any limitation of payment or accrual of
      benefits under Section 12.4 or 12.5
applies.

            

    

    

    
      
        
           

        

        
          101

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (b)

            	
              Treatment
      of affected benefits. Nothing in this Section 12.8 shall be construed as
      affecting the Plan’s treatment of benefits which would have been paid or
      accrued but for this Section.

            

    

    

    
      	
              12.9

            	
              Definitions.

            

    

    

    
      	
               
      

            	
              (a)

            	
              The
      term “funding target attainment percentage” has the same meaning given
      such term by Code Section 430(d)(2), except as otherwise provided herein.
      However, in the case of Plan Years beginning in 2008, the “funding target
      attainment percentage” for the preceding Plan Year may be determined using
      such methods of estimation as the Secretary may
  provide.

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      term “adjusted funding target attainment percentage” means the “funding
      target attainment percentage” which is determined under Section 12.9(a) by
      increasing each of the amounts under subparagraphs (A) and (B) of Code
      Section 430(d)(2) by the aggregate amount of purchases of annuities for
      employees other than highly compensated employees (as defined in Code
      Section 414(q)) which were made by the Plan during the preceding two (2)
      Plan Years.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Application
      to plans which are fully funded without regard to reductions for funding
      balances.

            

    

    

    
      	
               
      

            	
              (1)

            	
              In
      general. In the case of a Plan for any Plan Year, if the “funding target
      attainment percentage” is one hundred percent (100%) or more (determined
      and without regard to the reduction in the value of assets under Code
      Section 430(f)(4)), the “funding target attainment percentage” for
      purposes of Sections 12.9(a) and (b) shall be determined without regard to
      such reduction.

            

    

    

    
      	
               
      

            	
              (2)

            	
              Transition
      rule. Section 12.9(c)(1) shall be applied to Plan Years beginning after
      2007 and before 2011 by substituting for “one hundred percent (100%)” the
      applicable percentage determined in accordance with the following
      table:

            

    

     

    
      
        	
                In
      the case of a Plan Year    

              	 
      	
                The
      applicable percentage is:

              
	
                beginning
      in calendar year:

              	 
      	 
      
	 
      	 
      	 
      
	
                2008

              	 
      	
                92%

              
	
                2009

              	 
      	
                94%

              
	
                2010

              	 
      	
                96%

              

      

       

    

    
      	
               
      

            	
              (3)

            	
              Section
      12.9(c)(2) shall not apply with respect to any Plan Year beginning after
      2008 unless the “funding target attainment percentage” (determined without
      regard to the reduction in the value of assets under Code Section
      430(f)(4)) of the Plan for each preceding Plan Year beginning after 2007
      was not less than the applicable percentage with respect to such preceding
      Plan Year determined under Section
12.9(c)(2).

            

    

    

    
      
        
           

        

        
          102

          
            

          

        

        
           

        

      

    

    

    ARTICLE
XIII

    HEART
ACT PROVISIONS

    

    
      	
              13.1

            	
              Death benefits. In the
      case of a death or disability occurring on or after January 1, 2007, if a
      participant dies while performing qualified military service (as defined
      in Code Section 414(u)), the survivors of the Participant are entitled to
      any additional benefits (other than benefit accruals relating to the
      period of qualified military service) provided under the Plan as if the
      participant had resumed and then terminated employment on account of
      death.

            

    

    

    
      	
              13.2

            	
              Benefit accrual. If,
      pursuant to Amendment Section 2.6, the Employer elects to apply this
      Section 13.2, then for benefit accrual purposes, the Plan treats an
      individual who, on or after January 12, 2007, dies or becomes disabled (as
      defined under the terms of the plan) while performing qualified military
      service with respect to the Employer as if the individual had resumed
      employment in accordance with the individual’s reemployment rights under
      USERRA, on the day preceding death or disability (as the case may be) and
      terminated employment on the actual date of death or
      disability.

            

    

    

    
      	
               
      

            	
              (a)

            	
              Determination of
      benefits. The Plan will determine the amount of Employee
      contributions of an individual treated as reemployed under this Section
      13.2 for purposes of applying Code Section 414(u)(8)(C) on the basis of
      the individual’s average actual employee contributions for the lesser of:
      (i) the 12-month period of service with the Employer immediately prior to
      qualified military service; or (ii) if service with the Employer is less
      than such 12-month period, the actual length of continuous service with
      the Employer.

            

    

    

    
      	
              13.3

            	
              Differential wage
      payments. For years beginning after December 31, 2008, (i) an
      individual receiving a differential wage payment, as defined by Code
      Section 3401(h)(2), shall be treated as an Employee of the Employer making
      the payment, (ii) the differential wage payment shall be treated as
      compensation, and (iii) the Plan shall not be treated as failing to meet
      the requirements of any provision described in Code Section 414(u)(1)(C)
      by reason of any contribution or benefit which is based on the
      differential wage payment.

            

    

    

    ARTICLE
XIV

    CHANGE
IN APPLICABLE INTEREST RATE AND

    APPLICABLE
MORTALITY ASSUMPTION

    

    
      	
              14.1

            	
              Effective date. Except
      as provided by the Pension Benefit Guaranty Corporation (PBGC) and IRS,
      the limitations of this Article shall first apply in determining the
      amount payable to a Participant having an annuity starting date in a Plan
      Year beginning on or after January 1,
2008.

            

    

    

    
      	
              14.2

            	
              Applicable interest
      rate. For purposes of the Plan’s provisions relating to the
      calculation of the present value of a benefit payment that is subject to
      Code Section 417(e), any provision prescribing the use of the annual rate
      of interest on 30-year U.S. Treasury securities shall be implemented by
      instead using the rate of interest determined by applicable interest rate
      described by Code Section 417(e) after its amendment by PPA. Specifically,
      the applicable interest rate shall be the adjusted first, second, and
      third segment rates applied under the rules similar to the rules of Code
      Section 430(h)(2)(C) for the calendar month (lookback month) before the
      first day of

            

    

    

    
      
        
           

        

        
          103

          
            

          

        

        
           

        

      

    

    

    the Plan
Year in which the annuity starting date occurs (stability period), or such other
lookback month and stability period as elected in Amendment Section 2.7. For
this purpose, the first, second, and third segment rates are the first, second,
and third segment rates which would be determined under Code Section
430(h)(2)(C) if:

    

    
      	
               
      

            	
              (a)

            	
              Code
      Section 430(h)(2)(D) were applied by substituting the average yields for
      the month described in the preceding paragraph for the average yields for
      the 24-month period described in such section,
  and

            

    

    

    
      	
               
      

            	
              (b)

            	
              Code
      Section 430(h)(2)(G)(i)(II) were applied by substituting “Section
      417(e)(3)(A)(ii)(II)” for “Section 412(b)(5)(B)(ii)(II),”
    and

            

    

    

    
      	
               
      

            	
              (c)

            	
              The
      applicable percentage under Code Section 430(h)(2)(G) is treated as being
      20% in 2008, 40% in 2009, 60% in 2010, and 80% in
  2011.

            

    

    

    
      	
              14.3

            	
              Applicable mortality
      assumption. For purposes of the Plan’s provisions relating to the
      calculation of the present value of a benefit payment that is subject to
      Code Section 417(e), any provision directly or indirectly prescribing the
      use of the mortality table described in Revenue Ruling 2001-62 shall be
      amended to prescribe the use of the applicable annual mortality table
      within the meaning of Code Section 417(e)(3)(B), as initially described in
      Revenue Ruling 2007-67.

            

    

    

    
      
        
           

        

        
          104

          
            

          

        

        
           

        

      

    

    

    ARTICLE
XV

    CASH
BALANCE PLAN PROVISIONS

     

    

    
      	
              15.1

            	
              Effective date. If
      elected in Amendment Section 2.8, the provisions of this Article shall be
      effective with respect to distributions made after August 17, 2006, except
      as otherwise specified in this
Article.

            

    

    

    
      	
              15.2

            	
              Determination of present value
      of accrued benefit. Notwithstanding any provision of the Plan to
      the contrary (including the Plan provisions relating to Code Section
      417(e)), effective with respect to distributions made after August 17,
      2006, the present value of a participant’s accrued benefit for purposes of
      making a distribution of a Participant’s entire vested accrued benefit
      (including for purposes of complying with the requirements of Code Section
      417(e)), shall be equal to the Participant’s hypothetical account
      balance.

            

    

    

    Notwithstanding
the foregoing, the present value of a Participant’s accrued benefit for purposes
of making a distribution of a Participant’s entire vested accrued benefit shall
also include the actuarial equivalent (using the provisions of the Plan for
determining actuarial equivalence) of the excess, if any, of the Participant’s
accrued benefit as of the determination date less the portion of the accrued
benefit attributable to the Participant’s hypothetical account balance (i.e., the portion of the
accrued benefit attributable to the top-heavy minimum benefit).

    

    
      	
              15.3

            	
              Vesting. Except as
      otherwise elected in Amendment Section 2.8, the Plan’s vesting schedule is
      modified to the extent necessary to provide that all Participants who have
      an Hour of Service after the effective date of this subsection and who are
      credited with at least three (3) years of service for vesting purposes
      shall be one hundred percent (100%) vested in their accrued benefits
      derived from Employer contributions. The provisions of this subsection are
      generally effective for Plan Years ending after June 29, 2005. However,
      for plans in existence on June 29, 2005, this subsection shall only be
      effective with respect to Plan Years, and Participants who have an Hour of
      Service, after December 31, 2007.

            

    

    

    
      	
              15.4

            	
              Market Rate of Interest.
      The interest rate used for accumulating Participants’ hypothetical account
      balances shall not exceed a market rate of return, and regardless of the
      rate specified in the Plan or in Amendment Section 2.8, an interest credit
      (or equivalent amount) of less than zero shall in no event result in the
      account balance or similar amount being less than the aggregate amount of
      contributions credited to the hypothetical account. Notwithstanding the
      foregoing, upon termination of the
Plan:

            

    

    

    
      	
               
      

            	
              (a)

            	
              If
      the interest credit rate (or an equivalent amount) under the Plan is a
      variable rate, then the rate of interest used to determine accrued
      benefits under the Plan shall be equal to the average of the rates of
      interest used under the Plan during the 5-year period ending on the
      termination date; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      interest rate and mortality table used to determine the amount of any
      benefit under the Plan payable in the form of an annuity payable at normal
      retirement age shall be the rate and table specified under the Plan for
      such

            

    

    

    
      
        
           

        

        
          105

          
            

          

        

        
           

        

      

    

    

    purpose
as of the termination date, except that if such interest rate is a variable
rate, the interest rate shall be determined under the rules of subclause
(a).

    

    THIS
AMENDMENT has been executed this    24  
 day of   
November   , 2009.

    

    
      	 
      	
              FIRST
      BANCORP

            
	 
      	 
      
	 
      	 
      
	 
      	
              By: 
      /s/ Timothy S. Maples

            
	 
      	
              Authorized
      Representative of Employer

            

    

    

    /s/
Delores George

    Witness

    

    
      
        
           

        

        
          106

          
            

          

        

        
           

        

      

    

    

    AMENDMENT
FOR

     

    FINAL
415 REGULATIONS, PENSION FUNDING EQUITY ACT

     

    AND
FINAL 411 REGULATIONS

    
 

    ARTICLE
I

    PREAMBLE

     

    
      	
              1.1

            	
              Effective date of
      Amendment. This Amendment is effective as indicated herein for the
      respective provisions.

            

    

     

    
      	
              1.2

            	
              Superseding of inconsistent
      provisions. This Amendment supersedes the provisions of the Plan to
      the extent those provisions are inconsistent with the provisions of this
      Amendment.

            

    

     

    
      	
              1.3

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

            

    

     

    
      	
              1.4

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

            

    

     

    ARTICLE
II

    EMPLOYER
ELECTIONS

     

    The
Employer only needs to complete the questions in this Article II in order to
override the default provisions set forth below. If the Plan will use all of the
default provisions, then the questions in this Article II should be
skipped.

     

    Default Provisions. Unless the
Employer elects otherwise in this Article, the following defaults will
apply:

     

    
      	
               
      

            	
              a.

            	
              The
      transition rule of Section 101(d)(3) of the Pension Funding Equity Act
      (PFEA), as described in IRS Notice 2004-78), will not be
    used.

            

    

     

    
      	
               
      

            	
              b.

            	
              The
      "Defined Benefit Compensation Limitation" is adjusted after a Participant
      has a "Severance from Employment." The "Defined Benefit Dollar Limitation"
      is not adjusted after a Participant has a "Severance from
      Employment."

            

    

     

    
      	
               
      

            	
              c.

            	
              The
      provisions of the Plan setting forth the definition of compensation for
      purposes of Code Section 415 (hereinafter referred to as "415
      Compensation"),

            

    

     

    
      
        
           

        

        
          107

          
            

          

        

        
           

        

      

    

    

    as well
as compensation for purposes of determining highly compensated employees
pursuant to Code Section 414(q) and for top-heavy purposes under Code Section
416 (including the determination of key employees), is modified by (1) including
payments for unused sick, vacation or other leave, (2) including payments from
nonqualified unfunded deferred compensation plans, (3) excluding salary
continuation payments for participants on military service, and (4) excluding
salary continuation payments for disabled participants.

     

    
      	
               
      

            	
              d.

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

            

    

     

    
      	
               
      

            	
              e.

            	
              The
      provision of the Plan setting forth the definition of compensation for
      benefit purposes (hereinafter referred to as "Plan Compensation") is
      modified to provide for the same adjustments to Plan Compensation that are
      made to 415 Compensation pursuant to this
  Amendment.

            

    

     

    
      	
              2.1

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

            

    

     

    415 Compensation. (select all
that apply):

     

    
      	
              a.    
        o

            	
              Exclude
      leave cashouts (Section 3.2(b))

            

    

     

    
      	
              b.     
       o

            	
              Exclude
      deferred compensation (Section
3.2(c))

            

    

     

    
      	
              c.    
        o

            	
              Include
      military continuation payments (Section
3.2(d))

            

    

     

    
      	
              d.     
       o

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

            

    

     

    
      	
              1.     
       o

            	
              For
      Nonhighly Compensated Employees
only

            

    

     

    
      	
              2.    
        o

            	
              For
      all participants and the salary continuation will continue for the
      following fixed or determinable period:
      ________________________________

            

    

     

    
      	
              e.    
        o

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

            

    

     

    
      Plan Compensation. (select f.
or all that apply in g. – m.):

    

     

    
      	
              f.     
        o

            	
              No
      change from existing Plan
provisions

            

    

    
       

      OR

    

     

    
      	
              g.    
        o

            	
              Exclude
      all post-severance compensation

            

    

     

    
      	
              h.    
        o

            	
              Exclude
      post-severance regular pay

            

    

     

    
      	
              i.     
        o

            	
              Exclude
      leave cashouts

            

    

     

    
      	
              j.      
       o

            	
              Exclude
      deferred compensation

            

    

     

    
      	
              k.    
        o

            	
              Include
      military continuation payments

            

    

     

    
      	
              l.     
        o

            	
              Include
      disability continuation payments:

            

    

     

    
      	
              1.       o

            	
              For
      Nonhighly Compensated Employees
only

            

    

     

    
      
        
           

        

        
          108

          
            

          

        

        
           

        

      

    

    

    
      	
              2.

            	
                     
      o       For all participants
      and the salary continuation will continue for the following fixed or
      determinable period:
  ________________________________

            

    

     

    
      	
              m.      
       o

            	
              Other
      _________________________
(describe)

            

    

     

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

     

    
      n.
o  
_________________________________
(enter the effective date).

    

     

    
      	
              2.2

            	
              PFEA Transition rule.
      The transition rule of Section 101(d)(3) of the Pension Funding Equity Act
      (PFEA), as described in IRS Notice 2004-78, sets out a transition period
      during which a plan is permitted to pay a benefit subject to Code Section
      417(e)(3) in an amount that would be higher than what is otherwise
      permitted under Code Section 415. This higher amount is the lesser of the
      transition amount as calculated and the benefit calculated under the terms
      of the plan reflecting the limitations of Code Section 415 disregarding
      the enactment of PFEA. The transition rule will not apply unless selected
      below.

            

    

     

    
      	
               
      

            	
              o

            	
              The
      transition rule applies, which sets the 2003 Code Section 415 limit
      calculation as a minimum Code Section 415 limit applicable to the 2004
      Plan Year.

            

    

     

    
      	
              2.3

            	
              Adjustment to compensation
      limitation after date of severance. In the case of a Participant
      who has had a "Severance from Employment" with the Employer, the "Defined
      Benefit Compensation Limitation" applicable to the Participant in any
      "Limitation Year" beginning after the date of severance shall be automatically
      adjusted under Code Section 415(d) unless otherwise elected
      below.

            

    

     

    
      	
               
      

            	
              o

            	
              The
      "Defined Benefit Compensation Limitation" shall not be automatically
      adjusted.

            

    

     

    
      	
              2.4

            	
              Adjustment to dollar limit
      after date of severance. In the case of a Participant who has had a
      "Severance from Employment" with the Employer, the "Defined Benefit Dollar
      Limitation" applicable to the Participant in any "Limitation Year"
      beginning after the date of severance shall not be
      automatically adjusted under Code Section 415(d) unless otherwise elected
      below.

            

    

     

    
      	
               
      

            	
              o

            	
              The
      "Defined Benefit Dollar Limitation" shall be automatically
      adjusted.

            

    

     

    ARTICLE
III

    415
COMPENSATION

     

    
      	
              3.1

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

            

    

     

    
      	
              3.2

            	
              415 Compensation paid after
      "Severance from Employment." 415 Compensation shall be adjusted, as
      set forth herein and as otherwise elected in Article II, for the following
      types of compensation paid after a Participant's "Severance from
      Employment" with the Employer maintaining the Plan (or any other entity
      that is treated as the Employer pursuant to Code Section 414(b),
      (c),

            

    

     

    
      
        
           

        

        
          109

          
            

          

        

        
           

        

      

    

    

    (m) or
(o)). However, amounts described in subsections (a), (b) and (c) below may only
be included in 415 Compensation to the extent such amounts are paid by the later
of 2 1/2 months after "severance from Employment" or by the end of the
"Limitation Year" that includes the date of such "Severance from Employment."
Any other payment of compensation paid after "Severance from Employment" that is
not described in the following types of compensation is not considered 415
Compensation within the meaning of Code Section 415(c)(3), even if payment is
made within the time period specified above.

     

    
      	
               
      

            	
              (a)

            	
              Regular pay. 415
      Compensation shall include regular pay after "Severance from Employment"
      if:

            

    

     

    
      	
               
      

            	
              (1)

            	
              The
      payment is regular compensation for services during the Participant's
      regular working hours, or compensation for services outside the
      Participant's regular working hours (such as overtime or shift
      differential), commissions, bonuses, or other similar payments;
      and

            

    

     

    
      	
               
      

            	
              (2)

            	
              The
      payment would have been paid to the Participant prior to a "Severance from
      Employment" if the Participant had continued in employment with the
      Employer.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Leave cashouts. Leave
      cashouts shall be included in 415 Compensation, unless otherwise elected
      in Section 2.1 of this Amendment, if those amounts would have been
      included in the definition of 415 Compensation if they were paid prior to
      the Participant's "Severance from Employment," and the amounts are payment
      for unused accrued bona fide sick, vacation, or other leave, but only if
      the Participant would have been able to use the leave if employment had
      continued.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Deferred Compensation.
      Unless otherwise elected in Section 2.1 of this Amendment, 415
      Compensation will include deferred compensation if the compensation would
      have been included in the definition of 415 Compensation if it had been
      paid prior to the Participant's "Severance from Employment," and the
      compensation is received pursuant to a nonqualified unfunded deferred
      compensation plan, but only if the payment would have been paid at the
      same time if the Participant had continued in employment with the Employer
      and only to the extent that the payment is includible in the Participant's
      gross income.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Salary continuation payments
      for military service Participants. 415 Compensation does not
      include, unless otherwise elected in Section 2.1 of this Amendment,
      payments to an individual who does not currently perform services for the
      Employer by reason of qualified military service (as that term is used in
      Code Section 414(u)(1)) to the extent those payments do not exceed the
      amounts the individual would have received if the individual had continued
      to perform services for the Employer rather than entering qualified
      military service.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Salary continuation payments
      for disabled Participants.
Unless

            

    

     

    
      
        
           

        

        
          110

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              otherwise
      elected in Section 2.1 of this Amendment, 415 Compensation does not
      include compensation paid to a Participant who is permanently and totally
      disabled (as defined in Code Section 22(e)(3)). If elected, this provision
      shall apply to either just non-highly compensated Participants or to all
      Participants for the period specified in Section 2.1 of this
      Amendment.

            

    

     

    
      	
              3.3

            	
              Administrative delay ("the
      first few weeks") rule. 415 Compensation for a "Limitation Year"
      shall not include, unless otherwise elected in Section 2.1 of this
      Amendment, amounts earned but not paid during the "Limitation Year" solely
      because of the timing of pay periods and pay dates. However, if elected in
      Section 2.1 of this Amendment, 415 Compensation for a "Limitation Year"
      shall include amounts earned but not paid during the "Limitation Year"
      solely because of the timing of pay periods and pay dates, provided the
      amounts are paid during the first few weeks of the next "Limitation Year,"
      the amounts are included on a uniform and consistent basis with respect to
      all similarly situated Participants, and no compensation is included in
      more than one "Limitation Year."

            

    

     

    
      	
              3.4

            	
              Inclusion of certain
      nonqualified deferred compensation amounts. If the Plan's
      definition of Compensation for purposes of Code Section 415 is the
      definition in Regulations Section 1.415(c)-2(b) (Regulations Section
      1.415-2(d)(2) under the Regulations in effect for "Limitation Years"
      beginning prior to July 1, 2007) and the simplified compensation
      definition of Regulations Section 1.415(c)-2(d)(2) (Regulations Section
      1.415-2(d)(10) under the Regulations in effect for "Limitation Years"
      prior to July 1, 2007) is not used, then 415 Compensation shall include
      amounts that are includible in the gross income of a Participant under the
      rules of Code Section 409A or Code Section 457(f)(1)(A) or because the
      amounts are constructively received by the
  Participant.

            

    

     

    
      	
              3.5

            	
              Back Pay. Payments
      awarded by an administrative agency or court or pursuant to a bona fide
      agreement by an Employer to compensate an Employee for lost wages are 415
      Compensation for the "Limitation Year" to which the back pay relates, but
      only to the extent such payments represent wages and compensation that
      would otherwise be included in 415 Compensation under this
      Article.

            

    

     

    
      	
              3.6

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

            

    

     

    ARTICLE
IV

    PLAN
COMPENSATION

     

    
      	
              4.1

            	
              Compensation paid after
      "Severance from Employment." Compensation for purposes of benefits
      (hereinafter referred to as Plan Compensation) shall be adjusted, unless
      otherwise elected in Amendment Section 2.1, in the same manner as 415
      Compensation pursuant to Article III of this Amendment if those amounts
      would have been included in Compensation if they were paid prior tot he
      Participant's "Severance from Employment," except in applying Article III,
      the term "Limitation Year" shall be replaced with the term "Plan Year" and
      the term "415

            

    

     

    
      
        
           

        

        
          111

          
            

          

        

        
           

        

      

    

    

    Compensation"
shall be replaced with the term "Plan Compensation."

     

    
      	
              4.2

            	
              Effective date of Plan
      Compensation provisions. The provisions of this Article shall apply
      for Plan Years beginning on and after July 1, 2007, unless another
      effective date is specified in Section 2.1 of this
    Amendment.

            

    

     

    

     

     

    ARTICLE
V

    FINAL
SECTION 411 REGULATIONS

     

    No
amendment to the plan (including a change in the actuarial basis for determining
optional or early retirement benefits) shall be effective to the extent that it
has the effect of decreasing a Participant's accrued benefit. For purposes of
this paragraph, a plan amendment that has the effect of (1) eliminating or
reducing an early retirement benefit or a retirement-type subsidy, or (2)
eliminating an optional form of benefit, with respect to benefits attributable
to service before the amendment shall be treated as reducing accrued benefits.
In the case of a retirement-type subsidy, the preceding sentence shall apply
only with respect to a Participant who satisfies (either before or after the
amendment) the pre-amendment conditions for the subsidy. Notwithstanding the
preceding sentences, a Participant's Accrued Benefit, early retirement benefit,
retirement-type subsidy, or optional form of benefit may be reduced to the
extent permitted under Code Section 412(c)(8) (for Plan Years beginning on or
before December 31, 2007) or Code Section 412(d)(2) (for Plan Years beginning
after December 31, 2007), or to the extent permitted under Regulations Sections
1.411(d)-3 and 1.411(d)-4. For purposes of this paragraph, a retirement-type
subsidy is the excess, if any, of the actuarial present value of a
retirement-type benefit over the actuarial present value of the Accrued Benefit
commencing at Normal Retirement Age or at actual commencement date, if later,
with both such actuarial present values determined as of the date the
retirement-type benefit commences.

     

     

    ARTICLE
VI

    CODE
SECTION 415 LIMITATIONS

     

    
      	
              6.1

            	
              Annual
      Benefit.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Effective date. The
      limitations of this Article apply in "Limitation Years" beginning on or
      after July 1, 2007, except as otherwise provided
  herein.

            

    

     

    
      	
               
      

            	
              (b)

            	
              "Annual Benefit." The
      “Annual Benefit” otherwise payable to a Participant under the Plan at any
      time shall not exceed the “Maximum Permissible Benefit.” If the benefit
      the Participant would otherwise accrue in a "Limitation Year" would
      produce an “Annual Benefit” in excess of the
  “Maximum

            

    

     

    
      
        
           

        

        
          112

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              Permissible
      Benefit,” then the benefit shall be limited (or the rate of accrual
      reduced) to a benefit that does not exceed the “Maximum Permissible
      Benefit.”

            

    

     

    
      	
               
      

            	
              (c)

            	
              Adjustment if in two defined
      benefit plans. If the Participant is, or has ever been, a
      Participant in another qualified defined benefit plan (without regard to
      whether the plan has been terminated) maintained by the Employer or a
      "Predecessor Employer," the sum of the Participant’s “Annual Benefits”
      from all such plans may not exceed the “Maximum Permissible Benefit.”
      Where the Participant’s employer-provided benefits under all such defined
      benefit plans (determined as of the same age) would exceed the “Maximum
      Permissible Benefit” applicable at that age, the Employer shall limit a
      Participant’s benefit in accordance with the terms of the
      Plans.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Grandfather of limits prior to
      July 1, 2007. The application of the provisions of this Article
      shall not cause the “Maximum Permissible Benefit” for any Participant to
      be less than the Participant’s Accrued Benefit under all the defined
      benefit plans of the Employer or a "Predecessor Employer" as of the end of
      the last "Limitation Year" beginning before July 1, 2007 under provisions
      of the plans that were both adopted and in effect before April 5, 2007.
      The preceding sentence applies only if the provisions of such defined
      benefit plans that were both adopted and in effect before April 5, 2007
      satisfied the applicable requirements of statutory provisions,
      Regulations, and other published guidance relating to Code Section 415 in
      effect as of the end of the last "Limitation Year" beginning before July
      1, 2007, as described in Regulations Section
    1.415(a)-1(g)(4).

            

    

     

    
      	
               
      

            	
              (e)

            	
              Other rules applicable.
      The limitations of this Article shall be determined and applied
      taking into account the rules in Amendment Section
  6.3.

            

    

     

    
      	
              6.2

            	
              Definitions. For
      purposes of this Amendment, the following definitions
    apply.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Annual Benefit. "Annual
      Benefit" means a benefit that is payable annually in the form of a
      "Straight Life Annuity." Except as provided below, where a benefit is
      payable in a form other than a "Straight Life Annuity," the benefit shall
      be adjusted to an actuarially equivalent "Straight Life Annuity" that
      begins at the same time as such other form of benefit and is payable on
      the first day of each month, before applying the limitations of this
      Article. For a Participant who has or will have distributions commencing
      at more than one Annuity Starting Date, the "Annual Benefit" shall be
      determined as of each such Annuity Starting Date (and shall satisfy the
      limitations of this Article as of each such date), actuarially adjusting
      for past and future distributions of benefits commencing at the other
      Annuity Starting Dates. For this purpose, the determination of whether a
      new Annuity Starting Date has occurred shall be made without regard to
      Regulations Section 1.401(a)-20, Q&A 10(d), and with regard to
      Regulations Section 1.415(b)1(b)(1)(iii)(B) and
  (C).

            

    

     

    No
actuarial adjustment to the benefit shall be made for (a) survivor benefits
payable to a surviving spouse under a qualified joint and survivor annuity
to

     

    
      
        
           

        

        
          113

          
            

          

        

        
           

        

      

    

    

    the
extent such benefits would not be payable if the Participant’s benefit were paid
in another form; (b) benefits that are not directly related to retirement
benefits (such as a qualified disability benefit, preretirement incidental death
benefits, and postretirement medical benefits); or (c) the inclusion in the form
of benefit of an automatic benefit increase feature, provided the form of
benefit is not subject to Code Section 417(e)(3) and would otherwise satisfy the
limitations of this Article, and the Plan provides that the amount payable under
the form of benefit in any "Limitation Year" shall not exceed the limits of this
Article applicable at the Annuity Starting Date, as increased in subsequent
years pursuant to Code Section 415(d). For this purpose, an automatic benefit
increase feature is included in a form of benefit if the form of benefit
provides for automatic, periodic increases to the benefits paid in that
form.

     

    The
determination of the "Annual Benefit" shall take into account Social Security
supplements described in Code Section 411(a)(9) and benefits transferred from
another defined benefit plan, other than transfers of distributable benefits
pursuant Regulations Section 1.411(d)-4, Q&A-3(c), but shall disregard
benefits attributable to Employee contributions or rollover
contributions.

     

    Effective
for distributions in Plan Years beginning after December 31, 2003, the
determination of actuarial equivalence of forms of benefit other than a
"Straight Life Annuity" shall be made in accordance with (1) or (2)
below.

     

    
      	
               
      

            	
              (1)

            	
              Benefit forms not subject to
      Code Section 417(e)(3). The "Straight Life Annuity" that is
      actuarially equivalent to the Participant’s form of benefit shall be
      determined under this subsection (1) if the form of the Participant’s
      benefit is either (a) a nondecreasing annuity (other than a "Straight Life
      Annuity") payable for a period of not less than the life of the
      Participant (or, in the case of a qualified pre-retirement survivor
      annuity, the life of the surviving spouse), or (b) an annuity that
      decreases during the life of the Participant merely because of (1) the
      death of the survivor annuitant (but only if the reduction is not below
      50% of the benefit payable before the death of the survivor annuitant), or
      (2) the cessation or reduction of Social Security supplements or qualified
      disability payments (as defined in Code Section
    401(a)(11)).

            

    

     

    
      	
               
      

            	
              (i)

            	
              "Limitation Years" beginning
      before July 1, 2007. For "Limitation Years" beginning before July
      1, 2007, the actuarially equivalent "Straight Life Annuity" is equal to
      the annual amount of the "Straight Life Annuity" commencing at the same
      Annuity Starting Date that has the same actuarial present value as the
      Participant’s form of benefit computed using whichever of the following
      produces the greater annual amount: (I) the interest rate and mortality
      table (or other tabular factor) specified in the Plan for adjusting
      benefits in the same form; and (II) 5% interest rate assumption and the
      applicable mortality table defined in the Plan for that Annuity Starting
      Date.

            

    

     

    
      
        
           

        

        
          114

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (ii)

            	
              "Limitation Years" beginning on
      or after July 1, 2007. For "Limitation Years" beginning on or after
      July 1, 2007, the actuarially equivalent "Straight Life Annuity" is equal
      to the greater of (I) the annual amount of the "Straight Life Annuity" (if
      any) payable to the Participant under the Plan commencing at the same
      Annuity Starting Date as the Participant’s form of benefit; and (II) the
      annual amount of the "Straight Life Annuity" commencing at the same
      Annuity Starting Date that has the same actuarial present value as the
      Participant’s form of benefit, computed using a 5% interest rate
      assumption and the applicable mortality table defined in the Plan for that
      Annuity Starting Date.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Benefit Forms Subject to Code
      Section 417(e)(3). The "Straight Life Annuity" that is actuarially
      equivalent to the Participant’s form of benefit shall be determined under
      this paragraph if the form of the Participant’s benefit is other than a
      benefit form described in Amendment Section 6.2(a)(1) above. In this case,
      the actuarially equivalent "Straight Life Annuity" shall be determined as
      follows:

            

    

     

    
      	
               
      

            	
              (i)

            	
              Annuity Starting Date in Plan
      Years Beginning After 2005. If the Annuity Starting Date of the
      Participant’s form of benefit is in a Plan Year beginning after 2005, the
      actuarially equivalent "Straight Life Annuity" is equal to the greatest of
      (I) the annual amount of the "Straight Life Annuity" commencing at the
      same Annuity Starting Date that has the same actuarial present value as
      the Participant’s form of benefit, computed using the interest rate and
      mortality table (or other tabular factor) specified in the Plan for
      adjusting benefits in the same form; (II) the annual amount of the
      "Straight Life Annuity" commencing at the same Annuity Starting Date that
      has the same actuarial present value as the Participant’s form of benefit,
      computed using a 5.5 percent interest rate assumption and the applicable
      mortality table defined in the Plan; and (III) the annual amount of the
      "Straight Life Annuity" commencing at the same Annuity Starting Date that
      has the same actuarial present value as the Participant’s form of benefit,
      computed using the applicable interest rate and applicable mortality table
      defined in the Plan, divided by
1.05.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Annuity Starting Date in Plan
      Years Beginning in 2004 or 2005. If the Annuity Starting Date of
      the Participant’s form of benefit is in a Plan Year beginning in 2004 or
      2005, except as provided in the transition rule of (iii) below (if
      elected), the actuarially equivalent "Straight Life Annuity" is equal to
      the annual amount of the "Straight Life Annuity" commencing at the same
      annuity starting date that has the same actuarial present value as the
      Participant’s form of benefit, computed using whichever of the following
      produces the greater annual amount: (I) the interest rate and mortality
      table (or other tabular factor) specified in the Plan for adjusting
      benefits in the same

            

    

     

    
      
        
           

        

        
          115

          
            

          

        

        
           

        

      

    

    

    form; and
(II) a 5.5% interest rate assumption and the applicable mortality table defined
in the Plan.

     

    
      	
               
      

            	
              (iii)

            	
              Transition rule. If the
      transitional rule is elected in Amendment Section 2.2, then if the Annuity
      Starting Date of the Participant’s benefit is on or after the first day of
      the first Plan Year beginning in 2004 and before December 31, 2004, the
      application of this Amendment Section 6.2(a)(ii) shall not cause the
      amount payable under the Participant’s form of benefit to be less than the
      benefit calculated under the Plan, taking into account the limitations of
      this Article, except that the actuarially equivalent "Straight Life
      Annuity" is equal to the annual amount of the "Straight Life Annuity"
      commencing at the same Annuity Starting Date that has the same actuarial
      present value as the Participant’s form of benefit, computed using
      whichever of the following produces the greatest annual amount: (I) the
      interest rate and mortality table (or other tabular factor) specified in
      the Plan for adjusting benefits in the same form; (II) the applicable
      interest rate and applicable mortality table defined in the Plan; and (III) the
      applicable interest rate defined in the Plan (as in effect on the last day
      of the last Plan Year beginning before January 1, 2004, under provisions
      of the Plan then adopted and in effect) and the applicable mortality table
      defined in the Plan.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Defined Benefit Compensation
      Limitation. "Defined Benefit Compensation Limitation" means 100% of
      a Participant’s "High Three-Year Average Compensation," payable in the
      form of a "Straight Life Annuity." Unless otherwise elected by the
      Employer in Amendment Section 2.3, in the case of a Participant who has
      had a "Severance from Employment" with the Employer, the "Defined Benefit
      Compensation Limitation" applicable to the Participant in any "Limitation
      Year" beginning after the date of severance shall be automatically
      adjusted by multiplying the limitation applicable to the Participant in
      the prior "Limitation Year" by the annual adjustment factor under Code
      Section 415(d) that is published in the Internal Revenue Bulletin. The
      adjusted compensation limit shall apply to "Limitation Years" ending with
      or within the calendar year of the date of the adjustment, but a
      Participant’s benefits shall not reflect the adjusted limit prior to
      January 1 of that calendar year.

            

    

     

    In the
case of a Participant who is rehired after a "Severance from Employment," the
"Defined Benefit Compensation Limitation" is the greater of 100% of the
Participant’s "High Three-Year Average Compensation," as determined prior to the
"Severance from Employment," as adjusted pursuant to the preceding paragraph, if
applicable; or 100% of the Participant’s "High Three-Year Average Compensation,"
as determined after the "Severance from Employment."

     

    
      	
               
      

            	
              (c)

            	
              Defined Benefit Dollar
      Limitation. "Defined Benefit Dollar Limitation" means, effective
      for "Limitation Years" ending after December 31,
  2001,

            

    

     

    
      
        
           

        

        
          116

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              $160,000,
      automatically adjusted under Code Section 415(d), effective January 1 of
      each year, as published in the Internal Revenue Bulletin, and payable in
      the form of a "Straight Life Annuity." The new limitation shall apply to
      "Limitation Years" ending with or within the calendar year of the date of
      the adjustment, but a Participant’s benefits shall not reflect the
      adjusted limit prior to January 1 of that calendar year. If elected by the
      Employer in Amendment Section 2.4, the automatic annual adjustment of the
      "Defined Benefit Dollar Limitation" under Code 415(d) shall apply to
      Participants who have had a separation from
  employment.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Employer. "Employer"
      means, for purposes of this Article, the Employer that has adopted the
      Plan,  and all members of a controlled group of corporations, as
      defined in Code Section 414(b), as modified by Code Section 415(h)), all
      commonly controlled trades or businesses (as defined in Code Section
      414(c), as modified, except in the case of a brother-sister group of
      trades or businesses under common control, by Code Section 415(h)), or
      affiliated service groups (as defined in Code Section 414(m)) of which the
      adopting Employer is a part, and any other entity required to be
      aggregated with the employer pursuant to Code Section
    414(o).

            

    

     

    
      	
               
      

            	
              (e)

            	
              Formerly Affiliated Plan of the
      Employer. "Formerly Affiliated Plan of the Employer" means a plan
      that, immediately prior to the cessation of affiliation, was actually
      maintained by the Employer and, immediately after the cessation of
      affiliation, is not actually maintained by the Employer. For this purpose,
      "cessation of affiliation" means the event that (i) causes an entity to no
      longer be considered the Employer, such as the sale of a member of a
      controlled group of corporations, as defined in Code Section 414(b), as
      modified by Code Section 415(h), to an unrelated corporation, or (ii)
      causes a plan to not actually be maintained by the Employer, such as
      transfer of plan sponsorship outside a controlled
  group.

            

    

     

    
      	
               
      

            	
              (f)

            	
              High Three-Year Average
      Compensation. "High Three-Year Average Compensation" means the
      average 415 Compensation for the three consecutive Years of Service (or,
      if the Participant has less than three consecutive Years of Service, the
      Participant’s longest consecutive period of service, including fractions
      of years, but not less than one year) with the Employer that produces the
      highest average. A Participant’s 415 Compensation for a Year of Service
      shall not include 415 Compensation in excess of the limitation under Code
      Section 401(a)(17) that is in effect for the calendar year in which such
      Year of Service begins. For purposes of this definition, a Year of Service
      with the Employer is the 12-consecutive month period defined in the Plan
      which is used to determine 415 Compensation under the
  Plan.

            

    

     

    In the
case of a Participant who is rehired by the Employer after a "Severance from
Employment," the Participant’s "High Three-Year Average
Compensation"

     

    
      
        
           

        

        
          117

          
            

          

        

        
           

        

      

    

    

    shall be
calculated by excluding all years for which the Participant performs no services
for and receives no 415 Compensation from the Employer (the break period) and by
treating the years immediately preceding and following the break period as
consecutive.

     

    
      	
               
      

            	
              (g)

            	
              Limitation Year.
      "Limitation Year" means the period specified in the Plan that is
      used to apply the Code Section 415
limitations.

            

    

     

    
      	
               
      

            	
              (h)

            	
              Maximum Permissible Benefit.
      "Maximum Permissible Benefit" means the lesser of the "Defined
      Benefit Dollar Limitation" or the "Defined Benefit Compensation
      Limitation" (both adjusted where required, as provided
    below).

            

    

     

    
      	
               
      

            	
              (1)

            	
              Adjustment
      for Less Than 10 Years of Participation or Service: If the Participant has
      less than 10 years of participation in the Plan, the "Defined Benefit
      Dollar Limitation" shall be multiplied by a fraction -- (i) the numerator
      of which is the number of "Years of Participation" in the Plan (or part
      thereof, but not less than one year), and (ii) the denominator of which is
      ten (10). In the case of a Participant who has less than ten Years of
      Service with the Employer, the "Defined Benefit Compensation Limitation"
      shall be multiplied by a fraction -- (i) the numerator of which is the
      number of "Years of Service" with the Employer (or part thereof, but not
      less than one year), and (ii) the denominator of which is ten
      (10).

            

    

     

    
      	
               
      

            	
              (2)

            	
              Adjustment
      of "Defined Benefit Dollar Limitation" for Benefit Commencement Before Age
      62 or after Age 65: Effective for benefits commencing in "Limitation
      Years" ending after December 31, 2001, the "Defined Benefit Dollar
      Limitation" shall be adjusted if the Annuity Starting Date of the
      Participant’s benefit is before age 62 or after age 65. If the Annuity
      Starting Date is before age 62, the "Defined Benefit Dollar Limitation"
      shall be adjusted under section 6.2(h)(2)(i), as modified by Amendment
      Section 6.2(h)(2)(iii). If the Annuity Starting Date is after age 65, the
      "Defined Benefit Dollar Limitation" shall be adjusted under Amendment
      Section 6.2(h)(2)(ii), as modified by Amendment Section
      6.2(h)(2)(iii).

            

    

     

    
      	
               
      

            	
              (i)

            	
              Adjustment
      of "Defined Benefit Dollar Limitation" for Benefit Commencement Before Age
      62:

            

    

     

    
      	
               
      

            	
              (I)

            	
              "Limitation
      Years" Beginning Before July 1, 2007. If the Annuity Starting Date for the
      Participant’s benefit is prior to age 62 and occurs in a "Limitation Year"
      beginning before July 1, 2007, the "Defined Benefit Dollar Limitation" for
      the Participant’s Annuity Starting Date is the annual amount of a benefit
      payable in the form of a "Straight Life Annuity" commencing at the
      Participant’s Annuity Starting Date that is the actuarial equivalent of
      the "Defined Benefit Dollar Limitation" (adjusted under Amendment Section
      6.2(h)(1) for years of participation less than ten (10), if required) with
      actuarial equivalence computed using whichever
  of

            

    

     

    
      
        
           

        

        
          118

          
            

          

        

        
           

        

      

    

    

    the
following produces the smaller annual amount: (1) the interest rate and
mortality table (or other tabular factor) specified in the Plan; or (2) a
five-percent (5%) interest rate assumption and the applicable mortality table as
defined in the Plan.

     

    
      the
following produces the smaller annual amount: (1) the interest rate and
mortality table (or other tabular factor) specified in the Plan; or (2) a
five-percent (5%) interest rate assumption and the applicable mortality table as
defined in the Plan.

       

      
        	
                 
      

              	
                (II)

              	
                "Limitation
      Years" Beginning on or After July 1,
2007.

              

      

       

      
        	
                 
      

              	
                (A)

              	
                Plan
      Does Not Have Immediately Commencing "Straight Life Annuity" Payable at
      both Age 62 and the Age of Benefit Commencement. If the Annuity Starting
      Date for the Participant’s benefit is prior to age 62 and occurs in a
      "Limitation Year" beginning on or after July 1, 2007, and the Plan does
      not have an immediately commencing "Straight Life Annuity" payable at both
      age 62 and the age of benefit commencement, the "Defined Benefit Dollar
      Limitation" for the Participant’s Annuity Starting Date is the annual
      amount of a benefit payable in the form of a "Straight Life Annuity"
      commencing at the Participant’s Annuity Starting Date that is the
      actuarial equivalent of the "Defined Benefit Dollar Limitation" (adjusted
      under Amendment Section 6.2(h)(1) for years of participation less than ten
      (10), if required) with actuarial equivalence computed using a
      five-percent (5%) interest rate assumption and the applicable mortality
      table for the Annuity Starting Date as defined in the Plan(and expressing
      the Participant’s age based on completed calendar months as of the Annuity
      Starting Date).

              

      

       

      
        	
                 
      

              	
                (B)

              	
                Plan
      Has Immediately Commencing "Straight Life Annuity" Payable at both Age 62
      and the Age of Benefit Commencement. If the Annuity Starting Date for the
      Participant’s benefit is prior to age 62 and occurs in a "Limitation Year"
      beginning on or after July 1, 2007, and the Plan has an immediately
      commencing "Straight Life Annuity" payable at both age 62 and the age of
      benefit commencement, the "Defined Benefit Dollar Limitation" for the
      Participant’s Annuity Starting Date is the lesser of the limitation
      determined under Amendment Section 6.2(h)(2)(i)(II)(A) and the "Defined
      Benefit Dollar Limitation" (adjusted under Amendment Section 6.2(h)(1) for
      years of participation less than ten (10), if required) multiplied by the
      ratio of the annual amount of the immediately commencing "Straight Life
      Annuity" under the Plan at the Participant’s Annuity Starting Date to the
      annual amount of the immediately commencing "Straight Life Annuity" under
      the Plan at age 62, both determined without applying the limitations of
      this article.

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                Adjustment
      of "Defined Benefit Dollar Limitation" for
  Benefit

              

      

    

    

    
      
        
           

        

        
          119

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              Commencement
      After Age 65:

            

    

     

    
      	
               
      

            	
              (I)

            	
              "Limitation
      Years" Beginning Before July 1, 2007. If the Annuity Starting Date for the
      Participant’s benefit is after age 65 and occurs in a Limitation Year
      beginning before July 1, 2007, the "Defined Benefit Dollar Limitation" for
      the Participant’s Annuity Starting Date is the annual amount of a benefit
      payable in the form of a "Straight Life Annuity" commencing at the
      Participant’s Annuity Starting Date that is the actuarial equivalent of
      the "Defined Benefit Dollar Limitation" (adjusted under Amendment Section
      6.2(h)(1) for years of participation less than ten (10), if required) with
      actuarial equivalence computed using whichever of the following produces
      the smaller annual amount: (1) the interest rate and mortality table (or
      other tabular factor) specified in the Plan; or (2) a five-percent (5%)
      interest rate assumption and the applicable mortality table as defined in
      the Plan.

            

    

     

    
      	
               
      

            	
              (II)

            	
              "Limitation
      Years" Beginning Before July 1,
2007.

            

    

     

    
      	
               
      

            	
              (A)

            	
              Plan
      Does Not Have Immediately Commencing "Straight Life Annuity" Payable at
      both Age 65 and the Age of Benefit Commencement. If the annuity starting
      date for the Participant’s benefit is after age 65 and occurs in a
      "Limitation Year" beginning on or after July 1, 2007, and the Plan does
      not have an immediately commencing "Straight Life Annuity" payable at both
      age 65 and the age of benefit commencement, the "Defined Benefit Dollar
      Limitation" at the Participant’s Annuity Starting Date is the annual
      amount of a benefit payable in the form of a "Straight Life Annuity"
      commencing at the Participant’s Annuity Starting Date that is the
      actuarial equivalent of the "Defined Benefit Dollar Limitation" (adjusted
      under Amendment Section 6.2(h)(1)for years of participation less than 10,
      if required), with actuarial equivalence computed using a 5% interest rate
      assumption and the applicable mortality table for that Annuity Starting
      Date as defined in the Plan (and expressing the Participant’s age based on
      completed calendar months as of the Annuity Starting
  Date).

            

    

     

    
      	
               
      

            	
              (B)

            	
              Plan
      Has Immediately Commencing "Straight Life Annuity" Payable at both Age 65
      and the Age of Benefit Commencement. If the Annuity Starting Date for the
      Participant’s benefit is after age 65 and occurs in a "Limitation Year"
      beginning on or after July 1, 2007, and the plan has an immediately
      commencing "Straight Life Annuity" payable at both age 65 and the age of
      benefit commencement, the "Defined Benefit Dollar Limitation" at the
      Participant’s Annuity Starting Date is the lesser of
  the

            

    

     

    
      
        
           

        

        
          120

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              limitation
      determined under Amendment Section 6.2(h)(2)(ii)(II)(A) and the "Defined
      Benefit Dollar Limitation" (adjusted under Amendment Section 6.2(h)(1) for
      years of participation less than ten (10), if required) multiplied by the
      ratio of the annual amount of the adjusted immediately commencing
      "Straight Life Annuity" under the Plan at the Participant’s Annuity
      Starting Date to the annual amount of the adjusted immediately commencing
      "Straight Life Annuity" under the Plan at age 65, both determined without
      applying the limitations of this Article. For this purpose, the adjusted
      immediately commencing "Straight Life Annuity" under the Plan at the
      Participant’s Annuity Starting Date is the annual amount of such annuity
      payable to the Participant, computed disregarding the Participant’s
      accruals after age 65 but including actuarial adjustments even if those
      actuarial adjustments are used to offset accruals; and the adjusted
      immediately commencing "Straight Life Annuity" under the Plan at age 65 is
      the annual amount of such annuity that would be payable under the Plan to
      a hypothetical Participant who is age 65 and has the same accrued benefit
      as the Participant.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Notwithstanding
      the other requirements of this Amendment Section 6.2(h)(2), no adjustment
      shall be made to the "Defined Benefit Dollar Limitation" to reflect the
      probability of a Participant’s death between the Annuity Starting Date and
      age 62, or between age 65 and the Annuity Starting Date, as applicable, if
      benefits are not forfeited upon the death of the Participant prior to the
      Annuity Starting Date. To the extent benefits are forfeited upon death
      before the Annuity Starting Date, such an adjustment shall be made. For
      this purpose, no forfeiture shall be treated as occurring upon the
      Participant’s death if the Plan does not charge Participants for providing
      a qualified preretirement survivor annuity, as defined in Code Section
      417(c), upon the Participant’s
death.

            

    

     

    
      	
               
      

            	
              (3)

            	
              Minimum
      benefit permitted: Notwithstanding anything else in this Section to the
      contrary, the benefit otherwise accrued or payable to a Participant under
      this Plan shall be deemed not to exceed the "Maximum Permissible Benefit"
      if:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      retirement benefits payable for a "Limitation Year" under any form of
      benefit with respect to such Participant under this Plan and under all
      other defined benefit plans (without regard to whether a plan has been
      terminated) ever maintained by the Employer do not exceed $10,000
      multiplied by a fraction – (I) the numerator of which is the Participant’s
      number of Years (or part thereof, but not less than one year) of Service
      (not to exceed ten (10)) with the Employer, and
  (II)

            

    

     

    
      
        
           

        

        
          121

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              the
      denominator of which is ten (10);
and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Employer (or a "Predecessor Employer") has not at any time maintained a
      defined contribution plan in which the Participant participated (for this
      purpose, mandatory Employee contributions under a defined benefit plan,
      individual medical accounts under Code Section 401(h), and accounts for
      post-retirement medical benefits established under Code Section 419A(d)(1)
      are not considered a separate defined contribution
  plan).

            

    

     

    
      	
               
      

            	
              (i)

            	
              Predecessor Employer.
      "Predecessor Employer" means, with respect to a Participant, a former
      employer of such Participant if the Employer maintains a Plan that
      provides a benefit which the Participant accrued while performing services
      for the former employer. A former entity that antedates the Employer is
      also a "Predecessor Employer" with respect to a Participant if, under the
      facts and circumstances, the Employer constitutes a continuation of all or
      a portion of the trade or business of the former entity. For this purpose,
      the formerly affiliated plan rules in Regulations Section 1.415(f)-1(b)(2)
      apply as if the Employer and "Predecessor Employer" constituted a single
      employer under the rules described in Regulations Section 1.415(a)-1(f)(1)
      and (2) immediately prior to the cessation of affiliation (and as if they
      constituted two, unrelated employers under the rules described in
      Regulations Section 1.415(a)-1(f)(1) and (2) immediately after the
      cessation of affiliation) and cessation of affiliation was the event that
      gives rise to the "Predecessor Employer" relationship, such as a transfer
      of benefits or plan sponsorship.

            

    

     

    
      	
               
      

            	
              (j)

            	
              Severance from Employment.
      "Severance from Employment" means, with respect to any individual,
      cessation from being an Employee of the Employer maintaining the Plan. An
      Employee does not have a "Severance from Employment" if, in connection
      with a change of employment, the Employee’s new employer maintains the
      Plan with respect to the Employee.

            

    

     

    
      	
               
      

            	
              (k)

            	
              Straight Life Annuity.
      "Straight Life Annuity" means an annuity payable in equal
      installments for the life of a Participant that terminates upon the
      Participant's death.

            

    

     

    
      	
               
      

            	
              (l)

            	
              Year of Participation.
      "Year of Participation" means, with respect to a Participant, each
      accrual computation period (computed to fractional parts of a year) for
      which the following conditions are met: (1) the Participant is credited
      with at least the number of Hours of Service (or Period of Service if the
      Elapsed Time Method is used) for benefit accrual purposes, required under
      the terms of the Plan in order to accrue a benefit for the accrual
      computation period, and (2) the Participant is included as a Participant
      under the eligibility provisions of the Plan for at least one day of the
      accrual computation period. If these two conditions are met, the portion
      of a "Year of Participation" credited to the Participant shall equal the
      amount of benefit accrual service credited to the Participant for such
      accrual computation period. A Participant who
is

            

    

     

    
      
        
           

        

        
          122

          
            

          

        

        
           

        

      

    

    

    permanently
and totally disabled within the meaning of Code Section 415(c)(3)(C)(i) for an
accrual computation period shall receive a "Year of Participation" with respect
to that period.

     

    In
addition, for a Participant to receive a "Year of Participation" (or part
thereof) for an accrual computation period, the Plan must be established no
later that the last day of such accrual computation period. In no event shall
more than one "Year of Participation" be credited for any 12-month
period.

     

    
      	
               
      

            	
              (m)

            	
              Year of Service. "Year
      of Service" means, for purposes of Amendment Section 6.2(f), each accrual
      computation period (computed to fractional parts of a year) for which a
      Participant is credited with at least the number of Hours of Service (or
      Period of Service if the Elapsed Time Method is used) for benefit accrual
      purposes, required under the terms of the Plan in order to accrue a
      benefit for the accrual computation period, taking into account only
      service with the Employer or a "Predecessor
  Employer."

            

    

     

    
      	
              6.3

            	
              Other
    rules.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Benefits under terminated
      plans. If a defined benefit plan maintained by the Employer has
      terminated with sufficient assets for the payment of benefit liabilities
      of all plan participants and a Participant in the plan has not yet
      commenced benefits under the plan, the benefits provided pursuant to the
      annuities purchased to provide the Participant’s benefits under the
      terminated plan at each possible Annuity Starting Date shall be taken into
      account in applying the limitations of this Article. If there are not
      sufficient assets for the payment of all Participants’ benefit
      liabilities, the benefits taken into account shall be the benefits that
      are actually provided to the Participant under the terminated
      plan.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Benefits transferred from the
      Plan. If a Participant’s benefits under a defined benefit plan
      maintained by the employer are transferred to another defined benefit plan
      maintained by the Employer and the transfer is not a transfer of
      distributable benefits pursuant Regulations Section 1.411(d)-4,
      Q&A-3(c), then the transferred benefits are not treated as being
      provided under the transferor plan (but are taken into account as benefits
      provided under the transferee plan). If a Participant’s benefits under a
      defined benefit plan maintained by the Employer are transferred to another
      defined benefit plan that is not maintained by the Employer and the
      transfer is not a transfer of distributable benefits pursuant to
      Regulations Section 1.411(d)-4, Q&A-3(c), then the transferred
      benefits are treated by the Employer’s Plan as if such benefits were
      provided under annuities purchased to provide benefits under a plan
      maintained by the Employer that terminated immediately prior to the
      transfer with sufficient assets to pay all Participants’ benefit
      liabilities under the plan. If a Participant’s benefits under a defined
      benefit plan maintained by the Employer are transferred to another defined
      benefit plan in a transfer of distributable benefits pursuant to
      Regulations Section 1.411(d)-4, Q&A-3(c), the amount transferred is
      treated as a benefit paid from the transferor
  plan.

            

    

     

    
      
        
           

        

        
          123

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (c)

            	
              Formerly affiliated plans of
      the Employer. A "Formerly Affiliated Plan of an Employer" shall be
      treated as a plan maintained by the Employer, but the formerly affiliated
      plan shall be treated as if it had terminated immediately prior to the
      cessation of affiliation with sufficient assets to pay Participants’
      benefit liabilities under the Plan and had purchased annuities to provide
      benefits.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Plans of a "Predecessor
      Employer." If the Employer maintains a defined benefit plan that
      provides benefits accrued by a Participant while performing services for a
      "Predecessor Employer," then the Participant’s benefits under a plan
      maintained by the "Predecessor Employer" shall be treated as provided
      under a plan maintained by the Employer. However, for this purpose, the
      plan of the "Predecessor Employer" shall be treated as if it had
      terminated immediately prior to the event giving rise to the "Predecessor
      Employer" relationship with sufficient assets to pay Participants’ benefit
      liabilities under the plan, and had purchased annuities to provide
      benefits; the Employer and the "Predecessor Employer" shall be treated as
      if they were a single employer immediately prior to such event and as
      unrelated employers immediately after the event; and if the event giving
      rise to the predecessor relationship is a benefit transfer, the
      transferred benefits shall be excluded in determining the benefits provide
      under the plan of the "Predecessor
Employer."

            

    

     

    
      	
               
      

            	
              (e)

            	
              Special rules. The
      limitations of this Article shall be determined and applied taking into
      account the rules in Regulations Section 1.415(f)-1(d), (e) and
      (h).

            

    

     

    
      	
               
      

            	
              (f)

            	
              Aggregation with Multiemployer
      Plans.

            

    

     

    
      	
               
      

            	
              (1)

            	
              If
      the Employer maintains a multiemployer plan, as defined in Code Section
      414(f), and the multiemployer plan so provides, only the benefits under
      the multiemployer plan that are provided by the Employer shall be treated
      as benefits provided under a plan maintained by the Employer for purposes
      of this Article.

            

    

     

    
      	
               
      

            	
              (2)

            	
              Effective
      for "Limitation Years" ending after December 31, 2001, a multiemployer
      plan shall be disregarded for purposes of applying the compensation
      limitation of Amendment Sections 6.2(b) and 6.2(h)(1) to a plan which is
      not a multiemployer plan.

            

    

     

    

    This
amendment has been executed this   2nd 
 day of   March  ,
2008.

    

    
      	 
      	 
      	
              First
      Bancorp

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
              By:
      /s/ Timothy S. Maples

            
	 
      	 
      	
              Authorized
      Representative

            

    

     

    
      
        
           

        

        
          124

          
            

          

        

        
           

        

      

    

    

    AMENDMENT

    TO
THE

     

    FIRST
BANCORP EMPLOYEES’ PENSION PLAN

     

    

    WHEREAS,
First Bancorp (hereinafter referred to as “the Bank”) previously established the
First Bancorp Employees’ Pension Plan (hereinafter referred to as “the Plan”);
and

     

    WHEREAS,
the Bank is empowered to amend the Plan from time to time;

     

    NOW,
THEREFORE, pursuant to the authority granted the undersigned corporate officer
of First Bancorp by its Board of Directors, the First Bancorp Employees’ Pension
Plan (“the Plan”) is amended as follows:

     

    Effective
June 11, 2009, Section 2.1 Requirements For
Participation is hereby amended by adding the following new subparagraphs
(d) and (e) thereto, as follows:

     

    
      	
               
      

            	
              “(d)

            	
              Employees
      hired by the employer on or after June 11,
2009;

            

    

     

    
      	
               
      

            	
               (e)

            	
              Employees
      of the employer who became employed as a result of the acquisition of
      Cooperative Bank on June 19, 2009.”

            

    

     

     

    IN WITNESS WHEREOF, this
Amendment to the First Bancorp Employees’ Pension Plan is adopted
this  
30th   day of   June  ,
2009, to be effective as stated above.

     

    

    
      	 
      	 
      	
              FIRST
      BANCORP

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	
              By:
      /s/ Jerry L. Ocheltree

            
	 
      	 
      	
              Its:
      President &
      CEO

            

    

    

    
      ATTEST:

    

    

    
      By: /s/
Anna G. Hollers

    

    
      Its:
Secretary, EVP,
COO

    

    

    
      (CORPORATE
SEAL)

    

     

     

    125ex10-17.htm

    Exhibit 10.17

     

     

    

    EMPLOYMENT
AGREEMENT

    

    This
EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of the 20th day of
July, 2009 (the “Effective Date”) by and between EAST BOSTON SAVINGS BANK, a
bank organized under the laws of the Commonwealth of Massachusetts with its
headquarters located in East Boston, Massachusetts (the “Bank”), and Edward J.
Merritt (the “Executive”).

    

    WITNESSETH

    

    WHEREAS, pursuant to an Agreement and
Plan of Merger, dated as of July 20, 2009 (the “Merger Agreement”), between the
Bank, Meridian Interstate Bancorp, Inc., a Massachusetts corporation, Meridian
Financial Services, Incorporated, a Massachusetts mutual holding company and Mt.
Washington Cooperative Bank, a Massachusetts cooperative bank (“MWCB”), MWCB
shall, as of the Merger Effective Time (as defined in the Merger Agreement),
merge with and into the Bank, with the Bank being the surviving entity (the
“Merger”);

    

    WHEREAS, the Executive is currently
employed as President and Chief Executive Officer of MWCB pursuant to an
employment agreement entered into between MWCB and the Executive as of August 1,
2007 (the “MWCB Employment Agreement”) and, effective as of the Merger Effective
Time, the Executive agrees to waive any amounts and benefits under the MWCB
Employment Agreement in consideration for entering into this
Agreement;

    

    WHEREAS,
upon consummation of the Merger, the Bank wishes to provide for the employment
by the Bank of the Executive as of the Effective Date, and the Executive wishes
to serve the Bank as of the Effective Date, on the terms and conditions set
forth in this Agreement; and

     

    WHEREAS,
in order to induce Executive to accept employment with the Bank, the parties
desire to specify the severance benefits which shall be due the Executive by the
Bank in the event that his employment with the Bank is terminated under
specified circumstances.

     

    NOW THEREFORE, in consideration of the
mutual agreements herein contained, and upon the other terms and conditions
hereinafter provided, the parties hereby agree as follows:

    

    1.           Employment. The Bank
agrees to employ the Executive and the Executive agrees to be employed by the
Bank on the terms and conditions set forth in this Agreement, effective as of
the Merger Effective Time.

    

    2.           Duties and
Responsibilities. The Executive shall serve the Bank as President, Mt.
Washington Division, subject to regulatory approval, as a member of the senior
management team and shall serve under the direction of the Board of Directors of
the Bank (the “Board of Directors”) and under the direction of and report to the
Chief Executive Officer of the Bank.  The Executive shall also serve
the Bank in additional services, duties and responsibilities as the Executive
may be requested by the Chief Executive Officer or Board of Directors, including
overseeing the former operations of MWCB.  In such capacity or
capacities, the Executive shall perform such services and duties in connection
with the business, affairs and operations of the Bank as may be assigned or
delegated to the Executive from time to time by or under the

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    authority
of the Chief Executive Officer or Board of Directors, and the Executive shall
adhere to all policies established by the Board of Directors or Committees
thereof at all times.  The Executive’s office shall be located at 455
West Broadway, Boston, Massachusetts.

    

    3.           Term.

    

    (a)           The
term of this Agreement shall be (i) the initial term, consisting of the period
commencing on the Effective Date and ending on the second anniversary of the
Effective Date, plus (ii) any and all extensions of the initial term made
pursuant to this Section 3.

    

    (b)           Commencing
on the first anniversary date of the Effective Date (the “Anniversary Date”) and
continuing on each Anniversary Date thereafter, the term of this Agreement shall
automatically extend for an additional year such that the remaining term shall
be two (2) years, unless written notice of non-renewal is provided to Executive
by the Board at least thirty (30) days prior to any such Anniversary Date, in
which case the term of this Agreement will become fixed and will terminate at
the end of the one (1) year period following the  Anniversary
Date.  Prior to each Anniversary Date, the disinterested members of
the Board will conduct a comprehensive performance evaluation and review of
Executive for purposes of determining whether to allow this Agreement to
automatically extend, and the results thereof will be included in the minutes of
the Board’s meeting.

    

    4.           Compensation and
Benefits. The regular compensation and benefits payable to the Executive
under this Agreement shall be as follows:

    

    (a)           Salary. For all
services rendered by the Executive under this Agreement, the Bank shall pay the
Executive a salary (the “Salary”) at the annual rate of (i) $275,000 for the
first six (6) months following the Effective Date, (ii) $250,000 for the seventh
(7th)
through twelfth (12th)
months following the Effective Date, and (iii) $225,000 commencing on the first
anniversary of the Effective Date, subject to increase from time to time in the
discretion of the Board of Directors. The Salary shall be payable in periodic
installments in accordance with the Bank’s usual practice for its senior
executives.

    

    (b)           Bonus.  The
Executive shall be entitled to participate in an annual incentive program
established by the Board of Directors with such terms as may be established in
the sole discretion of the Board of Directors.

    

    (c)           Regular Benefits. The
Executive shall also be entitled to participate in any employee benefit plans,
medical insurance plans, life insurance plans, disability income plans,
retirement plans, vacation plans, expense reimbursement plans and other benefit
plans or credit card privileges which the Bank may from time to time have in
effect for its senior executives. Such participation shall be subject to the
terms of the applicable plan documents, generally applicable policies of the
Bank, applicable law and the discretion of the Board of Directors or any
administrative or other committee provided for in or contemplated by any such
plan. Nothing contained in this Agreement shall be construed to create any
obligation on the part of the Bank to establish any such plan or to maintain the
effectiveness of any such plan which may be in effect from time to
time.

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    

    (d)           Taxation of Payments and
Benefits. The Bank shall undertake to make deductions, withholdings and
tax reports with respect to payments and benefits under this Agreement to the
extent that it reasonably and in good faith believes that it is required to make
such deductions, withholdings and tax reports. Payments under this Agreement
shall be in amounts net of any such deductions or withholdings. Nothing in this
Agreement shall be construed to require the Bank to make any payments to
compensate the Executive for any adverse tax effect associated with any payments
or benefits or for any deduction or withholding from any payment or
benefit.

    

    (e)           Exclusivity of Salary and
Benefits. The Executive shall not be entitled to any payments or benefits
other than those provided under this Agreement.

    

    (f)           SERP.  The
Executive shall be entitled to receive benefits under a supplemental executive
retirement plan, which the Bank and Executive shall execute concurrent with
signing this Agreement on the terms set forth as Exhibit ___ to the Merger
Agreement.

    

    (g)           Joint Beneficiary
Designation Agreement.  The Executive shall be entitled to the
benefits provided under the terms of the Joint Beneficiary Designation
Agreement, effective as of September 1, 2004, between the Executive and MWCB,
which the Bank has agreed to assume and honor pursuant to the terms of the
Merger Agreement.

    

    (h)           Automobile.  For
a period of twelve (12) months following the Effective Date, the Executive shall
be provided with the use of an automobile at the Bank’s expense.  The
Executive agrees to comply with such reasonable reporting and expense
limitations on the use of the automobile as may be established from time to time
by the Bank.  The Bank shall include annually on the Executive’s Form
W-2 any amount attributable to his personal use of such
automobile.  The Bank acknowledges and understands that the automobile
currently used by the Executive is leased by MWCB, that such lease does not
expire until September 2011, and that Executive shall be under no obligation to
purchase such automobile or assume such lease from the Bank after his right to
use such automobile hereunder terminates.

    

    (i)           Club
Dues.  In addition to other compensation payable to Executive
hereunder, for a period of twelve (12) months following the Effective Date, the
Bank shall pay to Executive an amount which shall be sufficient to compensate
Executive for the cost of the dues payable as a member of Wollaston Golf
Club.

    

    5.           
Extent of
Service. During the Executive’s employment under this Agreement, the
Executive shall, subject to the direction and supervision of the Board of
Directors, devote the Executive’s full business time, best efforts and business
judgment, skill and knowledge to the advancement of the Bank’s interests and to
the discharge of the Executive’s duties and responsibilities under this
Agreement. The Executive shall not engage in any other business activity, except
as may be approved by the Board of Directors; provided that nothing in this
Agreement shall be construed as preventing the Executive from:

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

    

    (a)             investing
the Executive’s assets in any company or other entity in a manner not prohibited
by Section 9(d) and in such form or manner as shall not require any material
activities on the Executive’s part in connection with the operations or affairs
of the companies or other entities in which such investments are
made;

    

    (b)            engaging
in religious, charitable or other community or non-profit activities that do not
impair the Executive’s ability to fulfill the Executive’s duties and
responsibilities under this Agreement; or

    

    (c)            conducting
bookkeeping and other  services for family-related
businesses.

    

    6.           Termination. The
Executive’s employment under this Agreement shall terminate under the following
circumstances set forth in this Section 6.

    

    (a)           Termination by the Bank for
Cause. The Executive’s employment under this Agreement may be terminated
for Cause without further liability on the part of the Bank effective
immediately upon a vote of the Board of Directors and written notice to the
Executive. Only the following shall constitute “Cause” for such
termination:

    

    (i)           the
conviction of the Executive for any felony involving deceit, dishonesty or
fraud;

    

    (ii)           a
material act or acts of dishonesty in connection with the performance of the
Executive’s duties, including without limitation, material misappropriation of
funds or property;

    

    (iii)           an
act or acts of gross misconduct  by the Executive; or

    

    (iv)           continued,
willful and deliberate non-performance by the Executive of duties (other than by
reason of illness or disability) which has continued for more than 30 days
following written notice of non-performance from the Board of Directors (or
Executive Committee) which specifically describes the alleged
non-performance.

    

    A
determination of whether the Executive’s employment shall be terminated for
Cause shall be made at a meeting of the Board of Directors called and held for
such purpose, at which the Board of Directors makes a finding that in the good
faith opinion of the Board of Directors an event set forth in subclauses (i),
(ii), (iii) or (iv) has occurred and specifying the particulars thereof in
detail.

    

    (b)           Termination by the
Executive. The Executive’s employment under this Agreement may be
terminated by the Executive by written notice to the Board of Directors within
sixty (60) days following an event constituting “Good Reason.”  The
Executive’s termination of employment shall become effective on the thirty-first
(31st) day
following such notice, provided the Bank has not remedied the condition giving
rise to the event of “Good Reason.”  For purposes of this Agreement,
“Good Reason” shall mean:

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

    

    (i)           a
material diminution or other substantial adverse change, not consented to by
Executive, in the nature or scope of the Executive’s responsibilities and
authorities as set forth in this Agreement, including a change in the
Executive’s line of reporting so that he no longer reports directly to the
Bank’s Chief Executive Officer;

    

    (ii)           the
assignment to Executive of any duties materially inconsistent with Executive’s
position, including any material change in status or duties, excluding for this
purpose an isolated, insubstantial and inadvertent action not taken in bad faith
and that is remedied by the Bank reasonably promptly after receipt of notice
thereof given by the Executive;

    

    (iii)           a
material reduction in the Executive’s base salary except for across-the-board
reductions similarly affecting all or substantially all officers;

    

    (iv)           involuntary
relocation of the Bank’s offices in which the Executive is principally employed
by more than 20 miles (10 miles in the event of a Change in Control);
or

    

    (v)           failure
of the Bank to comply with material terms of this Agreement.

    

    (c)           Termination by the Bank
Without Cause.  The Executive’s employment under this Agreement
may be terminated by the Bank without Cause (which, for purposes of
clarification, shall not include a termination of Executive’s employment under
this Agreement due to Executive’s death or Disability) upon written notice to
the Executive. A determination of whether the Executive’s employment shall be
terminated without Cause will be made solely by the Executive Committee of the
Board of Directors.

    

    (d)           Disability.  If
the Executive shall be disabled so as to be unable to perform the essential
functions of the Executive’s then existing position or positions under this
Agreement with or without reasonable accommodation, for a total of more than 90
days in any calendar year, the Board of Directors may terminate the Executive’s
employment upon written notice to the Executive. If any question shall arise as
to whether during any period the Executive is disabled so as to be unable to
perform the essential functions of the Executive’s then existing position or
positions with or without reasonable accommodation, the Executive may, and at
the request of the Bank shall, submit to the Bank a certification in reasonable
detail by a physician selected by the Bank to whom the Executive or the
Executive’s guardian has no reasonable objection as to whether the Executive is
so disabled,  and such certification shall for the purposes of this
Agreement be conclusive of the issue. The physician shall be board-certified in
the area of medicine applicable to the particular disability involved. The
Executive shall cooperate with any reasonable request of the physician in
connection with such certification. If such question shall arise and the
Executive shall fail to submit such certification (unless the failure results
from matters beyond the control of the Executive), the Bank’s determination will
determine the issue of whether the Executive is disabled. Nothing in this
Section 6(d) shall be construed to waive the Executive’s rights, if any, under
existing law including, without limitation; the Family and

    

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

    

    Medical
Leave Act of 1993, 29 U.S.C. §2601 et seq., the Americans with
Disabilities Act, 42 U.S.C. §12101 et seq, Massachusetts
General Laws Chapter 151B, and Section 10 below.

    

    (e)           Death.  The
Executive’s employment hereunder shall terminate upon his death.

     

    (f)           Termination and Board
Membership.  To the extent Executive is a member of the board
of directors or trustees of the Bank or any of its affiliates on the date of
termination of employment with the Bank (other than a termination due to normal
retirement), Executive will resign from all of the boards of directors and
trustees immediately following such termination of employment with the
Bank.  Executive will be obligated to tender this resignation
regardless of the method or manner of termination (other than termination due to
normal retirement), and such resignation will not be conditioned upon any event
or payment.

    

    7.           Certain Compensation Upon
Termination.

    

    (a)           Compensation Upon Voluntary
Termination.  If the Executive shall resign (including by
retirement) and voluntarily terminate employment without Good Reason, the Bank
shall pay to the Executive the Executive’s accrued and unpaid salary, accrued
and unpaid vacation pay and all rights and benefits that the Executive is
entitled to receive under the terms of the Bank’s benefit plans or arrangements,
including the Executive’s rights under any Supplemental Executive Retirement
Plan and Joint Beneficiary Designation Agreement (upon death) in effect between
the Bank and the Executive (the “Accrued Obligations”).

    

    (b)           Compensation Upon
Death.  In the event the Executive’s employment shall terminate
in the event of his death, his surviving spouse (or estate if there is no
surviving spouse) shall be entitled to receive the Accrued Obligations,
including a pro-rata bonus through the date of his death. His surviving spouse
(or estate if there is no surviving spouse) shall also be entitled to any death
benefit provided under the Bank’s life insurance plans.

    

    (c)           Compensation Upon
Disability.  In the event the Executive’s employment shall
terminate by reason of disability as provided in Section 6(d) above, he shall be
entitled to his Accrued Obligations, including a pro-rata bonus through the date
of his disability, and such disability benefits as determined in accordance with
any short or long-term disability plans then in effect for executives of the
Bank.

    

    (d)           Compensation Upon
Termination by the Bank for Cause.  In the event the
Executive’s employment shall be terminated by the Bank for Cause as provided by
Section 6(a) above, he shall be entitled to receive his Accrued Obligations
only.

    

    (e)           Compensation Upon
Termination of the Bank Without Cause or by the Executive for Good Reason
More Than One Year Following the Effective Date.  In the event
the Executive’s employment shall be terminated by the Bank without Cause as
provided in Section 6(c) above, or by the Executive for Good Reason as provided
in Section 6(b) above after the first anniversary of the Effective Date, he
shall be entitled to receive the Accrued Obligations.  In addition,
subject to the Executive’s agreement to a release of any and all legal claims in
a form

    

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

    

    satisfactory
to the Bank and the expiration of the applicable revocation period and subject
to compliance with the provisions of Section 9 hereof, the Bank shall pay the
Executive an amount equivalent to the sum of (i) two (2) times the (a)
Executive’s Salary at the rate then in effect pursuant to Section
4(a),  and (b) the average of the cash bonuses earned in each of the
three (3) calendar years preceding the year of termination; and (ii) the value
of 24 months of health insurance premiums for health insurance coverage provided
by the Bank, based on the coverage provided to the Executive immediately prior
to his termination.  The Bank shall make this in a single lump sum
cash payment within ten (10) days following the termination of
employment.  No cash payment shall be made under this Section 7(e) if
a payment is required to be made (and is made) under Section 8(b) of this
Agreement because of the Executive’s termination of employment.

    

    (f)           Compensation Upon
Termination of the Bank Without Cause or by the Executive for Good Reason
Within One Year Following the Effective Date.  In the event the
Executive’s employment shall be terminated by the Bank without Cause as provided
in Section 6(c) above, or by the Executive for Good Reason as provided in
Section 6(b) above on or before the first anniversary of the Effective Date, he
shall be entitled to receive the Accrued Obligations. In addition, subject to
the Executive’s agreement to a release of any and all legal claims in a form
satisfactory to the Bank and the expiration of the applicable revocation period
and subject to compliance with the provisions of Section 9 hereof, the Bank
shall pay the Executive an amount equivalent to the sum of 2.99 times his “base
amount” (as defined for purposes of Section 280G of the Code) less any other
“parachute payments” (as also defined for purposes of Section 280G of the Code)
made to the Executive.  No cash payment shall be made under this
Section 7(f) if a payment is required to be made (and is made) under Section
8(b) of this Agreement because of the Executive’s termination of
employment.  The Bank shall make this in a single lump sum cash
payment within ten (10) days following the termination of
employment.

    

    (g)           If
the Executive is a “specified employee” (as defined below) of a publicly traded
company, the payments pursuant to this Agreement, including Sections 7(e) and
7(f), may be delayed and paid to the Executive on the first day of the seventh
month following termination of employment if required to avoid penalty under
Section 409A of the Internal Revenue Code (“Code”).  For purposes of
this Agreement, the Executive shall not have a “termination of employment” until
he has a “separation from service” within the meaning of Code Section 409A and
the regulations promulgated thereunder.  Also for purposes of this
Agreement, Executive is a specified employee if Executive is a “key employee”
within the meaning of Code Section 416(i) (without regard to paragraph (i)
thereof).

    

    8.           Termination in Connection
with a Change in Control.

    

    (a)           For
purposes of this Agreement, a “Change in Control” means a change in control of
the Bank or Meridian Interstate Bancorp, Inc. (the “Company”) as defined in
Section 409A of the Internal Revenue Code of 1986 (the “Code”), as amended, and
rules, regulations, and guidance of general application thereunder, including
the following:

    

    
      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

    

    i.           Change in ownership:
A change in ownership of the Bank or the Company occurs on the date any one
person or group of persons accumulates ownership of more than 50% of the total
fair market value or total voting power of the Bank or the Company,
or

    

    ii.           Change in effective
control: A change in effective control occurs when either (i) any one
person or more than one person acting as a group acquires within a 12-month
period ownership of stock of the Company possessing 30% or more of the total
voting power of the Company; or (ii) a majority of the Bank’s or Company’s Board
of Directors is replaced during any 12-month period by Directors whose
appointment or election is not endorsed in advance by a majority of the Bank’s
or Company’s Board of Directors (as applicable), or

    

    iii.           Change in ownership of a
substantial portion of assets: A change in the ownership of a substantial
portion of the Company's assets occurs if, in a 12 month period, any one person
or more than one person acting as a group acquires assets from the Company
having a total gross fair market value equal to or exceeding 40% of the total
gross fair market value of the Company’s entire assets immediately before the
acquisition or acquisitions. For this purpose, “gross fair market value” means
the value of the Company’s assets, or the value of the assets being disposed of,
determined without regard to any liabilities associated with the
assets.

    

    Notwithstanding
anything in this Agreement to the contrary, in no event shall the Merger, or the
reorganization of Meridian Financial Services, Incorporated, the Company or Bank
solely within its corporate structure constitute a “Change in Control” for
purposes of this Agreement, provided that there is no reduction in the
Executive’s compensation and benefits.

    

    (b)           Termination.  If
within the period ending one year after a Change in Control, (i) the Bank
terminates the Executive’s employment without Cause, or (ii) the Executive
voluntarily terminates his employment with Good Reason, the Bank will, within
ten (10) calendar days of the termination of the Executive’s employment, make a
lump-sum cash payment to him equal to 2.99 times his “base amount” (as defined
for purposes of Section 280G of the Code) less any other “parachute payments”
(as also defined for purposes of Section 280G of the Code) made to the
Executive.  The cash payment made under this Section 8(b) shall be
made in lieu of any payment also required under Section 7 of this Agreement
because of the Executive’s termination of employment.  For purposes of
this Section 8(b), the Executive shall not have a “termination of employment”
until he has a “separation from service” within the meaning of Section 409A of
the Internal Revenue Code (“Code”) and the regulations promulgated
thereunder.

    

    (c)           The
provisions of Section 9, including the defined terms used in such sections,
shall continue in effect until the later of the expiration of this Agreement or
one year following a Change in Control, except the non-compete provisions in
Section 9(d) shall not be applicable in the event of a Change in
Control.

    

    
      
        
           

        

        
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    (d)           Limitation of Benefits Under
Certain Circumstances.  If the payments and
benefits pursuant to this Section 8 of this Agreement, either alone or together
with other payments and benefits the Executive has the right to receive from the
Bank, would constitute a “parachute payment” under Section 280G of the Code, the
payments and benefits shall be reduced or revised, by the amount, if any, which
is the minimum necessary to result in no portion of the payments and benefits
under this Agreement or otherwise being non-deductible to the Bank pursuant to
Section 280G of the Code and subject to the excise tax imposed under Section
4999 of the Code.  The reduction will be made in the manner determined
by the Executive, unless it is determined that permitting the Executive to make
the determination would violate Code Section 409A.  In such case, the
reduction will be made first from the cash severance payment payable under this
Section 8.  The
Bank’s independent public accountants will determine any reduction in the
payments and benefits to be made pursuant to this Agreement or otherwise; the
Bank will pay for the accountant’s opinion.  If the Bank and/or the
Executive do not agree with the accountant’s opinion, the Bank will pay to the
Executive the maximum amount of payments and benefits pursuant to this Section
8, as selected by the Executive, that the opinion indicates have a high
probability of not causing any of the payments and benefits to be non-deductible
to the Bank and subject to the excise tax imposed under Section 4999 of the
Code.  The Bank may also request, and the Executive has the right to
demand that the Bank request, a ruling from the Internal Revenue Service (“IRS”)
as to whether the disputed payments and benefits pursuant to this Section 8 have
such tax consequences.   The Bank will promptly prepare and file
the request for a ruling from the IRS, but in no event will the Bank make this
filing later than thirty (30) days from the date of the accountant’s opinion
referred to above.  The request will be subject to the Executive’s
approval prior to filing; the Executive shall not unreasonably withhold his
approval.  The Bank and the Executive agree to be bound by any ruling
received from the IRS and to make appropriate payments to each other to reflect
any IRS rulings, together with interest at the applicable federal rate provided
for in Section 7872(f)(2) of the Code. Nothing contained in this Agreement shall
result in a reduction of any payments or benefits to which the Executive may be
entitled upon termination of employment other than pursuant to this Section 8,
or a reduction in the payments and benefits specified in this Section 8, below
zero.

    

    9.           Confidential Information,
Noncompetition and Cooperation.

    

    (a)           Confidential
Information.  As used in this Agreement, “Confidential
Information” means information belonging to the Bank which is of value to the
Bank in the course of conducting its business and the disclosure of which could
result in a competitive or other disadvantage to the Bank. Confidential
Information includes, without limitation, financial information, reports, and
forecasts; inventions, improvements and other intellectual property; trade
secrets; know-how; designs, processes or formulae; software; market or sales
information or plans; customer lists; and business plans, prospects and
opportunities (such as possible acquisitions or dispositions of businesses or
facilities) which have been discussed or considered by the management of the
Bank. Confidential Information includes information developed by the Executive
in the course of the Executive’s employment by the Bank, as well as other
information to which the Executive may have access in connection with the
Executive’s employment. Confidential Information also includes the confidential
information of others with which the Bank has a business relationship.
Notwithstanding the foregoing, Confidential Information does

    

    
      
        
           

        

        
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    not
include information in the public domain, unless due to breach of the
Executive’s duties under Section 9(b).

    

    (b)           Confidentiality.  The
Executive understands and agrees that the Executive’s employment creates a
relationship of confidence and trust between the Executive and the Bank with
respect to all Confidential Information. At all times, both during the
Executive’s employment with the Bank and after its termination, the Executive
will keep in confidence and trust all such Confidential Information, and will
not use or disclose any such Confidential Information without the written
consent of the Bank, except as may be necessary in the ordinary course of
performing the Executive’s duties to the Bank.

    

    (c)           Documents, Records,
etc.  All documents, records, data, apparatus, equipment and
other physical property, whether or not pertaining to Confidential Information,
which are furnished to the Executive by the Bank or are produced by the
Executive in connection with the Executive’s employment will be and remain the
sole property of the Bank. The Executive will return to the Bank all such
materials and property as and when requested by the Bank. In any event, the
Executive will return all such materials and property immediately upon
termination of the Executive’s employment for any reason. The Executive will not
retain with the Executive any such material or property or any copies thereof
after such termination.

    

    (d)            Noncompetition and
Nonsolicitation.  During the period in which the Executive is
employed by the Bank and for two (2) years thereafter, the Executive (i) will
not, directly or indirectly, whether as owner, partner, shareholder, consultant,
agent, employee, co-venturer or otherwise, engage, participate, assist or invest
in any Competing Business (as hereinafter defined); (ii) will refrain from
directly or indirectly employing, attempting to employ, recruiting or otherwise
soliciting, inducing or influencing any person to leave employment with the Bank
(other than terminations of employment of subordinate employees undertaken in
the course of the Executive’s employment with the Bank); and (iii) will refrain
from soliciting or encouraging any customer or supplier to terminate or
otherwise modify adversely its business relationship with the Bank. The
Executive understands that the restrictions set forth in this Section 9(d) are
intended to protect the Bank’s interest in its Confidential Information and
established employee, customer and supplier relationships and goodwill, and
agrees that such restrictions are reasonable and appropriate for this purpose.
For purposes of this Agreement, the term “Competing Business” shall mean a
business conducted anywhere in the cities of Boston or Quincy, Massachusetts,
which is competitive with any business which the Bank or any of its affiliates
conducts or has taken affirmative action to begin conducting at any time during
the employment of the Executive. Notwithstanding the foregoing, the Executive
may own up to one percent (1%) of the outstanding stock of a publicly held
corporation which constitutes or is affiliated with a Competing
Business.

    

    (e)           Litigation and Regulatory
Cooperation.  During and after the Executive’s employment, the
Executive shall cooperate fully with the Bank in the defense or prosecution of
any claims or actions now in existence or which may be brought in the future
against or on behalf of the Bank which relate to events or occurrences that
transpired while the Executive was employed by the Bank. The Executive’s full
cooperation in connection with such claims or actions shall include, but not be
limited to, being available to meet with counsel to prepare for

    

    
      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

    

    discovery
or trial and to act as a witness on behalf of the Bank at mutually convenient
times. During and after the Executive’s employment, the Executive also shall
cooperate fully with the Bank in connection with any investigation or review of
any federal, state or local regulatory authority as any such investigation or
review relates to events or occurrences that transpired while the Executive was
employed by the Bank. The Bank shall reimburse the Executive for any reasonable
out-of-pocket expenses incurred in connection with the Executive’s performance
of obligations pursuant to this Section 9(e).

    

    (f)           Injunction.  The
Executive agrees that it would be difficult to measure any damages caused to the
Bank which might result from any breach by the Executive of the promises set
forth in this Section 9, and that in any event money damages would be an
inadequate remedy for any such breach. Accordingly, subject to Section 10 of
this Agreement, the Executive agrees that if the Executive breaches, or proposes
to breach, any portion of this Agreement, the Bank shall be entitled, in
addition to all other remedies that it may have, to an injunction or other
appropriate equitable relief to restrain any such breach without showing or
proving any actual damage to the Bank.

    

    10.           Arbitration of
Disputes. Any controversy or claim arising out of or relating to this
Agreement or the breach thereof or otherwise arising out of the Executive’s
employment or the termination of that employment (including, without limitation,
any claims of unlawful employment discrimination whether based on age or
otherwise) shall, to the fullest extent permitted by law, be settled by
arbitration in any forum and form agreed upon by the parties or, in the absence
of such an agreement, under the auspices of the American Arbitration Association
(“AAA”) in Boston, Massachusetts in accordance with the Employment Dispute
Resolution Rules of the AAA, including, but not limited to, the rules and
procedures applicable to the selection of arbitrators. In the event that any
person or entity other than the Executive or the Bank may be a party with regard
to any such controversy or claim, such controversy or claim shall be submitted
to arbitration subject to such other person or entity’s agreement. Judgment upon
the award rendered by the arbitrator may be entered in any court having
jurisdiction thereof. This Section 10 shall be specifically enforceable.
Notwithstanding the foregoing, this Section 10 shall not preclude either party
from pursuing a court action for the sole purpose of obtaining a temporary
restraining order or a preliminary injunction in circumstances in which such
relief is appropriate; provided that any other relief shall be pursued through
an arbitration proceeding pursuant to this Section 10.  The cost of
all arbitration proceedings (other than the Executive’s legal fees, which are
subject to section 15 of this Agreement) shall be paid by the Bank.

    

    11.           Consent to
Jurisdiction. To the extent that any
court action is permitted consistent with or to enforce Section 10 of this
Agreement, the parties hereby consent to the jurisdiction of the Superior Court
of the Commonwealth of Massachusetts and the United States District Court for
the District of Massachusetts. Accordingly, with respect to any such court
action, the Executive (a) submits to the personal jurisdiction of such courts;
(b) consents to service of process; and (c) waives any other requirement
(whether imposed by statute, rule of court, or otherwise) with respect to
personal jurisdiction or service of process.

    

    
      
        
           

        

        
          11

          
            

          

        

        
           

        

      

    

    

    

    12.           Integration. This
Agreement constitutes the entire agreement between the parties with respect to
the subject matter hereof and supersedes all prior agreements between the
parties with respect to any related subject matter.

    

    13.           Assignment; Successors and
Assigns, etc. Neither the Bank nor the Executive may make any assignment
of this Agreement or any interest herein, by operation of law or otherwise,
without the prior written consent of the other party; provided that the Bank may
assign its rights under this Agreement without the consent of the Executive in
the event that the Bank shall effect a reorganization, consolidate with or merge
into any other corporation, partnership, organization or other entity, or
transfer all or substantially all of its properties or assets to any other
corporation, partnership, organization or other entity. This Agreement shall
inure to the benefit of and be binding upon the Bank and the Executive, their
respective successors, executors, administrators, heirs and permitted
assigns.

    

    14.           Enforceability. If
any portion or provision of this Agreement (including, without limitation, any
portion or provision of any section of this Agreement) shall to any extent be
declared illegal or unenforceable by a court of competent jurisdiction, then the
remainder of this Agreement, or the application of such portion or provision in
circumstances other than those as to which it is so declared illegal or
unenforceable, shall not be affected thereby, and each portion and provision of
this Agreement shall be valid and enforceable to the fullest extent permitted by
law.

    

    15.           Payment of Legal
Fees.  All reasonable legal fees paid or incurred by the
Executive pursuant to any dispute or question of interpretation relating to this
Agreement shall be paid or reimbursed by the Bank, only if the Executive is
successful pursuant to a legal judgment, arbitration or
settlement.  Such payment or reimbursement shall be made no later than
two and one-half months after the successful conclusion in Executive’s favor of
the dispute by judgment, arbitration or settlement.

    

    16.           Waiver. No waiver of
any provision hereof shall be effective unless made in writing and signed by the
waiving party. The failure of any party to require the performance of any term
or obligation of this Agreement, or the waiver by any party of any breach of
this Agreement, shall not prevent any subsequent enforcement of such term or
obligation or be deemed a waiver of any subsequent breach.

    

    17.           Notices. Any notices,
requests, demands and other communications provided for by this Agreement shall
be sufficient if in writing and delivered in person or sent by a nationally
recognized overnight courier service or by registered or certified mail, postage
prepaid, return receipt requested, to the Executive at the last address the
Executive has filed in writing with the Bank or, in the case of the Bank, at its
main offices, attention of the Board of Directors, and shall be effective on the
date of delivery in person or by courier or three (3) days after the date
mailed.

    

    18.           Amendment. This
Agreement may be amended or modified only by a written instrument signed by the
Executive and by a duly authorized representative of the Bank.

    

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

    

    

    19.           Governing Law. This
is a Massachusetts contract and shall be construed under and be governed in all
respects by the laws of the Commonwealth of Massachusetts, without giving effect
to the conflict of laws principles of such Commonwealth. With respect to any
disputes concerning federal law, such disputes shall be determined in accordance
with the law as it would be interpreted and applied by the United States Court
of Appeals for the First Circuit.

    

    20.           Federal Deposit Insurance
Act Compliance. All payments made by the Bank to the Executive under any
provision of this Agreement shall be subject to and conditioned upon compliance
with Section 18(k) of the Federal Deposit Insurance Act, 12 U.S.C. § 1828(k) and
any regulations promulgated hereunder.

    

    21.           Counterparts. This
Agreement may be executed in any number of counterparts, each of which when so
executed and delivered shall be taken to be an original; but such counterparts
shall together constitute one and the same document.

    

    22.           Entire Agreement.
This Agreement contains the entire agreement of the parties relating to the
subject matter hereof, and supersedes in its entirety any and all understandings
or representations relating to the subject matter hereof, including the MWCB
Employment Agreement.  This Agreement may not be modified or amended
except by an instrument in writing signed by each of the parties
hereto.

     

    23.            Effectiveness.
 Notwithstanding anything to the contrary contained herein, this Agreement
shall be subject to consummation of the Merger in accordance with the terms of
the Merger Agreement, as the same may be amended by the parties thereto in
accordance with its terms.  In the event the Merger Agreement is terminated
for any reason, this Agreement shall be deemed null and void and the MWCB
Employment Agreement shall remain in effect in accordance with its
terms.

    

    
      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    

    

    IN
WITNESS WHEREOF, this Agreement has been executed as a sealed instrument by the
Bank, by its duly authorized officer, and by the Executive, as of the Effective
Date.

    

    

    

    
      	 
      	
              EAST
      BOSTON SAVINGS BANK

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/
      Richard J. Gavegnano

            
	 
      	
              Name:

            	
              Richard
      J. Gavegnano

            
	 
      	
              Title:

            	
              Chairman
      of the Board and CEO

            
	 
      	 
      	 
      
	 
      	
              EXECUTIVE

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              /s/
      Edward J. Merritt

            
	 
      	
              Edward
      J. Merritt

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