Document:

Third Amendment to the Second Amended and Restated Supplemental Executive Retirement
      Plan

    EXHIBIT
      10.18

    

    THIRD
      AMENDMENT TO THE

    SECOND
      AMENDED AND RESTATED 

    SUPPLEMENTAL
      EXECUTIVE RETIREMENT PLAN

    

    WHEREAS,
      the Yardville National Bank (the “Bank”) maintains the Second Amended and
      Restated Supplemental Executive Retirement Plan (the “SERP”) for the benefit of
      certain senior officers;

     

    WHEREAS,
      the Board of Directors of the Bank has the authority to amend the SERP pursuant
      to Article 9 therein;

     

    WHEREAS,
      the Board of Directors has determined that it is appropriate to make certain
      changes to the SERP’s provisions for determining Normal Retirement Benefits, as
      set forth in Section 3.1 of the SERP.

     

    NOW,
      THEREFORE, effective as of October 25, 2006 and retroactively applicable to
      any
      Participant who has already reached his or her Normal Retirement Date, the
      SERP
      is hereby amended to provide for the following:

     

    1.
       Section
      3.1 of the SERP is revised in its entirety to read as follows:

     

    “Normal
      Retirement Benefit.
      Except
      as provided in Section 6.2, upon retirement from the Company at his or her
      Normal Retirement Date, a Participant shall be entitled to receive an annual
      retirement benefit equal to his or her Target Benefit. Except as provided in
      Section 6.2, upon retirement from the Company after his or her Normal Retirement
      Date, a Participant shall be entitled to receive an annual retirement benefit
      equal to his or her Target Benefit determined as of his or her Normal Retirement
      Date and adjusted for interest from the Participant’s Normal Retirement Date to
      the date the Participant’s employment terminates at a rate of five percent (5%),
      compounded annually.”

     

    2. Section
      3.2(b) of the SERP is revised in its entirety to read as follows:

     

    “Time
      of Payment.
      Installment payments shall be made in equal amounts on a monthly basis
      commencing on the Normal Retirement Date or the actual date of retirement if
      the
      Participant defers his retirement beyond the Normal Retirement Date. A lump
      sum
      payment, if elected, shall be paid within 90 days following the Participant’s
      termination of employment. The Company may withhold from any payment any income
      tax or other amounts as required by law.”

     

    
      	 	
              3.

            	
              The
                SERP, as amended by the foregoing changes, is hereby amended and
                confirmed
                in all respects.Amended and Restated Yardville National Bank Employee Stock Ownership Plan

    EXHIBIT
      10.22

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    Yardville
      National Bank

     

    Employee
      Stock Ownership Plan

     

    Effective
      January 1, 2007

    
      
        
        

      

      
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    Yardville
      National Bank

    Employee
      Stock Ownership Plan

     

    Table
      of
      Contents

     

    
      	 	
              Page

               

            
	
              ARTICLE
                I

            	
              2

            
	
              DEFINITIONS

            	
              2

            
	
              “Account”

            	
              2

            
	
              “ESOP
                Stock Account”

            	
              2

            
	
              “ESOP
                Cash Account”

            	
              2

            
	
              “Account
                Balance”

            	
              2

            
	
              “Acquisition
                Loan”

            	
              2

            
	
              “Administrator”

            	
              3

            
	
              “Affiliated
                Company”

            	
              3

            
	
              “Alternate
                Payee”

            	
              3

            
	
              “Benefits
                Committee”

            	
              3

            
	
              “Board
                of Directors”

            	
              3

            
	
              “Break
                in Service”

            	
              4

            
	
              “Code”

            	
              4

            
	
              “Company”

            	
              4

            
	
              “Compensation”

            	
              5

            
	
              “Covered
                Employee”

            	
              5

            
	
              “Credited
                Service”

            	
              5

            
	
              “Direct
                Rollover”

            	
              6

            
	
              “Distributee”

            	
              6

            
	
              “Effective
                Date”

            	
              6

            
	
              “Election
                Period”

            	
              6

            
	
              “Eligible
                Employee”

            	
              6

            
	
              “Eligible
                Retirement Plan”

            	
              7

            
	
              “Eligible
                Rollover Distribution”

            	
              7

            
	
              “Employee”

            	
              7

            
	
              “Entry
                Date”

            	
              7

            
	
              “ERISA”

            	
              7

            
	
              “ESOP
                Stock”

            	
              8

            
	
              “Financed
                Shares”

            	
              8

            
	
              “Hour
                of Service”

            	
              8

            
	
              “Leased
                Employee”

            	
              9

            
	
              “Limitation
                Year”

            	
              9

            
	
              “Loan
                Suspense Account”

            	
              9

            
	
              “Normal
                Retirement Date”

            	
              9

            
	
              “Participant”

            	
              9

            
	
              “Participating
                Company”

            	
              9

            
	
              “Plan”

            	
              9

            

    

    
      
        
        

      

      
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              “Plan
                Year”

            	
              9

            
	
              “Qualified
                Domestic Relations Order”

            	
              9

            
	
              “Qualified
                Participant”

            	
              10

            
	
              “Required
                Beginning Date”

            	
              10

            
	
              “Spouse”

            	
              10

            
	
              “Total
                Disability”

            	
              10

            
	
              “Trust”

            	
              10

            
	
              “Trust
                Agreement”

            	
              10

            
	
              “Trust
                Investment Committee”

            	
              10

            
	
              “Trustee”

            	
              10

            
	
              “Valuation
                Date”

               

            	
              10

               

            

    

    

    
      	
              ARTICLE
                II

            	 
	
              PARTICIPATION

            	
              12

            
	
              2.1

            	
              Participation

            	
              12

            
	
              2.2

            	
              Participation
                Not Guarantee of Employment

            	
              13

            
	
              2.3

            	
              Beneficiary
                Designation

            	
              13

            
	
              2.4

            	
              Participation
                After Reemployment

            	
              13

            
	
              2.5

            	
              Data

            	
              14

            
	
              2.6

               

            	
              Credit
                for Military Service

               

            	
              14

               

            
	
              ARTICLE
                III

            	 
	
              PLAN
                CONTRIBUTIONS

            	
              15

            
	
              3.1

            	
              Participating
                Company Contributions

            	
              15

            
	
              3.2

            	
              Participant
                Contributions

            	
              15

            
	
              3.3

            	
              Trust

            	
              15

            
	
              3.4

               

            	
              Timing
                of Contributions

               

            	
              16

               

            
	
              ARTICLE
                IV

            	 
	
              ALLOCATION
                OF PARTICIPATING COMPANY

            	 
	
              CONTRIBUTIONS
                AND FORFEITURES

            	
              17

            
	
              4.1

            	
              Allocation

            	
              17

            
	
              4.2

               

            	
              Maximum
                Allocation

               

            	
              17

               

            
	
              ARTICLE
                V

            	 
	
              PARTICIPANTS’
                ACCOUNTS

            	
              19

            
	
              5.1

            	
              Separate
                Accounting

            	
              19

            
	
              5.2

            	
              Investment
                of Trust

            	
              19

            
	
              5.3

            	
              Valuation

            	
              20

            
	
              5.4

            	
              Adjustment
                of Accounts

            	
              20

            
	
              5.5

            	
              Accounting
                for Allocations.

            	
              22

            
	
              5.6

            	
              Restricted
                Assets

            	
              22

            
	
              5.7

            	
              Participant
                Statements

            	
              22

            
	
              5.8

            	
              Registration
                of Securities.

            	
              22

            
	
              5.9

            	
              Voting
                Of Employer Stock

            	
              23

            

    

    
      
        
        

      

      
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              5.10

            	
              Tender
                or Exchange Offer

            	
              24

            
	
              5.11

            	
              Acquisition
                Loans

            	
              24

            
	
              5.12

            	
              Restrictions
                on Allocations

            	
              26

            
	
              5.13

               

            	
              Dividends
                on ESOP Stock

               

            	
              27

               

            
	
              ARTICLE
                VI

            	 
	
              VESTING
                AND DISTRIBUTION OF ACCOUNT BALANCES

            	
              29

            
	
              6.1

            	
              Retirement
                or Total Disability

            	
              29

            
	
              6.2

            	
              Death

            	
              29

            
	
              6.3

            	
              Termination
                of Employment other than as a Result of Death, Retirement or Total
                Disability.

            	
               

              29

            
	
              6.4

            	
              Forfeitures
                and Restoration of Forfeited Amounts upon Reemployment

            	
              30

            
	
              6.5

            	
              Mode
                of Distribution

            	
              31

            
	
              6.6

            	
              Pre-Retirement
                Diversification Rights

            	
              33

            
	
              6.7

            	
              Timing
                of Benefit Distributions

            	
              34

            
	
              6.8

            	
              Valuation
                for Distribution

            	
              37

            
	
              6.9

               

            	
              Direct
                Rollover

               

            	
              38

               

            
	
              6.10

               

            	
              Minimum
                Distribution Requirements On or After January 1, 2003

               

            	
              38

               

            
	
              ARTICLE
                VII

            	 
	
              DEATH
                BENEFITS

            	
              45

            
	
              7.1

            	
              Beneficiary

            	
              45

            
	
              7.2

               

            	
              Form
                of Payment

               

            	
              45

               

            
	
              ARTICLE
                VIII

            	 
	
              MANAGEMENT
                OF FUNDS

            	
              46

            
	
              8.1

            	
              Designation
                of Trustee

            	
              46

            
	
              8.2

            	
              Exclusive
                Benefit

            	
              46

            
	
              8.3

            	
              No
                Interest in Trust

            	
              46

            
	
              8.4

               

            	
              Trust
                Investment Committee

               

            	
              46

               

            
	
              ARTICLE
                IX

            	 
	
              ADMINISTRATION

            	
              47

            
	
              9.1
                

            	
              Administrator

            	
              47

            
	
              9.2
                

            	
              Benefits
                Committee

            	
              47

            
	
              9.3
                

            	
              Ministerial
                Functions

            	
              47

            
	
              9.4
                

            	
              Duties
                and Powers of Benefits Committee

            	
              47

            
	
              9.5
                

            	
              Functioning
                of Benefits Committee

            	
              48

            
	
              9.6
                

            	
              Disputes

            	
              48

            
	
              9.7

            	
              Indemnification

            	
              49

            
	
              9.8
                

               

            	
              Expenses

               

            	
              50

               

            
	
              ARTICLE
                X

            	 
	
              AMENDMENT
                AND TERMINATION

            	
              51

            
	
              10.1

            	
              Power
                of Amendment and Termination

            	
              51

            

    

    
      
        
        

      

      
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              10.2

            	
              Merger

            	
              51

            
	
              10.3

               

            	
              Change
                in Control.
                

               

            	
              52

               

            
	
              ARTICLE
                XI

            	 
	
              TOP-HEAVY
                PROVISIONS

            	
              53

            
	
              11.1

            	
              General.

            	
              53

            
	
              11.2

            	
              Definitions

            	
              53

            
	
              11.3

            	
              Minimum
                Contribution for Non-Key Employees

            	
              56

            
	
              11.4

            	
              Change
                in Vesting Schedule

            	
              58

            
	
              11.5

            	
              Social
                Security

            	
              58

            
	
              11.6

               

            	
              Adjustment
                to Maximum Allocation Limitation

               

            	
              58

               

            
	
              11.7

               

            	
              Modification
                of Top-Heavy Rules

               

            	
              59

               

            
	
              ARTICLE
                XII

            	 
	
              RIGHTS
                OF ALTERNATE PAYEES

            	
              61

            
	
              12.1

            	
               General

            	
              61

            
	
              12.2

               

            	
               Death
                Benefits

               

            	
              61

               

            
	
              ARTICLE
                XIII

            	 
	
              GENERAL
                PROVISIONS

            	
              62

            
	
              13.1

            	
              Source
                of Benefits

            	
              62

            
	
              13.2

            	
              Alienation
                of Benefits

            	
              62

            
	
              13.3

            	
              Facility
                of Payment

            	
              62

            
	
              13.4

            	
              Interest
                and Dividends on Distributions

            	
              62

            
	
              13.5

               

            	
              Applicable
                Law

               

            	
              62

               

            
	
              Schedule
                A

            	 
	
              Participating
                Companies

               

            	
              A-1

               

            
	
              Schedule
                B

            	 
	
              Trust
                Investment Committee Charter

            	
              B-1

            

    

    

    

    
      
        
        

      

      
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    ARTICLE
      I

    DEFINITIONS

    Except
      where otherwise clearly indicated by context, the masculine pronoun shall
      include the feminine and the singular shall include the plural, and vice versa.
      Any term used in the Plan without an initial capital letter that is used in
      a
      provision of the Code with which this Plan must comply to meet the requirements
      of section 401(a) of the Code shall be interpreted as having the meaning used
      in
      such provision of the Code, if necessary for the Plan to comply with such
      provision.

    “Account”
      means
      the entries maintained in the records of the Trustees which represent the
      Participant’s interest in the Trust. The term “Account” shall refer, as the
      context requires, to any or all of the following:

    “ESOP
      Stock Account”—
the
      Account to which is credited ESOP Stock allocated to a Participant under the
      Plan attributable to Company contributions, as adjusted for distributions,
      earnings, losses and expenses attributable thereto, to the extent held in the
      form of ESOP Stock.

    “ESOP
      Cash Account”—
the
      Account to which are credited Company contributions allocated to a Participant
      under the Plan, as adjusted for distributions, earnings, losses and expenses
      attributable thereto, to the extent held in any form other than ESOP
      Stock.

    “Account Balance”
      means,
      for each Participant, the aggregate credit standing to his Account.

    “Acquisition
      Loan”
      means a
      loan or other extension of credit used by the Trustee to finance the acquisition
      of ESOP Stock, as set forth in Section 5.11.

    “Administrator”
      means
      the Company.

    
      
        
        

      

      
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    “Affiliated
      Company”
      means
      (a) any subsidiaries of the Company (or companies under common control with
      the Company) which are members of the same controlled group of corporations
      as
      the Company, as determined under section 414(b) of the Code; (b) any member
      of an affiliated service group, as determined under section 414(m) of the Code,
      of which the Company is a member; and (c) any trades or businesses under
      common control with the Company, as determined under section 414(c) of the
      Code.
“50%
      Affiliated Company”
      means an
      Affiliated Company described in (a) or (c) above, but applied as if the phrase
      “more than 50%” were substituted for the phrase “at least 80%” each time it
      appears in section 1563(a) of the Code.

    “Alternate
      Payee”
      means
      any Spouse, former Spouse, child or other dependent of a Participant who is
      recognized by a domestic relations order (within the meaning of section
      414(p)(1)(B) of the Code) as having a right to receive all, or a portion of,
      the
      benefits payable under the Plan with respect to such Participant.

    “Benefits
      Committee”
      means
      the person or persons appointed by the Board of Directors to supervise the
      administration of the Plan pursuant to Article IX.

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

    “Break
      in Service”
      means
      any Plan Year during which an Employee receives credit for not more than 500
      Hours of Service. Notwithstanding the foregoing, if an Employee is absent from
      work by reason of pregnancy, childbirth, or adoption, or for purposes of the
      care of such Employee’s child immediately after birth or adoption, such Employee
      shall be credited, solely for purposes of this Section, with the Hours of
      Service which otherwise would have been credited to such individual for such
      absence or, if such hours cannot be determined, at the rate of eight hours
      per
      normal workday, except that the total number of hours counted as Hours of

    
      
        
        

      

      
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    service
      for this purpose will not exceed 501. The hours described in this Section shall
      be treated as Hours of Service:

    (a) only
      in
      the Plan Year in which the absence from work begins, if an Employee would be
      prevented from incurring a Break in Service in such Plan Year solely because
      the
      period of absence is treated as Hours of Service under this Section;
      or

    (b) in
      any
      other case, in the immediately following Plan Year.

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

    “Company”
      means
      Yardville National Bank, and its successors.

    “Compensation”

    (a) In
      General.
      Except
      as otherwise provided in this definition, the term ‘Compensation’ means an
      Employee’s base pay for each calendar year ending with or within a Plan Year and
      which is includible in the Employee’s gross income for federal income tax
      purposes. The term ‘Compensation’ shall include amounts deferred or contributed
      under a salary reduction agreement with a Participating Company and excludible
      from gross income for federal income tax purposes pursuant to section 125 or
      402(g) of the Code, and all compensation reductions to which the Participant
      has
      consented for the purpose of providing “qualified transportation fringe
      benefits” under section 132(f)(4) of the Code. Amounts excludible from gross
      income for federal income tax purposes pursuant to section 125 of the Code
      include any amounts not available to an Employee in cash in lieu of group health
      coverage because the Employee is unable to certify that he or she has other
      health coverage. An amount will be treated as an amount deferred or contributed
      under Code section 125 only if the Participating Company does not request or
      collect information regarding the Employee’s other health coverage as part of
      the enrollment process for the health plan. Except as otherwise
      provided

    
      
        
        

      

      
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    above
      with respect to amounts excludible from gross income under section 402(g) of
      the
      Code, the term ‘Compensation’ shall not include contributions to this Plan or
      any other contributions by or on behalf of the Employee to any other plan of
      deferred compensation.

    (b) Statutory
      Limit on Compensation.
      For
      Plan years beginning on and after January 1, 2007, only the first $225,000
      of a
      Participant’s Compensation, as adjusted for cost-of-living increases in
      accordance with section 401(a)(17) of the Code, will be considered for any
      purpose of the Plan.

    “Covered
      Employee”
      means
      any Employee who is employed by a Participating Company other than:

    (a) 
      an
      Employee who is covered by a collective bargaining agreement, unless such
      agreement specifically provides for participation hereunder;

    (b) an
      individual who is an Employee solely by reason of being a Leased Employee;
      or

    (c) beginning
      January 31, 2007, an Employee who is employed by the Company with a title which
      includes executive vice president, or any other title considered to be senior
      to
      the title of executive vice president.

    “Credited
      Service”
      means
      that portion of an Employee’s employment with the Company and all Affiliated
      Companies which is used to calculate the Employee’s vesting status hereunder. An
      Employee shall earn one year of Credited Service for each Plan Year beginning
      on
      or after the Effective Date during which he is credited with 1000 Hours of
      Service.

    “Direct
      Rollover”
      means a
      payment by the Plan to an Eligible Retirement Plan specified by the
      Distributee.

    
      
        
        

      

      
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    “Distributee”
      means a
      Participant or a Participant’s surviving spouse or Alternate Payee.

    “Effective
      Date”
      means
      January 1, 2007.

    “Election
      Period”
      means,
      with respect to any Participant, the 90-day period immediately following the
      end
      of (1) the Plan Year in which such Participant becomes a Qualified Participant
      and (2) each of the five succeeding Plan Years.

    “Eligible
      Employee”
      means an
      Employee who has become an Eligible Employee as set forth in Article II, whether
      or not he is a Participant, and who has remained a Covered Employee at all
      times
      thereafter.

    “Eligible
      Retirement Plan”
      means:

    (a)
      an
      individual retirement account described in section 408(a) of the
      Code;

    (b)
      an
      individual retirement annuity described in section 408(b) of the
      Code;

    (c)
      a
      qualified trust described in section 401(a) of the Code; and

    (d)
      an
      annuity plan described in section 403(a) of the Code.

    Paragraphs
      (c) and (d) shall not apply if the distributee of an Eligible Rollover
      Distribution is the Participant’s surviving spouse.

    Notwithstanding
      the foregoing, for distributions made after December 31, 2001, 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

    
      
        
        

      

      
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    plan
      from
      this Plan. The definition of Eligible Retirement Plan, including paragraphs
      (c)
      and (d), 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.

    “Eligible
      Rollover Distribution”
      means
      any distribution of all or any portion of the balance to the credit of the
      Distributee, except that an Eligible Rollover Distribution does not include:
      any
      distribution that is one of a series of substantially equal periodic payments
      (not less frequently than annually) made for the life (or life expectancy)
      of
      the Distributee or the joint lives (or joint life expectancies) of the
      Distributee and the Distributee’s designated beneficiary, or for a specified
      period of ten years or more; any distribution to the extent such distribution
      is
      required under Code section 401(a)(9); and any hardship distribution described
      in Code section 401(k)(2)(B)(i)(IV).

    “Employee”
      means
      any individual employed by the Company or any Affiliated Company, including
      officers, shareholders or directors who are employees. An individual who is
      not
      otherwise employed by the Company or an Affiliated Company shall be deemed
      to be
      an Employee of the Company if he is a Leased Employee with respect to the
      Company or an Affiliated Company.

    “Entry
      Date”
      means
      January 1st or July 1st.

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

    “ESOP
      Stock”
      means
      the common stock of Yardville National Bancorp, par value $.01 per share, or
      such other security that meets the requirements of section 409(l) of the
      Code.

    
      
        
        

      

      
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    “Financed
      Shares”
      means
      shares of ESOP Stock acquired by the Trustee with the proceeds of an Acquisition
      Loan.

    “Hour
      of Service”
      means an
      hour for which:

    (a) an
      Employee is directly or indirectly paid or entitled to payment by the Company
      or
      an Affiliated Company for the performance of employment duties;

    (b) an
      Employee is entitled, either by award or agreement, to back pay from the Company
      or an Affiliated Company, irrespective of mitigation of damages;

    (c) an
      Employee is directly or indirectly paid or entitled to payment by the Company
      or
      an Affiliated Company on account of a period of time during which no duties
      are
      performed due to vacation, holiday, illness, incapacity (including disability),
      layoff, jury duty, military duty, or leave of absence.

    There
      shall be excluded from the foregoing those periods during which payments are
      made or due under a plan maintained solely for the purpose of complying with
      applicable workers’ compensation, unemployment compensation, or disability
      insurance laws. No more than 501 Hours of Service shall be credited under
      Subsection (c) on account of any single continuous period during which no
      duties are performed, except to the extent otherwise provided in this Plan.
      An
      Hour of Service shall not be credited where an Employee is being reimbursed
      solely for medical or medically-related expenses.

    Hours
      of
      Service shall be credited in accordance with the rules set forth in U.S.
      Department of Labor Reg. § 2530.200b-2(b) and (c).

    “Leased
      Employee”
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

    
      
        
        

      

      
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    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 by such
      persons under the primary direction and control of the recipient.

    “Limitation
      Year”
      means
      the Plan Year.

    “Loan
      Suspense Account”
      means an
      account established to hold Financed Shares pending repayment of the Acquisition
      Loan used to purchase such Financed Shares.

    “Normal
      Retirement Date”
      means a
      Participant’s 65th birthday.

    “Participant”
      means an
      individual for whom an Account is maintained under the Plan.

    “Participating
      Company”
      means
      the Company and each of the Affiliated Companies listed on Schedule A that,
      with
      the consent of the Board of Directors, adopts the Plan for the benefit of its
      Eligible Employees.

    “Plan”
      means
      the Yardville National Bank Employee Stock Ownership Plan as set forth in this
      plan document and the Trust Agreements, and, as it may be amended from time
      to
      time.

    “Plan
      Year”
      means
      the 12-consecutive-month period extending from January 1st and ending
      December 31st.

    “Qualified
      Domestic Relations Order”
      means a
      domestic relations order (within the meaning of section 414(p)(1)(B) of the
      Code) which creates or recognizes the existence of an Alternate Payee’s rights
      to, or assigns to an Alternate Payee the right to receive all or a portion
      of
      the benefits payable with respect to a Participant under the Plan, and is
      determined by the Benefits Committee to satisfy the requirements of section
      414(p) of the Code.

    
      
        
        

      

      
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    “Qualified
      Participant”
      means a
      Participant who has attained age 55 and who has completed 10 years of
      participation in the Plan.

    “Required
      Beginning Date”
      means
      the earlier of the dates determined under (a) or (b) where:

    (a) is
      the
      later of (1) the 60th day after the close of the Plan Year in which the
      Participant reaches Normal Retirement Date, or (2) the 60th day after the close
      of the Plan Year in which the Participant terminates employment with the Company
      and all Affiliated Companies; and

    (b) is
      April 1st of the calendar year following the later of (1) the calendar year
      in which the Participant reaches age 701⁄2, or (2) the calendar year in which
      the Participant terminates employment with the Company and all Affiliated
      Companies; provided, however, that clause (2) shall not apply with respect
      to a
      Participant who is a 5-percent owner (as defined in section 416(i)(1)(B)(i)
      of
      the Code) of the Company or any Affiliated Company.

    “Spouse”
      means
      the person to whom a Participant is married as of the date of
      reference.

    “Total
      Disability”
      means a
      physical or mental condition of such severity and probable prolonged duration
      as
      to entitle the Participant to disability retirement benefits under the Federal
      Social Security Act.

    “Trust”
      means
      the fund established for this Plan, administered under the Trust Agreement
      and
      out of which benefits payable under this Plan will be paid.

    “Trust
      Agreement”
      means
      any agreement and declaration of trust executed under this
      Plan.

    
      
        
        

      

      
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    “Trust
      Investment Committee”
      means
      the person or persons appointed by the Board of Directors to exercise the
      responsibilities assigned to such Committee under the Plan and Trust Agreement.
      The operation of the Trust Investment Committee shall be governed by the Charter
      attached as Schedule B and incorporated herein by reference.

    “Trustee”
      means
      the corporate trustee(s) and/or any group of one or more individuals
      collectively appointed by the Board of Directors, to act as trustee, pursuant
      to
      the terms of the Plan and Trust Agreement.

    “Valuation
      Date”
      means
      the last day of each Plan Year and each interim date on which the Trust
      Investment Committee determines that a valuation of the Trust shall be
      made.

    
      
        
        

      

      
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    ARTICLE
      II

    PARTICIPATION

     

    2.1 Participation.

    2.1.1 Each
      Covered Employee as of the Effective Date who has reached the first anniversary
      of his employment with a Participating Company as of the Effective Date shall
      become an Eligible Employee as of the Effective Date. Each other Covered
      Employee shall become an Eligible Employee on the Entry Date next following
      nearest the first anniversary of his commencement of employment with the
      Company, provided he is a Covered Employee as of such Entry Date.

    2.1.2 If
      an
      individual is not a Covered Employee as of the Entry Date or next following
      the
      first anniversary of his commencement of employment with the Company, he shall
      become an Eligible Employee as of the next following Entry Date on which he
      is a
      Covered Employee.

    2.1.3 Except
      as
      otherwise provided in this Section 2.1.3, an Eligible Employee shall share
      in
      contributions and forfeitures under Section 4.1 for a Plan Year only if he
      receives Compensation, is credited with 1,000 or more Hours of Service for
      such
      Plan Year and is a Covered Employee on the last day of such Plan Year. An
      Eligible Employee who is not a Covered Employee on the last day of a Plan Year
      solely on account of layoff, leave of absence approved in writing in advance
      by
      the Participating Company, military leave to the extent that his right to rehire
      is protected by law, or transfer approved by the Company to any Affiliated
      Company that is not a Participating Company shall share in contributions and
      forfeitures under Section 4.1 for such Plan Year only if he receives
      Compensation and is credited with 1,000 or more Hours of Service for such Plan
      Year. Notwithstanding the foregoing, an Eligible Employee who is not a Covered
      Employee on the last day of a Plan Year solely on account of death,
      Total

    
      
        
        

      

      
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    Disability
      or termination of employment on or after Normal Retirement Date during such
      Plan
      Year shall share in contributions and forfeitures under Section 4.1 without
      regard to whether he is credited with 1,000 or more Hours of Service for such
      Plan Year.

    2.2 Participation
      Not Guarantee of Employment.
      Participation in the Plan does not constitute a guarantee or contract of
      employment and will not give any Employee the right to be retained in the employ
      of the Company or an Affiliated Company.

    2.3 Beneficiary
      Designation.
      Upon
      becoming a Participant in the Plan, an Employee may designate, in the manner
      specified by the Benefits Committee and in accordance with Section 7.1, a
      beneficiary or beneficiaries to whom his Account Balance shall be paid in the
      event of his death. A Participant may change his beneficiary designation at
      any
      time by written notice to the Benefits Committee in a form approved by the
      Benefits Committee.

    2.4 Participation
      After Reemployment.

    2.4.1 An
      individual who is a Participant, who terminates employment with the Company
      and
      all Affiliated Companies and is subsequently reemployed by a Participating
      Company as a Covered Employee shall again become an Eligible Employee as of
      his
      reemployment date, provided that such individual is so reemployed before
      incurring his fifth consecutive Break in Service.

    2.4.2 An
      individual who is a Participant, who terminates employment with the Company
      and
      all Affiliated Companies employment at a time when he has a nonforfeitable
      interest in his Account Balance and who is subsequently reemployed by a
      Participating Company as a Covered Employee shall again become an Eligible
      Employee as of his reemployment date, whether or not such individual is so
      reemployed before incurring his fifth consecutive Break in
      Service.

    
      
        
        

      

      
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    2.4.3 An
      individual who is a Participant, who terminates employment with the Company
      and
      all Affiliated Companies at a time when he has no nonforfeitable interest in
      his
      Account Balance under the Plan and who subsequently becomes an Employee after
      incurring five consecutive Breaks in Service shall be treated as a new Employee
      for purposes of determining his eligibility to participate and of calculating
      Credited Service under the Plan.

    2.5 Data.
      Each
      Employee shall furnish to the Benefits Committee such data as the Benefits
      Committee may consider necessary for the determination of the Employee’s rights
      and benefits under the Plan and shall otherwise cooperate fully with the
      Benefits Committee in the administration of the Plan.

    2.6 Credit
      for Military Service.
      Notwithstanding any provision of the Plan to the contrary, contributions,
      benefits and service credit with respect to qualified military service will
      be
      provided in accordance with section 414(u) of the Code.

    
      
        
        

      

      
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    ARTICLE
      III

    PLAN
      CONTRIBUTIONS

     

    3.1 Participating
      Company Contributions.
      Subject
      to the conditions and limitations of the Plan, for each Plan Year the Company
      (or such other Participating Companies as the Board of Directors shall
      designate) shall contribute to the Trust cash equal to, or ESOP Stock having
      an
      aggregate fair market value equal to, such amount, if any, as the Board of
      Directors shall determine by resolution; provided, however, that the
      contribution for any Plan Year shall not exceed the lesser of the maximum amount
      deductible by the Company for Federal income tax purposes, or the maximum amount
      which may be credited that year in accordance with the contribution limitation
      provisions of Section 4.2. To the extent provided in an Acquisition Loan between
      the Company and the Trust pursuant to which the Company lends to the Trust
      amounts attributable to the proceeds of a loan between the Company and an
      unrelated third-party lender and intended for the acquisition of ESOP Stock
      by
      the Trust, the Company’s payment of principal and interest pursuant to such loan
      shall be treated as the contribution of cash to the Trust pursuant to this
      Section 3.1, and the repayment of such Acquisition Loan as described in
      Section 5.11.2.

    3.2 Participant
      Contributions.
      No
      Participant shall be required or permitted to make any contributions to the
      Plan.

    3.3 Trust.

    3.3.1 The
      contributions deposited in the Trust in accordance with this Article shall
      constitute a fund held for the benefit of Participants and their eligible
      beneficiaries under and in accordance with this Plan. No part of the principal
      or income of the Trust shall be used for, or diverted to, any purpose other
      than
      the exclusive benefit of such Participants and their eligible beneficiaries
      (including necessary administrative costs); provided that in the case
      of

    
      
        
        

      

      
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    a
      contribution made (1) as a mistake of fact, (2) for which a tax deduction is
      disallowed, in whole or in part, by the Internal Revenue Service, or (3) which
      is conditioned upon the initial qualification of the Plan under section 401(a)
      of the Code, if the Plan is the subject of an adverse determination with respect
      to its initial qualification, the Participating Company that made such
      contribution shall be entitled to its refund.

    3.3.2 Any
      refund of contributions described in Section 3.3.1 must be made within one
      year
      (1) after payment of a contribution made as a mistake of fact, (2) after
      disallowance of the tax deduction, to the extent of such disallowance, or
      (3) of the date on which the initial qualification of the Plan is denied by
      the Internal Revenue Service, but only if the application for determination
      is
      made by the time prescribed by law for filing the Company’s federal income tax
      return for the taxable year in which the Plan is adopted or such later date
      as
      may be permitted by applicable Treasury Regulation or other applicable
      administrative pronouncements, as the case may be.

    3.4 Timing
      of Contributions.
      Participating Company contributions for any Plan Year under this Article shall
      be made no later than the last date on which amounts so paid may be deducted
      for
      federal income tax purposes for the taxable year of the employer in which the
      Plan Year ends. All contributions hereunder are expressly conditioned upon
      their
      deductibility for federal income tax purposes.

    
      
        
        

      

      
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    ARTICLE
      IV

    ALLOCATION
      OF PARTICIPATING COMPANY

    CONTRIBUTIONS
      AND FORFEITURES

     

    4.1 Allocation.
      Each
      Participating Company contribution, plus any forfeitures arising during the
      Plan
      Year and any amount held in suspense in accordance with Section 4.2.2, shall
      be
      allocated as of the last day of the Plan Year for which the contribution is
      made
      to the Account of each Eligible Employee who is entitled to share in such
      contribution under Section 2.1.3 in the proportion that his Compensation for
      that portion of the Plan Year during which he was an Eligible Employee bears
      to
      such Compensation of all such Eligible Employees for the Plan Year.

    4.2Maximum
      Allocation.

    4.2.1 Notwithstanding
      anything in this Article to the contrary, in no event shall amounts allocated
      to
      a Participant’s Account under this Plan and any other defined contribution plan
      maintained by the Company or a 50% Affiliated Company exceed the limitations
      set
      forth in section 415 of the Code, which are hereby incorporated by reference
      into the Plan.

    4.2.2 If
      the
      amounts otherwise allocable to the Account of a Participant under this Plan
      and
      any other defined contribution plan maintained by the Company or a 50%
      Affiliated Company would exceed the limitation set forth in section 415(c)
      of
      the Code as a result of the reallocation of forfeitures, a reasonable error
      in
      estimating the Participant’s compensation or such other circumstances as
      permitted by law, the excess amount shall be held in a suspense account by
      the
      Trustee until the following Plan Year (or any succeeding Plan Years), at which
      time such amount shall be allocated in the manner described in Section 4.1
      before any contributions by the Company may be made for such Plan Year. Amounts
      held in the suspense account shall share in investment gains and losses of
      the
      Trust.

    
      
        
        

      

      
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    4.2.3 Notwithstanding
      anything in this Plan to the contrary, the maximum allocation provisions of
      this
      Section shall be construed in accordance with the requirements of section 415
      of
      the Code and the regulations promulgated thereunder.

    
      
        
        

      

      
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    ARTICLE
      V

    PARTICIPANTS’
      ACCOUNTS

     

    5.1 Separate
      Accounting.
      Separate Accounts shall be maintained for each Participant. These Accounts
      shall
      represent the Participant’s individual interest in the Trust.

    5.2 Investment
      of Trust.
      Except
      as otherwise provided in Sections 6.6 and 5.4.4, the assets of the Trust shall
      be primarily invested in ESOP Stock. The Trustee shall invest contributions
      that
      are not applied to the payment of principal and interest on any Acquisition
      Loan
      in ESOP Stock, except that subject to the direction of the Trust Investment
      Committee, the Trustee shall be authorized to invest a portion of such
      contributions received in other securities as a reserve for the payment of
      administrative expenses and cash distributions. The Trustee shall be
      specifically authorized to invest in interest-bearing deposit accounts or
      certificates of deposit of any affiliate of the Trustee. The Trustee shall
      also
      be authorized to invest contributions not applied to the payment of principal
      and interest on any Acquisition Loan and income received on Plan assets in
      other
      securities pending investment in ESOP Stock or pending distribution to
      Participants. The Trustee shall be authorized to invest cash amounts held in
      Participants’ ESOP Cash Account, representing dividends previously paid with
      respect to shares of ESOP Stock allocated to Participants’ ESOP Stock Account,
      in ESOP Stock, which such ESOP Stock shall thereafter be held in the ESOP Stock
      Account of each such Participant. In accordance with the directions of the
      Trust
      Investment Committee, shares of ESOP Stock may be purchased from any Company
      shareholder or from the Company or an Affiliated Company. All purchases of
      ESOP
      Stock by the Trustee shall be made only as directed by the Trust Investment
      Committee. The Trust Investment Committee may direct the Trustee to sell shares
      of ESOP Stock to any person (including the Company or an Affiliated Company).
      Except as otherwise provided in Section

    
      
        
        

      

      
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    6.6,
      the
      Trust Investment Committee may direct the Trustee to hold up to 100% of assets
      allocated to Participants’ Accounts in ESOP Stock.

    5.3 Valuation.
      The
      value of the Trust shall be computed by the Trustee as of the close of business
      of each Valuation Date on the basis of the fair market value of the assets
      of
      the Trust. All valuations of ESOP Stock shall be made in accordance with section
      401(a)(28)(C) of the Code, section 3(18) of ERISA, and applicable regulations
      issued under such sections.

    5.4 Adjustment
      of Accounts.
      As of
      each Valuation Date, the following adjustments shall be made to each
      Participant’s Account, in the order described below.

    5.4.1 The
      Account of each Participant shall be charged with all distributions and payments
      made to him, or on his behalf, since the last preceding Valuation Date that
      have
      not been charged previously, including payments by the Trustee in accordance
      with Section 5.13 of cash dividends paid with respect to shares of ESOP Stock
      allocated to the Participant’s ESOP Stock Accounts.

    5.4.2 Any
      appreciation, depreciation, gains or losses experienced by the Trust shall
      be
      allocated among and correspondingly credited to or charged against each
      Participant’s ESOP Stock Accounts and ESOP Cash Accounts, respectively, in
      proportion to the balance in each of such Accounts as of such Valuation Date,
      after the application of Section 5.4.1.

    5.4.3 Any
      cash
      dividends paid by the Company with respect to Shares of ESOP Stock allocated
      to
      a Participant’s ESOP Stock Account which are not applied to the repayment of any
      Acquisition Loan shall be credited to the ESOP Cash Account of such
      Participant.

    
      
        
        

      

      
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    5.4.4 If
      dividends paid on shares of ESOP Stock that have not been allocated to
      Participants’ ESOP Stock Accounts are applied to the repayment of any
      Acquisition Loan, then shares will be released from the Loan Suspense Account
      as
      described in Section 5.11.3 and allocated to each Eligible Employee’s ESOP Stock
      Account as a Company contribution in accordance with Section 4.1.

    5.4.5 If
      dividends paid on shares of ESOP Stock that have been allocated to Participants’
ESOP Stock Accounts (regardless of whether such shares were acquired with the
      proceeds of an Acquisition Loan) are applied to the repayment of any Acquisition
      Loan, the shares thereby released from the Loan Suspense Account shall be
      allocated directly to the ESOP Stock Account of each Participant for whose
      benefit the dividends would otherwise have been allocated. If the fair market
      value of the shares so allocated to each Participant’s Account is less than the
      amount of the dividend that would otherwise have been allocated to such Account,
      then contributions and/or forfeitures will be allocated to such Participant’s
      Account until the total allocation made pursuant to this Section 5.4.5 is equal
      to the amount of the dividend that would otherwise have been allocated to such
      Account. Any allocation of ESOP Stock made under this Section 5.4.5 shall be
      made for the Plan Year in which the dividend would otherwise have been
      allocated.

    5.4.6 Contributions
      and forfeitures shall be allocated to each Eligible Employee’s Account in
      accordance with Section 4.1; provided, however, that to the extent that such
      contributions or forfeitures are applied to the repayment of any Acquisition
      Loan, then shares will be released from the Loan Suspense Account as described
      in Section 5.11.3 and allocated to each Eligible Employee’s ESOP Stock Account
      as a Company contribution in accordance with Section 4.1.

    
      
        
        

      

      
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    5.4.7 Each
      Participant’s ESOP Stock Account shall be credited with the shares of ESOP
      Stock, if any, that have been purchased with amounts from his corresponding
      ESOP
      Cash Account since the last preceding Valuation Date, and such ESOP Cash Account
      shall be charged with the amount of cash, or the value of such other Plan
      assets, if any, used to purchase such shares of ESOP Stock.

    5.5 Accounting
      for Allocations.
      The
      Benefits Committee shall establish or provide for the establishment of
      accounting procedures for the purpose of making the allocations, valuations
      and
      adjustments to Participants’ Accounts. From time to time, such procedures may be
      modified for the purpose of achieving equitable and nondiscriminatory
      allocations among the Accounts of Participants in accordance with the general
      concepts of the Plan and the provisions of this Article.

    5.6 Restricted
      Assets.
      Financed Shares which are pledged as collateral for an Acquisition Loan as
      provided in Section 5.11 shall not be considered part of the Trust for
      purposes of determining the Trust’s income and appreciation or depreciation for
      a valuation period. Such Financed Shares shall be considered part of the Trust
      for such purposes only after they are released from the Loan Suspense Account
      and allocated to Accounts under Section 5.11.

    5.7 Participant
      Statements.
      Each
      Participant will be entitled to an annual statement showing the additions to
      and
      subtractions from his or her account since the last Valuation Date and the
      fair
      market value of his Account as of the current Valuation Date.

    5.8 Registration
      of Securities.
      If the
      Trustee invests any part of the Trust, pursuant to the directions of the Trust
      Investment Committee, in ESOP Stock and the Trust Investment Committee
      thereafter directs the Trustee to dispose of such investment, or any part
      thereof, under circumstances which, in the opinion of counsel for the Trustee,
      require registration

    
      
        
        

      

      
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    of
      the
      securities under the Securities Act of 1933 or the registration or qualification
      of the securities under the Blue Sky laws or other laws of any state of states,
      the Company will take any and all such action as may be necessary or appropriate
      to effect such registration or qualification.

    5.9 Voting
      Of Employer Stock.
      The
      Trustee will vote shares of ESOP Stock in accordance with this Section
      5.9.

    5.9.1 If
      the
      Company has a registration-type class of securities (as described in section
      409(e)(4) of the Code), each Participant (or beneficiary of a deceased
      Participant) to whose account shares of ESOP Stock have been allocated will,
      as
      a named fiduciary (within the meaning of section 403(a)(2) of ERISA), have
      the
      right to direct the Trustee as to the voting of such ESOP Stock.

    5.9.2 If
      the
      Company does not have a registration-type class of securities (as described
      in
      section 409(e)(4) of the Code), the following voting procedure will
      apply:

    5.9.2.1 Each
      Participant (or beneficiary of a deceased Participant) to whose account shares
      of ESOP Stock have been allocated will, as a named fiduciary (within the meaning
      of section 403(a)(2) of ERISA), have the right to direct the Trustee as to
      the
      voting of such ESOP Stock with respect to any of the following corporate matters
      involving the Company or any Affiliated Company: (i) mergers or consolidations;
      (ii) recapitalizations; (iii) reclassifications; (iv) liquidations; (v)
      dissolutions; (vi) sales of substantially all assets of a trade or business;
      or
      (vii) such similar transactions as may be prescribed in Treasury
      Regulations.

    5.9.2.2 The
      Trust
      Investment Committee will, as a named fiduciary (within the meaning of section
      403(a)(2) of ERISA), direct the Trustee as to the voting of all shares of ESOP
      Stock with respect to corporate matters not described in Section
      5.9.2.1.

    
      
        
        

      

      
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    5.9.3
       Shares
      of
      ESOP Stock that have not been allocated and shares of ESOP Stock that have
      been
      allocated but for which no direction is received pursuant to Sections 5.9.1
      or
      5.9.2.1 will be voted by the Trustee in identical proportion to the votes of
      shares of ESOP Stock for which direction has been received pursuant to Sections
      5.9.1 or 5.9.2.1

    5.9.4 The
      Company shall furnish such proxy materials to the Trustee as are necessary
      to
      effectuate the voting procedures described in this Section.

    5.10 Tender
      or Exchange Offer.
      ESOP
      Stock that becomes the subject of a tender or exchange offer will be tendered
      or
      exchanged by the Trustee in accordance with this Section 5.10.

    5.10.1Each
      Participant (or beneficiary of a deceased Participant) to whose account shares
      of ESOP Stock have been allocated will, as a named fiduciary (within the meaning
      of section 403(a)(2) of ERISA), have the right to direct the Trustee as to
      the
      tender or exchange of such ESOP Stock.

    5.10.2Shares
      of
      ESOP Stock that have not been allocated and shares of ESOP Stock that have
      been
      allocated but for which no direction has been received pursuant to Sections
      5.10.1 will be tendered or exchanged by the Trustee in identical proportion
      to
      the shares of ESOP Stock for which direction has been received pursuant to
      Sections 5.10.1.

    5.11 Acquisition
      Loans.
      The
      Trust Investment Committee may, from time to time, direct the Trustee to incur
      one or more Acquisition Loans to finance the acquisition of ESOP Stock for
      the
      Trust or to repay a prior Acquisition Loan, subject to the following
      provisions.

    5.11.1 An
      Acquisition Loan shall be for a specific term, shall bear a reasonable rate
      of
      interest, and shall not be payable on demand. An Acquisition Loan may
      be

    
      
        
        

      

      
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    secured
      by pledge of Financed Shares acquired with the proceeds of such Acquisition
      Loan, or with the proceeds of a prior Acquisition Loan which is being refinanced
      and repaid with the proceeds of such current Acquisition Loan. No other assets
      of the Plan or Trust may be pledged as collateral for an Acquisition Loan,
      and
      no lender shall have recourse against any other Plan or Trust assets. If the
      lender is a party in interest under ERISA, the Acquisition Loan must provide
      for
      a transfer of Trust assets upon default only upon and to the extent of the
      failure of the Trust to meet the payment schedule of the Acquisition
      Loan.

    5.11.2 Payments
      of principal and/or interest on any Acquisition Loan shall be made by the
      Trustee only from Company contributions paid in cash to enable the Trustee
      to
      repay such loan or from earnings attributable to such contributions. In
      addition, the Trust Investment Committee may direct the Trustee to apply any
      cash dividends received by the Trustee on shares of ESOP Stock (whether or
      not
      allocated to Participants’ Accounts) to pay principal and interest on an
      Acquisition Loan; provided, however, that dividends paid on such shares may
      be
      used to repay only an Acquisition Loan the proceeds of which were used to
      acquire such shares for the Trust. In the event that the Trustee is unable
      to
      make payments of principal and/or interest on an Acquisition Loan when due,
      the
      Trust Investment Committee may direct the Trustee to sell any Financed Shares
      that have not been allocated to Participants’ Accounts or to obtain an
      Acquisition Loan in an amount sufficient to make such payments.

    5.11.3 Any
      pledge of Financed Shares must provide for the release of shares so pledged
      as
      payments are made on the Acquisition Loan by the Trustee. Financed Shares shall
      initially be credited to the Loan Suspense Account and shall be transferred
      for
      allocation to Participants’ ESOP Stock Accounts as payments are made on the
      Acquisition Loan by the Trustee. The number of shares so released shall bear
      the
      same relationship to the number

     

    
      
        
        

      

      
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    of
      Financed Shares held immediately before release for any Plan Year as the amount
      of principal and interest paid for such year bears to the total amount of
      principal and interest to be paid for such year and all following
      years.

     

    5.12Restrictions
      on Allocations.

    5.12.1 Notwithstanding
      any other provision in this Plan, if shares of ESOP Stock are sold to the Plan
      by a Company shareholder in a transaction for which such shareholder elects
      nonrecognition treatment pursuant to section 1042 of the Code, no assets
      attributable to such Stock may be allocated, during the nonallocation period,
      to
      the Account of any of the following:

    5.12.1.1the
      selling shareholder;

    5.12.1.2any
      person who is related to that shareholder (within the meaning of section 267(b)
      of the Code), but excluding lineal descendants of such shareholder as long
      as no
      more than five percent of the aggregate amount of all ESOP Stock sold by such
      shareholder in a transaction to which Code section 1042 applies is allocated
      to
      such lineal descendants; or

    5.12.1.3any
      other
      person who owns (after application of section 318(a) of the Code), more than
      25
      percent in value of outstanding securities of the Company at any time during
      the
      1-year period ending on the date of sale of such ESOP Stock.

    Further,
      no allocation of contributions may be made to the Accounts of persons described
      in Sections 5.12.1.1 through 5.12.1.3 unless additional allocations are made
      to
      other Participants, in accordance with the provisions of sections 401(a) and
      410
      of the Code. The nonallocation period is the period beginning on the date of
      sale and ending 10 years thereafter, or

    
      
        
        

      

      
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    if
      later,
      on the date of the allocation attributable to the final payment on the
      Acquisition Loan incurred with respect to the sale.

    5.12.2
       In
      the
      event that the Company shall become an S Corporation, as defined in section
      1361
      of the Code, then, notwithstanding any other provision in the Plan and pursuant
      to section 409(p) of the Code, no portion of the assets of the Plan attributable
      to (or allocable in lieu of) employer securities, as defined in section 409(l)
      of the Code, may, during a nonallocation year, accrue under the ESOP, or be
      allocated directly or indirectly under any plan of the Company (including the
      ESOP) meeting the requirements of section 401(a) for the benefit of any
      disqualified person.

    5.12.2.1
      For purposes of this Section 5.12.2, “nonallocation year” means any Plan Year of
      the Plan if, at any time during such Plan Year, the ESOP holds ESOP stock in
      an
      S Corporation and disqualified persons own at least 50 percent of the
      outstanding shares of stock in the Company. For purposes of this Section
      5.12.2.1, the rules of section 409(p)(3)(B) of the Code shall apply in
      determining ownership.

    5.12.2.2.
      For purposes on this Section 5.12.2, the term “disqualified person” has the
      meaning described in Treasury Regulation 1.409(p)-1T(d) or any successor
      provision.

    5.13 Dividends
      on ESOP Stock.
      Any
      cash dividends paid with respect to shares of ESOP Stock allocated to
      Participants’ ESOP Stock Accounts which are not applied to the repayment of any
      Acquisition Loan may, as determined by the Company, be (1) paid by the Company
      directly in cash to the Participants for whose benefit such ESOP Stock is held
      under the Plan, (2) paid to the Trustee and distributed by the Trustee to the
      Participant no later than 90

    
      
        
        

      

      
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    days
      after the end of the Plan Year in which paid to the Trustee or (3) paid to
      the
      Trustee and invested in accordance with Section 5.2.

    
      
        
        

      

      
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    ARTICLE
      VI

    VESTING
      AND DISTRIBUTION OF ACCOUNT BALANCES

    6.1 Retirement
      or Total Disability.
      Any
      Participant whose employment with the Company and all Affiliated Companies
      terminates (1) on or after his Normal Retirement Date or (2) at any time
      because of Total Disability shall be deemed to have retired under the Plan
      and
      shall be entitled to receive his entire Account Balance as provided in Sections
      6.5 and 6.7.

    6.2 Death.
      If a
      Participant’s employment with the Company and all Affiliated Companies
      terminates as a result of his death, his beneficiary shall be entitled to
      receive his entire Account Balance as provided in Sections 6.5 and 6.7. If
      distributions have begun before the date of the Participant’s death,
      distributions shall continue to be made to the Participant’s beneficiary on the
      same basis as in effect before the Participant’s death.

    6.3 Termination
      of Employment other than as a Result of Death, Retirement or Total
      Disability.
      Any
      Participant whose employment with the Company and all Affiliated Companies
      terminates for any reason other than under Sections 6.1 and 6.2 shall be
      entitled to receive his nonforfeitable interest in his Account Balance as
      provided in Section 6.5. Except as otherwise provided in Section 11.4, a
      Participant shall vest in his Account Balance in accordance with the following
      schedule:

    
      	
              Years
                of Credited Service

            	
              Nonforfeitable
                Percentage

            
	
              after
                January 1, 1999

            	
              of
                Account Balance

            
	 	
              less
                than 1

            	
              0

            	 
	 	
              1

            	
              20

            	 
	 	
              2

            	
              40

            	 
	 	
              3

            	
              60

            	 
	 	
              4

            	
              80

            	 
	 	
              5
                or more

            	
              100

            	 

    

    
      
        
        

      

      
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    6.4 Forfeitures
      and Restoration of Forfeited Amounts upon Reemployment.

    6.4.1 If
      a
      Participant who has terminated employment does not thereafter complete an Hour
      of Service before the end of the Plan Year in which occurs the earlier
      of:

    6.4.1.1 the
      date
      on which he receives a distribution of the nonforfeitable portion of his
      Account; or

    6.4.1.2 the
      date
      on which he incurs his fifth consecutive Break in Service,

    his
      Account shall be closed, and any forfeitable portion of his Account shall be
      forfeited. For purposes of this Section 6.4.1, a Participant who has a
      termination of employment at a time when his nonforfeitable interest in the
      Plan
      is zero shall be deemed to have received a distribution of his entire Account
      on
      the date of such termination of employment. Notwithstanding anything in the
      Plan
      to the contrary, any forfeiture of a portion of a Participant’s account shall be
      made in accordance with Treasury Regulation 54.4975-11(d)(4) or any successor
      provision.

    6.4.2 If
      a
      Participant who has received (or who was deemed to have received) a distribution
      described in Section 6.4.1.1, whereby any part of his Account has been
      forfeited, becomes an Employee again prior to incurring five consecutive Breaks
      in Service, the amount so forfeited shall be restored to his new Account.
      Unallocated contributions or forfeitures will be used to fund the restoration
      of
      Accounts pursuant to this Section 6.4.2; provided, however, that if such
      unallocated contributions and forfeitures are insufficient for this purpose,
      additional Participating Company contributions will be made to fund such
      restorations. If forfeitures for a Plan Year exceed the amount necessary for
      the
      restoration of accounts pursuant to this Section 6.4.2, such excess shall be
      allocated as an additional Participating Company contribution in accordance
      with
      Section 4.1.

    
      
        
        

      

      
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    6.5 Mode
      of Distribution.

    6.5.1 Except
      as
      otherwise provided in this Article VI, the nonforfeitable portion of a
      Participant’s Account, valued in accordance with Section 6.8, shall be paid to
      him or applied for his benefit in substantially equal periodic installments
      over
      a period of five years, plus one additional year (but not more than five
      additional years) for each $180,000 (or such higher amount as may be applicable
      under section 409(o) of the Code), or portion thereof by which such Account
      Balance exceeds $915,000 (or such higher amount as may be applicable under
      section 409(o) of the Code). The undistributed portion of the Employee’s Account
      shall continue to be invested as provided in the Plan.

    6.5.2
       Notwithstanding
      Section 6.5.1, effective for all distributions made on or after January 31,
      2007, a Participant, or his or her Beneficiary, may elect to receive the
      nonforfeitable portion of such Participant’s Account, valued in accordance with
      Section 6.8, in the form of a single sum payment, provided that such election
      is
      made (i) in accordance with procedures established from time to time by the
      Plan
      Administrator and (ii) not later that the date that distributions to the
      Participant, or his or her Beneficiary, are required to begin in accordance
      with
      Section 6.7.

    6.5.3
       Notwithstanding
      Section 6.5.1 or Section 6.5.2, if a Participant’s nonforfeitable interest in
      his Account Balance is $1,000 or less ($5,000 for distributions made prior
      to
      March 28, 2005), his Account shall be distributed in a single sum payment.
      Notwithstanding the foregoing, for distributions made after December 31, 2002,
      the value of a Participant’s nonforfeitable interest in his Account Balance
      shall be determined without regard to that portion of the Account Balance that
      is attributable to rollover contributions (and earnings

    
      
        
        

      

      
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    allocable
      thereto) within the meaning of sections 402(c), 403(a)(4), 403(b)(8),
      408(d)(3)(A)(ii), and 457(e)(16) of the Code.

    6.5.4
       The
      distribution of a Participant’s nonforfeitable interest in his ESOP Cash Account
      shall be made in cash. The distribution of a Participant’s nonforfeitable
      interest in his ESOP Stock Account shall be made in whole shares of ESOP Stock
      and in cash equal to the value of any fractional share. Notwithstanding the
      foregoing, if shares of ESOP Stock are not traded on an established market,
      a
      Participant (or beneficiary, if applicable) shall have the right to receive
      a
      cash distribution in lieu of shares of ESOP Stock.

    6.5.5
       If
      the
      distribution is made in shares of ESOP Stock and such shares are not traded
      on
      an established market, the former Participant (or his beneficiary, if
      applicable) will have the right to sell such shares to the Company at a price
      equal to their fair market value as of the last Valuation Date preceding the
      exercise of such right, as determined by an independent appraiser in accordance
      with section 401(a)(28) of the Code. Such right, known as a “put option,” may be
      exercised at any time during the two option periods described below. The first
      put option period shall be a period of 60 days commencing on the date the ESOP
      Stock is distributed to the Participant or beneficiary. If the put option is
      not
      exercised within that period, it will temporarily lapse. Upon the close of
      the
      Plan Year in which such temporary lapse of the put option occurs, the Trustee
      shall establish the value of the ESOP Stock, as determined by an independent
      appraiser, and shall notify each Participant (or beneficiary) who did not
      exercise the put option during the first option period of the revised value
      of
      the ESOP Stock. The second period during which the put option may be exercised
      shall commence on the date such notice of revaluation is given and shall
      permanently terminate 60 days thereafter.

    
      
        
        

      

      
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    6.5.6
       Financed
      Shares distributed to a Participant (or his beneficiary) shall be subject to
      a
      right of first refusal as provided in this Section 6.5.6, if such Financed
      Shares are not publicly traded at the time the right of first refusal may be
      exercised. Financed Shares distributed to a Participant (or his beneficiary)
      shall not be transferable to any person other than the Plan or the Company
      unless (i) the Participant or beneficiary receives a good faith written offer
      for the purchase of such Financed Shares from a person other than the Plan
      or
      the Company; (ii) the Participant or beneficiary provides written notice to
      the
      Trust Investment Committee of the receipt of such offer in a form reasonably
      acceptable to the Trust Investment Committee; (iii) such written notice includes
      a copy of such offer and a description of the terms and conditions of such
      offer; and (iv) the Plan fails to purchase such Financed Shares before the
      close
      of the 14th day following the Trust Investment Committee’s receipt of such
      written notice. In exercising its right of first refusal under this
      Section 6.5.6, the Plan may not purchase Financed Shares for an amount less
      than the greater of (A) the purchase price and other terms offered by the
      offeror for such Financed Shares or (B) the value of such Financed Shares as
      determined pursuant to Treasury Regulation § 54.4975-11(d)(5). The Trust
      Investment Committee shall immediately notify the Board of Directors of its
      receipt of a written notice from a Participant or beneficiary of any offer
      to
      purchase Financed Shares that are subject to the right of first refusal
      hereunder, and of its intentions regarding the exercise of such right of first
      refusal. If the Trust Investment Committee notifies the Board of Directors
      on
      behalf of the Plan that the Plan shall decline to exercise such right, the
      Company shall have the right to exercise such right to the same extent as the
      Plan, provided that such right must be exercised before the close of the 14th
      day following the Trust Investment Committee’s receipt of the Participant’s or
      beneficiary’s

    
      
        
        

      

      
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    notice
      of
      such offer. Such notice shall be deemed received on the date actually received
      by the Trust Investment Committee.

    6.6 Pre-Retirement
      Diversification Rights.
      The
      Benefits Committee shall establish a procedure pursuant to which, during an
      Election Period, each Qualified Participant may direct the Trustee as to the
      investment of the value (determined as of the immediately preceding Valuation
      Date) of at least 25% of the number of shares of ESOP Stock credited to his
      Account. The amount with respect to which a Qualified Participant may direct
      the
      investment during any Election Period subsequent to the Qualified Participant’s
      initial Election Period shall be determined by multiplying the number of shares
      of ESOP Stock credited to his Account by 25% (or, with respect to a
      Participant’s final election, 50%), reduced by the aggregate number of shares
      subject to any prior elections by such Qualified Participant pursuant to this
      Section. The procedure established by the Benefits Committee may provide that
      the Qualified Participant may direct the investment of the amount determined
      pursuant to this Section by instructing the Trustee to:

    6.6.1 distribute
      such amount to him within ninety (90) days after the Election
      Period;

    6.6.2 if
      the
      Benefits Committee selects three or more investment options other than ESOP
      Stock for purposes of this Section, to invest such amount, within ninety (90)
      days after the Election Period, in one or more of such investment options;
      or

    6.6.3 if
      the
      Company maintains another qualified defined contribution plan that permits
      participant direction of investments, to transfer such amount, within ninety
      (90) days after the Election Period, to such other plan.

    
      
        
        

      

      
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    The
      procedure established by the Benefits Committee, and the effectuation of a
      Qualified Participant’s elections made pursuant to such procedure, shall comply
      with section 401(a)(28) of the Code.

    6.7 Timing
      of Benefit Distributions.

    6.7.1 Special
      Distribution Rules.
      The
      following special distribution rules shall supersede the general distribution
      rules of Sections 6.7.2 through 6.7.3:

    6.7.1.1 Required
      Beginning Date.
      Notwithstanding any other provision of the Plan, benefits to a Participant
      (or
      to a Participant’s beneficiary following the Participant’s death before benefits
      have begun to be paid), shall begin to be paid not later than the Required
      Beginning Date.

    6.7.1.2 Small
      Dollar Cash-Outs.
      If the
      value of the nonforfeitable Account Balance of a Participant who separates
      from
      service to the Company and all Affiliated Companies is $1,000 or less ($5,000
      for distributions made prior to March 28, 2005), his Account Balance shall
      be
      distributed in a single sum as soon as administratively practicable following
      the Participant’s separation from service.

    6.7.1.3 Financed
      Shares.
      Except
      for distributions subject to Sections 6.7.1.1 and 6.7.1.2 and
      notwithstanding any other Plan provision, to the extent a Participant’s Account
      Balance holds Financed Shares, distributions shall not begin before the
      Acquisition Loan with respect to such Financed Shares has been repaid in
      full.

    6.7.1.4 Required
      Consent to Distribution.
      Except
      for distributions (i) subject to Section 6.7.1.2, (ii) payable following a
      Participant’s death or (iii) payable following a Participant’s Normal Retirement
      Date, no distribution will be made without the Participant’s consent. Moreover,
      for such consent to be valid, it must be given not more than 90

    
      
        
        

      

      
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    days
      before the date as of which distributions begin. If a Participant does not
      consent to a distribution of his nonforfeitable interest in his Account Balance
      at the time that it first becomes distributable, such nonforfeitable interest
      shall continue to be held in the Plan until the earlier of: (i) the close of
      the
      Plan Year in which the Participant reaches Normal Retirement Date or dies,
      or
      (ii) as soon as practicable following such time as the Participant submits
      a
      written request for such distribution to the Benefits Committee.

    6.7.2Normal
      Retirement, Total Disability or Death.

    6.7.2.1 Normal
      Retirement or Total Disability.
      Except
      as otherwise provided in Section 6.7.1, distributions with respect to a
      Participant who separates from service to the Company and all Affiliated
      Companies on or after his Normal Retirement Date or on account of a Total
      Disability shall begin as soon as administratively practicable following such
      separation from service, but not later than the close of the Plan Year following
      the Plan Year during which such separation from service occurs.

    6.7.2.2 Death.
      If a
      Participant separates from service to the Company and all Affiliated Companies
      because of death, but the commencement of the distribution is delayed beyond
      the
      close of the Plan Year following the Plan Year during which such separation
      from
      service occurs because of the application of Section 6.7.1.3 (regarding the
      effect of the existence of an Acquisition Loan on the timing of distributions),
      then, notwithstanding any other provision of this Article VI to the
      contrary:

    (i) if
      (and
      to the extent that) the Participant’s beneficiary is a person or entity that is
      not the Participant’s surviving spouse, distribution with respect to such
      Participant shall be made in a single sum as soon as practicable following
      the

    
      
        
        

      

      
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    repayment
      of the Acquisition Loan in full, or, if earlier, by the last day of the calendar
      year which contains the fifth anniversary of the Participant’s date of death;
      and

    (ii) if
      (and
      to the extent that) the Participant’s beneficiary is the Participant’s spouse,
      distribution with respect to such Participant shall be paid in the form
      described in Section 6.5.1, unless, effective January 31, 2007, the
      Participant’s beneficiary elects otherwise in accordance with Section 6.5.2, and
      shall begin to be paid as soon as practicable following the repayment of the
      Acquisition Loan, or, if earlier, the date the Participant would have attained
      age 701⁄2.

    6.7.3 Other
      Separation From Service.
      Except
      as otherwise provided in Section 6.7.1, distributions with respect to a
      Participant who separates from service to the Company and all Affiliated
      Companies before his Normal Retirement Date and not as a result of his Total
      Disability or death, shall begin as soon as administratively practicable
      following the fifth anniversary of such separation from service, but not later
      than the close of the sixth Plan Year beginning after such separation from
      service, provided that distributions shall not begin under this
      Section 6.7.3 if the Participant is reemployed by the Company or an
      Affiliated Company before such Participant’s Account has begun to be distributed
      in accordance with Section 6.7. Notwithstanding anything in this Section 6.7.3
      to the contrary, effective January 31, 2007, if a Participant who separates
      from
      service to the Company and all Affiliated Companies before his Normal Retirement
      Date, and not as a result of his Total Disability or death, elects to receive
      his benefit in the form of a single sum payment in accordance with Section
      6.5.2, such distribution may begin as soon as administratively possible
      following: (i) such election if such election is made prior to March
      15th
      of the
      Plan Year in which the Participant elects such distribution; or (ii) the
      90th
      day
      after the close of the Plan Year in which the Participant
      elects

    
      
        
        

      

      
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    such
      distribution if such election is made on or after March 15th
      of the
      Plan Year in which the Participant elects such distribution; but in any event,
      not later than the close of the sixth Plan Year beginning after such separation
      from service, provided that distributions shall not begin under this Section
      6.7.3 if the Participant is reemployed by the Company or an Affiliated Company
      before such Participant’s Account has begun to be distributed in accordance with
      Section 6.7.

    6.8 Valuation
      for Distribution.
      For the
      purposes of paying the amounts to be distributed to a Participant or his
      beneficiaries under the provisions of this Article, the value of a Participant’s
      Account shall be determined in accordance with Article V as of the
      Valuation Date immediately preceding the date of payment and shall be adjusted
      for any contributions or forfeitures which have been allocated to the
      Participant’s Account since that Valuation Date.

    6.9 Direct
      Rollover.
      Notwithstanding any provision of the Plan, a Distributee may elect, at the
      time
      and in the manner prescribed by the Benefits Committee, to have any portion
      of
      an Eligible Rollover Distribution paid directly to the Eligible Retirement
      Plan
      specified by that Distributee as a Direct Rollover.

    6.10 Minimum
      Required Distributions On or After January 1, 2003.
      With
      respect to distributions under the Plan made on or after January 1, 2003, the
      Plan will apply the minimum distribution requirements of Code §401(a)(9) in
      accordance with the Treasury regulations under Code §401(a)(9) as described in
      this Section 6.10. The requirements of this Section 6.10 will take precedence
      over any inconsistent provisions of the Plan. Notwithstanding the other
      provisions of this Section 6.10, distributions may be made under a designation
      made before January 1, 1984, in accordance with section 242(b) of the Tax Equity
      and Financial Responsibility Act (TEFRA).

    
      
        
        

      

      
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    6.10.1 Time
      and Manner of Distribution.

    6.10.1.1
      Required
      Beginning Date.
      The
      Participant’s entire interest will be distributed, or begin to be distributed,
      to the Participant no later than the Participant’s Required Beginning
      Date.

    6.10.1.2
      Death
      of Participant Before Distributions Begin.
      If the
      Participant dies before distributions begin, the Participant’s entire interest
      will be distributed, or begin to be distributed, no later than as
      follows:

    (i)
      If
      the Participant’s surviving spouse is the Participant’s sole designated
      beneficiary, then distributions to the surviving spouse will begin by December
      31 of the calendar year immediately following the calendar year in which the
      Participant dies, or by December 31 of the calendar year in which the
      Participant would have attained age 701⁄2, if later.

    (ii)
      If
      the Participant’s surviving spouse is not the Participant’s sole designated
      beneficiary, then distributions to the designated beneficiary will begin by
      December 31 of the calendar year immediately following the calendar year in
      which the Participant died.

    (iii)
      If
      there is no designated beneficiary as of September 30 of the year following
      the
      year of the Participant’s death, the Participant’s entire interest will be
      distributed by December 31 of the calendar year containing the fifth anniversary
      of the Participant’s death.

    (iv)
      If
      the Participant’s surviving spouse is the Participant’s sole designated
      beneficiary and the surviving spouse dies after the Participant but before
      distributions to the surviving spouse begin, this Section 6.10.1.2, other than
      Section 6.10.1.2(i), will apply as if the surviving spouse were the
      Participant.

    
      
        
        

      

      
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    For
      purposes of this Section 6.10.1.2 and Section 6.10.3, unless Section
      6.10.1.2(iv) applies, distributions are considered to begin on the Participant’s
      Required Beginning Date. If Section 6.10.1.2(iv) applies, distributions are
      considered to begin on the date distributions are required to begin to the
      surviving spouse under Section 6.10.1.2(i). If distributions under an annuity
      purchased from an insurance company irrevocably commence to the Participant
      before the Participant’s Required Beginning Date (or to the Participant’s
      surviving spouse before the date distributions are required to begin to the
      surviving spouse under Section 6.10.1.2(i)), the date distributions are
      considered to begin is the date distributions actually commence.

    6.10.1.3
      Forms
      of Distribution.
      Unless
      the Participant’s interest is distributed in the form of an annuity purchased
      from an insurance company or in a single sum on or before the Required Beginning
      date, as of the first distribution calendar year distributions will be made
      in
      accordance with Section 6.10.2 and Section 6.10.3. If the Participant’s interest
      is distributed in the form of an annuity purchased from an insurance company,
      distributions thereunder will be made in accordance with the requirements of
      section 401(a)(9) of the Code and the Treasury regulations.

    6.10.2 Required
      Minimum Distributions During Participant’s Lifetime.

    6.10.2.1
      Amount
      of Required Minimum Distribution for Each Distribution Calendar
      Year.
      During
      the Participant’s lifetime, the minimum amount that will be distributed for each
      distribution calendar year is the lesser of:

    (i)
      the
      quotient obtained by dividing the Participant’s account balance by the
      distribution period in the Uniform Lifetime Table set forth in
      section

    
      
        
        

      

      
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    1.401(a)(9)-9
      of the Treasury regulations, using the Participant’s age as of the Participant’s
      birthday in the distribution calendar year; or

    (ii)
      if
      the Participant’s sole designated beneficiary for the distribution calendar year
      is the Participant’s spouse, the quotient obtained by dividing the Participant’s
      account balance by the number in the Joint and Last Survivor Table set forth
      in
      section 1.401(a)(9)-9 of the Treasury regulations, using the Participant’s and
      spouse’s attained ages as of the Participant’s and spouse’s birthdays in the
      distribution calendar year.

    6.10.2.2
      Lifetime
      Required Minimum Distributions Continue Through Year of Participant’s
      Death.
      Required minimum distributions will be determined under this Section 6.10.2
      beginning with the first distribution calendar year and up to and including
      the
      distribution calendar year that includes the Participant’s date of
      death.

    6.10.3 Required
      Minimum Distributions After Participant’s Death.

    6.10.3.1
      Death
      On or After Date Distributions Begin.

    6.10.3.1.1
      Participant
      Survived by Designated Beneficiary.
      If the
      Participant dies on or after the date distributions begin and there is a
      designated beneficiary, the minimum amount that will be distributed for each
      distribution calendar year after the year of the Participant’s death is the
      quotient obtained by dividing the Participant’s account balance by the longer of
      the remaining life expectancy of the Participant or the remaining life
      expectancy of the Participant’s designated beneficiary, determined as
      follows:

    (i)
      The
      Participant’s remaining life expectancy is calculated using the age of the
      Participant in the year of death, reduced by one for each subsequent
      year.

    
      
        
        

      

      
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    (ii)
      If
      the Participant’s surviving spouse is the Participant’s sole designated
      beneficiary, the remaining life expectancy of the surviving spouse is calculated
      for each distribution calendar year after the year of the Participant’s death
      using the surviving spouse’s age as of the spouse’s birthday in that year. For
      distribution calendar years after the year of the surviving spouse’s death, the
      remaining life expectancy of the surviving spouse is calculated using the age
      of
      the surviving spouse as of the spouse’s birthday in the calendar year of the
      spouse’s death, reduced by one for each subsequent calendar year.

    (iii)
      If
      the Participant’s surviving spouse is not the Participant’s sole designated
      beneficiary, the designated beneficiary’s remaining life expectancy is
      calculated using the age of the beneficiary in the year following the year
      of
      the Participant’s death, reduced by one for each subsequent year.

    6.10.3.1.2
      No
      Designated Beneficiary.
      If the
      Participant dies on or after the date distributions begin and there is no
      designated beneficiary as of September 30 of the year after the year of the
      Participant’s death, the minimum amount that will be distributed for each
      distribution calendar year after the year of the Participant’s death is the
      quotient obtained by dividing the Participant’s account balance by the
      Participant’s remaining life expectancy calculated using the age of the
      Participant in the year of death, reduced by one for each subsequent
      year.

    6.10.3.2
      Death
      Before Date Distributions Begin.

    6.10.3.2.1
      Participant
      Survived by Designated Beneficiary.
      If the
      Participant dies before the date distributions begin and there is a designated
      beneficiary, the minimum amount that will be distributed for each distribution
      calendar year after the year of the Participant’s death is the quotient obtained
      by dividing the Participant’s account balance by

    
      
        
        

      

      
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    the
      remaining life expectancy of the Participant’s designated beneficiary,
      determined as provided in Section 6.10.3(1).

    6.10.3.2.2
      No
      Designated Beneficiary.
      If the
      Participant dies before the date distributions begin and there is no designated
      beneficiary as of September 30 of the year following the year of the
      Participant’s death, distribution of the Participant’s entire interest will be
      completed by December 31 of the calendar year containing the fifth anniversary
      of the Participant’s death.

    6.10.3.2.3
      Death
      of Surviving Spouse Before Distributions to Surviving Spouse Are Required to
      Begin.
      If the
      Participant dies before the date distributions begin, the Participant’s
      surviving spouse is the Participant’s sole designated beneficiary, and the
      surviving spouse dies before distributions are required to begin to the
      surviving spouse under Section 6.10.1.2(i), this Section 6.10.3.2 will apply
      as
      if the surviving spouse were the Participant.

    6.10.4 Definitions.

    a.
      Designated
      Beneficiary.
      The
      individual who is designated as the beneficiary under Section 2.3 of the Plan
      and is the designated beneficiary under Code Section 401(a)(9) and section
      1.401(a)(9)-1, Q&A-4, of the Treasury regulations.

    b.
      Distribution
      calendar year.
      A
      calendar year for which a minimum distribution is required. For distributions
      beginning before the Participant’s death, the first distribution calendar year
      is the calendar year immediately preceding the calendar year which contains
      the
      Participant’s Required Beginning Date. For distributions beginning after the
      Participant’s death, the first distribution calendar year is the calendar year
      in which distributions are required to begin under Section 6.10.1.2. The
      required minimum distribution for the

    
      
        
        

      

      
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    Participant’s
      first distribution calendar year will be made on or before the Participant’s
      Required Beginning Date. The required minimum distribution for other
      distribution calendar years, including the required minimum distribution for
      the
      distribution calendar year in which the Participant’s Required Beginning Date
      occurs, will be made on or before December 31 of that distribution calendar
      year.

    c.
      Life
      expectancy.
      Life
      expectancy as computed by use of the Single Life Table in section 1.401(a)(9)-9
      of the Treasury regulations.

    d.
      Participant’s
      account balance.
      The
      account balance as of the last valuation date in the calendar year immediately
      preceding the distribution calendar year (valuation calendar year) increased
      by
      the amount of any contributions made and allocated or forfeitures allocated
      to
      the account balance as of dates in the valuation calendar year after the
      valuation date and decreased by distributions made in the valuation calendar
      year after the valuation date. The account balance for the valuation calendar
      year includes any amounts rolled over or transferred to the Plan either in
      the
      valuation calendar year or in the distribution calendar year if distributed
      or
      transferred in the valuation calendar year.

    e.
      Required
      Beginning Date.
      The
      Required Beginning Date specified in Section 6.7.1.1 of the
      Plan.

    
      
        
        

      

      
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    ARTICLE
      VII

    DEATH
      BENEFITS

     

    7.1 Beneficiary.
      Following the death of a married Participant, his entire Account Balance shall
      be paid to his surviving spouse unless the Participant has designated a
      different beneficiary in the manner prescribed by the Benefits Committee
      pursuant to Section 2.3, and (i) the Participant’s Spouse has consented to
      that designation in writing, in an instrument that acknowledges the effect
      of
      the designation and that is witnessed by a representative of the Benefits
      Committee or by a notary public, or (ii) the Benefits Committee concludes that
      such consent cannot be obtained because the Participant has no Spouse or because
      the Spouse cannot be located or because such consent is not required under
      such
      circumstances as are prescribed by governmental regulations. If the Participant
      is not married on the date of his death, his beneficiary shall be the person
      or
      persons designated by him pursuant to Section 2.3. Any portion of the
      Participant’s Account Balances which is undisposed of due to the failure to
      designate a beneficiary or to the failure of the designated beneficiary or
      Spouse to survive the Participant shall be paid to the Participant’s
      estate.

    7.2 Form
      of Payment.
      Death
      benefits shall be payable in the form described in Section 6.5.

    
      
        
        

      

      
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    ARTICLE
      VIII

    MANAGEMENT
      OF FUNDS

     

    8.1 Designation
      of Trustee.
      The
      Trust Investment Committee shall name and designate a Trustee and shall enter
      into a Trust Agreement with such Trustee on behalf of the Participating
      Companies. The Trust Investment Committee shall have the power to amend the
      Trust Agreement, remove any Trustee, and designate a successor Trustee, as
      provided in the Trust Agreement. All of the assets of the Plan shall be held
      by
      the Trustee for use in accordance with this Plan in providing for the benefits
      hereunder.

    8.2 Exclusive
      Benefit.
      Prior
      to the satisfaction of all liabilities under the Plan in the event of
      termination of the Plan, no part of the corpus or income of the Trust shall
      be
      used for or diverted to purposes other than for the exclusive benefit of
      Participants and their beneficiaries except as expressly provided in this Plan
      and in the Trust Agreement.

    8.3 No
      Interest in Trust.
      No
      person shall have any interest in or right to any part of the assets or income
      of the Trust, except to the extent expressly provided in this Plan and in the
      Trust Agreement.

    8.4 Trust
      Investment Committee.
      The
      Trust Investment Committee shall be the named fiduciary with respect to
      management and control of Plan assets held by the Trustee and shall have
      exclusive and sole responsibility for investment thereof in accordance with
      the
      Trust Agreement and the provisions of the Plan. The Trustee shall have the
      exclusive and sole responsibility for the custody of Plan assets held by it
      in
      accordance with the Trust Agreement and the provisions of the Plan, for
      following the directions of the Trust Investment Committee and of Participants
      as required by the Plan and Trust Agreement, and for selecting short-term
      investment funds for the investment of cash balances held by the
      Trust.

    
      
        
        

      

      
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    ARTICLE
      IX

    ADMINISTRATION

     

    9.1
       Administrator.
      The
      Company shall control and manage the operation of the Plan and shall be the
      Plan
      Administrator.

    9.2
       Benefits
      Committee.
      The
      Company shall delegate its discretionary authority and control with respect
      to
      Plan administration to the Benefits Committee, which Benefits Committee shall
      consist of not less than three persons who will serve at the pleasure of the
      Board of Directors. The Benefits Committee members may be, but need not be,
      employees of the Company or members of the Trust Investment Committee. They
      shall be entitled to reimbursement of expenses but to no compensation for their
      service on the Benefits Committee. Any reimbursement of expenses of the Benefits
      Committee shall be paid directly by the Company.

    9.3
       Ministerial
      Functions.
      The
      Benefits Committee shall delegate its ministerial duties or functions to such
      person or persons as the Benefits Committee shall select. Such person or persons
      shall be responsible for the general administration of the Plan under the policy
      guidance of the Benefits Committee. Such person or persons may be employees
      of
      the Company and shall be compensated for services and expenses by the Company
      according to its normal employment policies, without special or additional
      compensation for service hereunder.

    9.4
       Duties
      and Powers of Benefits Committee.
      In
      addition to the duties and powers described elsewhere hereunder, the Benefits
      Committee shall have the following specific duties and powers:

    9.4.1 to
      enact
      uniform and non-discriminatory rules, regulations, and procedures necessary
      or
      desirable to carry out the provisions of the Plan;

    
      
        
        

      

      
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    9.4.2 to
      interpret the provisions of the Plan and to resolve questions or disputes
      relating to or arising under the Plan;

    9.4.3 to
      establish reasonable procedures to determine the qualified status of domestic
      relations orders which relate to the Plan, as provided in section 414(p) of
      the
      Code; and

    9.4.4 to
      retain
      such consultants, accountants, and attorneys as may be deemed necessary or
      desirable to render statements, reports, and advice with respect to the Plan,
      and to assist the Benefits Committee in complying with all applicable rules
      and
      regulations affecting the Plan. Any consultants, accountants, or attorneys
      may
      be the same as those retained by the Company.

    9.5
       Functioning
      of Benefits Committee.
      The
      Benefits Committee shall keep accurate records and minutes of meetings,
      interpretations, and decisions. The Benefits Committee shall act by majority
      vote of its members, and such action shall be evidenced by written
      documents.

    9.6
      Disputes.

    9.6.1 In
      the
      event that the Benefits Committee denies, in whole or in part, a claim for
      benefits by a Participant or his beneficiary, the Benefits Committee shall
      furnish notice of the denial to the claimant, setting forth (1) the
      specific reasons for the denial, (2) specific reference to the pertinent Plan
      provisions on which the denial is based, (3) a description of any additional
      information necessary for the claimant to perfect the claim and an explanation
      of why such information is necessary, and (4) appropriate information as to
      the
      steps to be taken if the claimant wishes to submit his claim for review. Such
      notice shall be forwarded to the claimant within 90 days of the Benefits
      Committee’s receipt of the claim; provided, however,

    
      
        
        

      

      
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    that
      in
      special circumstances the Benefits Committee may extend the response period
      for
      up to an additional 90 days, provided that the Benefits Committee notifies
      the
      claimant in writing of the extension and specifies the reason or reasons for
      the
      extension.

    9.6.2 Within
      60
      days of receipt of a notice of claim denial, a claimant or his duly authorized
      representative may petition the Benefits Committee in writing for a full and
      fair review of the denial. The claimant or his duly authorized representative
      shall have the opportunity to review pertinent documents and to submit issues
      and comments in writing to the Benefits Committee. The Benefits Committee shall
      review the denial and shall communicate its decision and the reasons therefor
      to
      the claimant in writing within 60 days of receipt of the petition; provided,
      however, that the Benefits Committee may extend the 60-day response period
      in
      special circumstances for up to an additional 60 days. Written notice of the
      extension shall be sent to the claimant prior to the commencement of the
      extension.

    9.7 Indemnification.
      Each
      member of the Benefits Committee, the Trust Investment Committee and any other
      person who is an Employee or director of the Company or an Affiliated Company,
      or any person serving as Trustee, shall be indemnified by the Company against
      expenses (other than amounts paid in settlement to which the Company does not
      consent) reasonably incurred by him in connection with any action to which
      he
      may be a party by reason of his performance of administrative functions and
      duties under the Plan, except in relation to matters as to which he shall be
      adjudged in such action to be personally guilty of willful misconduct in the
      performance of his duties. The foregoing right to indemnification shall be
      in
      addition to such other rights as the Benefits Committee member or other person
      may enjoy as a matter of law or by reason of insurance coverage of any kind.
      Rights granted hereunder shall be

    
      
        
        

      

      
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    in
      addition to and not in lieu of any rights to indemnification to which the
      Benefits Committee member or other person may be entitled pursuant to the
      by-laws of the Company.

    9.8
       Expenses.
      The
      expenses incident to the operation of the Plan and the Trust shall be paid
      or
      reimbursed from the Trust, unless they are paid directly by the Company and
      the
      Company does not seek reimbursement for such payment.

    
      
        
        

      

      
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    ARTICLE
      X

    AMENDMENT
      AND TERMINATION

     

    10.1 Power
      of Amendment and Termination.
      It is
      the intention of the Company that this Plan will be permanent. However, the
      Company reserves the right to amend the Plan or terminate the Plan at any time
      by action of the Board of Directors or its delegate. Except as expressly
      provided elsewhere in the Plan, prior to the satisfaction of all liabilities
      with respect to the benefits provided under this Plan, no such amendment or
      termination shall cause any part of the monies contributed hereunder to revert
      to the Company or to be diverted to any purpose other than for the exclusive
      benefit of Participants and their beneficiaries. Except as otherwise permitted
      by law, no amendment shall have the effect of retroactively depriving
      Participants of benefits already accrued under the Plan. In the event of a
      termination, a partial termination, or a complete discontinuance of
      contributions, or in the event that the Company is dissolved, liquidated, or
      adjudicated bankrupt, the interests of the affected Participants, their estates,
      and their beneficiaries shall be fully vested. Any amendment shall become
      effective as of the date designated by the Board of Directors.

    10.2 Merger.
      The
      Plan shall not be merged with or consolidated with, nor shall its assets be
      transferred to, any other qualified retirement plan unless each Participant
      would receive a benefit after such merger, consolidation, or transfer (assuming
      the surviving or transferee plan then terminated) which is of equal or greater
      actuarial value than the benefit he would have received if the Plan had been
      terminated on the day before such merger, consolidation, or transfer. The Plan
      shall not accept a transfer of any amounts which would cause the Plan to be
      a
      direct or indirect transferee of a plan to which the joint and survivor annuity
      and pre-retirement survivor annuity requirements of sections 401(a)(11) and
      417
      of the Code apply.

    
      
        
        

      

      
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    10.3 Change
      in
      Control.

    10.2.1 In
      the
      event of a Change in Control, as defined in Section 10.2.2, the interests of
      the
      affected Participants, their estates, and their beneficiaries shall be fully
      vested.

    10.2.2 “Change
      in Control”
      shall
      mean:

    10.2.2.1 the
      acquisition by any person or group acting in concert of beneficial ownership
      of
      forty percent (40%) or more of any class of equity security of Yardville
      National Bank (the “Bank”) or Yardville National Bancorp (the Bank’s “Holding
      Company”); or

    10.2.2.2 the
      sale
      of all or substantially all of the assets of the Bank or Holding Company;
      or,

    10.2.2.3 any
      merger, consolidation, issuance of securities or purchase of assets, the result
      of which would be the occurrence of any event described in sections 10.2.2.1
      or
      10.2.2.2.

    
      
        
        

      

      
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    ARTICLE
      XI

    TOP-HEAVY
      PROVISIONS

     

    11.1 General.
      The
      following provisions shall apply automatically to the Plan and shall supersede
      any contrary provisions for each Plan Year in which the Plan is a Top-Heavy
      Plan. It is intended that this Article shall be construed in accordance with
      the
      provisions of section 416 of the Code.

    11.2 Definitions.
      The
      following definitions shall supplement those set forth in Article I of the
      Plan:

    11.2.1“Aggregation
      Group”
      shall
      mean:

    11.2.1.1 each
      plan
      (including a frozen plan or a plan which has been terminated during the 60-month
      period ending on the Determination Date) of the Company or an Affiliated Company
      in which a Key Employee is a participant,

    11.2.1.2 each
      other plan (including a frozen plan or a plan which has been terminated during
      the 60-month period ending on the Determination Date) of the Company or an
      Affiliated Company which enables any plan in which a Key Employee participates
      to meet the requirements of sections 401(a)(4) and 410 of the Code,
      and

    11.2.1.3 each
      other plan (including a frozen plan or a plan which has been terminated during
      the 60-month period ending on the Determination Date) of the Company or an
      Affiliated Company which is included by the Benefits Committee if the
      Aggregation Group, including such a plan, would continue to meet the
      requirements of sections 401(a)(4) and 410 of the Code.

    11.2.2 “Determination
      Date”
      shall
      mean the last day of the preceding Plan Year or, in the case of the first Plan
      Year, the last day of such Plan Year.

    
      
        
        

      

      
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    11.2.3 “Key
      Employee”
      shall
      mean any Employee or former Employee who at any time during the 60-month period
      ending on the Determination Date is described below. Key Employee shall also
      include the beneficiaries of such persons. Notwithstanding the foregoing, the
      number of persons described in Section 11.2.3.2 for the entire 60-month period
      shall be limited to 10.

    11.2.3.1 An
      officer of the Company or an Affiliated Company having annual compensation,
      as
      defined in section 414(q) of the Code, from the Company and all Affiliated
      Companies for a Plan Year during such period greater than fifty percent (50%)
      of
      the amount in effect under section 415(b)(1)(A) of the Code for such Plan
      Year.

    11.2.3.2 One
      of
      the 10 Employees with annual compensation, as defined in section 414(q) of
      the
      Code, from the Company and all Affiliated Companies greater than the amount
      described in section 415(c)(1)(A) of the Code who own (or are considered as
      owning, within the meaning of section 318 of the Code) the largest interests
      in
      the Company or any Affiliated Company, provided that such interest exceeds
      one-half percent (0.5%) of the total share ownership of the Company or
      Affiliated Company.

    11.2.3.3 A
      five-percent (5%) owner of the Company or any Affiliated Company.

    11.2.3.4 A
      one-percent (1%) owner of the Company or any Affiliated Company who has annual
      compensation, as defined in section 414(q) of the Code, from the Company and
      all
      Affiliated Companies which, in the aggregate, is in excess of
      $150,000.

    The
      above
      determinations will be made in accordance with section 416(i) of the Code.
      No
      more than 50 employees (or, if less, the greater of three employees or ten
      percent (10%) of the greatest

    
      
        
        

      

      
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    number
      of
      employees, including Leased Employees, employed by the Company and all
      Affiliated Companies during the 60-month period ending on the Determination
      Date) shall be treated as officers, for which purpose employees described in
      section 414(q)(8) of the Code shall not be taken into account.

    11.2.4 “Key
      Employee Ratio”
      shall
      mean the ratio for any Plan Year, calculated as of the Determination Date of
      such Plan Year, determined by comparing the amount described in Section 11.2.4.1
      with the amount described in Section 11.2.4.2 after deducting from each
      such amount any portion thereof described in Section 11.2.4.3.

    11.2.4.1 The
      sum
      of (i) the present value of all accrued benefits of Key Employees under all
      qualified defined benefit plans included in the Aggregation Group, (ii) the
      balances in all of the accounts of Key Employees under all qualified defined
      contribution plans included in the Aggregation Group, and (iii) the amounts
      distributed from all plans in such Aggregation Group to or on behalf of any
      Key
      Employee during the period of five Plan Years ending on the Determination Date,
      except benefits paid on account of death in excess of the accrued benefit or
      account balances immediately prior to death.

    11.2.4.2 The
      sum
      of (i) the present value of all accrued benefits of all participants under
      all
      qualified defined benefit plans included in the Aggregation Group, (ii) the
      balances in all of the accounts of all participants under all qualified defined
      contribution plans included in the Aggregation Group and (iii) the amounts
      distributed from all plans in such Aggregation Group to or on behalf of any
      participant during the period of five Plan Years ending on the Determination
      Date.

    11.2.4.3 The
      sum
      of (i) all rollover contributions (or fund to fund transfers) to the Plan by
      an
      Employee from a plan sponsored by an employer which is not the

    
      
        
        

      

      
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    Company
      or an Affiliated Company, (ii) any amount that is included in Sections
      11.2.4.1 and 11.2.4.2 for a person who is a Non-Key Employee as to the Plan
      Year
      of reference but who was a Key Employee as to any earlier Plan Year, and (iii)
      any amount that is included in Sections 11.2.4.1 and 11.2.4.2 for a person
      who
      had not performed any services for the Company during the five-year period
      ending on the Determination Date.

    11.2.4.4 The
      present value of accrued benefits under all qualified defined benefit plans
      included in the Aggregation Group shall be determined on the basis of the 1984
      Unisex Mortality Table and an interest rate of seven percent (7%).

    11.2.5 “Non-Key
      Employee”
      shall
      mean any person who is an Employee or a former Employee of the Company or an
      Affiliated Company in any Plan Year but who is not a Key Employee as to that
      Plan Year. Non-Key Employee shall also include the beneficiaries of such
      persons.

    11.2.6 “Super
      Top-Heavy Plan”
      shall
      mean each plan in an Aggregation Group if, as of the applicable Determination
      Date, the Key Employee Ratio in the plan exceeds ninety percent (90%),
      determined in accordance with section 416 of the Code.

    11.2.7 “Top-Heavy
      Plan”
      shall
      mean each plan in an Aggregation Group if, as of the applicable Determination
      Date, the Key Employee Ratio exceeds sixty percent (60%), determined in
      accordance with section 416 of the Code.

    11.3 Minimum
      Contribution for Non-Key Employees.

    11.3.1 In
      each
      Plan Year in which the Plan is a Top-Heavy Plan, each Participant who is a
      Non-Key Employee (except a Participant who is a Non-Key Employee as to the
      Plan
      Year of reference but who was a Key Employee as to any earlier Plan Year) and
      who is actively employed by a Participating Company on the last day of such
      Plan
      Year will receive a

    
      
        
        

      

      
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    total
      minimum allocation of Participating Company contributions (including
      forfeitures) under all plans described in Section 11.2.1.1 and 11.2.1.2 of
      not
      less than three percent (3%) of the Participant’s annual compensation, as
      defined in Treas. Reg. §1.415-2(d). Salary reduction contributions to such plans
      made on behalf of a Participant shall not be deemed to be Participating Company
      contributions for the purpose of this Section 11.3.1.

    11.3.2 The
      percentage set forth in Section 11.3.1 shall be reduced to the percentage
      at which contributions, including forfeitures, are made (or are required to
      be
      made) for a Plan Year for the Key Employee for whom such percentage is the
      highest for that Plan Year. This percentage shall be determined for each Key
      Employee by dividing the contribution for such Key Employee (including salary
      reduction contributions to such plans made on behalf of such Key Employee)
      by
      his compensation, as defined in Treas. Reg. §1.415-2(d), for the Plan Year. All
      defined contribution plans required to be included in an Aggregation Group
      shall
      be treated as one plan for the purpose of this Section; however, this Section
      shall not apply to any plan which is required to be included in an Aggregation
      Group if such plan enables a defined benefit plan in the group to meet the
      requirements of section 401(a)(4) or section 410 of the Code.

    11.3.3 If
      a
      Non-Key Employee described in Section 11.3.1 participates in both a defined
      benefit plan and a defined contribution plan described in Section 11.2.1.1
      and
      11.2.1.2, the Company is not required to provide such Employee with both the
      minimum benefit under the defined benefit plan and the minimum contribution.
      In
      such event, the Non-Key Employee shall receive the minimum benefit provided
      under the defined benefit Top-Heavy Plan.

    
      
        
        

      

      
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    11.4 Change
      in Vesting Schedule.
      Each
      Participant who has an Hour of Service in any Plan Year beginning on or after
      the first day of the first Plan Year for which the Plan is a Top-Heavy Plan,
      shall have a 100 percent nonforfeitable interest in his Account after completing
      three years of Credited Service.

    11.5 Social
      Security.
      The
      Plan, for each Plan Year in which it is a Top-Heavy Plan, must meet the
      requirements of this Article without regard to any Social Security or similar
      contributions or benefits.

    11.6 Adjustment
      to Maximum Allocation Limitation.
      The
      following rules shall apply only with respect to Plan Years beginning before
      January 1, 2000:

    11.6.1 For
      each
      Plan Year in which the Plan is (1) a Super Top-Heavy Plan or (2) a Top-Heavy
      Plan and the Board of Directors does not make the election described in
      Section 11.6.2 and for which a similar election has not been made as to
      another plan in the Aggregation Group, the 1.25 factor in the defined benefit
      and defined contribution fractions described in sections 415(e)(2) and (e)(3)
      of
      the Code shall be reduced to 1.0. The adjustment described in this Section
      11.6.1 shall not apply to any Participant during any period in which the
      Participant earns no additional accrued benefit under any defined benefit plan
      and has no employer contributions, forfeitures, or voluntary contributions
      allocated to his accounts under any defined contribution plan.

    11.6.2 
      If, in
      any Plan Year beginning prior to January 1, 2000 in which the Plan is a
      Top-Heavy Plan but not a Super Top-Heavy Plan, the Aggregation Group described
      in Section 11.2.1.1 and 11.2.1.2 also includes a defined benefit plan, the
      Board
      of Directors may elect to use a factor of 1.25 in computing the denominator
      of
      the defined benefit and defined contribution fractions described in
      sections 415(e)(2) and (e)(3) of the Code. In the event of

    
      
        
        

      

      
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    such
      an
      election, the minimum Company contribution described in Section 11.3.1 for
      each
      Non-Key Employee who is not covered under a defined benefit plan shall be
      increased to four percent (4%), and the minimum Company contribution described
      in Section 11.3.3 for each Non-Key Employee who is covered under a defined
      benefit plan shall be increased to three percent (3%).

    11.7 Modification
      of Top-Heavy Rules.

    11.7.1  Effective
      date.
      This
      Section 11.7 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 on
      and
      after January 1, 2002, and whether the Plan satisfies the minimum benefits
      requirements of section 416(c) of the Code for such years. This Section 11.7
      amends Sections 11.2 and 11.3 of the Plan.

    11.7.2  Determination
      of top-heavy status.

    11.7.2.1
      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.

    
      
        
        

      

      
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    11.7.2.2
      Determination
      of present values and amounts.
      This
      Section 11.7 (b)(ii) 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.

    11.7.2.2.1
      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.”

    11.7.2.2.2
      Employees
      not performing services during year ending on the Determination
      Date.
      The
      accrued benefits and accounts of any individual who has not performed services
      for the Employer during the 1-year period ending on the Determination Date
      shall
      not be taken into account.

    
      
        
        

      

      
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    ARTICLE
      XII

    RIGHTS
      OF
      ALTERNATE PAYEES

     

    12.1  General.
      Except
      as otherwise provided in this Article, an Alternate Payee shall have no rights
      to a Participant’s benefit and shall have no rights under this Plan other than
      those rights specifically granted to the Alternate Payee pursuant to a Qualified
      Domestic Relations Order. Notwithstanding the foregoing, an Alternate Payee
      shall have the right to appeal the denial of a claim for any benefits awarded
      to
      the Alternate Payee pursuant to a Qualified Domestic Relations Order, as
      provided in Section 9.6. Any interest of an Alternate Payee in the Account
      of a
      Participant, other than an interest payable solely upon the Participant’s death
      pursuant to a Qualified Domestic Relations Order that provides that the
      Alternate Payee shall be treated as the Participant’s surviving spouse, shall be
      separately accounted for by the Trustee in the name and for the benefit of
      the
      Alternate Payee.

    12.2  Death
      Benefits.
      Unless
      a Qualified Domestic Relations Order provides otherwise, an Alternate Payee
      shall have the right to designate a beneficiary, in the same manner as provided
      in Section 7.1 with respect to a Participant (except that no spousal consent
      shall be required), who shall receive benefits payable to the Alternate Payee
      which have not been distributed at the time of the Alternate Payee’s death. If
      the Alternate Payee does not designate a beneficiary, or if the beneficiary
      predeceases the Alternate Payee, benefits payable to the Alternate Payee which
      have not been distributed at the time of the Alternate Payee’s death shall be
      paid to the Alternate Payee’s estate.

    
      
        
        

      

      
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    ARTICLE
      XIII

    GENERAL
      PROVISIONS

     

    13.1 Source
      of Benefits.
      The
      provisions of the Plan shall not create any obligation or liability of the
      Company to pay any benefit under the Plan beyond the funds of the Plan available
      for such payment.

    13.2 Alienation
      of Benefits.
      Except
      with respect to qualified domestic relations orders pursuant to Code section
      414(p), or an amount necessary to satisfy a federal tax levy made pursuant
      to
      Code section 6331, payments from and benefits under the Plan are neither
      alienable nor assignable, and are not subject to attachment by creditors of
      or
      through legal processes against any Participant or his beneficiary.

    13.3 Facility
      of Payment.
      If the
      Administrator deems any person incapable of receiving benefits to which he
      is
      entitled by reason of minority, illness, infirmity, or other incapacity, it
      may
      direct that payment be made directly for the benefit of such person or to any
      person selected by the Plan Administrator to disburse it, whose receipt shall
      be
      a complete acquittance therefor. Such payments shall, to the extent thereof,
      discharge all liability of the Administrator, the Company and the party making
      the payment.

    13.4 Interest
      and Dividends on Distributions.
      The
      amount of the distribution shall be determined as of the date provided in
      Article VI, without adjustment for earnings, gains, or losses between such
      date
      and the date of actual payment.

    13.5 Applicable
      Law.
      Except
      as provided by federal law, the Plan shall be governed by and construed in
      accordance with the laws of the State of New Jersey.

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, Yardville National Bank, based on action by its Board of
      Directors, has executed this Plan the 24th
      day of
      January, 2007.

    
      	 	
              YARDVILLE
                NATIONAL BANK

            
	 	 	 
	 	
              By:

            	
              /s/Daniel
                J. O’Donnell

            
	 	 	
              Daniel
                J. O’Donnell

            
	 	
              Title:

            	
              Secretary

            

    

    

     

    

    
      
        
        

      

      
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    Schedule
      A to The

    Yardville
      National Bank Employee Stock Ownership Plan

     

    Participating
      Companies

    

    The
      following companies have been designated by the Board of Directors of Yardville
      National Bank as Participating Companies in the Yardville National Bank Employee
      Stock Ownership Plan (the “Plan”), and have adopted the Plan for the benefit of
      their eligible employees, effective as of the Effective Date of the
      Plan:

     

    1.
      Yardville National Bank

    

    

    

    

    
      
        
        

      

      
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    Schedule
      B to The

    Yardville
      National Bank Employee Stock Ownership Plan

     

    Trust
      Investment Committee Charter

     

    1. Background.
      Eligible employees of Yardville National Bank (the “Company”) and certain of its
      affiliates participate in the Yardville National Bank Employee Stock Ownership
      Plan (the “Plan”). The Plan is subject to the special provisions of the Internal
      Revenue Code, as amended (the “Code”) that apply to plans that are designed
      primarily to invest in employer securities, and to the fiduciary provisions
      of
      Part 4 of Title I of the Employee Retirement Income Security Act of
      1974, as amended (“ERISA”). The Company’s Board of Directors (the “Board”) has
      created the Trust Investment Committee (“TIC”) to perform certain investment
      functions, as enumerated below, with respect to the Plan.

     

    2. Membership.
      The
      Board shall appoint the membership of TIC. Unless otherwise determined pursuant
      to a Board resolution, TIC shall consist of not less than three voting members,
      including a Chairman, who shall also be appointed by the Board. Members may,
      but
      need not be employees of the Company or an affiliate. Members who are employees
      of the Company or an affiliate shall not be separately compensated for their
      service to TIC. Other members shall be compensated by the Company as separately
      agreed to between the Company and such member. Members shall be reimbursed
      for
      reasonable out-of-pocket expenses in accordance with the Company’s regular
      reimbursement policies. Members shall serve on TIC at the pleasure of the Board,
      and may be removed by the Board at any time, with or without cause. The
      Chairman, at his discretion, may invite one or more employees of the Company
      or
      an affiliate who are not voting members to attend meetings of TIC as non-voting
      members of TIC.

     

    3. Meetings.

     

    3.1 Membership
      Meetings.
      TIC
      shall hold regular meetings of its membership, at least annually, to review
      the
      business of the committee and prepare regular reports for the Board. Special
      meetings shall be held as the Chairman may deem appropriate.

     

    3.2 Reports
      to the Board.
      The
      Chairman of TIC shall prepare and deliver an annual written report to the Board,
      or such committee of the Board as the Board may designate. Such report shall
      summarize the business of TIC for the preceding year, evaluate the performance
      of the trustee of the trust established under the Plan and the Plan’s
      independent valuation advisor for employer securities held by the Plan, and
      the
      anticipated short-, medium- and long-term cash needs of the Plan for debt
      amortization and repurchase of employer securities from eligible employees
      who
      separate from service with a nonforfeitable interest in their Plan Accounts.
      The
      Chairman of TIC shall make such additional reports and request additional Board
      or Board committee consideration at such time or times as the Chairman shall
      deem necessary or appropriate.

     

    
      
        
        

      

      
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    3.3 Valuation
      Advisors.
      TIC or
      its members shall conduct such meetings with current or prospective independent
      valuation advisors, and other consultants and advisors as it may deem
      appropriate.

     

    4. Jurisdiction.
      TIC
      shall have the following responsibilities under the Plan and related
      trust:

     

    4.1 The
      appointment, retention and termination of an independent valuation advisor
      to
      provide valuation reports with respect to employer securities held by the
      trust;

     

    4.2 The
      appointment, retention and termination of the trustee;

     

    4.3 To
      vote
      employer securities held by the trust, except to the extent otherwise provided
      in the Plan and trust;

     

    4.4 To
      decide
      whether to tender or exchange employer securities held by the
      trust;

     

    4.5 To
      direct
      the trustee of the trust to purchase employer securities from the Company and
      shareholders, to determine the price at which such purchase shall be closed
      based on the advice of an independent valuation advisor, and, in connection
      with
      each such purchase, to approve the terms and conditions under which the trust
      will finance acquisitions of employer securities; and

     

    4.6 To
      take
      all other actions and make all other decisions assigned to it under the Plan
      and
      trust.

     

    6. Amendment.
      The
      Board shall have the authority to amend this Charter.

     

    Adopted
      this 27th day of January, 1999.

     

    
      	
              [Corporate
                Seal]

            	
              Yardville
                National Bank

            
	 	 	 	 
	
              ATTEST:

            	
              /s/Stephen
                F. Carman

            	
              By:

            	
              /s/Patrick
                M. Ryan

            
	 	
              Stephen
                F. Carman

            	 	
              Patrick
                M. Ryan

            
	 	 	
              Title:

            	
              Chief
                Executive Officer

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