Document:

S-8

EXHIBIT 4.6

		

September 19, 2008 

Dear Employee,  

We are pleased to announce that Tower
Semiconductor completed its merger with Jazz Technologies. As a result, each Jazz option
that you hold, when exercised, will give you the right to purchase 1.8 ordinary shares of
Tower (rather than Jazz shares which are no longer tradable). The number of ordinary Tower
shares to be granted will be calculated as follows: the number of Jazz shares that would
be issued upon exercise of the options prior to the closing of the merger multiplied by
1.8 and rounded down to the nearest whole number of ordinary shares. The exercise price
will be calculated by dividing it by 1.8 and rounding up to the nearest whole cent. The
Jazz options will continue to be governed by Jazz’s share option plan and said plan
shall remain in effect except for the changes specified in this letter.  Vested
options will become execisable after the SEC declares effectiveness of the registration
statement on Form S-8 for the registration of the shares underlying said options. Once
declared effective, the Form S-8 will be posted in Jazz’s intranet site under Human
Resources. 

Tower has chosen Tamir Fishman,
Israel’s leading financial group, as its stock administrator. You may visit their web
site on www.tamirfishman.com to review their offered services and contact them
directly with any specific questions pertaining to your personal option grants. Susan
Blumenkrantz will send you a letter with your personal user name and password for entering
into the Tamir Fishman system upon completing the following forms: 

	 	—	Engagement
Letter - Exhibit #1 

	 	—	W-9
form (if you are subject to the US tax obligations)- Exhibit #2 

	 	—	W-8
form (if you are not subject to any tax obligations in the US)- Exhibit #3 

In addition, attached please find a
web access presentation from Tamir Fishman which will guide you through their website. 

Please review Tower’s insider
trading policy attached hereto and pay particular attention to the prohibited periods
during which insiders, as defined in the policy, may not trade in Tower’s securities. 

We look forward to working together
toward achieving our corporate goals and realizing the joint future success and growth of
both of our companies. 

	 	Sincerely yours,

Dalit Dahan 
 VP Human
Resources 
Tower Semiconductor Ltd.ex10-1.htm

    
      

    

    Exhibit 10.1

     

    
       

       

      AUBURN
SAVINGS BANK, FSB

      

      EMPLOYEE
STOCK OWNERSHIP PLAN AND TRUST

      

      Effective:  January
1, 2008

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      AUBURN
SAVINGS BANK, FSB

      EMPLOYEE
STOCK OWNERSHIP PLAN AND TRUST

       

      Page

       

      
        	
                I.  INTRODUCTION

              	
                1

              
	 	 	 
	
                1.1

              	
                PLAN
      NAME

              	
                1

              
	
                1.2

              	
                EFFECTIVE
      DATE

              	
                1

              
	
                1.3

              	
                PURPOSE
      OF PLAN

              	
                1

              
	 	 	 
	
                II.  ELIGIBILITY

              	
                1

              
	 	 	 
	
                2.1

              	
                INITIAL
      ELIGIBILITY

              	
                1

              
	
                2.2

              	
                BREAK
      IN SERVICE

              	
                1

              
	 	 	 
	
                III.  CONTRIBUTIONS

              	
                2

              
	 	 	 
	
                3.1

              	
                CONTRIBUTION
      AMOUNTS

              	
                2

              
	
                3.2

              	
                FORM
      OF CONTRIBUTIONS

              	
                2

              
	
                3.3

              	
                MINIMUM
      CONTRIBUTIONS

              	
                2

              
	 	 	 
	
                IV.  INVESTMENT
      OF TRUST ASSETS

              	
                2

              
	 	 
	
                4.1

              	
                PURCHASE
      OF EMPLOYER STOCK

              	
                2

              
	
                4.2

              	
                PURCHASE
      PRICE OF EMPLOYER STOCK

              	
                2

              
	
                4.3

              	
                DIVERSIFICATION
      OF INVESTMENTS

              	
                3

              
	
                4.4

              	
                BORROWING
      TO ACQUIRE EMPLOYER STOCK

              	
                3

              
	
                4.5

              	
                RELEASE
      OF SHARES

              	
                5

              
	 	 	 
	
                V.  ACCOUNTING

              	
                5

              
	 	 
	
                5.1

              	
                ACCOUNTING
      FOR TRUST ASSETS

              	
                5

              
	
                5.2

              	
                TREATMENT
      OF ENCUMBERED SHARES

              	
                6

              
	
                5.3

              	
                SEPARATE
      RECORDS OF PARTICIPANTS

              	
                6

              
	
                5.4

              	
                ALLOCATION
      AMONG PARTICIPANT ACCOUNTS

              	
                6

              
	
                5.5

              	
                ANNUAL
      REPORT TO PARTICIPANTS

              	
                7

              
	
                5.6

              	
                VOTING

              	
                7

              
	
                5.7

              	
                LIST
      OF PARTICIPANTS

              	
                8

              
	
                5.8

              	
                MAXIMUM
      ANNUAL ADDITIONS

              	
                8

              
	
                5.9

              	
                ADJUSTMENT
      FOR EXCESSIVE ADDITIONS

              	
                11

              
	 	 	 
	
                VI.  VESTING

              	
                11

              
	 	 
	
                6.1

              	
                VESTING

              	
                11

              
	
                6.2

              	
                FORFEITURES

              	
                12

              
	
                6.3

              	
                NORMAL
      RETIREMENT AGE, ETC

              	
                13

              
	 	 	 
	
                VII.  DISTRIBUTIONS

              	
                13

              
	 	 
	
                7.1

              	
                FORM
      OF DISTRIBUTION

              	
                13

              
	
                7.2

              	
                TIMING
      OF DISTRIBUTION OF BENEFITS

              	
                14

              
	
                7.3

              	
                DEATH
      BENEFITS; DESIGNATION OF BENEFICIARY

              	
                15

              
	
                7.4

              	
                BANK
      CERTIFICATION

              	
                16

              

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

       

      
        Table of
Contents

        (continued)

         

        Page

         

      

      
        	
                7.5

              	
                MINIMUM
      DISTRIBUTION REQUIREMENTS

              	
                16

              
	
                7.6

              	
                TIME
      AND MANNER OF MINIMUM REQUIRED DISTRIBUTIONS

              	
                16

              
	
                7.7

              	
                REQUIRED
      MINIMUM DISTRIBUTIONS DURING

              	 
      
	 
      	
                PARTICIPANT’S
      LIFETIME

              	
                17

              
	
                7.8

              	
                REQUIRED
      MINIMUM DISTRIBUTIONS AFTER PARTICIPANT’S DEATH

              	
                17

              
	
                7.9

              	
                DEFINITIONS

              	
                19

              
	
                7.10

              	
                DISTRIBUTION
      FOR MINOR BENEFICIARY

              	
                20

              
	
                7.11

              	
                LOCATION
      OF PARTICIPANT OR BENEFICIARY UNKNOWN

              	
                20

              
	
                7.12

              	
                LIMITATIONS
      ON BENEFITS AND DISTRIBUTIONS.

              	
                20

              
	
                7.13

              	
                DIRECT
      ROLLOVERS

              	
                20

              
	 	 	 
	
                VIII.  TRUST
      AND TRUSTEES

              	
                21

              
	 	 
	
                8.1

              	
                TRUST
      AND TRUSTEE

              	
                21

              
	
                8.2

              	
                GENERAL
      POWERS

              	
                21

              
	
                8.3

              	
                RESPONSIBILITY
      OF TRUSTEE.

              	
                24

              
	
                8.4

              	
                COMPENSATION
      AND EXPENSES.

              	
                24

              
	
                8.5

              	
                CONTINUATION
      OF POWERS UPON TRUST TERMINATION.

              	
                24

              
	
                8.6

              	
                RESIGNATION.

              	
                24

              
	
                8.7

              	
                REMOVAL
      OF THE TRUSTEE.

              	
                24

              
	
                8.8

              	
                DUTIES
      OF RESIGNING OR REMOVED TRUSTEE AND OF SUCCESSOR TRUSTEE.

              	
                24

              
	
                8.9

              	
                FILLING
      TRUSTEE VACANCY.

              	
                25

              
	
                8.10

              	
                DISAGREEMENT
      AS TO ACTS.

              	
                25

              
	
                8.11

              	
                PERSONS
      DEALING WITH TRUSTEE.

              	
                25

              
	
                8.12

              	
                MULTIPLE
      TRUSTEES.

              	
                25

              
	
                8.13

              	
                DEALINGS
      WITH THE ADMINISTRATIVE COMMITTEE

              	
                25

              
	 	 	 
	
                IX.  DIVIDENDS

              	
                26

              
	 	 
	
                9.1

              	
                PAYMENT
      OF DIVIDENDS.

              	
                26

              
	
                9.2

              	
                ALLOCATION
      OF DIVIDENDS.

              	
                26

              
	 	 	 
	
                X.  PUT
      OPTIONS

              	
                26

              
	 	 
	
                10.1

              	
                APPLICATION

              	
                26

              
	
                10.2

              	
                PUT
      OPTION

              	
                26

              
	 	 	 
	
                XI.  RIGHT
      OF FIRST REFUSAL

              	
                27

              
	 	 
	
                11.1

              	
                APPLICATION

              	
                27

              
	
                11.2

              	
                RIGHT
      OF FIRST REFUSAL

              	
                28

              
	
                11.3

              	
                ENDORSEMENT
      OF CERTIFICATES

              	
                28

              
	 	 	 
	
                XII.  ADMINISTRATIVE
      COMMITTEE

              	
                29

              
	 	 
	
                12.1

              	
                STATUS

              	
                29

              
	
                12.2

              	
                POWERS

              	
                29

              
	
                12.3

              	
                DUTIES

              	
                30

              

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

       

      
        Table of
Contents

        (continued)

         

        Page

         

      

      
        	
                12.4

              	
                EFFECT
      OF INTERPRETATION OR DETERMINATION

              	
                30

              
	
                12.5

              	
                RELIANCE
      ON TABLES, ETC.

              	
                30

              
	
                12.6

              	
                CLAIMS
      AND REVIEW PROCEDURES.

              	
                30

              
	
                12.7

              	
                INDEMNIFICATION

              	
                31

              
	
                12.8

              	
                ANNUAL
      REPORT

              	
                31

              
	
                12.9

              	
                EXPENSES
      OF PLAN

              	
                32

              
	
                12.10

              	
                LIMITATION
      OF LIABILITY

              	
                32

              
	
                12.11

              	
                ACCOUNTS

              	
                32

              
	 	 	 
	
                XIII.  AMENDMENTS
      AND TERMINATION

              	
                33

              
	 	 
	
                13.1

              	
                PLAN
      AMENDMENTS

              	
                33

              
	
                13.2

              	
                TERMINATION
      OF CONTRIBUTIONS

              	
                33

              
	
                13.3

              	
                TERMINATION
      OF PLAN

              	
                33

              
	 	 	 
	
                XIV.  TOP
      HEAVY PROVISIONS

              	
                34

              
	 	 
	
                14.1

              	
                PROVISIONS
      TO APPLY

              	
                34

              
	
                14.2

              	
                MINIMUM
      CONTRIBUTION

              	
                34

              
	
                14.3

              	
                DEFINITIONS

              	
                35

              
	 	 	 
	
                XV.  DEFINITIONS

              	
                37

              
	 	 
	
                XVI.  MISCELLANEOUS

              	
                42

              
	 	 
	
                16.1

              	
                EXCLUSIVE
      BENEFIT RULE

              	
                42

              
	
                16.2

              	
                NON-TERMINABLE
      RIGHTS

              	
                42

              
	
                16.3

              	
                LIMITATION
      OF RIGHTS.

              	
                42

              
	
                16.4

              	
                NON-ALIENABILITY
      OF BENEFITS

              	
                42

              
	
                16.5

              	
                ADEQUACY
      OF DELIVERY

              	
                43

              
	
                16.6

              	
                SERVICE
      WITH ARMED FORCES

              	
                43

              
	
                16.7

              	
                MERGER
      OR CONSOLIDATION

              	
                43

              
	
                16.8

              	
                GOVERNING
      LAW

              	
                43

              

      

      

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

       

      AUBURN
SAVINGS BANK

      EMPLOYEE
STOCK OWNERSHIP PLAN AND TRUST

       

      I.  INTRODUCTION

       

      
        	
                 
      

              	
                1.1

              	
                PLAN
      NAME

              

      

       

      The name
of the Plan is the Auburn Savings Bank, FSB Employee Stock Ownership Plan and
Trust.

       

      
        	
                 
      

              	
                1.2

              	
                EFFECTIVE
      DATE

              

      

       

      The Plan
is effective as of January 1, 2008.

       

      
        	
                 
      

              	
                1.3

              	
                PURPOSE
      OF PLAN

              

      

       

      The Plan
is created for the purpose of providing retirement benefits to Participants and
their beneficiaries in a manner consistent with the requirements of the Code and
Title I of ERISA. The Plan is intended to be, and is hereby designated as, an
employee stock ownership plan within the meaning of Code Section 4975(e)(7),
which shall invest primarily in Employer Stock.

       

      II.  ELIGIBILITY

       

      
        	
                 
      

              	
                2.1

              	
                INITIAL
      ELIGIBILITY

              

      

       

      (a)           An
Eligible Employee who is an Employee at the closing of the Bank’s reorganization
from mutual savings bank to mutual holding company structure (the
“Reorganization Date”) and who has earned one Hour of Service in each of the
three months immediately preceding the Reorganization Date will be a Participant
as of the Reorganization Date. Any other Eligible Employee will become a
Participant in the Plan on the Entry Date coincident with or next following the
date on which he or she first completes a Year of Service and attains age
21.

       

      (b)           No
contributions shall be made or forfeitures allocated with respect to an Employee
who is not, or a Participant who ceases to be, an Eligible Employee. If an
Employee who is not an Eligible Employee becomes an Eligible Employee, such
Employee will become a Participant on the first Entry Date on or after becoming
an Eligible Employee, if he or she has otherwise satisfied the requirements of
this Article II.

       

      
        	
                 
      

              	
                2.2

              	
                BREAK
      IN SERVICE

              

      

       

      Any
Participant who terminates employment but is reemployed by a Participating
Employer before incurring a One Year Break in Service will continue to
participate in the Plan as if such termination had not occurred, effective as of
the date of reemployment. Any Participant who terminates employment but is
reemployed by a Participating Employer after incurring a One Year Break in
Service will be treated as a new hire, and he or she will participate in the
Plan only after again satisfying the requirements of this Article
II.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      III.  CONTRIBUTIONS

       

      
        	
                 
      

              	
                3.1

              	
                CONTRIBUTION
      AMOUNTS

              

      

       

      Not later
than the time prescribed by law for filing its Federal income tax return
(including extensions thereof) for its current taxable year and each succeeding
taxable year, the Bank will make contributions to the Trust in such amounts as
may be determined by the Board of Directors, provided, however, that the
aggregate contribution of the Bank for any year shall not exceed the maximum
amount which would constitute an allowable deduction to the Bank for such year
under Code Section 404(a). A Participant shall neither be required nor permitted
to make contributions to the Plan and Trust.

       

      
        	
                 
      

              	
                3.2

              	
                FORM
      OF CONTRIBUTIONS

              

      

       

      Bank
contributions will be paid in cash or other property, as the Board of Directors
may, from time to time, determine; provided however that the Bank may not make
contributions of Employer Stock to the extent necessary to satisfy a monetary
obligation in violation of U.S. Department of Labor Interpretive Bulletin 94-3,
see 29 C.F.R.
2509.94-3, unless the contribution otherwise satisfies the requirements for an
exemption from the ERISA prohibited transaction rules.

       

      
        	
                 
      

              	
                3.3

              	
                MINIMUM
      CONTRIBUTIONS

              

      

       

      The
Bank’s annual contribution must be sufficient to ensure that Trust does not
default on the repayment by the Trust of indebtedness in accordance with the
terms of such indebtedness which may be incurred from time to time for the
purpose of the acquisition of Employer Stock.

       

      IV.  INVESTMENT
OF TRUST ASSETS

       

      
        	
                 
      

              	
                4.1

              	
                PURCHASE
      OF EMPLOYER STOCK

              

      

       

      All cash
contributions to the Trust made by the Bank and any other cash received by the
Trust (excluding dividends received by the Trust on Employer Stock which are
directed by the Bank to be distributed to Plan Participants pursuant to Section
9.1), will first be applied to outstanding current obligations of the Trust, and
any excess will be used, at the discretion of the Trustee, to repay obligations
of the Trust, to buy Employer Stock from holders of outstanding stock or newly
issued or treasury stock from the Bank, or the Trustee may invest such funds of
the Trust in savings accounts, certificates of deposit, short-term commercial
paper, stocks, bonds, insurance policies, or other investments deemed to be
desirable for the Trust, or such funds may be held temporarily in
cash.

       

      
        	
                 
      

              	
                4.2

              	
                PURCHASE
      PRICE OF EMPLOYER STOCK

              

      

       

      All
purchases of Employer Stock by the Trust will be made at a price, or at prices,
which, in the judgment of the Trustee, do not exceed the fair market value of
such Employer Stock. The fair market value of Employer Stock shall be the price
at which such stock trades on an established securities market, or if such stock
is not readily tradable on an established securities market, the fair market
value of Employer Stock shall be determined by an independent appraiser as
defined in Code Section 401(a)(28). In making such determination, the appraiser
shall consider the following criteria:

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      (a)           Any
current and historical practices which have been consistently and uniformly
utilized to value Employer Stock in sales transactions between the Bank and the
stockholders, or among and between stockholders.

       

      (b)           Any
restrictions or limitations imposed upon the sale or transfer of Employer Stock
which establish or stipulate the price at which the Bank may or must purchase
such stock under the provisions of its charter of any or written agreements,
provided the same or similar restrictions are applicable to substantially all of
the outstanding Employer Stock and are complied with uniformly and
consistently.

       

      (c)           Such
other information concerning the Bank and its condition and prospects, financial
and otherwise, generally used in the determination of the fair market value of
corporate stock of comparable public or private companies engaged in the same or
similar industries, by independent investment analysts nationally recognized as
having expertise in rendering such evaluations.

       

      
        	
                 
      

              	
                4.3

              	
                DIVERSIFICATION
      OF INVESTMENTS

              

      

       

      (a)           Each
Participant in the Plan who has attained age fifty-five (55) and has completed
at least ten (10) years of participation in the Plan shall be permitted to
elect, as to not more than twenty-five percent (25%) (reduced by amounts
previously diversified) of his or her Employer Stock Account, to have Employer
Stock in such amount liquated from his or her Employer Stock Account and
transferred to his or her Other Investment Account. This election may be made
within the period of ninety (90) days following the end of each Plan Year during
the six (6) Plan Year period beginning with the first Plan Year in which the
Participant became eligible to make the election. In the case of the last year
to which an election applies, fifty percent (50%) shall be substituted for
twenty-five percent (25%).

       

      (b)           For
the purpose of facilitating elective diversification hereunder, the Trustee may
make available under the Participant’s Other Investment Account at least three
investment vehicle alternatives to the investment of assets of the Trust in
qualified employer securities that comply with the requirements of Code Section
401(a)(28) and any applicable Regulation.

       

      (c)           The
Trustee shall comply with any diversification election under this Section 4.3
within ninety (90) days following the ninety (90) day election period by (i)
substituting other investment assets for the amount of qualified employer
securities as to which the election is made, or (ii) distributing to the
Participant an amount equal to the amount for which diversification was
elected.

       

      
        	
                 
      

              	
                4.4

              	
                BORROWING
      TO ACQUIRE EMPLOYER STOCK

              

      

       

      The
Trustee may borrow funds from any lender for the purpose of purchasing Employer
Stock, and may enter into contracts for the purchase of Employer Stock pursuant
to which the purchase price is paid in installments. Any such loan or contract
must be primarily for the benefit of Participants and their Beneficiaries, and
shall comply with the following terms and conditions:

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (a)           The
interest rate respecting such loan shall not exceed a reasonable rate of
interest. The Trustee shall consider all relevant factors in determining a
reasonable rate of interest, including the amount and duration of the loan or
contract, the security and guarantee (if any) involved, the credit standing of
the Trust and the Bank (if and to the extent that the Bank acts as guarantor),
and the interest rate prevailing for comparable loans. Upon due consideration of
the foregoing factors, a variable interest rate may be reasonable.

       

      (b)           At
the time that such loan is made or contract entered into, the interest rate and
the price of securities to be acquired should not be such that Plan assets might
be dissipated.

       

      (c)           The
terms of such loan or contract, whether or not between independent parties, must
be at such time at least as favorable to the Trust as the terms of a comparable
loan or contract resulting from arm’s-length negotiations between independent
parties.

       

      (d)           The
proceeds of such loan must be used within a reasonable time after their receipt
by the Trust only to acquire Employer Stock, to repay such loan, or to repay a
prior loan to the Trust.

       

      (e)           Such
loan must be without recourse against the Trust. The only assets of the Trust
that may be given as collateral on such loan are shares of Employer Stock
acquired therewith. No person entitled to payment under such loan shall have any
right to assets of the Trust other than collateral given for such loan, cash
contributions of the Bank made to meet the obligations of the Trust under such
loan, and earnings attributable to such collateral and the investment of such
contributions. The payments made with respect to such loan by the Trust during a
Plan Year must not exceed an amount equal to the sum of such contributions and
earnings received during or prior to the year less such payments in prior years.
Such contributions and earnings must be accounted for separately on the books of
account of the Trust, until the loan is repaid.

       

      (f)           In
the event of default on such loan, the value of Plan assets transferred in
satisfaction of the loan must not exceed the amount of default.

       

      (g)           Shares
of Employer Stock used as collateral for such loan shall be released from the
encumbrance-thereof, in accordance with the provisions of Section
4.5.

       

      (h)           Such
loan shall be for a specific term, and not payable at the demand of any person
(except in the case of default).

       

      (i)           Except
as otherwise provided under the terms of this Plan and Trust, or as otherwise
required by applicable law, no Employer Stock acquired with the proceeds of such
loan shall be subject to a put, call or other option, or buy-sell or similar
arrangement while held by and when distributed from the Trust, whether or not
the Trust is then an employee stock ownership plan as described in Code Section
4975(e)(7).

       

      
        	
                 
      

              	
                4.5

              	
                RELEASE
      OF SHARES

              

      

       

      All
shares of Employer Stock acquired by the Trust and pledged as collateral on a
loan described in Section 4.4 shall be credited to the Suspense Account and
shall be released as follows:

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (a)           For
each Plan Year during the duration of the loan, the number of shares of Employer
Stock released shall equal the original number of encumbered shares multiplied
by a fraction in which the numerator is the amount of principal paid to the
lender by the Trust for the year, and the denominator is the original principal
amount outstanding at the commencement of the loan. The foregoing allocation
method shall apply only if the loan provides for annual payments of principal
and interest at a cumulative rate that is not less rapid at any time than level
annual payments of such amounts for ten (10) years. Further shares released from
encumbrance shall be determined solely with reference to principal payments and
interest included in any payments shall be disregarded only to the extent that
the interest would be determined to be interest under standard loan amortization
tables. If at any time, by reason of a renewal, extension, or refinancing, the
sum of the expired duration of the exempt loan, the renewal period, the
extension period, and the duration of a new exempt loan exceeds ten (10) years,
or if, at any time, the other terms and conditions of this Section 4.5(a) are
not met, then from such time shares of Employer Stock shall be released pursuant
to Section 4.5(b).

       

      (b)           If
the allocation method set forth in Section 4.5(a) is not applicable, then shares
of Employer Stock shall be released as follows: For each Plan Year during the
duration of the loan, the number of shares of Employer Stock released shall
equal the number of encumbered shares held immediately before release by a
fraction. The numerator of the fraction is the amount of principal and interest
paid to the lender by the Trust for the year, and the denominator of the
fraction is the sum of the numerator plus the principal and interest to be paid
for all future years. For purposes of the foregoing determination, the number of
future years under the loan must be definitely ascertainable, and shall be
determined without taking into account any possible extensions or renewal
periods. If the interest rate under the loan is variable, the interest to be
paid in future years shall be computed by using the interest rate applicable as
of the end of the Plan Year.

       

      (c)           To
the extent of the foregoing release from encumbrance pursuant to Sections 4.5(a)
or (b), shares shall be withdrawn from the Suspense Account and shall be
allocated for each Plan Year as provided in Section 5.4.

       

      V.  ACCOUNTING

       

      
        	
                 
      

              	
                5.1

              	
                ACCOUNTING
      FOR TRUST ASSETS

              

      

       

      The
Trustee shall keep accurate and detailed accounts of all investments, receipts
and disbursements and other transactions under the Trust. As of the last day of
each Plan Year, the Trustee shall make a determination of the current fair
market value of all Trust assets. In so doing, the Trustee shall:

       

      
        	 
      	
                (i)

              	
                Credit
      to the Trust all income of the Trust for such year (including dividends on
      Employer Stock);

              
	 	 	 
	 
      	
                (ii)

              	
                Charge
      to the Trust all losses and expenses of the Trust for such
      year;

              
	 	 	 
	 
      	
                (iii)

              	
                Credit
      to the Trust all contributions of the Bank (whether in cash or in kind);
      and

              
	 	 	 
	 
      	
                (iv)

              	
                Make
      a determination as to the current fair market value of all assets of the
      Trust, including Employer Stock in accordance with Section
      4.2.

              

      

      
      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                5.2

              	
                TREATMENT
      OF ENCUMBERED SHARES

              

      

       

      In
computing the fair market value of all assets held in the Trust, shares of
encumbered Employer Stock (i.e., those shares standing as collateral for a loan
or loans described at Section 4.4 above) shall be disregarded.

       

      
        	
                 
      

              	
                5.3

              	
                SEPARATE
      RECORDS OF PARTICIPANTS

              

      

       

      The
Trustee shall keep accurate accounts of the respective share of each Participant
in the Trust assets. Each account shall separately state the number of shares of
Employer Stock allocated to the Participants’ accounts each year under Section
5.4. The share of each Participant in the Trust assets as of any date of
determination shall be the fair market value of such assets as of the preceding
Valuation Date.

       

      
        	
                 
      

              	
                5.4

              	
                ALLOCATION
      AMONG PARTICIPANT ACCOUNTS

              

      

       

      As of
each Anniversary Date, the Trustee shall allocate the Banks contribution under
Section 3.1 to the Account of each Participant who has completed 1,000 Hours of
Service during the Plan Year in the same proportion that each such Participant’s
Compensation for such year bears to the aggregate of the Compensation of all
Participants for such year.

       

      (a)           The
Account of each Participant will be credited as of each Anniversary Date with
its allocable share(s) of Employer Stock (including fractional shares rounded to
the nearest one-hundredth of a share) purchased and paid for by the Plan or
contributed in kind by the Bank and with stock dividends on Employer Stock held
in such Participant’s Account. Employer Stock acquired by the Plan with the
proceeds of a loan described in Section 4.4 above will only be allocated to each
Participant’s Account upon release from encumbrance pursuant to Section 4.5. The
Employer Stock received by the Trust during a Plan Year with respect to a
contribution by the Bank for the preceding Plan Year shall be allocated to the
accounts of Participants as of the Anniversary Date at the end of such preceding
Plan Year. Each Participant’s Other Contributions Account will be credited as of
each Anniversary Date with his or her allocable share of the Bank’s contribution
that does not consist of Employer Stock, and shall be debited with payments made
to pay for Employer Stock, or to repay a loan described in Section
4.4.

       

      (b)           Net
income (or loss) of the Trust will be determined annually as of each Anniversary
Date. A share thereof will be allocated to each Participant’s Account in the
ratio in which the balance of his or her Account on the preceding Anniversary
Date bears to the sum of the balances for the Accounts of all Participants on
that date. The net income (or loss) includes the increase (or decrease) in the
fair market value of assets of the Trust (other than Employer Stock), interest,
dividends, other income and expenses attributable to assets in the Accounts
(other than Employer Stock) since the preceding Anniversary Date. Net income (or
loss) does not include the interest paid under any installment contract for the
purchase of Employer Stock by the Trust or on any loan used by the Trust to
purchase Employer Stock, nor does it include income received by the Trust with
respect to Employer Stock acquired with the proceeds of a loan described in
Section 4.4 to the extent such income is used to repay the loan.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      (c)           Shares
of Employer Stock released from encumbrance as a result of dividends paid on
Employer Stock will be allocated to each Participant’s Account in the ratio of
the balance in his or her account on the preceding Anniversary Date to the sum
of the balances for the Accounts of all Participants on that date.

       

      (d)           Despite
the foregoing, any diversification of investments made pursuant to Section 4.3
shall be deemed an earmarked investment made for such Participant’s benefit.
Accordingly, all interest and other earnings attributable to such earmarked
investments shall be allocated and credited exclusively to the Other Investment
Account of the Participant who has made such election. At the time of electing
such diversification of investments, the electing Participant’s Employer Stock
Account shall be reduced by the number of shares of Employer Stock which are
equal in value as of the last Valuation Date to the amount of the diversified
investments or the amount distributed to the Participant pursuant to Section
4.3.

       

      (e)           The
Bank shall establish accounting procedures for the purpose of making the
allocations, valuations and adjustments to Participants’ Accounts provided for
in this Section 5.4.

       

      (f)           In
the case of a Participant who is entitled to have credited to his or her Account
a portion of the Bank’s contribution for a Plan Year but whose employment is
terminated after the close of such year and before actual contributions have
been made to the Trust, the allocations with respect to such contributions shall
be made as though such Employee’s employment had not terminated.

       

      
        	
                 
      

              	
                5.5

              	
                ANNUAL
      REPORT TO PARTICIPANTS

              

      

       

      As soon
as practicable after each Anniversary Date, the Trustee shall prepare a written
statement for distribution to each Participant reflecting the number of shares
of Employer Stock allocated to such Participant’s Account as of the Anniversary
Date preceding the most recent Anniversary Date, the additional number of shares
of Employer Stock allocated to him or her for the Plan Year ending on the most
recent Anniversary Date, and the aggregate number of shares of Employer Stock
allocated to date to his or her Account. The written statement shall also
indicate the dollar value of the Participant’s shares of Employer Stock, based
upon the most recent revaluation of the assets of the Trust.

       

      
        	
                 
      

              	
                5.6

              	
                VOTING

              

      

       

      The
Trustee shall vote all shares of Employer Stock held in the Trust in accordance
with the following provisions:

       

      (a)           Shares
of Employer Stock which have been allocated to Participants’ Accounts shall be
voted by the Trustee in accordance with the Participants’ written
instructions.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      (b)           Shares
of Employer Stock which have been allocated to Participants’ Accounts but for
which no written instructions have been received by the Trustee regarding voting
shall be voted by the Trustee in a manner calculated to most accurately reflect
the instructions the Trustee has received from Participants regarding voting
shares of allocated Employer Stock. Shares of unallocated Employer Stock shall
also be voted by the Trustee in a manner calculated to most accurately reflect
the instructions the Trustee has received from Participants regarding voting
shares of allocated Employer Stock. Despite the forgoing, all shares of Employer
Stock which have been allocated to Participants’ Accounts and for which the
Trustee has not timely received written instructions regarding voting and all
unallocated shares of Employer Stock must be voted by the Trustee in a manner
determined by the Trustee to be solely in the best interests of the Participants
and Beneficiaries.

       

      (c)           In
the event no shares of Employer Stock have been allocated to Participants’
Accounts at the time Employer Stock is to be voted, each Participant shall be
deemed to have one share of Employer Stock allocated to his Accounts for the
sole purpose of providing the Trustee with voting instructions.

       

      (d)           Whenever
voting rights are to be exercised under this Section 5.6, the Bank, the
Administrative Committee, and the Trustee shall see that all Participants and
Beneficiaries are provided with the same notices and other materials as are
provided to other holders of the Employer Stock, and are provided with adequate
opportunity to deliver their instructions to the Trustee regarding the voting of
Employer Stock allocated to their Accounts or deemed allocated to their Accounts
for purposes of voting. The instructions of the Participants with respect to the
voting of shares of Employer Stock shall be confidential.

       

      (e)           In
the event of a tender offer, Employer Stock shall be tendered by the Trustee in
the same manner set forth in subsection (a) through (d) above regarding the
voting of Employer Stock.

       

      
        	
                 
      

              	
                5.7

              	
                LIST
      OF PARTICIPANTS

              

      

       

      On or
about each Anniversary Date, the Bank shall deliver to the Trustee a list of all
Eligible Employees to whom Compensation was paid or payable for such year,
together with a statement of the amount of such Compensation.

       

      
        	
                 
      

              	
                5.8

              	
                MAXIMUM
      ANNUAL ADDITIONS

              

      

       

      Despite
the foregoing, the maximum annual additions credited to a Participant’s accounts
for any limitation year shall equal the lesser of (i) $40,000, as adjusted for
increases in the cost of living under Code Section 415(c)(3), or (ii) one
hundred percent (100%) of the Participant’s 415 Compensation for such limitation
year; provided, however, that the 415 Compensation percentage limitation
referred to in clause (ii) shall not apply to any contribution for medical
benefits (within the meaning of Code Section 419A(f)(2)) after separation from
service which is otherwise treated as an annual addition, or any amount
otherwise treated as an annual addition under Code Section
415(l)(1).

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

      (a)           For
purposes of applying the limitations of Code Section 415, “annual additions”
means the sum credited to a Participant’s accounts for any limitation year
of:

       

      
        	 
      	
                (i)

              	
                Employer
      contributions,

              
	 	 	 
	 
      	
                (ii)

              	
                Employee
      contributions,

              
	 	 	 
	 
      	
                (iii)

              	
                Forfeitures,

              
	 	 	 
	 
      	
                (iv)

              	
                Amounts
      allocated to an individual medical account, as defined in Code Section
      415(l)(2) which is part of a pension or annuity plan maintained by the
      Bank or any Affiliated Employer, and

              
	 	 	 
	 
      	
                (v)

              	
                Amounts
      derived from contributions paid or accrued, which are attributable to
      post-retirement medical benefits allocated to the separate account of a
      key employee (as defined in Code Section 419A(d)(3)) under a welfare
      benefit plan (as defined in Code Section 419(e)) maintained by the Bank or
      any Affiliated Employer.

              

      

       

      (b)           For
purposes of applying the limitations of Code Section 415, the transfer of funds
from one qualified plan to another is not an annual addition. In addition, the
following are not employee contributions: (i) rollover contributions (as defined
in Code Sections 402(a)(5), 402(c)(1), 403(a)(4), 403(b)(8) and 408(d)(3), (ii)
repayments of loans made to a Participant from the Plan, (iii) repayments of
distributions received by an Employee pursuant to Code Section 411(a)(7)(B)
(cash-outs), (iv) repayments of distributions received by an employee pursuant
to Code Section 411(a)(3)(D) (mandatory contributions), and (v) Employee
contributions to a simplified employee pension excludable from gross income
under Code Section 408(k)(6).

       

      (c)           For
purposes of applying the limitations of Code Section 415, 415 Compensation shall
include the Participant’s wages, salaries, fees for professional services and
other amounts for personal services actually rendered in the course of
employment with an employer maintaining the Plan (including, but not limited to,
commissions paid salesmen, compensation for services on the basis of a
percentage of profits, commissions on insurance premiums, tips and bonuses and
in the case of a Participant who is an employee within the meaning of Code
Section 401(c)(1) and the accompanying Regulation, the Participant’s earned
income (as described in Code Section 401(c)(2) and the accompanying Regulation)
paid during the limitation year and including any elective deferrals (as defined
in Code Section 402(g)(3)), and any amount which is contributed or deferred by
the Bank or any Bank or any Affiliated Employer at the election of the employee
and which is not currently includible in the gross income of the Employee by
reason of Code Sections 125, 132(f) or 457.

       

      (d)           “415
Compensation” shall exclude (i) any distributions from a plan of deferred
compensation regardless of whether such amounts are includable in the gross
income of the Employee when distributed except any amounts received by an
Employee pursuant to an unfunded non-qualified plan to the extent such amounts
are includable in the gross income of the Employee; (ii) amounts realized from
the exercise of a non-qualified stock option or when restricted stock (or
property) held by an Employee either becomes freely transferable or is no longer
subject to a substantial risk of forfeiture; (iii) amounts realized from the
sale, exchange or other disposition of stock acquired under a qualified stock
option; and (iv) other amounts which receive special tax benefits, such premiums
for group term life insurance (but only to the extent that the premiums are not
includable in the gross income of the Employee), or contributions made by the
Bank any Affiliated Employer (whether or not under a salary reduction agreement)
towards the purchase of any annuity contract described in Code Section 403(b)
(whether or not the contributions are excludable from the gross income of the
Employee).

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      (e)           For
purposes of applying the limitations of Code Section 415, the limitation year
shall be the Calendar Year.

       

      (f)           The
dollar limitation under Code Section 415(b)(1)(A) stated in this Section 5.8
shall be adjusted annually as provided in Code Section 415(d) pursuant to the
Regulations. The adjusted limitation is effective as of January 1 of each
calendar year and is applicable to limitation years ending with or within those
calendar years.

       

      (g)           For
the purpose of this Section 5.8, all qualified defined benefit plans (whether or
not terminated) every maintained by the Bank shall be treated as one defined
benefit plan, and all qualified defined contribution plans (whether or not
terminated) every maintained by the Bank shall be treated as one defined
contribution plan.

       

      (h)           For
the purpose of this Section 5.8, if the Bank is a member of a controlled group
of corporations, trades or businesses under common control (as defined by Code
Section 1563(a) or Code Section 414(b) and Code Section 414(c) as modified by
Code Section 415(h)), is a member of an affiliated service group (as defined by
Code Section 414(m)), or is a member of a group of entities required to be
aggregated pursuant to Regulations under Code Section 414(o), all Employees of
such employers shall be considered to be employed by a single
employer.

       

      (i)           If
a Participant participates in more than one defined contribution plan maintained
by the Bank or any Affiliated Employer which have different Anniversary Dates,
the maximum annual additions under the Plan shall equal the maximum annual
additions for the limitation year minus any annual additions previously credited
to such Participant’s accounts during the limitation year.

       

      (j)           If
a Participant participates in both a defined contribution plan subject to Code
Section 412 and a defined contribution plan not subject to Code Section 412
maintained by the Bank or any Affiliated Employer which have the same
Anniversary Date, annual additions will be credited to the Participant’s
accounts under the defined contribution plan subject to Code Section 412 prior
to crediting annual additions to the Participant’s accounts under the defined
contribution plan not subject to Code Section 412.

       

      (k)           If
a Participant participates in more than one defined contribution plan not
subject to Code Section 412 maintained by the Bank or any Affiliated Employer
which have the same Anniversary Date, the maximum annual additions under this
Plan shall equal the product of (A) the maximum annual additions for the
limitation year minus any annual additions previously credited multiplied by (B)
a fraction (i) the numerator of which is the annual additions that would be
credited to such Participant’s accounts under this Plan without regard to the
limitations of Code Section 415 and (ii) the denominator of which is such annual
additions for all plans described in this Section 5.8.

       

      (l)           Despite
any contrary provision of this Section 5.8, the limitations, adjustments and
other requirements prescribed in this Section 5.8 shall at all times comply with
the provisions of Code Section 415 and the Regulation thereunder, the terms of
which are specifically incorporated herein by reference.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                5.9

              	
                ADJUSTMENT
      FOR EXCESSIVE ADDITIONS

              

      

       

      If, as a
result of the allocation of Forfeitures, a reasonable error in estimating a
Participant’s Compensation or other facts and circumstances to which Regulation
Section 1.415-6(b)(6) shall be applicable, the annual additions under the Plan
would cause the maximum annual additions to be exceeded for any Participant, the
Administrative Committee shall (i) return any voluntary Employee contributions
credited for the limitation year to the extent that the return would reduce the
excess amount in the Participant’s Account, (ii) hold any excess amount
remaining after the return of any voluntary Employee contributions in a Code
Section 415 suspense account (as defined in Section 5.9(b)), (iii) allocate and
reallocate the Code Section 415 suspense account in the next limitation year
(and succeeding limitation years if necessary) to all Participants in the Plan
before any employer or employee contributions which would constitute annual
additions are made to the Plan for such limitation year, and (iv) reduce
contributions to the Plan for such limitation year by the amount of the Code
Section 415 suspense account allocated and reallocated during such limitation
year.

       

      (a)           The
excess amount for any Participant for a limitation year shall mean the excess,
if any, of (i) the annual additions that would be credited to his or her account
under the terms of the Plan without regard to the limitations of Code Section
415 over (ii) the maximum annual additions determined pursuant to Section
5.8.

       

      (b)           For
purposes of this Section 5.9, “Code Section 415 suspense account” means an
unallocated account equal to the sum of excess amounts for all Participants in
the Plan during the limitation year.  The Code Section 415 suspense
account shall not share in any earnings or losses of the Fund.

       

      (c)           The
Plan may not distribute excess amounts, other than voluntary Employee
contributions, to Participants or Former Participants.

       

      VI.  VESTING

       

      
        	
                 
      

              	
                6.1

              	
                VESTING

              

      

       

      In the
event of termination or severance of a Participant’s employment, the Trustee
shall determine the vested portion of the Participant’s Account as of the
immediately preceding Valuation Date in accordance with the following
schedule:

       

      
        	
                YEARS OF
      SERVICE

              	
                VESTED
      PORTION

              
	 	 
	
                Less
      than One Year

              	
                0%

              
	 	 
	
                One
      Year

              	
                20%

              
	 	 
	
                Two
      Years

              	
                40%

              
	 	 
	
                Three
      Years

              	
                60%

              
	 	 
	
                Four
      Years

              	
                80%

              
	 	 
	
                Five
      Years

              	
                100%

              

      

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                6.2

              	
                FORFEITURES

              

      

       

      Any
amount not vested under the foregoing vesting schedule shall become a
Forfeiture. As of each Anniversary Date, any amounts which became Forfeitures
since the last Anniversary Date shall first be made available to reinstate
previously forfeited account balances of Former Participants, if any, in
accordance with this Section 6.2. The remaining Forfeitures, if any, shall be
added to the Bank’s discretionary contribution pursuant to Section 3.1 and for
the Plan Year in which such Forfeitures occur allocated among the Accounts of
Participants in the same manner as the Bank’s discretionary contribution for the
current year. Despite the forgoing, if the allocation of Forfeitures causes the
annual addition (as defined in Section 5.8) to any Participant’s Account to
exceed the amount allowable by the Code, the excess shall be reallocated in
accordance with Section 5.9, except that Participants who perform less than a
Year of Service during any Plan Year or are not employed on the last day of the
Plan Year shall not share in Forfeitures for that year.

       

      (a)           The
computation of a Participant’s non-forfeitable percentage of his interest in the
Plan shall not be reduced as the result of any direct or indirect amendment to
this Plan. A Participant with at least three (3) Years of Service as of the
election period may elect to have his or her non-forfeitable percentage computed
under the Plan without regard to such new vesting schedule.

       

      (b)           For
purposes of applying this schedule to any Participant who has incurred five (5)
consecutive One-Year Breaks in Service, Years of Service after such period shall
not be taken into account for determining the non-forfeitable percentage of his
or her Account accrued before such period began.

       

      (c)           If
any former Participant shall be reemployed by the Bank before a One-Year Break
in Service occurs, he shall continue to participate in the Plan in the same
manner as if such termination had not occurred.

       

      (d)           If
any former Participant shall be reemployed by the Bank before five (5)
consecutive One-Year Breaks in Service, and such former Participant had received
a distribution of his or her entire vested interest prior to his or her
reemployment, his or her forfeited Account shall be reinstated only if he or she
repays the full amount distributed before the earlier of five (5) years after
the first date on which the Participant is subsequently reemployed by the Bank
or the close of the first period of five (5) consecutive One-Year Breaks in
Service commencing after distribution. If a distribution occurs for any reason
other than a separation from service, the time for repayment may not end earlier
than five (5) years after the date of separation. If the former Participant does
repay the full amount distributed to him or her, the undistributed portion of
the Participant’s Account must be restored in full, unadjusted by any gains or
losses occurring subsequent to the Anniversary Date or other valuation date
first preceding his or her termination.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      (e)           If
any Former Participant is reemployed after a One-Year Break in Service, Years of
Service shall include Years of Service prior to his or her One-Year Break in
Service subject to the following rules:

       

      
        	 
      	
                (i)

              	
                If
      a Former Participant has a One- Year Break in Service, his or her
      pre-Break and post-Break Service shall be used for computing Years of
      Service for vesting purposes only after he or she has been employed for
      one (1) Year of Service following the date of his reemployment with the
      Bank;

              
	 	 	 
	 
      	
                (ii)

              	
                Any
      Former Participant who under the Plan does not have a non- forfeitable
      right to any interest in the Plan resulting from Bank contributions shall
      lose credits otherwise allowable under clause (i) if his or her
      consecutive One-Year Breaks in Service equal or exceed the greater of (A)
      five (5) or (B) the aggregate number of his or her pre-Break Years of
      Service; and

              
	 	 	 
	 
      	
                (iii)

              	
                After
      five (5) consecutive One-Year Breaks in Service, a Former Participant’s
      vested Account balance attributable to pre-Break Service shall not be
      increased as a result of post-Break
Service.

              

      

      
      

       

      
        	
                 
      

              	
                6.3

              	
                NORMAL
      RETIREMENT AGE, ETC.

              

      

       

      Despite
the provisions of this Article VI, if a Participant’s services are terminated
(i) upon or after he or she attains age 65, or (ii) on account of disability
determined by competent medical authority acceptable to the Administrative
Committee, or (iii) by his or her death, then the forfeiture provisions
contained in Section 6.2 shall not apply.

       

      VII.  DISTRIBUTIONS

       

      
        	
                 
      

              	
                7.1

              	
                FORM
      OF DISTRIBUTION

              

      

       

      Distribution
of benefits will be made entirely in whole shares of Employer Stock except that
the value of any fractional share and any portion of the Participant’s Other
Investment Account which has been diversified in accordance with Section 4.3
will be paid in cash. Any non-diversified balance in a Participant’s account not
invested in Employer Stock will be used to acquire for distribution to such
Participant the maximum number of whole shares of Employer Stock at the then
fair market value, and any unexpended balance will be distributed to such
Participant in cash. In lieu of distributing Employer Stock to a Participant, at
the direction of the Bank, the Trustee may distribute all or a portion of a
Participant’s benefit in cash. Prior to commencing such a cash distribution, the
Trustee shall notify the Participant, or his Beneficiary, in writing that he has
the right to demand in writing that his benefits be distributed in the form of
Employer Stock. Such right shall expire thirty (30) days after the receipt of
such notice by the Participant or his Beneficiary.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                7.2

              	
                TIMING
      OF DISTRIBUTION OF BENEFITS

              

      

       

      Distributions
of a Participant’s account balance (whether in the form of Employer Stock and/or
cash) shall be made as follows:

       

      (a)           If
the Participant’s vested interest in the Plan does not exceed One Thousand
Dollars ($1,000), the entire vested benefit shall be distributed to the
Participant in a lump sum payment prior to the Second Anniversary Date following
his or her termination of employment. The determination of whether the
Participant’s vested interest in the Plan exceeds One Thousand Dollars ($1,000)
shall be made by including that portion of his or her Account that is
attributable to rollover contributions (and earnings allocable thereto) within
the meaning of Code Sections 402(c), 403(a)(4), 403(b)(8), 408(d)(3)(A)(ii), and
457(e)(16).

       

      (b)           If
the Participant’s vested interest in the Plan exceeds One Thousand Dollars
($1,000) but is less than Five Thousand Dollars ($5,000), then, with the consent
of the Participant, the entire vested benefit shall be distributed to the
Participant in a lump sum payment prior to the Second Anniversary Date following
his or her termination of employment. If a Participant does not consent to such
a distribution, then his or her vested interest shall be distributed to the
Participant in a lump sum payment prior to the Anniversary Date ending the Plan
Year in which the Participant attains the Normal Retirement Age.

       

      (c)           If
the Participant’s vested interest in the Plan is Five Thousand Dollars ($5,000)
or more, then, with the consent of the Participant, the entire vested benefit
shall be distributed as follows:

       

      
        	 
      	
                (i)

              	
                If
      the Participant terminates employment after attainment of age 65, or
      because of Disability or death, payments will commence no later than the
      Anniversary Date ending the Plan Year which follows the Plan Year in which
      the Participant’s employment was terminated. Payments will be made in
      substantially equal annual installments over a five-year
      period.

              
	 	 	 
	 
      	
                (ii)

              	
                If
      the Participant terminates employment for any other reason, payments will
      commence no later than the Anniversary Date ending the fifth Plan Year
      following the Plan Year in which the Participant’s employment was
      terminated. Payments will be made in substantially equal annual
      installments over a five-year
period.

              

      

       

      (d)           If
a Participant does not consent to the distributions as provided in Section
7.2(c) above, then the Participant’s vested interest in the Plan shall be
distributed in five substantially equal annual installments commencing no later
than the Anniversary Date ending the Plan Year following the Plan Year in which
the Participant attains the Normal Retirement Age.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      (e)           Despite
the foregoing:

       

      
        	 
      	
                (i)

              	
                If
      the Participant’s vested interest in the Plan is more than Nine Hundred
      Thirty Five Thousand Dollars ($935,000) (in 2008), the five-year
      distribution period referred to in Section 7.2(c) shall be extended one
      additional year (but not more than five additional years) for each One
      Hundred Eighty Five Thousand Dollars ($185,000) or fraction thereof by
      which his or her vested interest exceeds Nine Hundred Thirty Five Thousand
      Dollars ($935,000). These dollar amounts shall be adjusted at the same
      time and in the same manner as provided in Code Section
      415(d).

              
	 	 	 
	 
      	
                (ii)

              	
                The
      Bank may modify distribution options in a nondiscriminatory manner as
      provided in Code Section 411(d)(6)(C).

              
	 	 	 
	 
      	
                (iii)

              	
                The
      distribution of that portion of a Participant’s Account that
      is  attributable to Employer Stock acquired with the proceeds of
      a loan described in Section 4.4 may be delayed until the close of the Plan
      Year in which such loan is repaid in
full.

              

      

      
      

       

      
        	
                 
      

              	
                7.3

              	
                DEATH
      BENEFITS; DESIGNATION OF
BENEFICIARY

              

      

       

      At any
time and from time to time, each Participant and each Beneficiary shall have the
right to designate the person who shall receive the amount payable under this
Plan on his or her death, and to revoke such designation, as limited by this
Section 7.3.

       

      (a)         
 Each designation shall be evidenced by a written instrument filed with the
Trustee, signed by the Participant or Beneficiary. If no such designation is on
file with the Trustee at the time of the death of the Participant or
Beneficiary, or if the designation is not effective for the any of the reasons
stated in this Section or any other reasons, then the person conclusively deemed
to be the person so designated as Beneficiary shall be (i) the surviving spouse
of the Participant or Beneficiary or (ii) if the Participant or Beneficiary has
no surviving spouse, the estate of such Participant or Beneficiary. The
Beneficiary of the death benefit payable pursuant to this Section 7.3 shall be
the Participant’s spouse. A Participant may designate a Beneficiary other than
his spouse if:

       

      
        	 
      	
                (i)

              	
                The
      spouse has waived the right to be the Participant’s
      Beneficiary,

              
	 	 	 
	 
      	
                (ii)

              	
                The
      Participant is legally separated or has been abandoned (within the meaning
      of local law) and the Participant has a court order to such effect (and
      there is no “qualified domestic relations order” as defined in Code
      Section 414(p) (“QDRO”) that provides otherwise),

              
	 	 	 
	 
      	
                (iii)

              	
                The
      Participant has no spouse, or

              
	 	 	 
	 
      	
                (iv)

              	
                The
      spouse cannot be located.

              

      

       

      (b)           A
Participant may at any time revoke his designation of a Beneficiary or change
his Beneficiary by filing written notice of such revocation or change with the
Committee. However, the Participant’s spouse must again consent in writing to
any change in Beneficiary unless the original consent acknowledged that the
spouse had the right to limit consent only to specific Beneficiary and that the
spouse voluntarily elected to relinquish such right. If no valid designation of
Beneficiary exists at the time of the Participant’s death, the death benefit
shall be payable to his estate. Any consent by the Participant’s spouse to waive
any rights to the death benefit must be in writing, must acknowledge the effect
of such waiver, and be witnessed by a Plan representative or a notary public.
Further, the spouse’s consent must be irrevocable and must acknowledge the
specific non-spouse Beneficiary.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                7.4

              	
                BANK
      CERTIFICATION

              

      

       

      The Bank
shall certify to the Administrative Committee and the Trustee, in the event of
termination of the employment of any Participant, as to the date of such
termination.

       

      
        	
                 
      

              	
                7.5

              	
                MINIMUM
      DISTRIBUTION REQUIREMENTS

              

      

       

      The
requirements of this Section 7.5 and the following Sections 7.6 through 7.9 take
precedence over any inconsistent provisions of the Plan. All distributions
required under this Sections 7.6 through 7.9 will be determined and made in
accordance with the Regulations Section 1.401(a)(9).

       

      
        	
                 
      

              	
                7.6

              	
                TIME
      AND MANNER OF MINIMUM REQUIRED
DISTRIBUTIONS

              

      

       

      (a)           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.

       

      (b)           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 died, 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 7.6(b), other
      than Section 7.6(b)(i), will apply as if the surviving spouse were the
      Participant.

              

      

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      For
purposes of Sections 7.6(a) and (b), unless Section 7.6(b)(iv) applies,
distributions are considered to begin on the Participant’s required beginning
date. If Section 7.6(b)(iv) applies, distributions are considered to begin on
the date distributions are required to begin to the surviving spouse under
Section 7.6(b)(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
subsection (b)(i), the date distributions are considered to begin is the date
distributions actually commence.

       

      (c)           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 Sections 7.7 and 7.8. 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
Code Section 401(a)(9) and applicable Regulations.

       

      
        	
                 
      

              	
                7.7

              	
                REQUIRED
      MINIMUM DISTRIBUTIONS DURING PARTICIPANT’S
  LIFETIME

              

      

       

      (a)           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 Regulation
      Section 1.401(a)(9)-9, 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 Regulation Section 1.401(a)(9)-9, using
      the Participant’s and spouse’s attained ages as of the Participant’s and
      spouse’s birthdays in the distribution calendar
  year.

              

      

       

      (b)           Required
minimum distributions will be determined beginning with the first distribution
calendar year and up to and including the distribution calendar year that
includes the Participant’s date of death.

       

      
        	
                 
      

              	
                7.8

              	
                REQUIRED
      MINIMUM DISTRIBUTIONS AFTER PARTICIPANT’S
DEATH

              

      

       

      (a)           Death
On or After Date Distributions Begin.

       

      
        	 
      	
                (i)

              	
                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:

              

      

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      
        	 
      	
                (A)    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.

              
	 	 
	 
      	
                (B)    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.

              
	 	 
	 
      	
                (C)    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.

              
	 	 
	 
      	
                (ii)

              	
                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.

              
	 	 	 
	
                (b)

              	
                Death
      Before Date Distributions Begin.

              
	 	 
	 
      	
                (i)

              	
                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 the remaining life
      expectancy of the Participant’s designated beneficiary, determined as
      provided in Section 7.8(a).

              
	 	 	 
	 
      	
                (ii)

              	
                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.

              
	 	 	 
	 
      	
                (iii)

              	
                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 7.8(a)(i)(B), this
      Section 7.8(b)(iii) will apply as if the surviving spouse were the
      Participant.

              

      

      

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                7.9

              	
                DEFINITIONS

              

      

       

      The
following definitions shall apply for purposes of Sections 7.6 through
7.8:

       

      (a)           Designated
beneficiary. The individual who is designated as the beneficiary under Section
7.3 of the Plan and is the designated beneficiary under Code Section 401(a)(9)
and Regulations 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 7.6(b).
The required minimum distribution for the 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
Regulation Section 1.401(a)(9)-9.

       

      (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. For a Participant who is not a five percent (5%) owner, the
required beginning date is the April 1 of the calendar year following the later
of (i) the calendar year in which the Participant attains age 701⁄2, or (ii) the
calendar year in which the Participant retires. The required beginning date for
a Participant who is a five percent (5%) owner (as defined in Code Section
416(i)) is April 1 of the calendar year following the calendar year in which the
Participant attains age 701⁄2.

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                7.10

              	
                DISTRIBUTION
      FOR MINOR BENEFICIARY

              

      

       

      If a
distribution is to be made to a minor, then the Administrative Committee may
direct that such distribution be paid to the legal guardian, or if none, to a
parent of such Beneficiary or a responsible adult with whom the Beneficiary
maintains his or her residence, or to the custodian for such Beneficiary under
the Uniform Gift To Minors Act, if permitted by the laws of the state in which
the Beneficiary resides. A payment to the legal guardian, custodian or parent of
a minor Beneficiary under this Section 7.10 shall fully discharge the Trustee,
the Bank, and the Plan from further liability on account thereof.

       

      
        	
                 
      

              	
                7.11

              	
                LOCATION
      OF PARTICIPANT OR BENEFICIARY
UNKNOWN

              

      

       

      If all,
or any portion, of the distribution payable to a Participant or Beneficiary
under this Plan shall, at the expiration of five (5) years after it shall become
payable, remain unpaid solely by reason of the inability of the Administrative
Committee, after sending a registered letter, return receipt requested, to the
last known address, and after further diligent effort, to ascertain the
whereabouts of such Participant or his Beneficiary, the amount so distributable
shall be treated as a Forfeiture pursuant to the Plan. If a Participant or
Beneficiary is located subsequent to his or her benefit being reallocated under
this Section 7.11, the forfeited benefit shall be restored.

       

      
        	
                 
      

              	
                7.12

              	
                LIMITATIONS
      ON BENEFITS AND DISTRIBUTIONS.

              

      

       

      All
rights and benefits, including elections, provided to a Participant in this Plan
shall be subject to the rights afforded to any alternate payee under a QDRO.
Furthermore, a distribution to an alternate payee shall be permitted if such
distribution is authorized by a QDRO, even if the affected Participant has not
reached the earliest retirement age under the Plan. For the purposes of this
Section 7.12, “alternate payee,” “QDRO” and “earliest retirement age” shall have
the meaning set forth under Code Section 414(p).

       

      
        	
                 
      

              	
                7.13

              	
                DIRECT
      ROLLOVERS

              

      

       

      Despite
any provision of the Plan to the contrary that would otherwise limit a
distributee’s election under this Article VII, a distributee may elect, at the
time and in the manner prescribed by the Administrative Committee, to have any
portion of an eligible rollover distribution paid directly to an eligible
retirement plan specified by the distributee in a direct rollover. For purposes
of this Section 7.13, the following definitions shall apply:

       

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

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      (b)           Eligible
retirement plan: An eligible retirement plan is an individual retirement account
described in Code Section 408(a), an individual retirement annuity described in
Code Section 408(b) , an annuity plan described in Code Section 401(a)(3), an
annuity contract described in Code Section 403(b), a qualified trust described
in Code Section 401(a), or an eligible plan under Code Section 457(b) which is
maintained by state, political subdivision of a state, or any agency or
instrumentality of a state or political subdivision of a state and which agrees
to separately account for amounts transferred into such plan from this
Plan.

       

      (c)           Distributee:
A distributee includes an Employee or former Employee. In addition, the
Employee’s or former Employee’s surviving spouse and the Employee’s or former
Employee’s spouse or former spouse who is the alternate payee under a QDRO are
distributees with regard to the interest of the spouse or former
spouse.

       

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

       

      VIII.  TRUST
AND TRUSTEES

       

      
        	
                 
      

              	
                8.1

              	
                TRUST
      AND TRUSTEE

              

      

       

      (a)           There
is hereby established a trust for sole purpose of holding and investing the Fund
in accordance with the requirements of ERISA Section 403(a) and the terms of
this instrument. The trust shall consist of contributions under this Plan, as
adjusted for interest, gains and losses, less payments to Participants. By
executing this instrument, the Trustee hereby accepts appointment as such and
agrees to carry out its duties and obligations under this Plan.

       

      (b)           The
Trustee shall discharge its duties hereunder solely in the interest of the
Participants and their Beneficiaries, and for the exclusive purpose of providing
benefits to Participants and Beneficiaries and Defraying reasonable expenses of
administering the Plans, (ii) with the care, skill, prudence, and diligence
under the circumstances then prevailing that a prudent person acting in a like
capacity and familiar with such matters would use in the conduct of an
enterprise of a like character and with like aims, (iii) in accordance with the
documents and instruments governing the Plan unless, in the good faith judgment
of the Trustee, the documents and instruments are not consistent with the
provisions of ERISA, and (iv) in a manner that does not constitute a non-exempt
prohibited transaction under Code Section 4975 of the Code or ERISA Sections 406
or 407.

       

      
        	
                 
      

              	
                8.2

              	
                GENERAL
      POWERS

              

      

       

      The
Trustee shall have the following powers, rights and duties with respect to the
Fund in addition to those provided elsewhere in this instrument or by
law.

       

      (a)           To
receive and to hold all contributions paid to it under the Plan; provided,
however, that the Trustee shall have no duty to require any contributions to be
made to it, or to determine that the contributions received by it comply with
the provisions of the Plan or with any resolution of the Board of Directors
providing for such contribution.

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      (b)           To
retain in cash (pending investment, reinvestment or the distribution of
dividends) such reasonable amount as may be required for the proper
administration of the Trust and to invest such cash as provided in Article
IV.

       

      (c)           As
directed by the Administrative Committee, to make distributions from the Fund to
such persons or trusts, in such manner, at such times and in such forms as
directed without inquiring as to, whether a payee is entitled to the payment, or
as to whether a payment is proper, and without liability for a payment made in
good faith without actual notice or knowledge of the changed condition or status
of the payee. If any payment of benefits directed to be made from the Fund by
the Trustee is not claimed, the Trustee shall notify the Administrative
Committee of that fact promptly. The Administrative Committee shall make a
diligent effort to ascertain the whereabouts of the payee or distributee of
benefits returned unclaimed. The Trustee shall dispose of such payments as the
Administrative Committee shall direct. The Trustee shall have no obligation to
search for or ascertain the whereabouts of any payee or distributee of benefits
from the Fund.

       

      (d)           To
vote or exercise other rights with respect to any Employer Stock in the Fund at
its discretion, except to the extent provided in the Plan, and to vote or
exercise other rights with regard to any other stocks, bonds or other securities
held in the Trust, or otherwise consent to or request any action on the part of
the issuer in person, by proxy or power of attorney.

       

      (e)           To
contract or otherwise enter into transactions between the Trust and the Bank or
any Bank shareholder or other person, for the purpose of acquiring, selling, or
exchanging Employer Stock and, to retain in the Fund any Employer Stock so
acquired.

       

      (f)           To
compromise, contest, arbitrate, settle or abandon claims and demands by or
against the Fund.

       

      (g)           To
begin, maintain or defend any litigation necessary in connection with the
investment, reinvestment and administration of the Trust.

       

      (h)           To
report to the Bank as of the last day of each Plan Year or at such other times
as may be required under the Plan, the then current fair market value of all
property held in the Fund, reduced by any liabilities other than liabilities to
Participants, as determined by the Trustee.

       

      (i)           To
furnish to the Bank such other information as the Trustee may possess, which the
Administrative Committee requires in order to comply with the reporting and
disclosure requirements of ERISA. The Trustee shall keep accurate accounts of
all investments, earnings thereon. All accounts, books and records related to
such investments shall be open to inspection by any person designated from
time-to-time by the Bank or the Administrative Committee. All accounts of the
Trustee shall be kept on an accrual basis. The Bank may approve such accounting
by written notice of approval delivered to the Trustee or by failure to express
objection to such accounting in writing delivered to the Trustee within one
hundred twenty (120) days from the date upon which the accounting was delivered
to the Bank. Upon the receipt of a written approval of the accounting, or upon
the passage, of the period of time within which objection may be filed without
written objections having been delivered to the Trustee, such accounting shall
be deemed to be approved, and the Trustee shall be released and discharged as to
all items, matters and things set forth in such account as fully as if such
accounting had been settled and allowed by decree, of a court of competent
jurisdiction in an action or proceeding in which the Trustee, the Bank and all
persons having or claiming to have any interest in the Fund or under the Plan
were parties.

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      (j)           As
directed by the Administrative Committee, to pay any estate, inheritance, income
or other tax, charge or assessment attributable to any benefit which it shall or
may be required to pay out of such benefit; and to require before making any
payment such release or other document from any taxing authority and such
indemnity from the intended payee as the Trustee shall deem necessary for its
protection.

       

      (k)           To
employ and to reasonably rely upon information and advice furnished by agents,
attorneys, appraisers, accountants or other persons of its choice for such
purposes as the Trustee considers necessary for the proper administration of the
Trust.

       

      (l)           To
assume, until advised to the contrary, that the Trust established and maintained
under this Article VIII is qualified under Code Section 401(a) and is entitled
to tax-exempt status under Code Section 501(a).

       

      (m)           To
invest and reinvest the assets of the Fund in personal property of any kind,
including, but not limited to bonds, notes, debentures, mortgages, equipment
trust certificates, investment trust certificates, guaranteed investment
contracts, preferred or common stock, and registered investment
companies.

       

      (n)           To
exercise any options, subscription rights and other privileges with respect to
Trust assets.

       

      (o)           To
register ownership of any securities or other property held by it in its own
name or in the name of a nominee, with or without the addition of words
indicating that such securities are held in a fiduciary capacity, and may hold
any securities in bearer form, but the books and records of the Trustee shall at
all times reflect that all such investments are part of the Trust.

       

      (p)           To
borrow such sum or sums from time to time as the Trustee considers necessary or
desirable and in the best interest of the Fund, and for that purpose to mortgage
or pledge any part of the Fund.

       

      (q)           To
deposit securities with a clearing corporation as defined in Article 8 of the
Uniform Commercial Code. The certificates representing securities, including
those in bearer form, may be held in bulk form with, and may be merged into,
certificates of the same class of the same issuer which constitute assets of
other accounts or owners, without certification as to the ownership attached.
Utilization of a book-entry system may be made for the transfer or pledge of
securities held by the Trustee or by a clearing corporation. The Trustee shall
at all times, however, maintain a separate and distinct record of the securities
owned by the Trust.

       

      (r)           To
participate in and use the Federal Book-Entry Account System, a service provided
by the Federal Reserve Bank for its member banks for deposit of Treasury
securities.

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

       

      (s)           To
perform any and all other acts which are necessary or appropriate for the proper
management, investment and distribution of the Fund.

       

      
        	
                 
      

              	
                8.3

              	
                RESPONSIBILITY
      OF TRUSTEE.

              

      

       

      The
Trustee shall not be responsible in any way for the adequacy of the Fund to meet
and discharge any or all liabilities under the Plan or for the proper
application of distributions made or other action taken upon the direction of
the Administrative Committee.

       

      
        	
                 
      

              	
                8.4

              	
                COMPENSATION
      AND EXPENSES.

              

      

       

      The
Trustee shall be entitled to reasonable compensation for services, as agreed to
between the Bank and the Trustee from time to time in writing and to
reimbursement of all reasonable expenses incurred by it in the administration of
the Trust. The Trustee is authorized to pay from the Fund all expenses of
administering the Plan and Trust, including its compensation, compensation to
any agents employed by the Trustee and any accounting, legal and valuation
expenses, to the extent they are not paid directly by the Bank or any Affiliated
Employers. The Trustee shall be fully protected in making payments of
administrative expenses pursuant to the written directions of the Administrative
Committee.

       

      
        	
                 
      

              	
                8.5

              	
                CONTINUATION
      OF POWERS UPON TRUST TERMINATION.

              

      

       

      Upon
termination of the Trust, the powers, rights and duties of the Trustee hereunder
shall continue until all Fund assets have been liquidated.

       

      
        	
                 
      

              	
                8.6

              	
                RESIGNATION.

              

      

       

      The
Trustee may resign at any time by giving thirty (30) days’ advance written
notice to the Bank and the Administrative Committee.

       

      
        	
                 
      

              	
                8.7

              	
                REMOVAL
      OF THE TRUSTEE.

              

      

       

      The Bank
may remove the Trustee for any reason or for no reason by giving thirty (30)
days advance written notice to the Trustee, subject to providing the removed
Trustee with satisfactory written evidence of the appointment of a successor
Trustee and of the successor Trustee’s acceptance of the
trusteeship.

       

      
        	
                 
      

              	
                8.8

              	
                DUTIES
      OF RESIGNING OR REMOVED TRUSTEE AND OF SUCCESSOR
  TRUSTEE.

              

      

       

      If the
Trustee resigns or is removed, the Trustee shall promptly transfer and deliver
the assets of the Fund to the successor Trustee(s). Within 120 days, the
resigned or removed Trustee shall furnish to the Bank and the successor
Trustees) an account of its administration of the Trust from the date of its
last account. Each successor Trustee shall succeed to the title to the Fund
vested in its predecessor without the signing or filing of any further
instrument, but any resigning or removed Trustee shall execute all documents and
do all acts necessary to vest such title or record in any successor Trustee.
Each successor shall have all the powers, rights and duties conferred by this
Trust as if originally named Trustee. No successor Trustee shall be personally
liable for any act or failure to act of a predecessor Trustee. With the approval
of the Administrative Committee, a successor Trustee may accept the account
rendered and the property delivered to it by its predecessor Trustee as a full
and complete discharge to the predecessor Trustee without incurring any
liability or responsibility for so doing.

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                8.9

              	
                FILLING
      TRUSTEE VACANCY.

              

      

       

      The Bank
may fill a vacancy in the office of Trustee as soon as practicable by a writing
filed with the person or entity appointed to fill the vacancy.

       

      
        	
                 
      

              	
                8.10

              	
                DISAGREEMENT
      AS TO ACTS.

              

      

       

      If there
is a disagreement between the Trustee and anyone as to any act or transaction
reported in any accounting, the Trustee shall have the right to have its account
settled by a court of competent jurisdiction.

       

      
        	
                 
      

              	
                8.11

              	
                PERSONS
      DEALING WITH TRUSTEE.

              

      

       

      No person
dealing with the Trustee shall be required to see to the application of any
money paid or property delivered to the Trustee, or to determine whether or not
the Trustee is acting pursuant to any authority granted to it under or the
Plan.

       

      
        	
                 
      

              	
                8.12

              	
                MULTIPLE
      TRUSTEES.

              

      

       

      In the
event that more than one person shall serve as co-trustees hereunder, then the
action of a majority of the co-trustees serving at any time shall be deemed to
be the action of the Trustee.

       

      
        	
                 
      

              	
                8.13

              	
                DEALINGS
      WITH THE ADMINISTRATIVE COMMITTEE

              

      

       

      The
Administrative Committee may authorize one or more individuals to sign all
communications between the Administrative Committee and Trustee and shall at all
times keep the Trustee advised of the names of the members of the Administrative
Committee and the individuals authorized to sign on behalf of the Administrative
Committee. With the Trustee’s prior written consent, the Administrative
Committee may authorize the Trustee to act, without specific directions or other
directions or instructions from the Administrative Committee, on any matter or
class of matters with respect to which directions or, instructions from the
Administrative Committee may be required. The Trustee shall be fully protected
in relying on any communication sent by any authorized person and shall not be
required to verify the accuracy or validity of any signature unless the Trustee
has reasonable ground to doubt the authenticity of any signature. If the Trustee
requests any directions hereunder with respect to a matter that is not within
the Trustee’s sole discretion and does not receive them, the Trustee shall act
or refrain from acting, as it may determine, with no liability for such action
or inaction. If at any time person(s) serving as members of the Administrative
Committee and person(s) serving as the Trustee are the same, then there shall be
no need for written instructions from the Administrative Committee to the
Trustee, and all actions taken by the Trustee shall be deemed to have been
properly authorized by the Administrative Committee.

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

       

      IX.  DIVIDENDS

       

      
        	
                 
      

              	
                9.1

              	
                PAYMENT
      OF DIVIDENDS.

              

      

       

      All
dividends paid with respect to Employer Stock owned by the Trust shall, in the
discretion of the Bank:

       

      
        	 
      	
                (i)

              	
                Be
      retained by the Trustee and added to the corpus of the
    Trust,

              
	 	 	 
	 
      	
                (ii)

              	
                Be
      paid in cash directly to the Participants,

              
	 	 	 
	 
      	
                (iii)

              	
                Be
      paid to the Trustee and distributed in cash to the Participants not later
      than ninety (90) days after the close of the Plan Year in which the
      dividend was paid, or

              
	 	 	 
	 
      	
                (iv)

              	
                Be
      used to repay a loan described in Section 4.4, the proceeds of which were
      used to acquire the Employer Stock with respect to which the dividend was
      paid.

              

      

      
      

       

      
        	
                 
      

              	
                9.2

              	
                ALLOCATION
      OF DIVIDENDS.

              

      

       

      In the
event of a distribution or payment of dividends to the Participants, each
Participant shall receive that portion of dividends paid in the ratio in which
the balance of his or her Account on the preceding Anniversary Date bears to the
sum of the balances for the Accounts of all Participants on that date. In the
event the Trustee uses dividends paid on Employer Stock to repay a loan
described in Section 4.4, then for that Plan Year, Employer Stock must be
allocated to each Participant’s account that has a fair market value of not less
than the amount of such dividend that would otherwise have been allocated to
that Participant if the dividend had been distributed to the Participants. If a
Participant is prohibited from having certain Employer Stock allocated to his
Account because of Code Section 409(n), then the Trustee shall pay directly to
such Participant his proportionate share of the dividend in cash rather than
applying said dividend to the repayment of a loan described in Section
4.4.

       

      X.  PUT
OPTIONS

       

      
        	
                 
      

              	
                10.1

              	
                APPLICATION

              

      

       

      The
provisions of this Article apply only if (i) the Employer Stock is not, or
ceases to be, traded on an established securities market or (ii) is subject to a
restriction under any Federal or state securities law, or regulation thereunder,
which would make the security not as freely tradable as one not subject to such
restriction.

       

      
        	
                 
      

              	
                10.2

              	
                PUT
      OPTION

              

      

       

      Upon the
distribution of shares of Employer Stock to a Participant, the distributee shall
have the right to require the Bank to purchase such shares, at their then fair
market value (herein referred to as the “put option”), in accordance with the
following terms and conditions:

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

       

      (a)           The
put option must be exercised only by the Participant, or by the Participant’s
donees, or by a person (including an estate or its distributee) to whom the
shares pass by reason of a Participant’s death. For this purpose, “Participant”
shall mean a Participant in the Plan and Trust, and any Beneficiary of such
Participant.

       

      (b)           Although
the put option is binding upon the Bank, and not upon the Plan and Trust, the
Plan and Trust shall retain the option to assume the rights and obligations of
the Bank at the time of exercise of the put option.

       

      (c)           If
it is known at the time that a loan is made to the Trust for the purpose of the
acquisition of Employer Stock, that Federal or state law will be violated by the
Bank’s honoring of the put option, the Employer Stock involved may be put (in a
manner consistent with such law) to a third party (e.g., an affiliate of the
Bank or a shareholder other than the Plan and Trust) that has substantial net
worth at the time the loan is made, and whose net worth is reasonably expected
to remain substantial.

       

      (d)           The
put option is exercisable during the period of fifteen (15) months which begins
on the date the Employer Stock is distributed to the Participant by the Plan and
Trust, and must be exercised (if at all) by written notification to the
Bank.

       

      (e)           The
price to be paid by the Bank upon exercise of the put option shall be the then
fair market value of the shares, determined by the Trustee as of the Valuation
Date coinciding with or immediately preceding the date of distribution;
provided, however, that if the fair market value of shares of Employer Stock is
determined after such Valuation Date but prior to the date of distribution of
the shares, the fair market value as determined as of the more recent valuation
shall control. For this purpose, fair market value shall be determined in
accordance with the provisions of Section 4.2, respecting the valuation of
shares of Employer Stock held in the Trust.

       

      (f)           If
the balance to the credit of a Participant’s account is distributed within one
(1) taxable year, the purchase price for the shares of Employer Stock shall be
paid in substantially equal annual, quarterly or monthly payments over a period
beginning not later than thirty (30) days after the exercise of the put option
and not exceeding five (5) years. Interest on the unpaid balance shall accrue
and shall be paid with each payment of principal, at a reasonable rate of
interest. Adequate security shall be provided for the obligations. If a
Participant’s account balance is distributed to him or her in installments, the
purchase price for the shares of Employer Stock shall be paid in cash no later
than thirty (30) days after the exercise of the put option.

       

      (g)           The
terms of the put option and the administration of the Employer Stock purchase
provisions of this Plan and Trust shall be conducted according to a uniform,
nondiscriminatory policy established by the Bank with respect to Participants
similarly situated.

       

      XI.  RIGHT
OF FIRST REFUSAL

       

      
        	
                 
      

              	
                11.1

              	
                APPLICATION

              

      

       

      The
provision of Sections 11.2 and 11.3 below apply only if the Employer Stock is
not, or ceases to be, traded on an established securities market.

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                11.2

              	
                RIGHT
      OF FIRST REFUSAL

              

      

       

      Any
Participant or transferee who desires to transfer (whether by sale, gift or
bequest) any shares of Employer Stock shall first offer in writing such shares
for sale to the Bank at the same price and upon the same terms offered to such
shareholder by a bona fide prospective purchaser of such shares. In the case of
gifts or bequests, such shares shall first be offered for sale to the Bank at
the fair market value of shares as determined under Section 4.2. Such written
offer must be presented to the Bank and the option periods set forth below must
have expired prior to the making of any gift or prior to the transfer out of a
Participant’s or transferee’s estate. The Bank shall have the option for seven
(7) days after the later of (i) the death of the Participant or transferee, or
(ii) the Bank’s receipt of such written offer, to accept such offer. If, within
such seven-day period, the Bank fails to accept such offer in its entirety, its
option hereunder as to such offer shall terminate. Thereupon, immediately
following the termination of said offer as to the Bank, the said same offer
shall be deemed without further writing to have been renewed and reinstated as
to the Trust, and the Trust shall have the option for three (3) days after the
termination of the Bank’s option to purchase such part or all of the stock which
the offering shareholder desires to transfer. If the option is not exercised
within the seven (7) day period, then the shareholder so desiring to transfer
part or all of his or her Employer Stock shall have the right for a period
ending on the thirtieth (30th) day after the expiration of the aforesaid seven
(7) day period, to transfer such stock to, and only to, the donee or beneficiary
or in the case of a sale, to the aforesaid bona fide prospective purchaser in
the same quantity, at the same price, and upon the same terms as were offered to
the Bank and/or the Trust. In the case of gifts or bequests, if the option is
not exercised by the Bank or the Trustee then such shares may be transferred to
the donees, legatees or heirs of the transferor. In case of any transfer by
reason of gift or death under this Section 11.2, the legatees, heirs, next of
kin, donees or other transferees shall receive and hold such stock subject to
the restrictions on encumbrance and disposition set forth in this Article
XI.

       

      
        	
                 
      

              	
                11.3

              	
                ENDORSEMENT
      OF CERTIFICATES

              

      

       

      Prior to
the distribution of any shares of Employer Stock to a Participant, the Trustee
shall have the Bank endorse such shares as follows:’

       

      “The
shares represented by this certificate are subject to a Right of First Refusal
as set forth in Section 11.2 of the Auburn Savings Bank, FSB Employee Stock
Ownership Plan and Trust, as amended from time to time, restricting the free
transferability of said shares. The Bank will mail to the holder of this
certificate, without charge, a copy of the terms of such Right of First Refusal
within five (5) days after receiving a written request therefor.”

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

       

      XII.  ADMINISTRATIVE
COMMITTEE

       

      
        	
                 
      

              	
                12.1

              	
                STATUS

              

      

       

      The
Administrative Committee (i) is a “named fiduciary” for purposes of ERISA
Section 402(a)(1) with authority to control and manage the operation and
administration of the Plan, (ii) is responsible for complying with all of the
reporting and disclosure requirements of Part 1 of Subtitle B of Title I of
ERISA, and (iii) has the power and authority in its sole, absolute and
uncontrolled discretion to control or manage the operation and administration of
the Plan, including all powers necessary to accomplish these purposes. The
Administrative Committee will not, however, have any authority over the
investment of assets of the Trust in its capacity as such.

       

      
        	
                 
      

              	
                12.2

              	
                POWERS

              

      

       

      The
Administrative Committee has full discretionary power to administer the Plan in
all of its details in accordance with the requirements of ERISA and other
applicable laws. For this purpose the Administrative Committee’s discretionary
powers include, but are not be limited to, the following:

       

      
        	 
      	
                (i)

              	
                To
      make and enforce such rules and regulations as it deems necessary or
      proper for the efficient administration of the Plan or required to comply
      with applicable law;

              
	 	 	 
	 
      	
                (ii)

              	
                To
      interpret and construe the Plan;

              
	 	 	 
	 
      	
                (iii)

              	
                To
      decide all questions concerning the Plan and the eligibility of any person
      to participate in the Plan;

              
	 	 	 
	 
      	
                (iv)

              	
                To
      compute the amounts to be distributed under the Plan, and to determine the
      person or persons to whom such amounts will be
  distributed;

              
	 	 	 
	 
      	
                (v)

              	
                To
      authorize the payment of distributions;

              
	 	 	 
	 
      	
                (vi)

              	
                To
      keep such records and submit such filings, elections, applications,
      returns or other documents or forms as may be required under the Code and
      applicable regulations, or under other federal, state or local law and
      regulations;

              
	 	 	 
	 
      	
                (vii)

              	
                To
      allocate and delegate its ministerial duties and responsibilities and to
      appoint such agents, counsel, accountants and consultants as may be
      required or desired to assist in administering the Plan;
    and

              
	 	 	 
	 
      	
                (viii)

              	
                By
      written instrument, to allocate and delegate its fiduciary
      responsibilities in accordance with ERISA Section
  405.

              

      

      

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                12.3

              	
                DUTIES

              

      

       

      The
Administrative Committee shall decide any disputes which may arise relative to
the rights of Participants and/or Employees, past and present, and their
Beneficiaries, under the terms of this Plan, shall give instructions and
directions to the Trustee as necessary and, in general, shall direct the
administration of the Plan; provided that the Administrative Committee may not,
through interpretation of or action under the Plan (including amendment or
termination under Article XIII), increase the burden imposed upon the Trustee
without the Trustee’s consent. The Administrative Committee shall keep records
containing all relevant data pertaining to any person affected hereby and his
rights under the Plan and shall ascertain that such person receives the benefits
to which he or she is entitled. No member of the Administrative Committee shall
have any right to vote or decide upon any matter relating solely to himself or
any of his rights or benefits under this Plan.

       

      (a)           The
Administrative Committee shall establish accounting procedures for the purpose
of making the allocations, valuations, and adjustments to both the Account and
Employer Stock Account of each Participant and it shall maintain adequate
records of the cost basis of Employer Stock allocated to each Participant’s
Employer Stock Account.

       

      (b)           The
Administrative Committee shall determine the eligibility of Participants,
according to the provision of this Plan, from the information furnished to it by
the Bank.

       

      (c)           Wherever,
under the provisions of this Plan, discretion is granted to the Administrative
Committee which affects the benefits, rights and privileges of Participants,
such discretion shall be exercised uniformly so that all Participants similarly
situated shall be similarly treated.

       

      
        	
                 
      

              	
                12.4

              	
                EFFECT
      OF INTERPRETATION OR DETERMINATION

              

      

       

      Any
interpretation of the Plan or other determination with respect to the Plan by
the Administrative Committee will be final, conclusive and binding on all
persons in the absence of clear and convincing evidence that the committee acted
arbitrarily and capriciously.

       

      
        	
                 
      

              	
                12.5

              	
                RELIANCE
      ON TABLES, ETC.

              

      

       

      In
administering the Plan, the Administrative Committee is entitled, to the extent
permitted by law, to rely conclusively on all tables, valuations, certificates,
opinions and reports which are furnished by any accountant, trustee, counsel or
other expert who is employed or engaged by the Administrative Committee or by
the Bank on the committee’s behalf.

       

      
        	
                 
      

              	
                12.6

              	
                CLAIMS
      AND REVIEW PROCEDURES.

              

      

       

      The
following claims procedure is intended to conform with the requirements of ERISA
Section 503:

       

      (a)           If
any person believes he or she is being denied any rights or benefits under the
Plan, such person may file a claim in writing with the Administrative
Committee.  If any such claim is wholly or partially denied, the
Administrative Committee will notify such person of its decision in writing.
Such notification will contain (i) specific reasons for the denial, (ii)
specific reference to pertinent plan provisions, (iii) a description of any
additional material or information necessary for such person to perfect such
claim and an explanation of why such material or information is necessary and
(iv) information as to the steps to be taken if the person wishes to submit a
request for review. Such notification will be given within 90 days after the
claim is received by the Administrative Committee (or within 180 days, if
special circumstances require an extension of time for processing the claim, and
if written notice of such extension and circumstances is given to such person
within the initial 90 day period). If such notification is not given within such
period, the claim will be considered denied as of the last day of such period
and such person may request a review of his or her claim.

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

       

      (b)           Within
60 days after the date on which a person receives a written notice of a denied
claim (or, if applicable, within 60 days after the date on which such denial is
considered to have occurred) such person (or his or her duly authorized
representative) may (a) file a written request with the Administrative Committee
for a review of his or her denied claim by the Administrative Committee, (b)
submit written issues and comments to the Administrative Committee and (c)
review pertinent documents. The Administrative Committee will notify such person
of its decision in writing. Such notification will be written in a manner
calculated to be understood by such person and will contain specific reasons for
the decision as well as specific references to pertinent plan provisions. The
decision on review will be made within 60 days after the request for review is
received by the Administrative Committee (or within 120 days, if special
circumstances require an extension of time for processing the request, such as
an election by the Administrative Committee to hold a hearing, and if written
notice of such extension and circumstances is given to such person within the
initial 60 day period). If the decision on review is not made within such
period, the claim will be considered denied.

       

      
        	
                 
      

              	
                12.7

              	
                INDEMNIFICATION

              

      

       

      The Bank
agrees to indemnify and defend to the fullest extent of the law any Employee,
officer or director of the Bank (i) who serves or has served on the
Administrative Committee, (ii) who assists the Administrative Committee in
administering the Plan as part of his or her employment duties with the Bank, or
(iii) to whom the Administrative Committee has delegated any of its duties or
responsibilities, including any former Employee, officer or director described
in (i) or (ii) against any liabilities, damages, costs and expenses (including
attorneys’ fees and amounts paid in settlement of any claims approved by the
Bank occasioned by any act or omission to act in connection with the Plan, if
such act or omission to act is in good faith and without gross
negligence.

       

      
        	
                 
      

              	
                12.8

              	
                ANNUAL
      REPORT

              

      

       

      The
Administrative Committee shall submit annually to the Bank a report showing in
reasonable summary form, the financial position of the Trust and giving a brief
account of the operations of the Plan for the past year, and such further
information as the Bank may reasonably require.

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                12.9

              	
                EXPENSES
      OF PLAN

              

      

       

      The
Administrative Committee may direct a Trustee to pay from the Fund any or all
expenses of administering the Plan, to the extent such expenses are reasonable.
The Administrative Committee will determine what constitutes a reasonable
expense of administering the Plan, and whether such expenses shall be paid from
the Trust. The Administrative Committee may also allocate administrative charges
attributable to specific plan expenses, including but not limited to
determinations regarding QDROs and plan loan origination fees, to the affected
Participant or Beneficiary’s Account. Any such expense not paid out of the Trust
shall be paid by the Bank or the Affiliated Employers; provided, however, that
to the extent permitted by ERISA, the Administrative Committee may direct a
Trustee to reimburse the Bank or the Affiliated Employers, as the case may be,
out of the Trust for a reasonable expense of administering the Plan which is
paid prior to a determination with respect to such expense.

      
         

        
          	
                   
      

                	
                  12.10

                	
                  LIMITATION
      OF LIABILITY

                

        

         

      

      No bond
or other security shall be required of any member of the ,Administrative
Committee, unless the member handles funds or other property of the Plan. A
member of the committee shall not be liable or responsible for the acts of
commission or omission of another fiduciary unless (i) the member knowingly
participates or knowingly attempts to conceal the act or omission of another
fiduciary and the member knows the act or omission is a breach of fiduciary
responsibility by the other fiduciary, (ii) the member has knowledge of a breach
by another fiduciary and shall not make reasonable effort to remedy the breach,
(iii) the member’s breach of his or her own fiduciary responsibility permits
another fiduciary to commit a breach.

       

      (a)           Neither
the Trustee nor any member of the Administrative Committee shall be liable for
any loss or damage or depreciation which may result in connection with the
execution of their duties or the exercise of its discretion or from any other
act or omission hereunder, except when due to gross negligence or willful
misconduct. At the request of the Administrative Committee, the Trustee is
authorized to purchase insurance for the Trustee and the members of the
Administrative Committee to cover liability or loss resulting from their acts or
omissions. To the extent not covered by insurance, the Trust shall pay all cost
and expenses (including legal fees) that a member of the Administrative
Committee or Trustee may incur as a result of serving as such unless it is
determined by a court of competent jurisdiction that such acts or omissions were
due to gross negligence or willful misconduct.

       

      (b)           No
fee or compensation shall be paid to any member of the Administrative Committee
for his services as a committee member. Any expenses properly incurred by the
Administrative Committee shall be reimbursed or paid by the Trust.

       

      
        
          	
                   
      

                	
                  12.11

                	
                  
                    ACCOUNTS

                  

                

        

         

      

      The
Administrative Committee shall establish and maintain separate individual
Employer Stock Accounts and Other Investment Accounts for each Participant, as
well as for each Former Participant who has an interest in the Plan. Such
separate Employer Stock Accounts and Other Investment Accounts shall not require
a segregation of the Trust assets and no Participant shall acquire a specific
asset of the Trust as a result of the allocations provided for in the
Plan.

       

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

      XIII.  AMENDMENTS
AND TERMINATION

       

      
        	
                 
      

              	
                13.1

              	
                PLAN
      AMENDMENTS

              

      

       

      The Bank
may amend this Plan in any manner and at any time, provided, however, that no
amendment shall prejudice a Participant’s or Beneficiary’s existing rights nor
revert any interest in the Trust assets, income or principal, to the Bank. An
amendment shall be made by resolution of the Board of Directors and shall be
effective upon delivery of a written instrument, executed by order of the Board
of Directors to the Trustee. No amendment which affects the rights,
responsibilities or duties of the Trustee may be made without the written
consent of the Trustee.

       

      
        	
                 
      

              	
                13.2

              	
                TERMINATION
      OF CONTRIBUTIONS

              

      

       

      The Bank
has established this Plan with the bona fide intention and expectation that from
year to year it will be able to and will deem it advisable to make its
contributions as herein provided. The Bank, however, realizes that circumstances
not now foreseen or circumstances beyond its control may make it either
impossible or inadvisable to continue to make its contributions as herein
provided. In the event the Board of Directors decides it is impossible or
inadvisable for the Bank to continue to make its contributions as herein
provided, the Board of Directors shall have the power to terminate the Bank’s
contributions by appropriate resolutions. A certified copy of such resolution or
resolutions shall be delivered to the Administrative Committee, and as soon as
possible thereafter, the Administrative Committee shall send or deliver to each
Participant and Beneficiary a copy of the same. After the date specified in such
resolution or resolutions, the Bank shall make no further contributions under
this Plan. In the event of such termination of contributions by the Bank, the
Plan and Trust shall remain in existence, and all of the provisions of the Plan
and the Trust shall remain in force which are necessary, in the opinion of the
Administrative Committee, other than the provisions for contributions by the
Bank, and all of the assets in the Trust on the date specified in such
resolution or resolutions shall be held, administered and distributed by the
Administrative Committee and the Trustee, in the manner provided herein. Despite
any other provisions of the Plan, upon complete discontinuance of contributions
to the Plan, Participants will be fully vested in their Account
balances.

       

      
        	
                 
      

              	
                13.3

              	
                TERMINATION
      OF .PLAN

              

      

       

      If the
Board of Directors shall terminate the Bank’s contributions, in accordance with
Section 13.2, the Board of Directors shall also have the power to terminate the
Plan and Trust completely or partially, by appropriate resolution specifying the
date of such termination, certified copies of which shall be delivered to the
Administrative Committee, provided, however, that upon complete or partial
termination of the Plan or complete discontinuance of contributions by the Bank
to the Trust, the rights of each Participant to the amounts credited to his or
her Account, at such time, are non-forfeitable and fully vested in each such
Participant. Upon complete or partial termination of the Plan and Trust, after
payment of all expenses and after adjustment of Participants’ and Beneficiaries’
shares for expenses, profits, losses and any other necessary adjustments, there
shall be paid to each Participant and each Beneficiary the amount of his or her
share in the Trust, in a lump sum.

       

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

       

      XIV.  TOP
HEAVY PROVISIONS

       

      
        	
                 
      

              	
                14.1

              	
                PROVISIONS
      TO APPLY

              

      

       

      The
provisions of this Article XIV shall apply for any top-heavy Plan Year
notwithstanding anything to the contrary in the Plan. All determinations under
this Article XIV will be made in accordance with the provisions of Code Section
416 and the Regulation promulgated thereunder, which are specifically
interpreted herein by reference.

       

      
        	
                 
      

              	
                14.2

              	
                MINIMUM
      CONTRIBUTION

              

      

       

      For any
Plan Year which is a top-heavy plan year, Participating Employers shall
contribute to the Trust a minimum contribution on behalf of each Participant who
is not a key employee for such year and who has not experienced a severance from
employment with Participating Employers by the end of the Plan Year. The minimum
contribution shall, in general, equal 3% of each such Participant’s
Compensation, but shall be subject to the following special rules:

       

      (a)           If
the largest contribution on behalf of a key employee for such year is equal to
less than 3% of the key employee’s Compensation, such lesser percentage shall be
the minimum contribution percentage for Participants who are not key employees.
This special rule shall not apply, however, if the Plan is required to be
included in an aggregation group and enables a defined benefit plan to meet the
requirements of Code Sections 401(a)(4) or 410.

       

      (b)           No
minimum contribution will be required with respect to a Participant who is also
covered by another top-heavy defined contribution plan of the Bank or a
Participating Employer which meets the vesting requirements of Code Section
416(b) and under which the Participant receives the top-heavy minimum
contribution.

       

      (c)           If
a Participant is also covered by a top-heavy defined benefit plan of the Bank or
an Participating Employer, “5%” shall be substituted for “3%” above in
determining the minimum contribution.

       

      (d)           The
minimum contribution with respect to any Participant who is not a key employee
for the particular year will be offset by any Bank contributions under Section
3.1, and qualified non-elective contributions (within the meaning of Code
Section 401(m)(4)(c)) and qualified matching contributions (within the meaning
of Regulation Section 1.401(k)1(a)(6)) if any, under another plan of
Participating Employers. Matching Contributions that are used to satisfy the
minimum contribution requirements shall be treated as matching contributions for
purposes of the actual contribution percentage test and other requirements of
Code Section 401(m).

       

      (e)           If
additional minimum contributions are required under this Section, such
contributions shall be credited to the Participant’s Account.

       

      (f)           A
minimum contribution required under this Section shall be made even though,
under other Plan provisions, the Participant would not otherwise be entitled to
receive an allocation for the year because of the Participant’s failure to
complete 1,000 Hours of Service.

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                14.3

              	
                DEFINITIONS

              

      

       

      For
purposes of this Article XIV, the following terms have the following
meanings:

       

      (a)           “Key
employee” means a key employee described in Code Section 416(i)(I) and “non-key
employee” means any employee who is not a key employee (including employees who
are former key employees);

       

      (b)           “Top-heavy
plan year” means a Plan Year if any of the following conditions
exist:

       

      
        	 
      	
                (i)

              	
                The
      top-heavy ratio for the Plan exceeds 60 percent and the Plan is not part
      of any required aggregation group or permissive aggregation group of
      plans;

              
	 	 	 
	 
      	
                (ii)

              	
                This
      Plan is a part of a required aggregation group of plans but not part of a
      permissive aggregation group and the top-heavy ratio for the group of
      plans exceeds 60 percent; or

              
	 	 	 
	 
      	
                (iii)

              	
                The
      Plan is part of a required aggregation group and part of a
      permissive  aggregation group of plans and the top-heavy ratio
      for the permissive aggregation group exceeds 60
  percent.

              

      

       

      (c)           “Top-heavy
ratio”

       

      
        	 
      	
                (i)

              	
                If
      any Participating Employer maintains one or more defined contribution
      plans (including any Simplified Employee Pension Plan) and the
      Participating Employer has not maintained any defined benefit plan which
      during the 5-year period ending on the determination date(s) has or has
      had accrued benefits, the top-heavy ratio for the Plan alone or for the
      required or permissive aggregation group as appropriate is a fraction, the
      numerator of which is the sum of the account balances of all key employees
      on the determination date(s), and the denomination of which is the sum of
      all account balances, both computed in accordance with Code Section 416.
      Account balances shall be increased by distributions made during the
      1-year period ending on the determination date(s) (including distributions
      under a terminated plan which, had it not been terminated, would have been
      aggregated with the Plan under Code Section 416(g)(2)(A)(i)); provided,
      however, that with respect to distributions made for a reason other than
      severance from employment, death or disability, the preceding clause shall
      be applied by substituting “1-year period” for “1-year period.” Both the
      numerator and the denominator of the top-heavy ratio are increased to
      reflect any contribution not actually made as of the determination date,
      but which is required to be taken into account on that date under Code
      Section 416.

              

      

       

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

       

      
        	 
      	
                (ii)

              	
                If
      a Participating Employer maintains one or more defined contribution plans
      (including any Simplified Employee Pension Plan) and the Participating
      Employer maintains or has maintained one or more defined benefit plans
      which during the 5-year period ending on the determination date(s) has or
      has had any accrued benefits, the top-heavy ratio for any required or
      permissive aggregation group as appropriate is a fraction, the numerator
      of which is the sum of the account balances under the aggregated defined
      contribution plan or plans for all key employees, determined in accordance
      with Section 14.3(c)(1), and the present value of accrued benefits under
      the aggregated defined benefit plan or plans for all key employees as of
      the determination date(s), and the denominator of which is the sum of the
      account balances under the aggregated defined contribution plan or plans
      for all participants, determined in accordance with Section 14.3(c)(i),
      and the present value of all accrued benefits under the defined benefit
      plan or plans for all participants as of the determination date(s), all
      determined in accordance with Code Section 416. The accrued benefits under
      a defined benefit plan in both the numerator and denominator of the
      top-heavy ratio are increased for any distribution of an accrued benefit
      in the manner described in Section 14.3(c)(i).

              
	 	 	 
	 
      	
                (iii)

              	
                For
      purposes of Sections 14.3(c)(1) and (ii), the value of account balances
      and the present value of accrued benefits will be determined as of the
      most recent valuation date that falls within or ends with the 12-month
      period ending on the determination date, except as provided in Code
      Section 416 for the first and second plan years of a defined benefit plan.
      The account balances and accrued benefits of a participant (A) who is not
      a key employee but who was a key employee in a prior year, or (B) who has
      not been credited with at least one Hour of Service with any employer
      maintaining the plan at any time during the 1-year period ending on the
      determination date will be disregarded. The calculation of the top-heavy
      ratio, and the extent to which distributions, rollovers, and transfers are
      taken into account will be made in accordance with Code Section 416.
      Deductible employee contributions will not be taken into account for
      purposes of computing the top-heavy ratio. When aggregating plans, the
      value of account balances and accrued benefits will be calculated with
      reference to the determination dates that fall within the same calendar
      year.

              
	 	 	 
	 
      	
                (iv)

              	
                The
      accrued benefit of a Participant other than a key employee shall be
      determined under (A) the method, if any, that uniformly applies for
      accrual purposes under all defined benefit plans maintained by the
      employer, or (B) if there is no such method, as if such benefit accrued
      not more rapidly than the slowest accrual rate permitted under the
      fractional rule of Code Section
411(b)(1)(C).

              

      

       

      (d)           The
“permissive aggregation group” is the required aggregation group of plans plus
any other plan or plans of the employer which, when considered as a group with
the required aggregation group, would continue to satisfy the requirements of
Code Sections 401(a)(4) and 410.

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

       

      (e)           The
“required aggregation group” is (i) each qualified plan of the employer in which
at least one key employee participates or participated at any time during the
determination period (regardless of whether the plan has terminated), and (ii)
any other qualified plan of the employer which enables a plan described in
clause (i) to meet the requirements of Code Sections 401(a)(4) and
410(b).

       

      (f)           
For purposes of computing the top-heavy ratio, the “valuation date” shall be the
last day of the applicable plan year.

       

      (g)           For
purposes of establishing present value to compute the top-heavy ratio, any
benefit shall be discounted only for mortality and interest based on the
interest and mortality rates specified in the defined benefit plan(s), if
applicable.

       

      (h)           The
term “determination date” means, with respect to the initial plan year of a
plan, the last day of such plan year and, with respect to any other plan year of
a plan, the last day of the preceding plan year of such plan. The term
“applicable determination date” means, with respect to the Plan, the
determination date for the Plan Year of reference and, with respect to any other
plan, the determination date for any plan year of such plan which falls within
the same calendar year as the applicable determination date of the
Plan.

       

      XV.  DEFINITIONS

       

      As used
in this instrument, the following terms shall mean the following:

       

      (a)           ACCOUNT
means, with respect to each Participant, the aggregate value of his or her
Employer Stock Account and Other Investment Account.

       

      (b)           ADMINISTRATIVE
COMMITTEE means the person or persons designated by the Board of Directors to
act as such under Article XIII, provided, however, that if the Board of
Directors fails to appoint the Administrative Committee, the Compensation
Committee of the Board of Directors will serve as the Administrative
Committee.

       

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

       

      (d)           ANNIVERSARY
DATE means the 31st day of December each year.

       

      (e)           BANK
means Auburn Savings Bank, FSB.

       

      (f)           BENEFICIARY
means a person entitled to benefits hereunder as beneficiary of a deceased
Participant or as beneficiary of a deceased Beneficiary.

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

       

      (g)           BOARD
OF DIRECTORS means the Board of Directors of the Bank, as from time to time
constituted.

       

      (h)          
CODE means the Internal Revenue Code of 1986, as amended or replaced from time
to time.

       

      (i)           
COMPENSATION means, with respect to any Participant, total remuneration paid by
the Employer for a Plan Year. Compensation in excess of $225,000, as adjusted
for increases in the cost of living at the same time and in such manner as
permitted under Code Section 401(a)(17)(B), shall be disregarded. The
cost-of-living adjustment in effect for a calendar year applies to any period,
not exceeding 12 months, over which compensation is determined (determination
period) beginning with or within such calendar year. If a determination period
consists of fewer than 12 months, the annual compensation limit will be
multiplied by a fraction, the numerator of which is the number of months in the
determination period, and the denominator of which is 12. Compensation shall
include any amount which is contributed by the Bank pursuant to a salary
reduction agreement and which is not includible in the gross income of the
Employee under Code Sections 124, 132(f), 401(k), 402(h) and
403(b).

       

      (j)            
EMPLOYER STOCK means shares of the Bank’s voting common stock having a combined
voting power and dividend rights equal to or exceeding that class of the Bank’s
common stock having the greatest voting power and dividend rights.

       

      (k)           
EMPLOYER STOCK ACCOUNT means the account of a Participant which is credited with
the shares of Employer Stock purchased and paid for by the Trust or contributed
to the Trust.

       

      (l)           
 ERISA means the Employee Retirement Income Security Act of 1974, as
amended from time to time.

       

      (m)           ELIGIBLE
EMPLOYEE means any Employee other than (i) an Employee covered by a collective
bargaining agreement as to which retirement benefits were the subject of good
faith bargaining, (ii) an Employee who is a nonresident alien and who receives
no U.S. source income (iii) an individual who is not characterized by or treated
by the Bank as a common law employee of the Participating Employer, and (iv) an
individual hired on a temporary basis through a staffing or temporary agency. If
an individual described in clause (iii) is reclassified or deemed to be
reclassified as a common law employee of a Participating Employer and meets the
definition of an Eligible Employee, the individual will be eligible to
participate in the Plan as of the actual date of such reclassification (to the
extent such individual otherwise qualifies as an Eligible Employee). If the
effective date of reclassification is prior to the actual date of such
reclassification, in no event will the reclassified individual be eligible to
participate in the Plan retroactively to the effective date of such
reclassification. In no event shall a Leased Employee within the meaning of Code
Section 414(n) become an Eligible Employee until he or she is actually employed
by a Participating Employer.

       

      (n)           EMPLOYEE
means any individual employed by the Bank, (i) excluding independent contractors
and (ii) including a Leased Employee and any other individual required to be
treated as an employee pursuant to Code Sections 414(n) and 414(o).

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

       

      (o)           ENTRY
DATE means January 1 and July 1 of each Plan Year.

       

      (p)           FIDUCIARY
means any person who (i) exercises any discretionary authority or discretionary
control respecting management of the Plan or exercises any authority or control
respecting management or disposition of its assets, (ii) renders investment
advise for a fee or other compensation, direct or indirect, with respect to any
monies or other property of the Plan or has any authority or responsibility to
do so, or (iii) has any discretionary authority or discretionary responsibility
in the administration of the Plan, including, but not limited to, the Trustee,
the Employer and its representative body, and the Committee.

       

      (q)           FORFEITURE
means that portion of a Participant’s Account that is not vested, and occurs on
the earlier of (i) the distribution of the entire vested portion of a
Participant’s Account, or (ii) the last day of the Plan Year in which the
Participant incurs five (5) consecutive One-Year Breaks in Service. In the event
of a distribution under clause (i), in the case of a terminated Participant
whose vested benefit is zero, such Terminated Participant shall be deemed to
have received a distribution of his or her vested benefit upon his termination
of employment. In addition, the term Forfeiture shall also include amounts
deemed to be Forfeitures pursuant to any other provision of this
Plan.

       

      (r)           FORMER
PARTICIPANT means a person who has been a Participant, but who has ceased to be
a Participant for any reason.

       

      (s)           FUND
means the assets of the Plan as from time-to-time constituted.

       

      (t)           HIGHLY
COMPENSATED EMPLOYEE means any Employee who (i) was a five percent (5%) owner
(as defined in Code Section 416(i)(1)(B)(i)) of the Employer at any time during
the current or the preceding Plan Year, or (ii) for the preceding Plan Year, (A)
had compensation from the Employer in excess of $105,000 (as adjusted by the
Secretary pursuant to Code Section 415(d), and (B) if the Employer elects the
application of this clause for such preceding year, was in the top-paid group of
Employees for such preceding year. For this purpose, an Employee is in the
top-paid group of Employees for any year if such Employee is in the group
consisting of the top twenty percent (20%) of the Employees when ranked on the
basis of compensation paid during such year. A Former Employee shall be treated
as a highly compensated employee if he or she was a highly compensated employee
when he or she separated from service, or was a highly compensated employee at
any time after attaining age 55.

       

      (u)           HIGHLY
COMPENSATED PARTICIPANT means a Highly Compensated Employee who is eligible to
participate in the Plan.

       

      (v)           HOUR
OF SERVICE means:

       

      
        	 
      	
                (i)

              	
                each
      hour for which an Employee is directly or indirectly compensated or
      entitled to compensation by the Employer for the performance of duties
      during the applicable computation period;

              
	 	 	 
	 
      	
                (ii)

              	
                each
      hour for which an Employee is directly or indirectly compensated or
      entitled to compensation by the Employer (irrespective of whether the
      employment relationship has terminated) for reasons other than performance
      of duties (such as vacation, holidays, sickness, jury duty, disability,
      lay-off, military duty or leave of absence) during the applicable
      computation period;

              
	 	 	 
	 
      	
                (iii)

              	
                each
      hour for which back pay is awarded or agreed to by the Employer without
      regard to mitigation of damages.

              

      

       

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

       

      The same
Hours of Service shall not be credited both under (i) or (ii), as the case may
be, and under (iii).

      

      Despite
the forgoing, (x) no more than 501 Hours of Service are required to be credited
to an Employee on account of any single continuous period during which the
Employee performs no duties (whether or not such period occurs in a single
computation period); (y) an hour for which an Employee is directly or indirectly
paid, or entitled to payment, on account of a period during which no duties are
performed is not required to be credited to the Employee if such payment is made
or due under a plan maintained solely for the purpose of complying with
applicable worker’s compensation, or unemployment compensation or disability
insurance laws; and (z) Hours of Service are not required to be credited for a
payment which solely reimburses an Employee for medical or medically related
expenses incurred by the Employee.

       

      An Hour
of Service must be counted for purpose of determining a Year of Service, a year
of participation for purposes of accrued benefits, a One-Year Break in Service,
and employment commencement date (or reemployment commencement date). The
provisions of Department of Labor regulations Sections 2530.200b-2(b) and (c)
are incorporated herein by reference.

       

      (w)           NON-HIGHLY
COMPENSATED PARTICIPANT means any Participant who is not a Highly Compensated
Employee.

       

      (x)           NORMAL
RETIREMENT DATE means the Anniversary Date coinciding with or next following the
Participant’s Normal Retirement Age (65th birthday). A Participant shall become
fully Vested in his Account upon attaining his Normal Retirement
Age.

       

      (y)           ONE-YEAR
BREAK IN SERVICE shall mean the applicable computation period during which an
Employee has not completed more than 500 Hours of Service with the Employer.
Further, solely for the purpose of determining whether a Participant has
incurred a One-Year Break in Service, Hours of Service shall be recognized for
“authorized leaves of absence” and “maternity and paternity leaves of absence.”
An authorized leave of absence means an unpaid, temporary cessation from active
employment with the Employer pursuant to an established nondiscriminatory
policy, whether occasioned by illness, military service, or any other reason. A
“maternity or paternity leave of absence” shall mean an absence from work for
any period by reason of the Employee’s pregnancy, birth of the Employee’s child,
placement of a child with the Employee in connection with the adoption of such
child, or any absence for the purpose of caring for such child for a period
immediately following such birth or placement. For this purpose, Hours of
Service shall be credited for the computation period in which the absence from
work begins, only if credit therefore is necessary to prevent the Employee from
incurring a One-Year Break in Service, or, in any other case, in the immediately
following computation period. The Hours of Service credited for a “maternity or
paternity leave of absence” shall be those which would normally have been
credited but for such absence, or, in any case in which the Committee is unable
to determine such hours normally credited, eight (8) Hours of Service per day.
The total Hours of Service required to be credited for a “maternity or paternity
leave of absence” shall not exceed 501.

       

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

       

      (z)           
OTHER INVESTMENT ACCOUNT means the account of a Participant which is credited
with his share of the net gain (or loss) of the Plan, Forfeitures, and Employer
contributions in other than Employer Stock and which is debited with payments
made to pay for Employer Stock.

       

      (aa)          PARTICIPANT
means an Eligible Employee who participates in the Plan as provided in Article
II, and has not for any reason become ineligible to participate further in the
Plan.

       

      (bb)         PARTICIPATING
EMPLOYER means the Bank and any other Affiliated Employer that adopts this Plan
with the consent of the Board of Directors.

       

      (cc)          PLAN
means the Auburn Savings Bank, FSB Employee Stock Ownership Plan and Trust as
set forth in this instrument and as subsequently amended and/or
restated.

       

      (dd)         PLAN
YEAR means the calendar year.

       

      (ee)          REGULATION
means the Income Tax Regulations as promulgated by the Secretary of the Treasury
or his or her delegate, and as amended from time to time.

       

      (ff)           SUSPENSE
ACCOUNT means the separate account to which is credited shares of Employer Stock
pledged as collateral on a loan described in Section 4.4 prior to their
allocation to Participants’ Accounts.

       

      (gg)         DISABILITY
means a physical or mental condition of a Participant resulting from bodily
injury, disease, or mental disorder which renders him incapable of continuing
his usual and customary employment with the Employer. The disability of a
Participant shall be determined by a licensed physician chosen by the Committee.
The determination shall be applied uniformly to all Participants.

       

      (hh)         TRUST
means the trust established under Article VIII.

       

      (ii)           TRUSTEE
means the trustee of the Trust.

       

      (jj)           
VESTED means the non-forfeitable portion of a Participant’s
Account.

       

      (kk)          VALUATION
DATE means the last day of the Plan Year and each other date as of which the
Administrative Committee determines the investment experience of the Trust and
adjust Participants’ Accounts accordingly.

       

      (ll)           YEAR
OF SERVICE means the computation period of twelve (12) consecutive months
specified below during which an Employee has at least 1,000 Hours of Service
with the Bank or any Affiliated Employer.

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

       

      
        	 
      	
                (i)

              	
                For
      purposes of eligibility for participation in the Plan, the computation
      periods shall be measured from the date on which the Employee first
      performs an Hour of Service and anniversaries thereof. The participation
      computation periods beginning after a One-Year Break in Service shall be
      measured from the date on which an Employee again performs an Hour of
      Service and anniversaries thereof.

              
	 	 	 
	 
      	
                (ii)

              	
                For
      vesting purposes, the computation period shall be the Plan Year including
      periods prior to the Effective Date of the Plan.

              
	 	 	 
	 
      	
                (iii)

              	
                For
      all other purposes, the computation period shall be the Plan
      Year.

              

      

       

      XVI.  MISCELLANEOUS

       

      
        	
                 
      

              	
                16.1

              	
                EXCLUSIVE
      BENEFIT RULE

              

      

       

      No part
of the corpus or income of the Trust allocable to the Plan will be used for or
diverted to purposes other than for the exclusive benefit of each Participant
and Beneficiary, except as otherwise provided under the provisions of the Plan
relating to QDROs, the payment of reasonable expenses of administering the Plan,
the return of contributions upon non-deductibility or mistake of fact, the
return of certain excess contributions or the failure of the Plan to qualify
initially.

       

      
        	
                 
      

              	
                16.2

              	
                NON-TERMINABLE
      RIGHTS

              

      

       

      The
protections and rights afforded Participants under Section 4.4 pertaining to
certain restrictions on Employer Stock acquired with the proceeds of a loan and
Section 10.2 pertaining to put options shall be non-terminable. The protections
and rights with respect to Employer Stock acquired with the proceeds of an
exempt loan shall continue and not be abridged notwithstanding the eventual
repayment of the loan or the discontinuance of the Plan as an ESOP.

       

      
        	
                 
      

              	
                16.3

              	
                LIMITATION
      OF RIGHTS.

              

      

       

      Neither
the establishment of the Plan, nor any amendment thereof, nor the creation of
any fund or account, nor the payment of any benefits, will be construed as
giving to any Participant or other person any legal or equitable right against
the Bank, any Participating Employer, the Administrative Committee or the
Trustee, except as provided in this Plan, and in no event will the terms of
employment or service of any Participant be modified or in any way be affected
by his or her eligibility for or participation in the Plan. It is a condition of
the Plan, and each Participant expressly agrees by his or her participation,
that each Participant will look solely to the assets held in the Trust for the
payment of any benefit to which he or she is entitled under the
Plan.

       

      
        	
                 
      

              	
                16.4

              	
                NON-ALIENABILITY
      OF BENEFITS

              

      

       

      No
benefit provided under this Plan is subject to the voluntary or involuntary
alienation, assignment, garnishment, attachment, execution or levy of any kind,
and any attempt to cause such benefits to be so subjected will not be
recognized, unless (i) required by law, or (ii) the Administrative Committee
receives a QDRO that requires the payment of Plan benefits or the segregation of
any Account. In the case of a QDRO that is determined to be valid under the
Plan’s QDRO processing procedures, the Participant’s Account will be segregated,
and benefits will be paid, accord to its terms. Benefits provided to a
Participant may be offset pursuant to a judgment, order, decree, or settlement
agreement that satisfies the conditions of Code Section 401(a)(13)(C) and any
applicable spousal consent requirements under Code Sections 401(a)(13)(C) and
(D) are satisfied.

       

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

       

      
        	
                 
      

              	
                16.5

              	
                ADEQUACY
      OF DELIVERY

              

      

       

      Any
payment to be made under the Plan by the Trustee may be made by the Trustee’s
check. Mailing to a person or persons entitled to distributions hereunder at the
addresses designated by the Participating Employer or Administrative Committee
shall be adequate delivery by the Trustee of such distributions for all
purposes. If the whereabouts of a person entitled to benefits under the Plan
cannot be determined after diligent search by the Administrative Committee, the
committee may place the benefits in a federally insured, interest-bearing bank
account opened in the name of such person. Such action shall constitute a full
distribution of such benefits under the terms of the Plan.

       

      
        	
                 
      

              	
                16.6

              	
                SERVICE
      WITH ARMED FORCES

              

      

       

      If any
Participant leaves a Participating Employer to enter the Armed Forces of the
United States or the Merchant Marines of the United States, and he or she is
entitled to reemployment rights under the laws of the United States, his or her
departure will not be deemed a termination of his or her employment for the
purposes of this Plan, and he or she will be presumed to be on leave of absence,
provided he or she returns to work with a Participating Employer within the
period of time prescribed by laws after his or her discharge, without other
intervening employment. If the Participant fails to return and the Bank
terminates his or her employment, the Bank shall notify the Administrative
Committee, and the Participant’s employment shall be deemed to have terminated
on the date of receipt by the Administrative Committee of such notice. Despite
any contrary provision of the Plan, loans, contributions, benefits and service
credit with respect to qualified military service will be administered in
accordance with Code Section 414(u).

       

      
        	
                 
      

              	
                16.7

              	
                MERGER
      OR CONSOLIDATION

              

      

       

      In case
of any merger or consolidation of this Plan Trust with, or transfer of the
assets or liabilities of this Plan to any other plan and/or trust, the terms of
such merger, consolidation or transfer shall be such that each Participant would
receive (in the event of termination of this Plan or its successor immediately
thereafter) a benefit which is no less than he or she would have received in the
event of termination of this Plan immediately before such merger, consolidation
or transfer.

       

      
        	
                 
      

              	
                16.8

              	
                GOVERNING
      LAW

              

      

       

      The Plan
is construed, administered and enforced according to the laws of the State of
Maine to the extent not preempted by ERISA.

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

      

      IN
WITNESS WHEREOF, the Bank has executed the Plan and the Trustee(s) has or have
executed the Trust as of this 15th day of
August, 2008.

      

      
        	 
      	
                AUBURN
      SAVINGS BANK, FSB

              	 
      
	 	 	 
	 
      	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Allen T. Sterling

              	 
      
	 
      	 
      	
                Allen
      T. Sterling

              	 
      
	 
      	 
      	
                President
      & Chief Executive Officer

              	 
      
	 	 	 	 
	 
      	
                TRUSTEE(S)

              	 
      
	 
      	 
      	 
      	 
      
	 
      	/s/ Peter E. Chalke	 
      
	 
      	Peter
      E. Chalke, Trustee	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	/s/ M. Kelly Matzen	 
      
	 
      	M.
      Kelly Matzen, Trustee	 
      
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	 
      	/s/ Sharon Millet	 
      
	 
      	Sharon
      Millet, Trustee	 
      

      

       

       

      44

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