Document:

exv10w34

Exhibit 10.34

EXECUTION VERSION

CONFIDENTIAL

TRADEMARK LICENSE AGREEMENT

     This Trademark License Agreement (the “Agreement”) is made and entered into, by and
between Beijing SINA Internet Information Service Co., Ltd. (), a
limited liability company organized under the laws of the People’s Republic of China (hereinafter
“Licensor”) and Beijing Yisheng Leju Information Services Co., Ltd., a limited liability
company organized under the laws of the People’s Republic of China (“Licensee” and together
with Licensor, the “Parties” and each a “Party”) and is made effective as of the
Effective Date (defined below).

RECITALS

     WHEREAS, SINA Corporation, a company organized under the laws of the Cayman Islands
(“SINA”), and CRIC Holdings Limited, a company organized under the laws of the Cayman
Islands (“CRIC”), entered into that certain Share Purchase Agreement dated July 23, 2009
(the “Share Purchase Agreement”), pursuant to which SINA subscribes from CRIC the
Subscription Shares (as defined in the Share Purchase Agreement);

     WHEREAS, Licensor owns certain trademarks as more particularly described below that are
related to the Business which it desires to license to Licensee and Licensee desires to obtain a
license from Licensor to such trademarks to use in connection with its operation of the Business on
the terms and conditions set forth herein; and

     WHEREAS, Licensor and Shanghai SINA Leju Information Technology Co. Ltd. (“SINA Leju”)
entered into that certain Trademark License Agreement dated May 8, 2008 (the “Original
Agreement”) and (i) Licensor and SINA Leju desire to terminate the Original Agreement pursuant
to the Mutual Termination Agreement attached hereto as Exhibit B and (ii) Licensee and
Licensor desire to enter into this Agreement, on or prior to the consummation of the transactions
contemplated by the Share Purchase Agreement.

     NOW, THEREFORE, for and in consideration of the mutual covenants and agreement of the Parties
and the faithful performance thereof, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:

ARTICLE I

DEFINITIONS

     As used herein, the following terms shall have the meanings ascribed to them below.

     “Action” has the meaning set forth in Section 8.1.

     “Affiliate” means, when used with respect to any specified Person, a Person that
directly or indirectly through one or more intermediaries, controls, is controlled by, or is under
common control with, such specified Person. For the purposes of this definition, “control”
(including the terms “controlled by” and “under common control with”) with respect to the
relationship between or among two or more Persons, means the possession, directly or indirectly

 

 

or as trustee, personal representative or executor, of the power to direct or cause the
direction of the affairs or management of a Person, whether through the ownership of voting
securities, as trustee, personal representative or executor, by contract, credit arrangement or
otherwise.

     “Agency Agreement” means that certain Advertising Sale Agency Agreement by and between
SINA Corporation and China Online Housing Technology Corporation, dated as of the date hereof.

     “AIC” has the meaning set forth in Section 10.17.

     “Branding Guidelines” has the meaning set forth in Section 3.1.

     “Business” means an online real estate media platform in the PRC that (i) provides
information and updates related to real estate, home furnishing and construction in the PRC and
provides real estate, home furnishing and construction advertising services, and (ii) operates a
business-to-business and business-to-consumer Internet platform targeting participants in the PRC
real estate industry, in each case, as currently conducted or contemplated to be conducted on the
websites owned or operated by Licensee or any of Licensee’s Affiliates in the PRC.

     “Business Day” means any day that is not a Saturday, a Sunday or other day on which
banks are required or authorized by Law to be closed in Beijing.

     “Change of Control” means (i) the consummation of any acquisition or purchase,
directly or indirectly, by any Person or related group of Persons, that results in a Competitor
owning more ordinary shares in CRIC than E-House and SINA, and in each case, their respective
controlled Affiliates, own in the aggregate or (ii) an event pursuant to which a Competitor
acquires the right to nominate a member to the board of directors of CRIC.

     “Claimant” has the meaning set forth in Section 10.12.

     “Commission” has the meaning set forth in Section 10.12.

     “Competitor” means any Person whose business includes an online portal.

     “Confidential Information” has the meaning set forth in Section 9.1.

     “Dispute” has the meaning set forth in Section 10.12.

     “Effective Date” means the Closing Date as set forth in the Share Purchase Agreement.

     “E-House Licensed Data and Information” means the data and information licensed to
CRIC Holdings Limited and its subsidiaries, for the operation of the CRIC system pursuant to the
Master Transaction Agreement.

     “Exclusive Licensed Marks” means the following Trademarks:  and
, as identified on Exhibit A.

2

 

     “Governmental Authority” means any federal, national, supranational, state,
provincial, local or other government, governmental, regulatory or administrative authority, agency
or commission or any court, tribunal, or judicial or arbitral body.

     “Initial Term” has the meaning set forth in Section 6.1.

     “Law” means any federal, national, supranational, state, provincial, local or similar
statute, law or ordinance, regulation, rule, code, order, requirement or rule of law (including
common law).

     “Licensed Marks” means the Exclusive Licensed Marks and the Non-Exclusive Licensed
Marks, as listed on Exhibit A attached hereto.

     “Licensed Products” means products and services related to the Business which bear, or
are sold, provided or marketed under, a Licensed Mark.

     “Licensee Parties” has the meaning set forth in Section 8.1.

     “Licensee Websites” means the websites located at www.leju.com and the channels
located at house.sina.com.cn, jiaju.sina.com.cn and construction.sina.com.cn.

     “Licensor Parties” has the meaning set forth in Section 8.2.

     “Master Transaction Agreement” means the Master Transaction Agreement entered into by
and between E-House (China) Holdings Limited and CRIC Holdings Limited, dated as of July 27, 2009.

     “Non-Exclusive Licensed Marks” means the following Trademarks: sina, sina , and
, as identified on Exhibit A.

     “Person” means any individual, partnership, firm, corporation, limited liability
company, association, trust, unincorporated organization or other entity, as well as any syndicate
or group that would be deemed to be a person under Section 13(d)(3) of the Securities Exchange Act
of 1934, as amended.

     “PRC” or “Territory” means the People’s Republic of China, excluding Hong
Kong, Macau and Taiwan.

     “Recipient” has the meaning set forth in Section 9.1

     “Respondent” has the meaning set forth in Section 10.12.

     “Rules” has the meaning set forth in Section 10.12.

     “Shareholders Agreement” means that certain Shareholders Agreement by and among SINA
Corporation, E-House (China) Holdings Limited and CRIC Holdings Limited dated as of [ ], 2009.

3

 

     “Term” has the meaning set forth in Section 6.1.

     “Trademarks” means trademarks, service marks, domain names, trade dress, trade names,
corporate names, logos, designs, symbol, slogan and other identifiers of source or goodwill.

ARTICLE II

GRANT OF LICENSE

     2.1. Grant of License.

     (a) Subject to the terms and conditions of this Agreement, Licensor hereby grants to Licensee,
and Licensee hereby accepts from Licensor a non-exclusive, non-transferable (except as set forth in
Section 10.7), non-sublicensable (except as provided in Section 2.1(c)), limited right and license
to use the Non-Exclusive Licensed Marks in connection with the Business in the Territory during the
Term solely (i) on Licensed Products, (ii) on Licensee Websites, and (iii) in Licensee’s marketing
and advertising efforts and materials to promote such Licensed Products. Except as provided in
Section 2.2, Licensee’s use of the Non-Exclusive Licensed Marks under the terms of this Agreement
shall be free of any fees.

     (b) Subject to the terms and conditions of this Agreement, Licensor hereby grants to Licensee,
and Licensee hereby accepts from Licensor an exclusive, non-transferable (except as set forth in
Section 10.7), non-sublicensable (except as provided in Section 2.1(c)), limited right and license
to use the Exclusive Licensed Marks in connection with the Business in the Territory during the
Term solely (i) on Licensed Products, (ii) on Licensee Websites, and (iii) in Licensee’s marketing
and advertising efforts and materials to promote such Licensed Products. Except as provided in
Section 2.2, Licensee’s use of the Exclusive Licensed Marks under the terms of this Agreement shall
be free of any fees.

     (c) Licensor hereby acknowledges that Licensee owns all right, title and interest in and to
the “Leju ()” Trademark. Licensee hereby grants Licensor a non-exclusive, non-transferable,
non-sublicensable, limited right and license to use the “Leju ()” Trademark in connection with
the application(s) for the Exclusive Licensed Marks and maintaining registrations for the Exclusive
Licensed Marks resulting therefrom. All rights in and to the Leju Trademark not expressly granted
herein are hereby exclusively reserved by Licensee. Nothing in this Agreement shall preclude
Licensee, its Affiliates, or any of their respective successors or assigns from using or permitting
other Persons to use the Leju Trademark in any manner, or taking any action to enforce its or their
rights therein.

     (d) Notwithstanding anything in this Agreement to the contrary, Licensee has no right to
sublicense any rights granted hereunder to any third party, or otherwise permit any third party to
use any Licensed Marks; provided, however, that any rights granted to Licensee
hereunder with respect to the Licensed Marks may, without the prior consent of Licensor, be
sublicensed to SINA Leju and Licensee’s Affiliates that are controlled by SINA Leju solely for the
purpose of operating the Business in the Territory during the Term. All rights in and to the
Licensed Marks not expressly granted herein are hereby reserved exclusively by Licensor. Licensee
shall be responsible for the compliance of the terms and conditions of this Agreement

4

 

by all of its sublicensees. Without limiting the foregoing, in the event any sublicensee
undertakes any action (or inaction) that would be deemed a breach of this Agreement had Licensee
taken such action (or inaction), such action (or inaction) shall be deemed a breach by Licensee
under this Agreement.

     2.2. Fees. In the event E-House Research and Training Institute becomes entitled to
charge, invoice, or otherwise receive from, Licensee any royalties, fees or other remuneration for
use of the E-House Licensed Data and Information pursuant to amendments to the Master Transaction
Agreement or through other means, Licensor and Licensee shall use good faith efforts to amend this
Agreement such that Licensor becomes entitled to charge, invoice, or otherwise receive fees from
Licensee to use the Licensed Marks, such fees to be agreed upon by the Parties, provided
that (i) such fees shall be commercially reasonable and (ii) such fees shall not exceed the fees
charged by Licensor to unaffiliated third parties for use of the Licensed Marks, taking into
account any other consideration received by Licensor (including, but not limited to, discounted
services offerings from the third party).

     2.3. Usage Restrictions.

     (a) Licensee shall ensure that all uses of Licensed Marks are in compliance with the
requirements of this Agreement.

     (b) Without limiting the restriction set forth in Section 2.3(a), Licensee shall not (i) use
any Licensed Marks with any other Trademark so as to form a composite mark, or (ii) use any
Licensed Mark as an element of Licensee’s company name (except in the same manner in which such
Licensed Mark is used prior to the Effective Date, provided Licensee shall not misrepresent
its relationship or affiliation with Licensor).

     (c) Without Licensor’s prior written consent, Licensee shall not transfer (except as permitted
pursuant to Section 10.7) or create any security interest upon the Licensed Marks or this
Agreement.

     (d) Licensee shall not, nor authorize any other Person within Licensee’s control to, publicly
disseminate, distribute or use any Licensed Marks (i) on any products, packaging, labels,
advertisements or other materials that have not been previously approved or deemed approved by
Licensor (provided, however, that the use of the Licensed Marks in the same manner
used by Licensee prior to the Effective Date is deemed approved, provided Licensee shall
not misrepresent its relationship or affiliation with Licensor), or (ii) in connection with
sponsoring, endorsing or claiming any affiliation with Licensor, in each case of (i) and (ii),
without prior consultation with Licensor, including providing Licensor with samples, specimens or
descriptions thereof (provided, however, that the use of the Licensed Marks in the
same manner used by Licensee or SINA Leju prior to the Effective Date is deemed approved,
provided Licensee shall not misrepresent its relationship or affiliation with Licensor).
In the event that Licensor does not provide any objections or requests for modifications within ten
(10) days from receipt of such samples, specimens or descriptions, such use shall be deemed
approved. In the event that Licensor provides any reasonable objections or requests for
modifications, Licensee shall address such objections or requests for modifications to Licensor’s
reasonable satisfaction

5

 

prior to such public dissemination, distribution or use. Notwithstanding the foregoing,
nothing in this Section 2.3(d) shall limit Licensor’s rights under Article III of this Agreement.

     2.4. Territory Restrictions. Licensee’s use of the Licensed Marks shall be limited to
the Territory and Licensee shall not use or authorize the use of Licensed Marks in any manner,
directly or indirectly, outside the Territory. Licensor acknowledges that use by Licensee, or its
permitted sublicensees, of the Licensed Marks in connection with an internet site(s) featuring
content directed to end users in the Territory does not constitute use outside the Territory for
purposes of this Agreement.

     2.5. Licensor’s Use. Nothing in this Agreement shall preclude Licensor, its
Affiliates or any of their respective successors or assigns from using or permitting other Persons
to use the Licensed Marks, outside the Territory, in any manner, whether or not such entity
directly or indirectly competes or conflicts with Licensee, subject to the provisions of Section
4.1 (Non-Competition) of the Shareholders Agreement and Section 2.1(c) hereof.

ARTICLE III

QUALITY CONTROL

     3.1. Quality Control. In order to preserve the inherent value of the Licensed Marks,
Licensee shall ensure that the nature and quality of Licensed Products in connection with which
Licensee uses the Licensed Marks shall continue to be at least equal to the nature and quality of
the products and services offered in connection with the Business immediately prior to the
Effective Date. Licensee agrees to use the Licensed Marks in the Territory only in accordance with
such branding and style guidelines as used by the Business immediately prior to the Effective Date
or as otherwise may be established by Licensor in connection with its own business and communicated
in writing to Licensee from time to time or as may otherwise be agreed to by the Parties from time
to time (the “Branding Guidelines”), provided that Licensee shall be afforded the
same period of time to implement such Branding Guidelines as is afforded to Licensor’s Affiliates
and other third parties. In the event that Licensor reasonably determines that any use by Licensee
of the Licensed Marks is in violation of this Section 3.1, Licensee shall remedy such
non-conforming use as soon as practicable and if the use poses an immediate threat to the validity
or enforceability of the Licensed Marks or harm to Licensor’s business, reputation or goodwill,
Licensee shall, promptly following receipt of notice from Licensor, cease and desist all such
non-conforming uses.

     3.2 Compliance with Laws. Licensee shall ensure that the Business complies with all
applicable Laws in respect of operation, advertising and promotion of the Business and use of the
Licensed Marks in connection therewith.

ARTICLE IV

OWNERSHIP

     4.1. Ownership. Licensee acknowledges that Licensor is the owner of all right, title
and interest in and to the Licensed Marks, and all such right, title and interest shall remain
exclusively with Licensor. All goodwill and improved reputation generated by Licensee’s use of the
Licensed Marks shall inure solely to the benefit of Licensor. Licensee shall not knowingly

6

 

(a) use the Licensed Marks in any manner that tarnishes, degrades, disparages or reflects
adversely on Licensor or Licensor’s business or reputation, or which dilutes or otherwise harms the
value, reputation, or distinctiveness of the Licensed Marks or the goodwill of the Licensor
therein, (b) in any jurisdiction, file applications to register any Trademarks that consist of, in
whole or in part, or are confusingly similar to, any of the Licensed Marks, (c) contest, challenge
or otherwise make any claim or take any action adverse to Licensor’s ownership of or interest in
the Licensed Marks, (d) register any domain names that consist of, in whole or in part, or are
confusingly similar to any of the Licensed Marks, or register the Licensed Marks as a trade names
and/or company names for Licensee or any of its Affiliates, or (e) use, associate or link, in any
manner, any Licensed Marks in connection with any illegal materials, pornographic, obscene or
sexually explicit materials, materials of a violent nature, or politically sensitive materials. If
Licensee desires (i) the right to use any Trademark, other than the Licensed Marks, consisting of
or containing “SINA” (or ) or (ii) Licensor to apply for registration in the Territory of any
Trademark, other than the Licensed Marks, consisting of or containing “SINA” (or ), Licensee
and Licensor shall discuss such request in good faith and upon agreement of the Parties, Licensor
shall file such application and the schedule of Licensed Marks set forth on Exhibit A shall
be amended to include any such agreed-upon Trademarks.

     4.2. Prosecution and Maintenance.

     (a) As between Licensee and Licensor, Licensor shall have sole and exclusive discretion and
control with respect to prosecuting, obtaining, maintaining, renewing and protecting applications
and registrations for the Licensed Marks, and shall do so at its own cost and expense during the
Term. Licensor shall renew any registration for any Licensed Mark(s) that is scheduled to expire
during the Term and shall re-record this Agreement at the Trademark Office of China at such time
that Licensor renews such registration.

     (b) With respect to the Exclusive Licensed Marks () and
) Licensor shall diligently pursue the registration of such Licensed Marks. Once such Licensed Mark
is registered, Licensor shall record this Agreement at the Trademark Office of China as set forth
in Section 10.17.

ARTICLE V

ENFORCEMENT

     5.1. Notification. Each Party shall promptly notify the other Party in writing and
provide the other with all relevant background facts upon becoming aware of: (a) any use by a third
party of, or any application or registration by a third party for, any Trademark in the Territory
that does or may conflict with any of the Licensed Marks; or (b) any misuse or act by a third party
of infringement, dilution, misappropriation or unfair competition in the Territory involving any of
the Licensed Marks or any confusingly similar variant thereof.

     5.2. Licensor Enforcement.

     (a) Licensor shall have the right, but not the obligation, to take action against third
parties in the courts, administrative agencies or otherwise, at Licensor’s cost and expense, to
prevent or terminate misuse, infringement, dilution, misappropriation, imitation or illegal use of

7

 

the Licensed Marks and to oppose or cancel applications or registrations for any Trademarks
that conflict with any of the Licensed Marks, or to defend the Licensed Marks.

     (b) Licensee shall reasonably cooperate with Licensor at Licensor’s expense in any action,
suit or proceeding that the Licensor may undertake under this Section 5.2 (including without
limitation, executing, filing and delivering all documents and evidence reasonably requested by the
Licensor) and shall lend its name to such action, suit or proceeding if reasonably requested by the
Licensor or required by applicable Law. The Licensee shall have the right to participate and be
represented in any such action, suit or proceeding by its own counsel at its own expense.

     (c) All damages or other compensation of any kind recovered in any action, suit or proceeding
undertaken under this Article V, or from any settlement or compromise thereof, shall be for the
benefit of the Licensor, provided, however, that any compensation granted or
awarded in light of any losses incurred by Licensee shall be for the benefit of the Licensee after
Licensor’s reasonable expenses for taking such action, suit or proceeding have been paid.

ARTICLE VI

TERM AND TERMINATION

     6.1. Term. The initial term of this Agreement (the “Initial Term”) shall
commence on the Effective Date and shall continue for a period of ten (10) years thereafter.
Beginning twelve (12) months prior to the expiration of the Initial Term, the Parties shall use
good faith efforts to negotiate an extension of the term of this Agreement (the Initial Term
together with any applicable extension, the “Term”).

     6.2. Termination for Bankruptcy. Either Party may immediately terminate this
Agreement in the event that the other Party (a) becomes insolvent or unable to pay its debts as
they mature; (b) makes an assignment for the benefit of its creditors; (c) seeks relief, or if
proceedings are commenced against such other Party or on its behalf, under any bankruptcy,
insolvency or debtors’ relief law and such proceedings have not been vacated or set aside within
seven (7) days from the date of commencement thereof.

     6.3. Termination for Breach.

     (a) By Licensor. Licensor may terminate this Agreement at any time in the event that
Licensee is in material default or breach of any provision of this Agreement, and, if such default
or breach is capable of cure, such default or breach continues uncured for a period of thirty (30)
days after receipt of written notice thereof; provided, however, that in the event
that Licensee has in good faith commenced cure within such thirty (30) day period, but cannot
practically complete such cure within such thirty (30) day period, the Parties shall negotiate a
reasonable additional time to cure.

     (b) By Licensee. Licensee may terminate this Agreement at any time in the event that
the Licensor is in material default or breach of any provision of this Agreement, and, if such
default or breach is capable of cure, such default or breach continues uncured for a period of
thirty (30) days after receipt of written notice thereof; provided, however, that
in the event that

8

 

the Licensor has in good faith commenced cure within such thirty (30) day period, but cannot
practically complete such cure within such thirty (30) day period, the Parties shall negotiate a
reasonable additional time to cure.

     6.4. Termination for a Change of Control. Licensor may terminate this Agreement by
providing prior written notice to Licensee upon the occurrence of a Change of Control.

     6.5. Termination in the Event of Termination of Agency Agreement. In the event that
the Agency Agreement is terminated pursuant to Section 9.02(c)(iii) or 9.02(d)(i) thereof, this
Agreement shall automatically be terminated as of the effective date of the termination of the
Agency Agreement and shall thereafter be of no further force or effect except as set forth in
Section 6.7.

     6.6. Effect of Termination. Upon termination (but not expiration) of this Agreement
for any reason, Licensee shall be entitled to use the Licensed Marks for a limited period of time,
not to exceed ninety (90) days, during which it shall diligently work to transition to another
solution. Upon expiration of this Agreement or such 90-day period, (a) all rights granted to
Licensee under this Agreement with respect to the Licensed Marks shall immediately cease, and (b)
Licensee shall immediately discontinue all use of the Licensed Marks.

     6.7. Survival. The duties and obligations of the Parties under Articles IV, VI, VIII,
IX and X and Sections 2.1(c) and 7.2 of this Agreement shall survive any termination or expiration
of this Agreement.

ARTICLE VII

REPRESENTATIONS AND WARRANTIES

     7.1. Representations and Warranties.

     (a) By Each Party. Each of Licensee and Licensor represents and warrants to each
other Party that: (a) it is a corporation duly incorporated, validly existing and in good standing
under applicable Law; (b) the execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated hereby are within its corporate powers; (c) it has
taken necessary steps to obtain authority and all necessary consents and approvals of any other
third party or Governmental Authority to execute and perform this Agreement; (d) this Agreement has
been duly executed and delivered by it and constitutes its valid and binding obligation,
enforceable against it in accordance with its terms, except as such enforceability may be limited
by bankruptcy, insolvency, reorganization, or other laws affecting the rights of creditors’
generally or by general principals of equity; and (e) the execution, delivery and performance of
this Agreement will not conflict with or result in any breach of its charter or certificate of
incorporation, bylaws, or other governing document, or any instrument, obligation, or contract to
which it or its properties is bound.

     (b) By Licensor. Licensor represents and warrants that:

     i. It has the right to grant the licenses granted to Licensee hereunder; and

9

 

     ii. The Licensed Marks are, and the rights granted hereunder in connection with the
Licensed Marks are, substantially similar to the rights that were granted to SINA Leju prior
to the Effective Date.

     7.2. Disclaimer. LICENSEE HEREBY ACKNOWLEDGES AND AGREES THAT, EXCEPT AS EXPRESSLY
SET FORTH HEREIN OR IN THE SHARE PURCHASE AGREEMENT, THE LICENSED MARKS ARE PROVIDED WITHOUT
WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, WARRANTIES OF
MERCHANTABILITY, VALIDITY, NONINFRINGEMENT, FITNESS FOR A PARTICULAR PURPOSE OR OTHER WARRANTIES,
WHETHER EXPRESS OR IMPLIED, AND LICENSOR HEREBY DISCLAIMS ANY AND ALL SUCH WARRANTIES.

ARTICLE VIII

INDEMNIFICATION

     8.1. Indemnification by Licensor. Licensor shall defend, indemnify and hold harmless
Licensee and its Affiliates, and their respective officers, directors, employees, agents,
shareholders, successors and assigns, (collectively, the “Licensee Parties”) from and
against any claim, suit, demand or action (“Action”), and any and all direct losses
suffered or incurred by Licensee in connection with any third party claims (a) arising out of or
resulting from any breach by Licensor of any provision of this Agreement or (b) that use of the
Licensed Marks by Licensee in accordance with the terms and conditions of this Agreement infringes
or otherwise violates a third party’s Trademarks. Licensor’s obligation to indemnify Licensee
shall be conditioned on (a) Licensee’s provision to Licensor of prompt notice of such an Action
(except where any delay does not materially prejudice Licensor); (b) Licensee’s reasonable
cooperation with Licensor in the defense and settlement of such an Action at Licensor’s cost; and
(c) Licensor having exclusive control of the defense, settlement and/or compromise of such an
Action (provided that Licensor may not settle any Action in a manner that adversely affects
Licensee without Licensee’s prior written consent, not to be unreasonably withheld or delayed).

     8.2. Indemnification by Licensee. Licensee shall defend, indemnify and hold harmless
Licensor and its Affiliates, and their respective officers, directors, employees, agents,
shareholders, successors and assigns, (collectively, the “Licensor Parties”) from and
against any Action, and any and all direct losses suffered or incurred by Licensor in connection
with any third party claims (a) arising out of or resulting from any breach by Licensee of any
provision of this Agreement, or (b) alleging actual or alleged defects in or intellectual property
infringement (other than Trademark infringement based on the Licensed Marks) by any Licensed
Products. Licensee’s obligation to indemnify Licensor shall be conditioned on (a) Licensor’s
provision to Licensee of prompt notice of such an Action (except where any delay does not
materially prejudice Licensee); (b) Licensor’s reasonable cooperation with Licensee in the defense
and settlement of such an Action at Licensee’s cost; and (c) Licensee having exclusive control of
the defense, settlement and/or compromise of such an Action (provided that Licensee may not settle
any Action in a manner that adversely affects Licensor without Licensor’s prior written consent,
not to be unreasonably withheld or delayed).

10

 

ARTICLE IX

CONFIDENTIALITY

     9.1. Confidential Information. In performing its obligations under this Agreement,
either Party (the “Recipient”) may obtain certain Confidential Information of the other
Party. For purposes of this Agreement, “Confidential Information” shall mean information,
documents and other tangible things, provided by either Party to the other, in whatever form,
relating to such Party’s business and marketing, including such Party’s financial information,
personal information, customer lists, product plans and marketing plans, whether alone or in its
compiled form and whether marked as confidential or not. The Recipient shall maintain in
confidence all Confidential Information and shall not disclose such Confidential Information to any
third party without the express written consent of the other Party except to those of its
employees, subcontractors, consultants, representatives and agents as are necessary in connection
with activities as contemplated by this Agreement. In maintaining the confidentiality of
Confidential Information, the Recipient shall exercise the same degree of care that it exercises
with its own confidential information, and in no event less than a reasonable degree of care. The
Recipient shall ensure that each of its employees, subcontractors, consultants, representatives and
agents holds in confidence and makes no use of the Confidential Information for any purpose other
than those permitted under this Agreement or otherwise required by applicable Law. Upon request by
the other Party, the Recipient shall return, destroy or otherwise handle as instructed by the other
Party, any documents or software containing such Confidential Information, and shall not continue
to use such Confidential Information.

     9.2. Exceptions. The obligation of confidentiality contained in Section 9.1 shall not
apply to the extent that (a) the Recipient is required to disclose information by order or
regulation of a Governmental Authority or a court of competent jurisdiction; provided,
however, that, to the extent permitted by applicable Law, the Recipient shall not make any
such disclosure without first notifying the other Party and allowing the other Party a reasonable
opportunity to seek injunctive relief from (or a protective order with respect to) the obligation
to make such disclosure; or (b) the Recipient can demonstrate that (i) the disclosed information
was at the time of such disclosure to the Recipient already in (or thereafter enters) the public
domain other than as a result of actions of the Recipient, its directors, officers, employees or
agents in violation hereof, (ii) the disclosed information was rightfully known to the Recipient
prior to the date of disclosure (other than pursuant to disclosure by the other Party pursuant to
other agreements in effect between the Parties), or (iii) the disclosed information was received by
the Recipient on an unrestricted basis from a source unrelated to any Party and not under a duty of
confidentiality to the other Party.

ARTICLE X

GENERAL PROVISIONS

     10.1. Taxes. Each Party shall be responsible for taxes that should be borne by it in
accordance with applicable Law. If any Party pays any taxes that should have been borne by the
other Party in accordance with Law, such other Party shall reimburse such Party within seven (7)
days after its receipt of documentation evidencing such tax payment so incurred by such Party.

11

 

     10.2. Expenses. Except as otherwise specified in this Agreement, all costs and
expenses, including, fees and disbursements of counsel, financial advisors and accountants,
incurred in connection with this Agreement and the transactions contemplated by this Agreement
shall be borne by the party incurring such costs and expenses, whether or not the Closing shall
have occurred.

     10.3. Notices. All notices, requests, claims, demands and other communications
hereunder shall be in writing and shall be deemed duly given, made or received (i) on the date of
delivery if delivered in person or by messenger service, (ii) on the date of confirmation of
receipt of transmission by facsimile (or, the first (1st) Business Day following such
receipt if (a) such date of confirmation is not a Business Day or (b) confirmation of receipt is
given after 5:00 p.m., Beijing time) or (iii) on the date of confirmation of receipt if delivered
by an internationally recognized overnight courier service or registered or certified mail (or, the
first (1st) Business Day following such receipt if (a) such date of confirmation is not
a Business Day or (b) confirmation of receipt is given after 5:00 p.m., Beijing time) to the
respective parties hereto at the following addresses (or at such other address for a party as shall
be specified in a notice given in accordance with this Section 10.3):

     if to Licensor:

SINA Corporation

20/F Beijing Ideal International Plaza

No. 58 Northwest 4th Ring Road

Haidian District, Beijing, 100090

People’s Republic of China

Facsimile: +86 10 8260 7166

Attention: Head of Legal Department (Xie Guomin)

with a copy (which shall not constitute notice) to:

Shearman & Sterling LLP

12th Floor East Tower, Twin Towers

B-12 Jianguomenwai Dajie

Beijing 100022

People’s Republic of China

Facsimile: +86 10 6563 6001

Attention: Lee Edwards, Esq.

     if to Licensee:

Beijing Yisheng Leju Information Services Co., Ltd.

c/o CRIC Holdings Limited

No. 383 Guangyan Road

Shanghai 200072

People’s Republic of China

Facsimile: + 86 (21) 6086 7111

Attention: President

12

 

with a copy (which shall not constitute notice) to:

Skadden, Arps, Slate, Meagher & Flom

42/F, Edinburgh Tower, The Landmark

12 Queen’s Road Central, Hong Kong

Facsimile: +852 3740 4727

Attention: Jonathan B. Stone, Esq. and Z. Julie Gao, Esq.

     10.4. Public Announcements. Other than (i) the filing with the SEC of the Form F-1,
any amendments thereto and any other documents filed in connection with the Form F-1, including the
filing of this Agreement or (ii) any communications with the relevant stock exchange or regulators
in connection with the IPO, in each case, as deemed necessary or desirable in the sole discretion
of CRIC, neither party to this Agreement shall make, or cause to be made, any press release or
public announcement in respect of this Agreement or the transactions contemplated by this Agreement
or otherwise communicate with any news media without the prior written consent of the other party
unless otherwise required by Law or applicable stock exchange regulation, and the parties to this
Agreement shall cooperate as to the timing and contents of any such press release, public
announcement or communication.

     10.5. Severability. If any term or other provision of this Agreement is invalid,
illegal or incapable of being enforced by any Law or public policy, all other terms and provisions
of this Agreement shall nevertheless remain in full force and effect for so long as the economic or
legal substance of the transactions contemplated by this Agreement is not affected in any manner
materially adverse to either party hereto. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in
good faith to modify this Agreement so as to effect the original intent of the parties as closely
as possible in an acceptable manner in order that the transactions contemplated by this Agreement
are consummated as originally contemplated to the greatest extent possible.

     10.6. Entire Agreement. This Agreement constitutes the entire agreement of the
Parties hereto with respect to the subject matter hereof and supersedes all prior agreements and
understandings, both written and oral, with respect to the subject matter hereof and thereto
(including the Original Agreement).

     10.7. Assignment. This Agreement and any rights or authority granted hereunder shall
not be assigned or transferred by either Party, including by operation of law, merger or otherwise,
without the express written consent of the other Party, provided that Licensor may assign
this Agreement without consent to any of its Affiliates and Licensee may assign this Agreement
without consent to SINA Leju or an Affiliate of Licensee that is controlled by SINA Leju.

     10.8. Amendment. This Agreement may not be amended or modified except (a) by an
instrument in writing signed by, or on behalf of, both Parties or (b) by a waiver in accordance
with Section 10.09.

     10.9. Waiver. Either Party may (a) extend the time for the performance of any of the
obligations or other acts of the other Party, (b) waive any inaccuracies in the

13

 

representations and warranties of the other Party contained herein or in any document
delivered by the other party pursuant hereto or (c) waive compliance with any of the agreements of
the other Party or conditions to such Party’s obligations contained herein. Any such extension or
waiver shall be valid only if set forth in an instrument in writing signed by the Party to be bound
thereby. No waiver of any representation, warranty, agreement, condition or obligation granted
pursuant to this Section 10.09 or otherwise in accordance with this Agreement shall be construed as
a waiver of any prior or subsequent breach of such representation, warranty, agreement, condition
or obligation or any other representation, warranty, agreement, condition or obligation. The
failure of either party hereto to assert any of its rights hereunder shall not constitute a waiver
of any of such rights.

     10.10. No Third Party Beneficiaries. Except for the provisions of Article VII
relating to indemnified parties, this Agreement shall be binding upon and inure solely to the
benefit of the Parties and their respective successors and permitted assigns and nothing herein,
express or implied (including the provisions of Article VII relating to indemnified parties), is
intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy
of any nature whatsoever, including any rights of employment for any specified period, under or by
reason of this Agreement.

     10.11. Governing Law. This Agreement and any dispute or claim arising out of or in
connection with it or its subject matter shall be governed by, and construed in accordance with,
the laws of the People’s Republic of China (without regard to its conflicts of laws rules that
would mandate the application of the laws of another jurisdiction).

     10.12. Dispute Resolution. (a) Any dispute, controversy or claim arising out of or
relating to this Agreement, or the breach, termination or invalidity thereof (each, a
“Dispute”), shall to the extent possible be settled through friendly consultation among the
Parties hereto. The claiming Party (the “Claimant”) shall promptly notify the other Party
(the “Respondent”) in a dated written notice that a Dispute has arisen and describe the
nature of the Dispute. Any Dispute which remains unresolved within sixty (60) days after the date
of such written notice shall be submitted to the China International Economic and Trade Arbitration
Commission (the “Commission”) to be finally settled by arbitration in Beijing, PRC in
accordance with the Commission’s then effective rules (the “Rules”) and this Section 10.12.
The language of the arbitration shall be Mandarin Chinese.

     (b) The arbitration tribunal shall consist of three (3) arbitrators. The Claimant shall
appoint one (1) arbitrator, the Respondent shall appoint one (1) arbitrator, and the two (2)
arbitrators so appointed shall appoint a third arbitrator. If the Claimant and the Respondent fail
to appoint one (1) arbitrator, or the two (2) arbitrators appointed fail to appoint the third
arbitrator within the time periods set by the then effective Rules, the relevant appointment shall
be made promptly by the Commission.

     (c) Any award of the arbitration tribunal established pursuant to this Section 10.12 shall be
final and binding upon the Parties, and enforceable in any court of competent jurisdiction. The
Parties shall use their best efforts to effect the prompt execution of any such award and shall
render whatever assistance as may be necessary to this end. The prevailing Party (as determined by
the arbitrators) shall be entitled to reimbursement of its costs

14

 

and expenses, including reasonable attorney’s fees, incurred in connection with the arbitration
and any judicial enforcement, unless the arbitrators determine that it would be manifestly unfair
to honor this agreement of the Parties and determine a different allocation of costs.

     (d) The foregoing provisions in this Section 10.12 shall not preclude any Party from seeking
interim or conservatory remedies, including injunctive relief, from any court having jurisdiction
to grant such relief.

     10.13. No Presumption. The Parties acknowledge that each has been represented by
counsel in connection with this Agreement and the transactions contemplated by this Agreement.
Accordingly, any applicable Law that would require interpretation of any claimed ambiguities in
this Agreement against the Party that drafted it has no application and is expressly waived. If
any claim is made by a Party relating to any conflict, omission or ambiguity in the provisions of
this Agreement, no presumption or burden of proof or persuasion will be implied because this
Agreement was prepared by or at the request of any Party or its counsel.

     10.14. Specific Performance. The parties hereto acknowledge and agree that
irreparable damage would occur if any of the provisions of this Agreement are not performed in
accordance with their specific terms and that any breach of this Agreement could not be adequately
compensated in all cases by monetary damages alone. Accordingly, in addition to any other right or
remedy to which a party hereto may be entitled, at law or in equity, it shall be entitled to
enforce any provision of this Agreement by a decree of specific performance and to temporary,
preliminary and permanent injunctive relief to prevent breaches or threatened breaches of any of
the provisions of this Agreement, without posting any bond or other undertaking.

     10.15. Force Majeure. Neither Party shall be liable for failure to perform any of its
obligations under this Agreement during any period in which such Party cannot perform due to hacker
attack, fire, flood or other natural disaster, war, embargo, riot or the intervention of any
Governmental Authority, provided, however, that the Party so delayed immediately
notifies the other Party of such delay. In no event shall such nonperformance by Licensee be
excused due to any such event for longer than ninety (90) days.

     10.16. Counterparts. This Agreement may be executed and delivered (including by
facsimile transmission) in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which when executed shall be deemed to be an original, but all of
which taken together shall constitute one and the same agreement.

     10.17. Governmental Recordation. Licensor shall record this Agreement at the
Trademark Office of China within three (3) months after the Effective Date of this Agreement. The
Parties agree to work together in good faith to modify this Agreement or enter into one or more new
trademark license agreements subordinate to this Agreement as necessary in order to obtain such
recordation. In the event of any conflict or inconsistency between any provision of such new
trademark license agreement and the provisions set forth in the body of this Agreement, the
provisions set forth in this Agreement shall control and govern. If required by local
Administration for Industry and Commerce (“AIC”), each Party shall also file a copy of this
Agreement with the local AIC above the county level respectively where such Party domiciles.

15

 

     10.18. Termination of Original Agreement. Pursuant to the Mutual Termination
Agreement set forth in Exhibit B attached hereto, the Original Agreement shall be
terminated as of the Effective Date. Notwithstanding anything in this Agreement to the contrary,
this Agreement shall not become effective unless and until the Mutual Termination Agreement set
forth in Exhibit B is executed.

[SIGNATURES ON NEXT PAGE]

16

 

     IN WITNESS WHEREOF, each Party hereto has caused this Agreement to be executed by its duly
authorized representatives on the date first set forth above.

	 	 	 	 	 
	 	Beijing SINA Internet Information Service Co., Ltd.

 	 
	 	
By:  	/s/ Charles Chao 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	
Beijing Yisheng Leju Information Services Co., Ltd.

 	 
	 	
By:  	/s/ Fei Cao 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

17

 

	 	 	 	 	 

EXHIBIT A

LICENSED MARKS

NON-EXCLUSIVE LICENSED MARKS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Registration	 	Registration/	 	 
	 	 	Status	 	Period/Application Date	 	Application No.	 	Category
	sina
	 	Registered	 	10/21/2000 — 10/20/2010	 	1463676	 	35
	sina 
	 	Registered	 	10/14/2000 — 10/13/2010	 	1459585	 	35
	
	 	Registered	 	10/21/2000 — 10/20/2010	 	1463781	 	35

EXCLUSIVE LICENSED MARKS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Registration	 	Registration/	 	 
	 	 	Status	 	Period/Application Date	 	Application No.	 	Category
	

	 	Application
	 	12/18/2008
	 	 	7120368	 	 	 	35	 
	

	 	Application
	 	12/18/2008
	 	 	7120374	 	 	 	35	 

18

 

EXHIBIT B

MUTUAL TERMINATION AGREEMENT

     THIS MUTUAL TERMINATION AGREEMENT (“Termination Agreement”) is made and entered into
this            day of                               , 2009, by and between Beijing SINA Internet Information Service Co.
(“Beijing SINA”) and Shanghai SINA Leju Information Technology Co. Ltd. (“SINA
Leju”).

WITNESSETH:

     WHEREAS, Beijing SINA and SINA Leju entered into that certain Trademark License Agreement
dated May 8, 2008 (the “Original Agreement”); and

     WHEREAS, Beijing SINA and SINA Leju desire to mutually terminate the Original Agreement
effective as of the date of this Termination Agreement.

     NOW, THEREFORE, in consideration of the mutual covenants and conditions contained herein, and
other good and valuable consideration, receipt of which is hereby acknowledged by each of the
parties hereto, the parties agree as follows:

     1. Beijing SINA and SINA Leju agree that, upon the date of execution of this Termination
Agreement, the Agreement shall terminate and be of no further force or effect, and, for the
avoidance of doubt, no provisions of the Original Agreement survive such termination.

     2. This Termination Agreement represents the complete, integrated, and entire agreement
between the parties, and may not be modified except in writing signed by the parties.

     3. This Termination Agreement shall be governed by the laws of the PRC, without regard to
conflicts of law principles.

     4. This Termination Agreement may be executed in one or more counterparts, each of which shall
be deemed an original but all of which together will constitute one and the same instrument.

     5. This Termination Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns.

[SIGNATURES ON NEXT PAGE]

19

 

     IN WITNESS WHEREOF, the undersigned have executed this Termination Agreement as of the date
first set forth above.

	 	 	 	 	 
	 	Beijing SINA Internet Information Service Co., Ltd.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Shanghai SINA Leju Information Technology Co. Ltd.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

20exv4w1

F.N.B. CORPORATION

PROGRESS SAVINGS 401(K) PLAN

As Amended and Restated 

Effective
January 1, 2007

 

 

Table of Contents

	 	 	 	 
	Quick-Reference Information
	 	next page
	Welcome To The Plan!
	 	 	1
	How You Get Into The Plan
	 	 	2
	401(K) Contributions
	 	 	3
	Matching Contributions
	 	 	4
	Additional Employer Contributions
	 	 	5
	Rollovers
	 	 	5
	 
	 	 	 
	What Happens To The Money While It’s In The Plan
	 	 	6
	Making Your Own Investment Decisions
	 	 	8
	 
	 	 	 
	When You Retire Or Terminate Employment
	 	 	9
	When Payment Is Actually Made
	 	 	11
	How Payment Is Made
	 	 	12
	How To Claim Your Money
	 	 	14
	Payment Before Termination Of Employment
	 	 	14
	Borrowing Money From Your Accounts
	 	 	15
	In Case Of Death
	 	 	17
	 
	 	 	 
	Child Support, Alimony and Property Division In Divorce
	 	 	18
	How The Length Of Your Service Is Calculated
	 	 	19
	When You Return From Military Service
	 	 	23
	What The Plan Administrator Does
	 	 	24
	What The Employer Does
	 	 	25
	Maximum Amounts Of 401(K) Contributions
	 	 	26
	Maximum Amount Of Matching Contributions
	 	 	30
	Maximum Amount Of Total Contributions
	 	 	30
	Improvements When The Plan Is Top-Heavy
	 	 	31
	What “Pay” Means
	 	 	33
	Miscellaneous
	 	 	34
	Special Provisions for New Members of the FNB Family
	 	 	38

 

 

Quick-Reference Information

Sponsor

F.N.B. Corporation

One F.N.B. Boulevard

Hermitage, PA 16148-3347

EIN: 25-1255406

Other Participating Employers

F.N.B. Capital Corporation, LLC (effective January 1, 2006)

First National Insurance Agency, LLC (formerly Gelvin, Jackson & Starr, Inc.)

First National Trust Company

Regency Finance Company

First National Bank of Pennsylvania

First National Investment Services Company, LLC

F.N.B. Investment Advisors, Inc.

Plan Administrator

F.N.B. Corporation Pension Committee

One F.N.B. Boulevard 

Hermitage, PA 16148-3347

Telephone Number: (724) 983-3446

Classification Of Employees Eligible To Get Into The Plan

All employees except for employees classified as temporary when hired (unless and until such a
temporary employee completes 1,000 hours of service within an eligibility computation period, as
explained later in the plan in the section called “How Your Length of Service Is Calculated”)

Minimum Age To Get Into The Plan

Age 21

Minimum Length Of Service To Get Into The Plan

None

Trustees

First National Trust Company

One F.N.B. Boulevard

Hermitage, PA 16148-3347

(with regard to F.N.B. Corporation common stock only)

 

 

Insurance Company

Prudential Retirement Insurance and Annuity Company

30 Scranton Office Park

Scranton, PA 18507-1789

Length Of Service Required For Benefits (Vesting Schedule)

	 	 	 	 	 
	less than 3 years of service 
	 	 	0	%
	3 years of service 
	 	 	100	%

Historical note: If you were a member of the plan before January 1, 2007, your vesting percentage
will never be less than it would have been under the vesting schedule that was in effect on
December 31, 2006 (which provided for 20% vesting after 1 year of service and 40% vesting after 2
years of service, for example).

Appeals Authority

F.N.B. Corporation Pension Committee

One F.N.B. Boulevard

Hermitage, PA 16148-3347

Telephone Number: (724) 983-3446

Plan Year Ends Every

December 31

Plan Number

002

 

 

Welcome to the Plan!

     Introduction. This is the 401(k) plan of the sponsor identified in the section called
“Quick-Reference Information.” This section will explain a little bit about what the plan
contains and how to find your way around.

Please note: This is the same plan that was established effective June 30, 1992. All
we have done is update it for changes in the law and re-write it to make it more
understandable. This edition of the plan is adopted conditional upon approval by the
Internal Revenue Service. Sometimes, the IRS asks for minor, technical changes in
order to give their approval, but if any such changes are made, we will let you
know.

     Individual accounts. Simply put, the plan consists of a series of individual accounts set
up for the employees who are in the plan (kind of like savings accounts). Each employee typically has at least
three accounts: a 401(k) account, a matching contribution account, and an additional employer
contribution account. If you roll money into this plan from another plan, you will also have a
rollover account. Finally, if you made after-tax employee contributions to this plan when such
contributions were permitted (before July 1, 2001), you will also have an after-tax employee
contribution account.

     ESOP Feature. Effective March 1, 2003, an employee stock ownership plan (“ESOP”) feature was
added to the plan. The technical definition of an ESOP is a “stock bonus plan which is qualified
under section 401(a) of the Code and which is designed to invest primarily in qualifying employer
securities.” This feature is included in the plan since F.N.B. Corporation common stock is one of
the investment options available under the plan (and since matching contributions under the plan
are automatically invested in shares of F.N.B. Corporation common stock).

     Contributions. Money goes into your 401(k) account if you choose to have some portion of your
pay contributed to the plan instead of paid to you in cash. If you do, the employer matches your
contributions (as described later in the plan); the matching contributions go into your matching
contribution account. Whether or not you choose to make 401(k) contributions, you may be eligible
for additional employer contributions of two types: automatic employer contributions and
performance-based employer contributions.

     Payments. While the money is in the plan, it is invested for your benefit. Although
contributions to your matching contribution account are automatically invested in shares of F.N.B.
Corporation common stock, the rest of the money in your accounts is invested in accordance with
your investment instructions. Then, after you leave the company, you are entitled to all of the
money in your 401(k) account, your rollover account and your after-tax employee contribution
account and, depending on the length of your service, you may be entitled to part or all of the
money in your matching contribution account and additional employer contribution account.

Please note: Federal law may require withholding or other taxes on the money that
you are paid from this plan. The plan administrator will naturally comply with any
such law. But for the sake of simplicity, we will say here in the plan that you will
receive “all the money.” Just keep in mind that “all the money” is before any
required withholding or other taxes.

     Plan and summary plan description. The plan document — that’s what this is — sets out the
rules for how and when you get into the plan, how and when money goes into your accounts, what
happens to the money while it’s in the plan, and how and when you can get the money out.

     This plan is written in simple, easy-to-understand language. It therefore serves as both the
plan document and the “summary plan description” required by federal law.

     Ordinary names. Throughout the plan, we will refer to things by their ordinary name. We will
call this plan simply “the plan.” We will call the sponsor of the plan, which is identified in
the section called

1

 

“Quick-Reference Information,” simply “the sponsor.” When we say “employer,” we mean the sponsor or
one of the other participating employers—whichever one employs you. When we say “you,” we mean you
the employee. When we say “Code,” we mean the federal Internal Revenue Code of 1986, as in effect
from time to time.

     There is one exception to this rule. From time to time, we will refer to your “pay” or
“compensation.” Unfortunately, those terms have highly technical meanings, which can change for
different purposes under the plan. The various technical definitions are set forth at the end of
the plan in the section called “What ‘Pay’Means.”

     Effective Date. The original effective date of the plan was June 30, 1992. This edition of
the plan takes effect on January 1, 2007. As an exception, there are a few provisions that took
effect on earlier dates, in order to comply with changes in the law, but they are clearly marked
in the text that follows.

     As of January 1, 2007, this edition of the plan completely supersedes and replaces the
previous edition of the plan. But, except for the special provisions that are effective on earlier
effective dates, this edition of the plan applies only to employees who were actively employed on
or after that date; the rights of employees who terminated before that date are governed by the
edition of the plan that was in effect when they terminated.

     Questions. If you have questions after you read about the plan, ask the plan administrator for
help. Better yet, jot the question down and give it to the plan administrator so that there is no
misunderstanding. We want to emphasize that only the plan administrator is authorized to interpret
and apply the plan. Don’t rely on what anyone else tells you, because no one except the plan
administrator can give you an answer that you can rely on.

How You Get into the Plan

     Introduction. Before you can get any benefit from the plan, you have to get into the plan.
This part of the plan document explains how you get in.

     The eligibility requirements. There are four requirements in order to be eligible to get
into the plan:

     4 First, you have to be shown on the books and records of the employer as an employee.
Independent contractors are not employees, nor are individuals whose services are leased from a
leasing organization (such as “temps”), so they are not eligible to get into the plan. If you are
not shown on the books and records of the employer as an employee, you are not eligible to get into
the plan, regardless of whether the employer’s determination is correct and regardless of how you
may be treated for any other purposes (such as employment tax purposes).

     4 Second, you must be shown on the books and records of the employer as employed in the
classification of employees identified at the beginning of the plan in the section called
“Quick-Reference Information” under the heading “Classification Of Employees Eligible To Get Into
The Plan.” If you are not shown on the books and records of the employer as employed in that
classification, you are not eligible to get into the plan, regardless of whether the employer’s
determination is correct and regardless of how you may be treated for any other purposes (such as
employment tax purposes).

     4 Third, you must have attained the age that is shown at the beginning of the plan in the
section called “Quick-Reference Information” under the heading “Minimum Age To Get Into The Plan.”

     4 Fourth, you must have worked for the employer for the period shown at the beginning of the
plan in the section called “Quick-Reference Information” under the heading “Minimum Length Of
Service To Get Into The Plan.” (To figure out whether you meet this requirement, see “How The
Length Of Your Service Is

2

 

Calculated,” later in the plan.)

     As soon as you meet all of those requirements at the same time, you are eligible to get into
the plan.

     Actually getting in—hired before January 1, 2006. For those who were hired before January 1,
2006, the fact that you are eligible doesn’t automatically mean you are in the plan, because the
plan administrator doesn’t necessarily know that you are eligible. To actually get in, you have to
get a form from the plan administrator, fill it out with your name, address and so forth, and then
turn it back in to the plan administrator.

     Once you are in the plan, you will see the 401(k) contributions on your pay advice and you
will start to get quarterly statements of your account under the plan. This is how you know that
you have officially gotten into the plan. If you don’t see the 401(k) contributions on your pay
advice and you don’t get quarterly statements of your account under the plan, be sure to check
with the plan administrator to make sure nothing has gone wrong.

     Once you meet the eligibility requirements and your form is on file with the plan
administrator, you get into the plan immediately.

     Actually
getting in—automatic enrollment for those hired on and after January 1, 2006. If you are hired on or after January 1, 2006, you will still receive an enrollment form from the plan
administrator, on which you can make your choice about whether to participate. But if you do not
complete and return the form to the plan administrator, you will automatically be enrolled in the
plan with 401(k) contributions of 2% of pay, as explained in the following section. If you do not
wish to be enrolled or you wish to have a 401(k) contribution other than 2% of pay, you must
complete and return the enrollment form indicating your wishes.

     Previous participants. Any employee who was a participant in the plan immediately prior to
the effective date of this edition of the plan may remain a participant, regardless of the
requirements listed above.

     If things change. If at any time you cease to be an employee of the employer or you cease to
be employed in the classification of employees who are eligible to get into the plan, then your
participation in the plan ceases immediately and automatically. If you later return to employment
with the employer in the classification of eligible employees, you will participate in the plan
again immediately. It may be necessary to sign a new authorization form, as described in the next
section.

     Of course, after you leave the plan, you may still be entitled to receive the money in your
account, either at that time or later. (We will discuss this later in the section entitled “When
You Retire or Terminate Employment”)

401(k) Contributions

     Introduction. You may have heard about plans called “401(k)” plans. That’s what this is. It
offers you the opportunity to have a portion of your pay contributed to the plan instead of paid
to you in cash. It is particularly attractive because, under the current federal income tax law,
you don’t pay federal income tax on the amount of pay that is contributed to the plan.

Please note: while free from federal income tax, these amounts are still subject to
Social Security tax (FICA) and state and local income tax in Pennsylvania and a few
other states.

     How much you can have. You can specify any whole percentage of your pay up to 50%, as long as
the dollar amount is not more than a dollar limit imposed by the government and shown on a table at
the end of the plan.

3

 

Historical note: The 50% limit was first effective in 2004. For 2003, the maximum
percentage was 20%. For years before 2003, the maximum percentage was 15%.

     As an exception, if you will reach age 50 (or more) before the end of the plan year, you may
make additional 401(k) contributions. These additional contributions are limited to a dollar amount
set by the government, which is $5,000 for 2006. These are called “catch-up” contributions, and
they are exempt from most of the rules that apply to 401(k) contributions. For example, they are
not taken into account when determining the maximum amount of 401(k) contributions, the maximum
amount of matching contributions, or the maximum amount of total contributions, nor for purposes of
the coverage and top-heavy requirements of the Code. Catch-up contributions must, however, comply
with the rules of section 414(v) of the Code and regulations issued under that section.

     How to do it. If you would like some portion of your pay contributed to the plan, you
complete a form authorizing the employer to reduce your pay by a certain percentage and, instead
of paying it to you in cash, to put that amount into your 401(k) account in the plan.

     There are several simple rules for making contributions by this method (these rules were
created by the IRS):

     4 You must sign an agreement with the employer to do this. (The plan administrator will
provide you with the forms on request.)

     4 The agreement only applies to pay that you earn after the agreement is signed. (In other
words, you can’t make this type of contribution retroactively).

     4 You can change your agreement at any time, but the change will take effect at the beginning
of the following pay period.

     4 You can terminate the agreement at any time by notifying the employer in writing, but the
agreement still applies to all pay that was earned while the
agreement was in effect. (In other
words, you can’t terminate the agreement retroactively.)

     Automatic
enrollment. For those hired on and after January 1, 2006, automatic enrollment
applies (as explained in the previous section) with a 401(k) contribution of 2% of pay. But by
using the method just described you may choose any other permissible amount, including zero.

     Reports. Whenever a contribution is made by this method, the employer will give you a written
confirmation of the amount and when it was added to your account (which may be your pay advice).
In the rest of this plan, we will call these “401(k) contributions.”

Matching Contributions

     Introduction. In order to encourage employees to have a portion of their pay contributed to
the plan (in other words, to encourage savings for retirement), the employer also agrees to make
an additional contribution to the plan on your behalf if you make 401(k) contributions. This is
called a matching contribution and it is an additional contribution on top of your pay.

     Amount of matching contribution. Specifically, the employer agrees to make an additional
contribution to the plan of 50¢ for every dollar of 401(k) contributions that you choose to make,
not counting 401(k) contributions over 6% of your pay and not counting catch-up contributions.
Therefore, the maximum matching contribution you can receive is equal to 3% of your pay. Matching
contributions are made at the end

4

 

of each payroll period of the employer. The 6% limit applies separately to pay received during
each pay period for which matching contributions are made, not on a cumulative basis during the
plan year.

     Cross-reference. So that it is not overlooked, we note here that the amount allocated to your
account can never be more than the amount described in the section called “Maximum Amount of Total
Contributions” or less than the amount described in the section called “Improvements When the Plan
Is Top-Heavy.”

     Reports. The employer’s matching contribution is added to your matching contribution account.
When the employer contributes in this manner, the plan administrator will notify you and tell you
how much was added to your matching contribution account (this may be on your quarterly statement
from the plan).

Additional Employer Contributions

     Introduction. Besides the matching contributions described in the preceding section,
effective January 1, 2007 the employer intends to make two additional types of contributions. This
section describes them. Please note that you are eligible for these contributions regardless of
whether you have chosen to make 401(k) contributions.

     Automatic employer contribution. After the end of each plan year, beginning with the plan year
of 2007, the employer intends to make a contribution equal to 2% of pay for each member of the plan
who was actively employed by the employer on the last day of the plan year (or who retired during
the plan year).

     Performance-based employer contribution. After the end of each year, beginning with the plan
year of 2007, the employer intends to make a contribution of up to 2% of pay (depending on the
extent to which the employer has achieved its performance goals for that plan year) for each
member of the plan who was actively employed by the employer on the last day of the plan year (or
who retired during the plan year).

     Form of Contribution. Contributions made under this section are made in common stock of the
sponsor. For information about when and how you can move the money to other investments, see the
sections “What Happens to the Money While It’s in the Plan” and “Making Your Own Investment
Decisions,” which follow shortly.

Rollovers

     Introduction. There is one other way that money can come into the plan for you. That is when
money is transferred from another plan. It is called a “rollover,” and this section will explain
how it works.

     Direct rollover. If you are entitled to get money from a 401(k), pension, profit sharing or
stock bonus plan, and it constitutes an “eligible rollover distribution” under the Code, that plan
must offer you the opportunity to have the money transferred directly to another plan (instead of
paid to you in cash) if you can find a plan that will take it. This plan will take a direct
transfer of that type, if all of the other rules of this section are met. (This is what the law
calls a “direct rollover.”)

     Indirect rollover. Instead of choosing a direct rollover from that other plan to this plan,
you may choose to take the money in cash from that other plan. If you do, and you get what the law
calls an “eligible rollover distribution,” you can still make a rollover to this plan if:

     4 you deliver a check to the plan administrator not later than the 60th day after you
received the money from the other plan, or

5

 

     4 you put the money in a “conduit” individual retirement account within 60 days after you
received the money from the other plan, and then transfer all of that money to this plan; and

     4 all of the other rules of this section are met.

     The rules of the Code for indirect rollovers are very strict and can be very tricky. This
plan does not attempt to explain those rules. You should consult the tax advisor of your choice.

     Rules applicable to both types of rollover. This plan will not accept any rollover that does
not comply with the requirements of the Code. Foremost among them is the requirement that the
rollover come from a 401(k), pension, profit sharing, stock bonus or annuity plan that is
qualified under section 401(a) or section 403(a) of the Code, an annuity contract meeting the
requirements of Section 403(b) of the Code, an eligible plan which meets the requirements of
section 457(b) of the Code and is maintained by a state, political subdivision of a state or any
agency or instrumentality of a state or political subdivision of a state, or an IRA meeting the
requirements of section 408(a) or section 408(b) of the Code.

     This plan will accept a rollover from a plan qualified under section 401(a) or section 403(a)
of the Code that includes after-tax employee contributions. A separate accounting will be kept for
those contributions since they have already been subject to federal income tax, and will not be
taxed again when they are distributed from this plan.

     This plan is set up to be generally exempt from the joint and survivor annuity rules of the
Code. This plan will not accept any transfer of assets from another plan if the effect would be to
make this a “transferee plan” subject to those rules.

     “In kind” rollovers (rollovers in the form of existing investments) are permitted only for
employees who previously participated in the Roger Bouchard Insurance, Inc. 401(k) Profit Sharing
Plan. All other rollovers must be made in the form of cash only.

     Approval of plan administrator. If you would like to make a rollover to this plan, call or
write the plan administrator, who can give you the detailed requirements and the forms. The plan
administrator has complete authority to deny any requested rollover if the person requesting the
rollover is unable or unwilling to satisfy the plan administrator that the rollover complies with
these rules and will not jeopardize the intended status and operation of the plan.

     Separate accounting. If the plan accepts a rollover on your behalf, that rollover will be put
into a separate account for you — separate from your 401(k) account and your matching contribution
account.

What Happens to the Money While It’s in the Plan

     Introduction. When money goes into the plan, it gets paid in cash to the trustee or insurance
company that are identified at the beginning of the plan in the section called “Quick-Reference
Information” under the headings “Trustee” and “Insurance Company.” A trust is a pool of money held
by an individual or company (such as a bank) who is called the “trustee.” Similarly, when
contributions are made in stock, ownership of the stock is transferred to the trustee or insurance
company.

     “Exclusive
benefit.” The trustee or insurance company holds the money for the exclusive benefit
of the employees in the plan—that is, exclusively for the purposes of providing benefits to
participants and beneficiaries of the plan and defraying the reasonable expenses of administering
the plan.

     Investments. Money held by a trustee is invested by the trustee in accordance with the terms
of the plan, as follows:

6

 

     401(k) accounts, after-tax employee contribution accounts and rollover accounts: You
exercise free choice among a number of different investment funds (as described in the following
section of the plan).

     Matching contribution accounts and additional employer contribution accounts. Matching
contributions and additional employer contributions are automatically invested in shares of common
stock of F.N.B. Corporation. This is a requirement of the plan, and neither the trustee nor the
plan administrator has any authority or discretion to invest those amounts in any other way. As an
exception, if you have become fully vested in all of your accounts under the plan, you are
permitted to direct that all or any portion of your matching contribution account be invested in
other investment options available under the plan (as described in the following section of the
plan).

Historical
note: In connection with a corporate reorganization that was effective
December 31, 2003 and the share exchange that occurred as part of that
reorganization, shares of stock in First National Bankshares of Florida became one
of the investment options available under the plan effective January 1, 2004. When
First National Bankshares of Florida was subsequently acquired by Fifth Third Bank,
all shares of stock in First National Bankshares of Florida were converted into
shares of stock in Fifth Third Bank. Therefore, if you were a participant in the
plan as of December 31, 2003, your account may continue to hold shares of stock in
Fifth Third Bank, but only until March 31, 2006, at which time investment in stock
of Fifth Third Bank will no longer be permitted and all amounts that remain
invested in stock of Fifth Third Bank will be directed instead to the first
investment option listed on Appendix A.

     Distribution of dividends. Cash dividends paid on shares of common stock in F.N.B.
Corporation held by the plan will be paid, in accordance with your choice, either (a) directly to
you in cash or (b) to the plan and reinvested in shares of stock in F.N.B. Corporation. Your
choice must be made in accordance with rules and procedures established by the sponsor, including
deadlines. If you do not make a proper choice by the deadline, all cash dividends on shares of
stock in F.N.B. Corporation held in your accounts under the plan will be automatically paid to the
plan and reinvested in shares of stock in F.N.B. Corporation for your
benefit. (All rules involving
participant elections with respect to cash dividends on shares of stock in F.N.B. Corporation held
by the plan will comply with section 404(k) of the Code.)

     Stock dividends on shares of stock in F.N.B. Corporation held by the plan will be paid into
the plan and allocated to the account in which the stock is held.

     Voting
rights on shares of common stock in F.N.B. Corporation. Under the plan, voting rights
with respect to shares of stock in F.N.B. Corporation are “passed through” to the participants in
the plan. This means that you are entitled to direct the manner in which the shares of F.N.B.
Corporation held in your accounts are voted on any matter put to a vote of the shareholders of the
corporation.

     Before each meeting of the shareholders, you will receive copies of any notices and any other
information provided to the shareholders, along with a form you can use to direct the trustee as
to how the shares of F.N.B. Corporation common stock held in your accounts under the plan are to
be voted. The trustee may establish a deadline by which your form must be received by the trustee
in order for your voting directions to be followed. If you do not return your form by the
deadline, the shares in your accounts under the plan will be voted in the same proportion as those
shares with respect to which the trustee has received proper directions by the deadline.

     Record keeping. Though the money is all pooled together for investment purposes, you still
have one or more individual accounts. The plan administrator is responsible for keeping track of
your individual accounts.

     The value of the investments of the plan is known every day, since all of the available
investment options are publicly traded mutual funds or stocks. But the IRS requires us to say here
that the plan

7

 

administrator will figure out the total value of the investments of the plan at least once a year,
as of the last day of the plan year.

     Return of contributions. Except for a few unusual circumstances, once the employer puts money
into the plan, the money can never come back to the employer. Here are the exceptions:

     4 If the employer made the contribution by mistake of fact, then it can be returned within 1
year after the contribution was made.

     4 All contributions by the employer are made on the condition that they are deductible by the
employer for federal income tax purposes. If any part of a contribution is disallowed, that part of
the contribution can be returned to the employer within 1 year after disallowance of the deduction.

     4 If this plan fails to qualify initially for favorable tax treatment under the Code, then all
contributions
can be returned to the employer, as long as an application for determination on the plan was
filed with the
Internal Revenue Service by the due date of the employer’s return for the taxable year in
which the plan was
adopted.

Making Your Own Investment Decisions

     Introduction. As indicated above, matching contributions and additional employer contributions
are automatically invested in shares of common stock in F.N.B. Corporation under the terms of the
plan. On the other hand, you exercise complete discretion as to the investment of the money in your
401(k) account, your after-tax employee contribution account and your rollover account among the
available investment options. And if you have become fully vested in all of your accounts under the
plan, you are also permitted to transfer all or any portion of your matching contribution account
and additional employer contribution account out of shares of stock in F.N.B. Corporation and to
direct the investment of that money too. This section of the plan will explain how you do it.

     The choices. The plan offers a number of choices. They are listed on Appendix A, which is a
separate sheet that forms a part of this plan and which also includes a brief description of each
alternative (taken from information published by the Prudential Retirement).

     The choices may change from time to time. When they do, you will be given a new Appendix A
showing all of the choices that are in effect after the change is made.

     F.N.B. Corporation common stock. Shares of common stock in F.N.B. Corporation are one of
the
investment options available under the accounts that you control. In deciding what portions of
your accounts you wish to direct into F.N.B. Corporation common stock, you should keep the
following in mind:

     4 Unlike the mutual funds that are available as investment options under the plan, shares in
F.N.B. Corporation are not a “managed investment” consisting of a variety of different stocks or
bonds within a single fund. Like the performance of shares of stock in any single corporation, the
investment performance of shares of stock in F.N.B. Corporation depends solely on the business of
the corporation and the banking industry in general, and therefore this investment may be more
volatile (subject to bigger shifts in value) than other investment options available under the
plan.

     4 Matching contributions and additional employer contributions are made in common stock of the
sponsor, so some portion of your account will already be invested in the stock of F.N.B.
Corporation, unless
you have become fully vested and have chosen to move the money to other investments.

8

 

     Getting information. The plan administrator cannot tell you which investment choice is best
for you; that is your decision alone, and the plan administrator is not licensed as an investment
advisor.

     But the plan administrator will direct you to more specific information about the choices,
including exactly what each fund is invested in, who runs each fund, and how each fund has
performed in the past. We hope this information will be helpful to you in making your choices, but
please remember that neither the plan administrator nor the trustee or anyone else connected with
the plan can take any responsibility for the accuracy or completeness of the information found in
prospectuses or other promotional materials provided by the investment funds (including the
summaries that are listed above).

     Implementing your choices. When you first join the plan, you will be asked to choose how you
would like your account to be invested among the available options. After that, you can change
your investment choices in three ways:

     4 You can change your choices daily by using the TeleTouch® system maintained by the insurance
company. Just call the toll-free number for TeleTouch®, 1-877-778-2100, and follow the
recorded
instructions.

     4
You can change your choices daily by using the Internet. Just go to the Prudential Retirement
Solutions at www.prudential.com. You will need your Social Security number and PIN.

     4 You can change your investment choices by using a form supplied by the plan administrator,
but these changes can only be processed monthly and are subject to a processing charge. (Changes
made by TeleTouch® and over the Internet are free.)

     If
for any reason there is no current investment direction on file for you with the trustee,
the plan hereby requires that your accounts be invested in the investment option that is listed
first on Appendix A, and neither the plan administrator nor the trustee nor any other fiduciary of
the plan shall have any authority or discretion to direct otherwise. The same applies to any
portion of your investment direction that becomes out of date, such as if you have chosen a
particular fund and that fund is no longer offered.

     Your responsibility. In return for complete freedom to choose how your accounts are invested
among the available investment funds, you take complete responsibility for your choices. No one
else is responsible for helping you or keeping you from making bad decisions. In fact, no one
monitors your decisions at all.

     This plan is designed to take advantage of section 404(c) of the Employee Retirement Income
Security Act of 1974, as amended, which means that the plan administrator and the trustee and all
other fiduciaries of the plan are relieved of any and all responsibility for the investment
decisions that you make.

When You Retire or Terminate Employment

     Introduction. This is a retirement plan. The purpose is for both you and the employer to save
for your retirement. This section will explain what you are entitled to when you retire or your
employment terminates for some other reason.

     Normal retirement after age 65. If your employment with the employer terminates any time on
or after your 65th birthday, and you have reached the fifth anniversary of the date on which you
joined the plan, you are entitled to all the money in your 401(k) account, your matching
contribution account and your additional employer contribution account, as well as all of the
money in your rollover account and your after-tax employee contribution account, if you have either
of such accounts. 

     Historical note: Prior to January 1, 2007, the plan provided full vesting at normal
retirement age,

9

 

which was
age 62, with no service requirement. This amendment preserves that feature with respect
to benefits accrued prior to this amendment. Therefore, if you were participating in the plan
prior to January 1, 2007 and you subsequently terminate employment with the employer at or after
age 62, you will be fully vested in that portion of all of your accounts under the plan which had
accrued prior to January 1, 2007. Benefits accruing on and after January 1, 2007 will be subject
to the terms of the plan as amended by this amendment.

     Early retirement after age 55. If your employment with the employer terminates any time on or
after your 55th birthday and you have completed five years of service, you are entitled to all the
money in your 401(k) account, your matching contribution account and your additional employer
contribution account, as well as all of the money in your rollover account and your after-tax
employee contribution account, if you have either of such accounts.

     Disability. If you become permanently and totally disabled, then you are entitled to all the
money in your 401(k) account, your matching contribution account, and your additional employer
contribution account, as well as all of the money in your rollover account and after-tax employee
contribution account, if you have either of such accounts. For this purpose, “totally and
permanently disabled” means that, in the opinion of a physician selected by the plan
administrator, you are unable to engage in any substantially gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to result in death or
to be of long, continued and indefinite duration.

     Other
termination of employment. If your employment with the employer terminates before normal
or early retirement or disability (as just described), you are entitled to receive all the money
in your 401(k) account, as well as all of the money in your rollover account and your after-tax
employee contribution account, if you have either of those accounts.

     In addition, you are entitled to receive part or all of the money in your matching
contribution account if you completed at least one year of service before your employment
terminated. Whether you get all or just a portion of your matching contribution account depends on
your length of service. At the beginning of the plan, in the section called “Quick-Reference
Information,” under the heading “Length Of Service Required For Benefits,” there is a table
showing what percentage of these accounts you get. (To figure out your length of service, see the
section entitled “How the Length of Your Service Is Calculated.”)

     As an exception, all employees who were notified on or about August 20, 2003 and whose
positions were eliminated by the restructuring of F.N.B. Corporation automatically became fully
vested in the balance of their matching contribution accounts at that time (but not in any matching
contributions that might be made upon subsequent re-employment). This special rule does not apply,
however, to any employee whose employment with the employer ended before the date of that
reorganization. As another exception, all cash dividends with respect to shares of common stock in
F.N.B. Corporation that are declared and paid after March 1, 2003 are automatically 100% vested,
even if you are not fully vested in the shares of common stock in F.N.B. Corporation with respect
to which the dividends are paid.

     Forfeitures. Aside from normal and early retirement and disability, if your employment
terminates before you have become vested to any extent (as shown on the table “Length of Service
Required for Benefits” at the beginning of the plan), completed at least one year of service, you
are not entitled to any of the money in your matching contribution account and additional employer
contribution account. As soon as your employment with the employer ends, that account is
forfeited.

     If you have become partially, but not fully, vested (as shown on the table “Length of Service
Required for Benefits” at the beginning of the plan), and completed at least one year of service
but not 5 years of service, you are entitled to some but not all of the money in your matching
contribution account. If you take the portion to which you are entitled, the balance is forfeited
as soon as your receive the portion to which you are entitled. If you choose to leave the money in
the plan, the balance is forfeited when you have five consecutive break in service years (or when
you take the money, if you take it before then).

     If you are later re-employed, the amount of the forfeiture (with no adjustment for
subsequent gains,

10

 

losses, or expenses) will be restored to your accounts if, and only if, you re-pay the full amount
that you previously received from the plan. Re-payment must be made within 5 years after you are
first re-employed and before you suffer 5 break in service years in a row (as described below
under the heading “How The Length Of Your Service Is Calculated”).

     The money to restore your accounts will come from forfeitures occurring during the same year
when restoration is required. If those forfeitures are inadequate, the employer will contribute
the balance in cash. Any balance of forfeitures during a plan year in excess of what is necessary
to restore accounts during that year will be used to pay expenses of administering the plan or
applied toward the employer’s obligation to make matching contributions and allocated as if they
were matching contributions or additional employer contributions, thus reducing the amount of cash
contribution necessary from the employer to make the required matches.

     Some special rules about termination of employment. When we say your “employment with the
employer terminates,” we mean that you are no longer employed by any employer that participates in
the plan nor by any other member of the controlled group of trades or businesses (as described
later in the plan in the section called “How the Length of Your Service Is Calculated”). In
addition, we mean that you have a “severance from employment” that permits you to receive your
401(k) contributions under the rules of section 401(k) of the Code and the regulations under that
section or you are affected by a disposition of assets or a subsidiary within the meaning of
section 401(k)(10) of the Code and satisfy the requirements of that section and accompanying
regulations for a distribution.

When Payment Is Actually Made

     Introduction. The preceding section described what you are entitled to when you retire or
your employment terminates for some other reason. This section will go on to describe when payment
is actually made, which depends on a number of factors.

     Normal or early retirement or disability. If you take normal or early retirement or suffer
disability (as described in the preceding section), payment is made as soon as administratively
possible after your termination of employment.

     Other
termination of employment. If your employment terminates for any reason other than normal
or early retirement or disability, payment is made as soon as administratively possible after your
termination of employment.

     Your choices about timing. If your entitlement is $1,000 or less, you do not have any
choices about timing. You must take the money when you are first entitled to payment. If your
entitlement is $1,000 or less, you will be notified and, if you don’t initiate a withdrawal by
following the claim procedure described in the following section of the plan, payment will be made
automatically. In figuring out whether your entitlement is $1,000 or less, your rollover account
(if any) will be taken into account.

     But if your entitlement is more than $1,000, payment will not be made unless and until you
apply for it. This gives you some ability to postpone payment. When you want to take the money,
start the process by initiating the claim procedure described in the following section of the
plan. The plan administrator (or its delegate) will prepare the paperwork and send it to you. Then
you check it, sign it if it’s correct, and return it. The plan administrator (or its delegate) will
need a little time to process your application. If your application is approved, the plan
administrator (or its delegate) will direct the insurance company and the trustee to pay the
money.

Historical
note: This $1,000 “cash-out limit” is effective for distributions made on
or after March 28, 2005. Before March 28, 2005, the cash-out limit was $5,000. In
figuring out

11

 

     whether your entitlement was $5,000 or less, your rollover account (if any) was not
taken into account.

     The law says that, after your employment terminates, you must receive the money no later than
60 days after the close of the plan year in which your employment terminated (or you attain age
62, if later) unless you choose not to take it. If you don’t apply for the money by that date, we
will interpret your silence as your choice not to take the money yet.

     Latest possible date to take the money. While you have some ability to postpone payment of
your benefit, you can’t postpone it forever. Once your employment has terminated and you have
reached age 701/2, you must at least begin to take the money by April 1 of the following year (that
is, April 1 of the year following the year in which your employment with the employer terminates
or you attain age 701/2, whichever comes later).

     Then you must take more by the end of that plan year and every following plan year on a
schedule that does not extend beyond your life expectancy (or the joint life expectancy of you and
your spouse, if your spouse is at least 10 years younger than you). Life expectancy is determined
by tables issued by the Internal Revenue Service. (Of course, you may take all the money to which
you are entitled at any time after age 701/2; you need not string it out.)

Please note: There is a stricter rule for 5% owners. Any employee who is a 5% owner
upon attainment of age 701/2 must begin to take the money by April 1 of the following
year even if he or she remains employed.

     The plan administrator will pay you whatever is necessary to comply with this provision of
the law (section 401(a)(9) of the Code, including the “minimum incidental death benefit” rules)
and final IRS regulations issued under section 401(a)(9) of the Code in June of 2004, even if you
don’t apply for payment. Payments that are required to be made under this section can not be
transferred to another plan in a direct rollover.

How Payment Is Made

     Introduction. When your employment has terminated and the time comes for payment, the next
question is, In what form is the payment made? This section will answer that question.

     Normal form. The normal form of payment for all accounts is payment in a single sum by check
made payable to you.

     Having
the money transferred directly to another plan. Rather than taking the money and paying
taxes on it when the time comes for payment, you may be able to make a “direct rollover” to another
plan. Direct rollovers can be made to plans of these types:

     4 a 401(k), pension, profit sharing or stock bonus plan that is qualified under section 401(a)
of the Code, or

     4 an individual retirement account or individual retirement
annuity (IRA), or

     4 an annuity plan described in section 403(a) of
the Code, or

     4 an annuity contract described in section 403(b) of the Code or an eligible plan under section
457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency
or instrumentality of a state or political subdivision of a state and which agrees to separately
account for amounts transferred into that plan from this plan.

12

 

This might happen, for example, if you get another job and the plan of your new employer will
accept the transfer. Naturally, this plan will not make the transfer if the other plan will
not accept it.

     All payments from this plan are eligible for direct rollover except the following:

     4
any payment to the extent that it is required because you have reached age
701/2, and

     4 any portion of a hardship distribution.

     Any after-tax employee contributions may be rolled over, but only to a qualified plan and
only if the recipient plan will separately account for them, including the portion that is taxable
and the portion that is not.

     Thankfully, you don’t have to worry about those rules. If the money that you are about to
receive is eligible for direct rollover to another plan, you will be notified and given at least
30 days to decide whether you would like to have a direct rollover to another plan. On the other
hand, you don’t have to wait 30 days; you may take the money or do the direct rollover as soon as
7 days after receiving notification, as long as you sign the appropriate form waiving your right
to consider your decision for 30 days.

     Special ESOP rules. Since the plan is an ESOP, some special distribution rules apply. First,
you have the right to demand that your distribution from the plan be paid in the form of shares of
stock in F.N.B. Corporation. After receiving stock from the trustee, it’s yours to keep or sell on
the open market, as you see fit. (The stock is publicly traded.)

     In the unusual event that the stock that you receive is subject to a restriction under any
federal or state securities law, any regulation thereunder, or an agreement affecting the
security, that would make the security not as freely tradable as a security not subject to
restriction, you are entitled to make the employer buy the stock back from you for cash. This is
officially known as a “put option” and it also applies to any beneficiary of yours. Here are the
rules:

     4 You can exercise the put option at any time within 60 days after you get the stock or during a
corresponding window period of 60 days during the following plan year. (The time will be
extended by any
period during which the employer is prohibited by law from buying the stock back from you.)

     4 You exercise your put option by notifying the employer in writing.

     4 The employer will buy the stock back from you at fair market value, as determined by the plan
administrator. Or, with the consent of the employer, the trustee may buy the stock back from
you at fair
market value.

     4 If the stock was distributed to you within a single taxable year and represented your complete
entitlement under the plan, payment for your stock will be made in substantially equal installments
(at least annually) over a period of not more than 5 years, as chosen by the purchaser, with the
first payment within 30 days after you exercise the put option. The unpaid installments will bear a
reasonable rate of interest and will be adequately secured by the purchaser.

     4 On the other hand, if the stock is coming to you in installments, payment for your stock will
be made within 30 days after you exercise the put option with respect to each installment.

13

 

How to Claim Your Money

     Introduction. To claim your entitlement under the plan, start by contacting the insurance
company, which has also been retained to provide administrative services. The insurance company
will provide information about the options that are available and, when you decide what you would
like to do, provide you with the application forms. Complete and return them as directed on the
forms.

     First-level decision. After your application is approved, you can expect to receive payment
from the trustee or insurance company within 30 days. If your claim is denied, the plan
administrator (or its delegate) will respond to you in writing, point out the specific reasons and
plan provisions on which the denial is based, describe any additional information needed to
complete the claim, and describe the appeal procedure.

     Appeal. If your claim is denied and you disagree and want to pursue the matter, you must file
an appeal in accordance with the following procedure. You cannot take any other steps unless and
until you have exhausted the appeal procedure. For example, if your claim is denied and you do not
use the appeal procedure, the denial of your claim is conclusive and cannot be challenged, even in
court.

     To file an appeal, write to the appeals authority identified at the beginning of the plan in
the section called “Quick-Reference Information” stating the reasons why you disagree with the
denial of your claim. You must do this within 60 days after the claim was denied. In the appeal
process, you have the right to review pertinent documents. You have the right to be represented by
anyone else, including a lawyer if you wish. And you have the right to present evidence and
arguments in support of your position.

     The appeals authority will ordinarily issue a written decision within 60 days. However, the
appeals authority may take an additional 60 days in special circumstances and, if so, will notify
you of the extension before the original 60 days expire. The appeals authority may, in its sole
discretion, decide to hold a hearing. The decision will explain the reasoning of the appeals
authority and refer to the specific provisions of this plan on which the decision is based.

     Discretionary authority. The plan administrator and appeals authority shall have and shall
exercise complete discretionary authority to construe, interpret and apply all of the terms of the
plan, including all matters relating to eligibility for benefits, amount, time or form of benefits,
and any disputed or allegedly doubtful terms. In exercising such discretion, the plan administrator
and appeals authority shall give controlling weight to the intent of the sponsor of the plan. All
decisions of the appeals authority in the exercise of its authority under the plan (or of the plan
administrator absent an appeal) shall be final and binding on the plan, the plan sponsor and all
participants and beneficiaries.

Payment Before Termination of Employment

     Introduction. Normally, your accounts will be paid after you retire (or your employment
terminates for some other reason). But there are a few circumstances in which you can take money
out of the plan even before your employment has terminated. This part of the plan explains those
times.

     After-tax employee contribution account twice per year. Twice each plan year, you are
entitled to withdraw all or any portion of the money in your after-tax employee contribution
account.

     After age
591/2. When you reach age
591/2, you may withdraw all or any portion of all or any of
your accounts under the plan that you would be entitled to receive if your employment terminated.

     After age
701/2. After you reach age
701/2, you may take all the money in all your accounts at any
time upon request, even if you are still employed by the employer.

     Hardship. If you suffer one of the following instances of immediate and heavy financial need
(whether or not you are still employed by the employer), you may be able to get some or all of
your 401(k)

14

 

contributions out of the plan.

     Immediate and heavy financial need. The following are the only types of immediate and heavy
financial need that the plan recognizes:

     4 medical expenses that would be deductible under section 213 of
the Code,

     4 purchase of a principal residence for the employee,

     4 payment of college or graduate school tuition (for the next school term only) for the
employee, spouse, children or other dependents,

     4 the need to prevent eviction of the employee or foreclosure on his or her personal
residence,

     4 payments for funeral or burial expenses for the employee’s deceased parent, spouse, child or
other dependent, or

     4 expenses to repair damage to the employee’s principal residence that would qualify for a
casualty loss deduction under section 165 of the Code (determined without regard to whether the
loss exceeds 10% of adjusted gross income).

     Historical
note: The last two items (funeral expenses and home repair) did not apply before
2006.

     Amount available. The amount of hardship distribution that you can receive from the plan is
only that which is necessary to respond to the need after all other resources reasonably available
to you have been exhausted. All other resources will be considered to have been exhausted if and
only if:

     4 the amount of the distribution does not exceed the need;

     4 the employee has obtained all distributions and loans available under all plans of the
employer;

     4
all plans of the employer provide that the employee’s 401(k) contributions and employee
contributions will be suspended for at least 6 months following the distribution (this plan so
provides if the employee chooses to use this provision); and

     4 all plans of the employer provide that the 401(k) contributions made during the year of the
distribution will count against the dollar limit on 401(k) contributions (described later in this
plan) for the calendar year following the calendar year of the distribution (this plan so provides
if the employee chooses to use this provision).

     Source of hardship distribution. A hardship distribution can be made from 401(k)
contributions. This really means just the contributions, not any earnings on those amounts, is
available for hardship distribution.

     Application. If you suffer immediate and heavy financial need and want a hardship
distribution from, the plan, get a form from the plan administrator, fill it out and return it to
the plan administrator.

Borrowing Money From Your Accounts

     Introduction. This is a retirement savings plan, and we do not encourage people to take loans
from their accounts. Nevertheless, active employees (no retirees or other former employees) may
borrow from their accounts, and this section of the plan will describe how much you can get and
how to do it.

15

 

     Basic requirements for loans. There is no special advantage in borrowing from the plan. These
loans are regular loans — like loans from a bank. This means that:

     4 you have to post collateral for the loan,

     4 you have to sign a promissory note,

     4 you have to pay interest at 1% over the prime rate published by the Wall Street Journal,
which is the rate set by 75% of the 30 largest banks in the country,

     4 you have to make payments on the loan at least semi-monthly,

     4 the semi-monthly payments will amortize the loan on a level basis over its term (no “interest
only” or balloon payments are permitted), and

     4 the term of the loan cannot be more than 5 years (with one exception: a loan used to acquire a
“dwelling unit” that, within a reasonable time after the loan is made, will be used as the
principal residence of the participant can extend beyond 5 years; this exception does not apply to
home improvement loans, loans to buy a second home, or loans to buy homes for other members of the
family).

     Special requirements for loans. In addition to those requirements, which resemble the rules
for loans from banks, the following additional rules apply to loans from the plan:

     4 You must agree to have your semi-monthly payments taken out of your paycheck by payroll
deduction.

     4 You must post collateral by pledging a portion of your accounts. The portion must be equal to
the amount of the loan. And you must pledge a portion that you would otherwise be entitled to
receive under the plan if you quit.

     4 You may not have more than two loans approved in any 12-month period, nor may you have more
than two loans outstanding at the same time.

     Amount.
There are several rules about the amount of a loan. First, you can never have a loan
of more than one-half of the amount that you would be entitled to receive from your accounts if
you quit. (The amount you would be entitled to receive if you quit is all of your 401(k) account,
your rollover account and your aftertax employee contribution account (if you have either of these
types of accounts), plus all or a portion of your matching
contribution account if you have completed at least one year of service.)

     Second, you can never have loans outstanding of more than $50,000 from all plans of the
employer and any other members of the same controlled group of trades or businesses. And the limit
of $50,000 is reduced by the amount by which you have paid off any loans within the past year.

EXAMPLE: In January, you took out a loan of $30,000. By December, you have paid it
down to $25,000. Though your present balance is $25,000 and you might think that you
could get another $25,000 loan, the amount that you paid off during the past year
($5,000) counts against the $50,000 limit, so you couldn’t get a loan of more than
$20,000 now.

     Third, you can’t get a loan in any amount less than $1,000. (It just doesn’t make sense to go
through all the work of making a loan for less than that.)

     Mechanics of the loan. Taking a loan is essentially making an investment decision — the
decision to lend your accounts to you. This means (i) your existing investments will be liquidated
to get the cash, (ii) a new account will be set up for the loan and it will hold your promissory
note as its asset, and (iii) your loan payments will all be credited to your new loan account. As
you make payments, the money coming into your

16

 

loan account will be invested in the same manner as contributions but will remain in the loan
account until the loan is completely paid off.

     Repayment. Repayment must be made on the schedule set out in (or attached to) the promissory
note, requiring payment of principal and interest in regular, substantially equal installments
over the term of the loan. Repayment must be made by payroll deduction from each paycheck.

     As an exception, the duty to pay according to the payment schedule will be suspended (but not
for more than one year) while you are on a leave of absence without pay. When you return from the
leave, the installment payments will resume in the original amount and the term of the loan will
be extended by the same number of payments which were suspended. If such an extension would extend
the term of the loan beyond five years (except in the case of a home loan), however, a new
installment payment schedule will be established instead, under which the new installment payments
are sufficient to pay off the remaining balance of the loan by the end of the maximum five-year
period.

     As another exception, the duty to pay according to the payment schedule will be suspended if,
and for as long as, you are performing military service within the meaning of the federal Uniformed
Services Employment and Reemployment Rights Act of 1994. When you cease to perform such service,
the installment payments will resume in the original amount and the term of the loan will be
extended by the same number of payments which were suspended.

     Pre-payment. You are entitled to pay off the loan at any time, with no pre-payment penalty.
Just ask the plan administrator for the pay-off amount. Pre-payment need not be made by payroll
deduction but may be made by check.

     Default. If you fail to make the full amount of any required installment payment by payroll
deduction, the loan will be considered in default, and the entire outstanding balance due and
payable immediately, 60 days later. This may occur, for example, when your employment with the
employer terminates or if you declare bankruptcy.

     If your loan goes into default and you do not pay the outstanding balance, the outstanding
balance will be considered a “deemed distribution” for tax purposes to the extent provided in
regulations of the Internal Revenue Service. In addition, the IRS may consider the outstanding
balance of the loan to be a “prohibited transaction” under the Code, which would trigger an excise
tax. When you become entitled to a distribution from the plan, if there is any outstanding loan
balance, the plan administrator will foreclose on your vested accrued benefit that was pledged as
security for the loan in order to satisfy the unpaid balance of the loan, effectively offsetting
the unpaid balance of the loan against the amount otherwise payable from the plan.

     In addition, all loans will be due and payable immediately upon distribution of assets in the
event of termination of the plan.

In Case of Death

     Introduction. If you die before your benefit is paid (such as while you are still employed by
the employer), the plan will pay out all of the money in all your accounts under the plan. Whom it
is paid to, and how, depends on whether you are married at the time of your death.

     Married. If you were married at the time of your death, then the money will be paid to your
surviving husband or wife in a single lump sum, unless, before your death, you named some other
beneficiary with the written consent of the husband or wife who survives you (as described below).

     Unmarried. If you are not married at the time of your death, then the money will be paid
to

17

 

whomever you named as your beneficiary before your death.

     Naming
your beneficiary. You can name your beneficiary at any time before your death by
completing a form from the plan administrator and returning it to the plan administrator. Please
note that your beneficiary is whomever you last named on the records of the plan administrator;
death or divorce does not automatically change your beneficiary.

     If you have named a beneficiary in place of your surviving husband or wife, your choice of
beneficiary will not be honored unless your surviving husband or wife has consented in writing
(or can’t be located). The plan administrator has a form for this purpose, which must be
completed, signed by your husband or wife, witnessed by a notary public, and filed with the plan
administrator before you die.

     If you complete and file the form with the plan administrator and then want to change your
mind (that is, you would like to go back to having your husband or wife as your beneficiary),
you can withdraw the form just by filing a new beneficiary form with the plan administrator any
time before you die.

     If money should be paid to a beneficiary, but you have not named a beneficiary or your
beneficiary does not survive you, the money will be divided among the people in the first of the
following classes that contains a survivor: (a) your surviving husband or wife, (b) your
children, (c) your parents, (d) your brothers and sisters, or (e) your estate.

     Claiming
the money. To claim the money, your husband, wife or other beneficiary should contact
the plan administrator, get an application form, and follow the same procedure as you would have
done to claim the money. If the person entitled to receive the money after your death is your
surviving husband or wife, that person may choose instead to have the money transferred directly to
another vehicle in a “direct rollover” in the same manner as you could have done if you had not
died, as described above in the section called “How Payment Is Made.”

Child Support, Alimony And Property Division in Divorce

     Introduction. The plan will honor certain court orders made in the context of family law -
child support, alimony and division of property in divorce. This means that part of your account
may have to be paid to someone else; you may not get all that you are expecting. This section of
the plan will explain when and how that can happen.

     What a domestic relations order is. It is a judgment, decree or order of a court (including
approval of a property settlement) made pursuant to state domestic relations law (including a
community property law) that provides child support, alimony payments, or marital property
rights to your spouse, former spouse, child or other dependent.

     The plan will not honor a domestic relations order unless it
specifies:

     4  that it applies to this plan,

     4 your name and last known mailing address, as well as the name and last known mailing
address of anyone else who is supposed to get payments,

     4 the amount or percentage of your benefits that are supposed to be paid to someone else, or
the manner in which the amount or percentage is to be determined, and

     4 the number of payments or the period to which the order applies.

18

 

     Also, the plan will not honor a domestic relations order if it attempts to require
the plan to:

     4 provide increased benefits,

     4 provide any type or form of benefit, or any option, that is not already provided for here
in the plan document (except to the extent specifically permitted by the Code), or

     4 pay to anyone any benefits that are already required to be paid to someone else under a
previous domestic relations order.

     As an exception, the plan will not refuse to honor a domestic relations order solely because
it requires immediate payment to the person who is supposed to get payments, even if the plan
does not permit you to get payment until your employment with the employer terminates.

     What happens when a domestic relations order comes in. When a domestic relations order comes
to the plan administrator, the plan administrator will first notify you and everyone else who is
supposed to get part of your benefit under the order that the order has come in. The plan
administrator will also tell you about the following procedure for deciding whether to honor the
order.

     Next, the plan administrator will separately account for the benefits that, under the order,
would be paid to someone other than you and hold onto them while deciding whether to honor the
order.

     Next, the plan administrator will decide whether the plan should honor the order, applying
the rules that are described in this section of the plan. When the decision is made, the plan
administrator will notify you and everyone else who is supposed to get part of your benefit.

     If the plan administrator decides that the plan will honor the order, the plan administrator
will proceed to make the payments required by the order (or schedule them for future payment, if
they are not due yet). If the plan administrator decides that the plan cannot honor the order, the
plan administrator will make payment as if there had been no order.

     In the unlikely event that the plan administrator cannot decide whether the plan should honor
the order within 18 months after the first payment should have been made under the order, the plan
administrator will make payments as if there had been no order until the decision is made, and
then make future payments (but no past payments) in accordance with the decision.

     If payment is to be made under a domestic relations order to your current or former husband
or wife, that person may choose instead to have the money transferred directly to another vehicle
in a “direct rollover” in the same manner as you could have done if you had not died, as described
above in the section called “How Payment Is Made.”

How the Length of Your Service Is Calculated

     Introduction.
The length of your service with the employer can matter for two reasons under
the plan: for getting into the plan (if there is a length-of-service requirement specified at the
beginning of the plan in the section called “Quick-Reference Information”) and for deciding what
portion of your account you are entitled to if you leave (if there is a length-of-service
requirement specified at the beginning of the plan in the section called “Quick-Reference
Information”). This part of the plan will explain how to calculate the length of your service.

Please
note: The length of your service for the purposes of the plan does not include
any service rendered before June 30, 1992—the original effective date of this plan.

19

 

Please
note, too: The length of your service matters for getting into the plan the
first time. Once you are in the plan, if you leave and return, you participate in
the plan again immediately upon your return (if you satisfy all of the other
eligibility requirements, of course).

     The clock. The simplest way to calculate the length of your service is to think of a clock.
When you first perform an hour for which you are paid or entitled to payment by the employer, the
clock starts. (This will usually be your date of hire, of course. And it is entirely independent
of whether you are working in the classification of employees covered by the plan.)

     The clock stops under a number of circumstances:

     4 If your employment terminates for any reason, then the clock stops when that happens. This
would happen, for example, if you quit, if you were fired, if you retired, or if you died.

     4 If you are absent from work for any reason that does not constitute a termination of
employment, then the clock continues to run for one year-as long as your employment still hasn’t
terminated — and then stops. This might happen if you take a leave of absence or you are placed on
a temporary layoff.

     Your length of service. As the clock starts and stops from time to time, the length of your
service is basically the total amount of time showing on the clock at any particular moment. There
are a few exceptions, depending on how long the clock is stopped at any one time.

     The
first exception — the clock stops for less than 1 year. If the clock stops because your
employment with the employer terminates but starts again within one year after that, then the clock
is re-set as if it had never stopped.

EXAMPLE: You start work on January 1 and so the clock starts. You quit on December
1, and the clock stops (showing 11 months as your length of service). You are
re-hired and start work again on the following February 1. Because the clock starts
again less than one year after it stopped, when it starts again on February 1 it
will be reset as if it had never stopped. Therefore, on February 1, it will show 13
months of service.

     If your termination of employment occurs during an absence from work (for example, you quit
while on a leave of absence), then the one-year period is measured from when the absence began.

     The second exception — the clock stops for at least one year. This exception comes into play
if the clock stops at a time when you are not entitled to any portion of any account derived from
employer contributions (within the meaning of section 410(a)(5)(D)(iii) of the Code) and the
clock remains stopped for at least one year.

     When the clock starts again:

     4 You won’t get credit for your previous time on the clock unless and until you get another
full year on the clock after your return to work.

     4 But once you get another full year on the clock after your return to work, then you get
credit for the total time on the clock.

EXAMPLE: You have 9 months of service on the clock and quit. One year passes. You
return to work. When you return, you have no credit on the clock. If you get 6
months on the clock, you have a total of 6 months on the clock. But you keep working
and get a full year of service after your return to work. Then your previous 9
months are added, so you have a total of one year and 9 months showing on the clock.

20

 

     The third exception — the clock stops for at least 5 years. This exception comes into play if
the clock stops at a time when you are not entitled to any portion of any account derived from
employer contributions (within the meaning of section 410(a)(5)(D)(iii) of the Code) and the clock
remains stopped for at least 5 years.

     If that happens, then when you return to work, the length of time that the clock was stopped
will be compared to the length of time that it had previously run. If it was stopped for longer
than it had previously run (that is, your termination lasts longer than your previous length of
service), then the clock is re-set to zero. That means you
start from zero again.

EXAMPLE: You have 9 months of service on the clock and quit. Five years pass. You
return to work. Because the clock was stopped for at least 5 years and remained
stopped for longer than it had previously run, when you return to work your previous
9 months of service are permanently lost. You start from zero.

Special help for maternity leave. If your absence is
due to:

4 your being pregnant or giving birth to a
child, or

4 having a child placed with you for adoption, or

4 caring for the child immediately following birth or adoption,

then the second exception won’t come into play until the clock has been stopped for 2 years and the
third exception won’t come into play until the clock has been stopped for 6 years.

     Special rules for temporary employees. Temporary employees are not eligible to participate in
the plan unless and until they complete 1,000 hours of service in an “eligibility computation
period.” The “eligibility computation period” is the 12-month period that starts when you first
perform an hour of service and then starts again on subsequent anniversaries of the date when you
first performed an hour of service.

     Generally speaking, an hour of service is any clock hour for which you are paid (or entitled
to payment) as an employee by the employer. It doesn’t matter how much you are paid for that hour;
an overtime hour is still one hour.

     Working hours. Hours of service naturally include hours when you are actually working as an
employee.

     Non-working hours. They also include hours when you are still an employee but not working due
to vacation, holiday, illness, layoff, jury duty, military service,
and leave of absence, if you
are paid (or entitled to payment) for those hours by the employer.

     Back pay. If for some reason you don’t work for some period but are later granted back pay for
that time, hours of service include hours for which you are granted back pay.

     Some more rules. The following additional rules apply:

     4 The number of hours credited for a time when you were not working is the number of regularly
scheduled working hours in the period for which you are paid. For example, if a day consists of 8
regularly scheduled working hours and you are paid for a day of vacation, you get credit for 8
hours of service.

     4 No more than 501 hours of service will be credited for any one, continuous period during
which you were not working (or, in the case of back pay, would not have been working).

21

 

     4 Credit for hours of service is allocated to the period when the work was (or would
have been) performed.

     4 Payments made solely to comply with workers’ compensation, unemployment compensation, or
disability insurance laws, and payments that reimburse you for medical expenses, do not result in
credit for hours of service.

     4 If the employer does not keep track of actual hours, then each day will equal 10 hours,
each week will equal 45 hours, each bi-weekly payroll period will equal 95 hours, each month
will equal 190 hours.

If you fail to complete more than 500 hours of service during an “eligibility
computation period,” that is a “break in service,” The one exception is if you are
absent due to pregnancy, birth (or placement for adoption), or caring for a child
immediately after birth (or placement). If you don’t have more than 500 hours of
service in the year when absence begins but the hours that would normally have been
credited for the absence during that year would bring your total over 500, then that
12-month period will not count as a break in service. (If you have more than 500
hours in the year when the absence begins, but you don’t have more than 500 hours in
the following year, this rule applies to the second year instead. That is to say, if
you remain absent during the following year and the hours that would normally have
been credited for the absence during the following year would bring your total over
500, then the following year will not count as a break in service.) A break in
service cancels your credit for all prior years in the same manner as discussed
above with regard to the clock.

     Service with related employers. Service with someone other than the employer still counts
for the purpose of calculating the length of your service with the employer under this section of
the plan if it was performed at a time when the employer maintained this plan and it was performed
for:

     4 a corporation which, at that time, was under common control with the employer under
section 414(b) of the Code, or

     4 a trade or business which, at that time, was under common control with the employer under
section 414(c) of the Code, or

     4 an entity which, at that time, was a member of an affiliated service group with the
employer under section 414(m) of the Code, or

     4 an entity which, at that time, was required to be aggregated with the employer under
section 414(o) of the Code (including the regulations under that section).

Please note: service with related employers counts only for the purpose of figuring
out the length of your service. You still have to be employed by one of the
employers that participate in this plan in order to get into the plan and get a
share of employer contributions, (The employers that participate in this plan are
shown at the beginning of the plan in the section called “Quick-Reference
Information.”)

22

 

When You Return from Military Service

     Introduction. Effective December 12, 1994, there were a few special rules to accommodate
employees who enter military service and then return to employment with the employer, and they are
listed in this section. These rules apply only to employees who are entitled to re-employment
under the federal Uniformed Services Employment and Reemployment Rights Act of 1994 (which is
called “USERRA”), as it may be amended from time to time, which contains detailed rules about what
“military service” is, how long an employee can be absent, when the employee must return, and
other conditions such as an honorable discharge. If you do not meet the requirements of USERRA,
this section of the plan does not apply to you.

     Break in service. If you are entitled to re-employment and are in fact re-employed in
accordance with USERRA, you will not be considered to have incurred a break in service (as
described in the preceding section of the plan) by reason of that military service.

     401(k) contributions. You obviously were not in a position to make 401(k) contributions
during your military service. But if you are entitled to re-employment and are in fact re-employed
in accordance with USERRA, you are entitled to “make up” those contributions. Here’s how:

     4 Besides the amount of 401(k) contributions that you could ordinarily get, you may identify
additional pay (that is, pay that you receive after you are re-employed) for additional 401(k)
contributions to the plan.

     4 The maximum amount of additional 401(k) contributions that you can have is the maximum
amount that you could have gotten if you had not been absent in military service.

     4 You can make these additional 401(k) contributions any time beginning on your re-employment
and ending after a period equal to three times your period of military service (or five years,
whichever comes first). For example, if your military service lasted 10 months, you can make these
additional 401(k) contributions over a period of 30 months, beginning with your date of
re-employment.

     Matching contributions. If you choose to make the additional 401(k) contributions referred to
in the preceding paragraph, your matching contribution account will be credited with the
corresponding matching contributions that it would have received if you had not been absent in
military service. (Your account will not be credited with investment earnings on those amounts that
you might have earned if you had not been absent in military service.)

     Additional employer contributions. If you are entitled to re-employment and are in fact
re-employed in accordance with USERRA, your additional employer contribution account will be
credited with additional discretionary employer contributions that you would have received if you
had not been absent in military service. (Your account will not be credited with investment
earnings on those amounts or forfeitures that you might have earned if you had not been absent in
military service.)

     Your “pay.” For the purpose of this section of the plan, you will be treated as though you
received pay at the same rate that you would have received if you had not been absent in military
service (including raises, for example, that you would have received if you had not been absent).
If the amount of pay cannot be determined with reasonable certainty, you will be treated as though
you continued to receive pay during your absence at the same rate as your average rate of pay from
the employer during the 12 months before you entered military service.

     Percentage of entitlement to employer accounts. If you are entitled to re-employment and are
in fact re-employed in accordance with USERRA, you will be given credit for that period of
military service when the plan administrator calculates the percentage of your matching
contribution account to which you are

23

 

entitled on the table under the heading “Length Of Service Required For Benefits” in the section
called “Quick-Reference Information.”

     Limits and testing. Contributions made under this section of the plan because of USERRA:

     4 will not be taken into account at all for the purpose of the utilization test described in
the section entitled “Maximum Amounts of 

401(k) Contributions” or the section entitled “Maximum
Amount of Matching Contributions”;

     4 will not cause the plan to fail to meet the requirements in the section entitled
“Improvements When the Plan is Top-Heavy”;

     4 will be subject to the limits in the year when they would have been paid if you had not
entered military service (rather than the year in which they are actually paid under this section)
for the purpose of the dollar limit described in the section entitled “Maximum Amounts of 

401(k)
Contributions” and the section entitled “Maximum Amount of Total Contributions” and will be ignored
when applying those limits to the other contributions actually paid for those years.

What the Plan Administrator Does

     Introduction. The plan administrator has all rights, duties and powers necessary or
appropriate for the administration of the plan. Many of those functions are described elsewhere in
the plan. This section will mention some others.

Please note: The description in this section of certain responsibilities imposed by
law is solely for convenient reference by the plan administrator and is not intended
to alter or increase those duties or transform them into contractual duties.

     Reporting and disclosure. The plan administrator will provide a copy of this plan to each new
member of the plan no later than 90 days after joining the plan.

     The plan administrator will prepare and file the annual return/report (Form 5500) for the
plan each year, if required. For that purpose, the plan administrator will retain an independent
qualified public accountant (within the meaning of ERISA) to perform such services as ERISA
requires.

     After filing the annual return/report, the plan administrator will distribute to all
participants and to all beneficiaries receiving benefits the “summary annual report” if required
by ERISA.

     The plan administrator will furnish to any participant or beneficiary, within 30 days of a
written request, any and all information required by ERISA to be provided, including copies of the
plan and any associated trust agreements and insurance contracts. The participant must pay the plan
the actual cost of copying (unless that is more than the maximum permitted by ERISA, in which case
the plan administrator will charge the maximum permitted by ERISA).

     The plan administrator may use electronic methods of communication in performing these
functions.

     Bonding. The plan administrator will assure that all “plan officials” who are required by
ERISA to be covered by a fidelity bond are so covered.

     Numerical testing. It is the responsibility of the plan administrator to monitor compliance
with the following sections of the plan regarding (1) the maximum amount of 401(k) contributions,
(2) the maximum amount of matching contributions, (3) the maximum amount of total contributions,
and (4) top-heavy. It is the

24

 

plan administrator’s responsibility to take whatever action is required by those sections.

     Prohibited transactions. ERISA prohibits a variety of transactions, most involving “parties
in interest.” The plan administrator will not cause the plan to engage in any transaction that is
prohibited by ERISA.

     Expenses. The expenses of administering the plan will be paid out of the plan assets except
to the extent that the employer chooses to pay them directly. They may include, for example, rent,
salaries, fidelity bond premiums, trustee and investment management fees, and professional fees.

     If the plan administrator is a full-time employee of the employer, then the plan
administrator will not receive any compensation from the plan for serving as plan administrator
but will be reimbursed for expenses.

     Limitation. The plan administrator does not have any authority or responsibility to perform
any of the functions that are described in the following section as employer functions.
Specifically:

     4 The plan administrator must accept as a fact the employment information furnished by the
employer. The plan administrator has no authority or responsibility with regard to the employment
relationship, and any disputes over the employment history are strictly between the employer and
the employee. To the extent possible, the plan administrator will, of course, give effect under the
plan to any new or corrected employment information furnished by the employer.

     4 The plan administrator has no authority or responsibility for collecting employer
contributions.

What the Employer Does

     Introduction. As the sponsor of the plan, the employer has functions entirely different from
the administration functions that are performed by the plan administrator. This section will
identify the employer’s functions.

     Establishment. The employer was responsible for establishing the plan in the first place.
That included establishing all the terms of the plan as set forth in this document.

     Contributions. The employer contributes to the plan as described above in the sections
entitled “‘401(k) Contributions,’ ‘Matching Contributions,’ and ‘Additional Employer
Contributions’.” In addition, the employer may, but does not have to, pay any expenses of the
plan, so that they are not charged against the plan assets.

     Employment records. Since the plan administrator does not employ the employees who are
members of the plan and does not keep employment records, it is the responsibility of the employer
to provide to the plan administrator whatever information the plan administrator needs to apply
the rules of the plan.

     In particular, it is the responsibility of the employer alone to determine whether an
individual is an employee of the employer (as opposed to an independent contractor or a leased
worker) and to report that status to the plan administrator. In addition, it is the responsibility
of the employer alone to determine the employment classification of each employee and to report
that classification to the plan administrator. The plan administrator has no responsibility or
authority to look behind the employment information furnished by the employer.

     Insurance and indemnification. The employer will provide fiduciary liability insurance to, or
otherwise indemnify, every employee of the employer who serves the plan in a fiduciary capacity
against any

25

 

and all claims, loss, damages, expense, and liability arising from any act or failure to act in
that capacity unless there is a final court decision that the person was guilty of gross
negligence or willful misconduct.

     Changing the plan. The employer has the right to change the plan in any way and at any time
and does not have to give any reason for doing so. (The employer
doesn’t have to have any plan at
all, so it has complete freedom in changing the plan as it sees fit.) These changes can be
retroactive.

     For example, the plan names the plan administrator, the trustee, any investment manager or
insurance company, and the appeals authority (they’re all shown at the beginning of the plan in
the section called “Quick-Reference Information”). The employer has the right to amend the plan to
replace any of those individuals or firms at any time and without giving any reason.

     Exceptions. The Code says that no amendment can be adopted that would make it possible for
the assets of the plan to be used for, or diverted to, purposes other than the exclusive benefit
of participants and beneficiaries, and the plan adopts that language but only to the extent (and
with the same meaning) required by the Code.

     The plan also adopts, but only to the extent and with the same meaning required by the Code,
the Code prohibition on amendments which have the effect of reducing the “accrued benefit” of any
member of the plan (including the provision of the Code which imposes the same prohibition on
amendments eliminating or reducing an early retirement benefit or a retirement-type subsidy or
eliminating an optional form of payment).

     Ending the plan. The plan has no set expiration date; when it was established, it was not
intended to be temporary. Nevertheless, the employer has the right to end the plan (in whole or in
part) at any time and without giving a reason for doing so.

     If there is a “termination” or “partial termination” of the plan or a complete discontinuance
of contributions within the meaning of Treasury Regulation 1.411(d)-2, every participant in the
plan who is affected by the termination or partial termination or complete discontinuance of
contributions and who has an account balance under the plan that has not been forfeited will
automatically be advanced to 100% on the table at the beginning of the plan in the section called
“Quick-Reference Information” under the heading “Length Of Service Required For Benefits,”
regardless of their length of service. For this purpose, those whose employment previously
terminated at a time when their percentage was zero will be considered to have been “cashed out” at
zero and will no longer be considered participants.

Maximum Amounts of 401(k) Contributions

     Introduction. The Code puts a couple of different limits on the amount of 401(k)
contributions. This part of the plan describes them.

     Dollar limit. 401(k) contributions cannot be more than a fixed dollar limit in any one
calendar year. And we are not talking just about this plan. This limit applies to any and all
plans of any and all employers, including 401(k) plans, simplified employee pension plans, and
403(b) tax-sheltered annuities.

     A table at the end of this plan document shows what the limit has been for each year up to
the year when this edition of the plan was published. The dollar limit changes from time to time
according to the cost-of-living, and the new figure is automatically applied each year. The plan
administrator can tell you what the exact figure is for this year. In the paragraphs that follow,
however, we’ll just keep saying “dollar limit,” because it’s easier that way.

     If the dollar limit is exceeded. There are two ways in which the dollar limit might be
exceeded. First, although this plan
prohibits 401(k) contributions of more than the dollar limit,
a mistake might be made. In that case, as soon as the mistake is discovered, the plan
administrator will simply return any and all 401(k)

26

 

contributions that were more than the dollar limit for a given plan year, adjusted for any income
or loss experienced while the excess was in the plan.

     Second, although 401(k) contributions to this plan are not more than the dollar limit, you
might have worked for some other employer during part of the year and the total of 401(k)
contributions made to this plan and the plan of that other employer might be more than the dollar
limit. In that case, you may withdraw all or part of the excess from this plan (not more than the
401(k) contributions that were actually made to this plan, of course), as long as you give the
plan administrator written notice which is received by the plan administrator no later than March
15 of the calendar year following the year in which the excess 401(k) contributions were made.
Then the plan administrator will return the amount that you have designated, adjusted for any
income or loss experienced while the excess was in the plan.

     Utilization test. How much employees at the top of the organization can make in 401(k)
contributions depends on how much all the other employees make in 401(k) contributions. You only
have to worry about this if you are at the top of the organization. We will call these people
“restricted employees.”

     Who the restricted employees are. The restricted employees are determined each year. They are
anybody who owned 5% or more of the employer during that year or the preceding year. They are also
anybody who had compensation from the employer during the preceding year of more than a fixed
dollar amount. A table at the end of this plan document shows what the dollar figure has been for
each year up to the year when this edition of the plan was published. (The dollar figure changes
from time to time according to the cost-of-living, and the new figure will automatically be
applied here. The plan administrator can tell you what the exact figure is for this year.)

     Performing the utilization test. First, the plan administrator will identify all the
restricted employees who are eligible to choose 401(k) contributions to the plan for the plan year
being tested (whether or not they have chosen to have 401(k) contributions). The plan
administrator will figure, separately for each such employee, what percent of pay he or she has
had in 401(k) contributions. For employees who have chosen not to have 401(k) contributions, this
percentage will be zero. The plan administrator will then average all of those percentages.

     Second, the plan administrator will focus on the year before the year being tested,
identifying those individuals who were not restricted employees but were eligible to choose 401(k)
contributions to the plan for that plan year (whether or not they chose to have 401(k)
contributions). The plan administrator will figure, separately for each such employee, what
percent of pay he or she made in 401(k) contributions during the preceding year. Once again, for
employees who chose not to have 401(k) contributions, this percentage will be zero (except to the
extent that the employer chooses to make “qualified nonelective contributions” as described
below). The plan administrator will then average all of those percentages.

Please note: In calculating these averages, the plan administrator may take
advantage of any special rules provided in the law or in published guidance from the
IRS. For example, the plan administrator may exclude from the calculation entirely
individuals who are not restricted employees and who have neither attained age 21
nor completed one year of service with the employer, as long as the coverage rules
of section 410(b) of the Code can be met without taking those individuals into
account. Alternatively, the plan administrator may consider all individuals who have
neither attained age 21 nor completed one year of service with the employer, whether
they are restricted employees or not, as a separate plan for this purpose, as long
as the coverage rules of section 410(b) of the Code would be met by both this plan
and the separate plan.

     In calculating these percentages, the plan administrator will take into account only pay that,
but for the choice to trade it off for contributions to the plan, would have been received by the
employee in the appropriate plan year or is attributable to services performed in that plan year
and would have been received by the employee within
21/2 months after the end of the plan year. In
addition, 401(k) contributions will be taken into account for a plan year only if not contingent on
participation or performance of services after the end of

27

 

the plan year and actually paid to the trustee or insurance company not later than 12 months after
the end of the plan year.

     If the average for the employees who are not restricted was less than 2% in the preceding
year, the average for the restricted employees in the year being tested cannot be more than twice
that percentage. If the average for the employees who are not restricted was between 2% and 8% in
the preceding year, the average for the restricted employees in the year being tested cannot be
more than 2 percentage points higher. If the average for the employees who are not restricted was
more than 8% in the preceding year, the average for the restricted employees in the year being
tested cannot be more than 1.25 times that percentage.

     If the utilization test reveals a problem. If the average for the restricted employees is
higher than it should be, the plan administrator will correct the problem by paying the
contributions back to the restricted employees, as follows.

     Step 1 — Calculating the total amount to be returned. The plan administrator will take the
restricted employee with the highest percentage of 401(k) contributions and figure out how much
of that employee’s 401(k) contributions would have to be returned to that employee so that his or
her percentage would be reduced enough to solve the problem for the whole group, but not more than
would make the percentage of that employee’s 401(k) contributions equal the percentage for the
restricted employee with the second-highest percentage.

     If the problem has not been solved for the group as a whole, then the plan administrator will
figure out how much of the 401(k) contributions of both of those people (the restricted employee
with the highest percentage and the employee with the second-highest percentage) would have to be
returned so that their percentage would be reduced enough to solve the problem for the whole
group, but not more than would make the percentage for those two employees equal the percentage
for the restricted employee with the third-highest percentage.

     If the problem has not been solved for the group as a whole, the plan administrator will keep
doing this until the problem is solved. Then the administrator will complete step one by totaling
the dollar amount of the contributions that would have to be returned to solve the problem. That is
the total amount that will have to be returned.

     Step 2 — Calculating how much is returned to each restricted employee. Now the administrator
will take the restricted employee with the highest dollar amount of 401(k) contributions and
return that employee’s 401(k) contributions to him or her until (a) the total amount that has to
be returned (as determined in step one) has been returned or (b) the dollar amount of that
employee’s 401(k) contributions has been reduced to the dollar amount of the restricted employee
with the second-highest dollar amount of 401(k) contributions.

     If the total amount that has to be returned has not yet been returned, then the plan
administrator will return the 401(k) contributions of those two employees (the restricted employee
with the highest dollar amount and the employee with the second-highest dollar amount) to those
two employees until (a) the total amount that has to be returned (as determined in step one) has
been returned or (b) the dollar amount of those two employees’ 401(k) contributions has been
reduced to the dollar amount of the restricted employee with the third-highest dollar amount of
401(k) contributions.

     If the total amount that has to be returned (as determined in step one) has not yet been
returned, the plan administrator will keep doing this until the total amount that has to be
returned has been returned. It is understood that, after returning 401(k) contributions by this
method, if the utilization test were to be run again, it might still not be passed, but the IRS
has stated in Notice 97-2 that this is the method to be used and when this method has been
followed, the utilization test is considered to have been satisfied.

     Alternatively, the employer may, but is not required to, solve the problem in whole or in
part by making additional contributions for employees who are not restricted. Any such
contributions will meet the requirements of the Code to be “qualified nonelective contributions”
and will be put into the employees’ 401(k)

28

 

accounts, which means they will be subject to all of the same rules that apply to amounts in your
401(k) account Qualified nonelective contributions may be allocated, among employees who are not
restricted, in any manner permitted by the Code and applicable regulations in accordance with
these rules:

     4  Unless the employer chooses a different method of allocation, the allocation will be in
proportion to compensation for the year in question.

     4   If the employer chooses the “bottom up” method of allocation, the allocation for a
particular participant cannot be greater than 5 percent of compensation (or, if greater, two times
the plan’s “representative contribution rate,” as defined in the regulations under section 401(k)
of the Code).

     4   The limit of 5 percent of compensation (expressed in the preceding bullet point), is raised
to 10 percent of compensation in the case of qualified nonelective contributions made in
connection with the employer’s obligation to pay prevailing wages under the Davis-Bacon Act, the
Service Contract Act of 1965, or similar legislation.

     Returning excess contributions. The concept of returning any excess contributions (due to
either the dollar limit or the limitation on restricted employees) is simply to reverse the
contributions — as if they had never been made. If the contributions had never been made, of
course, the employee would have received those amounts as pay and would have had to pay federal
income tax on them. So you have to pay income tax on them when you get them back.

     When you get the excess contributions back depends on why you are getting them back:

     4   If you are getting them back because of the dollar limit, you will get them back (including
the allocable income or loss) by April 15 of the following year. The returned contributions are
included in your taxable income for the previous year (the year when they were contributed), while
the income on them is included in your taxable income for the year when you actually receive it.

     4  
If you are getting them back because of the utilization test, you will get them back
(including allocable income or loss) by the end of the following plan year. The returned
contributions and any allocable income are included in your taxable income for the year in which
you actually receive them. (The only exception is the unlikely event that you get them back before
March 15 of the following year, in which case they are included in your taxable income for the
previous year.)

     The allocable income or loss is calculated taking into account the whole plan year in which
the excess arose plus that portion of the following plan year which occurs before the excess is
given back. The allocable income or loss is that portion of the total income or loss for the
period just described which bears the same proportion to the total as the excess 401(k)
contributions for the plan year bear to the account balance of your 401(k) account at the end of
the period just described (minus the income (or plus the loss) on that account for the period just
described).

     The amount of excess contributions returned to you because of the annual dollar limit will be
reduced by any excess contributions previously returned to you because of the limitation on
restricted employees for the plan year beginning with or within your taxable year. And the amount
of excess contributions returned to you because of the limitation on restricted employees will be
reduced by any excess contributions previously returned to you because of the annual dollar limit
for your taxable year ending with or within the plan year.

     Any return of contributions will be made first from contributions that were not matched (if
the plan provides for matching contributions). If those contributions are insufficient, and
contributions are returned to you that were matched, the matching contributions (including
allocable income or loss) will be forfeited, as required by law.

     Combining plans. If two or more plans are aggregated for purposes of section 401(a)(4) of the
Code or section 410(b) of the Code (other than section 410(b)(2)(A)(ii)), then all 401(k)
contributions made under

29

 

both plans will be treated as made under a single plan, for the purpose of this section of the
plan. (Of course, the aggregated plans must comply with sections 401(a)(4) and 410(b) as though
they were a single plan.) In addition, if a restricted employee is eligible to have 401(k)
contributions under two or more plans of the employer, those cash-or-deferred arrangements will be
treated as a single arrangement, unless the applicable rules would prohibit permissive aggregation
of those arrangements.

Maximum Amount of Matching Contributions

     Introduction. Besides limiting the amount of 401(k) contributions that can be made on behalf
of restricted employees, the Code also limits the amount of matching contributions that can be made
for restricted employees — both by themselves and when considered in combination with the 401(k)
contributions. This part of the plan describes these additional limitations. In addition, it
imposes an over-all limitation on matching contributions by way of limiting the deduction for
matching contributions.

     Matching contributions for restricted employees. The plan administrator will test the
matching contributions by themselves by running the same test as described in the preceding
section (“Maximum Amount of 401(k) Contributions”), taking into account all the same employees
but using matching contributions rather than their 401(k) contributions.

     If this test of matching contributions reveals a problem. If the matching contributions fail
the test in this section, then the plan administrator will return the excess matching
contributions in the same manner as under the preceding section of the plan (which specifies how
excess 401(k) contributions are returned). Alternatively, the employer may, but is not required
to, solve the problem in whole or in part by making additional “qualified nonelective
contributions” to the 401(k) accounts of employees who are not restricted, as described in the
preceding section of the plan. The problem must be solved by one method or the other before the
end of the Plan year following the year in which the deficiency occurred.

     Over-all limit on matching contributions. Because the Internal Revenue Code denies the
employer a deduction for matching contributions that, in the aggregate, exceed 25% of the
compensation from the employer of all participants in the plan, the plan prohibits matching
contributions in excess of that amount.

Maximum Amount of Total Contributions

     Introduction. Federal law sets a limit on how much money can go into your accounts in this
plan in any one year. This section describes the limit. You don’t have to worry about this,
though; the plan administrator will pay attention to this section and make sure that the limit is
not exceeded.

     100%/25% of pay limit. The total amount of 401(k) contributions, matching contributions,
additional employer contributions and forfeitures allocated to your accounts for any one plan year
cannot be more than 100% of your compensation from the employer (or a dollar limit, whichever is
less). A table at the end of this plan document shows what the limit has been for each year up to
the year when this edition of the plan was published. (The dollar limit rises from time to time in
accordance with the cost of living, and the new figure is applied here automatically.)

     Separately, the total amount of matching contributions and additional employer contributions
for all participants in the plan cannot be more than 25% of the compensation from the employer of
all of those participants.

     If this limitation would be exceeded as a result of the allocation of forfeitures, a
reasonable error in estimating your annual compensation, a reasonable error in determining the
amount of 401(k) contributions

30

 

that may be made on your behalf within this limitation, or any other facts and circumstances that
the Commissioner of Internal Revenue finds justifies relief under this paragraph, the excess may
be returned to you, along with any earnings attributable to it.

     And, though it may never apply, the IRS requires us to say that the dollar limit is reduced by
employer contributions allocated to any individual medical account which is part of a pension or
annuity plan and contributions on behalf of a member of the concentration group, as described below
under the heading “Improvements When the Plan Is Top-Heavy,” to a separate account for
post-retirement medical benefits pursuant to Code section 419A(d) prior to the employee’s
separation from service.

     If there’s more than one defined contribution plan. All “defined contribution” plans of the
employer (that’s what this is) are considered to be one plan, so that, if the employer runs any
other defined contribution plans, the limit applies to the total contributions under all of those
plans. These may be plans qualified under section 401(a) of the Code, annuity plans under section
403(a), annuity contracts under section 403(b), -or simplified employee pension plans under
section 408(k).

     “Employee contributions” does not include rollover contributions from another plan and does
not include employee contributions to a simplified employee pension plan that are excludable from
gross income under section 408(k)(6) of the Code.

     Related employers. For the purpose of this section of the plan, all related employers are
considered to be a single employer to the extent required by Code sections 414(b), (c), (m), and
(o) and 415(h).

Improvements When the Plan Is Top-Heavy

     Introduction. The plan administrator has to monitor the plan year by year to see if the
benefits of the plan are concentrated in a group of employees that we will call the “concentration
group.” If so, the plan is said to be “top-heavy” and several improvements are automatically made
in the plan for that year. This section of the plan describes what the plan administrator does to
figure out if the plan is top-heavy and what improvements are made if it is.

Please note: This plan has never been top-heavy and is unlikely ever to become
top-heavy. The IRS makes us include this section “just in case,” even though it
probably will never apply.

     Who is in the concentration group. The plan administrator will first figure out who is in
the concentration group for a given plan year. This is what the plan administrator will do:

     Officers. List each person who was an officer of the employer at any time during the
preceding plan year (including former employees and deceased employees). Delete from the list
anyone who did not make more than $130,000 (as indexed by the Internal Revenue Service for the
cost of living).

     Find the highest number of employees of the employer at any time during the five preceding
plan years, excluding employees who have not completed 6 months of service, employees who normally
work fewer than
171/2 hours per week, employees who normally work not more than 6 months during
any year, employees who have not attained age 21, and employees included in a collective
bargaining unit. And then delete from the list of officers as follows:

     4   If the number of employees is less than 30, delete all but the 3 officers having the
greatest aggregate compensation during those five years.

     4   If the number of employees is more than 30 but less than 500, take 10 percent of that
number, round

31

 

to the next highest whole number, and then delete all but the resulting number of officers having
the greatest aggregate compensation during those five years.

     4   If the number of employees is more than 500, delete all but the 50 officers having the
greatest aggregate compensation during those five years.

     Everybody
left on the list is in the concentration group.

     5% Owners. List all employees who owned more than 5% of the value of the stock or voting power
of the stock of the employer on the last day of the preceding plan year. All those people are in
the concentration group.

     1% Owners. List all employees who owned more than 1% (but not more than 5%) of the value of
the stock or voting power of the stock of the employer on the last day of the preceding plan year.
Delete anyone who did not make more than $150,000 that year. Everybody left on the list is in the
concentration group.

     Performing the concentration test. To test for top-heaviness, the plan administrator will
identify all pension, profit sharing and stock bonus plans of the employer in which any member of
the concentration group participated in any of the preceding five years. (This includes plans that
have previously been terminated if they were maintained at any time during those five years.) In
addition, if any of those plans relies on the existence of some other plan in order to meet the
coverage or nondiscrimination rules, then that other plan will also be thrown into the test. All
of them will be tested together as if they were one plan.

     Defined benefit plans. For each defined benefit plan, the plan administrator will calculate
the present value of each participant’s accrued benefit as of the valuation date coincident with or
last preceding the end of the last plan year, as if the participant terminated on the valuation
date, using the same actuarial assumptions for all plans. This will include the value of
non-proportional subsidies and accrued benefits attributable to nondeductible employee
contributions (whether voluntary or mandatory). If there is no uniform accrual method under all
such defined benefit plans, the plan administrator will determine the accrued benefit by applying
the slowest accrual rate permitted under the “fractional rule” of Code section 411(b)(1)(C).

     Defined contribution plans. For each defined contribution plan (including this one), the plan
administrator will calculate the account balance of each participant, as of the valuation date
coincident with or last preceding the end of the last plan year. This will include contributions
due by the last day of the last plan year.

     Add-backs. For both defined benefit and defined contribution plans, the plan administrator
will add back in the value of all distributions made during the preceding plan year, except to the
extent already taken into account, but also the value of all in-service distributions (that is,
distributions for reasons other than severance from employment, death or disability) during the
preceding five plan years.

     Exclusions. The plan administrator will exclude from the total all accrued benefits and
account balances of persons who did not perform any services for the employer during the preceding
plan year. The plan administrator will exclude from the total all accrued benefits and account
balances of persons who were members of the concentration group for prior years but are not
members of the concentration group for the year being tested. The plan administrator will also
exclude from the total all rollovers except those which (1) were not made at the initiative of the
employee or (2) came from a plan of an employer required to be aggregated with this employer under
section 414 of the Code.

     Concentration percentage. The plan administrator will divide the total accrued benefits and
account balances of the members of the concentration group by the total accrued benefits and
account balances of everyone in the plans. If the result is more than 60%, all the plans are
top-heavy. If the result is 60% or less, none of the plans are top-heavy.

     Exception. If the percentage is more than 60%, but would not be more than 60% if another
plan were

32

 

added to the group of plans that are being tested (and that plan is one which could be added
without taking the group out of compliance with the coverage and nondiscrimination rules), then
none of the plans are top-heavy.

     Changes if the plan is top-heavy. There are three changes that apply for a particular plan
year if the plan is top-heavy for that year.

     Benefits in the event of termination of employment before retirement. If the plan is
top-heavy for a particular year, then the schedule at the beginning of the plan in the section
called “Quick-Reference Information” under the heading “Length Of Service Required For Benefits”
may be changed for everyone who has at least one hour of service after the plan became top-heavy.

     4   If that schedule provides for 100% after 5 years of service, it is changed to 100% after 3
years of service.

     4   If it provides for gradually increasing percentages from 3 to 7 years of service, it is
changed to provide the same progression but from 2 to 6 years of service.

     4   If it already provides a schedule which is better than 100% after 3 years or graded from 2 to
6 years, then there is no change in the schedule.

     If, in a future year, the plan is no longer top-heavy, the schedule in “Quick-Reference
Information” is reinstated, except that the reinstatement of the original schedule is treated as
an amendment to the plan subject to the two limitations described below in the “Miscellaneous”
section under the heading “Changes in Vesting Schedule.”

     Minimum contribution. For a year when the plan is top-heavy, each member of the plan who is
not a member of the concentration group will receive an employer contribution on top of his pay of
at least 3%, with three exceptions:

     4   The percentage is not required to be greater than the highest percentage received for that
year by anyone who is a member of the concentration group. In figuring that percentage, 401(k)
contributions are counted as contributions, as are matching contributions.

     4   If the employer also maintains a defined benefit plan that is top-heavy and that plan
provides that the concentration requirements will be met by providing the minimum required accrual
in that defined benefit plan, then there is no minimum contribution required in this plan.

     4   If the employer also maintains a defined benefit plan that is top-heavy and that plan does
not provide that the concentration requirements will be met by providing the minimum required
accrual in that defined benefit plan, then the minimum contribution in this plan is 5%.

     The minimum contribution requirement applies to everyone in the plan who has not separated
from service by the end of the plan year, including those who have not completed 1,000 hours of
service during the year and those who have not chosen to have 401(k) contributions. The minimum
contribution requirement cannot be met by counting 401(k)
contributions.

What “Pay” Means

     Introduction. Unfortunately, your “pay” is fairly complicated and can have different meanings
for different purposes. This section will describe them.

     For the purpose of calculating 401(k) and matching and additional employer contributions.
For

33

 

the purpose of calculating 401(k), matching and additional employer contributions, your “pay” is
all wages, salaries, fees for professional services, and other amounts received for personal
services actually rendered in the course of employment with the employer to the extent includible
in gross income for federal income tax purposes (including commissions, bonuses other than signing
bonuses, and incentive compensation).

     As an exception, your “pay” for this purpose also includes the following items even though
they are not includible in gross income for federal income tax purposes: your 401(k) contributions
under this plan (or any other 401(k) plan), as well as salary reduction amounts under a cafeteria
plan (Code section 125), a tax-sheltered annuity (Code section 403(b)), a simplified employee
pension plan (Code section 402(h)), an eligible deferred compensation plan of a tax-exempt
organization (Code section 457), or a qualified transportation fringe benefit plan (Code section
132(f)).

     As another exception, your “pay” for this purpose does not include any of the following items
even if they are includible in gross income for federal income tax purposes: signing bonuses,
awards under any long-term incentive plan (regardless of how paid, such as in restricted stock or
in cash), any reimbursements or other expense allowances, fringe benefits (cash and noncash)
including severance pay and long-term disability benefits, moving expenses, deferred compensation,
or welfare benefits.

     For all other purposes. For all other purposes under the plan, your “pay” consists of the
“pay” used for calculating 401(k), matching and additional employer contributions plus taxable
payments from accident and health plans, payment or reimbursement of non-deductible moving
expenses, non-qualified stock options to the extent includible in income, and amounts includible
pursuant to an election under section 83(b) of the Code.

     Dollar limit. Regardless of the general definition of “pay,” as required by section
401(a)(17) of the Code, pay in excess of a fixed dollar amount is not taken into account for any
purpose under this plan. A table at the end of this plan document shows what the fixed dollar
amount has been for each year up to the year when this edition of the plan was published.

     Since the government has changed this limit from time to time, the limit may have been
different in earlier years, and those limits still apply to those
earlier years.

     Period used to determine pay. The period used to determine your pay for a plan year is the
plan year. And the plan takes into account only compensation that you received from the employer
while you were a member of the plan (that is, not including any compensation that you earned
before you joined the plan).

Miscellaneous

     Leased
employees. If the employer previously leased your services from a leasing organization
but later you become employed by the employer itself, your length of service includes your service
as a leased employee if it was performed at a time when the employer maintained this plan. (When
we say “employer,” we include related employers, as described above under the heading “How The
Length of Your Service Is Calculated”.)

     Service as a leased employee is service performed under primary direction or control by the
employer, pursuant to an agreement between a leasing organization and the employer, and which you
have performed on substantially a full-time basis for at least one year.

     There is one exception. Provided that leased employees do not constitute more than 20% of the
workforce of the employer (ignoring restricted employees described under the heading “Maximum
Amount of 401(k) contributions”), service as a leased employee will not count for any purpose if,
while serving as a leased employee, you are covered by a money purchase pension plan sponsored by
the leasing organization which

34

 

provides for immediate participation, full and immediate vesting, and a non-integrated
contribution of at least 10% of compensation (as defined in section 415(n)(5)(C)(iii) of the
Code).

     Family and medical leave. Any leave to which you are entitled under the federal Family and
Medical Leave Act of 1993 will not result in the loss of any “employment benefit” provided by this
plan that had accrued prior to the leave and that would not have been lost if you had remained
actively at work during the leave.

     Changes in vesting schedule. If the schedule shown at the beginning of the plan in the
section called “Quick-Reference Information” under the heading “Length of Service Required for
Benefits” is ever changed, there are two limitations. First, the change will never reduce the
percentage that applies to your account based on employer contributions that were made on top of
your pay through the end of the last year before the change was adopted (or became effective, if
later). Second, if you have 3 or more years of service when the change is adopted (or becomes
effective, if later), you may nevertheless choose to stay under the schedule that was in effect
before the change was made.

     Investment manager. In order to be an investment manager, as described under the heading
“What Happens To The Money While It’s In The Plan,” an individual or firm must be registered as an
investment advisor under the Investment Advisors Act of 1940 or be a bank (as defined in that act)
or insurance company qualified under the laws of more than one state to manage, acquire and sell
plan assets and it must acknowledge in writing that it is a fiduciary with respect to the plan.

     Non-Alienation. With the two exceptions provided here, your right to benefits under the plan
cannot be assigned or alienated. This means you cannot sell your interest in the plan or pledge it
as security for a loan. No creditor of yours can take away your interest in the plan. This
provision of the plan is intended to comply with, and apply just as broadly and as stringently as,
section 206(d) of ERISA and section 401(a)(13) of the Code.

     The first exception is qualified domestic relations orders described in the section entitled
“Child Support, Alimony and Property Division in Divorce.” The second exception is that the plan
may offset against your benefit any amount that you are ordered or required to pay to the plan in
the circumstances set forth in section 206(d)(4) of ERISA.

     Payments to minors. If the proper recipient of money from the plan is a minor, or if the plan
administrator believes the recipient to be legally incompetent to receive it, the plan
administrator may direct that the payment be made instead to anyone who has authority over the
affairs of the recipient, such as a parent, guardian, or other relative.

     Payment made in this manner will entirely satisfy the obligation of the plan to pay the
money, and the plan administrator will have no responsibility to see what happens to the money
after it is paid.

     Unclaimed benefits. People are expected to claim their money from the plan when they reach
age 65 (if they’re no longer working for the employer) or else when their employment terminates.
It is your responsibility to make the claim; the plan administrator does not have any
responsibility to track you down.

     If you still haven’t claimed your money by the time when it must be paid, the plan
administrator will make a reasonable effort to locate you (such as inquiring of the employer,
sending a letter to your last known address, and inquiring of the Social Security Administration).
If the plan administrator still can’t find you, the plan administrator will set up an
interest-bearing account with a financial institution in your name in order to get your money out
of the plan. If no financial institution will set up an account in your name without your
participation, the plan administrator will have to assume that you are dead and pay the money in
accordance with the death provisions of the plan.

     Plan assets sole source of benefits. The plan assets (held in the trust fund or by an
insurance company) are the only source of benefits under the plan. The employer and plan
administrator are not

35

 

responsible to pay benefits from their own money, nor do they guarantee the sufficiency of the
trust fund or insurance contracts in any way.

     No right to employment. Many of the requirements of the plan depend on your employment
status, particularly how long you have worked for the employer. But your employment status is
purely a matter between you and your employer; the plan does not change anything. The fact that
your rights under the plan might be different if your employment history were different does not
give you any different employment rights than if the plan had never existed.

     Profit sharing plan and ESOP. This plan is intended to qualify under section 401(a) of the
Code as a profit sharing plan, including a qualified cash-or-deferred arrangement. It is also
intended to qualify as an employee stock ownership plan under section 4975(e)(7) of the Code.

     Merger of plan. The Code requires that the plan contain the following provision (which is
also a requirement of ERISA). However, the interpretation and application of this provision are
quite different from what it appears to say, and we intend that it be interpreted and applied no
more strictly than required by the regulations under the Code:

     The plan may not merge or consolidate with, or engage in a transfer of assets or liabilities
with, any other plan unless the benefit that each participant in this plan would receive if both
plans terminated immediately after the transaction is no less than the benefit that the
participant would have received if this plan had terminated immediately before the transaction.

     Protection of benefits, rights, and features from previous edition of plan. Since this
document constitutes an amendment and restatement of the plan, it must preserve, to the minimum
extent required by section 411(d)(6) of the Code and Treasury
Regulation 1.411(d)-4, all
benefits, rights and features required by that Code section and regulation to be protected against
reduction. While we believe that this document preserves all such benefits, rights and features, as
a failsafe we recite here that the terms of all such benefits, rights, and features, to the extent
entitled to protection under this restatement of the plan, are hereby incorporated by reference
from the prior plan document.

     Governing law. The plan is subject to ERISA and therefore governed exclusively by federal law
except where ERISA provides otherwise. If state law ever applies to the interpretation or
application of the plan, it shall be the law of the state where the employer has its principal
place of business.

     No PBGC Coverage. This plan is not covered by the plan termination insurance system
established under Title IV of ERISA and administered by the Pension Benefit Guaranty Corporation.
As a defined contribution, individual account plan, it is not eligible for coverage under the law.

     Statement of ERISA rights. Regulations of the federal government require that the following
“Statement of ERISA Rights” appear in this document, and we are reproducing it here with quotation
marks. Not all of the statement is necessarily accurate or applies to this plan. Neither the
employer nor the plan administrator takes any responsibility for the accuracy or completeness of
this statement, which is made to you by the federal government, not by anyone connected with the
plan:

     “As a participant in this plan, you are entitled to certain rights and protections under the
Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all plan participants
shall be entitled to:

     “Receive Information About Your Plan and Benefits

     “Examine, without charge, at the plan administrator’s office and at other specified locations,
such as worksites, all documents governing the plan, including insurance contracts, and a copy of
the latest annual report (Form 5500 Series) filed by the plan with the U.S. Department of Labor and
available at the Public

36

 

Disclosure Room of the Pension and Welfare Benefit Administration.

     “Obtain, upon written request to the plan administrator, copies of documents governing the
operation of the plan, including insurance contracts, and copies of the latest annual report (Form
5500 Series) and updated summary plan description. The administrator may make a reasonable charge
for the copies.

     “Receive a summary of the plan’s annual financial report. The plan administrator is required
by law to furnish each participant with a copy of this summary annual report.

     “Obtain a statement telling you whether you have a right to receive a pension at normal
retirement age (age 65) and if so, what your benefits would be at normal retirement age if you
stop working under the plan now. If you do not have a right to a pension, the statement will tell
you how many more years you have to work to get a right to a pension. This statement must be
requested in writing and is not required to be given more than once every twelve (12) months. The
plan must provide the statement free of charge.

     “Prudent Actions by Plan Fiduciaries

     “In addition to creating rights for plan participants ERISA imposes duties upon the people
who are responsible for the operation of the employee benefit plan. The people who operate your
plan, called ‘fiduciaries’ of the plan, have a duty to do so prudently and in the interest of you
and other plan participants and beneficiaries. No one, including your employer, or any other
person, may fire you or otherwise discriminate against you in any way to prevent you from
obtaining a pension benefit or exercising your rights under ERISA.

     “Enforce Your Rights

     “If your claim for a pension benefit is denied or ignored, in whole or in part, you have a
right to know why this was done, to obtain copies of documents relating to the decision without
charge, and to appeal any denial, all within certain time schedules.

     “Under ERISA, there are steps you can take to enforce the above rights. For instance, if you
request a copy of plan documents or the latest annual report from the plan and do not receive them
within 30 days, you may file suit in a Federal court. In such a case, the court may require the
plan administrator to provide the materials and pay you up to $110 a day until you receive the
materials, unless the materials were not sent because of reasons beyond the control of the
administrator. If you have a claim for benefits which is denied or ignored, in whole or in part,
[and you have exhausted the plan’s internal appeal procedure] you may file suit in a state or
Federal court. In addition, if you disagree with the plan’s decision or lack thereof concerning
the qualified status of a domestic relations order or a medical child support order, you may file
suit in Federal court. If it should happen that plan fiduciaries misuse the plan’s money, or if
you are discriminated against for asserting your rights, you may seek assistance from the U.S.
Department of Labor, or you may file suit in a Federal court. The court will decide who should pay
court costs and legal fees. If you are successful the court may order the person you have sued to
pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for
example, if it finds your claim is frivolous.

     “Assistance with Your Questions

     “If you have any questions about your plan, you should contact the plan administrator. If you
have any questions about this statement or about your rights under ERISA, or if you need assistance
in obtaining documents from the plan administrator, you should contact the nearest office of the
Pension and Welfare Benefits Administration, U.S. Department of Labor, listed in your telephone
directory or the Division of Technical Assistance and Inquiries, Pension and Welfare Benefits
Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You
may also obtain certain publications about your rights and responsibilities under ERISA by calling
the publications hotline of the Pension and Welfare Benefits Administration.”

     Service of legal process may be made on the plan administrator or any trustee.

37

 

Special Provisions for New Members of the FNB Family

     Introduction. When a new group of employees joins the plan by reason of merger or other
acquisition, it is sometimes appropriate to make special arrangements for those employees in order
to bring them into this plan in a way that harmonizes with the plan that they were in before. In
other cases, special arrangements may be made when a group of employees leaves the FNB family. If
a special arrangement applies, this section describes it.

     Calls
Plaza, Giant Eagle and Drive-Thru Mellon Branches. In determining the length of your
service for getting into the plan and for the purpose of vesting, service in the employ of Mellon
Bank at one of the acquired operations before October 24, 1998 is taken into account under the
plan to the same extent as if Mellon Bank had been a participating employer during that period, up
to a maximum of five years.

     Finance & Mortgage Acceptance Corporation. In determining the length of your service for
getting into the plan and for the purpose of vesting, service in the employ of Finance & Mortgage
Acceptance Corporation before October 25, 1999 is taken into account under the plan to the same
extent as if Finance & Mortgage Acceptance Corporation had been a participating employer during
that period, up to a maximum of five years.

     Southern Financial. In determining the length of your service for getting into the plan and
for the purpose of vesting, service in the employ of Southern
Financial before July 31, 2000 is
taken into account under the plan to the same extent as if Southern Financial had been a
participating employer during that period, up to a maximum of five years.

     Promistar. In determining the length of your service for getting into the plan and for the
purpose of vesting, service in the employ of Promistar before January 18, 2002 is taken into
account under the plan to the same extent as if Promistar had been a participating employer during
that period, up to a maximum of five years.

     BankPittsburgh
Mt. Oliver branch. In determining the length of your service for getting into
the plan and for the purpose of vesting, service in the employ of BankPittsburgh at the Mt. Oliver
branch before November 1, 2002 is taken into account under the plan to the same extent as if
BankPittsburgh had been a participating employer during that period, up to a maximum of five
years.

     Brookline and Brentwood branches of First National Bank of Pennsylvania. If you were a
participant in the plan before February 13, 2004 and your employment was terminated due to the
sale of the Brookline and Brentwood branches on that date, you were automatically advanced to full
vesting under the plan.

     Morrell
Butz & Junker. In determining the length of your service for getting into the plan
and for the purpose of vesting, service in the employ of Morrell Butz & Junker before July 30,
2004 is taken into account under the plan to the same extent as if Morrell Butz & Junker had been
a participating employer during that period, up to a maximum of five years.

     Slippery Rock. Any employee who was a participant in the Slippery Rock 401(k) plan
immediately before October 8, 2004 is eligible to participate in this plan effective October 8,
2004 without regard to the age and length of service requirements
that would otherwise apply. In
addition, in determining the length of your service for getting into the plan and for the purpose
of vesting, service in the employ of Slippery Rock before October 8, 2004 is taken into account
under the plan to the same extent as if Slippery Rock had been a participating employer during
that period, up to a maximum of five years.

38

 

     NorthSide
Bank. Any employee who was a participant in the NorthSide Bank 401(k) plan
immediately before February 18, 2005 is eligible to participate in this plan effective February 18,
2005 without regard to the age and length of service requirements that would otherwise apply. In
addition, in determining the length of your service for getting into the plan and for the purpose
of vesting, service in the employ of NorthSide Bank before February 18, 2005 is taken into account
under the plan to the same extent as if NorthSide Bank had been a participating employer during
that period, up to a maximum of five years.

     National Bank of Northeast. In determining the length of your service for getting into the
plan and for the purpose of vesting, service in the employ of Northeast before October 7, 2005 is
taken into account under the plan to the same extent as if Northeast had been a participating
employer during that period, up to a maximum of five years.

     Penn Group Insurance. In determining the length of your service for getting into the plan and
for the purpose of vesting, service in the employ of Penn Group Insurance before October 31, 2005
is taken into account under the plan to the same extent as if Penn Group Insurance had been a
participating employer during that period, up to a maximum of five years.

39

 

Table of Dollar Limits

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Pay Used to Determine Restricted Employees	 	 	 	 	 	Dollar Limit on
	 	 	Dollar Limit on	 	Dollar Limit on	 	 	 	 	 	Dollar Plus	 	 	 	 	 	Dollar Limit on	 	Pay Taken into
	 	 	401(k)	 	Catch-Up	 	 	 	 	 	Top-Paid	 	Dollar Plus	 	Total	 	Account under
	Year	 	Contributions	 	Contributions	 	Flat Dollar	 	Group	 	Officer	 	Contributions	 	the Plan
	1989
	 	$	7,627	 	 	 	N/A	 	 	$	81,720	 	 	$	54,480	 	 	$	49,032	 	 	$	30,000	 	 	$	200,000	 
	1990
	 	$	7,979	 	 	 	N/A	 	 	$	85,485	 	 	$	56,960	 	 	$	51,291	 	 	$	30,000	 	 	$	209,2000	 
	1991
	 	$	8,475	 	 	 	N/A	 	 	$	90,803	 	 	$	60,535	 	 	$	54,482	 	 	$	30,000	 	 	$	222,220	 
	1992
	 	$	8,728	 	 	 	N/A	 	 	$	93,518	 	 	$	62,345	 	 	$	56,111	 	 	$	30,000	 	 	$	228,860	 
	1993
	 	$	8,994	 	 	 	N/A	 	 	$	96,368	 	 	$	64,245	 	 	$	57,821	 	 	$	30,000	 	 	$	235,840	 
	1994
	 	$	9,240	 	 	 	N/A	 	 	$	99,000	 	 	$	66,000	 	 	$	59,400	 	 	$	30,000	 	 	$	150,000	 
	1995
	 	$	9,240	 	 	 	N/A	 	 	$	100,000	 	 	$	66,000	 	 	$	60,000	 	 	$	30,000	 	 	$	150,000	 
	1996
	 	$	9,500	 	 	 	N/A	 	 	$	100,000	 	 	$	66,000	 	 	$	60,000	 	 	$	30,000	 	 	$	150,000	 
	1997
	 	$	9,500	 	 	 	N/A	 	 	$	80,000	 	 	 	N/A	 	 	 	N/A	 	 	$	30,000	 	 	$	160,000	 
	1998
	 	$	10,000	 	 	 	N/A	 	 	$	80,000	 	 	 	N/A	 	 	 	N/A	 	 	$	30,000	 	 	$	160,000	 
	1999
	 	$	10,000	 	 	 	N/A	 	 	$	80,000	 	 	 	N/A	 	 	 	N/A	 	 	$	30,000	 	 	$	160,000	 
	2000
	 	$	10,500	 	 	 	N/A	 	 	$	85,000	 	 	 	N/A	 	 	 	N/A	 	 	$	30,000	 	 	$	170,000	 
	2001
	 	$	10,500	 	 	 	N/A	 	 	$	85,000	 	 	 	N/A	 	 	 	N/A	 	 	$	35,000	 	 	$	170,000	 
	2002
	 	$	11,000	 	 	$	1,000	 	 	$	90,000	 	 	 	N/A	 	 	 	N/A	 	 	$	40,000	 	 	$	200,000	 
	2003
	 	$	12,000	 	 	$	2,000	 	 	$	90,000	 	 	 	N/A	 	 	 	N/A	 	 	$	40,000	 	 	$	200,000	 
	2004
	 	$	13,000	 	 	$	3,000	 	 	$	90,000	 	 	 	N/A	 	 	 	N/A	 	 	$	41,000	 	 	$	205,000	 
	2005
	 	$	14,000	 	 	$	4,000	 	 	$	95,000	 	 	 	N/A	 	 	 	N/A	 	 	$	42,000	 	 	$	210,000	 
	2006
	 	$	15,000	 	 	$	5,000	 	 	$	100,000	 	 	 	N/A	 	 	 	N/A	 	 	$	44,000	 	 	$	220,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]