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|                                           |   |                                                     | Page   |
|------------------------------------------------|--------|----------------------------------------------------------|--------|
|                                           |   |                                                     |   |
| ARTICLE                I                       |
|                                           |   |                                                     |
| STATEMENT                OF PURPOSE            | 1      |
|                                           |   |                                                     |   |
| ARTICLE                II                      |
|                                           |   |                                                     |   |
| DEFINITIONS                                    | 2      |
|                                           | 2.01   | Terms                                                    | 2      |
|                                           | 2.02   | Affiliated                Company                        | 2      |
|                                           | 2.03   | Assumed                Deferred Vested Pension Benefit   | 2      |
|                                           | 2.04   | Assumed                Early Retirement Pension Benefit  | 2      |
|                                           | 2.05   | Assumed                Normal Retirement Pension Benefit | 3      |
|                                           | 2.06   | Board                                                    | 3      |
|                                           | 2.07   | Change                in Control                         | 3      |
|                                           | 2.08   | Committee                                                | 5      |
|                                           | 2.09   | Company                                                  | 5      |
|                                           | 2.10   | Continuing                Director                       | 5      |
|                                           | 2.11   | Designated                Beneficiary                    | 6      |
|                                           | 2.12   | Early                Retirement Date                     | 6      |
|                                           | 2.13   | Eligible                Spouse                           | 6      |
|                                           | 2.14   | Final                Average Salary                      | 6      |
|                                           | 2.15   | Normal                Retirement Date                    | 7      |
|                                           | 2.16   | Participant                                              | 7      |
|                                           | 2.17   | Pension                                                  | 7      |
|                                           | 2.18   | Plan                                                     | 7      |
|                                           | 2.19   | Retirement                Plan                           | 7      |
|                                           | 2.20   | Salary                                                   | 7      |
|                                           | 2.21   | Separation                from Service                   | 8      |
|                                           | 2.22   | Service                                                  | 8      |
|                                           | 2.23   | Social                Security Benefit                   | 8      |
|                                           | 2.24   | Spouse’s                Pension                    | 10     |
|                                           | 2.25   | Target                Early Retirement Benefit           | 10     |
|                                           | 2.26   | Target                Normal Retirement Benefit          | 10     |
|                                           | 2.27   | Target                Pre-Retirement Death Benefit       | 10     |
|                                           | 2.28   | Target                Severance Benefit                  | 10     |
|                                           |   |                                                     |   |
| ARTICLE                III                     |
|                                           |   |                                                     |   |
| ELIGIBILITY                AND PARTICIPATION   | 10     |
|                                           | 3.01   | Eligibility                                              | 10     |
|                                           | 3.02   | Date                of Participation                     | 11     |
|                                           | 3.03   | Duration                of Participation                 | 11     |
|                                           |   |                                                     |   |
| ARTICLE                IV                      |
|                                           |   |                                                     |   |
| RETIREMENT                BENEFITS             | 11     |
|                                           | 4.01   | Normal                Retirement Benefit                 | 11     |
|                                           | 4.02   | Early                Retirement Benefit                  | 13     |
|                                           | 4.03   | Surviving                Spouse Benefit                  | 15     |
|                                           | 4.04   | Re-employment                of Retirement Participant   | 15     |
|                                           |   |                                                     |   |
| ARTICLE                V                       |
|                                           |   |                                                     |   |
| PRE-RETIREMENT                DEATH BENEFITS   | 15     |
|                                           | 5.01   | Eligibility                                              | 15     |
|                                           | 5.02   | Amount                                                   | 16     |
|                                           | 5.03   | Alternative                Benefit                       | 16     |
|                                           | 5.04   | Commencement                and Duration                 | 16     |
|                                           |   |                                                     |   |
| ARTICLE                VI                      |
|                                           |   |                                                     |   |
| SEVERANCE                BENEFITS              | 16     |
|                                           | 6.01   | Eligibility                                              | 16     |
|                                           | 6.02   | Amount                                                   | 17     |
|                                           | 6.03   | Commencement                and Duration                 | 17     |
|                                           | 6.04   | Surviving                Spouse Benefit                  | 18     |
|                                           |   |                                                     |   |
| ARTICLE                VII                     |
|                                           |   |                                                     |   |
| ADMINISTRATION                                 | 19     |
|                                           | 7.01   | Committee                                                | 19     |
|                                           | 7.02   | Voting                                                   | 19     |
|                                           | 7.03   | Records                                                  | 19     |
|                                           | 7.04   | Liability                                                | 20     |
|                                           | 7.05   | Expenses                                                 | 20     |
|                                           |   |                                                     |   |
| ARTICLE                VIII                    |
|                                           |   |                                                     |   |
| AMENDMENT                AND TERMINATION       | 20     |
|                                           |   |                                                     |   |
|                                           |   |                                                     |   |
|                                           |   |                                                     |   |
|                                           |   |                                                     |   |
|                                           |   |                                                     |   |
| ARTICLE                IX                      |
|                                           |   |                                                     |   |
| MISCELLANEOUS                                  | 21     |
|                                           | 9.01   | Non-Alienation                of Benefits                | 21     |
|                                           | 9.02   | No                Trust, Created                         | 21     |
|                                           | 9.03   | No                Employment Agreement                   | 22     |
|                                           | 9.04   | Binding                Effect                            | 22     |
|                                           | 9.05   | Suicide                                                  | 22     |
|                                           |   |                                                     |   |
| ARTICLE                X                       |
|                                           |   |                                                     |   |
| CONSTRUCTION                                   | 24     |
|                                           | 10.01  | Governing                Law                             | 24     |
|                                           | 10.02  | Gender                                                   | 24     |
|                                           | 10.03  | Headings,                etc.                            | 24     |
|                                           | 10.04  | Action                                                   | 24     |
|                                           |   |                                                     |   |
| APPENDIX                A AFFILIATED COMPANIES |   |
|                                           |   |                                                     |   |

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| 2.01   | Terms.                Unless otherwise clearly required by the context, the terms used                herein                shall have the following meaning. Capitalized terms that are not                defined                below shall have the meaning ascribed to them in the Retirement                Plan. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.02   | Affiliated                Company.                Shall mean any corporation or other entity that is required to be                aggregated with the Sponsor pursuant to Section 414(b), (c), (m), or                (o) of the Code, but only to the extent                required. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.03   | Assumed                Deferred Vested Pension Benefit.                Shall mean the monthly benefit of the deferred vested Pension to                commence                on his Normal Retirement Date payable in the form of an annuity to                which a                separated Participant would be entitled under the Retirement Plan,                calculated with the following assumptions based on such Participant’s                marital status at the time benefits hereunder                commence: |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | In                the case of a Participant with an Eligible Spouse, in the form of                a 50%                Qualified Joint and Survivor Annuity as provided in the Retirement                Plan. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | In                the case of a Participant without an Eligible Spouse, in the form                of a                Single Life Annuity as provided in the Retirement                Plan. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Without                regard to any other benefit payment option under the Retirement Plan. |
|-----------------|----------------------------------------------------------------------------------------------|

| 2.04   | Assumed                Early Retirement Pension Benefit.                Shall mean the monthly benefit of the normal retirement Pension payable                in                the form of an annuity to which a Participant would be entitled under                the                Retirement Plan at his Normal Retirement Date, based upon his projected                years of Service at his Normal Retirement Date and calculated with                the                following assumptions based upon his marital status at the time benefits                hereunder commence: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | In                the case of a Participant with an Eligible Spouse, in the form of                a 50%                Qualified Joint and Survivor Annuity as provided in the Retirement                Plan. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | In                the case of a Participant without an Eligible Spouse, in the form                of a                Single Life Annuity as provided in the Retirement                Plan. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Without                regard to any other benefit payment option under the Retirement Plan. |
|-----------------|----------------------------------------------------------------------------------------------|

| 2.05   | Assumed                Normal Retirement Pension Benefit.                Shall mean the monthly benefit of the normal retirement Pension payable                in                the form of an annuity to which a Participant would be entitled under                the                Retirement Plan if he retired at his Normal Retirement Date, calculated                with the following assumptions based on his marital status at the                time                benefits hereunder commence: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | In                the case of a Participant with an Eligible Spouse, in the form of                a 50%                Qualified Joint and Survivor Annuity as provided in the Retirement                Plan. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | In                the case of a Participant without an Eligible Spouse, in the form                of a                Single Life Annuity as provided in the Retirement                Plan. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Without                regard to any other benefit payment option under the Retirement                Plan. |
|-----------------|-------------------------------------------------------------------------------------------------------------|

| 2.06   | Board.                Shall mean the Board of Directors of                Sponsor. |
|------------------|------------------------------------------------------------------------------------|

| 2.07   | Change                in Control.                Shall occur on the earliest of the following                dates: |
|------------------|---------------------------------------------------------------------------------------------------------------------|

| (a)   | the                date any person or group of persons (within the meaning of Section                13(d)                or 14(d) of the Securities Exchange Act of 1934), excluding employee                benefit plans of the Sponsor, becomes, directly or indirectly, the                “beneficial owner” (as defined in Rule 13d-3 promulgated under the                Securities Act of 1934) of securities of the Sponsor representing                twenty-five percent (25%) or more of the combined voting power of                the                Sponsor’s then outstanding securities (excluding the acquisition of                securities of the Sponsor by an entity at least eighty percent (80%)                of                the outstanding voting securities of which are, directly or indirectly,                beneficially owned by the Sponsor);                or |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | the                date of consummation of a tender offer for the ownership of more                than                fifty percent (50%) of the Sponsor’s then outstanding voting securities;                or |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | the                date of consummation of a merger, share exchange or consolidation                of the                Sponsor with any other corporation or entity regardless of which                entity is                the survivor, other than a merger, share exchange or consolidation                which                would result in the voting securities of the Sponsor outstanding                immediately prior thereto continuing to represent (either by remaining                outstanding or being converted into voting securities of the surviving                or                acquiring entity) more than sixty percent (60%) of the combined voting                power of the voting securities of the Sponsor or such surviving or                acquiring entity outstanding immediately after such merger or                consolidation; or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | the                date, when as a result of a tender offer or exchange offer for the                purchase of securities of the Sponsor (other than such an offer by                the                Sponsor for its own securities), or as a result of a proxy contest,                merger, share exchange, consolidation or sale of assets, or as a                result of                any combination of the foregoing, individuals who are Continuing                Directors                cease for any reason to constitute at least two-thirds (2/3) of the                members of the Board; or |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (e)   | the                date the shareholders of the Sponsor approve a plan of complete                liquidation or winding-up of the Sponsor or an agreement for the                sale or                disposition by the Sponsor of all or substantially all of the Sponsor’s                assets; or |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (f)   | the                date of any event which the Board determines should constitute a                Change in                Control. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------|

| 2.08   | Committee.                Shall mean the Committee on Organization and Compensation of the                Board. |
|------------------|------------------------------------------------------------------------------------------------------------------|

| 2.09   | Company.                Shall mean Progress Energy, Inc. or any successor to it in the ownership                of substantially all of its assets, and each Affiliated Company that,                with                the consent of the Board adopts the Plan and is included in Appendix                A,                as in effect from time to time. Appendix                A                shall set forth any limitations imposed on employees of Affiliated                Companies that adopt the Plan, including limitations on “Service,”                notwithstanding any provision of the Plan to the                contrary. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.10   | Continuing                Director.                Shall mean the members of the Board as of January 1, 2007; provided,                however, that any person becoming a Director subsequent to such date                whose                election or nomination for election was supported by seventy-five                percent                (75%) or more of the Directors                who then comprised Continuing Directors shall be considered to be                a                Continuing Director. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.11   | Designated                Beneficiary.                Shall mean one or more beneficiaries as designated by a Participant                in                writing delivered to the Committee. In the event no such written                designation is made by a Participant or if such beneficiary shall                not be                living or in existence at the time for commencement of payment to                any                Designated Beneficiary under the Plan, the Participant shall be deemed to                have designated his estate as such                beneficiary. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.12   | Early                Retirement Date.                Shall mean the date on which a Participant who qualifies for the                early                retirement benefit of Section 4.02 hereof retires from the employ of                the Company and its affiliated                entities. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.13   | Eligible                Spouse.                Shall mean the spouse of a Participant who, under the laws of the                State                where the marriage was contracted, is deemed married to that Participant                on the date on which the payments from this Plan are to begin to                the                Participant, except that for purposes of Articles V and VI hereof,                Eligible Spouse shall mean a person who is married to a Participant                for a                period of at least one year prior to his                death. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.14   | Final                Average Salary.                Shall mean a Participant’s average monthly Salary (as defined in                Section 2.20 hereof) during the 36 completed calendar months of                highest compensation within the 120-month period immediately preceding                the                earliest to occur of the Participant’s death, Separation from Service,                Early Retirement Date, or Normal Retirement Date, whichever is applicable.                Provided, however, if a Participant becomes entitled to a benefit                hereunder while under a period of long-term disability under the                Sponsor’s                Group Insurance Plan, Final Average Salary shall be determined for                the 12                calendar months immediately preceding the commencement of such period                of                long-term disability. Provided, further, in determining average monthly                Salary (i) annual incentives and other similar payments shall be                deemed                received in twelve (12) equal payments beginning with the eleventh                preceding month and ending with the month in which actual payment                is made,                and (ii) amounts of compensation deferred under any deferred compensation                plan or arrangement shall be deemed received in the months such payments                would have been received assuming no deferral had occurred. For years                of                Service granted under the terms of a written employment agreement                as                provided under Section 2.22, Salary during each such month is deemed                to be zero dollars ($0.00) for purposes of calculating Final Average                Salary. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.15   | Normal                Retirement Date.                Shall mean the first day of the calendar month coinciding with or                next                following the Participant’s 65th                birthday. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.16   | Participant.                Shall mean an employee of the Company who is eligible and is participating                in this Plan in accordance with Article III                hereof. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.17   | Pension.                Shall mean a level monthly annuity which is payable under the Retirement                Plan as of the Benefit Commencement Date if the Participant elected                an                annuity form of benefit. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.18   | Plan.                Shall mean the “Supplemental Senior Executive Retirement Plan of Progress                Energy, Inc.” as contained herein and as it may be amended from time to                time hereafter. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.19   | Retirement                Plan.                Shall mean the “Progress Energy Pension Plan” (as amended effective                January 1, 2002) as it may be amended from time to time                thereafter. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.20   | Salary.                Shall mean the sum of: |
|------------------|-----------------------------------------------|

| (1)   | The                annual base compensation paid by the Company to a Participant,                and |
|-----------------|------------------------------------------------------------------------------------------------------|

| (2)   | annual                cash awards made under incentive compensation programs excluding,                however,                any payment made under the Sponsor’s Long-Term Compensation Program or the                Sponsor’s 1997 and 2002 Equity Incentive Plans,                and |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | amounts                of annual compensation deferred under any deferred compensation plan                or                arrangement (including, without limitation, the “Executive Deferred                Compensation Plan,” the “Deferred Compensation Plan for Key Management                Employees of Progress Energy, Inc.,” the “Progress Energy, Inc. Management                Deferred Compensation Plan” and the “Progress Energy 401(k) Savings and                Stock Ownership Plan”) and which, but for the deferral, would have been                reflected in Internal Revenue Service Form W-2. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.21   | Separation                from Service.                Shall mean the date the Participant leaves the employ of the Company                and                all affiliated entities other than on account of his death, a period                of                long-term disability under the Company’s long-term disability plan, or                retirement at either his Early Retirement Date or upon or after his                Normal                Retirement Date.                Separation from Service under this Section 2.21 must also be “separation                from service,” as defined for purposes of Section                409A. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.22   | Service.                Shall have the same meaning as “Eligibility Service,” determined as                provided in Sections 2.02 and 3.01 of the Retirement Plan, plus any                additional years of service that may be granted to the Participant                in                connection with this Plan under the terms of a written employment                agreement (or any amendment thereto) entered into between the Company                and                the Participant. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.23   | Social                Security Benefit.                Means the monthly amount of benefit which a Participant is or would                be                entitled to receive at age 65 as a primary insurance amount under                the                federal Social Security Act, as amended, whether or not he applies                for                such benefit, and even though he may lose part or all of such benefit                through delay in applying for it, by making application prior to                age 65                for a reduced benefit, by entering into covered employment, or for                any                other reason. The amount of such Social Security Benefit to which                the                Participant is or would be entitled shall be estimated by the Committee                for the purposes of this Plan as of the January 1 of the year in                which his                Separation from Service or retirement occurs on the following                basis: |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (a)   | For                a Participant entitled to a normal retirement benefit, on the basis                of the                federal Social Security Act as in effect on the January 1 coincident                with                or next preceding his Normal Retirement Date (regardless of any                retroactive changes made by legislation enacted after said January                1); |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | For                a Participant entitled to an early retirement benefit, on the basis                of the                federal Social Security Act as in effect on the January 1 coincident                with                or next preceding his Early Retirement Date (regardless of any retroactive                change made by legislation enacted after said January 1), assuming                that                his employment, and Salary in effect at his Early Retirement Date,                continued to age 65; or |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | For                a Participant entitled to a severance benefit, on the basis of the                federal                Social Security Act as in effect on the January 1 coincident with                or next                preceding his Separation from Service (regardless of any retroactive                change made by legislation enacted after said January 1), assuming                that                his employment, and Salary in effect at his Separation from Service,                continued to age 65. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.24   | Spouse’s                Pension.                Shall mean the actual monthly benefit payable to an Eligible Spouse                under                the Retirement Plan, assuming the Eligible Spouse elected a 50% Joint                and                Survivor Annuity form of benefit. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.25   | Target                Early Retirement Benefit.                Shall mean an amount equal to a Participant’s Final Average Salary                determined at his Early Retirement Date multiplied by four percent                (4%)                for each projected year of Service at his Normal Retirement Date                up to a                maximum of sixty-two percent (62%). |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.26   | Target                Normal Retirement Benefit.                Shall mean an amount equal to a Participant’s Final Average Salary                determined at his Normal Retirement Date multiplied by four percent                (4%)                for each projected year of Service at his Normal Retirement Date                up to a                maximum of sixty-two percent (62%). |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.27   | Target                Pre-Retirement Death Benefit.                Shall mean an amount equal to a deceased Participant’s Final Average                Salary determined at his death multiplied by four percent (4%) for                each                year of Service at his death up to a maximum of sixty-two percent                (62%).  |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.28   | Target                Severance Benefit.                Shall mean an amount equal to a Participant’s Final Average Salary                determined at his Separation from Service multiplied by four percent                (4%)                for each year of Service at his Separation from Service up to a maximum                of                sixty-two percent (62%). |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.01   | Eligibility.                Any executive employee of a Company who has served on the Senior                Management Committee of the Sponsor and who has been a Senior Vice                President or above for a minimum period of three (3) years and who                has at                least ten (10) years of Service shall be eligible to participate                in this                Plan. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.02   | Date                of Participation.                Each executive who is eligible to become a Participant under                Section 3.01 shall become a Participant on the first day of the month                following the month in which he is first eligible to                participate. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.03   | Duration                of Participation.                Each executive who becomes a Participant shall continue to be a                Participant until the termination of his employment with the Company                or,                if later, the date he is no longer entitled to benefits under this                Plan. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.01   | Normal                Retirement Benefit. |
|------------------|-------------------------------------------|

| 4.02   | Early                Retirement Benefit. |
|------------------|------------------------------------------|

| (a)   | Eligibility.                A                Participant whose employment with the Company or any Affiliated Company                terminates upon or after his attainment of age fifty-five (55) with                at                least fifteen (15) years of Service (except for purposes of calculating                benefits payable under Article V and Article VI hereinbelow, as                applicable) but prior to his Normal Retirement Date, shall be eligible                for                the early retirement benefit described in this Section 4.02, provided                that such termination of employment is “separation from service,” as                defined for purposes of Section                409A. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Amount                and Form.                The monthly payment hereunder shall be in the form of a Single Life                Annuity if the Participant has no Eligible Spouse and in the form                of a 50%                Qualified Joint and Survivor Annuity if the Participant has an Eligible                Spouse. The eligible Participant’s early retirement benefit shall be a                monthly amount equal to his Target Early Retirement Benefit reduced                by the                sum of (1) his Assumed Early Retirement Pension Benefit and (2) his                Social                Security Benefit; provided, however, such benefit will be reduced,                where                applicable, by the following: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (i)   | The                amount of 2.5% for each year that such benefit is received prior                to his                Normal Retirement Date, and |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| (ii)   | If                such eligible Participant’s projected years of Service at his Normal                Retirement Date are less than fifteen (15), his Target Early Retirement                Benefit and his Assumed Early Retirement Pension Benefit shall be                calculated based upon his actual years of Service at his Early Retirement                Date rather than upon his projected years of Service at his Normal                Retirement Date. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Commencement                and Duration.                Monthly early retirement benefit payments shall commence as of the                first                day of the calendar month next following the retirement of the Participant                or as soon thereafter as practicable, and shall continue in monthly                installments thereafter ending with a payment for the month in which                such                eligible Participant’s death occurs, unless the benefit is being paid in                the form of a Qualified Joint and Survivor Annuity, in which case                the                survivor benefit shall be paid to the Eligible Spouse, if living,                for his                or her life. If at the time of commencement of payment such eligible                Participant does not have an Eligible Spouse, the monthly benefit                payments                shall be guaranteed for one hundred twenty (120) monthly payments                with any                such guaranteed payments remaining at such Participant’s death payable to                his Designated Beneficiary. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Key                Employees.                Notwithstanding the foregoing, payments with respect to a Participant                who                is a key employee (as defined in Section 416(i) of the Code but determined                without regard to paragraph 5 thereof or the 50 employee limit on                the                number of officers treated as key employees) shall not begin earlier                than                the date that is six months after the date of termination of the                Participant (or, if earlier, the date of death). In the event payments                to                the Participant under this Plan shall be delayed for six months following                the termination of the Participant as provided in this paragraph                (d), the                Participant (if then living) shall receive a lump sum payment as                of the                first day of the seventh month following the termination of employment                in                an amount equal to six times the monthly payment due to the Participant                under this Plan, plus the monthly payment then due to the Participant.                If                the Participant dies following termination of employment but prior                to the                commencement of payments under this paragraph (d), the Participant’s                surviving Eligible Spouse, if any, or Designated Beneficiary shall                be                entitled to receive the same death benefit payable in the event the                Participant had commenced receiving benefit payments as of the first                day                of the month prior to his death. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.03   | Surviving                Spouse Benefit.                The surviving Eligible Spouse of a Participant who is entitled to                receive                a Qualified Joint and Survivor Benefit as a normal retirement benefit                or                as an early retirement benefit shall be eligible for the surviving                spouse                benefit upon the death of the Participant for the duration of the                Eligible                Spouse’s life. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.04   | Re-employment                of Retired Participant.                A                retired Participant receiving or eligible to receive the retirement                benefits described in Sections 4.01 and 4.02 hereof who is reemployed                by the Company shall be ineligible to again participate in this                Plan. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.01   | Eligibility.                A                Participant’s surviving Eligible Spouse shall be eligible for the pre-                retirement death benefit as described in this Article V if such                Participant dies while in the employ of the Company with 10 or more                years                of Service. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.02   | Amount.                Such surviving Eligible Spouse shall be entitled to a monthly                pre-retirement death benefit payable in the form of an annuity in                an                amount equal to the difference, if any, between (a) forty percent                (40%) of                the Target Pre-Retirement Death Benefit and (b) the Spouse’s                Pension. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.03   | Alternative                Benefit.                If greater than the monthly benefit of Section 5.02 hereof, the                surviving Eligible Spouse of a Participant who dies while in the                employ of                the Company after attaining age fifty-five (55) with fifteen (15)                years of                Service shall be entitled to a monthly pre-retirement death benefit                equal                to fifty percent (50%) of the early retirement benefit the Participant                would have been entitled to receive under Section 4.02 hereof                (calculated using both reductions, where applicable, in                subsections 4.02(b)(i) and 4.02(b)(ii)) as if he had retired                immediately prior to his death with the recommendation of the Chief                Executive Officer and approval of the                Committee. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.04   | Commencement                and Duration.                The surviving Eligible Spouse’s monthly pre-retirement death benefit                payments shall commence in the month following the Participant’s death and                shall be paid in monthly installments thereafter ending with a payment                for                the month in which such surviving Eligible Spouse’s death                occurs. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.01   | Eligibility.                Upon his Separation from Service from the Company or any Affiliated                Company, a Participant who has completed ten (10) or more years of                Service                but is not eligible for a retirement benefit under Article IV shall                be                eligible for one of the severance benefits described in this Article                VI. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.02   | Amount.  |
|------------------|---------------|

| (a)   | If                at Separation from Service such eligible Participant is not entitled                to a                deferred vested Pension pursuant to Section 5.03 of the Retirement                Plan or an early retirement Pension pursuant to Section 5.02 of the                Retirement Plan, his severance benefit shall be a monthly amount                equal to                his Target Severance Benefit reduced by his Social Security                Benefit. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | If                at Separation from Service such eligible Participant is entitled                to a                deferred vested Pension pursuant to Section 5.03 of the Retirement                Plan, his severance benefit shall be a monthly amount equal to his                Target                Severance Benefit reduced by the sum of (1) his Assumed Deferred                Vested                Pension Benefit and (2) his Social Security                Benefit. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | If                at his Separation from Service such eligible Participant is entitled                to an                early retirement Pension pursuant to Section 5.02 of the Retirement                Plan, his severance benefit shall be a monthly amount equal to his                Target                Severance Benefit reduced by the sum of (1) his Assumed Early Retirement                Pension Benefit and (2) his Social Security Benefit; provided, however,                such Assumed Early Retirement Pension Benefit shall be calculated                based                upon his actual years of Service at his Separation from Service rather                than upon his projected years of Service at his Normal Retirement                Date. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.03   | Commencement                and Duration. |
|------------------|-------------------------------------------|

| (a)   | General.                Monthly severance benefit payments shall commence as of the eligible                Participant’s Normal Retirement Date and shall continue in monthly                installments thereafter ending with a payment for the month in which                such                eligible Participant’s death                occurs. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Key                Employees.                Notwithstanding the foregoing, payments with respect to a Participant                who                is a key employee (as defined in Section 416(i) of the Code but determined                without regard to paragraph 5 thereof or the 50 employee limit on                the                number of officers treated as key employees) shall not begin earlier                than                the date that is six months after the date of termination of the                Participant (or, if earlier, the date of death). In the event payments                to                the Participant under this Plan shall be delayed for six months following                the termination of the Participant as provided in this paragraph                (b), the                Participant (if then living) shall receive a lump sum payment as                of the                first day of the seventh month following the termination of employment                in                an amount equal to six times the monthly payment due to the Participant                under this Plan, in addition to the monthly payment then due to the                Participant. If the Participant dies following termination of employment                but prior to the commencement of payments under this paragraph (b),                the                Participant’s surviving Eligible Spouse, if any, shall be eligible for the                surviving spouse benefit provided in Section                6.04. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.04   | Surviving                Spouse Benefit.  |
|------------------|------------------------------------------------|

| (a)   | Eligibility.                The surviving Eligible Spouse of a Participant who is receiving or                who                dies after attaining age fifty-five (55) entitled to receive a severance                benefit hereunder shall be eligible for the surviving spouse benefit                described in this                Section 6.04. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Benefit                Amount.                Such surviving Eligible Spouse shall be entitled to a monthly surviving                spouse benefit in an amount equal to fifty percent (50%) of the severance                benefit which the deceased Participant was receiving or entitled                to                receive at his Normal Retirement Date under either Section 6.02(a) or                6.02(b) hereof on the day before his                death. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Commencement                and Duration.                The monthly surviving spouse benefit payment shall commence in the                month                following the Participant’s death and shall be paid in monthly                installments thereafter ending with a payment for the month in which                such                surviving Eligible Spouse’s death                occurs. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.01   | Committee.                This Plan shall be administered by the Committee. The Committee shall                have                all powers necessary to enable it to carry out its duties in the                administration of the Plan. Not in limitation, but in application                of the                foregoing, the Committee shall have the duty and power to determine                all                questions that may arise hereunder as to the status and rights of                Participants in the Plan. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.02   | Voting.                The Committee shall act by a majority of the number then constituting                the                Committee, and such action may be taken either by vote at a meeting                or in                writing, without a meeting. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.03   | Records.                The Committee shall keep a complete record of all its proceedings                and all                data relating to the administration of the Plan. The Committee shall                select one of its members as a Chairman. The Committee shall appoint                a                Secretary to keep minutes of its meetings and the Secretary may or                may not                be a member of the Committee. The Committee shall make such rules                and                regulations for the conduct of its business as it shall deem                advisable.  |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.04   | Liability.                To the extent permitted by law, no member of the Committee shall                be liable                to any person for any action taken or omitted in connection with                the                interpretation and administration of this Plan unless attributable                to his                own gross negligence or willful misconduct. The Sponsor shall indemnify                the members of the Committee against any and all claims, losses,                damages,                expenses, including counsel fees, incurred by them, and any liability,                including any amounts paid in settlement with their approval, arising                from                their action or failure to act, except when the same is judicially                determined to be attributable to their gross negligence or willful                misconduct. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 7.05   | Expenses.                The cost of payments from this Plan and the expenses of administering                the                Plan shall borne by each Company with respect to its own                employees. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.01   | Non-Alienation                of Benefits.                No right or benefit under the Plan shall be subject to anticipation,                alienation, sale, assignment, pledge, encumbrance, or charge, and                any                attempt to anticipate, alienate, sell, assign, pledge, encumber,                or charge                any right or benefit under the Plan shall be void. No right or benefit                hereunder shall in any manner be liable for or subject to the debts,                contracts, liabilities or torts of the person entitled to such benefits.                If the Participant or Eligible Spouse shall become bankrupt, or attempt                to                anticipate, alienate, sell, assign, pledge, encumber, or charge any                right                hereunder, then such right or benefit shall, in the discretion of                the                Committee, cease and terminate, and in such event, the Committee                may hold                or apply the same or any part thereof for the benefit of the Participant                or his spouse, children, or other dependents, or any of them, in                such                manner and in such amounts and proportions as the Committee may deem                proper. |
|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.02   | No                Trust Created.                The obligations of the Sponsor and each Company to make payments                hereunder                shall constitute a liability of the Sponsor and each Company, as                the case                may be, to a Participant. Such payments shall be made from the general                funds of the Sponsor or a Company, and the Sponsor or a Company shall                not                be required to establish or maintain any special or separate fund,                or                purchase or acquire life insurance on a Participant’s life, or otherwise                to segregate assets to assure that such payment shall be made, and                neither                a Participant nor Eligible Spouse shall have any interest in any                particular asset of the Sponsor or a Company by reason of its obligations                hereunder. Nothing contained in the Plan shall create or be construed                as                creating a trust of any kind or any other fiduciary relationship                between                the Sponsor, a Company and a Participant or any other                person. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.03   | No                Employment Agreement.                Neither the execution of this Plan nor any action taken by the Sponsor                or                a Company pursuant to this Plan shall be held or construed to confer                on a                Participant any legal right to be continued as an employee of the                Sponsor                or a Company in an executive position or in any other capacity whatsoever.                This Plan shall not be deemed to constitute a contract of employment                between the Sponsor or a Company and a Participant, nor shall any                provision herein restrict the right of any Participant to terminate                his                employment with the Sponsor or a                Company. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.04   | Binding                Effect.                Obligations incurred by the Sponsor or a Company pursuant to this                Plan                shall be binding upon and inure to the benefit of the Sponsor or                a                Company, its successors and assigns, and the Participant or his Eligible                Spouse. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.05   | Suicide.                No benefit shall be payable under the Plan to a Participant or Eligible                Spouse where such Participant dies as a result of suicide within                two (2)                years of his commencement of participation                herein. |
|------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.06   | Claims                for Benefits.                Each Participant or Eligible Spouse must claim any benefit to which                he is                entitled under this Plan by a written notification to the Committee.                If a                claim is denied, it must be denied within a reasonable period of                time, and                be contained in a written notice stating the                following: |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.07   | Entire                Plan.                This document and any amendments contain all the terms and provisions                of                the Plan and shall constitute the entire Plan, any other alleged                terms or                provisions being of no effect. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.08   | Change                in Control.                In the event of a Change in Control, the Sponsor shall irrevocably                set                aside funds in one or more grantor trusts in an amount that is sufficient                to pay each Participant (or Designated Beneficiary) the amount of                benefits                accrued under the Plan as of the date of the Change in Control. Any                such                trust shall be subject to the claims of the general creditors of                the                Company in the event of the bankruptcy or insolvency of the Company. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.09   | Acceleration                of Payment.                The acceleration of the time or schedule of any payment due under                the Plan                is prohibited except as provided in regulations and administrative                guidance provided under Section 409A. It is not an acceleration of                the                time or schedule of payment if the Company waives or accelerates                the                vesting requirements applicable to a benefit under the Plan.  |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.01   | Governing                Law.                This Plan shall be construed and governed in accordance with the                laws of                the State of North Carolina to the extent not preempted by Federal                Law. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.02   | Gender.                The masculine gender, where appearing in the Plan, shall be deemed                to                include the feminine gender, and the singular may include the plural,                unless the context clearly indicates to the                contrary. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.03   | Headings,                etc.                The cover page of this Plan, the Table of Contents and all headings                used                in this Plan are for convenience of reference only and are not part                of the                substance of this Plan. |
|-------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.04   | Action.                Any action under this Plan required or permitted by the Sponsor shall                be                by action of its Board or its duly authorized                designee. |
|-------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**AFFILIATED      COMPANIES**