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|   X | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---------------|--------------------------------------------------------------------------------------|

|  __ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM |
|----------|-------------------------------------------------------------------------------------------------------------------------|

| Delaware                                                       | 75-0571592                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| 5051 Westheimer RoadHouston, Texas                             |   77056-5622               |
| (Address of principal executive offices)                       | (Zip Code)                           |

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| ·   | the appropriate level of compensation for the Company’s named executive officers, including the Chief Executive Officer, and all other Senior Executives; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | administers and determines grants to be made under the Stock and Incentive Plan; |
|--------------------|----------------------------------------------------------------------------------|

| ·   | administers the Second Amended Bonus Plan; and |
|--------------------|------------------------------------------------|

| ·   | reviews and recommends to the Board any changes to director compensation. |
|--------------------|---------------------------------------------------------------------------|

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| ·   | compensation that drives achievement of the Company’s strategic and tactical goals in a manner consistent with Company values; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------|

| ·   | compensation programs and components that appropriately differ across business segments to drive each segment’s unique business strategy; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | compensation programs that support successful recruiting, development and retention of the Company’s human resources; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   | competitive compensation structures and opportunities within the Company’s respective targeted labor markets, focused on mid-range compensation levels as measured among peer group organizations, with adjustments from mid-range to support Company objectives; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | compensation that rewards dedication to achieving results through focused hard work, flexibility and commitment, individual ownership and accountability and innovation enhancing efficiency, profitability and performance; and |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | compensation that communicates recognition of exceptional performance and dissatisfaction with substandard performance. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------|

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| Component of Pay     | Purpose                                                                                                                                                                                                                                                                                                                                                                             |
|----------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Base Salary          | · Pay for:- Experience- Expertise/ knowledge- Advancement in role- External comparability                                                                                                                                                                                                                                                             |
| Short-Term Incentive | · Motivate near-term “drivers” of stockholder value- Short-term financial and operational performance- Execution of strategic objectives- Individual contributions to team results· Provide timely recognition of performance and accomplishments                                                                               |
| Long-Term Incentive  | · Directly align rewards with stockholder returns and share performance· Create a significant retention mechanism for difficult-to-replace employees· Provide a unifying reward structure across the Company· Support entrepreneurial and long-term, strategic perspectives                                                                 |
| Benefits             | · Provide the access and means for employees to build financial security· Reward service and retention· Encourage individual ownership and accountability for personal financial security· Pursue tax-advantaged compensation where available· Provide adequate and competitive severance benefits for certain termination events |

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| ·   | discussion of the competitive benchmarking data prepared by the Committee’s Compensation Advisor with respect to the Company’s other named executive officers; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | consultation with the Committee on performance measures, target goals and short-term incentive awards applicable to the Company’s other named executive officers under the Company’s Annual Incentive Plan;1 |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | review of the rationale and guidelines for the Company’s annual long-term incentive program and recommendation of grant structure and awards for the Company’s other named executive officers to the Committee; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | provision of information to the Committee regarding the job performance and overall responsibilities of the Company’s other named executive officers. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Company operating and financial performance metrics; |
|--------------------|------------------------------------------------------|

| ·   | Company share performance (both EPS and trading price); |
|--------------------|---------------------------------------------------------|

| ·   | a subjective evaluation of each named executive officer’s current performance (including his or her contributions to the Company's strategic objectives); |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | retention value; |
|--------------------|------------------|

| ·   | past contributions; and |
|--------------------|-------------------------|

| ·   | future potential. |
|--------------------|-------------------|

| ·   | work ethic; |
|--------------------|-------------|

| ·   | job knowledge/technical skills; |
|--------------------|---------------------------------|

| ·   | achievement of financial metrics (EPS, EBIT and budget); |
|--------------------|----------------------------------------------------------|

| ·   | achievement of defined operational goals; |
|--------------------|-------------------------------------------|

| ·   | achievement of strategic aims and targets; |
|--------------------|--------------------------------------------|

| ·   | achievement and contribution to special projects and transactions; |
|--------------------|--------------------------------------------------------------------|

| ·   | advancement in role/responsibility; |
|--------------------|-------------------------------------|

| ·   | management of personnel/department; |
|--------------------|-------------------------------------|

| ·   | problem analysis and mitigation; |
|--------------------|----------------------------------|

| ·   | utilization of human capital and material resources; |
|--------------------|------------------------------------------------------|

| ·   | initiation of, and response to, change, crisis and deadlines; |
|--------------------|---------------------------------------------------------------|

| ·   | management of the Company’s risk profile; |
|--------------------|-------------------------------------------------|

| ·   | planning and organizational ability; |
|--------------------|--------------------------------------|

| ·   | key decision-making; |
|--------------------|----------------------|

| ·   | time management; |
|--------------------|------------------|

| ·   | communication and team development; and |
|--------------------|-----------------------------------------|

| ·   | personal actions and a positive attitude. |
|--------------------|-------------------------------------------|

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| Segment                | Assessment Components                                                                                                                                                                                                                                                         | Basis of Comparison                                                                                                                                          |
|------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Executive Compensation | · Cash compensation· Bonus measures and targets· Stock grants and long-term performance compensation· Prevalence of supplemental benefits, key perquisites and employment  and change in control severance agreements  | · Individual valuations of approximately 20 executive positions· Each executive role compared to a comparable role at peer organizations |

| · Atmos Energy Corporation · CenterPoint Energy · El Paso Corporation · EQT Corporation   | · MDU Resources Group · National Fuel Gas · NiSource Inc. · ONEOK, Inc.   | · Questar Corporation · Spectra Energy Corp. · The Williams Companies · TransCanada Corp.  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

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| · Armstrong World Industries, Inc. · BorgWarner Inc. · Chicago Bridge and Iron Company · Chiquita Brands International, Inc.  | · Donaldson Company, Inc. · Martin Marietta Materials, Inc. · McCormick & Company, Inc. · Molson Coors Brewing Corp. · Nalco Company · Packaging Corporation of America   | · Rayonier Inc. · The Scotts Miracle-Gro Company · The Timberland Co. · Tupperware Corporation · Valmont Industries, Inc. · Williams-Sonoma, Inc.  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | • | Each unit settles in cash in an amount equal to the closing price of Company stock on the date that the restrictions lapse. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------|

|   | • | The restrictions on the units will lapse in pro-rata amounts on each of the first three anniversaries of the grant date. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------|

|   | • | The restriction lapse period on the units will accelerate in the event of a change in control of the Company.  The acceleration will result in the lapse of all restrictions immediately. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| In December 2011, the Committee authorized a grant of cash restricted stock unit awards to certain Company officers and non-officer personnel.  The cash restricted stock units awarded to the Company’s named executive officers permit each of them to receive cash in an amount equal to a specified number of shares of the Company’s common stock valued at the closing price of the Company’s common stock on the dates such restrictions expire.  Restrictions on each such award will expire in equal amounts on the first, second and third anniversaries of the grant date, unless the restrictions or the underlying award are earlier terminated in accordance with the Stock and Incentive Plan or the applicable award agreement.  Restrictions on such awards lapse in the event of a change of control of the Company and the restrictions on the awards of Messrs. Lindemann and Herschmann also lapse in the event of their death, disability or termination without cause.  For purposes of the Merger, the cash restricted stock units awarded will be treated in accordance with the terms and conditions of the Merger Agreement.  The 2011 awards to the Company’s named executive officers were as follows: |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                |   | Cash Restricted Stock Units |   |
|---------------------|--------|-----------------------------|--------|
| George L. Lindemann |   |                        | 71,293 |   |
| Eric D. Herschmann  |   |                        | 71,293 |   |
| Richard N. Marshall |   |                        | 11,289 |   |
| Robert O. Bond      |   |                        | 7,724  |   |
| Monica M. Gaudiosi  |   |                        | 7,724  |   |

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| Name andPrincipal Position                                                             | Year                     | Salary                                  | Bonus                 | Stock Awards                            | Option Awards                           | Non-Equity Incentive Plan Compensation              | Change in Pension Value and Nonqualified Deferred Compensation Earnings | All Other Compensation                   | Total                                                    |
|----------------------------------------------------------------------------------------|--------------------------|-----------------------------------------|-----------------------|-----------------------------------------|-----------------------------------------|-----------------------------------------------------|-------------------------------------------------------------------------|------------------------------------------|----------------------------------------------------------|
|                                                                                   |                     | ($)                                     | ($)                   | ($)                                     | ($)                                     | ($)                                                 | ($)                                                                     | ($)                                      | ($)                                                      |
| (a)                                                                                    | (b)                      | (c)                                     | (d)                   | (e)(1)                                  | (f)(2)                                  | (g)                                                 | (h)                                                                     | (i)                                      | (j)                                                      |
| George L. LindemannChairman of the Board and Chief Executive Officer                   | 2011 2010 2009 | 1,000,000 1,000,000 1,038,462 | -0- -0- -0- | 3,000,009  -0- 732,601   |  -0- 3,179,052 2,709,882 | 6,000,000(3) 3,250,000 2,560,000          | -- -- --                                                      | 436,411(4) 275,542 136,359     | 10,436,420 7,704,594 7,177,304            |
| Eric D. HerschmannVice Chairman of the Board and President and Chief Operating Officer | 2011 2010 2009 | 950,000 950,000 986,538       | -0- -0- -0- | 3,000,009 2,441,585 2,448,744 |  -0- 755,026 817,951     | 6,000,000(3) 3,150,000 2,560,000          | -- -- --                                                 | 71,336 (5)(6) 31,568 23,885    |  10,021,345 (6) 7,328,179 6,837,118  |
| Richard N. MarshallSenior Vice President and Chief Financial Officer                   | 2011 2010 2009 | 486,680 460,385 467,308       | -0- -0- -0- | 475,041 240,089 302,024       |  -0- 211,938 272,654     |  204,649  212,861  225,000 | -- -- --                                                      | 46,096 (7) 40,592 40,054       | 1,212,466 1,165,865 1,307,040             |
| Robert O. BondSenior Vice President, Pipeline Operations                               | 2011 2010 2009 | 575,860 554,191 571,154       | -0- -0- -0- | 325,026 240,089 254,331       |  -0- 211,938 229,605     |  270,957  256,877 206,425       | -- -- --                                                      | 25,255 (8) 26,155 25,839  | 1,197,098 1,289,250 1,287,354                  |
| Monica M. GaudiosiSenior Vice President & General Counsel                          | 2011 2010 2009 | 486,680 460,385 467,308       | -0- -0- -0- | 325,026 240,089 302,024       |  -0- 211,938 272,654     |  204,649  185,000  225,000 | -- -- --                                                      | 27,598 (9) 28,317 21,946       | 1,043,953  1,125,729 1,288,932       |

| (1)   | For a description of the assumptions made in calculating the grant date fair value of the restricted stock in accordance with FASB Accounting Standards Codification Topic 718, Compensation-Stock Compensation, see Note 14 to the Company’s footnotes to its audited financial statements included in its Form 10-K for the year ended December 31, 2011.  There were no forfeitures during this time period. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | For a description of the assumptions made in calculating the grant date fair value of the options in accordance with FASB Accounting Standards Codification Topic 718, Compensation-Stock Compensation, see Note 14 to the Company’s footnotes to its audited financial statements included in its Form 10-K for the year ended December 31, 2011.  There were no forfeitures during this time period. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | This amount represents the named executive officer’s qualified performance-based compensation for purposes of IRC Section 162(m) for the year ended December 31, 2011.  Each of Messrs. Lindemann and Herschmann received a quarterly incentive bonus award under the Second Amended Bonus Plan for the quarter ended June 30, 2011 in the amount of $2,318,880 and for the quarter ended September 30, 2011 in the amount of $2,130,560.  Each of Messrs. Lindemann and Herschmann received annual incentive bonus awards under the Second Amended Bonus Plan in the amount of $1,550,560. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Of this amount, $14,700 relates to Company contributions to Mr. Lindemann’s 401(k) plan, $20,825 relates to non-discretionary Company contributions to his RPA, $2,820 relates to life insurance premiums paid by the Company and $398,066 relates to the incremental cost to the Company of the personal use of Company aircraft by Mr. Lindemann and his spouse. The incremental cost to the Company of the personal use of Company aircraft is calculated based on the actual variable operating costs to the Company.  Variable operating costs include fuel costs, mileage, maintenance, crew travel expenses, catering and other miscellaneous variable costs.  The fixed costs that do not change based on usage, such as pilot salaries, the lease costs of the Company aircraft, hangar expense and general taxes and insurance, are excluded from the incremental cost calculation.  The Company has adopted a corporate aircraft policy that encourages Mr. Lindemann and his spouse to use Company aircraft for all business and non-business purposes for their personal security and safety. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (5)   | Of this amount, $14,700 relates to Company contributions to the officer’s 401(k) plan, $11,025 relates to non-discretionary Company contributions to the officer’s RPA, $1,980 relates to life insurance premiums paid by the Company, $4,490 relates to the cost of personal cell phone usage by Mr. Herschmann and $39,141 relates to the incremental cost to the Company of the personal use of Company aircraft by Mr. Herschmann. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Mr. Herschmann is a partner of, and is compensated by, the Kasowitz Firm, which provides legal services to the Company and certain of its affiliates.  Not included in this amount is $9,503,159 in legal fees (including reimbursement of expenses) for which the Kasowitz Firm billed the Company in 2011. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Of this amount, $14,700 relates to Company contributions to the officer’s 401(k) plan, $29,523 relates to non-discretionary Company contributions to the officer’s RPA and $1,873 relates to life insurance premiums paid by the Company. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | Of this amount, $12,250 relates to Company contributions to the officer’s 401(k) plan, $11,025 relates to non-discretionary Company contributions to the officer’s RPA and $1,980 relates to life insurance premiums paid by the Company. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9)   | Of this amount, $14,700 relates to Company contributions to the officer’s 401(k) plan, $11,025 relates to non-discretionary Company contributions to the officer’s RPA and $1,873 relates to life insurance premiums paid by the Company. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                | Grant Date | Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | Estimated Future Payouts Under Equity Incentive Plan Awards | All other Stock Awards: Number of Shares of Stock or Units | All Other Option Awards:  Number of Securities Under-lying Options | Exercise or Base Price of Option Awards | Grant Date Fair Value of Stock and Option Awards |
|---------------------|------------|---------------------------------------------------------------------|-------------------------------------------------------------|------------------------------------------------------------|------------------------------------------------------------------------------|-----------------------------------------|--------------------------------------------------|
| Threshold           | Target     | Maximum                                                             | Threshold                                                   | Target                                                     | Maximum                                                                      |
|                |       | ($)                                                                 | ($)                                                         | ($)                                                        | ($)                                                                          | ($)                                     | ($)                                              | (#) | (#) | ($/Sh) | ($) |
| (a)                 | (b)        | (c)                                                                 | (d)                                                         | (e)                                                        | (f)                                                                          | (g)                                     | (h)                                              | (i) | (j) | (k) | (l) |
| George L. Lindemann |       | (2)                                                                 | 2,000,000(2)                                                | 6,000,000(2)(3)                                            |                                                                         |                                    |                                             |   |   |   |   |
|                | 11/6/11    |                                                                |                                                        |                                                       |                                                                         |                                    |                                             | 71,293(4) |   |   | 3,000,009 |
|                |       |                                                                |                                                        |                                                       |                                                                         |                                    |                                             |   |   |   |   |
| Eric D. Herschmann  |       | (2)                                                                 | 1,900,000(2)                                                | 6,000,000(2)(3)                                            |                                                                         |                                    |                                             |   |   |   |   |
|                | 11/6/11    |                                                                |                                                        |                                                       |                                                                         |                                    |                                             | 71,293(4) |   |   | 3,000,009 |
|                |       |                                                                |                                                        |                                                       |                                                                         |                                    |                                             |   |   |   |   |
| Richard N. Marshall |       |                                                                |                                                        |                                                       |                                                                         |                                    |                                             |   |   |   |   |
|                | 11/6/11    | 121,670                                                             | 243,340                                                     | 292,008                                                    |                                                                         |                                    |                                             | 11,289(4) |   |   | 475,041 |
|                |       |                                                                |                                                        |                                                       |                                                                         |                                    |                                             |   |   |   |   |
| Robert O. Bond      |       |                                                                |                                                        |                                                       |                                                                         |                                    |                                             |   |   |   |   |
|                | 11/6/11    | 143,965                                                             | 287,930                                                     | 345,516                                                    |                                                                         |                                    |                                             | 7,724(4) |   |   | 325,026 |
|                |       |                                                                |                                                        |                                                       |                                                                         |                                    |                                             |   |   |   |   |
| Monica M. Gaudiosi  |       |                                                                |                                                        |                                                       |                                                                         |                                    |                                             |   |   |   |   |
|                | 11/6/11    | 121,670                                                             | 243,340                                                     | 292,008                                                    |                                                                         |                                    |                                             | 7,724(4) |   |   | 325,026 |
|                |       |                                                                |                                                        |                                                       |                                                                         |                                    |                                             |   |   |   |   |

| (1)   | Represents threshold, target and maximum payout levels under the Annual Incentive Plan or, as to Messrs. Lindemann and Herschmann, the Second Amended Bonus Plan, for 2011 performance. The actual amount of incentive bonus paid to each Company named executive officer with respect to 2011 performance is reported under the Non-Equity Incentive Plan Compensation column in the Summary Compensation Table. Additional information regarding the design of the Annual Incentive Plan and the Second Amended Bonus Plan is included in Compensation Discussion and Analysis beginning on page 12.  In certain limited and unique circumstances, with the exception of Messrs. Lindemann and Herschmann, whose maximum bonus is restricted in accordance with the Second Amended Bonus Plan, the Compensation Committee may make incentive bonus awards in excess of any estimated maximum payout amounts.  In 2011, the Compensation Committee did not make any incentive bonus awards in excess of the estimated maximum payout amounts. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (2)   | The Compensation Committee may exercise negative discretion to reduce such incentive bonus award to zero. |
|-----------------|-----------------------------------------------------------------------------------------------------------|

| (3)   | In 2011, Messrs. Lindemann and Herschmann participated in the Second Amended Bonus Plan.  The Committee set a financial performance goal for each of Messrs. Lindemann and Herschmann for the 2011 fiscal year and for the fiscal quarters ended June 30, 2011 and September 30, 2011, as permitted under the Second Amended Bonus Plan and in compliance with the performance-based compensation exemption under Internal Revenue Code Section 162(m). Cash bonuses payable under such plan to any eligible executive are limited to not more than 2.5% of annual Consolidated Net Income (as that term is defined in the Second Amended Bonus Plan), but in no event to exceed $6,000,000 in the aggregate for any eligible executive.  Quarterly payments payable to any eligible executive in the Second Amended Bonus Plan are limited to not more than 4% of quarterly Consolidated Net Income (as that term is defined in the Second Amended Bonus Plan).  For Messrs. Lindemann and Herschmann, the Committee set a Consolidated Net Income goal of $150 million for the 2011 fiscal year and a Consolidated Net Income goal of $30 million for each of the fiscal quarter ended June 30, 2011 and September 30, 2011.  The Committee determined that each of the Consolidated Net Income goal for the 2011 fiscal year and the Consolidated Net Income goal for the fiscal quarters ended June 30, 2011 and September 30, 2011 had been achieved.  The Committee also noted achievement of the strategic, operational and financial goals described in Compensation Discussion and Analysis—Second Amended Bonus Plan on page 19 above.  Thereafter, the Committee determined to exercise its “negative discretion” in setting the payouts under the Second Amended Bonus Plan to Messrs. Lindemann and Herschmann of annual incentive bonus awards to each of them of $1,550,560, as well as quarterly incentive bonus awards to each of them in the maximum permitted amounts of $2,318,880 for the fiscal quarter ended June 30, 2011 and $2,130,560 for the fiscal quarter ended September 30, 2011. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Cash Restricted Stock Units (settled in cash) |
|-----------------|-----------------------------------------------|

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|                | OPTION AWARDS                                       | STOCK AWARDS          |
|---------------------|-----------------------------------------------------|-----------------------|
| Name                | Number of Securities Underlying Unexercised Options | Option Exercise Price | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested | Market Value of Shares or Units of Stock That Have Not Vested |
| Exercisable         | Unexercisable                                       |
|                | (#)                                                 | (#)                   | ($) |   | (#) | ($) |
| (a)                 | (b)                                                 | (c)                   | (e) | (f) | (g) | (h) |
| George L. Lindemann |                                                | 441,469(1)            | 28.48 | 12/17/2017 |   |   |
|                | 500,000                                             |  -0-             | 12.55 | 12/15/2018 |   |   |
|                | 309,450160,839                                      | 154,726(2)321,678(3)  | 21.6424.80 | 12/15/201912/13/2020 |   58,022 (4)11,942 (5)71,293 (17) |    2,443,306          502,878          3,002,148 |
| Eric D. Herschmann  | 262,500                                             |  -0-             | 23.62 | 6/27/2015 |   |   |
|                | 100,000                                             |  -0-             | 23.63 | 12/30/2015 |   |   |
|                | 275,629                                             |  -0-             | 28.48 | 12/17/2017 |   |   |
|                | 202,934                                             |  -0-             | 12.55 | 12/15/2018 |   |   |
|                |  93,404                                        | 46,703(6)             | 21.64 | 12/15/2019 |   |   |
|                |  38,199                                        | 76,399(7)             | 24.80 | 12/13/2020 |   |   |
|                |                                                |                  |   |   | 39,915 (8) | 1,680,821 |
|                |                                                |                  |   |   | 68,972 (9)71,293 (17) | 2,904,4113,002,148 |
| Richard N. Marshall |  8,269                                         |  -0-             | 16.83 | 02/06/2014 |   |   |
|                |  683                                           |  -0-             | 24.06 | 07/26/2015 |   |   |
| 19,299 (10)         |  -0-                                           | 28.07                 | 12/28/2016 |   |   |
| 38,685 (10)         |  -0-                                           | 28.48                 | 12/17/2017 |   |   |
|                | 95,336 (10)                                         |  -0-             | 12.55 | 12/15/2018 |   |   |
|                | 31,134 (10)                                         | 15,569 (11)           | 21.64 | 12/15/2019 |   |   |
|                | 10,722 (10)                                         | 21,446 (16)           | 24.80 | 12/13/2020 |   |   |
|                |                                                |                  |   |   | 4,435 (12) | 186,758 |
|                |                                                |                  |   |   | 6,454 (13)11,289 (17) | 271,778475,380 |
| Robert O. Bond      |  16,538                                        |  -0-             | 16.83 | 02/06/2014 |   |   |
|                | 100,000                                             |  -0-             | 22.68 | 11/11/2015 |   |   |
|                | 23,753 (10)                                         |  -0-             | 28.07 | 12/28/2016 |   |   |
|                | 60,445 (10)                                         |  -0-             | 28.48 | 12/17/2017 |   |   |
|                | 95,336 (10)                                         |  -0-             | 12.55 | 12/15/2018 |   |   |
|                | 26,218 (10)                                         | 13,111 (14)           | 21.64 | 12/15/2019 |   |   |
|                | 10,722 (10)                                         | 21,446 (16)           | 24.80 | 12/13/2020 |   |   |
|                |                                                |                  |   |   | 3,736 (15) | 157,323 |
|                |                                                |                  |   |   | 6,454 (13)7,724 (17) | 271,778325,258 |
| Monica M. Gaudiosi  |  1,365                                         |  -0-             | 24.06 | 07/26/2015 |   |   |
|                |  25,000                                        |  -0-             | 22.68 | 11/11/2015 |   |   |
|                | 23,753 (10)                                         |  -0-             | 28.07 | 12/28/2016 |   |   |
|                | 38,685 (10)                                         |  -0-             | 28.48 | 12/17/2017 |   |   |
|                | 95,336 (10)                                         |  -0-             | 12.55 | 12/15/2018 |   |   |
|                | 31,134 (10)                                         | 15,569 (11)           | 21.64 | 12/15/2019 |   |   |
|                | 10,722 (10)                                         | 21,446 (16)           | 24.80 | 12/13/2020 |   |   |
|                |                                                |                  |   |   | 4,435 (12) | 186,758 |
|                |                                                |                  |   |   | 6,454 (13)7,724 (17) | 271,778325,258 |

----

| (1)   | These employee stock options awarded on December 17, 2007 vest in full on December 17, 2012. |
|-----------------|----------------------------------------------------------------------------------------------|

| (2)   | These employee stock options awarded on December 15, 2009 vest in full on December 15, 2012. |
|-----------------|---------------------------------------------------------------------------------------------------|

| (3)   | Of these employee stock options awarded on December 13, 2010, 160,839 will vest on December 13, 2012 and 160,839 will vest on December 13, 2013. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | The restrictions on these restricted shares awarded on December 17, 2007 expire in full on December 17, 2012. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------|

| (5)   | The restrictions on these restricted shares awarded on December 15, 2009 will expire on December 15, 2012. |
|-----------------|------------------------------------------------------------------------------------------------------------|

| (6)   | These employee stock options awarded on December 15, 2009 vest in full on December 15, 2012. |
|-----------------|----------------------------------------------------------------------------------------------|

| (7)   | Of these employee stock options awarded on December 13, 2010, 38,199 will vest on December 13, 2012 and 38,200 will vest on December 13, 2013. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------|

| (8)   | The restrictions on these restricted shares awarded on December 15, 2009 will expire on December 15, 2012. |
|-----------------|------------------------------------------------------------------------------------------------------------|

| (9)   | Of these restricted shares awarded on December 13, 2010, the restrictions on 34,486 restricted shares will expire on December 13, 2012 and the restrictions on 34,486 restricted shares will expire on December 13, 2013. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10)   | The SARs are fully vested and exercisable.  Upon exercise, the named executive officer will receive shares of common stock in an amount equal to the increase in the trading price at the time of exercise as compared to the grant date exercise price. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11)   | SARs will be settled in shares of common stock at an exercise price of $21.64 per share, which was equal to the closing price on the grant date. On December 15, 2012, the remaining 15,569 SARs will vest. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (12)   | The restricted units awarded on December 15, 2009 permit the recipient to receive, on predetermined dates upon expiration of applicable restrictions, cash in an amount equal to a specified number of shares of the Company's common stock valued at the closing price of the Company's common stock on such dates.  Restrictions on these 4,435 restricted units will expire on December 15, 2012. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13)   | The restricted units awarded on December 13, 2010 permit the recipient to receive, on predetermined dates upon expiration of applicable restrictions, cash in an amount equal to a specified number of shares of the Company's common stock valued at the closing price of the Company's common stock on such dates.  Restrictions on 3,227 restricted units will expire on December 13, 2012 and restrictions on 3,227 restricted units will expire on December 13, 2013. |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (14)   | SARs will be settled in shares of common stock at an exercise price of $21.64 per share, which was equal to the closing price on the grant date.  On December 15, 2012, the remaining 13,111 SARs will vest. |
|------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (15)   | The restricted units awarded on December 15, 2009 permit the recipient to receive, on predetermined dates upon expiration of applicable restrictions, cash in an amount equal to a specified number of shares of the Company's common stock valued at the closing price of the Company's common stock on such dates.  Restrictions on 3,736 restricted units will expire on December 15, 2012. |
|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (16)   | These SARs awarded on December 13, 2010 will be settled in shares of common stock at an exercise price of $24.80 per share, which was equal to the closing price on the grant date.  Restrictions on 10,723 restricted units will expire on December 13, 2012 and restrictions on 10,723 restricted units will expire on December 13, 2013. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (17)   | The cash restricted units awarded on November 6, 2011, permit the recipient to receive, on predetermined dates upon expiration of applicable restrictions, cash in an amount equal to a specified number of shares of the Company's common stock valued at the closing price of the Company's common stock on such dates.  Restrictions on the award will expire in equal annual installments on the first, second and third anniversaries of the grant date. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                                  | OPTION AWARDS              | STOCK AWARDS                         |
|---------------------------------------|----------------------------|--------------------------------------|
| Number of Shares Acquired on Exercise | Value Realized on Exercise | Number of Shares Acquired on Vesting | Value Realized on Vesting |
|                                  | (#)                        | ($)                                  | (#) | ($) |
| (a)                                   | (b)                        | (c)                                  | (d) | (e) |
| George L. Lindemann                   |                       |                                 |  11,941 (1) |  499,970 |
| Eric D. Herschmann                    |                       |                                 |  69,022 (1) |  2,889,951 |
|                                  |                       |                                 |  39,914 (1) 34,485 (1) |  1,671,199 1,440,438 |
| Richard N. Marshall                   |                       |                                 |  7,732 (2) |  323,739 |
|                                  |                       |                                 |  4,435 (2) 3,227 (2) |  185,693 134,792 |
| Robert O. Bond                        |                       |                                 |  7,732 (2) 3,734 (2)  3,227 (2) |  323,739 156,343 134,792 |
| Monica M. Gaudiosi                    |                       |                                 |  7,732 (2) |  323,739 |
|                                  |                       |                                 |  4,435 (2) |  185,693 |
|                                  |                       |                                 |  3,227 (2) |  134,792 |

| (1)   | This grant of restricted stock settled on the date of the expiration of the restrictions, resulting in the delivery of shares to the named executive officer. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | This grant of restricted units settled on the date of expiration of the restrictions, resulting in the delivery of cash in an amount equal to the specified number of shares of the Company’s common stock valued at the closing price of the Company’s common stock on the date the restrictions expired. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Name                  | Executive Contributions in2011 | Company Contributions in2011 | Aggregate Earnings or Losses in 2011 | Aggregate Withdrawals/Distributions | Aggregate Balance at December 31, 2011 |
|-----------------------|--------------------------------|------------------------------|--------------------------------------|-------------------------------------|----------------------------------------|
|                  | ($)                            | ($)                          | ($)                                  | ($)                                 | ($)                                    |
| (a)                   | (b)                            | (c)                          | (d)(1)                               | (e)                                 | (f)                                    |
| George L. Lindemann   |  -0-                      |  -0-                    | $2,706,821                           |  -0-                           | $6,170,901                             |
| Eric D. Herschmann(2) |  -0-                      |  -0-                    |  -0-                            |  -0-                           |  -0-                              |
| Richard N. Marshall   |  -0-                      |  -0-                    | $220,648                             |  -0-                           | $716,775                               |
| Robert O. Bond(2)     |  -0-                      |  -0-                    |  -0-                            |  -0-                           |  -0-                              |
| Monica M. Gaudiosi(2) |  -0-                      |  -0-                    |  -0-                            |  -0-                           |  -0-                              |

| (1) | Represents aggregate earnings or losses on the market value of the named executive officer’s holdings under the Company’s Supplemental Plan.  Any returns on the funds contributed pursuant to this plan (whether positive or negative) are solely due to market conditions.  Named executive officers who make deferral elections under the Supplemental Plan are not entitled to receive payments of cash interest from the Company. Moreover, deferrals may only be invested in Company stock or available mutual funds for which earnings are calculated on a market value basis.  The value of the deferrals is calculated and available |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | to the participating executives daily based on that day’s market price for Company stock or the publicly available mutual fund shares. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | The named executive officer either does not participate, or is not eligible to participate, in the Company’s Supplemental Plan. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

----

| George L. Lindemann                                    |
|--------------------------------------------------------|
| Executive Benefits and Paymentsas of December 31, 2011 | Voluntary Termination | Normal Retirement (55 years old and 20 years of service) | Other than for Cause; For Good Reason | For Cause Termination | Other than for Cause; for Good Reason (following Change of Control) | Change-of- ControlOnly | Death | Disability |
| Compensation:                                          |   |   |   |   |   |   |   |   |
| Severance(1)                                           | -- | -- | $14,809,999 | -- | $14,809,999 | -- | -- | -- |
| Short-term Incentive(2)                                | -- | -- | $1,550,560 | -- | $1,550,560 | -- | $1,550,560 | $1,550,560 |
| Long-term Incentives                                   |   |   |   |   |   |   |   |   |
| Restricted StockUnexpired and Accelerated(3)           | -- | -- | $5,948,332 | -- | $5,948,332 | $5,948,332 | $5,948,332 | $5,948,332 |
| Stock OptionsUnvested and Accelerated(3)               | -- | -- | $14,752,710 | -- | $14,752,710 | $14,752,710 | $14,752,710 | $14,752,710 |
| Restricted UnitsUnexpired and Accelerated              | -- | -- | -- | -- | -- | -- | -- | -- |
| SARsUnvested and Accelerated                           | -- | -- | -- | -- | -- | -- | -- | -- |
| Nonqualified Deferred Compensation Plan(4)             | $6,170,901 | $6,170,901 | $6,170,901 | $6,170,901 | $6,170,901 | -- | $6,170,901 | $6,170,901 |
| Benefits and Perquisites:                              |   |   |   |   |   |   |   |   |
| Retirement Benefits(5)                                 | -- |      $79,170 | $79,170 | -- | $79,170 | -- | -- | $79,170 |
| Post-employment Health Care                            | -- | -- | $85,827 | -- | $85,827 | -- | -- | -- |
| Life Insurance Proceeds                                | -- | -- | -- | -- | -- | -- |  $400,000 | -- |
| Disability Benefits                                    | -- | -- | -- | -- | -- | -- | -- | $180,000 |
| Accrued Vacation Pay                                   |      $134,615 | $134,615 | $134,615 | $134,615 | $134,615 | -- | $134,615 | $134,615 |
| Outplacement Services                                  | -- | -- | $20,000 | -- |  $20,000 | -- | -- | -- |
| Section 280G Tax Gross-up(6)                           | -- | -- | -- | -- | $6,759,551 | -- | -- | -- |
| Total:                                                 | $6,305,516 | $6,384,686 | $43,552,114 | $6,305,516 | $50,311,665 | $20,701,042 | $28,957,118 | $28,816,288 |

| (1) | Mr. Lindemann's employment agreement provides that if the Company terminates Mr. Lindemann's employment other than for cause or disability, or if Mr. Lindemann terminates employment for good reason, the Company must provide Mr. Lindemann, among other things, a lump-sum cash payment equal to the result of multiplying (i) the sum of (A) his annual base salary, plus (B) the higher of (a) his target annual bonus for the year in which the date of termination occurs or (b) his average annual bonus during the last three completed fiscal years of the Company immediately preceding the date of termination by (ii) three.  For purposes of this illustration, the average of Mr. Lindemann’s 2011, 2010 and 2009 fiscal year bonuses were used in the above calculation. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents a lump-sum cash payment equal to his annual bonus for the fiscal year ended December 31, 2011, subject to the discretion of the Compensation Committee and requirements of his employment agreement. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | These amounts assume the closing price of the Company's stock as of December 30, 2011, which was $42.11 per share. |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (4) | Mr. Lindemann has made an irrevocable election to receive a single, lump-sum payment of his holdings under the Company’s nonqualified deferred compensation plan, payable no later than January 31 of the year following his termination.  Mr. Lindemann is already fully vested in this amount. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Retiree Medical Plan benefit reflects $3,770 per year of service (21 years).  Spouse is eligible for an equal amount if covered under the medical plan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6) | The calculation of the Section 280G gross-up amount in the above table is based upon a Section 280G excise tax rate of 20%, a 35% federal income tax rate, a 1.45% Medicare tax rate and certain assumptions with respect to his historical state tax obligations. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Eric D. Herschmann                                     |
|--------------------------------------------------------|
| Executive Benefits and Paymentsas of December 31, 2011 | Voluntary Termination(4) | Other than for Cause; For Good Reason | For Cause Termination | Other than for Cause; for Good Reason (following Change of Control) | Change-of-Control Only | Death | Disability |
| Compensation:                                          |   |   |   |   |   |   |   |
| Severance(1)                                           | -- | $14,559,999 | -- | $14,559,999 | -- | -- | -- |
| Short-term Incentive(2)                                | -- | $1,550,560 | -- | $1,550,560 | -- | $1,550,560 | $1,550,560 |
| Long-term Incentives                                   |   |   |   |   |   |   |   |
| Restricted StockUnexpired and Accelerated(3)           | -- | $7,587,380 | -- | $7,587,380 | $7,587,380 | $7,587,380 | $7,587,380 |
| Stock OptionsUnvested and Accelerated(3)               | -- | $2,278,477 | -- | $2,278,477 | $2,278,477 | $2,278,477 | $2,278,477 |
| Restricted UnitsUnexpired and Accelerated              | -- | -- | -- | -- | -- | -- | -- |
| SARsUnvested and Accelerated                           | -- | -- | -- | -- | -- | -- | -- |
| Benefits and Perquisites:                              |   |   |   |   |   |   |   |
| Post-employment Health Care                            |   |  $65,775 | -- | $65,775 | -- | -- | -- |
| Life Insurance Proceeds                                | -- | -- | -- | -- | -- | $1,000,000 | -- |
| Disability Benefits                                    | -- | -- | -- | -- | -- | -- | $180,000 |
| Accrued Vacation Pay                                   | $127,885 | $127,885 | $127,885 | $127,885 | -- | $127,885 | $127,885 |
| Outplacement Services                                  | -- |  $20,000 | -- | $20,000 | -- | -- | -- |
| Section 280G Tax Gross-up(5)                           | -- | -- | -- | $6,413,936 |   | -- | -- |
| Total:                                                 | $127,885 | $26,190,076 | $127,885 | $32,604,012 | $9,865,857 | $12,544,302 | $11,724,302 |

| (1) | Mr. Herschmann's employment agreement provides that if the Company terminates Mr. Herschmann's employment other than for cause or disability, or if Mr. Herschmann terminates employment for good reason, the Company must provide Mr. Herschmann, among other things, a lump-sum cash payment equal to the result of multiplying (i) the sum of (A) his annual base salary, plus (B) the higher of (a) his target annual bonus for the year in which the date of termination occurs or (b) his average annual bonus during the last three completed fiscal years of the Company immediately preceding the date of termination by (ii) three.  For purposes of this illustration, the average of Mr. Herschmann’s 2011, 2010 and 2009 fiscal year bonuses were used in the above calculation. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents a lump-sum cash payment equal to his annual bonus for the fiscal year ended December 31, 2011, subject to the discretion of the Compensation Committee and requirements of his employment agreement . |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | These amounts assume the closing price of the Company's stock as of December 30, 2011, which was $42.11 per share. |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (4) | Ineligible for retirement benefits due to age and years of service. |
|-----|---------------------------------------------------------------------|

| (5) | The calculation of the Section 280G gross-up amount in the above table is based upon a Section 280G excise tax rate of 20%, a 35% federal income tax rate and a 1.45% Medicare tax rate. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Richard N. Marshall                                    |                    |                                  |                  |                                                                |                  |       |       |
|--------------------------------------------------------|-------------------------|---------------------------------------|-----------------------|---------------------------------------------------------------------|-----------------------|------------|------------|
| Executive Benefits and Paymentsas of December 31, 2011 | VoluntaryTermination(5) | Other than for Cause; For Good Reason | For Cause Termination | Other than for Cause; for Good Reason (following Change of Control) | Change-of-ControlOnly | Death      | Disability |
| Compensation:                                          |                    |                                  |                  |                                                                |                  |       |       |
| Severance(1)                                           | --                      | $1,460,040                            | --                    | $1,460,040                                                          | --                    | --         | --         |
| Short-term Incentive(2)                                | --                      | $243,340                              | --                    | $243,340                                                            | --                    | $243,340   | $243,340   |
| Long-term Incentives                                   |                    |                                  |                  |                                                                |                  |       |       |
| Restricted StockUnexpired and Accelerated(3)           | --                      | --                                    | --                    | --                                                                  | --                    | --         | --         |
| Stock OptionsUnvested and Accelerated                  | --                      | --                                    | --                    | --                                                                  | --                    | --         | --         |
| Restricted UnitsUnvested and Accelerated(3)            | --                      | --                                    | --                    | $933,916                                                            | $933,916              | --         | --         |
| SARsUnexpired and Accelerated(3)                       | --                      | --                                    | --                    | $689,928                                                            | $689,928              | --         | --         |
| Nonqualified Deferred Compensation Plan(4)             |  $716,775          | $716,775                              | $716,775              | $716,775                                                            | --                    | $716,775   | $716,775   |
| Benefits and Perquisites:                              |                    |                                  |                  |                                                                |                  |       |       |
| Post-employment Health Care                            |                    | $26,731                               | --                    |  $26,731                                                       | --                    | --         | --         |
| Life Insurance Proceeds                                | --                      | --                                    | --                    | --                                                                  | --                    | $946,000   | --         |
| Disability Benefits                                    | --                      | --                                    | --                    | --                                                                  | --                    | --         | $180,000   |
| Accrued Vacation Pay                                   |  $29,013           | $29,013                               | $29,013               |  $29,013                                                       | --                    | $29,013    | $29,013    |
| Outplacement Services                                  | --                      | $20,000                               | --                    |  $20,000                                                       | --                    | --         | --         |
| Section 280G Tax Gross-up(6)                           | --                      | --                                    | --                    |  $0                                                            | --                    | --         | --         |
| Total:                                                 | $745,788                | $2,495,899                            | $745,788              | $4,119,743                                                          | $1,623,844            | $1,935,128 | $1,169,128 |

| (1) | Mr. Marshall's employment agreement provides that if the Company terminates Mr. Marshall's employment other than for cause or disability, or if Mr. Marshall terminates employment for good reason, the Company must provide Mr. Marshall, among other things, a lump-sum cash payment equal to the result of multiplying (i) the sum of (A) his annual base salary, plus (B) the higher of (a) his target annual bonus for the year in which the date of termination occurs or (b) his average annual bonus during the last three completed fiscal years of the Company immediately preceding the date of termination by (ii) two. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents a lump-sum cash payment equal to his target annual bonus for the fiscal year ended December 31, 2011, subject to the discretion of the Compensation Committee and requirements of his employment agreement. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | These amounts assume the closing price of the Company's stock as of December 30, 2011, which was $42.11 per share. |
|-----|--------------------------------------------------------------------------------------------------------------------|

| (4) | Mr. Marshall has made an irrevocable election to receive payments of his holdings under the Company’s Supplemental Plan over a five-year period, the first installment of which shall be payable no later than January 31 of the year following his termination.  Mr. Marshall is already fully vested in this amount. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5) | Ineligible for retirement benefits due to age. |
|-----|------------------------------------------------|

| (6) | The calculation of the Section 280G gross-up amount in the above table is based upon a Section 280G excise tax rate of 20%, a 35% federal income tax rate and a 1.45% Medicare tax rate. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Robert O. Bond                                         |
|--------------------------------------------------------|
| Executive Benefits and Paymentsas of December 31, 2011 | Voluntary Termination(4) | Other than for Cause; For Good Reason | For Cause Termination | Other than for Cause; for Good Reason (following Change of Control) | Change-of-ControlOnly | Death | Disability |
| Compensation:                                          |   |   |   |   |   |   |   |
| Severance(1)                                           | -- | $1,727,580 | -- | $1,727,580 | -- | -- | -- |
| Short-term Incentive(2)                                | -- | $287,930 | -- | $287,930 | -- | $287,930 | $287,930 |
| Long-term Incentives                                   |   |   |   |   |   |   |   |
| Restricted StockUnexpired and Accelerated              | -- | -- | -- | -- | -- | -- | -- |
| Stock OptionsUnvested and Accelerated                  | -- | -- | -- | -- | -- | -- | -- |
| Restricted UnitsUnexpired and Accelerated(3)           | -- | -- | -- | $754,359 | $754,359 | -- | -- |
| SARsUnvested and Accelerated(3)                        | -- | -- | -- | $639,612 | $639,612 | -- | -- |
| Benefits and Perquisites:                              |   |   |   |   |   |   |   |
| Post-employment Health Care                            |   | $92,379 | -- |  $92,379 | -- | -- | -- |
| Life Insurance Proceeds                                | -- | -- | -- | -- | -- | $1,000,000 | -- |
| Disability Benefits                                    | -- | -- | -- | -- | -- | -- | $180,000 |
| Accrued Vacation Pay                                   |  $14,397 | $14,397 | $14,397 |  $14,397 | -- | $14,397 | $14,397 |
| Outplacement Services                                  | -- | $20,000 | -- |  $20,000 | -- | -- | -- |
| Section 280G Tax Gross-up                              | -- | -- | -- | $0 | -- | -- | -- |
| Total:                                                 | $14,397 | $2,142,286 | $14,397 | $3,536,257 | $1,393,971 | $1,302,327 | $482,327 |

| (1) | Mr. Bond's employment agreement provides that if the Company terminates Mr. Bond's employment other than for cause or disability, or if Mr. Bond terminates employment for good reason, the Company must provide Mr. Bond, among other things, a lump-sum cash payment equal to the result of multiplying (i) the sum of (A) his annual base salary, plus (B) the higher of (a) his target annual bonus for the year in which the date of termination occurs or (b) his average annual bonus during the last three completed fiscal years of the Company immediately preceding the date of termination by (ii) two. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents a lump-sum cash payment equal to his target annual bonus for the fiscal year ended December 31, 2011, subject to the discretion of the Compensation Committee and requirements of his employment agreement. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | These amounts assume the closing price of the Company's stock as of December 30, 2011, which was $42.11 per share |
|-----|-------------------------------------------------------------------------------------------------------------------|

| (4) | Ineligible for retirement benefits due to age. |
|-----|------------------------------------------------|

----

| Monica M. Gaudiosi                                     |                     |                                  |                  |                                                                |                  |       |       |
|--------------------------------------------------------|--------------------------|---------------------------------------|-----------------------|---------------------------------------------------------------------|-----------------------|------------|------------|
| Executive Benefits and Paymentsas of December 31, 2011 | Voluntary Termination(4) | Other than for Cause; For Good Reason | For Cause Termination | Other than for Cause; for Good Reason (following Change of Control) | Change-of-ControlOnly | Death      | Disability |
| Compensation:                                          |                     |                                  |                  |                                                                |                  |       |       |
| Severance(1)                                           | --                       | $1,460,040                            | --                    | $1,460,040                                                          | --                    | --         | --         |
| Short-term Incentive(2)                                | --                       | $243,340                              | --                    | $243,340                                                            | --                    | $243,340   | $243,340   |
| Long-term Incentives                                   |                     |                                  |                  |                                                                |                  |       |       |
| Restricted StockUnexpired and Accelerated(3)           | --                       | --                                    | --                    | --                                                                  | --                    | --         | --         |
| Stock OptionsUnvested and Accelerated                  | --                       | --                                    | --                    | --                                                                  | --                    | --         | --         |
| Restricted UnitsUnexpired and Accelerated(3)           | --                       | --                                    | --                    | $783,793                                                            | $783,793              | --         | --         |
| SARsUnvested and Accelerated(3)                        | --                       | --                                    | --                    | $689,928                                                            | $689,928              | --         | --         |
| Benefits and Perquisites:                              |                     |                                  |                  |                                                                |                  |       |       |
| Post-employment Health Care                            | --                       | $22,816                               | --                    |  $22,816                                                       | --                    | --         | --         |
| Life Insurance Proceeds                                | --                       | --                                    | --                    | --                                                                  | --                    | $946,000   | --         |
| Disability Benefits                                    | --                       | --                                    | --                    | --                                                                  | --                    | --         | $180,000   |
| Accrued Vacation Pay                                   |  $18,718            | $18,718                               | $18,718               |  $18,718                                                       | --                    | $18,718    | $18,718    |
| Outplacement Services                                  | --                       | $20,000                               | --                    |  $20,000                                                       | --                    | --         | --         |
| Section 280G Tax Gross-up                              | --                       | --                                    | --                    |  $0                                                            | --                    | --         | --         |
| Total:                                                 | $18,718                  | $1,764,914                            | $18,718               | $3,238,635                                                          | $1,473,721            | $1,208,058 | $442,058   |

| (1) | Ms. Gaudiosi's employment agreement provides that if the Company terminates Ms. Gaudiosi's employment other than for cause or disability, or if Ms. Gaudiosi terminates employment for good reason, the Company must provide Ms. Gaudiosi, among other things, a lump-sum cash payment equal to the result of multiplying (i) the sum of (A) her annual base salary, plus (B) the higher of (a) her target annual bonus for the year in which the date of termination occurs or (b) her average annual bonus during the last three completed fiscal years of the Company immediately preceding the date of termination by (ii) two. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Represents a lump-sum cash payment equal to her target annual bonus for the fiscal year ended December 31, 2011, subject to the discretion of the Compensation Committee and requirements of her employment agreement . |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | These amounts assume the closing price of the Company's stock as of December 30, 2011, which was $42.11 per share |
|-----|-------------------------------------------------------------------------------------------------------------------|

| (4) | Ineligible for retirement benefits due to age. |
|-----|------------------------------------------------|

|   | • | the willful and continued failure of the named executive officer to perform substantially his or her duties with the Company (other than any such failure resulting from the named executive officer’s incapacity due to physical or mental illness or any such failure subsequent to the named executive officer being delivered a notice of termination without cause by the Company or delivering a notice of termination for good reason to the Company) after a written demand for substantial performance is delivered to the |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | named executive officer by or on behalf of the Board which specifically identifies the manner in which the Board believes that the named executive officer has not substantially performed his or her duties; |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the willful engaging by the named executive officer in illegal conduct or gross misconduct which is demonstrably and materially injurious to the Company or its affiliates; or |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | any material change in the duties, responsibilities or authority (including reporting responsibilities) of the named executive officer that is inconsistent in any material and adverse respect with the named executive officer’s position(s), duties, responsibilities or status with the Company on August 28, 2008 or as may be increased from time to time in connection with promotions (including any material and adverse diminution of such duties or responsibilities); |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | any material and adverse change in the named executive officer’s titles or offices (including, if applicable, membership on the Board) with the Company; |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | a more than 10% reduction by the Company in the named executive officer’s annual bonus opportunity (including any material and adverse change in the formula for such bonus); |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | any requirement of the Company that the named executive officer (A) be based anywhere more than 50 miles from the office where the named executive officer is located on August 28, 2008, or (B) travel on Company business to an extent substantially greater than the travel obligations of the named executive officer on August 28, 2008; |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the failure of the Company to obtain the assumption of the Company’s obligations under the employment agreement from any successor as contemplated in the employment agreement; or |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | • | a change in the majority of the Board serving as directors as of August 28, 2008 (the “Incumbent Board”), provided, however, that any individual becoming a new board member subsequent to August 28, 2008 whose election or nomination for election was approved by a vote of at least two-thirds of the Incumbent Board will be considered as though such individual were a member of the Incumbent Board; |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | • | with certain exceptions, the acquisition by any person of beneficial ownership of more than 20% of the combined voting power of the Company’s then outstanding securities entitled to vote generally in the election of  directors (the “Company Voting Securities”); |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | the consummation of a merger, consolidation, statutory share exchange, reorganization, sale of all or substantially all of the Company’s assets or similar form of corporate transaction that requires the approval of the Company’s stockholders, whether for such transaction or the issuance of securities in the transaction (a “Business Combination”), where (i) less than a majority of the total voting power of (x) the corporation resulting from the Business Combination (the “Surviving Corporation”), or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of at least 95% of the voting securities eligible to elect directors of the Surviving Corporation (the “Parent Corporation”), is represented by Company Voting Securities that were outstanding immediately prior to the Business Combination, and such voting power among the holders is in substantially the same proportion as the voting power of such Company Voting Securities among those holders immediately prior to the Business Combination; (ii) with certain exceptions, a person is or becomes the beneficial owner, directly or indirectly, of 20% or more of the total voting power of the outstanding securities eligible to elect directors of the Parent Corporation (or Surviving Corporation if there is no Parent Corporation); or (iii) less than a majority of the members of the board of directors of the Parent Corporation (or Surviving Corporation if there is no Parent Corporation) following the consummation of the Business Combination were Incumbent Directors at the time of the Board’s approval of the execution of the initial agreement providing for the Business Combination; or |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | associating (including as a director, officer, employee, partner, consultant, agent or advisor) with a “competitive enterprise” and in connection with the named executive officer’s association, engaging, or directly or indirectly managing or supervising personnel engaged in any activity that (A) is substantially related to any activity that the named executive officer was engaged in with the Company or its affiliates during the 12 months prior to his or her termination, (B) is substantially related to any activity for which the named executive officer had direct or indirect managerial or supervisory responsibility with the Company or its affiliates during the 12 months prior to his or her termination date, or (C) calls for the application of specialized knowledge or skills substantially related to those used by the named executive officer in his or her activities with the Company or its affiliates during the 12 months prior to his or her termination date. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | Any “person” (defined as such term is used in Sections 13(d)(3) and 14(d)(2) of the Securities Exchange Act), or more than one person acting as a group (as defined in the third bullet below), (i) becomes the beneficial owner, directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company Voting Securities, or (ii) notwithstanding the occurrence of a Change in Control pursuant to clause (i), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of securities of the Company representing 35% or more of the combined voting power of the Company Voting Securities; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | There is a change in the composition of the Board over a period of 12 consecutive months or less such that a majority of the members of the Board (rounded up to the nearest whole number) cease to be individuals who either (i) have been members of the Board of Directors continuously since the beginning of such period or (ii) have been elected or nominated for election as members of the Board of Directors during such period by at least two-thirds (2/3) of the members of the Board of Directors described in clause (i) who were still in office at the time such election or nomination was approved by the Board of Directors; or  |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | The sale of all or substantially all of the assets of the Company or any merger, consolidation, issuance of securities or purchase of assets, the results of which merger, consolidation, issuance of securities or purchase is the occurrence of any event described in the first two bullet points above.  Notwithstanding anything to the contrary contained herein, no Change in Control shall be considered to occur where there is a transfer of all or substantially all of the assets of the Company to (i) a shareholder of the Company  (immediately before the asset transfer) in exchange for or with respect to its stock; (ii) an entity, 50% or more of the total value or voting power of which is owned, directly or indirectly, by the Company; (iii) a person, or more than one person acting as a group, that owns, directly or indirectly,  50% or more of the total value or voting power of all the outstanding stock of the Company; or (iv) an entity, at least 50% of the total value or voting power of which is owned, directly or indirectly, by a person described in clause (iii). |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | For purposes of this definition of Change in Control, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of assets, or similar business transaction with the Company. It is intended that the Change in Control events described in this definition meet the requirements for a “Change in Control Event” as described in Notice 2005-1, as such requirements may be modified from time to time by further IRS guidance under Section 409A, and the term “Change in Control” will be interpreted and applied for all purposes of the Stock and Incentive Plan in a manner consistent with such intent. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   The Company’s 401(k) Plan does not define the term “Change of Control.”  For purposes herein, the Company has assumed that upon a Change of Control the Company would elect to terminate the 401(k) Plan.   In the event of the termination of the 401(k) Plan, all unvested amounts would immediately become vested and nonforfeitable.  The impact of such a termination is reflected in the table above. |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ·   | cash compensation, consisting of an annual retainer, special committee bonuses and committee chairman fees, as applicable; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | equity compensation, consisting of a restricted stock award and an award of stock options; and |
|--------------------|------------------------------------------------------------------------------------------------|

| ·   | Company-provided healthcare. |
|--------------------|------------------------------|

----

| Name                    | Fees Earned or Paid in Cash | Stock Awards | Option Awards | Non-Equity Incentive Plan Compensation | Change in Pension Value and Nonqualified Deferred Compensation Earnings | All Other Compensation | Total   |
|-------------------------|-----------------------------|--------------|---------------|----------------------------------------|-------------------------------------------------------------------------|------------------------|---------|
|                    | ($)                         | ($)          | ($)           | ($)                                    | ($)                                                                     | ($)                    | ($)     |
| (a)                     | (b) (1)                     | (c) (2)      | (d)           | (e)                                    | (f)                                                                     | (g)                    | (j)     |
| David Brodsky           | 150,000 (6)                 | 28,490 (3)   | 78,432 (4)    | _                                      | _                                                                       | 11,787 (5)        | 268,709 |
| Frank W. Denius         | 200,000 (7)                 | 28,490 (3)   | 78,432 (4)    | _                                      | _                                                                       | 11,787 (5)        | 318,709 |
| Kurt A. Gitter, M.D.    | 150,000 (8)                 | 28,490 (3)   | 78,432 (4)    | _                                      | _                                                                       | 15,068 (5)        | 271,990 |
| Herbert H. Jacobi       | 150,000 (9)                 | 28,490 (3)   | 78,432 (4)    | _                                      | _                                                                       | 11,787 (5)        | 268,709 |
| Thomas N. McCarter, III | 200,000 (10)                | 28,490 (3)   | 78,432 (4)    | _                                      | _                                                                       | _                      | 306,922 |
| George Rountree, III    | 200,000 (11)                | 28,490 (3)   | 78,432 (4)    | _                                      | _                                                                       | 11,666 (5)        | 318,588 |
| Allan D. Scherer        | 140,000 (12)                | 28,490 (3)   | 78,432 (4)    | _                                      | _                                                                       | 11,214 (5)        | 258,136 |

|  (1)   | The non-management director annual retainer was $90,000, or $22,500 per quarter. |
|-----------------------|----------------------------------------------------------------------------------|

| (2)   | For a description of the assumptions made in calculating the grant date fair value of the restricted stock in accordance with FASB Accounting Standards Codification Topic 718, Compensation-Stock Compensation, see Note 13 to the Company’s footnotes to its audited financial statements included in its Form 10-K for the year ended December 31, 2011. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | On May 4, 2011, each non-management director received an award of 1,000 shares of restricted stock.  The restrictions associated with the 1,000 share grant expired on January 2, 2011. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | On May 4, 2011, each non-management director received an award of 10,753 stock options at an exercise price of $28.49 per share, which was equal to the closing price on the grant date.  The stock options awarded vested in full on January 2, 2011. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | Certain non-management directors received health care benefits from the Company.  The amount shown is the derived premium cost to the Company for health care benefits the director received, which vary depending on the plan and coverage elected.  Each director receiving medical coverage made a co-payment to the Company in the amount of approximately 22% of the cost of the coverage. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (6)   | Mr. Brodsky served as Chairman of the Audit Committee, for which he received the $10,000 annual chairman’s fees.  Mr. Brodsky deferred 50% or $75,000 of his aggregate compensation to the Directors’ Plan under which he was awarded stock in lieu of the cash payment.  Also, in consideration of his service on the Southern Union Special Committee, Mr. Brodsky received a lump sum cash payment of $50,000. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (7)   | Mr. Denius served as Chairman of the Finance Committee, for which he received the $10,000 annual chairman’s fee.  Mr. Denius deferred all of his director compensation less the applicable deductions for the director’s contribution for Company-provided health insurance (in the amount of 20% of the cost of coverage) described in the column “Fees Earned or Paid in Cash” to the Directors’ Plan under which he was awarded stock in lieu of the cash payment.  Also, in consideration of his service on the Southern Union Special Committee, Mr. Denius received a lump sum cash payment of $100,000. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| (8)   | Dr. Gitter served as Chairman of the Investment Committee, for which he received the $10,000 annual chairman’s fee.  Dr. Gitter deferred all of his director compensation less the applicable deductions for the director’s contribution for Company-provided health insurance (in the amount of 20% of the cost of coverage) described in the column “Fees Earned or Paid in Cash” to the Directors’ Plan under which he was awarded stock in lieu of the cash payment.  Also, in consideration of his service on the Southern Union Special Committee, Dr. Gitter received a lump sum cash payment of $50,000. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (9)   | Mr. Jacobi served as the Chairman of the Corporate Governance Committee, for which he received the $10,000 annual chairman’s fee.  Mr. Jacobi deferred all of his director compensation less the applicable deductions for the director’s contribution for Company-provided health insurance (in the amount of 20% of the cost of coverage) described in the column “Fees Earned or Paid in Cash” to the Directors’ Plan under which he was awarded stock in lieu of the cash payment.  Also, in consideration of his service on the Southern Union Special Committee, Mr. Jacobi received a lump sum cash payment of $50,000. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (10)   | Mr. McCarter served as the Company’s Lead Independent Director, for which he received the $10,000 annual chairman’s fee.  Also, in consideration of his service on the Southern Union Special Committee, Mr. McCarter received a lump sum cash payment of $100,000. |
|------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        (11) | During 2011, Mr. Rountree served as Chairman of the Compensation Committee, for which he received the $10,000 annual chairman’s fee. Also, in consideration of his service on the Southern Union Special Committee, Mr. Rountree received a lump sum cash payment of $100,000. |
|-------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        (12) | In consideration of his service on the Southern Union Special Committee, Mr. Scherer received a lump sum cash payment of $50,000. |
|-------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|

----

|   ITEM 12.  |  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
|-----------------------|------------------------------------------------------------------------------------------------------|

|                                                        |         |                                                                                                 |       |                 |   |   |                     |          |
|-------------------------------------------------------------|--------------|------------------------------------------------------------------------------------------------------|------------|----------------------|--------|--------|--------------------------|---------------|
| Name of Beneficial Owner                                    |    | Amount and Nature of BeneficialOwnership; Number of SharesBeneficially Owned (1) |       | Percentof Class |
| George L. Lindemann                                         |    |                                                                                                 | 8,740,670  | (2)                  |   |   | 7.0                      | %        |
| Robert O. Bond                                              |    |                                                                                                 | 229,529    | (3)                  |   |   |                     |  *  |
| David Brodsky                                               |    |                                                                                                 | 121,135    | (4)                  |   |   |                     |  *  |
| Frank W. Denius                                             |    |                                                                                                 | 206,010    | (5)                  |   |   |                     |  *  |
| Monica M. Gaudiosi                                          |    |                                                                                                 | 149,380    | (6)                  |   |   |      |  *  |
| Kurt A. Gitter, M.D.                                        |    |                                                                                                 | 318,531    | (7)                  |   |   |                     |  *  |
| Eric D. Herschmann                                          |    |                                                                                                 | 1,578,082  | (8)                  |   |   | 1.5                      | %        |
| Herbert H. Jacobi                                           |    |                                                                                                 | 101,330    | (9)                  |   |   |                     |  *  |
| Richard N. Marshall                                         |    |                                                                                                 | 131,139    | (10)                 |   |   |                     |  *  |
| Thomas N. McCarter, III                                     |    |                                                                                                 | 50,386     | (11)                 |   |   |                     |  *  |
| George Rountree, III                                        |    |                                                                                                 | 152,873    | (12)                 |   |   |                     |  *  |
| Allan D. Scherer                                            |    |                                                                                                 | 53,825     | (13)                 |   |   |                     |  *  |
| All directors and executive officers as a group(15 persons) |    |                                                                                                 | 11,995,725 | (14)                 |   |   | 9.6                      | %        |
| BlackRock, Inc.40 East 52nd StreetNew York, NY 10022        |    |                                                                                                 | 7,398,427  | (15)                 |   |   | 5.9                      | %   |

|  *Less than 1%      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|--------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)                      | Includes options to acquire shares of common stock that are exercisable or become exercisable within 60 days of December 31, 2011. Information regarding shares owned by each director or named executive officer in the 401(k) Plan, Directors' Plan and Southern Union Company Direct Stock Purchase Plan is as of December 31, 2011 (unless otherwise noted). Not included in the chart above are SARs that do not vest within 60 days of December 31, 2011.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (2)                      | Includes 4,305,351 shares owned directly; 3,289,220 shares owned by Mr. Lindemann's wife, Dr. F. B. Lindemann; 145,940 shares held through the Southern Union Supplemental Plan for Mr. Lindemann; 29,870 shares held by the 401(k) Plan for Mr. Lindemann; and 970,289 shares Mr. Lindemann is entitled to purchase upon the exercise of stock options exercisable pursuant to the 1992 Plan. Mr. Lindemann is party to a Loan Agreement with Credit Suisse pursuant to which his directly held shares were pledged as collateral. Under the terms of the Loan Agreement, the shares were held in a segregated account and, absent an event of default thereunder, the shares could not be pledged, re-pledged, hypothecated, re-hypothecated, sold, lent, or otherwise transferred or used by Credit Suisse. The shares held by Dr. F. B. Lindemann were pledged as collateral in certificated form pursuant to a margin account agreement with Deutsche Bank. Mr. Lindemann disclaims beneficial ownership of any shares owned by any other member of his family, including shares beneficially held by Mr. Lindemann's wife, Dr. F. B. Lindemann, or his adult children. |
|      | Not included in the chart above are shares held by the following adult members of Mr. Lindemann's family: 3,365,500 shares owned by George L. Lindemann, Jr., 2,000,000 (approximate; +/- not more than 100,000) shares owned by Adam M. Lindemann and 3,369,667 shares owned by Sloan Lindemann Barnett. Mr. Lindemann disclaims beneficial ownership over such shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (3)                      | Includes 1,431 shares pursuant to the 401(k) Plan, 116,538 options that are currently exercisable and 111,560 shares receiva7ble upon exercise of SARs currently in-the-money (using the closing price of Southern Union stock of $42.11 as of December 30, 2011).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (4)                      | Includes 30,079 shares pursuant to the Directors' Plan, 25,755 shares Mr. Brodsky is entitled to purchase upon the exercise of stock options pursuant to the Stock and Incentive Plan and 4,514 shares owned by the David L. Brodsky Retirement Plan, by Van Liew Capital and Trust Company, as trustee. Mr. Brodsky disclaims beneficial ownership of the retirement plan shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| (5)                      | Includes 1,217 shares owned by Mr. Denius' wife; 68,938 shares owned by The Effie and Wofford Cain Foundation (the "Foundation"), of which Mr. Denius is a director; 25,755 shares Mr. Denius is entitled to purchase upon the exercise of stock options pursuant to the Stock and Incentive Plan and 55,621 shares pursuant to the Director's Deferred Compensation Plan. Mr. Denius disclaims beneficial ownership of the shares held by the Foundation because he does not have a pecuniary interest in or control of the Foundation's assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| (6)                      | Includes 4,609 shares pursuant to the 401(k) Plan, 26,365 options that are currently exercisable and 106,906 shares receivable upon exercise of SARs currently in-the-money (using the closing price of Southern Union stock of $42.11 as of December 30,  2011).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| (7)                      | Includes 56,520 shares pursuant to the Directors' Plan, 25,755 shares Dr. Gitter is entitled to purchase upon the exercise of stock options pursuant to the Stock and Incentive Plan and 6,728 shares owned by Dr. Gitter's daughter. Dr. Gitter disclaims beneficial ownership of the shares owned by his daughter.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| (8)                      | Includes 1,062,666 options that are currently exercisable and 18,200 shares held by Mr. Herschmann's children for which Mr. Herschmann disclaims beneficial ownership.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
| (9)                      | Includes 34,632 shares pursuant to the Director's Deferred Compensation Plan and 25,755 shares Mr. Jacobi is entitled to purchase upon the exercise of stock options exercisable pursuant to the Stock and Incentive Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| (10)                     | Includes 2,950 shares pursuant to the 401(k) Plan, 1,037 shares owned jointly with his spouse, 11,725 shares pursuant to the Supplemental Plan, 8,952 options that are currently exercisable and 105,425 shares receivable upon exercise of SARs currently in-the-money (using the closing price of Southern Union stock of $42.11 as of  December 30,  2011).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| (11)                     | Includes 25,755 shares Mr. McCarter is entitled to purchase upon the exercise of stock options pursuant to the Stock and Incentive Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (12)                     | Includes 44,630 shares pursuant to the Directors' Plan, 25,755 shares Mr. Rountree is entitled to purchase upon the exercise of stock options pursuant to the Stock and Incentive Plan and  6,841 shares owned by Mr. Rountree's wife.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| (13)                     | Includes 3,582 shares owned by Mr. Scherer's wife and 25,755 shares Mr. Scherer is entitled to purchase upon the exercise of stock options pursuant to the Stock and Incentive Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
| (14)                     | Excludes options to acquire shares of common stock that are not exercisable and do not become exercisable within 60 days of December 30, 2011 granted pursuant to plans that preceded the Stock and Incentive Plan. Includes vested shares held through certain Southern Union benefit and deferred savings plans for which certain executive officers and directors may be deemed beneficial owners, but excludes shares that have not vested under the terms of such plans.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (15)                     | Reflects shares held by BlackRock, Inc. and related entities reported to the SEC in a Schedule 13G/A on February 8, 2012. Southern Union is unaware of any further rights or options to obtain shares held by BlackRock, Inc. and/or any other related entities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

| ·   | the transaction was fully disclosed to the Board prior to the date on which the parties propose to enter into such transaction; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

| ·   | the transaction is in the best interests of the Company; and  |
|--------------------|--------------------------------------------------------------------|

| o   | the transaction is not material to the Company or to the director (or his immediate family members or affiliates, as applicable); |
|---------------|-----------------------------------------------------------------------------------------------------------------------------------|

| o   | the transaction would not compromise the director’s independence, either under the federal securities laws or the listing standards established by the NYSE; and |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | the amount of the transaction is less than $120,000 and would not otherwise be required to be disclosed in the Company’s proxy statement or other filing mandated by the SEC. |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | any actual or apparent conflict between their own personal interests and the interests of the Company; |
|---------------|--------------------------------------------------------------------------------------------------------|

| o   | taking actions or having personal interests that may interfere with the effective performance of work for the Company; |
|---------------|------------------------------------------------------------------------------------------------------------------------|

| o   | taking, for their own benefit, opportunities discovered through their use of corporate assets or information; |
|---------------|---------------------------------------------------------------------------------------------------------------|

| o   | using corporate property, information or position for personal gain; and |
|---------------|--------------------------------------------------------------------------|

| o   | securities transactions based on material, non-public information learned through their positions with the Company. |
|---------------|---------------------------------------------------------------------------------------------------------------------|

----

| ·   | neither the director nor any member of the director’s immediate family has been employed by, or received direct compensation (other than director’s fees, pension payments or other form of deferred compensation for prior service, provided such compensation is not contingent in any way on continued service) from the Company or any of its affiliates during the past three years (compensation received by an immediate family member for service as a non-executive employee is not considered in determining independence under this test); |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | neither the director nor any member of the director’s immediate family is, or in the past three years has been, affiliated with or employed (or, in the case of an immediate family member, employed in a professional capacity) by a present or former internal or external auditor of the Company or any of its affiliates; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | neither the director nor any member of the director’s immediate family is, or in the past three years has been, part of an interlocking directorate in which an executive officer of the Company serves on the compensation committee of another company that concurrently employs such director of the Company, or a member of such director’s immediate family, as an executive officer; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | neither the director nor any member of the director’s immediate family is, or in the past three years has been, an executive officer (or, in the case of the director, an employee) of a company that makes payments to, or receives payments from, the Company for property or services in an annual amount that exceeds 1% of such other company’s consolidated gross revenues; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | neither the director nor any member of the director’s immediate family is, or in the past three years has been, an officer or director of a non-profit organization that has received charitable contributions from the Company or any of its subsidiaries or affiliates in an annual amount in excess of the greater of $100,000 or 1% of such organization’s gross revenues. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                      |   | Years Ended December 31, |   |
|-----------------------------------------------------------|--------|--------------------------|--------|
|                                                      |   | 2011                     |   |   | 2010 |   |
|                                                      |   | (In thousands)           |   |
|   Audit Fees (1)                                     |   |                     |   |   |   |   |
|       PricewaterhouseCoopers LLP |   | $                        | 924    |   |   | $ | 1,128 |   |
|                                                      |   |                     |   |   |   |   |   |   |
|   Audit-Related Fees (2)                             |   |                     |   |   |   |   |   |   |
|       PricewaterhouseCoopers LLP |   |                     | -      |   |   |   | 85 |   |
|                                                      |   |                     |   |   |   |   |   |   |
|   Total Fees                                         |   | $                        | 924    |   |   | $ | 1,213 |   |

----

|   | SOUTHERN UNION COMPANY                                 |
|--------|--------------------------------------------------------|
|   |                                                   |
|   | By: /s/ Robert M. Kerrigan, III                        |
|   | Robert M. Kerrigan, III                                |
|   | Vice President, Assistant General Counseland Secretary |
|   |                          |

----

|        |   |                                                                                                   |
|-------------|--------|--------------------------------------------------------------------------------------------------------|
| Exhibit No. |   | Description                                                                                            |
|        |
|        |   |                                                                                                   |
| 31.1        |   | Certification pursuant to Exchange Act Rules 13a-14(a) and 15d-14 of the Chief Executive Officer. |
| 31.2        |   | Certification pursuant to Exchange Act Rules 13a-14(a) and 15d-14 of the Chief Financial Officer. |

----