Document:

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                                                                    Exhibit 10.2

                           PRUDENTIAL FINANCIAL, INC.

                                STOCK OPTION PLAN

                                    ARTICLE I
                                     PURPOSE

         The purpose of the "Prudential Financial, Inc. Stock Option Plan" (the
"Plan") is to foster and promote the long-term financial success of Prudential
Financial, Inc. (the "Company") and materially increase shareholder value by (a)
motivating superior employee performance by means of performance-related
incentives, (b) encouraging and providing for the acquisition of an ownership
interest in the Company by the Company's and its Subsidiaries' (as hereinafter
defined) employees and agents, and (c) enabling the Company to attract and
retain the services of outstanding employees upon whose judgment, interest, and
special effort the successful conduct of its operations is largely dependent.

                                   ARTICLE II

                                   DEFINITIONS

         2.1      Definitions.  Whenever used herein, the following terms shall
have the respective meanings set forth below:

                  Alternative Awards. "Alternative Awards" shall have the
         meaning set forth in Section 7.2.

                  Approved Retirement. "Approved Retirement" means termination
         of a Participant's employment (i) on or after the normal retirement
         date or any early retirement date established under any defined benefit
         pension plan maintained by the Company or a Subsidiary and in which the
         Participant participates or (ii) with the approval of the Committee
         (which may be given at or after grant), on or after attaining age 50
         and completing such period of service as the Committee shall determine
         from time to time. Notwithstanding the foregoing, with respect only to
         Participants who reside in the United States, the term "Approved
         Retirement" shall not apply to any Participant who has an Agent
         Emeritus contract with an insurance affiliate of the Company
         (including, but not limited to, The Prudential Insurance Company of
         America), whether or not such individual is deemed to be retirement
         eligible or is receiving retirement benefits under any defined benefit
         pension plan maintained by the Company or a Subsidiary and in which the
         Participant participates.

                  Associates Grant. "Associates Grant" shall have the meaning
         set forth in Section 3.3(c).

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                  Board.  "Board" means the Board of Directors of the Company.

                  Cause. "Cause" means the following (as determined by the
         Committee in its sole discretion): dishonesty, fraud or
         misrepresentation; inability to obtain or retain appropriate licenses;
         violation of any rule or regulation of any regulatory agency or
         self-regulatory agency; violation of any policy or rule of the Company
         or any Subsidiary; commission of a crime; or any act or omission
         detrimental to the conduct of the business of the Company or any
         Subsidiary.

                  Change of Control. A "Change of Control" shall be deemed to
         have occurred if:

                           (i)   any Person (as defined below) acquires
                  "beneficial ownership" (within the meaning of Rule 13d-3 under
                  the Exchange Act), directly or indirectly, of securities of
                  the Company representing 25% or more of the combined Voting
                  Power (as defined below) of the Company's securities; or

                           (ii)  within any 24-month period, the Incumbent
                  Directors (as defined below) shall cease to constitute at
                  least a majority of the Board or the board of directors of any
                  successor to the Company; provided, however, that any director
                  elected to the Board, or nominated for election, by a majority
                  of the Incumbent Directors then still in office shall be
                  deemed to be an Incumbent Director for purposes of this sub
                  clause (ii); or

                           (iii) upon the consummation of a Corporate Event (as
                  defined below), and immediately following the consummation of
                  which the stockholders of the Company immediately prior to
                  such Corporate Event do not hold, directly or indirectly, a
                  majority of the Voting Power of (x) in the case of a merger or
                  consolidation, the surviving or resulting corporation, (y) in
                  the case of a share exchange, the acquiring corporation or (z)
                  in the case of a division or a sale or other disposition of
                  assets, each surviving, resulting or acquiring corporation
                  which, immediately following the relevant Corporate Event,
                  holds more than 25% of the consolidated assets of the Company
                  immediately prior to such Corporate Event.

         Notwithstanding the foregoing, a Change of Control shall not be deemed
         to have occurred merely as a result of (i) a reorganization involving
         the Company in connection with which the Converted Insurer (as defined
         below) converts from a mutual life insurance company to a stock company
         whose shareholder is the Company; (ii) the Company becoming a direct or
         indirect subsidiary of a mutual Parent whose members are primarily
         persons who were policyholders of the Converted Insurer immediately
         prior to such transaction or (iii) an underwritten

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         offering of the equity securities of the Company where no Person
         (including any group (within the meaning of Rule 13d-5(b) under the
         Exchange Act)) acquires more than 25% of the beneficial ownership
         interests in such securities.

                  Change of Control Price. "Change of Control Price" means the
         highest price per share of Common Stock offered in conjunction with any
         transaction resulting in a Change of Control (as determined in good
         faith by the Committee if any part of the offered price is payable
         other than in cash) or, in the case of a Change of Control occurring
         solely by reason of a change in the composition of the Board, the
         highest Fair Market Value of the Common Stock on any of the 30 trading
         days immediately preceding the date on which a Change of Control
         occurs.

                  Code. "Code" means the Internal Revenue Code of 1986, as
         amended, including, for these purposes, any regulations promulgated by
         the Internal Revenue Service with respect to the provisions of the
         Code.

                  Committee. "Committee" means the Compensation Committee of the
         Board or such other committee of the Board as the Board shall designate
         from time to time, which committee shall consist of two or more
         members, each of whom shall be a "Non-Employee Director" within the
         meaning of Rule 16b-3, as promulgated under the Exchange Act, and an
         "outside director" within the meaning of section 162(m) of the Code.

                  Common Stock. "Common Stock" means the common stock of the
         Company, par value $0.01 per share.

                  Company. "Company" means Prudential Financial, Inc., a New
         Jersey corporation, and any successor thereto.

                  Converted Insurer. "Converted Insurer" means The Prudential
         Insurance Company of America, an affiliate of the Company.

                  Corporate Event. "Corporate Event" means a merger,
         consolidation, share exchange, division, sale or other disposition of
         all or substantially all of the assets of the Company, which has been
         approved by the shareholders of the Company

                  Disability. "Disability" means with respect to any
         Participant, long-term disability (but not optional long-term
         disability coverage) as defined under the welfare benefit plan
         maintained by either the Company or a Subsidiary and in which the
         Participant participates and from which the Participant is receiving a
         long-term disability benefit. In jurisdictions outside of the United
         States where long-term disability is covered by a mandatory or
         universal program sponsored by

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         the government or an industrial association, receipt of long-term
         disability benefit from such a program is considered to have met the
         disability definition of the Plan.

                  Domestic Partner. "Domestic Partner" means any person
         qualifying to be treated as a domestic partner of a Participant under
         the applicable policies, if any, of the Company or Subsidiary which
         employs the Participant.

                  Employee. "Employee" means any employee (including each
         officer) of, or insurance agent (whether or not a common law employee
         or a statutory employee) of, the Company or any Subsidiary.

                  Exchange Act. "Exchange Act" means the Securities Exchange Act
         of 1934, as amended.

                  Fair Market Value. "Fair Market Value" means, on any date, the
         price of the last trade, regular way, in the Common Stock on such date
         on the New York Stock Exchange or, if at the relevant time, the Common
         Stock is not listed to trade on the New York Stock Exchange, on such
         other recognized quotation system on which the trading prices of the
         Common Stock are then quoted (the "Applicable Exchange"). In the event
         that (i) there are no Common Stock transactions on the Applicable
         Exchange on any relevant date, Fair Market Value for such date shall
         mean the closing price on the immediately preceding date on which
         Common Stock transactions were so reported and (ii) the Applicable
         Exchange adopts a trading policy permitting trades after 5 P.M. Eastern
         Standard Time ("EST"), Fair Market Value shall mean the last trade,
         regular way, reported on or before 5 P.M. EST (or such earlier or later
         time as the Committee may establish from time to time). Finally, and
         notwithstanding the foregoing, to the extent any Option or SAR granted
         under the Plan is granted on or as of the effective date of any initial
         public offering of the Common Stock ("IPO"), the Fair Market Value for
         these purposes means the IPO price of such Common Stock.

                  Family Member. "Family Member" means, as to a Participant, any
         (i) child, stepchild, grandchild, parent, stepparent, grandparent,
         spouse, sibling, mother-in-law, father-in-law, son-in-law,
         daughter-in-law, brother-in-law, sister-in-law (including adoptive
         relationships), or Domestic Partner of such Participant, (ii) trusts
         for the exclusive benefit of one or more such persons and/or the
         Participant and (iii) other entity owned solely by one or more such
         persons and/or the Participant.

                  Incumbent Directors. "Incumbent Directors" means, with respect
         to any period of time specified under the Plan for purposes of
         determining a Change of

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         Control, the persons who were members of the Board at the beginning of
         such period.

                  Option (including ISOs and Nonstatutory Stock Options).
         "Option" means the right to purchase Common Stock at a stated price for
         a specified period of time. For purposes of the Plan, an Option may be
         either (i) an "Incentive Stock Option" ("ISO") within the meaning of
         Section 422 of the Code or (ii) an option which is not an Incentive
         Stock Option (a "Nonstatutory Stock Option").

                  Participant. "Participant" means any Employee designated by
         the affirmative action of the Committee (or its delegate) to
         participate in the Plan.

                  Person. "Person" means any person (within the meaning of
         Section 3(a)(9) of the Exchange Act), including any group (within the
         meaning of Rule 13d-5(b) under the Exchange Act)), but excluding any of
         the Company, any Subsidiary or any employee benefit plan sponsored or
         maintained by the Company or any Subsidiary.

                  SAR. "SAR" means a stock appreciation right granted under
         Section 6 in respect of one or more shares of Common Stock that
         entitles the holder thereof to receive, in cash or Common Stock, at the
         discretion of the Committee (which discretion may be exercised at or
         after grant, including after exercise of the SAR), an amount per share
         of Common Stock equal to the excess, if any, of the Fair Market Value
         on the date the SAR is exercised over the Fair Market Value on the date
         the SAR is granted.

                  Settlement Payment. "Settlement Payment" shall have the
         meaning set forth in Section 7.1.

                  Subsidiary. "Subsidiary" means any corporation or partnership
         in which the Company owns, directly or indirectly, more than 50% of the
         total combined voting power of all classes of stock of such corporation
         or of the capital interest or profits interest of such partnership.

                  Total Allocable Shares. "Total Allocable Shares" means, as
         defined in The Prudential Insurance Company of America Plan of
         Reorganization dated as of December 15, 2000, the number of "Allocable
         Shares" (the notional shares of Common Stock allocable among "Eligible
         Policyholders" under the Reorganization of The Prudential Insurance
         Company of America from a mutual insurance company to a stock insurance
         company, divided among the following forms of consideration: (a) Common
         Stock actually issued to such Eligible Policyholders, as well as (b)
         cash and "policy credits" issued to Eligible Policyholders under the
         terms of the Plan of Reorganization).

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         2.2 Gender and Number. Except when otherwise indicated by the context,
words in the masculine gender used in the Plan shall include the feminine
gender, the singular shall include the plural, and the plural shall include the
singular.

                                   ARTICLE III
                             POWERS OF THE COMMITTEE

         3.1 Power to Grant. The Committee shall determine those Employees to
whom Options or SARs shall be granted and the terms and conditions of any and
all such Options or SARs. The Committee may establish different terms and
conditions for different Participants and for the same Participant for each
Option or SAR such Participant may receive, whether or not granted at different
times.

         3.2 Administration.

             (a) Rules, Interpretations and Determinations. The Committee shall
         administer the Plan. The Committee shall have full authority to
         interpret and administer the Plan, to establish, amend, and rescind
         rules and regulations relating to the Plan, to provide for conditions
         deemed necessary or advisable to protect the interests of the Company,
         to construe the respective Option and/or SAR agreements and to make all
         other determinations necessary or advisable for the administration and
         interpretation of the Plan in order to carry out its provisions and
         purposes. Determinations, interpretations, or other actions made or
         taken by the Committee shall be final, binding, and conclusive for all
         purposes and upon all persons.

             (b) Agents and Expenses. The Committee may appoint agents (who may
         be officers or employees of the Company) to assist in the
         administration of the Plan and may grant authority to such persons to
         execute agreements or other documents on its behalf. All expenses
         incurred in the administration of the Plan, including, without
         limitation, for the engagement of any counsel, consultant or agent,
         shall be paid by the Company.

             (c) Delegation of Authority. The Committee may delegate to the
         Company's Chief Executive Officer the power and authority to make
         and/or administer awards under the Plan with respect to individuals who
         are below the position of Senior Vice President (or analogous title),
         pursuant to such conditions and limitations as the Committee may
         establish; provided that only the Committee or the Board may select,
         and grant Options and/or SARs to, Participants who are subject to
         Section 16 of the Exchange Act or exercise any other discretionary
         authority under the Plan in respect of Options or SARs granted to such
         Participants.

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         3.3      Certain Rules Relating to Grants.

                  (a) Maximum Individual Grants. During any five (5) year
         period, no individual Participant may be granted Options or SARs to
         acquire more than 5% of the total shares available under the Plan;
         provided that, to the extent that SARs are granted in tandem with an
         Option, so that only one may be exercised with the other terminating
         upon such exercise, the number of shares of Common Stock subject to
         such tandem Option and SAR award shall only be taken into account once
         (and not as to both awards) for purposes of this limit.

                  (b) Repricing or Substitution of Options. The Committee shall
         not have the right to reprice outstanding Options or SARs or to grant
         new Options or SARs under the Plan in substitution for or upon the
         cancellation of Options or SARs previously granted.

                  (c) Broad Based Grants. Notwithstanding anything else to the
         contrary contained herein, the Committee may authorize the grant of
         Nonstatutory Stock Options to a broad based group of Employees,
         including all Employees or all Employees other than such class or
         classes of Employees as the Committee shall determine ("Associates
         Grants"). Unless the Committee shall otherwise determine, any such
         Associates Grant shall be made on terms and conditions that are
         substantially the same for all Employees (or all Employees in a
         specified classification of Employees) receiving such grant.

                                   ARTICLE IV
                          COMMON STOCK SUBJECT TO PLAN

         4.1      Number. Subject to the provisions of Section 4.3, the number
of shares of Common Stock issuable under the Plan in its entirety shall not
exceed seven percent (7%) of the Company's Total Allocable Shares in the
aggregate. Of that percentage, two percent (2%) of the Company's Total Allocable
Shares are reserved for any Associates Grants under the Plan, with the remaining
five percent (5%) available for the general grant of Options and SARs under the
Plan. The number of shares of Common Stock reflecting these percentages will be
set forth in Exhibit A to the Plan once such numbers are capable of calculation.
The number of shares of Common Stock issuable under the Plan described above is
reduced by the number of shares of Common Stock, if any, subject to outstanding
options granted to, or that were subject to options that have been exercised by,
(i) any individual who is (or was, at the time of the grant of such options) a
member of the Board and not an Employee or (ii) an individual or entity whose
rights in respect of such options derived from such a member of the Board. When
a SAR is granted in tandem with an Option, so that only one may be exercised
with the other terminating upon such exercise, the number of shares of Common
Stock subject to the tandem Option and SAR award shall only be taken into
account once (and not as to both

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awards) for purposes of this limit (and for purposes of the provisions of
Section 4.2. The shares to be delivered under the Plan may consist, in whole or
in part, of treasury Common Stock or authorized but unissued Common Stock, not
reserved for any other purpose.

         4.2 Canceled or Terminated Options or SARs. Any shares of Common Stock
subject to an Option or SAR which for any reason expires without having been
exercised, is canceled or terminated or otherwise is settled without the
issuance of any Common Stock (including, but not limited to, shares tendered to
exercise outstanding Options or shares tendered or withheld for taxes) shall
again be available for grants of Options or SARs under the Plan. Notwithstanding
the foregoing, in the event that any SARs are exercised for cash or shares of
Common Stock, the number of shares of Common Stock as to which such SARs have
been exercised (and not just the number of shares actually issued) shall be
deemed issued for purposes of determining the limit under Section 4.1 and shall
not again be available for issuance pursuant to this Section 4.2.

         4.3 Adjustment in Capitalization. In the event of any Common Stock
dividend or Common Stock split, recapitalization (including, but not limited, to
the payment of an extraordinary dividend), merger, consolidation, combination,
spin-off, distribution of assets to stockholders (other than ordinary cash
dividends), exchange of shares, or other similar corporate change, the aggregate
number of shares of Common Stock available for Options or SARs under Section 4.1
or subject to outstanding Options or SARs and the respective exercise prices or
base prices applicable to outstanding Options or SARs may be appropriately
adjusted by the Committee, in its discretion, and the Committee's determination
shall be conclusive.

                                    ARTICLE V
                                  STOCK OPTIONS

         5.1 Grant of Options. Subject to the provisions of Section 4.1, Options
may be granted to Participants at such time or times as shall be determined by
the Committee. Options granted under the Plan may be of two types: (i) ISOs and
(ii) Nonstatutory Stock Options. Except as otherwise provided herein, the
Committee shall have complete discretion in determining the number of Options,
if any, to be granted to a Participant, except that ISOs may only be granted to
Employees who are common law employees of the Company or one of its majority
owned subsidiaries (within the meaning of Section 424 of the Code). Each Option
grant shall be evidenced by an Option agreement that shall specify the type of
Option granted, the exercise price, the duration of the Option, the number of
shares of Common Stock to which the Option pertains, and such other terms and
conditions as the Committee shall determine which are not inconsistent with the
provisions of the Plan.

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         5.2 Exercise Price. Nonstatutory Stock Options and ISOs granted
pursuant to the Plan shall have an exercise price no less than the Fair Market
Value of a share of Common Stock on the date the Option is granted.

         5.3 Exercise of Options. Unless the Committee shall impose a different
schedule requiring a longer or shorter period of service to exercise in full any
Option granted hereunder, one-third of each Nonstatutory Stock Option or ISO
granted pursuant to the Plan shall become exercisable on each of the first three
anniversaries of the date such Option is granted; provided that the Committee
may establish performance-based criteria for exercisability that can accelerate
the exercisability of all or any portion of any Option. Subject to the
provisions of this Article V, once any portion of any Option has become
exercisable it shall remain exercisable for its full term. The Committee shall
determine the term of each Nonstatutory Stock Option or ISO granted, but, except
as expressly provided below, in no event shall any such Option be exercisable
for more than 10 years after the date on which it is granted.

         5.4 Payment. The Committee shall establish procedures governing the
exercise of Options. No shares shall be delivered pursuant to any exercise of an
Option unless arrangements satisfactory to the Committee have been made to
assure full payment of the exercise price therefor. Without limiting the
generality of the foregoing, payment of the exercise price may be made: (a) in
cash or its equivalent (b) by exchanging shares of Common Stock (which are not
the subject of any pledge or other security interest) which have been owned by
the person exercising the Option for at least six (6) months at the time of
exercise; (c) through an arrangement with a broker approved by the Company
whereby payment of the exercise price is accomplished with the proceeds of the
sale of Common Stock; or (iv) by any combination of the foregoing; provided that
the combined value of all cash and cash equivalents paid and the Fair Market
Value of any such Common Stock so tendered to the Company, valued as of the date
of such tender, is at least equal to such exercise price. The Company may not
make a loan to a Participant to facilitate such Participant's exercise of any of
his or her Options.

         5.5 ISOs. Notwithstanding anything in the Plan to the contrary, no
Option that is intended to be an ISO may be granted after the tenth anniversary
of the effective date of the Plan and no term of this Plan relating to ISOs
shall be interpreted, amended or altered, nor shall any discretion or authority
granted under the Plan be so exercised, so as to disqualify the Plan under
Section 422 of the Code, or, without the consent of any Participant affected
thereby, to disqualify any ISO under such Section 422.

         5.6 Termination of Employment.

             (a) Due to Death. In the event a Participant's employment
         terminates by reason of death, any Options granted to such Participant
         shall become immediately exercisable in full and may be exercised by
         the Participant's estate or

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         as may otherwise be provided for in accordance with the requirements of
         Section 9.2, at any time prior to the later of (i) the first
         anniversary of the Participant's death or (ii) the earlier to occur of
         (A) the expiration of the term of the Options or (B) the third
         anniversary (or such earlier date as the Committee shall determine at
         the time of grant) of the Participant's death.

             (b) Due to Disability. In the event a Participant's employment is
         terminated by his or her employer by reason of Disability, any Options
         granted to such Participant shall become immediately exercisable in
         full and may be exercised by the Participant (or, in the event of the
         Participant's death after termination of employment when the Option is
         exercisable pursuant to its terms, by the Participant's estate or as
         otherwise may be provided for in accordance with the requirements of
         Section 9.2), at any time prior to the expiration date of the term of
         the Options or within three (3) years (or such shorter period as the
         Committee shall determine at the time of grant) following the
         Participant's termination of employment, whichever period is shorter.

             (c) Due to Approved Retirement. In the event a Participant's
         employment terminates by reason of Approved Retirement, any Options
         granted to such Participant which are then outstanding shall become
         immediately exercisable in full and may be exercised by the Participant
         (or, in the event of the Participant's death after termination of
         employment when the Option is exercisable pursuant to its terms, by the
         Participant's estate or as otherwise may be provided for in accordance
         with Section 9.2), at any time prior to the expiration date of the term
         of the Options or within five (5) years (or such shorter period as the
         Committee shall determine at the time of grant) following the
         Participant's Approved Retirement, whichever period is shorter.

             (d) Termination of Employment For Cause or Resignation. In the
         event a Participant's employment is terminated by the Company or any
         Subsidiary for Cause or by the Participant other than due to his death,
         Disability, Approved Retirement or within 12 months of a Change of
         Control, any Options granted to such Participant that are then not yet
         exercised shall expire at the time of such termination and not be
         exercisable thereafter.

             (e) Termination of Employment for Any Other Reason. Unless
         otherwise determined by the Committee at or following the time of
         grant, in the event the employment of the Participant shall terminate
         for any reason other than one described in Section 5.6 (a) through (d),
         any Options granted to such Participant which are exercisable at the
         date of the Participant's termination of employment may be exercised by
         the Participant (or, in the event of the Participant's death after
         termination of employment when the Option is exercisable pursuant to
         its terms, by the Participant's estate or as may otherwise

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         be provided for in accordance with the requirements of Section 9.2) at
         any time prior to the expiration of the term of the Options or the
         ninetieth day following the Participant's termination of employment,
         whichever period is shorter, and any Options that are not exercisable
         at the time of termination of employment shall expire at the time of
         such termination and not be exercisable thereafter.

         5.7 Restrictive Covenants and Other Conditions. Without limiting the
generality of the foregoing, the Committee may condition the grant of any Option
under the Plan upon the Employee to whom such Option would be granted agreeing
in writing to certain conditions in addition to the provisions regarding
exercisability of the Option (such as restrictions on the ability to transfer
the underlying shares of Common Stock) or covenants in favor of the Company
and/or one or more Subsidiaries (including, without limitation, covenants not to
compete, not to solicit employees and customers and not to disclose confidential
information, that may have effect following the termination of the Employee's
employment with the Company and its Subsidiaries and after the Option has been
exercised, including, without limitation, the requirement that the Employee
disgorge any profit, gain or other benefit received in respect of the exercise
of the Option prior to any breach of any such covenant by the Employee).
Notwithstanding the foregoing, no Associates Grant shall contain any such
restrictions or covenants.

                                   ARTICLE VI
                        STOCK APPRECIATION RIGHTS (SARs)

         6.1 Grant of SARs. SARs may be granted to any Participants, all
Participants or any class of Participants at such time or times as shall be
determined by the Committee. SARs may be granted in tandem with an Option, or
may granted on a freestanding basis, not related to any Option. A grant of a SAR
shall be evidenced in writing, whether as part of the agreement governing the
terms of the Option, if any, to which such SARs relate or pursuant to a separate
written agreement with respect to freestanding SARs, in each case containing
such provisions not inconsistent with the Plan as the Committee shall approve.

         6.2 Terms and Conditions of SARs. Notwithstanding the provisions of
Section 6.1, unless the Committee shall otherwise determine the terms and
conditions (including, without limitation, the exercise period of the SAR, the
vesting schedule applicable thereto and the impact of any termination of service
on the Participant's rights with respect to the SAR) applicable with respect to
(i) SARs granted in tandem with an Option shall be substantially identical (to
the extent possible taking into account the differences related to the character
of the SAR) to the terms and conditions applicable to the tandem Options and
(ii) freestanding SARs shall be substantially identical (to the extent possible
taking into account the differences related to the character of the SAR) to the
terms and conditions that would have been applicable under Section 5 were the
grant of the SARs a grant of an Option.

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         6.3 Exercise of Tandem SARs. SARs which are granted in tandem with an
Option may only be exercised upon the surrender of the right to exercise such
Option for an equivalent number of shares and may be exercised only with respect
to the shares of Stock for which the related Option is then exercisable.

         6.4 Payment of SAR Amount. Upon exercise of a SAR, the holder shall be
entitled to receive payment, in cash, in shares of Common Stock or in a
combination thereof, as determined by the Committee, of an amount determined by
multiplying:

             (a) the excess, if any, of the Fair Market Value of a share of
         Stock at the date of exercise over the Fair Market Value of a share of
         Common Stock on the date of grant, by

             (b) the number of shares of Common Stock with respect to which the
         SARs are then being exercised;

provided, however, that at the time of grant, the Committee may establish, in
its sole discretion, a maximum amount per share which will be payable upon
exercise of a SAR.

                                   ARTICLE VII
                                CHANGE OF CONTROL

         7.1 Accelerated Vesting and Payment. Subject to the provisions of
Section 7.2, in the event of a Change of Control each Option and SAR then
outstanding shall be fully exercisable regardless of the exercise schedule
otherwise applicable to such Option and/or SAR and, in connection with such a
Change of Control, the Committee may, in its discretion, provide that each
Option and/or SAR shall, upon the occurrence of such Change of Control, be
canceled in exchange for a payment per share (the "Settlement Payment") in an
amount equal to the excess, if any, of the Change of Control Price over the
exercise price for such Option or the base price of such SAR. Such Settlement
Payment shall be in the form of cash, unless the transaction which constitutes
the Change of Control is intended to qualify for treatment as a "Pooling of
Interests" under APB No. 16 (or any successor thereto), in which case such
Settlement Payment shall be in registered stock of the same class as is
otherwise provided to the shareholders of the Company.

         7.2 Alternative Awards. Notwithstanding Section 7.1, no cancellation,
acceleration of exercisability, vesting, cash settlement or other payment shall
occur with respect to any Option or SAR if the Committee reasonably determines
in good faith prior to the occurrence of a Change of Control that such Option or
SAR shall be honored or assumed, or new rights substituted therefore (such
honored, assumed or substituted award hereinafter called an "Alternative
Award"), by a Participant's employer (or the parent or

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an affiliate of such employer) immediately following the Change of Control;
provided that any such Alternative Award must:

             (a) be based on stock which is traded on an established securities
         market;

             (b) provide such Participant with rights and entitlements
         substantially equivalent to or better than the rights, terms and
         conditions applicable under such Option or SAR, including, but not
         limited to, an identical or better exercise or vesting schedule and
         identical or better timing and methods of payment;

             (c) have substantially equivalent economic value to such Option or
         SAR (determined at the time of the Change in Control); and

             (d) have terms and conditions which provide that in the event that
         the Participant's employment is involuntarily terminated for any reason
         (including, but not limited to a termination due to death, Disability
         or for Cause) or constructively terminated (as described below), all of
         such Participant's Options and/or SARs shall be deemed immediately and
         fully exercisable and shall be settled for a payment per each share of
         stock subject to the Alternative Award in cash, in immediately
         transferable, publicly traded securities or in a combination thereof,
         in an amount equal to the excess of the Fair Market Value of such stock
         on the date of the Participant's termination over the corresponding
         exercise or base price per share.

For this purpose, a "constructive termination" shall mean a termination of
employment by a Participant following a material reduction in the Participant's
base salary or a Participant's incentive compensation opportunity, in either
case without the Participant's written consent.

         7.3 Accounting Issues. In applying the provisions of this Article VII
to a Pooling of Interests, the provisions related to business combinations under
FASB Interpretation No. 44, "Accounting for Certain Transactions Involving Stock
Compensation - an Interpretation of APB Opinion No. 25" (including any
interpretations and modifications thereof) shall be taken into account.

                                  ARTICLE VIII
                AMENDMENT, MODIFICATION, AND TERMINATION OF PLAN

         8.1 General. The Board may, at any time and from time to time amend,
modify, suspend, or terminate this Plan, in whole or in part, without notice to
or the consent of any participant or employee; provided, however, that any
amendment which would (i) increase the number of shares available for issuance
under the Plan or (ii) lower

                                       13

<PAGE>

the minimum exercise price at which an Option (or the base price at which a SAR)
may be granted shall be subject to the approval of the Company's shareholders.
No amendment, modification, or termination of the Plan shall in any manner
adversely affect any Option or SAR theretofore granted under the Plan, without
the consent of the Participant.

         8.2 Non-U.S. Employees. With respect to any Subsidiary of the Company
which employs Participants who reside outside of the United States, the
Committee may in its sole discretion amend or vary the terms of this Plan in
order to conform such terms with the requirements of local law to meet the
objectives and purpose of this Plan, and the Committee may, where appropriate,
establish one or more sub-plans to reflect such amended or varied provisions.

                                   ARTICLE IX
                            MISCELLANEOUS PROVISIONS

         9.1 Transferability of Options or SARs. No Options or SARs granted
under the Plan may be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and
distribution; provided that the Committee may, in the Option agreement or
otherwise, permit transfers of Nonstatutory Stock Options with or without tandem
SARs and freestanding SARs to Family Members (including, without limitation,
transfers effected by a domestic relations order).

         9.2 Treatment of Any Outstanding Rights or Features Upon Participant's
Death. Any Options, SARs, rights or features remaining unexercised or unpaid at
the Participant's death shall be paid to, or exercised by, the Participant's
estate except where otherwise provided by law, or when done in accordance with
other methods (including a beneficiary designation process) put in place by the
Committee or a duly appointed designee from time to time. Except as otherwise
provided herein, nothing in this Plan is intended or may be construed to give
any person other than Participants any options, rights or remedies under this
Plan.

         9.3 Deferral of Payment. The Committee may, in the Option agreement or
otherwise, permit a Participant to elect, upon such terms and conditions as the
Committee may establish, to defer receipt of shares of Common Stock that would
otherwise be issued upon exercise of a Nonstatutory Stock Option with or without
tandem SARs or freestanding SARs. Notwithstanding anything else contained herein
to the contrary, deferrals shall not be permitted hereunder in a way which will
result in the Company or any Subsidiary being required to recognize a financial
accounting charge due to such deferral which is substantially greater than the
charge, if any, that was associated with the underlying Options or SARs.

                                       14

<PAGE>

         9.4 No Guarantee of Employment or Participation. The terms or existence
of this Plan, as in effect at any time or from time to time, or any grant of
Options or SARs under the Plan, shall not interfere with or limit in any way the
right of the Company or any Subsidiary to terminate any Participant's employment
at any time, nor confer upon any Participant any right to continue in the employ
of the Company or any Subsidiary or any other affiliate of the Company. Except
to the extent expressly selected by the Committee to be a Participant, no person
(whether or not an Employee or a Participant) shall at anytime have a right to
be selected for (or additional) participation in the Plan, despite having
previously participated in an incentive or bonus plan of the Company or an
affiliate. The existence of the Plan shall not be deemed to constitute a
contract of employment between the Company or any affiliate and any Employee or
Participant, nor shall it constitute a right to remain in the employ of the
Company or any affiliate.

         9.5 Tax Withholding. The Company, Subsidiary or an affiliate shall have
the right to deduct from all payments or distributions hereunder any federal,
state, or local taxes or other obligations required by law to be withheld with
respect thereto. The Company may defer issuance of Common Stock upon the
exercise of an Option or a SAR until such requirements are satisfied. The
Committee may, in its discretion, permit a Participant to elect, subject to such
conditions as the Committee shall impose, (a) to have shares of Common Stock
otherwise issuable under the Plan withheld by the Company or (b) to deliver to
the Company previously acquired shares of Common Stock, in either case for the
greatest number of whole shares having a Fair Market Value on the date
immediately preceding the date of exercise not in excess of the minimum amount
required to satisfy the statutory withholding tax obligations upon the
corresponding exercise of an Option or a SAR settled in Common Stock.

         9.6 No Limitation on Compensation; Scope of Liabilities. Nothing in the
Plan shall be construed to limit the right of the Company to establish other
plans if and to the extent permitted by applicable law. The liability of the
Company, Subsidiary or any affiliate under this Plan is limited to the
obligations expressly set forth in the Plan, and no term or provision of this
Plan may be construed to impose any further or additional duties, obligations,
or costs on the Company or any affiliate thereof or the Committee not expressly
set forth in the Plan.

         9.7 Requirements of Law. The granting of Options or SARs and the
issuance of shares of Common Stock shall be subject to all applicable laws,
rules, and regulations, and to such approvals by any governmental agencies or
national securities exchanges as may be required.

         9.8 Term of Plan. The Plan shall be effective upon its adoption by the
Board and approval by the New Jersey Commissioner of Banking and Insurance. The
Plan shall continue in effect, unless sooner terminated pursuant to Article
VIII, until no more shares are available for issuance under the Plan.

                                       15

<PAGE>

         9.9  Governing Law.  The Plan, and all agreements hereunder, shall be
construed in accordance with and governed by the laws of the State of New
Jersey, without regard to principles of conflict of laws.

         9.10 No Impact On Benefits. Except as may otherwise be specifically
stated under any employee benefit plan, policy or program, Options and SARs
shall not be treated as compensation for purposes of calculating an Employee's
right under any such plan, policy or program.

         9.11 No Constraint on Corporate Action. Except as provided in Article
VIII, nothing contained in this Plan shall be construed to prevent the Company,
or any affiliate, from taking any corporate action (including, but not limited
to, the Company's right or power to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure, or to merge or
consolidate, or dissolve, liquidate, sell, or transfer all or any part of its
business or assets) which is deemed by it to be appropriate, or in its best
interest, whether or not such action would have an adverse effect on this Plan,
or any awards made under this Plan. No employee, beneficiary, or other person,
shall have any claim against the Company, any Subsidiary, or any of its
affiliates, as a result of any such action.

         9.12 Captions. The headings and captions appearing herein are inserted
only as a matter of convenience. They do not define, limit, construe, or
describe the scope or intent of the provisions of the Plan.

                                       16<PAGE>

                                                                    Exhibit 10.3

                             PRUDENTIAL SUPPLEMENTAL
                                 RETIREMENT PLAN

                        (effective as of January 1, 2001,
                      except as otherwise provided herein)

         The Prudential Supplemental Retirement Plan (the "Plan") has been
established by The Prudential Insurance Company of America, effective January 1,
1996, for the purpose of providing unfunded supplemental retirement benefits for
certain eligible employees (and their beneficiaries) that cannot be provided by
the Retirement System (as defined below) because of limits imposed by the Code.
The Plan provides Participants (and their beneficiaries) with one or more of the
following categories of benefits: (a) Supplemental Benefits (i.e., excluded
compensation benefits, excess benefits, and deferred compensation benefits); (b)
Special Early Retirement Benefits; (c) Death Benefits; and (d) ad hoc cost of
living adjustments.

         The portion of the Plan that provides excess benefits (i.e., benefits
that, pursuant to Code section 415, may not be provided under a tax-qualified
retirement plan) is intended to be, and shall be administered as, an excess
benefit plan within the meaning of section 3(36) of ERISA. The remainder of the
Plan is intended to be, and shall be administered as, an unfunded plan
maintained for the purpose of providing deferred compensation for a select group
of management or highly compensated employees within the meaning of Title I of
ERISA.

         The Plan, as restated as of January 1, 1996, was a restatement of that
portion of the Prior Programs that related to benefits under the Retirement
System. That portion of the Prior Programs that related to benefits under the
Canadian Retirement Plan was not affected by the restatement. Amounts accrued,
but not yet paid under the Prior Programs on December 31, 1995, that were
related to benefits under the Retirement System shall be paid under this Plan;
provided that Participants who incurred a Termination of Employment prior to
January 1, 1996 shall receive benefits in accordance with the terms of the Prior
Programs in effect at such Termination of Employment.

         The Plan, as restated as of January 1, 2001, is a restatement that
reflects certain changes to the Retirement System, including implementation of a
cash balance formula with respect to new hires and rehires on and after January
1, 2001, and implementation of an elective cash balance formula with respect to
Eligible Employees who were employed on December 31, 2000, had accrued benefits
under the Prudential Traditional Retirement Plan, remained Employees through
January 1, 2002, and elected to participate in the Prudential Cash Balance Plan.
Amounts accrued, but not yet paid on December 31, 2000, that were related to
benefits under the Prudential Traditional Retirement Plan shall be paid under
this Plan; provided that Participants who incurred a Termination of Employment
prior to January 1, 2001 shall receive benefits in accordance with the terms of
the Plan in effect at such Termination of Employment.

                                        1

<PAGE>

                                    Article I

                                   DEFINITIONS

         The following terms shall have the meanings hereinafter set forth.
Other terms that are capitalized in the Plan shall be defined in the same manner
as they are defined in the Retirement System.

         1.1  "Board of Directors" means the Board of Directors of the Company.

         1.2  "Canadian Retirement Plan" means The Prudential Insurance Company
of America and Participating Affiliated Companies 1976 Retirement System for
Canadian Employees, a defined benefit retirement plan maintained by the Company.

         1.3  "Code" means the Internal Revenue Code of 1986, as amended.

         1.4  "Committee" means the committee described in the claims and
appeals section of the Prudential Traditional Retirement Plan.

         1.5  "Company" means The Prudential Insurance Company of America.

         1.6  "Controlled Group" means the Company and (a) each corporation
which is a member of a controlled group of corporations (within the meaning of
Code section 414(b)) which includes the Company, (b) each trade or business
(whether or not incorporated) which is under common control with the Company
(within the meaning of Code section 414(c), (c) each organization included in
the same affiliated service group (within the meaning of Code section 414(c)) as
the Company, and (d) each other entity required to be aggregated with the
Company pursuant to regulations promulgated under Code section 414(o). Any such
entity shall be treated as part of the Controlled Group only for the period
while it is a member of the controlled group or considered to be in a common
control group.

         1.7  "Death Benefits" means benefits that are payable upon the death of
a Participant in accordance with Article VI of the Plan.

         1.8  "Deferred Compensation Plan" means the Prudential Consolidated
Deferred Compensation Plan, the Deferred Compensation Plan effective January 1,
2000, and any subsequent plans maintained by the Company for the purpose of (a)
providing deferred compensation for a select group of management or highly
compensated employees within the meaning of Title I of ERISA, and (b) permitting
such employees to defer a portion or all of certain specified bonuses to a
specified date or occurrence.

         1.9  "Employer" means the Company and each Participating Affiliated
Company in the Retirement System.

         1.10 "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended.

         1.11 "Participant" means an individual who is accruing benefits under
Article II or Article III. An individual shall be a Participant only with
respect to those benefits for which the individual satisfies applicable
eligibility requirements. A Participant also includes an individual who has
previously accrued benefits under the terms of (a) one or more of the Prior
Programs as they relate to benefits under the Retirement System, or (b) the
Plan, but in each case has not yet received all such accrued benefits.

                                        2

<PAGE>

         1.12 "Plan" means this Prudential Supplemental Retirement Plan as
amended from time to time.

         1.13 "Prior Programs" means the Excess Benefit Retirement Income
Program, the Supplemental Retirement Income Program, and the Spouse Income
Program, as maintained by the Company and in effect from time to time prior to
1996.

         1.14 "Prudential Cash Balance Plan" means the Prudential Cash Balance
Pension Plan Document, a component of the Prudential Merged Retirement Plan.

         1.15 "Prudential Merged Retirement Plan" means The Prudential Merged
Retirement Plan, a defined benefit retirement plan maintained by the Company.

         1.16 "Prudential Traditional Retirement Plan" means The Prudential
Traditional Retirement Plan Document, a component of the Prudential Merged
Retirement Plan.

         1.17 "Retirement System" means the Prudential Cash Balance Plan and the
Prudential Traditional Retirement Plan, components of the Prudential Merged
Retirement Plan.

         1.18 "Special Early Retirement Benefits" means benefits accrued by
Participants in accordance with Article III of the Plan.

         1.19 "Supplemental Benefits" means benefits accrued by Participants in
accordance with Article II of the Plan.

         1.20 "Termination of Employment" means the voluntary or involuntary
termination of employment with the Controlled Group for any reason, including
death.

                                        3

<PAGE>

                                   ARTICLE II

                              SUPPLEMENTAL BENEFITS

         2.1 Eligibility. Each participant in the Retirement System who
satisfies one or more of the following requirements is a Participant eligible to
accrue Supplemental Benefits under this Article:

             (a) a participant in the Retirement System whose retirement
benefits under the Retirement System do not accrue or are reduced by reason of
Code section 401(a)(17) (as reflected in the applicable provisions of the
Retirement System);

             (b) a participant in the Retirement System whose retirement
benefits under the Retirement System do not accrue or are reduced by reason of
Code section 415; or

             (c) a participant in the Retirement System who defers payment of a
portion of compensation from the Employer pursuant to (1) a Deferred
Compensation Plan, or (2) effective January 1, 1989, the Prudential Supplemental
Employee Savings Plan (or one of its predecessor plans, the Non-Qualified
Deferred Compensation Plan) that would, but for the deferral of payment,
constitute pensionable Earnings under the Retirement System (including any such
compensation that would have constituted Earnings but would have exceeded the
limit on compensation imposed by Code section 401(a)(17)).

         2.2 Amount.

             (a) The amount of a Participant's Supplemental Benefits under this
Article shall be an amount equal to the excess, if any, of (1) over (2) below:

                 (1) such Participant's hypothetical retirement benefits that
would be payable under the Retirement System determined: (i) without regard to
the limit on compensation imposed by Code section 401(a)(17) (as reflected in
the applicable provisions of the Retirement System); (ii) without regard to the
limits on benefits imposed by Code section 415(b) (as reflected in the
applicable provisions of the Retirement System); and (iii) determined by
including as pensionable Earnings the amount of the deferred compensation under
the Deferred Compensation Plan and the Prudential Supplemental Employee Savings
Plan that would, but for the deferral of payment, constitute pensionable
Earnings under the Retirement System (including such compensation that would
have constituted Earnings had it not exceeded the limit on compensation imposed
by Code section 401(a)(17) and determined without regard to the limits on
benefits imposed by Code section 415(b)); and

                 (2) such Participant's retirement benefits that are payable
under the Retirement System.

                                        4

<PAGE>

                                   ARTICLE III

                        SPECIAL EARLY RETIREMENT BENEFITS

         3.1 Eligibility. Each participant in the Retirement System (a) who is
entitled, under the terms of the Retirement System, to a benefit payable under
the Prudential Traditional Retirement Plan or to a Subsidized Grandfathered
Minimum Benefit payable under the Prudential Cash Balance Plan, (b) who retires
directly from Employer service as an Office Employee on or after the first day
of the month coinciding with or next following such Participant's fifty-ninth
(59th) birthday, (c) who could complete twenty-five (25) years of Continuous
Service for the Employer before the first day of the month coinciding with or
next following such Participant's sixty-fifth (65th) birthday, and (d) whose
last three consecutive years of Continuous Service were at a grade from 1
through 6 and/or a rank no lower than that of departmental vice president or
managing director, or the equivalent of such grade or rank, is a Participant
eligible to accrue Special Early Retirement Benefits under this Article. For a
Participant in the Prudential Cash Balance Plan to receive such Special Early
Retirement Benefits, the Participant must commence his or her Subsidized
Grandfathered Minimum Benefit under the terms of the Prudential Cash Balance
Plan in the form of an annuity.

         3.2 Amount. The amount of a Participant's Special Early Retirement
Benefits, in the case of a Participant who retires before his or her Normal
Retirement Date, shall be an amount equal to the excess, if any, of (a) over (b)
below:

             (a) such Participant's accrued retirement benefits under the
Prudential Traditional Retirement Plan or Subsidized Grandfathered Minimum
Benefit under the Cash Balance Plan, and accrued benefits under Article II of
this Plan without reductions for early commencement of benefits, multiplied by
the applicable adjustment factor in paragraphs (1), (2) or (3) set forth below:

                 (1) if the Participant retires on or after the first day of the
month following the date he or she has both completed twenty-five (25) year of
Continuous Service with the Employer and attained age sixty (60), the adjustment
factor used in determining such benefits shall be equal to 1.00;

                 (2) if the Participant retires on or after the first day of the
month following the date he or she attains age sixty (60) and before he or she
has completed twenty-five (25) years of Continuous Service with the Employer,
the adjustment factor used in determining such benefits shall be equal to 1.00,
reduced by 5/9 of 1.00% for each full month by which the Participant's Annuity
Starting Date precedes the first day of the month following the date such
Participant would have completed twenty-five (25) years of Continuous Service
with the Employer; or

                 (3) if the Participant retires on or after the first day of the
month following the date he or she attains age fifty-nine (59) and prior to the
first day of the month following the date he or she attains age sixty (60), the
adjustment factor used in determining such benefits shall be equal to 1.00,

                     (i)  reduced by 5/9 of 1.00% for each full month by which
the Participant's Annuity Starting Date precedes the first day of the month
following the date such Participant would have completed twenty-five (25) years
of Continuous Service with the Employer, but excluding any full months by which
the Participant's Annuity Starting Date precedes the first day of the month
following attainment of age sixty (60), and

                                        5

<PAGE>

                     (ii) further reduced for each remaining full month, if any,
by which the Participant's Annuity Starting Date precedes the first day of the
month following attainment of age sixty (60) by one-twelfth of the excess of:
(A) the adjustment factor set forth in subparagraph (i) above, over (B) the
adjustment factor applicable at age fifty-nine (59) under the Prudential
Traditional Retirement Plan; and

             (b) such Participant's accrued early retirement benefits under
Article XI of the Retirement System (or any successor provision) or Subsidized
Grandfathered Minimum Benefit payable at early retirement under the Prudential
Cash Balance Plan, and such Participant's accrued benefits under Article II of
this Plan (as adjusted to reflect the early commencement of benefits).

                                        6

<PAGE>

                                   ARTICLE IV

                                  DUAL BENEFITS

         If a Participant is entitled, under the terms of the Retirement System,
both to a benefit payable under the Prudential Traditional Retirement Plan and
to a benefit payable under the Prudential Cash Balance Plan, Plan provisions
applicable to Participants entitled to benefits payable under the Prudential
Traditional Retirement Plan shall apply only with respect to Plan benefits
calculated by reference to the Prudential Traditional Retirement Plan.
Similarly, Plan provisions applicable to Participants entitled to benefits
payable under the Prudential Cash Balance Plan shall apply only with respect to
Plan benefits calculated by reference to the Prudential Cash Balance Plan.

                                        7

<PAGE>

                                    ARTICLE V

                               PAYMENT OF BENEFITS

         5.1 Payment of Benefits. If a Participant has accrued any benefits
described in Articles II and III of the Plan and is 100% vested (not including
amounts 100% vested solely on account of the application of Code section 420)
under the Retirement System (or is vested in this Plan pursuant to Section
9.1(c)), such Participant shall, subject to Section 5.3 below, begin receiving
Plan payments on the date monthly benefits commence under the Retirement System
and payments shall continue monthly thereafter, as long as payments to the
Participant or the Participant's beneficiary are made for that same month under
the Retirement System.

         5.2 Form of Benefit. Subject to Sections 5.3 and 5.4 below, benefits
payable under the Plan shall be paid to the Participant (and his or her
beneficiary) in the same form (or forms) of benefit as the benefit payable to
such Participant (and beneficiary) under the applicable component of the
Retirement System; provided, however, that:

             (a) the variable annuity option described in the Prudential
Traditional Retirement Plan is not available with respect to payments under the
Plan (and, to the extent a Participant elects a variable annuity option under
the Retirement System for some or all of his or her benefit, payments under the
Plan with respect to that portion of the Participant's benefit shall be made in
the standard forms set out in Section 1501 of the Prudential Traditional
Retirement Plan); and

             (b) the level income option described in the Prudential
Traditional Retirement Plan will be applied so that payments under the Plan are
adjusted, if necessary, so that the sum of the Participant's benefits under the
Prudential Traditional Retirement Plan, Primary Insurance Benefits related to
Active Service with the Company expected to become payable under Title II of the
Federal Social Security Act, and benefits under the Plan are as nearly uniform
as practical each month both before and after the earliest date the Participant
could receive payment of such Primary Insurance Benefits.

         5.3 Single Sum for Participants Entitled to Benefits under the
Prudential Traditional Retirement Plan.

             (a) Effective January 1, 1990, in lieu of receiving benefits at the
time and in the form set forth in Sections 5.1 and 5.2, a Participant who is
entitled, under the terms of the Retirement System, to a benefit payable under
the Prudential Traditional Retirement Plan, and who meets the requirements set
forth in paragraph (d) below, may elect to receive Plan benefits in a single sum
payment pursuant to this Section 5.3 without regard to the form of retirement
benefit payable to the Participant under the Prudential Traditional Retirement
Plan. Such election must be in writing and shall be irrevocable.

             (b) The single sum shall be paid to the Participant on such
Participant's Annuity Starting Date under the Prudential Traditional Retirement
Plan (or as soon as practicable thereafter). Effective for any election received
by the Committee on or after March 1, 1995, the single sum shall be paid to the
Participant on the later of (1) such Participant's Annuity Starting Date under
the Prudential Traditional Retirement Plan or (2) the one-year anniversary of
the date the Committee, or its designee, receives such Participant's election of
the single sum benefit (or as soon as practicable thereafter). Such single sum
benefit shall be in lieu of all benefits otherwise payable to the Participant
(and his or her beneficiary) under the Plan and no death benefit (other than the
death benefit described in Section 6.4) shall be payable under the Plan to the
Participant's beneficiary.

                                        8

<PAGE>

             (c) The amount of the single sum payment is the consideration that
would be required on the Participant's Annuity Starting Date under the
Prudential Traditional Retirement Plan pursuant to the interest and mortality
assumptions specified by the Committee for use on the actual date of the single
sum payment, to purchase all benefits otherwise payable to the Participant under
Articles II and III of the Plan in the form of a single life annuity with a
fifteen (15) year period certain for an unmarried Participant or a fifty percent
(50%) joint and survivor annuity for a married Participant.

             (d) A Participant may receive the single sum payment provided under
this Section 5.3 if and only if such Participant (1) makes the election to
receive the single sum (and the Committee, or its designee, receives such
election) prior to the date he or she terminates employment with the Controlled
Group, (2) is eligible to retire (including early retirement) under the
Prudential Traditional Retirement Plan at the time of termination of employment
with the Controlled Group, and (3) survives until the expected payment date
(such date being, as applicable, the later of: (i) the Participant's Annuity
Starting Date under the Prudential Traditional Retirement Plan; and (ii) the
one-year anniversary of the date the Committee receives the Participant's single
sum election).

             (e) If a Participant who has elected the single sum payment does
not survive until the expected payment date, Plan benefits shall be paid to the
beneficiary on the expected payment date as if the Participant had survived to
the expected payment date.

             (f) If a Participant who has elected the single sum payment is
otherwise not eligible to receive the single sum payment, Plan benefits shall be
paid to the Participant (and/or the beneficiary, as the case may be), as if the
Participant had not elected the single sum payment under this Section 5.3;
provided, however, that in the event payments have already commenced to the
Participant under the Prudential Traditional Retirement Plan but the Participant
has not yet received Plan benefits because the single sum could not be paid
until the one-year anniversary date of the single sum election (the "waiting
period"), the Participant (or the beneficiary, as the case may be) shall receive
the amount of Plan benefits that would have been paid to the Participant during
the waiting period if Plan benefits had been paid pursuant to Sections 5.1 and
5.2 above.

         5.4 Grandfathered Benefit Forms for Certain Participants. In the event
a Participant elects to receive the greater of the Participant's Grandfathered
Minimum Benefit or Subsidized Grandfathered Minimum Benefit under the Prudential
Cash Balance Plan in an annuity form described in Article XV of the Prudential
Traditional Retirement Plan, such election shall also apply (subject to Section
5.2) to the Special Early Retirement Benefit described in Article III and to
such portion of the Participant's Supplemental Benefit described in Article II
that would have constituted the Participant's Grandfathered Minimum Benefit or
Subsidized Grandfathered Minimum Benefit under the Prudential Cash Balance Plan
but for the application of the limit on compensation imposed by Code section
401(a)(17), the application of Code section 415(b), or the exclusion from
pensionable Earnings of deferrals described in Article II. Any remaining portion
of the Participant's benefit under this Plan will be payable under the same
terms that apply to the Wear-Away Protection and/or Residual Amounts under the
Prudential Cash Balance Plan.

                                        9

<PAGE>

                                   ARTICLE VI

                                 DEATH BENEFITS

         6.1 Pre-Retirement Survivor Annuity Benefits for Married Participants
Entitled to Benefits under the Prudential Traditional Retirement Plan.

             (a) Surviving Spouse Eligibility. With respect to each
Participant entitled to benefits under the Prudential Traditional Retirement
Plan, the surviving spouse of each Participant who dies prior to the
commencement of the payment of benefits under the Plan pursuant to Article V
above, who is entitled to receive qualified pre-retirement survivor annuity
benefits under the Prudential Traditional Retirement Plan, is entitled to
receive pre-retirement spouse annuity benefits under this Section 6.1(a).

                 (1) Amount. The amount of a surviving spouse's monthly
pre-retirement spouse annuity benefits shall be equal to fifty percent (50%) of
the monthly benefits that would have been payable to the Participant under the
Plan if such Participant had:

                     (i)  elected to commence receiving benefits on the day
before the Participant's death, if death occurs after the date the Participant
attained the earliest possible Early Retirement Date under the terms of the
Prudential Traditional Retirement Plan; or

                     (ii) experienced a Termination of Employment on the
Participant's date of death, survived to the Participant's earliest possible
Early Retirement Date under the terms of the Prudential Traditional Retirement
Plan, and died on the following day.

                 (2) Payment of Benefits. Benefit payments to a surviving spouse
will be paid in the same manner and at the same time that pre-retirement
survivor annuity benefits for married participants are paid under the Prudential
Traditional Retirement Plan.

             (b) Beneficiary Eligibility. If a married Participant who dies
prior to the commencement of the payment of benefits under the Plan pursuant to
Article V above elects under the Prudential Traditional Retirement Plan payment
of pre-retirement death benefits in the form of subsidized pre-retirement
fifteen (15) year period certain benefits for a beneficiary rather than in the
form of pre-retirement survivor annuity benefits for a surviving spouse, and the
beneficiary is entitled to receive such benefits under the Prudential
Traditional Retirement Plan, such beneficiary is entitled to receive
pre-retirement fifteen (15) year period certain benefits under this Section
6.1(b).

                 (1) Amount. The amount of a beneficiary's monthly
pre-retirement fifteen (15) year period certain benefit shall be the same amount
that would have been payable to the beneficiary under the Plan under a
subsidized post-retirement fifteen (15) year period certain optional form of
benefit if the Participant had elected to commence receiving benefits in such
form on the date of the Participant's death.

                 (2) Payment of Benefits. Benefit payments to a beneficiary will
be paid in the same manner and at the same time that pre-retirement fifteen (15)
year period certain benefits are paid under the Prudential Traditional
Retirement Plan.

         6.2 Pre-Retirement Period Certain Benefits for Unmarried Participants
Entitled to Benefits under the Prudential Traditional Retirement Plan. With
respect to each Participant entitled to benefits under the Prudential
Traditional Retirement Plan, if each Participant elects, or is deemed to have
elected, subsidized pre-retirement fifteen (15) year period certain benefits for
unmarried participants under the Prudential Traditional Retirement Plan, that
same election shall

                                       10

<PAGE>

apply with respect to benefits accrued under the Plan. The amount of a
beneficiary's monthly pre-retirement fifteen (15) year period certain benefit
for unmarried Participants shall be the same amount that would have been payable
to the beneficiary under the Plan under a subsidized post-retirement fifteen
(15) year period certain form of benefit if the Participant had elected to
commence receiving benefits in such form on the date of the Participant's death.
Benefit payments to a beneficiary will be paid in the same manner, and at the
same time, that pre-retirement fifteen (15) year period certain benefits for
unmarried participants are paid under the Prudential Traditional Retirement
Plan.

         6.3 Pre-Retirement Death Benefits for Participants Entitled to Benefits
under the Prudential Cash Balance Plan. With respect to each Participant
entitled to benefits under the Prudential Cash Balance Plan, the surviving
spouse or beneficiary of each Participant (who dies prior to the commencement of
the payment of benefits under the Plan pursuant to Article V above) who is
entitled as surviving spouse or beneficiary under the Prudential Cash Balance
Plan to receive pre-retirement death benefits under Section 6.2 of the
Prudential Cash Balance Plan, is entitled to receive pre-retirement death
benefits under this Section 6.3

             (a) Amount. The amount of a surviving spouse's or beneficiary's
pre-retirement death benefit shall be equal to a single life annuity that is the
Actuarial Equivalent (as defined in the Prudential Cash Balance Plan) of the
Participant's Supplemental Benefits set out in Article II.

             (b) Payment of Benefits. Benefit payments to a surviving spouse or
beneficiary will be paid in the same manner (including in the form of a lump
sum) and at the same time that pre-retirement death benefits are paid under
Section 6.2 of the Prudential Cash Balance Plan.

         6.4 Additional Death Benefit. If a Participant: (a) who is in service
with an Employer prior to 1970; (b) who is eligible to receive Special Early
Retirement Benefits; and (c) dies on or after the first day of the month
following such Participant's attainment of age sixty-five (65) and (1) while in
Employer service or (2) after having retired directly from Employer service, a
single sum death benefit shall be payable as of the date of such Participant's
death (in addition to any other death benefits payable under the Plan). The
single sum death benefit payable under this paragraph shall be equal to the
amount of one year's payments of the portion of such Special Early Retirement
Benefits accrued prior to 1970 payable in the form of a single life annuity
(without regards to the manner in which Special Early Retirement Benefits are
actually paid to a Participant). The single sum death benefit shall be payable
as of the date of such Participant's death to a beneficiary or beneficiaries
designated by the Participant, if any, or otherwise to the Participant's estate.
By proper written request to the Company, in accordance with established rules,
a Participant may designate one or more beneficiaries, and may change any
beneficiary previously designated.

                                       11

<PAGE>

                                   ARTICLE VII

                        AD HOC COST OF LIVING ADJUSTMENTS

         7.1 September 1, 1996 Cost of Living Adjustment.

             (a) Subject to paragraph (b) below, the cost of living adjustment
granted on September 1, 1996 to certain Participants (as defined in the
Retirement System), spouses, and beneficiaries shall be provided under this Plan
to the extent such cost of living adjustment cannot be paid under the Retirement
System by reason of Code section 401(a)(17) or 415 (as reflected in the
applicable provisions of the Retirement System). Such cost of living adjustment
shall be provided in the same form and at the same time as the cost of living
adjustment provided under the Retirement System.

             (b) In the event a Participant who is eligible for the cost of
living adjustment granted on September 1, 1996 under the Retirement System
elects to receive a single sum distribution under this Plan, such Participant
shall not receive a cost of living adjustment under this Section 7.1. Likewise,
in the event a spouse or beneficiary who is eligible for the cost of living
adjustment granted on September 1, 1996 under the Retirement System is the
spouse or beneficiary of a Participant who elected to receive a single sum
distribution under this Plan, such spouse or beneficiary shall not receive a
cost of living adjustment under this Section 7.1.

                                       12

<PAGE>

                                  ARTICLE VIII

                           ADMINISTRATION OF THE PLAN

         8.1 Administration of the Plan.

             (a) The Plan shall be administered by the Committee. The Committee
shall maintain such procedures and records as will enable the Committee to
determine the Participants and their beneficiaries who are entitled to receive
benefits under the Plan and the amounts thereof.

             (b) The head of the Human Resources Department of the Company may,
in his or her sole discretion, exercise the authority of the Committee and act
as the Committee in administering the Plan.

         8.2 General Powers of Administration.

             (a) The Committee shall have the exclusive right, power and
authority to interpret, in its sole discretion, any and all of the provisions of
the Plan; and to consider and decide conclusively any questions (whether of fact
or otherwise) arising in connection with the administration of the Plan or any
claim for benefits arising under the Plan. Any decision or action of the
Committee shall be conclusive and binding.

             (b) Provisions set forth in the Retirement System with respect to
claims and appeals procedures, and immunities of the Committee (as defined in
the Retirement System) shall also be applicable with respect to the Plan.

                                       13

<PAGE>

                                   ARTICLE IX

                            AMENDMENT AND TERMINATION

         9.1 Change or Termination of the Plan.

             (a) The Company reserves the right to amend or terminate the Plan
in any respect and at any time and may do so pursuant to a written resolution of
the Compensation Committee of the Board of Directors. Prior to August 12, 1997,
such amendment or termination may include, without limitation, discontinuing
payments to Participants (and beneficiaries) who have, prior to the time of
amendment or termination, received such payments; provided, however, that no
amendment or termination of the Plan may adversely affect (1) the rights of any
spouse who, before the effective date of such amendment or termination, has
commenced receiving pre-retirement spouse annuity benefits under Section 6.1 or
(2) the accrued benefit of any Participant, or beneficiary to benefits that are
vested pursuant to Section 9.1(c) below.

             Effective August 12, 1997, no amendment or termination of the Plan
shall have the effect of reducing a Participant's accrued benefit under the Plan
or vesting status under the Plan as in effect immediately prior to the adoption
of such amendment or termination of the Plan (or, if later, the effective date
of such amendment or termination of the plan); provided, however, that the
Company reserves the right to amend or change any optional forms of benefit
provided under the Plan in any respect and at any time.

             (b) The head of the Human Resources Department of the Company may
adopt minor amendments to the Plan without approval by the Compensation
Committee of the Board of Directors that (1) are necessary or advisable for
purposes of compliance with applicable laws and regulations, (2) relate to
administrative practices, or (3) have an insubstantial financial effect on Plan
benefits and expenses.

             (c) Each Participant in service on or after January 1, 1994 (or
beneficiary of such Participant) shall be fully vested in benefits accrued prior
to January 1, 1994 under the Plan or under one or more of the Prior Programs.

                                       14

<PAGE>

                                    ARTICLE X

                               GENERAL PROVISIONS

         10.1 Participant's Rights Unsecured and Unfunded. The Plan at all times
shall be entirely unfunded. No assets of the Company or any other Participating
Affiliated Company shall be segregated or earmarked to represent the liability
for accrued benefits under the Plan. The right of a Participant (or his or her
beneficiary) to receive a payment hereunder shall be an unsecured claim against
the general assets of the Company. All payments under the Plan shall be made
from the general assets of the Company.

         10.2 Transfer of Obligations. Effective December 10, 1996, by written
action of the Chief Financial Officer of the Company as memorialized in an
officer's certificate, the Company may transfer and thereby be released from its
primary liability for all or part of its payment obligations under the Plan,
provided that the transferee is an affiliate of the Company, the Company and the
transferee enter into a written agreement with respect to the transfer and
assumption of liabilities, and the rights of the employees to receive their
benefits under the Plan are not impaired as a result of the transfer and
assumption of liabilities under and in accordance with the transfer and
assumption agreement.

         10.3 No Guarantee of Benefits. Nothing contained in the Plan shall
constitute a guaranty by the Employer or any other person or entity that the
assets of the Company will be sufficient to pay any benefit hereunder.

         10.4 No Enlargement of Employee Rights.  Participation in the Plan
shall not be construed to give any Participant the right to be retained in the
service of any Employer.

         10.5 Non-Alienation Provision. No interest of any person or entity in,
or right to receive a benefit or distribution under, the Plan shall be subject
in any manner to sale, transfer, assignment, pledge, attachment, garnishment, or
other alienation or encumbrance of any kind; nor may such interest or right to
receive a distribution be taken, either voluntarily or involuntarily for the
satisfaction of the debts of, or other obligations or claims against, such
person or entity, including claims for alimony, support, separate maintenance
and claims in bankruptcy proceedings.

         10.6 Applicable Law. The Plan shall be construed and administered under
the laws of the State of New Jersey, except to the extent that such laws are
preempted by ERISA.

         10.7 Taxes. To the extent required by law, amounts accrued under the
Plan shall be subject to federal and state income, federal social security and
federal or state unemployment taxes during the year the services giving rise to
such amounts were performed (or, if later, when the amounts are both
determinable and not subject to a substantial risk of forfeiture). The Company,
the Employer or the Participating Subsidiary (as applicable) shall withhold from
any payments made pursuant to the Plan such amounts as may be required by
federal, state or local law, and the Company, the Employer or the Participating
Subsidiary (as applicable) further reserves the right: (a) to limit or reduce
the amounts intended to be deferred under the terms of the Plan as may be
necessary or appropriate in order to ensure that any required tax withholdings
can be deducted; and/or (b) to require the Participant to pay any taxes owed on
such amounts through personal check or payroll deduction.

         10.8 Excess Payments. If the compensation, years of service, age, or
any other relevant fact relating to any person is found to have been misstated,
the Plan benefit payable by the Company to a Participant or Beneficiary shall be
the Plan benefit which would have been provided on the basis of the correct
information. Any excess payments due to such misstatement,

                                       15

<PAGE>

or due to any other mistake of fact or law, shall be refunded to the Company or
withheld by it from any further amounts otherwise payable under the Plan.

         10.9  No Impact on Other Benefits. Amounts accrued or paid under the
Plan shall not be included in a Participant's compensation for purposes of
calculating benefits under any other plan, program or arrangement sponsored by
the Employer or Participating Subsidiary, unless such plan, program or
arrangement expressly provides that amounts accrued or paid under the Plan shall
be included.

         10.10 Data. Each Participant or beneficiary shall furnish the Committee
with all proofs of dates of birth and death and proofs of continued existence
necessary for the administration of the Plan, and the Company shall not be
liable for the fulfillment of any Plan benefits in any way dependent upon such
information unless and until the same shall have been received by the Committee,
or its designee, in a form satisfactory to it.

         10.11 Incapacity of Recipient. If a Participant or other beneficiary
entitled to a distribution under the Plan is living under guardianship or
conservatorship, distributions payable under the terms of the Plan to such
Participant or Beneficiary shall be paid to his or her appointed guardian or
conservator and such payment shall be a complete discharge of any liability of
the Company under the Plan.

         10.12 Usage of Terms and Headings. Words in the masculine gender shall
include the feminine and the singular shall include the plural, and vice versa,
unless qualified by the context. Any headings are included for ease of reference
only, and are not to be construed to alter the terms of the Plan.

         IN WITNESS WHEREOF, The Prudential Insurance Company of America has
caused this restatement to be executed as of December 12, 2001, effective
January 1, 2001, except as otherwise provided herein.

                                            THE PRUDENTIAL INSURANCE
                                            COMPANY OF AMERICA

                                            By: /s/ Michele S. Darling
                                               ---------------------------------
                                                     Michele S. Darling
                                                     Executive Vice President

                                       16

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