Document:

Filed by Bowne Pure Compliance

 

Exhibit 10.24

TENTH AMENDMENT TO THE

EXTANT, INC. 401(k) PLAN

WHEREAS, Dynegy Inc., a Delaware corporation (“Dynegy”), maintains the Extant, Inc.
401(k) Plan (the “Extant Plan”) for the benefit of the certain eligible employees;

WHEREAS,
Dynegy also maintains the Dynegy Inc. 401(k) Savings Plan (the “Plan”) for
the benefit of certain other of its eligible employees;

WHEREAS,
Dynegy and its delegates are authorized and empowered to amend the Extant
Plan pursuant to Section 14.1 of the Extant Plan, and to merge the Extant Plan in
accordance with Section 15.3 of the Extant Plan;

WHEREAS, Dynegy and its delegates are authorized and empowered to amend the Plan
pursuant to Section 16.1 of the Plan; and

WHEREAS, Dynegy now desires to effect a merger of the Extant Plan into the Plan,
effective as of April 1, 2008.

NOW,
THEREFORE, the Extant Plan is amended, effective April 1, 2008, to merge it with
the Plan.

* * *

IN WITNESS WHEREOF, the undersigned has caused this Tenth Amendment to the Extant Plan to
be executed on the date indicated below, to be effective as provided above.

	 	 	 	 	 	 	 
	 	 	DYNEGY INC.,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Title:
	 	/s/ Julius Cox
 

Chairman of the BPC
	 	 
	 

	 	Date:
	 	March 31, 2008Filed by Bowne Pure Compliance

 

Exhibit 10.25

TENTH AMENDMENT TO THE

DYNEGY INC. RETIREMENT PLAN

WHEREAS, Dynegy Inc., a Delaware corporation (the “Company”), maintains the Dynegy Inc.
Retirement Plan (the “Plan”) for the benefit of eligible employees of certain participating
companies;

WHEREAS, Illinois Power Company (“IPC”), a prior sponsor of the Plan, added Appendix C to the
Plan to establish a retiree medical benefits account for eligible
retirees (the “401 (h)
Account”);

WHEREAS, in connection with the Company’s sale of IPC to Ameren Corporation (“Ameren”),
Ameren agreed to cause the Ameren Retirement Plan (the “Ameren Plan”) to assume the Plan benefit
liabilities of certain active and former employees, and as a result, Dynegy Inc., an Illinois
corporation (the former “Company” under the Plan), during 2004 and 2005, caused the transfer of
certain Plan assets and the remaining assets of the 401(h) Account to the Ameren Plan, which
assets were related to such assumed benefit liabilities; and

WHEREAS, the Company has the right to terminate the provisions of Appendix C pursuant to
Section C-12 thereof, and now desires to terminate such provisions;

NOW, THEREFORE, BE IT RESOLVED that the Plan shall be, and hereby is amended as follows,
effective 
January 1, 2007:

I.

Appendix C of the Plan is hereby deleted in its entirety.

II.

Except as modified herein, the Plan shall remain in full force and effect.

IN WITNESS WHEREOF, the undersigned has caused this Amendment to the Plan to be executed this
11th day of May, 2007, effective as hereinabove provided.

	 	 	 	 	 	 	 
	 	 	DYNEGY INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Julius Cox
 

Julius Cox, Chairman
	 	 
	 

	 	 	 	Dynegy Inc. Benefit Plans CommitteeFiled by Bowne Pure Compliance

 

Exhibit 10.26

ELEVENTH AMENDMENT

TO THE

DYNEGY INC. RETIREMENT PLAN

This Eleventh Amendment to the Dynegy Inc. Retirement Plan is made and entered into by Dynegy
Inc., a Delaware corporation (the ‘Company’) this 4th day of December, 2007, effective
as of December 31, 2007.

WITNESSETH:

WHEREAS, the Company has previously adopted the Dynegy Inc. Retirement Plan, restated as of
December 1, 2001 and as subsequently amended (the ‘Plan’); and

WHEREAS, the Company and its delegates is authorized and empowered to amend the Plan pursuant
to Section 15.1 of the Plan; and

WHEREAS, the Company desires to effect a merger of the Dynegy Midwest Generation, Inc.
Retirement Income Plan for Employees Covered Under a Collective Bargaining Agreement (‘DMG Plan’)
into the Plan as of December 31, 2007, with the Plan surviving and containing the operative
provisions of the DMG Plan and applying the administrative provisions of the Plan; and

NOW,
THEREFORE, the Plan is hereby amended as of December 31, 2007 as follows:

I.

A
new Appendix F is added to the Plan as follows:

 

 

 

“Appendix F

To

Dynegy Inc. Retirement Plan

Merger of DMG Plan

Effective December 31, 2007, the Dynegy Midwest Generation, Inc. Retirement Income Plan for
Employees Covered Under a Collective Bargaining Agreement (‘DMG Plan’) is merged into the Dynegy
Inc. Retirement Plan, with the benefit structure and related provisions of the DMG Plan continued
as a separate benefit structure and related provisions under the Plan, through the incorporation of
the DMG Plan as modified by the provisions of this Appendix F. Except as otherwise provided in this
Appendix F, the provisions of the DMG Plan are incorporated herein by reference in their entirety
to the extent necessary to provide the benefit structure and preserve the protected benefits,
rights and features of the DMG Plan for each Participant covered under the DMG Plan (“DMG
Participant”) pursuant to this Appendix F. Only the provisions incorporated herein by reference
from the DMG Plan and the provisions of this Appendix F shall be applicable to determine the
benefits, rights and features preserved and newly created for DMG Participants upon the merger of
the DMG Plan into the Plan. The provisions of Articles I, II, III,
VIII (with respect to benefit
limitations of Sections 8.9 and 8.10, rollover provisions of
Section 8.8 and the claims procedures
provisions of Section 8.17), IX, X, XI, XII, XIII, XIV, XV, XVI, XVII and XVIII of the Plan
concerning plan administration, limitations on benefits, fiduciary provisions, amendment and
termination authority, top-heavy status and trust fund and trustee matters shall be fully
applicable upon the merger of the DMG Plan into the Plan without regard to provisions concerning
similar matters in the DMG Plan; however, the provisions of the Plan,
such as Article IV, V, VI,
VII VIII (with the exception of benefit limitations of Sections 8.9 and 8.10, the rollover
provisions of Section 8.8 and the claims procedures provisions of Section 8.17) and Appendices A,
B, C, D and E shall not apply to a DMG Participant to the extent such provisions of the Plan or
Appendices are in conflict with or duplicative of similar provisions set forth in the DMG Plan and
this Appendix F.

 

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I. DEFINITIONS AND CONSTRUCTION

1.1 Definitions. Where the following words and phrases appear in the DMG Plan Appendix
below, they shall have the respective meanings set forth below, unless their context clearly
indicates to the contrary, and shall supersede any similar or inconsistent terms that appear in
the body of the Plan or the DMG Plan that would otherwise be
applicable to a DMG Participant.
Section references in this Appendix F are the same as under the DMG Plan, except as otherwise
noted.

(1) Accrued Benefit. The benefit determined under the DMG Plan expressed
in the form of a Pension commencing as of Normal Retirement Date.

(2) Accumulation: The sum of the contributions, if any, made by a DMG
Participant under the DMG Plan, plus any interest credited thereon, Which
contributions and interest have not previously been withdrawn by the DMG
Participant. Interest will be credited on a DMG Participant’s contributions,
compounded annually, at the rate of 2% per annum prior to July 1, 1970, 3% per
annum from July 1, 1970 through December 31, 1975, 5% per annum from
January 1, 1976 through December 31, 1981, 7% per annum from January 1,
1982 through December 31, 1987, and, for each Plan Year thereafter, the greater
of (i) 7% per annum or (ii) 120% of the Federal mid-term rate (as in effect under
section 1274 of the Code for the first month of such Plan Year) per annum for
such Plan Year. Effective January 1, 1973, interest will be credited from the
January 1 next following the date on which each contribution was made under
the Plan to the first day of the month of the first to occur of (a) the DMG
Participant’s Retirement, (b) the DMG Participant’s date of death, or (c) the date
the DMG Participant elects the return of his Accumulation as provided in
Appendix F Section 7.13.

(3) Act. The Employee Retirement Income Security Act of 1974, as
amended.

(4) Actuarial Equivalent. Equality in value of the aggregate amounts expected
to be received under different times and forms of payment based upon a 7% per
annum interest rate assumption (or, if lower, the interest rate specified by the
Pension Benefit Guaranty Corporation (the ‘PBGC’) to be used to determine the
amount of lump sum benefits paid by the PBGC under plans the PBGC trustees)
and mortality rate assumptions determined under the 86 PET - 88.70 mortality
table (a table prepared by the Wyatt Company, based on experience underlying
the 1971 Group Annuity Mortality Table, without margins, with a projection of
mortality improvement to 1986 and weighting the mortality 88.7% male and
11.3% female); provided, however, that in determining the amount of a lump sum
payment or level income option, the Applicable Mortality Table and the
Applicable Interest Rate shall be utilized. Notwithstanding the foregoing, the
amount payable under the level income option in accordance with the preceding
sentence shall be no less than the level income option amount determined using
an interest rate of 7% per annum and the 86 PET-88.70 mortality table based on
the DMG Participant’s Accrued Benefit as of May 31, 2005 and the DMG Participant’s age as of his
Annuity Starting Date.

 

3

 

(5) Amergen Affiliate: Any affiliate of Amergen within its controlled group of
corporations or a controlled group of trades or businesses, as defined in sections
414(b) and 414(c), respectively, of the Code.

(6) Annuity Starting Date. Subject to the modifications under certain
circumstances described in Appendix F Sections 7.1 and 7.2, with respect to
each DMG Participant or beneficiary, the first day of the first period for which an
amount is payable to the DMG Participant or beneficiary from the Fund as an
annuity or in any other applicable form available under the terms of the DMG
Plan.

(7) Applicable Interest Rate. The annual rate of interest on 30-year Treasury
securities for the look-back month preceding the first day of the stability period.
For purposes of this Paragraph, the ‘look-back month’ shall be the fifth month
preceding the first day of the stability period, and the ‘stability period’ shall be the
Plan Year that contains the Annuity Starting Date with respect to the benefit.
Notwithstanding the foregoing, the Applicable Interest Rate that applies with
respect to any distribution for which the Annuity Starting Date occurs during the
transition period shall be the annual rate of interest on 30-year Treasury
securities determined for either (A) the month provided in the preceding
provisions of this Appendix F Section 1.1(7) or (B) the month that contains the
Annuity Starting Date, whichever results in the larger distribution. For purposes
of the preceding sentence, the ‘transition period’ was the period beginning on
December 1, 2001 and ending on November 30, 2002. Further notwithstanding
the foregoing, the Applicable Interest Rate that applies with respect to any
distribution in the form of a level income option for which the Annuity Starting
Date occurs during the transition period shall be the annual rate of interest on
30-year Treasury securities determined for either (i) the month provided in the
first two sentences of this Appendix F Section 1.1(7) or (ii) the month that
contains the Annuity Starting Date, whichever results in the larger distribution.
For purposes of the preceding sentence, the ‘transition period’ shall be the period
beginning on June 1, 2005 and ending on May 31, 2006.

(8) Applicable Mortality Table. The mortality table prescribed by the Secretary of the
Treasury pursuant to section 417(e)(3)(A)(ii)(1) of the Code.

(9) Career Benefit Credit. The sum of the DMG Participant’s Payroll Period Benefit
Credits determined pursuant to Appendix F Section 4.1(a).

(16A) DMG Participant. (No DMG Plan reference) A person who on December 31, 2007 had an
Accrued Benefit under the DMG Plan or was receiving a benefit under the DMG Plan and, on such date,
became a DMG Participant under the Plan pursuant to the merger of the DMG Plan into the Plan and
the provisions of this Appendix F, and each individual who has met the eligibility requirements for
participation as set forth in Article III of the DMG Plan or
Appendix F Article III of the Plan.

 

4

 

(16B)
DMG Plan. (DMG Plan reference – Section 1.1(38)) Dynegy Midwest Generation, Inc.
Retirement Income Plan for Employees Covered under a Collective Bargaining Agreement, as in effect
as of December 31, 2007.

(17) Early Retirement Age. The date upon which a DMG Participant attains fifty-five years
of age.

(17A) Early Retirement Date. The first day of the month coincident with or next following
the DMG Participant’s attainment of his Early Retirement Age.

(19) Eligible Employee. Each Employee employed as a member of a group to
whom the DMG Plan and, after December 31, 2007, this Appendix F of the Plan,
have been and continue to be extended through a currently effective collective
bargaining agreement between his Employer and the collective bargaining
representative of the group of employees of which he is a member; provided,
however, that the term ‘Eligible Employee’ shall not include (A) a nonresident
alien who receives no earned income from the Employer that constitutes income
from sources within the United States, (B) a Leased Employee, (C) an individual
who is deemed to be an Employee pursuant to Treasury regulations issued
under section 414(o) of the Code, and (D) an Employee who has waived
participation in the Plan, or, prior to January 1, 2008, the DMG Plan through any
means including, but not limited to, an Employee whose employment is governed
by a written agreement with the Employer (including an offer letter setting forth
the terms and conditions of employment) that provides that the Employee is not
eligible to participate In the Plan (a general statement in the agreement, offer
letter, or other communication stating that the Employee is not eligible for
benefits shall be construed to mean that the Employee is not an Eligible
Employee). Notwithstanding any provision in the Plan to the contrary, no
individual who is designated, compensated, or otherwise classified or treated by
the Employer as an independent contractor or other non-common law employee
shall be eligible to become a DMG Participant in the Plan. It is expressly
intended that individuals not treated as common law employees by the Employer
are to be excluded from Plan participation even if a court or administrative
agency determines that such individuals are common law employees.

(20) Eligible Retirement Plan. [See Section 1.1(24) of the Dynegy Inc.
Retirement Plan for application to DMG Participants.]

(21) Eligible Rollover Distribution. [See Section 1.1(25) of the Dynegy Inc.
Retirement Plan for application to DMG Participants.]

(24) Employer. Each entity that has been designated to participate in the DMG Plan
pursuant to the provisions of Article XIV. The Company is not an Employer. As of January 1, 2008,
Dynegy Midwest Generation, Inc. is an Employer.

(26) Employment Year. With respect to each DMG Participant, a twelve consecutive month
period beginning on the DMG Participant’s Employment Commencement Date and any anniversary thereof
or, in the event of a termination of employment that results in any One-Year Break-in-Service, the
first date upon which he performs an Hour of Service following such One-Year Break-in-Service and
any anniversary thereof

 

5

 

(28) Fund. The fund established pursuant to Section 12.1 of the Plan to hold and invest
DMG Plan assets and from which the Plan benefits are distributed. When there is more than one
Fund, the term ‘Fund’ shall refer to all such Funds.

(30) Hour of Service. Each hour for which an individual is directly or indirectly paid, or
entitled to payment, by the Employer or a Controlled Entity as an Employee for the performance of
duties or for reasons other than the performance of duties; provided, however, that an individual
shall be credited with Hours of Service equal to the number of regularly scheduled working hours
that normally would have been credited to him, or, if the number of such hours is not determinable,
eight Hours of Service per day (to a maximum of 40 Hours of Service per week) for any period during
which he performs no duties for an Employer or a Controlled Entity (irrespective of whether the
employment relationship has terminated) by reason of a vacation, holiday, illness, incapacity
(including disability), layoff, jury duty, military duty or leave of absence; and provided further
that payments considered for purposes of the foregoing shall include payments unrelated to the
length of the period during which no duties are performed but shall not include payments made
solely for the purpose of complying with applicable worker’s compensation, unemployment
compensation or disability insurance laws; and provided further, however, that no more than 501
Hours of Service shall be credited to an individual on account of any continuous period during
which he performs no duties. Such Hours of Service shall be credited to the individual for the
computation period in which such duties were performed or in which occurred the period during which
no duties were performed. An Hour of Service also includes each hour, not credited above, for which
back pay, irrespective of mitigation of damages, has been either awarded or agreed to by the
Employer or a Controlled Entity. These Hours of Service shall be credited to the individual for the
computation period to which the award or agreement pertains rather than the computation period in
which the award, agreement, or payment is made. The number of Hours of Service to be credited to an
individual for any computation period shall be governed by 29 CFR §§ 2530.200b-2(b) and (c). Hours
of Service shall also include any hours required to be credited by federal law other than the Act
or the Code, but only under the conditions and to the extent so required by such federal law.
Further, an Individual’s Hours of Service shall also include any hours required to be credited under
section 414(n) of the Code and the applicable interpretative authority thereunder while such
individual was a Leased Employee (or would have been a Leased Employee but for the requirements of
clause (A) of the definition of such term set forth in Section 1.1(37) of the Plan). In the case of
an individual who is paid for reasons other than the performance of duties and whose payment made
or due is calculated on the basis of units of time, such individual shall be credited with the
number of regularly scheduled working hours included in the units of time on the basis of which the
payment is calculated.

 

6

 

In
general, for purposes of determining Hours of Service with respect to an individual who is employed other than on an hourly-rated basis, such individual shall be credited
with Hours of Service under the 190 hour equivalency provisions of Department of Labor Regulation
§2530.200b-3 pursuant to which an individual who is credited with one Hour of Service for
performance of duties in a month shall be credited with 190 Hours of Service for such month;
provided, however, with respect to a DMG Participant with 3 or more Employment Years as of June 1,
2005, such DMG Participant shall be credited, beginning with the month in which the 190 hour
equivalency provisions are first applicable, with the better of the Hours of Service calculated
applying (i) such 190 hour equivalency provisions or (ii) 10 Hours of Service for each day for
which the individual would, if hourly records were maintained, be required to be credited with at
least one Hour of Service for the performance of duties; provided, further, however, if such
individual is paid for periods during which no duties are performed, such individual shall be
credited with (i) the number of regularly scheduled working hours included in the units of time
normally assigned to such duties, if payment for such duties is
calculated on units of time or (ii)
eight Hours of Service per day (to a maximum of 40 Hours of Service per week) if the individual
does not have a regular work schedule for each day the individual is paid on other than an
hourly-rated basis. Notwithstanding the foregoing provisions of this Appendix F Section 1.1(30),
an individual who is absent from work on account of an injury or disability sustained in the course
of employment with the Employer or a Controlled Entity and with respect to which he receives
worker’s compensation benefits shall be credited with 40 Hours of Service per calendar week during
the period he would normally have been scheduled to work for an Employer or Controlled Entity
during his period of absence. In no event shall Hours of Service include any period of service with
a corporation or other entity prior to the date it became a Controlled Entity or after it ceases to
be a Controlled Entity except to the extent required by law, or to the extent determined by the
Committee. The Committee, in its discretion, may credit individuals with Hours of Service based on
employment with an entity other than the Employer, but only if and when such individual becomes an
Eligible Employee and only If such crediting of Hours of Service (A) has a legitimate business
reason, (B) does not by design or operation discriminate significantly in favor of ‘highly
compensated employees’ (as such term is defined in section 414(q) of the Code), and (C) is applied
to all similarly-situated Eligible Employees. In addition, the Committee, in its discretion, may
credit individuals with Hours of Service based on imputed service for periods after such individual
has commenced participation in the Plan while such individual is not performing service for the
Employer or while such individual is an Employee with a reduced work schedule, but only if (i) such
service would not otherwise be credited as Hours of Service, (ii) such crediting of Hours of
Service (A) has a legitimate business reason, (B) does not by design or operation discriminate
significantly in favor of ‘highly compensated employees’ (as such term is defined in section 414(q)
of the Code), and (C) is applied to all similarly situated
employees, and (iii) the individual has not permanently ceased to perform service as an Employee,
provided that the preceding clause (iii) of this sentence shall not apply if (x) the individual is
not performing service for the Employer because of a disability, (y) the Individual is performing service for another employer
under an arrangement that provides some ongoing business benefit to the Employer, or (z) for
purposes of vesting and accrual, the individual is performing service for another employer that is
being treated under the Plan as actual service with the Employer.

 

7

 

(31) Hypothetical Accumulation. The sum of the contributions, if any, made by the DMG
Participant under the DMG Plan, plus any interest credited thereon, which contributions and
interest have not previously been withdrawn by the DMG Participant. For purposes of calculating a
DMG Participant’s Hypothetical Accumulation, interest will be credited on DMG Participant’s
contributions, compounded annually, at the rate of 2% per annum prior to July 1, 1970, 3% per
annum, from July 1, 1970 through December 31, 1975, 5% per annum from January 1, 1976 through
December 31, 1981, 7% per annum from January 1, 1982 through December 31, 1987, 120% of the
Federal mid-term rate (as in effect under section 1274 of the Code for the first month of a Plan
Year) per annum from January 1, 1988 until the date of the DMG Participant’s withdrawal of his
Accumulation pursuant to Appendix F Section 7.13 (the ‘Withdrawal Date’), and, for the period, if
any, beginning on the Withdrawal Date and ending on his Normal Retirement Date, the Applicable
Interest Rate per annum in effect from time to time during such period.

(33A) Plan Records. (no DMG Plan reference) The information concerning all pertinent
matters pertaining to determining the Accrued Benefit, rights, entitlements and Pension of each
DMG Participant, Eligible Surviving Spouse, alternate payee and beneficiary under the terms of the
DMG Plan, as modified by this Appendix F, as set forth in specific records maintained for all such
matters at the direction of the Committee. The Committee’s decision, in its sole discretion, with
respect to any and all matters set forth in the Plan Records shall be conclusive and binding on
all persons for all purposes.

(34) Normal
Retirement Age. The date upon which a DMG Participant attains sixty-five years
of age.

(34A)
Normal Retirement Date. The first day of the month coincident with or next following
the DMG Participant’s attainment of his Normal Retirement Age.

(35) One-Year
Break-in-Service. Any Employment Year during which an individual has less
than 501 Hours of Service. Solely for purposes of determining whether a One-Year Break-in-Service
has occurred, an Hour of Service shall include each normal work hour, not otherwise
credited in Appendix F Section 1.1(30), during which an individual is absent from work by
reason of the individual’s pregnancy, the birth of a child of the individual, the placement of a
child with the individual in connection with the adoption of such child by the individual, or for
purposes of caring for such child for the period immediately following such birth or placement. The
Committee may in its discretion require, as a condition to the crediting of Hours of Service under
the preceding sentence, that the individual furnish appropriate and timely information to the
Committee establishing the reason for any such absence. Such Hours of Service shall be
credited to the individual for the computation period in which the absence from work begins if
such crediting is necessary to prevent the occurrence of a One-Year Break-in-Service in such
computation period; otherwise such Hours of Service shall be credited to the individual in the
next following computation period.

 

8

 

(36) Participation Service. The measure of service used in determining an Employee’s
eligibility to participate in the DMG Plan as determined pursuant to Appendix F Section 3.2.

(37) Pension. With respect to a DMG Participant entitled to receive benefits under the DMG
Plan, a series of monthly payments for the life of the DMG Participant.

(38) Plan. Prior to January 1, 2008, ‘Plan’ means the Dynegy Midwest Generation, Inc.
Retirement Income Plan for Employees Covered Under a Collective Bargaining Agreement, as amended
from time to time. From and after January 1, 2008, see Appendix F Section 1.1(16B) for DMG
Participants. From and after January 1, 2008, ‘Plan’ means the Salaried Plan to the extent
applicable.

(41) Retirement. With
respect to each DMG Participant, termination of his employment with
the Employer on or after his Early Retirement Date or Normal Retirement Date.

(42) Salaried Plan. The Dynegy Inc. Retirement Plan, as amended from time to time.

(43) Vested Interest. The percentage of a DMG Participant’s Accrued Benefit which, pursuant
to the DMG Plan and this Appendix F, is nonforfeitable.

(44) Vesting
Service. The measure of service used in determining a DMG Participant’s nonforfeitable
right to a benefit as determined in accordance with Appendix F Section 5.3.

1.2 Number and Gender. Wherever appropriate herein, words used in the singular shall
be considered to include the plural and words used in the plural shall be considered to include
the singular. The masculine gender, where appearing in the DMG Plan, shall be deemed to include
the feminine gender.

1.3 Headings. The headings of Articles and Sections herein are included solely for
convenience, and, if there is any conflict between such headings and
the text of the DMG Plan, the
text of the DMG Plan shall control.

1.4 Construction. It is intended that the DMG Plan be qualified within the meaning of
section 401(a) of the Code and that the Fund be tax exempt under section 501(a) of the Code, and
all provisions herein shall be construed in accordance with such intent.

 

9

 

II. Special Provisions Applicable to DMG Participants

This Appendix F and the provisions of the DMG Plan incorporated herein by reference and as
modified by this Appendix F are applicable only to eligible DMG Participants. If there is any
conflict between the provisions which appear in the Plan and the provisions of this Appendix F and
the DMG Plan, the provisions of this Appendix F and the DMG Plan shall control. All provisions
which appear in the Plan, including any other applicable Appendix, shall apply to DMG Participants
in the same manner as applicable to other Participants except insofar as they may be inconsistent
with or in conflict with the provisions of this Appendix F and the provisions of the DMG Plan
incorporated herein by reference and as modified by this Appendix F.

III. PARTICIPATION

3.1 Eligibility. Each Eligible Employee shall become a DMG Participant upon the Entry Date
coincident with or next following the date on which such Eligible Employee has completed one year
of Participation Service. Notwithstanding the foregoing:

(a) An Eligible Employee who was a DMG Participant as of December 31, 2007 shall remain a
DMG Participant as of January 1, 2008;

(b) An Eligible Employee who was a Participant in the DMG Plan prior to a termination of
employment shall remain a DMG Participant upon his reemployment as an Eligible Employee;

(c) An Employee who has completed one year of Participation Service but who has not become
a Participant in the DMG Plan because he was not an Eligible Employee shall become a DMG
Participant in the Plan and this Appendix F from and after January 1, 2008 upon the later
of (i) the date he becomes an Eligible Employee as a result of a change in his employment
status or (ii) the first Entry Date upon which he would have become a DMG Participant if he
had been an Eligible Employee;

(d) An Eligible Employee who had met the service requirements of this Appendix F Section
3.1 to become a DMG Participant in the DMG Plan but who terminated employment prior to the
Entry Date upon which he would have become a DMG Participant shall become a DMG Participant
upon the later of (i) the date of his reemployment or (ii) the Entry date upon which he
would have become a DMG Participant if he had not terminated employment; and

(e) Except as otherwise provided in the Plan, a DMG Participant who ceases to be an
Eligible Employee but remains an Employee shall continue to be a DMG Participant but, on
and after the date he ceases to be an Eligible Employee, he shall no longer accrue
additional benefits under this Appendix F unless and until he shall again become an
Eligible Employee.

 

10

 

(f) Except as otherwise provided in the Plan, a DMG Participant who ceases to be an
Eligible Employee but remains an Employee shall continue to be a DMG Participant but, on
and after the date he ceases to be an Eligible Employee, he shall no longer accrue
additional benefits hereunder unless and until he shall again become an Eligible Employee.

3.2 Participation Service. An individual completes one year of Participation Service on
the last day of the Employment Year during which he completes 1,000 Hours of Service.

3.3 Transferred Employees. If an employee of the Employer or a Controlled Entity (a)
ceases to satisfy the eligibility requirements of the Salaried Plan because he transfers into an
employment classification as a member of a group of employees to which the DMG Plan has been
extended and continues to be extended through a currently effective collective bargaining agreement
between his employer and the collective bargaining representative of the group of employees of
which he is a member, (b) continues to be employed by the Employer or a Controlled Entity, and (c)
coincident with his cessation of eligibility for the Salaried Plan, satisfies the eligibility
requirements of Appendix F Section 3.1, he shall cease to be a participant in the Salaried Plan and
shall be a DMG Participant in the DMG Plan, subject to the terms and conditions of the DMG Plan and
this Appendix F.

3.4 Disabled DMG Participants. Notwithstanding any provision of the DMG Plan to the
contrary, a DMG Participant who has been approved for benefits under a long term disability plan
sponsored by the Employer (an ‘Employer LTD Plan’) shall be credited with Payroll Period Benefit
Credits (as defined in Appendix F Section 4.1 (a)) and Vesting Service under the DMG Plan for any
period during which such DMG Participant is receiving such long term disability benefits; provided
however, that any such crediting shall cease as of the earlier of (a) such DMG Participant’s
Annuity Starting Date or (b) such DMG Participant’s Normal Retirement Date. For purposes of the
accruals described in the preceding sentence, a DMG Participant’s Payroll Period Benefit Credit
pursuant to Appendix F Section 4.1(a) immediately prior to the disability entitling him to
benefits under an Employer LTD Plan shall be utilized.

IV. RETIREMENT BENEFITS

	4.1	 	Normal Retirement.

(a) From and after January 2, 1994, subject to Appendix F Section 4.1(b), (c), (d), and
(e), a DMG Participant whose employment with the Employer and all Controlled Entities is
terminated, for a reason other than death, on or after his Normal Retirement Date shall be
entitled to receive a retirement benefit, payable at the time and in the form provided in
Article VII of the DMG Plan and this Appendix F, that is based upon a Pension commencing on
the DMG Participant’s Annuity Starting Date, each monthly payment of such Pension being
equal to one-twelfth of the amount of the DMG Participant’s Career Benefit Credit. For purposes of this Paragraph, ‘Career
Benefit Credit’ shall mean the sum of the DMG Participant’s Payroll Period Benefit Credits earned
over the DMG Participant’s period of employment after January 1, 1994 and while an Eligible
Employee and a Participant in the Plan.

 

11

 

For purposes of this Paragraph, the DMG Participant’s
‘Payroll Period Benefit Credit’ shall mean an amount equal to the DMG Participant’s regular hourly
rate of pay for the payroll period for which the benefit credit is then being determined and for
the position to which the DMG Participant is normally assigned multiplied by the number of
regularly scheduled hours for such position for such payroll period multiplied by 2.2%. Overtime,
temporary upgrades to higher paying positions, and other extra compensation shall not be taken
into account in determining a DMG Participant’s Payroll Period Benefit Credit. Notwithstanding the
foregoing provisions of this Appendix F Section 4.1 (a), if a DMG Participant is scheduled to work
a 12-hour shift (the ‘Shift’), the regularly-scheduled overtime for the Shift shall be taken into
account in determining a DMG Participant’s Payroll Period Benefit Credit, and is calculated by
multiplying the DMG Participant’s straight time hourly rate of pay by the number of
regularly-scheduled overtime hours for the shift for which the DMG Participant is paid. A DMG
Participant’s Payroll Period Benefit Credit shall not be reduced to take into account any period
of unpaid absence during the payroll period for which such Payroll Period Benefit Credit is being
determined; provided, however, that if a DMG Participant is absent without pay for the entire
payroll period for which such Payroll Period Benefit Credit is being determined, the amount of
Payroll Period Benefit Credit earned by the DMG Participant for such payroll period shall be zero.

(b) Notwithstanding anything to the contrary in Appendix F Section 4.1(a), for the period preceding
January 2, 1994, the value of the Accrued Benefit for such period of each DMG Participant who was
employed by the Company or a Controlled Entity on January 1, 1994, shall be determined under the
terms of the DMG Plan as in effect immediately prior to the Effective Date (pursuant to which the
DMG Participant’s Accrued Benefit was determined as the greater of certain benefits provided under
the DMG Plan or the benefit formula provided in the Salaried Plan). The benefit accruals
described in Appendix F Section 4.1(a) are in addition to the benefit accrual, if any, provided to
a DMG Participant under this Paragraph.

(c) Notwithstanding anything to the contrary in Appendix F Section 4.1(a):

(1) effective during the period beginning on January 1, 1998 and ending on June 30, 2002,
for any DMG Participant who performs an Hour of Service on or after January 1, 1998, the
DMG Participant’s Payroll Period Benefit Credits during such period shall be determined
pursuant to Appendix F Section 4.1(a) by using a 2.4%
multiplier, rather than the 2.2% multiplier specified in Appendix F Section 4.1(a); and

 

12

 

(2) effective during the period beginning on July 1, 2002 and ending on June 30, 2005, for
any DMG Participant who performs an Hour of Service on or after July 1, 2002, the DMG
Participant’s Payroll Period Benefit Credits during such period shall be determined
pursuant to Appendix F Section 4.1(a) by using a 2.4% multiplier, rather than the 2.2%
multiplier specified in Appendix F Section 4.1(a).

Additional benefit accruals for DMG Participants will be determined on and after July 1, 2005 in
accordance with Appendix F Section 4.1(a).

(d) If a Participant becomes a DMG Participant in the DMG Plan pursuant to the provisions of
Appendix F Section 3.3, then his Career Benefit Credit under the DMG Plan shall be increased by
including the payroll periods taken into account under the Salaried Plan for benefit accrual
purposes prior to such transfer and his regular rate of pay during such payroll periods. Contrary
DMG Plan provisions notwithstanding, in no event shall the Accrued Benefit of any Participant who
has become a DMG Participant in the DMG Plan in accordance with Appendix F Section 3.3 be less
than the accrued benefit to which such Participant would have been entitled under the Salaried Plan
as of the date of the transfer specified in Appendix F Section 3.3.

(e) Notwithstanding any other provision of the Plan to the contrary, for purposes of determining a
DMG Participant’s Accrued Benefit under the DMG Plan, for Plan Years beginning on or after January
1, 2002, a DMG Participant’s compensation taken into account for any Plan Year shall not exceed
$200,000, as adjusted automatically to reflect any cost-of-living increases in effect under section
401(a)(17) of the Code. The foregoing shall be applied by taking into account any proration of
such limitations as may be required under section 401(a)(17) of the Code and the regulations thereunder
or otherwise by applicable law. For purposes of determining benefit accruals in Plan Years
beginning after December 31, 2001, a DMG Participant’s annual compensation limitation as provided
in this Paragraph for determination periods beginning before January 1, 2002, shall be: $150,000
for any determination period beginning in 1996 or earlier; $160,000 for any determination period
beginning in 1997, 1998, or 1999; and $170,000 for any determination period beginning in 2000 or
2001.

(f) (1) The Committee shall furnish any DMG Participant whose employment with the Employer or any
Controlled Entity continues beyond his Normal Retirement Date (or resumes his employment after his
Normal Retirement Date, but prior to commencement of the payment of his retirement benefit) with
the notification described in 29 CFR § 2530.203-3. Upon such DMG Participant’s subsequent
termination of employment, his retirement benefit payable pursuant to Appendix F Article VII shall be increased to the
extent required, if at all, under such regulations as provided in Paragraph (2) below to
avoid the effecting of a prohibited forfeiture of benefits by reason of the suspension of
benefits during such DMG Participant’s post Normal Retirement Date employment.

 

13

 

(2) A DMG Participant described in Paragraph (f)(1) above shall be entitled to a
retirement benefit equal to the greater of:

(a) his Accrued Benefit determined pursuant to the applicable provisions of the
Plan through the date of his subsequent termination of employment; or

(b) the Actuarial Equivalent of his Accrued Benefit payable at his Normal
Retirement Date.

(3) Further, such DMG Participant’s retirement benefit payable pursuant to Appendix F
Section 4.1(f) shall be increased to the extent required, if at all, under section
401(a)(9)(C)(iii) of the Code in the event his employment or reemployment continues after
April 1 of the year immediately following the year he attains age seventy and one-half.

	4.2	 	 Early Retirement.

(a) A DMG Participant whose employment with the Employer and all Controlled Entities is
terminated, for a reason other than death, on or after his Early Retirement Date and prior
to his Normal Retirement Date, shall be entitled to receive a retirement benefit, payable
at the time and in the form provided in Appendix F Article VII, that is based upon a
Pension commencing on the DMG Participant’s Annuity Starting Date, each monthly payment of
such Pension being computed in the manner provided in Appendix F Section 4.1 (a) (subject
to Appendix F Section 4.1(b), (c), (d), and (e)) considering his Career Benefit Credit to
the date of his termination of employment.

(b) A DMG Participant entitled to a benefit pursuant to Paragraph (a) may, by request to
the Committee in the form prescribed by the Committee, commence his benefit as of the first
day of the month coinciding with or next following the date of his Retirement, or as of the
first day of any subsequent month which precedes his Normal Retirement Date, provided, that
such request must be received by the Committee not less than thirty days prior to the
proposed date of commencement of the benefit (unless such thirty days’ notice is waived by
the Committee in its discretion), and the value thereof shall be based upon a Pension
commencing on the date so requested, each monthly payment of such Pension being computed
in the manner provided in Paragraph (a) above, provided that if the DMG Participant’s
Annuity Starting Date precedes the DMG Participant’s sixty-second birthday, his retirement
benefit shall be multiplied by the appropriate factor from the following table:

14

 

	 	 	 	 	 
	Age at	 	 	 
	Annuity	 	Early Retirement	 
	Starting Date	 	Factors	 
	 
	 	 	 	 
	62
	 	 	1.00	 
	61
	 	 	.96	 
	60
	 	 	.92	 
	59
	 	 	.82	 
	58
	 	 	.76	 
	57
	 	 	.70	 
	56
	 	 	.64	 
	55
	 	 	.58	 

If a DMG Participant’s Annuity Starting Date does not coincide with his date of birth, the
appropriate factor with respect to the table above shall be determined by interpolation. In no
event shall a DMG Participant’s retirement income determined in accordance with this Appendix F
Section 4.2(b) be less than the amount of early retirement income payable to such DMG Participant
as of December 31, 1993.

(c) Notwithstanding any provision of the DMG Plan to the contrary, but solely for the
purpose of determining a DMG Participant’s eligibility to receive a benefit pursuant to
Appendix F Section 4.2(a), and not for purposes of determining a DMG Participant’s Accrued
Benefit, a DMG Participant who was a DMG Participant immediately prior to December 15,
1999 will be treated as though he is employed by the Employer during any period that he is
employed by Amergen or any Amergen Affiliate on and after December 15, 1999; provided,
however, that the foregoing provisions of this sentence shall apply only with respect to
benefits payable following the DMG Participant’s termination of employment with Amergen or
any Amergen Affiliate; and provided further, however, that the amount of the retirement
benefit determined pursuant to Appendix F Section 4.1 (a) shall be determined utilizing
the DMG Participant’s Career Benefit Credit as of the date the DMG Participant’s
employment with the Employer and all Controlled Entities terminated (and not as of his
Early Retirement Date).

 

15

 

V. SEVERANCE BENEFITS AND DETERMINATION OF VESTED

INTEREST

5.1 No Benefits Unless Herein Set Forth. Except as set forth in this Article, upon
termination of employment of a DMG Participant for any reason other than Retirement or death, such
DMG Participant shall acquire no right to any benefit from the Plan or the Fund.

5.2   Severance Benefit.

(a) Each DMG Participant whose employment is terminated for any reason other than
Retirement or death shall be entitled to receive a retirement benefit, payable at the time
and in the form provided in Appendix F Article VII, that is based upon a Pension commencing
on the DMG Participant’s Annuity Starting Date, each monthly payment of such Pension being
equal to the product of such DMG Participant’s Vested Interest multiplied by the amount
computed in the manner provided in Appendix F Section 4.1(a) (subject to Appendix F Section
4.1(b), (c), (d) and (e)), considering his Career Benefit Credit to the date of his
termination of employment.

(b) A DMG Participant who is entitled to a benefit pursuant to Paragraph (a) may, by
request to the Committee in the form prescribed by the Committee, commence his benefit as
of the first day of the month coinciding with or next following his fifty-fifth birthday,
or as of the first day of any subsequent month which precedes his Normal Retirement Date;
provided, that such request must be received by the Committee not less than thirty days nor
more than 90 days prior to the proposed date of commencement of the benefit (unless such
thirty days’ notice is waived by the Committee in its discretion), the value of such DMG
Participant’s severance benefit shall be based upon a Pension commencing on the first day of
the month so requested, each monthly payment of such Pension being computed in the manner
provided in Paragraph (a) above, but multiplied by the appropriate factor from the
following table:

	 	 	 	 	 
	Duration in Years of Interval	 	 	 
	Between Annuity Starting Date	 	 	 
	and Normal Retirement Date	 	Reduction Factor	 
	 
	0
	 	 	1.000	 
	1
	 	 	.914	 
	2
	 	 	.839	 
	3
	 	 	.771	 
	4
	 	 	.712	 
	5
	 	 	.659	 
	6
	 	 	.611	 
	7
	 	 	.570	 
	8
	 	 	.531	 
	9
	 	 	.497	 
	10
	 	 	.466	 

 

16

 

The reduction factor with respect to the table above for a DMG Participant whose Annuity
Starting Date occurs on a date that is a fractional number of years prior to his Normal
Retirement Date shall be determined by interpolation. Notwithstanding the foregoing
provisions of this Appendix F Section 5.2(b), if a DMG Participant who is entitled to a
benefit pursuant to
this Paragraph terminates his employment with the Employer and all Controlled Entities within
eighteen months after the effective date of the Dynegy Transaction, and such DMG Participant has
attained the age of fifty and has completed ten or more years of Vesting Service on or prior to
the date of such termination of employment, then such DMG Participant may, by request to the
Committee in the form prescribed by the Committee, commence his benefit as of the first day of the
month coinciding with his fifty-fifth birthday, or as of the first day of any subsequent month
that precedes his Normal Retirement Date, provided that such request is received by the Committee
not less than 30 days nor more than 90 days before the selected date of commencement (unless such
36 days’ notice is waived by the Committee in its discretion); provided, however, that the amount
of such benefit payable as of a date after his attainment of age 55 but prior to his attainment of
age 62, shall be computed in the manner provided in Appendix F Section 4.1(a) (subject to
Appendix F Section 4.1(b), (c), (d) and (e)), using the DMG Participant’s Career Benefit Credit
as of the date he terminated employment with the Employer and all Controlled Entities and reduced
to reflect early commencement in accordance with the provisions of Appendix F Section 4.2(b) and
not in accordance with the immediately foregoing provision of this Section; and further provided,
however, that the amount of such benefit payable as of date on or after his attainment of age 62
shall be computed in the manner provided in Appendix F Section 4.1(a) (subject to Appendix F
Section 4.1(b), (c), (d) and (e)), using the DMG Participants Career Benefit Credit as
of the date he terminated employment with the Employer and all Controlled Entities, and shall not
be reduced to reflect early commencement. For purposes of the preceding sentence, ‘Dynegy
Transaction’ shall mean the transactions contemplated in that certain Agreement and Plan of Merger
dated as of June 14, 1999, by and among Illinova Corporation, Energy Convergence Holding Company,
Energy Convergence Acquisition Corporation, Dynegy Acquisition Corporation, and the Company, as
amended. The effective date of the Dynegy Transaction was February 1, 2000.

(c) A DMG Participant’s Vested Interest shall be determined by such DMG Participant’s full years
of Vesting Service in accordance with the following schedule:

	 	 	 	 	 
	Full Years of	 	Vested	 
	Vesting Service	 	Interest	 
	 
	Less than 5 years
	 	 	0	%
	5 years or more
	 	 	100	%

(d) Paragraph (c) above notwithstanding, a DMG Participant shall have a 100% Vested Interest
upon attainment of his Early Retirement Date while employed by the Employer or a Controlled Entity.

 

17

 

5.3   Vesting Service.

(a) For Employment Years beginning prior to December 1, 2001, subject to the remaining
provisions of this Section, an individual shall be credited with Vesting Service in an
amount equal to all service credited to him for vesting purposes for such years under the
terms of the DMG Plan as it existed on the day prior to December 1, 2001.

(b) For Employment Years beginning on or after December 1, 2001, subject to the remaining
provisions of this Section, an individual shall be credited with one year of Vesting
Service for each Employment Year for which he is credited with 1,000 or more Hours of
Service.

(c) In the case of an individual who terminates employment at a time when he has a 0%
Vested Interest in his Accrued Benefit and who then incurs a number of consecutive One-Year
Breaks-in-Service that equals or exceeds the greater of five years or his aggregate number
of years of Vesting Service completed before such One-Year Breaks-in-Service, such
individual’s years of Vesting Service completed before such One-Year Breaks-in-Service
shall be disregarded in determining his years of Vesting Service.

(d) In the case of an individual who incurs a One Year Break-in—Service after December
31, 1975 at a time when he has a 100% Vested Interest in his Accrued Benefit, years of
Vesting Service completed prior to such One-Year Break-in-Service shall be added to years
of Vesting Service with which the individual is credited after such One-Year
Break-in-Service.

(e) An individual who is on an uncompensated leave of absence duly authorized in
accordance with customary personnel practices and policies of the Employer uniformly
applied by it shall be credited with Vesting Service for the period of authorized leave if
he returns to work with an Employer or a Controlled Entity immediately upon the expiration
of such period.

(f) If the employment of a DMG Participant shall have been terminated prior to January 1,
1976 and he shall have been reemployed thereafter (whether before or after such date), his
period of prior employment shall be included in his Vesting Service only if, and to the
extent, provided in the DMG Plan as in effect on December 31, 1975.

(g) An individual shall not be credited with more than one year of Vesting Service in any
Employment Year.

(h) Art individual who completes more than 500 but less than 1,000 Hours of Service in an
Employment Year shall not accrue any Vesting Service during such year but also shall not
incur a One-Year Break-in-Service.

 

18

 

(i) Notwithstanding any provision in the Plan to the contrary, for purposes of determining
a DMG Participant’s Vesting Service, an individual who was a DMG Participant immediately
prior to December 15, 1999 and who became employed by Amergen or any Amergen Affiliate on
such date shall be credited with Vesting Service in accordance with the terms of the DMG
Plan for all periods of employment with Amergen or any Amergen Affiliate on and after
December 15, 1999 as if such individual’s employer were an Employer under the DMG Plan
during such period.

	5.4	 	Cash-Outs and Forfeitures.

(a) If a DMG Participant terminates employment with the Employer and has a 0% Vested
Interest or receives a lump sum distribution pursuant to Appendix F Section 7.7, such DMG
Participant’s Career Benefit Credit prior to such termination shall be disregarded and such
DMG Participant’s nonvested Accrued Benefit shall become a forfeiture as of the date of
such distribution (or as of the date of termination of employment if the DMG
Participant

has

a 0% Vested

Interest

with

such DMG Participant
being considered to have received a distribution of zero dollars on the date of his
termination of employment).

(b) Paragraph (a) above notwithstanding, if such terminated DMG Participant is subsequently
reemployed by the Employer or a Controlled Entity and the DMG Participant had a 0% Vested
Interest at the time of his termination, the Career Benefit Credit that was disregarded and
the forfeiture that occurred pursuant to Paragraph (a) above shall be restored if the DMG
Participant has not incurred a number of consecutive One-Year Breaks-in-Service that
exceeds the greater of five years or his aggregate number of years of Vesting Service
completed before such One-Year Breaks-in-Service. Such restoration shall occur on the date
of the DMG Participant’s reemployment, unless such date occurs after one or more One-Year
Breaks-in-Service, in which case the restoration shall occur upon the DMG Participant’s
completion of one year of Vesting Service after such One-Year Breaks-in-Service.

VI. DEATH BENEFITS

	6.1	 	Before Annuity Starting Date.

(a) Except as provided in Paragraphs (b), (c), (d), (e), and (f) below and in
Appendix F Section 6.3, no benefits shall be paid pursuant to the DMG Plan and Appendix F
of the Plan with respect to any DMG Participant who dies prior to his Annuity Starting
Date.

(b) A married DMG Participant with an Eligible Surviving Spouse shall have a survivor
annuity paid to his Eligible Surviving Spouse in the event such DMG Participant dies (i)
after he attains age fifty but before his Annuity Starting Date and (ii) while employed by
the Employer or a Controlled Entity or while receiving a Company-provided disability allowance.

 

19

 

The survivor annuity provided by this Paragraph shall be a single life annuity
consisting of monthly payments for the life of the Eligible Surviving Spouse in an amount equal to
50% of the monthly amount that the DMG Participant would have been eligible to receive under
Appendix F Section 4.2(a) as if he had retired on the date of his death under circumstances
described in Appendix F Section 4.2(a) and had elected to receive a benefit for his life alone,
except that no reduction shall be made (A) under Appendix F Section 4.2(b) to reflect that payment
of his benefits would commence prior to his Normal Retirement Date or (B) to reflect payment of
his Accumulation under Appendix F Section 6.3; provided, however, that if the Eligible Surviving
Spouse is more than ten years younger than the DMG Participant, the amount of the annuity payable
to such Eligible Surviving Spouse shall be reduced by one-half of one percent thereof for each
year in excess of ten years difference in their ages. Payment of the survivor annuity provided by
this Paragraph shall begin as of the first day of the month coinciding with or next following the
later of the date of the DMG Participant’s death or the date which otherwise would have been the
DMG Participant’s Normal Retirement Date and shall end with the last payment made before the death
of the Eligible Surviving Spouse; provided, however, that the Eligible Surviving Spouse may elect
to have the survivor annuity provided by this Paragraph commence as of the first day of the month
following the DMG Participant’s death.

(c) A married DMG Participant who has received credit for at least one Hour of Service on or after
August 23, 1984, who dies leaving an Eligible Surviving Spouse (i) on or after August 23, 1984,
(ii) while employed by the Employer or a Controlled Entity or while receiving a Company-provided
disability allowance, (iii) at a time when he has a 100% Vested Interest in his Accrued Benefit
under the Plan, (iv) prior to attaining the age of fifty, and (v) before his Annuity Starting Date
shall have a survivor annuity paid to his Eligible Surviving Spouse. The survivor annuity provided
by this Paragraph shall be a single life annuity consisting of monthly payments for the life of the
Eligible Surviving Spouse in an amount equal to 50% of the monthly amount (or the Actuarial
Equivalent of such amount in the case of a DMG Participant who has an Accumulation at the date of
his death) that the DMG Participant would have been entitled to receive under Appendix F Section
4.2(a) (payable in the form set forth in Appendix F Section 7.3(a), without any reduction to
reflect payment of his Accumulation under Appendix F Section 6.3 and reduced as set forth under
Section 4.2(b) to reflect the fact that payments commenced before the DMG Participant’s Normal
Retirement Date), as if the DMG Participant had terminated his employment with the Employer on the
date of his death, survived to his fifty-fifth birthday and then commenced receiving such early
retirement benefit and died on the day after he would have attained age fifty-five.

 

20

 

Payment of the
survivor annuity provided by this Paragraph shall begin as of the
first day of the month coinciding with or next following the later of the date of the DMG Participant’s death or
the date which otherwise would have been the DMG Participant’s Normal Retirement Date, and shall
end with the last payment made before the death of the Eligible Surviving Spouse; provided,
however, that the Eligible Surviving Spouse may elect to have the survivor annuity payable
pursuant to this Paragraph commence as of the first day of any month after the DMG Participant
would have attained age 55 and prior to the date that would have been the DMG Participant’s Normal
Retirement Date.

(d) If a DMG Participant’s employment with the Employer and all controlled Entities has terminated
on or after his Early Retirement Date and the DMG Participant subsequently dies leaving an Eligible
Surviving Spouse prior to his Annuity Starting Date, then a survivor annuity provided by this
Paragraph shall be a single life annuity consisting of monthly payments for the life of the
Eligible Surviving Spouse in a monthly amount equal to 50% of the monthly amount that would have
been payable to such Eligible Surviving Spouse if the Participant had commenced receiving his
Accrued Benefit in the form described in Appendix F Section 7.3(a) on the first day of the month
preceding his death (reduced to reflect as set forth under Appendix F Section 4.2(b) to reflect
that payments commence before the DMG Participant’s Normal Retirement Date). Payment of the
survivor annuity provided by this Paragraph shall begin as of the first day of the month coincident
with or next following the later of the date of the DMG Participant’s death or the date which
otherwise would have been the DMG Participant’s Normal Retirement Date and shall end with the last
payment made before the Eligible Surviving Spouse’s death; provided, however, that the Eligible
Surviving Spouse may elect to have the survivor annuity payable pursuant to this Paragraph commence
as of the first day of any month after the DMG Participant’s death but prior to the date that would
have been the DMG Participant’s Normal Retirement Date.

(e) A married DMG Participant who has received credit for at least one Hour of Service on or after
August 23, 1984, who (i) terminates employment with the Employer and all Controlled Entities before
his Early Retirement Date and at the time when he has a 100% Vested Interest in his Accrued Benefit
under the Plan, (ii) subsequently dies prior to his Annuity Starting Date, and (iii) leaves an
Eligible Surviving Spouse, shall have a survivor annuity paid to his Eligible Surviving Spouse.
The survivor annuity provided by this Paragraph shall be a single life annuity consisting of
monthly payments for the life of the Eligible Surviving Spouse. If the DMG Participant dies on or
prior to his Early Retirement Date, the monthly amount of such annuity shall be equal to 50% of the
monthly amount that the DMG Participant would have been eligible to receive under Appendix F
Section 4.2(a) (payable in the form set forth in Appendix F Section 7.3(a), and reduced (i) to
reflect any withdrawal of his Accumulation under Section 7.13 and (ii) as set forth under Section 4.2(b) to reflect the
fact that payments commence before the DMG Participant’s Normal Retirement Date), as if the
DMG Participant had survived to his Early Retirement Date, and then commenced receiving
such early retirement benefit, and died on the day after his Early Retirement Date.

 

21

 

If the
DMG Participant dies after his Early Retirement Date, the monthly amount of such annuity
shall be equal to 50% of the monthly amount that the DMG Participant would have been
eligible to receive under Appendix F Section 4.2(a) (payable in the form set forth in
Appendix F Section 7.3(a), and reduced (i) to reflect any withdrawal of this Accumulation
under Appendix F Section 7.13 and (ii) as set forth under Appendix F Section 4.2(b) to
reflect the fact that payments commence before the DMG Participant’s Normal Retirement
Date), as if the DMG Participant had retired and commenced receiving such early retirement
benefit on the day before the date of his death. Payment of the survivor annuity provided
by this Paragraph shall commence on the first day of the month coincident with or next
following the later of the date of the DMG Participant’s death or the date which otherwise
would have been the DMG Participant’s Normal Retirement Date and shall end with the last
payment made before the Eligible Surviving Spouse’s death; provided, however, that the
Eligible Surviving Spouse may elect to have the survivor annuity payable pursuant to this
Paragraph commence as of the first day of any month after the DMG Participant would have
attained age 55 and prior to the date that would have been the DMG Participant’s Normal
Retirement Date.

(f) Any DMG Plan or Appendix F of the Plan provisions to the contrary notwithstanding, in
the absence of consent by the DMG Participant’s Eligible Surviving Spouse, payment of any
survivor annuity payable to such spouse pursuant to this Section may not begin prior to
the date such DMG Participant would have reached his Normal Retirement Date.

6.2 After Annuity Starting Date. With respect to any DMG Participant who dies on or after
his Annuity Starting Date, whether or not payment of his benefit has actually begun, the only
benefit payable pursuant to the DMG Plan or Appendix F of the Plan shall be that, if any, provided
for his beneficiary pursuant to the form of benefit he was receiving or about to receive in
accordance with Appendix F Article VII.

6.3 Payment of Accumulation.

(a) If a DMG Participant dies before his Annuity Starting Date, his Accumulation will be
paid to his beneficiary designated pursuant to Paragraph (b) below in a single lump sum. If
a DMG Participant dies after his Annuity Starting Date, if he did not withdraw his
Accumulation prior to his death pursuant to Appendix F Section 7.13, and if payment of his
benefits under the DMG Plan or this Appendix F are not to be continued following his death to his spouse or the contingent annuitant pursuant to Appendix F
Sections 6.1(d), 6.1(e), 7.3(a), or 7.5(a), the excess, if any, of his Accumulation as of
his Annuity Starting Date over the sum of the benefits paid to him under the DMG Plan or
this Appendix F as of the date of his death, if any, shall be paid in a lump sum to the
beneficiary designated by the DMG Participant pursuant to Paragraph (b) below.

 

22

 

If a DMG
participant referred to in the preceding sentence dies after his Annuity Starting Date,
upon the death of the second to die of the DMG Participant and his contingent annuitant or
surviving spouse, the excess, if any, of the DMG Participant’s Accumulation at his Annuity
Starting Date over the sum of the benefits paid to him and his contingent annuitant or
spouse shall be paid in a lump sum to the beneficiary designated by the DMG Participant
pursuant to Paragraph (b) below.

(b) Subject to Appendix F Section 7.2(c)(4), each DMG Participant shall have the right to
designate the beneficiary or beneficiaries to receive any amounts payable under Paragraph
(a) above in the event of the death of the DMG Participant and his contingent annuitant or
surviving spouse, if applicable. Successive designations may be made by the DMG Participant,
and the last designation received by the Committee prior to the death of the DMG Participant
shall be effective and shall revoke all prior designations. If a designated person shall die
before the date for payment pursuant to Paragraph (a) above, then his interest shall
terminate, and, unless otherwise provided in the DMG Participant’s designation, such
interest shall be paid in equal shares to those designated beneficiaries, if any, who are
living on such date for payment. The DMG Participant shall have the right to revoke the
designation of any beneficiary without the consent of the beneficiary. Designations pursuant
to this Paragraph shall be made on the form prescribed by the Committee and shall be filed
with the Committee. If a DMG Participant shall fail to designate a beneficiary for purposes
of this Paragraph, if such designation shall for any reason be illegal or ineffective, or if
no beneficiary designated by the DMG Participant for purposes of this Paragraph shall be
living on the date for payment pursuant to Paragraph (a) above, then the designated
beneficiary to receive the amount payable pursuant to Paragraph (a) shall be: (i) if the DMG
Participant leaves a surviving spouse, any such amount shall be paid to such surviving
spouse; and (ii) if the DMG Participant leaves no surviving spouse, any such amount shall be
paid to such DMG Participant’s executor or administrator or to his heirs-at-law if there is
no administration of such DMG Participant’s estate.

6.4 Cash-Out of Death Benefit. If a DMG Participant dies prior to his Annuity Starting
Date, his surviving spouse or other beneficiary is entitled to a death benefit pursuant to this
Article and the Actuarially Equivalent present value of such death benefit is not in excess of
$1,000, such present value shall be paid to such surviving spouse or other beneficiary in a lump
sum payment in lieu of any other benefit herein provided and without regard to the spousal consent
requirement of Appendix F Section 6.1(f). Any such payment shall be made as soon as
administratively feasible following the DMG Participant’s date of death.

 

23

 

VII. TIME AND FORM OF PAYMENT OF BENEFITS

7.1 Time of Payment of Benefits. Payment of benefits under the Plan to a DMG Participant
(other than death benefits payable pursuant to Article VI) shall commence as of such DMG
Participant’s Annuity Starting Date, determined as follows, but the first payment shall be made no
earlier than the expiration of the election period described in Appendix F Section 7.2(c)(4):

(a) Except as provided in Paragraph (f) below, with respect to any DMG Participant who is
to receive his normal retirement benefit pursuant to Appendix F Section 4.1 (a), such DMG
Participant’s Annuity Starting Date shall be the first day of the month coincident with or
next following the date of such DMG Participant’s Retirement.

(b) Except as provided in Paragraph (f) below, with respect to any DMG Participant who is
to receive his early retirement benefit pursuant to Appendix F Section 4.2(a), such DMG
Participant’s Annuity Starting Date shall be the first day of the month coincident with or
next following his Normal Retirement Date.

(c) Except as provided in Paragraph (f) below, with respect to any DMG Participant who is
to receive early commencement of his early retirement benefit pursuant to Appendix F
Section 4.2(b), such DMG Participant’s Annuity Starting Date shall be the first day of the
month so requested.

(d) Except as provided in Paragraph (f) below, with respect to any DMG Participant who is
to receive his severance retirement benefit pursuant to Appendix F Section 5.2(a), such DMG
Participant’s Annuity Starting Date shall be the first day of the month coincident with or
next following his Normal Retirement Date.

(e) Except as provided in Paragraph (f) below, with respect to any DMG Participant who is
to receive early commencement of his severance benefit pursuant to Appendix F Section
5.2(b), such DMG Participant’s Annuity Starting Date shall be the first day of the month so
requested.

(f) With respect to any benefit payable pursuant to the provisions of Appendix F Section
7.7, the Annuity Starting Date shall be the date determined by the Committee which shall be
as soon as administratively feasible following the date of the DMG Participant’s termination
of employment.

 

24

 

7.2 Restrictions on Time of Payment of Benefits.

(a) Plan provisions to the contrary notwithstanding, a DMG Participant’s
Annuity Starting Date shall not occur:

(1) Unless such DMG Participant consents (and, if such DMG Participant is married, unless his
spouse consents (with such consent being irrevocable) in accordance with the requirements of
section 417 of the Code and applicable Treasury regulations thereunder), prior to such DMG
Participant’s Normal Retirement Date, except that (i) consent of the DMG Participant’s spouse under
this Paragraph (a)(1) shall not be required if the DMG Participant’s benefit is to be paid in the
standard form of benefit described in Appendix F Section 7.3 and (ii) no consent under this
Paragraph (a)(1) shall be required if the DMG Participant’s benefit is to be paid under Appendix F
Section 7.7;

(2) After the sixtieth day following the close of the Plan Year during which such DMG Participant
attains, or would have attained, his Normal Retirement Date or, if later, terminates his employment
with the Employer and all Controlled Entities; or

(3) At a time or in a manner inconsistent with the provisions of section 401(a)(9) of the Code and
applicable Treasury regulations thereunder and, in no event, after April 1 of the calendar year
following the later of (A) the calendar year in which such DMG Participant attains the age of
seventy and one-half or (B) the calendar year in which such DMG Participant terminates his
employment with the Employer and all Controlled Entities (provided, however, that
clause (B) of this sentence shall not apply in the case of a DMG Participant who attains age
seventy and one-half before January 1, 2001, or in the case of a DMG Participant who is a
‘five-percent owner’ (as defined in section 416 of the Code) with respect to the Plan Year ending
in the calendar year in which such DMG Participant attains the age of seventy and one-half);
further, a DMG Participant may not elect to defer the receipt of his benefit hereunder to the
extent that such deferral creates a death benefit that is more than incidental within the meaning
of section 401(a)(9)(G) of the Code and applicable Treasury regulations thereunder. With
respect to distributions under the Plan made for calendar years beginning on or after January 1,
2002, the Plan will apply the minimum distribution requirements of section 401(a)(9) of the Code
in accordance with the regulations under section 401(a)(9) of the Code that were proposed on
January 17, 2001, notwithstanding any provisions of the Plan to the contrary. This shall continue
in effect until the end of the last calendar year beginning before the effective date of final
regulations under section 401(a)(9) of the Code or such other date as may be specified in guidance
published by the Internal Revenue Service.

 

25

 

(b) Payment of a death benefit pursuant to Appendix F Article VI, (1) if payable to other than the
DMG Participant’s spouse, must commence no later than the last day of the calendar year following
the calendar year in which such DMG Participant died or (2) if payable to the surviving spouse,
must commence no later than the later of (A) the last day of the calendar year following the
calendar year in which such DMG Participant died or (B) the last day of the calendar year in which
such DMG Participant would have attained the age of seventy and one-half, unless such surviving
spouse dies before payments commence, in which case the commencement of payment may
not be deferred beyond the last day of the calendar year following the calendar year in which such
surviving spouse died.

(c) (1) Except as provided in Paragraphs (c)(2) and (c)(3) below, Within the period of time
commencing ninety (90) days, and ending thirty (30) days, prior to his Annuity Starting Date, the
Committee shall give each DMG Participant a written notice that Plan benefits thereafter payable
will be in the form of a joint and survivor annuity under Appendix F Section 7.3(a) in the case of
a married DMG Participant unless the DMG Participant makes a Qualified Election within the
applicable Election Period to receive Plan benefits payable under the Plan in another form. In the
case of a DMG Participant who is not married, the notice shall inform him that Plan benefits will
be paid in the form of an applicable life annuity under Appendix F Section 7.3(b) unless a
Qualified Election is made for another form of benefit payable under the Plan. Such notice shall
also provide written explanation of (i) the terms and conditions of the applicable standard form of
annuity; (ii) the DMG Participant’s right to make, and the effect of, an election to waive the
applicable standard annuity form of benefit; (iii) the relative values of the applicable optional
forms of benefit available; (iv) the rights of a DMG Participant’s spouse; (v) the right to make,
and the effect of, a revocation of a previous election to waive the applicable standard form of
annuity; (vi) if applicable, his right to defer his Annuity
Starting Date; and (vii) if applicable,
his right to a Direct Rollover pursuant to Appendix F
Section 7.8.

(2)
In the event the written notice described in Paragraph (c)(1) above is provided to a DMG
Participant before his Annuity Starting Date but less than thirty (30) days prior to such date,
such DMG Participant (with the consent of his spouse, if he is married) may elect, on a properly
completed election form provided by the Committee, to waive the minimum thirty (30) day notice
described in Paragraph (c)(1) above, provided the following conditions are met:

(A) The Committee provides descriptive information to the DMG Participant clearly
indicating that he has the right to at least thirty (30) days to consider whether to waive
the applicable standard form of annuity and elect an alternative form of benefit available to him under the
plan;

 

26

 

(B) the DMG Participant is permitted to revoke an election made pursuant to (A)
above at least until the Annuity Starting Date, or, if later, at any time prior to the
expiration of the seven (7)-day period that begins on the day immediately following the
date the written notice described in Paragraph (c)(1) above is provided to the DMG
Participant and distribution in accordance with such election does not commence prior to
the expiration of such seven (7)-day period; and

(C) The DMG Participant’s Annuity Starting Date is after the date such written notice is
provided to the DMG Participant.

The DMG Participant’s Annuity Starting Date may be prior to the date the DMG Participant
makes any affirmative benefit distribution election pursuant to this
Paragraph (c)(2) and
prior to the date distribution is permitted to commence pursuant to (B) above, provided
that, except in a case due solely to administrative delay, distribution pursuant to such
election shall commence not more than ninety (90) days after the written notice described
in Paragraph (c)(1) above is provided to the DMG Participant.

(3) In accordance with the conditions and requirements of the Paragraph (c)(3) and of section
417(a)(7) of the Code and the Treasury Regulations promulgated
thereunder, a DMG Participant who is
eligible to do so may elect a retroactive annuity starting date with respect to the distribution
of his retirement benefit. For purposes of the Plan, a retroactive annuity starting date (‘RASD’)
means an Annuity Starting Date affirmatively elected by a DMG Participant which is on or before
the date the written notice described in Paragraph (c)(1) above is provided to the DMG
Participant.

(A) A DMG Participant shall be eligible to elect a RASD only if the following
requirements and conditions are met:

(i) The DMG Participant has requested the written notice described in Paragraph
(c)(1) above prior to this Annuity Starting Date and, solely due to
administrative delay, such written notice is provided to the DMG Participant on
or after his Annuity Starting Date;

(ii) The DMG Participant’s retirement benefit payments have not commenced;

(iii) The
DMG Participant’s elected RASD is not prior to the date of his
termination of employment;

 

27

 

(iv) The
DMG Participant’s spouse (including an alternate payee who is treated as such
spouse under an order the Committee has determined to be a qualified domestic relations
order), determined as if the date distributions are to commence was the DMG Participant’s
Annuity Starting Date, consents to the distribution in a Qualified Election; provided,
however, such spousal consent is not applicable if the amount of the survivor annuity
payments for such spouse under the RASD election are not less than the amount of the
survivor annuity payments for such spouse under the applicable standard form of annuity
with an Annuity Starting Date after the date the written notice described in Paragraph
(c)(1) above is provided to the DMG Participant;

(v) Any distribution (including appropriate interest adjustments) based on the RASD must
satisfy the requirements of section 415 of the Code if the date the distribution is to
commence is substituted for the Annuity Starting Date for all purposes, including for
purposes of determining the Applicable Interest Rate and the Applicable Mortality Table;
provided, however, satisfaction of such requirement is not required in the case of a
distribution in the form of an annuity described in Appendix F Section 7.3 or Appendix F
Section 7.5 and the date such distribution is to commence in any such form is twelve (12)
months or less from the RASD; and

(vi) In the case of a form of retirement benefit distribution which would have been
subject to the present value requirements of section 417(e)(3) of the Code if such
distribution had actually commenced as of the RASD, such distribution must be not less
than the retirement benefit produced by application of the Applicable Interest Rate and
the Applicable Mortality Table determined as of the date distribution is to commence to
the annuity form which corresponds to the annuity form used to determine the retirement
benefit amount as of the RASD.

(B) The future payments of retirement benefit to the DMG Participant must be the same as the future
payments of retirement benefit which would have been paid to the DMG Participant if such payments
had actually commenced on the RASD and the DMG Participant must receive a make-up payment to
reflect the missed payment or payments for the period between the RASD and the date of the actual
make-up payment (with an appropriate adjustment for interest at the Applicable Interest Rate for
such period on such missed payment or payments);

 

28

 

(C) The written notice described in Paragraph (c)(1) above must generally be provided to
the DMG Participant not less than thirty (30) days nor more than ninety (90) days prior to
the date of the first payment pursuant to the DMG Participant’s election of an RASD and
such election must be made after such written notice is provided but on or prior to the
date of such first payment; provided, however, such written notice may be provided less
than thirty (30) days prior to the date of such first payment if the requirements of
Paragraph (c)(2) above would be satisfied when such date is substituted for the Annuity
Starting Date in applying the requirements of such Paragraph other than the requirements
described in the final sentence of such Paragraph; and, provided, further, that, except in
a case due solely to administrative delay, the date of such first payment shall be not
more than ninety (90) days after such written notice is provided to the DMG Participant.

(4) For
purposes of this Appendix F Section 7.2(c), the following defined terms have the meanings
provided below where such terms are used in the initially capitalized form:

(A) The term ‘Election Period’ shall mean, subject to the modifications under certain
circumstances described in Paragraphs (c)(2) and (c)(3) above, the ninety (90) day
period ending on the DMG Participant’s Annuity Starting Date.

(B) The
term ‘Qualified Election’ shall mean an election to waive the applicable standard
form of annuity. The DMG Participant’s election must be in writing and, if he is married,
must be consented to by his spouse. The spouse’s consent to an election must acknowledge
the applicable standard form of annuity and the spouse must acknowledge such consent before
a notary public or Plan representative. The waiver must state the specific beneficiary
applicable (including any class of beneficiaries). Such election may not be changed without
further spousal consent. Notwithstanding this consent requirement, if the DMG Participant
establishes to the satisfaction of the Committee that such written consent may not be
obtained because there is no spouse or the spouse cannot be located, an election will be
deemed a Qualified Election. Also, if the DMG Participant is legally separated or has been
abandoned (within the meaning of applicable law) and the DMG Participant has a court order
to such effect, spousal consent is not required. Any consent necessary under this Paragraph
(4)(B) will be valid only with respect to the spouse who signs the consent, or in the event
of a deemed Qualified Election, the designated spouse. Additionally, a revocation of a
prior election may be made by a DMG Participant without the consent of the spouse at any
time during the applicable Election Period. The number of revocations shall not be
limited. Any new election of an optional form of benefit will require new spousal consent. The preceding sentence shall not apply if such election is back
to the applicable standard form of annuity.

 

29

 

(d) Subject to the provisions of Paragraphs (a)(2) and (a)(3), a DMG Participant’s Annuity
Starting Date shall not occur while the DMG Participant is employed by the Employer or any
Controlled Entity.

(e) Appendix F Section 7.1 and Paragraphs (a)(1) and (a)(2) above notwithstanding, but
subject to the provisions of Paragraph (a)(3) above, a DMG Participant, other than a
DMG Participant whose Actuarially Equivalent present value of his Vested Interest in his
Accrued Benefit is not in excess of $1,000, must file a claim for benefits in the manner
prescribed by the Committee before payment of his benefits will commence. In the event that
the requirement in the preceding sentence delays the commencement of payment of a DMG
Participant’s benefits to a date after his Normal Retirement Date, such DMG Participant’s
benefit shall not be less than the Actuarial Equivalent of his Accrued Benefit payable at
his Normal Retirement Date.

7.3
Standard Form of Benefit for DMG Participants. For purposes of Appendix F Article
IV or V the following standard forms of benefit shall apply:

(a) The standard form of benefit for any DMG Participant who is married on his Annuity
Starting Date shall be an annuity pursuant to which the DMG Participant shall receive the
greater of (1) a joint and survivor annuity which is the Actuarial Equivalent of the
Pension described in paragraph (b) and which is payable for the life of the DMG
Participant with a survivor annuity for the life of the DMG Participant’s spouse that
shall be one-half the amount of the annuity payable during the joint lives of the DMG
Participant and the DMG Participant’s spouse and (2) the Pension determined under Appendix
F Article IV or V hereof, as applicable, multiplied by a factor of .9000 reduced by .0050
for each year by which the DMG Participant’s spouse is more than ten years younger than
the DMG Participant, and such spouse shall receive a benefit equal to one-half of the
amount of the annuity payable during the joint lives of the DMG Participant and such
spouse.

(b) The standard form of benefit for any DMG Participant who was not married on his
Annuity Starting Date shall be the Pension described in Appendix F Article IV or V,
whichever is applicable to such DMG Participant.

7.4
Election Concerning Form of Benefit. Any DMG Participant who would otherwise receive
the standard form of benefit described in Appendix F Section 7.3 may elect not to take his benefit
in such form by properly executing and filing the benefit election form prescribed by the Committee
during the Election Period described in Appendix F Section 7.2(c)(4)(A) as a Qualified Election as
described in Appendix F Section 7.2(c)(4)(B).

 

30

 

7.5 Alternative Forms of Benefit. For purposes of Article IV or V, the benefit for any
DMG Participant who has elected pursuant to Appendix F Section 7.4 not to receive his benefit in
the standard form set forth in Appendix F Section 7.3 shall be paid in one of the following
alternative forms described below selected by such DMG Participant, or, in the absence of such
selection, by the Committee prior to his Annuity Starting Date; provided, however, that the period
and method of payment of such form shall be in compliance with the provisions of section 401
(a)(9) of the Code and applicable Treasury regulations thereunder:

(a) Joint and Survivor Option.

(i) Except as otherwise provided In this Paragraph (a), a DMG Participant may
elect to receive an annuity payable for the life of the DMG Participant with a
survivor annuity (with monthly payments under such survivor annuity equal to 1%,
50% 75% or 100%, as specified by the DMG Participant in his election of this
option, of such DMG Participant’s monthly benefit) to the beneficiary designated
by such DMG Participant in accordance with Appendix F Section 7.11 for such
designated beneficiary’s remaining lifetime. The benefit elected under this clause
(i) shall be the Actuarial Equivalent of the Pension referred to in Appendix F
Section 7.3(b).

(ii) Notwithstanding the foregoing, a DMG Participant who elects a joint and
survivor annuity pursuant to Appendix F Section 7.5(a)(i) shall receive a benefit equal to the
greater of (A) the benefit computed under subparagraph (i) above and (B) a benefit
in the form described in Appendix F Section 7.5(a)(i) that is the Actuarial
Equivalent of the benefit computed under Appendix F Section 7.3(a) (or that would
be computed under Appendix F Section 7.3(a) if the contingent annuitant was the
DMG Participant’s spouse).

(iii) Any Plan provision to the contrary notwithstanding, the optional form of
payment described in this Paragraph (a) shall become effective on the DMG
Participant’s Annuity Starting Date, except that such election will be
automatically cancelled if either the DMG Participant or his contingent annuitant
dies before such DMG Participant’s Annuity Starting Date. An election of such
optional form cannot be modified or rescinded after the effective date thereof.

(iv) A DMG Participant may not elect an optional form of benefit pursuant to this
Paragraph (a) providing monthly benefits to a contingent annuitant who is other
than his spouse unless the Actuarial Equivalent of the payments expected to be
made to the DMG Participant is more than 50% of the Actuarial Equivalent of the
total payments expected to be made under such optional form. In no event, however,
shall the amount of each monthly payment to
a contingent annuitant exceed the amount of each monthly payment made to the DMG
Participant:

 

31

 

(b) Life Annuity. The DMG Participant may elect to receive an annuity payable for
the life of the DMG Participant. The benefit elected under this Paragraph shall be the
Actuarial Equivalent of the Pension referred to in Appendix F Section 7.3 (b). The optional
form of payment described in this Paragraph shall become effective on the DMG
Participant’s Annuity Starting Date, except that such election shall be automatically
cancelled if the DMG Participant dies before such date. An election of such optional form
cannot be modified or rescinded after the effective date thereof

7.6 Level Income Option. If payment of a DMG Participant’s benefit commences prior to the
earliest age as of which such DMG Participant will become eligible for an Old-Age Insurance Benefit
under the Social Security Act and such DMG Participant’s benefits will be paid in the form of an
annuity, then at the request of the DMG Participant the amount of the payments of his benefit may
be adjusted so that an increased amount will be paid prior to such age and a reduced amount
thereafter; the purpose of this adjustment is to enable the DMG Participant to receive from the
Plan and under the Social Security Act an aggregate income in approximately a level amount for
life. Such adjusted payments shall be the Actuarial Equivalent of the benefit otherwise payable
to such DMG Participant.

7.7 Cash-Out of Accrued Benefit. If a DMG Participant terminates his employment with
the Employer and all Controlled Entities and the Actuarially Equivalent present value of his Vested
Interest in his Accrued Benefit is not in excess of $1,000, then such present value shall be paid
to such terminated DMG Participant in lieu of any other benefit herein provided and without regard
to the consent requirements of Appendix F Section 7.2(a)(1) and the election and spousal Consent
requirements of Appendix F Section 7.4(c). Any such payment shall be made as soon as
administratively feasible following such DMG Participant’s termination of employment. The
provisions of this Section shall not be applicable to a DMG Participant following his Annuity
Starting Date.

7.8 Direct Rollover Election. Notwithstanding any provision of the Plan to the contrary
that would otherwise limit a Distributee’s election under this Section, a Distributee may elect, at
the time and in the manner prescribed by the Committee, to have all or any portion of an Eligible
Rollover Distribution paid directly to an Eligible Retirement Plan specified by the Distributee in
a Direct Rollover. The preceding sentence notwithstanding, a Distributee may elect a Direct
Rollover pursuant to this Section only if such Distributee’s Eligible Rollover Distributions during
the Plan Year are reasonably expected to total $200 or more. Furthermore, if less than 100% of the
DMG Participant’s Eligible Rollover Distribution is to be a Direct Rollover, the amount of the
Direct Rollover must be $500 or more. Prior to any Direct Rollover pursuant to this Section, the
Committee may require the Distributee to furnish the Committee with a statement from the plan,
account, or annuity to which the benefit is to be transferred
verifying that such plan, account, or annuity is, or is intended to be, an Eligible Retirement
Plan.

 

32

 

7.9 Special Distribution Limitations. [See Section 8.9, Dynegy Inc. Retirement Plan for
application to DMG Participants.]

7.11 Beneficiaries and Joint Annuitants.

(a) Subject to the restrictions of Appendix F Section 7.4, each DMG Participant shall have
the right to designate the beneficiary or beneficiaries or joint annuitant to receive any
continuing payments in the event such DMG Participant’s benefit is payable in a form
whereby payments could continue beyond such DMG Participant’s death. Each such
designation shall be separate from the beneficiary designation under Appendix F Section
6.3(b), and each such designation shall be made on the form prescribed by the Committee and
shall be filed with the Committee. Any such designation may be changed at any time by such
DMG Participant by execution of a new designation form and filing such form with the
Committee except that a joint annuitant cannot be changed after a DMG Participant’s Annuity
Starting Date.

(b) If a DMG Participant’s designated joint annuitant dies before the DMG Participant’s
Annuity Starting Date, such DMG Participant’s election of a form of benefit for the joint
lives of the DMG Participant and such joint annuitant shall be canceled automatically and
such DMG Participant’s benefit shall be paid in the form of the standard benefit set forth
in Appendix F Section 7.3, unless a new election of an alternative form of benefit is made
in accordance with the provisions of Appendix F
Section 7.4. The death of a joint annuitant
following a DMG Participant’s Annuity Starting Date shall not affect a DMG Participant’s
benefit election or permit such DMG Participant to revoke such election.

7.12 Reemployment of DMG Participants.

(a)     (1) In the event a DMG Participant to whom payment of his retirement benefit under the
DMG Plan or Appendix F of the Plan has commenced is reemployed by an Employer or a
Controlled Entity, whether or not as an Eligible Employee, payment of his retirement
benefit shall not be interrupted of otherwise adversely affected, but shall be subject to
the terms and conditions of this Appendix F Section 7.12.

(2) In the event a DMG Participant is reemployed by an Employer or Controlled Entity,
whether or not as an Eligible Employee, before payment of his retirement benefit has
commenced, his benefit shall not commence during his period of reemployment, but shall be
subject to the terms and conditions of Appendix F Sections 4.1(f) and 7.2(d).
 

 

33

 

(b) If a DMG Participant described in Paragraph (a)(1) above is reemployed as an Eligible
Employee, he shall resume benefit accruals pursuant to the applicable provisions of the
DMG Plan or Appendix F of the Plan, subject to the modifications required by this Appendix
F Section
7.12. In this regard, the benefit accrual of such DMG Participant during his reemployment
shall be determined at the end of such period of reemployment to be the excess, if any, of
the amount determined pursuant to the applicable provisions in the Plan over the Actuarial
Equivalent of the DMG Participant’s Accrued Benefit as of his Annuity Starting Date. Any
such excess shall be applied as of the first retirement benefit payment after the DMG
Participant’s period of reemployment to increase such retirement benefit payment and each
payment thereafter in the annuity form in which such DMG Participant’s retirement benefit
is being paid, together with an actuarial adjustment, if necessary, adequate to satisfy
the requirements of section 411 (a) of the Code and 29 CFR
2530.203-3 concerning the delay
in payment of the amount of such increase. In the event such DMG Participant’s
reemployment continues after April 1 of the year immediately following the year in which
he attains age seventy and one-half (70
1/2), an actuarial adjustment, if necessary,
adequate to satisfy the requirements of section 401 (a)(9)(C)(iii) of the Code with
respect to the delay in payment of the amount of such increase for periods after such
April 1 shall be applied. In no event shall retirement benefit payments made prior to the
date of such DMG Participant’s reemployment or during his period of reemployment be taken
into account with respect to his benefit accruals or retirement benefits payable after his
reemployment or after his subsequent termination of employment.

7.13 Withdrawal of Accumulation.

(a) A DMG Participant may not withdraw his Accumulation while he remains in the active
employ of the Employer or a Controlled Entity, but a DMG Participant whose employment has
terminated and who has not begun to receive payment of his benefit under the Plan may
withdraw his Accumulation. In that event, the benefit otherwise payable to the DMG
Participant under the Plan shall be determined pursuant to Paragraph (b) of this Section.
Notwithstanding the preceding provisions of this Section, a DMG Participant may not elect
to withdraw his Accumulation unless the DMG Participant’s spouse consents in writing to the
DMG Participant’s election to make such withdrawal, such consent acknowledges the effect of
such election, and such consent is witnessed by a representative of the Plan or a notary
public, unless the DMG Participant establishes to the satisfaction of a Plan representative
that such consent may not be obtained because there is no spouse, such spouse cannot be
located, or under such other circumstances as the Secretary of the Treasury may by
regulation prescribe. Any consent by a spouse (or establishment that the consent of the
spouse may not be obtained) pursuant to this Section shall be effective only with respect
to such spouse. The portion of a DMG Participant’s Accumulation which is attributable to
interest credited thereon pursuant to Appendix F Section 1.1(2) and which is withdrawn
pursuant to the terms of this Section shall be subject to the mandatory withholding
requirements for lump sum distributions from a qualified plan and shall be eligible for
Direct Rollover pursuant to Appendix F Section 7.8.

 

34

 

(b) Notwithstanding any Plan provision to the contrary, if a DMG Participant has elected to
withdraw his Accumulation under Paragraph (a) of this Section, his remaining Accrued Benefit
(the ‘Residual Benefit’) shall be calculated according to the following provisions of this
Paragraph.

(i) Determine the ‘Vested Value’. The Vested Value shall be the greater of
(1) the annual retirement benefit payable to the DMG Participant commencing at his
Normal Retirement Date determined under Appendix F Section 4.1 of the Plan, and
(2) a single life annuity commencing in an annual amount at his Normal Retirement
Date determined by converting the DMG Participant’s Hypothetical Accumulation into
such an annuity using the Applicable Interest Rate and, with respect to the period
after the DMG Participant’s Normal Retirement Date, the Applicable Mortality
Table.

(ii) Determine the ‘Vested Portion’. The Vested Portion is a single life
annuity payable in an annual amount commencing at the DMG Participant’s Normal
Retirement Date. The Vested Portion shall be determined by converting the DMG
Participant’s Hypothetical Accumulation into such an annuity using the Applicable
Interest Rate and, with respect to the period after the DMG Participant’s Normal
Retirement Date, the Applicable Mortality Table.

(iii) Determine the ‘Residual Vested Annuity’. The Residual Vested Annuity
is determined by reducing the Vested Value, but not below zero, by the amount of
the Vested Portion.

(iv) Determine the ‘Residual Benefit’. The Residual Benefit is the lump
sum Actuarial Equivalent of the Residual Vested Annuity, determined as of the date
of withdrawal, based upon the Applicable Interest Rate and the Applicable
Mortality Table,

(c) The following provisions shall apply with respect to the aggregate amount of the
Accumulation and the Residual Benefit:

(i) If such aggregate amount is not in excess of $1,000, the Committee shall
direct that such amount be paid to the DMG Participant in a lump sum, in full
satisfaction and release of all further rights of the DMG Participant, his spouse
and his beneficiary or beneficiaries (designated pursuant to Appendix F Section
6.3(b)) to receive any benefits under the Plan.,

(ii) If such aggregate amount is more than $1,000, the DMG Participant shall
receive the Accumulation in a lump sum, and shall receive the Residual Vested
Annuity, payable at the time and in the form provided in Article VII.

 

35

 

(iii) Any lump sum distribution pursuant to this Paragraph (c) shall be paid
within 120 days after the end of the Plan Year in which the DMG Participant’s
termination of employment occurs.

(d) The Accrued Benefit of a DMG Participant who received a lump sum distribution of his
Accumulation prior to January 1, 1988, and who is reemployed and becomes entitled to a
benefit under the Plan after that date, shall be calculated to reflect such distribution
pursuant to the provisions of paragraphs (i), (ii) and (iii) of subsection (b) above.

7.14 Reserved.

7.15 Commercial Annuities. At the direction of the Committee, the Funding Agent may pay
any form of benefit provided hereunder other than a lump sum or a Direct Rollover pursuant to
Appendix F Section 7.8 by the purchase of a commercial annuity contract and the distribution of
such contract to the DMG Participant or beneficiary, Thereupon, the Plan shall have no further
liability with respect to the amount used to purchase the annuity contract and such DMG Participant
or beneficiary shall look solely to the company issuing such contract for such annuity payments.
All certificates for commercial annuity benefits shall be nontransferable, except for surrender to
the issuing company, and no benefit thereunder may be sold, assigned, discounted, or pledged (other
than as collateral for a loan from the company issuing same). Notwithstanding the foregoing, the
terms of any such commercial annuity contract shall conform with the time of payment, form of
payment, and consent provisions of Appendix F Articles VI and VII.

7.16 Unclaimed Benefits. In the case of a benefit payable on behalf of a DMG Participant,
if the Committee is unable to locate the DMG Participant or beneficiary to whom such benefit is
payable, upon the Committee’s determination thereof, such benefit shall be forfeited. The timing of
such forfeiture shall comply with the time of payment rules described in Appendix F Sections 7.1
and 7.2. Notwithstanding the foregoing, if subsequent to any such forfeiture the DMG Participant or
beneficiary to whom such benefit is payable makes a valid claim for such benefit, such forfeited
benefit shall be restored.

 

36

 

APPENDIX A

TO APPENDIX F

TO DMG PLAN UNDER

THE DYNEGY INC. RETIREMENT PLAN

ENHANCED RETIREMENT PLAN

EFFECTIVE OCTOBER 1, 1999

	 	 	 
	Purpose

	 	A-1. The purpose of this Appendix A to the DMG Plan
(the ‘Plan’) is to provide for the terms of the
Enhanced Retirement Plan (the ‘ERP’) for Eligible
Participants (as defined in subsection A-4 below)
offered under the Plan during the Window Period (as
defined in subsection A-5 below).

	 
	 	 
	Effective Date

	 	A-2. This Appendix A is hereby amended and restated
effective as of December 1, 2001. This Appendix A
originally became effective as of October 1, 1999
(the ‘Effective Date’ of this Appendix A).

	 
	 	 
	Definitions

	 	A-3. Unless the context clearly implies or indicates
the contrary, a word, term or phrase used or defined
in the Plan is similarly used or defined in this
Appendix A. References to Articles and Sections after
December 31, 2007 are references to such Articles and
Sections in Appendix F of the Salaried Plan, of which
this Appendix A is a part.

	 
	 	 
	Eligible Participant

	 	A-4. For purposes of this Appendix A, the term
‘Eligible Participant’ means each Participant in the
Plan as of the Effective Date who will attain age 55
on or before December 31, 1999 and who is employed on
the Effective Date by an Employer and whose location
seniority is at Illinois Power Company’s Decatur,
Illinois headquarters. The term ‘ERP Participant’
means each Eligible Participant who (a) elects to
participate in the ERP during the Window Period by
written instrument provided by and delivered to the
Employee in accordance with procedures established by
the Employer, (b) executes a release, in a form
provided by and delivered to the Employer in
accordance with procedures established by the
Employer, with respect to any and all claims the
Participant may have in connection with his
employment with the Employer and the termination of
such employment, and (c) does not voluntarily
terminate his
employment and is not terminated for cause
before January 31, 2000 (or the date of the
Participant’s delayed retirement, if he is
required by the Employer to retire later
than January 31, 2000).

 

37

 

	 	 	 
	Window Period

	 	A-5. The ‘Window Period’ with respect to
the ERP as set forth in this Appendix A is
the period beginning on October 1, 1999 and
ending December 30, 1999.

	 
	 	 
	Retirement Date

	 	A-6. For purposes of this Appendix A, all
Eligible Participants who elect to
participate in the ERP will terminate
employment with the Company on January 31,
2000, and February 1, 2000 will be their
‘Retirement Date;’ provided, however, that
a limited group of employees whose
continued employment with the Employer is
required to effect the transition of
certain procedures and retraining efforts
as a result of the ERP (the ‘Transition
Employees’) may have a later Retirement
Date, but in no event will a Transition
Employee have a Retirement Date under the
ERP later than February 1, 2001.

	 
	 	 
	Retirement Age

	 	A-7. For the purposes of this Appendix A,
the ‘Retirement Age’ of each ERP
Participant will be his actual age as of
his Retirement Date plus five years.

	 
	 	 
	Enhanced Retirement Benefit

	 	A-8. Each ERP Participant will retire from
the Employer effective as of his Retirement
Date and will be entitled to receive the
following ‘Enhanced Retirement Benefit:

	 
	 	 
	 

	 	(a) A retirement income, payable for his
lifetime, in a monthly amount determined as
of his Retirement Date, calculated in
accordance with the terms of the DMG Plan
and Appendix F of the Salaried Plan, but
substituting his Retirement Age as defined
in this Appendix A (which retirement income
shall be in lieu of, and not in addition
to, the retirement benefits described in
Article IV of the Plan); and

 

38

 

	 	 	 
	 

	 	(b) An ‘Appendix Payment’ in the amount of $675 per
month, payable for each month beginning on his
Retirement Date and ending on the later to occur if (i)
the month in which he attains age 62, or (ii) the month
in which he receives the twenty-fourth Appendix Payment;
provided, however, that any ERP Participant who has
attained age 62 on or before his Retirement Date shall
receive the Appendix Payment described in this Paragraph
A-8(b) in a lump sum payment of $16,200 (payable as of
his Retirement Date) in lieu of the monthly Appendix
Payments described herein; provided further, that any
ERP Participant who has not attained age 62 on or before
his Retirement Date, but who attains age 62 prior to the
date he receives twenty-four Appendix Payments, shall
receive the balance of such Appendix Payments (up to a
total of twenty-four Appendix Payments) in one lump sum
payment in the month he attains age 62. Notwithstanding
anything to the contrary contained in this Appendix A,
in the event an ERP Participant dies prior to the date
he receives his Appendix Payment hereunder, the balance
of such Appendix Payment shall be paid in a lump sum to
his surviving spouse (if he is married at the time of
his death) or to his beneficiary (if he is not married
at the time of his death or has completed a beneficiary
designation form in accordance with the provisions of
Section 6.3(b) of the Plan), as soon as practicable
after the date of his death; provided, however, that in
no event shall the sum of the amount paid to the ERP
Participant prior to his death pursuant to this
Paragraph A-8(b) and to his surviving spouse or
beneficiary exceed $16,2000.

	 
	 	 
	Form of Benefit

	 	A-9. The retirement income set forth in Paragraph
A-8(a) above shall be payable in the standard form set
forth in Section 7.3 of the Plan; provided, however,
that an ERP Participant may elect any optional form of
benefit to which he is otherwise entitled pursuant to
and in accordance with the terms of Section 7.4 of the
Plan.

 

39

 

	 	 	 
	Commencement of Benefits

	 	A-10. The retirement income and Appendix
Payments described in Paragraph A-8 above
shall commence on the ERP Participant’s
Retirement Date.

	 
	 	 
	Limited Duration of ERP

	 	A-11. The ERP as described in this
Appendix A is a provision of the Plan of
limited duration and the terms relating to
the ERP will not survive beyond the
Retirement Date, as defined in this
Appendix A, for each ERP Participant
(including the Transition Employees);
provided, however, that in no event will
the terms of the ERP extend beyond
February 1, 2001.

II.

Except as amended herein, the provisions of the Plan shall remain in full force and effect.

IN WITNESS WHEREOF, this Eleventh Amendment has been executed by the duly designated
officer and is effective as of the date set forth hereinabove.

	 	 	 	 	 
	 	Dynegy Inc.

 	 
	 	By:  	/s/ Julius Cox
 	 
	 	 	Title:  Chairman, Dynegy Benefit Plans Committee
	 	 	 	 
	 

 

40

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