Document:

Exhibit

EXHIBIT (10-2)

The Procter & Gamble 1992 Stock Plan
(as amended December 11, 2001)

THE PROCTER & GAMBLE 1992 STOCK PLAN
(as amended December 11, 2001)

ARTICLE A - Purpose.

The purpose of The Procter & Gamble 1992 Stock Plan (hereinafter referred to as the “Plan) is to encourage those employees of The Procter & Gamble Company (hereinafter referred to as the “Company”) and its subsidiaries who are largely responsible for the long-term success and development of the business to strengthen the alignment of interests between employees and the Company's shareholders through the increased ownership of shares of the Company's Common Stock, and to encourage those employees to remain in the employ of the Company and its subsidiaries. This will be accomplished through the granting to employees of options to purchase shares of the Common Stock of the Company, payment of a portion of the employees' remuneration in shares of the Common Stock, and the granting to them by the Company and a subsidiary, if appropriate, of deferred awards related to the increase in the price of the Common Stock of the Company as provided by the terms and conditions set forth in the Plan.

ARTICLE B - Administration.

1.    The Plan shall be administered by the Compensation Committee (hereinafter referred to as the "Committee") of the Board of Directors of the Company (hereinafter referred to as the "Board"), or such other committee as may be designated by the Board. The Committee shall consist of not less than three (3) members of the Board who are neither officers nor employees, or members of the Board who are "Non-Employee Directors" as defined in Rule 16b-3 under the Securities Exchange Act of 1934, as amended (hereinafter referred to as the "1934 Act"), or any successor rule or definition adopted by the Securities and Exchange Commission, to be appointed by the Board from time to time and to serve at the discretion of the Board.

2.    It shall be the duty of the Committee to administer this Plan in accordance with its provisions, to report thereon not less than once each year to the Board and to make such recommendations of amendments or otherwise as it deems necessary or appropriate. A decision by a majority of the Committee shall govern all actions of the Committee.

3.    Subject to the express provisions of this Plan, the Committee shall have authority: to grant nonstatutory and incentive stock options; to grant to recipients stock appreciation rights either freestanding, in tandem with simultaneously granted stock options, or in parallel with simultaneously granted stock options; to award a portion of a recipient's remuneration in shares of Common Stock of the Company subject to such conditions or restrictions, if any, as the Committee may determine; to determine all the terms and provisions of the respective stock option, stock appreciation right, and stock award agreements including setting the dates when each stock option or stock appreciation right or part thereof may be exercised and determining the conditions and restrictions, if any, of any shares of Common Stock acquired through the exercise of any stock option; and to make all other determinations it deems necessary or advisable for administering this Plan; provided, however, the Committee shall have the further authority at time of grant to:

(a)    waive the provisions of Article F, paragraph 1(a);

(b)     waive the provisions of Article F, paragraph 1(b);

(c)    waive the provisions of Article G, paragraph 4(a); and

(d)    impose conditions in lieu of those set forth in Article G, paragraphs 4 through 7, for nonstatutory stock options, stock appreciation rights, and stock award grants which do not increase or extend the rights of the recipient,

to take into consideration the differences, limitations, and requirements of foreign laws or conditions including tax regulations, exchange controls or investment restrictions, possible unenforceability of any part of this Plan, or other matters deemed appropriate by it.

4.    The Committee may establish from time to time such regulations, provisions, and procedures within the terms of this Plan as, in its opinion, may be advisable in the administration of this Plan.

5.    The Committee may designate the Secretary of the Company or other employees of the Company to assist the Committee in the administration of this Plan and may grant authority to such persons to execute documents on behalf of the Committee.

ARTICLE C -- Participation.

The Committee shall select those employees of the Company and its subsidiaries who, in the opinion of the Committee, have demonstrated a capacity for contributing in a substantial manner to the success of such companies and shall determine the number of shares of the Common Stock of the Company to be transferred under this Plan subject to such conditions or restrictions as the Committee may determine and the number of shares with respect to which stock options or stock appreciation rights will be granted. The Committee may consult with the Chief Executive, but nevertheless the Committee has the full authority to act, and the Committee's actions shall be final.

ARTICLE D -- Limitation on Number of Shares for the Plan.

1.    Unless otherwise authorized by the shareholders, the maximum aggregate number of shares available for award under this Plan for each calendar year the Plan is in effect shall be one percent (1%) of the total issued shares of Common Stock of the Company as of June 30 of the immediately preceding fiscal year.

2.    Any of the authorized shares may be used in respect of any of the types of awards described in this Plan, except that no more than twenty-five percent (25%) of the authorized shares in any calendar year may be issued as restricted or unrestricted stock and no more than 50,000,000 of the authorized shares during the term of the Plan may be issued as incentive stock options.

3.    Any authorized shares not used in a calendar year shall be available for awards under this Plan in succeeding calendar years.

ARTICLE E -- Shares Subject to Use Under the Plan.

1.    The shares to be delivered by the Company upon exercise of stock options or stock appreciation rights shall be either authorized but unissued shares or treasury shares, as determined by the Board. In the case of redemption of stock appreciation rights by one of the Company's subsidiaries, such shares shall be shares acquired by that subsidiary.

2.    For purposes of this Plan, restricted or unrestricted stock awarded under the terms of this Plan shall be authorized but unissued shares, treasury shares, or shares acquired for purposes of the Plan by the Company or a subsidiary, as determined by the Board.

ARTICLE F -- Stock Options and Stock Appreciation Rights.

1.    In addition to such other conditions as may be established by the Committee, in consideration of the granting of stock options or stock appreciation rights under the terms of this Plan, the recipient agrees as follows:

(a)    The right to exercise any stock option or stock appreciation right shall be conditional upon certification by the recipient at time of exercise that the recipient intends to remain in the employ of the Company or one of its subsidiaries (except in cases of retirement, disability or Special Separation as defined in section 6 of Article G) for at least one (1) year following the date of the exercise of the stock option or stock appreciation right, and,

(b)    In order to better protect the goodwill of the Company and its subsidiaries and to prevent the disclosure of the Company's or it subsidiaries' trade secrets and confidential information and thereby help insure the long-term success of the business, the recipient, without prior written consent of the Company, will not engage in any activity or provide any services, whether as a director, manager, supervisor, employee, adviser, consultant or otherwise, for a period of three (3) years following the date of the recipient's termination of employment with the Company (except for terminations of employment resulting from retirement or Special Separation), in connection with the manufacture, development, advertising, promotion, or sale of any product which is the same as or similar to or competitive with any products of the Company or its subsidiaries (including both existing products as well as products known to the recipient, as a consequence of the recipient's employment with the Company or one of its subsidiaries, to be in development):

		
	(1)
	with respect to which the recipient's work has been directly concerned at any time during the two (2) years preceding termination of employment with the Company or one of its subsidiaries or

		
	(2)
	with respect to which during that period of time the recipient, as a consequence of the recipient's job performance and duties, acquired knowledge of trade secrets or other confidential information of the Company or its subsidiaries.

For purposes of this section, it shall be conclusively presumed that recipients have knowledge of information they were directly exposed to through actual receipt or review of memos or documents containing such information, or through actual attendance at meetings at which such information was discussed or disclosed.

(c)    The provisions of this Article are not in lieu of, but are in addition to the continuing obligation of the recipient (which recipient hereby acknowledges) to not use or disclose the Company's or its subsidiaries' trade secrets and confidential information known to the recipient until any particular trade secret or confidential information become generally known (through no fault of the recipient), whereupon the restriction on use and disclosure shall cease as to that item. Information regarding products in development, in test marketing or being marketed or promoted in a discrete geographic region, which information the Company or one of its subsidiaries is considering for broader use, shall not be deemed generally known until such broader use is actually commercially implemented. As used in this Article, "generally known" means known throughout the domestic U. S. industry or, in the case of recipients who have job responsibilities outside of the United States, the appropriate foreign country or countries' industry.

(d)    By acceptance of any offered stock option or stock appreciation rights granted under the terms of this Plan, the recipient acknowledges that if the recipient were, without authority, to use or disclose the Company's or any of its subsidiaries' trade secrets or confidential information or threaten to do so, the Company or one of its subsidiaries would be entitled to injunctive and other appropriate relief to prevent the recipient from doing so. The recipient acknowledges that the harm caused to the Company by the breach or anticipated breach of this Article is by its nature irreparable because, among other things, it is not readily susceptible of proof as to the monetary harm that would ensue. The recipient consents that any interim or final equitable relief entered by a court of competent jurisdiction shall, at the request of the Company or one of its subsidiaries, be entered on consent and enforced by any court having jurisdiction over the recipient, without prejudice to any rights either party may have to appeal from the proceedings which resulted in any grant of such relief.

(e)    If any of the provisions contained in this Article shall for any reason, whether by application of existing law or law which may develop after the recipient's acceptance of an offer of the granting of stock appreciation rights or stock options, be determined by a court of competent jurisdiction to be overly broad as to scope of activity, duration, or territory, the recipient agrees to join the Company or any of its subsidiaries in requesting such court to construe such provision by limiting or reducing it so as to be enforceable to the extent compatible with then applicable law. If any one or more of the terms, provisions, covenants, or restrictions of this Article shall be determined by a court of competent jurisdiction to be invalid, void or unenforceable, then the remainder of the terms, provisions, covenants, and restrictions of this Article shall remain in full force and effect and shall in no way be affected, impaired, or invalidated.

2.    The fact that an employee has been granted a stock option or a stock appreciation right under this Plan shall not limit the right of the employer to terminate the recipient's employment at any time. The Committee is authorized to suspend or terminate any outstanding stock option or stock appreciation right for actions taken prior to termination of employment if the Committee determines the recipient has acted significantly contrary to the best interests of the Company.

3.    More than one stock option or stock appreciation right may be granted to any employee under this Plan but the maximum number of shares with respect to which stock options or stock appreciation rights may be granted to any employee in any calendar year shall not exceed five percent (5%) of the number of shares which can be issued or transferred annually hereunder.

4.    The aggregate fair market value (determined at the time when the incentive stock option is exercisable for the first time by an employee during any calendar year) of the shares for which any employee may be granted incentive stock options under this Plan and all other stock option plans of the Company and its subsidiaries in any calendar year shall not exceed $100,000 (or such other amount as reflected in the limits imposed by Section 422(d) of the Internal Revenue Code of 1986, as it may be amended from time to time).

5.    If the Committee grants incentive stock options, all such stock options shall contain such provisions as permit them to qualify as "incentive stock options" within the meaning of Section 422 of the Internal Revenue Code of 1986, as may be amended from time to time.

6.    With respect to stock options granted in tandem with or parallel to stock appreciation rights, the exercise of either such stock options or such stock appreciation rights will result in the simultaneous cancellation of the same number of tandem or parallel stock appreciation rights or stock options, as the case may be.

7.    The exercise price for all stock options and stock appreciation rights shall be established by the Committee at the time of their grant and shall be not less than one hundred percent (100%) of the fair market value of the Common Stock of the Company on the date of grant.

ARTICLE G -- Exercise of Stock Options and Stock Appreciation Rights.

1.    All stock options and stock appreciation rights granted hereunder shall have a maximum life of no more than fifteen (15) years from the date of grant; provided, however, that any stock options or stock appreciation rights with a life of more than ten (10) years from the date of grant that have been conditionally granted to the Chief Executive or to any other executive officer subject to the provisions of Section 162(m) of the Internal Revenue Code and subject to taxation under United States law, as it may be amended from time to time, prior to the annual meeting of shareholders scheduled for October 12, 1999 shall automatically be canceled effective October 12, 1999 if the shareholders do not adopt a resolution at such annual meeting approving grants to such officers with a maximum life of up to fifteen (15) years from the date of grant.

2.    No stock options or stock appreciation rights shall be exercisable within one (1) year from their date of grant, except in the case of the death of the recipient.

3.    During the lifetime of the recipient, stock options and stock appreciation rights may be exercised only by the recipient personally, or, in the event of the legal incompetence of the recipient, by the recipient's duly appointed legal guardian.

4.    In case a recipient of stock options or stock appreciation rights ceases to be an employee of the Company or any of its subsidiaries while holding an unexercised stock option or stock appreciation right:

(a)    Any unexercisable portions thereof are then void, except in the case of: (1) death of the recipient; (2) any Special Separation (as defined in section 6 of this Article G) that occurs more than six months from the date the options were granted; or (3) any option as to which the Committee has waived, at the time of grant, the provisions of this Article G, paragraph 4(a) pursuant to the authority granted by Article B, paragraph 3.

(b) Any exercisable portions thereof are then void, except in the case of death, retirement in accordance with the provisions of any appropriate profit sharing or retirement plan of the Company or any of its subsidiaries, or Special Separation (as defined in section 6 of this Article G) of the recipient.

5.    In the case of the death of a recipient of stock options or stock appreciation rights while an employee of the Company or any of its subsidiaries, the persons to whom the stock options or stock appreciation rights have been transferred by will or the laws of descent and distribution shall have the privilege of exercising remaining stock options, stock appreciation rights or parts thereof, whether or not exercisable on the date of death of such employee, at any time prior to the expiration date of the stock options or stock appreciation rights.

6.    Termination of employment under the permanent disability provision of any appropriate profit sharing or retirement plan of the Company or any of its subsidiaries shall be deemed the same as retirement. Special Separation means any termination of employment, except a termination for cause or a voluntary resignation that is not initiated or encouraged by the Company, that occurs prior to the time a recipient is eligible to retire. The death of a recipient of stock options or stock appreciation rights subsequent to retirement or Special Separation shall not render exercisable stock options or stock appreciation rights which were unexercisable at the time of the retirement or Special Separation. The persons to whom the exercisable stock options or stock appreciation rights have been transferred by will or the laws of descent and distribution shall have the privilege of exercising such remaining stock options, stock appreciation rights or parts thereof, at any time prior to the expiration date of the stock options or stock appreciation rights.

7.    Stock options and stock appreciation rights are not transferable other than by will or by the laws of descent and distribution. For the purpose of exercising stock options or stock appreciation rights after the death of the recipient, the duly appointed executors and administrators of the estate of the deceased recipient shall have the same rights with respect to the stock options and stock appreciation rights as legatees or distributees would have after distribution to them from the recipient's estate.

8.    Upon the exercise of stock appreciation rights, the recipient shall be entitled to receive a redemption differential for each such stock appreciation right which shall be the difference between the then fair market value of one share of the Common Stock of the Company and the exercise price of one stock appreciation right then being exercised. In the case of the redemption of stock appreciation rights by a subsidiary of the Company not located in the United States, the redemption differential shall be calculated in United States dollars and converted to the appropriate local currency on the exercise date. As determined by the Committee, the redemption differential may be paid in cash, Common Stock of the Company to be valued at its fair market value 

on the date of exercise, any other mode of payment deemed appropriate by the Committee or any combination thereof. The number of shares with respect to which stock appreciation rights are being exercised shall not be available for granting future stock options or stock appreciation rights under this Plan.

9.    The Committee may, in its sole discretion, permit a stock option which is being exercised either (a) by an optionee whose retirement is imminent or who has retired or (b) after the death of the optionee, to be surrendered, in lieu of exercise, for an amount equal to the difference between the stock option exercise price and the fair market value of shares of the Common Stock of the Company on the day the stock option is surrendered, payment to be made in shares of the Company's Common Stock which are subject to this Plan valued at their fair market value on such date, cash, or a combination thereof, in such proportion and upon such terms and conditions as shall be determined by the Committee. The difference between the number of shares subject to stock options so surrendered and the number of shares, if any, issued upon such surrender shall represent shares which shall not be available for granting future stock options under this Plan.

10.    Time spent on leave of absence shall be considered as employment for the purposes of this Plan. Leave of absence means any period of time away from work granted to any employee by his or her employer because of illness, injury, or other reasons satisfactory to the employer.

11.    The Company reserves the right from time to time to suspend the exercise of any stock option or stock appreciation right where such suspension is deemed by it necessary or appropriate for corporate purposes. No such suspension shall extend the life of the stock option or stock appreciation right beyond its expiration date, and in no event will there be a suspension in the five (5) calendar days immediately preceding the expiration date.

ARTICLE H -- Payment for Stock Options.

Upon the exercise of a stock option, payment in full of the exercise price shall be made by the optionee. As determined by the Committee, the stock option exercise price may be paid for by the optionee either in cash, shares of the Common Stock of the Company to be valued at their fair market value on the date of exercise, a combination thereof, or such other method as determined by the Committee.

ARTICLE I -- Transfer of Shares.

1.    The Committee may transfer Common Stock of the Company under the Plan subject to such conditions or restrictions, if any, as the Committee may determine. The conditions and restrictions may vary from time to time and with respect to particular employees or group of employees and may be set forth in agreements between the Company and the employee or in the awards of stock to them, all as the Committee determines. It is contemplated that the conditions and restrictions established by the Committee will be consistent with the objectives of this Plan and may be of the following types. In giving these examples, it is not intended to restrict the Committee's authority to impose other restrictions or conditions, or to waive restrictions or conditions under circumstances deemed by the Committee to be appropriate and not contrary to the best interests of the Company.

(a)        Restrictions

The employee will not be able to sell, pledge, or dispose of the shares during a specified period except in accordance with the agreement or award. Such restrictions will lapse either after a period of, for example, five years, or in fifteen or fewer annual installments following retirement or termination of employment, as the Committee from time to time may determine. However, upon the transfer of shares subject to restrictions, an employee will have all incidents of ownership in the shares, including the right to dividends (unless otherwise restricted by the Committee), to vote the shares, and to make gifts of them to family members (still subject to the restrictions).

(b)        Lapse of Restrictions

In order to have the restrictions lapse, an employee may be required to continue in the employ of the Company or a subsidiary for a prescribed period of time. Exemption from this requirement may be prescribed in the case of death, disability, or retirement, or as otherwise prescribed by the Committee.

ARTICLE J -- Adjustments.

In the event of any future reorganization, recapitalization, stock split, stock dividend, combination of shares, merger, consolidation, rights offering, share exchange, reclassification, distribution, spin-off or other change affecting the corporate structure, capitalization or Common Stock of the Company occurring after the date of approval of the Plan by the Company's shareholders, 

(i) the amount of shares authorized to be issued under the Plan and (ii) the number of shares and/or the exercise prices covered by outstanding stock options and stock appreciation rights shall be adjusted appropriately and equitably to prevent dilution or enlargement of rights under the Plan. Following any such change, the term "Common Stock" shall be deemed to refer to such class of shares or other securities as may be applicable.

ARTICLE K -- Additional Provisions.

1.    The Board may, at any time, repeal this Plan or may amend it from time to time except that no such amendment may amend this paragraph, increase the annual aggregate number of shares subject to this Plan, reduce the price at which stock options or stock appreciation rights may be granted, exercised, or surrendered, alter the class of employees eligible to receive stock options, or increase the percentage of shares authorized to be transferred as restricted or unrestricted stock. The recipient of awards under this Plan and the Company shall be bound by any such amendments as of their effective dates, but if any outstanding stock options or stock appreciation rights are affected, notice thereof shall be given to the holders of such stock options and stock appreciation rights and such amendments shall not be applicable to such holder without his or her written consent. If this Plan is repealed in its entirety, all theretofore granted unexercised stock options or stock appreciation rights shall continue to be exercisable in accordance with their terms and shares subject to conditions or restrictions transferred pursuant to this Plan shall continue to be subject to such conditions or restrictions.

2.    In the case of an employee of a subsidiary company, performance under this Plan, including the transfer of shares of the Company, may be by the subsidiary. Nothing in this Plan shall affect the right of the Company or any subsidiary to terminate the employment of any employee with or without cause. None of the participants, either individually or as a group, and no beneficiary or other person claiming under or through any participant, shall have any right, title, or interest in any shares of the Company purchased or reserved for the purpose of this Plan except as to such shares, if any, as shall have been granted or transferred to him or her. Nothing in this Plan shall preclude the issuance or transfer of shares of the Company to employees under any other plan or arrangement now or hereafter in effect.

3.    "Subsidiary" means any company in which greater than fifty percent (50%) of the total combined voting power of all classes of stock is owned, directly or indirectly, by the Company. In addition, the Board may designate for participation in this Plan as a "subsidiary," except for the granting of incentive stock options, those additional companies affiliated with the Company in which the Company's direct or indirect stock ownership is less than fifty percent (50%) of the total combined voting power of all classes of such company's stock.

4.    Notwithstanding anything to the contrary in the this Plan, stock options and stock appreciation rights granted hereunder shall vest immediately and any conditions or restrictions on Common Stock shall lapse upon a “Change in Control.” A “Change in Control” shall mean the occurrence of any of the following:

		
	(a)    
	An acquisition (other than directly from the Company) of any voting securities of the Company (the "Voting Securities") by any "Person" (as the term person is used for purposes of Section 13(d) or 14(d) of the Exchange Act), immediately after which such Person has "Beneficial Ownership" (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent (20%) or more of the then outstanding Shares or the combined voting power of the Company's then outstanding Voting Securities; provided, however, in determining whether a Change in Control has occurred pursuant to this Section 4(a), Shares or Voting Securities which are acquired in a "Non-Control Acquisition" (as hereinafter defined) shall not constitute an acquisition which would cause a Change in Control. A "Non-Control Acquisition" shall mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained by (A) the Company or (B) any corporation or other Person of which a majority of its voting power or its voting equity securities or equity interest is owned, directly or indirectly, by the Company (for purposes of this definition, a "Related Entity"), (ii) the Company or any Related Entity, or (iii) any Person in connection with a "Non-Control Transaction" (as hereinafter defined);

		
	(b)
	The individuals who, as of July 11, 2000 are members of the Board (the "Incumbent Board"), cease for any reason to constitute at least half of the members of the Board; or, following a Merger (as hereinafter defined) which results in a Parent Corporation (as hereinafter defined), the board of directors of the ultimate Parent Corporation; provided, however, that if the election, or nomination for election by the Company's common stockholders, of any new director was approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of this Plan, be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of either an actual or threatened "Election Contest" (as described in Rule 14a-11 promulgated under the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a "Proxy Contest") including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or

(c)    The consummation of:

		
	(i)
	A merger, consolidation or reorganization with or into the Company or in which securities of the Company are issued (a “Merger”), unless such Merger is a "Non-Control Transaction." A "Non-Control Transaction" shall mean a Merger where:

		
	(A)
	the stockholders of the Company, immediately before such Merger own directly or indirectly immediately following such Merger at least fifty percent (50%) of the combined voting power of the outstanding voting securities of (x) the corporation resulting from such Merger (the "Surviving Corporation") if fifty percent (50%) or more of the combined voting power of the then outstanding voting securities of the Surviving Corporation is not Beneficially Owned, directly or indirectly by another Person (a "Parent Corporation"), or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation;

		
	(B)
	the individuals who were members of the Incumbent Board immediately prior to the execution of the agreement providing for such Merger constitute at least half of the members of the board of directors of (x) the Surviving Corporation, if there is no Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation; and

		
	(C)
	no Person other than (1) the Company, (2) any Related Entity, (3) any employee benefit plan (or any trust forming a part thereof) that, immediately prior to such Merger was maintained by the Company or any Related Entity, or (4) any Person who, immediately prior to such merger, consolidation or reorganization had Beneficial Ownership of twenty percent (20%) or more of the then outstanding Voting Securities or Shares, has Beneficial Ownership of twenty percent (20%) or more of the combined voting power of the outstanding voting securities or common stock of (x) the Surviving Corporation if there is no Parent Corporation, or (y) if there is one or more Parent Corporations, the ultimate Parent Corporation;

		
	(ii)
	A complete liquidation or dissolution of the Company; or

		
	(iii)
	The sale or other disposition of all or substantially all of the assets of the Company to any Person (other than a transfer to a Related Entity or under conditions that would constitute a Non-Control Transaction with the disposition of assets being regarded as a Merger for this purpose or the distribution to the Company's stockholders of the stock of a Related Entity or any other assets).

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely because any Person (the "Subject Person") acquired Beneficial Ownership of more than the permitted amount of the then outstanding Shares or Voting Securities as a result of the acquisition of Shares or Voting Securities by the Company which, by reducing the number of Shares or Voting Securities then outstanding, increases the proportional number of shares Beneficially Owned by the Subject Persons, provided that if a Change in Control would occur (but for the operation of this sentence) as a result of the acquisition of Shares or Voting Securities by the Company, and after such share acquisition by the Company, the Subject Person becomes the Beneficial Owner of any additional Shares or Voting Securities which increases the percentage of the then outstanding Shares or Voting Securities Beneficially Owned by the Subject Person, then a Change in Control shall occur.

ARTICLE L -- Consent.

Every recipient of a stock option, stock appreciation right, or transfer of shares pursuant to this Plan shall be bound by the terms and provisions of this Plan and of the stock option, stock appreciation right, or transfer of shares agreement referable thereto, and the acceptance of any stock option, stock appreciation right, or transfer of shares pursuant to this Plan shall constitute a binding agreement between the recipient and the Company and its subsidiaries and any successors in interest to any of them. This Plan shall be governed by and construed in accordance with the laws of the State of Ohio, United States of America.

ARTICLE M -- Duration of Plan.

This Plan will terminate on July 14, 2002 unless a different termination date is fixed by the shareholders or by action of the Board of Directors, but no such termination shall affect the prior rights under this Plan of the Company (or any subsidiary) or 

of anyone to whom stock options or stock appreciation rights were granted prior thereto or to whom shares have been transferred prior to such termination.

ADDITIONAL INFORMATION

1.    Shares Awarded as a Portion of Remuneration

Any shares of Common Stock of the Company awarded as a portion of a participant's remuneration shall be valued at not less than one hundred percent (100%) of the fair market value of the Company's Common Stock on the date of the award. These shares may be subject to such conditions or restrictions as the Committee may determine, including a requirement that the participant remain in the employ of the Company or one of its subsidiaries for a set period of time, or until retirement. Failure to abide by any applicable restriction will result in forfeiture of the shares.

2.    Tax Effects

Incentive Stock Options

With regard to tax effects which may accrue to the optionee, counsel advises that if the optionee has continuously been an employee from the time an option has been granted until at least three months before it is exercised, under existing law no taxable income results to the optionee from the exercise of an incentive stock option at the time of exercise. However, the spread at exercise is an "adjustment" item for alternative minimum tax purposes.

Any gain realized on the sale or other disposition of stock acquired on exercise of an incentive stock option is considered as long-term capital gain for tax purposes if the stock has been held more than two years after the date the option was granted and more than one year after the date of exercise of the option. If the stock is disposed of within one year after exercise, the lesser of any gain on such disposition or the spread at exercise (i.e., the excess of the fair market value of the stock on the date of exercise over the option price) is treated as ordinary income, and any appreciation after the date of exercise is considered long-term or short-term capital gain to the optionee depending on the holding period prior to sale. However, the spread at exercise (even if greater than the gain on the disposition) is treated as ordinary income if the disposition is one on which a loss, if sustained, is not recognized--e.g., a gift, a "wash" sale or a sale to a related party. The amount of ordinary income recognized by the optionee is treated as a tax deductible expense to the Company. No other amount relative to an incentive stock option is a tax deductible expense to the Company.

Nonstatutory Stock Options

With regard to tax effects which may accrue to the optionee, counsel advises that under existing tax law gain taxable as ordinary income to the optionee is deemed to be realized at the date of exercise of the option, the gain on each share being the difference between the market price on the date of exercise and the option price. This amount is treated as a tax deductible expense to the Company at the time of the exercise of the option. Any appreciation in the value of the stock after the date of exercise is considered a long-term or short-term capital gain to the optionee depending on whether or not the stock was held for the appropriate holding period prior to sale.

Stock Appreciation Rights

With regard to tax effects which may accrue to the recipient, counsel advises that "United States persons," as defined in the Internal Revenue Code of 1986 (the "I.R.C."), must recognize ordinary income as of the date of exercise equal to the amount paid to the recipient, i.e., the difference between the grant price and the value of the shares on the date of exercise.

Shares Awarded as a Portion of Remuneration

With regard to tax effects which may accrue to the recipient, counsel advises that "United States persons" as defined in the Internal Revenue Code of 1986 (the "I.R.C."), must recognize ordinary income in the first taxable year in which the recipient's rights to the stock are transferable or are not subject to a substantial risk of forfeiture, whichever is applicable. Recipients who are "United States persons" may also elect to include the income in their tax returns for the taxable year in which they receive the shares by filing an election to do so with the appropriate office of the Internal Revenue Service within 30 days of the date the shares are transferred to them.

The amount includable in income is the fair market value of the shares as of the day the shares are transferable or not subject to a substantial risk of forfeiture, whichever is applicable; if the recipient has elected to include the income in the year in which the shares are received, the amount of income includable is the fair market value of the shares at the time of transfer.

For non-United States persons, the time when income is realized, its measurement and its taxation, will depend on the laws of the particular countries in which the recipients are residents and/or citizens at the time of transfer or when the shares are first transferable and not subject to a substantial risk of forfeiture, as the case may be. "United States persons" who receive shares awarded as a portion of remuneration may also have tax consequences with respect to the receipt of shares or the expiration of restrictions or substantial risk of forfeiture on such shares under the laws of the particular country other than the United States of which such person is a resident or citizen.

Notwithstanding the above advice received by the Company, it is each individual recipient's responsibility to check with his or her personal tax adviser as to the tax effects and proper handling of stock options, stock appreciation rights and Common Stock acquired. The above advice relates specifically to the U.S. consequences of stock options, stock appreciation rights and Common Stock acquired, including the U.S. consequences to "United States persons" whether or not resident in the U.S. In addition to U.S. tax consequences, for all persons who are not U.S. residents, the time when income, if any, is realized, the measurement of such income and its taxation will also depend on the laws of the particular country other than the U.S. of which such persons are resident and/or citizens at the time of grant or the time of exercise, as the case may be.

The Plan is not subject to the qualification requirements of Section 401(a) of the I.R.C.

3.    Employee Retirement Income Security Act of 1974

The Plan is not subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"), as amended.

4.    Incorporation of Certain Documents by Reference

The following documents filed by the Company with the Securities and Exchange Commission (File No. 1-434) pursuant to the 1934 Act are incorporated into this document by reference:

1.    The Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2001;
2.    The Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2001; and
3.    All other documents filed by the Company pursuant to Sections 13(a), 13(c), 14 or 15(d) of the 1934 Act after
the date of this Prospectus and prior to the filing of a post-effective amendment which indicates that all securities offered have been sold or which deregisters all securities then remaining unsold.

The Company will provide without charge to each participant in the Plan, upon oral or written request, a copy of any or all of these documents other than exhibits to such documents, unless such exhibits are specifically incorporated by reference into such documents. In addition, the Company will provide without charge to such participants a copy of the Company's most recent annual report to shareholders, proxy statement, and other communications distributed generally to security holders of the Company. Requests for such copies should be directed to Mr. James C. Ashley, Manager, Shareholder Services, The Procter & Gamble Company, P.O. Box 5572, Cincinnati, Ohio 45201, (513) 983-3413.

5.    Additional Information

Additional information about the Plan and its administrators may be obtained from Mr. Terry L. Overbey, Secretary, The Procter & Gamble Company, One Procter & Gamble Plaza, Cincinnati, Ohio 45202, (513) 983-4463.Exhibit

EXHIBIT (10-3)

The Procter & Gamble Executive Group Life Insurance Policy

1997 Policy

MEMORANDUM OF UNDERSTANDING
This memorandum dated as of December 30, 1997, reflects the understanding and agreement between The Procter & Gamble Company as policyholder (“Policyholder/P&G”) of a Flexible Premium Group Variable Life Insurance Policy (the “Policy”) and Metropolitan Life Insurance Company (“Carrier/Metropolitan”).

Policyholder and Carrier understand and agree that the following is in no way inconsistent with the Policy:

Qualification of the Policy as Life Insurance (IRC Sections 7702 and 101)

Assuming insurable interest by the Policyholder, Carrier will administer the Policy to qualify as a life insurance contract under Section 7702 of the Internal Revenue Code (the “IRC”), to have a bona fide element of risk, and to provide death benefits under the Policy that will be excludible from taxable income to the extent provided under IRC section 101(a). On or before the date of this memorandum, Carrier has provided an opinion from outside counsel addressed to Policyholder that the Policy complies with the requirements of section 7702.

Qualification of the Policy as a Variable Contract

Subject to the conditions stated below, Carrier will administer the Policy to (a) be a “variable contract” within the meaning of Section 817(d) of the Internal Revenue Code and (b) be based on one or more segregated asset accounts, the assets of which are owned by Carrier and are adequately diversified, as required by Internal Revenue Code Section 817(h).

Policyholder may determine the percentage of premium payments and/or policy cash value that is allocated to a specific separate account and will have the right to reallocate amounts among the separate accounts as provided in the Policy. The Policyholder shall not have the right to manage the assets of the separate accounts or to direct the purchase or sale of specific investment assets and will not communicate directly or in any manner with respect to these separate accounts with any of the managers or sub investment managers of the separate accounts.

Metropolitan will be the investment manager for any Separate Accounts under this Policy. Separate Accounts may have sub-investment managers chosen by Metropolitan.

The Policy will state that the assets held in each Separate Account will be maintained solely for the liabilities of the participants in that Separate Account. The Carrier will make provision that the income, gains and losses of each Separate Account shall be credited to or charged against that Separate Account's assets and none of the assets held in a Separate Account will be charged as chargeable with liabilities arising out of any other business of the Carrier or used for purposes unrelated to the terms and provisions of that Separate Account. On or before the date of this memorandum, Carrier has provided a letter from its counsel addressed to Policyholder on these issues.

Underwriting
Based on the census in the November 11, 1998 illustrations, current participants who are domestic actives and retirees will be covered under Carrier's Guaranteed Issue program for the plan benefit and cost recovery amounts in effect on the date the Policy is issued.

Future new participants will be subject to the following “Active at Work” criteria:

not been absent from work due to illness or medical treatment for a period of more than 5 consecutive days in the last 3 months; and

are actively at work, full time performing all duties of regular occupation, at customary place of employment.

The guaranteed issue limit upon entry into the plan by new participants will be $2 million. Based on the current plan design, death benefits under the Policy may be increased without additional underwriting:

by reason of promotional increases verified by P&G, and

by up to 15% per year (with any unused portion of such increment rolling forward for five years on a cumulative basis) to reflect compensation (salary and bonus) increases,

subject to a lifetime guaranteed issue limit of $5,000,000 per life, which limit will be reviewed at least every five years and (absent retention, reinsurance or adverse selection constraints) adjusted to accommodate anticipated plan benefit and cost recovery amounts. Amounts in excess of the guaranteed issue limits will, at Carrier's request, be subject to underwriting.

Carrier will not deny claims by reason of the suicide exclusion provision of the Policy. Carrier acknowledges, accepts and agrees to be bound by consents to insurance, beneficiary designations and assignments in effect under P&G's executive life insurance program.

Cost of Term Insurance Charges

The Cost of Term Insurance charges (“COI”) for the current active population and new entrants (meeting the “active at work” requirements) will be based on 90% of Carrier's current Corporate Universal Life Guaranteed Issue, Sex Distinct, Unismoker rates. The current retirees will have rates equal to 120% of Carrier's Corporate Universal Life Guaranteed Issue, Sex Distinct, Unismoker rates.

P & G will have COI rates equal to the foregoing unless Carrier's Corporate Universal Life Guaranteed Issue, Sex Distinct, Unismoker rates are increased to the maximum rates of 1980 CSO table (Table A for males and Table G for females). Only at that time will the rates under this Policy for actives and new entrants be increased to up to 100% of Corporate Universal Life Guaranteed Issue, Sex Distinct, Unismoker rates, with a corresponding change in the COI for current retirees. Any future changes in COI rates will be determined based on changes in Corporate Universal Life Guaranteed Issue Rates. Metropolitan shall inform the Policyholder in writing at least 60 days in advance of any changes in such rates.

The Guaranteed Issue, Sex Distinct COI rates are the rates that Metropolitan charges in Individual Executive Pooled Policies which are selected by the Guaranteed Issue Underwriting procedure and are filed with the state Insurance Departments. The Corporate Universal Life Product is one of those policies included in this pool. Any changes in these rates are required to be filed with the state Insurance Departments and must be justifiable in terms of experience of the Guaranteed Issue mortality pool. Therefore, the insured employees of this Policy join the mortality pool which is the aggregate of all insured executives who are selected by the Guaranteed Issue Underwriting procedure. The future determination of the COI of this pool is by the mortality experience of the pool in total and is not by the mortality experience of each case or a subgroup of insured lives of the pool. Any changes in these rates must apply to all policies which are charged the Guaranteed Issue COI rates, including the Policy.

Upon reasonable notice from Policyholder, Metropolitan will develop COI charges, retention and retrospective deductions based on the demographics of insured lives in the plan at that time.

The guaranteed maximum COI will never exceed those based on the 1980 CSO Table (Table A for males and Table G for females).

Enhanced Policy Administration

At Policyholder's request, Carrier will provide enhanced administrative services with respect to the Policy. Such services will include:

A.    Program Analysis

1. Prepare feasibility studies and recommendations of various funding level alternatives.

2. Provide financial analysis of the program.

B.    Program Establishment

1. Provide specimen documents to and reviewing specimen documents with Policyholder's legal counsel and auditors.

2. Prepare financial projections and, where applicable, proxy statement text with respect to the program.

3. Coordinate and establish program implementation and administration, and set up records and other systems for the program.

4. Process section 1035 exchange.

C.    Program Documentation. Provide program documentation, including:

1. Program explanation (including original assumptions).

2. Insurance schedule.

3. Funding assumptions and corporate composite projections.

4. Participant census.

5. Individual participant information.

6. Definition of Payment procedures.

a. Premiums

b. Death benefits

c. Withdrawals/surrenders

d. Loans

D.    Program Servicing

1. Provide periodic reports on program and policy financial status.

2. Provide information for possible program modifications.

3. Provide ongoing program coordination.

4. Compile updated program data with assistance from Policyholder.

a. New participants

b. Terminations

c. Retirees

d. Deaths

5. Determine current and ongoing funding requirements.

6. Assist with enrollment of new participants.

7. Prepare detailed annual reviews of program experience to include:

a. Corporate composite projections

b. Program participant census including insurance amount

8. Compile composite billing for program.

9. Timely provide assistance to accountants and auditors for reporting program transactions on financial statements and or tax return and other reports or analyses as reasonably required from time to time by Policyholder.

10. Advise the Policyholder of transactions necessary or desirable to meet program goals and commitments.

11. Execute quarterly social security sweeps.

12. Annually determine and provide to Policyholder the amount of imputed taxable income for each participant.

13. Conduct annual performance review.

E.    Performance Criteria

Carrier's enhanced policy administration will be subject to performance criteria mutually agreed by Carrier and Policyholder from time to time.

F.    Termination of Enhanced Policy Administration

Policyholder may terminate Carrier's enhanced policy administration at any time on written notice.

Policy Expenses

Front End Load Charges

1.    State Premium Tax - state premium tax will be handled as a pass-through. Taxes will be assessed based upon the Insureds' state of residence as of the date of issue of the Policy.

2.    Policy DAC Tax -1.20%

3.    Other Charge - if enhanced policy administration is in effect, a one time set-up charge of $100,000 in the aggregate for all Policies in the program, in the first policy year.

Mortality and Expense (M&E) Charge

The M&E risk charge is assessed against the average monthly value of the total policy cash value in all separate accounts and is deducted monthly. The following M&E risk charge is based upon a 4-tier sliding scale and applies for any period when enhanced policy administration is in effect:
	
				
	 
	First $50 million
	0.250
	%

	 
	Next $200 million
	0.150
	%

	 
	Next $250 million
	0.125
	%

	 
	Over $500 million
	0.100
	%

Under the foregoing schedule, Carrier will not take into consideration the combined assets in both policies (VEBA Plan and the Split Dollar Plan) for purposes of calculating the monthly M&E expenses for this Policy. Carrier would, however, take the assets under this Policy into consideration when determining the M&E under the VEBA policy.

For any period when enhanced policy administration is not in effect, the M&E risk charge is as follows:

	
				
	 
	First $250 million
	1.750
	%

	 
	Next $500 million
	0.150
	%

	 
	Next $250 million
	0.125
	%

	 
	Over $1000 million
	0.100
	%

Under this schedule, Carrier will take into consideration the combined assets on both policies (VEBA Plan and the Split Dollar Plan) in calculating the monthly M&E risk charge for both policies.

Investment Management Fees

Investment management fees for each separate account are assessed against the average monthly value of the policy cash value in a separate account. In calculating the monthly fee per separate account Carrier will take into consideration the combined assets in both policies (VEBA Plan and the Split Dollar Plan) which are invested in the same separate account(s). The investment management fees for the current commingled separate accounts can be found in the Offering Memorandum.

Custody and Securities Accounting/Valuation

There are no separate charges for these functions for the commingled separate accounts. However, there are pass through charges for these functions for single customer accounts.

Policy Administration Charge

Currently, and as illustrated, the Policy Administration Charge is a per insured life charge of $5.00 per month in all policy years. The current charge may be reduced by the Carrier from time to time, and reductions in the Carrier's costs incurred to service the Policy will be commensurately reflected in the current charge. The guaranteed maximum monthly charge for administration is $5.00 per insured.

Changes in Pricing for Other Than the Cost of Insurance Charges

Carrier will not change the charges or fees related to factors under its control. Changes based on external factors may be reflected in the Policy.

For purposes of this paragraph, Carrier's profit goals and the contribution of Specialized Benefit Resources organization to overhead are not external factors. The external factors that may be reflected include (i) Federal and State legislation and state insurance statutory and regulatory changes, and (ii) after the first three policy years, increase in investment management, custody and securities accounting/valuation charges pertaining to P&G single-customer accounts by the providers of these services.

Any increase in price due to external factors will be documented and the price increase, if appropriate, will be only to recover the increased cost of the Carrier. With respect to any increase in charges pursuant to this section, P&G may audit the relevant records of Metropolitan pursuant to an appropriate nondisclosure document.

Governing Law

The validity, construction, interpretation, and effect of this memorandum of understanding and the Policy shall be governed by the laws of the state of Ohio, without regard to Ohio's choice of law rules.

Changes to this Memorandum

Except with respect to changes mandated by state and federal law and as otherwise specifically provided in this Memorandum or the Policy, this Memorandum may be changed only by mutual agreement among the affected parties.
 
Notices

Unless and until the parties give written notice otherwise, whenever this Memorandum provides for notices or consents in writing to be given by one of the parties hereto to the other, such notices or consent will be given when addressed and delivered to the following or their successors:

	
					
	(1)
	The Procter & Gamble Company
	 
	(2)
	Metropolitan Life Insurance Co.

	 
	Global Pensions
	 
	 
	Specialized Benefit Resources

	 
	Two Procter & Gamble Plaza
	 
	 
	485B Route One South, Suite 420

	 
	Cincinnati, Ohio 45202-3315
	 
	 
	Iselin, New Jersey 08830

	 
	Attn: [name]
	 
	 
	Attn:[name]

All such notices or consents must be sent by U.S. Certified Mail, Return Receipt Requested.

Agreed:

	
					
	THE PROCTER & GAMBLE COMPANY
	 
	METROPOLITAN LIFE INSURANCE COMPANY

	 
	 
	 
	 
	 

	By:
	 /s/ C. S. Clark
	 
	By:
	 /s/ John J. Ryan

	 
	 
	 
	 
	 

	 
	Group Manager Global Pensions
	 
	 
	Vice President

	 
	(Title)
	 
	 
	(Title)

	 
	 
	 
	 
	 

	 
	C.S. Clark
	 
	 
	John J. Ryan

	 
	(Print or Type Name)
	 
	 
	(Print of Type Name)

	 
	 
	 
	 
	 

	 
	Dec. 30, 1997
	 
	 
	Dec. 30, 1997

	 
	(Date)
	 
	 
	(Date)

AMENDMENT TO MEMORANDUM OF UNDERSTANDING

Any references to the Cost of Tenn Insurance charges in the Memorandum of Understanding dated December 30, 1997 should be amended to read Carrier's current Corporate Universal Life Guaranteed Issue, Unisex, Unismoke rates.

Agreed:

THE PROCTER & GAMBLE COMPANY        METROPOLITAN LIFE INSURANCE COMPANY

March 30, 1998

AMENDMENT TO MEMORANDUM OF UNDERSTANDING

The following amends the Memorandum of Understanding between The Procter & Gamble Company as policyholder (“Policyholder”) and Metropolitan Life Insurance Company (“Carrier”) dated December 30, 1997, as amended March 30, 1998.

All defined terms in this Amendment have the same meaning as in the Memorandum of Understanding.

Underwriting - this section is removed in its entirety from the Memorandum of Understanding and is substituted as follows:

New Participants
New participants eligible for insurance on or after January 1, 2009 (“New Participants”) will be covered under Group Policy 191526-G (the “New Policy”). New Participants will be subject to the following “Active at Work” criteria:

		
	•
	not been absent from work due to illness or medical treatment for a period of more than 5 consecutive days in the last 3 months; and

		
	•
	are actively at work, full time performing all duties of regular occupation, at customary place of employment.

The guaranteed issue limit upon entry into the plan by New Participants will be $2 million of Specified Face Amount.

Increases in Specified Face Amounts
Based upon current plan design and consistent with our underwriting criteria since 2002, the Specified Face Amounts may be increased without additional underwriting:

		
	•
	For Active Employees, by up to 25% per year (any unused portion will not be cumulative) to reflect compensation increases, promotional increases and corporate cost recovery amounts.

		
	•
	For Retired Employees, by up to 25% per year (any unused portion will not be cumulative) to reflect corporate cost recovery amounts.

		
	•
	For Active and Retired Employees whose compensation is not denominated in U.S. dollar, the Specified Face Amounts may be adjusted to reflect the foreign exchange rate of their home currency.

Increases in Specified Face Amount issued on a Guaranteed Issue basis will be allowed up to maximum total coverage of $5,000,000. For Active Employees, these Guaranteed Issue increases will be applicable so long as the insured meets the “Active at Work” criteria described under New Participants and is still eligible for the plan and the plan is still in effect. For Retired Employees, these Guaranteed Issue increases will be applicable if the insured is still eligible for the plan and the plan is still in effect. For the Retired Employees, these Guaranteed Issue increases are not subject to the “Active at Work” criteria described under New Participants.

Annual increases in excess of 25% will require documentation explaining the reason for the increase, in a letter endorsed by a representative of the company who has been designated by a Procter & Gamble Company Officer as an authorized signor for such purposes, for review and consideration by MetLife's underwriters and may require supporting evidence of insurability. These types of increases are subject to the Carrier's current underwriting requirements. In no instance may the total coverage in force exceed $5,000,000.

Carrier will not deny claims by reason of suicide exclusion provision of the Policy. Carrier acknowledges, accepts and agrees to be bound by consents to insurance, beneficiary designations and assignments in effect under Policyholders executive life insurance program.

2. Cost of Term Insurance
The Cost of Term Insurance charges (“COI”) for all participants under the New Policy (meeting the “Active at Work” requirements) will be based on 100% of Carrier's current Corporate Universal Life Guaranteed Issue, Unisex, Unismoke rates. The guaranteed maximum COI under the New Policy will never exceed those based on the

2001 CSO (60) Composite U ALB Table.

THE PROCTER & GAMBLE COMPANY        METROPOLITAN LIFE INSURANCE COMPANY

2009 Policy

Policyholder: The Procter & Gamble Company
Group Policy No: 191526-G
Date of Issue: January 30, 2009

In consideration of the application of the Policyholder and the payment of contributions as provided herein,

Metlife
Metropolitan Life Insurance Company
New York, New York 10166
(Herein called MetLife)

certifies that the benefits as described herein are provided under and subject to the terms and provisions of this Policy. The Schedule of Exhibits sets forth each Exhibit, which is to be attached to and made a part of this Policy.

	
				
	 /s/ Gwenn L. Carr
	 
	 /s/ Robert Henrikson
	 

	 Vice-President and Secretary
	 
	 President and Chief Executive Officer
	 

Flexible Premium Group Variable Life Insurance Policy
NON-DIVIDEND PAYING
THE BENEFITS IN THIS POLICY ARE ON A VARIABLE BASIS.
THE AMOUNT OR DURATION OF THE DEATH BENEFIT MAY BE FIXED OR VARIABLE UNDER SPECIFIED CONDITIONS.

CASH VALUES MAY INCREASE OR DECREASE IN ACCORDANCE WITH THE EXPERIENCE OF THE SEPARATE ACCOUNTS.

THE DEATH BENEFIT APPLICABLE TO EACH EMPLOYEE COVERED HEREIN MAY BE DETERMINED IN ACCORDANCE WITH THE PROVISIONS OF SECTION 12 OF THIS POLICY.

Section 1. DEFINITIONS
Section 2. ELIGIBILITY AND EFFECTIVE DATES OF INSURANCE
A. ELIGIBILITY FOR INSURANCE
B. EFFECTIVE DATES OF INSURANCE
Section 3. PLAN DEDUCTIONS
Section 4. INVESTMENT MANAGEMENT FEES
Section 5. MORTALITY AND EXPENSE RISK CHARGE
Section 6. COST OF TERM INSURANCE
Section 7. RETROSPECTIVE DEDUCTIONS
Section 8. CONTRIBUTION PAYMENTS
Section 9. FAILURE OF THE POLICYHOLDER TO MAKE CONTRIBUTION PAYMENTS
Section 10. FIXED ACCOUNT
A. VALUE
B. INTEREST RATE
Section 11. SEPARATE ACCOUNTS
A. DESCRIPTION
B. VALUE
Section 12. RIGHT TO CHANGE ALLOCATION
Section 13. DEATH BENEFIT
A. DESCRIPTION
B. MINIMUM DEATH BENEFIT
Section 14. PAYMENTS DURING AN EMPLOYEE'S LIFETIME
A. MATURITY DATE
B. PARTIAL CASH WITHDRAWAL

C. LOAN
D. LOAN REPAYMENT
E. EFFECT OF A LOAN ON THE CASH SURRENDER VALUE
F. DEFERMENT
G. RESTRICTIONS ON ACCOUNT REDUCTIONS
Section 15. POLICYHOLDER'S GENERAL RIGHTS
Section 16. RECORDS TO BE MAINTAINED
Section 17. INFORMATION TO BE FURNISHED
Section 18. ENTIRE CONTRACT
Section 19. INCONTESTABILITY; STATEMENTS
Section 20. MISSTATEMENT OF AGE
Section 21. CHANGES IN THE POLICY
Section 22. CHANGES IN POLICY COST FACTORS
Section 23. REPORTS
Section 24. RIGHT TO CHANGE THIS POLICY
Section 25. TERMINATION OF AN EMPLOYEE'S COVERAGE
Section 26. DISCONTINUANCE OF THE POLICY
Section 27. ADDITIONAL PROVISIONS
SCHEDULE OF EXHIBITS

Section 1. DEFINITIONS

1. "Policyholder" is as shown on the first page of this Group Policy.

2. "Employer" is as shown in the Policy Rider attached.

3. "This Plan" means the group insurance plan for insured Employees of the Employer under this Group Policy.

4. "Employee" means a person who is in a class designated as eligible for insurance as described in the Policy Rider attached to this Group Policy as a part hereof.

5. "Specified Face Amount of Insurance" for each Employee is the amount of insurance as filed with the records for the insurance provided under this Group Policy.

6. "Anniversary Date" is the date indicated in the Policy Rider attached.

7. "Monthly Date" means a monthly anniversary date of the Anniversary Date.

8. "Net Contribution" means the contribution received by MetLife on behalf of Employees who are covered under This Plan minus any Front End Load Charge indicated in the Policy Rider attached. The Net Contribution is allocated by the Policyholder to either the Fixed Account, the Separate Account(s), or a combination thereof.

9. "Fixed Account" is the account under this Group Policy to which MetLife will add the payments that the Policyholder allocates thereto. The Fixed Account is part of MetLife's general account.

10. "Separate Account(s)" as described in the Exhibits attached are the investment account(s) under this Group Policy to which MetLife will add the payments that the Policyholder allocates thereto.

11. "Variable Account" is the account under this Group Policy that consists of the Separate Account(s) that are described in the Exhibits attached.

12. "Policy Loan Account" is the account to which MetLife will transfer the amount of any policy loan from the Fixed Account and any Separate Account(s).

13. "Business Day" means a day on which both the New York Stock Exchange and MetLife's Home Office are open for business.

14. "Plan Year" means a period from one Anniversary Date to the following Anniversary Date.

15. "Policy Cash Value" is the sum of: (a) the total cash value in the Fixed Account; (b) the total cash value in the Variable Account; and the total cash value in the Policy Loan Account.

16. "Cash Surrender Value" is the Policy Cash Value, less any Loan and Loan Interest.

17. "Loan and Loan Interest" means the total amount of money borrowed by the Policyholder and the interest due on that borrowed amount.

18. "Account Value" means the part of the Policy Cash Value applicable to an Employee.

19. "Loan Amount" means the part of the Loan and Loan Interest applicable to an Employee.

20. "Cash Amount" means the part of a Cash Withdrawal applicable to an Employee.

21. "Cash Withdrawal" means a full or partial withdrawal of the Cash Surrender Value by the Policyholder.

Section 2. ELIGIBILITY AND EFFECTIVE DATES OF INSURANCE

A. ELIGIBILITY FOR INSURANCE

Each Employee will be eligible for insurance in accordance with the requirements of the Employer. In no event will any Employee become eligible for insurance prior to the Date of Issue.

B. EFFECTIVE DATES OF INSURANCE

Active Work Requirement

The Employee must be Actively at Work in the employ of the Employer in order for the insurance to be effective.

"Actively at Work" means that the Employee is actively at work and physically able to perform all the duties of his occupation.

MetLife reserves the right to change this provision by giving written notice of such change to the Policyholder at least 31 days prior to the date such change is to become effective.

If retirees of an Employer are insured under this Group Policy, the above active work requirement will not apply to such retirees.

Once a year on the Anniversary Date, the Policyholder may add additional Employees to This Plan. These employees must be Actively at Work on such Anniversary Date.

Section 3. PLAN DEDUCTIONS

Plan Deductions are made from each Employee's Account Value for:

the Investment Management Fees, if applicable (see Investment Management Fees below);

the Mortality and Expense Risk Charge, if applicable (see Mortality and Expense Risk Charge below);

the Administration Charge indicated in the Policy Rider attached;

the Cost of Term Insurance for each Employee (See Cost of Term Insurance below); and

the Retrospective Deduction (See Retrospective Deductions below); for the insurance applicable to each of the Employees insured under This Plan.

The Plan Deductions stated above will be charged proportionately to the Fixed Account and/or the Separate Account(s) in which the Policyholder participates. Plan Deductions are made periodically. The Mode of Plan Deduction indicated in the Policy Rider attached will be used.

Section 4. INVESTMENT MANAGEMENT FEES

If the Policyholder participates in one or more Separate Accounts an Investment Management Fee will be charged based upon the Policyholder's participation in the particular Separate Account(s).
The Investment Management Fees are indicated in the Policy Rider attached.

This fee will be deducted periodically by canceling investment units from the Separate Account(s) in which the Policyholder participates. The Mode of Plan Deduction indicated in the Policy Rider attached will be used.

Section 5. MORTALITY AND EXPENSE RISK CHARGE

If the Policyholder participates in one or more Separate Accounts the Mortality and Expense Risk Charge will be charged based upon the gross asset value of the Separate Account(s) in which the Policyholder participates. The Mortality and Expense Risk Charge are indicated in the Policy Rider attached.

This charge will be deducted periodically by canceling investment units from the Separate Account(s) in which the Policyholder participates. The Mode of Plan Deduction indicated in the Policy Rider attached will be used.

Section 6. COST OF TERM INSURANCE

The Cost of Term Insurance on the life of an Employee is equal to the term insurance rate multiplied by each $1,000 of the amount of term insurance for which the Employee is insured. Term insurance rates will be set by MetLife from time to time based on the Employee's age. The Table of Guaranteed Maximum Rates are shown below. The rates charged will never be more than the maximum rates listed in such Table.

Section 7. RETROSPECTIVE DEDUCTIONS

If the Plan Deductions for the Cost of Term Insurance for each Employee during a Plan Year, are less than the Charges applicable for that time period, a Retrospective Deduction will be made. The Retrospective Deduction will not be more than the Retrospective Deduction Percentage indicated in the Policy Rider attached multiplied by the Cost of Term Insurance. Charges will be determined by Metropolitan and will include items such as claims paid from Metropolitan's funds (including interest thereon), open and unreported claim reserves, approved claim reserves, taxes, pooling, expenses, cash flow and risk charges.

Section 8. CONTRIBUTION PAYMENTS

Planned Contributions as shown in the Policy Rider attached will be payable to MetLife, according to a mode of contribution payments that has been selected by the Policyholder.

The amount of the Planned Contributions may be changed by the Policyholder from time to time.

The Policyholder may skip Planned Contribution payments or change their frequency and amount if the Cash Surrender Value is large enough to pay the next Plan Deduction due.

LIMITS
The Policyholder's first contribution may not be less than the Planned Contribution.

Any contribution that is not a Planned Contribution is an Unplanned Contribution. Unplanned Contributions by the Policyholder cannot be less than the Minimum Unplanned Contribution indicated in the Policy Rider attached.

MetLife reserves the right not to accept an Unplanned Contribution to the Fixed Account for up to 6 months from the date a partial Cash Withdrawal is paid from the Fixed Account to the Policyholder; however MetLife will accept an Unplanned Contribution if such Contribution is needed to keep the insurance coverage in force. See the Partial Cash Withdrawal provision.

Section 9. FAILURE OF THE POLICYHOLDER TO MAKE CONTRIBUTION PAYMENTS

If an Employee's Account Value reduced by any Loan Amount is less than the Plan Deduction due for that Employee, there will be a grace period of 60 days after such date to pay an amount that will cover the Plan Deduction due for that Employee. MetLife will send the Policyholder a notice at the start of the grace period.

If MetLife does not receive a sufficient amount by the end of the grace period, the insurance applicable to such Employee will terminate. If such Employee dies during the grace period, MetLife will pay the Death Benefit applicable to such Employee minus (i) the Loan Amount for such Employee and (ii) the due and unpaid Plan Deduction applicable to such Employee.

If the Cash Surrender Value is less than the Plan Deduction due, there will be a grace period of 60 days after such date to pay an amount that will cover the Plan Deduction due. MetLife will send the Policyholder a notice at the start of the grace period.

If MetLife does not receive a sufficient amount by the end of the grace period, MetLife may discontinue this Group Policy on or after the last day of the grace period. (See the Discontinuance of the Policy provision.) If an insured Employee dies during the grace period, MetLife will pay the Death Benefit minus (i) the Loan Amount for such Employee and (ii) the due and unpaid Plan Deduction applicable to all Employees.

Section 10. FIXED ACCOUNT
A. VALUE

On the Date of Issue the cash value in the Fixed Account applicable to an Employee covered under This Plan is equal to:

1. The portion of the Net Contributions applicable to such Employee which have been paid by the Policyholder and allocated to the Fixed Account;
MINUS

2. The portion of the Plan Deduction applicable to such Employee charged to the Fixed Account on the Date of Issue.

The cash value in the Fixed Account applicable to an Employee covered under This Plan on any day after the Date of Issue is equal to:

1. The portion of the cash value in the Fixed Account applicable to such Employee on the preceding day, with interest on such 

PLUS

2. Any portion of the Net Contributions applicable to such Employee paid and allocated to the Fixed Account on that day;

PLUS

3. Any amounts applicable to such Employee transferred by the Policyholder from the Variable Account to the Fixed Account on that day;

PLUS

4. Any loan repayments applicable to such Employee allocated by the Policyholder to the Fixed Account on that day;

PLUS

5. That portion of any interest credited on outstanding loans taken by the Policyholder applicable to such Employee which is allocated to the Fixed Account on that day;

MINUS

6. Any amounts applicable to such Employee transferred by the Policyholder from the Fixed Account to the Variable Account on that day;

MINUS

7. Any Cash Withdrawals applicable to such Employee made by the Policyholder from the Fixed Account on that day;

MINUS

8. Any amounts applicable to such Employee transferred from the Fixed Account to the Policy Loan Account on that day;

MINUS

9. Any Plan Deductions applicable to such Employee which are charged to the Fixed Account on that day.

The cash value in the Fixed Account is equal to the sum of the cash values in the Fixed Account applicable to each Employee covered under This Plan Minus any Death Benefits paid to the Policyholder (see the Death Benefit provision).

B. INTEREST RATE

The Guaranteed Interest Rate for the Fixed Account is at the effective rate of 3% a year. Interest will be credited to the Fixed Account in the manner and at the rates MetLife sets from time to time. Any rates MetLife sets will never be less than the Guaranteed Interest Rate.

Section 11. SEPARATE ACCOUNTS

A. DESCRIPTION

Separate Accounts are investment accounts established and maintained by MetLife, separate from MetLife's general account and other separate investment accounts.

MetLife owns the assets in the Separate Accounts. Assets equal to the reserves and other liabilities of the Separate Accounts will not be charged with liabilities that arise from any other business MetLife conducts. MetLife may from time to time transfer to its general account cash in excess of such reserves and liabilities.

Income and realized and unrealized gains and losses from assets in the Separate Accounts are credited to or charged against the Separate Accounts without regard to MetLife's other income, gains or losses.

The Separate Accounts may be valued at the end of each Business Day or less frequently. In any event, a valuation will be determined as described in the Exhibits attached to this Group Policy.

The Separate Accounts available on the Date of Issue are described in the Exhibits attached as of such date. The initial Separate Account(s) selected by the Policyholder are shown in the Policy Rider attached. MetLife may from time to time make other Separate Accounts available to the Policyholder. MetLife will provide the Policyholder with written notice of all material details including investment objectives and all charges.

Each Separate Account is established and maintained pursuant to the Insurance Law of the State of New York.

B. VALUE

The total cash value in the Variable Account is equal to the sum of the Policyholder's Cash Value in each of the Separate Accounts.

The Policyholder's Cash Value in a Separate Account will be determined by multiplying the number of units owned by the Policyholder in such Separate Account by the unit value of such Separate Account. The unit value of the Separate Account is determined as described in the Exhibits attached to this Group Policy.

Section 12. RIGHT TO CHANGE ALLOCATION

The Policyholder can change the allocation of future Net Contributions among the Fixed Account and/or Separate Account(s). The Policyholder must allocate a minimum amount of Net Contributions to each alternative chosen. Such minimum amount is on file with the records for the insurance provided under this Group Policy. Percentages must be in whole numbers. For example, 33 1/3% may not be chosen. The Policyholder must notify MetLife in writing of a change in the allocation percentages. The change will take effect on the date MetLife receives written notice from the Policyholder at MetLife's Home Office or Administrative Office.

The Policyholder may also change the allocation of the Policy Cash Value. To do this, the Policyholder may transfer amounts among the Fixed Account and/or the Separate Account(s) up to four times in a Plan Year without paying a transfer fee. Any additional transfer will be subject to the Transfer Charge indicated in the Policy Rider attached.

Transfers must be in either dollar amounts or a percentage in whole numbers. The minimum amount that may be transferred is the amount indicated in the Policy Rider attached or, if less, the Cash Value in a Separate Account or the Cash Value in the Fixed Account.

Transfers to or from any part of the Variable Account are subject to the following conditions:

(1) Unless MetLife agrees otherwise, no transfer will be made sooner than 10 Business Days after the date MetLife receives the written request of transfer, or within 10 Business Days after any prior transfer.

(2) Any transfer to or from a Separate Account is subject to any restrictions set out in the applicable Separate Account Exhibit relating to additions thereto or withdrawals there from.

(3) If in MetLife's reasonable judgment any transfer would involve the sale of Separate Account assets for which there is no readily available market, MetLife will defer the withdrawal of all or part of the transfer amount for such period as it deems necessary.

(4) Any transfer to or from any part of the Variable Account will be made in cash.

(5) No transfer to or from any part of the Variable Account will be made on or after the Discontinuance of the Policy. (See the Discontinuance of the Policy provision.)

Transfers may be subject to certain restrictions. (See the Restrictions on Reductions in the Fixed Account provision .)

Section 13. DEATH BENEFIT

A. DESCRIPTION

When MetLife receives satisfactory proof that an Employee whose life is insured under the Group Policy has died, MetLife will pay to the Policyholder:

The Death Benefit in effect on the life of such Employee at the time of death;

MINUS

The Loan Amount.

The amount of Death Benefit on the life of an Employee is the Specified Face Amount of Insurance as filed with the records for insurance provided under this Group Policy, less any Cash Amount taken by the Policyholder. See the Partial Cash Withdrawal provision. The Death Benefit is composed of two parts - Term Insurance and an Account Value. The amount of Term Insurance varies depending upon the amount of the Account Value. The amount of Term Insurance is determined by subtracting the amount of the Account Value from the amount of Death Benefit.

B. MINIMUM DEATH BENEFIT

Not withstanding any other provision of the Policy, the amount to be paid as a Death Benefit on each insured's life shall never be less than an amount which would allow the portion of the policy attributable to such insured life, and the entire Policy, to be treated as life insurance for federal income tax purposes. In no event will the Death Benefit be less than the amount calculated by multiplying the Account Value applicable to the deceased Employee by the applicable Minimum Death Benefit Factor listed in Section 28 of this Group Policy based on the deceased Employee's attained age as of the most recent Anniversary Date.

Section 14. PAYMENTS DURING AN EMPLOYEE'S LIFETIME

A. MATURITY DATE

If an Employee is alive on the Maturity Date as described in the Policy Rider attached, MetLife will pay to the Policyholder the Account Value applicable to such Employee minus any Loan Amount.

B. PARTIAL CASH WITHDRAWAL

The Policyholder may request a partial Cash Withdrawal. Only four partial Cash Withdrawals each Plan Year may be taken without paying a fee. Any additional partial withdrawals will be subject to the Partial Cash Withdrawal Charge indicated in the Policy Rider attached. Each partial Cash Withdrawal must be at least the Minimum Partial Cash Withdrawal indicated in the Policy Rider attached. The available Cash Surrender Value will be determined as of the date MetLife receives the request. When a partial Cash Withdrawal is made, it will reduce the Cash Surrender Value by the amount of the partial Cash Withdrawal. The withdrawal will be allocated from the Fixed Account and/or any Separate Account(s) in accordance with the Policyholder's request. If no allocation is made, the withdrawal will be allocated proportionately from the Fixed Account and/or any Separate Account(s).

The Maximum Partial Cash Withdrawal during the first Plan Year is the Policyholder's current Cash Surrender Value less the Plan Deduction due in the first Plan Year.

The Maximum Partial Cash Withdrawal at any time after the first Plan Year is the current Cash Surrender Value less the Plan Deductions made for the year preceding the last Anniversary Date.

Cash Withdrawals from the Fixed Account are subject to certain restrictions. (See the Restrictions In The Fixed Account provision.)

The total Specified Face Amounts of Insurance on the lives of all Employees covered under.

This Plan will be concurrently reduced by the total of the amounts withdrawn above, proportionately for each such Employee. However, the Policyholder may request that the partial Cash Withdrawal be made on a basis other than proportionately. MetLife will reduce the Account Values of the affected Employees in accordance with the Policyholder's request. If the Policyholder requests that the partial Cash Withdrawal be made other than proportionately for each Employee covered under This Plan, MetLife will charge the Policyholder an administrative fee.

C. LOAN

The Policyholder may take a loan as described below. The maximum amount available is the Cash Surrender Value less the Plan Deductions made for the year preceding the last Anniversary Date (except in the first Plan Year where the Plan Deductions due in the first Plan Year will be used) and less interest on such loan to the next Plan Anniversary Date at the current loan interest rate. The loan must be for at least the Minimum Loan Amount indicated in the Policy Rider attached.

The loan will be allocated from the Fixed Account and/or the Separate Account(s) in accordance with the Policyholder's request. If no allocation is made, the loan will be allocated proportionately from the Fixed Account and/or the Separate Account(s). Loans from the Fixed Account are subject to certain restrictions. (See the Restrictions On Reductions in the Fixed Account provision.) The Policyholder may request that the loan be made on a basis other than proportionately. MetLife will reduce the Account Values of the affected Employees in accordance with the Policyholder's request. If the Policyholder requests that the loan be made other than proportionately for each Employee covered under This Plan, MetLife may charge the Policyholder an administrative fee.

Loan interest is charged at an adjustable interest rate. This rate will never be more than the maximum permitted by law and will not change more often than once a year on the Anniversary Date.

The rate of interest MetLife sets for a Plan Year may not exceed a maximum limit which is the higher of:

(a) The Published Monthly Average for the calendar month ending 2 months before the Anniversary Date at the beginning of the Plan Year; or

(b) The Guaranteed Interest Rate, plus 1%.

The Published Monthly Average means:

(a) Moody's Corporate Bond Yield Average-Monthly Average Corporates, as published by Moody's Investors Service, Inc. or any successor to that service; or

(b) if that average is no longer published, a substantially similar average, established by regulation issued by the insurance supervisory official of the state in which the Group Policy is delivered.

If the Published Monthly Average rate is erroneously reported, the corrected rate will be used.

If the maximum limit for a Plan Year is at least 112% higher than the rate set for the previous Plan Year, MetLife may increase the rate to no more than that limit. If the maximum limit for a Plan Year is at least 1/2% lower than the rate set for the previous Plan Year, MetLife will reduce the rate to at least that limit.

When a loan is made, the Policyholder will be informed of the initial rate applicable to that loan. Advance notice will be given to the Policyholder if there is to be an increase in the rate applicable to an existing loan.

Loan interest is due on each Anniversary Date. Interest not paid when due will be deducted proportionately from the Cash Surrender Value in the Fixed Account and/or the Separate Account(s) and will be transferred to the Policy Loan Account. The amount transferred will be treated as an increase to the loan and will be subject to applicable interest rates.

D. LOAN REPAYMENT

The Policyholder may repay all or part (but not less than the Minimum Loan Repayment indicated in the Policy Rider attached) of a loan while the insurance is in force. MetLife must be notified if the payment is intended as a loan repayment. Otherwise, it will be treated as a Contribution. Loan repayments on loans made on a proportionate basis will be allocated in the same manner as Net Contributions. Loan repayments on loans made on other than a proportionate basis will be allocated as directed by the Policyholder.

Failure to repay a loan or to pay loan interest will not result in Discontinuance Of The Policy unless the Cash Surrender Value is less than the Plan Deduction due. In that case, the provisions in Failure Of The Policyholder To Make Contribution Payments will apply.

If a loan amount is deducted from the Fixed and Separate Accounts applicable to a specific Employee, failure to repay the loan or loan interest will not result in the termination of such Employee's coverage unless the Cash Surrender Value applicable to such Employee is less than the Plan Deduction due for that Employee.

E. EFFECT OF A LOAN ON THE CASH SURRENDER VALUE

When the Policyholder takes a loan, the Cash Surrender Value in the Separate Account(s) equal to the portion of the policy loan allocated to such Separate Account(s), will be transferred to the Policy Loan Account. The Cash Surrender Value in the Fixed Account equal to the portion of the policy loan allocated to that Account will also be transferred to the Policy Loan Account. A proportionate amount of the loan will be applicable to the Fixed and Separate of each Employee who is covered under This Plan. If a loan amount is deducted from the Fixed and Separate Accounts of a specific Employee, the amount of the policy loan applicable to such Employee will be transferred to the Policy Loan Account of that Employee. Amounts in the Policy Loan Account will be credited with interest at the rate MetLife sets. That rate will be based on the rate charged on policy loans, less expenses for such loans, but will never be less than the Guaranteed Interest Rate for the Fixed Account. Interest credited to amounts in the Policy Loan Account will be allocated at least once a year among the Fixed Account and the Separate Account(s) in the same proportions as Net Contributions are then being allocated.

F. DEFERMENT

MetLife reserves the right to defer calculation and payment in the following circumstances:

1. If insurance is in force with a portion of the Cash Surrender Value in a Separate Account, it will generally not be practical to determine the investment experience of such Separate Account during any period when the New York Stock Exchange is closed for trading, or when the Securities and Exchange Commission restricts trading or determines that an emergency exists. In such a case and with respect to such Separate Account, MetLife reserves the right to defer: (a) a change in the allocation among the Separate Accounts; and (b) payment of (i) a Cash Withdrawal, (ii) policy loans and (iii) the Death Benefit.

2. If insurance is in force with a portion of the Cash Surrender Value in the Fixed Account, MetLife may defer paying a Cash Withdrawal from the Fixed Account for up to 6 months from the date MetLife receives a request for payment. If MetLife delays payment for 30 days or more, interest will be paid at a rate not less than 3% a year.

3. MetLife may delay making a loan from the Fixed Account for up to 6 months from the date a loan is requested.

G. RESTRICTIONS ON ACCOUNT REDUCTIONS

The maximum reduction in the portion of the Policy Cash Value in the Fixed Account due to any combination of loans, cash withdrawals or transfers by the Policyholder during a Plan Year is limited to the Maximum Fixed Account Reduction Percentage indicated in the Policy Rider multiplied by the Policy Cash Value in the Fixed Account at the beginning of such period; however, a different maximum fixed account reduction percentage may be used if agreed upon by MetLife and the Policyholder.

Section 15. POLICYHOLDER'S GENERAL RIGHTS

These are the Policyholder's general rights with respect to coverage on Employees' lives under the Group Policy, subject to the provisions of this Group Policy:

(a) Right to discontinue coverage;
(b) Right to make Cash Withdrawals;
(c) Right to obtain loans;
(d) Right to pay contributions;
(e) Right to select and to change the allocation of Net Contributions and to transfer the Policy Cash Value between the Fixed Account and the Variable Account.

Section 16. RECORDS TO BE MAINTAINED

Records which relate to the insurance under this Policy will be maintained. Such records will include at least the following:

(a) The names and ages of all Employees who are insured.
(b) The amount of insurance in force on each Employee.
(c) The effective date of each Employee's insurance.
(d) The effective date of any change in an amount of an Employee's insurance.
(e) The Policyholder's allocation of Net Contributions.

Such records will be maintained by MetLife; the records may, with the consent of MetLife, be maintained by the Policyholder.

Section 17. INFORMATION TO BE FURNISHED

The Policyholder will furnish to MetLife all of the information which MetLife may reasonably require with regard to the matters which relate to the insurance. The Policyholder will allow MetLife to inspect all documents, books and records of the Policyholder which relate to the insurance or to the contributions.

Section 18. ENTIRE CONTRACT

This Policy including all Policy Riders and Exhibits attached hereto, and the application of the Policyholder constitute the entire contract between the parties. A copy of the application is attached to this Policy.

Section 19. INCONTESTABILITY; STATEMENTS

Any statement made by the Policyholder or by an Employee will be deemed a representation and not a warranty. No such statement will avoid the insurance or reduce the benefits under this Policy or be used in defense to a claim under this Policy unless it is contained in a written application. No such statement of the Policyholder will be used at all after two years from the Date of Issue.

No such statement made by an Employee which relates to insurability will be used in contesting the validity of the insurance with respect to which such statement was made or to reduce the benefits unless the conditions listed in items (1) and (2) below have been met:

(1) The statement must be contained in a written application which has been signed by the Employee.
(2) A copy of the application has been furnished to the Employee or to the Policyholder.

No such statement of the Employee will be used at all after such insurance has been in force prior to the contest for a period of two years during the lifetime of the person to whom the statement applies.

Section 20. MISSTATEMENT OF AGE

In the case of the misstatement of the age of an Employee, an adjustment of the Death Benefit will be made, if appropriate. The adjusted Death Benefit will be that which the Plan Deductions paid would have provided at the correct age.

Section 21. CHANGES IN THE POLICY

No change in this Policy will be valid unless it is approved by an authorized officer of MetLife. Each such change must be evidenced by an amendment signed by both the Policyholder and by MetLife or by an endorsement signed by MetLife.

No agent may make a change in this Policy or waive any of its provisions.

Section 22. CHANGES IN POLICY COST FACTORS

Policy cost factors are interest rates, cost of term insurance rates, expense charges and administrative charges. Changes in policy cost factors will be by class and based on changes in future expectations for such elements as investment earnings, mortality, persistency, expenses and taxes. Any change in policy cost factors will be determined in accordance with procedures and standards on file, if required, with the insurance supervisory official of the jurisdiction in which the Group Policy is delivered. Policy cost factors for in-force insurance coverage will be reviewed at least once every five years to determine whether an adjustment in policy cost factors should be made.

Section 23. REPORTS

Each year, MetLife will send the Policyholder a report showing the current death benefit, Cash Surrender Value, and any outstanding policy loans.

It will also show the amount and type of credits to and deductions from the Cash Surrender Value during the past policy year.

The report will also include any other information required by the insurance supervisory official of the jurisdiction in which the Group Policy is delivered.

MetLife will also provide any reports required pursuant to the Federal Securities laws or any regulations thereunder.

Upon payment of a fee determined by MetLife, the Policyholder may request MetLife to prepare any special reports.

Section 24. RIGHT TO CHANGE THIS POLICY

MetLife reserves the right to make changes in this Group Policy in order to continue to qualify this coverage with respect to each Employee as life insurance under the Internal Revenue Code Section 7702 or successor law. MetLife will give the Policyholder written notice of any such change.

MetLife also reserves the right to make certain changes if, in its judgment, they would best serve the interests of the Policyholder. Any changes will be made only to the extent and in the manner permitted by applicable laws. Also, when required by law, MetLife will obtain approval of the changes from the Policyholder and the approval of any appropriate regulatory authority.

Examples of the changes MetLife may make include:

To operate the Separate Accounts in any form permitted by law.
To take any action necessary to comply with or obtain and continue any exemptions from the Investment Company Act of 1940.
To transfer in cash any assets in a Separate Account to another Separate Account or to one or more Separate Accounts, or to MetLife's general account; or to add, combine, or remove Separate Accounts.
To change the way MetLife assesses charges.
To make any other necessary technical changes in this Group Policy in order to conform with any action this provision permits MetLife to take.

If any of these changes result in a material change in the underlying investments of a Separate Account, MetLife will notify the Policyholder of such change. If the Policyholder has funds allocated to that Separate Account, the Policyholder may then make a new choice of Separate Accounts.

Section 25. TERMINATION OF AN EMPLOYEE'S COVERAGE

The insurance on the life of an Employee will terminate on the earliest of these dates:

(a) The date of Discontinuance of the Policy.
(b) The date the Employee dies.
(c) The Maturity Date as described in the Policy Rider attached.
(d) The Monthly Date after the Policyholder requests to terminate the Account Value applicable to that Employee.

Section 26. DISCONTINUANCE OF THE POLICY

MetLife will have the right to discontinue this Group Policy at the end of the grace period. (See Failure Of The Policyholder To Make Contribution Payments.) Notice, in writing, that this Policy is to be discontinued must be given to the Policyholder by MetLife. The notice must be given at least sixty days prior to the last day of the grace period.

The Policyholder will have the right to discontinue this Policy. Notice, in writing, that this Policy is to be discontinued must be given to MetLife by the Policyholder. The notice must be given at least sixty days prior to the date this Policy is to be discontinued.

If this Policy is discontinued. the Cash Surrender Value minus a pro-rata share of any Plan Deduction which has not been made in the current Plan Year will be payable by MetLife to such Policyholder as follows:

(a) If any of the Policy Cash Value is in a Separate Account, MetLife will pay the Cash Surrender Value of such Account. If in MetLife's reasonable judgment any such payment would involve the sale of Separate Account assets for which there is then no readily available market, MetLife will defer all or a portion of such payment for such time as it deems necessary.

(b) If any of the Policy Cash Value is in the Fixed Account, MetLife will pay, over the Cancellation Period indicated in the Policy Rider attached, the Cash Surrender Value divided into equal monthly installments. If the payout is delayed in excess of thirty days, MetLife will credit interest on any unpaid balance at the Payout Interest Rate indicated in the Policy Rider attached.

The Cash Surrender Value will be determined as of the date this Policy is discontinued.

Section 27. ADDITIONAL PROVISIONS

None.

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