Document:

GBC Bancorp 1999 Employee Stock Incentive Plan

 Exhibit 10.5 
 GBC BANCORP 
 1999 EMPLOYEE STOCK INCENTIVE PLAN 
  

 Adopted as of April 22, 1999

 Section 1. PURPOSE OF PLAN 
 The purpose of this 1999 Employee Stock Incentive Plan (“Plan”) of GBC Bancorp, a California corporation (the “Company”), is to enable the Company and its subsidiaries to attract, retain and motivate their employees,
nonemployee directors and consultants by providing for or increasing the proprietary interests of such employees, nonemployee directors and consultants in the Company and, thereby, further align their interests with those of the shareholders of the
Company. 
 Section 2. PERSONS ELIGIBLE UNDER PLAN 
 Each of the following persons (each, a “Participant”) shall be eligible to be considered for the grant of Awards (as hereinafter defined) hereunder: (1) any employee of the Company or any of its
subsidiaries or any other entity in which the Company has a significant equity or other interest as determined by the Committee (as hereinafter defined), including any director who is also such an employee, (2) any director of the Company or
any of its subsidiaries who is not also an employee of the Company or any of its subsidiaries (a “Nonemployee Director”) and (3) any consultant of the Company or any of its subsidiaries. 
 Section 3. AWARDS 
 (a) The Committee,
on behalf of the Company, is authorized under this Plan to enter into any type of arrangement with a Participant that is not inconsistent with the provisions of this Plan and that, by its terms, involves or might involve the issuance of
(i) shares of common stock of the Company (“Common Shares”) or (ii) a Derivative Security (as such term is defined in Rule 16a-1 promulgated under the Securities Exchange Act of 1934, as amended (the Exchange Act), as such rule
may be amended from time to time) with an exercise or conversion privilege at a price related to the Common Shares or with a value derived from the value of the Common Shares. The entering into of any such arrangement is referred to herein as the
“grant” of an “Award.” 
  

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 (b) Awards are not restricted to any specified form or structure and may include, without limitation,
sales or bonuses of stock, restricted stock, stock options, reload stock options, stock purchase warrants, other rights to acquire stock, securities convertible into or redeemable for stock, stock appreciation rights, phantom stock, dividend
equivalents, performance units or performance shares, and an Award may consist of one such security or benefit, or two or more of them in tandem or in the alternative. 
 (c) Awards may be issued, and Common Shares may be issued pursuant to an Award, for any lawful consideration as determined by the Committee, including, without limitation, services rendered by the recipient of such
Award. 
 (d) Subject to the provisions of this Plan, the Committee, in its sole and absolute discretion, shall determine all of the terms
and conditions of each Award granted under this Plan, which terms and conditions may include, among other things: 
 (i) a
provision permitting the recipient of such Award, including any recipient who is a director or officer of the Company, to pay the purchase price of the Common Shares or other property issuable pursuant to such Award, or such recipient’s tax
withholding obligation with respect to such issuance, in whole or in part, by any one or more of the following: 
 (A) the
delivery of cash; 
 (B) the delivery of other property deemed acceptable by the Committee; 
 (C) the delivery of previously owned shares of capital stock of the Company (including “pyramiding”) or other property;

 (D) a reduction in the amount of Common Shares or other property otherwise issuable pursuant to such Award; 
 (E) authorizing a third party to sell Common Shares or other property otherwise issuable pursuant to such Award and to remit to the
Company a sufficient portion of the sale proceeds to pay for all the Common Shares acquired through such exercise or any tax withholding obligation resulting from such exercise; or 
 (F) crediting toward the purchase price a portion of the recipient’s deferred compensation account balance; 
  

 2 

 (ii) a provision conditioning or accelerating the receipt of benefits pursuant to such
Award, either automatically or in the discretion of the Committee, upon the occurrence of specified events, including, without limitation, a change of control of the Company (as defined by the Committee), an acquisition of a specified percentage of
the voting power of the Company, the dissolution or liquidation of the Company, a sale of substantially all of the property and assets of the Company or an event of the type described in Section 7 hereof; or 
 (iii) a provision required in order for such Award to qualify as an incentive stock option (an “Incentive Stock Option”) under
Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”); provided, however, that no Award issued to any consultant or any Nonemployee Director may qualify as an Incentive Stock Option. 
 (e) All certificates evidencing Awards or Common Shares issued pursuant thereto shall bear any legend determined by the Committee to be necessary or
appropriate. 
 Section 4. STOCK SUBJECT TO PLAN 
 (a) Subject to adjustment as provided in Section 7, at any time, the aggregate number of Common Shares issued and issuable pursuant to all Awards granted under this Plan shall not exceed the sum of
(i) 1,000,000, including any Common Shares issuable pursuant to that certain Employment Agreement dated as of January 1, 1998, between the Company and Li-Pei Wu, as the same may be amended from time to time, (ii) any Common Shares
available for future awards under any prior plan of the Company as of the effective date of the Plan and (iii) any Common Shares subject to awards granted under any prior plan of the Company which are forfeited, expire or are canceled without
delivery of Common Shares. 
 (b) For purposes of Section 4(a) hereof, the aggregate number of Common Shares issued and issuable
pursuant to Awards granted under this Plan shall at any time be deemed to be equal to the sum of the following: 
 (i) the
number of Common Shares that were issued prior to such time pursuant to Awards granted under this Plan, other than Common Shares that were subsequently reacquired by the Company pursuant to the terms and conditions of such Awards and with respect to
which the holder thereof received no benefits of ownership such as dividends; plus 
 (ii) the number of Common Shares that
were otherwise issuable prior to such time pursuant to Awards granted under this Plan, but that were withheld by the Company as payment of the purchase price of the Common Shares issued pursuant to such Awards or as payment of the recipient’s
tax withholding obligation with respect to such issuance; plus 
  

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 (iii) the maximum number of Common Shares that are or may be issuable at or after such
time pursuant to Awards granted under this Plan prior to such time. 
 Section 5. DURATION OF PLAN 
 No Awards shall be made under this Plan after April 22, 2009. Although Common Shares may be issued after April 22, 2009 pursuant to Awards made
prior to such date, no Common Shares shall be issued under this Plan after April 22, 2019. 
 Section 6. ADMINISTRATION OF PLAN

 (a) This Plan shall be administered by the Board of Directors of the Company (the “Board”) or, at the election for the Board, by
a committee of the Board consisting of two or more directors, each of whom is an “outside director” within the meaning of Section 162(m) of the Code, and who otherwise comply with the requirements of Rule 16b-3 promulgated under the
Exchange Act. The term Committee shall mean the Board or any such committee of the Board which shall have been designated by the Board to administer this Plan. 
 (b) Subject to the provisions of this Plan, the Committee shall be authorized and empowered to do all things necessary or desirable in connection with the administration of this Plan, including, without limitation,
the following: 
 (i) adopt, amend and rescind rules and regulations relating to this Plan; 
 (ii) determine which persons are Participants and to which of such Participants, if any, Awards shall be granted hereunder; 
 (iii) grant Awards to Participants and determine the terms and conditions thereof, including the number of Common Shares issuable pursuant
thereto, any performance or vesting contingencies and the terms of any transferability of such Awards; 
 (iv) determine
whether, and the extent to which adjustments are required pursuant to Section 7 hereof; 
  

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 (v) interpret and construe this Plan and the terms and conditions of any Award granted
hereunder; and 
 (vi) certify in writing prior to payment of compensation that the performance goals and any other material
terms of an Award were in fact satisfied. For this purpose, approved minutes of the Committee meeting in which the certification is made are treated as a written certification. 
 Section 7. ADJUSTMENTS 
 If the
outstanding securities of the class then subject to this Plan are increased, decreased or exchanged for or converted into cash, property or a different number or kind of securities, or if cash, property or securities are distributed in respect of
such outstanding securities, in either case as a result of a reorganization, merger, consolidation, recapitalization, restructuring, reclassification, dividend (other than a regular cash dividend) or other distribution, stock split, reverse stock
split or the like, or if substantially all of the property and assets of the Company are sold, then, unless the terms of such transaction shall do so, the Committee shall make appropriate and proportionate adjustments in (i) the number and type
of shares or other securities or cash or other property that may be acquired pursuant to Awards theretofore granted under this Plan and (ii) the maximum number and type of shares or other securities that may be issued pursuant to Awards
thereafter granted under this Plan. 
 Section 8. AMENDMENT, SUSPENSION AND TERMINATION OF PLAN 
 The Board may amend, suspend or terminate this Plan at any time and in any manner, provided that no such amendment, suspension or termination shall
impair, or deprive the recipient of, any Award theretofore granted under this Plan, without the consent of such recipient, of any of his or her rights thereunder or with respect thereto. 
 Section 9. EFFECTIVE DATE OF PLAN 
 This Plan shall be effective as of April 22, 1999, the date upon which it was approved by the affirmative votes of the holders of a majority of the securities of the Company present, or represented, and entitled to vote at a meeting
duly held in accordance with the laws of the State of California. 
  

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 Section 10. GOVERNING LAW 
 This Plan and any Award granted hereunder shall be governed by and construed and enforced in accordance with the laws of the State of California without
reference to choice or conflict of law principles. 
  

 6UPS Retirement Plan, as Amended and Restated

 Exhibit 10.2 
 EXECUTION COPY 
 AMENDMENT NO. 35 
 TO THE 
 UPS RETIREMENT PLAN 
 WHEREAS, United Parcel Service of America, Inc. (“UPS”) and its affiliated corporations established the UPS Retirement Plan (“Plan”)
for the benefit of its employees, in order to provide benefits to those employees upon their retirement, disability, or death, effective as of September 1, 1961; and 
 WHEREAS, the Plan, as adopted and amended from time to time, was amended and restated in its entirety, effective as of January 1, 1976, to comply with the Employee Retirement Income Security Act of 1974; and

 WHEREAS, the Plan has been amended on a number of occasions since January 1, 1976, the most recent being Amendment No. 34; and

 WHEREAS, UPS desires to amend to: 
  

	•	 	 Restate the entire document and incorporate all previous amendments; 

  

	•	 	 Amend and/or add definitions to clarify the intended meaning and to comply with requirements applicable to the qualified joint and survivor annuity benefit

  

	•	 	 Eliminate the one-year holdout rule; 

  

	•	 	 Link entitlement to disability benefits to a finding of disability under the United States Social Security Act; 

  

	•	 	 Revise the benefit formula to apply the Overnite formula to all eligible UPS Ground Freight employees beginning in 2006 and clarify the rules that apply when a
participant accrues benefits under multiple formulas in the same plan year; 

  

	•	 	 Eliminate years of zero compensation in calculating final average compensation; 

  

	•	 	 Clarify the suspension of benefit rules and the application of the minimum distribution rules; 

  

	•	 	 Amend the claims procedures, the procedures for unlocatable participants and add a procedure for recovery of overpayments; 

  

	•	 	 Provide retiree medical benefits for certain UPS Ground Freight employees; and 

  

	•	 	 Add an appendix providing benefits for certain former Aviation Technologies employees in connection with the sale of Aviation Technologies to Garmin International,
Inc. 

 NOW THEREFORE, pursuant to the authority vested in the Board of Directors by Section 7.1 of the UPS Retirement
Plan (the “Plan”), such Plan is hereby amended and restated in the form attached to this Amendment Number 35. 

 IN WITNESS WHEREOF, the undersigned certify that United Parcel Service of America, Inc. based upon action
by the Board of Directors on December             , 2006 has caused this Amendment No. 35 to be adopted. 
  

					
	ATTEST:	 		 	 UNITED PARCEL SERVICE
 OF AMERICA,
INC.

			
	   	 		 	   
	 Teri P. McClure
 Secretary
	 		 	 Michael L. Eskew
 Chairman

 THE UPS RETIREMENT PLAN 
 (Amended and Restated Effective January 1, 2006, 
 incorporating
Amendments 1 through 34) 

 THE UPS RETIREMENT PLAN 
 TABLE OF CONTENTS 
  

							
	 Article I
	  	DEFINITIONS	  	2
		  	(a)	 	 “Accrued Benefit”
	  	2
		  	(b)	 	 “Actuarial Equivalent”
	  	2
		  	(c)	 	 “Actuary”
	  	4
		  	(d)	 	 “Alternative Formula”
	  	4
		  	(e)	 	 “Annuity Starting Date”
	  	4
		  	(f)	 	 “Applicable Interest Rate”
	  	4
		  	(g)	 	 “Applicable Mortality Table”
	  	5
		  	(h)	 	 “Benefit Service”
	  	5
		  	(i)	 	 “Beneficiary”
	  	7
		  	(j)	 	 “Board of Directors”
	  	7
		  	(k)	 	 “Break in Service”
	  	7
		  	(l)	 	 “Code”
	  	7
		  	(m)	 	 “Committee”
	  	7
		  	(n)	 	 “Company”
	  	7
		  	(o)	 	 “Compensation”
	  	8
		  	(p)	 	 “Deferred Vested Benefit”
	  	10
		  	(q)	 	 “Disability” or “Disabled”
	  	10
		  	(r)	 	 “Disability Retirement Benefit”
	  	10
		  	(s)	 	 “Domestic Partner”
	  	11
		  	(t)	 	 “Early Commencement Service Requirement”
	  	11
		  	(u)	 	 “Earliest Commencement Age”
	  	11
		  	(v)	 	 “Early Retirement Date”
	  	11
		  	(w)	 	 “Effective Date”
	  	12
		  	(x)	 	 “Employee”
	  	12
		  	(y)	 	 “Employer Company”
	  	12
		  	(z)	 	 “ERISA”
	  	13
		  	(aa)	 	 “Final Average Compensation”
	  	13
		  	(bb)	 	 “Five Year Certain and Life Annuity”
	  	14
		  	(cc)	 	 “Foreign Employee”
	  	14
		  	(dd)	 	 “Fund”, “Trust”, or “Trust Fund”
	  	14
		  	(ee)	 	 “Grandfathered Participant”
	  	14
		  	(ff)	 	 “Grandfathered Motor Cargo Participant”
	  	15
		  	(gg)	 	 “Grandfathered Overnite Participant”
	  	15
		  	(hh)	 	 “Hour of Service”
	  	15
		  	(ii)	 	 “Integrated Formula”
	  	17
		  	(jj)	 	 “Joint and Survivor Annuity”, “Joint and 50% Survivor Annuity”, and “Joint and 100% Survivor
Annuity”
	  	17
		  	(kk)	 	 “LTD Participant”
	  	17
		  	(ll)	 	 “Motor Cargo Plan”
	  	17
		  	(mm)	 	 “Normal Form”
	  	17
		  	(nn)	 	 “Normal Retirement Benefit”
	  	17

  

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		  	(oo)	 	 “Normal Retirement Date”
	  	17
		  	(pp)	 	 “Optional Form of Benefit”
	  	17
		  	(qq)	 	 “Overnite”
	  	17
		  	(rr)	 	 “Overnite Plan”
	  	17
		  	(ss)	 	 “Participant”
	  	18
		  	(tt)	 	 “Pre-2001 Participant”
	  	18
		  	(uu)	 	 “Pre-2006 Motor Cargo Benefit Service”
	  	18
		  	(vv)	 	 “Pre-2006 Motor Cargo Formula”
	  	18
		  	(ww)	 	 “Pre-2006 Overnite Benefit Service”
	  	18
		  	(xx)	 	 “Plan”
	  	18
		  	(yy)	 	 “Plan Year”
	  	18
		  	(zz)	 	 “Postponed Retirement Benefit”
	  	18
		  	(aaa)	 	 “Postponed Retirement Date”
	  	18
		  	(bbb)	 	 “Preretirement Survivor Annuity”
	  	18
		  	(ccc)	 	 “Present Value”
	  	18
		  	(ddd)	 	 “Qualified Joint and Survivor Annuity”
	  	18
		  	(eee)	 	 “Related Employer”
	  	19
		  	(fff)	 	 “Retirement Benefit”
	  	19
		  	(ggg)	 	 “RPA Benefit Service”
	  	19
		  	(hhh)	 	 “RPA Formula”
	  	19
		  	(iii)	 	 “RPA Points”
	  	19
		  	(jjj)	 	 “Single Life Only Annuity”
	  	19
		  	(kkk)	 	 “Single Life Only Annuity and 120-Monthly Guarantee”
	  	19
		  	(lll)	 	 “Social Security Amount”
	  	19
		  	(mmm)	 	 “Social Security Leveling Option”
	  	20
		  	(nnn)	 	 “Spouse”
	  	20
		  	(ooo)	 	 “Trust Agreement” or “Trust Agreements”
	  	20
		  	(ppp)	 	 “Trustee”
	  	20
		  	(qqq)	 	 “UPS Freight Formula”
	  	20
		  	(rrr)	 	 “UPS Freight Service”
	  	20
		  	(sss)	 	 “Year of Service”
	  	20
	 Section 1.2.
	 	 Construction
	  	21
			
	 Article II
	  	ELIGIBILITY FOR PARTICIPATION	  	22
	 Section 2.1.
	 	 Eligibility Requirements
	  	22
			
	 Article III
	  	FUNDING	  	24
	 Section 3.1.
	 	 Funding Method and Policy
	  	24
	 Section 3.2.
	 	 Establishment of Funding Standard Account
	  	24
	 Section 3.3.
	 	 Payment of Contributions
	  	24
	 Section 3.4.
	 	 Contributions by Employer
	  	24
	 Section 3.5.
	 	 Permissible Contributions and Irrevocability
	  	24
			
	 Article IV
	  	ELIGIBILITY FOR BENEFITS	  	26
	 Section 4.1.
	 	 Application for Benefits
	  	26
	 Section 4.2.
	 	 Normal Retirement Benefit
	  	26
	 Section 4.3.
	 	 Early Retirement Benefit
	  	26
	 Section 4.4.
	 	 Deferred Vested Benefit
	  	26
	 Section 4.5.
	 	 Postponed Retirement Benefit
	  	27

  

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	 Section 4.6.
	  	 Disability Retirement Benefit
	  	27
	 Section 4.7.
	  	 Termination of Disability
	  	27
			
	 Article V
	 	 AMOUNT AND PAYMENT OF BENEFITS
	  	28
	 Section 5.1.
	  	 Benefits Limited by Plan Provisions in Effect; Retiree Benefit Increases
	  	28
	 Section 5.2.
	  	 Benefit Amounts
	  	30
	 Section 5.3.
	  	 Formulas
	  	39
	 Section 5.4.
	  	 Benefit Payment
	  	43
	 Section 5.5.
	  	 Disability Retirement Benefit
	  	46
	 Section 5.6.
	  	 Preretirement Survivor Annuity
	  	46
	 Section 5.7.
	  	 Benefit Payments Under Other Plans and Programs
	  	47
	 Section 5.8.
	  	 Preservation of Benefits and Maximum Pensions
	  	48
	 Section 5.9.
	  	 Limitations Regarding Time of Payment of Benefits
	  	51
	 Section 5.10.
	  	 Designation of Beneficiary
	  	53
	 Section 5.11.
	  	 Final Payment to Participant or Beneficiary
	  	53
	 Section 5.12.
	  	 Suspension of Benefits
	  	53
	 Section 5.13.
	  	 Withholding of Income Tax
	  	54
	 Section 5.14.
	  	 Direct Rollover
	  	56
	 Section 5.15.
	  	 Recovery of Overpayments
	  	56
				
	 Article VI
	 	 VESTING
	  		  	57
	 Section 6.1.
	  	 Vesting
	  	57
	 Section 6.2.
	  	 Breaks in Service for Vesting Purposes
	  	57
	 Section 6.3.
	  	 Forfeitures
	  	57
			
	 Article VII
	 	 AMENDMENT, MODIFICATION AND TERMINATION; MERGER
	  	58
	 Section 7.1.
	  	 Right to Amend or Terminate
	  	58
	 Section 7.2.
	  	 Withdrawal of Employer Company
	  	58
	 Section 7.3.
	  	 Liquidation of Trust Fund
	  	58
	 Section 7.4.
	  	 Finality of Payment
	  	59
	 Section 7.5.
	  	 Non-diversion of Assets
	  	59
	 Section 7.6.
	  	 Committee Functions during Termination
	  	59
	 Section 7.7.
	  	 Notice of Termination
	  	59
	 Section 7.8.
	  	 Merger and Consolidation of Plan, Transfer of Assets
	  	59
	 Section 7.9.
	  	 Discontinuance of Plan Within Ten Years of Amendment
	  	61
			
	 Article VIII
	 	 INVESTMENTS
	  	61
	 Section 8.1.
	  	 Direction of Investments
	  	61
	 Section 8.2.
	  	 Seventy-Five Percent Limitation
	  	61
	 Section 8.3.
	  	 Annual Valuation of Trust Fund
	  	61
			
	 Article IX
	 	 ADMINISTRATIVE COMMITTEE
	  	62
	 Section 9.1.
	  	 Establishment of Administrative Committee
	  	62
	 Section 9.2.
	  	 Delegation of Specific Responsibilities
	  	62
	 Section 9.3.
	  	 Power to Establish Regulations
	  	62
	 Section 9.4.
	  	 Claims Procedure
	  	62
	 Section 9.5.
	  	 Forfeiture in Case of Unlocatable Participant or Beneficiary
	  	65
	 Section 9.6.
	  	 Liability of the Committee
	  	65
	 Section 9.7.
	  	 Fiduciary Responsibility Insurance; Bonding
	  	66
	 Section 9.8.
	  	 Meetings of Committee
	  	66

  

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	 Section 9.9.
	  	 Compensation of Committee
	  	66
	 Section 9.10.
	  	 Reliance by Committee
	  	66
	 Section 9.11.
	  	 Books and Records
	  	66
	 Section 9.12.
	  	 Disbursements
	  	66
	 Section 9.13.
	  	 Allocation of Responsibility Among Fiduciaries for Plan and Trust Administration
	  	66
	 Article X
	  	 GENERAL PROVISIONS
	  	68
	 Section 10.1.
	  	 Prohibition Against Attachment
	  	68
	 Section 10.2.
	  	 Facility of Payment
	  	69
	 Section 10.3.
	  	 Payment to Minor Beneficiary
	  	69
	 Section 10.4.
	  	 No Rights of Employment
	  	69
	 Section 10.5.
	  	 Payments Only From Trust Fund
	  	69
	 Section 10.6.
	  	 Applicable Law
	  	69
	 Section 10.7.
	  	 Titles
	  	70
	 Section 10.8.
	  	 Counterparts
	  	70
	 Section 10.9.
	  	 No Access to Books and Records
	  	70
	 Section 10.10.
	  	 Procedures for Qualified Domestic Relations Orders
	  	70
	 Section 10.11.
	  	 USERRA
	  	70
	 Article XI
	  	 TOP-HEAVY PROVISIONS
	  	71
	 Section 11.1.
	  	 Effective Date of This Article
	  	71
	 Section 11.2.
	  	 Definitions
	  	71
		  	(a)	  	 “Top-Heavy Plan”
	  	71
		  	(b)	  	 “Key Employee”
	  	71
		  	(c)	  	 “Aggregation Group”
	  	72
		  	(d)	  	 “Top-Heavy Group’
	  	72
		  	(e)	  	 “Determination Date”
	  	72
		  	(f)	  	 “Account Aggregate”
	  	72
		  	(g)	  	 “Cumulative Accrued Benefit”
	  	73
		  	(h)	  	 “Total Benefit”
	  	74
		  	(i)	  	 “Total Compensation”
	  	74
		  	(j)	  	 “Testing Period”
	  	74
		  	(k)	  	 “Employer Company”
	  	74
	 Section 11.3.
	  	 Top-Heavy Vesting Schedule
	  	74
	 Section 11.4.
	  	 Top-Heavy Minimum Benefit
	  	75
	 Section 11.5.
	  	 Top-Heavy Limitation on Compensation
	  	75
	 Section 11.6.
	  	 Top-Heavy Adjustment to Section 415 Limitations
	  	75
	 Section 11.7.
	  	 Certain Benefits Disregarded
	  	75
	 Article XII
	  	 RETIREE MEDICAL BENEFITS
	  	76
	 Section 12.1.
	  	 Creation of Separate Account
	  	76
	 Section 12.2.
	  	 Definitions
	  	76
		  	(a)	  	 “Covered Dependent”
	  	76
		  	(b)	  	 “Medical Benefits”
	  	77
		  	(c)	  	 “Medical Expense”
	  	77
		  	(d)	  	 “Retired Participant”
	  	77
		  	(e)	  	 “Grandfathered Retired Participant”
	  	78
	 Section 12.3.
	  	 Duration of Coverage; Election to Continue Coverage
	  	78

  

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	 Section 12.4.
	  	 Funding Method and Policy
	  	81
	 Section 12.5.
	  	 Subordination to Retirement Benefits
	  	81
	 Section 12.6.
	  	 Forfeitures
	  	82
	 Section 12.7.
	  	 Benefits Provision
	  	82
	 Section 12.8.
	  	 Supervision of Account
	  	82
	 Section 12.9.
	  	 Coordination with Employer-Maintained Group Medical Insurance for Active Participants and their Covered Dependents
	  	82
	 Section 12.10.
	  	 Participant Contributions
	  	82
		
	 Article XIII         SPECIAL BENEFITS UPON VOLUNTARY TERMINATION OF
EMPLOYMENT
	  	86
	 Section 13.1.
	  	 Special Early Retirement
	  	86
	 Section 13.2.
	  	 Supplemental Retirement Benefit
	  	86
	 Section 13.3.
	  	 Legal Compliance
	  	88
		
	 APPENDIX A
	  	89
	 APPENDIX B
	  	90
	 APPENDIX C
	  	91
	 APPENDIX D ADDITIONAL MONTHLY RETIREMENT BENEFIT
	  	92
	 APPENDIX E FORMER ROLLINS EMPLOYEES
	  	95
	 APPENDIX F-1 RPA POINTS AND DDB AMOUNTS
	  	97
	 APPENDIX F-2 RPA POINTS AND DDB AMOUNTS
	  	99
	 APPENDIX F-3 RPA POINTS AND DDB AMOUNTS
	  	101
	 APPENDIX F-4 RPA POINTS AND DDB AMOUNTS
	  	103
	 APPENDIX F-5 RPA POINTS AND DDB AMOUNTS
	  	105
	 APPENDIX F-6 DDB AMOUNTS
	  	106
	 APPENDIX G LIST OF EMPLOYER COMPANIES WITH UPS FREIGHT FORMULA
	  	107
	 APPENDIX H EMPLOYER COMPANIES
	  	108
	 APPENDIX I SPECIAL OPL RETIREMENT BENEFIT
	  	110
	 APPENDIX J UPS FREIGHT/OVERNITE SUPPLEMENTAL BENEFIT SCHEDULE
	  	114
	 APPENDIX K MOTOR CARGO SUPPLEMENTAL BENEFIT SCHEDULE EFFECTIVE JANUARY 1, 2006
	  	119
	 APPENDIX L SPECIAL ENHANCED BENEFIT FOR AVIATION TECHNOLOGIES PARTICIPANTS
	  	122

  

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 THE UPS RETIREMENT PLAN 
 WHEREAS, the Employer Companies have heretofore established this Retirement Plan for the benefits of their eligible employees, in order to provide
benefits to those employees upon their retirement, disability, or death, effective as of September 1, 1961; and 
 WHEREAS,
following the enactment of the Employee Retirement Income Security Act of 1974, the Plan was amended and restated in its entirety, replacing all of the provisions of the Plan then in effect, being effective as of January 1, 1976; and

 WHEREAS, the Plan has subsequently been amended on a number of occasions, the most recent of which is Amendment No. 34;

 NOW, THEREFORE, this Amendment No. 35 hereby amends and restates the Plan for ease of administration to incorporate all
amendments made to date, and make other amendments which are generally effective as to individuals with at least one Hour of Service as an Employee on or after as of January 1, 2006 and new Employees hired thereafter. The rights and benefits,
if any, of an individual without at least one Hour of Service as an Employee on or after January 1, 2006 shall be determined in accordance with the terms of the Plan in effect on the date he last earned an Hour of Service, except as expressly
provided in this amended and restated plan or as otherwise provided by the Code or ERISA. 

 ARTICLE I 
 DEFINITIONS 
 Section 1.1. Definitions. Whenever used herein, the following words shall have
the meaning set forth below unless otherwise clearly required by the context: 
 (a) “Accrued Benefit” means the monthly
benefit defined in Section 5.2(a). 
 (b) “Actuarial Equivalent  
 (i) General Optional Form of Payment. For purposes of determining the amount of an Optional Form of Benefit, a benefit having in
the aggregate equality in value to the amounts expected to be received under the Normal Form of benefit payment based upon an interest rate of 6% and the 1983 GAM Mortality Table for Males for Participants and the 1983 GAM Mortality Table for
Females for beneficiaries and Alternate Payees. 
 (ii) Special Rules Optional Form of Payment. Notwithstanding the
foregoing, the following factors will apply to the Participants described below in determining the amount of the Optional Forms of Benefit described below: 
 (A) Grandfathered Participants and Pre-2001 Benefits. For purposes of determining the amount payable to (I) any Grandfathered Participant or (II) any other Participant who had accrued a benefit under the
Plan as of December 31, 2000 and who is not in pay status as of December 31, 2000, in the form of a Qualified Joint and Survivor Annuity, Joint and 50% Survivor Annuity or a Single Life Annuity with 120-Month Guarantee: 
 (1) Qualified and 50% Joint and Survivor Annuity. If the Optional Form of Benefit is a Qualified Joint and Survivor Annuity or a
50% Joint and Survivor Annuity the greater of (I) the amount determined under Section 1.1(b)(i) above or (II) the amount determined in accordance with paragraph (a) or (b) below: 
 a. 94 percent of the Participant’s monthly benefit in the Normal Form increased (or decreased) by 0.5 percent for each
year the Spouse’s or beneficiary’s age is greater (or less) than the Participant’s age, to a minimum of 82 percent if the beneficiary is the Participant’s Spouse (but no minimum shall apply if the beneficiary is not the
Participant’s Spouse), and a maximum of 99 percent (without regard to whether the beneficiary is the Participant’s Spouse), if the Normal Form of the Participant’s benefit is a Single Life Annuity with 120-Month Guarantee; and

  

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 b. 90 percent of the Participant’s monthly benefit in the Normal Form
increased (or decreased) by 0.5 percent for each year the Spouse’s or beneficiary’s age is greater (or less) than the Participant’s age, with no minimum but a maximum of 99 percent if the Normal Form of the
Participant’s benefit is a Single Life Only Annuity. 
 (2) Single Life with 120-Month Guarantee. If the benefit
is payable to a Participant described in Section 1.1(b)(2)(A) with at least one Hour of Service as an Employee on or after January 1, 1992 in the form of a Single Life Annuity with 120-Month Guarantee, the greater of (I) the amount
determined under Section 1.1(b)(i) above or (II) 95 percent of his monthly benefit payable in the Normal Form. 
 (3) Adjustment for Certain Qualified Joint and Survivor Annuities. If the benefit is payable on or after January 1, 2007 to a Participant described in Section 1.1(b)(2)(A) with at least one Hour of Service as an Employee on
or after January 1, 1992 in the form of a Qualified Joint and Survivor Annuity, then the amount of the benefit determined under Section 1.1(b)(ii)(A) shall be increased by five percent (5%) or such greater percentage as is required to
make the Qualified Joint and Survivor Annuity equivalent to the most valuable benefit available to such Participant if such Participant retires on or after age 65. 
 (B) Grandfathered Overnite Participant. For purposes of determining the benefit payable to any Grandfathered Overnite Participant
with an Annuity Starting Date occurring on or after January 1, 2006: 
 (1) If the Optional Form of Payment is a
Qualified Joint and Survivor Annuity or a 50% or 100% Joint and Survivor Annuity the greater of (A) the amount determined under Section 1.1(b)(i) above or (B) the amount determined using an interest rate of 7% and the UP 1984 Unisex
Pension Mortality Table; 
 (2) If the Optional Form of Benefit is a Social Security Leveling Option, the greater of
(A) the amount determined under Section 1.1(b)(i) above, (B) the amount determined using an interest rate of 7% and the UP 1984 Unisex Pension Mortality Table or (C) the amount determined using the Applicable Interest Rate
(determined as if the benefit commencement date is the date of distribution) and the Applicable Mortality Table. 
 (C)
Grandfathered Motor Cargo Participant. For purposes of determining the benefit payable to any Grandfathered Motor Cargo Participant with an Annuity Starting Date occurring on or after January 1, 2006: 
 (1) If the Optional Form of Benefit is a Qualified Joint and Survivor Annuity, a 50% or 100% Joint and Survivor Annuity or a Five 

  

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Year Certain and Life Annuity, the greater of (A) the amount determined under Section 1.1(b)(i) above or (B) the amount determined using an
interest rate of 8% and the UP 1984 Unisex Pension Mortality Table; 
 (2) For purposes of the adjustment for a Postponed
Retirement Benefit described in Section 5.2(d), an interest rate of 8% and the UP 1984 Unisex Pension Mortality Table. 
 (iii) Offsets from Other Plans. For any purpose other than as described above, for example, for the purpose of determining the amount of any offset under Section 5.7 or benefits provided under Article XIII, Actuarial
Equivalence shall be determined based upon an interest rate of 6% and the 1971 Towers, Perrin, Forster and Crosby Forecast Mortality Table with ages set back one year. 
 (iv) Other Purposes. For any purpose other than described in Section 1.1(b)(iii) above, Actuarial Equivalence shall be
determined under Section 1.1(b)(i) above. 
 (c) “Actuary” means the individual actuary or firm of actuaries selected
by the Committee to provide actuarial services in connection with the administration of the Plan. 
 (d) “Alternative
Formula” means the benefit formula described in Section 5.3(f). 
 (e) “Annuity Starting Date” means
(1) the first day of the first period for which an amount is payable as an annuity, or (2) in the case of a benefit not payable in the form of an annuity, the first day on which all events have occurred which entitle the Participant to
such benefit. 
 (f) “Applicable Interest Rate” means 
 (i) for lump sum benefits paid before January 1, 2000, “Applicable Interest Rate” shall mean the lesser of (i) 6% or
(ii) the interest rate or rates which would be used, as of the date distribution commences, by the Pension Benefit Guaranty Corporation for purposes of determining the present value of a Participant’s benefits under the Plan if the Plan
had terminated on the date distribution commences with insufficient assets to provide benefits guaranteed by the Pension Benefit Guaranty Corporation on that date; and 
 (ii) for lump sum benefits paid on or after January 1, 2000, the “Applicable Interest Rate” shall be as described in
Section 417(e)(3) of the Code for the “lookback month” preceding the “stability period” that includes the date the distribution is made. The term “lookback month” means August, which is the fifth month preceding
the first day of the stability period containing the date of distribution. The term “stability period” means the calendar year in which the distribution is made. Notwithstanding the foregoing, for distributions made on or after
January 1, 2000 and before July 1, 2001, the Applicable Interest Rate means the lesser of (i) the “applicable interest rate” as described in Section 417(e)(3) of the Code for the second month preceding the month that
includes the date the distribution is made or (ii) the “applicable interest rate” as described in Section 417(e)(3) of the Code for the month of August preceding the calendar year that includes the date the distribution is
made. 
  

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 (iii) For lump sum benefits paid on or after January 1, 2006 and before
January 1, 2007 to a Grandfathered Overnite Participant or a Grandfathered Motor Cargo Participant, “Applicable Interest Rate” shall be the lesser of (a) the “applicable interest rate” as described in
Section 417(e)(3) of the Code for the November preceding the calendar year that includes the date the distribution is made or (b) the “applicable interest rate” as described in Section 417(e)(3) of the Code for the month of
August preceding the calendar year that includes the date the distribution is made. 
 (g) “Applicable Mortality Table”
means 
 (i) for lump sums paid before January 1, 2000, the 1971 Towers, Perrin, Forster, and Crosby Forecast Mortality
Table with ages set back one year; and 
 (ii) for lump sums paid on or after January 1, 2000, the “applicable
mortality table” prescribed by the Secretary of the Treasury for purposes of Section 417(e)(3) of the Code. 
 (h) “Benefit
Service” means, subject to the special rules described below, the number of a Participant’s years (including fractions of a year) of (i) employment as an Employee with one or more Employer Companies while such Employer Company is
an Employer Company, and (ii) employment with one or more Employer Companies while such Employer Company is an Employer Company, but not as an Employee, provided that such employment precedes the Participant’s period of employment as an
Employee. No Benefit Service credit will be given with respect to service with an Employer Company that follows a Participant’s period of employment as an Employee, unless the Participant subsequently becomes an Employee and earns at least one
month of Benefit Service in such capacity. Except as specifically provided otherwise, no Benefit Service credit will be given with respect to employment with an Employer Company prior to the date it first becomes an Employer Company. 
 (i) General. Years and months of Benefit Service shall be determined based on Hours of Service earned by a Participant in the
capacities described above in accordance with the following charts: 
 (A) Before 1992. For any Participant without at
least one Hour of Service as an Employee on or after January 1, 1992: 
  

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	 Hours of Service in Each Calendar Year
	  	 Months of Benefit Service

	Less than 1000	  	0 months
	1000 - 1050	  	6 months
	1051 - 1200	  	7 months
	1201 - 1350	  	8 months
	1351 - 1500	  	9 months
	1501 - 1650	  	10 months
	1651 - 1800	  	11 months
	1801 or over	  	12 months

 (B) On and After 1992. For a Participant with at least one Hour of Service
as an Employee on or after January 1, 1992: 
  

			
	 Hours of Service in Each Calendar Year
	  	 Months of Benefit Service

	Less Than 125	  	0 months
	125 - 249	  	1 month
	250 - 374	  	2 months
	375 - 499	  	3 months
	500 - 624	  	4 months
	625 - 749	  	5 months
	750 - 874	  	6 months
	875 - 999	  	7 months
	1000 - 1124	  	8 months
	1125 - 1249	  	9 months
	1250 - 1374	  	10 months
	1375 - 1499	  	11 months
	1500 - over	  	12 months

 Participants eligible for Benefit Service credit in accordance with this
subparagraph (B) shall receive such credit with respect to Hours of Service both preceding and following January 1, 1992. 
 (ii) Break in Service. If a Participant with no vested interest, as determined under Section 6.1, incurs one or more consecutive Breaks in Service: 
 (A) Rule of Parity. Benefit Service credit prior to the Break in Service shall not be taken into account for purposes of
calculating years of Benefit Service if the number of consecutive Breaks in Service equals or exceeds the greater of (i) the aggregate number of the Participant’s Years of Service (excluding Years of Service not required to be taken into
account by reason of any prior Breaks in Service), or (ii) six; 
  

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 (B) One-Year Hold Out. Prior to July 1, 2000, Benefit Service before such
Break in Service shall not be taken into account for purposes of calculating years of Benefit Service until the Participant completes one Year of Service after the Break in Service. 
 (iii) LTD Participant. Benefit Service with respect to an LTD Participant whose Retirement Benefits commence after
December 31, 2000 shall be calculated in accordance with the applicable table in subparagraph (i) above, but there shall be included as Benefit Service (for purposes of benefit accrual and early retirement subsidies) all years and months
while the Participant is an LTD Participant and continues to be “totally disabled” for purposes of the UPS Income Protection Plan (or a successor long term disability plan), as amended from time to time. Such Benefit Service shall be
determined as if such LTD Participant had worked at least 1500 Hours of Service in each calendar year and at least 216 Hours of Service in each month in excess of a calendar year. Provided, however, the total Benefit Service credited under this
Section 1.1(g)(iii) to an LTD Participant when aggregated with his actual Benefit Service under other Sections of this definition shall not exceed thirty-five (35) years or if lesser, the maximum service cap imposed by the particular
benefit formula applicable to the LTD Participant. No Benefit Service will be credited to a Disabled Participant while such Participant is receiving Disability Retirement Benefits or is an LTD Participant. 
 (iv) Special Rules for Acquisitions/Mergers. The Benefit Service of certain Participants who became Participants as a result of
certain acquisitions or mergers shall include the additional Benefit Service if any, described in the Appendix applicable to such Participants. 
 (i) “Beneficiary” means a beneficiary designated by the Participant or the Plan in accordance with Section 5.10. 
 (j) “Board of Directors” means the Board of Directors and/or the Executive Committee of United Parcel Service of America, Inc. 
 (k) “Break in Service” means, with respect to a Participant with at least one Hour of Service as an Employee on or after January 1, 1992, a Plan Year during which the Participant does not
complete more than 124 Hours of Service. With respect to a Participant without at least one Hour of Service as an Employee on or after January 1, 1992, “Break in Service” means a Plan Year during which a Participant does not complete
more than 500 Hours of Service (375 Hours of Service in the case of a Participant employed on a part-time basis for whom the regular time hour equivalency described in the definition of Hour of Service is used). 
 (l) “Code” means the Internal Revenue Code of 1986 as amended. 
 (m) “Committee” means the Administrative Committee of the Plan, the establishment and responsibilities of which are set forth in
Article IX. The Committee shall be and is the Plan Administrator, the agent for service of process on or with respect to the Plan and a named fiduciary with respect to this Plan. 
 (n) “Company” means all of the following corporations collectively: 
  

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 (i) United Parcel Service of America, Inc.; and 
 (ii) any corporation or trade or business that is considered to be a single employer with United Parcel Service of America, Inc., under
Code Section 414(b), (c), (m) or (o). 
 (o) “Compensation” means, generally, remuneration currently earned and
actually paid by an Employer Company or a domestic Related Employer to an employee who is a Participant in the Plan, and reported on such employee’s Form W-2 for the applicable calendar year, including basic salary or wages (without reducing
wages to account for the Participant’s elective deferral of a portion of his salary or wages, if any, pursuant to a cash or deferred arrangement described in Section 401(k) of the Code, a plan described in Section 125 of the Code, the
UPS Deferred Compensation Plan and /or the UPS Deferred Compensation Plan 2000), overtime pay, certain incentive and bonus payments, and including the value of awards made pursuant to the UPS Managers’ Incentive Plan or management incentive
awards under the United Parcel Service, Inc. Incentive Compensation Plan. Notwithstanding anything to the contrary in the immediately preceding sentence, effective for management incentive awards made under the United Parcel Service, Inc. Incentive
Compensation Plan on or after November 1, 2005, Compensation shall include the value (as of the award date) of the restricted stock unit portion of the award, even if unvested and not reported on the employee’s Form W-2 related to the year
of the award. Compensation shall not include any other payments received by the Participant, including, but not limited to, the following, notwithstanding that such payments may be included in the Participant’s Form W-2 for the applicable year:

 (i) Payments in the nature of compensation from an insurance carrier, from a state unemployment or worker’s
compensation fund, or from any health and welfare or other benefit program or plan maintained by an Employer Company or a Related Employer other than the United Parcel Service, Inc. Incentive Compensation Plan for management incentive awards
thereunder; 
 (ii) Disability payments from an insurance carrier, a state disability insurance fund, this Plan or any other
disability plan maintained by an Employer Company or a Related Employer except, effective January 1, 2007, payments from a state disability insurance fund that are applied to offset salary continuation benefits from the UPS Income Protection
Plan; 
 (iii) ‘Foreign service differentials’ or other supplemental payments made by an Employer Company or a
Related Employer to a Participant working outside his country of citizenship on account of such foreign service; 
 (iv)
Payment or reimbursement by an Employer Company or a Related Employer of relocation expenses incurred by a Participant or his family; 
 (v) The value of employee fringe benefits provided by an Employer Company or a Related Employer, including but not limited to the payment of life insurance premiums, whether or not the value of such fringe benefits is
includable in an employee’s taxable income; 
  

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 (vi) Payments made under deferred compensation plans or programs; 
 (vii) Employer contributions to any pension, profit-sharing or stock bonus plan to which the Employer Company or a Related Employer
contributes; 
 (viii) Employer contributions to any welfare benefit plan to which an Employer Company or a Related Employer
contributes; 
 (ix) Income attributable to awards under the UPS Stock Option Plan or the United Parcel Service, Inc.
Incentive Compensation Plan other than management incentive awards; provided, however, that income attributable to the vesting of that portion of a management incentive award that is made in restricted stock units shall be excluded; and 

(x) Effective January 1, 2006, bonuses paid pursuant to retention agreements paid in connection with mergers or acquisitions and
any other bonuses or payments that are not directly related to the performance of the Participant’s duties including, but not limited to: 
 (A) any bonuses paid under a general bonus payroll code; 
 (B) gift card awards; 

(C) loss prevention awards; 
 (D) referral bonuses; and 
 (E) sales lead incentive bonuses. 
 In no event shall the Compensation of any participant taken into account under the Plan for any Plan Year exceed the applicable dollar amounts for such
Plan Year determined under Section 401(a)(17) of the Code increased by the applicable cost-of-living adjustment, if any, for the calendar year sanctioned by Section 401(a)(17) of the Code. For Plan Years commencing before January 1,
1997, in determining the Compensation of a Participant, the rules of Section 414(q)(6) of the Code (as in effect immediately prior to January 1, 1997) shall apply, except that in applying such rules, the term “family” shall
include only the Participant’s Spouse and any lineal descendants of the Participants who have not attained age 19 before the close of the Plan Year. If, as a result of the application of such rules the applicable Compensation limitation is
exceeded, then such limitation shall be prorated among the affected individuals in proportion to each such individual’s Compensation as determined under this Section prior to the application of this limitation. 
 In determining a Participant’s Final Average Compensation, the $200,000 Compensation limitation shall apply retroactively with respect to
Compensation earned prior to 2002 by a Participant with at least one Hour of Service on or after January 1, 2002. Similarly, the $150,000 Compensation limitation shall apply retroactively with respect to Compensation earned prior to 1994 by a
Participant with at least one Hour of Service on or after January 1, 1994 (but without an Hour of Service on or after January 1, 2002) and the $200,000 Compensation limitation in 

  

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effect for 1989 shall be applied retroactively with respect to Compensation earned prior to 1989 by a Participant with at least one Hour of Service on or
after January 1, 1989 (but without any Hours of Service on or after January 1, 1994). However, a Participant’s Benefit shall not be less than that which he had accrued or earned as of December 31, 2001 (December 31, 1993 in
the case of a Participant without at least one Hour of Service on or after January 1, 2002 or December 31, 1988 in the case of a Participant without at least one Hour of Service on or after January 1, 1994), based on his Benefit
Service and Final Average Compensation determined as of such date. 
 Solely for the purpose of avoiding a double proration, within the
meaning of Department of Labor Regulations, Section 2530.204-2(d), in calculating a Participant’s benefit; to the extent that a Participant is credited with less than a full year’s Benefit Service for a calendar year, then the
Participant’s Compensation taken into account for such year shall be annualized by dividing such Compensation by the number of months of Benefit Service earned by the Participant for such calendar year and multiplying the result by 12.

 The Compensation of an individual who became a Participant as a result of an acquisition or merger shall include compensation, if any,
earned prior to the date such individual first became a Participant to the extent described in the applicable Appendix or in the definition of Final Average Compensation and for purposes of determining Final Average Compensation, Compensation for
periods prior to such acquisition or merger shall be determined in accordance with this Section unless otherwise specified in the Appendix applicable to such Participants. 
 (p) “Deferred Vested Benefit” means the benefit, if any, described in Section 5.2(c). 
 (q) “Disability” or “Disabled” means: 
 (i) for determinations made prior to January 1, 2003, total and permanent disability that renders the Participant unable to engage in
any substantially gainful activity for the Employer Company by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration, and it is not the result
of military service or the commission of a crime by the Participant. The Committee may require such proof of disability as will be satisfactory to it, and may withhold payments until such proof is provided; and 
 (ii) for determinations made on or after January 1, 2003, a total and permanent physical or mental impairment that qualifies a
Participant (and continues to qualify him) for a monthly disability insurance benefit under the United States Social Security Act. The determination by the Social Security Administration as to whether and when a Participant has a total and permanent
disability shall be conclusive. No other medical findings will be considered. 
 (r) “Disability Retirement Benefit” means
the benefit, if any, described in Section 5.5 or for certain Participants who became Participants as a result of certain acquisitions or mergers, the disability benefit described in the applicable Appendix. 
  

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 (s) “Domestic Partner” means, effective January 1, 2006, an individual other than a
Spouse, in a relationship with a Participant that meets the following conditions: 
 (i) Both the individual and the
Participant are at least 18 years old and mentally competent to consent to a contract, 
 (ii) The individual and the
Participant have been in a committed and exclusive relationship of mutual caring and support for at least the immediately preceding 12 months and intend to remain in the partnership permanently, 
 (iii) The individual and the Participant are jointly responsible for each other’s financial, emotional and physical well-being,

 (iv) The individual has lived with the Participant continuously for at least the immediately preceding 12 months and
intends to do so indefinitely, 
 (v) The individual is not related to the employee by blood or other relationship that would
violate applicable state law if the individual and the Participant were married (other than laws related to gender), 
 (vi)
Neither the individual nor the Participant has had a Spouse or has been in another relationship with an individual that would qualify as a “domestic partner” under this definition in the immediately preceding 12 months, 
 (vii) The relationship is registered in the applicable state or local registry, if available, 
 (viii) The individual and the Participant are the same sex, 
 (ix) Not be in the relationship solely for the purpose of obtaining benefits coverage, and 
 (x) Be unable to enter into a legal marriage because the Employee’s State of residence at his death does not recognize same sex
marriages. 
 Upon the Participant’s death, the Domestic Partner must provide an affidavit certifying the above conditions were satisfied at the time of
the Participant’s death and provide such other documentation as is requested by the Committee to evidence the relationship. 
 (t)
“Early Commencement Service Requirement” means for each Participant, the completion of the service requirement specified in the definition of Early Retirement Date applicable to such Participant. 
 (u) “Earliest Commencement Age” means for each Participant, the minimum age for the Early Retirement Date applicable to such
Participant. 
 (v) “Early Retirement Date” means the first day of any calendar month coincident with or next following the
attainment of 55 years of age and the completion of ten Years of Service, or, for a Grandfathered Motor Cargo Participant, five Years of Service, but not later than Normal Retirement Date. 
  

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 (w) “Effective Date” means September 1, 1961. 
 (x) “Employee” means (1) an individual who is employed by a domestic Employer Company, or (2) a Foreign Employee, neither of
whose terms and conditions of employment are governed by a collective bargaining agreement to which the Employer Company is a party, unless the collective bargaining agreement expressly provides for coverage under this Plan (for periods after
January 1, 1992, changes to the Plan’s benefit formula shall not apply to employees subject to a collective bargaining agreement and participating in this Plan except to the extent so provided in the applicable collective bargaining
agreement), and neither of whom is an active participant on whose behalf contributions are being made by the Employer Company under any other qualified pension or retirement plan, except any cash or deferred plan described in Section 401(k) of
the Code or the UPS Qualified Stock Ownership Plan. 
 Notwithstanding the foregoing and except to the extent provided otherwise in an
Appendix for an acquisition or merger, any individual who becomes an Employee for the first time as a result of employment with an Employer Company which first elected to participate in this Plan as of January 1, 1985, or later, shall not be
considered an Employee until such individual has completed one Year of Service during or after the first Plan Year for which the Employer has agreed to participate. 
 The term “Employee” shall not include (1) an individual employed as a leased employee as that term is defined in Section 414(n)(2) of the Code; (2) any person while assigned to Overnite’s
or UPS Freight’s Special Services Division or OMC Logistics who either (i) first became an employee of Overnite on or after September 1, 2002, or (ii) has a termination of employment and was re-employed as an employee on or after
September 1, 2002, without retaining credit for Years of Vesting Service and years of Benefit Service completed prior to such termination of employment; and (3) any person employed by Overnite or UPS Freight who is classified as a
“work at home customer service employee”. 
 Under no circumstances will an individual who performs services for a Employer
Company, but who is not classified on the payroll as an employee of the Employer Company, for example, an individual performing services for a Employer Company under a leasing arrangement, be treated as an Eligible Employee even if such individual
is treated as an “employee” of a Employer Company as a result of common law principals or the leased employee rules under Section 414(n) of the Code. Further, if an individual performing services for a Employer Company is
retroactively reclassified as an employee of a Employer Company for any reason, such reclassified individual shall not be treated as an Eligible Employee for any period prior to the actual date (and not the effective date) of such reclassification
unless the Employer Company determines that retroactive reclassification is necessary to correct a payroll classification error. 
 (y)
“Employer Company” means any Company which (1) is listed on Appendix H or (2) by action of its board of directors has elected to participate in this Plan with the consent of 

  

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United Parcel Service of America, Inc. An entity shall cease to be an Employer Company when it withdraws from the Plan in accordance with Section 7.2 or
when it ceases to be a Company. 
 (z) “ERISA” means Public Law No. 93-406, the Employee Retirement Income Security Act
of 1974, as amended from time to time 
 (aa) “Final Average Compensation” means, 
 (i) Before 2007. For calendar years prior to January 1, 2007, a Participant’s average annual Compensation for the highest
consecutive five full calendar years of employment (or actual number of consecutive full years of employment if less than five) out of the last consecutive ten calendar years of employment (or actual number of consecutive years of employment if less
than ten) preceding the earlier of the calendar year in which: 
 (A) the Participant terminated his period of employment with
the Employer Company and all Related Employers, whether by reason of retirement or other termination of employment, or 
 (B)
the Plan terminated, whether in whole or in part. 
 Notwithstanding the forgoing, if the Participant received Compensation
for the entire calendar year in which his termination of employment occurred, his Compensation for such calendar year shall be included in the calculation of his Final Average Compensation if it is to his advantage to do so. 
 (ii) After 2007. For calendar years beginning on and after January 1, 2007, a Participant’s average annual Compensation
for the highest consecutive five full calendar years of employment (or actual number of consecutive full years of employment if less than five) out of the last ten consecutive calendar years of employment preceding the earlier of the calendar year
in which: 
 (A) the Participant terminated his period of employment with the Employer Company and all Related Employers prior
to the last day of such calendar year, or 
 (B) the Plan terminated, whether in whole or in part. 
 Notwithstanding the foregoing, if the Participant received Compensation for the entire calendar year in which his termination of
employment occurred, his Compensation for such calendar year shall be included in the calculation of his Final Average Compensation if it is to his advantage to do so. Further, if a Participant’s Compensation is zero for any calendar year that
is included in the last consecutive ten calendar years, such calendar year shall be included in determining the consecutive five-year period but shall not be included in determining the average annual Compensation for such five-year period.

  

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 (iii) Special Grandfather Rule. For a Grandfathered Participant and each other
Participant who has an accrued benefit under the Plan as of December 31, 2000, his accrued benefit in no event shall be less than his accrued benefit determined as of December 31, 2000 using his average annual Compensation for the highest
consecutive five full calendar years of employment (or actual number of consecutive full years of employment if less than five) out of the last consecutive ten calendar years of employment (or actual number of consecutive years of employment if less
than ten) preceding the calendar year in which occurs the earlier of (A) the Participant terminated his most recent period of employment included in the calculation of Benefit Service prior to December 31, 2000, whether by reason of
retirement or other termination of employment with an Employer Company, or by transfer to a position in which he is no longer an Employee or (B) December 31, 2000. 
 (iv) Special rule for Grandfathered Overnite Participants and Grandfathered Motor Cargo Participants. For purposes of avoiding a
double proration, within the meaning of Department of Labor Regulations, Section 2530.204-2(d) in calculating a Grandfathered Overnite Participant; or Grandfathered Motor Cargo Participant’s benefit, if calendar years before 2006 are taken
into account to determine Final Average Compensation, only those years in which a Grandfathered Overnite Participant or a Grandfathered Motor Cargo Participant received a year of benefit service credit under the Overnite Plan or the Motor Cargo
Plan, respectively, shall be included and any years in which the Participant did not earn a year of benefit service shall be ignored. 
 (bb)
“Five Year Certain and Life Annuity” means a reduced monthly benefit payable to a Participant for his lifetime, with a guarantee of 60 payments. If the Participant dies after the Annuity Starting Date but before receiving 60 monthly
payments, the monthly payments shall be paid to the Participant’s Beneficiary, until the Participant and his Beneficiary have received a total of 60 monthly payments. 
 (cc) “Foreign Employee” means a citizen of the United States transferred from a domestic Employer Company to employment by a foreign
corporation shall be considered an Employee of the domestic Employer Company which has entered into an agreement under Section 3121(1) of the Internal Revenue Code of 1986, as amended, to provide social security coverage for all citizens of the
United States employed by such foreign corporation, during such time as he remains employed by the foreign corporation and the foreign corporation remains covered under such agreement. 
 (dd) “Fund”, “Trust”, or “Trust Fund” means all of the assets of the Plan that are held by the Trustee for the
purposes of the Plan. 
 (ee) “Grandfathered Participant” means any Participant 
 (i) who performed an Hour of Service as an Employee on or before December 31, 2000 or was classified as an employee on the payroll of
an Employer Company on or before December 31, 2000, but was not an Employee because the terms or conditions of his employment were governed by a collective bargaining agreement which did not expressly provide for coverage under the Plan;

  

 - 14 - 

 (ii) who performs an Hour of Service as an Employee on or after January 1, 2001; and

 (iii) whose Hours of Service as an Employee prior to January 1, 2001 are not disregarded (without regard to whether
such Participant received a month of Benefit Service with respect to such Hours of Service). 
 An individual who is treated as an employee
solely as a result of the application of Code Section 414(n) shall under no circumstances be treated as a Grandfathered Participant. For purposes of clarification, a Participant shall not be treated as performing an Hour of Service as an
Employee or as having been classified as an employee on the payroll of an Employer Company before the first date as of which such Employer Company became an Employer Company. 
 (ff) “Grandfathered Motor Cargo Participant” means a Participant who was a participant in the Motor Cargo Plan on December 31,
2005. 
 (gg) “Grandfathered Overnite Participant” means a Participant who was a participant in the Overnite Plan on
December 31, 2005. 
 (hh) “Hour of Service” means each hour for which an employee is paid or entitled to be paid for
the performance of duties for an Employer Company or a Related Employer; each hour for which an employee is paid or entitled to be paid by an Employer Company or a Related Employer for periods during which no duties are performed due to vacation,
holiday, illness, short-term disability or incapacity pursuant to which payments are received in the form of salary continuation or from a short-term disability plan or worker’s compensation plan sponsored by the Employer Company or a Related
Employer or to which the Employer Company or a Related Employer contributes, layoff, jury duty, military duty which gives rise to reemployment rights under Federal law, or paid leave of absence (including a period where an employee remains on salary
continuation during a period of illness or incapacity); each hour for which back pay is awarded or agreed to by an Employer Company or a Related Employer if not already credited under this sentence; and each hour for periods during which an employee
is on an unpaid leave of absence. 
 Notwithstanding any of the foregoing, no more than 1040 Hours of Service will be credited to a
Participant for any single continuous period during which the employee performs no duties; and no credit shall be given for a payment which is made or due under a plan maintained solely for the purpose of complying with unemployment compensation or
disability insurance laws or which solely reimburses an employee for medical or medically related expenses incurred by the employee; provided, however, Hours of Service shall be credited as required under the Uniformed Services Employment and
Reemployment Rights Act of 1994 effective December 12, 1994. 
 A payment shall be deemed to be made by or due from the Employer Company
whether made by or due from the Employer Company directly or indirectly through a trust fund, insurer or other entity to which the Employer Company contributes or pays premiums, regardless of whether such contributions are for the benefit of
particular employees or are on behalf of a group 

  

 - 15 - 

 
of employees in the aggregate. Stated generally, Hours of Service credited to a Participant during a period of absence as described above shall be credited
at the same rate at which the Participant would have normally been credited with Hours of Service but for the absence; provided however, that the crediting of Hours of Service shall in all events be consistent with the terms of Department of Labor
Regulations, Section 2530.200b-2 and 3. 
 Notwithstanding the foregoing and, except as provided below, only for the purpose of
determining whether a Break in Service has occurred for purposes of eligibility for participation under Section 2.1 or vesting Section 6.2 of the Plan, there shall be treated as Hours of Service, with respect to a Participant who is an
Employee on or after January 1, 1985, and who is absent from work (i) by reason of the pregnancy of the Participant, (ii) by reason of the birth of a child of the Participant, (iii) by reason of the placement of a child with the
Participant in connection with the adoption of a child by the Participant, or (iv) for purposes of caring for a child of the Participant immediately following its birth or placement, either: 
 (i) the Hours of Service which otherwise, normally would have been credited to such Participant but for the absence, or 
 (ii) if the Plan is unable to determine the number of Hours of Service described in (1), eight hours per day of absence. 
 No credit will be given with respect to any pregnancy or placement of a child unless the Participant complies with any reasonable request which the Committee may make
for information needed to establish (i) the reason for the Participant’s absence or (ii) the number of days of absence attributable to a reason for which Hours of Service will be credited under this paragraph. No more than 501 Hours
of Service shall be credited to a Participant by reason of any one pregnancy or placement and no Hours of Service shall be credited under this paragraph if such Hours of Service also are credited under the first paragraph of this Section.

 In determining the Hours of Service for an Employee classified on the payroll as a part-time employee for which specific records of hours
are not kept, an Employee shall be credited with 190 Hours of Service for each regularly-scheduled calendar work month on or after January 1, 2000 in which such Participant would, under the rules described above, have earned at least one Hour
of Service. Prior to January 1, 2000, such Participant shall be credited with 108 Hours of Service for each such month; provided however, if crediting such Participant with 190 Hours of Service for such month would result in a greater benefit,
then such Participant shall be credited with 190 Hours of Service. 
 In determining the Hours of Service for an Employee classified on the
payroll as (i) a full-time employee for which specific records of hours are not kept, or (ii) as non-management employees who are paid on a basis other than hourly (e.g. sleeper teams), an Employee shall be credited with 216 Hours of
Service, for each regularly-scheduled calendar month in which such Employee would, under the rules described above, have earned at least one Hour of Service. 
 An individual who is treated as an employee of an Employer Company or a Related Employer solely as a result of the operation of the rules under Code Section 414(n) shall be credited with Hours of Service with an
Employer Company or a Related Company as required under Code Section 414(n). 
  

 - 16 - 

 For an individual who became a Participant as a result of a certain acquisition or merger, credit, if
any, for hours of service completed before such Participant became an Employee shall be determined in accordance with the applicable Appendix. 
 (ii) “Integrated Formula” means the benefit formula described in Section 5.3(e). 
 (jj) “Joint and
Survivor Annuity”, “Joint and 50% Survivor Annuity”, and “Joint and 100% Survivor Annuity” means the Optional Form of Benefit described in Section 5.4(d)(ii). 
 (kk) “LTD Participant” means a Participant who, as of the time he terminates employment with all Employer Companies and Related
Employers, has (i) completed five Years of Service, (ii) is a full-time Employee and (iii) has been approved for disability benefits under the UPS Income Protection Plan (or a successor long term disability plan), as amended from time
to time. 
 (ll) “Motor Cargo Plan” means the Pension Plan for Employees of Motor Cargo as in effect on December 31,
2005. 
 (mm) “Normal Form” means 
 (i) For a Participant without at least one Hour of Service as an Employee on or after January 1, 1992, the Single Life Annuity and
120-Monthly Guarantee; and 
 (ii) For a Participant with at least one Hour of Service as an Employee on or after
January 1, 1992, a Single Life Only Annuity. 
 (nn) “Normal Retirement Benefit” means the benefit described in
Section 5.2(a). 
 (oo) “Normal Retirement Date” means, for individuals who become Participants on or after
January 1, 1989, the first day of the calendar month coincident with or next following the later to occur of (i) the Participant’s attainment of age 65 or (ii) the Participant’s earning of five Years of Service or, if
earlier, the fifth anniversary of his participation in this Plan. For an individual who became a Participant prior to 1989, a Grandfathered Overnite Participant, or a Grandfathered Motor Cargo Participant, Normal Retirement Date means the first day
of the calendar month coincident with or next following the Participant’s attainment of age 65. 
 (pp) “Optional Form of
Benefit” means an optional form of benefit other than a single sum amount. 
 (qq) “Overnite” means Overnite
Corporation or Overnite Transportation Company. 
 (rr) “Overnite Plan” means the Retirement Plan for Employees of Overnite
Transportation Company as in effect on December 31, 2005. 
  

 - 17 - 

 (ss) “Participant” means an Employee who has satisfied the eligibility requirements of
Article II hereof. 
 (tt) “Pre-2001 Participant” means a Participant who does not have an Hour of Service on or after
January 1, 2001. 
 (uu) “Pre-2006 Motor Cargo Benefit Service” means for each Grandfathered Motor Cargo Participant
the least of (i) 30 minus his actual number of years of UPS Freight Service completed after 2005, (ii) his actual number of years of pre-2006 Benefit Service described in Appendix K, or (iii) 25 years. 
 (vv) “Pre-2006 Motor Cargo Formula” means the benefit formula described in Section 5.3(c). 
 (ww) “Pre-2006 Overnite Benefit Service” means the pre-2006 Benefit Service described in Appendix J. 
 (xx) “Plan” means the United Parcel Service Retirement Plan, also called the UPS Retirement Plan, as set forth herein, as the same may
hereafter be amended from time to time by written resolution of the Board of Directors. 
 (yy) “Plan Year” means a calendar
year, except that the first Plan Year shall begin September 1, 1961 and end December 31, 1961. 
 (zz) “Postponed
Retirement Benefit” means the benefit payable under Section 5.2(d). 
 (aaa) “Postponed Retirement Date” means
the first day of the calendar month coincident with or next following a Participant’s actual retirement, when that retirement is later than his Normal Retirement Date. 
 (bbb) “Preretirement Survivor Annuity” means the benefit described in Section 5.6. 
 (ccc) “Present Value” The term “Present Value” means the single sum amount of such benefit based on the Applicable Interest
Rate and the Applicable Mortality Table. Notwithstanding the foregoing, with respect to distributions made on or after January 1, 2000 and before July 1, 2000 and with respect to distributions made to Participants who terminated prior to
January 1, 2000, the single sum amount shall be the greater of the amount determined without regard to Section 1.1(e)(ii) and 1.1(f)(ii) or the amount determined taking into account Sections 1.1(e)(ii) and 1.1(f)(ii). Additionally, the
single sum amount of the Participant’s benefit shall not be less than the single sum benefit the Participant would have received based on his benefit accrued as of the earlier of his date of termination or June 30, 2000 calculated using an
interest rate of 6% and the Applicable Mortality Table under Section 1.1(f)(i). 
 (ddd) “Qualified Joint and Survivor
Annuity” means a reduced monthly benefit payable to the Participant for his lifetime, and following his death, 50% of the monthly benefit paid to the Participant shall be payable to the person who was his Spouse as of the Annuity Starting
Date, and to whom the Participant is married at his death provided such Spouse survives the Participant. The last payment of such benefit shall be made as of the first day of the month in 

  

 - 18 - 

 
which the death of the last to die of the Participant and his Spouse has occurred. This benefit shall be the Actuarial Equivalent of the Normal Form of the
Participant’s benefit. 
 (eee) “Related Employer” means (1) any other corporation on and after the date that it,
together with the Employer Company, is a member of a controlled group of corporations as described in Section 414(b) of the Code; (2) any other trade or business (whether or not incorporated) on and after the date that it and the Employer
Company are under common control as described in Section 414(c) of the Code; and (3) any organization (whether or not incorporated) on and after the date that it, together with the Employer Company, is a member of an affiliated group of
employers as described in Section 414(m) of the Code. 
 (fff) “Retirement Benefit” means a Normal Retirement Benefit,
Early Retirement Benefit, Deferred Vested Benefit, and a Postponed Retirement Benefit. 
 (ggg) “RPA Benefit Service” means
the sum of (i) years of Benefit Service completed before 2001 and (ii) years of Benefit Service completed after 2000 for an Employer Company described in Appendix F as providing benefits under the RPA Benefit Formula, in each case
excluding years of Benefit Service prior to the date an individual first became a Participant in the Plan as a result of an acquisition or merger unless expressly provided in the applicable Appendix. 
 (hhh) “RPA Formula” means the benefit formula described in Section 5.3(a). 
 (iii) “RPA Points” has the meaning ascribed to such term in Section 5.3(a)(iii). 
 (jjj) “Single Life Only Annuity” means a monthly benefit continuing for the life of the Participant only. The last payment of a Single
Life Only Annuity shall be made as of the first day of the month in which the death of the Participant occurs. 
 (kkk) “Single Life
Only Annuity and 120-Monthly Guarantee” means the monthly benefit described in Section 5.4(d)(iii). 
 (lll) “Social
Security Amount” with respect to an Employee who is a Participant, means the yearly Primary Old Age Insurance benefit which a Participant is eligible or may become eligible to receive at the age at which unreduced Primary Old Age Insurance
benefits commence (whether or not such application is made by the Participant) under the provisions of the Federal Social Security Act (as it is in effect on his Normal Retirement Date or earlier termination of employment with the Employer Company
or any member of an affiliated group of which the Employer Company is a part), which amount shall be determined by the Committee under rules adopted by it based upon: 
 (i) the assumption that the Participant has made or will make proper and timely application for such benefits; 
 (ii) if a Participant documents his salary history to the Committee, such history, provided, however, that for such history to be used in
lieu of the estimated amount determined under paragraphs (iii) and (iv) below, the Participant must supply such history to the Committee no later than one year following the later of (A) the Participant’s termination of
employment or (B) the time when the Participant is notified of the Retirement Benefit to which he is entitled. 
  

 - 19 - 

 (iii) subject to paragraph (ii), above, an estimated preseparation or preretirement
salary history with respect to the Participant; and 
 (iv) with respect to a Participant whose employment terminated for
reason of retirement or otherwise prior to his Normal Retirement Date, on the assumption that the Participant continued in employment with the Employer Company to his Normal Retirement Date at the rate of compensation as in effect on his earlier
date of retirement or termination of employment. 
 In determining a Participant’s Social Security Amount based upon such
Participant’s salary history pursuant to paragraphs (ii), (iii) and (iv) above, the value of deferred compensation shall be disregarded, except that elective contributions (1) under a qualified cash or deferred arrangement
described in Section 401(k) of the Code, or (2) to a tax sheltered annuity described in Section 403(b) of the Code, if any, may be considered as part of such salary history. 
 (mmm) “Social Security Leveling Option” means for a Grandfathered Overnite Participant, the Optional Form of Benefit described in
Section 5.4(d)(v). 
 (nnn) “Spouse” means that one person who is recognized under applicable law of the State of the
Employee’s residence as the Employee’s Spouse on the earlier of (a) his date of death, or (b) his Annuity Starting Date. 
 (ooo) “Trust Agreement” or “Trust Agreements” means the trust agreements establishing the UPS Retirement Plan Trust, as restated effective as of January 1, 1976, including any future amendments and
modifications thereof, which form a part of this Plan. 
 (ppp) “Trustee” means the corporations or individuals so
designated by the Board of Directors to hold assets of the Plan for the purposes of the Plan. 
 (qqq) “UPS Freight Formula”
means the benefit formula described in Section 5.3(b). 
 (rrr) “UPS Freight Service” means the sum (not to exceed 30)
of (i) the Pre-2006 Overnite Benefit Service and (ii) the number of years of Benefit Service completed after 2005 for an Employer Company described on Appendix G as providing benefits under the UPS Freight Formula. 
 (sss) “Year of Service” means, with respect to each Participant with at least one Hour of Service as an Employee on or after
January 1, 1992, each calendar year in which he completes not less than 750 Hours of Service (whether or not as an Employee) with the Employer Company or any Related Employer. With respect to any other Participant without at least one Hour of
Service as an Employee on or after January 1, 1992, a Year of Service means each calendar year in which he completes not less than 1,000 Hours of Service (whether or not as an Employee) with the Employer Company or a Related Employer.

  

 - 20 - 

 An LTD Participant and a Participant who is receiving a Disability Retirement Benefit shall not earn Year
of Service credit while he is an LTD Participant or receiving a Disability Retirement Benefit. Year of Service credit, if any, of an individual who became a Participant as a result of an acquisition or merger shall include the additional Years of
Service credit, if any, described in the Appendix applicable to such Participant. 
 SECTION 1.2. Construction. Where required words
used in the masculine gender shall include the feminine gender. Words used in the singular or plural shall be construed as if plural or singular, respectively, where they would so apply. 
  

 - 21 - 

 ARTICLE II 
 ELIGIBILITY FOR PARTICIPATION 
 SECTION 2.1. Eligibility Requirements. Any Employee included as a
Participant under the provisions of the Plan as in effect immediately prior to January 1, 1976 shall continue to participate in accordance with the provisions of this amended and restated Plan. Any other Employee who as of January 1, 1976
has both attained age 25 and completed not less than 1,000 hours of employment in the 12-month period following his date of employment or in any subsequent Plan Year shall became a Participant on January 1, 1976. 
 After January 1, 1976, in Plan Years beginning before January 1, 1985, the participation of any Employee eligible to become a Participant shall
commence as of the earliest January 1 or July 1 as of which he had both attained age 25 and completed not less than 1,000 hours of employment in the 12-month period following his date of employment or in any subsequent Plan Year. Any
Employee not included as a Participant on January 1, 1985, who as of such date has both attained age 21 and completed not less than 1,000 hours of employment in the 12-month period following his date of employment or in any subsequent Plan Year
shall become a Participant on January 1, 1985. 
 In Plan Years beginning after December 31, 1984, but prior to January 1,
1992, the participation of any Employee eligible to become a Participant shall commence as of the earliest January 1 or July 1 as of which he had both attained age 21 and completed not less than 1,000 hours of employment in the 12-month
period following his date of employment or in any subsequent Plan Year. 
 In Plan Years beginning after December 31, 1991, the
participation of any Employee eligible to become a Participant shall commence immediately following the date as of which he has both attained age 21 and completed a 12-month period of employment, measured from his date of hire or the beginning of
any subsequent Plan Year, during which he earned not less than 750 Hours of Service. 
 Notwithstanding the foregoing, any Employee who is
covered by a collective bargaining agreement which does not provide for his inclusion in this Plan shall not be eligible to commence or continue actively to participate in this Plan, nor shall any Employee who is an active participant on whose
behalf contributions are being made by UPS under any other qualified pension or retirement plan (except any cash or deferred plan described in Section 401(k) of the Code or the UPS Qualified Stock Ownership Plan) be eligible to commence or to
continue actively to participate in this Plan. 
 Any person who leaves the Employer Company’s service after becoming eligible to
participate shall again become a Participant immediately upon his return to the Employer Company’s service, unless he has no vested right under the Plan and the number of his consecutive Breaks in Service equals or exceeds the greater of
(i) the aggregate number of his years of prior service (excluding Years of Service not required to be taken into account by reason of any prior Breaks in Service), or (ii) with respect to a Break in Service incurred by a person who is an
Employee on or after January 1, 1985, regardless of when the Break in Service 

  

 - 22 - 

 
occurred, six. If the condition of clause (i) or clause (ii), as applicable, is satisfied, the Employee will be treated as a new Employee for purposes
of this Section 2.1. 
 Each Grandfathered Overnite Participant and Grandfathered Motor Cargo Participant shall become a Participant as
of January 1, 2006. 
  

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 ARTICLE III 
 FUNDING 
 SECTION 3.1. Funding Method and Policy. The Employer Companies shall contribute to
the Plan with respect to each Plan Year an amount sufficient to satisfy their obligations hereunder and the minimum funding standard, which shall be considered met if at the end of each Plan Year, the Plan insofar as it relates to each Employer
Company does not have an accumulated funding deficiency, as defined in Section 302 of ERISA. Additional amounts may be contributed, in the Employer Companies’ discretion. 
 The funding method shall be contributions from the Employer Companies and the funding policy shall be such as is consistent with the objectives of the
Plan. 
 SECTION 3.2. Establishment of Funding Standard Account. The Committee hereby establishes a funding standard account which
shall be maintained in accordance with Section 302 of ERISA. Each Employer Company shall contribute to the Plan with respect to each Plan Year an amount sufficient to prevent the occurrence of an accumulated funding deficiency insofar as it is
concerned. The Committee shall notify each Employer Company of the existence of an accumulated funding deficiency but failure to so notify the Employer Company shall not relieve the Employer Company from their obligations hereunder. The Committee
shall take whatever action is appropriate to prevent an accumulated funding deficiency, including making application for a variance from the minimum funding standard or an extension of amortization periods, or establishing an alternative minimum
funding standard in accordance with Sections 303, 304 and 305 of ERISA. 
 SECTION 3.3. Payment of Contributions. An Employer Company
may pay its contribution for any Plan Year on any date or dates, provided, however, that the total amount of the Employer Company’s contribution for any Plan Year shall be paid in full not later than the last day for timely filing of its
Federal income tax return for the year with respect to which the contribution is made, including extensions thereof granted by the Internal Revenue Service. In determining when to make its contributions as aforesaid, the Employer Company shall be
mindful of the quarterly contribution rules described in Section 412(m) of the Code. 
 SECTION 3.4. Contributions by Employer.
All contributions to this Plan to fund the benefits described in Article IV shall be made only by the Employer Companies. Except as described in Article XII with respect to medical benefits funded by means of this Plan, no Participant
contributions shall be required or permitted. 
 SECTION 3.5. Permissible Contributions and Irrevocability. Any amounts contributed by
the Employer Company pursuant to this Article III may be contributed by the Employer Company in cash or other property. In no such event and under no circumstances shall such contributions, or any part thereof, revert to or be recoverable by
the Employer Company until all obligations under this Plan have been fully satisfied as provided in Section 7.5, except as follows: 
 (a) in the case of a contribution, or any part thereof, made under a mistake of fact, the Employer Company may recover such contribution within one year of payment; and 
  

 - 24 - 

 (b) because all contributions are conditioned on deductibility, in the event that a contribution cannot
be deducted by the Employer Company pursuant to Section 404 of the Code, the Employer Company shall recover such contribution, to the extent disallowed, within one year after the disallowance of the deduction. 
 The amount which may be returned to the Employer Company is the excess of: (a) the amount contributed by the Employer Company over (b) the
amount that would have been contributed by the Employer Company had there not occurred a mistake of fact or a mistake in determining the deduction. Earnings attributable to the excess contribution may not be returned to the Employer Company, but
losses attributable thereto must reduce the amount to be so returned. 
  

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 ARTICLE IV 
 ELIGIBILITY FOR BENEFITS 
 SECTION 4.1. Application for Benefits. Each Participant shall make
written application to the Committee, or its designated representative, for Retirement Benefits, other than a Disability Benefit, under this Plan at least sixty (60) days, but not more than ninety (90) days, prior to the first day of the
month on which the benefits applied for are to be paid, on a form or forms to be provided by the Committee for this purpose. The Committee may require each applicant for Retirement Benefits to submit such information as may reasonably be required
for the proper administration of the Plan. Except for good cause shown, or unless the delay is due to the failure of the Committee to furnish the necessary information to the Participant at his last known address as indicated on the Employer’s
records, failure to submit such an application within the time prescribed shall result in the removal of any obligation to pay any benefits that would have been payable, had the application been timely filed, prior to the date on which such an
application is delivered to the Committee. The falsity of any statement material to an application or the furnishing of fraudulent information or proof shall be sufficient reason for the recapture, by means of suspension or discontinuance of
benefits, or otherwise, of any excess benefits, if any, paid under this Plan. 
 SECTION 4.2. Normal Retirement Benefit. Each
Participant who has attained his Normal Retirement Date may retire from the service of an Employer Company and all Related Employers and upon so retiring shall be paid a pension in an amount determined under Article V. Payment of such a pension
shall commence: 
 (a) In the case of a Participant who retires on his Normal Retirement Date, on that date, and 
 (b) In the case of a Participant who retires later than his Normal Retirement Date, on his Postponed Retirement Date. 
 The benefit payable under this Section 4.2 shall not be less than his “early retirement benefit” determined in accordance with Section 411(a)(9) of
the Code and the regulations thereunder. 
 SECTION 4.3. Early Retirement Benefit. A Participant who attains his Early Retirement Date
while in the active employ of an Employer Company and all Related Employers, and who retires at any time thereafter and prior to his Normal Retirement Date, may elect to receive an Early Retirement Benefit in an amount determined under
Section 5.2(b), commencing on the first day of any month coincident with or immediately following his termination of employment with an Employer Company and all Related Employers, provided he has complied with the application provisions of
Section 4.1. 
 SECTION 4.4. Deferred Vested Benefit. 
 (a) In general. A Participant who has five or more Years of Service will be eligible for a Deferred Vested Benefit if (i) his employment with
an Employer Company and all Related Employees is terminated other than by reason of death before the earliest date on which he would be eligible for retirement under the terms of Sections 4.2 or 4.3, and (ii) he does not later reenter

  

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the service of any Employer Company or Related Employer. Said benefit shall commence on the first day of any month after his Earliest Commencement Age, but
no later than his Normal Retirement Date, provided he has complied with the provisions of Section 4.1. The amount of such benefit shall be determined under Article V. 
 SECTION 4.5. Postponed Retirement Benefit. A Participant who terminates employment with an Employer Company and all Related Employers after his
Normal Retirement Date shall be entitled to a benefit in an amount determined under Article V. Payment of such pension shall commence as of his Postponed Retirement Date. 
 SECTION 4.6. Disability Retirement Benefit. 
 (a) Eligibility. A Participant with at least ten
(10) Years of Service who is not approved for disability income benefits under the UPS Income Protection Plan (or a successor long term disability plan) or who has exhausted his benefits under the UPS Income Protection Plan (or successor long
term disability plan) shall be eligible for a Disability Retirement Benefit determined under Article V if he terminates employment with the Employer Company and all Related Employers due to a Disability before his Early Retirement Date or after
December 31, 2006 and he makes an application for a Disability Retirement Benefit as described in Section 4.6(b). However, a Participant who has attained his Early Retirement Date or Normal Retirement Date prior to experiencing a
Disability will be eligible to elect to receive his Early Retirement Benefit or Normal Retirement Benefit instead of a Disability Retirement Benefit. 
 (b) Disability Application. A Participant must make a written application for a Disability Retirement Benefit to the Committee in accordance with Section 4.1. If the application for a Disability Retirement
Benefit is approved by the Committee, the first monthly payment of the Disability Retirement Benefit shall begin with the first calendar month following the month in which the Committee determines the Participant is entitled to a Disability
Retirement Benefit but the first such payment shall include a payment for each calendar month during which the Participant is Disabled from (i) the later of (A) the date the Participant made an application for Disability Retirement
Benefits or (B) the date the Participant made an application for Social Security benefits through (ii) the benefit commencement date. No interest shall be paid on such make-up payments. 
 SECTION 4.7. Termination of Disability. If a Participant receiving a Disability Retirement Benefit shall subsequently cease to be Disabled, his
Disability Retirement Benefit shall cease, and he may, if he meets the eligibility requirements, apply for a Normal Retirement Benefit or an Early Retirement Benefit. If the Participant’s application is approved, payments under either the
Normal Retirement Benefit or Early Retirement Benefit shall commence as of the first day of the month following the termination of the Disability Retirement Benefit (benefit payments cannot commence prior to the Early Retirement Date and will not
commence retroactively if timely application is not made to the Plan.) 
  

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 ARTICLE V 
 AMOUNT AND PAYMENT OF BENEFITS 
 SECTION 5.1. Benefits Limited by Plan Provisions in Effect;
Retiree Benefit Increases. 
 (a) Benefits Subject to Limits of Plan Provisions in Effect. The benefit to which a Participant
under this Plan is entitled shall be determined by the provisions of the Plan which were in effect on the date of the Participant’s retirement, death, or the date he otherwise ceases to accrue Benefit Service, whichever is the earliest. No
amendment made to the Plan after such date shall affect the entitlement of a Participant to any benefit hereunder, unless the amendment specifically provides to the contrary. 
 (b) Benefit Increase After December 31, 1984, for Retirees in Pay Status as of January 1, 1985. Notwithstanding the foregoing provisions
of this Section 5.1, each benefit payment made after December 31, 1984: 
 (i) to a Participant who retired from
service with an Employer Company (but not including a Participant who left service with an Employer Company for reasons other than death or disability before being eligible to retire), and who was receiving benefit payments under this Plan as of
January 1, 1985, or to a beneficiary of such Participant, 
 (ii) to a Participant who become totally and permanently
disabled on or before January 1, 1985, while in service with an Employer Company, or to a beneficiary of such a Participant, and 
 (iii) to the beneficiary of a Participant who died on or before January 1, 1985, while in service with an Employer Company 
 shall be 110% of the benefit which would otherwise be payable under the provisions of the Plan. 
 For payments after
December 31, 1988, to Participants (and their beneficiaries) entitled to the benefit described in paragraph (c) below, the benefit described in this paragraph (b) shall be superseded and replaced by the benefit described in paragraph
(c). 
 (c) Benefit Increase After December 31, 1988, for Retirees in pay Status as of September 1, 1979. Notwithstanding
the foregoing provisions of this Section 5.1, each benefit payment made after December 31, 1988: 
 (i) to a
Participant who retired from service with an Employer Company (but not including a Participant who left service with an Employer Company for reasons other than death or disability before being eligible to retire) and who was receiving benefit
payments under this Plan as of September 1, 1979, or to a beneficiary of such a Participant, 
 (ii) to a Participant who
became totally and permanently disabled on or before September 1, 1979, while in service with an Employer Company, or to a beneficiary of such a Participant, and 
  

 - 28 - 

 (iii) to a beneficiary of a Participant who died on or before September 1, 1979,
while in service with an Employer Company 
 shall be increased so that it is equal to the sum of (A), (B), and (C) below: 
 (A) The Participant’s original monthly benefit (or the Participant’s beneficiary’s share of such benefit, in the case of a
beneficiary entitled to monthly payments) calculated under the Plan at the time of retirement, death or disability without regard to the 10% benefit increase provided by paragraph (b) above, 
 (B) The amount in subparagraph (1) above multiplied by the applicable factor set forth in Appendix B to this Plan for the year the
Participant retired, died or became totally and permanently disabled and as a result ceased to be employed by an Employer Company, which factor represents 75% of the actual percentage increase in the Consumer Price Index from the year in which
the Participant retired, died or became disabled through December 31, 1987 (adjusted to take into account fluctuations in the Consumer Price Index within each such year), and 
 (C) The amount of the 10% benefit increase provided pursuant to the paragraph (b) above. 
 For payments after December 31, 1994, to Participants (and their beneficiaries) entitled to the benefit described in paragraph (d) below, the
benefit described in this paragraph (c) shall be superseded and replaced by the benefit described in paragraph (d). 
 (d) Benefit
Increase after December 31, 1994, for Retirees in Pay Status as of January 1, 1985. Notwithstanding the foregoing provisions of this Section 5.1, each benefit payment made after December 31, 1994: 
 (i) to a Participant who retired from service with an Employer Company (but not including a Participant who left service with an Employer
Company for reasons other than death or disability before being eligible to retire) and who was receiving benefit payments under this Plan as of January 1, 1985, or to a beneficiary of such a Participant; 
 (ii) to a Participant who became totally and permanently disabled on or before January 1, 1985, while in service with an Employer
Company, or to a beneficiary of such a Participant, and 
 (iii) to the beneficiary of a Participant who died on or before
January 1, 1985, while in service with an Employer Company 
 shall be increased so that it is equal to the sum of (A) and (B) below:

 (A) The Participant’s original monthly benefit (or the Participant’s beneficiary’s share of such benefit, in
the case of a beneficiary entitled to monthly payments) calculated under the Plan at the time of retirement, death or disability without regard to the 10% benefit increase provided by paragraph (b) above, and without regard to any increase
provided by paragraph (c) above; and 
  

 - 29 - 

 (B) The amount in subparagraph (1) above multiplied by the by the applicable factor
set forth in Appendix C to this Plan for the year the Participant retired, died or became totally and permanently disabled and as a result ceased to be employed by an Employer Company, which factor represents 75% of the actual percentage
increase in the Consumer Price Index from the year in which the Participant retired, died or became disabled through December 31, 1991 (adjusted to take into account fluctuations in the Consumer Price Index within each such year). 

SECTION 5.2. Benefit Amounts. 
 (a) Accrued Benefit. The amount of the monthly pension payable to a Participant in the Normal Form commencing as of his Normal Retirement Date or, if later, the date he actually retires determined as follows: 
 (i) General. For a Participant other than a Grandfathered Participant or a Pre-2001 Participant, the sum of A, B and C, where

 (A) = the RPA Formula benefit, if any, 
 (B) = the UPS Freight Formula benefit, if any, and 
 (C) = the Pre-2006 Motor Cargo Formula benefit, if any. 
 (ii) Grandfathered Participant. For a Grandfathered Participant, the greater of A, B or C, where 
 (A) = the benefit described in Section 5.2(a)(i) determined as if he were not a Grandfathered Participant; 
 (B) = the Alternative Formula benefit; and 
 (C) = the Integrated Formula benefit. 
 (iii) Pre-2001 Participants. For a Pre-2001
Participant the greater of A or B, where 
 (A) = the Alternative Formula benefit; and 
 (B) = the Integrated Formula benefit. 
 (b) Early Retirement Benefit. 
 (i) Normal Commencement. A Participant who
terminates employment with all Employer Companies and Related Employers on or after the Participant’s Early Retirement Date but before his Normal Retirement Date shall be entitled to his Accrued Benefit, determined as of his most recent
termination of employment with all Employer Companies and Related Employers. The Accrued Benefit shall be payable at his Normal Retirement Date. 
  

 - 30 - 

 (ii) Early Commencement. A Participant who is eligible for an Early Retirement
Benefit under Section 5.2(b)(i) may commence such benefit at any time on or after he terminates employment with all Employer Companies and Related Employers and before his Normal Retirement Date provided that the amount of such benefit shall be
reduced for early commencement in accordance with the following: 
 (A) General. For a Participant other than a
Grandfathered Participant or a Pre-2001 Participant, the early retirement benefit that commences before his Normal Retirement Date shall be the sum of his early retirement benefit under the RPA Formula, his early retirement benefit determined under
the UPS Freight Formula and the early retirement benefit determined under the Pre-2006 Motor Cargo Formula. 
 (1) RPA
Formula Benefit Reductions. The benefit determined under the RPA Formula shall be reduced as follows for early commencement: 
 a. Less Than 20 Years of Benefit Service. With less than 20 years of Benefit Service as of his Annuity Starting Date, the benefit under the RPA Formula shall be reduced by one-half of one percent (0.5%) for each month by which
the Participant’s Annuity Starting Date precedes his Normal Retirement Date. 
 b. 20 Years or More of Benefit
Service. With 20 or more years of Benefit Service as of his Annuity Starting Date, the benefit under the RPA Formula shall be reduced by one-quarter of one percent (0.25%) for each month by which the Participant’s Annuity Starting Date
precedes his Normal Retirement Date. 
 c. 25 or More Years of Benefit Service. With 25 or more Years of Benefit
Service as of his Annuity Starting Date, the benefit shall be equal to the greater of i. or ii. below: 
 i. the benefit
calculated under the Alternative Account Formula under Section 5.3(a) without any reduction applied; or 
 ii. the
benefit calculated under the Integrated Account Formula under Section 5.3(b) reduced by one-quarter of one percent (0.25%) for each month by which the Participant’s Annuity Starting Date precedes the first day of the month that
coincides with or immediately follows his 60th birthday. 
  

 - 31 - 

 (2) UPS Freight Formula Benefit Reductions. The benefit determined under the UPS
Freight Formula shall be reduced as follows for early commencement: 
 a. General. Except as provided below, the
benefit under the UPS Freight Formula will be reduced in accordance with the following table: 
  

				
	 Age at Annuity Starting Date
	  	Factor	 
		
	 55
	  	50	%
	 56
	  	55	%
	 57
	  	60	%
	 58
	  	65	%
	 59
	  	70	%
	 60
	  	75	%
	 61
	  	80	%
	 62
	  	85	%
	 63
	  	90	%
	 64
	  	95	%

 (Amounts in the table above shall be prorated on a monthly basis for fractions of a
year.) 
 b. 30 years of Benefit Service. The benefit under the UPS Freight Formula for a Participant who has attained
at least age 55 and completed at least 30 years of Benefit Service as of his Annuity Starting Date shall not be reduced. 
 c. Service After 1999 and Age 60 or More. The benefit under the UPS Freight Formula for a Participant (i) who completes at least one Hour of Service on or after December 1, 2000, or if he is a Grandfathered Overnite
Participant and his terms and conditions of employment are subject to collective bargaining (a “Represented Participant”), on or after October 22, 2004 (the “Approval Date”), and who has attained at least age 60 as of his
termination of employment: 
 i. 25 or More Years of Benefit Service. If such Participant has completed at least 25
years of Benefit Service as of his termination of employment, the benefit determined under the UPS Freight Formula shall not be reduced; or 
 ii. Less Than 25 Years of Benefit Service. If such Participant has not completed at least 25 years of 

  

 - 32 - 

 
Benefit Service as of his termination of employment, the benefit determined under the UPS Freight Formula shall be reduced in accordance with the following
table: 
  

				
	 Age at Annuity Starting Date
	  	Factor	 
		
	 55
	  	50	%
	 56
	  	55	%
	 57
	  	60	%
	 58
	  	65	%
	 59
	  	70	%
	 60
	  	85	%
	 61
	  	88	%
	 62
	  	91	%
	 63
	  	94	%
	 64
	  	97	%

 (Amounts in the table above shall be prorated on a monthly basis for fractions of a
year.) 
 iii. Represented Participant. If a Represented Participant’s termination of employment occurs when he
is a Represented Participant but before the Approval Date, the benefit payable to the Participant shall equal the benefit determined under Section 5.2(b)(ii)(A)(2) a. or b. without regard to subparagraph c. 
 (3) Pre-2006 Motor Cargo Formula Benefit Reductions. The benefit determined under the Pre-2006 Motor Cargo Formula shall be
reduced for early commencement by 0.375% for each month by which his Early Retirement Date precedes his Normal Retirement Date. 
 (B) Grandfathered Participant. For a Grandfathered Participant the early retirement benefit that commences before his Normal Retirement Date shall be the greatest of his early retirement benefit determined under
Section 5.2(b)(ii)(A) above determined as if he were not a Grandfathered Participant, his early retirement benefit determined under the Alternative Formula and his early retirement benefit determined under the Integrated Formula. 
 (1) Alternative Formula Reductions. The benefit determined under the Alternative Formula shall be reduced as follows for early
commencement: 
 a. Less Than 25 Years of Benefit Service. With less than 25 years of Benefit Service, the benefit
under the Alternative Formula shall be reduced by one-quarter of one percent (0.25%) 

  

 - 33 - 

 
for each month by which the Participant’s Annuity Starting Date precedes his Normal Retirement Date. 
 b. 25 or More Years of Benefit Service. With 25 or more Years of Benefit Service as of his Annuity Starting Date, the benefit
under the Alternative Formula shall be without any reduction. 
 (2) Integrated Formula Reductions. The benefit
determined under the Integrated Formula shall be reduced as follows for early commencement: 
 a. Less Than 25 Years of
Benefit Service. With less than 25 years of Benefit Service, the benefit under the Integrated Formula shall be reduced by one-quarter of one percent (0.25%) for each month by which the Participant’s Annuity Starting Date precedes his Normal
Retirement Date. 
 b. 25 or More Years of Benefit Service.
With 25 or more years of Benefit Service, the benefit under the Integrated Formula shall be reduced by one-quarter of one percent (0.25%) for each month by which the Participant’s Annuity Starting Date precedes the first day of the month that
coincides with or immediately follows his 60th birthday. 
 (C) Pre-2001 Participant. The Early Retirement Benefit for a Pre-2001 Participant shall be the amount determined under
(1) through (5) below, as applicable: 
 (1) Retires After August 1979 With no Hours After 1984. For a
Pre-2001 Participant who retires on or after September 1, 1979 but who earns no Hours of Service on or after January 1, 1985, the greater of the benefit calculated under the Alternative Formula or the Integrated Formula, each reduced by
one-half of one percent (0.5%) for each month by which the Participant’s Annuity Starting Date precedes his Normal Retirement Date. 
 (2) Retires After 1984 With No Hours After 1991. Except as provided in Section 5.2(b)(ii)(C)(3) below, for a Pre-2001 Participant who retires on or after January 1, 1985 but who earns no Hours of
Service as an Employee on or after January 1, 1992, the greater of the benefit calculated under the Alternative Formula or the Integrated Formula, each reduced by one-quarter of one percent (0.25%) for each month by which the
Participant’s Annuity Starting Date precedes his Normal Retirement Date. 
 (3) Retires After 1984 With No Hours After 1991 and 29 1/2 Years of Benefit
Service. For a Pre-2001 Participant who (I) retires on or after January 1, 1985, (II) who earns no Hours of Service as an Employee on or 

  

 - 34 - 

 
after January 1, 1992, (III) whose Annuity Starting Date precedes his Normal Retirement Date by 91 months or more, and (IV) who has at least
29 years and six months of Benefit Service (without regard to the rounding rules described in Section 5.2(e)), his Accrued Benefit shall be reduced in accordance with (2) above and for purposes of calculating such Participant’s
benefit amount under the Integrated Formula the term “50 percent of his Social Security Amount” shall be deemed to mean the applicable percentage of his Social Security Amount set forth in the following table: 
  

						
	Age at Retirement Date	  	 	 
	Years	  	 Months
	  	Applicable Percentage	 
	55	  	 0
	  	49.19	%
	55	  	 1
	  	49.21	%
	55	  	 2
	  	49.22	%
	55	  	 3
	  	49.24	%
	55	  	 4
	  	49.27	%
	55	  	 5
	  	49.29	%
	55	  	 6
	  	49.30	%
	55	  	 7
	  	49.32	%
	55	  	 8
	  	49.35	%
	55	  	 9
	  	49.36	%
	55	  	 10
	  	49.38	%
	55	  	 11
	  	49.40	%
	56	  	 0
	  	49.42	%
	56	  	 1
	  	49.45	%
	56	  	 2
	  	49.48	%
	56	  	 3
	  	49.51	%
	56	  	 4
	  	49.54	%
	56	  	 5
	  	49.56	%
	56	  	 6
	  	49.60	%
	56	  	 7
	  	49.63	%
	56	  	 8
	  	49.65	%
	56	  	 9
	  	49.69	%
	56	  	 10
	  	49.71	%
	56	  	 11
	  	49.74	%
	57	  	 0
	  	49.78	%
	57	  	 1
	  	49.81	%
	57	  	 2
	  	49.84	%
	57	  	 3
	  	49.89	%
	57	  	 4
	  	49.92	%
	57	  	 5
	  	49.97	%

 (4) Hours After 1991 With Less Than 20 Years Benefit Service. For a
Pre-2001 Participant with at least one Hour of Service as an Employee on or after January 1, 1992 but with less than 25 years of Benefit Service, the Early Retirement Benefit shall be equal to the greater 

  

 - 35 - 

 
of the benefit determined under the Alternative Formula or the Integrated Formula, each reduced by one-quarter of one percent (0.25%) for each month by
which the Participant’s Annuity Starting Date precedes his Normal Retirement Date. 
 (5) Hours After 1991 With 25 or
More Years of Benefit Service. For a Pre-2001 Participant with at least one Hour of Service as an Employee on or after January 1, 1992, and with 25 or more Years of Benefit Service as of his Annuity Starting Date, the Early Retirement
Benefit shall be equal to the greater of 
 a. the benefit calculated under the Integrated Formula reduced by one-quarter of
one percent (0.25%) for each month by which the Participant’s Annuity Starting Date precedes the first day of the month that coincides with or immediately follows his 60th birthday; or 
 b. the benefit calculated under the Alternative Formula without any reduction applied. 
 (c) Deferred Vested Benefit. 
 (i) Normal Commencement. A Participant who terminates employment with all Employer Companies and Related Employers after he is vested as described in Section 4.4 shall be entitled to his Accrued Benefit as of his most recent
termination of employment with all Employer Companies and Related Employers. Such Accrued Benefit shall be payable at his Normal Retirement Date. 
 (ii) Early Commencement. 
 (A) General. A Participant (other than a
Grandfathered Participant or a Pre-2001 Participant) who is eligible for a Deferred Vested Benefit and who has satisfied the Early Commencement Service Requirement may commence such benefit as of the first day of any calendar month on or after he
terminates employment with all Employer Companies and Related Employers and reaches Earliest Commencement Age but before his Normal Retirement Date, subject to the following reductions: 
 (1) RPA Formula Benefit Reductions. The benefit determined under the RPA Formula shall be reduced for early commencement by
one-half of one percent (0.5%) for each month by which the Participant’s Annuity Starting Date precedes his Normal Retirement Date. 
 (2) UPS Freight Formula Benefit Reductions. The benefit determined under the UPS Freight Formula shall be reduced in the same manner as the benefit reductions described in Section 5.2(b)(ii)(A)(2), the
reduction for early commencement of the Early Retirement Benefit. 
  

 - 36 - 

 (3) Pre-2006 Motor Cargo Formula Benefit Reductions. The benefit determined under
the Pre-2006 Motor Cargo Formula shall be reduced in the same manner as the benefit reductions described in Section 5.2(b)(ii)(A)(3), the same as the reduction for early commencement of the Early Retirement Benefit. 
 (B) Grandfathered Participant. For a Grandfathered Participant the Deferred Vested Benefit that commences before his Normal
Retirement Date shall be the greatest of: 
 (1) his reduced Deferred Vested Benefit determined under
Section 5.2(c)(ii)(A)(1) for Participants other than Grandfathered Participants, 
 (2) his benefit under the
Alternative Formula reduced by one-half of one percent (0.5%) per month for each month by which the Participant’s Annuity Starting Date precedes his Normal Retirement Date and 
 (3) his benefit under the Integrated Formula reduced for early commencement by one-half of one percent (0.5%) for each month by
which the Participant’s Annuity Starting Date precedes his Normal Retirement Date. 
 (4) December 31, 1991
Benefit. Notwithstanding the foregoing, the Deferred Vested Benefit of a Grandfathered Participant shall not be less than the Deferred Vested Benefit, if any, the Participant would have earned under the provisions of this Plan immediately prior
to January 1, 1992, taking into account for this purpose Compensation, if any, earned by the Participant through December 31, 1991 and Benefit Service earned by him through December 31, 1992, if any, reduced by one-quarter of
one percent (0.25%) instead of one-half of one percent (0.50%). 
 (C) Pre-2001 Participant. For a Pre-2001
Participant, his reduced Deferred Vested Benefit shall be the greater of the benefit calculated under the Alternative Formula or the Integrated Formula reduced as described below: 
 (1) No Hours After 1991. For a Pre-2001 Participant with at least one Hour of Service on or after September 1, 1979 but
without at least one Hour of Service as an Employee on or after January 1, 1992, the benefit shall be reduced by the following percentage thereof for each month by which the Participant’s Annuity Starting Date precedes his Normal
Retirement Date: 
 a. for terminations before January 1, 1985, one-half of one percent (0.5%); and 
 b. for terminations after December 31, 1984, one-quarter of one percent (0.25%). 
  

 - 37 - 

 (2) Hours After 1991. For a Pre-2001 Participant with at least one Hour of
Service as an Employee on or after January 1, 1992, the benefit shall be reduced by one-half of one percent (0.5%) for each month by which the Participant’s Annuity Starting Date precedes his Normal Retirement Date. 
 (3) December 31, 1991 Benefit. Notwithstanding the foregoing, the Deferred Vested Benefit of a Pre-2001 Participant shall not
be less than the Deferred Vested Benefit, if any, the Participant would have earned under the provisions of this Plan immediately prior to January 1, 1992, taking into account for this purpose Compensation earned by the Participant through
December 31, 1991 and Benefit Service earned by him through December 31, 1992 reduced by one-quarter of one percent (0.25%) instead of one-half of one percent (0.50%). 
 (d) Postponed Retirement Benefit - Subject to Section 5.9 regarding mandatory distributions, a Participant, other than a Grandfathered Motor
Cargo Participant, who terminates employment with all Employer Companies and all Related Employers after his Normal Retirement Date shall receive a benefit as of his Postponed Retirement Date equal to his Accrued Benefit determined as of his
Postponed Retirement Date. Such benefit shall be payable as of his Postponed Retirement Date. 
 A Grandfathered Motor Cargo Participant who
terminates employment with all Employer Companies and Related Employers after his Normal Retirement Date, and has not started benefit payments, shall be entitled to a benefit commencing as of his Postponed Retirement Date that is the Actuarial
Equivalent of the Accrued Benefit payable as of the later of his Normal Retirement Date or the last day of the prior Plan Year. Such Participant’s Accrued Benefit as of the last day of each Plan Year following his Normal Retirement Date is the
greater of: (1) his Accrued Benefit taking into account benefits accrued after his Normal Retirement Date or (2) the Accrued Benefit, determined as of the later of Normal Retirement Date or the end of the prior Plan Year, actuarially
adjusted for late retirement using the factors described in Section 1.1(b)(ii)(C)(2). 
 If a Grandfathered Motor Cargo Participant
commences benefits prior to his termination of employment, the benefit will be recalculated at the end of each Plan Year to reflect the actuarial increase. The additional amount accrued during each Plan Year will be offset by the benefit that is
already in pay status. 
 (e) Rounding Rules. Notwithstanding the foregoing, for purposes of determining the amount of the benefit
under the Alternative Formula or the Integrated Formula, and the early commencement reductions applicable to benefits determined under such formulas for a Grandfathered Participant and a Pre-2001 Participant, such Participant’s aggregate years
and months of Benefit Service shall be rounded up to the next full year if he has 6 or more months of Benefit Service in excess of full years of Benefit Service and shall be rounded down to the next full year if he has 5 or fewer months of Benefit
Service in excess of full years of Benefit Service. 
  

 - 38 - 

 SECTION 5.3. Formulas. 
 (a) RPA Formula. 
 (i)
Alternative Account Formula. The Alternative Account Formula is (A + B) ÷ 120, where 
 A = the Participant’s
Alternative Points times 1% of his Final Average Compensation up to $48,000; and 
 B = the Participant’s Alternative-PLUS Points times
1% of his Final Average Compensation in excess of $48,000. 
 (ii) Integrated Account Formula. The Integrated Account
Formula is (C + D) ÷ 120, where 
 C = the Participant’s Integrated Points times 1% of his Final Average Compensation and

 D = the Participant’s Integrated-PLUS Points times 1% of his Final Average Compensation in excess of the Social Security Wage Base.

 (iii) Accumulation of RPA Points. A Participant who has at least one Hour of Service as an Employee on or after
January 1, 2001 shall accumulate Alternative Points, Alternative-PLUS Points, Integrated Points and Integrated-PLUS Points (collectively, “RPA Points”) for each year and partial year of RPA Benefit Service without regard to whether
such RPA Benefit Service was completed before January 1, 2001. The points accumulated for any year of RPA Benefit Service will be equal to the RPA Points described in Appendix F to this Plan (the “RPA Schedule”) for the Employer
Company or Employer Companies for which the Participant performed the RPA Benefit Service determined in accordance with this Section 5.3(a)(iii). Credit for each year of RPA Benefit Service completed before January 1, 2001 will be
determined under Appendix F-1 as in effect on January 1, 2001 without regard to what Employer Company employed the Participant at the time the RPA Benefit Service was completed. No Participant shall earn credit for more than 12 months of RPA
Benefit Service in any Plan Year. 
 (b) UPS Freight Formula. The UPS Freight Formula equals one twelfth of the product of
(A) and (B), where: 
 A = 1.725% of the Participant’s Final Average Compensation; and 
 B = the Participant’s years and partial years of UPS Freight Benefit Service (up to a maximum of 30 years). 
  

 - 39 - 

 (c) Pre-2006 Motor Cargo Formula. The Pre-2006 Motor Cargo Benefit Formula shall equal one-twelfth
of A x B, where: 
 A = the Participant’s years of Pre-2006 Motor Cargo Benefit Service (not to exceed 25 years); and 
 B = $240.00. 
 (d) Participation in
Multiple Formulas in Same Plan Year. If a Participant has RPA Benefit Service under more than one RPA Schedule or, effective January 1, 2006, a Participant has RPA Benefit Service and UPS Freight Service, in the same Plan Year, the
benefit such Participant accrues that Plan Year will be determined as follows: 
 (i) First, determine the RPA Benefit
Service accrued under each RPA Schedule and the UPS Freight Service based on the Hours of Service with the Employer Company or Companies providing such RPA Schedule or such UPS Freight Formula; 
 (ii) Second, allocate the Benefit Service determined under (i) above to the UPS Freight Formula; 
 (iii) Third, allocate the excess of the Participant’s Benefit Service determined under (i) above, over the UPS Freight Service
allocated under (ii) above to the RPA Schedules starting with the actual service completed under the RPA Schedule that provides the highest point value and continuing with the actual Benefit Service under the RPA Schedule with the next highest
point value until the sum of the Benefit Service allocated under (ii) and the Benefit Service allocated under this (iii) equals the total actual Benefit Service or 12 months, whichever is less; 
 For example, assume a Participant has 2000 total Hours of Service for Employer Companies during the Plan Year, 874 hours are under the RPA Schedule with
the lowest point value (Schedule 3), 874 hours are under the highest RPA Point value (Schedule 1) and 252 hours are UPS Freight Service. The Participant’s total Benefit Service is 12 months. The Participant has 6 months of RPA Benefit
Service under RPA Schedule 1 and Schedule 3, and 2 months of UPS Freight Service. The Participant will be credited with 2 months of UPS Freight Service, 6 months of RPA Benefit Service under RPA Schedule 1 and 4 months of RPA Benefit
Service under Schedule 3; 
 If the Participant had 874 hours of UPS Freight Service, 874 hours of RPA Benefit Service under the RPA
Schedule with the highest point value (Schedule 1) and 252 hours of RPA Benefit Service under the RPA Schedule with the lowest point value (Schedule 3), the Participant will be credited with 6 months of UPS Freight Service, 6 months of
RPA Benefit Service under RPA Schedule 1 and 0 months of RPA Benefit Service under RPA Schedule 3. 
 (e) Integrated
Formula. A Participant’s benefit under the Integrated Formula shall be equal to the benefit determined under (i) or (ii) as applicable plus the Additional Monthly Retirement Benefit, if any, applicable to such Participant as
contained in Appendix D of the Plan. 
  

 - 40 - 

 (i) No Hours After 1996.
For a Participant who does not have at least one Hour of Service as an Employee on or after January 1, 1997, the Integrated Formula is 1/12th of 50 percent of such Participant’s Final Average Compensation less 1/12th of 50 percent of his Social Security Amount where such Participant has 30 or more years of Benefit Service. If such Participant has less than 30 years of Benefit Service at his Annuity Starting Date, the amount calculated above
shall be multiplied by a fraction, the numerator of which is the number of years of Benefit Service to his Annuity Starting Date, and the denominator of which is 30. 
 In the case of a Participant with at least one Hour of Service as an Employee on or after January 1, 1992 for whom the Normal Form of
benefit is a Single Life Only Annuity, the Integrated Formula benefit shall not be less than such Participant’s benefit under the Integrated Formula, if any, calculated in accordance with this Section 5.3(e) and payable in the form of a
Single Life Only Annuity 120 Month Guarantee, but taking into account for this purpose only that Compensation earned by the Participant through December 31, 1991 and Benefit Service earned by him through December 31, 1992. 
 (ii) Hours After 1996. For a Participant who has at least one Hour of
Service as an Employee on or after January 1, 1997, the Integrated Formula is 1/12th of 58.33 percent of
such Participant’s Final Average Compensation (as defined under the terms of this Plan as of the date of the Participant’s retirement or other termination of employment) less 1/12th of 58.33 percent of his Social Security Amount where such Participant has 35 or more years of Benefit Service. If such Participant has less than 35 years
of Benefit Service at his Annuity Starting Date, the amount calculated above shall be multiplied by a fraction, the numerator of which is the number of years of Benefit Service to his Annuity Starting Date, and the denominator of which is 35.

 (f) Alternative Formula. A Participant’s benefit under the Alternative Formula shall be equal to the benefit determined under
(i) or (ii) as applicable plus the Additional Monthly Retirement Benefit, if any, applicable to such Participant as contained in Appendix D of the Plan. 
 (i) Hours After August 1979. 
 (A) Hours After August 1979 But Not After 1984. For a Participant with at least one Hour of Service on or after September 1, 1979 but without at least one Hour of Service on or after January 1, 1985,
the Alternative Formula is $24 per month for each year of Benefit Service completed by such Participant prior to his Normal Retirement Date to a maximum of $600 per month; provided such Participant has 10 or more Years of Service prior to his Normal
Retirement Date. 
 (B) Hours After 1984 But Not After 1991. For a Participant with at least one Hour of Service on or
after January 1, 1985 but without at least one Hour of Service as an Employee on or after January 1, 1992, the Alternative Formula is $32 per month for each year of Benefit Service completed by such Participant prior to his Normal
Retirement Date or (with respect to a Participant with at least one Hour of Service on or after January 1, 1987) Postponed Retirement Date to a maximum of $960 per month; provided such Participant has 10 or more Years of Service prior to his
Normal Retirement Date or Postponed Retirement Date. 
  

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 If a Participant without at least one Hour of Service on or after January 1, 1989
has less than 10 Years of Service prior to his Normal Retirement Date or Postponed Retirement Date, the amount shall be determined as set forth in Section (A) or (B) above, as applicable, using the number of years of Benefit Service
multiplied by a fraction, the numerator of which is his number of Years of Service to Normal Retirement Date (or, for a Participant with at least one Hour of Service on or after January 1, 1987, his actual retirement date) not in excess of 10,
and the denominator of which is 10. If a Participant with at least one Hour of Service on or after January 1, 1989, and who first became a Participant in the Plan prior to January 1, 1989, has less than 5 Years of Service prior to his
Normal Retirement Date, the amount shall be determined under subparagraph (B) using the number of years of Benefit Service multiplied by a fraction, the numerator of which is his number of Years of Service to his actual retirement date, not in
excess of 5, and the denominator of which is 5. The foregoing sentence shall not apply to any individual who first became a Participant on or after January 1, 1989. 
 (ii) Hours After 1991. 
 (A) Hours After 1991 But Not After 1996. For a Participant with at least one Hour of Service as an Employee on or after January 1, 1992 but without at least one Hour of Service as an Employee on or after
January 1, 1997, the Alternative Formula is the sum of 
 (1)
1/12th of two percent (2%) of such Participant’s Final Average Compensation up to $48,000, multiplied
by his years of Benefit Service to a maximum of 30; plus 
 (2)
1/12th of one-half of one percent (0.5%) of such Participant’s Final Average Compensation in excess of
$48,000, multiplied by his years of Benefit Service to a maximum of 30. 
 (B) Hours After 1996. For a Participant with
at least one Hour of Service as an Employee on or after January 1, 1997, the Alternative Formula is the sum of 
 (1) 1/12th of two percent (2%) of such Participant’s Final Average Compensation up to the Threshold Amount, multiplied by his years of Benefit Service to
a maximum of 35; plus 
 (2) 1/12th of one-half of one percent (0.5%) of such Participant’s Final Average
Compensation in excess of the Threshold Amount, multiplied by his years of Benefit Service to a maximum of 35. 
 For purposes
of this subparagraph, the term “the Threshold Amount” means $48,000 for a Participant who was born in 1957 or later, $54,000 for a Participant who was born in or after 1951 but before 1957, and $60,000 for a Participant born in 1950 or
earlier. 
  

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 Notwithstanding the foregoing, the benefit amount calculated in accordance with this
Section 5.3(e)(ii) shall not be less than the Participant’s Accrued Benefit, if any, calculated in accordance with Section 5.3(e)(2)(i) and payable in the form of a Single Life Annuity and 120-Monthly Guarantee, taking into account
all Benefit Service earned by the Participant through December 31, 1992. 
 SECTION 5.4. Benefit Payment. 
 (a) Annuities. Except as provided in Section 5.4(e) for cash out of benefits and unless the Participant elects an Optional Form of Benefit
pursuant to Section 5.4(b), a benefit described in Section 5.2 will be paid: 
 (i) If a Participant is married on
his Annuity Starting Date, in the form of a Qualified Joint and Survivor Annuity and 
 (ii) If the Participant is not married
on the Annuity Starting Date, in the Normal Form. 
 (b) Election out of Normal Form of Benefit or Qualified Joint and Survivor
Annuity. In lieu of the Normal Form or the Qualified Joint and Survivor Annuity, a Participant who is eligible for an annuity form of benefit, may elect, at any time within the 90-day period ending on the Annuity Starting Date, to waive the
Normal Form or the Qualified Joint and Survivor Annuity in favor of one of the Actuarial Equivalent Optional Forms of Benefit described below. 
 (i) Form of Election. An election by a Participant under this Section must be in writing in a form approved by the Committee, and, if the Participant is married, such election shall not be effective unless:

 (A) the Spouse of the Participant consents to the election, and such consent (1) is in writing, (2) acknowledges
the Participant’s selection of an alternate form of benefit and/or Beneficiary, which may not thereafter be changed without spousal consent unless the Spouse’s prior consent expressly permits the Participant to change the Beneficiary
without further consent by the Spouse, (3) acknowledges the effect of such election, and (4) is witnessed by a notary public; or 
 (B) it is established to the satisfaction of a representative of the Plan that the Spouse’s consent cannot be obtained because (1) the Participant has no Spouse, (2) the Participant’s Spouse cannot
be located, or (3) one of the conditions prescribed in Treasury regulations is satisfied. 
 (ii) Spouse Affected by
Election. A Participant’s election to waive the Qualified Joint and Survivor Annuity shall be effective only with respect to the Spouse who consented to the election or who was deemed to consent pursuant to Section 5.4(b)(i)(B).

  

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 (iii) Revocation of Election. A Participant may revoke an election made under this
Section 5.4(b) at any time prior to the Annuity Starting Date. A Spouse’s consent to the waiver of the Qualified Joint and Survivor Annuity and to the specific Beneficiary and optional form designations made by the Participant is
irrevocable unless the Participant revokes his waiver election. 
 (c) Notice Requirements. Within 90 days prior to the
Participant’s Annuity Starting Date, the Committee shall provide the Participant with a written explanation of: 
 (i)
the terms and conditions of the Normal Form and the Qualified Joint and Survivor Annuity; 
 (ii) the Participant’s right
to make, and the effect of, an election to waive the Normal Form or the Qualified Joint and Survivor Annuity; 
 (iii) the
requirement that the Participant’s Spouse consent in writing to the election in accordance with the spousal consent provisions set forth in Section 5.4(b)(i); and 
 (iv) the right to make, and the effect of, a revocation of an election not to receive the Normal Form or a Qualified Joint and Survivor
Annuity. 
 (d) Optional Forms of Benefit. 
 (i) Actuarial Equivalent. Each benefit payment form described in this Section 5.4(d) will be the Actuarial Equivalent of the
Participant’s benefit payable in the Normal Form. 
 (ii) Joint and Survivor Annuity. Under the Joint and Survivor
Annuity, a reduced monthly benefit shall be paid to the Participant for his lifetime, and his beneficiary, if such beneficiary survives at the Participant’s death, shall be entitled to receive thereafter a lifetime survivorship benefit in a
monthly amount equal to 50% or 100%, as selected by the Participant, of the monthly amount which had been payable to the Participant. The last payment of the Joint and Survivor Annuity shall be made as of the first day of the month in which the
death of the last to die of the Participant and his beneficiary has occurred. This optional form shall be available to any Participant whose Annuity Starting Date is on or after January 1, 2001 without regard to whether such Participant has an
Hour of Service on or after such date. 
 Notwithstanding the foregoing, a Participant may not select a Joint and Survivor
Benefit with a Beneficiary who would not be eligible to receive the percentage survivor benefit selected under the requirements of proposed Treasury Regulation Section 1.401(a)(9)-2. 
 (iii) Single Life Annuity with 120-Month Guarantee. Under the Single Life Annuity with 120-Month Guarantee, a reduced monthly
benefit shall be paid to the Participant for his lifetime, with a guarantee of 120 monthly payments. If the Participant dies after the Annuity Starting Date but before receiving 120 monthly payments, the monthly payments shall be paid to the
Participant’s Beneficiary, until the Participant and his Beneficiary have received a total of 120 monthly payments. 
  

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 (iv) Single Life Only Annuity. Under the Single Life Only Annuity, a monthly
benefit shall be paid to the Participant for his lifetime. The last payment of the Single Life Only Annuity shall be made as of the first day of the month in which the death of the Participant occurs. 
 (v) Grandfathered Overnite Participant Optional Forms. In addition to the Optional Forms of Benefit available under Sections
5.4(d)(i) through (iv), a Grandfathered Overnite Participant whose Annuity Starting Date is prior to his Normal Retirement Date may elect, as an Optional Form of Benefit, a “social security leveling income option”, which shall be a benefit
for the Participant’s lifetime providing for the adjustment of the Participant’s Normal Retirement Benefit to produce, so far as practicable, a level combined pension from this Plan and the Participant’s Social Security benefit (both
before and after such Social Security benefit is payable). 
 (vi) Grandfathered Motor Cargo Participant Optional
Forms. In addition to the Optional Forms of Benefit available under Section 5.4(d)(i) through (iv), a Grandfathered Motor Cargo Participant may elect, as an Optional Form of Benefit, a Five Year Certain and Life Annuity for his entire
Accrued Benefit. 
 (e) Cash-Out of Benefits. Notwithstanding any other provisions of this Plan, if following a Participant’s
termination of employment the Present Value of his vested Retirement Benefit does not exceed $3,500, for Participants who terminate employment with all Employer Companies and Related Employers before January 1, 2000, or $5,000, for Participants
who terminate employment with all Employer Companies and Related Employers on or after January 1, 2000, the Committee shall, in lieu of such benefit, pay to the Participant, without his consent, such Present Value in a lump sum. Provided
however, that if the Present Value of such benefit is $1,000 or greater, no such payment shall be made after March 1, 2005. In the case of a Participant who terminates employment prior to earning a vested benefit hereunder, said benefit shall
be deemed to be distributed immediately following such termination of employment. In the event such nonvested Participant is reemployed, his Benefit Service shall be restored in accordance with the rules set forth in the definition of such term.

 (f) Repayment of Cash-Out. After a distribution described in Section 5.4(e), the Participant’s service with respect to
which the distribution was made shall be disregarded for purposes of the Plan unless, following reemployment, the Participant repays the amount of the distribution to the Trustee together with interest at the rate of 120 percent of the Federal
mid-term rate, as in effect under Code Section 1274 for the first month of the Plan Year in which the restoration occurs or otherwise in accordance with Code Section 411(a)(7). Such repayment must be made within five years of the
Participant’s resumption of employment. 
 (g) Special Transitional Rules for Certain Participants in Pay Status. In the case of
a Participant with at least one Hour of Service as an Employee on or after January 1, 1992 and whose Annuity Starting Date is in 1992, the monthly amount of the Participant’s Normal or Early Retirement Benefit, or Deferred Vested Benefit
shall, if calculated in accordance with the 

  

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terms of this Plan prior to the adoption of Amendment No. 15, be adjusted, retroactive to the Participant’s Annuity Stating Date, to reflect his
greater benefit, if any, determined in accordance with the terms of this Plan as amended by Amendment No. 15. Such increase shall be calculated based on the same payment form as selected by the Participant. 
 SECTION 5.5. Disability Retirement Benefit. Subject to the provisions of Section 5.9 and of Appendix J and K, the amount of monthly benefit
to which a Participant is entitled under this Section 5.5 because of a Disability is: 
 (a) With reference to a Disability occurring
prior to January 1, 1978, the amount determined by multiplying $8.00 by the number of years of Benefit Service, to a maximum of 25, completed by the Participant prior to his Disability, or 
 (b) With reference to a Disability occurring on or after January 1, 1978, the amount determined by multiplying $9.60 by the number of years of
Benefit Service to a maximum of 25 (30, in case of Disability occurring on or after January 1, 1992), completed by the Participant prior to his Disability. 
 The benefit payable under this Section 5.5 shall be paid to the disabled Participant so long as he remains Disabled. 
 SECTION 5.6. Preretirement Survivor Annuity. 
 (a) If a vested Participant dies on or after
January 1, 2006 and prior to his Annuity Starting Date, his Spouse or Domestic Partner will be entitled to receive a Preretirement Survivor Annuity commencing: 
 (i) if the Participant dies after attaining his Earliest Commencement Age, as of the first day of the month coincident with or next
following the date of the Participant’s death; and 
 (ii) if the Participant dies on or before attaining his Earliest
Commencement Age, as of the first day of the month coincident with or next following the date the Participant would have attained his Earliest Commencement Age. 
 (b) The Preretirement Survivor Annuity to which the Participant’s surviving Spouse or Domestic Partner shall be entitled hereunder shall be equal to, for a surviving Spouse, the amount which would have been
payable to the Participant’s Spouse under the Qualified Joint and Survivor Annuity or, for a Domestic Partner, the Joint and 50% Survivor Annuity: 
 (i) if the Participant dies after he attains his Earliest Commencement Age, had the Participant retired and commenced receiving benefits on the day immediately preceding his death; 
 (ii) if the Participant dies on or before attaining his Earliest Commencement Age, had the Participant: 
 (A) separated from service on the date of his death (or his actual date of separation, if earlier); 
  

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 (B) survived to his Earliest Commencement Age; 
 (C) retired with an immediate Qualified Joint and Survivor Annuity for the Spouse or, in the case of a Participant with a Domestic
Partner, the Joint and 50% Survivor Annuity at his Earliest Commencement Age; and 
 (D) died on the day after he would have
attained his Earliest Commencement Age; and 
 (c) Notwithstanding the foregoing, if a Participant (other than a UPS Freight Participant)
with at least one Hour of Service as an Employee on or after January 1, 1992 dies before attaining his Early Retirement Date while actively employed by an Employer Company after having earned at least 25 Years of Service, the Qualified Joint
and Survivor Annuity or the Joint and 50% Survivor Annuity used as the basis for calculating the amount of the Preretirement Survivor Annuity shall be determined by using the early commencement reduction factors that would have been applicable to
such Participant with respect to Early Retirement Benefits had he survived to his Early Retirement Date. 
 (d) The Participant’s
surviving Spouse or Domestic Partner may elect to defer commencement of the Preretirement Survivor Annuity, but not later than the date the Participant would have attained his Normal Retirement Date. 
 (e) In lieu of the Preretirement Survivor Annuity, before the first payment with respect to such benefit, the Committee shall pay to the surviving
Spouse, without his consent, the Present Value of the benefit if such Present Value is less than $1,000 for payments made after March 1, 2005. For payments made before January 1, 1985, such Present Value does not exceed, $1,750, for
payments made after December 31, 1984 but before January 1, 2000, $3,500, and for payments after December 31, 1999, $5,000. 
 SECTION 5.7. Benefit Payments Under Other Plans and Programs. The benefits otherwise provided in Sections 5.2 through 5.6 of this Plan shall be reduced by the amount of any benefits payable to or on behalf of a Participant, under any
other non-government pension or retirement plan or program to which contributions have been made by an Employer Company on behalf of such person or under which service is counted in calculating benefits under this Plan, except any cash or deferred
plan described in Section 401(k) of the Code or the UPS Qualified Stock Ownership Plan, to the extent that such benefits payable under such other plan or program are based on a period of time included in the calculation of Benefit Service
within the meaning of Section 1.1(f), for purposes of this Plan and are not attributable to contributions made to such other plan or program by the Participant. 
 If a reduction in benefits is also called for in another plan or plans sponsored and maintained by the Employer Company by reason of the benefits payable to a Participant under this Plan, the reduction in benefits
shall be made only in the benefits payable under the plan in which the Participant last participated, and if he participated in more than one such other plan, then the reduction shall be made in the reverse order of participation with no reduction
in the benefits payable under the plan in which the Participant first participated. 
  

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 If the Participant receives one form of benefit under this Plan and another form of benefit under any
such other plan, any reduction hereunder shall be based on actuarially equivalent forms of benefit. 
 SECTION 5.8. Preservation of
Benefits and Maximum Pensions. Anything to the contrary notwithstanding, a retirement benefit computed under this Article V shall be subject to the following: 
 (a) Minimum Benefit for Participation as of the Effective Date. If a Participant was included under the provisions of the Plan prior to January 1, 1976, and a benefit becomes payable under this Plan
resulting from termination of employment for any reason on or after the January 1, 1976, such benefit shall not be less than the actuarial equivalent of the benefit that would have been payable had the provisions of the Plan in effect
immediately prior to January 1, 1976 remained in effect until the Participant’s termination of employment, considering the years of continuous employment accumulated at termination of employment and the benefits in effect immediately prior
to January 1, 1976. 
 (b) Maximum Benefits. 
 (i) General Limitation. For limitation years ending after December 31, 2002, the maximum annual benefit payable under this
Plan shall not exceed the lesser of: (A) $160,000 as adjusted, effective January 1 of each year, under Section 415(d) of the Code in such manner as the Secretary shall prescribe (the “dollar limitation”) or (B) 100% of
the Participant’s average compensation (as defined in Treasury Regulation Section 1.415-2(d)) and reduced, if necessary, to reflect the applicable annual compensation limitation under Section 401(a)(17) of the Code, paid for the three
consecutive calendar years during which he was an active Participant in the Plan, and in which he received the greatest aggregate compensation (as defined above)from the Employer Company, subject to the following: 
 (A) If the benefit is payable in any form other than a straight life annuity, a Qualified Joint and Survivor Annuity, or a joint and
survivor annuity with the Spouse as the beneficiary, then the limitations of this subsection (1) shall be applied to the straight life annuity which is the actuarial equivalent of such benefit. The actuarially equivalent straight life annuity
is equal to the greater of the annuity benefit computed using the interest rate and mortality table (or other tabular factor) specified in the Plan for adjusting benefits in the same form, and the annuity benefit computed using a 5 percent interest
rate assumption and the Applicable Mortality Table. In determining the actuarially equivalent straight life annuity for a lump sum benefit, the Applicable Interest Rate will be substituted for 5 percent. No actuarial adjustment is required for the
value of a qualified joint and survivor annuity, benefits that are not directly related to retirement benefits and the value of post-retirement cost-of-living increases made in accordance with Section 415(d) of the Code and the regulations
thereunder. 
  

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 (B) (1) If the retirement benefit of the Participant commences before the age 62, such
dollar limitation shall be adjusted as described below so that it is the actuarial equivalent of an annual benefit of the dollar limitation beginning at age 62, reduced for each month by which benefits commence before the month in which the
Participant attains age 62. The retirement benefit beginning prior to age 62 shall be determined as the lesser of the actuarial equivalent retirement benefit computed using the interest rate and mortality table (or other tabular factor) equivalence
for early retirement benefits specified in the Plan, and the equivalent retirement benefit computed using a 5 percent interest rate and the Applicable Mortality Table. Any decrease in the adjusted defined benefit dollar limitation determined in
accordance with this provision (B)(1) shall not reflect any mortality decrement to the extent that benefits will not be forfeited upon the death of the Participant. If any benefits are forfeited upon death, the full mortality decrement is taken into
account. 
 (2) If the retirement benefit of a Participant commences after age 65, the defined benefit dollar limitation
shall be adjusted so that it is the actuarial equivalent of a retirement benefit of such dollar limitation beginning at age 65. The actuarial equivalent retirement benefit beginning after age 65 shall be determined as the lesser of the actuarial
equivalent retirement benefit computed using the interest rate and mortality table (or other tabular factor) specified in the Plan for purposes of determining actuarial equivalence for delayed retirement benefits, and the equivalent retirement
benefit computed using a 5 percent interest rate assumption and the Applicable Mortality Table. 
 (C) Subject to limitations
imposed elsewhere in this Plan, an annual benefit of $10,000 or less may be paid regardless of the limitations set forth in this subsection (b)(i) if the benefit paid the Participant from all defined benefit plans of the Employer Company does
not exceed $10,000 for the Plan Year or any prior Plan Year, and the Employer Company has not at any time maintained a defined contribution plan in which the Participant participated. 
 (D) If a Participant has less than 10 Years of service with the Employer Company at the time the Participant begins to receive retirement
benefits under the Plan, the average compensation limitation, as well as the $10,000 benefit exception described in subparagraph (b)(i)(C) above, shall be reduced by multiplying such limitation by a fraction, the numerator of which is the number of
Years of Service with the Employer Company as of and including the current limitation year, and the denominator of which is 10. In the case of the dollar limitation where the Participant has less than 10 years of participation in the Plan, such
limitation shall be reduced by a fraction, the numerator of which is the number of years of participation in the Plan as of and including the current limitation year, and the denominator of which is 10. 
 (ii) Limitation Adjustment. The rate of a Participant’s benefit accrual will be automatically frozen or reduced to a level
necessary to prevent the limitations of this subsection (b) from being exceeded; provided, that if the limitations of this subsection (b) 

  

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will be exceeded only as a result of considering another defined benefit plan sponsored by the Employer Company and this Plan as one plan, the
Participant’s benefit accrual under this plan will not be frozen or reduced to a level necessary to prevent the limitations of this subsection (b) from being exceeded in the event that such other defined benefit plan provides for the
freezing or reduction of benefit accruals. 
 (iii) Single Plan Rule. For purposes of this subsection (b), all
defined benefit plans of the Employer Company (whether or not terminated) shall be considered as one defined benefit plan. 
 (iv) Automatic Adjustment. The limitations imposed by this subsection (b) shall be adjusted automatically when permitted or required by law. With respect to increases in these limitations which are permitted by law to reflect
the impact of inflation, in the event that a Participant’s Normal Retirement Benefit or Early Retirement Benefit as of his Annuity Starting Date, must be reduced by reason of the foregoing limitations in effect at such time, the following rules
shall apply: 
 (A) A Participant’s Normal Retirement Benefit or Early Retirement Benefit, taking into account the
Compensation limitation under Section 401(a)(17) of the Code (the “Compensation limitation”), and applying the applicable limitation or limitations of Section 5.8(b)(i) or Section 5.7(b)(i)(B)(1) (as applicable, the
“415 limitations”) shall, following the Annuity Starting Date, be adjusted upward as the result of any subsequent increase in the 415 limitations, provided however, that in no event shall such benefit exceed the Participant’s Normal
Retirement Benefit or Early Retirement Benefit, as the case may be, including the Compensation limitation. 
 (B)
Notwithstanding the foregoing, in no event shall a Participant’s Normal Retirement Benefit or Early Retirement Benefit, for any particular year, exceed the 415 limitation for such year (based on the Participant’s age on his Annuity
Starting Date), and no increase as described in subparagraph (A) above shall be retroactive for any preceding year. 
 (C) A Participant’s Normal Retirement Benefit or Early Retirement benefit shall not be adjusted upward as the result of any change to the Compensation limitation following the Annuity Starting Date. 
 (v) Limitation Year. For purposes of this subsection (b), the limitation year is the calendar year. 
 (vi) Employer Company. Solely for purposes of this Section 5.8(b), “Employer Company” means the Employer Company and
each entity who would be determined to be a member of the Employer Company’s controlled group under Section 414(b) or (c) of the Code if the standard of “more than fifty percent” was substituted for the standard of “at
least eighty percent. 
  

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 (vii) Transitional Rules. 
 (A) The limitation under Section 5.8(b)(i) for an Employee who was a Participant in this Plan prior to January 1, 1983, shall be
the greater of (1) the limitation contained in such Section or (2) the Participant’s accrued benefit, expressed as an annual benefit, as of December 31, 1982. For purposes of this paragraph (A), neither changes in the terms and
conditions of this Plan nor cost of living adjustments occurring after July 1, 1982, shall be taken into account. 
 (B)
The numerator of the defined contribution fraction shall, if necessary, be adjusted as permitted by Treasury Regulations so that the sum of the defined benefit fraction and the defined contribution fraction does not exceed 1.0 for the last
limitation year beginning before January 1, 1983. 
 (c) Incorporation by Reference. Notwithstanding anything to the contrary in
this Section 5.8, the limitations on the maximum benefits payable from this Plan shall be in accordance with Code Section 415 and the regulations thereunder, which are incorporated into this Plan by reference. 
 SECTION 5.9. Limitations Regarding Time of Payment of Benefits. 
 (a) General Limitation. All payments authorized under this Plan shall commence no later than the 60th day after the close of the Plan Year in which the Participant terminates his service with the Employer
Company, provided proper application under Section 4.1 is filed. 
 (b) Mandatory Limitation. 
 (i) Commencement of payments. 
 (A) Notwithstanding subsection (a), the entire interest of a Participant shall be, or shall begin to be, distributed no later than April 1 of the calendar year following the calendar year in which he attains
age 70 1/2; provided however, that the interest of a Participant (other than an individual who is or was a Five-percent Owner, in any Plan Year ending in the year the individual attained age 66 1/2 or any succeeding Plan Year) who attained age 70
1/2 before January 1, 1988, shall not be required to begin to be distributed prior to April 1 of the calendar year following the calendar year in which he retires or otherwise terminates employment. A Participant who receives a
distribution or distributions in accordance with the preceding sentence while still employed shall continue to earn years of Benefit Service (up to the maximum under the applicable benefit formula), and the amount of his benefit shall be adjusted
annually, or otherwise in accordance with Treasury regulations. 
 (B) In the case of an Employee who is a Five-percent Owner
of the Employer Company in the calendar year in which such Employee attains age 70-1/2, his entire interest shall be, or begin to be, distributed not later than the April 1 following such calendar year. 
  

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 (C) No distribution pursuant to the Plan shall be inconsistent with the requirements of
Section 401(a)(9) of the Code and the regulations thereunder. 
 (D) If a Participant continues to work past the date
benefits are required to commence under this Section 5.9, the benefit shall be adjusted annually on or before April 1 following the date benefits commenced to reflect the additional benefits, if any, accrued in the immediately preceding
Plan Year. 
 (ii) Payments after death of Participant or Spouse. If distribution of a Participant’s interest has
begun as provided in paragraph (i), and the Participant dies before his entire interest has been distributed to him, then the remaining portion of such interest shall be distributed at least as rapidly as under the method of periodic distribution
being used on the date of his death. If a Participant dies before distribution of his benefit has begun, then the entire interest of the Participant shall be distributed within five years after the death of the Participant unless one of the
following exceptions applies: 
 (A) If any portion of the Participant’s interest is payable to a designated beneficiary
for life, or over a period not extending beyond such beneficiary’s life expectancy, and such distributions begin not later than one year after the Participant’s death or such longer period as may be prescribed by Treasury regulations,
distribution shall be deemed to have occurred on the date periodic distributions began and the five year limitation shall not apply to such portion. 
 (B) If the designated beneficiary is the Participant’s surviving Spouse, distributions shall begin not later than the date on which the Participant would have attained age 70 1/2; but if the surviving Spouse dies
before distributions to such Spouse begin, the above distribution rules shall be applied as though the surviving Spouse were the Participant. 
 (iii) Transitional rule. Any designation by a Participant of a method of distribution permitted by this Plan which does not meet the requirements of this subsection (b) will be honored, if such
designation was submitted to the Committee before January 1, 1984. 
 (c) No Distribution to Five-percent Owner Before Age
59-1/2. Notwithstanding any other provision of this Plan, no distribution shall be made to an Employee who is or has been a Five-percent Owner, before such Employee attains age 59-1/2, of any amount attributable to a contribution made on behalf
of such Employee while he was a Five-percent Owner, except in the case of his death or disability. 
 (d) Five-percent Owner. For
purposes of this Section 5.9, the term “Five-percent Owner” means a person who owns more than five percent of the outstanding stock of the Employer Company or stock possessing more than five percent of the total combined
voting power of all stock of the Employer Company. For purposes of determining ownership in the Employer Company: (i) the constructive ownership rules of Section 318 of the Code, as modified by substituting “5 percent” for
“50 percent” in subsection (a)(2)(C) thereof, shall apply, but (ii) the rules of subsections (b), (c), and (m) of Section 414 of the Code shall not apply. 
  

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 SECTION 5.10. Designation of Beneficiary. (a) Each Participant may designate beneficiaries
(including a primary beneficiary and one or more contingent beneficiaries in the event of the death of the primary beneficiary) to receive such benefits as may be payable under the provisions of this Plan. The designation of any beneficiary may be
changed from time to time by the Participant filing a new designation with the Committee, to be effective upon receipt by the Committee, provided it is received by the Committee prior to the Participant’s death. The consent of any previously
designated beneficiary to such change shall not be required to effect the change. No designation of a beneficiary shall be effective to the extent that honoring such designation would conflict with the rights of the Participant’s Spouse under
Section 5.4, and no such designation shall be effective to the extent that, in conjunction with such spousal rights, it would require duplication of benefit payments. 
 (b) In the event that a Participant fails to designate a beneficiary or if a designated beneficiary does not survive the Participant or is not specified
elsewhere in this Plan, payment will be made to the Spouse of the deceased Participant, if any, but if none survives the Participant, to his surviving children. If no children survive the Participant, payment will be made to the Participant’s
estate. If a beneficiary who has begun to receive payments pursuant to Article V dies before all payments are made, the balance due, if any, shall be paid in a lump sum or in installments, as the Committee shall direct, to the estate of the
deceased beneficiary. 
 SECTION 5.11. Final Payment to Participant or Beneficiary. Any final payment or distribution to any
Participant or a legal representative or Beneficiary of a Participant, or any one claiming under them, in accordance with this Plan, shall be in full satisfaction of all claims against the Trust Fund, the Trustee, the Committee, any Employer
Company, and all representatives, officers, employees and agents thereof. The person receiving the payment or distribution may be required to execute a receipt and release of all claims under the Plan upon a final payment or distribution or a
receipt and release to the extent of any partial payment or distribution. The form and content of such receipt or release shall be determined by the Committee. 
 SECTION 5.12. Suspension of Benefits. 
 (a) If a Participant, other than a Grandfathered Motor Cargo
Participant, entitled to receive benefits (which shall be deemed to include the actual receipt of such benefits) should (i) return to employment or (ii) remain in employment after attaining Normal Retirement Age, the payment of benefits to
said Participant shall be suspended for the period in which the Participant remains employed but not beyond the required beginning date set forth in Section 5.9(b). Benefit payments will be resumed no later than the first day of the third
calendar month after the month in which the Participant ceases to be employed, provided the Participant has informed the Plan Administrator that he has ceased such employment. 
 (b) For purposes of this Section 5.12, a period of employment as to which benefits shall be suspended means any calendar month or a four or five
week period ending in a calendar month, if the Participant completes at least forty hours of service (as defined in 29 CFR §2530.200b-2(a)(1) and (2)) with the Employer Company or a Related Employer in such month or payroll period.

  

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 (c) Any Participant coming under this provision will be notified by first class mail or personal delivery
within the first calendar month or payroll period in which the Plan withholds the payment of Retirement Benefits. 
 (d) Any Participant may
request a determination of whether or contest a determination that specific contemplated employment will be considered employment for purposes of this Section 5.12. Request for status determinations may be submitted in accordance with the claim
procedures set forth in Section 9.4. 
 (e) When the Participant is entitled to recommence benefits, his benefits shall be recalculated
on the basis of Compensation earned and years of Benefit Service credited during such period of reemployment or continued employment, and no actuarial or other adjustment shall be made to such Participant’s benefit so as to reflect payments so
suspended. In addition, such resumed payment shall be offset by (i) any benefit paid with respect to a month in which the Participant was in service described in Section 5.12(b) where the amount so paid has not been returned or repaid to
the Plan by such Participant and (ii) the Actuarial Equivalent of any payments made to the Participant before his Normal Retirement Date. A Participant whose benefits have been suspended during a period of reemployment or continued employment
shall be entitled to elect the form of payment for his entire benefit, including amounts accrued both before and during reemployment, in accordance with Section 5.4. 
 SECTION 5.13. Withholding of Income Tax. 
 (a) Notification of Withholding of Federal Income
Tax. All Participants, Spouses, Domestic Partners and Beneficiaries entitled to receive benefits under the Plan (each, a “payee”) shall be notified of the Plan’s obligation to withhold federal income tax from any benefits payable
pursuant to the terms of the Plan. Such notice shall be in writing, be given at the time set forth in subsection (b) and contain the information set forth in subsection (c) of this Section. 
 (b) Time of Notice. The notice described in subsection (a) shall be provided not earlier than six months before such payment is to be
made and not later than the time the payee is furnished with his claim for benefits application. 
 (c) Content of the Notice. The
notice required by subsection (a) shall, at a minimum: 
 (i) with respect to any distribution which is an eligible
rollover distribution within the meaning of Code Section 3405(c)(3) (other than an eligible rollover distribution of less than $200 which is exempt from withholding under regulations prescribed by the Secretary of the Treasury), advise the
payee that there shall be withheld from such distribution an amount equal to 20 percent thereof (or such other amount as may from time to time be prescribed by the Code, or the Secretary of the Treasury or his delegate), unless the payee
directs the Committee to transfer such distribution as a direct rollover to an eligible retirement plan, within the meaning of Section 5.14 hereof, in accordance with such procedures as the Committee may prescribe (a “transfer
direction”), 
  

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 (ii) with respect to any distribution which is not an eligible rollover distribution
within the meaning of Code Section 3405(c)(3): 
 (A) advise the payee of his right to elect not to have withholding
apply to any payment or distribution and explain the manner in which such election may be made, and include or indicate the source of any forms necessary to make the election; 
 (B) advise the payee of his right to revoke such an election at any time; 
 (C) advise the payee that any election remains effective until revoked; 
 (D) advise the payee that penalties may be incurred under the estimated tax payment rules if the payee’s payments of estimated tax
are not adequate and sufficient tax is not withheld from payments under this Plan; and 
 (E) advise the payee that the
election not to have federal income tax withheld from benefits is prospective only and that any election made after a payment or distribution to the payee is not an election with respect to such payment or distribution. 
 (d) Effective Date of Election. Any transfer direction, election or revocation of any election by a payee shall become effective immediately upon
receipt by the Committee of the transfer direction, election or revocation. Thereafter, the Committee shall, unless otherwise provided by applicable law, regulation or other guidance by the Secretary of the Treasury or his delegate, instruct the
Trustee to withhold federal income tax in accordance or consistent with the instructions filed by the payee. 
 (e) Failure to Make
Election. 
 (i) In the case of an eligible rollover distribution, if the payee fails to provide the Committee with a
transfer direction, the Committee shall instruct the Trustee to withhold an amount equal to 20% of the amount of the distribution (or such other amount as may be from time to time prescribed by the Code, or the Secretary of the Treasurer or his
delegate). 
 (ii) In the case of a distribution which is not an eligible rollover distribution, if the payee fails to provide
the Committee with a withholding certificate, the Committee shall instruct the Trustee to withhold, in the case of a periodic distribution, the amount which would be required to be withheld from such payment if such payment were a payment of wages
by an employer to an employee for the appropriate payroll period, determined as if the payee were a married person claiming three withholding allowances. In the case of a nonperiodic distribution, 10% of the amount of the distribution shall be
withheld. 
 (f) Coordination with Internal Revenue Code and Regulations. Notwithstanding the foregoing, the Committee shall discharge
its withholding and notice obligations in accordance with the Code and regulations and such other guidance with respect thereto as may be promulgated from time to time by the Secretary of the Treasury or his delegate. 
  

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 SECTION 5.14. Direct Rollover. 
 (a) With respect to any distribution described in this Article V which constitutes an eligible rollover distribution within the meaning of Code
Section 401(a)(31)(C), the distributee thereof shall, in accordance with procedures established by the Committee, be afforded the opportunity to direct that such distribution be transferred directly to the trustee of an eligible retirement plan
(a “direct rollover”). For purposes of the foregoing sentence, an “eligible retirement plan” is (1) a qualified trust within the meaning of Code Section 402 which is a defined contribution plan the terms of which permit
the acceptance of rollover distributions, (2) an individual retirement account or annuity within the meaning of Code Section 408 (other than an endowment contract), (3) an annuity plan within the meaning of Code Section 403(a),
which is specified by the distributee in such form and at such time as the Committee may prescribe, and effective for distributions made after December 31, 2001, (4) an annuity contract described in Code Section 403(b) and (5) an
eligible plan under Code Section 457(b) which is maintained by a state, political subdivision of a state, or any agency instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts
transferred into such plan from this Plan. For distributions made after December 31, 2001, the definition of “eligible retirement plan” shall also apply in the case of a distribution to a surviving Spouse, or to a Spouse or former
Spouse who is the alternate payee under a qualified domestic relation order, as defined in Code Section 414(p). 
 (b) Notwithstanding
the foregoing, if the distributee elects to have his eligible rollover distribution paid in part to him, and paid in part as a direct rollover: 
 (i) The direct rollover must be in an amount of $500 or more. 
 (ii) A direct rollover to two
or more eligible retirement plans shall not be permitted. 
 (c) The Committee shall, within a reasonable period of time prior to making an
eligible rollover distribution from this Plan, provide a written explanation to the distributee of the direct rollover option described above, as well as the provisions under which such distribution will not be subject to tax if transferred to an
eligible retirement plan within 60 days after the date on which the distributee received the distribution. 
 SECTION 5.15. Recovery of
Overpayments. No person is entitled to any benefit under this Plan except and to the extent expressly provided under this Plan. The fact that payments have been made from this Plan in connection with any claim for benefits under this Plan does
not (a) establish the validity of the claim, (b) provide any right to have such benefits continue for any period of time, or (c) prevent the Plan from recovering the benefits paid to the extent that the Committee determines that there
was no right to payment of the benefits under this Plan or that there was a mistake in the calculation of benefits under this Plan. Thus, if a benefit is paid under this Plan and it is thereafter determined by the Committee that such benefit should
not have been paid, or that such benefit was overpaid (whether or not attributable to an error by the Participant, the Committee or any other person), then the Committee may take such action as it deems necessary or appropriate to remedy such
situation, including, without limitation, deducting the amount of any overpayment theretofore made to or on behalf of the Participant from any succeeding payments to or on behalf of the Participant or instituting legal action to recover such
overpayments. The period over which the Committee may recover any benefit overpayment shall not be limited by the period during which the error occurred. 
  

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 ARTICLE VI 
 VESTING 
 SECTION 6.1. Vesting. Each Participant shall have a 100% vested interest in his
Accrued Benefit, after completing at least five Years of Service, but except as provided in the applicable Appendix or in Article XI, Top-Heavy Provisions, shall have no vested interest prior thereto. In addition, the benefit to which a
Participant is entitled shall be fully vested in such Participant upon his attainment of his Normal Retirement Date. 
 Any Participant in
the Plan on the date of adoption of any amendment to the vesting schedule may, within an election period which begins on the date of adoption of such amendment to the vesting schedule and ends on the sixtieth day after the latest of: (i) the
date the amendment is adopted; (ii) the date the amendment becomes effective; or (iii) the date the Participant is given written notice of the amendment by the Committee, elect to have his vested percentage determined under his
vesting schedule as in effect immediately prior to the effective date of amendment, provided he has completed three Years of Service prior to the end of the election period. Any election made will be irrevocable. Further no Participant shall have
his vested percentage decreased by any change in the vesting schedule. 
 SECTION 6.2. Breaks in Service for Vesting Purposes. If a
Participant with no vested interest, as determined under Section 6.1, incurs one or more consecutive Breaks in Service: 
 (a) Prior to
2000, Years of Service before such Break in Service shall not be taken into account for purposes of Section 6.1 until the Participant completes one Year of Service after the Break in Service; and 
 (b) Years of Service prior to the Break in Service shall not be taken into account for purposes of Section 6.1 if the number of consecutive Breaks
in Service equals or exceeds the greater of (i) the aggregate number of the Participant’s Years of Service (excluding Years of Service not required to be taken into account by reason of any prior Breaks in Service), or (ii) with
respect to a Break in Service incurred by a person who is an Employee on or after January 1, 1985, regardless of when the Break in Service occurred, six. 
 SECTION 6.3. Forfeitures. All forfeitures of nonvested interests in the Plan occurring during the Plan Year shall be applied to reduce future contributions and shall not be used or applied to increase the
benefits to which any Participant would be entitled hereunder. 
  

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 ARTICLE VII 
 AMENDMENT, MODIFICATION AND TERMINATION; MERGER 
 SECTION 7.1. Right to Amend or Terminate.
The Employer Companies hope, and expect, to continue this Plan and the funding of benefits hereunder indefinitely; but such continuance is not assumed as a contractual obligation and, in order to protect both Participants and the Employer Companies
against unforeseen contingencies, the Employer Companies expressly reserve the right, by action of their boards of directors, to discontinue contributions to this Plan or to terminate this Plan at any time with respect to its Participants, without
the consent of any party. The right to amend this Plan in any respect or particular is vested exclusively in the Board of Directors which right is not conditional on the consent or approval of any other Employer Company. Additionally, any amendment
or modification may be made retroactive, if necessary or appropriate to qualify or maintain the Plan as a qualified Plan within the meaning of Section 401(a) of the Code, and to qualify or maintain the Trust as tax exempt under
Section 501(a) of the Code, and the regulations issued thereunder. Notice of any amendment or modification of the Plan may be given by posting, by mail, or by such other means as may be acceptable under ERISA. 
 SECTION 7.2. Withdrawal of Employer Company. Any Employer Company, by action of its board of directors, may withdraw from the Plan at any time.

 SECTION 7.3. Liquidation of Trust Fund. Upon termination or partial termination of the Plan, each affected Participant’s
benefits, determined prior to the date of termination, shall become fully vested and non-forfeitable, to the extent funded and to the extent such benefit is not restricted pursuant to the provisions of Section 7.9 herein. The assets of the
Trust Fund, shall be allocated among Participants and beneficiaries, after payment of administration expenses of the Plan, in the following order of priority as modified by the provisions of IRS regulations 1.414(l)-1(f) or (h) if a special
schedule of benefits (as defined in the regulations) is in effect as a result of a plan merger within the five year period prior to the date of termination: 
 (a) Benefits Payable Three Years Prior to Termination. First, to provide benefits that become payable three or more years before the date of termination of the Plan, or that would have become payable had the
Participant retired immediately prior to the beginning of such three year period, provided that 
 (i) the benefit payable to
a Participant or Beneficiary (or that could have been payable) shall be based on the provisions of the Plan in effect during the five year period prior to the date of termination of the Plan; and further provided that, 
 (ii) the lowest benefit payable during such three year period shall be considered the benefit payable for purposes of this category (a).

 (b) Other Benefits Eligible for Termination Insurance. Second, to the extent that a benefit has not been provided in category (a),
the remaining assets shall be allocated to provide any benefit provided under the Plan for Participants and beneficiaries to the extent guaranteed by the Pension Benefit Guaranty Corporation pursuant to Title IV of ERISA. 
  

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 (c) Other Benefits. To the extent that a benefit under the Plan has not been provided in the
foregoing categories, the assets of the Plan shall be allocated to provide all other non-forfeitable benefits under the Plan and, finally, to provide all other benefits under the Plan. 
 If the assets of the Trust Fund applicable to any of the above categories are insufficient to provide full benefits for all persons in such group, the
benefits otherwise payable to such persons shall be allocated pro rata on the basis of the present value of benefits as of the termination date. The Actuary shall calculate the allocation of the assets of the Trust Fund in accordance with the above
priority categories, and certify his calculations to the Committee. Each of the above classes shall be divided into subclasses, giving first preference within the class to those Participants over 65 and those beneficiaries receiving benefits; second
preference to Participants over 60 years of age; third preference to Participants over 55 years of age; fourth preference to Participants under 55 years of age having a deferred vested benefit; and fifth preference to all others. The Committee may
establish additional subclasses within the classes set forth in subsection (a), (b), and (c). 
 SECTION 7.4. Finality of
Payment. Prior to making any distribution under the terms of Section 7.3, the Committee shall satisfy itself that this procedure complies with applicable law and shall obtain such waivers and authorizations from Participants and
beneficiaries as it deems advisable. 
 SECTION 7.5. Non-diversion of Assets. Except as provided in Section 3.5 hereof, regarding
return of contributions no part of the assets of the Trust, by reason of any amendment or otherwise, shall at any time be used for, or diverted to, purposes other than for the exclusive benefit of Participants, former Participants, or their
beneficiaries, and for the payment of administrative expenses under the Plan, or as will cause, or permit the assets of the Trust to revert to, or become the property of an Employer Company at any time prior to the satisfaction of all liabilities
under the Plan. When all such liabilities have been satisfied, any assets remaining will revert to the Employer Companies. 
 SECTION 7.6.
Committee Functions during Termination. If the Plan is terminated, the Committee in office at the time of such termination shall continue to act with its full powers hereunder until the completion of the allocation and distribution of the
assets of the Trust Fund as in this Article VII provided; and a majority of the members of the Committee then in office shall have the power to fill any vacancies occurring in the Committee after such termination by resignation, death, or
otherwise. In the event the Committee within a reasonable time after such termination shall not have provided for such allocation and distribution, the Board of Directors shall succeed to all powers and duties of the Committee and shall provide for
such allocation and distribution of the assets of the Trust Fund. 
 SECTION 7.7. Notice of Termination. Notice of termination of the
Plan, in whole or in part, shall be deemed adequately given if an Employer Company of the Committee mails written notice of the same to the latest address on file of each Participant or beneficiary who is affected by such termination; or by such
other means as may be acceptable under ERISA. 
 SECTION 7.8. Merger and Consolidation of Plan, Transfer of Assets. In the case of any
merger or consolidation with, or transfer of assets and liabilities to, any other plan, provisions 

  

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shall be made so that each Participant in the Plan on the date thereof (if the Plan then terminated) would receive a benefit immediately after the merger,
consolidation or transfer which is equal to or greater than the benefit he would have been entitled to receive immediately prior to the merger, consolidation or transfer if the Plan had been terminated. 
 SECTION 7.9. Discontinuance of Plan Within Ten Years of Amendment. In the event that the Plan is discontinued by any Employer Company within ten
(10) years after any amendment to the Plan which increases the benefits payable under the Plan, or if the full current costs (including current service contributions and interest on any unfunded liability for the initial cost of retroactive
increases in benefits not covered by current service contributions) are not met by such Employer Company during such ten (10) year period, the contributions which may be used to provide benefits for any one of the twenty-five (25) most
highly compensated employees on the effective date of such amendment, whose anticipated retirement annuity based upon the rate of compensation as of that date would be more than $1,500 per year, until such full current costs are funded for the first
time, shall not exceed the greatest of: 
 (a) The total contributions which would have been applied to provide a retirement annuity for any
such employee if the Plan prior to such amendment had continued without change; 
 (b) $20,000; or 
 (c) The amount which would have been provided by contributions under the Plan prior to such amendment if the Plan had been terminated the day before the
effective date of such amendment, plus an amount computed by multiplying the number of years during which current costs beginning with the effective date of such amendment are met by (i) 20% of any such employee’s annual compensation or
(ii) $10,000, whichever is less. 
 Any excess reserves resulting from the application of the foregoing provisions of this Section shall
be used and applied toward the funding of the benefits due to other Participants in the Plan who are employees of such Employer Company, in accordance with the provisions of the Plan. 
 If the Plan is in full force and effect and the full current costs have been met, the foregoing conditions shall not restrict the current payment of full benefits called for by the Plan to any Participant. The
limitations of this Section shall be inapplicable to the extent the Commissioner of Internal Revenue or his duly authorized representative may later rule that the limitations are no longer necessary for the Plan to meet the requirements for
qualifications under the Internal Revenue Code. 
 If this Plan is not terminated within the period specified above, the benefits, if any,
which have been withheld from a Participant in accordance with this Section shall be turned over to the Participant or his representative at the end of said period or as soon thereafter as the full current costs of the Plan attributable to the said
period have been met for the first time. 
 If this Plan is terminated within any of the said periods or thereafter, but before the full
current costs of the Plan attributable to any of the said periods have been met for the first time, then any benefits which have been withheld from a Participant in accordance with this Section shall, upon termination of this Plan, be
distributed as provided in Section 7.3, except that no part of such funds shall be distributed or used to fund benefits for any Participant who is affected by the limitations of this Article. 
  

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 ARTICLE VIII 
 INVESTMENTS 
 SECTION 8.1. Direction of Investments. The Committee shall, except to the extent
it has expressly delegated such authority to Trustees, or an investment manager, have full and exclusive power and authority, to direct the Trustees as to the investment of the assets of the Trust, and the Trustees shall invest, reinvest, buy, sell,
hypothecate or otherwise deal with the assets of the Trust Fund in accordance with the Committee’s directions. Such directions shall be certified in writing by two members of the Committee. Investments shall not be restricted to investments now
or hereafter legal for trust funds under the laws of the States of New York, New Jersey, Connecticut or any other jurisdiction. The Committee may, to the extent permitted by law, direct investment in: 
 (a) Qualifying employer real property (as defined in Section 407(d)(4) of ERISA); 
 (b) Qualifying employer securities (as defined in Section 407(d)(5) of ERISA); 
 (c) Other securities and other investments as directed by the Committee, including but not limited to common trust funds and collective employee benefit
trusts of the Trustee and contributions to the capital of any corporation all of whose stock is owned by the Trustee. 
 SECTION 8.2.
Seventy-Five Percent Limitation. 
 (a) In directing the investment of the assets of the Trust, the Committee may direct the
investment of up to seventy-five percent (75%) of the total assets of the Trust in the investments described in Section 8.1(a) and/or (b); except that such investments shall constitute less than such percentage of the total
assets of the Trust as provided by ERISA: 
 (i) To the extent required in order that contributions by the Employer Companies
to the Plan will be deductible under the Code, or to qualify or maintain the qualification of the Plan under the Code or to establish or maintain the exempt status of the Trust under the Code; or 
 (ii) To the extent required to maintain and preserve liquidity to permit distributions in accordance with the terms of the Plan, or to
provide suitable temporary investments for the assets of the Trust; or 
 (iii) To the extent otherwise directed by the Board
of Directors. 
 SECTION 8.3. Annual Valuation of Trust Fund. As of December 31st in each year, or as of the end of any shorter
accounting period that the Committee shall select, all of the assets in the Trust shall be valued by or under the supervision of the Committee. Such valuation shall be made in accordance with market quotations, when available, and on the basis of
such other factors as the Committee deems appropriate. 
  

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 ARTICLE IX 
 ADMINISTRATIVE COMMITTEE 
 SECTION 9.1. Establishment of Administrative Committee. The Plan
shall be operated and administered by an Administrative Committee consisting of not less than three (3) members (“named fiduciaries”), who shall be appointed by the Board of Directors. The Administrative Committee shall be the Plan
Administrator as that term is used in ERISA, agent for service of process on or with respect to the Plan and a named fiduciary with respect to the Plan. Committee members may be removed at any time by the Board of Directors and may resign at any
time, such resignation to be effective when accepted by the Board of Directors. All vacancies shall be filled by the Board of Directors. The Committee may appoint from their number such committees, which may include individuals not members of the
Committee, with such powers as they shall determine; may authorize one (1) or more of their number, or any agent, to execute or deliver any instrument, or to make any payment in their behalf; and may employ legal counsel (who shall not be an
employee of an Employer Company), actuaries, agents, and such clerical, accounting and other services as they may require in carrying out the provisions of the Plan. The Committee shall meet at least once during each calendar quarter. A majority of
the members of the Committee at the time in office shall constitute a quorum for the transaction of business. All resolutions or other action taken by the Committee at a meeting shall be by the vote of the majority of the Committee at any meeting;
or without a meeting, by instrument in writing signed by all of the members of the Committee. 
 SECTION 9.2. Delegation of Specific
Responsibilities. The members of the Committee may agree in a writing signed by each member to allocate to any one of their number or to other persons (including corporations) any of the responsibilities with which they are charged pursuant
hereto, including the appointment of an investment manager to manage the investments of the Trust Fund, provided the responsibilities and duties so delegated are definitively set forth so that the person to whom the delegation is made is clearly
aware of such duties and responsibilities. If such delegation is made to a person not a member of the Committee, that person or, in the case of a corporation, its responsible officer, shall acknowledge the acceptance and understanding of such duties
and responsibilities. 
 SECTION 9.3. Power to Establish Regulations. The Committee shall establish rules and regulations for the
administration of the Plan and the Committee. Except as otherwise herein expressly provided, the Committee shall have the exclusive right to interpret the Plan and decide any matters arising in the administration and operation of the Plan, and any
interpretations or decisions so made shall be conclusive and binding on all persons; provided, however, that all such interpretations and decisions shall be applied in a uniform manner to all Employees and Participants similarly situated.

 SECTION 9.4. Claims Procedure. 
 (a) All claims for benefits hereunder shall be directed to the Committee or to a member of the Committee designated for that purpose. Within ninety (90) days following receipt of a claim for benefits (forty-five
(45) days in the case of a claim for a Disability Retirement Benefit made on or after January 1, 2002 and before January 1, 2003), the UPS Corporate Benefits Department manager responsible for the day-to-day operation of the Plan (the
“Initial 

  

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Reviewer”) shall determine whether the claimant is entitled to benefits under the Plan, unless additional time is required for processing the claim. In
this event, the Initial Reviewer shall, within the initial ninety (90)-day period (forty-five (45)-day period in the case of a claim for a Disability Retirement Benefit made on or after January 1, 2002 and before January 1, 2003), notify
the claimant that additional time is needed, explain the reason for the extension, and indicate when a decision on the claim will be made. In the case of claims other than for a Disability Retirement Benefit made on or after January 1, 2002 and
before January 1, 2003, the initial decision must be made within 180 days of the date the claim is filed. In the case of a claim for a Disability Retirement Benefit made on or after January 1, 2002 and before January 1, 2003, the
forty-five (45)-day period for the initial decision may be extended for up to thirty (30) additional days, provided the Initial Reviewer determines that the extension is necessary due to matters beyond the control of the Plan. If prior to the
end of the initial thirty (30)-day extension, the Initial Reviewer determines that, due to matters beyond the control of the Plan, a decision cannot be made within the extension period, the period may be further extended for up to an additional
thirty (30) days, provided that the Initial Reviewer notifies the claimant prior to the expiration of the first thirty (30)-day extension of the circumstances requiring the extension and the date as of which the Plan expects to make a decision.
For a claim for a Disability Retirement Benefit made on or after January 1, 2002 and before January 1, 2003, the notice of extension for a disability retirement benefit claim must specifically explain the standards on which entitlement to
a disability retirement benefit is based, the unresolved issues that prevent a decision on the claim, and the additional information needed to resolve those issues. The claimant shall have forty-five (45) days within which to provide the
specified information unless the Initial Reviewer gives a longer period in the notification of the extension. 
 (b) A denial by the Initial
Reviewer of a claim for benefits shall be stated in writing and delivered or mailed to the claimant. Such notice shall set forth the specific reasons for the denial, written in a manner calculated to be understood by the claimant. The notice shall
include specific reference to the Plan provisions on which the denial is based and a description of any additional material or information necessary to perfect the claim, an explanation of why this material or information is necessary, and the steps
to be taken if the claimant wishes to submit his claim for review, and effective January 1, 2002, a description of the Plan’s review procedures, and the time limits applicable to such procedures, and a statement of the claimant’s
right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination upon review. 
 (c) In the case of a
claim for a Disability Retirement Benefit made on or after January 1, 2002 and before January 1, 2003, the notice of denial also shall include the following: 
 (i) If an internal rule, guideline, protocol, or other similar criterion was relied upon in making the adverse determination, the notice
of denial will include either a copy of the specific rule, guideline, protocol or other similar criterion relied upon or a statement that such rule, guideline, protocol or other similar criterion was relied upon in making the decision and that a
copy of such rule, guideline, protocol or other similar criterion will be provided to the claimant free of charge upon request. 
 (ii) If the denial is based on a medical necessity or experimental treatment or similar exclusion or limit, the notice of denial will include either an explanation of the 

  

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scientific or clinical judgment for the determination, applying the terms of the Plan to the claimant’s medical circumstances, or a statement that such
explanation will be provided free of charge upon request. 
 (d) The Committee shall afford a reasonable opportunity to any claimant whose
request for benefits has been denied for a review of the decision denying the claim. The review must be requested by written application to the Committee within sixty (60) days (one hundred eighty (180) days in the case of review of a
disability retirement benefit claim made on or after January 1, 2002 and before January 1, 2003) following receipt by the claimant of written notification of denial of his claim. Pursuant to this review, the claimant or his duly authorized
representative may review any documents, records and other information which are pertinent to the denied claim and submit issues and comments in writing. Effective January 1, 2002, a claimant may also submit documents, records and other
information relating to his claim, without regard to whether such information was submitted in connection with his original benefit claim. 
 (e) In the case of a claim for a Disability Retirement Benefit made on or after January 1, 2002 and before January 1, 2003, the Committee shall review the initial decision. In reviewing any denial based in whole or in part on a
medical judgment, the Committee shall consult with a health care professional who has appropriate training and experience in the field of medicine involved in the medical judgment. The health care professional engaged for this purpose shall be an
individual who is neither an individual who was consulted in connection with the adverse benefit determination that is the subject of the review, nor the subordinate of any such individual. The Plan shall provide for the identification of medical or
vocational experts whose advice was obtained on behalf of the Plan in connection with the initial denial of a claimant’s disability retirement benefit claim, without regard to whether the advice was relied upon in making the benefit
determination. 
 (f) A decision on the claimant’s appeal of the denial of benefits (other than for a disability retirement benefit
claim made on or after January 1, 2002 and before January 1, 2003) shall ordinarily be made by the Committee at the next regularly scheduled meeting that immediately follows the receipt of the request for review, unless the request for
review is received within 30 days of such meeting date. In that case, the review will occur at the second regularly scheduled meeting following the Plan’s receipt of the request for review. If an extension of time is required because of special
circumstances, the Committee will provide the claimant with written notice of the extension describing the special circumstances and the date as of which the benefit determination will be made, prior to the commencement of the extension. A benefit
determination will be made no later than the third regularly scheduled meeting of the Committee following the Plan’s receipt of the request for review. 
 In the case of a review of a disability retirement benefit made on or after January 1, 2002 and before January 1, 2003, a decision shall be made within forty-five (45) days of the Plan’s receipt of
the request for review, unless additional time is required for a decision on review, in which event the decision shall be rendered not later than ninety (90) days after receipt of the request for a ruling. Notice in writing of the extended time
required shall be given to the claimant within forty-five (45) days of his request for review. 
  

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 The decision on review shall be in writing and shall include specific reasons for the decision, written
in a manner calculated to be understood by the claimant, specific reference to the Plan provisions on which the decision is based, and effective January 1, 2002, a statement that the claimant or his authorized personal representative may review
any documents and records relevant to the claim determination, a statement describing further voluntary appeals procedures, if any, and a statement of the claimant’s right to bring civil action under ERISA Section 502(a). 
 (g) The foregoing special claims procedures provisions with respect to claims for a Disability Retirement Benefit made on or after January 1, 2002
and before January 1, 2003 shall have no effect with respect to claims for such a Disability Retirement Benefit made on or after January 1, 2003. 
 SECTION 9.5. Forfeiture in Case of Unlocatable Participant or Beneficiary. If the Committee is unable to pay benefits to any Participant or beneficiary who is entitled to benefits hereunder when such benefits
are due because the identity or whereabouts of such person cannot be ascertained, the Committee shall proceed as follows: 
 (a) As soon as
administratively possible after the Committee has determined that a Participant or beneficiary cannot be paid due to the circumstances stated above, the Committee shall submit the last known address, and any other information the Committee deems
appropriate, to a locator service in accordance with IRS procedures. 
 (b) If the locator service provides the Committee with a new address
for the Participant or beneficiary, the Committee shall mail the benefit payment to the new address as soon as administratively possible after such new address is known. If the locator service fails to identify a new address for the Participant or
beneficiary, all amounts held for his benefit shall be forfeited as of the last day of the Plan Year in which the locator service notifies the Committee that it cannot locate the individual. Upon forfeiture, all liability for payment of the benefit
shall thereupon terminate. In any such case, the funds released as a result of such forfeiture shall be dealt with as provided in Section 6.3. However, if an individual subsequently makes what the Committee determines to be a valid and proper
claim to the Committee for such amounts, the account or accounts will be restored and will be distributable without interest in accordance with the terms of this Plan. 
 SECTION 9.6. Liability of the Committee. The Committee and the members thereof, to the extent of the exercise of their authority, shall discharge their duties with respect to the Plan solely in the interests of
the Plan’s Participants and their Beneficiaries, and for the exclusive purpose of providing benefits thereto in accordance with the terms of the Plan and to defray the reasonable administration expenses thereof. In all such actions or omissions
the Committee and each member thereof shall exercise the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an
enterprise of like character and with like aims; provided, however, that no member shall be responsible for the actions or omissions of a member or any other party that is a fiduciary with respect to this Plan, other than himself, which are not in
conformity hereto, unless such member knowingly participates in or knowingly conceals such conduct which he knows to be in breach of this standard, his own conduct has enabled the other 

  

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member or other fiduciary to be in breach of this standard, or he has knowledge of such breach by another member or other fiduciary and fails to make
reasonable efforts under the circumstances to remedy such breach. 
 SECTION 9.7. Fiduciary Responsibility Insurance; Bonding. If the
Employer Company has not done so, the Committee may direct the purchase of appropriate insurance on behalf of the Plan and the Plan’s fiduciaries, including the members of the Committee, to cover liability or losses occurring by reason of the
acts or omissions of a fiduciary; provided, however, that to the extent purchased by the Plan such insurance must permit recourse by the insurer against the fiduciary in the case of a breach of a fiduciary duty or obligation by such fiduciary. The
cost of such insurance shall be borne by the Fund, unless the insurance is provided by and paid for by the Employer Company. The Trustees shall also obtain a bond covering all the Plan’s fiduciaries, to be paid from the assets of the Trust
Fund. 
 SECTION 9.8. Meetings of Committee. The Committee shall hold meetings at least once during each calendar quarter upon such
notice, at such place or places, and at such time or times as it may determine from time to time. Notice of a meeting may be waived in writing. 
 SECTION 9.9. Compensation of Committee. The members of the Committee may receive reasonable compensation for their services as the Board of Directors may from time to time determine. Such compensation and all other expenses of the
Committee, including the compensation of officers, actuaries or counsel, agents or others that the Committee may employ, shall be paid out of the Trust Fund, unless paid by the Employer Company. Notwithstanding the foregoing, any Committee member
who is employed on a full-time basis by an Employer Company shall receive no compensation, but may be reimbursed for expenses incurred. 
 SECTION 9.10. Reliance by Committee. Board of Directors and Committee members shall be fully protected with respect to any action taken or suffered by them in good faith in reliance upon the advice or opinion of any actuary,
accountant, legal counsel (other than an employee of an Employer Company), or physician, and all action so taken or suffered shall be conclusive upon all Participants and beneficiaries, and any other person claiming under the Plan. 
 SECTION 9.11. Books and Records. The Committee shall keep appropriate books and records. 
 SECTION 9.12. Disbursements. The Committee shall determine the manner in which the Trust Fund shall be disbursed under the terms of the Plan and
Trust Agreement. 
 SECTION 9.13. Allocation of Responsibility Among Fiduciaries for Plan and Trust Administration. The fiduciaries
hereunder, including the Trustee, the Employer Companies, the Board of Directors and the Committee, shall have only those specific powers, duties, responsibilities and obligations as are specifically given them under this Plan or the Trust
Agreement. In general, the Employer Companies shall have the sole responsibility for making the contributions necessary to provide benefits under the Plan as specified in Article V, and the Board of Directors shall have the sole authority to
appoint and remove the Trustee, members of the Committee and to amend or terminate, in whole or in part, this Plan or the Trust, except as otherwise provided. The Committee shall have the sole responsibility for the appointment and 

  

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removal of any Investment Manager which may be provided for under the Trust and the administration of this Plan, which responsibility is specifically
described in this Plan and the Trust. Subject to any direction from the Committee, the Trustee shall have the responsibility for the administration of the Trust and the management of the assets held under the Trust, all as specifically provided
income Trust. Each fiduciary warrants that any directions given, information furnished, or action taken by it shall be in accordance with the provisions of the Plan or the Trust, as the case may be, authorizing or providing for such direction,
information or action. Furthermore, each fiduciary may rely upon any such direction, information or action of another fiduciary as being proper under this Plan or the Trust, and is not required under this Plan or the Trust to inquire into the
propriety of any such direction, information or action. It is intended under this Plan and the Trust that each fiduciary shall be responsible for the proper exercise of its own powers, duties, responsibilities and obligations under this Plan and the
Trust and shall not be responsible for any act or failure to act of another fiduciary. No fiduciary guarantees the Trust Fund in any manner against investment loss or depreciation in asset value. 
  

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 ARTICLE X 
 GENERAL PROVISIONS 
 SECTION 10.1. Prohibition Against Attachment. (a) None of the
benefits payable hereunder shall be subject to the claims of any creditor of any Participant or Beneficiary nor shall the same be subject to attachment, garnishment or other legal or equitable process by any creditor of the Participant or
beneficiary, nor shall any Participant or beneficiary have any right to alienate, anticipate, commute, pledge, encumber or assign any of such benefits. 
 (b) If any Participant or Beneficiary under the Plan becomes bankrupt or attempts to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any benefit under the Plan, the interest of such person in
such benefit shall, in the discretion of the Committee, cease and terminate, and in that event the Committee may direct the Trustee to hold or apply the same or any part thereof to or for the benefit of such Participant or Beneficiary, his Spouse,
Domestic Partner, children, or other dependents, or any of them, in such manner and in such proportion as the Committee may deem proper. 
 (c) Exception to general prohibition against attachment for Qualified Domestic Relations Orders. 
 (i) General
rule. The restrictions of subsection (a) and subsection (b) of this Section 10.1 will not be violated by either (A) the creation of a right to payments from this Plan by reason of a Qualified Domestic Relations
Order or (B) the making of such payments. 
 (ii) Definition of Qualified Domestic Relations Order. For purposes
of this subsection (c), the term “Qualified Domestic Relations Order” means any judgment, decree, or order (including approval of a property settlement agreement), made pursuant to a State domestic relations law (including a community
property law), which relates to the provision of child support, alimony payments, or marital property rights to a Spouse, former Spouse, child, or other dependent of a Participant (an “Alternate Payee”) and which: 
 (A) creates or recognizes the right of an Alternate Payee to, or assigns to any Alternate Payee the right to, receive all or a portion of
the benefits payable with respect to a Participant under this Plan; 
 (B) clearly specifies (i) the name and last known
mailing address (if any) of the Participant and the name and mailing address of each Alternate Payee covered by the order, (ii) the amount or percentage of the Participant’s benefits to be paid by the Plan to each Alternate Payee, or
the manner in which such amount or percentage is to be determined, (iii) the number of payments or period to which such order applies, and (iv) that the order applies to this Plan; 
 (C) does not require this Plan to provide any type or form of benefit, or any option, not otherwise provided under this Plan, unless, in
the case of any payment before a Participant has separated from service, the order requires 

  

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payment of benefits to an Alternate Payee (i) on or after the date the Participant attains (or would have attained) the earliest age on which he could
elect to receive retirement benefits under the Plan, (ii) as if the Participant had retired on the date such payment is to begin under such order (but taking into account only the present value of the benefits actually accrued and not taking
into account the present value of any employer subsidy for early retirement), and (iii) in any form in which such benefits may be paid under the Plan to the Participant (other than in the form of a joint and survivor annuity with respect to the
Alternate Payee and his subsequent Spouse); 
 (D) does not require this Plan to provide increased benefits (determined on the
basis of actuarial equivalence); and 
 (E) does not require the payment of benefits to an Alternate Payee which are required
to be paid to another Alternate Payee under another order previously determined to be a Qualified Domestic Relations Order. 
 SECTION 10.2.
Facility of Payment. If any Participant or Beneficiary shall be physically or mentally incapable of receiving or acknowledging receipt of any payment due under the terms of the Plan, the Committee may direct the Trustee to make any such
payment to a legal representative or, if no legal representative shall have been appointed for him, to any person or institution maintaining such Participant or beneficiary, and the payment to such person or institution in good faith shall
constitute a valid and complete discharge for such payment. 
 SECTION 10.3. Payment to Minor Beneficiary. If the Beneficiary of any
Participant shall be a minor and no guardian shall have been appointed for him, the Committee may direct the Trustee to retain any payment due under the Plan for his benefit until he attains majority. Such amount, as authorized by the Committee, may
be held in cash, deposited in bank accounts, or invested or reinvested in direct obligations of the United States, and the income thereon may be accumulated and invested, or the income and principal may be expended and applied directly for the
maintenance, education and support of such minor without the intervention of any guardian and without application to any court. 
 SECTION
10.4. No Rights of Employment. The Plan shall not confer upon any Employee or Participant any right of employment, nor shall any provision of the Plan interfere with the right of an Employer Company to discharge any Employee. 
 SECTION 10.5. Payments Only From Trust Fund. Except as otherwise required by law, no liability shall attach to the Employer Companies for payment
of any benefits or claims hereunder and every Participant or Beneficiary or person claiming under them shall have recourse only to the Trust Fund for payment of any benefit hereunder and the rights of such persons are hereby expressly limited
accordingly. 
 SECTION 10.6. Applicable Law. All provisions of the Plan, including definitions, shall be construed according to the
laws of the State of Georgia, except to the extent preempted by Federal law. 
  

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 SECTION 10.7. Titles. Titles of Articles and Sections are inserted for convenience only and shall
not affect the meaning or construction of the Plan. 
 SECTION 10.8. Counterparts. This Plan may be executed by the Employer Companies
in various counterparts to this document, each of which shall be deemed to be an original but all shall be deemed to be one document. 
 SECTION 10.9. No Access to Books and Records. Nothing herein or in the Trust Agreement contained shall give any Participant or Beneficiary or any other person the right or privilege to examine or have access to the books or records
of any Company or of the Committee or the Trustee; nor shall any such person have any right, legal or equitable, against any Company or against any director, officer, employee, agent or representative thereof or against the Trustee or the Committee,
except as herein expressly provided or permitted by law. 
 SECTION 10.10. Procedures for Qualified Domestic Relations Orders. The
Committee shall develop and implement procedures (a) for determining whether an order received by the Plan is a “Qualified Domestic Relations Order” within the meaning of subsection (c) of Section 10.1, (b) for
administering distributions under such orders, and (c) for holding amounts which would be payable under such orders pending the determination described in subsection (a) of this Section 10.10. 
 SECTION 10.11. USERRA. Notwithstanding anything in this Plan to the contrary, contributions, benefits and service credit with respect to qualified
military service shall be provided in accordance with Section 414(u) of the Code. 
  

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 ARTICLE XI 
 TOP-HEAVY PROVISIONS 
 SECTION 11.1. Effective Date of This Article. This Article shall be
effective for all Plan Years beginning after December 31, 1983. 
 SECTION 11.2. Definitions. The following definitions apply to
this Article: 
 (a) “Top-Heavy Plan” — The Plan is a Top-Heavy Plan in any Plan Year in which: 
 (i) the Plan is a member of a Top-Heavy Group, if the Plan is described in Section 11.2(c)(i) or (ii), below; or 
 (ii) the Plan is not a member of an Aggregation Group as described in Section 11.2(c)(i) or (ii), below, and, as of the Determination
Date, the Cumulative Accrued Benefit of the Plan for Key Employees exceeds sixty percent of the Cumulative Accrued Benefit of the Plan for all Participants. 
 (b) “Key Employee” means an Employee or former Employee who at any time during the Plan Year or any of the four preceding Plan Years is: 
 (i) For Plan Years before January 1, 2002 
 (A) an officer of the Employer Company having an annual compensation from the Employer Company of more than $45,000 (provided, however,
that no more than the lesser of (A) 50 Employees or (B) the greater of three Employees or 10% of the Employees shall be treated as officers under this paragraph), 
 (B) one of the 10 Employees having an annual compensation from the Employer Company of more than $30,000 and owning the largest interests
in the Employer Company, 
 (C) an owner of five percent of the outstanding stock of the Employer Company or stock possessing
more than five percent of the total combined voting power of all stock of the Employer Company, or 
 (D) an owner of one
percent of the outstanding stock of the Employer Company or stock possessing more than one percent of the total combined voting power of all stock of the Employer Company, who has an annual compensation from the Employer Company of more than
$150,000. 
 (ii) For Plan Years beginning after December 31, 2001, 
 (A) an officer of the Employer Company having an annual compensation from the Employer Company of more than $130,000, as adjusted under
Section 416(i)(1) of the Code (provided, however, that no more than the lesser of (A) 50 Employees or (B) the greater of three Employees or 10% of the Employees shall be treated as officers under this paragraph), 
  

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 (B) an owner of five percent of the outstanding stock of the Employer Company or stock
possessing more than five percent of the total combined voting power of all stock of the Employer Company, or 
 (C) an owner
of one percent of the outstanding stock of the Employer Company or stock possessing more than one percent of the total combined voting power of all stock of the Employer Company, who has an annual compensation from the Employer Company of more than
$150,000. 
 If two Employees have the same interest in the Employer Company, the Employee with the greater annual compensation shall be treated as having a
larger interest. For purposes of determining ownership in the Employer Company (i) the constructive ownership rules of Section 318 of the Code, as modified by substituting “5 percent” for “50 percent” in
subsection (a)(2)(C) thereof, shall apply, but (ii) the rules of subsections (b), (c), and (m) of Section 414 of the Code shall not apply. Each beneficiary of a Key Employee designated under this Plan is a Key Employee.

 (c) “Aggregation Group” means a group of plans consisting of more than one plan and including: 
 (i) each plan of the Employer Company in which a Key Employee is a participant; 
 (ii) each other plan of the Employer Company which enables any plan described in (1) to meet the requirements of
Section 401(a)(4) or Section 410 of the Code; and 
 (iii) any plan not described in (i) or (ii) which the
Employer Company elects to include, provided that such inclusion does not prevent the group from meeting the requirements of Section 401(a) (4) and Section 410 of the Code. 
 (d) “Top-Heavy Group” is an Aggregation Group for which, as of the Determination Date, the Total Benefit for Key Employees exceeds
sixty percent of the Total Benefit for all Participants. 
 (e) “Determination Date” is the last day of the preceding
Plan Year. 
 (f) “Account Aggregate” is, with respect to a defined contribution plan, 
 (i) For Plan Years beginning after December 31, 2001, the sum of employee accounts plus the sum of all distributions made from
such accounts during the one-year period ending on the Determination Date, provided that (1) rollover contributions and similar transfers initiated by an Employee and made after 1983, (2) the account of any Employee who was a Key Employee
in a prior Plan Year but is no longer a Key Employee, and (3) any accrued benefits attributable to deductible employee contributions, and (4) the account of any individual who has not received any compensation from the Employer Company
(other than benefits under any Plan maintained by the Employer Company) during the one-year period ending on the 

  

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Determination Date, shall not be taken into account. In the case of a distribution made for a reason other than a termination of employment, death or
disability, this subsection shall be applied by substituting “five-year period” for “one-year period”. 
 (ii) For Plan Years beginning before December 31, 2001, the sum of employee accounts plus the sum of all distributions made from such accounts during the five-year period ending on the Determination Date, provided that
(1) rollover contributions and similar transfers initiated by an Employee and made after 1983, (2) the account of any Employee who was a Key Employee in a prior Plan Year but is no longer a Key Employee, and (3) any accrued benefits
attributable to deductible employee contributions, and (4) the account of any individual who has not received any compensation from the Employer Company (other than benefits under any Plan maintained by the Employer Company) during the
five-year period ending on the Determination Date, shall not be taken into account. 
 A transfer from one plan of the Employer Company to any other such
plan shall be considered neither a “distribution” nor a “rollover contribution” for purposes of this subsection, but a distribution from a terminated plan shall be considered a “distribution” for purposes of this
subsection if such terminated plan, had it not been terminated, would have been described in Section 11.2(c)(i) or (ii). 
 (g)
“Cumulative Accrued Benefit” is, with respect to a defined benefit plan 
 (i) For Plan Years beginning
after December 31, 2001, the sum of the present values of all accrued benefits plus the sum of distributions made with respect to such benefits during the one-year period ending on the Determination Date, provided that (1) rollover
contributions and similar transfers initiated by an Employee and made after 1983, (2) the accrued benefit of any Employee who was a Key Employee in a prior Plan Year but is no longer a Key Employee, and (3) any accrued benefits
attributable to deductible employee contributions, and (4) the accrued benefit of any individual who has not received any compensation from the Employer Company (other than benefits under any plan maintained by the Employer Company) during the
five year period ending on the Determination Date, shall not be taken into account. In the case of a distribution made for a reason other than a termination of employment, death or disability, this subsection shall be applied by substituting
“five-year period” for “one-year period”. 
 (ii) For Plan Years beginning on or before
December 31, 2001, the sum of the present values of all accrued benefits plus the sum of distributions made with respect to such benefits during the five-year period ending on the Determination Date, provided that (1) rollover
contributions and similar transfers initiated by an Employee and made after 1983, (2) the accrued benefit of any Employee who was a Key Employee in a prior Plan Year but is no longer a Key Employee, and (3) any accrued benefits
attributable to deductible employee contributions, and (4) the accrued benefit of any individual who has not received any compensation from the Employer Company (other than benefits under any plan maintained by the Employer Company) during the
five year period ending on the Determination Date, shall not be taken into account. 
  

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 A transfer from one plan of the Employer Company to any other such plan shall be considered neither a
“distribution” nor a “rollover contribution” for purposes of this subsection, but a distribution from a terminated plan shall be considered a “distribution for purposes of this subsection if such terminated plan, had it not
been terminated, would have been described in Section 11.2(c)(i) or (ii). 
 (h) “Total Benefit” is the sum of the
Account Aggregate of all plans within an Aggregation Group which are defined contribution plans, and the Cumulative Accrued Benefit of all plans within an Aggregation Group which are defined benefit plans. 
 Solely for the purpose of determining if the Plan, or any other plan included in a required aggregation group of which this Plan is a part, is Top-Heavy, the accrued
benefit of an Employee other than a Key Employee shall be determined under (a) the method, if any, that uniformly applies for accrual purposes under all plans maintained by the Employer, or (b) if there is no such method, as if such
benefit accrued not more rapidly than the slowest accrual rate permitted under the fractional accrual rate of Section 411(b)(1)(C) of the Code. 
 (i) “Total Compensation” is the Participant’s compensation as defined in Section 415(c)(3) of the Code, but shall not exceed the applicable dollar amount of Section 401(a)(17) of the
Code. 
 (j) “Testing Period” means a period of consecutive Years of Service (not exceeding five) during which the
Participant had the greatest aggregate compensation from the Employer Company, except that such years shall not include (1) years beginning after the close of the last year in which the Plan was a Top-Heavy Plan, and (2) years ending in a
Plan Year beginning before January 1, 1984. 
 (k) “Employer Company” means, for purposes of this Article, the Employer
Company and all Related Employers. 
 SECTION 11.3. Top-Heavy Vesting Schedule. For each Plan Year for which the Plan is a Top-Heavy
Plan, the vesting schedule provided in this Section 11.3 (the “Top-Heavy Vesting Schedule”) shall apply, and for each Plan Year thereafter for which the Plan is not a Top-Heavy Plan, the vesting schedule provided in Section 6.1
(the “Regular Vesting Schedule”) shall apply; provided, however, that any change in a vesting schedule shall, with respect to each Participant, be subject to Section 6.1. The Top-Heaving Vesting Schedule is as follows: 
  

			
	 NON-FORFEITABLE YEARS OF SERVICE
	  	PERCENTAGE
	 Less Than 2
	  	0
	 2 But Less Than 3
	  	20
	 3 But Less Than 4
	  	40
	 4 But Less Than 5
	  	60
	 5 But Less Than 6
	  	80
	 6 or More
	  	100

  

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 SECTION 11.4. Top-Heavy Minimum Benefit. For each Plan Year for which the Plan is a Top-Heavy
Plan, the accrued benefit derived from Employer Company contributions for each Participant who is not a Key Employee, when expressed as a Single Life Only Annuity (with no ancillary benefits) beginning at his Normal Retirement Age, shall not be less
than the product of (a) the Participant’s average compensation during the Testing Period and (b) the lesser of (1) 2% multiplied by the number of the Participant’s Years of Service with the Employer Company or (2) 20%.
For purposes of this Section 11.4, a “Year of Service” shall not be taken into account if: (i) the Plan was not a Top-Heavy Plan for any Plan Year ending during such Year of Service, (ii) such Year of Service was completed
in a Plan Year beginning before January 1, 1984, or (3) such Year of Service occurs during a Plan Year when the Plan benefits (within the meaning of Section 410(b) of the Code) no Key Employee or former Key Employee. 
 SECTION 11.5. Top-Heavy Limitation on Compensation. For each Plan Year for which the Plan is a Top-Heavy Plan, the compensation of each
Participant which is taken into account for purposes of determining contributions and benefits under this Plan shall be limited to either (a) the first $200,000 of such compensation, or (b) if a different amount has been fixed by the
Secretary of the Treasury pursuant to Section 416(d)(2) of the Code, such amount. The limit set by this Section shall be imposed after any reduction imposed elsewhere in this Plan on the compensation of a Participant which is taken into
account for purposes of determining contributions and benefits. 
 SECTION 11.6. Top-Heavy Adjustment to Section 415
Limitations. For each Plan Year for which the Plan is a Top-Heavy Plan prior to January 1, 2000, the limit imposed by Section 5.8(b)(2) shall be applied by substituting “1.0” for “1.25” in each place where it
appears, unless the Employer Company elects to make, and does make, additional contributions sufficient to meet the requirements specified in subsection (b) hereof. Such election shall only be effective for those Plan Years in which:

 (a) the Plan would not be a Top-Heavy Plan as defined in Section 11.2(a), above, if “ninety percent” were substituted
for “sixty percent” in Section 11.2(a)(ii) and Section 11.2(d), and 
 (b) with respect to each plan described in
Section 11.2(c)(i) or (ii): (1) the minimum benefit described in Section 416(c)(2) of the Code (as modified by Section 416(h)(2)(A)(ii)(II)) is provided by each such plan which is a defined contribution plan, and (2) the
minimum benefit described in Section 416(c)(1) of the Code (as modified by Section 416(h)(2)(A)(ii)(I)) is provided by each such plan which is a defined benefit plan. 
 SECTION 11.7. Certain Benefits Disregarded. The requirements of Section 11.3 and Section 11.4, above, must be met without taking into
account contributions or benefits under Chapters 2 or 21 of the Code, Title II of the Social Security Act, or any other federal or state law. 
  

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 ARTICLE XII 
 RETIREE MEDICAL BENEFITS 
 SECTION 12.1. Creation of Separate Account. 
 (a) There is created, established and maintained under this Plan a separate account known as the Medical Benefits Account. The Trustee and Administrative
Committee agree to hold and administer the Medical Benefits Account, and to receive contributions hereto, for the purpose of providing for the payment of certain medical expenses pursuant to Section 401(h) of the Code, for Retired Participants,
within the meaning of Section 12.2(d), and their Covered Dependents. The separate Account shall be for record keeping purposes only. Funds contributed to the Medical Benefits Account need not be invested separately and may be invested in the
Committee’s discretion with funds in the funding standard account without identification of which investment properties are allocable to each account. However, where the investment properties are not allocated to each account, the earnings on
such properties must be allocated between each account in a reasonable manner. 
 (b)(i) No part of the income or corpus of the Medical
Benefits Account shall be (either within the taxable year of contribution or thereafter) used for, or diverted to, any purpose other than the providing of Medical Benefits (including the provision of any retirement benefits provided under the Plan),
at any time prior to the satisfaction of all liabilities under this Plan with regard to the payment of Medical Benefits in accordance with this Article. Notwithstanding the above, the payment of any necessary or appropriate expenses attributable to
the administration of the Medical Benefits Account may be made from the income or corpus of such Account. 
 (ii) Any amounts
in the Medical Benefits Account which remain in such account following the satisfaction of all liabilities for the payment of Medical Benefits arising under this Article shall be returned to the Employer Companies. 
 (c) Notwithstanding the foregoing, a separate Medical Benefit Account shall be maintained for any Medical Benefits payable to a Five-Percent Owner, as
defined in Section 5.9(d) or his Covered Dependents. Medical Benefits for such Five-Percent Owner or his Covered Dependents shall be paid only from such account. This paragraph shall apply to all Five-Percent Owners who were such at any time
during the plan year or during any preceding plan year in which contributions were made on his behalf. 
 SECTION 12.2. Definitions.
Whenever used in this Article XII, and in the Medical Benefits Schedule attached to and made a part of this Article, the following words shall have the meaning set forth below unless otherwise clearly required by the context: 
 (a) “Covered Dependent” means a Retired Participant’s Spouse or Domestic Partner at the time of retirement (as described in the
definition of Retired Participant), and a child of the Retired Participant who meets the following conditions: 
 (i) The
child is unmarried, is the child of a Retired Participant, or the Retired Participant’s Spouse, and is under 19 years of age. Said child shall be covered up to the end of the calendar year in which he attains age 19. 
  

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 (ii) The child is unmarried, is the child of a Retired Participant, or the Retired
Participant’s Spouse, is under 25 years of age, is dependent on the Retired Participant for his principal support and maintenance, and is a full-time student. Said child shall be covered up to the end of the calendar year in which he reaches
age 25 or ceases to be a full-time student, whichever shall first occur. 
 The term child shall include an adopted child, step-child, or
foster child who is dependent on the Retired Participant for his principal support and maintenance. 
 In no event will the term Covered
Dependent include any person who is an eligible Retired Participant himself or herself nor any person who is employed full-time with an Employer Company. If both parents of any Covered Dependent child are eligible Retired Participants, then for the
purposes of the coverage, the Covered Dependent child is considered as a Covered Dependent of only the Participant whose birth date is the earlier in the calendar year. 
 (b) “Medical Benefits” means the payment of sickness, accident, hospitalization and other Medical Expenses, within the meaning of Section 401(h) of the Code, for Retired Participants and their
Covered Dependents as set forth in the insurance contract or contracts between the insurance carrier or carriers and the Plan which are summarized in the Medical Benefits Schedule attached to and made a part of this Article. 
 (c) “Medical Expense” means expenses for medical care as defined in Section 213(d)(l) of the Internal Revenue Code, as amended or
any substitute therefore. 
 (d) “Retired Participant” is defined, for purposes of this Article XII, (except as
otherwise provided in the following paragraph), as an individual who (i) was a Participant who was actively working as an Employee until his Early, Normal or Postponed Retirement Date, or who retires pursuant to Section 13.1, (ii) in
the case of a Participant who first became an Employee on or after January 1, 1989, had at least ten (10) Years of Service (five (5) Years of Service in the case of a Participant retiring under the provisions of Section 13.1) and
at least one Year of Service as a Participant in this Plan, and (iii) retired from employment as an Employee and was thereupon immediately eligible to receive an Early, Normal or Postponed Retirement Benefit hereunder (including an Early
Retirement Benefit under Section 13.1). In addition, a Participant who (i) attained his Early Retirement Date (with, in the case of a Participant who first became an Employee on or after January 1, 1989, at least 10 Years of Service
at least one of which was as a Participant in this Plan) and then dies while still employed as an Employee or (ii) has at least one Year of Service, one year as a Participant in this Plan, has been an employee of an Employer Company or a
Related Employer for at least 30 years and then dies while still employed as such an employee shall be considered a “Retired Participant” whose Covered Dependents are eligible to receive Medical Benefits in accordance with this Article.

 No Participant shall be considered to be eligible to receive retirement benefits provided under the Plan if he is still employed by an
Employer Company or Related Employer. No deferred vested Participant who terminated employment with an Employer Company prior to retirement, and no individual who first became an Employee on or after January 1, 1989 and who retired with less
than 10 Years of Service with an Employer Company or less than One Year of Service as a Participant in this Plan shall be eligible to receive Medical Benefits under this 

  

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Article XII. A Participant’s retirement from active employment as an Employee at or after his Early or Normal Retirement Date, with the immediate
right to receive a Retirement or Disability Retirement Benefit hereunder, or the death of a Participant following attainment of his Early Retirement Date while still actively employed as an Employee (with, in each case, the additional requirement
that a Participant who first became an Employee on or after January 1, 1989 must have completed at least 10 Years of Service with an Employer Company, at least one of which was as a Participant in this Plan), are conditions to eligibility for
Medical Benefits under this Article XII. Notwithstanding the foregoing, an individual who terminates employment as a result of ceasing to be eligible for his current job classification as the result of the application of a federal statutory or
regulatory age limitation shall be eligible for Medical Benefits under this Article XII immediately upon termination of employment, provided, such individual has at least one Year of Service as a Participant in this Plan. 
 Notwithstanding the foregoing, ‘Retired Participant’, for purposes of this Article XII, shall not include any individual employed, at the
time of his retirement, by an Employer Company pursuant to a collective bargaining agreement under which retirement benefits for the individual are to be provided under this Plan, but which does not specifically state that Medical Benefits are also
to be provided for said individual under this Article XII. If a member of one of the locals of the A.F.L.-C.I.O., International Association of Machinists or International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America
(“IBT”) identified on Appendix A hereto, which may be amended by resolution of the Administrative Committee from time to time, is employed by an Employer Company at the time of his retirement and is eligible, by reason of a collective
bargaining agreement, for retirement benefits under this Plan, he shall not be eligible for Medical Benefits under this Plan. 
 (e)
“Grandfathered Retired Participant” means a Retired Participant within the meaning of Section 12.2(d) who is also a Grandfathered Participant within the meaning of Article I. 
 SECTION 12.3. Duration of Coverage; Election to Continue Coverage. 
 (a) Medical Benefits shall begin to be paid with respect to claims incurred by Retired Participants, or their Covered Dependents, after the date on which coverage for medical expenses ends for such individuals under
the UPS Insurance Plan (or any successor health plan covering active Employees). Thereafter, and subject to subsections (b) and (c) below, Medical Benefits shall continue to be paid with respect to claims incurred up until the end of the
calendar month in which the first of the following occurs: 
 (i) In the case of a Retired Participant, his death or;

 (ii) In the case of a Covered Dependent who is the Spouse of the Retired Participant, the first to occur of (A) the
divorce or legal separation of the Retired Participant and Spouse, (B) the remarriage of the Spouse following the Retired Participant’s death, (C) the date upon which, following the Retired Participant’s death, the Spouse becomes
eligible for coverage under any other group health plan as the result of his employment, or (D) the death of the Spouse; 
  

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 (iii) In the case of a Covered Dependent who is the child of the Retired Participant, the
first to occur of (A) the date on which the Covered Dependent ceases to be eligible for coverage as such, or (B) the date upon which, following the Retired Participant’s death, the child becomes eligible for coverage under any other
group health plan as the result of his employment, or the employment of the Retired Participant’s surviving Spouse; and 
 (iv) the date upon which this Plan ceases to provide Medical Benefits to all or an affected class of Retired Participants and/or Covered Dependents. 
 (b) Notwithstanding the foregoing subsection (a), in the event that a Participant Contribution, as described in Section 12.10, is required to be paid with respect to Medical Benefits for any Retired
Participant or Covered Dependent, payment of Medical Benefits shall cease to be made with respect to claims incurred by such individuals during any calendar month for which a Participant Contribution is due but is not timely paid. A Retired
Participant may elect to discontinue Medical Benefits for his Covered Dependents (in favor of no or a reduced level of benefits as may be permitted from time to time by the Committee) by filing a form for this purpose with the Committee or its
designee, and by providing such other information as the Committee or its designee shall require. In such event, payment of Medical Benefits shall cease to be made with respect to claims incurred by such Covered Dependents after the effective date
of the discontinuance of coverage, or in the case of the election of a reduced level of benefits, when the applicable limitations with respect to such reduced benefit level have been exceeded or the Retired Participant (or Covered Dependent) ceases
to pay any required Participant Contribution necessary to sustain the benefit level elected. The Committee may establish procedures for permitting Covered Dependents for whom Medical Benefits have been discontinued to later resume coverage, but only
upon the provision of evidence satisfactory to the Committee of medical insurability. 
 (c) Notwithstanding the foregoing
Section 12.2(a), in certain circumstances and for a limited period of time, commencing on and after January 1, 1987, a Covered Dependent who would otherwise be ineligible for Medical Benefits under this Article due to the death or
divorce of the Retired Participant, or who is no longer a Covered Dependent as defined in paragraphs (a)(i) or (ii) of Section 12.2, shall be entitled to elect to continue to be eligible for such Medical Benefits (“Continuation
Coverage”) upon the occurrence of the following Qualifying Events: 
 (i) In the event of the death of the Retired
Participant, a Covered Dependent may elect to continue to be eligible for Medical Benefits for a period not to exceed 36 months following the Retired Participant’s death, subject to the restrictions of subparagraph (iv). 
 (ii) In the event of the divorce of a Retired Participant from his Spouse, such Spouse may elect to continue to be eligible for Medical
Benefits for a period not to exceed 36 months following the date upon which coverage would otherwise cease under the terms of the Plan, subject to the restrictions of subparagraph (iv). 
 (iii) Upon the attainment by a child of a Retired Participant of the date, as set forth in paragraphs (a)(i) and (ii) of
Section 12.2, when he is no longer a Covered 

  

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Dependent, such child may elect to continue to be eligible for Medical Benefits for a period not to exceed 36 months following such date, subject to the
restrictions of subparagraph (iv). 
 (iv) Notwithstanding the foregoing paragraphs (i), (ii) and (iii), Continuation
Coverage for a Covered Dependent shall cease upon the first to occur of the following: 
 (A) The date that such Covered
Dependent becomes covered (as an employee or otherwise) under any other group health plan which does not contain any exclusion or limitation with respect to any preexisting condition of such individual. 
 (B) The date that such Covered Dependent becomes entitled to receive Medicare benefits under Title XVIII of the Social Security Act.

 (C) The date upon which this Plan ceases to provide retiree medical benefits to any Retired Participant and his Covered
Dependents, and the Employer Companies do not provide such benefits through another funding vehicle or group health plan or plans. 
 (D) The date upon which coverage ceases as a result of the Covered Dependent failing to make timely payment of the premium required pursuant to paragraph (d) of this Section. 
 (d) The Committee shall require the payment of a premium by a Covered Dependent for any period of Continuation Coverage, subject to the following
restrictions: 
 (i) The decision to require payment of a premium, and the amount of such premium, shall be applied
consistently to all Covered Dependents of Retired Participants similarly situated; 
 (ii) The premium shall not exceed
102 percent of the “applicable premium” for such period, as that term is defined in ERISA Section 604; and 
 (iii) The premium may, at the election of the Covered Dependent, be made in monthly installments. 
 If an election by a Covered
Dependent to receive Continuation Coverage is made after the occurrence of the Qualifying Event, the Covered Dependent shall be permitted to pay for Continuation Coverage during the period preceding the election, such payment to be made within 45
days of the date of the election. 
 (e)(i) The Committee, or its delegate, shall inform each Retired Participant and his Spouse (if any) of
the rights provided under this Section 12.3, at the time of commencement of coverage under this Article or as otherwise provided by law. 
 (ii) The Committee, or its delegate, shall notify each Covered Dependent eligible to elect Continuation Coverage of his rights under this Section 12.3 within 14 

  

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days after the Committee, or its delegate, is notified of the occurrence of a Qualifying Event as set forth in paragraph (c). Notification to a Covered
Dependent who is the Spouse of the Retired Participant shall be treated as notification to all other Covered Dependents who may be eligible to elect Continuation Coverage and who reside with such Spouse at the time such notification is made.

 (f) A Covered Dependent must affirmatively elect, by a writing delivered to the Committee or its delegate, to receive Continuation
Coverage. Such election must be made no later than 60 days after the later of (1) the date of the Qualifying Event or (2) the date such Covered Dependent receives notice under Section 12.3(e)(ii). 
 SECTION 12.4. Funding Method and Policy. All contributions to fund Medical Benefits provided under this Article shall be made by the Employer
Companies, except those relating to (i) Continuation Coverage provided for in Section 12.3 hereof and (ii) that portion of coverage with respect to which Participant Contributions are required as provided for in Section 12.10
hereof. Subject to the restrictions of this Section 12.4 and Sections 12.5, and taking into account Participant Contributions and contributions for Continuation Coverage, the Employer Companies shall contribute to the Medical Benefits Account
an annual amount which is reasonably estimated to cover the total cost of the Medical Benefits to be provided hereunder and which satisfies the general requirements applicable to deductions allowable under Section 404 of the Code (as set forth
in Treasury Regulation § 1.404(a)-1). The total cost of providing Medical Benefits shall be determined in accordance with any generally accepted actuarial method which is reasonable in view of the provisions and coverage of the Plan, the
funding medium, and other applicable considerations. The amount deductible by each Employer Company on account of such contributions for any taxable year shall not exceed the greater of: 
 (a) An amount determined by distributing the remaining unfunded costs of past and current service credits as a level amount, or as a
level percentage of compensation, over the remaining future service of each Participant employed by the Employer Company. 
 (b)
10 percent of the cost which would be required to completely fund or purchase Medical Benefits provided hereunder for the Participants employed by the Employer Company and their Covered Dependents. 
 In determining the amount deductible, an Employer Company must apply either paragraph (a) for all Participants or paragraph (b) for all
Participants. If contributions paid by an Employer Company in a taxable year to fund Medical Benefits hereunder exceed the limitation of this Section, but otherwise satisfy the conditions for deduction under Section 404 of the Code, then the
excess contributions may be carried over in accordance with the provisions of Treasury Regulation § 1.404(a)(3)(f) and be deducted in a later year. For the purpose of applying paragraph (a), if the remaining future service of a Participant
is one year or less, it shall be treated as one year. 
 SECTION 12.5. Subordination to Retirement Benefits. (a) It is intended
that the Medical Benefits provided under this Article, when added to any Life Insurance Protection provided under this Plan be subordinate at all times to the retirement benefits provided under this Plan. Therefore, the aggregate of contributions
(made after the effective date of this Article XII) 

  

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for the funding of Medical Benefits pursuant to this Article XII, as well as any Life Insurance Protection, shall at no time exceed 25 percent of
the aggregate contributions (made after such effective date) other than contributions to fund past service credits. 
 (b) For purposes of
this Section, “Life Insurance Protection” means any benefit paid under the Plan on behalf of a Participant as a result of the Participant’s death to the extent such payment exceeds the amount of the reserve to provide the retirement
benefits for such Participant existing at his death. 
 SECTION 12.6. Forfeitures. In the event that a Participant’s interest in
the Medical Benefits Account is forfeited prior to termination of such account, an amount equal to the amount of the forfeiture must be applied as soon as possible to reduce Employer contributions to fund the Medical Benefits provided under this
Article. 
 SECTION 12.7. Benefits Provision. The benefits payable pursuant to this Article shall be limited to the payment of Medical
Benefits for Retired Participants and their Covered Dependents. No benefit shall be provided which is not described in Section 401(h) of the Internal Revenue Code or the Regulations thereunder. It is anticipated that the same level of Medical
Benefits shall be provided to all eligible Retired Participants, and in any event the Medical Benefits provided under this Article and the Employer contributions to fund said Benefits shall not discriminate in favor of the officers,
shareholders, supervisory employees, or highly compensated employees of the Employer Companies within the meaning of Treasury Regulation § 1.401.14. The specific Medical Benefits payable shall be as described in the Medical Benefits
Schedule attached to and made a part of this Article, which may be amended from time to time by action of the Board of Directors, consistent with the terms of this Article. 
 SECTION 12.8. Supervision of Account. The Administrative Committee shall have general supervision of the operation of the Medical Benefits Account
and shall conduct the business of said Account, including the administration of claims, in accordance with Article IX and the other provisions of this Plan, except as otherwise provided in this Article, or in accordance with applicable law.

 SECTION 12.9. Coordination with Employer-Maintained Group Medical Insurance for Active Participants and their Covered Dependents.
Notwithstanding any other provision of this Article, if a Retired Participant, or his Covered Dependent, is eligible for Medical Benefits under this Article and also eligible for medical benefits under another group medical insurance plan
sponsored and maintained by an Employer Company for active employees and their covered dependents (for example, the UPS Insurance Plan) (“Alternate Plan”), then no Medical Benefits under this Article shall be paid. Payment of Medical
Benefit under this Article shall commence on the day following the day eligibility for benefits under the Alternate Plan ceases. 
 SECTION 12.10. Participant Contributions. 
 (a) The Committee may, from time to time, require Retired Participants and
Covered Dependents to pay a portion of the cost of Medical Benefits as an annual contribution (a “Participant Contribution”), and shall in such event establish objective procedures for determining the amount and payment of Participant
Contributions. 
  

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 (b) Effective for individuals who first become Retired Participants on or after January 1, 1993, and
their Covered Dependents, an annual Participant Contribution shall be required in an amount equal to: 
 (i) the projected
per-capita cost of providing Medical Benefits for Retired Participants and/or Covered Dependents, or specified classes thereof, for the Plan Year, as determined by the Committee in accordance with such reasonable nondiscriminatory procedures as it
shall adopt from time to time; over 
 (ii) the Retired Participant’s Defined Dollar Benefit (“DDB”) balance,
as described in subsection (c) or (d) below. 
 (c) (i) Subject to the rules of this Section 12.10(c), a Retired
Participant will earn a DDB amount for each Year of Service with an Employer Company which will be applied to purchase Medical Benefits before the Retired Participant or his Covered Dependents become eligible for Medicare (“Pre-Medicare
Eligible Coverage”) and after the Retired Participant or his Covered Dependents become eligible for Medicare (“Medicare Eligible Coverage”). The DDB amount earned for each Year of Service with an Employer Company will be accumulated
over the period that the Retired Participant is employed with an Employer Company as a DDB balance (the “Pre-Medicare Eligible Coverage DDB Balance” and “Medicare Eligible Coverage DDB Balance,” collectively, the “DDB
Balance”). 
 (ii) A Retired Participant’s DDB amount for any Year of Service after December 31, 2000 with an
Employer Company will be equal to the DDB amount for the Employer Company for which the Retired Participant performed service during that Plan Year as set forth in Appendix F. If a Retired Participant performs service under more than one schedule in
any Plan Year, the Retired Participant shall receive credit for his Year of Service, if any, completed in that Plan Year under the schedule with the highest DDB amount under which he has at least one Hour of Service. The DDB amount for each Year of
Service with an Employer Company while it is an Employer Company completed prior January 1, 2001 shall be equal to $250 for Pre-Medicare Eligible Coverage and $42 for Medicare Eligible Coverage. However, except as provided in Appendix F, no DDB
amount shall be earned for Years of Service with an Employer Company that first becomes an Employer Company on or after January 1, 2001 before that Employer Company first began to offer Medical Benefits under this Plan. Except as provided
Section 12.10(d)(ii), in no event shall the Pre-Medicare Eligible Coverage DDB Balance exceed $7500 or the Medicare Eligible Coverage DDB Balance exceed $1260. Notwithstanding the foregoing, a Grandfathered Retired Participant’s DDB amount
for any Year of Service (up to a maximum of $7,500) with an Employer Company shall never be less than $250 for Pre-Medicare Eligible Coverage and $42 for Medicare Eligible Coverage. 
 (iii) The Retired Participant and his Spouse or Domestic Partner each may apply the DDB Balance to purchase Medical Benefits. If the
Retired Participant has Covered Dependents who are children, they will be treated as a unit with the younger of the Retired Participant and his Spouse. If the Retired Participant does not have a Spouse or Domestic Partner, the Covered Dependents who
are children will be treated as a 

  

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separate unit and the Retired Participant and his Covered Dependent unit each may apply the DDB Balance to purchase Pre-Medicare Eligible Coverage or
Medicare Eligible Coverage. Any unused DDB Balance may not be carried forward from one Plan Year to a future Plan Year. 
 (iv) The Pre-Medicare Eligible Coverage DDB Balance is applied to the Participant Contribution for each Plan Year (or portion thereof) prior to the calendar month in which the Retired Participant or his Spouse or Domestic Partner, as
applicable, becomes eligible for Medicare. The Medicare Eligible Coverage DDB Balance is applied to the Participant Contribution for each Plan Year (or portion thereof) from the first day of the calendar month in which the Retired Participant or his
Spouse or Domestic Partner, as applicable, becomes eligible for Medicare. The DDB Balance of a Covered Dependent who is not a Spouse or Domestic Partner will be adjusted to the Medicare Eligible Coverage DDB Balance as of the first day of the
calendar month in which the younger parent first becomes eligible for Medicare or if there is no Spouse or Domestic Partner, as of the first day of the calendar month in which the Retired Participant first becomes eligible for Medicare. 

(d) The DDB Balance credited to a Retired Participant is determined as follows: 
 (i) For a Retired Participant who did not complete at least one Year of Service with an Employer Company prior to 1993, the DDB Balance is
the sum of the DDB amounts for each of the Retired Participant’s Years of Service with an Employer Company as determined under Section 12.10(c)(ii). 
 (ii) For each Grandfathered Retired Participant who completed at least one Year of Service with an Employer Company prior to 1993, the DDB
Balance is calculated as follows: 
 (A) The sum of the DDB amounts for each of his Years of Service with an Employer Company
as determined under Section 12.10(c) subject to the maximum DDB balance thereunder plus 
 (B) Two times the DDB
amount for each of his Years of Service with an Employer Company completed prior to January 1, 1993 (up to a maximum of $15,000 for Pre-Medicare Eligible Coverage and $2520 for Medicare Eligible Coverage). 
  

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 (iii) As a minimum, each Grandfathered Retired Participant described in
Section 12.10(d)(ii) shall be credited with a minimum DDB Balance in accordance with the following table: 
  

							
	 Age at Retirement from
Employment with the
Employer Company
	  	Pre-Medicare Eligible	  	Minimum DDB Amount
Medicare Eligible
Coverage
	 65 or older
	  	$	7500	  	$	1260
	 64
	  	$	7250	  	$	1218
	 63
	  	$	7000	  	$	1176
	 62
	  	$	6750	  	$	1134
	 61
	  	$	6500	  	$	1092
	 60
	  	$	6250	  	$	1050
	 59
	  	$	6000	  	$	1008
	 58
	  	$	5750	  	$	966
	 57
	  	$	5500	  	$	924
	 56
	  	$	5250	  	$	882
	 55
	  	$	5000	  	$	840

 (e) Notwithstanding any contrary provision of this Section 12.10, 
 (i) a Retired Participant hired by an Employer Company or a Related Employer on or after January 1, 2006 shall not earn a DDB amount;

 (ii) A Retired Participant hired by Overnite or by Motor Cargo after December 31, 2001 shall not earn a DDB amount;

 (iii) an LTD Participant or a Participant receiving a Disability Retirement Benefit shall not earn Year of Service credit
or a DDB amount while he is a LTD Participant or is receiving a Disability Retirement Benefit; and 
 (iv) an individual shall
not earn a DDB amount while he is performing services for an Employer Company or a Related Employer, as a “leased employee” or who otherwise is not classified on the payroll as an employee of an Employer Company or a Related Employer
regardless of whether he is reclassified as an employee. 
  

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 ARTICLE XIII 
 SPECIAL BENEFITS UPON VOLUNTARY TERMINATION OF EMPLOYMENT 
 SECTION 13.1. Special Early
Retirement. A Participant (other than an Employee subject to a collective bargaining agreement and participating in this Plan, except to the extent so provided in the applicable collective bargaining agreement), who is actively employed by an
Employer Company as of June 15, 1995, and who has not otherwise attained his Early Retirement Date shall be eligible to retire under the Early Retirement Benefit provisions of Section 4.3 and receive an Early Retirement Benefit in an
amount determined under subsection 5.2(b)(ii)(C)(4) and (5) (except that for this purpose, subsection 5.2(b)(ii)(C)(4) and (5) shall be modified to provide that the reduction factor shall apply with respect to each month or
partial month by which the Participant’s Annuity Starting Date precedes his 55th birthday), provided that each of the following conditions is satisfied: 
 (a) Eligibility Requirements. The Participant is assigned a salary grade below Grade 26 and has, prior to August 15, 1995, both attained age 50, and either (i) in the case of a Participant who is a
“Highly Compensated Employee” (within the meaning of Code Section 414(q)), was hired by an Employer Company on or before August 15, 1975, or (ii) in the case of a Participant who is not a “Highly Compensated
Employee,” has completed at least five (5) Years of Service. 
 (b) Election Requirements. An eligible Participant described
in subsection 13.1(a) above must elect to retire and execute any related forms, releases or waivers prescribed for this purpose by the Company, during the period commencing on June 15, 1995, and ending on August 15, 1995. Any
Participant who makes such an election must actually retire by September 1, 1995, unless an extension for a specified number of days is requested by his Employer Company. 
 (c) Notwithstanding the foregoing, the following employees shall be eligible for the Special Early Retirement benefit described in this
Section 13.1: 
 (i) employees of Roadnet Technologies, Inc. who were terminated as a result of the reduction in force
occurring on March 1, 1995 and who satisfied the requirements of Section 13.1(a) as of March 1, 1995; and 
 (ii) employees of II Morrow, Inc. who were terminated as a result of the reduction in force occurring on February 2, 1995 and who satisfied the requirements of Section 13.1(a) as of February 2, 1995. 
 SECTION 13.2. Supplemental Retirement Benefit. A Participant (other than an Employee subject to a collective bargaining agreement and
participating in this Plan, except to the extent so provided in the applicable collective bargaining agreement), who is actively employed by an Employer Company as of June 15, 1995, shall be eligible to receive a supplemental retirement benefit
under the Plan following his retirement or termination of employment, provided that each of the following conditions is satisfied: 
 (a)
Eligibility Requirements. The Participant is assigned a salary grade below Grade 26 and is either (i) eligible to retire under the provisions of Section 4.2, 4.3 or 13.1 of the Plan, or (ii) a full-time management Employee who
is employed at any division, unit, operation or facility of an Employer Company other than Region 22, including all districts therein, (Air Operations) or Region 20 - District 29 (Information Services, New Jersey). 
  

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 (b) Election Requirements. An eligible Participant described in subsection 13.2(a) above must
elect to retire or voluntarily terminate employment and execute any related forms, releases or waivers prescribed for this purpose by the Company, during the period commencing on June 15, 1995, and ending on August 15, 1995. Any
Participant who makes such an election must actually retire or terminate by September 1, 1995, unless an extension for a specified number of days is requested by his Employer Company. 
 (c) Amount of Benefit. Any eligible Participant who satisfies the election requirements of subsection 13.2(b) above, shall be entitled to
receive a supplemental retirement benefit at his Normal Retirement Date, the amount of which shall be determined as follows: 
 (i) First, a weekly rate of basic salary or wages shall be determined based upon the rate of basic salary or the hourly wage rate in effect on the last day of the Participant’s active employment. Such weekly rate of basic salary for a
salaried Participant shall equal basic monthly salary divided by 4.33. Such weekly rate of basic wages for a Participant who is an hourly-paid Employee shall equal the product of the basic hourly wage rate and forty (40) hours, if the
Participant is a full-time Employee, or twenty (20) hours if the Participant is a part-time Employee. For purposes of the foregoing, a part-time employee shall be defined to include those employees with an employment code of “I,”
“E” or “D” as of June 15, 1995. 
 (ii) Second, the Participant’s weekly rate of basic salary or
wages shall be multiplied by the number of weeks with which he is credited as follows: 
 (A) Base Credit. Each
eligible Participant shall receive 4.33 weeks of credit, regardless of his length of service. 
 (B) Additional Credit.
In addition, each eligible Participant shall be credited with two (2) weeks for each full year of employment by an Employer Company, measured by each twelve (12) month anniversary date from date of hire, and excluding any fractional year,
up to a maximum of forty (40) weeks of such additional credit. 
 (iii) Third, for eligible Participants who are covered
by the UPS Managers Incentive Plan, an amount equal to the product of (i) and (ii), where (i) is the product of (A) the eligible Participants weekly rate of basic salary or wages, (B) 4.33 and (C) 1.25 and (ii) is a
fraction, the numerator of which is eight (8) and the denominator of which is twelve (12). 
 (iv) Fourth, the sum of the
amounts described in subsection 13.2(c)(ii) and (iii) above shall be increased each year by the percentage rate(s) of interest described in subsection 5.7(c), from the first day of the month following the last day on which the
Participant was actively employed until his Normal Retirement Date. 
  

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 (v) Fifth, the lump sum amount described in subsection 13.2(c)(iv) above shall be
converted to a Single Life Only Annuity using, for conversion purposes, the 1971 Towers, Perrin, Forster and Crosby Forecast Morality Table and the interest rate(s) described in subsection 5.7(c), provided, however, that for participants whose
distributions commence on or before December 31, 1995, the interest rate will be the greater of the interest rate set forth in subsection 5.7(c) or such rate as was in effect as of January 1, 1995. Such Single Life Only Annuity (consisting
of monthly payments commencing at Normal Retirement Date) shall hereafter be referred to as the “Supplemental Retirement Benefit.” 
 (d) Form of Benefit. If an eligible Participant is not married as of his Supplemental Retirement Benefit commencement date, the normal form of payment of such benefit will be a Single Life Only Annuity, commencing on his Normal
Retirement Date. If an eligible Participant is married as of his Supplemental Retirement Benefit commencement date, the Normal Form of payment of his Supplemental Retirement Benefit will be a Qualified Joint and Survivor Benefit, commencing on his
Normal Retirement Date, and the amount of his monthly Supplemental Retirement Benefit will be reduced in the manner described in subsection 1.1(b). 
 (e) Alternate Benefit Elections. Each eligible Participant may elect, subject to the spousal consent provisions contained in Section 5.4(b), either (i) to receive his Supplemental Retirement Benefit in any of the forms
permitted under Article V as soon as practicable following his termination of employment or as of an Early or Normal Retirement Date, if later, or (ii) in the form of an immediate single lump sum payment equal to the greater of (A) the
actuarial equivalent present value of the monthly Supplemental Retirement Benefit, or (B) the sum of the amounts described in subsection 13.2(c)(ii) and (iii) above. (For purposes of the preceding sentence, actuarial equivalence will
be determined by use of the mortality table referenced in Section 13.2(c)(v) and the rate(s) of interest described in subsection 5.7(c), provided, however, that for participants whose distributions commence on or before December 31,
1995, the interest rate will be the greater of the interest rate set forth in subsection 5.7(c) or such rate as was in effect as of January 1, 1995). Notwithstanding the foregoing, in the event that an eligible Participant’s
Supplemental Retirement Benefit is to be paid as an annuity, the actual form of annuity payment shall be that form which is in effect for the payment of the eligible Participant’s Normal or Early Retirement Benefit, if any. 
 SECTION 13.3. Legal Compliance. Notwithstanding the foregoing, the eligibility of Participants who are “Highly Compensated Employees”
(within the meaning of Code Section 414(q)) for the special benefits provided under this Article XIII (and/or the amount of such benefits) shall be limited to the extent required to satisfy the applicable nondiscrimination requirements of
the Code. 
  

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 THE UPS RETIREMENT PLAN 
 APPENDIX A 
 In accordance with Section 12.2(d) of the UPS Retirement Plan,
the following is a list of locals of the A.F.L.-C.I.O, the International Association of Machinists and the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America (“IBT”) the members of which are entitled to
Benefit Service towards retirement benefits hereunder, but not Medical Benefits under Articles XII of the Plan: 
  

			
	 1)
	 	Southern Ohio district:
		
	 (i)
	 	IBT Local 92 (center clerks)
		
	 (ii)
	 	IBT Local 100 (center clerks)
		
	 (iii)
	 	IBT Local 651 (center clerks)
		
	 (iv)
	 	Office and Professional Employees International, A.F.L.-C.I.O., Local 98 (full-time clerical employees hired prior to December 31, 1985)
		
	 2)
	 	Central Ohio district:
		
	 (i)
	 	IBT Local 20 (center clerks)
		
	 (ii)
	 	IBT Local 40 (center clerks)
		
	 (iii)
	 	IBT Local 413 (center clerks)
		
	 (iv)
	 	IBT Local 637 (center clerks)
		
	 (v)
	 	IBT Local 908 (center clerks)
		
	 (vi)
	 	IBT Local 957 (center clerks)
		
	 3)
	 	Northern Ohio district:
		
	 (i)
	 	IBT Local 92 (center clerks)
		
	 (ii)
	 	IBT Local 348 (center clerks)
		
	 (iii)
	 	IBT Local 377 (center clerks)
		
	 (iv)
	 	IBT Local 407 (center clerks and Delivery Information center clerks)
		
	 (v)
	 	IBT Local 571 (center clerks)
		
	 (vi)
	 	International Association of Machinists, Local 1363 (part-time)

  

 - 89 - 

 THE UPS RETIREMENT PLAN 
 APPENDIX B 
 The following table sets forth factors, by year of retirement,
death or disability, to be utilized pursuant to subparagraph 5.1(c)(iii)(B) of the Plan, to determine the benefit payable pursuant to paragraph 5.1(c) of the Plan. 
  

			
	Year	  	Applicable Factor
	1961	  	2.00
	1962	  	1.97
	1963	  	1.93
	1964	  	1.90
	1965	  	1.85
	1966	  	1.77
	1967	  	1.70
	1968	  	1.60
	1969	  	1.47
	1970	  	1.34
	1971	  	1.25
	1972	  	1.19
	1973	  	1.07
	1974	  	.88
	1975	  	.73
	1976	  	.65
	1977	  	.56
	1978	  	.46
	1979	  	.32

  

 - 90 - 

 THE UPS RETIREMENT PLAN 
 APPENDIX C 
 The following table sets forth factors, by year of retirement,
death or disability, to be utilized pursuant to subparagraph 5.1(d)(iii)(B) of the Plan, to determine the benefit payable pursuant to Paragraph 5.1(d) of the Plan. 
  

			
	Year	  	Applicable Factor
	1961	  	2.60
	1962	  	2.56
	1963	  	2.52
	1964	  	2.48
	1965	  	2.42
	1966	  	2.34
	1967	  	2.25
	1968	  	2.13
	1969	  	1.98
	1970	  	1.83
	1971	  	1.72
	1972	  	1.64
	1973	  	1.50
	1974	  	1.28
	1975	  	1.11
	1976	  	1.01
	1977	  	.90
	1978	  	.79
	1979	  	.63
	1980	  	.46
	1981	  	.35
	1982	  	.29
	1983	  	.26
	1984	  	.23

  

 - 91 - 

 Effective January 1, 1996: 
 THE UPS RETIREMENT PLAN 
 APPENDIX D 
 ADDITIONAL MONTHLY RETIREMENT BENEFIT 
 Pursuant to this Appendix D, the
following list of Employees, identified by Social Security number, shall be entitled to receive the corresponding Additional Monthly Retirement Benefits, in accordance with the terms and conditions of Section V of the Plan. 
  

			
	 Security
 Number
	  	 Additional Monthly
 Retirement Benefit

		  	

  

 - 92 - 

			
	 Security
 Number
	  	 Additional Monthly
 Retirement Benefit

		  	

  

 - 93 - 

			
	 Security
 Number
	  	 Additional Monthly
 Retirement Benefit

		  	

 Criteria used to determine the group of Employees eligible for, and the amount of, the Additional Monthly
Retirement Benefits shall comply with all provisions of the Code including Code §401(a)(4) and §415. 
  

 - 94 - 

 THE UPS RETIREMENT PLAN 
 APPENDIX E 
 FORMER ROLLINS EMPLOYEES 
 Former Rollins Employees. Notwithstanding any contrary provision of this Plan, any Employee who was employed by Rollins Logistics, Inc. Rollins
Dedicated Carriage Services, Inc. or Rollins Transportation Systems, Inc. (each, “Rollins”) and is identified at the end of this Appendix E as a “transfer employee” pursuant to Section 5.7 of that certain Asset Purchase
Agreement dated November 12, 1999 by and among Worldwide Dedicated Services, Inc., Rollins Truck Leasing Corp., Rollins Logistics, Inc. Rollins Dedicated Carriage Services, Inc. and Rollins Transportation Systems, Inc. shall receive credit for
all service completed with Rollins or any person that directly or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with Rollins (a “Rollins Affiliate”) or any predecessor to Rollins
for purposes of the following: 
 (a) eligibility requirements described in Section 2.1; 
 (b) eligibility for a Deferred Vested Benefit as described in Section 4.4; 
 (c) eligibility for an Early Retirement Benefit as described in Article V; and 
 (d) eligibility for retiree medical benefits described in Article XII. 
 Under no circumstances will service with Rollins, a Rollins Affiliate or a predecessor of Rollins be counted as Benefit Service or for purposes of determining the amount of the Participant Contribution for or the
amount of retiree medical benefits under Article XII 
  

									
	 Name
	  	Rollins DOE	  	WDS DOE	  	Termination Date	  	Vested as of 8/02
		  		  		  		  	

  

 - 95 - 

									
		  		  		  		  	

  

 - 96 - 

 THE UPS RETIREMENT PLAN 
 APPENDIX F-1 
 RPA POINTS AND DDB AMOUNTS 
 This Appendix F-1 shall apply to each Participant and each Retired Participant (as defined in Article XII) who is employed by one or more of
the Employer Companies listed below as provided in the Plan. 
 Employer Companies 
 The Employer Companies subject to this Appendix F-1 are as follows: 
  

					
	 United Parcel Service
 Name of Employer Company
	  	 Date of Participation
	  	 Date
 Participation Ceased

	Trailer Conditioners, Inc.	  	January 1, 2001	  	
	United Parcel Service Co.	  	January 1, 2001	  	
	United Parcel Service General Services Co.	  	January 1, 2001	  	
	UPS Fuel Services, Inc. (UPS Aviation Services, Inc. prior to January 1, 2003)	  	January 1, 2001	  	
	UPS International General Services Co.	  	January 1, 2001	  	
	UPS Procurement Services Corporation	  	January 1, 2001	  	
	UPS Worldwide Forwarding, Inc.	  	January 1, 2001	  	
	United Parcel Service, Inc. (Ohio)	  	January 1, 2001	  	
	BT Realty Holdings, Inc.	  	January 1, 2001	  	
	United Parcel Service, Inc. (NY)	  	January 1, 2001	  	
	BT Realty Holdings II, Inc.	  	January 1, 2001	  	
	UPS Latin America, Inc.	  	January 1, 2001	  	
	United Parcel Service of America, Inc.	  	January 1, 2001	  	

 RPA Points 
  

			
	Alternative Points:	  	20 per year of Benefit Service
		
	Alternative-PLUS Points:	  	5 per year of Benefit Service
		
	Integrated Points:	  	12 per year of Benefit Service
		
	Integrated-PLUS Points:	  	4 per year of Benefit Service

  

 - 97 - 

				
	 	  	Annual DDB
Amount per Year
of Service*
	Pre-Medicare Eligible Coverage	  	$	250 per Year
	Medicare Eligible Coverage	  	$	42 per Year

	*	Year of Service means a Year of Service with an Appendix F-1 Employer Company while it was an Appendix F-1 Employer Company. 

  

 - 98 - 

 THE UPS RETIREMENT PLAN 
 APPENDIX F-2 
 RPA POINTS AND DDB AMOUNTS 
 This Appendix F-2 shall apply to each Participant and each Retired Participant (as defined in Article XII) who is employed by one or more of
the Employer Companies listed below as provided in the Plan. 
 Employer Companies 
 The Employer Companies subject to this Appendix F-2 are as follows: 
  

					
	 Name of Employer Company
	  	 Effective Date of
 RPA Schedule
	  	 Date
 Participation Ceased

	UPS Capital Corporation	  	January 1, 2001	  	
	UPS Capital Insurance Agency, Inc. (Glenlake Insurance Agency, Inc. prior to August 12, 2002)	  	January 1, 2001	  	
	UPS Capital Insurance Agency, Inc. of California (Glenlake Insurance Agency, Inc. of California prior to August 13, 2002)	  	January 1, 2001	  	

 RPA Points 
  

			
	Alternative Points:	  	12 per year of Benefit Service
		
	Alternative-PLUS Points:	  	4 per year of Benefit Service
		
	Integrated Points:	  	4 per year of Benefit Service
		
	Integrated-PLUS Points:	  	4 per year of Benefit Service

  

 - 99 - 

				
	 	  	Annual DDB
Amount per Year
of Service*
	Pre-Medicare Eligible Coverage	  	$	0
	Medicare Eligible Coverage	  	$	0

	*	Year of Service means a Year of Service with an Appendix F-2 Employer Company while it was an Appendix F-2 Employer Company. 

  

 - 100 - 

 THE UPS RETIREMENT PLAN 
 APPENDIX F-3 
 RPA POINTS AND DDB AMOUNTS 
 This Appendix F-3 shall apply to each Participant and each Retired Participant (as defined in Article XII) who is employed by one or more of
the Employer Companies listed below as provided in the Plan. 
 Employer Companies 
 The Employer Companies subject to this Appendix F-3 are as follows: 
  

					
	 Name of Employer Company
	  	 Effective Date
 of
 RPA Schedule
	  	 Date
 Participation Ceased

	Pax Logistics International, Ltd.	  	January 1, 2001	  	
	UPS Logistics Technologies, Inc. (f/k/a Roadnet Technologies, Inc.)	  	January 1, 2001	  	
	UPS Supply Chain Management, Inc. (f/k/a UPS Worldwide Logistics)	  	January 1, 2001	  	
	Diversified Trimodal, Inc. (d/b/a Martrac)	  	January 1, 2001	  	
	Worldwide Dedicated Services, Inc.	  	January 1, 2001	  	

 RPA Points 
  

			
	Alternative Points:	  	5 per year of Benefit Service
		
	Alternative-PLUS Points:	  	4 per year of Benefit Service
		
	Integrated Points:	  	4 per year of Benefit Service
		
	Integrated-PLUS Points:	  	4 per year of Benefit Service

  

 - 101 - 

				
	 	  	Annual DDB
Amount per Year
of Service*
	Pre-Medicare Eligible Coverage	  	$	0
	Medicare Eligible Coverage	  	$	0

	*	Year of Service means a Year of Service with an Appendix F-3 Employer Company while it was an Appendix F-3 Employer Company.  

  

 - 102 - 

 THE UPS RETIREMENT PLAN 
 APPENDIX F-4 
 RPA POINTS AND DDB AMOUNTS 
 This Appendix F-4 shall apply to each Participant and each Retired Participant (as defined in Article XII) who is employed by one or more of
the Employer Companies listed below as provided in the Plan. 
 Employer Companies 
 The Employer Companies subject to this Appendix F-4 are as follows: 
  

					
	 Name of Employer Company
	  	 Effective Date of
 RPA Schedule
	  	 Date Participation
Ceased

	UPS Aviation Technologies, Inc. (f/k/a II Morrow)	  	January 1, 2001	  	

 RPA Points 
  

			
	Alternative Points:	  	5 per year of Benefit Service
		
	Alternative-PLUS Points:	  	4 per year of Benefit Service
		
	Integrated Points:	  	4 per year of Benefit Service
		
	Integrated-PLUS Points:	  	4 per year of Benefit Service

  

 - 103 - 

				
	 	  	Annual DDB
Amount per Year
of Service*
	Pre-Medicare Eligible Coverage	  	$	0
	Medicare Eligible Coverage	  	$	0

	*	Year of Service means a Year of Service with an Appendix F-4 Employer Company while it was an Appendix F-4 Employer Company.  

  

 - 104 - 

 THE UPS RETIREMENT PLAN 
 APPENDIX F-5 
 RPA POINTS AND DDB AMOUNTS 
 This Appendix F-5 shall apply to each Participant and each Retired Participant (as defined in Article XII) who is employed by one or more of
the Employer Companies listed below as provided in the Plan. 
 Employer Companies 
 The Employer Companies subject to this Appendix F-5 are as follows: 
  

					
	 Name of Employer Company
	  	 Effective Date of
 RPA Schedule
	  	 Date Participation
Ceased

	UPS Customhouse Brokerage	  	January 1, 2001	  	

 RPA Points 
  

			
	Alternative Points:	  	5 per year of Benefit Service
		
	Alternative-PLUS Points:	  	4 per year of Benefit Service
		
	Integrated Points:	  	4 per year of Benefit Service
		
	Integrated-PLUS Points:	  	4 per year of Benefit Service

  

				
	 	  	Annual DDB
Amount per Year
of Service*
	Pre-Medicare Eligible Coverage	  	$	0
	Medicare Eligible Coverage	  	$	0

	*	Year of Service means a Year of Service with an Appendix F-5 Employer Company while it was an Appendix F-5 Employer Company.  

  

 - 105 - 

 THE UPS RETIREMENT PLAN 
 APPENDIX F-6 
 DDB AMOUNTS 
 This Appendix F-6 shall apply to each Participant who is employed by one or more of the Employer Companies listed below whose initial date of hire by
such Employer Company was prior to January 1, 2002 and who retires after July 1, 2006. 
 Employer Companies 
 The Employer Companies subject to this Appendix F-6 are as follows: 
  

					
	 Name of Employer Company
	  	 Effective Date of
 Participation
	  	 Date
Participation
Ceased

	UPS Ground Freight, Inc.	  	May 1, 2006	  	
	Overnite Transportation Company (for periods before May 1, 2006)	  	January 1, 2006	  	April 30, 2006
	Overnite Corporation (for periods before May 1, 2006)	  	January 1, 2006	  	April 30, 2006
	Motor Cargo	  	January 1, 2006	  	April 30, 2006

  

			
	 	  	 Annual DDB
Amount per Year
of
Service1

	Pre-Medicare Eligible Coverage	  	$135 (Effective for all Years of Service with the Employer Companies subject to this Appendix F-6, except Years of Service with Motor Cargo prior to January 1, 2006 shall not be
included)
	Medicare Eligible Coverage	  	$0

	 1
	 Year of Service means each year of service for vesting purposes completed with an Appendix F-6
Employer Company, without regard to whether it was an Employer Company when such service was completed. 

  

 - 106 - 

 THE UPS RETIREMENT PLAN 
 APPENDIX G 
 LIST OF EMPLOYER COMPANIES WITH UPS FREIGHT FORMULA

  

					
	 Employer Company
	  	 Date of Participation
	  	 Date Participation Ceased

	 Overnite Corporation
	  	January 1, 2006	  	May 1, 2006, as a result of merger into UPS Ground Freight, Inc.
	 Overnite Transportation Company
	  	January 1, 2006	  	May 1, 2006, as a result of merger into UPS Ground Freight, Inc.
	 Motor Cargo
	  	January 1, 2006	  	May 1, 2006, as a result of merger into UPS Ground Freight, Inc.
	 UPS Ground Freight, Inc.
	  	May 1, 2006	  	

  

 - 107 - 

 THE UPS RETIREMENT PLAN 
 APPENDIX H EMPLOYER COMPANIES 
 EFFECTIVE JULY 1, 2006 
  

					
	 Company Name
	  	 Effective Date of Participation
	  	 Effective Date of Participation Cessation

	 BT Realty Holdings II, Inc.
	  	May 18, 1999	  	
	 BT Realty Holdings, Inc.
	  	May 12, 1999	  	
	 Diversified Trimodal, Inc. (b/d/a Martrac)
	  	January 1, 1980	  	December 31, 2002 (Merged into UPS Supply Chain Management, Inc. December 31, 2002)
	 Pax Logistics International, Ltd.
	  	May 18, 1998	  	Dissolved December 31, 2002
	 Trailer Conditioners, Inc.
	  	March 22, 1982	  	
	 UPS Capital Insurance Agency, Inc. (Glenlake Insurance Agency, Inc. prior to August 12, 2002)
	  	July 29, 1998	  	
	 UPS Capital Insurance Agency, Inc. of California (Glenlake Insurance Agency, Inc. of California prior to August 13, 2002)
	  	August 10, 1999	  	
	 United Parcel Service Co.
	  	September 1, 1961	  	
	 United Parcel Service General Services Co.
	  	September 1, 1961	  	
	 United Parcel Service of America, Inc.
	  	September 1, 1961	  	
	 United Parcel Service, Inc. (NY)
	  	September 1, 1961	  	
	 United Parcel Service, Inc. (Ohio)
	  	September 1, 1961	  	
	 UPS Aviation Technologies, Inc (f/k/a II Morrow)
	  	December 29, 1986	  	Sold to Garmin International, Inc. August 22, 2003
	 UPS Capital Corporation
	  	May 28, 1998	  	
	 UPS Customhouse Brokerage
	  	April 1, 1985	  	
	 UPS Fuel Services, Inc. (UPS Aviation Services, Inc. prior to January 1, 2003)
	  	February 7, 1989	  	
	 UPS Ground Freight, Inc.
	  	May 1, 2006	  	
	 UPS International General Services Co.
	  	August 12, 1998	  	
	 UPS Latin America, Inc.
	  	November 12, 1993	  	
	 UPS Logistics Technologies, Inc. (f/k/a Roadnet Technologies, Inc.)
	  	May 12, 1986	  	
	 UPS Procurement Services Corporation
	  	September 9, 1997	  	

  

 - 108 - 

					
	 Company Name
	  	 Effective Date of Participation
	  	 Effective Date of Participation Cessation

	 UPS Supply Chain Management, Inc. (f/k/a UPS Worldwide Logistics)
	  	December 18, 1992	  	Merged into UPS Logistics Group, Inc. December 31, 2002
	 UPS Truck Leasing, Inc.
	  	September 11, 1981	  	Sold to Rollins Leasing Corp. January 1, 2000.
	 UPS Worldwide Forwarding, Inc.
	  	August 12, 1988	  	
	 Worldwide Dedicated Services, Inc.
	  	June 9, 1995	  	
	 Motor Cargo
	  	January 1, 2006	  	May 1, 2006 (merged with UPS Ground Freight, Inc. May 1, 2006)
	 Overnite Transportation Company
	  	January 1, 2006	  	May 1, 2006 (merged with UPS Ground Freight, Inc. May 1, 2006)
	 Overnite Corporation
	  	January 1, 2006	  	May 1, 2006 (merged with UPS Ground Freight, Inc. May 1, 2006)
	 UPS Ground Freight, Inc.
	  	May 1, 2006	  	
	 UPS Logistics Group, Inc.
	  	December 31, 2002	  	

  

 - 109 - 

 THE UPS RETIREMENT PLAN 
 APPENDIX I 
 SPECIAL OPL RETIREMENT BENEFIT 
 SECTION 1 Special OPL Retirement Benefit. Notwithstanding any other provision in this Plan, the provisions in this Appendix I shall apply to the terms of the
participation of any Grandfathered OPL Participant to the extent that such provisions are different from or supplement the provisions otherwise set forth in the Plan. 
 SECTION 2 Definitions. 
 (a) “Compensation” generally has the same meaning set forth Article I of
the Plan; however, for a Grandfathered OPL Participant who completes an Hour of Service as an Employee on or after March 1, 2002 determined without regard to this Section, Compensation shall also include remuneration actually paid by OPL to
such Grandfathered OPL Participant for the applicable year to the extent such remuneration was included as “compensation” under the OPL Plan. 
 (b) “Employer Company” generally has the same meaning set forth in Article I of the Plan; however, solely with respect to a Grandfathered OPL Participant, OPL also shall be considered an Employer Company. 
 (c) “Grandfathered OPL Participant” means a former participant in the OPL Plan who is listed below: 
  

					
		  		  	

 (d) “Hour of Service” generally has the same meaning set forth Article I of the Plan; however,
for a Grandfathered OPL Participant who completes an Hour of Service as an Employee on or after March 1, 2002 determined without regard to this Section, an Hour of Service shall also include an hour of service with OPL and any employer that
would be considered a single employer with OPL under Section 414(b), (c), (m) and (o) of the Code to the extent such hour of service was included as an “hour of service” under the OPL Plan. 
 Solely for purposes of entitlement to retiree medical benefits under Article XII of the Plan, including the determination of whether such Grandfathered
OPL Participant is a 

  

 - 110 - 

 
Grandfathered Retired Participant, each Grandfathered OPL Participant shall be deemed to have an Hour of Service for each “hour of service” he was
credited with under the OPL Plan. 
 (e) “OPL” means the Overseas Partners Ltd, Overseas Partners Capital Corporation and any other employer
that participated in the OPL Plan on March 1, 2002. 
 (f) “OPL Minimum Benefit” means the protected minimum benefit described in
Section 4 of this Appendix. 
 (g) “OPL Plan” means the Overseas Partners Ltd. and Subsidiaries Retirement Plan, as amended and
restated effective as of January 1, 2000, and as further amended through April 15, 2001. 
 SECTION 3 OPL RPA Point Service Assumption. A
Grandfathered OPL Participant who completes an Hour of Service as an Employee on or after March 1, 2002 determined without regard to Section 2 of this Appendix shall be subject to Appendix F-1 with respect to his RPA Point accrual until
the later of January 1, 2001 or his actual reemployment commencement date with an Employer Company without regard to Section 2(b) of this Appendix. Beginning on the later of January 1, 2001 or his actual reemployment commencement date
without regard to Section 2(b) of this Appendix, a Grandfathered OPL Participant will accrue RPA Points under the applicable Appendix covering the Employer Company with which he is employed. 
 SECTION 4 Grandfathered OPL Benefit. 
 (a) OPL Benefits in Pay
Status on March 1, 2002. With respect to any Grandfathered OPL Participant whose retirement benefit under the OPL Plan was in pay status on March 1, 2002, payment of such benefit shall continue under this Appendix for payments due on
or after April 1, 2002 in the same amount and benefit form as set forth below, which is the benefit being paid from the OPL Plan on February 28, 2002: 
 OPL Benefits in Pay Status on March 1, 2002 
  

					
	 Participant
	  	Monthly Benefit	  	 Form

		  		  	
		  		  	

 OPL Minimum Accrued Benefit 
  

			
	 Participants
	  	Total Monthly Benefit
Accrued Benefit
		  	

  

 - 111 - 

 (b) OPL Minimum Benefit. The accrued benefit of a Grandfathered OPL Participant shall never be less than the
Grandfathered OPL Participant’s OPL Minimum Benefit, which is the OPL Minimum Accrued Benefit in Section 4(b)(i) adjusted by the applicable Grandfathered Actuarial Factors in Section 4(b)(ii) and, if applicable, the applicable early
retirement reduction factors set forth in Section 5.2(b)(ii)(C)(4) of the Plan or the early commencement reduction factor set forth in Section 5.2(c)(ii)(A)(6)(b) of the Plan, each determined without regard to whether such Grandfathered
OPL Participant has an Hour of Service as an Employee on or after January 1, 1992 and based upon such Grandfathered OPL Participant’s years of “benefit service” under the OPL Plan on February 28, 2002. 
 (i) OPL Minimum Accrued Benefit. The OPL Minimum Accrued Benefit of a Grandfathered OPL Participant is set forth in
Section 4(a) above, which is the Grandfathered OPL Participant’s monthly benefit under the OPL Plan payable at Normal Retirement Age in the Normal Form determined as if such Grandfathered OPL Participant had terminated employment with UPS
and OPL on the earlier of February 28, 2002 or the date he last actually terminated employment with UPS and OPL. 
 Termination of employment with UPS and OPL for the purpose of Section 4(b) of this Appendix means the termination of employment with all Employer Companies and Related Employers as well as OPL and all employers that would be considered
a single employer with OPL under Section 414(b), (c), (m) and (o) of the Code. 
 (ii) Grandfathered
Actuarial Factors. 
 (A) Actuarial Equivalent. For purposes of determining a Grandfathered OPL Participant’s OPL
Minimum Benefit, the Actuarial Equivalent factors are as follows: 
 (1) For the annuity benefit set forth in
Section 4(b)(iii)(A), an interest rate of 7.5 percent and the 1983 GAM mortality table (blended 50 percent male, blended 50 percent female). 
 (2) For the annuity benefit set forth in Section 4(b)(i), 
 a. with respect to the
Qualified Joint and Survivor Benefit, 90 percent of the Participant’s monthly benefit payable in the Normal Form determined under Section 5.2(a), Section 5.2(b) or Section 5.2(c) increased (or decreased) by 0.5 percent for each
year the Spouse’s or beneficiary’s age is greater (or less) than the Participant’s age, with no minimum but to a maximum of 99 percent. 
 b. with respect to the Single Life Annuity with 120-Month Guarantee, 95 percent of the Participant’s monthly benefit payable in the Normal Form. 
  

 - 112 - 

 (iii) Special Optional Forms of Benefit Limited to OPL Minimum Benefit. 
 (A) UPS Retirement Plan Termination. Subject to the rules set forth in Section 5.3 of the Plan, a Grandfathered OPL
Participant, upon the termination of the UPS Retirement Plan, shall have the option to receive the Present Value of the Grandfathered OPL Participant’s accrued benefit in the OPL Plan defined in Section 4(b)(i) determined as if such
Grandfathered OPL Participant had terminated employment with UPS and OPL on the earlier of February 28, 2002 or the date he last actually terminated employment with UPS and OPL in a single cash lump sum payment or an immediate annuity which
shall be the Actuarial Equivalent value of the benefit defined in Section 4(b)(i) determined as described above. 
 (B)
Present Value. For purposes of this Section, Present Value means the value of the Normal Form of benefit payment based the mortality table the Secretary of the Treasury prescribes, based on the prevailing commissioners’ standard table
(described in Section 807(d)(5)(A) of the Code) used to determine reserves for group annuity contracts issued on the date as of which present value is being determined (without regard to any other subparagraph of Section 807(d)(5) of the
Code) and, for benefits paid on or before March 31, 2003, the annual rate of interest on 30 year Treasury securities for the month before the date of distribution or the Applicable Interest Rate, whichever rate produces the greater amount, and,
for benefits paid on and after April 1, 2003, the Applicable Interest Rate. 
  

 - 113 - 

 UPS RETIREMENT PLAN 
 APPENDIX J 
 UPS FREIGHT/OVERNITE SUPPLEMENTAL BENEFIT SCHEDULE 
 EFFECTIVE JANUARY 1, 2006 
 The
provisions of this Appendix J will apply only to Grandfathered Overnite Participants and certain UPS Freight/Overnite Participants. References to Articles and Sections are to Articles and Sections of this Appendix J unless otherwise
expressly indicated. 
 DEFINITIONS 
 Wherever used herein or in the main text of the Plan with respect to an Overnite Employee, the following capitalized terms shall have the meaning set forth below unless otherwise clearly required by the context. If a
capitalized term used in this Appendix J or in the main text of the Plan, is not defined herein it will have the same meaning assigned to such term in the main text of the Plan. 
 “Active Participant” means as of any point in time, an Overnite Participant who at that point is or was eligible to accrue a benefit under either the Overnite Plan or this Plan, as applicable.

 “Benefit Service” as defined in the main text of the Plan shall include 
 (a) each full year of “credited service completed on or before December 31, 2005; other than service that is disregarded under Section 9.02
of the Overnite Plan; and 
 (b) for each Overnite Participant who completed at least one “hour of service” during his
“computation period” for “credited service” that began in 2005, one year of Benefit Service. 
 The terms “credited service,”
“computation period,” and “hour of service” have the meaning assigned to such terms in the Overnite Plan. 
 “Compensation” means for purposes of determining Final Average Compensation for benefits the Annuity Starting Date for which is on or after January 1, 2006 with respect to Plan Years beginning prior to January 1,
2006 included in such average, “Compensation” as defined in Treasury Regulation Section 1.415-2(d)(2) paid by Overnite or an “affiliated company” (as defined in Section 2.03 of the Overnite Plan) to an Overnite
Employee, including, any elective deferral (as defined in Section 402(g)(3) of the Code) and any elective contribution or elective deferral that is excluded from gross income under Sections 125, 132(f)(4), 414(v)(2) or 457 of the Code.
Notwithstanding the foregoing, Compensation shall exclude amounts described in (1)-(6) below: 
 (1) Contributions made by Overnite or an
“affiliated company” to a plan of deferred compensation to the extent that, before the application of Code section 415 limitations to that 

  

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plan, the contributions are not includable in the gross income of the Overnite Employee for the taxable year in which contributed, as described in Treasury
1.415-2(d)(3)(i). 
 (2) Amounts realized from the exercise of a nonqualified stock option, as described in Treasury Regulation
Section 1.415-2(d)(3)(ii). 
 (3) Amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option, as
described in Treasury Regulation Section 1.415-2(d)(3)(iii). 
 (4) Other amounts which receive special tax benefits, as described in Treasury
Regulation Section 1.415-2(d)(3)(iv). 
 (5) Effective January 1, 2000, amounts paid from any plan of deferred compensation, including but not
limited to the Executive Incentive Premium Exchange Program of Union Pacific Corporation and its Subsidiaries. 
 (6) Amounts paid from the Union Pacific
Corporation 2001 Long-Term Incentive Plan, amounts attributable to any forgiveness of a loan under the Union Pacific Corporation Executive Stock Purchase Incentive Plan and any other amount payable for services performed or performance achieved for
a period longer than one Plan Year. 
 “Disability Retirement Date” means for purposes of this Appendix, the first date prior to the earlier
of Overnite Participant’s Normal Retirement Date or July 1, 2006 on which he has suffered a Total Disability and he has had a termination of employment due to such Total Disability; provided, however, that an Overnite Participant shall not
have a Disability Retirement Date for purposes of this Appendix unless, at the time his Total Disability occurs, he is an Active Participant and has completed 10 or more Years of Vesting Service. 
 “Disabled Participant” means a UPS Freight/Overnite Participant who has a Total Disability. 
 “Overnite Employee” means (a) when used with reference to any Plan Year before 2006, a “covered employee” as defined in Section 2.16
of the Overnite Plan and (b) when used with reference to any Plan Year beginning on or after January 1, 2006, an Employee (as defined in the main text of the Plan, without regard to the second paragraph of such definition) employed by
Overnite or UPS Ground Freight, Inc. (“UPS Freight”) who has an Hour of Service with Overnite or UPS Freight on or after January 1, 2006 and who is not a participant in or covered under any other qualified defined benefit plan to
which Overnite currently makes contributions on his behalf. 
 “Overnite Participant” means depending on the context, an Overnite Employee
who was a participant in the Overnite Plan or has satisfied the participation requirements of Article II of the main text of the Plan. 
 “Total
Disability” or “Totally Disabled” means a disability due to bodily injury or physical or mental disease which renders an UPS Freight /Overnite Participant eligible for disability benefits under the federal Social Security Act.

  

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 “Year of Vesting Service” means the sum of: 
 (a) each full year of “vesting service” completed on or before December 31, 2005, other than service that is disregarded under
Section 9.02 of the Overnite Plan; and 
 (b) for each Overnite Participant who completed at least one “hour of service”
during his “computation period” for “vesting service” beginning in 2005, one year of service unless such service would be disregarded under Section 6.2 of the main text of the Plan. 
 AMOUNT AND PAYMENT OF BENEFITS 
 Minimum
Accrued Benefit. Notwithstanding any provision in this Appendix or the main text of Plan to the contrary, but taking into account the break in service rules in Article IX of the Overnite Plan: 
 (a) the Accrued Benefit of a Grandfathered Overnite Participant who was an Active Participant on December 31, 1988 shall not be less than his
accrued benefit, determined as of December 31, 1988 under the terms of the Overnite Plan as in effect through December 31, 1988; 
 (b) the Accrued Benefit of a Grandfathered Overnite Participant who was an Active Participant on December 31, 1993 shall not be less than his accrued benefit, determined as of December 31, 1993 under the terms of the Overnite Plan
as in effect through December 31, 1993; and 
 (c) the Accrued Benefit of a Grandfathered Overnite Participant shall not be less than
his “accrued benefit” determined as of December 31, 2005 under the terms of the Overnite Plan as if he had had a termination of employment on such date. 
 Benefit Offset The Overnite Plan required the benefit payable from such plan be offset by any benefit payable from another qualified defined benefit plan if the same service performed by the Participant is
recognized as “benefit service” in both plans. If such benefit offset has been communicated to an affected Participant prior to the merger of the Overnite Plan into this Plan, the amount of the offset shall remain as calculated under the
Overnite Plan. If the benefit offset amount has not been communicated to the Participant, the offset shall be calculated as determined in the Overnite Plan. 
 Optional Lump Sum Form of Benefit Payment. If a Grandfathered Overnite Participant had a Termination of employment with Overnite on or after March 28, 2005 but prior to January 1, 2006, such Grandfathered Overnite
Participant may elect to receive his Accrued Benefit payable under Section 5.4(e) in a cash lump sum as soon as practicable after his termination of employment if the Present Value of such benefit is at least $1,000 but does not exceed $5,000.

 Repayment of Lump Sum Distribution. An individual who received a lump sum distribution of his entire accrued benefit from the Overnite Plan
prior to January 1, 2006 and is re-employed by 

  

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an Employer Company on or after January 1, 2006 has the right to repay the Trustee the lump sum distribution he received, in accordance with
Section 5.4(f) of the main text of the Plan provided his repayment right has not expired. 
 Disability Retirement Benefit. The Disability
Retirement Benefit described in this Appendix shall apply only to an Overnite Participant who is determined to be Totally Disabled (as defined in this Appendix) as of any date prior to July 1, 2006. The Disability Retirement Benefit described
in Section 5.5 of the main text of the Plan shall apply to any Overnite Participant who is determined to be Totally Disabled (as defined in Article I of the main text of the Plan) as of any date on or after July 1, 2006. 
 (1) Each Overnite Participant who has a Disability Retirement Date shall be entitled to an immediate disability benefit commencing on the first day of
the month coincident with or next following his Disability Retirement Date and ending on the date he ceases to be a Disabled Participant. Except to the extent the Disabled Participant is eligible for and elects to receive an Early Retirement Benefit
in the interim, no Disability Retirement Benefit shall be paid to a Disabled Participant under this Appendix pending determination of the Total Disability by the Social Security Administration; provided, however, that the first payment made to a
Disabled Participant under this Appendix following such determination of Total Disability shall include all amounts due the Disabled Participant for the period between the Disability Retirement Date and the date of the first payment. 
 (2) A Disabled Participant shall cease to be such if and when: 
 (i) he reaches Normal Retirement Date; 
 (ii) he ceases to suffer from Total Disability; or 
 (iii) he dies. 
 When a Disabled Participant ceases to be such his current Disability Retirement Benefit (including any survivor benefit attributable to the elected form of payment)
shall end, and (i) if he ceases to be a Disabled Participant because he ceases to suffer from a Total Disability prior to his Normal Retirement Date, he shall be entitled to a benefit under the provisions of the main text of the Plan or this
Appendix, applied on the basis of his termination of employment due to his Total Disability and determined using his Final Average Compensation and actual years of Benefit Service as of such separation date, (ii) if he ceases to be a Disabled
Participant on his Normal Retirement Date, he shall be entitled to the benefit described in Section (4) below, or (iii) if he ceases to be a Disabled Participant due to his death, death benefits shall be payable to his surviving Spouse or
Domestic Partner, the monthly periodic payments under which shall equal the amount which would be payable under the survivor benefit portion of the qualified joint and survivor annuity (as defined in the Overnite Plan), if the Overnite Participant
had: 
 (i) a termination of employment on the date of his death (and did not thereafter return to service) or on the date of his actual
termination of employment, if earlier; 
  

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 (ii) survived and retired with an immediate qualified joint and survivor annuity on the Annuity Starting
Date elected by the Spouse, and 
 (iii) died the following day. 
 (3) The immediate Disability Retirement Benefit payable to a Disabled Participant under this Appendix shall be an annual benefit, payable monthly in a Single Life Only Annuity equal to the Participant’s Accrued
Benefit determined using his Final Average Compensation as of his Disability Retirement Date and the number of years of Benefit Service (to a maximum of 30 years) the Participant would have had had he remained an Employee of an Employer Company
until his Normal Retirement Date, without reduction for early commencement. Alternatively, a Disabled Participant may elect in accordance with the procedures in Section 5.4(b) to have his Disability Retirement Benefit paid in a Qualified Joint
and Survivor Annuity or in a Joint and 50% Survivor Annuity that is the Actuarial Equivalent of the Single Life Only Annuity. 
 (4) A Disabled Participant
who ceases to be such solely because he has reached his Normal Retirement Date shall be entitled to receive his Accrued Benefit determined using his Final Average Compensation as of his Disability Retirement Date and the number of years of Benefit
Service (to a maximum of 30 years) the Participant would have had had he remained an Employee of an Employer Company until his Normal Retirement Date. 
  

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 UPS RETIREMENT PLAN 
 APPENDIX K 
 MOTOR CARGO SUPPLEMENTAL BENEFIT SCHEDULE 
 EFFECTIVE JANUARY 1, 2006 
 The
provisions of this Appendix will apply only to Grandfathered Motor Cargo Participants and certain UPS Freight/Motor Cargo Participants. References to Articles and Sections are to Articles and Sections of this Appendix unless otherwise
expressly indicated. 
 DEFINITIONS 
 Wherever used herein or in the main text of the Plan with respect to a Motor Cargo Employee, the following capitalized terms shall have the meaning set forth below unless otherwise clearly required by the context. If
a capitalized term used in this Appendix or in the main text of the Plan, is not defined herein it will have the same meaning assigned to such term in the main text of the Plan. 
 DEFINITIONS 
 Wherever used herein or in the main text of the Plan with respect to a
Motor Cargo Employee, the following capitalized terms shall have the meaning set forth below unless otherwise clearly required by the context. If a capitalized term used in this Appendix or in the main text of the Plan is not defined herein, it will
have the same meaning assigned to such term in the main text of the Plan. 
 “Disabled Participant” means a UPS Freight/Motor Cargo
Participant who terminated employment with all Employer Companies and Related Employers due to Total Disability. 
 “Benefit Service” as
defined in the main text of the Plan shall include each “year of service” for benefit accrual purposes completed under the Motor Cargo Plan as of December 31, 2005. 
 “Hour of Service” means for Plan Years beginning before 2006, an “hour of service” as described in Section 1.27 of the Motor Cargo Plan. 
 “Motor Cargo Plan” means the Pension Plan for Employees of Motor Cargo as in effect on December 31, 2005. 
 “Total Disability” or “Totally Disabled” means a disability due to bodily injury or physical or mental disease which renders a Motor
Cargo Participant eligible for disability benefits under the federal Social Security Act. 
 “Year of Vesting Service” includes each full
“year of service” (as defined in § 8.06 of the Motor Cargo Plan) completed on or before December 31, 2005, other than service that is disregarded under Section 8.08 of the Motor Cargo Plan. 
  

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 AMOUNT AND PAYMENT OF BENEFITS 
 Commencement at Normal Retirement Age. A Grandfathered Motor Cargo Participant who has attained Normal Retirement Age may elect to commence payment of his Accrued
Benefit even if he has not terminated employment with all Employer Companies and Related Employers. If a Grandfathered Motor Cargo Participant continues to work past the date benefits commence under this Section, the benefit shall be adjusted
annually on or before April 1 following the date benefit commenced to reflect the additional benefits, if any, accrued in the immediately preceding Plan Year. 
 Optional Lump Sum Payment. A Motor Cargo Participant who terminated employment with Motor Cargo on or after March 28, 2005 but prior to January 1, 2006 may elect to receive his Accrued Benefit in a cash lump sum as soon as
practicable after his or termination of employment if the Present Value of such benefit is at least $1,000 but does not exceed $5,000. If a Motor Cargo Participant’s (other than a Grandfathered Motor Cargo Participant’s) benefit is cashed
out pursuant to this Section 5.4(e) or Section 6.1, service associated with such cash-out shall be disregarded for purposes of the Plan; provided, however, that such service shall be counted in determining the Employee’s Year of
Vesting Service and years of Benefit Service if, upon reemployment, the distribution is repaid by the Motor Cargo Employee to the Trustees in accordance with Section 5.4(f) of the main text of the Plan. 
 Disability Retirement Benefit. The Disability Retirement Benefit described in this Appendix shall apply only to a UPS Freight/Motor Cargo Participant who is
determined to be Totally Disabled (as defined in this Appendix) as of any date prior to July 1, 2006. The Disability Retirement Benefit described in Section 5.5 of the main text of the Plan shall apply to any Motor Cargo Participant who is
determined to be Totally Disabled (as defined in Article I of the main text of the Plan) as of any date on or after July 1, 2006. 
 Each Motor Cargo Participant who has completed at least 5 Years of Service and has a Total Disability before age 55 shall be entitled to an immediate Disability Retirement Benefit equal to 55% of the UPS Freight/Motor Cargo
Participant’s vested Accrued Benefit commencing on the first day of the month coincident with or next following his Total Disability and ending on the date he ceases to be a Disabled Participant. The Disability Retirement Benefit shall be paid
in a Single Life Only. 
 A Disabled Participant shall cease to be such if and when: 
 (i) he reaches Normal Retirement Age; 
 (ii)
he ceases to suffer from Total Disability; or 
 (iii) he dies. 
 The Trustee may require a Motor Cargo Participant to submit evidence of his continued eligibility for a Disability Retirement Benefit on a semi-annual basis. In the event a Disabled 

  

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Participant refuses or fails to submit such evidence of continued disability, the Trustees will discontinue the disability benefit payments until the UPS
Freight/Motor Cargo Participant does submit satisfactory evidence of his continued disability. No Disability Retirement Benefit shall be paid under this Appendix pending a determination of Total Disability by the Social Security Administration.

 Minimum Benefit. Notwithstanding any other provision in this Appendix or the main text of the Plan, the Accrued Benefit of a Grandfathered Motor
Cargo Participant who completed at least one “hour of service” (as defined in § 1.27 of the Motor Cargo Plan) on or after January 1, 1994 and prior to January 1, 2006, but who terminates employment before he is vested
in accordance with Article VI, will be $25. If a Motor Cargo Participant is eligible for a minimum benefit under this Appendix, such benefit shall be paid from the Plan as soon as administratively possible. 
 If the minimum benefit is not claimed within 6 months after the Grandfathered Motor Cargo Participant is notified of the minimum benefit by either certified or
registered mail at his last known address, the minimum benefit will be forfeited. 
 VESTING 
 Each Grandfathered Motor Cargo Participant shall be fully vested in his Accrued Benefit upon: 
 (a) attainment of his Normal Retirement Age; 
 (b) completion of 5 Years of Service; or 
 (c) his termination of employment due to death. 
  

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 UPS RETIREMENT PLAN 
 APPENDIX L 
 SPECIAL ENHANCED BENEFIT FOR AVIATION TECHNOLOGIES PARTICIPANTS 
 General. Notwithstanding any other provision in this Plan, the provisions in this Appendix shall apply to the terms of the participation of any Aviation
Technologies Participants to the extent that such provisions are different from or supplement the provisions otherwise set forth in this Plan. 
 Definitions. 
 “Aviation Technologies Participants” means each Participant who at the close of business on the
Aviation Technologies’ Closing Date was an employee of UPS Aviation Technologies, Inc., (including those who are on leave, disability or other absence from active employment), was at least age 50 and had completed at least 15 Years of Service.

 “Aviation Technologies’ Closing Date” means August 22, 2003 which was the Closing Date as defined in Section 2.3
of that certain Stock Purchase Agreement by and between United Parcel Service of America and Garmin International, Inc., dated as of July 24, 2003. 
 Special Early Commencement Factor for Aviation Technologies Participants. The early commencement reduction factor applicable to Aviation Technologies Participants under Section 5.2(b) shall be determined by substituting
“one-quarter of one percent (0.25%)” wherever “one-half of one percent” (0.5%) appears in the text. 
 Enhanced Retiree Medical for
Aviation Technologies Participants. For purposes of construing Article XII: 
 Retired Participant. The term “Retired
Participant” shall include each Aviation Technologies Participant with at least one Year of Service as a Participant in this Plan (regardless of whether such Participant retired as an Employee and was thereupon immediately eligible to receive
an Early or Normal Retirement Benefit hereunder). 
 Commencement of Benefits. Medical Benefits shall begin to be paid with respect to
claims incurred by Retired Participants who are Aviation Technologies Participants, or their Covered Dependants, when such Retired Participants are no longer eligible for coverage under the UPS Insurance Plan (or a successor plan) or another group
medical plan sponsored and maintained by an employer for active employees and their covered dependants. Notwithstanding any other provision of this Article, if a Retired Participant, or his Covered Dependent, is eligible for Medical Benefits under
this Article and also eligible for medical benefits under another group medical insurance plan sponsored and maintained by an Employer Company for active employees and their covered dependents (for example, the UPS Insurance Plan) (“Alternate
Plan”), then no Medical Benefits under this Article shall be paid. Payment of Medical Benefits under this Article shall commence on the day following the day eligibility for benefits under the Alternate Plan ceases. 
  

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 UPS Aviation Technologies, Inc. Employees. Notwithstanding any contrary Plan provision, a Participant who is
employed by UPS Aviation Technologies, Inc. on December 31, 2000 and who was a participant in the UPS Pension Plan on that date shall receive a benefit from this Plan for his years of Benefit Service with UPS Aviation Technologies equal to the
greater of the benefit described in Section 5.2 or the benefit such Participant would have earned under the UPS Pension Plan based upon the formula in effect under the Pension Plan immediately before such Participant became covered under this
Plan. 
  

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