Document:

exh10-6.htm

    Exhibit 10.6

    

    

    

    

    December
2, 2009

    

    Don
Dancer

    101 N.
Sepulveda Blvd.

    El
Segundo, CA 90245

    

    

    SEVERANCE AND GENERAL
RELEASE LETTER AGREEMENT

    

    Dear
Don:

    

    This
letter will confirm (i) receipt of your notice of termination dated December 2,
2009 and (ii) IR’s agreement that the Employment Agreement Amendment dated
February 17, 2009 between you and IR (the “EAA”) shall terminate as of December
31, 2009 (“Employment Termination Date”).

    

    This
Agreement is made and entered into by and between Don Dancer (sometimes
hereinafter referred to as “Employee”, “You”), on the one hand, and International Rectifier
Corporation on behalf of itself and its divisions, facilities,
subsidiaries and affiliated entities, successors and assigns, or any of its or
their current respective officers, directors, trustees, agents, employees,
attorneys, insurers, representatives, and each of them (hereinafter the
“Company”, “IR”, or “Releasees”), on the other hand.

    

    All
capitalized terms herein shall have the same meanings as those in the EAA
(including those agreements referred to and/or incorporated therein by
reference) unless specifically defined herein.

    

    This
Severance and General Release Letter Agreement (the “Agreement”) also shall,
once fully executed, constitute the release contemplated in section (3) of the
EAA and 1(p) of the Separation Agreement, as amended.  In exchange for
and contingent upon your signing and returning this Agreement, including the
release of claims incorporated herein in Paragraph 8 (and not revoking this
Agreement within the revocation period), IR covenants and agrees as
follows:

    

    

    
      	
              1.  

            	
              Severance
      Payment:  You will receive the Special Severance Payment
      described in and subject to Sections (3)(i) and (4) of the EAA,
      specifically one times your annual base salary as in effect on December
      31, 2008, and your Target Bonus then in effect (0.75 times such annual
      base salary).

            

    

     
 

    
      	
              2.  

            	
              Benefits/Insurance/Outplacement
      Support: 

            

    

    

    
      	
              a.  

            	
              You
      will be eligible to continue under the Company’s health and dental
      insurance programs for a period of eighteen (18) months from the
      Employment Termination Date, as contemplated by Section (3)(ii) of the EAA
      and Section 2(c) of the Separation Agreement, after which time you will be
      eligible to continue your medical and dental insurance through
      COBRA. 

            

    

    
      	
              b.  

            	
              You
      also will be eligible to convert your group life insurance coverage to an
      individual policy at your sole
expense. 

            

    

    
      	
              c.  

            	
              You
      will also be entitled to job outplacement services for you (at Company
      expense and not to exceed $50,000 in the aggregate) until the earlier of
      (i) six (6) months after your employment termination date or (ii) the date
      on which you accept an offer of new employment.  IR
      shall select the outplacement service provider and provide any
      compensation benefit hereunder directly with and to the service
      provider

            

    

    
 

    
      	
              3.  

            	
              Stock
      Options/RSUs:

            

    

     
 

    
      	
              a.  

            	
              Upon
      your Employment Termination Date, all of your then-outstanding stock
      options and restricted stock units (RSUs) shall become fully
      vested.

            

    

    
      	
              b.  

            	
              You
      will be eligible to exercise any vested stock options and RSUs you have
      been granted for twelve
      (12) months after your termination date, as provided by Section
      (3)(iii) of  the EAA.

            

    

    
      	
              c.  

            	
              Any
      eligibility to exercise stock options is subject to the terms and
      conditions of the applicable plan documents and option agreements,
      including without limitation, the Company’s policies with respect to
      compliance with laws against insider trading and any actions taken by the
      Company to suspend the execution of option exercises during periods in
      which public financial statements are not current.  Any vested stock
      options shall be subject to all other terms and conditions of the
      plan and other documents under which the options were originally granted,
      including, without limitation, early termination upon the first to occur
      of (i) the maximum year term of such options upon grant or (ii) a change
      of control of the Company, in each case on the terms provided for under
      the applicable option plan and option
agreement.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              4.  

            	
               Confidentiality/Inventions:

            

    

    
      	
              a.  

            	
              You
      acknowledge that you are still bound by any Inventions and Confidential
      Information Agreement (“Confidentiality Agreement”) that you signed during
      or shortly before you began your employment with the
    Company.

            

    

    
      	
              b.  

            	
              You
      acknowledge that by reason of your position with the Company you have been
      given access to lists of customers, prices, engineering plans, business
      plans, strategic plans, technology, roadmaps, developments, inventions,
      and similar confidential or proprietary materials or information
      respecting the Company’s business, affairs, or
  plans.

            

    

    
      	
              c.  

            	
              You
      represent warrant that

            

    

    
      	
              i.  

            	
              you
      have held all such information and materials confidential and that you
      will continue to do so.

            

    

    
      	
              ii.  

            	
              you
      will not use such information, materials, and relationships for any
      business (which  term herein includes a partnership, firm,
      corporation or any other entity) at any future time without the prior
      written consent of the Company’s General Counsel or
    designee.

            

    

    

    
      	
              5.  

            	
              Indemnity
      Agreement Obligations; Continuation of Indemnification; Access to
      Materials; Cooperation:

            

    

    
      	
              a.  

            	
              The
      terms of the existing Indemnification Agreement dated September 8, 2008
      between you and the Company (the “Indemnification Agreement”) shall remain
      in full force and effect, notwithstanding any provision herein to the
      contrary.

            

    

    
      	
              b.  

            	
              The
      parties’ respective obligations in the Indemnification Agreement are not
      altered in any way by this agreement nor are such provisions subject to
      the releases set forth below, unless expressly indicated in this
      Agreement.

            

    

    
 

    
      	
              c.  

            	
              The
      Company also agrees to provide you with reasonable access to materials
      necessary for representation of you in pending litigation and regulatory
      matters that may or do involve You, directly or indirectly, including
      continuing You and your attorneys’ access to hardcopy documents and the
      electronic database to which you have previously been granted access,
      including any documents in that database to which you have previously had
      access, and company documents in electronic form on the database to the
      extent permitted by existing protective orders– all during the pendency of
      such matters only.

            

    

    

    
      	
              d.  

            	
              In
      consideration of the Company commitments in this paragraph, You agree to
      reasonably cooperate with the Company and its counsel in any ongoing
      litigation or regulatory matters with respect to which you have knowledge,
      including investigation by the Company or any of its representatives
      related to the activities of employees or other persons or entities
      affiliated with the Company.

            

    

     
 

    
      	
              6.  

            	
               No Other
      Benefits:  You acknowledge and agree that no other
      monetary payments shall be made to you in consideration for entering into
      this Agreement apart from those set forth
  herein.

            

    

    

    
      	
              7.  

            	
              Sole Agreement/Amendment/No
      Inducements/No Admission of Liability: Except for the
      Confidentiality Agreement and the Indemnification Agreement referred to
      herein, which shall continue in full force and effect, this Agreement
      constitutes and contains the entire agreement and understanding concerning
      the subject matter referred herein, and supersedes and replaces all prior
      negotiations and all proposed agreements, promises, covenants, guarantees,
      representations, whether written or oral, express or implied, concerning
      any of the subject matters hereof.  This Agreement can only be
      modified by a later writing signed by you and the Company.  You
      acknowledge and agree that no promises or representations have been made
      to you as an inducement to sign this Agreement other than those expressly
      set forth in writing in this Agreement.  Nothing in this
      Agreement is, or ever should be deemed to be, an admission by you or the
      Company of any liability, fault, wrongdoing or mistake of any
      kind.  It is contemplated that two duplicate original copies of
      this letter will be executed by each of the parties
      hereto.  Each of the duplicated originals and any photocopies or
      facsimile copies thereof shall be deemed to be an original and the same
      document for all purposes.

            

    

    

    
      	
              8.  

            	
              Release:  Other
      than the rights and obligations established by paragraphs 1-7 above, which
      survive the release granted by the Employee, Employee hereby expressly
      releases and waives any and all claims, liabilities, demands, damages,
      penalties, debts, accounts, obligations, actions, grievances, and causes
      of action (“Claims”), whether now known or unknown, suspected or
      unsuspected, whether in law, in equity or in arbitration, of any kind or
      nature whatsoever, which Employee now owns or holds or at any time
      heretofore owned or held against IR and/or the Releasees referred to in
      the first paragraph of this Agreement, including, but not limited to, any
      Claims arising out of or relating in any way to Employee’s employment at
      IR and the termination thereof.  Without limiting the foregoing,
      Employee hereby acknowledges and agrees that the Claims released by this
      Agreement include, but are not limited to, any and all claims which arise
      or could arise under Title VII of the Civil Rights Act of 1964, the Age
      Discrimination in Employment Act of 1967, the Federal Worker Adjustment
      and Retraining Notification Act (or any similar state, local or foreign
      law), the California Fair Employment and Housing Act, California statutory
      or common law, the Orders of the California Industrial Welfare Commission
      regulating wages, hours, and working conditions, and federal statutory
      law, or any Claim for severance pay, bonus, sick leave, disability,
      holiday pay, vacation pay, life insurance, health or medical insurance or
      any other fringe benefit. Nothing in this Agreement shall limit in any way
      Employee’s right under California Workers’ Compensation laws to file or
      pursue any workers’ compensation claim.  This release shall not
      apply to any claims that may not be waived as a matter of applicable
      law.

            

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
              a.  

            	
              As
      part of this general release, Employee expressly releases, waives and
      relinquishes all rights under Section 1542 of the California Civil Code
      which states:

            

    

    

    “A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS FAVOR AT THE TIME EXECUTING THE RELEASE, WHICH IF KNOWN
BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR.”

    

    
      	
               
      

            	
              b.

            	
              Employee
      acknowledges that he may later discover facts in addition to or different
      from those which Employee now knows, or believes to be true, with respect
      to any of the subject matters of this Agreement, but that it is
      nevertheless Employee’s intention to settle and release any and all Claims
      released herein, excepting any rights that exist pursuant to paragraphs
      1-7 of this Agreement above.

            

    

    

    
      	
               
      

            	
              c.

            	
              Employee
      warrants and represents that there is not now pending any action;
      complaint, petition, charge, grievance, or any other form of
      administrative, legal or arbitral proceeding by Employee against the
      Company and further warrants and represents that no such proceeding of any
      kind shall be instituted by or on Employee’s behalf based upon any and all
      Claims released herein.

            

    

    

    
      	
              d.  

            	
              Employee
      expressly acknowledges, understands and agrees that this Agreement
      includes a waiver and release of all claims which employee has or may have
      under Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C.
      §621, et
      seq. (“ADEA”).  The following terms and conditions apply
      to and are part of the waiver and release of ADEA claims under this
      Agreement:

            

    

    

    
      	
              i.  

            	
              Employee
      is advised to consult an attorney before signing this
      Agreement;

            

    

    
      	
              ii.  

            	
              Employee
      is granted fifty (50) days after he/she is presented with this Agreement
      to decide whether or not to sign this
Agreement;

            

    

    
      	
              iii.  

            	
              Employee
      will have the right to revoke the waiver and release of claims under the
      ADEA within seven (7) days of signing this Agreement, and this Agreement
      shall not become effective and enforceable until that revocation period
      has expired;

            

    

    
      	
              iv.  

            	
              Employee
      hereby acknowledges and agrees that he/she is knowingly and voluntarily
      waiving and releasing Employee’s rights and claims in exchange for
      consideration (something of value) in addition to anything of value to
      which he/she is already entitled;

            

    

    
      	
              v.  

            	
              Employee
      has been informed in writing as to any class, unit, or groups of
      individuals who are eligible for similar severance, the eligibility
      factors for the severance offer and the time limits of that offer. The
      group of employees considered eligible, the job titles and ages of all
      employees considered eligible or selected, and the ages of all employees
      in the same job classification or organizational unit who are not
      considered eligible or selected, if any, is described in Exhibit “A”
      hereto; and

            

    

    
      	
              vi.  

            	
              Nothing
      in this Agreement prevents or precludes Employee from challenging or
      seeking a determination in good faith of the validity of this waiver under
      the ADEA, nor does it impose any condition precedent, penalties or costs
      from doing so, unless specifically authorized by federal
    law.

            

    

     

    
      
        
        

      

    

    
      	
              9.  

            	
              Release by
      IR:  Except for those obligations created by or arising
      out of this Agreement, and except as provided below, IR hereby
      acknowledges full and complete satisfaction of and releases and
      discharges, and covenants not to sue, Employee from and with respect to
      any and all claims, agreements, obligations, losses, damages, injuries,
      demands and causes of action, known or unknown, suspected or unsuspected,
      arising out of or in any way related to Employee’s employment relationship
      with or termination from IR, which IR now owns or holds or has at any time
      heretofore owned or held against Employee, provided, however, that such
      release shall not include claims against Employee which arise out of facts
      which constitute willful misconduct, a willful breach of fiduciary duty, a
      crime under any federal, state, or local law, ordinance, or regulation,
      which are based upon facts which give rise to a recovery by IR under any
      applicable policy of insurance as a result of actions or omissions by
      Employee and as to which the insurer has a right of subrogation as against
      Employee, or which would give rise to a recoupment action under the
      Indemnification Agreement or Delaware
law.

            

    

    

    
      	
              10.  

            	
              Arbitration:

            

    

    
      	
              a.  

            	
              Any
      dispute or controversy between you on the one hand, and the Company (or
      any other Releasee), on the other hand, in any way arising out of, related
      to, or connected with this Agreement or subject matter thereof, or
      otherwise in any way arising out of, related to, or connected with your
      employment with the Company or the termination of  your
      employment with the Company shall be resolved through final binding
      arbitration in Los Angeles, California before a sole arbitrator selected
      from Judicial Arbitration and Mediation Services, Inc. or its successor
      (“JAMS”), or if JAMS is no longer able to supply the arbitrator, such
      arbitrator shall be selected from the American Arbitration
      Association.

            

    

    

    
      	
              b.  

            	
              Final
      resolution of any dispute through arbitration may include any remedy or
      relief which the Arbitrator deems just and equitable, including any and
      all remedies provided by applicable state or federal
    statutes.

            

    

    

    
      	
              c.  

            	
              At
      the conclusion of the arbitration, the Arbitrator shall issue a written
      decision that sets forth the essential findings and conclusions upon which
      the Arbitrator’s award or decision is
based.

            

    

    

    
      	
              d.  

            	
              Any
      award or relief granted by the Arbitrator hereunder shall be final and
      binding on the parties hereto and may be enforced by any court of
      competent jurisdiction.

            

    

    

    
      	
              e.  

            	
              The
      parties agree that the Company shall be responsible for payment of all
      costs unique to arbitration, including the Arbitrator’s
    fee.

            

    

    

    
      	
              11.  

            	
              Severability/Choice of
      Law:  Should any provision of this Agreement be declared
      or be determined by any court to be illegal or invalid, the validity of
      the remaining parts, terms or provisions shall not be affected thereby and
      said illegal or invalid part, term or provision shall be deemed not to be
      part of this Agreement.  The terms of this Agreement shall be
      governed by, and construed in accordance with the laws of the State of
      California without regard to conflicts of laws
  principles.

            

    
      	
              12.  

            	
              Misc./WARN:  Any
      payment of severance or benefits under this Agreement is intended to
      satisfy, where applicable, the Company’s obligations, if any, under the
      Federal Worker Adjustment and Retraining Notification Act (or any similar
      state, local or foreign law) (collectively, “WARN”). As such, should the
      Company be deemed to hold any obligations to you under WARN, the severance
      or benefits paid under this Agreement shall be deemed reduced on a
      dollar-for-dollar basis by any payments required to be made to you under
      WARN (but, in no case shall the payments under this Agreement be reduced
      to less than one week of severance pay) and those amounts reduced shall be
      deemed to have been made in lieu of notice under WARN.  This
      will not affect the amount of the payments you receive from the
      Company.

            

    

    

    
      	
              13.  

            	
              Binding
      Effects:  This Agreement shall be binding upon and inure
      to the benefit of Employee and the Company, its successors and
      assigns.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    If you
understand and agree to the terms set forth in this letter, please sign and date
the two duplicate originals where indicated below, and return one of them to
me.  The other original is for your records.

    
 

    Further,
you acknowledge and agree that you carefully have read and fully understand this
Agreement, and that you have had full opportunity to seek advice from
independent counsel of your own choice about any questions, concerns or issues
you may have in connection with this Agreement.

    

    

    INTERNATIONAL
RECTIFIER CORPORATION

    

    

    

    Rick
Merritt

    VP Human
Resources

    

    

    

    I
have read and understand this Agreement, and I consent to all its terms and
provisions.

    

    

    Dated:                      _12/18/09_________                                                      ___________________________________________

    Don Dancer

    

    Dated:                      __12/30/09_                                                  By:____________________________________________

    Witnesscert_10-3.htm

    

    

    

    

    
      
        

      

    

    

    

    

    

    

    

    

    

    

    

    

    NEW
JERSEY NATURAL GAS COMPANY

    

    

    Plan
For Retirement Allowances For

    

    Non-Represented
Employees

    

    

    

    Amended
and Restated Effective January 1, 2010

    (Including
Amendments Through January 27, 2010)

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

          
             

          

        

      

    

    

    
      	
              TABLE OF CONTENTS

            
	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	
              Page

            
	 
      	 
      	 
      	 
      
	
              PREAMBLE

            	
              1

            
	 
      	 
      	 
      	 
      
	
              SECTION
      1.DEFINITIONS

            	
              2

            
	 
      	 
      	 
      	 
      
	
              SECTION
      2.PARTICIPATION

            	
              7

            
	 
      	 
      	 
      	 
      
	 
      	
              2.1

            	
              ELIGIBILITY
      REQUIREMENTS

            	
              7

            
	 
      	
              2.2

            	
              CONTINUATION
      OF PARTICIPATION

            	
              7

            
	 
      	
              2.3

            	
              CONTRIBUTORY
      PARTICIPATION REQUIREMENTS

            	
              7

            
	 
      	
              2.4

            	
              TRANSFER
      TO NON-COVERED STATUS

            	
              7

            
	 
      	
              2.5

            	
              REEMPLOYMENT
      ON OR AFTER OCTOBER 1, 2009

            	
              7

            
	 
      	
              2.6

            	
              TRANSFERS
      ON OR AFTER OCTOBER 1, 2009

            	
              7

            
	 
      	 
      	 
      	 
      
	
              SECTION
      3.RETIREMENT DATE

            	
              8

            
	 
      	 
      	 
      	 
      
	 
      	
              3.1

            	
              NORMAL
      RETIREMENT DATE

            	
              8

            
	 
      	
              3.2

            	
              EARLY
      RETIREMENT DATE

            	
              8

            
	 
      	
              3.3

            	
              DISABILITY
      RETIREMENT DATE

            	
              8

            
	 
      	
              3.4

            	
              POSTPONED
      RETIREMENT DATE

            	
              8

            
	 
      	
              3.5

            	
              REEMPLOYMENT
      OF A PARTICIPANT CURRENTLY IN RECEIPT OF A RETIREMENT
      ALLOWANCE

            	
              8

            
	 
      	 
      	 
      	 
      
	
              SECTION
      4.AMOUNT OF RETIREMENT ALLOWANCE

            	
              10

            
	 
      	 
      	 
      	 
      
	 
      	
              4.1

            	
              NORMAL
      RETIREMENT ALLOWANCE

            	
              10

            
	 
      	
              4.2

            	
              BASIC
      ALLOWANCE

            	
              10

            
	 
      	
              4.3

            	
              ADDITIONAL
      ALLOWANCE

            	
              10

            
	 
      	
              4.4

            	
              MAXIMUM
      BENEFIT

            	
              10

            
	 
      	
              4.5

            	
              EARLY
      RETIREMENT ALLOWANCE

            	
              11

            
	 
      	
              4.6

            	
              DISABILITY
      RETIREMENT ALLOWANCE

            	
              12

            
	 
      	
              4.7

            	
              POSTPONED
      RETIREMENT ALLOWANCE

            	
              12

            
	 
      	
              4.8

            	
              SPECIAL
      PROVISION FOR PARTICIPANTS WHO WERE HIRED BEFORE DECEMBER 8,
      1974

            	
              13

            
	 
      	
              4.9

            	
              NON-DUPLICATION
      OF BENEFITS

            	
              13

            
	 
      	
              4.10

            	
              INCREASED
      BENEFITS FOR RETIREES

            	
              13

            
	 
      	
              4.11

            	
              SECTION
      401(A)(17) EMPLOYEES

            	
              13

            
	 
      	
              4.12

            	
              DELAYED
      COMMENCEMENT OF RETIREMENT ALLOWANCE

            	
              14

            
	 
      	 
      	 
      	 
      
	
              SECTION
      5.CONTRIBUTIONS

            	
              15

            
	 
      	 
      	 
      	 
      
	 
      	
              5.1

            	
              EMPLOYEE
      CONTRIBUTIONS

            	
              15

            
	 
      	
              5.2

            	
              WITHDRAWAL
      OF EMPLOYEE CONTRIBUTIONS

            	
              15

            
	 
      	
              5.3

            	
              COMPANY
      CONTRIBUTIONS

            	
              15

            
	 
      	
              5.4

            	
              ADMINISTRATION
      EXPENSE

            	
              15

            
	 
      	
              5.5

            	
              FORFEITURES

            	
              15

            
	 
      	
              5.6

            	
              REFUND
      OF EMPLOYER CONTRIBUTIONS

            	
              15

            
	 
      	 
      	 
      	 
      
	
              SECTION
      6.IN EVENT OF DEATH

            	
              16

            
	 
      	 
      	 
      	 
      
	 
      	
              6.1

            	
              PRIOR
      TO RETIREMENT

            	
              16

            
	 
      	
              6.2

            	
              AFTER
      RETIREMENT

            	
              16

            
	 
      	
              6.3

            	
              DESIGNATION
      OF BENEFICIARY

            	
              16

            
	 
      	 
      	 
      	 
      

    

    

    

    

    
      
        
          
            i

          

           

        

        
           

          
            

          

        

        
           

          
            TABLE OF
CONTENTS

            (continued)

             Page

            

          

        

      

    

     

    
      	
              SECTION
      7.IN EVENT OF TERMINATION OF EMPLOYMENT

            	
              17

            
	 
      	 
      	 
      	 
      
	 
      	
              7.1

            	
              NON-VESTED
      PARTICIPANTS

            	
              17

            
	 
      	
              7.2

            	
              VESTED
      PARTICIPANTS

            	
              17

            
	 
      	
              7.3

            	
              REEMPLOYMENT
      PRIOR TO HAVING A BREAK IN SERVICE

            	
              17

            
	 
      	
              7.4

            	
              REEMPLOYMENT
      OF A VESTED PARTICIPANT OR FORMER VESTED PARTICIPANT AFTER HAVING A BREAK
      IN SERVICE

            	
              17

            
	 
      	
              7.5

            	
              REEMPLOYMENT
      OF A NON-VESTED PARTICIPANT AFTER HAVING A BREAK IN
SERVICE

            	
              18

            
	 
      	
              7.6

            	
              REEMPLOYMENT
      OF A NON-PARTICIPANT AFTER HAVING A BREAK IN SERVICE

            	
              18

            
	 
      	
              7.7

            	
              REEMPLOYMENT
      AND REPAYMENT OF ADDITIONAL ALLOWANCE ACCOUNT

            	
              18

            
	 
      	
              7.8

            	
              AMENDMENT
      OF VESTING SCHEDULE

            	
              18

            
	 
      	 
      	 
      	 
      
	
              SECTION
      8. FORMS OF RETIREMENT ALLOWANCE

            	
              19

            
	 
      	 
      	 
      	 
      
	 
      	
              8.1

            	
              NORMAL
      FORM OF PAYMENT

            	
              19

            
	 
      	
              8.2

            	
              OPTIONAL
      FORMS OF PAYMENT

            	
              19

            
	 
      	
              8.3

            	
              ELECTION
      OF OPTIONAL FORMS OF PAYMENT

            	
              21

            
	 
      	
              8.4

            	
              COMMENCEMENT
      OF PAYMENTS

            	
              22

            
	 
      	
              8.5

            	
              DISTRIBUTION
      LIMITATION

            	
              22

            
	 
      	
              8.6

            	
              DIRECT
      ROLLOVER OF CERTAIN DISTRIBUTIONS

            	
              23

            
	 
      	 
      	 
      	 
      
	
              SECTION
      9.ADMINISTRATION OF THE PLAN

            	
              24

            
	 
      	 
      	 
      	 
      
	 
      	
              9.1

            	
              PLAN
      ADMINISTRATOR

            	
              24

            
	 
      	
              9.2

            	
              BOARD
      OF DIRECTORS

            	
              24

            
	 
      	
              9.3

            	
              APPOINTMENT
      OF THE BENEFIT ADMINISTRATION COMMITTEE

            	
              24

            
	 
      	
              9.4

            	
              COMMITTEE
      MEETINGS, PROCEDURES AND APPOINTMENT OF AGENTS

            	
              24

            
	 
      	
              9.5

            	
              ALLOCATION
      AND DELEGATION OF RESPONSIBILITIES

            	
              24

            
	 
      	
              9.6

            	
              RECORDS
      OF PROCEEDINGS

            	
              25

            
	 
      	
              9.7

            	
              COMPENSATION,
      EXPENSES

            	
              25

            
	 
      	
              9.8

            	
              INFORMATION
      SUPPLIED BY THE COMPANY

            	
              25

            
	 
      	
              9.9

            	
              LIABILITY
      AND INDEMNIFICATION

            	
              25

            
	 
      	
              9.10

            	
              CLAIMS
      FOR BENEFITS

            	
              25

            
	 
      	 
      	 
      	 
      
	
              SECTION
      10.MANAGEMENT OF THE FUNDS

            	
              26

            
	 
      	 
      	 
      	 
      
	 
      	
              10.1

            	
              RETIREMENT
      ALLOWANCE FUND

            	
              26

            
	 
      	
              10.2

            	
              TRUSTEE

            	
              26

            
	 
      	
              10.3

            	
              INVESTMENT
      MANAGER

            	
              26

            
	 
      	
              10.4

            	
              DISBURSEMENT
      OF FUNDS

            	
              26

            
	 
      	
              10.5

            	
              CONTRIBUTOR’S
      ADDITIONAL ALLOWANCE ACCOUNT

            	
              26

            
	 
      	 
      	 
      	 
      
	
              SECTION
      11.AMENDMENT

            	
              27

            
	 
      	 
      	 
      	 
      
	 
      	
              11.1

            	
              RIGHT
      TO AMEND

            	
              27

            
	 
      	
              11.2

            	
              SPECIAL
      PROVISION FOR AMENDMENT OF SECTION 16.3(A)

            	
              27

            
	 
      	 
      	 
      	 
      
	
              SECTION
      12.SUSPENSION AND DISCONTINUANCE

            	
              28

            
	 
      	 
      	 
      	 
      
	 
      	
              12.1

            	
              SUSPENSION
      OF CONTRIBUTIONS

            	
              28

            
	 
      	
              12.2

            	
              DISCONTINUANCE

            	
              28

            
	 
      	
              12.3

            	
              MERGER,
      CONSOLIDATION OR TRANSFER

            	
              28

            
	 
      	 
      	 
      	 
      

    

    

    

    

    
      
        
           

        

        
          ii 

          
            

          

        

        
           

          
            TABLE OF
CONTENTS

            (continued)

             Page

            

          

        

      

    

     

    
      	
              SECTION
      13.MISCELLANEOUS

            	
              29

            
	 
      	 
      	 
      	 
      
	 
      	
              13.1

            	
              UNIFORM
      ADMINISTRATION

            	
              

                29

              

            
	 
      	
              13.2

            	
              PAYMENT
      DUE AN INCOMPETENT

            	
              

                29

              

            
	 
      	
              13.3

            	
              IDENTITY
      OF PAYEE

            	
              

                29

              

            
	 
      	
              13.4

            	
              NON-ALIENATION
      OF BENEFITS

            	
              

                29

              

            
	 
      	
              13.5

            	
              SOURCE
      OF PAYMENTS

            	
              29

            
	 
      	
              13.6

            	
              PLAN
      NOT A CONTRACT OF EMPLOYMENT

            	
              29

            
	 
      	
              13.7

            	
              PAYMENT
      OF RETIREMENT ALLOWANCE:

            	
              29

            
	 
      	
              13.8

            	
              ADOPTION
      OF PLAN BY AFFILIATE

            	
              30

            
	 
      	
              13.9

            	
              LIMITATIONS
      BASED ON THE FUNDED STATUS OF THE PLAN

            	
              30

            
	 
      	
              13.10

            	
              LIMITATIONS
      ON UNPREDICTABLE CONTINGENT EVENT BENEFITS

            	
              30

            
	 
      	 
      	 
      	 
      
	
              SECTION
      14.PRE-TERMINATION RESTRICTIONS

            	
              31

            
	 
      	 
      	 
      	 
      
	 
      	
              14.1

            	
              RESTRICTION
      ON BENEFITS

            	
              31

            
	 
      	 
      	 
      	 
      
	
              SECTION
      15.TOP-HEAVY PROVISIONS

            	
              32

            
	 
      	 
      	 
      	 
      
	
              SECTION
      16.RETIREE MEDICAL ACCOUNT

            	
              33

            
	 
      	 
      	 
      	 
      
	 
      	
              16.1

            	
              CONSTRUCTION

            	
              33

            
	 
      	
              16.2

            	
              ESTABLISHMENT
      OF ACCOUNT:

            	
              33

            
	 
      	
              16.3

            	
              DEFINITIONS

            	
              33

            
	 
      	
              16.4

            	
              COMPANY
      CONTRIBUTION

            	
              33

            
	 
      	
              16.5

            	
              INVESTMENT
      OF CONTRIBUTIONS

            	
              34

            
	 
      	
              16.6

            	
              KEY
      EMPLOYEES

            	
              34

            
	 
      	
              16.7

            	
              FORFEITURES

            	
              34

            
	 
      	
              16.8

            	
              IMPOSSIBILITY
      OF DIVERSION

            	
              34

            
	 
      	
              16.9

            	
              AMENDMENT

            	
              34

            
	 
      	
              16.10

            	
              TERMINATION

            	
              34

            
	 
      	
              16.11

            	
              REVERSION
      OF ASSETS UPON TERMINATION

            	
              34

            

    

    

    

    

    

    

    
      
        
           

        

        
          iii 

          
            

          

        

        
           

        

      

    

    

    PREAMBLE

    

    Effective June 1, 1955 New Jersey
Natural Gas Company established the Plan for Retirement Allowances for its
employees.  The Plan was subsequently amended from time to time
thereafter.  Effective October 1, 1968 the Plan was amended to create
two separate plans covering represented and non-represented employees of the
Company.  This plan for non-represented employees was named the Plan
for Retirement Allowances for Non-Represented Employees (the
“Plan”).  The Plan was further amended effective October 1, 1977,
January 1, 1981, October 1, 1984, December 8, 1986, October 1, 1987 and October
1, 1988.

    

    Effective October 1, 1989 the Plan was
amended and restated.  As so amended, the Plan applied to persons in
the employment of the Company who were or become Participants on or after
October 1, 1989.  Former Employees whose service terminated prior to
October 1, 1989 whether as a result of retirement, death or any other form of
termination of employment and those entitled to benefits under the Plan with
respect to such former Employees were entitled to benefits under the Plan only
to the extent, if any, provided under the Plan as in effect before
October 1, 1989, except as provided in Section 4.10 (Increased Benefits for
Retirees) or as otherwise required by applicable provisions of the Internal
Revenue Code of 1986, as amended (the “Code”), and the regulations
thereunder.

    

    The Plan was further amended January 1,
1993.

    

    Effective October 1, 1993 the Plan was
amended and restated.  Former Employees whose service terminated prior
to October 1, 1993 whether as a result of retirement, death or any other form of
termination of employment and those entitled to benefits under the Plan with
respect to such former Employees shall be entitled to benefits under the Plan
only to the extent, if any, provided under the Plan as in effect before
October 1, 1993 except as provided in Section 4.10 (Increased Benefits for
Retirees) or as otherwise required by applicable provisions of the Code or
regulations thereunder.  The Plan was further amended effective
December 8, 1995.

    

    Effective October 1, 1997, the Plan was
amended and restated to incorporate prior amendments and to conform with the
applicable provisions of the Uniformed Services Employment and Reemployment
Rights Act of 1994, the Retirement Protection Act of 1994, the Small Business
Job Protection Act of 1996, the Taxpayer Relief Act of 1997, and the Community
Renewal Tax Relief Act of 2000, and Internal Revenue Service regulations as of
the dates the provisions of these Acts and regulations are effective with
respect to the Plan.  Prior amendments which have a different
effective date are described in the Plan document.  Former Employees
whose service terminated prior to October 1, 1997 whether as a result of
retirement, death, or any other form of termination of employment and those
entitled to benefits under the Plan with respect to such former Employees shall
be entitled to benefits under the Plan only to the extent, if any, provided
under the Plan as in effect before October 1, 1997, except as otherwise provided
by applicable provisions of the Code or regulations thereunder.

    

    Effective October 1, 2005, the Plan was
amended and restated as set forth herein to incorporate prior amendments and to
conform with the Economic Growth and Tax Relief Reconciliation Act of 2001 and
Internal Revenue Service regulations as of the dates the provisions of this Act
and regulations are effective with respect to the Plan.

    

    Effective January 1, 2008, the Plan was
amended to add a joint and 75% survivor annuity optional form of payment to
conform with the requirements of the Pension Protection Act of
2006.  The Plan was further amended effective March 11, 2009 to (1)
delegate to the Benefits Administration Committee the authority to amend the
Plan at any time provided that such changes do not significantly increase the
cost to the Company and do not materially impact Participants, and (2) expand
the notice and consent period for payment of optional forms of retirement
allowances as permitted under the Pension Protection Act of
2006.  Effective for Limitation Years beginning on or after January 1,
2008. the Plan was amended to conform with the regulations issued under Section
415 of the Code.

     

    Effective October 1, 2009, the Plan was
amended to freeze the Plan by excluding from participation any new Employees and
certain rehired Employees who are hired or rehired on or after that
date.

    

    Effective January 1, 2010, the Plan is
amended and restated to incorporate amendments adopted since the prior
restatement dated October 1, 2005, and to conform with the applicable provisions
of the Pension Protection Act of 2006 (and the Internal Revenue Service
regulations thereunder) and the Heroes Earnings Assistance and Relief Tax Act of
2008, as of the dates the provisions of such Acts and regulations are effective
with respect to the Plan.

    

    

    
      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

    SECTION
1.  DEFINITIONS

    

    The following words and phrases, as
used herein, shall have the following meanings, unless a different meaning is
plainly required by the context:

    

    1.1           “Accrued
Retirement Allowance” means the amount of Retirement Allowance determined in
accordance with Section 4.1 (Normal Retirement Allowance) as of the
determination date.

    

    1.2           “Actuarial
Equivalent” means, except as otherwise provided in the Plan, an amount of equal
value when computed on the basis of the Unisex Pension-1984 Table with a four
year age setback and an interest rate of 5% per annum compounded
annually.

    

    However, for purposes of Option F under
Section 8.2 (Optional Forms of Payment), and provided their use results in a
larger lump sum value, the five percent (5%) above shall be replaced by the
interest rates published by the Pension Benefit Guaranty Corporation (“PBGC”)
for plans which terminate in the month of October of the Plan Year in which the
lump sum payment is made.  Notwithstanding the prior sentence,
effective for Annuity Starting Dates on and after October 1, 2000, in no event
shall the lump sum value for purposes of Section 8.2 be less than the amount
determined by using the IRS Mortality Table and the IRS Interest
Rate.

    

    For purposes of Option C under Section
8.2 (Optional Forms of Payment), an amount of equal value when computed on the
basis of:

    

        (a)         with
respect to Participants, a 65% male and 35% female blend of the UP-94 Mortality
Table projected to 2002 with Scale AA and an interest rate of 6%;
and

    

    (b) with respect to Beneficiaries, a 65%
female and 35% male blend of the UP-94 Mortality Table projected to 2002 with
Scale AA and an interest rate of 6%.

    

    1.3           “Actuary”
means an individual who is an enrolled actuary under the provisions of the
Employee Retirement Income Security Act of 1974, or a firm of actuaries which
has on its staff such an actuary, as appointed by the Company.

    

    1.4           “Additional
Allowance” means the annual amount of Retirement Allowance payable to a
Participant as a result of his or her having made Contributions to the
Plan.

    

    1.5           “Additional
Allowance Account” means the sum of the amounts contributed by a Contributor
accumulated with Interest less the sum of any Additional Allowance payments made
up to such date to or on behalf of such Contributor.

    

    1.6           “Affiliate”
means an Employer and any corporation which is a member of a controlled group of
corporations (as defined in Section 414(b) of the Code) which includes an
Employer; any trade or business (whether or not incorporated which is under
common control (as defined in Section 414(c) of the Code) with an Employer; any
organization (whether or not incorporated) which is a member of an affiliated
service group (as defined in Section 414(m) of the Code) which includes an
Employer; and any other entity required to be aggregated with an Employer
pursuant to regulations under Section 414(o) of the Code).  For
purposes under the Plan of determining whether or not a person is an Employee
and the periods of employment of such person, each such other company shall be
included as an “Affiliate” only for such period or periods during which such
other company is a member of the controlled group, under common control, an
affiliated service group, or otherwise required to be aggregated.

     

    
      1.7           “Annuity
Starting Date” means, unless the Plan expressly provides otherwise, the first
day of the first period for which an amount is due as an annuity or any other
form.  If a Participant who remains in service after his or her Normal
Retirement Date elects different commencement dates for his or her Basic
Allowance and Additional Allowance, he or she shall have different Annuity
Starting Dates with respect to such allowances.

      

      1.8           “Basic
Allowance” means the annual amount of Retirement Allowance payable to a
Participant without regard to his or her having made Contributions to the
Plan.

      

      1.9           “Beneficiary”
means the person or persons designated by a Participant in accordance with the
provisions of Section 6.3 (Designation of Beneficiary) to receive benefits under
the Plan, other than as a life annuity, as a result of the death of the
Participant.

      

      1.10           “Board
of Directors” means the Board of Directors of the Company.

      

      1.11           “Break
in Service” means a period which constitutes a break in an Employee’s Service,
as provided in Section 1.48(a).

      

      1.12           “Code”
means the Internal Revenue Code of 1986, as amended from time to
time.

       

      
        1.13           “Committee”
means the Benefit Administration Committee (known as the Pension Administration
Committee prior to January 1, 1995) appointed in accordance with Section 9
(Administration of the Plan).  Prior to January 1, 2000, certain
responsibilities of the Committee were delegated to an entity known as the
Retirement Board.

        

        1.14           “Company”
means New Jersey Natural Gas Company or any successor thereto by merger,
purchase or otherwise.

         

        1.15           “Compensation”
means the base wage or salary or amounts in lieu of base wage or salary, paid in
cash or its equivalent, of an Employee.  Commissions shall be included
in Compensation for the period for which they are earned, rather than the period
for which they are paid.  Compensation shall also include any
“Deferred Contributions” made pursuant to a salary reduction election under the
New Jersey Resources Corporation Employees’ Retirement Savings Plan and pre-tax
contributions under a “cafeteria plan” (as defined under Section 125 of the Code
and its applicable regulations) or under a “qualified transportation fringe” (as
defined under Section 132(f) of the Code and its applicable regulations) and
remuneration for accrued vacation time.  Compensation shall not
include overtime pay, bonuses, reimbursement for expenses, company contributions
to the payment of premiums on Employee’s insurance policies or any other special
payments over and above base wage or salary and commissions.  While an
Employee is not actively working on account of a disability and is not receiving
his or her regular earnings, his or her base rate of wage or salary in effect
immediately prior to his or her disability shall be deemed to be his or her
Compensation during the period of such disability.

      

    

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

     

    If a Participant’s Credited Service
includes any period under Section 1.20(f), the Participant’s Compensation shall
be determined as if he or she were an Employee during such period of Credited
Service.

    

    With respect to Plan Years beginning
after December 31, 1988 and before January 1, 1994, in no event will
Compensation exceed $200,000, as adjusted from time to time by the Secretary of
the Treasury in accordance with Section 415(d) of the Code and with respect to
Plan Years beginning after December 31, 1993, in no event will Compensation
exceed $150,000, as adjusted from time to time by the Secretary of the Treasury
in accordance with Section 401(a)(17) of the Code.  For any Plan Year
commencing on or after January 1, 2002, annual Compensation taken into account
for any purpose under the Plan shall not exceed $200,000, as adjusted from time
to time by the Secretary of the Treasury in accordance with Section 401(a)(17)
of the Code.  For purposes of determining benefit accruals in Plan
Years beginning after December 31, 2001, annual Compensation for Plan Years
beginning before January 1, 2002 shall not exceed $200,000 for Participants with
at least one Hour of Service after December 31, 2001.  The
cost-of-living adjustment in effect for a calendar year applies to annual
compensation for the determination period that begins within such calendar
year.  If compensation for any prior Plan Year is taken into account
in determining an Employee’s benefits for the current year, the compensation for
such prior year is subject to the applicable annual compensation limit in effect
for that prior year.

     

    1.16           “Contingent
Participant” means the person so designated by the Participant to receive life
annuity survivor benefits as a result of the death of the Participant in
accordance with the election of an option under Section 8.2 (Optional forms) or
Section 6.1 (Prior to Retirement).

    

    1.17           “Contributions”
of a Participant means the sum of his or her contributions under the Plan which
have not been withdrawn, not including Interest thereon.

    

    1.18           “Contributor”
means any Participant who has made contributions under the Plan, and who has not
withdrawn all of his or her Contributions, or is otherwise entitled to a
residual benefit arising from contributions previously withdrawn from the
Plan.

    

    1.19           “Covered
Compensation” means, for any Participant, the amount of Final Average
Compensation which does not exceed the average (without indexing) of the taxable
wage bases in effect under Section 230 of the Social Security Act for each year
in the 35 calendar year period ending with the last day of the calendar year in
which the Participant reaches his or her Social Security Retirement Age based on
the Social Security Act as in effect on the date of the Participant’s
termination of employment and computed as if the maximum taxable wage base for
the year of his or her termination of employment continued to apply for all
succeeding years.  No increase in Covered Compensation shall decrease
a Participant’s accrued benefit under the Plan.

    

    1.20           “Credited
Service” means as follows:

    

    (a)           With
respect to a Participant who was a Participant on September 30, 1976, Credited
Service for service rendered through that date shall be equal to the “Creditable
Service” recognized through September 30, 1976 under the terms of the Plan in
effect on that date.

    

    (b)           Except
as provided below, all Service on and after October 1, 1976 as an Employee shall
be Credited Service under the Plan.  Any period between a Severance
from Service Date and a reemployment date which is counted as Service as
provided in Section 1.48(a) shall not be counted as Credited
Service.

    

    (c)           Credited
Service shall include, to the extent required by law, any period of absence from
service with an Employer due to service in the uniformed services of the United
States which is counted in a Participant’s Service as provided in Section
1.48(d).

    

    (d)           Credited
Service shall include periods of absence on account of injury or illness, or
temporary layoff on account of reduction in force, leave of absence granted to
an Employee by an Employer, or periods of strike or lockout which are counted in
a Participant’s Service as provided in Section 1.48(e).

    

    (e)           Except
as provided in paragraph (f) below, Credited Service shall not be credited for
any period in which an individual is not an Employee but is in the employ of an
Employer.

    

    Effective October 1, 2009, except for
the purpose of determining eligibility for an Early Retirement Date under
Section 3.2, Credited Service shall not be credited for any period in which an
Employee is in the employ of an Employer but is not permitted to begin or resume
active participation in the Plan pursuant to Section 2.1(b).

    

    (f)           If:

    

    (i)      a
Participant is also a participant in the Represented Plan; and

    

    (ii)      the
last day the Participant earned Credited Service under this Plan is later than
the last day the Participant earned service for purposes of benefit accrual
under the Represented Plan;

    

    then the Participant’s Credited Service
under this Plan shall be determined as if periods of service that would be taken
into account in determining credited service under the Represented Plan were
periods of service as an Employee under this Plan.

     

    
      (g)           Credited
Service shall be counted in full years only.  Six months or more shall
be treated as a full year.

      

      (h)           In
no event shall an Employee be deemed to have more than one year of Credited
Service with respect to any 12-consecutive month period.

    

     

    
      1.21           “Disability
Retirement Date” means the first day of any month following the month in which a
Participant becomes Totally and Permanently Disabled and retires in accordance
with Section 3.3.  Pursuant to Section 8.1(c), a Disability Retirement
Date is not an Annuity Starting Date for purposes of this Plan.

      

      1.22           “Early
Retirement Date” means the first day of any month within the 10 years
immediately preceding his or her Normal Retirement Date on which a Participant
retires in accordance with Section 3.2 (Early Retirement Date).

       

    

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

    

    1.23           “Employee”
means any person who is employed by an Employer except for persons whose terms
and conditions of employment are determined by an agreement between the Employer
and a duly certified collective bargaining agent unless and until the Employer
and such an agent agree that the Plan shall apply to such persons.

    

    The term “Employee” shall not include
(a) any Leased Employee, except as otherwise provided by law or (b) any Employee
who is a nonresident alien who receives no earned income within the meaning of
Section 911(d)(2) of the Code from an Employer which constitutes income from
sources within the United States with in the meaning of Section 861(a) of the
Code.  In addition, any person classified as an independent
contractor, consultant or person otherwise designated as not eligible to
participate in or receive benefits under the Plan by an Employer or not on the
payroll of an Employer shall, during such period, be excluded from the
definition of Employee, regardless of any such person’s reclassification for
such period by the Internal Revenue Service for tax withholding purposes and
even if such ineligible person is subsequently determined to be an “employee”
for such period by any other governmental or judicial authority.

    

    1.24           “Employer”
means the Company and any Affiliate which, with the approval of the Board of
Directors, adopts the Plan as provided in Section 13.8.

    

    1.25           “Excess
Compensation” means the excess, if any, of the Participant’s Final Average
Compensation over his or her Covered Compensation.

    

    1.26           “Final
Average Compensation” means with respect to any Participant, the average of his
or her annual Compensation during the 60 consecutive months after 1965 and
preceding the date of his or her termination of employment (or during the total
number of months of his or her Service preceding the date of his or her
termination of employment if less than 60 consecutive completed months)
affording the highest such average.  Periods during which a
Participant has not incurred a Break in Service but during which no Compensation
is earned are included for purposes of determining Final Average
Compensation.

    

    With respect to a Participant who is
rehired by an Employer on or after October 1, 2009, the Final Average
Compensation of such Participant shall be frozen as of his or her previous
termination of employment date unless he or she is permitted to resume active
participation in the Plan pursuant to Section 2.5 or 2.6.

    
       

      1.27           “Highly
Compensated Employee” means, for a calendar year commencing on or after
January 1, 1997, any employee of the Company or an Affiliate (whether or
not eligible for participation in the Plan) who:

      

      (a)           was
a 5 percent owner (as defined in Section 416(i) of the Code) for such calendar
year or the prior calendar year; or

      

      (b)           for
the preceding calendar year received Section 414(s) Compensation in excess of
$80,000 and was among the highest 20 percent of employees for the preceding
calendar year when ranked by Section 414(s) Compensation paid for that year
excluding, for purposes of determining the number of such employees, such
employees as the Committee may determine on a consistent basis pursuant to
Section 414(q) of the Code.  The $80,000 dollar amount in the
preceding sentence shall be adjusted from time to time for cost of living in
accordance with Section 414(q) of the Code ($110,000 for
2010).

      

      Notwithstanding the foregoing,
employees who are nonresident aliens and who receive no earned income from the
Company or an Affiliate which constitutes income from sources within the United
States shall be disregarded for all purposes of this Section.

      

      The Company’s top-paid group election
as described above shall be used consistently in determining Highly Compensated
Employees for determination years of all employee benefit plans of the Company
and Affiliates for which Section 414(q) of the Code applies (other than a
multiemployer plan) that begin with or within the same calendar year, until such
election is changed by Plan amendment in accordance with IRS
requirements.  Notwithstanding the foregoing, the consistency
provision in the preceding sentence shall not apply for the Plan Year beginning
in 1997 and, for Plan Years beginning in 1998 and 1999, shall apply only with
respect to all qualified retirement plans (other than a multiemployer plan) of
the Company and Affiliates.

    

    
       

      For purposes of this Section 1.27,
“Section 414(s) Compensation” means W-2 compensation as described in Treasury
Regulations Section 1.414(s)-1(d)(2) and 1.415(c)-2(d)(4) and shall also include
all amounts not currently included in the Employee’s gross income by reason of
Sections 125, 132(f), 402(e)(3), 402(h)(1)(B), 402(k) and 457(b) of the
Code.

       

      
        1.28           “Hours
of Service” means, with respect to any applicable computation
period:

        

        (a)           each
hour for which the employee is paid or entitled to payment for the performance
of duties for an Employer;

        

        (b)           each
hour for which an employee is paid or entitled to payment by an Employer on
account of a period during which no duties are performed, whether or not the
employment relationship has terminated, due to vacation, holiday, illness,
incapacity (including disability), layoff, jury duty, service in the uniformed
services of the United States or leave of absence, but not more than 501 hours
for any single continuous period;

        

        (c)           each
hour for which back pay, irrespective of mitigation of damages, is either
awarded or agreed to by an Employer, excluding any hour credited under (a) or
(b) above, which shall be credited to the computation period or periods to which
the award, agreement or payment pertains, rather than to the computation period
in which the award, agreement or payment is made;

        

        (d)           each
hour for which an employee would normally be credited under paragraph (a) or (b)
above during a period of Parental Leave; and

        

        (e)           each
hour for which an employee would normally be credited under paragraph (a) or (b)
above during a period of leave for the birth, adoption or placement of a child,
to care for a Spouse or an immediate family member with a serious illness or for
the employee’s own illness pursuant to the Family and Medical Leave Act of 1993
and its regulations.

        

        No hours shall be credited on account
of any period during which the employee performs no duties and receives payment
solely for the purpose of complying with unemployment compensation, workers’
compensation or disability insurance laws.  The Hours of Service
credited shall be determined as required by Title 29 of the Code of Federal
Regulations, Section 2530.200b-2(b) and (c).

         

      

    

     

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

    
      1.29           “Interest”
means, when used in connection with a Participant’s Contributions, the actual
earnings of the Retirement Allowance Fund, excluding any capital gains or
losses, credited on the basis of the average net balance for the period covered
by the credit, but effective October 1, 1977 not less than 5% per annum,
compounded annually.  In determining the amount of Additional
Allowance Account payable to a Participant or a Beneficiary, Interest shall be
credited from the previous September 30 up to the last day of the month
immediately preceding such payment on the basis of the rate established for the
last full Plan Year.  Solely for purposes of allocating accrued
benefits between Company-provided benefits and those provided by employee
contributions in accordance with Section 411(c) of the Internal Revenue Code,
commencing October 1, 1988, total Interest will be the accumulated interest
determined in accordance with the preceding provisions of this Section, but not
less than 120% of the Federal midterm rate of interest under Section 1274 of the
Internal Revenue Code for the first day of each Plan Year beginning on or after
that date.

    

    

    1.30           “Investment
Manager” means an individual and/or other entity appointed in accordance with
Section 10.3 (Investment Manager) who has acknowledged in writing that he or she
is a fiduciary with respect to the Plan and who is:

    

    (a)           registered
as an investment adviser under the Investment Advisers Act of 1940;
or

    

    (b)           a
bank, as defined in such Act; or

    

    (c)           an
insurance company qualified to manage, acquire or dispose of assets of pension
plans.

    

    1.31           “IRS
Interest Rate” means the annual rate of interest on 30-year Treasury Securities
as specified by the Commissioner of Internal Revenue for the third full calendar
month preceding the applicable Stability Period.  Effective with
Annuity Starting Dates on or after October 1, 2008, IRS Interest Rate means the
interest rate prescribed under Section 417(e)(3)(C) of the Code (as it reads
effective on and after the first date of the 2008 Plan Year), as in effect for
the third full calendar month preceding the applicable Stability
Period.

    

    1.32           “IRS
Mortality Table” means the mortality table prescribed by the Secretary of the
Treasury under Section 417(e)(3)(A)(ii)(I) of the Code as in effect on the first
day of the applicable Stability Period.  However, when determining the
amount of a Retirement Allowance with an Annuity Starting Date on or after
September 30, 2002 and before October 1, 2008, the IRS Mortality Table means the
mortality table prescribed by Revenue Ruling 2001-62.  When
determining the amount of a Retirement Allowance with an Annuity Starting Date
on or after October 1, 2008, the IRS Mortality Table means the mortality table
prescribed under Section 417(e)(3)(B) of the Code (as it reads effective on and
after the first date of the 2008 Plan Year).

    

    1.33           “Leased
Employee” means any person (other than a common law employee of an Employer)
who, pursuant to an agreement between an Employer and any other person (“leasing
organization”), has performed services for the Employer or any related persons
determined in accordance with Section 414(n)(6) of the Code on a substantially
full-time basis for a period of at least one year and such services are
performed under the primary direction of or control by the
Employer.

    

    1.34           “Normal
Retirement Age” means an Employee’s 65th
birthday.

    

    1.35           “Normal
Retirement Date” means the first day of the month following the month in which a
Participant’s Normal Retirement Age occurs.

    

    1.36           “Parental
Leave” means a period in which the employee is absent from work immediately
following his or her active employment because of the employee’s pregnancy, the
birth of the employee’s child, or the placement of a child with the employee in
connection with the adoption of that child by the employee, for purposes of
caring for that child for a period beginning immediately following that birth or
placement, provided such period of absence commences on or after October 1,
1985.

     

    1.37           “Participant”
means any person who meets the requirements for participation as provided in
Section 2 (Participation).

    

    1.38           “Plan”
means the Plan for Retirement Allowances for Non-Represented Employees as
amended and restated as set forth herein, and as it may hereafter be further
amended from time to time.

    

    1.39           “Plan
Year” means the 12-month period October 1 to September 30.

    

    1.40           “Postponed
Retirement Date” means the first day of any month following his or her Normal
Retirement Date on which a Participant retires in accordance with Section 3.4
(Postponed Retirement Date).

    

    1.41           “Represented
Additional Allowance” means the vested “Additional Allowance” (as such term is
defined in the Represented Plan) which would be payable to the
Participant.

    

    1.42           “Represented
Basic Allowance” means the vested “Basic Allowance” (as such term is defined in
the Represented Plan) which would be payable to the Participant in the form of a
single life annuity commencing on his or her Normal Retirement Date or, for
purposes of Section 4.7(a)(ii)(A), commencing on his or her Postponed Retirement
Date, determined under the provisions of the Represented Plan on the date the
Participant ceased to be a Represented Employee.

    

    1.43           “Represented
Employee” means any person who is employed by an Employer and whose terms and
conditions of employment are determined by a collective bargaining agreement
between an Employer and Local Union 1820 of the International Brotherhood of
Electrical Workers, AFL-CIO.

    

    1.44           “Represented
Plan” means the New Jersey Natural Gas Company Plan for Retirement Allowances
for Represented Employees.

    

    1.45           “Retirement
Allowance” means annual payments under the Plan as provided in Section
8.

    

    1.46           “Retirement
Allowance Fund” means all funds at any time held by the Trustee for the purposes
of the Plan, as provided for in Section 10 (Management of the
Funds).

    

    1.47           “Retirement
Date” shall mean Normal, Early, Disability or Postponed Retirement Date,
whichever is applicable.

     

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

    

    1.48           “Service”
means as follows:

    
      

      (a)           Except
as provided in paragraphs (b) through (h) below, Service, with respect to
services rendered on and after October, 1976 shall begin on the date the
Employee first completes an Hour of Service, or October 1, 1976, if later, and
end on the Employee’s Severance From Service Date.  If an Employee’s
employment is terminated and he or she is later reemployed within one year, the
period between his or her Severance From Service Date and the date of his or her
reemployment shall be included in his or her Service.  However, if his
or her employment is terminated during a period of absence from service for
reasons such as vacation, sickness, disability, layoff, or leave of absence
approved by an Employer, Service shall be counted for the period from his or her
Severance From Service Date to the date of his or her reemployment only if he or
she is reemployed within one year of the first day of that absence.  A
Break in Service shall occur if an Employee is not reemployed within one year
after a Severance From Service Date; provided, however, that if an Employee’s
employment is terminated or if the Employee is otherwise absent from work
because of Parental Leave, a Break in Service shall occur only if the Employee
is not reemployed or does not return to active service within two years of his
or her Severance From Service Date; and provided further, that the first year of
such absence for Parental Leave, measured from his or her Severance From Service
Date, shall not be considered in determining the Employee’s “period of Break in
Service” for purposes of Section 7.4, 7.5 or 7.6.  If the Employee has
a Break in Service, any period before the Break in Service shall be excluded
from his or her Service, except as provided in Section 7.4, 7.5 or
7.6.

       

    

    (b)           With
respect to any person who was employed by the Company on September 30, 1976,
Service for service rendered through that date shall be equal to “Creditable
Service” recognized through September 30, 1976 under the terms of the Plan as in
effect on that date.

    

    (c)           For
Employees transferred from the payroll of Jersey Central Power & Light
Company as of June 3, 1952, Service shall include continuous employment prior to
June 3, 1952 with Jersey Central Power & Light Company or any predecessor,
subsidiary, or affiliate of that company as certified to the Company by Jersey
Central Power & Light Company.

    

    (d)           If
an Employee shall have been absent from the service of an Employer because of
service in the uniformed services of the United States and if he or she shall
have returned to the service of an Employer having applied to return while his
or her reemployment rights were protected by law, that absence shall not count
as a Break in Service, but instead shall be counted as Service.

    

    (e)           Absence
on account of injury or illness, or temporary layoff on account of reduction in
force or leave of absence granted to an Employee by an Employer shall be
included as Service.  The Employer’s decision as to what constitutes a
temporary layoff shall be final and conclusive.  In no event shall a
strike or lockout be considered a Break in Service or a termination of
employment within the meaning of this Section.

    

    (f)           For
purposes of determining eligibility for participation and vesting, each of the
following periods of service shall be counted in a person’s Service to the
extent that it would be recognized under paragraphs (a) through (e) above with
respect to Employees:

    

    (i)           a
period of service as an employee, but not an Employee, of an Employer;
or

    

    (ii)           in
the case of a person who is a Leased Employee before or after a period of
service as an Employee, a period during which he or she has performed services
for an Employer as a Leased Employee.

    

    The Break in Service rules of Section
7.5 or 7.6 shall be applied as though all such periods of service were service
as an Employee.

    

    (g)           Service
shall be counted in years, months, and days.

    

    (h)           In
no event shall an Employee be deemed to have more than one year of Service with
respect to any 12-consecutive month period.

    

    1.49           “Severance
From Service Date” means the earlier of (a) the date an Employee quits, retires,
is discharged, or dies, or (b) the last day of an approved leave of absence, or
if later, the first anniversary of the date on which an Employee is first absent
from service, with or without pay, for any reason such as vacation, sickness,
disability, layoff, or leave of absence.

    

    1.50           “Social
Security Retirement Age” means age 65 with respect to a Participant who was born
before January 1, 1938; age 66 with respect to a Participant who was born after
December 31, 1937 and before January 1, 1955; and age 67 with respect to a
Participant who was born after December 31, 1954.

    

    1.51           “Spousal
Consent” means the irrevocable written consent given by a Participant’s Spouse
to an election made by the Participant of an optional form of payment or a
designation of a specified Beneficiary or Contingent Participant as provided in
Sections 6.3 and 8.3.  The optional form or specified Beneficiary or
Contingent Participant shall not be changed unless further Spousal Consent is
given, unless the Spouse expressly waives the right to consent to any future
changes.  Spousal Consent shall be duly witnessed by a Plan
representative or notary public and shall acknowledge the effect on the Spouse
of the Participant’s election.  The requirement for Spousal Consent
may be waived by the Committee in the event that the Participant establishes to
its satisfaction that he or she has no Spouse, that such Spouse cannot be
located, or under such other circumstances as may be permitted under applicable
U.S. Treasury Department regulations.  Spousal Consent shall be
applicable only to the particular Spouse who provides such consent.

     

    1.52           “Spouse”
means a person of the opposite sex of the Participant who is the Participant’s
legal spouse as recognized under the Defense of Marriage Act of
1996.

    

    1.53           “Stability
Period” means the Plan Year in which occurs the Annuity Starting Date for the
distribution.

    

    1.54           “Totally
and Permanently Disabled” means that a physical or mental condition renders a
Participant disabled to the extent that he or she is eligible for and receives
disability benefits under the Social Security Act.  In the event that
a Participant ceases to receive disability benefits under the Social Security
Act, he or she shall no longer be considered to be Totally and Permanently
Disabled for purposes of the Plan.

    

    A Participant in receipt of a
disability Retirement Allowance may be required to submit to evidence of his or
her continued eligibility for disability benefits under the Social Security Act,
at any time prior to his or her Normal Retirement Date, but not more often than
semiannually, to determine whether he or she continues to be Totally and
Permanently Disabled.  If it is found that he or she is no longer
entitled to such Social Security disability benefits, or in the event the
disabled Participant refuses to submit evidence of his or her continued
eligibility for such Social Security disability benefits, his or her disability
Retirement Allowance shall cease.

    

    1.55           “Trustee”
means the corporate trustee and/or insurance company appointed in accordance
with Section 10.2 (Trustee).

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

    

    SECTION
2.  PARTICIPATION

    

    2.1           Eligibility
Requirements

    

    (a)           Each
person who was covered under the Plan on September 30, 2009 shall continue as a
Participant.  Except to the extent excluded from participation under
Section 2.1(b) below, each Employee hired on or before September 30, 2009 shall
become a Participant as of the first day of the month coincident with or next
following the date on which he or she has both attained age 21 and has completed
1 year of Service.

    

    (b)           Participation
in this Plan is frozen as of September 30, 2009.  Anyone hired,
rehired or transferred to employment with an Employer on or after October 1,
2009 shall not be eligible to join the Plan or accrue additional benefits under
the Plan except as set forth below.

    

    Notwithstanding the foregoing, on or
after October 1, 2009:

    

    (i)           A
former Employee who is rehired as an Employee may be eligible to resume active
participation in the Plan if he or she meets the requirements of Section
2.5.

    

    (ii)           An
employee who transfers to an Employer to assume a position as an Employee or who
is transferred from an ineligible position to a position as an Employee with the
same Employer, may be eligible to begin or resume active participation in the
Plan if he or she meets the requirements of Section 2.6.

    

    2.2           Continuation
of Participation

    

    Each Participant shall continue to be
such after he or she ceases to be an Employee, provided he or she continues to
be entitled to retirement or vested benefits in accordance with Section 3
(Retirement Date) or 7 (In Event of Termination of Employment).

    

    2.3           Contributory
Participation Requirements

    

    Each Participant who was a Contributor
on October 1, 1977 shall continue to be a Contributor unless he or she elects
not to do so.

    

    Each other Participant was eligible to
become a Contributor as of the first day of the payroll period following the
date he or she became a Participant but not on or after June 1,
1984.

    

    Each Participant who elected to become
a Contributor had to file with the Committee a signed membership form at least
one week prior to the date as of which he or she was to become a
Contributor.  The membership form, furnished for this purpose, gave
such information as the Committee required, and authorized the deduction of the
Participant’s contributions from his or her pay.

    

    2.4           Transfer
to Non-covered Status

    

    If a Participant ceases to meet the
definition of Employee as set forth in Section 1.23 (Employee) but continues in
the employment of the Company or an Affiliate, his or her Service shall not be
broken and he or she shall continue to be a Participant.  However, his
or her Accrued Retirement Allowance shall remain unchanged unless and until such
time as he or she may again become an Employee.  In the event of the
termination of employment or retirement of such a Participant before again
becoming an Employee, he or she shall be entitled to benefits hereunder only to
the extent, if any, applicable under the Plan as in effect on the date as of
which he or she ceased to be an Employee, unless the Plan expressly provides
otherwise.

     

    2.5           Reemployment
on or after October 1, 2009

    

    A former Employee who is rehired on or
after October 1, 2009 and who was a Participant immediately prior to his or her
termination of employment, may resume active participation in this Plan provided
he or she is rehired no later than two years after his or her termination of
employment. Such rehired Participant will also be subject to the applicable
provisions of Sections 7.3, 7.4, 7.5 and 7.7.

    

    2.6           Transfers
on or after October 1, 2009

    

    An employee who was hired before
October 1, 2009 and who becomes an Employee from (a) a position as an employee
of an Affiliate which has not adopted the Plan, or (b) a position as an employee
of an Employer that is ineligible to participate in this Plan, may begin or
resume active participation in this Plan as of such transfer date provided,
however, that if the Employee is beginning participation in this Plan, such
participation is also subject to the Employee meeting the eligibility
requirements described in Section 2.1(a).

    

    
      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

    

    SECTION
3.  RETIREMENT DATE

    

    3.1           Normal
Retirement Date

    

    A Participant who terminates employment
and retires on his or her Normal Retirement Date will be entitled to a
Retirement Allowance determined in accordance with Section 4 (Amount of
Retirement Allowance) payable for life in monthly installments commencing on his
or her Normal Retirement Date.

    

    3.2           Early
Retirement Date

    

    A Participant who has completed 20 or
more years of Credited Service may terminate employment and retire on an Early
Retirement Date and shall be entitled to a Retirement Allowance determined in
accordance with Section 4 (Amount of Retirement Allowance), payable for life in
monthly installments commencing on his or her Normal Retirement Date or, at the
Participant’s election, on the first day of any earlier month on or after his or
her Early Retirement Date.

    

    3.3           Disability
Retirement Date

    

    If a Participant who has at least 5
years of Service becomes Totally and Permanently Disabled while an Employee and
before Normal Retirement Date, he or she may terminate employment and retire as
of a Disability Retirement Date (provided he or she is still Totally and
Permanently Disabled on that date) and shall be entitled to a Retirement
Allowance determined in accordance with Section 4 (Amount of Retirement
Allowance) and payable as provided in Section 4.6 (Disability Retirement
Allowance) in monthly installments commencing on his or her Disability
Retirement Date.

    

    If a Participant who has at least 5
years of Service becomes entitled to disability benefits under an Employer’s
Long Term Disability (LTD) Plan, he or she may (a) if eligible, retire as of a
Disability Retirement Date as provided in the above paragraph, or (b) be treated
as if he or she were on an approved leave of absence and continue as an active
Participant as long as he or she remains entitled to LTD benefits and such
period of approved leave of absence shall be included in his or her Service and
his or her Credited Service.  Such approved leave of absence shall
terminate and any additional service crediting will end as of the earlier
of:  (a) the Participant’s death; (b) the date the Participant is no
longer Totally and Permanently Disabled; or (c) the date as of which the
Participant’s disability benefits under an Employer’s Long Term Disability (LTD)
Plan end.  Any Credited Service earned during such period of
disability will be included in the calculation of the Participant’s Retirement
Allowance at his or her Annuity Starting Date determined in accordance with the
provisions of Section 3.1 (Normal Retirement Date), Section 3.2 (Early
Retirement Date), Section 3.4 (Postponed Retirement Date) or Section 7.2 (Vested
Participants), as applicable.

    

    3.4           Postponed
Retirement Date

    

    A Participant may continue in active
service after reaching his or her Normal Retirement Date.

    

    A Participant whose employment is so
continued may terminate employment and retire as of a Postponed Retirement Date
and shall be entitled to a Basic Allowance determined in accordance with Section
4.2 (Basic Allowance), payable for life in monthly installments commencing on
his or her Postponed Retirement Date.

    

    If the Participant has contributed
toward an Additional Allowance, his or her Additional Allowance shall commence
on his or her Normal Retirement Date regardless of the continuance of his or her
employment in accordance with this Section 3.4, unless the Participant elects to
defer the commencement of his or her Additional Allowance payments until his or
her Postponed Retirement Date.  Also, a Participant continuing in
active service after reaching his or her Normal Retirement Date will be deemed
to have suspended making Contributions unless such Participant elects
otherwise.

     

    
      3.5           Reemployment
of a Participant Currently in Receipt of a Retirement Allowance

      

      If a Participant in receipt of a
Retirement Allowance is reemployed by an Employer, his or her Retirement
Allowance payments shall be suspended for each month during the period of such
reemployment in which he or she performs services for an Employer for at least
eight days.  However, Additional Allowance payments shall not be
suspended after the Participant’s Normal Retirement Date unless the Participant
elects otherwise.  Any election of an optional form of payment with
respect to suspended payment shall be void.  Any Service and Credited
Service to which the Participant was entitled when he or she retired or
terminated service shall be restored.

      

      Subject to the provisions of Section
2.5, a Participant who is rehired as an Employee may become an active
Participant as of the first day of the month following his or her reemployment
provided he or she is then an Employee.

      

      Upon the subsequent retirement of a
Participant who resumed active participation in the Plan upon rehire, his or her
Basic Allowance shall be based on the benefit formula then in effect and his or
her Compensation and Credited Service before and after the period when he or she
was not in the service of the Employer reduced by an amount of Actuarial
Equivalent value to the Basic Allowance payments he or she received before the
earlier of the date of his or her reemployment or his or her Normal Retirement
Date.  The Participant’s Basic Allowance upon later retirement shall
never be less than the amount of his or her previous Basic Allowance modified to
elect any optional form of payment in effect on his or her later
retirement.

      

      Upon the subsequent retirement of a
Participant who was not eligible to resume active participation in the Plan
pursuant to Section 2.5, the provisions of the paragraph above shall apply
except his or her Basic Allowance shall be based on the benefit formula in
effect on the date he or she previously terminated employment (including, if
applicable, the Early Retirement Allowance reduction factors in effect at such
time) and his or her Final Average Compensation and Credited Service determined
as of that date.

    

    

    
      
        
           

        

        
          8

          
            

          

        

        
           

        

      

    

    

    

    

    Notwithstanding the foregoing, if a
Participant in receipt of a Retirement Allowance is reemployed by an Employer
for a special project expected to last less than one year, his or her Retirement
Allowance shall not be suspended during his or her period of reemployment, and
his or her Retirement Allowance payments shall not be adjusted to take into
account his or her Compensation during his or her period of
reemployment.

    

    If a Participant’s Additional Allowance
payments are suspended, upon his or her subsequent retirement:

    

    (a)           if
the Participant’s subsequent retirement is prior to his or her Normal Retirement
Date, his or her Additional Allowance shall be based on the provisions of the
Plan then in effect and his or her Contributions before and after the period
when he or she was not in the service of the Employer; or

    

    (b)           if
the Participant’s subsequent retirement is on or after his or her Normal
Retirement Date but prior to April 1 of the calendar year following the calendar
year in which he or she attains age 701⁄2, his or her Additional Allowance shall
be equal to the greater of:

    

    (i)           the
amount of Additional Allowance determined in accordance with Section 4.3
(Additional Allowance) based on Contributions at the Participant’s Postponed
Retirement Date; and

    

    (ii)           an
amount of Actuarial Equivalent value to the Additional Allowance to which the
Participant was receiving, determined as of the date the Participant’s
Additional Allowance payments are first suspended, recomputed as of the date of
the Participant’s subsequent retirement.

    

    

    
      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    

    

    SECTION
4.  AMOUNT OF RETIREMENT ALLOWANCE

    

    4.1           Normal
Retirement Allowance

    

    (a)           The
Retirement Allowance to commence upon a Participant’s Normal Retirement Date and
payable during his or her lifetime shall comprise (i) the Basic Allowance
described in Section 4.2 and (ii) in the case of a Contributor, the Additional
Allowance described in Section 4.3.

    

    (b)           If
a Participant who is rehired on or after October 1, 2009 and has Service
restored pursuant to Sections 7.3, 7.4, 7.5 or 7.6 is not eligible to be an
active Participant after rehire pursuant to Section 2.5, the Retirement
Allowance shall be based on the benefit formula (Section 4.2 and Section 4.3) in
effect under the Plan at the time of such Participant’s last termination of
employment date occurring before October 1, 2009.

    

    4.2           Basic
Allowance

    

    (a)           For
retirements occurring on or after October 1, 1989 but prior to December 1, 2003,
the annual amount of a Participant’s Basic Allowance shall be equal to the sum
of:

    

    (i)           1.10%
of the Participant’s Covered Compensation; plus

    

    (ii)           1.65%
of his or her Excess Compensation;

    

    multiplied by the number of years of
his or her Credited Service not in excess of 35 years;

    

    PLUS

    

    (iii)           1.25%
of the Participant’s Final Average Compensation multiplied by the number of
years of his or her Credited Service in excess of 35 years;

    

    reduced by, solely in the case of a
Participant who is also a participant in the Represented Plan and whose Credited
Service under this Plan includes any period determined under Section 1.20(f),
the Participant’s Represented Basic Allowance.

    

    (b)           For
retirements occurring on or after December 1, 2003, the annual amount of a
Participant’s Basic Allowance shall be equal to the sum of:

    

    (i)           1.10%
of the Participant’s Covered Compensation; plus

    

    (ii)           1.65%
of his or her Excess Compensation;

    

    multiplied by the number of years of
his or her Credited Service not in excess of 28 years;

    

    PLUS

    

    (iii)           1.25%
of the Participant’s Covered Compensation; plus

    

    (iv)           1.65%
of his or her Excess Compensation;

    

    multiplied by the number of years of
his or her Credited Service in excess of 28 years;

    

    reduced by, solely in the case of a
Participant who is also a participant in the Represented Plan and whose Credited
Service under this Plan includes any period determined under Section 1.20(f),
the Participant’s Represented Basic Allowance.

    
       

      In no event shall the pension
determined under this Section 4.2 be less than the pension which would have been
provided under the terms of the Plan as in effect on September 30, 1989,
assuming the Participant terminated his or her employment on such
date.  Also, any Participant who retires or terminates employment on
or after October 1, 1989, other than a Participant whose Compensation exceeds
the dollar limit contained in Section 414(q)(1)(B) of the Code, shall be
entitled to receive a pension at least as large as that which would have been
payable under the terms of the Plan as in effect on September 30, 1989 on the
earlier of December 31, 1989 or the date such Participant’s employment
terminates.  The pension determined under this Section 4.2 is also
subject to the provisions of Section 4.11.

      

      The Basic Allowance shall be increased
by 20% for the first year following the Annuity Starting Date or, in the case of
a disability Retirement Allowance, following the date as of which the disability
Retirement Allowance commences.

      

      4.3           Additional
Allowance

      

      The annual amount of a Contributor’s
Additional Allowance shall be equal to 25% of his or her
Contributions.

       

      
        
          4.4           Maximum
Benefit

           

        

        (a)The provisions of Section 415 of the Code are
incorporated into the Plan by reference effective with the first Limitation Year
beginning on or after July 1, 2007.  The following provisions of this
Section that reflect the increased limitations of Section 415(b) of the Code
effective on and after January 1, 2002 shall apply to all Participants (with
benefits limited by Section 415(b) of the Code) who had an Accrued Benefit under
the Plan immediately prior to January 1, 2002 (other than an Accrued Benefit
resulting from a benefit increase due solely to increases in limitations under
Section 415(b)).

        

          
            
               

            

            
              10

              
                

              

            

            
               

            

          

        

      

    

     

          
(b)           Notwithstanding
any other provision of the Plan, the annual benefit to which a Participant is
entitled under the Plan shall not, in any Limitation Year, be an amount that
would exceed the applicable limitations under Section 415 of the Code and
regulations thereunder.  If the benefit payable under the Plan would
(but for this Section) exceed the limitations of Section 415 of the Code by
reason of a benefit payable under another defined benefit plan aggregated with
this Plan under Section 415(f) of the Code, the benefit under this Plan shall be
reduced before any reductions are made under such other plan.

    

    (c)           As
of January 1 of each calendar year commencing on or after January 1, 2002, the
dollar limitation as determined by the Commissioner of Internal Revenue for
that calendar year shall become effective as the maximum permissible dollar
amount of benefit payable under the Plan during the Limitation Year coincident
with that calendar year.  Such dollar limitation shall apply to
Participants who retire during the Limitation Year but not to Participants who
retired prior to that Limitation Year.  

      

    

    (d)           The
term “remuneration” for purposes of applying the applicable limitations under
Section 415 of the Code with respect to any Participant shall mean the wages,
salaries and other amounts paid in respect of such Participant by the Company or
any Affiliate for personal services actually rendered and including any elective
amounts that are not includible in gross income of the Participant by reason of
Section 125(a), 132(f)(4), 402(e)(3), 402(h)(1)(B), 402(k), or 457(b) of the
Code.  For Limitation Years beginning on or after July 1, 2007, for
purposes of applying the maximum benefit limitations under this Section 4.4,
remuneration shall also include compensation paid by the later of 21⁄2 months
after an Employee’s severance from employment with the Company and all
Affiliates or the end of the  Limitation Year that includes the date
of the Employee’s severance from employment, if, absent a severance from
employment, such payment would have been paid to the Employee while the Employee
continued in employment with the Company or an Affiliate, and is regular
compensation for services during the Employee’s regular working hours,
compensation for services outside the Employee’s regular working hours (such as
overtime or shift differential), commissions, bonuses or other similar
compensation.

     

    Effective as of January 1, 2009, in
accordance with the provisions of Section 414(u)(12) of the Code and any related
regulations, remuneration shall include any differential wage payments paid to
an Employee or former Employee by the Company during the period such Employee is
performing qualified military service.

    

    In addition, effective for Limitation
Years beginning on or after July 1, 2007, for purposes of applying the maximum
benefit limitations under this Section 4.4, remuneration as defined herein shall
not exceed the limitation on compensation under Section 401(a)(17) of the
Code.

    

    (e)           Notwithstanding
the above, the maximum Retirement Allowance payable to a Participant who has a
Freeze Date enumerated below shall not be less than his or her Old Law
Benefit.  A Participant’s “Old Law Benefit” at any date is the maximum
benefit he or she would be entitled to receive at such date, determined without
regard to any changes in the terms and conditions of the Plan after December 8,
1994, without regard to any benefits that accrue under the Plan after his or her
Freeze Date, and without regard to any cost of living changes that become
effective after his or her Freeze Date.  The Freeze Date of a
Participant whose Retirement Allowance commences on or after January 1, 1995 and
before January 1, 2000 shall be December 31, 1999.

    

    (f)           The
Limitation Year is the calendar year.

    

    4.5           Early
Retirement Allowance

    

    The annual amount of Retirement
Allowance for a Participant retiring under Section 3.2 (Early Retirement Date)
shall be either (a) or (b), as elected by the Participant:

    

    (a)           The
amount of his or her Accrued Retirement Allowance; Retirement Allowance payments
shall commence on the Participant’s Normal Retirement Date.

    

    (b)           For
Participants whose last day of Service is before December 8, 1993, the amount
determined in accordance with (a) above, reduced by 5% for each year (0.41667%
per month) by which the Annuity Starting Date (which may be the first day of any
month on or after the Participant’s Early Retirement Date but not later than his
or her Normal Retirement Date) precedes his or her Normal Retirement
Date.

    

    For Participants whose last day of
Service is on or after December 8, 1993, the percentage of the amount determined
in accordance with (a) above as determined from the table below:

     

    
      	
               

              Last
      Day of Service:

            	
              October
      1, 1993 through December 7, 1993

            	
               

              December
      8, 1993 through December 31, 1998

            	
              On
      or After

              January
      1, 1998

            
	
               

              Annuity
      Starting Date:

            	
              On
      or After 

              October
      1, 1993

            	
              December
      8, 1993 through December 7, 1994

            	
              December
      8, 1994 through December 7, 1995

            	
              On
      or After 

              December
      8, 1995

            	
              On
      or After

              January
      1, 1998

            
	
              Age
      at Benefit Commencement

            	 
      	 
      	 
      	 
      	 
      
	
              65

            	
              100%

            	
              100%

            	
              100%

            	
              100%

            	
              100%

            
	
              64

            	
              95%

            	
              100%

            	
              100%

            	
              100%

            	
              100%

            
	
              63

            	
              90%

            	
              90%

            	
              100%

            	
              100%

            	
              100%

            
	
              62

            	
              85%

            	
              85%

            	
              90%

            	
              100%

            	
              100%

            
	
              61

            	
              80%

            	
              80%

            	
              80%

            	
              90%

            	
              100%

            
	
              60

            	
              75%

            	
              75%

            	
              75%

            	
              75%

            	
              100%

            
	
              59

            	
              70%

            	
              70%

            	
              70%

            	
              70%

            	
              70%

            
	
              58

            	
              65%

            	
              65%

            	
              65%

            	
              65%

            	
              65%

            
	
              57

            	
              60%

            	
              60%

            	
              60%

            	
              60%

            	
              60%

            
	
              56

            	
              55%

            	
              55%

            	
              55%

            	
              55%

            	
              55%

            
	
              55

            	
              50%

            	
              50%

            	
              50%

            	
              50%

            	
              50%

            

    

    

    (c)           If
a Participant who is rehired on or after October 1, 2009 and has Service
restored pursuant to Sections 7.3, 7.4, 7.5 or 7.6 is not eligible to be an
active Participant after rehire, the reduction factors in Section 4.5(b) shall
be those in effect under the Plan at the time of such Participant’s last
termination of employment date occurring before October 1, 2009.

    

    
      
        
           

        

        
          11

          
            

          

        

        
           

        

      

    

    

    4.6           Disability
Retirement Allowance

    

    The annual amount of Disability
Retirement Allowance for a Participant retiring under Section 3.3 (Disability
Retirement Date) shall be determined in accordance with Section 4.1 above and
shall be paid to the Participant monthly until the earlier of (a) the
Participant’s death; (b) the date the Participant is no longer Totally and
Permanently Disabled; or (c) the Participant’s Normal Retirement
Date.  Payment will commence in accordance with the provisions of
Section 8 (Forms of Retirement Allowance) applicable to a Disability Retirement
Allowance.

    

    When a Participant is no longer
eligible to receive a Disability Retirement Allowance, he or she will be
entitled to retire in accordance with the provisions of Section 3.1 (Normal
Retirement Date), Section 3.2 (Early Retirement Date), Section 3.4 (Postponed
Retirement Date) or Section 7.2 (Vested Participants), as
applicable.

    

    A Participant who is disabled to the
extent that he or she would have been considered “Totally and Permanently
Disabled” under the terms of the Plan before it was amended, effective October
1, 1976, but is not Totally and Permanently Disabled for purposes of the Plan
after such amendment, shall be entitled to retire and receive a Retirement
Allowance determined in accordance with the Plan before it was amended effective
October 1, 1976.

    

    If the Participant dies before his or
her Annuity Starting Date, any death benefits will be determined under the
applicable provisions of Section 6.

    

    4.7           Postponed
Retirement Allowance

    

    (a)           (i)           The
Basic Allowance for a Participant retiring under Section 3.4 (Postponed
Retirement Date) shall commence on his or her Postponed Retirement
Date.

    

    (ii)           The
annual amount of Basic Allowance for a Participant retiring under Section 3.4
(Postponed retirement date) shall equal to the greater of:

    

    (A)           the
amount of Basic Allowance determined in accordance with Section 4.2 (Basic
Allowance) based on Credited Service and Final Average Compensation at the
Participant’s Postponed Retirement Date; or

    

    (B)           the
amount of Basic Allowance to which the Participant would have been entitled
under Section 4.2 (Basic Allowance) if he or she had retired on his or her
Normal Retirement Date increased by an amount of Actuarial Equivalent value to
the monthly payments which would have been payable with respect to each month
during the postponement period which is a Non-suspendible Month.

    

    (iii)           Notwithstanding
subparagraphs (i) and (ii) above, in the event a Participant remains in service
after the April 1 of the calendar year following the calendar year in which he
or she attains age 701⁄2, and is not required to commence payment of his or her
Basic Allowance while in service under the provisions of Section 8.4(b), then
his or her Basic Allowance shall be the greater of (A) the amount of Basic
Allowance determined in accordance with Section 4.2 (Basic Allowance) based on
Credited Service and Final Average Compensation at the Participant’s Postponed
Retirement Date; or (B) an amount of Actuarial Equivalent value to the Basic
Allowance to which the Participant would have been entitled to under Section 4.2
(Basic Allowance) if he or she had retired on such April 1 (“said date”)
recomputed in accordance with regulations issued by the Secretary of the
Treasury as of the first day of each subsequent Plan Year (and as of his or her
actual Postponed Retirement Date) as if such date were the Participant’s
Postponed Retirement Date.  However, in the case of a Participant who
attained age 701⁄2 prior to 1996, the preceding sentence shall be modified by
replacing “such April 1” in clause (B) with “the end of the Plan Year preceding
January 1, 1997” and “the first day of each subsequent Plan Year” with “the end
of each subsequent Plan Year.”  Amounts of Actuarial Equivalent value
shall be calculated using the Plan’s postponed retirement actuarial equivalence
factors and shall be applied on a year-by-year basis measured from the aforesaid
date.

     

    
      (b)           (i)           The
Additional Allowance for a Participant who remains in service after his or her
Normal Retirement Date shall commence on the Participant’s Normal Retirement
Date, unless the Participant elects, prior to his or her Normal Retirement Date,
to defer commencement until the Participant’s Postponed Retirement
Date.

      

      (ii)           The
annual amount of Additional Allowance for a Participant who remains in service
after his or her Normal Retirement Date and who does not elect to defer
commencement of his or her Additional Allowance shall be determined in
accordance with Section 4.3 (Additional Allowance).

      

      (iii)           The
annual amount of Additional Allowance for a Participant who remains in service
after his or her Normal Retirement Date and who does elect to defer commencement
of his or her Additional Allowance shall be equal to the greater
of:

      

      (A)           the
amount of Additional Allowance determined in accordance with Section 4.3
(Additional Allowance) based on Contributions at the Participant’s Postponed
Retirement Date; or

      

      (B)           an
amount of Actuarial Equivalent value to the Additional Allowance to which the
Participant would have been entitled under Section 4.3 (Additional Allowance) if
he or she had retired on his or her Normal Retirement Date, recomputed as of the
first day of each subsequent Plan Year (and as of his or her actual Postponed
Retirement Date) as if each such date were the Participant’s Postponed
Retirement Date.

      
         

        (c)           In
the event a Participant commences receipt of his or her Retirement Allowance
while in active service under the provisions of Section 8.4(b), such
commencement date shall be the Participant’s Annuity Starting Date for purposes
of Section 8, and the Participant shall receive a postponed Retirement Allowance
commencing on such date in an amount determined as if he or she had retired on
the last day of the preceding calendar year.  As of each succeeding
December 31 prior to the Participant’s actual Postponed Retirement Date (and as
of his or her actual Postponed Retirement Date), the Participant’s Retirement
Allowance shall be recomputed to reflect additional accruals.  The
Participant’s recomputed Retirement Allowance shall then be paid as of the
following January 1 (or, if applicable, as of his or her Postponed Retirement
Date).  The Participant’s recomputed Retirement Allowance shall then
be reduced by the Actuarial Equivalent value of the total payments of his or her
postponed Retirement Allowance made with respect to monthly payments which were
paid prior to each such recomputation to arrive at the Participant’s postponed
Retirement Allowance; provided that no such reduction shall reduce the
Participant’s postponed Retirement Allowance below the amount of postponed
Retirement Allowance payable to the Participant prior to the recomputation of
such Retirement Allowance.

      

    

    

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

    

    
    

    4.8           Special
Provision for Participants who were Hired Before December 8, 1974

    

    For Employees hired before December 8,
1974, the Basic Allowance payable upon any Retirement Date will, in no event, be
less in amount than the Basic Allowance to which such Employee would have been
entitled had the terms of the Plan prior to December 8, 1974 continued
unchanged, and for purposes of determining the Primary Insurance Amount the
Social Security Benefit Table as in effect of December 8, 1974 is
used.

    

    4.9           Non-duplication
of Benefits

    

    In addition to the reduction for a
Participant’s Non-Represented Basic Allowance set forth in Section 4.2, if a
Participant is entitled to receive, or upon application would be entitled to
receive, any pension or retirement benefits from any other plan to which the
Company or any Affiliate contributes (other than a social benefit program
maintained by any governmental jurisdiction on a compulsory basis, such as the
Social Security Act of the United States, or the New Jersey Resources
Corporation Employees’ Retirement Savings Plan) then, to the extent such
benefits are based on periods of employment included as Credited Service under
this Plan, the amount thereof shall be deducted from the amount of Retirement
Allowance otherwise payable under this Plan with respect to such period of
Credited Service.

     

    However, if the Participant contributed
toward such other benefit, the portion provided by his or her own contributions,
or in case of a Participant who is entitled to receive a Non-Represented
Additional Allowance, the amount of such Non-Represented Additional Allowance,
shall not be so deducted.  In the event that such other benefit is not
paid at the same time and manner as the benefits payable under this Plan, any
benefit provided under this Plan shall include such deduction made on an
equitable basis as determined by the Committee.

    

    4.10           Increased
Benefits for Retirees

    

    Effective January 1, 1981, Retirement
Allowance payments, both Basic and Additional Allowances, but excluding the
extra 20% Basic Allowance payable in the first year of retirement and any other
supplemental pension which is not payable for the Participant’s entire lifetime,
being made to a Participant who retired before January 1, 1981 (or to his or her
Beneficiary or Contingent Participant under an option elected in accordance with
Section 6 (In Event of Death) or Section 8 (Forms of Retirement Allowance)) were
increased by 4% for each year (including a fraction for each month) elapsed from
the earlier of the Participant’s Normal Retirement Date and his or her Annuity
Starting Date to January 1, 1981.

    

    Effective January 1, 1988, Retirement
Allowance payments, both Basic and Additional Allowances, but excluding the
extra 20% Basic Allowance payable in the first year of retirement and any other
supplemental pension which is not payable for the Participant’s entire lifetime,
being made to a Participant who retired before January 1, 1988 (or to his or her
Beneficiary or Contingent Participant under Section 6 (In Event of Death) or an
option elected in accordance with Section 8 (Forms of Retirement Allowance))
shall be increased by 2% for each year (including a fraction for each month)
elapsed from the later of (a) January 1, 1981 or (b) the earlier of the
Participant’s Normal Retirement Date and his or her Annuity Starting Date, to
January 1, 1988.

    

    Effective January 1, 1993, Retirement
Allowance payments, both Basic and Additional Allowances, but excluding the
extra 20% Basic Allowance payable in the first year of retirement and any other
supplemental pension which is not payable for the Participant’s entire lifetime,
being made to a Participant who retired before January 1, 1993 (or to his or her
Beneficiary or Contingent Participant under Section 6 (In Event of Death) or an
option elected in accordance with Section 8 (Forms of Retirement Allowance)
shall be increased by 1.5% for each year (including a fraction for each month)
elapsed from the later of (a) January 1, 1988 or (b) the Participant’s Annuity
Starting Date, to January 1, 1993.  In addition, for those who retired
during the period 1980-1987 an extra 1.5% increase will apply, and for those who
retired before 1980 an extra 3.5% increase will apply.

    

    4.11           Section
401(a)(17) Employees

    

    Unless otherwise provided under the
Plan, the Basic Retirement Allowance determined under Section 4.2 of each
“Section 401(a)(17) Employee” (as hereinafter defined) will be the greater of
the Basic Retirement Allowance determined for such Section 401(a)(17) Employee
under paragraph (a) or (b) below:

    

    (a)           the
Section 401(a)(17) Employee's Basic Retirement Allowance determined with respect
to the benefit formula applicable for the Plan Year beginning on or after
January 1, 1994, as applied to the Section 401(a)(17) Employee's total period of
Credited Service; or

    

    (b)           the
sum of:

    

    (i)           the
Section 401(a)(17) Employee's Basic Retirement Allowance as of the last day of
the last Plan Year beginning before January 1, 1994, frozen in accordance with
section 1.401(a)(4)-13 of the Income Tax Regulations, and

    

    (ii)           the
Section 401(a)(17) Employee's Basic Retirement Allowance determined under the
benefit formula applicable for the Plan Year beginning on or after January 1,
1994, as applied to such Section 401(a)(17) Employee's period of Credited
Service on or after January 1, 1994.

     

    
      A “Section 401(a)(17) Employee” means
an Employee whose current accrued Basic Retirement Allowance as of a date on or
after the first day of the first Plan Year beginning on or after January 1,
1994, is based on Compensation for a year beginning prior to the first day of
the first Plan Year beginning on or after January 1, 1994, that exceeded
$150,000.

      

    

    

    
      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    

    

    

     

    4.12           Delayed
Commencement of Retirement Allowance

    

    Notwithstanding the provisions of
Sections 4.1, 4.5, 4.6, 4.7, 7.1, and 7.2, effective as of October 1, 2004, in
the event the Annuity Starting Date of a Participant’s Retirement Allowance
otherwise required to commence on the Participant’s Normal Retirement Date, or
Postponed Retirement Date if applicable, is delayed because the Company is
unable to locate the Participant or for any other reason, the Company will
commence payment as soon as practicable thereafter or, if later, as soon as
practicable after the date the Participant is located.  Unless the
Participant elects an optional form of payment, as set forth in Section 8.2,
payment shall be in the normal form as set forth in Section 8.1 applicable to
the Participant on his or her Normal Retirement Date.  The Retirement
Allowance payable to the Participant as of his or her Annuity Starting Date
shall be of Actuarial Equivalent value to the Retirement Allowance otherwise
payable to the Participant on his or her Normal Retirement Date, or Postponed
Retirement Date if applicable.  Notwithstanding the foregoing
provisions of this Section 4.12, in no event will the Retirement Allowance of a
Participant be actuarially increased for any month under both this Section 4.12
and Section 4.7.

    

    In the event a Participant whose
Retirement Allowance is delayed beyond his or her Normal Retirement Date, or
Postponed Retirement Date if applicable, as described above dies prior to his or
her Annuity Starting Date, his or her surviving Spouse shall be entitled to
receive a death benefit under the provisions of Section 6.1 computed on the
basis of the Actuarial Equivalent value of the Retirement Allowance payable to
the Participant on his or her Normal Retirement Date, or Postponed Retirement
Date if applicable.

    

    

    
      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

    

    SECTION
5.  CONTRIBUTIONS

    

    5.1           Employee
Contributions

    

    Before June 1, 1984, Participants made
contributions of 2% of Compensation, on an elective basis, to the Additional
Allowance portion of the Plan.  Effective June 1, 1984, no further
contributions are to be made by any Participant.

    

    5.2           Withdrawal
of Employee Contributions

    

    A Contributor who has not reached his
or her Normal Retirement Date may elect to withdraw from the Additional
Allowance portion of the Plan as of the first day of any month by giving 60 days
advance notice to the Committee in writing.  In such case he or she
shall be paid his or her entire Additional Allowance Account.  If a
Contributor has completed at least five years (ten years before October 1, 1989)
of Service or was eligible for a normal Retirement Allowance at the time of
withdrawal, he or she will be entitled to the Company-provided portion, if any,
of his or her Additional Allowance.  For this purpose, the
Company-provided portion will be determined as the amount of Additional
Allowance which is not derived from the Participant’s own contributions based
upon the conversion, as prescribed by regulations, of the Participant’s
Additional Allowance Account to an annual pension payable for life.

    

    Payment of amounts under this Section
5.2 shall be made in the form of a life annuity, or if the Participant is
married, in the form of Option C under Section 8.2 with his or her Spouse as the
designated Contingent Participant.  However, if the Participant, and,
if applicable, the Spouse reject the annuity form of payment, then the payment
will be made in a lump sum.  Such rejection and election shall be made
according to the notice and waiver provisions of Section 8.1.

    

    A Contributor who has previously
withdrawn from the Additional Allowance portion of the Plan after completing
five years (ten years before October 1, 1989) of Service or after completing the
eligibility requirements for a normal Retirement Allowance will be entitled to
reinstate his or her Additional Allowance Account by repaying the full amount
previously withdrawn with interest at the rate of 5% per annum compounded
annually from the date of withdrawal to the date of repayment.

    

    5.3           Company
Contributions

    

    The Company on behalf of the Employers
intends to contribute to the Retirement Allowance Fund over a period of time and
from time to time such amounts as may be determined by actuarial calculations to
provide the benefits payable under the Plan, other than benefits payable solely
from Employee contributions.  Such calculations shall be made by the
Actuary.

    

    5.4           Administration
Expense

    

    Effective December 8, 1995, the Plan’s
administrative expenses shall be paid out of Plan assets.  To the
extent such expenses are not paid from Plan assets, they shall be paid by an
Employer.

    

    5.5           Forfeitures

    

    Any forfeiture arising under the Plan
shall not be applied to increase the benefits any Participant would otherwise
receive under the Plan but shall be applied to reduce the Employer contributions
under the Plan.

    

    5.6           Refund
of Employer Contributions

     

    All Employer contributions under the
Plan are made on the condition that current tax deductions are allowed for such
contributions under Section 404 of the Internal Revenue Code.  Subject
to the following provisions of this Section 5.6, any contribution by the
Employer under the Plan which is

    

    (1)           made
by mistake of fact, or

    

    (2)           conditioned
upon the current deductibility of the contribution under Section 404 of the
Internal Revenue Code, to the extent such current deduction is disallowed or is
determined not to be currently deductible,

    

    shall be returned to the Employer, upon
the Employer’s request, not later than one year after the date such contribution
was made by mistake of fact or the current deduction is disallowed or determined
not to be currently deductible, as the case may be.  No amount shall
be returned to the Employer under this Section unless the contribution is
attributable to a good faith mistake of fact or a good faith mistake in
determining the current deductibility of the contribution; and any amount
returned to the Employer shall be limited to the excess of the amount
contributed over the amount that would have been contributed had there not
occurred a mistake of fact or mistake in determining current
deductibility.  Earnings attributable to the excess may not be
returned, and losses attributable thereto must reduce the amount
returned.

    

    

    
      
        
           

        

        
          15

          
            

          

        

        
           

        

      

    

    

    SECTION
6.  IN EVENT OF DEATH

    

    6.1           Prior
to Retirement

    

    If a Participant, other than a
Participant who terminated employment before October 1, 1976, dies before his or
her Annuity Starting Date, a monthly benefit shall be payable to the
Participant’s surviving Spouse provided the Participant had either completed at
least five years of Service (ten years before October 1, 1989) or attained his
or her Normal Retirement Age and the Participant and Spouse have been married
throughout the one year period ending on the date of the Participant’s
death.  If the Participant was not in active service on or after
January 1, 1998, the benefit payable to the surviving Spouse shall commence on
the first day of the month coincident with or following the later of the date on
which the Participant would have attained age 55 or the date of the
Participant’s death.  Otherwise, if the Participant dies prior to his
or her Annuity Starting Date, the benefit payable to the surviving Spouse (or
Contingent Participant if the Participant waives this pre-retirement survivor
benefit pursuant to Section 8.1(c)) shall commence as of the first day of the
month coincident with or next following the Participant’s death.

    

    Except as otherwise provided with
respect to death occurring while the Participant is in receipt of a Disability
Retirement Allowance, the amount of the benefit payable to the surviving Spouse
shall be equal to 50% of the amount the Participant would have received if he or
she had terminated employment on the date of his or her death and elected to
have his or her benefit commence on his or her Normal Retirement Date or the
first day of the month following his or her date of death, if later, under the
normal form of payment for married Participants set forth in Section
8.1(b).  However, if within the 180-day period (90-day period for
Annuity Starting Dates prior to June 1, 2009) prior to his or her Annuity
Starting Date a Participant has elected Option A or Option B with his or her
surviving Spouse as Contingent Participant under Section 8.2, such optional form
of payment shall be used for computing the Spouse’s Retirement Allowance instead
of the normal form of payment for married Participants set forth in Section
8.1(b).

    

    If a Participant dies prior to his or
her Annuity Starting Date and is not married, or has not been married for one
year or has not either completed five years of Service or attained his or her
Normal Retirement Age, the only death benefit payable under the Plan is based
upon the value of the Participant’s Additional Allowance Account, if
any.  The value of such Account will be payable in the form of an
annuity for the life of the Spouse unless the Spouse elects
otherwise.  If there is no Spouse or the Spouse rejects the annuity
form of payment or payment is to made to a Beneficiary who is not the Spouse,
such value will be payable in a lump sum.  Payment to a non-Spouse
will commence as of the first day of the month following the date of the
Participant’s death.  Payment to a Spouse in the appropriate form will
commence on the Participant’s Normal Retirement Date unless the Spouse elects an
earlier commencement date, which may be the first day of any month after the
Participant’s date of death and prior to his or her Normal Retirement
Date.

    

    Notwithstanding the foregoing, if a
Participant eligible for a Disability Retirement Allowance elects to retire
under Section 3.3 (Disability Retirement Date), elects a form of payment and, if
applicable, waives the pre-retirement survivor benefit pursuant to Section
8.1(c) and dies before his or her Annuity Starting Date, a survivor Retirement
Allowance will be paid to his or her Contingent Participant (who may be the
Participant’s Spouse) in accordance with the Participant’s elections made
pursuant to such Section 8.1(c).

    

    Notwithstanding the foregoing, if a
Participant dies on or after January 1, 2007 while performing “services in the
uniformed services” (as defined in Chapter 43 of Title 38, United States Code)
where such Participant’s right to reemployment with the employer is protected by
law, the surviving Spouse of such Participant shall be entitled to a Spouse’s
Retirement Allowance in accordance with the provisions of this Section 6.1 as
though the Participant had resumed employment with the Employer on the date of
death and then terminated employment with the Employer immediately
thereafter.

    

    6.2           After
Retirement

    

    If a Participant’s death occurs after
his or her Annuity Starting Date and a benefit is not payable to his or her
surviving Spouse pursuant to Section 8.1(b) or to his or her Contingent
Participant or Beneficiary pursuant to Section 8.2, or in the event of the death
of his or her survivor who had been receiving benefits in accordance with
Section 8.1(b) or Section 8.2 (Optional forms), his or her Beneficiary will be
entitled to receive a lump sum payment equal to the Participant’s Additional
Allowance Account, if any.

    

    6.3           Designation
of Beneficiary

    

    The Participant’s surviving Spouse
shall be the Beneficiary entitled to receive all benefits payable upon the death
of the Participant under Section 6.1 or 6.2; provided, however, that if there is
no surviving Spouse, or if the surviving Spouse had consented in writing to the
designation of another Beneficiary (including a secondary Beneficiary, if the
Participant so desires) with respect to the distribution of the Additional
Allowance Account (which consent was given at least one year after the date of
marriage, acknowledged the effect of such designation and was witnessed by a
Plan representative or notary public), the Beneficiary entitled to receive
payments after the Participant’s death shall be the person or persons designated
as Beneficiary by the Participant on the appropriate form completed by the
Participant and filed with the Committee.  Subject to the foregoing
with respect to spousal consent, a Participant may change his or her Beneficiary
from time to time on an appropriate form filed with the Committee without the
consent of the previously designated Beneficiary; provided, however, that a
Participant may elect a Beneficiary other than a Spouse only for that portion of
a Plan benefit attributable to the Additional Allowance Account.

    

    In the event that, when death benefits
become payable, the Beneficiary is deceased, they shall become payable instead
to the Participant’s secondary Beneficiary, or if no Beneficiary has been
designated or survives, then to the Participant’s surviving Spouse, if any,
otherwise to the Participant’s estate.  Payment under this Section 6.3
and Section 6.1 shall be made upon the presentation of such waivers or releases
of taxing authorities as the Trustee or Committee may reasonably
request.

    

    
      
        
           

        

        
          16

          
            

          

        

        
           

        

      

    

    

    SECTION
7.  IN EVENT OF TERMINATION OF EMPLOYMENT

    

    7.1           Non-vested
Participants

    

    If the employment of a Participant who
is not a Contributor terminates other than by death or retirement before he or
she has completed five years of Service, there are no benefits payable to him or
her under the Plan.

    

    If the employment of a Participant who
is a Contributor terminates other than by death or retirement before he or she
has completed five years of Service, he or she shall be entitled to his or her
Additional Allowance Account.  Such payment shall commence as of the
Participant’s Normal Retirement Date, unless the Participant elects to receive
such payment within 60 days after such termination of
employment.  Such payment shall be made in the applicable normal form
of payment under Section 8.1(a) or (b).  However, if the Participant,
and, if applicable, the Spouse reject the normal form of payment, then the
payment will be made in a lump sum.  Such election and rejection shall
be made according to the notice and consent provisions of Section
8.3.

    

    7.2           Vested
Participants

    

    If the employment of a Participant
terminates on or after October 1, 1989 other than by death or retirement after
he or she has completed five years of Service or has attained age 65, he or she
shall be entitled to his or her Accrued Retirement Allowance commencing on his
or her Normal Retirement Date.

    

    In lieu of the Retirement Allowance
commencing at Normal Retirement Date, the Participant, provided he or she had
completed at least 20 years of Credited Service at the time of termination, may
elect a reduced Retirement Allowance to commence on the first day of any month
within the 10 years ending on his or her Normal Retirement Date.  The
amount of such reduction shall be determined pursuant to paragraph (b) of
Section 4.5 (Early Retirement Allowance).

    

    Such a Participant may irrevocably
elect, with the written consent of the Participant’s Spouse (if any) which is
witnessed by a Plan representative or notary public, to receive a refund of his
or her Additional Allowance Account within 60 days after the later of such
termination or election and have the portion, if any, of the benefit provided
under Section 4.3 (Additional Allowance) which is attributable to Company
contributions payable in accordance with this Section 7.2.

    

    7.3           Reemployment
Prior to Having a Break in Service

    

    Vested Participant or Former Vested
Participant

    

    If a (i) terminated Participant
entitled to but not in receipt of a Retirement Allowance, or (ii) former
Participant who received a lump settlement in lieu of a Retirement Allowance, or
a former employee who was never a Participant is reemployed before incurring a
Break in Service, his or her Credited
Service and Service shall be determined as provided in Sections 1.20 and
1.48.

    

    Notwithstanding the foregoing, ,if a
Participant received a lump sum settlement in lieu of a Retirement Allowance,
the Credited Service to which he or she was entitled at the time
of his or her termination of service
shall not be restored to him or her.

    

    Subject to the provisions of Section
2.5, if the Participant is reemployed as an Employee, he or she may become an
active Participant as of the first day of the month following his or her date of
reemployment, provided he or she is then an Employee.

    
       

      Non-Vested Participant

      

      If a terminated non-vested Participant
is reemployed before incurring a Break in Service, his or her Credited Service
and Service shall be determined as provided in Sections 1.20 and
1.48.

      

      Subject to the provisions of Section
2.5, if the Participant is reemployed as an Employee, he or she may become an
active Participant as of the first day of the month following his or her date of
reemployment, provided he or she is then an Employee.

      

      Former Employee

      

      If a former employee who was never a
Participant is reemployed before incurring a Break in Service, his or her
Credited Service and Service shall be determined as provided in Sections 1.20
and 1.48.

      

      Subject to the provisions of Section
2.5, if the former Employee is reemployed as an Employee, he or she may become
an active Participant as of the first day of the month following his or her date
of reemployment or the date as of which he or she may become a Participant in
accordance with Section 2.1.

      

      7.4           Reemployment
of a Vested Participant or Former Vested Participant After Having A Break in
Service

      

      Subject to provisions of Section 2.5,
if a retired or terminated Participant entitled to but not in receipt of a
Retirement Allowance, or a former Participant who received a lump sum settlement
in lieu of a Retirement Allowance, is reemployed with an Employer after having
had a Break in Service, the following shall apply:

      

        (a)           Upon
completion of one year of Service following the Break in Service, the Service to
which he or
she was previously
entitled shall be restored to him or her, and if reemployed as an Employee, he or she shall be restored as a
Participant as of the first day of the month following his or her date of reemployment,
provided he or she is then an Employee.

         

        
          (b)           Any
Credited Service to which the Participant was entitled at the time of his or her termination of service
shall be restored to him or her, except that such Credited Service shall not be
restored if the Participant received a lump sum
settlement by the end of the second Plan Year following the Plan Year in
which his or
her termination
occurred.

            
              
                 

              

              
                17

                
                  

                

              

              
                 

              

            

(c)           Upon
later termination or retirement of a Participant whose previous Credited Service
has been restored under this Section, his or her Retirement Allowance
shall be based on the benefit formula then in effect and his or her Compensation
and Credited Service before and after the period when he or she was not in the
service of an Employer and shall be reduced, if applicable, but not below zero,
by an amount of Actuarial Equivalent value to any lump sum settlement received
upon his or her prior termination.

        

      

    

    

    However, in no event shall the
reduction provided for in the preceding sentence exceed the portion of the
Participant's Retirement Allowance based on the period of Credited Service
included in the calculation of the lump sum payment.

    

    (d)           Upon
later termination or retirement of a Participant whose Credited Service has been
restored under this Section but who was not eligible to resume active
participation in this Plan at time of rehire, his or her Retirement Allowance
shall be based on the benefit formula in effect on his or her previous date of
termination (including, if applicable, the Early Retirement Allowance reduction
factors in effect at such time) and his or her Final Average Compensation and
Credited Service determined as of that date and shall be reduced, if applicable,
but not below zero, by an amount of Actuarial Equivalent value to any lump sum
settlement received upon his or her prior termination.  However, in no
event shall the reduction provided for in the preceding sentence exceed the
portion of the Participant’s Retirement Allowance based on the period of
Credited Service included in the calculation of the lump sum
payment.

     

    7.5           Reemployment
of a Non-Vested Participant After Having a Break in Service

    

    Subject to the provisions of Section
2.5, if a former Participant who is not entitled to a Retirement Allowance is
reemployed, either as an Employee or as an employee of an Affiliate not
participating in the Plan, after having had a Break in Service, the following
shall apply:

    

    (a)           Upon
completion of one year of Service following the Break in Service, he or she shall again
become a Participant as of the first of the month after his or her date of reemployment as
an employee, provided he or she is then an employee, but only if his or her
prior Service is
restored under paragraph (b) below.

    

    (b)           Upon his or her restoration
to participation, the Service to which he or she was previously
entitled shall be restored to him or her if his or her period of
Break in Service does not equal or exceed the greater of (i) five years or (ii)
his or her period of Service before his or her Break in Service determined at
the time of the Break in Service, excluding any Service disregarded under this
Section 7.5 by reason of any earlier Break in Service.  If any such
former Participant was reemployed prior to October 1, 1985, or if he or she had
a Break in Service on September 30, 1985 and his or her period of Break in
Service as of that date would have resulted in the exclusion of his or her previously accrued
Service under the Plan provisions then in effect, then clause (i) of the
preceding sentence shall not be applicable, and his or her previously accrued
Service shall be excluded.

    

    (c)           Any
Credited Service to which the Participant was entitled at the time of his or her
termination of service which is included in the Service so restored shall be
restored to him or her.

    

    (d)           Upon
later termination or retirement of a Participant whose previous Credited Service
has been restored under this Section and who was eligible to resume active
participation in the Plan on his or her date of rehire, his or her Retirement
Allowance, if any, shall be based on the benefit formula then in effect
(including, if applicable, the Early Retirement Allowance reduction factors in
effect at such time) and his or her Compensation and Credited Service before and
after the period when he or she was not an Employee.

    

    (e)           Upon
later termination or retirement of a Participant whose previous Credited Service
has been restored under this Section but who was not eligible to resume active
participation in this Plan at time of rehire, his or her Retirement Allowance,
if any, shall be based on the benefit formula in effect on his or her previous
date of termination (including, if applicable, the Early Retirement Allowance
reduction factors in effect at such time) and his or her Final Average
Compensation and Credited Service determined as of that date.

    

    7.6           Reemployment
of a Non-Participant After Having a Break in Service

    

    Subject to the provisions of Section
2.5, if an employee who was never a Participant is reemployed as an Employee of
an Employer, after having had a Break in Service, upon completion of one year of
Service following the Break in Service, the Service to which he or she was
previously entitled under Section 1.48 shall be restored to him or her if: (a)
he or she would be entitled to nonforfeitable benefits under the Plan if he or
she were a Participant, or (b) his or her period of Break in Service does not
equal or exceed the greater of (i) five years or (ii) his or her period of
Service before his or her Break in Service, determined at the time of the Break
in Service, excluding any Service disregarded under this Section by reason of
any earlier Break in Service.

    

    7.7           Reemployment
and Repayment of Additional Allowance Account

    

    If a Participant who has received a
refund of his or her Additional Allowance Account shall be reemployed as an
Employee, he or she may repay to the Retirement Allowance Fund the full amount
distributed to him or her on termination with interest at the rate of 5% per
annum compounded annually, from the date of distribution to the date of
repayment and so reinstate his or her Additional Allowance Account.

     

    7.8           Amendment
of Vesting Schedule

    

    No amendment shall be made which has
the effect of reducing the nonforfeitable percentage of the Accrued Allowance of
a Participant below the nonforfeitable percentage computed under the Plan as in
effect on the date on which the amendment is adopted or, if later, the date on
which the amendment becomes effective.  Notwithstanding anything in
this Section 7 to the contrary, in the event that an amendment to the Plan is
adopted which would directly or indirectly affect the computation of the
nonforfeitable percentage of a Participant’s Accrued Retirement Allowance, each
Participant who, as of the effective date of the amendment, has completed at
least three years of Service shall be permitted to elect to have the
nonforfeitable percentage of his or her Accrued Retirement Allowance determined
without regard to such amendment; provided, however, that no such election need
be provided to any Participant whose nonforfeitable percentage of his or her
Accrued Retirement Allowance, as determined under the amendment, at all times
will be equal to or greater than such percentage determined without regard to
the amendment.

    

    

    
      
        
           

        

        
          18

          
            

          

        

        
           

        

      

    

    

    SECTION
8. FORMS OF RETIREMENT ALLOWANCE

    

    8.1           Normal
Form of Payment

    

    (a)           If
the Participant was an employee on or after September 1, 1974 and is not married
on his or her
Annuity Starting Date, his or her Retirement
Allowance shall be payable in monthly installments ending with the last monthly
payment before death, unless the Participant was an employee on or after
September 1, 1974 and has elected an optional form of payment as provided in
Section 8.2.

    

    (b)           If
the Participant was an employee on or after September 1, 1974 and is married on
his or her Annuity Starting Date and if he or she has not elected an optional
form of payment as provided in Section 8.2, the Retirement Allowance payable
shall be in the form of Option C under Section 8.2 with his or her Spouse as the
designated Contingent Participant.

    

    (c)           Disability
Retirement Allowance.

    

    (i)           In
the case of a Participant who is entitled to a Disability Retirement Allowance
pursuant to Section 4.6 and who elects a Disability Retirement Date, his or her
Disability Retirement Allowance shall be paid in the form described in paragraph
(a) or (b) above, whichever is applicable at the date his or her Disability
Retirement Allowance commences, unless the Participant waives the normal form
and elects instead an optional form of payment with spousal consent, if
applicable, which consent was given at least one year after the date of
marriage.  Should the Participant obtain a new Spouse after having
made this election and while a Disability Retirement Allowance remains payable,
such election shall become void and the provisions of paragraph (b) above shall
apply unless and until the Participant makes a new election and obtains the
consent of the new Spouse.  This election will apply solely with
respect to any death benefit payable under Section 6 due to the Participant’s
death occurring while he or she is receiving a Disability Retirement
Allowance.  The provisions of Section 4.6 relating to the continuance
of Disability Retirement Allowance payments shall apply and upon the termination
of the Disability Retirement Allowance, any elections made under this Section
8.1(c) with respect to the Disability Retirement Allowance shall
expire.

    

    (ii)           Upon
attaining his or her Annuity Starting Date, his or her Retirement Allowance
shall be recalculated in accordance with paragraph (a) or (b) above, whichever
is applicable at that date, or in accordance with the provisions of Section 8.2
if the Participant elects an optional form of payment.

    

    (iii)           The
requirements of Section 8.3 shall apply to the election to commence a Disability
Retirement Allowance and the form of payment as though the Disability Retirement
Date were an Annuity Starting Date.

    

    In the
event a Participant is not entitled to any Retirement Allowance upon his or her
termination of employment, he or she shall be deemed cashed-out as of the date
he or she terminated service.  However, if a Participant described in
the preceding sentence is subsequently reemployed by an Employer or an
Affiliate, the provisions of Section 7 shall apply to him or her without regard
to such sentence.

     

    
      8.2           Optional
Forms of Payment

      

      Any Participant may, subject to the
provisions of Section 8.3, elect to convert the Retirement Allowance otherwise
payable to him or her into an optional form of payment as provided in one of the
options named below.

      

      Option
A:

      

      (i)           The
amount of Retirement Allowance to be paid to the Participant shall be reduced,
but after his or her death 100% of such reduced Retirement Allowance shall be
paid for life to his or her designated Contingent Participant.

      

      (ii)           For
Participants who terminated employment before December 1, 2003, the amount of
reduced Retirement Allowance payable to the Participant shall be 80% of the
amount otherwise payable to him or her in the normal form for unmarried
Participants set forth in Section 8.1(a).  Such reduced Retirement
Allowance shall be further reduced (or increased) by 1% for each year by which
the Participant’s Contingent Participant is more than five years younger (or
older) than the Participant.

      

      (iii)           For
Participants who terminate employment on or after December 1, 2003, the amount
of reduced Retirement Allowance payable to the Participant shall be 84% of the
amount otherwise payable to him or her in the normal form for unmarried
Participants set forth in Section 8.1(a).  Such reduced Retirement
Allowance shall be further reduced (or increased) by 0.6% for each year by which
the Participant’s Contingent Participant is younger (or older) than the
Participant and shall also be reduced (or increased) by 0.5% for each year the
Participant is older (or younger) than age 65.

      

      (iv)           In
no event shall the Retirement Allowance payable under this option be greater
than that payable in the normal form for unmarried Participants set forth in
Section 8.1(a).

      
 

    

    
      
        
           

        

        
          19

          
            

          

        

        
           

        

      

    

     

    Option
B:

    

    (i)           Solely
for Participants whose Annuity Starting Date is on or after January 1, 2008, the
amount of Retirement Allowance to be paid to the Participant shall be reduced,
but after his or her death 75% of such reduced Retirement Allowance shall be
paid for life to his or her designated Contingent Participant.

    

    (ii)           For
Participants who terminated employment before December 1, 2003, the amount of
reduced Retirement Allowance payable to the Participant shall be 85% of the
amount otherwise payable to him or her in the normal form for unmarried
Participants set forth in Section 8.1(a).  Such reduced Retirement
Allowance shall be further reduced (or increased) by 0.75% for each year by
which the Participant’s Contingent Participant is more than five years younger
(or older) than the Participant.

    

    (iii)           For
Participants who terminate employment on or after December 1, 2003, the amount
of reduced Retirement Allowance payable to the Participant shall be 88.0% of the
amount otherwise payable to him or her in the normal form for unmarried
Participants set forth in Section 8.1(a).  Such reduced Retirement
Allowance shall be further reduced (or increased) by 0.5% for each year by which
the Participant’s Contingent Participant is younger (or older) than the
Participant and shall also be reduced (or increased) by 0.4% for each year the
Participant is older (or younger) than age 65.

    

    (iv)           In
no event shall the Retirement Allowance payable under this option be greater
than that payable in the normal form for unmarried Participants set forth in
Section 8.1(a).

     

    Option
C:

    

    (i)           The
amount of Retirement Allowance to be paid to the Participant shall be reduced,
but after his or her death 50% of such reduced Retirement Allowance shall be
paid for life to his or her designated Contingent Participant.

    

    (ii)           For
Participants who terminated employment before December 1, 2003, the amount of
reduced Retirement Allowance payable to the Participant shall be 90% of the
amount otherwise payable to him or her in the normal form for unmarried
Participants set forth in Section 8.1(a).  Such reduced Retirement
Allowance shall be further reduced (or increased) by 0.5% for each year by which
the Participant’s Contingent Participant is more than five years younger (or
older) than the Participant.

    

    (iii)           For
Participants who terminate employment on or after December 1, 2003, the amount
of reduced Retirement Allowance payable to the Participant shall be 92.5% of the
amount otherwise payable to him or her in the normal form for unmarried
Participants set forth in Section 8.1(a).  Such reduced Retirement
Allowance shall be further reduced (or increased) by 0.3% for each year by which
the Participant’s Contingent Participant is younger (or older) than the
Participant and shall also be reduced (or increased) by 0.3% for each year the
Participant is older (or younger) than age 65.  However, in no event
shall the Retirement Allowance payable under this option be less than the
Actuarial Equivalent value of the normal form for unmarried Participants set
forth in Section 8.1(a).

    

    (iv)           In
no event shall the Retirement Allowance payable under this option be greater
than that payable in the normal form for unmarried Participants set forth in
Section 8.1(a).

    

    Option
D:

    

    (i)           The
amount of Retirement Allowance to be paid to the Participant shall be reduced,
but in the event of his or her death prior to 120 months after his or her
Annuity Starting Date (or the date as of which payments commence in the case of
an election of an optional form of payment prior to his or her Normal Retirement
Date pursuant to Section 8.1(c)), the same reduced amount shall be paid for the
remainder of such period of 120 months to his or her designated
Beneficiary.

    

    (ii)           For
Participants who terminated employment before December 1, 2003, the amount of
reduced Retirement Allowance payable to the Participant shall be 93% of the
amount otherwise payable to him or her in the normal form for unmarried
Participants set forth in Section 8.1(a) if Retirement Allowance payments are
commencing on or after his or her Normal Retirement Date.  If payments
are commencing earlier, the 93% is increased by 0.5% for each year by which the
Annuity Starting Date (or the date as of which payments commence in the case of
an election of an optional form of payment prior to his or her Normal Retirement
Date pursuant to Section 8.1(c)) precedes the Participant’s Normal Retirement
Date, subject to a maximum of 98% for retirement at or before age
55.

    

    (iii)           For
Participants who terminate employment on or after December 1, 2003, the amount
of reduced Retirement Allowance payable to the Participant shall be 94.5% of the
amount otherwise payable to him or her in the normal form for unmarried
Participants set forth in Section 8.1(a) if Retirement Allowance payments are
commencing on his or her Normal Retirement Date.  If payments are
commencing earlier, the 94.5% is increased by 0.5% for each year by which the
Annuity Starting Date (or the date as of which payments commence in the case of
an election of an optional form of payment prior to his or her Normal Retirement
Date pursuant to Section 8.1(c)) precedes the Participant’s Normal Retirement
Date, subject to a maximum of 98% for retirement at or before age
55.  For Annuity Starting Dates that occur subsequent to the
Participant’s Normal Retirement Date, the 94.5% is decreased by 0.5% for each
year by which the Annuity Starting Date is after the Participant’s Normal
Retirement Date.

     

    
      Option
E:

      

      The amount of Retirement Allowance
payable to the Participant shall be determined under the normal form of payment
for an unmarried Participant.  This is an optional form of payment for
married Participants.

      
         

        Option
F:

        

        Solely if the monthly Retirement
Allowance is less than $25.00, a lump sum payment of Actuarial Equivalent value
to the Retirement Allowance otherwise payable to the Participant.

        

    

    
      
        
           

        

        
          20

          
            

          

        

        
           

        

      

    

    

    8.3           Election
of Optional Forms of Payment

    

    (a)           A
married Participant's election of any optional form of payment shall only be
effective if Spousal Consent to the election is received by the Committee,
unless:

    

    (i)           the
option provides for monthly payments to his or her Spouse for life after the
Participant's death in an amount equal to at least 50 percent but not more than
100 percent of the monthly amount payable under the option to the Participant,
and

    

    (ii)           the
option is of Actuarial Equivalent value to the normal form of payment for
married Participants set forth in Section 8.1(b); or

    

    (iii)           solely
in the case of Option F, the present value of the Retirement Allowance does not
exceed $3,500.

    

    (b)           The
Committee shall furnish to each Participant a written explanation in
nontechnical language of the terms and conditions of the Retirement Allowance
payable to the Participant in the normal and optional forms described in
Sections 8.1 and 8.2.  Such explanation shall include a general
description of the eligibility conditions for, and the material features and
relative values of, the optional forms of payment under the Plan, any rights the
Participant may have to defer commencement of his or her Retirement Allowance,
the consequences of failing to defer, the requirement for Spousal Consent as
provided in paragraph (a) above, and the right of the Participant to make, and
to revoke, elections under Section 8.2.

    

    (c)           The
Committee must provide the notice required by paragraph (b) no more than 180
days (90 days for Annuity Starting Dates prior to June 1, 2009) and no less than
30 days prior to the Participant's Annuity Starting Date. A Participant's
Annuity Starting Date may not occur less than 30 days after receipt of the
notice.  An election under Section 8.2 shall be made on a form
provided by the Committee and may be made during the 180-day period (90-day
period for Annuity Starting Dates prior to June 1, 2009) ending on the
Participant's Annuity Starting Date, but not prior to the date the Participant
receives the written explanation described in paragraph (b).

    

    (d)           Notwithstanding
the provisions of paragraph (c) above, a Participant may, after having received
the notice, affirmatively elect to have his or her benefit commence sooner than
30 days following his or her receipt of the notice, provided all of the
following requirements are met:

    

    (i)           the
Committee clearly informs the Participant that he or she has a period of at
least 30 days after receiving the notice to decide when to have his or her
benefits begin and, if applicable, to choose a particular optional form of
payment;

    

    (ii)           the
Participant affirmatively elects a date for his or her benefits to begin and, if
applicable, an optional form of payment, after receiving the
notice;

     

    (iii)           the
Participant is permitted to revoke his or her election until the later of his or
her Annuity Starting Date or seven days following the day he or she received the
notice;

    

    (iv)           payment
does not commence less than seven days following the day after the notice is
received by the Participant; and

    

    (v)           the
Participant's Annuity Starting Date is after the date the notice is
provided.

    

    (e)           The
following rules and requirements must be met in order for the election of an
optional form of payment under Section 8.2 to be effective:

    

    (i)           The
election must be in writing on such form as shall be required by the Committee,
and must contain all of the following information:

    

    (A)           The
date on which the option is to become effective, which date must not be before
the Participant’s Normal, Early or Disability Retirement Date.

    

    (B)           The
name, relationship, sex and date of birth of the designated Contingent
Participant accompanied by proof thereof satisfactory to the Committee in the
case of Option A, B or C.

    

    (C)           The
designation of a Beneficiary in accordance with Section 6.3 (Designation of
Beneficiary) in the case of Option D.

    

    (f)           An
election of an option under Section 8.2 may be revoked on a form provided by the
Committee, and subsequent elections and revocations may be made at any time and
from time to time during the election period specified in paragraph (c) or (d)
above, whichever is applicable.  An election of an optional form of
payment shall be effective on the Participant's Annuity Starting Date or
Disability Retirement Date, as the case may be, and may not be modified or
revoked after his or her Annuity Starting Date or Disability Retirement Date
unless otherwise provided under paragraph (d) above. However, the election of an
optional form of payment with respect to a Disability Retirement Date will
automatically expire when the Participant is no longer eligible for a Disability
Retirement Allowance pursuant to Section 3.3.  A revocation of any
election shall be effective when the completed form is filed with the
Committee.  If a Participant who has elected an optional form of
payment dies before the date the election of the option becomes effective, the
election shall be revoked except as provided in Section 6.1.  If the
Beneficiary or Contingent Participant designated under an option dies before the
date the election of the option becomes effective, the election shall be
revoked.  In the case of Option D under Section 8.2, if the designated
Beneficiary predeceases the Participant prior to 120 months after the Annuity
Starting Date (or the date as of which payments commence in the case of an
election of an optional form of payment prior to his or her Normal Retirement
pursuant to Section 8.1(c)), the Participant may designate a new
Beneficiary.

    

    (g)           The
optional form of Retirement Allowance shall apply to the total Retirement
Allowance which the Participant is entitled to receive under the Plan and may
not be elected to apply only to a part of his or her Retirement Allowance under
the Plan; provided, however, that a Participant who remains in service after his
or her Normal Retirement Date who does not elect to defer commencement of his or
her Additional Allowance until his or her Postponed Retirement Date, may elect a
different form of payment for his or her Basic Allowance than he or she elected
for his or her Additional Allowance.

     

    

    
      
        
           

        

        
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      (h)           Notwithstanding
the foregoing provisions of this Section 8.3, in the event a Participant whose
Annuity Starting Date is on or after October 1, 2004 elects an Annuity Starting
Date that precedes the date he or she is provided the notice described in
Section 8.3(b), (the “retroactive Annuity Starting Date”), the Participant may
elect to have his or her retirement allowance commence as of such retroactive
Annuity Starting Date provided the following requirements are met:

       

    

    (i)           the
Participant’s retroactive Annuity Starting Date is on or after the date he or
she terminates employment with all Employers and Affiliates;

    

    (ii)           the
Participant’s benefit must satisfy the provisions of Section 415 and 417(e)(3)
of the Code, both at the retroactive Annuity Starting Date and at the actual
commencement date, except that if payments commence within 12 months of the
retroactive Annuity Starting Date, the provisions of Section 415 of the Code
need only be satisfied as of the retroactive Annuity Starting Date;

    

    (iii)           a
payment equal in amount to the payments that would have been received by the
Participant had his or her benefit actually commenced on his or her retroactive
Annuity Starting Date, plus interest at the 30-day money market rate, as
reported in the Wall Street Journal, for January 1 of the calendar year in which
the retroactive Annuity Starting Date occurs, shall be paid to the Participant
on his or her actual commencement date;

    

    (iv)           Spousal
Consent to the retroactive Annuity Starting Date is required for such election
to be effective unless:

    

    (A)           the
amount of survivor benefit payable to the Spouse determined as of the
retroactive Annuity Starting Date under the form elected by the Participant is
no less than the amount the Spouse would have received under Option C of Section
8.2 with the Spouse as the designated Contingent Participant if the first day of
the month in which payments commence were substituted for the retroactive
Annuity Starting Date;

    

    (B)           the
Participant’s Spouse on his or her retroactive Annuity Starting Date is not his
or her Spouse on the first day of the month in which payments commence and is
not treated as his or her Spouse under a qualified domestic relations
order;

    

    (C)           due
to an administrative error as determined by the Committee on a basis uniformly
applicable to all Participants similarly situated, the Participant was not
provided the written explanation as described in Section 8.3(b) on a timely
basis, or

    

    (D)           the
Participant is entitled to a Disability Retirement Allowance and such payments
would otherwise commence after the first day of the month for which the
Participant receives benefits under the Social Security Act;

    

    (v)           the
Participant’s election is made within the time period prescribed by the
Committee; provided, however such period may not extend beyond 180 days (90 days
for Annuity Starting Dates prior to June 1, 2009) following the date the written
explanation as described in Section 8.3(b) is provided to the Participant;
and

    

    (vi)           distributions
commence no earlier than seven days or later than 180 days (90 days for Annuity
Starting Dates prior to June 1, 2009) after the date such written explanation is
provided to the Participant, and the Participant’s election is made after he or
she is provided such written explanation and before the date distributions
commence.  For purposes of determining (A) the election period
described in Sections 8.3(c), (d), and (f) with respect to the timing of the
notice and consent requirements and (B) the effective date of an election made
pursuant to the provisions of this subparagraph (vii), the date the distribution
of the benefit based on the retroactive Annuity Starting Date commences shall be
substituted for the Participant’s Annuity Starting Date.  A
distribution shall not be deemed to violate the requirements of this
subparagraph (vii) merely because, due solely to administrative delay, it
commences more than 180 days (90 days for Annuity Starting Dates prior to June
1, 2009) after the date such written explanation is provided to the
Participant.

     

    
      8.4           Commencement
of Payments

      

      (a)           Except
as otherwise provided in Section 6 or this Section 8, payment of a Participant's
Retirement Allowance shall begin as soon as administratively practicable
following the latest of (i) the Participant's 65th birthday, (ii) the fifth
anniversary of the date on which he or she became a Participant, or (iii) the
date he or she terminates service with the Company and all Affiliates (but not
more than 60 days after the close of the Plan Year in which the latest of (i),
(ii) or (iii) occurs).

      

      (b)           Notwithstanding
the preceding paragraph, in the case of a Participant who owns (or is considered
as owning within the meaning of Section 318 of the Code) either more than 5
percent of the outstanding stock of the Company or stock possessing more than 5
percent of the total combined voting power of all stock of the Company (as
defined in Section 416(i) of the Code), payment of such Participant’s Retirement
Allowance shall begin not later than April 1 of the calendar year following the
calendar year in which he or she attains age 701⁄2..

      

      (c)           Notwithstanding
paragraph (a) above, in the case of a Participant who is not a 5-percent owner
(as provided under the preceding paragraph), payment of such Participant’s
Retirement Allowance shall begin not later than April 1 of the calendar year
following the later of the calendar year in which the Participant attains age
701⁄2 and the calendar year in which his or her employment terminates in
accordance with the provisions of Section 4.7(c).

      

      8.5           Distribution
Limitation

      

      Notwithstanding any other provision of
this Section 8, all distributions from this Plan shall conform to the
regulations issued under Section 401(a)(9) of the Code and Regulations Section
1.401(a)(9)- 2 through -9, including the incidental death benefit provisions of
Section 401(a)(9)(G) of the Code.  Further, such regulations shall
override any Plan provision that is inconsistent with Section 401(a)(9) of the
Code.

      
 

    

    
      
        
           

        

        
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    8.6           Direct
Rollover of Certain Distributions

    

    (a)           Notwithstanding
any provision of the Plan to the contrary that would otherwise limit a
distributee’s election under this Section 8, a distributee may elect, at the
time and in the manner prescribed by the Committee, to have any portion of an
eligible rollover distribution paid directly to an eligible retirement plan
specified by the distributee in a direct rollover.

    

    (b)           The
following definitions apply to the terms used in this Section:

    

    (i)           An
“eligible rollover distribution” is any distribution of all or any portion of
the balance to the credit of the distributee, except that an eligible rollover
distribution does not include:  any distribution that is one of a
series of substantially equal periodic payments (not less frequently than
annually) made for the life (or life expectancy) of the distributee or the joint
lives (or joint life expectancies) of the distributee and the distributee’s
designated beneficiary, or for a specified period of ten years or more; any
distribution to the extent such distribution is required under Section 401(a)(9)
of the Code; and the portion of any distribution that is not includible in gross
income.  Effective January 1, 2007, an eligible rollover distribution
does not include after-tax amounts unless such amount is rolled over or
transferred (i.e., directly rolled) to an individual retirement account
described in Section 408(a) of the Code or individual retirement annuity
described in Section 408(b) of the Code or, effective on or after January 1,
2008, a Roth individual retirement account described in Section 408A(b) of the
Code, or transferred (i.e., directly rolled over) to a qualified defined
contribution plan described in Section 401(a) of the Code; or, effective on and
after January 1, 2007, to any qualified plan described in Section 401(a) of the
Code or to an annuity plan described in Section 403(b) of the Code; provided any
such plan agrees to separately account for such after-tax amount and earnings
thereon.

     

    (ii)           An
“eligible retirement plan” is any of the following types of plans that accept
the distributee’s eligible rollover distribution: an individual retirement
account described in Section 408(a) of the Code; an individual retirement
annuity described in Section 408(b) of the Code; a Roth IRA described in Section
408A of the Code (for distributions made on or after January 1, 2008); an
annuity plan described in Section 403(a) of the Code; a qualified plan described
in Section 401(a) of the Code; an annuity contract described in Section 403(b)
of the Code; or an eligible plan under Section 457(b) of the Code which is
maintained by a state, political subdivision of a state, or any agency or
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.

    

    (iii)           A
“distributee” includes an Employee or former Employee and the Employee’s or
former Employee’s surviving Spouse, Spouse or former Spouse who is the alternate
payee under a qualified domestic relations order, as defined in Section 414(p)
of the Code.

    

    (iv)           A
“direct rollover” is a payment by the Plan to the eligible retirement plan
specified by the distributee.

    

    (c)           Notwithstanding
any provision of this Section to the contrary, effective as of January 1, 2010,
a non-Spouse Beneficiary of a deceased Participant may elect, at the time and in
the manner prescribed by the Committee, to directly roll over any portion of a
distribution that would constitute an eligible rollover distribution if it were
made to a Participant, surviving Spouse, or alternate payee, provided such
direct rollover is made to an individual retirement account described in Section
408(a) of the Code, an individual retirement annuity described in Section 408(b)
of the Code, or, effective for distributions made on or after January 1, 2008, a
Roth IRA described in Section 408A of the Code (collectively, “IRA”) that is
established on behalf of the non-Spouse Beneficiary and that will be treated as
an inherited IRA pursuant to the provisions of Sections 402(c)(11) and
408(d)(3)(C)(ii) of the Code.  Any distribution to a non-Spouse
Beneficiary pursuant to this subparagraph (d) shall be an “eligible rollover
distribution” (under subsection (b)(i) above).

    

    In the event that the provisions of
this Section 8.6 or any part thereof cease to be required by law as a result of
subsequent legislation or otherwise, this Section or any applicable part thereof
shall be ineffective without the necessity of further amendments to the
Plan.

    

    

    
      
        
           

        

        
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    SECTION
9.  ADMINISTRATION OF THE PLAN

    

    9.1           Plan
Administrator

    

    The Company shall be the Plan
Administrator except to the extent that:

    

    (a)           Authority
to administer the Plan is delegated to the Committee with respect to Sections
1.48 (Service), 3.5 (Reemployment of a Participant Currently in Receipt of a
Retirement Allowance), 4.9 (Non-duplication of Benefits), 6.1 (Prior to
Retirement), 6.3 (Designation of Beneficiary), 7.3 through 7.7 (Reemployment), 8
(Forms of Retirement Allowance), 10.4 (Disbursement of Funds), 10.5
(Contributor’s Additional Allowance Account), 12.2 (Discontinuance), 13
(Miscellaneous) and the remainder of this Section 9, and

    

    (b)           Authority
to hold the funds of the Plan has been delegated to the Trustee in accordance
with Section 10.2 (Trustee), and

    

    (c)           Authority
to direct the investment of the Plan’s funds has been delegated to the
Investment Manager in accordance with Section 10.3 (Investment Manager),
and

    

    (d)           Authority
to act for the Company has been reserved to the Board of Directors in accordance
with Section 9.2 (Board of Directors).

    

    9.2           Board
of Directors

    

    With respect to Sections 1.6
(Affiliate), 3.4 (Postponed Retirement Date), 9.3 (Appointment of the Benefit
Administration Committee), 10.2 (Trustee), 10.3 (Investment Manager), 11.1
(Amendment), 12.1 (Suspension of Contributions), 12.2 (Discontinuance), and 12.3
(Merger, Consolidation or Transfer), the Company shall act only by, or pursuant
to, a resolution of the Board of Directors.  With respect to any other
section of the Plan, the Company shall act through its appropriate officers or
delegate, provided, however, that with respect to Section 11.2, the Company
shall act through the Committee.

    

    9.3           Appointment
of the Benefit Administration Committee

    

    The Board of Directors shall appoint a
Benefit Administration Committee of not less than three members.  Any
member may resign, or be removed by the Board of Directors, at any
time.  Vacancies shall be filled by the Board of
Directors.

    

    9.4           Committee
Meetings, Procedures and Appointment of Agents

    

    Committee meetings may be called by the
chairman or secretary of the Committee on two days’ notice to each member and
shall be called on the written request of two members.  A majority
shall constitute a quorum.  All resolutions of or other actions taken
by the Committee shall be approved by majority vote of the members present at a
meeting or, if the Committee acts without a meeting, by the written consent of
all members.  The Committee shall choose from its members a chairman
and a secretary and shall have the authority to appoint such other officers (who
need not be members of the Committee) as it deems necessary and
desirable.

    

    The Company shall promptly notify the
Trustee of the name of any individual appointed to the Committee, of any officer
appointed by the Committee and of any vacancies or changes in such
offices.  The Committee may authorize one or more of its members or
officers to execute any document or documents on behalf of the Committee, in
which event the Committee shall notify the Trustee in writing of such action and
of the name(s) of its member(s) or officer(s) so designated.  The
Trustee thereafter shall accept and rely upon any document executed by such
member(s) or officer(s) as representing action by the Committee until the
Committee shall file with the Trustee a written revocation of such
designation.

    
       

      The Committee may adopt such by-laws
and regulations as it deems desirable for the conduct of its
affairs.  The Committee shall appoint the Actuary of the Plan and may
appoint such counsel, accountants, specialists and other persons as it deems
necessary or desirable in connection with its administration of the
Plan.  The Committee shall have the exclusive authority to interpret
the Plan provisions and to exercise discretion where necessary or appropriate in
the interpretation and administration of the Plan and to decide any and all
matters arising thereunder or in connection with the administration of the Plan,
and it shall endeavor to act, whether by general rules or by particular
decisions, so as not to discriminate in favor of any person or class of
persons.  Such decisions, actions and records of the Committee shall
be conclusive and binding upon the Company, Affiliates all persons having or
claiming to have any right or interest in or under the Plan.  The
Committee shall be entitled to rely conclusively upon, and shall be fully
protected in any action taken by it in good faith in reliance upon, any opinions
or reports which shall be furnished to it by the Actuary or any such counsel,
accountant or other specialist.  The Committee shall endeavor to act
by general rules so as not to discriminate in favor of any
person.  Its decisions and the records of the Committee shall be
conclusive and binding upon the Employers, Participants, and all other persons
having any interest under the Plan.

      

      Any member of the Committee who is a
Participant shall not vote on any question relating specifically to himself or
herself.

       

      
        9.5           Allocation
and Delegation of Responsibilities

        

        The Committee may (i) allocate certain
of its fiduciary responsibilities among the members of the Committee, and/or
(ii) designate persons to carry out certain of the Committee’s authority, duties
and responsibilities (including fiduciary responsibilities) under the
Plan.  In the event that any fiduciary duties and responsibilities are
delegated pursuant to clause (ii) of this Section, Participants shall be
notified of the identity of the persons to whom such duties and responsibilities
have been delegated and the Committee shall periodically review the performance
of such designees.  Any such delegation may be terminated at any time
by the Committee, in whole or in part.

        

        Any authority and responsibilities so
delegated shall be carried out within the framework of such rules, policies,
practices and procedures as may be promulgated from time to time by the
Committee.

        
 

      

    

    
      
        
           

        

        
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    9.6           Records
of Proceedings

    

    The Committee shall keep a record of
all its proceedings and acts and shall keep or cause to be kept all such books
of account, records or other data as may be necessary for proper administration
of the Plan.

    

    9.7           Compensation,
Expenses

    

    Unless otherwise determined by the
Board of Directors, no member of the Committee shall receive any compensation
for services rendered as a member of the Committee.  Expenses properly
and actually incurred by the Committee in the performance of its duties shall be
reimbursed by an Employer but to the extent not so reimbursed such expenses
shall be payable from the Retirement Allowance Fund.  Such expenses
shall include any costs or expenses incident to the functions of the Committee
and its administration of the Plan, including, without limitation, fees of
actuaries, counsel, accountants and other specialists.

    

    9.8           Information
Supplied by the Company

    

    To enable the Committee and its
designees to perform their functions, an Employer shall supply full and timely
information to the Committee and such designees relating to the compensation of
all Participants, their retirement, death or other cause for termination of
employment, and such other pertinent facts as the Committee and such designees
may require; and the Trustee shall be advised of such of the foregoing facts as
may be pertinent to it.

     

    9.9           Liability
and indemnification

    

    (a)           Neither
an Employer, any member of the Board of Directors or the Committee, nor their
respective designees who are employees of an Employer, shall be liable for any
loss, damage or depreciation that may arise out of or result from any act or
omission of such person hereunder, except when such loss, damage or depreciation
is due to such person’s gross negligence, willful misconduct or breach of
fiduciary duty.  The foregoing provision shall not relieve any person
from responsibility or liability for any responsibility, obligation or duty
imposed under Part 4 of Title I of the Act.

    

    (b)           In
accordance with and to the full extent permitted by applicable law, the Company
may indemnify and save harmless each member of the Board of Directors and of the
Committee, and their respective designees who are Employees of an Employer,
against all claims, losses, damages, liabilities and expenses (including without
limitation, judgments, fines, penalties, amounts paid in settlement and
attorneys’ fees) incurred by them and arising out of or resulting from any act
or omission hereunder or in connection herewith of such member of the Board of
Directors or Committee or their respective designees, except when the same is
determined to be due to such person’s gross negligence or willful
misconduct.

    

    9.10           Claims
for Benefits

    

    For purposes of the Plan, a claim for
benefit is a written application for benefits filed with the
Committee.  In the event that the Committee determines that such claim
should be denied in whole or in part, the Committee shall, in writing, notify
such claimant within 90 days (180 days under special circumstances) of receipt
of such claim that his or her claim has been denied, setting forth the specific
reasons for denial.  Such notification shall:

    

    (a)           be
written in a manner reasonably expected to be understood by such Participant or
other payee;

    

    (b)           set
forth the pertinent sections of the Plan on which the denial is
based;

    

    (c)           set
forth an explanation of how the claimant can obtain review of such denial and
what needs to be provided; and

    

    (d)           state
that the claimant has the right to bring a civil action under Section 502(a) of
ERISA.

    

    If a claim for benefits is denied, the
claimant may, within 60 days after delivery of such notice, appeal the denial by
submitting a written request that the Committee reconsider the decision denying
the claim.  If the claimant fails to request such a review within such
60 day period, it shall be conclusively determined for all purposes of this Plan
that the denial of such claim by the Committee is correct.

    

    The Committee shall consider the
information provided by the claimant, determine whether such denial of the claim
was correct and notify the claimant in writing of its determination, within 60
days (120 days under special circumstances) of receipt of the
appeal.  The Committee’s determination shall be binding and
conclusive.  If such determination is adverse to the claimant, the
decision will provide the reasons for the denial of the appeal and state that
the claimant has the right to bring a civil action under Section 502(a) of
ERISA.

    

    This claims procedure shall be
administered in accordance with the Committee’s rules as from time to time in
effect.

    

    
      
        
           

        

        
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    SECTION
10.  MANAGEMENT OF THE FUNDS

    

    10.1           Retirement
Allowance Fund

    

    All assets for providing the benefits
of the Plan shall be held as a trust fund for the exclusive benefit of
Participants, their Contingent Participants and Beneficiaries and other persons
entitled to benefits under the Plan and, prior to the satisfaction of all
liabilities with respect to them, no part of the corpus or income shall be used
for or diverted to any other purpose.  No person shall have any
interest in or right to any part of the trust fund, except to the extent
provided in the Plan.

    

    10.2           Trustee

    

    All contributions to the Plan shall be
paid over to a Trustee or Trustees (which may be a corporate trustee or an
insurance company or both) which shall be appointed from time to time by the
Board of Directors by appropriate instrument with such powers in the Trustee as
to the control and disbursement of the funds as the Board of Directors shall
approve and as shall be in accordance with the Plan.  The Board of
Directors may remove any Trustee at any time, upon reasonable notice, and upon
such removal or upon the resignation of any Trustee the Board of Directors shall
designate a successor Trustee.

    

    10.3           Investment
Manager

    

    Pursuant to the terms of the trust
instrument, the Board of Directors may appoint one or more Investment Managers
(individuals and/or other entities), who may include the Trustee and who are
collectively referred to herein as the Investment Manager, to direct the
investment and reinvestment of part or all of the Plan’s funds, and the Board of
Directors may change the appointment of the Investment Manager from time to
time.

    

    10.4           Disbursement
of Funds

    

    The funds held by the Trustee shall be
applied, in the manner determined by the Committee, to the payment of benefits
to such persons as are entitled thereto in accordance with the
Plan.

    

    The Committee shall determine the
manner in which the funds of the Plan shall be disbursed in accordance with the
Plan, including the form of voucher or warrant to be used in authorizing
disbursements and the qualification of persons authorized to approve and sign
the same and any other matters incident to the disbursement of such
funds.  Also, the Committee shall from time to time advise the Trustee
and the Investment Manager of the Plan’s needs for liquidity with respect to
benefit payments and disbursements.

    

    All disbursements by the Trustee,
except for the ordinary expenses of the administration of the Trust Fund,
including settlement of duly authorized investment transactions for the account
of the Trust Fund, shall be made upon the written instructions of the
Committee.

    

    10.5           Contributor’s
Additional Allowance Account

    

    Employee contributions shall be
accounted for by the Committee under a Contributor’s Additional Allowance
Account.  In this account shall be recorded all contributions (wage or
salary deductions) made by a Contributor for Additional
Allowances.  This account shall be credited annually with Interest, on
the accumulated balances.  All refunds of a Contributor’s Additional
Allowance Account which may be made prior to retirement shall be charged to this
account as will any Additional Allowance payments made to or on behalf of the
Contributor.

    

    
      
        
           

        

        
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    SECTION
11.  AMENDMENT

    

    11.1           Right
to Amend

    

    The Company, by action of the Board of
Directors, shall have the right at any time, and from time to time, to amend in
whole or in part, any or all of the provisions of this Plan.  However,
no such amendment shall reduce any benefit theretofore accrued for service prior
to the date of such amendment nor authorize or permit any part of the Retirement
Allowance Fund to be used for or diverted to purposes other than the exclusive
benefit of the Participants or their Contingent Participants and Beneficiaries
and other persons entitled to benefits under the Plan, and no such amendment
which affects the rights, duties or responsibilities of the Trustee may be made
without the Trustee’s prior written consent.  Any such amendment shall
become effective upon delivery of a written instrument, incorporating the terms
of such amendment, executed on behalf of the Company by its proper officers duly
authorized, to the Committee and the Trustee and the endorsement of the Trustee
of its written consent thereto if such consent is required.

    

    The Benefits Administration Committee
shall also have the right to amend in whole or part any or all of the provisions
of the Plan, provided such amendment does not violate the preceding provisions
of this Section 11.1 and does not significantly increase the cost to the Company
or materially impact Participants.  Such action shall be evidenced by
written resolution certified in writing by the Benefits Administration
Committee.

    

    For purposes of this Section, a Plan
amendment that has the effect of (a) eliminating or reducing an early retirement
benefit or retirement-type subsidy, or (b) eliminating an optional form, with
respect to benefits attributable to service before the amendment shall be
treated as reducing a Participant’s Accrued Benefit.  In the case of a
retirement-type subsidy, the preceding sentence shall apply only with respect to
a Participant who satisfies (either before or after the amendment) the
pre-amendment conditions for the subsidy.  Notwithstanding the
preceding, the Accrued Benefit of a Participant, early retirement benefit,
retirement-type subsidy, or optional form of benefit may be reduced to the
extent permitted under Section 412(c)(8) of the Code (as it read before October
1, 2008) or Section 412(d)(2) of the Code (as it reads for Plan Years beginning
on and after October 1, 2008), or to the extent permitted under Sections
1.411(d)-3 and 1.411(d)-4 of the Treasury Department regulations.

    

    11.2           Special
Provision for Amendment of Section 16.3(a)

    

    Notwithstanding the provisions of
Section 11.1, the Committee shall have the authority, at any time and from time
to time, to modify by resolution the dollar limit specified in Section 16.3(a),
with respect to Plan Years commencing on or after October 1,
2005.  Any resolution adopted by the Committee in accordance with this
Section shall have the force and effect of an amendment to the
Plan.

    

    

    
      
        
           

        

        
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    SECTION
12.  SUSPENSION AND DISCONTINUANCE

    

    12.1           Suspension
of Contributions

    

    The Board of Directors may suspend
contributions in whole or in part.  The suspension of the Company’s
contributions shall not in itself constitute a discontinuance of the
Plan.

    

    12.2           Discontinuance

    

    The Board of Directors shall have the
right at any time to terminate this Plan in whole or in part, by delivering to
the Trustee its duly authorized instrument of termination.

    

    Upon termination or partial termination
of the Plan, the Trustee shall allocate the assets of the Retirement Allowance
Fund for the benefit of each Participant, Contingent Participant and other
person entitled to benefits under the Plan in the terminated group so as to
provide nonforfeitable benefits to each such Participant, Contingent Participant
and other person entitled to benefits under the Plan, based on their right to
benefits accrued to the Plan termination date, to the extent that such accrued
benefits have been funded.  The allocation shall be made in a manner
approved by the Internal Revenue Service in accordance with the provisions of,
and regulations issued pursuant to, Section 4044 of the Employee Retirement
Income Security Act of 1974.

    

    The amounts so allocated in accordance
with the above shall be applied for the benefit of each such person either by a
cash payment or by the purchase of an insurance company annuity
contract.  However, in the event that the assets available for
allocation are less than the value of insured vested benefits, the Pension
Benefit Guaranty Corporation may direct how the allocated amounts are to be
applied.

    

    If any of the assets of the Retirement
Allowance Fund remain after the satisfaction of all liabilities of the Plan the
remaining funds shall be paid by the Trustee to the Employer.

    

    12.3           Merger,
Consolidation or Transfer

    

    No merger or consolidation of this Plan
with, or transfer of assets or liabilities to, any other plan will become
effective until at least 30 days after the Company has filed with the Secretary
of the Treasury such statement as shall be required by law.  In the
event of any merger or consolidation with, or transfer of assets or liabilities
to, any other plan, each Participant shall be entitled to a benefit under the
resulting plan, immediately after the merger, consolidation or transfer which
would be (if the plan then terminated) equal to or greater than the benefit he
or she would have been entitled to receive under this Plan, immediately before
the merger, consolidation or transfer (if this Plan had then been
terminated).

    

    
      
        
           

        

        
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    SECTION
13.  MISCELLANEOUS

    

    13.1           Uniform
Administration

    

    Whenever, in the administration of the
Plan, any action is required by the Company or the Committee, including, but not
by way of limitation, action with respect to eligibility or classification of
Employees, contributions or benefits, such action shall be uniform in nature as
applied to all persons similarly situated and no such action shall be taken
which will discriminate in favor of Participants who are Highly Compensated
Employees.

    

    13.2           Payment
Due an Incompetent

    

    In the event that the Committee shall
determine that any person entitled to benefit payments under this Plan is, for
reasons of health, incompetency or otherwise, partially or wholly disabled from
receiving and applying such benefit payments to his or her own use, endorsing
checks, or executing any other appropriate document, and no guardian or
committee incompetently shall have been appointed for; or in respect of, said
person, then the Committee may, at its sole discretion and upon receipt of such
evidence as shall be satisfactory to it that payments will be applied for the
purposes intended, direct that any benefit under this Plan payable to such
person shall be paid to such person or persons as the Committee shall
determine.  Payments made pursuant to such power shall operate as a
complete discharge of the Committee, the Trustee and the Retirement Allowance
Fund.

    

    13.3           Identity
of Payee

    

    The determination of the Committee as
to the identity of the proper payee of any benefit under the Plan and the amount
of such benefit properly payable shall be conclusive, and payment in accordance
with such determination shall constitute a complete discharge of all obligations
on account of such benefit.

    

    13.4           Non-alienation
of Benefits

    

    Except as otherwise provided by law, no
benefit, interest or payment under the Plan shall be subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or
charge, whether voluntary or involuntary, and no attempt to so anticipate,
alienate, sell, transfer, assign, pledge, encumber or charge the same shall be
valid nor shall any such benefit, interest or payment be in any way liable for
or subject to the debts, contracts, liabilities, engagements or torts of the
person entitled to such benefit, interest, or payment or subject to attachment,
garnishment, levy execution or other legal or equitable process.

    

    Notwithstanding the foregoing, the
creation, assignment, or recognition of a right to any benefit payable with
respect to a Participant pursuant to a “qualified domestic relations order” (as
defined in Section 414(p) of the Code shall not be treated as an assignment or
alienation prohibited by this Section 13.4.  A domestic relations
order will not be considered as a “qualified domestic relations order” if it:
(i) requires the Plan to provide a type or form of benefit not otherwise
provided under the Plan, or (ii) requires the Plan to provide increased benefits
(determined on the basis of actuarial value), or (iii) requires the payment of
benefits to an alternate payee under another order previously determined to be a
“qualified domestic relations order.”  A domestic relations order
shall not be treated as failing to meet the requirements of subpart (i) of the
preceding sentence solely because it requires payment of benefits on or after
the date on which the Participant attains earliest retirement age (as defined in
Section 414(p)(4)(B) of the Code) under the Plan whether or not the Participant
actually retires on that date.  During any period in which the
Committee is determining whether an order is a “qualified domestic relations
order,” no benefits which are in dispute shall be paid hereunder, except as may
be required by the Code.

    

    Notwithstanding the foregoing, a
Participant’s benefit under the Plan shall be offset or reduced by the amount
the Participant is required to pay to the Plan under the circumstances set forth
in Section 401(a)(13) of the Code.  A Participant’s benefit under the
Plan shall also be distributed as required because of the enforcement of a
federal tax levy made pursuant to Section 6331 of the Code or the collection by
the United States on a judgment resulting from an unpaid tax
assessment.

     

    
      13.5           Source
of Payments

      

      Retirement Allowances and all other
benefits shall be paid or provided solely from the Retirement Allowance Fund and
the Employer assumes no liability or responsibility therefor.

      

      13.6           Plan
Not a Contract of Employment

      

      The adoption and maintenance of the
Plan shall not be deemed to constitute a contract between an Employer and any
Employee or Participant, or to be consideration for, or an inducement or
condition of, the employment of any person.  Nothing herein contained
shall be deemed to give any Employee or Participant the right to be retained in
the employ of an Employer or to interfere with the right of an Employer to
discharge any Employee or Participant at any time.

       

      
        13.7           Payment
of Retirement Allowance:

        

        Retirement Allowance payments shall
commence not later than the 60th day after the close of the Plan Year in which
the latest of the following events occurs:

        

        (a)           the
attainment by the Participant of age 65, or

        

        (b)           the
5th anniversary of the year in which the Participant commenced participation in
the Plan, or

        

        (c)           the
termination of the Participant’s employment with an Employer and all Affiliates,
except that if the amount of the payment required to commence on the date
determined under this Section 13.7 cannot be ascertained by such date, a payment
retroactive to such date may be made no later than 60 days after the earliest
date on which the amount of such payment can be determined under the
Plan.

         

      

    

    
      
        
           

        

        
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    13.8           Adoption
of Plan by Affiliate

    

    (a)           If
any company is now or becomes an Affiliate, the Board of Directors may include
the employees of that company in the participation of the Plan upon appropriate
action by that company necessary to adopt the Plan.  In that event or
if any persons become Employees of an Employer as the result of merger or
consolidation or as the result of acquisition of all or part of the assets or
business of another company, the Board of Directors shall determine to what
extent, if any, credit and benefits shall be granted for previous service with
the Affiliate or other company, but subject to the continued qualification of
the trust for the Plan as tax-exempt under the Code.

    

    (b)           If
a company participating in the Plan pursuant to the provisions of Section
13.8(a) ceases to be an Affiliate, its participation in the Plan shall cease as
of the date and its employees shall cease to be eligible Employees as defined in
Section 1.24.  Upon approval of the Board of Directors, an Employer
participating in the Plan pursuant to the provisions of Section 13.8(a) may
voluntarily cease its participation in the Plan upon appropriate action by it,
and upon such action, its employees shall cease to be eligible Employees as
defined in Section 1.34.  In either event, the funds of the Plan held
on account of Participants in the employ of that company shall continue to be
held as part of the Plan, unless the Board of Directors directs the Trustee to
segregate the funds held on account of the Participants in the employ of that
company as a separate trust, pursuant to certification to the Trustee by the
Committee (determined as if the Plan had then terminated), and continue the Plan
as a separate plan for the employees of that company under which the board of
directors of that company shall succeed to all the powers and duties of the
Board of Directors, including the appointment of the members of the
Committee.

     

    13.9           Limitations
Based on the Funded Status of the Plan

    

    Notwithstanding any provision of the
Plan to the contrary, the following provisions shall apply as required by
Section 436 of the Code effective for Plan Years beginning on or after October
1, 2008, except to the extent the exception under Section 436(d)(4) of the Code
applies:

    

    (a)           In
the event the Plan’s adjusted funding target attainment percentage for a Plan
Year is less than 60 percent, benefit accruals shall cease during the period
benefit accruals are restricted under the provisions of Section 436(e) of the
Code.

    

    (b)           In
the event the Plan’s adjusted funding target attainment percentage for a Plan
Year falls below the threshold defined under Section 436(d)(1) and/or (3) of the
Code, the Trustee shall, as directed by the Committee, cease payment of any
prohibited payment during the period specified in, and to the extent necessary
to comply with the provisions of Section 436(d) of the Code.

    

    (c)           In
no event shall a prohibited payment be paid during any period the Employer is a
debtor in a case under Title 11, United States Code, or similar federal or state
law, to the extent necessary to comply with the provisions of Section 436(d)(2)
of the Code.

    

    (d)           In
no event shall an amendment that has the effect of increasing liabilities of the
Plan by reason of increases in benefits, establishment of new benefits, changing
the rate of benefit accrual, or changing the rate at which benefits become
nonforfeitable become effective during the period such amendment would violate
the provisions of Section 436(c) of the Code.

    

    (e)           If
an optional form of benefit that is otherwise available under the terms of the
Plan is not available because of the application of Section 436(d)(1) or (2) of
the Code, the Participant or Beneficiary, as applicable, shall be eligible to
elect another form of benefit available under the Plan or to defer payment to a
later date (to the extent permitted under applicable qualification
requirements).

    

    (f)           If
an optional form of benefit that is otherwise available under the terms of the
Plan is not available because of the application of Section 436(d)(3) of the
Code, a Participant or Beneficiary, as applicable, shall be eligible to defer
his entire payment to a later date (to the extent permitted under applicable
qualification requirements) or to bifurcate the benefit into unrestricted and
restricted portions.  If  such a Participant or Beneficiary
elects to bifurcate the benefit, the Participant or Beneficiary shall be
eligible to elect, with respect to the unrestricted portion of the benefit, any
optional form otherwise available under the Plan with respect to the
Participant’s or Beneficiary’s entire benefit and in such a case, if the
Participant or Beneficiary elects payment of the unrestricted portion of the
benefit in the form of a prohibited payment, the Participant or Beneficiary
shall be eligible to elect to receive payment of the restricted portion of the
benefit in any optional form of benefit under the Plan that is not a prohibited
payment and that would have been permitted with respect to the Participant’s or
Beneficiary’s entire benefit.

    

    For purposes of this Section, the terms
“adjusted funding target attainment percentage,” “prohibited payment,”
“unrestricted portion of the benefit,” and “restricted portion of the benefit”
shall have the meanings given under Section 436 of the Code, the regulations
thereunder, and any applicable Internal Revenue Service guidance.

    

    In the event that the provisions of
this Section 13.9 or any part thereof cease to be required by law as a result of
subsequent legislation or otherwise, this Section or any applicable part thereof
shall be ineffective without the necessity of further amendments to the
Plan.

     

    13.10           Limitations
on Unpredictable Contingent Event Benefits.

    

    Notwithstanding any provision of the
Plan to the contrary, with respect to Plan Years beginning on or after October
1, 2008, if a Participant or Beneficiary is entitled to an “unpredictable
contingent event benefit” (as defined under Section 436(b) of the Code) with
respect to any event occurring during any Plan Year, such unpredictable
contingent event benefit shall not be provided to such Participant or
Beneficiary if the Plan’s adjusted funding target attainment percentage (as
defined in Section 13.9) for such Plan Year is less than 60 percent or would be
less than 60 percent taking into account such occurrence; provided, however,
that such unpredictable contingent event benefit shall become payable if and
when the Plan meets the exemption under Section 436(b)(2) of the
Code.

    

    In the event that the provisions of
this Section 13.10 or any part thereof cease to be required by law as a result
of subsequent legislation or otherwise, this Section or any applicable part
thereof shall be ineffective without the necessity of further amendments to the
Plan.

    

    
      
        
           

        

        
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    SECTION
14.  PRE-TERMINATION RESTRICTIONS

    

    14.1           Restriction
on Benefits

    

    (a)           In
the event of the termination of the Plan or other event specified in Treasury
Regulation Section 1.401(a)(4)-5(b), the benefit of any Highly Compensated
Employee, including any former Employee who was a highly compensated Employee
when such Employee separated from service or any Employee who was a Highly
Compensated Employee at any time after attaining age 55, shall in no event
exceed an amount that is nondiscriminatory under Section 401(a)(4) of the
Internal Revenue Code.

    

    (b)           The
annual payments to an Employee described in paragraph (c) below may not exceed
an amount equal to the payments that would be made on behalf of the Employee
under a single life annuity that is the Actuarial Equivalent value of the sum of
the Employee's Accrued Retirement Allowance and the Employee's other benefits
under the Plan.  Notwithstanding the foregoing the restrictions of
this paragraph (b) do not apply, however, if:

    

    (i)           after
payment to an Employee described in paragraph (c) below of all “benefits”
described in paragraph (d) below, the value of Plan assets equals or exceeds 110
percent of the value of current liabilities, as defined in Section 412(1)(7) of
the Internal Revenue Code,

    

    (ii)           the
value of the benefits described in paragraph (d) below for an Employee described
in paragraph (c) below is less than 1 percent of the value of current
liabilities of the Plan, or

    

    (iii)           the
value of the benefits described in paragraph (d) below for an Employee described
in paragraph (c) below does not exceed the amount described in Section
411(a)(11)(A) of the Code.

    

    (c)           The
Employees whose benefits are restricted on distribution consist of the 25 Highly
Compensated Employees (including former Employees who were Highly Compensated
Employees when they separated from service and Employees who were Highly
Compensated Employees at any time after attaining age 55) whose compensation
(under Section 414(q) of the Internal Revenue Code) was the highest in the
current or any prior Plan Year.

    

    (d)           For
purposes of subparagraph (b)(i) the term “benefits” includes, in addition to
other benefits payable under the Plan, loans in excess of the amounts set forth
in Section 72(p)(2)(A) of the Internal Revenue Code, any periodic income, any
withdrawal values payable to a living Employee, and any death benefits not
provided for by insurance on the Employee's life.

    

    (e)           Furthermore,
this Section 14 and Treasury Regulation Section 1.401(a)(4)-5(b)(3) shall not
restrict any distribution to a Participant who agrees, by an adequately secured
written agreement with the Committee, to repay to the Plan and Trust any amount
necessary for the distribution of assets upon Plan termination or other event to
satisfy Section 401(a)(4) of the Internal Revenue Code.

    (f)           Notwithstanding
paragraph (a) above, in the event the Plan is terminated, the restriction of
this Section shall not be applicable if the benefit payable to any Employee
otherwise affected by this Section 14 is limited to a benefit that is
nondiscriminatory under Section 401(a)(4) of the Code.

    (g)           If
it should subsequently be determined by statute, court decision acquiesced in by
the Commissioner of Internal Revenue, or ruling by the Commissioner of Internal
Revenue that the provisions of this Section 14 are no longer necessary to
qualify the Plan under the Code, this Section shall be ineffective without the
necessity of further amendment to the Plan.

    

    
      
        
           

        

        
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    SECTION
15.  TOP-HEAVY PROVISIONS

    

    (a)           The
following definitions apply to the terms used in this Section:

    

    (i)           “applicable
determination date” means the last day of the preceding Plan Year;

    

    (ii)           “top-heavy
ratio” means the ratio of (A) the present value of the cumulative Accrued
Retirement Allowances under the Plan for key employees to (B) the present value
of the cumulative Accrued Retirement Allowances under the Plan for all key
employees and non-key employees; provided, however, that if an individual has
not performed services for an Employer at any time during the five-year period
(one-year period effective January 1, 2002) ending on the applicable
determination date, any accrued benefit for such individual (and the account of
such individual) shall not be taken into account; and provided further that,
effective January 1, 2002, the present values of Accrued Retirement Allowances
under the Plan for an employee as of the applicable determination date shall be
increased by the distributions made with respect to the employee under the Plan
and in a plan in the permissive aggregation group during the one-year period
(five-year period in the case of a distribution made for a reason other than
separation from service, death, or disability) ending on the applicable
determination date and any distributions made with respect to the employee under
a terminated plan which, had it not been terminated, would have been in the
required aggregation group;

    

    (iii)           “applicable
valuation date” means the date within the preceding Plan Year as of which annual
Plan costs are or would be computed for minimum funding purposes;

    

    (iv)           “key
employee” means :

    

    (A)           prior
to January 1, 2002, an employee who is in a category of employees determined in
accordance with the provisions of Section 416(i)(1) and (5) of the Code and any
regulations thereunder, and, where applicable, on the basis of the Employee’s
remuneration (defined as set forth in Section 4.4(a)) from an Employer;
and

    

    (B)           on
and after January 1, 2002, any employee or former employee (including any
deceased employee) who at any time during the Plan Year that includes the
applicable determination date was an officer of the Employer having remuneration
greater than $130,000 (as adjusted under Section 416(i)(1) of the Code for Plan
Years beginning after December 31, 2002), a 5 percent owner (as defined in
Section 416(i)(1)(B)(i) of the Code) of the Employer, or a 1 percent owner (as
defined in Section 416(i)(1)(B)(ii) of the Code) of the Employer having
remuneration greater than $150,000.  The determination of who is a key
employee shall be made in accordance with Section 416(i) of the Code and the
applicable regulations and other guidance of general applicability issued
thereunder.

    

    (v)           “non-key
employee” means any employee who is not a key employee;

    

    (vi)           “average
remuneration” means the average annual remuneration (as defined in Section
4.4(d)) of a Member for the five consecutive years of his or her Continuous
Service after December 31, 1983 during which he or she received the greatest
aggregate remuneration from the Employer, excluding any remuneration for service
after the last Plan Year with respect to which the Plan is
top-heavy;

    

    (vii)           “required
aggregation group” means each other qualified plan of the Employer (including
plans that terminated within the five-year period ending on the determination
date) in which there are members who are key employees or which enables the Plan
to meet the requirements of Section 401(a)(4) or 410 of the Code;
and

    

    (viii)           “permissive
aggregation group” means each plan in the required aggregation group and any
other qualified plan(s) of the Employer in which all members are non-key
employees, if the resulting aggregation group continues to meet the requirements
of Sections 401(a)(4) and 410 of the Code.

     

    
      (b)           For
purposes of this Section, the Plan shall be “top-heavy” with respect to any Plan
Year beginning on or after January 1, 1984, if as of the applicable
determination date the top-heavy ratio exceeds 60%.  The top-heavy
ratio shall be determined as of the applicable valuation date in accordance with
Section 416(g)(3) and (4)(B) of the Code on the basis of the actuarial
assumptions (other than with respect to future withdrawals and future salary
increases) used by the Plan’s Actuary in the actuarial valuation performed for
Code Section 412 minimum funding purposes as of such valuation
date.  For purposes of determin­ing whether the Plan is top-heavy,
the present value of Accrued Benefits under the Plan will be combined with the
present value of account balances under the Savings Plan.  The accrued
benefit of a non-key employee under the Plan shall be (i) determined under the
method, if any, that uniformly applies for accrual purposes under all plans
maintained by the Employer, or (ii) if there is no such method, as if such
benefit accrued not more rapidly than the slowest accrual rate permitted under
the fractional rule described in Section 411(b)(1)(C) of the Code.

      

      (c)           The
following provisions shall be applicable to Members for any Plan Year with
respect to which the Plan is top-heavy:

      

      (i)           In
lieu of the vesting requirements specified in Section 7.2, any Participant who
has completed three years of Service shall be fully vested in, and have a
nonforfeitable right to, his or her Accrued Retirement Allowance determined in
accordance with the provisions of Section 1.1 and subparagraph (ii)
below.

      

      (ii)           The
Accrued Benefit of a Participant who is a non-key employee shall not be less
than two percent of his or her average remuneration multi­plied by the
number of years of his or her Service, not in excess of 10, during the Plan
Years for which the Plan is top-heavy.  That minimum benefit shall be
payable at a Participant’s Normal Retirement Date.  If payments
commence at a time other than the Participant’s Normal Retirement Date, the
minimum Accrued Retirement Allowance shall be of Actuarial Equivalent value to
that minimum benefit.  For purposes of the preceding sentence,
effective January 1, 2002, Service shall be disregarded to the extent that such
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.

    

    

    (d)           If
the Plan is top-heavy with respect to a Plan Year and ceases to be top-heavy for
a subsequent Plan Year, the following provisions shall be
applicable:

    

    (i)           The
Accrued Retirement Allowance in any such subsequent Plan Year shall not be less
than the minimum Accrued Retirement Allowance provided in paragraph (c)(ii)
above, computed as of the end of the most recent Plan Year for which the Plan
was top-heavy.

    

    (ii)           If
a Participant has completed three years of Continuous Service on or before the
last day of the most recent Plan Year for which the Plan was top-heavy, the
vesting provision set forth in paragraph (c)(i) above shall continue to be
applicable.

    

    

    
      
        
           

        

        
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    SECTION
16.  RETIREE MEDICAL ACCOUNT

    

    16.1           Construction

    

    The provisions of this Section 16 are
intended to meet the requirements of Section 401(h) of the Internal Revenue Code
and the regulations thereunder.

    

    16.2           Establishment
of Account:

    

    The Company shall establish a
recordkeeping account (the “Retiree Medical
Account”) within the trust fund maintained under Section 10 of the Plan,
effective October 1, 1992, to provide for the payment of Medical Benefits of
Eligible Retirees and their Dependents and to hold contributions made under this
Section 16.  The establishment of the Retiree Medical Account in no
way affects the Company's right to amend, suspend or terminate any other
employee benefit plan offered by the Company.  The Medical Benefits
supplied through the Retiree Medical Account are subordinate to the retirement
benefits offered by the Plan.

    

    16.3           Definitions

    

    For purposes of this Section
16:

    

    (a)           “Medical Benefits”
means, for any Plan Year commencing on or after October 1, 1992, the same
medical benefits as the medical or other benefits provided to such Eligible
Retirees and their Dependents under the Company's program for providing health
care benefits (the “Program”) as in
effect during such Plan Year; provided, however, that (i) for Plan Years
commencing on or after October 1, 1992 and prior to October 1, 2004, “Medical
Benefits” shall be provided only to the extent the per capita cost of the
Program exceeds 150 percent of the per capita cost of the Program during the
Plan Year ending on September 30, 1993, and (ii) for Plan Years commencing on or
after October 1, 2004, “Medical Benefits” shall be provided only to the extent
that the per capita cost of the Program exceeds $8,000, each as determined in
accordance with reasonable actuarial methods and assumptions.  Unless
the context clearly requires otherwise, all of the terms and conditions of the
Program, as in effect from time to time, are hereby incorporated herein by
reference, including, without limitation of the foregoing, all the terms and
conditions describing the specific hospital, surgical and medical expenses
covered, the amounts payable with respect to covered expenses, the exclusions,
conditions and limitations pertaining to the payment of covered benefits, the
termination of coverage and the procedures for claiming
benefits.  Medical Benefits shall be paid under this Section only to
the extent there are sufficient funds to provide such benefits available in the
Retiree Medical Account described in Section 16.2.  In no event shall
any benefits be paid under this Section to the extent the same benefits are paid
by or are payable under any other plan, program, or arrangement sponsored by the
Company or its Affiliates.

    

    (b)           “Eligible
Retiree” means a Participant who (i) has terminated employment with the Company
and its Affiliates, (ii) is eligible for (or who has received) a benefit under
Section 4 of the Plan, (iii) is eligible for Medical Benefits, and (iv)
effective on and after October 1, 2004, has at no time been a “key employee,”
within the meaning of Section 416(i) of the Internal Revenue
Code.  Notwithstanding the foregoing, “Eligible Retiree” shall not
include a Participant who is not making any contributions that may be required
to obtain Medical Benefits under the Program; and

    

    (c)           “Dependent” means the
lawful Spouse of an Eligible Retiree and any other individual who is a
“dependent” of an Eligible Retiree (i) within the meaning of Section 152 of the
Internal Revenue Code and (ii) under the terms of the
Program.  Notwithstanding the foregoing, “Dependent” shall not include
an individual for whom contributions are required to be made to obtain Medical
Benefits under the Program and such contributions are not being
made.

    
       

      16.4           Company
Contribution

      

      For each Plan Year beginning on or
after October 1, 1992, the Company on behalf of the Employers may contribute to
the Plan's trust fund such amounts as may be necessary to meet all or a portion
of the total cost of the Medical Benefits provided under Section 16.2, as
determined under any generally accepted actuarial method that is reasonable (in
view of the provisions and coverage of this Section 16), less any portion of the
cost to be met by any contributions by Eligible Retirees or Dependents under the
Program.  Any contributions so made by the Company shall be
accompanied by a written statement specifically designating such contribution as
a contribution to fund the Medical Benefits provided under this Section
16.  All Company contributions must be reasonable and
ascertainable.

      

      Notwithstanding the foregoing, Company
contributions shall be subject to the following limitations:

      

      (a)           No
amount shall be contributed if the contribution of such amount would cause the
sum of (i) the aggregate amount of contributions made under this Section 16.4
after October 1, 1992, and (ii) the contributions, if any, made after
that date under the Plan to provide life insurance protection as defined in
Treasury Regulation Section 1.401-14(c)(1)(i), to exceed 25 percent of the total
contributions actually made to the Plan, other than contributions made to fund
past service credits, after the date on which the Retiree Medical Account is
established.

      

      (b)           Each
contribution made by the Company hereby is conditioned upon its deductibility
under Section 404(a)(1) of the Internal Revenue Code, and no contribution shall
be made by the Company hereunder for any Plan Year in excess of the amount for
which a deduction is allowable for such Year under Section 404 of the Internal
Revenue Code and the regulations thereunder.

      

      (c)           The
Company shall not be required to make any contribution under this Section 16
after the date as of which the provisions of this Section 16 are terminated
pursuant to Section 16.10, except to fund Medical Benefits payable hereunder
with respect to expenses incurred by Eligible Retirees and their Dependents
prior to the date of such termination.

      

      The Company's contribution may be in
the form of a “qualified transfer,” within the meaning of Section 420 of the
Internal Revenue Code, in which case, to the extent the requirements of Section
420 of the Internal Revenue Code contradict the provisions of this Section 16 or
impose additional rules on the Plan, the provisions of the Code Section shall
govern.

    

    

    
      
        
           

        

        
          33

          
            

          

        

        
           

        

      

    

    

    16.5           Investment
of Contributions

    

    All contributions under this Section 16
shall be made in the form of payments to the Trustee.  Any
contributions so made by the Company shall be accompanied by a written statement
specifically designating such contribution as a contribution to fund the Medical
Benefits provided under this Section 16.

    

    Amounts in the Retiree Medical Account
need not be invested separately from other Plan assets.  However, if
amounts in the Retiree Medical Account are invested, on a commingled basis, with
other Plan assets, there shall be allocated to the Retiree Medical Account that
portion of the total income or loss attributable to the investment of all Plan
assets which the total amount in the Retiree Medical Account bears to the total
value of all Plan assets.

     

    16.6           Key
Employees

    

    For Plan Years beginning prior to
October 1, 2004, a separate account within the Retiree Medical Account shall be
maintained for the Medical Benefits of each Eligible Retiree or Dependent who is
a “key employee,” within the meaning of Section 416(i) of the Internal Revenue
Code, and their Dependents.  Payment of such key employee’s Medical
Benefits (including those of his or her Dependents) attributable to Plan Years
commencing prior to October 1, 2004 when such individual was a key employee
shall be made solely from his or her separate account.  In accordance
with the provisions of Section 16.3(b), no payment shall be made for Medical
Benefits of any key employee or Dependent of a key employee.

    

    16.7           Forfeitures

    

    No eligible Employee shall have, as of
any date, whether before or after he or she becomes an Eligible Retiree, any
vested interest in any Medical Benefits provided for hereunder, or in any amount
in the Retiree Medical Account, except for Medical Benefits payable with respect
to any medical expense covered hereunder that was actually paid or incurred by
an Eligible Retiree or a Dependent prior to such date.  In particular,
retirement or the fulfillment of the conditions for a pension benefit pursuant
to the terms of this Plan or under the terms of any other employee benefit plan
maintained by the Company shall not confer upon any eligible Employee, Eligible
Retiree, or Dependent any right to continued benefits under this
Section 16.

    

    In the event that the interest of any
eligible Employee, Eligible Retiree, or Dependent in the Retiree Medical Account
is forfeited prior to termination of this Section 16, an amount equal to the
amount of the forfeiture shall be applied as soon as possible to reduce Company
contributions to fund the Medical Benefits provided under this Section
16.

    

    16.8           Impossibility
of Diversion

    

    It shall be impossible, at any time
prior to the satisfaction of all liabilities under the Plan to provide for the
payment of Medical Benefits under this Section 16, for any amount in the Retiree
Medical Account to be used for, or diverted to, any purposes other than the
providing of such Medical Benefits.  However, the payment of any
necessary or appropriate expenses attributable to the administration of the
Retiree Medical Account shall not be deemed a violation of the foregoing
requirement.

    

    16.9           Amendment

    

    The Company may amend this Section 16
at any time, and from time to time, and may take such action retroactively if
deemed advisable in order to meet the requirements of the Internal Revenue
Code.  However, no such amendment shall reduce or eliminate Medical
Benefits otherwise payable hereunder with respect to any medical expense that
was actually paid or incurred by an Eligible Retiree or Dependent prior to the
date of such amendment.

    

    16.10           Termination

    

    The Company may terminate the
provisions of this Section 16 at any time.  No benefit shall be paid
under this Section 16 after the effective date of such termination, except for
any Medical Benefits otherwise payable hereunder with respect to any medical
expense that was actually paid or incurred by an Eligible Retiree or Dependent
prior to the date of such termination.  A termination of the
provisions of this Section 16 shall not constitute a termination or partial
termination of the Plan.

    

    16.11           Reversion
of Assets Upon Termination

    

    Upon the termination of this Section
16, any balance remaining in the Retiree Medical Account after all liabilities
under this Section 16 have been satisfied shall be paid over to the
Company.

    

    
      
        
           

        

        
          34

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