Document:

Exhibit

EXHIBIT 10.2

RETIREMENT INCOME REINSTATEMENT PLAN

FOR NON‐REPRESENTED EMPLOYEES OF

PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

AND ITS AFFILIATES

Amended September 23, 2019 and effective July 1, 2019

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RETIREMENT INCOME REINSTATEMENT PLAN
FOR NON‐REPRESENTED EMPLOYEES OF
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED
AND ITS AFFILIATES

Public Service Electric and Gas Company (“PSE&G”) had established, effective January 1, 1995, the Retirement Income Reinstatement Plan for Non‐Represented Employees of Public Service Electric and Gas Company and its Affiliates. Effective December 13, 1999, PSE&G transferred sponsorship of the plan to Public Service Enterprise Group Incorporated (“PSEG”) and renamed the plan the Retirement Income Reinstatement Plan for Non‐Represented Employees of Public Service Enterprise Group Incorporated and its Affiliates (“Reinstatement Plan”).  

The Reinstatement Plan was established for the purpose of assisting in attracting and retaining a stable pool of key managerial and professional talent and long‐term key employee commitment by providing certain supplemental retirement benefits for certain of their employees who participate in a Qualified Plan.

The Reinstatement Plan is intended to constitute an unfunded “excess benefit plan” as defined in Section 3(36) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), to the extent it provides benefits that would be paid under the Pension Plan but for the limitations of Section 415 of the Internal Revenue Code of 1974, as amended (“Code”), and an unfunded plan of deferred compensation for a select group of management or highly compensated employees for purposes of Title 1 of ERISA, to the extent it provides other benefits.

The Reinstatement Plan was amended, effective as of January 1, 2005, to comply with the requirements of the American Jobs Creation Act of 2004.

The Reinstatement Plan was amended, effective as of January 1, 2009, to provide for lump sum payments of certain benefits, to revise provisions relating to lump sum payments of de minimis benefits, to align the Reinstatement Plan to certain requirements of Section 409A of the Code, and to make certain other style and conforming changes. The terms contained therein superseded all prior iterations of the Reinstatement Plan.

The Reinstatement Plan was amended effective as of January 1, 2012 to reflect the change in the benefit formula under the Pension Plan from a 5-year final average pay formula to a 7-year final average pay formula.  

The Reinstatement Plan was being amended effective January 1, 2017 to make certain administrative clarifications.   

The Reinstatement Plan is being amended effective July 1, 2019 to provide that definition of “Pension Plan” includes Pension Plan of Public Service Enterprise Group Incorporated II. 
Section 1. Definitions

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When used herein, the words and phrases hereinafter defined shall have the following meanings unless a different meaning is clearly required by the context of the Reinstatement Plan:

1.1     “Affiliate” shall mean (a) any organization while it is a member of a controlled group of corporations (as defined in Section 414(b) of the Code) which includes PSEG; or (b) any trades or businesses (whether or not incorporated) while they are under common control (as defined in Section 414(c) of the Code) with PSEG.

1.2     “Beneficiary” shall mean any person or persons designated by a Participant who may become eligible to receive benefits provided under this Reinstatement Plan in the event of such Participant’s death.

1.3     “Benefit Commencement Date” shall mean the date that is the Participant’s last day worked plus one day. 

1.4     “Board of Directors” or “Board” shall mean the Board of Directors of Public Service Enterprise Group Incorporated.

1.5     “Cash Balance Component” shall mean the Cash Balance Component of the Pension Plan”. 

1.6     “Code” shall mean the Internal Revenue Code of 1986, as amended. A reference to a section of the Code shall also refer to any regulations and other guidance issued under that section. 

1.7     “Company” shall mean Public Service Enterprise Group Incorporated and each Participating Affiliate.

1.8     “Compensation” with respect to any Participant shall mean base salary, bonuses (as described below) and overtime up to 20% of base salary.  Compensation shall include amounts deferred to the Deferred Compensation Plan for Certain Employees of Public Service Enterprise Group Incorporated and its Affiliates (“Deferred Compensation Plan”).  For the period prior to March 5, 2010, refer to the prior Reinstatement Plan document for the definition Compensation.   
For purposes of calculating the Reinstatement Benefit payable to a Participant who is a participant in the Cash Balance Component, Compensation shall not include amounts paid prior to 2006 under the Management Incentive Compensation Plan (“MICP”) or the Senior Management Incentive Compensation Plan (“SMICP”).  For Participants who are participants in the Cash Balance Component, Compensation for any such year shall not exceed 150 percent of the Participant’s annual base salary in effect as of January 1 of that year.

For clarification purposes, all bonuses paid under the PSEG Power LLC Incentive Compensation Program for PSEG Energy Resources & Trade LLC Employees (“ER&T Plan”),     as limited hereunder, the Performance Incentive Plans (PIPs”) and the PSEG Power LLC          Incentive Compensation Program for Certain Employees of PSEG Energy Solutions LLC        

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(“Energy Solutions Plan”) are included in Compensation, except those paid under the Long Island Electric Utility ServCo LLC Performance Incentive Plan. 
 
Bonuses paid under the PIP, Energy Solutions Plan, MICP, SMICP and the ER&T Plan are included in Compensation only if the bonus is paid prior to the date of the Participant’s Separation from Service. 
 
For the year in which the Participant is hired, the base salary in effect as of the date of hire shall be used.  For Participants who are rehired, the base salary as of the date of rehire shall be used for determining Compensation of the year of the rehire. 
 
1.9     “Employee” shall mean any individual in the employ of the Company who is not included within a unit of employees covered by a collective bargaining agreement. The term “Employee” shall not include a director of the Company who serves in no capacity other than as a director, a consultant or independent contractor doing work for the Company or a person employed by a consultant or independent contractor doing work for the Company or a Participating Affiliate (regardless of whether a determination is made by the Internal Revenue Service or other governmental agency or court after the individual is engaged to perform such services that the individual is an employee of the Company for the purposes of the Code or otherwise).
 
1.10     “Employee Benefits Committee” shall mean the Employee Benefits Committee of Public Service Enterprise Group Incorporated.
1.11    “Employee Benefits Policy Committee” shall mean the Employee Benefits Policy Committee of Public Service Enterprise Group Incorporated.
1.12    “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. A reference to a section of ERISA shall also refer to any regulations and other guidance issued under that section.
1.13    “Final Average Earnings” with respect to a Participant who is entitled to a benefit under the Final Average Pay Component:
		
	(a) 
	And who incurs a Separation from Service before January 1, 2012, shall mean the annual average of the sum of:

		
	(1)
	The Participant’s highest five years of Compensation, excluding any amounts received as an award under the MICP or the SMICP, without the application of the base pay cap in Section 1.8; and

		
	(2)
	The MICP or SMICP awards for the five most recent bonus eligible years (including $0 awards) prior to the Participant’s Separation from Service.  If a Participant does not have at least five MICP/SMICP awards, the average shall be determined by using the number of bonus (including PIP bonuses, ER&T Plan bonuses and Energy Solutions Plan bonuses) eligible periods during the five most recent years. 

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Notwithstanding the foregoing, Final Average Earnings shall not exceed 150 percent of the average of the Participant’s annual base salary in effect as of January 1 for the five years prior to and including the year in which the Participant’s Separation from Service occurs.  However, for a Participant who receives an award under the ER&T Plan, Final Average Earnings shall not be less than their Final Average Earnings determined as of December 31, 2006 in accordance with the preceding paragraph, without applying the 150 percent cap in the preceding sentence.

Bonuses paid under the PIP, Energy Solutions Plan, MICP, SMICP and the ER&T Plan are included in Compensation only if the bonus is paid prior to the date of the Participant’s Separation from Service. 

		
	(b)
	With respect to a Participant who incurs a Separation from Service on or after January 1, 2012 and who is entitled to a benefit under the Final Average Pay Component, Final Average Earnings shall mean:

		
	(1)
	With respect to periods of service prior to January 1, 2012, Final Average Earnings shall be determined in accordance with subsection (a) above, except that Separation from Service shall be replaced with December 31, 2011.

		
	(2)
	With respect to periods of service after December 31, 2011, the annual average of the sum, (i) the Participant’s highest seven years of Compensation beginning after December 31, 2011, excluding any MICP and SMICP awards, and (ii) the MICP or SMICP awards for the seven most recent years (including $0 awards) beginning after December 31, 2011 and prior to the Participant’s Separation from Service, without the application of the base pay cap in Section 1.8.  If a Participant does not have at least seven MICP/SMICP awards during the seven most recent years after 2011, the average shall be determined by using the number of bonus (including PIP bonuses, ER&T Plan bonuses and Energy Solutions Plan bonuses) eligible periods after 2011 during the seven most recent years. 

Notwithstanding the foregoing, Final Average Earnings shall not exceed 150 percent of the average of the Participant’s annual base salary in effect as of January 1 for the seven years prior to and including the year in which the Participant’s Separation from Service occurs (the annual base salary prior to January 1, 2012 shall not be used in such determination).
Bonuses paid under the PIP, Energy Solutions Plan, MICP, SMICP and the ER&T Plan are included in Compensation only if the bonus is paid prior to the date of the Participant’s Separation from Service. 

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1.14     “Final Average Pay Component” shall mean the Final Average Pay Component of the Pension Plan. 

1.15    “Normal Retirement Date” shall mean the first day of the month coinciding with or next following a Participant’s attainment of age 65. In the case of a Participant who is still employed beyond age 65, Normal Retirement Date shall mean the first day of the month coinciding with or next following the date on which the Participant’s Separation from Service occurs.

1.16    “Participant” shall mean any Employee or former Employee of the Company who meets the requirements of Subsection 2.1 of the Reinstatement Plan.

1.17    “Participating Affiliate” shall mean any Affiliate of PSEG which (a) is the sponsor or a Participating Affiliate of the Qualified Plan; (b) adopts the Reinstatement Plan with the approval of the Board of Directors; (c) authorizes the Board of Directors and the Employee Benefits Committee to act for it in all matters arising under or with respect to the Reinstatement Plan; and (d) complies with such other terms and conditions relating to the Reinstatement Plan as may be imposed by the Board of Directors. Participating Affiliate shall not include Long Island Electric Utility ServCo LLC. 

1.18    “Pension Plan” shall mean the Pension Plan of Public Service Enterprise Group Incorporated and each successor or replacement plan, and the Pension Plan of Public Service Enterprise Group Incorporated II and each successor or replacement plan.

1.19    “Qualified Benefit” shall mean the aggregate annual benefit payable to a Participant pursuant to the Qualified Plan, by reason of the Participant’s termination of employment with the Company and all Affiliates for any reason other than death.

1.20    “Qualified Plan” shall mean the Final Average Pay Component or the Cash Balance Component. 
 
1.21 “Qualified Surviving Spouse Benefit” shall mean the aggregate annual benefit payable to the Surviving Spouse of a Participant pursuant to the Qualified Plan, as the case may be, in the event of the death of the Participant at any time prior to commencement of payment of the Qualified Benefit.
 
1.22     “Plan Year” shall mean the calendar year.

1.23     “Reinstatement Plan” shall mean this Retirement Income Reinstatement Plan for Non--Represented Employees of Public Service Enterprise Group Incorporated and its Affiliates.
  
1.24    “Retirement” shall be defined as follows:
 
		
	(a)
	In the case of a Participant who is a participant in the Final Average Pay          Component, Retirement shall mean a Separation from Service either (1) after attaining age 65; (2) when the sum of the Participant’s age and credited service              

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(as defined in the Final Average Pay Component) equals or exceeds 80, or (3) a disability determination under the Final Average Pay Component.

		
	(b)
	In the case of a Participant who is a participant in the Cash Balance Component, Retirement shall mean a Separation from Service after either (1) attaining age 65, (2) attaining age 55 and completing five or more years of credited service (as defined in the Cash Balance Component), or (3) a disability determination under the Cash Balance Component.

1.25    “Separation from Service” shall mean, subject to subsections (a) and (b), a Participant’s termination from employment with PSEG and all Affiliates, whether by retirement or resignation from or discharge by PSEG or an Affiliate.

		
	(a)
	A Separation from Service shall be deemed to have occurred if a Participant and PSEG or any Affiliate reasonably anticipates, based on the facts and circumstances, that either:

		
	(1)
	The Participant will not provide any additional services for PSEG or an Affiliate after a certain date; or

		
	(2)
	The level of bona fide services performed by the Participant after a certain date will permanently decrease to no more than 50 percent of the average level of bona fide services performed by the Participant over the immediately preceding 36 months.

		
	(b)
	If a Participant is absent from employment due to military leave, sick leave, or any other bona fide leave of absence authorized by PSEG or an Affiliate and there is a reasonable expectation that the Participant will return to perform services for PSEG or an Affiliate, a Separation from Service will not occur until the later of:

		
	(1)
	The first date immediately following the date that is six months after the date that the Participant was first absent from employment; or

		
	(2)
	The date the Participant no longer retains a right to reemployment, to the extent the Participant retains a right to reemployment with PSEG or any Affiliates under applicable law or by contract.

If a Participant fails to return to work upon the expiration of any military leave, sick leave, or other bona fide leave of absence where such leave is for less than six months, the Separation from Service shall occur as of the date of the expiration of such leave.

1.26    “SERP” shall mean the Supplemental Executive Retirement Income Plan for Non-Represented Employees of Public Service Enterprise Group Incorporated and Its Affiliates.  

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1.27    “Specified Employee” shall mean an individual who is a key employee (as defined in Section 416(i) of the Code without regard to Section 416(i)(5) of the Code) of PSEG or an Affiliate at any time during the 12-month period ending on each December 31 (the “identification date”). If an individual is a key employee as of an identification date, the individual shall be treated as a Specified Employee for the 12-month period beginning on the April 1 following the identification date. Notwithstanding the foregoing, an individual shall not be treated as a Specified Employee unless any stock of PSEG or an Affiliate is publicly traded on an established securities market or otherwise.

1.28     “Reinstatement Benefit” shall mean the benefit payable to a Participant pursuant to the Reinstatement Plan by reason of the Participant’s Separation from Service with PSEG and all Affiliates for any reason other than death.

1.29     “Surviving Spouse” shall mean a person who is married to a Participant at the date of the Participant’s death.

1.30     “Reinstatement Surviving Spouse Benefit” shall mean the benefit payable to a Surviving Spouse pursuant to the Reinstatement Plan.

Section 2. Eligibility

		
	2.1
	An Employee may be eligible for a Reinstatement Benefit under the Reinstatement Plan if:

		
	(a)
	For a Cash Balance Component participant, the Employee’s Compensation for a Plan Year is in excess of the Section 401(a)(17) limit for such Plan Year;

		
	(b)
	For a Final Average Pay Component participant, the Employee’s Compensation for a twelve month period used in the Final Average Earnings calculation is in excess of the Section 401(a)(17) limit for such twelve month period. 

		
	(c)
	An Employee’s whose Qualified Benefit exceeds the limit under Section 415(b) of the Code. 

		
	(d)
	An Employee who receives a bonus under the MICP or SMICP, or receives an ER&T Plan bonus above 150% of base pay. 

		
	(e)
	An Employee who pursuant to an individual agreement receives additional years of service that is not taken into account under SERP. 

		
	(f)
	Any other circumstances determined by PSEG. 

2.2    The Surviving Spouse of a Participant who dies prior to commencement of payment of their Reinstatement Benefit shall be eligible to receive a Reinstatement Surviving Spouse Benefit under the Reinstatement Plan.

2.3    If a Participant was covered under a collective bargaining agreement prior to becoming an Employee, such Participant’s service, Compensation and Qualified Benefit prior to the date the Participant became an Employee shall not be taken into account for purposes of           

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benefit accrual under the Reinstatement Plan, but shall be taken into account for purposes of          vesting and Retirement eligibility.

Section 3. Reinstatement Benefit

3.1     The Reinstatement Benefit payable to an eligible Participant shall be determined as follows:

		
	(a) 
	A Participant in the Final Average Pay Component who incurs a Separation from Service and who is eligible for a Reinstatement Benefit shall be entitled to receive a benefit as of their Normal Retirement Date equal to the excess of (1) over (2) where:

		
	(1)
	Is the amount of the Qualified Benefit to which the Participant would have been entitled under the Final Average Pay Component as of their Normal Retirement Date if such benefit were computed by applying the definition of Final Average Earnings under the Reinstatement Plan ; and

		
	(2)
	Is the amount of the Participant’s Qualified Benefit under the Final Average Pay Component as of their Normal Retirement Date.

		
	(b)
	This Reinstatement Benefit shall be calculated as a single life annuity commencing on the Participant’s Normal Retirement Date. If payment of a Participant’s Reinstatement Benefit commences or is paid before their Normal Retirement Date, the benefit amount calculated pursuant to paragraph (a) or paragraph (b) shall be reduced for early commencement in accordance with the early retirement reduction factors applicable to calculation of the Participant’s benefit under the Final Average Pay Component.

		
	(c)
	Notwithstanding any other provision of the Reinstatement Plan to the contrary, the Reinstatement Benefit payable to Frederick W. Lark and Richard D. Quinn, III, shall be calculated as of December 31, 2008 and shall be paid commencing as of January 31, 2009.

		
	(d)
	A Participant in the Cash Balance Component who is eligible for a Reinstatement Benefit shall be entitled to receive a benefit as of their Benefit Commencement Date equal to the excess of (1) over (2) where:

		
	(1)
	Is the amount of the Qualified Benefit to which the Participant would be entitled under the Cash Balance Component as of their Benefit Commencement Date if such benefit were computed by applying the definition of Compensation under the Reinstatement Plan; and

		
	(2)
	Is the amount of the Qualified Benefit payable to the Participant under the Cash Balance Component as of their Benefit Commencement Date.

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	(e)
	Notwithstanding any other provision of the Reinstatement Plan to the contrary, a Reinstatement Benefit shall be payable to a Participant in the Final Average Pay Component if the amount of the Participant’s QSERP under the Qualified Plan is more than the sum of the Participant’s Qualified Plan and Reinstatement Benefit, absent the QSERP. The amount of the Reinstatement Benefit is the difference between the QSERP amount and the sum of the Participant’s Qualified Plan and Reinstatement Benefit, absent the QSERP. 

		
	1.
	The Reinstatement Benefit payable to a Participant shall be paid:

		
	(a)
	 If the Participant’s Separation from Service occurs prior to Retirement, the present value of their Reinstatement Benefit shall be paid in a single lump sum distribution (the lump sum amount shall be based on the deferred to age 65 lump sum factor);

		
	(b)
	Except as otherwise provided in paragraph (d), if the Participant’s Separation from Service occurs on or after their Retirement, the Participant may elect to receive their Reinstatement Benefit in the form of a single life annuity or a joint and survivor annuity.

		
	(1)
	The single life annuity option is an annuity providing equal monthly payments for the lifetime of the Participant with no survivor benefits.

		
	(2)
	The joint and survivor annuity option is a reduced monthly benefit payable to the Participant for life and to a surviving named Beneficiary for the lifetime of the Beneficiary in an amount equal to 50 percent, 75 percent, or 100 percent (as elected by the Participant) of the amount payable during the Participant’s lifetime. The pop-up rules under the Qualified Plan shall apply to the Reinstatement Benefit.

		
	(c) 
	A Participant election as to an annuity form of payment pursuant to paragraph (b) shall also apply to any benefits payable to the Participant under the SERP. If a Participant fails to make a timely election, their Reinstatement Benefit shall be paid in the form of:

		
	(1)
	A single life annuity, if they are not married as of their Benefit Commencement Date; or

		
	(1)
	A 50 percent joint and survivor annuity with their spouse as Beneficiary, if they are married as of their Benefit Commencement Date. The pop-up rules under the Qualified Plan shall apply to the Reinstatement Benefit.

If a Participant elects a joint and survivor annuity, but their Beneficiary dies before the Participant’s Benefit Commencement Date, the Participant’s Reinstatement Benefit shall be paid in the form of a single life annuity unless the Participant validly elects a new form of payment pursuant to this subsection.

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	(d) 
	Notwithstanding paragraphs (b) and (c), if the Participant’s total vested benefit under the Reinstatement Plan and the SERP, as presently valued at the time of commencement of the payment of such benefit, does not exceed $30,000, their benefit under the Reinstatement Plan and the SERP shall be paid in a single lump sum distribution. If the Participant does not meet the criteria for Retirement, the lump sum amount shall be based on the deferred to age 65 lump sum factor. If the Participant does meet the criteria for Retirement, the lump sum amount shall be based on the immediate lump sum factor. 

 
3.3     Except as otherwise provided in this subsection, payment of a Participant’s Reinstatement Benefit shall commence or shall be paid within the 90-day period following Benefit Commencement Date, but in no event later than the last day permitted under Section 409A of the Code for treating a delayed payment as having been made on such payment date. Except as provided for below with respect to Specified Employees, if a Reinstatement Benefit is payable as a lump sum, no interest shall be paid to the Participant for the period between the Benefit Commencement Date and the actual payment date. 
 
If the Participant is a Specified Employee, payment of the Participant’s Reinstatement Benefit shall commence or shall be paid as of the last day of the month coinciding with or next following the six-month anniversary of the Participant’s Separation from Service. In any case where the payment of benefits is delayed pursuant to this paragraph, the Participant’s Reinstatement Benefit shall be calculated as of the Benefit Commencement Date. Any annuity payments to which the Participant would be entitled during the first six months after their Separation from Service shall be accumulated and paid to the Participant without interest as of the last day of the month coinciding with or next following the six-month anniversary of their Separation from Service. If the Participant’s Reinstatement Benefit is payable in the form of a lump sum distribution, the benefit shall be increased with interest at the rate of:

		
	(a)
	The first segment rate as determined pursuant to Section 417(e)(3)(C) and (D) of the Code for the second month preceding the first day of the Plan Year in which the Separation from Service occurs; or

 
		
	(b)
	6 percent, in the case of a Participant who is a participant in the Cash Balance Component.

 
Payment of the Participant’s Reinstatement Benefit shall not be delayed or accelerated, except as provided in this subsection. If the Employee Benefits Committee determines that a delay or acceleration of a Participant’s Reinstatement Benefit complies with the requirements of Section 409A of the Code (including an acceleration to pay employment taxes), the Employee Benefits Committee may either delay or accelerate the payment of the Reinstatement Benefit in accordance with the terms of Section 409A of the Code as it deems advisable in its sole discretion. If any payment is delayed in accordance with this paragraph, the Reinstatement Plan shall pay such delayed payments without interest following the expiration of the delay.

3.4     A Reinstatement Benefit which is payable in any form other than a single life      annuity, shall be the actuarial equivalent of the Reinstatement Benefit set forth in Subsection 3.1 

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above as determined by the same actuarial adjustments as those specified in the Qualified Plan, as the case may be, with respect to determination of the amount of the Qualified Benefit as of the Benefit Commencement Date, except as otherwise necessary to comply with Section 409A of the Code.

3.5    If a Participant who is receiving annuity payments under the Reinstatement Plan is rehired, such annuity payments shall continue during the period of reemployment.  If such Participant accrues an additional Reinstatement Benefit based on their rehired service, the additional Reinstatement Benefit shall be paid the same annuity form (or, if the Participant had elected a joint and annuity survivor annuity and the Beneficiary had died or the Participant was married and is no longer married on the second Benefit Commencement Date, an actuarially equivalent single life annuity). 

If a Participant who received a lump sum from the Reinstatement Plan and was not retirement eligible at that time is rehired, and accrues an additional Reinstatement Benefit based on their rehired service, the additional accrual shall be paid in accordance with this Section 3, provided that the payment is in accordance with Section 409A of Code.  

If a Participant who received a lump sum from the Reinstatement Plan and was retirement eligible at that time is rehired, and accrues an additional Reinstatement Benefit based on their rehired service, the additional accrual shall be paid in accordance with this Section 3, provided that the payment is in accordance with Section 409A of Code.  

3.6    With respect to Participants who had a Separation from Service prior to January 1, 2005, the provisions of the Reinstatement Plan in effect on December 31, 2004 regarding the timing and form of payment of Reinstatement Benefits shall apply. The timing and form of payment of such Reinstatement Benefits are linked to the timing and form of payment of the Qualified Benefits. As such, the Reinstatement Plan is considered “grandfathered” under Section 409A of the Code.  

Section 4. Reinstatement Surviving Spouse Benefit

4.1     If a Participant dies prior to commencement of payment of their Qualified Benefit under circumstances in which a Qualified Plan Surviving Spouse Benefit is payable to their Surviving Spouse, then a Reinstatement Surviving Spouse Benefit shall be payable to their Surviving Spouse as follows:. 

		
	(a)
	In the case of a Participant in the Final Average Pay Component, the Reinstatement Surviving Spouse Benefit shall be determined as of the Participant’s Normal Retirement Date equal to the excess of (1) over (2) where:

		
	(1) 
	Is the amount of the Qualified Plan Surviving Spouse Benefit to which the Surviving Spouse would have been entitled under the Final Average Pay Component if such benefit were computed by applying the definition of Final Average Earnings under the Reinstatement Plan; and

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	(b) 
	Is the amount of the Qualified Plan Surviving Spouse Benefit under the Final Average Pay Component.

The Reinstatement Surviving Spouse Benefit shall be calculated as a single life annuity commencing on the Participant’s Normal Retirement Date. If payment of the Reinstatement Surviving Spouse Benefit commences or is paid before the Participant’s Normal Retirement Date, the benefit amount calculated pursuant to this paragraph (a) shall be reduced for early commencement, if applicable, in accordance with the reduction factors applicable to calculation of a Qualified Plan Surviving Spouse Benefit.

		
	(a)
	In the case of a Participant in the Cash Balance Component, the Reinstatement Surviving Spouse Benefit shall be equal to the excess of (1) over (2) where:

		
	(1)
	Is the amount of the Qualified Plan Surviving Spouse Benefit to which the Surviving Spouse would be entitled under the Cash Balance Component as of the Participant’s date of death if such benefit were computed by applying the definition of Compensation under the Reinstatement Plan; and

		
	(2)
	Is the amount of the Qualified Plan Surviving Spouse Benefit actually payable to the Surviving Spouse under the Cash Balance Component as of the Participant’s date of death.

4.2     The Reinstatement Surviving Spouse Benefit shall be paid as follows: 

		
	(a)
	If the Participant’s death occurs prior to Retirement, the present value of the Reinstatement Surviving Spouse Benefit shall be paid in a lump sum distribution.

		
	(b)
	If the Participant’s death occurs on or after Retirement, the Reinstatement Surviving Spouse Benefit shall be payable over the lifetime of the Surviving Spouse in monthly installments until the Surviving Spouse’s death. Notwithstanding the preceding sentence, if the present value of the total benefit payable to the Surviving Spouse under the Reinstatement Plan and the SERP does not exceed $20,000, the benefit under the Reinstatement Plan and the SERP shall be paid in a lump sum distribution.

4.3    Payment of the Reinstatement Surviving Spouse Benefit shall commence or shall be paid within the 90-day period following the date of the death, but in no event later than the last day permitted under Section 409A of the Code for treating a delayed payment as having been made on such payment date.

Section 5. Administration of the Reinstatement Plan

5.1     The Employee Benefits Committee shall be the named fiduciary of the    Reinstatement Plan responsible for the general operation and administration of the Reinstatement 

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Plan and for carrying out the provisions thereof. The Employee Benefits Committee shall have discretionary authority to construe the terms of the Reinstatement Plan.

5.2     The Employee Benefits Committee shall adopt such rules and procedures as it      deems necessary and advisable to administer the Reinstatement Plan and to transact its business. Subject to the other requirements of this Section 5, the Employee Benefits Committee may:

		
	(a) 
	Employ agents to carry out non‐fiduciary responsibilities;

		
	(b) 
	Employ agents to carry out fiduciary responsibilities (other than trustee responsibilities as defined in Section 405(c)(3) of ERISA);

		
	(c) 
	Consult with counsel, who may be counsel to PSEG or an Affiliate; and

		
	(d) 
	Provide for the allocation of fiduciary responsibilities (other than trustee responsibilities as defined in Section 405(c)(3) of ERISA) among its members.

However, any action described in paragraphs (b) or (d) above, and any modification or rescission of any such action, may be effected by the Employee Benefits Committee only by a resolution approved by a majority of the Employee Benefits Committee. The Employee Benefits Committee shall be entitled to rely conclusively upon all tables, valuations, certificates, opinions and reports furnished by any actuary, accountant, controller, counsel or other person employed or engaged by the Employee Benefits Committee with respect to the Reinstatement Plan.

5.3    The Employee Benefits Committee shall keep written minutes of all its       proceedings, which shall be open to inspection by the Board of Directors. In the case of any        decision by the Employee Benefits Committee with respect to a claim for benefits under the Reinstatement Plan, the Employee Benefits Committee shall include in its minutes a brief explanation of the grounds upon which such decision was based.

5.4     In performing their duties, the members of the Employee Benefits Committee             shall act solely in the interest of the Participants in the Reinstatement Plan and their Beneficiaries and

		
	(a)
	For the exclusive purpose of providing benefits to Participants and their Beneficiaries;

		
	(b) 
	With the care, skill, prudence and diligence under the circumstances then        prevailing that a prudent person acting in like capacity and familiar with such      matters would use in the conduct of an enterprise of alike character and with like aims; and

		
	(c) 
	In accordance with the documents and instruments governing the Reinstatement     Plan insofar as such documents and instruments are consistent with the provisions of Title I of ERISA.

5.5     In addition to any other duties the Employee Benefits Committee may have, the Employee Benefits Committee shall review the performance of all persons to whom the           

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Employee Benefits Committee shall have delegated or allocated fiduciary duties pursuant to the provisions of this Section 5.

5.6     The Company agrees to indemnify and reimburse, to the fullest extent permitted by law, members of the Employee Benefits Committee, directors and employees of PSEG and its Affiliates, and all such former members, directors and employees, for any and all expenses, liabilities or losses arising out of any act or omission relating to the rendition of services for or the management and administration of the Reinstatement Plan.

5.7     No member of the Employee Benefits Committee nor any delegee thereof shall be personally liable by virtue of any contract, agreement or other instrument made or executed by them or on their behalf in such capacity.

Section 6. Claims Procedure and Status Determination

6.1    Claims for benefits under the Reinstatement Plan and requests for a status determination shall be filed in writing with the Employee Benefits Committee or its delegee.

6.2     In the case of a claim for benefits, written notice shall be given to the claiming Participant or Beneficiary of the disposition of such claim, setting forth specific reasons for any denial of such claim in whole or in part. If a claim is denied in whole or in part, the notice shall state that such Participant or Beneficiary may, within sixty days of the receipt of such denial, request in writing that the decision denying the claim be reviewed by the Employee Benefits Committee and provide the Employee Benefits Committee with information in support of their position by submitting such information in writing to the Secretary of the Employee Benefits Committee.

6.3     The Employee Benefits Committee shall review each claim for benefits which has been denied in whole or in part and for which such review has been requested and shall notify, in writing, the affected Participant or Beneficiary of its decision and the reasons therefor.

6.4     In the case of a request for status determination, written notice shall be given to the requesting person within a reasonable time setting forth specific reasons for the decision.

Section 7. Amendment or Termination

7.1     PSEG reserves the right to amend or terminate the Reinstatement Plan when, in the sole opinion of PSEG, such amendment or termination is advisable. Any such amendment or termination shall be made pursuant to a resolution of the Board or of the Employee Benefits Policy Committee and shall be effective as provided for in such resolution.

7.2     No amendment or termination of the Reinstatement Plan shall directly or indirectly deprive any current or former Participant, Beneficiary or Surviving Spouse of all or any portion of any Reinstatement Benefit or Reinstatement Surviving Spouse Benefit payment which has commenced prior to the effective date of such amendment or termination or the right to which has accrued on such effective date.

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7.3    In the event of a Reinstatement Plan termination, Reinstatement Benefits and Reinstatement Surviving Spouse Benefits shall be distributed in a single lump sum within 90 days after the date the Reinstatement Plan is terminated if such distribution is permitted because the Reinstatement Plan is terminated in accordance with the termination provisions of Section 409A of the Code and related regulations or, in other cases, at the earliest time otherwise permitted under the terms of the Reinstatement Plan in accordance with Section 409A of the Code and related regulations.

Section 8. General Provisions

8.1    The Reinstatement Plan at all times shall be entirely unfunded and no provision shall at any time be made with respect to segregating any assets of the Company or any Affiliate for payment of any benefits hereunder. No Participant, Beneficiary, Surviving Spouse or any other person shall have any interest in any particular assets of the Company or any Affiliate by reason of the right to receive a benefit under the Reinstatement Plan and any such Participant, Beneficiary, Surviving Spouse or other person shall have only the rights of a general unsecured creditor with respect to any rights under the Reinstatement Plan.

8.2    Except as otherwise expressly provided herein, all terms and conditions of the Qualified Plan applicable to a Qualified Benefit or a Qualified Plan Surviving Spouse Benefit shall also be applicable to a Reinstatement Benefit or a Reinstatement Surviving Spouse Benefits payable hereunder. Any Qualified Benefit Qualified Surviving Spouse Benefit, or any other benefit payable under the Qualified Plan, as the case may be, shall be paid solely in accordance with the terms and conditions of the Qualified Plan, as the case may be, and nothing in the Reinstatement Plan shall operate or be construed in any way to modify, amend or affect the terms and provisions of the Qualified Plan.

8.3     Nothing contained in the Reinstatement Plan shall constitute a guaranty by the Company or any other entity or person that the assets of PSEG or any Affiliate will be sufficient to pay any benefit hereunder.

8.4     No Participant or Surviving Spouse shall have any right to a benefit under the Reinstatement Plan except in accordance with the terms of the Reinstatement Plan. Establishment of the Reinstatement Plan shall not be construed to give any Participant the right to be retained in the service of PSEG or any Affiliate.

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

8.6     The Reinstatement Plan shall be construed and administered under the laws of the United States and the State of New Jersey to the extent not superseded by Federal law. The 

17

Reinstatement Plan is specifically intended to comply with Section 409A of the Code and it shall automatically incorporate all applicable restrictions of Section 409A of the Code and its related regulations, and PSEG will amend the Reinstatement Plan to the extent necessary to comply with those requirements.  The timing under which a Participant will have a right to receive any payment under the Reinstatement Plan will be deemed to be automatically modified, and a Participant’s rights under the Reinstatement Plan limited to conform to any requirements under the Section 409A of the Code and its related regulations.

8.7     Actuarial assumptions to determine the present value of any benefit hereunder shall be the same as used to determine the present value of benefits under the Qualified Plan.

8.8     If any person entitled to a benefit payment under the Reinstatement Plan is deemed by the Employee Benefits Committee to be incapable of personally receiving and giving a valid receipt for such payment, then, unless and until claim therefor shall have been made by a duly appointed guardian or other legal representative of such person, the Employee Benefits Committee may provide for such payment or any part thereof to be made to any other person or institution then contributing toward or providing for the care and maintenance of such person. Any such payment shall be a payment for the account of such person and a complete discharge of any liability of the Company and the Reinstatement Plan therefor.

8.9     The Reinstatement Plan shall inure to the benefit of and be binding upon the Company, its successors and assigns, including but not limited to any corporation which may acquire all or substantially all of the Company’s assets or businesses or with or into or which the Company may be consolidated or merged.

8.10     Each Participant shall keep the Company informed of their current address and the current address of their spouse. The Company shall not be obligated to search for the whereabouts of any person. If the location of a Participant is not made known to the Company within three (3) years after the date on which payment of the Reinstatement Benefit may first be made, payment may be made as though the Participant had died at the end of the three‐year period. If, within one additional year after such three‐year period has elapsed, or, within three years after the actual death of a Participant, the Company is unable to locate any. Surviving Spouse of the Participant, then the Company shall have no further obligation to pay any benefit hereunder to such Participant or Surviving Spouse or any other person and such benefit shall be irrevocably forfeited.

8.11     Notwithstanding any of the preceding provisions of the Reinstatement Plan, none of the Company, the Employee Benefits Committee or any individual acting as an employee or agent of the Company or the Employee Benefits Committee shall be liable to any Participant, former Participant, Surviving Spouse or any other person for any claim, loss, liability or expense incurred in connection with the Reinstatement Plan.

Section 9. Miscellaneous

9.1    As used herein, words in the masculine gender shall include the feminine and the singular shall include the plural, and vice versa, unless otherwise required by the context. Any 

18

headings used herein are included for ease of reference only and are not to be construed so as to alter the terms hereof.

*          *          *

/s/ Sheila Rostiac                                       10/09/19                    
Signature                                 DateExhibit

EXHIBIT 10.3

KEY EXECUTIVE SEVERANCE PLAN OF
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

Amended effective July 1, 2019

ARTICLE I
PURPOSE OF THE PLAN
		
	1.1
	Purpose. The Key Executive Severance Plan of Public Service Enterprise Group Incorporated (“Plan”) is maintained by the Company to provide severance benefits to certain key executive-level employees of the Company and its affiliates whose employment is terminated under the circumstances described herein. The Plan was amended and restated effective December 17, 2012.  

The Plan was amended effective January 1, 2014 to provide that (i) for Eligible Employees who become Schedule B Participants after December 31, 2013, their Change in Control benefit under Section 5.2(b) of the Plan shall be equal to two times Annual Base Salary and Target Bonus, and (ii) for Eligible Employees who become Schedule A Participants after December 31, 2013, their Change in Control benefit under Section 5.2(b) of the Plan shall be equal to 1.5 times Annual Base Salary and Target Bonus. The Plan was further amended to provide that the for purposes of determining the nonqualified plan change in control benefit under Section 5.5(a) of the Plan, with respect to Eligible Employees who become Schedule A or Schedule B Participants after December 31, 2013, their employment shall be assumed to have continued for 1.5 or 2 additional years (for Schedule A Participants and Schedule B Participants, respectively). Finally, the Plan was amended to update the Schedule A Participant list. 
The Plan was amended effective June 16, 2014 to (i) add a new class of eligible Participants, Schedule C Participants, (ii) to provide that there will be no additions to Schedule B Participants, (iii) to provide that other than a current Schedule B Participant, an Eligible Employee newly hired or promoted into a position reflected on Schedule B as of June 16, 2014, shall become a Schedule A Participant, and (iv) to update the Schedule A Participant list, the Schedule B Participant list and the Schedule C Participant list. 
The Plan was amended effective July 14, 2014 to update the Schedule A Participant list and the Schedule C Participant list.
The Plan was amended effective February 17, 2015 to update the Schedule A Participant list, the Schedule B Participant list and the Schedule C Participant list.
The Plan was amended effective November 18, 2015 to update the Schedule A Participant list, the Schedule B Participant list and the Schedule C Participant list, and to include the language to comply with the Securities and Exchange Commission’s whistleblower protections. 
The Plan was amended effective December 15, 2015 to update the Schedule A Participant list and the Schedule C Participant list. 
The Plan was amended effective July 19, 2016 to update the Schedule A Participant list and the Schedule C Participant list. The Plan was amended to comply with the Defense of Trade Secrets Act regarding the confidentiality provision. Finally, the Plan was amended 

to clarify that if an Eligible Employee is newly hired or promoted into a position reflected on Schedule B as of June 16, 2014, such Eligible Employee shall become a Schedule A Participant. 
The Plan was amended effective November 14, 2016 to (i) revise the definition of Cause, (ii) align the severance benefits in Article IV, (iii) align the Change in Control benefits in Article V, (iv) update the Schedule A Participant list and the Schedule C Participant list, and (v) to make administrative clarifications. The Plan is intended to comply in operation and form with Section 409A of the Internal Revenue Code of 1986, as amended (“Code”).  The timing and form of payment of benefits provided under the Plan will be deemed to be automatically modified, and a Participant’s rights under the Plan will be limited so as to conform to any requirements under Section 409A of the Code.
The Plan was amended effective February 20, 2017 to update the Schedule A Participant list. 
The Plan was amended effective April 17, 2017 to update the Schedule A Participant list and the Schedule C Participant list.
The Plan was amended effective July 18, 2017 (unless otherwise noted) to update the Schedule A Participant list, the Schedule B Participant list and the Schedule C Participant list. 
The Plan was amended effective November 20, 2017 to update the Schedule A Participant list, the Schedule B Participant list and the Schedule C Participant list. 
The Plan was amended effective July 16, 2018 to update the Schedule A Participant list and the Schedule C Participant list and to make administrative clarifications.     
The Plan was amended effective November 19, 2018 to update the Schedule A Participant list.      
The Plan was amended effective February 18, 2019 to update the Schedule A Participant list and the Schedule C list, and to make administrative changes.  
The Plan was amended effective April 15, 2019 to (i) remove the Participant lists (Schedules A - C) from the Plan, and (ii) provide that the Participant lists will be maintained by the Chief Human Resources Officer. 
The Plan is being amended effective July 1, 2019 to provide that the definition of “Retirement Plan” includes Pension Plan of Public Service Enterprise Group Incorporated II and to make administrative clarifications. 
ARTICLE II
DEFINITIONS
		
	2.1
	“Accrued Obligation” shall have the meaning set forth in Sections 4.2 and 5.2 of the Plan. 

2

		
	2.2
	“Affiliate” means any corporation, trade or business if it or the Company are members of a controlled group of corporations, are under common control or are members of an affiliated service group within the meanings of Sections 414(b), 414(c) and 414(m), respectively, of the Code.  The term “Affiliate” shall also include any other entity required to be aggregated with the Company pursuant to regulations under Section 414(o) of the Code.

		
	2.3
	“Annual Base Salary” means the annual rate of base salary payable to a Participant for services performed for an Employer, as in effect immediately prior to the Participant’s Date of Termination.

		
	2.4
	“Benefits 2000 Participant” means a Participant who is a participant in the Public Service Enterprise Group Incorporated Benefits 2000 Health and Welfare Benefits Plan.

		
	2.5
	“Board” means the board of directors of the Company.

		
	2.6
	“Cause” means:

(a)    For purposes of Article IV and Article V: 
		
	(i)
	Misconduct, gross negligence, theft, or fraud against the Company, including an isolated incident that is determined by the Committee’s delegate to be material misconduct or material gross negligence; 

		
	(ii) 
	For “Performance Reasons,” as defined in Section 2.20 of the Plan; 

		
	(iii) 
	Material violation of the Standards of Integrity or other Company policy; 

		
	(iv) 
	Insubordination, including an isolated incident that is determined by the Committee’s delegate to be material insubordination; 

		
	(v) 
	One or more significant acts of dishonesty; 

		
	(vi) 
	Any act that is likely to have the effect of injuring the reputation, business, or business relationship of, the Company, its Board of Directors, Officers, or employees, or its affiliates or subsidiaries; 

		
	(vii) 
	Violation of any fiduciary duty, including an isolated incident that is determined by the Committee’s delegate to be a material violation; 

		
	(viii) 
	Breach of any duty of loyalty including an isolated incident that is determined by the Committee’s delegate to be a material breach; 

		
	(ix) 
	Any breach of the restrictive covenants contained in Exhibit I below; 

		
	(x) 
	One or more acts of moral turpitude that constitute a violation of applicable law (included but not limited to a felony);  

		
	(xi) 
	Conviction of a felony or plea of nolo contendere to a felony charge; 

		
	(xii) 
	Pattern of behaviors that fail to meet the Company’s expectations described in “PSEG Values, Behaviors, and Leadership Competencies.” or

3

		
	(xiii)
	Any other reason determined to be Cause by the Chief Executive Officer of the Company.    

		
	 2.7
	“Change in Control” means the occurrence of any of the following events:

		
	(a)
	Any “person” (within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) is or becomes the beneficial owner within the meaning of Rule 13d-3 under the Exchange Act (a “Beneficial Owner”), directly or indirectly, of securities of the Company (not including in the securities beneficially owned by such person any securities acquired directly from the Company or its Affiliates) representing 25% or more of the combined voting power of the Company’s then outstanding securities, excluding any person who becomes such a Beneficial Owner in connection with a transaction described in clause (i) of paragraph (c) below; or

		
	(b)
	The following individuals cease for any reason to constitute a majority of the number of directors of the Company then serving:  individuals who, on the Effective Date, constitute the Board and any new director (other than a director whose initial assumption of office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election of directors of the Company) whose appointment or election by the Board or nomination for election by the Company’s stockholders was approved or recommended by a vote of at least two-thirds of the directors then still in office who either were directors on the Effective Date or whose appointment, election or nomination for election was previously so approved or recommended; or

		
	(c)
	There is consummated a merger or consolidation of the Company or any direct or indirect wholly-owned subsidiary of the Company with any other corporation, other than (i) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or any parent thereof), in combination with the ownership of any trustee or other fiduciary holding securities under an employee benefit plan of the Company or of its Affiliates, at least 75% of the combined voting power of the securities of the Company or such surviving entity or any parent thereof outstanding immediately after such merger or consolidation, or (ii) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no person is or becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing 25% or more of the combined voting power of the Company’s then outstanding securities; or

		
	(d)
	The shareholders of the Company approve a plan of complete liquidation or dissolution of the Company or there is consummated an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets, other than a sale or disposition by the Company of all or substantially all of the Company’s assets to an entity, at least 75% of the combined voting power of the 

4

voting securities of which are owned by stockholders of the Company in substantially the same proportions as their ownership of the Company immediately prior to such sale.
Notwithstanding the foregoing, a “Change in Control” shall not be deemed to have occurred by virtue of the consummation of any transaction or series of integrated transactions immediately following which the record holders of the common stock of the Company immediately prior to such transaction or series of transactions continue to have substantially the same proportionate ownership in an entity which owns all or substantially all of the assets of the Company immediately following such transaction or series of transactions.
		
	2.8
	“Class A Participant” means a Participant designated as a Class A Participant by the Committee.

		
	2.9
	“Class B Participant” means a Participant designated as a Class B Participant by the Committee.

		
	2.10
	“Class C Participant” means a Participant designated as a Class C Participant by the Committee.

		
	2.11
	“Code” means the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

		
	2.12
	“Committee” means the Organization and Compensation Committee of the Board or any successor of such Committee.

		
	2.13
	“Company” means Public Service Enterprise Group Incorporated and any successors thereto.

		
	2.14
	“Confidential Information” means all trade secrets, proprietary and confidential business information belonging to, used by, or in the possession of the Company or any of its Affiliates, including but not limited to information, knowledge or data related to business strategies, plans and financial information, mergers, acquisitions or consolidations, purchase or sale of property, leasing, pricing, sales programs or tactics, actual or past sellers, purchasers, lessees, lessors or customers, those with whom the Company or its Affiliates has begun negotiations for new business, costs, employee compensation, marketing and development plans, inventions and technology, whether such confidential information, knowledge or data is oral, written or electronically recorded or stored, except information in the public domain, information known by the Participant prior to employment with an Employer, and information received by the Participant from sources other than the Company or its Affiliates, without obligation of confidentiality.

		
	2.15
	“Date of Termination” means, provided that the termination constitutes a Separation from Service, (i) the date of a Participant’s death, (ii) the date on which the termination of the Participant’s employment by an Employer for Cause or without Cause, or (iii) the date on which the Participant terminates employment for Good Reason or without Good Reason, including Retirement and Disability.

5

		
	2.16
	“Disability” means (a) if the Participant is a participant in the Retirement Plan, the Participant is determined to be totally and permanently disabled by the Company’s medical director; or (ii) if the Participant is a participant in the Cash Balance Plan, the Participant is receiving benefits from the Company’s long-term disability plan.

		
	2.17
	“Eligible Employee” means an individual who is designated as such in accordance with Section 3.1. An Eligible Employee shall not include a “project employee.” 

		
	2.18
	“Effective Date” of the amendment and restatement is July 1, 2019. 

		
	2.19
	“Employer” means the Company and each Affiliate, and any successors thereto.

		
	2.20
	“Good Reason” means: 

		
	(a)
	Any material reduction in the Participant’s Annual Base Salary, Target Bonus or Target Long-Term Incentive, other than reductions pursuant to a broad-based compensation reduction program or policy affecting the Participant and all similarly situated employees of the Employer. Notwithstanding the foregoing, this Subsection (a) shall not apply if the Participant moves into a position with ER&T;

		
	(b)
	Any material adverse change in the Participant’s title, authority, duties, or responsibilities or the assignment to the Participant of any duties or responsibilities inconsistent in any respect with those customarily associated with the position of the Participant immediately prior to the Change in Control.  Notwithstanding the foregoing, this Subsection (b) shall not apply if the Participant moves into a position with ER&T;

		
	(c)
	The failure of any successor to the Company to assume this Plan in accordance with Section 11.5(b); 

		
	(d)
	Where the only comparable position offered to the Participant within the Employer following a Change in Control would otherwise meet the requirements of Subsections (a) and (b) of this Section 2.17 of the Plan, but would require the Participant to increase their one-way commuting distance from their principal residence by more than 50 miles; or

		
	(e)
	Any other material breach of the terms of the Plan by the Company that either is not taken in good faith or, even if taken in good faith, is not remedied by the Company promptly after receipt of notice thereof from the Participant.

Notwithstanding the forgoing, for purposes of the Plan, the termination of a Participant’s employment with an Employer shall not be deemed to be for Good Reason unless such termination is effected in accordance with the following procedures. The Participant shall give the Employer a written notice (“Notice of Termination for Good Reason”) of the termination, setting forth in reasonable detail the specific acts or omissions of the Employer that constitute Good Reason and the specific provision(s) of the Plan on which the Participant relies. Unless the Committee determines otherwise, a Notice of Termination for Good Reason by the Participant must be made within 60 days after the Participant first has 

6

actual knowledge of the act or omission (or the last in a series of acts or omissions) that the Participant alleges to constitute Good Reason, and the Employer shall have 30 days from the receipt of such Notice of Termination for Good Reason to cure the conduct cited therein. A termination of employment by the Participant for Good Reason shall be effective on the final day of such 30-day cure period unless prior to such time the Employer has cured the specific conduct asserted by the Participant to constitute Good Reason to the reasonable satisfaction of the Participant.
For purposes of the Plan, a Participant’s determination that an act or failure to act constitutes Good Reason shall be presumed to be valid unless such determination is decided to be unreasonable by the Committee or its delegate pursuant to Article IX.
		
	2.21
	“Nonqualified Plan” means the Retirement Income Reinstatement Plan for Non‐Represented Employees of Public Service Enterprise Group Incorporated.

		
	2.22
	“Participant” means an Eligible Employee who has been designated by the Committee to participate in the Plan. 

		
	2.23
	“Performance Reasons” means the Participant’s failure meet the expectations established for such Participant’s function in the Company as: (i) communicated to the Participant by their manager during any performance review, or (ii) may be communicated to the Participant otherwise by their manager from time to time either orally or in writing.

		
	2.24
	“Plan” means this Key Executive Severance Plan of Public Service Enterprise Group Incorporated, as set forth herein and as may be amended, modified or supplemented from time to time.

		
	2.25
	“Prior Equity Awards” means outstanding stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and performance shares units. 

		
	2.26
	“Retiree Medical Plan” means the Public Service Enterprise Group Incorporated Medical Benefits Plan for Retired Employees.

		
	2.27
	“Retirement” means a Separation from Service after the Participant has satisfied the eligibility requirements for early or normal retirement under the terms of the Retirement Plan in which the Participant participates. Notwithstanding the foregoing, for the purposes of determining benefit entitlements under Article V of the Plan, Retirement shall not include forced retirements or any termination by an Employer without Cause or voluntary termination by the Participant for Good Reason that occurs on a date on which the Participant is Retirement eligible.

		
	2.28
	“Retirement Plan” means the retirement plan in which the Participant participates, which is either the Pension Plan of Public Service Enterprise Group Incorporated or Pension Plan of Public Service Enterprise Group Incorporated II. 

		
	2.29
	“Selectline Participant” means a Participant who is a participant in the Public Service Enterprise Group Incorporated Selectline Benefits Plan. 

7

		
	2.30
	“Separation from Service” shall be deemed to have occurred if a Participant and the Company or any Affiliate reasonably anticipates, based on the facts and circumstances, that either:

		
	(a)
	The Participant will not provide any additional services for the Company or an Affiliate after a certain date; or

		
	(b)
	The level of bona fide services performed by the Participant after a certain date will permanently decrease to no more than 50 percent of the average level of bona fide services performed by the Participant over the immediately preceding 36 months.

If a Participant is absent from employment due to military leave, sick leave or any other bona fide leave of absence authorized by the Company or an Affiliate and there is a reasonable expectation that the Participant will return to perform services for the Company or an Affiliate, a Separation from Service will not occur until the later of: (i) the first date immediately following the date that is six months after the date that the Participant was first absent from employment; or (ii) the date the Participant no longer retains a right to reemployment, to the extent the Participant retains a right to reemployment with the Company or any Affiliates under applicable law or by contract. If a Participant fails to return to work upon the expiration of any military leave, sick leave or other bona fide leave of absence where such leave is for less than six months, the Separation from Service shall occur as of the date of the expiration of such leave, unless a greater period is provided for under applicable law.
		
	2.31
	“Specified Employee” means any individual who is a key employee (as defined in Section 416(i) of the Code without regard to Section 416(i)(5) of the Code) of the Company at any time during the 12-month period ending on each December 31 (the “identification date”). If an individual is a key employee as of an identification date, the individual shall be treated as a Specified Employee for the 12-month period beginning on the April 1 following the identification date. Notwithstanding the foregoing, an individual shall not be treated as a Specified Employee unless any stock of the Company or an Affiliate is publicly traded on an established securities market or otherwise.

		
	2.32
	“Target Bonus” means the Participant’s target annual bonus, if any, under the applicable annual incentive compensation plan of the Company for the fiscal year in which the Date of Termination occurs.

		
	2.33
	“Target Long-Term Incentive” means the Participant’s target long-term incentive award, if any, under the applicable long-term incentive compensation plan of the Company.

ARTICLE III
ELIGIBILITY AND PARTICIPATION 
		
	3.1
	Eligible Employees. Eligibility to participate in the Plan shall be limited to certain key executives of an Employer who (a) are not parties to individual employment or change in control agreements that provide for severance benefits, and (b) are designated, by duly adopted resolution of the Committee, as Eligible Employees. 

8

		
	3.2
	Participation.  An employee who becomes an Eligible Employee on or after January 1, 2014 shall be referred to as a Class C Participant.  However, if an Eligible Employee is newly hired or promoted into one of the following positions (Chairman of the Board, President and CEO, President & COO - PSEG Power, EVP & General Counsel, EVP & CFO, PSEG, President & COO, PSE&G and COB, PSEGLI), the Eligible Employee shall be referred to as a Class A Participant.  The Participant lists of Class A Participants, Class B Participants and Class C Participants shall be maintained by the Chief Human Resources Officer.  

		
	3.3
	Release of Claims. Notwithstanding anything in the Plan to the contrary, payment of any benefits under the Plan is expressly contingent upon the Participant’s execution and delivery to the Company, within 30 days after the Participant’s Date of Termination, of a written agreement provided by the Company, wherein the Participant releases and discharges the Company and each of its Affiliates of any and all claims against the Company and its Affiliates related in any way to the Participant’s employment with an Employer and the termination of such employment.  

		
	3.4
	Committee Discretion. The Committee shall have the sole discretion to determine eligibility for benefits under the Plan. 

ARTICLE IV
SEVERANCE BENEFITS IN GENERAL
		
	4.1
	Eligible Terminations. If a Participant’s employment is involuntarily terminated by an Employer for any reason other than Cause, the Participant shall be eligible for the benefits described in this Article IV.   

If a Participant terminates employment for Good Reason, other than in connection with a change in employment on account of Performance Reasons, the Participant shall be eligible for the benefits described in this Article IV.
If a Participant experiences a cessation of employment in connection with a reduction in force or an Employer reorganization (as determined by the Committee) where the only position offered to the Participant within the Company and Affiliates would require the Participant to increase their one-way commuting distance by more than 50 miles, the Participant shall be eligible for benefits described in this Article IV.
For the avoidance of any doubt, a Participant shall not be entitled to benefits under the Plan if termination from employment is the result of death, Disability, the Participant voluntarily terminates employment, except for Good Reason other than in connection with a change in employment on account of Performance Reasons. Also, the Participant shall not be entitled to benefits under the Plan if the Participant’s cessation of employment is in connection with the sale of the Participant’s Employer, line or unit of business of the Employer within which the Participant’s position is located, business function of the Employer within which the Participant’s position is located, or the assets related to the Employer, line or unit or business, or business function within which the Participant’s position is located, and the Participant accepts employment with the purchaser within 90 

9

days of the closing of the transaction in a position that has an annual rate of base salary that is at least 80 percent of the Participant’s annual rate of base salary immediately prior to the closing of the sale. 
 If a Participant enters into a Voluntary Separation Agreement (“VSA”) with an Employer, such Participant shall not be eligible for benefits under the Plan.  
 
		
	4.2
	Cash payment. The Company shall pay to the Participant a lump sum, in cash, the sum of (a) and (b):

		
	(a)
	The Participant’s base salary through the Date of Termination to the extent not theretofore paid (hereinafter referred to as the “Accrued Obligations”); and

		
	(b)
	An amount equal to the product of 1.0 times (0.5 times if the Participant were employed less than one year) the sum of the Participant’s Annual Base Salary and Target Bonus.

		
	4.3
	Long-Term Incentive Awards. The treatment of Prior Equity Awards shall be governed by the terms of the Long-Term Incentive Plan and the related award agreements. 

		
	4.4
	Annual Incentive Awards. The Participant shall receive a prorated annual incentive award pursuant to the performance incentive program, if applicable, for the calendar year in which the Participant’s Termination of Employment occurs. The award shall be calculated based solely on 100 percent of the target incentive award and prorated based on the number of calendar days of employment in the calendar year in which the Participant’s termination occurs through the Participant’s Date of Termination. For purposes of this Section 4.4, calendar year shall mean 365 days. 

Annual incentive awards with respect to the calendar year in which a Participant’s Date of Termination occurs will be paid at the same time as awards for such calendar year are paid to active employees of the Employer.
		
	4.5
	Outplacement Services. Outplacement services approved by the Committee, which may include individual or group counseling and administrative assistance or workshops, shall be available beginning on the Participant’s Date of Termination or such earlier date designated by the Participant’s business unit leadership. Outplacement services shall continue to be available for the period up to 12 months and up to a maximum Company cost of $25,000.

		
	4.6
	Educational Assistance. Educational assistance shall be provided in accordance with the Employer’s tuition program.  

		
	4.7
	Health Care Benefits.

		
	(a)
	Medical Coverage for Selectline Participants.  

		
	(i)
	A Selectline Participant who has satisfied the eligibility requirements for medical coverage under the Retiree Medical Plan on the Date of       

10

Termination shall be eligible to elect coverage thereunder in accordance with the terms of the Retiree Medical Plan. 
		
	(ii)
	A Selectline Participant who has not otherwise satisfied the eligibility criteria for participation in the Retiree Medical Plan prior to the Date of Termination, shall be eligible to elect coverage under the Retiree Medical Plan as though such Selectline Participant has otherwise satisfied the eligibility requirements if:

		
	(A)
	The Selectline Participant has attained age 50 and completed ten or more Years of Service as of the Date of Termination but the sum of the Selectline Participant’s age and Years of Service is less than 80; or

		
	(B)
	The Selectline Participant has attained age 49 and completed 20 or more Years of Service as of the Date of Termination but the sum of the Selectline Participant’s age and Years of Service is less than 80.

Such coverage shall commence no earlier than the Selectline Participant’s Date of Termination.  The Selectline Participant shall be charged the full cost of coverage under the Retiree Medical Plan.
		
	(iii)
	If a Selectline Participant who is not eligible for, or does not elect, coverage under the Retiree Medical Plan, timely elects continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Employer shall pay the same portion of the cost of medical and/or dental coverage that it paid immediately prior to the Selectline Participant’s Date of Termination for active employees during the one-year period following the Selectline Participant’s Date of Termination. During the one-year period, the Participant shall pay the difference between the total cost of medical and/or dental coverage and the Employer’s portion of the cost. After the expiration of the one-year period, the Selectline Participant shall be charged the COBRA rate for medical and/or dental coverage for the remainder of the COBRA period. If the Participant does not timely elect COBRA medical and/or dental coverage, the Participant shall not be entitled to the benefit under this Subsection (iii). Following the one-year period, the Selectline Participant shall not be permitted to elect coverage, or be covered, under the Retiree Medical Plan. During the entire COBRA period, the Selectline Participant shall be responsible for the full cost of COBRA vision and hearing coverage, as applicable.  

		
	(b)
	Medical Coverage for Benefits 2000 Participants.  If a Benefits 2000 Participant who is not eligible for, or does not elect, coverage under the Retiree Plan, timely elects COBRA continuation medical and/or dental coverage, the Employer shall pay the same portion of the cost of medical and/or dental coverage that it paid immediately prior to the Participant’s Date of Termination for active employees during the one-year period following the Participant’s Date of Termination. During the one-year period, the Participant shall pay the difference between the total cost of medical and/or dental coverage and the Employer’s portion of the cost. After the 

11

expiration of the one-year period, the Benefits 2000 Participant shall be charged the COBRA rate for medical and/or dental coverage for the remainder of the COBRA period. If the Participant does not timely elect COBRA medical and/or dental coverage, the Participant shall not be entitled to the benefit under this Subsection (b). Following the one-year period, the Benefits 2000 Participant shall not be permitted to elect coverage, or be covered, under the Retiree Medical Plan. During the entire COBRA period, the Benefits 2000 Participant shall be responsible for the full cost of COBRA vision. 
		
	4.8
	Other Benefits. A Participant shall not be entitled to any severance, separation or early retirement incentive pay or benefits other than as provided hereunder or under any qualified or nonqualified retirement plan or deferred compensation arrangement maintained by the Employer.  Except as provided in the foregoing sentence, a Participant’s rights under any other employee benefit plans maintained by the Company or an Affiliate shall be determined in accordance with the provisions of such plans, including the Company’s right to amend or terminate such plans at any time. 

ARTICLE V
SEVERANCE BENEFITS AFTER A CHANGE IN CONTROL
		
	5.1
	Eligible Terminations After a Change in Control.  If, within two years following the occurrence of a Change in Control, either (a) an Employer shall terminate a Participant’s employment for any reason other than for Cause, or (b) a Participant shall voluntarily terminate employment for Good Reason, the Participant shall be eligible for benefits described in this Article V of the Plan. Notwithstanding anything in the Plan to the contrary, a Participant shall not be entitled to benefits under the Plan if termination from employment is the result of death, Disability or the Participant voluntarily terminates employment, except for Good Reason and except as otherwise provided under the Plan. 

If a Participant enters into a VSA with an Employer, such Participant shall not be eligible for benefits under the Plan.  

		
	5.2 
	Cash Payment. The Company shall pay to the Participant, in a lump sum in cash, the aggregate of the amounts in (a) and (b) below:

(a)     The sum of:
		
	(i)
	The Participant’s base salary through the Date of Termination; and 

		
	(ii)
	The product of (x) the Participant’s Target Bonus and (y) a fraction, the numerator of which is the number of days in the current calendar year through the Date of Termination, and the denominator of which is 365;  

in each case to the extent not theretofore paid (the sum of the amounts described in clauses (i) and (ii) shall be hereinafter referred to as the “Accrued Obligations”); and
    
		
	(b)
	Either (i), (ii) or (iii):

12

		
	(i)
	In the case of a Class A Participant, the amount equal to the product of two times the sum of the Class A Participant’s Annual Base Salary and Target Bonus;  

		
	(ii)
	In the case of a Class B Participant, the amount equal to the product of three times the sum of the Class B Participant’s Annual Base Salary and Target Bonus; or 

		
	(iii)
	In the case of a Class C Participant, the amount equal to the product of one and one-half times the sum of the Class C Participant’s Annual Base Salary and Target Bonus.

		
	 5.3 
	Long Term Incentive Awards.  The treatment of Prior Equity Awards shall be governed by the terms of the Long-Term Incentive Plan and the related award agreements.

		
	 5.4
	Health Care and Other Welfare Benefits. The Company shall pay the cost of the continued coverage of the Participant and/or the Participant’s family under the Company’s medical and dental employee benefit plans for 18 months after the Date of Termination provided that the Participant timely makes an election to continue such coverage in the Company’s medical and dental employee benefit plans under COBRA, subject to the requirements and limitations thereof. Unless otherwise limited by applicable law, thereafter, the Company shall pay the cost of the continued coverage of the Participant and/or the Participant’s        family under the Company’s medical and dental employee benefit plans for an additional period of six months, in the case of a Class A Participant, or 18 months, in the case of a Class B Participant (for a Class C Participant, no additional period beyond the initial 18 months); provided however, that if the Participant becomes re-employed with another employer and is eligible to receive medical or dental benefits under another employer provided plan, the medical and dental benefits provided by the Company under this Plan shall be secondary to those provided under such other plan during the applicable period of eligibility. If the Participant does not timely elect COBRA coverage, the Participant shall not be entitled to the COBRA continuation benefit under this Section 5.4 of the Plan.

Unless otherwise limited by applicable law or by a third-party vendor contract, for two      years after the Date of Termination in the case of a Class A Participant,  three years after the Date of Termination in the case of a Class B Participant, or in the case of a Class C Participant, eighteen months after the Date of Termination (or for any Participant such     longer period as may be provided by the terms of the appropriate plan, program, practice or policy), the Company shall continue benefits (other than medical and dental benefits) to the Participant and/or the Participant’s family at least equal to those which would have      been provided to them in accordance with the welfare plans, programs, practices and     policies maintained by the Company if the Participant’s employment had not been   terminated or, if more favorable to the Participant, as in effect generally at any time      thereafter with respect to other peer executives of the Employer and their families.  
Unless otherwise limited by applicable law or by a third-party vendor contract, the Participant’s eligibility (but not the time of commencement of such benefits) for retiree benefits pursuant to the welfare plans, programs, practices and policies maintained by the Company shall be determined as if the Participant had (A) remained employed until two 

13

years (in the case of a Class A Participant), three years (in the case of a Class B Participant), or eighteen months (in the case of a Class C Participant) after the Date of Termination and (B) retired on the last day of such period. 
		
	5.5 
	Nonqualified Pension Benefit. The Participant shall be paid, in a lump sum payment in cash, an amount equal to the excess of (a) - (b): 

		
	(a)
	The actuarial equivalent of the benefit under the Company’s applicable Retirement Plan (utilizing the rate used to determine lump sums and, to the extent applicable, other actuarial assumptions no less favorable to the Participant than those in effect under the Retirement Plan immediately prior to the Effective Date), any benefit under the Nonqualified Plan and, to the extent applicable, any other defined benefit retirement arrangement between the Participant and the Company (“Other Pension Benefits”) which the Participant would receive if the Participant’s employment continued for two, three or one and one-half additional years (for Class A Participants, Class B and Class C Participants, respectively) beyond the Date of Termination and, assuming that the Participant’s compensation for such deemed additional period was the Participant’s Annual Base Salary as in effect immediately prior to the Date of Termination and assuming a bonus in each year during such deemed additional period equal to the Target Bonus, 

		
	(b)
	The actuarial equivalent of the Participant’s actual benefit (paid or payable), if any, under the Retirement Plan, the Nonqualified Plan and Other Pension Benefits as of the Date of Termination (utilizing the rate used to determine lump sums and, to the extent applicable, other actuarial assumptions no less favorable to the Participant than those in effect under the Retirement Plan immediately prior to the effective date of the Change in Control).

		
	5.6
	Deferred Compensation.  Any compensation previously deferred (other than pursuant to a tax-qualified plan) by or on behalf of the Participant (together with any accrued interest or earnings thereon), whether or not then vested, shall become vested on the Date of Termination and shall be paid in accordance with the terms of the applicable deferred compensation plan, policy or practice under which it was deferred to the extent permitted by Section 409A of the Code.

		
	5.7
	Outplacement Services. The Company shall, at its sole expense as incurred, provide the Participant with outplacement services suitable to the Participant’s position for a period not to exceed one year following the Date of Termination with a nationally recognized outplacement firm and up to a maximum Company cost of $25,000.

		
	5.8
	Other Benefits. To the extent not theretofore paid or provided, the Company shall pay or provide to the Participant any other amounts or benefits required to be paid or provided or which the Participant is entitled to receive under any plan, program, policy, practice, contract or agreement of the Company (or other Employer), including earned but unpaid stock and similar compensation, but excluding medical or dental benefits if the Participant is eligible for such benefits to be provided by a subsequent employer, and benefits payable under any severance plan or policy. For the one year period following the Participant’s        

14

Date of Termination, the Company will pay the cost of the Participant’s life insurance coverage.
		
	 5.9
	Termination By Employer For Cause or By Participant Other Than For Good Reason. If, at any time after a Change in Control, either (a) an Employer shall terminate a participant’s employment for Cause or (b) the Participant shall voluntarily terminate employment other than for Good Reason, the Employer shall have no further payment obligations to the Participant other than for the Participant’s base salary through the Date of Termination and any accrued but unpaid vacation pay. In such case, all such amounts shall be paid to the Participant in a lump sum in accordance with Section 6.1 of the Plan.

		
	5.10
	Death. If a Participant’s employment terminates by reason of the Participant’s death after a Change in Control, all Accrued Obligations as of the time of death shall be paid to the Participant’s estate or beneficiary, as applicable, in a lump sum in cash in accordance with Section 6.1 of the Plan. The Participant’s estate or beneficiary shall be entitled to any Other Benefits in accordance with their terms.  The treatment of Prior Equity Awards shall be governed by the terms of the Long-Term Incentive Plan and the related award agreements.

		
	5.11
	Disability. If a Participant’s employment is terminated by reason of Disability after a Change in Control, all Accrued Obligations shall be paid to the Participant in a lump sum in cash in accordance with Section 6.1 of the Plan. The treatment of Prior Equity Awards shall be governed by the terms of the Long-Term Incentive Plan and the related award agreements. 

		
	5.12
	Retirement. If a Participant’s employment terminates as a result of Retirement after a Change in Control, the Participant shall be paid the Accrued Obligations in a lump sum in cash in accordance with Section 6.1 of the Plan and the Participant shall be entitled to any Other Benefits in accordance with their terms. The treatment of Prior Equity Awards shall be governed by the terms of the Long-Term Incentive Plan and the related award agreements.

ARTICLE VI
TIMING OF, LIMITATIONS ON AND ADJUSTMENTS TO PLAN PAYMENTS
		
	6.1
	Time of Payments. Payments under the Plan shall be made to the Participant as follows: 

		
	(b)
	With respect to benefits, except those under Sections 4.4 and 5.10    of the Plan, payment to a Participant who is not a Specified Employee shall be made within the 60-day period following the Participant’s Date of Termination. However, if the period to consider and revoke the written agreement required to receive the benefits described in Articles IV and V of the Plan (i.e., the waiver and release) spans two taxable years, in all events the payments will be made in the second taxable year within 30 days following the later of the end of the first taxable year or the date the executed release is received by the Company. 

		
	(c)
	With respect to benefits under Section 5.10 of the Plan, payment shall be made within the 60-day period following the Participant’s date of the Participant’s death.  

15

		
	(d)
	With respect to benefits under Section 4.4 of the Plan, payments shall be made to the Participant at the same time the payments are made to active employees. 

		
	(e)
	Notwithstanding anything to the contrary in the Plan, to the extent necessary to comply with Section 409A of the Code, payments to a Participant who is a Specified Employee shall be made within the 60-day period following the six-month anniversary of the Participant’s Date of Termination (other than by reason of death). 

		
	(f)
	All payments under the Plan that are reimbursements of covered expenses incurred by the Participant shall be made within the taxable year in which the expense is incurred.

		
	6.2
	Payment Offsets. Notwithstanding anything in the Plan to the contrary, in the event a Participant is entitled to receive severance payments both under this Plan and under the terms of either (a) an individual change of control or employment agreement, (b) another severance pay plan or policy of an Employer or (c) any existing or future law or regulation, the benefits payable under this Plan shall be reduced by the amount of any severance benefits such Participant is entitled to receive under such individual agreement, plan, policy, law or regulation.

		
	6.3
	Cap on Excess Parachute Payments; Gross-Up Payments. Notwithstanding anything in the Plan to the contrary, if (a) a Participant is a “disqualified individual” (as defined in Section 280G(c) of the Code) and (b) the severance benefits provided under Articles IV or V, as applicable, together with any other payments the Participant has the right to receive from an Employer, would constitute a “parachute payment” (as defined in Section 280G(b) of the Code) (“Parachute Payments”), the following provisions shall apply:

		
	(a)
	The severance benefits under Articles IV or V shall not exceed an amount which, together with any other Parachute Payments, the Participant has a right to receive from the Employer, would be 2.99 times the Participant’s “base amount” (as defined in Section 280G of the Code) so that no portion of the amounts received by the Participant shall be subject to the excise tax imposed under Section 4999 of the Code.

		
	(b) 
	The determination of whether any limitation on the severance benefits payable under Articles IV or V is necessary shall be made by the Company’s independent auditor or such other certified public accounting firm as may be jointly designated by the Participant and the Company (the “Accounting Firm”), which shall provide detailed supporting calculations to the Participant and the Company. The determinations of the Accounting Firm shall be conclusive and binding on the Company and the Participant. All fees and expenses of the Accounting Firm shall be borne solely by the Company.

		
	(c)
	If through error or otherwise, a Participant shall receive payments under the Plan, together with other Parachute Payments the Participant has the right to receive from an Employer, in excess of 2.99 times the Participant’s base amount, the Participant 

16

shall immediately repay the excess to the Employer upon notification from the Employer that an overpayment has been made. If the Participant fails to repay the excess to the Employer within 10 business days of the date of the Employer’s notification, the Participant will become liable to the Employer for an amount equal to two (2) times the excess amount.
		
	6.4
	Compliance with Section 409A of the Code. Notwithstanding anything in the Plan to the contrary, all Plan benefit obligations and payments are subject to Section 409A of the Code.  To the extent required, the Company may modify the severance benefits payable hereunder to comply with Section 409A of the Code; provided, however, that the present value of the aggregate Plan benefits payable to a Participant after such modification shall not be less than the present value of the Plan benefits payable to the Participant prior to the modification.

		
	6.5
	Tax Withholding. Notwithstanding any other provision of this Plan, the Company may withhold from any amounts payable under this Plan such Federal, state, local, employment or foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation.

ARTICLE VII
RESTRICTIVE COVENANTS
		
	7.1
	Confidentiality. As a condition to participation in the Plan, each Participant agrees to hold in a fiduciary capacity for the benefit of the Company and its Affiliates all Confidential Information which shall have been obtained by the Participant during the Participant’s employment by the Employer; except, however, that this Section 7.1 shall not apply to Confidential Information that is or becomes public knowledge, unless such Confidential Information became or becomes public knowledge due to acts of the Participant or representatives of the Participant in violation of this Section 7.1. Upon termination of the Participant’s employment, the Participant shall return to the Company all Confidential Information in their possession.  After termination of the Participant’s employment with the Employer, the Participant shall not, without the prior written consent of the Company or as may otherwise be required by law or legal process, communicate or divulge any such Confidential Information to anyone other than the Company and those designated by it, except (a) otherwise publicly available information, (b) as may be necessary to enforce the Participant’s rights under the Plan or as necessary for the Participant to defend  against a claim asserted directly or indirectly by the Company or its Affiliates, or (c) as may be compelled by service of a valid subpoena or other legal process (if the Participant is served with a valid subpoena or other legal process, the Participant must so notify the Company within three business days). Furthermore, nothing contained in this Plan prevents a Participant from disclosing without notice to the Company any perceived violation of law to any Federal, state, or local governmental agency or entity including, but not limited to, the Securities and Exchange Commission, or making other disclosures that are protected under the whistleblower provisions of any law. Finally, nothing in this Plan prevents a Participant - nor should a Participant be held civilly or criminally liable under any law - if the Participant discloses a trade secret: (a) in confidence to a Federal, State or local 

17

government official, either directly or indirectly, or to an attorney solely for the purpose of reporting or investigating a suspected violation of law; (b) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; (c) to the Participant’s attorney in connection with a lawsuit alleging retaliation by an employer for reporting a suspected violation of law; or (d) in connection with a lawsuit described in the immediately preceding subparagraph (c), provided the Participant: (i) files any document containing the trade secret under seal; and (ii) does not disclose the trade secret, except pursuant to a court order. Unless and until a determination has been made in accordance with Section 7.4 that the Participant has violated this Section 7.1, an asserted violation of the provisions of this Section 7.1 shall not constitute a basis for deferring or withholding any amounts otherwise payable to the Participant under the Plan.  
		
	7.2
	Non-Compete. As a condition to participation in the Plan, each Participant agrees that in the event the Participant voluntarily terminates employment other than for Good Reason, for the period of one year from Date of Termination, the Participant will not, without the written consent of the Company, directly or indirectly own, manage, operate, join, control, become employed by, consult to or participate in the ownership, management, or control of any business which is in direct competition with the Company or its Affiliates.

		
	7.3
	Non-Solicitation. As a condition to participation in the Plan, each Participant agrees that, in the event the Participant voluntarily terminates employment other than for Good Reason, for the period of one year following the Date of Termination, the Participant will not, directly or indirectly, solicit or hire, or encourage the solicitation or hiring by any employer other than the Company or its Affiliates, for any position as an employee, independent contractor, consultant or otherwise, any person who was a managerial or higher level employee of an Employer at any time during the term of the Participant’s employment by the Employer; provided, however, that this provision shall not apply with respect to the solicitation of any person after six months from the date on which such person’s employment by an Employer has terminated.

		
	7.4
	Enforcement. In the event of a breach by the Participant of any of the covenants set forth in this Article VII, it is agreed that the Company shall suffer irreparable harm for which money damages are not an adequate remedy, and that, in the event of such breach, the Company shall be entitled to obtain an order of a court of competent jurisdiction for equitable relief from such breach, including, but not limited to, temporary restraining orders and preliminary and/or permanent injunctions against the breach of such covenants by the Participant.  In the event that the Company should initiate any legal action for the breach or enforcement of any of the provisions contained in this Article VII and the Company does not prevail in such action, the Company shall promptly reimburse the Participant the full amount of any court costs, filing fees, attorney’s fees which the Participant incurs in defending such action, and any loss of income during the period of such litigation.

Nothing in this Plan prohibits the Participant from reporting possible violations of Federal law or regulation to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress, and any agency Inspector General, or making other disclosures that are protected under the 

18

whistleblower provisions of Federal law or regulation. The Participant does not need the prior authorization of the Law Department to make any such reports or disclosures, and is not required to notify the Company that such reports or disclosures have been made.
 
ARTICLE VIII
AMENDMENT AND TERMINATION
		
	8.1
	Amendment. The Company may amend this Plan at any time, and from time to time, by action of the Committee; provided, however, that no amendment adopted after the effective date of a Change in Control shall have the effect of either (a) removing an individual from the list of Participants, (b) adding conditions for participation or the entitlement to receive benefits hereunder, (c) reducing the amount of benefits payable to a Participant, or (d) otherwise restricting a Participant’s right to receive benefits under the Plan, except as may otherwise be required to conform such payments to the requirements of Section 409A of the Code.

		
	8.2
	Termination. The Committee may terminate the Plan at any time prior to a Change in Control. The Plan may not be terminated after the effective date of a Change in Control.

ARTICLE IX
ADMINISTRATION
		
	9.1
	Plan Administrator. The Plan shall be administered by the Committee, which shall have the duties and responsibilities for administering the Plan as are specifically set forth in this Article IX.

		
	9.2
	Responsibilities of Committee.  

		
	(g)
	The Committee shall have responsibility for the day to day administration of the Plan. In addition, the Committee shall have the specific powers, duties, responsibilities and obligations specifically provided for herein.

		
	(b)
	Subject to the express provisions of the Plan, the Committee shall have full and exclusive authority to interpret the Plan and to make all other factual determinations deemed necessary or advisable in the implementation and administration of the Plan, including but not limited to determinations with respect to the eligibility of Participants to receive benefits under the Plan and the status and rights of such Participants and all other persons affected hereunder. The Committee’s interpretation and construction of the Plan shall be conclusive and binding on all persons.

		
	(c)
	The Committee shall have sole authority to adopt rules and regulations, which shall be administered by the Committee. In addition, the Committee shall have the discretionary authority to issue rulings and interpretations concerning the Plan and all matters arising thereunder, on a uniform and nondiscriminatory basis, provided the same shall not be contrary to or inconsistent with any provision of the Plan.

19

		
	(d)
	As a condition of distributing any benefit under the Plan, the Committee may prescribe the use of such forms and require the furnishing of such information as the Committee may deem appropriate for administering the Plan.

		
	9.3
	Allocation or Delegation of Duties and Responsibilities. In furtherance of its duties and responsibilities under the Plan, the Committee may:

(a)    Employ agents to carry out non-fiduciary responsibilities;
		
	(h)
	Employ agents to carry out fiduciary responsibilities;

		
	(i)
	Consult with counsel, who may be counsel to the Company; and 

		
	(j)
	Delegate any of its duties and responsibilities hereunder to such officer or officers of the Company as the Committee shall designate; except, however, that the Committee may not delegate to any other person the designation of Eligible Employees under Section 3.1 or the authority to consider and determine appeals of alleged adverse benefit determinations.

The Committee delegates to the Chief Executive Officer of the Company the responsibility and authority to interpret the terms of the Plan, including the benefits payable thereunder. Furthermore, the Committee delegates to the Senior Vice President of Human Resources, Chief Human Resources Officer of the Company the authority to enter into a VSA with a Participant in lieu of providing benefits under the Plan.   
		
	9.4
	Expenses. Unless otherwise agreed to by the Company, no person acting as a fiduciary hereunder (who is an employee of an Employer) shall receive any compensation for services as such. Expenses incurred by fiduciaries in connection with the administration of the Plan shall be paid by the Company.

		
	9.5
	Indemnification of Plan Administrator. The Company shall indemnify, to the fullest extent permitted by law, each person made or threatened to be made a party to any civil or criminal action or proceeding by reason of the fact that such person, or such person’s testator or intestate, was a member of the Committee, or a delegate of the Committee, acting in the capacity of Plan administrator.

		
	9.6
	Reliance Upon Others. The Committee, any person to whom it may delegate such of its duties and powers as provided herein, and the officers and directors of the Company shall be entitled to rely conclusively upon and shall be fully protected in any action taken by them in good faith in reliance upon any tables, valuations, certificates, opinions, reports or other advice furnished to them by any duly appointed actuary, accountant, legal counsel (who may be counsel for the Company) or other specialist.

		
	9.7
	Notification. All notices, reports and statements in connection with the Plan that are given, made, delivered or transmitted to a Participant shall be deemed duly given, made,         delivered, or transmitted when mailed, by such class as the sender may deem appropriate, with postage prepaid and addressed to the Participant at the address last appearing on the records of the Employer with respect to this Plan.  All notices, direct actions or other communications given, made, delivered or transmitted by a Participant to an Employer or 

20

Committee shall not be deemed to have been duly given, made, delivered, transmitted or received unless and until actually received by the Employer or Committee.
		
	9.8
	Multiple Capacities. A person may serve in more than one fiduciary capacity with respect to the Plan.

ARTICLE X
CLAIMS PROCEDURE
		
	10.1
	Submission of Claims. The initial claim by any Participant for benefits under this Plan shall be submitted in writing to the Committee (or its delegate) within 60 days after the occurrence of the termination of employment that the Participant claims to have triggered entitlement to Plan benefits.

		
	10.2
	Computation and Review of Claims. All benefits shall be computed by the Committee or its delegate.  All claims shall be approved or denied by the Committee (or its delegate) as soon as practicable, but in no event later than 90 days after application by the Participant. The Committee may take an additional 90 days to review the claim, provided that the Participant is notified in writing within the initial 90-day period.

		
	(a)
	Initial Denial of Claim - Any denial of a claim shall include:

		
	(i)
	Reason or reasons for the denial;

		
	(ii)
	Reference to pertinent Plan provisions on which the denial is based;

		
	(iii)
	Description of any additional material or information necessary for the Participant to perfect the claim together with an explanation of why the material or information is necessary; and

		
	(iv)
	Explanation of the Plan’s claim review procedure, described below.

		
	(b)
	Review of a Denied Claim - A Participant shall have a reasonable opportunity to appeal a denied claim to the Committee (or its delegate) for a full and fair review.  The Participant or a duly authorized representative shall have 60 days after receipt of written notification of the denial of claim in which to file an appeal with the Committee. The request for review shall be in writing and the Participant or a duly authorized representative shall submit written comments, documents, records and other information relating to the appeal. The Participant or a duly authorized representative may review, free of charge, pertinent Plan documents, records and other information relevant to the appeal.

		
	(c)
	Committee Review - The Committee’s (or its delegate’s) review shall take into account all comments, documents, records and other information submitted by the Participant relating to the claim, without regard to whether such information was submitted or considered in the initial benefit determination.

21

		
	(d)
	Written Decision - The Committee (or its delegate) shall issue a decision on the reviewed claim promptly but no later than 60 days after receipt of the review.  The Committee may take an additional 60 days to review the claim, provided that the Participant is notified in writing within the initial 60-day period. The Committee’s decision shall be in writing and shall include:

		
	(i)
	Reasons for the decision; 

		
	(ii)
	References to the Plan provisions on which the decision is based;

		
	(iii)
	Statement that the Participant is entitled to receive, upon request, reasonable access to, and copies of, all documents, records and other information relevant to the claim; and 

		
	(iv)
	Statement that the Participant is entitled to bring a civil suit under Section 502(a) of ERISA. 

		
	(e)
	Binding Effect - The Committee’s (or its delegate’s) decision shall be final and binding on the Participant and the Employer.

ARTICLE XI
GENERAL PROVISIONS
		
	11.1
	Construction. This Plan shall be construed and enforced in accordance with and governed by the internal substantive laws (and not the laws relating to conflict of laws or choice of laws) of the State of New Jersey, except to the extent that such laws are preempted by Federal law.

		
	11.2
	Unfunded Plan. The obligations of the Company under this Plan are not required to be funded in advance. Nothing contained in this Plan shall give an Eligible Employee or Participant any right, title or interest in any property of the Company or any of its Affiliates.

		
	11.3
	No Right to Continued Employment. Nothing contained herein shall be deemed to give any Eligible Employee or Participant the right to be retained in the employment of an Employer or to limit the rights of any Employer to discharge any Eligible Employee or Participant at any time, with or without notice and with or without Cause.

		
	11.4
	Partial Invalidity. The invalidity or unenforceability of any term or provision, or any clause, or portion thereof, of this Plan shall in no way impair or affect the validity or enforceability of any other provision of this Plan, which shall remain in full force and effect.

		
	11.5
	Successors and Assigns.

		
	 (a)
	This Plan shall inure to the benefit of and be binding upon the Company and its successors and assigns.

		
	(b)
	The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform the Company’s 

22

obligations under the Plan in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.    
		
	(c)
	In no event shall a Participant assign their interests under the Plan to any other person without the prior written consent of the Committee. 

		
	11.6
	Waivers. Failure to strictly comply with any term, condition or requirement set forth in the Plan shall not be deemed a waiver of such term, condition or requirement, nor shall any waiver of any such term, condition or requirement at any one time or times be deemed to result in a waiver of such term, condition or requirement at any other time or times.

		
	11.7
	Gender and Number. The singular shall include the plural, unless indicated otherwise by the context.

		
	11.8
	Headings. The headings of the Plan are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

*          *          *

/s/ Sheila Rostiac                                       10/09/19                    
Signature                                 Date 

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