Document:

Compensation Plan for Non-employee Directors

  
 THE PRUDENTIAL DEFERRED COMPENSATION PLAN 
 FOR NON-EMPLOYEE DIRECTORS 
  
 The
Prudential Deferred Compensation Plan for Non-Employee Directors (the “Plan”) was established by The Prudential Insurance Company of America (“Prudential Insurance”), effective as of July 1, 1974, for the purpose of providing a
method of deferring payment to non-employee directors of the Company (the “Non-Employee Directors”) of their fees, as fixed from time to time by the Board of Directors of the Company until termination of their services on the Board. The
Plan was amended and restated effective as of May 12, 1998. Effective as of January 1, 2002, the Plan was amended to transfer sponsorship from Prudential Insurance to Prudential Financial, Inc. (the “Company”) to reflect the change in
corporate structure resulting from the demutualization of Prudential Insurance, and the establishment of the Company as the publicly-held parent company of Prudential Insurance as of December 17, 2001. Effective as of September 10, 2002, the Plan
has been amended and restated,with such changes generally to be effective as of January 1, 2003 as set forth herein, to provide for the deferral of “Stock Based Fees” and “Cash Based Fees” (as defined below), the provision of
certain additional notional investment options under the Plan related to the deferral of such Fees, and to address the suspension of, and “rollover” of accrued amounts under, the Pension Plan (as defined below). 
  
 The Plan is intended to be, and shall be administered as, an unfunded plan maintained for the purpose of providing deferred compensation
for the Non-Employee Directors and, as such, is not an “employee benefit plan” within the meaning of Title I of ERISA (as defined below). To the degree applicable, the Plan is also intended to comply with the provisions of New Jersey
Statutes Annotated 17B:18-52. 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 The following capitalized terms shall have the
meanings hereinafter set forth in this Plan: 
  
 “Board of Directors” or “Board” means the Board
of Directors of the Company. 
  
 “Cash-Based Fees” shall mean, effective as of January 1, 2003, Fees
payable in U.S. currency to the Company’s Non-Employee Directors, the amount of which may be periodically amended or modified consistent with the requirements of the By-laws and Statement of Corporate Governance Principles and Practices of the
Company. 
  
 “Change of Control” shall be deemed to have occurred if any of the following events shall
occur: 

 
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 (i)    any Person (as defined below) acquires
“beneficial ownership” (within the meaning of Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 25% or more of the combined Voting Power (as defined below) of the Company’s
securities; or 
  
 (ii)    within any 24-month period commencing prior to the consummation of a
plan of reorganization under which Prudential Insurance ceases to be a mutual life insurance company, the persons who, at the beginning of such period, were the members of the Board (the “Incumbent Company Directors”) shall cease to
constitute at least a majority of the Board or the board of directors of any successor to the Company; provided, however, that any director elected to the Board, or nominated for election to the Board, by a majority of the Incumbent Company
Directors then still in office shall be deemed to be an Incumbent Company Director for purposes of this subclause (ii); or 
  
 (iii)    upon the consummation of a merger, consolidation, share exchange, division, sale or other disposition of all or substantially all of the assets of the Company (a “Company Corporate Event”),
immediately following the consummation of which the stockholders of the Company immediately prior to such Company Corporate Event do not hold, directly or indirectly, a majority of the Voting Power of 
  

	 	(x)
	 
	in the case of a merger or consolidation, the surviving or resulting corporation, 
 

  

	 	(y)
	 
	in the case of a share exchange, the acquiring corporation or 
 

  

	 	(z)
	 
	in the case of a division or a sale or other disposition of assets, each surviving, resulting or acquiring corporation which, immediately following the relevant
Company Corporate Event, holds more than 25% of the consolidated assets of the Company immediately prior to such Company Corporate Event, provided that no Change of Control shall be deemed to have occurred with respect to any Participant who is
employed, immediately following such Company Corporate Event, by any entity in which the policyholders or stockholders of the Company, as the case may be, immediately prior to such Company Corporate Event hold, directly or indirectly, a majority of
the Voting Power; or 
 

  
 (iv)    any other event occurs which the Board
declares to be a Change of Control. 
  
 Notwithstanding the foregoing, a Change of Control shall not be deemed to have occurred merely as a
result of (i) the conversion of Prudential Insurance from a mutual life insurance company to a stock company a majority of whose shareholders immediately following such conversion are either (x) persons who were policyholders of Prudential

 
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Insurance immediately prior to such transaction or (y) the Company or another corporation the shares of which are held primarily by the persons described in subclause (x); (ii)
Prudential Insurance becoming a direct or indirect subsidiary of the Company whose shareholders are primarily persons who were policyholders of Prudential Insurance immediately prior to such transaction or (iii) an underwritten offering of
the equity securities of the Company where no Person (including any group (within the meaning of Rule 13d-5(b) under the Exchange Act)) acquires more than 25% of the beneficial ownership interests in such securities. 
  
 “Code” means the Internal Revenue Code of 1986, as amended. 
  
 “Committee” means the Committee that has been appointed by the Board of Directors pursuant to Article V of the Plan. 
  
 “Common Stock” means the common stock, par value $0.01, of the Company. 
  

“Company” means Prudential Financial, Inc 
  
 “Controlled Group” means the Company and (i) each corporation which is a member of a controlled group of corporations (within the meaning of Section 414(b) of the Code) which includes the Company, (ii) each trade
or business (whether or not incorporated) which is under common control with the Company (within the meaning of Section 414(c) of the Code), (iii) each organization included in the same affiliated service group (within the meaning of Section 414(c)
of the Code) as the Company, and (iv) each other entity required to be aggregated with the Company pursuant to regulations promulgated under Section 414(o) of the Code. Any such entity shall be treated as part of the Controlled Group only for the
period while it is a member of the controlled group or considered to be in a common control group. 
  
 “Deferred
Compensation Accounts” shall have the meaning set forth in Section 3.1 of the Plan. 
  
 “Deferred Stock
Units” shall have the meaning set forth in Section 7.1. 
  
 “Early Distribution With Penalty” shall
have the meaning set forth in Section 4.3. 
  
 “Effective Date” means July 1, 1974. 

 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Fees” includes all fee income payable to Non-Employee Directors for their service on the Board of Directors, including, but not limited to (i) annual service
fees, (ii) meeting fees (including orientation meeting fees), and (iii) compensation that may be payable to such Non-Employee Directors for serving on any of the committees of the
 

 
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Board of Directors. The term “Fees” does not include travel payments that may be made to such Non-Employee Directors as a result of attending orientation meetings of the Board of
Directors, payments that constitute reimbursement for expenses incurred by such Non-Employee Director in connection with his or her services to the Board of Directors, nor any fees that may be payable to such Non-Employee Director for service as a
trustee of The Prudential Foundation. Effective January 1, 2003, the term “Fees” shall include both Stock-Based Fees and Cash-Based Fees, unless otherwise noted in this Plan. 
  
 “Fixed Units” shall have the meaning set forth in Section 7.1. 
  
 “Hardship” means an unanticipated emergency that is caused by an event beyond the control of the Participant or beneficiary, and that would result in severe financial hardship to such
Participant or beneficiary. 
  
 “Non-Employee Director” means any Director of the Company who is not a
salaried officer or employee of either the Company or any entity within the Controlled Group. 
  
 “Participant” means a Non-Employee Director of the Company (and, if applicable, their beneficiaries) who have elected to participate in the Plan and thereby defer all or a portion of the Fees to be earned by such
Participant in the next applicable Plan Period. 
  
 “Pension Plan” means The Pension Plan For Non-Employee
Directors Of Prudential Financial, Inc., as suspended by the Company as of December 31, 2002. 
  
 “Pension Plan
Rollover Deferrals” has the meaning set forth in Section 3.3 (a) (ii). 
  
 “Person” means any person
(within the meaning of Section 3(a)(9) of the Exchange Act), including any group (within the meaning of Rule 13d-5(b) under the Exchange Act)), but excluding any of the Company, any Subsidiary or any employee benefit plan sponsored or maintained by
the Company or any Subsidiary. 
  
 “Plan Period” has the following meaning: (a) with respect to the
“First Plan Period,” the period commencing on July 1, 1974, and terminating on December 31, 1974, and (b) with respect to all subsequent Plan Periods, the period of time commencing on January 1 and terminating on December 31 for all
successive calendar years. 
  
 “Pre-2003 Fee Deferrals” has the meaning set forth in Section 3.3(a)(i).

  
 “Retirement Date” means the first day of the month following the month in which the Participant
terminates his or her services as a Non-Employee Director. 
  
 “Secretary” means the Secretary of the Board
of Directors and, for purposes of this Plan and various administrative procedures described herein, the term “Secretary” shall also include any member of the Secretary’s Department of the Company, 

 
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 “Stock-Based Fees” shall mean, effective as of January 1, 2003, Fees
payable in Common Stock to the Company’s Non-Employee Directors, the amount of which may be periodically amended or modified consistent with the requirements of the By-laws and Statement of Corporate Governance Principles and Practices of the
Company. 
  
 “Subsidiary” means any corporation or partnership in which the Company owns, directly or
indirectly, more than 50% of the total combined voting power of all classes of stock of such corporation or of the capital interest or profits interest of such partnership. 
  
 ARTICLE II 
  
 PARTICIPATION REQUIREMENTS

  
 2.1    Eligibility.    A Non-Employee Director will be deemed a
Participant in the Plan either (a) if he or she elects to defer all or a portion of the Fees to be earned during a Plan Period as provided herein, and/or (b) if such Non-Employee Director has accrued a pension under the terms of the Pension Plan the
value of which is to be transferred to this Plan as of such date pursuant to the suspension and subsequent termination of the Pension Plan. 
  
 2.2    Elections 
  
 (a)    General Rules.    The election to defer all or a portion of the Participant’s Fees for the next Plan Period, as well as the election of the form and timing of any
distributions on the Participant’s behalf, shall be made by written notice delivered by the Participant to the Secretary not later than the last day of the open trading window under the Company’s Insider Trading Policy immediately
preceding the first day of such Plan Period. In the case of a Non-Employee Director who first becomes eligible during such Plan Period, such election must be made by written notice not later than thirty (30) days after such Non-Employee Director
first becomes eligible; provided, however, that with respect to such initial elections, no Fees attributable to the period before which the election is made and presented to the Secretary are eligible for deferral under this Plan. Each such election
shall be irrevocable during such Plan Period and thereafter, except as set forth below. 
  
 (b)    Amendment of Election Form:    Each Participant may, no later than the last day of the year prior to the year of his or her anticipated Retirement Date, amend their election forms
for deferrals of Fees related to all Plan Periods (a) to change the previously-elected form of distribution to another distribution form of all distributions under the Plan to another distribution form permitted under Section 4.1, or (b) to change
the starting date for commencement of all payments under the Plan to another definitely determinable date on or after such Retirement Date, provided, however that such election shall be made during an open trading window under the Company’s
Insider Trading Policy. 
  
 2.3    Pension Plan Rollover
Elections.    With respect to any Non-Employee Director not already a Participant, or a current Participant of the Plan who has accrued a 

 
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pension under the terms of the Pension Plan the value of which is to be transferred to this Plan as of such date pursuant to the suspension and subsequent termination of the Pension Plan, such
individuals must, by written notice delivered by the Participant to the Secretary not later than the last day of the open trading window under the Company’s Insider Trading Policy immediately preceding the first day of such Plan Period, elect
the form and timing of any distributions on the Participant’s behalf with respect to such Pension Plan Rollover Deferrals. 
  
 Such election form shall specify, at a minimum, that: 
  
 (a)    For Participants of the Plan and other Non-Employee Directors who become Participants in this Plan by virtue of such Pension Plan Rollover who are in active service with the Board as of December 31, 2002,
the form (lump sum or installment) and timing of any distribution of such Pension Plan Rollover Deferrals as generally provided for under Section 4.1(a) of the Plan; and 
  
 (b)    For Participants of the Plan and other Non-Employee Directors who become Participants in this Plan by virtue of such Pension Plan
Rollover who were in active service with the Board as of December 31, 2001 but had retired from the Board prior to December 31, 2002, such Participants will be permitted to elect only 60 or 120 month installment payments of such amounts, to commence
on or after January 1, 2003. 
  
 No other election shall be permitted with respect to such Pension Plan Rollover Deferrals, except as set
forth in Section 4.4 below. 

 
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 ARTICLE III 
  
 DEFERRED COMPENSATION ACCOUNTS 
  
 3.1    Establishment of Deferred Compensation Accounts.  An account shall be established for each Participant which shall be designated as his or her Deferred Compensation Account. Such Account
may be suballocated as generally provided for under Section 3.3(a) below as a recordkeeping matter and accounting convenience, but the Company shall not be required to segregate any amounts credited to the Deferred Compensation Accounts in any
manner or in any form, except in its sole discretion. 
  
 3.2    Crediting of Fees to Deferred
Compensation Accounts.  Upon the execution of a valid election to defer all or a portion of the Fees attributable to services performed by the Participant in the next Plan Period, such Fees shall be credited to the Participant’s
Deferred Compensation Accounts in the following manner: 
  
 (a)    Annual Service
Fees:  To the degree the Fees deferred by the Participant constitute annual service fees, the amount of the annual service fee to be earned by the Participant for services rendered during the First Plan Period shall be credited in two
equal installments on or about the last business day of September and December in such Plan Period and for services rendered during any other Plan Period shall be credited in four equal installments on or about the last business day of March, June,
September, and December in the Plan Period to which such service fee relates to his or her Deferred Compensation Account, subject to the provisions of Section 3.4. 
  
 (b)    Meeting/Committee Fees:  To the degree the Fees deferred by the Participant constitute meeting fees or committee fees, the
amount of each fee to be earned by a Participant for attendance at a meeting during a Plan Period shall be credited to his or her Deferred Compensation Account on the last business day of the calendar quarter during the Plan Period when such meeting
occurred. 
  
 3.3    Earnings Indices and Investment Options for Stock-Based Fees and
Cash-Based Fees Within the Deferred Compensation Accounts (Fixed Units and Deferred Stock Units); Allocation Limitations 
  
 A Participant’s Deferred Compensation Account will be credited with notional interest, earnings (and, where applicable, notional investment gain or loss) that are intended to mirror the investment performance and results
of the two notional investment options offered under the Plan and selected by the Participant on the Participation Agreement, subject to the limitations set forth below: 
  

	 	(a)
	 
	Sub-Allocation of Deferred Compensation Accounts:  Amounts credited to each Participant’s Deferred Compensation Account shall be
identified in the Plan’s records as comprised of up to four subaccounts, as follows: 
 

 
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	 	(i)
	 
	Amounts credited to an applicable Participant’s Deferred Compensation Account for Plan Periods ending on December 31, 2002 (including any interest accrued
on such balances (the “Pre-2003 Fee Deferrals”); 
 

  

	 	(ii)
	 
	Amounts credited to an applicable Participant’s Deferred Compensation Account as a result of the suspension and subsequent termination of the Pension Plan
as of December 31, 2002 (the “Pension Plan Rollover Deferrals”); 
 

  

	 	(iii)
	 
	Stock-Based Fee Deferrals; and 
 

  

	 	(iv)
	 
	Cash-Based Fee Deferrals. 
 

  

	 	(b)
	 
	Available Notional Investment Options under the Plan:  Effective for Plan Years beginning on or after January 1, 2003, the two available
notional investment options under the Plan – the “Fixed Units” and the “Deferred Stock Units” — are intended to mirror the performance of two of the actual investment options available to participants of the Prudential
Employee Savings Plan, as follows: (a) the Fixed Rate Fund (in the case of the Fixed Units); and (b) the Prudential Financial, Inc. Common Stock Fund (in the case of the Deferred Stock Units). With respect to amounts deemed allocated to the Fixed
Units under the Plan by any Participant, such amounts will be credited with interest in the same general manner as interest would be credited to amounts actually invested in the actual Fixed Rate Fund. With respect to amounts deemed allocated to
Deferred Stock Units by any Participant, such amounts will be credited under the Plan as if the Participant had actually purchased units of the Prudential Financial, Inc. Common Stock Fund on the date of such deferral, (adjusting the number of units
to take into account the subsequent payment of dividends, and any reinvestment of such dividends, that may actually occur under the Prudential Financial, Inc. Common Stock Fund) and the value of such units will be adjusted in the same general manner
as amounts actually invested in the Common Stock Fund. To the extent that the actual investment options noted above are amended or removed from the Prudential Employee Savings Plan, comparable changes shall be made in the available notional
investment options under this Plan, and any such changes shall be communicated to Participants as soon as administratively practicable. 
 

  

	 	(c)
	 
	Allocation Limitations:  Generally, a Participant may elect a combination of the two available notional investment options with respect to the
amount of Fees deferred under the Plan, subject to the limitations set forth below: 
 

  
 (i)    Cash-Based Fees:  With respect to any Cash-Based Fee amounts, such amounts (including any earnings) may be allocated to either the Fixed Units or the Deferred Stock Units under the Plan;
provided, however, that
 

 
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the Participant’s allocation of his or her account must be stated in five percent (5%) increments. 
  
 (ii)    Stock-Based Fees:  With respect to any Stock-Based Fees deferred under the Plan, such amounts (and any notional dividends paid with respect to such amounts)
may only be allocated to the Deferred Stock Units under the Plan. 
  
 (iii)    Pre-2003 Fee
Deferrals:  With respect to any Pre-2003 Fee Deferrals, such amounts may be allocated to either the Fixed Units or the Deferred Stock Units under the Plan; provided, however, that the Participant’s allocation of his or her
account must be stated in five percent (5%) increments. 
  
 (iv)    Pension Plan Rollover
Deferrals:  With respect to any Pension Plan Rollover Deferrals deferred under the Plan, such amounts (and any notional dividends paid with respect to such amounts) may only be allocated to the Deferred Stock Units under the Plan.

  

	 	(d)
	 
	Changing Indices:  Subject to the allocation limitations set forth in Section 3.3(c) above, a Participant may change how the notional amounts
reflected in his or her Account are deemed invested by completing an Account Reallocation Form. Such deemed investment allocations may be changed periodically during an open trading window under the Company’s Insider Trading Policy, and in no
event more than once per calendar quarter. Changes will be effective the first day of the following month. To the extent that additions to, or subtractions from, the number of indices/notional investment options are made under this Plan,
Participants will be asked to complete an Account Reallocation Form to indicate if they wish to reallocate their notional Account balances. In the event no such Form is received, no changes to the Participant’s Account will be made except that,
in the event a particular indices/notional investment option is eliminated and no Form has been completed, the notional amounts credited in such eliminated option shall be credited under the Fixed Units (or, if such option has been eliminated, a
notional investment equivalent to any money market fund option offered under the Prudential Employee Savings Plan) as of the date of such elimination (or as soon as administratively practicable thereafter). The aforementioned allocation limitations
apply at all times during which the Participant is in active service as a Non-Employee Director of the Company, and for a period of two (2) years following his or her Retirement Date (or such other period after the Retirement Date as the Committee,
in its sole discretion, may impose). 
 

  

	 	(e)
	 
	Account Valuation and Reports: 
 

  
 (i)    Periodic Account Valuation.  For purposes of Deferred Compensation Account recordkeeping, periodic updates of the notional 

 
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value of each Participant’s Deferred Compensation Account (and of the aggregate unfunded liabilities of the Plan as a whole) shall be made at the direction of the Committee (in any event, no
less frequently than as of the end of each calendar quarter). With respect to any distribution for a Participant’s Account as provided for in Article IV of the Plan, the aggregate value of any such distribution shall be calculated by reference
to the notional value of the Account as of the last day of the month prior to the month in which such distribution is either anticipated to commence or has been requested to commence by the Participant (or Beneficiary, as applicable). 

 
 (ii)    Participant Statements.  Quarterly statements illustrating Participant Deferred
Compensation Account balances, including any notional gains or losses in such Accounts, shall be made available to Participants as soon as practicable after the end of each calendar year quarter, in a form and manner prescribed by the Committee.

  
 3.4    Special Rules Governing Deferral of Annual Service Fees.  If, prior
to the end of the Plan Period, a Participant (a) becomes an employee of the Company or any member of the Controlled Group, (b) ceases for any reason to be a Non-Employee Director, or (c) has elected to defer all or a portion of his or her annual
services fees and the effective date of participation by a Participant for any Plan Period is other than the first day thereof, such Participant’s Deferred Compensation Account will be credited with that proportion of the annual service fee
that the Participant has elected to defer for the full Plan Period which the number of days of his or her participation in the Plan during such Plan Period bears to the total number of days in such Plan Period. 
  
 ARTICLE IV 
  
 DISTRIBUTIONS FROM THE PLAN 
  
 4.1    Timing and Form of
Distribution.  The Company shall pay to the Participant (or, in the event of the Participant’s death, to the Participant’s designated beneficiary) a sum equal to the amount then standing to his or her credit in his or her
Deferred Compensation Account (plus interest as provided for under Section 3.3 herein), in the following manner: 
  

	 	(a)
	 
	Normal Form of Benefits—Lump Sum or Installment Payments:  Payments shall be made in a lump sum, or in 60 or 120 monthly installments, as
elected by the Participant in his or her deferral election form, to begin on either (i) a date prior to the Participant’s Retirement Date, provided that such date must be no earlier than the January 1 in the year following the Plan Period
during which such Fees would otherwise have been payable to the Participant, (ii) the Participant’s Retirement Date, or (iii) such later date as selected by the Participant (provided, however, that in any event, distributions from the Plan must
commence in the year such Participant attains age 70 1⁄2). In the event
 
 

 
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an installment option is chosen, such installments shall be as nearly equal as practicable and shall continue even if the Participant again serves on the Board of Directors. 

  
 Any such distribution provided for under the terms of this Section 4.3(a) will be made in the following
forms: 
  
 (i)    For Deferred Compensation Account balances attributable to
Pension Plan Rollover and Stock-Based Fees, the form of distribution shall be Common Stock; 
  
 (ii)    For Deferred Compensation Account Balances attributable to Cash-Based Fees or Pre-2003 Fee Deferrals, the form of distribution shall be either cash or Common Stock, at the election of the Participant.

  
 In the event that a 60 or 120-month installment option has been elected by the Participant, such Participant will
have the right during such allocation period to reallocate the amounts yet to be distributed under the Plan among the notional investment options described in and subject to the limits set forth in Article III. Any such reallocation elections shall
be made on a form, and under procedures established by the Committee, in its sole discretion. Notwithstanding the above, if the Participant dies (either before payments commence from the Plan or while such payments are being made), the balance of
the Participant’s Deferred Compensation Account shall immediately become due and payable in one lump sum in cash to the Participant’s beneficiary or, if no beneficiary is designated or then living, to the Participant’s estate.

  

	 	(b)
	 
	Small Account Balances – Lump Sum Cashout.  Notwithstanding the foregoing, in the event the Participant’s Deferred Compensation
Account balance is ten thousand dollars ($10,000) or less at the time a distribution of the Participant’s Deferred Compensation Account balance would commence by reason of the application of this Section, or in the event that a
Participant’s remaining Account balance after commencement of the installment options provided for above is ten thousand dollars ($10,000) or less, the Committee reserves the right to accelerate the payment of such Participant’s Account
balance in a lump sum in cash and/or Common Stock (consistent with the general requirements of Section 4.1(a)(i) and (ii) above), notwithstanding the form of benefit payment elected by the Participant under the terms of Article II (for Pension Plan
Rollover Deferrals) or Article IV (for all other deferrals), as applicable. For purposes of this Section, a Participant’s Account balance shall be valued in accordance with the general provisions of Section 3.3(e). 

  

	 	(b)
	 
	Annuity Option:  A Participant whose Retirement Date occurred on or after January 1, 1989 but before January 1, 1999 had the ability to elect
to receive payments in any form of annuity offered in the normal course of business by the Company; provided, however, that the election of such method of
 
 

 
 11 

	 	
payment could not result in the receipt of payments on an annual basis in greater amounts that under a method of payment, if any, previously elected by the Participant. The annuity option
provided herein did not involve the transfer by the Company to the Participant of an annuity contract, but merely describes an optional form of payment. Effective January 1, 1999, this distribution option will no longer be available to Participants
whose Retirement Date has not occurred as of such date. 
 

  
 4.2    Hardship
Distribution.  Notwithstanding any other provisions of the Plan, the Committee may determine, in the Committee’s sole discretion, to accelerate the payment of amounts accrued in such Participant’s Deferred Compensation
Account in the event of the Participant incurring a Hardship. For purposes of this Section, the Committee may only permit the accelerated payment of an amount not to exceed the amount necessary to satisfy the Hardship liability and, in no event, may
the Committee permit the payment under the Plan of an amount exceeding the Participant’s balance in his or her Deferred Compensation Account as of the date of such withdrawal. 
  
 4.3    Early Distribution With Penalty.  A request for an Early Distribution With Penalty of the Participant’s Deferred
Compensation Account balance (not including, for these purposes, any Pension Plan Rollover Amounts) may be made by submitting a Deferred Compensation Withdrawal Form in any Plan Year during an open trading window under the Company’s Insider
Trading Policy. The Account balance distributed will be reduced by a penalty of ten percent (10%) of the Account. For purposes of any such Early Distribution With Penalty, the Account will be valued as of the last day of the month immediately
preceding the date on which the request is received and will be paid in a lump sum, in cash and stock (as provided for under the general provisions of Section 4.1), within thirty (30) days of receipt by the Committee of such Withdrawal Form.

  
 If an Early Distribution With Penalty payment is made, all further deferrals ofFees shall cease for the
remainder of the Plan Year and for the subsequent Plan Year. 
  
 Any penalty amounts withheld from the Early
Distribution With Penalty are taxable income to the Participant, and may be used by the Committee in its sole discretion. 
  
 4.4    Distribution on a Change of Control.  In the event of a Change of Control, Participants under the Plan will have the ability to make a one-time election to commence payment of their
Deferred Compensation Account balance, in whatever manner (lump sum or installment) previously chosen by such Participant, no earlier than the January 1st of the year following the Plan Period during which such Change of Control occurred. Such election shall, consistent with the general provisions of Section 2.2 of the Plan be made by written
notice delivered by the Participant to the Secretary not later than five (5) days before the end of such Plan Period. 
  
 ARTICLE V 

 
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 ADMINISTRATION OF THE PLAN 
  

5.1    Administration of the Plan.  The Board of Directors shall appoint a Committee to administer the Plan, which shall be
comprised of the following three persons: the Vice President and Secretary of the Company, the Vice President of Total Compensation of the Company’s (or as the case may be, Prudential Insurance’s) Human Resources Department, and a Vice
President and Corporate Counsel – Financial Management, of the Company’s Law Department (with the Vice President and Secretary of the Company serving, where appropriate, as the primary contact for questions related to the Plan’s
operation by Participants). The Committee shall maintain such procedures and records as will enable the Committee to determine the Participants and their beneficiaries who are entitled to receive benefits under the Plan and the amounts thereof.

  
 5.2    General Powers of Administration.  The Committee shall have the
exclusive right, power, and authority to interpret, in its sole discretion, any and all of the provisions of the Plan; and to consider and decide conclusively any questions (whether of fact or otherwise) arising in connection with the administration
of the Plan or any claim for benefits arising under the Plan. Any decision or action of the Committee shall be conclusive and binding on the Company and the Participants. 
  
 ARTICLE VI 
  
 AMENDMENT AND TERMINATION

  
 6.1    Amendment of the Plan:  The Committee shall have the authority to
adopt minor amendments to the Plan without prior approval by the Board of Directors that: 
  
 (i)    are necessary or advisable for purposes of complying with applicable laws and regulations; 
  
 (ii)    relate to administrative practices under the Plan (including, but not limited to, the establishment of any procedures or processes or accounts related to the distribution of Common Stock or other
amounts under the Plan); 
  
 (iii)    relate to the selection or deletion of additional notional
investment options for Participants in their accounts; or 
  
 (iv)    have an insubstantial
financial effect on the Plan. 

 
 13 

  
 The Board of Directors shall have the authority to adopt any other amendments to the Plan not
encompassed under the terms of the preceding sentence. Any such amendments must be made by written instrument, and notice of such amendments shall be provided as soon as practicable to Participants after their adoption. 
  
 6.2    Limitations on Amendment or Termination of the Plan  The Company reserves the right to amend
or terminate the Plan in any respect and at any time, without the consent of Participants or beneficiaries; provided, however, that the following conditions with respect to such amendment or termination must be satisfied in order for such amendment
or termination to be binding and in effect: 
  
 (a)    Such amendment or termination must be made
pursuant to a written resolution of the Committee which is approved thereafter by the Board of Directors; and 
  
 (b)    Such amendment or termination resolution may not adversely affect the rights of any Participant or beneficiary to receive benefits earned and accrued under the Plan prior to such amendment or termination;
provided, however, that 
  
 (i)    any alteration of the notional investment options under the
Plan, 
  
 (ii)    any acceleration of payments of amounts accrued under the Plan by action of the
Committee or the Compensation Committee or by operation of the Plan’s terms; or 
  
 (iii)    any decision by the Committee or the Compensation Committee to limit participation (or other features of the Plan) prospectively under the Plan 
  

shall not be deemed to violate this provision. 
  
 6.3    Continuation or Termination—Change of Control.  In the event of a Change of Control where the Company is not the surviving entity, any successor to the Company may elect to continue or
to terminate the Plan (in either event, assuming any and all liabilities for such Plan); provided, however, that in the event the Plan is terminated by such entity, the Plan shall be terminated in accordance with the requirements of this Article VI.
(including, but not limited to, the requirements of Section 6.2 herein). 
  
 ARTICLE VII 
  
 GENERAL PROVISIONS 
  
 7.1    Participant’s Rights Unsecured and Unfunded.  This Plan is an unfunded plan maintained primarily to provide deferred compensation benefits for Non-Employee Directors, and therefore is
exempt from the provisions of Parts 2,3 and 4 of Title I of ERISA. Accordingly, no assets of the Company shall be segregated or earmarked to 

 
 14 

 
represent the liability for accrued benefits under the Plan. Amounts referenced in Participant Account statements are only recordkeeping devices reflecting such liability for accrued benefits,
and do not reflect any actual amounts credited. The right of a Participant (or his or her Beneficiary) to receive a payment hereunder shall be an unsecured claim against the general assets of the Company or any successor to the Company. All payments
under the Plan shall be made from the general funds of the Company or any successor. The Company is not required to set aside money or any other property to fund its obligations under the Plan, and all amounts that may be set aside by the Company
prior to the distribution of Account balances under the terms of the Plan remain the property of the Company (or, if applicable, any successor). 
  
 Notwithstanding the foregoing, nothing in this Section 7.1 shall preclude the Company, in its sole discretion, from establishing a “rabbi trust” or other vehicle in connection with the
operation of this Plan, provided that no such action shall cause the Plan to fail to be an unfunded plan designed to provide deferred compensation benefits for Non-Employee Directors within the meaning of Title I of ERISA. 
  
 7.2    No Guarantee of Benefits.  Nothing contained in the Plan shall constitute a guaranty by the
Company or any other person or entity that the assets of the Company will be sufficient to pay any benefit hereunder. 
  
 7.3    No Creation of Employee Rights; Plan is Not A Contract of Employment.  Participation in the Plan shall not be construed to give or deem any Participant to be an employee of the
Company. This Plan shall not constitute a contract of employment between the Company and any Participant. 
  
 7.4    Non-Alienation Provision.  No interest of any person or entity in, or right to receive a benefit or distribution under, the Plan shall be subject in any manner to sale, transfer,
anticipation, assignment, pledge, attachment, garnishment, or other alienation or encumbrance of any kind; nor may such interest or right to receive a distribution 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. 
  
 7.5    Applicable Law; Severability.  The Plan shall be construed and administered under the laws of the State of New Jersey, except to the extent that such laws
are preempted by ERISA, if applicable. In the event any provision of this Plan shall be determined to be illegal or invalid for any reason, the remaining portion(s) shall continue in full force and effect as if such illegal or invalid provision had
never been included herein. 
  
 7.6    Taxes.  To the extent required by law,
amounts accrued under the Plan shall be subject to federal and state income, federal social security and federal or state unemployment taxes (if applicable) during the year the services giving rise to such amounts were performed (or, if later, when
the amounts are both determinable and not subject to a substantial risk of forfeiture). The Company shall withhold from any
 

 
 15 

 
payments made pursuant to the Plan such amounts as may be required by federal, state or local law, and the Company further reserves the right: (a) to limit or reduce the amounts intended to be
deferred under the terms of the Plan as may be necessary or appropriate in order to ensure that any required tax withholdings can be deducted; and/or (b) to require the Participant to pay any taxes owed on such amounts. 
  
 7.7    Excess Payments.  If the compensation, years of service, age, or any other relevant fact
relating to any person is found to have been misstated, the Plan benefit payable by the Company to a Participant or beneficiary shall be the Plan benefit which would have been provided on the basis of the correct information. Any excess payments due
to such misstatement, or due to any other mistake of fact or law, shall be refunded to the Company or withheld by it from any further amounts otherwise payable under the Plan. 
  
 7.8    No Impact on Other Benefits.  Amounts accrued under the Plan shall not be included in a Participant’s compensation for
purposes of calculating benefits under any other plan, program or arrangement sponsored by the Company. 
  
 7.9    Data.  Each Participant or beneficiary shall furnish the Committee all proofs of dates of birth and death and proofs of continued existence necessary for the administration of the Plan, and
the Company shall not be liable for the fulfillment of any Plan benefits in any way dependent upon such information unless and until the same shall have been received by the Committee in a form satisfactory to it. 
  
 7.10    Incapacity of Recipient.  If a Participant or other beneficiary entitled to a distribution
under the Plan is living under guardianship or conservatorship, distributions payable under the terms of the Plan to such Participant or beneficiary shall be paid to his or her appointed guardian or conservator and such payment shall be a complete
discharge of any liability of the Company under the Plan. 
  
 7.11    Usage of Terms and
Headings.  Words in the masculine gender shall include the feminine and the singular shall include the plural, and vice versa, unless qualified by the context. Any headings are included for ease of reference only, and are not to be
construed to alter the terms of the Plan.  

 
 16Prudential Long-Term Performance Unit Plan

 Exhibit A 
  
 2002 
 Prudential Long-Term 
 Performance
Unit Plan 
  
 February 2002 
  
 This Plan was approved by the Compensation Committee of Prudential Financial, Inc.’s Board of Directors on February 12, 2002. The Compensation Committee may, in its sole discretion, at any time and from time to time
amend, modify, suspend or terminate this Plan, in whole or in part, without notice to or consent of any Participant or employee. 

  
 Table of Contents 
  

	  	 	 I.
 	  	 Program Concept
 	  	  
	 
	 ·
 	 	 II.
 	  	 Eligibility
 	  	  
	 
	 ·
 	 	 III.
 	  	 Granting of Performance Units
 	  	  
	 
	 ·
 	 	 IV.
 	  	 Performance Measurement
 	  	  
	 
	 ·
 	 	 V.
 	  	 Final Valuation and Payment
 	  	  
	 
	 ·
 	 	 VI.
 	  	 Termination of Employment
 	  	  
	 
	 ·
 	 	 VII.
 	  	 Plan Funding
 	  	  
	 
	 ·
 	 	 VIII.
 	  	 Plan Administration
 	  	  
	 
	 ·
 	 	 IX.
 	  	 Revocation, Amendment, and Termination
 	  	  
	 
	 ·
 	 	 X.
 	  	 Limitation on Liability
 	  	  
	 
	 ·
 	 	 XI.
 	  	 No Contract of Employment
 	  	  
	 
	 ·
 	 	 XII.
 	  	 No Right to Participate
 	  	  
	 
	 ·
 	 	 XIII.
 	  	 No Limitations on Corporate Actions
 	  	  
	 
	 ·
 	 	 XIV.
 	  	 Facilitation of Payments
 	  	  
	 
	 ·
 	 	 XV.
 	  	 Addresses; Missing Recipients
 	  	  
	 
	 ·
 	 	 XVI.
 	  	 Taxes
 	  	  
	 
	 ·
 	 	 XVII.
 	  	 Successors
 	  	  
	 
	 ·
 	 	 XVIII.
 	  	 Captions
 	  	  
	 
	 ·
 	 	 XIX.
 	  	 Third Parties
 	  	  
	 
	 ·
 	 	 XX.
 	  	 Non-Alienation Provision
 	  	  

 

 
 2 

 I.    Program Concept 
  
 The 2002 Prudential Financial Long-Term Performance Unit Plan (“the Plan”) has been developed to recognize and reward the contributions that Participants (as hereafter defined) will make towards the Prudential
Financial, Inc.’s (“Prudential”, “PFI”, or “the Company”) long-term growth and success. 
  
 The Long-Term
Performance Unit Plan is one of the four elements of Total Compensation applicable to designated Executives in Prudential. The other elements are: Base Salary, Annual Incentive Award, and Benefits/Perquisites. The Long-Term Incentive Award is
designed to focus attention on the importance of sustained company performance over a period of years as well as to assist in the retention of eligible employees. 
  
 The Plan is a “bonus program,” as described in U.S. Department of Labor Regulations Section 2510.3-2(c). As such, the Plan is not an “employee pension benefit plan,” and is thereby
exempt from the substantive requirements of Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). 
  
 II.    Eligibility 
  
 Employees at the Vice President Grade 6P or equivalent level and
above are eligible to participate in this Plan (“Participants”). In addition, the Compensation Committee of the Company retains the discretion to add certain individuals below the rank of Vice President Grade 6P as Participants under the
Plan, provided the Committee determines (i) that such individuals are included in a select group of management or highly compensated employees of the Company and (ii) that making such individuals Participants under the Plan is in the best interests
of the Company. 
  
 III.    Granting of Performance Units 
  
 Participants will be eligible for an annual grant of Performance Units. The decision to grant Performance Units and the number of Performance Units granted to
Plan Participants will be at the discretion of the Compensation Committee. However, significant emphasis will be given to the individual’s performance, market considerations, internal guidelines and the number of Performance Units available for
grant in arriving at the number to be granted, if any. 
  
 The 2002 Performance Unit grants will be valued based upon Company performance
from January 1, 2002 through December 31, 2004 (the “performance period”). The 2002 Performance Unit Plan’s aggregate award pool will be set at half of 2001’s award pool in order to transition the executive population to stock
option award eligibility later in 2002 The aggregate award pool will be translated into a number of performance units having an initial grant value of $555 per unit. 

 
 3 

  
 Performance Units may be awarded to new hires and promotions during the year as well as other special
circumstances. The number of Performance Units granted to new hires and those receiving promotions during 2002 shall be at the discretion of the Compensation Committee.  
  
 IV.    Performance Measurement 
  
 The value of the
Performance Units is anticipated to increase to $780 per unit over the three-year performance period based on an annual compounded risk-adjusted rate of return of 12%. To calculate award payments, the unit values will then be adjusted by 0.0 to 2.0
based on a relative performance measure. 
  
 The performance measure will be PFI’s three-year Total Shareholder Return (TSR) relative
to a group of peer companies over the performance period. The peer companies will be the companies listed in the following two sub-industries of the S&P 500 Financials Sector (only peer companies remaining in the group at year-end 2004 will
count): 
  

	 	—
	 
	Life & Health Insurance (40301020) 
 

  

	 	—
	 
	Diversified Financial Services (40201020) 
 

  
 PFI’s three-year TSR performance will be evaluated as follows: 
  

	 	—
	 
	Performance achievement equal to the 15th percentile or below of the peer group will result in an earnout factor of zero 
 

 

	 	—
	 
	Performance achievement equal to the 25th percentile of the peer group will result in an earnout factor of 0.5 
 

  

	 	—
	 
	Performance achievement equal to the median of the peer group will result in an earnout factor of 1.0, or “target” 
 

 

	 	—
	 
	Performance achievement equal to the 75th percentile of the peer group will result in an earnout factor of 1.5 
 

  

	 	—
	 
	Performance achievement equal to the 85th percentile of the peer group will result in a maximum earnout factor of 2.0 
 

 

	 	—
	 
	Earnout factors will be in a linear relationship with performance achievement between these points as shown in the graph below 
 

 
 4 

  
  
 

 
  

	 	—
	 
	The TSR measurement will use average closing prices for the final 20 trading days of 2002, 2003 and 2004 and, as a base period, the average closing prices from
December 13, 2001, the PFI IPO date, through December 31, 2001. For PFI, the average closing price for the base period was $31.03 
 

  
 The actual award values will be determined at the end of the three-year performance period as follows: 
  

	 	—
	 
	Step 1:   Calculate the “Target Award Value” by multiplying the number of performance units granted by $780; 

  
     Target Award Value = Number of Performance Units x $780 
  

	 	—
	 
	Step 2:   Calculate the “Weighted Average TSR” by calculating PFI’s TSR for three periods (December 
 

2001 through December 2002; December 2001 through December 2003; and December 2001 through December 2004, multiply each TSR produced by 1/3, and add all three
components together; 
  
     “Weighted Average TSR = 1/3(TSR 2001-2002) + 1/3(TSR 2001-2003) + 1/3(TSR 2001-2004) 

 
 5 

  

	 	—
	 
	Step 3:  Multiply the Target Award Values by the Weighted Average TSR performance factor to  determine the
            “Performance Adjusted Target Award Values” 
 

  
     “Performance Adjusted Target Award Values” = Target Award Value x Weighted Average TSR 
  

	 	—
	 
	Step 4: Multiply the Performance Adjusted Target Award Values by the number of Performance Units granted to
            determine the actual PUP payment per Participant. 
 

  
     Performance Adjusted Target Award Values x Number of Performance Units = PUP Payment. 
  
 To ensure that other critical performance factors are also given consideration and reflected in the final Plan allocation, the Compensation Committee may, under normal circumstances, adjust the total amount allocated to the
Plan by up to plus or minus 15%. Among the factors that will be taken into consideration will be net income and other financial results over the performance period, the level of under or over performance relative to the peer group, changes in market
share, customer and employee satisfaction, extraordinary or unusual items, legal liabilities and strategic development factors. In the event of circumstances that the Compensation Committee deems extraordinary, the Compensation Committee reserves
the right to make any additional adjustment to the total amount allocated. 
  
 V.    Final Valuation and
Payment 
  
 At the close of the performance period, the award values will be calculated and presented to the Compensation Committee
for review and possible adjustment. When the final award value per unit is determined, Corporate Compensation will compute the individual payment for each Participant based on the number of Performance Units granted to the Participant. 

 
 The final 2002 awards are anticipated to be paid half in PFI shares and half in cash (subject to the ultimate discretion of the Compensation
Committee). Stock price for determining the number of shares payable should be the price in February 2005 when the Compensation Committee declares the units earned and approves their final value. 
  

Any 2002 Performance Unit not granted or any Performance Unit canceled under the circumstances described below, and not re-granted to other Participants, shall not be paid to any Participant
and shall revert to the Company. 
  
 Payments made under this Plan will not be taken into account in determining benefits or contribution
amounts under any employee benefit plan of the Company or any of its
 

 
 6 

 
affiliates unless such plan shall specifically provide for the inclusion of such amounts in the computation of benefits or contribution amounts. 
  
 VI.    Termination of Employment 
  
 If employment is terminated prior to the payment of the Performance Units, treatment of the Performance Units will be as follows. 
  

	A.
	 
	Discharge, Voluntary Termination, or Competing Business—If, prior to the payment of the Performance Units, the Participant is separated from
employment for cause, as determined by the Compensation Committee, or the Participant engages in any business that is directly or indirectly competitive with or detrimental to the interests of Prudential as determined by the Compensation Committee,
or if, before the end of the performance period, the Participant resigns or otherwise terminates employment under circumstances not described in Section VI B-E below, the Participant’s Performance Units shall be canceled and the Participant
shall receive no payment under this Plan. Canceled Performance Units may be granted to other Participants. 
 

  

	B.
	 
	Retirement—Subject to compliance with the conditions outlined below, if during the performance period, a Participant separates from
employment by reason of retirement upon or after qualifying to retire (whether at early or normal retirement) under the terms and conditions of any pension plan sponsored by the Company or an affiliate in which the Participant participates, the
number of Performance Units granted will be reduced by multiplying the grant by a fraction, the numerator of which is the number of full months in the performance period during which the Participant was an active employee and the denominator of
which is the number of months in the performance period (36). A partial month worked shall be counted as a full month if the Participant is an active employee for 15 days or more in that month. The resulting reduced number of Performance Units shall
be considered vested and payment made to the Participant following the final valuation of the Plan as described in Section V, provided that the Company reserves the right to cancel such Performance Units if the Participant, prior to the end of the
applicable performance period, (i) performs any services, whether as an employee, officer, director, agent, independent contractor, partner or otherwise, for a competitor of the Company or any of its affiliates without the consent of the
Administrator, as defined below, or (ii) takes any other action, including, but not limited to, interfering with the relationship between the Company or any of its affiliates and any of its employees, clients or agents, which is intended to
damage or does damage to the business or reputation of the Company. 
 

  

	    
	 
	The portion of any Performance Units reduced pursuant to the first sentence of this section (and therefore not payable to a Participant under any circumstances)
shall be canceled and shall not be payable. In addition, if a Participant fails to comply with the conditions of payment, the pro-rated Performance Units shall also be canceled and shall not be payable. 
 

 
 7 

  

	C.
	 
	Death—If a Participant dies during the performance period, the Participant’s estate or beneficiaries will receive a lump sum payment
calculated by (a) first reducing the number of Performance Units by multiplying the such number by a fraction, the numerator of which is the number of full or partial months in the performance period during which the Participant was an active
employee and the denominator of which is the number of months in the performance period (36), (b) multiplying such Performance Units by the greater of (i) the most recent estimation of the accrued value of such units as of the participant’s
death or (ii) the unit value for achievement of plan results and (c) making a lump sum payment of such amounts to the participant’s estate as soon as practicable thereafter. 
 

  

	D.
	 
	Disability—If, prior to the payment of the Performance Units, a Participant’s employment is terminated as a result of the
Participant’s inability to perform the basic requirement of his or her position due to physical or mental incapacity and after the Participant’s short-term disability benefits have expired under the terms of The Prudential Welfare Benefits
plan, the number of Performance Units granted to the Participant will be reduced by multiplying the grant by a fraction, the numerator of which is the number of full months in the performance period during which the Participant was an active
employee and the denominator of which is the number of months in the performance period (36). The period of time that the employee was on Short Term Disability shall be counted as active employment. A partial month worked shall be counted as a full
month if the Participant is an active employee for 15 days or more in that month. The resulting reduced number of Performance Units shall be considered vested and payment made to the Participant following the final valuation of the Plan as described
in Section V. If the Performance Units are reduced pursuant to this paragraph, the portion of the Performance Units eliminated shall be canceled and shall not be payable. 
 

  

	E.
	 
	Termination of Employment of Certain Participants After a Change of Control—If, prior to the payment of the Performance Units, a
Participant’s employment is terminated after a “Change of Control” as defined under the Prudential Executive Change of Control Severance Program, the Compensation Committee shall award a partial payment to such Participant that is not
paid from Plan allocations. This payment will be based on the number of full months in the performance period that the Participant was an active employee and the most recent estimation of the accrued value as of the Participant’s termination of
employment. 
 

  

	F.
	 
	Involuntary Termination of Employment Other Than After a Change of Control—If a Participant’s employment is terminated prior to
the payment of the Performance Units by reason of involuntary termination of employment for reasons other than those described in Section VI A-E above, the Performance Units granted will be canceled and the Participant shall receive no payment from
the Plan. The Compensation Committee may, in its discretion, award a partial payment to such Participant which is
 
 

 
 8 

	 	
not paid from Plan allocations. This payment will be based on the number of full months in the performance period that the Participant was an active employee and the most recent estimation of the
accrued value as of the Participant’s termination of employment. In no event is a Participant who terminates from employment for reasons described in this paragraph to receive a payment greater than that computed with a “target”
performance factor of 1.0, even if the actual TSR performance factor exceeds the “target” 1.0 factor. 
 

  
 VII.    Plan Funding 
  
 The Plan shall at all times be unfunded and no provision shall at
any time be made with respect to segregating any assets of the Company or an affiliate for payment of any benefits under the Plan. The right of a Participant to receive payment under the Plan shall be an unsecured claim against the general assets of
the Company or an affiliate, and neither the Participant nor any other person shall have any rights in or against any specific assets of the Company or an affiliate. The Company and any affiliate may establish a reserve of assets to provide funds
for payments under the Plan. 
  
 VIII.    Plan Administration 
  
 The Compensation Committee shall be the administrator of the Plan. With respect to its authority to award or cancel payments under the Plan to Participants whose
employment is terminated, its authority to grant Performance Units to eligible new or promoted employees below the Senior Vice President level, and with regard to the participation in the Plan of persons who are below the level of Senior Vice
President, the Plan shall be administered by the Prudential Executive Vice President, Human Resources or, to the extent that the Prudential Executive Vice President, Human Resources deems appropriate, to the Vice President, Total Compensation. The
Compensation Committee, the Prudential Executive Vice President, Human Resources or the Vice President, Total Compensation, as applicable, shall be referred to as the Administrator. The Administrator shall administer the Plan in accordance with its
terms and shall have the discretion and authority necessary in the administration of the Plan, including the authority to interpret the Plan, to make factual determinations under the Plan and to determine Plan payments and allocations. The
Administrator shall have the discretion and authority to adopt and revise rules and procedures relating to the Plan, to correct any defect or omission or reconcile any inconsistency in this Plan or any payment hereunder, and to make any other
determinations that it believes necessary or advisable in the administration of the Plan. Determinations and decisions by the Administrator shall be final and binding on all employees, Participants and all other persons.  

 
 IX.    Revocation, Amendment, and Termination 
  
 Other than as set forth below, the Compensation Committee may, in its sole discretion, at any time and from time to time amend, modify, suspend, or terminate this Plan, in whole or in part, without
notice to or the consent of any Participant or employee. This Plan may
 

 
 9 

 
be amended or terminated by resolution of the Compensation Committee and by execution of a written instrument by a duly authorized officer of the Company. 
  
 Notwithstanding the foregoing, if the Plan is terminated, modified or replaced by the Compensation Committee, the Company or any successor in a manner that
materially adversely affects Participants of this Plan as a group in connection with a “Change of Control” as defined under the Prudential Executive Change of Control Program, payments of the full 2002 Performance Unit Award will be made
to Participants under the Program as of such date, using the most recent estimation of the accrued value as of the date of Plan termination, modification or replacement. If the Plan is continued by the Company or any successor after a Change of
Control or is replaced by the Company or any successor to the Company in a manner that does not materially adversely affect Participants of this Plan as a group, no immediate payment of the benefits described in the preceding sentence will be made
unless and until such Participant’s employment is terminated by the Company or any affiliate in accordance with the provisions of the Plan or, if more favorable, any successor or replacement plan.  
  
 X.    Limitation On Liability 
  
 The liability of the Company or any affiliate under this Plan is limited to the obligations expressly set forth in the Plan, and no term or provision of this Plan may be construed to impose any further or additional duties,
obligations, or costs on the Company, an affiliate, or the Compensation Committee not expressly set forth in the Plan. 
  
 XI.    No Contract of Employment 
  
 The existence of this Plan, as in effect at any time
or from time to time, or any grant of Performance Units under the Plan shall not be deemed to constitute a contract of employment between Prudential, or an affiliate, and any employee or Participant, nor shall it constitute a right to remain in the
employ of Prudential or an affiliate. Employment with Prudential or an affiliate is employment-at-will and either party may terminate the Participant’s employment at any time, for any reason, with or without cause or notice. 

 
 XII.    No Right to Participate 
  
 Except as provided in Sections II and III, no Participant or other employee shall at any time have a right to be selected for participation in the Plan, despite having previously participated in an
incentive or bonus plan of the Company or an affiliate. 
  

	

	XIII.    No
	 
	Limitations on Corporate Actions 
 

  
 Except as may otherwise be provided for in Sections VI E. or IX of the Plan (related to payments in the event of a Change of Control), nothing contained in this Plan shall be construed to prevent the Company, or any
affiliate, from taking any corporate action
 

 
 10 

 
which is deemed by it to be appropriate, or in its best interest, whether or not such action would have an adverse effect on this Plan, or any awards made under this Plan. No employee,
beneficiary, or other person, shall have any claim against the Company, or any of its affiliates, as a result of any such action. 
  
 XIV.    Facilitation of Payments 
  
 Notwithstanding anything else in this Plan to the
contrary, in the event that a payment is due to an employee, or former employee (or a beneficiary thereof), under this Plan and the recipient is a minor, mentally incompetent, or otherwise incapacitated, such payment shall be made to the
recipient’s legal representative, or guardian. If there is no such legal representative, or guardian, Prudential, in its sole discretion, may direct that payment be made to any person Prudential, in its sole discretion, believes, by reason of a
family relationship, or otherwise, will apply. Upon such payment, for the benefit of the recipient, the Company and each of its affiliates shall be fully discharged of all obligations therefor. 
  

XV.    Addresses; Missing Recipients 
  
 A
recipient of any payment under this Plan who is not a current employee of the Company, or an affiliate, shall have the obligation to inform the Company of his or her current address, or other location to which payments are to be sent. Neither the
Company nor any affiliate shall have any liability to such recipient, or any other person, for any failure of such recipient, or person, to receive any payment if it sends such payment to the address provided by such recipient by first class mail,
postage paid, or other comparable delivery method. Notwithstanding anything else in this Plan to the contrary, if a recipient of any payment cannot be located within 120 days following the date on which such payment is due after reasonable efforts
by the Company or an affiliate, such payments and all future payments owing to such recipient shall be forfeited without notice to such recipient. If, within two years (or such longer period as Prudential, in its sole discretion, may determine),
after the date as of which payment was forfeited (or, if later, is first due), the recipient, by written notice to the Company, requests that such payment and all future payments owing to such recipient be reinstated and provides satisfactory proof
of their identity, such payments shall be promptly reinstated. To the extent the due date of any reinstated payment occurred prior to such reinstatement, such payment shall be made to the recipient (without any interest from its original due date)
within 90 days after such reinstatement. 
  
 XVI.    Taxes 
  
 The Company or an affiliate shall have the right to deduct from all payments under the Plan any federal, state, or local taxes required by law to be withheld
with respect to such payments. 
  
 XVII.    Successors 

 
 11 

  
 All obligations of the Company and any affiliate under the Plan shall be binding upon and inure to the
benefit of any successor to the Company or such affiliate, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, demutualization or otherwise. 
  
 XVIII.    Captions 
  
 The headings and captions appearing herein are inserted only as a matter of convenience. They do not define, limit, construe, or describe the scope or intent of the provisions of the Plan. 
  
 XIX.    Third Parties 
  
 Nothing expressed or implied in this Plan is intended or may be construed to give any person other than eligible Participants any rights or remedies under this Plan. 
  
 XX.    Non-Alienation Provision 
  
 Subject to the
provisions of applicable law, no interest of any person or entity in any long term incentive award, or right to receive any long term incentive award or any distribution or other benefit under the Plan shall be subject in any manner to sale,
transfer, assignment, pledge, attachment, garnishment, or other alienation or encumbrance of any kind; nor may such interest in any long term incentive award, or right to receive any long term incentive award or any distribution or any benefit under
the Plan be taken, either voluntarily or involuntarily, for the satisfaction of the debts of, or other obligations or claims against, such person or entity, including (but not limited to) claims for alimony, support, separate maintenance and claims
in bankruptcy proceedings. 

 
 12

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