Document:

dex102.htm

    
      

      

    

    Exhibit
10.2

      BURLINGTON
NORTHERN SANTA FE CORPORATION

      SUPPLEMENTAL
INVESTMENT AND RETIREMENT PLAN

      Amended and Restated April 24, 2008, effective as of
January 1, 2005

      
 

      ARTICLE I
- GENERAL

      

                 Section
1.1  Establishment of Plan and
Purpose.  Burlington Northern Santa Fe Corporation, a Delaware
Corporation (hereinafter the "Company"), has established the Burlington Northern
Santa Fe Supplemental Investment and Retirement Plan (hereinafter the "Plan"),
effective January 1, 1997. The Plan is subject to
the following:

      

      (a)  The
Plan is intended to replace the Burlington Northern Inc. Restoration Plan
and the Santa Fe Pacific Corporation Supplemental Retirement and Savings Plan,
and both plans were merged into this Plan,
provided, however, that any compensation deferred under the terms of a
predecessor plan shall be distributed pursuant to the terms of the deferral
election made under such plan.

      

      (b)  The purpose of the Plan is to provide certain highly compensated
employees of the Company and certain of its Affiliated Companies that adopt the Plan the opportunity to defer the
receipt of compensation and to receive additional retirement
income.

      

      (c)  This Plan is not intended to qualify under section 401(a) of the Internal Revenue Code of
1986, as amended (hereinafter the "Code"), or be subject to Parts 2, 3, or 4 of
Title I of the Employee Retirement Income Security Act of 1974, as amended
(hereinafter "ERISA").

      

      (d)  The Plan as set forth herein shall apply
to distributions under the Plan commencing on or after January 1, 2005 (the
“Effective Date” of the Plan as set forth herein), excluding payments made
before or made after the Effective Date that are part of a series of installment
or annuity payments that commenced prior to the Effective Date; provided that
payments that commenced prior to the Effective Date will be subject
to the applicable provisions of the Plan as in effect prior to the Effective
Date.

      

      (e)  It
is the intention that all amounts deferred under the Plan will be subject to the
provisions of section 409A of the Code and applicable guidance issued thereunder
(“Section 409A”), regardless of whether such amounts were deferred (within the
meaning of Section 409A) on, prior to, or after January 1, 2005; provided,
however, that amounts deferred as of December 31, 2004 with respect to
Participants for whom no amounts are deferred after December 31, 2004 are not
intended to be subject to the provisions of Section 409A and such amounts shall
continue to be subject to the terms and conditions of the Plan as in effect
prior to January 1, 2005.

      

                 Section
1.2  Affiliated
Companies.  The term "Affiliated Company" shall mean all persons with whom the Company is considered to be a single employer under section 414
(b) of the Code and all persons with whom the Company would be considered a
single employer under section 414 (c) of the Code.  The Company
and each Affiliated Company which, with the consent of the Chief Executive
Officer or Board of Directors of the Company, adopts the Plan are referred to
herein collectively as the "Employing Companies" and individually as an
"Employing Company".

      

                 Section
1.3  Plan
Administration.  The authority to control and manage the
operation and administration of the Plan shall be vested in the Vice President –
Human Resources and Medical of the Company (hereinafter the
"Administrator").  Any interpretation of the Plan by the Administrator
or the Administrator’s delegate and any decision made by the Administrator or
the Administrator’s delegate on any other matter within the Administrator’s
discretion are final and binding on all persons.  The Administrator
shall have discretionary authority to administer, construe and interpret the
Plan, to decide all questions including but not limited to eligibility, payment
of any benefits hereunder, and to make all
other determinations deemed necessary or advisable for the administration of the
Plan, provided, however, that any person claiming entitlement to benefits in an
amount other than that received shall have the right after review and denial, in
whole or in part, of such claim by the Administrator to a review of such denial
by the Burlington Northern Santa Fe Employee Benefits Committee (hereinafter the
“Committee”).  Such review shall be initiated by the written request
therefore by such person filed with the Committee within 60 days after receipt
by the person of the denial by the Administrator.

      

                 The
Committee shall act with or without a meeting by the vote or concurrence of a
majority of its members; but no member of the Committee who is a Participant
shall take part in any Committee action or any matter that has particular
reference to his own interest hereunder.  The Administrator and the
Committee shall discharge their responsibilities hereunder in a uniform and
non-discriminatory manner as to all Participants.

      

                 The
Administrator and the Committee may from time to time delegate duties to members
of the Human Resources Department or other employees of the
Company.

      

                 Section
1.4  Non-Alienation.  Benefits
payable to any individual under the Plan may not be voluntarily or involuntarily
assigned, alienated, pledged or subject to attachment, anticipation,
garnishment, levy, execution or other legal or equitable process.

      

                 Section
1.5  Source
of Benefits.  The amount
of any benefit payable under the Supplemental Plan will be paid in
cash from the general assets of the
Employers or from one or more trusts, the assets of which are subject to
the claims of the Employers' general creditors in
the event of bankruptcy or insolvency.  Such amounts payable shall be
reflected on the accounting records of the Employers but shall not be construed
to create, or require the creation of, a trust, custodial or escrow
account.  Nothing contained in this Supplemental Plan and no action
taken pursuant to its provisions, shall create a trust or fiduciary relationship
of any kind between an Employer and an employee or any other
person.  Neither an employee nor beneficiary of an employee shall
acquire any interest greater than that of an unsecured creditor, subject to
any preferences provided by federal bankruptcy laws.

      

                 Section
1.6  Plan
Not Contract of Employment.  The Plan does not constitute a
contract of employment, and nothing in the Plan will give any participant the
right to be retained in the employ of any Employing Company, nor any right or
claim to any benefit under the Plan, except to the extent specifically provided
under the terms of the Plan.      

      

                 Section
1.7  Notices.  Subject to subsection 4.1, any notice or document
required to be given to or filed with an Employing Company, the Company, the
Administrator or the Committee shall be considered to be given or
filed:

      

      (a)             on
the date delivered to the Administrator;  or

      

      (b)             three
days after the date sent by certified mail to the Administrator.

      

                 Section
1.8  Applicable
Law.  The Plan shall be construed and administered in
accordance with the internal laws of the State of Texas.

      

                 Section
1.9  Gender
and Number.  Where the context admits, words in any gender
shall include any other gender, words in the singular shall include the plural
and the plural shall include the singular.

      

                 Section
1.10  Plan
Year. The Plan Year shall be the calendar year.

      

      ARTICLE
II - PARTICIPATION

      

                 Section
2.1  Participation.  As of the Effective Date, the Employing Companies
which are authorized to participate in the Plan
are BNSF Railway Company, BNSF Logistics, LLC, Los Angeles Junction Railway
Company, Meteor Communications Corporation  and Western Fruit Express
Company, provided, however, that the Chief Executive Officer of the Company
shall have the authority to modify the authorization of an Employing Company to
participate in the Plan, including the authority to authorize the participation
in the Plan of additional Employing companies.  The class of
highly-compensated employees of each Employing Company who shall be eligible for
the benefits provided in Article IV below (hereinafter the "Eligible Employees") shall be limited to employees who
are members of a select group of management or highly compensated employees
within the meaning of Section 401(a)(1) of ERISA and shall consist of those
employees in Salary Bands 34 or higher and such employees who are designated to
be treated as Employees in Salary Bands 34 or higher for purposes of
compensation.  The Chief Executive Officer of the Company shall have
the authority to modify the description of the class of employees who shall be
eligible to participate in the Plan, including the authority to designate
additional employees who shall be eligible to participate in the Plan, provided
that participation in the Plan shall at all times be limited to employees
who are members of a select group of management or highly compensated employees
within the meaning of Section 401(a)(1) of ERISA.  Employees shall be
eligible to commence participation in the Plan 30 days after they become members
of the class of highly-compensated employees described in the preceding
sentence.  If the Company determines that participation by one or more
Participants shall cause the Plan as applied to any Employing Company to be
subject to Parts 2, 3, or 4 of Title I of ERISA, the entire interest of such
Participant or Participants under the Plan shall be immediately segregated from
the Plan, and such Participant or Participants shall cease to have any interest
under this Plan, but such amounts shall continue
to be subject to the terms identical to the terms of the Plan (including,
without limitation, the provisions of Article VI).

      

      ARTICLE
III - VESTING

      

                 Section
3.1  Vesting.  A
Participant shall be fully vested in his deferral amounts and earnings at all
times and subject to investment gains and losses.  A Participant shall
be vested in Employer Matching Contributions in accordance with the vesting
schedule set forth in Article 6 of the Burlington Northern Santa Fe Investment
and Retirement Plan (the "Investment Plan").

      

      ARTICLE
IV - DEFERRALS

      

                 Section 4.1  Deferral Elections.  An
Eligible Employee for any Plan Year may elect to defer Eligible Compensation,
and thereby become a Participant in the Plan, subject to the following:

      

                 (a)  The Eligible Employee may elect to defer Eligible
Compensation with respect to services performed in the calendar year by filing a
written Deferral Election Form with the Administrator not later than the last
day of the preceding calendar year; provided that (i) such election must be
irrevocable not later than the last day of such preceding calendar year; (ii)
the Committee may establish an earlier deadline for such elections; and (iii)
the Deferral Election form, and the filing thereof, shall be subject to such
other rules (not inconsistent with the foregoing) as may be established by the
Committee.  A Deferral Election Form shall be deemed filed at the time
it is received by the Administrator, provided that the election is personally
delivered, or is sent by mail, by prepaid overnight courier, or by
facsimile.

      

                 (b)  Unless the Compensation and
Development Committee of the Board otherwise specifies, a Participant may elect
to defer (i) up to 25% of base salary that is not eligible Compensation under
the Investment Plan, and (ii) up to 25% of
any cash incentive payments that are not eligible Compensation under the
Investment Plan.  In addition to the
deferral permitted pursuant to the preceding sentence, a Participant may elect
to defer the amount that the Participant is prevented from contributing to the
Investment Plan by reason of the limitation on before-tax contributions
under

       section 402(g)(1) of the Code (determined without regard
to whether the Participant in fact contributed to the Investment Plan the
maximum amount permitted by Code section 402(g)).  A Deferral Election
form must specify the percentage, if any, which the Participant chooses to defer
and authorize his Employing Company to make payroll deductions; provided,
however, that the percentage rate of deferral applicable to the Participant’s
Salary and applicable to the Participant’s Bonus, respectively, for any year
must be at the same rate as the percentage rate applicable to the Participant’s
deferral election under the Investment Plan applicable to the Participant’s
Salary and Bonus for that year (determined as of the first day of that year),
except that with respect to either or both of the Participant’s Salary and Bonus
for the year, the Participant may elect that no deferral occur under this
Plan.

      

                 (c)  For the first calendar year in which an
individual becomes eligible to participate in any of the Plan and the Related
Plans, the individual may file an initial Deferral Election Form to participate
in this Plan, provided that such election must be made by filing a Deferral
Election Form to defer Eligible Compensation within 30 days after the date the
individual initially becomes eligible to participate in any of the Related
Plans, and may only apply with respect to Eligible Compensation paid with
respect to services to be performed after the election is
filed.  Where a Deferral Election is made under this paragraph (c) with
respect to a bonus, the election may apply to no more than an amount equal to
the total amount of the bonus for the performance period multiplied by the ratio
of the number of days remaining in the performance period after the election
over the total number of days in the performance period.  The term
"Related Plan" shall mean any other account balance plan providing for the
deferral of compensation at the election of the Participant that is required to
be aggregated with this Plan pursuant to Treasury Regulation Section
1.409A-1(c)(2)(A).

      

                 (d)  An employee’s “Eligible Compensation” for
any calendar year shall be the sum of: 

      

      (i)           The employee’s “Salary” for the year, which is the
regular rate of pay specified for his position for the year, including only the
total of base salary, sales commissions and similar sales-based cash
compensation, and any other amounts specified by the Committee as Salary prior
to the beginning of such year.  For purposes of the preceding
sentence, base salary scheduled to be paid after the last day of that calendar
year solely for services performed during the final payroll period (as defined
in Code section 3401(b)) containing the last day of the calendar year is treated
as base salary for services performed in the subsequent calendar year in which
the payment is made.

      

      (ii)           The employee’s “Bonus” for the year, which is the total
of his cash bonuses paid under the Incentive Compensation Plan prior to
termination of employment, annual cash performance bonuses paid prior to
termination of employment to employees who are assigned to positions which are
not eligible for the Incentive Compensation Plan, bonuses which are exchanged
for an Exchange Grant under the BNSF Incentive Bonus Stock Program or any
similar program maintained by an Affiliated Company and which are payable prior
to termination of employment, bonuses which are deferred under the BNSF Senior
Management Stock Deferral Plan and which are payable prior to termination of
employment, and contributions made under a salary reduction agreement to a
qualified cash or deferred arrangement or a cafeteria plan which meets the
requirements of Section 125 of the Code and any other amounts specified by the
Committee as Bonus prior to the beginning of such year.

      

      “Compensation” shall not include severance benefits,
payments for earned but unused vacation, automobile allowances, imputed income
under any group term life insurance program, business or moving expense or other
reimbursements, fringe benefits or similar items, lump sum payments in lieu of
merit increases, payments while on a leave of absence other than for short-term
illness, relocation benefits and geographic differentials, the grant of stock
and any cash payments relating thereto, the grant or exercise of an option to
acquire stock, cash awards in lieu of stock options, and payments made under any
company Long-Term Disability Plan paid to a Participant by a Participating
Company.

      

                 Section
4.2  Employer Matching
Contribution.  Subject to such limitations as the Administrator
may from time to time impose, for each Plan Year, a Participant shall be credited with an "Employer
Matching Contribution" equal to the amount
determined pursuant to paragraph (a) below minus the amount determined pursuant
to paragraph (b) below:

      

                 (a)  The amount determined pursuant to this
paragraph (a) is equal to the sum of: 

      

      (i)  the Deferred Compensation Eligible for
Matching for the year multiplied by 50% or such lesser matching rate as may be
applicable for the year (if any) under the first paragraph of subsection 4.4 of
the Investment Plan with respect to the Participant;
plus

      

      (ii)  the Deferred Compensation Eligible for
Matching for the year multiplied by the matching rate (if any) applicable for
the year under the second paragraph of subsection 4.4 of the Investment Plan
with respect to the Participant.

      

                 (b)  The amount determined pursuant to this
paragraph (b) is the sum of the amounts credited to the Participant’s Investment
Plan Account under the first paragraph and under the second paragraph of
subsection 4.4 of the Investment Plan for the year.

      

      A Participant’s “Deferred Compensation Eligible for
Matching” for any year is the amount deferred under this Plan for that year, up
to 6 percent of the Eligible Compensation (as defined in paragraph 4.1(d) of
this Plan).

      

      ARTICLE V
- PLAN ACCOUNTING

      

                 Section
5.1  Accounts.  The
Administrator shall establish an Account for each Participant who elects to
participate in the Plan under subsection 6.4.  Each Account shall be adjusted in
accordance with this Article V in a uniform, non-discriminatory manner, as of
such periodic "Accounting Dates" as may be determined by the Administrator from
time to time (which Accounting Dates shall be not less frequent than
quarterly).  As of each Accounting Date, the balance of each Account
shall be adjusted as follows:

      

                 (a)  first,
charge to the Account balance the amount of any distributions under the Plan
with respect to that Account that have not previously been charged;

      

                 (b)  then,
credit to the Account balance the amount of the compensation to be deferred by
the Participant in accordance with the provisions of subsection 4.1 and the
amount of Employer Matching Contributions to be credited in accordance with
Section 4.2  that have not previously been credited;

      

                 (c)  then,
adjust the Account balance for the applicable assumed rate of earnings in
accordance with subsection 5.2.

      

                 Section
5.2  Adjustment of Accounts for
Earnings.  The amounts credited to a Participant's Account in
accordance with subsections 4.1 and 4.2 shall be adjusted as of each Accounting
Date to reflect the value of an investment equal to the Participant's Account
balance in one or more assumed investments that the Committee offers from time
to time, and which the Participant directs the Administrator to use for purposes
of adjusting his Account.  Such amount shall be determined without
regard to taxes that would be payable with respect to any such assumed
investment.  The Committee may eliminate any assumed investment
alternative at any time; provided, however, that the Committee may not
retroactively eliminate any assumed investment alternative.  To the
extent permitted by the Administrator, the Participant may elect to have
different portions of his Account balance for any period adjusted on the basis
of different assumed investments.  The Account of each Participant
shall be credited with the amount deferred by the Participant as of the date on
which the amount is communicated to the Plan recordkeeper which shall be as soon
as reasonably practicable after the date the compensation would otherwise have
been payable to the Participant, or, if such date is not an Accounting Date, as
of the first Accounting Date occurring thereafter.  Notwithstanding
the election by Participants of certain assumed investments and the adjustment
of their Accounts based on such investment decisions, the Plan does not require,
and no trust or other instrument maintained in connection with the Plan shall
require that any assets or amounts which are set aside in a trust or otherwise
for the purpose of paying Plan benefits shall actually be invested in the
investment alternatives selected by Participants.

      

                 Section
5.3  Participant
Statements.  At least quarterly, the Administrator shall cause
to be furnished to each Participant a statement indicating, on the basis of the
latest available information, the status of the Participants'
Accounts.

      

      ARTICLE
VI - PAYMENT OF DEFERRED AMOUNTS

      

                 Section
6.1  Separation from
Service.  Subject to the provisions of subsections 1.5 and
6.4, and such other rules as the Administrator may establish, upon a
Participant's death or separation from service, the Participant's entire Account
balance, including the Employer's Matching Contribution on amounts deferred
prior to the Participant's death or separation date, shall be paid to or on
account of the Participant as follows:

      

                 (a)  in
a single lump sum payment as soon as practicable after his date of
death;

      

                 (b)  in
a single lump sum payment which shall be
due July 31 of the year following the year
in which separation occurs;
or

      

                 (c)  if
elected by the Participant (i) prior to January 1, 2009, or (ii) within 30 days after the date he
becomes eligible to participate in the Plan, in annual installments over a
period of five or fewer years, beginning on or about July 31 of the calendar
year following the date of his separation from service.

      

                 Section
6.2  Beneficiary
Designation.  Each Participant may, from time to time by
signing a form furnished by the Administrator, designate any legal or natural
person or persons (who may be designated contingently or successively) to whom
his benefits under the Plan are to be paid if he dies before he receives all of
his benefits.  A beneficiary designation form will be effective only
when the signed form is filed with the Administrator while the Participant is
alive.  A beneficiary designation may be revoked or amended only by
the completion of a new beneficiary designation form, provided, however, that if
a Participant’s spouse is named as such Participant’s beneficiary, and the
Participant and such spouse are subsequently divorced, then the designation of
the spouse made prior to the divorce shall be null and void. In order to
designate a former spouse as a beneficiary, a new beneficiary designation form
must be completed. If a deceased
Participant failed to designate a beneficiary as provided above, or if the
designated beneficiary of a deceased Participant died before him, his benefits
shall be paid in accordance with the following order of priority:  (i)
to his surviving spouse, if any; (ii) to his surviving children in equal shares;
or (iii) the estate of the last to die of the Participant or his designated
beneficiary.  The benefits under this Plan which are payable to a beneficiary shall be
paid in a lump sum.

       

          Section
6.3  Withholding for Tax
Liability.  The Company may withhold or cause to be withheld
from any payment of benefits made pursuant to the Plan any taxes required to be
withheld with regard to such payment.

       

          Section
6.4  Specified Employees.  If a Participant is a "Specified
Employee" at the time of his separation from service, payment of the
Participant’s Supplemental Plan benefits shall be made to him on the later of
the date otherwise scheduled for such payment or the first day of the seventh
month following such separation from service; provided that if payment of such
benefit is delayed by reason of this subsection 4.1, amounts otherwise due to
the Participant prior to the payment date shall be accumulated and paid to him,
without interest, on the first day of the seventh month.  “Specified Employee” shall be defined in accordance with
Treasury Regulation Section 1.409A-1(i) and such rules as may be established by
the Chief Executive Officer of the Company or his delegate from time to
time.

       

          Section
6.5  Accelerated Distribution.  If the Plan fails to meet
the requirements of Section 409A with respect to any Participant, the
Participant will receive a distribution
equal to the amount required to be included in income as a result of the
failure.

       

          Section
6.6  Termination of Employment.  A Participant’s
“Termination of Employment” (including references to a Participant’s employment
termination and terminating employment, as well as references to a Participant’s
separation, separation date, and separation from service) shall mean the
Participant ceasing to be employed by the Company and the Affiliated Companies,
subject to the following:

      

                 (a)  The employment relationship will be
deemed to have ended at the time the employee and his employer reasonably
anticipate that a level of bona fide services the employee would perform for the
Company and the Affiliated Companies after such date (whether as an employee or
independent contractor, but not as a director) would permanently decrease to no
more than 20% of the average level of bona fide services performed over the
immediately preceding 36 month period (or the full period of service to the
Company and the Affiliated Companies if the employee has performed services for
the Company and the Affiliated Companies for less than 36 months).  In
the absence of an expectation that the employee will perform at the
above-described level, the date of termination of employment will not be delayed
solely by reason of the employee continuing to be on the Company's and the
Affiliated Companies' payroll after such date.

      

                 (b)  The employment relationship will be
treated as continuing intact while the employee is on a bona fide leave of
absence (determined in accordance with Treasury Regulation Section
1.409A-1(h)).

       

          Section
6.7  Section 409A.  The Committee may modify the time at
which any payment under the Plan will be settled, paid-out, vested or
transferred if it determines that such modification may be necessary to avoid
acceleration of tax or imposition of penalties under Section
409A.  Regardless of whether the Committee modifies or fails to modify
the time at which any such Award is settled, paid-out, vested or transferred,
the Participant shall be solely liable for any taxes, including without
limitation taxes that may be imposed under Section 409A, penalties and interest
incurred by reason of such transfer.

      

      ARTICLE
VII - CHANGE IN CONTROL

      

                 Section
7.1  Change
in Control.  In the event of a change in control as defined in
The Burlington Northern Santa Fe 1999 Stock
Incentive Plan, all Accounts shall be fully vested.

      

                 Section 7.2.  Trust.  The
Company shall be obligated to transmit funds equal to the outstanding
liabilities under this Plan to the Burlington
Northern Santa Fe Corporation Amended and Restated Benefits Protection Trust or
a successor to such trust (such trust, together with any such successor,
referred to as the “Trust”) to the extent required by the provisions of such
Trust.

      

      ARTICLE
VIII - AMENDMENT OR TERMINATION

      

                 Section
8.1  Amendment or
Termination.  This Plan may be amended at any time and from
time to time by the Chief Executive Officer of the Company or resolution of the
Board of Directors of the Company; provided, however, the Chief Executive Officer of the
Company may not amend the Plan in any manner which would make benefit or other
changes materially increasing an Employing Company’s liabilities under the Plan,
make amendments required by law to be approved by the Board of Directors or a
committee thereof, make amendments which change the design of the Plan with
respect to the allocation of responsibilities, or make changes affecting the
Company’s indemnification obligations.  The Board of Directors of the
Company may terminate the Plan at any time without the consent of the
participants or beneficiaries.  No amendment or termination shall
divest any Participant or beneficiary of the credits to his Account, or any
rights to which he would have been entitled if the Plan had been terminated
immediately prior to the effective date of such amendment or
termination.  Any Employing Company may terminate its participation in
the Plan with respect to compensation or with
respect to services performed in calendar years after the year in which such
termination is adopted.  Upon termination of the Plan as to any
Employing Company, the Company may, in its discretion applied in a uniform
manner, provide that amounts attributable to that Employing Company shall be
distributed in accordance with the provisions of 6.1; and upon termination of the Plan as to all
Employing Companies, the Company may, in its sole discretion applied in a
uniform manner to all Participants, cause a lump sum payment of all benefits for
all Participants to be made as soon as reasonably practicable on the date
established for payment under subsection 6.1(b).  Notwithstanding the foregoing, in no event
shall any such termination or distribution be made to the extent that it would
not satisfy the provisions of Treasury Regulation Section 1.409A-3 (or other
applicable provisions of Section 409A).<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
<p class=MsoNormal align="center" style="margin-top: 0; margin-bottom: 0">DIRECTORS' DEFERRED FEE PLAN</p>
<p class=MsoNormal align="center" style="margin-top: 0; margin-bottom: 0">OF</p>
<p class=MsoNormal align="center" style="margin-top: 0; margin-bottom: 0">NORFOLK
SOUTHERN CORPORATION</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0" align="center">(Effective
June 1, 1982)</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0" align="center">Last
Amended January 1, 2009</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0" align="center">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0" align="center"><u>PURPOSE</u></p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0" align="center">&nbsp;</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Directors' Deferred Fee Plan (the &quot;Plan&quot;) as adopted and approved by
the Board of Directors (the &quot;Board&quot;) of Norfolk Southern Corporation
(&quot;NS&quot;), effective June&nbsp;1, 1982, and as last amended effective
January 1, 2009, makes available to NS directors a deferral election with
respect to the directors' annual compensation and fees to provide for
retirement and death benefits and thereby facilitate individual financial
planning.</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><u>SECTION
1.&nbsp; ADMINISTRATION</u></p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Plan Administrator shall be the Board.&nbsp; The Board shall from time to time adopt
rules and regulations determined to be necessary to ensure the effective implementation
of the Plan.&nbsp; The Board shall have the power to interpret the Plan, to
supervise the maintenance of the deferred memorandum accounts of participants
in the Plan and the method of distribution of those amounts credited to the
deferred memorandum accounts pursuant to Section 4.</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><u>SECTION
2.&nbsp; ELIGIBILITY</u></p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each
NS director who is not an employee of NS (a &quot;Non-Employee Director&quot;) shall be
eligible to be a participant in the Plan.</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><u>SECTION
3.&nbsp; DEFERRED COMPENSATION</u></p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A
Non-Employee Director may elect to have all or a specified part of the annual
compensation and fees earned for service on the Board credited to a deferred
memorandum account established pursuant to Section 4.&nbsp; The Non-Employee
Director making such an election (the &quot;Participant&quot;) shall do so by
filing with the Corporate Secretary on or before the date specified by the Plan
Administrator (the &quot;Election Deadline&quot;) an election on a form prescribed by the Corporate Secretary for
the purpose of specifying the percentage of compensation and fees to be
deferred and the distribution option under Section 6(b).&nbsp; </p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If
the Participant was a Non-Employee Director on December 31 preceding the
calendar year for which the compensation and fees to be deferred are earned, in
no event shall the Election Deadline be later than such December 31. &nbsp;&nbsp;&nbsp;&nbsp; The election shall apply only
to compensation and fees earned for services performed in calendar years
commencing after the Election Deadline.</p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If
the Participant either is elected to fill a vacancy on the Board or is elected
at the annual meeting of shareholders, and the Participant was not a
Non-Employee Director on the last day of the year preceding that Participant's
election, in no event
shall the Election Deadline be later than the end of the 30-day period following
such Participant's first day of eligibility to participate in the Plan.&nbsp; The
election shall apply only to compensation and fees earned for services
performed after the election.</p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; An
election so made by a Participant shall continue from year to year, unless the
Participant changes or revokes it by filing a new election with the Corporate
Secretary prior to the Election Deadline.&nbsp; The Participant's deferral election
and distribution election in effect on the Election Deadline shall be
irrevocable for the calendar year following the Election Deadline (or for the
portion of the calendar year following the election, in the case of an election
made during the initial 30-day period of participation in the Plan).&nbsp; Until a
Non-Employee Director makes a deferral election, the Non-Employee Director
shall be deemed to have elected to receive the entire compensation and fees in
cash.</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><u>SECTION
4.&nbsp; DEFERRED MEMORANDUM ACCOUNT</u></p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
amount of a Participant's annual compensation and fees which, pursuant to
Section 3, the Participant has elected to receive on a deferred basis shall by
appropriate bookkeeping entries be credited to that Participant's deferred
memorandum fixed interest or variable earnings accounts (the
&quot;Accounts&quot;) in accordance with the Plan terms and the Participant's
investment election applicable to such deferral.&nbsp; </p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Board shall have the right to delegate to NS' chief financial officer the
responsibility for supervising the maintenance of the Participants' respective
Accounts and, subject to Section 6, the method of distribution of the amounts
credited to the Accounts.&nbsp; In addition, the Board shall have the right to
delegate to NS' chief financial officer the responsibility to select
Hypothetical Investment Options, subject to subsection (b) of this Section,
made available to Participants solely for the purpose of valuing deferrals in
the Variable Earnings Accounts.</p>

<p class=MsoBodyText>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Accounts shall be utilized solely as a
device for the measurement of amounts to be paid to the Participant under the
Plan.&nbsp; The Accounts shall not constitute or be treated as an escrow, trust
fund, or any other type of funded account for ERISA or Internal Revenue Code
(&quot;Code&quot;) purposes and, moreover, contingent amounts credited thereto shall not
be considered plan assets for ERISA purposes.&nbsp; The Accounts merely provide a
record of the bookkeeping entries relating to the contingent benefits that NS
intends to provide to the Participant and thus reflect a mere unsecured promise
to pay such amounts in the future.</p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp; Fixed Interest Account.&nbsp; Amounts deferred before January 1, 2001, shall be
credited to a Participant's Fixed Interest Account as provided in this
subsection.&nbsp; Unless otherwise stated herein or determined by the Board, each
Participant's Account shall also be credited at the end of each quarter by
appropriate bookkeeping entries with an amount equivalent to interest
(&quot;Interest&quot;) on the amount credited to the Participant's Fixed
Interest Account at the beginning of the quarter at a rate determined by the
Participant's age at the time the deferral is made.&nbsp; For purposes of
determining the appropriate rates, a deferral is deemed to occur when the
compensation and fees would otherwise have been paid.&nbsp; Amounts deferred on or
after January 1, 1994, shall accrue Interest based on the Participant's age at
the time of deferral at the rates set forth below:</p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Age</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;<u>Rate</u></p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under 45 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7%</p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 45-54&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10%</p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; 55&#8209;60&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11%</p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Over
60&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12%</p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amounts
deferred on or after January 1, 1992, and prior to January 1, 1994, shall
accrue Interest based on the Participant's age at the time of deferral at the
rates set forth below:</p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Age</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;<u>Rate</u></p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
Under 45 &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13%</p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;45&#8209;54&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; 14%</p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 55&#8209;60&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp; 15%</p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Over
60&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp; &nbsp;16%</p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amounts
deferred on or after January 1, 1987, and prior to January 1, 1992, shall
accrue Interest based on the Participant's age at the time of deferral at the
rates set forth below:</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Age</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;<u>Rate</u></p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under 45 &nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15%</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 45&#8209;54&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16%</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 55&#8209;60&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; 17%</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Over 60&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; 18%</p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amounts
deferred under the Plan prior to January 1, 1987, shall accrue Interest at a
rate determined by the Participant's age on January 1, 1987, as if such amounts
had been deferred on January 1, 1987.&nbsp; Interest on each deferral shall continue
to accrue at the rate determined by the Participant's age at the time the
deferral is made until all benefits payable hereunder have been distributed to,
or with respect to, the Participant.</p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp; Variable Earnings Account.&nbsp; Amounts deferred on or after January 1, 2001, shall
be credited to a Participant's Variable Earnings Account as provided in this
subsection.&nbsp; Investment funds or benchmarks shall be selected from time to time
by the Plan Administrator or its designee (as provided in this Section) and
made available to Participants solely for the purpose of valuing deferrals.&nbsp;
Such funds or benchmarks shall be referred to as &quot;Hypothetical Investment
Options.&quot;&nbsp; </p>

<p class=MsoBodyTextIndent>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unless otherwise stated herein or determined by the
Board of Directors, an amount equivalent to earnings or losses (&quot;Earnings&quot;)
shall accrue on or be deducted from all deferrals, beginning when the compensation
and fees would otherwise have been paid, in accordance with the Participant's
selection of Hypothetical Investment Options. Earnings shall be determined
based upon the Hypothetical Investment Option(s) elected by the Participant. If
a Participant does not elect Hypothetical Investment Options for the deferrals,
then Earnings shall be determined based on such Hypothetical Investment Options
as may be designated by the Plan Administrator to apply in the absence of an
election.&nbsp; Participants will be required to elect a Hypothetical Investment
Option(s) at the time a deferral election is made for amounts deferred on or
after January 1, 2001, and such investment election will apply to all
subsequent deferrals until the Participant changes such election.&nbsp; Participants
will be permitted at any time prior to the complete pay out of their Variable
Earnings Account balance to elect to change their Hypothetical Investment
Option(s) with respect to all or part of their Variable Earnings Account
balances effective as soon as practicable following such election.&nbsp; The
procedure for electing to change a Hypothetical Investment Option(s) will be
established by the Plan Administrator.&nbsp; An election to change a Hypothetical
Investment Option for part of a Variable Earnings Account balance must be made
in increments of 1% of the Variable Earnings Account balance or a specified
dollar amount.</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; While
a Participant's Accounts do not represent the Participant's ownership of, or
any ownership interest in, any particular assets, the Participant's Variable
Earnings Account shall be adjusted in accordance with the performance of the
Hypothetical Investment Options chosen by the Participant.&nbsp; Any cash earnings
generated under a Hypothetical Investment Option (such as interest and cash
dividends and distributions) shall be deemed to be reinvested in that
Hypothetical Investment Option.&nbsp; All notional acquisitions and dispositions of
Hypothetical Investment Options which occur within a Participant's Variable
Earnings Account, pursuant to the terms of the Plan, shall be deemed to occur
at such times as the Plan Administrator shall determine to be administratively
feasible in its sole discretion and the Participant's Variable Earnings Account shall be adjusted accordingly.&nbsp; In the event
of a Change in Control, the practices and procedures for determining any
Earnings credited to any Participants' Variable Earnings Accounts following a
Change in Control shall be made in a manner no less favorable to Participants
than the practices and procedures employed under the Plan, or otherwise in
effect, as of the date of the Change in Control.&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><u>SECTION 5.&nbsp;
RESTRICTIONS</u></p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Participants shall have only those rights in respect of the amounts credited to
their Accounts specifically set forth herein.</p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No
Participant may, prior to the distribution of funds pursuant to Section 6,
sell, assign, transfer, distribute, pledge as collateral for a loan or as
security for the performance of any obligation, exchange or otherwise dispose
of any interest in the amounts credited to that Participant's Accounts.&nbsp; </p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
amounts credited to the Accounts shall remain assets of NS until distributed to
Participants pursuant to Section 6.</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><u>SECTION
6.&nbsp; DISTRIBUTION</u></p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp; Fixed Interest Account.&nbsp; Except as otherwise provided in Section 7,
distributions of the amounts credited to a Participant's Fixed Interest Account
shall be made in ten annual cash installments beginning with the first day of
the calendar year immediately following the year when a Participant ceases to
be an NS director by retirement or otherwise.&nbsp; </p>

<p class=MsoNormal style='margin-left:0in;text-indent:.5in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;Variable
Earnings Account.&nbsp; No
later than the Election Deadline for each calendar year's deferrals, a
Participant may elect one of the two distribution options described in this
Section 6(b) for amounts credited to the Variable Earnings Account.&nbsp; If a
Participant fails to elect the time and form of distribution for a particular
calendar year's deferrals by the Election Deadline, the Participant shall be
deemed to have made the same distribution election as he last made for a
calendar year's deferrals.&nbsp; If the Participant has never elected the time and
form of distribution of his deferral, the Participant's distribution will be
made in one lump sum after the Participant experiences a&nbsp; &quot;separation from service&quot;
within the meaning of section 409A of the Code and the regulations thereunder
for a reason other than the Participant's death (a &quot;Separation From Service&quot;). </p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Participant must elect to have the benefit distributed either (i) beginning
with the first day of the calendar year immediately following the year when the
Participant experiences a Separation From Service, or (ii) upon the earlier of
the Participant's Separation From Service or a specified date at least five (5)
years but not more than fifteen (15) years after the calendar year in which the
deferred amount is earned (&quot;Specified Date&quot;).&nbsp; If the Participant elects to
receive the benefit upon Separation from Service, he may elect to have the
benefit distributed to him in one lump sum or in annual installment payments that
are distributed over a period of five (5), ten (10), or fifteen (15) years.&nbsp;
The amount of each annual installment payment shall be determined by dividing
the balance credited to the Participant's Variable Earnings Account on each
payment date by the number of installments remaining.&nbsp; For purposes of Section
409A of the Code, a series of installment payments will be considered a single
payment.&nbsp; Any benefit which a Participant elects to receive on the earlier of
Separation from Service or a Specified Date will be distributed in one lump
sum.&nbsp; </p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For
each calendar year's deferrals for which the Participant elected to have the
benefit distributed on a Specified Date, the Participant shall be paid the
amount in the Account for that calendar year's deferrals on the first day on or
after the date selected or, if the Participant's Separation From Service is
earlier than the Specified Date, on the first day following the date of the
Separation From Service.&nbsp;&nbsp; </p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For
a Participant who did not elect distribution on a Specified Date, the
Participant shall be paid on the first day of the calendar year following the
date the Participant experiences a Separation From Service, the amount in the
Variable Earnings Account which is attributable to deferrals for which the
Participant elected a lump sum distribution.&nbsp; </p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For
distributions other than lump sum distributions, payments shall commence on the
first day of the calendar year following the date the Participant experiences a
Separation From Service and shall be made in installments on the first day of
each year thereafter for each applicable deferral based on the distribution
elections made by the Participant.&nbsp; The annual installment payment for each
applicable deferral shall be an amount equal to the remaining balance in the
Participant's Account for that deferral, valued at the end of the calendar year
preceding the installment payment, divided by the remaining number of annual payments
not yet distributed for that deferral.</p>

<p class=MsoNormal style='margin-left:0in;text-indent:.5in'>(c)&nbsp;&nbsp;&nbsp;&nbsp;Death of the
Participant.&nbsp; The Participant may designate a beneficiary or beneficiaries who
shall receive a distribution of funds pursuant to this Section 6 in the event
of the Participant's death.&nbsp; In the absence of such designation, or if the
beneficiary predeceases the Participant, the beneficiary shall be the
Participant's surviving spouse or, if the Participant does not have a surviving
spouse, the Participant's estate.&nbsp; In order to be effective, a Participant's
designation of a beneficiary must be on file with NS before the Participant's
death. &nbsp;Any such designation may be revoked and a new designation submitted by
the Participant at any time before his death without the consent of the
previously designated beneficiary.</p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upon
the death of a Participant prior to the expiration of the period during which
the deferred amounts are payable, the balance of the deferred fees and Earnings
credited to the Fixed Interest Account and Variable Earnings Account shall be
payable to the beneficiary or beneficiaries in full on the first day of the
calendar year following the year in which the Participant dies.</p>

<p class=MsoNormal style='text-align:justify; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)&nbsp;&nbsp;&nbsp;&nbsp;Administrative Adjustments in Payment
Date.&nbsp; A payment under
Section 6(b) or 6(c) is treated as being made on the date when it is due under
the Plan if the payment is made on the due date specified by the Plan, or on a
later date that is either (i)&nbsp;in the same calendar year (for a payment
whose specified due date is on or before September 30), or (ii) by the 15th day
of the third calendar month following the date specified by the Plan (for a
payment whose specified due date is on or after October 1).&nbsp; A payment also is
treated as being made on the date when it is due under the Plan if the payment
is made not more than 30 days before the due date specified by the Plan.&nbsp; A
Participant or beneficiary may not, directly or indirectly, designate the
taxable year of a payment made in reliance on the administrative rules in this
paragraph.</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><u>SECTION
7. &nbsp;CHANGE IN CONTROL</u></p>

<p class=MsoBodyText>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If, on the date of a Change in Control (as
defined herein) or a 409A Change in Control (as defined herein), a Participant
who was serving as a Non-Employee Director of NS on the day immediately
preceding the date of the Change in Control or 409A Change in Control experiences
a Separation From Service, then, notwithstanding the provisions of Section 6,
such Participant shall receive the following:</p>

<p class=MsoBodyText>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;For the Fixed Interest Account, a
lump-sum cash payment equal to the present value on the Participant's last day
of service as a Non-Employee Director, using a discount rate of 4.5 percent, of
any stream of installment payments that the Participant would have received had
the Participant served as a Non-Employee Director until the latest date
permitted under the Retirement Policy for Non-Employee Directors as in effect
on the day before the Change in Control; and</p>

<p class=MsoBodyText style='margin-left:0in;text-indent:.5in'>(b)&nbsp;&nbsp;&nbsp;&nbsp;For the Variable Earnings Account, in the event of a 409A Change in
Control, a lump-sum cash payment equal to the present value on the
Participant's last day of services as a Non-Employee Director, using a discount
rate of 4.5 percent.&nbsp; The present value will be calculated assuming that the
Participant would have served as a Non-Employee Director until the latest date
permitted under the Retirement Policy for Non-Employee Directors as in effect
on the day before the Change in Control, and the projected Earnings used to
determine such present value will be calculated in accordance with the Interest
rate specified in Section 4(a) based on the Participant's age immediately
preceding the date of a Change in Control and applied to the Participant's
Variable Earnings Account balance on such date.&nbsp; In the event of a Change in
Control that is not a 409A Change in Control, the benefit shall be calculated
as described above except that any portion of the Participant's deferred compensation
benefit that is not a Grandfathered Benefit under Section 15, exclusive of any
projected Earnings as described in this section, shall be paid at the time and
in the form the benefit would have been paid absent a Change in Control.&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;</p>

<p class=MsoBodyText>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any payment made pursuant to this Section 7
will be in full satisfaction of all amounts credited to the Participant's
Accounts.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A
Change in Control shall occur upon any of the following circumstances or
events:</p>

<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NS
consummates a merger or other similar control-type transaction or transactions
(however denominated or effectuated) with another corporation or other entity
(Combination), and immediately thereafter less than eighty percent (80%) of the
combined voting power of the then-outstanding securities of such corporation or
entity is held in the aggregate by the holders of securities entitled,
immediately prior to such Combination, to vote generally in the election of NS
directors (Voting Stock);&nbsp; </p>

<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NS
consummates any stockholder-approved consolidation or dissolution (however
denominated or effectuated) pursuant to a recommendation of the Board;</p>

<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'>&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At any time,
Continuing Directors (as herein defined) shall not constitute a majority of
the members of the Board (&quot;Continuing Director&quot; means (i) each individual who
has been a director of NS for at least twenty-four (24) consecutive months
before such time and (ii) each individual who was nominated or elected to be a
director of NS by at least two-thirds (2/3) of the Continuing Directors at the
time of such nomination or election); or</p>

<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NS sells all
or substantially all of its assets to any other corporation or other entity,
and less than eighty percent (80%) of the combined voting power of the
then-outstanding securities of such corporation or entity immediately after
such transaction is held in the aggregate by the holders of Voting Stock
immediately prior to such sale.</p>

<p class=MsoNormal>A Change in
Control under Section 409A of the Code (a &quot;409A Change in Control&quot;) shall occur
upon any of the following circumstances or events: </p>

<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A person, or
more than one person acting as a group, acquires ownership of stock of NS that,
together with stock held by such person or group, constitutes more than fifty
percent (50%) of the total fair market value or total voting power of the stock
of NS;&nbsp; </p>

<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A person, or
more than one person acting as a group, acquires (or has acquired during the
12-month period ending on the date of the most recent acquisition by such
person or persons) ownership of stock of NS possessing thirty percent (30%) or
more of the total voting power of NS;</p>

<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'>&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Continuing
Directors (as herein defined) no longer constitute a majority of the members of
the Board (&quot;Continuing Director&quot; means (i) each individual who has been a
director of NS for at least twelve (12) consecutive months before such time and
(ii) each individual who was nominated or elected to be a director of NS by at
least a majority of the directors at the time of such nomination or election);
or</p>

<p class=MsoNormal style='margin-left:1.0in;text-indent:-1.0in'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A person, or
more than one person acting as a group, acquires (or has acquired during the
12-month period ending on the date of the most recent acquisition by such
person or persons) assets from NS that have a total gross fair market value
equal to forty percent (40%) or more of the total gross fair market value of
all of the assets of NS immediately before such acquisition.&nbsp; </p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">For
purposes of a 409A Change in Control, persons will be considered to be acting
as a group if they are owners of a corporation that enters into a merger,
consolidation, purchase or acquisition of stock or similar business transaction
with NS.&nbsp; The definition of a 409A Change in Control shall be interpreted and
applied in a manner consistent with section 409A of the Code.</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><u>SECTION
8.&nbsp; RECALCULATION EVENTS</u>&nbsp;&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NS'
commitment to accrue and pay Interest and Earnings as provided in Section 4 is
facilitated by the purchase of corporate&#8209;owned life insurance purchased
on the lives of eligible Participants.&nbsp; If the Board, in its sole discretion,
determines that any change whatsoever in Federal, State or local law, or in its
application or interpretation, has materially affected, or will materially
affect, the ability of NS to recover the cost of providing the benefits
otherwise payable under the Plan, then, if the Board so elects, a Recalculation
Event shall be deemed to have occurred.&nbsp; If a Recalculation Event occurs, then
Interest and/or Earnings shall be recalculated and restated using a lower rate
of Interest and/or Earnings determined by the Board, but which shall be not
less than one-half (1/2) the rate of Earnings provided for in Section 4(b) or
one&#8209;half (1/2) the rate of Interest provided in Section 4(a), as
applicable.&nbsp; </p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;</p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;</p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>
<u>SECTION 9.&nbsp; AMENDMENTS</u></p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Board in its sole discretion may at any time modify or amend any provisions of
the Plan, or suspend or terminate the Plan.&nbsp; However, except as otherwise
provided in Section 8, no modification, amendment, suspension or termination of
the Plan may, without the Participant's consent, apply to or affect the rights
of a Participant in respect of amounts credited to the Participant's Account
for any month ended prior to the effective date of that modification,
amendment, suspension or termination.&nbsp; In no event shall a termination of the
Plan accelerate the distribution of amounts deferred under the Plan in calendar
year 2005 and succeeding years, except to the extent permitted in regulations
or other guidance under section 409A of the Code and expressly provided in the
resolution terminating the Plan.</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><u>SECTION
10.&nbsp; NATURE AND SOURCE OF PAYMENTS</u></p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
obligation to make payments hereunder with respect to each Participant shall
constitute a liability of NS to the Participant and any beneficiaries in
accordance with the terms of the Plan.&nbsp; NS may establish one or more grantor
trusts within the United States to which NS may transfer such assets as NS
determines in its sole discretion to assist NS to accumulate assets that can be
used to pay benefits under the Plan.&nbsp; While NS generally reserves the right to establish
or fund any such grantor trust at any time, it shall not fund such trust in
connection with a change in NS' financial health to the extent that such
funding would not comply with the requirements of section 409A of the Code.&nbsp;
The provisions of the Plan shall govern the rights of NS, Participants and the
creditors of NS to the assets transferred to the trust.&nbsp; NS' obligations under
the Plan may be satisfied with trust assets distributed pursuant to the terms
of the trust, and any such distribution shall reduce NS' obligations under this
Plan.</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Participants
and beneficiaries shall stand in the position of unsecured creditors of NS, and
all rights hereunder and under any trust are subject to the claims of creditors
of NS.</p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;</p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;</p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>
<u>SECTION 11.&nbsp; EXPENSES OF ADMINISTERING PLAN</u></p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>
&nbsp;</p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All expenses of administering the Plan shall be
borne by NS, and no part thereof shall be charged against the benefit of any
Participant, except the costs of the Hypothetical Investment Options in the
Variable Earnings Account, which shall be charged against the value of
deferrals measured against those funds.</p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;</p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;</p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>
<u>SECTION 12.&nbsp; FACILITY OF PAYMENT</u></p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>
&nbsp;</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If
the Board shall find that any individual to whom any amount is payable under
the Plan is unable to care for his or her affairs because of illness or
accident or is a minor or other person under legal disability, any payment due
such individual (unless a prior claim for such payment shall have been made by
a duly appointed guardian, committee, or other legal representative) may be
paid to the spouse, a child, a parent, or a brother or sister of such
individual, or to any other person deemed by the Board to have incurred
expenses of such individual, in such manner and proportions as the Board may
determine.&nbsp; Any such payment shall be a complete discharge of the liabilities
of NS with respect thereto under the Plan.</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0"><u>SECTION
13.&nbsp; CONTINUED SERVICE</u></p>
<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nothing
contained herein or in a deferral agreement shall be construed as conferring
upon any Participant the right nor imposing upon the Participant the obligation
to continue in the service of NS in any capacity.</p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;</p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;</p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>
<u>SECTION 14.&nbsp; DISPUTED QUESTIONS</u></p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>
&nbsp;</p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any disputed question arising under the Plan,
including questions of construction and interpretation, shall be determined
conclusively and finally by the Board.</p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;</p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;</p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>
<u>SECTION 15.&nbsp; EFFECTIVE DATE</a></u></p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>
&nbsp;</p>

<p class=MsoNormal style="margin-top: 0; margin-bottom: 0">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Plan became effective on June 1, 1982, and was last amended effective January
1, 2009.&nbsp; The Plan, as
hereby amended and restated, is effective with respect to amounts that were not
earned and vested (within the meaning of section 409A of the Code) before
January 1, 2005, and any earnings on such amounts.&nbsp; Amounts earned and vested
(within the meaning of section 409A of the Code) before January 1, 2005, and
earnings on such amounts (collectively, &quot;Grandfathered Amounts&quot;), remain
subject to the terms of the Plan as in effect on October 3, 2004.&nbsp; For
recordkeeping purposes, the Company will account separately for Grandfathered
Amounts.</p>

<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;</p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>&nbsp;</p>
<p class=MsoNormal style='page-break-after:avoid; margin-top:0; margin-bottom:0'>
<u>SECTION 16.&nbsp; INTERNAL REVENUE CODE SECTION 409A</u></p>

<p class=MsoNormal>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Plan is intended, and shall be construed, to comply with the requirements of
section 409A of the Code.&nbsp; NS does not warrant that the Plan will comply with
section 409A of the Code with respect to any Participant or with respect to any
payment, however.&nbsp; In no event shall NS, its officers, directors, employees,
parents, subsidiaries, or affiliates be liable for any additional tax,
interest, or penalty incurred by a Participant or beneficiary as a result of
the Plan's failure to satisfy the requirements of section 409A of the Code, or
as a result of the Plan's failure to satisfy any other applicable requirements
for the deferral of tax. </p>

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