Document:

exhibit10_6.htm

    Exhibit
10.6

     

    Officer Template -
Amendment to the Terms and Conditions of Employment

     

    [DATE],
2008

    

    

    Re:
Amendment of the Terms and Conditions of Employment

     

    Dear
[  ],

    

    As you
know, Section 409A, which governs the payment of deferred compensation plans and
arrangements, was added to the Internal Revenue Code in October
2004.  In order to comply with Section 409A and to avoid its harsh
income taxes and penalties, we need to amend the Terms and Conditions of
Employment, dated as of [  ], between you and Brunswick Corporation
(“Brunswick”) (the “Employment Agreement”).  In addition, since the
compensation committee of the Board (the “Committee”) has concluded that it is
in the best interest of Brunswick’s stockholders to discontinue certain
programs, including the Strategic Incentive Plan [, financial counseling
services] [ and excess liability insurance coverage benefits], we need to amend
the Employment Agreement to remove references to [this][those]
program[s].  Furthermore, the Committee has determined that it is
desirable to expand the types of payments that Brunswick would be entitled to
recover in the event of a violation of the restrictive covenants set forth in
Section 5(a) and (b) of the Employment Agreement.  Therefore, you and
Brunswick hereby agree, in accordance with Section 16 of the Employment
Agreement, to amend the Employment Agreement as set forth in this letter
agreement.

    

    All
capitalized terms used in this letter agreement but not otherwise defined herein
will have the same meaning as defined in the Employment Agreement, and all
section references are to a section of the Employment Agreement, unless
otherwise specified.

    

    Accordingly,
you and Brunswick hereby agree that, notwithstanding anything to the contrary
set forth in the Employment Agreement:

    

    
      	
              1.  

            	
              Timing of Payments
      under Brunswick Performance Plan.  All payments under the
      Brunswick Performance Plan, and any and all successor or replacement
      plans, described in Sections 4(b), 6(a)(ii), 6(b)(i), 6(b)(ii), 6(c)(ii)
      and 6(c)(iii) of the Employment Agreement will be paid to you in
      accordance with the terms of the Brunswick Performance
    Plan.

            

    

     

    
      	
              2.  

            	
              Discontinuance of
      Certain Compensation and Benefits.  All references in the
      Employment Agreement to [(i)] the Strategic Incentive Plan (including,
      without limitation, Section 4(c) of the Employment Agreement in its
      entirety, Sections 6(a)(ii), 6(b)(i)(iii), 6(b)(ii) and 6(c)(ii) of the
      Employment Agreement, the definitions of “Reduction in Compensation”,
      “SIP”, “SIP Bonus” and “Target SIP Bonus” and Appendix II of the
      Employment Agreement), except to the extent provided in paragraph 7 of
      this letter agreement[, (ii) financial counseling services (including,
      without limitation, Section 4(e) of the Employment Agreement in its
      entirety and Sections 6(a)(iv) and 6(b)(iv) of the Employment Agreement)
      and] [(iii) excess liability coverage (including, without limitation,
      Section 4[(k)][(l)](ii) of the Employment Agreement in its entirety and
      Sections 6(a)(iv) and 6(b)(iv) of the Employment Agreement)], are hereby
      deleted.

            

    

     

    
      	
              3.  

            	
              Vacation
      Payout.  Upon termination of your employment with
      Brunswick, your earned but unused vacation described in Section
      4[(f)][(g)][(h)] of the Employment Agreement will be paid to you within 30
      days following termination.

            

    

     

    
      	
              4.  

            	
              Additional Clawback
      Provisions.  In the event of any material breach by the
      Executive of the provisions of Section 5(a) or (b) of the Employment
      Agreement, the Executive shall be obligated to pay to the Company, in
      cash, within five business days after written demand is made therefor by
      the Company, an amount equal to any payments received by the Executive
      under Sections 6(a), (b) and [(f)] of the Employment
      Agreement.  In addition, the period described in Section
      5(e)(ii)(C) of the Employment Agreement shall commence twelve months prior
      to the date of the Executive’s termination of employment for any
      reason.

            

    

     

    
      	
              5.  

            	
              Timing of Total
      Severance Payment.  In the event that the Total Severance
      Payment described in Section 6(a)(i) of the Employment Agreement becomes
      payable, it will be paid in equal installments, in accordance with the
      Company’s regular payroll practices and procedures, as if it were to be
      paid over a 18-month period that commences on the first payroll date
      following the Release Effective Date; provided that all unpaid portions of
      the Total Severance Payment will be distributed to you in a lump sum on
      the payroll date immediately preceding March 15 of the calendar year
      following the calendar year in which the date of termination
      occurs.  However, if you are to attain age 65 prior to the
      second anniversary of the date on which your employment terminates, the
      Total Severance Payment will be reduced to a level determined by
      multiplying the amount of such payment by a fraction, the numerator of
      which will be the number of full months between the date of termination
      and the date you will attain age 65 (and the numerator will not be reduced
      to reflect any six-month delay in payment that may be required pursuant to
      Section 7 of the Employment Agreement), and the denominator of which will
      be 18.  In addition, the 18-month period described in the first
      sentence of this paragraph 5 will also be reduced
    accordingly.

            

    

     

    
      	
              6.  

            	
              Timing of Total Change
      in Control Payment.  In the event that the Total Change
      in Control Payment becomes payable under Section 6(b)(i) of the Employment
      Agreement, it will be paid in a lump sum on the Release Effective
      Date.

            

    

     

    
      	
              7.  

            	
              Calculation of Total
      Change in Control Payment.  In light of the elimination
      of the Strategic Incentive Plan by the compensation committee of the
      Board, the reference in Section 6(b)(i)(iii) of the Employment Agreement
      to the targeted bonus under the Strategic Incentive Plan for the period
      that ended most recently prior to a Change in Control will refer to the
      Strategic Incentive Plan [2006-2007] period for any termination of
      employment under Section 6(b) of the Employment Agreement that occurs on
      or before December 31, 2010; provided, however, that
      with respect to any such termination that occurs after December 31, 2010,
      Section 6(b)(i)(iii) of the Employment Agreement will have no effect and
      the Total Change in Control Payment will be calculated without regard to
      the Strategic Incentive Plan.

            

    

     

    
      
        	
                8.  

              	
                Treatment of
      Performance-Based Awards.  In the event that the Equity
      Incentive awards become fully vested and, if applicable, immediately
      exercisable, under Section 6(b)(iii) of the Employment Agreement, the
      treatment of all awards held by you that are subject to performance-based
      vesting criteria will be governed by the terms and conditions of the
      equity compensation plans and award agreements and/or award terms pursuant
      to which they were granted.

              

      

       

    

    
      
        
        

      

      
        1

        
        

      

      
        
        

      

       

    

    
      	
              9.  

            	
              Timing of Accrued Base
      Salary Payment.  Any payment of any unpaid Base Salary
      accrued through a date of termination described in Section 6(c)(i), 6(d)
      or 6(e) of the Employment Agreement will be paid to you on the regularly
      scheduled payment date for such Base
Salary.

            

    

     

    
      	
              10.  

            	
              Timing of Severance
      Payment Based on Pension Plan and Supplemental Plan
      Accrual.  In the event that the payment described in
      Section 6(f)(i) of the Employment Agreement becomes payable under such
      section, it will be paid in a lump sum on the Release Effective
      Date.

            

    

     

    
      	
              11.  

            	
              Termination for Good
      Reason.  The 15-day notice of termination period
      described in Section 6(g)(i) of the Employment Agreement will be extended
      to a 60-day period, and a termination of your employment, as specified in
      such notice, will occur no later than the second anniversary of the date
      of the occurrence of the event giving rise to Good
  Reason.

            

    

     

    
      	
              12.  

            	
              Section 409A of the
      Code.  Section 7 of the Employment Agreement will be
      deleted in its entirety and the following language will be inserted in its
      place:  “The provisions of this Section 7 shall apply
      notwithstanding any provision in this Agreement to the
      contrary.

            

    

     

    
      	
              a.  

            	
              Intent to Comply with
      Section 409A of the Code. It is intended that the provisions of
      this Agreement comply with Section 409A of the Code, and all provisions of
      this Agreement shall be construed and interpreted in a manner consistent
      with the requirements for avoiding taxes or penalties under Section 409A
      of the Code.

            

    

     

    
      	
              b.  

            	
              Six-Month Delay of
      Certain Payments.  If, at the time of the Executive’s
      separation from service (within the meaning of Section 409A of the Code),
      (i) the Executive shall be a specified employee (within the meaning of
      Section 409A of the Code and using the identification methodology selected
      by the Company from time to time) and (ii) the Company shall make a good
      faith determination that an amount payable under this Agreement or any
      other plan, policy, arrangement or agreement of or with the Company or any
      Related Company (this Agreement and such other plans, policies,
      arrangements and agreements, the “Company Plans”) constitutes deferred
      compensation (within the meaning of Section 409A of the Code) the payment
      of which is required to be delayed pursuant to the six (6)-month delay
      rule set forth in Section 409A of the Code in order to avoid taxes or
      penalties under Section 409A of the Code, then the Company (or a Related
      Company, as applicable) shall not pay any such amount on the otherwise
      scheduled payment date but shall instead accumulate such amount and pay
      it, without interest, on the first day of the seventh (7th) month
      following such separation from
service.

            

    

     

    
      	
              c.  

            	
              Prohibition of
      Offsets. Except as permitted under Section 409A of the Code, any
      deferred compensation (within the meaning of Section 409A of the Code)
      payable to or for the benefit of the Executive under any Company Plan may
      not be reduced by, or offset against, any amount owing by the Executive to
      the Company or any Related Company.

            

    

     

    
      	
              d.  

            	
              Amendment of Deferred
      Compensation Plans; Indemnification for Section 409A
      Taxes.  From and after the Effective Date and for the
      remainder of the Term, (i) the Company shall administer and operate this
      Agreement and any “nonqualified deferred compensation plan” (as defined in
      Section 409A of the Code) (and any other arrangement that could reasonably
      be expected to constitute such a plan) in which the Executive participates
      and the Executive’s rights and benefits hereunder and thereunder in
      compliance with Section 409A of the Code and any rules, regulations or
      other guidance promulgated thereunder as in effect from time to time, (ii)
      in the event that the Company determines that any provision of this
      Agreement or any such plan or arrangement does not comply with Section
      409A of the Code or any such rules, regulations or guidance and that the
      Executive may become subject to additional taxes and penalties under
      Section 409A of the Code (“Section 409A Tax”), the Company shall amend or
      modify such provision to avoid the application of such Section 409A Tax
      but only to the minimum extent necessary to avoid the application of such
      Section 409A Tax and only to the extent that the Executive would not, as a
      result, suffer (A) any reduction in the total present value of the amounts
      otherwise payable to the Executive (determined without application of the
      Section 409A Tax), or the benefits otherwise to be provided to the
      Executive, by the Company, (B) any material increase in the risk of the
      Executive not receiving such amounts or benefits which he would have
      received without the application of the Section 409A Tax and any amendment
      pursuant to this Section 7 or (C) unless the Executive otherwise expressly
      consents in writing, any significant reduction in the Executive’s legal
      rights under this Agreement or any Company Plan, and (iii) in the event
      that, notwithstanding the foregoing, the Executive is subject to a Section
      409A Tax with respect to any such provision, the Company shall indemnify
      and hold the Executive harmless against all taxes (and any interest or
      penalties imposed with respect to such taxes) imposed as a result of the
      Company’s failure to comply with clause (i) of this Section
      7(d).   The provisions of Sections 10(c), (d), (e) and (f)
      shall apply mutatis mutandis to any claim by the IRS that, if successful,
      would give rise to indemnification by the Company under this Section
      7(d).

            

    

     

    
      	
              e.  

            	
              Payment Schedules
      Relating to Tax Indemnification.  Any amounts payable to
      the Executive in respect of indemnification pursuant to Section 7(d) for
      the Section 409A Tax or the Excise Tax Adjustment Payment pursuant to
      Section 10(a) shall be paid to the Executive as soon as practicable after
      the applicable liability is incurred, but in any event not later than the
      last day of the calendar year after the calendar year in which the
      Executive remits the applicable taxes, interest or penalties to the
      applicable taxing authority, in accordance with Treas. Reg. Section
      1.409A-3(i)(1)(v) or any successor thereto.  Furthermore, any
      amounts that the Executive becomes entitled to receive in respect of costs
      and expenses incurred in connection with a contest relating to Section
      7(d) or 10(e) shall be paid to the Executive as soon as practicable after
      the applicable cost is incurred, but in any event not later than the later
      of (i) the last day of the calendar year after the calendar year in which
      the Executive remits the underlying taxes to the applicable taxing
      authority and (ii) the last day of the calendar year after the calendar
      year in which the applicable contest is
  concluded.

            

    

     

    
      
        
        

      

      
        2

        
        

      

      
        
        

      

    

     

    
      	
              f.  

            	
              Designation of
      Installments as Separate Payments.  For purposes of
      Section 409A of the Code, each installment payment to the Executive
      provided for in this Agreement or any Company Plan shall be deemed to be a
      “separate payment” within the meaning of Treas. Reg. Section
      1.409A-2(b)(iii) or any successor
thereto.

            

    

     

    
      	
              g.  

            	
              Timing of
      Reimbursement Payments and Other Benefits.  Except as
      specifically permitted by Section 409A of the Code, the benefits and
      reimbursements, including for legal fees, provided to the Executive under
      this Agreement and any Company Plan during any calendar year shall not
      affect the benefits and reimbursements to be provided to the Executive
      under the relevant section of this Agreement or Company Plan in any other
      calendar year and the right to such benefits and reimbursements cannot be
      liquidated or exchanged for any other benefit, in accordance with Treas.
      Reg. Section 1.409A-3(i)(1)(iv) or any successor
      thereto.  Furthermore, reimbursement payments shall be made to
      the Executive as promptly as practicable following the date that the
      applicable expense is incurred, but in any event not later than the last
      day of the calendar year following the calendar year in which the
      underlying fee, cost or expense is
incurred.

            

    

     

    
      	
              h.  

            	
              Timing of Transition
      Services.  The use of any transition counseling services
      provided in this Agreement, if desired, shall begin prior to the first
      (1st) anniversary of the date of termination, and must end prior to the
      last day of the second (2nd) calendar year following the year in which the
      date of termination occurs.”

            

    

     

    
      	
              13.  

            	
              Legal
      Fees.  The legal fees described in Section 8 and Appendix
      IV of the Employment Agreement will be paid or recovered under the
      relevant provision only if you incur the applicable fees, cost or expenses
      prior to the tenth anniversary of the expiration of the
    Term.

            

    

     

    
      	
              14.  

            	
              Amendment
      Procedures.  The final sentence of Section 16 of the
      Employment Agreement shall be amended and restated in its entirety to read
      as follows:  “Except as specifically provided in Section 7
      thereof, no amendments or modifications to this Agreement may be made
      except in writing signed by the Company (as authorized by the Board or the
      Committee) and the Executive.”

            

    

     

    
      	
              15.  

            	
              “Code”
      Definition.  The definition of “Code” in the Employment
      Agreement will include the regulations thereunder as in effect from time
      to time.

            

    

     

    
      	
              16.  

            	
              Indemnification.  Any
      indemnification payments made to you pursuant to Appendix IV of the
      Employment Agreement will be made to you in a manner that does not cause
      such payments to constitute deferred compensation under Treas. Reg.
      1.409A-1(b)(10) and any successor
thereto.

            

    

     

    
      	
              17.  

            	
              Full Force and
      Effect.  For the avoidance of doubt, except to the extent
      expressly modified by this letter agreement, all terms of the Employment
      Agreement will remain in full force and effect following the date of this
      letter agreement.

            

    

     

    
      	
              18.  

            	
              Governing
      Law.  The validity, interpretation, construction, and
      performance of this letter agreement shall be governed by the laws of the
      State of Illinois, without regard to its choice of laws provisions, for
      contracts made and to be performed wholly in such state; provided, however, that
      your rights to indemnification under paragraph 16 of this letter agreement
      shall be governed by the laws of the State of
  Delaware.

            

    

     

    
      	
              19.  

            	
              Headings.  Headings
      to paragraphs hereof are for convenience of reference only and shall not
      be construed to alter or affect the meaning of any provision of this
      letter agreement.

            

    

     

    
      	
              20.  

            	
              Entire
      Agreement.  This letter agreement, together with the
      Employment Agreement and the appendices attached thereto, contains the
      entire agreement between you and Brunswick concerning the subject matter
      hereof and supersedes all prior agreements, understandings, discussions,
      negotiations and undertakings, whether written or oral, between you and
      Brunswick with respect hereto.  You acknowledge and agree that
      this letter agreement constitutes an amendment to the Employment Agreement
      in respect of your participation and rights to any benefits
      thereunder.  This letter agreement may not be modified or
      amended except by a writing signed by each of the parties
      hereto.

            

    

     

    
      	
              21.  

            	
              Counterparts.  This
      letter agreement may be executed in two or more counterparts, any one of
      which shall be deemed the original without reference to the
      others.

            

    

     

    Intending to be legally bound hereby,
the parties have executed this letter agreement on the dates set forth next to
their names below.                                            

     

    
      
        
          
            
              
                
                  
                    	 [________],
      2008     	 BRUNSWICK
      CORPORATION,
	 	 
	 	by: 
	 
      	 
      
	 
      	
                            Name:

                          
	 
      	
                            Title:

                          

                  

                

              

            

          

        

      

    

     

    
      
        
          
            
              
                	 [________],
      2008     	[                            
      ]
	 	 
	 	 by:
	 
      	 
      

              

            

          

        

      

       

      
        
          
          

        

        
          3exhibit10_8.htm

    Exhibit 10.8

     

    
      Attachment
A

      BRUNSWICK
CORPORATION

      

      SUPPLEMENTAL
PENSION PLAN

      

      (As
Amended and Restated Effective February 3, 2009)

       

      Section
1

       

      GENERAL

       

      1.1 History and
Purpose.  Brunswick Corporation, a Delaware corporation (the
“Company”), previously established the Brunswick Supplemental Pension Plan (the
“Plan”) for eligible employees to provide benefits that, when added to the
benefits payable on their account under the Brunswick Pension Plan for Salaried
Employees (the “Pension Plan”), will equal the benefits which would have been
payable on their account under the Pension Plan but for the limitations imposed
on such benefits by Sections 401(a)(17) and 415 of the Internal Revenue Code of
1986, as amended (the “Code”).

       

      1.2 Effective
Date.  The Plan was originally effective January 1, 1981 and
has been amended from time to time since that date.  The Plan was most
recently amended and restated, generally effective as of January 1, 2009, to
satisfy the requirements of Section 409A of the Code and shall be construed and
interpreted consistent therewith.   The Plan is being further
amended and restated to freeze benefit accruals as of December 31,
2009.  This amendment and restatement of the Plan shall apply to
Participants who terminated employment after December 31, 2004 and who did not
commence benefits under the Pension Plan prior to January 1,
2009.  The benefits of Participants who terminated employment prior to
January 1, 2005 shall be administered in accordance with the terms of the Plan
in effect prior to such date.  The benefits of Participants who
terminated employment after December 31, 2004 and commenced benefits under the
Pension Plan prior to January 1, 2009 shall be administered in accordance with
the special transition rules set forth in Internal Revenue Service Notice
2007-86.

       

      1.3 Freezing of Accruals
December 31, 2009.  Notwithstanding any provision of the Plan
to the contrary, no additional benefits shall accrue under this Plan after
December 31, 2009.

       

      1.4 Definitions.  The
following words and phrases as used herein shall have the following
meaning:

       

      
        	
                (a)  

              	
                Deferred
      Compensation Agreement.  A “Deferred Compensation Agreement”
      means a contract or election form under which an employee defers receipt
      of current compensation (including employment contracts containing
      provisions for deferral of compensation) and under which the Company is
      required to make supplemental payments to the extent that the benefits
      payable to or on account of such employee under the provisions of the
      Pension Plan are reduced by reason of such
  deferral.

              

      

       

      
        	
                (b)  

              	
                Adjusted
      Earnings.  An employee’s “Adjusted Earnings” for any calendar
      year means an amount equal to the sum
of:

              

      

       

      
        	
                (1)  

              	
                The
      employee’s Earnings (as defined in the Pension Plan) for that year without
      regard to any limitations on the dollar amount of earnings set forth in
      the Pension Plan or in Section 401(a)(17) of the Code;
  plus

              

      

       

      
        	
                (2)  

              	
                the
      amount of any compensation deferred by the employee during that year
      pursuant to the terms of a Deferred Compensation
  Agreement.

              

      

       

      
        	
                (c)  

              	
                Change
      in Control.  “Change in Control” of the Company shall have the
      meaning ascribed to such term under Code Section 409A and applicable
      regulations issued thereunder; provided, however, in no event shall an
      acquisition of assets under Treasury Regulation 1.409A-3(i)(5)(vii)
      constitute a change in control event, unless such event is also a sale or
      disposition of all or substantially all of the Company’s
      assets.

              

      

       

      1.5 Plan
Administration.  The authority to control and manage the
operation and administration of the Plan shall be vested in the Human Resource
and Compensation Committee of the Board of Directors of the Company (the
“Committee”).  In controlling and managing the operation and
administration of the Plan, the Committee shall have the power and authority to
interpret and construe the provisions of the Plan, to determine the amount of
benefits and the rights or eligibility of employees or Participants under the
Plan and shall have such other power and authority as may be necessary to
discharge its duties hereunder.

       

      The
Committee may allocate all of any portion of its responsibilities and powers to
any one or more of its members and may delegate all or any part of its
responsibilities and powers to any person or persons selected by
it.  Any such allocation or delegation may be revoked by the Committee
at any time.  Until the Committee takes action to the contrary, the
powers and responsibilities of the Committee shall be delegated to the Vice
President and Chief Human Resources Officer (or his delegate) of the Company,
subject to such direction as may be provided to the Vice President and Chief
Human Resources Officer or his delegate from time to time by the
Committee.

       

      1.6 Source of Benefit
Payments.  The amount of any benefit payable under the Plan
shall be paid from the general revenues of the Company.

       

      1.7 Applicable
Laws.  The Plan shall be construed and administered in
accordance with the laws of the State of Illinois to the extent that such laws
are not preempted by the laws of the United States of America.

       

      1.8 Number.  Where
the context admits, words in the singular shall include the plural and the
plural shall include the singular.

       

      
        
          
          

        

        
          1

          
          

        

        
          
          

        

      

       

      1.9 No Enlargement of Employment
Rights.  Nothing herein contained shall be construed to give
any Participant the right to be retained in the employment of the Company or to
limit the right of the Company to terminate the employment of any Participant at
any time.

       

      1.10 Claims
Procedures.  The claims procedures applicable to claims and
appeals of denied claims under the Pension Plan shall apply to any claims for
benefits under the Plan and appeals of any such denied claims.

       

      1.11 Notices.  Any
notice or document required to be filed with the Committee under the Plan shall
be properly filed if delivered or mailed by registered mail, postage prepaid, to
the Committee, in care of the Company, at its principal executive
offices.  The Committee may, in its discretion, designate another
individual or entity and address for the filing of notices.  Any
notice require under the Plan may be waived by the person entitled to
notice.

       

      1.12 Limitations on
Provisions.  The provisions of the Plan and the benefits
provided hereunder shall be limited as described herein.  Any benefit
payable under the Pension Plan shall be paid solely in accordance with the terms
and conditions of the Pension Plan, and nothing in this Plan shall operate or be
construed in any way to modify, amend, or affect the terms and provisions of the
Pension Plan.

       

      Section
2

       

      PARTICIPATION

       

      Participants
in the Plan shall be:

      

      
        	
                (a)  

              	
                Employee
      Participants:

              

      

       

      
        	
                (1)  

              	
                employees
      whose benefits payable under the Pension Plan, as amended from time to
      time, are limited by reason of application of Sections 401(a)(17) or 415
      of the Code; and

              

      

       

      
        	
                (2)  

              	
                individuals
      described in (1) next above whose employment shall have been terminated by
      reason of retirement or otherwise.

              

      

       

      
        	
                (b)  

              	
                Beneficiary
      Participants:

              

      

       

      
        	
                (1)  

              	
                Subject
      to the provisions of subsection (b)(2), each individual who becomes
      entitled to a benefit under the Pension Plan on account of an employee’s
      or former employee’s death (“Pension Plan Beneficiary”) shall become a
      Participant in the Plan on the date on which such Beneficiary first
      becomes entitled to the benefit if such benefit is limited by reason of
      the application of Sections 401(a)(17) or 415 of the
  Code.

              

      

       

      
        	
                (2)  

              	
                Notwithstanding
      the provisions of subsection (b) (1), a Participant as described in
      subsection (a) may, from time to time, designate a beneficiary
      (“Designated Beneficiary”) to whom the benefits payable under the Plan on
      the Participant’s account will be paid in the event of Participant’s
      death.  If the Participant designates a beneficiary other than
      the Pension Plan Beneficiary, then, in lieu of the Pension Plan
      Beneficiary, the Designated Beneficiary shall become a Participant in the
      Plan at such time as the Designated Beneficiary becomes entitled to such
      benefit.  For purposes, of Section 3, the amount and term of the
      benefit payable to the Designated Beneficiary under the Plan shall be the
      same as if the Pension Plan Beneficiary had been the Designated
      Beneficiary and, to the extent applicable, shall be based on the life or
      life expectancy of the Pension Plan Beneficiary.  A Beneficiary
      designation in accordance with the provisions of this subsection (b) (2)
      shall be filed with the Administrator of the Plan while the Participant is
      alive and shall revoke all prior beneficiary designations filed under this
      Plan.

              

      

       

      Section
3

       

      AMOUNT
AND PAYMENT OF PLAN BENEFITS

       

      3.1 Amount of Plan
Benefits.  The benefit payable under the Plan to a Participant
as of any date shall be in an amount equal to:

       

      
        	
                (a)  

              	
                The
      benefit, expressed in the form of a single life annuity commencing at
      normal retirement date, that the Participant would have been entitled to
      receive under the Pension Plan as of the earlier of (i) December 31, 2009,
      or (ii) the date of the Participant’s termination of employment with the
      Company (or the date the benefit is being determined, if earlier),
      calculated as if the Participant’s Earnings for purposes of the Pension
      Plan were equal to the Participant’s Adjusted Earnings, determined without
      regard to the limitations imposed by Section 415 of the
    Code.

              

      

       

      
        
          
          

        

        
          2

          
          

        

        
          
          

        

      

       

      REDUCED
BY

      

      
        	
                (b)  

              	
                The
      benefit, expressed in the form of a single life annuity commencing at
      normal retirement date, that the Participant is actually entitled to
      receive under the Pension Plan as of that
date.

              

      

       

      The
benefit calculated under the foregoing formula shall be converted to an
actuarial equivalent lump sum value as of the date payments are to commence
under Section 3.2 and paid in monthly installments over a 10 year
period.  For purposes of the foregoing calculation, actuarial
equivalent present value shall be determined using the actuarial factors under
the Pension Plan as in effect on the date of such calculation.

       

      3.2 Payment of Plan
Benefits.  The lump sum benefit calculated under Section 3.1
will be paid to or on the account of the Participant in equal monthly
installments over a 10 year period, with the first installment to be made on the
later of: (i) the first day of the seventh month following the Participant’s
termination of employment, (ii) the first day of the month following the
Participant’s attainment of age 50 and five years of vesting service under the
Pension Plan, or (iii) July 1, 2010.  Notwithstanding the foregoing, a
Participant who terminates employment on or after January 1, 2005 and prior to
January 1, 2009 whose Plan benefits have not commenced prior to January 1, 2009
may elect a different time of payment by completing and submitting an election
form, in accordance with procedures established by the
Committee.  Such election must be submitted no later than December 31,
2008 and shall be irrevocable after such date.

       

      3.3 Payments to
Beneficiaries.  If the Participant dies before payment of Plan
benefits has commenced, any benefits payable to the Participant’s Beneficiary
under the Plan shall be converted to an actuarially equivalent lump sum and paid
in monthly installments over a period of 10 years, beginning on the first day of
the seventh month following the Participant’s death.  If the
Participant dies after payment of Plan benefits has commenced, any benefits
payable to the Participant’s Beneficiary shall be paid at the same time payment
would have been made to the Participant.

       

      3.4 Cash Out of Small
Benefits.  Notwithstanding any provision of the Plan to the
contrary, if the lump sum present value of a Participant’s benefit at the
Participant’s termination of employment is not greater than two times the
limitation then in effect under Code Section 402(g), payment shall be made
solely in the form of a lump sum as of the later of (i) the date that is seven
months after the Participant’s termination of employment, or (ii) July 1,
2010.

       

      3.5 Payment to Persons Under
Legal Disability.  In the event that any amount shall be
payable under this Plan to a Participant under legal or other disability who, in
the opinion of the Committee, is unable to administer such payment, the payments
shall be made to the legal conservator of the estate of such Participant or, if
no such legal conservator shall have been appointed, then to any individual (for
the benefit of such Participant) whom the Committee may from time to time
approve.

       

      3.6 Benefits May Not Be Assigned
or Alienated.  The benefits payable to any Participant under
the Plan may not be subject to any voluntarily or involuntarily assignment,
alienation, sale, transfer, pledge, encumbrance or charge prior to the actual
receipt thereof by the payee; and any attempt to anticipate, alienate, sell,
transfer, assign, pledge, encumber or charge prior to such receipt shall be
void; nor shall the Plan be in any manner liable for or subject to the debts,
contracts, liabilities, engagements or torts of any person entitled to any
benefit hereunder.  Notwithstanding the foregoing, vested Plan
benefits may be transferred to an alternate payee (within the meaning of Code
Section 414(p)(8)) pursuant to a domestic relations order that the Committee
determines satisfies the criteria set forth in paragraphs (1), (2), and (3) of
Code Section 414(p) (a “DRO”).  Any benefits payable to an alternate
payee under the Plan will be paid in an actuarial equivalent lump sum payment as
soon as practicable after the Committee determines the order satisfies the
requirements of a DRO.

       

      3.7 Withholding.  Notwithstanding
any provision of the Plan to the contrary, the Company may reduce amounts to be
paid to the Participant under this Plan, or may reduce any other forms of
compensation to the Participant, to comply with any applicable Federal, state or
local tax withholding requirements.

       

      3.8 Acceleration of
Benefits.  If a Participant’s termination of employment occurs
within the two year period following a Change in Control, payment shall be made
in the form of a single lump sum payment, as of the first day of the seventh
month following such termination of employment.

       

      Section
4

       

      AMENDMENT
AND TERMINATION

       

      4.1 Amendment and
Termination.  The Company reserves the right to amend or
terminate the Plan by action of its Board of Directors; provided, however, that
no such amendment or termination of the Plan and no amendment or termination of
the Pension Plan shall:

       

      
        	
                (a)  

              	
                reduce
      or impair the interests of Participants in benefits being paid under the
      Plan as at the date of amendment or termination, as the case may be;
      or

              

      

       

      
        	
                (b)  

              	
                reduce
      the aggregate amount of benefits subsequently payable to or on account of
      any employee under this Plan and the Pension Plan to an amount which is
      less than the amount that would have been so payable if the employee had
      retired immediately prior to such amendment or termination, as the case
      may be.

              

      

       

      4.2 Successors.  Subject
to the provisions of subsection 4.1, this Plan shall be binding upon any
assignee or successor in interest to the Company, whether by merger,
consolidation or the sale of substantially all of the Company’s
assets.

       

      
        
          
          

        

        
          3

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