Document:

Exhibit
10.51.1

IMS HEALTH INCORPORATED

EXECUTIVE PENSION PLAN

As Amended and Restated Effective as of January 1,
2005

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INTRODUCTION

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 1 - DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.1

  	
  “Actuarial Equivalent Value”

  	
   

  	
  1

  
	
  1.2

  	
  “Affiliated Employer”

  	
   

  	
  2

  
	
  1.3

  	
  “Average Final Compensation”

  	
   

  	
  2

  
	
  1.4

  	
  “Basic Disability Plan”

  	
   

  	
  2

  
	
  1.5

  	
  “Basic Disability Plan Benefit”

  	
   

  	
  2

  
	
  1.6

  	
  “Basic Plan”

  	
   

  	
  2

  
	
  1.7

  	
  “Basic Plan Benefit”

  	
   

  	
  3

  
	
  1.8

  	
  “Board”

  	
   

  	
  3

  
	
  1.9

  	
  “Cause”

  	
   

  	
  3

  
	
  1.10

  	
  “CEO”

  	
   

  	
  4

  
	
  1.11

  	
  “Change in Control”

  	
   

  	
  4

  
	
  1.12

  	
  “Change in Control Agreement”

  	
   

  	
  6

  
	
  1.13

  	
  “Code”

  	
   

  	
  7

  
	
  1.14

  	
  “Code”

  	
   

  	
  7

  
	
  1.15

  	
  “Company”

  	
   

  	
  7

  
	
  1.16

  	
  “Compensation”

  	
   

  	
  7

  
	
  1.17

  	
  “Covered Earnings”

  	
   

  	
  7

  
	
  1.18

  	
  “Deferred Vested Benefit”

  	
   

  	
  8

  
	
  1.19

  	
  “Disability” or “Disabled”

  	
   

  	
  8

  
	
  1.20

  	
  “Disability Benefits”

  	
   

  	
  8

  
	
  1.21

  	
  “Effective Date”

  	
   

  	
  8

  
	
  1.22

  	
  “Former Member”

  	
   

  	
  8

  
	
  1.23

  	
  “Good Reason”

  	
   

  	
  8

  
	
  1.24

  	
  “Lump Sum Election”

  	
   

  	
  10

  
	
  1.25

  	
  “Member”

  	
   

  	
  10

  
	
  1.26

  	
  “Other Disability Income”

  	
   

  	
  11

  
	
  1.27

  	
  “Other Retirement Income”

  	
   

  	
  11

  
	
  1.28

  	
  “Plan”

  	
   

  	
  11

  
	
  1.29

  	
  “Plan Administrator”

  	
   

  	
  12

  
	
  1.30

  	
  “Potential Change in Control”

  	
   

  	
  12

  
	
  1.31

  	
  “Regulations”

  	
   

  	
  12

  
	
  1.32

  	
  “Retirement”

  	
   

  	
  13

  
	
  1.33

  	
  “Retirement Benefits”

  	
   

  	
  13

  
	
  1.34

  	
  “Separation from Service”

  	
   

  	
  12

  
	
  1.35

  	
  “Service”

  	
   

  	
  13

  
	
  1.36

  	
  “Specfied Employee”

  	
   

  	
  14

  
	
  1.37

  	
  “Surviving Spouse”

  	
   

  	
  15

  
	
  1.38

  	
  “Surviving Spouse’s Benefits”

  	
   

  	
  15

  
	
  1.39

  	
  “Vested Former Member”

  	
   

  	
  15

  
						

 

 i
 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 2 - PARTICIPATION

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.1

  	
  Commencement of Participation

  	
   

  	
  15

  
	
  2.2

  	
  Termination of Participation

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3 - AMOUNT AND FORM OF BENEFITS

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.1

  	
  Retirement Benefits

  	
   

  	
  16

  
	
  3.2

  	
  Deferred Vested Benefit

  	
   

  	
  17

  
	
  3.3

  	
  Time and Form of
  Payment

  	
   

  	
  19

  
	
  3.4

  	
  Lump Sum Election

  	
   

  	
  25

  
	
  3.5

  	
  Cessation of Benefits

  	
   

  	
  28

  
	
  3.6

  	
  Notification of Cessation of Benefits

  	
   

  	
  30

  
	
  3.7

  	
  Repayment of Benefits Paid as Lump Sum

  	
   

  	
  30

  
	
  3.8

  	
  Change in Control

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 4 - DISABILITY BENEFITS

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.1

  	
  Eligibility

  	
   

  	
  33

  
	
  4.2

  	
  Amount

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5 - SURVIVING SPOUSE’S BENEFITS

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.1

  	
  Death Prior to Benefit Commencement

  	
   

  	
  33

  
	
  5.2

  	
  Death On or After Benefit Commencement

  	
   

  	
  34

  
	
  5.3

  	
  Commencement of Surviving Spouse’s Benefit

  	
   

  	
  34

  
	
  5.4

  	
  Lump Sum Payment

  	
   

  	
  35

  
	
  5.5

  	
  Reduction

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECTION 6 - PLAN ADMINISTRATOR

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.1

  	
  Duties and Authority

  	
   

  	
  36

  
	
  6.2

  	
  Presentation of Claims

  	
   

  	
  36

  
	
  6.3

  	
  Claims Denial Notification

  	
   

  	
  37

  
	
  6.4

  	
  Claims Review Procedure

  	
   

  	
  37

  
	
  6.5

  	
  Timing

  	
   

  	
  38

  
	
  6.6

  	
  Final Decision

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
							

 

 ii
 

 

	
  SECTION 7 - MISCELLANEOUS

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
  7.1

  	
  Amendment; Suspension

  	
   

  	
  39

  
	
  7.2

  	
  Termination

  	
   

  	
  40

  
	
  7.3

  	
  No Employment Rights

  	
   

  	
  42

  
	
  7.4

  	
  Unfunded Status

  	
   

  	
  42

  
	
  7.5

  	
  Arbitration

  	
   

  	
  42

  
	
  7.6

  	
  No Alienation

  	
   

  	
  43

  
	
  7.7

  	
  Withholding

  	
   

  	
  43

  
	
  7.8

  	
  Governing Law

  	
   

  	
  43

  
	
  7.9

  	
  Successors

  	
   

  	
  44

  
	
  7.10

  	
  Integration

  	
   

  	
  44

  

 

 

 iii

 

IMS HEALTH INCORPORATED

EXECUTIVE PENSION PLAN

As Amended and Restated Effective as of January 1,
2005

INTRODUCTION

Effective as of April 17,
2001, the IMS Health Incorporated Executive Pension Plan (the “Plan”) was
established to provide a means of ensuring the payment of a competitive level
of retirement income and disability and survivor benefits, and thereby attract,
retain and motivate a select group of executives of IMS Health Incorporated and
its affiliated employers.  This document
represents a complete restatement of the Plan effective as of January 1, 2005.

 The provisions of this amendment
and restatement of the Plan shall apply to Members of the Plan who have not
retired or terminated employment with the Company as of January 1, 2005.  The rights to benefits, if any, of any Former
Member or Vested Former Member who retired or otherwise terminated employment
before January 1, 2005, together with the amount of such benefits, shall
continue to be governed by the provisions of the Plan in effect as of the date
of such retirement or termination of employment.

SECTION 1-
DEFINITIONS

1.1                                 “Actuarial
Equivalent Value” shall mean a benefit of equivalent value computed on the
basis of the mortality table and interest rate used to calculate accrued
benefits under the Basic Plan.

 

1.2                                 “Affiliated
Employer” shall mean an entity affiliated with the Company.

1.3                                 “Average
Final Compensation” shall mean a Member’s average annual Compensation
during the five consecutive 12-month periods in the last ten consecutive 12-month
periods of his or her Service (or during the total number of consecutive
12-month periods if fewer than five), immediately prior to the month following
the Member’s termination of employment with the Company or an Affiliated
Employer or, if earlier, removal from participation under this Plan, affording
the highest such Average Final Compensation. 
If actual monthly Compensation for any month during the 120-month
computational period is unavailable, Compensation for such month shall be
determined by dividing the Member’s annual rate of base pay in the month
preceding such unavailable month by 12.

1.4                                 “Basic
Disability Plan” shall mean as to any Member the long-term disability plan
of the Company or an Affiliated Employer pursuant to which long-term disability
benefits are payable to such Member.

1.5                                 “Basic
Disability Plan Benefit” shall mean the amount of benefits payable to a
Member from the Basic Disability Plan.

1.6                                 “Basic
Plan” shall mean as to any Member or Vested Former Member the defined
benefit pension plan of the Company or an Affiliated Employer intended to meet
the requirements of Code Section 401(a) pursuant to which retirement benefits
are payable to such Member or Vested Former Member or to the Surviving Spouse
or designated beneficiary of a deceased Member or Vested Former Member.

 

 2
 

1.7                                 “Basic
Plan Benefit” shall mean the amount of benefits payable from the Basic Plan
to a Member or Vested Former Member.

1.8                                 “Board”
shall mean the Board of Directors of IMS Health Incorporated, except that any
action authorized to be taken by the Board hereunder may also be taken by a
duly authorized committee of the Board or its duly authorized delegees.

1.9                                 “Cause”.  A Member shall not be deemed to have been
terminated for “Cause” under this Plan unless such Member shall have been
terminated for “Cause” under the terms of such Member’s employment agreement or
Change in Control Agreement with the Company, if any.  If no such employment agreement or Change in
Control Agreement containing a definition of “Cause” shall be in effect, for
purposes of this Plan “Cause” shall mean a Member’s:

(a)                                  willful and continued failure to substantially
perform his or her duties (other than any such failure resulting from
incapacity due to physical or mental illness or Disability or any failure after
the issuance of a notice of termination by the Member for Good Reason) which
failure is demonstrably and materially damaging to the financial condition or
reputation of the Company and/or its Affiliated Employers, and which failure
continues more than 48 hours after a written demand for substantial performance
is delivered to the Member by the Board, which demand specifically identifies
the manner in which the Board believes that the Member has not substantially
performed his or her duties; or

 3
 

(b)                                 the willful engaging by the Member in conduct which
is demonstrably and materially injurious to the Company, monetarily or
otherwise.

No act, or failure to act, on the
part of the Member shall be deemed “willful” unless done, or omitted to be
done, by the Member not in good faith and without reasonable belief that his or
her action or omission was in the best interest of the Company.  Notwithstanding the foregoing, the Member
shall not be deemed to have been terminated for Cause unless and until there
shall have been delivered to the Member a copy of the resolution duly adopted
by the affirmative vote of not less than three-quarters (3/4) of the entire
membership of the Board at a meeting of the Board (after reasonable notice to
the Member and an opportunity for the Member, together with the Member’s
counsel, to be heard before the Board) finding that, in the good faith opinion
of the Board, the Member was guilty of conduct set forth above in this
definition and specifying the particulars thereof in detail.

1.10                           “CEO” shall mean the Chief Executive Officer of the Company. 

1.11                           “Change
in Control”.  If a “Change in Control” shall have occurred
or shall be deemed to have occurred under the terms of a Member’s or Vested
Former Member’s Change in Control Agreement or employment agreement with the
Company, if any, then a “Change in Control” shall be deemed to have occurred
under this Plan.   Otherwise a “Change in
Control” shall be deemed to have occurred if:

 4
 

(a)                                  any “Person” as such term is used for purposes
of  Sections 13(d) or 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) (other than
the Company, any trustee or other fiduciary holding securities under an
employee benefit plan of the Company, or any company owned, directly or
indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company), becomes the “Beneficial
Owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly,
of securities of the Company representing 20% or more of the combined voting
power of the Company’s then outstanding securities;

(b)                                 during any period of 24 months (not including any
period prior to the Effective Date), individuals who at the beginning of such
period constitute the Board, and any new director (other than (i) a director
nominated by a Person who has entered into an agreement with the Company to
effect a transaction described in Sections 1.11(a), (c), or (d) hereof, (ii) a
director nominated by any Person (including the Company) who publicly announces
an intention to take or to consider taking actions (including, but not limited
to, an actual or threatened proxy contest) which if consummated would
constitute a Change in Control, or (iii) a director nominated by any Person who
is the Beneficial Owner, directly or indirectly, of securities of the Company
representing 10% or more of the combined voting power of the Company’s
securities) whose election by the Board or nomination for election by the
Company’s stockholders was 

 5
 

approved in advance by a vote of at
least two-thirds (2/3) of the directors then still in office who either were
directors at the beginning of the period or whose election or nomination for
election was previously so approved, cease for any reason to constitute at
least a majority thereof;

(c)                                  any transaction (or series of transactions) is
consummated under which the Company is merged or consolidated with any other
company, other than a merger or consolidation (i) which would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity) more than 66 2/3% of the
combined voting power of the voting securities of the Company or such surviving
entity outstanding immediately after such merger or consolidation, and (ii)
after which no “Person” holds 20% or more of the combined voting power of the
then outstanding securities of the Company or such surviving entity;

(d)                                 a sale or disposition by the Company of all or
substantially all of the Company’s assets is consummated or the stockholders of
the Company approve a plan of complete liquidation of the Company; or

(e)                                  the Board adopts a resolution to the effect that, for
purposes of this Plan, a Change in Control has occurred.

 1.12                        “Change
in Control Agreement” shall mean any
written agreement in effect between any Member or Former Member or Vested
Former Member and the 

 6
 

Company or an Affiliated Employer pursuant to which benefits
may be payable to such Member or Former Member or Vested Former Member in
connection with a Change in Control.

1.13                           “Code” shall mean the Internal Revenue Code of 1986, as
amended from time to time.

1.14                           “Committee” shall mean the Compensation and Benefits Committee
of the Board or any successor thereto.

1.15                           “Company” shall mean IMS Health Incorporated.

1.16                           “Compensation” shall
mean base salary, annual bonuses, commissions, overtime and shift pay, in each
case prior to reductions for elective contributions under Sections 401(k), 125
and 132(f)(4) of the Code and deferred compensation under any nonqualified
deferred compensation plan. 
Notwithstanding the foregoing, Compensation shall exclude severance pay
(including, without limitation, severance pay under the Company’s Employee
Protection Plan), stay-on bonuses, long-term bonuses, retirement income,
change-in-control payments, contingent payments, amounts paid under this Plan
(other than Disability Benefits) or any other retirement plan or deferred
compensation plan, income derived from stock options, stock appreciation rights
and other equity-based compensation and other forms of special remuneration.

1.17                           “Covered
Earnings” shall mean a Member’s Compensation in the 12 months immediately
preceding the onset of the Member’s Disability.

 7
 

 1.18                        “Deferred
Vested Benefit” shall mean the benefits
described in Section 3.2(b) hereof

 1.19                        “Disability”
or “Disabled” shall mean disability or
disabled for purposes of the Basic Disability Plan.

 1.20                        “Disability
Benefits” shall mean the benefits provided as described in Section 4.2
hereof.

 1.21                        “Effective
Date” shall mean April 17, 2001. The
effective date of this amendment and restatement of the Plan shall mean January
1, 2005.

 1.22                        “Former
Member” shall mean (a) a Member whose
employment with the Company or an Affiliated Employer terminates before he or
she has completed five or more years of Service, or (b) a Member who was
removed from participation in the Plan, in accordance with Section 2.2 hereof,
before he or she has completed five or more years of Service.

 1.23                        “Good
Reason”.  If a Member shall have terminated employment
for “Good Reason” under the terms of such Member’s Change in Control Agreement
or employment agreement with the Company, if any, then such Member shall be
deemed to have terminated employment for “Good Reason” under this Plan.  Otherwise “Good Reason” shall mean, without
the Member’s express written consent, the occurrence of any of the following
circumstances unless, such circumstances are fully corrected prior to the date
of termination specified in the notice of termination given in respect thereof:

 8
 

(a)                                  the assignment to the Member of any duties
inconsistent with the Member’s position in the Company, or an adverse
alteration in the nature or status of the Member’s responsibilities or the
conditions of the Member’s employment;

(b)                                 a reduction by the Company in the Member’s annual
base salary, target bonus or perquisites except for across-the-board perquisite
reductions similarly affecting all senior executives of the Company and all
senior executives of any Person, as such term is used for purposes of Sections
13(d) or 14(d) of the Securities Exchange Act of 1934, as amended, in control
of the Company;

(c)                                  the relocation of the principal place of the Member’s
employment to a location more than 50 miles from the location of such place of
employment; for this purpose, required travel on the Company’s business will
not constitute a relocation so long as the extent of such travel is
substantially consistent with the Member’s customary business travel
obligations;

(d)                                 the failure by the Company to pay to the Member any
portion of the Member’s compensation or to pay to the Member any portion of an
installment of deferred compensation under any deferred compensation program of
the Company within seven days of the date such compensation is due;

 9
 

(e)                                  the failure by the Company to continue in effect any
material compensation or benefit plan in which the Member participated unless
an equitable arrangement (embodied in an ongoing substitute or alternative
plan) has been made with respect to such plan, or the failure by the Company to
continue the Member’s participation therein (or in such substitute or
alternative plan) on a basis not materially less favorable, both in terms of
the amounts of benefits provided and the level of the Member’s participation
relative to other participants;

(f)                                    the failure of the Company to obtain a satisfactory
agreement from any successor to the Company to fully assume the Company’s
obligations and to perform under this Plan, as contemplated in Section 7.9
hereof;

(g)                                 with respect to any Member who is a party to an
employment agreement or a Change in Control Agreement, any purported
termination of such Member’s employment that is not effected pursuant to the
notice provisions, if any, in such Member’s employment agreement or Change in
Control Agreement.

 1.24                        “Lump Sum Election” shall mean an election to receive all or a portion of the benefits payable
hereunder in a lump sum pursuant to Section 3.4 hereof.

 1.25                        “Member”
shall mean an employee of the Company or an Affiliated Employer who becomes a
participant in the Plan pursuant to Section 2, but excludes any Former Member
or Vested Former Member.

 

 10

 1.26                        “Other Disability Income” shall mean (i) the disability insurance benefit that
the Member is entitled to receive under the Federal Social Security Act while
he or she is receiving the Basic Disability Plan Benefit and (ii) the
disability income payable to a Member from any supplemental executive
disability plan of the Company or any Affiliated Employer or from any other
contract, agreement or other arrangement with the Company or an Affiliated
Employer (excluding any Basic Disability Plan).

 1.27                        “Other Retirement Income” shall mean the retirement income payable to a Member or Vested
Former Member from any ‘excess benefit plan’ as that term is defined in Section
3(36) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
(increased by the amount of benefits, if any, payable from the Pension Benefit
Equalization Plan and/or the Supplemental Executive Benefit Plan of The Dun
& Bradstreet Corporation), any plan described in Section 201(2) of ERISA,
and any other contract, agreement or other arrangement providing a defined
pension benefit or defined contribution retirement benefit, in any case,
maintained or entered into with the Company or an Affiliated Employer
(excluding this Plan, any Basic Plan, any defined contribution plan intended to
meet the requirements of Code Section 401(a) and any elective plan of deferred
compensation).

 1.28                        “Plan”
shall mean this IMS Health Incorporated Executive Pension Plan, as embodied
herein, and any amendments thereto.

 11
 

 1.29                        “Plan Administrator” shall mean the Company, except that any action
authorized to be taken by the Plan Administrator hereunder may also be taken by
any committee or person(s) duly authorized by the Board or the duly authorized
delegate of such duly authorized committee or person(s).

 1.30                        “Potential Change in Control”.  If a “Potential
Change in Control” shall have occurred or shall be deemed to have occurred
under the terms of a Member’s Change in Control Agreement or employment
agreement with the Company, if any, then a “Potential Change in Control” shall
be deemed to have occurred under this Plan. 
Otherwise a “Potential Change in Control” shall be deemed to have
occurred if:

(a)                                  the Company enters into an agreement, the
consummation of which would result in the occurrence of a Change in Control;

(b)                                 any Person (including the Company), as defined in
Section 1.11(a) hereof, publicly announces an intention to take or to consider
taking actions which if consummated would constitute a Change in Control; or

(c)                                  the Board adopts a resolution to the effect that, for
purposes of this Plan, a Potential Change in Control has occurred

 1.31                        “Regulations” shall mean proposed and
final Treasury Regulations, as the same may be amended from time to time.

 12
 

 1.32                          “Retirement” shall mean the termination of a Member’s or Vested Former Member’s
employment with the Company or an Affiliated Employer other than by reason of
death or Disability after attaining age 65 and completing five years of Service
or if Disability Benefits have been paid under the Plan to a Member or Vested
Former Member, the later of the cessation of the payment of such Disability
Benefits or the Member’s or Vested Former Member’s attainment of age 55.  In determining whether age 65 has been
attained under this definition, there shall be included as years of age the
number of additional years credited as “age” for purposes of the Plan to the
Member or Vested Former Member under this Plan, a then-effective employment
agreement between the Company and such person, a then-effective Change in
Control Agreement between the Company and such Person, or otherwise
approved by the Committee.

 1.33                        “Retirement Benefits” shall mean the benefits described in Section 3.1(b)
hereof.

 1.34                        “Separation from Service” shall mean
termination of employment with the Company and any Affiliated Employer.  Whether a Member or Vested Former Member has
had a Separation of Service shall be determined by the Plan Administrator on
the basis of all relevant facts and circumstances and with reference to
Regulations Section 1.409A-1(h).

 1.35                        “Service”
shall mean a Member’s service defined as Vesting Service in the Basic Plan,
which is taken into account for vesting purposes thereunder, except that (a)
Service will also include that period of time during which the Member is
receiving Disability Benefits under this Plan; (b) if a Member was employed by
a

 13
 

company acquired by the Company or an Affiliated Employer
after the Effective Date, such Member’s service with that company prior to the
date of acquisition will not constitute Service hereunder unless otherwise
approved by the Committee; (c) upon commencement of participation hereunder in
accordance with Section 2.1 hereof, the Committee may limit any service
otherwise to constitute Service hereunder with respect to periods prior to the
date of participation in the Plan; (d) no service of a Former Member or Vested
Former Member during any period after removal from participation under Section
2.2 shall constitute Service for purposes of the Plan; and (e) service prior to
the date an individual becomes a Member shall initially not be counted
for purposes of determining the amount of the
Member’s Retirement Benefit pursuant to Section 3.1(b)(i) or the Member’s
Deferred Vested Benefit pursuant to Section 3.2(b)(i), but for such purposes
shall be deemed to accrue at the rate of 20% of such prior service for each
year of Service completed after such individual becomes a Member until 100%
accrued.  The foregoing notwithstanding,
there shall be included as Service for all purposes under the Plan the number
of additional years (or other additional period) credited as “service” for
purposes of the Plan to the Member or Former Member or Vested Former Member
under this Plan, an employment agreement between the Company or an Affiliated
Employer and such person or a Change in Control Agreement in effect at the time
of such person’s termination of employment, or otherwise approved by the
Committee.

 1.36                        “Specified Employee” shall mean an
employee who satisfies the requirements for being designated a “key employee”
under Section 416(i)(1)(A)(i), (ii) or (iii) of

 14
 

the
Code without regard to Section 416(i)(5) of the Code at any time during a
calendar year, in which case such employee shall be considered a Specified
Employee for the twelve-month period beginning on the first day of the fourth
month immediately following the end of such calendar year.

 1.37                        “Surviving Spouse” shall mean the spouse of a deceased Member or Vested Former Member to whom
such Member or Vested Former Member is married under applicable state law
immediately preceding such Member or Vested Former Member’s death.

 1.38                        “Surviving Spouse’s Benefits” shall mean the benefits described in Section 5
hereof.

 1.39                        “Vested Former Member” shall mean (a) a Member whose employment with the
Company or an Affiliated Employer terminates on or after the date on which he
or she has completed five or more years of Service, or (b) a Member who was
removed from participation in the Plan, in accordance with Section 2.2 hereof,
on or after the date on which he or she has completed five or more years of
Service.

SECTION 2-
PARTICIPATION

 2.1                              Commencement of Participation.  Such key
executives of the Company and its Affiliated Employers as are designated by the
CEO in writing and approved by the Committee shall participate in the Plan as
of a date determined by the Committee.

 15
 

 2.2                              Termination of Participation.  A Member’s
participation in the Plan shall terminate upon termination of his or her
employment with the Company or any Affiliated Employer. Prior to termination of
employment, a Member may be removed, upon written notice by the CEO, and as
approved by the Committee from further participation in the Plan.  As of the date of termination or removal, no
further benefits shall accrue to such individual hereunder.

SECTION 3
- AMOUNT AND FORM OF BENEFITS

 3.1                              Retirement Benefits

(a)                                  Eligibility.   Upon the Retirement of a Member
or Vested Former Member from the Company or an Affiliated Employer, he or she
shall be entitled to the Retirement Benefit described in Section 3.1(b) hereof,
payable in the form specified in Section 3.3.

(b)                                 Amount.  The Retirement Benefit of a Member or Vested
Former Member shall be an annual benefit equal to the difference between (i)
and the sum of (ii) and (iii) where:

(i)                                     is 2.5% of his or her Average Final Compensation
multiplied by the number of his or her years of Service not in excess of
fifteen years, plus 1.5% of such Average Final Compensation multiplied by the
number of his or her years of Service over fifteen but not in excess of thirty
years;

 16
 

(ii)                                  is the Basic Plan Benefit payable to the Member or
Vested Former Member as of the date of his or her Retirement expressed in the
form of an annual life annuity, or, if the Basic Plan Benefit becomes payable
after the Member’s or Vested Former Member’s Retirement, the Actuarial
Equivalent Value of the Basic Plan Benefit payable in the form of an annual
life annuity as of such date, regardless of whether such date precedes the
earliest possible payment date under the terms of the Basic Plan; and

(iii)                               is the Other Retirement Income payable to the Member
or Vested Former Member as of the date of his or her Retirement expressed in
the form of an annual life annuity, or, if the Other Retirement Income becomes
payable after the Member’s or Vested Former Member’s Retirement, the Actuarial
Equivalent Value of the Other Retirement Income payable in the form of an
annual life annuity as of such date, regardless of whether such date precedes
the earliest possible payment date under the terms of the appropriate
retirement arrangement.

 3.2                              Deferred Vested Benefit.

(a)                                  Eligibility.  Each Member and Vested Former
Member who has completed five or more years of Service and whose employment
with the Company or an Affiliated Employer terminates prior to Retirement, for
a reason other than Cause, death or Disability shall be entitled to the
Deferred

 17
 

Vested Benefit described in Section 3.2(b) hereof, payable
in the form specified in Section 3.3.

(b)                                 Amount.  The Deferred Vested Benefit of a Member or
Vested Former Member who terminates and who meets the eligibility requirements
of Section 3.2(a) shall be an annual benefit equal to the difference between
(i) and the sum of (ii) and (iii), where:

(i)                                     is 2.5% of his or her Average Final Compensation,
multiplied by the number of his or her years of Service not in excess of
fifteen, plus 1.5% of such Average Final Compensation multiplied by the number
of his or her years of Service over fifteen, but not in excess of thirty years;

(ii)                                  is the Basic Plan Benefit payable to the Member or
Vested Former Member as of the date his or her Deferred Vested Benefit
commences expressed in the form of an annual life annuity, or, if the Basic
Plan Benefit becomes payable after the Member’s or Vested Former Member’s
Deferred Vested Benefit commences, the Actuarial Equivalent Value of the Basic
Plan Benefit payable in the form of an annual life annuity as of such date,
regardless of whether such date precedes the earliest possible payment date
under the terms of the Basic Plan; and

(iii)                               is the Other Retirement Income payable to the Member
or Vested Former Member as of the date his or her Deferred Vested Benefit
commences expressed in the form of an annual life annuity, or, if the Other
Retirement Income becomes payable after the Member’s or Vested Former Member’s
Deferred Vested Benefit

 18
 

commences, the Actuarial Equivalent Value of the Other
Retirement Income payable in the form of an annual life annuity as of such
date, regardless of whether such date precedes the earliest possible payment
date under the terms of the appropriate retirement arrangement.

 3.3                              Time and Form of Payment.

(a)                                  Except as provided under Section 3.3(b) or Section
3.3(c), the Retirement Benefit or Deferred Vested Benefit under this Plan, as
the case may be, shall be payable in monthly installments in the form of a
straight life annuity and without regard to any optional form of benefits
elected under the Basic Plan.  Payments
shall commence as of the first day of the calendar month coinciding with or
next following (i) the earlier of the date the Member or Vested Former Member
attains age 65 or the date of the Member’s or Vested Former Member’s
Retirement, in the case of Retirement Benefits or (ii) the later of the date
the Member or Vested Former Member attains age 55 or terminates employment, in
the case of Deferred Vested Benefits.

(1)                                  Anything in this Plan to the contrary
notwithstanding, the Deferred Vested Benefit payable to a Member or Vested
Former Member

 19
 

who terminates employment prior to having attained age 55
shall be the Actuarial Equivalent Value of the Deferred Vested Benefit
otherwise payable upon such Member’s or Vested Former Member’s attainment of
age 65, reduced for commencement on the date of such  Member’s or Vested Former Member’s attainment
of age 55.

(2)                                  Anything in this Plan to the contrary
notwithstanding, the Deferred Vested Benefit payable to a Member or Vested
Former Member whose employment has been terminated by the Company without Cause
before such Member or Vested Former Member has attained age 55 or the Deferred
Vested Benefit payable to a Member or Vested Former Member who terminates
employment for Good Reason before such Member or Vested Former Member has
attained age 55 shall be reduced by 20% if such Member or Vested Former Member
had not completed ten years of Service as of the date of termination;
otherwise, by 10% if such Member or Vested Former Member had completed ten
years of Service as of the date of termination.

(3)                                  Anything in this Plan to the contrary
notwithstanding, the Deferred Vested Benefit payable to a Member or Vested
Former Member whose  termination of
employment occurs after such Member or Vested Former Member has attained age 55
but prior to such Member or Vested Former Member having completed 10 years of

 20
 

Service shall be reduced by 2% for each 12-month period that
such Member’s or Vested Former Member’s termination of employment precedes such
Member’s or Vested Former Member’s attainment of age 65.

(4)                                  Anything in this Plan to the contrary notwithstanding,  the Deferred Vested Benefit payable to a
Member or Vested Former Member whose 
termination of employment occurs after such Member or Vested Former
Member has attained age 55 and completed 10 years of Service shall be reduced
by 2% for each 12-month period that such Member’s or Vested Former Member’s
termination of employment precedes such Member’s or Vested Former Member’s
attainment of age 60.  A Member or Vested
Former Member whose termination of employment occurs after such Member or Vested
Former Member has attained age 60 and 
completed 10 years of Service shall be paid 100% of such Member’s or
Vested Former Member’s Deferred Vested Benefit.

(5)                                   For purposes of calculating any Deferred Vested Benefit that is reduced in
accordance with paragraphs (2), (3) or (4) of this Section 3.3(a), an
interpolated percentage shall be used to calculate the percentage reduction in
such Deferred Vested Benefit for any period of fewer than 12 months.

 21
 

(b)                                 If a Member or Vested Former Member has made a Lump
Sum Election pursuant to Section 3.4, the Retirement Benefit or Deferred Vested
Benefit under this Plan, as the case may be, shall be payable in the form or
combination of forms of payment elected pursuant to such Lump Sum Election
under Section 3.4 and without regard to any optional form of benefits elected
under the Basic Plan.  Any portion of the
benefits hereunder payable in a lump sum shall be paid on the first day
of the calendar month next following the calendar month in which occurs (i) the earlier of the date the Member or Vested
Former Member attains age 65 or the date of the Member’s or Vested Former
Member’s Retirement, in the case of Retirement Benefits or (ii) the later of
the date the Member or Vested Former Member attains age 55 or terminates
employment, in the case of Deferred Vested Benefits.

(c)                                  Notwithstanding any Lump Sum Election made (or not
made) under Section 3.4, if the lump sum value, determined in the same manner
as provided under Section 3.4(a), of a Member’s or Vested Former Member’s
Retirement or Deferred Vested Benefit is $10,000 or less at the time such
benefit is payable under this Plan, such benefit shall be payable as a lump sum
at the time provided in Section 3.3(b) provided that the benefits
payable to or on behalf of such Member under all similar arrangements that
would constitute a nonqualified deferred compensation plan under the
Regulations are being paid at the same time.

 22
 

(d)                                 Anything
in this Plan to the contrary notwithstanding, payment
to any Specified Employee upon Separation from Service shall not be made before
the date that is six months after the date of Separation from Service (or, if
earlier, the date of death of such Specified Employee). Any payment due within
such six-month period will be adjusted to reflect the deferred payment date by
multiplying the payment by the product of the six-month CMT Treasury Bill
annualized yield rate as published by the U.S. Treasury for the date on which
such payment would have been made but for the delay multiplied by a fraction,
the numerator of which is the number of days by which such payment was delayed
and the denominator of which is 365. In the event such Specified Employee’s
Retirement Benefit or Deferred Vested Benefit is paid in the form of an
annuity, the adjusted annuity payments to which such Specified Employee would
otherwise be entitled during such six months shall be accumulated and paid on
the first annuity payment date of the seventh month following such Specified
Employee’s Separation from Service.  In
the event such Specified Employee has elected payment of all or part of his or
her Retirement Benefit or Deferred Vested Benefit in the form of a lump sum,
the adjusted lump sum payment shall be made at the beginning of the seventh
month following such Specified Employee’s Separation from Service.  The six-month delay in payment described
herein shall not apply, however, to any payment made under the circumstances
described in Section 3.3 (e).

 

 23

(e)                                  The
provisions of Sections 3.3(a), (b) and (d) to the contrary notwithstanding, a
payment to or on behalf of a Member or Vested Former Member shall be
accelerated under each of the following circumstances:

(i)                                     if
payment is required to be made to an individual other than the Member or Vested
Former Member to fulfill a domestic relations order as defined in Section
414(p)(1)(B) of the Code; or

(ii)                                  if
payment is necessary to satisfy requirements established pursuant to a written
determination by the Office of Government Ethics that:  (A) divestiture of the financial interest or
termination of the financial arrangement is reasonably necessary to comply with
any Federal conflict of interest statute, regulation, rule or executive order
(including Section 208 of Title 18, United States Code), or is requested by a
congressional committee as a condition of confirmation; and (B) specifies the
financial interest to be divested or terminated.

(f)                                    The
provisions of Sections 3.3(a) and (b) to the contrary notwithstanding, a
payment to a Member or Vested Former Member (or his or her Surviving Spouse)
may be delayed to a date after the designated Benefit Payment Date if
calculation of the amount of the payment is not administratively practicable
due to events beyond the control of the Member or Vested Former Member (or his
or her Surviving Spouse) and 

 24
 

such delay is for reasons
that are commercially reasonable, provided that payment is made as soon as
payment is administratively practicable.

 3.4                              Lump Sum Election.

(a)                                  A Member or Vested Former Member may elect to receive
all, none, or a specified portion, as provided in Section 3.4(e), of his or her
Retirement Benefit or Deferred Vested Benefit under the Plan as a lump sum and
to receive any balance of such benefit in the form of an annuity; provided that
any such Lump Sum Election shall be effective for purposes of this Plan only if
the conditions of Section 3.4(b), (c) or (d) are satisfied.  The amount of any portion of a Member’s or a
Vested Former Member’s Retirement Benefit or Deferred Vested Benefit payable as
a lump sum under this Section 3.4 shall be determined by first reducing such
portion of the benefit in accordance with Section 3.3 (a)(1), (2), (3) or (4),
if applicable, and then calculating the present value of such portion of the
benefit: (i) on the assumption that it is payable in the form of a joint and 50
percent survivor annuity if such Member or Vested Former Member is married; and
(ii) on the basis of (A) a discount rate equal to 85% of the average of the
15-year non-callable U.S. Treasury bond yields (or, in the event that 15-year
non-callable U.S. Treasury bond yields are unavailable, such proxy for the same
as the Plan Administrator may reasonably select) as of the close of business on
the last business day of each of the three months immediately preceding the
date provided in Section 3.3(a) as of which monthly installments would
otherwise commence, as modified by 

 25
 

Section 3.8(a)(i) if applicable, and (B) the 1983 Group
Annuity Mortality Table.

(b)                                 An individual who is expected to become a Member
shall elect, on forms to be provided by the Plan Administrator, whether payment
of all or any portion of the Retirement Benefit or Deferred Vested Benefit to
which such Member may become entitled shall be paid in a lump sum or as an
annuity.  The election must be filed with
the Plan Administrator prior to the commencement of participation in order to
be effective.

(c)                                  Notwithstanding Section 3.4(b), a Member or Vested
Former Member (i) who has accrued a Retirement Benefit or Deferred Vested
Benefit with respect to periods prior to January 1, 2008, and (ii) to whom
distributions have not commenced, shall be permitted to make the lump sum
election described in Section 3.4(b) one or more times on or before December
31, 2007 (or such later date as may be specified by the Internal Revenue
Service in Regulations or other guidance interpreting Section 409A of the Code)
provided that any such election shall be made in writing on such form as the
Plan Administrator may reasonably require and, provided further, that (A) with
respect to an election made on or after January 1, 2006 and on or before
December 31, 2006, the election may apply only to Retirement Benefits or
Deferred Vested Benefits that would not otherwise be payable in 2006 and may
not cause a Retirement Benefit or Deferred Vested Benefit to be paid in 2006
that would not otherwise be payable in 

 26
 

2006; and (B) with respect to an election made on or after January 1, 2007
and on or before December 31, 2007, the election may apply only to Retirement
Benefits or Deferred Vested Benefits that would not otherwise be payable in
2007 and may not cause a Retirement Benefit or Deferred Vested Benefit to be
paid in 2007 that would not otherwise be payable in 2007.

(d)                                 A
Member or Vested Former Member may make subsequent lump sum elections on and
after January 1, 2008, on forms to be provided by the Plan Administrator, to
change the form of payment of his or her Retirement Benefit or Deferred Vested
Benefit under the following conditions:

(i)                                     No
such subsequent election shall be effective until 12 months after the date such
election is filed with the Plan Administrator;

(ii)                                  Except
in the event of payment upon death, any such subsequent election must be filed
with the Plan Administrator at least 12 months prior to the earliest date on
which the Member’s Retirement Benefit or Deferred Vested Benefit could be
payable pursuant to the Member’s last election;

(iii)                               Except
in the event of payment upon death, the date on which the Member’s Retirement
Benefit or Vested Former Member’s Deferred Vested Benefit is paid or commences
to be paid shall be 

 27
 

deferred by not
less than five years  from the date on
which such Retirement Benefit or Deferred Vested Benefit would have been paid
or commenced under the Member’s or Vested Former Member’s last election.  An annuity form of payment shall be treated
as an entitlement to a single payment in accordance with the provisions of the
Regulations and such five-year delay shall apply to all payments under the
annuity.

(e)                                  A Member making an election under Section 3.4(a) may
specify the portion of his Retirement or Deferred Vested Benefit under the Plan
to be received in a lump sum as follows: 
0%, 25%, 50%, 75%, or 100%.

 3.5                              Cessation of Benefits.  Subject to
Section 3.8 hereof, no benefits or no further benefits, as the case may be,
shall be paid to a Member, Vested Former Member or Surviving Spouse if the
Member or Vested Former Member has:

(a)                                  become a stockholder (unless such stock is listed on a
national securities exchange or traded on a daily basis in the over-the-counter
market and the Member’s or Vested Former Member’s ownership interest is not in
excess of 2% of the company whose shares are being purchased), employee,
officer, director or consultant of or to a company, or a member or an employee
of or a consultant to a partnership or any other business or firm, which
competes with any of the businesses identified in the Company’s Employee
Protection Plan, or such Member or Vested Former Member accepts any form of
compensation from such competing entity;

 28
 

(b)                                 been discharged from employment with the Company or
any Affiliated Employer for Cause;

(c)                                   failed to retain in confidence any and all
confidential information concerning the Company or any Affiliated Employer and
its respective business which was known or became known to the Member or Vested
Former Member, except as otherwise required by law and except information (i)
ascertainable or obtained from public information, (ii) received by the Member
or Vested Former Member at any time after the Member’s or Vested Former Member’s
employment by the Company or any Affiliated Employer terminated, from a third
party not employed by or otherwise affiliated with the Company or any
Affiliated Employer, or (iii) which was or became known to the public by any
means other than a breach of this Section 3.5; or

(d)                                 made disparaging comments about the Company or any
Affiliated Employer in any communications, written or oral, with any
individual, company, government body or agency or any other entity
whatsoever.  For purposes hereof,  “disparage” shall mean any communication,
including, but not limited to, any statements, actions or insinuations, made
either directly or through a third party, that would tend to lessen the
standing or stature of  the Company or
any Affiliated Employer in the eyes of a customer, a prospective customer, a
shareholder or a prospective shareholder.

 29
 

 3.6                              Notification of Cessation of Benefits.  Subject to
Section 3.8 hereof, in any case described in Section 3.5, the Member, Vested
Former Member or Surviving Spouse shall be given prior written notice that no
benefits or no further benefits, as the case may be, will be paid to such
Member, Vested Former Member or Surviving Spouse.  Such written notice shall specify the
particular act(s), or failures to act, and the basis on which the decision to
cease paying his or her benefits has been made.

 3.7                              Repayment of Benefits Paid as Lump Sum.

(a)                                  Subject to Section 3.8 hereof, a Member or Vested
Former Member who receives in a lump sum any portion of his or her Retirement
Benefit or Deferred Vested Benefit pursuant to a Lump Sum Election, shall
receive such lump sum portion of such Retirement Benefit or Deferred Vested
Benefit subject to the condition that if such Member or Vested Former Member
engages in any of the acts described in Section 3.5, then such Member or Vested
Former Member shall, within 60 days after written notice by the Company, repay
to the Company the amount described in Section 3.7(b).

(b)                                 The amount described in this Section shall equal the
amount of the Member’s or Vested Former Member’s lump sum benefit paid under
this Plan to which such Member or Vested Former Member would not have been
entitled, if such lump sum benefit had instead been payable in the 

 30
 

form of an annuity under this Plan and such annuity payments
were subject to the provisions of Section 3.5.

 3.8                              Change in Control.

(a)           Anything
in this Plan to the contrary notwithstanding:

(i)                                     Any Member, whose employment with the Company or an
Affiliated Employer is involuntarily terminated by the Company or an Affiliated
Employer at or within two years following a Change in Control for a reason
other than Cause or whose employment is voluntarily terminated by the Member with
Good Reason at or within two years following a Change in Control shall be
deemed to have completed five years of Service for purposes of Section 3.2(a)
hereof and shall be credited with three additional years of Service for
purposes of calculating the benefits payable under Sections 3.1(b) or 3.2(b)
hereof and, notwithstanding the provisions of Section 3.3 of this Plan, any
reductions in the benefits payable under Sections 3.1(b) or 3.2(b) otherwise
applicable under Sections 3.3 (a) (1), (2), (3) or (4) shall not apply unless
such Member shall have terminated employment prior to attainment of age 52, in
which case the Actuarial Equivalent Value of such benefits shall be paid,
calculated on the assumption that unreduced benefits are payable upon such Member’s
attainment of age 52.  Payment of such benefits shall be made in the form
provided in Section 3.3, 

 31
 

commencing as provided in Section
3.3(a) or (b), as the case may be, provided that with respect to Deferred
Vested Benefits, the commencement of payment shall be determined without regard
to whether the Member has attained age 55. 
In addition, in the event that a Member’s Service shall have been
limited pursuant to Section 1.35(c) to disregard all or any portion of service
prior to such Member’s participation in the Plan, such limitation shall be
eliminated in the event of such Member’s termination of employment at or within
two years following a Change in Control as provided above in this subsection
(i).

(ii)                                  In the event of a Potential Change in Control or
Change in Control, the Company shall, not later than 15 days thereafter, have
established one or more so-called “rabbi” trusts and shall deposit therein cash
in an amount sufficient to provide for full payment of all potential benefits
payable under the Plan at or following a Change in Control; provided, however, that no such deposit shall be made
if it would cause a violation of  the
funding limitations of Section 409A(b)(3) of the Code.  Such rabbi trust(s) shall be irrevocable and
shall provide that the Company may not, directly or indirectly, use or recover
any assets of the trust(s) until such time as all obligations which potentially
could arise hereunder have been settled and paid in full, subject only to the
claims of creditors of the Company in the event of insolvency or bankruptcy 

 32
 

of the Company; provided, however, that if no Change in
Control has occurred within two years after such Potential Change in Control,
such rabbi trust(s) shall at the end of such two-year period become revocable
and may thereafter be revoked by the Company.

(iii)                               The provisions of Sections 3.5 through 3.7 shall be
of no force or effect with respect to Members who Retire or who have a
Separation from Service for the reasons
described in Section 3.8(a)(i) within a two-year period following a Change in
Control.

SECTION 4
- DISABILITY BENEFITS

 4.1                              Eligibility.  A Member who is enrolled for the maximum
disability insurance coverage available under the Basic Disability Plan and who
has become Disabled shall be entitled to the Disability Benefit described in
Section 4.2.

 4.2                              Amount.  The Disability Benefit of a Member entitled
thereto shall be an annual benefit payable in monthly installments under this
Plan during the same period as disability benefits are actually paid by the
Basic Disability Plan, in an amount equal to 60% of the Member’s Covered
Earnings, offset by the Member’s (i) Basic Disability Plan Benefit, (ii) Basic
Plan Benefit, if the Basic Disability Plan Benefit is offset by such Basic Plan
Benefit, and (iii) Other Disability Income.

SECTION 5-
SURVIVING SPOUSE’S BENEFITS

 5.1                              Death Prior to Benefit Commencement.  Upon the
death of a Member or Vested Former Member, prior to the commencement of his or
her Retirement Benefit or 

 33
 

Deferred Vested Benefit hereunder,
any such Member shall be deemed to have completed five years of Service for
purposes of Section 3.2(a) and his or her Surviving Spouse will be entitled to
a Surviving Spouse’s Benefit under this Plan equal to 50% of the Retirement or
Deferred Vested Benefit that would have been provided from the Plan had the
Member or Vested Member retired from or terminated employment with the Company
or an Affiliated Employer on the date of death and commenced benefits on the
later of the date the Member would have attained age 55 or the date of the
Member’s death.

 5.2                              Death On or After Benefit Commencement.  Upon the
death of a Vested Former Member while he or she is receiving Retirement or
Deferred Vested Benefits, his or her Surviving Spouse shall receive a Surviving
Spouse’s Benefit equal to 50%  of the Benefit
he or she was receiving at the time of death. 
Notwithstanding the foregoing, no benefit shall be payable under this
Section 5.2  to the extent a Retirement Benefit or
Deferred Vested Benefit was previously paid to a Member or Vested Former Member
in the form of a lump sum.

 5.3                              Commencement of Surviving Spouse’s Benefit.  Except as
provided in Section 5.4, the Surviving Spouse’s Benefit provided under Sections
5.1 or 5.2 will be payable monthly, commencing in the calendar month next following the calendar month in which the Member’s
death occurs.  Such benefits shall
continue until the first day of the month in which the Surviving Spouse dies.

 

 34

5.4                                 Lump Sum Payment.

(a)                                  If a Member or a Vested Former Member made an
Election under Section 3.4 but such Member or Vested Former Member died prior
to such lump sum payment, the Surviving Spouse’s Benefit payable under Section
5.1 hereof will be payable in the form or combination of forms of payment so
elected by such Member or Vested Former Member pursuant to such Lump Sum
Election.  The amount of any lump sum
payment under the Plan shall be determined using the actuarial assumptions set
forth in Section 3.4(a).

(b)                                 If the lump sum value, determined in the same manner
as provided under Section 3.4(a), of a Surviving Spouse’s Benefit is $10,000 or
less at the time such Surviving Spouse’s Benefit is payable under this Plan,
such benefit shall be payable as a lump sum provided that the benefits
payable to or on behalf of such Member or Vested Former Member under all
similar arrangements that would constitute a nonqualified deferred compensation
plan under the Regulations are being paid at the same time.

(c)                                  Any Surviving Spouse’s Benefit which is payable as a
lump sum shall be paid on the first day of the calendar month next
following the calendar month in which the Member’s or Vested Former Member’s
death occurred.

5.5                                 Reduction.  Notwithstanding the foregoing provisions of
Section 5, the amount of a Surviving Spouse’s Benefit shall be reduced by one
percentage point for each 

 35
 

year (where a half year or more is treated as a full year)
in excess of ten years that the age of the Member or Vested Former Member exceeds
the age of the Surviving Spouse.

SECTION 6
- PLAN ADMINISTRATOR

6.1                                 Duties and Authority.  The Plan
Administrator shall be responsible for the administration of the Plan and may
delegate to any management committee, employee, director or agent its responsibility
to perform any act hereunder, including, without limitation, those matters
involving the exercise of discretion; provided, that such delegation shall be
subject to revocation at any time at the Plan Administrator’s discretion.  The Plan Administrator shall have the sole
discretion to determine all questions arising in connection with the Plan, to
interpret the provisions of the Plan and to construe all of its terms, to
adopt, amend, and rescind rules and regulations for the administration of the
Plan, and generally to conduct and administer the Plan and to make all
determinations in connection with the Plan as may be necessary or
advisable.  All such actions of the Plan
Administrator shall be conclusive and binding upon all Members, Former Members,
Vested Former Members, Surviving Spouses and other persons.

6.2                                 Presentation of Claims. 
Claims for benefits shall be filed in writing with the Plan
Administrator.  Written or electronic
notice of the disposition of a claim shall be furnished to the claimant within
90 days after the claim is filed (or within 180 days if special circumstances
require an extension of time for processing the claim

 36
 

and
if notice of such extension and circumstances is provided to the claimant
within the initial 90-day period.)

6.3                                 Claims Denial Notification.  If a claim is wholly or partially denied, the
Plan Administrator shall furnish to the claimant a written notice setting forth
in a manner calculated to be understood by the claimant:

(a)                                  the
specific reason(s) for denial;

(b)                                 specific reference(s) to pertinent Plan
provisions on which any denial is based;

(c)                                  a
description of any additional material or information necessary for the
claimant to perfect the claim, and an explanation of why such material or
information is necessary;

(d)                                 an
explanation of the Plan’s claims review procedures and the applicable time
limits for such procedures; and

(e)                                  a
statement that the claimant has a
right to bring a civil action under Section 502(a) of ERISA following an
adverse determination on review.

6.4                                 Claims
Review Procedure.  Upon a denial, the
claimant is entitled (either in person or by his duly authorized
representative) to:

(a)                                  request a subsequent review of the claim by the
Plan Administrator upon written application for review made to the Plan
Administrator.  In the case of a denial
as to which written notice of denial has been given to the 

 37
 

                                                claimant, any such request for review of the
claim must be made within 60 days after receipt by the claimant of such
notice.  A claimant must submit a written
application for review before the claimant is permitted to bring a civil action
for benefits;

(b)                                 review pertinent documents relating to the
denial; and

(c)                                  submit
written comments, documents, records and other information relating to the
claim.

6.5                                 Timing.  The Plan Administrator shall make its
decision and notify the claimant with respect to a claim not later than 60 days
after receipt of the request.  Such
60-day period may be extended for another period of 60 days if the Plan Administrator
finds that special circumstances require an extension of time for processing
and notice of the extension and special circumstances is provided to the
claimant within the initial 60-day period.

6.6                                 Final
Decision.  The claim for review shall
be given a full and fair review that takes into account all comments,
documents, records and other information submitted that relates to the claim,
without regard to whether such information was submitted or considered in the
initial benefit determination.  The Plan
Administrator shall provide the claimant with written or electronic notice of
the decision in a manner calculated to be understood by the claimant.  The notice shall include specific reasons for
the decision, specific references to the pertinent Plan provisions on which the
decision is based, a statement that the claimant has a right to bring a civil
action under Section 502(a) of ERISA, and a statement that 

 38
 

the
claimant is entitled to receive, upon request and free of charge, reasonable
access to and copies of all documents, records and other information relevant
to the claim.  A document is relevant to
the claim if it was relied upon in making the determination, was submitted,
considered or generated in the course of making the determination or demonstrates
that benefit determinations are made in accordance with the Plan and that Plan
provisions have been applied consistently with respect to similarly situated
claimants.

SECTION 7-
MISCELLANEOUS

7.1                                 Amendment;
Suspension. 
The Board, may, in its sole discretion suspend or amend this Plan at any
time or from time to time, in whole or in part and the Employee Benefits
Committee of the Company may amend the Plan without the approval of the Board
with respect to amendments that such Committee determines do not have a
significant effect on the cost of the Plan; provided, however, that no such
suspension or amendment of the Plan may (a) adversely affect a Member’s or
Vested Former Member’s benefit under the Plan to which he or she has become
entitled in accordance with the Plan as in effect on the date immediately
preceding the date of such suspension or amendment, or (b) adversely affect a
Member’s or Vested Former Member’s right or the right of a Surviving Spouse to
receive a benefit in accordance with the Plan as in effect on the date
immediately preceding the date of such suspension or amendment, or (c) cause
any payment that a Member, Vested Former Member or Surviving Spouse is entitled
to receive under this Plan to become subject to an income tax penalty under
Section 409A of the Code.

 39
 

7.2                                 Termination.
 This
Plan may be terminated and lump sum distributions made to Members, Vested
Former Members (or their Surviving Spouses) of their Retirement Benefits and
Deferred Vested Benefits hereunder only in accordance with one of the following
methods:

(a)                                  within twelve months of a dissolution of the Company
taxed under Section 331 of the Code, or with the approval of a bankruptcy court
pursuant to 11 U.S.C. Section 503(b)(1(A), provided that Members’ or Vested Former
Members’ Retirement Benefits or Deferred Vested Benefits are included in their
gross incomes in the latest of :  (i) the
calendar year in which the Plan termination occurs; or (ii) the first calendar
year in which the payment is administratively practicable;

(b)                                 within the thirty days preceding or the twelve months
following a change in control as defined in Regulations Section
1.409A-2(g)(4)(i), provided that all substantially similar arrangements
sponsored by the Company are terminated so that all Members and Vested Former
Members in this Plan and all participants under substantially similar
arrangements are required to receive all amounts of compensation deferred under
the terminated arrangements within twelve months of the date of termination of
the arrangements;

(c)                                  (i) all arrangements sponsored by the Company that
would be aggregated with any terminated arrangement under Regulations Section
1.409A-1(c) if the same Member or Vested Former Member participated in all of
the 

 40
 

arrangements
are terminated; (ii) no payments other than payments that would be payable
under the terms of the arrangements if the termination had not occurred are
made within twelve months of the termination of the arrangements; (iii) all
payments are made within twenty-four months of the termination of the
arrangements; and (iv) the Company does not adopt a new arrangement that would
be aggregated with any terminated arrangement under Regulations Section
1.409A-1(c) if the same Member or Vested Former Member participated in both
arrangements, at any time within five years following the date of termination
of the arrangement; or

(d)                                 such other events and conditions as the Internal
Revenue Service may prescribe.

Anything
in this Section 7 to the contrary notwithstanding, no such termination of the
Plan may (a) adversely affect a Member’s or Vested Former Member’s benefit
under the Plan to which he or she has become entitled in accordance with the
Plan as in effect on the date immediately preceding the date of such
termination, or (b) adversely affect a Member’s or Vested Former Member’s right
or the right of a Surviving Spouse to receive a benefit in accordance with the
Plan as in effect on the date immediately preceding the date of such
termination, or (c) cause any payment that a Member, Vested Former Member or
Surviving Spouse is entitled to receive under this Plan to become subject to an
income tax penalty under Section 409A of the Code.

 41
 

7.3                                 No
Employment Rights.  Nothing contained herein will confer upon any
Member, Former Member or Vested Former Member the right to be retained in the
service of the Company or any Affiliated Employee, nor will it interfere with
the right of the Company or any Affiliated Employer to discharge or otherwise
deal with Members, Former Members or Vested Former Members with respect to
matters of employment.

7.4                                 Unfunded
Status. 
Members and Vested Former Members shall have the status of general
unsecured creditors of the Company, and this Plan constitutes a mere promise by
the Company to make benefit payments at the time or times required hereunder.
It is the intention of the Company that this Plan be unfunded for tax purposes
and for purposes of Title I of ERISA and any trust created by the Company and
any assets held by such trust to assist the Company in meeting its obligations
under the Plan shall meet the requirements necessary to retain such unfunded
status.

7.5                                 Arbitration.  Any dispute
or controversy arising under or in connection with the Plan shall be settled
exclusively by arbitration in Fairfield, Connecticut in accordance with the
rules of the American Arbitration Association in effect at the time of such
arbitration.  Upon submission of
invoices, the Company shall promptly pay or reimburse all reasonable costs and
expenses (including fees and disbursements of counsel and pension experts)
incurred to assert rights under this Plan or in any proceeding in connection
therewith, brought by a Member, Vested Former Member, Former Member or
Surviving Spouse, whether or not such Member, Vested Former Member, Former
Member or Surviving Spouse is 

 42
 

ultimately successful in enforcing such rights or in such
proceeding; provided, however, that no reimbursement shall be owed with respect
to expenses relating to any unsuccessful assertion of rights or proceeding if
and to the extent that such assertion or proceeding was initiated or maintained
in bad faith or was frivolous as determined by the arbitrators or a court
having jurisdiction over the matter, in which case any amounts previously paid
by the Company shall be promptly repaid.

7.6                                 No
Alienation. 
Except as otherwise provided in Section 3.3(e)(i), a Member’s or Vested Former Member’s right to benefit
payments under the Plan shall not be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, attachment or
garnishment by creditors of such Member or Vested Former Member or his or her
Surviving Spouse.

7.7                                 Withholding.  The Company
may withhold from any benefit under the Plan an amount sufficient to satisfy
its tax withholding obligations.

7.8                                 Governing
Law. 
The Plan shall be governed by and construed in accordance with the laws
of the State of Connecticut applicable to contracts made and to be performed in
such state to the extent not preempted by federal law. Anything in this Plan to
the contrary notwithstanding, the terms of this Plan shall be interpreted and
applied in a manner consistent with the requirements of Section 409A of the
Code and the Regulations thereunder and the Company shall have no right to
accelerate or make any payment under this Plan except to the extent permitted
under Section 409A of the Code.  The
Company shall have no 

 43
 

obligation, however, to reimburse any Member, Vested Former
Member or Surviving Spouse for any tax penalty or interest payable or provide a
gross-up payment in connection with any tax liability of such Member, Vested
Former Member or Surviving Spouse under Section 409A of the Code except that
this provision shall not apply in the event of the Company’s negligence or
willful disregard in its interpretation of the application of Section 409A of
the Code and the Regulations thereunder to the Plan.

7.9                                 Successors.  The Company
shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company to expressly assume and agree to perform the obligations
of the Company under this Plan in the same manner and to the same extent that
the Company would have been required to perform such obligations if no such
succession had taken place and such assumption shall be an express condition to
the consummation of any such purchase, merger, consolidation or other
transaction.

7.10                           Integration.  In the event
of any conflict or ambiguity between this Plan and the terms of any employment
agreement between a Member and the Company or any Change in Control Agreement
between a Member and the Company (this Plan and any such employment agreement
or Change in Control Agreement being collectively referred to herein as the “arrangements”),
such conflict or ambiguity shall be resolved in accordance with the terms of
that arrangement which are most beneficial to the Member; provided, however,
that no such resolution of any such 

 44
 

conflict or ambiguity shall operate to cause the Member to
receive duplicate payments or benefits under the arrangements.

 45Exhibit 10.54.1

First Amendment to the

Employment Agreement for David M. Thomas

As Amended and Restated as of January 1, 2005

THIS FIRST AMENDMENT to the Employment Agreement by and between IMS Health Incorporated (the
“Company”) and David M. Thomas (“Executive”) as amended and restated at January
1, 2005 (the “Agreement”) shall become effective as of January 1, 2007.

WHEREAS, the
Company and Executive entered into the Agreement effective as of November 14,
2000 and amended and restated the Agreement as of December 3, 2002 and January
1, 2005; and

WHEREAS, the
Company and Executive desire that Executive continue to provide consulting
services to the Company during 2007.

NOW, THEREFORE,
in consideration of the foregoing and the agreements set forth below, the
Company and Executive hereby agree as follows:

1.             Section 6(e) of the
Agreement is amended as follows (overstruck text is deleted, underscored text
is added):

(e)          
Consulting
Obligation Following Retirement.  Upon Executive’s Retirement at or after March 31, 2006, beginning
at the date of such Retirement and continuing through December 31, 2006,
Executive shall provide consulting services to the Company on a regular basis
up to a maximum amount of six (6) days per month.  The Company shall pay
Executive a consulting fee of $70,000 per month, plus reimbursement of
reasonable expenses.  The Company will provide to Executive office and
administrative support during the period in which he provides consulting
services to the Company.  During 2007, at the Company’s
request, Executive shall provide consulting services to the Company.   The Company shall pay Executive a retainer
of $50,000 with respect to such services in 2007, payable no later than January
12, 2007 (plus reimbursement of reasonable expenses as incurred and
documented).  In consideration of such
retainer, Executive shall provide 100 hours of consulting services at no
additional charge.  Consulting services
requested by the Company in excess of 100 hours during 2007 shall be billed to
the Company at a rate of $500 per hour (plus reimbursement of reasonable
expenses as incurred and documented). 
Executive shall maintain records of hours billed in 2007 and make such
records available to the Company upon request. 
The Company shall provide to Executive administrative support reasonably
necessary for the performance of such consulting services during 2007.  The obligation of confidentiality under
Section 10(b) of the Agreement shall be applicable to any information obtained
by Executive in the course of consulting to the same extent as if such
information had been obtained in the course of employment.  The consulting fee payable for 2007 shall be
non-refundable in the event of Executive’s death or disability or if Executive
bills less than 100 hours during 2007.  In the event of
Executive’s death or Disability during the Term or after the Term but prior to
the end of the period during which the consulting services are to be provided
under this Section 6(e), the Company will pay to Executive (or his beneficiaries
in the case of death) a lump sum equal to the then present value amount of
consulting fees that would have thereafter been paid hereunder if Executive had
provided consulting services through the end of the specified consulting
period.  

 -1-
 

 

IN WITNESS WHEREOF, Executive has hereunto set his hand and the
Company has caused this instrument to be duly executed on the 23rd day of January,
2007

	
  DAVID M. THOMAS

  	
   

  	
   

  	
   

  	
  IMS HEALTH INCORPORATED

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ David M. Thomas

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ David R. Carlucci

  
	
  David M. Thomas

  	
   

  	
   

  	
   

  	
  Name:

  	
  David R. Carlucci

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Chairman of the Board, Chief Executive Officer and
  President

  
							

 

 

 -2-

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