Document:

EX-10.3

 

Exhibit 10.3

NATIONAL FUEL GAS COMPANY

TOPHAT PLAN

Adopted March 20, 1997

Amended September 20, 2007

Current as of September 20, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	Preamble
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 1 Definitions
	 	 	1	 
	 
	 	 	 	 
	1.1 “AARCIP
	 	 	1	 
	1.2 “Base Salary
	 	 	1	 
	1.3 “Beneficiary
	 	 	2	 
	1.4 “Code
	 	 	2	 
	1.5 “Committee
	 	 	2	 
	1.6 “Company
	 	 	2	 
	1.7 “Continuing Service Participant
	 	 	2	 
	1.8 “DCP
	 	 	2	 
	1.9 “Employer
	 	 	2	 
	1.10 “ERP
	 	 	2	 
	1.11 “409A Election Date
	 	 	2	 
	1.12 “409A Service Recipients
	 	 	3	 
	1.13 “Legal Limits
	 	 	3	 
	1.14 “Maximum Matching Contribution Percentage
	 	 	3	 
	1.15 “Participant
	 	 	3	 
	1.16 “Plan
	 	 	3	 
	1.17 “Plan Year
	 	 	4	 
	1.18 “Policies
	 	 	4	 
	1.19 “Retirement
	 	 	4	 
	1.20 “Retirement Plan
	 	 	4	 
	1.21 “Retirement Plan-Related Tophat Benefit
	 	 	4	 
	1.22 “TDSP
	 	 	4	 
	1.23 “TDSP-Related Matching Benefit
	 	 	4	 
	1.24 “TDSP-Related Retirement Savings Account Benefit
	 	 	4	 
	1.25 “TDSP-Related Tophat Benefit
	 	 	4	 
	1.26 “Termination of Employment
	 	 	4	 
	1.27 “409A Transition Rules
	 	 	5	 
	 
	 	 	 	 
	ARTICLE 2 Benefits Provided
	 	 	5	 
	 
	 	 	 	 
	2.1 Coordination With Other Benefits
	 	 	5	 
	2.2 TDSP-Related Tophat Benefit
	 	 	5	 
	2.3 Retirement Plan-Related Tophat Benefit
	 	 	6	 
	2.4 Distribution of TDSP-Related Tophat Benefit
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 3 Participants’ Termination of Employment
	 	 	8	 
	 
	 	 	 	 
	3.1 TDSP-Related Tophat Benefits
	 	 	8	 

i 

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 
	 	 	Page
	3.2 Retirement Plan-Related Tophat Benefits
	 	 	9	 
	3.3 Lump Sum Cash-Out of De Minimis Tophat Benefits
	 	 	13	 
	 
	 	 	 	 
	ARTICLE 4 Beneficiary Designation
	 	 	13	 
	 
	 	 	 	 
	4.1 Beneficiary Designation
	 	 	13	 
	4.2 Change of Beneficiary Designation
	 	 	13	 
	4.3 No Beneficiary Designation
	 	 	14	 
	4.4 Effect of Payment
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 5 Termination and Modification
	 	 	14	 
	 
	 	 	 	 
	5.1 Termination and Amendment
	 	 	14	 
	5.2 Limited Power of President to Amend Plan
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 6 Administration
	 	 	14	 
	 
	 	 	 	 
	6.1 Committee Duties
	 	 	14	 
	6.2 Agents
	 	 	15	 
	6.3 Binding Effect of Decisions
	 	 	15	 
	6.4 Indemnity of Committee
	 	 	15	 
	6.5 Section 409A of the Code
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 7 Miscellaneous
	 	 	15	 
	 
	 	 	 	 
	7.1 Unsecured General Creditor
	 	 	15	 
	7.2 Nonassignability
	 	 	15	 
	7.3 Not a Contract of Employment
	 	 	16	 
	7.4 Health Information
	 	 	16	 
	7.5 Governing Law
	 	 	16	 
	7.6 Withholding
	 	 	16	 
	7.7 Binding Effect
	 	 	16	 
	7.8 Borrowing
	 	 	16	 
	7.9 Validity
	 	 	16	 
	7.10 Incapacity of Person Entitled To Payment
	 	 	16	 
	7.11 Captions
	 	 	17	 
	7.12 Construction
	 	 	17	 

ii 

 

NATIONAL FUEL GAS COMPANY

TOPHAT PLAN

Preamble

     National Fuel Gas Company has adopted the National Fuel Gas Company Tophat Plan
(“Plan”) to help attract and retain high caliber employees in high-level management
positions, to provide such employees with a tax-favored vehicle to accumulate assets and to enhance
retirement benefits, to restore benefits lost to employees under the TDSP as a result of the effect
of Legal Limits upon their receipt of Company matching contributions in the TDSP, and to restore
benefits lost to employees under the Retirement Plan as a result of their participation in the DCP
(with respect to persons not eligible for the ERP). Notwithstanding the above, the only employees
eligible to receive benefits under this Plan are highly-compensated employees as defined by the
Code and its corresponding regulations, as the same may be amended from time to time.

     The tophat benefits provided by this Plan were previously contained within the DCP. These
tophat benefits have now been segregated into this separate Plan document, in part because federal
legislation enacted in 1996 (which limits the ability of states to impose a source tax on
retirement benefits earned within such states) may penalize employees unless the provisions
authorizing tophat benefits are reflected in a separate plan, and in part to more fully and
accurately describe the tophat benefits.

     This Plan has been amended to comply with the requirements of Section 409A of the Code.

ARTICLE 1

Definitions

     For purposes hereof, unless otherwise clearly apparent from the context, the following phrases
or terms shall have the following indicated meanings:

     1.1 “AARCIP” shall mean the National Fuel Gas Company Annual At Risk Compensation
Incentive Program, as amended from time to time or any successor thereto.

     1.2 “Base Salary” shall mean gross cash compensation per regular payroll period,
including salary continuation payments made by an Employer on account of sickness or accident,
which are paid to a Participant for employment services rendered to an Employer, before reduction
for compensation deferred pursuant to the DCP or pursuant to the TDSP, and shall also include
(i) payments made to a Participant pursuant to the AARCIP or a successor plan thereto,
(ii) awards of restricted stock that are made to

 

 

a Participant for service in the Company’s fiscal year 1996 or later to supplement an AARCIP
award for that fiscal year, which was approximately equal to the maximum AARCIP award then
permissible consistent with the shareholder approval applicable to that AARCIP award, valued at the
average of the high and low market value on the grant date, and (iii) any
performance-related lump sum compensation (i.e., lump sum payments other than
expense or tuition reimbursements, moving expense reimbursements, lump sum payments for eligible
unused vacation, worker’s compensation payments, award payments for suggestions, severance payments
or any other non-performance related payments) made on or after August 1, 1997, but shall exclude
all other fees, commissions, special, extra or nonperiodic compensation in any form.
Notwithstanding the above, amounts described in clause (iii) shall only be included in Base Salary
for officers of any Employer; provided that, for officers of Seneca Resources Corporation, such
amounts shall be included in Base Salary solely for purposes of determining such officers’
TDSP-Related Retirement Savings Account Benefit.

     1.3 “Beneficiary” shall mean the person, persons, or entity designated by the
Participant to receive any benefits payable under this Plan upon the death of a Participant.

     1.4 “Code” shall mean the Internal Revenue Code of 1986, as amended.

     1.5 “Committee” shall mean the committee appointed to manage and administer the Plan
in accordance with its provisions of Article 6.

     1.6 “Company” shall mean National Fuel Gas Company and all successor companies
thereto.

     1.7 “Continuing Service Participant” means a Participant who ceases to be an employee
of, but continues to provide services to, any of the 409A Service Recipients following his
Retirement or Termination of Employment, or is reasonably expected (at the time of such Retirement
or Termination of Employment) to provide services to any of the 409A Service Recipients within 12
months of such termination of employment.

     1.8 “DCP” shall mean the National Fuel Gas Company Deferred Compensation Plan, as
amended from time to time or any successor thereto.

     1.9 “Employer” shall mean the Company and each of its subsidiaries which has one or
more eligible employees who have been selected to participate in the Plan.

     1.10 “ERP” shall mean the National Fuel Gas Company and Participating Subsidiaries
Executive Retirement Plan, as amended from time to time or any successor thereto.

     1.11 “409A Election Date” means December 31, 2007 or such other date as the Company
shall determine to be the latest date that benefits payable under the Plan may

2

 

commence to be paid based on the Participant’s election as to the form and timing of payment
in respect of his or her benefits payable under the Retirement Plan without violating the election
requirements applicable under Section 409A of the Code and any regulations, proposed regulations or
other guidance promulgated thereunder.

     1.12 “409A Service Recipients” means the Company and each other entity which is in the
same controlled group of affiliated employers as the Company, as determined in accordance with the
rules under Section 414(b) and (c) of the Code.

     1.13 “Legal Limits” shall mean (i) the provisions of the Retirement Plan and
applicable section(s) of the Code that prevent the Retirement Plan from including in calculating
“Final Average Pay” compensation deferred pursuant to the DCP, (ii) the maximum amount of
annual compensation of an employee that may be taken into account under the Retirement Plan in
accordance with Section 401(a)(17) of the Code, as amended and supplemented, and the implementing
provisions of the Retirement Plan, but only with respect to Participants who are not members under
the ERP, (iii) the nondiscrimination rules under Section 401(a)(4) and the annual limits
imposed by Sections 401(k)(3), 401(m)(2), 401(a)(17), 402(g) or 415 of the Code, or a successor to
any such sections, and/or (iv) the corresponding requirements of the Employment Retirement
Income Security Act of 1974, as amended (“ERISA”), respecting the Retirement Plan and
respecting deferrals under and employer matching contributions to the TDSP.

     1.14 “Maximum Matching Contribution Percentage” shall mean with respect to a
Participant the maximum employer matching contribution percentage applicable to the Participant
under the TDSP based on such Participant’s actual contributions under the TDSP.

     1.15 “Participant” shall mean any person currently or formerly in the regular
full-time employment of an Employer,

     (a) (i)  who has lost benefits under the TDSP as a result of Legal Limits; and
(ii) whose Accounts have not been completely distributed to him or her; or

     (b) (i) who has vested in his or her benefits under the Retirement Plan;
(ii) who has lost benefits under the Retirement Plan as a result of Legal Limits;
(iii) whose Retirement Plan benefits have not been completely distributed to him or
her; and (iv) who is not a member under the ERP.

     1.16 “Plan” shall mean the National Fuel Gas Company Tophat Plan, as amended from time
to time or any successor thereto.

3

 

     1.17 “Plan Year” shall mean the 12 consecutive month period commencing on August 1 and
ending on the next following July 31.

     1.18 “Policies” shall mean the policies described in Section 7.1.

     1.19 “Retirement” and “Retire” shall mean severance from employment with the
Employer at or after the attainment of age fifty-five (55), or prior thereto pursuant to the
disability retirement provisions of the Retirement Plan; provided, however, that in the case of any
Continuing Service Participant, the terms Retirement or Retire (and any similar terms used in this
Plan) shall be deemed to refer to the date at which such Participant incurs a “separation from
service,” within the meaning of Section 409A of the Code and the regulations promulgated
thereunder, from the 409A Service Recipients. This means that rather than being entitled to
commence to receive a distribution hereunder upon, or at a specified time following, Retirement, a
Continuing Service Participant shall only be entitled to receive such distribution upon, or at a
specified time following, such a separation from service.

     1.20 “Retirement Plan” shall mean the National Fuel Gas Company Retirement Plan, as
amended from time to time or any successor thereto.

     1.21 “Retirement Plan-Related Tophat Benefit” shall mean the tophat benefit described
in Section 2.3.

     1.22 “TDSP” shall mean the National Fuel Gas Company Tax-Deferred Savings Plan for
Non-Union Employees, as amended from time to time or any successor thereto.

     1.23 “TDSP-Related Matching Benefit” shall have the meaning ascribed thereto in
subclause (i) of Section 2.2.

     1.24 “TDSP-Related Retirement Savings Account Benefit” shall have the meaning ascribed
thereto in subclause (ii) of Section 2.2.

     1.25 “TDSP-Related Tophat Benefit” shall mean the TDSP-Related Matching Benefit and
the TDSP-Related Retirement Savings Account Benefit.

     1.26 “Termination of Employment” shall mean the cessation of a Participant’s
employment with the 409A Service Recipients for any reason other than Retirement; provided,
however, that in the case of any Continuing Service Participant, the term Termination of Employment
(and any similar terms used in this Plan) shall be deemed to refer to the date at which such
Participant incurs a “separation from service,” within the meaning of Section 409A of the Code and
the regulations promulgated thereunder, from the 409A Service Recipients. This means that rather
than being entitled to receive a distribution hereunder upon, or at a specified time following, a
Termination of

4

 

Employment, a Continuing Service Participant shall only be entitled to receive such
distribution upon, or at a specified time following, such a separation from service.

     1.27 “409A Transition Rules” shall mean the rules described in Section 2.3.

ARTICLE 2

Benefits Provided

     2.1 Coordination With Other Benefits. The benefits provided for a Participant under
the Plan are in addition to any other benefits to which the Participant may be entitled under any
other plan or program of the Employer. This Plan shall supplement and shall not supersede, modify,
amend, enhance or diminish any other such plan or program except as may otherwise be expressly
provided.

     2.2 TDSP-Related Tophat Benefit. Each Participant who is eligible to participate in
the TDSP shall be credited with a TDSP-Related Tophat Benefit equal to the sum of (i) the
employer matching contributions that the Participant would have received under the TDSP based on
such Participant’s elective deferrals thereunder (“TDSP-Related Matching Benefit”) and (ii)
in the case of any Participant who is a Post-2003 Qualified Participant under the TSDP, the
additional employer contributions that the Participant would have received under the TSDP had such
Participant’s monthly Company Contribution Compensation (as defined in the TSDP) been equal to his
Base Salary as defined for purposes of this Plan (“TDSP-Related Retirement Savings Plan Account”),
in each case (x) assuming that the Participant’s deferrals and entitlements to employer
contributions were not limited by the Legal Limits and (y) reduced by the actual
corresponding contribution made for his benefit under the TSDP.

     (a) Example. This example shall illustrate how the TDSP-Related Matching Benefit
provisions of this Section 2.2 are to be applied. Assume that a particular Participant’s TDSP
deferral percentage (salary contribution percentage) is 6%, and that his or her Maximum Matching
Contribution Percentage under the TDSP is 6%. Also assume that his or her Base Salary as defined
in the Plan for that calendar year is $399,000 (i.e., $285,000 base annual pay plus
$114,000 paid under the AARCIP), that his or her base salary as defined in the TDSP for the same
period is $285,000, that the Code §401(a)(17) limit for that year is $225,000, that the Code
§402(g) limit is $15,500 for that year, and that the Code §401(k)(3) and §415 limits do not
adversely affect the Participant in this example.

     Under the TDSP, the Participant would be entitled to a Maximum Matching Contribution of
$13,500 (6% x $225,000 Code §401(a)(17) limit). Under Section 2.2, the Participant would receive a
TDSP-Related Matching Benefit of $10,440 (i.e., 6% x [$399,000 minus $225,000 base salary
taken into account under the TDSP]). Therefore, the total aggregate “employer matching
contribution” received by the Participant would

5

 

be $23,940 ($13,500 in the TDSP and $10,440 by virtue of the TDSP-Related Matching Benefit).

     (b) Example. This example shall illustrate how the TDSP-Related Retirement Savings
Plan Account provisions of this Section 2.2 are to be applied. Assume that a particular
Participant is a Post-2003 Qualified Participant under the TSDP with less than eight years of
service. Also assume that his Base Salary as defined in the Plan for that calendar year is
$420,000 (i.e., $300,000 base annual pay plus $120,000 paid under the AARCIP), that
his or her base salary as defined in the TDSP for the same period is $300,000 and his monthly
Company Contribution Compensation for the same period is $25,000 ($300,000 divided by 12), that the
Code §401(a)(17) limit for that year is $225,000, and that the Code §415 limits do not adversely
affect the Participant in this example.

     Under the TDSP, the Participant would be entitled to an allocation to his Retirement Savings
Account of $4,500 (2% x $225,000 Code §401(a)(17) limit). Under Section 2.2, the Participant would
receive a total tophat of $3,900 (i.e., 2% x [$420,000 minus $225,000 base salary taken
into account under the TDSP]). Therefore, the total aggregate “retirement savings contribution”
received by the Participant would be $8,400 ($4,500 in the TDSP and $3,900 by virtue of
TDSP-Related Retirement Savings Account Benefit).

     As can be seen by these illustrations, the tophats are intended to make up for and not under-
or overcompensate for Participants’ losses caused by the various Legal Limits applying to, and the
base salary definition of, the TDSP.

     2.3 Retirement Plan-Related Tophat Benefit.

     (a) Tophat. Any loss of benefits to a Participant under the Retirement Plan, which
results from deferrals made under the DCP by the Participant, or otherwise are due to the Legal
Limits, shall be restored by the Company, provided that such Participant is not also a member of
the ERP. Example. An example of the Retirement Plan-Related Tophat Benefit is as follows:
Assume that a Participant eligible for this tophat retired in the year 2000, at age 60. Assume
that his or her “Final Average Pay” under the Retirement Plan would have been $100,000, had he or
she not participated in the DCP. Assume further that, as a result of his or her participation in
the DCP, his or her “Final Average Pay” is reduced to $80,000. Assume further that his or her
Retirement Plan annuity (expressed as a single life annuity) consequently is reduced from
$3,750/month to $3,000/month. This Participant will then receive $750 per month for life under
this tophat or the actuarial equivalent thereof, determined using the actuarial assumptions under
the Retirement Plan in accordance with the form of payment elected (or, absent such an election,
the four-year period certain annuity described in Section 3.2(b)(i)).

6

 

     (b) Distribution Elections. The following rules shall apply with respect to
distribution elections made in respect of the Retirement Plan-Related Tophat Benefit under this
Section 2.3:

     (i) Pursuant to the transitional rules contained in the Internal Revenue Service
guidance and treasury regulations under Section 409A of the Code (the “409A Transition
Rules”), a Participant who commences receiving payment of his or her tophat on or prior
to the 409A Election Date by reason of Retirement shall receive such payments in the same
form as the annuity he or she receives under the Retirement Plan.

     (ii) In accordance with the 409A Transition Rules, a Participant who is entitled to a
tophat with respect to any period ending on or prior to the 409A Election Date, and who
does not commence receiving a distribution thereof on or prior to the 409A Election Date,
may make an election on or prior to, and effective as of, the 409A Election Date, regarding
the distribution of such tophat upon Retirement; provided that (x) any such
election shall also be applicable with respect to any tophat accrued by the Participant
under this Section 2.3 after the 409A Election Date and (y) Section 3.2(a), if
applicable, shall supersede any such election.

     (iii) A Participant who commences participation in the Plan after the 409A Election
Date may make an election regarding the distribution of the tophat accrued under this
Section 2.3 at such times (but no later than 30 days after the date that participation in
the Plan shall commence) and in such manner as shall be prescribed by the Committee.

     (iv) A Participant may only change an election previously filed pursuant to this
Section 2.3(b) in accordance with the conditions specified in this subclause (iv). Except
as otherwise expressly provided below, any such change in such an election, whether as to
when payment of Retirement Plan-Related Tophat Benefit is to commence or the form of
distribution of such Retirement Plan-Related Tophat Benefit, must (1) be made in
writing, (2) be delivered at least 12 months prior to date as of which the
Participant’s Retirement Plan-Related Tophat Benefit would otherwise commence to be paid
hereunder, and (3) delay commencement of payment of such Retirement Plan-Related
Tophat Benefit for at least five years from the date payment of such Retirement
Plan-Related Tophat Benefit would otherwise have commenced. Notwithstanding the foregoing,
a Participant who has elected under Section 3.2(b) to receive a distribution in the form of
a life annuity, a ten-year period certain and life annuity or either joint and survivor
annuity form may elect to change from that form to any other annuity form at any time prior
to the commencement of the receipt of Retirement Plan-Related Tophat Benefit hereunder.
For example, a Participant who has elected to receive his Retirement Plan-Related Tophat
Benefit in the form of an annuity just

7

 

for his life may change that election to a joint and survivor annuity without the 12
months advance notice and five year delay in commencement of payments described in this
subclause (iv).

     2.4 Distribution of TDSP-Related Tophat Benefit.

     (a) Benefits Accrued Prior to August 1, 2005. The following rules shall apply with
respect to the TDSP-Related Tophat Benefits accrued prior to August 1, 2005:

     (i) The TDSP-Related Tophat Benefit accrued by a Participant who previously elected to
receive such benefit upon Termination of Employment or Retirement shall be distributed to
such Participant as soon as practicable after July 31, 2005 during the calendar year 2005;
and

     (ii) The TDSP-Related Tophat Benefit accrued by a Participant who previously elected
to receive such benefit on an annual basis shall be distributed to such Participant, to the
extent not previously distributed, in August 2005.

     (b) Benefits Accrued After July 31, 2005. The TDSP-Related Tophat Benefit accrued by
a Participant in any calendar year with respect to services after July 31, 2005 shall be
distributed in a lump sum payment no later than March 15 of the calendar year following the
calendar year in which such benefit is accrued.

ARTICLE 3

Participants’ Termination of Employment

     3.1 TDSP-Related Tophat Benefits.

     (a) Termination. If the Participant Retires or incurs a Termination of Employment by
means other than death, such Participant shall receive a lump sum payment equal to the value, as of
the date of such Termination of Employment or Retirement, of the Participant’s TDSP-Related Tophat
Benefit with respect to the year of Termination of Employment or Retirement. Such TDSP-Related
Tophat Benefit shall be distributed 30 days after such Termination of Employment or Retirement.

     (b) Death. If the Participant incurs a Termination of Employment by reason of death,
his or her Beneficiary shall receive a lump sum payment equal to the value, as of the date of such
Termination of Employment, of the Participant’s TDSP-Related Tophat Benefit with respect to the
year of such Termination of Employment. Such benefit shall be paid 60 days after the Participant’s
date of death.

8

 

     3.2 Retirement Plan-Related Tophat Benefits.

     (a) Termination.

     (i) If the Participant incurs a Termination of Employment by means other than death,
and the Participant is not vested in his or her benefits under the Retirement Plan, such
Participant shall receive no benefit under this Plan.

     (ii) If the Participant incurs a Termination of Employment after January 1, 2005 other
than due to death, is then less than 55 years old and is vested in his or her benefits
under the Retirement Plan, such Participant shall receive a lump sum payment on the six
month anniversary of the Participant’s Termination of Employment in an amount equal to the
present value of such Retirement Plan-Related Tophat Benefit as of the date of such six
month anniversary. Such lump sum payment shall be determined using a discount rate equal
to the then-current yield to maturity on 30-year Treasury securities, or in such other
manner as the Committee reasonably determines

     (iii) Special Transitional Rules. Notwithstanding Section 3.2(a)(ii),
pursuant to the Transitional Rules the lump sum payment payable to a Participant under
Section 3.2(a)(ii) or 3.2(b) who (x) had a Termination of Employment in 2005 shall
be made 30 days following such Termination of Employment, on the basis that the Participant
shall have terminated participation in the Plan, and shall be valued as of the date of such
Termination of Employment, or (y) had a Termination of Employment prior to 2004 but
did not receive a lump sum payment prior to 2005, shall be paid on January 31, 2006, on the
basis that the Participant shall have terminated participation in the Plan as of January 1,
2006, and shall be valued as of January 1, 2006.

     (b) Retirement. When a Participant Retires after January 1, 2005, he or she shall
receive his or her Retirement Plan-Related Tophat Benefit in whichever of the available forms of
distribution (and with any actuarial reduction, as appropriate) shall be required under Section
3.2(a) or elected by such Participant in accordance with Section 2.3; provided that
a Participant who Retires and commences distribution of his Retirement Plan-Related Tophat Benefit
after the 409A Election Date, but fails to make a distribution election in accordance with Section
2.3 with respect to a payment commencing after the 409A Election Date shall be paid the present
value of his or her Retirement Plan-Related Tophat Benefit in the form of the four-year period
certain annuity referenced in subclause (i) below.

     (i) Four-Year Certain Annuity. The Retirement Plan-Related Tophat Benefit may
be paid in a four-year period certain annuity that is actuarially equivalent to the
lump-sum present value (calculated using the most recently published mortality table that
is generally accepted by American actuaries and

9

 

reasonably applicable to the Plan, and a 6 percent annual interest rate or discount
rate) of the Participant’s Retirement Plan-Related Tophat Benefit. Except to the extent
commencement of such benefits is delayed in accordance with Section 2.3(b)(iv), the first
payment will paid on the six-month anniversary of the date of the Participant’s Retirement;
provided that, at the time the Participant makes an election pursuant to Section 2.3(b), a
Participant who is not subject to the delay in commencement applicable under Section
2.3(b)(iv) may elect to have the first payment be payable on the later of (i) the
six-month anniversary of the Participant’s Termination of Employment with the Company and
its Subsidiaries and (ii) the first business day of the calendar year following the
Participant’s Retirement. Each installment after the first installment shall be paid on
each of the first three anniversaries of the date on which the first installment is due to
be paid.

     (ii) Single Life Annuity. The Retirement Plan-Related Tophat Benefit may be
paid in the form of a single life annuity for the Participant’s lifetime payable in equal
monthly installments.

     (iii) Ten-Year Period Certain and Life. The Retirement Plan-Related Tophat
Benefit may be paid in the form of an annuity in monthly installments for ten years from
the Participant’s Retirement and for life thereafter if the Participant survives such
ten-year period. If the Participant’s death occurs within such ten-year period, annuity
payments shall continue for the remainder of the ten-year period to the Participant’s
Beneficiary. To provide for the possibility that benefit payments will continue after the
Participant’s lifetime, the benefit payable to the Participant during his or her lifetime
under this Section 3.2(b)(iii) shall be reduced from the benefit that would have been
payable as a single life annuity under Section 3.2(b)(ii), based on the same factors that
would apply were such benefit payable under the Retirement Plan, including the
Participant’s age. No adjustment shall be made to the amount payable to the Participant in
the event that no survivor benefit should become payable because the Participant lives
longer than 10 years following the date the Retirement Plan-Related Tophat Benefit commence
to be paid.

     (iv) Joint and Survivor Annuity. The Retirement Plan-Related Tophat Benefit
may be paid in the form of a joint and survivor annuity so that the Participant receives a
monthly installment for the duration of the Participant’s life and the Participant’s
Beneficiary receives a monthly installment for the duration of his or her life in an amount
that is either 50% or 100% of the Participant’s monthly installment, as so elected by the
Participant. To provide for the possibility that benefit payments will continue after the
Participant’s lifetime, the benefit payable to the Participant during his or her lifetime
under this Section 3.2(b)(iv) shall be reduced from the benefit that would have been
payable as a

10

 

single life annuity under Section 3.2(b)(ii), based on the same factors that would
apply were such benefit payable under the Retirement Plan, including the Participant’s age
and that of his or her Beneficiary. No adjustment shall be made to the amount payable to
the Participant in the event that no survivor benefit should become payable because the
Beneficiary that the Participant selects shall not survive the Participant.
Notwithstanding the previous sentence, if the Beneficiary selected hereunder is the
Participant’s spouse and if said spousal Beneficiary dies prior to the fifth anniversary of
the Participant’s retirement date, the Participant’s benefit shall be adjusted to be that
which would have been payable as a single life annuity under Section 3.2(b)(ii), as of the
first of the month coinciding with or next following the spouse’s date of death. There
will be no actuarial adjustment made in calculating the benefit under this Section
3.2(b)(iv) as a result of the availability of this pop-up benefit other than as provided to
reflect commencement of benefits prior to the Normal Retirement Date.

     (v) Annuities. Unless the Participant shall have elected a later commencement
date pursuant to Section 2.3(b), including but not limited to Section 2.3(b)(iv), payment
of the first monthly installment of any annuity (other than the four-year period certain
annuity) shall commence on the six month anniversary of the Participant’s Retirement. The
first payment to be made hereunder in respect of any annuity shall be equal to the sum of
(i) the monthly payments that would have been made to such Participant from the
date of his Retirement (but for the six month delay required to comply with Section 409A of
the Code), and (ii) an amount of interest on each monthly payment referenced in
subclause (i), at the short-term applicable federal rate (within the meaning of Section
1274(d) of the Code), compounded semi-annually, in effect for January in the calendar year
in which the Participant Retires (or at such other rate as the Committee shall specify from
time to time), from the date such payment would have been made to the six month anniversary
of such Retirement. Each subsequent payment of any monthly annuity payment will be in the
amount, and paid at the time, it is otherwise payable without regard to the six month delay
in payment required hereunder. Notwithstanding the preceding sentence, with respect to a
Retirement that occurred in 2005, amounts that would have been payable for the lesser of
(i) the six months following such Retirement or (ii) through December 31,
2005, may be paid in accordance with the 409A Transition Rules at any time during 2005, on
the basis that such payment is a partial cancellation of such Participant’s participation
in the Plan.

     (vi) Survivor Benefits. If the Participant’s Retirement Plan-Related Tophat
Benefit is payable to the Participant in the form of the four-year certain annuity, and the
Participant dies after Retirement but prior to the date the last installment of such
benefit is paid, any installments remaining to be paid at the

11

 

date of the Participant’s death will be paid to the Participant’s Beneficiary at the
same time and in the same amounts as they would have been paid to the Participant. If the
Participant has Retired and selected an optional form of distribution (other than the
four-year period certain annuity) under which a portion of such Retirement Plan-Related
Tophat Benefit is eligible to be paid to his Beneficiary after the Participant’s death,
such benefits shall be paid in accordance with the terms of the form of distribution
elected by the Participant; that is (i) with respect to any remaining payments
related to the minimum 120 payments payable under the Ten-Year Certain and Life Option,
such remaining monthly payments shall continue to be paid to the Participant’s Beneficiary
at the same time and in the same amounts as they would have been payable to the
Participant, until a total of 120 monthly payments have been made to the Participant and
the Participant’s Beneficiary (at which time payment to the Beneficiary will cease) and
(ii) with respect to either joint and survivor annuity options, in the form of an
annuity for the lifetime of the Participant’s Beneficiary (if living at the time of the
Participant’s death) in a monthly amount that is equal to the percentage (50% or 100%) of
the monthly benefit payable to the Participant immediately prior to his or her death that
was elected by the Participant pursuant to Section 3.2(b)(iv). In the event that a
Participant dies within the six month period following Retirement and has elected to
receive his or her Retirement Plan-Related Tophat Benefit in a form of an annuity (other
than the four-year period certain annuity) that provides for survivor benefits to be paid
following his death, any survivor benefit payable to the Participant’s Beneficiary in
respect of the Retirement Plan-Related Tophat Benefit shall commence on the first day of
the month following the Participant’s death and the Participant’s Beneficiary shall
immediately receive any benefits that would have been payable to the Participant assuming
payment to the Participant had commenced without delay following his Retirement, including,
where applicable, interest at the rate specified in Section 3.2(b)(v) for the period of any
such delay in payment.

     (vii) Right to Adjust. The Committee shall have the right to adjust
Retirement Plan-Related Tophat Benefit payable under this Plan to correct errors, and/or to
provide uniform treatment of Participants, retired Participants or Beneficiaries.

     (c) Death.

     (i) If the Participant incurs a Termination of Employment by reason of death, and the
Participant has no surviving spouse, no benefits shall be paid with respect to the
Participant under this Plan.

     (ii) If the Participant incurs a Termination of Employment by reason of death, and the
Participant has a surviving spouse, such surviving spouse shall receive a Retirement
Plan-Related Tophat under this Plan if and to the extent he

12

 

or she (A) receives a spouse’s pre-retirement death benefit under the
Retirement Plan and (B) such pre-retirement death benefit is less than the
pre-retirement death benefit that would have been payable but for the operation of Legal
Limits. The benefit payable under this Section 3.2(c)(ii) shall equal the excess of
(A) the pre-retirement death benefit that would have been payable under the
Retirement Plan disregarding the Legal Limits over (B) the pre-retirement
death benefit actually payable under the Retirement Plan, and shall be paid in the form of
an annuity over the life of the surviving spouse. Such annuity shall commence within 60
days after the Participant’s date of death. The annuity payable to the surviving spouse
shall be based on the actuarial assumptions contained in the Retirement Plan.

     (iii) If a Participant incurs a Termination of Employment or Retires other than due to
death and is to receive payment of the Retirement Plan-Related Tophat in a lump sum under
Section 3.2(a) or in an annuity without a survivor benefit, and dies prior to payment of
such lump sum or commencement of such annuity due to the six-month delay in payment
required under either such Section, such lump sum or the amount that would have been
payable to such Participant as an annuity (with interest determined as provided above in
Section 3.2(b)(v)) shall be paid to such Participant’s Beneficiary on the six month
anniversary of the Participant’s Termination of Employment or Retirement, as the case may
be.

     3.3 Lump Sum Cash-Out of De Minimis Tophat Benefits. Notwithstanding any other
provision herein to the contrary, a Participant who Retires or incurs a Termination of Employment
and the sum of whose TDSP-Related Tophat Benefit and Retirement Plan-Related Tophat Benefit do not
together exceed the amount limitation applicable to accelerated cash-out of de minimis payments
permitted under Section 409A of the Code and the IRS guidance thereunder, shall be paid the value
of his or her tophat benefits hereunder in a lump sum on or before the later of (i)
December 31 of the calendar year in which the Termination of Employment or Retirement occurs or
(ii) the date that is 21/2 months after the date of the Termination of Employment or
Retirement.

ARTICLE 4

Beneficiary Designation

     4.1 Beneficiary Designation. Except with respect to benefits hereunder that are
payable solely to a surviving spouse, each Participant shall have the right, at any time, to
designate any person, persons or entity as his or her primary and secondary Beneficiary or
Beneficiaries to receive amounts payable under the Plan.

     4.2 Change of Beneficiary Designation. Any Beneficiary designation may be changed by
a Participant at any time by executing and filing a form prescribed by the Committee. The filing
of a new Beneficiary designation form will cancel all Beneficiary designations previously filed.
The Committee shall be entitled to rely on the last

13

 

designation filed by the Participant prior to his or her death. In addition, the Committee
may provide that the Beneficiary designation made under the DCP and/or Retirement Plan shall apply
to the respective tophats that may be provided under this Plan.

     4.3 No Beneficiary Designation. If a Participant fails to designate a Beneficiary in
accordance with Section 4.1, or if all designated Beneficiaries predecease the Participant or die
prior to complete distribution of the benefits (if any) payable under the Plan upon the
Participant’s death, then the Participant’s designated Beneficiary shall be deemed to be the
Participant’s surviving spouse. If the Participant has no surviving spouse, any benefits payable
under the Plan upon the Participant’s death shall be paid to the personal representative, executor
or administrator of the Participant’s estate.

     4.4 Effect of Payment. The payment of benefits under the Plan to the named
Beneficiary shall completely discharge the Employer’s obligations under this Plan.

ARTICLE 5

Termination and Modification

     5.1 Termination and Amendment. The Company reserves the right to terminate or amend
the Plan in whole or in part at any time. Such termination or amendment shall have a binding
effect on Participants and their Beneficiaries. Upon termination of the Plan, the Participants’
accounts shall be paid out in accordance with the distribution provisions contained in the Plan
immediately prior to such termination.

     5.2 Limited Power of President to Amend Plan. The President is empowered to amend,
restate or otherwise change the Plan (i) as counsel may advise to be necessary or
appropriate in order to ensure that the Plan continues to operate as a plan of deferred
compensation for tax purposes, remains exempt from many of the provisions of ERISA and otherwise
continues to fulfill the purposes for which the Plan was adopted and intended, (ii) as he
or she may deem necessary in order to make technical or clarifying changes not inconsistent with or
in order to fulfill the purposes of the Plan, (iii) as counsel may advise to be necessary
to reflect new or revised Legal Limits, and (iv) in other respects except as will
materially increase the cost of the Plan to the Company or its subsidiaries or the benefits of the
Plan to Participants.

ARTICLE 6

Administration

     6.1 Committee Duties. This Plan shall be administered by a Committee, the members of
which shall be appointed by the Board of Directors of the Company. The Committee shall have the
authority to make, amend, interpret, and enforce all appropriate rules, regulations, and procedures
for the administration of this Plan, and to decide or resolve any and all questions including
interpretations of this Plan, as may arise in connection with the Plan. Members of the Committee
who are eligible to participate in

14

 

the Plan may participate to the same extent as other Participants but shall not take part in
any determination directly relating only to their own participation or benefits.

     6.2 Agents. In the administration of this Plan, the Committee may, from time to time,
employ agents, including employees of the Company and Participants, and may delegate to them such
administrative duties as it sees fit, and may from time to time consult with counsel who may be
counsel to the Employer.

     6.3 Binding Effect of Decisions. The decision or action of the Committee with respect
to any question arising out of or in connection with the administration, interpretation and
application of the Plan and the rules and regulations promulgated hereunder shall be final,
conclusive and binding upon all persons having any interest in the Plan.

     6.4 Indemnity of Committee. The Company and Employer shall indemnify and hold
harmless the members of the Committee and their agents and delegates against any and all claims,
losses, damage, expense (including counsel fees) or liability arising from any action or failure to
act with respect to this Plan, except in the case of willful misconduct by the Committee or any of
its members or agents.

     6.5 Section 409A of the Code. Notwithstanding anything herein to the contrary,
neither the Committee nor any delegate thereof shall take any action under the Plan, including
without limitation pursuant to this Section 6, which would result in the imposition of an
additional tax under section 409A of the Code on a Participant.

ARTICLE 7

Miscellaneous

     7.1 Unsecured General Creditor. Participants and their Beneficiaries, heirs,
successors and assigns shall have no legal or equitable rights, interest or claims in any property
or assets of any Employer, nor shall they be Beneficiaries of, or have any rights, claims or
interests in any life insurance policies, annuity contracts or the proceeds therefrom owned or
which may be acquired by the Employer (“Policies”). Such Policies or other assets of the
Employer shall not be held under any trust for the benefit of Participants, their Beneficiaries,
heirs, successors or assigns, or held in any way as collateral security for the fulfilling of the
obligations of the Employer under this Plan. Any and all of the Employer’s assets and Policies
shall be, and remain, the general assets of the Employer. The Employer’s obligation under the Plan
shall merely constitute an unfunded and unsecured promise of the Employer to pay money in the
future.

     7.2 Nonassignability. Neither a Participant nor any other person shall have any right
to sell, assign, transfer, pledge, mortgage or otherwise encumber, hypothecate or convey in advance
of actual receipt, the amounts, if any, payable hereunder, or any part thereof or interest therein.
No part of the amounts payable shall, prior to actual

15

 

payment, be subject to seizure or sequestration for the payment of any debts, judgments,
alimony or separate maintenance owed by a Participant or any other person, nor be transferable by
operation of law in the event of a Participant’s or any other person’s bankruptcy or insolvency.

     7.3 Not a Contract of Employment. The terms and conditions of this Plan shall not be
deemed to constitute a contract of employment between the Employer and the Participant, and the
Participant (or his or her Beneficiary) shall have no rights against the Employer except as may
otherwise be specifically provided herein. Moreover, nothing in this Plan shall be deemed to give
a Participant the right to be retained in the service of the Employer or to deny to the Employer
the right to discipline a Participant (including reducing his or her salary) or discharge him or
her at any time.

     7.4 Health Information. The Participant shall provide to the Company, if so requested
and as a precondition for Plan participation, all health information and other information as the
Company may require in order to purchase Policies.

     7.5 Governing Law. The provisions of the Plan shall be construed and interpreted
according to the laws of the State of New York.

     7.6 Withholding. All payments that are to be made by an Employer to a Participant
shall be subject to withholding for any and all taxes as the Employer in its discretion deems
appropriate.

     7.7 Binding Effect. The provisions of this Plan shall bind the Participant and his or
her Beneficiaries, and shall bind and inure to the benefit of the Employer and its successors and
assigns.

     7.8 Borrowing. No portions of any accounts may be borrowed by a Participant or his or
her Beneficiaries under this Plan.

     7.9 Validity. In case any provision of this Plan shall be illegal or invalid for any
reason, said illegality or invalidity shall not affect the remaining parts hereof, but this Plan
shall be construed and enforced as if such illegal and invalid provision had never been inserted
herein.

     7.10 Incapacity of Person Entitled To Payment. If the Committee shall reasonably
determine, upon evidence satisfactory to it, that it is not desirable, because of the incapacity of
the person who shall be entitled to receive any payment in accordance with the provisions of the
Plan, to make such payment directly to such person, the Committee may apply such payment for the
benefit of such person in any way that the Committee shall deem advisable, or the Committee may
make such payment to any third person who, in the judgment of the Committee, will apply such
payment for the benefit of the person entitled thereto. Such payment for the benefit of the person
entitled thereto, or

16

 

to a third person for his or her benefit, shall be a complete discharge of all liability with
respect to such payment. The Committee may retain any amount that would otherwise be payable in
accordance with the provisions of the Plan to a person who may be under legal disability until a
representative of such person competent to receive such payment on his or her behalf shall have
been appointed pursuant to law.

     7.11 Captions. The captions of the articles, sections and paragraphs of the Plan are
for convenience only and shall not control or affect the meaning or construction of any of its
provisions.

     7.12 Construction. Whenever any words are used herein in the singular or in the
plural, they shall be construed as though they were used in the plural or the singular, as the case
may be, in all cases where they would so apply.

17EX-10.4

 

Exhibit 10.4

NATIONAL FUEL GAS COMPANY

AND PARTICIPATING SUBSIDIARIES

EXECUTIVE RETIREMENT PLAN

Amended and Restated as of September 20, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE	 	PAGE NO.
	 
	 	 
	ARTICLE 1 Purpose

	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 Definitions

	 	 	1	 
	 
	 	 	 	 
	ARTICLE 3 Determination of Retirement Benefits

	 	 	7	 
	 
	 	 	 	 
	ARTICLE 4 Vesting; Forfeiture

	 	 	11	 
	 
	 	 	 	 
	ARTICLE 5 Form of Payment of Benefits

	 	 	12	 
	 
	 	 	 	 
	ARTICLE 6 Source of Payment

	 	 	17	 
	 
	 	 	 	 
	ARTICLE 7 Administration of the Plan

	 	 	17	 
	 
	 	 	 	 
	ARTICLE 8 Amendment and Termination

	 	 	19	 
	 
	 	 	 	 
	ARTICLE 9 General Provisions

	 	 	20	 

 i 

 

 

ARTICLE 1

PURPOSE

     1.1 National Fuel Gas Company established this National Fuel Gas Company and Participating
Subsidiaries Executive Retirement Plan effective as of February 19, 1987 for the purpose of
attracting and retaining executives, and for these additional purposes: (1) to provide
retirement benefits to eligible employees in addition to basic retirement benefits provided them
under the National Fuel Gas Company Retirement Plan as it may be amended and restated; (2)
to provide retirement benefits to such employees to make up for benefit reductions, if any, under
the National Fuel Gas Company Retirement Plan caused by participation in the National Fuel Gas
Company Deferred Compensation Plan, as it may be amended and restated; (3) to provide
retirement benefits to such employees without regard to the $200,000 limit on qualified plans’
covered compensation that became effective respecting the National Fuel Gas Company Retirement Plan
effective July 1, 1989 (and as that limit may change from time to time); and (4) to provide
to such employees benefits which would have been payable from the tax-exempt trust under the
National Fuel Gas Company Retirement Plan but for the limitations placed by Section 415 of the Code
on benefits payable and contributions made with respect to such employees under such plans.

     1.2 The National Fuel Gas Company and Participating Subsidiaries Executive Retirement Plan is
intended to constitute an unfunded deferred compensation plan under Section 201(2) of the Act and
the Company’s obligation to pay benefits hereunder, if any, is unfunded and unsecured.

     1.3 The National Fuel Gas Company and Participating Subsidiaries Executive Retirement Plan has
been amended to comply with the requirements of Section 409A of the Code.

ARTICLE 2

DEFINITIONS

     When used herein, the following terms shall have the following meanings:

     2.1 Act means the Employee Retirement Income Security Act of 1974, as amended from
time to time.

     2.2 Annual Cash Compensation with respect to any Member shall include the following:

 

 

     (i) The Member’s base salary, whether or not the receipt of a portion thereof has been
deferred;

     (ii) The Member’s compensation (whether or not the receipt of all or a portion thereof
has been deferred) under National Fuel Gas Company’s short-term annual incentive program,
known as the Annual At Risk Compensation Incentive Program (“AARCIP”) or any
successor program thereto; and

     (iii) The Member’s other performance-related lump sum compensation (i.e. lump sum
payments other than expense or tuition reimbursements, moving expense reimbursements, lump
sum payments for eligible unused vacation, worker’s compensation payments, award payments
for suggestions, severance payments or any other non-performance related lump sum payments)
made on or after August 1, 1997.

The Member’s Annual Cash Compensation shall also exclude all commissions, stock, option or SAR
awards, restricted stock awards, special allowances, supplemental compensation, any payment under
the National Fuel Gas Company Performance Incentive Program and any other extra compensation or
incentives or bonuses not expressly included in Annual Cash Compensation pursuant to the foregoing
provisions of this Section 2.2.

     2.3 Basic Pension Plan means the National Fuel Gas Company Retirement Plan, as amended
and restated from time to time.

     2.4 Basic Pension Plan Benefit means the benefit, stated as a monthly annuity for the
Member’s life, commencing at the Member’s Normal Retirement Date, under which the annual payments
shall equal the Benefit Base as determined under the Basic Pension Plan, taking into account the
effect, if any, of the Benefit Limitations and the fact that deferrals under the National Fuel Gas
Company Deferred Compensation Plan are excluded from the definition of Final Average Pay under the
Basic Pension Plan.

     2.5 Beneficiary means the person or persons entitled to receive the amount, if any,
payable under the Plan upon the death of a Member or retired Member in the Plan in accordance with
the form of benefit distribution selected by the Member pursuant to Sections 5.2 and 5.3.

     2.6 Benefit Limitations means (i) the maximum “annual benefit” payable under
the Basic Pension Plan in accordance with Section 415 of the Code and the implementing provisions
of the Basic Pension Plan (as they operate in conjunction with the relevant provisions of other
Company employee benefit plans), and (ii) the maximum amount of annual compensation of an
employee that may be taken into account under the Basic Pension Plan in accordance with Section
401(a)(17) of the Code, as amended and supplemented, and the implementing provisions of the Basic
Pension Plan.

2

 

     2.7 Board of Directors means the Board of Directors of National Fuel Gas Company.

     2.8 Code means the Internal Revenue Code of 1986, as amended from time to time.

     2.9 Committee means the committee appointed from time to time by the Board of
Directors to administer the Plan.

     2.10 Company means National Fuel Gas Company and each of the following subsidiaries,
which participate in the Plan: National Fuel Gas Distribution Corporation, National Fuel Gas
Supply Corporation, Seneca Resources Corporation, National Fuel Resources Inc., Penn-York Energy
Corporation, Empire Exploration, Inc. and Horizon Energy Development, Inc., each of which has
adopted or has indicated that it will adopt the Plan.

     2.11 Early Retirement Date shall be the Retirement Date selected by the Member that is
no earlier than the first day of the calendar month immediately following or coinciding with the
Member’s 55th birthday, or any first of a month thereafter, but prior to the Member’s Normal
Retirement Date, provided the Member is Vested in either or both the Top-Hat Benefit or the
Supplemental Benefit.

     2.12 Employment Year is the consecutive 12-month period commencing on the date on
which the Member commenced employment with a Company, and each subsequent 12-month period
commencing on each anniversary thereof.

     2.13 Final Average Pay means an amount equal to the average of the Annual Cash
Compensation payable by the Company to a Member for the 60 consecutive month period during the 120
consecutive month period immediately preceding the date the Member retires which results in the
Member receiving the highest average. If an AARCIP or other annual performance bonus is granted
following the Member’s retirement date, unless such payment is expressly excluded from
consideration in the computation of the Member’s benefits, that award shall be used in determining
the Member’s Final Average Pay, if it is payable in connection with employment periods included in
the 60-month period referred to above. In this event, the Member’s Retirement Benefits shall be
increased, once the effect of such award is determined, and the increase shall be made retroactive
to the Member’s Retirement Date, without interest (provided that no such retroactive application
shall have the effect of accelerating the date at which Retirement Benefits shall commence to be
paid in accordance with Section 5.2).

     Notwithstanding the preceding paragraph of this Section 2.13, if any such post retirement
AARCIP award included in the definition of Annual Cash Compensation is used in determining Final
Average Pay hereunder, AARCIP awards relating to no more

3

 

than five of National Fuel Gas Company’s fiscal years may be used in determining Final Average
Pay. An example of the effect of this provision is as follows. Assume that a Member retires on
October 1, 2006, and that his salary and AARCIP awards were as follows for the following calendar
year:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	AARCIP Award (relating to
	 	 	 	 	 	 	fiscal year ending September
	 	 	Salary	 	30 but paid in December)
	2001
	 	$	480,000	 	 	$	120,000	 
	2002
	 	$	540,000	 	 	$	150,000	 
	2003
	 	$	600,000	 	 	$	180,000	 
	2004
	 	$	660,000	 	 	$	210,000	 
	2005
	 	$	780,000	 	 	$	240,000	 
	2006
	 	$	840,000	 	 	$	270,000	 

     This Member’s Final Average Pay would be $876,000 computed as follows:

[9/12 ($840,000) + 12/12 ($780,000) + 12/12 ($660,000) + 12/12 ($600,000) + 12/12
($540,000) + 3/12 ($480,000) + $270,000 + $240,000 + $210,000 + $180,000 + $150,000] ÷ 5.

     2.14 409A Election Date means December 31, 2007 or such other date as the Company
shall determine to be the latest date that benefits payable under the Plan may commence to be paid
based on the Member’s election as to the form and timing of payment in respect of his or her
benefits payable under the Basic Pension Plan without violating the election requirements
applicable under Section 409A of the Code and any regulations, proposed regulations or other
guidance promulgated thereunder.

     2.15 Member means any person employed by a Company who is designated as a Member by
the Chief Executive Officer of National Fuel Gas Company.

     2.16 Normal Retirement Date is the first day of the month coinciding with or
immediately following the Member’s 65th birthday.

     2.17 Plan means the National Fuel Gas Company and Participating Subsidiaries Executive
Retirement Plan as set forth herein and as amended and restated from time to time.

     2.18 Retirement Benefits means the benefits payable under this Plan.

     2.19 Retirement Date is the date with respect to which payment of Retirement Benefits
under the Plan commence (which for this purpose shall be determined without regard to any six-month
delay pursuant to Section 5.1 hereof).

4

 

     2.20 Social Security Benefit means the annual amount estimated by the Committee to be
payable to a Member under the Social Security Act of 1935, as amended, at the Member’s Retirement
Date, calculated on the assumption that the Member will not receive any future wages that would be
treated as such for purposes of that act. If a Member’s Retirement Date precedes his attainment of
age 62, the amount estimated to be payable to the Member at age 62 (without assuming any cost of
living increases) shall be reduced as follows. The percentage early retirement factor applicable
at age 62 (e.g., 80%) shall be further reduced by .75% per month for the first 24 months, and by
        .5% per month for the remaining months, if any, by which the Member’s Retirement Date precedes his
attainment of age 62. The Social Security Benefit, once calculated, will be frozen as of the
Member’s Retirement Date. For example, assume that the Member retired on his 59th birthday, and
that his estimated Social Security benefit beginning at age 65 (Primary Insurance Amount) was
$15,912 per annum. Using current Social Security tables, his age 62 early retirement factor (80%)
would be further reduced to 56%. This Member’s Social Security Benefit would therefore equal
$8,910.72.

     2.21 Social Security Offset means, in respect of a Member’s Supplemental Benefit, the
product of (i) .0125 times the Member’s Years of Service times (ii) the Member’s
Social Security Benefit.

     2.22 Supplemental Benefit means a benefit which is stated as a monthly annuity for the
Member’s lifetime, commencing at the Member’s Normal Retirement Date, under which the annual
payments shall equal the remainder of (1) minus (2) below, where (1) and (2) are:

	 	(1)	 	the Member’s Total Benefit Base;
	 
	 	(2)	 	the sum of

	 	(i)	 	the Member’s Social Security Offset and
	 
	 	(ii)	 	the Member’s Basic Pension Plan Benefit.

If the remainder of (1) minus (2) is negative, the Member’s Supplemental Benefit shall be zero.

     2.23 Termination of Employment means the termination of a Member’s employment with the
Company and each other entity which is in the same controlled group of affiliated employers as the
Company, as determined in accordance with the rules under Section 414(b) and (c) of the Code (the
“409A Service Recipients”); provided, however, that in the case of any Member who ceases to
be an employee but continues to provide services to any of the 409A Service Recipients following
his termination of employment, or is reasonably expected (at the time of such termination of
employment) to provide services to any of the 409A Service Recipients within 12 months of such

5

 

termination of employment (a “Continuing Service Member”), the term Termination of
Employment (and any similar terms used in this Plan) shall be deemed to refer to the date at which
such Member incurs a “separation from service,” within the meaning of Section 409A of the Code and
the regulations promulgated thereunder, from the 409A Service Recipients. This means that rather
than being entitled to receive a distribution hereunder upon, or at a specified time following, a
Termination of Employment, a Continuing Service Member shall only be entitled to receive such
distribution upon, or at a specified time following, such a separation from service.

     2.24 Top-Hat Benefit means a benefit which is stated as a monthly annuity for the
Member’s life, commencing at the Member’s Normal Retirement Date, under which the annual payments
shall equal the remainder of (1) minus (2) below, where (1) and (2) are:

	 	(1)	 	the Member’s Benefit Base as determined under the Basic Pension Plan, but
without reduction on account of Benefit Limitations and adjusted as if deferrals
under the National Fuel Gas Company Deferred Compensation Plan were not excluded
from the definition of Final Average Pay under the Basic Pension Plan and
	 
	 	(2)	 	the Member’s Basic Pension Plan Benefit.

     2.25 Total Benefit Base means, with respect to a Vested Member, a monthly annuity for
the Member’s life, commencing at his Normal Retirement Date, under which the annual payments shall
equal an amount calculated by multiplying the sum of (1) and (2) by (3), where (1), (2) and (3)
are:

	 	(1)	 	.0197 times the Member’s Years of Service not in excess of 30;
	 
	 	(2)	 	.0132 times the Member’s Years of Service, if any, in excess of 30 (but not to
exceed 10);
	 
	 	(3)	 	the Member’s Final Average Pay.

     2.26 Vesting

     (a) A Member’s Top-Hat Benefit shall vest in the same manner and subject to the same service
requirements and/or other conditions that apply to become vested in the retirement benefits
provided under the Basic Pension Plan.

     (b) A Member’s Supplemental Benefit shall vest on the later of (i) the first of the
month coinciding with or immediately following his 55th birthday or (ii) the date on which
the Member has completed five Years of Service with a Company.

     A “Vested” Member is a Member with respect to whom “Vesting” has occurred.

6

 

     2.27 Years of Service equals the number of Employment Years completed by a Member.
With respect to an Employment Year in which a Member completed 1,000 or more hours, but less than a
full year of service, the Member shall be credited with a fractional Year of Service equal to the
quotient of (i) the number of full months of the Member’s service during such Employment Year and
(ii) 12. Years of Service shall not exceed 40. Notwithstanding the foregoing sentence, if a
Member retires prior to having completed 1,000 hours in his final Employment Year, the Member shall
be credited with a fractional Year of Service as calculated above. No more than one Year of Service
shall be credited in any Employment Year.

     2.28 In construing the Plan, masculine pronouns shall refer to both males and females, as
appropriate.

ARTICLE 3

DETERMINATION OF RETIREMENT BENEFITS

     3.1 Introduction. The Plan provides a Member with a two-part benefit: the Top-Hat
Benefit and the Supplemental Benefit. The Top-Hat Benefit makes a Member whole for any reduction
in the regular pension he receives under the Basic Pension Plan resulting from Internal Revenue
Code limitations and/or his participation in the National Fuel Gas Company Deferred Compensation
Plan. The Supplemental Benefit provides an additional retirement benefit to the Basic Pension
Plan.

     A Member who does not satisfy the requirements to Vest in a Top-Hat Benefit prior to the date
his service for the Company terminates shall receive no benefit under the Plan. A Member who Vests
in the Top-Hat Benefit, but does not Vest in the Supplemental Benefit, shall receive only a Top-Hat
Benefit. A Member who is Vested in both the Top-Hat Benefit and the Supplemental Benefit and who
terminates service with the Company after having attained an Early Retirement Date shall receive
the Top-Hat Benefit and a portion of the Supplemental Benefit, as described in Section 3.3.

     3.2 Benefit for Member Retiring at Normal Retirement Date. A Member who retires on or
after the Member’s Normal Retirement Date shall receive only the Supplemental Benefit if he shall
have Vested in such Supplement Benefit. A Member who retires on or after his Normal Retirement
Date, but has not Vested in the Supplement Benefit, shall receive the Top-Hat Benefit.

     3.3 Benefit for Members Terminating Service After Qualifying for Early Retirement.

     (a) The benefit payable under the Plan to a Vested Member whose Termination of Employment
occurs after the Member has satisfied the conditions to retire

7

 

at an Early Retirement Date shall equal the sum of (1) plus [(2) minus (3)], where (1), (2)
and (3) are:

	 	(1)	 	the product of (i) and (ii), where (i) and (ii) are

	 	(i)	 	the Member’s Top-Hat Benefit,
	 
	 	(ii)	 	the early retirement percentage that would be applicable to
the Member were the Top-Hat Benefit actually payable from the Basic
Pension Plan commencing on the date on which payment of the Top-Hat
Benefit is to commence hereunder (regardless of when payment of the Basic
Pension Plan Benefit actually commences);

	 	(2)	 	the product of (i) and (ii ), where (i) and (ii) are

	 	(i)	 	the remainder of (x) minus [the sum of (y) and (z)], where
(x), (y) and (z) are:

	 	(x)	 	the Member’s Total Benefit Base;
	 
	 	(y)	 	the amount determined under Section 3.3(a)(1);
	 
	 	(z)	 	(A) the Member’s Basic Pension Plan Benefit times (B) the
early retirement percentage that would be applicable to the Member
were the Basic Pension Plan to commence on the date on which payment
of the Top-Hat Benefit is to commence hereunder (regardless of when
payment of the Basic Pension Plan Benefit actually commences);

	 	(ii)	 	the Member’s Early Retirement Percentage as determined in
Section 3.3(b) below; and

	 	(3)	 	the Member’s Social Security Offset.

Notwithstanding the foregoing, if the remainder of subclause (2) minus subclause (3) above is less
than zero, then the Member shall receive (instead of the benefit calculated pursuant to the
foregoing formula) the benefit described in subclause (1) above.

8

 

     (b) The Early Retirement Percentage applicable under the Plan to the Member’s Supplemental
Benefit is determined in accordance with the following scale:

	 	 	 	 	 
	Retirement Age	 	Early Retirement Percentage
	65
	 	 	100	 
	64
	 	 	94	 
	63
	 	 	88	 
	62
	 	 	82	 
	61
	 	 	70	 
	60
	 	 	58	 
	59
	 	 	46	 
	58
	 	 	34	 
	57
	 	 	22	 
	56
	 	 	10	 
	55 years and 2 months
	 	 	0	 

     The Early Retirement Percentage determined in accordance with the above scale respecting ages
62, 63 and 64, shall be increased by 1/2 of 1% for each whole calendar month by which a Member’s
Early Retirement Date follows the first of the month coinciding with or immediately following his
62nd, 63rd, or 64th birthday, as the case may be. The Early Retirement Percentage determined in
accordance with the above scale respecting ages 55 years and 2 months, 56, 57, 58, 59, 60, and 61,
shall be increased by 1% for each whole calendar month by which his Early Retirement Date follows
the first of the month coinciding with or immediately following his 55 year and 2 month, 56th,
57th, 58th, 59th, 60th and 61st birthdays, as the case may be. Furthermore, the Early Retirement
Percentage shall be increased by .125% for each whole calendar month by which a Member’s Years of
Service exceed 30; provided, however, that this shall never result in an Early Retirement
Percentage in excess of 100%. (In the event a Member desires to retire on the earliest possible
Early Retirement Date, i.e., on the first of the month coinciding with or immediately following his
55th birthday, the increase in percentage as a result of Years of Service in excess of 30 shall be
made from a base percentage of -2%, in computing Early Retirement Percentage.)

     (c) The provisions of this Section 3.3 are illustrated by the following example. Assume that
(i) a Member has 30 Years of Service under this Plan (29 under the Basic Pension Plan) and a Final
Average Pay of $300,000; (ii) he desires to retire in 2006 at age 58 (10% reduction under the Basic
Pension Plan); (iii) the maximum amount of the Member’s Final Average Pay allowed to be taken into
account under the Basic Pension Plan applicable limits under Section 401(a)(17) of the Code is
limited to $220,000; and (iv) his Social Security Benefit was $15,000:

9

 

	 	 	 	 	 
	Step 1. Calculate the Top-Hat Benefit
	 	 	 	 
	 
	 	 	 	 
	[(.015 x $300,000) x 29] — the Member’s Basic Pension Plan Benefit
	 	 	 	 
	 
	 	 	 	 
	The Member’s Base Pension Plan Benefit is
	 	 	 	 
	[(.015 x $220,000) x 29]
	 	 	 	 
	($3,300) x 29 = $95,700
	 	 	 	 
	so the Top-Hat Benefit is
	 	 	 	 
	[(.015 x $300,000) x 29] -$95,700
	 	 	 	 
	[$4,500 x 29] — $95,700
	 	 	 	 
	$130,500 - 95,700=
	 	$	34,800	 
	 
	 	 	 	 
	Step 2. Adjust the Top-Hat Benefit for Early Retirement
	 	 	 	 
	 
	 	 	 	 
	$34,800 x .9 =
	 	$	31,320	 
	 
	 	 	 	 
	Step 3. Determine the Total Benefit Base
	 	 	 	 
	 
	 	 	 	 
	[(.0197 x $300,000) x 30]

$5,910 x 30 =
	 	$	177,300	 
	 
	 	 	 	 
	Step 4. Reduce the Total Benefit Base by the Top-Hat Benefit and the
	 	 	 	 
	Basic Pension Plan Benefit, each as Adjusted for Early Retirement
	 	 	 	 
	 
	 	 	 	 
	$177,300 - [Adjusted Top-Hat Benefit + Adjusted Basic Pension
	 	 	 	 
	Plan Benefit]
	 	 	 	 
	 
	 	 	 	 
	$177,300 - [$31,320 + (95,700 x .9)]
	 	 	 	 
	$177,300 - [$31,320 + 86,130]
	 	 	 	 
	$177,300 - $117,450 =
	 	$	59,850	 
	 
	 	 	 	 
	Step 5. Adjust Reduced Total Benefit Base for the Early
	 	 	 	 
	Retirement Percentage
	 	 	 	 
	 
	 	 	 	 
	$59,850 x .34 =
	 	$	20,349	 
	 
	 	 	 	 
	Step 6. Calculate the Social Security Offset
	 	 	 	 
	 
	 	 	 	 
	[(.0125 x 30) x $15,000]
	 	 	 	 
	(0.3750) x $15,000 =
	 	$	5,625	 

10

 

Step 7. Determine the ERP Benefit Payable

Add the Adjusted Top-Hat Benefit (shown in Step 2) and the Adjusted Total Benefit Base, (shown in
Step 5), then subtract the Social Security Offset (shown in Step 6)

	 	 	 	 	 
	($31,320 + 20,349) — $5,625

    $51,669- $5,625 =
	 	$	46,044	 

     3.4 Benefit for Members Terminating Service Before Qualifying for Early Retirement.
The benefit payable under the Plan to a Member whose Termination of Employment occurs before the
Member has attained an Early Retirement Date, but after the Member has Vested in his Top-Hat
Benefit, and who has elected to commence receipt of his Top-Hat Benefit at an Early Retirement Date
shall equal the Member’s Top-Hat Benefit adjusted to reflect the actuarial reduction therein for
early commencement of the benefit that would be applicable to the Member were the Top-Hat Benefit
actually payable from the Basic Pension Plan commencing on the date on which payment of the Top-Hat
Benefit is to commence hereunder (regardless of when payment of the Basic Pension Plan Benefit
actually commences).

     3.5 Late Retirement. A Member’s Years of Service shall be credited if they extend
beyond his Normal Retirement Date (but shall not exceed 40 in total), and the Final Average Pay
determination shall reflect such Years of Service. However, there shall be no actuarial adjustment
to his Additional Benefit Base on account of a Member’s retirement after Normal Retirement Date;
for such purpose the Additional Benefit Base hereunder shall be computed as if his late retirement
date were his Normal Retirement Date.

ARTICLE 4

VESTING; FORFEITURE

     4.1 Time of Vesting. No Retirement Benefits will be payable to or in respect of any
Member unless that Member remains employed by the Company until he is Vested in at least the
Top-Hat Benefit under this Plan.

     4.2 Misconduct. Notwithstanding Section 4.1 hereof, no Retirement Benefits will be
payable to or in respect of a Member whose employment is terminated by the Company for serious,
willful misconduct in respect of his obligations to the Company, including but not limited to the
commission of a felony or a perpetration of a common law fraud which has damaged, or is likely to
result in damage to, the Company (provided that, the same result shall obtain if, in the case of
Member who terminates service before the Company is aware or has a reasonable opportunity to act on
such conduct, the

11

 

Committee determines that the Member could have been terminated by the Company due to such
conduct in accordance with this Section 4.2.)

     4.3 Competition. If and so long as a Member or retired Member shall be employed by
any corporation, entity or individual which is then engaged in a business competitive with the
Company, or shall be engaged in any such business, or shall aid, advise or assist or attempt to
aid, advise or assist any corporation, individual or entity in engaging in any such business, or
shall endeavor, directly or indirectly, to interfere with the relations between the Company and any
customer or engage in any activity that would be deemed by the Committee in its sole discretion to
be detrimental to the Company’s best interests, the rights of such Member or retired Member to
Retirement Benefits, including the rights of any Beneficiary, shall be forfeited with the same full
force and effect as though the Retirement Benefits had not been granted under any of the provisions
of the Plan, unless the Committee determines that such activity is not detrimental to the best
interests of the Company; provided that from and after 60 days following cessation by the Member or
retired Member of such activity and written notice by him to the Committee, his right to receive
Retirement Benefits hereunder shall be restored, unless the Committee, in its sole discretion,
determines that the prior activity has caused substantial damage to the Company. Notwithstanding
anything else contained in this Section 4.3 to the contrary, this Section shall not apply following
the occurrence of a Change in Control.

ARTICLE 5

FORM OF PAYMENT OF BENEFITS

     5.1 Time of Distribution of Retirement Benefits. Retirement Benefits shall be payable
as soon as practicable after the Member’s Normal Retirement Date
or Early Retirement Date; provided
that after the 409A Election Date, no payment of benefits under this Plan shall commence prior to
the six-month anniversary of the date of the Member’s
Termination of Employment; and provided
further, that, to the extent that the immediately preceding proviso delays payment of the Member’s
Retirement Benefit, the Member shall be paid a lump sum, as soon as practicable (but not later than
30 days) after such six-month anniversary of the Member’s Termination of Employment, equal to the
sum of (i) the Retirement Benefits that would have been payable prior to the six month
anniversary of such Termination of Employment but for such mandatory delay in payment and
(ii) an amount of interest on the Retirement Benefits referenced in subclause (i), at the
short-term applicable federal rate (within the meaning of Section 1274(d) of the Code), compounded
semi-annually, in effect for January in the calendar year in which the Member’s Retirement Benefits
would have commenced but for such six month delay (or at such other rate as the Committee shall
specify from time to time), from the date such Retirement Benefits would otherwise have been paid
to the Member until the six month anniversary of the Member’s Termination of Employment.

12

 

     5.2 Elections with Respect to Distribution of Retirement Benefits. Retirement
Benefits shall be payable to or in respect of a Member eligible therefor in accordance with
distribution elections made by the Member. Such election must specify the date at which any
benefits payable to such Member under the Plan shall be payable, as well as the form in which such
benefits are to be provided from among the options available under, and described in, Section 5.3.
A Member who does not elect the date on which any benefits payable under the Plan shall commence to
be paid shall commence receipt of such benefits on the later of (i) the earliest date on
which the Member’s benefits hereunder could commence or (ii) the six-month anniversary of
the date of the Member’s Termination of Employment. The following rules shall apply with respect
to the distribution elections made in respect of the receipt of Retirement Benefits:

     (a) A Member who commences receipt of payment of his or her Retirement Benefit on or before
the 409A Election Date and, on the 409A Election Date, was receiving Retirement Benefits in the
same form of annuity as is applicable to the benefits payable to such Member under the Basic
Pension Plan shall continue to receive such benefit in the same manner and form as the benefit
received by such Member under the Basic Pension Plan.

     (b) A Member who is entitled to a Retirement Benefit with respect to any Years of Service
completed on or prior to the 409A Election Date, and who has not commenced receipt of a
distribution thereof prior to the 409A Election Date, shall make an election in accordance with
Section 5.3, on or prior to the 409A Election Date, regarding the form of distribution of such
Retirement Benefits, provided that such election shall also be applicable with
respect to any Retirement Benefits accrued by the Member under this Plan after the 409A Election
Date. A Member described in this Section 5.2(b) must also elect whether, if the Member terminates
employment prior to his Normal Retirement Date, distribution of his or her Retirement Benefits
shall commence as of an Early Retirement Date and, if so, when such benefits shall commence.

     (c) A Member who commences participation in the Plan after the 409A Election Date shall, on
the first date that such Member is eligible to commence participation in the Plan, make an election
in accordance with Section 5.3 regarding the distribution of his or her Retirement Benefit accrued
under this Plan and an election as to the date (which shall be at least six months) following the
Member’s Termination of Employment (or, if later, at the earliest date as of which such Member’s
benefits hereunder could otherwise commence) that such Member’s Vested Retirement Benefit, if any,
payable under the Plan is to commence to be paid.

     5.3 Forms of Payment. Unless a Member shall elect an alternative form of payment in
the manner described in Section 5.2, the Member’s Retirement Benefits shall be paid in the form
specified in Section 5.3(a). A Member may elect to receive benefits, by making an election within
the time period established under Section 5.2, in any of the

13

 

alternative forms described in Sections 5.3(b) through 5.3(d). Each form of benefit is
intended to be of actuarial equivalent value.

     (a) Normal Form of Payment. The normal benefit form for Retirement Benefits is a
four-year period certain annuity that is actuarially equivalent to the lump-sum present value
(calculated using the most recently published mortality table that is generally accepted by
American actuaries and reasonably applicable to the Plan, and a 6 percent annual interest rate or
discount rate) of (i) the Member’s Supplemental Benefit, if the Member is Vested therein or (ii)
otherwise, the Member’s Top-Hat Benefit. The first payment will paid on the six-month anniversary
of the date of the Member’s Retirement or Early Retirement; provided that, at the time the Member
makes an election pursuant to Section 5.2, the Member may elect to have the first payment be
payable on the later of (i) the six-month anniversary of the Member’s Termination of
Employment with the Company and its Subsidiaries and (ii) the first business day of the
calendar year following the Member’s Retirement or Early Retirement. Subsequent installments shall
be paid on each of the first three anniversaries of the date on which the first installment is due
to be paid. The Retirement Benefits of a Member who fails to make a timely distribution election
under Section 5.2 shall be paid in accordance with the normal benefit form provided for in this
Section 5.3(a).

     (b) Single Life Annuity. Retirement Benefits may be paid in the form of a single life
annuity for the Member’s lifetime payable in equal monthly installments which shall commence not
earlier than the six-month anniversary of the Retirement or Early Retirement of the Member, as
elected by such Member. The date on which such benefits commence to be paid shall be established
pursuant to the Member’s election or, in the absence of a timely election, pursuant to the default
provided under Section 5.2.

     (c) Ten-Year Period Certain and Life. Retirement Benefits may be paid in the form of
an annuity in monthly installments for ten years from the Member’s Retirement or Early Retirement,
as elected by such Member, and for life thereafter if the Member survives such ten-year period.
Such payments shall commence not earlier than the six-month anniversary of the Member’s Retirement
or Early Retirement, as elected by such Member. If the Member’s death occurs within such ten-year
period, annuity payments shall continue for the remainder of the ten-year period to the Member’s
Beneficiary. To provide for the possibility that benefit payments will continue after the Member’s
lifetime, the benefit payable to the Member during his or her lifetime under this Section 5.3(c)
shall be reduced from the benefit that would have been payable as a single life annuity under
Section 5.3(b), based on the same factors that would apply were such benefit payable under the
Basic Pension Plan, including the Member’s age. No adjustment shall be made to the amount payable
to the Member in the event that no survivor benefit should become payable because the Member lives
longer than 10 years following the date the Retirement Benefits commence to be paid. The date on
which such benefits commence to be paid shall be established pursuant to the Member’s

14

 

election or, in the absence of a timely election, pursuant to the default election provided under
Section 5.2.

     (d) Joint and Survivor Annuity. Retirement Benefits may be paid in the form of a
joint and survivor annuity so that the Member receives a monthly installment for the duration of
the Member’s life and the Member’s Beneficiary receives a monthly installment for the duration of
his or her life in an amount that is either 50% or 100% of the Member’s monthly installment, as so
elected by the Member. To provide for the possibility that benefit payments will continue after
the Member’s lifetime, the benefit payable to the Member during his or her lifetime under this
Section 5.3(d) shall be reduced from the benefit that would have been payable as a single life
annuity under Section 5.3(b), based on the same factors that would apply were such benefit payable
under the Basic Pension Plan, including the Member’s age and that of his or her Beneficiary. The
date on which such benefits commence to be paid shall be established pursuant to the Member’s
election or, in the absence of a timely election, pursuant to the default election provided under
Section 5.2. No adjustment shall be made to the amount payable to the Member in the event that no
survivor benefit should become payable because the Beneficiary that the Member selects shall not
survive the Member. Notwithstanding the previous sentence, if the Beneficiary selected hereunder
is the Member’s spouse and if said spousal Beneficiary dies prior to the fifth anniversary of the
Member’s retirement date, the Member’s benefit shall be adjusted to be that which would have been
payable as a single life annuity under Section 5.3(b), as of the first of the month coinciding with
or next following the spouse’s date of death. There will be no actuarial adjustment made in
calculating the benefit under this Section 5.3(d) as a result of the availability of this pop-up
benefit other than as provided to reflect commencement of benefits prior to the Normal Retirement
Date.

     5.4 Distribution of Benefits to Spouses/Beneficiaries. If the Member’s Retirement
Benefits are payable to the Member in the normal form, and the Member dies prior to the date the
last installment of such benefit is paid, any installments remaining to be paid at the date of the
Member’s death will be paid to the Member’s Beneficiary at the same time and in the same amounts as
they would have been paid to the Member. If the Member selects an optional form of distribution of
his or her Retirement Benefits such that a portion of such Retirement Benefits is eligible to be
paid to his Beneficiary after the Member’s death, such benefits shall be paid in accordance with
the terms of the form of distribution elected by the Member; that is (i) with respect to
any remaining payments related to the minimum 120 payments payable under the ten-year certain and
life option, such remaining monthly payments shall continue to be paid to the Member’s Beneficiary
at the same time and in the same amounts as they would have been payable to the Member, until a
total of 120 monthly payments have been made to the Member and the Member’s Beneficiary (at which
time payment to the Beneficiary will cease) and (ii) with respect to either joint and
survivor annuity options, in the form of an annuity for the lifetime of the Member’s Beneficiary
(if living at the time of the Member’s death) in a

15

 

monthly amount that is equal to the percentage (50% or 100%) of the monthly benefit payable to
the Member immediately prior to his or her death that was elected by the Member pursuant to Section
5.3(d). To the extent that payment of Retirement Benefits to a Member has been delayed from his
Termination of Employment pursuant to Section 5.1 and the Member dies prior to the time such
delayed payments shall have been made to the Member, the Member’s Beneficiary shall be paid a lump
sum, as soon as practicable (but not later than 60 days) after the Member’s death, equal to the sum
of (i) the Retirement Benefits that would have been payable to the Member prior to his
death but for such mandatory delay in payment and (ii) an amount of interest on the
Retirement Benefits referenced in subclause (i), at the short-term applicable federal rate (within
the meaning of Section 1274(d) of the Code), compounded semi-annually, in effect for January in the
calendar year in which the Member’s Retirement Benefits would have commenced but for such mandatory
delay (or at such other rate as the Committee shall specify from time to time), from the date such
Retirement Benefits would otherwise have been paid to the date of the Member’s death.

     5.5 Changes in Distributions Elections. A Member may only change an election
previously filed pursuant to Section 5.2 in accordance with the conditions specified in this
Section 5.5. Except as otherwise expressly provided below, any such change in such an election,
whether as to when payment of Retirement Benefits is to commence or the form of distribution of
such Retirement Benefits, must (1) be made in writing, (2) be delivered at least 12
months prior to date as of which the Member’s Retirement Benefits would otherwise commence to be
paid hereunder, and (3) delay commencement of payment of such Retirement Benefits for at
least five years from the date payment of such Retirement Benefits would otherwise have commenced.
Notwithstanding the foregoing, a Member who has elected to receive a distribution in the form of a
life annuity under Section 5.3(b), a ten-year period certain and life annuity under Section 5.3(c)
or either joint and survivor annuity form under Section 5.3(d) may elect to change from that form
to any other annuity form at any time prior to the commencement of the receipt of Retirement
Benefits hereunder. For example, a Member who has elected to receive his Retirement Benefits in
the form of an annuity just for his life may change that election to a joint and survivor annuity
without the 12 months advance notice and five year delay in commencement of payments described in
the second sentence of this Section 5.5.

     5.6 Right to Adjust. The Committee shall have the right to adjust Retirement Benefits
payable under this Plan to correct errors, and/or to provide uniform treatment of Members, retired
Members or Beneficiaries.

     5.7 Spouse’s Benefit. In the event of a Vested Member’s death prior to the
commencement of the receipt of Retirement Benefits hereunder, his spouse, if she shall survive him,
shall receive Retirement Benefits hereunder for her lifetime commencing as

16

 

of the first day of the month following the Member’s death equal to the greater of (i) or
(ii):

     (i) .50 times the Member’s Supplemental Benefit, except that if the Member’s surviving
spouse is more than five years younger than the Member, the .50 multiplier described in
this clause shall be reduced by .00125 for each month in excess of 60 that the surviving
spouse’s age is less than that of the Member. Thus, for example, the multiplier declines
to .30 if the surviving spouse is 220 months younger than the Member.

     (ii) 50% of the Retirement Benefit which the Member would have received had payment
thereof commenced on the day before the date of his death in the form of the Automatic
Joint and Survivor Annuity (as defined and described in the Basic Pension Plan), determined
without regard to whether the Member could have commenced such benefit on such date.

ARTICLE 6

SOURCE OF PAYMENT

     6.1 All payments provided for under the Plan shall be paid in cash from the general funds of
the Company; provided, however, that such payments shall be reduced by the amount of any payments
made to or in respect of a Member from any trust or special or separate fund established by the
Company to assure such payments. The Company shall not be required to establish a special or
separate fund or other segregation of assets to assure such payments, and, if the Company shall
make any investments to aid it in meeting its obligations hereunder, the Member and his Beneficiary
shall have no right, title, or interest whatever in or to any such investments except as may
otherwise be expressly provided in a separate written instrument relating to such investments.
Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be
construed to create a trust of any kind between the Company and any Member or Beneficiary. To the
extent that any Member or Beneficiary acquires a right to receive payments from the Company
hereunder, such right shall be no greater than the right of an unsecured creditor of the Company.

ARTICLE 7

ADMINISTRATION OF THE PLAN

     7.1 Committee to Administer. The Plan shall be administered by the Committee which
shall have full power and authority to interpret, construe and administer the Plan, and review
claims for benefits under the Plan, and the Committee’s

17

 

interpretations and constructions of the Plan and actions thereunder shall be binding and
conclusive on all persons and for all purposes.

     7.2 Agents. For purposes of the Act, the members of the Committee shall be the named
fiduciaries of the Plan for administration of the Plan (including but not limited to complying with
reporting and disclosure requirements and establishing and maintaining Plan records), and shall
engage such certified public accountants, who may be accountants for the Company, as it shall
require or may deem advisable for purposes of the Plan. The Committee may arrange for the
engagement of such legal counsel, who may be counsel for the Company, and make use of such agents
and clerical or other personnel as they each shall require or may deem advisable for purposes of
the Plan. The Committee may rely upon the written opinion of such counsel and the accountants
engaged by the Committee and may delegate to any agent, who may be a Company employee, or to any
sub-committee or member of the Committee, its authority 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 discretion of the Committee.

     7.3 Liability; Indemnity. To the maximum extent permitted by the Act, no member of
the Committee, nor any of their agents, including Company officers or employees, shall be
personally liable by reason of any contract or other instrument executed by any of them in their
capacity as members of the Committee or otherwise, nor for any mistake of judgment made in good
faith, and the Company shall indemnify and hold harmless, directly from its own assets, each member
of the Committee and each other officer, employee, or director of the Company to whom any duty or
power relating to the administration or interpretation of the Plan or to the management or control
of the assets of the Plan may be delegated or allocated, against any cost or expense (including
counsel fees) or liability (including any sum paid in settlement of a claim with the approval of
the Company) arising out of any act or omission to act in connection with the Plan unless arising
out of such person’s own fraud or bad faith. Said persons shall be entitled to rely conclusively
upon, and shall be fully protected in any action taken by them or any of them in good faith in
reliance upon, any table, valuation, certificate, opinion or report which shall be furnished to
them or any of them by an actuary, accountant, counsel or other expert who shall be employed or
engaged by them.

     7.4 Binding Effect of Decisions. The decision or action of this Committee with
respect to any question arising out of or in connection with the administration, interpretation and
application of the Plan and the rules and regulations promulgated hereunder shall be final,
conclusive and binding upon all persons having any interest in the Plan.

     7.5 Effect of Restatement. Notwithstanding anything else contained herein to the
contrary, in no event shall the restatement of this Plan as of September 20, 2007 reduce the amount
of Retirement Benefits payable to any Member hereunder, or

18

 

otherwise reduce the amount of such Member’s Final Average Pay, in either case below the
amount that would have applied under the terms of this Plan as in effect immediately prior to such
restatement.

     7.6 Section 409A of the Code. Notwithstanding anything herein to the contrary, the
Committee and any of its delegates shall use their commercially reasonable best efforts to
administer the plan in a manner that will cause the Plan and any payments to be made hereunder, to
comply with the requirements of Section 409A, with the intent of avoiding the imposition of an
additional tax under Section 409A of the Code on any Member.

ARTICLE 8

AMENDMENT AND TERMINATION

     8.1 General Power to Amend. Subject to the application of Article 4 in the situations
therein enumerated, the Plan may be amended, suspended or terminated, in whole or in part, by the
Board of Directors, and Members may be adversely affected thereby provided that such actions may
not deprive Vested Members of Retirement Benefits accrued until the date of such actions. In
addition, the rights of Vested Members may be affected if (i) failing to make changes would
be administratively burdensome; (ii) the Member voluntarily consents to such change in
writing; or (iii) if changes are required by law.

     8.2 Limited Power of the President. Notwithstanding Section 8.1, the President of
National Fuel Gas Company is empowered to amend, restate or otherwise change the Plan (i)
as counsel may advise to be necessary or appropriate in order to ensure that the Plan continues to
operate as a plan of deferred compensation for tax purposes in compliance with requirements of
Section 409A, remain exempt from many of the provisions of the Act and otherwise continues to
fulfill the purposes for which the Plan was adopted and intended; (ii) as he or she may
deem necessary in order to make technical or clarifying changes not inconsistent with or in order
to fulfill the purposes of the Plan; (iii) as counsel may advise to be necessary to reflect
the impact of Benefit Limitations, as they may change from time to time; and (iv) in other
respects except as will materially increase the cost of the Plan to the Companies or the benefits
of the Plan to Members or as will otherwise reduce the accrued benefits of any Member without his
or her consent.

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ARTICLE 9

GENERAL PROVISIONS

     9.1 Effect of Corporate Reorganization. This Plan shall be binding upon and inure to
the benefit of the Company and its successors and assigns and the Member, and his designees,
Beneficiaries, legal representatives and estate. Nothing in this Plan shall preclude the Company
from consolidating or merging into or with, or transferring all or substantially all of its assets
to, another corporation which assumes this Plan and all obligations of the Company hereunder. Upon
such a consolidation, merger or transfer of assets, and assumption of the Plan, the term “Company”
shall refer to such other corporation and this Plan shall continue in full force and effect.

     9.2 Right to Discharge Member. Neither the Plan nor any action taken hereunder shall
be construed as giving to a Member the right to be retained in the employ of the Company or as
affecting the right of the Company to discharge any Member, at any time without regard to the
effect such discharge would have upon his eligibility for or receipt of benefits under the Plan.

     9.3 Withholding. The Company may withhold from any benefits payable under this Plan
all federal, state, city or other taxes as shall be required (as determined by the Company)
pursuant to any law or governmental regulation or ruling.

     9.4 Assignability. No right to any amount payable at any time under the Plan may be
assigned, transferred, pledged, or encumbered, either voluntarily or by operation of law, except as
provided expressly herein as to payments to a Beneficiary or as may otherwise be required by law.
If, by reason of any attempted assignment, transfer, pledge, or encumbrance, or any bankruptcy or
other event happening at any time, any amount payable under the Plan would be made subject to the
debts or liabilities of the Member or his Beneficiary or would otherwise not be enjoyed by him,
then the Committee, if it so elects, may terminate such person’s interest in any such payment and
direct that the same be held and applied to or for the benefit of the Member, his Beneficiary, or
any other person deemed to be the natural objects of his bounty, taking into account the expressed
wishes of the Member (or, in the event of his death, his Beneficiary).

     9.5 Inability to Utilize Benefits. If the Committee shall find that any person to
whom any amount is or was payable hereunder is unable to care for his affairs because of illness or
accident or other reasons, or has died, then the Committee, if it so elects, may direct that any
payment or any part thereof due such person shall be paid to his estate (unless a prior claim
therefor has been made by a duly appointed legal representative) or be paid or applied for the
benefit of such person or to or for the benefit of his spouse, children or other dependents, an
institution maintaining or having custody of such person, any other person deemed by the Committee
to be a proper recipient on behalf of such

20

 

person otherwise entitled to payment, or any of them, in such manner and proportion as the
Committee may deem proper. Any such payment shall be in complete discharge of the liability
therefor of the Company, the Plan or the Committee or any member, officer or employee thereof. The
Committee may withhold the payment of any amount that shall be payable in accordance with the
provisions of the Plan to a person under legal disability until a representative of such person
competent to receive such payment on his behalf shall have been properly appointed.

     9.6 Actuarial Equivalents. Except as otherwise provided herein, whenever it is
necessary to determine under this Plan whether one benefit is less than, equal to, or larger than
another, or whether one benefit is the actuarial equivalent of another whether or not such benefits
are provided under this Plan, such determination shall be made using mortality, interest and any
other assumptions used at the time in determining actuarial equivalents under the Basic Pension
Plan.

     9.7 Health Information. The Member shall provide to the Company, if so requested and
as a precondition for remaining a Member, all health information and other information as the
Company may require should it decide to purchase life insurance policies or annuity contracts.

     9.8 Additional Benefit. The benefits payable under this Plan shall be in addition to
all other benefits provided for Employees of the Company, except as otherwise provided in this
Plan.

     9.9 Headings. The captions preceding the sections and articles hereof have been
inserted solely as a matter of convenience and in no way define or limit the scope or intent of any
provisions of the Plan.

     9.10 Governing Law. Except to the extent that such laws are pre-empted by the
Employee Retirement Income Security Act of 1974, as amended, this Plan shall be governed by the
laws of the State of New York as from time to time in effect.

21

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