Document:

EX 102

		
			 
		

		
			Exhibit 10.2 
		

		
			THE HANOVER INSURANCE GROUP CASH BALANCE 
		

		
			PENSION PLAN 
		

		
			PART I 
		

		
			(As amended and restated generally effective January 1, 2010) 
		

		
			 
		

		

		

		 

		

			 

		

		

			 

		

 

		THE HANOVER INSURANCE GROUP CASH BALANCE 
		

		
			PENSION PLAN 
		

		
			PART I 
		

		
			TABLE OF CONTENTS 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
						 

					
					
						    

					
					
						 

					
					
						  

					
					
						PAGE

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						ARTICLE I            NAME, PURPOSE AND EFFECTIVE DATE OF PLAN

					
					
						  

					
					
						 

					
1 
					
					
						  

				
	
					
						1.01

					
					
						    

					
					
						General Statement.

					
					
						  

					
					
						 

					
1 
					
					
						  

				
	
					
						1.02

					
					
						    

					
					
						Name of Plan.

					
					
						  

					
					
						 

					
1 
					
					
						  

				
	
					
						1.03

					
					
						    

					
					
						Purpose.

					
					
						  

					
					
						 

					
1 
					
					
						  

				
	
					
						1.04

					
					
						    

					
					
						Restated Plan Effective Date.

					
					
						  

					
					
						 

					
1 
					
					
						  

				
	
					
						ARTICLE II          DEFINITIONS

					
					
						  

					
					
						 

					
2 
					
					
						  

				
	
					
						ARTICLE III        PARTICIPATION REQUIREMENTS

					
					
						  

					
					
						 

					
12 
					
					
						  

				
	
					
						3.01

					
					
						    

					
					
						Participation Requirements.

					
					
						  

					
					
						 

					
12 
					
					
						  

				
	
					
						3.02

					
					
						    

					
					
						Classification Changes.

					
					
						  

					
					
						 

					
13 
					
					
						  

				
	
					
						3.03

					
					
						    

					
					
						Participant Cooperation, Participant Refusal.

					
					
						  

					
					
						 

					
13 
					
					
						  

				
	
					
						ARTICLE IV        PARTICIPANT ACCOUNTS

					
					
						  

					
					
						 

					
13 
					
					
						  

				
	
					
						4.01

					
					
						    

					
					
						Establishment of Accounts.

					
					
						  

					
					
						 

					
13 
					
					
						  

				
	
					
						4.02

					
					
						    

					
					
						Allocations to Accounts.

					
					
						  

					
					
						 

					
13 
					
					
						  

				
	
					
						4.03

					
					
						    

					
					
						Adjustments of Accounts.

					
					
						  

					
					
						 

					
13 
					
					
						  

				
	
					
						4.04

					
					
						    

					
					
						Distributions.

					
					
						  

					
					
						 

					
14 
					
					
						  

				
	
					
						ARTICLE V          EMPLOYER CONTRIBUTIONS

					
					
						  

					
					
						 

					
14 
					
					
						  

				
	
					
						5.01

					
					
						    

					
					
						Employer Contributions.

					
					
						  

					
					
						 

					
14 
					
					
						  

				
	
					
						5.02

					
					
						    

					
					
						Payment of Contributions to Trustee.

					
					
						  

					
					
						 

					
14 
					
					
						  

				
	
					
						5.03

					
					
						    

					
					
						Receipt of Contributions by Trustee.

					
					
						  

					
					
						 

					
14 
					
					
						  

				
	
					
						ARTICLE VI        RETIREMENT AND DISABILITY BENEFITS

					
					
						  

					
					
						 

					
14 
					
					
						  

				
	
					
						6.01

					
					
						    

					
					
						Normal Retirement Benefit.

					
					
						  

					
					
						 

					
14 
					
					
						  

				
	
					
						6.02

					
					
						    

					
					
						Early Retirement Benefit.

					
					
						  

					
					
						 

					
15 
					
					
						  

				
	
					
						6.03

					
					
						    

					
					
						Subsidized Early Retirement Benefit.

					
					
						  

					
					
						 

					
16 
					
					
						  

				
	
					
						6.04

					
					
						    

					
					
						Late Retirement Benefit.

					
					
						  

					
					
						 

					
18 
					
					
						  

				
	
					
						6.05

					
					
						    

					
					
						Disability Benefit.

					
					
						  

					
					
						 

					
18 
					
					
						  

				
	
					
						6.06

					
					
						    

					
					
						Distribution of Benefits.

					
					
						  

					
					
						 

					
18 
					
					
						  

				
	
					
						6.07

					
					
						    

					
					
						Qualified Joint and Survivor Annuity for Married Participants.

					
					
						  

					
					
						 

					
20 
					
					
						  

				
	
					
						6.08

					
					
						    

					
					
						Supplementary Pension Benefits.

					
					
						  

					
					
						 

					
21 
					
					
						  

				
	
					
						6.09

					
					
						    

					
					
						Suspension of Retirement Benefits.

					
					
						  

					
					
						 

					
22 
					
					
						  

				
	
					
						6.10

					
					
						    

					
					
						Rollovers to Other Qualified Plans.

					
					
						  

					
					
						 

					
23 
					
					
						  

				
	
					
						ARTICLE VII      DEATH BENEFITS

					
					
						  

					
					
						 

					
24 
					
					
						  

				
	
					
						7.01

					
					
						    

					
					
						Pre-Retirement Death Benefits.

					
					
						  

					
					
						 

					
24 
					
					
						  

				
	
					
						7.02

					
					
						    

					
					
						Death Benefits for Certain Dependent Spouses (Applicable only to certain Employees entitled to Special Grandfathered Benefits).

					
					
						  

					
					
						 

					
25 
					
					
						  

				
	
					
						ARTICLE VIII     BENEFITS UPON TERMINATION FROM SERVICE

					
					
						  

					
					
						 

					
27 
					
					
						  

				
	
					
						8.01

					
					
						    

					
					
						In General.

					
					
						  

					
					
						 

					
27 
					
					
						  

				
	
					
						8.02

					
					
						    

					
					
						Termination Benefits.

					
					
						  

					
					
						 

					
27 
					
					
						  

				
	
					
						8.03

					
					
						    

					
					
						Forfeitures.

					
					
						  

					
					
						 

					
28 
					
					
						  

				
	
					
						8.04

					
					
						    

					
					
						Resumption of Service.

					
					
						  

					
					
						 

					
28 
					
					
						  

				
	
					
						8.05

					
					
						    

					
					
						Service with Affiliates.

					
					
						  

					
					
						 

					
28 
					
					
						  

				
	
					
						8.06

					
					
						    

					
					
						Distribution of Benefits.

					
					
						  

					
					
						 

					
28 
					
					
						  

				
	
					
						8.07

					
					
						    

					
					
						Cash Out Repayment Option.

					
					
						  

					
					
						 

					
28 
					
					
						  

				
	
					
						8.08

					
					
						    

					
					
						Early Retirement Election.

					
					
						  

					
					
						 

					
29 
					
					
						  

				
	
					
						8.09

					
					
						    

					
					
						Amendment to Vesting Schedule.

					
					
						  

					
					
						 

					
29 
					
					
						  

				

		
			 
		

		
			 
		

		

		

		 

		

			 

		

		

			 

		

 

		 
		

		
			 
		

		
			ARTICLE I 
		

		
			NAME, PURPOSE AND EFFECTIVE DATE OF PLAN 
		

		
			1.01    General Statement. The Hanover Insurance Group Cash Balance Pension Plan (the “Plan”) consists of three parts, Part I, Part II and Part III. Part I of the Plan provides a cash balance and pension benefit, which was formerly provided under a plan known as “The Allmerica Financial Cash Balance Pension Plan”. Part II of the Plan provides a pension benefit, which was formerly provided under a plan known as “The Allmerica Financial Agents’ Pension Plan”. Part III of the Plan contains provisions applicable to each of Part I and Part II. 
		

		
			The provisions of Part III of the Plan shall override any provision of Part I and or Part II of the Plan as provided in Part III of the Plan. 
		

		
			The benefits payable to eligible Participants under Part I of the Plan are governed by the terms and conditions of Part I of the Plan and Part III of the Plan. The definitions of terms as used in this Part I of the Plan are as set forth in Article II, except as otherwise provided in this Article I. 
		

		
			1.02   Name of Plan. The prior version of this Part I of the Plan, known as The Allmerica Financial Cash Balance Pension Plan, generally effective January 1, 1997 (“The Allmerica Cash Balance Plan”), was an amendment and restatement of the State Mutual Companies’ Pension Plan. It was adopted by First Allmerica Financial Life Insurance Company (“First Allmerica”) and its affiliates, Citizens Insurance Company (“Citizens”) and The Hanover Insurance Company (“Hanover”). Effective January 1, 1995, the State Mutual Companies Pension Plan added a cash balance benefit. Effective December 31, 1994, benefit accruals provided under the integrated unit credit benefit formula of the State Mutual Companies’ Pension Plan were frozen for all Participants, except Participants eligible for certain continuing benefit accruals. Certain other accruals and benefits under this Part I of the Plan were subsequently frozen as provided in this Part I. 
		

		
			Prior versions of this Part I of the Plan were sponsored by First Allmerica, formerly known as State Mutual Life Assurance Company of America, from January 1, 1941 to December 31, 2007. Effective January 1, 2008, this Part I of the Plan was adopted by Hanover, an Affiliate of First Allmerica, as the sole Employer. Effective January 1, 1992, a prior version of this Part I of the Plan was merged with The Allmerica Financial Agents’ Pension Plan (formerly known as the State Mutual Agents’ Pension Plan) (the “Agents’ Pension Plan”). 
		

		
			Benefits payable under the Agents’ Pension Plan are set forth in Part II of the Plan. Parts I and II of the Plan are permissively aggregated for purposes of the qualification and non-discrimination requirements applicable to the Plan under Sections 401 and 410 of the Internal Revenue Code. 
		

		
			 
		

		
			1.03   Purpose. The Plan has been established for the exclusive benefit of Participants and their Beneficiaries and as far as possible shall be interpreted and administered in a manner consistent with this intent and consistent with the requirements of Section 401 of the Internal Revenue Code. 
		

		
			Subject to Article IV of Part III of the Plan (Limitations on Benefits) and to Section 10.04 of Part III of the Plan, which relates to the return of Employer contributions under special circumstances, until such time as the Plan has been terminated and all Plan liabilities have been satisfied, under no circumstances shall any assets of the Plan, or any contributions made under the Plan, be used for, or diverted to, purposes other than for the exclusive benefit of the Participants and their Beneficiaries and to defray reasonable expenses incurred in the administration of the Plan. 
		

		
			1.04   Restated Plan Effective Date. The effective date of this amended and restated Part I of the Plan is January 1, 2010 (except for those provisions of this Part of the Plan which have an alternative effective date). Except to the extent otherwise specifically provided in this Part I of the Plan, (i) the provisions of this amended and restated Part I of the Plan shall apply to a Participant who is in the employ of the Employer on or after January 1, 2010. The rights and benefits of any Participant whose employment with the Employer terminated prior to January 1, 2010 shall be determined in accordance with the provisions of this Part I of the Plan as were in effect at the appropriate time or times prior to January 1, 2010; provided, however, that if the Accrued Benefit of any such Participant has not been completely distributed before January 1, 2010, then such Accrued Benefit shall be accounted for and distributed in accordance with the provisions of this version of Part I of the Plan, but only to the extent that any such provision is not inconsistent with Part III of the Plan and subject to the requirements of applicable law. 
		

		

		

		 

		

			1

		

		

			 

		

 

		
		

		
			ARTICLE II 
		

		
			DEFINITIONS 
		

		
			All section and article references in this Part I are to section and article references in this Part I, except as otherwise expressly provided. 
		

		
			As used in Parts I, II and III of the Plan, the following words and phrases shall have the meanings set forth in this Part I, unless a different meaning is clearly required by the context or is otherwise provided in Part II and or Part III of the Plan. 
		

		
			2.01   “Accrued Benefit”: 
		

		
			(a)      means, except as provided in (b) below, the sum of (i) the monthly retirement benefit payable as a single life annuity to the Participant beginning on his or her Normal Retirement Date which is the Actuarial Equivalent of the Participant’s Projected Account Balance, plus (ii) the Participant’s Grandfathered Benefit, if any. 
		

		
			(b)     means, with respect to the minimum benefit for Non-Key Employee Participants in a Top Heavy Plan, the sum of such benefits earned by the Participant, which benefits are payable at the Participant’s Normal Retirement Date and are described in Section 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans). 
		

		
			2.02   “Actuarial Equivalent” means a benefit having the same value as the benefit or benefits otherwise payable. Except as otherwise provided in this Section, the present value of any benefit determined under the terms of the Part I of the Plan will be the actuarial equivalent of the no-death benefit life annuity retirement benefit specified in Section 6.01. 
		

		
			Actuarial Equivalent life annuity settlements of Participant Projected Account Balances or of optional life annuity Top Heavy Plan benefits will be computed utilizing (i) the Code Section 417 Mortality Table and (ii) the Code Section 417 Interest Rate for determining the amount payable to a Participant having an annuity starting date on or after January 1, 2004. 
		

		
			Optional life annuity settlements of Grandfathered Benefits will be computed utilizing the 1983 Group Annuity Table with Projection H, with mortality rates based on calendar year of birth of 1930 and interest at the rate of 7% per annum. Adjustment factors used to determine optional forms of Grandfathered Benefits are included in Exhibit A, attached hereto and made a part of Part I of the Plan. 
		

		
			Adjustment factors for optional Grandfathered Benefits not illustrated will be computed on an actuarial basis consistent with that used in computing the factors shown in Exhibit A. 
		

		
			The present value (including, but not limited to, for purposes of Section 7.01(a)(i)(B), Section 7.01(a)(ii)(B) and determining eligibility for cashout distributions under Section 8.02) and the amount of any cash distribution of a Grandfathered Benefit or a benefit for Non-Key Employee Participants in a Top Heavy Plan shall be determined on the basis of (i) the mortality rates specified above and an interest rate of 7% per annum, or (ii) the Code Section 417 Mortality Table and the Code Section 417 Interest Rate (or for determining the amount payable to a Participant having an annuity starting date on and after January 1, 2008, the Code Section 417 Applicable Interest Rate), whichever produces the greater benefit. 
		

		
			The preceding paragraphs shall not apply to the extent they would cause the Plan to fail to satisfy the requirements of Article IV of Part III of the Plan (Limitations on Benefits) or Section 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans). 
		

		
			For purposes of the Part I of the Plan, (a) the “Code Section 417 Mortality Table” means the applicable mortality table prescribed by the Secretary of the Treasury pursuant to Code section 417(e)(3), as in effect from time to time, provided,  however, that notwithstanding the preceding provisions of this paragraph, for distributions commencing on or after December 31, 2002 and prior to January 1, 2008, the Code Section 417 Mortality Table means the Table set forth in Revenue Ruling 2001-62 and for purposes of determining the amount payable to a Participant with an annuity starting date on or after January 1, 2008, the Code Section 417 Mortality Table means the Table set forth in Revenue Ruling 2007-67 or such other Table as may be prescribed by the Secretary of the Treasury pursuant to Code Section 417(e)(3); (b) for periods beginning on and after January 1, 2004, the “Code Section 417 Interest Rate” means, for the Plan Year which contains the annuity starting date for the distribution, the annual rate of interest on 30-year Treasury securities in effect for the second month immediately preceding the first day of the Plan Year (e.g., November 2009 for the 2010 Plan Year), and (c) for periods beginning on and after January 1, 2008, the “Code Section 417 Applicable Interest Rate” means, for the Plan Year which contains the annuity starting date for the distribution, the applicable interest rate described by Code section 417(e) after its amendment by the Pension Protection Act of 2006, which rate more specifically shall be the adjusted first, second, and third segment rates applied under rules similar to the rules of Code section 430(h)(2)(C) for the lookback month used to determine the previously applicable interest rate on 30-year Treasury securities (e.g., November 2009 for the 2010 Plan Year) or for such other time as the Secretary of the Treasury may by regulations prescribe. For purposes of determining the Code Section 417 Applicable Interest Rate, the first, second, and third segment rates are the first, second, and third segment rates which would be determined under Code section 430(h)(2)(C) if: 
		

		

		

		 

		

			2

		

		

			 

		

 

		
		

		
			(i)Code section 430(h)(2)(D) were applied by substituting the average yields for the month described in clause (ii) below for the average yields for the 24-month period described in such Code section, and 
		

		
			(ii) Code section 430(h)(2)(G)(i)(II) were applied by substituting “Section 417(e)(3)(A)(ii)(II) for “Section 412(b)(5)(B)(ii)(II)”, and 
		

		
			(iii) The applicable percentage under Code section 430(h)(2)(G) is treated as being 20% in 2008, 40% in 2009, 60% in 2010, and 80% in 2011. 
		

		
			2.03   (a)      “Affiliate” means any incorporated Career Agent of an Employer and corporation affiliated with the Employer
		

		
			  through the action of such corporation’s board of directors and the Employer’s Board of Directors.
		

		
			           (b)      Affiliate also means: 
		

		
			(i) Any corporation or corporations which together with the Employer constitute a controlled group of corporations or an “affiliated service group”, as described in Sections 414 (b) and 414 (m) of the Internal Revenue Code as now enacted or as later amended and in regulations promulgated thereunder; and 
		

		
			(ii) Any partnerships or proprietorships under the common control of the Employer. 
		

		
			2.04   “Age” means, except for purposes of determining lump sum cash distributions and optional life annuity benefits, the age of a person at his or her last birthday. Lump sum cash distributions and optional life annuity benefits will be determined on the basis of a person’s age nearest birthday. 
		

		
			 
		

		
			2.05   “Allocation” means an amount equal to the percentage of a Participant’s Eligible Compensation specified below for each of the Plan Years commencing on or after January 1, 1995 and prior to January 1, 2005. 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Plan Year

					
					
						 

					
					
						Percentage

				
	
					
						 

					
					
						 

				
	
					
						1995...................................................................................................

					
					
						 

					
					
						7%

				
	
					
						 

					
					
						 

				
	
					
						1996...................................................................................................

					
					
						 

					
					
						7%

				
	
					
						 

					
					
						 

				
	
					
						1997...................................................................................................

					
					
						 

					
					
						7%

				
	
					
						 

					
					
						 

				
	
					
						1998...................................................................................................

					
					
						 

					
					
						7%

				
	
					
						 

					
					
						 

				
	
					
						1999...................................................................................................

					
					
						 

					
					
						7%

				
	
					
						 

					
					
						 

				
	
					
						2000...................................................................................................

					
					
						 

					
					
						7%

				
	
					
						 

					
					
						 

				
	
					
						2001...................................................................................................

					
					
						 

					
					
						5%

				
	
					
						 

					
					
						 

				
	
					
						2002...................................................................................................

					
					
						 

					
					
						3%

				
	
					
						 

					
					
						 

				
	
					
						2003...................................................................................................

					
					
						 

					
					
						5%

				
	
					
						 

					
					
						 

				
	
					
						2004...................................................................................................

					
					
						 

					
					
						5.5%

				

		
			 
		

		
			An Employee will not receive more than one Allocation for any Plan Year with respect to the same Compensation. 
		

		
			2.06   “Annuity Commencement Date” means the date as of which a benefit commences under the Plan. 
		

		
			2.07   “Beneficiary” means the person, trust, organization or estate designated to receive Plan benefits payable on or after the death of a Participant. 
		

		
			2.08   “Compensation” means: 
		

		
			(a)For purposes of determining a Participant’s Allocation specified in Section 4.02, the total wages or salary, overtime, bonuses, and any other taxable remuneration paid to an Employee by the Employer during the Plan Year, while the Employee is a Participant, as reported on the Participant’s W-2 for the Plan Year; provided,  however, that Compensation for this purpose shall be determined without reduction for (i) any Code Section 401(k) salary reduction contributions contributed on the Participant’s behalf for the Plan Year to any defined contribution plan sponsored by the Employer and (ii) the amount of any salary reduction contributions contributed on the Participant’s behalf for the Plan Year to any Code Section 125 plan sponsored by the Employer. 
		

		
			 
		

		

		

		 

		

			3

		

		

			 

		

 

		Notwithstanding the above, Compensation for the above purpose shall not include: 
		

		
			(i)     incentive compensation paid to Participants pursuant to the Employer’s Executive Long Term Performance Unit Plan or pursuant to any similar or successor executive compensation plan; 
		

		
			(ii)      Employer contributions to a deferred compensation plan or arrangement (other than salary reduction contributions to a Code Section 401(k) or 125 plan, as described above) either for the year of deferral or for the year included in the Participant’s gross income; 
		

		
			(iii)     any income which is received by or on behalf of a Participant in connection with the grant, receipt, settlement, exercise, lapse of risk of forfeiture or restriction on transferability, or disposition of any stock option, stock award, stock grant, stock appreciation right or similar right or award granted under any plan, now or hereafter in effect, of the Employer or any successor to the Employer, the Employer’s parent, any such successor’s parent, any subsidiaries or affiliates of the Employer, or any stock or securities underlying any such option, award, grant or right; 
		

		
			(iv)     severance payments paid in a lump sum; 
		

		
			(v)      Code Section 79 imputed income or long term disability and workers’ compensation benefit payments; 
		

		
			(vi)     taxable moving expense allowances or taxable tuition or other educational reimbursements; 
		

		
			(vii)     for Plan Years commencing after December 31, 1998, compensation paid in the form of commissions; 
		

		
			(viii)    non-cash taxable benefits provided to executives, including the taxable value of Employer-paid club memberships, chauffeur services and Employer-provided automobiles; and 
		

		
			(ix)      other taxable amounts received other than cash compensation for services rendered, as determined by the Plan Administrator. 
		

		
			(b)For purposes of Section 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans) and for purposes of Article IV of Part III of the Plan (Limitations on Benefits), the term “Compensation” means a Participant’s wages, salaries, fees for professional services and other amounts received (without regard to whether or not an amount is paid in cash) for personal services actually rendered in the course of employment with the Employer to the extent that the amounts are includible in gross income (including, but not limited to, commissions paid salesmen, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and reimbursements or other expense allowances under a non-accountable plan (as described in Section 1.62-2(c) of the Regulations), and excluding the following: 
		

		
			(i)       Employer contributions to a plan of deferred compensation which are not includible in the Employee’s gross income for the taxable year in which contributed, or Employer contributions under a simplified employee pension plan to the extent such contributions are deductible by the Employee, or any distributions from a plan of deferred compensation; 
		

		
			(ii)      amounts realized from the exercise of a nonqualified stock option, or when restricted stock (or property) held by an Employee becomes freely transferable or is no longer subject to a substantial risk of forfeiture; 
		

		
			(iii)     amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option; and 
		

		
			(iv)     other amounts which receive special tax benefits. 
		

		
			For Plan Years commencing after December 31, 1997, Compensation for purposes of the Part I of the Plan shall also include Employee elective deferrals under Code Section 402(g)(3), and amounts contributed or deferred by the Employer at the election of the Employee and not includible in the gross income of the Employee, by reason of Code Sections 125, 132(f)(4), 402(e)(3) and 402(h)(1)(B). 
		

		
			Additionally, amounts under Code Section 125 include any amounts not available to a Participant in cash in lieu of group health coverage because the Participant is unable to certify that he or she has other health coverage (deemed Code Section 125 compensation). Such an amount will be treated as an amount under Code Section 125 only if the Employer does not request or collect information regarding the Participant’s other health coverage as part of the enrollment process for the health plan. 
		

		
			(c)Notwithstanding (a) and (b) above, for Plan Years beginning on or after January 1, 1994 and prior to January 1, 2002, the annual Compensation of each Participant taken into account for determining all benefits provided under Part I of the Plan for any determination period shall not exceed $150,000. This limitation shall be adjusted for inflation by the Secretary under Code Section 401(a)(17)(B) in multiples of $10,000 by applying an inflation adjustment factor and rounding the result down to the next multiple of $10,000 (increases of less than $10,000 are disregarded). The cost-of-living adjustment in effect for a calendar year applies to any period, not exceeding 12 months, over which Compensation is determined beginning in such calendar year. 
		

		

		

		 

		

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		If Compensation is being determined for a Plan Year that contains fewer than 12 calendar months, then the annual Compensation limit is an amount equal to the annual Compensation limit for the calendar year in which the Compensation period begins multiplied by the ratio obtained by dividing the number of full months in the period by 12. 
		

		
			 
		

		
			If Compensation for any prior determination period is taken into account in determining a Participant’s benefits for the current Plan Year, the Compensation for such prior determination period is subject to the applicable annual compensation limit in effect for that prior period. For this purpose, in determining benefits in Plan Years beginning on or after January 1, 1989, the annual Compensation limit in effect for determination periods beginning before that date is $200,000. In addition, in determining benefits in Plan Years beginning on or after January 1, 1994, the annual Compensation limit in effect for determination periods beginning before that date is $150,000. 
		

		
			(d)Notwithstanding (a) and (b) above, the annual Compensation of each Participant taken into account in determining benefit accruals in any Plan Year beginning after December 31, 2001, shall not exceed $200,000. Annual compensation means Compensation during the Plan Year or such other consecutive 12-month period over which Compensation is otherwise determined under the Part I of the Plan (the “determination period”). For purposes of determining benefit accruals in a Plan Year beginning after December 31, 2001, the annual Compensation for any prior determination period shall be limited to $200,000. 
		

		
			The $200,000 limit on annual Compensation for determination periods beginning after December 31, 2001 shall be adjusted for cost-of-living increases in accordance with Section 401(a)(17)(B) of the Code. The cost-of-living adjustment in effect for a calendar year applies to annual Compensation for the determination period that begins with or within such calendar year. 
		

		
			2.09   “Credited Service” means and includes all Hours of Service (except excluded Hours described in Subsection 2.23(b), (c), (g) and (h)) completed with the Employer as an eligible Employee on and after the date an Employee becomes a Participant in Part I of the Plan. 
		

		
			For purposes of the Part I of the Plan, a Participant shall receive a Year of Credited Service for each Plan Year in which he or she completes at least 1,000 Hours of Credited Service; provided that for the Plan Year in which an Employee initially becomes a Participant in Part I of the Plan, such Participant shall receive a Year of Credited Service if he or she completes at least 1,000 Hours of Service in the Plan Year. 
		

		
			A Participant who is absent because of sickness or injury shall receive Credited Service for the period described in Subsections 2.23(b) or (g). Except as provided in Section 6.05, if any such absence continues beyond such period, the Participant shall receive no further Credited Service. 
		

		
			Notwithstanding the rules for determining Credited Service described above: 
		

		
			(i) Eligible Re-employed Pensioners of First Allmerica, Citizens, Hanover and General Agents of First Allmerica (as each is described in Section 6.09) shall receive no further Credited Service for periods of re-employment following their retirement unless they complete at least 1,000 Hours of Service in a Plan Year. 
		

		
			 
		

		
			(ii) If during a Plan Year a Participant is employed by the Employer as a member of an eligible class of Employees and is also employed by an Affiliate, employed as a member of an ineligible class of Employees or employed as a Career Agent or General Agent of First Allmerica, he or she shall receive Credited Service under this Part I of the Plan only for Hours of Service completed while employed as a member of an eligible class of Employees. 
		

		
			(iii) For purposes only of determining eligibility for early retirement and eligibility for the Rule of 85 and Rule of 95 subsidized Early Retirement Benefits described in Section 6.02, but not for purposes of computing the amount of benefits payable, Credited Service shall include Hours of Service completed with Craftsman Insurance Company and the Hanover Life Insurance Company, both former affiliates of Hanover, and as a Career Agent or General Agent of First Allmerica. 
		

		
			2.10   “Determination Date” means the date as of which a Participant’s Accrued Benefit is calculated. 
		

		
			2.11   “Eligible Compensation” means the Compensation taken into account for purposes of determining a Participant’s Allocation for a Plan Year pursuant to Section 4.02 of the Part I of the Plan. If a Participant is a Participant in Part I of the Plan on the first day of any Plan Year, such Participant’s Eligible Compensation shall be his or her Compensation for such Plan Year paid while the Participant is employed as a member of an eligible class of Employees. If an Employee becomes a Participant in Part I of the Plan on any day after the first day of a Plan Year, such Participant’s Eligible Compensation shall be his or her Compensation for such Plan Year paid on and after the date he or she becomes a Participant and while the Participant is employed as a member of an eligible class of Employees. 
		

		

		

		 

		

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			2.12   “Eligibility Computation Period” means a period of twelve consecutive months commencing on an Employee’s Employment Commencement Date or, if an Employee does not complete at least 1,000 Hours of Service during such initial period, such Employee’s Eligibility Computation Period means the Plan Year commencing with the first Plan Year following the Employee’s Employment Commencement Date and, if necessary, each succeeding Plan Year. 
		

		
			2.13   “Employee” means any employee who is employed by the Employer. 
		

		
			2.14   “Employer” means The Hanover Insurance Company. 
		

		
			2.15   “Employment Commencement Date” means the date on which an Employee first performs an Hour of Service or, in the case of an Employee who has a One-Year Break in Service, the date on which he or she first performs an Hour of Service after such Break. 
		

		
			2.16   “Fiduciary” means any person who (i) exercises any discretionary authority or discretionary control respecting management of the Plan or exercises any authority or control respecting management or disposition of its assets; (ii) renders investment advice for a fee or other compensation, direct or indirect, with respect to any monies or other property of the Plan or has any authority or responsibility to do so; or (iii) has any discretionary authority or discretionary responsibility in the administration of the Plan, including, but not limited to, the Plan Administrator. 
		

		
			2.17   “First Allmerica” means First Allmerica Financial Life Insurance Company. 
		

		
			2.18   “Five Percent Owner” means, in the case of a corporation, any person who owns (or is considered as owning within the meaning of Code Section 318) more than five percent of the outstanding stock of the Employer or stock possessing more than five percent of the total combined voting power of all stock of the Employer. In the case of an Employer that is not a corporation; “Five Percent Owner” means any person who owns or under applicable regulations is considered as owning more than five percent of the capital or profits interest in the Employer. In determining percentage ownership hereunder, employers that would otherwise be aggregated under Code Sections 414(b), (c), and (m) shall be treated as separate employers. 
		

		
			2.19   “Former Participant” means a person who had been an active Participant in Part I or Part II of the Plan (as applicable), but who has ceased to accrue further Credited Service for any reason. 
		

		
			2.20   “Grandfathered Benefit” means either the Basic Grandfathered Benefit or the Special Grandfathered Benefit, as defined below. 
		

		
			(a)“Basic Grandfathered Benefit” means the monthly retirement benefit payable as a single life annuity to an actively employed Participant on his or her Normal Retirement Date, calculated in accordance with the benefit formula set forth in Section 6.01 of Part I of the Plan, as in effect on December 31, 1994. Such benefit shall be calculated based on the Participant’s Average Monthly Compensation and Credited Service, determined as of December 31, 1994, based on the provisions of Part I of the Plan as in effect on such date. 
		

		
			(b)“Special Grandfathered Benefit” means the monthly retirement benefit payable as a single life annuity to an actively employed Participant on his or her Normal Retirement Date, calculated in accordance with the benefit formula set forth in Section 6.01 of Part I of the Plan, as in effect on December 31, 1994. Such benefit shall be based on the Participant’s Average Monthly Compensation and Credited Service calculated as of the date of determination, both being determined in accordance with the provisions of Part I of the Plan as in effect on December 31, 1994. The Special Grandfathered Benefit is available only to Participants who were actively employed by the Employer or by an Affiliate and accruing Credited Service on December 31, 1994, whose age on December 31, 1994, when added to two times their Credited Service as of such date (determined in accordance with the provisions of Part I of the Plan as in effect on December 31, 1994), total at least 85. 
		

		
			 
		

		
			For purposes of this Section “actively employed” means that the Participant was performing work duties for the Employer or an Affiliate on December 31, 1994 or was then absent by reason of a scheduled day off, paid vacation day, personal day, or sick day or was then absent due to an Employer-approved leave of absence. Additionally, a Participant shall be deemed to have been actively employed on December 31, 1994 if on such date the Participant was then employed by the Employer or by an Affiliate and was then receiving disability benefits under his or her Employer’s long-term disability benefit plan. 
		

		
			Notwithstanding the above, each Section 401(a)(17) Employee’s Special Grandfathered Benefit under this Part I of the Plan will be the greater of the Special Grandfathered Benefit determined for the Employee under (i) or (ii) below: 
		

		
			(i)the Employee’s Special Grandfathered Benefit, calculated as described above, based on the Employee’s total Years of Credited Service as of the date of determination; or 
		

		
			(ii)the sum of: 
		

		
			(A)     the Employee’s Plan Accrued Benefit as of December 31, 1993, frozen in accordance with
Section 1.401(a)(4)-13 of the Treasury Regulations, and 
		

		

		

		 

		

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		(B)     the Employee’s Special Grandfathered Benefit determined under the benefit formula applicable for the 1994 Plan Year, as applied to the Employee’s Years of Credited Service (calculated as of the date of determination in accordance with the provisions of Part I of the Plan as in effect on December 31, 1994) for Plan Years beginning on or after January 1, 1994 and prior to January 1, 2005. 
		

		
			A “Section 401(a)(17) Employee” means an Employee whose Accrued Benefit as of a date on or after the first day of the first Plan Year beginning on or after January 1, 1994, is based on Compensation for a Year beginning prior to the first day of the first Plan Year beginning on or after January 1, 1994, that exceeded $150,000. 
		

		
			Notwithstanding anything in Part I of the Plan to the contrary, if an Employee who is accruing additional Special Grandfathered Benefits ceases to be eligible to accrue further benefits under Part I of the Plan because of termination of employment, retirement, transfer to an ineligible class of Employees, or for any other reason, such Employee shall not be eligible to accrue any additional Special Grandfathered Benefits upon resumption of service as an otherwise eligible Employee of the Employer. 
		

		
			Notwithstanding anything in Part I of the Plan to the contrary, no additional Special Grandfathered Benefits shall accrue for periods after December 31, 2004. Except as provided in the following paragraph, the amount of a Participant’s Special Grandfathered Benefit shall be frozen as of December 31, 2004, with such frozen Special Grandfathered Benefit being calculated based on the Participant’s Average Monthly Compensation and Credited Service as of the earlier of December 31, 2004 or the date the Participant ceases to be eligible to accrue additional Special Grandfathered Benefits determined in accordance with the provisions of Part I of the Plan as in effect on such date. 
		

		
			If a Participant was eligible to accrue additional Special Grandfathered Benefits as of December 31, 2004 under the provisions of Part I of the Plan in effect on December 31, 2004, the amount of the Participant’s frozen Special Grandfathered Benefit shall be increased to reflect increases in the cost of living after December 31, 2004 by: 
		

		
			(i) 5% per annum, compounded annually, for each Plan Year commencing on or after January 1, 2005 and ending on the earlier of (A) the date the Participant commences distribution of his or her Special Grandfathered Benefit or (B) the last day of the month within which the Participant would have completed 35 years of Credited Service (based on the provisions of Part I of the Plan in effect on December 31, 2004) if he or she had remained in continuous employment with the Employer through such date (the “Maximum Service Date”), and 
		

		
			(ii) If the Participant has not commenced receiving distribution of his or her Special Grandfathered Benefit prior to his or her Maximum Service Date, 3% per annum, compounded annually, for each Plan Year commencing after the Participant’s Maximum Service Date and ending on the date the Participant begins receiving his or her Special Grandfathered Benefit. 
		

		
			If the Participant commences receiving distribution of his or her Special Grandfathered Benefit as of any date other than the first day of a Plan Year, the cost of living adjustment percentage for such Plan Year shall be determined by multiplying the applicable cost of living adjustment percentage for such year by a fraction the numerator of which is the number of full or partial months from the first day of such Plan Year until the date as of which distribution of the Participant’s Special Grandfathered Benefit commences and the denominator of which is 12. If a Participant would have completed 35 years of Credited Service on a day other than the last day of the Plan Year, then the cost of living adjustment for such Plan Year shall be determined by multiplying 5% by a fraction the numerator of which is the number of full or partial months from the first day of such Plan Year until the date the Participant would have completed 35 years of Credited Service and the denominator of which is 12. The remaining months of the Plan Year after the Participant would have completed 35 years of Credited Service will be credited with a cost of living adjustment determined by multiplying 3% by a fraction the numerator of which is the remaining full months of such Plan Year and the denominator of which is 12. The foregoing cost of living adjustment provided in this Subsection 2.20(b) shall be applied to each eligible Participant’s Special Grandfathered Benefit without regard to his or her employment status after December 31, 2004. A Participant will not be eligible for this cost of living adjustment if the Participant had ceased accruing additional Special Grandfathered Benefits prior to December 31, 2004 due to the Participant’s retirement, death or other termination of employment prior to December 31, 2004. 
		

		
			2.21   “Group Annuity Contract” means the group annuity contract or contracts issued by the Insurer through which benefits of the Plan are to be funded. 
		

		
			2.22   “Highly Compensated Employee” means any Employee who: 
		

		
			(a)was a Five Percent Owner at any time during the Plan Year or the preceding Plan Year; or 
		

		
			(b)for the preceding Plan Year: 
		

		
			(i) had Compensation from the Employer in excess of $80,000 (as adjusted pursuant to Code Section 414(q)(1)), and 
		

		
			(ii) for such preceding Plan Year was in the top-paid group of Employees for such preceding Year. 
		

		

		

		 

		

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		For purposes of this Section the “top-paid group” for a Plan Year is the top 20% of Employees ranked on the basis of Compensation paid during such Year. 
		

		
			In addition to the foregoing, the term “Highly Compensated Employee” shall also mean any former Employee who separated from service prior to the Plan Year, performs no service for the Employer during the Plan Year, and was an actively employed Highly Compensated Employee in the separation year or any Plan Year ending on or after the date the Employee attained Age 55. 
		

		
			In determining whether an Employee is a Highly Compensated Employee for Plan Years beginning in 1997, the Amendments of Code Section 414(q) stated above are treated as having been in effect for Plan Years beginning in 1996. 
		

		
			For purposes of this Section, Compensation means Compensation determined for purposes of Article IV of Part III of the Plan (Limitations on Benefits) but, for Plan Years beginning before January 1, 1998, without regard to Code Sections 125, 402(e)(3) and 402(h)(1)(B). 
		

		
			The determination of who is a Highly Compensated Employee, including the determinations of the numbers and identity of employees in the top-paid group and the Compensation that is considered will be made in accordance with Section 414(q) of the Code and regulations thereunder. 
		

		
			 
		

		
			2.23   “Hour of Service” means: 
		

		
			(a)Each hour for which an Employee is paid, or entitled to payment, for the performance of duties for the Employer. For purposes of Part I of the Plan an Employee who is exempt from the requirements of the Fair Labor Standards Act of 1938, as amended, shall be credited with 45 Hours of Service for each complete or partial week he or she would be credited with at least one Hour of Service under this Section 2.23. 
		

		
			(b)Each hour for which an Employee is paid, or entitled to payment, by the Employer on account of a period of time during which no duties are performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence. Notwithstanding the preceding sentence: 
		

		
			(i) No more than the number of Hours in one regularly scheduled work year of the Employer shall be credited to an Employee under this Subsection (b) on account of any single continuous period during which the Employee performs no duties (whether or not such period occurs in a single computation period); 
		

		
			(ii) No hours shall be credited under this Subsection (b) for any payments made or due under a plan maintained solely for the purpose of complying with any applicable workers’ compensation, unemployment compensation or disability insurance laws; and 
		

		
			(iii) No hours shall be credited under this Subsection (b) for a payment which solely reimburses an Employee for medical or medically related expenses incurred by the Employee. 
		

		
			For purposes of this Subsection (b) a payment shall be deemed to be made by or due from the Employer regardless of whether such payment is made by or due from the Employer directly, or indirectly through, among others, a trust fund or insurer, to which the Employer contributes or pays premium. 
		

		
			(c)Each hour for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by the Employer. The same Hours of Service shall not be both credited under Subsections (a) or (b), as the case may be, and under this Subsection. No more than 501 Hours shall be credited under this Subsection for a period of time during which an Employee did not or would not have performed duties. 
		

		
			(d)Special rules for determining Hours of Service under Subsections (b) and (c) for reasons other than the performance of duties.  
		

		
			In the case of a payment which is made or due which results in the crediting of Hours of Service under Subsection (b) or in the case of an award or agreement for back pay, to the extent that such an award or agreement is made with respect to a period during which an Employee performs no duties, the number of Hours of Service to be credited shall be determined as follows: 
		

		
			(i) In the case of a payment made or due which is calculated on the basis of units of time (such as hours, days, weeks or months), the number of Hours of Service to be credited for “exempt” Employees described in Subsection (a) shall be determined as provided in such Subsection. For all other Employees, the Hours of Service to be credited shall be those regularly scheduled hours in such unit of time; provided,  however, that when an Employee does not have regularly scheduled hours, such Employee shall be credited with 8 Hours of Service for each workday for which he or she is entitled to be credited with Hours of Service under paragraph (b). 
		

		
			(ii) Except as provided in Paragraph (d)(iii), in the case of a payment made or due which is not calculated on the basis of units of time, the number of Hours of Service to be credited shall be equal to the amount of the payment divided 
		

		 

		

			8

		

		

			 

		

 

		by the Employee’s most recent hourly rate of compensation (as determined below) before the period during which no duties are performed. 
		

		
			(A)     The hourly rate of compensation of Employees paid on an hourly basis shall be the most recent hourly rate of such Employees. 
		

		
			(B)     In the case of Employees whose compensation is determined on the basis of a fixed rate for specified periods of time (other than hours) such as days, weeks or months, the hourly rate of compensation shall be the Employee’s most recent rate of compensation for a specified period of time (other than an hour), divided by the number of hours regularly scheduled for the performance of duties during such period of time. The rule described in Paragraph (d)(i) shall also be applied under this subparagraph to Employees without a regular work schedule. 
		

		
			(C)     In the case of Employees whose compensation is not determined on the basis of a fixed rate for specified periods of time, the Employee’s hourly rate of compensation shall be the lowest hourly rate of compensation paid to Employees in the same job classification as that of the Employee or, if no Employees in the same job classification have an hourly rate, the minimum wage as established from time to time under Section 6(a)(1) of the Fair Labor Standards Act of 1938, as amended. 
		

		
			(iii) Rule against double credit. An Employee shall not be credited on account of a period during which no duties are performed with more hours than such employee would have been credited but for such absence. 
		

		
			 
		

		
			(e)Crediting of Hours of Service to computation periods.  
		

		
			(i) Hours of Service described in Subsection (a) shall be credited to the Employee for the computation period or periods in which the duties are performed. 
		

		
			(ii) Hours of Service described in Subsection (b) shall be credited as follows: 
		

		
			(A)     Hours of Service credited to an Employee on account of a payment which is calculated on the basis of units of time (such as hours, days, weeks or months) shall be credited to the computation period or periods in which the period during which no duties are performed occurs, beginning with the first unit of time to which the payment relates. 
		

		
			(B)      Hours of Service credited to an Employee by reason of a payment which is not calculated on the basis of units of time shall be credited to the computation period in which the period during which no duties are performed occurs, or if the period during which no duties are performed extends beyond one computation period, such Hours of Service shall be allocated between not more than the first two computation periods in accordance with reasonable rules established by the Employer, which rules shall be consistently applied with respect to all Employees within the same job classification, reasonably defined. 
		

		
			(iii) Hours of Service described in Subsection (c) shall be credited to the computation period or periods to which the award or agreement for back pay pertains, rather than to the computation period in which the award, agreement or payment is made. 
		

		
			(f)For purposes only of determining participation and vesting under Part I of the Plan, Hours of Service shall include periods of service calculated in accordance with the rules set forth in the other Subsections of this Section 2.23: 
		

		
			(i)      with the Employer in a job or position in which the Employee was not eligible to participate in this Part I of the Plan; or 
		

		
			(ii)     as a Career Agent or General Agent of First Allmerica; 
		

		
			(iii)    for periods prior to January 1, 1998, with Citizens, Hanover or as an employee of a General Agent of First Allmerica; 
		

		
			(iv)   with Financial Profiles, Inc., or Advantage Insurance Network, Affiliates of First Allmerica, including periods of service completed prior to the date it became an Affiliate; or 
		

		
			(v)    with an Affiliate. 
		

		
			 
		

		

		

		 

		

			9

		

		

			 

		

 

		
		

		
			(g)Rules for Non-Paid Leaves of Absence. For purposes of Part I of the Plan, a Participant will also be credited with Hours of Service during any non-paid leave of absence granted by the Employer. Except as provided in Subsection (a) for exempt Employees, the number of Hours of Service to be credited under this Subsection (g) shall be the number of regularly scheduled working hours in each workday during the leave of absence; provided,  however, that no more than the number of Hours in one regularly scheduled work year of the Employer will be credited for each non-paid leave of absence. In the case of a non-exempt Employee without a regular work schedule, the number of Hours to be credited shall be based on a 40 hour work week and an 8 hour workday. Hours of Service described in this Subsection (g) shall be credited to the Employee for the computation period or periods during which the leave of absence occurs. 
		

		
			Notwithstanding the foregoing, for Plan Years beginning after December 31, 1998, all Employees (exempt and non-exempt) shall be credited with 8 Hours of Service for each workday for which they are entitled to be credited with Hours of Service for a non-paid leave of absence pursuant to this Subsection (g). 
		

		
			(h)Rules for Maternity or Paternity Leaves of Absence. In addition to the foregoing rules and solely for purposes of determining whether a One Year Break in Service for participation and vesting purposes has occurred in a computation period, an individual who is absent for maternity or paternity reasons shall receive credit for the Hours of Service which would otherwise have been credited to such individual but for such absence, or in any case in which such Hours cannot be determined, 8 Hours of Service per day of such absence. Provided,  however, that: 
		

		
			(i) Hours shall not be credited under both this paragraph (h) and one of the other paragraphs of this Section 2.23; 
		

		
			(ii) no more than 501 Hours shall be credited for each maternity or paternity absence; and 
		

		
			(iii) if a maternity or paternity leave extends beyond one Plan Year, the Hours shall be credited to the Plan Year in which the absence begins to the extent necessary to prevent a One Year Break in Service, otherwise such Hours shall be credited to the following Plan Year. 
		

		
			For purposes of this paragraph, an absence from work for maternity or paternity reasons means an absence (i) by reason of the pregnancy of the individual, (ii) by reason of a birth of a child of the individual, (iii) by reason of the placement of a child with the individual in connection with the adoption of such child by such individual, or (iv) for purposes of caring for such child for a period beginning immediately following such birth or placement. 
		

		
			(i)Other Federal Law. Nothing in this Section 2.23 shall be construed to alter, amend, modify, invalidate, impair or supersede any law of the United States or any rule or regulation issued under any such law. 
		

		
			 
		

		
			2.24   “Insurer” means First Allmerica. 
		

		
			2.25   “Internal Revenue Code” or “Code” means the Internal Revenue Code of 1986, as amended, and any future Internal Revenue Code or similar Internal Revenue laws. 
		

		
			2.26   “Key Employee”. In determining whether the Plan (in the aggregate, including Parts I, II, and III) is top-heavy for Plan Years beginning after December 31, 2001, “Key Employee” means any Employee or former Employee (including any deceased Employee) who at any time during the Plan Year that includes the determination date is: (a) an officer of the Employer (as that term is defined within the meaning of Code Section 416 and the regulations thereunder) having an annual Compensation greater than $130,000 (as adjusted under Section 416(i)(1) of the Code for Plan Years beginning after December 31, 2002), a (b) Five Percent Owner, or (c) a 1-percent owner of the Employer having an annual Compensation of more than $150,000. In determining whether a Plan is top heavy for Plan Years beginning before January 1, 2002, “Key Employee” means any Employee or former Employee (including any deceased Employee) who at any time during the 5-year period ending on the determination date, is (i) an officer of the Employer (as that term is defined within the meaning of Code Section 416 and the regulations thereunder) having an annual Compensation that exceeds 50 percent of the dollar limitation under Code Section 415(b)(1)(A), (ii) an owner (or an individual considered an owner under Code Section 318) of one of the ten largest interests in the Employer if such individual’s Compensation exceeds 100 percent of the dollar limitation under Code Section 415(c)(1)(A), (ii) a Five Percent Owner, or (iv) a 1-percent owner of the Employer who has an annual Compensation of more than $150,000. 
		

		
			The determination of who is a Key Employee will be made in accordance with Section 416(i)(1) of the Internal Revenue Code and the Treasury Regulations and other guidance of general applicability issued thereunder. For purposes of determining whether a Participant is a Key Employee, the Participant’s Compensation means Compensation as defined for purposes of Article IV of Part III of the Plan (Limitations on Benefits), but for Plan Years beginning before January 1, 1998, without regard to Code Sections 125, 402(e)(3) and 402(h)(1)(B). 
		

		
			2.27   “Limitation Year” means a calendar year. 
		

		
			2.28   “Non-Highly Compensated Employee” means any employee who is not a Highly Compensated Employee. 
		

		
			2.29   “Non-Key Employee” means any Employee who is not a Key Employee. 
		

		
			2.30   “Normal Retirement Age” means Age 65. 
		

		

		

		 

		

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		2.31   “Normal Retirement Date” means the first day of the month in which the Participant’s Normal Retirement Age occurs. 
		

		
			2.32   “One Year Break in Service” means any Plan Year, or for purposes of Article III, Eligibility Computation Period, during which the Employee has not completed more than 500 Hours of Service. 
		

		
			 
		

		
			2.33   “Participant” means any eligible Employee who participates in the Plan as provided in Article III of Part I of the Plan and or Article III of Part II of the Plan as applicable; and who has not for any reason become ineligible to participate further in the Plan. 
		

		
			2.34   “Plan Administrator” means the Benefits Committee, which shall have fiduciary responsibility for the interpretation and administration of the Plan as provided in Article VII of Part III of the Plan (Plan Fiduciary Responsibilities). Members of the Benefits Committee shall be appointed as provided in Section 8.01 of Part III of the Plan. 
		

		
			2.35   “Plan Sponsor” means the Employer. 
		

		
			2.36   “Plan Year” means a calendar year. 
		

		
			2.37   “Plan Year Allocation Date” means for any Plan Year the date each Participant’s Account shall be credited with an Allocation for the Plan Year. Such date shall be the March 1 following the Plan Year with respect to which the Allocation is made. 
		

		
			Notwithstanding the foregoing, for Plan Years beginning after December 31, 1997 the Plan Year Allocation Date means the first business day of March following the Plan Year with respect to which the Allocation is made. 
		

		
			2.38   “Projected Account Balance” means: 
		

		
			(a)With respect to a Participant who has attained his or her Normal Retirement Date on the Determination Date, the Participant’s Account Balance as of such Determination Date; and 
		

		
			(b)With respect to a Participant who has not attained his or her Normal Retirement Date as of the Determination Date, the projected value of the Participant’s Account Balance as of his or her Normal Retirement Date determined as if (i) the Participant has a separation from service on the Determination Date, and (ii) the Participant’s Account Balance is credited with earnings on a daily basis based upon an annual effective rate equal to the Code Section 417 Interest Rate (as defined in Section 2.02) from the Determination Date through the Participant’s Normal Retirement Date. Notwithstanding anything in Part I of the Plan to the contrary, in determining a Participant’s Projected Account Balance, the Code Section 417 Interest Rate in effect for the Plan Year that contains the Determination Date shall be assumed to remain the same for all future Plan Years. 
		

		
			2.39   “Qualified Domestic Relations Order” means any judgment, decree or order (including approval of a property settlement agreement) which: 
		

		
			(a)relates to the provision of child support, alimony payments, or marital property rights to a spouse, former spouse, child or other dependent of a Participant; 
		

		
			(b)is made pursuant to a state domestic relations law (including a community property law); 
		

		
			 
		

		
			(c)constitutes a “qualified domestic relations order” within the meaning of Section 414(p) of the Code; and 
		

		
			(d)is entered on or after January 1, 1985. 
		

		
			Effective April 6, 2007, a domestic relations order that otherwise satisfies the requirements for a qualified domestic relations order (“QDRO”) will not fail to be a QDRO: (i) solely because the order is issued after, or revises, another domestic relations order or QDRO; or (ii) solely because of the time at which the order is issued, including issuance after the annuity starting date or after the Participant’s death. 
		

		
			2.40   “Qualified Joint and Survivor Annuity” means an immediate annuity for the life of the Participant, with a survivor annuity for the life of the Participant’s spouse which is not less than one-half, nor greater than, the amount of the annuity payable during the joint lives of the Participant and the Participant’s spouse. The Qualified Joint and Survivor Annuity (i) for the purposes of Part I of the Plan will be the Actuarial Equivalent of the Plan’s no-death benefit life annuity normal form of benefit; and (ii) for the purposes of Part II of the Plan will be the Actuarial Equivalent of the Plan’s normal form of benefit. 
		

		
			2.41   “Top Heavy Plan” means for any Plan Year beginning after December 31, 1983 that any of the following conditions exists: 
		

		
			(i) If the top heavy ratio (as defined in Article II of Part III of the Plan) for this Plan exceeds 60 percent and this Plan is not part of any required aggregation group or permissive aggregation group of plans. 
		

		
			(ii) If this Plan is a part of a required aggregation group and part of a permissive aggregation group and the top heavy ratio for the group of plans exceeds 60 percent. 
		

		
			(iii) If this Plan is a part of a required aggregation group and part of a permissive aggregation group of plans and the top heavy ratio for the permissive aggregation group exceeds 60 percent. 
		

		
			See Article II of Part III of the Plan for requirements and additional definitions applicable to Top Heavy Plans. 
		

		

		

		 

		

			11

		

		

			 

		

 

		2.42   “Top Heavy Plan Year” means that, for a particular Plan Year commencing after December 31, 1983, the Plan is a Top Heavy Plan. 
		

		
			2.43   “Trustee” means the bank, trust company or person(s) who shall be constituted the original trustee or trustees for the Plan and Trust created therefor, and also any such successor trustee or trustees. The duties and responsibilities of the Trustee are set forth in the Trust Indenture in the form annexed hereto. 
		

		
			2.44   “Year of Service” means, any Plan Year during which an Employee completes at least 1,000 Hours of Service; provided,  however, that for purposes of determining Plan entry under Article III of Part I of the Plan, Year of Service means an Eligibility Computation Period during which an Employee completes at least 1,000 Hours of Service; provided,  further however, that for purposes of determining Plan entry under Article III of Part II of the Plan, Year of Service shall mean any twelve consecutive month period during which he completes 1,000 Hours of Service computed from the date an Employee first performs an Hour of Service, or any anniversary thereof (or again performs an Hour of Service upon re-employment following a termination resulting in a One Year Break in Service). 
		

		
			ARTICLE III
		

		
			PARTICIPATION REQUIREMENTS
		

		
			3.01   Participation Requirements.  
		

		
			(a)Employee Participation. Individuals who were Participants in Part I of the Plan on December 31, 2009 shall continue to be Participants in Part I of the Plan on January 1, 2010. 
		

		
			Notwithstanding anything in Part I of the Plan to the contrary, for periods commencing on and after January 1, 2005, (i) no Employee who had not previously been a Participant in Part I of the Plan shall become a Participant in Part I of the Plan, and (ii) a Former Participant who is re-employed as an Employee shall be reinstated as an active Participant in Part I of the Plan but only for purposes of increasing Plan vesting on his or her frozen Accrued Benefit and for purposes of determining eligibility for early retirement under Section 6.02. 
		

		
			For Plan Years that commenced prior to January 1, 2005, an Employee became eligible to be a Participant on the first day of the calendar month coincident with or next following completion of one Year of Service, provided he or she was then an eligible Employee. 
		

		
			Eligible Employees who were actively employed and who were Participants in The Allmerica Financial Cash Balance Pension Plan as adopted by Citizens Insurance Company of America or in The Allmerica Financial Cash Balance Pension Plan as adopted by The Hanover Insurance Company, each of which were merged with and into this Part I of the Plan, became Participants in this Part I of the Plan on January 1, 1998. 
		

		
			Notwithstanding the foregoing: (i) an Employee who was formerly employed by Financial Profiles, Inc. shall not become eligible to become a Participant in this Part I of the Plan until January 1, 1999; and (ii) an Employee who was formerly employed by Advantage Insurance Network shall not become eligible to become a Participant in this Part I of the Plan until August 1, 1999. 
		

		
			Notwithstanding the foregoing, the following persons shall not be eligible to become or remain active Participants in Part I of the Plan: 
		

			
	
			
				 (i)
			

			
	
			
			Employees who are or were eligible to participate in The Allmerica Financial Agents’ Retirement Plan; 

		
			 
		

			
	
			
				 (ii)
			

			
	
			
			Retirees of First Allmerica or retirees of General Agents of First Allmerica who are receiving retirement benefits under this Part I of the Plan whose current period of post-retirement re-employment with First Allmerica, Citizens or Hanover began prior to January 1, 1988; 

			
	
			
				 (iii)
			

			
	
			
			Retirees of Citizens or Hanover who are receiving retirement benefits under this Part I of the Plan whose current period of post-retirement re-employment with First Allmerica, Citizens or Hanover began prior to January 1, 1993; 

			
	
			
				 (iv)
			

			
	
			
			Leased Employees, within the meaning of Code Sections 414(n) and (o);

		

		

		 

		

			12

		

		

			 

		

 

		
		

			
	
			
				 (v)
			

			
	
			
			A contractor’s employee, i.e., a person working for a company providing goods or services (including temporary employee services) to the Employer or to an Affiliate whom the Employer does not regard to be its common law employee, as evidenced by its failure to withhold taxes from his or her compensation, even if the individual is actually the Employer’s common law employee; or 

			
	
			
				 (vi)
			

			
	
			
			An independent contractor, i.e., a person who is classified by the Employer as an independent contractor, as evidenced by its failure to withhold taxes from his or her compensation, even if the individual is actually the Employer’s common law employee. 

		
			(b)Reeligibility of Former Participants. A Former Participant, who again becomes eligible to participate in Part I of the Plan, will become a Participant in Part I of the Plan on the date of his or her recommencement of service with the Employer. Any other former Employee who again becomes eligible will become a Participant on the entry date determined under the rules set forth in Subsection (a). 
		

		
			3.02   Classification Changes. In the event of a change in job classification, such that an Employee, although still in the employment of the Employer, no longer is an eligible Employee, he or she shall receive no further Credited Service under Part I of the Plan, and the Participant’s Accrued Benefit on the date he or she becomes ineligible shall continue to vest, become payable or be forfeited, as the case may be, in the same manner and to the same extent as if the Employee had remained an eligible Participant. 
		

		
			For periods commencing prior to January 1, 2005, in the event a Participant becomes ineligible to accrue further Credited Service because he or she is no longer a member of an eligible class of Employees, but has not terminated his or her employment with an Employer, such Participant shall again be eligible to accrue further Credited Service immediately upon his or her return to an eligible class of Employees. 
		

		
			In the event an Employee who is not a member of the eligible class of Employees becomes a member of the eligible class, such Employee shall participate immediately if such Employee has satisfied the minimum service requirements of Part I of the Plan, and would have previously become a Participant had he or she been in the eligible class. 
		

		
			3.03   Participant Cooperation, Participant Refusal. Each Employee who is eligible shall become a Participant on the entry date specified in Subsection 3.01(a) unless he or she notifies the Plan Administrator in writing prior to such entry date that he or she does not wish to be a Participant under this Part I of the Plan. Any such election not to participate in this Part I of the Plan shall be irrevocable. In order to waive participation in this Part I of the Plan, an Employee must agree to irrevocably waive his or her right to become a Participant in any other qualified retirement plan sponsored by the Employer. Each eligible Employee who becomes a Participant hereunder thereby agrees to be bound by all of the terms and conditions of this Part I of the Plan. Each eligible Employee, by becoming a Participant in this Part I of the Plan, agrees to cooperate fully with the Insurer, including completion and signing of such forms as are required by the Insurer under the Group Annuity Contract. 
		

		
			ARTICLE IV
		

		
			PARTICIPANT ACCOUNTS
		

		
			4.01   Establishment of Accounts. For Plan Years commencing on or after January 1, 1995, a memorandum Account shall be established under Part I of the Plan for each Participant. Such Account shall be credited with Allocations in accordance with Section 4.02 and shall be adjusted in accordance with Section 4.03 and for any distributions in accordance with Section 4.04. The resultant value determined at any time, after the operation of Sections 4.02, 4.03 and 4.04, shall be the “Participant’s Account Balance”. The memorandum Account is part of a mechanism for computing benefits under Part I of the Plan. Accordingly, there need be no relationship between Participants’ Account Balances and the amount or nature of Plan assets. 
		

		
			4.02   Allocations to Accounts. For each Plan Year commencing on or after January 1, 1995 and prior to January 1, 2005 during which a Participant completes a Year of Credited Service and, regardless of the number of Hours of Service credited to the Participant, for any such Plan Year during which a Participant dies or first retires, such Participant’s Account shall be credited with an Allocation for such Plan Year as of the Plan Year Allocation Date. Allocations under the Plan are part of the mechanism for computing benefits under the Plan and do not relate to actual contributions to the Plan. 
		

		
			Notwithstanding anything in the Plan to the contrary, no Allocations shall be credited to Participants for Plan Years beginning on or after January 1, 2005; provided, however, (i) that Allocations shall be credited to eligible Participants for the 2004 Plan Year as of the 2004 Plan Year Allocation Date and (ii) memorandum Accounts shall continue to be credited with investment experience credits after December 31, 2004, as provided in Section 4.03 of Part I of the Plan. 
		

		
			4.03   Adjustments of Accounts.  
		

		
			(a)Adjustment for Earnings for Plan Years beginning on and after January 1, 2004. For each Plan Year beginning on or after January 1, 2004, each Participant’s Account shall be credited with earnings on a daily basis based upon an annual effective rate equal to the Code Section 417 Interest Rate in effect for such Plan Year. 
		

		
			 
		

		

		

		 

		

			13

		

		

			 

		

 

		(b)Adjustment for Investment Experience for Plan Years beginning on or after January 1, 1995 and before January 1, 2004. For each Plan Year beginning on or after January 1, 1995 and before January 1, 2004, Participants in Part I of the Plan shall make investment experience elections with respect to their respective Account Balances from among choices prescribed by the Plan Administrator. The specific investment choices and the time and manner of making elections may be changed from time to time. Each Participant’s Account Balance shall be adjusted to reflect investment experience in the same manner as if the Account Balance were actually invested pursuant to the Participant’s elections and as if each Allocation were actually a contribution made to the Plan on the relevant Plan Year Allocation Date. 
		

		
			4.04   Distributions. The Account Balance shall be decreased for any non-annuity distributions paid to the Participant or his or her Beneficiary. In the event a benefit becomes payable as an annuity in accordance with Article VI or as a survivor annuity in accordance with Article VII, the Account Balance shall be decreased by the Actuarial Equivalent of such annuity as of the Annuity Commencement Date. 
		

		
			ARTICLE V
		

		
			EMPLOYER CONTRIBUTIONS
		

		
			5.01   Employer Contributions.  
		

		
			(a)Employer Contributions for Plan Years beginning after December 31, 1997. The Employer shall contribute for each Plan Year during which Part I of the Plan is in effect that amount, if any, which the enrolled actuary for the Plan determines is necessary to fund the Plan under the actuarial cost method in effect for the Plan. No contributions will be required of or permitted by Employees. 
		

		
			(b)Employer Contributions for Plan Years beginning prior to January 1, 1998. Each Employer shall contribute for each Plan Year during which the Plan is in effect that amount, if any, which the enrolled actuary for the Plan determines is necessary to fund Part I of the Plan under the actuarial costs method in effect for Part I of the Plan. No contributions will be required of or permitted by Employees. 
		

		
			Except as provided below, contributions paid by each Employer and earnings thereon will be used only to fund Plan costs and benefits for its Employees and will not be used to fund Plan costs and benefits for any other Employees. Notwithstanding the foregoing: 
		

		
			(i) Plan contributions paid by First Allmerica and General Agents of First Allmerica and earnings thereon will be used to fund Plan costs and benefits of both First Allmerica and such General Agents. 
		

		
			(ii) Plan contributions paid by First Allmerica and General Agents of First Allmerica and earnings thereon will also be used to fund costs and benefits of The Allmerica Financial Agents’ Pension Plan (Part II of the Plan), which plan was merged with this Part I of the Plan on January 1, 1992. 
		

		
			5.02   Payment of Contributions to Trustee. The Employer shall make payment of all contributions directly to the Trustee to be held, managed and invested in one or more Group Annuity Contracts and in other investments permitted under the Trust, but subject to Section 5.03. 
		

		
			5.03   Receipt of Contributions by Trustee. The Trustee shall accept and hold under the Trust such contributions of money, or other property approved by the Employer for acceptance by the Trustee, on behalf of the Employer and its Employees and Beneficiaries as it may receive from time to time from the Employer, other than cash it is instructed to remit to the Insurer for deposit with the Insurer. However, the Employer may pay contributions directly to the Insurer and such payment shall be deemed a contribution to the Trust to the same extent as if payment had been made to the Trustee. All such contributions shall be accompanied by written instructions from the Plan Administrator or its designee accounting for the manner in which they are to be credited. 
		

		
			ARTICLE VI
		

		
			RETIREMENT AND DISABILITY BENEFITS
		

		
			6.01   Normal Retirement Benefit. Subject to Section 6.07, each Participant who retires on his or her Normal Retirement Date (and each Former Participant with a vested benefit deferred to his or her Normal Retirement Date) shall be entitled to receive a monthly life annuity commencing on such Date and terminating on the last regular payment date prior to his or her death, which monthly benefit shall equal the Participant’s Accrued Benefit (or, in case of each Former Participant with a vested benefit, the Former Participant’s vested Accrued Benefit). 
		

		

		

		 

		

			14

		

		

			 

		

 

		
		

		
			Notwithstanding the foregoing, the Grandfathered Benefit (if any) of each Participant shall not be less than the largest periodic Grandfathered Benefit that would have been payable to the Participant upon separation from service at or prior to Normal Retirement Age under Part I of the Plan. For purposes of comparing periodic benefits in the same form commencing prior to and at Normal Retirement Age, the greater benefit is determined by converting the benefit payable prior to Normal Retirement Age into the same form of annuity benefit payable at Normal Retirement Age and comparing the amount of such annuity payments. 
		

		
			Notwithstanding the foregoing, Non-Key Employees who are Participants in a Top Heavy shall be entitled to the minimum benefit described in Section 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans) if such benefit is greater than the benefit provided by this Section 6.01. 
		

		
			 
		

		
			Each actively employed Participant’s Accrued Benefit shall become 100% vested and nonforfeitable when the Participant attains his or her Normal Retirement Age. An actively employed Participant may terminate employment with the Employer and retire on his or her Normal Retirement Date. Upon such date the Participant shall be entitled to receive, or to begin to receive, his or her Normal Retirement Benefit. 
		

		
			The Plan Administrator shall notify the Trustee (and Insurer, if appropriate) as and when the Normal Retirement Age and Normal Retirement Date of each Participant shall occur and shall also advise the Trustee (and Insurer, if appropriate) as to the manner in which retirement benefits are to be distributed to a Participant, subject to the provisions of this Article. Upon receipt of such notification and subject to the other provisions of this Article, the Trustee or Insurer shall take such action as may be necessary in order to commence payment of the Participant’s Normal Retirement Benefit. 
		

		
			6.02   Early Retirement Benefit. Any actively employed Participant who has completed at least fifteen Years of Service (or, if earlier, who has completed at least fifteen Years of Credited Service, with Years of Credited Service completed before 1995 being determined in accordance with the terms of Part I of the Plan as in effect on December 31, 1994) may elect to retire on the first day of any month following attainment of Age 55, in which event he or she shall receive, subject to Section 6.07 in the case of a married Participant, a monthly life annuity commencing on the date of his or her early retirement and terminating on the last regular payment date prior to his or her death. Each early retiree’s monthly life annuity will be equal to the Actuarial Equivalent of the early retiree’s Accrued Benefit, except that the portion of the Accrued Benefit attributable to the Participant’s Grandfathered Benefit, if any, shall equal the early retiree’s Grandfathered Benefit multiplied by the appropriate percentage. 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						Retirement

					
						Age

					
					
						 

					
					
						Percentage of Monthly

					
						Grandfathered Benefit*

				
	
					
						65

					
					
						 

					
					
						100

				
	
					
						64

					
					
						 

					
					
						93 1/3

				
	
					
						63

					
					
						 

					
					
						86 2/3

				
	
					
						62

					
					
						 

					
					
						80

				
	
					
						61

					
					
						 

					
					
						73 1/3

				
	
					
						60

					
					
						 

					
					
						66 2/3

				
	
					
						59

					
					
						 

					
					
						63 1/3

				
	
					
						58

					
					
						 

					
					
						60

				
	
					
						57

					
					
						 

					
					
						56 2/3

				
	
					
						56

					
					
						 

					
					
						53 1/3

				
	
					
						55

					
					
						 

					
					
						50

				
	
					
						 

				
	
					
						*If benefit payments commence in a month other than the month in which the Participant attains the specified Age, the percentage shall be determined by straight line interpolation.

				

		
			 
		

		
			Provided,  however, that an actively employed Participant (i) who is entitled to a Special Grandfathered Benefit, (ii) who has been continuously employed as a member of an eligible class of Employees from January 1, 1995 until the date of his or her early retirement, and (iii) whose combined Age and Years of Credited Service as of the date of determination (calculated in accordance with the provisions of Part I of the Plan in effect on December 31, 1994) total at least 85 (the “Rule of 85”) shall be entitled to receive a Special Grandfathered Benefit determined without the above actuarial reduction. 
		

		
			Provided,  however, that an actively employed Participant (i) who is entitled to a Grandfathered Benefit, (ii) who has attained Age 62, and (iii) whose combined Age and Years of Credited Service as of the date of determination (calculated in accordance with the provisions of Part I of the Plan in effect on December 31, 1994) total at least 95 (the “Rule of 95”) shall be entitled to receive a Grandfathered Benefit determined without the above actuarial reduction. 
		

		
			For purposes of determining eligibility for the Rule of 85 and Rule of 95 subsidized early retirement benefits, but not for purpose of computing actual benefit amounts, Years of Credited Service shall include Hours of Service completed as a Career Agent or General Agent of First Allmerica. 
		

		

		

		 

		

			15

		

		

			 

		

 

		If a Participant terminates employment after having completed at least fifteen Years of Service, he or she may elect to retire on the first day of any month following his or her 55th birthday and prior to his or her Normal Retirement Date. If any such Former Participant elects to retire early, he or she shall be entitled to receive a monthly retirement benefit equal to a percentage of the monthly benefit to which the Participant would have been entitled on his or her Normal Retirement Date. Such percentage shall be obtained by applying the appropriate percentage set forth in the table above to the monthly benefit payable on the Former Participant’s Normal Retirement Date. 
		

		
			Notwithstanding the foregoing, if this Plan is a Top Heavy Plan, and if greater than the benefit described above, each Non-Key Employee who elects early retirement shall be entitled to receive a monthly early retirement benefit equal to the appropriate percentage above of his or her Accrued Benefit described in Section 2.01(b). 
		

		
			6.03   Subsidized Early Retirement Benefit. Any eligible Participant who elected an immediate early retirement benefit to commence between March 1, 2003 and May 1, 2004 shall be entitled to an increased retirement benefit, computed as described below, to commence on the date of his or her actual retirement. 
		

		
			(a)Eligible Participants. Only Participants in Part I of the Plan who are actively employed by First Allmerica on February 1, 2003 (or are then on an Employer-approved paid leave of absence, which paid leave commenced no earlier than December 18, 2002) shall be eligible for the subsidized early retirement benefit described in this Section 6.03. In addition, in order to be eligible for such benefits, a Participant must have retired between March 1, 2003 and May 1, 2004 and met the following requirements: 
		

		
			(i)The Participant must be eligible for a “Special Grandfathered Benefit” (as described in Section 2.20(b) of Part I of the Plan) on the date of his or her early retirement. 
		

		
			 
		

		
			(ii)     The Participant must have been continuously employed as a member of an eligible class of Employees from January 1, 1995 until the date of his or her retirement. 
		

		
			(iii)    The Participant must not have attained Age 65 on the date of his or her retirement. 
		

		
			(iv)    The Participant must not be eligible for the Rule of 85 subsidized early retirement benefit (as described in Section 6.02 of Part I of the Plan) on the date of his or her retirement. 
		

		
			(v)     The Participant’s job or position with First Allmerica must have been or will be eliminated by May 1, 2003 as a result of the reorganization of the Allmerica Financial Services Division of First Allmerica. 
		

		
			(vi)         The Participant must be actively at work on the last business day preceding the date of his or her early retirement or then be on vacation, be on an Employer-approved paid leave of absence or be absent due to sickness or injury. 
		

		
			(vii)    The Participant must execute an appropriate release satisfactory to First Allmerica releasing the company (and its subsidiaries and affiliates and its and their officers, directors and employees) from all liability arising out of or relating to his or her employment with First Allmerica or with any of its predecessors, subsidiaries or affiliates. 
		

		
			(b)Qualified Early Retirement Benefit. Those eligible Participants as described in Section (a) who retired between March 1, 2003 and May 1, 2004 shall be entitled to a subsidized early retirement benefit, to be computed as follows: 
		

		
			(i)Subsidized Plan Early Retirement Benefit. Those eligible Participants electing early retirement under Part I of the Plan shall be entitled to an increased retirement benefit commencing on their date of actual retirement, to be computed as follows: 
		

		
			The Participant’s early retirement benefit shall be computed as provided in Section 6.02 of Part I of the Plan, except as provided below: 
		

		
			Any eligible Participant may elect to retire on the first day of any month between March 1, 2003 and May 1, 2004, in which event he or she shall receive, subject to Section 6.07 of Part I of the Plan in the case of a married Participant, a monthly life annuity commencing on the date of his or her early retirement and terminating on the last regular payment date prior to his or her death. An eligible Participant may also choose one of the distribution options set forth in Section 6.06 of Part I of the Plan, with spousal consent if the Participant is married. In the case of a Participant who chooses a monthly life annuity, such benefit will be equal to the sum of (A) and (B) below: 
		

		
			(A)     A monthly life annuity benefit that is the Actuarial Equivalent (as described in Section 2.02 of Part I of the Plan) of the Participant’s Account Balance (as described in Section 4.01 of Part I of the Plan), plus 
		

		

		

		 

		

			16

		

		

			 

		

 

		
		

		
			(B)     A monthly life annuity benefit which is equal to a percentage of the Participant’s Special Grandfathered Benefit, accrued to the date of actual retirement, based on the Participant’s Age, Average Monthly Compensation and Credited Service (such Average Monthly Compensation and Credited Service being calculated in accordance with the provisions of Part I of the Plan in effect on December 31, 1994), each determined as of the date of the Participant’s early retirement. Such percentage shall be equal to the appropriate percentage determined from the Schedule below of the Special Grandfathered Benefit that would have been payable had the Participant’s date of initial eligibility for the Rule of 85 subsidized early retirement benefit (as described in Section 6.02 of Part I of the Plan) been his or her Normal Retirement Date, based on the assumption that his or her continuous employment had continued until such date, but with the actual benefit being based on the Participant’s Special Grandfathered Benefit actually accrued as of the date of early retirement. 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Retirement

					
						Age*

					
					
						 

					
					
						Percentage of Special

					
						Monthly Grand-Fathered

					
						Benefit**

				
	
					
						 

					
					
						 

				
	
					
						55

					
					
						 

					
					
						1.0000

				
	
					
						54

					
					
						 

					
					
						0.9333

				
	
					
						53

					
					
						 

					
					
						0.8667

				
	
					
						52

					
					
						 

					
					
						0.8000

				
	
					
						51

					
					
						 

					
					
						0.7333

				
	
					
						50

					
					
						 

					
					
						0.6667

				
	
					
						49

					
					
						 

					
					
						0.6333

				
	
					
						48

					
					
						 

					
					
						0.6000

				
	
					
						47

					
					
						 

					
					
						0.5667

				
	
					
						46

					
					
						 

					
					
						0.5333

				
	
					
						45

					
					
						 

					
					
						0.500

				
	
					
						 

				
	
					
						*This Schedule assumes the Participant would have been eligible for the Rule of 85 subsidized early retirement benefit at Age 55. If a Participant would have been eligible for the Rule of 85 at a date later than Age 55, the appropriate percentage shall be determined by the Plan actuary using the same assumptions used in constructing the above Schedule.

				
	
					
						 

				
	
					
						 

				
	
					
						**If a benefit commences in a month other than the month in which the Participant attains the specified Age, the percentage shall be determined by straight line interpretation.

				
	
					
						 

				
	
					
						Example. Assume an eligible Participant will attain Age 52 on January 1, 2004 and will have completed 32 Years of Credited Service on such date. Assume further that as of such date the Participant has accrued a Special Grandfathered Benefit, payable as a single life annuity, of $1,000 per month. Thus, the Participant will initially be eligible for the Rule of 85 subsidized early retirement benefit on January 1, 2007, the date the Participant will attain Age 55. Under the terms of Section 6.03, the Participant may elect to retire on January 1, 2004 and begin to receive an immediate early retirement benefit. If a single life annuity benefit is chosen, such life annuity benefit will be equal to $800 per month ($1,000 x 0.8000 = $800).

				

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			17

		

		

			 

		

 

		
		

		
			(ii)      Cost-of-Living (“COL”) Adjustments. Notwithstanding anything in Section 6.08 of Part I of the Plan to the contrary, Participants (and the Beneficiaries of Participants) who elect to retire pursuant to this Section 6.03 shall be eligible to receive COL benefits, subject to the other rules and requirements set forth in Section 6.08 of Part I of the Plan. Notwithstanding anything in Section 6.08 of Part I of the Plan to the contrary, the early retirement monthly annuity benefits described in this Section 6.03 shall be a part of a Participant’s basic plan benefit and shall be included in determining any COL adjustment to which the Participant may become entitled pursuant to Section 6.08 of Part I of the Plan. 
		

		
			6.04    Late Retirement Benefit. If a Participant shall continue in active service beyond his or her Normal Retirement Date, he or she shall continue to participate under Part I of the Plan and Trust. For Employees in ERISA Section 203(a)(3)(B) service (as described in Subsection 6.09(a) of Part I of the Plan), who continue in active employment beyond their Normal Retirement Date, retirement benefits shall be suspended, as provided in Section 6.09 of Part I of the Plan. Except as provided in Section 6.07 of Part I of the Plan in the case of a married Participant, the monthly retirement benefit payable to a Participant retiring on a late retirement date shall be a monthly life annuity commencing on the date of his or her late retirement and terminating on the last regular payment date prior to his or her death. Each late retiree’s monthly life annuity will be equal to the late retiree’s Accrued Benefit; provided that the portion of the Accrued Benefit attributable to the Participant’s Grandfathered Benefit, if any, shall equal the Participant’s Basic Grandfathered Benefit, if any, or the Participant’s Special Grandfathered Benefit” if any. 
		

		
			 
		

		
			Notwithstanding the foregoing, if this Plan is a Top Heavy Plan, if greater than the benefit described above, each Non-Key Employee who elects late retirement shall be entitled to receive a monthly late retirement benefit equal to his or her Accrued Benefit described in Section 2.01(b). 
		

		
			Notwithstanding the above, monthly annuity benefits shall commence no later than a Participant’s required beginning date (as defined in Article III of Part III of the Plan). If a Participant has not retired by his or her required beginning date, monthly retirement benefits shall commence on such date and shall be computed as described in the preceding paragraph, with benefits based on the assumption that the Participant’s required beginning date was the date of late retirement. 
		

		
			Notwithstanding the foregoing, if late retirement benefits commence after Age 70 1/2, to the extent required under Code Section 401(a)(9)(C) and regulations thereunder, a Participant’s Accrued Benefit shall be actuarially increased to take into account the period after Age 70 1/2 in which the Participant was not receiving any benefits under the Plan, including any period during which the Employee is in Section 203(a)(3)(B) service, as described in Subsection 6.09(a) of Part I of the Plan. 
		

		
			6.05   Disability Benefit. Notwithstanding anything in Part I of the Plan to the contrary, if a Participant becomes Totally Disabled while employed by the Employer as an active Participant in Part I of the Plan, such Participant shall have a 100% vested and nonforfeitable right to his or her Accrued Benefit, regardless of his or her length of service. 
		

		
			In addition, if a Participant in Part I of the Plan who is eligible for a Special Grandfathered Benefit was Totally Disabled on December 31, 1994 and before January 1, 2005, becomes Totally Disabled while employed by the Employer as an active Participant in Part I of the Plan, it shall be assumed for purposes of this Part I of the Plan that his or her employment continues from the date of the commencement of his or her total disability to the earliest of his or her Normal Retirement Date, death, termination of employment or date that he or she is no longer Totally Disabled. Prior to January 1, 2005 and while an eligible Employee is Totally Disabled, it shall be assumed for purposes of calculating the Participant’s Special Grandfathered Benefit that the Employee continues to earn monthly one-twelfth of the Compensation paid to the Participant during the 12 complete months prior to the month in which he or she ceased active service because of his or her having become Totally Disabled. 
		

		
			For purposes of Part I of the Plan “Totally Disabled” means the inability to perform the duties of any occupation for which the Employee is or becomes reasonably fitted by education, training or experience; provided,  however, in the case of an Employee receiving disability benefits under a long term disability plan sponsored by the Employer, until benefits have been paid under such policy for 24 months, such Employee will be considered Totally Disabled if he or she is unable to perform the duties of his or her occupation and is not working at any other occupation. 
		

		
			 
		

		
			6.06   Distribution of Benefits. The Plan Administrator shall direct the Trustee (or Insurer, if applicable) to commence payment of benefits provided under this Article VI of Part I of the Plan (or provided to a Former Participant pursuant to Article IX of Part I of the Plan). Plan benefits will be paid only on death, termination of service, Plan termination or retirement. 
		

		
			Except as otherwise provided in Section 6.07 of Part I of the Plan, the requirements of this Section shall apply to any distribution of a Participant’s interest and will take precedence over any inconsistent provisions of this Part I of the Plan. 
		

		
			All distributions required under the Plan shall be determined and made in accordance with the Regulations under Code Section 401(a)(9), including, to the extent applicable, the minimum distribution incidental benefit requirement of Section 1.401(a)(9)-2 of the proposed Regulations. 
		

		
			Except as provided below and in Section 6.07, a Participant’s retirement benefit shall be payable as a life annuity for the life of the Participant with no further benefits payable after the last regular payment date prior to his or her death. 
		

		
			At any time prior to actual retirement, a Participant, with spousal consent if the Participant is married, may elect to receive his or her retirement benefit under one or more of the following settlement options; provided,  however, that a Participant may not elect 
		

		 

		

			18

		

		

			 

		

 

		to have the balance of his or her Account, described in Section 4.01, distributed under more than one annuity option, or his or her Grandfathered Benefit distributed under more than one annuity option. 
		

		
			(i)       An annuity for the joint lives of the Participant and his or her spouse with 50% or 66  2/3% (whichever is specified when this option is elected) of such amount payable as an annuity for life to the survivor. No further benefits are payable after the death of both the Participant and his or her spouse. 
		

		
			(ii)      An annuity for the life of the Participant and upon his or her death 100%, 66  2/3%, or 50% (whichever is specified when this option is elected) of the annuity amount will be continued to his or her spouse as his or her contingent annuitant. No further annuity benefits are payable after the death of both the Participant and his or her spouse. 
		

		
			(iii)      An annuity for the life of the Participant with guaranteed installment payments for a period certain not longer than the life expectancy of the Participant. 
		

		
			(iv)       An annuity for the life of the Participant with guaranteed installment payments for a period certain not longer than the life expectancy of the Participant and his or her spouse. 
		

		
			(v)     Notwithstanding anything in Part I of the Plan to the contrary, a single lump sum payment in an amount equal to the Participant’s vested Account Balance on the Determination Date: provided,  however, that except as provided in (vi) below, this form of payment shall not be available with respect to the portion of the Participant’s vested Accrued Benefit attributable to the Participant’s Grandfathered Benefit, if any. In the event a Participant elects to have his or her vested Account Balance on the Determination Date payable in a lump sum, the portion of his or her Accrued Benefit attributable to his or her Grandfathered Benefit, if any, shall be paid in accordance with the otherwise applicable provisions of this Article VI of Part I of the Plan. 
		

		
			(vi)     If the present value of a Participant’s vested Grandfathered Benefit, if any, does not exceed $5,000 ($3,500 for Plan Years beginning prior to January 1, 1998), a single sum payment in an amount equal to such present value. If the present value of a Participant’s vested Grandfathered Benefit exceeds $5,000 ($3,500 for Plan Years beginning prior to January 1, 1998), only annuity options (i) through (iv) above shall be available with respect to such vested Grandfathered Benefit. 
		

		
			All optional forms of benefits shall be the Actuarial Equivalent (as of the date selected) of the normal retirement benefit described in Section 6.01 of Part I of the Plan or 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans), if applicable. Any spousal consent shall satisfy the requirements of Section 6.07. 
		

		
			Unless the Participant elects otherwise, distribution of benefits will begin no later than the 60th day after the later of the close of the Plan Year in which: 
		

		
			(i) the Participant attains Normal Retirement Age; or 
		

		
			(ii) the Participant terminates service with the Employer. 
		

		
			Notwithstanding the foregoing, the failure of a Participant and spouse (or where either the Participant or the spouse has died, the survivor) to consent to a distribution when a benefit is “immediately distributable” (as described below) shall be deemed to be an election to defer commencement of payment of any benefit sufficient to satisfy this Section 6.06 of Part I of the Plan (and provisions of Article III of Part III of the Plan). In no event will benefits begin to be distributed prior to the later of Age 62 or Normal Retirement Age without the consent of the Participant. The consent of the Participant’s spouse will also be required for any such distribution unless the benefit is paid in the form of a Qualified Joint and Survivor Annuity. Any spousal consent shall satisfy the requirements of Section 6.07, and no involuntary cash-outs shall be made in any amount on or after March 28, 2005. 
		

		
			If the Accrued Benefit is immediately distributable, the Participant and the Participant’s spouse (or where either the Participant or the spouse has died, the survivor) must consent to any distribution of such Accrued Benefit. The consent of the Participant and the Participant’s spouse shall be obtained in writing within the 90-day period (180-day period for Plan Years beginning January 1, 2007 and thereafter) ending on the annuity starting date. The “annuity starting date” is the first day of the first period for which an amount is paid as an annuity or any other form. The Plan Administrator shall notify the Participant and the Participant’s spouse of the right to defer any distribution until the Participant’s Accrued Benefit is no longer immediately distributable. Such notification shall include a general description of the material features, and an explanation of the relative values of, the optional forms of benefit available under the Plan in a manner that would satisfy the notice requirements of Section 417(a)(3) of the Code, and shall be provided no less than 30 days and no more than 90 days (180 days for Plan Years beginning January 1, 2007 and thereafter) prior to the annuity starting date. 
		

		
			Notwithstanding the foregoing, only the Participant need consent to the commencement of a distribution in the form of a Qualified Joint and Survivor Annuity while the Accrued Benefit is immediately distributable. Neither the consent of the Participant nor the Participant’s spouse shall be required to the extent that a distribution is required to satisfy Section 401(a)(9) or Section 415 of the Code. 
		

		
			An Accrued Benefit is immediately distributable if any part of the Accrued Benefit could be distributed to the Participant (or surviving spouse) before the Participant attains (or would have attained if not deceased) the later of Normal Retirement Age or Age 62. 
		

		

		

		 

		

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		Notwithstanding the above the entire interest of a Participant or a Beneficiary must be distributed in accordance with the minimum required distribution rules set forth in Article III of Part III of the Plan. 
		

		
			6.07   Qualified Joint and Survivor Annuity for Married Participants.  
		

		
			(a)General Rules. Notwithstanding anything in this Article to the contrary, unless a married Participant’s Accrued Benefit has been paid in a lump sum pursuant to Section 6.06 above, such Participant’s retirement benefit will be payable to the Participant and his or her spouse in the form of a Qualified Joint and Survivor Annuity, with the survivor to receive 100% of the benefit which had been payable during their joint lives, unless an optional form of benefit is selected pursuant to a qualified election within the 90-day period (180-day period for Plan Years beginning January 1, 2007 and thereafter) ending on the annuity starting date. In the case of an unmarried Participant, unless the Participant elects an optional form of benefit the Participant’s retirement benefit will be paid in the form of a no-death benefit life annuity. 
		

		
			(b)Definitions.  
		

		
			(i) Qualified election: A waiver of a Qualified Joint and Survivor Annuity. Any waiver of a Qualified Joint and Survivor Annuity shall not be effective unless: (A) the Participant’s spouse consents in writing to the election; (B) the election designates a specific Beneficiary, including any class of Beneficiaries or any contingent Beneficiaries, which may not be changed without spousal consent (or the spouse expressly permits designations by the Participant without any further spousal consent); (C) the spouse’s consent acknowledges the effect of the election; and (D) the spouse’s consent is witnessed by a Plan representative or notary public. Additionally, a Participant’s waiver of the Qualified Joint and Survivor Annuity will not be effective unless the election designates a form of benefit payment which may not be changed without spousal consent (or the spouse expressly permits designations by the Participant without any further spousal consent). If it is established to the satisfaction of a Plan representative that there is no spouse or that the spouse cannot be located, a waiver will be deemed a qualified election. 
		

		
			Any consent by a spouse obtained under this Subsection (or establishment that the consent of a spouse may not be obtained) shall be effective only with respect to such spouse. A consent that permits designations by the Participant without any requirement of further consent by such spouse must acknowledge that the spouse has the right to limit consent to a specific Beneficiary, and a specific form of benefit where applicable, and that the spouse voluntarily elects to relinquish either or both of such rights. A revocation of a prior waiver may be made by a Participant without the consent of the spouse at any time before the commencement of benefits. The number of revocations shall not be limited. No consent obtained under this provision shall be valid unless the Participant has received notice as provided in Subsection (c) below. 
		

		
			(ii) Spouse (surviving spouse): the opposite-gender person, if any, to whom the Participant is lawfully married at the date of his death or at his annuity starting date, whichever is earlier, provided that a former spouse will be treated as the spouse or surviving spouse to the extent provided under a Qualified Domestic Relations Order. 
		

		
			(iii) Annuity starting date: The first day of the first period for which an amount is paid as an annuity or under any other form. 
		

		
			(c)Notice Requirement.  
		

		
			(i) In the case of a Qualified Joint and Survivor Annuity as described in Subsection (a), the Plan Administrator shall provide each Participant no less than 30 days and no more than 90 days (180 days for Plan Years beginning January 1, 2007 and thereafter) prior to the annuity starting date a written explanation of: (A) the terms and conditions of a Qualified Joint and Survivor Annuity; (B) the Participant’s right to make and the effect of an election to waive the Qualified Joint and Survivor Annuity form of benefit; (C) the rights of a Participant’s spouse; (D) the right to make, and the effect of, a revocation of a previous election to waive the Qualified Joint and Survivor Annuity; and (E) the relative values of the various optional forms of benefit under the Plan. Notices given to Participants pursuant to Code Section 411(a)(11) in Plan Years beginning after December 31, 2006 shall include a description of how much larger benefits will be if the commencement of distributions is deferred. 
		

		

		

		 

		

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			(ii) A Participant may commence receiving a distribution in a form other than a Qualified Joint and Survivor Annuity less than 30 days after receipt of the written explanation described in the preceding paragraph provided: (A) the Participant has been provided with information that clearly indicates that the Participant has at least 30 days to consider whether to waive the Qualified Joint and Survivor Annuity and elect (with spousal consent) a form of distribution other than a Qualified Joint and Survivor Annuity; (B) the Participant is permitted to revoke any affirmative distribution election at least until the Distribution Commencement Date or, if later, at any time prior to the expiration of the 7-day period that begins the day after the explanation of the Qualified Joint and Survivor Annuity is provided to the Participant; and (C) the Distribution Commencement Date is after the date the written explanation was provided to the Participant. For distributions on or after December 31, 1996, the Distribution Commencement Date may be a date prior to the date the written explanation is provided to the Participant if the distribution does not commence until at least 30 days after such written explanation is provided, subject to the waiver of the 30-day period. For the purposes of this paragraph, the “Distribution Commencement Date” is the date a Participant commences distributions from the Plan. If a Participant commences distribution with respect to a portion of his/her Account Balance, a separate Distribution Commencement Date applies to any subsequent distribution. If distribution is made in the form of an annuity, the Distribution Commencement Date is the first day of the first period for which annuity payments are made. 
		

		
			(d)Applicability. The provisions of this Section 6.07 shall apply to any Participant who is credited with at least one Hour of Service with the Employer on or after January 1, 1976. In addition, any living Participant or Former Participant not receiving benefits under Part I of the Plan on August 23, 1984 who would otherwise not receive the benefits prescribed by this Section 6.07 shall be given the opportunity to elect to have the provisions of this Section apply provided such Participant or Former Participant was credited with at least one Hour of Service under this Part I of the Plan or a predecessor plan on or after September 2, 1974. 
		

		
			The opportunity to elect a Qualified Joint and Survivor retirement option must be afforded to the appropriate Participants or Former Participants during the period commencing on August 23, 1984 and ending on the dates benefits would otherwise commence to such person. 
		

		
			6.08   Supplementary Pension Benefits. Effective July 1, 1986, and on each July 1 thereafter, the amount of monthly retirement benefits payable to eligible retirees (as described below) or their Beneficiaries shall be increased by a percentage determined in accordance with the following formula: 
		

		
			Percentage Increase = .8 (M - .07) x 100 
		

		
			For Plan Years beginning after December 31, 2008, for purposes of the above formula, “M” equals the annual coupon return on December 31, 2009 and on each December 31 thereafter of the Barclays Capital U.S. Government/Credit 5-10 Year Index, or its successor. 
		

		
			 
		

		
			For Plan Years beginning after December 31, 1997 and prior to January 1, 2009, for purposes of the above formula, “M” equaled the earnings rate for the prior Plan Year on assets representing retired life reserves for retirees of First Allmerica, Citizens and Hanover. Additionally, retired life reserve assets of the Agents’ Pension Plan (Part II of the Plan) and retired life reserve assets attributable to retirees of General Agents of First Allmerica and retirees of Beacon Insurance Company of America (“Beacon”), formerly an affiliate of Hanover, shall be aggregated and combined with the retired life reserve assets of this Part I of the Plan. 
		

		
			For Plan Years beginning prior to January 1, 1998, for purposes of the above formula, “M” equaled the earnings rate for the prior Plan Year on assets representing retired life reserves for retirees of each Employer. The formula shall be applied separately and retired life reserves shall be determined separately for each Employer; provided,  however, (i) that for retirees of First Allmerica and its General Agents who have adopted this Part I of the Plan, retired life reserve assets shall be aggregated and combined with the retired life reserve assets of The First Allmerica Agents’ Pension Plan (Part II of the Plan) and (ii) for Plan Years beginning after December 31, 1992, the retired life reserve assets of Beacon shall be combined with the retired life reserve assets of Hanover. 
		

		
			For the Plan Years for which “M” depended on the returns of designated retired life reserve assets, the earnings rate on retired life reserve assets was to be determined by an actuary, using the “investment year block” method of crediting interest that First Allmerica used to credit interest on its Experience Rated group annuity contracts that were in force on an active basis. The resulting earnings rate(s) should neither be associated with nor construed as the investment yield (all or in part) of the pension fund. 
		

		
			For each Plan Year for which “M” depended on the returns of designated retired life reserve assets, the retired life reserve assets for newly qualified retirees to be added to the total retired life assets outstanding was to be determined using a 7% interest rate and the 1971 GAM mortality table. 
		

		
			The determination of “M” and of the overall earning rate(s) shall be final and conclusively binding for all persons. 
		

		

		

		 

		

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		The effective date for the payment of supplemental pension benefits paid as a result of this Section shall be each July 1, commencing with July 1, 1986. Those eligible to receive supplemental pension benefits as a result of this Section shall be those retirees of First Allmerica, Citizens, Hanover and General Agents of First Allmerica (and their Beneficiaries) who were receiving basic retirement benefits under Part I of the Plan on the July 1 increase effective date, had been retired for at least 18 months on such increase effective date, and: 
		

		
			(i) had elected an immediate early retirement benefit pursuant to Section 6.02 (or its successor, if any) 
		

		
			 
		

		
			(ii) had terminated employment after having met the eligibility requirements for early retirement specified in Section 6.02 (or its successor, if any) and elected to defer receipt of retirement benefits: or 
		

		
			(iii) had retired on or after their Normal Retirement Age after having completed at least 15 years of Credited Service. 
		

		
			The Beneficiaries of any retiree meeting the above requirements shall be entitled to receive a supplemental pension benefit under this Section if the Beneficiaries were receiving survivor benefits under Part I of the Plan on the July 1 increase effective date. 
		

		
			A supplemental pension benefit determined under this Section shall be added to and become a part of the recipient’s basic benefit under Part I of the Plan and shall be payable during such period and under such option as the basic benefit under Part I of the Plan is being paid. 
		

		
			6.09   Suspension of Retirement Benefits.  
		

		
			(a)Suspension of Benefits. Except as provided below, Normal, Early or Late Retirement Benefits will be suspended for each calendar month during which an Employee or Eligible Re-employed Pensioner (a “Pensioner”) completes more than 80 Hours of Service as described in Subsection 2.23(a) and (b) with an Employer in a job or position in which the Employee or Pensioner is eligible to participate in Part I of the Plan (hereinafter Section 203(a)(3)(B) service). 
		

		
			For purposes of this Section 6.09 of Part I of the Plan, an “Eligible Re-employed Pensioner” means (i) a retiree of First Allmerica or a retiree of a General Agent of First Allmerica who is re-employed by First Allmerica, Citizens or Hanover on or after January 1, 1988 or (ii) a retiree of Citizens or Hanover who is re-employed by First Allmerica, Citizens or Hanover on or after January 1, 1993 and (iii) for Plan Years beginning after December 31, 1988, who had not attained Age 70; provided,  that (i) benefits will not be suspended during the calendar month a Pensioner first retires from the Employer, regardless of the number of Hours of Service completed by the Pensioner during such month, and (ii) this Section shall not apply to the Top-Heavy Plan minimum benefits to which any Non-Key Employee may be entitled under the top-heavy rules of Section 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans). 
		

		
			(b)Amount Suspended. The benefit suspended shall be equal to the portion of the Employee’s or Pensioner’s monthly annuity benefit derived from Employer contributions, including any temporary early retirement supplement. 
		

		
			(c)Resumption of payment. If retirement benefit payments have been suspended, payments shall resume no later than the first day of the third calendar month after the calendar month in which the Employee or Pensioner ceases to be employed in ERISA Section 203(a)(3)(B) service. The initial payment upon resumption shall include the payment scheduled to occur in the calendar month when payments resume and any amounts withheld during the period between the cessation of ERISA Section 203(a)(3)(B) service and the resumption of payments. 
		

		
			 
		

		
			Provided, that there shall be an offset from any payments to be resumed for the amount of any retirement benefits that had been paid but which should have been withheld under the suspension rules of this Section 6.09. In no event may the offset exceed in any one month more than 25 percent of the amount that would otherwise be payable under Part I of the Plan (excluding the first payment made after resumption which may be offset without limitation). The amount to be resumed shall be the greater of the benefit amount suspended or a benefit computed as described in Sections 6.01 or 6.02 or 6.04, as appropriate, but based on the pensioner’s Age (and any joint or contingent annuitant’s Age), Credited Service and Compensation on the date of resumption. 
		

		
			(d)Notification. Notwithstanding anything in Part I of the Plan to the contrary, effective January 1, 2007, no retirement benefits (Early, Normal or Late) shall be withheld by the Plan unless the Employee or Pensioner is notified by personal delivery or first class mail during the first calendar month in which the Plan withholds payments that his or her benefits are suspended. 
		

		
			(e)Such notifications shall contain a description of the specific reasons why benefit payments are being suspended, a description of the plan provisions relating to the suspension of payments, a copy of such provisions, and a statement to the effect that applicable Department of Labor regulations may be found in Section 2530.203-3 of the Labor Regulations. 
		

		
			In addition, the notice shall inform the Employee or Pensioner of the Plan’s procedures for affording a review of the suspension of benefits. Requests for such reviews may be considered in accordance with the claims procedure adopted by the Plan, as described in Article VIII of Part III of the Plan. 
		

		

		

		 

		

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		6.10   Rollovers to Other Qualified Plans.  
		

		
			(a)Notwithstanding any provision of Part I of the Plan to the contrary that would otherwise limit a distributee’s election under this Article or under Articles VII and VIII of Part III of the Plan, a distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. 
		

		
			(b)Definitions.  
		

		
			(i) Eligible rollover distribution: An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee’s designated Beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Code; the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); and any other distribution(s) that is reasonably expected to total less than $200 during a year. A portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be transferred only to (i) an individual retirement account or annuity described in Section 408(a) or (b) of the Internal Revenue Code; (ii) for taxable years beginning after December 31, 2001 and before January 1, 2007, to a qualified trust which is part of a defined contribution plan that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible; or (iii) for taxable years beginning after December 31, 2006, to a qualified trust or to an annuity contract described in Section 403(b) of the Internal Revenue Code, if such trust or contract provides for separate accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. 
		

		
			(ii) Eligible retirement plan: An eligible retirement plan is an individual retirement account described in Section 408(a) of the Code, an individual retirement annuity described in Section 408(b) of the Code, a Roth IRA as pursuant to in Section 408A(e) of the Code, an annuity contract described in Section 403(b) of the Code, an annuity plan described in Section 403(a) of the Code, a qualified plan described in Section 401(a) of the Code, that accepts the distributee’s eligible rollover distribution or an eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this Plan. However, in the case of an eligible rollover distribution to the surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity. 
		

		
			(iii) Distributee: A distributee includes an Employee or former Employee. In addition, the Employee’s or former Employee’s surviving spouse and the Employee’s surviving spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Code, are distributees with regard to the interest of the spouse or former spouse. 
		

		
			(iv)    Direct rollover: A direct rollover is a payment by the Plan to the eligible retirement plan specified by the distributee. 
		

		
			 
		

		
			(c)For distributions after June 9, 2009, a non-spouse Beneficiary who is a “designated beneficiary” under Code Section 401(a)(9)(E) and the regulations thereunder, by a direct trustee-to-trustee transfer (“direct rollover”), may roll over all or any portion of his or her distribution to an individual retirement account the Beneficiary establishes for purposes of receiving the distribution. In order to do a direct rollover of the distribution, the distribution otherwise must satisfy the definition of an eligible rollover distribution. 
		

		
			Although a non-spouse Beneficiary may roll over directly a distribution as provided above, any distribution made prior to January 1, 2010 is not subject to the direct rollover requirements of Code Section 401(a)(31) (including Code Section 401(a)(31)(B), the notice requirements of Code Section 402(f) or the mandatory withholding requirements of Code Section 3405(c)). If a non-spouse Beneficiary receives a distribution from the Plan, the distribution is not eligible for a “60-day” rollover. 
		

		
			If the Participant’s named Beneficiary is a trust, the Plan may make a direct rollover to an individual retirement account on behalf of the trust, provided the trust satisfies the requirements to be a “designated beneficiary” within the meaning of Code Section 401(a)(9)(E). 
		

		

		

		 

		

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			A non-spouse Beneficiary may not roll over an amount which is a required minimum distribution, as determined under applicable Treasury Regulations and other Internal Revenue Service guidance. If the Participant dies before his or her required beginning date and the non-spouse Beneficiary rolls over to an IRA the maximum amount eligible for rollover, the Beneficiary may elect to use either the 5-year rule or the life expectancy rule, pursuant to Treasury Regulation Section 1.401(a)(9)-3, A-4(c), in determining the required minimum distributions from the IRA that receives the non-spouse Beneficiary’s distribution. 
		

		
			ARTICLE VII
		

		
			DEATH BENEFITS
		

		
			7.01   Pre-Retirement Death Benefits.  
		

		
			(a)General Rules. The provisions of this Section shall apply to any Participant or Former Participant provided that such Participant or Former Participant completes at least one Hour of Service on or after January 1, 1995. 
		

		
			(i) If a married Participant who has satisfied the eligibility requirements for an early retirement benefit or normal retirement benefit dies (regardless of whether the Participant is still working for the Employer) before beginning to receive such benefits, then the Participant’s surviving spouse will receive a monthly retirement benefit equal to the sum of: 
		

		
			(A)     the portion of the Accrued Benefit attributable to the Participant’s Grandfathered Benefit, if any, that would have been payable if the Participant had retired on the day before his or her death after having elected an immediate Qualified Joint and Survivor Annuity Option with a 50% continuation of monthly benefits to be payable to the survivor; and 
		

		
			 
		

		
			(B)     the Actuarial Equivalent annuity (payable on the Participant’s death) of the portion of the vested Accrued Benefit attributable to the Participant’s Projected Account Balance. 
		

		
			The amount of such benefit shall be payable monthly for the life of the spouse, with the first payment payable as of the date of the Participant’s death, unless the spouse requests a later commencement date (consistent with the provisions of the Part I of the Plan). 
		

		
			(ii) If a fully or partially vested married Participant dies on or before attaining eligibility for early retirement, the Participant’s surviving spouse will receive a monthly retirement benefit equal to the sum of (A) and (B) below. 
		

		
			(A)     The portion of the Accrued Benefit attributable to the Participant’s Grandfathered Benefit, if any, which would be payable if the Participant had: 
		

		
			(1)separated from service on the date of death; 
		

		
			(2)survived to Age 55 (if younger than Age 55 on the date of death); 
		

		
			(3)retired at Age 55 (or retired on the day before his or her death, if older than Age 55 at the date of death) after having elected an immediate Qualified Joint and Survivor Annuity Option with a 50% continuation of monthly benefits to be payable to the survivor; and 
		

		
			(4)died on the day after retirement. 
		

		
			(B)     the Actuarial Equivalent annuity (payable when the Participant would have attained age 55) of the portion of the vested Accrued Benefit attributable to the Participant’s Projected Account Balance. 
		

		
			A surviving spouse entitled to benefits under this paragraph (ii) will begin to receive payments on the first day of the month following the date the Participant would have attained Age 55 (or on the first day of the month following the date of death, if the Participant was Age 55 or older on the date of his or her death), unless the spouse requests an earlier or later commencement date (consistent with the provisions of Part I of the Plan). 
		

		
			 
		

		
			For purposes of this paragraph (ii), the “earliest retirement age” is the earliest date on which, under Part I of the Plan, the Participant could elect to receive retirement benefits attributable to his or her Grandfathered Benefit. 
		

		

		

		 

		

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			The surviving spouse of a Participant who is entitled to receive a pre-retirement death benefit as described in paragraph (a)(i) or (a)(ii) above, may, in lieu of receiving such benefit, elect to receive the portion of such death benefit which is the Participant’s Account Balance on the Determination Date in a single sum amount. Such single sum benefit shall be distributed as soon as practicable after the date of the Participant’s death (or at any later date, as elected by the surviving spouse, consistent with the provisions of Part I of the Plan) and shall be in an amount equal to the Account Balance as of the Determination Date. Alternatively, the surviving spouse may elect to have the Actuarial Equivalent of the pre-retirement death benefit (or the Actuarial Equivalent of the Grandfathered Benefit, if the Account Balance is to be paid as a single sum) payable commencing as of the date of the Participant’s death (or at any later date as elected by the surviving spouse, consistent with the provisions of Part I of the Plan) in any of the other optional forms of payment available under Section 6.06 of Part I of the Plan. In the event that a surviving spouse elects to have the portion of his or her benefit attributable to the Participant’s Account Balance payable in a lump sum in accordance with this paragraph, the balance of the death benefit otherwise payable under Part I of the Plan in accordance with paragraph (a)(i) or (a)(ii) above, shall consist solely of that portion of such death benefit that is attributable to the Participant’s Grandfathered Benefit, if any. 
		

		
			Any surviving spouse described in the preceding paragraph who elects to receive the Participant’s Account Balance in a single sum payment may also elect to receive the present value of the Participant’s Grandfathered Benefit, if any, in a single sum amount; provided, however, that this option with respect to a Grandfathered Benefit shall only be available to a surviving spouse if the present value of the Grandfathered Benefit does not exceed $5,000 ($3,500 for Plan Years beginning prior to January 1, 1998). Any such single sum benefit shall be distributed as soon as practicable after the date of the Participant’s death. 
		

		
			If a Participant, on or after the earlier of the first day of the Plan Year in which he or she attains age 35 or the date of his or her separation from service and prior to his or her death, elects to waive the pre-retirement death benefit which is attributable to the Participant’s Projected Account Balance and the participant’s spouse consents to the waiver in accordance with Section 6.07(b)(i) (as if the pre-retirement death benefit waiver was a waiver of a Qualified Joint and Survivor Annuity), the Participant may designate a Beneficiary other than his or her spouse to receive the portion of the Participant’s pre-retirement death benefit which is attributable to the Participant’s Projected Account Balance. 
		

		
			 
		

		
			Any such designation shall be in writing on a form provided by or satisfactory to the Plan Administrator, and such designation may include primary and contingent Beneficiaries. Such benefit shall be paid in the form of a lump sum as soon as practicable after the death of the Participant and shall equal the Participant’s Account Balance at the Determination Date. In the event that a portion of a Participant’s benefit under the Plan is payable to a non-spouse Beneficiary in accordance with this paragraph, the remaining portion of the death benefit attributable to such Participant shall be paid to the Participant’s surviving spouse in accordance with paragraphs (a)(i) and (a)(ii) above, as applicable. Before a Participant is permitted to waive the pre-retirement death benefit which is attributable to the Participant’s Account Balance, the Plan Administrator shall provide each Participant a written explanation with respect to the pre-retirement death benefit comparable to that described in Section 6.07(c)(i). 
		

		
			(b)Unmarried Participants. If any unmarried Participant dies in any of the circumstances described in paragraphs (a)(i) or (a)(ii) above with respect to married Participants, the Beneficiary (designated in accordance with the rules described in (a) above) of such Participant shall receive a death benefit in a single sum as soon as practicable after the date of the Participant’s death. The amount of such death benefit shall be equal to the Participant’s Account Balance at the Determination Date. There shall be no death benefit payable with respect to the Grandfathered Benefits of any such Participant. 
		

		
			7.02   Death Benefits for Certain Dependent Spouses (Applicable only to certain Employees entitled to Special Grandfathered Benefits).  
		

		
			(a)Eligibility. The spouse of a deceased Employee (including the spouse of any such deceased Employee who had become and continuously remained Totally Disabled [as described in Section 6.05] until death) shall be entitled to a monthly income as set forth in Subsection (b) hereof, provided:  
		

		
			(i)        The spouse was married to, living with and was a dependent of the Employee for at least the three year period immediately preceding the death of the Employee. For purposes of this Section 7.02 dependency shall be assumed only if the average earned income of the spouse during such three year period was less than the average earned income of the Employee during the same three year period; 
		

		
			(ii)       The Employee had attained Age 50 prior to the date of death; 
		

		
			(iii)     The Employee was an employee of First Allmerica or a General Agent of First Allmerica prior to January 1, 1976 and had not thereafter retired or attained Age 65 and since December 31, 1975 was continuously employed with the Employer until the date of his or her death; 
		

		
			 
		

		

		

		 

		

			25

		

		

			 

		

 

		(iv)     The Employee was eligible to accrue additional Special Grandfathered Benefits (as described in Subsection 2.20(b)) on December 31, 2004 (or on the date of his or her death, if earlier); and 
		

		
			(v)       The Employee was not a Highly Compensated Employee on the date of his or her death. 
		

		
			Whether or not a spouse qualifies as a “dependent spouse” shall be determined by the Plan Administrator, whose determination shall be conclusive and binding on all persons. If an Employee or spouse is totally disabled (as described in Section 6.05), the “average earned income” of the disabled person shall be determined as of the date the Total Disability commenced. The term “earned income” for a year means a person’s Compensation as defined in Section 2.08(b) paid during the year plus the sum of (i) any salary reduction contributions allocated during the year on the person’s behalf to any tax sheltered annuity qualified under Section 403(b) of the Code or to any defined contribution plan qualified under Section 401(k) of the Code maintained by the person’s employer and (ii) the amount of any salary reduction contributions contributed on the person’s behalf during the year to any Code Section 125 plan maintained by the person’s employer. 
		

		
			(b)Amount of Benefit. The benefit to spouses qualifying under Subsection (a) shall be a monthly income commencing as of the date of the death of the Employee, in an amount equal to (i) less (ii) below: 
		

		
			(i) the applicable percentage below of the Special Grandfathered Benefit which the Employee would have received at his or her Normal Retirement Date had the Employee lived and remained a Participant in Part I of the Plan until such date and had the Participant continued to earn monthly one-twelfth of the Compensation paid to the Participant during the 12 complete months prior to the month in which occurred the date of his or her death. 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Number of Completed Years

					
						Over Employee’s Age 49 at

					
						Date of Employee’s Death

					
					
						 

					
					
						Percentage of

					
						Grandfathered

					
						Retirement Benefit*

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
						 

					
						1.................................................

					
					
						 

					
					
						 

					
					
						 

					
					
						10%

				
	
					
						 

					
						 

					
						2.................................................

					
					
						 

					
					
						 

					
					
						 

					
					
						20%

				
	
					
						 

					
						 

					
						3.................................................

					
					
						 

					
					
						 

					
					
						 

					
					
						30%

				
	
					
						 

					
						 

					
						4.................................................

					
					
						 

					
					
						 

					
					
						 

					
					
						40%

				
	
					
						 

					
						 

					
						5 and over...................................

					
					
						 

					
					
						 

					
					
						 

					
					
						50%; less

				
	
					
						*If death occurs in a month other than the month in which the Participant attains the specified Age, the percentage shall be determined based on straight line interpolation.

				

		
			 
		

		
			(ii) the amount of any benefits provided to the surviving spouse pursuant to Section 7.01 attributable to the Employee’s Special Grandfathered Benefit. 
		

		

		

		 

		

			26

		

		

			 

		

 

		
		

		
			ARTICLE VIII
		

		
			BENEFITS UPON TERMINATION FROM SERVICE
		

		
			8.01   In General. In the event that a Participant shall terminate from service with the Employer for any reason other than death, Normal, Early or Late Retirement, the interests and rights of such Participant shall be limited to those contained in this Article. 
		

		
			8.02   Termination Benefits. Upon any separation from service described in Section 8.01, a Participant shall be entitled to a benefit under Part I of the Plan, payable at his or her Normal Retirement Date, equal to the vesting percentage specified below of the Participant’s Accrued Benefit. The automatic form of benefit shall be a Qualified Joint and Survivor Annuity, with the survivor to receive 100% of the benefit which had been payable during their joint lives, if the Participant is married at the time of commencement of benefits, or a single life annuity if the Participant is not married at the time of commencement. With spousal consent, the Participant may elect to have his or her benefit paid in any of the optional forms described in Section 6.06. The amount of any annuity attributable to a Participant’s vested Account Balance shall be the Actuarial Equivalent of such vested Account Balance. 
		

		
			Vesting Percentages 
		

		
			(a)With respect to the portion of the Accrued Benefit attributable to such Participant’s Grandfathered Benefit, if any: 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Completed Years of Service

					
					
						 

					
					
						Nonforfeitable

					
						Percentage

				
	
					
						 

					
					
						 

				
	
					
						Less than 5.......................................................................................

					
					
						 

					
					
						0

				
	
					
						                 5 or more.........................................................................

					
					
						 

					
					
						100

				

		
			 
		

		
			(b)With respect to the portion of the Accrued Benefit attributable to such Participant’s Projected Account Balance: 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Completed Years of Service

					
					
						 

					
					
						Nonforfeitable

					
						Percentage

				
	
					
						 

					
					
						 

				
	
					
						Less than 2.......................................................................................

					
					
						 

					
					
						0

				
	
					
						                 2.....................................................................................

					
					
						 

					
					
						25

				
	
					
						                 3.....................................................................................

					
					
						 

					
					
						50

				
	
					
						                 4.....................................................................................

					
					
						 

					
					
						75

				
	
					
						                 5 or more.........................................................................

					
					
						 

					
					
						100

				

		
			 
		

		
			 
		

		
			Notwithstanding the above, if the Plan is a Top Heavy Plan, then the Plan shall meet the following vesting requirements for such Plan Year and for all subsequent Plan Years, even if the Plan is not a Top Heavy Plan for such subsequent Plan Years. 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Completed Years of Service

					
					
						 

					
					
						Nonforfeitable

					
						Percentage

				
	
					
						 

					
					
						 

				
	
					
						Less than 2.......................................................................................

					
					
						 

					
					
						0

				
	
					
						                  2.....................................................................................

					
					
						 

					
					
						25

				
	
					
						                  3.....................................................................................

					
					
						 

					
					
						50

				
	
					
						                  4.....................................................................................

					
					
						 

					
					
						75

				
	
					
						                  5 or more.........................................................................

					
					
						 

					
					
						100

				

		
			 
		

		
			Notwithstanding anything in Part I of the Plan to the contrary, effective on August 17, 2006, for those Participants employed by the Employer on or after such date, such Participants shall be 25% vested in their Account Balance, as defined in Section 4.01, upon completion of two (2) Years of Service and 100% vested in their Accrued Benefit, as described in Section 2.01, upon completion of three (3) Years of Service. 
		

		
			For purposes of this Article, Years of Service means Plan Years during which an Employee was credited with at least 1,000 Hours of Service. 
		

		

		

		 

		

			27

		

		

			 

		

 

		
		

		
			Notwithstanding the foregoing, a Participant who is entitled to a deferred Normal Retirement Benefit may elect to receive his or her vested Account Balance on the Determination Date in a single lump sum. In addition, if a Participant makes an election described in the immediately preceding sentence and if the present value of the portion of the vested Accrued Benefit attributable to such Participant’s vested Grandfathered Benefit does not exceed $3,500 ($5,000 for Plan Years beginning on and after January 1, 1998), the Participant may elect to receive such portion of his or her vested Accrued Benefit attributable to the Grandfathered Benefit in a lump sum. Any such Participant may elect to receive either such lump sum at any time after separation from service and, in the case of a single lump sum distribution of his or her vested Account Balance, must receive such benefit no later than the time at which benefits attributable to the Participant’s Grandfathered Benefit, if any, commences. Any such election shall be subject to spousal consent in the case of a married Participant. Any spousal consent must satisfy the requirement of Section 6.07. In the event a Participant elects to have his or her vested Account Balance paid in a lump sum, the portion of such Participant’s vested Accrued Benefit attributable to his or her Grandfathered Benefit, if any, shall be paid in accordance with the otherwise applicable provisions of Section 6.06 (and of Article III of Part III of the Plan). 
		

		
			Notwithstanding anything in Part I of the Plan to the contrary, an actively employed Participant’s Accrued Benefit shall become 100% vested and non-forfeitable upon the earliest of (i) the date of such Participant’s death; (ii) the date such a Participant becomes Totally Disabled (within the meaning of Section 6.05 of Part I of the Plan); or (iii) the date such a Participant attains his or her Normal Retirement Age. 
		

		
			Any distributions under this Article shall be subject to the requirements of Sections 6.06 and 6.07, including the requirement that a Participant shall be eligible to receive any form of distribution provided for under Section 6.06 of Part I of the Plan at such time as he or she is eligible to receive his or her vested Account Balance in a lump sum. 
		

		
			8.03    Forfeitures. The non-vested portion of a Participant’s Accrued Benefit shall be treated as a forfeiture when the Participant or his or her spouse (or surviving spouse) receives a distribution of the present value of his or her vested Accrued Benefit, pursuant to Section 8.02 of Part I of the Plan and the Participant’s service attributable to such distribution shall be disregarded as provided for in Section 8.07 of Part I of the Plan. For purposes of this Section, if the present value of a Participant’s vested Accrued Benefit is zero, the Participant shall be deemed to have received a distribution of such vested Accrued Benefit. 
		

		
			In the case of a partially vested terminated Participant who does not receive a distribution pursuant to the above paragraph, the value of the nonvested portion of his Accrued Benefit shall be treated as a forfeiture at the end of the Plan Year in which the Participant incurs a One Year Break in Service until the Participant has completed one Year of Service after he has been re-employed. 
		

		
			Forfeitures will be used to reduce (i) Employer contributions for the Plan Year following the Plan Year in which the forfeiture occurs; and or (ii) the Employer’s costs under the Plan. 
		

		
			8.04      Resumption of Service. A Participant who terminates his or her participation in Part I of the Plan and who subsequently resumes service with the Employer will again become a Participant on the entry date determined in accordance with Section 3.01(b) of Part I of the Plan. 
		

		
			8.05    Service with Affiliates. As provided in Section 2.23, in determining a Participant’s vesting percentage, Hours of Service completed with an Affiliate or as a Career Agent or General Agent of First Allmerica shall be deemed to be Hours of Service completed with the Employer. 
		

		
			8.06      Distribution of Benefits. On the Former Participant’s Normal Retirement Date, benefits to which he or she is entitled pursuant to this Article shall be distributed in accordance with Article VI. 
		

		
			If a Former Participant entitled to a deferred benefit pursuant to this Article VIII dies prior to his or her Normal Retirement Date, the death benefit, if any, to which he or she is entitled shall be as is specified in Article VII. 
		

		
			 
		

		
			8.07   Cash Out Repayment Option.  
		

		
			(a)Notwithstanding anything in this Article or in Section 2.01 to the contrary, unless a repayment has been made in accordance with Subsection (b) below, in determining a partially vested Employee’s Grandfathered Benefit (or, in the case of a Top Heavy Plan, the minimum benefit for Non-Key Employees described in Subsection 2.01(b)) after a resumption of participation, periods of service with respect to which the Employee received a distribution of the present value of his or her vested Accrued Benefit shall be disregarded. 
		

		

		

		 

		

			28

		

		

			 

		

 

		
		

		
			(b)In the case of the distribution of the present value of a partially vested Employee’s vested Accrued Benefit in accordance with Section 8.02, the Employee’s Accrued Benefit described in Subsections 2.01(a) and (b) (including all optional forms of benefits and subsidies relating to such benefits) shall be restored if the Employee repays the amount distributed plus interest, if applicable, compounded annually from the date of distribution at the rate of 5 percent. In determining the amount of any required repayment, interest shall be charged on the portion of any distribution attributable to a Participant’s Grandfathered Benefit, if any or, in the case of a Top Heavy Plan, on the portion of any distribution that is a minimum benefit for Non-Key Employees described in Subsection 2.01(b). No interest shall be payable with respect to the portion of a Participant’s distribution attributable to his or her Account Balance. Such repayment must be made by the Employee before the earlier of five years after the first date on which the Employee is subsequently reemployed by the Employer, or the date the Employee incurs five consecutive One Year Breaks in Service following the date of distribution. 
		

		
			If an Employee is deemed to receive a distribution pursuant to this Article, and the Employee resumes employment covered under this Plan before the date the Participant incurs 5 consecutive One-Year Breaks in Service, upon the reemployment of such Employee, the Employer-derived Accrued Benefit will be restored to the amount of such Accrued Benefit on the date of the deemed distribution. 
		

		
			8.08    Early Retirement Election. Any Participant who terminates service after having completed at least fifteen Years of Service may elect to retire on the first day of any month following his or her 55th birthday, as described in Section 6.02. 
		

		
			8.09   Amendment to Vesting Schedule. If the Vesting Schedule of the Plan is amended, or the Plan is amended in any way that directly or indirectly affects the computation of a Participant’s nonforfeitable percentage, or if the Plan is deemed amended by an automatic change to or from a top-heavy vesting schedule, each Participant with at least 3 Years of Service with the Employer may elect, within a reasonable period after the adoption of the amendment or change, to have their nonforfeitable percentage computed under the Plan without regard to such amendment or change. The period during which the election may be made shall commence with the date the amendment is adopted or deemed to be made and shall end on the latest of: 
		

		
			(i)      60 days after the amendment is adopted; 
		

		
			 
		

		
			(ii)     60 days after the amendment becomes effective; or 
		

		
			(iii)    60 days after the Participant is issued written notice of the amendment by the Employer or Plan Administrator. 
		

		
			 
		

		

		

		 

		

			29

		

		

			 

		

 

		
		

		
			EXHIBIT A – ADJUSTMENT FACTORS FOR OPTIONAL GRANDFATHERED BENEFITS 
		

		
			Factors for ages not illustrated on the following tables will be computed on an actuarial basis consistent with that used to compute the factors shown. 
		

		
			 
		

		
			JOINT AND SURVIVOR OPTION PERCENTAGES 
		

		
			(Applicable only if the Participant’s age, nearest birthday, on the date monthly income commences is 65). 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Age Nearest Birthday

					
						of Joint Annuitant

					
						on the Date Monthly Income

					
						Commences to  the Participant

					
					
						  

					
					
						Percentage of the Adjusted Grandfathered Retirement

					
						Annuity Payments which are to be

					
						Continued to the Surviving

					
						Joint Annuitant

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						  

					
					
						100%

					
					
						 

					
					
						 

					
					
						66 2/3%

					
					
						 

					
					
						 

					
					
						50%

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						50.........................................................................................

					
					
						  

					
					
						 

					
					
						80.3

					
					
						% 

					
					
						 

					
					
						 

					
					
						87.1

					
					
						% 

					
					
						 

					
					
						 

					
					
						90.9

					
					
						% 

				
	
					
						51.........................................................................................

					
					
						  

					
					
						 

					
					
						80.7

					
					
						  

					
					
						 

					
					
						 

					
					
						87.5

					
					
						  

					
					
						 

					
					
						 

					
					
						91.3

					
					
						  

				
	
					
						52.........................................................................................

					
					
						  

					
					
						 

					
					
						81.1

					
					
						  

					
					
						 

					
					
						 

					
					
						87.9

					
					
						  

					
					
						 

					
					
						 

					
					
						91.8

					
					
						  

				
	
					
						53.........................................................................................

					
					
						  

					
					
						 

					
					
						81.5

					
					
						  

					
					
						 

					
					
						 

					
					
						88.4

					
					
						  

					
					
						 

					
					
						 

					
					
						92.2

					
					
						  

				
	
					
						54.........................................................................................

					
					
						  

					
					
						 

					
					
						82.0

					
					
						  

					
					
						 

					
					
						 

					
					
						88.8

					
					
						  

					
					
						 

					
					
						 

					
					
						92.7

					
					
						  

				
	
					
						55.........................................................................................

					
					
						  

					
					
						 

					
					
						82.4

					
					
						  

					
					
						 

					
					
						 

					
					
						89.3

					
					
						  

					
					
						 

					
					
						 

					
					
						93.2

					
					
						  

				
	
					
						56.........................................................................................

					
					
						  

					
					
						 

					
					
						82.9

					
					
						  

					
					
						 

					
					
						 

					
					
						89.8

					
					
						  

					
					
						 

					
					
						 

					
					
						93.8

					
					
						  

				
	
					
						57.........................................................................................

					
					
						  

					
					
						 

					
					
						83.3

					
					
						  

					
					
						 

					
					
						 

					
					
						90.3

					
					
						  

					
					
						 

					
					
						 

					
					
						94.3

					
					
						  

				
	
					
						58.........................................................................................

					
					
						  

					
					
						 

					
					
						83.8

					
					
						  

					
					
						 

					
					
						 

					
					
						90.9

					
					
						  

					
					
						 

					
					
						 

					
					
						94.9

					
					
						  

				
	
					
						59.........................................................................................

					
					
						  

					
					
						 

					
					
						84.3

					
					
						  

					
					
						 

					
					
						 

					
					
						91.4

					
					
						  

					
					
						 

					
					
						 

					
					
						95.5

					
					
						  

				
	
					
						60.........................................................................................

					
					
						  

					
					
						 

					
					
						84.8

					
					
						  

					
					
						 

					
					
						 

					
					
						92.0

					
					
						  

					
					
						 

					
					
						 

					
					
						96.1

					
					
						  

				
	
					
						61.........................................................................................

					
					
						  

					
					
						 

					
					
						85.3

					
					
						  

					
					
						 

					
					
						 

					
					
						92.7

					
					
						  

					
					
						 

					
					
						 

					
					
						96.8

					
					
						  

				
	
					
						62.........................................................................................

					
					
						  

					
					
						 

					
					
						85.9

					
					
						  

					
					
						 

					
					
						 

					
					
						93.3

					
					
						  

					
					
						 

					
					
						 

					
					
						97.5

					
					
						  

				
	
					
						63.........................................................................................

					
					
						  

					
					
						 

					
					
						86.4

					
					
						  

					
					
						 

					
					
						 

					
					
						94.0

					
					
						  

					
					
						 

					
					
						 

					
					
						98.3

					
					
						  

				
	
					
						64.........................................................................................

					
					
						  

					
					
						 

					
					
						86.9

					
					
						  

					
					
						 

					
					
						 

					
					
						94.7

					
					
						  

					
					
						 

					
					
						 

					
					
						99.1

					
					
						  

				
	
					
						65.........................................................................................

					
					
						  

					
					
						 

					
					
						87.5

					
					
						  

					
					
						 

					
					
						 

					
					
						95.4

					
					
						  

					
					
						 

					
					
						 

					
					
						100.0

					
					
						  

				
	
					
						66.........................................................................................

					
					
						  

					
					
						 

					
					
						88.0

					
					
						  

					
					
						 

					
					
						 

					
					
						96.2

					
					
						  

					
					
						 

					
					
						 

					
					
						100.0

					
					
						  

				
	
					
						67.........................................................................................

					
					
						  

					
					
						 

					
					
						88.6

					
					
						  

					
					
						 

					
					
						 

					
					
						97.0

					
					
						  

					
					
						 

					
					
						 

					
					
						101.9

					
					
						  

				
	
					
						68.........................................................................................

					
					
						  

					
					
						 

					
					
						89.1

					
					
						  

					
					
						 

					
					
						 

					
					
						97.9

					
					
						  

					
					
						 

					
					
						 

					
					
						102.9

					
					
						  

				
	
					
						69.........................................................................................

					
					
						  

					
					
						 

					
					
						89.6

					
					
						  

					
					
						 

					
					
						 

					
					
						98.7

					
					
						  

					
					
						 

					
					
						 

					
					
						104.0

					
					
						  

				
	
					
						70.........................................................................................

					
					
						  

					
					
						 

					
					
						90.2

					
					
						  

					
					
						 

					
					
						 

					
					
						99.6

					
					
						  

					
					
						 

					
					
						 

					
					
						105.1

					
					
						  

				
	
					
						 

					
					
						  

					
					
						 

					
						 
 

					
					
						1983 Group Annuity Table with Projection H, with

					
						mortality rates based on calendar year of birth of 1930
and interest at the rate of 7% per annum.

					
					
						  

					
						  
  

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						  

					
					
						 

					
					
						Life Ann/Opt.

					
					
						  

				

		
			 
		

		
			 
		

		

		

		 

		

			30

		

		

			 

		

 

		
		

		
			CONTINGENT ANNUITANT OPTION PERCENTAGES 
		

		
			(Applicable only if the Participant’s age, nearest birthday, on the date monthly income commences is 65). 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Age Nearest Birthday

					
						of Contingent Annuitant

					
						on the Date Monthly Income

					
						Commences to  the Participant

					
					
						  

					
					
						Percentage of the Adjusted Grandfathered Retirement

					
						Annuity Payments which are to be

					
						Continued to the Surviving

					
						Contingent Annuitant

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						  

					
					
						100%

					
					
						 

					
					
						 

					
					
						66 2/3%

					
					
						 

					
					
						 

					
					
						50%

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						50.......................................................................................

					
					
						  

					
					
						 

					
					
						80.3

					
					
						% 

					
					
						 

					
					
						 

					
					
						85.9

					
					
						% 

					
					
						 

					
					
						 

					
					
						89.0

					
					
						% 

				
	
					
						51.......................................................................................

					
					
						  

					
					
						 

					
					
						80.7

					
					
						  

					
					
						 

					
					
						 

					
					
						86.2

					
					
						  

					
					
						 

					
					
						 

					
					
						89.3

					
					
						  

				
	
					
						52.......................................................................................

					
					
						  

					
					
						 

					
					
						81.1

					
					
						  

					
					
						 

					
					
						 

					
					
						86.5

					
					
						  

					
					
						 

					
					
						 

					
					
						89.6

					
					
						  

				
	
					
						53.......................................................................................

					
					
						  

					
					
						 

					
					
						81.5

					
					
						  

					
					
						 

					
					
						 

					
					
						86.9

					
					
						  

					
					
						 

					
					
						 

					
					
						89.8

					
					
						  

				
	
					
						54.......................................................................................

					
					
						  

					
					
						 

					
					
						82.0

					
					
						  

					
					
						 

					
					
						 

					
					
						87.2

					
					
						  

					
					
						 

					
					
						 

					
					
						90.1

					
					
						  

				
	
					
						55.......................................................................................

					
					
						  

					
					
						 

					
					
						82.4

					
					
						  

					
					
						 

					
					
						 

					
					
						87.5

					
					
						  

					
					
						 

					
					
						 

					
					
						90.4

					
					
						  

				
	
					
						56.......................................................................................

					
					
						  

					
					
						 

					
					
						82.9

					
					
						  

					
					
						 

					
					
						 

					
					
						87.9

					
					
						  

					
					
						 

					
					
						 

					
					
						90.6

					
					
						  

				
	
					
						57.......................................................................................

					
					
						  

					
					
						 

					
					
						83.3

					
					
						  

					
					
						 

					
					
						 

					
					
						88.2

					
					
						  

					
					
						 

					
					
						 

					
					
						90.9

					
					
						  

				
	
					
						58.......................................................................................

					
					
						  

					
					
						 

					
					
						83.8

					
					
						  

					
					
						 

					
					
						 

					
					
						88.6

					
					
						  

					
					
						 

					
					
						 

					
					
						91.2

					
					
						  

				
	
					
						59.......................................................................................

					
					
						  

					
					
						 

					
					
						84.3

					
					
						  

					
					
						 

					
					
						 

					
					
						89.0

					
					
						  

					
					
						 

					
					
						 

					
					
						91.5

					
					
						  

				
	
					
						60.......................................................................................

					
					
						  

					
					
						 

					
					
						84.8

					
					
						  

					
					
						 

					
					
						 

					
					
						89.3

					
					
						  

					
					
						 

					
					
						 

					
					
						91.8

					
					
						  

				
	
					
						61.......................................................................................

					
					
						  

					
					
						 

					
					
						85.3

					
					
						  

					
					
						 

					
					
						 

					
					
						89.7

					
					
						  

					
					
						 

					
					
						 

					
					
						92.1

					
					
						  

				
	
					
						62.......................................................................................

					
					
						  

					
					
						 

					
					
						85.9

					
					
						  

					
					
						 

					
					
						 

					
					
						90.1

					
					
						  

					
					
						 

					
					
						 

					
					
						92.4

					
					
						  

				
	
					
						63.......................................................................................

					
					
						  

					
					
						 

					
					
						86.4

					
					
						  

					
					
						 

					
					
						 

					
					
						90.5

					
					
						  

					
					
						 

					
					
						 

					
					
						92.7

					
					
						  

				
	
					
						64.......................................................................................

					
					
						  

					
					
						 

					
					
						86.9

					
					
						  

					
					
						 

					
					
						 

					
					
						90.9

					
					
						  

					
					
						 

					
					
						 

					
					
						93.0

					
					
						  

				
	
					
						65.......................................................................................

					
					
						  

					
					
						 

					
					
						87.5

					
					
						  

					
					
						 

					
					
						 

					
					
						91.3

					
					
						  

					
					
						 

					
					
						 

					
					
						93.3

					
					
						  

				
	
					
						66.......................................................................................

					
					
						  

					
					
						 

					
					
						88.0

					
					
						  

					
					
						 

					
					
						 

					
					
						91.7

					
					
						  

					
					
						 

					
					
						 

					
					
						93.6

					
					
						  

				
	
					
						67.......................................................................................

					
					
						  

					
					
						 

					
					
						88.6

					
					
						  

					
					
						 

					
					
						 

					
					
						92.1

					
					
						  

					
					
						 

					
					
						 

					
					
						93.9

					
					
						  

				
	
					
						68.......................................................................................

					
					
						  

					
					
						 

					
					
						89.1

					
					
						  

					
					
						 

					
					
						 

					
					
						92.5

					
					
						  

					
					
						 

					
					
						 

					
					
						94.2

					
					
						  

				
	
					
						69.......................................................................................

					
					
						  

					
					
						 

					
					
						89.6

					
					
						  

					
					
						 

					
					
						 

					
					
						92.9

					
					
						  

					
					
						 

					
					
						 

					
					
						94.5

					
					
						  

				
	
					
						70.......................................................................................

					
					
						  

					
					
						 

					
					
						90.2

					
					
						  

					
					
						 

					
					
						 

					
					
						93.2

					
					
						  

					
					
						 

					
					
						 

					
					
						94.8

					
					
						  

				
	
					
						 

					
					
						  

					
					
						 
 
 

					
					
						1983 Group Annuity Table with Projection H, with
mortality rates based on calendar year of  birth of 1930
and interest at the rate of 7% per annum.

					
					
						  
  
  

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						  

					
					
						 

					
					
						Life Ann/Opt.

					
					
						  

				

		
			 
		

		

		

		 

		

			31

		

		

			 

		

 

		
		

		
			ANNUITY OPTION ADJUSTMENT PERCENTAGES 
		

		
			Percentages to be applied to the monthly benefit which would be payable to the Participant on his or her Retirement Date if no Optional Form of Annuity were in effect to determine the monthly income benefit commencing on the Participant’s Retirement Date if one of the following options is in effect. 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Age Nearest Birthday

					
						on the Date Monthly

					
						Income Commences

					
						Benefit

					
					
						  

					
					
						 

					
					
						  

					
					
						Annuity Option for Grandfathered

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						  

					
					
						 

					
					
						  

					
					
						5C&C

					
					
						 

					
					
						 

					
					
						10C&C

					
					
						 

					
					
						 

					
					
						15C&C

					
					
						 

					
					
						 

					
					
						20C&C

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						50...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.8

					
					
						% 

					
					
						 

					
					
						 

					
					
						99.2

					
					
						% 

					
					
						 

					
					
						 

					
					
						98.3

					
					
						% 

					
					
						 

					
					
						 

					
					
						97.2

					
					
						% 

				
	
					
						51...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.8

					
					
						  

					
					
						 

					
					
						 

					
					
						99.1

					
					
						  

					
					
						 

					
					
						 

					
					
						98.1

					
					
						  

					
					
						 

					
					
						 

					
					
						96.9

					
					
						  

				
	
					
						52...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.7

					
					
						  

					
					
						 

					
					
						 

					
					
						99.0

					
					
						  

					
					
						 

					
					
						 

					
					
						97.9

					
					
						  

					
					
						 

					
					
						 

					
					
						96.6

					
					
						  

				
	
					
						53...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.7

					
					
						  

					
					
						 

					
					
						 

					
					
						98.9

					
					
						  

					
					
						 

					
					
						 

					
					
						97.7

					
					
						  

					
					
						 

					
					
						 

					
					
						96.3

					
					
						  

				
	
					
						54...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.7

					
					
						  

					
					
						 

					
					
						 

					
					
						98.8

					
					
						  

					
					
						 

					
					
						 

					
					
						97.5

					
					
						  

					
					
						 

					
					
						 

					
					
						96.0

					
					
						  

				
	
					
						55...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.6

					
					
						  

					
					
						 

					
					
						 

					
					
						98.6

					
					
						  

					
					
						 

					
					
						 

					
					
						97.3

					
					
						  

					
					
						 

					
					
						 

					
					
						95.6

					
					
						  

				
	
					
						56...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.6

					
					
						  

					
					
						 

					
					
						 

					
					
						98.5

					
					
						  

					
					
						 

					
					
						 

					
					
						97.0

					
					
						  

					
					
						 

					
					
						 

					
					
						95.2

					
					
						  

				
	
					
						57...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.6

					
					
						  

					
					
						 

					
					
						 

					
					
						98.4

					
					
						  

					
					
						 

					
					
						 

					
					
						96.8

					
					
						  

					
					
						 

					
					
						 

					
					
						94.8

					
					
						  

				
	
					
						58...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.5

					
					
						  

					
					
						 

					
					
						 

					
					
						98.3

					
					
						  

					
					
						 

					
					
						 

					
					
						96.5

					
					
						  

					
					
						 

					
					
						 

					
					
						94.3

					
					
						  

				
	
					
						59...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.5

					
					
						  

					
					
						 

					
					
						 

					
					
						98.1

					
					
						  

					
					
						 

					
					
						 

					
					
						96.2

					
					
						  

					
					
						 

					
					
						 

					
					
						93.8

					
					
						  

				
	
					
						60...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.4

					
					
						  

					
					
						 

					
					
						 

					
					
						98.0

					
					
						  

					
					
						 

					
					
						 

					
					
						95.9

					
					
						  

					
					
						 

					
					
						 

					
					
						93.3

					
					
						  

				
	
					
						61...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.4

					
					
						  

					
					
						 

					
					
						 

					
					
						97.8

					
					
						  

					
					
						 

					
					
						 

					
					
						95.5

					
					
						  

					
					
						 

					
					
						 

					
					
						92.7

					
					
						  

				
	
					
						62...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.3

					
					
						  

					
					
						 

					
					
						 

					
					
						97.6

					
					
						  

					
					
						 

					
					
						 

					
					
						95.0

					
					
						  

					
					
						 

					
					
						 

					
					
						92.0

					
					
						  

				
	
					
						63...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.3

					
					
						  

					
					
						 

					
					
						 

					
					
						97.3

					
					
						  

					
					
						 

					
					
						 

					
					
						94.5

					
					
						  

					
					
						 

					
					
						 

					
					
						91.2

					
					
						  

				
	
					
						64...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.2

					
					
						  

					
					
						 

					
					
						 

					
					
						97.1

					
					
						  

					
					
						 

					
					
						 

					
					
						94.0

					
					
						  

					
					
						 

					
					
						 

					
					
						90.4

					
					
						  

				
	
					
						65...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.1

					
					
						  

					
					
						 

					
					
						 

					
					
						96.7

					
					
						  

					
					
						 

					
					
						 

					
					
						93.3

					
					
						  

					
					
						 

					
					
						 

					
					
						89.5

					
					
						  

				
	
					
						66...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						99.0

					
					
						  

					
					
						 

					
					
						 

					
					
						96.4

					
					
						  

					
					
						 

					
					
						 

					
					
						92.6

					
					
						  

					
					
						 

					
					
						 

					
					
						88.5

					
					
						  

				
	
					
						67...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						98.9

					
					
						  

					
					
						 

					
					
						 

					
					
						95.9

					
					
						  

					
					
						 

					
					
						 

					
					
						91.8

					
					
						  

					
					
						 

					
					
						 

					
					
						87.4

					
					
						  

				
	
					
						68...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						98.8

					
					
						  

					
					
						 

					
					
						 

					
					
						95.4

					
					
						  

					
					
						 

					
					
						 

					
					
						91.0

					
					
						  

					
					
						 

					
					
						 

					
					
						86.2

					
					
						  

				
	
					
						69...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						98.6

					
					
						  

					
					
						 

					
					
						 

					
					
						94.9

					
					
						  

					
					
						 

					
					
						 

					
					
						90.0

					
					
						  

					
					
						 

					
					
						 

					
					
						84.9

					
					
						  

				
	
					
						70...............................................................................................................

					
					
						  

					
					
						 

					
					
						  

					
					
						 

					
					
						98.4

					
					
						  

					
					
						 

					
					
						 

					
					
						94.3

					
					
						  

					
					
						 

					
					
						 

					
					
						89.0

					
					
						  

					
					
						 

					
					
						 

					
					
						83.5

					
					
						  

				
	
					
						 

					
					
						  

					
					
						1983 Group Annuity Table with Projection H, with mortality rates based on calendar year of birth of 1930 and interest at the rate of 7% per annum.

					
					
						              

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						  

					
					
						Life Ann/Opt.

					
					
						  

				

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			32

		

		

			 

		

 

		
		

		
			 
		

		
			THE HANOVER INSURANCE GROUP CASH BALANCE
		

		
			PENSION PLAN
		

		
			PART II
		

		
			(As amended and restated generally effective January 1, 2010)
		

		
			 
		

		

		

		 

		

			 

		

		

			 

		

 

		THE HANOVER INSURANCE GROUP CASH BALANCE
		

		
			PENSION PLAN
		

		
			PART II
		

		
			TABLE OF CONTENTS
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						    

					
					
						 

					
					
						  

					
					
						PAGE

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						ARTICLE I            NAME, PURPOSE AND EFFECTIVE DATE OF PLAN

					
					
						  

					
					
						 

					
					
						1

					
					
						  

				
	
					
						1.01

					
					
						    

					
					
						General Statement.

					
					
						  

					
					
						 

					
					
						1

					
					
						  

				
	
					
						1.02

					
					
						    

					
					
						Name of Plan.

					
					
						  

					
					
						 

					
					
						1

					
					
						  

				
	
					
						1.03

					
					
						    

					
					
						Purpose.

					
					
						  

					
					
						 

					
					
						1

					
					
						  

				
	
					
						1.04

					
					
						    

					
					
						Restated Plan Effective Date.

					
					
						  

					
					
						 

					
					
						1

					
					
						  

				
	
					
						ARTICLE II          DEFINITIONS

					
					
						  

					
					
						 

					
					
						1

					
					
						  

				
	
					
						ARTICLE III        PARTICIPATION REQUIREMENTS

					
					
						  

					
					
						 

					
					
						8

					
					
						  

				
	
					
						3.01

					
					
						    

					
					
						Participation Requirements.

					
					
						  

					
					
						 

					
					
						8

					
					
						  

				
	
					
						3.02

					
					
						    

					
					
						Classification Changes.

					
					
						  

					
					
						 

					
					
						8

					
					
						  

				
	
					
						3.03

					
					
						    

					
					
						Participant Cooperation.

					
					
						  

					
					
						 

					
					
						8

					
					
						  

				
	
					
						ARTICLE IV        EMPLOYER CONTRIBUTIONS

					
					
						  

					
					
						 

					
					
						8

					
					
						  

				
	
					
						4.01

					
					
						    

					
					
						Employer Contributions.

					
					
						  

					
					
						 

					
					
						8

					
					
						  

				
	
					
						4.02

					
					
						    

					
					
						Plan Contributions to Trustees.

					
					
						  

					
					
						 

					
					
						8

					
					
						  

				
	
					
						4.03

					
					
						    

					
					
						Receipt of Contributions by Trustee.

					
					
						  

					
					
						 

					
					
						8

					
					
						  

				
	
					
						ARTICLE V         RETIREMENT AND DISABILITY BENEFITS

					
					
						  

					
					
						 

					
					
						9

					
					
						  

				
	
					
						5.01

					
					
						    

					
					
						Normal Retirement Benefit.

					
					
						  

					
					
						 

					
					
						9

					
					
						  

				
	
					
						5.02

					
					
						    

					
					
						Early Retirement Benefit.

					
					
						  

					
					
						 

					
					
						9

					
					
						  

				
	
					
						5.03

					
					
						    

					
					
						Late Retirement Benefit.

					
					
						  

					
					
						 

					
					
						10

					
					
						  

				
	
					
						5.04

					
					
						    

					
					
						Disability Benefit.

					
					
						  

					
					
						 

					
					
						10

					
					
						  

				
	
					
						5.05

					
					
						    

					
					
						Distribution of Benefits.

					
					
						  

					
					
						 

					
					
						10

					
					
						  

				
	
					
						5.06

					
					
						    

					
					
						Qualified Joint and Survivor Annuity for Married Participants.

					
					
						  

					
					
						 

					
					
						12

					
					
						  

				
	
					
						5.07

					
					
						    

					
					
						Supplementary Pension Benefits.

					
					
						  

					
					
						 

					
					
						13

					
					
						  

				
	
					
						5.08

					
					
						    

					
					
						Rollovers to Other Qualified Plans.

					
					
						  

					
					
						 

					
					
						14

					
					
						  

				
	
					
						ARTICLE VI        DEATH BENEFITS

					
					
						  

					
					
						 

					
					
						15

					
					
						  

				
	
					
						6.01

					
					
						    

					
					
						Pre-Retirement Spouse Benefit for Married Participants.

					
					
						  

					
					
						 

					
					
						15

					
					
						  

				
	
					
						6.02

					
					
						    

					
					
						Minimum Death Benefit.

					
					
						  

					
					
						 

					
					
						16

					
					
						  

				

		
			 
		

		 

		

			 

		

		

			 

		

 

			
					
						ARTICLE VII      BENEFITS UPON TERMINATION FROM SERVICE

					
					
						  

					
					
						 

					
					
						16

					
					
						  

				
	
					
						7.01

					
					
						    

					
					
						In General.

					
					
						  

					
					
						 

					
					
						16

					
					
						  

				
	
					
						7.02

					
					
						    

					
					
						Options on Termination of Participation.

					
					
						  

					
					
						 

					
					
						16

					
					
						  

				
	
					
						7.03

					
					
						    

					
					
						Forfeitures.

					
					
						  

					
					
						 

					
					
						17

					
					
						  

				
	
					
						7.04

					
					
						    

					
					
						Resumption of Service.

					
					
						  

					
					
						 

					
					
						18

					
					
						  

				
	
					
						7.05

					
					
						    

					
					
						Distribution of Benefits.

					
					
						  

					
					
						 

					
					
						18

					
					
						  

				
	
					
						7.06

					
					
						    

					
					
						Cash Out Repayment Option.

					
					
						  

					
					
						 

					
					
						18

					
					
						  

				
	
					
						7.07

					
					
						    

					
					
						Early Retirement Election.

					
					
						  

					
					
						 

					
					
						18

					
					
						  

				
	
					
						7.08

					
					
						    

					
					
						Amendment to Vesting Schedule.

					
					
						  

					
					
						 

					
					
						18

					
					
						  

				

		
			 
		

		
			 
		

		

		

		 

		

			 

		

		

			 

		

 

		
		

		
			 
		

		
			 
		

		
			ARTICLE I
		

		
			NAME, PURPOSE AND EFFECTIVE DATE OF PLAN
		

		
			1.01    General Statement. The Hanover Insurance Group Cash Balance Pension Plan (the “Plan”) consists of three parts, Part I, Part II and Part III. Part I of the Plan provides a cash balance and pension benefit, which was formerly provided under a plan known as “The Allmerica Financial Cash Balance Pension Plan”. Part II of the Plan provides a pension benefit, which was formerly provided under a plan known as “The Allmerica Financial Agents’ Pension Plan”. Part III of the Plan contains provisions applicable to each of Part I and Part II. 
		

		
			The provisions of Part III of the Plan shall override any provision of Part II of the Plan as provided in Part III of the Plan. 
		

		
			The benefits payable to eligible Participants under Part II of the Plan are governed by the terms and conditions of Part II of the Plan and Part III of the Plan. Terms used in this Part II of the Plan are defined in Part I of the Plan, except as otherwise specifically provided in this Part II of the Plan. 
		

		
			1.02    Name of Plan. The prior version of this Part II of the Plan, known as The Allmerica Financial Agents’ Pension Plan, was generally effective January 1, 1999 (except for those provisions of the Plan which had an alternative effective date). The effective date of the prior version of this Part II of the Plan (the “Prior Agents’ Plan”) was January 1, 1971. Effective January 1, 1992, the Prior Agents’ Plan was merged with and became a part of The Allmerica Financial Cash Balance Pension Plan, formerly known as The State Mutual Companies’ Pension Plan. Thus, the Prior Agents’ Pension Plan became Part II of The Hanover Insurance Group Cash Balance Pension Plan. On December 31, 2007, First Allmerica did not employ any person who was eligible to participate or was actively participating in The Allmerica Financial Agents’ Pension Plan. Effective January 1, 2008, First Allmerica transferred sponsorship of, and the liabilities and obligations associated with, The Hanover Insurance Group Cash Balance Plan (including The Allmerica Financial Agents’ Pension Plan) to Hanover, and Hanover agreed to assume sponsorship of, and the liabilities and obligations associated with, The Hanover Insurance Group Cash Balance Pension Plan as of such date. 
		

		
			1.03    Purpose. This Part II of the Plan has been established for the exclusive benefit of Participants and their Beneficiaries and as far as possible shall be interpreted and administered in a manner consistent with this intent and consistent with the requirements of Section 401 of the Internal Revenue Code. 
		

		
			Subject to Article IV of Part III of the Plan (Limitations on Benefits) and to Section 10.04 of Part III of the Plan, which relates to the return of Employer contributions under special circumstances, until such time as the Plan has been terminated and all Plan liabilities have been satisfied, under no circumstances shall any assets of the Plan, or any contributions made under the Plan, be used for, or diverted to, purposes other than for the exclusive benefit of the Participants and their Beneficiaries and to defray reasonable expenses incurred in the administration of the Plan. 
		

		
			 
		

		
			1.04    Restated Plan Effective Date. The effective date of this amended and restated Part II of the Plan is January 1, 2010 (except for those provisions of this Part of the Plan which have an expressly stated alternative effective date). Except to the extent otherwise specifically provided in this Part II of the Plan, (i) the terms and conditions of this amended and restated Part II of the Plan shall apply only to those eligible Employees actively employed by the Employer (or to those eligible Career Agents with a Career Agent Contract in force) on or after January 1, 2010. The rights and benefits of any Participant whose employment with the Employer terminated (or whose Career Agent Contract terminated) prior to January 1, 2010 shall be determined in accordance with the provisions of this Part II of the Plan as were in effect during the appropriate time or times prior to January 1, 2010; provided, however, that if the Accrued Benefit of any such Participant has not been completely distributed before January 1, 2010, then such Accrued Benefit shall be accounted for and distributed in accordance with the provisions of this version of Part II of the Plan, but only to the extent that any such provision is not inconsistent with Part III of the Plan and subject to the requirements of applicable law and as otherwise specifically provided herein. 
		

		
			 
		

		
			ARTICLE II
		

		
			DEFINITIONS
		

		
			All section and article references in this Part II are to section and article references in this Part II, except as otherwise expressly provided. 
		

		
			Except to the extent a word or phrase is specifically defined in this Part II of the Plan, the words and phrases used in this Part II of the Plan shall have the meanings set forth in Part I of the Plan, unless a different meaning is clearly required by the context or is otherwise provided in Part III of the Plan. 
		

		

		

		 

		

			1

		

		

			 

		

 

		2.01   “Accrued Benefit”: 
		

		
			(a)means, except as provided in (c) or (d) below, the sum of a Participant’s frozen Grandfathered Benefit (accrued during Years of Credited Service completed prior to January 1, 1999) and the defined benefit credited to eligible Participants in accordance with Section 5.01 attributable to Years of Credited Service completed by the Participant after December 31, 1998. 
		

		
			(b)No Employee contributions shall be required or permitted for Plan Years beginning after December 31, 1988. The portion of a Participant’s Accrued Benefit derived from required Employee contributions made on or after January 1, 1971 and prior to January 1, 1989 will be determined in accordance with the rules set forth below: 
		

		
			(i) STEP ONE - Determine the total amount of such contributions made by a Participant as a condition of participation in Part II of the Plan; 
		

		
			 
		

		
			(ii) STEP TWO - Add to the amount in Step One interest required by the terms of Part II of the Plan to be credited to such contributions up to the Plan’s ERISA compliance date; 
		

		
			(iii) STEP THREE - Add to the sum of the amounts determined in Steps One and Two interest compounded annually at the rate of 5% from the Plan’s ERISA compliance date or the date the Participant began participation in Part II of the Plan, whichever is later, to the end of the last Plan Year beginning before January 1, 1988 or the Participant’s Normal Retirement Date, whichever is earlier. 
		

		
			(iv) STEP FOUR - Add to the sum of the amounts determined in Steps One, Two and Three interest compounded annually - 
		

		
			(A)     at the rate of 120 percent of the Federal mid-term rate (as in effect under Section 1274 of the Code for the first month of the Plan Year) from the beginning of the first Plan Year beginning after December 31, 1987, and ending with the date on which the determination is being made, and 
		

		
			(B)     at the interest rate which would be used under Part II of the Plan under Section 417(e)(3) of the Code (as of the determination date) for the period beginning with the determination date and ending on the date on which the Employee attains his Normal Retirement Date. 
		

		
			Notwithstanding the foregoing, for Plan Years beginning after December 31, 1998, the interest rate credited in Step (iv)(A) shall not be less than 5%. 
		

		
			(v) STEP FIVE - The amount in Step 4 will be converted into the normal form of benefit using the interest rate that would be used under Part II of the Plan under Code Section 417(e)(3). 
		

		
			The portion of a Participant’s Accrued Benefit derived from Employee contributions made prior to January 1, 1971 shall be equal to the total amount of such contributions made by a Participant, plus interest credited thereon. For Plan Years beginning prior to January 1, 1999, interest on such contributions shall be credited at the rate or rates in effect for each Plan Year under the terms of Part II of the Plan as in effect on December 31, 1998. For Plan Years beginning after December 31, 1998, interest on such contributions shall be credited as provided in STEPS FOUR and FIVE above. 
		

		
			 
		

		
			The portion of the Accrued Benefit described in Subsection (a) derived from Employer contributions as of any date is equal to such total Accrued Benefit less the portion derived from Employee contributions. 
		

		
			At all times the portion of a Participant’s Accrued Benefit attributable to mandatory Employee contributions shall be 100% vested and nonforfeitable. 
		

		
			(c)means, with respect to the minimum benefit for Non-Key Employee Participants in a Top Heavy Plan, the sum of such benefits earned by the Participant, which benefits are payable at the Participant’s Normal Retirement Date and are described in Section 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans).  
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

			
					
						(d)     

					
					
						 

					
					
						      (i)

					
					
						Notwithstanding anything in Subsections (a), (b) or (c) to the contrary, unless a repayment has been made in accordance with the rules set forth in subparagraph (ii) below, in determining the portion of an Employee’s Accrued Benefit derived from Employer Contributions upon a resumption of participation, periods of service with respect to which the Employee received a distribution of the present value of his vested Accrued Benefit shall be disregarded. 

				

		
			 
		

		

		

		 

		

			2

		

		

			 

		

 

		
		

		
			(ii) In the case of an election of Option 2 described in Section 7.02 or in the case of an involuntary cash-out of the present value of an Employee’s Accrued Benefit in accordance with such Section, the Employee’s Accrued Benefit described in Subsections 2.01(a), (b) and (c) (including all optional forms of benefits and subsidies relating to such benefits) shall be restored if the Employee repays the amount distributed plus interest, compounded annually from the date of distribution at the rate of 5 percent. Such repayment must be made by the Employee before the earlier of five years after the first date on which the Employee is subsequently reemployed by the Employer, or the date the Employee incurs five consecutive One Year Breaks in Service following the date of distribution; provided,  however, that there shall be no right of repayment if the Employee was 100% vested on the date of his termination of participation. 
		

		
			Notwithstanding anything in Part II of the Plan to the contrary, for Plan Years beginning before Section 411 of the Code is applicable hereto, the Participant’s Accrued Benefit shall be the greater of that provided by Part II of the Plan, or 1/2 of the benefit which would have accrued had the provisions of this Section 2.01 been in effect. In the event the Accrued Benefit as of the effective date of Code Section 411 is less than that provided hereunder, such difference shall be accrued in accordance with this Section. 
		

		
			 
		

		
			2.02   “Actuarial Equivalent” means a benefit having the same value as the benefit or benefits otherwise payable. Except as otherwise provided in this Section, the present value of any benefit determined under the terms of Part II of the Plan will be the actuarial equivalent of the no-death benefit life annuity retirement benefit specified in Section 5.01. 
		

		
			Actuarial Equivalent life annuity settlements of optional life annuity Top Heavy Plan benefits will be computed utilizing (i) the Code Section 417 Mortality Table and (ii) the Code Section 417 Interest Rate for determining the amount payable to a Participant having an annuity starting date on or after January 1, 2004. 
		

		
			Optional life annuity benefits will be computed on the basis of the 1983 Group Annuity Table with Projection H, with mortality rates based on calendar year of birth of 1930 and interest at the rate of 7% per annum. Adjustment factors used to determine optional forms of life annuity benefits are included in Exhibit A, attached hereto and made a part of Part II of the Plan. Adjustment factors for optional life annuity benefits not illustrated will be computed on an actuarial basis consistent with that used in computing the factors shown in Exhibit A. 
		

		
			The present value of any Plan benefit and the amount of any cash distribution shall be determined on the basis of (i) the mortality rates specified above and an interest rate of 7% per annum or (ii) the Code Section 417 Mortality Table and the Code Section 417 Interest Rate (or for determining the amount payable to a Participant having an annuity starting date on and after January 1, 2008, the Code Section 417 Applicable Interest Rate), whichever produces the greater benefit. 
		

		
			The preceding paragraphs shall not apply to the extent they would cause the Plan to fail to satisfy the requirements of Article IV of Part III of the Plan (Limitations on Benefits) or Section 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans). 
		

		
			For purposes of Part II of the Plan, 
		

		
			(a)the “Code Section 417 Mortality Table” means the applicable mortality table prescribed by the Secretary of the Treasury pursuant to Code Section 417(e)(3), as in effect from time to time, provided,  however, that notwithstanding the preceding provisions of this paragraph, for distributions commencing on or after December 31, 2002 and prior to January 1, 2008, the Code Section 417 Mortality Table means the Table set forth in Revenue Ruling 2001-62 and for purposes of determining the amount payable to a Participant with an annuity starting date on or after January 1, 2008, the Code Section 417 Mortality Table means the Table set forth in Revenue Ruling 2007-67 or such other Table as may be prescribed by the Secretary of the Treasury pursuant to Code Section 417(e)(3); 
		

		
			(b)for periods beginning on and after January 1, 2004, the “Code Section 417 Interest Rate” means, for the Plan Year which contains the annuity starting date for the distribution, the annual rate of interest on a 30-year Treasury securities in effect for the second month immediately preceding the first day of the Plan Year (e.g., November 2009 for the 2010 Plan Year), and 
		

		
			 
		

		
			(c)for periods beginning on and after January 1, 2008, the “Code Section 417 Applicable Interest Rate” means, for the Plan Year which contains the annuity starting date for the distribution, the applicable interest rate described by Code section 417(e) after its amendment by the Pension Protection Act of 2006, which rate more specifically shall be the adjusted first, second, and third segment rates applied under rules similar to the rules of Code Section 430(h)(2)(C) for the lookback month used to determine the previously applicable interest rate on 30-year Treasury securities (e.g., November 2009 for the 2010 Plan Year) or for such other time as the Secretary of the Treasury may by regulations prescribe. 
		

		
			(d)For purposes of determining the Code Section 417 Applicable Interest Rate, the first, second, and third segment rates are the first, second, and third segment rates which would be determined under Code Section 430(h)(2)(C) if: 
		

		
			(i) Code Section 430(h)(2)(D) were applied by substituting the average yields for the month described in clause (ii) below for the average yields for the 24-month period described in such Code section, and 
		

		

		

		 

		

			3

		

		

			 

		

 

		(ii) Code Section 430(h)(2)(G)(i)(II) were applied by substituting “Section 417(e)(3)(A)(ii)(II) for “Section 412(b)(5)(B)(ii)(II)”, and 
		

		
			(iii) The applicable percentage under Code section 430(h)(2)(G) is treated as being 20% in 2008, 40% in 2009, 60% in 2010, and 80% in 2011. 
		

		
			2.03   “Compensation” means: 
		

		
			(a)For purposes of determining a Participant’s Normal Retirement Benefit specified in Section 5.01 of Part II of the Plan, a Participant’s total calendar year compensation paid (or deferred pursuant to an unfunded, non-qualified deferred payment arrangement) on and after the date he becomes a Participant and while he remains in an eligible class of Employees for (i) and (ii) below: 
		

		
			(i) services performed in connection with the sale and service of products of First Allmerica Financial Life Insurance Company. 
		

		
			(ii)  services performed in connection with the sale and service of products of Allmerica Financial Life Insurance and Annuity Company. 
		

		
			Compensation shall also mean and include: 
		

		
			(iii)  commissions paid to the Participant by Allmerica Investments, Inc., and 
		

		
			 
		

		
			(iv) compensation which is not currently includable in the Participant’s gross income by reason of the application of Sections 125, 402(e)(3) or 132(f)(4) of the Code. 
		

		
			Notwithstanding the foregoing, for purposes of Subsection (a) renewal commissions received which are attributable to business sold prior to the date the Employee became a Career Agent or General Agent of the Employer shall be excluded. 
		

		
			(b)For purposes of Section 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans) and or for purposes of Article IV of Part III of the Plan (Limitations on Benefits), the term “Compensation” means a Participant’s earned income, wages, salaries, fees for professional services and other amounts received (without regard to whether or not an amount is paid in cash) for personal services actually rendered in the course of employment with the Employer maintaining the plan to the extent that the amounts are includible in gross income (including, but not limited to, commissions paid salesmen, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and reimbursements or other expense allowances under a nonaccountable plan (as described in Section 1.62-2(c) of the Treasury Regulations), and excluding the following: 
		

		
			(i) Employer contributions to a plan of deferred compensation which are not includible in the Employee’s gross income for the taxable year in which contributed, or Employer contributions under a simplified employee pension plan to the extent such contributions are deductible by the employee, or any distributions from a plan of deferred compensation; 
		

		
			(ii) Amounts realized from the exercise of a non-qualified stock option, or when restricted stock (or property) held by the Employee either becomes freely transferable or is no longer subject to a substantial risk of forfeiture; 
		

		
			(iii) Amounts realized from the sale, exchange or other disposition of stock acquired under a qualified stock option; and 
		

		
			(iv)    Other amounts which received special tax benefits. 
		

		
			For Plan Years commencing after December 31, 1997, Compensation for purposes of Section 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans) and Article IV of Part III of the Plan (Limitations on Benefits) shall also include Employee elective deferrals under Code Section 402(g)(3), amounts contributed or deferred by the Employer at the election of the Employee and not includable in the gross income of the Employee by reason of Code Section 125, and elective amounts that are not includable in the gross income of the Employee by reason of Code Section 132(f)(4). 
		

		
			 
		

		
			(c)Notwithstanding (a) and (b) above, for Plan Years beginning on or after January 1, 1994 and prior to January 1, 2002, the annual Compensation of each Participant taken into account for determining all benefits provided under Part II of the Plan for any determination period shall not exceed $150,000. This limitation shall be adjusted for inflation by the Secretary under Code Section 401(a)(17)(B) in multiples of $10,000 by applying an inflation adjustment factor and rounding the result down to the next multiple of $10,000 (increases of less than $10,000 are disregarded). The cost-of-living adjustment in effect for a calendar year applies to any period, not exceeding 12 months, over which Compensation is determined beginning in such calendar year. If Compensation is being determined over a period of time that contains fewer than 12 calendar months, then the annual Compensation limit is an amount equal to the annual Compensation limit for the calendar year in which the Compensation period begins multiplied by the ratio obtained by dividing the number of full months in the period by 12. 
		

		

		

		 

		

			4

		

		

			 

		

 

		If Compensation for any prior determination period is taken into account in determining a Participant’s benefits for the current Plan Year, the Compensation for such prior determination period is subject to the applicable annual Compensation limit in effect for that prior period. For this purpose, in determining benefits in Plan Years beginning on or after January 1, 1989, the annual compensation limit in effect for determination periods beginning before that date is $200,000. In addition, in determining benefits in Plan Years beginning on or after January 1, 1994, the annual Compensation limit in effect for determination periods beginning before that date is $150,000. 
		

		
			(d)Notwithstanding the foregoing and (a) and (b) above, the annual Compensation of each Participant taken into account in determining benefit accruals in any Plan Year beginning after December 31, 2001, shall not exceed $200,000. Annual compensation means Compensation during the Plan Year or such other consecutive 12-month period over which Compensation is otherwise determined under Part II of the Plan (the “determination period”). For purposes of determining benefit accruals in a Plan Year beginning after December 31, 2001, the annual Compensation for any prior determination period shall be limited to $200,000. 
		

		
			The $200,000 limit on annual Compensation for determination periods beginning after December 31, 2001 shall be adjusted for cost-of-living increases in accordance with Section 401(a)(17)(B) of the Code. The cost-of-living adjustment in effect for a calendar year applies to annual Compensation for the determination period that begins with or within such calendar year. 
		

		
			2.04   “Career Agent Contract” means that form of contract between a life insurance agent and the Employer whereby the agent agrees to sell insurance and annuity policies on a full-time basis. 
		

		
			 
		

		
			2.05   “Credited Interest” means interest utilized in determining the minimum death benefit specified in Section 6.02 of Part II of the Plan. Such interest shall be at the rate determined in accordance with the Group Annuity Contract, but not less than 3% per annum compounded annually from the January 1st next following the date such contributions were made to the first day of the month as of which the Credited Interest is being determined for periods prior to January 1, 1976, plus 5% per annum compounded annually for periods beginning on or after January 1, 1976 and prior to January 1, 1988, plus the greater of (i) 5% per annum compounded annually or (ii) the interest rate which would be credited under Part II of the Plan under Step (iv)(A) of Subsection 2.01(b) for periods beginning on or after January 1, 1988. 
		

		
			2.06   “Credited Service” 
		

		
			(a)Except as provided in Subsection (c) and except for Hours excluded under Subsections 2.12(b), (c), (g) and (h), Credited Service shall mean and include all Hours of Service completed with the Employer on and after the date the Employee becomes a Participant in Part II of the Plan, completed while the Participant remains in an eligible class of Employees. 
		

		
			(b)A Participant shall receive a year of Credited Service for each Plan Year in which he is credited with 1,000 or more Hours of Service with the Employer. 
		

		
			Additionally, for Plan Years beginning after 1998, a Participant shall receive a Year of Credited Service for the Plan Year he retires or dies and a Former Participant shall receive a Year of Credited Service for the Year he again becomes a Participant upon a rehire, in each case regardless of the number of Hours of Service completed in such Year. In no event will a Participant receive more than one Year of Credited Service for any one Plan Year. 
		

		
			(c)Notwithstanding anything in this Section to the contrary, Credited Service shall not include periods of service with respect to which any Employee has received a distribution described in Section 2.01(d) unless a repayment has been made pursuant to the rules set forth in paragraph (ii) of such Section. 
		

		
			(d)For purposes only of determining a Participant’s eligibility for the Disability Benefit specified in Section 5.03 of Part II of the Plan, the following periods of service shall be counted: 
		

		
			(i) periods of prior service with an Affiliate during which he was a participant in a qualified pension or profit sharing plan sponsored by the Affiliate; 
		

		
			(ii) periods of prior service with the Employer in a position in which he was not eligible to participate in this Plan during which he was a participant in another qualified pension or profit sharing plan sponsored by the Employer; and 
		

		
			 
		

		
			(iii) the number of full years and completed months during which a General Agent or former General Agent made contributions under Part II of his General Agent’s Contract. 
		

		
			2.07   “Employee” means any General Agent or life insurance agent who is a common-law employee of the Company or any life insurance agent who holds a Career Agent’s Contract with the Employer. 
		

		
			2.08   “Employee Contributions” means contributions made by a Participant prior to January 1, 1989 as a condition of participation in Part II of the Plan. 
		

		

		

		 

		

			5

		

		

			 

		

 

		2.09   “Employer” means First Allmerica; provided that on and after January 1, 2008 the term “Employer” shall also mean the Plan Sponsor. 
		

		
			2.10   “General Agent” means an agent of the Company whose relationship is determined by a General Agent’s Agreement wherein the General Agent is required to devote his full-time business activities in the hiring, supervision and management of life insurance agents who sell, administer and service the policies and contracts of the Employer. 
		

		
			2.11   “Grandfathered Benefit” means the frozen monthly retirement benefit payable as a single life annuity to a Participant on his Normal Retirement Date, calculated in accordance with the benefit formulas set forth in Sections 5.01 and, if applicable, 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans) as in effect on December 31, 1998. Such benefit shall be calculated based on the Participant’s Average Compensation, Final Average Compensation, Credited Service, and the amount of benefit offset as determined by applying Section 5.06, each determined as of December 31, 1998, based on the provisions of Part II of the Plan in effect on such date. 
		

		
			2.12   “Hour of Service” means: 
		

		
			(a)Each hour for which an Employee is paid, or entitled to payment, for the performance of duties for the Employer. For purposes of Part II of the Plan a Career Agent shall be credited with 45 Hours of Service for each complete or partial week his Career Agent’s Contract remains in force and a General Agent or life insurance agent who is a common-law employee shall be credited with 45 Hours of Service for each complete or partial week he performs duties for the Employer. 
		

		
			(b)Each hour for which the Employee is paid, or entitled to payment, by the Employer on account of a period of time during which no duties are performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence. Notwithstanding the preceding sentence: 
		

		
			(i) Except in the case of a Participant who is eligible for the Disability Benefit specified in Section 5.04, no more than 1,000 Hours shall be credited to an Employee under this Subsection (b) on account of any single continuous period during which the Employee performs no duties (whether or not such period occurs in a single computation period); 
		

		
			 
		

		
			(ii)  No hours shall be credited under this Subsection (b) for any payments made or due under a plan maintained solely for the purpose of complying with any applicable workers’ compensation, unemployment compensation or disability insurance laws; and 
		

		
			(iii)  No hours shall be credited under this Subsection (b) for a payment which solely reimburses an Employee for medical or medically related expenses incurred by the Employee. 
		

		
			For purposes of this Subsection (b) a payment shall be deemed to be made by or due from the Employer regardless of whether such payment is made by or due from the Employer directly, or indirectly through, among others, a trust fund or insurer, to which the Employer contributes or pays premiums. 
		

		
			(c)Each hour for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by the Employer. The same Hours of Service shall not be both credited under Subsections (a) or (b), as the case may be, and under this Subsection. No more than 501 Hours shall be credited under this Subsection for a period of time during which an Employee did not or would not have performed duties. 
		

		
			(d)Special rules for determining Hours of Service under Subsections (b) and (c) for reasons other than the performance of duties. In the case of a payment which is made or due which results in the crediting of Hours of Service under Subsection (b) or in the case of an award or agreement for back pay, to the extent that such an award or agreement is made with respect to a period during which an Employee performs no duties, the number of Hours of Service to be credited shall be determined as follows: 
		

		
			(i) In the case of a payment made or due which is calculated on the basis of units of time (such as hours, days, weeks or months), the number of Hours of Service to be credited shall be determined as provided in Subsection (a). 
		

		
			(ii) Except as provided in Paragraph (d)(iii), in the case of a payment made or due which is not calculated on the basis of units of time, the number of Hours of Service to be credited shall be equal to the amount of the payment divided by the Employee’s most recent hourly rate of compensation (as determined below) before the period during which no duties are performed. 
		

		
			(A)    In the case of General Agents, the hourly rate of compensation shall be the Employee’s most recent rate of semi-monthly compensation divided by 80. 
		

		
			 
		

		
			(B)     In the case of life insurance agents, the hourly rate of compensation shall be the minimum wage as established from time to time under Section 6(a)(1) of the Fair Labor Standards Act of 1938, as amended. 
		

		
			(iii) Rule against double credit. An Employee shall not be credited on account of a period during which no duties are performed with more hours than such Employee would have been credited but for such absence. 
		

		

		

		 

		

			6

		

		

			 

		

 

		(e)Crediting of Hours of Service to computation periods.  
		

		
			(i) Hours of Service described in Subsection (a) shall be credited to the Employee for the computation period or periods in which the duties are performed. 
		

		
			(ii) Hours of Service described in Subsection (b) shall be credited as follows: 
		

		
			(A)     Hours of Service credited to an Employee on account of a payment which is calculated on the basis of units of time (such as hours, days, weeks or months) shall be credited to the computation period or periods in which the period during which no duties are performed occurs, beginning with the first unit of time to which the payment relates. 
		

		
			(B)      Hours of Service credited to an Employee by reason of a payment which is not calculated on the basis of units of time shall be credited to the computation period in which the period during which no duties are performed occurs, or if the period during which no duties are performed extends beyond one computation period, such Hours of Service shall be allocated between not more than the first two computation periods in accordance with reasonable rules established by the Employer, which rules shall be consistently applied with respect to all Employees within the same job classification, reasonably defined. 
		

		
			(iii) Hours of Service described in Subsection (c) shall be credited to the computation period or periods to which the award or agreement for back pay pertains, rather than to the computation period in which the award, agreement or payment is made. 
		

		
			(f)For purposes of Article III (Participation Requirements), determining eligibility for early retirement (Section 5.02) and Article VII (Benefits upon Termination from Service), Hours of Service shall also include Hours of Service determined in accordance with the rules set forth in this Section 2.12 and which would not have been excluded if such Service had been performed with the Employer, completed prior or subsequent to the Employee’s commencement of service with the Employer, completed with an Affiliate, as a General Agent or with the Employer in a position in which he was not eligible to participate in this Plan. 
		

		
			 
		

		
			(g)Rules for Maternity or Paternity Leaves of Absence. In addition to the foregoing rules and solely for purposes of determining whether a One Year Break in Service for participation and vesting purposes has occurred in a computation period, an individual who is absent for maternity or paternity reasons, shall receive credit for the Hours of Service which would otherwise have been credited to such individual but for such absence, or in any case in which such Hours cannot be determined, 8 Hours of Service per day of such absence. Provided,  however, that: 
		

		
			(i) Hours shall not be credited under both this Subsection (g) and one of the other Subsections of this Section 2.12; 
		

		
			(ii) no more than 501 hours shall be credited for each maternity or paternity absence; and 
		

		
			(iii) if a maternity or paternity leave extends beyond one Plan Year, the Hours shall be credited to the Plan Year in which the absence begins to the extent necessary to prevent a One Year Break in Service, otherwise such Hours shall be credited to the following Plan Year. For purposes of this paragraph, an absence from work for maternity or paternity reasons means an absence (i) by reason of the pregnancy of the individual, (ii) by reason of a birth of a child of the individual, (iii) by reason of the placement of a child with the individual, in connection with the adoption of such child by such individual, or (iv) for purposes of caring for such child for a period beginning immediately following such birth or placement. 
		

		
			(h)Other Federal Law. Nothing in this Section 2.12 shall be construed to alter, amend, modify, invalidate, impair or supersede any law of the United States or any rule or regulation issued under any such law. 
		

		
			2.13   “Normal Retirement Age” means the later of: 
		

		
			(a)the 65th birthday of the Employee; or 
		

		
			(b)the fifth anniversary of the time the Participant commenced participation in Part II of the Plan. 
		

		
			For purposes of the foregoing, the participation commencement date is the first day of the Plan Year in which the Participant commenced participation in Part II of the Plan. 
		

		
			2.14   “Normal Retirement Date” shall mean the first day of the month next following the Participant’s Normal Retirement Age. 
		

		
			2.15    (a)      “One Year Break in Service” means, except for purposes of Article III (Participation Requirements), any Plan Year during which the Employee has not completed more than 500 Hours of Service.
		

		
			(b)       For purposes of Article III, “One Year Break in Service” means a twelve consecutive month period, computed with reference to the date the Employee’s employment commenced, during which the Employee does not complete more than 500 Hours of Service. 
		

		

		

		 

		

			7

		

		

			 

		

 

		ARTICLE III 
		

		
			PARTICIPATION REQUIREMENTS 
		

		
			3.01   Participation Requirements.  
		

		
			(a)Employee Participation. Individuals who were Participants in Part II of the Plan on December 31, 2009 shall continue as a Participant in this Part II of the Plan on January 1, 2010. On and after January 1, 1983 no additional Employees shall be eligible to become Participants in Part II of the Plan. 
		

		
			(b)Notwithstanding the rules set forth in Subsection (a), a Former Participant who again becomes eligible to participate in Part II of the Plan will become a Participant on the date of his recommencement of service with the Employer. 
		

		
			(c)Notwithstanding anything in Part II of the Plan to the contrary, for periods commencing on and after January 1, 2003, a Former Participant who is re-employed as an Employee shall be reinstated as an active Plan Participant only for purposes of increasing Plan vesting on his or her frozen Accrued Benefit and for purposes of determining eligibility for early retirement under Section 5.02. 
		

		
			3.02      Classification Changes. In the event of a change in job classification, such that an Employee, although still in the employment of the Employer, no longer is an eligible Employee, he shall receive no further Credited Service under Part II of the Plan, and the Participant’s Accrued Benefit on the date he becomes ineligible shall continue to vest, become payable or be forfeited, as the case may be, in the same manner and to the same extent as if the Employee had remained a Participant. 
		

		
			For periods commencing prior to January 1, 2003, in the event a Participant becomes ineligible to accrue further Credited Service because he is no longer a member of an eligible class of Employees, but has not terminated his employment with the Employer, such Employee shall again be eligible to accrue further Credited Service immediately upon his return to an eligible class of Employees. 
		

		
			3.03    Participant Cooperation. Each eligible Employee who becomes a Participant thereby agrees to be bound by all of the terms and conditions of this Plan. Each eligible 
		

		
			Employee, by becoming a Participant, agrees to cooperate fully with the Insurer, including completion and signing of such forms as are required by the Insurer under the Group Annuity Contract. 
		

		
			ARTICLE IV 
		

		
			EMPLOYER CONTRIBUTIONS 
		

		
			4.01    Employer Contributions. Each Employer shall pay to the Trustee for each Plan Year such amount which, when combined with required Employee Contributions, shall be necessary in the opinion of the Plan’s enrolled actuary to provide the benefits of Part II of the Plan. 
		

		
			4.02    Plan Contributions to Trustees. The Employer shall make payment of all contributions directly to the Trustee to be held, managed and invested in one or more Group Annuity Contracts and in other investments permitted under the Trust, but subject to Section 4.03. 
		

		
			4.03      Receipt of Contributions by Trustee. The Trustee shall accept and hold under the Trust Indenture such contributions of money, or other property approved for acceptance by the Trustee, on behalf of the Employer and its Employees and Beneficiaries, as it may receive from time to time, other than cash it is instructed to remit to the Insurer for deposit with the Insurer. However, the payor may pay contributions directly to the Insurer and such payment shall be deemed a contribution to the Trust to the same extent as if payment had been made to the Trustee. All such contributions shall be accompanied by written instructions from the Plan Administrator accounting for the manner in which they are to be credited. 
		

		
			Notwithstanding the foregoing, for periods commencing on and after January 1, 1992, Plan contributions will also be used to fund costs and provide benefits under the merged State Mutual Companies’ Pension Plan, which plan was merged with The Allmerica Financial Agents’ Pension Plan on such date. 
		

		
			ARTICLE V 
		

		
			RETIREMENT AND DISABILITY BENEFITS 
		

		
			5.01      Normal Retirement Benefit. (Applicable to all Employees who are active Participants on or after January 1, 1999). 
		

		
			Except as provided in Sections 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans) and Section 5.06 of Part II of the Plan, each Participant who retires on his Normal Retirement Date shall be entitled to receive a monthly retirement 
		

		 

		

			8

		

		

			 

		

 

		income, commencing on his Normal Retirement Date and terminating on the last regular payment date prior to his death, which monthly retirement income will be equal to the sum of (a) and, if applicable, (b) below: 
		

		
			(a)The Participant’s Grandfathered Benefit; and 
		

		
			 
		

		
			(b)For those Participants whose Participant Number is listed on Exhibit B, attached hereto and made a part hereof, an amount equal to 1/12 of the Participant’s Post-1998 Annual Accrued Benefit. 
		

		
			For purposes of Part II of the Plan, a Participant’s Post-1998 Annual Accrued Benefit shall be equal to the Participant’s total Compensation paid during all Years of Credited Service completed after December 31, 1998 multiplied by the Participant’s individual accrual percentage. Each eligible Participant’s accrual percentage is set forth in Exhibit B. 
		

		
			5.02    Early Retirement Benefit.  
		

		
			An actively employed Participant in Part II of the Plan who has completed at least 15 Years of Service may retire on the first day of any month after his 55th birthday, in which event, except as provided in Section 5.06, he shall receive a monthly retirement benefit equal to the appropriate percentage set forth below of his Accrued Benefit. 
		

		
			Notwithstanding the above, if the Plan is top heavy and the minimum benefit for Non-Key Employees described in Section 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans) is to be provided to the Participant, the Participant’s early retirement benefit shall be equal to the appropriate percentage set forth below of the Participant’s Accrued Benefit (as described in Section 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans)) earned as of the date of his early retirement. 
		

		
			In the event of early retirement, benefits shall be determined as of the date of retirement and shall be equal to the following percentage of the benefit payable at Age 65: 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Retirement Age*

					
					
						 

					
					
						Percentage of

					
						Monthly Accrued Benefit

				
	
					
						 

					
					
						 

				
	
					
						65.......................................................................................................

					
					
						 

					
					
						100%

				
	
					
						64.......................................................................................................

					
					
						 

					
					
						97

				
	
					
						63.......................................................................................................

					
					
						 

					
					
						94

				
	
					
						62.......................................................................................................

					
					
						 

					
					
						91

				
	
					
						61.......................................................................................................

					
					
						 

					
					
						88

				
	
					
						60.......................................................................................................

					
					
						 

					
					
						85

				
	
					
						59.......................................................................................................

					
					
						 

					
					
						82

				
	
					
						58.......................................................................................................

					
					
						 

					
					
						79

				
	
					
						57.......................................................................................................

					
					
						 

					
					
						76

				
	
					
						56.......................................................................................................

					
					
						 

					
					
						73

				
	
					
						55.......................................................................................................

					
					
						 

					
					
						70

				
	
					
						54.......................................................................................................

					
					
						 

					
					
						67

				
	
					
						53.......................................................................................................

					
					
						 

					
					
						64

				
	
					
						52.......................................................................................................

					
					
						 

					
					
						61

				
	
					
						51.......................................................................................................

					
					
						 

					
					
						58

				
	
					
						50.......................................................................................................

					
					
						 

					
					
						55

				

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						*If benefit payments commence in a month other than the month in which the Participant attains the specified Age, the percentage shall be determined by straight line interpolation.

				

		
			 
		

		
			 
		

		
			If a Participant terminates his employment (or terminates his Career Agent Contract) after having completed at least 15 Years of Service, he may elect to retire at any time after the first day of the month next following his 55th birthday and prior to his Normal Retirement Date and receive a retirement benefit based on his Credited Service as of the date of termination. The benefit to be provided to any such terminee shall be equal to the appropriate percentage set forth above of his Accrued Benefit. 
		

		
			Notwithstanding anything in this Section to the contrary, any Participant who was actively employed on June 30, 1977 may elect early retirement on the earlier of (i) and (ii) below, in which event, except as provided in Section 5.06, he shall receive a monthly retirement benefit equal to the appropriate percentage set forth above of his Accrued Benefit. 
		

		
			(i) the first day of the month following attainment of Age 50, and completion of at least 20 Years of Service; and 
		

		
			(ii) the first day of any month following attainment of Age 55 and completion of at least 15 Years of Service. 
		

		

		

		 

		

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		5.03    Late Retirement Benefit.  
		

		
			With the consent of the Employer, a Participant may elect to have his retirement benefit deferred to a late retirement date which may be the first day of any month after his Normal Retirement Date; provided,  however, that Employer consent shall not be required for Employees protected beyond their Normal Retirement Date under the Age Discrimination in Employment Act of 1967, as amended or under applicable state law. Except as provided in Section 5.06, the monthly benefit payable to the Participant on his late retirement date shall be equal to the sum of (a) and (b) below: 
		

		
			(a)The Participant’s Grandfathered Benefit, which benefit will be actuarially increased; and 
		

		
			(b)For those Participants whose Participant Number is listed on Exhibit B, attached hereto and made a part hereof, an amount equal to 1/12 the Participant’s Post-1998 Annual Accrued Benefit, which benefit will be actuarially increased. 
		

		
			For purposes of Part II of the Plan, a Participant’s Post-1998 Annual Accrued Benefit shall be equal to the Participant’s total Compensation paid during all Years of Credited Service completed after December 31, 1998, including Years of Credited Service completed after the Participant’s Normal Retirement Date, multiplied by the Participant’s individual accrual percentage. Each eligible Participant’s accrual percentage is set forth in Exhibit B. Actuarial increases will be determined as provided in Exhibit A, attached hereto and made a part hereof. 
		

		
			 
		

		
			Notwithstanding the above, if the Plan is top heavy and the minimum benefit for Non-Key Employees described in Section 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans) is to be provided to the Participant, the Participant’s late retirement benefit shall be determined in accordance with Section 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans), with top-heavy minimum benefits being computed for each Year of Service completed until the Participant’s Late Retirement Date, which resulting benefit shall be actuarially increased. 
		

		
			5.04      Disability Benefit.  
		

		
			If a Participant becomes Totally Disabled while employed as a General Agent or while his Career Agent Contract remains in force and if such total disability commenced after the Participant had completed at least five Years of Credited Service, it shall be assumed for purposes of this Plan that his employment or contractual relationship continued unchanged from the date of the commencement of his total disability to the earliest of his Normal Retirement Date, death, termination of employment (or, in the case of an Agent, termination of his Career Agent Contract) or the date that he is no longer Totally Disabled. While an Employee is Totally Disabled it shall be assumed for purposes of this Section that the Employee continued to earn annually an amount determined by dividing by three the Compensation paid to the Participant during the 36 months prior to the month in which he became Totally Disabled. 
		

		
			For purposes of this Part II of the Plan “Totally Disabled” means the inability to perform the duties of any occupation for which the Employee is reasonably fitted by training, education or experience; provided, however, that during the first 30 months of any disability an Employee will be considered Totally Disabled if he is unable to perform the duties of his occupation and is not working at any other occupation unless such occupation constitutes rehabilitative employment approved by the Plan Administrator. 
		

		
			5.05    Distribution of Benefits. The Plan Administrator shall direct the Insurer to commence payment of benefits provided under this Article V (or provided to a Former Participant pursuant to Article VII of Part II of the Plan). Plan benefits will be paid only on death, disability, termination of employment, Plan termination or retirement. 
		

		
			Except as otherwise provided in Section 5.06 of Part II of the Plan, the requirements of this Section shall apply to any distribution of a Participant’s interest and will take precedence over any inconsistent provisions of this Part II of the Plan. 
		

		
			All distributions required under the Plan shall be determined and made in accordance with the Regulations under Code Section 401(a)(9), including, to the extent applicable, the minimum distribution incidental benefit requirement of Section 1.401(a)(9)-2 of the proposed Regulations. 
		

		
			 
		

		
			Except as provided below and in Section 5.06, a Participant’s retirement benefit shall be payable as a life annuity for the life of the Participant with no further benefits payable after the last regular payment date prior to his death. 
		

		
			At any time prior to actual retirement a Participant, with spousal consent if the Participant is married, may elect to receive his retirement benefit under one or more of the following settlement options: 
		

		
			(a)An annuity for the joint lives of the Participant and his spouse with 50% or 66 2/3% (whichever is specified when this option is elected) of such amount payable as an annuity for life to the survivor. No further benefits are payable after the death of both the Participant and his spouse. 
		

		
			(b)An annuity for the life of the Participant and upon his death 100%, 66 2/3%, or 50% (whichever is specified when this option is elected) of the annuity amount will be continued to his spouse as his contingent annuitant. No further annuity benefits are payable after the death of both the Participant and his spouse. 
		

		

		

		 

		

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		(c)An annuity for the life of the Participant with guaranteed installment payments for a period certain not longer than the life expectancy of the Participant. 
		

		
			(d)An annuity for the life of the Participant with guaranteed installment payments for a period certain not longer than the life expectancy of the Participant and his spouse. 
		

		
			(e)A lump sum amount equal to the present value of the portion of the Participant’s Accrued Benefit described in Section 2.01(b) attributable to required Employee Contributions. Additionally, the Participant shall be entitled to receive a monthly annuity benefit equal to the portion of his Accrued Benefit described in Section 2.01(a) attributable to Employer Contributions. The Participant may elect to receive such monthly annuity benefit under one or more of the options described in (a) through (d) above, subject to spousal consent if the Participant is married. 
		

		
			All optional forms of benefits shall be the Actuarial Equivalent (as of the date selected) of the normal retirement benefits described in Section 5.01 of Part II of the Plan or Section 2.03 of Part III of the Plan (Minimum Benefit for Top Heavy Plans). Any spousal consent shall satisfy the requirements of Section 5.06. 
		

		
			Unless the Participant elects otherwise, distribution of benefits will begin no later than the 60th day after the later of the close of the Plan Year in which: 
		

		
			(i) the Participant attains Normal Retirement Age; or 
		

		
			(ii) the Participant terminates service with the Employer. 
		

		
			 
		

		
			Notwithstanding the foregoing, the failure of a Participant and spouse (or where either the Participant or the spouse has died, the survivor) to consent to a distribution when a benefit is “immediately distributable” (as described below) shall be deemed to be an election to defer commencement of payment of any benefit sufficient to satisfy this Section 5.05 (and provisions of Article III of Part III of the Plan). In no event will benefits begin to be distributed prior to the later of Age 62 or Normal Retirement Age without the consent of the Participant. The consent of the Participant’s spouse will also be required for any such distribution unless the benefit is paid in the form of a Qualified Joint and Survivor Annuity. 
		

		
			If the Accrued Benefit is immediately distributable, the Participant and the Participant’s spouse (or where either the Participant or the spouse has died, the survivor) must consent to any distribution of such Accrued Benefit. The consent of the Participant and the Participant’s spouse shall be obtained in writing within the 90-day period (180-day period for Plan Years beginning January 1, 2007 and thereafter) ending on the annuity starting date. The “annuity starting date” is the first day of the first period for which an amount is paid as an annuity or any other form. The Plan Administrator shall notify the Participant and the Participant’s spouse of the right to defer any distribution until the Participant’s Accrued Benefit is no longer immediately distributable. Such notification shall include a general description of the material features, and an explanation of the relative values of, the optional forms of benefit available under Part II of the Plan in a manner that would satisfy the notice requirements of Section 417(a)(3) of the Code, and shall be provided no less than 30 days and no more than 90 days (180 days for Plan Years beginning January 1, 2007 and thereafter) prior to the annuity starting date. 
		

		
			Notwithstanding the foregoing, only the Participant need consent to the commencement of a distribution in the form of a Qualified Joint and Survivor Annuity while the Accrued Benefit is immediately distributable. Neither the consent of the Participant nor the Participant’s spouse shall be required to the extent that a distribution is required to satisfy Section 401(a)(9) or Section 415 of the Code. 
		

		
			An Accrued Benefit is immediately distributable if any part of the Accrued Benefit could be distributed to the Participant (or surviving spouse) before the Participant attains (or would have attained if not deceased) the later of Normal Retirement Age or Age 62. 
		

		
			Notwithstanding the above, the distribution of the entire interest of a Participant or a Beneficiary must not violate the minimum required distribution rules set forth in Article III of Part III of the Plan. 
		

		

		

		 

		

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			5.06   Qualified Joint and Survivor Annuity for Married Participants.  
		

		
			(a)    General Rules. Notwithstanding anything in this Article to the contrary, unless a married Participant’s Accrued Benefit has been paid in a lump sum pursuant to Section 5.05 above, such Participant’s retirement benefit will be payable to the Participant and his spouse in the form of a Qualified Joint and Survivor Annuity, with the survivor to receive 100% of the benefit which had been payable during their joint lives, unless an optional form of benefit is selected pursuant to a qualified election within the 90-day period (180-day period for Plan Years beginning January 1, 2007 and thereafter) ending on the annuity starting date. In the case of an unmarried Participant, unless the Participant elects an optional form of benefit the Participant’s retirement benefit will be paid in the form of a no-death benefit life annuity. 
		

		
			           (b)   Definitions.  
		

		
			(i)       Qualified election: A waiver of a Qualified Joint and Survivor Annuity. Any waiver of a Qualified Joint and       Survivor Annuity shall not be effective unless: (A) the Participant’s spouse consents in writing to the election; (B) the election designates a specific Beneficiary, including any class of Beneficiaries or any contingent Beneficiaries, which may not be changed without spousal consent (or the spouse expressly permits designations by the Participant without any further spousal consent); (C) the spouse’s consent acknowledges the effect of the election; and (D) the spouse’s consent is witnessed by a Plan representative or notary public. Additionally, a Participant’s waiver of the Qualified Joint and Survivor Annuity will not be effective unless the election designates a form of benefit payment which may not be changed without spousal consent (or the spouse expressly permits designations by the Participant without any further spousal consent). If it is established to the satisfaction of a Plan representative that there is no spouse or that the spouse cannot be located, a waiver will be deemed a qualified election. 
		

		
			Any consent by a spouse obtained under this provision (or establishment that the consent of a spouse may not be obtained) shall be effective only with respect to such spouse. A consent that permits designations by the Participant without any requirement of further consent by such spouse must acknowledge that the spouse has the right to limit consent to a specific Beneficiary, and a specific form of benefit where applicable, and that the spouse voluntarily elects to relinquish either or both of such rights. A revocation of a prior waiver may be made by a Participant without the consent of the spouse at any time before the commencement of benefits. The number of revocations shall not be limited. No consent obtained under this provision shall be valid unless the Participant has received notice as provided in Subsection (c) below. 
		

		
			(ii)      Spouse (surviving spouse): the opposite-gender person, if any, to whom the Participant is lawfully married at the date of his death or at his annuity starting date, whichever is earlier, provided that a former spouse will be treated as the spouse or surviving spouse to the extent provided under a Qualified Domestic Relations Order. 
		

		
			(iii)      Annuity starting date: The first day of the first period for which an amount is paid as an annuity or under any other form. 
		

		
			(c)Notice Requirement.  
		

		
			(i) In the case of a Qualified Joint and Survivor Annuity as described in Subsection (a), the Plan Administrator shall provide each Participant no less than 30 days and no more than 90 days (180 days for Plan Years beginning January 1, 2007 and thereafter) prior to the annuity starting date a written explanation of: (A) the terms and conditions of a Qualified Joint and Survivor Annuity; (B) the Participant’s right to make and the effect of an election to waive the Qualified Joint and Survivor Annuity form of benefit; (C) the rights of a Participant’s spouse; (D) the right to make, and the effect of, a revocation of a previous election to waive the Qualified Joint and Survivor Annuity; and (E) the relative values of the various optional forms of benefit under Part II of the Plan. Notices given to Participants pursuant to Code Section 411(a)(11) in Plan Years beginning after December 31, 2006 shall include a description of how much larger benefits will be if the commencement of distributions is deferred. 
		

		

		

		 

		

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			(ii) A Participant may commence receiving a distribution in a form other than a Qualified Joint and Survivor Annuity less than 30 days after receipt of the written explanation described in the preceding paragraph provided: (1) the Participant has been provided with information that clearly indicates that the Participant has at least 30 days to consider whether to waive the Qualified Joint and Survivor Annuity and elect (with spousal consent) a form of distribution other than a Qualified Joint and Survivor Annuity; (2) the Participant is permitted to revoke any affirmative distribution election at least until the Distribution Commencement Date or, if later, at any time prior to the expiration of the 7-day period that begins the day after the explanation of the Qualified Joint and Survivor Annuity is provided to the Participant; and (3) the Distribution Commencement Date is after the date the written explanation was provided to the Participant. For distributions on or after December 31, 1996, the Distribution Commencement Date may be a date prior to the date the written explanation is provided to the Participant if the distribution does not commence until at least 30 days after such written explanation is provided, subject to the waiver of the 30-day period. For the purposes of this paragraph, the “Distribution Commencement Date” is the date a Participant commences distributions from Part II of the Plan. If a Participant commences distribution with respect to a portion of his/her Accrued Benefit, a separate Distribution Commencement Date applies to any subsequent distribution. If distribution is made in the form of an annuity, the Distribution Commencement Date is the first day of the first period for which annuity payments are made. 
		

		
			 
		

		
			(d)Applicability. The provisions of this Section 5.06 shall apply to any Participant who is credited with at least one Hour of Service with the Employer on or after January 1, 1976. In addition, any living Participant or Former Participant not receiving Plan benefits on August 23, 1984 who would otherwise not receive the benefits prescribed by this Section 5.06 shall be given the opportunity to elect to have the provisions of this Section apply provided such Participant or Former Participant was credited with at least one Hour of Service under this Plan or a predecessor Plan on or after September 2, 1974. 
		

		
			The opportunity to elect a Qualified Joint and Survivor retirement option must be afforded to the appropriate Participants or Former Participants during the period commencing on August 23, 1984 and ending on the dates benefits would otherwise commence to such person. 
		

		
			5.07   Supplementary Pension Benefits.  
		

		
			Effective July 1, 1986, and on each July 1 thereafter, the amount of monthly retirement benefits payable to eligible retirees (as described below) or their Beneficiaries shall be increased by a percentage determined in accordance with the following formula: 
		

		
			Percentage Increase = .8 (M - .07) x 100 
		

		
			For Plan Years beginning after December 31, 2008, for purposes of the above formula, “M” equals the annual coupon return on December 31, 2009 and on each December 31 thereafter of the Barclays Capital U.S. Government/Credit 5-10 Year Index, or its successor. 
		

		
			For Plan Years beginning before January 1, 2009, for purposes of the above formula, “M” equals the earnings rate for the prior Plan Year on assets representing retired life reserves for retirees under this Plan and retirees under The Allmerica Financial Cash Balance Pension Plan as adopted by First Allmerica (now known as The Hanover Insurance Company Cash Balance Pension Plan), certain of First Allmerica’s General Agents, retirees of The Hanover Insurance Company (“Hanover”) and retirees of Citizens Insurance Company of America, both Affiliates of First Allmerica. Additionally, in determining “M”, retired life reserve assets attributable to retirees of Beacon Insurance Company of America, formerly an Affiliate of Hanover, shall be aggregated and combined with the retired life reserve assets of this Plan. 
		

		
			For the Plan Years for which “M” depended on the returns of designated retired life reserve assets, the earnings rate on retired life reserve assets was to be determined by an actuary, using the “investment year block” method of crediting interest that First Allmerica used to credit interest on its Experience Rated group annuity contracts that are in force on an active basis. The resulting earnings rate(s) should neither be associated with nor construed as the investment yield (all or in part) of the pension fund. 
		

		
			For each Plan Year for which “M” depended on the returns of designated retired life reserve assets, the retired life reserve assets for newly qualified retirees to be added to the total retired life assets outstanding was to be determined using a 7% interest rate and the 1971 GAM mortality table. 
		

		
			 
		

		
			The determination of “M” and of the overall earnings rate(s) shall be final and conclusively binding for all persons. 
		

		
			 
		

		
			The effective date for the payment of supplemental pension benefits paid as a result of this Section shall be each July 1, commencing with July 1, 1986. Those eligible to receive supplemental pension benefits as a result of this Section shall be those Plan retirees and their Beneficiaries who were receiving basic Plan retirement benefits on the July 1 increase effective date, had been retired for at least 18 months on such increase effective date, and: 
		

		

		

		 

		

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		(A)     were actively employed Plan Participants who had elected an immediate early retirement benefit pursuant to Section 5.02 (or its successor, if any): 
		

		
			(B)     had terminated employment after having met the eligibility requirements for early retirement specified in Section 5.02 (or its successor, if any) and elected to defer receipt of retirement benefits; or 
		

		
			(C)     had retired on or after their Normal Retirement Age after having completed at least 15 Years of Service. 
		

		
			The Beneficiaries of any retiree meeting the above requirements shall be entitled to receive a supplemental pension benefit under this Section if the Beneficiaries were receiving Plan survivor benefits on the July 1 increase effective date. 
		

		
			A supplemental pension benefit determined under this Section shall be added to and become a part of the recipient’s basic Plan benefit and shall be payable during such period and under such option as the basic Plan benefit is being paid. 
		

		
			5.08   Rollovers to Other Qualified Plans.  
		

		
			(a)Notwithstanding any provision of Part II of the Plan to the contrary that would otherwise limit a distributee’s election under this Article or under Articles VI and VII, a distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. 
		

		
			(b)Definitions.  
		

		
			(i) Eligible rollover distribution: An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee’s designated Beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under Section 401(a)(9) of the Code; the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); and any other distribution(s) that is reasonably expected to total less than $200 during a year. A portion of a distribution shall not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, such portion may be transferred only to (i) an individual retirement account or annuity described in Section 408(a) or (b) of the Internal Revenue Code; (ii) for taxable years beginning after December 31, 2001 and before January 1, 2007, to a qualified trust which is part of a defined contribution plan that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible; or (iii) for taxable years beginning after December 31, 2006, to a qualified trust or to an annuity contract described in Section 403(b) of the Internal Revenue Code, if such trust or contract provides for separate accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. 
		

		
			(ii) Eligible retirement plan: An eligible retirement plan is an individual retirement account described in Section 408(a) of the Code, an individual retirement annuity described in Section 408(b) of the Code, a Roth IRA as pursuant to in Section 408A(e) of the Code, an annuity plan described in Section 403(a) of the Code, an annuity plan described in Section 403(a) of the Code, or a qualified Plan described in Section 401(a) of the Code, that accepts the distributee’s eligible rollover distribution or an eligible plan under Section 457(b) of the Code which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this plan. However, in the case of an eligible rollover distribution to the surviving spouse, an eligible retirement plan is an individual retirement account or individual retirement annuity. 
		

		
			(iii) Distributee: A distributee includes an Employee or former Employee. In addition, the Employee’s or former Employee’s surviving spouse and the Employee’s surviving spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Section 414(p) of the Code, are distributees with regard to the interest of the spouse or former spouse. 
		

		
			 
		

		

		

		 

		

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			(iv) Direct rollover: A direct rollover is a payment by the Plan to the eligible retirement plan specified by the distributee. For distributions after June 9, 2009, a non-spouse Beneficiary who is a “designated beneficiary” under Code Section 401(a)(9)(E) and the regulations thereunder, by a direct trustee-to-trustee transfer (“direct rollover”), may roll over all or any portion of his or her distribution to an individual retirement account the Beneficiary establishes for purposes of receiving the distribution. In order to be able to do a direct rollover of the distribution, the distribution otherwise must satisfy the definition of an eligible rollover distribution. 
		

		
			(v) For distributions after June 9, 2009, a non-spouse Beneficiary who is a “designated beneficiary” under Code Section 401(a)(9)(E) and the regulations thereunder, by a direct trustee-to-trustee transfer (“direct rollover”), may roll over all or any portion of his or her distribution to an individual retirement account the Beneficiary establishes for purposes of receiving the distribution. In order to do a direct rollover of the distribution, the distribution otherwise must satisfy the definition of an eligible rollover distribution. 
		

		
			Although a non-spouse Beneficiary may roll over directly a distribution as provided in Subsection (b)(iv) above, any distribution made prior to January 1, 2010 is not subject to the direct rollover requirements of Code Section 401(a)(31) (including Code Section 401(a)(31)(B)), the notice requirements of Code Section 402(f) or the mandatory withholding requirements of Code Section 3405(c)). If a non-spouse Beneficiary receives a distribution from the Plan, the distribution is not eligible for a “60-day” rollover. 
		

		
			If the Participant’s named Beneficiary is a trust, the Plan may make a direct rollover to an individual retirement account on behalf of the trust, provided the trust satisfies the requirements to be a “designated beneficiary” within the meaning of Code Section 401(a)(9)(E). 
		

		
			A non-spouse Beneficiary may not roll over an amount which is a required minimum distribution, as determined under applicable Treasury regulations and other Internal Revenue Service guidance. If the Participant dies before his or her required beginning date and the non-spouse Beneficiary rolls over to an IRA the maximum amount eligible for rollover, the Beneficiary may elect to use either the 5-year rule or the life expectancy rule, pursuant to Treasury Regulation Section 1.401(a)(9)-3, A-4(c), in determining the required minimum distributions from the IRA that receives the non-spouse Beneficiary’s distribution. 
		

		
			 
		

		
			ARTICLE VI 
		

		
			DEATH BENEFITS 
		

		
			6.01   Pre-Retirement Spouse Benefit for Married Participants.  
		

		
			(a)General Rules. The provisions of this Section shall apply to any Participant or Former Participant described in Subsection (b). 
		

		
			(i) If an eligible married Participant: 
		

		
			(A)     dies after attaining eligibility for early retirement but before actually retiring; 
		

		
			(B)        dies on or after his Normal Retirement Age while still working for the Employer; or 
		

		
			(C)     separates from service on or after his Normal Retirement Age (or after attaining the age necessary for early retirement) and after satisfying the eligibility requirements for the payment of benefits under Part II of the Plan and thereafter dies before beginning to receive such benefits; 
		

		
			then the Participant’s surviving spouse will receive a monthly retirement benefit equal to the benefit that would have been payable if the Participant had retired on the day before his death after having elected an immediate Qualified Joint and Survivor Annuity option with a 50% continuation of monthly benefits to be payable to the survivor. The amount of such 50% continuation shall be payable monthly for the life of such spouse, with the first payment payable as of the date of the Participant’s death, unless the spouse requests a later commencement date (consistent with the provisions of Part II of the Plan). 
		

		
			(ii) If a fully or partially vested eligible married Participant dies on or before the earliest retirement age, the Participant’s surviving spouse will receive the same benefit that would be payable if the Participant had: 
		

		
			(A)     separated from service on the date of death; 
		

		
			(B)      survived to the earliest retirement age; 
		

		
			(C)        retired at the earliest retirement age after having elected an immediate Qualified Joint and Survivor Annuity option with a 50% continuation of monthly benefits to be payable to the survivor; and 
		

		
			(D)     died on the day after the earliest retirement age. 
		

		
			 
		

		

		

		 

		

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		A surviving spouse entitled to benefits under this paragraph (ii) will begin to receive payments at the earliest retirement age unless the spouse requests an earlier or later commencement date (consistent with the provisions of Part II of the Plan). 
		

		
			For purposes of this paragraph (ii) the “earliest retirement age” is the earliest date on which, under Part II of the Plan, the Participant could elect to receive retirement benefits. 
		

		
			In the case of a partially vested Participant, benefits under this paragraph (ii) will be based on the Participant’s vested Accrued Benefit computed on the date of his death. 
		

		
			(b)Applicability. The provisions of paragraph (a)(i) shall apply to all Participants or Former Participants who were credited with an Hour of Service on or after January 1, 1976 who meet the eligibility requirements described in such paragraph and thereafter die before actually retiring. The provisions of Paragraph (a)(ii) shall apply to any Participant who is credited with at least one Hour of Service on or after August 23, 1984 and to any Participant or Former Participant living on August 23, 1984 not receiving Plan benefits on such date who was credited with at least one Hour of Service on or after January 1, 1976 and who had at least 10 years of vesting service when he separated from service. 
		

		
			6.02   Minimum Death Benefit. If no optional form of retirement benefit has been elected by a Participant pursuant to Section 5.05 of Part II of the Plan, a death benefit, as described below, shall be payable. If the death benefit is payable as a result of the Participant’s death, any such death benefit shall be payable to the Participant’s Beneficiary or, if no Beneficiary survives the Participant, to the executors or administrators of the Participant’s estate. If the Participant was survived by his spouse and (i) if the joint and survivor benefit described in Section 5.06 of Part II of the Plan was in effect on the date of the spouse’s death, or (ii) the pre-retirement spouse benefit described in Section 6.01 of Part II of the Plan was being paid to the spouse, any such death benefit shall be payable to the Participant’s Beneficiary, or if such Beneficiary does not survive the spouse, to the executors or administrators of the spouse’s estate. 
		

		
			The amount of this minimum death benefit will be equal to the Participant’s unrefunded required Contributions with Credited Interest to the first day of the month in which the earlier of the Participant’s death or retirement occurred reduced by (i), (ii) and (iii) below: 
		

		
			(i) the amount of monthly retirement payments which had been paid to the Participant; 
		

		
			(ii)  the amount of monthly payments which had been paid to the Participant and his spouse, if the joint and survivor benefit described in Section 5.08 was being paid; and 
		

		
			 
		

		
			(iii)  the amount of retirement benefits which had been paid to the spouse, if the pre-retirement spouse benefit described in Section 6.01 was being paid. 
		

		
			ARTICLE VII 
		

		
			BENEFITS UPON TERMINATION FROM SERVICE 
		

		
			7.01   In General. In the event that an Employee shall terminate service (or, in the case of a Career Agent, the agent terminates his Career Agent’s Contract) for any reason other than death, his becoming totally disabled (as described in Section 5.04), Normal, Early or Late Retirement, the interests and rights of such Participant shall be limited to those contained in this Article. 
		

		
			7.02   Options on Termination of Participation. Upon any termination of service described in Section 7.01, a Participant shall have the right, subject to any required spousal consent, to elect either Option 1 or Option 2 described below. 
		

		
			For purposes of determining the Actuarial Equivalent present value of benefits, values shall be calculated using the interest rate(s) specified in Section 2.02. 
		

		
			Any distributions made pursuant to this Article shall be subject to the requirements of Sections 5.05 and 5.06 of Part II of the Plan (and Article III of Part III of the Plan). 
		

		
			Option 1 - Deferred Benefit - Under this Option the Participant will receive a monthly retirement benefit commencing on his Normal Retirement Date equal to the sum of (a) and, if applicable, (b) below: 
		

		
			(a)1/12 of the annual deferred benefit described in Section 2.01(b), which deferred benefit is attributable to required Employee contributions. 
		

		
			(b)In addition, if as of his date of termination of participation the Employee has completed at least the minimum Years of Service required for vesting, he will receive commencing on his Normal Retirement Date, an additional monthly retirement benefit equal to (i) or (ii) below, whichever is applicable: 
		

		
			(i) the portion of the Accrued Benefit described in Section 2.01(a) derived from Employer Contributions, multiplied by the appropriate percentage in Subparagraph (iii) below. 
		

		

		

		 

		

			16

		

		

			 

		

 

		(ii) in the case of a Non-Key Employee Participant in a Top Heavy Plan, if greater than (i) above, the Accrued Benefit described in Section 2.01(c), multiplied by the appropriate percentage in Subparagraph (iii) below. 
		

		
			                              
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						(iii)

					
					
						  

					
					
						  Completed Years of Service

					
					
						  

					
					
						Nonforfeitable Percentage

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						  

					
					
						        Less than 5.............................................................................

					
					
						  

					
					
						                0%

				
	
					
						 

					
					
						  

					
					
						                         5 or more...............................................................

					
					
						  

					
					
						            100%

				

		
			 
		

		
			 
		

		
			Notwithstanding the above, if the Plan is a Top Heavy Plan for any Plan Year beginning after December 31, 1983, then the Plan shall meet the following vesting requirements for such Plan Year and for all subsequent Plan Years, even if the Plan is not a Top Heavy Plan for such subsequent Plan Years. 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Completed Years of Service

					
					
						 

					
					
						Nonforfeitable Percentage

				
	
					
						 

					
					
						 

				
	
					
						Less than 2..................................................................................... 

					
					
						 

					
					
						0%

				
	
					
						                 2.....................................................................................

					
					
						 

					
					
						20

				
	
					
						                 3.....................................................................................

					
					
						 

					
					
						40

				
	
					
						                 4.....................................................................................

					
					
						 

					
					
						60

				
	
					
						                 5 or more.........................................................................

					
					
						 

					
					
						100

				

		
			 
		

		
			Notwithstanding anything in Part II of the Plan to the contrary, the portion of an Employee’s Accrued Benefit derived from Employer Contributions shall be 100% vested upon completion of three (3) Years of Service. 
		

		
			Option 2 - Cash Option - Under this option, except as provided in Section 5.08, the Participant will receive an amount equal to (a)below plus, if applicable, a deferred benefit as described in (b) below: 
		

		
			(a)an amount equal to the present value of the portion of the Participant’s Accrued Benefit described in Section 2.01(b) attributable to required Employee Contributions, and 
		

		
			(b)In addition, if the Employee is fully or partially vested in the portion of his Accrued Benefit derived from Employer Contributions, as determined from the appropriate table above on the date of his termination of participation, he will receive, commencing on his Normal Retirement Date, a monthly retirement benefit determined in accordance with Subsection (b) of Option 1. 
		

		
			Option 1 will be deemed to have been elected by an Employee unless he elects Option 2 within 90 days of his termination of participation in this Plan. 
		

		
			For purposes of this Article VII, Years of Service means Plan Years during which an Employee completed at least 1,000 Hours of Service; provided,  however, for purposes of this Article service shall not be deemed to be interrupted or employment terminated because employment is transferred to a position or job with the Employer in which he is no longer eligible to participate in this Plan, or because the Employee becomes a General Agent who is not a common-law employee of the Company, but service shall be deemed terminated if the Employee terminates from the Employer or as a General Agent. 
		

		
			Notwithstanding anything in of Part II of the Plan to the contrary, a Participant’s Normal Retirement Benefit shall become 100% vested and nonforfeitable upon the attainment of his Normal Retirement Age. 
		

		
			 
		

		
			Notwithstanding anything in Part II of the Plan to the contrary, (i) a Participant who was actively employed on December 31, 2002 (or an agent whose Career Agent’s Contract had not been terminated prior to such date), and (ii) all Former Participants who had not incurred five consecutive One Year Breaks in Service as of December 31, 2002, shall have a fully vested and non-forfeitable interest in any Accrued Benefit that had not been distributed to the Participant or Former Participant prior to December 31, 2002. 
		

		
			7.03   Forfeitures. The non-vested portion of a Participant’s Accrued Benefit shall be treated as a forfeiture when the Participant or his or her spouse (or surviving spouse) receives a distribution of the present value of his or her vested Accrued Benefit attributable to Employer and Employee Contributions pursuant to Section 7.02 and the Participant’s service attributable to such distribution shall be disregarded as provided for in Section 7.06. For purposes of this Section, if the present value of a Participant’s vested Accrued Benefit is zero, the Participant shall be deemed to have received a distribution of such vested Accrued Benefit. 
		

		
			In the case of a partially vested terminated Participant who does not receive a distribution pursuant to the above paragraph, the value of the nonvested portion of his Accrued Benefit shall be treated as a forfeiture at the end of the Plan Year in which the Participant incurs a One Year Break in Service until the Participant has completed one Year of Service after he has been re-employed. 
		

		

		

		 

		

			17

		

		

			 

		

 

		Forfeitures will be used to reduce (i) Employer contributions for the Plan Year following the Plan Year in which the forfeiture occurs; and or (ii) the Employer’s costs under the Plan. 
		

		
			7.04   Resumption of Service. A Participant who terminates his or her participation in Part II of the Plan and who subsequently resumes service with the Employer will again become a Participant, if eligible, on the date of his or her recommencement of such service. 
		

		
			7.05   Distribution of Benefits. On the Former Participant’s Normal Retirement Date, benefits to which he or she is entitled pursuant to this Article shall be distributed in accordance with Article V. 
		

		
			If a Former Participant entitled to a deferred benefit pursuant to this Article VII dies prior to his or her Normal Retirement Date, the death benefit, if any, to which he is entitled shall be as is specified in Article VI. 
		

		
			7.06   Cash Out Repayment Option.  
		

		
			(a)Notwithstanding anything in this Article to the contrary, unless a repayment has been made in accordance with Subsection (b) below, in determining the portion of an Employee’s Accrued Benefit derived from Employer contributions (or, in the case of a Top Heavy Plan, the minimum benefit for Non-Key Employees described in Subsection 2.01(c)) after a resumption of participation, periods of service with respect to which the Employee received a distribution of the present value of his vested Accrued Benefit shall be disregarded. 
		

		
			 
		

		
			 (b)     In the case of the distribution of the present value of a partially vested Employee’s vested Accrued Benefit in accordance with Section 7.02, the Employee’s Accrued Benefit described in Sections 2.01(a) and (b) (including all optional forms of benefits and subsidies relating to such benefits) shall be restored if the Employee repays the amount distributed plus interest, compounded annually from the date of distribution at the rate of 5 percent. Such repayment must be made by the Employee before the earlier of five years after the first date on which the Employee is subsequently reemployed by the Employer, or the date the Employee incurs five consecutive One Year Breaks in Service following the date of distribution. 
		

		
			If an Employee is deemed to receive a distribution pursuant to this Article, and the Employee resumes employment covered under this Plan before the date on which the Employee could no longer repay his distribution under the preceding paragraph, upon the reemployment of such Employee, the Employer-derived Accrued Benefit will be restored to the amount of such Accrued Benefit on the date of the deemed distribution. 
		

		
			7.07   Early Retirement Election. Any Participant who terminates service after having completed at least fifteen Years of Service may elect to retire on the first day of any month following his 55th birthday. Any Participant who was actively employed on June 30, 1977 who terminates service after having completed at least twenty Years of Service may elect to retire on the first day of any month following his 50th birthday. 
		

		
			7.08   Amendment to Vesting Schedule. If the Vesting Schedule of Part II of the Plan is amended, or the Plan is amended in any way that directly or indirectly affects the computation of a Participant’s nonforfeitable percentage, or if the Plan is deemed amended by an automatic change to or from a top-heavy vesting schedule, each Participant with at least 3 Years of Service with the Employer may elect, within a reasonable period after the adoption of the amendment or change, to have their nonforfeitable percentage computed under Part II of the Plan without regard to such amendment or change. The period during which the election may be made shall commence with the date the amendment is adopted or deemed to be made and shall end on the latest of: 
		

		
			(1)   60 days after the amendment is adopted; 
		

		
			(2)   60 days after the amendment becomes effective; or 
		

		
			(3)   60 days after the Participant is issued written notice of the amendment by the Employer or Plan Administrator. 
		

		
			 
		

		

		

		 

		

			18

		

		

			 

		

 

		
		

		
			EXHIBIT A 
		

		
			ADJUSTMENT FACTORS FOR OPTIONAL AND LATE RETIREMENT BENEFITS 
		

		
			Factors for ages not illustrated on the following tables will be computed on an actuarial basis consistent with that used to compute the factors shown. 
		

		
			 
		

		
			JOINT AND SURVIVOR OPTION PERCENTAGES 
		

		
			(Applicable only if the Participant’s age, nearest birthday, on the date monthly income commences is 65). 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Age Nearest Birthday

					
						of Joint Annuitant

					
						on the Date Monthly Income

					
						Commences to  the Participant

					
					
						  

					
					
						Percentage of the Adjusted Retirement
Annuity Payments which are to be
Continued to the Surviving
Joint Annuitant

					
					
						 

				
	
					
						  

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						  

					
					
						100%

					
					
						 

					
					
						66 2/3%

					
					
						 

					
					
						 

					
					
						50%

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						50.....................................................................................................

					
					
						  

					
					
						80.3%

					
					
						 

					
					
						 

					
					
						87.1

					
					
						% 

					
					
						 

					
					
						 

					
					
						90.9

					
					
						% 

				
	
					
						51.....................................................................................................

					
					
						  

					
					
						80.7

					
					
						 

					
					
						 

					
					
						87.5

					
					
						  

					
					
						 

					
					
						 

					
					
						91.3

					
					
						  

				
	
					
						52.....................................................................................................

					
					
						  

					
					
						81.1

					
					
						 

					
					
						 

					
					
						87.9

					
					
						  

					
					
						 

					
					
						 

					
					
						91.8

					
					
						  

				
	
					
						53.....................................................................................................

					
					
						  

					
					
						81.5

					
					
						 

					
					
						 

					
					
						88.4

					
					
						  

					
					
						 

					
					
						 

					
					
						92.2

					
					
						  

				
	
					
						54.....................................................................................................

					
					
						  

					
					
						82.0

					
					
						 

					
					
						 

					
					
						88.8

					
					
						  

					
					
						 

					
					
						 

					
					
						92.7

					
					
						  

				
	
					
						55.....................................................................................................

					
					
						  

					
					
						82.4

					
					
						 

					
					
						 

					
					
						89.3

					
					
						  

					
					
						 

					
					
						 

					
					
						93.2

					
					
						  

				
	
					
						56.....................................................................................................

					
					
						  

					
					
						82.9

					
					
						 

					
					
						 

					
					
						89.8

					
					
						  

					
					
						 

					
					
						 

					
					
						93.8

					
					
						  

				
	
					
						57.....................................................................................................

					
					
						  

					
					
						83.3

					
					
						 

					
					
						 

					
					
						90.3

					
					
						  

					
					
						 

					
					
						 

					
					
						94.3

					
					
						  

				
	
					
						58.....................................................................................................

					
					
						  

					
					
						83.8

					
					
						 

					
					
						 

					
					
						90.9

					
					
						  

					
					
						 

					
					
						 

					
					
						94.9

					
					
						  

				
	
					
						59.....................................................................................................

					
					
						  

					
					
						84.3

					
					
						 

					
					
						 

					
					
						91.4

					
					
						  

					
					
						 

					
					
						 

					
					
						95.5

					
					
						  

				
	
					
						60.....................................................................................................

					
					
						  

					
					
						84.8

					
					
						 

					
					
						 

					
					
						92.0

					
					
						  

					
					
						 

					
					
						 

					
					
						96.1

					
					
						  

				
	
					
						61.....................................................................................................

					
					
						  

					
					
						85.3

					
					
						 

					
					
						 

					
					
						92.7

					
					
						  

					
					
						 

					
					
						 

					
					
						96.8

					
					
						  

				
	
					
						62.....................................................................................................

					
					
						  

					
					
						85.9

					
					
						 

					
					
						 

					
					
						93.3

					
					
						  

					
					
						 

					
					
						 

					
					
						97.5

					
					
						  

				
	
					
						63.....................................................................................................

					
					
						  

					
					
						86.4

					
					
						 

					
					
						 

					
					
						94.0

					
					
						  

					
					
						 

					
					
						 

					
					
						98.3

					
					
						  

				
	
					
						64.....................................................................................................

					
					
						  

					
					
						86.9

					
					
						 

					
					
						 

					
					
						94.7

					
					
						  

					
					
						 

					
					
						 

					
					
						99.1

					
					
						  

				
	
					
						65.....................................................................................................

					
					
						  

					
					
						87.5

					
					
						 

					
					
						 

					
					
						95.4

					
					
						  

					
					
						 

					
					
						 

					
					
						100.0

					
					
						  

				
	
					
						66.....................................................................................................

					
					
						  

					
					
						88.0

					
					
						 

					
					
						 

					
					
						96.2

					
					
						  

					
					
						 

					
					
						 

					
					
						100.0

					
					
						  

				
	
					
						67.....................................................................................................

					
					
						  

					
					
						88.6

					
					
						 

					
					
						 

					
					
						97.0

					
					
						  

					
					
						 

					
					
						 

					
					
						101.9

					
					
						  

				
	
					
						68.....................................................................................................

					
					
						  

					
					
						89.1

					
					
						 

					
					
						 

					
					
						97.9

					
					
						  

					
					
						 

					
					
						 

					
					
						102.9

					
					
						  

				
	
					
						69.....................................................................................................

					
					
						  

					
					
						89.6

					
					
						 

					
					
						 

					
					
						98.7

					
					
						  

					
					
						 

					
					
						 

					
					
						104.0

					
					
						  

				
	
					
						70.....................................................................................................

					
					
						  

					
					
						90.2

					
					
						 

					
					
						 

					
					
						99.6

					
					
						  

					
					
						 

					
					
						 

					
					
						105.1

					
					
						  

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						  

					
					
						1983 Group Annuity Table with Projection H, with mortality rates based on calendar year of birth of 1930 and interest at the rate of 7% per annum.

					
					
						           

				

		
			 
		

		

		

		 

		

			19

		

		

			 

		

 

		
		

		
			CONTINGENT ANNUITANT OPTION PERCENTAGES 
		

		
			(Applicable only if the Participant’s age, nearest birthday, on the date monthly income commences is 65). 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Age Nearest Birthday of Contingent Annuitant on

					
						the Date Monthly Income Commences to the

					
						Participant

					
					
						  

					
					
						Percentage of the Adjusted Retirement  Annuity
Payments which are to be Continued to the
Surviving Contingent Annuitant

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						  

					
					
						100%

					
					
						 

					
					
						 

					
					
						66 2/3%

					
					
						 

					
					
						 

					
					
						50%

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						50.............................................................................................

					
					
						  

					
					
						 

					
					
						80.3

					
					
						% 

					
					
						 

					
					
						 

					
					
						85.9

					
					
						% 

					
					
						 

					
					
						 

					
					
						89.0

					
					
						%~ 

				
	
					
						51.............................................................................................

					
					
						  

					
					
						 

					
					
						80.7

					
					
						  

					
					
						 

					
					
						 

					
					
						86.2

					
					
						  

					
					
						 

					
					
						 

					
					
						89.3

					
					
						  

				
	
					
						52.............................................................................................

					
					
						  

					
					
						 

					
					
						81.1

					
					
						  

					
					
						 

					
					
						 

					
					
						86.5

					
					
						  

					
					
						 

					
					
						 

					
					
						89.6

					
					
						  

				
	
					
						53.............................................................................................

					
					
						  

					
					
						 

					
					
						81.5

					
					
						  

					
					
						 

					
					
						 

					
					
						86.9

					
					
						  

					
					
						 

					
					
						 

					
					
						89.8

					
					
						  

				
	
					
						54.............................................................................................

					
					
						  

					
					
						 

					
					
						82.0

					
					
						  

					
					
						 

					
					
						 

					
					
						87.2

					
					
						  

					
					
						 

					
					
						 

					
					
						90.1

					
					
						  

				
	
					
						55.............................................................................................

					
					
						  

					
					
						 

					
					
						82.4

					
					
						  

					
					
						 

					
					
						 

					
					
						87.5

					
					
						  

					
					
						 

					
					
						 

					
					
						90.4

					
					
						  

				
	
					
						56.............................................................................................

					
					
						  

					
					
						 

					
					
						82.9

					
					
						  

					
					
						 

					
					
						 

					
					
						87.9

					
					
						  

					
					
						 

					
					
						 

					
					
						90.6

					
					
						  

				
	
					
						57.............................................................................................

					
					
						  

					
					
						 

					
					
						83.3

					
					
						  

					
					
						 

					
					
						 

					
					
						88.2

					
					
						  

					
					
						 

					
					
						 

					
					
						90.9

					
					
						  

				
	
					
						58.............................................................................................

					
					
						  

					
					
						 

					
					
						83.8

					
					
						  

					
					
						 

					
					
						 

					
					
						88.6

					
					
						  

					
					
						 

					
					
						 

					
					
						91.2

					
					
						  

				
	
					
						59.............................................................................................

					
					
						  

					
					
						 

					
					
						84.3

					
					
						  

					
					
						 

					
					
						 

					
					
						89.0

					
					
						  

					
					
						 

					
					
						 

					
					
						91.5

					
					
						  

				
	
					
						60.............................................................................................

					
					
						  

					
					
						 

					
					
						84.8

					
					
						  

					
					
						 

					
					
						 

					
					
						89.3

					
					
						  

					
					
						 

					
					
						 

					
					
						91.8

					
					
						  

				
	
					
						61.............................................................................................

					
					
						  

					
					
						 

					
					
						85.3

					
					
						  

					
					
						 

					
					
						 

					
					
						89.7

					
					
						  

					
					
						 

					
					
						 

					
					
						92.1

					
					
						  

				
	
					
						62.............................................................................................

					
					
						  

					
					
						 

					
					
						85.9

					
					
						  

					
					
						 

					
					
						 

					
					
						90.1

					
					
						  

					
					
						 

					
					
						 

					
					
						92.4

					
					
						  

				
	
					
						63.............................................................................................

					
					
						  

					
					
						 

					
					
						86.4

					
					
						  

					
					
						 

					
					
						 

					
					
						90.5

					
					
						  

					
					
						 

					
					
						 

					
					
						92.7

					
					
						  

				
	
					
						64.............................................................................................

					
					
						  

					
					
						 

					
					
						86.9

					
					
						  

					
					
						 

					
					
						 

					
					
						90.9

					
					
						  

					
					
						 

					
					
						 

					
					
						93.0

					
					
						  

				
	
					
						65.............................................................................................

					
					
						  

					
					
						 

					
					
						87.5

					
					
						  

					
					
						 

					
					
						 

					
					
						91.3

					
					
						  

					
					
						 

					
					
						 

					
					
						93.3

					
					
						  

				
	
					
						66.............................................................................................

					
					
						  

					
					
						 

					
					
						88.0

					
					
						  

					
					
						 

					
					
						 

					
					
						91.7

					
					
						  

					
					
						 

					
					
						 

					
					
						93.6

					
					
						  

				
	
					
						67.............................................................................................

					
					
						  

					
					
						 

					
					
						88.6

					
					
						  

					
					
						 

					
					
						 

					
					
						92.1

					
					
						  

					
					
						 

					
					
						 

					
					
						93.9

					
					
						  

				
	
					
						68.............................................................................................

					
					
						  

					
					
						 

					
					
						89.1

					
					
						  

					
					
						 

					
					
						 

					
					
						92.5

					
					
						  

					
					
						 

					
					
						 

					
					
						94.2

					
					
						  

				
	
					
						69.............................................................................................

					
					
						  

					
					
						 

					
					
						89.6

					
					
						  

					
					
						 

					
					
						 

					
					
						92.9

					
					
						  

					
					
						 

					
					
						 

					
					
						94.5

					
					
						  

				
	
					
						70.............................................................................................

					
					
						  

					
					
						 

					
					
						90.2

					
					
						  

					
					
						 

					
					
						 

					
					
						93.2

					
					
						  

					
					
						 

					
					
						 

					
					
						94.8

					
					
						  

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						  

					
					
						 
 
  

					
						 

					
						 

					
					
						1983 Group Annuity Table with Projection H, with
mortality rates based on calendar year of  birth
of 1930 and interest at the rate of 7% per annum. 

					
						 

					
						Life Ann/Opt.

					
					
						  
  
   

					
						 

					
						  

				

		
			 
		

		

		

		 

		

			20

		

		

			 

		

 

		
		

		
			ANNUITY OPTION ADJUSTMENT PERCENTAGES 
		

		
			Percentages to be applied to the monthly benefit which would be payable to the Participant on his Retirement Date if no Optional Form of Annuity were in effect to determine the monthly income benefit commencing on the Participant’s Retirement Date if one of the following options is in effect. 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Age nearest birthday on

					
						the date monthly

					
						income commences

					
					
						  

					
					
						Annuity Option

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						  

					
					
						5C&C

					
					
						 

					
					
						 

					
					
						10C&C

					
					
						 

					
					
						 

					
					
						15C&C

					
					
						 

					
					
						 

					
					
						20C&C

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						50.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.8

					
					
						% 

					
					
						 

					
					
						 

					
					
						99.2

					
					
						% 

					
					
						 

					
					
						 

					
					
						98.3

					
					
						% 

					
					
						 

					
					
						 

					
					
						97.2

					
					
						% 

				
	
					
						51.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.8

					
					
						  

					
					
						 

					
					
						 

					
					
						99.1

					
					
						  

					
					
						 

					
					
						 

					
					
						98.1

					
					
						  

					
					
						 

					
					
						 

					
					
						96.9

					
					
						  

				
	
					
						52.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.7

					
					
						  

					
					
						 

					
					
						 

					
					
						99.0

					
					
						  

					
					
						 

					
					
						 

					
					
						97.9

					
					
						  

					
					
						 

					
					
						 

					
					
						96.6

					
					
						  

				
	
					
						53.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.7

					
					
						  

					
					
						 

					
					
						 

					
					
						98.9

					
					
						  

					
					
						 

					
					
						 

					
					
						97.7

					
					
						  

					
					
						 

					
					
						 

					
					
						96.3

					
					
						  

				
	
					
						54.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.7

					
					
						  

					
					
						 

					
					
						 

					
					
						98.8

					
					
						  

					
					
						 

					
					
						 

					
					
						97.5

					
					
						  

					
					
						 

					
					
						 

					
					
						96.0

					
					
						  

				
	
					
						55.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.6

					
					
						  

					
					
						 

					
					
						 

					
					
						98.6

					
					
						  

					
					
						 

					
					
						 

					
					
						97.3

					
					
						  

					
					
						 

					
					
						 

					
					
						95.6

					
					
						  

				
	
					
						56.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.6

					
					
						  

					
					
						 

					
					
						 

					
					
						98.5

					
					
						  

					
					
						 

					
					
						 

					
					
						97.0

					
					
						  

					
					
						 

					
					
						 

					
					
						95.2

					
					
						  

				
	
					
						57.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.6

					
					
						  

					
					
						 

					
					
						 

					
					
						98.4

					
					
						  

					
					
						 

					
					
						 

					
					
						96.8

					
					
						  

					
					
						 

					
					
						 

					
					
						94.8

					
					
						  

				
	
					
						58.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.5

					
					
						  

					
					
						 

					
					
						 

					
					
						98.3

					
					
						  

					
					
						 

					
					
						 

					
					
						96.5

					
					
						  

					
					
						 

					
					
						 

					
					
						94.3

					
					
						  

				
	
					
						59.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.5

					
					
						  

					
					
						 

					
					
						 

					
					
						98.1

					
					
						  

					
					
						 

					
					
						 

					
					
						96.2

					
					
						  

					
					
						 

					
					
						 

					
					
						93.8

					
					
						  

				
	
					
						60.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.4

					
					
						  

					
					
						 

					
					
						 

					
					
						98.0

					
					
						  

					
					
						 

					
					
						 

					
					
						95.9

					
					
						  

					
					
						 

					
					
						 

					
					
						93.3

					
					
						  

				
	
					
						61.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.4

					
					
						  

					
					
						 

					
					
						 

					
					
						97.8

					
					
						  

					
					
						 

					
					
						 

					
					
						95.5

					
					
						  

					
					
						 

					
					
						 

					
					
						92.7

					
					
						  

				
	
					
						62.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.3

					
					
						  

					
					
						 

					
					
						 

					
					
						97.6

					
					
						  

					
					
						 

					
					
						 

					
					
						95.0

					
					
						  

					
					
						 

					
					
						 

					
					
						92.0

					
					
						  

				
	
					
						63.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.3

					
					
						  

					
					
						 

					
					
						 

					
					
						97.3

					
					
						  

					
					
						 

					
					
						 

					
					
						94.5

					
					
						  

					
					
						 

					
					
						 

					
					
						91.2

					
					
						  

				
	
					
						64.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.2

					
					
						  

					
					
						 

					
					
						 

					
					
						97.1

					
					
						  

					
					
						 

					
					
						 

					
					
						94.0

					
					
						  

					
					
						 

					
					
						 

					
					
						90.4

					
					
						  

				
	
					
						65.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.1

					
					
						  

					
					
						 

					
					
						 

					
					
						96.7

					
					
						  

					
					
						 

					
					
						 

					
					
						93.3

					
					
						  

					
					
						 

					
					
						 

					
					
						89.5

					
					
						  

				
	
					
						66.............................................................................................................

					
					
						  

					
					
						 

					
					
						99.0

					
					
						  

					
					
						 

					
					
						 

					
					
						96.4

					
					
						  

					
					
						 

					
					
						 

					
					
						92.6

					
					
						  

					
					
						 

					
					
						 

					
					
						88.5

					
					
						  

				
	
					
						67.............................................................................................................

					
					
						  

					
					
						 

					
					
						98.9

					
					
						  

					
					
						 

					
					
						 

					
					
						95.9

					
					
						  

					
					
						 

					
					
						 

					
					
						91.8

					
					
						  

					
					
						 

					
					
						 

					
					
						87.4

					
					
						  

				
	
					
						68.............................................................................................................

					
					
						  

					
					
						 

					
					
						98.8

					
					
						  

					
					
						 

					
					
						 

					
					
						95.4

					
					
						  

					
					
						 

					
					
						 

					
					
						91.0

					
					
						  

					
					
						 

					
					
						 

					
					
						86.2

					
					
						  

				
	
					
						69.............................................................................................................

					
					
						  

					
					
						 

					
					
						98.6

					
					
						  

					
					
						 

					
					
						 

					
					
						94.9

					
					
						  

					
					
						 

					
					
						 

					
					
						90.0

					
					
						  

					
					
						 

					
					
						 

					
					
						84.9

					
					
						  

				
	
					
						70.............................................................................................................

					
					
						  

					
					
						 

					
					
						98.4

					
					
						  

					
					
						 

					
					
						 

					
					
						94.3

					
					
						  

					
					
						 

					
					
						 

					
					
						89.0

					
					
						  

					
					
						 

					
					
						 

					
					
						83.5

					
					
						  

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						  

					
					
						 
 
 
  

					
						 

					
						 

					
					
						1983 Group Annuity Table with Projection H,
with mortality rates based on calendar
year of birth of 1930 and interest at the
rate of 7% per annum. 

					
						 

					
						Life Ann/Opt.

					
					
						  
  
  
   

					
						 

					
						  

				

		
			 
		

		

		

		 

		

			21

		

		

			 

		

 

		
		

		
			LATE RETIREMENT PERCENTAGES 
		

		
			(Applicable only if the Participant’s age, nearest birthday, on the date his or her Normal Retirement Date is 65). 
		

		
			The following percentages are applied to retirement benefits determined in accordance with Part II of the Plan prior to any actuarial increase with respect to a Participant whose date of retirement is subsequent to his or her Normal Retirement Date, to determine actuarially increased retirement benefits commencing on his or her Late Retirement Date. If benefits commence in a month other than the month in which the Participant attains the specified age, the percentage shall be determined by straight line interpolation. Percentages for Late Retirement Dates and ages not illustrated will be computed on an actuarial basis consistent with that used to compute the factors shown. 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Number of Years Late

					
						Retirement Date Succeeds

					
						Normal Retirement  Date

					
					
						 

					
					
						Actuarial Increase

					
						Percentage

				
	
					
						1.......................................................................................................

					
					
						 

					
					
						111.3%

				
	
					
						2.......................................................................................................

					
					
						 

					
					
						124.3%

				
	
					
						3.......................................................................................................

					
					
						 

					
					
						139.2%

				
	
					
						4.......................................................................................................

					
					
						 

					
					
						156.6%

				
	
					
						5.......................................................................................................

					
					
						 

					
					
						176.8%

				
	
					
						6.......................................................................................................

					
					
						 

					
					
						200.4%

				
	
					
						7.......................................................................................................

					
					
						 

					
					
						228.3%

				
	
					
						8.......................................................................................................

					
					
						 

					
					
						261.5%

				
	
					
						9.......................................................................................................

					
					
						 

					
					
						301.1%

				
	
					
						10.......................................................................................................

					
					
						 

					
					
						348.8%

				

		
			 
		

		
			The actuarial basis increase percentages beyond ten years after Normal Retirement Date shall be determined based on the 1951 Group Annuity Table with 2/3 of Projection C, with mortality rates based on calendar year of birth of 1910 and interest at a rate of 6% per annum (male rate). 
		

		
			Notwithstanding the foregoing, if late retirement benefits commence after Age 70 1/2, a Participant’s Accrued Benefit shall be actuarially increased to take into account the period after Age 70 1/2 in which the Participant was not receiving any benefits under Part II of the Plan. Any such actuarial increase shall be the greater of (i) the actuarial increase determined in accordance with the rules described above or (ii) such actuarial increase as shall be required under Code Section 401(a)(9)(C) and rules and regulations promulgated thereunder. 
		

		

		

		 

		

			22

		

		

			 

		

 

		
		

		
			Exhibit B 
		

		
			This page is intentionally left blank. 
		

		
			 
		

		

		

		 

		

			23

		

		

			 

		

 

		
		

		
			This page is intentionally left blank. 
		

		

		

		 

		

			24

		

		

			 

		

 

		
		

		
			 
		

		
			THE HANOVER INSURANCE GROUP CASH BALANCE 
		

		
			PENSION PLAN 
		

		
			PART III 
		

		
			(As amended and restated generally effective January 1, 2010) 
		

		
			 
		

		

		

		 

		

			 

		

		

			 

		

 

		THE HANOVER INSURANCE GROUP CASH BALANCE 
		

		
			PENSION PLAN 
		

		
			PART III 
		

		
			TABLE OF CONTENTS 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						    

					
					
						 

					
					
						  

					
					
						PAGE

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						ARTICLE I        PURPOSE AND EFFECTIVE DATE OF PLAN

					
					
						  

					
					
						 

					
1 
					
					
						  

				
	
					
						1.01

					
					
						    

					
					
						General Statement.

					
					
						  

					
					
						 

					
1 
					
					
						  

				
	
					
						1.02

					
					
						    

					
					
						Effective Date.

					
					
						  

					
					
						 

					
1 
					
					
						  

				
	
					
						ARTICLE II       PROVISIONS APPLICABLE TO TOP HEAVY PLANS

					
					
						  

					
					
						 

					
1 
					
					
						  

				
	
					
						2.01

					
					
						    

					
					
						Top Heavy Plan Requirements.

					
					
						  

					
					
						 

					
1 
					
					
						  

				
	
					
						2.02

					
					
						    

					
					
						Determination of Top Heavy Status.

					
					
						  

					
					
						 

					
1 
					
					
						  

				
	
					
						2.03

					
					
						    

					
					
						Minimum Benefit Requirements for Top Heavy Plans.

					
					
						  

					
					
						 

					
3 
					
					
						  

				
	
					
						ARTICLE III      MINIMUM DISTRIBUTION REQUIREMENTS

					
					
						  

					
					
						 

					
4 
					
					
						  

				
	
					
						3.01

					
					
						    

					
					
						General Rules.

					
					
						  

					
					
						 

					
4 
					
					
						  

				
	
					
						3.02

					
					
						    

					
					
						Time and Manner of Distribution.

					
					
						  

					
					
						 

					
5 
					
					
						  

				
	
					
						3.03

					
					
						    

					
					
						Determination of Amount to be Distributed Each Year.

					
					
						  

					
					
						 

					
5 
					
					
						  

				
	
					
						3.04

					
					
						    

					
					
						Requirements for Annuity Distributions That Commence During Participant’s Lifetime.

					
					
						  

					
					
						 

					
7 
					
					
						  

				
	
					
						3.05

					
					
						    

					
					
						Requirements for Minimum Distributions Where Participant Dies Before Date Distributions Begin.

					
					
						  

					
					
						 

					
8 
					
					
						  

				
	
					
						3.06

					
					
						    

					
					
						Definitions.

					
					
						  

					
					
						 

					
8 
					
					
						  

				
	
					
						ARTICLE IV      LIMITATIONS ON BENEFITS

					
					
						  

					
					
						 

					
9 
					
					
						  

				
	
					
						4.01

					
					
						    

					
					
						General Limitations.

					
					
						  

					
					
						 

					
9 
					
					
						  

				
	
					
						4.02

					
					
						    

					
					
						Additional General Limitations.

					
					
						  

					
					
						 

					
9 
					
					
						  

				
	
					
						4.03

					
					
						    

					
					
						Limitation Year beginning after December 31, 1986.

					
					
						  

					
					
						 

					
10 
					
					
						  

				
	
					
						4.04

					
					
						    

					
					
						Limitation Year beginning after December 31, 1994.

					
					
						  

					
					
						 

					
10 
					
					
						  

				
	
					
						4.05

					
					
						    

					
					
						Definitions.

					
					
						  

					
					
						 

					
10 
					
					
						  

				
	
					
						4.06

					
					
						    

					
					
						Final Section 415 Regulations.

					
					
						  

					
					
						 

					
14 
					
					
						  

				
	
					
						ARTICLE V       PRE-TERMINATION BENEFIT RESTRICTIONS

					
					
						  

					
					
						 

					
15 
					
					
						  

				
	
					
						5.01

					
					
						    

					
					
						In General.

					
					
						  

					
					
						 

					
15 
					
					
						  

				
	
					
						5.02

					
					
						    

					
					
						Exceptions.

					
					
						  

					
					
						 

					
15 
					
					
						  

				
	
					
						5.03

					
					
						    

					
					
						Included Benefits.

					
					
						  

					
					
						 

					
15 
					
					
						  

				

		

		

		 

		

			 

		

		

			 

		

 

		 
		

			
					
						ARTICLE VI      BENEFIT RESTRICTIONS

					
					
						  

					
					
						 

					
16 
					
					
						  

				
	
					
						6.01

					
					
						    

					
					
						Effective Date and Application of Section.

					
					
						  

					
					
						 

					
16 
					
					
						  

				
	
					
						6.02

					
					
						    

					
					
						Funding-Based Limitation on Shutdown Benefits and Other Unpredictable Contingent Event Benefits.

					
					
						  

					
					
						 

					
16 
					
					
						  

				
	
					
						6.03

					
					
						    

					
					
						Limitations on Plan Amendments Increasing Liability for Benefits.

					
					
						  

					
					
						 

					
16 
					
					
						  

				
	
					
						6.04

					
					
						    

					
					
						Limitations on Accelerated Benefit Distributions.

					
					
						  

					
					
						 

					
16 
					
					
						  

				
	
					
						6.05

					
					
						    

					
					
						Limitation on Benefit Accruals for Plans With Severe Funding Shortfalls.

					
					
						  

					
					
						 

					
17 
					
					
						  

				
	
					
						6.06

					
					
						    

					
					
						Rules Relating to Contributions Required to Avoid Benefit Limitations.

					
					
						  

					
					
						 

					
18 
					
					
						  

				
	
					
						6.07

					
					
						    

					
					
						Presumed Underfunding for Purposes of Benefit Limitations.

					
					
						  

					
					
						 

					
18 
					
					
						  

				
	
					
						6.08

					
					
						    

					
					
						Treatment of Plan as of Close of Prohibited or Cessation Period.

					
					
						  

					
					
						 

					
19 
					
					
						  

				
	
					
						6.09

					
					
						    

					
					
						Definitions.

					
					
						  

					
					
						 

					
19 
					
					
						  

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE VII        PLAN FIDUCIARY RESPONSIBILITIES

					
					
						  

					
					
						 

					
20 
					
					
						  

				
	
					
						7.01

					
					
						    

					
					
						Plan Fiduciaries.

					
					
						  

					
					
						 

					
20 
					
					
						  

				
	
					
						7.02

					
					
						    

					
					
						General Fiduciary Duties.

					
					
						  

					
					
						 

					
20 
					
					
						  

				
	
					
						7.03

					
					
						    

					
					
						Duties of the Trustee(s).

					
					
						  

					
					
						 

					
20 
					
					
						  

				
	
					
						7.04

					
					
						    

					
					
						Powers and Duties of the Plan Administrator.

					
					
						  

					
					
						 

					
20 
					
					
						  

				
	
					
						7.05

					
					
						    

					
					
						Designation of Fiduciaries.

					
					
						  

					
					
						 

					
21 
					
					
						  

				
	
					
						7.06

					
					
						    

					
					
						Delegation of Duties by a Fiduciary.

					
					
						  

					
					
						 

					
22 
					
					
						  

				
	
					
						ARTICLE VIII      BENEFITS COMMITTEE

					
					
						  

					
					
						 

					
22 
					
					
						  

				
	
					
						8.01

					
					
						    

					
					
						Appointment of Benefits Committee.

					
					
						  

					
					
						 

					
22 
					
					
						  

				
	
					
						8.02

					
					
						    

					
					
						Benefits Committee to Act by Majority Vote, etc.

					
					
						  

					
					
						 

					
22 
					
					
						  

				
	
					
						8.03

					
					
						    

					
					
						Records and Reports of the Benefits Committee.

					
					
						  

					
					
						 

					
22 
					
					
						  

				
	
					
						8.04

					
					
						    

					
					
						Costs and Expenses of Administration.

					
					
						  

					
					
						 

					
22 
					
					
						  

				
	
					
						8.05

					
					
						    

					
					
						Indemnification of the Plan Administrator and Assistants.

					
					
						  

					
					
						 

					
22 
					
					
						  

				
	
					
						ARTICLE IX        CLAIMS PROCEDURE

					
					
						  

					
					
						 

					
22 
					
					
						  

				
	
					
						9.01

					
					
						    

					
					
						Claims Fiduciary.

					
					
						  

					
					
						 

					
22 
					
					
						  

				
	
					
						9.02

					
					
						    

					
					
						Claims for Benefits.

					
					
						  

					
					
						 

					
22 
					
					
						  

				
	
					
						9.03

					
					
						    

					
					
						Duty to Keep Plan Administrator Informed of Current Address.

					
					
						  

					
					
						 

					
23 
					
					
						  

				

		 

		

			 

		

		

			 

		

 

			
					
						9.04

					
					
						    

					
					
						Failure to Claim Benefits.

					
					
						  

					
					
						 

					
23 
					
					
						  

				
	
					
						9.05

					
					
						    

					
					
						Notice of Denial of Claim.

					
					
						  

					
					
						 

					
23 
					
					
						  

				
	
					
						9.06

					
					
						    

					
					
						Request for Review of Denial of Claim.

					
					
						  

					
					
						 

					
23 
					
					
						  

				
	
					
						9.07

					
					
						    

					
					
						Decision on Review of Denial of Claim.

					
					
						  

					
					
						 

					
23 
					
					
						  

				
	
					
						9.08

					
					
						    

					
					
						Disability Claims.

					
					
						  

					
					
						 

					
23 
					
					
						  

				
	
					
						ARTICLE X         AMENDMENT AND TERMINATION

					
					
						  

					
					
						 

					
24 
					
					
						  

				
	
					
						10.01

					
					
						    

					
					
						Amendment of Plan.

					
					
						  

					
					
						 

					
24 
					
					
						  

				
	
					
						10.02

					
					
						    

					
					
						Employer May Discontinue Plan.

					
					
						  

					
					
						 

					
24 
					
					
						  

				
	
					
						10.03

					
					
						    

					
					
						Distribution of Benefits Upon Plan Termination.

					
					
						  

					
					
						 

					
25 
					
					
						  

				
	
					
						10.04

					
					
						    

					
					
						Return of Employer Contributions Under Special Circumstances.

					
					
						  

					
					
						 

					
25 
					
					
						  

				
	
					
						ARTICLE XI        MISCELLANEOUS

					
					
						  

					
					
						 

					
25 
					
					
						  

				
	
					
						11.01

					
					
						    

					
					
						Protection of Employee Interest.

					
					
						  

					
					
						 

					
25 
					
					
						  

				
	
					
						11.02

					
					
						    

					
					
						USERRA Compliance.

					
					
						  

					
					
						 

					
25 
					
					
						  

				
	
					
						11.03

					
					
						    

					
					
						Meaning of Words Used in Plan.

					
					
						  

					
					
						 

					
26 
					
					
						  

				
	
					
						11.04

					
					
						    

					
					
						Plan Does Not Create or Modify Employment Rights.

					
					
						  

					
					
						 

					
26 
					
					
						  

				
	
					
						11.05

					
					
						    

					
					
						Massachusetts Law Controls.

					
					
						  

					
					
						 

					
26 
					
					
						  

				
	
					
						11.06

					
					
						    

					
					
						Payments to come from Plan Assets.

					
					
						  

					
					
						 

					
26 
					
					
						  

				
	
					
						11.07

					
					
						    

					
					
						Receipt and Release for Payments.

					
					
						  

					
					
						 

					
26 
					
					
						  

				
	
					
						11.08

					
					
						    

					
					
						Mandatory Withholding on Eligible Rollover Distributions.

					
					
						  

					
					
						 

					
26 
					
					
						  

				
	
					
						11.09

					
					
						    

					
					
						Payment under Qualified Domestic Relations Orders.

					
					
						  

					
					
						 

					
26 
					
					
						  

				
	
					
						11.10

					
					
						    

					
					
						Electronic Communications.

					
					
						  

					
					
						 

					
27 
					
					
						  

				

		
			 
		

		

		

		 

		

			 

		

		

			 

		

 

		
		

		
			 
		

		
			ARTICLE I 
		

		
			PURPOSE AND EFFECTIVE DATE OF PLAN 
		

		
			1.01    General Statement. The Hanover Insurance Group Cash Balance Pension Plan (the “Plan”) consists of three parts, Part I, Part II and Part III. Part I of the Plan provides a cash balance and pension benefit, which was formerly provided under a plan known as “The Allmerica Financial Cash Balance Pension Plan”. Part II of the Plan provides a pension benefit, which was formerly provided under a plan known as “The Allmerica Financial Agents’ Pension Plan”. Part III of the Plan contains provisions applicable to each of Part I and Part II. 
		

		
			The provisions of Part III of the Plan shall override any provision of Part I and or Part II of the Plan as provided in Part III of the Plan. 
		

		
			The words and phrases used in this Part III of the Plan shall have the meanings set forth in Part I of the Plan, unless a different meaning is clearly required by the context or is otherwise provided in Part III of the Plan. 
		

		
			1.02   Effective Date. The effective date of Part III of the Plan is January 1, 2010 (except for those provisions of this Part of the Plan which have an expressly stated alternative effective date). 
		

		
			ARTICLE II 
		

		
			PROVISIONS APPLICABLE TO TOP HEAVY PLANS 
		

		
			2.01   Top Heavy Plan Requirements.  
		

		
			(a)For any Top Heavy Plan Year, the Plan shall provide the following: 
		

		
			(i) the minimum vesting requirements for Top Heavy Plans set forth in Section 8.02 of Part I of the Plan and Section 7.02 of Part II of the Plan; and 
		

		
			(ii) the minimum benefit accruals for Non-Key Employees set forth in Section 2.03 below. 
		

		
			(b)Once the Plan has become a Top Heavy Plan, the top heavy vesting requirements described in 8.02 of Part I of the Plan and Section 7.02 of Part II of the Plan shall be applicable to all subsequent Plan Years, regardless of whether such years are Top Heavy Plan Years. 
		

		
			(c)If the Plan is or becomes a Top Heavy Plan, the provisions of this Article II will supersede any conflicting provision in the Plan. 
		

		
			(d)In determining Top Heavy Plan vesting, the Top Heavy vesting schedule set forth in 8.02 of Part I of the Plan and in Section 7.02 of Part II of the Plan applies to all benefits within the meaning of Code Section 411(a)(7), including benefits accrued before the effective date of Code Section 416 and benefits accrued before the Plan became top-heavy. Further, no reduction in vested benefits may occur in the event the Plan’s status as top heavy changes for any Plan Year. However, this Section does not apply to the Accrued Benefits of any Employee who does not have an Hour of Service after the Plan has initially become top-heavy and such Employee’s Accrued Benefits attributable to Employer contributions will be determined without regard to this Section. 
		

		
			2.02       Determination of Top Heavy Status.  
		

		
			(a)This Plan shall be a Top Heavy Plan for any Plan Year commencing after December 31, 1983 if any of the following conditions exists: 
		

		
			(i) If the top heavy ratio for this Plan exceeds 60 percent and this Plan is not part of any required aggregation group or permissive aggregation group of plans. 
		

		
			(ii) If this Plan is a part of a required aggregation group of plans (but not part of a permissive aggregation group) and the top heavy ratio for the group of plans exceeds 60 percent. 
		

		
			(iii) If this Plan is a part of a required aggregation group and part of a permissive aggregation group of plans and the top heavy ratio for the permissive aggregation group exceeds 60 percent. 
		

		

		

		 

		

			1

		

		

			 

		

 

		
		

		
			(b)The Plan top heavy ratio shall be determined as follows: 
		

		
			(i)       If the Employer maintains one or more defined benefit plans and the employer has not maintained any defined contribution plan (including any simplified employee pension, as defined in section 408(k) of the Internal Revenue Code) which during the 5-year period ending on the determination date(s) has or has had account balances, the top-heavy ratio for this plan alone or for the required or permissive aggregation group as appropriate is a fraction, the numerator of which is the sum of the present value of Accrued Benefits of all Key Employees as of the determination date(s) (including any part of any Accrued Benefit distributed in the 1-year period ending on the determination date(s)) (5-year period ending on the determination date in the case of a distribution made for a reason other than severance from employment, death or disability), and the denominator of which is the sum of the present value of Accrued Benefits (including any part of any Accrued Benefits distributed in the 1-year period ending on the determination date(s)) (5-year period ending on the determination date in the case of a distribution made for a reason other than severance from employment, death or disability), determined in accordance with section 416 of the Internal Revenue Code and the regulations thereunder. 
		

		
			 
		

		
			(ii)      If the Employer maintains one or more defined benefit plans and the employer maintains or has maintained one or more defined contribution plans (including any simplified employee pension) which during the 5-year period ending on the determination date(s) has or has had any account balances, the top-heavy ratio for any required or permissive aggregation group as appropriate is a fraction, the numerator of which is the sum of the present value of accrued benefits under the aggregated defined benefit plan or plans for all Key Employees, determined in accordance with (i) above, and the sum of account balances under the aggregated defined contribution plan or plans for all Key Employees as of the determination date(s), and the denominator of which is the sum of the present value of accrued benefits under the defined benefit plan or plans for all participants, determined in accordance with (i) above, and the account balances under the aggregated defined contribution plan or plans for all participants as of the determination date(s), all determined in accordance with section 416 of the Internal Revenue Code and the regulations thereunder. The account balances under a defined contribution in both the numerator and denominator of the top heavy ratio are increased for any distribution of an account balance made in the 1-year period ending on the determination date (5-year period ending on the determination date in the case of a distribution made for a reason other than severance from employment, death or disability). 
		

		
			(iii)      For purposes of (i) and (ii) above, the value of account balances and the present value of Accrued Benefits will be determined as of the most recent valuation date that falls within or ends with the 12-month period ending on the determination date, except as provided in Code Section 416 and the regulations thereunder for the first and second plan years of a defined benefit plan. The account balances and accrued benefits of a Participant (1) who is not a Key Employee but who was a Key Employee in a prior year, or (2) who has not been credited with at least one Hour of Service with any employer maintaining the Plan at any time during the 1-year period ending on the determination date will be disregarded. The calculation of the top-heavy ratio and the extent to which distributions, rollovers, and transfers are taken into account will be made in accordance with Code Section 416 and the regulations thereunder. Deductible employee contributions will not be taken into account for purposes of computing the top-heavy ratio. When aggregating plans, the value of account balances and Accrued Benefits will be calculated with reference to the determination dates that fall within the same calendar year. 
		

		
			The Accrued Benefit of a Participant other than a Key Employee shall be determined under (A) the method, if any, that uniformly applies for accrual purposes under all defined benefit plans maintained by the Employer, or (B) if there is no such method, as if such benefit accrued not more rapidly than the slowest accrual rate permitted under the fractional rule of Section Code 411(b)(1)(C). 
		

		
			(c)Permissive aggregation group: The required aggregation group of plans plus any other plan or plans of the Employer which, when considered as a group with the required aggregation group, would continue to satisfy the requirements of Code Sections 401(a)(4) and 410. 
		

		
			 
		

		
			(d)Required aggregation group: (i) Each qualified plan of the Employer in which at least one Key Employee participates or participated at any time during the determination period (regardless of whether the Plan has terminated), and (ii) any other qualified plan of the Employer which enables a plan described in (i) to meet the requirements of Code Sections 401(a)(4) or 410. 
		

		
			(e)Determination date: The last day of the preceding Plan Year. 
		

		
			(f)Valuation Date: The last day of each Plan Year, as of which Accrued Benefits are valued for purposes of calculating the top heavy ratio. 
		

		
			(g)Present value: Present value shall be based on the interest and mortality rates specified in the definition of Actuarial Equivalent. 
		

		

		

		 

		

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		2.03    Minimum Benefit Requirements for Top Heavy Plans. 
		

		
			(a)Minimum Benefit Requirements for Top Heavy Plans. 
		

		
			Notwithstanding any other provision in this Plan except Subsections (b) and (c) below, for any Plan Year in which this Plan is a Top Heavy Plan, each Participant who is not a Key Employee and has completed at least 1,000 Hours of Service will accrue a benefit (to be provided solely by Employer contributions and expressed as a life annuity commencing at Normal Retirement Age) of not less than 2% of the Participant’s highest average Compensation for the five consecutive years in which such Non-Key Employee had the highest Compensation (as defined for purposes of Article III of Part III of the Plan). The aggregate Compensation for the years during such five-year period in which the Participant was credited with a Year of Service will be divided by the number of such years in order to determine average annual Compensation. 
		

		
			 
		

		
			Provided,  however, that no additional benefit accruals shall be provided pursuant to this Section to the extent that the total accruals on behalf of the Participant attributable to Employer contributions will provide a benefit expressed as a life annuity commencing at Normal Retirement Age that equals or exceeds 20% of the Participant’s average Compensation for the five consecutive years in which the Participant had the highest Compensation (as defined for purposes of Article III of Part III of the Plan). All accruals of Employer-derived benefits, whether or not attributable to years for which the Plan is Top Heavy, may be used in computing whether the minimum 20% accrual requirements of this paragraph are satisfied. 
		

		
			The minimum accrual above applies even though under other Plan provisions the Participant would not otherwise be entitled to receive an accrual, or would have received a lesser accrual for the Plan Year because (i) the Non-Key Employee fails to make mandatory contributions to the Plan, (ii) the Non-Key Employee’s Compensation is less than a stated amount, (iii) the Non-Key Employee is not employed on the last day of the accrual computation period, or (iv) the Plan is integrated with Social Security. 
		

		
			 
		

		
			The Compensation required to be taken into account under this Section is Compensation as defined for purposes of Article III of Part III of the Plan that is not in excess of the applicable dollar limitation imposed by Code Section 401(a)(17). However, Compensation received by a Non-Key Employee for Plan Years beginning after the close of the last year in which the Plan was a Top Heavy Plan shall be disregarded. The minimum accrual determined under this Section shall be determined without regard to any Social Security contribution. 
		

		
			The top-heavy minimum benefit is a life annuity benefit (with no ancillary benefits) commencing at Normal Retirement Age. If the benefit commences at a date other than Normal Retirement Age, the Employee must receive at least an amount that is the Actuarial Equivalent of the minimum single life annuity benefit commencing at Normal Retirement Age. 
		

		
			Notwithstanding the foregoing, for Plan Years beginning after December 31, 2001, for purposes of satisfying the minimum benefit requirements of Code Section 416(c)(1) and the Plan, in determining Years of Service with the Employer, any service with the Employer shall be disregarded to the extent that such service occurs during a Plan Year when the Plan benefits (within the meaning of Code Section 410(b)) no Key Employee or former Key Employee. 
		

		
			(b)Notwithstanding anything herein to the contrary, in any Plan Year in which a Non-Key Employee participates in both a defined benefit plan and a defined contribution plan included in a Required or Permissive Aggregation Group of Top Heavy Plans, the Employer is not required to provide the Non-Key Employee with both the full and separate minimum benefit and the full and separate minimum contribution. Therefore, if the Employer maintains such a defined benefit and defined contribution plan, the top-heavy minimum benefits shall be provided as follows: 
		

		
			(i) If a Non-Key Employee is a participant in any such Top Heavy defined contribution plan, the minimum benefit described in Subsection (a) above shall not be provided to each such Non-Key Employee who receives at least the full Top Heavy minimum contribution provided in such defined contribution plan for Non-Key Employee participants. 
		

		
			(ii) If a Non-Key Employee is not a Participant in any such Top Heavy defined contribution plan, the minimum and extra minimum benefits, if applicable, described in Subsection (a) shall be provided to each such Non-Key Employee meeting the requirements of Section 2.03(a) above. 
		

		
			Notwithstanding any provision herein to the contrary, no minimum benefit will be required (or the minimum benefit will be reduced, as the case may be) for a Participant under this Plan for any Plan Year if the Employer maintains another qualified defined benefit plan under which a minimum benefit is being accrued in whole or in part for the Participant in accordance with Code Section 416(c). 
		

		
			 
		

		
			(c)The minimum accrued benefit described in this Section (to the extent required to be nonforfeitable under Code Section 416(b)) may not be forfeited under Code Sections 411(a)(3)(B) or 411(a)(3)(D). 
		

		

		

		 

		

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		ARTICLE III 
		

		
			MINIMUM DISTRIBUTION REQUIREMENTS 
		

		
			3.01   General Rules.  
		

		
			(a)Effective date. The provisions of this Article will apply with respect to distributions under the Plan made for calendar years beginning on or after January 1, 2006. With respect to distributions under the Plan made for calendar years beginning on or after January 1, 2002 and prior to the effective date of the application of the Treasury Regulations under Code Section 401(a)(9) that were finalized on June 15, 2004, the Plan will use the 1987 proposed regulations. 
		

		
			(b)Requirements of Treasury Regulations incorporated. All distributions required under this Article shall be determined and made in accordance with Code Section 401(a)(9), including the incidental death benefit requirement in Code Section 401(a)(9)(G), and the Treasury Regulations thereunder. 
		

		
			(c)Precedence. Subject to the joint and survivor annuity requirements of the Plan, the requirements of this Article will take precedence over any inconsistent provisions of the Plan. 
		

		
			(d)TEFRA Section 242(b)(2) elections. 
		

		
			(i) Notwithstanding the other provisions of this Article and the Plan, other than the spouse’s right of consent afforded under the Plan, distributions may be made on behalf of any Participant, including a five percent (5%) owner, who has made a designation in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (“TEFRA”) and in accordance with all of the following requirements (regardless of when such distribution commences): 
		

		
			(1)The distribution by the Plan is one which would not have disqualified such plan under Code Section 401(a)(9) as in effect prior to amendment by the Deficit Reduction Act of 1984. 
		

		
			(2)The distribution is in accordance with a method of distribution designated by the Participant whose interest in the plan is being distributed or, if the Participant is deceased, by a beneficiary of such Participant. 
		

		
			 
		

		
			(3)Such designation was in writing, was signed by the Participant or beneficiary, and was made before January 1, 1984. 
		

		
			(4)The Participant had accrued a benefit under the Plan as of December 31, 1983. 
		

		
			(5)The method of distribution designated by the Participant or the beneficiary specifies the time at which distribution will commence, the period over which distributions will be made, and in the case of any distribution upon the Participant’s death, the beneficiaries of the Participant listed in order of priority. 
		

		
			(ii)      A distribution upon death will not be covered by the transitional rule of this Subsection unless the information in the designation contains the required information described above with respect to the distributions to be made upon the death of the Participant. 
		

		
			(iii)      For any distribution which commences before January 1, 1984, but continues after December 31, 1983, the Participant, or the beneficiary, to whom such distribution is being made, will be presumed to have designated the method of distribution under which the distribution is being made if the method of distribution was specified in writing and the distribution satisfies the requirements in (i)(1) and (i)(5) of this Subsection. 
		

		
			(iv)      If a designation is revoked, any subsequent distribution must satisfy the requirements of Code Section 401(a)(9) and the Treasury Regulations thereunder. If a designation is revoked subsequent to the date distributions are required to begin, the Plan must distribute by the end of the calendar year following the calendar year in which the revocation occurs the total amount not yet distributed which would have been required to have been distributed to satisfy Code Section 401(a)(9) and the regulations thereunder, but for the Section 242(b)(2) election. For calendar years beginning after December 31, 1988, such distributions must meet the minimum distribution incidental benefit requirements. Any changes in the designation will be considered to be a revocation of the designation. However, the mere substitution or addition of another beneficiary (one not named in the designation) under the designation will not be considered to be a revocation of the designation, so long as such substitution or addition does not alter the period over which distributions are to be made under the designation, directly or indirectly (for example, by altering the relevant measuring life). 
		

		
			(v)      In the case in which an amount is transferred or rolled over from one plan to another plan, the rules in Treasury Regulation Section 1.401(a)(9)-8, Q&A-14 and Q&A-15, shall apply. 
		

		
			 
		

		

		

		 

		

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			(e)Limits on distribution periods. To the extent otherwise permitted under the terms of the Plan, as of the first Distribution Calendar Year, distributions to a Participant, if not made in a single sum, may only be made over one of the following periods: 
		

		
			(i)       The life of the Participant; 
		

		
			(ii)      The joint lives of the Participant and a Designated Beneficiary; 
		

		
			(iii)     A period certain not extending beyond the Life Expectancy of the Participant; or 
		

		
			(iv)     A period certain not extending beyond the joint life and last survivor expectancy of the Participant and a Designated Beneficiary. 
		

		
			3.02   Time and Manner of Distribution.  
		

		
			(a)Required Beginning Date. The Participant’s entire interest will be distributed, or begin to be distributed, to the Participant no later than the Participant’s Required Beginning Date. 
		

		
			(b)Death of Participant before distributions begin. If the Participant dies before distributions begin, the Participant’s entire interest will be distributed, or begin to be distributed, no later than as follows: 
		

		
			 
		

		
			(i)      Life Expectancy rule, spouse is beneficiary. If the Participant’s surviving spouse is the Participant’s sole Designated Beneficiary, then, except as provided in Section 3.08, distributions to the surviving spouse will begin by December 31 of the calendar year immediately following the calendar year in which the Participant died, or by December 31 of the calendar year in which the Participant would have attained age 70 1/2, if later. 
		

		
			(ii)      Life Expectancy rule, spouse is not beneficiary. If the Participant’s surviving spouse is not the Participant’s sole Designated Beneficiary, then, except as provided in Section 3.08, distributions to the Designated Beneficiary will begin by December 31st of the calendar year immediately following the calendar year in which the Participant died. 
		

		
			(iii)      No Designated Beneficiary, 5-year rule. If there is no Designated Beneficiary as of September 30 of the year following the year of the Participant’s death, the Participant’s entire interest will be distributed by December 31st of the calendar year containing the fifth anniversary of the Participant’s death. 
		

		
			(iv)     Surviving spouse dies before distributions begin. If the Participant’s surviving spouse is the Participant’s sole Designated Beneficiary and the surviving spouse dies after the Participant but before distributions to the surviving spouse begin, this Section 3.02(b), other than Section 3.02(b)(i), will apply as if the surviving spouse were the Participant. 
		

		
			 
		

		
			For purposes of this Section 3.02(b), distributions are considered to begin on the Participant’s Required Beginning Date (or, if Section 3.02(b)(iv) applies, the date distributions are required to begin to the surviving spouse under Section 3.02(a)). If annuity payments irrevocably commence to the Participant before the Participant’s Required Beginning Date (or to the Participant’s surviving spouse before the date distributions are required to begin to the surviving spouse under Section 3.02(b)(i)), the date distributions are considered to begin is the date distributions actually commence. 
		

		
			(c)Form of distribution. Unless the Participant’s interest is distributed in the form of an annuity purchased from an insurance company or in a single sum on or before the Required Beginning Date, distributions will be made in accordance with Sections 3.03, 3.04 and 3.05 as of the first Distribution Calendar Year. If the Participant’s interest is distributed in the form of an annuity purchased from an insurance company, distributions thereunder will be made in accordance with the requirements of Code Section 401(a)(9) and the Treasury Regulations thereunder. Any part of the Participant’s interest which is in the form of an individual account described in Code Section 414(k) will be distributed in a manner satisfying the requirements of Code Section 401(a)(9) and the Treasury Regulations thereunder applicable to individual accounts. 
		

		
			3.03   Determination of Amount to be Distributed Each Year.  
		

		
			(a)General annuity requirements. A Participant who is required to begin payments as a result of attaining his or her Required Beginning Date, whose interest has not been distributed in the form of an annuity purchased from an insurance company or in a single sum before such date, may receive such payments in the form of annuity payments under the Plan. Payments under such annuity must satisfy the following requirements: 
		

		
			(i)      The annuity distributions will be paid in periodic payments made at intervals not longer than one year; 
		

		
			(ii)      The distribution period will be over a life (or lives) or over a period certain not longer than the period described in Section 3.04 or 3.05; 
		

		

		

		 

		

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		(iii)     Once payments have begun over a period certain, the period certain will not be changed, even if the period certain is shorter than the maximum period permitted, unless otherwise elected in Section 3.08(d); 
		

		
			(iv)      Payments will either be non-increasing or increase only to the extent permitted by one or more of the following conditions: 
		

		
			(1)By an annual percentage increase that does not exceed the annual percentage increase in an Eligible Cost-of-Living Index for a 12-month period ending in the year during which the increase occurs or the prior year; 
		

		
			 
		

		
			(2)By a percentage increase that occurs at specified times (e.g., at specified ages) and does not exceed the cumulative total of annual percentage increases in an Eligible Cost-of-Living Index since the annuity starting date, or if later, the date of the most recent percentage increase. In cases providing such a cumulative increase, an actuarial increase may not be provided to reflect the fact that increases were not provided in the interim years; 
		

		
			(3)To the extent of the reduction in the amount of the Participant’s payments to provide for a survivor benefit upon death, but only if the beneficiary whose life was being used to determine the distribution period described in Section 3.04 dies or is no longer the Participant’s beneficiary pursuant to a qualified domestic relations order within the meaning of Code Section 414(p); 
		

		
			(4)To allow a beneficiary to convert the survivor portion of a joint and survivor annuity into a single sum distribution upon the Participant’s death; 
		

		
			(5)To pay increased benefits that result from a Plan amendment or other increase in the Participant’s accrued benefit under the Plan; 
		

		
			(6)By a constant percentage, applied not less frequently than annually, at a rate that is less than 5 percent per year; 
		

		
			(7)To provide a final payment upon the death of the Participant that does not exceed the excess of the actuarial present value of the Participant’s accrued benefit (within the meaning of Code Section 411(a)(7)) calculated as of the annuity starting date using the applicable interest rate and the applicable mortality table under Code Section 417(e) (or, if greater, the total amount of employee contributions) over the total of payments before the death of the Participant; or 
		

		
			(8)As a result of dividend or other payments that result from Actuarial Gains, provided: 
		

		
			(I)Actuarial Gain is measured not less frequently than annually; 
		

		
			(II)The resulting dividend or other payments are either paid no later than the year following the year for which the actuarial experience is measured or paid in the same form as the payment of the annuity over the remaining period of the annuity (beginning no later than the year following the year for which the actuarial experience is measured); 
		

		
			 
		

		
			(III)The Actuarial Gain taken into account is limited to actuarial gain from investment experience; 
		

		
			(IV)The assumed interest rate used to calculate such Actuarial Gains is not less than 3 percent; and 
		

		
			(V)The annuity payments are not also being increased by a constant percentage as described in Section 3.03(a)(iv)(6) above. 
		

		
			(b)Amount required to be distributed by Required Beginning Date. 
		

		
			(i)      In the case of a Participant whose interest in the Plan is being distributed as an annuity pursuant to Section 3.03(a), the amount that must be distributed on or before the Participant’s Required Beginning Date (or, if the Participant dies before distributions begin, the date distributions are required to begin under Section 3.02(b)(i) or 3.02(b)(ii)) is the payment that is required for one payment interval. The second payment need not be made until the end of the next payment interval even if that payment interval ends in the next calendar year. Payment intervals are the periods for which payments are received, e.g., bi-monthly, monthly, semi-annually, or annually. All of the Participant’s benefit accruals as of the last day of the first Distribution Calendar Year will be included in the calculation of the amount of the annuity payments for payment intervals ending on or after the Participant’s Required Beginning Date. 
		

		

		

		 

		

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			(ii)      In the case of a single sum distribution of a Participant’s entire accrued benefit during a Distribution Calendar Year, the amount that is the required minimum distribution for the Distribution Calendar Year (and thus not eligible for rollover under Code Section 402(c)) is determined under this Section 3.03(b)(ii). The portion of the single sum distribution that is a required minimum distribution is determined by treating the single sum distribution as a distribution from an individual account Plan and treating the amount of the single sum distribution as the Participant’s account balance as of the end of the relevant valuation calendar year. If the single sum distribution is being made in the calendar year containing the Required Beginning Date and the required minimum distribution for the Participant’s first Distribution Calendar Year has not been distributed, the portion of the single sum distribution that represents the required minimum distribution for the Participant’s first and second Distribution Calendar Years is not eligible for rollover. 
		

		
			(c)Additional accruals after first Distribution Calendar Year. Any additional benefits accruing to the Participant in a calendar year after the first Distribution Calendar Year will be distributed beginning with the first payment interval ending in the calendar year immediately following the calendar year in which such amount accrues. Notwithstanding the preceding, the Plan will not fail to satisfy the requirements of this Section 3.03(c) and Code Section 401(a)(9) merely because there is an administrative delay in the commencement of the distribution of the additional benefits accrued in a calendar year, provided that the actual payment of such amount commences as soon as practicable. However, payment must commence no later than the end of the first calendar year following the calendar year in which the additional benefit accrues, and the total amount paid during such first calendar year must be no less than the total amount that was required to be paid during that year under this Section 3.03(c). 
		

		
			(d)Death after distributions begin. If a Participant dies after distribution of the Participant’s interest begins in the form of an annuity meeting the requirements of this Article, then the remaining portion of the Participant’s interest will continue to be distributed over the remaining period over which distributions commenced. 
		

		
			3.04   Requirements for Annuity Distributions That Commence During Participant’s Lifetime.  
		

		
			(a)Joint life annuities where the beneficiary is the Participant’s spouse. If distributions commence under a distribution option that is in the form of a joint and survivor annuity for the joint lives of the Participant and the Participant’s spouse, the minimum distribution incidental benefit requirement will not be satisfied as of the date distributions commence unless, under the distribution option, the periodic annuity payment payable to the survivor does not at any time on and after the Participant’s Required Beginning Date exceed the annuity payable to the Participant. In the case of an annuity that provides for increasing payments, the requirement of this Section 3.04(a) will not be violated merely because benefit payments to the beneficiary increase, provided the increase is determined in the same manner for the Participant and the beneficiary. If the form of distribution combines a joint and survivor annuity for the joint lives of the Participant and the Participant’s spouse and a period certain annuity, the preceding requirements will apply to annuity payments to be made to the Designated Beneficiary after the expiration of the period certain. 
		

		
			(b)Joint life annuities where the beneficiary is not the Participant’s spouse. If distributions commence under a distribution option that is in the form of a joint and survivor annuity for the joint lives of the Participant and a beneficiary other than the Participant’s spouse, the minimum distribution incidental benefit requirement will not be satisfied as of the date distributions commence unless under the distribution option, the annuity payments to be made on and after the Participant’s Required Beginning Date will satisfy the conditions of this Section 3.04(b). The periodic annuity payment payable to the survivor must not at any time on and after the Participant’s Required Beginning Date exceed the applicable percentage of the annuity payment payable to the Participant using the table set forth in Q&A-2(c)(2) of section 1.401(a)(9)-6 of the Treasury regulations. The applicable percentage is based on the adjusted Participant/beneficiary age difference. The adjusted Participant/beneficiary age difference is determined by first calculating the excess of the age of the Participant over the age of the beneficiary based on their ages on their birthdays in a calendar year. If the Participant is younger than age 70, the age difference determined in the previous sentence is reduced by the number of years that the Participant is younger than age 70 on the Participant’s birthday in the calendar year that contains the annuity starting date. In the case of an annuity that provides for increasing payments, the requirement of this Section 3.04(b) will not be violated merely because benefit payments to the beneficiary increase, provided the increase is determined in the same manner for the Participant and the beneficiary. If the form of distribution combines a joint and survivor annuity for the joint lives of the Participant and a non-spouse beneficiary and a period certain annuity, the preceding requirements will apply to annuity payments to be made to the Designated Beneficiary after the expiration of the period certain. 
		

		

		

		 

		

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			(c)Period certain annuities. Unless the Participant’s spouse is the sole Designated Beneficiary and the form of distribution is a period certain and no life annuity, the period certain for an annuity distribution commencing during the Participant’s lifetime may not exceed the applicable distribution period for the Participant under the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of the Treasury Regulations for the calendar year that contains the annuity starting date. If the annuity starting date precedes the year in which the Participant reaches age 70, the applicable distribution period for the Participant is the distribution period for age 70 under the Uniform Lifetime Table set forth in section 1.401(a)(9)-9 of the Treasury Regulations plus the excess of 70 over the age of the Participant as of the Participant’s birthday in the year that contains the annuity starting date. If the Participant’s spouse is the Participant’s sole Designated Beneficiary and the form of distribution is a period certain and no life annuity, the period certain may not exceed the longer of the Participant’s applicable distribution period, as determined under this Section 3.04(c), or the joint life and last survivor expectancy of the Participant and the Participant’s spouse as determined under the Joint and Last Survivor Table set forth in section 1.401(a)(9)-9 of the Treasury regulations, using the Participant’s and spouse’s attained ages as of the Participant’s and spouse’s birthdays in the calendar year that contains the annuity starting date. 
		

		
			3.05   Requirements for Minimum Distributions Where Participant Dies Before Date Distributions Begin.  
		

		
			(a)Participant survived by Designated Beneficiary. Except as provided in Section 3.08, if the Participant dies before the date distribution of his or her interest begins and there is a Designated Beneficiary, the Participant’s entire interest will be distributed, beginning no later than the time described in Section 3.02(b)(i) or Section 3.02(b)(ii), over the life of the Designated Beneficiary or over a period certain not exceeding: 
		

		
			 
		

		
			(i)      Unless the annuity starting date is before the first Distribution Calendar Year, the Life Expectancy of the Designated Beneficiary determined using the beneficiary’s age as of the beneficiary’s birthday in the calendar year immediately following the calendar year of the Participant’s death; or 
		

		
			(ii)      If the annuity starting date is before the first Distribution Calendar Year, the Life Expectancy of the Designated Beneficiary determined using the beneficiary’s age as of the beneficiary’s birthday in the calendar year that contains the annuity starting date. 
		

		
			(b)No Designated Beneficiary. If the Participant dies before the date distributions begin and there is no Designated Beneficiary as of September 30 of the year following the year of the Participant’s death, distribution of the Participant’s entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Participant’s death. 
		

		
			 
		

		
			(c)Death of surviving spouse before distributions to surviving spouse begin. If the Participant dies before the date distribution of his or her interest begins, the Participant’s surviving spouse is the Participant’s sole Designated Beneficiary, and the surviving spouse dies before distributions to the surviving spouse begin, this Section 3.05 will apply as if the surviving spouse were the Participant, except that the time by which distributions must begin will be determined without regard to Section 3.02(b)(i). 
		

		
			3.06   Definitions.  
		

		
			(a)Actuarial Gain. “Actuarial Gain” means the difference between an amount determined using the actuarial assumptions (i.e., investment return, mortality, expense, and other similar assumptions) used to calculate the initial payments before adjustment for any increases and the amount determined under the actual experience with respect to those factors. Actuarial Gain also includes differences between the amount determined using actuarial assumptions when an annuity was purchased or commenced and such amount determined using actuarial assumptions used in calculating payments at the time the Actuarial Gain is determined. 
		

		
			(b)Designated Beneficiary. “Designated Beneficiary” means the individual who is designated as the beneficiary under the Plan and is the Designated Beneficiary under Code Section 401(a)(9) and section 1.401(a)(9)-4, Q&A-1, of the Treasury Regulations. 
		

		
			(c)Distribution Calendar Year. “Distribution Calendar Year” means a calendar year for which a minimum distribution is required. For distributions beginning before the Participant’s death, the first Distribution Calendar Year is the calendar year immediately preceding the calendar year that contains the Participant’s Required Beginning Date. For distributions beginning after the Participant’s death, the first Distribution Calendar Year is the calendar year in which distributions are required to begin pursuant to Section 3.02(b). 
		

		
			 
		

		

		

		 

		

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			(d)Eligible Cost-of-Living Index. An “Eligible Cost-of-Living Index” means an index described below: 
		

		
			(i)      A consumer price index that is based on prices of all items (or all items excluding food and energy) and issued by the Bureau of Labor Statistics, including an index for a specific population (such as urban consumers or urban wage earners and clerical workers) and an index for a geographic area or areas (such as a given metropolitan area or state); or 
		

		
			(ii)      A percentage adjustment based on a cost-of-living index described in Section (a) above, or a fixed percentage, if less. In any year when the cost-of-living index is lower than the fixed percentage, the fixed percentage may be treated as an increase in an Eligible Cost-of-Living Index, provided it does not exceed the sum of: 
		

		
			(1)     The cost-of-living index for that year, and 
		

		
			(2)     The accumulated excess of the annual cost-of-living index from each prior year over the fixed annual percentage used in that year (reduced by any amount previously utilized under this Section 3.06(d)(ii)). 
		

		
			(e)Life Expectancy. “Life Expectancy” means the life expectancy as computed by use of the Single Life Table in section 1.401(a)(9)-9 of the Treasury Regulations. 
		

		
			(f)Required Beginning Date. Except as otherwise provided in the Plan, the “Required Beginning Date” means the April 1st of the calendar year following the later of the calendar year in which the Participant attains age 70  1/2, or the calendar year in which the Participant retires, except that benefit distributions to a “5-percent owner” must commence by April 1 of the calendar year following the calendar year in which the Participant attains age 70  1/2. Once distributions have begun to a “5-percent owner” under this Article II, they must continue to be distributed, even if the Participant ceases to be a “5-percent owner” in a subsequent Plan Year. 
		

		
			“5-percent owner” means a Participant who is a 5-percent owner as defined in Code Section 416 at any time during the Plan Year ending with or within the calendar year in which such owner attains age 70  1/2. Once required minimum distributions have begun to a 5-percent owner, they must continue to be distributed, even if the Participant ceases to be a 5-percent owner in a subsequent year. 
		

		
			 
		

		
			ARTICLE IV 
		

		
			LIMITATIONS ON BENEFITS 
		

		
			The limitations of Sections 4.01 through 4.05 shall be subject to those of Section 4.06 which shall apply in Limitation Years beginning on or after July 1, 2007, except as otherwise provided therein. 
		

		
			4.01    General Limitations. This Section applies regardless of whether any Participant is or has ever been a participant in another qualified plan maintained by the Employer. If any Participant is or has ever been a participant in another qualified plan, or a welfare benefit fund (as defined in Code Section 419(e)), an individual medical account (as defined in Code Section 415(l)(2), or a simplified employee pension (as defined in Code Section 408(k)) maintained by the Employer, which provides an Annual Addition as defined in Section 4.05(a), Section 4.02 is also applicable to that Participant’s benefits. 
		

		
			(a)The Annual Benefit otherwise payable to a Participant at any time will not exceed the Maximum Permissible Benefit. If the benefit the Participant would otherwise accrue in a Limitation Year would produce an Annual Benefit in excess of the Maximum Permissible Benefit, the benefit must be limited (or the rate of accrual reduced) so that the Annual Benefit does not exceed the Maximum Permissible Benefit. 
		

		
			(b)If a Participant has made voluntary employee contributions, or mandatory employee contributions as defined in Code Section 411(c)(2)(C) under the terms of this Plan, the amount of such contributions is treated as an Annual Addition to a qualified defined contribution plan, for purposes of Sections 4.01(a) and 4.01(b) of this Article. 
		

		
			4.02     Additional General Limitations. This Section applies if any Participant is also a participant, or has ever participated in another plan maintained by the Employer, including a qualified plan, a welfare benefit fund maintained by the Employer (as defined in Code Section 419(e)) under which amounts attributable to post-retirement medical benefits are allocated to separate accounts of Key Employees (as defined in Code Section 419(A)(d)(3), an individual medical account, or a simplified employee pension that provides an annual addition as described in Section 4.05(a). 
		

		
			(a)If a Participant is, or has ever been, a participant covered under more than one defined benefit plan maintained by the Employer, the sum of the Participant’s Annual Benefits from all such plans may not exceed the Maximum Permissible Benefit. If a Participant is or has ever been a participant in more than one defined benefit Plan maintained by an Employer, the rate of accrual in this Plan will be reduced so that the total Annual Benefits payable at any time under such plans will not exceed the Maximum Permissible Benefit. 
		

		
			(b)For Limitation Years beginning before January 1, 2000, if the Employer maintains, or ever maintained, one or more qualified defined contribution plans covering any Participant in this Plan, a welfare benefit fund (as defined in Code 
		

		 

		

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		Section 419(e)), an individual medical account (as defined in Code Section 415(l)(2)), or a simplified employee pension(as defined in Code Section 408(k)), the sum of the Participant’s Defined Contribution Fraction and Defined Benefit Fraction (the “Combined Limit”) will not exceed 1.0 in any Limitation Year. In the event that a Participant’s Combined Limit would otherwise be exceeded for a Limitation Year, shall be reduced, to the extent necessary, such that such accrual plus the Annual Additions credited to any such Participant’s account for the Limitation Year under the defined contribution plan, welfare benefit fund, individual medical account or simplified employee pension will not exceed the Combined Limit. 
		

		
			4.03      Limitation Year beginning after December 31, 1986. In the case of an individual who was a participant in one or more defined benefit plans of the Employer as of the first day of the first Limitation Year beginning after December 31, 1986, the application of the limitations of this Article shall not cause the Maximum Permissible Benefit for such individual under all such defined benefit plans to be less than the individual’s current Accrued Benefit. The preceding sentence applies only if all such defined benefit plans met the requirements of Code Section 415 for all Limitation Years beginning before January 1, 1987. 
		

		
			4.04      Limitation Year beginning after December 31, 1994. In the case of an individual who was a participant in one or more defined benefit plans of the Employer as of the first day of the first Limitation Year beginning after December 31, 1994, the application of the limitations of this Article shall not cause the Maximum Permissible Amount for such individual under all such defined benefit plans to be less than the individual’s Retirement Protection Act of 1994 (“RPA ‘94”) old law benefit. The preceding sentence applies only if all such defined benefit plans met the requirements of Code Section 415 on December 7, 1994. 
		

		
			4.05   Definitions.  
		

		
			(a)Annual Additions. The sum of the following amounts credited to a Participant’s account for the Limitation Year: 
		

		
			(i)         Employer contributions; 
		

		
			(ii)      Employee contributions; 
		

		
			(iii)     Allocations under a simplified employee pension; 
		

		
			(iv)     Forfeitures; and 
		

		
			(v)     Amounts allocated after March 31, 1984, to an individual medical account that is part of a pension or annuity plan maintained by the Employer, are treated as Annual Additions to a defined contribution plan. Also, amounts derived from contributions paid or accrued after December 31, 1985, in taxable years ending after such date, which are attributable to post-retirement medical benefits allocated to the separate account of a Key Employee, as defined in Section 419A(d)(3), under a welfare benefit fund, as defined in Code Section 419(e), maintained by the Employer, are treated as Annual Additions to a defined contribution plan. 
		

		
			 
		

		
			(b)Annual Benefit. A retirement benefit under the Plan which is payable annually in the form of a straight life annuity. A benefit which is payable in a form other than a straight life annuity must be adjusted to an actuarially equivalent straight life annuity before applying the limitations of this Article. In the case of a “GATT Benefit” (which for this purpose is any benefit unless it is paid in the form of a non-decreasing annuity payable over a period not less than the life of the Participant) or a “Non-GATT Benefit” (which for this purpose is any benefit other than a GATT Benefit), the actuarial equivalent straight life annuity commencing as of the benefit commencement date of such GATT Benefit or Non-GATT Benefit is the greater of (i) the equivalent annual life annuity determined by using the interest rate and mortality table in Section 2.02 in Part I of the Plan (the definition of the term “Actuarial Equivalent”) for the purposes of Part I of the Plan and Section 2.02 in Part II of the Plan (the definition of the term “Actuarial Equivalent”) for the purposes of Part II of the Plan; and (ii) the equivalent annual life annuity determined by using the combination of (A) a 5% interest rate in the case of a Non-GATT Benefit or the Code Section 417 Interest Rate in the case of a GATT Benefit; and (B) the Code Section 417 Mortality Table. The portion of the actuarial equivalent straight life annuity attributable to the GATT Benefit is the GATT percentage and the portion of the actuarial equivalent straight life annuity attributable to the Non-GATT Benefit is the Non-GATT Percentage. The Annual Benefit does not include any benefits attributable to Employee contributions or rollover contributions, or the assets transferred from a qualified plan that was not maintained by the Employer. No actuarial adjustment to the benefit is required for (i) the value of a Qualified Joint and Survivor Annuity, (ii) the value of benefits that are not directly related to retirement benefits (such as the qualified disability benefit, pre-retirement death benefits, and post-retirement medical benefits), and (iii) the value of post-retirement cost-of-living increases made in accordance with Code Section 415(d) and Treasury Regulation Section 1.415(c)(2)(iii). 
		

		
			(c)Defined Benefit Dollar Limitation. $90,000. Effective on January 1 of each year, the $90,000 limitation above will be automatically adjusted by multiplying such limit by the cost of living adjustment factor prescribed by the Secretary of the Treasury under Code Section 415(d) in such manner as the Secretary shall prescribe. The new limitation will apply to Limitation Years ending within the calendar year of the date of the adjustment. 
		

		

		

		 

		

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		Notwithstanding the foregoing, effective for Limitation Years ending after December 31, 2001, the Defined Benefit Dollar Limitation is $160,000, as adjusted effective January 1 of each year under Section 415(d) of the Code in such manner as the Secretary shall prescribe, and payable in the form of a straight life annuity. A limitation as adjusted under Code Section 415(d) will apply to Limitation Years ending with or within the calendar year for which the adjustment applies. 
		

		
			 
		

		
			(d)Defined Benefit Fraction. A fraction, the numerator of which is the sum of the Participant’s Projected Annual Benefits under all the defined benefit plans (whether or not terminated) maintained by the Employer, and the denominator of which is the lesser of 125 percent of the dollar limitation determined for the Limitation Year under Code Section 415(b)(1)(A) and (d) or 140 percent of the Highest Average Compensation, including any adjustments under Code Section 415(b)(5), both in accordance with paragraph (h) below. 
		

		
			Notwithstanding the above, if the Participant was a participant as of the first day of the first Limitation Year beginning after December 31, 1986, in one or more defined benefit plans maintained by the Employer which were in existence on May 6, 1986, the denominator of this fraction will not be less than 125 percent of the sum of the annual benefits under such plans which the Participant had accrued as of the close of the last Limitation Year beginning before January 1, 1987, disregarding any changes in the terms and conditions of the Plan after May 5, 1986. The preceding sentence applies only if the defined benefit plans individually and in the aggregate satisfied the requirements of Section 415 for all Limitation Years beginning before January 1, 1987. 
		

		
			Notwithstanding the foregoing, for Limitation Years beginning before January 1, 2000, for any Top Heavy Plan Year, 100 percent shall be substituted for 125 percent unless an extra minimum benefit or contribution is credited pursuant to Section 2.03(b) of Part III of the Plan. However, for any such Plan Year in which this Plan is a super top heavy plan, 100 percent shall be substituted for 125 percent in any event. 
		

		
			 
		

		
			(e)Defined Contribution Fraction. A fraction, the numerator of which is the sum of the Annual Additions to the Participant’s account under all the defined contribution plans (whether or not terminated) maintained by the Employer for the current and all prior Limitation Years, (including the Annual Additions attributable to the Participant’s nondeductible employee contributions to this and all other defined benefit plans (whether or not terminated) maintained by the Employer, and the Annual Additions attributable to all welfare benefit funds (as defined in Code Section 419(e)), individual medical accounts (as defined in Code Section 415(l)(2)), or simplified employee pensions (as defined in Code Section 408(k)), maintained by the Employer, and the denominator of which is the sum of the maximum aggregate amounts for the current and all prior Limitation Years of service with the Employer (regardless of whether a defined contribution plan was maintained by the Employer). 
		

		
			The maximum aggregate amount in any Limitation Year is the lesser of (1) 125 percent of the dollar limitation under Code Section 415(c)(1)(A) after adjustment under Section 415(d), or (2) 35 percent of the Participant’s Compensation for such year. 
		

		
			If the Employee was a participant as of the first day of the first Limitation Year beginning after December 31, 1986, in one or more defined contribution plans maintained by the Employer which were in existence on May 6, 1986, the numerator of this fraction will be adjusted if the sum of this fraction and the defined benefit fraction would otherwise exceed 1.0 under the terms of this plan. Under the adjustment, an amount equal to the product of (i) the excess of the sum of the fractions over 1.0 times (ii) the denominator of this fraction, will be permanently subtracted from the numerator of this fraction. The adjustment is calculated using the fractions as they would be computed as of the end of the last Limitation Year beginning before January 1, 1987, and disregarding any changes in the terms and conditions of the plans made after May 6, 1986, but using the Section 415 limitation applicable to the first Limitation Year beginning on or after January 1, 1987. 
		

		
			The annual addition for any Limitation Year beginning before January 1, 1987 shall not be recomputed to treat all employee contributions as Annual Additions. 
		

		
			Notwithstanding the foregoing, for Limitation Years beginning before January 1, 2000, for any Top Heavy Plan Year, 100 percent shall be substituted for 125 percent unless an extra minimum allocation is made pursuant to Section 2.03(b) of Part III of the Plan. However, for any such Plan Year in which this Plan is a super top heavy plan, 100 percent shall be substituted for 125 percent in any event. 
		

		

		

		 

		

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			(f)Employer. For purposes of this Article, Employer shall mean the employer that adopt this Plan and all members of a controlled group of corporations (as defined in Code Section 414(b) as modified by Code Section 415(h), all trades or businesses under common control (as defined in Code Section 414(c) as modified by code Section 415(h), or all members of an affiliated service group (as defined in Code Section 414(m) of which the adopting Employer is a part, and any other entity required to be aggregated with the Employer pursuant to Regulations under Code Section 414(o). 
		

		
			(g)Highest Average Compensation. The average Compensation for the three consecutive years of service with the Employer that produces the highest average. A year of service with the Employer is the 12-consecutive month period defined in Section 2.44 of Part I of the Plan (the definition of the term, “Year of Service”). 
		

		
			In the case of a Participant who has separated from service, the Participant’s Highest Average Compensation will be automatically adjusted by multiplying such compensation by the cost of living adjustment factor prescribed by the Secretary of the Treasury under Code Section 415(d) in such manner as the Secretary shall prescribe. The adjusted compensation amount will apply to Limitation Years ending within the calendar year of the date of the adjustment. 
		

		
			(h)Maximum Permissible Benefit.  
		

		
			(i)      The lesser of the Defined Benefit Dollar Limitation or 100 percent of the Participant’s Highest Average Compensation. 
		

		
			 
		

		
			(ii)      If the Participant has less than 10 years of participation in the Plan, the Defined Benefit Dollar Limitation is reduced by one-tenth for each year of participation (or part thereof) less than ten. 
		

		
			(iii)      If the Participant has less than ten years of service with the Employer, the Compensation limitation is reduced by one-tenth for each Year of Service (or part thereof) less than ten. The adjustments of this paragraph (iii) shall be applied in the denominator of the Defined Benefit Fraction based upon Years of Service. For purposes of computing the Defined Benefit Fraction only, Years of Service shall include future years of service occurring before the Participant’s Normal Retirement Age. Such future years of service shall include the year that contains the date the Participant reaches Normal Retirement Age, only if it can be reasonably anticipated that the Participant will receive a Year of Service for such year, or the year in which the Participant terminates employment, if earlier. 
		

		
			(iv)      If the Annual Benefit of the Participant commences before the Participant’s Social Security Retirement Age, but on or after Age 62, the Defined Benefit Dollar Limitation as reduced above, if necessary, shall be determined as follows: 
		

		
			(A)     If a Participant’s Social Security Retirement Age is 65, the Dollar Limitation for benefits commencing on or after Age 62 is determined by reducing the Defined Benefit Dollar Limitation by 5/9 of one percent for each month by which benefits commence before the month in which the Participant attains Age 65. 
		

		
			(B)     If a Participant’s Social Security Retirement Age is greater than 65, the Dollar Limitation for benefits commencing on or after Age 62 is determined by reducing the Defined Benefit Dollar Limitation by 5/9 of one percent for each of the first 36 months and 5/12 of one percent for each of the additional months (up to 24 months) by which benefits commence before the month of the Participant’s Social Security Retirement Age. 
		

		

		

		 

		

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			(v)      If the Annual Benefit of a Participant commences prior to Age 62, the Defined Benefit Dollar Limitation shall be the actuarial equivalent of an Annual Benefit beginning at Age 62, as determined above, reduced for each month by which benefits commence before the month in which the Participant attains Age 62. The reduced dollar limitation is the sum of the Non-GATT Limitation and the GATT Limitation. For purposes of the immediately preceding sentence, the Non-GATT Limitation is the product of the Non-GATT Percentage and the lesser of the equivalent early retirement dollar amount computed as described in Section 6.02 of Part I of the Plan (Early Retirement Benefit) or in Section 5.02 of Part II of the Plan (Early Retirement Benefit) and the amount computed using an interest rate of 5% and the Code Section 417 Mortality Table in Section 2.02 in Part I of the Plan (the definition of the term “Actuarial Equivalent” for the purposes of Part I of the Plan) or Section 2.02 in Part II of the Plan (the definition of the term “Actuarial Equivalent” for the purposes of Part II of the Plan); and the GATT Limitation is the product of the GATT Percentage (as described in Section 4.05(b) of Part III of the Plan) and the lesser of the equivalent early retirement dollar amount computed as in described in Section 6.02 of Part I of the Plan (Early Retirement Benefit) or in Section 5.02 of Part II of the Plan (Early Retirement Benefit) and the amount computed using an interest rate of 5% and the Code Section 417 Mortality Table (as described in Section 2.02 in Part I of the Plan (the definition of the term “Actuarial Equivalent” for the purposes of Part I of the Plan) or Section 2.02 in Part II of the Plan (the definition of the term “Actuarial Equivalent” for the purposes of Part II of the Plan); and the GATT Limitation is the product of the GATT Percentage (as described in Section 4.05(b) of Part III of the Plan) and the lesser of the equivalent early retirement dollar amount computed as described in Section 6.02 of Part I of the Plan (Early Retirement Benefit) or in Section 5.02 of Part II of the Plan (Early Retirement Benefit) and the amount computed using the Code Section 417 Interest Rate and the Code Section 417 Mortality Table. Any decrease in the Defined Benefit Dollar Limitation determined in accordance with this Paragraph (iv) shall not reflect the mortality decrement to the extent that benefits will not be forfeited upon the death of the Participant. 
		

		
			(vi)      If the Annual Benefit of a Participant commences after the Participant’s Social Security Retirement Age, the Defined Benefit Dollar Limitation as reduced in (ii) above, if necessary, shall be adjusted so that it is the actuarial equivalent of an annual benefit of such Dollar Limitation beginning at the Participant’s Social Security Retirement Age. The increased dollar limitation is the lesser of the equivalent dollar amount computed using the interest rate and mortality table used for actuarial equivalence set forth in Part I of the Plan (the definition of the term “Actuarial Equivalent” for the purposes of Part I of the Plan) or Section 2.02 in Part II of the Plan (the definition of the term “Actuarial Equivalent” for the purposes of Part II of the Plan) and the amount computed using an interest rate of 5 percent and the Code Section 417 Mortality Table (as described in Part I of the Plan (the definition of the term “Actuarial Equivalent” for the purposes of Part I of the Plan) or Section 2.02 in Part II of the Plan (the definition of the term “Actuarial Equivalent” for the purposes of Part II of the Plan). 
		

		
			(i)Projected Annual Benefit. The Annual Benefit, as defined in Section 4.05(b) of this Article, to which the Participant would be entitled under the terms of the Plan assuming: 
		

		
			(i)      the Participant will continue employment until Normal Retirement Age under the Plan (or current Age, if later); and 
		

		
			 
		

		
			(ii)      the Participant’s Compensation for the current Limitation Year and all other relevant factors used to determine benefits under the Plan will remain constant for all future Limitation Years. 
		

		
			(j)RPA ‘94 Old Law Benefit. The Participant’s Accrued Benefit under the terms of the plan as of December 31, 1996, (the “RPA ‘94 freeze date”), for the annuity starting date and optional form and taking into account the limitations of Code Section 415, as in effect on December 7, 1994, including the participation requirements under Code Section 415(b)(5). In determining the amount of a Participant’s RPA ‘94 old law benefit, the following shall be disregarded; 
		

		
			(i)      any Plan amendment increasing benefits adopted after the RPA ‘94 freeze date; and 
		

		
			(ii)      any cost of living adjustments that become effective after such date. 
		

		
			A Participant’s RPA ‘94 old law benefit is not increased after the RPA ‘94 freeze date, but if the limitations of Code Section 415, as in effect on December 7, 1994, are less than the limitations that were applied to determine the Participant’s RPA ‘94 old law benefit on the RPA ‘94 freeze date, then the Participant’s RPA ‘94 old law benefit will be reduced in accordance with such reduced limitation. If, at any date after the RPA ‘94 freeze date, the Participant’s total plan benefit, before the application of Code Section 415, is less than the Participant’s RPA ‘94 old law benefit, the RPA ‘94 old law benefit will be reduced to the Participant’s total plan benefit. 
		

		
			(k)Social Security Retirement Age. Age 65 in the case of a Participant attaining Age 62 before January 1, 2000 (i.e., born before January 1, 1938), Age 66 for a Participant attaining age 62 after December 31, 1999, and before January 1, 2017 (i.e., born after December 31, 1937, but before January 1, 1955), and Age 67 for a participant attaining Age 62 after December 31, 2016 (i.e., born after December 31, 1954). 
		

		

		

		 

		

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		(l)TRA ‘86 Accrued Benefit. A Participant’s Accrued Benefit under the Plan, determined as if the Participant had separated from service as of the close of the last Limitation Year beginning before January 1, 1987, when expressed as an annual benefit within the meaning of Code Section 415(b)(2). In determining the amount of a Participant’s TRA ‘86 Accrued Benefit, the following shall be disregarded: 
		

		
			(i)      any change in the terms and conditions of the Plan after May 5, 1986; and 
		

		
			(ii)      any cost of living adjustments occurring after May 5, 1986. 
		

		
			(m)Year of Participation. The Participant shall be credited with a year of participation (computed to fractional parts of a year) for each accrual computation period for which the following conditions are met: (i) The Participant is credited with at least the number of Hours of Service for benefit accrual purposes, required under the terms of the Plan in order to accrue a benefit for the accrual computation period, and (ii) the Participant is included as a Participant under the eligibility provisions of the plan for at least one day of the accrual computation period. If these two conditions are met, the portion of a year of participation credited to the Participant shall equal the amount of benefit accrual service credited to the Participant for such accrual computation period. 
		

		
			4.06   Final Section 415 Regulations.Effective Date. The limitations of this Section shall apply in Limitation Years beginning on or after July 1, 2007, except as otherwise provided herein. 
		

		
			(b)Grandfather Provision. The application of the provisions of this Section shall not cause the maximum permissible benefit for any Participant to be less than the Participant’s accrued benefit under all the defined benefit plans of the employer or a predecessor employer as of the end of the last Limitation Year beginning before July 1, 2007 under provisions of the plans that were both adopted and in effect before April 5, 2007. The preceding sentence applies only if the provisions of such defined benefit plans that were both adopted and in effect before April 5, 2007 satisfied the applicable requirements of statutory provisions, regulations, and other published guidance relating to Code Section 415 in effect as of the end of the last Limitation Year beginning before July 1, 2007, as described in Section 1.415(a)-1(g)(4) of the Treasury Regulations. 
		

		
			(c)Incorporation by Reference. Notwithstanding anything contained in the Plan to the contrary, the limitations, adjustments, and other requirements prescribed in the Plan shall comply with the provisions of Code Section 415 and the final regulations promulgated thereunder, the terms of which are specifically incorporated herein by reference as of the first Limitation Year beginning on or after July 1, 2007, except where an earlier effective date is otherwise provided in the final regulations or in this Section. However, where the final regulations permit the Plan to specify an alternative option to a default option set forth in the regulations, and the alternative option was available under statutory provisions, regulations, and other published guidance relating to Code Section 415 as in effect prior to April 5, 2007, and the Plan provisions in effect as of April 5, 2007 incorporated the alternative option, said alternative option shall remain in effect as a plan provision for Limitation Years beginning on or after July 1, 2007. 
		

		
			(d)High Three-Year Average Compensation. For purposes of the Plan’s provisions reflecting Code Section 415(b)(3) (i.e., limiting the annual benefit payable to no more than 100% of the Participant’s average annual compensation), a Participant’s average compensation shall be the average compensation for the three consecutive years of service, during which the Employee had the greatest aggregate compensation from the Employer, except that a Participant’s compensation for a year of service shall not include compensation in excess of the limitation under Code Section 401(a)(17) that is in effect for the calendar year in which such year of service begins. If the Participant has less than three consecutive years of service, compensation shall be averaged over the Participant’s longest consecutive period of service, including fractions of years, but not less than one year. In the case of a Participant who is rehired by the Employer after a severance of employment, the Participant’s high three-year average compensation shall be calculated by excluding all years for which the Participant performs no services for and receives no compensation from the Employer (the “break period”), and by treating the years immediately preceding and following the break period as consecutive. 
		

		
			(e)Adjustment to dollar limit after date of severance. In the case of a Participant who has had a severance from employment with the Employer, the Defined Benefit Dollar Limitation applicable to the Participant in any Limitation Year beginning after the date of severance shall be automatically adjusted under Code Section 415(d). 
		

		
			(f)Compensation paid after severance from employment. For Limitation Years beginning on or after July 1, 2007 compensation for a Limitation Year, within the meaning of Code Section 415(c)(3), shall also include the following types of compensation paid by the later of 2 1/2 months after a Participant’s severance from employment with the employer maintaining the plan or the end of the Limitation Year that includes the date of the Participant’s severance from employment with the employer maintaining the plan. Any other payment of compensation paid after severance of employment that is not described in the following types of compensation is not considered compensation within the meaning of Code Section 415(c)(3), even if payment is made within the time period specified above. 
		

		

		

		 

		

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		(i)      Regular pay after severance from employment. Compensation shall include regular pay after severance of employment if: 
		

		
			(1)     The payment is regular compensation for services during the Participant’s regular working hours, or compensation for services outside the Participant’s regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments; and 
		

		
			(2)     The payment would have been paid to the Participant prior to a severance from employment if the Participant had continued in employment with the employer. 
		

		
			(ii)      Leave cashouts and deferred compensation. Leave cashouts and deferred compensation shall be included in compensation, if those amounts would have been included in the definition of compensation if they were paid prior to the Participant’s severance from employment with the Employer maintaining the Plan, and the amounts are either: 
		

		
			(1)     Payment for unused accrued bona fide sick, vacation, or other leave, but only if the Participant would have been able to use the leave if employment had continued; or 
		

		
			 
		

		
			(2)     Received pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid to the if the Participant had continued in employment with the employer and only to the extent that the payment is includible in the Participant’s gross income. 
		

		
			(iii)      Salary continuation payments for military service Participants. Compensation does not include payments to an individual who does not currently perform services for the employer by reason of qualified military service (as that term is used in Code Section 414(u)(1)) to the extent those payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the employer rather than entering qualified military service. Notwithstanding the foregoing, for Plan Years beginning after December 31, 2008, a differential wage payment, as defined by Code Section 3401(h)(2), shall be treated as compensation, for purposes of Code Section 415(c)(3) and Treasury Regulation Section 1.415(c)-2, as provided Section 11.02 of Part III of the Plan. 
		

		
			(iv)      Salary continuation payments for disabled Participants. Compensation does not include compensation paid to a Participant who is permanently and totally disabled (as defined in Code Section 22(e)(3)) if the Participant is not a highly compensated employee (as defined in Code Section 414(q)) immediately before becoming disabled, or to all Participants if the Plan provides for the continuation of compensation on behalf of all Participants who are permanently and totally disabled for a fixed or determinable period. 
		

		
			(g)Administrative delay. Compensation for a Limitation Year shall not include amounts earned but not paid during the Limitation Year solely because of the timing of pay periods and pay dates, provided the amounts are paid during the first few weeks of the next Limitation Year, the amounts are included on a uniform and consistent basis with respect to all similarly situation Participants, and no compensation is included in more than one Limitation Year. 
		

		
			(h)Option to apply compensation provisions early. The rules in Sections 4.6(g) shall apply for Limitation Years beginning on or after July 1, 2007. 
		

		
			ARTICLE V 
		

		
			PRE-TERMINATION BENEFIT RESTRICTIONS 
		

		
			5.01      In General. In the event of Plan termination, the benefit of any Highly Compensated Employee is limited to a benefit that is nondiscriminatory under Code Section 401(a)(4). 
		

		
			 
		

		
			Benefits distributed to any of the 25 most Highly Compensated Employees shall be restricted such that the annual payments shall be no greater than an amount equal to the payment that would be made on behalf of the Employee under a single life annuity that is the Actuarial Equivalent of the sum of the Employee’s Accrued Benefit and the Employee’s other benefits under the Plan. 
		

		
			5.02      Exceptions. Section 5.01 shall not apply if: (i) after payment of the benefit to an Employee described in the preceding Section, the value of Plan assets equals or exceeds 110% of the value of current liabilities, as defined in Code Section 412(l)(7); or (ii) the value of the benefits for an Employee described above is less than 1% of the value of current liabilities. 
		

		
			5.03    Included Benefits. For purposes of this Article, benefits include any periodic income, any withdrawal values payable to a living Employee, and any death benefits not provided for by insurance on the Employee’s life. 
		

		

		

		 

		

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		ARTICLE V I 
		

		
			BENEFIT RESTRICTIONS 
		

		
			6.01   Effective Date and Application of Section.  
		

		
			(i)       Effective Date. The provisions of this Section apply to Plan Years beginning after December 31, 2007. 
		

		
			(ii)      Notwithstanding anything in this Section to the contrary, the provisions of Code Section 436 and the Regulations thereunder are incorporated herein by reference. 
		

		
			(iii)      For Plans that have a valuation date other than the first day of the Plan Year, the provisions of Code Section 436 and this Article will be applied in accordance with Regulations. 
		

		
			6.02   Funding-Based Limitation on Shutdown Benefits and Other Unpredictable Contingent Event Benefits.  
		

		
			(i)       In general. If a Participant is entitled to an “unpredictable contingent event benefit” payable with respect to any event occurring during any Plan Year, then such benefit may not be provided if the “adjusted funding target attainment percentage” for such Plan Year (A) is less than sixty percent (60%) or, (B) would be less than sixty percent (60%) percent taking into account such occurrence. 
		

		
			(ii)      Exemption. Paragraph (i) shall cease to apply with respect to any Plan Year, effective as of the first day of the Plan Year, upon payment by the Employer of a contribution (in addition to any minimum required contribution under Code Section 430) equal to: 
		

		
			(A)     in the case of 5.02(i)(A) above, the amount of the increase in the funding target of the Plan (under Code Section 430) for the Plan Year attributable to the occurrence referred to in paragraph (i), and 
		

		
			 
		

		
			(B)     in the case of 5.02(i)(B) above, the amount sufficient to result in an “adjusted funding target attainment percentage” of sixty percent (60%). 
		

		
			(iii)      Unpredictable contingent event benefit. For purposes of this subsection, the term “unpredictable contingent event benefit” means any benefit payable solely by reason of: 
		

		
			(A)     a plant shutdown (or similar event, as determined by the Secretary of the Treasury), or 
		

		
			(B)     an event other than the attainment of any age, performance of any service, receipt or derivation of any compensation, or occurrence of death or disability. 
		

		
			6.03   Limitations on Plan Amendments Increasing Liability for Benefits. 
		

		
			(i)      In general. No amendment which has the effect of increasing liabilities of the Plan by reason of increases in benefits, establishment of new benefits, changing the rate of benefit accrual, or changing the rate at which benefits become nonforfeitable may take effect during any Plan Year if the “adjusted funding target attainment percentage” for such Plan Year is: 
		

		
			(A)     less than eighty percent (80%), or 
		

		
			(B)     would be less than eighty percent (80%) taking into account such amendment. 
		

		
			(ii)      Exemption. Paragraph 5.03(i) above shall cease to apply with respect to any Plan Year, effective as of the first day of the Plan Year (or if later, the effective date of the amendment), upon payment by the Employer of a contribution (in addition to any minimum required contribution under Code Section 430) equal to - 
		

		
			(A)     in the case of paragraph 5.03(i)(A) above, the amount of the increase in the funding target of the Plan (under Code Section 430) for the Plan Year attributable to the amendment, and 
		

		
			(B)     in the case of paragraph 5.03(i)(B) above, the amount sufficient to result in an “adjusted funding target attainment percentage” of eighty percent (80%). 
		

		
			(iii)      Exception for certain benefit increases. Paragraph (i) shall not apply to any amendment which provides for an       increase in benefits under a formula which is not based on a Participant’s compensation, but only if the rate of such increase is not in excess of the contemporaneous rate of increase in average wages of Participants covered by the amendment. 
		

		
			6.04   Limitations on Accelerated Benefit Distributions. 
		

		
			(i)      Funding percentage less than sixty percent (60%). If the Plan’s “adjusted funding target attainment percentage” for a Plan Year is less than sixty percent (60%), then the Plan may not pay any “prohibited payment” after the valuation date for the Plan Year. 
		

		

		

		 

		

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		(ii)      Bankruptcy. During any period in which the Employer is a debtor in a case under title 11, United States Code, or similar Federal or State law, the Plan may not pay any “prohibited payment.” The preceding sentence shall not apply on or after the date on which the enrolled actuary of the Plan certifies that the “adjusted funding target attainment percentage” of the Plan is not less than one-hundred percent (100%). 
		

		
			(iii)      Limited payment if percentage at least sixty percent (60%) but less than eighty percent (80%) percent.  
		

		
			(A)     In general. If the Plan’s “adjusted funding target attainment percentage” for a Plan Year is sixty percent (60%) or greater but less than eighty percent (80%), then the Plan may not pay any “prohibited payment” after the valuation date for the Plan Year to the extent the amount of the payment exceeds the lesser of: 
		

		
			(1)     fifty (50) percent of the amount of the payment which could be made without regard to this subsection, or 
		

		
			(2)     the present value (determined under guidance prescribed by the Pension Benefit Guaranty Corporation, using the interest and mortality assumptions under Code Section 417(e)) of the maximum guarantee with respect to the participant under ERISA Section 4022. 
		

		
			(B)One-time application.  
		

		
			(1)     In general. Only 1 “prohibited payment” meeting the requirements of subparagraph (A) may be made with respect to any Participant during any period of consecutive Plan Years to which the limitations under either paragraph (i) or (ii) or this paragraph applies. 
		

		
			(2)     Treatment of beneficiaries. For purposes of this subparagraph, a Participant and any Beneficiary (including an alternate payee, as defined in Code Section 414(p)(8)) shall be treated as one Participant. If the Accrued Benefit of a Participant is allocated to such an alternate payee and one or more other persons, the amount under subparagraph (A) shall be allocated among such persons in the same manner as the Accrued Benefit is allocated unless the qualified domestic relations order (as defined in Code Section 414(p)(1)(A)) provides otherwise. 
		

		
			(iv)     Exception. This subsection shall not apply for any Plan Year if the terms of the Plan (as in effect for the period beginning on September 1, 2005, and ending with such Plan Year) provide for no benefit accruals with respect to any Participant during such period. 
		

		
			(v)       “Prohibited payment.” For purpose of this subsection, the term “prohibited payment” means: 
		

		
			(A)    any payment, in excess of the monthly amount paid under a single life annuity (plus any Social Security supplements described in the last sentence of Code Section 411(a)(9)), to a Participant or Beneficiary whose Annuity Starting Date occurs during any period a limitation under paragraph (i) or (ii) is in effect, 
		

		
			(B)     any payment for the purchase of an irrevocable commitment from an insurer to pay benefits, and 
		

		
			(C)     any other payment specified by the Secretary by Regulations. 
		

		
			Such term shall not include the payment of a benefit which under Code Section 411(a)(11) may be immediately distributed without the consent of the Participant. 
		

		
			6.05   Limitation on Benefit Accruals for Plans With Severe Funding Shortfalls.  
		

		
			(i)       In general. If the Plan’s “adjusted funding target attainment percentage” for a Plan Year is less than sixty percent (60%), benefit accruals under the Plan shall cease as of the valuation date for the Plan Year. 
		

		
			(ii)      Exemption. Paragraph (i) shall cease to apply with respect to any Plan Year, effective as of the first day of the Plan Year, upon payment by the Employer of a contribution (in addition to any minimum required contribution under Code Section 430) equal to the amount sufficient to result in an “adjusted funding target attainment percentage” of sixty percent (60%). 
		

		
			(iii)      Temporary modification of limitation. In the case of the first Plan Year beginning during the period beginning on October 1, 2008, and ending on September 30, 2009, the provisions of Section 6.05(i) above shall be applied by substituting the Plan’s “adjusted funding target attainment percentage” for the preceding Plan Year for such percentage for such Plan Year, but only if the “adjusted funding target attainment percentage” for the preceding year is greater. 
		

		
			 
		

		

		

		 

		

			17

		

		

			 

		

 

		
		

		
			6.06   Rules Relating to Contributions Required to Avoid Benefit Limitations.  
		

		
			(i)      Security may be provided.  
		

		
			(A)     In general. For purposes of this section, the “adjusted funding target attainment percentage” shall be determined by treating as an asset of the Plan any security provided by the Employer in a form meeting the requirements of subparagraph (B). 
		

		
			(B)     Form of security. The security required under subparagraph (A) shall consist of: 
		

		
			(1)     a bond issued by a corporate surety company that is an acceptable surety for purposes of ERISA Section 412; 
		

		
			(2)     cash, or United States obligations which mature in three (3) years or less, held in escrow by a bank or similar financial institution; or 
		

		
			(3)     such other form of security as is satisfactory to the Secretary and the parties involved. 
		

		
			(C)Enforcement. Any security provided under subparagraph (A) may be perfected and enforced at any time after the earlier of: 
		

		
			(1)     the date on which the Plan terminates; 
		

		
			(2)     if there is a failure to make a payment of the minimum required contribution for any Plan Year beginning after the security is provided, the due date for the payment under Code Section 430(j); or 
		

		
			(3)     if the “adjusted funding target attainment percentage” is less than sixty percent (60%) for a consecutive period of 7 years, the valuation date for the last year in the period. 
		

		
			(D)     Release of security. The security shall be released (and any amounts thereunder shall be refunded together with any interest accrued thereon) at such time as the Secretary may prescribe in Regulations, including Regulations for partial releases of the security by reason of increases in the “adjusted funding target attainment percentage.” 
		

		
			(ii)      Prefunding balance or funding standard carryover balance may not be used. No prefunding balance under Code Section 430(f) or funding standard carryover balance may be used under Sections 6.02, 6.03, or 6.05 to satisfy any payment an Employer may make under any such subsection to avoid or terminate the application of any limitation under such subsection. 
		

		
			(iii)      Deemed reduction of funding balances:  
		

		
			(A)     In general. In any case in which a benefit limitation under Sections 6.02, 6.03, 6.04, or 6.05 would (but for this subparagraph and determined without regard to Sections 6.02(ii), 6.03(ii), or 6.05(ii)) apply to such Plan for the Plan Year, the Employer shall be treated for purposes of this title as having made an election under Code Section 430(f) to reduce the prefunding balance or funding standard carryover balance by such amount as is necessary for such benefit limitation to not apply to the Plan for such Plan Year. 
		

		
			(B)     Exception for insufficient funding balances. Subparagraph (A) shall not apply with respect to a benefit limitation for any Plan Year if the application of subparagraph (A) would not result in the benefit limitation not applying for such Plan Year.
		

		
			6.07   Presumed Underfunding for Purposes of Benefit Limitations.  
		

		
			(i)      Presumption of continued underfunding. In any case in which a benefit limitation under Sections 6.02, 6.03, 6.04, or 6.05 has been applied to a Plan with respect to the Plan Year preceding the current Plan Year, the “adjusted funding target attainment percentage” of the Plan for the current Plan Year shall be presumed to be equal to the “adjusted funding target attainment percentage” of the Plan for the preceding Plan Year until the enrolled actuary of the Plan certifies the actual “adjusted funding target attainment percentage” of the Plan for the current Plan Year. 
		

		
			(ii)      Presumption of underfunding after 10th month. In any case in which no certification of the “adjusted funding target attainment percentage” for the current Plan Year is made with respect to the Plan before the first day of the 10th month of such year, for purposes of Sections 6.02, 6.03, 6.04, and 6.05, such first day shall be deemed, for purposes of such subsection, to be the valuation date of the Plan for the current Plan Year and the Plan’s “adjusted funding target attainment percentage” shall be conclusively presumed to be less than sixty percent (60%) as of such first day. 
		

		

		

		 

		

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		(iii)      Presumption of underfunding after 4th month for nearly underfunded plans. In any case in which: 
		

		
			(A)     a benefit limitation under Sections 6.02, 6.03, 6.04, or 6.05 did not apply to a Plan with respect to the Plan Year preceding the current Plan Year, but the “adjusted funding target attainment percentage” of the Plan for such preceding Plan Year was not more than ten (10) percentage points greater than the percentage which would have caused such subsection to apply to the Plan with respect to such preceding Plan Year, and 
		

		
			(B)     as of the first day of the 4th month of the current Plan Year, the enrolled actuary of the Plan has not certified the actual “adjusted funding target attainment percentage” of the Plan for the current Plan Year, until the enrolled actuary so certifies, such first day shall be deemed, for purposes of such subsection, to be the valuation date of the Plan for the current Plan Year and the “adjusted funding target attainment percentage” of the Plan as of such first day shall, for purposes of such subsection, be presumed to be equal to ten (10) percentage points less than the “adjusted funding target attainment percentage” of the Plan for such preceding Plan Year. 
		

		
			6.08   Treatment of Plan as of Close of Prohibited or Cessation Period. The following provisions apply for purposes of applying this Section. 
		

		
			(i)      Operation of Plan after period. Payments will resume effective as of the day following the close of the period for which any limitation of payment of benefits under Section 6.04 applies. If a limitation on benefit accruals under Section 6.05 applies to the Plan as of a “Section 436 measurement date,” but that limit no longer applies to the Plan as of a later “Section 436 measurement date,” then that limitation shall not apply to benefit accruals that are based on service on or after that later “Section 436 measurement date,” except to the extent that the Plan does then not provide for such benefit accruals or provides that benefit accruals will not resume when the limitation ceases to apply. A “Section 436 measurement date” is the date that is used to determine when the limitations of Code Sections 436(d) and 436(e) apply or cease to apply. 
		

		
			(ii)      Treatment of affected benefits. Nothing in this subsection shall be construed as affecting the Plan’s treatment of benefits which would have been paid or accrued but for this Section. 
		

		
			6.09   Definitions.  
		

		
			(i)      The term “funding target attainment percentage” has the same meaning given such term by Code Section 430(d)(2), except as otherwise provided herein. However, in the case of Plan Years beginning in 2008, the “funding target attainment percentage” for the preceding Plan Year may be determined using such methods of estimation as the Secretary may provide. 
		

		
			 
		

		
			(ii)      The term “adjusted funding target attainment percentage” means the “funding target attainment percentage” which is determined under paragraph (i) by increasing each of the amounts under subparagraphs (A) and (B) of Code Section 430(d)(2) by the aggregate amount of purchases of annuities for employees other than highly compensated employees (as defined in Code Section 414(q)) which were made by the Plan during the preceding two (2) Plan Years. 
		

		
			(iii)      Application to plans which are fully funded without regard to reductions for funding balances.  
		

		
			(A)     In general. In the case of a Plan for any Plan Year, if the “funding target attainment percentage” is one-hundred percent (100%) or more (determined without regard to this paragraph and without regard to the reduction in the value of assets under Code Section 430(f)(4)(A)), the “funding target attainment percentage” for purposes of paragraphs (i) and (ii) shall be determined without regard to such reduction. 
		

		
			(B)     Transition rule. Subparagraph (A) shall be applied to Plan Years beginning after 2007 and before 2011 by substituting for “one-hundred percent (100%)” the applicable percentage determined in accordance with the following table: 
		

		
			 
		

		

		

		 

		

			19

		

		

			 

		

 

		
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						In the case of a Plan Year beginning in calendar year:

					
					
						  

					
					
						The applicable percentage is:

				
	
					
						 

					
					
						 

				
	
					
						2008...................................................................

					
					
						  

					
					
						92%

				
	
					
						2009...................................................................

					
					
						  

					
					
						94%

				
	
					
						2010...................................................................

					
					
						  

					
					
						96%

				

		
			 
		

		
			(C)     Subparagraph (B) shall not apply with respect to any Plan Year after 2008 unless the “funding target attainment percentage” (determined without regard to this paragraph) of the Plan for each preceding Plan Year after 2007 was not less than the applicable percentage with respect to such preceding Plan Year determined under subparagraph (B). 
		

		
			ARTICLE VII 
		

		
			PLAN FIDUCIARY RESPONSIBILITIES 
		

		
			7.01   Plan Fiduciaries. The Plan Fiduciaries shall be: 
		

		
			(i)       the Trustee(s) of the Plan; 
		

		
			(ii)       the Plan Administrator; and 
		

		
			 
		

		
			(iii)      such other person or persons as may be designated by the Plan Administrator as a fiduciary in accordance with the provisions of this Article. 
		

		
			7.02   General Fiduciary Duties. Each Plan Fiduciary shall discharge his or her duties solely in the interest of the Participants and their Beneficiaries and act: 
		

		
			(i)      for the exclusive purpose of providing benefits to Participants and their Beneficiaries and defraying reasonable expenses of administering the Plan; 
		

		
			(ii)     with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; 
		

		
			(iii)     by diversifying the investments of the Plan so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so, if the Fiduciary has the responsibility to invest plan assets; and 
		

		
			(iv)     in accordance with the documents and instruments governing the Plan insofar as such documents and instruments are consistent with the provisions only Title I of ERISA. 
		

		
			Each Plan Fiduciary shall perform the duties specifically assigned to him or her. No Plan Fiduciary shall have any responsibility for the performance or non-performance of any duties not specifically allocated to him or her. 
		

		
			7.03    Duties of the Trustee(s). The specific responsibilities and duties of the Trustee(s) are set forth in the Trust Indenture among the Plan Sponsor, the Plan Administrator, and the Trustee(s). In general the Trustee(s) shall: 
		

		
			(i)      invest Plan assets, subject to directions from the Plan Administrator or from any duly appointed investment manager; 
		

		
			(ii)      maintain adequate records of receipts, disbursements, and other transactions involving the Plan; and 
		

		
			(iii)     prepare such reports, statements, tax returns and other forms as may be required under the Trust Indenture or applicable laws and regulations. 
		

		
			7.04    Powers and Duties of the Plan Administrator. The Plan Administrator is the Benefits Committee. The Plan Administrator shall have the power, discretionary authority, and duty to interpret the provisions of the Plan and to make all decisions and take all actions that shall be necessary or proper in order to carry out the provisions of the Plan. Without limiting the generality of the foregoing, the Plan Administrator shall: 
		

		
			(i)      monitor compliance with the provisions of ERISA and other applicable laws with respect to the Plan; 
		

		
			 
		

		
			(ii)     establish an investment policy and funding method consistent with objectives of the Plan and with the requirements of applicable laws and regulations; 
		

		
			(iii)     invest Plan assets except to the extent that the Plan Administrator has delegated such investment duties to an investment manager; 
		

		

		

		 

		

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		(iv)     evaluate from time to time investment policy and the performance of any investment manager or investment advisor appointed by it; 
		

		
			(v)     be solely responsible to, and shall, interpret and construe the Plan and resolve any ambiguities therein, with any such interpretations or constrictions to be conclusively binding and final, to the extent permitted by applicable law, upon all persons interested or claiming under the Plan; 
		

		
			(vi)     determine, in its sole discretion, all questions concerning the eligibility of any person to participate in the Plan, the right to and the amount of any benefit payable under the Plan to or on behalf of an individual and the date on which any individual ceases to be a Participant, with any such determination to be conclusively binding and final, to the extent permitted by applicable law, upon all persons interested or claiming an interest in the Plan; 
		

		
			(vii)    establish guidelines as required for the orderly and uniform administration of the Plan; 
		

		
			(viii)   exercise overall control of the operation and administration of the Plan in matters not allocated to some other Fiduciary by the terms of this Plan. 
		

		
			(ix)     administer the Plan on a day-to-day basis in accordance with the provisions of this Plan and all other pertinent documents; 
		

		
			(x)      retain and maintain Plan records, including Participant census data, participation dates, compensation records, and such other records necessary or desirable for proper Plan administration; 
		

		
			(xi)     prepare and arrange for delivery to Participants of such summaries, descriptions, announcements and reports as are required to be given to participants under applicable laws and regulations; 
		

		
			(xii)    file with the U.S. Department of Labor, the Internal Revenue Service and other regulatory agencies on a timely basis all required reports, forms and other documents; 
		

		
			 
		

		
			(xiii)    prepare and furnish to the Trustee(s) sufficient records and data to enable the Trustee(s) to properly perform its obligations under the Trust Indenture; and 
		

		
			(xiv)    to take appropriate actions required to correct any errors made in determining the eligibility of any employee for benefits under the Plan or the amount of benefits payable under the Plan, including as part of correcting any error made in computing the benefits of any Participant or Beneficiary, making equitable adjustments (an increase or decrease) in the amount of any future benefits payable under the Plan and including the recovery of any overpayment of benefits paid from the Plan as provided in Treasury Regulation Section 1.401(a)-13(c)(2)(iii). 
		

		
			The Plan Administrator may appoint or employ such advisers or assistants as the Plan Administrator deems necessary and may delegate to any one or more of its members any responsibility it may have under the Plan or designate any other person or persons to carry out any responsibility it may have under the Plan. 
		

		
			Notwithstanding any provisions elsewhere to the contrary, the Plan Administrator shall have total discretion to fulfill the above responsibilities as the Plan Administrator sees fit on a uniform and consistent basis and as the Plan Administrator believes a prudent person acting in a like capacity and familiar with such matters would do. 
		

		
			7.05     Designation of Fiduciaries. The Plan Administrator shall have the authority to appoint and remove Trustee(s) in accordance with the Trust Indenture. The Plan Administrator may appoint and remove an investment manager and delegate to said investment manager power to manage, acquire or dispose of any assets of the Plan. 
		

		
			While there is an investment manager, the Plan Administrator shall have no obligation under this Plan with regard to the performance or non-performance of the duties delegated to the investment manager. 
		

		
			The Plan Administrator shall appoint all other Fiduciaries of this Plan. In making its appointment or delegation of authority, the Plan Administrator may designate all of the responsibilities to one person or it may allocate the responsibilities, on a continuing basis or on an ad hoc basis, to one or more individuals either jointly or severally. No individual named a Fiduciary shall have any responsibility for the performance or non-performance of any responsibilities or duties not allocated to him or her. 
		

		
			The appointing authority of a Fiduciary shall periodically, but not less frequently than annually, review the performance of each Fiduciary appointed in order to carry out the general fiduciary duties specified in Section 7.02 and, where appropriate, in its sole discretion, take or recommend remedial action. 
		

		

		

		 

		

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			7.06   Delegation of Duties by a Fiduciary. Except as provided in this Plan or in the appointment as a Fiduciary, no Fiduciary may delegate his or her or her fiduciary responsibilities. If authorized by the appointing authority, a Fiduciary may appoint such agents as may be deemed necessary and delegate to such agents any non-fiduciary powers or duties, whether ministerial or discretionary. No Fiduciary or agent of a Fiduciary who is a full-time employee of the Employer will receive any compensation from the Plan for his or her or her services, but the Employer or the Plan shall pay all expenses that such employee reasonably incurs in the discharge of his or her duties. 
		

		
			ARTICLE VIII 
		

		
			BENEFITS COMMITTEE 
		

		
			8.01       Appointment of Benefits Committee. The Benefits Committee (the “Benefits Committee”) shall consist of three or more members appointed from time to time by the President of the Employer (the “President”), who shall also designate one of the members as chairperson. Each member of the Benefits Committee and its chairperson shall serve at the pleasure of the appointing authority. 
		

		
			8.02       Benefits Committee to Act by Majority Vote, etc. The Benefits Committee shall act by majority vote of all members. All actions, determinations, interpretations and decisions of the Benefits Committee with respect to any matter within its jurisdiction will be conclusive and binding on all persons. Any person may rely conclusively upon any action if certified by the Benefits Committee. 
		

		
			Notwithstanding the above, a member of the Benefits Committee who is also a Participant shall not vote or act upon any matter relating solely or primarily to himself or herself. 
		

		
			8.03       Records and Reports of the Benefits Committee. The Benefits Committee shall keep a record of all of its proceedings and acts, and shall keep such books of account, records and other data as may be necessary for the proper administration of the Plan and file or deliver to Participants and their Beneficiaries whatever reports are required by any regulatory authority. 
		

		
			8.04       Costs and Expenses of Administration. Notwithstanding any provisions of the Plan to the contrary, all clerical, legal and other expenses of the Plan and the Trust, including Trustee’s fees, shall be paid by the Plan, except to the extent the Employer elects to pay such amounts; provided,  however, that if the Employer pays such amounts it shall be reimbursed by the Trust for such amounts unless the Employer elects not to be so reimbursed. 
		

		
			8.05       Indemnification of the Plan Administrator and Assistants. The Employer shall indemnify and defend, to the extent permitted under the By-Laws of the Employer, any Employee or former Employee (i) who serves or has served as a member of the Benefits Committee, (ii) who has been appointed to assist the Benefits Committee in administering the Plan, or (iii) to whom the Benefits Committee has delegated any of its duties or responsibilities against any liabilities, damages, costs and expenses (including attorneys’ fees and amounts paid in settlement of any claims approved by the Employer) occasioned by any act or omission to act in connection with the Plan, if such act or omission to act is in good faith and without gross negligence; provided that such Employee or former Employee is not otherwise indemnified or saved harmless under any liability insurance or other indemnification arrangement. 
		

		
			 
		

		
			ARTICLE IX 
		

		
			CLAIMS PROCEDURE 
		

		
			9.01         Claims Fiduciary. The Plan Administrator will act as Claims Fiduciary, except to the extent that the Plan Administrator has delegated the function to some other person or persons, committee or entity. 
		

		
			Notwithstanding anything in the Plan to the contrary, the Claims Fiduciary shall have total and complete discretion to fulfill its fiduciary responsibilities as it sees fit on a uniform and consistent basis and as it believes a prudent person acting in a like capacity and familiar with such matters would do. 
		

		
			9.02         Claims for Benefits. Claims for benefits under the Plan may be filed with the Plan Administrator on forms supplied by the Employer. For the purpose of this procedure, “claim” means a request for a Plan benefit by a Participant or a Beneficiary of a Participant. If the basis of the claim includes documentation not a part of the records of the Plan or of the Employer, all such documentation must be included with the claim. 
		

		

		

		 

		

			22

		

		

			 

		

 

		
		

		
			9.03          Duty to Keep Plan Administrator Informed of Current Address. Each Participant and Beneficiary must file with the Plan Administrator from time to time his or her post office address and each change thereof. Any communication, statement or notice addressed to a Participant or Beneficiary at his or her last post office address filed with the Plan Administrator, or if no address is filed with the Plan Administrator, then at his or her last post office address as shown on the Employer’s records, will be binding on the Participant and Beneficiary for all purposes of the Plan. Neither the Plan Administrator nor the Employer shall be required to search for or locate a Participant or Beneficiary. 
		

		
			9.04          Failure to Claim Benefits. If the Plan Administrator notifies a Participant or Beneficiary by registered or certified mail at his or her last known address that he or she is entitled to a distribution and also notifies him or her of the provision of this Section, and the Participant or Beneficiary fails to claim his or her benefits under the Plan, the Plan Administrator shall make reasonable efforts to locate such Participant or Beneficiary. If the Participant or Beneficiary fails to claim his or her benefits under the Plan or fails to make his or her or her current address known to the Plan Administrator within three years after such notification, the Plan Administrator, at the end of such three-year period, shall direct that benefits which would have been payable to such Participant or Beneficiary shall be forfeited. In the event that the Participant or Beneficiary is subsequently located, the benefits which were forfeited shall be reinstated, and such reinstatement shall be taken into account in determining the Employer contribution for the Plan Year of the reinstatement. 
		

		
			9.05         Notice of Denial of Claim. If a claim is wholly or partially denied, the Plan Administrator shall notify the claimant of the denial of the claim within a reasonable period of time. Such notice of denial (i) shall be in writing, (ii) shall be written in a manner calculated to be understood by the claimant, and (iii) shall contain (A) the specific reason or reasons for denial of the claim, (B) a specific reference to the pertinent Plan provisions upon which the denial is based, (C) a description of any additional material or information necessary for the claimant to perfect the claim, along with an explanation why such material or information is necessary, and (D) an explanation of the Plan’s claim review procedure. Unless special circumstances require an extension of time for processing the claim, the Plan Administrator shall notify the claimant of the claim denial no later than 90 days after the Plan Administrator’s receipt of the claim. If such an extension is required, written notice of the extension shall be furnished to the claimant prior to the termination of the initial 90-day period. The extension notice shall indicate the special circumstances requiring the extension of time and the date by which the Plan Administrator expects to render the final decision, which date will not be later than 180 days after the Plan Administrator’s receipt of the claim. 
		

		
			9.06          Request for Review of Denial of Claim. Within 120 days of the receipt by the claimant of the written notice of the denial of the claim, or such later time as shall be deemed reasonable in the sole discretion of the Plan Administrator, taking into account the nature of the benefit subject to the claim and any other attendant circumstances, or if the claim has not been granted within a reasonable period of time, the claimant may file a written request with the Plan Administrator to conduct a full and fair review of the denial of the claimant’s claim for benefits. In connection with the claimant’s appeal of the denial of his or her benefit, the claimant may review pertinent documents and may submit issues and comments in writing. 
		

		
			9.07          Decision on Review of Denial of Claim. The Plan Administrator shall deliver to the claimant a written decision on the claim promptly, but not later than 60 days, after the receipt of the claimant’s request for review, except that if there are special circumstances which require an extension of time for processing, the aforesaid 60-day period may be extended to 120 days. Such decision shall (i) be written in a manner calculated to be understood by the claimant, (ii) include specific reasons for the decision, and (iii) contain specific references to the pertinent Plan provisions upon which the decision is based. 
		

		
			9.08          Disability Claims. Notwithstanding anything in this Article IX of Part III of the Plan to the contrary, when a claim under this Article is made in connection with a benefit payable under Section 6.05 of Part I (as a result of a qualifying Participant’s total disability) or is made in connection with a benefit payable under Section 5.04 of Part II (as a result of a qualifying Participant’s Total Disability), solely for purposes of processing such a claim (i) all references in Sections 9.05 and 9.07 of this Part III to “90 days” and “60 days” are deemed to have been replaced with “45 days”, (ii) the reference to “180 days” in Section 9.05 of this Part III is deemed to have been replaced with “75 days”, (iii) the reference to “120 days” in Section 9.07 of this Part III is deemed to have been replaced with “90 days”, (iv) a second, maximum 30 day extension of time will be allowed only under Section 9.05 of this Part III in the case of a claim within this Section, but only if the other requirements for an extension of time to respond described in Section 9.05 of this Part III are satisfied with respect to this second extension, and (v) the claimant will be allowed at least 45 days within which to provide any needed additional information sought in connection with any extension under Sections 9.05 and 9.08 of this Part III. 
		

		

		

		 

		

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			ARTICLE X 
		

		
			AMENDMENT AND TERMINATION 
		

		
			10.01        Amendment of Plan. The right is reserved to the Employer to amend the Plan at any time and from time to time and all parties or any person claiming any interest hereunder shall be bound thereby; except no person having an already vested interest in the Plan shall be deprived of any interest already existing nor have such interest adversely affected. No such amendment shall have the effect of vesting in the Employer any right, title or interest to any assets of the Plan. The decision of the Employer shall be binding upon the Participants and all other persons and parties interested as to whether or not any amendment does deprive a Participant or any other person or adversely affects such interest. No amendment to the Plan (including a change in the actuarial basis for determining optional or early retirement benefits) shall decrease a Participant’s Accrued Benefit or eliminate an optional form of distribution. Notwithstanding the preceding sentence, a Participant’s Accrued Benefit may be reduced to the extent permitted under Code Section 412(c)(8). For purposes of this paragraph, a Plan amendment which has the effect of (i) eliminating or reducing an early retirement benefit or a retirement-type subsidy, or (ii) eliminating an optional form of benefit with respect to benefits attributable to service before the amendment shall be treated as reducing accrued benefits. In the case of a retirement-type subsidy, the preceding sentence shall apply only with respect to a Participant who satisfies (either before or after the amendment) the pre-amendment conditions for the subsidy. In general, a retirement-type subsidy is a subsidy that continues after retirement, but does not include a qualified disability benefit, a medical benefit, or a social security supplement that does not continue after retirement age. Furthermore, no amendment to the Plan shall have the effect of decreasing a Participant’s vested interest determined without regard to such amendment as of the later of the date such amendment is adopted, or becomes effective. Participants shall be notified of any Plan amendments. 
		

		
			In the case of any merger, consolidation with or transfer of assets or liabilities by the Employer to another Plan, each Participant in the Plan on the date of the transaction shall have a benefit in the surviving Plan (determined as if such Plan were terminated immediately after the transaction) at least equal to the benefit to which he or she would have been entitled to receive immediately prior to the transaction if the Plan had been terminated. However, this provision shall not be construed to be a termination or discontinuance of the Plan or to be a guarantee of a specific level of benefits from this Plan. 
		

		
			Notwithstanding the foregoing, a transfer of amounts from this Plan or its related trust to a nonqualified foreign trust as described in Revenue Ruling 2008-40 shall be treated as a distribution from the Plan. 
		

		
			10.02       Employer May Discontinue Plan. The Employer reserves the right at any time to reduce its annual payments, to partially terminate its Plan or to terminate its Plan in its entirety. 
		

		
			In the event of the liquidation of the Employer or the bona fide sale of the controlling interest thereof, the Employer or its successors or assigns shall not be obligated to continue the Plan. 
		

		
			Upon termination of the Employer’s Plan or upon a partial termination of the Plan, each affected Participant shall have a 100% vested and non-forfeitable right to his or her Accrued Benefit to the extent then funded. 
		

		
			In the event of termination or partial termination of the Employer’s Plan, the assets of the Plan then available to provide benefits shall be applied in accordance with ERISA Section 4044 and Rules and Regulations promulgated thereunder, in accordance with the following order of priority; provided,  however, that no benefits being provided to former Participants or their Beneficiaries by the Insurer shall be canceled. 
		

		
			(a)       First, to provide that portion of each affected Participant’s Accrued Benefit which is derived from any mandatory Employee contributions. 
		

		
			(b)       Second, to provide, in the case of retirement income benefits of each affected Participant or Beneficiary: 
		

		
			(i)       Annuity benefits which were in pay status for at least the three-year period ending on the date of Plan termination; and 
		

		
			(ii)      Annuity benefits which would have been in pay status during the three-year period ending on the date of Plan termination, had a Participant eligible to retire at the beginning of such three-year period retired on the date of Plan termination. 
		

		

		

		 

		

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			The level of benefits allocated to this priority class shall be determined on the basis of the Plan’s provisions which were in effect at any time during the five-year period ending on the date of Plan termination under which the annuity benefits would be the least. Additionally, the level of such benefits is limited to the lowest level which was, or could have been, in pay status during the three- year period ending on the date of Plan termination (but, in the case of a benefit which would have been in pay status, the amount of the benefit, but not the entitlement to the benefit, shall be determined using the age, service and other relevant factors for computing the benefit under the Plan with respect to the Participant as of the date of Plan termination). 
		

		
			(c)       Third, to provide all other benefits guaranteed to affected Participants under Title IV of ERISA and Rules and Regulations promulgated thereunder (determined as if the insurance limits provided under the Act for benefits payable to one person with respect to more than one Participant or from more than one terminated Plan and the insurance limits on benefits payable to a substantial owner all were not applicable). 
		

		
			(d)       Fourth, to provide all other non-forfeitable benefits accrued by affected Participants under the Plan. 
		

		
			(e)       Fifth, to provide all other benefits accrued by affected Participants under the Plan. 
		

		
			(f)       Any residual assets of the Plan remaining after distribution in accordance with this Article shall be distributed to the Employer provided that all liabilities of the Plan to Participants and their Beneficiaries have been satisfied. 
		

		
			Notwithstanding anything in this Section to the contrary, in the event of a partial termination of the Plan, this Section shall be applicable only to those Participants and their Beneficiaries affected by the partial termination. 
		

		
			 
		

		
			10.03       Distribution of Benefits Upon Plan Termination. Subject to Article IV (Pre-Termination Benefit Restrictions) and upon approval of the Pension Benefit Guaranty Corporation (“PBGC”), when required, upon a termination or partial termination of the Plan, benefits shall be distributed to affected Participants in any manner which the Plan Administrator deems to be in the best interests of the Participants which is acceptable under applicable PBGC and Internal Revenue Service laws, Rules and Regulations. Any such distribution may include a lump sum payment, deferment of the distribution or the distribution of an annuity contract without life insurance, immediate or deferred, which by its terms may not be sold, assigned discounted or pledged as collateral for a loan or as security for the performance of an obligation or for any other purpose to any party other than the issuer thereof. Spousal consent shall be required for distributions made on account of Plan termination. In no event shall the payment of benefits be deferred beyond the Participant’s Normal Retirement Date. 
		

		
			10.04       Return of Employer Contributions Under Special Circumstances.  
		

		
			Notwithstanding any provisions of this Plan to the contrary: 
		

		
			(a)       Any monies or other Plan assets attributable to any contributions made by the Employer to the Plan because of a mistake of fact must be returned to the Employer within one year after the date of contribution. 
		

		
			(b)       Any monies or other Plan assets attributable to any contribution made by the Employer which is conditional on the deductibility of such contribution must be refunded to the Employer, to the extent the deduction is disallowed, within one year after the date of such disallowance. 
		

		
			ARTICLE XI 
		

		
			MISCELLANEOUS 
		

		
			11.01       Protection of Employee Interest. No Participant or Beneficiary shall have the right to assign, pledge, alienate or convey any right, benefit or payment to which he or she shall be entitled in accordance with the provisions of the Plan, and any such attempted assignment, pledge, alienation or conveyance shall be null and void and of no effect. To the extent permitted by law, none of the benefits, payments, proceeds or rights herein created and provided for shall in any way be subject to any debts, contracts or engagements of any Participant or Beneficiary, as herein before described, nor to any suits, actions or other judicial process to levy upon or attach the same for the payment thereof; provided,  however, that this provision does not preclude the Plan Administrator from complying with the terms of a Qualified Domestic Relations Order. 
		

		
			11.02       USERRA Compliance. Notwithstanding any provisions of this Plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with the rules and requirements of the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”) and Code Section 414(u). 
		

		

		

		 

		

			25

		

		

			 

		

 

		
		

		
			(a)       Differential Wage Payments. For Plan Years beginning after December 31, 2008, (i) an individual receiving a differential wage payment (as defined by Code Section 3401(h)(2)), shall be treated as an employee of the employer making the payment, (ii) the differential wage payment shall be treated as compensation, the the differential wage payment shall be treated as compensation, for purposes of Code Section 415(c)(3) and Treasury Regulation Section 1.415(c)-2 (e.g., for purposes of Code Section 415, top-heavy provisions of Code Section 416, determination of highly compensated employees under Code Section 414(q), and applying the 5% gateway requirement under the Code Section 401(a)(4) regulations), and (iii) the Plan shall not be treated as failing to meet the requirements of any provision described in Code Section 414(u)(1)(C) by reason of any contribution or benefit which is based on the differential wage payment. Subparagraph (iii) in the foregoing sentence shall apply only if all employees of the Employer performing service in the uniformed services described in Code Section 3401(h)(2)(A) are entitled to receive differential wage payments (as defined in Code Section 3401(h)(2)) on reasonably equivalent terms and, if eligible to participate in a retirement plan maintained by the employer, to make contributions based on the payments on reasonably equivalent terms (taking into account Code Sections 410(b)(3), (4), and (5)). 
		

		
			(b)      Death Benefits Under USERRA. Effective for deaths occurring on or after January 1, 2007, in the case of a Participant who dies while performing qualified military service as defined in Code Section 414(u), the survivors of the Participant are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the Plan had the Participant resumed and then terminated employment on account of death. Moreover, the Plan will credit the Participant’s qualified military service as service for vesting purposes, as though the Participant had resumed employment under USSERRA immediately prior to the Participant’s death. Moreover, the Plan will credit the Participant’s qualified military service as service for vesting purposes, as though the Participant had resumed employment under USSERRA immediately prior to the Participant’s death. 
		

		
			11.03       Meaning of Words Used in Plan. Wherever any words are used herein in the masculine gender, they shall be construed as though they were also used in the feminine or neuter gender in all cases where they would so apply. Wherever any words are used herein in the singular form, they shall be construed as though they were also used in the plural form in all cases where they would so apply. 
		

		
			Titles used herein are for general information only and this Plan is not to be construed by reference thereto. 
		

		
			11.04       Plan Does Not Create or Modify Employment Rights. The Plan shall not be construed as creating or modifying any contract of employment between the Employer and any Participant. All Employees shall be subject to discharge to the same extent that they would have been if the Plan had never been adopted. 
		

		
			11.05       Massachusetts Law Controls. This Plan shall be governed by the laws of the Commonwealth of Massachusetts to the extent that they are not pre-empted by the laws of the United States of America. 
		

		
			 
		

		
			11.06       Payments to come from Plan Assets. All benefits and amounts payable under the Plan shall be paid or provided for solely from the assets of the Plan, and neither the Employer nor the Plan Administrator assumes any liability or responsibility therefor. 
		

		
			11.07       Receipt and Release for Payments. Any payment to any Participant, his or her legal representative, Beneficiary, or to any guardian, custodian or committee appointed for such Participant or Beneficiary in accordance with the provisions of this Plan, shall, to the extent thereof, be in full satisfaction of all claims hereunder against the Employer and the Insurer, any of whom may require such Participant, legal representative, Beneficiary, guardian, custodian or committee, as a condition precedent to such payment, to execute a receipt and release thereof in such form as shall be determined by the Employer or Insurer. 
		

		
			11.08       Mandatory Withholding on Eligible Rollover Distributions. Except as provided in Code Section 3405 and in rules and regulations promulgated thereunder, the Employer is required to withhold 20% on any portion of an eligible rollover distribution not paid directly to an eligible retirement plan. 
		

		
			11.09       Payment under Qualified Domestic Relations Orders. Notwithstanding any provisions of the Plan to the contrary, if there is entered any Qualified Domestic Relations Order that affects the payment of benefits hereunder, such benefits shall be paid in accordance with the applicable requirements of such Order, provided that such Order (i) does not require the Plan to provide any type or form of benefits, or any option that is not otherwise provided hereunder, (ii) does not require the Plan to provide increased benefits, and (iii) does not require the payment of benefits to an alternate payee which are required to be paid to another alternate payee under another order previously determined to be a Qualified Domestic Relations Order. 
		

		
			The Plan Administrator shall establish reasonable procedures to determine whether an order or other decree is a Qualified Domestic Relations Order and to administer distributions under such orders. 
		

		

		

		 

		

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		To the extent required or permitted by any such Order, at any time on or after the date the Plan Administrator has determined that the Order is a Qualified Domestic Relations Order, the alternate payee shall have the right to request the Plan Administrator to commence distribution of benefits under the Plan (including any single sum cash-out that would be available if the Participant were the payee and entitled to a benefit payment on account of termination from service) regardless of whether the Participant is otherwise entitled to a distribution at such time under the Plan. 
		

		
			11.10       Electronic Communications. Effective for Plan Years beginning on or after January 1, 2007, any electronic communications made by the Plan to Participants in regards to eligible rollover distribution tax notices, Participant consents to distributions, and tax withholding notices shall comply with the requirements contained in Treasury Regulation Section 1.401(a)-21, in addition to all otherwise applicable requirements relating to the specific communication. 
		

		
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			EXECUTED this 28th day of January, 2011 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						The Hanover Insurance Company

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						    /s/ Lorna Stearns

					
						 

				
	
					
						 

					
					
						 

					
					
						Name: Lorna Stearns

				
	
					
						 

					
					
						 

					
					
						Title: Vice President

				

		
			 
		

		

		

		 

		

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			THE HANOVER INSURANCE GROUP 
		

		
			cash balance pension PLAN 
		

		
			FIRST AMENDMENT 
		

		
			This First Amendment is executed by The Hanover Insurance Company, a New Hampshire corporation (the “Company”). 
		

		
			WHEREAS, the Company sponsors The Hanover Insurance Group Cash Balance Pension Plan (the “Plan”) and amended and restated the Plan generally effective January 1, 2010; and 
		

		
			WHEREAS, the Company has the authority to amend the Plan pursuant to Section 10.01 of Part III of the Plan; and 
		

		
			WHEREAS, the Company desires to further amend the Plan. 
		

		
			NOW, THEREFORE, the Plan is amended effective for Plan Years beginning on or after January 1, 2010, except as otherwise indicated, as follows: 
		

		
			1.           The reference to “Article IX” in the first sentence of Section 6.06 of Part I of the Plan is changed from “Article IX” to “Article VIII”. 
		

		
			2.           Section 6.09(b) of Part I of the Plan is deleted in its entirety and the following new Section 6.09(b) is inserted in lieu thereof: 
		

		
			“The benefit suspended shall be equal to the portion of the Employee’s or Pensioner’s monthly annuity benefit derived from Employer contributions, including any temporary early retirement supplement; provided, however, that earnings credits provided under Section 4.03(a) of Part I of the Plan shall not be suspended by operation of this Section 6.09 of Part I of the Plan.” 
		

		
			3.           The last sentence of Section 11.02 of Part III of the Plan is deleted as duplicative of the immediately preceding sentence. 
		

		
			This First Amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment and, except as hereby amended; the Plan shall remain in full force and effect. 
		

		
			IN WITNESS WHEREOF, this First Amendment has been executed this 21st day of December, 2011. 
		

		
			 
		

			
					
						

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						THE HANOVER INSURANCE COMPANY

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
					
						  

					
						 

				
	
					
						 

					
					
						 

					
					
						Authorized Representative

				

		
			 
		

		
			 
		

		

		

		 

		

			1

		

		

			 

		

 

		THE HANOVER INSURANCE GROUP 
		

		
			CASH BALANCE PENSION PLAN 
		

		
			SECOND AMENDMENT 
		

		
			This Second Amendment is executed by The Hanover Insurance Company, a New Hampshire corporation (the “Company”). 
		

		
			WHEREAS, the Company sponsors The Hanover Insurance Group Cash Balance Pension Plan (the “Plan”); and 
		

		
			WHEREAS, the Plan consists of the following three component parts, each of which is set forth in the same document: (i) Part I, which provides a cash balance and pension benefit which were formerly provided under a plan known as “The Allmerica Financial Cash Balance Pension Plan”, and then “The Hanover Insurance Group Cash Balance Pension Plan”, (ii) Part II, which provides a pension benefit which was formerly provided under a plan known as “The Allmerica Financial Agents’ Pension Plan”, and (iii) Part III, which contains Plan terms applicable to each of Part I and Part II; and 
		

		
			WHEREAS, the Plan was most recently amended and restated generally effective January 1, 2010, and such restatement has been amended once; and 
		

		
			WHEREAS, the Company has the authority to amend the Plan at any time pursuant to Section 10.01 of Part III of the Plan; and 
		

		
			WHEREAS, the Company desires to amend the Plan to encourage payment of the vested deferred benefits of certain terminated former participants by adding the option to make qualifying mandatory cashout distributions and related changes and by adding for only a stated, limited period of time certain voluntary lump sum optional forms. 
		

		
			NOW, THEREFORE, the Plan is amended, effective as provided below, as follows: 
		

		
			Part I is amended as follows: 
		

		
			1.             Effective on October 18, 2012, Section 2.02 of Part I of the Plan is deleted in its entirety, and the following new Section 2.02 is inserted in lieu thereof: 
		

		
			“2.02 “Actuarial Equivalent” means a benefit having the same value as the benefit or benefits otherwise payable. Except as otherwise provided in this Section, the present value of any benefit determined under the terms of Part I of the Plan will be the actuarial equivalent of the no-death benefit life annuity retirement benefit specified in Section 6.01. 
		

		
			Actuarial Equivalent life annuity settlements of Participant Projected Account Balances or of optional life annuity Top Heavy Plan benefits will be computed utilizing (i) the Code Section 417 Mortality Table for determining the amount payable to a Participant having an annuity starting date on or after January 1, 2004, and (ii) the Code Section 417 Interest Rate for determining the amount payable to a Participant having an annuity starting date that occurred from January 1, 2004 through December 31, 2007, and the Code Section 417 Applicable Interest Rate beginning January 1, 2008 for determining the amount payable to a Participant having an annuity starting date on or after January 1, 2008. Except as provided otherwise in this Section, Actuarial Equivalents of the normal form of benefits payable when and as provided under Section 6.06(viii) and Section 8.02(z) will be computed using the Code Section 417 Mortality Table and the Code Section 417 Applicable Interest Rate. 
		

		
			Optional life annuity settlements of Grandfathered Benefits and of the Actuarial Equivalent monthly life annuity derived from a Participant’s Projected Account Balance will be computed utilizing the 1983 Group Annuity Table with Projection H, with mortality rates based on calendar year of birth of 1930 and interest at the rate of 7% per annum. Adjustment factors used to determine optional forms of Grandfathered Benefits and of the Actuarial Equivalent monthly life annuity derived from a Projected Account Balance are included in Exhibit A, attached hereto and made a part of Part I of the Plan. 
		

		
			Adjustment factors for optional Grandfathered Benefits not illustrated and of the optional annuities for the Actuarial Equivalent monthly life annuity derived from a Projected Account Balance not included in the preceding paragraph, if any, will be computed on an actuarial basis consistent with that used in computing the factors shown in Exhibit A. 
		

		
			The present value (including, but not limited to, for purposes of Section 7.01(a)(i)(B), Section 7.01 (a)(ii)(B), determining eligibility for cashout distributions under Sections 6.06 and 8.02 and determining the amount of any lump sum distribution of a Grandfathered Benefit or a benefit for Non-Key Employee Participants in a Top Heavy Plan) shall be determined on the basis of (i) the mortality rates specified above and an interest rate of 7% per annum, or (ii) the Code Section 417 Mortality Table and the Code Section 417 Interest Rate (or for determining the amount payable to a Participant having an annuity starting date on and after January 1, 2008, the Code Section 417 Applicable Interest Rate), whichever produces the greater benefit. 
		

		

		

		 

		

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		The preceding paragraphs shall not apply to the extent they would cause the Plan to fail to satisfy the requirements of Article IV of Part III of the Plan (Limitations on Benefits) or Section 2.03 of Part III of the Plan (Minimum Benefits for Top Heavy Benefits). 
		

		
			For purposes of Part I of the Plan, (a) the “Code Section 417 Mortality Table” means the applicable mortality table prescribed by the Secretary of the Treasury pursuant to Code section 417(e)(3), as in effect from time to time; provided,  however, that notwithstanding the preceding provisions of this paragraph, for distributions commencing on or after December 31, 2002, and prior to January 1, 2008, the Code Section 417 Mortality Table means the Table set forth in Revenue Ruling 2001-62 and for purposes of determining the amount payable to a Participant with an annuity starting date on or after January 1, 2008, the Code Section 417 Mortality Table means the Table set forth in Revenue Ruling 2007-67 or such other Table as may be prescribed by the Secretary of the Treasury pursuant to Code section 417(e)(3); (b) for periods beginning on and after January 1, 2004, the “Code Section 417 Interest Rate” means, for the Plan Year which contains the annuity starting date for the distribution, the annual rate of interest on 30-year Treasury securities in effect for the second month immediately preceding the first day of the Plan Year (e.g., November 2006 for the 2007 Plan Year), and (c) for periods beginning on and after January 1, 2008, the “Code Section 417 Applicable Interest Rate” means, for the Plan Year which contains the annuity starting date for the distribution, the applicable interest rate described by Code section 417(e) after its amendment by the Pension Protection Act of 2006, which rate more specifically shall be the adjusted first, second, and third segment rates applied under rules similar to the rules of Code section 430(h)(2)(C) for the lookback month used to determine the previously applicable interest rate on 30-year Treasury securities (e.g., November 2009 for the 2010 Plan Year) or for such other time as the Secretary of the Treasury may by regulations prescribe. For purposes of determining the Code Section 417 Applicable Interest Rate, the first, second, and third segment rates are the first, second, and third segment rates which would be determined under Code section 430(h)(2)(C) if: 
		

		
			(i)      Code section 430(h)(2)(D) were applied by substituting the average yields for the month described in clause (ii) below for the average yields for the 24-month period described in such Code section, and 
		

		
			(ii)     Code section 430(h)(2)(G)(i)(II) were applied by substituting “Section 417(e)(3)(A)(ii)(II) for “Section 412(b)(5)(B)(ii)(II)”, and 
		

		
			(iii)    The applicable percentage under Code section 430(h)(2)(G) is treated as being 20% in 2008, 40% in 2009, 60% in 2010, and 80% in 2011.” 
		

		
			2.             Effective on and after January 1, 2013, the last sentence of the second paragraph of Section 2.02 of Part I of the Plan, as added by this Amendment, is deleted in its entirety. 
		

		
			3.            Effective on and after January 1, 2010, Section 4.01 of Part I of the Plan is amended to delete the third sentence of Section 4.01 and to substitute the following as the new third sentence of Section 4.01, as follows: 
		

		
			“The resultant value determined at any time, after the operation of Sections 4.02, 4.03, and 4.04, shall be the Participant’s “Account Balance.”” 
		

		
			4.             Effective solely for the period beginning October 18, 2012 and ending December 31, 2012, Section 6.06(v) of Part I of the Plan is deleted in its entirety, and the following new Section 6.06(v) is inserted in lieu thereof: 
		

		
			“(v)          Notwithstanding anything in Part I of the Plan to the contrary, a single lump sum payment in an amount equal to the Participant’s vested Account Balance on the Determination Date; provided,  however, that except as provided in (vi) below, in (vii) below, and during the period from October 18, 2012 through December 31, 2012, as provided in (viii) below or in Section 8.02(z), this form of payment shall not be available with respect to the Participant’s vested Accrued Benefit attributable to the Participant’s Grandfathered Benefit, if any, on the Determination Date.” 
		

		
			 
		

		
			5.            Effective on and after January 1, 2013, Section 6.06(v) of Part I of the Plan, as changed by this Amendment, is deleted in its entirety, and the following new Section 6.06(v) is inserted in lieu thereof: 
		

		
			“(v)          Notwithstanding anything in Part I of the Plan to the contrary, a single lump sum payment in an amount equal to the Participant’s vested Account Balance on the Determination Date; provided,  however, that except as provided in (vi) below and (vii) below, this form of payment shall not be available with respect to the Participant’s vested Accrued Benefit attributable to the Participant’s Grandfathered Benefit, if any, on the Determination Date. In the event a Participant elects to have his or her vested Account Balance on the Determination Date payable in a lump sum under this (v), the portion of his or her Accrued Benefit attributable to his or her Grandfathered Benefit, if any, shall be paid only in accordance with the otherwise applicable provisions of this Article VI of Part I of the Plan.” 
		

		

		

		 

		

			3

		

		

			 

		

 

		6.            Effective solely for the period beginning October 18, 2012 and ending December 31, 2012, Section 6.06(vi) of Part I of the Plan is deleted in its entirety, and the following new Section 6.06(vi) is inserted in lieu thereof: 
		

		
			“(vi)          If the present value of a Participant’s vested Grandfathered Benefit, if any, on the Determination Date does not exceed $5,000, an immediate single sum payment in an amount equal to such present value.” 
		

		
			7.            Effective on and after January 1, 2013, Section 6.06(vi) of Part I of the Plan, as changed by this Amendment, is deleted in its entirety, and the following new Section 6.06(vi) is inserted in lieu thereof: 
		

		
			“(vi)           If the present value of a Participant’s vested Grandfathered Benefit, if any, on the Determination Date does not exceed $5,000, an immediate single sum payment in an amount equal to such present value. If the present value of a Participant’s vested Grandfathered Benefit exceeds $5,000, only annuity options (i) through (iv) above shall be available with respect to such vested Grandfathered Benefit.” 
		

		
			8.            Effective on October 18, 2012, Section 6.06 of Part I of the Plan is amended to insert the following immediately after Section 6.06(vi), as follows: 
		

		
			“(vii)         Notwithstanding anything in Part I of the Plan to the contrary except Section 6.10, for involuntary cashouts paid on or after December 1, 2012, an immediate single lump sum payment of the present value of the Former Participant’s vested Accrued Benefit as of December 1, 2012 (or after December 1, 2012, on the Determination Date) will be paid to a Former Participant (other than a Former Participant (a) who is a participant in The Hanover Excess Benefit Retirement Plan, or (b) whose Accrued Benefit has been restricted by an approved Qualified Domestic Relations Order) who is not an Employee of the Employer or an Affiliate if the present value of the Former Participant’s vested Accrued Benefit, if any, on December 1, 2012 (or after December 1, 2012, on the Determination Date) does not exceed $5,000. Consent to this involuntary cashout from the Former Participant will not be required, and spousal consent to this involuntary cashout will not be required in the case of a married Former Participant. For purposes of Sections 6.06 and 8.02, an “involuntary cashout” is a payment under Section 6.06(vii) or its counterpart in Section 8.02, as appropriate. 
		

		
			(viii)          Notwithstanding anything in Part I of the Plan to the contrary, for distributions elected under this (viii) by a qualified Former Participant during the period beginning October 18, 2012 and ending at midnight on November 30, 2012, either an immediate single sum payment of the present value of the qualified Former Participant’s vested Accrued Benefit in an amount equal to such present value as of the Determination Date, or one of the annuity settlement options described in (i) through (iv) above, to the extent otherwise available, payable beginning immediately on the Determination Date (except that the only immediate annuity settlement options available under this (viii) to a qualified Former Participant whose vested Accrued Benefit is only a Grandfathered Benefit and who is not eligible for early retirement under Section 6.02 or 6.03 on the Determination Date will be the annuity settlement option described in (i) above (and only with a 50% survivor option), a Qualified Joint and Survivor Annuity, and a single life annuity). An election by a qualified Former Participant under this (viii) may not be revoked after December 1, 2012. Solely for purposes of calculating a Former Participant’s vested Accrued Benefit under this (viii), an early retirement subsidy or subsidies available for the qualified Former Participant under Section 6.02 or Section 6.03 on the Determination Date or after the Determination Date upon reaching his or her 55th birthday (or later) after the Determination Date shall be included in the vested Accrued Benefit under this (viii). For purposes of this (viii) and Section 8.02(z), a “qualified Former Participant” is (1) a Former Participant (a) who was a Former Participant on July 1, 2012 and on December 1, 2012, (b) who is entitled to a vested, deferred Normal Retirement Benefit, (c) who has not received any portion of his or her vested, deferred Grandfathered Benefit by December 1, 2012, (d) who is not a participant in The Hanover Excess Benefit Retirement Plan on December 1, 2012, (e) the Actuarial Equivalent present value of whose vested Accrued Benefit on December 1, 2012 exceeds $5,000 but does not exceed $15,000, (f) whose last day as an Employee of an Employer or an Affiliate was before July 1, 2012, (g) who is not a named party in a Domestic Relations Order under review on the Determination Date by the Plan to determine whether it will be a Qualified Domestic Relations Order, and (h) who has not become eligible to begin receiving his or her vested deferred Normal Retirement Benefit (other than his or her Account Balance) from the Plan, and (2) an alternate payee of a qualified Former Participant, but only if the combined present values of the vested Accrued Benefits of the qualified Former Participant and his or her alternate payee do not exceed $15,000.” 
		

		

		

		 

		

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		9.             Effective on and after January 1, 2013, Section 6.06(viii) of Part I of the Plan, as added by this Amendment, is deleted in its entirety. 
		

		
			 
		

		
			10.           Effective on and after December 1, 2012, Section 6.06 of Part I of the Plan is amended to delete the last five paragraphs of Section 6.06 and to substitute the following as the new last paragraphs of Section 6.06, as follows: 
		

		
			“Unless the Participant elects otherwise, distribution of benefits will begin no later than the 60th day after the later of the close of the Plan Year in which: 
		

		
			(i)       the Participant attains Normal Retirement Age; or 
		

		
			(ii)      the Participant terminates service with the Employer. 
		

		
			Notwithstanding the foregoing, the failure of a Participant and spouse (or where either the Participant or the spouse has died, the survivor) to consent to a distribution (other than an involuntary cashout) when a benefit is “immediately distributable” (as described below) shall be deemed to be an election to defer commencement of payment of any benefit sufficient to satisfy this Section 6.06 of Part I of the Plan (and provisions of Article III of Part III of the Plan). In no event will benefits begin to be distributed (other than as an involuntary cashout) prior to the later of Age 62 or Normal Retirement Age without the consent of the Participant. The consent of the Participant’s spouse will also be required for any such distribution (other than an involuntary cashout) unless the benefit is paid in the form of a Qualified Joint and Survivor Annuity. Any spousal consent shall satisfy the requirements of Section 6.07. 
		

		
			If the Accrued Benefit is immediately distributable, the Participant and the Participant’s spouse (or where either the Participant or the spouse has died, the survivor) must consent to any distribution (other than as an involuntary cashout) of such Accrued Benefit. Needed consents of the Participant and the Participant’s spouse shall be obtained in writing within the 90-day period (180-day period for Plan Years beginning January 1, 2007 and thereafter) ending on the annuity starting date. The “annuity starting date” is the first day of the first period for which an amount is paid as an annuity or any other form. The Plan Administrator shall notify the Participant and the Participant’s spouse of the right to defer any distribution (other than an involuntary cashout) until the Participant’s Accrued Benefit is no longer immediately distributable. Such notification shall include a general description of the material features, and an explanation of the relative values, of the optional forms of benefit available under the Plan in a manner that would satisfy the notice requirements of Section 417(a)(3) of the Code, and shall be provided no less than 30 days and no more than 90 days (180 days for Plan Years beginning January 1, 2007 and thereafter) prior to the annuity starting date; provided, however, that the minimum 30 day notice period described in this sentence may be waived by the Participant’s written waiver given after notice to the Participant has described that the Participant was allowed at least 30 days to consider his choice under this Section and that the Participant was allowed to revoke his waiver under this Section at any time through his or her annuity starting date. 
		

		
			Notwithstanding the foregoing, only the Participant need consent to the commencement of a distribution in the form of a Qualified Joint and Survivor Annuity while the Accrued Benefit is immediately distributable. Neither the consent of the Participant nor the Participant’s spouse shall be required to the extent that a distribution is required to satisfy Section 401(a)(9) or Section 415 of the Code. 
		

		
			 
		

		
			An Accrued Benefit is “immediately distributable” if any part of the Accrued Benefit could be distributed to the Participant (or surviving spouse) before the Participant attains (or would have attained if not deceased) the later of Normal Retirement Age or Age 62. 
		

		
			Notwithstanding the above the entire interest of a Participant or a Beneficiary must be distributed in accordance with the minimum required distribution rules set forth in Article III of Part III of the Plan.” 
		

		
			11.           Effective for annuity starting dates occurring on and after December 1, 2012, Section 6.10(a) of Part I of the Plan is deleted in its entirety, and the following new Section 6.10(a) is substituted in lieu thereof: 
		

		

		

		 

		

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			“(a)       Notwithstanding any provision of Part I of the Plan to the contrary that would otherwise limit a distributee’s election under this Article or under Articles VII and VIII other than this Section 6.10(a), a distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover; provided, however, that if the Actuarial Equivalent present value of a distributee’s vested Accrued Benefit does not exceed $1,000, the distributee does not have to be allowed the eligible rollover election described in this sentence. If the Actuarial Equivalent present value of a Participant’s Accrued Benefit exceeds $1,000 and does not exceed $5,000 and the Participant does not elect a distribution or a rollover, the Plan shall automatically distribute the Participant’s Accrued Benefit, in a direct rollover, to an eligible individual retirement plan (a “Rollover IRA”) for the benefit of such Participant and pursuant to a written agreement with the Rollover IRA provider that provides (i) the amount rolled over to the Rollover IRA shall be invested in a manner designed to preserve principal and provide a reasonable rate of return and liquidity; (ii) all fees and expenses attendant to a Rollover IRA shall not exceed the fees and expenses charged by the Rollover IRA provider for comparable IRAs established for reasons other than receipt of a rollover distribution; and (iii) the Participant on whose behalf the automatic rollover is made under this Section shall have the right to enforce the terms of the written agreement establishing the Rollover IRA, with regard to his or her rolled over funds, against the Rollover IRA provider. All fees and expenses attendant to the Rollover IRA shall be allocated to the Rollover IRA.” 
		

		
			12.           Effective on October 18, 2012, Section 8.02 of Part I of the Plan is amended to delete the last three paragraphs of Section 8.02 in their entirety and to substitute the following as the last paragraphs of Section 8.02, as follows: 
		

		
			“Notwithstanding the foregoing, a Participant who is entitled to a deferred Normal Retirement Benefit may elect to receive his or her vested Account Balance on the Determination Date in a single lump sum. In addition, if a Participant makes an election described in the immediately preceding sentence and if the present value of the portion of the vested Accrued Benefit attributable to such Participant’s vested Grandfathered Benefit does not exceed $5,000, the Participant may elect to receive such portion of his or her vested Accrued Benefit attributable to the Grandfathered Benefit in a lump sum. Any such Participant may elect to receive either such lump sum at any time after separation from service and, in the case of a single lump sum distribution of his or her vested Account Balance, must receive such benefit no later than the time at which benefits attributable to the Participant’s Grandfathered Benefit, if any, commences. Any such election shall be subject to spousal consent in the case of a married Participant. Any spousal consent must satisfy the requirement of Section 6.07. 
		

		
			Notwithstanding anything in Part I of the Plan to the contrary except Section 6.10, effective for involuntary cashouts paid on or after December 1, 2012, a Former Participant (other than a Former Participant (a) who is a participant in The Hanover Excess Benefit Retirement Plan, or (b) whose Accrued Benefit has been restricted by an approved Qualified Domestic Relations Order) who is not an Employee of the Employer or an Affiliate will be paid the present value of his or her vested Accrued Benefit on December 1, 2012 (or after December 1, 2012, on the Determination Date) in an immediate lump sum if the present value of his or her vested Accrued Benefit, if any, on December 1, 2012 (or after December 1, 2012, on the Determination Date) does not exceed $5,000. Consent to this involuntary cashout by the Former Participant will not be required, and spousal consent to this involuntary cashout will not be required in the case of a married Former Participant. 
		

		
			Notwithstanding anything in Part I of the Plan to the contrary, an actively employed Participant’s Accrued Benefit shall become 100% vested and non-forfeitable upon the earliest of (i) the date of such Participant’s death; (ii) the date such a Participant becomes Totally Disabled (within the meaning of Section 6.05 of Part I of the Plan); or (iii) the date such a Participant attains his or her Normal Retirement Age. 
		

		
			Any distributions under this Article shall be subject to the requirements of Sections 6.06 and 6.07, including the requirement that a Participant shall be eligible to receive any form of distribution provided for under Section 6.06 of Part I of the Plan at such time as he or she is eligible to receive his or her vested Account Balance in a lump sum, except to the extent expressly provided otherwise in this Section. 
		

		

		

		 

		

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			(z)         Notwithstanding anything in Part I of the Plan to the contrary, effective for distributions elected under this Section 8.02(z) by a qualified Former Participant during the period beginning October 18, 2012 and ending at midnight on November 30, 2012, a qualified Former Participant (as defined in Section 6.06(viii)) may elect to receive his or her vested Accrued Benefit attributable to such Former Participant’s vested Grandfathered Benefit either in an immediate lump sum or in one of the annuity settlement options described in Section 6.06(i) through Section 6.06(iv), to the extent otherwise available, payable beginning immediately on the Determination Date; provided, however, that a qualified Former Participant electing under this Section 8.02(z) to receive an immediate payment of some or all of his or her vested Accrued Benefit attributable to his vested Grandfathered Benefit must also make a qualified election under this Section to receive his or her vested Account Balance in the same immediate payment form as part of the same distribution, and the only immediate annuity settlement options available under this Section 8.02(z) to a qualified Former Participant whose vested Accrued Benefit is only a Grandfathered Benefit and who is not eligible for early retirement under Section 6.02 or Section 6.03 on the Determination Date will be the annuity settlement option described in Section 6.06(i) (and only with a 50% survivor option), a Qualified Joint and Survivor Annuity, and a single life annuity. An election by a qualified Former Participant under this Section 8.02(z) may not be revoked after December 1, 2012. Any spousal consent must satisfy the requirements of Section 6.07. Solely for purposes of calculating a Former Participant’s vested Accrued Benefit under this Section 8.02(z), an early retirement subsidy or subsidies available for the qualified Former Participant under Section 6.02 or Section 6.03 on the Determination Date or after the Determination Date upon reaching his or her 55th birthday (or later) after the Determination Date shall be included in the vested Accrued Benefit under this Section 8.02(z).” 
		

		
			13.           Effective on and after January 1, 2013, Section 8.02(z) of Part I of the Plan, as added by this Amendment, is deleted in its entirety. 
		

		
			14.          Effective on and after January 1, 2010, Section 8.07(b) of Part I of the Plan is amended to delete the first sentence of Section 8.07(b) and to substitute the following as the new first sentence of Section 8.07(b), as follows: 
		

		
			“In the case of the distribution of the present value of a Participant’s or Former Participant’s vested Accrued Benefit in accordance with Sections 6.06 or 8.02, the Participant’s Accrued Benefit described in Subsections 2.01(a) and (b) (including all optional forms of benefits and subsidies relating to such benefits) shall be restored if he or she is subsequently an Employee and repays the amount distributed plus interest, compounded annually from the date of distribution at the rate of 5 percent.” 
		

		
			Part II is amended as follows: 
		

		
			1.            Effective on October 18, 2012, the second paragraph of Section 2.02 of Part II of the Plan is deleted in its entirety, and the following is inserted in lieu thereof as the new second paragraph of Section 2.02: 
		

		
			“Actuarial Equivalent life annuity settlements of optional life annuity Top Heavy Plan benefits will be computed utilizing (i) the Code Section 417 Mortality Table for determining the amount payable to a Participant having an annuity starting date on or after January 1, 2004, and (ii) the Code Section 417 Interest Rate for determining the amount payable to a Participant having an annuity starting date that occurred from January 1, 2004 through December 31, 2007, and the Code Section 417 Applicable Interest Rate for determining the amount payable to a Participant having an annuity starting date on or after January 1, 2008. Except as provided otherwise in this Section, Actuarial Equivalents of the normal form of benefits payable when and as provided under Section 5.05(f) and Section 7.02 will be computed using the Code Section 417 Mortality Table and the Code Section 417 Applicable Interest Rate.” 
		

		
			 
		

		
			2.             Effective on and after January 1, 2013, the last sentence of the second paragraph of Section 2.02, as added by this Amendment, is deleted in its entirety. 
		

		
			3.             Effective on October 18, 2012, Section 5.05 of Part II of the Plan is amended to insert the following immediately after Section 5.05(e) as new Section 5.05(f): 
		

		

		

		 

		

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			“(f)       Notwithstanding anything in Part II of the Plan to the contrary, for distributions elected under this Section 5.05(f) by a qualified Former Participant during the period beginning October 18, 2012 and ending at midnight on November 30, 2012, a qualified Former Participant will be paid either an immediate single sum payment of the present value of the qualified Former Participant’s vested Accrued Benefit in an amount equal to such present value as of the Determination Date, or one of the annuity settlement options described in Sections 5.05(a) through 5.05(d) above, to the extent otherwise available, payable beginning immediately on the Determination Date (except that the only immediate annuity settlement options available under this Section 5.05(f) to a qualified Former Participant whose vested Accrued Benefit is only an Accrued Benefit accrued only under Part II of the Plan (and its predecessors) and who is not eligible for early retirement under Section 5.02 on the Determination Date will be the annuity settlement option under Section 5.05(a) (and only with a 50% survivor option), a Qualified Joint and Survivor Annuity, and a single life annuity). An election by a qualified Former Participant under this Section 5.05(f) may not be revoked after December 1, 2012. Solely for purposes of calculating a qualified Former Participant’s vested Accrued Benefit under this Section 5.05(f), an early retirement subsidy or subsidies available for the qualified Former Participant under Section 5.02 on the Determination Date or after the Determination Date upon reaching his or her 55th birthday (or later) after the Determination Date shall be included in the vested Accrued Benefit under this Section 5.05(f). For purposes of this Section 5.05 and Section 7.02, a “qualified Former Participant” is (1) a Former Participant (a) who was a Former Participant on July 1, 2012 and on December 1, 2012, (b) who is entitled to a vested, deferred Normal Retirement Benefit, (c) who has not received any portion of his or her vested, deferred Normal Retirement Benefit by December 1, 2012, (d) who is not a participant in The Hanover Excess Benefit Retirement Plan on December 1, 2012, (e) the Actuarial Equivalent present value of whose vested Accrued Benefit on December 1, 2012 exceeds $5,000 but does not exceed $15,000, and (f) whose last day as an Employee of an Employer or an Affiliate was before July 1, 2012, (g) who is not a named party in a Domestic Relations Order under review on the Determination Date by the Plan to determine whether it will be a Qualified Domestic Relations Order, and (h) who has not become eligible to begin receiving his or her vested deferred Normal Retirement Benefit (as defined in Part II) from the Plan, and (2) an alternate payee of a qualified Former Participant, but only if the combined present values of the vested Accrued Benefits on the Determination Date of the qualified Former Participant and his or her alternate payee do not exceed $15,000.” 
		

		
			 
		

		
			4.             Effective on and after January 1, 2013, Section 5.05(f) of Part II of the Plan, as added by this Amendment, is deleted in its entirety. 
		

		
			5.              Effective on and after October 18, 2012, Section 5.05 of Part II of the Plan is amended to add the following immediately after new Section 5.05(f): 
		

		
			“Notwithstanding anything in Part II of the Plan to the contrary except Section 5.08, effective for involuntary cashouts paid on or after December 1, 2012, a Former Participant (other than a Former Participant (a) who is a participant in The Hanover Excess Benefit Retirement Plan, or (b) whose Accrued Benefit has been restricted by an approved Qualified Domestic Relations Order) who is not an Employee of the Employer or an Affiliate will be paid the present value of his or her vested Accrued Benefit on December 1, 2012 (or after December 1, 2012, on the Determination Date) in an immediate lump sum if the present value of the Former Participant’s vested Accrued Benefit, if any, on December 1, 2012 (or after December 1, 2012, on the Determination Date) does not exceed $5,000. Consent to this involuntary cashout by the Former Participant will not be required, and spousal consent to this involuntary cashout will not be required in the case of a married Former Participant.” 
		

		
			6.             Effective on and after December 1, 2012, Section 5.05 of Part II of the Plan is amended to delete the last five paragraphs of Section 5.05 and to substitute the following as the new last paragraphs of Section 5.05, as follows: 
		

		
			“Notwithstanding the foregoing, the failure of a Participant and spouse (or where either the Participant or the spouse has died, the survivor) to consent to a distribution (other than an involuntary cashout) when a benefit is “immediately distributable” (as described below) shall be deemed to be an election to defer commencement of payment of any benefit sufficient to satisfy this Section 5.05 (and provisions of Article III of Part III of the Plan). In no event will benefits begin to be distributed (other than as an involuntary cashout) prior to the later of Age 62 or Normal Retirement Age without the consent of the Participant. The consent of the Participant’s spouse will also be required for any such distribution (other than an involuntary cashout) unless the benefit is paid in the form of a Qualified Joint and Survivor Annuity. 
		

		

		

		 

		

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			If the Accrued Benefit is immediately distributable, the Participant and the Participant’s spouse (or where either the Participant or the spouse has died, the survivor) must consent to any distribution (other than as an involuntary cashout) of such Accrued Benefit. Needed consents of the Participant and the Participant’s spouse shall be obtained in writing within the 90-day period (180-day period for Plan Years beginning January 1, 2007 and thereafter) ending on the annuity starting date. The “annuity starting date” is the first day of the first period for which an amount is paid as an annuity or any other form. The Plan Administrator shall notify the Participant and the Participant’s spouse of the right to defer any distribution (other than an involuntary cashout) until the Participant’s Accrued Benefit is no longer immediately distributable. Such notification shall include a general description of the material features, and an explanation of the relative values of, the optional forms of benefit available under Part II of the Plan in a manner that would satisfy the notice requirements of Section 417(a)(3) of the Code, and shall be provided no less than 30 days and no more than 90 days (180 days for Plan Years beginning January 1, 2007 and thereafter) prior to the annuity starting date; provided, however, that the minimum 30 day notice period described in this sentence may be waived by the Participant’s written waiver given after notice to the Participant has described that the Participant was allowed at least 30 days to consider his choice under this Section and that the Participant was allowed to revoke his waiver under this Section at any time through his or her annuity starting date. 
		

		
			Notwithstanding the foregoing, only the Participant need consent to the commencement of a distribution in the form of a Qualified Joint and Survivor Annuity while the Accrued Benefit is immediately distributable. Neither the consent of the Participant nor the Participant’s spouse shall be required to the extent that a distribution is required to satisfy Section 401(a)(9) or Section 415 of the Code. 
		

		
			An Accrued Benefit is “immediately distributable” if any part of the Accrued Benefit could be distributed to the Participant (or surviving spouse) before the Participant attains (or would have attained if not deceased) the later of Normal Retirement Age or Age 62. 
		

		
			Notwithstanding the above, the distribution of the entire interest of a Participant or a Beneficiary must not violate the minimum required distribution rules set forth in Article III of Part III of the Plan.” 
		

		
			7.             Effective for annuity starting dates occurring on and after December 1, 2012, Section 5.08(a) of Part II of the Plan is deleted in its entirety, and the following new Section 5.08(a) is substituted in lieu thereof: 
		

		
			“(a)       Notwithstanding any provision of Part II of the Plan to the contrary that would otherwise limit a distributee’s election under this Article or under Articles VI and VII other than this Section 5.08(a), a distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover; provided, however, that if the Actuarial Equivalent present value of a distributee’s vested Accrued Benefit does not exceed $1,000, the distributee does not have to be allowed the eligible rollover election described in this sentence. If the Actuarial Equivalent present value of a Participant’s Accrued Benefit exceeds $1,000 and does not exceed $5,000 and the Participant does not elect a distribution or a rollover, the Plan shall automatically distribute the Participant’s Accrued Benefit, in a direct rollover, to an eligible individual retirement plan (a “Rollover IRA”) for the benefit of such Participant and pursuant to a written agreement with the Rollover IRA provider that provides (i) the amount rolled over to the Rollover IRA shall be invested in a manner designed to preserve principal and provide a reasonable rate of return and liquidity; (ii) all fees and expenses attendant to a Rollover IRA shall not exceed the fees and expenses charged by the Rollover IRA provider for comparable IRAs established for reasons other than receipt of a rollover distribution; and (iii) the Participant on whose behalf the automatic rollover is made under this Section shall have the right to enforce the terms of the written agreement establishing the Rollover IRA, with regard to his or her rolled over funds, against the Rollover IRA provider. All fees and expenses attendant to the Rollover IRA shall be allocated to the Rollover IRA.” 
		

		
			8.             Effective on and after January 1, 2010, Section 5.08(b)(v) of Part II of the Plan is re-designated as Section 5.08(c) of Part II of the Plan. 
		

		
			9.            Effective on October 18, 2012, Section 7.02 of Part II of the Plan is amended to insert the following immediately after Option 2 in Section 7.02 as the last sentence at the end of Option 2 in Section 7.02: 
		

		
			“Notwithstanding anything in Part II of the Plan to the contrary, a timely qualified election by a qualified Former Participant under Section 5.05(f) shall also be treated, to the extent appropriate or necessary, as an election under this Section.” 
		

		
			10.           Effective on and after January 1, 2013, Section 7.02 of Part II of the Plan, as changed by this Amendment, is amended to delete the last sentence of Option 2 of Section 7.02 added by this Amendment. 
		

		

		

		 

		

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		11.           Effective on and after October 18, 2012, Section 7.06(b) of Part II of the Plan is amended to delete the first sentence of Section 7.06(b) and to substitute the following as the new first sentence of Section 7.06(b), as follows: 
		

		
			“In the case of the distribution of the present value of a partially vested Employee’s vested Accrued Benefit in accordance with Sections 5.05 or 7.02, the Employee’s Accrued Benefit described in Subsections 2.01(a) and (b) (including all optional forms of benefits and subsidies relating to such benefits) shall be restored if he or she is subsequently an Employee and repays the amount distributed plus interest, compounded annually from the date of distribution at the rate of 5 percent.” 
		

		
			This Second Amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment, and except as amended by this Amendment, the Plan shall remain in full force and effect. 
		

		
			 
		

		
			IN WITNESS WHEREOF, this Second Amendment has been executed this 17th day of October, 2012. 
		

		
			 
		

		
			THE HANOVER INSURANCE COMPANY
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

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		THE HANOVER INSURANCE GROUP 
		

		
			CASH BALANCE PENSION PLAN 
		

		
			THIRD AMENDMENT 
		

		
			This Third Amendment is executed by The Hanover Insurance Company, a New Hampshire corporation (the “Company”). 
		

		
			WHEREAS, the Company sponsors The Hanover Insurance Group Cash Balance Pension Plan (the “Plan”); and 
		

		
			WHEREAS, the Plan consists of the following three component parts, each of which is set forth in the same document: (i) Part I, which provides a cash balance and pension benefit which were formerly provided under a plan known as “The Allmerica Financial Cash Balance Pension Plan”, and then “The Hanover Insurance Group Cash Balance Pension Plan”, (ii) Part II, which provides a pension benefit which was formerly provided under a plan known as “The Allmerica Financial Agents’ Pension Plan”, and (iii) Part III, which contains Plan terms applicable to each of Part I and Part II; and 
		

		
			WHEREAS, the Plan was most recently amended and restated generally effective January 1, 2010, and such restatement has been amended twice; and 
		

		
			WHEREAS, the Company has the authority to amend the Plan at any time pursuant to Section 10.01 of Part III of the Plan; and 
		

		
			WHEREAS, the Company desires to amend the Plan to encourage payment of the vested deferred benefits of certain terminated former participants for the second time by adding for only a stated, limited period of time certain voluntary lump sum optional forms. 
		

		
			NOW, THEREFORE, the Plan is amended, effective as provided below, as follows: 
		

		
			Part I is amended as follows: 
		

		
			1.               Effective on September 20, 2013, Section 2.02 of Part I of the Plan is amended to add the following as the new last sentence of the second paragraph of existing Section 2.02, as follows: 
		

		
			“Except as provided otherwise in this Section, Actuarial Equivalents of the normal form of benefits payable when and as provided under Section 6.06(viii) and Section 8.02(z) will be computed using the Code Section 417 Mortality Table and the Code Section 417 Applicable Interest Rate.” 
		

		
			2.               Effective on and after January 1, 2014, the last sentence of the second paragraph of Section 2.02 of Part I of the Plan, as added by this Amendment, is deleted in its entirety. 
		

		
			3.              Effective solely for the period beginning September 20, 2013 and ending December 31, 2013, Section 6.06(v) of Part I of the Plan is deleted in its entirety, and the following new Section 6.06(v) is inserted in lieu thereof: 
		

		
			“(v)   Notwithstanding anything in Part I of the Plan to the contrary, a single lump sum payment in an amount equal to the Participant’s vested Account Balance on the Determination Date; provided,  however, that except as provided in (vi) below, in (vii) below, and during the period from September 20, 2013 through December 31, 2013, as provided in (viii) below or in Section 8.02(z), this form of payment shall not be available with respect to the Participant’s vested Accrued Benefit attributable to the Participant’s Grandfathered Benefit, if any, on the Determination Date.” 
		

		
			4.               Effective on and after January 1, 2014, Section 6.06(v) of Part I of the Plan, as changed by this Amendment, is deleted in its entirety, and the following new Section 6.06(v) is inserted in lieu thereof: 
		

		
			“(v)    Notwithstanding anything in Part I of the Plan to the contrary, a single lump sum payment in an amount equal to the Participant’s vested Account Balance on the Determination Date; provided,  however, that except as provided in (vi) below and (vii) below, this form of payment shall not be available with respect to the Participant’s vested Accrued Benefit attributable to the Participant’s Grandfathered Benefit, if any, on the Determination Date. In the event a Participant elects to have his or her vested Account Balance on the Determination Date payable in a lump sum under this (v), the portion of his or her Accrued Benefit attributable to his or her Grandfathered Benefit, if any, shall be paid only in accordance with the otherwise applicable provisions of this Article VI of Part I of the Plan.” 
		

		
			5.             Effective solely for the period beginning September 20, 2013 and ending December 31, 2013, Section 6.06(vi) of Part I of the Plan is deleted in its entirety, and the following new Section 6.06(vi) is inserted in lieu thereof: 
		

		
			“(vi)If the present value of a Participant’s vested Grandfathered Benefit, if any, on the Determination Date does not exceed $5,000, an immediate single sum payment in an amount equal to such present value.” 
		

		

		

		 

		

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		6.           Effective on and after January 1, 2014, Section 6.06(vi) of Part I of the Plan, as changed by this Amendment, is deleted in its entirety, and the following new Section 6.06(vi) is inserted in lieu thereof: 
		

		
			“(vi)    If the present value of a Participant’s vested Grandfathered Benefit, if any, on the Determination Date does not exceed $5,000, an immediate single sum payment in an amount equal to such present value. If the present value of a Participant’s vested Grandfathered Benefit exceeds $5,000, only annuity options (i) through (iv) above shall be available with respect to such vested Grandfathered Benefit.” 
		

		
			7.           Effective on September 20, 2013, Section 6.06 of Part I of the Plan is amended to insert the following immediately after Section 6.06(vii), as follows: 
		

		
			“(viii) Notwithstanding anything in Part I of the Plan to the contrary, for distributions elected under this (viii) by a qualified Former Participant during the period beginning September 20, 2013 and ending at midnight on October 31, 2013, either an immediate single sum payment of the present value of the qualified Former Participant’s vested Accrued Benefit in an amount equal to such present value as of the Determination Date, or one of the annuity settlement options described in (i) through (iv) above, to the extent otherwise available, payable beginning immediately on the Determination Date (except that the only immediate annuity settlement options available under this (viii) to a qualified Former Participant whose vested Accrued Benefit is only a Grandfathered Benefit and who is not eligible for early retirement under Section 6.02 or 6.03 on the Determination Date will be the annuity settlement option described in (i) above (and only with a 50% survivor option), a Qualified Joint and Survivor Annuity, and a single life annuity). An election by a qualified Former Participant under this (viii) may not be revoked after November 1, 2013. Solely for purposes of calculating a Former Participant’s vested Accrued Benefit under this (viii), an early retirement subsidy or subsidies available for the qualified Former Participant under Section 6.02 or Section 6.03 on the Determination Date or after the Determination Date upon reaching his or her 55th birthday (or later) after the Determination Date shall be included in the vested Accrued Benefit under this (viii). For purposes of this (viii) and Section 8.02(z), a “qualified Former Participant” is (1) a Former Participant (a) who was a Former Participant on August 1, 2013 and on November 1, 2013, (b) who is entitled to a vested, deferred Normal Retirement Benefit, (c) who has not received any portion of his or her vested, deferred Grandfathered Benefit by November 1, 2013, (d) who is not a participant in The Hanover Excess Benefit Retirement Plan on November 1, 2013, (e) the Actuarial Equivalent present value of whose vested Accrued Benefit on November 1, 2013 exceeds $5,000 but does not exceed $28,000, (f) whose last day as an Employee of an Employer or an Affiliate was before August 1, 2013, (g) who is not a named party in a Domestic Relations Order under review on the Determination Date by the Plan to determine whether it will be a Qualified Domestic Relations Order, (h) who has not become eligible to begin receiving his or her vested deferred Normal Retirement Benefit (other than his or her Account Balance) from the Plan, and (i) who either was not eligible to receive a payment under the Plan’s predecessor voluntary cashout opportunity that occurred during December 2012 or was eligible, but due to an inaccurate mailing address did not receive the invitation to participate in that predecessor cashout opportunity, and (2) an alternate payee of a qualified Former Participant, but only if the combined present values of the vested Accrued Benefits of the qualified Former Participant and his or her alternate payee do not exceed $28,000.” 
		

		
			8.            Effective on and after January 1, 2014, Section 6.06(viii) of Part I of the Plan, as added by this Amendment, is deleted in its entirety. 
		

		
			9.           Effective on September 20, 2013, Section 8.02 of Part I of the Plan is amended to add the following as new Section 8.02(z), as follows: 
		

		

		

		 

		

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			“(z)      Notwithstanding anything in Part I of the Plan to the contrary, effective for distributions elected under this Section 8.02(z) by a qualified Former Participant during the period beginning September 20, 2013 and ending at midnight on October 31, 2013, a qualified Former Participant (as defined in Section 6.06(viii)) may elect to receive his or her vested Accrued Benefit attributable to such Former Participant’s vested Grandfathered Benefit either in an immediate lump sum or in one of the annuity settlement options described in Section 6.06(i) through Section 6.06(iv), to the extent otherwise available, payable beginning immediately on the Determination Date; provided, however, that a qualified Former Participant electing under this Section 8.02(z) to receive an immediate payment of some or all of his or her vested Accrued Benefit attributable to his vested Grandfathered Benefit must also make a qualified election under this Section to receive his or her vested Account Balance in the same immediate payment form as part of the same distribution, and the only immediate annuity settlement options available under this Section 8.02(z) to a qualified Former Participant whose vested Accrued Benefit is only a Grandfathered Benefit and who is not eligible for early retirement under Section 6.02 or Section 6.03 on the Determination Date will be the annuity settlement option described in Section 6.06(i) (and only with a 50% survivor option), a Qualified Joint and Survivor Annuity, and a single life annuity. An election by a qualified Former Participant under this Section 8.02(z) may not be revoked after November 1, 2013. Any spousal consent must satisfy the requirements of Section 6.07. Solely for purposes of calculating a Former Participant’s vested Accrued Benefit under this Section 8.02(z), an early retirement subsidy or subsidies available for the qualified Former Participant under Section 6.02 or Section 6.03 on the Determination Date or after the Determination Date upon reaching his or her 55th birthday (or later) after the Determination Date shall be included in the vested Accrued Benefit under this Section 8.02(z).” 
		

		
			10.           Effective on and after January 1, 2014, Section 8.02(z) of Part I of the Plan, as added by this Amendment, is deleted in its entirety. 
		

		
			Part II is amended as follows: 
		

		
			1.                Effective on September 20, 2013, Section 2.02 of Part II of the Plan is amended to add the following as the new last sentence of the second paragraph of existing Section 2.02, as follows: 
		

		
			“Except as provided otherwise in this Section, Actuarial Equivalents of the normal form of benefits payable when and as provided under Section 5.05(f) and Section 7.02 will be computed using the Code Section 417 Mortality Table and the Code Section 417 Applicable Interest Rate.” 
		

		
			2.                Effective on and after January 1, 2014, the last sentence of the second paragraph of Section 2.02 of Part II of the Plan, as added by this Amendment, is deleted in its entirety. 
		

		
			3.               Effective on September 20, 2013, Section 5.05 of Part II of the Plan is amended to insert the following immediately after Section 5.05(e) as new Section 5.05(f): 
		

		

		

		 

		

			13

		

		

			 

		

 

		
		

		
			“(f)   Notwithstanding anything in Part II of the Plan to the contrary, for distributions elected under this Section 5.05(f) by a qualified Former Participant during the period beginning September 20, 2013 and ending at midnight on October 31, 2013, a qualified Former Participant will be paid either an immediate single sum payment of the present value of the qualified Former Participant’s vested Accrued Benefit in an amount equal to such present value as of the Determination Date, or one of the annuity settlement options described in Sections 5.05(a) through 5.05(d) above, to the extent otherwise available, payable beginning immediately on the Determination Date (except that the only immediate annuity settlement options available under this Section 5.05(f) to a qualified Former Participant whose vested Accrued Benefit is only an Accrued Benefit accrued only under Part II of the Plan (and its predecessors) and who is not eligible for early retirement under Section 5.02 on the Determination Date will be the annuity settlement option under Section 5.05(a) (and only with a 50% survivor option), a Qualified Joint and Survivor Annuity, and a single life annuity). An election by a qualified Former Participant under this Section 5.05(f) may not be revoked after November 1, 2013. Solely for purposes of calculating a qualified Former Participant’s vested Accrued Benefit under this Section 5.05(f), an early retirement subsidy or subsidies available for the qualified Former Participant under Section 5.02 on the Determination Date or after the Determination Date upon reaching his or her 55th birthday (or later) after the Determination Date shall be included in the vested Accrued Benefit under this Section 5.05(f). For purposes of this Section 5.05 and Section 7.02, a “qualified Former Participant” is (1) a Former Participant (a) who was a Former Participant on August 1, 2013 and on November 1, 2013, (b) who is entitled to a vested, deferred Normal Retirement Benefit, (c) who has not received any portion of his or her vested, deferred Normal Retirement Benefit by November 1, 2013, (d) who is not a participant in The Hanover Excess Benefit Retirement Plan on November 1, 2013, (e) the Actuarial Equivalent present value of whose vested Accrued Benefit on November 1, 2013 exceeds $5,000 but does not exceed $28,000, (f) whose last day as an Employee of an Employer or an Affiliate was before August 1, 2013, (g) who is not a named party in a Domestic Relations Order under review on the Determination Date by the Plan to determine whether it will be a Qualified Domestic Relations Order, (h) who has not become eligible to begin receiving his or her vested deferred Normal Retirement Benefit (as defined in Part II) from the Plan, and (i) who either was not eligible to receive a payment under the Plan’s predecessor voluntary cashout opportunity that occurred during December 2012 or was eligible, but due to an inaccurate mailing address did not receive the invitation to participate in that predecessor cashout opportunity, and (2) an alternate payee of a qualified Former Participant, but only if the combined present values of the vested Accrued Benefits on the Determination Date of the qualified Former Participant and his or her alternate payee do not exceed $28,000.” 
		

		
			4.           Effective on and after January 1, 2014, Section 5.05(f) of Part II of the Plan, as added by this Amendment, is deleted in its entirety. 
		

		
			5.            Effective on September 20, 2013, Section 7.02 of Part II of the Plan is amended to insert the following immediately after Option 2 in Section 7.02 as the last sentence at the end of Option 2 in Section 7.02: 
		

		
			 
		

		
			“Notwithstanding anything in Part II of the Plan to the contrary, a timely qualified election by a qualified Former Participant under Section 5.05(f) shall also be treated, to the extent appropriate or necessary, as an election under this Section.” 
		

		
			6.              Effective on and after January 1, 2014, Section 7.02 of Part II of the Plan, as changed by this Amendment, is amended to delete the last sentence of Option 2 of Section 7.02 added by this Amendment. 
		

		
			This Third Amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment, and except as amended by this Amendment, the Plan shall remain in full force and effect. 
		

		
			IN WITNESS WHEREOF, this Third Amendment has been executed this 18th day of September, 2013. 
		

		
			
		

		
			 
		

		
			 
		

		

		

		 

		

			14

		

		

			 

		

 

		
		

		
			THE HANOVER INSURANCE GROUP 
		

		
			CASH BALANCE PENSION PLAN 
		

		
			FOURTH AMENDMENT 
		

		
			This Fourth Amendment is executed by The Hanover Insurance Company, a New Hampshire corporation (the “Company”). 
		

		
			WHEREAS, the Company sponsors The Hanover Insurance Group Cash Balance Pension Plan (the “Plan”); and 
		

		
			WHEREAS, the Plan consists of the following three component parts, each of which is set forth in the same document: (i) Part I, which provides a cash balance and pension benefit which were formerly provided under a plan known as “The Allmerica Financial Cash Balance Pension Plan”, and then “The Hanover Insurance Group Cash Balance Pension Plan”, (ii) Part II, which provides a pension benefit which was formerly provided under a plan known as “The Allmerica Financial Agents’ Pension Plan”, and (iii) Part III, which contains Plan terms applicable to each of Part I and Part II; and 
		

		
			WHEREAS, the Plan was most recently amended and restated generally effective January 1, 2010, and such restatement has been amended three times; and 
		

		
			WHEREAS, the Company has the authority to amend the Plan at any time pursuant to Section 10.01 of Part III of the Plan; and 
		

		
			WHEREAS, the Company desires to amend the Plan to take into account a recently effective statutory change. 
		

		
			NOW, THEREFORE, the Plan is amended, effective as provided below, as follows: 
		

		
			Part I is amended as follows: 
		

		
			Effective January 1, 2013, Section 2.02(c) of Part I of the Plan is deleted in its entirety, and the following is inserted as new Section 2.02(c) of Part I of the Plan, as follows: 
		

		
			“(c)            for periods beginning on and after January 1, 2008, the “Code Section 417 Applicable Interest Rate” means, for the Plan Year which contains the annuity starting date for the distribution, the applicable interest rate described by Code section 417(e) after its amendment by the Pension Protection Act of 2006, which rate more specifically shall be the adjusted first, second, and third segment rates applied under rules similar to the rules of Code section 430(h)(2)(C) (without considering any adjustment under Code section 430(h)(2)(C)(iv)) for the lookback month used to determine the previously applicable interest rate on 30-year Treasury securities (e.g., November 2009 for the 2010 Plan Year) or for such other time as the Secretary of the Treasury may by regulations prescribe. For purposes of determining the Code Section 417 Applicable Interest Rate, the first, second, and third segment rates are the first, second, and third segment rates which would be determined under Code section 430(h)(2)(C) (without considering any adjustment under Code section 430(h)(2)(C)(iv)) if: 
		

		
			(i)Code section 430(h)(2)(D) were applied by substituting the average yields for the month described in clause (ii) below for the average yields for the 24-month period described in such Code section, and 
		

		
			(ii)Code section 430(h)(2)(G)(i)(II) were applied by substituting “Section 417(e)(3)(A)(ii)(II) for “Section 412(b)(5)(B)(ii)(II),” and 
		

		
			(iii)The applicable percentage under Code section 430(h)(2)(G) is treated as being 20% in 2008, 40% in 2009, 60% in 2010, and 80% in 2011.” 
		

		
			Part II is amended as follows: 
		

		
			1. Effective January 1, 2013, Section 2.02(c) of Part II of the Plan is deleted in its entirety, and the following is inserted as new Section 2.02(c) of Part II of the Plan, as follows: 
		

		
			“(c)         for periods beginning on and after January 1, 2008, the “Code Section 417 Applicable Interest Rate” means, for the Plan Year which contains the annuity starting date for the distribution, the applicable interest rate described by Code section 417(e) after its amendment by the Pension Protection Act of 2006, which rate more specifically shall be the adjusted first, second, and third segment rates applied under rules similar to the rules of Code section 430(h)(2)(C) (without considering any adjustment under Code section 430(h)(2)(C)(iv)) for the lookback month used to determine the previously applicable interest rate on 30-year Treasury securities (e.g., November 2009 for the 2010 Plan Year) or for such other time as the Secretary of the Treasury may by regulations prescribe.” 
		

		

		

		 

		

			15

		

		

			 

		

 

		2. Effective January 1, 2013, Section 2.02(d) of Part II of the Plan is amended to delete all of existing Section 2.02(d) of Part II of the Plan that precedes Section 2.02(d)(i) of Part II of the Plan and to substitute the following in its place, as follows: 
		

		
			“(d)        For purposes of determining the Code Section 417 Applicable Interest Rate, the first, second, and third segment rates are the first, second, and third segment rates which would be determined under Code section 430(h)(2)(C) (without considering any adjustment under Code section 430(h)(2)(C)(iv)) if:” 
		

		
			This Fourth Amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment, and except as amended by this Amendment, the Plan shall remain in full force and effect. 
		

		
			IN WITNESS WHEREOF, this Fourth Amendment has been executed this 16th day of December, 2013. 
		

			
					
						 

				
	
					
						 

				
	
					
						THE HANOVER INSURANCE COMPANY

				
	
					
						 

				
	
					
						

				
	
					
						Authorized Representative

				

		
			 
		

		
			
		

		

		

		 

		

			16

		

		

			 

		

 

		
		

		
			THE HANOVER INSURANCE GROUP
CASH BALANCE PENSION PLAN
		

		
			FIFTH AMENDMENT
		

		
			This Fifth Amendment is executed by The Hanover Insurance Company, a New Hampshire corporation (the “Company”).
		

		
			WHEREAS, the Company sponsors The Hanover Insurance Group Cash Balance Pension Plan (the “Plan”); and
		

		
			WHEREAS, the Plan consists of the following three component parts, each of which is set forth in the same document: (i) Part I, which provides a cash balance and pension benefit which were formerly provided under a plan known as “The Allmerica Financial Cash Balance Pension Plan”, and then “The Hanover Insurance Group Cash Balance Pension Plan”, (ii) Part II, which provides a pension benefit which was formerly provided under a plan known as “The Allmerica Financial Agents’ Pension Plan”, and (iii) Part III, which contains Plan terms applicable to each of Part I and Part II; and
		

		
			WHEREAS, the Plan was most recently amended and restated generally effective January 1, 2010, and such restatement has been amended four times; and
		

		
			WHEREAS, the Company has the authority to amend the Plan at any time pursuant to Section 10.01 of Part III of the Plan; and
		

		
			WHEREAS, the Company desires to amend the Plan to encourage immediate payment of the vested deferred benefits of virtually all terminated former participants for the third time by adding for only a stated, limited period of time certain voluntary lump sum and immediate annuity optional forms.
		

		
			NOW, THEREFORE, the Plan is amended, effective as provided below, as follows:
		

		
			Part I is amended as follows:
		

		
			1.Effective on September 2, 2014, Section 2.02 of Part I of the Plan is amended to add the following as the new last sentence of the second paragraph of existing Section 2.02, as follows:
		

		
			“Except as provided otherwise in this Section, Actuarial Equivalents of the normal form of benefits payable when and as provided under Section 6.06(ix) and Section 8.02(z) will be computed using the Code Section 417 Mortality Table and the Code Section 417 Applicable Interest Rate.”
		

		
			2.Effective on and after January 1, 2015, the last sentence of the second paragraph of Section 2.02 of Part I of the Plan, as added by this Amendment, is deleted in its entirety.
		

		
			3.Effective solely for the period beginning September 2, 2014 and ending December 31, 2014, Section 6.06(v) of Part I of the Plan is deleted in its entirety, and the following new Section 6.06(v) is inserted in lieu thereof:
		

		
			“(v)        Notwithstanding anything in Part I of the Plan to the contrary, a single lump sum payment in an amount equal to the Participant’s vested Account Balance on the Determination Date; provided,  however, that except as provided in (vi) below, in (vii) below, and during the period from September 2, 2014 through December 31, 2014, as provided in (ix) below or in Section 8.02(z), this form of payment shall not be available with respect to the Participant’s vested Accrued Benefit attributable to the Participant’s Grandfathered Benefit, if any, on the Determination Date.”
		

		
			4.Effective on and after January 1, 2015, Section 6.06(v) of Part I of the Plan, as changed by this Amendment, is deleted in its entirety, and the following new Section 6.06(v) is inserted in lieu thereof:
		

		

		

		 

		

			17

		

		

			 

		

 

		
		

		
			“(v)        Notwithstanding anything in Part I of the Plan to the contrary, a single lump sum payment in an amount equal to the Participant’s vested Account Balance on the Determination Date; provided,  however, that except as provided in (vi) below and (vii) below, this form of payment shall not be available with respect to the Participant’s vested Accrued Benefit attributable to the Participant’s Grandfathered Benefit, if any, on the Determination Date.  In the event a Participant elects to have his or her vested Account Balance on the Determination Date payable in a lump sum under this (v), the portion of his or her Accrued Benefit attributable to his or her Grandfathered Benefit, if any, shall be paid only in accordance with the otherwise applicable provisions of this Article VI of Part I of the Plan.”
		

		
			5.Effective solely for the period beginning September 2, 2014 and ending December 31, 2014, Section 6.06(vi) of Part I of the Plan is deleted in its entirety, and the following new Section 6.06(vi) is inserted in lieu thereof:
		

		
			“(vi)        If the present value of a Participant’s vested Grandfathered Benefit, if any, on the Determination Date does not exceed $5,000, an immediate single sum payment in an amount equal to such present value.”
		

		
			6.Effective on and after January 1, 2015, Section 6.06(vi) of Part I of the Plan, as changed by this Amendment, is deleted in its entirety, and the following new Section 6.06(vi) is inserted in lieu thereof:
		

		
			“(vi)        If the present value of a Participant’s vested Grandfathered Benefit, if any, on the Determination Date does not exceed $5,000, an immediate single sum payment in an amount equal to such present value.  If the present value of a Participant’s vested Grandfathered Benefit exceeds $5,000, only annuity options (i) through (iv) and (viii) above shall be available with respect to such vested Grandfathered Benefit.”
		

		
			7.Effective on January 1, 2014, Section 6.06 of Part I of the Plan is amended to insert the following immediately after Section 6.06(vii), as follows:
		

		
			"(viii)       An annuity for only the life of the Participant that terminates on the last regular payment date prior to the death of the Participant."
		

		
			8.Effective on September 2, 2014, Section 6.06 of Part I of the Plan, as changed by this Amendment,  is amended to insert the following immediately after Section 6.06(viii), as follows:
		

		
			“(ix)         Notwithstanding anything in Part I of the Plan to the contrary, for distributions elected under this (ix) by a qualified Former Participant during the period beginning September 3, 2014 and ending at midnight on October 16, 2014, either an immediate single sum payment of the present value of the qualified Former Participant’s vested Accrued Benefit in an amount equal to such present value as of the Determination Date, or one of the annuity settlement options described in (i) through (iv) or (viii) above, to the extent otherwise available, payable beginning immediately on the Determination Date (except that the only immediate annuity settlement options available under this (ix) to a qualified Former Participant whose vested Accrued Benefit is only a Grandfathered Benefit and who is not eligible for early retirement under Section 6.02 or 6.03 on the Determination Date will be the annuity settlement option described in (i) above (and only with a 50% survivor option), a Qualified Joint and Survivor Annuity, and the annuity settlement option described in (viii) above).  An election by a qualified Former Participant under this (ix) may not be revoked after November 1, 2014.  Solely for purposes of calculating a Former Participant’s vested Accrued Benefit under this (ix), an early retirement subsidy or subsidies available for the qualified Former Participant under Section 6.02 or Section 6.03 on the Determination Date or after the Determination Date upon reaching his or her 55th birthday (or later) after the Determination Date shall be included in the vested Accrued Benefit under this (ix).  For purposes of this (ix) and Section 8.02(z), a “qualified Former Participant” is (1) a Former Participant (a) who was a Former Participant on August 1, 2014 and on November 1, 2014, (b) who is entitled to a vested, deferred Normal Retirement Benefit, (c) who has not received any portion of his or her vested, deferred Grandfathered Benefit by November 1, 2014, (d) who is not a participant in The Hanover Excess Benefit Retirement Plan on November 1, 2014, (e) the Actuarial Equivalent present value of whose vested Accrued Benefit on November 1, 2014 exceeds $5,000, (f) whose last day as an Employee of an Employer or an Affiliate was before August 1, 2014, (g) who is not a named party in a Domestic Relations Order under review on the Determination Date by the Plan to determine whether it will be a Qualified Domestic Relations Order, and (h) who has not become eligible to begin receiving his or her vested deferred Normal Retirement Benefit (other than his or her Account Balance) from the Plan or whose Normal Retirement Date is November 1, 2014, and (2) an alternate payee of a 
		

		 

		

			18

		

		

			 

		

 

		qualified Former Participant, but only if the combined present values of the vested Accrued Benefits of the qualified Former Participant and his or her alternate payee exceeds $5,000.”
		

		
			9.Effective on and after January 1, 2015, Section 6.06(ix) of Part I of the Plan, as added by this Amendment, is deleted in its entirety.
		

		
			10.Effective on September 2, 2014, Section 8.02 of Part I of the Plan is amended to add the following as new Section 8.02(z), as follows:
		

		
			“(z)          Notwithstanding anything in Part I of the Plan to the contrary, effective for distributions elected under this Section 8.02(z) by a qualified Former Participant during the period beginning September 3, 2014 and ending at midnight on October 16, 2014, a qualified Former Participant (as defined in Section 6.06(ix)) may elect to receive his or her vested Accrued Benefit attributable to such Former Participant’s vested Grandfathered Benefit either in an immediate lump sum or in one of the annuity settlement options described in Section 6.06(i) through Section 6.06(iv) or Section 6.06(viii), to the extent otherwise available, payable beginning immediately on the Determination Date; provided, however, that a qualified Former Participant electing under this Section 8.02(z) to receive an immediate payment of some or all of his or her vested Accrued Benefit attributable to his vested Grandfathered Benefit must also make a qualified election under this Section to receive his or her vested Account Balance in the same immediate payment form as part of the same distribution, and the only immediate annuity settlement options available under this Section 8.02(z) to a qualified Former Participant whose vested Accrued Benefit is only a Grandfathered Benefit and who is not eligible for early retirement under Section 6.02 or Section 6.03 on the Determination Date will be the annuity settlement option described in Section 6.06(i) (and only with a 50% survivor option), a Qualified Joint and Survivor Annuity, and the annuity settlement option described in Section 6.06(viii).  An election by a qualified Former Participant under this Section 8.02(z) may not be revoked after November 1, 2014.  Any spousal consent must satisfy the requirements of Section 6.07.  Solely for purposes of calculating a Former Participant’s vested Accrued Benefit under this Section 8.02(z), an early retirement subsidy or subsidies available for the qualified Former Participant under Section 6.02 or Section 6.03 on the Determination Date or after the Determination Date upon reaching his or her 55th birthday (or later) after the Determination Date shall be included in the vested Accrued Benefit under this Section 8.02(z).”
		

		
			11.Effective on and after January 1, 2015, Section 8.02(z) of Part I of the Plan, as added by this Amendment, is deleted in its entirety.
		

		
			Part II is amended as follows:
		

		
			1.Effective on September 2, 2014, Section 2.02 of Part II of the Plan is amended to add the following as the new last sentence of the second paragraph of existing Section 2.02, as follows:
		

		
			“Except as provided otherwise in this Section, Actuarial Equivalents of the normal form of benefits payable when and as provided under Section 5.05(g) and Section 7.02 will be computed using the Code Section 417 Mortality Table and the Code Section 417 Applicable Interest Rate.”
		

		
			2.Effective on and after January 1, 2015, the last sentence of the second paragraph of Section 2.02 of Part II of the Plan, as added by this Amendment, is deleted in its entirety.
		

		
			3.Effective on January 1, 2014, Section 5.05 of Part II of the Plan is amended to insert the following immediately after Section 5.05(e) as new Section 5.05(f):
		

		
			"(f)       An annuity payable for only the life of the Participant that terminates on the last regular payment date prior to the death of the Participant."
		

		
			4.Effective on September 2, 2014, Section 5.05 of Part II of the Plan, as changed by this Amendment, is amended to insert the following immediately after Section 5.05(f) as new Section 5.05(g):
		

		

		

		 

		

			19

		

		

			 

		

 

		
		

		
			“(g)         Notwithstanding anything in Part II of the Plan to the contrary, for distributions elected under this Section 5.05(g) by a qualified Former Participant during the period beginning September 3, 2014 and ending at midnight on October 16, 2014, a qualified Former Participant will be paid either an immediate single sum payment of the present value of the qualified Former Participant’s vested Accrued Benefit in an amount equal to such present value as of the Determination Date, or one of the annuity settlement options described in Sections 5.05(a) through 5.05(d) or Section 5.05(f) above, to the extent otherwise available, payable beginning immediately on the Determination Date (except that the only immediate annuity settlement options available under this Section 5.05(g) to a qualified Former Participant whose vested Accrued Benefit is only an Accrued Benefit accrued only under Part II of the Plan (and its predecessors) and who is not eligible for early retirement under Section 5.02 on the Determination Date will be the annuity settlement option under Section 5.05(a) (and only with a 50% survivor option), a Qualified Joint and Survivor Annuity, and the annuity settlement option described in Section 5.05(f)).  An election by a qualified Former Participant under this Section 5.05(g) may not be revoked after November 1, 2014.  Solely for purposes of calculating a qualified Former Participant’s vested Accrued Benefit under this Section 5.05(g), an early retirement subsidy or subsidies available for the qualified Former Participant under Section 5.02 on the Determination Date or after the Determination Date upon reaching his or her 55th birthday (or later) after the Determination Date shall be included in the vested Accrued Benefit under this Section 5.05(g).  For purposes of this Section 5.05(g) and Section 7.02, a “qualified Former Participant” is (1) a Former Participant (a) who was a Former Participant on August 1, 2014 and on November 1, 2014, (b) who is entitled to a vested, deferred Normal Retirement Benefit, (c) who has not received any portion of his or her vested, deferred Normal Retirement Benefit by November 1, 2014, (d) who is not a participant in The Hanover Excess Benefit Retirement Plan on November 1, 2014, (e) the Actuarial Equivalent present value of whose vested Accrued Benefit on November 1, 2014 exceeds $5,000, (f) whose last day as an Employee of an Employer or an Affiliate was before August 1, 2014, (g) who is not a named party in a Domestic Relations Order under review on the Determination Date by the Plan to determine whether it will be a Qualified Domestic Relations Order, and (h) who has not become eligible to begin receiving his or her vested deferred Normal Retirement Benefit (as defined in Part II) from the Plan or whose Normal Retirement Date (as defined in Part II) is on November 1, 2014, and (2) an alternate payee of a qualified Former Participant, but only if the combined present values of the vested Accrued Benefits on the Determination Date of the qualified Former Participant and his or her alternate payee exceeds $5,000.”
		

		
			5.Effective on and after January 1, 2015, Section 5.05(g) of Part II of the Plan, as added by this Amendment, is deleted in its entirety.
		

		
			6.Effective on September 2, 2014, Section 7.02 of Part II of the Plan is amended to insert the following immediately after Option 2 in Section 7.02 as the last sentence at the end of Option 2 in Section 7.02:
		

		
			“Notwithstanding anything in Part II of the Plan to the contrary, a timely qualified election by a qualified Former Participant under Section 5.05(g) shall also be treated, to the extent appropriate or necessary, as an election under this Section.”
		

		
			7.Effective on and after January 1, 2015, Section 7.02 of Part II of the Plan, as changed by this Amendment, is amended to delete the last sentence of Option 2 of Section 7.02 added by this Amendment.
		

		
			This Fifth Amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment, and except as amended by this Amendment, the Plan shall remain in full force and effect.  
		

		
			IN WITNESS WHEREOF, this Fifth Amendment has been executed this 22nd day of August, 2014.
		

		
			
		

		

		

		 

		

			20

		

		

			 

		

 

		
		

		
			THE HANOVER INSURANCE GROUP CASH BALANCE PENSION PLAN
		

		
			 
		

		
			SIXTH AMENDMENT
		

		
			 
		

		
			This Sixth Amendment is executed by The Hanover Insurance Company, a New Hampshire corporation (the "Company").
		

		
			 
		

		
			WHEREAS, the Company sponsors The Hanover Insurance Group Cash Balance Pension Plan (the "Plan"); and
		

		
			 
		

		
			WHEREAS, the Plan consists of the following three component parts, each of which is set forth in the same document: (i) Part I, which provides a cash balance and pension benefit which were formerly provided under a plan known as "The Allmerica Financial Cash Balance Pension Plan", and then "The Hanover Insurance Group Cash Balance Pension Plan", (ii) Part II, which provides a pension benefit which was formerly provided under a plan known as "The Allmerica Financial Agents'  Pension Plan", and (iii) Part III, which contains Plan terms applicable to each of Part I and Part II; and
		

		
			 
		

		
			WHEREAS, the Plan was most recently amended and restated generally effective January 1, 2010, and such restatement has been amended five times; and
		

		
			 
		

		
			WHEREAS, the Company has the authority to amend the Plan at any time pursuant to Section 10.01 of Part III of the Plan; and
		

		
			 
		

		
			WHEREAS, the Company desires to amend the Plan to delete provisions limiting the Plan's recognition of lawful marriages between same-gender individuals; and
		

		
			 
		

		
			WHEREAS, the Plan was amended by the Fifth Amendment to the Plan (the "Fifth Amendment") to add certain voluntary lump sum and immediate annuity optional forms for some terminated former participants for a limited period ending December  31, 2014; and
		

		
			 
		

		
			WHEREAS, due to inaccuracies in the Plan's records, some terminated former Plan participants (i) who were otherwise eligible to participate in the opportunities afforded by the Fifth Amendment (the "Choices"); (ii) who timely returned valid elections choosing an optional form of payment from among the Choices, including a signed spousal consent; (iii) who as of the date of this Amendment lacked no more than a later, valid spousal consent executed and provided to the Plan after further notice about the Choices had been given to his or her spouse to qualify to receive their chosen optional form of payment before 2015; and (iv) who subsequently  and timely return a second, fully completed, executed and valid spousal consent as directed by the Plan (the "Consent Participants") cannot be paid by December 31, 2014; and
		

		
			 
		

		
			WHEREAS, for only the Consent Participants, the Company desires to amend the Fifth Amendment and, as necessary, the Plan to extend the availability of the Fifth Amendment's voluntary lump sum and immediate annuity optional forms for them for the period that began as provided in the Fifth Amendment and will end January 31,2015.
		

		
			 
		

		
			NOW, THEREFORE, the Plan is amended. effective immediately, as follows:
		

		
			 
		

		
			Part I is amended as follows:
		

		
			 
		

		
			1.Effective for only the Consent Participants (as defined above) (the "Consent Participants"), Paragraph 2 of The Hanover Insurance Group Cash Balance Pension Plan Fifth Amendment (the "Fifth  Amendment") is amended to change the stated effective date of Paragraph 2 from "January 1, 2015" to "February 1, 2015." 2. Effective for only the Consent Participants and solely for the period beginning December 31, 2014 and ending January 31, 2015, Section 6.06(v) of Part I of the Plan is deleted in its entirety, and the following new Section 6.06(v) is inserted in lieu thereof:
		

		
			 
		

		

		

		 

		

			21

		

		

			 

		

 

		
		

		
			"(v)       Notwithstanding  anything in Part I of the Plan to the contrary, a single lump sum payment in an amount equal to the Participant's vested Account Balance on the Determination  Date; provided, however, that except as provided in (vi) below, in (vii) below, and during the period from September 2, 2014 through January 31, 2015, as provided in (ix) below or in Section 8.02(z), this form of payment shall not be available with respect to the Participant's vested Accrued Benefit attributable to the Participant's Grandfathered  Benefit, if any, on the Determination Date."
		

		
			3. Effective for only the Consent Participants, Paragraph 4 of the Fifth Amendment is amended to change the stated effective date from "January 1, 2015" to "February l, 2015."
		

		
			4. Effective for only the Consent Participants, Paragraph 5 of the Fifth Amendment is amended to change one of the stated effective dates of Paragraph 5 by changing "December 31, 2014" to "January 31, 2015."
		

		
			5. Effective for only the Consent Participants, Paragraph 6 of the Fifth Amendment is amended to change the stated effective date of Paragraph 6 from "January 1, 2015" to "February  I, 2015."
		

		
			6. Effective for only the Consent Participants, Paragraph 9 of the Fifth Amendment is amended to change the stated effective date of Paragraph 9 from "January 1, 2015" to "February 1, 2015."
		

		
			7. Effective June 26, 2013, Section 6.07(b)(ii) of Part I of the Plan is amended to delete the period at the end and to add the following at the end of Section 6.07(b)(ii):
		

		
			";provided, however, that notwithstanding anything in this Article to the contrary, a spouse and a surviving spouse will include any person to whom the Participant is lawfully married and with whom the Participant  resides within a state recognizing marriages between individuals of the same gender at the date of his death or at his annuity starting date, whichever is earlier, provided that a former spouse will be treated as the spouse or surviving spouse to the extent provided under a Qualified Domestic Relations Order."
		

		
			8. Effective September 16, 2013, Section 6.07(b)(ii) of Part I of the Plan is amended to delete the words: "opposite-gender” and to delete the preceding changes made to Section 6.07(b)(ii) of Part I by this Sixth Amendment.
		

		
			9. Effective for only the Consent Participants, Paragraph 11 of the Fifth Amendment is amended to change the stated effective date of Paragraph 11 from "January 1, 2015" to "February  I, 2015."
		

		
			Part II is amended as follows:
		

		
			1. Effective June 26, 2013, Section 5.06(b)(ii) of Part II of the Plan is amended to delete the period at the end and to add the following at the end of Section 5.06(b)(ii):
		

		
			"; provided, however, that notwithstanding anything in this Article to the contrary. a spouse and a surviving spouse will include any person to whom the Participant is la\\fully  married and with whom the Participant resides within a state recognizing marriages bet\veen individuals of the same gender at the date of his death or at his annuity starting date. Whichever is earlier, provided that a former spouse \viii be treated as the spouse or surviving spouse to the extent provided under a Qualified Domestic Relations Order."
		

		
			2.Effective September 16, 2013, Section 5.06(b)(ii) of Part II of the Plan is amended to delete the words: "opposite-gender" and to delete the preceding changes made to Section 5.06(b)(ii) of Part II by this Sixth Amendment.
		

		
			This Sixth Amendment shall supersede the provisions of the Plan and the Fifth Amendment to the extent those provisions are inconsistent with the provisions of this Amendment, and except as amended by this Amendment, the Plan and the Fifth Amendment shall remain in full force and effect.
		

		
			IN WITNESS WHEREOF,  this Sixth Amendment has been executed this 16th day of December, 2014.
		

		
			
		

		 

		

			22EX 103

		
			 
		

		
			Exhibit 10.3 
		

		
			THE HANOVER INSURANCE GROUP 
		

		
			RETIREMENT SAVINGS PLAN 
		

		
			Amended and restated generally effective January 1, 2010 
		

		
			 
		

		

		

		 

		

			 

		

		

			 

		

 

		TABLE OF CONTENTS 
		

		
			THE HANOVER INSURANCE GROUP 
		

		
			RETIREMENT SAVINGS PLAN 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE I

					
					
						NAME, PURPOSE AND EFFECTIVE DATE OF PLAN AND RESTATED PLAN

					
1 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE II

					
					
						DEFINITIONS

					
1 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE III

					
					
						ELIGIBILITY AND PARTICIPATION

					
12 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE IV

					
					
						EMPLOYER CONTRIBUTIONS AND FORFEITURES

					
13 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE V

					
					
						EMPLOYEE CONTRIBUTIONS AND ROLLOVER CONTRIBUTIONS

					
16 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE VI

					
					
						PROVISIONS APPLICABLE TO TOP HEAVY PLANS

					
19 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE VII

					
					
						LIMITATIONS ON ALLOCATIONS

					
21 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE VIII

					
					
						PARTICIPANT ACCOUNTS AND VALUATION OF ASSETS

					
24 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE IX

					
					
						401(k) ALLOCATION LIMITATIONS

					
24 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE X

					
					
						401(m) ALLOCATION LIMITATIONS

					
28 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE XI

					
					
						IN-SERVICE WITHDRAWALS

					
31 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE XII

					
					
						PLAN LOANS

					
32 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE XIII

					
					
						RETIREMENT, TERMINATION AND DEATH BENEFITS

					
33 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE XIV

					
					
						PLAN FIDUCIARY RESPONSIBILITIES

					
41 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE XV

					
					
						BENEFITS COMMITTEE

					
43 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE XVI

					
					
						INVESTMENT OF THE TRUST FUND

					
44 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE XVII

					
					
						CLAIMS PROCEDURE

					
46 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE XVIII

					
					
						AMENDMENT AND TERMINATION

					
47 
				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						ARTICLE XIX

					
					
						MISCELLANEOUS

					
48 
				

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			 

		

		

			 

		

 

		THE HANOVER INSURANCE GROUP 
		

		
			RETIREMENT SAVINGS PLAN 
		

		
			ARTICLE I 
		

		
			NAME, PURPOSE AND EFFECTIVE DATE OF PLAN AND RESTATED PLAN 
		

		
			1.01         Name of Plan. The name of the Plan is The Hanover Insurance Group Retirement Savings Plan. Prior to January 1, 2005, the Plan was known as “The Allmerica Financial Employees’ 401(k) Matched Savings Plan”. Effective January 1, 2005, the Plan became known as “The Allmerica Financial Retirement Savings Plan”. Effective December 1, 2005, the Plan became known as “The Hanover Insurance Group Retirement Savings Plan”. 
		

		
			1.02         Purpose. This Plan has been established for the exclusive benefit of the Plan Participants and their Beneficiaries and as far as possible shall be administered in a manner consistent with this intent and consistent with the requirements of Section 401 of the Code. 
		

		
			Subject to Section 15.04 and 18.05, under no circumstances shall any contributions made to the Plan be used for, or be diverted to, purposes other than for the exclusive benefit of Plan Participants or their Beneficiaries. 
		

		
			1.03         Plan and Plan Restatement Effective Date. The effective date of this Plan was November 22, 1961. The effective date of this amended and restated Plan is January 1, 2010 (except for those provisions of the Plan which have an alternative effective date). Except to the extent otherwise specifically provided herein, the provisions of the amended and restated Plan as set forth herein shall apply to a Participant who is in the employ of the Employer on or after January 1, 2010. The rights and benefits of any Participant whose employment with the Employer terminated prior to January 1, 2010, shall be determined in accordance with the provisions of the Plan as in effect from time to time prior to January 1, 2010, provided, however, that if the Account balance of any such Participant has not been completely distributed before January 1, 2010, then such Account balance shall be invested, accounted for and distributed in accordance with the provisions of the Plan as set forth in this document except as otherwise required by applicable law or as otherwise specifically provided herein. 
		

		
			ARTICLE II 
		

		
			DEFINITIONS 
		

		
			The terms defined in this Article shall have the meanings stated herein unless the context clearly indicates otherwise. 
		

		
			2.01         “Accrued Benefit” shall mean the sum of the balances in a Participant’s 401(k) Account, Match Contribution Account, Non-Elective Employer Contribution Account, Regular Account, Rollover Account, Tax Deductible Contribution Account and Voluntary Contribution Account. 
		

		
			 
		

		
			2.02         “Account” shall mean an account established and maintained pursuant to Section 8.01 for each Participant, when appropriate, to account for the Participant’s Accrued Benefit. 
		

		
			2.03         (a)           “Affiliate” shall mean any corporation affiliated with the Employer through the action of such corporation’s board 
		

		
			of directors and the Employer’s Board of Directors. 
		

		
			(b)           “Affiliate” shall also mean any corporation which is a member of a controlled group of corporations (as defined in Code Section 414(b)) which includes the Employer; any trade or business (whether or not incorporated) which is under common control (as defined in Code Section 414(c)) with the Employer; any organization (whether or not incorporated) which is a member of an affiliated service group (as defined in Code Section 414(m)) which includes the Employer; and any other entity required to be aggregated with the Employer pursuant to Regulations under Code Section 414(o). 
		

		
			2.04         “Affirmative Election” shall mean an election by an Eligible Participant to (a) have Salary Reduction Contributions made at the percentage of Compensation specified in his or her Salary Reduction Agreement, or (b) not have Salary Reduction Contributions made on his or her behalf. 
		

		
			2.05         “Age” shall mean the age of a person at his or her last birthday. 
		

		
			2.06         “Annuity Starting Date” shall mean the first day of the first period for which the Plan pays an amount as an annuity. In the case of a payment not in an annuity form, Annuity Starting Date shall mean the first day of the first period for which the benefit form is paid. 
		

		
			2.07         “Automatic Contributions” shall mean the Salary Reduction Contributions that result from the operation of this Section 5.05(c) of the Plan. 
		

		

		

		 

		

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			2.08        “Automatic Contribution Arrangement” shall mean the arrangement set forth in Section 5.05 of the Plan pursuant to which, in the absence of an Affirmative Election, an Employee, who is eligible to participate in the Plan is treated as having elected to direct the Employer to reduce his or her Compensation in order that the Employer may make Salary Reduction Contributions to the Plan on behalf of the Participant equal to a uniform percentage of Compensation. 
		

		
			2.09         “Beneficiary” shall mean the person, trust, organization or estate designated to receive Plan benefits payable on or after the death of a Participant.
		

		
			2.10         “Catch-up Contributions” shall mean Salary Reduction Contributions made to the Plan that are in excess of an otherwise applicable Plan limit and that are made by Participants who are Age 50 or over by the end of their taxable years. An “otherwise applicable Plan limit” is a limit in the Plan that applies to Salary Reduction Contributions without regard to Catch-up Contributions, such as the limits on Annual Additions, the dollar limitation on Salary Reduction Contributions under Code Section 402(g) (not counting Catch-up Contributions) and the limit imposed by the Actual Deferral Percentage (ADP) test under Code Section 401(k)(3). Catch-up Contributions for a Participant for a taxable year may not exceed the dollar limit on Catch-up Contributions under Code Section 414(v)(2)(B)(i) for the taxable year. The dollar limit on Catch-up Contributions under Code Section 414(v)(2)(B)(i) is $1,000 for taxable years beginning in 2002, increasing by $1,000 for each year thereafter up to $5,000 for taxable years beginning in 2006 and later years. After 2006, the $5,000 limit will be adjusted by the Secretary of the Treasury for cost-of-living increases under Code Section 414(v)(2)(C). 
		

		
			Catch-up Contributions are not subject to the limits on Annual Additions, are not counted in the ADP test and are not counted in determining the minimum top-heavy allocation under Code Section 416 (but Catch-up Contributions made in prior years are counted in determining whether the Plan is top-heavy). 
		

		
			2.11         “Compensation” shall mean: 
		

		
			(a)            For purposes of Articles IX and X, for purposes of determining a Participant’s Salary Reduction Contributions pursuant to Section 3.01(b), 5.04, and 5.05 and for purposes of determining an Eligible Employee’s Match Contribution under Section 4.02 and Non-Elective Employer Contribution pursuant to Section 4.03, Compensation shall mean the total wages or salary, overtime, bonuses, and any other taxable remuneration paid to an Employee by the Employer during the Plan Year, while the Employee is a Participant, as reported on the Participant’s W-2 for the Plan Year. Provided,  however, that Compensation for this purpose shall be determined without reduction for (i) any Salary Reduction Contributions contributed to the Plan on the Participant’s behalf for the Plan Year and (ii) any other amount which is contributed or deferred by the Employer at the election of a Participant which is not includible in the gross income of the Participant by reason of Code Section 125, 132(f)(4), 402(e)(3), 402(h), or 403(b). 
		

		
			Notwithstanding the above, for purposes of determining a Participant’s Salary Reduction Contributions pursuant to Section 3.01(b), 5.04, and 5.05 and for purposes of determining an Eligible Employee’s Match Contribution under Section 4.02 and Non-Elective Employer Contribution pursuant to Section 4.03, Compensation shall not include: 
		

			
	
			
				 (i)
			

			
	
			
			incentive compensation paid to Participants pursuant to the Employer’s Executive Long Term Performance Unit Plan or pursuant to any similar or successor executive incentive compensation plan; 

		
			 
		

			
	
			
				 (ii)
			

			
	
			
			Employer contributions to a deferred compensation plan or arrangement (other than (i) Salary Reduction Contributions contributed to the Plan on the Participant’s behalf for the Plan Year; and (ii) any other amount which is contributed or deferred by the Employer at the election of a Participant which is not includible in the gross income of the Participant by reason of Code Section 125, 132(f)(4), 402(e)(3), 402(h), or 403(b)) either for the year of deferral or for the year included in the Participant’s gross income; 

		
			(iii)          any income which is received by or on behalf of a Participant in connection with the grant, receipt, settlement, exercise, lapse of risk of forfeiture or restriction on transferability, or disposition of any stock option, stock award, stock grant, stock appreciation right or similar right or award granted under any plan, now or hereafter in effect, of the Employer or any successor to the Employer, the Employer’s parent, any such successor’s parent, any subsidiaries or affiliates of the Employer, or any stock or securities underlying any such option, award, grant or right; 
		

		
			(iv)          severance payments paid in a lump sum, provided that for Plan Years beginning on and after January 1, 2008 such excluded severance payments shall not include any payment of regular compensation for services during the Participant’s regular working hours, or compensation for services outside the Participant’s regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments, if the payment would have been paid to the Participant prior to a severance from employment, if the Participant had continued in employment with the Employer and if the payment is made by the later of 2 1/2 months after the Participant’s severance from employment or by the end of the Plan Year in which the Participant’s severance from employment occurs; 
		

		
			(v)           Code Section 79 imputed income; long term disability and workers’ compensation benefit payments; 
		

		

		

		 

		

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		(vi)          taxable moving expense allowances or taxable tuition or other educational reimbursements; 
		

		
			(vii)for Plan Years commencing after December 31, 1998, compensation paid in the form of commissions; 
		

		
			(viii)non-cash taxable benefits provided to executives, including the taxable value of Employer-paid club memberships, chauffeur services and Employer-provided automobiles; and 
		

		
			(ix)other taxable amounts received other than cash compensation for services rendered, as determined by the Plan Administrator. 
		

		
			 
		

		
			(b)           For purposes of Section 4.04 (Minimum Employer Contributions for Top Heavy Plans) and for purposes of Article VII (Limitations on Allocations) the term “Compensation” means a Participant’s wages, salaries, fees for professional services and other amounts received (without regard to whether or not an amount is paid in cash) for personal services actually rendered in the course of employment with the Employer maintaining the Plan to the extent that the amounts are includible in gross income (including, but not limited to, commissions paid salesmen, compensation for services on the basis of a percentage of profits, commissions on insurance premiums, tips, bonuses, fringe benefits, and reimbursements or other expense allowances under a nonaccountable plan (as described in Section 1.62-2(c) of the Regulations)), and excluding the following: 
		

		
			(i)            Employer contributions to a plan of deferred compensation which are not includible in the Employee’s gross income for the taxable year in which contributed, or Employer contributions under a simplified employee pension plan to the extent such contributions are deductible by the Employee, or any distributions from a plan of deferred compensation; 
		

		
			(ii)           Amounts realized from the exercise of a non-qualified stock option, or when restricted stock (or property) held by an Employee becomes freely transferable or is no longer subject to a substantial risk of forfeiture; 
		

		
			(iii)          Amounts realized for the sale, exchange or other disposition of stock acquired under a qualified stock option; and 
		

		
			(iv)          Other amounts which received special tax benefits. 
		

		
			Notwithstanding the foregoing, Compensation for purposes of the Plan shall also include Employee elective deferrals under Code Section 402(g)(3) and amounts contributed or deferred by the Employer at the election of the Employee and not includible in the gross income of the Employee, by reason of Code Sections 125, 132(f)(4), 402(e)(3), 402(h), and 403(b). 
		

		
			Additionally, amounts under Code Section 125 include any amounts not available to a Participant in cash in lieu of group health coverage because the Participant is unable to certify that he has other health coverage (deemed Code Section 125 compensation). Such an amount will be treated as an amount under Code Section 125 only if the Employer does not request or collect information regarding the Participant’s other health coverage as part of the enrollment process for the health plan. 
		

		
			For purposes of applying the limitations of Article VII, Compensation for a Limitation Year is the Compensation actually paid or includible in gross income during such Year. 
		

		
			 
		

		
			(c)           Notwithstanding (a) and (b) above, for any Plan Year beginning after December 31, 2001, the annual Compensation of each Participant taken into account for determining all benefits provided under the Plan for any Plan Year shall not exceed $200,000, as adjusted for increases in the cost of living in accordance with Section 401(a)(17)(B) of the Code. 
		

		
			Notwithstanding (a) and (b) above, for the Plan Years beginning on or after January 1, 1994 and before January 1, 2002, the annual Compensation of each Participant taken into account for determining all benefits provided under the Plan for any Plan Year shall not exceed $150,000. This limitation shall be adjusted for inflation by the Secretary under Code Section 401(a)(17)(B) in multiples of $10,000 by applying an inflation adjustment factor and rounding the result down to the next multiple of $10,000 (increases of less than $10,000 are disregarded). 
		

		
			The cost-of-living adjustment in effect for a calendar year applies to any period, not exceeding 12 months, over which Compensation is determined beginning in such calendar year. 
		

		
			If Compensation is being determined for a Plan Year that contains fewer than 12 calendar months, then the annual Compensation limit is an amount equal to the annual Compensation limit for the calendar year in which the Compensation period begins multiplied by the ratio obtained by dividing the number of full months in the period by 12. 
		

		
			For purposes of applying the limitations of Article VII with respect to Limitation Years beginning on and after July 1, 2007, the following provisions shall be applicable. 
		

		

		

		 

		

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		(i)Compensation paid after severance from employment. Compensation actually paid or includible in gross income during a Limitation Year shall be adjusted, as set forth herein, for the following types of compensation paid after a Participant’s severance from employment with the Employer (or any Affiliate). However, amounts described in Paragraphs A. and B. below shall only be included in Compensation for such Limitation Year to the extent such amounts are paid by the later of 2 1/2 months after severance from employment or by the end of the Limitation Year that includes the date of such severance from employment. Any other payment of compensation paid after severance of employment that is not described in the following types of compensation shall not be considered Compensation for such Limitation Year, even if payment is made within the time period specified above. 
		

		
			A.           Regular Pay. Compensation shall include regular pay after severance of employment if: (1) The payment is regular compensation for services during the Participant’s regular working hours, or compensation for services outside the Participant’s regular working hours (such as overtime or shift differential), commissions, bonuses, or other similar payments; and (2) The payment would have been paid to the Participant prior to a severance from employment if the Participant had continued in employment with the Employer. 
		

		
			B.            Leave Cashouts And Deferred Compensation. Leave cashouts shall be included in Compensation if those amounts would have been included in the definition of Compensation if they were paid prior to the Participant’s severance from employment, and the amounts are payment for unused accrued bona fide sick, vacation, or other leave, but only if the Participant would have been able to use the leave if employment had continued. In addition, deferred compensation shall be included in Compensation if the compensation would have been included in the definition of Compensation if it had been paid prior to the Participant’s severance from employment, and the compensation is received pursuant to a nonqualified unfunded deferred compensation plan, but only if the payment would have been paid at the same time if the Participant had continued in employment with the Employer and only to the extent that the payment is includible in the Participant’s gross income. 
		

		
			C.           Salary Continuation Payments for Military Service Participants. Compensation shall not include payments to an individual who does not currently perform services for the Employer by reason of qualified military service (as that term is used in Code Section 414(u)(l)) to the extent those payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the Employer rather than entering qualified military service. 
		

		
			D.            Salary Continuation Payments for Disabled Participants. Compensation does not include compensation paid to a Participant who is permanently and totally disabled (as defined in Code Section 22(e)(3)). 
		

		
			(ii) Compensation for a Limitation Year but not paid during the Limitation Year. Compensation for a Limitation Year shall not include amounts earned but not paid during the Limitation Year solely because of the timing of pay periods and pay dates. 
		

		
			(iii) Inclusion of Certain Nonqualified Deferred Compensation Amounts. Compensation for a Limitation Year shall include amounts that are includible in the gross income of a Participant under the rules of Code Section 409A or because the amounts are constructively received by the Participant. 
		

		
			 
		

		
			(d)          For Plan Years beginning on and after January 1, 2008, notwithstanding paragraphs (a), (b) and (c) above, 
		

		
			(i)USERRA. For purposes of Employee and Employer make-up contributions, Compensation during the period of military service shall be deemed to be the Compensation the Employee would have received during such period if the Employee were not in qualified military service, based on the rate of pay the Employee would have received from the Employer but for the absence due to military leave. If the Compensation the Employee would have received during the leave is not reasonably certain, Compensation will be equal to the Employee’s average Compensation from the Employer during the twelve (12) month period immediately preceding the military leave or, if shorter, the Employee’s actual period of employment with the Employer. 
		

		

		

		 

		

			4

		

		

			 

		

 

		
		

		
			(ii)Differential Wage Payments. For years beginning after December 31, 2008, (i) an individual receiving a differential wage payment, as defined by Code Section 3401(h)(2), shall be treated as an Employee of the Employer making the payment, (ii) the differential wage payment shall be treated as Compensation, and (iii) the Plan shall not be treated as failing to meet the requirements of any provision described in Code Section 414(u)(1)(C) by reason of any contribution or benefit which is based on the differential wage payment. Subparagraph (iii) of the foregoing sentence shall apply only if all Employees of the Employer performing service in the uniformed services described in Code Section 3401(h)(2)(A) are entitled to receive differential wage payments (as defined in Code Section 3401(h)(2)) on reasonably equivalent terms and, if eligible to participate in a retirement plan maintained by the Employer, to make contributions based on the payments on reasonably equivalent terms (taking into account Code Sections 410(b)(3), (4), and (5)). 
		

		
			2.12         “Eligible Employee” shall mean an Employee who has satisfied the requirements to participate in this Plan as set forth in Section 3.01. 
		

		
			2.13         “Eligible Participant” shall mean an Eligible Employee subject to the Automatic Contribution Arrangement as provided for in Section 5.05(b) of the Plan. 
		

		
			2.14         “Eligibility Computation Period” shall mean, for Plan Years commencing prior to January 1, 2005, a period of twelve consecutive months commencing on an Employee’s Employment Commencement Date or, if an Employee does not complete at least 1,000 Hours of Service during such initial period, such Employee’s Eligibility Computation Period shall mean the Plan Year commencing with the first Plan Year following the Employee’s Employment Commencement Date and, if necessary, each succeeding Plan Year. 
		

		
			2.15         “Employee” shall mean any individual who is employed by the Employer. 
		

		
			 
		

		
			2.16         “Employer” shall mean The Hanover Insurance Company; provided that, prior to January 1, 2008 “Employer” shall mean First Allmerica Financial Life Insurance Company. 
		

		
			2.17         “Employment Commencement Date” shall mean the date on which an Employee first performs an Hour of Service or, in the case of an Employee who has a One Year Break in Service, the date on which he or she first performs an Hour of Service after such Break. 
		

		
			2.18         “Fiduciary” shall mean any person who (i) exercises any discretionary authority or discretionary control respecting management of the Plan or exercises any authority or control respecting management or disposition of its assets; (ii) renders investment advice for a fee or other compensation, direct or indirect, with respect to any monies or other property of the Plan or has any authority or responsibility to do so; or (iii) has any discretionary authority or discretionary responsibility in the administration of the Plan, including, but not limited to, the Trustee and the Plan Administrator. 
		

		
			2.19         “First Allmerica” shall mean First Allmerica Financial Life Insurance Company. 
		

		
			2.20         “Five Percent Owner” shall mean, in the case of a corporation, any person who owns (or is considered as owning within the meaning of Code Section 416(i)) more than five percent of the outstanding stock of the Employer or stock possessing more than five percent of the total combined voting power of all stock of the Employer. In the case of an Employer that is not a corporation, “Five Percent Owner” shall mean any person who owns or under applicable regulations is considered as owning more than five percent of the capital or profits interest in the Employer. In determining percentage ownership hereunder, employers that would otherwise be aggregated under Code Sections 414(b), (c), and (m) shall be treated as separate employers. 
		

		
			2.21         “Former Participant” shall mean a person on whose behalf an Account is maintained, who was an Eligible Employee but who is not entitled to accrue a benefit under this Plan because he or she has ceased to be eligible to participate in the Plan for any reason. 
		

		
			2.22         “401(k) Account” shall mean the account established and maintained for each Participant who has directed the Employer to make Salary Reduction Contributions to the Trust on his or her behalf or for whom the Employer has made 401(k) Employer Contributions to the Trust on his or her behalf, and all earnings and appreciation thereon, less any withdrawals therefrom and any losses and expenses charged thereto. 
		

		
			2.23         “401(k) Employer Contribution” shall mean a 401(k) contribution made by the Employer to the Trust for Plan Years prior to 1995 pursuant to Section 4.01 of the Plan as in effect prior to 1995. 
		

		
			2.24         “Highly Compensated Employee” shall mean any Employee who: 
		

		
			(a)          was a Five Percent Owner at any time during the Plan Year or the preceding Plan Year; or 
		

		
			 
		

		
			(b)          for the preceding Plan Year: 
		

		
			(i)had Compensation from the Employer in excess of $80,000 (as adjusted pursuant to Code Section 414(q)(1)); and 
		

		

		

		 

		

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		(ii)for such preceding Year was in the top-paid group of Employees for such preceding Year. 
		

		
			For purposes of this Section the “top-paid group” for a Plan Year is the top 20% of Employees ranked on the basis of Compensation paid during such Year. 
		

		
			In addition to the foregoing, the term “Highly Compensated Employee” shall also mean any former Employee who separated from service prior to the Plan Year, performs no service for the Employer during the Plan Year, and was an actively employed Highly Compensated Employee in the separation year or any Plan Year ending on or after the date the Employee attained Age 55. 
		

		
			For purposes of this Section Compensation means Compensation determined for purposes of Article VII (Limitations on Allocations), but, for Plan Years beginning before January 1, 1998, without regard to Code Sections 125, 402(e)(3), and 402(h)(1)(B). 
		

		
			The determination of who is a Highly Compensated Employee, including the determinations of the numbers and identity of Employees in the top-paid group and the Compensation that is considered will be made in accordance with Section 414(q) of the Code and regulations thereunder. 
		

		
			2.25         “Hour of Service” shall mean: 
		

		
			(a)           Each hour for which an Employee is paid, or entitled to payment, for the performance of duties for the Employer. For purposes of the Plan an Employee who is exempt from the requirements of the Fair Labor Standards Act of 1938, as amended, shall be credited with 45 Hours of Service for each complete or partial week he or she would be credited with at least one Hour of Service under this Section 2.25. 
		

		
			(b)          Each hour for which an Employee is paid, or entitled to payment, by the Employer on account of a period of time during which no duties are performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence. Notwithstanding the preceding sentence: 
		

		
			(i)            No more than 1000 hours shall be credited to an Employee under this Subsection (b) on account of any single continuous period during which the Employee performs no duties (whether or not such period occurs in a single computation period); 
		

		
			 
		

		
			(ii)            No hours shall be credited under this Subsection (b) for any payments made or due under a plan maintained solely for the purpose of complying with any applicable worker’s compensation, unemployment compensation or disability insurance laws; and 
		

		
			(iii)          No hours shall be credited under this Subsection (b) for a payment, which solely reimburses an Employee for medical or medically related expenses incurred by the Employee. 
		

		
			For purposes of this Subsection (b) a payment shall be deemed to be made by or due from an Employer regardless of whether such payment is made by or due from the Employer directly, or indirectly, through, among others, a trust fund or insurer, to which the Employer contributes or pays premiums. 
		

		
			(c)           Each hour for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by the Employer. The same Hours of Service shall not be both credited under Subsections (a) or (b), as the case may be, and under this Subsection. No more than 501 Hours shall be credited under this Subsection for a period of time during which an Employee did not or would not have performed duties. 
		

		
			(d)           Special rules for determining Hours of Service under Subsection (b) or (c) for reasons other than the performance of duties.  
		

		
			In the case of a payment which is made or due which results in the crediting of Hours of Service under Subsection (b) or in the case of an award or agreement for back pay, to the extent that such an award or agreement is made with respect to a period during which an Employee performs no duties, the number of Hours of Service to be credited shall be determined as follows: 
		

		
			(i)In the case of a payment made or due which is calculated on the basis of units of time (such as hours, days, weeks or months), the number of Hours of Service to be credited for “exempt” Employees described in Subsection (a) shall be determined as provided in such Subsection. For all other Employees, the Hours of Service to be credited shall be those regularly scheduled hours in such unit of time; provided,  however, that when a non-exempt Employee does not have regularly scheduled hours, such Employee shall be credited with 8 Hours of Service for each workday for which he or she is entitled to be credited with Hours of Service under paragraph (b). 
		

		

		

		 

		

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			(ii)Except as provided in Paragraph (d)(iii), in the case of a payment made or due which is not calculated on the basis of units of time, the number of Hours of Service to be credited shall be equal to the amount of the payment divided by the Employee’s most recent hourly rate of compensation (as determined below) before the period during which no duties are performed. 
		

		
			A.            The hourly rate of compensation of Employees paid on an hourly basis shall be the most recent hourly rate of such Employees. 
		

		
			 
		

		
			B.            In the case of Employees whose compensation is determined on the basis of a fixed rate for specified periods of time (other than hours) such as days, weeks or months, the hourly rate of compensation shall be the Employee’s most recent rate of compensation for a specified period of time (other than an hour), divided by the number of hours regularly scheduled for the performance of duties during such period of time. The rule described in Subsection (d)(i) shall also be applied under this paragraph to Employees without a regular work schedule. 
		

		
			C.            In the case of Employees whose compensation is not determined on the basis of a fixed rate for specified periods of time, the Employee’s hourly rate of compensation shall be the lowest hourly rate of compensation paid to Employees in the same job classification as that of the Employee or, if no Employees in the same job classification have an hourly rate, the minimum wage as established from time to time under Section 6(a)(1) of the Fair Labor Standards Act of 1938, as amended. 
		

		
			(iii) Rule against double credit. An Employee shall not be credited on account of a period during which no duties are performed with more hours than such Employee would have been credited but for such absence. 
		

		
			(e)          Crediting of Hours of Service to computation periods.  
		

		
			(i)            Hours of Service described in Subsection (a) shall be credited to the Employee for the computation period or periods in which the duties are performed. 
		

		
			(ii)           Hours of Service described in Subsection (b) shall be credited as follows:
		

		
			A.            Hours of Service credited to an Employee on account of a payment which is calculated on the basis of units of time (such as hours, days, weeks or months) shall be credited to the computation period or periods in which the period during which no duties are performed occurs, beginning with the first unit of time to which the payment relates
		

		
			 
		

		
			B.            Hours of Service credited to an Employee by reason of a payment which is not calculated on the basis of units of time shall be credited to the computation period in which the period during which no duties are performed occurs, or if the period during which no duties are performed extends beyond one computation period, such Hours of Service shall be allocated between not more than the first two computation periods in accordance with reasonable rules established by the Employer, which rules shall be consistently applied with respect to all Employees within the same job classification, reasonably defined. 
		

		
			(iii)          Hours of Service described in Subsection (c) shall be credited to the computation period or periods to which the award or agreement for back pay pertains, rather than to the computation period in which the award, agreement or payment is made. 
		

		
			(f)          For purposes of the Plan, Hours of Service shall also include Hours of Service determined in accordance with the rules set forth in this Section 2.25: 
		

		
			(i)            with the Employer in a position in which he or she was not eligible to participate in this Plan; or 
		

		
			(ii)           as a Career Agent or General Agent of First Allmerica; or 
		

		
			(iii)          for periods prior to January 1, 1998, with Citizens, Hanover, or as an employee of a General Agent of First Allmerica; or 
		

		
			(iv)          with Financial Profiles, Inc., or Advantage Insurance Network, Affiliates of First Allmerica, including periods of service completed prior to the date each became an Affiliate; or 
		

		
			(v)           for periods prior to January 1, 2008 with First Allmerica; or 
		

		
			(vi)          with an Affiliate. 
		

		

		

		 

		

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			(g)           Rules for Non-Paid Leaves of Absence. For purposes of the Plan, a Participant will also be credited with Hours of Service during any non-paid leave of absence granted by the Employer. Except as provided in Subsection (a) for exempt Employees, the number of Hours of Service to be credited under this Subsection (g) shall be the number of regularly scheduled working hours in each workday during the leave of absence; provided,  however, that no more than the number of Hours in one regularly scheduled work year of the Employer will be credited for each non-paid leave of absence. In the case of a non-exempt Employee without a regular work schedule, the number of Hours to be credited shall be based on a 40-hour workweek and an 8-hour workday. Hours of Service described in this Subsection (g) shall be credited to the Employee for the computation period or periods during which the leave of absence occurs. 
		

		
			 
		

		
			Notwithstanding the foregoing, for Plan Years beginning after December 31, 1998, all Employees (exempt and non-exempt) shall be credited with 8 Hours of Service for each workday for which they are entitled to be credited with Hours of Service for a non-paid leave of absence pursuant to this Subsection (g). 
		

		
			(h)           Rules for Maternity or Paternity Leaves of Absence. In addition to the foregoing rules, solely for purposes of determining whether a One Year Break in Service has occurred in a computation period, an individual who is absent from work for maternity or paternity reasons shall receive credit for the Hours of Service which would otherwise have been credited to such individual but for such absence, or in any case in which such Hours cannot be determined, 8 Hours of Service per day of such absence. Provided,  however, that: 
		

		
			(i)            Hours shall not be credited under both this Paragraph (h) and one of the other Paragraphs of this Section 2.25; 
		

		
			(ii)           no more than 501 Hours shall be credited for each maternity or paternity absence; and 
		

		
			(iii)           if a maternity or paternity leave extends beyond one Plan Year, the Hours shall be credited to the Plan Year in which the absence begins to the extent necessary to prevent a One Year Break in service, otherwise such Hours shall be credited to the following Plan Year. 
		

		
			For purposes of this paragraph, an absence from work for maternity or paternity reasons means an absence (i) by reason of the pregnancy of the individual, (ii) by reason of a birth of a child of the individual, (iii) by reason of the placement of a child with the individual in connection with the adoption of such child by such individual, or (iv) for purposes of caring for such child for a period beginning immediately following such birth or placement. 
		

		
			(i)            Other Federal Law. Nothing in this Section 2.25 shall be construed to alter, amend, modify, invalidate, impair or supersede any law of the United States or any rule or regulation issued under any such law. 
		

		
			2.26         “Internal Revenue Code” or “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. Reference to any section or subsection to the Code, includes reference to any comparable or succeeding provisions of any legislation which amends, supplements or replaces any such section or subsection, and also includes reference to any regulation issued pursuant to or with respect to such section or subsection. 
		

		
			 
		

		
			2.27         “Key Employee”. In determining whether the Plan is top-heavy for Plan Years beginning after December 31, 2001, “Key Employee” shall mean any Employee or former Employee (including any deceased Employee) who at any time during the Plan Year that includes the determination date is an officer of the Employer having an annual Compensation greater than $130,000 (as adjusted under Section 416(i)(l) of the Code for Plan Years beginning after December 31, 2002), a Five Percent Owner, or a 1-percent owner of the Employer having an annual Compensation of more than $150,000. In determining whether a Plan is top heavy for Plan Years beginning before January 1, 2002, “Key Employee” shall mean any Employee or former Employee (including any deceased Employee) who at any time during the 5-year period ending on the determination date, is an officer of the employer having an annual Compensation that exceeds 50 percent of the dollar limitation under Code Section 415(b)(l)(A), an owner (or considered an owner under Code Section 318) of one of the ten largest interests in the Employer if such individual’s Compensation exceeds 100 percent of the dollar limitation under Code Section 415(c)(l)(A), a Five Percent Owner or a 1-percent owner of the Employer who has an annual Compensation of more than $150,000. 
		

		
			The determination of who is a Key Employee will be made in accordance with Section 416(i)(1) of the Internal Revenue Code and the regulations thereunder. For purposes of determining whether a Participant is a Key Employee, the Participant’s Compensation means Compensation as defined for purposes of Article VII, but for Plan Years beginning before January 1, 1998, without regard to Code Sections 125, 402(e)(3), and 402(h)(1)(B). 
		

		
			2.28         “Limitation Year” shall mean a calendar year. The Limitation Year may only be changed by a Plan amendment. If the Plan is terminated effective as of a date other than the last day of the Plan’s Limitation Year, then the Plan shall be treated as if the Plan had been amended to change its Limitation Year and, in any such case, the Defined Contribution Dollar Limitation shall be prorated as prescribed by Treasury Regulation Section 1.415(j)-1(d)(3). 
		

		
			2.29         “Match Contribution” shall mean the contribution made by the Employer to the Trust pursuant to Section 4.02 of the Plan. 
		

		

		

		 

		

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		2.30         “Match Contribution Account” shall mean the account established for each Participant for whom the Employer has allocated Match Contributions to the Trust and all earnings and appreciation thereon, less any withdrawals therefrom and any losses and expenses charged thereto. 
		

		
			2.31         “Non-Elective Employer Contributions” shall mean Employer contributions that are made by the Employer pursuant to Section 4.03 of the Plan. 
		

		
			2.32         “Non-Elective Employer Contribution Account” shall mean the account established for each Employee for whom the Employer has made a Non-Elective Employer Contribution to the Trust and all earnings and appreciation thereon, less any withdrawals therefrom and any losses and expenses charged thereto. 
		

		
			 
		

		
			2.33         “Non-Highly Compensated Employee” shall mean any Employee who is not a Highly Compensated Employee. 
		

		
			2.34         “Non-Key Employee” shall mean any Employee who is not a Key Employee. 
		

		
			2.35         “Normal Retirement Age” shall mean the date on which the Participant attains Age 65. 
		

		
			2.36         “One Year Break in Service” shall mean any vesting computation period during which an Employee does not complete more than 500 Hours of Service. Provided,  however, for Plan Years commencing prior to January 1, 2005, for purposes of Article III, “One Year Break in Service” shall mean an Eligibility Computation Period during which an Employee does not complete more than 500 Hours of Service. 
		

		
			2.37         “Participant” shall mean an Eligible Employee and, where the context requires, a Former Participant. 
		

		
			2.38         “Permissible Withdrawal” shall mean a withdrawal by an Eligible Participant who is enrolled in the Automatic Contribution Account prior to January 1, 2011 pursuant to Section 5.05(e) of this Plan which meets the following rules: 
		

		
			(a)           Election and Timing of Election. The withdrawal is made pursuant to an election by an Eligible Participant and such election is made no later than 90 days after the date of the first Automatic Contribution with respect to the Eligible Participant under the Automatic Contribution Arrangement. The effective date of any such election shall not be after the earlier of (i) the pay date for the second pay period that begins after the date the election is made; and (ii) the first pay date that occurs at least 30 days after the election is made 
		

		
			(b)          Amount of Withdrawal. The amount of such withdrawal shall be equal to the amount of the Automatic Contributions made through the effective date of the Participant’s election (described in (a) above), adjusted for allocable gains and losses to the date of such withdrawal. 
		

		
			2.39         “Plan Administrator” shall mean the Benefits Committee, which shall have fiduciary responsibility for the interpretation and administration of the Plan, as provided for in Article XIV. Members of the Benefits Committee shall be appointed as provided for in Section 15.01 hereof. 
		

		
			2.40         “Plan Year” shall mean a calendar year. 
		

		
			2.41         “Qualified Automatic Contribution Arrangement (“QACA”)” shall mean a qualified automatic contribution arrangement that meets the requirements of Code Section 401(k)(13)(B). Effective for Plan Years beginning on or after January 1, 2009, this Plan is intended to satisfy the requirements of Code Section 401(k)(13)(B) including but not limited to, the automatic enrollment and contribution provisions and the applicable notice requirements of Section 5.05 and the required Employer contributions of the Match Contribution made by the Employer to the Trust pursuant to Section 4.02 of the Plan. Further, this Plan is intended to be an eligible automatic contribution arrangement that satisfies the provisions of Code Section 414(w)(3) with respect to Eligible Participants who are enrolled in the Automatic Contribution Arrangement prior to January 1, 2011. 
		

		
			 
		

		
			2.42         “Qualified Default Investment Alternative” shall mean an investment alternative available to Participants and Beneficiaries that satisfies the requirements of ERISA Section 404(c)(5) and the applicable Department of Labor regulations thereunder and shall be subject to the following rules: 
		

		
			(a)          No Employer Securities. The Qualified Default Investment Alternative does not hold or permit the acquisition of Employer securities, except as permitted by Department of Labor Regulation Section 2550.404c-5(e)(1)(ii); 
		

		
			(b)          Transfer Permitted. The Qualified Default Investment Alternative permits a Participant or Beneficiary to transfer, in whole or in part, his or her investment from the Qualified Default Investment Alternative to any other investment alternative available under the Plan, pursuant to the rules of Department of Labor Regulation Section 2550.404c-5(c)(5); 
		

		
			(c)          Management. The Qualified Default Investment Alternative is: 
		

		
			(1)Managed by: (A) an investment manager, within the meaning of ERISA Section 3(38); (B) a Plan trustee that meets the requirements of ERISA Section 3(38)(A), (B) and (C); or (C) the Sponsor Employer who is a named fiduciary within the meaning of ERISA Section 402(a)(2); 
		

		
			(2)An investment company registered under the Investment Company Act of 1940; or 
		

		

		

		 

		

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		(3)An investment product or fund described in Department of Labor Regulation Section 2550.404c–5(e)(4)(iv) or (v); and 
		

		
			(d)          Types of Permitted Investments. The Qualified Default Investment Alternative must be an investment product or fund described in Department of Labor Regulation Section 2550.404c–5(e)(4). 
		

		
			2.43         “Qualified Domestic Relations Order” shall mean any judgment, decree or order (including approval of a property settlement agreement) which: 
		

		
			(i)           relates to the provision of child support, alimony payments, or marital property rights to a spouse, former spouse, child or other dependent of a Participant; 
		

		
			(ii)           is made pursuant to a state domestic relations law (including a community property law); 
		

		
			 
		

		
			(iii)         constitutes a “qualified domestic relations order” within the meaning of Section 414(p) of the Code; and 
		

		
			(iv)          is entered on or after January 1, 1985. 
		

		
			Effective April 6, 2007, a domestic relations order that otherwise satisfies the requirements for a qualified domestic relations order (QDRO) will not fail to be a QDRO: (i) solely because the order is issued after, or revises, another domestic relations order or QDRO; or (ii) solely because of the time at which the order is issued, including issuance after the annuity starting date or after the Participant’s death. 
		

		
			2.44         “Qualified Early Retirement Age” shall mean the later of: 
		

		
			(i)            Age 55; or 
		

		
			(ii)           the date on which the Participant begins participation. 
		

		
			2.45         “Qualified Joint and Survivor Annuity” shall mean an annuity for the life of the Participant, with a survivor annuity for the life of his or her spouse in an amount equal to 50% of the amount of the annuity payable during the joint lives of the Participant and his or her spouse, and which is the amount of benefit which can be purchased by the Participant’s Accrued Benefit. 
		

		
			2.46         “Regular Account” shall mean the account established and maintained for each Participant for whom the Employer has allocated Regular Employer Contributions to the Trust, and all earnings and appreciation thereon, less any withdrawals therefrom and any losses and expenses charged thereto. 
		

		
			2.47         “Regular Employer Contribution” shall mean a Regular Contribution made by the Employer to the Trust for years prior to 1995 pursuant to Section 4.01 of the Plan as in effect prior to 1995. 
		

		
			2.48         “Rollover Account” shall mean the account established and maintained for each Participant who has made a Rollover Contribution to the Trust or whose accrued benefit from another qualified plan has been transferred to this Trust in accordance with Section 5.03 of the Plan, and all earnings and appreciation thereon, less any withdrawals therefrom and any losses and expenses charged thereto. 
		

		
			2.49         “Rollover Contribution” shall mean a contribution made to the Trust pursuant to Section 5.03 of the Plan. 
		

		
			2.50         “Salary Reduction Agreement” shall mean an agreement between the Employer and an Eligible Employee as set forth in Sections 3.01(b) and 5.04 pursuant to which the Eligible Employee authorizes the Employer to withhold a specified percentage of his or her Compensation (otherwise payable in cash) for deposit to the Plan on behalf of such Employee. 
		

		
			 
		

		
			2.51         “Salary Reduction Contribution” shall mean a pre-tax contribution made by the Employer on behalf of an Eligible Employee pursuant to a Salary Reduction Agreement and or an Automatic Contribution made by the Employer on behalf of an Eligible Participant pursuant to the Automatic Contribution Arrangement provisions of Section 5.05 of the Plan. 
		

		
			2.52         “Suspense Account” shall mean the account established by the Trustee for maintaining contributions and forfeitures which have not yet been allocated to Participants. 
		

		
			2.53         “Tax Deductible Contribution Account” shall mean the account established and maintained for each Participant who has made a Tax Deductible Voluntary Contribution to the Trust, and all earnings and appreciation thereon, less any withdrawals therefrom and any losses and expenses charged thereto. 
		

		
			2.54         “Tax Deductible Voluntary Contribution” shall mean a contribution made to the Trust for years before 1987 and pursuant to Section 5.02 of the Plan as in effect prior to 1995. 
		

		
			2.55         “Top Heavy Plan” shall mean for any Plan Year beginning after December 31, 1983 that any of the following conditions exists: 
		

		
			(i)          If the top heavy ratio (as defined in Article VI) for this Plan exceeds 60 percent and this Plan is not part of any required aggregation group or permissive aggregation group of plans. 
		

		
			(ii)        If this Plan is a part of a required aggregation group of plans (but not part of a permissive aggregation group) and the top heavy ratio for the group of plans exceeds 60 percent. 
		

		

		

		 

		

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		(iii)       If this Plan is a part of a required aggregation group and part of a permissive aggregation group of plans and the top heavy ratio for the permissive aggregation group exceeds 60 percent. 
		

		
			See Article VI for requirements and additional definitions applicable to Top Heavy Plans. 
		

		
			For Plan Years beginning on and after January 1, 2009, the Match Contribution provided for in Section 4.02 may also be used to satisfy the minimum contribution requirement for a Top-Heavy Plan, provided no other contribution is made to the Plan for that Plan Year. Further, notwithstanding anything in the Plan to the contrary, in any Plan Year beginning on and after January 1, 2009 in which Employer contributions to the Plan consist solely of the Match Contribution provided for in Section 4.02, then such Plan will not be treated as a Top Heavy Plan and will be exempt from the top heavy requirements of Code Section 416. Furthermore, if the Plan (but for the prior sentence) would be treated as a Top Heavy Plan because the Plan is a member of an aggregation group which is a top heavy group, then the contributions under the Plan may be taken into account in determining whether any other plan in the aggregation group meets the top heavy requirements of Code Section 416. 
		

		
			 
		

		
			2.56         “Top Heavy Plan Year” shall mean that, for a particular Plan Year, the Plan is a Top Heavy Plan. 
		

		
			2.57         “Totally and Permanently Disabled” shall mean the inability of a Participant to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. 
		

		
			In determining the nature, extent and duration of any Participant’s disability, the Plan Administrator may select a physician to examine the Participant. The final determination of the nature, extent and duration of such disability shall be made solely by the Plan Administrator upon the basis of such evidence as he or she deems necessary and acting in accordance with uniform principles consistently applied. 
		

		
			2.58         “Trustee” shall mean the bank or trust company or person or persons who shall be constituted the original trustee or trustees for the Plan and Trust created therefor, and also any and each successor trustee or trustees. 
		

		
			2.59         “Trust Fund” shall mean, include and consist of any payments made to the Trustee by the Employer under the Plan and Trust Indenture, or the investments thereof, together with all income and gains of every nature thereon which shall be added to the principal thereof by the Trustee, less all losses thereon and all payments therefrom. 
		

		
			2.60         “Trust Indenture” or “Trust” shall mean the Trust Indenture between the Employer and the Trustee in the form annexed hereto, and any and all amendments thereof or thereto. 
		

		
			2.61         “USERRA” shall mean the Uniformed Services Employment and Reemployment Rights Act of 1994, as amended. Notwithstanding any provision of the Plan to the contrary, contributions, benefits, Plan loan repayment, suspensions and service credit with respect to qualified military service will be provided in accordance with Code Section 414(u). 
		

		
			2.62         “Valuation Date” shall mean each day as of which the value of the Trust Fund shall be calculated. The Plan Administrator reserves the right to change the frequency of Valuation Dates; provided,  however, that in no event shall Valuation Dates occur less frequently than once each calendar quarter. 
		

		
			2.63         “Voluntary After-Tax Contributions” shall mean a contribution made to the Trust for years prior to 1995 pursuant to Section 5.01 of the Plan as in effect prior to 1995. 
		

		
			2.64         “Voluntary Contribution Account” shall mean the account established and maintained for each Participant who has made a Voluntary After-Tax Contribution to the Trust, and all earnings and appreciation thereon, less any withdrawals therefrom and any losses and expenses charged thereto. 
		

		
			 
		

		
			2.65         “Year of Service” shall mean, for purposes of determining vesting under Article XIII, the twelve consecutive month period, commencing on the first day an Employee completes an Hour of Service and in which the Employee completes at least 1,000 Hours of Service. Thereafter, for purposes of determining vesting under Article XIII, the determination of a Year of Service will commence on the anniversary of the first day the Employee completed an Hour of Service and the twelve consecutive month period that follows, provided the Employee completes at least 1,000 Hours of Service during such period. 
		

		
			Provided, however, for purposes of determining Plan entry under Article III for Plan Years commencing prior to January 1, 2005, “Year of Service” means an Eligibility Computation Period during which an Employee completes at least 1,000 Hours of Service. 
		

		
			In computing a “Year of Service” for purposes of the Plan, each twelve-month period shall be considered as completed as of the close of business on the last working day, which occurs within such period, provided that the Employee had completed at least 1,000 Hours of Service during the period ending on such date. 
		

		

		

		 

		

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			Notwithstanding any provision of this Plan to the contrary, contributions, benefits and service credit with respect to qualified military service shall be provided in accordance with Section 414(u) of the Internal Revenue Code. 
		

		
			ARTICLE III
		

		
			ELIGIBILITY AND PARTICIPATION
		

		
			 
		

		
			
		

		
			3.01         (a)          In General. Employees who are employed by the Employer on January 1, 2010 and who were eligible to participate in this Plan on December 31, 2009 shall be Participants in this Plan on January 1, 2010.
		

		
			For Plan Years beginning on and after January 1, 2005, an Employee shall be eligible to participate in this Plan upon completion of one Hour of Service, provided the Employee is then employed in an eligible class of Employees. For Plan Years beginning prior to January 1, 2005, an Employee shall be eligible to participate in this Plan on the first day of the calendar month coincident with or following the completion of one Year of Service, provided the Employee is then employed in an eligible class of Employees. 
		

		
			For Plan Years beginning on or after January 1, 2005, an Employee shall be eligible to receive Match Contributions upon completion of one Hour of Service, provided the Employee is then employed in an eligible class of Employees. For Plan Years beginning prior to January 1, 2005, an Employee shall be eligible to receive Match Contributions effective on the first day of the calendar month coincident with or following completion of one Year of Service, provided the Employee is then employed in an eligible class of Employees. 
		

		
			 
		

		
			Notwithstanding the foregoing, the following Employees shall not be eligible to become or remain active Participants hereunder: 
		

		
			(i)               All Employees holding a General Agent’s Contract with the Employer or with an Affiliate; 
		

		
			(ii)               All Employees holding a Career Agent’s or Annuity Specialist’s Contract with the Employer or with an Affiliate; 
		

		
			(iii)            Leased Employees within the meaning of Code Sections 414(n) and (o); 
		

		
			(iv)           A contractor’s employee, i.e., a person working for a company providing goods or services (including temporary employee services) to the Employer or to an Affiliate whom the Employer does not regard to be its common law employee, as evidenced by its failure to withhold taxes from his or her compensation, even if the individual is actually the Employer’s common law Employee; or 
		

		
			(v)            An independent contractor, i.e., a person who is classified by the Employer as an independent contractor, as evidenced by its failure to withhold taxes from his or her compensation, even if the individual is actually the Employer’s common law Employee. 
		

		
			Special rules for certain persons who were employed by One Beacon Insurance Group, LTD. or any business entity affiliated with One Beacon Insurance Group, LTD. immediately before being employed by the Employer are stated in Appendix A attached hereto. 
		

		
			Special rules for certain persons who were employed by (i) Campania Holding Company, Inc. or its direct or indirect subsidiaries; (ii) Benchmark Professional Insurance Services, Inc. or its direct or indirect subsidiaries; or (iii) Insurance Company of the West or its direct or indirect subsidiaries, immediately before being employed by the Employer are stated in Appendix B attached hereto. 
		

		
			Special rules for certain persons who were employed by (i) Professionals Direct, Inc. or its direct or indirect subsidiaries; (ii) Verlan Holdings, Inc. or its direct or indirect subsidiaries; or (iii) AIX Holdings, Inc. or its direct or indirect subsidiaries, immediately before being employed by the Employer are stated in Appendix C attached hereto. 
		

		
			 
		

		
			(b)          Employee Participation. On or after the date an Employee first becomes eligible to participate in the Plan, the Employee may direct the Employer to reduce his or her Compensation in order that the Employer may make Salary Reduction Contributions to the Plan, including Catch-up Contributions, on the Employee’s behalf in accordance with Section 5.04; provided that for Plan Years beginning on January 1, 2009 and thereafter, any Eligible Participant shall be subject to the automatic enrollment and contribution provisions of Section 5.05. 
		

		
			3.02         Classification Changes. In the event of a change in job classification, such that an Employee, although still in the employment of the Employer, no longer is an Eligible Employee, all contributions to be allocated on his or her behalf shall cease and any amount credited to the Employee’s Accounts on the date the Employee shall become ineligible shall continue to vest, become payable or be forfeited, as the case may be, in the same manner and to the same extent as if the Employee had remained a Participant. 
		

		

		

		 

		

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			If a Participant’s Salary Reduction Agreement is terminated because he or she is no longer a member of an eligible class of Employees, but the Participant has not terminated his or her employment, such Employee shall again be eligible to enter into a new Salary Reduction Agreement immediately upon his or her return to an eligible class of Employees. If such Participant terminates his or her employment with the Employer, he or she shall again be eligible to enter into a Salary Reduction Agreement immediately upon his or her recommencement of service as an Eligible Employee. 
		

		
			In the event an Employee who is not a member of the eligible class of Employees becomes a member of the eligible class, such Employee shall be eligible to participate immediately. 
		

		
			3.03         Participant Cooperation. Each eligible Employee who becomes a Participant hereunder thereby agrees to be bound by all of the terms and conditions of this Plan and Trust. 
		

		
			ARTICLE IV
		

		
			EMPLOYER CONTRIBUTIONS AND FORFEITURES
		

		
			4.01         Salary Reduction Contributions. The Employer shall make Salary Reduction Contributions to the Plan and Trust, including Catch-up Contributions described in Code Section 414(v), to the extent and in the manner specified in Sections 3.01(b), 5.04, and 5.05. 
		

		
			Salary Reduction Contributions, including Catch-up Contributions described in Code Section 414(v), shall be allocated to a Participant’s 401(k) Account as soon as administratively feasible after the earliest date on which such contributions can reasonably be segregated from the Employer’s general assets but in no event later than the 15th business day of the month following the month in which the Salary Reduction Contributions would have otherwise been payable to the Participant. 
		

		
			 
		

		
			4.02         Match Contributions.  
		

		
			(a)           For Plan Years beginning on or after January 1, 2009, for each pay period during a Plan Year that a Salary Reduction Contribution is made to the Plan on behalf of a Participant, the Employer shall make a Match Contribution to the Plan on behalf of the Participant equal to 100% of such Salary Reduction Contributions that do not exceed 6% of the Participant’s Compensation for such pay period; provided that no such Match Contribution shall be made with respect to any part or all of any such Salary Reduction Contribution that, when added to other such Salary Reduction Contributions made to the Plan on behalf of the Participant during the Plan Year, would cause the applicable dollar amount under Code Section 402(g)(1)(B) to be exceeded for such Plan Year unless the Salary Reduction Contribution may be treated as a Catch-up Contribution that does not exceed the limitation under Code Section 402(g)(1)(C). All such Match Contributions shall be made to the Match Contribution Account established for the Participant as soon after each such pay period as practicable. 
		

		
			For Plan Years beginning on or after January 1, 2005 and before January 1, 2009, unless otherwise voted by the Board of Directors of the Employer, for each pay period that an eligible Salary Reduction Contribution is made by a Participant to the Trust, not to exceed the Code Section 402(g)(1)(B) limitation and not including Catch-up Contributions, the Employer shall make a Match Contribution to the Trust on the Participant’s behalf equal to 100% of the first 5% of the Participant’s Salary Reduction Contributions, not including Catch-up Contributions, made during the pay period. Such Match Contribution shall be made to the Match Contribution Account established for the Participant. 
		

		
			The Employer shall contribute Match Contributions to the Trust Fund as soon as practicable following the end of each pay period. Such Match Contributions shall be made in cash and shall be allocated to the Match Contribution Account of each Participant. Such Match Contributions shall be invested per the directions of Participants in accordance with Section 16.02. 
		

		
			For Plan Years beginning on and after January 1, 2009, within 30 days following the end of each Plan Year, if required, the Employer shall make a “true-up” Match Contribution to the Match Contribution Account of each Participant employed by the Employer during the Plan Year, such that the total amount of Match Contributions for each Participant for the Plan Year shall be equal to 100% of the Participant’s Salary Reduction Contributions that do not exceed 6% of the Participant’s Compensation for such Plan Year (and not merely 100% of the Participant’s Salary Reduction Contributions that do not exceed 6% of the Participant’s Compensation for each pay period during the Plan Year); provided that no such Match Contribution shall be made with respect to any part or all of any such Salary Reduction Contributions that would cause the applicable dollar amount under Code Section 402(g)(1)(B) to be exceeded for such Plan Year unless the Salary Reduction Contribution can be treated as a Catch-up Contribution that does not exceed the limitation under Code Section 402(g)(1)(C). 
		

		
			 
		

		

		

		 

		

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			For Plan Years beginning on or after January 1, 2005 and before January 1, 2009, within 30 days following the end of each Plan Year, if required, the Employer shall make a “true-up” Match Contribution to the Match Contribution Account of each Participant employed by the Employer on the last day of the Plan Year, such that the Match Contribution for such eligible Participant for the Plan Year shall be 100% of the eligible Employer Match Contribution percentage of each such Participant’s Salary Reduction Contributions made during the entire Plan Year, not including Catch-up Contributions, not merely 100% of the eligible Employer Match Contribution percentage of the Participant’s Salary Reduction Contributions, not including Catch-up Contributions, made each pay period during the Plan Year. 
		

		
			(b)          For Plan Years beginning on or after January 1, 2009, (i) the Match Contributions made pursuant to Section 4.02(a) shall be subject to the withdrawal restrictions set forth in Code Section 401(k)(2)(B) and Treasury Regulation Section 1.401(k)-1(d); and (ii) pursuant to Code Section 401(k)(2)(B) and Treasury Regulations Section 1.401(k)-1(d), such contributions (and earnings thereon) shall not be distributable earlier than severance from employment, death, disability, an event described in Code Section 401(k)(10), or the attainment of age 59 1/2 and shall not be eligible for distribution for reasons of “financial hardship”. 
		

		
			4.03         Non-Elective Employer Contributions.  
		

		
			(a)           For Plan Years beginning on or after January 1, 2010, the Board of Directors of the Employer may, in its discretion, determine to make a Non-Elective Employer Contribution to the Plan on behalf of the Employer for each Eligible Employee who is employed by the Employer on the last day of such Plan Year in an amount equal to a uniform percentage of each such Employee’s Compensation. Any such contribution shall be made in cash to the Non-Elective Employer Contribution Account established for each such Eligible Employee.
		

		
			For Plan Years beginning on or after January 1, 2008 and before January 1, 2010, Eligible Employees who are employed by the Employer on the last day of the Plan Year will receive an Employer paid contribution in an amount equal to 2% of the Employee’s Compensation, unless otherwise voted by the Board of Directors of the Employer. 
		

		
			For Plan Years beginning on or after January 1, 2005 and before January 1, 2008, unless otherwise voted by the Board of Directors of the Employer, Eligible Employees who are employed by the Employer on the last day of the Plan Year will receive an Employer paid contribution, whether or not the Employee has elected to participate in the Plan, equal to 3% of eligible Plan Compensation. 
		

		
			 
		

		
			The contribution shall be made in cash. Such contribution shall be made to the Non-Elective Employer Contribution Account to be established for each such Employee and shall be invested per the direction of the Participant in accordance with Section 16.02 of the Plan. 
		

		
			(b)           Notwithstanding anything in the Plan to the contrary, for the 2006 Plan Year only, and subject to compliance with applicable Code discrimination laws, rules and regulations, all Employees, other than First Allmerica Operating Committee Members, employed by the Employer on December 31, 2006, shall receive an extra Employer paid contribution of $500, whether or not the Employee has elected to participate in the Plan.
		

		
			Provided, however that Employees who voluntarily terminated between January 1, 2007 and March 5, 2007, or Employees who were terminated between such dates for cause, are not eligible for the extra company paid $500 award. 
		

		
			The contribution and extra contribution shall be made in cash. Such contribution and extra contribution shall be made to the Non-Elective Employer Contribution Account established for each eligible Employee and shall be invested per the direction of the Participant in accordance with Section 16.02 of the Plan. 
		

		
			(c)          Notwithstanding any other provision in the Plan to the contrary, for the 2010 Plan Year only, and subject to compliance with applicable Code discrimination laws, rules and regulations, each Participant who was an Employee on December 31, 2009, has been continuously employed from December 31, 2009 through March 1, 2010 and who earned Compensation during the Plan Year ended December 31, 2009, shall receive an Employer paid contribution of $500, whether or not such Employee has elected to make Salary Reduction Contributions to the Plan during such continuous period of employment. This Employer contribution shall be made in cash to the Non-Elective Employer Contribution Account established for any such eligible Employee as soon after March 1, 2010 as is practicable and shall be invested per the direction of the Participant in accordance with Section 16.02 of the Plan. 
		

		

		

		 

		

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			4.04         Minimum Employer Contribution for Top Heavy Plan Years.  
		

		
			(a)           Minimum Allocation for Non-Key Employees. Notwithstanding anything in the Plan to the contrary except (b) through (e) below, for any Top Heavy Plan Year Employer Contributions allocated to the Accounts of each Non-Key Employee Participant shall be equal to at least three percent of such Non-Key Employee’s Compensation (as defined for purposes of Article VII as limited by Section 401(a)(17) of the Code) for the Plan Year. However, should the Employer Contributions allocated to the Accounts of each Key Employee for such Top Heavy Plan Year be less than three percent of each Key Employee’s Compensation, the Employer Contribution allocated to the Accounts of each Non-Key Employee shall be equal to the largest percentage allocated to Accounts of a Key Employee. The preceding sentence shall not apply if this Plan is required to be included in an aggregation group (as described in Section 416 of the Internal Revenue Code) if such plan enables a defined benefit plan required to be included in such group to meet the requirements of Code Section 401(a)(4) or 410. For purposes of determining the percentage of Employer Contributions allocated to the Accounts of Key Employees, Salary Reduction Contributions made on their behalf shall be counted and be considered to be Employer Contributions. However, in determining whether a minimum Employer Contribution has been made to a Non-Key Employee’s Accounts, Salary Reduction Contributions made on his or her behalf shall be excluded and not considered. 
		

		
			(b)          For purposes of the minimum allocations set forth above, the percentage allocated to the Accounts of any Key Employee shall be equal to the ratio of the sum of the Employer Contributions allocated on behalf of such Key Employee divided by the Employee’s Compensation for the Plan Year (as defined for purposes of Article VII), not in excess of the applicable Compensation dollar limitation imposed by Code Section 401(a)(17). 
		

		
			(c)           For any Top Heavy Plan Year, the minimum allocations set forth above shall be allocated to the Accounts of all Non-Key Employees who are Participants and who are employed by the Employer on the last day of the Plan Year, including Non-Key Employee Participants who have failed to complete a Year of Service. 
		

		
			(d)          Notwithstanding anything herein to the contrary, in any Plan Year in which a Non-Key Employee is a Participant in both this Plan and a defined benefit pension plan included in a Required or Permissive Group of Top Heavy Plans, the Employer shall not be required to provide a Non-Key Employee with both the full separate minimum defined benefit plan benefit and the full separate minimum defined Contribution plan allocation described in this Section. Therefore, if the Employer maintains such a defined benefit and defined contribution plan, the top-heavy minimum benefits shall be provided as follows: 
		

		
			(i)            If a Non-Key Employee is a participant in such defined benefit plan but is not a Participant in this defined contribution plan, the minimum benefits provided for Non-Key Employees in the defined benefit plan shall be provided to the Employee if the defined benefit plan is a Top Heavy Plan and the minimum contributions described in this Section 4.04 shall not be provided. 
		

		
			(ii)             If a Non-Key Employee is a participant in such defined benefit plan and is also a Participant in this defined contribution plan, the minimum benefits for Non-Key Employee participants in Top Heavy Plans provided in the defined benefit plan shall not be applicable to any such Non-Key Employee who receives the full maximum contribution described in the preceding sentence. 
		

		
			 
		

		
			Notwithstanding anything herein to the contrary, no minimum contribution will be required under this Plan (or the minimum contribution under this Plan will be reduced, as the case may be) for any Plan Year if the Employer maintains another qualified defined contribution plan under which a minimum contribution is being made for such year for the Participant in accordance with Section 416 of the Internal Revenue Code. 
		

		
			(e)          The minimum allocation required under this Section 4.04 (to the extent required to be nonforfeitable under Section 416(b) of the Code) may not be forfeited under Code Sections 411(a)(3)(B) or 411(a)(3)(D). 
		

		
			4.05        Contributions under USERRA. For Plan Years beginning on and after January 1, 2008, the Employer shall also make Match Contributions, Top-Heavy minimum contributions and any other Employer contribution for the benefit of Participants who are covered by USERRA. Match Contributions under USERRA shall be made in the Plan Year for which the Participant exercises his or her right to make-up elective deferrals contributions (Salary Reduction Contributions) for prior years. Top-Heavy minimum contributions and other Employer contributions for USERRA protected service shall be made during the Plan Year in which the individual returns to employment with the Employer. Employer contributions required under USERRA are not increased or decreased with respect to Plan investment earnings for the period to which such contributions relate. The Employer’s contribution for any Plan Year shall be subject to the limitations on allocations contained in Article VII. 
		

		
			4.06         Application of Forfeitures. Amounts forfeited during a Plan Year shall be used to reduce Match Contributions for that Plan Year and each succeeding Plan Year, if necessary. 
		

		
			4.07         Limitations upon Employer Contributions. In no event shall the Employer contribution for any Plan Year exceed the maximum allowable under Sections 404 and 415 of the Internal Revenue Code or any similar or subsequent provision. 
		

		

		

		 

		

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		4.08         Payment of Contributions to Trustee. The Employer shall make payment of all contributions, including Participant contributions, which shall be remitted to the Employer by payroll deduction or otherwise, directly to the Trustee in accordance with this Article IV but subject to Section 4.09. 
		

		
			4.09         Receipt of Contributions by Trustee. The Trustee shall accept and hold under the Trust such contributions of money, or other property approved by the Employer for acceptance by the Trustee, on behalf of the Employer and Participants as it may receive from time to time from the Employer. All such contributions shall be accompanied by written instructions from the Employer accounting for the manner in which they are to be credited and specifying the appropriate Participant Account to which they are to be allocated. 
		

		
			 
		

		
			ARTICLE V
		

		
			EMPLOYEE CONTRIBUTIONS AND ROLLOVER CONTRIBUTIONS
		

		
			5.01         Voluntary After-Tax Contributions. For Plan Years beginning prior to January 1, 1995, a Participant could contribute Voluntary After-Tax Contributions to the Plan and Trust in each Plan Year during which he or she was a Plan Participant in amounts as determined under the Plan in effect prior to 1995. 
		

		
			The Plan shall separately account for: (i) pre-1987 Voluntary After-Tax Contributions; (ii) investment income attributable to pre-1987 Voluntary After-Tax Contributions; and (iii) post-1986 Voluntary After-Tax Contributions and income attributable to such contributions. 
		

		
			5.02         Tax Deductible Voluntary Contributions. The Plan Administrator will not accept Tax Deductible Voluntary Contributions made for years after 1986. Such contributions made for years prior to that date will be maintained in a separate account which will be nonforfeitable at all times, and which shall include gains and losses in accordance with Section 8.02. 
		

		
			5.03         Rollover Contributions. With the consent of the Plan Administrator, the Trustee may accept funds transferred from other pension, profit sharing or stock bonus plans qualified under Section 401(a) of the Internal Revenue Code or Rollover Contributions, provided that the plan from which such funds are transferred permits the transfer to be made. 
		

		
			In the event of a transfer or Rollover Contribution to this Plan, the Plan Administrator shall maintain a 100% vested and nonforfeitable account for the amount transferred and its share of the Trust Fund’s accretions or losses, to be known as the Participant’s Rollover Account. Transferred and Rollover Contributions shall be separately accounted for. 
		

		
			“Rollover Contribution” means any rollover contribution described in Code Sections 402(c)(4), 403(a)(4), 403(b)(8), 408(d)(3) or 457(e)(16). 
		

		
			An Employee who makes a contribution to the Plan described in this Section shall become a Plan Participant on the date the Trustee accepts the contribution. However, no Employer Contributions will be made on behalf of such Employee, nor will the Employee be eligible to direct the Employer to make Salary Reduction Contributions on his or her behalf, until the Employee satisfies the Plan eligibility requirements for such contributions set forth in Article III. 
		

		
			Notwithstanding the above, for Plan Years beginning January 1, 1999 and thereafter, the Trustee shall no longer accept funds transferred from plans qualified under 401(a) of the Internal Revenue Code unless the transferor plan is maintained by the Employer or by an Affiliate. Notwithstanding the foregoing, for Plan Years beginning on and after January 1, 2011, the Trustee shall not accept funds transferred from any such plan, which would otherwise provide for a life annuity form of payment to the Participant. Rollover Contributions to the Plan shall continue to be allowed in accordance with this Section 5.03. 
		

		
			 
		

		
			5.04         Salary Reduction Contributions.  
		

		
			(a)           An Employee who is eligible to participate in the Plan may execute a Salary Reduction Agreement to reduce his or her Compensation in order to make Salary Reduction Contributions to the Plan, including Catch-up Contributions. The Salary Reduction Agreement shall be made in a form approved by the Plan Administrator (including, if applicable, by means of telephone, computer, or other paperless media). The Compensation of any Eligible Employee electing salary reduction shall be reduced by the whole percentage requested by the Employee; provided,  however, that the Plan Administrator shall identify the maximum whole percentage on an annual basis. Any Salary Reduction Agreement shall become effective as soon as administratively feasible after the Employee elects to have his or her salary reduced. For Plan Years beginning on or after January 1, 2006, except for occasional, bona fide administrative considerations, Salary Reduction Contributions made pursuant to a Salary Reduction Agreement cannot precede the earlier of (1) the performance of services relating to the contribution and (2) when the compensation that is subject to the election would be currently available to the Participant in the absence of an election to defer. 
		

		

		

		 

		

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		A Participant may elect at any time to change or discontinue his or her Salary Reduction Agreement. Unless otherwise agreed to by the Plan Administrator, the election shall become effective as soon as administratively feasible after the Employee elects such change or discontinuance. 
		

		
			(b)          Make-up Elective Deferrals under USERRA. Effective for Plan Years beginning on and after January 1, 2008, a Participant who has the right to make-up elective deferrals (Salary Reduction Contributions) under USERRA shall be permitted to increase his or her elective deferral with respect to a make-up year without regard to any provision limiting contributions for such Plan Year. Make-up contributions shall be limited to the maximum amount permitted under the Plan and the statutory limitations applicable with respect to the make-up year. Employee-related make-up contributions must be made within the time period beginning on the date of reemployment and continuing for the lesser of five (5) years or three (3) times the period of military service. 
		

		
			 
		

		
			For Plan Years beginning prior to January 1, 2009, “Make-up” Salary Reduction Contributions made by reason of an Eligible Employee’s qualified military service under Code section 414(u) shall not be taken into account for any year when calculating an employee’s Actual Deferral Percentage (under Section 9.01(a)) as provided for in Treasury Regulation section 1.401(k)-2(a)(5)(v) and Match Contributions thereon shall not be taken into account for any year when calculating an employee’s Average Contribution Percentage (under Section 10.01(a)) as provided for in Treasury Regulation section 1.401(m)-2(a)(5)(vi). 
		

		
			5.05         Qualified Automatic Contribution Arrangement (“QACA”). 
		

		
			(a)           Effective Date of the QACA. Effective for Plan Years beginning on or after January 1, 2009, the provisions of this Section 5.05 of the Plan shall apply to each Participant subject to the QACA and the Employer will provide the Match Contribution specified in Section 4.02 of the Plan. This Section 5.05 of the Plan supersedes any State (or Commonwealth) law that would directly or indirectly prohibit or restrict the inclusion of an automatic contribution arrangement in the Plan, pursuant to ERISA Section 514(e)(1) and Department of Labor Regulation Section 2550.404c–5(f). 
		

		
			(b)           Participants Subject to the QACA. The following Eligible Employees shall be Eligible Participants subject to the Automatic Contribution Arrangement: 
		

		
			(i)             Each Employee who becomes eligible to participate in the Plan on and after January 1, 2009 and is eligible to make a Salary Reduction Contribution. 
		

		
			(ii)            Each Employee who became eligible to participate in the Plan prior to January 1, 2009 and who is eligible to participate in the Plan on January 1, 2009, except any such Participant who had in effect a Salary Reduction Agreement on such date (regardless of the amount of the Salary Reduction Contribution affirmatively elected under the agreement). 
		

		
			(c)          Automatic Contribution Arrangement. 
		

		
			(i)            Automatic Contributions. Except as provided in Section 5.05(d) of the Plan, an Eligible Participant will be treated as having elected to direct the Employer to reduce his or her Compensation in order that the Employer may make Salary Reduction Contributions to the Plan equal to the following uniform percentages of Compensation: 
		

		
			A.              Initial Period. An Eligible Participant will be treated as having elected to have the Employer make Salary Reduction Contributions to the Plan in an amount equal to 3% of his or her Compensation during the initial period. For this purpose, the initial period begins when the Employee is first subject to the Automatic Contributions default election under this Section 5.05(c)(i) and ends on the last day of the following Plan Year. 
		

		
			 
		

		
			B.              Subsequent Plan Years. For the three Plan Years immediately following the initial period, an Eligible Participant will be treated as having elected to have the Employer make Salary Reduction Contributions to the Plan in the amounts equal to 4%, 5% and 6% respectively, of his or her Compensation. For all Plan Years thereafter, an Eligible Participant will be treated as having elected to have the Employer make Salary Reduction Contributions to the Plan in the amounts equal to 6% of his or her Compensation. 
		

		

		

		 

		

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			C.           Treatment of Rehires. The default percentages of Compensation stated above for the purposes of the Automatic Contributions are based on the date the initial period begins, regardless of whether the Employee continues to be eligible to make Salary Reduction Contributions under the Plan after that date. Thus, the applicable percentage is generally determined based on the number of years since an Automatic Contribution was first made on behalf of an Eligible Participant. However, if Automatic Contributions are not made on behalf of an Eligible Participant for an entire Plan Year (e.g., due to termination of employment), such Eligible Participant shall be treated as having a new initial period for determining the default percentage of Compensation stated above (if Automatic Contributions are to recommence with respect to the Eligible Participant), regardless of what minimum percentage would otherwise apply to that Eligible Participant. 
		

		
			(ii)           Effective Date of Automatic Contributions. The effective date of the first Automatic Contribution provided for in paragraph (i) above, will be as soon after an Eligible Participant becomes subject to the QACA as is practicable, consistent with (a) applicable law, and (b) the objective of affording the Eligible Participant a reasonable period of time after receipt of the notice to make an Affirmative Election (and, an investment election). However, in no event will the Automatic Contribution be effective later than the earlier of (a) the pay date for the second payroll period that begins after the date the QACA safe harbor notice (described in Section 5.05(f) of the Plan) is provided to the Eligible Participant, or (b) the first pay date that occurs at least 30 days after the QACA safe harbor notice is provided to the Eligible Participant. 
		

		
			 
		

		
			(d)          Rules Related to Automatic Contributions. 
		

		
			(i)            Affirmative Election to Override Automatic Contributions. An Eligible Participant will have a reasonable period of time after receipt of the notice to make an Affirmative Election (and, an investment election). The Automatic Contributions provided for in Section 5.05(c) of the Plan shall cease with respect to an Eligible Participant as soon as administratively feasible after the Eligible Participant makes an Affirmative Election. An Eligible Participant’s Affirmative Election will not expire, but will remain in force until changed by the Eligible Participant. An Eligible Participant need not execute a subsequent or new Affirmative Election in order to have the prior or old Affirmative Election apply to override the Automatic Contributions provided for in Section 5.05(c) of the Plan in any subsequent Plan Year. Any subsequent change to an Eligible Participant’s Affirmative Election will be made in accordance with Section 5.04 of the Plan relating to a Participant’s right to elect at any time to change or discontinue his or her Salary Reduction Agreement. 
		

		
			(ii)            Applying Statutory Limits to Automatic Contributions. The Automatic Contributions provided for in Section 5.05(c) of the Plan shall be limited each Plan Year so as not to exceed the limits of Code 
Sections 401(a)(17), 402(g)(1), or 415. 
		

		
			(iii)           No Automatic Contributions during Hardship Suspension. No Automatic Contributions provided in Section 5.05(c) of the Plan shall apply during the six-month period of suspension, under Section 11.02 of the Plan, of a Participant’s right to make Salary Reduction Contributions to the Plan following a distribution for “financial hardship”. 
		

		
			(e)          Permissible Withdrawals. 
		

		
			(i)            Withdrawal Election. An Eligible Participant who is enrolled in the Automatic Contribution Arrangement prior to January 1, 2011 may elect to make a Permissible Withdrawal of the Automatic Contributions that are made to the Plan on his or her behalf. 
		

		
			(ii)            Forfeiture of Match Contribution. Notwithstanding the vesting provisions of this Plan, any amounts attributable to Match Contributions allocated to the Match Contribution Account of an Eligible Participant with respect to Automatic Contributions that have been withdrawn pursuant to this Section 5.05(e) shall be forfeited. In the event that Match Contributions would otherwise be allocated to the Eligible Participant’s Match Contribution Account with respect to Automatic Contributions that have been so withdrawn, the Employer shall not contribute such Match Contributions to the Plan. 
		

		
			 
		

		
			(f)             Default Investment. If an Eligible Participant does not direct the investment of the assets in his or her Account, including the Automatic Contributions and Match Contributions related thereto, then such assets will be invested in a Qualified Default Investment Alternative as provided for in Section 16.03 of the Plan. 
		

		
			(g)           Notice Requirements for QACA Safe Harbor. The notice requirement is satisfied if each Eligible Participant is given an annual notice of the his or her rights and obligations under the Plan and the notice provided satisfies the content requirement and the timing requirement as follows: 
		

		

		

		 

		

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			(i)            The notice shall be sufficiently accurate and comprehensive to inform the Eligible Participant of the Eligible Participant’s rights and obligations under the Plan and written in a manner calculated to be understood by the average Eligible Participant. The notice shall accurately describe: (1) the Match Contribution formula stated in Section 4.02 of the Plan; (2) any other contributions under the Plan and the conditions under which such contributions are made; (3) the type and amount of Compensation that may be deferred under the Plan; (4) how to make cash or deferred elections, including any administrative requirements that apply to such elections; (5) the periods available under the Plan for making cash or deferred elections; (6) withdrawal and vesting provisions applicable to contributions under the Plan; and (7) information that makes it easy to obtain additional information about the Plan; provided that the notice requirement with respect to the information described in items (2), (3), and (4) may be satisfied by cross-reference to the applicable sections of the Plan’s summary plan description. In addition, the notice shall accurately describe: (1) the Automatic Contributions that will be made on behalf of the Eligible Participant in the absence of an Affirmative Election; (2) the Eligible Participant’s right to elect not to have the Automatic Contributions made on his or her behalf (or to elect to have Salary Reduction Contributions made in a percentage of Compensation different than that which is provided for in Section 5.05(c) of the Plan, at the percentage of Compensation specified in his or her Salary Reduction Agreement); (3) how contributions made under the Automatic Contribution Arrangement will be invested in the absence of any investment election by the Eligible Participant; and (4) with respect to Eligible Participants who are enrolled in the Automatic Contribution Account prior to January 1, 2011, the Eligible Participant’s right to make a Permissible Withdrawal of the Automatic Contributions made on his or her behalf and the procedures for doing so. After receipt of the notice described in this paragraph, any Eligible Participant to whom the Automatic Contribution Arrangement relates must have a reasonable period of time before the first Automatic Contribution is made to exercise the rights set forth within the notice including, but not limited to, executing an Affirmative Election to override the Automatic Contributions provided for in Section 5.05(c) of the Plan. 
		

		
			 
		

		
			(ii)            If the notice is provided to Eligible Participants within a reasonable period before the beginning of each Plan Year (or in the Plan Year an Employee becomes eligible, within a reasonable period before the Employee becomes eligible), the Plan shall satisfy the notice requirements. Notwithstanding the foregoing general rule, a notice shall be deemed to have been provided in timely manner if the notice is provided to each Employee who is eligible to participate in the Plan for the Plan Year at least thirty (30) days but no more than ninety (90) days before the beginning of the Plan Year. If an Employee does not receive the notice because he or she only becomes eligible to participate in the Plan after the ninetieth day before the beginning of the Plan Year, the requirement to give the notice will be satisfied if the notice is provided not more than ninety (90) days before the Employee becomes eligible to participate in the Plan, but in no event later than the date the Employee becomes eligible to participate in the Plan. 
		

		
			(iii)           Each Eligible Participant may make or modify a deferral election during the thirty (30) day period immediately following receipt of the notice described above, as provided for in Section 5.04 of the Plan. 
		

		
			(iv)           The Plan may provide the notice in writing or by electronic means. If provided electronically, the notice must be no less understandable than a written paper document and at the time of delivery of the electronic notice, the Employee is advised that he or she may request to receive the notice in writing at no additional charge. 
		

		
			ARTICLE VI
		

		
			PROVISIONS APPLICABLE TO TOP HEAVY PLANS
		

		
			6.01         In general. For any Top Heavy Plan Year, the Plan shall provide the minimum contribution for Non-Key Employees described in Section 4.04. 
		

		
			If the Plan is or becomes a Top Heavy Plan, the provisions of this Article will supersede any conflicting provisions in the Plan. 
		

		
			6.02         Determination of Top Heavy Status.  
		

		
			(a)          This Plan shall be a Top Heavy Plan for any Plan Year commencing after December 31, 1983 if any of the following conditions exists: 
		

		
			(i)           If the top heavy ratio for this Plan exceeds 60 percent and this Plan is not part of any required aggregation group or permissive aggregation group of plans. 
		

		
			 
		

		
			(ii)           If this Plan is a part of a required aggregation group of plans but not part of a permissive aggregation group and the top heavy ratio for the group of plans exceeds 60 percent. 
		

		

		

		 

		

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		(iii)          If this Plan is a part of a required aggregation group and part of a permissive aggregation group of plans and the top heavy ratio for the permissive aggregation group exceeds 60 percent. 
		

		
			(b)          The Plan top heavy ratio shall be determined as follows: 
		

		
			(i)            Defined Contribution Plans Only: If the Employer maintains one or more defined contribution plans (including any Simplified Employee Pension Plan, as defined in Section 408(k) of the Code) and the Employer has not maintained any defined benefit plan which during the 1-year period (5-year period in determining whether the Plan is Top Heavy for Plan Years beginning before January 1, 2002) ending on the determination date(s) has or has had accrued benefits, the top-heavy ratio for this Plan alone or for the required or permissive aggregation group, as appropriate, is a fraction, the numerator of which is the sum of the account balances of all Key Employees as of the determination date(s) (including any part of any account balance distributed in the 1-year period ending on the determination date(s) (5-year period ending on the determination date in the case of a distribution made for a reason other than severance from employment, death or disability and in determining whether the Plan is Top Heavy for Plan Years beginning before January 1, 2002), and the denominator of which is the sum of all account balances (including any part of any account balance distributed in the 1-year period ending on the determination date(s)) (5-year period ending on the determination date in the case of a distribution made for a reason other than severance from employment, death or disability and in determining whether the Plan is Top Heavy for Plan Years beginning before January 1, 2002), both computed in accordance with Section 416 of the Code and the Regulations thereunder. Both the numerator and denominator of the top-heavy ratio are increased to reflect any contribution not actually made as of the determination date, but which is required to be taken into account on that date under Section 416 of the Code and the Regulations thereunder. 
		

		
			(ii)           Defined Contribution and Defined Benefit Plans: If the Employer maintains one or more defined contribution plans (including any Simplified Employee Pension Plan) and the Employer maintains or has maintained one or more defined benefit plans which during the 1-year period (5-year period in determining whether the Plan is Top Heavy for Plan Years beginning before January 1, 2002) ending on the determination date(s) has or has had any accrued benefits, the top-heavy ratio for any required or permissive aggregation group, as appropriate, is a fraction, the numerator of which is the sum of account balances under the aggregated defined contribution plan or plans for all Key Employees, determined in accordance with (i) above, and the present value of accrued benefits under the aggregated defined benefit plan or plans for all Key Employees as of the determination date(s), and the denominator of which is the sum of the account balances under the aggregated defined contribution plan or plans for all Participants, determined in accordance with (i) above, and the present value of accrued benefits under the defined benefit plan or plans for all Participants as of the determination date(s), all determined in accordance with Section 416 of the Code and the Regulations thereunder. The accrued benefits under a defined benefit plan in both the numerator and denominator of the top-heavy ratio are increased for any distribution of an accrued benefit made in the 1-year period ending on the determination date (5-year period ending on the determination date in the case of a distribution made for a reason other than severance from employment, death or disability and in determining whether the Plan is Top Heavy for Plan Years beginning before January 1, 2002). 
		

		
			(iii)           Determination of Values of Account Balances and Accrued Benefits: For purposes of (i) and (ii) above the value of Account balances and the present value of Accrued Benefits will be determined as of the most recent valuation date that falls within or ends with the 12-month period ending on the determination date, except as provided in Section 416 of the Code and the Regulations thereunder for the first and second plan years of a defined benefit plan. The account balances and accrued benefits of a Participant (1) who is not a Key Employee but who was Key Employee in a prior year, or (2) who has not had at least one Hour of Service with the Employer at any time during the 1-year period (five-year period in determining whether the Plan is Top Heavy for Plan Years beginning before January 1, 2002) ending on the determination date will be disregarded. The calculation of the top-heavy ratio and the extent to which distributions, rollovers, and transfers are taken into account will be made in accordance with Section 416 of the Code and the Regulations thereunder. Tax Deductible Voluntary Employee contributions will not be taken into account for purposes of computing the top-heavy ratio. When aggregating plans the value of account balances and accrued benefits will be calculated with reference to the determination dates that fall within the same calendar year. 
		

		
			 
		

		

		

		 

		

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			The Accrued Benefit of a Participant other than a Key Employee shall be determined under (i) the method, if any, that uniformly applies for accrual purposes under all defined benefit plans maintained by the Employer; or (ii) if there is no such method, as if such benefit accrued not more rapidly than the slowest accrual rate permitted under the fractional rule of Section 411(b)(l)(C) of the Code. 
		

		
			(c)            Permissive aggregation group: The required aggregation group of plans plus any other plan or plans of the Employer which, when considered as a group with the required aggregation group, would continue to satisfy the requirements of Section 401(a)(4) and 410 of the Internal Revenue Code. 
		

		
			(d)            Required aggregation group: (i) Each qualified plan of the Employer in which at least one Key Employee participates or participated at any time during the determination period (regardless of whether the Plan has terminated), and (ii) any other qualified plan of the Employer which enables a plan described in (i) to meet the requirements of Section 401(a)(4) or 410 of the Internal Revenue Code. 
		

		
			(e)           Determination date: The last day of the preceding Plan Year. 
		

		
			(f)           Present Value: Present value shall be based on the 1971 Group Annuity Table, unprojected for post-retirement mortality, with no assumption for pre-retirement withdrawal and interest at the rate of 5% per annum. 
		

		
			ARTICLE VII
		

		
			LIMITATIONS ON ALLOCATIONS
		

		
			(See Sections 7.12-7.16 for definitions applicable to this Article VII). 
		

		
			7.01         If the Participant does not participate in, and has never participated in another qualified plan, a welfare benefit fund (as defined in Section 419(e) of the Code), an individual medical account (as defined in Section 415(l)(2) of the Code) or a simplified employee pension (as defined in Section 408(k) of the Code), maintained by the Employer, the amount of Annual Additions which may be credited to the Participant’s Accounts for any Limitation Year will not exceed the lesser of the Maximum Permissible Amount or any other limitation contained in this Plan. If the Employer contribution that would otherwise be contributed or allocated to the Participant’s Account would cause the Annual Additions for the Limitation Year to exceed the Maximum Permissible Amount, the amount contributed or allocated will be reduced so that the Annual Additions for the Limitation Year will equal the Maximum Permissible Amount. 
		

		
			 
		

		
			7.02         Prior to determining the Participant’s actual Compensation for the Limitation Year, the Employer may determine the Maximum Permissible Amount for a Participant on the basis of a reasonable estimation of the Participant’s annual Compensation for the Limitation Year, uniformly determined for all Participants similarly situated. 
		

		
			7.03         As soon as is administratively feasible after the end of the Limitation Year, the Maximum Permissible Amount for the Limitation Year will be determined on the basis of the Participant’s actual Compensation for the Limitation Year. 
		

		
			7.04         Excess Annual Additions. Notwithstanding any provision of the Plan to the contrary, if the Annual Additions (within the meaning of Code Section 415) are exceeded for any Participant, then the Plan may only correct such excess in accordance with the Employee Plans Compliance Resolution System (EPCRS) as set forth in Revenue Procedure 2008-50 or any superseding guidance, including, but not limited to, the preamble of the Final Treasury Regulations under Code Section 415. 
		

		
			 
		

		
			7.05         (a)           Aggregation and Disaggregation of Plans. Sections 7.06 through 7.11 apply if, in addition to this Plan, the
		

		
			Participant is covered under another qualified defined contribution plan, a welfare benefit fund, an individual medical account or a simplified employee pension maintained by the Employer during any Limitation Year. The term “Employer” for this purpose means the Employer that adopts this Plan and all members of a controlled group or an affiliated service group that includes the Employer (within the meaning of Code Sections 414(b), (c), (m) or (o)), except that for purposes of this Section, the determination shall be made by applying Code Section 415(h), and shall take into account tax-exempt organizations under Treasury Regulation Section 1.414(c)-5, as modified by Treasury Regulation Section 1.415(a)-1(f)(1). For purposes of this Section: 
		

		

		

		 

		

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			(i)            A former Employer is a “predecessor employer” with respect to a Participant in a plan maintained by an Employer if the Employer maintains a plan under which the Participant had accrued a benefit while performing services for the former Employer, but only if that benefit is provided under the plan maintained by the Employer. For this purpose, the formerly affiliated plan rules in Treasury Regulation Section 1.415(f)-1(b)(2) apply as if the Employer and predecessor Employer constituted a single employer under the rules described in Treasury Regulation Section 1.415(a)-1(f)(1) and (2) immediately prior to the cessation of affiliation (and as if they constituted two, unrelated employers under the rules described in Treasury Regulation Section 1.415(a)-1(f)(1) and (2) immediately after the cessation of affiliation) and cessation of affiliation was the event that gives rise to the predecessor employer relationship, such as a transfer of benefits or plan sponsorship. 
		

		
			 
		

		
			(ii)           With respect to an Employer of a Participant, a former entity that antedates the Employer is a “predecessor employer” with respect to the Participant if, under the facts and circumstances, the employer constitutes a continuation of all or a portion of the trade or business of the former entity. 
		

		
			(b)          Break-Up of an Affiliate Employer or an Affiliated Service Group. For purposes of aggregating plans for Code Section 415, a “formerly affiliated plan” of an employer is taken into account for purposes of applying the Code Section 415 limitations to the Employer, but the formerly affiliated plan is treated as if it had terminated immediately prior to the “cessation of affiliation.” For purposes of this paragraph, a “formerly affiliated plan” of an Employer is a plan that, immediately prior to the cessation of affiliation, was actually maintained by one or more of the entities that constitute the employer (as determined under the employer affiliation rules described in Treasury Regulation Section 1.415(a)-1(f)(1) and (2)), and immediately after the cessation of affiliation, is not actually maintained by any of the entities that constitute the employer (as determined under the employer affiliation rules described in Treasury Regulation Section 1.415(a)-1(f)(1) and (2)). For purposes of this paragraph, a “cessation of affiliation” means the event that causes an entity to no longer be aggregated with one or more other entities as a single employer under the employer affiliation rules described in Treasury Regulation Section 1.415(a)-1(f)(1) and (2) (such as the sale of a subsidiary outside a controlled group), or that causes a plan to not actually be maintained by any of the entities that constitute the employer under the employer affiliation rules of Treasury Regulation Section 1.415(a)-1(f)(1) and (2) (such as a transfer of plan sponsorship outside of a controlled group). 
		

		
			(c)          Midyear Aggregation. Two or more defined contribution plans that are not required to be aggregated pursuant to Code Section 415(f) and the Regulations thereunder as of the first day of a Limitation Year do not fail to satisfy the requirements of Code Section 415 with respect to a Participant for the Limitation Year merely because they are aggregated later in that Limitation Year, provided that no Annual Additions are credited to the Participant’s Account after the date on which the plans are required to be aggregated. 
		

		
			7.06         The Annual Additions which may be credited to a Participant’s Accounts under this Plan for any such Limitation Year will not exceed the Maximum Permissible Amount reduced by the Annual Additions credited to a Participant’s Account under the other plans, welfare benefit funds, individual medical accounts and simplified employee pensions for the same Limitation Year. If the Annual Additions with respect to the Participant under other defined contribution plans, welfare benefit funds, individual medical accounts and simplified employee pensions maintained by the Employer are less than the Maximum Permissible Amount and the Employer contribution that would otherwise be contributed or allocated to the Participant’s Accounts under this Plan would cause the Annual Additions for the Limitation Year to exceed this limitation, the amount contributed or allocated will be reduced so that the Annual Additions under all such plans and funds for the Limitation Year will equal the Maximum Permissible Amount. If the Annual Additions with respect to the Participant under such other defined contribution plans, welfare benefit funds, individual medical accounts and simplified employee pensions in the aggregate are equal to or greater than the Maximum Permissible Amount, no amount will be contributed or allocated to the Participant’s Accounts under this Plan for the Limitation Year. 
		

		
			7.07         Prior to determining the Participant’s actual Compensation for the Limitation Year, the Employer may determine the Maximum Permissible Amount in the manner described in Section 7.02. 
		

		
			7.08         As soon as is administratively feasible after the end of the Limitation Year, the Maximum Permissible Amount for the Limitation Year will be determined on the basis of the Participant’s actual Compensation for the Limitation Year. 
		

		
			7.09         If, pursuant to Section 7.08, or as a result of the allocation of forfeitures, a Participant’s Annual Additions under this Plan and such other plans would result in an Excess Amount for a Limitation Year, the Excess Amount will be deemed to consist of the Annual Additions last allocated, except that Annual Additions attributable to a simplified employee pension will be deemed to have been allocated first, followed by Annual Additions to a welfare benefit fund or individual medical account, regardless of the actual allocation date. 
		

		
			7.10         If an Excess Amount was allocated to a Participant on an allocation date of this Plan which coincides with an allocation date of another plan, the Excess Amount attributed to this Plan will be the product of: 
		

		
			(i)            the total Excess Amount allocated as of such date, times 
		

		

		

		 

		

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		(ii)           the ratio of (A) the Annual Additions allocated to the Participant for the Limitation Year as of such date under this Plan to (B) the total Annual Additions allocated to the Participant for the Limitation Year as of such date under this and all the other qualified defined contribution plans. 
		

		
			7.11         Any Excess Amount attributed to this Plan will be disposed of in the manner described in Section 7.04. 
		

		
			(Sections 7.12 - 7.16 are definitions used in this Article VII). 
		

		
			7.12         Annual Additions. The sum of the following amounts credited to a Participant’s Accounts for the Limitation Year. 
		

		
			(i)            Employer contributions (including Salary Reduction Contributions); 
		

		
			(ii)           Employee contributions; 
		

		
			(iii)         forfeitures; and 
		

		
			(iv)          allocations under a simplified employee pension. 
		

		
			 
		

		
			Employee and Employer make-up contributions under USERRA received during the current Limitation Year shall be treated as Annual Additions with respect to the Limitation Year to which the make-up contributions are attributable. 
		

		
			For this purpose, any Excess Amount applied under Section 7.11 in the Limitation Year to reduce Employer contributions will be considered Annual Additions for such Limitation Year. 
		

		
			Amounts allocated after March 31, 1984, to an individual medical account, as defined in Section 415(l)(2) of the Internal Revenue Code, which is part of a defined benefit pension plan maintained by the Employer, are treated as Annual Additions to a defined contribution plan. Also, amounts derived from contributions paid or accrued after December 31, 1985, in taxable years ending after such date, which are attributable to post-retirement medical benefits allocated to the separate account of a Key Employee, as defined in Section 419(A)(d)(3) of the Code, or under a welfare benefit fund, as defined in Code Section 419(e), maintained by the Employer, are treated as Annual Additions to a defined contribution plan. 
		

		
			Restorative Payments. Annual Additions shall not include restorative payments. A restorative payment is a payment made to restore losses to a Plan resulting from actions by a fiduciary for which there is reasonable risk of liability for breach of a fiduciary duty under ERISA or under other applicable federal or state law, where Participants who are similarly situated are treated similarly with respect to the payments. Generally, payments are restorative payments only if the payments are made in order to restore some or all of the Plan’s losses due to an action (or a failure to act) that creates a reasonable risk of liability for such a breach of fiduciary duty (other than a breach of fiduciary duty arising from failure to remit contributions to the Plan). This includes payments to a plan made pursuant to a Department of Labor order, the Department of Labor’s Voluntary Fiduciary Correction Program, or a court-approved settlement, to restore losses to a qualified defined contribution plan on account of the breach of fiduciary duty (other than a breach of fiduciary duty arising from failure to remit contributions to the Plan). Payments made to the Plan to make up for losses due merely to market fluctuations and other payments that are not made on account of a reasonable risk of liability for breach of a fiduciary duty under ERISA are not restorative payments and generally constitute contributions that are considered Annual Additions. 
		

		
			Other Amounts. Annual Additions shall not include: (1) The direct transfer of a benefit or employee contributions from a qualified plan to this Plan; (2) Rollover contributions (as described in Code Section 401(a)(31), 402(c)(1), 403(a)(4), 403(b)(8), 408(d)(3), and 457(e)(16)); (3) Repayments of loans made to a Participant from the Plan; (4) Catch-up Contributions as defined in Plan Section 2.10; and (5) Repayments of amounts described in Code Section 411(a)(7)(B) (in accordance with Code Section 411(a)(7)(C)) and Code Section 411(a)(3)(D), as well as Employer restorations of benefits that are required pursuant to such repayments, as provide for in Plan Section 13.11. 
		

		
			 
		

		
			7.13         Defined Contribution Dollar Limitation. $40,000 as adjusted under Code Section 415(d). 
		

		

		

		 

		

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			7.14         Employer. For purposes of this Article, Employer shall mean the Employer that adopts this Plan and all members of a controlled group of corporations (as defined in Section 414(b) of the Code as modified by Section 415(h)), all trades or business under common control (as defined in Code Section 414(c) as modified by Section 415(h) of the Code), or all members of an affiliated service group (as defined in Code Section 414(m) of the Code) of which the Employer is a part, and any other entity required to be aggregated with the Employer pursuant to regulations promulgated under Code Section 414(o). 
		

		
			7.15         Excess Amount. The excess of the Participant’s Annual Additions for the Limitation Year over the Maximum Permissible Amount. 
		

		
			7.16         Maximum Permissible Amount. The maximum Annual Addition that may be contributed or allocated to a Participant’s Accounts under the Plan for any Limitation Year shall not exceed the lesser of: 
		

		
			(i)            the Defined Contribution Dollar Limitation; or 
		

		
			(ii)           100 percent of the Participant’s Compensation for the Limitation Year. 
		

		
			The Compensation limitation referred to in (ii) shall not apply to any contribution for medical benefits (within the meaning of Section 401(h) or Section 419A(f)(2) of the Code) which is otherwise treated as an Annual Addition under Section 415(c)(1) or 419A(d)(2) of the Code. 
		

		
			If a short Limitation Year is created because of an amendment changing the Limitation Year to a different 12-consecutive month period, the maximum permissible amount will not exceed the Defined Contribution Dollar Limitation multiplied by the following fraction: 
		

		
			Number of months in the short Limitation Year
		

		
			12
		

		
			ARTICLE VIII
		

		
			PARTICIPANT ACCOUNTS AND VALUATION OF ASSETS
		

		
			8.01        Participant Accounts. The Trustee shall establish and maintain a 401(k) Account, Match Contribution Account, Non-Elective Employer Contribution Account, Regular Account, Rollover Account, Tax Deductible Contribution Account and Voluntary Contribution Account for each Participant, when appropriate, to account for the Participant’s Accrued Benefit. All contributions by or on behalf of a Participant shall be deposited to the appropriate Account. 
		

		
			 
		

		
			The Plan Administrator shall instruct the Trustee to credit all appropriate amounts to each Participant’s Accounts. The Plan Administrator shall keep records, which shall include the Account balances of each Participant. 
		

		
			8.02         Valuation of Trust Fund. As of each Valuation Date the Trustee shall determine (or cause to be determined) the net worth of the assets of the Trust Fund and report such value to the Plan Administrator in writing. In determining such net worth, the Trustee shall evaluate the assets of the Trust Fund at their fair market value as of such Valuation Date. In making any such valuation of the Trust Fund, the Trustee shall not include any contributions made by the Employer, which have not been allocated to Participant Accounts prior to such Valuation Date. 
		

		
			ARTICLE IX
		

		
			401(k) ALLOCATION LIMITATIONS
		

		
			9.01         Definitions. For purposes of this Article, the following definitions shall be used: 
		

		
			(a)           “Actual Deferral Percentage” or “ADP” means the ratio (expressed as a percentage) of Salary Reduction Contributions, other than Catch-up Contributions, made on behalf of an Eligible Participant to that Participant’s Compensation for the Plan Year. Two Actual Deferral Percentages shall be calculated and used, one including and the second excluding any Salary Reduction Contributions that are included in the Contribution Percentage of the Participant as defined in Plan Section 10.01(b). The Plan Administrator may include 100% vested and non-forfeitable Match Contributions made for the Participant for the Plan Year in the above described numerator, if such inclusion is made on a uniform nondiscriminatory basis for all Participants; however, Match Contributions that are included in the Actual Deferral Percentage of the Participant may not be included in the numerator of the Contribution Percentage of the Participant as defined in Section 10.01(b). To be considered as contributed for a given Plan Year for purposes of inclusion in a given Actual Deferral Percentage, Contributions must be made by the end of the 12-month period immediately following the Plan Year to which the contribution relates. 
		

		

		

		 

		

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			For Plan Years beginning on or after January 1, 2006, if one or more other plans allowing contributions under Code Section 401(k) are considered with this Plan as one for purposes of Code Section 401(a)(4) or 410(b), the Actual Deferral Percentages for all Eligible Employees under all such plans shall be determined as if this Plan and all such other plans were one; provided that for Plan Years beginning on and after January 1, 2006 the requirements of Treasury Regulation section 1.401(k)-1(b)(4)(iii)(B) are met. 
		

		
			 
		

		
			If any Highly Compensated Employee is an Eligible Employee in one or more other plans maintained by the same employer, which allow contributions under Code Section 401(k), the Actual Deferral Percentage for that Employee shall be determined as if this Plan and all such other plans were one; if such plans have different plan years, all contributions that are made under all such plans during the plan year being tested shall be aggregated, without regard to the plan years of the other plans. However, for Plan Years beginning before January 1, 2006, if the plans have different Plan Years, then all such cash or deferred arrangements ending with or within the same calendar year shall be treated as a single arrangement. For Plan Years beginning on or after January 1, 2006, notwithstanding the foregoing, certain plans shall be separate if mandatorily disaggregated under the regulations of Code Section 401(k). 
		

		
			(b)           “Average Actual Deferral Percentage” means the average (expressed as a percentage) of the Actual Deferral Percentages of a group. 
		

		
			(c)           “Excess 401(k) Contributions” means with respect to any Plan Year, the excess of: (i) the aggregate amount of Employer contributions actually taken into account in computing the Actual Deferral Percentages of Highly Compensated Employees for such Plan Year, over (ii) the maximum amount of such contributions permitted by the Actual Deferral Percentage Test (determined by hypothetically reducing the numerators of Highly Compensated Employees in order of their Actual Deferral Percentages beginning with the highest of such percentages). 
		

		
			(d)           “Excess Elective Deferrals” means those Salary Reduction Contributions of a Participant that either (1) are made during the Participant’s taxable year and exceed the dollar limitation under Code Section 402(g) (including, if applicable, the dollar limitation on Catch-up Contributions defined in Code Section 414(v)) for such year; or (2) are made during a calendar year and exceed the dollar limitation under Code Section 402(g) (including, if applicable, the dollar limitation on Catch-up Contributions defined in Code Section 414(v)) for the Participant’s taxable year beginning in such calendar year, counting only Salary Reduction Contributions made under this Plan and any other 401(k) qualified retirement plan, contract or arrangement maintained by the Employer. 
		

		
			9.02         Average Actual Deferral Percentage Tests.  
		

		
			(a)          For Plan Years beginning on or after January 1, 2009, the Plan will be treated as meeting the actual deferral percentage test set forth in Code Section 401(k)(3)(A)(ii) in each Plan Year with respect to which the Qualified Automatic Contribution Arrangement provisions of this Plan remain in effect. 
		

		
			 
		

		
			(b)          For Plan Years beginning before January 1, 2009, the Average Actual Deferral Percentage for Highly Compensated Employees for each Plan Year compared to the Average Actual Deferral Percentage for Non-Highly Compensated Employees for the Plan Year must satisfy one of the following tests: 
		

		
			(i)            The Average Actual Deferral Percentage for Eligible Employees who are Highly Compensated Employees for the Plan Year shall not exceed the Average Actual Deferral Percentage for Non-Highly Compensated Employees for the Plan Year multiplied by 1.25; or 
		

		
			(ii)           The Average Actual Deferral Percentage for Eligible Employees who are Highly Compensated Employees for the Plan Year shall not exceed the Average Actual Deferral Percentage for Non-Highly Compensated Employees for the Plan Year multiplied by 2, provided that the Average Actual Deferral Percentage for Eligible Employees who are Highly Compensated Employees does not exceed the Average Actual Deferral Percentage for Non-Highly Compensated Employees for the Plan Year by more than two (2) percentage points. 
		

		
			A Participant is a Highly Compensated Employee for a particular Plan Year if he or she meets the definition of a Highly Compensated Employee in effect for that Plan Year. Similarly, a Participant is a Non-Highly Compensated Employee for a particular Plan Year if he or she does not meet the definition of a Highly Compensated Employee in effect for that Plan Year. 
		

		
			For Plan Years beginning on or after January 1, 1999, all eligible Non-Highly Compensated Employees who have not met the age and service requirements of Code Section 410(a)(1)(A), may be disregarded in performing the Average Actual Deferral Percentage Tests as provided in Code Section 401(k)(3)(F) and the Regulations thereunder. 
		

		

		

		 

		

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			9.03         Refund of Excess 401(k) Contributions. For Plan Years beginning before January 1, 2009, notwithstanding any other provision of this Plan except Section 9.05, Excess 401(k) Contributions, as adjusted for gain or loss, including for the Plan Year ended December 31, 2007, an adjustment for income for the period between the end of the Plan Year and the date of the distribution (the “gap period”), shall be distributed no later than the last day of each Plan Year to Participants to whose Accounts such Excess 401(k) Contributions were allocated for the preceding Plan Year. The Plan Administrator has the discretion to determine and allocate income using any of the methods set forth below: 
		

		
			(a)           Reasonable method of allocating income. The Plan Administrator may use any reasonable method for computing the income allocable to Excess 401(k) Contributions, provided that the method does not violate Code section 401(a)(4), is used consistently for all Participants and for all corrective distributions under the Plan for the Plan Year, and is used by the Plan for allocating income to Participant’s Accounts. A Plan will not fail to use a reasonable method for computing the income allocable to Excess 401(k) Contributions merely because the income allocable to Excess 401(k) Contributions is determined on a date that is no more than seven (7) days before the distribution. 
		

		
			 
		

		
			(b)          Alternative method of allocating income. The Plan Administrator may allocate income to Excess 401(k) Contributions for the Plan Year by multiplying the income for the Plan Year allocable to the Salary Reduction Contributions and other amounts taken into account for the purposes of the Average Actual Deferral Percentage Tests (set forth in Section 9.02) including contributions made for the Plan Year, by a fraction, the numerator of which is the Excess 401(k) Contributions for the Participant for the Plan Year, and the denominator of which is the sum of the: 
		

		
			(i)            Account balance attributable to Salary Reduction Contributions and other amounts taken into account for the purposes of the Average Actual Deferral Percentage Tests (set forth in Section 9.02) as of the beginning of the Plan Year, and 
		

		
			(ii)           Any additional amount of such contributions made for the Plan Year. 
		

		
			(c)           Safe harbor method of allocating gap period income. The Plan Administrator may use the safe harbor method in this paragraph to determine income on excess contributions for the gap period. Under this safe harbor method, income on Excess 401(k) Contributions for the gap period is equal to ten percent (10%) of the income allocable to Excess 401(k) Contributions for the Plan Year that would be determined under paragraph (b) above, multiplied by the number of calendar months that have elapsed since the end of the Plan Year. For purposes of calculating the number of calendar months that have elapsed under the safe harbor method, a corrective distribution that is made on or before the fifteenth (15th) day of a month is treated as made on the last day of the preceding month and a distribution made after the fifteenth day of a month is treated as made on the last day of the month. 
		

		
			(d)          Alternative method for allocating Plan Year and gap period income. The Plan Administrator may determine the income for the aggregate of the Plan Year and the gap period, by applying the alternative method provided by paragraph (b) above to this aggregate period. This is accomplished by (1) substituting the income for the Plan Year and the gap period, for the income for the Plan Year, and (2) substituting the amounts taken into account for the purposes of the Average Actual Deferral Percentage Tests (set forth in Section 9.02) for the Plan Year and the gap period, for the amounts taken into account for the purposes of the Average Actual Deferral Percentage Tests (set forth in Section 9.02) for the Plan Year in determining the fraction that is multiplied by that income. 
		

		
			Excess 401(k) Contributions are allocated to the Highly Compensated Employees with the largest dollar amounts of Employer contributions taken into account in calculating the Actual Deferral Percentage test for the year in which the excess arose, beginning with the Highly Compensated Employee with the largest dollar amount of such Employer contributions and continuing in descending order until all the Excess 401(k) Contributions have been allocated. For purposes of the preceding sentence, the “largest amount” is determined after distribution of any Excess 401(k) Contributions. 
		

		
			The Plan Administrator shall make every effort to make all required distributions and forfeitures within 2 1/2 months of the end of the affected Plan Year; however, in no event shall such distributions be made later than the end of the following Plan Year. Distributions and forfeitures made later than 2 1/2 months after the end of the affected Plan Year will be subject to tax under Code Section 4979. 
		

		
			All forfeitures arising under this Section shall be applied as specified in Section 4.06 of the Plan and treated as arising in the Plan Year after that in which the Excess 401(k) Contributions were made; however, no forfeitures arising under this Section shall be allocated to the Account of any affected Highly Compensated Employee. 
		

		
			Excess 401(k) Contributions shall be treated as Annual Additions under the Plan. 
		

		
			For a period of four 12-month periods beginning from the given Plan Year, or such other period as the Secretary of the Treasury may designate, the Employer shall maintain records showing what contributions and Compensation were used to satisfy this Section and Section 9.02. 
		

		

		

		 

		

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			9.04         Accounting for Excess 401(k) Contributions. For Plan Years beginning before January 1, 2009, Excess 401(k) Contributions allocated to a Participant shall be distributed from the Participant’s 401(k) Account and Match Contribution Account (if applicable) in proportion to the Participant’s Salary Reduction Contributions and Employer Match Contributions (to the extent used in the Actual Deferral Percentage Test) for the Plan Year. 
		

		
			9.05         Special Contributions. This section shall be effective for Plan Years beginning on and after January 1, 2006 and before January 1, 2009. 
		

		
			(a)          Correction by Employer Contribution. Notwithstanding any other provisions of this Plan except Section 9.09, in lieu of distributing Excess 401(k) Contributions as provided in Section 9.03, the Employer may make 401(k) Employer Contributions on behalf of Non-Highly Compensated Employees that are sufficient to satisfy either of the Average Actual Deferral Percentage Tests. If a failed Average Actual Deferral Percentage Test is to be corrected by making such contributions, then any such corrective contribution made on behalf of any Non-Highly Compensated Employees shall not exceed the targeted contribution limits set forth below, or in the case of a corrective contribution that is a Qualified Matching Contribution, the targeted contribution limit of Section 10.05. 
		

		
			 
		

		
			(b)          Targeted Contribution Limit. Qualified Nonelective Contributions (as defined in Treasury Regulation section 1.401(k)-6) cannot be taken into account in determining the “actual deferral ratio” (ADR) for a Plan Year for a Non- Highly Compensated Employee (NHCE) to the extent such contributions exceed the product of that NHCE’s Code Section 414(s) compensation and the greater of five percent (5%) or two (2) times the Plan’s “representative contribution rate.” Any Qualified Nonelective Contribution taken into account under an Average Contribution Percentage Test under Treasury Regulation Section 1.40l(m)-2(a)(6) (including the determination of the representative contribution rate for purposes of Treasury Regulation section 1.401(m)-2(a)(6)(v)(B)), is not permitted to be taken into account for purposes of this Section (including the determination of the “representative contribution rate” under this Section). For purposes of this Section: 
		

		
			(i)            The Plan’s “representative contribution rate” is the lowest “applicable contribution rate” of any eligible NHCE among a group of eligible NHCEs that consists of half of all eligible NHCEs for the Plan Year (or, if greater, the lowest “applicable contribution rate” of any eligible NHCE who is in the group of all eligible NHCEs for the Plan Year and who is employed by the Employer on the last day of the Plan Year), and 
		

		
			(ii)           The “applicable contribution rate” for an eligible NHCE is the sum of the Qualified Matching Contributions (as defined in Treasury Regulation section 1.401(k)-6) taken into account in determining the ADR for the eligible NHCE for the Plan Year and the Qualified Nonelective Contributions made for the eligible NHCE for the Plan Year, divided by the eligible NHCE’s Code Section 414(s) compensation for the same period. 
		

		
			Qualified Matching Contributions may only be used to calculate an ADR to the extent that such Qualified Matching Contributions are matching contributions that are not precluded from being taken into account under the Average Contribution Percentage Test for the Plan Year under the rules of Treasury Regulation section 1.401(m)-2(a)(5)(ii) and as set forth in Section 10.02 of this Plan. 
		

		
			(c)          Limitation on QNEC’s and QMAC’s. Qualified Nonelective Contributions (as defined in Treasury Regulation section 1.401(k)-6) and Qualified Matching Contributions (as defined in Treasury Regulation section 1.401(k)-6) cannot be taken into account to determine an Actual Deferral Percentage to the extent such contributions are taken into account for purposes of satisfying any other Average Actual Deferral Percentage Test, any Average Contribution Percentage Test, or the requirements of Treasury Regulation section 1.401(k)-3, 1.401(m)-3, or 1.401(k)-4. 
		

		
			9.06         Maximum Salary Reduction Contributions. No Employee shall be permitted to have Salary Reduction Contributions made under this Plan, other than Catch-up Contributions, during any calendar year in excess of $7,000 (or such other amount as is designated by the Secretary of the Treasury as the limit under Code Section 402(g). 
		

		
			 
		

		
			9.07         Participant Claims. Participants under other plans described in Code Sections 401(k), 408(k) or 403(b) may submit a claim to the Plan Administrator specifying the amount of their Excess Elective Deferral. Such claim shall: (i) be in writing; (ii) be submitted no later than March 1 of the year after the Excess Elective Deferral was made; and (iii) state that such amount, when added to amounts deferred under other plans described in Code Sections 401(k), 408(k) or 403(b), exceeds $7,000 (or such other amount as the Secretary of the Treasury may designate). 
		

		

		

		 

		

			27

		

		

			 

		

 

		
		

		
			9.08         Distribution of Excess Elective Deferrals. This section shall be effective for Plan Years beginning on and after January 1, 2006. Notwithstanding any other provision of this Plan, Excess Elective Deferrals adjusted for allocable income (gain or loss), including an adjustment for income for the period between the end of the Plan Year and the date of the distribution (the “gap period”) shall be distributed to the affected Participant no later than the April 15 following the calendar year in which such Excess Elective Deferrals were made. Notwithstanding the forgoing, for Plan Years beginning after December 31, 2007, the requirement that Excess Elective Deferrals be adjusted for allocable income (gain or loss) during gap period income pursuant to Code Section 402(g)(2)(A)(ii) shall no longer apply. 
		

		
			For the purpose of this section, “income” shall be determined and allocated in accordance with the provisions of Section 9.03 of this Plan, except that such section shall be applied (i) by substituting the term “Excess Elective Deferrals” for “Excess 401(k) Contributions” therein, (ii) by ignoring references to “and other amounts taken into account for the purposes of the Average Actual Deferral Percentage Tests (set forth in Section 9.02)”, (iii) by substituting “Excess Elective Deferrals for the taxable year” for “the amounts taken into account under the Average Actual Deferral Percentage Tests for the Plan Year” and (iv) by ignoring the reference to the “Alternative method for allocating Plan Year and gap period income”. 
		

		
			No distribution of an Excess Elective Deferral shall be made unless the correcting distribution is made after the date on which the Plan received the Excess Elective Deferral and both the Participant and the Plan designates the distribution as a distribution of an Excess Elective Deferral. 
		

		
			Notwithstanding any provision of this Plan to the contrary, any Match Contributions plus earnings that are attributable to any Excess Elective Deferrals that have been refunded shall be forfeited. All such forfeitures shall be treated as arising in the Plan Year after that in which the refunded Excess Deferrals were made and shall be used to reduce future Employer Match Contributions. 
		

		
			9.09         Operation in Accordance With Regulations. The determination and treatment of Actual Deferral Percentages and Excess 401(k) Contributions, and the operation of the Average Actual Deferral Percentage Test shall be in accordance with such additional requirements as may be prescribed by the Secretary of the Treasury. 
		

		
			 
		

		
			ARTICLE X
		

		
			401(m) ALLOCATION LIMITATIONS
		

		
			For Plan Years beginning on or after January 1, 2009, the Plan will be treated as meeting the actual contribution percentage test set forth in Code Section 401(m)(2) in each Plan Year with respect to which the Qualified Automatic Contribution Arrangement provisions of this Plan remain in effect. The following provisions of this Article shall apply with respect to Plan Years prior to January 1, 2009 unless otherwise noted. 
		

		
			10.01       Definitions. For purposes of this Article, the following Definitions shall be used: 
		

		
			(a)           “Average Contribution Percentage” means the average (expressed as a percentage) of the Contribution Percentages of a group. 
		

		
			(b)           “Contribution Percentage” means the ratio (expressed as a percentage) of: the Employer Match and Voluntary After Tax Contributions made on behalf of the Participant to the Participant’s Compensation for the Plan Year. For Plan Years beginning on and after January 1, 2006, Salary Reduction Contributions (other than Catch-up Contributions) made on behalf of Participants who are Non-Highly Compensated Employees which could be used to satisfy the Code Section 401(k)(3) limits (set forth in Section 9.02(b) hereof) but are not necessary to be taken into account in order to satisfy such limits, may instead be included in the above described numerator, to the extent permitted by Treasury Regulation Section 1.401(m)-2(a)(6). To be considered as contributed for a given Plan Year for purposes of inclusion in a given Average Contribution Percentage, Contributions must be made by the end of the 12-month period immediately following the Plan Year to which the contribution relates. The Plan Administrator may not include Employer Match Contributions in the numerator to the extent such contributions are included in the Actual Deferral Percentage of the Participant, as defined in Section 9.01(a), and may not include Salary Reduction Contributions unless Section 9.02 can be satisfied by both including and excluding such Salary Reduction Contributions. 
		

		
			For Plan Years beginning on or after January 1, 2006, if one or more other Plans allowing contributions under Code Section 401(k), voluntary after tax contributions or employer match contributions are considered with this Plan as one for purposes of Code Section 401(a)(4) or 410(b), the Contribution Percentages for all Eligible Employees under all such plans shall be determined as if this Plan and all such others were one; provided that for Plan Years beginning on and after January 1, 2006 the requirements of Treasury Regulation section 1.401(m)-1(b)(4)(iii)(B) are met. 
		

		
			 
		

		

		

		 

		

			28

		

		

			 

		

 

		
		

		
			If any Highly Compensated Employee is an eligible to participate in one or more other plans maintained by the same employer, which allow contributions under Code Section 401(k), voluntary after tax contributions or employer match contributions, the Contribution Percentage for that Employee shall be determined as if this Plan and all such other plans were one; if such plans have different plan years, all contributions that are made under all such plans during the plan year being tested shall be aggregated, without regard to the plan years of the other plans. However, for Plan Years beginning before January 1, 2006, if the plans have different plan years, then all such plans having plan years ending with or within the same calendar year shall be treated as a single arrangement. Notwithstanding the foregoing, certain plans shall be separate if mandatorily disaggregated under the regulations of Code Section 401(m). 
		

		
			For Plan Years beginning January 1, 1999 and thereafter, all eligible Non- Highly Compensated Employees who have not met the age and service requirements of section 410(a)(1)(A), may be disregarded in performing the Average Contribution Percentage Tests as provided in Code Section 401(m)(5)(C). 
		

		
			Notwithstanding the foregoing, in determining a Participant’s Contribution Percentage Employer Match Contributions shall not include Match Contributions forfeited because they were attributable to Excess 401(k) Contributions or to Excess Elective Deferrals. 
		

		
			(c)           “Excess 401(m) Contributions” means with respect to any Plan Year, the excess of: (1) the aggregate Contribution Percentage amounts taken into account in computing the numerator of the Contribution Percentage actually made on behalf of Highly Compensated Employees for such Plan Year; over (2) the maximum Contribution Percentage amounts permitted by the Average Contribution Percentage test (determined by hypothetically reducing the numerators of Highly Compensated Employees in order of their Contribution Percentages beginning with the highest of such Percentages). 
		

		
			10.02       Average Contribution Percentage Tests. The Average Contribution Percentage for Highly Compensated Employees for each Plan Year compared to the Average Contribution Percentage for Non-Highly Compensated Employees for the Plan Year must satisfy one of the following tests: 
		

		
			(i)            The Average Contribution Percentage for Eligible Employees who are Highly Compensated Employees for the Plan Year shall not exceed the Average Contribution Percentage for Non-Highly Compensated Employees for the Plan Year multiplied by 1.25; or 
		

		
			(ii)           The Average Contribution Percentage for Eligible Employees who are Highly Compensated Employees for the Plan Year shall not exceed the Average Contribution Percentage for Non-Highly Compensated Employees for the Plan Year multiplied by 2, provided that the Average Contribution Percentage for Eligible Employees who are Highly Compensated Employees does not exceed the Average Contribution Percentage for Non-Highly Compensated Employees for the Plan Year by more than two (2) percentage points. 
		

		
			10.03       Refund and Forfeiture of Excess 401(m) Contributions. For Plan Years beginning on or after January 1, 2006, notwithstanding any other provision of this Plan except Sections 10.05 and 10.06, Excess 401(m) Contributions adjusted for allocable income (gain or loss), including an adjustment for income for the period between the end of the Plan Year and the date of the distribution (the “gap period”) shall be distributed to affected Highly Compensated Employees. Notwithstanding the forgoing, for Plan Years beginning after December 31, 2007, the requirement that Excess 401(m) Contributions be adjusted for gap period income shall no longer apply. 
		

		
			For the purpose of this section, “income” shall be determined and allocated in accordance with the provisions of Section 9.03 of this Plan, except that such section shall be applied (i) by substituting the term “Excess 401(m) Contributions” for “Excess 401(k) Contributions” therein, and (ii) by substituting amounts taken into account for the purposes of the Average Contribution Percentage Tests for amounts taken into account for the purposes of the Average Actual Deferral Percentage Tests. 
		

		
			The Plan Administrator shall make every effort to refund all Excess 401(m) Contributions within 2 1/2 months of the end of the affected Plan Year; however, in no event shall Excess 401(m) Contributions be refunded later than the end of the following Plan Year. Distributions made later than 2 1/2 months after the end of the affected Plan Year will be subject to tax under Code Section 4979. 
		

		
			Notwithstanding any provision of this Plan to the contrary, any Match Contributions plus earnings that are attributable to any Excess 401(m) Contributions that have been refunded shall be forfeited. All such forfeitures shall be treated as arising in the Plan Year after that in which the refunded Excess 401(m) Contributions were made and shall be used to reduce future Employer Match Contributions. 
		

		
			For a period of four 12-month periods beginning from the given Plan Year, or such other period as the Secretary of the Treasury may designate, the Employer shall maintain records showing what contributions and compensation were used to satisfy this Section and Section 10.02. 
		

		

		

		 

		

			29

		

		

			 

		

 

		10.04       Accounting for Excess 401(m) Contributions. Excess 401(m) Contributions allocated to a Participant shall be forfeited, if forfeitable or distributed on a pro-rata basis from the Participant’s Voluntary After Tax Contribution Account, 401(k) Account and Match Contribution Account. 
		

		
			10.05       Special 401(k) Employer Contributions. For Plan Years beginning on and after January 1, 2006: 
		

		
			(a)          Correction by Employer Contribution. Notwithstanding any other provisions of this Plan except Section 10.07, in lieu of refunding Excess 401(m) Contributions as provided in Section 10.03, the Employer may make 401(k) Employer Contributions on behalf of Non-Highly Compensated Employees that are sufficient to satisfy the Average Contribution Percentage test. If a failed Average Contribution Percentage Test is to be corrected by making such contributions, then any such corrective contribution made on behalf of any Non-Highly Compensated Employees shall not exceed the targeted contribution limits set forth below. 
		

		
			(b)          Targeted Matching Contribution Limit. A Match Contribution with respect to a Salary Reduction Contribution for a Plan Year is not taken into account under the Actual Contribution Percentage Test for a NHCE to the extent it exceeds the greatest of: 
		

		
			(i)             five percent (5%) of the NHCE’s Code Section 414(s) compensation for the Plan Year; 
		

		
			(ii)            the NHCE’s Salary Reduction Contributions for the Plan Year; and 
		

		
			(iii)           the product of two (2) times the Plan’s “representative matching rate” and the NHCE’s Salary Reduction Contributions for the Plan Year. 
		

		
			For purposes of this Section, the Plan’s “representative matching rate” is the lowest “matching rate” for any eligible NHCE among a group of NHCEs that consists of half of all eligible NHCEs in the Plan for the Plan Year who make Salary Reduction Contributions for the Plan Year (or, if greater, the lowest “matching rate” for all eligible NHCEs in the Plan who are employed by the Employer on the last day of the Plan Year and who make Salary Reduction Contributions for the Plan Year). 
		

		
			For purposes of this Section, the “matching rate” for an Employee generally is the matching contributions made for such Employee divided by the Employee’s Salary Reduction Contributions for the Plan Year. If the matching rate is not the same for all levels of Salary Reduction Contributions for an Employee, then the Employee’s “matching rate” is determined assuming that an Employee’s Salary Reduction Contributions are equal to six percent (6%) of Code Section 414(s) compensation. 
		

		
			(c)           Targeted QNEC limit. Qualified Nonelective Contributions (as defined in Treasury Regulation section 1.40l(k)-6) cannot be taken into account under the Actual Contribution Percentage Test for a Plan Year for a NHCE to the extent such contributions exceed the product of that NHCE’s Code Section 414(s) compensation and the greater of five percent (5%) or two (2) times the Plan’s “representative contribution rate.” Any Qualified Nonelective Contribution taken into account under an Actual Deferral Percentage Test under Treasury Regulation section 1.401(k)-2(a)(6) (including the determination of the “representative contribution rate” for purposes of Treasury Regulation section 1.401(k)-2(a)(6)(iv)(B)) is not permitted to be taken into account for purposes of this Section (including the determination of the “representative contribution rate” for purposes of subsection (i) below). For purposes of this Section: 
		

		
			(i)            The Plan’s “representative contribution rate” is the lowest “applicable contribution rate” of any eligible NHCE among a group of eligible NHCEs that consists of half of all eligible NHCEs for the Plan Year (or, if greater, the lowest “applicable contribution rate” of any eligible NHCE who is in the group of all eligible NHCEs for the Plan Year and who is employed by the Employer on the last day of the Plan Year), and 
		

		
			 
		

		
			(ii)           The “applicable contribution rate” for an eligible NHCE is the sum of the matching contributions (as defined in Treasury Regulation section 1.401 (m)-l(a)(2)) taken into account in determining the “actual contribution ratio” for the eligible NHCE for the Plan Year and the Qualified Nonelective Contributions made for that NHCE for the Plan Year, divided by that NHCE’s Code section 414(s) compensation for the Plan Year. 
		

		
			10.06       Order of Determinations. The determination of Excess 401(m) Contributions shall be made after first determining Excess Elective Deferrals, and then determining Excess 401(k) Contributions. 
		

		
			10.07       Operation in Accordance With Regulations. The determination and treatment of Contribution Percentages and Excess 401(m) Contributions, and the operation of the Average Contribution Percentage Test shall be in accordance with such additional requirements as may be prescribed by the Secretary of the Treasury. 
		

		

		

		 

		

			30

		

		

			 

		

 

		
		

		
			ARTICLE XI
		

		
			IN-SERVICE WITHDRAWALS
		

		
			11.01       Withdrawals from Tax Deductible Contribution or Voluntary Contribution Accounts. A Participant shall have the right at any time to request the Plan Administrator for a withdrawal in cash of amounts in his or her Tax Deductible Contribution Account or Voluntary Contribution Account. 
		

		
			11.02       Withdrawals from Match Contribution, 401(k) and Non-Elective Employer Contribution Accounts. At any time after a Participant attains Age 59 1/2 or is Totally and Permanently Disabled, a Participant shall have the right to request the Plan Administrator for a withdrawal in cash of amounts from the vested portion of his or her Match Contribution or 401(k) Account. During the period beginning January 1, 2004 and ending April 27, 2010 and on and after the date of the compliance letter issued by the Internal Revenue Service in response to the voluntary correction compliance submission (filed by the Plan Sponsor October 29, 2010) that approves the amendment adding this sentence to the Plan, a Participant who has attained age 591/2 or is Totally and Permanently Disabled may also withdraw any part or all of the vested portion of his or her Non-Elective Employer Contribution Account. For Plan Years beginning after 1988, a Participant shall have the right at any time to request the Plan Administrator for a withdrawal in cash of Salary Reduction Contributions, with earnings accrued thereon as of December 31, 1988 for “financial hardship”. For Plan Years beginning after 1991, financial hardship distributions may be increased by 401(k) Employer Contributions plus earnings thereon, as of December 31, 1988. 
		

		
			During the period beginning on November 10, 2008 and ending May 26, 2010, a Participant shall have the right to request the Plan Administrator for a “financial hardship” withdrawal in cash which may be funded as provided for above and with amounts from the vested portion of the Participant’s Match Contribution and Non-Elective Employer Contribution Accounts; provided that in the case of the Participant’s Match Contribution Account, any such withdrawal shall be limited to amounts from the portion of the Participant’s Match Contribution Account which is attributable to Match Contributions credited to the Participant’s Match Contribution Account for the Plan Years ending December 31, 2005, 2006, 2007, and 2008 as adjusted for earnings and losses. 
		

		
			The Plan Administrator shall determine whether an event constitutes a financial hardship. Such determination shall be based upon non-discriminatory rules and procedures, which shall be conclusive and binding upon all persons. 
		

		
			The processing of applications and any distributions of amounts under this Section shall be made as soon as administratively feasible. The amount of a distribution based upon “financial hardship,” less any income and penalty taxes, cannot exceed the amount required to meet the immediate financial need created by the hardship and not reasonably available from other resources of the Participant. 
		

		
			In determining whether a hardship distribution is permissible the following special rules shall apply: 
		

		
			(i)            The following are the only financial needs considered immediate and heavy: deductible medical expenses (whether incurred or necessary to obtain medical care)(within the meaning of Section 213(d) of the Code) of the Employee, the Employee’s spouse, children, or dependents (within the meaning of Code Section 152); the purchase (excluding mortgage payments) of a principal residence for the Employee; payment of tuition, related educational fees, and room and board expenses for the next twelve months of post-secondary education for the Employee, the Employee’s spouse, children or dependents; or the need to prevent the eviction of the Employee from, or a foreclosure on the mortgage of, the Employee’s principal residence. 
		

		
			(ii)            A distribution will be considered as necessary to satisfy an immediate and heavy financial need of the Employee only if: 
		

		
			A.            The Employee has obtained all distributions, other than hardship distributions, and all nontaxable loans under all plans maintained by the Employer; 
		

		
			 
		

		
			B.            All plans maintained by the Employer provide that the Employee’s Salary Reduction Contributions (and any other Employee contributions) will be suspended for six months (twelve months for hardship distributions made prior to January 1, 2002) after the receipt of the hardship distribution; provided that in the case of an Eligible Participant, Automatic Contributions shall resume at the end of such suspension period subject to the provisions of Section 5.05 of the Plan; 
		

		
			C.            The distribution, less any income and penalty taxes, is not in excess of the amount of an immediate and heavy financial need; and 
		

		

		

		 

		

			31

		

		

			 

		

 

		
		

		
			D.            In addition for hardship distributions made before 2002, all plans maintained by the Employer provide that the Employee may not make Salary Reduction Contributions for the Employee’s taxable year immediately following the taxable year of the hardship distribution in excess of the applicable limit under Section 402(g)(1) of the Code for such taxable year less the amount of such Salary Reduction Contributions for the taxable year of the hardship distribution. 
		

		
			11.03       Withdrawals from Regular or Rollover Accounts. Once a Participant has participated in the Plan for two years, at any time thereafter the Participant shall have the right at any time to request the Plan Administrator for a withdrawal in cash of amounts allocated to his or her Rollover Account. For Plan Years beginning January 1, 1999, and thereafter, the Participant may request a withdrawal of cash amounts allocated to his or her Rollover Account immediately upon the Trustee’s receipt of such Rollover Contribution. Once a Participant’s Regular Account is 100% vested the Participant shall have the right at any time to request the Plan Administrator for a withdrawal in cash of amounts allocated to such Account; provided,  however, that unless the Participant is over Age 59 1/2 or is Permanently and Totally Disabled, the amount subject to withdrawal shall not include amounts attributable to contributions made to the Regular Account during the two-year period preceding the date of payment. 
		

		
			11.04       Rules for In-Service Withdrawals. The Plan Administrator may impose a dollar minimum for partial withdrawals. If the amount in the Participant’s appropriate Account is less than the minimum, the Plan Administrator shall pay the Participant the entire amount then in the Participant’s Account from which the withdrawal is to be made if a withdrawal of the entire amount is otherwise permissible under the rules set forth in this Article. If the entire amount cannot be paid under such rules, whatever amount is permissible shall be paid. 
		

		
			 
		

		
			In the case of a withdrawal from a Rollover Account described in Section 13.03, if necessary to comply with the joint and survivor rules of Code Sections 401(a)(11) and 417, the Plan Administrator shall require the consent of any Participant’s spouse before making any in-service withdrawal. Any such consent shall satisfy the requirements of Section 13.08. 
		

		
			Any amount to be withdrawn shall be payable as of the Valuation Date coincident with or next following the date which is 15 days following receipt of the written request by the Plan Administrator. 
		

		
			ARTICLE XII
		

		
			PLAN LOANS
		

		
			12.01       General Rules. Upon the application of any Participant, Beneficiary or, for Plan Years beginning prior to January 1, 1999, an alternate payee entitled to Plan benefits pursuant to a Qualified Domestic Relations Order, the Plan Administrator may enter into a loan agreement with such person and authorize the Trustee to make a loan pursuant thereto. The amount of any such loan and the provisions for its repayment shall be in accordance with such non-discriminatory rules and procedures as are adopted by the Plan Administrator and uniformly applied to all borrowers. Such written procedures shall be part of this Plan document. 
		

		
			Applications for loans will be made to the Plan Administrator using forms provided by the Plan Administrator. Loan applications meeting the requirements of this Article will be granted and all borrowers must execute a promissory note meeting the requirements of this Article. 
		

		
			Plan loans shall be granted on a uniform nondiscriminatory basis, so that they are available to all borrowers on a reasonably equivalent basis and are not made available to highly compensated Employees or officers of the Employer in an amount greater than the amount made available to other Employees. Loans will be made available to Former Participants to the extent required by regulations issued by the Department of Labor under Section 408(b) of ERISA and to other Former Participants as is needed to satisfy Code Section 401(a)(4) and the Regulations promulgated thereunder. Such loans shall be adequately secured, shall bear a reasonable rate of interest and shall provide for periodic repayment over a reasonable period of time, all in accordance with the Plan Administrator’s rules and procedures for Plan loans. 
		

		
			To the extent required under Code Sections 401(a)(11) and 417 and the Regulations promulgated thereunder, a Participant must obtain the consent of his or her spouse, if any, within the 90-day period (180-day period for Plan Years beginning January 1, 2007 and thereafter) before the time the Participant’s Accrued Benefit is used as security for a Plan loan. A new consent is required if the Accrued Benefit is used for any increase in the amount of security. The consent shall comply with the requirements of Section 417 of the Internal Revenue Code, but shall be deemed to meet any requirements contained in such section relating to the consent of any subsequent spouse. 
		

		
			 
		

		
			Tax Deductible Voluntary Contributions, plus earnings thereon, may not be used as security for Plan loans. 
		

		
			The Plan Administrator may not require a minimum loan amount greater than $1,000. 
		

		

		

		 

		

			32

		

		

			 

		

 

		
		

		
			No loan shall be made to the extent such loan when added to the outstanding balance of all other loans to the borrower would exceed one-half ( 1/2) of the present value of the nonforfeitable Accrued Benefit of the borrower under the Plan (but not more than $50,000 reduced by the difference between the highest outstanding balance during the previous 365 days and the current outstanding balance). 
		

		
			For purposes of calculating the above limitations, all loans and accrued benefits from all plans of the Employer and other members of a group of employers described in Code Sections 414(b), (c) and (m) are aggregated. 
		

		
			The Plan Administrator shall determine a reasonable rate of interest for each loan by identifying the rate(s) charged for similar and equivalent commercial loans by institutions in the business of making loans. No loan shall be granted to any borrower or other person who already has a total of two loans or more outstanding under this Plan or any other plan maintained by the Employer (or five loans outstanding for Plan Years beginning before January 1, 1996) or who is in default on any loan. 
		

		
			The Plan Administrator may direct the Trustee to deduct from a Participant’s Accounts under the Plan a reasonable fee (as determined by the Committee) to offset the cost of processing and administering the loan. 
		

		
			12.02       Loan Repayments. The borrower shall repay any loan in accordance with the loan agreement. Loans shall provide for periodic repayment, with payment to be no less frequent than quarterly over a period not to exceed five (5) years; provided,  however, that loans used to acquire any dwelling unit which, within a reasonable time, is to be used (determined at the time the loan is made) as a principal residence of a Participant, may provide for periodic repayment, with payment to be no less frequent than quarterly over a reasonable period of time that exceeds five (5) years. 
		

		
			In the event the loan is not repaid within the time period prescribed, the Plan Administrator shall direct the Trustee to deduct the total amount due and payable, plus interest thereon, from distributable amounts in the borrower’s Accounts. If distributable amounts in the borrower’s Accounts are not sufficient to repay such amount, the Plan Administrator shall enforce the terms of any agreement providing additional security for the loan and shall pursue such other remedies available at law to collect the indebtedness. 
		

		
			In the event of a loan default, attachment of the borrower’s Accrued Benefit will not occur until a distributable event occurs in the Plan. Default shall occur upon the earlier of any uncured failure to make payments in accordance with the promissory note or the death of the borrower. 
		

		
			 
		

		
			Loan repayments will be suspended under this Plan as permitted under 414(u)(4) of the Internal Revenue Code. 
		

		
			ARTICLE XIII
		

		
			RETIREMENT, TERMINATION AND DEATH BENEFITS
		

		
			13.01       Retirement or Termination from Service. The Accrued Benefit of each Employee who was hired prior to December 2, 1986 and who became a Participant in the Plan on or prior to January 1, 1989, shall be 100% vested and nonforfeitable at all times. The Regular Account of Employees who are hired on or after December 2, 1986 and who become Participants after December 31, 1988 shall vest according to the following schedule: 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Completed Years of Service

					
						 

					
					
						Vested
Percentage 

					
						 

				
	
					
						Less Than 2

					
0 
				
	
					
						2.........................................................................................................

					
25 
				
	
					
						3.........................................................................................................

					
50 
				
	
					
						4.........................................................................................................

					
75 
				
	
					
						5.........................................................................................................

					
100 
				

		
			The Match Contribution and Non-Elective Employer Contribution Accounts of each Employee who was hired after December 1, 1986 shall be 50% vested and nonforfeitable after the completion of one Year of Service and 100% vested and nonforfeitable after the completion of two Years of Service. Provided,  however, that the Match Contribution and Non-Elective Employer Contribution Accounts of such Employees shall be 100% vested and nonforfeitable at all times for such Employees who completed at least one Hour of Service on or before December 31, 2004. 
		

		
			Any amendment to the above schedule shall comply with the requirements of Section 19.03 of the Plan. 
		

		
			Notwithstanding the foregoing, each actively employed Participant’s Accrued Benefit shall become 100% vested and nonforfeitable when the Participant attains his or her Normal Retirement Age, dies, or becomes Totally and Permanently Disabled. 
		

		
			The Salary Reduction Contributions, Employer Match Contributions contributed to the Plan for Plan Years commencing prior to January 1, 2005, 401(k) Employer Contributions, Tax Deductible Contributions and Voluntary After-Tax Contributions of all Participants, plus earnings thereon, shall be 100% vested and nonforfeitable at all times. 
		

		

		

		 

		

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			Upon a Participant’s attainment of his or her Normal Retirement Age or termination of employment, the Participant shall be entitled to a benefit that can be provided by the value of his or her vested Accrued Benefit in accordance with the further provisions of this Article. 
		

		
			The Plan Administrator shall notify the Trustee when the Normal Retirement Age or termination of employment of each Participant shall occur and shall also advise the Trustee as to the manner in which retirement or termination benefits are to be distributed to a Participant, subject to the provisions of this Article. Upon receipt of such notification and subject to the other provisions of this Article, the Trustee shall take such action as may be necessary in order to distribute the Participant’s vested Accrued Benefit. 
		

		
			For Plan Years beginning on or after January 1, 2006, a Participant whose employment status changes from that of a common law employee to that of a “leased employee” within the meaning of Code Section 414(n) shall not be considered to have a severance from employment for the purposes of this section and this Article of the Plan (unless the safe harbor plan requirements described in Code Section 414(n)(5) are met). 
		

		
			13.02       Late Retirement Benefits. If a Participant shall continue in active employment following his or her Normal Retirement Age, he or she shall continue to participate under the Plan and Trust. Except as provided in Section 13.06, upon actual retirement such Participant shall be entitled to a benefit that can be provided by the value of his or her Accrued Benefit. Late Retirement benefits shall be distributed in accordance with the further provisions of this Article. 
		

		
			13.03       Death Benefits. If a Participant or Former Participant shall die prior to the commencement of any benefits otherwise provided under this Article XIII, except as provided below, his or her Beneficiary shall be entitled to a lump sum death benefit equal to the amount credited to the Participant’s Account as of the date the Plan Administrator receives due proof of the Participant’s death. In lieu of receiving benefits in a lump sum, a Beneficiary may elect to receive benefits under any option described in Section 13.06; provided that effective January 1, 2011, in lieu of receiving a lump sum death benefit, and except with respect to amounts held in a Rollover Account as described below in this Section, the Beneficiary of a Participant may only elect to receive benefits under the installment payment option described in Section 13.06. 
		

		
			Notwithstanding anything in the Plan to the contrary, if a Participant or Former Participant is married on the date of his or her death, Plan pre-retirement death benefits will be paid to the Participant’s or Former Participant’s then spouse unless such spouse has consented to payment to another Beneficiary, as provided in Section 13.08. 
		

		
			Notwithstanding the first paragraph, if a Rollover Account is being maintained for a married Participant who dies prior to the commencement of Plan benefits and if any portion of the amount in the Rollover Account is attributable to amounts transferred directly (or indirectly from another transferee Plan) to this Plan from a defined benefit pension plan, from a money purchase pension plan or from a stock bonus or profit sharing plan which would otherwise provide for a life annuity form of payment to the Participant, the amount in the Rollover Account will be used to purchase a life annuity for the Participant’s spouse unless the Participant has requested that the Rollover Account be distributed in a different form or be paid to another Beneficiary. Any such request must be made during the election period, which shall begin on the first day of the Plan Year in which the Participant attains Age 35 and shall end on the date of the Participant’s death. If a Participant severs employment prior to the first day of the Plan Year in which Age 35 is attained, with respect to the value of the Rollover Account as of the date of separation, the election period shall begin on the date of separation. Any such request must be consented to by the Participant’s spouse. To be effective, the spousal consent must meet the requirements of Section 13.08. Any annuity provided with a portion of Participant’s Rollover Account in accordance with this paragraph shall be payable for the life of the Participant’s spouse and shall commence on the date the Participant would have attained Age 55 or, if the Participant was over Age 55 on the date of his or her death, such life annuity shall commence immediately. For Plan Years beginning January 1, 1998 and thereafter, at the request of the spouse, such Rollover Account may be used to purchase a life annuity or may be taken in another form allowed under the Plan at an earlier or later commencement date. 
		

		
			If a Participant shall die subsequent to the commencement of any benefit otherwise provided under this Article XIII, the death benefit, if any, shall be determined in accordance with the benefit option in effect for the Participant. 
		

		
			The Plan Administrator may require such proper proof of death and such evidence of the right of any person to receive payment of the value of the Accounts of a deceased Participant or a deceased Former Participant, as the Administrator deems necessary. The Administrator’s determination of death and of the right of any person to receive payment shall be conclusive and binding on all persons. 
		

		
			13.04       Death Benefits Under USERRA. Effective for deaths occurring on or after January 1, 2007, in the case of a Participant who dies while performing qualified military service as defined in Code Section 414(u), the survivors of the Participant are entitled to any additional benefits (other than benefit accruals relating to the period of qualified military service) provided under the Plan had the Participant resumed and then terminated employment on account of death. 
		

		
			13.05      Designation of Beneficiary. Each Participant shall designate his or her Beneficiary on a form provided by the Plan Administrator, and such designation may include primary and contingent beneficiaries; provided,  however, that if a Participant or Former Participant is married on the date of his or her death, the Participant’s then spouse shall be the Participant’s Beneficiary unless such spouse consented to the designation of another Beneficiary in accordance with 
		

		 

		

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		Section 13.08. If a Participant does not designate a Beneficiary and is not married at the date of his or her death, the estate of the Participant shall be deemed to be the designated Beneficiary. For Plan Years beginning on and after January 1, 2008, if a Participant completes or has completed a Beneficiary designation in which the Participant designates his or her spouse as the Beneficiary, and the Participant and the Participant’s spouse are legally divorced subsequent to the date of such designation, then the designation of such spouse as a Beneficiary hereunder will be deemed null and void unless the Participant, subsequent to the legal divorce, reaffirms the designation by completing a new Beneficiary designation form. 
		

		
			Effective for distributions made after June 9, 2009, a designated Beneficiary will also include a non-spouse designated Beneficiary. For this purpose, a non-spouse Designated Beneficiary means a Designated Beneficiary other than (i) a surviving spouse (as defined in section 13.08) or (ii) a spouse or former spouse who is an Alternate Payee under a Qualified Domestic Relations Order. 
		

		
			13.06       Distribution of Benefits. The Plan Administrator shall direct the Trustee to make payment of any benefits provided under this Article XIII upon the event giving rise to distribution of such benefit, or within 60 days thereafter. 
		

		
			All distributions required under the Plan shall be determined and made in accordance with Code Section 401(a)(9) and Regulations issued thereunder. 
		

		
			Unless the Participant elects otherwise, distribution of benefits will begin no later than the 60th day after the latest of the close of the Plan Year in which: 
		

		
			(i)            the Participant attains Age 65; 
		

		
			(ii)           occurs the 10th anniversary of the year in which the Participant commenced participation in the Plan; or, 
		

		
			(iii)          the Participant terminates service with the Employer. 
		

		
			Notwithstanding the foregoing, the failure of a Participant and spouse to consent to a distribution when a benefit is immediately distributable, within the meaning of Section 13.12 of the Plan, shall be deemed to be an election to defer commencement of payment of any benefit sufficient to satisfy this Section of the Plan. Except as provided in this Article, in no event will benefits begin to be distributed prior to the later of Age 62 or Normal Retirement Age without the consent of the Participant. 
		

		
			Except as provided below and in Sections 13.03, 13.07, 13.11 and 13.12, if benefits become payable to a Participant as a result of termination of employment or retirement, the Participant’s vested Accrued Benefit shall be distributed by the Trustee in such manner as the Participant shall direct, in accordance with one or more of the options listed below. Provided,  however, that a married Participant may not elect an option involving a life contingency without the consent of his or her spouse. To be effective, the spousal consent must meet the requirements of Section 13.08 
		

		
			 
		

		
			Notwithstanding the foregoing, if on the date of severance from employment of a married Participant prior to the attainment of his or her Qualified Early Retirement Age a Rollover Account as described in Section 13.03 is being maintained for the Participant, such Account will remain in force until the Former Participant attains Age 55 when, if the Former Participant is then married, the value of such Rollover Account will be used to purchase a Qualified Joint and Survivor Annuity for the benefit of the Former Participant and his or her then spouse. At any time prior to the date of purchase, the Former Participant may request that his or her Rollover Account be distributed under one or more of the options listed below; provided,  however, that if the Former Participant is married on the date of the request, the Former Participant’s then spouse must consent thereto. To be effective, the spousal consent must meet the requirements of Section 13.08. If a Former Participant who was married on the date of his or her severance from employment is not married at Age 55, at Age 55 the Former Participant’s Rollover Account (as described in Section 13.03) shall be distributed by the Trustee in such manner as the Former Participant shall direct, in accordance with one or more of the options listed below. If a Former Participant entitled to a deferred benefit pursuant to this paragraph dies prior to Age 55 and prior to commencement of Plan benefits, his or her Beneficiary shall be entitled to a death benefit pursuant to Section 13.03. 
		

		
			Prior to January 1, 2011, if a Qualified Joint and Survivor Annuity is not required under the above rules or pursuant to Section 13.07, a Participant’s Accrued Benefit shall be distributed by the Trustee in such manner as the Participant shall elect, in accordance with one or more of the following methods of distribution, which may be paid in cash or in kind, or a combination of them: 
		

		
			(i)            One lump sum payment. 
		

		
			(ii)           An annuity for the life of the Participant. 
		

		
			(iii)          An annuity for the joint lives of the Participant and his or her spouse with 50%, 66 2/3%, 75% or 100% (whichever is specified when this option is elected) of such amount payable as an annuity for life to the survivor. No further benefits are payable after the death of both the Participant and his or her spouse. 
		

		
			(iv)           An annuity for the life of the Participant with installment payments for a period certain not longer than the life expectancy of the Participant. 
		

		

		

		 

		

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		(v)            Installment payments for a period certain not longer than the life expectancy of the Participant and his or her spouse. 
		

		
			On and after January 1, 2011, the portion of the Participant’s Accrued Benefit that is attributable to a Rollover Account as described in Section 13.03 shall be distributed by the Trustee in such manner as the Participant shall elect, in accordance with one or more of the above-described methods of distribution, which may be paid in cash or in kind, or a combination of them; provided that an in-kind distribution shall only be available with respect to an annuity contract that is purchased by the Trustee at the time of distribution or shares of common stock of The Hanover Insurance Group that are held in the Participant’s Account at the time of distribution as represented by the Participant’s investment in The Employer Stock Fund (defined in Section 16.02 of the Plan). 
		

		
			On and after January 1, 2011, the portion of the Participant’s Accrued Benefit that is not attributable to a Rollover Account as described in Section 13.03 shall be distributed by the Trustee in such manner as the Participant shall elect, in accordance with one or more of the following methods of distribution, which may be paid in cash or in kind, or a combination of them; provided that an in-kind distribution shall only be available with respect to shares of common stock of The Hanover Insurance Group. Inc. that are held in the Participant’s Account at the time of distribution as represented by the Participant’s investment in The Employer Stock Fund (defined in Section 16.02 of the Plan): 
		

		
			(i)            One lump sum payment. 
		

		
			(ii)           Installment payments for a period certain not longer than the life expectancy of the Participant and his or her spouse. 
		

		
			All optional forms of benefits shall be actuarially equivalent. 
		

		
			Notwithstanding anything in the Plan to the contrary, any annuity policy which is distributed by the Trustee shall provide by its terms that the same shall not be sold, transferred, assigned, discounted, pledged or encumbered in any way except to or through the insurer, and then only in accordance with a right conferred under the terms of the annuity policy. 
		

		
			Notwithstanding anything in the Plan to the contrary, the entire interest of a Participant must be distributed or begin to be distributed no later than the Participant’s Required Beginning Date. 
		

		
			The Required Beginning Date of a Participant is the first day of April of the calendar year following the calendar year in which the Participant attains age 70 1/2;  provided,  however, that a Participant, who is not a Five Percent Owner and who does not retire by the end of the calendar year in which such Participant reaches age 70 1/2, may elect to defer their Required Beginning Date to the first day of April of the calendar year following the calendar year in which the Participant retires. If, after the date of such election, a Participant becomes a Five Percent Owner, the Required Beginning Date is the first day of April following the later of: (i) the calendar year in which the Participant attains age 70 1/2; or (ii) the earlier of the calendar year with or within which ends the Plan Year in which the Participant becomes a Five Percent Owner, or the calendar year in which the Participant retires. 
		

		
			13.07       Automatic Joint and Survivor Annuity. Notwithstanding anything in Section 13.06 to the contrary, if a Rollover Account as described in Section 13.03 is being maintained for a married Participant and if Plan benefits become payable to such Participant on or after the Participant’s Qualified Early Retirement Age, such Rollover Account will be used to purchase a Qualified Joint and Survivor Annuity unless the Participant has elected otherwise. To be effective, any election out of a Qualified Joint and Survivor Annuity must be consented to by the Participant’s spouse at the time Plan benefits become payable. Any election (by a Participant on whose behalf a Rollover Account as described in Section 13.03 is maintained) out of a Qualified Joint and Survivor Annuity must be in writing and may be made during the election period, which shall be the 90-day period (180-day period for Plan Years beginning January 1, 2007 and thereafter) ending on the annuity starting date. 
		

		

		

		 

		

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			13.08       Participant Elections and Spousal Consents. Married Participants may choose a Beneficiary other than their spouse or, in the case of a Rollover Account described in Section 13.03, may choose a form of retirement benefit other than a Qualified Joint and Survivor Annuity. Any Beneficiary designation shall be in accordance with the requirements of Section 13.05. Any election (by a Participant on whose behalf a Rollover Account as described in Section 13.03 is maintained) out of a Qualified Joint and Survivor Annuity must be in writing and may be made during the election period, which shall be the 90-day period (180-day period for Plan Years beginning January 1, 2007 and thereafter) ending on the annuity starting date. To be effective, any designation of a Beneficiary who is not the spouse of the Participant on the date of the Participant’s death or any such election out of the Qualified Joint and Survivor Annuity must be consented to by Participant’s spouse. For purposes of this Section the term “spouse” means the lawful spouse of the Participant on the date of the Participant’s death or on the date Plan benefits commence, whichever is applicable; provided that a former spouse will be treated in the same manner as a spouse to the extent provided under a Qualified Domestic Relations Order as described in Code Section 414(p). 
		

		
			To be effective, spousal consent must be in writing on a form furnished by or satisfactory to the Plan Administrator and witnessed by a Plan representative or notary public. Provided,  however, spousal consent shall not be required under such circumstances as may be prescribed by the Plan Administrator in accordance with Rules and Regulations promulgated by the Secretary and the Treasury. Any spousal consent will be valid only with respect to the spouse who signs the consent. Additionally, a revocation of an election out of a Qualified Joint and Survivor Annuity may be made by a Participant without the consent of the spouse at any time before the commencement of benefits. The number of revocations shall not be limited. 
		

		
			13.09       Distribution to a Minor Participant or Beneficiary. In the event a distribution is to be made to a minor, then the Plan Administrator may, in the Administrator’s sole discretion, direct that such distribution be paid to the legal guardian of the minor, or if none, to a parent of such minor or a responsible adult with whom the minor maintains his or her residence, or to the custodian for such minor under the Uniform Gift to Minors Act, if such is permitted by the laws of the state in which said minor resides. Such a payment to the legal guardian or parent of a minor or to such a custodian shall fully discharge the Trustee, Employer, and Plan from further liability on account thereof. 
		

		
			 
		

		
			13.10       Location of Participant or Beneficiary Unknown. In the event that all, or any portion, of the distribution payable to a Participant or his or her Beneficiary hereunder shall, at the expiration of five years after it shall become payable, remain unpaid solely by reason of the inability of the Plan Administrator, after sending a registered letter, return receipt requested, to the payee’s last known address, and after reasonable effort, to ascertain the whereabouts of such Participant or his or her Beneficiary, the amount so distributable shall be forfeited and allocated in accordance with the terms of this Plan. In the event a Participant or Beneficiary is located subsequent to his or her benefit being forfeited, such benefit shall be restored. 
		

		
			13.11       Small Balances; Forfeitures; Restoration of Benefits Upon Reemployment. If a Participant terminates from employment and the present value of the Participant’s vested Accrued Benefit does not exceed (or at the time of any prior distribution did not exceed) $3,500 ($5,000 for periods between January 1, 1998 and March 27, 2005), except as provided in Section 13.14, for distributions made prior to March 28, 2005, the Participant will receive a lump sum distribution of the present value of the entire vested portion of such Accrued Benefit and the non-vested portion will be forfeited and applied to reduce Employer Match Contributions. Provided,  however, if a Rollover Account described in Section 13.03 is being maintained for a Participant, no such distribution may be made to the Participant after Age 55 unless the Participant (and the spouse of the Participant) consents in writing to such distribution. For purposes of this paragraph, for terminations occurring at any time (including terminations occurring on or after March 28, 2005), if the value of the Participant’s vested Accrued Benefit is zero, the Participant shall be deemed to have received a distribution of such vested Accrued Benefit. 
		

		
			If a Participant terminates from employment and the present value of the Participant’s vested Accrued Benefit exceeds $3,500 ($5,000 for periods between January 1, 1998 and March 27, 2005), or any dollar amount if the distribution would otherwise be made on or after March 28, 2005, the Participant’s vested Accrued Benefit shall be deferred to the earliest of the Participant’s death, Total and Permanent Disability or attainment of Normal Retirement Age, at which time such vested benefit shall be payable in accordance with Sections 13.06 and 13.13. Notwithstanding the foregoing, such a Participant may elect to have payments commence at any time after termination in accordance with Section 13.06. Partial distributions of vested benefits will not be permitted except in accordance with Section 13.06. The non-vested portion of the Participant’s Accrued Benefit shall be forfeited when the Participant incurs five consecutive One Year Breaks in Service or, if earlier, when the Participant or his or her spouse (or surviving spouse) receives a distribution of his or her vested Accrued Benefit. 
		

		
			Notwithstanding the above, the $5,000 amount shall apply to any Participant with a vested Accrued Benefit on or after January 1, 1998 and before March 27, 2005; including those Participants whose vested Accrued Benefit exceeded the prior cash-out amount under the Plan. Further, in determining whether the vested Accrued Benefit exceeds $5,000 for distributions made in accordance with this Section on or after October 17, 2000, the look-back rule shall not apply, except in the case of periodic distributions already in effect. 
		

		
			 
		

		

		

		 

		

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			Except as provided below, the non-vested portion of the Accrued Benefit of any terminated Participant will be used to reduce Employer Match Contributions for the Plan Year in which the forfeiture occurs and for subsequent Plan Years, if necessary. A Participant who severs employment and who subsequently resumes employment with the Employer will again become a Participant on the entry date determined in accordance with Plan Section 3.01. 
		

		
			If a Former Participant is subsequently reemployed, the following rules shall also be applicable: 
		

		
			(i)            If any Former Participant shall be reemployed by the Employer before incurring five consecutive One Year Breaks in Service, and such Former Participant had received a distribution of his or her vested Accrued Benefit prior to his or her reemployment, his or her forfeited Account balance shall be reinstated if he or she repays the full amount attributable to Employer Contributions which was distributed to him or her, not including, at the Participant’s option, amounts attributable to any Salary Reduction Contributions. Such repayment must be made by the Former Participant before the date on which the individual incurs five consecutive One Year Breaks in Service following the date of distribution. A Participant who was deemed to have received a distribution of his or her vested amount shall be deemed to have repaid such amount as of the first date on which he or she again becomes a Participant. In the event the Former Participant does repay the full amount distributed to him or her, the forfeited portion of the Participant’s Account must be restored in full, unadjusted by any gains or losses occurring subsequent to the date of distribution. 
		

		
			(ii)           Restorations of forfeitures will be made as of the date that the Plan Administrator is notified that the Trustee has received the required repayment. Any forfeiture amount that must be restored to a Participant’s Account will be taken from any forfeitures that have not yet been applied and, if the amount of forfeitures available for this purpose is insufficient, the Employer will make a timely supplemental contribution of an amount sufficient to enable the Trustee to restore the forfeiture amount to the Participant’s Account. 
		

		
			(iii)           If a Former Participant resumes service after incurring five consecutive One Year Breaks in Service, forfeited amounts will not be restored under any circumstances. 
		

		
			If a Former Participant resumes service before incurring five consecutive One Year Breaks in Service, both the pre-break and post-break service will count in vesting both any restored pre-break and post-break employer-derived Account balance. 
		

		
			 
		

		
			13.12       Restrictions on Immediate Distributions 
		

		
			(a)           If the value of a Participant’s vested Accrued Benefit derived from Employer and Employee contributions exceeds (or at the time of any prior distribution exceeded) $3,500 ($5,000 for Plan Years beginning January 1, 1998 and thereafter) and the Accrued Benefit is immediately distributable, the Participant and the Participant’s spouse (or where either the Participant or the spouse has died, the survivor) must consent to any distribution of such Accrued Benefit. Notwithstanding the above, in determining whether such consent is necessary, the $5,000 amount shall apply to any Participant with an Accrued Benefit on or after January 1, 1998 and before March 28, 2005, including those Participants whose Accrued Benefit exceeded the prior cash-out amount under the Plan. Further, in determining whether such consent is necessary for distributions on or after October 17, 2000, the look-back rule shall not apply, except in the case of periodic distributions already in effect. 
		

		
			Except as provided below, the consent of the Participant and the Participant’s spouse shall be obtained in writing within the 90-day period (180-day period for Plan Years beginning January 1, 2007 and thereafter) ending on the annuity starting date. The annuity starting date is the first day of the first period for which an amount is paid as an annuity or any other form. The Plan Administrator shall notify the Participant and/or the Participant’s spouse of the right to defer any distribution until the Participant’s Accrued Benefit is no longer immediately distributable and, effective for Plan Years beginning after December 31, 2006, the consequences of failing to defer receipt of the distribution. Such notification shall include a general description of the material features, and an explanation of the relative values of, the optional forms of benefit available under the Plan in a manner that would satisfy the notice requirements of Code Section 417(a)(3), if applicable, and shall be provided no less than 30 days and no more than 90 days (180 days for Plan Years beginning January 1, 2007 and thereafter) prior to the annuity starting date. 
		

		
			However, distribution may commence less than 30 days after the notice described in the preceding sentence is given, provided the distribution is not one to which Code Section 417 applies, the Participant is clearly informed of his or her right to take 30 days after receiving the notice to decide whether or not to elect a distribution (and, if applicable, a particular distribution option), and the Participant, after receiving the notice, affirmatively elects to receive the distribution prior to the expiration of the 30-day minimum period. 
		

		
			 
		

		

		

		 

		

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			For Plan Years beginning January 1, 1998, and thereafter, if a distribution is one to which Code Sections 411(a)(11)(A) and 417 applies, a Participant may commence receiving a distribution in a form other than a Qualified Joint and Survivor Annuity less than 30 days after receipt of the written explanation described in the preceding paragraph provided: (1) the Participant has been provided with information that clearly indicates that the Participant has at least 30 days to consider whether to waive the Qualified Joint and Survivor Annuity and elect (with spousal consent) a form of distribution other than a Qualified Joint and Survivor Annuity; (2) the Participant is permitted to revoke any affirmative distribution election at least until the Distribution Commencement Date or, if later, at any time prior to the expiration of the 7-day period that begins the day after the explanation of the Qualified Joint and Survivor Annuity is provided to the Participant; and (3) the Distribution Commencement Date is after the date the written explanation was provided to the Participant. For distributions on or after December 31, 1996, the Distribution Commencement Date may be a date prior to the date the written explanation is provided to the Participant if the distribution does not commence until at least 30 days after such written explanation is provided, subject to the waiver of the 30-day period. For the purposes of this paragraph, the Distribution Commencement Date is the date a Participant commences distributions from the Plan. If a Participant commences distribution with respect to a portion of his/her Account Balance, a separate Distribution Commencement Date applies to any subsequent distribution. If distribution is made in the form of an annuity, the Distribution Commencement Date is the first day of the first period for which annuity payments are made. 
		

		
			Notwithstanding the foregoing, only the Participant need consent to the commencement of a distribution in the form of a Qualified Joint and Survivor Annuity while the Accrued Benefit is immediately distributable. Furthermore, if payment in the form of a Qualified Joint and Survivor Annuity is not required with respect to the Participant, only the Participant need consent to the distribution of an Accrued Benefit that is immediately distributable. The consent of the Participant or the Participant’s spouse shall not be required to the extent that a distribution is required to satisfy Code Section 401(a)(9) or Code Section 415. In addition, upon termination of this Plan if the Plan does not offer an annuity option (purchased from a commercial provider) and if the Employer or any entity within the same controlled group as the Employer does not maintain another defined contribution plan (other than an employee stock ownership plan as defined in Code Section 4975(e)(7)), the Participant’s Accrued Benefit may, without the Participant’s consent, be distributed to the Participant. However, if any entity within the same controlled group as the Employer maintains another defined contribution plan (other than an employee stock ownership plan as defined in Code Section 4975(e)(7)) then the Participant’s Accrued Benefit will be transferred, without the Participant’s consent, to the other plan if the Participant does not consent to an immediate distribution. 
		

		
			 
		

		
			An Accrued Benefit is immediately distributable if any part of the Accrued Benefit could be distributed to the Participant (or surviving spouse) before the Participant attains (or would have attained if not deceased) the later of Normal Retirement Age or age 62. 
		

		
			13.13       Rollovers to Other Qualified Plans. 
		

		
			(a)           Notwithstanding any provision of the Plan to the contrary that would otherwise limit a distributee’s election under this Article, a distributee may elect, at the time and in the manner prescribed by the Plan Administrator, to have any portion of an eligible rollover distribution paid directly to an eligible retirement plan specified by the distributee in a direct rollover. 
		

		

		

		 

		

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			(b)          Definitions. 
		

		
			(i)             Eligible rollover distribution: An eligible rollover distribution is any distribution of all or any portion of the balance to the credit of the distributee, except that an eligible rollover distribution does not include: any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee’s designated Beneficiary, or for a specified period of ten years or more; any distribution to the extent such distribution is required under Code Section 401(a)(9); any hardship distribution described in Code Section 401(k)(2)(B)(i)(iv) received after December 31, 1998; the portion of any distribution that is not includible in gross income (determined without regard to the exclusion for net unrealized appreciation with respect to employer securities); and any other distribution(s) that is reasonably expected to total less than $200 during a year. For Plan Years beginning on and after January 1, 2008, a portion of a distribution shall not fail to be an Eligible Rollover Distribution merely because the portion consists of after-tax employee contributions which are not includible in gross income. However, effective January 1, 2007, such portion may be transferred only to an individual retirement account or individual retirement annuity described in Code section 408(a) or Code Section 408(b), or to a qualified plan described in Code Section 401(a) or Code Section 403(a), or to an annuity contract described in Code Section 403(b), which plan or contract agrees to separately account for amounts so transferred, including separate accounting for the portion of such distribution which is includible in gross income and the portion of such distribution which is not so includible. Effective January 1, 2008, such portion may also be transferred to a Roth IRA, provided that for amounts transferred in 2008 or in 2009, the same income and tax filing restrictions that apply to a rollover from a traditional IRA to a Roth IRA are complied with by the distributee. 
		

		
			 
		

		
			(ii)            Eligible retirement plan: An eligible retirement plan is an individual retirement account described in Code Section 408(a), an individual retirement annuity described in Code Section 408(b), an annuity plan described in Code Section 403(a), or a qualified Plan described in Code Section 401(a), that accepts the distributee’s eligible rollover distribution. Effective for Plan Years beginning on and after January 1, 2006, eligible Retirement Plan also means an annuity contract described in Code Section 403(b) and an eligible plan under Code Section 457(b), which is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or political subdivision of a state and which agrees to separately account for amounts transferred into such plan from this Plan. For Eligible Rollover Distributions made after December 31, 2007, an Eligible Retirement Plan shall also include a Roth individual retirement account as described in Section 408A of the Code, provided that for Eligible Rollover Distributions made in 2008 or in 2009, the same income and tax filing status restrictions that apply to a rollover from a traditional IRA into a Roth IRA, will also apply to rollovers to a Roth IRA. 
		

		
			(iii)         Distributee: A distributee includes an Employee or former Employee. In addition, the Employee’s or former Employee’s surviving spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in Code Section 414(p), are distributees with regard to the interest of the spouse or former spouse. 
		

		
			(iv)          Direct rollover: A direct rollover is a payment by the Plan to the eligible retirement plan specified by the distributee. 
		

		
			(c)           For distributions after June 9, 2009, a non-spouse Beneficiary who is a “designated beneficiary” under Code Section 401(a)(9)(E) and the regulations thereunder, by a direct trustee-to-trustee transfer (“direct rollover”), may roll over all or any portion of his or her distribution to an individual retirement account the Beneficiary establishes for purposes of receiving the distribution. In order to be able to roll over the distribution, the distribution otherwise must satisfy the definition of an eligible rollover distribution. 
		

		
			Although a non-spouse Beneficiary may roll over directly a distribution as provided in above, any distribution made prior to January 1, 2010 is not subject to the direct rollover requirements of Code 401(a)(31) (including Code Section 401(a)(31)(B), the notice requirements of Code Section 402(f) or the mandatory withholding requirements of Code Section 3405(c)). If a non-spouse Beneficiary receives a distribution from the Plan, the distribution is not eligible for a “60-day” rollover. 
		

		
			 
		

		
			If the Participant’s named Beneficiary is a trust, the Plan may make a direct rollover to an individual retirement account on behalf of the trust, provided the trust satisfies the requirements to be a “designated beneficiary” within the meaning of Code Section 401(a)(9)(E). 
		

		

		

		 

		

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			A non-spouse Beneficiary may not roll over an amount which is a required minimum distribution, as determined under applicable Treasury Regulations and other Internal Revenue Service guidance. If the Participant dies before his or her required beginning date and the non-spouse Beneficiary rolls over to an IRA the maximum amount eligible for rollover, the Beneficiary may elect to use either the 5-year rule or the life expectancy rule, pursuant to Treasury Regulation Section 1.401(a)(9)-3, A-4(c), in determining the required minimum distributions from the IRA that receives the non-spouse Beneficiary’s distribution. 
		

		
			13.14       Payment under Qualified Domestic Relations Orders. Notwithstanding any provisions of the Plan to the contrary, if there is entered any Qualified Domestic Relations Order that affects the payment of benefits hereunder, such benefits shall be paid in accordance with the applicable requirements of such Order, provided that such Order (i) does not require the Plan to provide any type or form of benefits, or any option, that is not otherwise provided hereunder, (ii) does not require the Plan to provide increased benefits, and (iii) does not require the payment of benefits to an alternate payee which are required to be paid to another alternate payee under another order previously determined to be a Qualified Domestic Relations Order. 
		

		
			To the extent required or permitted by any such Order, at any time on or after the date the Plan Administrator has determined that the Order is a Qualified Domestic Relations Order, the alternate payee shall have the right to request the Plan Administrator to commence distribution of benefits under the Plan regardless of whether the Participant is otherwise entitled to a distribution at such time under the Plan. Except as specifically provided in a Qualified Domestic Relations Order, amounts distributed under this section shall be taken pro rata from the investment options in which each of the Participant’s Accounts is invested. The Plan Administrator shall establish reasonable procedures to determine whether an order or other decree is a Qualified Domestic Relations Order, and to administer distributions under such orders. 
		

		
			13.15       Notwithstanding anything in the Plan to the contrary, effective January 1, 2002, for purposes of computing the value of involuntary distributions of vested Accrued Benefits of $5,000 or less, the value of a Participant’s nonforfeitable Account balances shall be determined without regard to that portion of the Account balances that are attributable to Rollover Contributions (and earnings allocable thereto) within the meaning of Code Sections 402(c)(4), 403(a)(4), 403(b)(8), 408(d)(3) and 457(e)(16). If the value of the Participant’s nonforfeitable Account balances as so determined is $5,000 or less, for distributions made prior to March 28, 2005, the Plan shall distribute the Participant’s entire vested Account balances as soon as administratively feasible. 
		

		
			 
		

		
			13.16       USERRA. For years beginning after December 31, 2008, the following rules shall apply: 
		

		
			(a)           Severance from Employment. An individual shall be treated as having been severed from employment for purposes of Code Section 401(k)(2)(B)(i)(I) during any period the individual is performing service in the uniformed services described in Code Section 3401(h)(2)(A). If an individual performing such service in the uniformed services elects to receive a distribution by reason of severance from employment, the individual may not make a Salary Reduction Contribution or other Employee contribution during the 6-month period beginning on the date of the distribution. 
		

		
			(b)           Qualified Reservist Distribution under USERRA. A Participant who is ordered or called to active duty may take a Qualified Reservist Distribution if the following are satisfied: 
		

		
			(1)the distribution consists solely of elective deferrals (Salary Reduction Contributions); 
		

		
			(2)the Participant was ordered or called to active duty for a period in excess of one hundred and seventy nine (179) days or for an indefinite period; and 
		

		
			(3)the distribution from the Plan is made during the period which begins on the date of such order or call and ends at the close of the active duty period. 
		

		
			The ten percent (10%) early withdrawal penalty tax will not apply to a qualified reservist distribution, which meets the requirements stated above. 
		

		
			ARTICLE XIV
		

		
			PLAN FIDUCIARY RESPONSIBILITIES
		

		
			14.01       Plan Fiduciaries. The Plan Fiduciaries shall be: 
		

		
			(i)          the Trustee(s) of the Plan; 
		

		
			(ii)         the Plan Administrator; and 
		

		
			(iii)         such other person or persons as may be designated by the Plan Administrator in accordance with the provisions of this Article XIV. 
		

		
			 
		

		

		

		 

		

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		14.02       General Fiduciary Duties. Each Plan Fiduciary shall discharge his or her duties solely in the interest of the Participants and
		

		
			their Beneficiaries and act: 
		

		
			(i)            for the exclusive purpose of providing benefits to Participants and their Beneficiaries and defraying reasonable expenses of administering the Plan; 
		

		
			(ii)           with the care, skill, prudence and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims; 
		

		
			(iii)          by diversifying the investments of the Plan so as to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so, if the Fiduciary has the responsibility to invest plan assets; and 
		

		
			(iv)           in accordance with the documents and instruments governing the Plan insofar as such documents and instruments are consistent with the provisions of current laws and regulations. 
		

		
			Each Plan Fiduciary shall perform the duties specifically assigned to him or her. No Plan Fiduciary shall have any responsibility for the performance or non-performance of any duties not specifically allocated to him or her. 
		

		
			14.03       Duties of the Trustee(s). The specific responsibilities and duties of the Trustee(s) are set forth in the Trust Indenture between the Employer and the Trustee(s). In general the Trustee(s) shall: 
		

		
			(i)            invest Plan assets, subject to directions from the Plan Administrator or from any duly appointed investment manager; 
		

		
			(ii)           maintain adequate records of receipts, disbursements, and other transactions involving the Plan; and 
		

		
			(iii)           prepare such reports, statements, tax returns and other forms as may be required under the Trust Indenture or applicable laws and regulations.
		

		
			14.04       Powers and Duties of the Plan Administrator. The Plan Administrator is the Benefits Committee. The Plan Administrator shall have the power, discretionary authority, and duty to interpret the provisions of the Plan and to make all decisions and take all actions that shall be necessary or proper in order to carry out the provisions of the Plan. Without limiting the generality of the foregoing, the Plan Administrator shall: 
		

		
			(i)              monitor compliance with the provisions of ERISA and other applicable laws with respect to the Plan; 
		

		
			(ii)            establish an investment policy and funding method consistent with objectives of the Plan and with the requirements of applicable laws and regulations; 
		

		
			 
		

		
			(iii)           invest Plan assets except to the extent that the Plan Administrator has delegated such investment duties to an investment manager; 
		

		
			(iv)          evaluate from time to time investment policy and the performance of any investment manager or investment advisor appointed by it; 
		

		
			(v)           interpret and construe the Plan in order to resolve any ambiguities therein; 
		

		
			(vi)           determine all questions concerning the eligibility of any person to participate in the Plan, the right to and the amount of any benefit payable under the Plan to or on behalf of an individual and the date on which any individual ceases to be a Participant, with any such determination to be conclusively binding and final, to the extent permitted by applicable law, upon all persons interested or claiming an interest in the Plan; 
		

		
			(vii)        establish guidelines as required for the orderly and uniform administration of the Plan; 
		

		
			(viii)        exercise overall control of the operation and administration of the Plan in matters not allocated to some other Fiduciary by the terms of this Plan; 
		

		
			(ix)          administer the Plan on a day-to-day basis in accordance with the provisions of this Plan and all other pertinent documents; 
		

		
			(x)            retain and maintain Plan records, including Participant census data, participation dates, compensation records, and such other records necessary or desirable for proper Plan administration; 
		

		
			(xi)          prepare and arrange for delivery to Participants of such summaries, descriptions, announcements and reports as are required to be given to Participants under applicable laws and regulations; 
		

		
			(xii)           file with the U.S. Department of Labor, the Internal Revenue Service and other regulatory agencies on a timely basis all required reports, forms and other documents; 
		

		
			(xiii)         prepare and furnish to the Trustee(s) sufficient records and data to enable the Trustee(s) to properly perform its obligations under the Trust Indenture; and 
		

		

		

		 

		

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		(xiv)          to take appropriate actions required to correct any errors made in determining the eligibility of any Employee for benefits under the Plan or the amount of benefits payable under the Plan and in correcting any error made in computing the benefits of any Participant or Beneficiary, the Plan Administrator may make equitable adjustments (an increase or decrease) in the amount of any future benefits payable under the Plan, including the recovery of any overpayment of benefits paid from the Plan as provided in Treasury Regulation Section 1.401(a)-13(c)(2)(iii). 
		

		
			 
		

		
			The Plan Administrator may appoint or employ such advisers or assistants as the Plan Administrator deems necessary and may delegate to any one or more of its members any responsibility it may have under the Plan or designate any other person or persons to carry out any responsibility it may have under the Plan. 
		

		
			Notwithstanding any provisions elsewhere to the contrary, the Plan Administrator shall have total discretion to fulfill the above responsibilities as the Plan Administrator sees fit on a uniform and consistent basis and as the Plan Administrator believes a prudent person acting in a like capacity and familiar with such matters would do. 
		

		
			14.05       Designation of Fiduciaries. The Plan Administrator shall have the authority to appoint and remove Trustee(s) in accordance with the Trust Indenture. The Plan Administrator may appoint and remove an investment manager and delegate to said investment manager power to manage, acquire or dispose of any assets of the Plan. 
		

		
			While there is an investment manager, the Plan Administrator shall have no obligation under this Plan with regard to the performance or non-performance of the duties delegated to the investment manager. 
		

		
			The Plan Administrator shall appoint all other Fiduciaries of this Plan. In making its appointment or delegation of authority, the Plan Administrator may designate all of the responsibilities to one person or it may allocate the responsibilities, on a continuing basis or on an ad hoc basis, to one or more individuals either jointly or severally. No individual named a Fiduciary shall have any responsibility for the performance or non-performance of any responsibilities or duties not allocated to him or her. 
		

		
			The appointing authority of a Fiduciary shall periodically, but not less frequently than annually, review the performance of each fiduciary appointed in order to carry out the general fiduciary duties specified in Section 14.02 and, where appropriate, take or recommend remedial action. 
		

		
			14.06       Delegation of Duties by a Fiduciary. Except as provided in this Plan or in the appointment as a Fiduciary, no Plan Fiduciary may delegate his or her fiduciary responsibilities. If authorized by the appointing authority, a Fiduciary may appoint such agents as may be deemed necessary and delegate to such agents any non-fiduciary powers or duties, whether ministerial or discretionary. No Fiduciary or agent of a Fiduciary who is a full-time employee of the Employer will receive any compensation from the Plan for his or her services, but the Employer or the Plan shall pay all expenses that such employee reasonably incurs in the discharge of his or her duties. 
		

		
			 
		

		
			ARTICLE XV
		

		
			BENEFITS COMMITTEE
		

		
			15.01       Appointment of Benefits Committee. The Benefits Committee shall consist of three or more members appointed from time to time by the president of the Employer (the “President”), who shall also designate one of the members as chairman. Each member of the Benefits Committee and its chairman shall serve at the pleasure of the President. 
		

		
			15.02       Benefits Committee to Act by Majority Vote, etc. The Benefits Committee shall act by majority vote of all members. All actions, determinations, interpretations and decisions of the Benefits Committee with respect to any matter within their jurisdiction will be conclusive and binding on all persons. Any person may rely conclusively upon any action if certified by the Benefits Committee. 
		

		
			Notwithstanding the above, a member of the Benefits Committee who is also a Participant shall not vote or act upon any matter relating solely or primarily to him or herself. 
		

		
			15.03      Records and Reports of the Benefits Committee. The Benefits Committee shall keep a record of all of its proceedings and acts, and shall keep such books of account, records and other data as may be necessary for the proper administration of the Plan and file or deliver to Participants and their Beneficiaries whatever reports are required by any regulatory authority. 
		

		
			15.04       Costs and Expenses of Administration. Notwithstanding any provisions of the Plan to the contrary (but subject to the provisions of Section 12.01), all clerical, legal and other expenses of the Plan and the Trust, including Trustee’s fees, shall be paid by the Plan, except to the extent the Employer elects to pay such amounts; provided,  however, that if the Employer pays such amounts it shall be reimbursed by the Trust for such amounts unless the Employers elects not to be so reimbursed. 
		

		
			15.05       Indemnification of the Plan Administrator and Assistants. The Employer shall indemnify and defend to the extent permitted under the By-Laws of the Employer any Employee or former Employee (i) who serves or has served as a member of the Benefits Committee, (ii) who has been appointed to assist the Benefits Committee in administering the Plan, or (iii) to whom 
		

		 

		

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		the Benefits Committee has delegated any of its duties or responsibilities against any liabilities, damages, costs and expenses (including attorneys’ fees and amounts paid in settlement of any claims approved by the Employer) occasioned by any act or omission to act in connection with the Plan, if such act or omission to act is in good faith and without gross negligence; provided that such Employee or former Employee is not otherwise indemnified or saved harmless under any liability insurance or other indemnification arrangement. 
		

		
			 
		

		
			ARTICLE XVI
		

		
			INVESTMENT OF THE TRUST FUND
		

		
			16.01       In General. Subject to the direction of the Plan Administrator or any duly appointed investment manager in accordance with Section 14.05, the Trustee shall receive all contributions to the Trust and shall hold, invest and control the whole or any part of the assets in accordance with the provisions of the annexed Trust Indenture. 
		

		
			16.02      Investment of the Trust Fund. In order to provide retirement and other benefits for Plan Participants and their Beneficiaries, the Trustee shall invest Plan assets in one or more permissible investments specified in the Trust Indenture (“Permissible Investments”) and in such collective investment trusts or group trusts that may be established for the primary objective of investing in securities issued by The Hanover Insurance Group, Inc., which investments shall be considered as investments in qualifying employer securities as defined in Section 407(d) of the Employee Retirement Income Security Act of 1974, as amended. Except as otherwise provided in this Section, such Permissible Investments shall include The Hanover Insurance Group Company Stock Fund, a group trust established for the purposes of investing in the common stock of The Hanover Insurance Group. Inc. (“The Employer Stock Fund”). Notwithstanding anything else in the Plan to the contrary, after the close of trading on November 2, 2009, the Trustee shall not invest any Plan assets to acquire an interest in The Employer Stock Fund for or on behalf of a Participant. Notwithstanding anything else in the Plan to the contrary, effective after the close of trading on December 30, 2011, the Employer Stock Fund shall automatically stop being offered as a Permissible Investment under the Plan and shall he liquidated. 
		

		
			All collective investment trusts and group trusts shall also conform to the terms of the Plan. 
		

		
			This Plan is intended to comply with the requirements of Section 404(c) of ERISA. Each Participant is responsible and has sole discretion to give directions to the Trustee in such form as the Trustee may require concerning the investment of his or her Accrued Benefit in one or more of the Permissible Investments, which directions must be followed by the Trustee, subject to the restriction contained above restricting investments in The Employer Stock Fund. The designation by a Participant of the allocation of his Accrued Benefit among the Permissible Investments may be made from time to time, with such frequency and in accordance with such procedures as are established and set forth in the Trust Indenture and applied in a uniform nondiscriminatory manner provided,  however, that notwithstanding the foregoing, effective at the close of trading on November 2, 2009, a Participant shall not designate an increase to the allocation of his Accrued Benefit in The Employer Stock Fund as that allocation existed at the close of trading on November 2, 2009. Any such procedure shall he communicated to the Participants and designed with the intention of permitting the Participants to exercise control over the assets in their respective accounts within the meaning of Section 404(c) of the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder. 
		

		
			 
		

		
			Notwithstanding anything else in the Plan to the contrary, if and to the extent a Participant has assets invested in The Employer Stock Fund as of the close of trading on November 2, 2009, such Participant shall be provided an opportunity before the close of trading on December 30, 2011 to give directions to the Trustee to transfer such assets out of the Employer Stock Fund and into another Permissible Investment. Notwithstanding anything in the Plan to the contrary, if and to the extent that (i) a Participant fails to designate an allocation of his Accrued Benefit, in whole or in part, (ii) a Participant’s attempted allocation into The Employer Stock Fund is disregarded under this Section, or (iii) a Participant has any assets invested in The Employer Stock Fund as of the close of business on December 30, 2011, the Trustee shall allocate and invest such assets in the default investment fund which has been selected by the Plan Administrator; provided that for Plan Years beginning on or after January 1, 2009, the provisions of Section 5.05(f) of the Plan shall apply with respect to a default investment fund selected by the Plan Administrator. Otherwise, the Trustee shall allocate and invest the assets of the Trust in accordance with the Participant’s selections as provided in this Section, subject to the restriction on investments in The Employer Stock Fund. All voting rights with respect to a Participant’s investment in The Employer Stock Fund shall be the responsibility of that Participant, and the Trustee shall receive direction from the Participant for such voting rights. 
		

		

		

		 

		

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			Neither the Plan Administrator, the Trustee, the Employer nor any other person shall be under any duty to question any investment, voting or other direction of the Participant or make any suggestions to the Participant in connection therewith, and the Trustee shall comply as promptly as practicable with directions given by the Participant hereunder, except, notwithstanding anything in the Plan to the contrary, and effective at the close of trading on November 2, 2009, directions to invest in The Employer Stock Fund. All such directions may be of continuing nature or otherwise and may be revoked by the Participant at any time in such form as the Trustee may require. Neither the Plan Administrator, the Trustee, the Employer nor any other person shall be responsible or liable for any costs losses or expenses which may arise or result from or be related to the compliance or refusal or failure to comply with any directions from the Participant. The Trustee may refuse to comply with any direction from the Participant in the event the Trustee, in its sole or absolute discretion, deems such direction improper by virtue of applicable law or regulations or as may be necessary or appropriate, in the sole discretion of the Trustee, to prevent future investments by the Participant in The Employer Stock Fund, effective at the close of trading on November 2, 2009. For purposes of this Section, all references to “Participant” shall include all Beneficiaries of Participants who are deceased and any Alternate Payees under a Qualified Domestic Relations Order, as provided for in Section 19.01. 
		

		
			16.03       Default Investment. 
		

		
			(a)          General Rules. 
		

		
			(i)            Qualified Default Investment Alternative. If a Participant or Beneficiary has the opportunity to direct the investment of the assets in his or her Account (but does not direct the investment of such assets), then such assets in his or her Account will be invested in a Qualified Default Investment Alternative. 
		

		
			 
		

		
			(ii)           Transfer from Qualified Default Investment Alternative. Any Participant or Beneficiary on whose behalf assets are invested in a Qualified Default Investment Alternative may transfer, in whole or in part, such assets to any other investment alternative available under the Plan with a frequency consistent with that afforded to a Participant or Beneficiary who elected to invest in the Qualified Default Investment Alternative, but not less frequently than once within any 3-month period. 
		

		
			(iii)          No Fees during First 90 Days. Any Participant’s or Beneficiary’s election to make such transfer from the Qualified Default Investment Alternative, or a Permissible Withdrawal (by any Eligible Participant who is enrolled in the Automatic Contribution Arrangement prior to January 1, 2011), or other first investment in a Qualified Default Investment Alternative on behalf of a Participant or Beneficiary, will not be subject to any restrictions, fees or expenses (including surrender charges, liquidation or exchange fees, redemption fees and similar expenses charged in connection with the liquidation of, or transfer from, the investment), except as permitted in Department of Labor Regulation Section 2550.404c–5(c)(5)(ii)(B). 
		

		
			(iv)          Limited Fees after First 90 Days. Following the end of the 90-day period described in paragraph (iii), any transfer described in paragraph (ii) above or Permissible Withdrawal (by any Eligible Participant who is enrolled in the Automatic Contribution Arrangement prior to January 1, 2011), shall not be subject to any restrictions, fees or expenses not otherwise applicable to a Participant or Beneficiary who elected to invest in that Qualified Default Investment Alternative. 
		

		
			(v)           Materials Must Be Provided. A Plan fiduciary shall provide to a Participant or Beneficiary the materials set forth in Department of Labor Regulation Section 2550.404c-1(b)(2)(i)(B)(1)(viii) and (ix) and Department of Labor Regulation Section 404c-1(b)(2)(i)(B)(2) relating to a Participant’s or Beneficiary’s investment in a Qualified Default Investment Alternative. 
		

		
			(b)          Notice Requirements. The following provisions apply to the notice required by a Qualified Default Investment Alternative: 
		

		
			(i)            Manner. Such notice will be written in a manner calculated to be understood by the average Plan Participant. 
		

		
			 
		

		
			(ii)           Content. Such notice will contain the following: 
		

		
			A.           A description of the circumstances under which assets in the individual account of a Participant or Beneficiary may be invested on behalf of the Participant or Beneficiary in a Qualified Default Investment Alternative; and, if applicable, an explanation of the circumstances under which Automatic Contributions will be made on behalf of a Participant, the percentage of Compensation that such Automatic Contributions represent, and the right of the Participant to elect not to have such made on the Participant’s behalf (or to elect to have Salary Reduction Contributions made at a different percentage); 
		

		
			B.              An explanation of the right of Participants and Beneficiaries to direct the investment of assets in their individual accounts; 
		

		

		

		 

		

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		C.           A description of the Qualified Default Investment Alternative, including a description of the investment objectives, risk and return characteristics (if applicable), and fees and expenses attendant to the Qualified Default Investment Alternative; 
		

		
			D.           A description of the right of the Participants and Beneficiaries on whose behalf assets are invested in a Qualified Default Investment Alternative to direct the investment of those assets to any other investment alternative under the Plan, including a description of any applicable restrictions, fees or expenses in connection with such transfer; and 
		

		
			E.            An explanation of where the Participants and Beneficiaries can obtain investment information concerning the other investment alternatives available under the Plan. 
		

		
			(iii)          Timing. The Participant or Beneficiary on whose behalf an investment in a Qualified Default Investment Alternative may be made must be furnished such notice during the following periods: (1) At least 30 days in advance of the Participant’s eligibility to participate in the Plan, or at least 30 days in advance of the date of any first investment in a Qualified Default Investment Alternative on behalf of a Participant or Beneficiary; and (2) Within a reasonable period of time of at least 30 days in advance of each subsequent Plan Year. 
		

		
			 
		

		
			ARTICLE XVII
		

		
			CLAIMS PROCEDURE
		

		
			17.01       Claims Fiduciary. The Plan Administrator will act as Claims Fiduciary except to the extent that the Plan Administrator has delegated the function to some other person or persons, committee or entity. 
		

		
			Notwithstanding any provision elsewhere to be contrary, the Claims Fiduciaries shall have total discretion to fulfill their fiduciary duties as they see fit on a uniform and consistent basis as they believe a prudent person acting in a like capacity and familiar with such matters would do. 
		

		
			17.02       Claims for Benefits. Claims for benefits under the Plan may be filed with the Plan Administrator on forms supplied by the Employer. For the purpose of this procedure, “claim” means a request for a Plan benefit by a Participant or a Beneficiary of a Participant. If the basis of the claim includes documentation not a part of the records of the Plan or of the Employer, all such documentation must be included with the claim. 
		

		
			17.03       Notice of Denial of Claim. If a claim is wholly or partially denied, the Plan Administrator shall notify the claimant of the denial of the claim within a reasonable period of time. Such notice of denial (i) shall be in writing, (ii) shall be written in a manner calculated to be understood by the claimant, and (iii) shall contain (A) the specific reason or reasons for denial of the claim, (B) a specific reference to the pertinent Plan provisions upon which the denial is based, (C) a description of any additional material or information necessary for the claimant to perfect the claim, along with an explanation why such material or information is necessary, and (D) an explanation of the Plan’s claim review procedure. Unless special circumstances require an extension of time for processing the claim, the Plan Administrator shall notify the claimant of the claim denial no later than 90 days after receipt of the claim. If such an extension is required, written notice of the extension shall be furnished to the claimant prior to the termination of the initial 90-day period. The extension notice shall indicate the special circumstances requiring the extension of time and the date by which the Plan Administrator expects to render the final decision. 
		

		
			 
		

		
			17.04       Request for Review of Denial of Claim. Within 120 days of the receipt of the claimant of the written notice of the denial of the claim, or such later time as shall be deemed reasonable taking into account the nature of the benefit subject to the claim and any other attendant circumstances or if the claim has not been granted within a reasonable period of time, the claimant may file a written request with the Plan Administrator to conduct a full and fair review of the denial of the claimant’s claim for benefits. In connection with the claimant’s appeal of the denial of his or her benefit, the claimant may review pertinent documents and may submit issues and comments in writing. 
		

		
			17.05       Decision on Review of Denial of Claim. The Plan Administrator shall deliver to the claimant a written decision on the claim promptly, but not later than 60 days, after the receipt of the claimant’s request for review, except that if there are special circumstances, which require an extension of time for processing, the aforesaid 60-day period may be extended to 120 days. Such decision shall (i) be written in a manner calculated to be understood by the claimant, (ii) include specific reasons for the decision, and (iii) contain specific references to the pertinent Plan provisions upon which the decision is based. 
		

		

		

		 

		

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			ARTICLE XVIII
		

		
			AMENDMENT AND TERMINATION
		

		
			18.01       Employer May Amend Plan. The Plan may be modified or amended in whole or in part by the action of the Board of Directors of the Employer at any time or times, and retroactively if it is deemed advisable by the Directors to conform the Plan to conditions which must be met to qualify the Plan or the Trust Indenture for tax benefits available under the applicable provisions of the Internal Revenue Code as it exists at any such time or times; provided,  however, that no such modifications or amendment shall make it possible for any part of the Trust Fund to be used for purposes other than the exclusive benefit of the Participants or their Beneficiaries. 
		

		
			Notwithstanding the above paragraph, an amendment to the Plan may not decrease a Participant’s Accrued Benefit, and may not reduce or eliminate a benefit, right or feature of this Plan that is protected under Code Section 411(d)(6) (except as provided for by the Code or the Treasury Regulations issued thereunder) determined immediately prior to the date of adoption, or if later, the effective date of the amendment. Should any early retirement benefit or other optional retirement benefits be changed by amendment to this Plan, all benefits accrued prior to the date of such amendment shall not be reduced. 
		

		
			 
		

		
			18.02       Employer May Discontinue Plan. The Employer reserves the right at any time to partially terminate the Plan or to terminate the Plan in its entirety. Any such termination or partial termination of such Plan shall become effective immediately upon receipt by the Trustee of a copy of the vote or resolutions of the Directors of the Employer terminating its Plan, certified as true and correct by the clerk or secretary of the Employer. For Plan Years beginning on or after January 1, 2007, a partial plan termination shall be deemed to have occurred based on the facts and circumstances in existence at the time as required by Section 1.411(d)-2(b)(1) of the Treasury Regulations and Revenue Ruling 2007-43. 
		

		
			In the event of termination of the Plan there shall be a 100% vesting and nonforfeitability of all rights and benefits under this Trust and Plan irrespective of the length of participation under the Plan. However, the Trust shall remain in existence, and all of the provisions of the Trust shall remain in force, which are necessary in the sole opinion of the Trustees other than the provisions relating to Employer and Employee contributions. All of the assets on hand on the date specified in such resolution shall be held, administered and distributed by the Trustees in the manner provided in the Plan, except that a Participant shall have a 100% vested and nonforfeitable interest in his or her Accounts, subject to Section 18.05. 
		

		
			Subject to Section 18.05, any other remaining assets of the Trust Fund shall also be vested in Participants on a pro rata basis based on their respective Accrued Benefit in relation to the aggregate of the Accrued Benefits of all Participants. In the event of a partial termination of Plan, this section will only apply to those Participants who are affected by such partial termination of Plan. In the event that the Board of Directors of the Employer shall decide to terminate completely the Plan and Trust, they shall be terminated as of a date to be specified in certified copies of its resolution to be delivered to the Trustees. Upon termination of the Plan and Trust, after payment of all expenses and proportional adjustment of Participants’ Accounts to reflect such expenses, fund profits or losses and reallocations to the date of termination, each Participant shall be entitled to receive in cash any amounts then credited to his or her Participants’ Accounts. 
		

		
			18.03       Discontinuance of Contributions. In the event that the Employer shall completely discontinue its contributions, each Participant or Beneficiary of a Participant affected shall be fully vested in any values credited to his or her Participant’s Accounts. All of the assets on hand on the date contributions are discontinued shall be held, administered and distributed by the Trustees in the manner provided in the Plan. 
		

		
			18.04       Merger and Consolidation of Plan, Transfer of Plan Assets or Liabilities. In the case of any merger, consolidation with or transfer of assets or liabilities by the Employer to another plan, each Participant in the Plan on the date of the transaction shall have a benefit in the surviving plan (determined as if such plan were terminated immediately after the transaction) at least equal to the benefit to which he or she would have been entitled to receive immediately prior to the transaction if the plan had then terminated. 
		

		
			 
		

		
			18.05       Return of Employer Contributions Under Special Circumstances. Notwithstanding any provisions of this Plan to the contrary: 
		

		
			(a)           Any monies or other Plan assets held in Trust by the Trustee attributable to any contributions made to this Plan by the Employer because of a mistake of fact may be returned to the Employer within one year after the date of contribution. 
		

		
			(b)           Any monies or other Plan assets held in Trust by the Trustee attributable to any contribution made by the Employer which is conditional on the initial qualification of the Plan, as amended, under the Internal Revenue Code may be refunded to the Employer; provided that: 
		

		
			(i)            the Plan amendment is submitted to the Internal Revenue Service for qualification within one year from the date the amendment is adopted, and 
		

		
			(ii)            Such contribution that was made conditioned upon Plan requalification is returned to the Employer within one year after the date the Plan’s requalification is denied. 
		

		

		

		 

		

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		(c)            Any monies or other Plan assets held in Trust by the Trustee attributable to any contribution made by the Employer which is conditional on the deductibility of such contribution may be refunded to the Employer, to the extent the deduction is disallowed under Section 404 of the Code, within one year after the date of such disallowance. 
		

		
			ARTICLE XIX
		

		
			MISCELLANEOUS
		

		
			19.01       Protection of Employee Interest. No Participant, Beneficiary or other person, including alternate payees entitled to benefits pursuant to a Qualified Domestic Relations Order, shall have the right to assign, pledge, alienate or convey any right, benefit or payment to which he or she shall be entitled in accordance with the provisions of the Plan, and any such attempted assignment, pledge, alienation or conveyance shall be null and void and of no effect. To the extent permitted by law, none of the benefits, payments, proceeds or rights herein created and provided for shall in any way be subject to any debts, contracts or engagements of any Participant, Beneficiary, alternate payee or other person entitled to benefits hereunder, nor to any suits, actions or other judicial process to levy upon or attach the same for the payment thereof. Provided,  however, that this provision does not preclude the Plan Administrator from complying with the terms of a Qualified Domestic Relations Order. 
		

		
			If any Participant shall attempt to alienate or assign his or her interest provided by the Plan, the Plan Administrator shall take such steps as it deems necessary to preserve such interest for the benefit of the Participant or his or her Beneficiary. 
		

		
			 
		

		
			Notwithstanding anything in this Section or Plan to the contrary, the Plan Administrator (i) shall comply with the terms of any Qualified Domestic Relations Order, as described in Section 414(p) of the Internal Revenue Code entered on or after January 1, 1985, and (ii) shall comply with the terms of any domestic relations order entered before January 1, 1985 if the Administrator is paying benefits pursuant to such order on such date. 
		

		
			19.02       USERRA Compliance. For Plan Years beginning on or after January 1, 2006, notwithstanding any provisions of this Plan to the contrary, contributions, benefits and service credit with respect to qualified military service will be provided in accordance with the rules and requirements of the Uniformed Services Employment and Reemployment Rights Act of 1994 and Section 414(u) of the Code. 
		

		
			19.03       Amendment to Vesting Schedule. No amendment to the Plan vesting schedule shall deprive a Participant of his or her nonforfeitable rights to benefits accrued to the date of the amendment. Further, if the vesting schedule of the Plan is amended, or the Plan is amended in any way that directly or indirectly affects the computation of a Participant’s nonforfeitable percentage, each Participant with at least 3 Years of Service with the Employer may elect, within a reasonable period after the adoption of the amendment, to have his or her nonforfeitable percentage computed under the Plan without regard to such amendment. The period during which the election may be made shall commence with the date the amendment is adopted and shall end on the latest of: 
		

		
			(i)            60 days after the amendment is adopted; 
		

		
			(ii)           60 days after the amendment becomes effective; or 
		

		
			(iii)          60 days after the Participant is issued written notice of the amendment by the Employer or Plan Administrator. 
		

		
			19.04       Meaning of Words Used in Plan. Wherever any words are used herein in the masculine gender, they shall be construed as though they were also used in the feminine or neuter gender in all cases where they would so apply. Wherever any words are used herein in the singular form, they shall be construed as though they were also used in the plural form in all cases where they would so apply. 
		

		
			Titles used herein are for general information only and this Plan is not to be construed by reference thereto. 
		

		
			19.05       Plan Does Not Create Nor Modify Employment Rights. The Plan and Trust shall not be construed as creating or modifying any contracts of employment between the Employer and any Participant. All Employees of the Employer shall be subject to discharge to the same extent that they would have been if the Plan and Trust had never been adopted. 
		

		
			 
		

		
			19.06       Massachusetts Law Controls. This Plan shall be governed by the laws of the Commonwealth of Massachusetts to the extent that they are not pre-empted by the laws of the United States of America. 
		

		
			19.07       Payments to Come from Trust Fund. All benefits and amounts payable under the Plan or Trust Indenture shall be paid or provided for solely from the Trust Fund, and neither the Employer nor the Plan Administrator assumes any liability or responsibility therefor. 
		

		

		

		 

		

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			19.08       Receipt and Release for Payments. Any payment to any Participant, his or her legal representative, Beneficiary, or to any guardian or committee appointed for such Participant or Beneficiary in accordance with the provisions of this Plan and Trust, shall, to the extent thereof, be in full satisfaction of all claims hereunder against the Trustee and the Employer, any of whom may require such Participant, legal representative, Beneficiary, guardian, custodian or committee, as a condition precedent to such payment, to execute a receipt and release thereof in such form as shall be determined by the Trustee or Employer. 
		

		
			19.09       Electronic Communications. Effective for Plan Years beginning on or after January 1, 2007, any electronic communications made by the Plan to Participants in regards to eligible rollover distribution tax notices, Participant consents to distributions, and tax withholding notices shall comply with the requirements contained in Treasury Regulation Section 1.401(a)-21, in addition to all otherwise applicable requirements relating to the specific communication. 
		

		
			19.10       Plan Interpretation. If, due to errors in drafting, any Plan provision does not accurately reflect its intended meaning, as demonstrated by consistent interpretations or other evidence of intent, or as determined by the Plan Administrator in its sole and exclusive judgment, the provision shall be considered ambiguous and shall be interpreted by all Plan fiduciaries in a fashion consistent with its intent, as determined by the Employer in its sole discretion. The Employer shall amend the Plan retroactively to cure any such ambiguity. This section may not be invoked by any person to require the Plan to be interpreted in a manner that is inconsistent with its interpretation by Plan fiduciaries. 
		

		
			EXECUTED, this 21st day of December, 2011. 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						The Hanover Insurance Company

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Lorna Stearns

				
	
					
						 

					
					
						Lorna D. Stearns, Vice President

				

		
			 
		

		
			APPENDIX A
		

		
			Special provisions applicable to Employees formerly employed by One Beacon Insurance Group, LTD. or a business entity affiliated with One Beacon Insurance Group, LTD. 
		

		
			Notwithstanding anything elsewhere in the Plan to the contrary, the following special rules shall apply to each person (i) who became employed by the Employer on or after December 3, 2009, in connection with the transactions contemplated by the Renewal Rights and Asset Purchase Agreement dated December 3, 2009 by and among The Hanover Insurance Company, The Hanover Insurance Group, Inc., One Beacon Insurance Group, LTD. and certain business entities affiliated with One Beacon Insurance Group, LTD. and (ii) who was employed by One Beacon Insurance Group, LTD. or a business entity affiliated with One Beacon Insurance Group, LTD. immediately before being employed by the Employer: 
		

		
			1.For the purposes of vesting, each such person shall be given a past service credit under the Plan for his or her period of employment with One Beacon Insurance Group, LTD. or any business entity affiliated with One Beacon Insurance Group, LTD. from his most recent date of hire as shown on records furnished to the Employer to and including the date on which such person became employed by the Employer to the same extent as though such period were a period of employment with the Employer. 
		

		
			2.Any compensation paid to any such person by One Beacon Insurance Group, LTD. or a business entity affiliated with One Beacon Insurance Group, LTD. prior to the date on which such person became employed by the Employer shall NOT be taken into account for the purposes of this Plan. 
		

		
			APPENDIX B
		

		
			Special provisions applicable to Employees formerly employed by (i) Campania Holding Company, Inc. or its direct or indirect subsidiaries (“Campania”); (ii) Benchmark Professional Insurance Services, Inc. or its direct or indirect subsidiaries (“Benchmark”); or (iii) Insurance Company of the West or its direct or indirect subsidiaries (“ICW”). 
		

		
			Notwithstanding anything elsewhere in the Plan to the contrary, the following special rules shall apply to each person who became employed by the Employer: 
		

		
			•On or about January 15, 2010, in connection with the transactions contemplated by the Stock Purchase Agreement by and among The Hanover Insurance Group, Inc., Richard J. O’Gorman, Katherine Dimitrakopoulos and Benchmark Professional Insurance Services, Inc. dated January 15, 2010, and who was employed by Benchmark immediately before being employed by the Employer; 
		

		

		

		 

		

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			•On about March 31, 2010, in connection with the transactions contemplated by the Stock Purchase Agreement by and among The Hanover Insurance Group, Inc., Iona LLC, Campania Holding Company, Inc. and the Principal Members of Iona, LLC, dated January 15, 2010, and who was employed by Campania immediately before being employed by the Employer; or 
		

		
			•On or after July 8, 2010, in connection with the transactions contemplated by Surety Business Transition Agreement by and among Insurance Company of the West, certain of its insurance company subsidiaries and The Hanover Insurance Company dated July 8, 2010, and who was employed by ICW immediately before being employed by the Employer. 
		

		
			1.For the purposes of vesting, each such person shall be given a past service credit under the Plan for his or her period of employment with, as applicable, Campania, Benchmark or ICW, that immediately preceded his or her employment with the Employer, from his or her most recent date of hire as shown on records furnished to the Employer to and including the date on which such person became employed by the Employer to the same extent as though such period were a period of employment with the Employer. 
		

		
			2.Any compensation paid to any such person by, as applicable, Campania, Benchmark or ICW prior to the date on which such person became employed by the Employer shall NOT be taken into account for the purposes of this Plan. 
		

		
			 
		

		
			APPENDIX C
		

		
			Special provisions applicable to Employees formerly employed by (i) Professionals Direct, Inc. or its direct or indirect subsidiaries (“PDI”); (ii) Verlan Holdings, Inc. or its direct or indirect subsidiaries (“Verlan”); or (iii) AIX Holdings, Inc. or its direct or indirect subsidiaries (“AIX”). 
		

		
			(a)          PDI 
		

		
			Pursuant to a certain Agreement and Plan of Merger by and among Professionals Direct, Inc., Hanover Acquisition Corp. and The Hanover Insurance Group, Inc. dated June 25, 2007, on September 14, 2007 (the “PDI Closing Date”), an Affiliate of the Employer acquired Professionals Direct, Inc. and its subsidiaries. Employees of PDI who continued to be employed by PDI after the PDI Closing Date (“PDI Closing Hires”) remained employees of PDI (now an Affiliate of Employer) on a separate PDI payroll up to and through December 31, 2007 (the “PDI Transition Period”) when their employment was transferred from PDI to the Employer. 
		

		
			(1)Notwithstanding anything elsewhere in the Plan to the contrary, the following special rules shall apply to PDI Closing Hires: 
		

		
			(i)            PDI Closing Hires shall be eligible to participate in the Plan, subject to its provisions, effective as of the PDI Closing Date and to the same extent that such employees would otherwise have been eligible to participate in the Plan had such PDI Closing Hires commenced employment with the Employer on the PDI Closing Date. 
		

		
			(ii)           For the purposes of vesting, each such person shall be given a past service credit under the Plan for his or her period of employment with PDI that immediately preceded his or her employment with the Employer, from his or her most recent date of hire as shown on records furnished to the Employer to and including the date on which such person became employed by the Employer (or if terminated during the PDI Transition Period, until the date of termination) to the same extent as though such period were a period of employment with the Employer. 
		

		
			(iii)           Any compensation paid to any such person by PDI prior to the PDI Closing Date shall NOT be taken into account for the purposes of this Plan. 
		

		
			(b)          Verlan 
		

		
			(1)Notwithstanding anything elsewhere in the Plan to the contrary, the following special rules shall apply to each person who became employed by the Employer effective on or about March 14, 2008, in connection with the transactions contemplated by the Agreement and Plan of Merger by and among The Hanover Insurance Group, Inc., Northdale Acquisition Corp. and Verlan Holdings, Inc. dated January 10, 2008, and who was employed by Verlan immediately before being employed by the Employer; 
		

		
			(i)            For the purposes of vesting, each such person shall be given a past service credit under the Plan for his or her period of employment with Verlan that immediately preceded his or her employment with the Employer, from his or her most recent date of hire as shown on records furnished to the Employer to and including the date on which such person became employed by the Employer to the same extent as though such period were a period of employment with the Employer. 
		

		
			(ii)            Any compensation paid to any such person by Verlan prior to the date on which such person became employed by the Employer shall NOT be taken into account for the purposes of this Plan. 
		

		

		

		 

		

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		(c)          AIX 
		

		
			Pursuant to a certain Stock Purchase Agreement by and among AIX Holdings, Inc., certain of its shareholders and The Hanover Insurance Group, Inc. dated August 5, 2008, on November 28, 2008 (the “AIX Closing Date”), an Affiliate of the Employer acquired AIX Holdings, Inc. and its subsidiaries. Employees of AIX who continued to be employed by AIX after the AIX Closing Date (“AIX Closing Hires”) remained employees of AIX (now an Affiliate of Employer) on a separate AIX payroll up to and through December 31, 2009 (the “AIX Transition Period”) when the employment of these employees was transferred from AIX to the Employer. Additionally, those employees hired by AIX during the AIX Transition Period (“AIX Transition Hires”) also remained employees of AIX on a separate AIX payroll until the expiration of the AIX Transition Period when such employees were transferred from AIX to the Employer. 
		

		
			(1)Notwithstanding anything elsewhere in the Plan to the contrary, the following special rules shall apply to AIX Closing Hires and AIX Transition Hires: 
		

		
			(i)            AIX Closing Hires shall be eligible to participate in the Plan, subject to its provisions, effective as of the AIX Closing Date and to the same extent that such employees would otherwise have been eligible to participate in the Plan had such AIX Closing Hires commenced employment with the Employer on the AIX Closing Date. 
		

		
			(ii)            AIX Transition Hires shall be eligible to participate in the Plan, subject to its provisions, effective as of as their date of hire by AIX and to the same extent that such employees would otherwise have been eligible to participate in the Plan had such AIX Transition Hires commenced employment with the Employer on their date of hire with AIX. 
		

		
			 
		

		
			(iii)           For the purposes of vesting, each such person shall be given a past service credit under the Plan for his or her period of employment with AIX that immediately preceded his or her employment with the Employer, from his or her most recent date of hire as shown on records furnished to the Employer to and including the date on which such person became employed by the Employer (or if terminated during the AIX Transition Period, until the date of termination) to the same extent as though such period were a period of employment with the Employer. 
		

		
			(iv)             Any compensation paid to any such person by AIX prior to the AIX Closing Date shall NOT be taken into account for the purposes of this Plan. 
		

		
			 
		

		

		

		 

		

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		THE HANOVER INSURANCE GROUP
		

		
			RETIREMENT SAVINGS PLAN
		

		
			AMENDMENT
		

		
			To the Restatement Generally Effective January 1, 2010
		

		
			THIS AMENDMENT is executed by The Hanover Insurance Company, a New Hampshire corporation (the “Company”).
		

		
			WHEREAS, the most recent restatement of The Hanover Insurance Group Retirement Savings Plan (the “Plan”) is effective January 1, 2010; and 
		

		
			WHEREAS, the Company has reserved the right to amend the Plan any time under Section 18.01 of the Plan; and 
		

		
			WHEREAS, the Company desires to amend the Plan to, among other things, add a Roth feature to the Plan effective January 1, 2011. 
		

		
			NOW, THEREFORE, the Plan is amended effective as of January 1, 2011 except as otherwise specified, as follows: 
		

		
			1.              Insert the following new paragraph at the end of Section 1.03 of the Plan: 
		

		
			“Notwithstanding any other provision of this Plan to the contrary, the Effective Date of the provisions of this Plan that relate to Roth Elective Deferrals is January 1, 2011.” 
		

		
			2.              Delete the definition of the term “Accrued Benefit” in Article II of the Plan in its entirety and insert the following new definition in lieu thereof: 
		

		
			“‘Accrued Benefit’ shall mean the sum of the balances in a Participant’s 401(k) Account, Roth Elective Deferral Account, Match Contribution Account, Non-Elective Employer Contribution Account, Regular Account, Rollover Account, Tax Deductible Contribution Account and Voluntary Contribution Account.” 
		

		
			3.              Delete the definition of the term “Automatic Contributions” in Article II of the Plan in its entirety and insert the following new definition in lieu thereof: 
		

		
			“‘Automatic Contributions’ shall mean the Pre-tax Elective Deferrals that result from the operation of this Section 5.05(c) of the Plan.” 
		

		
			 
		

		
			4.              Delete the definition of the term “Automatic Contribution Arrangement” in Article II of the Plan in its entirety and insert the following new definition in lieu thereof: 
		

		
			“‘Automatic Contribution Arrangement’ shall mean the arrangement set forth in Section 5.05 of the Plan pursuant to which, in the absence of an Affirmative Election, an Employee, who is eligible to participate in the Plan is treated as having elected to direct the Employer to reduce his or her Compensation in order that the Employer may make Pre-tax Elective Deferrals to the Plan on behalf of the Participant equal to a uniform percentage of Compensation.” 
		

		
			5.             Delete subparagraph (i) in the second paragraph of Section 2.11(a) of the Plan in its entirety and insert the following new definition in lieu thereof: 
		

		
			“(i)incentive compensation paid to Participants pursuant to the Employer’s Executive Long Term Performance Unit Plan or pursuant to any similar or successor cash or equity long-term incentive compensation plan;” 
		

		
			6.              Delete the last sentence of the first paragraph of Section 2.11(b) of the Plan in its entirety and insert the following new definition in lieu thereof: 
		

		
			“Notwithstanding the foregoing, Compensation for purposes of the Plan shall also include Employee elective deferrals under Code Section 402(g)(3), Roth Elective Deferrals and any amounts contributed or deferred by the Employer at the election of the Employee and not includible in the gross income of the Employee, by reason of Code Sections 125, 132(f)(4), 402(e)(3), 402(h), and 403(b).” 
		

		
			7.             Delete paragraph (d)(ii) of Section 2.11 of the Plan in its entirety and insert the following new definition in lieu thereof: 
		

		

		

		 

		

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			“(ii)Differential Wage Payments. For years beginning after December 31, 2008, (i) an individual receiving a differential wage payment, as defined by Code Section 3401(h)(2), shall be treated as an Employee of the Employer making the payment, (ii) the differential wage payment shall be treated as Compensation for the purposes of Code Section 415(c)(3) and Treasury Regulation section 1.415(c)-2 (e.g., for the purposes of Code Section 415, top-heavy provisions of Code Section 416, determination of highly compensated employees under Code Section 414(q)), and (iii) the Plan shall not be treated as failing to meet the requirements of any provision described in Code Section 414(u)(1)(C) by reason of any contribution or benefit which is based on the differential wage payment. Subparagraph (iii) of the foregoing sentence shall apply only if all Employees of the Employer performing service in the uniformed services described in Code Section 3401(h)(2)(A) are entitled to receive differential wage payments (as defined in Code Section 3401(h)(2)) on reasonably equivalent terms and, if eligible to participate in a retirement plan maintained by the Employer, to make contributions based on the payments on reasonably equivalent terms (taking into account Code Sections 410(b)(3), (4), and (5)).” 
		

		
			 
		

		
			8.             Delete the definition of the term “Employee” in Article II of the Plan in its entirety and insert the following new definition in lieu thereof: 
		

		
			“‘Employee’ shall mean any person reported on the payroll records of the Employer as an Employee who is deemed by the Employer to be a common law Employee. However, the term Employee will not include any individual who is not reported on the payroll records of the Employer or an affiliated Employer as a common law Employee. If such person is later determined by the Employer or by a court or governmental agency to be or to have been an Employee, he or she will only be eligible for participation prospectively and may participate in the Plan as of the next entry date following such determination and after the satisfaction of all other eligibility requirements” 
		

		
			9.             Delete definition of the term “401(k) Account” in Article II of the Plan in its entirety and insert the following new definition in lieu thereof: 
		

		
			“‘401(k) Account’ shall mean the account established and maintained for each Participant who has directed the Employer to make Pre-tax Elective Deferral Contributions to the Trust on his or her behalf or for whom the Employer has made 401(k) Employer Contributions to the Trust on his or her behalf, and all earnings and appreciation thereon, less any withdrawals therefrom and any losses and expenses charged thereto.” 
		

		
			10.            Insert the following new definitions in Article II of the Plan: 
		

		
			“‘Pre-tax Elective Deferral’ shall mean a Salary Reduction Contribution that is not includible in the gross income of the Eligible Employee on whose behalf the contribution is made at the time that the deferral is made. 
		

		
			‘Roth Elective Deferral’ shall mean a Salary Reduction Contribution that has been irrevocably designated as Roth Elective Deferral by the Participant in his or her Salary Reduction Agreement and that is includible in the Participant’s gross income for tax purposes at the time the deferral is made pursuant to Code Section 402A and any applicable guidance or regulations issued thereunder. Roth Elective Deferrals may be treated as Catch-Up Contributions. Roth Elective Deferrals shall be maintained in a separate account for each Participant who has directed the Employer to make a Roth Elective Deferral to the Trust. 
		

		
			‘Roth Elective Deferral Account’ shall mean the separate account established and maintained for each Participant who has directed the Employer to make a Roth Elective Deferrals to the Trust on his or her behalf to record the contribution and withdrawal of a Participant’s Roth Elective Deferrals and other adjustments as required by the Plan. No contributions other than designated Roth Elective Deferrals and direct rollover contributions described in Code Section 402A(c)(3) may be allocated to a Roth Elective Deferral Account.” 
		

		
			 
		

		
			11.            Delete definition of the term “Salary Reduction Agreement” in Article II of the Plan in its entirety and insert the following new definition in lieu thereof: 
		

		
			“‘Salary Reduction Agreement’ shall mean an agreement between the Employer and an Eligible Employee as set forth in Sections 3.01(b) and 5.04 of the Plan pursuant to which the Eligible Employee authorizes the Employer to withhold a specified percentage of his or her Compensation (otherwise payable in cash) for deposit to the Plan on behalf of such Employee.” 
		

		

		

		 

		

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			12.           Delete definition of the term “Salary Reduction Contribution” in Article II of the Plan in its entirety and insert the following new definition in lieu thereof: 
		

		
			“‘Salary Reduction Contribution’ shall mean the Pre-tax Elective Deferrals and or Roth Elective Deferrals made by the Employer to the Trust on behalf of an Eligible Employee pursuant to a Salary Reduction Agreement and in accordance with Section 5.04 of the Plan and or an Automatic Contribution made by the Employer on behalf of an Eligible Participant pursuant to the Automatic Contribution Arrangement provisions of Section 5.05 of the Plan. 
		

		
			With respect to any Plan Year the total amount of a Participant’s Salary Reduction Contributions is the sum of all employer contributions made on behalf of such Participant pursuant to a deferral under any qualified cash or deferred arrangement as described in Code Section 401(k), any Simplified Employee Pension Plan with a cash or deferred arrangement as described in Code Section 408(k)(6), any SIMPLE IRA Plan described in Code Section 408(p), any plan as described under Code Section 501(c)(18), and any Employer contributions made on behalf of a Participant for the purchase of an annuity contract under Code Section 403(b) pursuant to a Salary Deferral Agreement. 
		

		
			Pre-tax Elective Deferrals or Roth Elective Deferrals shall not include any deferrals properly distributed as Excess Annual Additions.” 
		

		
			13.            Delete the second paragraph of Section 4.01 of the Plan in its entirety and insert the following new paragraph in lieu thereof: 
		

		
			“Salary Reduction Contributions, including Catch-up Contributions described in Code Section 414(v), shall be allocated, as applicable, to a Participant’s 401(k) Account and or Roth Elective Deferral Account as soon as administratively feasible after being withheld from the Participant’s Compensation at the earliest date on which such contributions can reasonably be segregated from the Employer’s general assets but no later than by the 15th business day of the month following the month in which the Salary Reduction Contributions would have otherwise been payable to the Participant.” 
		

		
			14.            Delete section 4.04(b) of the Plan in its entirety and insert the following new paragraph in lieu thereof: 
		

		
			“(b)         For purposes of the minimum allocations set forth above, the percentage allocated to the Accounts of any Key Employee shall be equal to the ratio of the sum of the Employer Contributions allocated on behalf of such Key Employee divided by the Employee’s Compensation for the Plan Year (as defined for purposes of Article VII), not in excess of the applicable compensation dollar limitation imposed by Code Section 401(a)(17).” 
		

		
			 
		

		
			15.            Insert the following new paragraph at the end of Section 5.03 of the Plan: 
		

		
			“Effective on and after January 1, 2011 the Plan shall accept a direct rollover from another Roth Elective Deferral Account under a retirement plan as described in Code Section 402A(e)(1) in accordance with such uniform administrative procedures as the Plan Administrator shall establish. Notwithstanding the foregoing sentence, an in-plan Roth rollover shall not be permitted under this Plan. Any rollover of “designated Roth contributions”, as defined in Subsection 6.01(e), shall be subject to the requirements of Code Section 402(c). To the extent the Plan accepts Rollover Contributions of designated Roth contributions, the Plan will separately account for such contributions, including separate accounting for the portion of the Rollover Contribution that is includible in gross income and the portion that is not includible in gross income, if applicable. If the Plan accepts a direct rollover of designated Roth contributions, the Trustee and the Plan Administrator shall be entitled to rely on a statement from the distributing plan’s administrator identifying (i) the Eligible Employee’s basis in the rolled over amounts and (ii) the date on which the Eligible Employee’s 5-taxable-year period of participation (as required under Code Section 402A(d)(2) for a qualified distribution of designated Roth contributions) started under the distributing plan. If the 5-taxable-year period of participation under the distributing plan would end sooner than the Eligible Employee’s 5-taxable-year period of participation under the Plan, the 5-taxable-year period of participation applicable under the distributing plan shall continue to apply with respect to the Rollover Contribution.” 
		

		

		

		 

		

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			16.            Delete Section 5.04(a) of the Plan in its entirety and insert the following two paragraphs in lieu thereof: 
		

		
			“(a)         An Employee who is eligible to participate in the Plan may enter into a Salary Reduction Agreement with the Employer authorizing the Employer to withhold a portion of such Participant’s Compensation in order to make Salary Reduction Contributions to the Plan, including Catch-up Contributions. The Salary Reduction Agreement shall be made in a form approved by the Plan Administrator (including, if applicable, by means of telephone, computer, or other paperless media). The Compensation of any Eligible Employee electing to make a Salary Reduction Contribution shall be reduced by the whole percentage requested by the Employee; provided,  however, that the Plan Administrator shall identify the maximum whole percentage on an annual basis. Any Salary Reduction Agreement shall become effective as soon as administratively feasible after the Employee elects to have his or her Compensation reduced. For Plan Years beginning on or after January 1, 2006, except for occasional, bona fide administrative considerations, Salary Reduction Contributions made pursuant to a Salary Reduction Agreement cannot precede the earlier of (1) the performance of services relating to the contribution and (2) when the compensation that is subject to the election would be currently available to the Participant in the absence of an election to defer. 
		

		
			 
		

		
			Any such Salary Reduction Contribution shall be credited to the Participant’s 401(k) Account or Roth Elective Deferral account, whichever is applicable. A Participant may terminate deferrals at any time. A Participant may elect at any time to change or discontinue his or her Salary Reduction Agreement upon notice in accordance with uniform and nondiscriminatory procedures as the Plan Administrator shall adopt and communicate to the Participants. Any such election will be effective as soon as practicable following the receipt of the notification by the Plan Administrator or its delegate in accordance with uniform and nondiscriminatory procedures established and communicated to the Participants. The Plan Administrator may amend or terminate said agreement on notice to the affected Participant, if required to maintain the qualified status of the Plan.” 
		

		
			17.            Delete the second paragraph of Section 5.04(b) of the Plan in its entirety and insert the following new paragraph in lieu thereof: 
		

		
			“(b)        For Plan Years beginning prior to January 1, 2009, “make-up” Salary Reduction Contributions made by reason of an Eligible Employee’s qualified military service under Code section 414(u) shall not be taken into account for any year when calculating an employee’s Actual Deferral Percentage (under Section 9.01(a)) as provided for in Treasury Regulation section 1.401(k)-2(a)(5)(v) and Match Contributions thereon shall not be taken into account for any year when calculating an employee’s Average Contribution Percentage (under Section 10.01(a)) as provided for in Treasury Regulation section 1.401(m)-2(a)(5)(vi).” 
		

		
			18.            Delete Section 5.05(c)(i) of the Plan in its entirety and insert the following new section in lieu thereof: 
		

		
			“(i)Automatic Contributions. Except as provided in Section 5.05(d) of the Plan, an Eligible Participant will be treated as having elected to direct the Employer to reduce his or her Compensation in order that the Employer may make Pre-tax Elective Deferrals to the Plan equal to the following uniform percentages of Compensation: 
		

		
			A.           Initial Period. An Eligible Participant will be treated as having elected to have the Employer make Pre-tax Elective Deferrals to the Plan in an amount equal to 3% of his or her Compensation during the initial period. For this purpose, the initial period begins when the Employee is first subject to the Automatic Contributions default election under this Section 5.05(c)(i) and ends on the last day of the following Plan Year. 
		

		
			 
		

		
			B.              Subsequent Plan Years. For the three Plan Years immediately following the initial period, an Eligible Participant will be treated as having elected to have the Employer make Pre-tax Elective Deferrals to the Plan in the amounts equal to 4%, 5% and 6% respectively, of his or her Compensation. For all Plan Years thereafter, an Eligible Participant will be treated as having elected to have the Employer make Pre-tax Elective Deferrals to the Plan in the amounts equal to 6% of his or her Compensation. 
		

		

		

		 

		

			55

		

		

			 

		

 

		
		

		
			C.            Treatment of Rehires. The default percentages of Compensation stated above for the purposes of the Automatic Contributions are based on the date the initial period begins, regardless of whether the Employee continues to be eligible to make Pre-tax Elective Deferrals under the Plan after that date. Thus, the applicable percentage is generally determined based on the number of years since an Automatic Contribution was first made on behalf of an Eligible Participant. However, if Automatic Contributions are not made on behalf of an Eligible Participant for an entire Plan Year (e.g., due to termination of employment), such Eligible Participant shall be treated as having a new initial period for determining the default percentage of Compensation stated above (if Automatic Contributions are to recommence with respect to the Eligible Participant), regardless of what minimum percentage would otherwise apply to that Eligible Participant.” 
		

		
			19.            Delete the first sentence of Section 7.12 of the Plan in its entirety and insert the following new sentence in lieu thereof: 
		

		
			“The sum of the following amounts credited to a Participant’s Accounts for the Limitation Year except as otherwise provided below: 
		

		
			(i)           Employer contributions; 
		

		
			(ii)           Employee contributions; 
		

		
			(iii)        forfeitures; and 
		

		
			(iv)        allocations under a simplified employee pension.” 
		

		
			20.              Delete the last paragraph of Section 7.12 of the Plan in its entirety and insert the following new paragraph in lieu thereof: 
		

		
			“Other Amounts. Annual Additions shall not include: (1) The direct transfer of a benefit or employee contributions from a qualified plan to this Plan; (2) Rollover contributions (as described in Code Section 401(a)(31), 402(c)(1), 403(a)(4), 403(b)(8), 408(d)(3), and 457(e)(16)); (3) Repayments of loans made to a Participant from the Plan; (4) Catch-up Contributions; and (5) Repayments of amounts described in Code Section 411(a)(7)(B) (in accordance with Code Section 411(a)(7)(C)) and Code Section 411(a)(3)(D), as well as Employer restorations of benefits that are required pursuant to such repayments, as provide for in Plan Section 13.11.” 
		

		
			 
		

		
			21.            Delete the first paragraph of Section 8.01 of the Plan in its entirety and insert the following new paragraph in lieu thereof: 
		

		
			“The Plan Administrator or its agent shall establish a separate recordkeeping account for each Participant showing the fair market value of his or her Plan benefits. Each Participant’s account may be separated for recordkeeping purposes into the following sub-accounts: 401(k) Account, Roth Elective Deferral Account, Match Contribution Account, Non-Elective Employer Contribution Account, Regular Account, Rollover Account, Tax Deductible Contribution Account and Voluntary Contribution Account and such other accounts as the Plan Administrator shall deem appropriate for each Participant to account for the Participant’s Accrued Benefit. All contributions by or on behalf of a Participant shall be deposited to the appropriate Account.” 
		

		
			22.            Add the following new sentence at the end of Section 9.01(d) of the Plan: 
		

		
			“Excess Elective Deferrals shall be treated as Annual Additions under the Plan, unless such amounts are distributed no later than the first April 15 following the close of the Participant’s taxable year. Distribution of Excess Elective Deferrals for a year shall be made first from the Participant’s 401(k) Account to the extent that Pre-tax Elective Deferrals were made for the year.” 
		

		
			23.            Add the following new paragraph after the first paragraph of Section 9.08 of the Plan: 
		

		
			“The Plan Administrator may adopt a uniform written administrative policy that permits a Participant (including a Highly Compensated Employee) who has made Salary Reduction Contributions for a year where such contributions include both pre-tax Elective Deferrals and Roth Elective Deferrals to elect whether the Excess Elective Deferrals, are to be attributed to Pre-tax Elective Deferrals or Roth Elective Deferrals or a combination of the two. In the event that no such administrative policy is adopted, Excess Elective Deferrals will be first attributed to Pre-tax Elective Deferrals, and if such pre-tax contributions are not in an amount sufficient to make full correction, will then be attributed to Roth Elective Deferrals.” 
		

		

		

		 

		

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		24.            Delete the title and first sentence of Section 11.02 of the Plan in their entirety and insert the following new title and new first sentence in lieu thereof: 
		

		
			“11.02 Withdrawals from Match Contribution, 401(k) Account, Roth Elective Deferral Account, and Non-Elective Employer Contribution Accounts. At any time after a Participant attains Age 59 1/2 or is Totally and Permanently Disabled, a Participant shall have the right to request the Plan Administrator for a withdrawal in cash of amounts from the vested portion of his or her Match Contribution, 401(k) Account, or Roth Elective Deferral Account.” 
		

		
			 
		

		
			25.           Delete the sentence in the first paragraph of Section 11.02 of the Plan beginning “For Plan Years beginning after 1988...” in its entirety and insert the following new sentence in lieu thereof: 
		

		
			“For Plan Years beginning after 1988, an Employee shall have the right at any time to request the Plan Administrator for a withdrawal in cash of Salary Reduction Contributions, with earnings accrued thereon as of December 31, 1988 for “financial hardship”.” 
		

		
			26.            Delete the paragraph in Section 11.02 of the Plan beginning “The processing of applications and any distributions of amounts under this Section...” and insert the following new paragraph in lieu thereof: 
		

		
			“The processing of applications and any distributions of amounts under this Section shall be made as soon as administratively feasible. The amount of a distribution based upon “financial hardship,” less any income and penalty taxes, cannot exceed the amount required to meet the immediate financial need created by the hardship and not reasonably available from other resources of the Employee.” 
		

		
			27.           Delete the paragraph in Section 11.02 of the Plan beginning “In determining whether a hardship distribution is permissible the following special rules shall apply...” and insert the following new paragraph in lieu thereof: 
		

		
			“In determining whether a hardship distribution is permissible the following special rules shall apply: 
		

		
			(i)The following are the only financial needs considered immediate and heavy:’ 
		

		
			A.           Expenses incurred or necessary for medical care that would be deductible under Code Section 213(d) (determined without regard to whether the expenses exceed 7.5% of adjusted gross income) of the Employee, his or her spouse, children and other dependents; 
		

		
			B.           The cost directly related to the purchase (excluding mortgage payments) of the principal residence of the Employee; 
		

		
			C.           Payment of tuition and related educational expenses (including but not limited to expenses associated with room and board) for up to the next twelve (12) months of post-secondary education for the Employee, his or her spouse, children or other dependents as defined in Code Section 152, without regard to Code Sections 152(b)(1), (b)(2) and (d)(1)(B); 
		

		
			 
		

		
			D.           The need to prevent eviction of the Employee, from, or a foreclosure on the mortgage of, the Employee’s principal residence; 
		

		
			E.            Effective for the Plan Years commencing on and after January 1, 2012, payments for burial or funeral expenses for the Employee’s deceased parent, spouse, child or dependent as defined in Code Section 152 without regard to Code Section 152(d)(1)(B); or 
		

		
			F.            Effective for the Plan Years commencing on and after January 1, 2012, expenses for the repair of damage to the Employee’s principal residence that would qualify for the casualty deduction under Code Section 165 (determined without regard to whether the loss exceeds 10% of adjusted gross income). 
		

		
			(ii)A distribution will be considered as necessary to satisfy an immediate and heavy financial need of the Employee only if: 
		

		
			A.             The Employee has obtained all distributions, other than hardship distributions, and all nontaxable loans under all plans maintained by the Employer; 
		

		
			B.            All plans maintained by the Employer provide that the Employee’s Salary Reduction Contributions (and any other Employee contributions) will be suspended for six months (twelve months for hardship distributions made prior to January 1, 2002) after the receipt of the hardship distribution; provided that in the case of any Employee who has made an Affirmative Election, Salary Reduction Contributions, if any, under such an election shall resume at the end of such suspension period and provided further that in the case of an Eligible Participant who has not made an Affirmative Election, Automatic Contributions shall resume at the end of such suspension period subject to the provisions of Section 5.05 of the Plan. 
		

		

		

		 

		

			57

		

		

			 

		

 

		C.            The distribution, less any income and penalty taxes, is not in excess of the amount of an immediate and heavy financial need; and 
		

		
			D.            In addition for hardship distributions made before 2002, all plans maintained by the Employer provide that the Employee may not make Salary Reduction Contributions for the Employee’s taxable year immediately following the taxable year of the hardship distribution in excess of the applicable limit under Section 402(g)(1) of the Code for such taxable year less the amount of such Salary Reduction Contributions for the taxable year of the hardship distribution.” 
		

		
			 
		

		
			28.            Delete the first sentence of Section 11.04 of the Plan in its entirety and insert the following new sentence in lieu thereof: 
		

		
			“The Plan Administrator may impose a dollar minimum for partial withdrawals and may implement on a uniform and nondiscriminatory basis, an ordering rule for in-service withdrawals from a Participant’s Account.” 
		

		
			29.            Delete the fifth paragraph of Section 12.01 of the Plan in its entirety and insert the following new paragraph in lieu thereof: 
		

		
			“If the Plan Administrator approves a request for a loan, funds shall be withdrawn from the recordkeeping sub-accounts, including Roth Elective Deferrals, in the order specified in the loan policy provided that Tax Deductible Voluntary Contributions, plus earnings thereon, may not be used as security for Plan loans.” 
		

		
			30.            Add the following new sentence at the end of Section 13.04 of the Plan: 
		

		
			“Moreover, the Plan will credit the Participant’s qualified military service as service for vesting purposes, as though the Participant had resumed employment under USERRA immediately prior to the Participant’s death.” 
		

		
			31.             Add the following new paragraph at the end of Section 13.06 of the Plan: 
		

		
			“Notwithstanding any provisions of this Plan relating to required minimum distributions under Code section 401(a)(9), a Participant or Beneficiary who would have been required to receive required minimum distributions for 2009 but for the enactment of section 401(a)(9)(H) of the Code (“2009 RMDs”), and who would have satisfied that requirement by receiving distributions that are equal to the 2009 RMDs will not receive those distributions for 2009 unless the Participant or Beneficiary chooses to receive such distributions. Participants and Beneficiaries described in the preceding sentence will be given the opportunity to elect to receive the distributions described in the preceding sentence.” 
		

		
			32.            Insert the following new sentence immediately after the first sentence of the definition of the term, “eligible rollover distribution” as set forth in Section 13.13 of the Plan: 
		

		
			“An eligible rollover distribution also does not include: any corrective distributions of Excess Elective Deferrals or Roth Elective Deferrals under Code Section 402(g), and the income attributable thereto.” 
		

		
			 
		

		
			33.            Delete the definition of the term, “Direct Rollover” as set forth in Section 13.13 of the Plan in its entirety and insert the following new definition in lieu thereof: 
		

		
			“Direct Rollover: A direct rollover is a payment by the Plan to the eligible retirement plan specified by the distributee. A Direct Rollover of a distribution from a Roth Elective Deferral Account under this Plan will be made to another Roth Elective Deferral Account under an applicable retirement plan described in Code Section 402A(e)(1) or to a Roth IRA described in Code Section 408A, and only to the extent the rollover is permitted under the rules of Code Section 402(c). 
		

		
			Notwithstanding the provisions of this Plan relating to required minimum distributions under Code Section 401(a)(9), and solely for purposes of applying the direct rollover provisions of the Plan, 2009 RMDs (as defined in section 13.06 of the Plan), but only if paid with an additional amount that is an eligible rollover distribution without regard to IRC §401(a)(9)(H), will be treated as eligible rollover distributions.” 
		

		
			34.            Delete the first two paragraphs of Section 13.13(c) of the Plan in their entirety and insert the following new paragraphs in lieu thereof: 
		

		
			“For distributions after June 9, 2009, a non-spouse Beneficiary who is a “designated beneficiary” under Code Section 401(a)(9)(E) and the regulations thereunder, by a direct trustee-to-trustee transfer (“direct rollover”), may roll over all or any portion of his or her distribution to an individual retirement account or a individual retirement annuity as defined in Code Section 408(a) and 408(b) or Roth IRA as defined in Code Section 408A. In order to be able to roll over the distribution, the distribution otherwise must satisfy the definition of an eligible rollover distribution. 
		

		

		

		 

		

			58

		

		

			 

		

 

		Although a non-spouse Beneficiary may roll over directly a distribution as provided above, any distribution made prior to January 1, 2010 is not subject to the direct rollover requirements of Code 401(a)(31) (including Code Section 401(a)(31)(B), the notice requirements of Code Section 402(f) or the mandatory withholding requirements of Code Section 3405(c)). If a non-spouse Beneficiary receives a distribution from the Plan, the distribution is not eligible for a “60-day” rollover.” 
		

		
			35.            Delete the last sentence of the first paragraph of Section 18.02 of the Plan in its entirety and insert the following new sentence in lieu thereof: 
		

		
			“For Plan Years beginning on or after January 1, 2007, a partial plan termination shall be deemed to have occurred based on the facts and circumstances in existence at the time as required by Section 1.411(d)-2(b)(1) of the Treasury Regulations and Revenue Ruling 2007-43 and upon any such partial termination, the rights of all affected employees to the amounts credited to their accounts shall be non-forfeitable.” 
		

		
			This Amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment and, except as hereby amended; the Plan shall remain in full force and effect. 
		

		
			 
		

		
			IN WITNESS WHEREOF, this Amendment has been executed this 21st day of December, 2011. 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						THE HANOVER INSURANCE COMPANY

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Lorna Stearns

				
	
					
						 

					
					
						Lorna D. Stearns, Vice President

				

		
			 
		

		
			 
		

		

		

		 

		

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			THE HANOVER INSURANCE GROUP, INC.
		

		
			RETIREMENT SAVINGS PLAN
		

		
			SECOND AMENDMENT
		

		
			to the Restatement Generally Effective January 1, 2010
		

		
			This Second Amendment is executed by The Hanover Insurance Company, a New Hampshire corporation (the “Corporation”). 
		

		
			WHEREAS, the most recent restatement of the Plan was adopted on December 21, 2010 and was generally effective January 1, 2010, and such restatement was amended by the adoption of the first Amendment on December 21, 2011; and 
		

		
			WHEREAS, the Corporation has reserved the right to amend the Plan any time under Section 19.01 of the Plan; and 
		

		
			WHEREAS, the Corporation now desires to amend the Plan. 
		

		
			NOW, THEREFORE, the Plan is amended as follows: 
		

		
			1.               The following new sentence is added immediately following the first sentence of Section 11.02: 
		

		
			“During the period beginning January 1, 2004 and ending April 27, 2010 and on and after January 10, 2012, a Participant who has attained age 591/2 or is Totally and Permanently Disabled may also withdraw any part or all of the vested portion of his or her Non-Elective Employer Contribution Account.” 
		

		
			2.               The second paragraph of Section 13.06 is deleted in its entirety and the following new paragraph is inserted in lieu thereof: 
		

		
			“All distributions under this Plan will be made in accordance with Code section 401(a)(9), including the incidental death benefit requirements of the Code section, §401 (a)(9)G, regulations §1.401 (a)(9)-2 through §1.401 (a)(9)-9, and any other provisions reflecting Code section 401 (a)(9) that are prescribed in revenue rulings, notices and other guidance published in the Internal Revenue Bulletin. The Plan provisions reflecting Code section 401(a)(9) shall override any distribution options set out in the Plan that are inconsistent with Code section 401(a)(9).” 
		

		
			This Amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment. Except as amended hereby, the Plan shall remain in full force and effect in accordance with its terms. 
		

		
			IN WITNESS WHEREOF, this Second Amendment has been executed this 20th day of June, 2012. 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						THE HANOVER INSURANCE COMPANY

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Lorna D. Stearns

				
	
					
						 

					
					
						Lorna D. Stearns, Vice President

				

		
			 
		

		
			 
		

		

		

		 

		

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		THE HANOVER INSURANCE GROUP, INC.
		

		
			RETIREMENT SAVINGS PLAN
		

		
			THIRD AMENDMENT
		

		
			to the Restatement Generally Effective January 1, 2010
		

		
			This Third Amendment is executed by The Hanover Insurance Company, a New Hampshire corporation (the “Corporation”). 
		

		
			WHEREAS, the most recent restatement of the Plan was adopted on December 21, 2010 and was generally effective January 1, 2010, and such restatement was amended by the adoption of the First Amendment on December 21, 2011; and 
		

		
			WHEREAS, the a Second Amendment to the most recent restatement of the Plan has been proposed, and such amendment has not been adopted but shall be; and 
		

		
			WHEREAS, the Corporation has reserved the right to amend the Plan any time under Section 19.01 of the Plan; and 
		

		
			WHEREAS, the Corporation desires to amend the Plan to provide vesting credits to certain employees of the Corporation whose employment with the Corporation will be terminated in connection with the sale of Citizen’s Management, Inc. on or about April 30, 2012. 
		

		
			NOW, THEREFORE, the Plan is amended as follows: 
		

		
			1.              Section 13.01(a) of the Plan is amended by the addition of the following new sentence at the end of second paragraph Section 13.01(a) of: 
		

		
			“Notwithstanding the foregoing provisions of this paragraph, the Match Contribution and Non-Elective Employer Contribution Accounts of each Employee whose employment with The Hanover Insurance Company was terminated in connection with the sale of Citizen’s Management, Inc. on or about April 30, 2012 shall be 100% vested and nonforfeitable upon his or her termination of employment.” 
		

		
			This Amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment. Except as amended hereby, the Plan shall remain in full force and effect in accordance with its terms. 
		

		
			IN WITNESS WHEREOF, this Second Amendment has been executed this 27th day of April, 2012. 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						THE HANOVER INSURANCE COMPANY

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Lorna D. Stearns

				
	
					
						 

					
					
						Lorna D. Stearns, Vice President

				

		
			 
		

		
			 
		

		

		

		 

		

			61

		

		

			 

		

 

		THE HANOVER INSURANCE GROUP, INC.
		

		
			RETIREMENT SAVINGS PLAN
		

		
			FOURTH AMENDMENT
		

		
			to the Restatement Generally Effective January 1, 2010
		

		
			This Fourth Amendment is executed by The Hanover Insurance Company, a New Hampshire corporation (the “Corporation”). 
		

		
			WHEREAS, the most recent restatement of the Plan was adopted on December 21, 2010 and was generally effective on January 1, 2010 and such restatement was amended by the adoption of the First Amendment on December 21, 2011; the Second Amendment on June 20, 2012; and the Third Amendment on April 27, 2012; 
		

		
			WHEREAS, the Corporation has reserved the right to amend the Plan at any time under Section 19.01 of the Plan; and 
		

		
			WHEREAS, the Corporation desires to amend the Plan to provide vesting credits to certain employees of the Corporation whose employment with the Corporation was terminated in connection with the AIX transaction described below. 
		

		
			NOW, THEREFORE, the Plan is amended as follows: 
		

		
			1.              Section 13.01(a) of the Plan is amended by the addition of the following new sentence at the end of second paragraph Section 13.01(a): 
		

		
			“Notwithstanding the foregoing provisions of this paragraph, the Match Contribution and Non-Elective Employer Contribution Accounts of each of the following two Employees whose employment with The Hanover Insurance Company was terminated in connection with a transaction between AIX and XX pursuant to a certain Market Facilitation Agreement dated February 14, 2013 shall be 100% vested and nonforfeitable upon his or her termination of employment: XX and XX.” 
		

		
			This Amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment. Except as amended hereby, the Plan shall remain in full force and effect in accordance with its terms. 
		

		
			IN WITNESS WHEREOF, this Fourth Amendment has been executed this 21st day of June 2013. 
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						THE HANOVER INSURANCE COMPANY

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						 

					
						 

				
	
					
						 

					
					
						Maribeth Bearfield

					
						Executive Vice President

				

		
			 
		

		
			 
		

		

		

		 

		

			62

		

		

			 

		

 

		
		

		
			THE HANOVER INSURANCE GROUP, INC.
		

		
			RETIREMENT SAVINGS PLAN
		

		
			 
		

		
			FIFTH AMENDMENT
		

		
			to the Restatement Generally Effective January 1, 2010
		

		
			 
		

		
			This Fifth Amendment is executed by The Hanover Insurance Company, a New Hampshire Corporation (“the Corporation").
		

		
			 
		

		
			WHEREAS, the Corporation sponsors The Hanover Insurance Group Retirement Savings Plan (the "Plan");
		

		
			 
		

		
			WHEREAS, the most recent restatement  of the Plan was adopted  on December  21, 2011 was generally effective  on January  1, 2010 and such restatement  was amended  by the adoption of the First Amendment on December  21, 2011; the Second  Amendment  on June 20, 2012; the Third Amendment on April 27, 2012; and the Fourth Amendment on July 21, 2013;
		

		
			 
		

		
			WHEREAS, the Corporation has reserved the right to amend the Plan at any time under
		

		
			Section 19.01 of the Plan; and
		

		
			 
		

		
			WHEREAS, the Corporation desires to amend the Plan to clarify its administrative practices with respect to the manner in which Participants are permitted to elect to make or not to make Salary Reduction Contributions to the Plan.
		

		
			 
		

		
			NOW, THEREFORE, the Plan is amended, effective as of the date hereof, as follows:
		

		
			 
		

		
			1.             The definition of the term "Affirmative Election" in Article II of the Plan is deleted in its entirety and the following new Section 2.04 is inserted in lieu thereof:
		

		
			 
		

		
			"'Affirmative Election' shall mean an election by an Eligible Participant to (a) make Salary Reduction Contributions to the Plan at the whole percentage of his or her Compensation or at the separate whole percentages of his or her salary and other Compensation specified in his or her Salary Reduction Agreement, or (b) not to make Salary Reduction Contributions to the Plan.
		

		
			 
		

		
			2.             The definition of the term "Salary Reduction Agreement" in Article II of the Plan is deleted in its entirety and the following new definition is inserted in lieu thereof:
		

		
			 
		

		
			"Salary  Reduction  Agreement" shall mean an agreement  between  the Employer and an Eligible Employee as set forth in Sections 3.0l(b) and 5.04 pursuant  to which the Eligible Employee  authorizes  the Employer  to withhold  the specified  whole percentage of his or her Compensation or the specified  separate  whole percentages of his or her salary and other Compensation for deposit  to the Plan on behalf of such Eligible  Employee.
		

		
			 
		

		
			3.              Section 4.03 of the Plan is amended by the addition of the following new paragraph (d):
		

		
			 
		

		
			"(d)          Notwithstanding any other provision in the Plan to the contrary and subject to compliance with
		

		
			applicable Code discrimination laws, rules and regulations, each Participant who was an Employee on December 31, 2013, has been continuously employed from December 31, 2013 through March 3, 2014 and who earned Compensation during the Plan Year ended December 31, 2013, shall receive an Employer paid contribution of $500.00, whether or not such Employee has elected to make Salary Reduction Contributions to the Plan during such continuous period of employment.  This Employer contribution shall be made in cash to the Non-Elective Employer Contribution Account established for any such eligible Participant on or as soon after March 3, 2014 as is practicable and shall be invested per the direction of the Participant in accordance with Section 16.02 of the Plan."
		

		
			 
		

		
			4. The first paragraph of Section 5.04(a) of the Plan is deleted in its entirety and the following new paragraph is inserted in lieu thereof:
		

		
			 
		

		

		

		 

		

			63

		

		

			 

		

 

		
		

		
			"An Eligible Employee or Eligible Participant may enter into a Salary Reduction Agreement with the Employer authorizing the Employer to withhold a portion of his or her Compensation in order to make Salary Reduction Contributions to the Plan, including Catch-up Contributions.  The Salary Reduction Agreement shall be in such form as the Plan Administrator shall approve (including, if applicable by such means as telephonic communication or electronic media).  Each Eligible Employee or Eligible Participant who enters into a Salary Reduction Agreement shall specify a whole percentage of his or her Compensation or separate whole percentages of his or her salary and other Compensation to be withheld by the Employer and deposited to the Plan on his or her behalf.  Each Salary Reduction Agreement shall become effective as soon after the Eligible Employee or Eligible Participant has entered into the Salary Reduction Agreement as is administratively feasible.  For Plan Years beginning on or after January 1, 2006, except for occasional, bona fide administrative considerations, Salary Reduction Contributions made pursuant to a Salary Reduction Agreement cannot precede the earlier of (1) the performance of services relating to the contribution and (2) when the Compensation that is subject to the election would be currently available to the Participant in the absence of an election to defer."
		

		
			This Amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment.  Except as amended hereby, the Plan shall remain in full force and effect in accordance with its terms.
		

		
			IN WITNESS WHEREOF, this Fifth Amendment has been executed this 25th day of February, 2014.
		

		
			 
		

		

		

		 

		

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			THE HANOVER INSURANCE GROUP, INC.
		

		
			RETIREMENT SAVINGS PLAN
		

		
			 
		

		
			SIXTH AMENDMENT
		

		
			to the Restatement Generally Effective January 1, 2010
		

		
			 
		

		
			 
		

		
			This Sixth Amendment is executed by The Hanover Insurance Company, a New Hampshire corporation (the "Corporation").
		

		
			 
		

		
			WHERAS, the Corporation sponsors The Hanover Insurance Group Retirement Savings Plan (the “Plan”);
		

		
			 
		

		
			WHEREAS, the most recent restatement of the Plan was adopted on December 21, 2010 was generally effective on January 1, 2010 and such restatement was amended by the adoption of the First Amendment on December 21, 2011; the Second Amendment on June 20, 2012; the Third Amendment on Apri127, 2012; the Fourth Amendment on July 21, 2013; and the Fifth Amendment on February 25, 2014;
		

		
			 
		

		
			WHEREAS, the Corporation has reserved the right to amend the Plan at any time under Section 19.01 of the Plan; and
		

		
			 
		

		
			WHEREAS, the Corporation desires to amend the Plan to clarify the definition of the term "spouse" as to comply with the United States Supreme Court's  decision in United States v. Windsor, 133 S. Ct. 2675 (2013).
		

		
			 
		

		
			NOW, THEREFORE, the Plan is amended, effective June 26, 2013, as follows:
		

		
			 
		

		
			1.             The following new definition is added to Article II:
		

		
			 
		

		
			"Spouse" or "spouse" means the individual person to whom a Participant is legally married for Federal tax purposes on the applicable date required by the context or as otherwise provided for in the Plan; provided, however, that from June 26, 2013 through September 15, 2013, any reference to those terms means the individual, if any, to whom the Participant is married in a marriage that is recognized under the laws of the state of the Participant's residence on that date.
		

		
			 
		

		
			2.            The last sentence of the first paragraph of Section 13.08 is deleted in its entirety and the following new sentence is inserted in lieu thereof:
		

		
			 
		

		
			For purposes of this Section the term "spouse" means the spouse of the Participant on the date of the Participant’s death or on the date Plan benefits commence, whichever is applicable: provided that a former spouse will be treated in the same manner as a spouse to the extent provided under a Qualified Domestic Relations Order as described in Code Section 414(p).
		

		
			 
		

		
			This Amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment.  Except as amended hereby, the Plan shall remain in full force and effect in accordance with its terms.
		

		
			 
		

		
			IN WITNESS WHEREOF, this Sixth Amendment has been executed this 16th day of December. 2014.
		

		
			 
		

		
			 
		

		
			
		

		
			 
		

		
			 
		

		

		

		 

		

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			THE  HANOVER INSURANCE GROUP, INC.
		

		
			RETIREMENT SAVINGS PLAN
		

		
			 
		

		
			SEVENTH AMENDMENT
		

		
			to the Restatement Generally Effective January 1, 2010
		

		
			 
		

		
			This Seventh Amendment is executed by The Hanover Insurance Company, a New Hampshire corporation (the "Corporation").
		

		
			 
		

		
			WHEREAS, the Corporation sponsors The Hanover Insurance Group Retirement Savings Plan (the "Plan");
		

		
			 
		

		
			WHEREAS, the most recent restatement of the Plan was adopted on December 21, 2011, was generally effective on January 1, 2010 and such restatement was amended by the adoption of the First Amendment on December 21, 2011; the Second Amendment on June 20, 2012; the Third Amendment on April27, 2012; the Fourth Amendment on July 21, 2013; the Fifth Amendment on February 25, 2014; and the Sixth Amendment on December 16, 2014; and
		

		
			 
		

		
			WHEREAS, the Corporation has reserved the right to amend the Plan at any time under Section 19.0 I of the Plan.
		

		
			 
		

		
			NOW, THEREFORE, the Plan is amended, effective as of the date hereof, as follows:
		

		
			 
		

		
			1.              Section 4.03 of the Plan is amended by the addition of the following new paragraph (e):
		

		
			 
		

		
			"(e)          Notwithstanding  any other provision in the Plan to the contrary and subject to compliance with applicable Code discrimination laws, rules and regulations, each Participant who was an Employee on December 31, 2014, has been continuously employed from December 31, 2014 through March 2, 2015 and who earned Compensation during the Plan Year ended December 31,2014, shall receive an Employer paid contribution of $500.00, whether or not such Employee has elected to make Salary Reduction Contributions to the Plan during such continuous period of employment.  This Employer contribution shall be made in cash to the Non-Elective  Employer Contribution Account established for any such eligible Participant on or as soon after March 2, 2015 as is practicable and shall be invested per the direction of the Participant in accordance with Section 16.02 of the Plan."
		

		
			 
		

		
			This Amendment shall supersede the provisions of the Plan to the extent those provisions are inconsistent with the provisions of this Amendment.  Except as amended hereby, the Plan shall remain in full force and effect in accordance with its terms.
		

		
			 
		

		
			IN WITNESS WHEREOF, this Seventh Amendment has been executed this 28th day of January, 2015.
		

		
			 
		

		
			THE HANOVER INSURANCE COMPANY
		

		
			
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		 

		

			66

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