Document:

EX-10.1

    Exhibit
      10.2

    

    

    

    J.
      C. PENNEY CORPORATION, INC.

    MIRROR
      SAVINGS PLAN 

    

    

    

    AMENDED
      AND RESTATED, EFFECTIVE AS OF JANUARY 1, 2007

    

    

    

    

    

    

    

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    

    J.
      C. PENNEY CORPORATION, INC.

    

    MIRROR
      SAVINGS PLAN 

    

    Amended
      and Restated effective January 1, 2007

    

    

    INTRODUCTION

    

    

    The
      J. C.
      Penney Corporation, Inc. Mirror Savings Plans I and II (“Plans”) were adopted
      effective January 1, 1999 as part of a program to redesign the Company's
      qualified and non-qualified savings plans to optimize the retirement savings
      opportunities for Associates.

    

    The
      Plans
      are maintained by the Company on an unfunded basis primarily for the purpose
      of
      providing deferred compensation to a select group of management or highly
      compensated employees.

    

    Effective
      December 31, 2006, the J.C. Penney Corporation Inc. Mirror Savings Plan I was
      closed to new deferrals and new participants. Effective on January 1,
      2007,  J. C. Penney Corporation, Inc. amends and restates Mirror Savings
      Plan II and renames the
      plan
      the J.C. Penney Corporation, Inc. Mirror Savings Plan. 

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    J.
      C.
      PENNEY CORPORATION, INC.

    MIRROR
      SAVINGS PLAN 

    

    TABLE
      OF CONTENTS

                                                                      

    
      	  Article 	 	 	Page	 
	 ARTICLE
              ONE	 	
              DEFINITIONS

            	1	 
	 ARTICLE
              TWO	 	
              ELIGIBILITY
                AND PARTICIPATION

            	4	 
	
              2.01

            	 	
              Eligibility
                Determined for Each Plan Year

            	4	 
	
               2.02

            	 	
              Eligible
                Associate

            	4	 
	
               2.03

            	 	
              Participation

            	5	 
	
               2.04

            	 	
              Election
                to Defer

            	5	 
	
               2.05

            	 	
              Deferral
                Amounts

            	5	 
	
               2.06

            	 	
              Investment
                Elections

            	6	 
	 	 	 	 	 
	 ARTICLE
              THREE 	 	
              BENEFITS

            	7	 
	
               3.01

            	 	
              Establishment
                of Accounts

            	7	 
	
               3.02

            	 	
              Personal
                Accounts

            	7	 
	
               3.03

            	 	
              Company
                Accounts

            	7	 
	
               3.04

            	 	
              Mirror
                Company Matching Contribution

            	8	 
	
               3.05

            	 	
              Mirror
                Retirement Account Contribution

            	8	 
	
               3.06

            	 	
              Mirror
                Discretionary Contribution

            	9	 
	 	 	 	 	 
	ARTICLE
              FOUR	 	
              TRANSFERS

            	 	 
	
               4.01

            	 	
              Personal
                Accounts

            	10	 
	
               4.02

            	 	
              Company
                Accounts

            	10	 
	 	 	 	 	 
	ARTICLE
              FIVE	 	
              VESTING

            	11	 
	
               5.01

            	 	
              Personal
                Accounts

            	11	 
	
               5.02

            	 	
              Company
                Accounts

            	11	 
	
               5.03

            	 	
              Forfeitures

            	11	 
	 	 	 	 	 
	ARTICLE
              SIX 	 	
              TYPE
                OF PLAN

            	12	 
	
               6.01

            	 	
              Top
                Hat Plan

            	12	 
	
               6.02

            	 	
              No
                Funding

            	12	 

            

    
       

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      
        	  Article 	 	 	Page	 
	 ARTICLE
                SEVEN	 	
                DISTRIBUTIONS

              	13	 
	
                 7.01

              	 	
                Normal
                  Form of Payment

              	13	 
	
                 7.02

              	 	
                Separation
                  from Service

              	13	 
	
                 7.03

              	 	
                Death

              	13	 
	
                 7.04

              	 	
                Alternate
                  Form of Payment

              	14	 
	
                 7.05

              	 	
                Hardship
                  Distribution

              	14	 
	
                 7.06

              	 	
                Fund-Specific
                  Installments or Hardship Distributions

              	15	 
	
                 7.07

              	 	
                Form
                  of Payments 

              	15	 
	
                 7.08

              	 	
                Change
                  of Control 

              	16	 
	
                 7.09

              	 	
                Reemployed
                  Participants 

              	
                  19
                  

              	 
	 	 	 	 	 
	 ARTICLE EIGHT 	 	
                AMENDMENT
                  AND TERMINATION

              	20	 
	
                 8.01

              	 	
                Plan
                  Amendment

              	20	 
	
                 8.02

              	 	
                Plan
                  Termination

              	20	 
	
                 8.03

              	 	
                Automatic
                  Plan Termination

              	20	 
	
                 

              	 	
                 

              	
              	 
	
                ARTICLE
                  NINE

              	 	
                MISCELLANEOUS

              	21	 
	
                9.01

              	 	
                Plan
                  Administration

              	21	 
	
                9.02

              	 	
                Plan
                  Expenses 

              	 21	 
	
                9.03

              	 	
                Effect
                  on Other Benefits

              	 21	 
	
                9.04

              	 	
                No
                  Guarantee of Employment

              	22	 
	
                9.05

              	 	
                Disclaimer
                  of Liability

              	22	 
	
                9.06

              	 	
                Severability

              	 22	 
	
                9.07

              	 	
                Successors

              	22	 
	
                9.08

              	 	
                Governing
                  Law

              	22	 
	
                9.09

              	 	
                Construction

              	23	 
	
                9.10

              	 	
                Taxes

              	23	 
	
                9.11

              	 	
                Non-Assignability 

              	 23	 
	
                9.12

              	 	
                Claims
                  Procedure

              	 23	 
	 	 	 	 	 
	ARTICLE
                SIX 	 	
                SECTION
                  409A TRANSITION RELIEF

              	25	 
	
                 10.01

              	 	
                Priority
                  over Other Provisions

              	25	 
	
                 10.02

              	 	
                Cancellation
                  of Deferrals and Termination of Participation

              	25	 
	
                 10.03

              	 	
                Change
                  in Payment Elections or Conditions on or Before 

              	
              	 
	
                 

              	
                 

              	
                 
                  December 31, 2006 

              	25	 
	 	 	 	 	 
	 Exhibit
                A 	 	
                Examples
                  of Calculations for the Company Matching
                  Contribution 

              	 	 
	 Appendix
                A	 	
                Document
                  History 

              	 	 

      

    

    

     

    
       

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    ARTICLE
      ONE

    

    DEFINITIONS

    

    As
      used
      herein, the following words and phrases have the following respective meanings
      unless the context clearly indicates otherwise.

    

         Active
      Participant: A Participant who defers part of his or her Compensation for a
      Plan Year (or part thereof) pursuant to an election to defer.

     

    
      Associate:Any
        person who is classified as an associate and employed by an Employer if the
        relationship between the Employer and such person constitutes the legal
        relationship of employer and employee.

    Beneficiary:
      The person or persons designated by the Participant on a beneficiary form
      required by the Company for this purpose to receive benefits payable under
      the
      Plan because of the Participant's death.

    

    Code:
      The Internal Revenue Code
      of 1986, as amended from time to time.

    

    Company:
      On and after January
      27, 2002, J. C. Penney Corporation, Inc., a Delaware corporation. The term
      “Company” will also include any successor employer, if the successor employer
      expressly agrees in writing as of the effective date of succession to continue
      the Plan.

    

    Company
      Account: A phantom
      account established in accordance with Article Three to which Mirror Company
      Matching, Mirror Retirement Account and Mirror Discretionary contributions
      plus
      earnings are credited.

    

    Compensation:
      The total cash
      remuneration payable to an Associate for a Plan Year by his or her Employer,
      that qualifies as wages as the term wages is defined in Code section 3401 (a),
      determined without regard to any reduction for workers' compensation and state
      disability insurance reimbursements, and all other compensation payments for
      which his or her Employer is required to furnish the Associate a written
      statement under Code sections 6041(d), 6051(a)(3) and 6052, reduced by any
      extraordinary items of special pay.

    

    In
      addition, Compensation includes any contributions made by the Associate's
      Employer on behalf of the Associate pursuant to a deferral election under any
      employee benefit plan containing a cash or deferred arrangement under Section
      401(k) of the Code, and any amounts that would have been received as cash but
      for an election to receive benefits under a cafeteria plan meeting the
      requirements of Section 125 of the Code.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Compensation
      also includes eligible cash incentive payments in the year paid to the
      Associate, and amounts deferred by the Active Participant pursuant to Section
      2.05 of the Plan.

    

    Compensation
      for a Plan Year shall be determined without regard to the limitations on annual
      compensation under Section 401(a)(17) of the Code and without regard to
      deferrals to this Plan.

    

    An
      Associate who is in the service of the armed forces of the United States during
      any period in which his or her reemployment rights are guaranteed by law will
      be
      considered to have received the same rate of Compensation during his or her
      absence that he or she was receiving immediately prior to his or her absence,
      provided he or she returns to employment with an Employer within the time such
      rights are guaranteed.

    

    Eligible
      Associate: An Associate
      who has satisfied the eligibility requirements of the Plan for a Plan Year
      in
      accordance with Section 2.02.

    

    Employer:
      The Company and any
      subsidiary company or affiliate of the Company that is a Participating Employer
      as defined in Article I of the Savings Plan.

    

    ERISA:
      The Employee Retirement Security Act of 1974, as amended from time to
      time.

    

    Exchange
      Act: The Securities Exchange Act of 1934, as amended from time to
      time.

    

    Human
      Resources and Compensation
      Committee: The Human Resources and Compensation Committee of the Board of
      Directors of the Parent Company.

    

    Human
      Resources Committee: The
      Human Resources Committee of the Company.

    

    Mirror
      Company Matching
      Contributions: The phantom amounts deemed to be contributed by the Company
      for each Plan Year as determined under Section 3.04.

    

    Mirror
      Discretionary
      Contributions: The phantom amounts deemed to be contributed by the Company
      for each Plan Year as determined under Section 3.06.

    

    

    Mirror
      Investment Funds: Phantom
      funds established as book reserve entries in the books and records of the
      Company to which a Participant's deferral amounts under the Plan are credited
      based on the investment elections of the Participant. The
      investment returns of such funds shall be assumed to match the returns of the
      same investment funds available to participants under the Savings
      Plan.

    
      
        2

      

      
        
        

        
          

        

      

      
        
        

      

    

    Mirror
      Retirement Account
      Contributions: The phantom amounts deemed to be contributed by the Company
      for each Plan Year as determined under Section 3.05.

    

    

    Parent
      Company: J. C. Penney Company, Inc., a Delaware corporation, and any
      successor corporation.

    

    Participant:
      An Eligible
      Associate who participates in the Plan in accordance with Article Two, and
      who
      has not yet received a distribution of the entire amount of his or her vested
      benefits under the Plan.

    

    Personal
      Account: A phantom
      account established in accordance with Article Three to which a Participant's
      deferral amounts plus earnings are credited.

    

    Plan:
      The J.C. Penney Corporation Inc. Mirror Savings Plan, as amended from time
      to
      time.

    

    Plan
      Year: Each calendar year.

    

    Savings
      Plan: Prior to January
      27, 2002, the J. C. Penney Company, Inc. Savings, Profit-Sharing and Stock
      Ownership Plan, as amended from time to time, and on and after January 27,
      2002,
      the J. C. Penney Corporation, Inc. Savings, Profit-Sharing and Stock Ownership
      Plan, as amended from time to time.

    

    Separation
      from Service: The
      termination of employment of an Eligible Associate or a Participant because
      of
      retirement, resignation, discharge, disability or death. An
      Eligible Associate or Participant who transfers from one Employer to another
      Employer without a break in employment shall not be deemed to have a Separation
      from Service.

    

    Valuation
      Date: With respect to
      all Mirror Investment Funds, each day of a calendar year on which the New York
      Stock Exchange is open.

    

    With
      respect to transactions or distributions initiated by a Participant or
      Beneficiary, (a) the date of receipt by the plan administrator of the request
      if
      it is received prior to the close of the New York Stock Exchange, or (b) the
      next trading day if the request is received after the close of the New York
      Stock Exchange.

    

    With
      respect to distributions not initiated by a Participant, the date the
      distribution is processed.

    
      
        3

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      TWO

    

    ELIGIBILITY
      AND PARTICIPATION

    

    2.01
       Eligibility Determined for Each Plan Year

    

    The
      eligibility of each Associate to participate in the Plan as an Active
      Participant is determined for each Plan Year in accordance with Section 2.02
      below. Eligibility for, or participation in, the Plan for a Plan Year does
      not
      give an Associate the right to defer part of his or her Compensation under
      the
      Plan for any other Plan Year.

    

    2.02
       Eligible Associate

    

    An
      Associate shall be eligible to participate in the Plan as an Active Participant
      for a Plan Year if the Associate for the preceding Plan Year had:

    

    (a) Satisfied
      the eligibility
      requirements to make deferrals to the Savings Plan; and

    

    (b)
      Earnings in excess of $100,000 (as adjusted in accordance with Section 414(q)(1)
      of the Code) 

    

    
      	 	
              (1)

            	
              If
                a current Associate, such earnings will be based on his actual
                Compensation through October 31 of such year plus his or her projected
                earnings from November 1 through December 31 of such year determined
                by
                using his or her base salary (as defined below) in effect on October
                31 of
                such year.

            

    

    

    
      	 	
              (2)

            	
              If
                an Associate was not an Associate in the preceding Plan
                Year, he or she shall be eligible to participate in the year of hire
                or
                rehire if in addition to meeting the requirements of Section 2.02(a)
                above, he or she is expected to have projected earnings of at least
                an
                amount in excess of $100,000 (as adjusted in accordance with Section
                414(q)(1) of the Code) in the current Plan Year based on his Base
                Salary.
                

            

    

    

    Base
      salary shall mean the aggregate amount of the base pay rate (before any
      deductions of contributions or deferrals), commissions and amounts under the
      J.C. Penney Corporation, Inc. Management Incentive Compensation Plan due and
      payable to an Eligible Associate in the applicable Plan Year designated by
      his
      or her Employer as the Eligible Associate's monthly pay as reflected on the
      Employer's personnel records including any such amounts otherwise due and
      payable with respect to which his or her election to defer applies.

    

    

    

    
      
        4

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.03
       Participation

    

    An
      Eligible Associate for a Plan Year shall participate in the Plan for that Plan
      Year as an Active Participant by making a timely election to defer in accordance
      with Section 2.04 below. An Eligible Associate who fails to satisfy the
      requirements of Section 2.04 below shall not be allowed to make an election
      to
      defer and shall not be an Active Participant for the applicable Plan
      Year.

    

    A
      Participant who is not an Active Participant for a Plan Year shall continue
      to
      participate in the Plan in all respects except that such Participant shall
      not
      have the right to defer part of his or her Compensation under the Plan for
      that
      Plan Year, and shall not be entitled to a Mirror Company
      Matching Contribution or a Mirror Discretionary Contribution (as determined
      under Sections 3.04 or 3.06, respectively) for that Plan Year. A Participant
      hired on or after January 1, 2007, shall be entitled to receive a Mirror
      Retirement Account Contribution (as determined under 3.05) regardless of whether
      he or she is an Active Participant.

    

    2.04  Election
      to Defer

    

    All
      elections to defer for a Plan Year must be made in a manner approved by the
      plan
      administrator. An Eligible Associate for a Plan Year may elect to defer a
      percentage (as described in Section 2.05 below) of his or her Compensation
      for
      such Plan Year by filing an election which must be received by the plan
      administrator by December 31 of the preceding Plan Year. A newly Eligible
      Associate must file his or her election with the plan administrator within
      30
      days of his or her first date of eligibility for participation in the Mirror
      Plan. An Active Participant cannot change or terminate his or her election
      to
      defer during a Plan Year for that Plan Year except to the extent allowed under
      the hardship provisions of Section 7.05. However, an Eligible Associate may
      change his or her election to defer for a subsequent Plan Year with the plan
      administrator by December 31 of the preceding Plan Year.

    

    An
      election to defer also shall terminate:

    

    
      	 	 	
              (a)

            	
              at
                the end of the Plan Year;

            

    

    

    
      	 	 	
              (b)

            	
              if
                the Eligible Associate or Participant has a Separation from Service
                with
                an Employer, or

            

    

    

    (c)
 if
      the Plan is terminated,
      or

    

    
      	 	 	
              (d)
                

            	
              upon
                a Change of Control that occurs before the date that payment of
                Compensation would have been made if not
                deferred.

            

    

    

    2.05  Deferral
      Amounts

    

    An
      Active
      Participant for a Plan Year may defer 

    
      
        5

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (a)
      up to
      14% of his Compensation in that Plan Year up to the earnings dollar limit,
      and,

    

    (b)
      up to
      75% of his Compensation in that Plan Year that exceeds the earnings dollar
      limit. 

    

    All
      deferral amounts shall be in whole percentages and made by payroll deduction.
      The earnings dollar limit of an Active Participant for a Plan Year shall be
      $225,000, as adjusted for cost of living increases in accordance with Section
      401(a)(17) of the Code. 

    

    2.06
       Investment Elections

    

    A
      Participant shall complete an election, in the manner determined by the plan
      administrator, requesting that all of his or her future deferral amounts (in
      whole percentages) be applied to the purchase for him or her, as of the earliest
      practicable Valuation Date after such amounts are deferred, of units in his
      or
      her Personal Accounts within any one or more of the Mirror
      Investment Funds in each case at a price equal to the value of such units as
      of
      such Valuation Date.

    

    Such
      election initially must be made prior to the commencement of his or her
      participation in the Plan and may be changed at any time during the Plan Year.
      Each such election shall be effective as soon as administratively feasible
      following receipt by the plan administrator or its delegate of the Participant's
      election.

    

    In
      the
      event that no timely election by the Participant is on file with the plan
      administrator, such Participant shall be deemed to have elected that all
      deferral amounts shall be applied to the purchase for him or her of units in
      the
      Personal Account within the Mirror Investment Fund that is the Interest Income
      Fund.

    
      
        6

      

      
        
        

        
          

        

      

       

    

    ARTICLE
      THREE

    

    BENEFITS

    3.01
       Establishment of Accounts

    

    A
      Personal Account and a Company Account within each Mirror Investment
      Fund shall be established for each Participant in the Plan
      as if assets were invested in a trust. All amounts credited to the Personal
      Accounts and Company Accounts of a Participant shall at all times be held in
      the
      Company's general funds as part of the Company's general assets, unless a trust
      is established pursuant to Section 7.08.

    

    The
      value, including gains and losses, of such accounts and funds shall be
      determined by the plan administrator in the same manner that the value is
      determined under the Savings Plan. As of each Valuation Date, the net asset
      value of a unit shall equal the net asset value of a unit as determined under
      the Savings Plan.

    

    3.02
       Personal Accounts

    

    All
      amounts deferred by an Active Participant pursuant to Article Two shall be
      credited to his or her Personal Accounts within his or her Mirror Investment
      Funds specified in his or her investment election.

    

    3.03 Company
      Accounts

    

    All
      Company matching contributions shall be credited to the Company Account of
      each
      Active Participant at each pay period. All Mirror Retirement Account
      Contributions and Mirror Discretionary Contributions shall be credited to each
      Active Participant’s Company Account within 2 1⁄2 months of the Plan Year
      end.

    

    A
      Mirror
      Company Matching Contribution, a Mirror Retirement Account Contribution and
      a
      Mirror Discretionary Contribution (as determined under Sections 3.04, 3.05
      and
      3.06 below, respectively) shall be deemed to be invested in his or her Company
      Account within the Mirror Investment Funds in accordance with the Active
      Participant’s Investment election for his or her Personal Accounts under Section
      2.06 of this Plan. In the event an Active Participant does not make an
      investment election, the Active Participant will be deemed to have elected
      the
      Mirror Investment Fund that is the Interest Income Fund.

    

    Any
      amount of Company matching
      contributions credited to the Participant's Company account under the Savings
      Plan and subsequently cancelled so that said plan could satisfy the actual
      contribution percentage test (as described in the Savings Plan) shall be
      credited to his or her Company Account within the Mirror Investment Fund that
      is
      according to the Participant’s investment election in the year
      paid.

    
      
        7

      

      
        
          

        

      

       

    

    All
      amounts credited to the Company Accounts of a Participant shall be subject
      to
      the vesting provisions of Article Five.

    

    
      	 	
              3.04

            	
              Mirror
                Company Matching Contribution

            

    

    

    For
      each
      Active Participant hired or rehired on or after January 1, 2007, who has
      completed one year of employment and 1,000 hours of service, the Company will
      credit to the Mirror Company Matching Contribution account a matching
      contribution for each Active Participant in an amount equal to (i) 50% (or
      such
      other percent as may be determined from time to time by the Human Resources
      and
      Compensation Committee) of the Active Participant's deferral contribution to
      the
      Plan for each payroll period that does not exceed 6% of the Active Participant's
      Compensation for the payroll period reduced by (ii) the maximum matching
      contribution the Active Participant could have received under the Savings Plan.
      Each Active Participant's matching contribution will be calculated in the same
      manner as in the examples attached to the Plan as Exhibit A.  

    

    3.05 Mirror
      Retirement Account
      Contributions

    

    For
      each
      Participant hired or rehired on or after January 1, 2007, who has completed
      one
      year of employment and 1,000 hours of service and with Compensation in excess
      of
      the earnings dollar limit, the Company shall contribute an amount to the Mirror
      Plan equal to the difference between the Active Participant’s Compensation and
      the earnings dollar limit multiplied by 2%. 

    

    An
      Active
      Participant must be in the active employ of an Employer on December 31 of the
      Plan Year to receive credit for a Mirror Retirement Account Contribution for
      that Plan Year; provided, however, that an Active Participant who had a
      Separation from Service before December 31 of said year shall receive credit
      for
      one-twelfth of the Mirror Retirement Account contribution for each month or
      part
      of a month employed during the Plan Year if he or she terminated:

    

    
      	 	
              (a)

            	
              At
                or after age 55 with 15 years of
                service

            

    

    
      	 	
              (b)

            	
              At
                or after age 65 

            

    

    
      	 	
              (c)

            	
              Due
                to disability

            

    

    
      	 	
              (d)

            	
              Due
                to death

            

    

    
      	 	
              (e)

            	
              Due
                to Company-approved reduction in force or unit
                closing

            

    

    

    An
      Associate shall not have a right or claim to any of the amounts contributed
      as a
      Mirror Retirement Account Contribution if the Associate is summarily discharged,
      as defined by the Company (including resignation in lieu thereof), unless the
      Benefits Administration Committee, in its sole discretion, determines that
      such
      Associate shall be eligible for such benefits notwithstanding such summary
      discharge.

     

    
      
        8

      

      
        
        

        
          

        

      

       

    

    3.06 Mirror
      Discretionary
      Contribution

    

    Pursuant
      to Section 3.03 of the Savings Plan, a Discretionary Contribution shall be
      credited for each Active Participant to the Company Account in the Mirror Plan
      in accordance with the calculated deferral percentage of the Active Participant
      and in a manner deemed appropriate by the Human Resources and Compensation
      Committee. 

    

    An
      Active
      Participant must be in the active employ of an Employer on December 31 of the
      Plan Year to receive credit for a Mirror Discretionary Contribution for that
      Plan Year; provided, however, that an Active Participant who had a Separation
      from Service before December 31 of said year shall receive credit for
      one-twelfth of the Mirror Discretionary Contribution for each month employed
      during the Plan Year if he or she terminated:

    

    
      	 	
              (a)

            	
              At
                or after age 55 with 15 years of
                service

            

    

    
      	 	
              (b)

            	
              At
                or after Age 65 

            

    

    
      	 	
              (c)

            	
              Due
                to disability

            

    

    
      	 	
              (d)

            	
              Due
                to death

            

    

    
      	 	
              (e)

            	
              Due
                to a Company-approved reduction in force or unit
                closing

            

    

    

    An
      Associate shall not have a right or claim to any of the amounts contributed
      as a
      Discretionary Contribution if the Associate is summarily discharged, as defined
      by the Company (including resignation in lieu thereof), unless the Benefits
      Administration Committee, in its sole discretion, determines that such Associate
      shall be eligible for such benefits notwithstanding such summary
      discharge.

     

    
      
        9

      

      
        
        

        
          

        

      

      
        
        

      

    

    ARTICLE
      FOUR

    

    TRANSFERS

    

    4.01  Personal
      Accounts

    

    A
      Participant may elect, once in each calendar day of the Plan Year, to transfer
      an amount (in whole percentages) equal to the value of all or part of his or
      her
      units in his or her Personal Accounts within any one or more of the Mirror
      Investment Funds to another one or more of his or her Personal Accounts within
      the Mirror Investment Funds. The value of such units shall be determined as
      of
      the Valuation Date. A transfer is effective only if made in the manner
      determined by the plan administrator.

    

    4.02  Company
      Accounts

    

    A
      Participant may elect, once in each calendar day of the Plan Year, to transfer
      an amount (in whole percentages) equal to the value of all or part of his or
      her
      units in his or her Company Accounts within any one or more of the Mirror
      Investment Funds to another one or more of his or her Company Accounts within
      the Mirror Investment Funds. The value of such units shall be determined as
      of
      the Valuation Date. A transfer is effective only if made in the manner
      determined by the plan administrator.

    

    Notwithstanding
      any other provision of the Plan, a Participant who wishes to make transfers
      from
      both his or her Personal Accounts and Company Accounts during the same day,
      must
      do so as part of the same transaction.

    
      
        10

      

      
        
        

        
          

        

      

       

    

    ARTICLE
      FIVE

    

    VESTING

    5.01
       Personal Accounts

    

    A
      Participant shall be 100% vested in the value of his or her Personal Accounts
      within his or her Mirror Investment Funds at all times without regard to whether
      he or she is a Participant in the Plan for any future Plan Year.

    

    
      	 	
              5.02

            	
              Company
                Accounts

            

    

    

    This
      Section 5.02 applies to Mirror Company Matching Contributions described in
      Section 3.04, Mirror Retirement Account Contributions described in 3.05; and
      Mirror Discretionary Contributions described in Section 3.06. A Participant
      shall be 100% vested in the value of his or her Company Accounts within his
      or
      her Mirror Investment Funds upon completion of three full years of service,
      and
      no vested interest prior to that time, for amounts credited for Plan Years
      beginning on or after January 1, 2007. 

    For
      amounts credited as Mirror Company Matching Contributions for Plan Years before
      January 1, 2007, such amounts will vest in the same vesting percentage
      attributable to the value of his or her Company accounts under the Savings
      Plan
      based on his or her full years of service (as defined in the Savings Plan)
      in
      accordance with the following table:

    

    Full
      years of service         Vested
      Percentage

    

    Less
      than 1                  0%

    1                        20%

    2                        40%

    3                        60%

    4                        80%

    5
      or more                  100%

    

    5.03
       Forfeitures

    

    A
      Participant who is less than 100% vested in the value of his or her Company
      Accounts as of his or her Separation from Service shall forfeit the non-vested
      value of his or her Company Accounts. In the event the Participant subsequently
      is re-employed by an Employer within five years, the amount forfeited (without
      earnings) hereunder shall be restored to his or her Company Accounts in the
      same
      manner as the amount, if any, forfeited by his or her Savings Plan Company
      Accounts would be restored by purchasing units in accordance with the
      Participant’s investment election in effect at the time of his or her Separation
      from Service using the current market value as of the date of
      employment.

     

    
      
        11

      

      
        
          

        

      

       

    

    ARTICLE
      SIX

    

    TYPE
      OF
      PLAN

    

    6.01
       Top Hat Plan

    

    The
      Plan
      is intended to be a "pension plan" as defined in ERISA and is maintained by
      the
      Company on an unfunded basis primarily for the purpose of providing deferred
      compensation to a select group of management or highly compensated employees.
      As
      such, the Plan is intended to be construed so as not to provide income to any
      Participant or Beneficiary for purposes of the Internal Revenue Code prior
      to
      actual receipt of benefit payments under the Plan.

    

    In
      the
      event that it should subsequently be determined by statute or by regulation
      or
      ruling that the Plan is not "a plan which is unfunded and is maintained
      primarily for the purpose of providing deferred compensation for a select group
      of management or highly compensated employees" within the meaning of sections
      201(2), 301(a)(3), 401 (a)(1), and 4021(b)(6) of ERISA and section 2520.104-24
      of Chapter 29 of the Code of Federal Regulations, participation in the Plan
      shall be restricted by the plan administrator to the extent necessary to assure
      that it will be such a plan within the meaning of such sections.

    

    Notwithstanding
      any other provision of the Plan, if the benefits of a Participant become taxable
      prior to distribution from the Plan, such amounts shall be distributed as soon
      as practicable to the affected Participant.

    

    6.02
       No Funding

    

    Plan
      benefits shall be payable solely from the general assets of the Company. The
      Company shall not be required to, but may at its discretion, segregate or
      physically set aside any funds or assets attributable to Plan benefits. The
      Company shall retain title to and beneficial ownership of all assets of the
      Company, including any assets which may be used to pay Plan benefits. The cost
      of the Plan shall be expensed and a book reserve shall be maintained on the
      Company's financial statements.

    

    No
      Participant or Beneficiary shall be deemed to have, pursuant to the Plan, any
      legal or equitable interest in any specific assets of the Company. To the extent
      that any Participant or Beneficiary acquires any right to receive Plan benefits,
      such right shall arise merely as a result of a contractual obligation and shall
      be no greater than, nor have any preference or priority over, the rights of
      any
      general unsecured creditor of the Company.

     

     

    
      
        12

      

      
        
        

        
          

        

      

       

    

     

    

    ARTICLE
      SEVEN

    

    DISTRIBUTIONS

    

    7.01 Normal
      Form of Payment

    

    The
      normal form of payment of benefits under the Plan shall be 5 substantially
      equal
      annual installments payable in accordance with Section 7.02 below.

    

    7.02 Separation
      from Service

    

    A
      Participant who has a Separation from Service for a reason other than death
      shall be entitled to receive the vested benefits in his or her Personal Accounts
      and Company Accounts in 5 substantially equal annual installments.

    

    The
      first
      annual installment shall be paid in January following the year in which occurs
      his or her Separation from Service. Each annual installment thereafter shall
      be
      paid in January of each year. Payment dates shall be determined by the plan
      administrator.

    

    Notwithstanding
      the foregoing, if the present value of the Participant’s vested benefits does
      not exceed $5,000, such benefits shall be distributed to the Participant in
      a
      single sum payment in January following the year in which occurs the later
      of
      (a) his or her Separation from Service or (b) the date of receipt by the plan
      administrator of the Participant’s notice of employment termination. Such
      present value shall be determined as of the date of receipt by the plan
      administrator of the Participant’s notice of employment termination; provided,
      however, that if the Participant had a Separation from Service before January
      1,
      2000, such present value shall be determined as of December 31, 1999. The
      payment date shall be determined by the plan administrator.

    

    7.03 Death

    

    The
      Beneficiary of a Participant who (1) has a Separation from Service because
      of
      death, or (2) dies after his or her Separation from Service but before receiving
      all of his or her vested Plan benefits shall be entitled to receive the
      remaining annual installments to which the Participant was entitled as of the
      date of death. The first annual installment payable to the Beneficiary shall
      be
      paid in January following the Participant's date of death, or, if later, after
      satisfactory proof of death is received by the plan administrator. Each annual
      installment thereafter shall be paid in January of each year. Payment dates
      shall be determined by the plan administrator.

    

    Notwithstanding
      the foregoing, if the present value of the Participant’s vested benefits does
      not exceed $5,000, such benefits shall be distributed to the Beneficiary of
      the
      Participant in a single sum payment in January following the Participant’s date
      of

    
      
        13

      

      
        
        

        
          

        

      

       

    

    death,
      or, if later, after satisfactory proof of death is received by the plan
      administrator. The payment date shall be determined by the plan
      administrator.

    

    A
      single-sum distribution shall be paid to the estate of the Participant if as
      of
      the date of death (1) no valid beneficiary designation by the Participant is
      on
      file with the plan administrator, (2) the Beneficiary has predeceased the
      Participant, or (3) the Beneficiary has died within 30 days after the
      Participant’s date of death.

    

    A
      single-sum distribution shall be paid to the estate of the Beneficiary if the
      Beneficiary dies before receiving all benefits to which he or she was entitled
      under the Plan.

    

    7.04
       Alternate Form of Payment

    

    A
      Participant entitled to receive benefits under Section 7.02 above may make
      an
      irrevocable election to receive (1) not more than 15 substantially equal annual
      installments, or (2) a single-sum distribution. The election must be made prior
      to the Participant's Separation from Service in a manner authorized by the
      plan
      administrator. If no election has been made by the Participant, benefits shall
      be paid in the normal form of payment in accordance with Section 7.02
      above.

    

    The
      first
      annual installment or single-sum distribution shall be paid in January following
      the year in which occurs his or her Separation from Service; provided, however,
      that the first annual installment or single-sum distribution shall not be paid
      until the January following the expiration of at least one calendar year after
      the year in which the Participant's election is made. Each annual installment
      thereafter shall be paid in January of each year.

    

    A
      Participant also may make an irrevocable election to defer payment of the first
      installment or single-sum distribution to January of a later year provided
      the
      election is made prior to the Participant's Separation
      from Service in a manner authorized by the plan administrator. If no election
      has been made by the Participant, benefits shall commence in accordance with
      Section 7.02 or Section 7.04 above, whichever is applicable.

    

    A
      Participant who elects both to change the normal form of payment and to defer
      payment must make the elections at the same time.

    

    7.05
       Hardship Distribution

    

    A
      Participant or Beneficiary entitled to vested benefits under the Plan may
      request a single-sum distribution to satisfy a severe financial hardship
      resulting from an unforeseen event or emergency (as defined below) beyond his
      control. The distribution shall be limited to the amount necessary to satisfy
      the severe financial hardship (including any applicable federal, state or local
      taxes attributable to such distribution),

    
      
        14

      

      
        
        

        
          

        

      

       

    

    and
      shall
      not exceed the current value of vested benefits payable to or on behalf of
      the
      Participant or Beneficiary.

    

    An
      unforeseen event or emergency may include, but is not limited to, a sudden
      and
      unexpected illness or accident of the Participant or Beneficiary or his or
      her
      dependent, loss of his or her property due to casualty, or
      other similar extraordinary and unforeseeable circumstances arising as the
      result of events beyond his or her control, but shall not include the purchase
      of his or her home or the college expenses of his or her child.

    

    The
      determination of the existence of a severe financial hardship and the approval
      of a hardship distribution shall be made by the Chief Human Resources and
      Administration Officer, (or his successor by title or position) or his delegate
      except as provided below. Approval shall be given only if, taking into account
      all of the facts and circumstances, continued deferral of benefits or adherence
      to the Plan's payment schedule would result in a severe financial hardship
      to
      the Participant or Beneficiary. Approval shall not be granted if such hardship
      is or may be relieved through insurance, by liquidation of his or her assets
      (to
      the extent such liquidation would not itself cause severe financial hardship),
      or by terminating his or her election to defer.

    

    With
      respect to a Participant who is a member of the Executive Board of the Company
      or a Participant who is subject to Section 16(b) of the Exchange Act, the
      determination of the existence of a severe financial hardship and the approval
      of the hardship distribution shall be made by the Human Resources and
      Compensation Committee.

    

    In
      the
      case of a Participant or Beneficiary who receives a partial hardship
      distribution while receiving benefit payments, the regular payment schedule
      of
      the Participant or Beneficiary shall continue following such
      distribution.

    

    
      	 	
              7.06

            	
              Fund-Specific
                Installments or Hardship
                Distributions

            

    

    

    The
      payment to a Participant or Beneficiary of installments or a hardship
      distribution shall reduce the value of his or her accounts in his or her Mirror
      Investment Fund(s) as designated by the Participant or Beneficiary. In the
      event
      the Participant or Beneficiary fails to designate the Mirror Investment Funds
      from which payment is to be made, the value of his or her Mirror Investment
      Funds shall be reduced on a pro-rata basis.

    

    7.07 Form
      of Payments

    

    Payment
      of all benefits from the Plan shall be made only by check. No payments of
      Company stock shall be permitted.

     

    
      
        15

      

      
        
        

        
          

        

      

       

    

    7.08 Change
      of Control

    

    At
      the time of commencement of
      participation in the Plan, a Participant may make an irrevocable election to
      have his or her Plan benefits paid in a single-sum immediately upon a Change
      of
      Control (as hereafter defined). If the Participant makes such an election as
      described above, his or her vested Plan benefits shall be paid in a single-sum
      upon a Change of Control.

    

    If
      the Participant does not make such
      an election, then, upon a Change of Control, assets of the Parent Company in
      an
      amount sufficient to pay benefits then due under the Plan shall immediately
      be
      transferred to a grantor trust to be established by the Parent Company for
      the
      purpose of paying benefits hereunder, and the Personal Account and Company
      Account shall thereafter be paid to the Participant from such trust in
      accordance with the terms of the Plan; provided that at the time of such Change
      of Control, the Participant may make an irrevocable election to have his or
      her
      Plan benefits paid in a single-sum immediately, in which event the Participant’s
      benefits shall be reduced by 10% as a penalty for early withdrawal, and the
      Participant shall receive a single-sum payment of only 90% of his or her
      benefits otherwise payable under the Plan. On each anniversary date of the
      date
      of a Change of Control, the Parent Company shall transfer to the grantor trust
      an amount necessary to pay all benefits accrued under the plan during the
      preceding twelve months.

    

    For
      purposes of this Section 7.08, a
      Change of Control shall be deemed to have occurred if the event set forth in
      any
      one of the following paragraphs shall have occurred:

    

    (a) any
      Person is or becomes the Beneficial Owner, directly or indirectly, of securities
      of the Parent Company (not including in the securities beneficially owned by
      such Person any securities acquired directly from the Parent Company or its
      Affiliates) representing 50% or more of the combined voting power of the Parent
      Company’s then outstanding securities; or

    

    (b) during
      any period of two
      consecutive calendar years, the following individuals cease for any reason
      to
      constitute a majority of the number of directors then serving as directors
      of
      the Parent Company: individuals, who on July 14, 1999 constitute the Board
      of
      Directors of the Parent Company and any new director (other than a director
      whose initial assumption of office is in connection with the settlement of
      an
      actual or threatened election contest, including but not limited to a consent
      solicitation, relating to the election of directors of the Parent Company)
      whose
      appointment or election by the Board of Directors of the Parent Company or
      nomination for election by the Parent Company’s stockholders was approved or
      recommended by a vote of at least two-thirds of the directors then still in
      office who either were directors on July 14, 1999 or whose appointment, election
      or nomination for election was previously so approved or recommended;
      or

    
      
        16

      

      
        
        

        
          

        

      

       

    

    (c) there
      is consummated a merger
      or consolidation of the Parent Company or any direct or indirect subsidiary
      of
      the Parent Company with any other corporation of entity, other than

    

    
      	 	
              (i)

            	
              a
                merger or consolidation which would result in the voting securities
                of the
                Parent Company outstanding immediately prior to such merger or
                consolidation continuing to represent (either by remaining outstanding
                or
                by being converted into voting securities of the surviving entity
                or any
                Parent thereof), in combination with the ownership of any trustee
                or other
                fiduciary holding securities under an employee benefit plan of the
                Parent
                Company or any subsidiary of the Parent Company, at least 50% of
                the
                combined voting power of the securities of the Parent Company, such
                surviving entity or any Parent thereof outstanding immediately after
                such
                merger or consolidation, or

            

    

    

    
      	 	
              (ii)

            	
              a
                merger or consolidation effected solely to implement a recapitalization
                of
                the Parent Company (or similar transaction) in which no Person is
                or
                becomes the Beneficial Owner, directly or indirectly, of securities
                of the
                Parent Company (not including in the securities beneficially owned
                by such
                Person any securities acquired directly from the Parent Company or
                its
                Affiliates) representing 50% or more of the combined voting power
                of the
                Parent Company’s then outstanding securities;
                or

            

    

    

    (d) the
      stockholders of the Parent
      Company approve a plan of complete liquidation or dissolution of the Parent
      Company, or there is consummated a sale or disposition by the Parent Company
      or
      any of its subsidiaries of any assets which individually or as part of a series
      of related transactions constitute all or substantially all of the Parent
      Company’s consolidated assets, other than any such sale or disposition to an
      entity at least 50% of the combined voting power of the voting securities of
      which are owned by stockholders of the Parent Company in substantially the
      same
      proportions as their ownership of the voting securities of the Parent Company
      immediately prior to such sale or disposition; or

    

    (e) the
      execution of a binding agreement that if consummated would result in a Change
      of
      Control of a type specified in subparagraphs (a) or (c) above (an “Acquisition
      Agreement”) or of a binding agreement for the sale of disposition of assets
      that, if consummated, would result in a Change of Control of a type specified
      in
      subparagraph (d) above (an “Asset Sale Agreement”) or the adoption by the Board
      of Directors if the Parent Company of a plan of complete liquidation or
      dissolution of the Parent Company that, if consummated, would result in a Change
      of Control of a type specified in subparagraph (d) above (a “Plan of
      Liquidation”), provided, however, that a Change of Control of the type specified
      in this subparagraph (e) shall not be deemed to exist or have occurred as a
      result of the execution of such Acquisition Agreement or Asset Sale Agreement,
      or the adoption of such a Plan of Liquidation, from and after the Abandonment
      Date. As used in this subparagraph (e), the term “Abandonment Date” shall mean
      the date on which

    
      
        17

      

      
        
        

        
          

        

      

       

    

    (i) an
      Acquisition Agreement, Asset Sale Agreement or Plan of Liquidation is terminated
      (pursuant to its terms or otherwise) without having been consummated,

    

    
      	 	
              (ii)

            	
              the
                parties to an Acquisition Agreement or Asset Sale
                Agreement abandon the transactions contemplated
                thereby,

            

    

    

    (iii) the
      Parent Company abandons a Plan of Liquidation, or

    

    
      	 	
              (iv)

            	
              a
                court or regulatory body having competent jurisdiction enjoins or
                issues a
                cease and desist or stop order with respect to or otherwise prevents
                the
                consummation of, or a regulatory body notifies the Parent Company
                that it
                will not approve an Acquisition Agreement, Asset Sale Agreement or
                Plan of
                Liquidation or the transactions contemplated thereby and such injunction,
                order or notice has become final and not subject to appeal;
                or

            

    

    

    (f) the
      Board of Directors of the Parent Company adopts a resolution to the effect
      that,
      for purposes of this Plan, a Change of Control has occurred.

    

    Notwithstanding
      the foregoing, a Change of Control shall not be deemed to have occurred by
      virtue of the consummation of any transaction or series of integrated
      transactions immediately following which the record holders of the common stock
      of the Parent Company immediately prior to such transaction or series of
      transactions continue to have substantially the same proportionate ownership
      in
      an entity (i) which owns all or substantially all of the assets of the Parent
      Company immediately following such transaction or series of transactions, (ii)
      which is intended to reflect or track the value or performance of a particular
      division, business segment or subsidiary of the Parent Company, or (iii) which
      is an affiliated company, subsidiary, or spin-off entity owned by the
      stockholders of the Parent Company in substantially the same proportions as
      their ownership of stock of the Parent Company on the date of such
      spin-off.

    

    As
      used
      in connection with the foregoing definition of Change of Control, “Affiliate”
shall have the meaning set forth in Rule 12b-2 promulgated under Section 12
      of
      the Exchange Act; “Beneficial Owner” shall have the meaning set forth in Rule
      13d-3 under the Exchange Act; “Exchange Act” shall mean the Securities Exchange
      Act of 1934, as amended from time to time; “Parent” shall mean any entity that
      becomes the Beneficial Owner of at least 50% of the voting power of the
      outstanding voting securities of the Parent Company or of an entity that
      survives any merger or consolidation of the Parent Company or any direct or
      indirect subsidiary of the Parent Company; and ‘Person” shall have the meaning
      given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections
      13(d) and 14(d) thereof, except that such term shall not include (i) the Parent
      Company or any of its subsidiaries, (ii) a trustee or other fiduciary holding
      securities under an employee benefit plan of the Parent Company or any of its
      Affiliates, (iii) an underwriter temporarily holding securities pursuant to
      an
      offering of such securities, or (iv) a corporation or entity owned, directly
      or
      indirectly, by the

    
      
        18

      

      
        
        

        
          

        

      

       

    

    stockholders
      of the Parent Company in substantially the same proportions as their ownership
      of stock of the Parent Company.

    

    7.09 Reemployed
      Participants

    

    If
      the
      Participant is reemployed, his or her scheduled payments under Section 7.02
      or
      Section 7.04 shall cease and his or her election, if any, under Section 7.04
      shall be void. The Participant may make a new election under Section 7.04 prior
      to his or her subsequent Separation from Service that shall apply to any unpaid
      benefits and to any additional benefits payable to or on behalf of the
      Participant because of a subsequent Separation from Service.

    

    If
      no new
      election is made by the Participant, benefits shall be paid in the normal form
      of payment in accordance with Section 7.02 above.

    
      
        19

      

      
        
        

        
          

        

      

       

    

    ARTICLE
      EIGHT

    

    AMENDMENT
      AND TERMINATION

    

    8.01 Plan
      Amendment

    

    The
      Human
      Resources and Compensation Committee may amend the Plan at any time and from
      time to time, without prior notice to any Participant or Beneficiary; provided,
      however, that the Human Resources Committee also may make amendments that relate
      primarily to the administration of the Plan, are applied in a uniform and
      consistent manner to all Participants, and are reported to the Human Resources
      and Compensation Committee.

    

    8.02 Plan
      Termination

    

    The
      Board
      of Directors of the Parent Company may terminate or discontinue the Plan at
      any
      time. If the Plan is terminated, it shall be on such terms and conditions as
      the
      Board of Directors of the Parent Company shall deem appropriate.

    

    

    8.03 Automatic
      Plan Termination

    

    This
      Plan
      is expressly conditioned on the continued deferral of income tax on amounts
      deferred by a Participant under the Plan until such amounts are actually
      distributed to the Participant. If, as a result of an adverse determination
      by
      the Internal Revenue Service or a change in the tax laws or applicable income
      tax regulations, amounts deferred by Participants under the Plan become subject
      to income tax prior to the actual distribution of such amounts, the Plan and
      each election to defer hereunder shall automatically terminate as of the
      effective date of such change in the law without any formal action by the Board
      of Directors to terminate the Plan.

    
      
        20

      

      
        
        

        
          

        

      

       

    

    ARTICLE
      NINE

    

    MISCELLANEOUS

    

    9.01 Plan
      Administration

    

    The
      Plan
      shall be administered under the direction of the Human Resources and
      Compensation Committee. Except as otherwise provided below, the Benefits
      Administration Committee shall be considered the plan administrator for purposes
      of ERISA.

    

    The
      Human
      Resources and Compensation Committee may delegate all or some of the
      responsibility for the administration of the Plan to the Human Resources
      Committee or the Benefits Administration Committee in which case such Committee
      shall assume such delegated power and authority in administering the Plan to
      that extent; provided, however, that in no event shall the Human Resources
      Committee or the Benefits Administration Committee have any power or authority
      with respect to matters involving a Participant who is a member of the Executive
      Board of the Company or a Participant who is subject to Section 16(b) of the
      Exchange Act.

    

    The
      plan
      administrator has the authority and discretion to construe and interpret the
      Plan. As part of this authority, the plan administrator has the discretion
      to
      resolve inconsistencies or ambiguities in the language of the Plan, to supply
      omissions from or correct deficiencies in the language of the Plan, and to
      adopt
      rules for the administration of the Plan which are not inconsistent with the
      terms of the Plan. The plan administrator also has the authority and discretion
      to resolve all questions of fact relating to any claim for benefits as to any
      matter for which the plan administrator has responsibility. All determinations
      of the plan administrator are final and binding on all parties.

    

    Each
      person considered to be a fiduciary with respect to the Plan shall have only
      those powers and responsibilities as are specifically given that person under
      this Plan. It is intended that each such person shall be responsible for the
      proper exercise of his or her own powers and responsibilities, and shall not
      be
      responsible for any act or failure to act of any other person considered to
      be a
      fiduciary or any act or failure to act of any person considered to be a
      non-fiduciary.

    

    9.02 Plan
      Expenses

    

    All
      Plan
      administration expenses incurred by the Company or the plan administrator shall
      be paid by the Company.

    

    9.03 Effect
      on Other Benefits

    

    Participation
      in the Plan shall not reduce any welfare benefits or retirement benefits offered
      by the Company, except that the amounts deferred under the Plan
      and

    
      
        21

      

      
        
        

        
          

        

      

       

    

    any
      Plan
      benefits shall not be considered "Compensation" for purposes of the Savings
      Plan.

    

    9.04 No
      Guarantee of Employment

    

    Neither
      participation in the Plan nor any action taken under the Plan shall confer
      upon
      a Participant any right to continue in the employ of an Employer or affect
      the
      right of such Employer to terminate the Participant's employment at any time.
      

    

    9.05 Disclaimer
      of Liability

    

    The
      Employer shall be solely responsible for the payment of Plan benefits hereunder.
      The members of the Human Resources and Compensation Committee and the Human
      Resources Committee, and the officers, directors, employees, or agents of the
      Company or any other Employer, shall not be liable for such benefits. Unless
      otherwise required by law, no such person shall be liable for any action or
      failure to act, except where such act or omission constitutes gross negligence
      or willful or intentional misconduct.

    

    9.06 Severability

    

    If
      any
      provision of the Plan shall be held invalid or unenforceable, such invalidity
      or
      unenforceability shall apply only to that provision, and shall not affect or
      render invalid or unenforceable any other provision of the Plan. In such event,
      the Plan shall be administered and construed as if such invalid or unenforceable
      provision were not contained herein. If the application of any Plan provision
      to
      any Participant or Beneficiary shall be held invalid or unenforceable, the
      application of such provision to any other Participant or Beneficiary shall
      not
      in any manner be affected thereby.

    

    9.07 Successors

    

    The
      Plan
      and any election to defer shall be binding on (i) the Company and its successors
      and assigns, (ii) any Employer and its successors and assigns, (iii) each
      Participant, (iv) each Beneficiary, and (v) the heirs, distributees, and legal
      representatives of each Participant and Beneficiary.

    

    9.08 Governing
      Law

    

    Except
      to
      the extent that the Plan may be subject to the provisions of ERISA, the Plan
      shall be construed and enforced according to the laws of the State of Texas
      without giving effect to the conflict of laws principles thereof. In the event
      limitations imposed by ERISA on legal actions do not apply, the laws of the
      State of Texas shall apply, and a cause of action under the Plan must be brought
      no later than four years after the date the action accrues.

     

    
      
        22

      

      
        
        

        
          

        

      

       

    

    9.09 Construction

    

    As
      used
      herein, the masculine shall include the feminine, the singular shall include
      the
      plural, and vice versa, unless the context clearly indicates otherwise. Titles
      and headings herein are for convenience only and shall not be considered in
      construing the Plan. The words "hereof," "hereunder", and other similar
      compounds of the word "here" shall mean and refer to the entire Plan and not
      to
      any particular provision or Section.

    

    9.10 Taxes

    

    Any
      taxes
      imposed on Plan benefits shall be the sole responsibility of the Participant
      or
      Beneficiary. The Company shall deduct from Plan benefits any federal taxes,
      state taxes, local taxes, or other taxes required to be withheld. The Company
      shall, unless the plan administrator elects otherwise, withhold such taxes
      at
      the applicable flat rate percentage. The Company shall also deduct from any
      payment of Compensation, including any cash incentive payments, on the date
      such
      payment would have been made if not deferred under this Plan Social Security
      and
      Medicare taxes or other taxes required to be withheld on such date.

    

    9.11 Non-Assignabilty

    

    Unless
      otherwise required by law, and prior to distribution to a Participant or
      Beneficiary, Plan benefits shall not be subject to assignment, transfer, sale,
      pledge, encumbrance, alienation, or charge by such Participant or Beneficiary,
      and any attempt to do so shall be void. Plan benefits shall not be liable for
      or
      subject to garnishment, attachment, execution, or levy, or liable for or subject
      to the debts, contracts, or liabilities of the Participant or Beneficiary;
      provided, however, that the Company may offset from the payment of any Plan
      benefits to a Participant or Beneficiary amounts owed by the Participant to
      an
      Employer.

    

    9.12 Claims
      Procedure

    

    If
      a
      Participant or Beneficiary ("claimant") does not receive the benefits which
      the
      claimant believes he or she is entitled to receive under the Plan, the claimant
      may file a claim for benefits with the Chief Human Resources and Administration
      Officer (or his or her delegate). All claims must be made in writing and must
      be
      signed by the claimant. If the claimant does not furnish sufficient information
      to determine the validity of the claim, the Chief Human Resources and
      Administration Officer (or his or her delegate) will indicate to the claimant
      any additional information which is required.

    

    Each
      claim will be approved or disapproved by the Chief Human Resources and
      Administration Officer (or his or her delegate) within 90 days following receipt
      of the information necessary to process the claim. In the event the Chief Human
      Resources and Administration Officer (or his or her delegate) denies a claim
      for
      benefits in whole or in part, the Chief Human Resources and Administration
      Officer (or his or her

    
      
        23

      

      
        
          

        

      

       

    

    delegate)
      will notify the claimant in writing of the denial of the claim. Such notice
      by
      the Chief Human Resources and Administration Officer (or his or her delegate)
      will also set forth, in a manner calculated to be understood by the claimant,
      the specific reasons for such denial, the specific Plan provisions on which
      the
      denial is based, a description of any additional material or information
      necessary to perfect the claim with an explanation of why such material or
      information is necessary, and an explanation of the Plan's claim review
      procedure as set forth below. If no action is taken by the Chief Human Resources
      and Administration Officer (or his or her delegate) on or a claim within 90
      days, the claim will be deemed to be denied for purposes of the review procedure
      below.

    

    A
      claimant may appeal a denial of his or her claim by requesting a review of
      the
      decision by the plan administrator. An appeal must be submitted in writing
      within six months after the denial and must (i) request a review of the claim
      for benefits under the Plan, (ii) set forth all the grounds upon which the
      claimant's request for review is based and any facts in support thereof, and
      (iii) set forth any issues or comments which the claimant deems pertinent to
      the
      appeal.

    

    The
      plan
      administrator will make a full and fair review of each appeal and any written
      materials submitted in connection with the appeal. The plan administrator will
      act upon each appeal within 60 days after receipt thereof, unless special
      circumstances require an extension of the time for processing, in which case
      a
      decision will be rendered as soon as possible but not later than 120 days after
      the appeal is received. The claimant will be given the opportunity to review
      pertinent documents or materials upon submission of a written request to the
      plan administrator, provided the plan administrator finds the requested
      documents or materials pertinent to the appeal. On the basis of its review,
      the
      plan administrator will make an independent determination of the claimant's
      eligibility for benefits under the Plan.

    

    The
      decision of the plan administrator on any claim for benefits will be final
      and
      conclusive upon all parties thereto. In the event the plan administrator denies
      an appeal in whole or in part, the plan administrator will give written notice
      of the decision to the claimant, which notice will set forth, in a manner
      calculated to be understood by the claimant, the specific reasons for such
      denial and specific reference to the pertinent Plan provisions on which the
      decision was based. 

    
      
        24

      

      
        
        

        
          

        

      

       

    

    

    ARTICLE
      TEN

    

    SECTION
      409A TRANSITION RELIEF

    

    10.01  Priority
      over Other Provisions 

    

    The
      provisions set forth in this Article will supersede any conflicting provisions
      of the Plan.

    

    10.02 Cancellation
      of Deferrals and Termination of Participation 

    

    Any
      amount subject to Code section 409A paid to a Participant during 2005 that
      would
      otherwise violate the requirements of Code section 409A(a)(2), (3), or (4)
      will
      be treated as a distribution in termination of the Participant’s participation
      in the Plan or a cancellation of the Participant's deferral election. The
      amounts subject to termination or cancellation will be includible in the
      Participant’s income in the calendar year 2005. This paragraph applies to (i)
      payments in 2005 to a specified employee, as that term is defined in Code
      section 409A(a)(2)(B)(i), within six months after the date of the Participant’s
      separation from service, as that term is defined by the Secretary; (ii) payments
      in 2005 pursuant to the election of an alternate form of payment under Section
      7.04; and (iii) any other payments in 2005 otherwise in violation of Code
      section 409A(a)(2), (3), or (4).

    

    10.03 Change
      in Payment Elections or Conditions on or Before December 31,
      2006 

    

    With
      respect to amounts subject to Code section 409A, a Participant may make a new
      payment election on or before December 31, 2006, as permitted by the preamble
      to
      the Proposed Regulations; and the election will not be treated as a change
      in
      the timing and form of payment under Code section 409A(a)(4) or an acceleration
      of a payment under Code section 409A(a)(3); provided, however, that a
      Participant cannot in 2006 change payment elections with respect to payments
      that the Participant would otherwise receive in 2006, or to cause payments
      to be
      made in 2006. Any election made by a Participant on or before December 31,
      2006
      (including an election made before January 1, 2005) that applies to an amount
      accrued under the Plan subject to Code section 409A will be treated as a new
      election under this paragraph unless an election in 2006 would apply to amounts
      that otherwise would be payable in 2006.

    
      
        25

      

      
        
        

        
          

        

      

       

    

    Exhibit
      A

    Examples
      of Mirror Company Matching Contribution

    

    
      	
               

            	
              Example
                One:

            	
               

            	
               

            
	
              (a)

            	
              Gross
                Compensation

            	
              250,000

            	
               

            
	
              (b)

            	
              401(A)(17)
                Compensation

            	
              220,000

            	
               

            
	
              (c)

            	
              Incentive
                Compensation

            	
              50,000

            	
               

            
	
              (d)

            	
              Mirror
                Plan Election for Compensation below 401(A)(17)

            	
              5.00%

            	
               

            
	
              (e)

            	
              Mirror
                Plan Election for Compensation above 401(A)(17)

            	
              10.00%

            	
               

            
	
              (f)

            	
              Mirror
                Plan Election for Incentive Compensation below 401(A)(17)

            	
              5.00%

            	
               

            
	
              (g)

            	
              Mirror
                Plan Election for Incentive Compensation above 401(A)(17

            	
              5.00%

            	
               

            
	
              (h)

            	
              Match
                Percentage

            	
              0.50

            	
               

            
	
               

            	 	 	
               

            
	
              Post
                2005 FORMULA

            
	
               

            	
               

            	
               

            	
               

            
	
              (i)

            	
              Mirror
                Plan calculated deferrals for compensation below 401(A)(17):
                ((b)-(c))*(d)

            	
              8,500

            	
               

            
	
              (j)

            	
              Mirror
                Plan calculated deferrals for Incentive Compensation:
                (c)*(f)

            	
              2,500

            	
               

            
	
              (k)

            	
              Mirror
                Plan calculated deferrals for compensation above 401(A)(17):
                ((a)-(b))*(e)

            	
              3,000

            	
               

            
	
              (l)

            	
              Lesser
                or Gross Compensation or 401(A)(17) Compensation minus Mirror Plan
                calculated deferrals for compensation below 401(A)(17) times 6%:
                If
                (a)<(b) then ((a)-(i)-(j))*.06, if (a)>(b) then
                (b)-(i)-(j)*.06

            	
              12,540

            	
               

            
	
              (m)

            	
              equals
                total calculated deferral amount: (i)+(j)+(k)+(l)

            	
              26,540

            	
               

            
	
              (n)

            	
              Lesser
                of calculated percentage or 6% of gross comp: If (w)/(a)<6% then
                (a)*(m)/(a), if (m)/(a)>6% then (a)*6%

            	
              15,000

            	
               

            
	
              (o)

            	
              Times
                match rate: (n)*(h)

            	
               

            	
              7,500

            
	
              (p)

            	
              LESS

            	
               

            	
               

            
	
              (q)

            	
              401(A)(17)
                Compensation minus Mirror Plan calculated deferrals for compensation
                below
                401(A)(17) times 6%: (l)

            	
              12,540

            	
               

            
	
              (r)

            	
              Times
                match rate: (q)*(h)

            	
               

            	
              6,270

            
	
              Total
                Mirror Plan contributions new formula: (o)-(r)

            	
              1,230

            

    

    

    
      
        26

      

      
        
        

        
          

        

      

       

    

    Exhibit
      A

    Examples
      of Mirror Company Matching Contribution

    
      	
               

            	
              Example
                Two:

            	
               

            	
               

            
	
              (a)

            	
              Gross
                Compensation

            	
              150,000

            	
               

            
	
              (b)

            	
              401(A)(17)
                Compensation

            	
              220,000

            	
               

            
	
              (c)

            	
              Incentive
                Compensation

            	
              20,000

            	
               

            
	
              (d)

            	
              Mirror
                Plan Election for Compensation below 401(A)(17)

            	
              3.00%

            	
               

            
	
              (e)

            	
              Mirror
                Plan Election for Compensation above 401(A)(17)

            	
              0.00%

            	
               

            
	
              (f)

            	
              Mirror
                Plan Election for Incentive Compensation below 401(A)(17)

            	
              1.00%

            	
               

            
	
              (g)

            	
              Mirror
                Plan Election for Incentive Compensation above 401(A)(17

            	
              0.00%

            	
               

            
	
              (h)

            	
              Match
                Percentage

            	
              0.50

            	
               

            
	
               

            	 	 	
               

            
	
              Post
                2005 FORMULA

            
	
               

            	
               

            	
               

            	
               

            
	
              (i)

            	
              Mirror
                Plan calculated deferrals for compensation below 401(A)(17):
                ((b)-(c))*(d)

            	
              3,900

            	
               

            
	
              (j)

            	
              Mirror
                Plan calculated deferrals for Incentive Compensation:
                (c)*(f)

            	
              200

            	
               

            
	
              (k)

            	
              Mirror
                Plan calculated deferrals for compensation above 401(A)(17):
                ((a)-(b))*(e)

            	
              0

            	
               

            
	
              (l)

            	
              Lesser
                or Gross Compensation or 401(A)(17) Compensation minus Mirror Plan
                calculated deferrals for compensation below 401(A)(17) times 6%:
                If
                (a)<(b) then ((a)-(i)-(j))*.06, if (a)>(b) then
                (b)-(i)-(j)*.06

            	
              8,754

            	
               

            
	
              (m)

            	
              equals
                total calculated deferral amount: (i)+(j)+(k)+(l)

            	
              12,854

            	
               

            
	
              (n)

            	
              Lesser
                of calculated percentage or 6% of gross comp: If (w)/(a)<6% then
                (a)*(m)/(a), if (m)/(a)>6% then (a)*6%

            	
              9,000

            	
               

            
	
              (o)

            	
              Times
                match rate: (n)*(h)

            	
               

            	
              4,500

            
	
              (p)

            	
              LESS

            	
               

            	
               

            
	
              (q)

            	
              401(A)(17)
                Compensation minus Mirror Plan calculated deferrals for compensation
                below
                401(A)(17) times 6%: (l)

            	
              8,754

            	
               

            
	
              (r)

            	
              Times
                match rate: (q)*(h)

            	
               

            	
              4,377

            
	
              Total
                Mirror Plan contributions new formula: (o)-(r)

            	
              123

            

    

    
      
        27

      

      
        
        

        
          

        

      

       

    

    Exhibit
      A

    Examples
      of Mirror Company Matching Contribution

    
      	
               

            	
              Example
                Three:

            	
               

            	
               

            
	
              (a)

            	
              Gross
                Compensation

            	
              2,000,000

            	
               

            
	
              (b)

            	
              401(A)(17)
                Compensation

            	
              220,000

            	
               

            
	
              (c)

            	
              Incentive
                Compensation

            	
              300,000

            	
               

            
	
              (d)

            	
              Mirror
                Plan Election for Compensation below 401(A)(17)

            	
              3.00%

            	
               

            
	
              (e)

            	
              Mirror
                Plan Election for Compensation above 401(A)(17)

            	
              5.00%

            	
               

            
	
              (f)

            	
              Mirror
                Plan Election for Incentive Compensation below 401(A)(17)

            	
              0.00%

            	
               

            
	
              (g)

            	
              Mirror
                Plan Election for Incentive Compensation above 401(A)(17

            	
              10.00%

            	
               

            
	
              (h)

            	
              Match
                Percentage

            	
              0.50

            	
               

            
	
               

            	 	 	
               

            
	
              Post
                2005 FORMULA

            
	
               

            	
               

            	
               

            	
               

            
	
              (i)

            	
              Mirror
                Plan calculated deferrals for compensation below 401(A)(17):
                ((a)-(c))*(e)

            	
              6,600

            	
               

            
	
              (j)

            	
              Mirror
                Plan calculated deferrals for Incentive Compensation:
                (c)*(g)

            	
              30,000

            	
               

            
	
              (k)

            	
              Mirror
                Plan calculated deferrals for compensation above 401(A)(17):
                ((a)-(b)-(c))*(e)

            	
              74,000

            	
               

            
	
              (l)

            	
              Lesser
                of Gross Compensation or 401(A)(17) Compensation minus Mirror Plan
                calculated deferrals for compensation below 401(A)(17) times 6%:
                If
                (a)<(b) then ((a)-(i))*.06, if (a)>(b) then
                (b)-(i)*.06

            	
              12,804

            	
               

            
	
              (m)

            	
              equals
                total calculated deferral amount: (i)+(j)+(k)+(l)

            	
              123,404

            	
               

            
	
              (n)

            	
              Lesser
                of calculated percentage or 6% of gross comp: If (w)/(a)<6% then
                (a)*(m)/(a), if (m)/(a)>6% then (a)*6%

            	
              120,000

            	
               

            
	
              (o)

            	
              Times
                match rate: (n)*(h)

            	
               

            	
              60,000

            
	
              (p)

            	
              LESS

            	
               

            	
               

            
	
              (q)

            	
              401(A)(17)
                Compensation minus Mirror Plan calculated deferrals for compensation
                below
                401(A)(17) times 6%: (l)

            	
              12,804

            	
               

            
	
              (r)

            	
              Times
                match rate: (q)*(h)

            	
               

            	
              6,402

            
	
              Total
                Mirror Plan contributions new formula: (o)-(r)

            	
              53,598

            
	 	 	 	 
	
              Note:
                If a participant hits the compensation limit before his incentive
                compensation is paid (as in the above example), the formula is changed
                to
                use the appropriate percentage election and so that the deferrals
                on the
                Incentive Compensation do not reduce the compensation used in the
                Savings
                Plan.

            

    

    
      
        28

      

      
        
        

        
          

        

      

       

    

    Exhibit
      A

    Examples
      of Mirror Company Matching Contribution

    
      	
               

            	
              Example
                Four:

            	
               

            	
               

            
	
              (a)

            	
              Gross
                Compensation

            	
              450,000

            	
               

            
	
              (b)

            	
              401(A)(17)
                Compensation

            	
              220,000

            	
               

            
	
              (c)

            	
              Incentive
                Compensation

            	
              50,000

            	
               

            
	
              (d)

            	
              Mirror
                Plan Election for Compensation below 401(A)(17)

            	
              6.00%

            	
               

            
	
              (e)

            	
              Mirror
                Plan Election for Compensation above 401(A)(17)

            	
              6.00%

            	
               

            
	
              (f)

            	
              Mirror
                Plan Election for Incentive Compensation below 401(A)(17)

            	
              6.00%

            	
               

            
	
              (g)

            	
              Mirror
                Plan Election for Incentive Compensation above 401(A)(17

            	
              0.00%

            	
               

            
	
              (h)

            	
              Match
                Percentage

            	
              0.50

            	
               

            
	
               

            	 	 	
               

            
	
              Post
                2005 FORMULA

            
	
               

            	
               

            	
               

            	
               

            
	
              (i)

            	
              Mirror
                Plan calculated deferrals for compensation below 401(A)(17):
                ((b)-(c))*(d)

            	
              10,200

            	
               

            
	
              (j)

            	
              Mirror
                Plan calculated deferrals for Incentive Compensation:
                (c)*(f)

            	
              3,000

            	
               

            
	
              (k)

            	
              Mirror
                Plan calculated deferrals for compensation above 401(A)(17):
                ((a)-(b))*(e)

            	
              13,800

            	
               

            
	
              (l)

            	
              Lesser
                or Gross Compensation or 401(A)(17) Compensation minus Mirror Plan
                calculated deferrals for compensation below 401(A)(17) times 6%:
                If
                (a)<(b) then ((a)-(i)-(j))*.06, if (a)>(b) then
                (b)-(i)-(j)*.06

            	
              12,408

            	
               

            
	
              (m)

            	
              equals
                total calculated deferral amount: (i)+(j)+(k)+(l)

            	
              39,408

            	
               

            
	
              (n)

            	
              Lesser
                of calculated percentage or 6% of gross comp: If (w)/(a)<6% then
                (a)*(m)/(a), if (m)/(a)>6% then (a)*6%

            	
              27,000

            	
               

            
	
              (o)

            	
              Times
                match rate: (n)*(h)

            	
               

            	
              13,500

            
	
              (p)

            	
              LESS

            	
               

            	
               

            
	
              (q)

            	
              401(A)(17)
                Compensation minus Mirror Plan calculated deferrals for compensation
                below
                401(A)(17) times 6%: (l)

            	
              12,408

            	
               

            
	
              (r)

            	
              Times
                match rate: (q)*(h)

            	
               

            	
              6,204

            
	
              Total
                Mirror Plan contributions new formula: (o)-(r)

            	
              7,296

            

    

    

    
      
        29

      

      
        
        

        
          

        

      

       

    

    Exhibit
      A

    Examples
      of Mirror Company Matching Contribution

    
      	
               

            	
              Example
                Five:

            	
               

            	
               

            
	
              (a)

            	
              Gross
                Compensation

            	
              150,000

            	
               

            
	
              (b)

            	
              401(A)(17)
                Compensation

            	
              220,000

            	
               

            
	
              (c)

            	
              Incentive
                Compensation

            	
              50,000

            	
               

            
	
              (d)

            	
              Mirror
                Plan Election for Compensation below 401(A)(17)

            	
              1.00%

            	
               

            
	
              (e)

            	
              Mirror
                Plan Election for Compensation above 401(A)(17)

            	
              0.00%

            	
               

            
	
              (f)

            	
              Mirror
                Plan Election for Incentive Compensation below 401(A)(17)

            	
              1.00%

            	
               

            
	
              (g)

            	
              Mirror
                Plan Election for Incentive Compensation above 401(A)(17

            	
              0.00%

            	
               

            
	
              (h)

            	
              Match
                Percentage

            	
              0.50

            	
               

            
	
               

            	 	 	
               

            
	
              Post
                2005 FORMULA

            
	
               

            	
               

            	
               

            	
               

            
	
              (i)

            	
              Mirror
                Plan calculated deferrals for compensation below 401(A)(17):
                ((b)-(c))*(d)

            	
              1,000

            	
               

            
	
              (j)

            	
              Mirror
                Plan calculated deferrals for Incentive Compensation:
                (c)*(f)

            	
              500

            	
               

            
	
              (k)

            	
              Mirror
                Plan calculated deferrals for compensation above 401(A)(17):
                ((a)-(b))*(e)

            	
              0

            	
               

            
	
              (l)

            	
              Lesser
                or Gross Compensation or 401(A)(17) Compensation minus Mirror Plan
                calculated deferrals for compensation below 401(A)(17) times 6%:
                If
                (a)<(b) then ((a)-(i)-(j))*.06, if (a)>(b) then
                (b)-(i)-(j)*.06

            	
              8,910

            	
               

            
	
              (m)

            	
              equals
                total calculated deferral amount: (i)+(j)+(k)+(l)

            	
              10,410

            	
               

            
	
              (n)

            	
              Lesser
                of calculated percentage or 6% of gross comp: If (w)/(a)<6% then
                (a)*(m)/(a), if (m)/(a)>6% then (a)*6%

            	
              9,000

            	
               

            
	
              (o)

            	
              Times
                match rate: (n)*(h)

            	
               

            	
              4,500

            
	
              (p)

            	
              LESS

            	
               

            	
               

            
	
              (q)

            	
              401(A)(17)
                Compensation minus Mirror Plan calculated deferrals for compensation
                below
                401(A)(17) times 6%: (l)

            	
              8,910

            	
               

            
	
              (r)

            	
              Times
                match rate: (q)*(h)

            	
               

            	
              4,455

            
	
              Total
                Mirror Plan contributions new formula: (o)-(r)

            	
              45

            

    

    
      
        30

      

      
        
        

        
          

        

      

       

    

    Exhibit
      A

    Examples
      of Mirror Company Matching Contribution

    
      	
               

            	
              Example
                Six:

            	
               

            	
               

            
	
              (a)

            	
              Gross
                Compensation

            	
              150,000

            	
               

            
	
              (b)

            	
              401(A)(17)
                Compensation

            	
              220,000

            	
               

            
	
              (c)

            	
              Incentive
                Compensation

            	
              50,000

            	
               

            
	
              (d)

            	
              Mirror
                Plan Election for Compensation below 401(A)(17)

            	
              4.00%

            	
               

            
	
              (e)

            	
              Mirror
                Plan Election for Compensation above 401(A)(17)

            	
              0.00%

            	
               

            
	
              (f)

            	
              Mirror
                Plan Election for Incentive Compensation below 401(A)(17)

            	
              0.00%

            	
               

            
	
              (g)

            	
              Mirror
                Plan Election for Incentive Compensation above 401(A)(17

            	
              0.00%

            	
               

            
	
              (h)

            	
              Match
                Percentage

            	
              0.50

            	
               

            
	
               

            	 	 	
               

            
	
              Post
                2005 FORMULA

            
	
               

            	
               

            	
               

            	
               

            
	
              (i)

            	
              Mirror
                Plan calculated deferrals for compensation below 401(A)(17):
                ((b)-(c))*(d)

            	
              4,000

            	
               

            
	
              (j)

            	
              Mirror
                Plan calculated deferrals for Incentive Compensation:
                (c)*(f)

            	
              0

            	
               

            
	
              (k)

            	
              Mirror
                Plan calculated deferrals for compensation above 401(A)(17):
                ((a)-(b))*(e)

            	
              0

            	
               

            
	
              (l)

            	
              Lesser
                or Gross Compensation or 401(A)(17) Compensation minus Mirror Plan
                calculated deferrals for compensation below 401(A)(17) times 6%:
                If
                (a)<(b) then ((a)-(i)-(j))*.06, if (a)>(b) then
                (b)-(i)-(j)*.06

            	
              8,760

            	
               

            
	
              (m)

            	
              equals
                total calculated deferral amount: (i)+(j)+(k)+(l)

            	
              12,760

            	
               

            
	
              (n)

            	
              Lesser
                of calculated percentage or 6% of gross comp: If (w)/(a)<6% then
                (a)*(m)/(a), if (m)/(a)>6% then (a)*6%

            	
              9,000

            	
               

            
	
              (o)

            	
              Times
                match rate: (n)*(h)

            	
               

            	
              4,500

            
	
              (p)

            	
              LESS

            	
               

            	
               

            
	
              (q)

            	
              401(A)(17)
                Compensation minus Mirror Plan calculated deferrals for compensation
                below
                401(A)(17) times 6%: (l)

            	
              8,760

            	
               

            
	
              (r)

            	
              Times
                match rate: (q)*(h)

            	
               

            	
              4,380

            
	
              Total
                Mirror Plan contributions new formula: (o)-(r)

            	
              120

            

    

    

    
      
        31

      

      
        
        

        
          

        

      

       

    

    Exhibit
      A

    Examples
      of Mirror Company Matching Contribution

    
      	
               

            	
              Example
                Seven:

            	
               

            	
               

            
	
              (a)

            	
              Gross
                Compensation

            	
              150,000

            	
               

            
	
              (b)

            	
              401(A)(17)
                Compensation

            	
              220,000

            	
               

            
	
              (c)

            	
              Incentive
                Compensation

            	
              50,000

            	
               

            
	
              (d)

            	
              Mirror
                Plan Election for Compensation below 401(A)(17)

            	
              2.00%

            	
               

            
	
              (e)

            	
              Mirror
                Plan Election for Compensation above 401(A)(17)

            	
              0.00%

            	
               

            
	
              (f)

            	
              Mirror
                Plan Election for Incentive Compensation below 401(A)(17)

            	
              6.00%

            	
               

            
	
              (g)

            	
              Mirror
                Plan Election for Incentive Compensation above 401(A)(17

            	
              0.00%

            	
               

            
	
              (h)

            	
              Match
                Percentage

            	
              0.50

            	
               

            
	
               

            	 	 	
               

            
	
              Post
                2005 FORMULA

            
	
               

            	
               

            	
               

            	
               

            
	
              (i)

            	
              Mirror
                Plan calculated deferrals for compensation below 401(A)(17):
                ((b)-(c))*(d)

            	
              2,000

            	
               

            
	
              (j)

            	
              Mirror
                Plan calculated deferrals for Incentive Compensation:
                (c)*(f)

            	
              3,000

            	
               

            
	
              (k)

            	
              Mirror
                Plan calculated deferrals for compensation above 401(A)(17):
                ((a)-(b))*(e)

            	
              0

            	
               

            
	
              (l)

            	
              Lesser
                or Gross Compensation or 401(A)(17) Compensation minus Mirror Plan
                calculated deferrals for compensation below 401(A)(17) times 6%:
                If
                (a)<(b) then ((a)-(i)-(j))*.06, if (a)>(b) then
                (b)-(i)-(j)*.06

            	
              8,700

            	
               

            
	
              (m)

            	
              equals
                total calculated deferral amount: (i)+(j)+(k)+(l)

            	
              13,700

            	
               

            
	
              (n)

            	
              Lesser
                of calculated percentage or 6% of gross comp: If (w)/(a)<6% then
                (a)*(m)/(a), if (m)/(a)>6% then (a)*6%

            	
              9,000

            	
               

            
	
              (o)

            	
              Times
                match rate: (n)*(h)

            	
               

            	
              4,500

            
	
              (p)

            	
              LESS

            	
               

            	
               

            
	
              (q)

            	
              401(A)(17)
                Compensation minus Mirror Plan calculated deferrals for compensation
                below
                401(A)(17) times 6%: (l)

            	
              8,700

            	
               

            
	
              (r)

            	
              Times
                match rate: (q)*(h)

            	
               

            	
              4,350

            
	
              Total
                Mirror Plan contributions new formula: (o)-(r)

            	
              150

            

    

    

    
      
        32

      

      
        
        

        
          

        

      

       

    

    Exhibit
      A

    Examples
      of Mirror Company Matching Contribution

    
      	
               

            	
              Example
                Eight:

            	
               

            	
               

            
	
              (a)

            	
              Gross
                Compensation

            	
              200,000

            	
               

            
	
              (b)

            	
              401(A)(17)
                Compensation

            	
              220,000

            	
               

            
	
              (c)

            	
              Incentive
                Compensation

            	
              50,000

            	
               

            
	
              (d)

            	
              Mirror
                Plan Election for Compensation below 401(A)(17)

            	
              1.00%

            	
               

            
	
              (e)

            	
              Mirror
                Plan Election for Compensation above 401(A)(17)

            	
              0.00%

            	
               

            
	
              (f)

            	
              Mirror
                Plan Election for Incentive Compensation below 401(A)(17)

            	
              1.00%

            	
               

            
	
              (g)

            	
              Mirror
                Plan Election for Incentive Compensation above 401(A)(17

            	
              0.00%

            	
               

            
	
              (h)

            	
              Match
                Percentage

            	
              0.50

            	
               

            
	
               

            	 	 	
               

            
	
              Post
                2005 FORMULA

            
	
               

            	
               

            	
               

            	
               

            
	
              (i)

            	
              Mirror
                Plan calculated deferrals for compensation below 401(A)(17):
                ((b)-(c))*(d)

            	
              1,500

            	
               

            
	
              (j)

            	
              Mirror
                Plan calculated deferrals for Incentive Compensation:
                (c)*(f)

            	
              500

            	
               

            
	
              (k)

            	
              Mirror
                Plan calculated deferrals for compensation above 401(A)(17):
                ((a)-(b))*(e)

            	
              0

            	
               

            
	
              (l)

            	
              Lesser
                or Gross Compensation or 401(A)(17) Compensation minus Mirror Plan
                calculated deferrals for compensation below 401(A)(17) times 6%:
                If
                (a)<(b) then ((a)-(i)-(j))*.06, if (a)>(b) then
                (b)-(i)-(j)*.06

            	
              11,880

            	
               

            
	
              (m)

            	
              equals
                total calculated deferral amount: (i)+(j)+(k)+(l)

            	
              13,880

            	
               

            
	
              (n)

            	
              Lesser
                of calculated percentage or 6% of gross comp: If (w)/(a)<6% then
                (a)*(m)/(a), if (m)/(a)>6% then (a)*6%

            	
              12,000

            	
               

            
	
              (o)

            	
              Times
                match rate: (n)*(h)

            	
               

            	
              6,000

            
	
              (p)

            	
              LESS

            	
               

            	
               

            
	
              (q)

            	
              401(A)(17)
                Compensation minus Mirror Plan calculated deferrals for compensation
                below
                401(A)(17) times 6%: (l)

            	
              11,880

            	
               

            
	
              (r)

            	
              Times
                match rate: (q)*(h)

            	
               

            	
              5,940

            
	
              Total
                Mirror Plan contributions new formula: (o)-(r)

            	
              60

            

    

    
      
        33

      

      
        
        

        
          

        

      

       

    

    Exhibit
      A

    Examples
      of Mirror Company Matching Contribution

    
      	
               

            	
              Example
                Nine:

            	
               

            	
               

            
	
              (a)

            	
              Gross
                Compensation

            	
              450,000

            	
               

            
	
              (b)

            	
              401(A)(17)
                Compensation

            	
              220,000

            	
               

            
	
              (c)

            	
              Incentive
                Compensation

            	
              50,000

            	
               

            
	
              (d)

            	
              Mirror
                Plan Election for Compensation below 401(A)(17)

            	
              14.00%

            	
               

            
	
              (e)

            	
              Mirror
                Plan Election for Compensation above 401(A)(17)

            	
              0.00%

            	
               

            
	
              (f)

            	
              Mirror
                Plan Election for Incentive Compensation below 401(A)(17)

            	
              10.00%

            	
               

            
	
              (g)

            	
              Mirror
                Plan Election for Incentive Compensation above 401(A)(17)

            	
              0.00%

            	
               

            
	
              (h)

            	
              Match
                Percentage

            	
              0.50

            	
               

            
	
               

            	 	 	
               

            
	
              Post
                2005 FORMULA

            
	
               

            	
               

            	
               

            	
               

            
	
              (i)

            	
              Mirror
                Plan calculated deferrals for compensation below 401(A)(17):
                ((b)-(c))*(d)

            	
              23,800

            	
               

            
	
              (j)

            	
              Mirror
                Plan calculated deferrals for Incentive Compensation:
                (c)*(f)

            	
              5,000

            	
               

            
	
              (k)

            	
              Mirror
                Plan calculated deferrals for compensation above 401(A)(17):
                ((a)-(b))*(e)

            	
              0

            	
               

            
	
              (l)

            	
              Lesser
                or Gross Compensation or 401(A)(17) Compensation minus Mirror Plan
                calculated deferrals for compensation below 401(A)(17) times 6%:
                If
                (a)<(b) then ((a)-(i)-(j))*.06, if (a)>(b) then
                (b)-(i)-(j)*.06

            	
              11,472

            	
               

            
	
              (m)

            	
              equals
                total calculated deferral amount: (i)+(j)+(k)+(l)

            	
              40,272

            	
               

            
	
              (n)

            	
              Lesser
                of calculated percentage or 6% of gross comp: If (w)/(a)<6% then
                (a)*(m)/(a), if (m)/(a)>6% then (a)*6%

            	
              27,000

            	
               

            
	
              (o)

            	
              Times
                match rate: (n)*(h)

            	
               

            	
              13,500

            
	
              (p)

            	
              LESS

            	
               

            	
               

            
	
              (q)

            	
              401(A)(17)
                Compensation minus Mirror Plan calculated deferrals for compensation
                below
                401(A)(17) times 6%: (l)

            	
              11,472

            	
               

            
	
              (r)

            	
              Times
                match rate: (q)*(h)

            	
               

            	
              5,736

            
	
              Total
                Mirror Plan contributions new formula: (o)-(r)

            	
              7,764

            

    

    
      
        34

      

      
        
        

        
          

        

      

       

    

     Appendix
      A

    

      DOCUMENT
        HISTORY

      

      This
        document contains the plans adopted on July 8, 1998 by the J. C.
        Penney Company, Inc. Board of Directors effective January 1, 1999 as amended
        on
        the dates and under the authorities noted below:

      

      

      
        	
                 

                 

              	
                December
                  11, 1998

                January
                  1, 1999 

                July
                  14, 1999 

                December
                  10, 1999 

                December
                  11, 2000 

                March
                  22, 2001

              	
                Human
                  Resources Committee

                Effective
                  Date

                Board
                  of Directors

                Human
                  Resources Committee

                Human
                  Resources Committee

                Human
                  Resources Committee

                Human
                  Resources and Compensation
                  Committee

              

      

      

      
        	 	
                June
                  1, 2001

              	
                Director
                  of Human Resources

              

      

      

      
        	 	
                October
                  10, 2001

              	
                Human
                  Resources Committee

              

      

      

      
        	 	
                January,
                  27, 2002

              	
                Chief
                  HR and Admin. Officer

              

      

      

      
        	 	
                June
                  1, 2002

              	
                Director
                  of Human Resources

              

      

      

      
        	 	
                November
                  16, 2006

              	
                Human
                  Resources and Compensation
                  Committee

              

      

    

    
      	
               

               

            	
               

               

            	
               

               

               

               

              35AMENDMENT

Exhibit 10.1

AMENDMENT

This Amendment is made and entered into on November 17, 2006, by and among BROOKE CORPORATION, a Kansas corporation (hereinafter "Buyer") and KANSAS CITY LIFE INSURANCE COMPANY, a Missouri corporation (hereinafter "Seller").

RECITALS

1.Buyer and Seller entered into a Stock Purchase Agreement (hereinafter "SPA") on January 23, 2006, wherein Buyer agreed to purchase, and Seller agreed to sell, all of the issued and outstanding shares of capital stock of Generations Bank, a federal stock savings bank headquartered in Kansas City, Missouri (hereinafter "the Bank").

2.For and in consideration of the premises and mutual covenants herein and other good and valuable considerations, Buyer and Seller mutually agree to amend the SPA as set forth herein.

EXTENSION OF EXPIRATION DATE

Section 9.3(a)(iv) of the SPA provides that the SPA will terminate on or about November 22, 2006.  The parties hereto agree to extend the expiration date under Section 9.3(a)(iv) to Wednesday, January 31, 2007 at 5:00 p.m. (the "Revised Expiration Date").

REIMBURSEMENT OF INCREMENTAL COSTS

Section 4.2(c) of the SPA provides that the Bank has the right to enter into a new contract with JACK HENRY ASSOCIATES, INC. (hereinafter "JHA") for a period not to exceed five (5) years upon terms reasonably acceptable to Buyer.  At the request of and as a concession to Buyer, Seller hereby agrees that, unless Buyer and Seller agree in advance in writing, the Bank will not enter into a new contract with JHA on or before the Revised Expiration Date, and thereby forego the opportunity to lock in a more favorable fee structure for data processing services in consideration of Buyer agreeing as follows:

(a)Buyer agrees to pay to Seller at the closing of the SPA an Incremental Cost of Two Hundred Dollars ($200) per day, from and including December 1, 2006 through the date of Closing.

(b)In the event the SPA is not closed by the Revised Expiration Date, Buyer agrees to reimburse the Bank Two Hundred Dollars ($200) per day, from and including December 1, 2006 through February 28, 2007.  Buyer agrees to pay Bank within thirty (30) days after Buyer's receipt from Seller or Bank written demand for such Incremental Cost.

TERMINATION OF BENEFIT PLANS

Section 7.1(k) of the SPA provides as a closing condition that Bank shall have terminated all Benefit Plans (as defined in the SPA) and Other Benefits (as defined in the SPA) effective as of Closing. At the request of Buyer, the SPA is amended by replacing Section 7.1(k) with the following new Section 7.1(k):

"(k)Benefit Plans. Effective as of Closing, Bank shall have terminated all Benefit Plans and Other Benefits, other than any of Bank's group medical, dental, life insurance, accidental death and dismemberment and short-term disability plans."

FULL FORCE AND EFFECT

Except as specifically amended herein, the SPA shall continue in full force and effect in accordance with its original terms.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed the day and year first above written.

BUYER:

BROOKE CORPORATION

 

 

By:/s/ Robert D. Orr

Name:  Robert D. Orr

Title:  Chairman and Chief Executive Officer

SELLER:

KANSAS CITY LIFE INSURANCE COMPANY

 

 

By:/s/ Tracy W. Knapp

Name:  Tracy W. Knapp

Title:  Senior Vice President, Finance

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]