In addition to the medical options offered to Covered Retirees and dependents who are
not Medicare eligible, for 2018 and each subsequent plan year, the Company will establish and
offer additional medical option(s) sponsored by the Company for such retirees and their
dependents, provided that the Company and the Union have agreed on the design of such
medical option(s) no later than June 30 of the year prior to the plan year in which such medical
option(s) will be available. Each year beginning in 2017, the Company and the Union will
discuss, through the ACHC, the design of such medical option(s) for the subsequent plan year
with the goal of designing medical option(s), in which the cost of coverage is no greater than the
2016 Company Contribution Cap as defined in Section VIII.4.E.2.b(iii) of the 2012 MOU for
pre-Medicare retirees in the Health Care PPO Option for the coverage category elected ($15,447
for single coverage; $30,893 for single +1 coverage; and $38,639 for family coverage). The
ACHC will discuss the design of such option(s) beginning on or about May 1 of the year prior to
each such plan year. The contributions for such medical option(s) shall be subject to Section
VIII.4.E.2.b.(iii) of the 2012 MOU. For purposes of applying Section VIII.4.E.2.b.(iii) of the
2012 MOU in 2018 and each subsequent plan year, such option(s) shall be subject to the 2016
Company Contribution Cap for the Health Care PPO Option for the coverage category elected
($15,447 for single coverage; $30,893 for single +1 coverage; and $38,639 for family coverage).
Any such additional medical option(s) will be established and operated in accordance with IRS
guidance and applicable law.