Group Life, Hospitalization Insurance,

Retirement Plan and Employee Savings Plan

SECTION 1. The benefits applicable to employees under the group life, group medical (including prescription) plans in effect at this date will be continued for all employees, including those on Workers' Compensation, during the term of this Agreement.

            From December 1, 2005 through November 30, 2009, pre-Medicare eligible retirees, who retire during the term of this agreement, will pay the same amount for medical as active employees. Upon expiration of this agreement they will pay the then applicable retiree medical rate.

            Medicare eligible retirees will continue to pay the applicable retiree rate for their Medicare supplemental plan.

SECTION 2. Each employee will be insured for Forty Four Thousand Dollars ($44,000) effective, 12/1/04, with an Accidental Death and Dismemberment provision while in active employment. Effective 1/1/07, this insurance will be increased to Forty-Five Thousand Dollars ($45,000).  Effective 1/1/08, this insurance will be increased to Forty-Six Thousand Dollars ($46,000).  Each employee will be offered the opportunity to purchase either Fifteen Thousand Dollars ($15,000) or Thirty Thousand Dollars ($30,000) of additional term life insurance at a cost of thirty-three cents ($.33) per thousand per month, which will be made available during the initial open enrollment period without a qualifying physical, or for new employees, at date of hire. For work related accidental death on the job, the benefit will be triple the life insurance benefit. Employees who retire after December 1, 1988 will receive a death benefit of Ten Thousand Dollars ($10,000) at retirement. This benefit will reduce to Five Thousand Dollars ($5,000) at the rate of One Thousand Dollars ($1,000) per year for the first five (5) years of retirement. The benefit will remain at Five Thousand Dollars ($5,000) until age seventy (70), at which time it reduces to Four Thousand Dollars ($4,000). However, if during the first five (5) years of retirement the employee reaches age seventy (70), the benefit will immediately reduce to Four Thousand Dollars ($4,000) upon reaching age seventy (70).

The Company will assume the cost of medical, prescription, dental and vision care insurance coverage, relating to the individual employee and his/her eligible dependents less the following employee contributions for medical coverage:

1.         Medical:

CTCare HMO and Excellus EPO (TEN Employees)

Weekly employee contribution amounts:                           

Effective Date                      2006               2007               2008               2009

Single                                     $20.47            $22.42            $24.54            $26.88

Family                                     $52.98            $58.01            $63.52            $69.56             

2.         If elected, Vision and/or Dental:  20% employee contribution

Employees will be given the option to make contributions on a pre-tax basis.

Annually, prior to open enrollment, the Company will, at the Union's request supply the Union with documentation of the prior year's medical, dental and vision insurance experience including renewal rates and employee contributions for such insurance as derived from such information.

Effective January 1, 2003, the Company will implement a medical and dental spousal coverage plan. If a spouse works full-time (as defined by his or her employer) for a Company that offers medical and/or dental coverage and the Company shares in the cost of these coverages, the spouse must enroll in his or her employer's plans first. The employee can then enroll the spouse in CNG's plan if desired. The two plans will coordinate benefits.  If neither the employee, their spouse and other family members elect coverage under the CNG medical benefit plan, the employee will receive a One Thousand Dollar ($1,000) annual credit amortized over the employee's normal annual pay periods (Employee Medical Opt Out).

For the period December 1, 2005 through November 30, 2009, only, the Company will reimburse the premium contribution cost of single medical/dental coverage paid by any employee's spouse who receives primary medical/dental coverage from his/her employer, providing that the total premium cost to the employee does not exceed the cost to the Company to include the spouse as a dependent. The employee must present documentation satisfactory to the Company to receive reimbursement.

3.      The current Rx co-pays are $5/$15/$30 (retail drug) for up to a 30-day supply; $10/$30/$60 (mail order) for up to a 90-day supply.  Effective 1/1/07, the co-pays will be $7/$20/$35 (retail drug) for up to a 30-day supply; $14/$40/$70 (mail order) for up to a 90-day supply.

SECTION 3. The Retirement Plan (The Connecticut Natural Gas Corporation Retirement Plan), dated January 1, 1941 and as amended effective December 31, 1967, shall continue for the life of this Agreement, dated December 1, 1985 and succeeding Agreements subject to such modifications as may be mutually agreed upon by the parties hereto. Furthermore, in appointing the Retirement Committee provided under Article 12 of the Retirement Plan, the Company will appoint a member designated by the Union for each member designated and appointed by the Company.

Any employee who retires on or after December 1, 2005 and who is vested in the CNG Retirement Plan, has 10 years of service,  and who subsequently receives a Disability Retirement, shall be paid the greater of their accrued  benefit or a minimum monthly benefit of $1,750 per month.

Minimum Normal Retirement Benefit - Plan Article 5, Section 5.2(d):  In the case of an Employee who is credited with 30 years of credited service at retirement, the minimum monthly flat dollar amount of retirement benefit will be $1,750 for employees who retire on or after January 1, 2006.

Employees submitting a written notification of retirement will receive a Retirement Plan benefit calculation and will also receive appropriate documentation regarding retirement benefits.

Effective January 1, 2004 (1/1/04), the Company will implement a cash balance plan for employees hired on or after 1/1/04.

Cash Balance Plan Formula: The Company will credit the participants' cash balance account with a flat dollar amount of $3,500 per year and such credit will be applied at the end of each plan year. For plan years starting on and after January 1, 2006 the flat dollar amount will be $4,000 per year. Balances will earn interest equal to the 30-year treasury rate (or other comparable government index) not less than 4% in effect on December 31 of the prior year and credited at the end of the subsequent year. Five year vesting will apply.

SECTION 4. Effective July 1, 1988, all eligible employees covered by this Agreement may elect to participate in the Connecticut Natural Gas Corporation Union Employee Savings Plan and receive the company match as outlined below.

Years of Service                               Age                 Match

20 or more or                                    45        =         4.5%

10 or                                                 35        =          3%

Less than 10 and under                    35        =          2%.