The Company and Union have agreed to the following enhancements to the Pension Plan. These enhancements provide employees who were hired after April 1, 1997 the same "Annuity Pay Out Options" as the employees who were employed prior to that date and eliminates the sixty-five year old age requirement for the Modified Joint and Survivor Option for all Bargaining Unit employees.

Modified Joint & Survivor Option: A modified joint and survivor annuity pays a monthly benefit to you for the rest of your life plus a benefit equal to 100% of what you received to your surviving spouse after you die. Because the benefit is spread over two lifetimes, your monthly payment amount would be less than if you chose a single life annuity. NOTE: The Modified J&S requirement of only being available if you are terminating or retiring from the company at age 65 or later will no longer apply to all FPL Bargaining employees.

Ten-Year Certain Option: On the first of the month following your 65th birthday, you will receive a reduced lifetime monthly benefit following your benefit commencement date. If you die before 120 payments have been made, the remaining monthly installments will be paid to the beneficiary you name. You are also entitled to a reduced monthly benefit beginning as early as your 55th birthday, provided you have completed at least 10 years of participating service.

Level Off Option: You receive an increased benefit upon your benefit commencement date, but no earlier than your 55th birthday. On the first of the month following your 65th birthday, your pension benefit will be decreased whether or not you have begun to receive Social Security payments. This is to ensure that your total pension benefits (estimated Social Security plus pension) are approximately equal to what you received as a pension benefit prior to your 65th birthday.

To be eligible for this method of payment, you must meet the following criteria upon termination:

• At least 55 years of age and have 10 years of participating service; or

• At least 50 years of age and have 15 years of participating service.

Cash Refund Option: You receive a reduced monthly benefit during your lifetime. Your beneficiary receives the remaining account balance if you should die before the full value of your pension is paid. This is available only if you are terminating or retiring from the company at age 65 or later.

These enhancements will become effective on January 1, 2003 and added to the Bargaining Unit Benefit Handbook that is currently in draft form and being reviewed