UNITED PARCEL SERVICE INC
AMENDMENT NO. 5 TO THE UPS SAVINGS PLAN
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<TYPE>EX-10.3(5)
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<DESCRIPTION>AMENDMENT NO. 5 TO THE UPS SAVINGS PLAN
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<TITLE>Amendment No. 5 to the UPS Savings Plan</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.3(5) </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="right"><FONT
FACE="Times New Roman" SIZE="2"><B>Execution Copy </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">AMENDMENT NUMBER FIVE </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">TO THE </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">UPS SAVINGS PLAN </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, United Parcel Service of America, Inc. (the &#147;Company&#148;) and its affiliated corporations maintain the UPS Savings Plan (the
&#147;Plan&#148;) as amended and restated effective January&nbsp;1, 1998; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, the Board of Directors of the Company reserved the
right in Section&nbsp;14.1 of the Plan to amend, modify or change the Plan from time to time; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, Overnite Corporation became a
wholly owned subsidiary and Overnite Transportation Company, Motor Cargo and Motor Cargo Distribution Services, Inc. became wholly owned indirect subsidiaries of United Parcel Service, Inc. on August&nbsp;5, 2005 pursuant to an agreement of merger
among United Parcel Service, Inc., Olympic Merger Sub, Inc. and Overnite Corporation dated as of May&nbsp;25, 2005 (the &#147;Merger&#148;); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">WHEREAS, as a result of the Merger, the Company desires to make Overnite Corporation, Overnite Transportation Company, Motor Cargo and Motor Cargo Distribution Services, Inc. Employer Companies in the Plan effective as of January&nbsp;1,
2006; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, also as a result of the Merger, the Company desires to merge the assets and liabilities of the Motor Cargo Profit Sharing
Plan attributable to (i)&nbsp;those participants who are employees of Motor Cargo and whose terms and conditions of employment are not governed by a collective bargaining agreement and (ii)&nbsp;terminated vested participants whose terms and
conditions of employment as of their most recent termination date were not governed by a collective bargaining agreement with and in to the Plan effective on or about February&nbsp;28, 2006; </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B></B>WHEREAS, also as a result of the Merger, the Company desires to merge the assets and liabilities of the Overnite Transportation Company Tax
Reduction Investment Plan with and into the Plan effective on or about February&nbsp;28, 2006; and <B> </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, the Company also
desires to amend the Plan to (i)&nbsp;reduce the minimum account balance required to allow terminated participants to make a rollover contribution to $1000 so that it will conform to the cash-out limitations (ii)&nbsp;clarify the service requirement
for installment distributions, (iii)&nbsp;to clarify that the portion of an account invested in the self-managed account is not available for a loan and or an in-service withdrawal and (iv)&nbsp;to add a provision for accepting contributions from
participants who were on military leave under a plan merged into this Plan. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">NOW THEREFORE, pursuant to the authority vested in the Board of Directors by Section&nbsp;14.1 of the
Plan, the UPS Savings Plan is hereby amended, as follows: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">1. By amending Section&nbsp;3.6, effective as of March&nbsp;28, 2005, to delete the last
sentence thereof and insert the following sentence at the end of such Section: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">Effective March&nbsp;28, 2005, a Participant who has
incurred a Separation from Service may contribute to the Trust in accordance with this Section&nbsp;3.6(a), provided that the Participant has not otherwise received a distribution of his or her Account pursuant to Section&nbsp;9.2 and the
Participant&#146;s aggregate balance in the Savings Plan and the QSOP exceeds one thousand dollars ($1,000.00). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">2. By amending the phrase (1)&nbsp;in the
first sentence of Section&nbsp;9.5(b), effective as of January&nbsp;1, 2003, to read as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">(1) he or she Separates from Service on or
after attaining age fifty-five (55)&nbsp;and completing at least ten (10)&nbsp;years of service (as described in Section&nbsp;1.40), taking into account any prior service credit with an employer identified in Appendix 1.38 from his or her most
recent employment date or reemployment commencement date with such employer. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">3. By amending the introductory paragraph of Section&nbsp;9.8,
Section&nbsp;9.8A and Section&nbsp;9.9 to add the following sentence at the end of such Sections effective as of January&nbsp;1, 1998: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman"
SIZE="2">Notwithstanding any contrary provisions, the portion of an Account invested in a self-managed account (as described in Section&nbsp;9.5(b)) will not be available for withdrawal under this Section. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">4. By amending the first sentence of Section&nbsp;10.1(a), effective as of January&nbsp;1, 1998, to add the following proviso to the end of such sentence: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">; provided, however, that the portion of a person&#146;s Account allocated to his or her Savings<I>PLUS</I> Transfer Account or invested in a self-managed
account (described in Section&nbsp;9.5(b)) shall not be available for hardship loans. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">5. By amending Section&nbsp;15.10, <U>USERRA</U>, effective as of
January&nbsp;1, 2006, to add the following sentence to the end thereof: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%"><FONT FACE="Times New Roman" SIZE="2">Additionally, to the extent required under Code &#167;&nbsp;414(u),
a Participant eligible to make contributions to this Plan with respect to a period of military leave from an employer that sponsored a merged plan (as listed in Appendix 1.38) and which leave occurred (all or in part) prior to the merger of such
merged plan into this Plan, and the amount of such contributions for the portion of the leave that occurred prior to the merger shall be determined under the terms of the merged Plan as in effect during the period of the applicable leave.
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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">6. By amending Appendix 1.23, effective as of January&nbsp;1, 2006, to add Overnite Corporation, Overnite Transportation
Company, Motor Cargo and Motor Cargo Distribution Services, Inc. to the list of participating employers. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">7. By amending Appendix 1.38, effective
February&nbsp;28, 2006, to add Overnite Corporation, Overnite Transportation Company, Motor Cargo and Motor Cargo Distribution Services, Inc. to the list of companies for which prior service credit will be recognized and to add Overnite
Transportation Company Tax Reduction Investment Plan and the Motor Cargo Profit Sharing Plan to the list of merged plans. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">8. By amending Appendix 14.3,
Special Provisions Relating to Mergers, Acquisitions, and other Transfers, effective as of February&nbsp;28, 2006, to add Sections 14.3.7 and 14.3.8, as follows: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Section&nbsp;14.3.7 <U>Overnite Corporation and Overnite Transportation Company</U> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(a)
<U>Overnite Plan</U>. For purposes of this Section&nbsp;14.3.7, Overnite Plan means the Overnite Transportation Company Tax Reduction Investment Plan, as in effect immediately prior to the transfer of its assets and liabilities into this Plan
effective on or about February&nbsp;28, 2006. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(b) <U>Merger</U>. The assets and liabilities of the Overnite Plan will be
merged with and into this Plan on or about February&nbsp;28, 2006. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(c) <U>Accounts</U>. An Account will be established
under this Plan to reflect the interest of each former participant in the Overnite Plan to the extent he or she does not already have an Account under this Plan. The portion of a Participant&#146;s account under the Overnite Plan attributable to his
or her &#147;salary deferrals&#148; and &#147;catch-up contributions&#148;, if any, will become part of his or her Pre-Tax Contribution Account under this Plan; the portion attributable to his or her &#147;rollover contributions&#148;, if any, will
become part of his or her Rollover Contribution Account under this Plan; and the remaining portion of a Participant&#146;s account under the Overnite Plan will become a part of his or her Merged Account under this Plan. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">(d) <U>In-Service Distribution</U>. A Participant who has a Merged Account
attributable to assets transferred from the Overnite Plan to this Plan on or about February&nbsp;28, 2006 may withdraw all or any portion of this or her entire Account balance pursuant to Section&nbsp;9.8(b) of the Plan (59 <FONT
SIZE="1"><SUP>&nbsp;1</SUP></FONT><FONT SIZE="2">/</FONT><FONT SIZE="1">2</FONT><FONT FACE="Times New Roman" SIZE="2"> Withdrawal). </FONT></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">Section&nbsp;14.3.8 <U>Motor Cargo</U> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(a) <U>Motor Cargo Plan</U>. For purposes of this Section&nbsp;14.3.8,
Motor Cargo Plan means the Motor Cargo Profit Sharing Plan, as in effect immediately prior to the transfer of its assets and liabilities into this Plan effective on or about February&nbsp;28, 2006. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(b) <U>Merger</U>. The assets and liabilities of the Motor Cargo Profit Sharing Plan
attributable to (i)&nbsp;participants who are employees as of December&nbsp;31, 2005 and whose terms and conditions of employment are not governed by a collective bargaining agreement and (ii)&nbsp;terminated vested participants whose terms and
conditions of employment as of their most recent termination date were not governed by a collective bargaining agreement, will be merged with and into this Plan effective on or about February&nbsp;28, 2006. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(c) <U>Accounts</U>. An Account will be established under this Plan to reflect the interest of each former participant who had an account
balance transferred from the Motor Cargo Plan to the extent he or she does not already have an Account under this Plan. The portion of a Participant&#146;s account under the Motor Cargo Plan attributable to his or her &#147;deferral
contributions&#148; and &#147;catch-up contributions&#148;, if any, will become part of his or her Pre-Tax Contribution Account under this Plan; the portion attributable to his or her &#147;rollover contributions&#148;, if any, will become part of
his or her Rollover Contribution Account under this Plan; and the remaining portion of a Participant&#146;s account under the Motor Cargo Plan will become a part of his or her Merged Account. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:4%;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">(d) <U>In-Service Distribution Amounts.</U> A Participant who has a Merged Account
attributable to assets transferred from the Motor Cargo Plan to this Plan on or about February&nbsp;28, 2006 may withdraw all or any portion of that Merged Account balance pursuant to Section&nbsp;9.8(b) of the Plan (59 <FONT
SIZE="1"><SUP>&nbsp;1</SUP></FONT><FONT SIZE="2">/</FONT><FONT SIZE="1">2</FONT><FONT FACE="Times New Roman" SIZE="2"> Withdrawal). Additionally, a Participant who receives an in-service hardship distribution from the Motor Cargo Plan and who would
be prevented from making contributions to the Motor Cargo Plan after December&nbsp;31, 2005 as a result of such withdrawal, will to be subject to such contribution suspension under this Plan as if it were the Motor Cargo Plan. </FONT></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">IN WITNESS WHEREOF, the undersigned certify that United Parcel Service of America, Inc. based upon action by its Board of Directors on December 20, 2005,
has caused this Amendment No.&nbsp;5 to be adopted. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">ATTEST:</FONT></TD>
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<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">UNITED PARCEL SERVICE</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="2">OF AMERICA,
INC.</FONT></P></TD></TR>
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<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;A<SMALL>LLEN</SMALL> E. H<SMALL>ILL</SMALL></FONT></TD>
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<TD VALIGN="top" STYLE="BORDER-BOTTOM:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/&nbsp;&nbsp;&nbsp;&nbsp;M<SMALL>ICHAEL</SMALL> L. E<SMALL>SKEW</SMALL></FONT></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Allen E. Hill</FONT></TD>
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<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Michael L. Eskew</FONT></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Secretary</FONT></TD>
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<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Chairman</FONT></TD></TR>
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