The concerns which some of you have voiced following the Plan B conversion regarding the new Memorandum Account Earnings calculation method and the Hardship Withdrawal suspension of contribution period, have been noted and we have modified the Plan accordingly.

Participants will now be permitted to elect either the GS US$ Liquid Reserves Fund - Admin. Dist., for the calculation of earnings on their Memorandum Accounts or the default Memorandum Account Portfolio Fund currently used for that purpose 1 . The following link provides information on the monthly performance of both the GS US$ Liquid Reserves Fund – Admin. Dist. and the Memorandum Account Portfolio Fund

http://www.aub.edu.lb/hr/benefits/Documents/academics/Memo_accnt_earn_calc_method.pdf . If made, the election will apply to 100% of a Participant's Memorandum Account balance and will be effective August 1, 2010. If you do not submit an election form, your Memorandum Account will continue to be deemed invested in the Memorandum Account Portfolio Fund.

If you wish to make this election, which will become effective August 1 st , fill in the form available at the following link:

http://www.aub.edu.lb/hr/benefits/Documents/academics/election_memo_acc_earn_calc.pdf by July 30, 2010 .

Once you have completed the form, k indly submit the signed and dated form to the Benefits Office, College Hall Room 345.

Please note: The deadline for submittal of the form to make a change in your investment is July 30, 2010. The elected change will be effective August 1, 2010.

Kindly note that this mid year election period will only be offered in 2010. In the future, you will be eligible to change your earnings calculation option (with the choices being either the GS US$ Liquid Reserves Fund – Admin. Dist. or the Memorandum Account Portfolio Fund) once per year during the month of December to be effective the next January 1. The December election period will be also be offered in 2010 (so two election periods will be available in 2010, only). Changes elected during December will become effective as of January 1 st of the following year.

Another important change has been made with respect to the Hardship Withdrawal option. Previously, participants who took a Hardship Withdrawal were subject to a six month period during which they were not permitted to make contributions to the Plan. Now, participants who take a Hardship Withdrawal will be permitted to continue to make contributions to their accounts under the retirement plan. The employer contributions will also be unaffected by the Hardship Withdrawal. This change is effective immediately.

1 - The Memorandum Account Portfolio Fund is designed to be deemed invested as follows: 14% in the Vanguard Euro Government Bond Index, 26% in the Vanguard US Government Bond Index, and 60% in the Vanguard Global Stock Index (with periodic rebalancing).