Looking for an agreement? Search from over 1 million agreements now.

Amd#2 To Acc Key Management Deferral Plan

This is an actual contract by Arco Chemical.
Browse the agreement preview below and buy the entire agreement for $35

Sectors: Chemicals
Effective Date: January 01, 1997
Search This Document
AMENDMENT NO. 2
TO
ARCO CHEMICAL COMPANY
KEY MANAGEMENT DEFERRAL PLAN


------------------


Pursuant to resolutions adopted by the Board of Directors on October 17, 1996, the following amendment is hereby made to the ARCO Chemical Company Key Management Deferral Plan (the "Plan") effective as of January 1, 1997.


1. Article I, Section 3.1 of the Plan is amended to read as follows:


"3.1 Account means a separate bookkeeping account maintained by the Company
for each Employee and which measures and determines the amounts to be paid
to the Employee under the Plan for each component of Deferred Compensation.
Separate subaccounts will be established for separate components of
Deferred Compensation, as applicable, deferred by an Employee."


2. Article I, Section 3.10 of the Plan is amended to read as follows:


"3.10 Deferral Commitment means a promise made by an Employee to defer
compensation pursuant to Article III for which a Participation Agreement
has been submitted by the Employee to the Administrative Committee."


3. Article I, Section 3.12 of the Plan is deleted and Sections 3.13 through
3.31 are redesignated as Sections 3.12 through 3.30.


4. Article II, Section 2 of the Plan is amended to read as follows:


1


EXHIBIT 10.1


"Section 2. Basic Forms of Deferral


2.1 A Participant may elect to defer the following forms of compensation in a Participation Agreement:


(a) Base Pay Deferral. Commencing with Base Pay earned during pay periods ending on and after October 1, 1990, a Participant may elect to defer Base Pay earned during a Deferral Period, subject to any limitations, conditions or restrictions, such as minimum or maximum amounts that may be deferred, as are prescribed by the Administrative Committee in advance of the Deferral Period.


(b) Award Deferral. A Participant may elect to defer Awards to be paid by the Company during a Deferral Period, subject to any limitations, conditions or restrictions, such as minimum or maximum amounts that may be deferred, as are prescribed by the Administrative Committee in advance of the Deferral Period.


(c) ESSP Benefit Deferral. A Participant may elect to defer the ESSP Benefit earned during the Deferral Period, subject to any limitations, conditions or restrictions, such as minimum or maximum amounts that may be deferred, as are prescribed by the Administrative Committee in advance of the Deferral Period.


(d) CAP Plan Make-Up Deferral. Any amount of Base Pay that the Participant elected to defer into the CAP Plan during each Deferral Period and which was not permitted due to legal restrictions, other than the limitation on the amount of deferrals under Section 402(g) of the Code, precluding such deferrals to the CAP Plan shall be deferred under this Plan to the extent that such deferrals would have received the Matching Company Contribution under the CAP Plan. To the extent that such amounts are deferred into this Plan during the


2


Deferral Period, the Company will contribute an additional amount to this
Plan based upon the Matching Company Contribution formula then in effect
under the CAP Plan."


5. Article II, Section 4 of the Plan is amended to read as follows:


"Section 4. Limitation on Deferral


4.1 Except as otherwise permitted for accelerated Deferred
Compensation, as defined in Section 7.1(b) of this Article, Deferral
Commitments shall be subject to the following limitations:


(a) A Participant may not defer more than fifty percent (50%) of
the Participant's Base Pay, except that the limit shall be seventy-five
percent (75%) of the Participant's Base Pay payable during the first Plan
Year, which commences on the Effective Date and ends on December 31, 1990
and during the Plan Year commencing on January 1, 1991.


(b) The minimum amount that may be deferred for the Deferral Period
relating to a Deferral Commitment, shall be established by the
Administrative Committee in advance of the Deferral Period and shall be
allocable among the forms of Deferred Compensation described in Article II,
Section 2.1(a) through (c)."


6. Article III, Section 1 of the Plan is amended to read as follows:


"Section 1. Accounts


1.1 For record-keeping purposes only, an Account shall be
maintained for each Participant. Separate subaccounts shall be maintained
for each form of Deferred Compensation of a Participant."


3


7. Article III, Section 3 of the Plan is amended to read as follows:


"Section 3. Interest Rate


3.1 (a) A Participant's Account shall be credited as of each Valuation
Date during each Plan Year at the interest rate previously announced by the
Company to be applicable for the Plan Year, compounded annually. Interest
shall be credited as of each Valuation Date from the dates when deferred
amounts are credited to Accounts based on the balance of each Account.


(b) Guaranteed Interest Rate. In no event will the Interest Rate
applicable to a Participant's Account during the Participant's lifetime and
Transferred Accounts from the ARCO Chemical Company Annual Incentive Plan
be less than the Citibank Base Rate and in no event will the Interest Rate
applicable to Transferred Accounts from the ARCO Chemical Company Executive
Supplementary Savings Plan be less than the Money Market Rate of interest
under the CAP Plan for the period of time commencing on the date of
transfer and ending on the date the Accounts are paid."


8. Article IV, Section 1 of the Plan is amended to read as follows:


"Section 1. Plan Benefit


1.1 If a Participant has
-- End of Preview --
Home| About Us| FAQ| Subscription | Contact Us |