EXHIBIT 10.1
CHEVRONTEXACO CORPORATION
DEFERRED COMPENSATION PLAN
FOR MANAGEMENT EMPLOYEES
(As Amended and Restated Effective April 1, 2002)
(Formerly the "Salary Deferral Plan for Management Employees")
1. ESTABLISHMENT AND PURPOSE.
The ChevronTexaco Corporation Deferred Compensation Plan for Management
Employees (the "Plan") (formerly the Salary Deferral Plan for Management
Employees) is amended and restated effective April 1, 2002. The Plan is designed
to enhance the ability of ChevronTexaco Corporation (the "Corporation") and its
Subsidiaries to attract, motivate and retain executive and other key employees.
This Plan is intended to qualify as an unfunded ERISA pension plan maintained by
an employer for a select group of management or highly compensated employees, as
described in 26 C.F.R. Section 2520.104-23(d).
2. DEFINITIONS.
For purposes of the Plan, the following terms shall have the meanings set
forth below:
(a) "Account" means the bookkeeping account maintained on behalf of a
Participant to which shall be credited any amount described in Section 5.
(b) "Beneficiary" means the person designated as such by the Participant
pursuant to Section 7(b).
(c) "Board" means the Board of Directors of the Corporation.
(d) "Change in Control" means a `change in control' as that term is
defined in Article VI of the bylaws of the Corporation, as such bylaws may be
amended from time to time.
(e) "Code" means the Internal Revenue Code of 1986, as amended.
(f) "Committee" means the Committee appointed by the Board to administer
the Plan as provided in Section 3.
(g) "Corporation" means ChevronTexaco Corporation, a Delaware corporation,
or any successor corporation.
(h) "Eligible Employee" means an executive or other key employee
(including an officer, whether or not a director) of the Corporation or a
Subsidiary who holds a position of significant responsibility or whose
performance or potential contribution, in the judgment of the Committee, would
benefit the future success of the Corporation and who is designated by the
Committee as eligible to participate in the Plan. For purposes of Section 5(ii),
"Eligible
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employee" includes a former Eligible Employee for whom a bookkeeping
account is maintained under the Long-Term Incentive Plan or the Management
Incentive Plan on March 31, 2001.
(i) "Employee" means an individual who is a salaried employee on the
payroll of the Corporation or any Subsidiary.
(j) "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended.
(k) "Long-Term Incentive Plan" means the ChevronTexaco Corporation
Long-Term Incentive Plan, as amended from time to time.
(l) "Management Incentive Plan" means the ChevronTexaco Corporation
Management Incentive Plan, as amended from time to time.
(m) "Participant" means an Eligible Employee described in Section 4.
(n) "Plan" means the Chevron Corporation Salary Deferral Plan for
Management Employees, as set forth herein and as amended from time to time.
(o) "Plan Year" means the calendar year.
(p) "Rules" mean the rules promulgated by the Committee pursuant to the
authority granted in Section 3(c).
(q) "Subsidiary" means any corporation or entity in which the Corporation
directly or indirectly controls more than 50% of the total voting power of all
classes of its stock having voting powers and which the Board has designated as
a Subsidiary for purposes of the Plan.
3. ADMINISTRATION.
(a) The Committee.
The Plan shall be administered by the Management Compensation
Committee of the Board, or any successor thereto. The Board may at any time
replace the Management Compensation Committee with another Committee.
(b) Actions by the Committee.
The Committee shall hold meetings at such times and places as it may
determine. Acts approved by a majority of the members of the Committee present
at a meeting at which a quorum is present, or acts reduced to or approved in
writing by a majority of the members of the Committee, shall be the valid acts
of the Committee.
(c) Powers of the Committee.
The Committee shall have the authority to administer the Plan in its
sole discretion. To this end, the Committee is authorized to construe and
interpret the Plan, to promulgate, amend and rescind Rules relating to the
implementation of the Plan and to make all
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other determinations necessary or advisable for the administration of the Plan,
including the selection of Employees who shall be eligible to participate in the
Plan. Subject to the requirements of applicable law, the Committee may designate
persons other than members of the Committee to carry out its responsibilities
and may prescribe such conditions and limitations as it may deem appropriate.
Any determination, decision or action of the Committee in connection with the
construction, interpretation, administration, or application of the Plan shall
be final, conclusive and binding upon all persons participating in the Plan and
any person validly claiming under or through persons participating in the Plan.
(d) Liability of Committee Members.
No member of the Board or the Committee will be liable for any action
or determination made in good faith by the Board or the Committee with respect
to the Plan.
(e) Administration of the Plan Following a Change in Control.
Within 30 days after the occurrence of a Change in Control, the
Committee shall appoint an independent organization which shall thereafter
administer the Plan and have all of the powers and duties formerly held and
exercised by the Committee pursuant to Section 3(c) with respect to the Plan.
Upon such appointment, the Committee shall cease to have any responsibility with
respect to the administration of the Plan.
4. PARTICIPATION.
Each Eligible Employee who elects to defer base salary under the Plan in
accordance with the Rules or who makes a deferral election available under the
terms of the Management Incentive Plan or the Long-Term Incentive Plan, shall
automatically become a Participant in the Plan.
5. DEFERRED COMPENSATION.
The Committee shall promulgate Rules governing (i) elections by
Eligible Employees to defer base salary and (ii) the establishment of Accounts
to which shall be credited amounts deferred by an Eligible Employee pursuant to
an election described in (i) or any deferral election made available under the
terms of the Management Incentive Plan or the Long-Term Incentive Plan, the
designation of investments to be used to measure the value of such Accounts, the
crediting of interest or earnings to such Accounts, and the time, form and value
of distributions from such Accounts.
6. AMENDMENT OR TERMINATION OF THE PLAN.
Except as otherwise provided in this Section 6, the Board may amend,
suspend or terminate the Plan at any time. In the event of such termination, the
Accounts of Participants shall be paid at such times and in such forms as shall
be determined pursuant to the Rules, unless the Board prescribes a different
time or times for payment of such Accounts. No amendment, suspension or
termination (other than an amendment to discontinue future salary deferrals)
approved by the Board after six months prior to the public announcement of a
proposed transaction which, when effected, is a Change in Control or before the
date which is two years
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after the date of a Change in Control (the `Benefit Protection Period') shall be
valid or effective if such amendment, suspension or termination would alter the
terms of these resolutions or adversely affect the amount of a Participant's
Account under the Plan, whether or not the Participant's employment had
terminated at the time the amendment, suspension or termination was approved;
provided, however, any amendment, suspension or termination may be effected,
even if so approved after such a public announcement, if (a) the amendment,
suspension or termination is approved after any plans have been abandoned to
effect the transaction which, if effected, would have constituted a Change in
Control and the event which would have constituted the Change in Control has not
occurred, and (b) within a period of six months after such approval, no other
event constituting a Change in Control shall have occurred, and no public
announcement of a proposed event which would constitute a Change in Control
shall have been made, unless thereafter any plans to effect the Change in
Control have been abandoned and the event which would have constituted the
Change in Control has not occurred. Any amendment, suspension or termination of
the Plan which is so approved prior to a Change in Control at the request of a
third party who effectuates a Change in Control shall be deemed to be an
amendment, suspension or termination approved during the Benefit Protection
Period.
7. GENERAL.
(a) No Right of Employment.
Nothing contained in the Plan nor any action of the Committee
pursuant to the Plan shall give any employee any right to remain in the employ
of the Corporation or to impair the Corporation's right to terminate the
employment of any employee at any time, with or without cause, which right is
hereby reserved.
(b) Designation of Beneficiaries.
Participants may designate on the prescribed form one or more
Beneficiaries to whom distribution shall be made of any outstanding Account
balance at the time of the Participant's death. A Participant may change such
designation at any time by filing the prescribed form with the Committee. If a
Beneficiary has not been designated or if no designated Beneficiary survives the
Participant, distribution will be made to the Participant's surviving spouse as
Beneficiary if then living or, if not, in equal shares to the then living
children of the Participant as Beneficiaries or, if none, to the Participant's
estate as Beneficiary.
(c) Domestic Relations Orders.
The procedures established by the Corporation for the determination
of the qualified status of domestic relations orders and for making
distributions under qualified domestic relations orders, as provided in Section
206(d) of ERISA, shall apply to the Plan.
(d) Costs of the Plan.
The costs and expenses of administering the Plan shall be borne by
the Corporation.
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(e) Severability.
The provisions of the Plan shall be deemed severable and the
validity or unenforceability of any provision shall not affect the validity or
enforceability of the other provisions hereof.
(f) Binding Effect of Plan.
The Plan shall be binding upon and shall inure to the benefit of
the Corporation, its successors and assigns, and the Corporation shall require
any successor or assign to expressly assume and agree to perform the Plan in the
same manner and to the same extent that the Corporation would be required to
perform it if no such succession or assignment had taken place. The term "the
Corporation" as used herein shall include such successors and assigns. The term
"successors and assigns" as used herein shall mean a corporation or other entity
acquiring all or substantially all the assets and business of the Corporation
(including the Plan) whether by operation of law or otherwise.
(g) No Waiver of Breach.
No waiver by either party hereto at any time of any breach by the
other party hereto of, or compliance with, any condition or provision of the
Plan to be performed by such other party shall be deemed a waiver of similar or
dissimilar provisions of conditions at the same or at any prior or subsequent
time.
(h) No Assignment.
The interest and property rights of any Participant under the Plan
shall not be subject to option nor be assignable either by voluntary or
involuntary assignment or by operation of law, including (without limitation)
bankruptcy, garnishment, attachment or other creditor's process, and any act in
violation of this Section 7(i) shall be void.
(i) Applicable Law.
The Plan shall be administered, construed and governed in accordance
with ERISA and, to the extent not preempted by ERISA, the laws of the State of
California.
(j) Participant's Rights Unsecured.
This Plan is not intended and shall not be construed to require the
Corporation to fund any of the benefits provided hereunder or to establish a
trust for such purpose. The interest under the Plan of any Participant and such
Participant's right to receive a distribution of his or her Account shall be an
unsecured claim against the general assets of the Corporation. The Account shall
be a bookkeeping entry only and no Participant shall have any interest in or
claim against any specific asset of the Company pursuant to the Plan.
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(k) Authority to Establish a Grantor Trust.
The Committee is authorized in its sole discretion to establish a
grantor trust for the purpose of providing security for the payment of benefits
under the Plan; provided, however, that no Participant shall be considered to
have a beneficial ownership interest (or any other sort of interest) in any
specific asset of the Corporation or of its subsidiaries or affiliates as a
result of the creation of such trust or the transfer of funds or other property
to such trust.
(l) Other Benefit Plans.
To the extent permitted by applicable law, a Participant's deferral
elections made pursuant to this Plan shall be disregarded for purposes of
determining the Participant's benefits under any other benefit plan or program
established or maintained by the Corporation or its Subsidiaries.
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