Company: IMO
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000049938-25-000015
Chunk: 200

Company: IMPERIAL OIL LTD
Filing Date: 2025-02-19
Form: 10-K
Item: Item 16
Chunk 200
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 registered (tax-deferred) group retirement savings plan (RRSP), subject to contribution limits under the Income Tax Act.Registered pensionplan•The company provides a registered defined pension benefit when leaving the company if age, service, and other provisions under the plan are met. •Benefit available in various annuity forms upon retirement. •Subject to income tax regulations that impose limits on the amounts that can be paid from a registered plan.•Provides for pension benefits accrual only until December 1st in the year the employee reaches the age of 71. •The company does not grant additional pension service credit.Supplemental pension arrangement•Addresses any portions of the defined benefit that cannot be paid from the registered plan due to income tax regulations. •Executive officers who receive an annual bonus, can also receive an annual supplemental pension benefit resulting from the annual bonus.•May be taken as a lump sum or an annuity.•Not payable if an employee resigns or is terminated with cause before reaching retirement eligibility. 

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Award vesting and share utilization

The number of common shares of the company issuable under the plan to any insiders (as defined by the Toronto Stock Exchange) cannot exceed 10 percent of the issued and outstanding common shares, whether at any time, or as issued in any one year. 

The company’s directors and officers as a group hold approximately 21 percent of the unvested restricted stock units that give the recipient the right to receive common shares that represent about 0.05 percent of the company’s outstanding common shares. Currently, the maximum number of common shares that any one person may receive from the vesting of restricted stock units is 88,000 common shares, which is about 0.02 percent of the outstanding common shares. 

Upon vesting, each restricted stock unit entitles the recipient the right to receive an amount equal to the value of one common share of the company, based on the five-day average closing price of the company’s shares on the vesting date and the four preceding trading days. Units that vest on the third anniversary of the grant date vest as a cash payment. Units that vest on the fifth, seventh, or tenth anniversary of the grant date vest as a cash payment, except that for units granted to Canadian residents, the recipient may receive one common share per unit or elect to receive a cash payment for the units. During the restricted period, the recipient will also receive cash payments equivalent to the cash dividends paid to holders of regular common stock.

Consistent with the program documentation, the