Document:

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                                                                    Exhibit 10.3

LYONDELL CHEMICAL COMPANY

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

SUPPLEMENTARY EXECUTIVE
RETIREMENT PLAN

EFFECTIVE JANUARY 1, 2001
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                           LYONDELL CHEMICAL COMPANY
                    SUPPLEMENTARY EXECUTIVE RETIREMENT PLAN
                               TABLE OF CONTENTS

                                                                       PAGE

ARTICLE I - GENERAL PROVISIONS.........................................  1
     Section 1.1      Purpose and Intent of Plan.......................  1
     Section 1.2      Effective Date of Plan...........................  1
     Section 1.3      Costs of Plan....................................  1
     Section 1.4      Definitions......................................  1

ARTICLE II - SUPPLEMENTARY BENEFITS....................................  5
     Section 2.1      Types of Supplementary Benefits Provided.........  5
     Section 2.2      Eligibility in General...........................  5
     Section 2.3      Amount of Supplementary Benefits (or Survivor
                      Benefit) in General..............................  6
     Section 2.4      Deferral/Incentive Supplement....................  6
     Section 2.5      Qualification Limitation Supplement..............  8
     Section 2.6      Special Supplements..............................  8
     Section 2.7      Supplementary Benefits on Change in Control......  8

ARTICLE III - FORM OF BENEFIT.......................................... 11
     Section 3.1      Supplementary Benefits........................... 11
     Section 3.2      Special Supplements.............................. 12
     Section 3.3      Form of Benefit on Change in Control.............

ARTICLE IV - TIMING OF PAYMENT OF BENEFIT.............................. 13
     Section 4.1      Supplementary Benefits........................... 13
     Section 4.2      Special Supplements.............................. 13
     Section 4.3      Payment on Change in Control..................... 14

ARTICLE V - ADMINISTRATION............................................. 16
     Section 5.1      Interpretation................................... 16
     Section 5.2      Administrative Records........................... 16
     Section 5.3      Claims........................................... 16
     Section 5.4      Committee Liability.............................. 16

ARTICLE VI - FACILITY OF PAYMENT AND LAPSE OF BENEFITS................. 17
     Section 6.1      Payment on Incapacity............................ 17
     Section 6.2      Payments or Deposits............................. 17

1
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                           LYONDELL CHEMICAL COMPANY
                    SUPPLEMENTARY EXECUTIVE RETIREMENT PLAN

                          TABLE OF CONTENTS (cont'd)

ARTICLE VII - MISCELLANEOUS............................................ 18
     Section 7.1      Unfunded Benefit Plan............................ 18
     Section 7.2      Unsecured General Creditor....................... 18
     Section 7.3      Grantor Trust.................................... 18
     Section 7.4      Payments and Benefits Not Assignable............. 18
     Section 7.5      No Right of Employment........................... 19
     Section 7.6      Adjustments...................................... 19
     Section 7.7      Obligation to Company............................ 19
     Section 7.8      Protective Provisions............................ 19
     Section 7.9      Gender, Singular and Plural...................... 19
     Section 7.10     Law Governing.................................... 19
     Section 7.11     Validity......................................... 20
     Section 7.12     Notice........................................... 20
     Section 7.13     Successors and Assigns........................... 20

ARTICLE VIII - AMENDMENT AND DISCONTINUANCE............................ 21
     Section 8.1      Amendment of Plan................................ 21
     Section 8.2      Termination...................................... 21
     Section 8.3      Effect of Amendment or Termination............... 21

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                                   ARTICLE I

                               GENERAL PROVISIONS

SECTION 1.1  PURPOSE AND INTENT OF PLAN.

  This Plan is intended to provide supplemental retirement allowances in
accordance with its provisions to those Employees who are eligible to receive
Awards under the Lyondell Chemical Company Senior Manager or Executive Incentive
Plan, and who

  (a)  have deferred a portion of their Salary under the Lyondell Chemical
Company Executive Deferral Plan or

  (b)  have had the amount of their benefit reduced, due to federal legal
requirements, under a tax-qualified, defined benefit retirement plan maintained
by Lyondell Chemical Company, or

  (c) have been granted a Special Supplement under Section 2.6 of this Plan.

SECTION 1.2  EFFECTIVE DATE OF PLAN.

  This Plan document shall be effective January 1, 2001 and shall apply to
Employees who are employed by the Company on or after January 1, 2001, except to
the extent that certain provisions specify that they are effective on a
different date.

  This Plan is an amendment and restatement of the Prior Plan.

SECTION 1.3  PLAN COSTS.

  All Plan costs, including administrative costs, shall be borne by the Company
and no Employee contributions shall be required or permitted.

SECTION 1.4  DEFINITIONS.

  Actuarial Equivalent or Actuarially Equivalent mean, in comparing benefits
payable in different forms or at different times or in different circumstances,
a value under one set of circumstances which is the same as the value under a
different set of circumstances. The value shall be computed and determined by
using mortality assumptions, interest rates and other actuarial factors and
assumptions used to calculate actuarial equivalents under the Retirement Plan.

  Administrative Committee means the Benefits Administrative Committee.

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  Award means a cash award made under the Lyondell Chemical Company Senior
Manager or Executive Incentive Plans or their equivalents.  An Award does not
include Deferred Cash as that term is used in those plans.

  Base Pay means the annual amount of "Base Pay," as defined in the Retirement
Plan.

  Basic Allowance means an annuity payable for the Participant's life, with a
guarantee that an amount equal to 60 monthly payments will be made to the
Participant and his Beneficiary.

  Beneficiary means a person entitled to receive the Survivor Benefit under
Sections 2.4, 2.5 and/or 2.6 when the Participant dies.

  Change in Control means an event which is deemed to have occurred as of the
date that one or more of the following occurs:

     (a) Individuals who, as of January 1, 2001, constitute the entire
Board of Directors of the Company ("Incumbent Directors") cease for any reason
to constitute at least a majority of the Board of Directors; provided, however,
that any individual becoming a director subsequent to January 1, 2001 whose
election or nomination for election by the Company's shareholders was approved
by a vote of at least a majority of the then Incumbent Directors shall be
considered as though the individual was an Incumbent Director.  An individual
elected or nominated for election shall exclude any person whose initial
assumption of office occurs as a result of either an actual or threatened
election contest, as those terms are used in Rule 14a-11 under the Securities
Exchange Act of 1934, as amended, or other actual or threatened solicitation of
proxies or consents by or on behalf of any Person (as defined below) other than
the Board;

     (b)  The shareholders of the Company shall approve (i) any merger,
consolidation or recapitalization of the Company (or, if the capital stock of
the Company is affected, any Company subsidiary), or any sale, lease, or other
transfer (in one transaction or a series of transactions contemplated or
arranged by any party as a single plan) of all or substantially all of the
assets of the Company ("Acquisition Transaction") where (A) the shareholders of
the Company immediately prior to the Acquisition Transaction would not
immediately after that Acquisition Transaction beneficially own, directly or
indirectly, shares or other ownership interests representing in the aggregate
eighty percent (80%) or more of (1) the then outstanding common stock or other
equity interests of the corporation or other entity surviving or resulting from
the merger, consolidation or recapitalization or acquiring the assets of the
Company, as the case may be (the "Surviving Entity") or of its ultimate parent
corporation or other entity, if any, and (2) the Combined Voting Power of the
outstanding Voting Securities of the Surviving Entity (or of its ultimate parent
corporation or other entity, if any) or (B) the Incumbent Directors at the time
of the initial approval of the Acquisition Transaction would not immediately
after the transaction constitute a majority of the Board of Directors, or
similar managing group, of the Surviving Entity (or of its ultimate parent
corporation or other entity, if any), or (ii) any plan or proposal for the
liquidation or dissolution of the Company; or

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     (c) Any Person shall be or become the beneficial owner (as defined in
Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, as amended),
directly or indirectly, of securities of the Company representing in the
aggregate more than twenty percent (20%) of either (i) the then outstanding
shares of common stock of the Company ("Common Shares") or (ii) the Combined
Voting Power of all then outstanding Voting Securities of the Company; provided,
however, that notwithstanding the foregoing, a Change in Control shall not be
deemed to have occurred for purposes of this Subsection:

     (A) Solely as a result of the Company's acquisition of securities which, by
reducing the number of Common Shares or other Voting Securities outstanding,
increases (1) the proportionate number of Common Shares beneficially owned by
any Person to more than twenty percent (20%) of the outstanding Common Shares,
or (2) the proportionate voting power represented by the Voting Securities
beneficially owned by any Person to more than twenty percent (20%) of the
Combined Voting Power of all outstanding Voting Securities; or

     (B) Solely as a result of an acquisition of securities directly from the
Company except for any conversion of a security that was not acquired directly
from the Company.

If any Person referred to in paragraph (A) or (B) of this Subsection (c) becomes
the beneficial owner of any additional Common Shares or other Voting Securities
of the Company (other than pursuant to a stock split, stock dividend or similar
transaction), then a Change in Control shall be deemed to have occurred for
purposes of this definition.

     (d)  As used in this definition:

          (i)   "Combined Voting Power" means the aggregate votes entitled to be
cast generally in the election of the Board of Directors, or similar managing
group, of a corporation or other entity by holders of the outstanding Voting
Securities of the corporation or other entity.

          (iii)  "Person" means any individual, entity (including any
corporation, partnership, trust, joint venture, association or governmental
body) or group (as defined in Sections 14(d)(3) or 15(d)(2) of the Exchange Act
and the rules and regulations thereunder); provided, however, that Person shall
not include the Company or LYONDELL-CITGO Refining LP, Equistar Chemicals LP,
any of their subsidiaries, any of their employee benefit plans, any of their
majority-owned subsidiaries or any entity organized, appointed or established by
the Company, LYONDELL-CITGO Refining LP, Equistar Chemicals LP or those
subsidiaries for or pursuant to the terms of any plan.

          (iii)  "Voting Securities" shall means all securities of a corporation
or other entity having the right under ordinary circumstances to vote in an
election of the Board of Directors, or similar managing group, of the
corporation or other entity.

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  Code means the Internal Revenue Code of 1986, as amended, including any
successor provisions and any regulations or other guidance promulgated by
applicable governmental agencies.

  Company means Lyondell Chemical Company, a Delaware corporation, or its
successor.

  Deferral/Incentive Supplement means a Supplementary Benefit described under
Section 2.4.

  Deferred Compensation means any amount of Salary which a Participant elects to
defer according to the terms of the Lyondell Chemical Company Executive Deferral
Plan.

  Employee means any person who is regularly employed by the Company on or after
January 1, 2001 and who is an exempt, salaried employee.

  ERISA means the Employee Retirement Income Security Act of 1974, as amended,
including any successor provisions, and any regulations or other guidance
promulgated by applicable governmental agencies.

  Fifty Percent Joint and Survivor Annuity means an annuity providing payments
for the Participant's life, with a survivor annuity for his Beneficiary's life,
where each payment to the Beneficiary is 50 percent of the amount payable during
the Participant's life.  Each payment during the Participant's life shall be a
percentage of the amount otherwise payable to the Participant as a Basic
Allowance, so that the Fifty Percent Joint and Survivor Annuity is the Actuarial
Equivalent of that Basic Allowance.

  Financial Hardship means a condition of financial difficulty, determined by
the Administrative Committee upon advice of counsel to be sufficient to justify
a change in the elected form of benefits under Section 3.1 without causing, in
counsel's judgment, any other Plan Participant to receive taxable income in
advance of actual payment of Plan benefits.

  Lump Sum means a single payment of the benefit that is the Actuarial
Equivalent of the Basic Allowance.

  Participant means an active Employee or a former Employee who, at time of
Termination of Employment, retirement or death, was employed by the Company or a
Related Company and who is entitled to receive Plan benefits by reason of having
(a) received one or more Awards that would be used to compute the Employee's
Average Final Base Pay under a Retirement Plan, if the Awards were recognized as
a part of Base Pay under that Retirement Plan; (b) deferred a portion of his
Salary that would be used to calculate the Employee's Average Final Base Pay
under a Retirement Plan if the Deferred Compensation recognized as a part of
Base Pay under that Retirement Plan; (c) had his benefit under the Retirement
Plan reduced due to required limitations under the Code or ERISA; and/or (d)
been granted a Special Supplement under Section 2.6.

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Participant shall include a former Employee who has not received the entire
benefit to which he is entitled under this Plan.

  Plan means this Supplementary Executive Retirement Plan of Lyondell Chemical
Company.

  Pre-Retirement Survivor Annuity means the annuity paid under a Retirement Plan
to a survivor, attributable to Company contributions, that is payable on account
of the Member's death prior to commencing payment of a retirement allowance and
after the Member became entitled to a retirement allowance payable from Company
contributions under that Plan.

  Prior Plan means this Plan, as it was in effect prior to this amendment and
restatement.

  Qualified Limitation Supplement means a Supplementary Benefit described in
Section 2.5.

  Related Company means

  (a)  Any corporation that is a member of a controlled group of corporations
within the meaning of section 1563(e)(3)(C), of which Lyondell Chemical Company
is a member,

  (b)  All trades or businesses, whether or not incorporated, which, under
regulations prescribed by the Secretary of the Treasury pursuant to Section
210(d) of ERISA, are under common control with Lyondell Chemical Company, and

  (c)  LYONDELL-CITGO Refining LP, and Equistar Chemicals LP, to the extent that
the Related Company has agreed to recognize a Participant's Base Pay for
purposes of its retirement plan.

  Retirement Plan means the Lyondell Chemical Company Retirement Plan for Non-
Represented Employees or the Lyondell Chemical Company Retirement Plan for
Former ARCO Chemical Company Employees.

  Retirement Plans means both the Lyondell Chemical Company Retirement Plan for
Non-Represented Employees and the Lyondell Chemical Company for Former ARCO
Chemical Company Employees.

  Salary means the Employee's regular base salary paid by the Company or a
Related Company, excluding Awards and any other special or additional
compensatory payments.

  Special Supplement means a supplementary retirement benefit approved for
payment to an Employee under Section 2.6.

  Supplementary Benefit means any of the types of supplementary benefits
provided in

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Sections 2.4, 2.5 or 2.6.

  Supplementary Benefits means, collectively, all Supplementary Benefits
provided by this Plan, or all those Supplementary Benefits to which a particular
Participant is entitled, as the context requires.

  Survivor Benefit means any survivor benefit that is payable to a Participant's
Beneficiary under the provisions of Article II.

  Termination of Employment or Terminate Employment means to cease performing
services as an Employee for the Company or any Related Company.  However, an
individual will not be considered to have Terminated Employment for Plan
purposes solely because the Company or Related Company's identity changes due to
a sale of substantially all of the Company's or Related Company's assets or
stock, where the individual continues, after the sale, to perform substantially
the same services for the purchaser as he performed for the Company or Related
Company immediately prior to the sale.

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                                   ARTICLE II

                             SUPPLEMENTARY BENEFITS

SECTION 2.1  TYPES OF SUPPLEMENTARY BENEFITS PROVIDED.

This Plan provides for the following types of Supplementary Benefits:

  (a) Deferral/Incentive Supplements, as described in Section 2.4;

  (b) Qualification Limitation Supplements, as described in Section 2.5;

  (c) Special Supplements, as described in Section 2.6.

SECTION 2.2  ELIGIBILITY IN GENERAL.

  (a)  ELIGIBILITY FOR BENEFIT. An Employee who Terminates Employment with a
nonforfeitable right to a retirement allowance from a Retirement Plan or who has
a non-forfeitable right to a retirement allowance amount from a Retirement Plan
at the time of a Change in Control, automatically is eligible for each type of
Supplementary Benefit provided by Sections 2.4 and 2.5, to the extent he
satisfies the specific eligibility requirements of the applicable Section.
Supplementary Benefits shall be paid in the form and at the time provided under
Articles III and IV, respectively.

  (b)  ELIGIBILITY FOR SURVIVOR'S BENEFIT. If a Participant dies prior to
commencing any Supplementary Benefit to which the Participant is entitled, any
person designated by the Participant as his Beneficiary will be eligible to
receive a Survivor Benefit that relates to the particular Supplementary Benefit.
The Participant must designate the same person as his Beneficiary for purposes
of all Survivor Benefits payable under this Plan. Survivor Benefits to which a
Beneficiary is entitled under this Article will automatically be paid to the
Beneficiary. If the Participant dies prior to commencing any Supplementary
Benefits without having designated a Beneficiary, the Beneficiary shall be the
Participant's spouse, if the Participant was married at the time of death, and
the Participant's estate if the Participant was single at the time of death. If
a Participant dies after commencing Plan benefits in a form that provides for
continued payments after the Participant's death, benefit payments shall
continue in accordance with the terms and provisions of that form of benefit,
unless payable in a Lump Sum as a result of a Change in Control.

SECTION 2.3  AMOUNT OF SUPPLEMENTARY BENEFITS (OR SURVIVOR BENEFIT) IN GENERAL.

  The total amount of a Supplementary Benefits (or Survivor Benefits, if
applicable) payable under this Plan shall be the sum of the benefits to which
the Participant is entitled (or Survivor Benefits to which the Participant's
Beneficiary is entitled, if applicable) under all types of Supplementary
Benefits whose requirements are satisfied by or with respect to the Participant.

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  Each type of Supplementary Benefit payable from this plan to a Participant is
the Participant's Excess Retirement Benefit.  "Excess Retirement Benefit" means
the excess of:

  (a)  the Participant's "Hypothetical Amount", as defined separately for
purposes of each type of Supplementary Benefit, over

  (b)  the Participant's "Basic Amount". The Basic Amount shall be (i) the
amount of the monthly retirement allowance the Participant is actually entitled
to receive at retirement from the Retirement Plans; and (ii) the amount of any
Supplementary Benefit paid to a Participant or to a trustee or custodian on the
Participant's behalf under the ARCO Chemical Company Supplementary Executive
Retirement Plan as a result of the Company's acquisition of ARCO Chemical
Company.

SECTION 2.4.  DEFERRAL/INCENTIVE SUPPLEMENT.

  (a)  ELIGIBILITY FOR DEFERRAL/INCENTIVE SUPPLEMENT. A Participant is eligible
for a Deferral/Incentive Supplement if his Excess Retirement Benefit, using the
Hypothetical Amount in 2.4(b)(1), is positive. If a Participant entitled to
receive a Deferral/Incentive Supplement dies before commencing this benefit, his
Beneficiary will be paid a monthly Survivor Benefit described in Section
2.4(b)(2) below.

  (b) CALCULATION OF DEFERRAL/INCENTIVE SUPPLEMENT.

      (1)  PARTICIPANT'S BENEFIT. Subject to Sections 2.4 (c), (d) and (e) and
Section 2.7, the Hypothetical Amount of the Participant's Deferral/Incentive
Supplement shall be the monthly retirement benefit the Participant would have
received, in the form of a Basic Allowance, from the Retirement Plans if the
Base Pay used to calculate that benefit under the Retirement Plans had included
the Participant's Awards and Deferred Compensation.

  If the Participant transfers directly from the Company's employment to a
Related Company's employment, Base Pay to calculate the Hypothetical Amount will
include the Participant's Awards and Deferred Compensation while he is employed
by the Related Company, if the Company recognizes the Participant's salary while
employed by the Related Company to determine the Participant's Retirement Plan
benefits.

      (2)  SURVIVOR BENEFIT. The monthly amount of the Survivor Benefit payable
with respect to a Participant who dies before commencing a Deferral/Incentive
Supplement under his Plan shall be (i) minus (ii), where:

           (i)  is the monthly Pre-Retirement Survivor Annuity that would be
payable with respect to the Participant from the Retirement Plan if it were
calculated using the Participant's Hypothetical Amount described in Section
2.4(b)(1), and

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           (ii)  is the monthly amount of Pre-Retirement Survivor Annuity
actually payable from the Retirement Plans with respect to the Participant.

      (c) MAXIMUM LIMITATION ON DEFERRAL/INCENTIVE SUPPLEMENT BENEFITS.

          Notwithstanding the provisions of Paragraphs (a) and (b) of this
Section 2.4, the amount of a Participant's Deferral/Incentive Supplement (or
Survivor Benefit payable with respect to the Participant, as applicable) shall
be reduced to the extent necessary so the total annual benefits payable to or
with respect to the Participant (i) from a Retirement Plan; (ii) as a
Qualification Limitation Supplement, if any, under Section 2.5; and (iii) as a
Deferral/ Incentive Supplement, under this Section, will not exceed 65 percent
of the greater of (a) the sum of the Participant's annual Salary at his
Termination of Employment plus his most recent Award, or (b) the average of the
Participant's highest 3 consecutive years of Salary and Awards for each year
during the Participant's prior ten years of employment with the Company or a
Related Company.

          Benefits payable from the Retirement Plans shall not include annuities
resulting from voluntary employee contributions to the Retirement Plans and
increased benefits resulting from election of a Level Income Option under the
Retirement Plans.

      (d)  RECALCULATION DUE TO SUBSEQUENT AWARD. The Award used to determine
the Hypothetical Amount for the calendar year in which the Participant's
Termination of Employment or death occurs shall be the pro-rata share of the
Award, if any, granted for the year immediately prior to that calendar year. If
the Participant receives an actual award after Termination of Employment, the
actual Award shall be used to recalculate the Deferral/Incentive Supplement. A
Supplement already being paid may be increased, but not decreased, by this
recalculation. No recalculation shall occur if the Participant actually receives
an Award following a Change in Control.

      (e)  TERMINATION OF EMPLOYMENT. If a Participant is not eligible for a
retirement allowance from a Retirement Plan at the time of his Termination of
Employment, or if a Pre-Retirement Survivor Annuity is not payable under a
Retirement Plan on the Participant's death, the rights of a Participant or any
person claiming under or by right of the Participant to any Deferral/Incentive
Supplement benefits shall cease.

SECTION 2.5  QUALIFICATION LIMITATION SUPPLEMENT.

      (a)  ELIGIBILITY FOR QUALIFICATION LIMITATION SUPPLEMENT. An Employee
shall be eligible for a Qualification Limitation Supplement if his Excess
Retirement Benefit using the Hypothetical Amount in Section 2.5(b)(1) is
positive. If a Participant entitled to receive a qualification Limitation
Supplement dies before commencing this benefit, his Beneficiary will be paid the
monthly Survivor Benefit described in Section 2.5(b)(2) below.

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      (b) AMOUNT OF QUALIFICATION  LIMITATION SUPPLEMENT.

          (1)  PARTICIPANT'S BENEFIT. The Hypothetical Amount of the
Participant's Qualification Limitation Supplement shall be the monthly
retirement benefit the Participant would have received, in the form of a Basic
Allowance, from the Retirement Plans if the amount of the Participant's
retirement benefit under the Retirement Plans was not subject to limitations or
reductions required under the Code or ERISA.

          (2)  SURVIVOR BENEFIT. The monthly amount of a Survivor Benefit
payable with respect to a Participant who dies before commencing a Qualification
Limitation Supplement under this Plan shall be (i) minus (ii), where:

               (i)  is the monthly Pre-Retirement Survivor Annuity that would be
payable with respect to the Participant from a Retirement Plan if the amount of
the Participant's retirement benefit under the Retirement Plan was calculated
using the Participant's Hypothetical Amount described in Section 2.5(b)(i), and

               (ii) is the monthly amount of Pre-Retirement Survivor Annuity
actually payable from a Retirement Plan with respect to the Participant.

SECTION 2.6  SPECIAL SUPPLEMENTS.

  In addition to any other Supplementary Benefits to which an Employee may be
entitled under this Plan, at its sole discretion, the Compensation Committee of
the Company's Board of Directors may award a Special Supplement to any Employee
in an amount, or to be computed on a basis it determines.  These awards may be
granted for any reason the Compensation Committee deems appropriate, including,
without limitation, recognition of all or any part of the Employee's years of
service with an organization or entity acquired by, or merged into, the Company,
any Related Company, or any predecessor of the Company.  A Special Supplement
shall not be granted to or on account of any Employee who is not a member of a
select group of management or other highly compensated employee, as defined from
time to time by the Compensation Committee.  A certified copy of the resolution
granting a Special Supplement shall be furnished to the Administrative Committee
prior to the date any Plan payment is to be made.  The form, the time of
commencement, the duration of any periodic payments, and any other relevant
factors affecting the Company's obligation to provide a Special Supplement to an
Employee, or any related Survivor Benefit to the Employee's Beneficiary, if that
benefit is specified by the Compensation Committee, shall be determined at the
sole discretion of the Compensation Committee and shall be set forth in the
certified copy of the resolution.

2.7  SUPPLEMENTARY BENEFITS ON CHANGE IN CONTROL

  (a)  In the event of a Change in Control, the Hypothetical Amounts under
Sections 2.4 and 2.5 for Participants eligible for benefits under the Company's
Executive Severance Pay Plan

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shall be adjusted  as follows:

      (i)  If a Participant is age 55 at the time of a Change in Control,
Hypothetical Amounts shall be calculated first as a benefit payable at age 65
and then reduced by those percentages used to calculate a Participant's early
retirement allowances under the Retirement Plans.

      (ii) If a Participant has not attained age 55 at the time of a Change of
Control, Hypothetical Amounts shall be calculated first as a benefit payable at
age 65 and then actuarially reduced by the Actuarial Assumptions, defined under
Section (a)(ii) of the definition of Actuarial Equivalent in the Retirement
Plans.

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                                  ARTICLE III

                                FORM OF BENEFIT

SECTION 3.1.  SUPPLEMENTARY BENEFITS.

   (a)  OPTIONAL FORMS OF BENEFIT. Except as provided for a distribution on a
Change of Control, the Participant may elect to receive payment of his
Supplementary Benefits in any form available to pay the normal retirement
benefit under the Retirement Plans, provided that (1) the same payment form must
be elected for all Supplementary Benefits and (2) if the Participant elects an
annuity form for the Supplementary Benefits and for the retirement allowances
under the Retirement Plans, then he must elect the same annuity form under all
plans.

   (b)  ELECTIONS.

        (1)  The Participant must elect the form of payment within the time
period and in the manner prescribed by the Administrative Committee and
communicated to the Participant before the date the Participant is eligible to
commence Supplementary Benefit payments.

        (2)  If the Participant fails to elect the form of Supplementary Benefit
payment within the time period designated by the Administrative Committee, then
the Participant only may elect an annuity form available under the corresponding
Retirement Plan used to calculate the Participant's Supplementary Benefit. If
the Participant fails to elect a specific annuity form, the Participant will
receive (i) an annuity paid in the form of a Fifty Percent Joint and Survivor
Annuity, with the surviving spouse as the Beneficiary, if the Participant is
married at the time of retirement, or (ii) an annuity paid in the form of a
Basic Allowance, if the Participant is single at the time of retirement.

      (3)  If the Participant elects the form of benefit payment within the time
period designated by the Administrative Committee and subsequently wishes to
change that election prior to benefit commencement or, if the Participant is
being paid an annuity and wishes to receive the Actuarial Equivalent of the
remaining annuity installments, he may apply in writing to the Administrative
Committee to change the previously elected payment form (i) without any
reduction in, or imposition of any penalty on, the amount of Supplementary
Benefits, if the Administrative Committee determines that the Participant has
experienced a Financial Hardship justifying an election change, or (ii) if the
Administrative Committee, in its sole discretion, determines that it is
appropriate to grant the Participant's request.

      (4)  A Participant may elect payment of Survivor Benefits in any form
payable under the corresponding Retirement Plan used to calculate the
Participant's Supplementary Benefit if the Participant dies before commencing
his benefit. If the Participant fails to make this election, payment to the
Beneficiary will be in the form of a life annuity, payable for the Beneficiary's
life

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with a value equal to the Actuarially Equivalent value of the Survivor
Benefit payable in any other available form. The Beneficiary may request the
Administrative Committee change the Participant's prior election and the form
may be changed if the Administrative Committee determines that a Financial
Hardship exists or it is appropriate to grant the Beneficiary's request.

SECTION 3.2  SPECIAL SUPPLEMENTS.

  Any Special Supplement described in Section 2.6 shall be paid in a form
prescribed in the Compensation Committee's resolution conferring the benefit.

SECTION 3.3  FORM OF BENEFIT ON CHANGE IN CONTROL.

  A Participant's Supplementary Benefits or any Survivor Benefit described in
Article II shall be paid as a Lump Sum.

15
<PAGE>

                                   ARTICLE IV

                          TIMING OF PAYMENT OF BENEFIT

SECTION 4.1  SUPPLEMENTARY BENEFITS.

   (a)  Supplementary Benefits shall commence at the same time as the
Participant's benefits are paid under the Retirement Plans unless earlier
commencement is required under Section 4.3.

   (b)  Survivor Benefits payable under this Plan shall normally be paid on the
earliest date the Participant would have become eligible to begin receiving a
retirement allowance under a Retirement Plan. A Participant may elect that the
Survivor Benefit be paid immediately following his death as a Lump Sum, rather
than being paid on the Participant's earliest retirement eligibility date and a
Beneficiary may request that the Administrative Committee permit a Lump Sum
payment of the Actuarial Equivalent of the Basic Allowance at the time of the
Participant's death, according to requirements of Section 3.1(b)(4).

SECTION 4.2  SPECIAL SUPPLEMENTS.

  Any Special Supplement payable under Section 2.6 shall be payable at the time
or times prescribed in the Compensation Committee's resolution conferring that
benefit.

SECTION 4.3  PAYMENT IN THE EVENT OF A CHANGE IN CONTROL.

   (a)  Supplementary Benefits shall be payable immediately following a Change
in Control, unless the Participant has previously elected an alternate payment
commencement date, as established under Administrative Committee procedures, or
except as provided in (b).

   (b)  A Participant eligible for benefits under the Company's Executive
Severance Pay Plan shall receive an immediate Lump Sum payment of all
Supplementary Benefits provided under this Plan upon a Change in Control,
notwithstanding any prior election.

16
<PAGE>

                                   ARTICLE V

                                 ADMINISTRATION

SECTION 5.1  INTERPRETATION.

  The Administrative Committee has the exclusive right and discretionary
authority to interpret the Plan's provisions and to decide questions arising in
its administration. The Administrative Committee's decisions and interpretations
shall be final and binding on the Company, Employees, Participants and all other
persons.

SECTION 5.2  ADMINISTRATIVE RECORDS.

  The Administrative Committee shall keep records reflecting Plan
administration, which the Company may audit.

SECTION 5.3  CLAIMS.

  The Administrative Committee shall provide adequate written notice to any
Participant or Beneficiary whose claim for Plan benefits has been denied,
setting forth the specific reasons for the denial. The Participant or
Beneficiary will be given an opportunity for a full and fair review by the
Administrative Committee of its decision denying the claim. The Participant or
Beneficiary shall be given 60 days from the date of the notice denying any claim
within which to request the review.

SECTION 5.4  COMMITTEE LIABILITY.

  No Administrative Committee member shall be liable for any action taken in
good faith or for exercise of any power given to the Administrative Committee,
or for the actions of other Administrative Committee members.

17
<PAGE>

                                   ARTICLE VI

                   FACILITY OF PAYMENT AND LAPSE OF BENEFITS

SECTION 6.1  PAYMENT ON INCAPACITY.

  If the Administrative Committee deems that any person entitled to receive any
Plan payment is incapable of receiving or disbursing the payment because of
minority, illness or infirmity, mental incompetence, or incapacity of any kind,
the Administrative Committee, in its sole discretion, may take any one or more
of the following actions: it may apply the payment directly for the person's
comfort, support and maintenance; it may reimburse any person for any support
previously supplied to the person entitled to receive any payment; or it may pay
any other person the Administrative Committee selects to disburse the payment
for the person's comfort, support and maintenance, including, without
limitation, to any relative who has undertaken, wholly or partially, the expense
of person's comfort, care and maintenance, or any institution in whose care or
custody the person entitled to the payment may be. The Administrative Committee,
in its sole discretion, may deposit any payment due to a minor to the minor's
credit in any savings or commercial bank of the Administrative Committee's
choice.

SECTION 6.2  PAYMENTS OR DEPOSITS.

  Payments or deposits under this Article VI shall be a complete discharge, to
the extent of the payment or deposit, of the Plan or all other liability of the
Administrative Committee, the Company and this Plan.  Receipt of any payment,
distribution or deposit shall be a complete acquittance by the persons(s)
receiving the payment.  There shall be no liability to see to the application of
any Plan payments, distributions or deposits.

18
<PAGE>

                                  ARTICLE VII

                                 MISCELLANEOUS

SECTION 7.1  UNFUNDED BENEFIT PLAN.

  (a)  Benefits under Sections 2.4 and 2.6 are intended to constitute a plan
that is unfunded and maintained primarily for the purpose of providing deferred
compensation in the form of additional retirement benefits to a select group of
management or highly compensated employees, as defined in Sections 201(a)(2),
301(a)(3) and 401(a)(1) of ERISA.

  (b)  Benefits under Section 2.5 of this Plan are intended to constitute an
unfunded "excess benefit plan" within the meaning of Section 3(36) of ERISA.

SECTION 7.2  UNSECURED GENERAL CREDITOR.

  Participants and their Beneficiaries shall have no legal or equitable rights,
claims or interests in any specific Company assets or property, nor are they the
Beneficiaries of, or have any rights, claims or interests in any life insurance
policies, annuity contracts, or the proceeds of those policies or contracts,
which the Company owns or acquires (the "Policies").  Any Policies or other
Company assets shall be and shall remain general, unpledged, unrestricted
Company assets. The Company's obligation under the Plan is merely an unfunded
and unsecured Company promise to pay money in the future.

SECTION 7.3  GRANTOR TRUST.

  Although the Company is responsible for all Plan benefits, the Company, in its
discretion, may contribute funds to a grantor trust, as it deems appropriate, to
pay Plan benefits. The trust may be irrevocable, but trust assets shall be
subject to the claims of creditors of Lyondell Chemical Company.  To the extent
any Plan benefits are actually paid from the trust, the Company shall have no
further obligation for those benefits, but to the extent the benefit is not
paid, benefits shall remain the obligation of, and shall be paid by, the
Company. Participants shall be unsecured creditors insofar as their legal claim
for Plan benefits and Participants shall have no security interest in the
grantor trust.

SECTION 7.4  PAYMENTS AND BENEFITS NOT ASSIGNABLE.

  Payments to and benefits under this Plan are not assignable, transferable or
subject to alienation since they are primarily for the support and maintenance
of the Participants and their joint annuitant or Beneficiaries after retirement.
Likewise, payments shall not be subject to attachments by creditors of, or
through legal process against, the Company, the Administrative Committee or any
Participant.  Payments may be offset by the Company as provided under Section
7.7.

19
<PAGE>

SECTION 7.5  NO RIGHT OF EMPLOYMENT.

  The Plan provisions shall not give an Employee the right to be retained in
Company service nor shall this Plan or any action taken under it be construed as
an employment contract.

SECTION 7.6  ADJUSTMENTS.

  At the Company's request, the Administrative Committee may adjust the
Participant's Plan benefit or make other adjustments required to correct
administrative errors or provide uniform treatment of Participants, in a manner
consistent with the Plan's intent and purpose.

SECTION 7.7  OBLIGATION TO COMPANY.

  If a Participant becomes entitled to a distribution of Plan benefits and the
Participant has any debt, obligation, or other liability representing an amount
owed to the Company or any Company benefit plan, then the Administrative
Committee may offset the amount owed to the Company or the benefit plan against
the amount of benefits otherwise distributable under this Plan.

SECTION 7.8  PROTECTIVE PROVISIONS.

  Each Participant shall cooperate with the Company by furnishing any and all
information the Company requests to facilitate the payment of Plan benefits,
taking any physical examinations the Company deems necessary and taking other
relevant action the Company requests. If a Participant refuses to cooperate, the
Company shall have no further obligation to the Participant under the Plan.  If
the Participant makes any material misstatement of information or nondisclosure
of medical history, no benefits will be payable to the Participant or his
Beneficiary unless, at the Company's sole discretion.  benefits are payable in
an amount reduced to compensate the Company for any loss, cost, damage or
expense suffered or incurred by the Company as a result in any way of any
Participant action, misstatement or nondisclosure.

SECTION 7.9  GENDER, SINGULAR AND PLURAL.

  All pronouns and any variations are deemed to refer to the masculine,
feminine, or neuter, as the identity of the person or persons requires.  The
singular may be read as the plural and the plural as the singular, as the
context may require.

SECTION 7.10  LAW GOVERNING.

  This Plan shall be construed, regulated and administered under the laws of the
State of Texas, except to the extent that those laws are preempted by ERISA.

20
<PAGE>

SECTION 7.11  VALIDITY.

  If any Plan provision is held invalid, void or unenforceable, it shall not
affect the validity of any other Plan provision in any respect whatsoever.

SECTION 7.12  NOTICE.

  Any notice or filing required or permitted to be given to the Administrative
Committee under the Plan shall be sufficient if in writing and hand delivered,
or sent by registered or certified mail, to the Company's principal office,
directed to the attention of the Secretary of the Administrative Committee.
Notice shall be deemed given as of the date of delivery or, if delivery is made
by mail, as of the date shown or the postmark on the receipt for registration or
certification.

SECTION 7.13  SUCCESSORS AND ASSIGNS.

  This Plan shall be binding upon the Company and its successors and assigns.

21
<PAGE>

                                  ARTICLE VIII

                          AMENDMENT AND DISCONTINUANCE

SECTION 8.1  AMENDMENT OF PLAN.

  This Plan may be amended from time to time by a resolution of the Compensation
Committee of  the Board of Directors of Lyondell Chemical Company.

SECTION 8.2  TERMINATION.

  Lyondell Chemical Company intends to continue this Plan indefinitely, but
reserves the right to terminate it at any time for any reason, in its sole
discretion.

SECTION 8.3  EFFECT OF AMENDMENT OR TERMINATION.

  No Plan amendment or termination may adversely affect the benefit payable to
any Participant receiving or entitled to receive Plan benefits prior to the
effective date of the amendment or termination.   However, the Company may amend
the Plan to eliminate any optional form of payment and if so, the amendment will
not be deemed to adversely affect any Participant's benefit entitlement.

22<PAGE>

                                                                   Exhibit 10.11

Lyondell Chemical Company

_________________________________________________________________

ELECTIVE DEFERRAL PLAN FOR NON-EMPLOYEE DIRECTORS

As Amended and Restated Effective December 31, 2000
<PAGE>

                                   ARTICLE I

                              GENERAL PROVISIONS

SECTION 1.1.  PURPOSE AND INTENT OF PLAN.  This Plan is intended to provide an
opportunity for Directors who are not employees of the Company to accumulate
supplemental funds for retirement or special needs prior to retirement through
the deferral of portions of their Board and Board Committee Retainer Fees and
Meeting Fees.

SECTION 1.2.  EFFECTIVE DATE OF PLAN.  This amended and restated Plan document
shall be effective as of December 31, 2000.

SECTION 1.3.  DEFINITIONS.

        (a) Account means a separate bookkeeping account maintained by the
Company for each Participant and which measures and determines the amounts to be
paid to the Participant under the Plan.  Effective October 1, 1996, separate
subaccounts within the Account for previous deferrals of Retainer and Meeting
Fees, will be consolidated into a single account balance.

        (b)  Administrative Committee means the Directors Benefit Committee.

        (c) Beneficiary means a person who is entitled to receive a
Participant's interest under this Plan in the event of the Participant's death.

       (d) Board means the Board of Directors of Lyondell Chemical Company.

       (e) Board Committee means any committee established by the Board which
consists of Directors and which reports to the Board.

       (f) Chairman Fee means the annual amount payable in cash to a Director
as additional compensation for serving as Chairman of the Board or as Chairman
of a Board Committee.

       (g) Change in Control shall be deemed to have occurred as of the date
that one or more of the following occurs:

           (i) Individuals who, as of the Effective Date hereof, constitute the
entire Board of Directors of the Company ("Incumbent Directors") cease for any
reason to constitute at least a majority of the Board; provided, however, that
any individual becoming a director subsequent to the Effective Date hereof whose
election, or nomination for election by the Company's shareholders, was approved
by a vote of at least a majority of the then Incumbent Directors shall be
considered as though such individual was an Incumbent Director, but excluding,
for this purpose any such individual whose initial assumption of office occurs
as a result of either an actual or threatened election contest, as such terms
are used in Rule 14a-11 under the Securities Exchange

                                       1
<PAGE>

Act of 1934, as amended, or other actual or threatened solicitation of proxies
or consents by or on behalf of any Person (as defined below) other than the
Board;

          (ii) The stockholders of the Company shall approve (A) any merger,
consolidation or recapitalization of the Company (or, if the capital stock of
the Company is affected, any subsidiary of the Company), or any sale, lease, or
other transfer (in one transaction or a series of transactions contemplated or
arranged by any party as a single plan) of all or substantially all of the
assets of the Company (each of the foregoing being an "Acquisition Transaction")
where (1) the shareholders of the Company immediately prior to such Acquisition
Transaction would not immediately after such Acquisition Transaction
beneficially own, directly or indirectly, shares or other ownership interests
representing in the aggregate eighty percent (80%) or more of (a) the then
outstanding common stock or other equity interests of the corporation or other
entity surviving or resulting from such merger, consolidation or
recapitalization or acquiring such assets of the Company, as the case may be
(the "Surviving Entity") (or of its ultimate parent corporation or other entity,
if any), and (b) the Combined Voting Power of the then outstanding Voting
Securities of the Surviving Entity (or of its ultimate parent corporation or
other entity, if any) or (2) the Incumbent Directors at the time of the initial
approval of such Acquisition Transaction would not immediately after such
Acquisition Transaction constitute a majority of the Board of Directors, or
similar managing group, of the Surviving Entity (or of its ultimate parent
corporation or other entity, if any), or (B) any plan or proposal for the
liquidation or dissolution of the Company; or

          (iii)  Any Person shall be or become the beneficial owner (as defined
in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, as amended),
directly or indirectly, of securities of the Company representing in the
aggregate more than twenty percent (20%) of either (A) the then outstanding
shares of common stock of the Company ("Common Shares") or (B) the Combined
Voting Power of all then outstanding Voting Securities of the Company; provided,
however, that notwithstanding the foregoing, a Change in Control shall not be
deemed to have occurred for purposes of this Subsection (iii):

          (1) Solely as a result of an acquisition of securities by the Company
which, by reducing the number of Common Shares or other Voting Securities
outstanding, increases (a) the proportionate number of Common Shares
beneficially owned by any Person to more than twenty percent (20%) of the Common
Shares then outstanding, or (b) the proportionate voting power represented by
the Voting Securities beneficially owned by any Person to more than twenty
percent (20%) of the Combined Voting Power of all then outstanding Voting
Securities; or

          (2) Solely as a result of an acquisition of securities directly from
the Company except for any conversion of a security that was not acquired
directly from the Company,

provided, further, that if any Person referred to in paragraph (1) or (2) of
this Subsection (iii) shall thereafter become the beneficial owner of any
additional Common Shares or other Voting Securities of the Company (other than
pursuant to a stock split, stock dividend or similar transaction), then a Change
in Control shall be deemed to have occurred for purposes of this Subsection
(iii).

                                       2
<PAGE>

          (iv) For purposes of this definition of Change in Control:

          (1)  "Combined Voting Power" shall mean the aggregate votes entitled
to be cast generally in the election of the Board of Directors, or similar
managing group, of a corporation or other entity by holders of then outstanding
Voting Securities of such corporation or other entity.

          (2)  "Person" shall mean any individual, entity (including, without
limitation, any corporation, partnership, trust, joint venture, association or
governmental body) or group (as defined in Sections 14(d)(3) or 15(d)(2) of the
Exchange Act and the rules and regulations thereunder); provided, however, that
Person shall not include the Company, LYONDELL-CITGO Refining LP ("LCR") or
Equistar Chemicals, LP ("Equistar"), any of their subsidiaries, any employee
benefit plan of the Company, LCR, Equistar or any of their majority-owned
subsidiaries or any entity organized, appointed or established by the Company,
LCR, Equistar or such subsidiaries for or pursuant to the terms of any such
plan.

          (3)  "Voting Securities" shall mean all securities of a corporation or
other entity having the right under ordinary circumstances to vote in an
election of the Board of Directors, or similar managing group, of such
corporation or other entity.

     (h) Citibank Base Rate means for any Plan Year the average of the
prime rates at Citibank, N. A., in effect on the first day of the current
calendar quarter and each of the three prior quarters provided, however, that if
for any quarter the first day of the calendar quarter is not a business day, the
prime rate in effect on the first business day of such quarter shall be deemed
the prime rate for the first day of such quarter.

     (i) Code means the Internal Revenue Code of 1986, as amended.

     (j) Common Stock means the Company's common stock, par value $1.00 per
share.

     (k) Company means Lyondell Chemical Company, and any successor
thereto.

     (l) Deferral Election means a voluntary election made by a Director to
defer Retainer Fees and/or Meeting Fees pursuant to Section 2.2, for which the
Director has submitted a Participation Agreement.

     (m) Deferral Period means a maximum number of years established by the
Administrative Committee in advance of a particular Deferral Election, over
which the Director elects to defer Retainer Fees or Meeting Fees. A new Deferral
Period shall normally start each January 1, except that with respect to a new
Director, the Deferral Period shall commence 30 days after the Director's
election to the Board.

     (n) Deferred Compensation means the aggregate amount of Deferred
Retainer Fees and Supplemental Fees that a Director is required to defer
pursuant to Section 2.1 and the amount of Retainer Fees and Meeting Fees that a
Director elects to defer pursuant to a Deferral Election.  If applicable,
Deferred Compensation also includes the present value as of December

                                       3
<PAGE>

31, 1998 of the accrued retirement benefit earned under the Company's Retirement
Plan for Non-Employee Directors which a Director has elected to defer under this
Plan effective January 1, 1999.

     (o) Deferred Retainer Fees means the portion of the Retainer Fee
designated by the Administrative Committee as subject to the automatic deferral
provisions of Section 2.1.  As of the 2001 Plan Year, the Deferred Retainer Fee
is 25% of the Retainer Fee otherwise payable to the Director.

     (p) Deferred Stock Units or DSUs means a bookkeeping unit representing the
value of one share of Common Stock used to credit certain deferrals to a
Participant's account and track investment returns.

     (q) Director means a Director of the Board who is not a current employee of
the Company or any of its subsidiaries or affiliates.

     (r) Effective Date means December 31, 2000.

     (s) Financial Hardship means a condition of financial difficulty,
determined by the Administrative Committee, upon advice of counsel, based on
written information supplied by the Participant or Beneficiary, as the case may
be, in accordance with such standards established, from time to time, by the
Administrative Committee, which condition is sufficient to justify a change in
payment election under the Plan without causing receipt of taxable income by any
other Plan Participant before the Participant or Beneficiary, as the case may
be, actually receives his benefit.

     (t) In-Service Distribution means a distribution to a Participant
prior to Termination of Service pursuant to Section 4.4.

     (u) Interest Rate means (i) for any Plan Year commencing prior to a
Change in Control, the interest rate adopted by the Administrative Committee in
advance of the election period for a Plan Year, which shall constitute the
interest rate applicable to that Plan Year; or (ii) for each Plan Year
commencing after a Change in Control, the interest rate which is equal to the
greater of (a) the Prime Rate or (b) 125 percent of the rolling average Ten-Year
Treasury Note Rate, as of October 1 prior to the commencement of the applicable
Plan Year.

     (v) Meeting Fee means the amount paid in cash to a Director as
compensation for each Board and/or Board Committee meeting attended by the
Director.

     (w) Participant means any Director who is participating in this Plan
as provided in Article II, or any former Director who has not received the
entire benefit to which he or she is entitled under this Plan.

     (x) Participation Agreement means the Deferral Election submitted by a
Participant to the Company prior to the beginning of the Deferral Period.

                                       4
<PAGE>

     (y)  Plan means this Elective Deferral Plan for Non-Employee Directors.

     (z)  Plan Year means each calendar year beginning on January 1 and
ending on December 31, except that the first Plan Year shall be the period
commencing on August 1, 1990 and ending on December 31, 1990.

     (aa) Prime Rate means the prime commercial lending rate of Citibank,
N.A. as publicly announced to be in effect at the close of business on October 1
of the year immediately prior to the commencement of the applicable Plan Year.
The Prime Rate is not necessarily the lowest rate of interest of Citibank, N.A.

     (bb) Retainer Fee means the annual amount paid in cash to a Director
as compensation for serving in such capacity and any additional Chairman Fees.

     (cc) Retirement means the Director's termination of employment with a
right to an immediate retirement allowance from the Director's regular, full-
time employer.

     (dd) Supplemental Fee means the annual amount payable as additional
compensation to a Director who is not accruing a benefit under the Retirement
Plan for Non-Employee Directors.

     (ee) Survivor Benefit means the benefits described in Section 4.3 of
the Plan.

     (ff)  Ten-Year Treasury Note Rate means the rate periodically
published by the U.S. Department of Treasury under the heading "10 year Treasury
Note Rate".

     (gg)  Termination of Service means the Director ceasing to be a member
of the Board.

     (hh)  Trust Agreement means the Lyondell Petrochemical Company
Supplemental Executive Benefit Plans Trust Agreement and any amendments or
successor agreements thereto.

     (ii)  Unscheduled Distribution means a distribution to a Participant
pursuant to Section 4.5.

     (jj)  Valuation Date means the last day of each month, or such other
dates as the Administrative Committee may determine in its discretion, which may
be either more or less frequent, for the valuation of Participants' Accounts.

                                   ARTICLE II

                      PARTICIPATION AND DEFERRAL ELECTIONS

SECTION 2.1. REQUIRED DEFERRALS.  The payment of the Supplemental Fee and the
Deferred Retainer Fee shall be automatically deferred under the Plan in the form
of Deferred Stock Units.

                                       5
<PAGE>

The Director's Account described in Article III will be credited as of the first
day of each calendar month during the Plan Year with a number of DSUs equal to
(A) 1/12th of the amount of required deferrals under this Section, divided by
(B) the closing price of a share of Common Stock as of the last trading day of
the preceding calendar month.

SECTION 2.2.  ELECTIVE DEFERRALS.  A Director may elect to make deferrals in
addition to the required deferrals described in Section 2.1 by submitting a
Participation Agreement for a Deferral Period to the Company no later than
thirty (30) days prior to the commencement of the Deferral Period and specifying
the desired form of crediting method pursuant to Section 3.5.  Each Director's
Deferral Election shall be irrevocable except as authorized pursuant to Section
2.5.

SECTION 2.3.  LIMITATION ON DEFERRAL.  Deferral Elections shall be subject to
any limitation established by the Administrative Committee in advance of a
Deferral Period, including a minimum deferral amount reasonably anticipated to
be in excess of Eight Thousand Dollars ($8,000) per Deferral Period and a
minimum deferral amount reasonably anticipated to be in excess of at least Two
Thousand Dollars ($2,000) per Plan Year in the Deferral Period.  The maximum
Deferral Election for any Plan Year within a Deferral Period is an amount equal
to one hundred (100%) of the Participant's Retainer Fees and Meeting Fees that
would otherwise be payable in cash during such Plan Year.

SECTION 2.4. TERMINATION OF SERVICE.  A Participant's required deferrals
pursuant to Section 2.1 and Deferral Elections shall terminate upon the
Participant's Termination of Service.

SECTION 2.5. MODIFICATION OF DEFERRAL ELECTIONS.  Deferral Elections shall be
irrevocable except as follows:

     (a) Financial Hardship.  The Administrative Committee may permit a
Participant to reduce the amount elected under a prior Deferral Election, or to
waive the remaining deferrals under a prior Deferral Election, upon a finding
that the Participant has suffered a Financial Hardship.

     (b) Accelerated Deferral.  At the Administrative Committee's
discretion, prior to the beginning of any Plan Year in any Deferral Period for
which two or more Plan Years remain, a Participant may elect to accelerate the
amount of Deferred Compensation previously elected pursuant to a Deferral
Election for any of the remaining Plan Years in that Deferral Period; provided,
however, that any acceleration of Deferred Compensation for remaining Plan Years
in the Deferral Period shall not increase, for any single Plan Year, the total
Retainer Fees or Meeting Fee deferrals above one hundred percent (100%) of the
Participant's Retainer Fees and Meeting Fees payable in cash during the Plan
Year.

                                       6
<PAGE>

                                  ARTICLE III

                         DEFERRED COMPENSATION ACCOUNTS

SECTION 3.1.  ACCOUNTS.  For record-keeping purposes only, Accounts shall be
maintained for each Participant.

SECTION 3.2.  DEFERRED COMPENSATION.  A Participant's Deferred Compensation
shall be credited to his or her Account as of the date when the corresponding
non-deferred portion of the compensation is paid or would have been paid but for
the deferral.  Any Deferred Compensation attributable to the accrued benefit
earned by the Participant as of December 31, 1998 under the Company's Retirement
Plan for Non-Employee Directors shall be credited to the Participant's Account
effective January 1, 1999.  The Company shall have the right to withhold from
any Retainer Fees or Meeting Fees or Plan benefits (or otherwise to cause the
Director, his Beneficiary or the executor or administrator of his estate to make
payment of) any federal, state, local or foreign taxes required to be withheld
with respect to any Deferred Compensation or benefits paid pursuant to the Plan,
including, but not limited to, Medicare taxes.

SECTION 3.3.  DEFERRED STOCK UNITS.  When dividends are paid on shares of Common
Stock, a Participant's Account which is then credited with DSUs shall be
credited as of the dividend record date with an additional number of DSUs equal
to (A) the total amount of dividends payable with respect to the number of
shares of Common Stock represented by the DSUs then credited to such
Participant's Account, divided by (B) the closing price per share of Common
Stock on the dividend record date.

SECTION 3.4.  INTEREST RATE.  Except as provided in Section 4.8, the cash
portion of the Accounts shall be credited as of each Valuation Date with
interest based on the rates specified below, compounded annually.  Interest
shall be credited as of each Valuation Date from the date when Deferred
Compensation is credited to Accounts based on the cash portion of the balance of
each Account.

     (a) Interest Rate During Participant's Lifetime. During a Participant's
lifetime, the Participant's Account will be credited with interest at the
greater of the Interest Rate previously announced by the Company to be
applicable for the Plan Year or the current Citibank Base Rate.

     (b) Interest Rate After Participant's Death. Following a Participant's
death, the Participant's Account will be credited with interest at an interest
rate equal to the Citibank Base Rate. With respect to payments made pursuant to
Section 4.3(a), no interest shall be credited on that portion of the benefit
representing a Participant's unfulfilled Deferral Election for each unexpired
Deferral Period.

SECTION 3.5.  ELECTION AS TO CREDITING METHOD.  Once each Plan Year, a
Participant may elect to have the balance credited to his Account allocated
between DSUs and cash, and the corresponding crediting methods set forth in
Sections 3.3 and 3.4 above, on a prospective basis.  Such elections shall be
made in the manner prescribed by the Administrative Committee and will

                                       7
<PAGE>

be effective as of the first day of the following Plan Year. Notwithstanding the
foregoing, the required deferrals described in Section 2.1 will always be
credited in the form of DSUs, regardless of a Participant's election, for the
Plan Year for which such amounts are earned. Once the end of such Plan Year is
reached, a Participant may elect to transfer the value of such DSUs into the
cash portion of his Account. However, Deferral Elections may specify the initial
form in which such Deferred Compensation (other than required deferrals
described in Section 2.1) is to be credited.

SECTION 3.6.  DETERMINATION OF ACCOUNTS.  A Participant's Account as of each
Valuation Date shall consist of the balance of the Participant's Account as of
the immediately preceding Valuation Date, plus the amount of the Participant's
Deferred Compensation (in both cash and DSUs) since that Valuation Date, plus
interest and dividend-derived DSUs credited to the Account and minus any
distributions or reductions made from the Account since the immediately
preceding Valuation Date.  The value of DSUs credited to a Participant's Account
shall equal the closing price per share of Common Stock as of the most recent
Valuation Date.

SECTION 3.7.  VESTING OF ACCOUNTS.  Each Participant shall be one hundred
percent (100%) vested at all times in the amounts credited to his or her
Account.

SECTION 3.8.  STATEMENT OF ACCOUNTS.  At least annually, the Company shall
provide each Participant with a statement setting forth the balance of his or
her Account.

                                   ARTICLE IV

                                 PLAN BENEFITS

SECTION 4.1.  PLAN BENEFIT.   A Participant's benefit under the Plan shall equal
the amount of his or her Account as determined in accordance with Sections 3.6
and 4.6.  DSUs credited to a Participant's Account shall be paid in cash based
on the closing price of a share of Common Stock as of the most recent Valuation
Date.

SECTION 4.2.  DISTRIBUTION UPON TERMINATION OF SERVICE.  (a)  Lump Sum.
Benefits payable on account of a Participant's Termination of Service, other
than due to the death of the Participant, shall be paid in a lump sum payment of
cash unless the Participant has otherwise elected to have all or a portion of
the benefits distributed in accordance with Section 4.2(b) and/or Section 4.2(c)
hereof.

     (b) Deferred Commencement of Benefits. A Participant may elect to have cash
payment of all or any portion of the Participant's Account commence on (i)
January of any year following the Participant's Termination of Service or (ii)
the later of the month following Retirement or completion of all the Participant
Deferrals under the Plan, provided that payment of benefits must commence no
later than the first January following the year in which the Participant will
reach age seventy-two (72).

                                       8
<PAGE>

     (c) Installment Payments.  A Participant may elect to have payment of
all or any portion of the Participant's Account benefits made in substantially
equal monthly cash installment payments of five (5) years, ten (10) years or
fifteen (15) years.  The amount of each of the monthly installments shall be
redetermined effective as of January 1 of each year based on the remaining
Account balance and the remaining number of installment payments.

     (d) Change of Election.  A Participant, other than a former Director,
may change a distribution election once each year until the year in which the
Participant attains age 70.  The change must be made during a period established
by the Administrative Committee which precedes a Deferral Period and is
irrevocable until the next period established by the Administrative Committee.
The Participant's distribution election shall become irrevocable as of the year
in which the Participant attains age 70, except that a Participant may request
in writing that the Administrative Committee approve a change of an election
made pursuant to Subsection (b) or (c) at any time prior to commencement of the
payment of benefits, or in the case of installment payments, following
commencement of payments, if (i) the Administrative Committee determines that
the Participant has experienced a Financial Hardship justifying the request for
a change of election, or (ii) the Participant agrees to accept a reduction in
the value of the benefit, as determined by the Administrative Committee, upon
advice of counsel, to be necessary to preclude the receipt of taxable income by
any Participant in the Plan before the Participant actually receives his or her
benefit.

     If a Participant has a voluntary Termination of Service prior to the
year in which the Participant attains age 72, the Administrative Committee shall
not honor any change in distribution elections made within the two calendar
years immediately preceding the year in which the Termination of Service
occurred.  The Participant's distribution election which had been made before
that period shall be considered the controlling distribution election, unless
the Participant requests and the Administrative Committee grants, a change of
election for the reasons provided in (i) or (ii) above.

     (e) Payment of Benefits Upon Death of Participant.  Upon a
Participant's death, any of the Participant's vested and unpaid benefits shall
be paid in accordance with the applicable provisions of Section 4.3.

SECTION 4.3.  SURVIVOR BENEFITS.  (a)  Death Prior to Termination of Service.
If the Participant dies prior to Termination of Service, the Survivor Benefit
shall be equal to the sum of the Participant's Account as determined in
accordance with Section 3.6 and 4.6 plus an amount equal to the Participant's
unfulfilled Deferral Elections for unexpired Deferral Periods, if any.  The
Survivor Benefit shall be paid in a lump sum payment of cash unless the
Participant has elected to have all or a portion of the benefits distributed in
accordance with Subsection (b) hereof.

     (b) Installment Payments.  A Participant may elect to have payment of
the Survivor Benefit made to the Participant's Beneficiary in substantially
equal monthly cash payments of five (5) years, ten (10) years or fifteen (15)
years if the Participant's Termination of Service is due to the death of the
Participant.  The amount of each of the monthly installments shall be
redetermined effective as of January 1 of each year based on the remaining
Account balance and

                                       9
<PAGE>

the amount, if any, attributable to the Participant's unfulfilled Deferral
Elections and the remaining number of installment payments.

     (c) Death After Termination of Service.  If the Participant dies after
Termination of Service and all benefits have not been paid in a lump sum under
Section 4.2(a), the Survivor Benefit shall be equal to the Participant's Account
as determined in accordance with Sections 3.6 and 4.6 and payable in the form
and at the time elected by the Participant.

     (d) Change of Election.  A Beneficiary may request the Administrative
Committee to approve a change in the form of payment from installments to a lump
sum provided that (i) the Administrative Committee determines, upon application
of the Beneficiary, that the Beneficiary has experienced a Financial Hardship
justifying the request for a change of election, or (ii) the Beneficiary agrees
to accept a reduction in the value of the benefit, as determined by the
Administrative Committee, upon advice of counsel, to be necessary to preclude
the receipt of taxable income by any Participant in the Plan in advance of the
time the Participant actually receives his or her benefit.

     (e) Death Following Change in Control.  If a Participant is entitled
to a payment under Section 4.8 and dies prior to receiving his entire Account,
the balance of the Participant's Account shall be paid to Participant's
Beneficiary in cash in a lump sum payment or on an installment basis, according
to the Participant's existing election of manner of payment on Change in
Control.

SECTION 4.4.  IN-SERVICE DISTRIBUTIONS.  A Participant may elect to receive an
In-Service Distribution from his or her Account subject to the following
restrictions:

     (a) Timing of Election. The election to take an In-Service Distribution
from the Account for a particular Deferral Election must be made at the same
time the Participant makes the particular Deferral Election.

     (b) Amount of Distribution. The amount which a Participant can elect to
receive as an In-Service Distribution with respect to an Account shall be such
portions of the Participant's Account balance for the amounts deferred under a
particular Deferral Election, as prescribed by the Administrative Committee in
advance of the Deferral Period. If a previously elected amount exceeds the
Account balance when an In-Service Distribution is to be made, only the Account
balance will be paid.

     (c) Timing and Manner of In-Service Distribution.  The In-Service
Distribution shall be made in cash and shall commence at the time and in the
manner elected by the Participant in the Participation Agreement entered into
with respect to the Deferral Election; provided, however, that if the
Participant has a Termination of Service, the In-Service Distribution election
will be canceled and distribution will be made pursuant to Section 4.2 and
provided, further, that if the Participant commences Retirement and has elected
payment upon Retirement, the In-Service Distribution election will be canceled
and distribution will be made pursuant to Section 4.2.  In no event shall an In-
Service Distribution be made prior to two (2) years following the initial
effective date of the particular Deferral Election.

                                       10
<PAGE>

     (d) Treatment of Distribution.  Amounts paid to a Participant pursuant
to this Section 4.4 shall be treated as distributions from the Participant's
Account.

SECTION 4.5.  UNSCHEDULED DISTRIBUTIONS.  Upon a finding that a Participant has
suffered a Financial Hardship or upon the Participant agreeing to accept a
reduction of his or her benefit in an amount determined necessary by the
Administrative Committee, upon advice of counsel, to avoid constructive receipt
of taxable income by any other Participant, the Administrative Committee may, in
its sole discretion, make distributions from an Account prior to the time
specified for payment of the Account. Any unscheduled withdrawal will be paid in
a lump sum cash payment and will be subject to a minimum amount of $10,000 and
any additional conditions prescribed by the Administrative Committee.
Applications for unscheduled distributions and determinations thereon by the
Administrative Committee shall be in writing, and a Participant may be required
to furnish proof of the Financial Hardship in a formal manner as deemed
appropriate by the Administrative Committee, upon advice of counsel.

SECTION 4.6.  VALUATION AND SETTLEMENT.  The date on which a lump sum is paid or
the date on which installment payments commence shall be the "Settlement Date".
The Settlement Date shall be no more than thirty (30) days after the last day of
the month in which the Participant or his Beneficiary becomes entitled to
payments on account of Retirement, Termination of Service or death, unless the
Participant elected to defer commencement of payments pursuant to Section
4.2(b).  The Settlement Date for an In-Service Distribution or delayed payments
shall be the month which the Participant elects to have such payments commence
in the election form for designation of form of payment.  The amount of a lump
sum and the initial amount of installment payments shall be based on the value
of the Participant's Account as of the Valuation Date immediately preceding the
Settlement Date.

SECTION 4.7.  SMALL BENEFIT.  Notwithstanding any election made by the
Participant, the Company may pay any benefit in the form of a lump sum cash
payment to the Participant or any Beneficiary, if the value of the Plan benefits
remaining following a distribution for any reason, or the benefit payable to the
Participant or Beneficiary when payments to such Participant or Beneficiary
would otherwise commence, is less than $2,000.

SECTION 4.8.  CHANGE IN CONTROL.  Notwithstanding any contrary provisions of
this Article IV, in the event that a Change in Control occurs while this Plan is
in effect, the provisions of this Section 4.8 shall control.  In the event of a
Change in Control, the full amount of contributions and earnings accrued or
credited to the Participant's Account (whether credited as cash amounts or as
DSUs), as of the date immediately preceding the Change in Control, shall be
distributed in cash to the Participant or the Participant's Beneficiary, if a
Survivor Benefit is being paid to a Beneficiary at the time of Change in
Control.  Payment shall be made on a lump sum or installment basis, according to
the Participant's election of the manner of payment on Change in Control.

                                       11
<PAGE>

Section 4.9.  Combined Gross-up Payment; Tax Defense.

     (a) Combined Gross-up Payment.  If a Participant becomes entitled to
one or more payments (with a "payment" including, without limitation, an
increase in pension benefits and the vesting of an option or other non-cash
benefit or property) pursuant to the terms of any plan, arrangement or agreement
with the Company (the "Total Payments"), which are or become subject to the tax
imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the
"Code") (or any similar tax that may hereafter be imposed) (the "Excise Tax"),
the Company shall pay to the Participant an additional cash amount (the
"Combined Gross-up Payment") such that the net amount retained by the
participant after reduction for (i) any Excise Tax on the Total Payments and
(ii) any federal, state and local income or employment tax and Excise Tax
payable with respect to the Combined Gross-up Payment, shall equal the Total
Payments.  For purposes of determining the amount of the Combined Gross-up
Payment, a Participant shall be deemed (i) to pay federal income taxes at the
highest stated rate of federal income taxation (including surtaxes, if any) for
the calendar year in which the Combined Gross up Payment is to be made; and (ii)
to pay any applicable state and local income taxes at the highest stated rate of
taxation (including surtaxes, if any) for the calendar year in which the
Combined Gross-up Payment is to be made.  Any Combined Gross-up Payment required
hereunder shall be made to the Participant at the same time any Total Payment
subject to the Excise Tax is paid or deemed received by the Participant.  The
Combined Gross-up Payment shall not be paid under this Plan if a Combined Gross-
up Payment which is identical to or greater than the amount calculated under
this Section 4.9 is paid under any other plan, arrangement or agreement with the
Company.

     (b) Tax Defense.  If, in connection with the examination of a
Participant's tax return, the Internal Revenue Service asserts that any amount
payable or benefit provided hereunder is a "parachute payment" as defined in the
Code and such amount or benefit was not treated as a parachute payment in
determining a Combined Gross-up Payment, the Company at its cost shall assume
the defense of any controversy involving such issue and shall indemnify and hold
the Participant harmless for all liabilities, costs, taxes, interest and
penalties attributable to such issue and shall to the extent necessary (without
duplication) increase the Combined Gross-up Payment to give effect to any
additional amount or benefit determined to be a parachute payments.  The
Participant shall cooperate with the Company so that the Company will be able to
challenge any adverse determination by the Internal Revenue Service through
administrative proceedings and, if determined by the Company, through
litigation.

                                   ARTICLE V

                           DESIGNATION OF BENEFICIARY

SECTION 5.1.  DESIGNATION OF BENEFICIARY.  Each Participant shall have the right
to designate a Beneficiary or Beneficiaries to receive his interest in his
Account upon his death as determined in accordance with Section 4.3.  Such
designation shall be made on a form provided by and delivered to the Company.
The Participant shall have the right to change or revoke any such designation
from time to time by filing a new designation or notice of revocation with the

                                       12
<PAGE>

Company.  No notice to or consent by any Beneficiary shall be required to effect
any such change or revocation.

SECTION 5.2.  FAILURE TO DESIGNATE BENEFICIARY.  If a Participant fails to
designate a Beneficiary before his or her death, or if no designated Beneficiary
survives the Participant, the balance in the Participant's Account shall be paid
in cash in a lump sum to the executor or administrator for his or her estate.

                                   ARTICLE VI

                                 ADMINISTRATION

SECTION 6.1.  ADMINISTRATIVE COMMITTEE.  The Administrative Committee shall be
responsible for the administration of the Plan.

SECTION 6.2.  RULES OF CONDUCT.  The Administrative Committee shall adopt such
rules for the conduct of its business and administration of this Plan as it
considers desirable, provided they do not conflict with the provisions of this
Plan.

SECTION 6.3.  LEGAL, ACCOUNTING, CLERICAL AND OTHER SERVICES.  The
Administrative Committee may authorize one or more of its members or any agent
to act on its behalf and may contract for legal, accounting, clerical and other
services to carry out this Plan.  All expenses of the Administrative Committee
shall be paid by the Company.

SECTION 6.4.  INTERPRETATION OF PROVISIONS.  The Administrative Committee shall
have the exclusive right and discretionary authority to interpret the provisions
of this Plan and to decide questions arising in its administration.  The
decisions and interpretations of the Administrative Committee shall be final and
binding on the Company, Participants, Directors, Beneficiaries and all other
persons.

SECTION 6.5.  RECORDS OF ADMINISTRATION.  Records reflecting the administration
of this Plan shall be kept.

SECTION 6.6.  DENIAL OF CLAIM.  The Administrative Committee shall provide
adequate notice in writing to any Participant, Director or Beneficiary whose
claim for benefits under this Plan has been denied, setting forth the specific
reasons for such denial.  The Participant, Director or Beneficiary will be given
an opportunity for review by the Administrative Committee of the decision
denying the claim.  The Participant, Director or Beneficiary shall be given
sixty (60) days from the date of the notice denying any such claim within which
to request such review.

SECTION 6.7.  LIABILITY OF COMMITTEE.  No member of the Administrative Committee
shall be liable for any action taken in good faith or for exercise of any power
given the Administrative Committee, or for the actions of other members of said
Administrative Committee.

                                       13
<PAGE>

                                  ARTICLE VII

                          AMENDMENT AND DISCONTINUANCE

SECTION 7.1.  AMENDMENT OF PLAN.  This Plan may be amended from time to time by
the Board of Directors of the Company.

SECTION 7.2.  TERMINATION.  The Company intends to continue this Plan
indefinitely, but reserves the right to terminate it at any time.  In the event
of a Change in Control, this Plan shall be terminated following distribution of
assets to Participants or to the Independent Plan Administrator under the Trust
Agreement.

SECTION 7.3.  EFFECT OF AMENDMENT OR TERMINATION.  No amendment or termination
of this Plan may adversely affect the benefit payable to any former Participant
or Beneficiary receiving benefits under this Plan prior to the effective date of
the amendment or termination, or any Participant or Beneficiary of a deceased
Participant who, as of such effective date, was vested in or eligible to receive
a benefit under this Plan, except as follows.  Payment of a Participant's
Account to the Participant or a Beneficiary in a previously elected manner of
distribution payable on Change in Control shall not be considered an amendment
which adversely affects benefits under this Plan.

     No amendment or termination of this Plan due to a Change in Control
shall adversely affect the amount of contributions and earnings accrued or
credited to any former or current Participant's Account under this Plan
immediately prior to the Change in Control.

                                  ARTICLE VIII

                                 MISCELLANEOUS

SECTION 8.1.  UNSECURED GENERAL CREDITOR.  Participants and their Beneficiaries
shall have no legal or equitable rights, claims or interests in any specific
assets or property of the Company, nor shall they be the beneficiaries of, or
have any rights, claims or interests in any life insurance policies, annuity
contracts, or the proceeds therefrom owned, or which may be acquired by, the
Company ("Policies").  Any such Policies or other assets of the Company shall
be, and remain, the general, unpledged, unrestricted assets of the Company.  The
Company's obligation under the Plan shall be merely that of an unfunded and
unsecured promise of the Company to pay money in the future.

SECTION 8.2.  GRANTOR TRUST.  Although the Company is responsible for the
payment of all benefits under the Plan, the Company may, in its sole discretion,
contribute funds to a grantor trust for the purpose, as it deems appropriate, of
paying benefits under this Plan.  Such trust may be irrevocable, but assets of
the trust shall be subject to the claims of creditors of the Company.

                                       14
<PAGE>

To the extent any benefits provided under the Plan are actually paid from the
trust, the Company shall have no further obligation with respect thereto but to
the extent not so paid, such benefits shall remain the obligation of, and shall
be paid, by the Company. The Participants or Beneficiaries of deceased
Participants shall have the status of unsecured creditors insofar as their legal
claim for benefits under the Plan and shall have no security interest in the
grantor trust.

SECTION 8.3.  PAYMENTS AND BENEFITS NOT ASSIGNABLE.  Payments to and benefits
under this Plan are not assignable, transferable or subject to alienation since
they are primarily for the support and maintenance of the Participants and
Beneficiaries. Likewise, such payments shall not be subject to attachment by
creditors of, or through legal process against, the Company, the Administrative
Committee or the Participants.

SECTION 8.4.  NO RIGHT TO SERVICE ON THE BOARD.  The provisions of this Plan
shall not give a Director the right to be retained in the service of the Company
nor shall this Plan or any action taken under the Plan be construed as a
contract for service on the Board.

SECTION 8.5.  ADJUSTMENTS.  At the Company's request, the Administrative
Committee may, with respect to a Participant, adjust such Participant's benefit
under this Plan or make such other adjustments with respect to such Participant
as are required to correct administrative errors or provide uniform treatment of
Participants in a manner consistent with the intent and purpose of this Plan.

SECTION 8.6.  OBLIGATION TO COMPANY.  If a Participant becomes entitled to a
distribution of benefits under the Plan, and if at such time the Participant has
outstanding any debt, obligation, or other liability representing an amount
owing to the Company, or any benefit plan maintained by the Company, then the
Company may offset such amount owed to it or such benefit plan against the
amount of benefits otherwise distributable.  Such determination shall be made by
the Administrative Committee.

SECTION 8.7.  PROTECTIVE PROVISIONS.  Each Participant shall cooperate with the
Company by furnishing any and all information requested by the Company in order
to facilitate the payment of benefits hereunder, taking such physical
examinations as the Company may deem necessary and taking such other relevant
action as may be requested by the Company.  If a Participant refuses to
cooperate, the Company shall have no further obligation to the Participant under
the Plan.  If the Participant makes any material misstatement of information or
nondisclosure of medical history, then no benefits will be payable hereunder to
such Participant or his Beneficiary, provided, that in the Company's sole
discretion, benefits may be payable in an amount reduced to compensate the
Company for any loss, cost, damage or expense suffered or incurred by the
Company as a result in any way of any such action, misstatement or
nondisclosure.

SECTION 8.8.  GENDER, SINGULAR AND PLURAL.  All pronouns and any variations
thereof shall be deemed to refer to the masculine, feminine, or neuter, as the
identity of the person or persons may require.  As the context may require, the
singular may be read as the plural and the plural as the singular.

                                       15
<PAGE>

SECTION 8.9.  LAW GOVERNING.  This Plan shall be construed, regulated and
administered under the laws of the State of Texas, except to the extent that
such laws are preempted by ERISA.

SECTION 8.10.  NOTICE.  Any notice or filing required or permitted to be given
to the Administrative Committee or the Company under the Plan shall be
sufficient if in writing and hand delivered, or sent by registered or certified
mail, to the principal office of the Company, directed to the attention of the
Secretary of the Company. Such notice shall be deemed given as to the date of
delivery or, if delivery is made by mail, as of the date shown on the postmark
on the receipt for registration or certification.

SECTION 8.11.  SUCCESSORS AND ASSIGNS.  This Plan shall be binding upon the
Company and its successors and assigns.

SECTION 8.12.  PROVISIONS FOR INCAPACITY.  If the Administrative Committee deems
any person entitled to receive any payment under the provisions of this Plan
incapable of receiving or disbursing the same by reason of minority, illness or
infirmity, mental incompetency, or incapacity of any kind, the Administrative
Committee may, in its sole discretion, take any one or more of the following
actions: it may apply such payment directly for the comfort, support and
maintenance of such person; it may reimburse any person for any such support
theretofore supplied to the person entitled to receive any such payment; or it
may pay such payment to any other person selected by the Administrative
Committee to disburse such payment for the comfort, support and maintenance of
the person entitled thereto, including, without limitations, to any relative who
has undertaken, wholly or partially, the expense of such person's comfort, care
and maintenance, or any institution in whose care or custody the person entitled
to the payment may be.  The Administrative Committee may, in its sole
discretion, deposit any payment due to a minor to the minor's credit in any
savings or commercial bank of the Administrative Committee's choice.

IN WITNESS WHEREOF, LYONDELL CHEMICAL COMPANY, acting by and through its duly
authorized officer, has caused this Instrument to be executed on this 9th day
of May, 2001.

ATTEST:                                LYONDELL CHEMICAL COMPANY

By: /s/ Michelle S. Miller             By: /s/ Kerry A. Galvin
   ------------------------               ---------------------
      Assistant Secretary                 Kerry A. Galvin
                                          Secretary

                                       16

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