Document:

Exhibit 10.7

 

ORIGINAL
FOR EXECUTION

APPROVED
VICE PRESIDENT HUMAN RESOURCES

EFFECTIVE JANUARY 1, 2005

 

CONOCOPHILLIPS

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

 

PRE-AMERICAN JOBS CREATION ACT OF 2004 (“AJCA”)

GRANDFATHERED PROVISIONS

 

Benefits under this Plan,
formerly the Phillips Petroleum Company Supplemental Executive Retirement Plan,
(the “Phillips Plan”), that commenced prior to January 1, 2005 (“AJCA-grandfathered
benefits”), shall be subject exclusively to the terms and conditions of the
Phillips Plan in effect or before October 3, 2004. No change in the
ConocoPhillips Retirement Plan adopted subsequent to such date and no change in
the Phillips Plan or in the ConocoPhillips Supplemental Executive Retirement
Plan adopted after such date shall apply to an AJCA-grandfathered benefit. Provided,
however, for purposes of this paragraph, benefits shall be deemed to have
commenced prior to January 1, 2005 and shall be AJCA-grandfathered benefits if
the relevant corporate officer or committee approved the eligible employee’s
petition regarding time and form of payment before January 1, 2005 even if the
benefit commenced after December 31, 2004. The “relevant corporate officer or
committee” means the person or persons with the authority under the Phillips
Plan to approve a petition regarding the time and form of payment.

 

1

 

SECTION I -
PURPOSE

 

The purpose of the ConocoPhillips
Supplemental Executive Retirement Plan (“Plan”) is to supplement the retirement
benefits of Retiring eligible employees who were hired in mid- career. ConocoPhillips
Company (“Company”) recognizes that from time to time, it retains the services
of employee(s) after the employee has performed services at another company (or
companies) for varying periods of time, in order to obtain the special skills
and expertise developed by the key employee during these other periods of
employment. These employees generally forego all or a portion of their
potential retirement benefits upon leaving their previous employer(s). This
Plan, therefore, supplements retirement benefits to at least partially
compensate for the loss of retirement benefits accrued at the previous
employer(s). The amount of supplemental benefit payable under this Plan is not
intended to cause a Retiring eligible employee’s retirement benefit to equal or
exceed a full career Retiring eligible employee’s benefit.

 

SECTION II - DEFINITION OF TERMS

 

	
  a)

  	
  Affiliated
  Group

  	
   

  	
  shall mean
  the Company plus other subsidiaries and affiliates in which it owns a 5% or
  more equity interest.

  
	
   

  	
   

  	
   

  	
   

  
	
  b)

  	
  Retirement
  Income Plan

  	
   

  	
  is Title I
  of the ConocoPhillips Retirement Plan (Phillips Retirement Income Plan).

  
	
   

  	
   

  	
   

  	
   

  
	
  c)

  	
  Retirement
  (or Retire, or Retiring)

  	
   

  	
  is
  termination of employment with the Company on or after the employee’s
  earliest early retirement date as defined in the Retirement Income Plan. It
  includes termination of employment

  

 

2

 

	
   

  	
   

  	
   

  	
  at an age
  below 55 only when Section V applies.

  
	
   

  	
   

  	
   

  	
   

  
	
  d)

  	
  Credited
  Service, Final Average Earnings, Normal Retirement Date, and Early Retirement
  Date

  	
   

  	
  as
  determined in accordance with the provisions of the Retirement Income Plan.

  
	
   

  	
   

  	
   

  	
   

  
	
  e)

  	
  Total Final
  Average Earnings

  	
   

  	
  is the
  average of the high 3 earnings, excluding Incentive Compensation Plan Awards,
  paid in consecutive years of the last 10 years prior to termination of
  employment plus the average of the high 3 Incentive Compensation Plan Awards
  for any of such last 10 years under the Incentive Compensation Plan, whether
  paid or deferred and shall include the value of any special awards specified
  by the Compensation Committee to be included for final average earnings
  purposes under the terms of the special awards when granted by the
  Compensation Committee, and shall also recognize benefits paid under Section
  4.2 of the Phillips Petroleum Company Executive Severance Plan in the same
  manner as layoff pay is recognized under the Retirement Income Plan.

  
	
   

  	
   

  	
   

  	
   

  
	
  f)

  	
  Total
  Credited Service

  	
   

  	
  is an
  employee’s Credited Service plus any additional months of service as
  calculated under the Principal Corporate Officers Supplemental Retirement
  Plan and Missed Credited Service as defined in sub-section (j) of Section II
  of Article I in the Retirement Income Plan, plus months of service by recognizing
  benefits paid under Section 4.2 of the Phillips Petroleum Company Executive
  Severance Plan in the same manner as layoff pay is recognized under the
  Retirement Income Plan.

  
	
   

  	
   

  	
   

  	
   

  
	
  g)

  	
  Plan
  Administrator

  	
   

  	
  means the
  person who is the highest level officer of the Company with primary
  responsibility for human

  

 

3

 

	
   

  	
   

  	
   

  	
  resources,
  or such person’s successor.

  
	
   

  	
   

  	
   

  	
   

  
	
  h)

  	
  Trustee

  	
   

  	
  means the
  trustee of the grantor trust established by the Trust Agreement between the
  Company and Wachovia Bank, N. A. dated as of June 1, 1998, or any successor
  trustee.

  
	
   

  	
   

  	
   

  	
   

  
	
  i)

  	
  Participating
  Subsidiary

  	
   

  	
  means a
  subsidiary of the Company, of which the Company beneficially owns, directly
  or indirectly, more than 50% of the aggregate voting power of all outstanding
  classes and series of stock, where such subsidiary has adopted one or more
  plans making participants eligible for participation in this Plan.

  

 

SECTION III - ELIGIBLE EMPLOYEES

 

All employees of the Company
who are participants in the Retirement Income Plan and who, a) as of November
1, 1988 participated in the Incentive Compensation Plan as members of Teams I,
II, III (including those individuals promoted to such levels through November
1, 1988, ie: Grade 33 or above and ICP eligible), or b) were active employee
participants or were eligible to participate in the Key Employee Death
Protection Plan on the date of its termination (December 31, 1986), c) are
hired subsequent to November 1, 1988 and at the time of hire are recommended for
participation in the Plan by the Plan Administrator, with approval by the Chief
Executive Officer of the Company, or d) prior to retirement are recommended for
participation in the Plan by the Plan Administrator, with approval by the Chief
Executive Officer of the Company, will be eligible for benefits under this
Plan.

 

4

 

SECTION IV - ELIGIBILITY FOR BENEFITS

 

An eligible employee as
described in Section III, will be eligible to receive the benefit amount described
in Section VI only if the results of (a) below exceed the results of (b) below
where:

 

(a)         is the lesser of the
following percentages;

 

(i)            2.4% times the greater
of the eligible employee’s Credited Service or the Employee’s Total Credited
Service at the time of Retirement; or

 

(ii)           the Maximum SERP
Benefit Percentage shown in the schedule below based upon the eligible employee’s
attained age at Retirement

 

and,      (b)           is
the percentage derived by multiplying 1.6% times the eligible employee’s Total
Credited Service at the time of Retirement.

 

	
  Attained

  	
   

  	
   

  	
   

  
	
  Age at

  	
   

  	
  Maximum SERP

  	
   

  
	
  Retirement

  	
   

  	
  Benefit Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  65

  	
   

  	
  60.0

  	
  %

  
	
  64

  	
   

  	
  58.4

  	
  %

  
	
  63

  	
   

  	
  56.8

  	
  %

  
	
  62

  	
   

  	
  55.2

  	
  %

  
	
  61

  	
   

  	
  53.6

  	
  %

  
	
  60

  	
   

  	
  52.0

  	
  %

  
	
  59

  	
   

  	
  50.4

  	
  %

  
	
  58

  	
   

  	
  48.8

  	
  %

  
	
  57

  	
   

  	
  47.2

  	
  %

  
	
  56

  	
   

  	
  45.6

  	
  %

  
	
  55

  	
   

  	
  44.0

  	
  %

  
	
  54 or younger

  	
   

  	
  -0-

  	
   

  

 

5

 

SECTION V - SPECIAL ELIGIBILITY

 

An eligible employee as
described in Section III who is less than age 55 and who is laid off under the
Layoff Plan of Phillips Petroleum Company and/or the Supplemental Layoff Plan
of Phillips Petroleum Company and/or the Enhanced Supplemental Layoff Pay Plan
of Phillips Petroleum Company and/or the Phillips Layoff Plan and/or the Work
Force Stabilization Plan of Phillips Petroleum Company and/or who receives
benefits under the Phillips Petroleum Company Executive Severance Plan or any
similar plans which may be adopted by the Company from time to time and any
employee who becomes employed by a member of the Affiliated Group, other than
the Company or a Participating Subsidiary, immediately after terminating
employment with the Company or a Participating Subsidiary, will be eligible to
receive the benefit described in Section VI if the results of (a) below exceed
the results of (b) below where:

 

(a)         is the lesser of the
following percentages;

 

(i)            2.4% times the greater
of an eligible employee’s Credited Service, or the employee’s Total Credited
Service at the time of layoff or termination; or

 

(ii)           the Maximum SERP
Benefit Percentage shown in the schedule below based upon the eligible employee’s
attained age at the time of layoff or termination.

 

and,      (b)           is
the percentage derived by multiplying 1.6% times the eligible employee’s Total
Credited Service at the time of layoff or termination.

 

6

 

	
  Attained Age

  	
   

  	
   

  	
   

  
	
  at the time

  	
   

  	
  Maximum SERP

  	
   

  
	
  of Layoff

  	
   

  	
  Benefit Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  54

  	
   

  	
  42.4

  	
  %

  
	
  53

  	
   

  	
  40.8

  	
  %

  
	
  52

  	
   

  	
  39.2

  	
  %

  
	
  51

  	
   

  	
  37.6

  	
  %

  
	
  50

  	
   

  	
  36.0

  	
  %

  
	
  49

  	
   

  	
  34.4

  	
  %

  
	
  48

  	
   

  	
  32.8

  	
  %

  
	
  47

  	
   

  	
  31.2

  	
  %

  
	
  46

  	
   

  	
  29.6

  	
  %

  
	
  45

  	
   

  	
  28.0

  	
  %

  
	
  44

  	
   

  	
  26.4

  	
  %

  
	
  43

  	
   

  	
  24.8

  	
  %

  
	
  42

  	
   

  	
  23.2

  	
  %

  
	
  41

  	
   

  	
  21.6

  	
  %

  
	
  40

  	
   

  	
  20.0

  	
  %

  
	
  39

  	
   

  	
  18.4

  	
  %

  
	
  38

  	
   

  	
  16.8

  	
  %

  
	
  37

  	
   

  	
  15.2

  	
  %

  
	
  36

  	
   

  	
  13.6

  	
  %

  
	
  35

  	
   

  	
  12.0

  	
  %

  
	
  34

  	
   

  	
  10.4

  	
  %

  
	
  33

  	
   

  	
  8.8

  	
  %

  
	
  32

  	
   

  	
  7.2

  	
  %

  
	
  31

  	
   

  	
  5.6

  	
  %

  
	
  30

  	
   

  	
  4.0

  	
  %

  
	
  29

  	
   

  	
  2.4

  	
  %

  
	
  28

  	
   

  	
  0.8

  	
  %

  

 

SECTION VI - BENEFIT AMOUNT

 

Notwithstanding anything to the
contrary in this Section VI, and subject to the AJCA Grandfather Provisions of
this Plan, the rules for calculating an eligible employee’s benefit will be applied
consistently with good faith compliance with section 409A of the Internal
Revenue Code of 1986 as amended; and any provisions of this Plan to the
contrary will be disregarded. An eligible employee who qualifies for benefits
under this Plan in accordance with Sections IV and V will be eligible to
receive retirement benefits from the Plan as follows:

 

A.         With respect to eligible
employees who commence retirement benefits on or after their Normal Retirement
Date - 

 

7

 

multiply the lesser of (a)(i) or (a) (ii) as computed in Sections IV or
V, as applicable, times the greater of the employee’s Final Average Earnings or
the employee’s Total Final Average Earnings and with the results reduced by the
portion of the eligible employee’s Primary Social Security benefit as
determined in the same manner as such reduction is determined under the Final
Average Earnings formula of the Retirement Income Plan.

 

B.          With respect to eligible
employees who commence retirement benefits at an Early Retirement Date -
benefits will be calculated in the same manner as the benefits for Normal Retirement
Date, as described in A. of this Section, but reduced for early retirement in
the same manner as is applicable under the Retirement Income Plan.

 

In either A. or B. above the
Retirement Income Plan calculations shall be made as if no benefit limitations
were imposed by the Internal Revenue Code and no benefit reductions resulted
from participation in any qualified or non-qualified Company-sponsored benefit
plan, and the resulting benefit amount will be reduced by applicable retirement
benefit payments for which the retiree is eligible from any of the following
plans, or any other similar plan or plans, of the Company or any of its
subsidiary or affiliated companies; Retirement Income Plan, Retirement
Restoration Plan of Phillips Petroleum Company, Key Employee Deferred
Compensation Plan of Phillips Petroleum Company, the Retirement Makeup Plan of

 

8

 

Phillips Petroleum Company,
Principal Corporate Officers Supplemental Retirement Plan of Phillips Petroleum
Company, the Phillips Petroleum Company Key Employee Death Protection Plan, the
Key Employee Supplemental Retirement Plan and the Key Employee Missed Credited
Service Retirement Plan.

 

SECTION VII - PAYMENT OF RETIREMENT BENEFITS

 

Subject to the AJCA Grandfather
provisions of the Plan, payment of benefits to eligible employees shall be as
follows:

 

A.         The
rules for payment of benefits to eligible employees listed on Schedule A
attached to this plan (“Schedule A Employees”) shall be as follows:

 

(1)         The
benefit shall be paid as a straight life annuity for the life of the Schedule A
Employee commencing in December, 2005, or if later, six months after Separation
from Service. The Plan shall pay simple interest at a rate of 3% per annum on
each delayed payment from the annuity starting date to December 1, 2005.

 

(2)         Provided,
however, notwithstanding subsection A.(1), (i) a Schedule A Employee who is
married may, on or before December 1, 2005, elect, in writing, to receive a 50%
joint and survivor annuity with the spouse as survivor commencing in December,
2005, with the rules regarding interest being as described in subsection (1)
above; and

 

9

 

(ii) Any Schedule A Employee may elect on or before December 1, 2005,
to cancel, in writing, participation in this Plan in which case the Schedule A
Employee shall receive the present value of his entire accrued benefit under
this Plan on or before December 31, 2005.

 

B.          Benefits
that commence under this Plan after 2005 for an eligible employee who is not a
Schedule A Employee shall be paid in a lump sum the later of the first day of
the first calendar month after the day the employee becomes age 55 (or, if the
Retirement Income Plan treats the Employee as turning age 55 before that birth
date, on the day he is treated as being age 55)  or the first day of the seventh calendar month
after Separation from Service as that term is defined in section 409A of the
Internal Revenue Code and regulatory guidance thereunder(excluding death) but
in no event before November 1, 2006. If the applicable commencement date is the
first day of the seventh calendar month after Separation from Service, the Plan
shall pay simple interest at the 6 month T-Bill rate (as determined by the Plan
Administrator) in effect as of the annuity starting date. Such interest shall
be paid from the annuity starting date used in calculating the benefit under
this Plan to the commencement date.

 

10

 

SECTION VIII - METHOD OF PROVIDING BENEFITS

 

This Plan shall be unfunded. All
benefits shall be provided solely from the general assets of the Company and
any rights accruing to an eligible employee under the Plan shall be those of a
general creditor; provided, however, that the Company may establish a grantor
trust to satisfy part or all of its Plan payment obligations so long as the
plan remains unfunded for purposes of Title I of ERISA.

 

SECTION IX - MISCELLANEOUS PROVISIONS

 

(a)         No right or interest of
an eligible employee under this Plan shall be assignable or transferable, in
whole or in part, directly or indirectly, by operation of law or otherwise
(excluding devolution upon death or mental incompetency).

 

(b)        Any claim for benefits
hereunder shall be presented in writing to the Plan Administrator for
consideration, grant or denial. In the event that a claim is denied in whole or
in part by the Plan Administrator, the claimant, within ninety days of receipt
of said claim by the Plan Administrator, shall receive written notice of denial.
Such notice shall contain:

 

(1)              a statement of the
specific reason or reasons for the denial;

 

(2)              specific references
to the pertinent provisions hereunder on which such denial is based;

 

(3)              a description of any
additional material or information necessary to perfect the claim and an
explanation of why such material or information is necessary; and

 

11

 

(4)              an explanation of
the following claims review procedure set forth in paragraph (c) below.

 

(c)         Any claimant who feels
that a claim has been improperly denied in whole or in part by the Plan
Administrator may request a review of the denial by making written application
to the Trustee. The claimant shall have the right to review all pertinent
documents relating to said claim and to submit issues and comments in writing
to the Trustee. Any person filing an appeal from the denial of a claim must do
so in writing within sixty days after receipt of written notice of denial. The
Trustee shall render a decision regarding the claim within sixty days after
receipt of a request for review, unless special circumstances require an
extension of time for processing, in which case a decision shall be rendered
within a reasonable time, but not later than 120 days after receipt of the
request for review. The decision of the Trustee shall be in writing and, in the
case of the denial of a claim in whole or in part, shall set forth the same
information as is required in an initial notice of denial by the Plan Administrator,
other than an explanation of this claims review procedure. The Trustee shall
have absolute discretion in carrying out its responsibilities to make its
decision of an appeal, including the authority to interpret and construe the
terms hereunder, and all interpretations, findings of fact, and the decision of

 

12

 

the Trustee regarding the appeal shall be final, conclusive and binding
on all parties.

 

(d)        Compliance with the
procedures described in paragraphs (b) and (c) shall be a condition precedent
to the filing of any action to obtain any benefit or enforce any right which
any individual may claim hereunder. Notwithstanding anything to the contrary in
this Plan, these paragraphs (b), (c) and (d) may not be amended without the
written consent of a seventy-five percent (75%) majority of Participants and
Beneficiaries and such paragraphs shall survive the termination of this Plan
until all benefits accrued hereunder have been paid.

 

(e)         The Chief Executive
Officer, may amend or terminate this Plan at any time if, in his or her sole
judgment such amendment or termination is deemed desirable. However, such
amendments may not increase the benefits payable hereunder to any Officer of
the Company who is also currently a Director of the Company.

 

(f)         No amount accrued or payable hereunder
shall be deemed to be a portion of an eligible employee’s compensation or
earnings for the purpose of any other employee benefit plan adopted or
maintained by the Company, nor shall this Plan be deemed to amend or modify the
provisions of the Retirement Income Plan.

 

(g)        Participation or
nonparticipation in this Plan shall not affect any eligible employee’s
employment status, or confer any special rights other than those expressly
stated in the Plan.

 

(h)        Except as otherwise
provided herein, the Plan shall be binding upon the Company, its successors and
assigns, including but not

 

13

 

limited to any corporation which may acquire all or substantially all
of the Company’s assets and business or with or into which the Company may be
consolidated or merged.

 

(i)          The Plan shall be
construed, regulated, and administered in accordance with the laws of the State
of Texas except to the extent that said laws have been preempted by the laws of
the United States.

 

SECTION X - EFFECTIVE DATE

 

This Plan became effective
January 1, 1987. This amendment and restatement of the Plan became effective
January 1, 2005.

 

 

CONOCOPHILLIPS

 

 

	
  By:

  	
  /s/ Carin S. Knickel

  	
   

  	
  Dated:

  	
  December 20, 2005

  	
   

  	
   

  	
   

  
	
   

  	
  Carin S.
  Knickel

  	
   

  
	
   

  	
  Vice
  President, Human Resources

  
									

 

14Exhibit 10.10

 

ORIGINAL FOR EXECUTION

APPROVED VICE PRESIDENT HUMAN RESOURCES

EFFECTIVE JANUARY 1, 2005

 

KEY EMPLOYEE MISSED CREDITED SERVICE RETIREMENT PLAN OF

CONOCOPHILLIPS

 

PURPOSE

 

The
purpose of the Key Employee Missed Credited Service Retirement Plan of ConocoPhillips
(the “Plan”) is to attract and retain key employees by restoring retirement
benefits which are missing for certain periods of Company service. This Plan is
intended to be and shall be administered as an unfunded benefit plan for a
select group of Highly Compensated Employees.

 

PRE-AMERICAN
JOBS CREATION ACT OF 2004 (“AJCA”)

GRANDFATHERED
PROVISIONS

 

Benefits
under this Plan, formerly the Key Employee Missed Credited Service Retirement
Plan of Phillips Petroleum Company, (the “Phillips Plan”), that commenced prior
to January 1, 2005 (“AJCA-grandfathered benefits”), shall be subject
exclusively to the terms and conditions of the Phillips Plan in effect or
before October 3, 2004. No change in the ConocoPhillips Retirement Plan adopted
subsequent to such date and no change in the Phillips Plan or in the Key
Employee Missed Credited Service Retirement Plan of ConocoPhillips adopted
after such date shall apply to an AJCA-grandfathered benefit. Provided,
however, for purposes of this paragraph, benefits shall be deemed to have
commenced prior to January 1, 2005 and shall be AJCA-grandfathered benefits if
the relevant corporate officer or committee approved the employee’s petition
regarding time and form of payment before January 1, 2005 even if the benefit
commenced after December 31, 2004. The “relevant corporate officer or committee”
means the person or persons

 

1

 

with
the authority under the Phillips Plan to approve a petition regarding the time
and form of payment.

 

SECTION
I. Definitions.

 

As
used in this Plan:

 

(a)           “Board” shall mean the board of directors of
the Company.

 

(b)           “Code” shall mean the Internal Revenue Code
of 1986, as amended from time to time.

 

(c)           “Committee” shall mean the Compensation
Committee of the Board of Directors of ConocoPhillips, a Delaware corporation.

 

(d)           “Company” shall mean a company or other
corporation which is a member of the control group of corporations (defined in
Code Section 414(b)) of which ConocoPhillips Company is a member.

 

(e)           “Employee” shall mean a person who is an
active participant in the Retirement Plan and who qualifies as a Highly
Compensated Employee who as of May 1, 1995 is classified on the Company’s
records as a job schedule 51 grades 32 and above, all schedule 66 job grades,
or a job schedule 70L grades 07 or 08.

 

(f)            “ERISA” shall mean the Employee Retirement
Income Security Act of 1974, as amended from time to time, or any successor
statute.

 

(g)           “Foreign Plan Offset” shall mean the amounts
of the vested monthly retirement income from the I.E.L. Pension Plan or foreign
retirement plans maintained or sponsored by the Company which is or would be
payable in the form of a single life annuity upon reaching normal retirement
age under such plans. If necessary, such retirement income shall be converted
into a dollar amount using the exchange rate for the effective date of the
Employee’s transfer onto the U.S. payroll (or the next business day rate if
there is no rate for that day) as published in the Wall Street Journal, and
shall be converted into a monthly

 

2

 

single
life annuity using the actuarial standards set out in Section 5 of Article V of
the Retirement Plan for a deemed commencement date as of the first day of the
month of transfer into the Retirement Plan. The Foreign Plan Offset shall be
limited to no more than the amount by which the Missed Credited Service
Retirement Benefit of the Employee would have been increased by the Missed
Credited Service Months attributable to the months of participation in the
I.E.L. Pension Plan or other foreign plans.

 

(h)           “Highly Compensated Employee” shall mean an
Employee who is Highly Compensated within the meaning of ERISA Sections 3(36)
and 4(b)(5) subject to Section IV.

 

(i)            “Incentive Compensation Plan” shall mean the
Incentive Compensation Plan of the Company, or the Annual Incentive
Compensation Plan of Phillips Petroleum Company, or similar plan of a
Participating Subsidiary, or any similar or successor plans, or all, as the
context may require.

 

(j)            “Missed Credited Service Months” shall mean
the number of months during any employment period with the Company not included
as Credited Service in the Retirement Plan as calculated in Section II.

 

(k)           “Missed Credited Service Retirement Benefit”
shall mean the supplemental retirement benefit that would be calculated under
the Retirement Plan using as Credited Service the Missed Credited Service
Months in addition to the Credited Service and using Total Final Average
Earnings, without regard for Internal Revenue Service limitations relating to
Code Sections 401(a)(17) or 415, and reduced by:

 

(1)           any offset applied to the retirement benefit
which would be payable at normal retirement age due to a Foreign Plan Offset or
due to withdrawals or benefit commencement from the Retirement Plan or the Key
Employee Supplemental Retirement Plan, made in the manner specified in the
Retirement Plan, and

 

(2)           retirement benefits payable from the
Retirement Plan and from the Key

 

3

 

Employee
Supplemental Retirement Plan.

 

(l)            “Participating Subsidiary” shall mean a
subsidiary of the Company, of which the Company beneficially owns, directly or
indirectly, more than 50% of the aggregate voting power of all outstanding
classes and series of stock, where such subsidiary has adopted one or more
plans making participants eligible for participation in this Plan.

 

(m)          “Plan” shall mean the Key Employee Missed
Credited Service Retirement Plan of ConocoPhillips, the terms of which are
stated in and by this document.

 

(n)           “Plan Administrator” shall mean the person
who is the highest level officer of the Company with primary responsibility for
human resources or such person’s successor.

 

(o)           “Retirement Plan” shall mean Title I of the
ConocoPhillips Retirement Plan (the Phillips Retirement Income Plan ), which is
qualified under Code Section 401(a). The following terms used in the Plan shall
be determined in accordance with the provisions of the Retirement Plan:

 

(1)           Approved Leave of Absence

 

(2)           Credited Service

 

(3)           Non-contributory Benefits Schedule and

 

(4)           Normal Retirement Date

 

(p)        “Total Final Average Earnings” shall mean the
average of the high 3 earnings, excluding Incentive Compensation Plan awards,
paid in consecutive years of the last 11 years, including the year prior in
which termination of employment occurs, plus the average of the high 3
Incentive Compensation awards for any of such last 11 years under the Incentive
Compensation Plan, whether paid or deferred, and shall include the value of any
special awards specified by the Committee to be included for final average
earnings purposes under the terms of the special awards when granted by the
Committee.

 

(q)        “Trustee” means the trustee of the grantor
trust established by the Trust Agreement

 

4

 

between
the Company and Wachovia Bank, N.A. dated as of June 1, 1998, or any successor
trustee.

 

SECTION
II. Eligibility for Benefits.

 

Each
Employee shall be eligible for a Missed Credited Service Retirement Benefit as
a result of Missed Credited Service Months for service with the Company
(provided that the full number of months as calculated below exceeds one)
during any period of employment on the direct payroll of the Company which is
not included as Credited Service under the other rules of the Retirement Plan,
except for months attributable to the following:

 

(a)           Service while classified as an employee
eligible for participation in the Retirement Savings Plan of Phillips Petroleum
Company or its predecessor plans,

 

(b)           Service with a company prior to its
acquisition by the Company,

 

(c)           Service while classified on Company’s records
as a Temporary or Intermittent employee prior to January 1, 1990,

 

(d)           Service as a non-managerial retail marketing
outlet employee,

 

(e)           Service in a category which is specifically
excluded from the Retirement Plan by the definition of Employee or by Article
II of the Retirement Plan at the time the person becomes an Employee, with the
exception of international expatriates and foreign nationals,

 

(f)            Periods while on an Approved Leave of
Absence,

 

(g)           Service as an employee who has commenced
retirement benefits on or after his earliest Early Retirement Date and thereafter
resumes employment duties with the Company,

 

(h)           Service associated with absence due to a
strike,

 

(i)            Periods associated with absence due to
discharge, or

 

5

 

(j)            An earlier employment period with the Company
followed by an absence from employment exceeding (i) 120 months from the end of
employment date if that date occurred on or before January 1, 1985, or (ii) 60
months from the end of employment date if that date occurred after January 1,
1985.

 

In calculating the Missed Credited Service Months
under this paragraph, the beginning and ending dates of an employment period
shall be deemed to be as follows:

 

	
  Actual Beginning or Ending
  Dates

  	
   

  	
  Deemed Date

  
	
   

  	
   

  	
   

  
	
  December
  17 through January 16

  	
   

  	
  January
  1

  
	
  January
  17 through February 16

  	
   

  	
  February
  1

  
	
  February
  17 through March 16

  	
   

  	
  March
  1

  
	
  March
  17 through April 16

  	
   

  	
  April
  1

  
	
  April
  17 through May 16

  	
   

  	
  May
  1

  
	
  May
  17 through June 16

  	
   

  	
  June
  1

  
	
  June
  17 through July 16

  	
   

  	
  July
  1

  
	
  July
  17 through August 16

  	
   

  	
  August
  1

  
	
  August
  17 through September 16

  	
   

  	
  September
  1

  
	
  September
  17 through October 16

  	
   

  	
  October
  1

  
	
  October
  17 through November 16

  	
   

  	
  November
  1

  
	
  November
  17 through December 16

  	
   

  	
  December
  1

  

 

For
the purposes of this Plan, the number of full months during any period of employment
will be determined by subtracting the beginning deemed date and actual year
from the ending deemed date and actual year. The Missed Credited Service Months
restored pursuant to the provisions of this Plan should be deemed to have been
completed under the Non-contributory Benefits Schedule of the Retirement Plan
but shall not entitle any

 

6

 

Employee
to current service benefits, as described in Article IV of the Retirement Plan,
with respect to such period.

 

SECTION
III.  Plan Benefits.

 

Notwithstanding
anything to the contrary in this Plan, and subject to the AJCA Grandfather
Provisions of this Plan, the rules for calculating an Employee’s benefit under
this Plan will be applied consistently with good faith compliance with section
409A of the Internal Revenue Code of 1986 as amended; and any provisions of
this Plan to the contrary will be disregarded.

 

The
present value of Supplemental payments will be made in a lump sum in the amount
of the Missed Credited Service Retirement Benefit to the Employee or the
Employee’s surviving spouse (in the case of the death of an Employee prior to the
date his benefit under this Plan would otherwise commence). If applicable, the
lump sum death benefit shall be paid to the surviving spouse on the first of
the month after the eligible employee’s death.

 

SECTION
IV.  Form and Payment of Benefits.

 

Subject
to the AJCA Grandfather provisions of this Plan, payment of benefits shall be
as follows:

 

A.            The rules for payment of benefits to
employees listed on Schedule A attached to this plan (“Schedule A Employees”)
shall be as follows:

 

(1)           The benefit shall be paid as a straight life
annuity for the life of the Schedule A Employee commencing in December, 2005,
or if later, six months after Separation from Service. The Plan shall pay
simple interest at a rate of 3% per annum on each delayed payment from the
annuity starting date to December 1, 2005.

 

7

 

(2)           Provided, however, notwithstanding subsection
A.(1),

 

(i)            a Schedule A Employee who is married may, on
or before December 1, 2005, elect, in writing, to receive a 50% joint and
survivor annuity with the spouse as survivor commencing in December, 2005, with
the rules regarding interest being as described in subsection (1) above; and

 

(ii)           Any Schedule A Employee may elect on or
before December 1, 2005, to cancel, in writing, participation in this Plan in
which case the Schedule A Employee shall receive the present value of his entire
accrued benefit under this Plan on or before December 31, 2005.

 

B.            Benefits that commence under this Plan after
2005 to an Employee who is not a Schedule A Employee shall be paid in a lump
sum on the later of the first day of the first calendar month after the day the
Employee becomes age 55 (or, if the Retirement Plan treats the Employee as
turning age 55 before that birth date, on the day he is treated as being age
55) or the first day of the seventh calendar month after Separation from
Service as that term is defined in section 409A of the Internal Revenue Code
and regulatory guidance thereunder (excluding death) but in no event before
November 1, 2006. If the applicable commencement date is the first day of the
seventh calendar month after Separation from Service, the Plan shall pay simple
interest at the 6 month T-Bill rate (as determined by the Plan Administrator)
in effect as of the annuity starting date. Such interest shall be paid from the
annuity starting date used in calculating the benefit under this Plan to the
commencement date.

 

SECTION
V. Method of Providing Benefits.

 

All
amounts payable under this Plan shall be paid solely from the general assets of
the Company

 

8

 

and
any rights accruing to an eligible Employee or Retiree under the Plan shall be
those of a general creditor; provided, however, that the Company may establish
a grantor trust to satisfy part or all of its Plan payment obligations so long
as the Plan remains an unfunded excess benefit plan for purposes of Title I of
ERISA.

 

SECTION
VI. Nonassignability.

 

The
right of an Employee, or beneficiary, or other person who becomes entitled to
receive payments under this Plan, shall not be assignable or subject to
garnishment, attachment or any other legal process by the creditors of, or
other claimants against, the Employee, beneficiary, or other such person.

 

SECTION
VII. Administration.

 

(a)           The Plan shall be administered by the Plan
Administrator. The Plan Administrator may adopt such rules, regulations and
forms as deemed desirable for administration of the Plan and shall have the
discretionary authority to allocate responsibilities under the Plan to such
other persons as may be designated, whether or not employee members of the
Board.

 

(b)           Any claim for benefits hereunder shall be
presented in writing to the Plan Administrator for consideration, grant or
denial. In the event that a claim is denied in whole or in part by the Plan
Administrator, the claimant, within ninety days of receipt of said claim by the
Plan Administrator, shall receive written notice of denial. Such notice shall
contain:

 

(1)           a statement of the specific reason or reasons
for the denial;

 

(2)           specific references to the pertinent
provisions hereunder on which such denial is based;

 

9

 

(3)           a description of any additional material or
information necessary to perfect the claim and an explanation of why such
material or information is necessary; and

 

(4)           an explanation of the following claims review
procedure set forth in paragraph (c) below.

 

(c)           Any claimant who feels that a claim has been
improperly denied in whole or in part by the Plan Administrator may request a
review of the denial by making written application to the Trustee. The claimant
shall have the right to review all pertinent documents relating to said claim
and to submit issues and comments in writing to the Trustee. Any person filing
an appeal from the denial of a claim must do so in writing within sixty days after
receipt of written notice of denial. The Trustee shall render a decision
regarding the claim within sixty days after receipt of a request for review,
unless special circumstances require an extension of time for processing, in
which case a decision shall be rendered within a reasonable time, but not later
than 120 days after receipt of the request for review. The decision of the
Trustee shall be in writing and, in the case of the denial of a claim in whole
or in part, shall set forth the same information as is required in an initial
notice of denial by the Plan Administrator, other than an explanation of this
claims review procedure. The Trustee shall have absolute discretion in carrying
out its responsibilities to make its decision of an appeal, including the
authority to interpret and construe the terms hereunder, and all
interpretations, findings of fact, and the decision of the Trustee regarding
the appeal shall be final, conclusive and binding on all parties.

 

(d)           Compliance with the procedures described in
paragraphs (b) and (c) shall be a condition

 

10

 

precedent
to the filing of any action to obtain any benefit or enforce any right which
any individual may claim hereunder. Notwithstanding anything to the contrary in
this Plan, these paragraphs (b), (c) and (d) may not be amended without the
written consent of a seventy-five percent (75%) majority of Participants and
Beneficiaries and such paragraphs shall survive the termination of this Plan
with all benefits accrued hereunder have been paid.

 

SECTION
VIII. Employment not Affected by Plan.

 

Participation
or nonparticipation in this Plan shall neither adversely affect any person’s
employment status, or confer any special rights on any person other than those
expressly stated in the Plan. Participation in the Plan by an Employee of the
Company or of a Participating Subsidiary shall not affect the Company’s or the
Participating Subsidiary’s right to terminate the Employee’s employment or to
change the Employee’s compensation or position.

 

SECTION
IX. Miscellaneous Provisions.

 

(a)           The Board reserves the right to amend or
terminate this Plan at any time, if, in the sole judgment of the Board, such
amendment or termination is deemed desirable; provided that the Company shall
remain liable for any benefits accrued under this Plan prior to the date of
amendment or termination.

 

(b)           Except as otherwise provided herein, the Plan
shall be binding upon the Company, its successors and assigns, including but
not limited to any corporation which may acquire all or substantially all of
the Company’s assets and business or with or into which the Company may be
consolidated or merged.

 

11

 

(c)           No amount accrued or payable hereunder shall
be deemed to be a portion of an Employee’s compensation or earnings for the
purpose of any other employee benefit plan adopted or maintained by the
Company, nor shall this Plan be deemed to amend or modify the provisions of the
Retirement Plan.

 

(d)           The Plan shall be construed, regulated, and
administered in accordance with the laws of the State of Texas except to the
extent that said laws have been preempted by the laws of the United States.

 

 

CONOCOPHILLIPS

 

 

	
  By:

  	
  /s/
  Carin S. Knickel

  	
   

  	
  Dated:

  	
  December
  20, 2005

  	
   

  
	
   

  	
  Carin S. Knickel

  
	
   

  	
  Vice President, Human
  Resources

  

 

12

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