Document:

exv10w5

 

Exhibit 10.5

CHEVRON CORPORATION

DEFERRED COMPENSATION PLAN

FOR MANAGEMENT EMPLOYEES II

Effective January 1, 2005

Amended and Restated December 7, 2005
Further amended
December 6, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	1.	 	ESTABLISHMENT AND PURPOSE	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	2.	 	DEFINITIONS	 	 	1	 
	 

	 	(a)
	 	“Account”
	 	 	1	 
	 

	 	(b)
	 	“Beneficiary”
	 	 	1	 
	 

	 	(c)
	 	“Board”
	 	 	1	 
	 

	 	(d)
	 	“Change in Control”
	 	 	1	 
	 

	 	(e)
	 	“Code”
	 	 	1	 
	 

	 	(f)
	 	“Committee”
	 	 	2	 
	 

	 	(g)
	 	“Corporation”
	 	 	2	 
	 

	 	(h)
	 	“Eligible Employee”
	 	 	2	 
	 

	 	(i)
	 	“Employee”
	 	 	2	 
	 

	 	(j)
	 	“ERISA”
	 	 	2	 
	 

	 	(k)
	 	“Long-Term Incentive Plan”
	 	 	2	 
	 

	 	(l)
	 	“Management Incentive Plan”
	 	 	2	 
	 

	 	(m)
	 	“Participant”
	 	 	2	 
	 

	 	(n)
	 	“Plan”
	 	 	2	 
	 

	 	(o)
	 	“Plan Year”
	 	 	2	 
	 

	 	(p)
	 	“Prior Plan”
	 	 	2	 
	 

	 	(q)
	 	“Rules”
	 	 	2	 
	 

	 	(r)
	 	“Subsidiary”
	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	3.	 	ADMINISTRATION	 	 	2	 
	 

	 	(a)
	 	The Committee
	 	 	2	 
	 

	 	(b)
	 	Actions by the Committee
	 	 	3	 
	 

	 	(c)
	 	Powers of the Committee
	 	 	3	 
	 

	 	(d)
	 	Liability of Committee Members
	 	 	3	 
	 

	 	(e)
	 	Administration of the Plan Following a Change in Control
	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	4.	 	PARTICIPATION	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	5.	 	DEFERRED COMPENSATION	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	6.	 	FORFEITURE	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	7.	 	AMENDMENT OR TERMINATION OF THE PLAN	 	 	5	 
	 
	 	 	 	 	 	 	 	 
	8.	 	GENERAL	 	 	6	 
	 

	 	(a)
	 	No Right of Employment
	 	 	6	 
	 

	 	(b)
	 	Designation of Beneficiaries
	 	 	6	 
	 

	 	(c)
	 	Domestic Relations Orders
	 	 	6	 
	 

	 	(d)
	 	Costs of the Plan
	 	 	6	 
	 

	 	(e)
	 	Severability
	 	 	6	 
	 

	 	(f)
	 	Binding Effect of Plan
	 	 	6	 

i

 

	 	 	 	 	 	 	 	 	 
	 

	 	(g)
	 	No Waiver of Breach
	 	 	7	 
	 

	 	(h)
	 	No Assignment
	 	 	7	 
	 

	 	(i)
	 	Applicable Law
	 	 	7	 
	 

	 	(j)
	 	Participant’s Rights Unsecured
	 	 	7	 
	 

	 	(k)
	 	Authority to Establish a Grantor Trust
	 	 	7	 
	 

	 	(l)
	 	Other Benefit Plans
	 	 	7	 

ii

 

CHEVRON CORPORATION

DEFERRED COMPENSATION PLAN

FOR MANAGEMENT EMPLOYEES II

Effective January 1, 2005

Amended and Restated December 7, 2005
Further amended
December 6, 2006

     1. ESTABLISHMENT AND PURPOSE.

     (a) The Chevron Corporation Deferred Compensation Plan for Management Employees II is
effective January 1, 2005 and is the successor plan to the Corporation’s Deferred Compensation Plan
for Management Employees (formerly the Salary Deferral Plan for Management Employees) (the “Prior
Plan”). Effective December 31, 2004, the Prior Plan was frozen and no new contributions shall be
made to it; provided, however, that any deferrals made under the Prior Plan before January 1, 2005
continue to be governed by the terms and conditions of the Prior Plan as in effect on December 31,
2004 or on the date of any later amendment, provided that such amendment is not a material
modification of the Prior Plan under Code section 409A and the regulations promulgated thereunder.

     (b) Any deferrals made under the Prior Plan after December 31, 2004 are deemed to have been
made under the Plan and all such deferrals are governed by the terms and conditions of the Plan as
it may be amended from time to time.

     (c) The Plan is designed to enhance the ability of the Corporation and its Subsidiaries to
attract, motivate and retain executive and other key employees.

     (d) The Plan is intended to qualify as an unfunded ERISA pension plan maintained by an
employer for a select group of management or highly compensated employees, as described in 26
C.F.R. § 2520.104-23(d) and to comply with the requirements of Code section 409A.

     2. DEFINITIONS.

     For purposes of the Plan, the following terms shall have the meanings set forth below:

     (a) “Account” means the bookkeeping account maintained on behalf of a Participant to
which shall be credited any amount described in Section 5.

     (b) “Beneficiary” means the person designated as such by the Participant pursuant to
Section 8(b).

     (c) “Board” means the Board of Directors of the Corporation.

     (d) “Change in Control” means a ‘change in control’ as that term is defined in Article
VI of the bylaws of the Corporation, as such bylaws may be amended from time to time.

     (e) “Code” means the Internal Revenue Code of 1986, as amended.

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     (f) “Committee” means the Committee appointed by the Board to administer the Plan as
provided in Section 3.

     (g) “Corporation” means Chevron Corporation, a Delaware corporation, or any successor
corporation.

     (h) “Eligible Employee” means an executive or other key employee (including an
officer, whether or not a director) of the Corporation or a Subsidiary who holds a position of
significant responsibility or whose performance or potential contribution, in the judgment of the
Committee, would benefit the future success of the Corporation and who is designated by the
Committee as eligible to participate in the Plan.

     (i) “Employee” means an individual who is a salaried employee on the payroll of the
Corporation or any Subsidiary.

     (j) “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     (k) “Long-Term Incentive Plan” means the Long-Term Incentive Plan of Chevron
Corporation, as amended from time to time.

     (l) “Management Incentive Plan” means the Management Incentive Plan of Chevron
Corporation, as amended from time to time.

     (m) “Participant” means an Eligible Employee described in Section 4.

     (n) “Plan” means the Chevron Corporation Deferred Compensation Plan for Management
Employees II, as set forth herein and as amended from time to time.

     (o) “Plan Year” means the calendar year.

     (p) “Prior Plan” means the Chevron Corporation Deferred Compensation Plan for
Management Employees.

     (q) “Rules” mean the rules promulgated by the Committee pursuant to the authority
granted in Section 3(c).

     (r) “Subsidiary” means any corporation or entity in which the Corporation directly or
indirectly controls more than 50% of the total voting power of all classes of its stock having
voting powers and which the Board has designated as a Subsidiary for purposes of the Plan.

     3. ADMINISTRATION.

     (a) The Committee.

     The Plan shall be administered by the Management Compensation Committee of the Board, or any
successor thereto. The Board may at any time replace the Management Compensation Committee with
another Committee.

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     (b) Actions by the Committee.

     The Committee shall hold meetings at such times and places as it may determine. Acts approved
by a majority of the members of the Committee present at a meeting at which a quorum is present, or
acts reduced to or approved in writing by a majority of the members of the Committee, shall be the
valid acts of the Committee.

     (c) Powers of the Committee.

     The Committee shall have the authority to administer the Plan in its sole discretion. To this
end, the Committee is authorized to construe and interpret the Plan, to promulgate, amend and
rescind Rules relating to the implementation of the Plan and to make all other determinations
necessary or advisable for the administration of the Plan, including the selection of Employees who
shall be eligible to participate in the Plan. Subject to the requirements of applicable law, the
Committee may designate persons other than members of the Committee to carry out its
responsibilities and may prescribe such conditions and limitations as it may deem appropriate. Any
determination, decision or action of the Committee in connection with the construction,
interpretation, administration, or application of the Plan shall be final, conclusive and binding
upon all persons participating in the Plan and any person validly claiming under or through persons
participating in the Plan.

     (d) Liability of Committee Members.

     No member of the Board or the Committee will be liable for any action or determination made in
good faith by the Board or the Committee with respect to the Plan.

     (e) Administration of the Plan Following a Change in Control.

     Within 30 days after the occurrence of a Change in Control, the Committee shall appoint an
independent organization which shall thereafter administer the Plan and have all of the powers and
duties formerly held and exercised by the Committee pursuant to Section 3(c) with respect to the
Plan. Upon such appointment, the Committee shall cease to have any responsibility with respect to
the administration of the Plan.

     4. PARTICIPATION.

     Each Eligible Employee who elects to defer base salary under the Plan in accordance with the
Rules or who makes a deferral election available under the terms of the Management Incentive Plan
or Long-Term Incentive Plan shall automatically become a Participant in the Plan.

     5. DEFERRED COMPENSATION.

     The Committee shall promulgate Rules governing (i) elections by Eligible Employees to defer
base salary and (ii) the establishment of Accounts to which shall be credited amounts deferred
pursuant to an election described in (i) or any deferral election made available under the terms of
the Management Incentive Plan or the Long-Term Incentive Plan, (iii) the crediting of interest or
earnings to such Accounts, and (iv) the time, form and value of distributions from such Accounts.

3

 

     6. FORFEITURE.

     (a) Notwithstanding any other provision of this Plan to the contrary, if a Participant engages
in Misconduct the Committee (or its delegate) may determine that any balance in the Participant’s
Account attributable to awards made under the Long-Term Incentive Plan or the Management Incentive
Plan on or after June 29, 2005 and the date of the Participant’s Misconduct shall be forfeited.

     (b) For this purpose, “Misconduct” means that:

          (1) the Corporation has been required to prepare an accounting restatement due to material
noncompliance, as a result of misconduct, with any financial reporting requirement under the
securities laws, and the Administrator (or its delegate) has determined in its sole discretion that
a Participant (i) had knowledge of the material noncompliance or the circumstances that gave rise
to such noncompliance and failed to take reasonable steps to bring it to the attention of
appropriate individuals within the Corporation or (ii) personally and knowingly engaged in
practices which materially contributed to the circumstances that enabled a material noncompliance
to occur; or

          (2) a Participant discloses to others, or takes or uses for his or her own purpose or the
purpose of others, any trade secrets, confidential information, knowledge, data or know-how or any
other proprietary information or intellectual property belonging to the Corporation and obtained by
the Participant during the term of his or her employment, whether or not they are the Participant’s
work product. Examples of such confidential information or trade secrets include, without
limitation, customer lists, supplier lists, pricing and cost data, computer programs, delivery
routes, advertising plans, wage and salary data, financial information, research and development
plans, processes, equipment, product information and all other types and categories of information
as to which the Participant knows or has reason to know that the Corporation intends or expects
secrecy to be maintained; or

          (3) a Participant fails to promptly return all documents and other tangible items belonging to
the Corporation in the Participant’s possession or control, including all complete or partial
copies, recordings, abstracts, notes or reproductions of any kind made from or about such documents
or information contained therein, upon termination of employment, whether pursuant to retirement or
otherwise; or

          (4) a Participant directly or indirectly engages in, becomes employed by, or renders services,
advice or assistance to any business in competition with the Corporation at any time during the
twelve months following termination of employment with the Corporation. As used herein, “business
in competition” means any person, organization or enterprise which is engaged in or is about to
become engaged in any line of business engaged in by the Corporation at the time of the termination
of the Participant’s employment with the Corporation; or

          (5) a Participant fails to inform any new employer, before accepting employment, of the terms
of this section and of the Participant’s continuing obligation to maintain the confidentiality of
the trade secrets and other confidential information belonging to the Corporation and obtained by
the Participant during the term of his or her employment with the Corporation; or

4

 

          (6) a Participant induces or attempts to induce, directly or indirectly, any of the
Corporation’s customers, employees, representatives or consultants to terminate, discontinue or
cease working with or for the Corporation, or to breach any contract with the Corporation, in order
to work with or for, or enter into a contract with, the Participant or any third party; or

          (7) a Participant engages in conduct which is not in good faith and which disrupts, damages,
impairs or interferes with the business, reputation or employees of the Corporation; or

          (8) a Participant committed an act of embezzlement, fraud or theft with respect to the
property of the Corporation.

     The Committee (or its delegate) shall determine in its sole discretion whether the Participant
has engaged in any of the acts set forth in subsections 1 through 8 above, and its determination
shall be conclusive and binding on all interested persons.

     In addition, until a Participant’s Account is delivered or distributed, such Account is
subject to forfeiture if the Participant is indebted to the Corporation or a Subsidiary at the time
when the Account becomes payable or distributable. In such case, the Account, to the extent that
the amount thereof (determined as of the date payment is scheduled to be made) does not exceed such
indebtedness shall be forfeited, and the Participant’s indebtedness to the Corporation or
Subsidiary shall be extinguished to the extent of such forfeiture.

     Any provision of this Section 6 which is determined by a court of competent jurisdiction to be
invalid or unenforceable should be construed or limited in a manner that is valid and enforceable
and that comes closest to the business objectives intended by such invalid or unenforceable
provision, without invalidating or rendering unenforceable the remaining provisions of this Section
6.

     7. AMENDMENT OR TERMINATION OF THE PLAN.

     Except as otherwise provided in this Section 7, the Board may amend, suspend or terminate the
Plan at any time. In the event of such termination, the Accounts of Participants shall be paid at
such times and in such forms as shall be determined pursuant to the Rules. No amendment,
suspension or termination (other than an amendment to discontinue future salary deferrals) approved
by the Board after six months prior to the public announcement of a proposed transaction which,
when effected, is a Change in Control or before the date which is two years after the date of a
Change in Control (the ‘Benefit Protection Period’) shall be valid or effective if such amendment,
suspension or termination would alter the terms of these resolutions or adversely affect the amount
of a Participant’s Account under the Plan, whether or not the Participant’s employment had
terminated at the time the amendment, suspension or termination was approved; provided, however,
any amendment, suspension or termination may be effected, even if so approved after such a public
announcement, if (a) the amendment, suspension or termination is approved after any plans have been
abandoned to effect the transaction which, if effected, would have constituted a Change in Control
and the event which would have constituted the Change in Control has not occurred, and (b) within a
period of six months after such approval, no other event constituting a Change in Control shall
have occurred, and no public announcement of a proposed event which would constitute a Change in
Control shall have

5

 

been made, unless thereafter any plans to effect the Change in Control have been abandoned and
the event which would have constituted the Change in Control has not occurred. Any amendment,
suspension or termination of the Plan which is so approved prior to a Change in Control at the
request of a third party who effectuates a Change in Control shall be deemed to be an amendment,
suspension or termination approved during the Benefit Protection Period.

     8. GENERAL.

     (a) No Right of Employment.

     Nothing contained in the Plan nor any action of the Committee pursuant to the Plan shall give
any employee any right to remain in the employ of the Corporation or to impair the Corporation’s
right to terminate the employment of any employee at any time, with or without cause, which right
is hereby reserved.

     (b) Designation of Beneficiaries.

     Participants may designate on the prescribed form one or more Beneficiaries to whom
distribution shall be made of any outstanding Account balance at the time of the Participant’s
death. A Participant may change such designation at any time by filing the prescribed form in the
manner prescribed by the Committee. If a Beneficiary has not been designated or if no designated
Beneficiary survives the Participant, distribution will be made to the Participant’s surviving
spouse as Beneficiary if then living or, if not living or if none, in equal shares to the then
living children of the Participant as Beneficiaries or, if none, to the Participant’s estate as
Beneficiary.

     (c) Domestic Relations Orders.

     The procedures established by the Corporation for the determination of the qualified status of
domestic relations orders and for making distributions under qualified domestic relations orders,
as provided in Section 206(d) of ERISA, shall apply to the Plan to the extent that such procedures
are consistent with Code section 409A.

     (d) Costs of the Plan.

     The costs and expenses of administering the Plan shall be borne by the Corporation.

     (e) Severability.

     The provisions of the Plan shall be deemed severable and the validity or unenforceability of
any provision shall not affect the validity or enforceability of the other provisions hereof.

     (f) Binding Effect of Plan.

     The Plan shall be binding upon and shall inure to the benefit of the Corporation, its
successors and assigns, and the Corporation shall require any successor or assign to expressly
assume and agree to perform the Plan in the same manner and to the same extent that the Corporation
would be required to perform it if no such succession or assignment had taken place. The term “the
Corporation” as used herein shall include such successors and assigns. The term

6

 

“successors and assigns” as used herein shall mean a corporation or other entity acquiring all
or substantially all the assets and business of the Corporation (including the Plan) whether by
operation of law or otherwise.

     (g) No Waiver of Breach.

     No waiver by either party hereto at any time of any breach by the other party hereto of, or
compliance with, any condition or provision of the Plan to be performed by such other party shall
be deemed a waiver of similar or dissimilar provisions of conditions at the same or at any prior or
subsequent time.

     (h) No Assignment.

     The interest and property rights of any Participant under the Plan shall not be subject to
option nor be assignable either by voluntary or involuntary assignment or by operation of law,
including (without limitation) bankruptcy, garnishment, attachment or other creditor’s process, and
any act in violation of this Section 8(h) shall be void.

     (i) Applicable Law.

     The Plan shall be administered, construed and governed in accordance with ERISA and Code
section 409A and, to the extent not preempted by ERISA, the laws of the State of California.

     (j) Participant’s Rights Unsecured.

     This Plan is not intended and shall not be construed to require the Corporation to fund any of
the benefits provided hereunder or to establish a trust for such purpose. The interest under the
Plan of any Participant and such Participant’s right to receive a distribution of his or her
Account shall be an unsecured claim against the general assets of the Corporation. The Account
shall be a bookkeeping entry only and no Participant shall have any interest in or claim against
any specific asset of the Corporation pursuant to the Plan.

     (k) Authority to Establish a Grantor Trust.

     The Committee is authorized in its sole discretion to establish a grantor trust for the
purpose of providing security for the payment of benefits under the Plan; provided, however, that
no Participant shall be considered to have a beneficial ownership interest (or any other sort of
interest) in any specific asset of the Corporation or of its subsidiaries or affiliates as a result
of the creation of such trust or the transfer of funds or other property to such trust.

     (l) Other Benefit Plans.

     To the extent permitted by applicable law, a Participant’s deferral elections made pursuant to
this Plan shall be disregarded for purposes of determining the Participant’s benefits under any
other benefit plan or program established or maintained by the Corporation or its Subsidiaries.

7exv10w6

 

Exhibit 10.6

CHEVRON CORPORATION

NON-EMPLOYEE DIRECTORS’ EQUITY COMPENSATION AND DEFERRAL PLAN

As Adopted by the Board of Directors Effective March 26, 2003 and

Approved by the Stockholders on May 22, 2003, and as

Amended and Restated on December 6, 2006 to be Effective January 1, 2005

	1.	 	PURPOSE.

The Chevron Corporation Non-Employee Directors’ Equity Compensation and Deferral Plan is a
merger and an amendment and restatement of the Chevron Restricted Stock Plan for
Non-Employee Directors and the Chevron Corporation Deferred Compensation Plan for Directors.
The purposes of the Plan are to attract and retain qualified individuals not employed by
Chevron Corporation or its subsidiaries or affiliates to serve on the Board of Directors of
the Corporation and to align the interests of such Directors with those of the stockholders
of the Corporation.

	2.	 	DEFINITIONS.

For purposes of the Plan, the following terms shall have the meanings set forth below:

	(a)	 	“Account” means the bookkeeping account maintained on behalf of a Director to which
shall be credited any amount described in Section 9.
	 
	(b)	 	“Annual Meeting” means the annual meeting of the stockholders of the Corporation.
	 
	(c)	 	“Annual Cash Retainer” means any yearly fees, including the Committee chair retainer,
payable in cash to a Director for service as a non-employee Director during a 12-month period.
	 
	(d)	 	“Award” or “Awards” means a grant of an Option, Restricted Stock or Stock
Units under the Plan.
	 
	(e)	 	“Board” means the Board of Directors of the Corporation.
	 
	(f)	 	“Change in Control” shall have the meaning set forth in Article VI of the By-Laws of
the Corporation, as such By-Laws may be amended from time to time.
	 
	(g)	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	(h)	 	“Committee” means the Board Nominating and Governance Committee.
	 
	(i)	 	“Common Stock” means the $0.75 par value common stock of the Corporation or any
security of the Corporation identified by the Committee as having been issued in substitution,
exchange or lieu thereof.

1

 

	(j)	 	“Corporation” means Chevron Corporation, a Delaware corporation, or any successor
corporation.
	 
	(k)	 	“Director” means a member of the Board who is not employed by the Corporation or its
subsidiaries or affiliates.
	 
	(l)	 	“Disability” means a condition which causes a Director to be unable, by reason of any
medically determinable physical or mental impairment which can be expected to last for a
continuous period of not less than 12 months, to engage in any essential activity required of
a Director. Whether a Director has a Disability shall be determined by the Committee on the
basis of competent medical evidence.
	 
	(m)	 	“Discretionary Transaction” shall mean a transaction pursuant to any benefit plan
that: (i) is at the volition of a plan participant; (ii) is not made in connection with the
participant’s death, disability, retirement or termination of employment; (iii) is not
required to be made available to a plan participant pursuant to a provision of the Internal
Revenue Code; and (iv) results in either an intra-plan transfer involving an equity securities
fund of the Corporation, or a cash distribution funded by a volitional disposition of an
equity security of the Corporation, or otherwise as such term is defined under Rule
16b-3(b)(1) of the Exchange Act or successor provision thereto.
	 
	(n)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, or any successor statute.
	 
	(o)	 	“Fair Market Value” of a Share as of a specified date means the price per share at
which Shares were traded at the close of business on such date as reported on the New York
Stock Exchange (or other established exchange or exchanges) or, if no trading of Common Stock
is reported for that day, the preceding day on which trading was reported.
	 
	(p)	 	“Option” means a nonstatutory stock option awarded pursuant to the Plan. “Option
Agreement” means the agreement between the Corporation and the Director that contains the
terms and conditions pertaining to an Option.
	 
	(q)	 	“Plan” means the Chevron Corporation Non-Employee Directors’ Equity Compensation and
Deferral Plan, as amended from time to time.
	 
	(r)	 	“Restricted Stock” means Shares awarded pursuant to Section 7.
	 
	(s)	 	“Restriction Period” means the period of time commencing with the date of grant of a
Restricted Stock Award and ending on the date on which all Shares of Restricted Stock in such
Award either vest or are forfeited.
	 
	(t)	 	“Rules” means regulations and rules adopted from time to time by the Committee to
interpret or administer the Plan.
	 
	(u)	 	“Share” means one share of Common Stock, adjusted in accordance with Section 10 (if
applicable).

2

 

	(v)	 	“Stock Unit” means a right to receive, in accordance with the provisions set forth
herein and in the Rules, a Share.
	 

	3.	 	ADMINISTRATION.

	 	(a)	 	Composition and Powers of the Committee.

	 	 	 	Unless otherwise designated by the Board, the Plan shall be administered by the
Board Nominating and Governance Committee. The Committee shall have the power to
construe and interpret the Plan and the Rules and to make all other determinations
necessary for the administration of the Plan. Subject to the requirements of
applicable law, the Committee may designate persons other than members of the
Committee to carry out its responsibilities and may prescribe such conditions and
limitations as it may deem appropriate. Any determination, decision or action of
the Committee in connection with the construction, interpretation, administration or
application of the Plan shall be final, conclusive and binding on all persons. The
Committee shall consist of two or more Directors who satisfy the requirements of
Rule 16b-3 (or its successor) under the Exchange Act to the extent necessary for
grants of Awards to the Directors under Section 16 of the Exchange Act.

	 	(b)	 	Liability of Board and Committee Members.
	 	 	 	No member of the Board or the Committee shall be liable for any action or
determination made in good faith by the Board or the Committee with respect to the
Plan or any Award under it.

	 	(c)	 	Administration of the Plan Following a Change in Control. 
	 	 	 	Within 30 days after the occurrence of a Change in Control, the Committee shall
appoint an independent organization which shall thereafter administer the Plan and
have all of the powers and duties formerly held and exercised by the Committee with
respect to the Plan as provided in Section 3(a). Upon such appointment, the
Committee shall cease to have any responsibility with respect to the administration
of the Plan.

	4.	 	DURATION OF THE PLAN AND SHARES SUBJECT TO THE PLAN.

	 	(a)	 	Duration of the Plan.
	 	 	 	The Plan shall remain in effect until terminated by the Board.

	 	(b)	 	Shares Subject to the Plan.
	 	 	 	The maximum number of Shares for which Awards may be granted under the Plan is
800,000 Shares (adjusted for the two-for-one stock split dated September 10, 2004),
including the number of Shares previously authorized for use but unissued pursuant
to the Chevron Restricted Stock Plan for Non-Employee

3

 

	 	 	 	Directors. The limitation set forth in this Section 4(b) shall be subject to
adjustment as provided in Section 10.

	 	(c)	 	Accounting for Numbers of Shares.
	 	 	 	For the purpose of computing the total number of Shares available for Awards under
the Plan there shall be counted against the limitation under the Plan the number of
Shares issued or subject to issuance upon exercise or settlement of Options and
Restricted Stock Awards granted and the number of Shares that equals the number of
Stock Units granted, determined as of the dates on which Stock Unit Awards are
granted. Dividends paid, dividend equivalents granted and interest or other amounts
credited with respect to any Award outstanding under the Plan shall not apply
against the Plan limitation.

	 	 	 	If Stock Units, Restricted Stock or Shares issued upon the exercise of Options are
forfeited or otherwise terminated before exercise or settlement, then the
corresponding Shares shall again become available for Awards under the Plan. If
Stock Units are settled, then only the number of Shares (if any) actually issued in
settlements of such Stock Units shall reduce the number available for
Awards.

	 	(d)	 	Source of Stock Issued Under the Plan.
	 	 	 	Common Stock issued under the Plan may be either authorized and unissued Shares or
issued Shares that have been reacquired by the Corporation, as determined in the
sole discretion of the Committee. No fractional Shares shall be issued under the
Plan.

	5.	 	PERSONS ELIGIBLE FOR AWARDS.

Members of the Board who are not employees of the Corporation or its subsidiaries or
affiliates are eligible for Awards. A Director may receive more than one Award, including
Awards of the same type, subject to the restrictions of the Plan.

	6.	 	OPTIONS.

Each Director may be awarded an Option to purchase that number of Shares determined pursuant
to the Rules. All such Options shall be subject to the following terms and conditions and
shall contain such additional terms and conditions, not inconsistent with the express
provisions of the Plan, as the Committee in its sole discretion shall deem desirable.

	 	(a)	 	Option Awards.
	 	 	 	The terms of each Option shall be set forth in an Option Agreement, which shall
contain such provisions not inconsistent with the terms of the Plan, including,
without limitation, restrictions upon the exercise of the Option, as the Committee
shall deem advisable in its sole discretion. Any Option may be sold, assigned,

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	 	 	 	transferred, pledged or otherwise encumbered only as specifically permitted in the
Rules.

	 	(b)	 	Number of Shares Covered by Option.
	 	 	 	Each Option shall state the number of Shares to which it pertains and shall provide
for the adjustment thereof in accordance with the provisions of Section 10. No
fractional Shares shall be issued pursuant to the exercise of an
Option.

	 	(c)	 	Exercise Price.
	 	 	 	The exercise price of each Share covered by an Option shall be one hundred percent
(100%) of the Fair Market Value of a Share on the date the Option is awarded.

	 	(d)	 	Rights as a Stockholder.
	 	 	 	A Director who has been awarded an Option or any transferee of an Option (to the
extent transfers of an Option are permitted under the Rules) shall have no rights
with respect to any Shares covered by his or her Option until the date such interest
is recorded as a book entry on the records of the Corporation. No adjustment shall
be made for dividends (ordinary or extraordinary, whether in cash, securities or
other property) or distributions or other rights for which the record date is prior
to the date the Director’s interest is recorded as a book entry on the records of
the Corporation, except as provided elsewhere in this Plan or in the Rules.

	 	(e)	 	Nonstatutory Stock Options.
	 	 	 	All Options shall be designated as nonstatutory stock options which do not qualify
as incentive stock options under Section 422 of the Code.

	7.	 	RESTRICTED STOCK.

Awards of Restricted Stock shall be subject to the following terms and conditions and to
such additional terms and conditions, not inconsistent with the express provisions of the
Plan, as the Committee in its sole discretion shall deem desirable.

	 	(a)	 	Awards.
	 	 	 	As of the date of each Annual Meeting at which a Director is elected to serve on the
Board, each such Director shall receive an Award of a specified number of shares of
Restricted Stock, the number to be determined by the Board in its sole discretion by
resolution adopted on or before the date of the applicable Annual Meeting. This
annual Restricted Stock Award shall be subject to adjustment as provided in Section
10.

	 	(b)	 	Terms and Conditions of Awards.

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	 	 	 	The terms of each Restricted Stock Award shall be set forth in Rules, which Rules
shall contain such provisions (including, without limitation, rules regarding
vesting and forfeiture) as the Committee determines to be necessary or appropriate
to carry out the intent of the Plan with respect to such Award. Except as otherwise
provided in the Rules, any Restricted Stock Award may not be sold, assigned,
transferred, pledged or otherwise encumbered prior to the date all applicable
restrictions lapse. The Corporation shall maintain in its records a book entry
account to which the Shares represented by each Restricted Stock Award shall be
credited. The shares in the book entry account represented by such Restricted Stock
Award shall be subject to the terms, conditions, and restrictions applicable to such
Award. The Committee shall require that no change shall be made in the book entry
account representing a Restricted Stock Award until the restrictions thereon shall
have lapsed. At that time, a book entry shall be made in the records of the
Corporation in the name of the Director in the amount of Shares as to which the
restrictions have lapsed.

	 	(c)	 	Stockholders’ Rights.
	 	 	 	Except as provided in the Rules, the holders of Restricted Stock Awards shall have
the same voting, dividend and other rights as the Corporation’s
other stockholders.

	8.	 	STOCK UNITS.

	 	(a)	 	Awards.
	 	 	 	Each Stock Unit Award shall be subject to the terms and conditions set forth in the
Rules.

	 	(b)	 	Number of Shares Covered by Stock Units.
	 	 	 	As of the date of each Annual Meeting at which a Director is elected to serve on the
Board until the following Annual Meeting, each such Director shall receive an Award
of a specified number of Stock Units, the number and time of award to be determined
by resolution adopted by the Board on or before the date of the applicable Annual
Meeting. Stock Unit Awards shall be subject to adjustment as provided in Section
10.

	 	(c)	 	Terms and Conditions.
	 	 	 	In addition to the terms and conditions specified in the Rules, Stock Unit Awards
made pursuant to this Section 8 shall be subject to the following:

	 	(i)	 	Except as otherwise provided in the Rules, any Stock Unit Award
may not be sold, assigned, transferred, pledged or otherwise encumbered prior
to the date on which the Shares are issued or the Award becomes payable.

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	 	(ii)	 	The Rules shall contain provisions dealing with the disposition
of Stock Unit Awards in the event of a termination of an individual’s status as
a Director.

	 	(d)	 	Stockholders’ Rights.
	 	 	 	Unless and until such time as a Director receives a distribution of all or a portion
of a Stock Unit Award in the form of Shares and prior to the date the Director’s
interest in such Shares is recorded as a book entry on the records of the
Corporation, the Director shall have no dividend rights, voting rights or other
rights as a stockholder with respect to such Shares covered by his or her Stock Unit
Award. The holders of Stock Units shall have no voting rights. Prior to settlement
or forfeiture, if the Rules so provide, any Stock Unit awarded under the Plan may
carry with it dividend equivalents. Such right entitles the holder to be credited
with an amount equal to all cash dividends paid on one Share while such Stock Unit
is outstanding. Dividend equivalents may be converted into additional Stock Units,
as provided in the Rules.

	 	(e)	 	Stock Unit Accounts.
	 	 	 	The “stock unit account” of each Director who received an award of “stock units”
under the Chevron Corporation Restricted Stock Plan for Non-Employee Directors with
respect to service as a Director prior to the 1997 Annual Meeting shall continue to
be maintained pursuant to the terms of such plan as in effect prior to April 30,
1997.

	9.	 	DEFERRED COMPENSATION.

	 	(a)	 	Optional Deferral. A Director may elect to defer receipt of all or a
portion of the Annual Cash Retainer.
	 
	 	(b)	 	Rules Regarding Deferrals. The Committee shall promulgate Rules, in
accordance with Section 409A of the Code, governing (i) elections by Directors to defer
all or any part of the Director’s Annual Cash Retainer, (ii) the establishment of
Accounts to which shall be credited amounts deferred, (iii) the designation of
investments to be used to measure the value of such Accounts, (iv) the crediting of
interest or earnings to such Accounts, and (v) the time, form and value of
distributions from such Accounts.

	10.	 	RECAPITALIZATION.
	 	 	Subject to any required action by the stockholders, the number of Shares covered by the Plan
as provided in Section 4, the number of Shares covered by or referred to in each outstanding
Award and the exercise price, if applicable, of each outstanding Award shall be
proportionately adjusted for: (a) any increase or decrease in the number of issued and
outstanding Shares resulting from a subdivision or combination or consolidation of issued
and outstanding Shares by reclassification or otherwise, (b) the payment of a stock dividend
(but only of Common Stock) or any other increase or decrease in the
number of

7

 

 
	 	 	such Shares effected without receipt of consideration by the Corporation, (c) the
declaration of a dividend payable in a form other than Shares in an amount that has a
material effect on the price of issued Shares, or (d) a recapitalization, spinoff or similar
occurrence.

	 	 	In the event of a dissolution or liquidation of the Corporation or a merger, consolidation
or other reorganization, the Shares subject to each non-vested Award shall be handled in
accordance with the terms of the agreement of merger, consolidation or reorganization which
may provide for the full vesting, cash-out or assumption of such Awards.

	 	 	The Committee shall prescribe Rules governing the adjustment of the number of Shares covered
by the Plan as provided in Section 4, the number of Shares covered by or referred to in each
outstanding Award and the exercise price, if applicable, of each outstanding Award in the
event that preferred stock purchase rights issued pursuant to any stockholder rights plan
detach from the Common Stock and become exercisable.

	 	 	Except as provided in this Section 10, a Director shall have no rights by reason of any
subdivision or consolidation of shares of stock of any class, the payment of any dividend or
any other increase or decrease in the number of shares of stock of any class. Except as
provided in this Section 10, any issue by the Corporation of shares of stock of any class,
or securities convertible into shares of stock of any class, shall not affect, and no
adjustment by reason thereof shall be made with respect to, the number or exercise price of
Shares subject to an Award. The grant of an Award pursuant to the Plan shall not affect in
any way the right or power of the Corporation to make adjustments, reclassifications, or
reorganizations or changes of its capital or business structure, to merge or consolidate or
to dissolve, liquidate, sell or transfer all or any part of its business or assets.

	11.	 	SECURITIES LAW REQUIREMENTS.
	 	 	No Shares shall be issued and no Options shall become exercisable pursuant to the Plan
unless and until the Corporation has determined that: (i) it and the Director have taken
all actions required to register the Shares under the Securities Act of 1933, as amended, or
perfect an exemption from the registration requirements thereof; (ii) any applicable listing
requirement of any stock exchange on which the Common Stock is listed has been satisfied;
and (iii) any other applicable provision of state or federal law
has been satisfied.

	12.	 	AMENDMENTS OF THE PLAN AND AWARDS.

	 	(a)	 	Plan Amendments.
	 	 	 	The Board may, insofar as permitted by law, from time to time and in its discretion,
with respect to any Shares at the time not subject to Awards, suspend the Plan or
revise or amend it in any respect whatsoever without stockholder approval. However,
unless the Board specifically otherwise provides, any revision or amendment that
would cause the Plan to fail to comply with any requirement of applicable law or
regulation if such amendment were not approved

8

 

	 	 	 	by the stockholders of the Corporation shall not be effective unless and until the
approval of the stockholders of the Corporation is obtained.

	 	(b)	 	Amendments of Awards.
	 	 	 	Subject to the terms and conditions and within the limitations of the Plan, the
Board may amend, cancel, modify, extend or renew outstanding Awards granted under
the Plan, or accept the exchange of outstanding non-vested Awards (to the extent not
theretofore exercised) for the granting of new Awards in substitution
therefor.

	 	(c)	 	Rights of Directors.
	 	 	 	No amendment, suspension or termination of the Plan nor any amendment, cancellation
or modification of any Award outstanding under it that would adversely affect the
right of any Director in an Award previously granted under the Plan shall be
effective without the written consent of the affected Director.

	13.	 	TERMINATION OF THE PLAN

	 	(a)	 	Termination.
	 	 	 	The Committee may terminate the Plan at any time. In the event of termination of
the Plan, any deferred amounts may be distributed within the period beginning twelve
months after the date the Plan was terminated and ending twenty-four months after
the date the Plan was terminated, or pursuant to Sections IV-VI of the Rules, if
earlier. If the Plan is terminated and deferred amounts are distributed, the
Corporation shall terminate all account balance non-qualified deferred compensation
plans with respect to all participants and shall not adopt a new account balance
non-qualified deferred compensation plan for at least five years after the date the
Plan was terminated.

	 	(b)	 	Dissolution or Bankruptcy
	 	 	 	The Plan shall automatically terminate upon a dissolution of the Corporation that is
taxed under Code section 331 or with the approval of a bankruptcy court pursuant to
11 U.S.C. section 503(b)(1)(A), provided that the deferred amounts are distributed
and included in the gross income of the Directors by the latest of (i) the calendar
year in which the Plan terminates or (ii) the first calendar year in which payment
of the deferred amounts is administratively practicable.

	14.	 	GENERAL PROVISIONS.

	 	(a)	 	Application of Funds.
	 	 	 	The proceeds received by the Corporation from the sale of Common Stock pursuant to
the exercise of an Option shall be used for general corporate purposes.

9

 

	 	(b)	 	Creditors’ Rights.
	 	 	 	Directors shall have no rights other than those of a general creditor of the
Corporation with respect to Stock Unit Awards and any Account established pursuant
to Section 9. These interests shall represent unfunded and unsecured obligations of
the Corporation, subject to the terms and conditions of the
applicable Rules.

	 	(c)	 	No Obligation to Exercise Option.
	 	 	 	The award of an Option shall impose no obligation upon the Director to exercise such
Option.

	 	(d)	 	Costs of the Plan.
	 	 	 	The costs and expenses of administering the Plan shall be borne by the Corporation.

	 	(e)	 	Director’s Beneficiary.
	 	 	 	The Rules may provide that a Director may designate a beneficiary with respect to
any Award in the event of death of such Director. If such beneficiary is the
executor or administrator of the estate of the Director, any rights with respect to
such Award may be transferred to the person or persons or entity (including a trust,
if permitted under the Rules) entitled thereto by bequest of or inheritance from the
holder of such Award.

	 	(f)	 	Prohibition of Opposite Way Transactions.
	 	 	 	To the extent any transactions executed by a Director in securities of the
Corporation would be considered a non-exempt purchase or sale of an equity security
of the Corporation for purposes of the short-swing profit recovery provisions of
Section 16(b) of the Exchange Act, such Director shall be prohibited from executing,
or electing to enter into, any transaction relating to or resulting from Awards
under this Plan that would be considered an opposite way transaction within six
months from such prior non-exempt transaction.

	 	 	 	In addition, a Director shall be prohibited from engaging in, or electing to engage
in, a Discretionary Transaction under the Plan if the election to engage in such
transaction is less than six months after an election to engage in an opposite way
Discretionary Transaction under any benefit plan of the Corporation, including this
Plan.

	 	(g)	 	Severability.
	 	 	 	The provisions of the Plan shall be deemed severable and the validity or
unenforceability of any provision shall not affect the validity or enforceability of
the other provisions hereof.

10

 

	 	(h)	 	Binding Effect of Plan.
	 	 	 	The Plan shall be binding upon and shall inure to the benefit of the Corporation,
its successors and assigns and the Corporation shall require any successor or assign
to expressly assume and agree to perform the Plan in the same manner and to the same
extent that the Corporation would be required to perform it if no such succession or
assignment had taken place. The term “the Corporation” as used herein shall include
such successors and assigns. The term “successors and assigns” as used herein shall
mean a corporation or other entity directly or indirectly acquiring all or
substantially all the assets and business of the Corporation (including the Plan)
whether by operation of law or otherwise.

	 	(i)	 	No Waiver of Breach.
	 	 	 	No waiver by either party hereto at any time of any breach by the other party hereto
of, or compliance with, any condition or provision of the Plan to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions of
conditions at the same or at any prior or subsequent time.

	 	(j)	 	Authority to Establish Grantor Trust.
	 	 	 	The Committee is authorized in its sole discretion to establish a grantor trust for
the purpose of providing security for the payment of Awards under the Plan;
provided, however, that no Director shall be considered to have a beneficial
ownership interest (or any other sort of interest) in any specific asset of the
Corporation or of its subsidiaries or affiliates as a result of the creation of such
trust or the transfer of funds or other property to such trust.

	15.	 	APPROVAL OF STOCKHOLDERS.
	 	 	Adoption of the Plan shall be subject to approval by affirmative vote of the stockholders of
the Corporation in accordance with applicable law.

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