Document:

EXHIBIT 10.1

                       OFFICER SPECIAL SEVERANCE AGREEMENT
                       -----------------------------------

     THIS  AGREEMENT,  dated as of  February  1,  2006,  by and  between  Rogers
Corporation, a Massachusetts corporation,  (herein referred to as the "Company")
and Dennis M. Loughran (the "Officer").

                                 WITNESSETH THAT
                                 ---------------

     WHEREAS, the Board of Directors of the Company (the "Board") has determined
that it is in the best  interests  of the Company and its  shareholders  for the
Company to agree to provide benefits under circumstances  described below to the
Officer as one of the elected  corporate  officers  who is  responsible  for the
policy-making  functions  of  the  Company  and  the  overall  viability  of the
Company's business; and

     WHEREAS,  the Board  recognizes that the possibility of a change in control
of the Company is unsettling to the Officer and wishes to make  arrangements  at
this time to ensure the Officer's continuing  dedication to his or her duties to
the Company and its shareholders  notwithstanding  the occurrence of any attempt
by outside parties to gain control of the Company; and

     WHEREAS,  the Board  believes  it  important,  should the  Company  receive
proposals  from such  outside  parties,  to enable the  Officer,  without  being
distracted by the  uncertainties of the Officer's own employment  situation,  in
addition to the Officer's  regular  duties,  to participate in the assessment of
such  proposals and provision of advice to the Board as to the best interests of
the  Company  and its  shareholders  and to take such other  action as the Board
determines to be appropriate; and

     WHEREAS,  the Board also  wishes to  demonstrate  to the  Officer  that the
Company is concerned for the Officer's  welfare and intends to ensure that he or
she as a loyal officer is treated fairly;

     NOW,  THEREFORE,  in consideration of the promises and the mutual covenants
contained herein, the parties hereto agree as follows:

 1.  Change in Control.  The term "Change in Control"  shall mean the occurrence
     of any one or more of the  following  prior  to the  Agreement  Termination
     Date, as defined in Paragraph 3(a):

     (a)  The Company  receives or should have received a report on Schedule 13D
          (or any  successor  form)  filed  with  the  Securities  and  Exchange

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          Commission pursuant to Section 13(d) of the Securities Exchange Act of
          1934, as amended  (hereinafter  referred to as the "Act"),  disclosing
          that any person, group, partnership, association, corporation or other
          entity is the beneficial owner, directly or indirectly, of twenty-five
          percent  (25%) or more of the  voting  power  of the then  outstanding
          voting securities of the Company;

     (b)  Any person  (as such term is  defined  in  Section  13(d) of the Act),
          group,  partnership,  association,  corporation  or other entity other
          than the  Company,  a  wholly-owned  subsidiary  of the Company or the
          trustee(s) of any qualified  retirement plan maintained by the Company
          or a  wholly-owned  subsidiary of the Company,  becomes the beneficial
          owner of  shares  pursuant  to a tender  offer  or  exchange  offer to
          acquire voting  securities of the Company (or  securities  convertible
          into same) for cash,  securities or any other consideration,  provided
          that after consummation of the offer, the person, group,  partnership,
          association, corporation or other entity in question is the beneficial
          owner  (as  defined  in  Rule  13(d)-3  under  the  Act)  directly  or
          indirectly,   of  twenty-five  percent  (25%)  or  more  of  the  then
          outstanding  voting securities of the Company  (calculated as directed
          in paragraph  (d) of Rule 13(d)-3  under the Act in the case of rights
          to acquire voting securities);

     (c)  The  members of the Board  ("Directors")  or the  shareholders  of the
          Company  approve  (i) any  consolidation  or merger of the  Company in
          which the Company would not be the continuing or surviving corporation
          and pursuant to which shares of voting securities of the Company would
          be converted  into cash,  securities  or other  property,  or (ii) any
          sale, lease, exchange or other transfer (in a single transaction or in
          a series of  related  transactions)  of all or  substantially  all the
          assets of the Company; or

     (d)  During any period of twenty-four  consecutive months,  individuals who
          at the  beginning of such period  constituted  the Board cease for any
          reason to constitute a majority thereof;  provided,  however, that any
          Director  who is not in  office  at the  beginning  of  such  24-month
          period,  but whose  election was to fill a vacancy  caused by death or
          retirement and was approved or nominated, as applicable,  by a vote of
          at least  two-thirds of the Directors  then still in office who either
          were  Directors at the  beginning of such period or whose  election or
          nomination  for election was previously so approved shall be deemed to
          have been in office at the  beginning  of such period for  purposes of
          this provision.

 2.  Position and  Responsibilities.  For such period as the Officer is employed
     during the term of this Agreement,  the Officer agrees to serve the Company
     and/or one or more subsidiaries or affiliates of the Company ("subsidiary")
     in a  management  capacity.  From and after the date on which any Change in
     Control occurs such service shall involve such duties and  responsibilities
     at least equal in importance  and scope to those of the Officer's  position
     immediately prior to the date of such Change in Control,  as the Board, the
     Chairman of the Board, or the Chief Executive Officer may from time to time
     in good faith  determine,  and the Officer  shall  perform  such duties and
     responsibilities in good faith.

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 3.  Agreement Termination Date: Term of Agreement.

     (a)  "Agreement  Termination  Date" means the third anniversary of the date
          as of which  this  Agreement  is dated;  provided,  however,  that the
          Agreement  Termination  Date shall  automatically  be extended  for an
          additional one year period on each anniversary of the date as of which
          this Agreement is dated unless either party to this Agreement notifies
          the other party in writing during the ninety (90) day period preceding
          any such anniversary that the Agreement  Termination Date shall not be
          so extended;  and provided,  further,  that the Agreement  Termination
          Date may also be  extended at any time and for any period in a written
          instrument  modifying or renewing this Agreement that is in accordance
          with  Paragraph 11. Should one or more Changes in Control occur at any
          time prior to the Agreement  Termination  Date, all provisions of this
          Agreement  shall  apply  and  continue  in full  force  and  effect in
          accordance  with their terms for a period  beginning  with the date on
          which the first Change in Control  occurs and ending  thirty-six  (36)
          months  following  the date of the last Change in Control  that occurs
          prior to the  Agreement  Termination  Date.  If no Change  in  Control
          occurs  at any time  prior to the  Agreement  Termination  Date,  this
          Agreement  shall  terminate,  except that  Paragraphs 4(g) and 9 shall
          continue to apply to the extent the Officer  disputes the  termination
          of the Agreement.

     (b)  The term of this  Agreement  shall  begin on the date as of which this
          Agreement is dated and shall continue  through (i) the day immediately
          preceding  the  Agreement  Termination  Date,  as defined in the first
          sentence of Paragraph 3(a) above, if no Change in Control occurs prior
          to the  Agreement  Termination  Date;  or (ii) if a Change in  Control
          occurs prior to the Agreement  Termination  Date,  the last day of the
          thirty-six (36) month period  following the date of the last Change in
          Control that occurs prior to the Agreement Termination Date; provided,
          that the terms of this Agreement shall remain in full force and effect
          after the date on which  the term of this  Agreement  expires,  to the
          extent the Officer is then  receiving  benefits  hereunder,  until the
          date as of which all payments and other  benefits to which the Officer
          had  become  entitled  hereunder  prior  to the  date  on  which  this
          Agreement expires have been paid or provided in full.

 4.  Severance Benefits. If within any period commencing with the day any Change
     in Control occurs and ending  thirty-six (36) months after the date of that
     Change in Control the Officer's employment is terminated by the Company and
     by all  subsidiaries,  if any, by which the Officer is employed,  including
     Constructive  Termination  (as defined in Paragraph  6(b)),  but  excluding
     termination for Cause (as defined in Paragraph  6(a)), the Officer shall be
     entitled  to the  following  benefits  in  addition  to any and  all  other
     severance  benefits to which the  Officer  may be entitled  under any other
     plan, program or policy of the Company (or subsidiary) or agreement between
     the Officer and the Company (or subsidiary:

     (a)  Salary and Bonus  Amount.  The Company will pay to the Officer  within
          fifteen (15)  business days of such  termination  of employment a lump
          sum cash amount equal to the present value of the product  obtained by
          multiplying (1) the sum of (i) salary at the annualized rate which was
          being  paid  by  the  Company  and/or   subsidiaries  to  the  Officer
          immediately  prior to the time of such termination or, if greater,  at
          the time of the Change in Control  plus (ii) the annual  target  bonus
          and/or any other cash bonus awards last determined for the Officer or,
          if greater,  most recently paid prior to the Change in Control, by (2)
          two;  for  purposes  of this  Paragraph  4,  present  value  shall  be

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          calculated  using an interest  rate equal to the rate reported for the
          auction of thirteen  week  United  States  Treasury  Bills on the date
          coincident  with  or  most  immediately  preceding  the  date  of such
          termination as reported in The Wall Street Journal;

     (b)  Pension  Plan  Amount.  The  Company  will pay to the  Officer  within
          fifteen (15)  business days of such  termination  of employment a lump
          sum cash  amount  equal to the lump sum  present  value of the accrued
          benefit  that would be payable  under the Rogers  Corporation  Pension
          Plan for Salaried  Employees  (the "Pension  Plan"),  or any successor
          plan, if the Officer remained in full-time, active salaried employment
          with the Company for a period of twenty-four (24)  consecutive  months
          following the month in which such  termination  of  employment  occurs
          minus the lump sum present value of the accrued benefit of the Officer
          under said plan as of the date of such termination of employment;

     (c)  Other Company  Benefits.  For a period of twenty-four (24) consecutive
          months  following  the month in which such  termination  of employment
          occurs,  the Officer shall be entitled,  at no greater monthly cost to
          the Officer than the Officer's  monthly cost immediately prior to such
          termination of the Officer's employment,  to continue participation in
          those benefit  programs of the Company (or a subsidiary)  available to
          the  Officers  of the  Company  (or  subsidiary)  in which the Officer
          participated   immediately   prior  to  the  time  of  the   Officer's
          termination of employment,  excluding vacation accrual, paid holidays,
          salary  continuation  for short term  disability,  holiday gifts,  and
          qualified  retirement  plans but including such benefits as group term
          medical insurance,  dental insurance,  life insurance,  dependent life
          insurance,   personal  and  family  accident   insurance,   long  term
          disability  insurance,  annual  physical  examination,  vision/hearing
          program,  prescription drug card program, stock purchase program, U.S.
          savings bond program,  tax planning and compliance service and tuition
          refund program; provided that: (1) provision of other Company benefits
          pursuant to this Paragraph 4(c) shall not result in any duplication of
          benefits  provided by the Company (or  subsidiary);  (2) to the extent
          the  Officer  is not  eligible  under the terms of one or more of such
          plans or programs  that are  insured  plans or  programs,  the Company
          shall  (unless  the Officer is then  uninsurable)  provide the Officer
          with  substantially  similar insurance  coverage at no greater monthly
          cost to the Officer than if the Officer had  continued to  participate
          in the Company's plan or program' and (3) such benefits shall cease if
          and to the extent that any subsequent employer of the Officer provides
          substantially  equivalent  benefits to the Officer at no substantially
          greater  monthly cost to the Officer than the  Officer's  monthly cost
          for such benefits  immediately  prior to the Officer's  termination of
          employment;

     (d)  Company Car Amount.  If the Officer,  as of the date of termination of
          employment,  either was  receiving  a monthly car  allowance  or had a
          company-leased  car, any such car allowance will be discontinued as of
          the date of termination of employment and any such  company-leased car
          must be returned to the Company within thirty (30) days after the date
          of termination of employment.  Upon such discontinuance or return, the
          Officer  will  receive a single  lump sum  payment  of  $5,000  within
          fifteen (15) business days  following the date of such  discontinuance
          or return;  provided,  that if the  Officer is  entitled  to receive a

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          payment for the same reason and upon the  occurrence of  substantially
          the same  event as  described  in this  Paragraph  4(d),  the  payment
          pursuant to this Paragraph 4(d) shall be reduced (but not below $0) by
          the amount of such other payment;

     (e)  Nonqualified  Plans. If the Officer  participated in any  nonqualified
          retirement  and/or  deferred   compensation  plan(s)  of  the  Company
          immediately prior to the time of such  termination,  the Company shall
          not cause or allow the termination of, reduction of benefits under, or
          termination  or impairment of any  arrangement  established  to secure
          payment of benefits under,  any such plan with respect to the Officer.
          Further,  the Company or  subsidiaries  will  provide the Officer with
          service  credit for  benefits  under any  nonqualified  retirement  or
          deferred   compensation   plan(s)  of  the  Company,  if  the  Officer
          participated  in such  plan(s)  immediately  prior to the time of such
          termination, equal to two additional years' service accruals upon such
          termination of the Officer's employment; and

     (f)  Outplacement  Services. In the event of such termination of employment
          of  employment,  the Company  shall  provide to the Officer  executive
          outplacement  services  provided  on a  one-to-one  basis  by a senior
          counselor of a firm nationally  recognized as a reputable  provider of
          such services for a minimum sixty (60) hours, plus evaluation testing,
          at a location  not more than two hundred  (200) miles from the primary
          personal residence of the Officer; and

     (g)  Reimbursement of Certain Expenses. The Company will promptly reimburse
          the Officer  for any and all legal and  accounting  fees and  expenses
          (including  without  limitation any travel and lodging expenses of the
          Officer that would be reimbursable in accordance with the then current
          Company travel expense  reimbursement  policy) incurred by the Officer
          as a result of such  termination of employment in connection  with the
          interpretation, implementation or enforcement of any of the provisions
          of this Agreement (regardless of which party ultimately prevails); and

     (h)  Limitation on Amounts. Notwithstanding any provision of this Agreement
          to the contrary,  the aggregate  amount that shall be paid pursuant to
          this  Agreement  shall  be  the  maximum  amount  payable  under  this
          Paragraph 4 that will not (when  aggregated with any other payments by
          the Company or any subsidiary) result in the imposition of a tax under
          Section  4999 of the Internal  Revenue  Code of 1986,  as amended (the
          "Code"), or any successor provision; provided, that if all or any part
          of the value of  benefits  under  more than one  subparagraph  of this
          Paragraph 4 is treated as a "parachute  payment" within the meaning of
          Code 280G for purposes of determining whether payments would result in
          the  imposition  of  said  tax,  then  the  Officer  shall  have  sole
          discretion to determine  which  benefit(s) to forego in order to avoid
          the imposition of said tax.

 5.  Other Severance  Payments.  If the Officer immediately prior to the date of
     any Change in Control would be entitled to receive cash severance  payments
     by reason of termination of employment (if termination then occurred) under
     any other plan,  program or policy of the Company  (or  subsidiary)  or any
     agreement between the Officer and the Company (or subsidiary) (collectively
     "policy"),  and if  there  is a  reduction  in or  termination  of any such
     amounts payable on or after such Change in Control but before the Officer's

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     employment is terminated, then if the Officer becomes entitled to severance
     benefits  pursuant to Paragraph 4 above the Officer  shall also be entitled
     to receive a cash payment that,  when  aggregated  with any amount actually
     paid  pursuant  to any such  policy,  equals the  amount of cash  severance
     payments that would have been payable  pursuant to such policy  immediately
     prior  to the date of such  Change  in  Control.  Further,  if the  Officer
     becomes  entitled to receive cash severance  payments under any such policy
     by reason of termination of employment  within any period  commencing  with
     the day any Change in Control  occurs and  ending  thirty-six  (36)  months
     after the date of that Change in Control,  then to the extent such payments
     would be paid  later  than the date on which  payments  must be made  under
     Paragraph 4(a) above the present value (determined as provided in Paragraph
     4(a))  of such  payments  shall  be paid no  later  than  the date on which
     payments must be made under Paragraph 4(a). In addition,  if on the date of
     any Change in Control,  the Officer is  receiving  any such  payments,  the
     present value  (determined as provided in Paragraph  4(a)) of the remainder
     of such  payments  shall be paid no later  than the date on which  payments
     must be made under Paragraph 4(a).

 6.  (a)  Termination  for Cause.  "Cause" means only the willful  commission by
          the Officer of material  theft or  embezzlement  or other  serious and
          substantial  crimes against the Company or subsidiaries.  For purposes
          of this  definition,  no act or omission  shall be  considered to have
          been  "willful"  unless it was not in good faith and the  Officer  had
          knowledge  at the time  that the act or  omission  was not in the best
          interests  of the  Company or  subsidiaries.  Further,  the  Officer's
          attempt  to  secure   employment  with  another   employer  shall  not
          constitute  an event  of  "cause".  Finally,  any  termination  of the
          Officer's  employment by the Company or any  subsidiary at a time when
          the Officer is unable to perform  all or any portion of the  Officer's
          regular  services by reason of any physical or mental  impairment  not
          expected to continue for a period  exceeding  twelve (12)  consecutive
          months shall not  constitute  termination by the Company or subsidiary
          for "cause".

     (b)  Constructive  Termination.  If the  Officer  leaves  the employ of the
          Company or any subsidiary for any reason:

          (i)  following a reduction in the  Officer's  position,  compensation,
               bonus formula,  responsibilities,  authority, reputation, pension
               arrangements,   stock  option  or  other  incentive  compensation
               arrangements, or other Company benefits that the Officer would be
               entitled to pursuant to Paragraph  4(c) or 4(e) if the  Officer's
               employment  then  terminated,  or a  material  reduction  in  the
               Officer's prestige, enjoyed by the Officer prior to the Change in
               Control,  as determined  in good faith by the Officer;  provided,
               that  the  Officer's  failure  immediately   following  any  such
               reduction to terminate employment or otherwise to exercise his or
               her  rights  hereunder  arising  from  such  reduction  shall not
               constitute a waiver of the  Officer's  rights  hereunder  arising
               from such reduction or otherwise impair the Officer's  ability to
               exercise  such  rights   within  one  year   following  any  such
               reduction;

          (ii) following an attempt by the Company or any subsidiary to relocate
               the  Officer  to, or to require  the  Officer to perform  regular
               services at, any location that is outside the continental  United
               States  of  America;   provided,   that  the  Officer's   failure

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               immediately following any such attempt to terminate employment or
               otherwise  to exercise his or her rights  hereunder  arising from
               such  attempt  shall not  constitute  a waiver  of the  Officer's
               rights  hereunder  arising from such attempt or otherwise  impair
               the  Officer's  ability to exercise  such rights  within one year
               following any such attempt;

          (iii) within ninety (90) days of the Officer's  receipt of notice from
               the Company that the Company's ratio of current assets to current
               liabilities  as reflected on any  quarterly or annual  statements
               filed by the Company with the Securities and Exchange  Commission
               falls below one and one-quarter (1 1/4) to one (1) or any date on
               which the total of -- the Company's long-term debt (including the
               current  portion  due  within one year) and its  short-term  debt
               incurred for money borrowed exceeds seventy-five percent (75%) of
               the  Company's  net worth as reflected in such  statements  filed
               with the Securities and Exchange  Commission  (each, a "Financial
               Termination Event"); provided, that if at any time the Company is
               no longer  required to file such statements or fails to file such
               statements,  the Company shall cause to be prepared in accordance
               with  generally  accepted  accounting   principles   consistently
               applied quarterly  financial  statements  (within forty-five (45)
               days of the  end of the  Company's  fiscal  quarter)  and  annual
               financial  statements  (within  sixty (60) days of the end of the
               Company's fiscal year) of the Company  indicating the information
               required to determine whether either Financial  Termination Event
               has  occurred;  and  provided,  further,  that the Company  shall
               provide  written  notice to the Officer  within five (5) business
               days  after  the date any such  statement  is filed  (or has been
               completed,  if not filed) if either Financial  Termination  Event
               has  occurred;   and  provided,   further,   that  the  Financial
               Termination   Event  shall  not  have   resulted   from  economic
               conditions  generally  adverse to the  Company or its markets but
               rather shall have resulted from deliberate  mismanagement  of the
               Company's  affairs by, or a diminution of the Company's assets on
               the part of, the person(s)  controlling the Company subsequent to
               the Change of Control;

          (iv) at any time within twelve (12) months after the Company  notifies
               the Officer in writing that the Agreement  Termination Date shall
               not be extended, as provided in Paragraph 3(a); or

          (v)  at any time  within  twelve (12)  months  following  the date the
               Officer  knows that the Company has  breached any of the terms of
               this Agreement;

          in each of the  foregoing  cases  regardless of whether the Officer is
          entitled to elect,  or elects,  retirement  upon leaving the employ of
          the Company or any subsidiary,  such  termination of employment  shall
          constitute  termination by the Company or subsidiary for reasons other
          than Cause.

          Finally,  if the Officer is employed by the Company and also by one or
          more subsidiaries and if the Officer's employment is terminated by one
          or more but not by all of such employing entities, such termination of
          the Officer's  employment  shall  constitute  termination  by all such
          employing  entities  if  termination  by less than all such  employing

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          entities results in any reduction described in Paragraph 6(b)(i) above
          and if the  Officer  leaves  the  employ of the one or more  employing
          entities by which the Officer's employment was not terminated.

          Any such termination shall constitute "Constructive Termination".

 7.  Consolidation  or Merger.  If the  Company is at any time before or after a
     Change  in  Control  merged  or   consolidated   into  or  with  any  other
     corporation,  association,  partnership or other entity (whether or not the
     Company is the surviving  entity),  or if  substantially  all of the assets
     thereof are transferred to another corporation, association, partnership or
     other entity,  the  provisions of this  Agreement  will be binding upon and
     inure to the benefit of the corporation,  association, partnership or other
     entity  resulting from such merger or consolidation or the acquirer of such
     assets  (collectively,  "acquiring  entity") unless the Officer voluntarily
     elects not to become an employee of the  acquiring  entity as determined in
     good  faith  by  the  Officer.  Furthermore,  in  the  event  of  any  such
     consolidation  or  transfer  of  substantially  all  of the  assets  of the
     Company,  the Company  shall  enter into an  agreement  with the  acquiring
     entity that shall  provide  that such  acquiring  entity  shall assume this
     Agreement  and  all  obligations  and  liabilities  under  this  Agreement;
     provided,  that the Company's  failure to comply with this provision  shall
     not adversely affect any right of the Officer  hereunder.  This Paragraph 7
     will  apply in the  event of any  subsequent  merger  or  consolidation  or
     transfer of assets.

     In the  event of any  merger,  consolidation  or sale of  assets  described
     above,  nothing  contained in this Agreement will detract from or otherwise
     limit  the  Officer's  right  to  or  privilege  of  participation  in  any
     restricted  stock plan,  bonus or incentive plan,  stock option or purchase
     plan, profit sharing,  pension,  group insurance,  hospitalization or other
     compensation  or  benefit  plan  or  arrangement  which  may  be or  become
     applicable  to officers of the  corporation  resulting  from such merger or
     consolidation or the corporation acquiring such assets of the Company.

     In the  event of any  merger,  consolidation  or sale of  assets  described
     above,  references  to the  Company  in this  Agreement  shall,  unless the
     context suggests otherwise,  be deemed to include the entity resulting from
     such merger or consolidation or the acquirer of such assets of the Company.

 8.  Payments. All payments provided for in this Agreement shall be paid in cash
     in United  States  funds  from the  general  funds of the  Company  and its
     subsidiaries drawn on the United States location of a bank and paid in bank
     or  cashier's  check.  The Company  shall not be  required  to  establish a
     special or  separate  fund or other  segregation  of assets to ensure  such
     payments.

     All  payments  made  by  the  Company  to  the  Officer  or  the  Officer's
     dependents,  beneficiaries  or estate will be subject to the withholding of
     such amounts  relating to tax and/or  other  payroll  deductions  as may be
     required by law.

 9.  Arbitration.  In the  event of a  dispute  between  the  parties  as to the
     interpretation  or  application  of this  Agreement,  such  dispute  may be
     submitted by the Officer or by the Company to binding arbitration before an
     impartial arbitrator pursuant to the Rules of Commercial Arbitration of the

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     American Arbitration Association.  The Officer shall be reimbursed promptly
     by the  Company  for  all  travel  and  lodging  expenses  (that  would  be
     reimbursable  in accordance  with the then current  Company  travel expense
     reimbursement policy) incurred in connection with any such arbitration.  In
     addition, if the Officer prevails in any such arbitration  proceeding,  the
     Company  shall  reimburse  the  Officer  promptly  for 100% of the fees and
     expenses  the  Officer  incurs  in  connection  with any such  arbitration,
     including  legal fees and  filing and  arbitrator's  fees;  if the  Company
     prevails in any such  arbitration  proceeding,  the Company shall reimburse
     the Officer promptly for 80% of the fees and expenses the Officer incurs in
     connection with any such  arbitration,  including legal fees and filing and
     arbitrator's  fees;  and if each party  prevails in part, the Company shall
     reimburse the Officer promptly for such  percentage,  not less than 80% and
     not more  than  100%,  of the fees  and  expenses  the  Officer  incurs  in
     connection  with such  arbitration,  including  legal  fees and  filing and
     arbitrator's fees, as the arbitrator shall determine.

 10. Assignment;  Payment on Death.  The provisions of this  Agreement  shall be
     binding upon and shall inure to the benefit of the Officer,  the  Officer's
     executors,  administrators,  legal  representatives  and  assigns  and  the
     Company and its successors.

     There  shall be no right of  set-off  or  counterclaim,  in  respect of any
     claim,  debt or  obligation,  against  any  payments  to the  Officer,  the
     Officer's  dependents,   beneficiaries  or  estate  provided  for  in  this
     Agreement.

     In the event that the  Officer  becomes  entitled  to  payments  under this
     Agreement  and  subsequently  dies,  all  amounts  payable  to the  Officer
     hereunder  and not yet paid to the  Officer  at the  time of the  Officer's
     death shall be paid to the Officer's  beneficiary.  No right or interest to
     or in any payments shall be assignable by the Officer;  provided,  however,
     that this provision shall not preclude the Officer from  designating one or
     more  beneficiaries  to receive  any amount  that may be payable  after the
     Officer's  death and shall not  preclude the legal  representatives  of the
     Officer's  estate  from  assigning  any right  hereunder  to the  person or
     persons  entitled  thereto  under  the  Officer's  will or,  in the case of
     intestacy,  to the person or  persons  entitled  thereto  under the laws of
     intestacy  applicable to the Officer's  estate.  The term  "beneficiary" as
     used in this  Agreement  shall mean the  beneficiary  or  beneficiaries  so
     designated by the Officer to receive such amount or, if no such beneficiary
     is  in  existence  at  the  time  of  the   Officer's   death,   the  legal
     representative of the Officer's estate.

     No right,  benefit or interest  hereunder shall be subject to anticipation,
     alienation, sale, assignment,  encumbrance,  charge, pledge, hypothecation,
     or set-off in respect of any claim,  debt or  obligation,  or to execution,
     attachment, levy or similar process, or assignment by operation of law. Any
     attempt,  voluntary or involuntary,  to effect any action  specified in the
     immediately  preceding sentence shall, to the full extent permitted by law,
     be null, void and of no effect.

 11. Modification.  This Agreement may be modified only in a written  instrument
     agreed to and executed by the Company and the Officer.

 12. Severability.  If any provision of this Agreement shall, for any reason, be
     held  to be  invalid,  illegal,  or  unenforceable  in  any  respect,  such
     invalidity,  illegality  or  unenforceability  shall not  affect  any other

                                  Page 9 of 10

<PAGE>

     provision of this  Agreement,  and this Agreement  shall be construed as if
     such invalid,  illegal or unenforceable  provision had never been contained
     herein.

 13. Headings of No Effect.  The paragraph  headings contained in this Agreement
     are included  solely for  convenience or reference and shall not in any way
     affect  the  meaning or  interpretation  of any of the  provisions  of this
     Agreement.

 14. Governing Law. This Agreement and its validity, interpretation, performance
     and  enforcement  shall  be  governed  by the laws of the  Commonwealth  of
     Massachusetts.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by
its officers thereto duly authorized, and the Officer has signed this Agreement,
all as of the date first above written.

                                  ROGERS CORPORATION

                                  By:  /s/  Robert D. Wachob
                                       -----------------------------------------
                                       Robert D. Wachob, President and CEO

                                  Page 10 of 10Exhibit 4.1

BP CAPITAL ACCUMULATION PLAN

(formerly Atlantic Richfield Company Capital Accumulation Plan)

___________________________________________

 

BP CAPITAL ACCUMULATION PLAN

 

Effective April 18, 2000

 

As Amended Through

Amendment No. 4 

 

TABLE OF CONTENTS

	
             
 	
            Page No.
 	
             

	
            INTRODUCTION
 	
            1
 
				

 

Section 1 - DEFINITION

	
             
 	
            1.1
 	
            Acquisition Loan
 	
            2
 
	
             
 	
            1.2
 	
            Administrator
 	
            2
 
	
             
 	
            1.3
 	
            Annual Earnings or Earnings
 	
            2
 
	
             
 	
            1.4
 	
            Benefits Committee
 	
            2
 
	
             
 	
            1.5
 	
            Capital Accumulation Plan Administrative Committee
 	
            2
 
	
             
 	
            1.6
 	
            Code
 	
            2
 
	
             
 	
            1.7
 	
            Company
 	
            2
 
	
             
 	
            1.8
 	
            Credited Company Service
 	
            2
 
	
             
 	
            1.9
 	
            Effective Date
 	
            3
 
	
             
 	
            1.10
 	
            Elective Deferrals or Deferrals
 	
            3
 
	
             
 	
            1.11
 	
            Employee
 	
            3
 
	
             
 	
            1.12
 	
            Employee Contribution Agreement
 	
            3
 
	
             
 	
            1.13
 	
            ERISA
 	
            3
 
	
             
 	
            1.14
 	
            Financed Shares
 	
            3
 
	
             
 	
            1.15
 	
            Former Member
 	
            3
 
	
             
 	
            1.16
 	
            Highly Compensated Employee
 	
            3
 
	
             
 	
            1.17
 	
            Hour of Service
 	
            4
 
	
             
 	
            1.18
 	
            Matching Contributions
 	
            6
 
	
             
 	
            1.19
 	
            Member
 	
            6
 
	
             
 	
            1.20
 	
            Member’s Account or Account
 	
            6
 
	
             
 	
            1.21
 	
            Member Contributions
 	
            6
 
	
             
 	
            1.22
 	
            Plan or Plans
 	
            6
 
	
             
 	
            1.23
 	
            Plan Year
 	
            6
 
	
             
 	
            1.24
 	
            Subsidiary or Affiliate
 	
            6
 
	
             
 	
            1.25
 	
            Trust Agreement
 	
            6
 
	
             
 	
            1.26
 	
            Trustee
 	
            7
 
	
             
 	
            1.27
 	
            Valuation Date
 	
            7
 

 

Section 2 - MEMBERSHIP - ELIGIBILITY

	
             
 	
            2.1
 	
            Membership
 	
            8
 
	
             
 	
            2.2
 	
            Notice to Administrator
 	
            8
 
	
             
 	
            2.3
 	
            Membership Termination
 	
            8
 

 

 

 

 

	
             
 	
            2.4
 	
            Member Suspension
 	
            9
 
	
             
 	
            2.5
 	
            Member Transfers
 	
            9
 
	
             
 	
            2.6
 	
            Capital Accumulation Plan Assets
 	
            9
 

 

Section 3 - MEMBERS’ ELECTIVE DEFERRALS

	
             
 	
            3.1
 	
            Members’ Elections
 	
            11
 
	
             
 	
            3.2
 	
            Contribution of Elective Deferrals and Member Contributions
 	
            12
 
	
             
 	
            3.3
 	
            Annual Dollar Limitation
 	
            12
 
	
             
 	
            3.4
 	
            Actual Deferral Percentage Tests
 	
            13
 
	
             
 	
            3.5
 	
            Distribution of Excess Contributions
 	
            13
 
	
             
 	
            3.6
 	
            Make-Up Elective Deferrals and Member Contributions
 	
            14
 

 

Section 4 -  COMPANY CONTRIBUTION

	
             
 	
            4.1
 	
            Matching Contribution
 	
            15
 
	
             
 	
            4.2
 	
            Form of Contribution
 	
            15
 
	
             
 	
            4.3
 	
            Members Excluded From Contribution
 	
            15
 
	
             
 	
            4.4
 	
            Actual Contribution Percentage Test
 	
            15
 
	
             
 	
            4.5
 	
            Distribution of Excess Aggregate Contributions
 	
            15
 
	
             
 	
            4.6
 	
            Limitation on the Multiple Use Alternative
 	
            17
 
	
             
 	
            4.7
 	
            Section 415 Limitations
 	
            17
 
	
             
 	
            4.8
 	
            Nonelective Contributions
 	
            18
 
	
             
 	
            4.9
 	
            Exclusive Benefit
 	
            18
 

 

Section 5 - FINANCED SHARES

	
             
 	
            5.1
 	
            Acquisition Loans
 	
            20
 
	
             
 	
            5.2
 	
            Payments on Acquisition Loan
 	
            21
 

 

Section 6 - INVESTMENT OF MEMBERS’ AND FORMER MEMBERS’ ACCOUNTS

	
             
 	
            6.1
 	
            Members’ and Former Members’ Accounts
 	
            23
 
	
             
 	
            6.2
 	
            Investment of the Member’s Account
 	
            23
 
	
             
 	
            6.3
 	
            Investment of Company Contributions
 	
            23
 
	
             
 	
            6.4
 	
            Member of Former Member Direction of Investments
 	
            24
 
	
             
 	
            6.5
 	
            Allocation of Investment Experience
 	
            24
 
	
             
 	
            6.6
 	
            Manner and Time of Debiting Distributions
 	
            24
 
	
             
 	
            6.7
 	
            Title of Investments
 	
            24
 
	
             
 	
            6.8
 	
            Voting of Investments
 	
            24
 
	
             
 	
            6.9
 	
            Voting of BPA ADRs
 	
            24
 
	
             
 	
            6.10
 	
            Investment Advisory Fees
 	
            25
 
	
             
 	
            6.11
 	
            Member or Former Member Protection
 	
            25
 
	
             
 	
            6.12
 	
            Confidentiality
 	
            25
 
	
             
 	
            6.13
 	
            Conversion of Atlantic Richfield Company Common Stock
 	
            25
 

 

Section 7 - WITHDRAWALS DURING EMPLOYMENT

	
             
 	
            7.1
 	
            Age 591⁄2 Withdrawal
 	
            26
 
	
             
 	
            7.2
 	
            Application and Basis for Hardship Withdrawal
 	
            26
 
	
             
 	
            7.3
 	
            Partial Withdrawals of Member Contributions
 	
            27
 

 

Section 8 - PAYMENTS ON TERMINATION OF MEMBERSHIP OR OTHER REASONS

	
             
 	
            8.1
 	
            Termination of Employment
 	
            29
 

 

 

 

 

	
             
 	
            8.2
 	
            Death
 	
            30
 
	
             
 	
            8.3
 	
            Disability
 	
            31
 
	
             
 	
            8.4
 	
            Divorce
 	
            31
 
	
             
 	
            8.5
 	
            Rollover
 	
            31
 
	
             
 	
            8.6
 	
            Notice
 	
            32
 
	
             
 	
            8.7
 	
            Distributions
 	
            32
 
	
             
 	
            8.8
 	
            Distribution of Benefits
 	
            34
 

 

Section 9 - LOANS TO MEMBERS

	
             
 	
            9.1
 	
            General
 	
            35
 
	
             
 	
            9.2
 	
            Eligibility
 	
            35
 
	
             
 	
            9.3
 	
            Loan Amount
 	
            35
 
	
             
 	
            9.4
 	
            Number of Loans
 	
            36
 
	
             
 	
            9.5
 	
            Interest Rate
 	
            36
 
	
             
 	
            9.6
 	
            Security
 	
            36
 
	
             
 	
            9.7
 	
            Funding of the Loan
 	
            36
 
	
             
 	
            9.8
 	
            Repayment of the Loan
 	
            36
 
	
             
 	
            9.9
 	
            Deemed Distribution
 	
            37
 
	
             
 	
            9.10
 	
            Default
 	
            37
 

 

Section 10 - CAPITAL ACCUMULATION ADMINISTRATIVE COMMITTEE

	
             
 	
            10.1
 	
            Capital Accumulation Plan Administrative Committee
 	
            38
 
	
             
 	
            10.2
 	
            Rules of Conduct
 	
            38
 
	
             
 	
            10.3
 	
            Legal, Accounting, Clerical
 	
            38
 
	
             
 	
            10.4
 	
            Interpretation of Provisions
 	
            38
 
	
             
 	
            10.5
 	
            Records of Administration
 	
            38
 
	
             
 	
            10.6
 	
            Claims for Benefits
 	
            39
 
	
             
 	
            10.7
 	
            Liability of Committee
 	
            40
 
	
             
 	
            10.8
 	
            Unlocated Member
 	
            40
 
	
             
 	
            10.9
 	
            Legal Representative
 	
            40
 

 

Section  11 - AMENDMENTS, DISCONTINUANCE, LIABILITIES

	
             
 	
            11.1
 	
            Amendment
 	
            42
 
	
             
 	
            11.2
 	
            Termination
 	
            43
 
	
             
 	
            11.3
 	
            Liability of Company
 	
            43
 

 

Section 12 - MISCELLANEOUS

	
             
 	
            12.1
 	
            Employment
 	
            44
 
	
             
 	
            12.2
 	
            Benefits Not Assignable
 	
            44
 
	
             
 	
            12.3
 	
            Discharge of Liability
 	
            44
 
	
             
 	
            12.4
 	
            Governing Laws
 	
            44
 
	
             
 	
            12.5
 	
            Limitation on Mergers
 	
            44
 
	
             
 	
            12.6
 	
            Delegation of Fiduciary or Administrative Responsibilities
 	
            44
 
	
             
 	
            12.7
 	
            Named Fiduciary
 	
            45
 

 

Section 13 - ROLLOVERS

	
             
 	
            13.1
 	
            Rollovers from Other Qualified Plans
 	
            46
 
	
             
 	
            13.2
 	
            Transfers from Individual Retirement Accounts
 	
            46
 

 

 

 

 

	
             
 	
            13.3
 	
            Membership
 	
            46
 
	
             
 	
            13.4
 	
            Administration
 	
            46
 

 

Section 14 - TOP HEAVY PROVISIONS

	
             
 	
            14.1
 	
            Definitions
 	
            48
 
	
             
 	
            14.2
 	
            Minimum Allocation
 	
            51
 
	
             
 	
            14.3
 	
            52
 
	
             
 	
            14.4
 	
            52
 
	
             
 	
            14.5
 	
            52
 
	
             
 	
            14.6
 	
            52
 

 

Section 15 – SPECIAL PROVISION APPLICABLE TO MEMBERS TRANSFERRING

	
             
 	
            TO PHILLIPS PETROLEUM COMPANY
 	
            53
 

 

 

 

 

ATLANTIC RICHFIELD

CAPITAL ACCUMULATION PLAN

 

 

To record the adoption of the amended and restated Atlantic Richfield Capital Accumulation Plan, effective March 15, 1999, the undersigned, being duly authorized to act on behalf of Atlantic Richfield Company has executed this plan document at Los Angeles, California on the 23 day of March, 1999.

 

 

 

	
            ATTEST:
 	
            ATLANTIC RICHFIELD COMPANY
 

 

 

 

	 BY:
        __________________________
	 BY:
        ___________________________
	  

	  
	 John
        H. Kelly
	  

	  
	 Senior
        Vice President

	  
	 Human
        Resources
	  

						

 

 

 

 

ATLANTIC RICHFIELD

CAPITAL ACCUMULATION PLAN

 

INTRODUCTION

 

This Plan is intended to qualify as a Stock Bonus Plan under §401(a) of the Internal Revenue Code of 1986, as amended, and as a Qualified Cash or Deferred Arrangement under §401(k) of the Code. Formerly, part of the Plan (the “ESOP Part”) was intended to qualify as an Employee Stock Ownership Plan under §4975(e)(7) of the Code and such part was designed to invest primarily in Atlantic Richfield Company Common Stock. Effective as of the date of the merger of a subsidiary of BPA with and into Atlantic Richfield Company, the former ESOP Part of the Plan is no longer intended to qualify as an Employee Stock Ownership Plan under §4975(e)(7) of the Code.

 

Effective March 14, 1999, the Atlantic Richfield Company Capital Accumulation Plan III, the Atlantic Richfield Savings Plan II, the Atlantic Richfield Savings Plan III and the Union Texas Petroleum Savings Plan for Salaried Employees (the “Predecessor Plans”) are merged into the Atlantic Richfield Capital Accumulation Plan II and the name of the plan is changed to the Atlantic Richfield Capital Accumulation Plan.

 

This amendment and restatement of the Plan is effective March 15, 1999, except as otherwise indicated, and is intended to bring the Plan into compliance with the Uniformed Services Employment and Re-employment Act of 1994, Small Business Protection Act of 1996, subsequent legislation, and relevant regulations and rulings. The provisions of this amended and restated plan apply to persons who are employed on or after March 15, 1999, unless otherwise indicated.

 

 

	
             
 	
            - 1 -
 

 

 

 

SECTION 1

DEFINITIONS

 

	
            1.1
 	
            “Acquisition Loan”  means a loan or other extension of credit used by the Trustee to finance the acquisition of Atlantic Richfield Company Common Stock. Effective as of the date of the merger of a subsidiary of BPA with and into Atlantic Richfield Company, Acquisition Loans are no longer permitted by the Plan.
 

 

	
            1.2
 	
            “Administrator”  means the Capital Accumulation Plan Administrative Committee.
 

 

	
            1.3
 	
            
“Annual Earnings” or
“Earnings” means the annual, actual wages or
salary paid to a Member for the Member’s personal service, including the
amount of any Employee contribution pursuant to §125 and §401(k) of
the Code, as amended, but excluding the Alaska benefit base enhancement and
foreign service premiums1,
and extra pay such as overtime, premiums, bonuses, living or other allowances.
Annual Earnings shall not exceed a Member’s regular wages or salary as
determined by the Company. Annual Earnings or Earnings shall not exceed
$160,000, as adjusted each Plan Year pursuant to §401(a)(17)(B) of the
Code.
 

 

	
            1.4
 	
            “Benefits Committee”  means a committee comprised of the Senior Vice President, Human Resources, the Senior Vice President and Treasurer, and the Senior Vice President and General Counsel, which Committee shall have responsibilities for amendments to the Plan as prescribed in Subparagraph 11.1(b) of the Plan.
 

 

	
            1.5
 	
            “Capital Accumulation Plan Administrative Committee” means the committee provided for in Section 10 of this Plan.
 

 

	
            1.6
 	
            “Code”  means the Internal Revenue Code of 1986, as amended.
 

 

	
            1.7
 	
            “Company” means Atlantic Richfield Company and such of its Subsidiaries or Affiliates whose Employees are included in this Plan upon authorization of Atlantic Richfield Company and adoption of this Plan by such authorized Subsidiary or Affiliate.
 

 

	
            1.8
 	
            “Credited Company Service” means service with the Company, a predecessor company, and/or a Subsidiary or Affiliate which service the Company recognizes, on a basis uniformly applicable to all persons similarly situated, for purposes of this Plan.
 

 

	
            1.9
 	
            “Effective Date” means the effective date of this amended and restated Plan which is March 15, 1999, unless otherwise indicated.
 

 

	
            1.10
 	
            “Elective Deferrals” or “Deferrals”  means reductions pursuant to an Employee Contribution Agreement of a Member’s Annual Earnings, which amounts are transferred by
 

_________________________

1      The exclusion of foreign service premiums shall not apply to a Member who on September 1, 1994 is in a foreign assignment until such time as the Member leaves the country in which the Member is employed on September 1, 1994 or, if later, completes the assignment in which the Member was engaged on September 1, 1994.

 

 

	
             
 	
            - 2 -
 

 

 

the Company to the Trustee of the Plan.

 

	
            1.11
 	
            “Employee”  means any person who is employed by the Company, excluding:
 

 

(a)    Casual Employees, Project Employees and Leased Employees, as defined under the Atlantic Richfield Employment Status Classification Policy;

 

(b)   Employees represented by any collective bargaining agent which has not negotiated the benefits of this Plan; and

 

(c)    Any division or group of employees which is expressly excluded from eligibility for the Plan by action of Atlantic Richfield Company or, in the case of a Subsidiary or Affiliate, action by the Subsidiary or Affiliate by which such employees are paid.

 

	
            1.12
 	
            “Employee Contribution Agreement”  means an agreement entered into between the Member and the Company, and by which the Member agrees to accept a reduction in Earnings from the Company equal to any whole (or fractions, as required by adjustments under Paragraph 3.3, 3.4 or 4.4) percentage, per payroll period. This reduction may be on a pre-tax or after-tax basis, as elected by the Member. This agreement shall apply to each payroll period during the period it is in effect in which the Member receives Earnings. In consideration of such agreement, the Company will transfer to the Member’s pre-tax Elective Deferral subaccount or to the Member’s after-tax Member Contribution subaccount, as applicable, the amount of the Elective Deferrals or Member Contributions at the time
that regular salary payments are made to its Employees.
 

 

	
            1.13
 	
            “ERISA”  means the Employee Retirement Income Security Act of 1974.
 

 

	
            1.14
 	
            “Financed Shares”  means shares of Atlantic Richfield Company Common Stock acquired by the Trustee with the proceeds of an Acquisition Loan.
 

 

	
            1.15
 	
            “Former Member” means a Member whose membership has terminated pursuant to Paragraph 2.3 and whose account has not been fully distributed.
 

 

	
            1.16
 	
            “Highly Compensated Employee”, effective July 1, 1997, means:
 

 

	
             
 	
            (a)
 	
            Any employee who performs service during the determination year and is described in one or more of the following groups:
 

 

(i)     An employee who is a five percent owner, as defined in §416(i)(1) of the Code, at any time during the determination year or the look-back year, as defined below; or

 

(ii)    An employee who receives compensation in excess of $80,000, as adjusted pursuant to §415(d) of the Code during the look-back 

 

 

	
             
 	
            - 3 -
 

 

 

year.

 

	
             
 	
            (b)
 	
            For purposes of the definition of Highly Compensated Employee the following will apply:
 

 

(i)     The determination year is the Plan Year for which the determination of who is highly compensated is being made.

 

(ii)    The look-back year is the 12-month period immediately preceding the determination year; provided, however, that for the Plan Year beginning March 15, 1999, the look-back year shall be the calendar beginning January 1, 1999.

 

(iii)   Employers aggregated under §414(b), (c), (m), or (o) of the Code are treated as a single employer.

 

(iv)   Compensation, for purposes of this Paragraph 1.16 means compensation within the meaning of §415(c)(3) of the Code without regard to §125, §402(e)(3) and §402(h)(1)(B) of the Code.

 

(c)    A former Employee who has a separation year prior to the determination year and who was a highly compensated active employee for either (i) such employee’s separation year, or (ii) any determination year ending on or after the employee’s 55th birthday will be a Highly Compensated Employee. Generally, a separation year is the determination year the employee separates from service. An employee who separated from service before January 1, 1987, will be included as a Highly Compensated Employee only if the Employee was a five percent owner or received compensation in excess of $50,000 during the year.

 

	
            1.17
 	
            “Hour of Service”  means:
 

 

(a)    Each hour for which an Employee is paid, or entitled to payment, for the performance of duties for the Company or any Subsidiary or Affiliate during the computation period in which the duties are performed.

 

(b)   Each hour for which an Employee is paid, or entitled to payment, by the Company or any Subsidiary or Affiliate on account of a period of time during which no duties are performed (irrespective of whether the employment relationship has terminated) due to vacation, holiday, illness, incapacity (including disability), layoff, jury duty, military duty or leave of absence.

 

(c)    Each hour for which back pay, irrespective of mitigation of damages, is either awarded or agreed to by the Company or any Subsidiary or Affiliate. Such hours shall be credited to the Employee for the computation period or periods to which the award or agreement pertains.

 

 

	
             
 	
            - 4 -
 

 

 

 

(d)   An Employee will be credited with 200 Hours of Service, to the extent required by Federal law, for each month during which the Employee is on active duty in the Armed Forces of the United States and for which the Employee is not paid or entitled to be paid by the Company or any Subsidiary or Affiliate.

 

(e)    Hours credited for any period under any provision of this Paragraph 1.17 may not also be credited for the same period under any other provisions of this Plan. Hours shall be credited under Subparagraphs 1.17(a) thru (c) pursuant to U.S. Department of Labor Regulations under 29CFR §2530.200b-2, which are incorporated herein by this reference.

 

	
             
 	
            (f)
 	
            For all purposes under the Plan, an Employee shall be credited with 200 Hours of Service for each calendar month in which the Employee would otherwise be credited with one or more Hours of Service.
 

 

(g)    Solely for purposes of determining whether a break in service has occurred in a computation period, and to the extent it does not duplicate Hours of Service credited under any other provision of this Paragraph 1.17, an individual who is absent from work for maternity or paternity reasons shall receive credit for the Hours of Service which would otherwise have been credited to such individual but for such absence, or in any case in which such hours cannot be determined, eight Hours of Service per day of such absence. For purposes of this subparagraph, an absence from work for maternity or paternity reasons means an absence which commences on or after January 1, 1985, and is (i) by reason of the pregnancy of the individual; (ii) by reason of a birth of a child of the individual; (iii) by reason of the placement of a child with
the individual in connection with the adoption of the child by such individual; or (iv) for purposes of caring for such child for a period beginning immediately following such birth or placement. The Hours of Service credited under this subparagraph shall be credited within the computation period in which the absence begins if the crediting is necessary to prevent a break in service in that period, or in all other cases, in the following computation period.

 

	
            1.18
 	
            “Matching Contributions”  means the Company contribution pursuant to Paragraph 4.1 of the Plan.
 

 

	
            1.19
 	
            “Member”  means an Employee who has qualified for membership in accordance with the requirements of this Plan and whose membership has not terminated in accordance with Paragraph 2.3 of the Plan.
 

 

	
            1.20
 	
            “Member’s Account” or “Account”  means a separate account maintained by the Trustee for each Member consisting of (a) one subaccount to which is allocated the Member’s Elective Deferrals, as adjusted for earnings and withdrawals, and realized and unrealized gains and losses attributable thereto; (b) a second subaccount to which is allocated Member Contributions as adjusted for earnings and withdrawals, and realized and unrealized gains 
 

 

 

	
             
 	
            - 5 -
 

 

 

and losses attributable thereto; (c) a third subaccount to which is allocated the Company’s contributions as adjusted for earnings and withdrawals, and realized and unrealized gains and losses attributable thereto; and (d) a fourth subaccount to which is allocated rollovers pursuant to Section 13 and transfers pursuant to Subparagraph 2.6(b) as adjusted for earnings and withdrawals, and realized and unrealized gains and losses attributable thereto.

 

	
            1.21
 	
            “Member Contributions”  means after-tax reductions in the Member’s Annual Earnings pursuant to an Employee Contribution Agreement, which amounts are transferred by the Company to the Trustee.
 

 

	
            1.22
 	
            “Plan” or “Plans”  means the Atlantic Richfield Capital Accumulation Plan as set forth herein, and any amendments thereto.
 

 

	
            1.23
 	
            “Plan Year”  means the period commencing on March 15, 1999 and ending on December 31, 1999. Thereafter, the Plan Year shall be the calendar year.
 

 

	
            1.24
 	
            “Subsidiary” or “Affiliate”  means:
 

 

 (a)         Any corporation 50 percent or more of the voting stock of which is owned directly or indirectly by Atlantic Richfield Company or a Subsidiary or Affiliate; or

 

(b)         Any partnership, joint venture or similar organization 50 percent or more of the profits interest or capital interest of which is owned directly or indirectly by Atlantic Richfield Company or a Subsidiary or Affiliate.

 

	
            1.25
 	
            “Trust Agreement”  means the agreement of trust between the Trustee and Atlantic Richfield Company to hold contributions from the Company, Deferrals and Member Contributions of Members, transfers and rollovers, and investments thereof and earnings thereon.
 

 

	
            1.26
 	
            “Trustee”  means the persons or corporations, or both, designated by the Trust Agreement. The duties and responsibilities of the Trustee shall be those set forth in the Trust Agreement.
 

 

	
            1.27
 	
            “Valuation Date” means the date or dates established by the Administrator for the valuation of the assets of the Plan. In no event shall the assets of the Plan be valued less frequently than once each Plan Year.
 

 

 

	
             
 	
            - 6 -
 

 

 

 

SECTION 2

MEMBERSHIP - ELIGIBILITY

 

	
            2.1
 	
            Membership
 

 

(a)    Elective Deferrals and Member Contributions -  An Employee who is paid on the United States dollar payroll of the Company may become a Member and make Elective Deferrals and/or Member Contributions on or after the Employee’s date of employment. 

 

To become a Member, an Employee must enter into an Employee Contribution Agreement in accordance with Section 3.

 

(b)   Company Contributions -  An Employee who is paid on a United States dollar payroll of the Company shall be eligible for Matching Contributions with respect to Elective Deferrals on the earlier of (i) or (ii) below:

 

	
             
 	
            (i)
 	
            Completion of six months of Credited Company Service, or
 

 

(ii)           The end of any 12-consecutive-month period during which the Employee completes at least 1,000 Hours of Service. Such 12-consecutive-month period shall commence on the Employee’s date of employment or any anniversary thereof.

 

	
            2.2
 	
            Notice to Administrator
 

 

The Company shall advise the Administrator as to the date an Employee becomes a Member. In the event that any question arises as to the eligibility of any Employee, the decision of the Administrator as to such Employee’s eligibility shall be binding upon the Company, the Employees, the Members, the beneficiaries, and any and all other persons having or claiming any interest hereunder.

 

	
            2.3
 	
            Membership Termination
 

 

	
             
 	
            (a)
 	
            An Employee’s membership shall terminate upon:
 

 

(i)          Death, disability, dismissal, retirement or termination of employment for any other reason;

 

(ii)         Continuation of a Participant’s employment with an acquiring corporation in conjunction with a sale to the acquiring corporation of substantially all of the assets used by the Company or any Subsidiary or Affiliate in a trade or business which such entity conducts; or

 

	
             
 	
            (iii)
 	
            A disposition of the Company’s interest in a Subsidiary or
 

 

 

	
             
 	
            - 7 -
 

 

 

Affiliate when the Participant continues employment with such Subsidiary or Affiliate.

 

 (b)        
A Member may not voluntarily
terminate membership in this Plan during active employment with the
Company.

 

 (c)         If a Member transfers to a Subsidiary or Affiliate which is not
participating in this Plan, or to an employment classification excluded from
Plan participation, the Member’s eligibility to make Elective Deferrals and
Member Contributions, and to receive Matching or nonelective Contributions shall
cease, but the Member’s Account shall not be distributed until the Member
has terminated employment with Atlantic Richfield Company or all of its
Subsidiaries or Affiliates or is involved in a sale described in Subparagraph
2.3(a)(ii) or (iii).

 

	
            2.4
 	
            Member Suspension
 

If an Employee is a Member of a defined contribution plan of the Company (including the Predecessor Plans), or a Subsidiary or Affiliate, and the Elective Deferrals to such plan of the Company or Subsidiary or Affiliate are suspended at the time the Employee becomes eligible for membership in this Plan, the Elective Deferrals and Employee’s Contributions to the Plan shall commence with the first full pay period beginning on or after the date on which such period of suspension then in effect under the plan of the Company, or the Subsidiary or Affiliate, ends.

 

	
            2.5
 	
            Member Transfers
 

If a Member transfers to employment with a Subsidiary or Affiliate of the Company, which maintains a capital accumulation plan, the Member’s Account shall be transferred to the capital accumulation plan of the Subsidiary or Affiliate in accordance with procedure established by the Administrator.

 

	
            2.6
 	
            Capital Accumulation Plan Assets
 

 

	
             
 	
            (a)
 	
            Upon the transfer of an Employee eligible to participate in the Plan from a Subsidiary or Affiliate, any assets maintained under a capital accumulation plan of such Subsidiary or Affiliate on behalf of such Employee will be transferred to the Plan in the same investment alternative under which held as of the transfer date, and such transferred assets will be subject to the reinvestment provisions under Paragraph 6.4, except as provided herein:
 

 

	
             
 	
            (i)
 	
            Any assets transferred on behalf of a Member which have been invested in Common Stock of a Subsidiary or Affiliate will remain so invested, with future dividends being reinvested in such stock under the Member’s Account, absent the Member’s direction to reinvest such assets pursuant to 
 

 

 

	
             
 	
            - 8 -
 

 

 

Paragraph 6.4 of the Plan; provided, however, that any assets converted from the Common Stock of a Subsidiary or Affiliate to another investment alternative under the Plan may not be reinvested in Common Stock of a Subsidiary or Affiliate.

 

 (ii)         Common Stock of a Subsidiary or Affiliate held by the Plan shall be subject to the sale and voting provisions of Section 6.

 

(b)   Upon the transfer to the Company from Prestige Stations, Inc., any assets maintained under the Prestige Stations, Inc. 401(k) Plan, on behalf of an Employee eligible to participate in the Plan, shall be converted to cash and transferred to the Plan and allocated to the Employee’s Elective Deferral Account and Company contribution Account, based upon the source of the funds in the Prestige Stations, Inc. 401(k) Plan. Assets from the Prestige Stations, Inc. 401(k) Plan currently held in the Rollover Account, shall be transferred to the Elective Deferral Account and Company contribution Account based upon the source of the funds transferred from the Prestige Stations, Inc. 401(k) Plan.

 

 

	
             
 	
            - 9 -
 

 

 

 

SECTION 3

MEMBERS’ ELECTIVE DEFERRALS

 

	
            3.1
 	
            Members’ Elections
 

 

(a)    Each Member who is an Employee may enter into an Employee Contribution Agreement with the Company providing for withholding of Elective Deferrals and/or Member Contributions from each of the Member’s regular paychecks at a rate of one percent to 27 percent of the Member’s Earnings, in whole percentages. An Employee Contribution Agreement shall remain in effect until changed by the Member, except as otherwise set forth in this Section 3. 

 

(b)   A Member’s election shall be made in the manner prescribed by the Administrator and shall include such information as the Administrator may require. A Member may change the Member’s election with respect to the Member’s rate of future contributions at any time by giving notice in such manner as is prescribed by the Administrator. Such changes shall be effective as soon as administratively feasible after the date of receipt of such notice by the Administrator, or its delegate.

 

(c)    The Company may limit or reduce its Employee Contribution Agreement with any Member at any time, on a nondiscriminatory basis, to the extent necessary to ensure compliance with the limitations of Paragraph 3.3, 3.4, 4.4 or 4.7.

 

(d)   A Member’s Elective Deferrals and Member Contributions will be suspended as follows:

 

(i)     Upon the Member’s transfer, other than on an approved leave of absence, to employment with:

 

(1)   A Subsidiary or Affiliate which is not participating in the Plan; or

 

(2)   Atlantic Richfield Company or any of its Subsidiaries or Affiliates in such foreign countries as the Company shall designate; the Member’s Elective Deferrals and/or Member Contributions shall automatically be suspended while the Member remains in such employment.

 

(ii)    Upon the Member’s transfer to an employee group of the Company that is not participating in the Plan.

 

	
             
 	
            (iii)
 	
            As described in Section 7.
 

 

	
            3.2
 	
            Contribution of Elective Deferrals and Member Contributions
 

 

 

 

	
             
 	
            - 10 -
 

 

 

 

The Company shall pay to the Trustee on behalf of each Member the Elective Deferrals and Member Contributions elected by the Member. A Member’s Elective Deferrals and Member Contributions shall be paid to the Trustee the earlier of the date such Elective Deferrals and Member Contributions can reasonably be segregated from the Company’s general assets or the 15th day of the month following the month in which the Elective Deferrals and Member Contributions would have been paid to the Member. Elective Deferrals and Member Contributions may be paid to the Trustee in the following forms:

 

	
             
 	
            (a)
 	
            To the extent that a Member has directed pursuant to the Plan that his or her Elective Deferrals and/or Member Contributions be invested in an investment alternative other than the BP Amoco Stock Fund, such Elective Deferrals and/or Member Contributions shall be paid to the Trustee in cash; and
 

 

	
             
 	
            (b)
 	
            To the extent that a Member has directed pursuant to the Plan that his or her Elective Deferrals and/or Member Contributions be invested in the BP Amoco Stock Fund such Elective Deferrals and/or Member Contributions may be paid to the Trustee in cash, in BPA ADRs, or in any combination thereof.
 

 

	
            3.3
 	
            Annual Dollar Limitation
 

 

(a)    A Member’s Elective Deferrals for a calendar year, when considered together with the amount of salary reduction elected by the Member under any other plan meeting the requirement of §401(k) of the Code, may not exceed $10,000, as adjusted pursuant to Code §415(d).

 

(b)   Once a Member’s Elective Deferrals reach the limitation described in Subparagraph 3.3(a), all subsequent deferrals will be suspended for the remainder of the calendar year. Elective Deferrals will automatically resume on the following January 1. Unless the Member elects to change the Elective Deferral percent according to Paragraph 3.1, Elective Deferrals will resume at the rate in effect on the suspension date.

 

(c)    If a Member notifies the Administrator on or before March 31 after the close of a calendar year that the Member’s total Elective Deferrals (within the meaning of §402(g)(3) of the Code) for such calendar year exceed the limitation of Subparagraph 3.3(a), the Administrator shall direct that such excess Elective Deferrals, plus any income and minus any loss allocable thereto for the calendar year, be distributed no later than the April 15 following notification to the Administrator. A Member is deemed to notify the Administrator of Elective Deferrals in excess of the limitation in Subparagraph 3.3(a) that arise by taking into account those Elective Deferrals made to the Plan or to any other Plan of the Company or a Subsidiary or Affiliate.

 

(d)   For purposes of Subparagraph 3.3(c), gain or loss allocable to excess Elective Deferrals shall be computed under the method used by the Plan to allocate 

 

 

	
             
 	
            - 11 -
 

 

 

gains and losses.

 

	
            3.4
 	
            Actual Deferral Percentage Tests
 

 

The Plan shall comply with the requirements of §401(k)(3) of the Code, the regulations thereunder, including Treas. Reg. 1.401(k)-1(b) and Internal Revenue Service guidance in this regard, which provisions are incorporated herein by this reference. To the extent permitted by regulations, Matching Contributions described in Paragraph 4.1 and nonelective contributions described in Paragraph 4.8 may, at the discretion of the Administrator, be deemed Elective Deferrals for purposes of this Paragraph 3.4. Effective July 1, 1997, in determining whether the Plan satisfies the requirements of §401(k)(3) of the Code, the Plan shall use the prior-year testing method. Effective January 1, 2000, in determining whether the Plan satisfies the requirements of Section 401(k)(3) of the Code, the Plan shall use the current-year testing method.

 

	
            3.5
 	
            Distribution of Excess Contributions
 

 

(a)    If the average actual deferral percentage test of Paragraph 3.4 is not satisfied for a Plan Year, then the Excess Contributions, as defined below, and gain or loss allocable thereto, shall be distributed, to the extent required under Treasury regulations, no later than the last day of the Plan Year following the Plan Year for which the Excess Contributions were made.

 

(b)   Effective July 1, 1997, for purposes of this paragraph, Excess Contributions shall consist of the excess of the aggregate amount of Elective Deferrals made by or on behalf of the affected Highly Compensated Employees over the maximum amount of all such contributions permitted under the test of Paragraph 3.4. In reducing the excess contributions hereunder, the reduction shall be first applied to the Highly Compensated Employee with the highest percentage under Paragraph 3.4. If reductions are further required to comply with Paragraph 3.4, such reductions shall be applied to the Highly Compensated Employee with the next highest percentage, and so forth until the nondiscrimination test of Paragraph 3.4 is satisfied. The aggregate amount of reductions determined in the preceding sentence shall be distributed, together with gain or
loss allocable thereto, to the Highly Compensated Employees with the highest dollar amount of Elective Deferrals. The Elective Deferrals of the Highly Compensated Employee with the highest dollar amount of Elective Deferrals are reduced by the amount required to cause such Highly Compensated Employee’s Elective Deferrals to equal the Elective Deferral amount of the Highly Compensated Employee with the next highest dollar amount of Elective Deferrals. If the total amount distributed to the Highly Compensated Employee is less than the total Excess Contribution, this process shall be repeated until the total Excess Contributions are distributed.

 

(c)    The gain or loss allocable to
Excess Contributions shall be determined by multiplying the gain or loss
allocable to the Member’s Elective Deferrals for the Plan

 

 

	
             
 	
            - 12 -
 

 

 

 Year by a fraction, the numerator of which is the Excess Contributions made on behalf of the Member for the Plan Year, and the denominator of which is the sum of the Member’s Account balances attributable to the Member’s Elective Deferrals amounts on the last day of the Plan Year.

 

	 3.6
	 Make-Up
        Elective Deferrals and Member Contributions

 

Notwithstanding any provision of the Plan to the contrary, Elective Deferrals and Member Contributions with respect to qualified military service may be made in accordance with §414(u) of the Code.

 

 

	
             
 	
            - 13 -
 

 

 

 

SECTION 4

COMPANY CONTRIBUTION

 

	
            4.1
 	
            Matching Contribution
 

 

Subject to the provisions of Paragraphs 4.3 and 4.4, for each pay period, the Company shall pay to the Trustee a contribution on behalf of each Member equal to 160 percent of the Member’s Elective Deferrals, including Elective Deferrals under Paragraph 3.6, which do not exceed five percent of the Member’s Earnings for the pay period. This contribution shall be made no later than 30 days following the date on which the related Member Deferrals are made, or as soon as administratively practicable, if later.

 

	
            4.2
 	
            Form of Contribution
 

 

Matching Contributions shall made in the form of cash, BPA ADRs or any combination thereof.

 

	
            4.3
 	
            Members Excluded From Contribution
 

 

The Matching Contribution shall not be made on behalf of a Member described in one or more of the following subparagraphs:

 

	
             
 	
            (a)
 	
            A Member who is an officer of Atlantic Richfield Company; or
 

 

	
             
 	
            (b)
 	
            A Member whose base salary is more than $150,000 on an annualized basis.
 

 

	
            4.4
 	
            Actual Contribution Percentage Test
 

 

With respect to Member Contributions and Matching Contributions, the Plan shall comply with the requirements of §401(m)(2) of the Code, the regulations thereunder, including Treas. Reg. §1.401(m)-1(b) and Internal Revenue Service guidance in this regard, which provisions are incorporated herein by this reference. To the extent permitted by regulations, Elective Deferrals described in Paragraph 3.1 and nonelective contributions described in Paragraph 4.8 may, at the discretion of the Administrator, be taken into account in satisfying the requirements of this Paragraph 4.4. Effective July 1, 1997, in determining whether the Plan satisfies the requirements of Section 401(m)(2) of the Code, the Plan shall use the prior-year testing method. Effective January 1, 2000, in determining whether the Plan satisfies the requirements of Section 401(m)(2) of the Code, the Plan shall use the
current-year testing method.

 

	
            4.5
 	
            Distribution of Excess Aggregate Contributions
 

 

(a)    If the nondiscrimination tests of Paragraph 4.4 are not satisfied for a Plan Year, then the Excess Aggregate Contributions, as defined below, and any gain or loss allocable thereto, shall be distributed to the Member on whose behalf the Excess 

 

 

	
             
 	
            - 14 -
 

 

 

Aggregate Contributions were made no later than the last day of the Plan Year following the Plan Year for which such Excess Aggregate Contributions were made. Member Contributions shall be distributed before Matching Contributions.

 

Notwithstanding the foregoing, to the extent otherwise required to comply with the requirements of §401(a)(4) of the Code and regulations thereunder, vested Matching Contributions may be forfeited.

 

(b)   Effective July 1, 1997, for purposes of this paragraph, Excess Aggregate Contributions shall consist of the excess of the amount of Member Contributions, Matching Contributions, and Elective Deferrals (to the extent not used to satisfy the average actual deferral percentage test of Section 3.4) made on behalf of the affected Highly Compensated Employees over the maximum amount of all such contributions permitted under the nondiscrimination tests under Paragraph 4.4. In reducing the Excess Aggregate Contributions hereunder, the reduction shall be first applied to the Highly Compensated Employee with the highest percentage under Paragraph 4.4. If reductions are further required to comply with Paragraph 4.4, such reductions shall be applied to the Highly Compensated Employee with the next highest percentage, and so forth until the
nondiscrimination tests of Paragraph 4.4 are satisfied. The aggregate amount of reductions determined in the preceding sentence shall be distributed together with gain or loss allocable thereto, to the Highly Compensated Employees with the highest dollar amount of Member Contributions and Matching Contributions. The Member Contributions and Matching Contributions of the Highly Compensated Employee with the highest dollar amount of such contributions are reduced by the amount required to cause such Highly Compensated Employee’s Member Contributions and Matching Contributions to equal the Member Contributions and Matching Contributions of the Highly Compensated Employee with the next highest dollar amount of such contributions. If the total amount distributed to the Highly Compensated Employee is less than the total Excess Aggregate Contribution, this process shall be repeated until the total Excess Aggregate Contributions are distributed.

 

(c)    The gain or loss allocable to Excess Aggregate Contributions shall be determined by multiplying the gain or loss allocable to such contributions by a fraction, the numerator of which is the Excess Aggregate Contributions on behalf of the Member for the Plan Year, and the denominator of which is the sum of the Member’s Account balances attributable to Excess Aggregate Contributions on the last day of the Plan Year.

 

	
            4.6
 	
            Limitation On The Multiple Use Alternative
 

 

(a)    The sum of the average actual deferral percentage of Highly Compensated Employees under Paragraph 3.4 and the average contribution percentage of Highly Compensated Employees under Paragraph 4.4 shall not exceed the “aggregate limit”, as defined in §401(m)(9) of the Code and the regulations thereunder.

 

 

	
             
 	
            - 15 -
 

 

 

 

(b)   If the aggregate limit is exceeded, the average contributions percentage of the Highly Compensated Employees shall be reduced in accordance with the provisions of Paragraph 4.5. In lieu of reducing the average contribution percentage, the Administrator may reduce the average actual deferral percentage of the Highly Compensated Employees in accordance with the provisions of Paragraph 3.4. The reductions under this paragraph shall be made only to the extent necessary to comply with the restrictions on the multiple use of the alternative limitation within the meaning of Code §401(m)(9).

 

	
            4.7
 	
            Section 415 Limitations
 

 

(a)    In addition to other limitations set forth in the Plan and notwithstanding any other provisions of the Plan, “annual additions” made to this Plan (and all other defined contribution plans required to be aggregated with the Plan under the provisions of §415 of the Code) shall not exceed an amount in excess of the limit set forth in such section of the Code. For purposes of calculating such limit under §415 of the Code, the “limitation year” shall be the calendar year. Elective Deferrals, Member Contributions and Matching Contributions in excess of the actual deferral and contribution percent tests of Sections 3.4 and 4.4 are considered annual additions even if corrected through distribution.

 

(b)   If the limitations described in §415(c) of the Code are exceeded for a Member for a limitation year, the excess will be eliminated as follows:

 

(i)     Provisions of any other defined contribution plans established by the Company or a Subsidiary or Affiliate which have caused the limits to be exceeded will be applied; provided, however, that if such other Plan is described in §401(k) of the Code, the provisions of the Plan in which the Member is active as of the last day of the limitation year shall be applied before the provisions of the Plan in which the Member is inactive.

 

(ii)    Amounts attributable to after-tax contributions made by the Member to the Plan (or any other plan maintained by the Company or any Subsidiary or Affiliate) shall be paid to the Member.

 

(iii)   Amounts attributable to Elective Deferrals made by a Member to the Plan (or any other plan maintained by the Company or a Subsidiary or Affiliate) shall be paid to the Member.

 

(iv)   The excess, if any, will be held unallocated in a suspense account. The suspense account will be applied to reduce contributions for remaining Members in the limitation year, and each succeeding limitation year, if necessary. If a suspense account is in existence at any time during the limitation year pursuant to this subparagraph, it will not participate in the 

 

 

	
             
 	
            - 16 -
 

 

 

allocation of the investment gains and losses.

 

(c)    Prior to January 1, 2000, if the limitations described in §415(e) of the Code are exceeded for a Member for a limitation year, the excess will be eliminated by applying the provisions of the defined benefit plan in which the Member participates.

 

	
            4.8
 	
            Nonelective Contributions
 

 

(a)    The Administrator, in its sole discretion, may make a nonelective contribution to the Accounts of certain Members who are not highly compensated to the extent necessary to satisfy the requirement of Paragraph 3.4 and/or 4.4 of the Plan, or to assist the Plan or any other plan of the Company or any Subsidiary or Affiliate to satisfy the requirements of §410(b) of the Code.

 

 (b)     A contribution under Subparagraph 4.8(a) shall be allocated to eligible Members in the ratio that the Earnings of each such Member for the Plan Year bears to the total Earnings of all such Member’s for the Plan Year.

 

 (c)      The Company shall make contributions necessary to reinstate Members’ Accounts pursuant to Paragraph 10.8 of the Plan.

 

(d)     The Company may make contributions necessary to correct administrative errors relative to a Member’s Account.

 

	
            4.9
 	
            Exclusive Benefit
 

 

The corpus or income of the trust may not be divested to or used for other than the exclusive benefit of the Members and their beneficiaries and to defray reasonable expenses of administering the Plan.

 

 

 

	
             
 	
            - 17 -
 

 

 

 

SECTION 5

FINANCED SHARES

[Effective as of April 18, 2000

Acquisition Loans are no Longer Permitted under the Plan]

 

	
            5.1
 	
            Acquisition Loans
 

 

Atlantic Richfield Company, by action of its Treasurer, may direct the Trustee to incur Acquisition Loans from time to time to finance the acquisition of Atlantic Richfield Company Common Stock (Financed Shares) under the ESOP Part of the Plan or to repay a prior Acquisition Loan. For this purpose, an installment obligation incurred in connection with the purchase of Atlantic Richfield Company Common Stock shall be treated as an Acquisition Loan. 

 

An Acquisition Loan shall be for a specific term, shall bear a reasonable rate of interest, and shall not be payable on demand except in the event of default. An Acquisition Loan may be secured by a pledge of the Financed Shares so acquired (or acquired with the proceeds of a prior Acquisition Loan which is being refinanced). No other assets of the Plan may be pledged as collateral for an Acquisition Loan, and no lender shall have recourse against assets of the Plan other than Financed Shares remaining subject to pledge. If the lender is a “party in interest” [as defined in §3(14) of ERISA], the Acquisition Loan must provide that in the event of default, assets of the Plan may be transferred to the lender only upon, and to the extent of, the failure of the Plan to meet the payment schedule of the Acquisition Loan. Any pledge of Financed Shares must provide for the release
of the shares so pledged as payments on the Acquisition Loan are made by the Trustee and such Financed Shares are allocated to Members’ Accounts under Paragraph 5.2.

 

Payments of principal and/or interest on any Acquisition Loan shall be made by the Trustee, as directed by the Company, only from: (a)  Company Contributions paid in cash to enable the Plan to make payments on such Acquisition Loan [including Elective Deferrals and Member Contributions, to the extent that Members have directed pursuant to the Plan that such Elective Deferrals and/or Member Contributions be invested in shares of Atlantic Richfield Company Common Stock under the ESOP Part of the Plan] and earnings attributable thereto; (b) the proceeds of any Acquisition Loan and the earnings attributable thereto; and (c) any cash dividends received by the Plan on the Financed Shares purchased with the proceeds of such Acquisition Loan. The payments made with respect to an Acquisition Loan for a Plan Year must not exceed the sum of such Matching Contributions, Elective Deferrals, Member
Contributions, proceeds, earnings, and dividends for that Plan Year and prior Plan Years, as reduced by the amount applied to make such payments in prior Plan Years. As directed by Atlantic Richfield Company, the Trustee also may sell any Financed Shares that have not yet been allocated to Members’ Accounts and use the proceeds from such sale to pay principal and/or interest on the Acquisition Loan used to acquire such shares.

 

	
            5.2
 	
            Payments on Acquisition Loan
 

 

 

	
             
 	
            - 18 -
 

 

 

 

The acquisition of Atlantic Richfield Company Common Stock with the proceeds of an Acquisition Loan may be made on the open-market, or from the Company, in a single purchase or a series of purchases over a period of time. Prior to use for such purchase or purchases, the Acquisition Loan proceeds may be invested by the Trustee (as directed by Atlantic Richfield Company) in interest-bearing accounts or instruments. Interest derived therefrom shall be applied to make payments on the Acquisition Loan, or, if the Acquisition Loan has been repaid in full, shall be allocated as of the last day of the Plan Year among the Accounts of all Members who have not terminated membership pursuant to Paragraph 2.3 as of such date in proportion to their Earnings for the Plan Year.

 

All Financed Shares acquired by the Plan shall initially be credited to a loan suspense account, and will be allocated to the Members’ Accounts only as payments on the Acquisition Loan are made. Release from the loan suspense account for allocation to Members’ Accounts in each Plan Year shall be based on shares of stock or other non-monetary units, rather than by dollar amount, and shall not be less than the number calculated as follows:

 

(a)    The number of Financed Shares held in the loan suspense account immediately before the release in the current Plan Year shall be multiplied by a fraction, the numerator of which is the amount of principal and interest paid on the Acquisition Loan for that Plan Year, and the denominator of which is the sum of the numerator plus the total payments of principal and interest on that Acquisition Loan projected to be paid for all future Plan Years. For this purpose, the interest to be paid in future Plan Years is computed by using the interest rate in effect as of the last day of the current Plan Year.

 

(b)   In lieu of the method described in Subparagraph 5.2(a), the Company may elect (as to each Acquisition Loan) or the provisions of the Acquisition Loan may provide for the release of Financed Shares from the loan suspense account based solely on the ratio that the payments of principal for each Plan Year bear to the total principal amount of the Acquisition Loan. This method may be used only if:  (i) the Acquisition Loan provides for annual payments of principal and interest at a cumulative rate that is not less rapid at any time than level annual payments of such amounts for ten years; (ii) interest included in any payment on the Acquisition Loan is disregarded only to the extent that it would be determined to be interest under standard loan amortization tables; and (iii) the entire duration of the Acquisition Loan repayment period
does not exceed ten years, even in the event of a renewal, extension, or refinancing of the Acquisition Loan. 

 

As of each date that payments (other than payments with the proceeds of a new Acquisition Loan) are made on an Acquisition Loan, the Financed Shares released from the loan suspense account shall be allocated to Members’ Accounts in proportion to the amounts debited from each Member’s Account to make the Acquisition Loan payments.

 

 

	
             
 	
            - 19 -
 

 

 

 

SECTION 6

INVESTMENT OF MEMBERS’ AND FORMER MEMBERS’ ACCOUNTS

 

	
            6.1
 	
            Members’ and Former Members’ Accounts
 

 

The Administrator shall establish and maintain an Account in the name of each Member and Former Member. Separate records shall be maintained with respect to the portion of a Member’s or Former Member’s Account attributable to Elective Deferrals, Member Contributions, rollovers under Section 13, Matching Contributions, and earnings thereon.

 

	
            6.2
 	
            Investment of the Member’s Account
 

 

	
             
 	
            (a)
 	
            In accordance with procedures established by the Administrator, the Member’s Account shall be invested by the Trustee among the investment alternatives authorized by the Administrator in the proportion indicated by the Member or Former Member in his or her investment directions provided to the Administrator, or its delegate.
 

 

	
             
 	
            (b)
 	
            Notwithstanding anything in the Plan to the contrary, the Trustee may limit the daily volume of purchases or sales of BPA ADRs to the extent it believes such action to be in the best interest of Members or Former Members. 
 

 

	
             
 	
            (c)
 	
            In order to convert Atlantic Richfield Common Stock into BPA ADRs, effective as of dates determined in writing by the Senior Vice President, Human Resources, trading in Atlantic Richfield Common Stock or BPA ADRs will not be allowed by the Plan. Shares of Atlantic Richfield Common Stock may not be converted into any shares that are not traded on the New York Stock Exchange.
 

 

	
            6.3
 	
            Investment of Company Contributions
 

 

	
             
 	
            (a)
 	
            Except as provided in Subparagraph 6.3(c), Matching Contributions shall be credited to the Member’s BP Amoco Stock Fund Account.
 

 

	
             
 	
            (b)
 	
            Matching Contributions credited to a Member’s or Former Member’s Account may be invested pursuant to Paragraph 6.4 in any of the investment alternatives authorized by the Administrator.
 

 

	
             
 	
            (c)
 	
            A Member or Former Member who has attained age 55 may invest Matching Contributions in any of the investment alternatives authorized by the Administrator.
 

 

	
            6.4
 	
            Member or Former Member Direction Of Investments
 

 

In accordance with procedures established by the Administrator, each Member or Former Member may direct how his or her Account is to be invested among the available investment funds. In the event a Member or Former Member fails to make an investment 

 

 

	
             
 	
            - 20 -
 

 

 

election, with respect to all or any portion of his or her Account, the Trustee shall invest all or such portion of his or her Account in the investment fund to be designated by the Administrator. Under procedures established by the Administrator, a Member or Former Member may change his or her investment election, with respect to future contributions and amounts previously accumulated in the Member’s or Former Member’s Account. Any such change in a Member’s or Former Member’s investment election shall be effective at such time as may be prescribed by the Administrator.

 

	
            6.5
 	
            Allocation of Investment Experience
 

 

As of each Valuation Date, the investment funds of the Trust shall be valued at fair market value, and the income, loss, appreciation and depreciation (realized and unrealized), and any paid expenses of the Trust attributable to any such fund shall be apportioned among Members’ or Former Members’ Accounts within the fund based upon the value of each Account within the fund as of the preceding Valuation Date.

 

	
            6.6
 	
            Manner and Time of Debiting Distributions
 

 

For any Member or Former Member who is entitled to receive a distribution from his or her Account, the amount distributed shall be based upon the fair market value of the Member’s or Former Member’s Account as of the Valuation Date immediately preceding the distribution.

 

	
            6.7
 	
            Title of Investments
 

 

All investments will be held in the name of the Trustee or its nominees.

 

	
            6.8
 	
            Voting of Investments
 

 

Except as provided in Paragraph 6.9, the Trustee in accordance with the Trust Agreement, shall exercise all voting and other rights associated with any investments held in the Plan.

 

	
            6.9
 	
            Voting of BPA ADRs
 

 

The Trustee shall vote shares of BPA ADRs held by the Trustee in accordance with procedures set forth in the Trust Agreement.

 

	
            6.10
 	
            Investment Advisory Fees
 

 

The investment advisory fees, if any, incurred for management of any of the investment funds are charged to each respective fund.

 

	
            6.11
 	
            Member or Former Member Protection
 

 

 

 

	
             
 	
            - 21 -
 

 

 

 

No shares of Atlantic Richfield Company Common Stock held by the ESOP Part of the Plan may be subject to a put, call or other option, or buy/sell or similar arrangement. The provisions of this Paragraph 6.12 shall continue to be applicable to the shares of BPA ADRs which are attributable to Atlantic Richfield Company Common Stock formerly held by the ESOP Part of the Plan.

 

	
            6.12
 	
            Confidentiality
 

 

The Capital Accumulation Plan Administrative Committee shall be responsible for ensuring the adequacy of procedures established by the Administrator to safeguard the confidentiality of information relating to the purchasing, holding and selling of BPA ADRs and any voting, tender or similar rights relating to such stock.

 

	
            6.13
 	
            Conversion of Atlantic Richfield Company Common Stock
 

 

Effective with the merger of Atlantic Richfield Company and a subsidiary of BPA, all shares and partial shares of Atlantic Richfield Company Common Stock shall be converted to BPA ADRs.

 

 

 

	
             
 	
            - 22 -
 

 

 

 

SECTION 7

WITHDRAWALS DURING EMPLOYMENT

 

	
            7.1
 	
            Age 591⁄2 Withdrawal
 

 

A Member who has attained age 591⁄2 may request that all or a portion of the Member’s Account be paid to the Member. The request must be made at such time and in such manner as prescribed by the Administrator.

 

	
            7.2
 	
            Application and Basis for Hardship Withdrawal
 

 

(a)    A Member may at any time request that the Member’s Elective Deferrals (but not the earnings thereon) be paid to the Member due to financial hardship. The request must be made to the Administrator at such time and in such manner as prescribed by the Administrator and shall include such documentation and/or written explanation requested by the Administrator.

 

(b)   The Administrator shall authorize a withdrawal on account of financial hardship only upon making a written determination that the withdrawal does not exceed the amount of the immediate and heavy financial need of the Member, including amounts withheld for taxes and the amount of any early distribution taxes, if any, and that the withdrawal is based on the need for funds under one or more of the five following circumstances:

 

(i)     The payment of unreimbursable medical expenses described in §29(d) of the Code previously incurred by the Member, the Member’s spouse, or any dependents of the Member (as defined in §152 of the Code) or necessary for these persons to obtain medical care;

 

(ii)    The payment of all or a portion of the purchase price (excluding mortgage payments) of a principal residence of the Member;

 

(iii)   The payment of tuition and related educational expenses for the next 12 months of post-secondary education for the Member, his or her spouse, children or dependents, as defined in Code §152;

 

(iv)   The need to prevent the eviction of the Member from his or her principal residence or foreclosure on the mortgage of the Member’s principal residence; and

 

(v)    The need to satisfy a judgment of a federal, state or local court against the Member (such withdrawal will be permitted only if a written determination is made that such withdrawal is necessary in light of immediate and heavy financial need of the Member).

 

 

 

	
             
 	
            - 23 -
 

 

 

 

	
             
 	
            (c)
 	
            Hardship withdrawals shall be paid as follows:
 

 

(i)     A hardship withdrawal shall be paid in a single payment to the Member within 60 days following the Administrator’s favorable determination.

 

(ii)    A hardship withdrawal shall not cause a termination of Membership in the Plan.

 

	
             
 	
            (d)
 	
            As a condition to receiving the withdrawal:
 

 

(i)     The Member must have obtained all distributions and all nontaxable loans available as of the date of the withdrawal under this Plan and any other employee benefit plan maintained by the Company and any Subsidiary or Affiliate;

 

(ii)    The Member’s contributions to the Plan and any other defined contribution or defined benefit employee pension benefit plan maintained by the Company and any Subsidiary or Affiliate are to be suspended for 12 months; and Elective Deferrals shall be suspended for the remainder of the calendar year in which the hardship distribution occurs and the calendar year immediately following such calendar year.

 

	
            7.3
 	
            Partial Withdrawals of Member Contributions
 

 

(a)    An application for partial withdrawal of funds attributable to Member Contributions must be in the form prescribed by the Administrator. Distribution will be made as soon as practicable after the date the application is received by the Administrator.

 

(b)   A Member may make the following partial withdrawals during employment with the Company; provided, that (i) partial withdrawals under this Paragraph 7.3 are made at not less than six-month intervals, and (ii) Member Contributions made prior to January 1, 1987, must be withdrawn prior to withdrawal of any other contributions and earnings:

 

(i)     Items in the Member’s Account derived from Member Contributions, and earnings thereon (Member Contributions made prior to January 1, 1987 must be withdrawn first);

 

(ii)    Items in the Member’s Account derived from Company contribution to an ARCO Savings Plan made prior to July 1, 1988, and earnings thereon; and 

 

 

 

	
             
 	
            - 24 -
 

 

 

 

(c)    In addition to the withdrawals described in Subparagraph 7.3(b), a Former Member of the Union Texas Petroleum Savings Plan for Salaried Employees (the “UTP Plan”) whose account balance has been transferred to the Plan and who has withdrawn all Member Contributions made to such plan prior to January 1, 1987, and earnings thereon, may withdraw the following amounts:

 

(i)     If the Member made elective deferrals to the UTP Plan for at least 60-consecutive months, all or a portion of the Member’s Company Contributions, and earnings thereon, under the UTP Plan; and

 

(ii)    If the Member has not made elective deferrals for at least 60-consecutive months, Company Contributions under the UTP Plan and earnings thereon that have been held in the UTP Plan and this Plan for at least 24 months.

 

 

	
             
 	
            - 25 -
 

 

 

 

SECTION 8

PAYMENTS ON TERMINATION OF MEMBERSHIP OR OTHER REASONS

 

	
            8.1
 	
            Termination of Membership
 

 

(a)    If a Member’s membership in the Plan is terminated due to disability, termination of employment for any other reason except death, or as the result of a sale described in Subparagraphs 2.3(a)(ii) or (iii), the Member may receive all items in the Member’s Account. Each Member shall be fully vested at all times in all items in the Member’s Account, whether the same be derived from Elective Deferrals, Member Contributions, Company Contributions or rollovers, and earnings thereon.

 

(b)   Upon the election of the Member who has terminated membership, all items in such Member’s Account shall be distributed to the Member. With respect to a Former Member who does not request a distribution:

 

(i)     Notwithstanding anything to the contrary in this Paragraph 8.1, a Former Member’s Account shall be distributed in accordance with the provisions of Paragraph 8.7;

 

(ii)    In the case of the Former Member’s death prior to final distribution, the Former Member’s Account shall be distributed in accordance with Paragraph 8.2 of the Plan; and

 

(iii)   No loans or hardship withdrawals may be taken following termination of membership or disability.

 

(c)    Notwithstanding anything to the contrary in this Paragraph 8.1, all items in the Account of a Member who has terminated membership, and whose Account balance is $5,000 or less on the date of determination, shall be distributed as soon as administratively practicable following the Member’s termination of membership, unless the Member elects an earlier distribution date. 

 

	
             
 	
            (d)
 	
            Notwithstanding anything in the Plan to the contrary, when a Former Member elects to receive all items in the Former Member’s Account and, in conjunction therewith, directs that items in his or her Account be converted pursuant to Paragraph 6.4, the conversion shall be transacted on the later of the first transaction date under the Plan following the Administrator’s receipt of a request for distribution, or the date of termination. Distribution under this Paragraph 8.1 shall be made in accordance with the requirements of (409(h) of the Code in the form of cash, Company stock or a combination thereof, as elected by the Member. If the Member does not make an election hereunder, all investment alternatives shall be converted to cash.
 

 

 

 

	
             
 	
            - 26 -
 

 

 

 

(e)    Under procedures established by the Administrator, distributions under this Paragraph 8.1 may be made under any of the following forms of payment, or any combination thereof:

 

	
             
 	
            (i)
 	
            Lump sum distribution;
 

 

(ii)           Installment payments, not to exceed 20 years if a specific period is requested; or

	
             
 	
            (iii)
 	
            Partial withdrawals.
 

 

	
            8.2
 	
            Death
 

 

(a)    If a Member or Former Member dies and it is established to the Plan’s satisfaction that the consent required under Subparagraph 8.2(c), either has been obtained or was not obtainable, all items in the Member’s or former Member’s Account shall be paid to the beneficiary or beneficiaries most recently designated by the Member or Former Member in such manner as prescribed by the Administrator. If no such designation shall have been made, or if all designated beneficiaries should die before the Member or former Member, payment shall be made to the Member’s or former Member’s estate.

 

(b)   Except as provided in Subparagraph 8.2(c), if a Member or former Member is survived by a spouse, all items in the Member’s or former Member’s Account shall be paid to the Member’s spouse.

 

 (c)     If a Member or former Member is survived by a spouse, all items in a Member’s or former Member’s Account shall be paid to the beneficiary or beneficiaries most recently designated by the Member or former Member in such manner as prescribed by the Administrator; provided, (i) the surviving spouse of the Member or former Member has irrevocably consented in writing to the designation of the specific beneficiary or beneficiaries, which designation may not be changed without spousal consent (or the spouse expressly permits designations by the Member or Former Member without any further spousal consent), such consent acknowledged the effect of the election and such consent was witnessed by a notary public, or (ii) it is established to the Plan’s satisfaction that
the consent required by Subparagraph 8.2(c)(i), could not be obtained because the surviving spouse could not be located or because of such other circumstances as the Secretary of Treasury may by regulation prescribe. Any consent necessary under this paragraph shall be effective only with respect to such spouse, or, in the event it is established that the consent may not be obtained, such designated spouse. A revocation of a prior designation may be made by a Member or Former Member without the consent of the spouse at any time prior to the Member’s for Former Member’s death. A consent that permits designation by the Member or Former Member without any requirement for further consent by the spouse must acknowledge that the spouse has the right to limit consent to a specific beneficiary and that the spouse voluntarily elects to relinquish such right.

 

 

 

	
             
 	
            - 27 -
 

 

 

 

	
             
 	
            (d)
 	
            Payment under this Paragraph 8.2 may be made in any form of distribution permitted by Paragraph 8.1; provided, however, that all items in the Member’s or Former Member’s Account shall be paid no later than December 31 of the calendar year which contains the fifth anniversary of the date of the Member’s death. Prior to distribution, the beneficiary shall have the rights of a Former Member under Section 6 and Paragraph 8.1; provided, however, that the beneficiary may not elect installments or partial withdrawals under Subparagraphs 8.1(e)(ii) and (iii).
 

 

	
            8.3
 	
            Disability
 

 

(a)    A Member who is determined to be disabled may elect to receive a distribution of such Member’s Account in accordance with Paragraph 8.1.

 

(b)   A Member is disabled if as a result of a medically determinable physical or mental impairment resulting from illness or injury the Member is unable to perform one or more of the substantial duties of the Member’s normal work assignment with the Company or of any work assignment which the Company determines is available to the Member and for which the Member is reasonably qualified by education, training or experience to perform as determined by the Administrator after review by the entity designated by the Administrator.

 

	
            8.4
 	
            Divorce
 

 

To the extent a Qualified Domestic Relations Order (“QDRO”), as defined in §414(p) of the Code, is received by the Plan, distributions from a Member’s Account shall be made to an Alternate Payee, as defined in §414(p) of the Code, as soon as administratively possible following the determination of the order’s qualified status.

 

	
            8.5
 	
            Rollover
 

 

(a)    Notwithstanding anything in this Section 8 to the contrary, a distributee, as defined below, may elect, at a time and in the manner prescribed by the Administrator, to have all or a portion of a distribution under this Section 8, other than any Member Contributions and any amount required to be distributed pursuant to §401(a)(9) of the Code, made payable to an eligible retirement plan.

 

(b)   For purposes of this Section 8, other than Paragraph 8.2, an eligible retirement plan is an individual retirement account or annuity described in §408(a) or (b) of the Code, an annuity plan described in §403(a) of the Code or a qualified trust described in §401(a) of the Code that accepts such distribution. For purposes of a distribution under Paragraph 8.2, an eligible retirement plan is an individual retirement account or annuity.

 

(c)    
Distributee means an Member or Former Member, the surviving spouse of

 

 

	
             
 	
            - 28 -
 

 

 

such
Member or such Member’s spouse or former spouse who is an alternate payee as defined in §414(p) of the Code.

 

	
            8.6
 	
            Notice
 

 

With respect to a Former Member whose account exceeds $5,000, the Administrator shall provide the notice required by §1.411(a)-11(c) of Income Tax Regulations no less than 30 days and no more than 90 days before the Former Member’s date of distribution; provided, however, that such distribution may commence less than 30 days after the required notice is given if:

 

(a)    The Former Member is informed of the Former Members’ right to a period of at least 30 days after receiving the notice to consider distribution options; and

 

	
             
 	
            (c)
 	
            The Former Member, after receiving the notice, affirmatively elects a distribution.
 

 

The distribution shall commence no earlier than seven days following the date the notice, described above, is provided to the Former Member.

 

	
            8.7
 	
            Distributions
 

 

(a)    All distributions required under the Plan shall be determined and made in accordance with the proposed regulations under §401(a)(9) of the Code, including the minimum distribution incidental benefit requirement of §1.401(a)(9)-2 of the proposed regulations.

 

(b)   The entire interest of a Member must be distributed or begin to be distributed no later than the Member’s required beginning date. The required beginning date of a Member is the later of the April 1 of the calendar year following the calendar year in which the Member attains age 701⁄2 or retires, except that benefit distributions to a five-percent owner must commence by the April 1 of the calendar year following the calendar year in which the Member attains age 701⁄2.

 

(c)    As of the first distribution calendar year, as defined below, distributions, if not made in a single-sum, may only be made over one of the following periods (or a combination thereof):

 

	
             
 	
            (i)
 	
            The life of the Member;
 	
             

	
             
 	
            (ii)
 	
            The life of the Member and a designated beneficiary;
 

(iii)   A period certain not extending beyond the life expectancy of the Member; or 

(iv)   A period certain not extending beyond the joint and last survivor expectancy of the Member and a designated beneficiary.

 

  (d)   The
    amount required to be distributed for each calendar year, beginning with 

 

 

	
             
 	
            - 29 -
 

 

 

  distributions
    for the first distribution calendar year, as defined below, must at least
    equal the quotient obtained by dividing the Member’s entire Account as
    of the last Valuation Date in the calendar year preceding the distribution
    calendar year, by the applicable life expectancy.

   

(e)    The minimum distribution required for the Member’s first distribution calendar year must be made on or before the Member’s required beginning date as defined in Subparagraph 8.7(b). The minimum distribution for other calendar years, including the minimum distribution for the distribution calendar year in which the Member’s required beginning date occurs, must be made on or before December 31 of that distribution calendar year.

 

(f)     If the Member dies after distribution of his or her interest has begun on or after the Member’s required beginning date, as defined in Subparagraph 8.7(b), the remaining portion of such interest will continue to be distributed at least as rapidly as under the method of distribution being used prior to the Member’s death.

 

(g)    If the Member dies before distribution of his or her interest begins, distribution of the Member’s entire interest shall be completed by December 31 of the calendar year containing the fifth anniversary of the participant’s death.

 

(h)    The life expectancy (or joint and last survivor expectancy) shall be calculated in accordance with Treasury regulations. Life expectancies shall be recalculated annually.

 

	
             
 	
            (i)
 	
            The distribution calendar year is a calendar year for which a minimum distribution is required. For distributions beginning before the Member’s death, the first distribution calendar year is the calendar year immediately preceding the calendar year which contains the Member’s required beginning date.
 

 

	
            8.8
 	
            Distribution of Benefits
 

 

The distribution of benefits under this Plan to a Member who has elected to receive such benefits shall be made not later than the 60th day after the latest of the close of the Plan Year in which (a) the Member attains age 65 or such earlier normal retirement age as may be specified in this Plan; (b) there occurs the tenth anniversary of the year in which the Member commenced membership in this Plan; or (c) the Member’s service with the Company is terminated.

 

 

	
             
 	
            - 30 -
 

 

 

 

SECTION 9

LOANS TO MEMBERS

 

	
            9.1
 	
            General
 

 

A Member, or a Former Member who is a Party-In-Interest as defined in Section 3(14) of ERISA, may borrow from his or her Account in accordance with the terms and conditions set forth in this Section 9 and such additional rules, consistent with such terms and conditions, which the Administrator may establish from time to time.

 

	
            9.2
 	
            Eligibility
 

 

To be eligible to apply for and receive a loan, the Member must be in receipt of regular Earnings. The loan shall be irrevocable upon the earlier of:

 

	
             
 	
            (a)
 	
            Endorsement of the check representing the loan proceeds, or
 

 

	
             
 	
            (b)
 	
            Expiration of ten days from issuance of such check.
 

 

	
            9.3
 	
            Loan Amount
 

 

	
             
 	
            (a)
 	
            The maximum loan shall be the lesser of one half of the Member’s Account or $50,000 (reduced by the highest balance, at any specific time, of any outstanding loan or loans during the preceding 12 months from this Plan).
 

 

	
             
 	
            (b)
 	
            A loan must be in cash, in increments of $100 and in an amount not less than $1,000.
 

 

	
             
 	
            (c)
 	
            The maximum loan amount shall be reduced to the extent necessary to prevent each installment of the loan payment, including principal and interest, when added to installments under any outstanding loan under the Plan, from exceeding 25 percent of a Member’s biweekly earnings.
 

 

	
             
 	
            (d)
 	
            The loan amount may not exceed the lesser of (i) the amount of the Member’s Contributions, Elective Deferrals and Company Contributions under the Atlantic Richfield Savings Plan II and III made prior to July 1, 1988 (including assets which originated in the Atlantic Richfield Employee Stock Ownership Plan), Matching Contributions under the Union Texas Petroleum Savings Plan for Salaried Employees, and earnings thereon at the time the loan is made, or (ii) the amount of the security, as described hereafter, for the loan.
 

 

	
             
 	
            (e)
 	
            For purposes of this Paragraph 9.3, the value of Common Stock, or any other investment alternative will be determined on the Valuation Date immediately preceding the date the loan application is received by the Administrator under rules established by the Administrator.
 

 

 

	
             
 	
            - 31 -
 

 

 

 

	
            9.4
 	
            Number of Loans
 

 

A Member may have such number of loans outstanding at any time as shall be determined by the Administrator.

 

	
            9.5
 	
            Interest Rate
 

 

A loan shall bear interest at a rate established and communicated by the Capital Accumulation Plan Administrative Committee to provide the Plan with a rate of return commensurate with prevailing interest rates charged on similar commercial loans by persons in the business of lending money.

 

	
            9.6
 	
            Security
 

 

(a)    Each loan must be evidenced by a loan agreement executed by the Member for the amount of the loan, including principal and interest,  payable to the order of the Trustee.

 

(b)   Security for the loans shall equal 50 percent of the assets in the Member’s Account as of the date of the loan request.

 

(c)    The assets which constitute security for the loan will be valued on the date of the loan agreement, or at such other time as may be determined by the Administrator.

 

	
            9.7
 	
            Funding of the Loan
 

 

(a)    The loan will be funded in accordance with procedures established by the Administrator.

 

	
             
 	
            (b)
 	
            Under procedures established by the Administrator, investment alternatives shall be sold to fund the loan.
 

 

	
            9.8
 	
            Repayment of the Loan
 

 

(a)    As determined by the Member, but subject to the restriction in Subparagraph 9.3(c), a loan may be repaid over a period of one, two, three, four or five years or, in the case of a loan used to acquire the Member’s principal residence, such longer term as determined by the Administrator and permitted under §72(p) of the Code.

 

(b)   Principal and interest shall be amortized, on a level basis, over the term of the loan.

(c)    Except as provided below, payments shall be made by means of payroll deductions, the authorization of which shall be irrevocable.

 

 

	
             
 	
            - 32 -
 

 

 

 

 

	
             
 	
            (i)
 	
            The loan may be repaid in full at any time without penalty.
 

 

(ii)    If a Member is not in receipt of regular Earnings sufficient to permit repayment of the loan, or has terminated employment, repayment shall be made by means prescribed by the Administrator.

 

Repaid principal and interest shall be credited in accordance with the Member’s election under Paragraph 6.2.

 

	
            9.9
 	
            Deemed Distribution
 

 

A distribution of the unpaid principal shall be deemed to have been made to the Member if the Member fails to make payment under Subparagraph 9.8(c) for a period of 90 days.

 

	
            9.10
 	
            Default
 

 

If the Member is not in receipt of regular Earnings sufficient to permit repayment of the loan and does not make manual repayments for a period exceeding 90 days, the loan will be deemed in default and the Administrator will realize on the security in accordance with applicable laws.

 

 

	
             
 	
            - 33 -
 

 

 

 

SECTION 10

ADMINISTRATION

CAPITAL ACCUMULATION PLAN ADMINISTRATIVE COMMITTEE

 

	
            10.1
 	
            Capital Accumulation Plan Administrative Committee
 

 

The Plan shall be administered by a Capital Accumulation Plan Administrative Committee. The Committee shall consist of the Senior Vice President, Human Resources of Atlantic Richfield Company, who shall serve as Chairperson, and not less than two other persons appointed by the Chairperson. Members of the Committee shall serve without compensation. Vacancies shall be filled by the Chairperson or the Chairperson’s delegate.

 

	
            10.2
 	
            Rules of Conduct
 

 

The Capital Accumulation Plan 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 this Plan.

 

	
            10.3
 	
            Legal, Accounting, Clerical
 

 

The Capital Accumulation Plan 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. Unless paid by the Company, all expenses of the Company, the Administrator and the Plan shall be paid by the Plan, to the extent they constitute reasonable expenses of administering the Plan. The Plan may reimburse expenses paid directly by the Company or its designee. This provision shall be deemed a part of any contract to provide for expenses of Plan administration, whether or not the signatory to such contract is, as a matter of convenience, the Company or its designee. Notwithstanding the foregoing, brokerage commissions, transfer fees and other expenses actually incurred in any sale or purchase of Company Common Stock shall be equitably added to the cost or
subtracted from the proceeds of all purchases or sales.

 

	
            10.4
 	
            Interpretation of Provisions
 

 

The Capital Accumulation Plan Administrative Committee shall have full discretion and final authority to determine eligibility for benefits and to interpret the provisions of this Plan, to decide questions arising in its administration, and to establish such other rules for its administration as may be desirable.

 

	
            10.5
 	
            Records of Administration
 

 

The Capital Accumulation Plan Administrative Committee shall keep records reflecting the administration of this Plan which shall be subject to audit by the Company. Members may examine records pertaining directly to themselves. At least annually, the Capital Accumulation Plan Administrative Committee shall have mailed to each Member a 

 

 

	
             
 	
            - 34 -
 

 

 

statement of his or her Account and such statement shall be deemed to have been accepted as correct for all purposes of this Plan unless written notice to the contrary is received by the Capital Accumulation Plan Administrative Committee or the Trustee within 30 days after the date of mailing.

 

	
            10.6
 	
            Claims for Benefits
 

 

Applications for benefits must be made in such manner as prescribed by the Administrator. The Administrator shall have full discretion and final authority to determine eligibility for benefits and to construe the terms of the Plan in acting upon an initial application for benefits or an appeal of a denial of an application for benefits. Each application shall be acted upon and approved or disapproved within 90 days following its receipt by the Administrator. In the event special circumstances require an extension of time for reviewing the initial application for benefits, the Administrator shall make a determination as soon as practicable but no later than 180 days following receipt of the application. If any application for benefits is denied, in whole or in part, the Administrator shall notify the applicant in writing of such denial and of the applicant’s right to a review by the
Administrator and shall set forth in a manner calculated to be understood by the applicant, specified reasons for such denial, specific references to pertinent Plan provisions on which the denial is based, a description of any additional material or information necessary for the applicant to perfect the application, an explanation of why such material or information is necessary, and an explanation of the Plan’s review procedure.

 

Any person, or a duly authorized representative thereof, whose application for benefits is denied in whole or in part, may appeal from such denial to the Administrator for a review of the decision by submitting to the Administrator within 60 days after receiving notice of denial, a written statement:

 

	
             
 	
            (a)
 	
            Requesting a review of the application for benefits by the Administrator;
 

 

(b)          Setting forth all of the grounds upon which the request for review is based and any facts in support thereof; and

 

(c)          Setting forth any issues or comments which the applicant deems relevant to the application.

 

The Administrator shall act upon each such appeal application within 60 days after the later of receipt of the applicant’s request for review by the Administrator or receipt of any additional materials reasonably requested by the Administrator from such applicant. In the event special circumstances require an extension of time for reviewing the appeal, the Administrator shall make a determination as soon as practicable but no later than 120 days following receipt of the appeal.

 

The Administrator shall make a full and fair review of each such application and any written materials submitted by the applicant or the Company in connection therewith and may 

 

 

	
             
 	
            - 35 -
 

 

 

require the Company or the applicant to submit within 30 days of written notice by the Administrator therefor, such additional facts, documents, or other evidence as the Administrator, in its sole discretion, deems necessary or advisable in making such a review. The Administrator shall have full discretion in making an independent determination of the applicant’s eligibility for benefits under the Plan and shall have full discretion to construe the terms of the Plan in making its review. The decision of the Administrator on any application for benefits shall be final and conclusive upon all persons.

 

If the Administrator denies an application in whole or in part, the Administrator shall give written notice of its decision to the applicant setting forth in a manner calculated to be understood by the applicant the specific reasons for such denial and specific references to the pertinent Plan provisions on which the Administrator’s decision was based.

 

	
            10.7
 	
            Liability of Committee
 

 

No Member of the Capital Accumulation Plan Administrative Committee shall be liable for any action taken in good faith or for the exercise of any power given the Capital Accumulation Plan Administrative Committee, or for the actions of other members of said Committee unless and except to the extent that such liability is imposed under law as a result of a breach by such Member of his or her fiduciary responsibilities.

 

	
            10.8
 	
            Unlocated Member
 

 

If the Committee is unable, after reasonable and diligent effort, to locate a Member, Former Member or beneficiary entitled to payment under the Plan, such payment may be forfeited and used to offset Company Contributions or to pay Plan expenses. If the Member, Former Member or beneficiary later files a claim for benefit, such benefit will be reinstated.

 

	
            10.9
 	
            Legal Representative
 

 

The Capital Accumulation Plan Administrative Committee shall act on behalf of the Plan with respect to any claim or cause of action, whether arising in the course of administrative or judicial proceedings or otherwise, and shall be responsible for initiating, pursuing and defending any such claim or cause of action involving the Plan.

 

 

	
             
 	
            - 36 -
 

 

 

 

SECTION 11

AMENDMENTS, DISCONTINUANCE, LIABILITIES

 

	
            11.1
 	
            Amendment  
 

 

The Plan may be amended, as follows, provided that the Plan, as amended, continues to be for the exclusive benefit of the Members of the Plan and that no amendment shall reduce the Account of any Member as of the date of such amendment:

 

(a)        The Board of Directors of Atlantic Richfield Company shall have the sole power to amend the Plan with respect to any change that (i) reduces or may reduce, as determined by the Plan counsel, the future Member or Company contribution to the Plan, in any manner, except to the extent legally required, as determined by the Plan counsel; (ii) increases or may increase, as certified by the Plan actuary, Company or Plan expense by an amount exceeding $10 million; and (iii) although within the amendment power of the ARCO Benefits Committee, has been determined by the Benefits Committee to be appropriate for decision by the Board of Directors.

 

 (b)        Except as provided in Subparagraph 11.1(a), the ARCO Benefits Committee shall have the power to amend the Plan under the following circumstances:

 

	
             
 	
              (i)
 	
            Any legally required change, as determined by the Plan counsel.
 

 

(ii)    Any change which is the subject of a collective bargaining agreement.

 

(iii)   Any change which is determined by the Administrator, with concurrence of the Plan counsel, to be primarily intended to improve administrative efficiency.

 

(iv)   Any change that is the subject of an agreement to which the Company is a party and which pertains to an acquisition, divestiture or similar corporate transaction.

 

(v)    Any change which is a consequence of a legally required limitation, as determined by the Plan counsel, affecting the dollar amount or type of contributions or benefits available under the Plan.

 

(vi)   Any change which is made in conjunction with a transfer of assets and/or liabilities or merger or spin-off of assets and/or liabilities among plans of the Controlled Group of companies (or former members of such Controlled Group in conjunction with the entity ceasing to be a Member of the Controlled Group) of which the Company is a member, as defined in Section 1563 of the Code.

 

 

	
             
 	
            - 37 -
 

 

 

 

	
            11.2
 	
            Termination
 

 

Atlantic Richfield Company intends to continue this Plan indefinitely but reserves the right to terminate it at any time, by action of its Board of Directors. If this Plan is terminated, or if there is a complete discontinuance of contributions under this Plan by the Company, all amounts credited to Accounts of Members shall be held for distribution as provided in Section 8.

 

	
            11.3
 	
            Liability of Company
 

 

The Company shall have no liability for payments under this Plan except to make the contributions required by Section 4. Any payments under the Plan shall be made solely from the fund held by the Trustee.

 

 

	
             
 	
            - 38 -
 

 

 

 

SECTION 12

MISCELLANEOUS

 

	
            12.1
 	
            Employment
 

 

This Plan shall not give any Member any right to be continued in the employment of the Company.

 

	
            12.2
 	
            Benefits Not Assignable
 

 

Except as provided in Paragraph 8.4, no benefit under this Plan shall be assignable or transferable in whole or in part, either directly or by operation of law or otherwise, and shall not be subject to attachment or other process.

 

	
            12.3
 	
            Discharge of Liability
 

 

If the Administrator deems any person incapable of receiving benefits to which such person is entitled under this Plan, by reason of minority, illness, infirmity, mental incompetency or other incapacity, it may direct the Trustee to make payment directly for the benefit or the account of such person or to any eligible person selected by the Administrator to disburse such payment whose receipt shall be a complete settlement therefor.

 

	
            12.4
 	
            Governing Laws
 

 

The Plan shall be governed by and construed in accordance with federal laws governing employee benefit plans qualified under the Code or with the laws of the State of Delaware to the extent not preempted by federal law.

 

	
            12.5
 	
            Limitation on Mergers
 

 

This Plan may not merge or consolidate with, or transfer any of its assets or liabilities to any other plan unless each Member in this Plan would, if said other plan were to terminate, receive a benefit immediately after the merger, consolidation or transfer which is equal to or greater than the benefit such Member would have been entitled to receive immediately before the merger, consolidation or transfer if this Plan had terminated.

 

	
            12.6
 	
            Delegation of Fiduciary or Administrative Responsibilities
 

 

Atlantic Richfield Company, by resolution of its Board of Directors or by written action of any officer generally or specifically named by such a resolution to take such an action, and the Capital Accumulation Plan Administrative Committee, by resolution of said Committee, may at any time delegate to any other named person or body, or reassume therefrom, any of their respective fiduciary responsibilities or administrative duties with respect to this Plan, including the power to delegate and reassume such responsibilities and duties by written action naming the person or body to whom the responsibility has been delegated. However, 

 

 

	
             
 	
            - 39 -
 

 

 

only the immediate delegate of Atlantic Richfield Company, the Capital Accumulation Plan Administrative Committee, or of the Treasurer of Atlantic Richfield Company, as the case may be, may, if so authorized by Atlantic Richfield Company, said Committee or said Treasurer, delegate any such responsibilities or duties.

 

	
            12.7
 	
            Named Fiduciary
 

 

The named fiduciary with respect to this Plan is Atlantic Richfield Company except that (a) as to any matter specified in this Plan as being the responsibility or function of the Capital Accumulation Plan Administrative Committee, the named fiduciary is said Committee, (b) as to any matter specified in the Plan or in the Trust Agreement as being the responsibility or function of the Trustee or the Investment Officer, the named fiduciary is the Trustee or the Investment Officer, as the case may be, and (c) as to any matter specified in the Plan as being the responsibility or function of the Treasurer of Atlantic Richfield Company, the named fiduciary is such Treasurer.

 

 

 

	
             
 	
            - 40 -
 

 

 

 

SECTION 13

ROLLOVERS

 

	
            13.1
 	
            Rollovers from Other Qualified Plans
 

 

An Employee who has had distributed to the Employee all or a portion of his or her taxable interest in a plan meeting the requirements of §401(a) of the Code, including a defined benefit retirement plan of the Company or a Subsidiary or Affiliate, (the “Other Plan”) may, in accordance with procedures approved by the Capital Accumulation Plan Administrative Committee, rollover in cash all or a portion of the taxable distribution received from the Other Plan to the Plan, provided the following conditions are met:

 

(a)    The rollover occurs on or before the 60th day after the Member receives the distribution from the Other Plan;

 

(b)   The distribution from the Other Plan qualifies as an eligible rollover distribution within the meaning of §402(c)(4) of the Code; and

 

(c)    The amount rolled over does not exceed the maximum amount which may be rolled over in accordance with §402(c)(2) of the Code.

 

	
            13.2
 	
            Transfers From Individual Retirement Accounts
 

 

An Employee who receives a distribution from an individual retirement account described in §408(a) of the Code or an individual retirement annuity described in §408(b) of the Code which constitutes the entire amount of such account or annuity (including earnings thereon), and no portion of which is attributable to any source other than a distribution from a qualified plan described in Paragraph 13.1, may, in accordance with procedures approved by the Capital Accumulation Plan Administrative Committee, rollover in cash all or a portion of such distribution to the Plan, within 60 days after receiving the distribution.

 

	
            13.3
 	
            Membership
 

 

Notwithstanding anything in the Plan to the contrary, an Employee who rolls over funds to the Plan pursuant to Paragraph 13.1 or 13.2, shall, upon such rollover, become a Member of the Plan except that the right to make Elective Deferrals, Member Contributions or receive Company Contributions will remain subject to Paragraph 2.1.

 

	
            13.4
 	
            Administration
 

 

The Administrator shall develop such procedures, including procedures for obtaining information from an Employee desiring to make such a transfer, as it deems necessary or desirable to enable it to determine that the proposed rollover will meet the requirements of this section. Upon approval by the Capital Accumulation Plan Administrative Committee, the rollover shall be deposited with the Trustee in the Employee’s Rollover Account.

 

 

	
             
 	
            - 41 -
 

 

 

 

SECTION 14

TOP HEAVY PROVISIONS

 

If the Plan is or becomes Top Heavy in any Plan Year, the provisions of this Section 14 will supersede any conflicting provisions in the Plan.

 

	
            14.1
 	
            Definitions
 

 

(a)    Key Employee means an Employee, former Employee or an Employee’s beneficiary who at any time during the determination period is:

 

(i)     An officer of the Company who has annual Compensation greater than 50 percent of the amount in effect under §415(b)(1)(A) of the Code for the Plan Year;

 

(ii)    One of the ten Employees owning (or considered as owning within the meaning of §318 of the Code) the largest interest in the Company; provided, such Employee’s annual Compensation from the Company exceeds the dollar limitation under §415(c)(1)(A) of the Code. If two or more Employees have the same ownership interest, the Employee with the greater annual Compensation from the Company for the Plan Year shall be considered to own the larger interest in the Company;

 

	
             
 	
            (iii)
 	
            A five percent owner of the Company; or
 

 

(iv)   A one percent owner of the Company who has annual Compensation from the Company of more than $150,000.

 

The determination period of the Plan is the Plan Year containing the Determination Date and the four preceding Plan Years.

 

The determination of who is a Key Employee will be made in accordance with §416(i)(1) of the Code and the regulations thereunder.

 

(b)   Top Heavy Plan: For any Plan Year after December 31, 1983, this Plan is Top Heavy if any of the following conditions exist:

 

(i)     If the Top Heavy Ratio for this Plan exceeds 60 percent and this Plan is not part of any Required Aggregation Group or Permissive Aggregation Group of plans;

 

(ii)    If this Plan is a part of a Required Aggregation Group of plans (but which is not part of a Permissive Aggregation Group) and the Top Heavy Ratio for the group of plans exceeds 60 percent; or

 

 

 

	
             
 	
            - 42 -
 

 

 

 

(iii)   If this Plan is a part of a Required Aggregation Group of plans and part of a Permissive Aggregation Group and the Top Heavy Ratio for the Permissive Aggregation Group exceeds 60 percent.

 

	
             
 	
            (c)
 	
            Top Heavy Ratio
 

 

(i)     If the Company maintains one or more defined contribution plans (including any Simplified Employee Pension Plan) and the Company has not maintained any defined benefit plan which during the five- year period ending on the Determination Date(s) has or has had accrued benefits, the Top Heavy Ratio for this plan alone or for the Required or Permissive Aggregation Group as appropriate is a fraction, the numerator of which is the sum of the account balances of all Key Employees as of the Determination Date(s) [including any part of any account balance distributed in the five-year period ending on the Determination Date(s)], and the denominator of which is the sum of all account balances [including any part of any account balance distributed in the five-year period ending on the Determination Date(s)],
both computed in accordance with §416 of the Code and the regulations thereunder. Both the numerator and denominator of the Top Heavy Ratio are adjusted to reflect any contribution not actually made as of the Determination Date, but which is required to be taken into account on that date under §416 of the Code and the regulations thereunder.

 

(ii)    If the Company maintains one or more defined contribution plans (including any Simplified Employee Pension Plan) and the Company maintains or has maintained one or more defined benefit plans which during the five-year period ending on the Determination Date(s) has or has had any accrued benefits, the Top heavy Ratio for any Required or Permissive Aggregation Group as appropriate is a fraction, the numerator of which is the sum of account balances under the aggregated defined contribution plan or plans for all Key Employees, determined in accordance with Subparagraph 14.1(c)(i), and the Present Value of accrued benefits under the aggregated defined benefit plan or plans for all Key Employees as of the Determination Date(s), and the denominator of which is the sum of the account balances under the
aggregated defined contribution plan or plans for all Members, determined in accordance with Subparagraph 14.1(c)(i), and the Present Value of accrued benefits under the defined benefit plan or plans for all Members as of the Determination Date(s), all determined in accordance with §416 of the Code and the regulations thereunder. The accrued benefits under a defined benefit plan in both the numerator and denominator of the Top Heavy Ratio are adjusted for any distribution of an accrued benefit made in the five-year period ending on the Determination Date.

 

(iii)   For purposes of Subparagraphs 14.1(c)(i) and (c)(ii), the value of account balances and the Present Value of accrued benefits will be 

 

 

	
             
 	
            - 43 -
 

 

 

determined as of the most recent Valuation Date that falls within or ends with the 12-month period ending on the Determination Date except as provided in §416 of the Code and the regulations thereunder for the first and second Plan Years of a defined benefit plan. The account balances and accrued benefits of a Member (A) who is not a Key Employee but who was a Key Employee in a prior-year, or (B) effective January 1, 1985, who has not been credited with at least one Hour of Service with a Company maintaining the Plan at any time during the five-year period ending on the Determination Date will be disregarded. The calculation of the Top Heavy Ratio, and the extent to which distributions, rollovers and transfers are taken into account will be made in accordance with §416 of the Code and the regulations thereunder. Deductible Member Contributions will not be taken into account for
purposes of computing the Top Heavy Ratio. When aggregating plans, the value of account balances and accrued benefits will be calculated with reference to the Determination Dates that fall within the same calendar year.

 

(iv)   The accrued benefit of a Member other than a Key Employee shall be determined under the method, (A) if any, that uniformly applies for accrual purposes under all defined benefit plans maintained by the Company, or (B) absent such method, as if such benefits accrued not more rapidly than the slowest accrued rate permitted under the fractional rule of §411(b)(1)(C) of the Code.

 

	
             
 	
            (c)
 	
            Permissive Aggregation Group:  The Required Aggregation Group of plans plus any other plan or plans of the Company which, when considered as a group with the Required Aggregation Group, would continue to satisfy the requirements of §401(a)(4) and §410 of the Code.
 

 

	
             
 	
            (e)
 	
            Required Aggregation Group means:
 

 

(i)     Each qualified plan of the Company in which at least one Key Employee participates or participated at any time during the determination period (regardless of whether the plan terminated); and

 

(ii)    Any other qualified plan of the Company which enables a plan described in Subparagraph 14.1(e)(i) to meet the requirements of §401(a)(4) or §410 of the Code.

 

(f)            Determination Date means for any Plan Year the last day of the preceding Plan Year. For the first Plan Year of the Plan, the last day of that year.

 

	
             
 	
            (g)
 	
            Valuation Date means December 31 of each year.
 

 

	
             
 	
            (h)
 	
            Present Value: Present Value shall be based on interest rate and the mortality
 

 

 

	
             
 	
            - 44 -
 

 

 

tables specified in the Company’s defined benefit plan.

 

(i)     Compensation means all compensation, as that term is defined for §415 purposes, but including amounts contributed by the Company pursuant to Employee Contribution Agreements which are excludable from the Employee’s income under Code §125, §402(e)(3), §402(h) and §403(b).

 

	
            14.2
 	
            Minimum Allocation
 

 

(a)    Except as otherwise provided in Subparagraphs 14.2(b), (c) and (d), the Company contribution allocated on behalf of any Member who is not a Key Employee shall not be less than the lesser of three percent of such Member’s Compensation or in the case where the Company has no defined benefit plan which designates this Plan to satisfy §401 of the Code, the largest percentage of Company Contribution, as a percentage of the first $150,000 of the Key Employee’s Compensation, allocated on behalf of any Key Employee for that year. The minimum allocation is determined without regard to any Social Security contribution. This minimum allocation shall be made even though, under other Plan provisions, the Member would not otherwise be entitled to receive an allocation, or would have received a lesser allocation for the year
because of (i) the Member’s failure to complete 1,000 Hours of Service, or (ii) the Member’s failure to make mandatory Member Contributions to the Plan, or (iii) Compensation less than a stated amount.

 

(b)   The provision in Subparagraph 14.2(a), shall not apply to any Member who was not employed by the Company on the last day of the Plan Year.

 

(c)    If Members of this Plan are covered by one or more defined benefit plans maintained by the Company or its Subsidiaries, the minimum allocation or benefit requirements applicable to Top Heavy plans shall first be met by such defined benefit plan or plans.

 

(d)   If Members of this Plan are covered by one or more defined contribution plans maintained by the Company or its Subsidiaries, and are not covered by any defined benefit plans of the Company or its Subsidiaries, the minimum allocation requirement will be met by the defined contribution plan in which the Employee is an active Member in the following order:

 

	
             
 	
            1.
 	
            Money Purchase Pension Plan
 
	
             
 	
            2.
 	
            Profit Sharing Plan, and
 	
             

	
             
 	
            3.
 	
            Stock Bonus Plan
 	
             

					

 

(e)    For purposes of satisfying the minimum allocation requirements of this Paragraph 14.2, Elective Deferrals and Matching Contributions may not be taken into account.

 

 

	
             
 	
            - 45 -
 

 

 

 

	
            14.3
 	
            The minimum accrued benefit required [to the extent required to be nonforfeitable under §416(b)] may not be suspended or forfeited under Code §411(a)(3)(B) or §411(a)(3)(D).
 

 

	
            14.4
 	
            For any Plan Year in which the Plan is Top Heavy, only the first $150,000 (or such larger amount as may be prescribed by the Secretary of Treasury or the Secretary’s delegate) of each Member’s annual Compensation will be taken into account for purposes of determining benefits under the Plan.
 

 

	
            14.5
 	
            In any Plan Year in which the Top Heavy Ratio exceeds 60 percent the denominators of the defined benefit fraction and defined contribution fraction [as previously defined in the Plan] shall be computed using 100 percent of the dollar limitation instead of 125 percent. The preceding sentence shall not apply to an Employee so long as there are no:
 

 

(a)    Company Contribution, forfeitures or voluntary nondeductible contributions allocated to such Employee, or

 

	
             
 	
            (b)
 	
            Accruals for such Employee under any qualified defined benefit plan.
 

 

	
            14.6
 	
            In determining the highest rate of contribution applicable to any Key Employee, amounts that such Key Employee elects to defer under an arrangement qualified under §401(k) of the Code will be counted for the purposes of §416 of the Code.
 

 

 

	
             
 	
            - 46 -
 

 

 

 

SECTION 15

SPECIAL PROVISION APPLICABLE TO MEMBERS

TRANSFERRING TO PHILLIPS PETROLEUM COMPANY

 

	
            15.1
 	
            Pursuant to an agreement dated as of March 15, 2000, between Atlantic Richfield Company and Phillips Petroleum Company (among others), certain Members commenced employment with Phillips or a subsidiary thereof. Such employees are hereinafter referred to as “Transferees.”
 

 

	
            15.2
 	
            The rights and benefits under the Plan of Transferees shall be governed by the Plan except as provided in this Section 15.
 

 

	
            15.3
 	
            Each Transferee shall have the right, from August 28, 2000, to October 6, 2000, to elect to transfer his or her Account from the Plan to the Phillips Thrift Plan. The transfer shall consist of cash and up to three loans held in the Transferee’s Account immediately prior to the transfer.
 

 

	
            15.4
 	
            If a Transferee does not elect a transfer, as provided hereunder, or a distribution of his or her Account by December 31, 2002, the Transferee’s Account shall not be distributable, pursuant to Section 9, except in the case of death, disability, termination of employment from Phillips Petroleum Company, or such other event as permitted by the Code or the regulations thereunder.
 

 

 

	
             
 	
            - 47 -
 

 

 

 

AMENDMENT NO. 5

TO

ATLANTIC RICHFIELD CAPITAL ACCUMULATION PLAN

____________________________

 

Pursuant to the power of amendment reserved therein, the Atlantic Richfield Capital Accumulation Plan (the “Plan”) is hereby amended effective as of the close of business on December 31, 2001, unless otherwise provided herein.

 

1.            The name of the Plan is amended to “the BP Capital Accumulation Plan”, and any and all references in the Plan, or any amendment thereto, to “the Atlantic Richfield Capital Accumulation Plan” are amended accordingly.

 

2.            Paragraph 1.3 is amended, effective as of January 1, 2001, by adding the following at the end thereof:

 

“For limitation years beginning on and after January 1, 2001, for purposes of applying the limitations described in Paragraph 4.7, amounts paid or made available during such limitation years will include elective amounts that are not includible in the gross income of an Employee by reason of § 132(f)(4) of the Code. This provision will also apply to the definition of compensation for purposes of Paragraph 1.16 and Section 14 for Plan Years beginning on and after January 1, 2001.”

 

3.            Paragraph 1.11 of the Plan is amended by adding the words “in an employment classification listed in Appendix A” after the word “Company” and before the word “excluding”.

 

	
            4.
 	
            Paragraph 2.1 of the Plan is amended in its entirety to read as follows:
 

 

	
             
 	
            “2.1
 	
            Membership.
 

 

	
             
 	
            (a)
 	
            Participant on January 1, 2002. Each Employee who was a Member with an accrued benefit in the Plan immediately before January 1, 2002, will continue as a Member as of that date, except as provided in Appendix B.
 

 

	
             
 	
            (b)
 	
            Other Eligible Employee. Each other Employee who is paid on the United States dollar payroll of the Company immediately before January 1, 2002, will remain eligible to become a Member by entering into an Employee Contribution Agreement in accordance with Section 3, except as provided in Appendix B. Each person who becomes an Employee on or after January 1, 2002, will not be eligible to become a Member at any time on or after that date.
 

 

 

	
             
 	
            - 48 -
 

 

 

 

	
             
 	
            (c)
 	
            Matching Contributions. Notwithstanding the foregoing, and except as provided in Appendix B, an Employee who is paid on the United States dollar payroll of the Company immediately before January 1, 2002, will be eligible for Matching Contributions on the earlier of (i) the completion of six months of Credited Company Service and (ii) the end of any 12-consecutive-month period (commencing on his employment date or any anniversary thereof) during which he completes at least 1,000 Hours of Service.”
 

 

5.            Subparagraph 8.5(a) is amended, effective as of January 1, 2000, by adding the following at the end thereof:

 

“A ‘hardship withdrawal’ described in Treasury regulation § 1.401(k)-1(d)(2)(ii) that may not be distributed to the Distributee without regard to hardship under § 401(k)(2)(B) of the Code will not constitute an eligible rollover distribution.”

 

6.            Subparagraph 8.7(a) is amended, effective as of January 1, 2001, by adding the following at the end thereof:

 

“With respect to distributions under the Plan made for calendar years beginning on or after January 1, 2001, the Plan will apply the minimum distribution requirements of § 401(a)(9) of the Code in accordance with the regulations under § 401(a)(9) of the Code that were proposed on January 17, 2001, notwithstanding any provision of the Plan to the contrary. This provision will continue in effect until the end of the last calendar year beginning before the effective date of final regulations under § 401(a)(9) of the Code or such other date as may be specified in guidance published by the Internal Revenue Service.”

 

7.            Section 9 of the Plan is hereby amended, effective as of October 1, 2001, by adding a new Paragraph 9.11 at the end thereof:

 

	
             
 	
            “9.11
 	
            Special Rules Concerning Loan Repayments While on Qualified
 
	
             
 	
            Military Leave
 	
             

 

Notwithstanding anything contained herein to the contrary, if a Member fails to make one or more loan repayments while he is on a qualified military leave of absence (as defined in accordance with § 414(u)(5) of the Code), no loan will be deemed to be in default solely as a result of such failure. As of the end of the qualified military leave of absence, the term of any outstanding loan will be extended by the period of the qualified military leave of absence and the outstanding loan balance will be reamortized to reflect interest accrued during such period. If such an extension would, 

 

 

	
             
 	
            - 49 -
 

 

 

after reamortizing such loan to reflect loan repayments made and interest accrued during such qualified military leave of absence, result in smaller monthly loan repayments than under the terms of the original loan, then the loan term will be extended but only for such time to ensure that monthly loan repayments following the qualified military leave of absence are at least equal to monthly loan repayments under the terms of the original loan.”

 

	
            8.
 	
            The following Appendices are added at the end of the Plan:
 

 

“APPENDIX A

COVERED EMPLOYMENT CLASSIFICATION

The following groups have been designated as employment classifications eligible for participation in the Plan:

	
            Participating Employers
 	
            Employment Classification
 
	
             
 	
             
 
	
             
 	
             
 
	
            BP Pipelines (North America) Inc.

BP West Coast Products LLC
 	
            Represented Employees at the L.A. Refinery
 
	
             
 	
             
 

 

 

APPENDIX B

TO

BP CAPITAL ACCUMULATION PLAN

 

(a)  Purpose. The purpose of this Appendix B is to set forth the special provisions (not otherwise set forth in the Plan) which apply to each Member in the Plan immediately prior to January 1, 2002, who is not a member of an employment classification listed in Appendix A, and was not, immediately prior to his termination of employment, a member of such employment classification, and alternate payees (as defined in § 414(p) of the Code) and beneficiaries of such persons.

 

(b)   Spinoff. As of the close of business on December 31, 2001, the assets and liabilities of each person referred to in the immediately preceding paragraph under the Plan will be transferred (in cash or in kind as determined by the Company) to or for the benefit of the BP Employee Savings Plan (‘BP ESP’).

 

 (c) Termination of Participation. As of the close of business on December 31, 2001, each person for whom assets and liabilities have been transferred to the BP ESP will:  (i) cease to be a Member in this Plan,

 

 

	
             
 	
            - 50 -
 

 

 

(ii) not become a Member in this Plan on January 1, 2002, (iii) have no accrued benefit under this Plan, and (iv) have no right to any benefits from this Plan.”

 

Executed this 31st day of December, 2001.

 

 

	  
	 BP
        Corporation North America Inc.

        

        ________________________________

        Don E. Packham

        Senior Vice President, Human Resources

        

 

 

 

 

	
             
 	
            - 51 -
 

 

 

 

AMENDMENT NO. 6

TO

BP CAPITAL ACCUMULATION PLAN

 

WHEREAS, pursuant to Board Resolutions adopted April 18, 2000, Atlantic Richfield Corporation designated BP Corporation North America Inc. (the “Corporation”) as the sponsor of the BP Capital Accumulation Plan (the “Plan”);  and 

 

WHEREAS, pursuant to the plan governance amendment to the Plan adopted as of such date in connection with the designation of the Corporation as the sponsor of the Plan, the Senior Vice President, Human Resources, of the Corporation, as a “Designated Officer” of the Corporation, has the authority to amend the Plan;  and

 

WHEREAS, the Plan has previously been amended and further amendment of the Plan is now considered desirable to comply with certain provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 (“EGTRRA”) and to make certain additional changes;  

 

NOW, THEREFORE, the Senior Vice President, Human Resources, of the Corporation hereby amends the Plan in the following particulars in order to reflect certain provisions of EGTRRA. This amendment is intended as good faith compliance with the requirements of EGTRRA and is to be construed in accordance with EGTRRA and guidance issued thereunder. Except as otherwise provided herein, this amendment will be effective as of the first day of the first plan year beginning after December 31, 2001, and unless otherwise extended by law, will not apply to taxable years, plan years or limitation years beginning after December 31, 2010.

 

1.             By adding the following new sentences to the end of Section 1.3 of the Plan as a part thereof:

 

“Annual Earnings or Earnings taken into account in determining allocations for any Plan Year beginning after December 31, 2001, may not exceed $200,000, as adjusted for cost-of-living increases in accordance with § 401(a)(17)(B) of the Code. Annual Earnings means Earnings during the Plan Year or such other consecutive 12-month period over which Earnings is otherwise determined under the Plan.”

 

2.             By adding the following new paragraph (d) to the end of Section 2.3 of the Plan as a part thereof:

 

	
             
 	
            “(d)
 	
            Notwithstanding anything herein to the contrary, for distributions and severances from employment occurring on or after January 1, 2002, the Member’s Account may be distributable on account of the Member’s severance from employment. However, any such distribution will be subject to the other provisions of the Plan 
 

 

 

	
             
 	
            - 52 -
 

 

 

regarding distributions, other than provisions that require a separation from service before such amounts may be distributed.

 

3.             By adding the following new language to the end of Section 3.3(a) of the Plan as a part thereof:

 

“, except to the extent permitted under Paragraph 3.3(e) and § 414(v) of the Code.”

 

4.             By adding the following new paragraph (e) to the end of Section 3.3 of the Plan as a part thereof:

 

	
             
 	
            “(e)
 	
            Notwithstanding anything in this Plan to the contrary, with respect to elective deferrals for Plan Years beginning after December 31, 2002, all Members who attain age 50 before the close of the relevant Plan Year will be eligible to make additional elective deferrals as catch-up contributions in accordance with, and subject to the limitations of, § 414(v) of the Code, the provisions of which are hereby incorporated herein by reference.  Such catch-up contributions will not be taken into account for purposes of the provisions of the Plan implementing the required limitations of §§ 402(g) and 415 of the Code, and will not be subject to the requirements of Paragraph 3.5.  The Plan will not be treated as failing to satisfy the provisions of the Plan implementing the requirements of § 401(k)(3), 410(b) or 416 of the Code by reason of the making
of such catch-up contributions.”
 

 

5.             By adding the following new sentence immediately after the title of Section 4.6 of the Plan as a part thereof:

 

“The following applies only to Plan Years beginning prior to January 1, 2002.”

 

	
            6.
 	
            By substituting the following for the first sentence of Section 4.7 of the Plan:
 

 

“In addition to other limitations set forth in the plan, and notwithstanding any other provisions of the Plan, but subject to Paragraph 3.3(e) and § 414(v) of the Code, ‘annual additions’ made to the Plan (and all other defined contribution plans required to be aggregated with the Plan under § 415 of the Code) shall not exceed the limits set forth in § 415 of the Code.”

 

7.             By adding the following new language to the end of Section 6.2(a) of the Plan as a part thereof:

 

 

 

	
             
 	
            - 53 -
 

 

 

 

“  provided, however, that investment directions may only be accepted with respect to rollover contributions made to the Plan to the extent allowed by the Administrator.”

 

8.             By deleting the words “not to exceed 20 years if a specific period is requested” where such words appear in Section 8.2(e) of the Plan.

 

9.             Effective with respect to distributions made after December 31, 2001, by substituting the following for the last sentence of Section  8.5(a) of the Plan:

 

“Notwithstanding the foregoing, any ‘hardship withdrawal’, whether described in § 401(k)(2)(B) of the Code and the regulations promulgated thereunder or otherwise, is not an eligible rollover distribution and the distributee may not elect to have any portion of such a distribution paid directly to an eligible retirement plan.  The portion of a distribution which consists of after-tax contributions which are not includible in gross income may be transferred only in a trustee-to-trustee transfer and may be transferred only to an individual retirement account or annuity described in § 408(a) or (b) of the Code, or to a qualified defined contribution plan described in § 401(a) or 403(a) of the Code that agrees to separately account for amounts so transferred, including separately accounting for the portion of such distribution which is includible in gross income
and the portion of such distribution which is not so includible.”

 

10.           Effective with respect to distributions made after December 31, 2001, by substituting the following for Section 8.5(b) of the Plan:

 

	
            “(b)
 	
            An ‘eligible retirement plan’ means an individual retirement account described in § 408(a) of the Code, an individual retirement annuity described in § 408(b) of the Code, an annuity plan described in § 403(a) of the Code, an eligible deferred compensation plan described in § 457(b) of the Code which is maintained by an eligible employer described in § 457(e)(1)(A) of the Code (but only if such employer agrees to separately account for amounts transferred into such plan from the Plan), an annuity contract described in § 403(b) of the Code, or a qualified trust described in § 401(a) of the Code which accepts a distributee’s eligible rollover distribution. This definition of ‘eligible retirement plan’ will also apply in the case of a distribution to a surviving spouse, or to a spouse or former spouse who
is the alternate payee under a qualified domestic relations order as defined in § 414(p) of the Code.”
 

 

11.           By adding the following new Section 8.9 to the end of Section 8 of the Plan as a part thereof:

 

“8.9.  Minimum Distribution Requirements.

 

	
             
 	
            (a)
 	
            General Rules.
 

 

 

 

	
             
 	
            - 54 -
 

 

 

 

 (1)     Effective Date. The provisions of this Paragraph 8.9 will apply for purposes of determining required minimum distributions for calendar years beginning with the 2003 calendar year.

 

 (2)     Coordination with Minimum Distribution Requirements Previously in Effect. Required minimum distributions for 2002 under this Paragraph 8.9 will be determined as follows. If the total amount of 2002 required minimum distributions under the Plan made to the distributee prior to the effective date of this Paragraph 8.9 equals or exceeds the required minimum distributions determined under this Paragraph 8.9, then no additional distributions will be required to be made for 2002 on or after such date to the distributee. If the total amount of 2002 required minimum distributions under the Plan made to the distributee prior to the effective date of this Paragraph 8.9 is less than the amount determined under this Paragraph 8.9, then required minimum distributions for 2002 on and after such date will be

determined so that the total amount of required minimum distributions for 2002 made to the distributee will be the amount determined under this Paragraph 8.9.  This Paragraph 8.9(a)(2) does not apply.

 

 (3)     Precedence.  The requirements of this Paragraph 8.9 will take precedence over any inconsistent provisions of the Plan.

 

 (4)     Requirements of Treasury Regulations Incorporated.  All distributions required under this Paragraph 8.9 will be determined and made in accordance with the Treasury regulations under § 401(a)(9) of the Code.

 

 (5)     TEFRA Section 242(b)(2) Elections.  Notwithstanding the other provisions of this Paragraph 8.9, distributions may be made under a designation made before January 1, 1984, in accordance with Section 242(b)(2) of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the provisions of the plan that relate to Section 242(b)(2) of TEFRA.

 

	
             
 	
            (b)
 	
            Time and Manner of Distribution.
 

 

 (1)     Required Beginning Date.  The Member’s entire interest will be distributed, or begin to be distributed, to the Member no later than the Member’s required beginning date.

 

 (2)     Death of Member Before Distributions Begin.  If the Member dies before distributions begin, the Member’s entire interest will be distributed, or begin to be distributed, no later than as follows:

 

 

 

	
             
 	
            - 55 -
 

 

 

 

 (A)    

If the Member’s surviving spouse is the Member’s sole designated
beneficiary, then distributions to the surviving spouse will begin by December
31 of the calendar year immediately following the calendar year in which the
Member died, or by December 31 of the calendar year in which the Member would
have attained age 70 1/2, if later.

 

 (B)    

If the Member’s surviving spouse is not the Member’s sole designated
beneficiary, the Member’s entire interest will be distributed to the
designated beneficiary by December 31 of the calendar year containing the fifth
anniversary of the Member’s death. If the Member’s surviving spouse is
the Member’s sole designated beneficiary and the surviving spouse dies
after the Member but before distributions to either the Member or the surviving
spouse begin, this provision will apply as if the surviving spouse were the
Member.

 

 (C)    If there is no designated beneficiary as of September 30 of the year following the year of the Member’s death, the Member’s entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Member’s death.

 

 (D)    If the Member’s surviving spouse is the Member’s sole designated beneficiary and the surviving spouse dies after the Member but before distributions to the surviving spouse begin, this Paragraph 8.9(b)(2), other than Paragraph 8.9(b)(2)(A), will apply as if the surviving spouse were the Member.

 

For purposes of this Paragraph 8.9(b)(2) and Paragraph 8.9(d) below, unless Paragraph 8.9(b)(2)(D) applies, distributions are considered to begin on the Member’s required beginning date. If Paragraph 8.9(b)(2)(D) applies, distributions are considered to begin on the date distributions are required to begin to the surviving spouse under Paragraph 8.9(b)(2)(A). If distributions under an annuity purchased from an insurance company irrevocably commence to the Member before the Member’s required beginning date (or to the Member’s surviving spouse before the date distributions are required to begin to the surviving spouse under Paragraph 8.9(b)(2)(A), the date distributions are considered to begin is the date distributions actually commence.

 

 (3)    Forms of
Distribution. Unless the Member’s interest is
distributed in the form of an annuity purchased from an insurance company or in
a single sum on or before the required beginning date, as of the first
distribution calendar year distributions will be made in accordance with
Sections 18.18(c) and (d). If the Member’s interest is distributed in the
form of an annuity purchased from an insurance 

 

 

	
             
 	
            - 56 -
 

 

 

company, distributions thereunder will be made in accordance with the requirements of § 401(a)(9) of the Code and the Treasury regulations.

 

 (c)     Required Minimum Distributions During Member’s Lifetime.

 

 (1)     Amount of Required Minimum Distribution For Each Distribution Calendar Year.  During the Member’s lifetime, the minimum amount that will be distributed for each distribution calendar year is the lesser of:

 

 (A)     the quotient obtained by dividing the Member’s account balance by the distribution period in the Uniform Lifetime Table set forth in § 1.401(a)(9)-9 of the Treasury regulations, using the Member’s age as of the Member’s birthday in the distribution calendar year;  or

 

 (B)     if the Member’s sole designated beneficiary for the distribution calendar year is the Member’s spouse, the quotient obtained by dividing the Member’s account balance by the number in the Joint and Last Survivor Table set forth in § 1.401(a)(9)-9 of the Treasury regulations, using the Member’s and spouse’s attained ages as of the Member’s and spouse’s birthdays in the distribution calendar year.

 

 (2)     Lifetime Required Minimum Distributions Continue Through Year of Member’s Death.  Required minimum distributions will be determined under this Paragraph 8.9(c) beginning with the first distribution calendar year and up to and including the distribution calendar year that includes the Member’s date of death.

 

	
             
 	
            (d)
 	
            Required Minimum Distributions After Member’s Death.
 

 

	
             
 	
            (1)
 	
            Death On or After Date Distributions Begin.
 

 

 (A)     Member Survived by Designated beneficiary. If the Member dies on or after the date distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Member’s death is the quotient obtained by dividing the Member’s account balance by the longer of the remaining life expectancy of the Member or the remaining life expectancy of the Member’s designated beneficiary, determined as follows:

 

 (i)     The Member’s remaining life expectancy is calculated using the age of the Member in the year of death, reduced by one for each subsequent year.

 

 

	
             
 	
            - 57 -
 

 

 

 

 (ii)     If the Member’s surviving spouse is the Member’s sole designated beneficiary, the remaining life expectancy of the surviving spouse is calculated for each distribution calendar year after the year of the Member’s death using the surviving spouse’s age as of the spouse’s birthday in that year. For distribution calendar years after the year of the surviving spouse’s death, the remaining life expectancy of the surviving spouse is calculated using the age of the surviving spouse as of the spouse’s birthday in the calendar year of the spouse’s death, reduced by one for each subsequent calendar year.

 

 (iii)     If the Member’s surviving spouse is not the Member’s sole designated beneficiary, the designated beneficiary’s remaining life expectancy is calculated using the age of the beneficiary in the year following the year of the Member’s death, reduced by one for each subsequent year.

 

 (B)     No Designated beneficiary. If the Member dies on or after the date distributions begin and there is no designated beneficiary as of September 30 of the year after the year of the Member’s death, the minimum amount that will be distributed for each distribution calendar year after the year of the Member’s death is the quotient obtained by dividing the Member’s account balance by the Member’s remaining life expectancy calculated using the age of the Member in the year of death, reduced by one for each subsequent year.

 

	
             
 	
            (2)
 	
            Death Before Date Distributions Begin.
 

 

 (A)     Member Survived by Designated beneficiary. To the extent Section 8.9(b)(2)(B) does not contain the ‘five-year rule,’ if the Member dies before the date distributions begin and there is a designated beneficiary, the minimum amount that will be distributed for each distribution calendar year after the year of the Member’s death is the quotient obtained by dividing the Member’s account balance by the remaining life expectancy of the Member’s designated beneficiary, determined as provided in Paragraph 8.9(d)(1).

 

 (B)     No Designated beneficiary. If the Member dies before the date distributions begin and there is no designated beneficiary as of September 30 of the year following the year of the Member’s death, distribution of the Member’s entire interest will be completed by December 31 of the calendar year containing the fifth anniversary of the Member’s death.

 

 (C)     Death of Surviving spouse Before Distributions to Surviving spouse Are Required to Begin. If the Member 

 

 

	
             
 	
            - 58 -
 

 

 

dies before the date distributions begin, the Member’s surviving spouse is the Member’s sole designated beneficiary, and the surviving spouse dies before distributions are required to begin to the surviving spouse under Paragraph 8.9(b)(2)(A), this Paragraph 8.9(d)(2) will apply as if the surviving spouse were the Member.

 

	
             
 	
            (e)
 	
            Definitions.
 

 

 (1)     Designated beneficiary. The individual who is designated as the beneficiary under the Plan and
is the designated beneficiary under § 401(a)(9) of the Code and §
1.401(a)(9)-1, Q&A-4, of the Treasury Regulations.

 

 (2)     Distribution calendar year. A calendar year for which a minimum distribution is required. For
distributions beginning before the Member’s death, the first distribution
calendar year is the calendar year immediately preceding the calendar year which
contains the Member’s required beginning date. For distributions beginning
after the Member’s death, the first distribution calendar year is the
calendar year in which distributions are required to begin under Paragraph
8.9(b)(2). The required minimum distribution for the Member’s first
distribution calendar year will be made on or before the Member’s required
beginning date. The required minimum distribution for other distribution
calendar years, including the required minimum distribution for the distribution
calendar year in which the Member’s required beginning date occurs, will be
made on or before December 31 of that distribution calendar year.

 

 (3)     Life expectancy.
Life expectancy as computed by use of the Single Life Table in §
1.401(a)(9)-9 of the Treasury Regulations.

 

 (4)     Member’s account
balance. The account balance as of the last valuation
date in the calendar year immediately preceding the distribution calendar year
(valuation calendar year) increased by the amount of any contributions made and
allocated or forfeitures allocated to the account balance as of dates in the
valuation calendar year after the valuation date and decreased by distributions
made in the valuation calendar year after the valuation date. The account
balance for the valuation calendar year includes any amounts rolled over or
transferred to the Plan either in the valuation calendar year or in the
distribution calendar year if distributed or transferred in the valuation
calendar year.

 

 (5)     Required beginning date. The date specified in Paragraph 8.7(b).”

 

 

 

	
             
 	
            - 59 -
 

 

 

 

12.   By substituting the following for Section 10.6 of the Plan (as previously amended by the plan governance amendment adopted April 18, 2000):

 

	
             
 	
            “10.6
 	
            Claims Procedure for Claims Made On and After January 1, 2002
 

 

 (a)     Definitions. For purposes of this Paragraph 10.6, the following words or phrases in quotes when capitalized will have the meaning set forth below:

 

 (1)      “Adverse Benefit Determination” means
a denial, reduction or the termination of, or a failure to provide or make
payment (in whole or in part) with respect to a Claim for a benefit, including
any such denial, reduction, termination, or failure to provide or make payment
that is based on a determination of a Member’s or beneficiary’s
eligibility to participate in the Plan.

 

 (2)      “Claim” means a request for a benefit
or eligibility to participate in the Plan, made by a Claimant in accordance with
the Plan’s procedures for filing Claims, as described in this Paragraph
10.6. For this purpose, an inquiry or request for reconsideration made under the
Plan’s established administrative procedures will not constitute a
Claim.

 

 (3)      
“Claimant” is defined in Paragraph 10.6(b)(2).

 

 (4)      “Disability Claim” means a Claim for
a disability-based benefit under the Plan.

 

 (5)      “Notice” or “Notification”
means the delivery or furnishing of information to an individual in a manner
that satisfies applicable Department of Labor regulations with respect to
material required to be furnished or made available to an individual.

 

 (6)      “Relevant Documents” include
documents, records or other information with respect to a Claim that:

 

 (A)     were relied upon by the Administrator in making the
benefit determination;

 

 (B)     were submitted to, considered by or generated for,
the Administrator in the course of making the benefit determination, without
regard to whether such documents, records or other information were relied upon
by the Administrator in making the benefit determination;

 

 (C)     demonstrate compliance with administrative processes
and safeguards required in making the benefit determination; or

 

 

	
             
 	
            - 60 -
 

 

 

 

 (D)     constitute a statement of policy or guidance with
respect to the Plan concerning the denied benefit for the Member’s
circumstances, without regard to whether such advice was relied upon by the
Administrator in making the benefit determination.

 

 (b)          Procedure for Filing a Claim. In order for a communication from a Claimant to constitute a valid
Claim, it must satisfy the following paragraphs (1) and (2) of this paragraph
(b).

 

 (1)     Any Claim submitted by a Claimant must be in
writing on the appropriate Claim form (or in such other manner acceptable to the
Administrator) and delivered, along with any supporting comments, documents,
records and other information, to the Administrator in person, or by mail
postage paid, to the address for the Administrator provided in the Summary Plan
Description.

 

 (2)     Claims and appeals of denied Claims may be
pursued by a Member or an authorized representative of the Member (each of whom
will be referred to in this section as a “Claimant”). However, the
Administrator may establish reasonable procedures for determining whether an
individual has been authorized to act on behalf of a Member.

 

 (c)          Initial Claim Review. The initial Claim review will be conducted by the Administrator, with
or without the presence of the Claimant, as determined by the Administrator in
its discretion. The Administrator will consider the applicable terms and
provisions of the Plan and amendments to the Plan, information and evidence that
is presented by the Claimant and any other information it deems relevant. In
reviewing the Claim, the Administrator will also consider and be consistent with
prior determinations of Claims from other Claimants who were similarly situated
and which have been processed through the Plan’s claims and appeals
procedures within the past 24 months.

 

	
             
 	
            (d)
 	
             Initial Benefit Determination.
 

 

 (1)     The Administrator will notify the Claimant of
the Administrator’s determination within a reasonable period of time, but
in any event (except as described in paragraph (2) below) within 90 days after
receipt of the Claim by the Administrator.

 

 (2)     The Administrator may extend the period for
making the benefit determination by 90 days if it determines that such an
extension is necessary due to matters beyond the control of the Plan and if it
notifies the Claimant, prior to the expiration of the initial 90 day period,

 

 

	
             
 	
            - 61 -
 

 

 

of circumstances requiring the extension of time and the date by which the Administrator expects to render a decision.

 

	
             
 	
            (e)
 	
            Disability Claim.
 

 

 (1)     In the case of a Disability Claim, the
Administrator will notify the Claimant of the Plan’s determination within a
reasonable period of time, but in any event (except as described in paragraph
(2) below) within 45 days after receipt of the Claim by the
Administrator.

 

 (2)     The Administrator may extend the period for
making the benefit determination by 30 days if it determines that such an
extension is necessary due to matters beyond the control of the Plan and if it
notifies the Claimant, prior to the expiration of the initial 45-day period, of
circumstances requiring the extension of time and the date by which the
Administrator expects to render a decision.

 

 (3)     The Administrator may extend the period for
making the benefit determination by 30 days if it determines that such an
extension is due to matters beyond the control of the Plan and if it notifies
the Claimant, prior to the expiration of the first 30-day extension period, of
the circumstances requiring the extension of time and the date by which the
Administrator expects to render a decision.

 

 (4)     If such an extension is necessary due to a
failure of the Claimant to submit the information necessary to decide the Claim,
the Notice of extension will specifically describe the required information, the
Claimant will be afforded at least 45 days from receipt of the Notice within
which to provide the specified information, and the period in which the
Administrator is required to make a decision will be tolled from the date on
which the notification is sent to the Claimant until the Claimant adequately
responds to the request for additional information.

 

 (f)          Manner and Content of Notification of
Adverse Benefit Determination.

 

 (1)     The Administrator will provide a Claimant with
written or electronic Notice of any Adverse Benefit Determination, in accordance
with applicable Department of Labor regulations.

 

 (2)     The Notification will set forth in a manner
calculated to be understood by the Claimant:

 

 (A)     The specific reason or reasons for the Adverse
Benefit Determination;

 

 

 

	
             
 	
            - 62 -
 

 

 

 

 (B)     Reference to the specific provision(s) of the Plan on
which the determination is based;

 

 (C)     Description of any additional material or information
necessary for the Claimant to perfect the Claim and an explanation of why such
material or information is necessary;

 

 (D)     In the case of a Disability Claim, if an internal
rule, guideline, protocol or other similar criterion was relied upon in making
the Adverse Benefit Determination, the Notice will either (a) set forth such
specific rule, guideline, protocol or other similar criterion of the Plan that
was relied upon; or (b) provide a statement that such rule, guideline, protocol
or similar criterion was relied upon, and that a copy will be provided free of
charge to the Claimant upon request;

 

 (E)     A description of the Plan’s review procedures
and the time limits applicable to such procedures, including a statement of the
Claimant’s right to bring a civil action under Section 502(a) of ERISA
following an Adverse Benefit Determination on review.

 

 (g)     Procedure for Filing a Review of an Adverse
Benefit Determination.

 

 (1)     Any appeal of an Adverse Benefit Determination
by a Claimant must be brought to the Administrator within 60 days after receipt
of the Notice of the Adverse Benefit Determination. Notwithstanding the
foregoing, an appeal of a Disability Claim must be brought within 180 days after
receipt of the Notice. Failure to appeal within such 60-day or 180-day period
will be deemed to be a failure to exhaust all administrative remedies under the
Plan. The appeal must be in writing utilizing the appropriate form provided by
the Administrator (or in such other manner acceptable to the Administrator);
provided, however, that if the Administrator does not provide the appropriate
form, no particular form is required to be utilized by the Member. The appeal
must be filed with the Administrator at the address listed in the Summary Plan
Description.

 

 (2)     A Claimant will have the opportunity to submit
written comments, documents, records and other information relating to the
Claim.

 

	
             
 	
            (h)
 	
            Review Procedures for Adverse Benefit Determinations.
 

 

 (1)     The Administrator will provide a review that
takes into account all comments, documents, records and other information

 

 

	
             
 	
            - 63 -
 

 

 

submitted by the Claimant without regard to whether such information was submitted or considered in the initial benefit determination.

 

 (2)         The Claimant will be provided, upon request and
free of charge, reasonable access to and copies of all Relevant
Documents.

 

 (3)         The review procedure may not require more than
two levels of appeals of an Adverse Benefit Determination.

 

	
             
 	
             (4)
 	
            Special rules for Disability Claims:
 

 

 (A)     the review of the Adverse Benefit Determination will
not afford deference to the initial determination made by the
Administrator.

 

 (B)     the Administrator must designate an individual to
conduct the review process who is neither the individual who made the Adverse
Benefit Determination that is the subject of the appeal nor the subordinate of
such individual.

 

 (C)     in deciding an appeal of any Adverse Benefit
Determination that is based in whole or in part on a medical judgment, the
Administrator will consult with a Health Care Professional who has appropriate
training and experience in the field of medicine involved in the medical
judgment. The Health Care Professional will be an individual who was neither
consulted in connection with the Adverse Benefit Determination that is the
subject of the appeal, nor the subordinate of any such individual.

 

 (D)     the Administrator will identify any medical or
vocational experts whose advice was obtained on behalf of the Plan in connection
with a Claimant’s Adverse Benefit Determination, without regard as to
whether the advice was relied upon in making the benefit
determination.

 

 (i)       Timing and Notification of Benefit
Determination on Review. The Administrator will notify
the Claimant within a reasonable period of time, but in any event within 60 days
after the Claimant’s request for review, unless the Administrator
determines that special circumstances require an extension of time for
processing the review of the Adverse Benefit Determination. If the Administrator
determines that an extension is required, written Notice will be furnished to
the Claimant prior to the end of the initial 60-day period indicating the
special circumstances requiring an extension of time and the date by which the
Administrator expects to render the determination on review, which in any event
will be within 60 days from the end of the initial 60-day period. If 

 

 

	
             
 	
            - 64 -
 

 

 

such an extension is necessary due to a failure of the Claimant to submit the information necessary to decide the Claim, the period in which the Administrator is required to make a decision will be tolled from the date on which the notification is sent to the Claimant until the Claimant adequately responds to the request for additional information.  Notwithstanding the foregoing, in the case of a Disability Claim, the Administrator will notify the Claimant within a reasonable period of time, but in any event within 45 days after the Claimant’s request for review, unless the Administrator determines that special circumstances require an extension of time for processing the review of the Adverse Benefit Determination. If the Administrator determines that an extension is required, written Notice will be furnished to the Claimant prior to the end of the initial 45-day period indicating
the special circumstances requiring an extension of time and the date by which the Plan expects to render the determination on review, which in any event will be within 45 days from the end of the initial 45-day period.  If such an extension is necessary due to a failure of the Claimant to submit the information necessary to decide the Claim, the period in which the Administrator is required to make a decision will be tolled from the date on which the notification is sent to the Claimant until the Claimant adequately responds to the request for additional information.

 

 (j)          Manner and Content of Notification of
Benefit Determination on Review.

 

 (1)      The Administrator will provide a written or
electronic Notice of the Plan’s benefit determination on review, in
accordance with applicable Department of Labor regulations.

 

	
             
 	
            (2)
 	
            The Notification will set forth:
 

 

 (A)     The specific reason or reasons for the Adverse
Benefit Determination;

 

 (B)     Reference to the specific provision(s) of the Plan on
which the determination is based;

 

 (C)     A statement that the Claimant is entitled to receive,
upon request and free of charge, reasonable access to and copies of all Relevant
Documents; and

 

 (D)     A statement of the Claimant’s right to bring a
civil action under Section 502(a) of ERISA following an Adverse Benefit
Determination on review.

 

	
             
 	
            (k)
 	
            Collectively Bargained Benefits.
 

 

 

 

	
             
 	
            - 65 -
 

 

 

 

 (1)     Where benefits are provided pursuant to a
collective bargaining agreement and such collective bargaining agreement
maintains or incorporates by specific reference: (i) provisions concerning the
filing of a Claim for a benefit and the initial disposition of a Claim; and (ii)
a grievance and arbitration procedure to which Adverse Benefit Determinations
are subject, then Paragraph 10.6(c) through and including Paragraph 10.6(i) will
not apply to such Claim.

 

 (2)     Where benefits are provided pursuant to a
collective bargaining agreement and such collective bargaining agreement
maintains or incorporates by specific reference a grievance and arbitration
procedure to which Adverse Benefit Determinations are subject, then Paragraph
10.6(f) through and including Paragraph 10.6(i) will not apply to such
Claim.

 

 (l)     Statute of Limitations. No cause of action may be brought by a Claimant who has received an
Adverse Benefit Determination later than two years following the date of such
Adverse Benefit Determination.”

 

	
            14.
 	
            By substituting the following for Section 14.1(a) of the Plan:
 

 

	
             
 	
            “(a)
 	
            Key Employee means any Employee or former Employee (including any deceased Employee) who at any time during the Plan Year that includes the Determination Date was an officer of the Employer having annual compensation greater than $130,000 (as adjusted under § 416(i)(1) of the Code for Plan Years beginning after December 31, 2002), a 5-percent owner of the Employer, or a 1-percent owner of the Employer having annual compensation of more than $150,000. For this purpose, annual compensation means compensation within the meaning of § 415(c)(3) of the Code. The determination of who is a Key Employee will be made in accordance with § 416(i)(1) of the Code and the applicable regulations and other guidance of general applicability issued thereunder.”
 

 

15.            By substituting the following for the second and third sentences of Section 14.1(c)(iii) of the Plan:

 

“The present values of accrued benefits and the amounts of account balances of an employee as of the determination date will be increased by the distributions made with respect to the employee under the Plan and any Aggregation Group Plan during the 1-year period ending on the Determination Date. The preceding sentence will also apply to distributions under a terminated plan which, had it not been terminated, 

 

 

	
             
 	
            - 66 -
 

 

 

would have been aggregated with the Plan under § 416(g)(2)(A)(i) of the Code. In the case of a distribution made for a reason other than severance from employment, death, or disability, this provision will be applied by substituting “5-year period” for “1-year period.  The accrued benefits and accounts of any individual who has not performed services for the Employer during the 1-year period ending on the determination date will not be taken into account.”

 

16.           By adding the following new sentences to the end of Section 14.2(e) of the Plan as a part thereof:

 

“Notwithstanding the foregoing, for Plan Years beginning on or after January 1, 2002, Employer matching contributions will be taken into account for purposes of satisfying the minimum contribution requirements of § 416(c)(2) of the Code and the Plan. The preceding sentence will apply with respect to matching contributions under the Plan or, if the Plan provides that the minimum contribution requirement will be met in another plan, such other plan. Employer matching contributions that are used to satisfy the minimum contribution requirements will be treated as matching contributions for purposes of the actual contribution percentage test and other requirements of § 401(m) of the Code.”

 

 

	
             
 	
            In all other respects, the Plan will remain in full force and effect.
 

 

 

*     *     *    
 *     *   

 

 

I, Donald Packham, Senior Vice President, Human Resources, of the Corporation, hereby approve and adopt the foregoing amendment to the Plan.

 

Dated this 31st day of December, 2002.

 

 

	  
	 ____________________________________

	  
	 Senior
        Vice President, Human Resources

        BP Corporation North America Inc. 
	  

						

 

 

 

	
             
 	
            - 67 -
 

 

 

 

 AMENDMENT NO. 7
TO
BP CAPITAL ACCUMULATION PLAN

 

WHEREAS,  BP Corporation North America Inc. (the “Corporation”) maintains the BP Capital Accumulation Plan (“the Plan”);

WHEREAS,  the Plan has previously been amended and further amendment of the Plan is now considered desirable; and

WHEREAS,  pursuant to the power delegated to a Designated Officer under the Plan, the Senior Vice President, Human Resources, as a Designated Officer of the Corporation, has the authority to amend the Plan; 

NOW, THEREFORE,  the Senior Vice President, Human Resources of the Corporation hereby amends the Plan, effective April 1, 2003, in the following particulars:

 

1. By adding the following new Section 4.10 to the end of Section 4 of the Plan as a part thereof:

 

	
             
 	
            “4.10  
 	
            Matching Contribution on Return from Qualified Military Leave.
 

If an Employee: (a) was absent from employment for qualified military service with the armed forces of the United States, (b) returns to employment after March 31, 2003 and within the period required by the Uniform Services Employment and Reemployment Rights Act of 1994, or any successor statute, and (c) was a Participant at the commencement of the qualified military leave, then following his return to employment with the Company, the Company will contribute to the Trust an amount determined under this Section 4.10 as a contribution to the Participant’s 

 

 

	
             
 	
            - 68 -
 

 

 

Company Contribution Account as soon as administratively practicable following the Employee’s return from qualified military leave. The amount of the contribution will equal the maximum Company Contribution the Employee would have been entitled to under the Plan had the Employee not been on qualified military leave and been contributing to the Plan during the leave period at a rate which would have entitled the Employee to the highest possible Company Contribution, reduced by the Company Contribution actually made on behalf of the Employee during the leave period; provided, however, that no contribution made with respect to a year on behalf of a Participant may exceed the limitations under Section 415 of the Code applicable to the year to which the missed Company Contribution relates. The missed earnings to be considered for purposes of calculating the contribution
under this Section 4.10 will be the Employee’s earnings as that term is defined under Section 414(u)(7) of the Code, reduced by the Earnings actually paid to the Employee during the leave period. The contribution under this Section will be in satisfaction of any amount otherwise required to be contributed by the Company pursuant to Section 414(u) of the Code.”

 

2. By substituting the following for Section 9.2.of the Plan:  

 

	
             
 	
            “9.2  
 	
            Eligibility
 

A Participant who is an Employee will be eligible for a loan only to the extent: (a) the Participant will not be in default on the loan under Paragraph 9.9 immediately after the loan is made; and (b) in the case of a Participant who has previously defaulted on a loan (other than a Participant whose outstanding loan balance was repaid in full in 

 

 

	
             
 	
            - 69 -
 

 

 

accordance with Section 9.10(c) or who received the defaulted loan in an actual (not deemed) distribution), the defaulted loan (plus interest accrued from the date of the default) has been repaid in full.” 

 

3. By substituting the following for for subparagraph (i) of Section 9.8(c) of the Plan:

 

	
             
 	
            “(i)  
 	
            The loan may be repaid in full or in part at any time without
 
	
             
 	
            penalty.”
 	
             

					

 

4. By substituting the following for Sections 9.9 and 9.10 of the Plan:

 

	
             
  	
            “9.9  
 	
            Default.
 

A Participant will default on a loan if any of the following events occurs:

	
             
  	
            (a)
 	
            the Participant’s death; 
 

	
             
  	
            (b)
 	
            
the Participant’s failure to make the equivalent of one month’s
payment of principal and interest on the loan;
 

	
             
  	
            (c)
 	
            
the Participant misses less than one month’s repayment but the loan’s
term cannot be extended to recover these repayments without extending its term
beyond 5 years;
 

	
             
  	
            (d)
 	
            the Participant’s failure to perform or observe any covenant, duty, or agreement under the promissory note evidencing the loan;
 

	
             
  	
            (e)
 	
            receipt by the Plan of an opinion of counsel to the effect that (A) the Plan will, or could, lose its status as a tax-qualified Plan unless the loan is repaid or (B) the loan violates, or might violate, any provision of ERISA;
 

	
             
  	
            (f)
 	
            any portion of the Participant’s Account that secures the loan becomes payable to the Participant, his surviving Spouse or Beneficiary, an Alternate Payee, or any other person; or
 

	
             
  	
            (g)
 	
            the termination of the Plan.
 

 

	
             
  	
            9.10
 	
            Foreclosure.
 

	
             
  	
            (a)
 	
            
If a default on a loan occurs, the Participant, the Participant’s estate,
or any other person will have 90 days from the date of the default to pay the
entire outstanding balance of the loan to the Plan or may elect to make one
partial payment to the Plan to reduce the outstanding balance of the loan. Upon
the death of the Participant, payment may only be made by certified check or
such other means acceptable to the Administrator.
 

	
             
  	
            (b)
 	
            
If full repayment does not happen under Section 9.10(a), the Participant’s
nonforfeitable interest in his Account securing the loan will be applied
immediately, to the extent lawful, when and to the extent the Participant’s
Account is then available for withdrawal in accordance with the applicable
provisions of the Plan, to pay the entire outstanding balance of the loan
(together with accrued and unpaid interest).

 

 

	
             
 	
            - 70 -
 

 

 

 

	
             
  	
            (c)
 	
            
Notwithstanding the foregoing, no portion of the Participant’s Elective
Deferral Account, or other Accounts, which are not available to be withdrawn,
will be withdrawn or applied to pay an outstanding loan before the date on which
it is otherwise withdrawable under the Plan. In the event of a default and
failure to repay under Section 9.10(a), the Administrator will direct the
Trustee to report the unpaid balance of the loan (less amounts withdrawn under
Section 9.10(b)) as a taxable distribution. To the extent that the
Participant’s nonforfeitable interest in his Account securing the loan has
not been applied under Section 9.10(b) to pay the entire outstanding
balance of the loan (together with accrued and unpaid interest), (i) the loan
may be repaid, (ii) the loan will be considered outstanding for purposes of
Section 9.3 and (iii) any repayment will be allocated and posted to the
Participant’s Member Contribution Account and treated as a Member
Contribution (other than for purposes of Section 4).

	
             
  	
            (d)
 	
            
Any failure by the Administrator to enforce the Plan’s rights with respect
to a default on a loan will not constitute a waiver of such rights either with
respect to that default or any other default.”

 

 

In all other respects, the Plan remains in full force and effect. 

 

 

*    *    *    *    *

 

I, Donald Packham, Senior Vice President, Human Resources, of the Corporation, hereby approve and adopt the foregoing amendment to the Plan.

 

 

 

	  
	 Dated
        this 17th day of April 2003.

        

        ________________________________

	  
	 Senior
        Vice President, Human Resources

        BP Corporation North America Inc. 
	  

						

 

 

 

	
             
 	
            - 71 -
 

 

 

 

AMENDMENT NO. 8

TO

BP CAPITAL ACCUMULATION PLAN

 

WHEREAS, BP Corporation North America Inc. (the “Corporation”) maintains the BP Capital Accumulation Plan (the “Plan”); and

WHEREAS, the Plan has previously been amended and further amendment of the Plan now is considered desirable;  and

WHEREAS, pursuant to the power delegated to a Designated Officer under the Plan, the Senior Vice President, Human Resources, as a Designated officer of the Corporation, has the authority to amend the Plan; and

WHEREAS, in all other respects, the Plan, as amended, will continue in full force and effect.

NOW, THEREFORE, the Senior Vice President, Human Resources, of the Corporation hereby amends the Plan, in the following particulars:

 

1. Effective April 1, 2003 by substituting the following for the first sentence of Section 4.10 of the Plan:

 

“If an Employee: (i) was absent from employment for qualified military service with the armed forces of the United States on or after January 1, 2001, (ii) returns to employment with the Employer within the period required by the Uniformed Services Employment and Reemployment Act of 1994, or any successor statute, and (iii) was eligible to participate in the Plan at the commencement of the qualified military leave, then following his return to employment with the Employer, the Employer will contribute to the Trust an amount determined under this Section 4.10 as a contribution to the Participant’s Match Account and invested in the Company Stock  Fund as soon as administratively practicable following the Employee’s return from qualified military leave.”

 

 

	
             
 	
            - 72 -
 

 

 

 

2. Effective December 31, 2003, by adding the following language to the end of Section 6.2 of the Plan as part thereof:

 

“In addition, the Plan Administrator reserves the right to take any and all actions he determines to be appropriate to minimize plan disruptions, and to protect the interest of all Plan Participants, including disruptions caused by excessive Participant trading or for any other reason. Such actions may include establishing redemption fees (and the terms and conditions thereof) or establishing rules which may operate to limit or restrict Participant rights under the Plan to effectuate transactions. The Plan Administrator may implement such actions without prior notice to Plan Participants.” 

*    *    *    *    *

 

I, Donald Packham, Senior Vice President, Human Resources, of the Corporation, hereby approve and adopt the foregoing amendment to the Plan.

 

Dated this 23rd day of December, 2003

 

_______________________________________

Senior Vice President, Human Resources

BP Corporation North America Inc.

 

 

	
             
 	
            - 73 -
 

 

 

 

AMENDMENT NO. 9

TO

BP CAPITAL ACCUMULATION PLAN

 

WHEREAS, BP Corporation North America Inc. (the “Corporation”) maintains the BP Capital Accumulation Plan (the “Plan”); 

WHEREAS, the Plan has previously been amended and further amendment of the Plan now is considered desirable; and

WHEREAS, pursuant to the power delegated to a Designated Officer under Section 16.1 of the Plan, the Senior Vice President, Human Resources, as a Designated Officer of the Corporation (or his delegee), has the authority to amend the Plan; 

NOW, THEREFORE, the Senior Vice President, Human Resources (or his delegee), of the Corporation hereby amends the Plan, in the following particulars:

 

1. Effective August 9, 2004, by adding the following new sentence to the end of Section 1.3 of the Plan as a part thereof: 

“Effective as of August 9, 2004, Annual Earnings shall include amounts classified as ‘Fire Brigade Pay’ paid to Eligible Employees covered by a collective bargaining agreement and employed at the Carson California Refinery.”

 

2. Effective January 1, 2005, by substituting the phrase “and invested in accordance with Section 6.3(a) of the Plan” for the phrase “and invested in the Company Stock Fund” in the first sentence of Section 4.10 of the Plan.

 

3. Effective January 1, 2005, by substituting the following for Section 6.3(a) of the Plan:

 “(a)    In accordance with procedures established by the Administrator, Matching Contributions shall be credited to the Member’s or Former Member’s Account in the proportion indicated by the Member or Former Member in his or 

 

 

	
             
 	
            - 74 -
 

 

 

her investment directions provided to the Administer in accordance with Section 6.2 of the Plan. In the absence of an investment direction by the Member or Former Member, and subject to such rules as the Administrator may make, Matching Contributions shall be credited to the Short-Term Investment Fund. Short-Term Investment Fund means the investment option under the Plan designated as the Short-Term Investment Fund by the Administrator.” 

 

*    *    *    *    *

 

I, Jeffery S. Heller, Assistant General Counsel of the Corporation, and delegee of the Senior Vice President, Human Resources, of the Corporation, hereby approve and adopt the foregoing amendment to the Plan.

 

Dated this 30th day of December, 2004.

 

____________________________________

Assistant General Counsel

BP Corporation North America Inc.

 

 

	
             
 	
            - 75 -
 

 

 

 

AMENDMENT NO. 10

TO

BP CAPITAL ACCUMULATION PLAN

 

WHEREAS, BP Corporation North America Inc. (the “Corporation”) maintains the BP Capital Accumulation Plan (the “Plan”); 

WHEREAS, the Plan has previously been amended and further amendment of the Plan now is considered desirable; 

WHEREAS, pursuant to the power delegated to a Designated Officer under the Plan, the President of the Corporation, as a Designated Officer of the Corporation, or his delegate, has the authority to amend the Plan; and

WHEREAS, in all other respects the Plan, as amended, will continue in full force and effect; 

NOW, THEREFORE, the President of the Corporation, or his delegate, hereby amends the Plan, effective as of March 28, 2005, by adding the following new language to the end of Section 8.1(c) of the Plan as a part thereof:

“In the event of a mandatory distribution greater than $1,000 in accordance with the provisions of this Section 8.1(c), if the Participant does not elect to have such distribution paid directly to an eligible retirement plan specified by the Participant in a direct rollover or to receive the distribution directly in accordance with this Section 8.1(c), then the Plan Administrator will pay the distribution in a direct rollover to an individual retirement plan designated by the Plan Administrator.”

 

*    *    *    *    *

 

 

 

	
             
 	
            - 76 -
 

 

 

 

I, Jeffery S. Heller, Assistant General Counsel of the Corporation, and delegate of the President of the Corporation, hereby approve and adopt the foregoing amendment to the Plan.

 

Dated this 29th day of December, 2005.

 

____________________________________

Assistant General Counsel

BP Corporation North America Inc.

 

 

 

	
             
 	
            - 77 -

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