Document:

ex-1001.htm

	 EXHIBIT 10.1
	 
	 

 

 

Rohm and Haas Company

 

Non-Qualified Retirement Plan

 

(As Amended and Restated Effective January 1, 2009)

 

 

ARTICLE I - INTRODUCTION

 

This is the Rohm and Haas Company Non-Qualified Retirement Plan (the "Plan"), which was amended and restated effective January 1, 2005.  The Plan is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended, (the "Code") and is to be construed in accordance with Section 409A of the Code and the regulations and other guidance issued thereunder.

 

This amendment and restatement of the Plan shall apply only to deferrals of compensation on or after January 1, 2005 and, except as otherwise provided herein, the provisions of this amendment and restatement shall be effective as of January 1, 2009.  Amounts considered "deferred" (under Section 409A of the Code and the regulations and other guidance issued thereunder) prior to January 1, 2005 shall continue to be subject to the terms of the Plan as in effect prior to January 1, 2005.

 

The purpose of the Plan is to provide additional pension benefits for a select group of management and highly compensated employees whose pre-retirement income involves significant performance-related award payments.

 

In addition, to the extent not provided for in the preceding paragraph, the Plan also provides additional pension benefits for employees whose pension benefits determined under the Rohm and Haas Company Retirement Plan (the "Retirement Plan") are limited by Section 415 of the Internal Revenue Code of 1986, as amended.

 

The Plan covers eligible employees hired on or after January 1, 2001, except for employees of Morton International, Inc. ("Standard Participants").  Standard Participants shall be subject to the provisions of the main portion of the Plan (the "Standard") which, except as otherwise provided, describes the Plan provisions applicable to all Participants.  Eligible employees of Morton International, Inc. who are hired on or after January 1, 2001 participate in the Plan as Legacy Morton Plan Participants, as discussed below.

 

The Plan also covers (i) eligible employees who elected to remain covered under the benefit structure of a Legacy Plan during the Pension Choice process, rather than to participate in the more recent benefit structure described in the "Standard" portion of the Retirement Plan and (ii) eligible employees of Morton International, Inc. who are hired on or after January 1, 2001 and are not eligible to participate in the Standard portion of the Retirement Plan (collectively, "Legacy Plan Participants").  Prior to this restatement, the Retirement Income of a Legacy Rohm and Haas Plan Participant and a Legacy Morton Plan Participant was calculated under and subject to the terms of the Rohm and Haas Non-Qualified Pension Plan and the Morton International, Inc. Excess Pension Plan, respectively (referred to collectively as the "Non-Qualified Legacy Plans").  Effective as of January 1, 2005, with respect to benefits accrued on or after January 1, 2005, the Non-Qualified Legacy Plans have been merged with and into the Plan, and the provisions of the Non-Qualified Legacy Plans, to the extent that they differ from the Standard provisions, have been preserved and catalogued at the end of the of the Standard portion of the Plan as "Riders." Therefore, effective as of January 1,2005, the Retirement Income of Legacy Plan Participants shall be determined under the Standard portion of the Plan, except to the extent superseded by the terms of an applicable Rider.

 

Finally, the Plan covers Legacy Plan Participants who elected to participate in the more recent benefit structure described in the "Standard" portion of the Retirement Plan during the Pension Choice process ("Former Legacy Plan Participants").  The Retirement Income of Former Legacy Plan Participants shall be calculated in two pieces:  the first piece shall be determined under the terms and provisions of the applicable Rider (or, prior to January 1, 2005, under the applicable Non-Qualified Legacy Plan), using service accrued up to the day before such Participant's Effective Pension Choice Date (however, compensation increases on or after the Participant's Effective Pension Choice date shall be counted in determining this piece).  

 

  

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The second piece shall be calculated under the terms and provisions of the Plan, using service accrued beginning on and after such Participant's Effective Pension Choice Date.

 

The following Table explains which Plan provisions are applicable to a particular group of Participants:

 

	
If the Participant is a:

	
Then the Participant is subject to the following Plan provisions:

	
Standard Participant

	
Articles I through X and Articles XIII through XV of the Standard portion of this Plan, and the Standard of the Retirement Plan

	
Former Legacy Plan Participant

	
Articles I through X and Articles XII through XV of Standard portion of this Plan, and the Standard of the Retirement Plan

	
Legacy Rohm and Haas Plan Participant

	
Articles I through XI and Articles XIII through XV of the Standard portion of this Plan, Rider No. 1 of this Plan and Rider No. 1 of the Retirement Plan

	
Legacy Morton Plan Participant

	
Articles I through XI and Articles XIII through XV of the Standard portion of this Plan, Rider No. 2 of this Plan and Rider No. 2 of the Retirement Plan

 

Notwithstanding the foregoing, no individual shall become a Participant in the Plan on or after March 1, 2009.

 

 

ARTICLE II -  DEFINITIONS

 

The terms used herein shall have the following meanings, unless a different meaning is clearly required by the context:

 

	
2.1  

	
Actuarial Equivalent or Actuarially Equivalent

 

"Actuarial Equivalent" or "Actuarially Equivalent" means, except as otherwise provided in an applicable Rider, the equivalent actuarial value of a single life annuity, determined based upon the advice of the Plan's actuary using the appropriate factors listed in Appendix B.

 

	
2.2  

	
Administrative Committee

 

Administrative Committee means the Rohm and Haas Benefits Administrative Committee.  The duties of the Administrative Committee are defined in Article XIII.  The Company has designated the Administrative Committee to be the named fiduciary of the Plan for administrative matters as outlined in the Plan.

 

	
2.3  

	
Administrative Leave of Absence

 

"Administrative Leave of Absence" means that period during which the Participant is absent without compensation and for which the Administrative Committee, in its sole discretion, has determined him to be on a "Leave of Absence" instead of being a terminated employee.

 

	
2.4  

	
Affiliated Company

 

"Affiliated Company" means the Sponsor and:

 

	
2.4.1  

	
each entity in a controlled group of corporations or trades or businesses as determined under Section 4l4(b) or Section 4l4(c) of the Code;

 

	
2.4.2  

	
each entity in an affiliated service group as determined under Section 4l4(m) of the Code; or

 

	
2.4.3  

	
any other organization required to be aggregated with the Sponsor pursuant to regulations under Section 414(o) of the Code.

 

  

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2.5  

	
Base Pay

 

"Base Pay" means normal wages or salary paid by the Employer including short term disability or sick pay, vacation pay, holiday pay, jury duty pay, bereavement pay, salary reductions under a Company-sponsored Code Section 401(k) or Code Section 125 plan, or a Code Section 132(f)(4) transportation fringe benefit program, personal time pay, military pay, expatriate split salary pay, and supplemental workers' compensation payments, but shall exclude any workers' compensation payments, long-tern disability payments and unused vacation payments.  If an Employee's Base Pay is paid in a currency other than United States dollars, conversion to United States dollars, for purposes of the Plan, shall be effected by means of determining the arithmetic average of such conversion rates used for accounting purposes by and in effect at the Company's headquarters in the United States during the 36 consecutive month period ending with the month as of which his benefits are determined.

 

	
2.6  

	
Beneficiary

 

"Beneficiary" means the person, trust or institution designated to receive benefits under the Plan upon the Participant's death, other than survivor benefits under a joint and survivor form of payment as described in Option B or Option C under Article VII.  The Beneficiary of a Participant who has not effectively designated a Beneficiary shall be the Participant's estate.

 

	
2.7  

	
Benefit Service

 

"Benefit Service" means, except as otherwise provided in an applicable Rider, that part of a Participant's Service that is used to calculate benefits under the Plan and shall be determined in accordance with the provisions of Articles III and XII of the Retirement Plan, and Articles IV or XII, as applicable, of this Plan.

 

	
2.8  

	
Board of Directors

 

"Board " means the Board of Directors of the Company.

 

	
2.9  

	
Bonus

 

"Bonus" includes the annual bonus awarded in March of each Plan Year (the "Annual Bonus"); the Leadership Council Bonus (the "LCB Bonus"); and certain sales incentive programs, as well as any "extra wages" earned while holding a temporary job with the Company.  The Annual Bonus shall be included in the term "Bonus" regardless of whether it is actually distributed in March.  The term "Bonus" excludes all other bonuses and special awards.

 

	
2.10  

	
Code

 

"Code" means the Internal Revenue Code of 1986, as amended.

 

	
2.11  

	
Company

 

"Company" means the Sponsor and such of its Affiliated Companies as may be designated from time to time by its Board of Directors and as may adopt the Plan.

 

	
2.12  

	
Compensation

 

"Compensation" means for all purposes unless specified otherwise, Base Pay, Bonus, overtime pay, Shift Payments and commissions.  For purposes of this Plan, a Participant's Compensation shall be calculated without reference to the limitations of Section 401(a)(17) of the Code.

 

	
2.13  

	
Determination Date

 

"Determination Date" means the date as of which a specified determination or calculation is made.

 

  

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2.14  

	
Disability or Disabled

 

"Disability" or "Disabled" means a Participant is unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, and as a result of such impairment is eligible to receive benefits under the long-term disability plan sponsored by the Company or is eligible to receive disability benefits under the Social Security Act as determined by the Social Security Administration.

 

	
2.15  

	
Disability Retirement

 

"Disability Retirement" means a Participant's Separation from Service on or after becoming Disabled.

 

	
2.16  

	
Early Retirement

 

"Early Retirement" means a Participant's Separation from Service on or after reaching age 55 with 5 years of Vesting Service, but before reaching age 65 (or upon meeting such other requirements as provided in Article XII).

 

	
2.17  

	
Effective Date

 

"Effective Date" of this amendment and restatement is January 1, 2009.  The original effective date of the Plan is April 1, 2001.

 

	
2.18  

	
Effective Pension Choice Date

 

"Effective Pension Choice Date" means the date on which a Legacy Plan Participant's choice, made pursuant to the Pension Choice process, became effective, as set forth in Appendix D of the Retirement Plan.

 

	
2.19  

	
Employee

 

"Employee" means any salaried employee of the Company who is employed on a regular full-time basis.

 

	
2.20  

	
Employer

 

"Employer" means the Sponsor and:

 

	
2.20.1  

	
any other entity included with the Sponsor in a controlled group of corporations or trades or businesses within the meaning of section 414(b) or section 414(c) of the Code, or an affiliated service group within the meaning of section 414(m) of the Code; and

 

	
2.20.2  

	
each other entity required to be aggregated with the Sponsor pursuant to regulations under section 414(o) of the Code; provided that any such employer shall be included within the term "Employer" only while a member of such a group including the Sponsor.

 

	
2.21  

	
Eligible Employee

 

"Eligible Employee" means any Employee, excluding any Employees who are Leased Employees, temporary Employees or temporary transfers, student co-op Employees or independent contractors as defined in the Retirement Plan.

 

	
2.22  

	
ERISA

 

"ERISA" means the Employee Retirement Income Security Act of 1974, as amended, and any regulations issued pursuant thereto.

 

  

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2.23  

	
Final Average Compensation

 

"Final Average Compensation" means, except as otherwise provided in an applicable Rider, for any Participant (except as otherwise provided in Article XII), the arithmetic average of the highest sixty (60) consecutive months of Compensation out of the last one hundred and twenty (120) months of Compensation.  In determining a Participant's Final Average Compensation, the following rules apply:

 

	
2.23.1  

	
Periods of zero Compensation will be ignored for purposes of determining the period of consecutive months;

 

	
2.23.2  

	
An employee with less than 120 months of Compensation will take the highest 60 consecutive months out of the entire Compensation history;

 

	
2.23.3  

	
An employee with less than 60 months of Compensation will take an average of all pay earned while participating in the Plan;

 

	
2.23.4  

	
Compensation earned prior to participating in the Plan, or in any case, before April 1, 2001, shall be included in calculating Final Average Compensation;

 

	
2.23.5  

	
For the purpose of calculating Final Average Compensation, all Bonuses will count in the month in which they are awarded; and

 

	
2.23.6  

	
The determination of Final Average Compensation for Legacy Plan Participants and Former Legacy Plan Participants shall be subject to the additional or alternative provisions of Article XII, and Rider Nos. 1 and 2, as applicable.

 

	
2.24  

	
Former Legacy Plan Participant

 

"Former Legacy Plan Participant" means a Participant in a Legacy Plan who irrevocably elected, through the Pension Choice process, to "switch" into the benefit structure described in the Standard portion of the Retirement Plan.  Any non-qualified pension benefits which may be accrued by a Former Legacy Plan Participant under this Plan shall be subject to the special provisions set forth in Article XII of this Plan.

 

	
2.25  

	
Grandfathered Amount

 

"Grandfathered Amount" means, with respect to any Participant, the amount of Retirement Income, if any, that is considered "deferred" under Section 409A of the Code and the regulations and other guidance issued thereunder prior to January 1, 2005, which amount shall continue to be subject to the terms of the Plan and the Non-Qualified Legacy Plans as in effect prior to January 1, 2005.

 

	
2.26  

	
Investment Committee

 

"Investment Committee" means the Rohm and Haas Benefits Investment Committee.  The duties of the Investment Committee are defined in Article XIII.  The Company has designated this Committee to be the named fiduciary of the Plan for financial matters as outlined in the Plan.

 

	
2.27  

	
Legacy Plan

 

"Legacy Plan" means the Rohm and Haas Pension Plan or the Morton International, Inc. Pension Plan.

 

	
2.28  

	
Legacy Plan Participant

 

"Legacy Plan Participant" means (i) either a Legacy Rohm and Haas Plan Participant or a Legacy Morton Plan Participant, as defined below (collectively referred to as "Legacy Plan Participants") who irrevocably elected in 2001, through the Pension Choice process, to remain covered by the benefit structure of a Legacy Plan and (ii) Eligible Employees of Morton International, Inc. who are hired on or after January 1, 2001 and are not eligible to participate in the Standard portion of the Plan.

 

  

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2.28.1  

	
Legacy Rohm and Haas Plan Participant

 

"Legacy Rohm and Haas Plan Participant" means any participant who elected to remain covered under the benefit structure of the former Rohm and Haas Pension Plan, the terms of which are preserved and set forth in Rider 1 of the Retirement Plan.

 

	
2.28.2  

	
Legacy Morton Plan Participant

 

"Legacy Morton Plan Participant" means any Participant who is covered under the benefit structure of the former Morton International, Inc. Pension Plan, the terms of which are preserved and set forth in Rider 2 of the Retirement Plan.

 

	
2.29  

	
Non-Qualified Legacy Plan

 

"Non-Qualified Legacy Plan" means the Rohm and Haas Non-Qualified Pension Plan or the Morton International, Inc. Excess Benefit Plan, as applicable.

 

	
2.30  

	
Normal Retirement

 

"Normal Retirement" means a Participant's Separation from Service on or after reaching age 65.

 

	
2.31  

	
Participant

 

"Participant" means, except as otherwise provided in an applicable Rider, any Eligible Employee who has met the conditions for participation in Article III.

 

	
2.32  

	
Pension Choice

 

"Pension Choice" means the process, as determined by the Administrative Committee, by which a Participant in a Legacy Plan elected to either remain covered by the terms and provisions of a Legacy Plan, or to "switch" into the benefit structure described in the Standard portion of the Retirement Plan.  Participants in a Legacy Plan who elected to remain in such Legacy Plan, are subject to the additional or alternative provisions of Rider Nos. 1 or 2 to the Plan, as applicable.  Participants who chose to "switch" into the new benefit structure described in the "Standard" portion of the Retirement Plan are subject to the additional provisions of Article XII of this Plan.

 

	
2.33  

	
Plan

 

"Plan" means the Rohm and Haas Company Non-Qualified Retirement Plan.

 

	
2.34  

	
Plan Year

 

"Plan Year" means the period beginning each December 31st at 12:01 a.m. and ending at midnight on December 30th of the following calendar year.

 

	
2.35  

	
Predecessor Company

 

"Predecessor Company" means any organization acquired by the Company.

 

	
2.36  

	
Retirement or Retires

 

"Retirement" or "Retires" means, a Participant's Normal Retirement, Early Retirement or Disability Retirement.

 

	
2.37  

	
Retirement Income

 

"Retirement Income" means the amount of vested pension benefit which a Participant is entitled to receive beginning on the applicable payment date provided in Article VII.

 

  

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2.38  

	
Retirement Plan

 

"Retirement Plan" means the Rohm and Haas Retirement Plan, effective April 1, 2001, as amended from time to time.  References herein to a particular article or section of the Retirement Plan refers to that article or section of the Retirement Plan document that was effective April 1, 2001, and to the provision under any successor plan document that corresponds to such article or section in substance, even if the numbering changes.

 

	
2.39  

	
Separation from Service

 

"Separation from Service" means a Participant's termination of employment with the Employer that meets the requirements of a "separation from service" as defined under Section 409A of the Code and the regulations and other guidance thereunder.

 

	
2.40  

	
Shift Payments

 

"Shift Payments" shall mean the shift differential payments made to individuals who work other than "day" shifts, and payments to supervisors of hourly employees who work a rotating shift or any shift other than a "day" shift ("rotating shift adjustment payments").

 

	
2.41  

	
Social Security Retirement Age

 

"Social Security Retirement Age" means the date specified in Article I of the Retirement Plan.

 

	
2.42  

	
Specified Employee

 

"Specified Employee" means a "specified employee" within the meaning of Section 409A(a)(2)(B)(i) of the Code, which, consistent with such Code provision, shall mean, for any 12-month period beginning on April 1 and ending on the following March 31, a Participant who, as of the preceding December 31, was (i) an officer of an Employer having annual compensation (as defined in Section 414(q)(4) of the Code) greater than $130,000 (as adjusted under Section 416(i)(l) of the Code), (ii) a "five-percent owner" of an Employer (as defined in Section 416(i)(1)(B) of the Code), or (iii) a person having annual compensation (as defined in Section 414(q)(4) of the Code) of more than $150,000 and who would be classified as a "five-percent owner" of an Employer under Section 416(i)(1)(B) of the Code if "one percent" were substituted for "five percent" each time it appears in the definition of such term.

 

	
2.43  

	
Sponsor

 

"Sponsor" means the Rohm and Haas Company.

 

	
2.44  

	
Standard

 

"Standard" means the standard provisions of the Plan, as set forth in Articles I through XV thereof and Appendices A and B thereto.

 

	
2.45  

	
Standard Participant

 

"Standard Participant" means any individual hired on or after January 1, 2001 by an Employer other than Morton International, Inc., who becomes a Participant in this Plan.

 

	
2.46  

	
United States Social Security Wage Base

 

"United States Social Security Wage Base" means the contribution and benefit base as set forth in the Federal Insurance Contributions Act, as amended.

 

  

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2.47  

	
Vesting Service

 

"Vesting Service" means, except as otherwise provided in an applicable Rider, that part of a Participant's Service that is used to calculate vesting under the Plan and shall be determined in accordance with the provisions of Articles III and XII of the Retirement Plan, and Articles IV and XII of this Plan.

 

 

ARTICLE III -  PARTICIPATION

 

	
3.1  

	
Conditions for Participation

 

Except as provided in Article XII or an applicable Rider, each Eligible Employee of the Company shall become a Participant on the first of the month coincident with or next following the date on which the Eligible Employee first becomes classified as an exempt level 14 or above.  Notwithstanding the foregoing, no individual shall become a Participant in the Plan on or after March 1,2009.

 

	
3.2  

	
Rehired Employees

 

Any Participant who terminates employment and returns as an Eligible Employee will become a Participant in the Plan as provided in Article X.

 

 

ARTICLE IV -  SERVICE CREDIT

 

	
4.1  

	
Benefit Service

 

Subject to the provisions of Article XII and any applicable Rider, a Participant's Benefit Service shall be the Benefit Service the Participant is credited with under Articles III and XII, as applicable, of the Retirement Plan.

 

	
4.2  

	
Vesting Service

 

Subject to the provisions of Articles XII and any applicable Rider, a Participant's Vesting Service shall be the Vesting Service the Participant is credited with under Articles III and XII, as applicable, of the Retirement Plan.

 

 

ARTICLE V -  AMOUNT OF RETIREMENT INCOME

 

	
5.1  

	
Normal Retirement

 

Except as provided in Section 5.4 below, and subject to the provisions of Article XII and any applicable Rider, the monthly Retirement Income payable to a Participant who Retires at age 65 shall be an amount expressed as a single life annuity equal to:

 

1.25% multiplied by Final Average Compensation multiplied by Benefit Service

 

MINUS

 

the monthly benefit payable to the Participant under the Retirement Plan in the form of a single life annuity commencing at his "Normal Retirement Date" (as defined in the Retirement Plan).

 

	
5.2  

	
Early Retirement

 

Except as may be otherwise provided in Article XII and any applicable Rider, the amount of Retirement Income of a Participant who Retires upon or after reaching age 55 with 5 years of Vesting Service, but before reaching age 65 (or

 

  

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upon meeting such other requirements for Early Retirement as provided in Article XII), shall be calculated as if the Participant was retiring at age 65, as described in Section 5.1 above; except that, in cases where the Participant retires between the ages of 55 and 62, his amount of Retirement Income shall be reduced by 0.5% (.005) for each month by which such Participant's payment commencement date under Article VII precedes the Participant's attainment of age 62.  A chart showing the appropriate reduction factor by age is provided in Table 1 of Appendix A Notwithstanding the foregoing, the reduction factor for a Participant who retires on an Involuntary Early Retirement Date as described in Article XI of the Retirement Plan shall be determined by adding four years to his age.

 

	
5.3  

	
Termination Before Eligibility for Early Retirement

 

Except as may be otherwise provided in Article XII and any applicable Rider, the amount of Retirement Income of a Participant who Separates from Service before becoming eligible for an Early Retirement shall be calculated in accordance with Section 5.1 above, and then actuarially reduced using the factors found in Table 2 of Appendix A.

 

	
5.4  

	
Late Retirement

 

Except as may be otherwise provided in Article XII and any applicable Rider, the calculation of the amount of Retirement Income for a Participant who Retires after age 65 shall be calculated in accordance with Section 5.1 above, but increased to reflect additional Benefit Service and Vesting Service, and increases in Final Average Compensation.  However, the amount of Retirement Income shall not include actuarial increases to reflect the later payment.

 

	
5.5  

	
Disability Retirement

 

Except as may be otherwise provided in an applicable Rider, a Participant who Retires due to a Disability will continue to accrue Benefit Service and Vesting Service until such Participant has attained age 65.  However, if a Participant Retires due to a Disability before attaining age 65, such Participant's Retirement Income shall be calculated in accordance with Section 5.1 above as of the date of such Retirement.  Upon reaching age 65, such Participant's Retirement Income shall be recalculated to include the Benefit Service and Vesting Service imputed to such Participant for period beginning on the date of his Retirement and ending on the Participant's attainment of age 65.

 

	
5.6  

	
Legacy Plan Participants

 

The determination of the amount of a Legacy Plan Participant's Retirement Income under this Plan shall be subject to the additional or alternative provisions of Rider Nos. l or 2 to the Plan, as applicable.

 

	
5.7  

	
Former Legacy Plan Participants

 

The determination of the amount of a Former Legacy Participant's Retirement Income under this Plan shall be subject to the additional provisions of Article XII.

 

  

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ARTICLE VI -   VESTING

 

	
6.1  

	
Vesting Schedule

 

Except as may be otherwise provided in an applicable Rider, a Participant shall become 100% vested in his Retirement Income on the earliest of (i) the date on which the Participant is credited with five (5) years of Vesting Service, (ii) the date on which the Participant reaches age 65, or (iii) the date on which the Participant becomes otherwise 100% vested in his "Accrued Benefit" (as defined in the Retirement Plan) under the Retirement Plan.

 

Prior to reaching any of the dates described in (i) through (iii) above, the Participant shall be 0% vested in his Retirement Income.

 

	
6.2  

	
Forfeiture of Vested Benefits Upon Termination for Cause

 

Notwithstanding any provision to the contrary in the Plan, including any applicable Rider, a Participant whose employment is terminated for violating the Rohm and Haas Company Code of Business Conduct and Ethics shall forfeit all previously accrued benefits and shall not be entitled to any benefits under the Plan.

 

 

ARTICLE VII -  TIMING AND FORM OF RETIREMENT INCOME PAYMENT

 

	
7.1  

	
Timing of Payment

 

Except as may be otherwise provided in an applicable Rider, benefits under the Plan shall be paid as follows:

 

	
7.1.1  

	
Normal or Late Retirement Benefit.  The Retirement Income payable to a Participant who Retires upon or after reaching age 65 shall commence on the last day of the month coincident with or next following the date of such Retirement.

 

	
7.1.2  

	
Early Retirement Benefit.  The Retirement Income payable to a Participant who experiences an Early Retirement shall commence on the last day of the month coincident with or next following the date of such Retirement.

 

	
7.1.3  

	
Disability Retirement Benefit.  The Retirement Income payable to a Participant who Retires due to a Disability shall commence on the last day of the month coincident with or next following the date of such Retirement.  Any amount accrued after such Retirement pursuant to Section 5.5 shall commence on the last day of the month coincident with or next following the date of on which the Participant attains age 65, and such amount shall be considered to be a separate payment.  For example, if the Retirement Income commences at Retirement in the form of a joint and survivor annuity because the Participant is married when he Retires but the Participant is no longer married when he attains age 65, the benefit commencing at age 65 would be paid in the form of a single life annuity.

 

	
7.1.4  

	
Delayed Payment to Specified Employees.  Notwithstanding Sections 7.1.1, 7.1.2, and 7.1.3, the Retirement Income of a Participant who is a Specified Employee at the time of his Separation from Service shall not commence before six months after the date of Retirement; provided that in no event shall payment commence before the date on which payment would otherwise commence under Sections 7.1.1, 7.1.2, and 7.1.3 and except that, if the Participant dies before payments commence, payment shall commence within 30 days of the Participant's death.  If commencement of such payment is delayed pursuant to this Section to a date later than such payment would otherwise commence under Sections 7.1.1, 7.1.2, and 7.1.3, the payment or payments to which such Participant would otherwise be entitled during the period of delay (including accumulated annuity payments) shall be paid in a single sum on the first day of the seventh month following such Participant's Retirement.  If such Participant dies during the period of delay required under this Section, the rights of any Beneficiary(ies) and/or a surviving spouse under Option B or C shall be determined as if payment had commenced without regard to such delay.  The foregoing requirement shall not apply to payments made under the circumstances described in Sections 7.4.1, 7.4.2 and 7.4.5 hereof.

 

 

  

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7.2  

	
Forms of Payment

 

Except as provided in Sections 7.4, 7.5 and 7.6, the form of payment of Retirement Income under this Plan shall be determined as follows:

 

	
7.2.1  

	
Payment Options.  A Participant may elect, subject to this Article VII, to receive his Retirement Income in one of the following forms, each of which shall be the Actuarial Equivalent of his Retirement Income expressed as a single life annuity:

 

	
7.2.1.1  

	
Option A:  Retirement Income payable in the form of a monthly single life annuity continuing throughout the lifetime of the Participant, with the last payment due on the last day of the month coincident with or immediately following the date death occurs.

 

	
7.2.1.2  

	
Option B:  With respect to a married Participant, Retirement Income payable during the Participant's life with the provision that after the Participant's death, an amount equal to 50% of the amount of Retirement Income payable during his life shall be continued during the life of, and shall be paid to, the Participant's surviving spouse.

 

	
7.2.1.3  

	
Option C:  A portion of the Retirement Income payable in the form of annuity provided under Option A or Option B and the balance payable in a lump sum in accordance with one of the following, as elected by the Participant:  (i) 25% annuity and 75% lump sum, (ii) 50% annuity and 50% lump sum, or (iii) 75% annuity and 25% lump sum.

 

	
7.2.1.4  

	
Option D:  A lump sum payment.  The following rules shall apply to lump sum payments (including lump sum payments elected under Option C):

 

	
7.2.1.4.1  

	
the lump sum payment will be calculated as of the end of the month preceding the distribution with Actuarial Equivalence determined using the applicable interest rate and applicable mortality table as set forth in Option 2 in Appendix B; and

 

	
7.2.1.4.2  

	
the cost-of-living benefit described in Article VIII shall not apply to Retirement Income paid as a lump sum.

 

	
7.2.2  

	
Default Form of Payment.  If a Participant fails to make (or is not entitled to make) a form of payment election pursuant to Section 7.2.3, he shall be deemed to have elected to receive his Retirement Income in the form of a single lump sum in accordance with Section 7.2.1.4, unless he changes this payment form pursuant to Section 7.S.

 

	
7.2.3  

	
Special Election Rule for 2006 and 2007.  Notwithstanding anything herein to the contrary, a Participant who accrued Retirement Income under the Plan or a Non-Qualified Legacy Plan on or before December 31, 2007 that is not included in his Grandfathered Amount, may make a form of payment election under Section 7.2.1 on or before December 31, 2007.  Any such Participant who fails to make a form of payment election by December 31, 2007 shall be deemed to have elected to receive payment of his Retirement Income in a lump sum in accordance with Section 7.2.1.4.  Notwithstanding the foregoing, (i) any election made on or after January 1, 2006 and on or before December 31, 2006 shall only apply to payments that would not otherwise be paid in 2006 absent such election and shall not cause a payment to be made in 2006 that would not otherwise be paid in 2006 absent such election, and (ii) any election or deemed election made on or after January 1, 2007 and on or before December 31, 2007 shall only apply to payments that would not otherwise be paid in 2007 absent such election or deemed election, and such election or deemed election shall not cause a payment to be made in 2007 that would not otherwise be paid in 2007 absent such election or deemed election.

 

	
7.2.4  

	
Cost-of-Living-Adjustment.  The Cost-of-Living Adjustment to pensions, described in Article VIII shall apply to the monthly payments continued to a spouse under Option B or Option C who survives a Retired Participant regardless of the age of the Participant at the time of death.  If such Participant dies prior to attainment of age 60, such Cost-of-Living Adjustment shall apply when the Participant would have attained age 60 as provided in Article VIII.

 

  

14

  

 

	
7.2.5  

	
Delayed Effectiveness of Forms of Payment Options.  The forms of payment provided under this Section 7.2 shall be effective as of January 1, 2007.  Prior to January 1, 2007, the available forms of payment shall be as described in the Plan as in effect on April 1, 2001.

 

	
7.3  

	
Pre-Retirement Death Benefits

 

	
7.3.1  

	
Married Participants.  Except as otherwise provided in an applicable Rider, if a married Participant who is vested in his Retirement Income dies before the earlier of (i) the date payment commences, or (ii) in the case of a Participant whose payment is delayed pursuant to Section 7.1.4 or 7.5.2, the date payment would have commenced absent such delay, the Participant's spouse, if living as of the date of the Participant's death, shall receive as a spouse's pre-retirement death benefit:  (a) in the case of a Participant who dies before attaining age 55, a lump sum payment equal to 50% of the value of the payment to which the Participant would have been entitled under Section 7.4.4 had he Separated from Service on the day before his death, and (b) in the case of a Participant who dies after attaining age 55, the benefit that would be paid if the Participant had elected a joint and 50% survivor annuity form of payment under Option B and had Retired on the day before his death; which benefit shall be paid in the any of the forms described in Section 7.2 as elected by the Participant during the time frame required under Section 7.2, subject to the cashout provisions of Section 7.4.3, and provided that, beginning January 1, 2009, death benefits shall be paid only in a lump sum.  Payment of death benefits shall commence within 30 days of the Participant's death.

 

	
7.3.2  

	
Unmarried Participants.  No pre-retirement death benefits shall be paid under the Plan if an unmarried Participant dies after Separation from Service and before the earlier of (i) the date payment commences, or (ii) in the case of a Participant whose payment is delayed pursuant to Section 7.1.4 or 7.5.2, the date payment would have commenced absent such delay.  If an unmarried Participant dies before Separation from Service, the pre-retirement death benefit described in Section 7.3.1 that would be paid to the Participant's spouse if the Participant had been married at the time of death shall instead be paid to the Participant's Beneficiary.

 

	
7.3.3  

	
Delay for Specified Employees or Change in Form of Payment.  If payment to a Participant is delayed pursuant to Section 7.1.4 or 7.5.2 and such Participant dies before payment commences but after payment would have commenced absent such delay, his Retirement Income shall be paid as follows:  (i) all amounts otherwise payable to the Participant that were unpaid during the delay period (including lump sum distributions and annuity payments accumulated and unpaid pursuant to Section 7.1.4 or 7.5.2) shall be paid within 30 days after such Participant's death to such Participant's Beneficiary and (ii) any survivor benefits payable upon such Participant's death shall be paid to the Participant's surviving spouse.

 

	
7.4  

	
Involuntary Cash Out

 

Except as otherwise provided in an applicable Rider and in Section 7.1.4, notwithstanding the time of payment set forth in Sections 7.1.1, 7.1.2 and 7.1.3 hereof and the form of payment elected by the Participant in accordance with Section 7.2, payment of a Participant's Retirement Income shall be made:

 

	
7.4.1  

	
to the extent necessary to comply with a domestic relations order (as defined in Section 414(p)(l)(B) of the Code) that meets the requirements of the Company's domestic relations order procedures applicable to non-qualified plans;

 

	
7.4.2  

	
to the extent necessary for the Participant to comply with an ethics agreement with the Federal government, and to the extent reasonably necessary to avoid the violation of applicable Federal, state or local ethics law or conflicts of interest law;

 

	
7.4.3  

	
in a single lump equal to the Actuarially Equivalent value of the Retirement Income payable to a Participant who is eligible to Retire and commence receiving payment in accordance with Section 7.1, within 30 days after such Participant's Retirement; provided that (i) upon receiving the payment, the Participant has no further interest in the Plan or any other deferred compensation plan of the Employer that is required to be aggregated with this Plan for purposes of Section 409A of the Code and (ii) the payment is not greater than $5,000; provided further that such payment shall not be made to a Participant who is a Specified Employee at the time of Retirement until six months after the date of such Retirement;

 

  

15

  

 

	
7.4.4  

	
in a single lump sum equal to the Actuarially Equivalent value of the Retirement Income payable to a Participant who is not eligible to Retire, within 30 days after such Participant's Separation from Service (without regard to amount); provided that such payment shall not be made to a Participant who is a Specified Employee at the time of his Separation from Service until six months after the date of such Separation from Service;

 

	
7.4.5  

	
to the extent necessary to comply with Federal income and employment tax withholding requirements and any corresponding withholding requirements of applicable state, local or foreign tax laws as the result of such Federal tax withholding, in accordance with regulations under Section 409A of the Code;

 

	
7.4.6  

	
to the extent required to be included in income as a result of a violation of Section 409A of the Code;

 

	
7.4.7  

	
to the extent necessary to comply with state, local or foreign tax obligations, including any additional Federal income tax withholding obligations related thereto;

 

	
7.4.8  

	
to the extent necessary to satisfy a debt of the Participant to the Company, where (i) such debt is incurred in the ordinary course of the employee employer relationship, (ii) the entire amount used to satisfy such debt in any fiscal year of the Company does not exceed $5,000 and (iii) the offset against such debt is made at the same time and in the same amount as such debt otherwise would have been due and collected from the Participant;

 

	
7.4.9  

	
to the extent of any settlement between the Company and the Participant of an arms length bona fide dispute as to the Participant's right to a deferred compensation amount under the Plan; provided that such settlement amount is at least 25% less than the present value of the disputed amount and is not made at the same time as or proximate to a downturn in the financial health of the Company; and

 

	
7.4.10  

	
in the sole discretion of the Administrative Committee, under any other circumstance permitted under Section 409A of the Code.

 

	
7.5  

	
Subsequent Change in Form of Payment Election

 

A Participant may elect to change his elected form of payment (or deemed elected form of payment if Section 7.2.2 applies) prior to the date upon which benefits under the previously elected form of payment would otherwise commence as follows:

 

	
7.5.1  

	
Change in Type of Life Annuity.  A Participant may change his elected form of payment from any type of annuity payment described in Options A and B under Section 7.2 to any other type of annuity described in such Options at any time provided that the Administrative Committee receives such change in election prior to the applicable payment commencement date set forth in Section 7.1.

 

	
7.5.2  

	
Other Changes.  A change in form of payment other than as described in Section 7.5.1 may only be made if the following requirements are met:

 

	
7.5.2.1  

	
The election to change the form of payment does not take effect for at least 12 months after the date such election is received by the Administrative Committee;

 

	
7.5.2.2  

	
The election to change the form of payment is received by the Administrative Committee at least 12 months before payment is scheduled to commence under the current payment election; and

 

	
7.5.2.3  

	
Payment under the new form of payment election does not commence for at least five years after the date on which payment would have commenced under the Participant's previous election (or deemed election pursuant to Section 7.2.2, and determined without regard to the delay in Section 7.1.4); provided that earlier payment may be made upon a Participant's death, in which case such payment shall commence within 30 days after the date of death.  If commencement of a payment is delayed pursuant to this Section, the payment or payments to which such Participant would otherwise be entitled during the period of delay (including accumulated annuity payments) shall be paid in a single sum on the first date on which benefits are payable under the Participant's new election.

 

 

  

16

  

 

	
7.6  

	
Certain Permitted Delays.

 

Notwithstanding any other provision of the Plan to the contrary, amounts payable hereunder may be delayed after the date(s) specified under this Article VII under the following circumstances, each to the extent permitted under Section 409A of the Code:

 

	
7.6.1  

	
if the Company reasonably anticipates that if a payment were made as scheduled, the Company's deduction with respect to such payment would not be permitted under Section 162(m) of the Code, provided that payment shall be made upon the earlier of (i) the earliest date upon which the Company reasonably anticipates that the Company's deduction of the payment will not be limited or eliminated by the application of Section 162(m) of the Code and (ii) if the Participant experiences a Separation from Service, as soon as practicable following such Separation from Service in the calendar year of such Separation from Service (or, if later, no later than 2-1/2 months following Separation from Service), subject to the delay, if applicable, set forth in Section 7.1.4.

 

	
7.6.2  

	
if the Company reasonably anticipates that the making of a payment would violate Federal securities laws or other applicable law, provided that the payment is made at the earliest date at which the Company reasonably anticipates that the making of the payment will not cause such violation.; and

 

	
7.6.3  

	
upon such other events or conditions as may be permitted in regulations or other guidance issued under Section 409A of the Code.

 

 

ARTICLE VIII -  COST-OF-LIVING ADJUSTMENTS TO PENSIONS

 

The Administrative Committee shall have the sole and absolute discretion to provide the Cost-of-Living Adjustment described below.  The Administrative Committee may base such a decision on any factors it deems relevant and is under no continuing obligation to provide a Cost-of-Living Adjustment for any year, regardless of whether it made such adjustments in prior years.  However, no Cost-of-Living Adjustment shall be provided with respect to benefits earned after December 30, 2008.  Accordingly, any Cost-of-Living Adjustment provided after December 30, 2008, shall be applied only to benefits the Participant earned before December 31, 2008 (determined after any early retirement reduction).  If a Participant accrues benefits under the Plan before December 31, 2008, and after December 30, 2008, the Participant shall receive the sum of (i) the pre-December 31, 2008, benefits with any Cost-of-Living Adjustments and (ii) the post-December 30, 2008, benefits without any Cost-of Living Adjustments.

 

	
8.1  

	
Cost of Living Adjustment

 

Any Participant age 60 or older who Retired from the Company at age 55 or later and who is receiving monthly payments, or any surviving spouse or Beneficiary of such a Participant who is receiving monthly payments, shall receive, subject to the Administrative Committee's discretion as described above, an annual Cost-Of-Living Adjustment equal to the percentage increase in the United States Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W Revised) from the previous December to the December of the year immediately preceding the March 31st adjustment date.  The Cost-of Living Adjustment is subject to the following additional conditions and limitations:

 

	
8.1.1  

	
The initial Cost-Of-Living Adjustment payable to the otherwise eligible Participant on the March 31st subsequent to the year of Retirement will be provided at the rate of 1/12 for each full month of Retirement during the preceding calendar year;

 

  

17

  

 

	
8.1.2  

	
Subsequent Cost-of-Living Adjustments payable to otherwise eligible Participants (or a surviving spouse or Beneficiary of a Participant) shall be the full amount of adjustment otherwise provided by this Section and without regard to Section 8.1.1 above;

 

	
8.1.3  

	
In no event shall the Cost-of-Living Adjustment in any year be greater than 3%;

 

	
8.1.4  

	
Should the increase in such Consumer Price Index be in excess of 3% in any year, the amount of such excess shall not be carried forward to any succeeding year; and

 

	
8.1.5  

	
There shall be no decrease in the amount of a Participant's Retirement Income by reason of any decrease in the CPI-W Revised that might take place in any year.  However, for any year(s) for which this subparagraph applies, determination of any subsequent increase in the Cost-of-Living Adjustment will be made using the last highest December level of the (CPI-W Revised) and not the level of the previous December.

 

	
8.1.6  

	
The Cost-or-Living Adjustment shall not apply to the Retirement Income of any Morton Legacy Plan Participant.

 

	
8.2  

	
Timing of Adjustment

 

Any such adjustment shall be payable with the monthly payment payable for the month of March following the close of such calendar year in an amount determined by Section 8.1.1 or Section 8.1.2.

 

	
8.3  

	
Former Legacy Rohm and Haas Plan Participants

 

The determination of the Cost-of-Living Adjustment payable to Former Legacy Rohm and Haas Plan Participants shall be subject to the additional provisions of Article XII.

 

 

ARTICLE IX -  ABSENCES

 

	
9.1  

	
In General

 

In general, when a Participant's earnings are suspended as a result of (i) temporary absences from work because of leave; (ii) indefinite absences due to sickness or accident; or (iii) an Administrative Leave of Absence, the Participant shall continue to remain in the Plan so long as he continues to satisfy the requirements of Article III and his employment relationship with the Company has not been terminated and he has not Separated from Service.  Benefit Service for such periods of absence shall be provided at the rate of 1/12 of a year of Benefit Service (as defined in Article IV and Article XI or Article XII, if applicable) for each month of absence.  In addition, if, during such period, the Participant Separates from Service and does not terminate his employment with the Company, Benefit Service shall be credited for the period after Separation from Service and before returning to active employment at the rate of 1/12 of a year of Benefit Service (as defined in Article IV and Article XI or Article XII, if applicable) for each month of absence.

 

	
9.1.1  

	
Absence because of military service in the Armed Forces of the United States shall be treated as termination of service for purposes of the crediting of Benefit and Vesting Service.  However, upon return from such a leave, the Participant shall be treated as reemployed by the Employer as provided in Section 3.4 of the Retirement Plan, and such Participant will receive Vesting Service and Benefit Service at the rate of 190 Hours of Service per month for each full month he was absent due to service in the military.

 

  

18

  

ARTICLE X -  REEMPLOYMENT

 

	
10.1  

	
Separation From Service

 

If a Participant experiences a Separation from Service prior to Retirement, and is subsequently reemployed as an Eligible Employee:

 

	
10.1.1  

	
Such Eligible Employee may again participate in the Plan as of the last day of the third full month following the date of reemployment retroactive in such case to the date of reemployment, provided, however, that if the Eligible Employee Separated from Service but did not terminate his employment, such Eligible Employee may again participate in the Plan on the first day after his Separation from Service on which he performs services for the Company;

 

	
10.1.2  

	
Such Eligible Employee will receive full credit for all service prior to the date he terminated; however, no Benefit Service shall be granted for the time from his date of termination to the date he was reemployed by the Company (and if the Eligible Employee Separated from Service but did not terminate employment, service will be credited in accordance with Section 9.1);

 

	
10.1.3  

	
Additional Retirement Income accrued shall be subject to the form of payment election in effect at the time of the Eligible Employee's previous Separation from Service unless another form of payment is elected in accordance with Section 7.5; and

 

	
10.1.4  

	
Such Eligible Employee's Retirement Income will be reduced by the Actuarial Equivalent value of the amount of Retirement Income that he has already received by reason of prior service.

 

	
10.2  

	
Re-Employed after Retirement

 

If a Participant who Retires under the provisions of this Plan is subsequently reemployed as an Eligible Employee:

 

	
10.2.1  

	
Such Eligible Employee may again participate in the Plan as of the last day of the third full month following his date of reemployment retroactive to the date of his reemployment, provided, however, that if the Eligible Employee Separated from Service but did not terminate his employment, such Eligible Employee may again participate in the Plan on the first day after his Separation from Service on which he performs services for the Company;

 

	
10.2.2  

	
Such Eligible Employee will receive full credit for all service prior to the date he terminated; however, no Benefit Service shall be granted for the time from the Participant's original date of Retirement to the date he was reemployed by the Company (and if the Eligible Employee Separated from Service but did not terminate employment, service will be credited in accordance with Section 9.1);

 

	
10.2.3  

	
Additional Retirement Income accrued shall be subject to the form of payment election in effect at the time of the Eligible Employee's previous Retirement unless another form of payment is elected in accordance with Section 7.5;

 

	
10.2.4  

	
If the Eligible Employee previously elected an annuity form of payment, upon such reinstatement in the Plan, all Retirement Income payments under the Plan shall continue and the Participant's Retirement Income payable upon subsequent Retirement shall be the sum of (a) + (b), where:

 

	
(a)  

	
equals the monthly amount of Retirement Income the Employee had been receiving prior to his date of reemployment; and

 

	
(b)  

	
equals the monthly amount of Retirement Income accrued by the Participant, if any, based upon the Benefit Service credited between the date of reemployment and the date of subsequent Retirement; and

 

  

19

  

 

	
10.2.5  

	
If the Eligible Employee previously received a lump sum distribution of his Retirement Income, upon such reinstatement in the Plan, his Retirement Income will be reduced by the Actuarial Equivalent value of the Retirement Income that he has already received by reason of prior service.

 

 

ARTICLE XI -  PROVISIONS FOR LEGACY PLAN PARTICIPANTS

 

The terms and provisions regarding the benefits of Legacy Plan Participants who irrevocably elected, through the Pension Choice process, to remain covered under the benefit structure of a Legacy Plan, or who are not eligible to participate in the Standard portion of the Plan, are contained in (i) Articles I through X and XIII through XV of the Standard portion of this Plan to the extent not superseded by an applicable Rider, (ii) for Legacy Rohm and Haas Plan Participants, Rider No. 1 of this Plan and Rider No. 1 of the Retirement Plan, and (iii) for Legacy Morton Plan Participants, Rider No. 2 of this Plan and Rider No. 2 of the Retirement Plan.

 

 

ARTICLE XII -  - PROVISIONS FOR FORMER LEGACY PLAN PARTICIPANTS

 

The provisions of this Article XII are applicable to Legacy Plan Participants who irrevocably elected, through the Pension Choice process, to "switch" into and be covered by the benefit structure of the Standard portion of the Retirement Plan on a prospective basis ("Former Legacy Plan Participants").  To the extent that the provisions of this Article XII conflict with any other provisions in this Plan, the provisions in this Article XII shall control.

 

	
12.1  

	
Special Definitions for Former Legacy Plan Participants

 

	
12.1.1  

	
Participation Commencement Date.  Former Legacy Plan Participants shall become Participants in this Plan immediately as of their Effective Pension Choice Date.  Notwithstanding the foregoing, no individual shall become a Participant in the Plan on or after March 1, 2009.

 

	
12.1.2  

	
Benefit Service.  Benefit Service for Former Legacy Plan Participants will be calculated as follows:

 

	
12.1.2.1  

	
The amount of Benefit Service under the applicable Non-Qualified Legacy Plan as of the day before the Participant's Effective Pension Choice Date calculated in whole and partial years; PLUS

 

	
12.1.2.2  

	
The amount of Benefit Service under this Plan, beginning on the Effective Pension Choice Date, using such date as the beginning of the twelve (12) month computation period.

 

	
12.1.3  

	
Vesting Service.  Vesting Service for Former Legacy Rohm and Haas Plan Participants will be calculated from the Participant's date of hire by the Company under this Plan.  Vesting Service for Former Legacy Morton Plan Participants will be calculated in two pieces as follows:  The first piece is the vesting service as calculated under the applicable Non-Qualified Legacy Plan ending on the day before the Participant's Effective Pension Choice Date.  The second piece will be calculated beginning on the Effective Pension Choice Date using the method as provided under this Plan.

 

	
12.1.4  

	
Final Average Compensation.  Final Average Compensation shall be determined as of the Former Legacy Plan Participant's Separation from Service date for purposes of calculating the benefit accrued both before and after the Participant's Effective Pension Choice Date.

 

	
12.2  

	
Amount of Retirement Income

 

	
12.2.1  

	
General Rule.  The Retirement Income of a Former Legacy Plan Participant shall be calculated in two separate pieces which are then added together, as follows:  First, the Former Legacy Plan's benefit will be calculated under the applicable Non-Qualified Legacy Plan, using such Participant's current age, years of Benefit Service as of his Effective Pension Choice Date and Final Average Compensation as of his Separation from Service Date (the "pre-switch" piece).  Then, the Former Legacy Plan Participant's benefit will be calculated under this Plan, using such Participant's current age and years of Benefit Service and Final Average Compensation as of his Separation from Service date (the "post-switch" piece).  Then the "pre-switch" and "post-switch" benefits will be added together.

 

 

  

20

  

 

	
12.2.2  

	
Special Benefit Formula for Certain Former Legacy Rohm and Haas Plan Participants.  At the discretion of the Administrative Committee, a Former Legacy Rohm and Haas Plan Participant who has reached age 65 while an active employee of the Company shall have the amount of his Retirement Income that accrued before April 1, 2001 calculated under the "Special Formula" described below.  The Administrative Committee may base such decision on any factors it deems relevant and shall not be bound, or have its discretion in any way limited or restricted, by past determinations.  The Special Formula is not available to Retirement Income accrued after April 1, 2001.

 

Special Formula:  A Participant's monthly Retirement Income as of the Participant's attainment of age 65 shall be a single life annuity equal to 1/12th x (A -B) x C, where:

 

	
  

	
A =

	
2% of Final Average Compensation1 plus Award Program Adjustment*, minus 0.35% of Covered Compensation*, multiplied by years of Benefit Service (up to a maximum of 44 years)

 

	
  

	
B =

	
the monthly benefit payable to the Participant under the Retirement Plan in the form of a single life annuity; and

 

	
  

	
C =

	
A percentage, not to exceed 100%, determined by dividing the number of months in the last 120 months during which the Participant was a level 14 or above, by 60.

 

	
12.2.3  

	
Special Rules for the Reduction of Retirement Income.  The Amount of Retirement Income for Former Legacy Plan Participants who Retire when eligible to receive early retirement benefits under Section 5.2 or who Separate from Service before reaching age 55, shall be reduced as described under Sections 5.2 and 5.3 of this Plan, subject to the following:

 

	
12.2.3.1  

	
Automatic Waiver of Reduction Factors for Benefits Accrued Before April 1, 2001 for Certain Former Legacy Rohm and Haas Plan Participants.  The amount of Retirement Income accrued before April 1, 2001 by Former Legacy Rohm and Haas Plan Participants who (i) retire on an Involuntary Early Retirement Date, as provided in Article XI of the Retirement Plan, and (ii) who Separate from Service before reaching age 55 with five years of Vesting Service, shall not be reduced as described under Sections 5.2 and 5.3 of this Plan.

 

	
12.2.3.2  

	
Discretionary Waiver of Reduction Factors for Benefits Accrued Before April 2001 for Certain Former Legacy Rohm and Haas Plan Participants.  The reduction described in Sections 5.2 and 5.3 of this Plan applicable to the amount of Retirement Income accrued before April, 2001 by Former Legacy Rohm and Haas Plan Participants who (i) do NOT retire on an Involuntary Early Retirement Date as provided in Article XI of the Retirement Plan, and (ii) who Separate from Service before reaching age 55 with five years of Vesting Service, maybe waived at the discretion of the Administrative Committee.  The Administrative Committee may base such decision on any factors it deems relevant and shall not be bound, or have its discretion in any way limited or restricted, by past determinations.

 

	
12.2.3.3  

	
Special Reduction Factors for Benefits Accrued Before April l, 2001 for Certain Former Legacy Morton Plan Participants.  The amount of Retirement Income accrued before April 1, 2001 by Former Legacy Morton Plan Participants who (i) retire on an Involuntary Early Retirement Date, as provided in Article H of Rider 2 of the Retirement Plan, and (ii) are at least age 55 on such date, shall be reduced as described in Table 3 of Appendix A of this Plan.

 

  

* The terms "Final Average Compensation," "Award Program Adjustment," and "Covered Compensation" shall have the meanings as set forth in Rider 1 to the Rohm and Haas Company Non-Qualified Retirement Plan, as amended and restated effective January 1, 2005.

 

  

21

  

 

	
12.2.3.4  

	
No Waiver of Reduction Factors for Benefits Accrued After April 1, 2001.  The Amount of Retirement Income accrued after April 1, 2001 by Former Legacy Rohm and Haas Plan Participants who Separate from Service before reaching age 55 with five years of Vesting Service shall be reduced as described under Sections 5.2 and 5.3 of this Plan.

 

	
12.3  

	
Social Security Supplemental Benefit for Certain Former Legacy Rohm and Haas Plan Participants

 

Former Legacy Rohm and Haas Plan Participants who are age 55 but not yet 62 and who retire on an Involuntary Early Retirement Date, as provided in Article XI of the Retirement Plan, shall be entitled to a Social Security Supplemental Benefit of four hundred dollars ($400) per month.  Payment of the Social Security Supplemental Benefit shall be subject to the following rules:

 

	
12.3.1  

	
Payments of the Social Security Supplemental Benefit will commence at the time provided in Section 7.1 and continue until the end of the month prior to the month in which the Participant is first eligible to receive a Social Security benefit equal to 80% of the total Social Security benefit he would be eligible to receive upon reaching his Social Security Retirement Age; provided, however, that in no event shall the Social Security Supplemental Benefit be paid after the end of the month coincident with or next preceding the date of the Participant's death.  The Social Security Supplemental Benefit payable pursuant to this Section 12.3 shall not be affected by the form of benefit selected pursuant to Article VII, except that the Supplemental Benefit shall be payable in an Actuarially Equivalent lump sum if benefits are payable in a lump sum pursuant to Article VII.

 

	
12.3.2  

	
Former Legacy Rohm and Haas Plan Participants who do not retire on an Involuntary Early Retirement Date, as provided in Article H of Rider 1 of the Retirement Plan, may receive the benefit described in this Section 12.3 at the discretion of the Administrative Committee.  The Administrative Committee may base such decision on any factors it deems relevant and shall not be bound, or have its discretion in any way limited or restricted, by past determinations.

 

	
12.3.3  

	
The Social Security Supplemental Benefit payable under this Section 12.3 shall be offset by any Social Security Supplemental Benefit also payable to a Former Legacy Rohm and Haas Plan Participant under Article XI of the Retirement Plan.

 

	
12.4  

	
Accelerated Cost of Living Adjustment for Certain Former Legacy Rohm and Haas Plan Participants.

 

Former Legacy Rohm and Haas Plan Participants age 55 or older who Retire on an Involuntary Early Retirement Date, as provided in Article XI of the Retirement Plan, shall be entitled to begin to receive the cost-of-living adjustments described in Article VIII of this Plan beginning at age 55.  Former Legacy Rohm and Haas Plan Participants who do NOT retire on an Involuntary Early Retirement Date, as provided in Article XI of the Retirement Plan, may receive the benefit described in this Section 12.4 at the discretion of the Administrative Committee.  The Administrative Committee may base such decision on any factors it deems relevant and shall not be bound, or have its discretion in any way limited or restricted, by past determinations.

 

 

ARTICLE XIII -  ADMINISTRATION OF THE PLAN

 

	
13.1  

	
Appointment

 

The Administrative Committee will be responsible for the administration of the Plan and the Investment Committee will be responsible for the financial performance of the Plan.  Members of the Administrative Committee shall be appointed by the Chief Executive Officer, or his designee.  Members of the Investment Committee shall be appointed by the Board of Directors.

 

	
13.2  

	
Responsibilities and Authority of the Administrative Committee

 

The Administrative Committee shall have the full responsibility to represent the Company and the Participants in all things it may deem necessary for the proper administration of the Plan.  Subject to the terms of the Plan, the decision 

 

  

22

  

 

of the Administrative Committee upon any question of fact, interpretation, definition or procedure relating to the administration of the Plan shall be conclusive.  The responsibilities of the Administrative Committee shall include the following:

 

	
13.2.1  

	
Verifying all procedures by which payments to Participants and their Beneficiaries are authorized;

 

	
13.2.2  

	
Deciding all questions relating to the eligibility of Employees to become Participants in the Plan;

 

	
13.2.3  

	
Interpreting the provisions of the Plan in all particulars;

 

	
13.2.4  

	
Establishing and publishing rules and regulations for carrying out the Plan;

 

	
13.2.5  

	
Preparing an individual record for each Participant in the Plan, which shall be available for examination by such Participant, the Investment Committee and its members, or other authorized persons; and

 

	
13.2.6  

	
Reviewing and answering any denied claim for benefits that has been appealed to the Administrative Committee under the provisions of Section 15.6.

 

	
13.3  

	
Governance

 

The following general provision shall govern the actions of either the Administrative or Investment Committee:

 

	
13.3.1  

	
The Committee shall choose a chairman from its members and shall appoint a secretary who shall keep minutes of the Committee's proceedings and shall be responsible for preparing such reports as may be advisable for the administration of the Plan.  The Committee may employ and compensate such advisory, clerical, and other employees as it may deem reasonable and necessary to the performance of its duties.

 

	
13.3.2  

	
The action of the Committee shall be determined by a majority vote of all its members, except that no member of the Committee may vote on any question relating specifically to such individual.

 

	
13.3.3  

	
The members of the Committee shall serve without compensation for their services as such.  All expenses of the Committee shall be paid by the Company.

 

	
13.3.4  

	
The chairman or the secretary of the Committee may execute any written direction on behalf of the Committee.

 

	
13.3.5  

	
The Committee may, at its discretion, allocate among its members or to other persons those functions and responsibilities which it deems advisable for the efficient and effective operation and management of the Plan.

 

	
13.3.6  

	
Except as expressly provided, neither the Committee nor any member thereof shall be in any way subject to any suit or litigation or to any legal liability for any cause or reason or thing whatsoever in connection with the administration or financial performance of the Plan.

 

 

ARTICLE XIV -  FUTURE OF THE PLAN

 

The Company expects to continue the Plan indefinitely, but necessarily reserves the right at any time to reduce, suspend or discontinue payments to be made by it as provided hereunder.  The Company reserves the right to amend or discontinue the Plan at any time and without further notice.  In the event of a Plan termination, benefits accrued at the time of termination shall be paid in accordance with Article VII; provided that the Company may accelerate payments to the extent permitted under Section 409A of the Code.

 

  

23

  

ARTICLE XV -  GENERAL PROVISIONS

 

	
15.1  

	
Funding of Plan

 

This Plan is an unfunded arrangement.  The right of any Participant, surviving spouse or Beneficiary to receive future payments under the provisions of the Plan shall be an unsecured claim against the general assets of the Company.  Any trust, and any other fund, account, contract or arrangement that the Company chooses to establish for the future payment of benefits under this Plan to a Participant, surviving spouse or Beneficiary shall remain part of the Company's general assets and no person claiming payments under the Plan shall have any right, title or interest in or to any such trust, fund, account, contract or arrangement.

 

	
15.2  

	
Construction

 

Whenever any gender is used herein, it is intended also to cover the other gender where appropriate, and wherever the singular is used, it shall be interpreted as including the plural.

 

	
15.3  

	
Anti-Assignment/Anti-Alienation of Benefits and Payments

 

Except as otherwise specifically provided herein, to the extent permitted by law, payments to and benefits under the Plan shall not be assignable, since they are primarily for the support and maintenance of the Participant after retirement.  To extent permitted by law, such payments and benefits shall not be subject to attachment by creditors of, or through legal processes against, any Participant, Beneficiary, or surviving spouse.

 

	
15.4  

	
No Right to Employment

 

Participation in the Plan shall not give any Employee the right to be retained in the service of the Company, nor any right or claim to annuity income unless such right has specifically accrued under the terms of the Plan.

 

	
15.5  

	
Incapacity

 

If any person entitled to receive any benefits hereunder is a minor, or is deemed by the Administrative Committee or is adjudged to be legally incapable of giving a valid receipt and discharge for such benefits, they will be paid to the duly appointed guardian, custodian or committee of such minor or incompetent, or they maybe paid to such persons who the Administrative Committee believes are caring for or supporting such minor or incompetent.

 

	
15.6  

	
Claims

 

Any Participant, spouse or Beneficiary who claims to be entitled to the payment of a benefit under the Plan, should bring the matter to the attention of the Company, normally through a local personnel department.  If a specific claim as to the amount of any benefit, the method of payment or any other matter under the Plan is denied, the claimant will be provided with a written notice, normally within 90 days of the date the claim was filed.

 

The notice will include:

 

	
15.6.1  

	
the specific reason or reasons for the denial;

 

	
15.6.2  

	
the specific reference or references to the Plan provisions on which the denial is based;

 

	
15.6.3  

	
a notice that the claimant or the claimant's duly authorized representative, any appeal the denial to the Administrative Committee within 60 days; and

 

	
15.6.4  

	
a description of any additional information or material necessary to perfect the claim and an explanation of the need for such material or information.

 

In the event of an appeal, the claimant or the claimant's representative, may submit a written application for review of the denial, may examine documents relating to this Plan or the claim, and may submit written issues, comments, and documents.  Such appeal will be promptly considered by the Administrative Committee.

 

  

24

  

 

	
15.7  

	
Additional Claims Procedures for Section 409 A

 

If a Participant or Beneficiary believes he is entitled to have received benefits but has not received them, the Participant or Beneficiary must accept any payment made under the Plan and make prompt and reasonable, good faith efforts to collect the remaining portion of the payment, as determined under Treasury Regulation section 1.409A-3(g).  For this purpose (and as determined under such regulation), efforts to collect the payment will be presumed not to be prompt, reasonable, good faith efforts, unless the Participant or Beneficiary provides notice to the Plan Administrator within 90 days of the latest date upon which the payment could have been timely made in accordance with the terms of the Plan and the regulations under Code Section 409A, and unless, if not paid, the Participant or Beneficiary takes further enforcement measures within 180 days after such latest date.

 

	
15.8  

	
Plan Interpretation and Section 409A

 

Notwithstanding the other provisions hereof, this Plan shall be construed and interpreted to comply with section 409A of the Internal Revenue Code of 1986, as amended ("Section 409A") and if necessary, any provision shall be held null and void to the extent such provision (or part thereof) fails to comply with Section 409A or regulations thereunder.  However, in no event shall the Company, its officers, directors, employees, parents, subsidiaries, or affiliates be liable for any additional tax, interest, or penalty incurred by a Participant or Beneficiary as a result of the Plan's failure to satisfy the requirements of Section 409 A of the Code, or as a result of the Plan's failure to satisfy any other applicable requirements for the deferral of tax.

 

	
15.9  

	
Administrative Delay

 

The Plan Administrator may make payment on any day later than the date specified in the Plan as a result of administrative delay to the extent that such payment is treated as being paid on the date specified in the Plan under Treasury Regulation section 1.409A-3(d), which generally permits payment to be made later within the same calendar year, or, if later, within 2-1/2 months following the date specified in the Plan, provided that the Participant is not permitted to designate the taxable year of payment.

 

  

25

  

APPENDIX A

 

ROHM AND HAAS COMPANY

BENEFIT REDUCTION FACTORS

 

 

TABLE ONE:  EARLY RETIREMENT REDUCTION FACTORS Months

 

 

TABLE TWO:  ACTUARIAL REDUCTION FACTORS

 

 

 

 

  

26

  

 

 

 

TABLE THREE:  INVOLUNTARY EARLY RETIREMENT DATE REDUCTION FACTORS FOR LEGACY MORTON PLAN PARTICIPANTS

 

  

27

  

 

 

  

28

  

APPENDIX B - ACTUARIAL EQUIVALENT VALUES

Effective January 1, 2005

 

Actuarial equivalence under the Plan is determined using the factors used for calculating actuarial equivalence under the Standard portion of the Pension Plan.  The current factors are as set forth below.  Any changes to the applicable factors under the Pension Plan shall automatically apply to this Plan and this Appendix B shall be updated accordingly.

 

	
1.

	
Single Life Annuity payable on the last day of month coincident with or next following attainment of age 65 converted into Actuarial Equivalent Options other than a Lump Sum:

 

	
Annual Interest Rate

	
Mortality Table

	
7%

	
1984 PBGC Unisex Table; use Setback 1 for Participant and Setback 2 for Beneficiary

 

	
2.

	
Single Life Annuity payable on the last day of month coincident with or next following attainment of age 65 converted into Actuarial Equivalent Lump Sum Payment:

 

	
Annual Interest Rate

	
Mortality Table

	
The applicable interest rate under Section 417(e) of the Code (as determined under the Retirement Plan)

If the resulting interest rate is greater than 7%, then .5% will be subtracted from the interest rate, but in no event shall the adjusted rate be reduced below 7%.

	
The applicable mortality table under Section 417(e) of the Code (as determined under the Retirement Plan)

 

However, the amount of any lump sum payment paid after December 30, 2008, shall not be less than the Actuarial Equivalent lump sum payment, determined as of the payment date, of the single life annuity payable on the last day of month coincident with or next following attainment of age 65 of the benefits the Participant accrued under the Plan as of December 30, 2008, determined using the following assumptions:

 

	
Annual Interest Rate

	
Mortality Table

	
The lesser of (A) the average of the annual rate of interest on 30 Year Treasury Securities for June, July and August of the Plan Year preceding the Plan Year of distribution or (B) the rate for August of the Plan Year preceding the Plan Year of distribution.  If the resulting interest rate is greater than 7%, then .5% will be subtracted from the interest rate, but in no event shall the adjusted rate be reduced below 7%

	
94 GAR

  

29

  

RIDER NO. 1

 

SPECIAL PROVISIONS OF THE FORMER ROHM AND HAAS NON-QUALIFIED PENSION PLAN

 

This Rider No. 1 preserves certain provisions of the Rohm and Haas Non-Qualified Pension Plan as in effect on April 1, 2001 for Legacy Rohm and Haas Plan Participants.  The provisions of this Rider No. 1 apply only to Legacy Rohm and Haas Plan Participants and supersede any conflicting provisions of the Standard portion of the Plan.  All capitalized terms used herein, which are not otherwise defined below, shall have the meaning given to them under Article II of the Standard portion of the Plan.

 

 

ARTICLE I - DEFINITIONS

 

The following words and phrases as used herein have the following meanings unless a different meaning is plainly required by the context:

 

	
1.1.

	
"Actuarial Equivalent" or "Actuarially Equivalent" means a benefit of equivalent actuarial value to the benefit which would otherwise have been provided to the Participant, determined on the basis of appropriate actuarial assumptions and methods as set forth in Schedules 1A and 1B attached hereto, or in any situation or case not described or set forth in the Retirement Plan, as determined by the Administrative Committee.

 

	
1.2.

	
"Annual Performance Award Program" means the Company's performance award program as in effect on January 1, 1992, and as may be amended from time to time.

 

	
1.3.

	
"Award Program Adjustment" means the greater of:

 

	
  

	
1.3.1.

	
the annual average of the sum of awards paid to a Participant under the Annual Performance Award Program during the 60 month period immediately prior to the Participant's Retirement or other Separation from Service; or

 

	
  

	
1.3.2.

	
the annual average of the sum of awards paid to a Participant under the Annual Performance Award Program during the 84 month period immediately prior to the Participant's Retirement or other Separation from Service.  Such average shall be determined by dividing the 84 month period described in the preceding sentence into seven consecutive twelve month periods, disregarding the 12-month period with the highest award and the 12-month period with the lowest award and averaging the awards for the remaining five twelve month periods.

 

	
  

	
1.3.3.

	
Payments of awards under the Annual Performance Award Program shall be deemed to have been paid over a full calendar year in 12 equal monthly installments during the calendar year in which they were earned.

 

	
  

	
1.3.4.

	
If a Participant had less than 60 or 84 months, as applicable, of employment with the Company or an Affiliated Company, then the relevant period referred to above shall be reduced to the greatest number of the Participant's total months of employment that is divisible by twelve.

 

	
1.4.

	
"Basic Amount of Early Retirement Pension" means the pension benefit to which a Participant is entitled to upon an Early Retirement under Article V.

 

	
1.5.

	
"Basic Amount of Normal Retirement Pension" means the pension benefit to which a Participant is entitled to upon a Normal Retirement under Article IV.

 

	
1.6.

	
"Benefit Service" means that part of a Participant's Service that is used to calculate benefits under the Plan and shall be determined in accordance with the provisions of Rider No. 1 of the Retirement Plan and Article III of this Rider.

 

	
1.7.

	
"Covered Compensation" means the lesser of:

 

	
  

	
1.7.1.

	
the Participant's Final Average Compensation; or;

 

  

30

  

 

	
  

	
1.7.2.

	
the average of the maximum amount of the Participant's compensation considered wages under section 3121 of the Code for each year until the earlier of (i) the Determination Date, or (ii) the Participant's Social Security Retirement Age.

 

	
1.8.

	
"Disability" or "Disabled" means a Participant is unable to engage in any substantial gainful activity by reason of a medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, and as a result of such impairment is eligible to receive benefits under the long-term disability plan sponsored by the Company.

 

	
1.9.

	
"Disability Retirement" means a Participant's Separation from Service on or after becoming Disabled.

 

	
1.10.

	
"Early Retirement" means a Participant's Separation from Service on or after reaching age 50 but before reaching age 65.

 

	
1.11.

	
"Earnings Rate" means an Employee's regular annual combined base salary from the Company (including any legally required thirteenth or fourteenth month of pay) on any given date.  Supplementary compensation for work time in excess of 40 hours per week, shift differentials, premium payor bonuses will not be included in the Earnings Rate of any Employee.  An Employees Earning's Rate shall not be affected by any salary reduction agreement in effect between the Company and the Employee under the Rohm and Haas Company Employee Stock Ownership and Savings Plan or under any plan maintained by the Company under Section 125 of the Code.

 

If an Employee's base salary is paid in a currency other than United States dollars, conversion to United States dollars, for purposes of the Plan, shall be effected by means of determining the arithmetic average of such conversion rates used for accounting purposes by and in effect at the Company's headquarters in the United States during the 36 consecutive month period ending with the month as of which his benefits are determined.

 

For purposes of this Plan, a Participant's Earnings Rate shall be calculated without reference to the limitations of Section 401 (a)(17) of the Code.

 

	
1.12.

	
"Final Average Compensation" means, as of any given date, the highest arithmetic average of an Employee's Earnings Rate (either as a salaried Employee or as an hourly-paid Employee) during any thirty-six (36) consecutive months out of the final 120 month period as of which his benefits are determined.  If this 36 month period is the final 36 months of employment, then the 36th month Earnings Rate will not be included and the 35th month will be counted twice.  For purposes of this Plan, a Participant's Final Average Compensation shall be calculated without reference to the limitations of Section 401 (a)(17) of the Code.

 

	
1.13.

	
"Normal Retirement" means a Participant's Separation from Service on or after reaching age 65.

 

	
1.14.

	
"Participant" means any Employee included in the Plan or eligible to receive benefits from the Plan under this Rider.

 

	
1.15.

	
"Retirement" or "Retires" means a Participant's Normal Retirement, Early Retirement or Disability Retirement.

 

	
1.16.

	
"Retirement Income" means the amount of vested pension benefit which a Participant is entitled to receive beginning on the applicable payment date provided in Article VII of the Standard portion of the Plan.

 

	
1.17.

	
"Service" means each month of service credited to a Participant in accordance with the provisions of Rider No. 1 of the Retirement Plan.

 

ARTICLE II- ELIGIBILITY AND PARTICIPATION

 

All Legacy Rohm and Haas Plan Participants who were participants in the Rohm and Haas Non-Qualified Pension Plan as of January 1, 2005 shall be subject to the provisions of this Rider No. 1.

 

ARTICLE III - SERVICE CREDIT

 

A Participant's Benefit Service shall be his Benefit Service as determined under Rider No. 1 of the Retirement Plan.

 

  

31

  

 

ARTICLE IV - BASIC AMOUNT OF NORMAL RETIREMENT PENSION

 

Except as provided in Article VII of this Rider, a Participant's Basic Amount of Normal Retirement Pension as of any Determination Date on or after the Participant's attainment of age 65 shall be one-twelfth of (the greater of A1 or A2-B) x C:

 

A1 equals the lesser of:

 

(i)           50% of the sum of the Participant's Final Average Compensation and Award Program Adjustment; or

 

(ii)           2% of the sum of the Participant's Final Average Compensation and Award Program Adjustment, minus 0.35% of the Participant's Covered Compensation; multiplied by the number of completed years and any fractional parts thereof of Benefit Service; or

 

A2 equals 1.5% of the sum of the Participant's Final Average Compensation and Award Program Adjustment, minus 0.35% of the Participant's Covered Compensation; multiplied by the number of completed years and any fractional parts thereof of Benefit Service up to a maximum of 44 years.

 

B equals the Basic Amount of Normal Retirement Pension Benefits to which the Participant is entitled from the Pension Plan; and

 

C equals the percentage (not to exceed 1.0) determined by dividing the number of months in the 10 year period preceding the Determination Date that the Participant was a level 14 or greater by 60.

 

ARTICLE V - BASIC AMOUNT OF EARLY RETIREMENT PENSION

 

	
5.1.

	
The Basic Amount of Early Retirement Pension shall be computed in accordance with this Article V based on a Participant's Final Average Compensation and Benefit Service as of the Determination Date.

 

	
5.2.

	
Subject to Article VII of this Rider, the Basic Amount of Early Retirement Pension payable to a Participant who experiences an Early Retirement or Special Early Retirement shall be determined as follows:

 

	
  

	
5.2.1.

	
At the sole and absolute discretion of the Executive Compensation Committee of the Board of Directors ("Executive Committee"), the Basic Amount of Early Retirement Pension of a Participant who experiences an Early Retirement based upon a mutual agreement with the Company shall be determined pursuant to Article IV of this Rider and, if the Participant has attained age 60, shall be determined without reduction.  The Executive Committee may base its determinations under this Section 5.2.1 on any factors it deems relevant and shall not be bound, or have its discretion limited or restricted, by past determinations.

 

	
  

	
5.2.2.

	
The Basic Amount of Early Retirement Pension of a Participant who Retires from the Company for reasons other than as described in Section 5.2.1 on or after age 60 shall be one-twelfth of (A - B) x C:

 

A equals 1.5% of the sum of the Participant's Final Average Compensation and his Award Program Adjustment, minus 0.35% of the Participant's Covered Compensation; multiplied by the number of completed years and any fractional parts thereof of Benefit Service up to a maximum of 44 years.  This amount shall be calculated without application of Section 415 or Section 401 (a)(l7) of the Code;

 

B equals the Basic Amount of Normal Retirement Pension Benefits to which the Participant is entitled from the Pension Plan; and

 

C equals the percentage (not to exceed 1.0) determined by dividing the number of months in the 10 year period preceding the Determination Date that the Participant was a level 14 or greater by 60.

 

	
  

	
5.2.3.

	
The Basic Amount of Early Retirement Pension payable to a Participant who Retires from the Company between the ages of 55 and 60 shall be either:

 

  

32

  

 

	
  

	
5.2.3.1.

	
The Basic Amount of Early Retirement Pension determined under Section 5.2.1 or Section 5.2.2, in either case reduced by 12 of one percent (.005) for each month (or fraction thereof) that payment commencement under Article VII of the Standard portion of the Plan precedes his attainment of Age 60; or

 

	
  

	
5.2.3.2.

	
A Participant who retires after March 31, 1997 pursuant to Article H of Rider 1 of the Retirement Plan shall be entitled to:

 

	
  

	
(i)

	
the Basic Amount of the Early Retirement Pension determined under Section 5.2.1 or 5.2.2, in either case without reduction; and

 

	
  

	
(ii)

	
a Social Security Supplemental Benefit of four hundred dollars ($400) per month.  Payments of the Social Security Supplemental Benefit will commence at the time provided in Article VII of the Standard portion of the Plan and continue until the end of the month prior to the month in which the Participant is first eligible to receive a Social Security benefit equal to 80% of the total Social Security benefit he would be eligible to receive upon reaching his Social Security normal retirement age; provided, however, that in no event shall the Social Security Supplemental Benefit be paid after the end of the month coincident with or next preceding the date of the Participant's death.  The Social Security Supplemental Benefit payable pursuant to this Article V shall not be affected by the form of benefit selected pursuant to Article VII of the Standard portion of the Plan except that the Supplemental Benefit shall be payable in an Actuarially Equivalent lump sum if benefits are payable in a lump sum pursuant to Article VII of the Standard portion of the Plan.

 

With respect to any other Participant, the Executive Compensation Committee of the Board of Directors (the "Executive Committee") shall have the sole and absolute discretion to provide the benefits described in this Section 5.2.3.2.  The Executive Committee may base its determinations under this Section 5.2.3.2 on any factors it deems relevant and shall not be bound, or have its discretion in any way limited or restricted, by past determinations.

 

	
  

	
5.2.4.

	
The Basic Amount of Early Retirement Pension of a Participant who experiences a Special Early Retirement shall be the Basic Amount of Early Retirement Pension determined under Section 5.2.2 reduced by 1⁄2 of one percent (.005) for each month (or fraction thereof) that payment commencement under Article VII of the Standard portion of the Plan precedes his attainment of age 60.

 

ARTICLE VI - OTHER RETIREMENT PENSIONS

 

	
6.1.

	
Termination Before Eligibility for Early Retirement.  The amount of Retirement Income of a Participant who Separates from Service before becoming eligible for an Early Retirement shall be calculated in accordance with Article IV above, and then actuarially reduced using the factors found in Table 2 of Appendix A to the Standard portion of the Plan.

 

	
6.2.

	
Disability Retirement.  A Participant who Retires due to a Disability will continue to accrue Benefit Service and Vesting Service until such Participant has attained age 65.  Upon reaching age 65, such Participant will be eligible to receive a benefit under this Rider calculated in accordance with Article IV above.

 

ARTICLE VII – VESTING

 

A Participant shall vest in his percentage of his Basic Amount of Normal or Early Retirement Pension in accordance with this Article VII.  A Participant shall be 100% vested in his Basic Amount of Normal or Early Retirement Pension when he is credited with 60 months of Benefit Service.

 

 

  

33

  

 

TIMING AND FORM OF RETIREMENT INCOME PAYMENT

 

Benefits payable under this Rider No. 1 shall be paid as provided in Article VII of the Standard portion of the Plan, except as provide in this Article VIII.

 

	
8.1.

	
Delayed Effectiveness of Forms of Payment Options.  The forms of payment provided under Article VII of the Standard portion of the Plan shall be effective as of January 1, 2007.  Prior to January 1, 2007, the available forms of payment shall be as described in the Rohm and Haas Non-Qualified Pension Plan as in effect on April 1, 2001.

 

  

34

  

SCHEDULE 1A

 

ROHM AND HAAS COMPANY

 

EARLY RETIREMENT FACTORS

 

 

 

 

  

35

  

SCHEDULE 1B -ACTUARIAL EQUIVALENT VALUES

(Effective January 1, 2005)

 

Actuarial equivalence under the Plan is determined using the factors used for calculating actuarial equivalence under Rider 1 of the Pension Plan.  The current factors are as set forth below.  Any changes to the applicable factors under the Pension Plan shall automatically apply to this Plan and this Appendix 1B shall be updated accordingly.

 

	
1.

	
Single Life Annuity payable on the last day of month coincident with or next following attainment of age 65 converted into Actuarial Equivalent Options other than a Lump Sum:

 

	
Annual Interest Rate

	
Mortality Table

	
7%

	
1984 PBGC Unisex Table

 

	
2.

	
Single Life Annuity payable on the last day of month coincident with or next following attainment of age 65 converted into Actuarial Equivalent Lump Sum payment.

 

	
Annual Interest Rate

	
Mortality Table

	
The applicable interest rate under Section 417(e) of the Code (as determined under the Retirement Plan)

If the resulting interest rate is greater than 7%, then .5% will be subtracted from the interest rate, but in no event shall the adjusted rate be reduced below 7%

	
The applicable mortality table under Section 417(e) of the Code (as determined under the Retirement Plan)

 

 

However, the amount of any lump sum payment paid after December 30, 2008, shall not be less than the Actuarial Equivalent lump sum payment, determined as of the payment date, of the single life annuity payable on the last day of month coincident with or next following attainment of age 65 of the benefits the Participant accrued under the Plan as of December 30, 2008, determined using the following assumptions:

 

	
Annual Interest Rate

	
Mortality Table

	
The lesser of (A) the average of the annual rate of interest on 30 Year Treasury Securities for June, July and August of the Plan Year preceding the Plan Year of distribution or (B) the rate for August of the Plan Year preceding the Plan Year of distribution.  If the resulting interest rate is greater than 7%, then .5% will be subtracted from the interest rate, but in no event shall the adjusted rate be reduced below 7%

	
94 GAR

  

36

  

RIDER NO. 2

SPECIAL PROVISIONS OF THE FORMER MORTON INTERNATIONAL, INC.

EXCESS PENSION PLAN

 

This Rider No. 2 preserves certain provisions of the Morton International, Inc.  Excess Pension Plan as in effect on January 1, 2001 for Legacy Morton Plan Participants.  The provisions of this Rider No. 2 apply only to Legacy Morton Plan Participants and supersede any conflicting provisions of the Standard portion of the Plan.  All capitalized terms used herein, which are not otherwise defined below, shall have the meaning given to them under Article II of the Standard portion of the Plan.

 

ARTICLE I - ELIGIBILITY AND PARTICIPATION

 

All (i) Legacy Morton Plan Participants who were participants in the Morton International, Inc.  Excess Pension Plan as of January 1, 2005, and (ii) Eligible Employees who are Legacy Morton Plan Participants and who meet the requirements of Article III of the Standard shall be subject to the provisions of this Rider No. 2.

 

ARTICLE II - AMOUNT OF BENEFITS

 

	
2.1.

	
General.  If benefits under this Plan and the Retirement Plan (and where applicable, Rider 2 thereof) become payable as of age 65 in the form of a single life annuity, the monthly benefit payable under this Rider to the Participant shall be equal to the difference between the amount in (1) and the amount in (2) where –

 

	
  

	
(1)

	
is the amount of the monthly normal retirement benefit that would have been payable under the Retirement Plan (and where applicable, Rider 2 thereof) if:

 

	
  

	
(A)

	
the limitations of Code section 401(a)(17) were not applied,

 

	
  

	
(B)

	
the limitations under Code section 415 were not applied,

 

	
  

	
(C)

	
amounts deferred under a bonus or incentive compensation plan (without regard to growth amounts) had been taken into account in Earnings under the Retirement Plan (and where applicable, Rider 2 thereof) in the year such amounts would have been paid in the absence of the deferral, and

 

	
  

	
(D)

	
benefit accruals under the Retirement Plan (and where applicable, Rider 2 thereof) were not limited pursuant to IRS Notice 88-131, and,

 

	
  

	
(2)

	
is the amount of the monthly normal retirement benefit payable under the Retirement Plan (and where applicable, Rider 2 thereof).

 

	
2.2

	
Payments at Other Times and Other Forms.  If benefits under the Retirement Plan (and where applicable, Rider 2 thereof) or this Plan become payable at a time other than age 65 or in a form of payment other than a single life annuity, the amount of the benefit payable under this Rider shall be the actuarial equivalent of the amount specified in Section 2.1, computed using the same actuarial factors and assumptions that would be used to compute the benefit payable under the Retirement Plan (and where applicable, Rider 2 thereof) on the date benefits under this Plan are determined.

 

ARTICLE III - FORM OF PAYMENT AND COMMENCEMENT DATE

 

	
3.1.

	
Benefit Commencement on or before December 31, 2006.  The time and form of payment of benefits payable under this Rider that commence on or before December 31, 2006 shall be determined in accordance with this Section 3.1.

 

	
  

	
3.1.1.

	
Form of Payment.  Benefits payable under this Section 3.1 shall be paid in the same manner as the benefits payable under the Retirement Plan (and where applicable, Rider 2 thereof).  If benefits are paid in the form of a lump sum, the payment of the lump sum shall be in full discharge of the Company's obligations under the Plan to the Participant, his spouse, or Beneficiaries.  The actuarial assumptions for computing the lump sum amount shall be those set forth in Appendix B to the Standard.

 

  

37

  

 

	
  

	
3.1.2.

	
Commencement Date.  Benefits payable under this Section 3.1 shall become payable on or about the same date that benefits commence under the Retirement Plan (and where applicable, Rider 2 thereof).

 

	
3.2.

	
Benefit Commencement after December 31, 2006.  The time and form of payment of benefits payable under this Rider that commence after December 31, 2006 shall be determined in accordance with Article VII of the Standard portion of the Plan.  Notwithstanding the foregoing, the forms of payment provided under Article VII of the Standard portion of the Plan shall be effective as of January 1, 2007.  Prior to January 1, 2007, the available forms of payment shall be as described in the Morton International, Inc. Excess Pension Plan as in effect on January 1, 2001.

 

ARTICLE IV - VESTING

 

A Participant shall become vested in the benefit payable under Article II at the same time that he becomes vested under the Retirement Plan (and where applicable, Rider 2 thereof).

 

ARTICLE V - DEATH BENEFITS

 

No death benefit shall be paid under this Rider except as provided in this Article V.  A death benefit shall be payable to a surviving spouse or other designated Beneficiary of the Participant if a death benefit is payable to such person under the Retirement Plan (and where applicable, Rider 2 thereof).  Such death benefit shall be computed using the same factors and assumptions used to compute the applicable death benefit under the Retirement Plan (and where applicable, Rider 2 thereof).  Such death benefit shall be paid at the time and in the form provided under Article VII of the Standard portion of the Plan.

 

  

38ex-1002.htm

 

	 EXHIBIT 10.2
	 
	 

 

Summary Plan Description for:

The Dow Chemical Company

Company-Paid Life Insurance Plan

Employee-Paid Life Insurance Plan

Dependent Life Insurance Plan

(Applicable to Active Salaried Employees and Active Hourly Employees Whose Collective Bargaining Unit has Agreed to this Plan)

 

Amended and Restated:  December 23, 2010 

Effective January 1, 2011 and thereafter until superseded

 

 

This Summary Plan Description (SPD) is updated annually

on the Dow Intranet and supersedes all prior SPD’s.

Copies of this SPD can be found on the Dow Intranet at My HR Connection or by requesting a copy from the Human Resources (HR) Service Center, Employee Development Center, Midland, MI 48674, telephone 1-877-623-8079 or 1-989-638-8757.  Summaries of modifications may also be published from time to time in Dow’s Newsline publication or by separate letter.

Overview

This booklet is the Summary Plan Description (SPD) for The Dow Chemical Company Group Life Insurance Program’s Company-Paid Life Insurance Plan (“Company-Paid Life Insurance Plan”).  It is also the SPD for The Dow Chemical Company Employee-Paid and Dependent Life Insurance Program’s Employee-Paid Life Insurance Plan (“Employee-Paid Life Insurance Plan”) and Dependent Life Insurance Plan (“Dependent Life Insurance Plan”).  These plans are collectively referred to in this SPD as “Plans”.  Individually, each plan may be referred to as “Plan”, in its respective Chapter of this SPD.  References to “Dow” refer collectively to The Dow Chemical Company and its subsidiaries and affiliates authorized to participate in the Plans.  The Dow Chemical Company Group Life Insurance Program and The Dow Chemical Company Employee-Paid and Dependent Life Insurance Program are collectively referred to as the “Programs”.

 

Chapter One applies to the Company-Paid Life Insurance Plan.  The Company-Paid Life Insurance Plan is part of The Dow Chemical Company Group Life Insurance Program (ERISA Plan #507).  It provides group term life insurance coverage underwritten by Metropolitan Life Insurance Company (“MetLife”).  The premium is paid by Dow.  It provides automatic coverage for eligible Employees.

 

Chapter Two applies to the Employee-Paid Life Insurance Plan.  It is part of The Dow Chemical Company Employee-Paid Life Insurance and Dependent Life Insurance Program (ERISA Plan #515).  It provides group term life insurance coverage underwritten by MetLife.  You must enroll and pay the premiums for this coverage to receive it.

 

Chapter Three applies to the Dependent Life Insurance Plan.  It is part of The Dow Chemical Company Employee-Paid and Dependent Life Insurance Program (ERISA Plan #515).  It provides group term life insurance coverage underwritten by MetLife.  You must enroll and pay the premiums for this coverage to receive it.

 

Words that are capitalized are either defined in this SPD or the applicable Plan Document. The applicable Plan Document for the Company-Paid Life Insurance Plan is The Dow Chemical Company Group Life Insurance Program Plan Document.  The applicable Plan Document for the Employee-Paid Life Insurance and Dependent Life Insurance Plans is The Dow Chemical Company Employee-Paid Life Insurance and Dependent Life Insurance Program Plan Document.  The Plan Documents are available by requesting from the applicable Plan Administrator listed in the ERISA Information section of this SPD.  In case of conflict between this SPD and the applicable Plan Document, the Plan Document will govern.

  

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References to “Participating Employer” refer to The Dow Chemical Company or any other corporation or business entity The Dow Chemical Company authorizes to participate in the Plans with respect to its Employees.  The terms “Dow” and “Participating Employers” have the same meaning, and may be used interchangeably in this SPD.   The term “Employee” means a person who:

	
  

	
a.

	
is employed by a Participating Employer to perform personal services in an employer-employee relationship which is subject to taxation under the Federal Insurance Contribution Act or similar federal statute; and

	
  

	
b.

	
receives payment for services performed for the Participating Employer directly from the Company’s U.S. Payroll Department, or another Participating Employer’s U.S. Payroll Department; and

	
  

	
c.

	
is either a Salaried individual who is classified by the Participating Employer as having “regular full-time status” or “less-than-full-time status”, or a Bargained-for individual who is classified by the Participating Employer as having “regular full-time active status”, and

	
  

	
d.

	
if Localized, is Localized in the U.S., and

	
  

	
e.

	
if on an international assignment, is either a U.S. citizen or Localized in the U.S.

 

 

The definition of “Employee” does not include an individual who performs services for the benefit of a Participating Employer if his compensation is paid by an entity or source other than the Company’s U.S. Payroll Department or another Participating Employer’s U.S. payroll Department.  Further, the definition of “Employee” does not include any individual who is characterized by the Participating Employer as an independent contractor, contingent worker, consultant, contractor, or similar term.  These individuals are not “Employees” (with a capital “E”) for purposes of the Plan even if such an individual is determined by a court or regulatory agency to be a “common law employee” of a Participating Employer.

 

 

 

	
 The Company reserves the right to amend, modify and terminate

the Plans at any time at its sole discretion.

 

 

  

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Chapter One

Company-Paid Life Insurance

Plan Description

Except for Michigan Operations Hourly Employees who were not Actively at Work on January 1, 2008, the Company-Paid Life Insurance Plan provides coverage of one times (1X) your base annual salary rounded up to the next $1,000 for Salaried Employees and Hourly Employees whose collective bargaining unit has agreed to this plan.  Michigan Operations Hourly Employees who were not Actively at Work on January 1, 2008 but continue to be on the payroll (for example due to a paid medical leave of absence) and were covered at 1/2X prior to January 1, 2008, may continue 1/2X coverage as long as they continue to be on the payroll.  If they return to work, their coverage will increase to 1X when they are Actively at Work.   MetLife is the named fiduciary for making decisions as to whether a Claim for Benefits is payable.

As of January 1, 2005, the following plans have been merged into the Company-Paid Life Insurance Plan: The Dow Chemical Company Group Life Insurance Program’s Michigan Hourly Company-Paid Life Insurance Plan; The Dow Chemical Company Group Life Insurance Program’s Hampshire Hourly Company-Paid Life Insurance Plan; and The Dow Chemical Company Group Life Insurance Program’s ANGUS Hourly Company-Paid Life Insurance Plan.  Such plans no longer exist as separate plans, but are now a part of The Dow Chemical Company Group Life Insurance Program’s Company-Paid Life Insurance Plan.

The Company-Paid Life Insurance Plan is referred to in Chapter One as the “Plan”.

Eligibility

 

Salaried Employees

 

Salaried Employees of a Participating Employer with regular, active, Full-Time or Less-Than-Full-Time status are eligible and are automatically covered under this Plan1, except as follows:

 

	
  

	
1.

	
Employees enrolled in the Key Employee Insurance Program (“KEIP”) are not eligible for active Employee or Retiree Company-Paid Life Insurance coverage, except that on the later of “program completion date” or “retirement” (as those terms are defined in KEIP), if the Employee would otherwise have been eligible for coverage under the Company-Paid Life Insurance Plan, the Employee may resume eligibility for the Plan; and

 

	
  

	
2.

	
Employees who were enrolled in The Dow Chemical Company Executive Split Dollar Life Insurance Plan (“Dow Split Dollar”) on September 30, 2002, who have not waived their rights under The Dow Chemical Company Executive Split Dollar Life Insurance Agreement, are not eligible for coverage under the Company-Paid Life Insurance Plan.

 

 

Hourly Employees

 

Eligibility of Hourly Employees depends on whether the applicable collective bargaining unit and the Participating Employer have agreed to this Plan.   With respect to a collective bargaining agreement that specifically addresses which Employees are eligible or not eligible for this Plan, the terms of such collective bargaining agreement shall govern.   If the terms of the collective bargaining agreement specify that Hourly Employees shall be provided this Plan, but does not specifically address the category of Employees that are eligible or not eligible, then the Plan will provide eligibility to regular, active Employees with Full Time status who are members of the collective bargaining unit.

  

1 If you were enrolled in The Dow Chemical Company Executive Split Dollar Life Insurance Plan on September 30, 2002, and you signed a waiver of all your rights under The Dow Chemical Company Executive Split Dollar Life Insurance Agreement between you and The Dow Chemical Company, you are eligible until you no longer have active Employee status, or until you elect to waive coverage.  In addition, if you were enrolled in the Union Carbide Corporation Executive Life Insurance Plan (“UCC Executive Life”) on October 31, 2002, and had active Employee status on the date that your Agreement and Collateral Assignment between you and Union Carbide Corporation were terminated, you are eligible until you no longer have active Employee status, or until you elect to waive coverage.   Once coverage is waived, you will not be allowed to re-enroll in the future.  In the BenefitConnect benefits enrollment system, the coverage described in this footnote is referred to as “Executive Life Insurance” or “Exec Life”. 

  

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Employees on a Leave of Absence

 

Eligibility for benefits under the Plan may continue during certain leaves of absences approved by the Participating Employer such as under the Company’s Family Leave Policy or Medical Leave Policy.   The benefits under the Plan shall be administered consistent with the terms of such approved leaves of absences.

 

 

Disabled Employees

If you are being paid a benefit from The Dow Chemical Company Long Term Disability Income Protection Plan (“LTD”), The Dow Chemical Company Michigan Hourly Contract Disability Plan, The Dow Chemical Company Texas Operations Total and Permanent Disability Plan, or the Dow AgroSciences Long Term Disability Insurance Plan you may be eligible under the Plan. See the Special Coverage for Certain Disabled Persons section of this SPD.

If you are a Rohm and Haas Company Employee2 who has been approved for disability payments under the Rohm and Haas Company Health and Welfare Plan’s Short Term Disability Program, you are eligible for life insurance coverage until you are no longer eligible to receive disability payments under the Rohm and Haas Company Health and Welfare Plan’s Short Term Disability Program.  See the Special Coverage for Certain Disabled Persons section of this SPD.

If you have been approved for disability payments under the Rohm and Haas Company Health and Welfare Plan’s Long Term Disability Program, or if you have been approved for Disability Retirement under the Morton International, Inc. Pension Plan for Collectively-Bargained Employees or under Article G of Rider No. 2 of the Rohm and Haas Company Retirement Plan, you are eligible for life insurance coverage until you are no longer eligible to receive disability payments under the Rohm and Haas Company Health and Welfare Plan’s Long Term Disability Program, or until you no longer qualify for Disability Retirement under the Morton International, Inc. Pension Plan for Collectively-Bargained Employees or under Article G of Rider No. 2 of the Rohm and Haas Company Retirement Plan.  See the Special Coverage for Certain Disabled Persons section of this SPD.

 

 

Eligibility Determinations

The Initial Claims Reviewer determines eligibility.  The Initial Claims Reviewer is a fiduciary to the Plan and has the full discretion to interpret the provisions of the Plan and to make findings of fact.  If you want to file a Claim for a Determination of Eligibility because you are not sure whether you are eligible to participate in the Plan, or have been told that you are not, see the Claims Procedures Appendix of this SPD.

 

Enrollment

 

Completing an enrollment form is necessary only to name your beneficiary.  You may waive coverage.  If you want to waive coverage, you must provide written notification to the U.S. Benefits Center.  If you waive coverage, you waive coverage permanently.  You may not re-enroll in this Plan at any time in the future.

 

Employee Contribution

 

Dow provides Company-Paid Life Insurance at no cost to you.

 

 

Amount of Coverage.

 

Maximum Coverage

 

The maximum amount of coverage available is $1.5 million3.

  

2 If you are Morton Salt Employee and you were approved for a Short-Term Disability benefit under the Rohm and Haas Company Health and Welfare Plan prior to October 1, 2009, this paragraph does not apply to you.  You are not eligible for coverage under The Dow Chemical Company Group Life Insurance Program and The Dow Chemical Employee-Paid and Dependent Life Insurance Program. Note that Morton Salt was no longer a part of Dow’s controlled group as of October 1, 2009.

  

3 This maximum is waived if you are an Employee who was enrolled in The Dow Chemical Company Executive Split Dollar Life Insurance Plan on September 30, 2002, and you signed a waiver of all your rights under The Dow Chemical Company Executive Split Dollar Life Insurance Agreement between you and The Dow Chemical Company.  This maximum is also waived if you were enrolled in the Union Carbide Corporation Executive Life Insurance Plan on October 31, 2002, and you were an active Employee on the date that your Agreement and Collateral Assignment between you and Union Carbide Corporation were terminated.

  

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Salaried Employees and Hourly Employees Whose Collective Bargaining Unit Has Agreed to this Plan

Except for Michigan Operations Hourly Employees who were not Actively at Work on January 1, 2008, the Plan provides coverage of one times (1X) your base annual salary rounded up to the next $1,000 for Salaried Employees and Hourly Employees whose collective bargaining unit has agreed to this plan.

Michigan Operations Hourly Employees who were not Actively at Work on January 1, 2008 but continue to be on the payroll (for example due to a paid medical leave of absence) and were covered at 1/2X prior to January 1, 2008, may continue 1/2X coverage as long as they continue to be on the payroll.  If they return to work, their coverage will increase to 1X when they are Actively at Work.

Your coverage automatically is adjusted as your base salary changes, provided you are Actively at Work.  If you are Less-Than-Full-Time, your 1X coverage is based on your Full-Time base annual salary, and coverage is automatically adjusted as your base salary changes.  Whether you are Full-Time or Less-Than-Full-Time, if you are not Actively at Work, any increase to your life insurance will not be effective until you return to work.

 

Union Carbide Employees

 

If you are a Union Carbide employee, your benefit will be determined using your annual pay at Union Carbide as of December 31, 2001, as determined under the provisions of the Union Carbide Basic Life Insurance Plan until your annual base salary calculated under the normal provisions of the Plan exceeds such amount.  At that time, the Plan will no longer retain the December 31, 2001 Union Carbide annual pay information and will look solely to the annual base salary calculated under the normal provisions of the Plan to determine the amount of your coverage.

 

 

Special Coverage for Certain Disabled Persons

 

 

The Dow Chemical Company Long Term Disability Income Protection Plan (“LTD”)

Effective January 1, 2006, if your date of Full Disability (as defined under LTD) is on or after January 1, 2006, you are eligible for coverage when your LTD benefit payments begin.  The following applies to you:

If you have less than ten (10) years of service under the Dow Employees’ Pension Plan (“DEPP”) or the Union Carbide Employees’ Pension Plan (“UCEPP”), you are eligible for up to either 12 months or 24 months of company paid life insurance coverage.  Coverage ends prior to the expiration of the 12 month or 24 month period if you no longer qualify for LTD status.  The 12 month period applies if you have less than one (1) year of service under DEPP or UCEPP.  The 24 month period applies if you have more than one (1) year of service, but less than ten (10) years of service under DEPP or UCEPP.   Currently, if you have ten (10) or more years of service you are eligible for coverage until you are no longer eligible to receive payments from LTD.

The amount of coverage is the same as the amount of coverage you had on the date you were last Actively at Work.  Currently, the Company pays the cost of this coverage.

If your date of Full Disability (as defined under LTD) is prior to January 1, 2006, you are eligible for coverage when your LTD benefit payments begin4.  The following applies to you:

You are eligible for the same amount of coverage you had on the date you were last Actively at Work.  Currently, the Company pays the cost of this coverage.  Currently, coverage continues until you are no longer eligible to receive payments from LTD.

You are also eligible for an additional amount of coverage, which is determined by the amount of Employee-Paid Life coverage you were enrolled in as an active Employee immediately prior to being approved to receive LTD payments, but not to exceed 1X (For example, if you were enrolled for 6X as an active Employee, your coverage would be reduced to 1X).  Currently, the Company pays the cost of this coverage.  Currently, coverage continues until you are no longer eligible to receive payments from LTD.

  

4 This also applies to those who were disabled prior to January 1, 2006, and were approved to receive benefit payments for such disability under the Dow AgroSciences Long Term Disability Insurance Plan.

  

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For salaried employees, base annual salary is used to calculate the life insurance amount.  For bargained-for employees, annual pay calculated using your base hourly rate is used.

 

Texas Total and Permanent Disability

 

If you were enrolled in the Texas Operations Hourly Total and Permanent Disability Plan (T&P Plan) and you were deemed to be “totally and permanently disabled” by the plan administrator of that plan, and it was determined that you are eligible to be in benefits pay status by the plan administrator of that plan, you are eligible for coverage under the Company-Paid Life Insurance Plan equal to the amount of coverage you were enrolled in under the Texas Operations Hourly Optional Life Insurance Contributory Plan (Contributory Life) at the time you became totally and permanently disabled.  Coverage ends the earlier of: 1) you are determined to no longer be “totally & permanently disabled” by the plan administrator of the T&P Plan, or 2) you reach age 65.

 

 

Contract Disability Participants

 

If you have been determined to be “totally and permanently disabled” by the claims administrator of The Dow Chemical Company Michigan Hourly Contract Disability Plan (“Contract Disability Plan”), and are receiving benefit payments from that plan, the same coverage you had as an active Employee will continue until you are age 65.  Eligibility for coverage ends earlier if you no longer are eligible for benefit payments under the Contract Disability Plan.  If you were Actively at Work at age 65 or older and subsequently became approved for benefits by the Contract Disability plan administrator, your coverage will be determined by applying the appropriate percentage from the following table to your base annual hourly rate effective the day before you qualified to receive benefit payments under the Contract Disability Plan, with a minimum of $5,000.

 

 

	
 Your Age

65 

66

67 

68

	
 Percentage

50 percent

30 percent

10 percent

 5   percent

 

                                                                                                                                                     

On and after your 70th birthday, the amount of your Retiree Company-Paid Life Insurance benefits will be $5,000.  Currently, the Company pays the cost of this coverage.

 

Rohm and Haas Company Disability Participants

If you are a Rohm and Haas Company Employee5 who has been approved for disability payments under the Rohm and Haas Company Health and Welfare Plan’s Short Term Disability Program, you are eligible for life insurance coverage at the same level of coverage you had immediately prior to your approval for disability payments  Such coverage continues at no cost to you until you are no longer eligible to receive disability payments under the Rohm and Haas Company Health and Welfare Plan’s Disability Program.  

If you have been approved for disability payments under the Rohm and Haas Company Health and Welfare Plan’s Long-Term Disability Program, you are eligible for life insurance coverage at the same level of coverage you had immediately prior to your approval for disability payments, if your qualifying disability was incurred prior to January 1, 2010 and you continue to receive disability payments under the Rohm and Haas Company Health and Welfare Plan’s Disability Program.  Such coverage continues at no cost to you until you are no longer eligible to receive disability payments from that Program.  

If you have been approved for Disability Retirement under the Morton International, Inc. Pension Plan for Collectively-Bargained Employees or under Article G of Rider No. 2 of the Rohm and Haas Company Retirement Plan, you are eligible for life insurance coverage at the same level of coverage you had immediately prior to your approval for Disability Retirement.  Such coverage continues at no cost to you until you no longer qualify for Disability Retirement under the Morton International, Inc. Pension Plan for Collectively-Bargained Employees or under Article G of Rider No. 2 of the Rohm and Haas Company Retirement Plan.  

  

5 If you are  Morton Salt Employee and you were approved for a Short-Term Disability benefit under the Rohm and Haas Company Health and Welfare Plan prior to October 1, 2009, this paragraph does not apply to you.  You are not eligible for coverage under The Dow Chemical Company Group Life Insurance Program and The Dow Chemical Employee-Paid and Dependent Life Insurance Program.

  

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Effective Dates of Coverage

Beginning. Your coverage begins on your first day of active employment as an Employee of a Participating Employer, unless you were a former participant of The Dow Chemical Company Executive Split Dollar Life Insurance Plan or the Union Carbide Corporation Executive Life Insurance Plan as described above in the Eligibility section, in which case your coverage begins the first day of the month following the termination of your participation in such executive life insurance plan.

Ending.

Your Company-Paid Life Insurance coverage ends on the earlier of:

●      the date the Group Policy ends;

●      the date you no longer meet the eligibility requirements of the Plan; or

●      the date your employment ends.

Porting Coverage to a Term Life Policy

If your Company-Paid Life Insurance coverage ends because your employment ends and you are not eligible for Retiree Company-Paid Life Insurance, your coverage may be continued on a direct bill basis with MetLife through the portability feature. This feature allows employees to continue their Group Term Life coverage under a separate group policy without completing and submitting a statement of health form.  Rates for this coverage are different from the active plan rates and the employee must port a minimum of $20,000 to exercise this option. You have 31 days from the date your coverage ends to apply for Portability. You may continue the same or lesser amount of coverage. If you are unable to continue your entire life insurance amount through Portability, you may apply for Conversion of the balance. Contact MetLife at 1-866-492-6983 if you have any questions or want to apply for Portability.

 

 

Converting to an Individual Policy

If your Company-Paid Life Insurance coverage is reduced due to retirement, the amount of coverage you lost may be converted to an individual non-term policy through MetLife.  The maximum amount of insurance that may be elected for the new policy is the amount of Company- Paid Life Insurance you lost under the Company-Paid Life Insurance Plan.

If your Company-Paid Life Insurance coverage ends because your employment ends, your coverage may be converted to an individual non-term policy through MetLife.  The maximum amount of insurance that may be elected for the new policy is the amount of Company-Paid Life Insurance in effect for you under the Company-Paid Life Insurance Plan on the date your employment ends.

If your Company-Paid Life Insurance coverage ends because Dow has cancelled the Company-Paid Life Insurance coverage under the MetLife group life insurance policy, or Dow has amended the Company-Paid Life Insurance Plan to exclude coverage for your work group, you may convert your Company-Paid Life Insurance coverage to an individual non-term MetLife policy; provided you have been covered under the Company-Paid Life Insurance Plan for at least 5 years immediately prior to losing coverage under the Company-Paid Life Insurance Plan.  The amount you may convert is limited to the lesser of:

	
  

	
·

	
the amount of  Company-Paid Life Insurance for you that ends under the Group Policy less the amount of life insurance for which you become eligible under any group policy within 31 days after the date insurance ends under the Group Policy; or

·      $2,000.

You must file a conversion application with MetLife within 31 days of the date your Dow coverage is lost or reduced.  Contact the Dow HR Service Center to obtain a form for converting your coverage.   Once you have obtained the form, contact the MetLife Conversion Group at 1-877-275-6387 to file your form, or to obtain further information. You are responsible for initiating the conversion process within the appropriate timeframes.  

The cost of this individual coverage will probably be significantly higher than your group plan.  Although not required, completing and submitting a statement of health form may help reduce your cost.

  

45

  

Reporting Imputed Income

The Internal Revenue Code requires that the cost of Company-Paid Life Insurance in excess of $50,000 be reported as taxable income (“imputed income”).  This imputed income will be reported on your W-2 Form in addition to your other taxable income.  Former participants of The Dow Chemical Company Split Dollar Life Insurance Plan and the Union Carbide Corporation Executive Life Insurance Plan are not eligible for the $50,000 exclusion.

The cost of your Company-Paid Life Insurance in excess of $50,000 is based on a Uniform Premium Table established by the federal government.

If your Company Paid Life coverage is greater than $50,000, and you want to decrease the amount of coverage from 1X to $50,000, you may elect to do so by contacting the HR Service Center.  Once coverage is reduced, it may not be reinstated.

Naming Your Beneficiary

 

Effective March 1, 2008, as communicated by the Plan Administrator, MetLife became the record keeper for the Program’s beneficiary records.  Beneficiary information must be registered with MetLife at www.MetLife.com/MyBenefits, or by mailing the appropriate forms to the MetLife Recordkeeping Center.  Beneficiary information previously recorded at the Dow Benefits Center has not been transferred to MetLife.  If you fail to name a beneficiary, MetLife may determine the beneficiary to be one or more of the following who survive you:

	
  

	
·

	
Your Spouse or Domestic Partner; or

	
  

	
·

	
Your children; or

	
  

	
·

	
Your parent(s); or

	
  

	
·

	
Your sibling(s).

If you fail to name a beneficiary, instead of making payment to any of the above, MetLife may pay your estate.  Any payment made by MetLife in good faith will discharge the Plan’s and MetLife’s liability to the extent of such payment.

If you wish to change your beneficiary designation, or you need to register for the first time, you can do so via the Internet at www.MetLife.com/MyBenefits, or the Dow Intranet at My HR Connection.  If you prefer, you can request forms by calling MetLife Customer Service toll-free at (866) 492-6983, Monday – Friday, 8:00 am – 11:00 pm (ET).

Benefit Payments

 

Payment Options. In the event of your death, your beneficiary should contact the HR Service Center. The beneficiary on record must complete and sign a claim form to receive benefits, and a certified death certificate must be provided to MetLife to disburse the life insurance proceeds. To file a Claim for a Plan Benefit, see Claims Procedures Appendix of this SPD.

Funding

 

Dow pays the entire premium for the Company-Paid Life Insurance Plan.  MetLife pays the benefits under an insurance policy.  MetLife may combine the experience for the policy with other policies held by Dow.  This means that the costs of these coverages may be determined on a combined basis, and the costs accumulated from year to year.  Favorable experience under one or more coverages in a particular year may offset unfavorable experience on other coverages in the same year or offset unfavorable experience of coverages in prior years.  Policy dividends declared by MetLife for the Company-Paid Life Insurance Plan are used to reduce Dow’s cost for the coverage in the same and prior years.

Accelerated Benefit Option (ABO)

 

Under the Accelerated Benefit Option (ABO), if you have been diagnosed as terminally ill with 12 months or less to live, you may be eligible to receive up to 80% of your Company-Paid Life Insurance and Employee-Paid Life Insurance benefits before death if certain requirements are met.  Having access to life insurance proceeds at this important time could help ease financial and emotional burdens.  In order to apply for ABO, you must be covered for at least $10,000 from your Company-Paid Life Insurance and/or Employee-Paid Life Insurance.  You may receive an accelerated benefit of up to 80 percent (minimum $5,000 and maximum $500,000) of your Company-Paid Life Insurance and/or Employee-Paid Life Insurance benefit.   An accelerated benefit is payable in a lump sum and can be elected only once.  The death benefit will be reduced by

  

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the amount of accelerated benefit paid.  Accelerated benefits are not permitted if you have assigned your life insurance benefit to another individual or to a trust.

The accelerated life insurance benefits are intended to qualify for favorable tax treatment under the Internal Revenue Code of 1986, as amended.  If the accelerated benefits qualify for such favorable tax treatment, the benefits will be excludable from your income and not subject to federal taxation.  Payment of the accelerated benefit will be subject to state taxes and regulations.  Tax laws relating to accelerated benefits are complex.  You are advised to consult with a qualified tax advisor.

Receipt of accelerated benefits may affect your eligibility, or that of your spouse/domestic partner or your family, for public assistance programs such as medical assistance (Medicaid), Aid to Families and Dependent Children (AFDC), Supplemental Security Income (SSI), and drug assistance programs.  You are advised to consult with social services agencies concerning the effect receipt of accelerated benefits will have on public assistance eligibility for you, your spouse/domestic partner or your family.  In the event your employment status changes in the future, and your life insurance coverage ends or is reduced, the amount of coverage you may be eligible to convert or port will be reduced by the amount of the accelerated benefit received.

If you would like to apply for the Accelerated Benefit Option, a claim form can be obtained from the HR Service Center at 1-877-623-8079 and must be completed and returned for evaluation and approval by MetLife.

Your Rights

 

You have certain rights under the Plan and are entitled to certain information by law.  Be sure to review the Filing a Claim section, Appealing a Denial of Claims section, Fraud Against the Plan section, Grievance Procedure section, Your Legal Rights section, ERISA Enforcement section, Welfare Benefits section, The Company’s Right to Amend, Modify, and Terminate the Plans section, Disposition of Plan Assets if the Plan is Terminated section, For More Information section, Important Note section, and ERISA Information section at the end of this SPD.

  

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Chapter Two

Employee-Paid Life Insurance

Plan Description

 

Under the Employee-Paid Life Insurance Plan, you may select the amount of your coverage in multiples of one-half times (1/2X) your base annual salary up eight times (8X) your base annual pay.  The Employee-Paid Life Insurance Plan is a group term life insurance plan.  The benefits are insured by a group term life insurance policy underwritten by Metropolitan Life Insurance Company (MetLife).  MetLife pays the benefits under the Plan.  In addition, MetLife is the named fiduciary for making decisions as to whether a Claim for Benefits is payable.

As of January 1, 2005, the following plans have been merged into the Employee-Paid Life Insurance Plan:  Hampshire Chemical Corporation Hourly Optional Group Life Insurance Program’s Employee-Paid Life Insurance Plan; ANGUS Chemical Company Hourly Optional Group Life Insurance Program’s Employee-Paid Life Insurance Plan.   Such plans no longer exist as separate plans, but are now a part of the Employee-Paid Life Insurance Plan.  As of January 1, 2008, the Michigan Hourly Optional Group Life Insurance Program’s Employee-Paid Life Insurance Plan has been merged into the Employee-Paid Life Insurance Plan. The Employee-Paid Life Insurance Plan is referred to in Chapter Two as the “Plan”.

Eligibility

 

Salaried Employees

 

Salaried Employees of a Participating Employer with regular, active, Full-Time or Less-Than-Full-Time status are eligible.

 

Hourly Employees

 

Eligibility of Hourly Employees depends on whether the applicable collective bargaining unit and the Participating Employer have agreed to this Plan.   With respect to a collective bargaining agreement that specifically addresses which Employees are eligible or not eligible for this Plan, the terms of such collective bargaining agreement shall govern.   If the terms of the collective bargaining agreement specify that Hourly Employees shall be provided this Plan, but does not specifically address the category of Employees that are eligible or not eligible, then the Plan will provide eligibility to regular, active Employees with Full Time status who are members of the collective bargaining unit.

 

Employees on a Leave of Absence

 

Eligibility for benefits under the Plan may continue during certain leaves of absences approved by the Participating Employer such as under the Company’s Family Leave Policy or Medical Leave Policy.   The benefits under the Plan shall be administered consistent with the terms of such approved leaves of absences.

 

Disabled Employees

 

If you are being paid a benefit from The Dow Chemical Company Long Term Disability Income Protection Plan (“LTD”) or the Dow AgroSciences Long Term Disability Insurance Plan you may be eligible under the Plan. See the Special Employee Paid Coverage for Certain Disabled Persons section of this SPD.

If you are a Rohm and Haas Company Employee6 who has been approved for disability payments under the Rohm and Haas Company Health and Welfare Plan’s Short Term Disability Program, you are eligible for the same amount of supplemental or employee-paid coverage you had immediately prior to your approval for disability payments, until you are no longer eligible to receive disability payments under the Rohm and Haas Company Health and Welfare Plan’s Short Term Disability Program.  You must continue making any required contributions in order to keep your coverage in effect.  See the Special Employee Paid Coverage for Certain Disabled Persons section of this SPD.

If you are a Rohm and Haas Company Employee who has been approved for disability payments under the Rohm and Haas Company Health and Welfare Plan’s Long Term Disability Program, you are eligible for the same amount of supplemental or

  

6 If you are a Morton Salt Employee and you were approved for a Short-Term Disability benefit under the Rohm and Haas Company Health and Welfare Plan prior to October 1, 2009, this paragraph does not apply to you.  You are not eligible for coverage under The Dow Chemical Company Group Life Insurance Program and The Dow Chemical Employee-Paid and Dependent Life Insurance Program.

  

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employee-paid coverage you had immediately prior to your approval for disability payments, until you are no longer eligible to receive disability payments under the Rohm and Haas Company Health and Welfare Plan’s Long Term Disability Program.  You must continue making any required contributions in order to keep your coverage in effect.  See the Special Employee Paid Coverage for Certain Disabled Persons section of this SPD.

 

Eligibility Determinations

 

The applicable Claims Administrator determines eligibility.  The Claims Administrator is a fiduciary to the Plan and has the full discretion to interpret the provisions of the Plan and to make findings of fact.  If you want to file a Claim for a Determination of Eligibility because you are not sure whether you are eligible to participate in the Plan, or have been told that you are not, see the Claims Procedures Appendix of this SPD.

Enrollment

 

To obtain Employee-Paid Life Insurance coverage, enroll during open enrollment or complete an enrollment form, available from the HR Service Center or the Dow Intranet. You may enroll:

	
•

	
On or before your employment date, with coverage to begin on your first day of active employment if you provide a copy of your birth certificate or other proof of your age that the Plan Administrator deems appropriate.   If you do not provide proof of your age that is satisfactory to the Plan Administrator within the time required by the Plan Administrator, you will not be covered.

	
•

	
Within 90 days after your first day of active employment with coverage to begin on your enrollment date if you provide a copy of your birth certificate or other proof of your age that the Plan Administrator deems appropriate.  If you do not provide proof of your age that is satisfactory to the Plan Administrator within the time required by the Plan Administrator, you will not be covered.

	
•

	
Within 90 days of a Change-in-Status, provided you are Actively at Work. If your enrollment form and proof of Change-in-Status and proof of age is received by the Plan Administrator within 31 days of the Change-in-Status event, the change will become effective as of the date of the event.  If the enrollment form and proof of Change-in-Status and proof of age is received by the Plan Administrator between 32 days to 90 days after the Change-in-Status of event, the change will become effective on the date that the form is processed by the Plan Administrator.  Coverage changes become effective only if you are Actively at Work.  If you do not provide the requisite proofs that are satisfactory to the Plan Administrator within the time required by the Plan Administrator, you will not be covered.

	
•

	
During the open enrollment period, you will be allowed to increase your coverage by 1 increment (one-half times (1/2X) base annual salary)7 provided you are Actively at Work on the January 1 following the open enrollment period and you do not exceed the amount you are eligible to enroll in.   If you are not Actively at Work on the January 1 following the open enrollment period, any increase to your life insurance will not be effective until you return to Active Work.

	
•

	
At any other time you are Actively at Work, by completing and submitting a statement of health form, with coverage to begin on the date that MetLife accepts your statement of health form.  MetLife will pay for the fee of a paramedical exam, if requested by MetLife, with no cost to the employee/applicant when a MetLife physician is used.

Failure to provide the prerequisite proofs will result in cancellation of coverage, including retroactive cancellation, and may require you to reimburse the Plan for any benefits paid by the Plan.  The Plan Administrator may request proof of your age at any time.

  

7 If you are employed by Rohm and Haas Company or one of its subsidiaries that is a Participating Employer, for open enrollment for the 2010 Plan Year, you may enroll in the amount of coverage you had under the Rohm and Haas Supplemental Life Insurance Program as of December 31, 2009 without providing a statement of health.  If you were enrolled in the Rohm and Haas Supplemental Life Insurance Program for less than 3X your annual salary, or you were not enrolled in that plan at all, for open enrollment for the 2010 Plan Year only, you may enroll for up to 3X base annual salary without a statement of health.  If you were enrolled in the Rohm and Haas Plan for 3X or more, you may increase your coverage by 1⁄2 X during open enrollment without providing a statement of health.  If you want to increase by more than 1⁄2 X, then you must provide a statement of health that is approved by MetLife.

  

49

  

 

Change-in-Status

 

A “change in status” is an event listed in one of the bullets below:

 

	
  

	
·

	
Events that change your legal marital status, including Marriage, Domestic Partnership, death of a Spouse/Domestic Partner, divorce or annulment or similar event with respect to a Domestic Partnership.

	
  

	
·

	
Birth, adoption, placement for adoption or death of Dependent.

	
  

	
·

	
A termination or commencement of employment by you, your Spouse/Domestic Partner or Dependent.

	
  

	
·

	
A reduction or increase in hours of employment by the Employee, Spouse/Domestic Partner or Dependent.

	
  

	
·

	
Dependent satisfies or ceases to satisfy the requirements for unmarried Dependents.

	
  

	
·

	
A change in the place of residence or work for you, your Spouse/Domestic Partner or Dependent.

Employee Contribution

 

Your contribution, made through post tax payroll deductions, is based on your annual base salary.  In addition, your contribution is based on your age and whether you are a “non-tobacco-user”.  As your age and salary change, your deductions will be automatically adjusted.  You are considered a “non tobacco-user” by the Plan if you have not used a tobacco product in the last 12 months.  If you quit using tobacco, you are considered a “non-tobacco-user” as of the first day of the month after you complete 12 non-tobacco-using months.  If you are a tobacco user, you are considered a tobacco user as of the first day you use tobacco.  Administratively, you will not be adjusted to tobacco user deductions until the first of the month following the tobacco use.   A false or out of date statement regarding tobacco use may result in benefits not being paid.

Current rates are listed in your open enrollment brochure.  These costs are reviewed and revised periodically.

If you are on a leave of absence approved by the Participating Employer that provides eligibility under this Plan, the Plan Administrator has the full discretion to make special administrative arrangements as are necessary, such as deferring Employee contributions on a temporary basis during the leave of absence, and requiring the Employee to repay premiums when the Employee returns to work, or any other arrangements the Plan Administrator deems appropriate.

If the last payroll period for a Plan Year occurs partly during a current Plan Year and partly during the next Plan Year, the Plan Administrator has the full and complete discretion to modify the Participant contributions in any way that the Plan Administrator deems administratively efficient, including modifying the Participant contributions for the last payroll period without the Participant’s consent.

Amount of Coverage

Salaried Employees and Hourly Employees of Applicable Collective Bargaining Groups (Not applicable to Long Term Disability Participants)

You may purchase coverage in increments equal to one-half times (1/2X) your annual base salary, rounded up to the next $1,000.  The maximum coverage allowable is equal to eight times (8X) your annual salary up to a $1.5 million limit8.  If you are Less-Than-Full-Time, your coverage is based on your Full-Time base annual salary.  Your coverage automatically is adjusted as your base salary changes, provided you are Actively at Work ,  Whether you are Full-Time or Less-Than-Full-Time, if you are not Actively at Work, any increase to your life insurance will not be effective until you return to work.  If you are a Union Carbide employee, your benefit will be determined using your annual pay at Union Carbide as of December 31, 2001, as determined under the provisions of the Union Carbide Basic Life Insurance Plan until your annual base salary calculated under the normal provisions of the Plan exceed such amount.  At that time, the Plan will no longer retain the December 31, 2001, Union Carbide annual pay information and will look solely to the annual base salary calculated under the normal provisions of the Plan to determine the amount of your coverage.

  

8 You are eligible for an additional 1x of coverage over and above the 8x or $1.5 million maximum if  (1) you are an Employee who was enrolled in The Dow Chemical Company Executive Split Dollar Life Insurance Plan on September 30, 2002, and you signed a waiver of all your rights under The Dow Chemical Company Executive Split Dollar Life Insurance Agreement between you and The Dow Chemical Company who elected to purchase the additional 1x coverage effective October 1, 2003, or (2) you are an Employee who was enrolled in the Union Carbide Corporation Executive Life Insurance Plan on October 31, 2002, and you were an active Employee on the date your Agreement and Collateral Assignment between you and Union Carbide Corporation were terminated and you elected to purchase the additional 1x coverage effective November 1, 2003.  If you waive the additional 1x coverage, you are not eligible to enroll for such coverage in the future.  Further, you are no longer eligible for any coverage under the Plan when you no longer have active Employee status.

  

50

  

 

Special Employee Paid Coverage for Certain Disabled Persons

You may be eligible for coverage if you are being paid benefits from The Dow Chemical Company Long Term Disability Income Protection Plan (“LTD”) under the following circumstances:

If the date of your Full Disability is on or after January 1, 2006 the following applies to you:

If you have less than ten (10) years of service under DEPP or UCEPP, you are eligible for up to either 12 months or 24 months of Employee-Paid life insurance coverage beginning on the effective date of your approval for LTD status.  Coverage ends prior to the expiration of the 12 month or 24 month period if you no longer qualify for LTD status.  The 12 month period applies if you have less than one (1) year of service under DEPP or UCEPP.  The 24 month period applies if you have more than one (1) year of service, but less than ten (10) years of service under DEPP or UCEPP.   If you have ten (10) or more years of service under DEPP or UCEPP, you are eligible for coverage.  Currently, eligibility for coverage ends if you are no longer eligible to receive payments from LTD.

The amount of coverage will depend on the amount of coverage you had on the date you were last Actively at Work.  If you had 1⁄2X, then the coverage amount is 1⁄2 X.  If you had 1X or more, then the amount is limited to 1X.  You will be required to pay the same premiums active employees pay.

Rohm and Haas Company Disability Participants

If you are a Rohm and Haas Company Employee9 who has been approved for disability payments under the Rohm and Haas Company Health and Welfare Plan’s Short Term Disability Program, you are eligible for the same amount of supplemental or employee-paid coverage you had immediately prior to your approval for disability payments, until you are no longer eligible to receive disability payments under the Rohm and Haas Company Health and Welfare Plan’s Short Term Disability Program.  You must continue making any required contributions in order to keep your coverage in effect.

If you have been approved for disability payments under the Rohm and Haas Company Health and Welfare Plan’s Long-Term Disability Program, you are eligible for the same amount of supplemental or employee-paid life insurance coverage you had immediately prior to your approval for disability payments, if your qualifying disability was incurred prior to January 1, 2010 and you continue to receive disability payments under the Rohm and Haas Company Health and Welfare Plan’s Disability Program.  Such coverage continues until you are no longer eligible to receive disability payments from that Program.  You must continue making any required contributions in order to keep your coverage in effect.

If you have been approved for Disability Retirement under the Morton International, Inc. Pension Plan for Collectively-Bargained Employees or under Article G of Rider No. 2 of the Rohm and Haas Company Retirement Plan, you are eligible for the same amount of supplemental or employee-paid coverage you had immediately prior to your approval for Disability Retirement.  Such coverage continues until you no longer qualify for Disability Retirement under the Morton International, Inc. Pension Plan for Collectively-Bargained Employees or under Article G of Rider No. 2 of the Rohm and Haas Company Retirement Plan.  You must continue making any required contributions in order to keep your coverage in effect.

Increasing or Decreasing Coverage

 

You may increase the amount of your coverage (but not above the maximum amount you are eligible for):

	
  

	
·

	
Within 90 days of a change in your personal status, such as Marriage, Domestic Partnership, a change in your Spouse's/Domestic Partner’s employment, or the addition of a Dependent child, provided you are Actively at Work and provided the HR Service Center receives proof of change in status that is satisfactory to the Plan Administrator.

	
  

	
·

	
At any time you are Actively at Work, by completing and submitting a statement of health form to MetLife. MetLife will pay for the fee of a paramedical exam, if requested by MetLife, with no cost to the employee/applicant when a MetLife physician is used.

  

9 If you are a Morton Salt Employee and you were approved for a Short-Term Disability benefit under the Rohm and Haas Company Health and Welfare Plan prior to October 1, 2009, this paragraph does not apply to you.  You are not eligible for coverage under The Dow Chemical Company Group Life Insurance Program and The Dow Chemical Employee-Paid and Dependent Life Insurance Program.

  

51

  

	
  

	
·

	
During open enrollment you may increase one increment (1/2X) without completing and submitting a statement of health form, provided you are Actively at Work.

You may decrease the amount of your coverage any time by completing an enrollment form, available from the HR Service Center or the Dow Intranet.

Effective Dates of Coverage

Beginning. Your coverage generally begins on your date of enrollment and when you meet the enrollment requirements outlined in this booklet.  Your coverage automatically is adjusted as your base salary changes.  If you are not Actively at Work, any increase to your life insurance will not be effective until you return to work.

 

Ending.  Your Employee-Paid Life Insurance coverage ends on the earlier of:

The date the Group Policy ends;

The date you no longer meet the eligibility requirements of the Plan;

The end of the period for which your last premium has been paid; or

The date your employment ends.

Porting Coverage to a Term Life Policy

If your Employee-Paid Life Insurance coverage ends because your employment ends, your coverage may be continued on a direct bill basis with MetLife through the portability feature. This feature allows employees to continue their Group Term Life coverage under a separate group policy without completing and submitting a statement of health form.  Rates for this coverage are different from the active plan rates and the employee must port a minimum of $20,000 to exercise this option. You have 31 days from the date your coverage ends to apply for Portability. You may continue the same or lesser amount of coverage. If you are unable to continue your entire life insurance amount through Portability, you may apply for Conversion of the balance. Contact MetLife at 1-866-492-6983 if you have any questions or want to apply for Portability.

Converting to an Individual Policy

If your Employee-Paid Life Insurance coverage is reduced due to retirement, the amount of coverage you lost may be converted to an individual non-term policy through MetLife.  The maximum amount of insurance that may be elected for the new policy is the amount of Employee-Paid Life Insurance you lost under the Employee-Paid Life Insurance Plan.

If your Employee-Paid Life Insurance coverage ends because your employment ends, your coverage may be converted to an individual non-term policy through MetLife.  The maximum amount of insurance that may be elected for the new policy is the amount of Employee-Paid Life Insurance in effect for you under the Employee -Paid Life Insurance Plan on the date your employment ends.

If your Employee-Paid Life Insurance coverage ends because Dow has cancelled the Employee-Paid Life Insurance coverage under the MetLife group life insurance policy, or Dow has amended the Employee-Paid Life Insurance Plan to exclude coverage for your work group, you may convert your Employee-Paid Life Insurance coverage to an individual non-term MetLife policy; provided you have been covered under  the Employee-Paid Life Insurance Plan for at least 5 years immediately prior to losing coverage under the Employee-Paid Life Insurance Plan.  The amount you may convert is limited to the lesser of:

	
  

	
·

	
the amount of  Employee-Paid Life Insurance for you that ends under the Group Policy less the amount of life insurance for which you become eligible under any group policy within 31 days after the date insurance ends under the Group Policy; or

	
  

	
·

	
$2,000.

You must file a conversion application with MetLife within 31 days of the date your Dow coverage is lost or reduces.  Contact the Dow HR Service Center to obtain a form for converting your coverage.   Once you have obtained the form, contact the MetLife Conversion Group at 1-877-275-6387 to file your form, or to obtain further information.  You are responsible for initiating the conversion process within the appropriate timeframes.  

  

52

  

The cost of this individual coverage will probably be significantly higher than your group plan.  Although not required, completing and submitting a statement of health form may help reduce your cost.

Naming Your Beneficiary

 

Effective March 1, 2008, as communicated by the Plan Administrator, MetLife became the record keeper for the Program’s beneficiary records.  Beneficiary information must be registered with MetLife at www.MetLife.com/MyBenefits, or by

mailing the appropriate forms to the MetLife Recordkeeping Center.  Beneficiary information previously recorded at the Dow Benefits Center has not been transferred to MetLife.

If you do not designate a beneficiary, then the default beneficiary will be the same as the beneficiary on your Company-Paid Life Insurance.  If you are not eligible for Company-Paid Life Insurance, and you are enrolled in Post-65 Executive Life, then the default beneficiary is the same as your beneficiary for Post-65 Executive Life.

If you fail to name a beneficiary, MetLife may determine the beneficiary to be one or more of the following who survive you:

	
  

	
·

	
Your Spouse or Domestic Partner; or

	
  

	
·

	
Your children; or

	
  

	
·

	
Your parent(s); or

	
  

	
·

	
Your sibling(s).

If you fail to name a beneficiary, instead of making payment to any of the above, MetLife may pay your estate.  Any payment made by MetLife in good faith will discharge the Plan’s and MetLife’s liability to the extent of such payment.

If you wish to change your beneficiary designation, or you need to register for the first time, you can do so via the Internet at www.MetLife.com/MyBenefits, or the Dow Intranet at My HR Connection.  If you prefer, you can request forms by calling MetLife Customer Service toll-free at (866) 492-6983, Monday – Friday, 8:00 am – 11:00 pm (ET).

Benefit Payments

Payment Options.  In the event of your death, your beneficiary should contact the HR Service Center.  A certified death certificate must be provided to MetLife to disburse the life insurance proceeds.  To file a Claim for a Plan Benefit, see Claims Procedures Appendix of this SPD.

Funding

 

Employees pay the entire premium for coverage.  The benefits under the Employee-Paid Life Insurance Plan and the Dependent Life Insurance Plan are not combined for experience with the other insurance coverages.  Favorable experience under the Employee-Paid Life Insurance Plan and the Dependent Life Insurance Plan in a particular year may offset unfavorable experience in prior years. It is not anticipated that there will be any dividends declared for the Employee-Paid Life Insurance Plan and the Dependent Life Insurance Plan based on the manner in which the insurer has determined the premium rates.

Joint Insurance Arrangement

Dorinco Reinsurance Company (Dorinco) and MetLife have entered into an arrangement that is allowed by the U.S. Department of Labor pursuant to Prohibited Transaction Exemption 96-62 and 29 CFR Part 2570, subpart B. [DOL Final Authorization Number 2001-17E (May 14, 2001)].  Under this arrangement, MetLife has or will write the coverage for the Plan and Dorinco will assume a percentage of the risk.  Under the insurance arrangement between MetLife and Dorinco, MetLife and Dorinco will each be liable to pay the agreed upon percentage of each death benefit claim in respect of a Plan Participant.  When a claim for benefits is approved, Dorinco will transfer its percentage of each death benefit claim to MetLife.  MetLife will then pay the full amount of the claim.  If MetLife is financially unable to pay the portion of the claim, Dorinco will be obligated to pay the full amount of the claim directly.  Similarly, if Dorinco is financially unable to pay its designated percentage of a particular claim, MetLife will be obligated to pay the entire amount of the claim.  Neither MetLife nor Dorinco will charge the Plan any administrative fees, commissions or other consideration as a result of the participation of Dorinco.

  

53

  

Accelerated Benefit Option (ABO)

Under the Accelerated Benefit Option (ABO), if you have been diagnosed as terminally ill with 12 months or less to live, you may be eligible to receive up to 80% of your Company-Paid Life Insurance and Employee-Paid Life Insurance benefits  before death if certain requirements are met.  Having access to life insurance proceeds at this important time could help ease financial and emotional burdens.  In order to apply for ABO, you must be covered for at least $10,000 from your Company

Paid Life Insurance and/or Employee-Paid Life Insurance.  You may receive an accelerated benefit of up to 80 percent (minimum $5,000 and maximum $500,000) of your Company-Paid Life Insurance and/or Employee-Paid Life Insurance benefit.   An accelerated benefit is payable in a lump sum and can be elected only once.  The death benefit will be reduced by the amount of accelerated benefit paid.  Accelerated benefits are not permitted if you have assigned your life insurance benefit to another individual or to a trust.

The accelerated life insurance benefits are intended to qualify for favorable tax treatment under the Internal Revenue Code of 1986, as amended.  If the accelerated benefits qualify for such favorable tax treatment, the benefits will be excludable from your income and not subject to federal taxation. Payment of the accelerated benefit will be subject to state taxes and regulations.  Tax laws relating to accelerated benefits are complex.  You are advised to consult with a qualified tax advisor.

Receipt of accelerated benefits may affect your eligibility, or that of your spouse/domestic partner or your family, for public assistance programs such as medical assistance (Medicaid), Aid to Families and Dependent Children (AFDC), Supplemental Security Income (SSI), and drug assistance programs.  You are advised to consult with social services agencies concerning the effect receipt of accelerated benefits will have on public assistance eligibility for you, your spouse/domestic partner or your family.  In the event your employment status changes in the future, and your life insurance coverage ends or is reduced, the amount of coverage you may be eligible to convert or port will be reduced by the amount of the accelerated benefit received.

If you would like to apply for the Accelerated Benefit Option, a claim form can be obtained from the HR Service Center at 1-877-623-8079 and must be completed and returned for evaluation and approval by MetLife.

Will Preparation Service

     If you elect Employee Paid Life Insurance coverage, you are eligible for a will preparation service available through Hyatt Legal Services, a MetLife affiliate.  This service is available to you while your Employee Paid Life Insurance coverage is in effect. The will preparation service is offered at no cost to you.  You may use an attorney designated by Hyatt Legal Services, or you may use a different attorney. If you have a will prepared by an attorney not designated by Hyatt Legal Services, you must pay for the attorney’s services directly.  You may receive a partial reimbursement for the amount you paid to the attorney if you provide proof of will service and payment satisfactory to Hyatt Legal Services.  The amount reimbursable is the amount customarily reimbursed for such services by Hyatt Legal Services.  Call the HR Service Center for more information.

Your Rights

You have certain rights under the Plan and are entitled to certain information by law.  Be sure to review the Filing a Claim section, Appealing a Denial of Claims section, Fraud Against the Plan section, Grievance Procedure section, Your Legal Rights section, ERISA Enforcement section, Welfare Benefits section, The Company’s Right to Amend, Modify, and Terminate the Plans section, Disposition of Plan Assets if the Plan is Terminated section, For More Information section, Important Note section, and ERISA Information section at the end of this SPD.

  

54

  

Chapter Three

Dependent Life Insurance

Plan Description

 

The Dependent Life Insurance Plan provides coverage for your eligible family members at group rates.   The benefits are insured by a group term life insurance policy underwritten by Metropolitan Life Insurance Company (MetLife).  MetLife pays the benefits under the Plan.  In addition, MetLife is the named fiduciary for making decisions as to whether a Claim for Benefits is payable.

As of January 1, 2005, the following plans have been merged into the Dependent Life Insurance Plan:  Hampshire Chemical Corporation Hourly Optional Group Life Insurance Program’s Dependent Life Insurance Plan; ANGUS Chemical Company Hourly Optional Group Life Insurance Program’s Dependent Life Insurance Plan.   Such plans no longer exist as separate plans, but are now a part of the Dependent Life Insurance Plan.  As of January 1, 2008, the Michigan Hourly Optional Group Life Insurance Program’s Dependent Life Insurance Plan has been merged into the Dependent Life Insurance Plan.

The Dependent Life Insurance Plan is referred to in Chapter Three as the “Plan”.

Eligibility

 

Salaried Employees:

 

Salaried Employees of a Participating Employer with regular, active, Full-Time or Less-Than-Full-Time status are eligible.

 

Bargained-for Employees:

 

Eligibility of Bargained-for Employees depends on whether the applicable collective bargaining unit and the Participating Employer have agreed to this Plan.   With respect to a collective bargaining agreement that specifically addresses which Employees are eligible or not eligible for this Plan, the terms of such collective bargaining agreement shall govern.   If the terms of the collective bargaining agreement specify that Bargained for Employees shall be provided this Plan, but does not specifically address the category of Employees that are eligible or not eligible, then the Plan will provide eligibility to regular active Employees with Full Time status who are members of the collective bargaining group.

 

Employees on a Leave of Absence:

 

Eligibility for benefits under the Plan may continue during certain laves of absences approved by the Participating Employer such as under the Company’s Family Leave Policy or Medical Leave Policy.   The benefits under the Plan shall be administered consistent with the terms of such approved leaves of absences.

 

Eligibility Determinations:

 

The applicable Claims Administrator determines eligibility.  The Claims Administrator is a fiduciary to the Plan and has the full discretion to interpret the provisions of the Plan and to make findings of fact.    If you want to file a Claim for a Determination of Eligibility because you are not sure whether you are eligible to participate in the Plan, or have been told that you are not, see the Claims Procedures Appendix of this SPD.

Run-out claims under ERISA Plan #505 (which was terminated effective 12-31-99) for covered claims that were incurred but not yet paid under that plan, will be paid from this Plan.

Dependent Eligibility

You may purchase coverage on the life of your Spouse of Record/Domestic Partner of Record and/or the life of your Dependent child or Dependent children.

Child means your natural child, adopted child or stepchild who is:

	
  

	
·

	
at least 15 days old:

	
  

	
·

	
under age 25 and who is:

  

55

  

 

	 	 ·	 a full-time student at an accredited school, college, or university that is licensed in the jurisdiction where it is located;
	 	 ·	 unmarried
	 	 ·	 supported by You, and
	 	 ·	 not employed on a full-time basis

	
  

	
This term does not include any person who:

	
  

	
·

	
is in the military of any country or subdivision of any country;

	
  

	
·

	
lives outside the United States or Canada; or

	
  

	
·

	
is insured under the Group Policy as an employee.

The Plan defines a “Full-Time Student” as a student who is a full-time student at an educational institution at any time during the Plan Year.  The determination as to whether a student is full-time is based upon the number of hours or courses which is considered to be full-time by the educational institution.  If a child is age 19 to 25, and loses Full-Time Student status solely because the student has an illness or injury that requires the student to take a medically necessary leave of absence from school, the child is deemed by the Plan to continue to be a Full-Time Student until the earlier of age 25 or the end of the medically necessary leave of absence.

Generally, a child is NOT a Dependent if he or she is:

	
  

	
·

	
Already covered as a dependent of another Dow Employee or Dow Retiree. All covered children in a family must be enrolled by the same parent.

	
  

	
·

	
Married or ever was married.

	
  

	
·

	
Employed full-time.

	
  

	

·

	
Age 25 years or older.

A Dependent Spouse, Domestic Partner, or child is not eligible if he or she resides outside the United States and Canada, or is in the military.

Enrollment

To enroll for Dependent Life Insurance coverage, enroll through the open enrollment period or complete an enrollment form, available from the Intranet or the HR Service Center as described below.  You may enroll:

	
·

	
On or before your date of hire, with coverage to begin on your first day of work if you complete the enrollment form and submitted proof of Dependent eligibility and proof of age.  Failure to provide the required proofs satisfactory to the Plan Administrator within the time required will result in no coverage.

	
·

	
Within 90 days after your first day of active employment, with coverage to begin on your submission of the completed enrollment form and proof of Dependent eligibility and proof of age.  Failure to provide the required proofs satisfactory to the Plan Administrator within the time required will result in no coverage.

	
·

	
Within 90 days of a Change-in-Status, provided you are Actively at Work.  Coverage begins on the date that the Plan receives your enrollment form or you enroll by calling the HR Service Center.  Failure to provide the required proofs satisfactory to the Plan Administrator within the time required will result in no coverage.

	
·

	
During the open enrollment period, provided you are Actively at Work on the January 1 following the open enrollment period.  You will be allowed to increase your Dependent Spouse/Domestic Partner coverage by one increment. There is no incremental limit on increased coverage for Dependent child(ren) during open enrollment.  If you are not Actively at Work on the January 1 following the open enrollment period, any increase in life insurance will not be effective until you return to Active Work.  Proof of eligibility must be submitted prior to December 31 of the year before coverage begins.

	
·

	
At any other time you are Actively at Work, by completing and submitting a statement of health form. Your coverage begins on the date that MetLife accepts your statement of health form. MetLife will pay for the fee of a paramedical exam, if requested by MetLife, with no cost to the employee/applicant when a MetLife physician is used.

 

The Plan Administrator may request proof of Dependent eligibility and proof of age at any time.  Proof may consist of a birth certificate, passport, adoption papers, marriage license, statement of Domestic Partnership or any other proof that the Plan Administrator deems appropriate.  Failure to provide proof of Dependent eligibility and proof of age within the time period required will result in no Dependent coverage.

  

56

  

 

If you enrolled for coverage for your Dependent(s) and fail to provide proof of Dependent eligibility or proof of age satisfactory to the Plan Administrator within the time period required, and the Plan determines that your Dependent(s) is or are not covered, the Plan reserves the right not to refund the premiums you paid, and to cancel coverage of your Dependent(s) retroactive to the date you enrolled your Dependent(s).

Change-in-Status

 

A “change in status” is an event listed in one of the bullets below:

	
  

	
·

	
Events that change your legal marital status, including Marriage, Domestic Partnership, death of Spouse/Domestic Partner, divorce or annulment or similar event with respect to a Domestic Partnership.

	
  

	
·

	
Birth, adoption, placement for adoption or death of Dependent.

	
  

	
·

	
A termination or commencement of employment by you, your Spouse/Domestic Partner or Dependent.

	
  

	
·

	
A reduction or increase in hours of employment by the Employee, Spouse/Domestic Partner or Dependent.

	
  

	
·

	
Dependent satisfies or ceases to satisfy the requirements for unmarried Dependents.

	
  

	
·

	
A change in the place of residence or work for you, your Spouse/Domestic Partner or Dependent.

	
  

	
·

	
Spouse/Domestic Partner gains eligibility for coverage under the Spouse/Domestic Partner’s employer’s health plan.

Amount of Coverage

Salaried Employees and Collective Bargaining Groups that Agreed to this Plan

You may select coverage for your Spouse/Domestic Partner and Dependent children based on the following options.

	
·

	
Spouse/Domestic Partner insurance coverage ranges from a minimum of $10,000 to a maximum of $250,000 in increments of $10,000. The monthly cost is based on your Spouse’s/Domestic Partner’s age, the amount of insurance and whether your Spouse/Domestic Partner is a “non-tobacco user”.

	
·

	
For eligible Dependent child(ren) there are three levels of coverage: $2,000, $5,000 or $10,000.

LTD participants are not eligible for Spouse/Domestic Partner and Dependent Life Coverage.

 

Special Employee Paid Coverage for Certain Disabled Persons

 

	
  

	
Rohm and Haas Company Disability Participants

 

If you are a Rohm and Haas Company Employee10 who has been approved for disability payments under the Rohm and Haas Company Health and Welfare Plan’s Short Term Disability Program, you are eligible for the same amount of dependent insurance coverage you had immediately prior to your approval for disability payments until you are no longer eligible to receive disability payments under the Rohm and Haas Company Health and Welfare Plan’s Short Term Disability Program.  You must continue making any required contributions in order to keep your coverage in effect.

If you have been approved for disability payments under the Rohm and Haas Company Health and Welfare Plan’s Long-Term Disability Program, you are eligible for the same amount of dependent life insurance coverage you had immediately prior to your approval for disability payments, if your qualifying disability was incurred prior to January 1, 2010 and you continue to receive disability payments under the Rohm and Haas Company Health and Welfare Plan’s Disability Program.  Such coverage continues until you are no longer eligible to receive disability payments from that Program.  You must continue making any required contributions in order to keep your coverage in effect.

If you have been approved for Disability Retirement under the Morton International, Inc. Pension Plan for Collectively-Bargained Employees or under Article G of Rider No. 2 of the Rohm and Haas Company Retirement Plan, you are eligible for the same amount of dependent life insurance coverage you had immediately prior to your approval for Disability Retirement.  Such coverage continues until you no longer qualify for Disability Retirement under the Morton International, Inc. Pension Plan for Collectively-Bargained Employees or under Article G of Rider No. 2 of the Rohm and Haas Company Retirement Plan.  You must continue making any required contributions in order to keep your coverage in effect.  

  

10 If you are a Morton Salt Employee and you were approved for a Short-Term Disability benefit under the Rohm and Haas Company Health and Welfare Plan prior to October 1, 2009, this paragraph does not apply to you.  You are not eligible for coverage under The Dow Chemical Company Group Life Insurance Program and The Dow Chemical Employee-Paid and Dependent Life Insurance Program.

  

57

  

 

Increasing or Decreasing Coverage

You may increase the amount of coverage (but not above the maximum amount you are eligible for):

	
·

	
At any time you are Actively at Work, by completing and submitting a statement of health form to MetLife.  MetLife will pay for the fee of a paramedical exam, if requested by MetLife, with no cost to the employee/applicant when a MetLife physician is used.

	
·

	
Within 90 days of a change in status event, such as Marriage, Domestic Partnership, divorce, Termination of Domestic Partnership or the addition of a Dependent child, provided you are Actively at Work and provided the Plan receives proof of the change in status that is satisfactory to the Plan Administrator.

	
·

	
During open enrollment, if you are Actively at Work, you may increase your Spouse’s/Domestic Partner’s coverage one increment without completing and submitting a statement of health form.

You may decrease the amount of your coverage at any time by completing an enrollment card, available from the Dow Intranet or the HR Service Center.

Effective Dates of Coverage

Beginning. Your coverage generally begins on your date of enrollment and when you meet the enrollment requirements outlined in this booklet.

Ending

Your Dependent Life Insurance coverage ends on the earlier of:

The date the Group Policy ends;

The date you or your Dependent no longer meet the eligibility requirements of the Plan;

The end of the period for which your last premium has been paid;

The date your employment ends.

Porting Coverage to a Term Life Policy

If Dependent Life coverage ends because your employment ends, your coverage may be continued on a direct bill basis with MetLife through the portability feature. This feature allows employees to continue their Group Term Life coverage under a separate group policy without completing and submitting a statement of health form.  Rates for this coverage are different from the active plan rates and the employee must port a minimum of $20,000 to exercise this option. You have 31 days from the date your coverage ends to apply for Portability. You may continue the same or lesser amount of coverage.

If you are unable to continue your entire life insurance amount through Portability, you may apply for Conversion of the balance. Contact MetLife at 1-866-492-6983 if you have any questions or want to apply for Portability.

Converting to an Individual Policy

If your Spouse of Record/Domestic Partner of Record or Dependent child’s life insurance coverage is reduced due to retirement, the amount of coverage your Spouse of Record/Domestic Partner of Record or Dependent child lost may be converted to an individual non-term policy through MetLife.  The maximum amount of insurance that may be elected for the new policy is the amount of Spouse of Record/Domestic Partner of Record or Dependent child life insurance you lost under the Dependent Life Insurance Plan.

If your Spouse of Record/Domestic Partner of Record or Dependent child loses coverage under the Dependent Life Insurance Plan because of your death or because he or she no longer meets eligibility requirements, their coverage may be converted to an individual non-term policy through MetLife.  (In the case of minor children, the parent or legal guardian may act on their behalf.) The maximum amount of insurance that may be elected for the new policy is the amount of Dependent Life Insurance that ends under the Dependent Life Insurance provisions of the MetLife group policy.

If your Spouse of Record/Domestic Partner of Record or Dependent child loses coverage under the Dependent Life Insurance Plan because Dow has cancelled the dependent life coverage under the group policy with MetLife, or Dow has amended the eligibility

  

58

  

requirements of the Plan to exclude you or your dependents from eligibility under the Plan, you may convert coverage to an individual non-term MetLife policy for your Dependent; provided you have been enrolled in coverage for your Dependent  under the Dependent Life Insurance Plan for at least 5 years immediately prior to the date the MetLife group coverage  for our Dependent ended.  The amount that may be converted is limited to the lesser of:

	
·

	
the amount of Life Insurance for the Dependent that ends under the MetLife group policy less the amount of life insurance for Dependents for which you become eligible under any group policy within 31 days after the date insurance ends under the Dependent Life Insurance provisions of the  MetLife group policy; or

	
·

	
$2,000.

A conversion application must be filed with MetLife within 31 days of the date coverage is lost or reduced.  You or your Dependent must contact the HR Service Center to obtain a form for converting the coverage.   Once the form has been obtained, you or your Dependent should contact the MetLife Conversion Group at 1-877-275-6387.  You are responsible for initiating the conversion process within the appropriate timeframes.  

The cost of this individual coverage will probably be significantly higher than the group plan.  Although not required, completing and submitting a statement of health form may help reduce the cost.

Employee Contribution

The Employee pays for Dependent Life Insurance coverage.  Your contribution, made through post tax payroll deductions, is based on the coverage option that you choose. For coverage on your Spouse’s/Domestic Partner’s life, your contribution

will also depend on whether your Spouse/Domestic Partner is a “non-tobacco-user”. Your Spouse/Domestic Partner is considered a “non-tobacco-user” by the Plan if your Spouse/Domestic Partner has not used a tobacco product in the last 12 months.  If your Spouse/Domestic Partner quits using tobacco, your Spouse/Domestic Partner is considered a “non-tobacco-user” as of the first day of the month after your Spouse/Domestic Partner completes 12 non-tobacco-using months.  If your Spouse/Domestic Partner is a “non-tobacco-user”, your Spouse/Domestic Partner is considered a tobacco-user as of the first day your Spouse/Domestic Partner uses tobacco.  A false or out-of-date statement regarding tobacco use may result in benefits not being paid. For your portion of the monthly costs, refer to the open enrollment materials provided during open enrollment.

If you are on a Benefit Protected Leave of Absence, the Plan Administrator has the full discretion to make special administrative arrangements as are necessary, such as deferring Employee contributions on a temporary basis during the leave of absence, and requiring the Employee to repay premiums when the Employee returns to work, or any other arrangements the Plan Administrator deems appropriate.

Benefit Payment

	
  

	
Beneficiary Designation.

You are the beneficiary of your Dependent Life Insurance Plan.

The benefits will be paid to you if you survive the Dependent.  If you do not survive your Dependent, MetLife may pay one or more of the following who survive you:

	
  

	
·

	
Your Spouse or Domestic Partner; or

	
  

	
·

	
Your children; or

	
  

	
·

	
Your parent(s); or

	
  

	
·

	
Your sibling(s).

If you do not survive your Dependent, instead of making payment to any of the above, MetLife may pay your estate.  Any payment made by MetLife in good faith will discharge the Plan’s liability to the extent of such payment.

Payment. You should contact the HR Service Center to report a Dependent’s death.  A certified death                                                                              certificate must be provided to MetLife to disburse the life insurance proceeds.  To file a claim, see Claims Procedures Appendix of this SPD.

Funding

Employees pay the entire premium for coverage.  The benefits under the Employee-Paid Life Insurance Plan and the Dependent Life Insurance Plan are not combined for experience with the other insurance coverages.  Favorable experience

  

59

  

 

under this insurance coverage in a particular year may offset unfavorable experience in prior years. It is not anticipated that there will be any dividends declared for the Employee-Paid Life Insurance Plan and the Dependent Life Insurance Plan based on the manner in which the insurer has determined the premium rates.

Joint Insurance Arrangement

 

Dorinco Reinsurance Company (Dorinco) and MetLife have entered into an arrangement that is allowed by the U.S. Department of Labor pursuant to Prohibited Transaction Exemption 96-62 and 29 CFR Part 2570, subpart B. [DOL Final Authorization Number 2001-17E (May 14, 2001)].  Under this arrangement, MetLife has or will write the coverage for the Plan and Dorinco will assume a percentage of the risk.  Under the insurance arrangement between MetLife and Dorinco, MetLife and Dorinco will each be liable to pay the agreed upon percentage of each death benefit claim in respect of a Plan Participant.  When a claim for benefits is approved, Dorinco will transfer its percentage of each death benefit claim to MetLife.  MetLife will then pay the full amount of the claim.  If MetLife is financially unable to pay the portion of the claim, Dorinco will be obligated to pay the full amount of the claim directly.  Similarly, if Dorinco is financially unable to pay its designated percentage of a particular claim, MetLife will be obligated to pay the entire amount of the claim.  Neither MetLife nor Dorinco will charge the Plan any administrative fees, commissions or other consideration as a result of the participation of Dorinco.  This joint insurance arrangement is not applicable to coverage for Hourly Employees employed by Michigan Operations, or their Dependents.

Accelerated Benefit Option (ABO) for Spouses/Domestic Partners Only

Under the Accelerated Benefit Option (ABO), if your Spouse/Domestic Partner has been diagnosed as terminally ill with 12 months or less to live, you may be eligible to receive up to 80 percent of your Spouse/Domestic Partner Dependent Life Insurance benefits  before your Spouse/Domestic Partner’s death if certain requirements are met.  Having access to life proceeds at this important time could help ease financial and emotional burdens.  In order to apply for ABO, your Spouse/Domestic Partner must be covered for at least $10,000 under the Dependent Life Insurance Plan.  You may receive an accelerated benefit of up to 80 percent (minimum $5,000) of the Spouse/Domestic Partner Dependent Life Insurance benefit.   An accelerated benefit is payable in a lump sum and can be elected only once.  The death benefit will be reduced by the amount of accelerated benefit paid.  Accelerated benefits are not permitted if you have assigned your life insurance benefit to another individual or to a trust.

The accelerated life insurance benefits are intended to qualify for favorable tax treatment under the Internal Revenue Code of 1986.  Tax laws relating to accelerated benefits are complex.  You are advised to consult with a qualified tax advisor.

Receipt of accelerated benefits may affect your eligibility, or that of your spouse/domestic partner or your family, for public assistance programs such as medical assistance (Medicaid), Aid to Families and Dependent Children (AFDC), Supplemental Security Income (SSI), and drug assistance programs.  You are advised to consult with social services agencies concerning the effect receipt of accelerated benefits will have on public assistance eligibility for you, your spouse/domestic partner or your family.  In the event your employment status changes in the future, and your life insurance coverage ends or is reduced, the amount of coverage you may be eligible to convert or port will be reduced by the amount of the accelerated benefit received.

If you would like to apply for the Accelerated Benefit Option, a claim form can be obtained from the HR Service Center at 1-877-623-8079 and must be completed and returned for evaluation and approval by MetLife.

Your Rights

You have certain rights under the Plan and are entitled to certain information by law.  Be sure to review the Filing a Claim section, Appealing a Denial of Claims section, Fraud Against the Plan section, Grievance Procedure section, Your Legal Rights section, ERISA Enforcement section, Welfare Benefits section, The Company’s Right to Amend, Modify, and Terminate the Plans section, Disposition of Plan Assets if the Plan is Terminated section, For More Information section, Important Note section, and ERISA Information section at the end of this SPD.

Filing a Claim

See the Claims Procedures Appendix of this SPD.

  

60

  

Appealing a Denial of Claim

See the Claims Procedures Appendix of this SPD.

Fraud Against the Plan

Any Plan Participant who intentionally misrepresents information to the Plan or knowingly misinforms, deceives or misleads the Plan or knowingly withholds relevant information may have his/her coverage cancelled retroactively to the date deemed appropriate by the Plan Administrator.  Further, such Plan Participant may be required to reimburse the Plan for Claims paid by the Plan.  The employer may determine that termination of employment is appropriate and the employer and/or the Plan may choose to pursue civil and/or criminal action.  The Plan Administrator may determine that the Participant is no longer eligible for coverage under the Plan because of his or her actions.

Grievance Procedure

If you want to appeal the denial of a claim for benefits, see the Claims Procedures Appendix of this SPD.

If you feel that anyone is discriminating against you for exercising your rights under these Plans, or if you feel that someone has interfered with the attainment of any right to which you feel you are entitled under these Plans, or if you feel that the Plan Administrator has denied you any right you feel that you have under these Plans, you must notify the Plan Administrator (listed in the “ERISA Information” section of this SPD) in writing within 120 days of the date of the alleged wrongdoing.  The Plan Administrator will investigate the allegation and respond to you in writing within 120 days.  If the Plan Administrator determines that your allegation has merit, the Plan Administrator will either correct the wrong (if it was the Plan which did the wrong), or will make a recommendation to the Participating Employer if any of them have been alleged to be responsible for the wrongdoing.  If the Plan Administrator determines that your allegation is without merit, you may appeal the Plan Administrator’s decision.  You must submit written notice of your appeal to the Plan Administrator within 60 days of receipt of the Plan Administrator’s decision.  Your appeal will be reviewed and you will receive a written response within 60 days, unless special circumstances require an extension of time.  The Plan Administrator will give you written notice and reason for the extension.   In no event should the decision take longer than 120 days after receipt of your appeal.  If you are not satisfied with the Plan Administrator’s response to your appeal, you may file suit in court.   If you file a lawsuit, you must do so within 120 days from the date of the Plan Administrator’s written response to your appeal.  Failure to file a lawsuit within the 120 day period will result in your waiver of your right to file a lawsuit

Your Legal Rights

When you are a participant in the Company-Paid, Employee-Paid or Dependent Life Insurance Plans, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). This law requires that all Plan participants must be able to:

	
  

	
·

	
Examine, without charge, at the Plan Administrator’s office and at other specified locations, the Plan Documents and the latest annual reports filed with the U.S. Department of Labor and available at the Public Disclosure Room of the Pension and Welfare Benefit Administration.

	
  

	
·

	
Obtain, upon written request to the Plan Administrator, copies of the Plan Documents and Summary Plan Descriptions.  The Administrator may charge a reasonable fee for the copies.

	
  

	
·

	
Receive a summary of each Plan’s annual financial report.  The Plan Administrator is required by law to furnish each Participant with a copy of this summary annual report.

In addition to creating rights for you and all other Plan Participants, ERISA imposes duties on the people who are responsible for operating an employee benefit plan.  The people who operate the Plans, called “fiduciaries” of the Plans, have a duty to act prudently and in the interest of you and other Plan Participants and beneficiaries.

No one, including your employer or any other person, may discharge you or otherwise discriminate against you in any way to prevent you from obtaining a Plan benefit, or from exercising your rights under ERISA. If you have a claim for benefits that is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

Under ERISA, there are steps you can take to enforce the legal rights described above.  For instance, if you request materials from one of the Plans and do not receive them within 30 days, you may file suit in a federal court.  In such a case,

 

  

61

  

 

the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Administrator.  If you have a claim for benefits which is denied or ignored, in whole or in part, you must file a written appeal within the time period specified in the Plan’s Claims Procedures.  Failure to comply with the Plan’s claims procedures may significantly jeopardize your rights to benefits.  If you are not satisfied with the final appellate decision, you may file suit in Federal court.  If you file a lawsuit, you must do so within 120 days from the date of the Claims Administrator’s or the Plan Administrator’s final written decision (or the deadline the Claims Administrator or Plan Administrator had to notify you of a decision).  Failure to file a lawsuit within the 120 day period will result in your waiver of your right to file a lawsuit.  The court will decide who should pay court costs and legal fees.  If you are successful the court may order the person you have sued to pay these costs and fees.  If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

If it should happen that plan fiduciaries misuse one of the Plan’s money, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court. If you file a lawsuit, you must do so within 120 days from the date of the

alleged misuse.  Failure to file a lawsuit within the 120 day period will result in your waiver of your right to file a lawsuit.

If you feel that anyone is discriminating against you for exercising your rights under this benefit plan, or if you feel that someone has interfered with the attainment of any right to which you feel you are entitled under any of the Plans, you must notify the Plan Administrator listed in the “ERISA Information” section of this SPD in writing within 120 days of the date of the alleged wrongdoing.  The Plan Administrator will investigate the allegation and respond to you in writing within 120 days.  If the Plan Administrator determines that your allegation has merit, the Plan Administrator will either correct the wrong, if it was the Plan which did the wrong, or will make a recommendation to the Plan Sponsor or Participating Employer if any of them have been alleged to be responsible for the wrongdoing.  If the Plan Administrator determines that your allegation is without merit, you may appeal the Plan Administrator’s decision.   You must submit written notice of your appeal to the Plan Administrator within 60 days of receipt of the Plan Administrator’s decision.  Your appeal will be reviewed and you will receive a written response within 60 days.  If you are not satisfied with the Plan Administrator’s response to your appeal, you may file suit in Federal court.   If you file a lawsuit, you must do so within 120 days from the date of the Plan Administrator’s written response to your appeal.  Failure to file a lawsuit within the 120 day period will result in your waiver of your right to file a lawsuit.

If you have any questions about the Program, you should contact the Plan Administrator.  If you have any questions about this statement or about your rights under ERISA, you should contact the nearest Office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue, N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.

 

Plan Administrator’s Discretion

 

The Plan Administrator is a fiduciary to the Programs.  Except for the duties reserved to the Claims Administrator, the Plan Administrator has the full and complete discretion to interpret and construe all of the provisions of the Programs.  Such interpretation of the provisions of the Programs shall be final, conclusive, and binding.  The Plan Administrator also has the full and complete discretion to make findings of fact.  Except for the duties reserved to the Claims Administrator, the Plan Administrator has the full authority to apply those findings of fact to the provisions of the Programs.  All findings of fact made by the Plan Administrator shall be final, conclusive and binding.  For a detailed description of the Plan Administrator’s authority, see the Plan Document for the applicable Program.  For information about the Claims Administrator’s discretion, see Claims Procedures Appendix.

Welfare Benefits

Welfare benefits, such as the Company-Paid Life Insurance Plan, Employee-Paid Life Insurance Plan and Dependent Life Insurance Plan, are not required to be guaranteed by a government agency.

Amendment, Modification, or Termination of the Programs

The Company reserves the right to amend, modify, or terminate the Programs at any time at its sole discretion.   The procedures for amending, modifying or terminating the Programs are contained in the Plan Document for the respective Program.

  

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Disposition of Plan Assets if the Plans are Terminated

The Company may terminate any of the Programs or Plans at any time at its sole discretion.   If the Company terminates a Plan, the assets of the Plan, if any, shall not be used by the Company, but may be used in any of the following ways:

	
  

	
1)

	
to provide benefits for Participants of the applicable Program in accordance with the applicable Program, and/or

	
  

	
2)

	
to pay third parties to provide such benefits, and/or

	
  

	
3)

	
to pay expenses of the applicable Program and/or the Trust holding the applicable Program's assets, and/or

	
  

	
4)

	
To provide cash for Participants, as long as the cash is not provided disproportionately to officers, shareholders, or Highly Compensated Employees.

Class Action Lawsuits

Legal actions against the Plan must be filed in U.S. federal court.  Class action lawsuits must be filed either 1) in the jurisdiction in which the Plan is administered (Michigan) or 2) the jurisdiction in the United States of America where the largest number of putative members of the class action reside.  This provision does not waive the requirement to exhaust administrative remedies before the filing of a lawsuit.

 

For More Information

If you have questions, phone the HR Service Center at (989) 638-8757 or 877-623-8079. They can provide more details about this benefit Plan.

Important Note

 

	 This booklet is the summary plan description (SPD) for The Dow Chemical Company Group Life Insurance Program’s Company-Paid Life Insurance Plan and The Dow Chemical Company Employee-Paid  and Dependent Life Insurance Program’s Employee-Paid Life Insurance Plan and Dependent Life Insurance Plan.  However, it is not all-inclusive and it is not intended to take the place of each Plan’s legal documents.  In case of conflict between this SPD and the applicable Plan Document, the applicable Plan Document will govern. 

The Company reserves the right to amend, modify or terminate the Programs at any time at its sole discretion.  The procedures for amending each of the Programs are contained in the applicable Plan Document.

The Plan Documents can be made available for your review upon written request to the Plan Administrator (listed in the ERISA Information section of this Summary Plan Description).

This Summary Plan Description (SPD) and the benefits described do not constitute a contract of employment. Your employer retains the right to terminate your employment or otherwise deal with your employment as if this SPD and the Plans had never existed.

 

  

63

  

ERISA Information

The Dow Chemical Company Group Life Insurance Program’s

 Company-Paid Life Insurance Plan

(A Welfare Benefit Plan)

	
Plan Sponsor:

	
The Dow Chemical Company

Employee Development Center

Midland, MI 48674

1-877-623-8079

	  	  
	
Employer Identification

Number:

	
 

38-1285128

	  	  
	
Plan Number:

	
507

	  	  
	
Group Policy Number:

	
11700-G

	  	  
	
Plan Administrator:

	
U.S. Health & Welfare Leader

Employee Development Center

Midland, MI 48674

1-877-623-8079

	  	  
	
To Apply For a Benefit

Contact:

	
 

See Claims Procedures Appendix to this SPD.

	  	  
	
To Appeal a Benefit

Determination, File with:

	
 

See Claims Procedures Appendix to this SPD.

	  	  
	
To Serve Legal Process,

File With:

	
General Counsel

The Dow Chemical Company

Corporate Legal Department

2030 Dow Center

Midland, MI 48674

	  	  
	
Claims Administration For Claims for Plan Benefits:

	
Metropolitan Life Insurance Company administers

claims under a group policy

issued to The Dow Chemical Company

MetLife, Inc.

Group Life Claims

Oneida County Industrial Park

Utica, NY 13504-6115

	  	  
	
Plan Year:

	
The Program's fiscal records are kept on a plan year beginning January 1 and ending December 31.

	  	  
	
Funding:

	
Dow pays the entire premium for the Programs.  Benefits are funded through a group insurance contract with MetLife, Inc The assets of the respective Program may be used at the discretion of the Plan Administrator to pay for any benefits provided under the respective Program, as the respective Program may be amended from time to time, as well as to pay for any expenses of the respective Program.  Such expenses may include, and are not limited to, consulting fees, actuarial fees, attorney fees, third party administrator fees and other administrative expenses.

 

  

64

  

ERISA Information

The Dow Chemical Company Employee-Paid and Dependent Life Insurance Program’s

 Employee-Paid and Dependent Life Insurance Plans

(Welfare Benefit Plans)

	
Plan Sponsor:

	
The Dow Chemical Company

Employee Development Center

Midland, MI 48674

1-877-623-8079

	  	  
	
Employer Identification

Number:

	
 

38-1285128

	  	  
	
Plan Number:

	
515

	  	  
	
Group Policy Number:

	
11700-G

	  	  
	
Plan Administrator:

	
U.S. Health & Welfare Leader

The Dow Chemical Company

Employee Development Center

Midland, MI 48674

1-877-623-8079

	  	  
	
To Apply For a Benefit

Contact:

	
 

See Claims Procedures Appendix to this SPD.

	  	  
	
To Appeal a Benefit

Determination, File with:

	
 

See Claims Procedures Appendix to this SPD.

	  	  
	
To Serve Legal Process,

File With:

	
General Counsel

The Dow Chemical Company

Corporate Legal Department

2030 Dow Center

Midland, MI 48674

	  	  
	
Claims Administration For Claims for Plan Benefits:

	
Metropolitan Life Insurance Company administers

claims under a group policy

issued to The Dow Chemical Company.

MetLife, Inc.

Group Life Claims

Oneida County Industrial Park

Utica, NY 13504-6115

	  	  
	
Plan Year:

	
The Program's fiscal records are kept on a plan year beginning January 1 and ending December 31.

	
Funding:

	
Employees pay the premiums. Benefits are funded through a group insurance contract with MetLife.  Any assets of the respective Program may be used at the discretion of the Plan Administrator to pay for any benefits provided under the

respective Program, as the respective Program may be amended from time to time, as well as to pay for any expenses of the “Program”.  Such expenses may include, and are not limited to, consulting fees, actuarial fees, attorney fees, third party administrator fees, and other administrative expenses.

  

65

  

 

	
Joint Insurance

Arrangement:

	
Dorinco and MetLife have entered an arrangement approved by the U.S. Department of Labor (DOL Advisory Opinion Letter 97-24A) in which if MetLife is insolvent, the entire life insurance benefit will be paid by Dorinco.   If Dorinco is insolvent, the entire life insurance benefit will be paid by Metropolitan. Dorinco’s address is:

 

Dorinco Reinsurance Company

1320 Waldo Avenue

Dorinco Building

Midland, MI  48642

  

66

  

CLAIMS PROCEDURES APPENDIX

For the Summary Plan Descriptions of the Life Insurance Plans Sponsored by

The Dow Chemical Company

You Must File a Claim in Accordance with These Claims Procedures

A “Claim” is a written request by a claimant for a Plan benefit or an Eligibility Determination.  There are two kinds of Claims:

A Claim for Plan Benefits is a request for benefits covered under the Plan.

An Eligibility Determination is a kind of Claim.  It is a request for a determination as to whether a claimant is eligible to be a Participant or covered Dependent under the Plan.

You must follow the claims procedures for either CLAIMS FOR PLAN BENEFITS or CLAIMS FOR AN ELIGIBILITY DETERMINATION, whichever applies to your situation.   See the applicable sections below entitled CLAIMS FOR PLAN BENEFITS and CLAIMS FOR ELIGIBILITY DETERMINATIONS.

Who Will Decide Whether to Approve or Deny My Claim?

 

The Program has more than one Claims Administrator.  Each of the Claims Administrators is a named fiduciary of the Program with respect to the respective types of Claims that they process.

 

Claims for an Eligibility Determination:  The initial determination is made by the Initial Claims Reviewer.  The Initial Claims Reviewer is the U.S. health and Welfare Leader for The Dow Chemical Company or his delegate. If you appeal, the appellate decision is made by the Appeals Administrator.   The Appeals Administrator is the Global Director of Benefits for The Dow Chemical Company.

Claims for a Plan Benefit:  The initial determination is made by the Initial Claims Reviewer.  The Initial Claims Reviewer is MetLife.  If you appeal, the appellate decision is made by the Appeals Administrator.   The Appeals Administrator is MetLife.

An Authorized Representative May Act on Your Behalf

An Authorized Representative may submit a Claim on behalf of a Plan Participant.  The Plan will recognize a person as a Plan Participant’s “Authorized Representative” if such person submits a notarized document signed by the Participant stating that the Authorized Representative is authorized to act on behalf of such Participant.  A court order stating that a person is authorized to submit Claims on behalf of a Participant will also be recognized by the Plan.

Authority of the Administrators and Your Rights Under ERISA

The Claims Administrators have the full, complete, and final discretion to interpret the provisions of the Plan and to make findings of fact in order to carry out their respective Claims decision-making responsibilities.

Interpretations and claims decisions by the Claims Administrators are final and binding on Participants (except to the extent the Initial Claims Reviewer is subject to review by the Appeals Administrator).   If you are not satisfied with an Appeals Administrator’s final appellate decision, you may file a civil action against the Plan under s. 502 of the Employee Retirement Income Security Act (ERISA) in a federal court.  If you file a lawsuit, you must do so within 120 days from the date of the Appeals Administrator’s final written decision.  Failure to file a lawsuit within the 120 day period will result in your waiver of your right to file a lawsuit.

CLAIMS FOR PLAN BENEFITS

Information Required In Order to Be a “Claim”:

  

67

  

For Claims that are requests for Plan benefits, the claimant must complete a MetLife claims form.  Call the HR Service Center at 1-877/623-8079 to obtain a form.  (Retirees should call the Retiree Service Center to obtain a form at 1-800/344-0661).   In addition, you must attach a certified death certificate (must be certified by the government authority, as exhibited by a “raised seal” on the certificate).  You may request assistance from the U.S. Benefits Center (1-989/636-9556) if you need help completing the MetLife claims form.

Once you have completed the MetLife claims form, you must send it and the certified death certificate to:

U.S. Benefits Center

The Dow Chemical Company

Employee Development Center

Midland, MI  48674

Attention: Administrator for the life insurance plans

The U.S. Benefits Center will review and sign your completed MetLife claims form and forward the form and certified death certificate to:

Metropolitan Life Insurance Company

Group Life Claims

P.O. Box 6115

Utica, NY  13504-6115

CLAIMS FOR DETERMINATION OF ELIGIBILITY

Information Required In Order to Be a “Claim”:

For Claims that are requests for Eligibility Determinations, the Claims must be in writing and contain the following information:

	
  

	
·

	
State the name of the Employee, and also the name of the person (Employee, Spouse/Domestic Partner, Dependent child, as applicable) for whom the Eligibility Determination is being requested

	
  

	
·

	
Name the benefit plan for which the Eligibility Determination is being requested

	
  

	
·

	
If the Eligibility Determination is for the Employee’s Dependent, describe the relationship for whom an Eligibility Determination is being requested to the Employee (e.g. Spouse/Domestic Partner, child, etc.)

	
  

	
·

	
Provide documentation of such relationship (e.g. marriage certificate, Statement of Domestic Partnership, birth certificate, etc)

Claims for Eligibility Determinations must be filed with:

U.S. Health & Welfare Plans Leader

The Dow Chemical Company

Employee Development Center

Midland, MI  48674

Attention: Administrator for the life insurance plans

                (Eligibility Determination)

INITIAL DETERMINATIONS

If you submit a Claim for Plan Benefits or a Claim for Eligibility Determination to the applicable Initial Claims Reviewer, the applicable Initial Claim Reviewer will review your Claim and notify you of its decision to approve or deny your Claim.  Such notification will be provided to you in writing within a reasonable period, not to exceed 90 days of the date you submitted your claim; except that under special circumstances, the Initial Claims Reviewer may have up to an additional 90 days to provide you such written notification.  If the Initial Claims Reviewer needs such an extension, it will notify you prior to the expiration of the initial 90 day period, state the reason why such an extension is needed, and indicate when it will make its determination. If the applicable Initial Claims Reviewer denies the Claim, the written notification of the Claims

  

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decision will state the reason(s) why the Claim was denied and refer to the pertinent Plan provision(s). If the Claim was denied because you did not file a complete Claim or because the Initial Claims Reviewer needed additional information, the Claims decision will state that as the reason for denying the Claim and will explain why such information was necessary.

APPEALING THE INITIAL DETERMINATION

If the applicable Initial Claims Reviewer has denied your Claim for Plan Benefits or Claim for Eligibility Determination, you may appeal the decision.  If you appeal the Initial Claims Reviewer’s decision, you must do so in writing within 60 days of receipt of the Initial Claims Reviewer’s determination, assuming that there are no extenuating circumstances, as determined by the applicable Initial Claims Reviewer.  Your written appeal must include the following information:

·      Name of Employee

	
·

	
Name of Dependent or beneficiary, if the Dependent or beneficiary is the person who                         is appealing the Initial Claims Reviewer’s decision

·      Name of the benefit Plan

·      Reference to the Initial Determination

·      Explain reason why you are appealing the Initial Determination

Send appeals of Eligibility Determinations to:

Global Director of Benefits

The Dow Chemical Company

Employee Development Center

Midland, MI  48674

Attention: Administrator for the life insurance plans

    (Appeal of Eligibility Determination)

Send appeals of benefit denials to:

Metropolitan Life Insurance Company

Group Life Claims – The Dow Chemical Company

Oneida County Industrial Park

Utica, NY  13504-6115

Attention: Claims Administrator

    (Appellate Review)

You may submit any additional information to the applicable Appeals Administrator when you submit your request for appeal.  You may also request that the Appeals Administrator provide you copies of documents, records and other information that is relevant to your Claim, as determined by the applicable Appeals Administrator under applicable federal regulations.  Your request must be in writing.  Such information will be provided at no cost to you.

After the applicable Appeals Administrator receives your written request to appeal the initial determination, the Appeals Administrator will review your Claim.  Deference will not be given to the initial adverse decision, and the appellate reviewer will look at the Claim anew.  The person who will review your appeal will not be the same person as the person who made the initial decision to deny the Claim.  In addition, the person who is reviewing the appeal will not be a subordinate who reports to the person who made the initial decision to deny the Claim.  The Appeals Administrator will notify you in writing of its final decision.  Such notification will be provided within a reasonable period, not to exceed 60 days of the written request for appellate review, except that under special circumstances, the Appeals Administrator may have up to an additional 60 days to provide written notification of the final decision.  If the Appeals Administrator needs such an extension, it will notify you prior to the expiration of the initial 60 day period, state the reason why such an extension is needed, and indicate when it will make its determination.  If the Appeals Administrator determines that it does not have sufficient information to make a decision on the Claim prior to the expiration of the initial 60 day period, it will notify you.  It will describe any additional material or information necessary to submit to the Plan, and provide you with the deadline for submitting such information.  The initial 60 day time period for the Appeals Administrator to make a final written decision, plus the 60 day extension period (if applicable) are tolled from the date the notification of insufficiency is sent to you until the date on which it receives your response.  (“Tolled” means the “clock or time is stopped or suspended”.  In other words, the deadline for the Appeals

  

69

  

 

Administrator to make its decision is “put on hold” until it receives the requested information).  The tolling period ends when the Appeals Administrator receives your response, regardless of the adequacy of your response.

If the Appeals Administrator has determined to that its final decision is to deny your Claim, the written notification of the decision will state the reason(s) for the denial and refer to the pertinent Plan provision(s).

  

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DEFINITIONS APPENDIX

See Plan Document for additional definitions.  A pronoun or adjective in the masculine gender includes the feminine gender, and the singular includes the plural, unless the context clearly indicates otherwise.

“Actively at Work” or “Active Work” means that you are performing all of the usual and customary duties of your job with the Participating Employer on a Full Time or Less-Than Full Time basis.  This must be done at:

	
  

	
a.

	
the Participating Employer’s place of business; or;

	
  

	
b.

	
an alternate place approved by the Participating Employer; or

	
  

	
c.

	
a place to which the Participating Employer’s business requires you to travel.

You will be deemed to be Actively at Work during weekends or Participating Employer approved vacations, holidays or business closures if you were Actively at Work on the last scheduled work day preceding such time off.

"Administrator" means either the Plan Administrator or the Claims Administrator.

“Appeals Administrator” with respect to reviewing an adverse Claim for Benefits, means MetLife.  The Appeals Administrator for reviewing an adverse Claim for an Eligibility Determination is the Global Director of Benefits for The Dow Chemical Company.

 

"Bargained-for Individual" or “Bargained-for Employee” means an Employee who is represented by a collective bargaining unit that is recognized by the Company or Participating Employer.  “Hourly Employee” and “Bargained-for Employee” have the same meaning.

"Claim" means a written request by a claimant for a plan benefit or an Eligibility Determination that contains at a minimum, the information described in the Claims Procedures Appendix of the applicable SPD.

"Claim for an Eligibility Determination" means a Claim requesting a determination as to whether a claimant is eligible to be a Participant under a Plan.

"Claim for a Plan Benefit" means a Claim requesting that the Plan pay for benefits covered under a Plan.

"Claims Administrator" means either the Initial Claims Reviewer or the Appeals Administrator, depending on the context of the sentence in which the term is used.

"Code" means the Internal Revenue code of 1986, as amended from time to time.  Reference to any section or subsection of the Code includes reference to any comparable or succeeding provisions of any legislation which amends, supplements or replaces such section or subsection.

"Company" means The Dow Chemical Company, a corporation organized under the laws of Delaware.

“Disability Retirement” means disability retirement under the Morton International, Inc. Pension Plan for Collectively-Bargained Employees, or under Article G of Rider No. 2 of the Rohm and Haas Company Retirement Plan.

“Domestic Partner” means a person who is a member of a Domestic Partnership.

“Domestic Partnership” means two people claiming to be "domestic partners" who meet all of the following requirements of paragraph A, or the requirements of paragraph B:

A.

	
  

	
1.

	
the two people must have lived together for at least twelve (12) consecutive months immediately prior to receiving coverage for benefits under the Plan, and

	
  

	
2.

	
the two people are not Married to other persons either now, or at any time during the twelve month period, and

  

71

  

	
  

	
3.

	
during the twelve month period, and now, the two people have been and are each other's sole domestic partner in a committed relationship similar to a legal Marriage relationship and with the intent to remain in the relationship indefinitely, and

	
  

	
4.

	
each of the two people must be legally competent and able to enter into a contract, and

	
  

	
5.

	
the two people are not related to each other in a way which would prohibit legal Marriage between opposite sex individuals, and

	
  

	
6.

	
in entering the relationship with each other, neither of the two people are acting fraudulently or under duress, and

	
  

	
7.

	
during the twelve month period and now, the two people have been and are financially interdependent with each other, and

	
  

	
8.

	
each of the two people have signed a statement acceptable to the Plan Administrator and have provided it to the Plan Administrator.

B.

	
  

	
1.

	
Evidence satisfactory to the Plan Administrator is provided that the two people are registered as domestic partners, or partners in a civil union in a state or municipality or country that legally recognizes such domestic partnerships or civil unions, and

	
  

	
2.

	
each of the two people have signed a statement acceptable to the Plan

	
  

	
Administrator and have provided it to the Plan Administrator.

"Dow" means a Participating Employer or collectively, the Participating Employers, as determined by the context of the sentence in which it is used, as such is interpreted by the Plan Administrator or his delegee.

“Employee” means a person who:

	
  

	
a.

	
is employed by a Participating Employer to perform personal services in an employer-employee relationship which is subject to taxation under the Federal Insurance Contribution Act or similar federal statute; and

	
  

	
b.

	
receives payment for services performed for the Participating Employer directly from the Company’s U.S. Payroll Department, or another Participating Employer’s U.S. Payroll Department; and

	
  

	
c.

	
is either a Salaried individual who is classified by the Participating Employer as having “regular full-time status or “less-than-full-time status’, or a Bargained-for individual who is classified by the Participating Employer as having “regular full –time active status”, and

	
  

	
d.

	
if  Localized, is Localized in the U.S., and

	
  

	
e.

	
if on an international assignment, is either a U.S. citizen or Localized in the U.S.

The definition of “Employee” does not include an individual who performs services for the benefit of a Participating Employer if his compensation is paid by an entity or source other than the Company’s U.S. Payroll Department or another Participating Employer’s U.S. Payroll Department.  Further, the definition of “Employee” does not include any individual who is characterized by the Participating Employer as an independent contractor, contingent worker, consultant, contractor, or similar term.  These individuals are not “Employees” (with a capital “E”) for purposes of the Plan even if such an individual is determined by a court or regulatory agency to be a “common law employee” of a Participating Employer.

"ERISA" means the Employee Retirement Income Security Act of 1974, as amended from time to time.

“Full-Time” Employee means an Employee who has been classified by a Participating Employer as having “full-time” status.

"Hourly Employee" means an Employee who is represented by a collective bargaining unit that is recognized by the Company or Participating Employer.  “Hourly Employee” and “Bargained-for Employee” have the same meaning.

“Initial Claims Reviewer” with respect to deciding Claims for Plan Benefits is MetLife.  With respect to deciding a Claim for an Eligibility Determination, the Initial Claims Reviewer is the U.S. Health and Welfare Leader.

“Less-Than-Full-Time” Employee means an Employee who has been approved by a Participating Employer to work 20 to 39 hours per week and is classified by a Participating Employer as having “Less-Than-Full-Time Status”.

“Localized” means that a Participating Employer has made a determination that an Employee is permanently relocated to a particular country, and the Employee has accepted such determination.  For example, a Malaysian national is “Localized” to

  

72

  

the U.S. when a Participating Employer has determined that such Employee is permanently relocated to the U.S., and such Employee has accepted such determination.

"Married" or "Marriage" means a legally valid marriage between a man and a woman recognized by the state in which the man and the woman reside.

“MetLife” means Metropolitan Life Insurance Company.

"Participating Employer" means the Company or any other corporation or business entity the Company authorizes to participate in the Program with respect to its Employees. Notwithstanding anything to the contrary, a “Participating Employer” is only a “Participating Employer” while it is a member of the Controlled Group. If the entity ceases to be a member of the Controlled Group, then the entity ceases to be a “Participating Employer” on the date it is no longer a member of the “Controlled Group”. “Controlled Group” is with respect to The Dow Chemical Company, and means a controlled group

of corporations or entities within the meaning of section 414(b) or section 414(c) of the Code.

“Plan” means either the Company-Paid Life Insurance Plan (for Salaried and Certain Bargained for Employees), which is a component of The Dow Chemical Company Group Life Insurance Program (ERISA Plan #507); or the Employee-Paid Life Insurance Plan or the Dependent Life Insurance Plan, which are components of The Dow Chemical Company Employee-Paid and Dependent Life Insurance Program (ERISA Plan #515); whichever the case may be.

“Plan Administrator” means each of the Vice President of Compensation and Benefits, the Global Director of Benefits, the U.S. Health and Welfare Leader, and such other person, group of persons or entity  which may be designated by the Plan Sponsor in accordance with the Plan Document.

"Plan Document" means either the plan document for The Dow Chemical Company Group Life Insurance Program or The Dow Chemical Company Employee-Paid and Dependent Life Insurance Program, whichever the case may be.

"Program" means either The Dow Chemical Company Group Life Insurance Program (ERISA Plan #507) or The Dow Chemical Company Employee-Paid and Dependent Life Insurance Program (ERISA Plan #515), whichever the case may be.

"Program Year" means the 12-consecutive-month period ending each December 31.

 “Regular” Employee is an Employee who is classified by the Employer as “regular.”

"Retire" or "Retirement" means when an active Employee who is age 50 or older with 10 or more years of Service terminates employment with a Participating Employer who is also a “Retiree”.

"Retiree" means an Employee who is age 50 or older with 10 or more years of Service when his employment terminated with a Participating Employer and is eligible to receive a pension under the Dow Employees’ Pension Plan and was a Participant in the Program on the day preceding Retirement.  An Employee who is receiving, or has received a benefit, under the 1993 Special Separation Payment Plan who is 50 or older at the time he leaves active employment with Dow, regardless of years of Service, is also a "Retiree".

“Retiree” also means an Employee who is age 50 or older with 10 or more years of Service when his employment terminated with a Participating Employer, terminated employment with the Participating Employer on or after February 6, 2003, is eligible to receive a pension under the terms of the Union Carbide Employees’ Pension Plan, and was a Participant in the Program on the day preceding termination of employment with the Participating Employer.

“Retiree” also means an Employee who was enrolled in The Dow Chemical Company Executive Split Dollar Life Insurance Plan, terminated employment with Dow Chemical Canada Inc. on or after October 1, 2003 at age 50 or older with 10 or more years of Service, is eligible to receive a pension from the pension plan sponsored by Dow Chemical Canada Inc., and signed a waiver of all his rights under The Dow Chemical Company Executive Split Dollar Life Insurance Agreement between himself and The Dow Chemical Company.

“Rohm and Haas Company” means the “participating employer” as defined under the Rohm and Haas Company Health and Welfare Plan.

  

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"Salaried" means an individual who is not represented by a collective bargaining unit.

“Service” means:

With respect to a Retiree who is eligible to receive a pension from the Dow Employees’ Pension Plan, "Service" means either Eligibility Service" or "Credited Service" recognized under the Dow Employees' Pension Plan, whichever is greater.   With respect to a Retiree who is eligible to receive a pension from the Union Carbide Employees’ Pension Plan, “Service” means “Eligibility Service” or “Credited Service” recognized under the Union Carbide Employees’ Pension Plan, whichever is greater.

"Spouse" means a person who is Married to the Employee.

“SPD” means the Summary Plan Description.

 

  

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