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PRIVATE 

Exhibit (10)(iii)(A)(5)

 
 

Imperial Oil Limited Earnings Bonus Unit Plan    
  

1.    Plan Purpose  

        The purpose of the Imperial Oil Limited Earnings Bonus Unit Plan (the "Plan") is to provide an incentive to selected employees to promote individual contribution
to sustained improvement to the Company's business performance and shareholder value, as evidenced by growth in the basic net earnings per common share of the Company, and to motivate them to remain
with the Company. 

2.    Description of Award  

        This incentive is provided by the grant of Imperial Oil Limited Earnings Bonus Units ("IEBUs"), which gives the Grantee the right, subject to the terms and
conditions herein, to receive a cash payment from the Company equal to the Maximum Settlement Value per IEBU, when the cumulative basic net earnings per common share of the Company reach at least the
Maximum Settlement Value per IEBU prior to the fifth anniversary of the Grant Date, or equal to the cumulative basic net earnings per common share ending on the last full quarter that precedes the
fifth anniversary of the Grant Date if the cumulative basic net earnings per common share do not reach the Maximum Settlement Value per IEBU. 

3.    Eligibility and Awards  

        IEBUs will only be granted to employees of the Company or a Designated Employer. Frequency and number of units to individual participants will be determined by the
Company. Individual awards under this Plan will not necessarily be granted annually. 

4.    Definitions  

	a)
	"Company"
means Imperial Oil Limited, its wholly owned subsidiaries and partnerships.

	b)
	"Continued
Employment" means continued employment after the IEBU Grant Date with any one or more of the Company or a Designated Employer.

	c)
	"Cumulative
basic net earnings per common share" means the published net earnings per outstanding common share per quarter, accumulated each quarter starting with the first full
quarter following the Grant Date.

	d)
	"Designated
Employer" means an employer which is an affiliate of the Company and which is designated as such for the purposes of this Plan by the Company.

	e)
	"Grant
Date" means the date specified in the Grant Instrument that an IEBU is granted under the Plan.

	f)
	"Grant
Instrument" means the document given by the Company to an employee governing a grant of IEBUs.

	g)
	"Grantee"
means the recipient of a Grant Instrument.

	h)
	"Legal
Representatives" means a Grantee's executors or administrators, a Transferee, or the executors or administrators of a Transferee.

	i)
	"Maximum
Settlement Value per IEBU" means the maximum cumulative basic net earnings per common share specified by the Company in the Grant Instrument that can be attributable to the
applicable IEBU.

	j)
	"Settlement
Date" means the earlier of the fifth anniversary of the Grant Date or the date of publication of the Company's quarterly earnings statements which bring the cumulative
basic net earnings per common share as initially published, commencing with the first full quarter following the Grant Date and including the last full quarter preceding the fifth anniversary of the
Grant Date to an amount at least equal to the Maximum Settlement Value per IEBU specified in the Grant Instrument.

	k)
	"Transferee"
means a person to whom the Grantee's executors or administrators transfer all or some of the IEBUs. 

E-4

 

PRIVATE 

5.    Vesting of Units  

        The IEBUs vest immediately, subject to the restrictions in clauses 6 and 8. 

6.    Restrictions on Payment  

	a)
	No
IEBUs will be payable prior to the Settlement Date.

	b)
	Except
as provided hereinafter, IEBUs will be forfeited and will not be payable in case the Grantee's Continued Employment terminates.

	c)
	In
case the Grantee becomes entitled on or before the Settlement Date, to payment of extended disability benefits under the Company's extended disability benefit plan, the Grantee
shall continue to have the right to receive cash payment of IEBUs or, in case of death after entitlement as foresaid, by the Grantee's Legal Representatives.

	d)
	In
case the Grantee dies during Continued Employment on or before the Settlement Date, cash payment of IEBUs will be made to the Grantee's Legal Representatives on the Settlement Date.

	e)
	In
case the Grantee's Continued Employment terminates on or before the Settlement Date and the Grantee becomes entitled to an annuity under section 2 of the Company's retirement
plan (or the provision in any plan or plans of the Company substituted thereof), the Company shall determine, at its discretion, whether the Grantee's IEBUs will not be forfeited.

	f)
	Notwithstanding
anything to the contrary in this Plan, the Company, at its discretion, may determine that the Grantee's IEBUs are forfeited and are not payable as a consequence of any
of the following situations:

	(i)
	the
Company believes that the Grantee intends to terminate Continued Employment and sub-clauses 6(c), 6(d), and 6(e) would not
be applicable, or

	(ii)
	during
Continued Employment or during the period of 24 months after the termination of the Grantee's Continued Employment, the Grantee, without
the written consent of the Company, directly or indirectly is employed in, or as principal, agent, partner or otherwise engages in any business that is in competition with the Company, as determined
by the Company, or otherwise engages in any activity that is detrimental to the Company, as determined by the Company. 

7.    Method of Payment  

	a)
	Cash
payment of the benefit from IEBUs will normally be made as soon as possible after the Settlement Date.

	b)
	In
the discretion of the Company, payment may be deferred as specified by the Grantee based on options for such deferral provided to the Grantee by the Company.

	c)
	Payments
will be reduced by any amount required to be withheld by any government authority. 

8.    Significant Changes  

        In the case of any subdivision, consolidation, or reclassification of the shares of the Company or other relevant change in the capitalization of the Company or a
change in the accounting principles applicable to the Company's financial statements, the Company, in its discretion, may make appropriate adjustments in the calculation of the amount payable per
IEBU, and an adjustment by the Company shall be conclusive as to the amount payable per IEBU and shall be final and binding upon all persons. 

9.    Other  

	a)
	No
right created by the granting of IEBUs can be pledged in any circumstance, nor can it be assigned except in the case of death. Any attempt to pledge or assign may, in the discretion
of the Company, result in forfeiture of the rights created herein.

	b)
	The
Company will determine conclusively all questions arising in the administration or interpretation of this Plan and such determination shall be final and binding upon all persons. 

E-5

   
PRIVATE 

Exhibit (10)(iii)(A)(5)

	IMPERIAL OIL LIMITED

EARNINGS BONUS UNIT AWARD	 	2002

	

	Name of Grantee:

Number of IEBUs:

Maximum Settlement Value per IEBU: $3.00

Maximum Settlement Value of Award: $	 	Grant Date: Nov. 20, 2002

IEBU No:

Empl. No:
	

        This IMPERIAL EARNINGS BONUS UNIT (IEBU) AWARD is granted by Imperial Oil Limited (the "Company") effective November 20, 2002, (the "Grant Date"). This
Award is subject to the provisions herein stated and the Imperial Oil Limited Earnings Bonus Unit Plan (the "Plan") and is granted on the conditions that Grantee accepts such provisions. This Grant
Instrument incorporates by reference the provisions of the Plan, as it may be amended from time to time, including without limitation the definitions of terms used in this Grant Instrument and defined
in the Plan.

	1.
	AWARD  

This
incentive is provided by the grant of Imperial Oil Limited Earnings Bonus Units ("IEBUs"), which gives the Grantee the right, subject to the terms and conditions herein, to receive a cash payment
from the Company equal to the Maximum Settlement Value per IEBU, when the cumulative basic net earnings per common share of the Company reach at least the Maximum Settlement Value per IEBU prior to
the fifth anniversary of the Grant Date, or equal to the cumulative basic net earnings per common share ending on the last full quarter that precedes the fifth anniversary of the Grant Date if the
cumulative basic net earnings per common share do not reach the Maximum Settlement Value per IEBU. 

	2.
	SETTLEMENT DATE AND DEFERRED PAYMENTS  

The
Settlement Date of these IEBUs shall be the earlier of the fifth anniversary of the Grant Date, or the date of publication of the Company's quarterly earnings statements which bring the cumulative
basic net earnings per common share as initially published commencing with the first full quarter following the Grant Date to an amount at least equal to the Maximum Settlement Value per IEBU
specified above; provided, however, in the discretion of the Company, payment may be deferred as specified by the Grantee based on options for such deferral provided to the Grantee by the Company. 

	3.
	ASSIGNMENT  

No
right created by the granting of an IEBU can be pledged in any circumstance, nor can it be assigned except in the case of death. Any attempt to pledge or assign may, in the discretion of the
Company, result in forfeiture of the rights created herein. 

	 	 	IMPERIAL OIL LIMITED
	

 	

 	
/s/ T. J. Hearn
	

 	

 	

Chairman, President and

Chief Executive Officer

E-6

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Exhibit (10)(iii)(A)(7) 

  

 
 

Imperial Oil Limited    
    
   

 
 

RESTRICTED
  STOCK UNIT
  PLAN    
  

E-7

 

1.    Plan Purpose:  

        The purpose of the Restricted Stock Unit Plan (the "Plan") is to provide an incentive to selected key employees and to nonemployee directors to promote optimum
individual contribution to sustained improvement in the Company's business performance and shareholder value, and to motivate them to remain with the Company, its wholly owned subsidiaries or a
Designated Employer, as these terms are defined in clause 4 of this Plan document. 

2.    Description of Units:  

        This incentive is provided by the grant of Restricted Stock Units ("RSU"), which give the Plan participant the right, subject to the terms and conditions herein,
to receive from the Company, upon exercise in the prescribed manner, an amount in respect of each RSU, which is equal to the Exercise Price, as defined in clause 4. 

3.    Eligibility and Awards:  

        RSU's will be granted only to key employees and to nonemployee directors of the Company or to key employees of a Designated Employer, as defined in
clause 4. Frequency and level of awards to individual participants will be determined by the Company. Individual awards under this plan will not necessarily be granted annually. The entitlement
to the formula amounts of benefits in clause 2 and clause 6 arises from services rendered from the Grant Date to the date of payment. 

E-8

 

4.    Definitions:  

        In this Plan document, except where the context otherwise indicates, the following definitions apply: 

	(a)
	"Company"
means Imperial Oil Limited.

	(b)
	"Continued
Employment" means continued employment after the RSU Grant Date with any one or more of the Company, its wholly owned subsidiaries or a Designated Employer, and for
nonemployee directors means the period of time while serving as a director of Imperial Oil Limited.

	(c)
	"Designated
Employer" means an employer which is an affiliate of the Company and which is designated as such for the purposes of this Plan by the Company.

	(d)
	"Exercise
Date" means, in respect of an RSU being exercised pursuant to clause 8, the dates on which the RSU is vested, the date of death of a Grantee or the date of deferral
of exercise, as applicable.

	(e)
	"Exercise
Price" for a particular RSU means the closing price of common shares of the Company on the Toronto Stock Exchange on the Exercise Date, or if there is no closing price on
the Exercise Date, the last preceding closing price on the Toronto Stock Exchange. 

E-9

 

	(f)
	"Grant
Date" means the date specified in the Grant Instrument that an RSU is granted under the Plan.

	(g)
	"Grant
Instrument" means the document given by the Company to an employee and nonemployee director governing a grant of Restricted Stock Units.

	(h)
	"Grantee"
means the recipient of a Grant Instrument.

	(i)
	"Dividend
Equivalents" means cash payments pursuant to clause 6 corresponding in amount and timing to the cash dividend that is paid by the Company on a common share of the
Company.

	(j)
	"Legal
Representatives" means a Grantee's executors or administrators. 

5.    Vesting of Units:  

        Subject to the restrictions in clause 7 or the deferral of exercise in clause 8, the total RSU's granted under a particular Grant Instrument
vest and become exercisable in accordance with the following schedule: 

	(a)
	50%
of the RSU's will be exercised on the third anniversary following the Grant Date.

	(b)
	The
remaining 50% of the RSU's will be exercised on the seventh anniversary following the Grant date. 

E-10

 

6.    Dividend Equivalents:  

        The Company will pay the Grantee cash with respect to each unexercised RSU granted to the Grantee corresponding in amount and timing to the cash dividend that is
paid by the Company on a common share of the Company. 

7.    Restrictions on Exercise:  

	(a)
	No
RSU will be exercised other than in accordance with the provisions of clauses 5, 7 and 8.

	(b)
	Except
as provided hereinafter, an RSU will be exercised only during Continued Employment.

	(c)
	In
case the Grantee becomes entitled on or after the Grant Date to payment of extended disability benefits under the Company's extended disability benefit plan, the RSU's or the
balance remaining will be exercised in accordance with the provisions of clause 5.

	(d)
	In
case of death of the Grantee, the unexercised RSU's will be exercised by the Company as of the date of death and paid to the Grantee's Legal Representatives.

	(e)
	In
case the Grantee's Continued Employment terminates on or after, the third anniversary of the Grant Date and the Grantee becomes entitled to an annuity under section 2 of the
Company's retirement plan (or the provision in any plan or plans of the Company substituted therefor), the 

E-11

 

RSU's
or the balance remaining will be exercised by the Company in accordance with the provisions of clauses 5, 7 and 8. 

	(f)
	Notwithstanding
anything to the contrary in this Plan, the Company, at its discretion, may determine that the Grantee's RSU's, or the balance remaining, are forfeited and are not
exercisable as a consequence of any of the following situations:

	(i)
	the
Company believes that the Grantee intends to terminate Continued Employment and sub-clauses 7(c), 7(d) and 7(e) would not be
applicable, or

	(ii)
	during
Continued Employment or during the period of 24 months after the termination of the Grantee's Continued Employment, the Grantee, without
the written consent of the Company, directly or indirectly is employed in, or as principal, agent, partner or otherwise engages in any business that is in competition with the Company, as determined
by the Company, or otherwise engages in any activity that is detrimental to the Company, as determined by the Company. 

	(g)
	Except
as provided in sub-clauses 7(c), 7(d), and 7(e), the RSU's, or the balance remaining, if not forfeited earlier, will be forfeited and will not be
exercisable after the last day of Continued Employment. 

E-12

 

	(h)
	Notwithstanding
any other provision of this clause 7, the Company may determine that a Grantee's RSU's will not be forfeited in whole or in part after the cessation of
Continued Employment. 

8.    Method and Deferral of Exercise:  

        The RSU's will be exercised by the Company in accordance with clauses 5 and 7, provided however, the Company may, at its discretion, defer the
exercise of any RSU's to a later date in the event that a ban on trading, imposed by the Company or applicable law, in common shares of the Company by a director of the Company or an employee of the
Company, its wholly owned subsidiaries or a Designated Employer is in effect on the exercise dates described in clauses 5 and 7. 

9.    Method of Payment:  

	(a)
	Cash
payment of the benefit arising on the exercise of an RSU will normally be made as soon as practicable after the Exercise Date.

	(b)
	Cash
payment of the Dividend Equivalents described in clause 6 will be made as soon as practicable after the Company pays a dividend on the common shares of the Company.

	(c)
	Payments
will be reduced by any amount required to be withheld by any government authority. 

E-13

 

10.  Repayments:  

        Notwithstanding the exercise of an RSU by the Grantee, in the event any of the situations described in sub-clause 7(f)(ii) are applicable to the
Grantee, the Company, at its discretion, may require the Grantee to repay to the Company any cash payments resulting from the exercise of that RSU during a period up to 180 days prior to
termination of the Grantee's Continued Employment. 

11.  Significant Changes:  

        In the case of any subdivision, consolidation, or reclassification of the shares of the Company or other relevant change in the capitalization of the Company, the
Company, in its discretion, may make appropriate adjustments in the calculation of the amount payable per RSU, and an adjustment by the Company shall be conclusive as to the amount payable per RSU and
shall be final and binding upon all persons. 

12.  Other:  

	(a)
	An
RSU award does not carry any benefits associated with the Company's benefit plans.

	(b)
	No
right created by the granting of an RSU can be pledged in any circumstance, nor can it be assigned. Any attempt to pledge or assign may, in the discretion of the Company, result in
forfeiture of the rights created herein. 

E-14

 

	(c)
	A
Restricted Stock Unit means a unit equivalent in value to a common share of the Company, credited by means of a book entry on the Company's books.

	(d)
	Under
no circumstances shall the RSU's be considered common shares or other securities of the Company, nor shall they entitle any Grantee to exercise voting rights or any other rights
attaching to the ownership of the common shares or other securities of the Company, nor shall any grantee be considered the owner of the common shares by virtue of the award of the RSU's.

	(e)
	The
Company will determine conclusively all questions arising in the administration or interpretation of this Plan and such a determination shall be final and binding upon all
persons.   

Imperial
Oil Limited

December, 2002 

E-15

  

PRIVATE 

Exhibit (10)(iii)(A)(7)

 
 

IMPERIAL OIL LIMITED
  2002 RESTRICTED STOCK UNITS
  Grant Date: December 31, 2002    
  

	

	Name of Grantee:	Number of Units:
	Grant No:	Empl. No:
	

	

 	

 	

 
	

The following is a summary of the provisions of the Restricted Stock Unit Plan. In all cases, the text of the Plan will govern in the event of any discrepancy, inconsistency or omission between this Grant Instrument and the Plan text.
	
1.	

GRANT
	

 	

The Company hereby grants to you, as of the date hereof, the number of 2002 Restricted Stock Units ("RSU") as set out above, subject to the terms and conditions of the Restricted Stock Unit Plan.
	
2.	

2002 RSU
	

 	

Each 2002 RSU granted to you gives you the conditional right to receive from the Company, upon exercise, an amount equal to the Exercise Price.
	
3.	

DIVIDEND EQUIVALENTS
	

 	

The Company will pay to you cash with respect to each unexercised 2002 RSU corresponding in amount and timing to the cash dividend that is paid by the Company on a common share of the Company.
	
4.	

DEFINITIONS
	

 	

In this summary the following definitions apply:
	

 	

(a)	

"Company" means Imperial Oil Limited.
	

 	

(b)	

"Exercise Price" means the closing price of common shares of the Company on the Toronto Stock Exchange on the Exercise Date.
	

 	

(c)	

"Exercise Date" means the day on which the RSU is exercised by the Company as prescribed in the Plan text.
	
5.	

DATES EXERCISED
	

 	

Subject to the expiry, forfeiture and deferral of exercise provisions summarized under clauses 7 and 8 of the Plan document, the 2002 RSU's granted to you will be exercised by the Company on the following basis:
	

 	

•	

No 2002 RSU's will be exercised before December 31, 2005.
	

 	

•	

50% of the 2002 RSU's will be exercised on December 31, 2005.
	

 	

•	

The remaining 50% of the 2002 RSU's will be exercised on December 31, 2009.
	
6.	

EXPIRY AND FORFEITURE
	

 	

This RSU grant shall expire or be forfeited at the earliest of the following times:
	

 	

(a)	

On termination of employment from the Company or an affiliate of the Company (as defined in the Plan text), other than by reason of retirement on or after December 31, 2005, or other than by reason of death or disability on or after
December 31, 2002.
	

 	

(b)	

The Company believes that you intend to terminate employment with the Company or if during employment with the Company or during the 24 months after the termination of your employment you, without the written consent of the Company, were engaged
in any business that was in competition with the Company or otherwise engaged in any activity that was detrimental to the Company.
	
7.	

ASSIGNMENT
	

 	

No right created by the grant of a 2002 RSU can be pledged in any circumstance, nor can it be assigned and any attempt to do so may result in forfeiture of the grant.
	
8.	

REPAYMENT
	

 	

In the event that this award is exercised, in whole or in part, and during employment with the Company or during the period of 24 months after the termination of your employment you, without the written consent of the Company, were engaged in
any business that was in competition with the Company or otherwise engaged in any activity that was detrimental to the Company, the Company may require payment to the Company, for that part of the award exercised during the 180 day period prior
to the date of termination of employment with the Company.

	 	IMPERIAL OIL LIMITED
	

 	

/s/ T.J. Hearn
	

 	
Chairman, President and

Chief Executive Officer

E-16

  

PRIVATE 

Exhibit (10)(iii)(A)(7)

 
 

IMPERIAL OIL LIMITED
  RESTRICTED STOCK UNITS
  Grant Date: December 31, 2002    
  

	

	Name of Grantee:	Number of Units:
	Grant No:	 
	

	

 	

 	

 
	

The following is a summary of the provisions of the Restricted Stock Unit Plan. In all cases, the text of the Plan will govern in the event of any discrepancy, inconsistency or omission between this Grant Instrument and the Plan text.
	
1.	

GRANT
	

 	

The Company hereby grants to you, as of the date hereof, the number of 2002 Restricted Stock Units ("RSU") as set out above, subject to the terms and conditions of the Restricted Stock Unit Plan.
	
2.	

2002 RSU
	

 	

Each 2002 RSU granted to you gives you the conditional right to receive from the Company, upon exercise, an amount equal to the Exercise Price.
	
3.	

DIVIDEND EQUIVALENTS
	

 	

The Company will pay to you cash with respect to each unexercised 2002 RSU corresponding in amount and timing to the cash dividend that is paid by the Company on a common share of the Company.
	
4.	

DEFINITIONS
	

 	

In this summary the following definitions apply:
	

 	

(a)	

"Company" means Imperial Oil Limited.
	

 	

(b)	

"Exercise Price" means the closing price of common shares of the Company on the Toronto Stock Exchange on the Exercise Date.
	

 	

(c)	

"Exercise Date" means the day on which the RSU is exercised by the Company as prescribed in the Plan text.
	

 	

(d)	

"Continued Employment" means continued employment after the RSU Grant Date with any one or more of the Company, its wholly owned subsidiaries or a Designated Employer, and for nonemployee directors means the period of time while serving as a director
of Imperial Oil Limited.
	
5.	

DATES EXERCISED
	

 	

Subject to the expiry, forfeiture and deferral of exercise provisions summarized under clauses 7 and 8 of the Plan document, the 2002 RSU's granted to you will be exercised by the Company on the following basis:
	

 	

•	

No 2002 RSU's will be exercised before December 31, 2005.
	

 	

•	

50% of the 2002 RSU's will be exercised on December 31, 2005.
	

 	

•	

The remaining 50% of the 2002 RSU's will be exercised on December 31, 2009.
	
6.	

EXPIRY AND FORFEITURE
	

 	

This RSU grant shall expire or be forfeited at the earliest of the following times:
	

 	

(a)	

On termination of employment from the Company or an affiliate of the Company (as defined in the Plan text), other than by reason of retirement on or after December 31, 2005, or other than by reason of death or disability on or after
December 31, 2002.
	

 	

(b)	

The Company believes that you intend to terminate continued employment with the Company or if during employment with the Company or during the 24 months after the termination of your continued employment you, without the written consent of the
Company, were engaged in any business that was in competition with the Company or otherwise engaged in any activity that was detrimental to the Company.
	
7.	

ASSIGNMENT
	

 	

No right created by the grant of a 2002 RSU can be pledged in any circumstance, nor can it be assigned and any attempt to do so may result in forfeiture of the grant.
	
8.	

REPAYMENT
	

 	

In the event that this award is exercised, in whole or in part, and during continued employment with the Company or during the period of 24 months after the termination of your continued employment you, without the written consent of the Company,
 were engaged in any business that was in competition with the Company or otherwise engaged in any activity that was detrimental to the Company, the Company may require payment to the Company, for that part of the award exercised during the
180 day period prior to the date of termination of continued employment with the Company.

	 	IMPERIAL OIL LIMITED
	

 	

/s/ T.J. Hearn
	

 	
Chairman, President and

Chief Executive Officer

E-17

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Imperial Oil Limited

RESTRICTED STOCK UNIT PLAN

IMPERIAL OIL LIMITED 2002 RESTRICTED STOCK UNITS Grant Date: December 31, 2002

IMPERIAL OIL LIMITED RESTRICTED STOCK UNITS Grant Date: December 31, 2002

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