Document:

Filed by Bowne Pure Compliance

Exhibit 10.12.2

DEFINED CONTRIBUTION MAKE-UP PLAN

OF

CONOCOPHILLIPS

TITLE II

(Effective for benefits earned or vested after

December 31, 2004)

2008 RESTATEMENT

The Defined Contribution Make-Up Plan of ConocoPhillips is intended to provide certain specified
benefits to Highly Compensated Employees whose benefits under the ConocoPhillips Savings Plan might
otherwise be limited. Title I of this Plan is effective with regard to benefits earned and vested
prior to January 1, 2005, while Title II of this Plan is effective with regard to benefits earned
or vested after December 31, 2004. Earnings, gains, and losses shall be allocated to the Title of
the Plan to which the underlying obligations giving rise to them are allocated.

This Title II of the Plan is intended (1) to comply with Code section 409A, as enacted as part of
the American Jobs Creation Act of 2004, and official guidance issued thereunder, and (2) to be “a
plan which is unfunded and is maintained by an employer primarily for the purpose of providing
deferred compensation for a select group of management or highly compensated employees” within the
meaning of sections 201(2), 301(a)(3), and 401(a)(1) of ERISA. Notwithstanding any other provision
of this Plan, this Plan shall be interpreted, operated, and administered in a manner consistent
with these intentions.

 

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Section 1. Definitions.

For purposes of the Plan, the following terms, as used herein, shall have the meaning specified:

	(a)	 	“Allocation Ratio” shall mean the ratio determined by dividing (i) an amount equal to the
total value of the unallocated shares of Stock allocated to Stock Savings Feature participants
and beneficiaries as of a Stock Savings Feature Semiannual Allocation Date or Supplemental
Allocation Date (as defined in the CPSP) by (ii) an amount equal to the total net Stock
Savings Feature employee deposits used in the calculation of the Stock Savings Feature
Semiannual Allocation or Supplemental Allocation (as defined in the CPSP).

	(b)	 	“Beneficiary” shall mean a person or persons designated by a Participant to receive, in the
event of death, any unpaid portion of a Participant’s Benefit from this Plan. Any Participant
may designate one or more persons primarily or contingently as beneficiaries in writing upon
forms supplied by and delivered to the Company, and may revoke such designations in writing.
If a Participant fails to properly designate a beneficiary, then the Benefits will be paid in
the following order of priority:

	 	(i)	 	Surviving spouse; then

	 
	 	(ii)	 	Surviving children in equal shares; then
	 
	 	(iii)	 	To the estate of the Participant.

	(c)	 	“Benefit” shall mean an obligation of the Company to pay amounts from this Plan.

	(d)	 	“Board” shall mean the Board of Directors of the Company, as it may be comprised from time to
time.

	(e)	 	“Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, or any
successor statute.

	(f)	 	“Company” shall mean ConocoPhillips Company, a Delaware corporation, or any successor
corporation. The Company is a subsidiary of ConocoPhillips.

	(g)	 	“ConocoPhillips” shall mean ConocoPhillips, a Delaware corporation, or any successor
corporation. ConocoPhillips is a publicly held corporation and the parent of the

 

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	 	 	 Company.

	(h)	 	“Controlled Group” shall mean ConocoPhillips and its Subsidiaries.

	(i)	 	“CPSP” shall mean the ConocoPhillips Savings Plan.

	 
	(j)	 	“CPSP Pay” shall mean “Pay” as defined in the CPSP.

	(k)	 	“DCMP Pay” shall mean
 “Pay” as defined in the CPSP without regard to Pay Limitations or
voluntary salary reduction under provisions of the KEDCP.

	(l)	 	“Election Form” shall mean a written form, including one in electronic format, provided by
the Plan Administrator pursuant to which a Participant may elect the time and form of payment
of his or her Benefit.

	(m)	 	“Employee” shall mean any individual who is a salaried employee of the Company or any
Participating Subsidiary.

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

	(o)	 	“Frozen Plan” shall mean Title I of the Defined Contribution Make-Up Plan of ConocoPhillips.

	(p)	 	“Highly Compensated Employee” shall mean an Employee whose DCMP Pay exceeds the amount set
forth in Code section 401(a)(17), as amended from time to time, or who is eligible to elect a
voluntary salary reduction under the provisions of the KEDCP.

	(q)	 	“Investment Options” shall mean the investment options, as determined from time to time by
the Plan Administrator, used to credit earnings, gains, and losses on Supplemental Thrift
Feature Account and Supplemental Stock Savings Feature Account balances.

	(r)	 	“KEDCP” shall mean the Key Employee Deferred Compensation Plan of ConocoPhillips or any
similar or successor plan maintained by a member of the Controlled Group.

	(s)	 	“Leveraged Stock Fund” shall mean an Investment Option under this Plan that is accounted for
as if investments were made in the common stock, $0.01 par value, of ConocoPhillips, although
no such actual investments need be made, with accounting entries being sufficient therefor.

 

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	(t)	 	“Ongoing Plan” shall mean Title II of the Defined Contribution Make-Up Plan of
ConocoPhillips.

	(u)	 	“Participant” shall mean an Employee who is eligible to receive a Benefit from this Plan as a
result of being a Highly Compensated Employee and any person for whom a
Supplemental Thrift Feature Account and/or a Supplemental Stock Savings Feature Account is
maintained.

	(v)	 	“Participating Subsidiary” shall mean a Subsidiary which has adopted the CPSP, and one or
more Employees of which are Participants eligible to make deposits to the CPSP, or are
eligible for Benefits pursuant to this Plan.

	(w)	 	“Pay Limitations” shall mean the compensation limitations applicable to the CPSP that are set
forth in Code section 401(a)(17), as adjusted.

	(x)	 	“Plan” shall mean the Defined Contribution Make-Up Plan of ConocoPhillips. The Plan is
sponsored and maintained by the Company.

	(y)	 	“Plan Administrator” shall mean the Manager, Compensation and Benefits, of the Company, or
his successor.

	(z)	 	“Plan Year” means January 1 through December 31.

	(aa)	 	“Separation from Service” shall mean the date on which the Participant separates from service
with the Controlled Group within the meaning of Code section 409A, whether by reason of death,
disability, retirement, or otherwise. In determining Separation from Service, with regard to
a bona fide leave of absence that is due to any 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 six months, where such impairment causes the Employee to be unable to
perform the duties of his or her position of employment or any substantially similar position
of employment, a 29-month period of absence shall be substituted for the six-month period set
forth in section 1.409A-1(h)(1)(i) of the regulations issued under section 409A of the Code,
as allowed thereunder.

	(bb)	 	“Stock” shall mean shares of common stock, $0.01 par value, issued by ConocoPhillips.

	 
	(cc)	 	“Stock Savings Feature” shall mean the Stock Savings Feature of the CPSP.

 

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	(dd)	 	“Subsidiary” shall mean any corporation or other entity that is treated as a single employer
with ConocoPhillips under section 414(b) or (c) of the Code. In applying section 1563(a)(1),
(2), and (3) of the Code for purposes of determining a controlled group of corporations under
section 414(b) of the Code and for purposes of determining trades or businesses (whether or
not incorporated) under common control under regulation section 1.414(c)-2 for purposes of section 414(c) of the Code, the language “at
least 80%” shall be used without substitution as allowed under regulations pursuant to
section 409A of the Code.

	(ee)	 	“Supplemental Stock Savings Contributions” shall mean an amount equal to 1% of the amount of
the Participant’s DCMP Pay for a Plan Year that is in excess of the Participant’s CPSP Pay for
such Plan Year.

	(ff)	 	“Supplemental Stock Savings Feature Account” shall mean the Plan Benefit account of a
Participant that reflects the portion of his or her Benefit that is intended to replace
certain Stock Savings Feature benefits to which the Participant might otherwise be entitled
but for the application of the Pay Limitations and/or a voluntary salary reduction under the
KEDCP.

	(gg)	 	“Supplemental Thrift Contributions” shall mean an amount equal to 1.25% of the amount of the
Participant’s DCMP Pay for a Plan Year that is in excess of the Participant’s CPSP Pay for
such Plan Year.

	(hh)	 	“Supplemental Thrift Feature Account” shall mean the Plan Benefit account of a Participant
which reflects the portion of his or her Benefit which is intended to replace certain Thrift
Feature benefits to which the Participant might otherwise be entitled but for the application
of the Pay Limitations and/or a voluntary salary reduction under the KEDCP.

	(ii)	 	“Thrift Feature” shall mean the Thrift Feature of the CPSP.

	(jj)	 	“Trustee” shall mean the trustee of the grantor trust established by the Trust Agreement
between the Company (known then as Phillips Petroleum Company) and Wachovia Bank, N.A. dated
as of June 1, 1998, or any successor trustee.

	(kk)	 	“Valuation Date” shall mean “Valuation Date” as defined in the CPSP.

 

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Section 2. Purpose.

The purpose of this Plan is to provide supplemental benefits for those Highly Compensated Employees
whose benefits under the CPSP might otherwise be affected by Pay Limitations or by a voluntary
reduction in salary under provisions of KEDCP.

Section 3. Eligibility.

Benefits may only be granted to Highly Compensated Employees.

Section 4. Supplemental Thrift Feature Account Benefits.

For any payroll period in which a Highly Compensated Employee’s DCMP Pay exceeds his or her CPSP
Pay, a Benefit amount shall be credited to a Highly Compensated Employee’s Supplemental Thrift
Feature Account for the Ongoing Plan no later than the end of the month following the Valuation
Date that Company contributions are made to the Highly Compensated Employee’s Thrift Feature
account, or would have been made to such account if the Highly Compensated Employee had received
Company contributions under the Thrift Feature. The Benefit amount so credited shall equal 1.25%
of the amount by which the Highly Compensated Employee’s DCMP Pay for that payroll period exceeds
his or her CPSP Pay for that payroll period.

Section 4.1 Supplemental Thrift Feature Account Earnings.

The Company shall periodically credit earnings, gains, and losses to a Participant’s Supplemental
Thrift Feature Account, until the full balance of such Account has been distributed. Earnings,
gains, and losses shall be credited to a Participant’s Supplemental Thrift Feature Account under
this Section based on the results that would have been achieved had amounts credited to such

 

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Account
been invested as soon as practicable after crediting into Investment Options selected by
the Participant. The Plan Administrator shall specify procedures to allow Participants to make
elections as to the deemed investment of amounts newly credited to their Supplemental Thrift
Feature Accounts, as well as the deemed investment of amounts previously credited to their
Supplemental Thrift Feature Accounts. Nothing in this Section or otherwise in the Plan, however,
will require the Company to actually invest any amounts in such Investment Options or otherwise.

Section 5. Supplemental Stock Savings Feature Account Benefits.

For each month in which a Semiannual or Supplemental Allocation (as defined in the CPSP) is made to
a Highly Compensated Employee’s Stock Savings Feature Account, or would have been made to such
account if the Highly Compensated Employee had received a Semiannual or Supplemental Allocation, a
Benefit amount shall be credited to his or her Supplemental Stock Savings Feature Account. The
Benefit amount to be credited shall be calculated in shares in the Leveraged Stock Fund of this
Plan and shall be equal to (i) the Highly Compensated Employee’s Supplemental Stock Savings
Contributions during the applicable Allocation Period (as defined in the CPSP) multiplied by the
applicable Allocation Ratio, divided by (ii) the share value for the Leveraged Stock Fund of the
CPSP on the applicable Allocation Date (as defined in the CPSP). This amount shall be credited no
later than the end of the month following the Valuation Date that a Semiannual Allocation or
Supplemental Allocation is made under the Stock Savings Feature, or would have been made had the
Highly Compensated Employee received such a Semiannual Allocation or Supplemental Allocation under
the Stock Savings Feature. A share in the Leveraged Stock Fund of this Plan shall have a value
equivalent to a share in the Leveraged Stock Fund of the CPSP.

 

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Section 5.1
Supplemental Stock Savings Feature Account Earnings.

After being initially invested in the Leveraged Stock Fund account, the amounts in the
Participant’s Supplemental Stock Savings Feature Account shall thereafter be eligible to be
invested in Investment Options selected by the Participant. The Company shall periodically credit
earnings, gains and losses to a Participant’s Supplemental Stock Savings Feature Account, until the
full balance of such Account has been distributed. Earnings, gains, and losses shall be credited
to a Participant’s Supplemental Stock Savings Feature Account under this Section based on the
results that would have been achieved had amounts credited to such Account been invested as soon as
practicable after crediting into the Leveraged Stock Fund of this Plan or the Investment Options
selected by the Participant. The Plan Administrator shall specify procedures to allow Participants
to make elections as to the deemed investment of amounts previously credited to their Supplemental
Stock Savings Feature Accounts. Nothing in this Section or otherwise in the Plan, however, will
require the Company to actually invest any amounts in Stock or in such Investment Options or
otherwise.

Section 6. Payment.

In the absence of an effective election under Section 6.1 or Section 6.2, Benefits that a
Participant is eligible to receive under the Ongoing Plan (and earnings, gains, and losses thereon)
shall normally be paid in one lump sum payment on the date that is six months after the date of the
Participant’s Separation from Service. Furthermore, in the absence of an effective election under
Section 6.1 or Section 6.2, if the Participant dies prior to his or her Separation from Service, or
after his or her Separation from Service but prior to the date that the Benefits which the
Participant is eligible to receive under the Ongoing Plan (and earnings, gains, and losses thereon)
commence to be paid, the Benefits that the Participant is eligible to receive under the Ongoing
Plan (and earnings, gains, and losses thereon) shall be paid in one lump sum cash payment to the
Participant’s Beneficiary on the date of the Participant’s death.

 

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Section 6.1 Payment Election by Participant.

A Participant may elect on an Election Form delivered to the Plan Administrator at a time set by
the Plan Administrator (which shall be prior to the beginning of the Plan Year) to have the amounts
attributable to Benefits under the Ongoing Plan that are credited to his or her
Supplemental Thrift Feature Account (and earnings, gains, and losses thereon) with respect to such
Plan Year and the amounts attributable to Benefits credited to his or her Supplemental Stock
Savings Feature Account (and earnings, gains, and losses thereon) with respect to such Plan Year
paid to the Participant in either:

	(a)	 	one lump sum payment, or

	(b)	 	annual, semi-annual, or quarterly installments, using a declining balance method, over a
period ranging from one to fifteen years.

A Participant may elect to have payments commence as of the beginning of any calendar quarter that
is at least one year after the date of the Participant’s Separation from Service, provided that no
payment shall be made after the date that is twenty years after the date of the Participant’s
Separation from Service.

Section 6.2 Change in Time or Form of Payment.

A Participant may make an election to change the time or form of payment elected under Section 6.1
or the payment to be made under Section 6, but only if the following rules are satisfied:

	(a)	 	The election to change the time or form of payment may not take effect until at least
twelve months after the date on which such election is made;

	 
	(b)	 	Payment under such election may not be made earlier than at least five years from the
date the payment would have otherwise been made or commenced;

	 
	(c)	 	Such payment may commence as of the beginning of any calendar quarter;

 

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	(d)	 	An election to receive payments in installments shall be treated as a single payment
for purposes of these rules;

	 
	(e)	 	The election may not result in an impermissible acceleration of payment prohibited
under Code section 409A;

	 
	(f)	 	No more than four such elections shall be permitted with respect to Benefits credited
to a Participant’s Accounts for a Plan Year; and

	 
	(g)	 	No payment may be made after the date that is twenty (20) years after the date of the
Participant’s Separation from Service.

Section 6.3 Effect of Taxation.

If a portion of a Participant’s Benefit (and earnings, gains, and losses thereon) is includible in
income under Code section 409A, such portion shall be distributed immediately to the Participant.

Section 7. Administration.

	(a)	 	The Plan shall be administered by the Plan Administrator. The Plan Administrator may delegate
to employees of the Company or any member of the Controlled Group the authority to execute and
deliver such instruments and documents, to do all such acts and things, and to take such other
steps deemed necessary, advisable, or convenient for the effective administration of the Plan
in accordance with its terms and purpose, except that the Plan Administrator may not delegate
any discretionary authority with respect to substantive decisions or functions regarding the
Plan or Benefits hereunder.

	(b)	 	Any claim for benefits hereunder shall be presented in writing to the Plan Administrator for
consideration, grant, or denial. Claimants will be notified in writing of approved claims,
which will be processed as claimed. A claim is considered approved only if its approval is
communicated in writing to a claimant.

 

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	(c)	 	In the case of a denial of a claim respecting benefits paid or payable with respect to a
Participant, a written notice will be furnished to the claimant
within 90 days of the date on
which the claim is received by the Plan Administrator. If special circumstances (such as for
a hearing) require a longer period, the claimant will be notified in writing, prior to the
expiration of the 90-day period, of the reasons for an extension of time; provided,
however, that no extensions will be permitted beyond 90 days after the expiration of the
initial 90-day period. A denial or partial denial of a claim will be dated and signed by
the Plan Administrator and will clearly set forth:

	 	(1)	 	the specific reason or reasons for the denial;

	 
	 	(2)	 	specific reference to pertinent Plan provisions on which the denial is
based;

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

	 
	 	(4)	 	an explanation of the procedure for review of the denied or partially
denied claim set forth below, including the claimant’s right to bring a civil
action under ERISA section 502(a) following an adverse benefit determination on
review.

	(d)	 	Upon denial of a claim, in whole or in part, a claimant or his duly authorized representative
will have the right to submit a written request to the Trustee for a full and fair review of
the denied claim by filing a written notice of appeal with the Trustee within 60 days of the
receipt by the claimant of written notice of the denial of the claim. A claimant or the
claimant’s authorized representative will have, upon request and free of charge, reasonable
access to, and copies of, all documents, records, and other information relevant to the
claimant’s claim for benefits and may submit issues and comments in writing. The review will
take into account all comments, documents, records, and other information submitted by the
claimant relating to the claim, without regard to whether such information was submitted or
considered in the initial benefit determination. If the claimant fails to file a request for
review within 60 days of the denial notification, the

 

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	 	 	claim will be deemed abandoned and the
claimant precluded from reasserting it. If the claimant does file a request for review, his
request must include a description of the issues and evidence he deems relevant. Failure to
raise issues or present evidence on review will preclude those issues or evidence from being
presented in any subsequent proceeding or
judicial review of the claim.

	(e)	 	The Trustee will provide a prompt written decision on review. If the claim is denied on
review, the decision shall set forth:

	 	(1)	 	the specific reason or reasons for the adverse determination;

	 
	 	(2)	 	specific reference to pertinent Plan provisions on which the adverse
determination is based;

	 
	 	(3)	 	a statement that the claimant is entitled to receive, upon request and
free of charge, reasonable access to, and copies of, all documents, records, and
other information relevant to the claimant’s claim for benefits; and

	 
	 	(4)	 	a statement describing any voluntary appeal procedures offered by the
Plan and the claimant’s right to obtain the information about such procedures, as
well as a statement of the claimant’s right to bring an action under ERISA section
502(a).

	(f)	 	A decision will be rendered no more than 60 days after the Trustee’s receipt of the request
for review, except that such period may be extended for an additional 60 days if the Trustee
determines that special circumstances (such as for a hearing) require such extension. If an
extension of time is required, written notice of the extension will be furnished to the
claimant before the end of the initial 60-day period.

	(g)	 	To the extent permitted by law, decisions reached under the claims procedures set forth in
this Section shall be final and binding on all parties. No legal action for benefits under the
Plan shall be brought unless and until the claimant has exhausted his remedies under this
Section. In any such legal action, the claimant may only present evidence and theories

 

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	 	 	which
the claimant presented during the claims procedure. Any claims which the claimant does not in
good faith pursue through the review stage of the procedure shall be treated as having been
irrevocably waived. Judicial review of a claimant’s denied claim shall be limited to a
determination of whether the denial was an abuse of discretion based on the
evidence and theories the claimant presented during the claims procedure.

Section 8. Rights of Employees and Participants.

Nothing contained in the Plan (or in any other documents related to this Plan or to any Benefit)
shall confer upon any Employee or Participant any right to continue in the employ or other service
of the Company or any member of the Controlled Group or constitute any contract or limit in any way
the right of the Company or any member of the Controlled Group to change such person’s compensation
or other benefits or to terminate the employment of such person with or without cause.

Section 9. Awards in Foreign Countries.

The Board or its delegate shall have the authority to adopt such modifications, procedures, and
subplans as may be necessary or desirable to comply with provisions of the laws of foreign
countries in which the Company or Participating Subsidiaries may operate to assure the viability of
the Benefits of Participants employed in such countries and to meet the purpose of this Plan.

Section 10. Amendment and Termination.

The Board reserves the right to amend or terminate this Plan at any time, and to delegate such
authority as the Board deems necessary or desirable; provided that no member of the Board who is
also a Participant shall participate in any action which has the actual or potential effect of
increasing his or her Benefits hereunder; and further provided, the Company shall remain liable for
any Benefits accrued under this Plan prior to the date of amendment or termination.

 

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Section 11. Unfunded Plan.

All amounts payable under this Plan shall be paid solely from the general assets of the Company and
any rights accruing to a Participant under the Plan shall be those of a general creditor; provided,
however, that the Company may establish one or more grantor trusts to satisfy part or all of the
Company’s Plan payment obligations so long as the Plan remains unfunded for purposes of sections
201(2), 301(a)(3), and 401(a)(1) of ERISA.

Section 12. Miscellaneous Provisions.

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

	(b)	 	This Ongoing Plan replaces the Frozen Plan, which was frozen effective as of December 31,
2004. The distribution of amounts that were earned and vested (within the meaning of Code
section 409A and official guidance issued thereunder) under the Frozen Plan prior to January
1, 2005 (and earnings thereon) and are exempt from the requirements of Code section 409A shall
be made in accordance with the terms of the Frozen Plan as in effect on December 31, 2004.

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

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

 

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

	(f)	 	It is the intention of the Company that, so long as any of ConocoPhillips’ equity securities
are registered pursuant to Section 12(b) or 12(g) of the Securities Exchange Act of 1934, this
Plan shall be operated in compliance with 16(b) and, if any Plan provision or transaction is
found not to comply with Section 16(b), that provision or transaction, as the case may be,
shall be deemed null and void ab initio. Notwithstanding anything in the Plan to the
contrary, the Company, in its absolute discretion, may bifurcate the Plan so as to restrict,
limit or condition the use of any provision of the Plan to Participants who are officers and
directors subject to Section 16(b) without so restricting, limiting or conditioning the Plan
with respect to other Participants.

Section
13. Effective Date of the Restated Plan.

Title II of the Plan is amended and restated as set forth in this 2008 Restatement effective as of
January 1, 2005.

Executed this 19th day of December 2008, effective as of January 1, 2005, with respect
to benefits earned and vested after December 31, 2004.

	 	 	 
	/s/ Carin S. Knickel
 

Carin S. Knickel

	 	 
	Vice President, Human Resources
	 	 

 

-15-Filed by Bowne Pure Compliance

Exhibit 10.21.2

KEY EMPLOYEE DEFERRED COMPENSATION PLAN OF

CONOCOPHILLIPS

TITLE II

(Effective for benefits earned or vested after

December 31, 2004)

2008 RESTATEMENT

PURPOSE

The purpose of the Key Employee Deferred Compensation Plan of ConocoPhillips (the “Plan”) is to
attract and retain key employees by providing them with an opportunity to defer receipt of cash
amounts which otherwise would be paid to them under various compensation programs or plans by a
Participating Subsidiary. Title I of this Plan is effective with regard to benefits earned and
vested prior to January 1, 2005, while Title II of this Plan is effective with regard to benefits
earned or vested after December 31, 2004. Earnings, gains, and losses shall be allocated to the
Title of the Plan to which the underlying obligations giving rise to them are allocated. The Plan
is sponsored and maintained by ConocoPhillips Company.

This Title II of the Plan is intended (1) to comply with Code section 409A, as enacted as part of
the American Jobs Creation Act of 2004, and official guidance issued thereunder, and (2) to be “a
plan which is unfunded and is maintained by an employer primarily for the purpose of providing
deferred compensation for a select group of management or highly compensated employees” within the
meaning of sections 201(2), 301(a)(3), and 401(a)(1) of ERISA. Notwithstanding any other provision
of this Plan, this Plan shall be interpreted, operated, and administered in a manner consistent
with these intentions.

 

 

 

SECTION 1. Definitions.

	 	(a)	 	“Award” shall mean the United States cash dollar amount (i) allotted to an Employee
under the terms of an Incentive Compensation Plan or a Long Term Incentive Plan, or (ii)
required to be credited to an Employee’s Deferred Compensation Account pursuant to the
terms of an Award or of an Incentive Compensation Plan, the Long Term Incentive
Compensation Plan, the Strategic Incentive Plan, a Long Term Incentive Plan, or any similar
plans, or any administrative procedure adopted pursuant thereto, or (iii) credited as a
result of an Employee’s voluntary reduction of Salary, or (iv) any other amount determined
by the Committee to be an Award under the Plan.

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

	 	(c)	 	“Committee” shall mean the Compensation Committee of the Board of Directors of
ConocoPhillips.

	 	(d)	 	“Company” shall mean ConocoPhillips Company, a Delaware corporation, or any successor
corporation. The Company is a subsidiary of ConocoPhillips.

	 	(e)	 	“ConocoPhillips” shall mean ConocoPhillips, a Delaware corporation, or any successor
corporation. ConocoPhillips is a publicly held corporation and the parent of the Company.

	 	(f)	 	“Controlled Group” shall mean ConocoPhillips and its Subsidiaries.

	 	(g)	 	“Deferred Compensation Account” shall mean an account established and maintained for
each Participant in which is recorded the amounts of Awards deferred by a Participant, the
deemed gains, losses, and earnings accrued thereon, and payments made therefrom all in
accordance with the terms of the Plan.

 

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	 	(h)	 	“Election Form” shall mean a written form, including one in electronic format, provided
by the Plan Administrator pursuant to which a Participant may elect the time and form of
payment of his or her Benefit.

	 	(i)	 	“Employee” shall mean any individual who is a salaried employee of the Company or of a
Participating Subsidiary who is eligible to receive an Award from an Incentive Compensation
Plan and is classified as a ConocoPhillips salary grade 19 or above or any equivalent
salary grade at a Participating Subsidiary.

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

	 	(k)	 	“Heritage Conoco Employee” shall mean an individual employed by Conoco Inc., Conoco
Pipe Line Company, or Louisiana Gas Systems Inc. prior to January 1, 2003; provided,
however, that an individual who has been terminated from employment with a member of the
Controlled Group at any time and rehired by a member of the Controlled Group after
January 1, 2003, shall not be considered a Heritage Conoco Employee for purposes of this
Plan.

	 	(l)	 	“Incentive Compensation Plan” shall mean the ConocoPhillips Variable Cash Incentive
Program, the Incentive Compensation Plan of Phillips Petroleum Company, or the Annual
Incentive Compensation Plan of Phillips Petroleum Company, the Special Incentive Plan for
Former Tosco Executives, the Conoco Inc. Global Variable Compensation Plan, or a similar
plan of a Participating Subsidiary, or any similar or successor plans, or all, as the
context may require.

	 	(m)	 	“Long-Term Incentive Compensation Plan” shall mean the Long-Term Incentive Compensation
Plan of Phillips Petroleum Company, which was terminated December 31, 1985.

 

- 3 -

 

	 	(n)	 	“Long-Term Incentive Plan” shall mean the ConocoPhillips Performance Share Program, the
ConocoPhillips Restricted Stock Program, the Phillips Petroleum Company Long-Term Incentive
Plan, or a similar or successor plan of any of them, established under an Omnibus
Securities Plan.

	 	(o)	 	“Omnibus Securities Plan” shall mean the 2004 Omnibus Stock and Performance Incentive
Plan of ConocoPhillips, the 2002 Omnibus Securities Plan of Phillips Petroleum Company, the
Omnibus Securities Plan of Phillips Petroleum Company, the 1998 Stock and Performance
Incentive Plan of ConocoPhillips, the 1998 Key Employee Stock Plan of ConocoPhillips, or a
similar or successor plan of any of them.

	 	(p)	 	“Participant” shall mean a person for whom a Deferred Compensation Account is
maintained.

	 	(q)	 	“Participating Subsidiary” shall mean a Subsidiary that has adopted one or more plans
making participants eligible for participation in this Plan and one or more Employees of
which are Potential Participants.

	 	(r)	 	“Plan Administrator” shall mean the Vice President, Human Resources of the Company, or
his or her successor.

	 	(s)	 	“Potential Participant” shall mean a person who has received a notice specified in
Section 2.

	 	(t)	 	“Restricted Stock” and “Restricted Stock Units” shall mean respectively shares of Stock
and units each of which shall represent a hypothetical share of Stock, which have certain
restrictions attached to the ownership thereof or the delivery of shares pursuant thereto.

 

- 4 -

 

	 	(u)	 	“Retirement” or “Retire” or “Retiring” shall mean Separation from Service from the
Controlled Group on or after age 55 or above and on or after the earliest early retirement
date as defined in applicable title of the ConocoPhillips Retirement Plan or of the
applicable retirement plan of a Participating Company.

	 	(v)	 	“Schedule A Employee” shall mean an Employee whose name appears in Schedule A attached
to and made a part of this Plan.

	 	(w)	 	“Separation from Service” shall mean the date on which the Participant separates from
service with the Controlled Group within the meaning of Code section 409A, whether by
reason of death, disability, retirement, or otherwise. In determining Separation from
Service, with regard to a bona fide leave of absence that is due to any 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 six months, where such
impairment causes the Employee to be unable to perform the duties of his or her position of
employment or any substantially similar position of employment, a 29-month period of
absence shall be substituted for the six-month period set forth in section
1.409A-1(h)(1)(i) of the regulations issued under section 409A of the Code, as allowed
thereunder.

	 	(x)	 	“Settlement Date” shall mean the date on which all acts under an Incentive Compensation
Plan or the Long-Term Incentive Compensation Plan or actions directed by the Committee, as
the case may be, have been taken which are necessary to make an Award payable to the
Participant.

	 	(y)	 	“Salary” shall mean the monthly equivalent rate of pay for an Employee before
adjustments for any before-tax voluntary reductions.

	 	(z)	 	“Stock” means shares of common stock of ConocoPhillips, par value $.01.

 

- 5 -

 

	 	(aa)	 	“Strategic Incentive Plan” shall mean the Strategic Incentive Plan portion of the 1986
Stock Plan of Phillips Petroleum Company, of the 1990 Stock Plan of Phillips Petroleum
Company, of the Phillips Petroleum Company Omnibus Securities Plan, and of any successor
plans of similar nature.

	 	(bb)	 	“Subsidiary” shall mean any corporation or other entity that is treated as a single
employer with ConocoPhillips under section 414(b) or (c) of the Code. In applying section
1563(a)(1), (2), and (3) of the Code for purposes of determining a controlled group of
corporations under section 414(b) of the Code and for purposes of determining trades or
businesses (whether or not incorporated) under common control under regulation section
1.414(c)-2 for purposes of section 414(c) of the Code, the language “at least 80%” shall be
used without substitution as allowed under regulations pursuant to section 409A of the
Code.

	 	(cc)	 	“Trustee” shall mean the trustee of the grantor trust established by the Trust
Agreement between Phillips Petroleum Company (now renamed ConocoPhillips Company) and
Wachovia Bank, N.A. dated as of June 1, 1998, or any successor trustee.

SECTION 2. Notification of Potential Participants.

	 	(a)	 	Incentive Compensation Plan. With regard to each year, at such times as
the Plan Administrator may determine, Employees who are eligible to receive an Award in
the immediately following calendar year under an Incentive Compensation Plan will be
notified and given the opportunity to make an election, using the Election Form or in
such other manner prescribed by the Plan Administrator, to defer all or part of such
Award.

	 	(b)	 	Salary Reduction. With regard to each year, at such times as the Plan
Administrator may determine, Employees on the U.S. dollar payroll will be notified and
given the opportunity to make an election, using the Election Form or in such other
manner

 

- 6 -

 

	 	 	 	prescribed by the Plan Administrator, to make a voluntary reduction of Salary for each
pay period of the following calendar year, in which case the Company will credit a like
amount as an Award hereunder, provided that the amount of such voluntary reduction shall
not be less than 1% nor more than 50% of the Employee’s Salary per pay period.

SECTION 3. Election to Defer Award or Reduce Salary.

	 	(a)	 	Incentive Compensation Plan. If a Potential Participant elects to defer
under this Plan all or any part of the Award to which a notice received under Section
2(a) pertains, the Potential Participant must make such election, using the Election Form
or in such other manner prescribed by the Plan Administrator. The Potential
Participant’s election shall become irrevocable on December 31 of the year in which said
Section 2(a) notice was received (except in the case of an election for an Award under an
Incentive Compensation Plan determined by the Plan Administrator to be “performance-based
compensation” under Code section 409A, the election shall become irrevocable on June 30
of the year in which said Section 2(a) notice was received), subject to the provisions
Section 5(d). If an election is not properly made and timely received, the Potential
Participant will be deemed to have elected to receive and not to defer any such Incentive
Compensation Plan Award.

	 	(b)	 	Salary Reduction. If a Potential Participant elects to voluntarily reduce
Salary to which a notice received under Section 2(b) pertains and receive an Award
hereunder in lieu thereof, the Potential Participant must make an election, using the
Election Form or in such other manner prescribed by the Plan Administrator, which must be
received on or before December 31 (or such earlier time as may be prescribed by the Plan
Administrator) prior to the beginning of the calendar year of the elected deferral. Such
election must be in writing signed by the Potential Participant, and must state the
amount of the salary reduction the Potential Participant elects. Such election becomes
irrevocable on December 31 prior to the beginning of the calendar year, subject to the
provisions Section 5(d). If an election is not properly made and timely

 

- 7 -

 

	 	 	 	received, the Potential Participant will be deemed to have elected to receive and not to
defer any such Salary.

SECTION 4. Deferred Compensation Accounts.

	 	(a)	 	Credit for Deferral. Amounts deferred pursuant to Section 3(a) will be
credited to a Deferred Compensation Account for the Participant for the calendar year in
which the amounts are deferred not less than 30 days after the Settlement Date of the
Incentive Compensation Plan.

If an Award in the form of Restricted Stock or Restricted Stock Units provides that, in
certain instances the Restricted Stock or Restricted Stock Units shall be cancelled and
a market value in lieu thereof be credited to a Deferred Compensation Account for the
Participant, then the market value shall be credited to a Deferred Compensation Account
for the Participant as of the day that the Award in the form of Restricted Stock or
Restricted Stock Units is cancelled. The market value of the underlying Restricted
Stock or the shares represented by the Restricted Stock Units awarded under a Long Term
Incentive Plan, under an Incentive Compensation Plan that began on or after January 1,
2003, under an Omnibus Securities Plan (with regard to awards made on or after January
1, 2003), and for the Special Stock Awards issued on October 22, 2002, shall be the
monthly average Fair Market Value of the Stock during the calendar month preceding the
month in which the restrictions lapse or shares are to be delivered as applicable. The
monthly average Fair Market Value of the Stock is the average of the daily Fair Market
Value of the Stock for each trading day of the month. For Awards made prior to those
times, the market value of the underlying Restricted Stock or the shares represented by
the Restricted Stock Units, as applicable, shall be based on the higher of (i) the
average of the high and low selling prices of the Stock on the date the restrictions
lapse or the last trading day before the day the restrictions lapse if such date is not
a trading day or (ii) the average of the high three monthly Fair Market Values of the
Stock during the twelve calendar months preceding the month in which the restrictions
lapse. The

 

- 8 -

 

	 	 	 	monthly Fair Market Value of the Stock is the average of the daily Fair Market Value of
the Stock for each trading day of the month. The daily Fair Market Value of the Stock
shall be deemed equal to the average of the high and low selling prices of the Stock on
the New York Stock Exchange.

Amounts deferred pursuant to other provisions of this Plan shall be credited to a
Deferred Compensation Account for the Participant for the calendar year in which such
amounts are deferred not later than 30 days after the date the Award or Salary would
otherwise be payable.

	 	(b)	 	Designation of Investments. The amount in each Deferred Compensation
Account of a Participant shall be deemed to have been invested and reinvested from time
to time, in such “eligible securities” as the Participant shall designate. Prior to or
in the absence of a Participant’s designation, the Company shall designate an “eligible
security” in which the Participant’s Deferred Compensation Account shall be deemed to
have been invested until designation instructions are received from the Participant.
Eligible securities are those securities designated by the Chief Financial Officer of
ConocoPhillips, or his successor. The Chief Financial Officer of ConocoPhillips may
include as eligible securities, stocks listed on a national securities exchange, and
bonds, notes, debentures, corporate or governmental, either listed on a national
securities exchange or for which price quotations are published in The Wall Street
Journal and shares issued by investment companies commonly known as “mutual funds.” The
Deferred Compensation Accounts of a Participant will be adjusted to reflect the deemed
gains, losses, and earnings as though the amount deferred was actually invested and
reinvested in the eligible securities for each Deferred Compensation Account of the
Participant.

Notwithstanding anything to the contrary in this section 4(b), in the event the
Company (or any trust maintained for this purpose) actually purchases or sells such
securities in the quantities and at the times the securities are deemed to be
purchased or sold for a Deferred Compensation Account of a Participant, the

 

- 9 -

 

	 	 	 	Account shall be adjusted accordingly to reflect the price actually paid or received
by the Company for such securities after adjustment for all transaction expenses
incurred (including without limitation brokerage fees and stock transfer taxes).

In the case of any deemed purchase not actually made by the Company, the Deferred
Compensation Account shall be charged with a dollar amount equal to the quantity and
kind of securities deemed to have been purchased multiplied by the fair market value
of such security on the date of reference and shall be credited with the quantity and
kind of securities so deemed to have been purchased. In the case of any deemed sale
not actually made by the Company, the account shall be charged with the quantity and
kind of securities deemed to have been sold, and shall be credited with a dollar
amount equal to the quantity and kind of securities deemed to have been sold
multiplied by the fair market value of such security on the date of reference. As
used in this paragraph “fair market value” means in the case of a listed security the
closing price on the date of reference, or if there were no sales on such date, then
the closing price on the nearest preceding day on which there were such sales, and in
the case of an unlisted security the mean between the bid and asked prices on the date
of reference, or if no such prices are available for such date, then the mean between
the bid and asked prices to the nearest preceding day for which such prices are
available.

The Plan Administrator may designate a third party to provide services that may
include record keeping, Participant accounting, Participant communication, payment of
installments to the Participant, tax reporting, and any other services specified in an
agreement with such third party.

	 	(c)	 	Payments. A Participant’s Deferred Compensation Account shall be debited with
respect to payments made from the account pursuant to this Plan as of the date such
payments are made from the account. Payments shall be made on the dates specified in the
elections of the Participant; provided, however, that the Participant shall have no right
to complain or make a claim about the date of a payment if such payment is

 

- 10 -

 

	 	 	 	made no earlier than 30 days prior to the specified date and no later than the end of
the calendar year in which such specified date falls (or, if later, by the
15th day of the third calendar month following the specified date).

If any person to whom a payment is due hereunder is under legal disability as determined
in the sole discretion of the Plan Administrator, the Plan Administrator shall have the
power to cause the payment due such person to be made to such person’s guardian or other
legal representative for the person’s benefit, and such payment shall constitute a full
release and discharge of the Company, all members of the Controlled Group, the Plan
Administrator, and any fiduciary of the Plan.

	 	(d)	 	Statements. At least one time per year the Plan Administrator (or a third
party acting for the Plan Administrator) will furnish each Participant a written
statement setting forth the current balance in the Participant’s Deferred Compensation
Account, the amounts credited or debited to such account since the last statement and the
payment schedule of deferred Awards, and deemed gains, losses, and earnings accrued
thereon as provided by the deferred payment option selected by the Participant. This
provision shall be deemed satisfied if the Plan Administrator (or a third party acting
for the Plan Administrator) makes such information available through electronic means,
such as a web site, and informing affected Participants of the availability of the
information and the manner of accessing it.

SECTION 5. Payments from Deferred Compensation Accounts.

	 	(a)	 	Election of Method of Payment. At the time a Potential Participant submits
an election to defer all or any part of an Award under an Incentive Compensation Plan as
provided in Section 3(a) above or to reduce any part of salary as provided in Section
3(b) above, the Potential Participant shall also elect, using the Election Form or in
such other manner prescribed by the Plan Administrator, which of the payment options,
provided for in Paragraph (b) of this Section, shall apply to the deferred portion of
said Award or salary adjusted for any deemed gains, losses, and earnings

  

- 11 -

 

	 	 	 	 accrued thereon credited to the Participant’s Deferred Compensation
Account under this Plan. Subject to Paragraph (d) of this Section, the election of the
method of payment of the amount deferred shall become irrevocable on December 31 of the
year in which the applicable Section 2(a) or (b) notice was received (except in the
case of an election for an Award under an Incentive Compensation Plan determined by the
Plan Administrator to be “performance-based compensation” under Code section 409A, the
election shall become irrevocable on June 30 of the year in which said Section 2(a) or
(b) notice was received). If an election does not properly indicate a time and method
of payment, the Potential Participant will be deemed to have elected to receive such
payment in a single lump sum at the earlier of death or six months after Separation
from Service other than by death.

	 	(b)	 	Payment Options. A Potential Participant may elect, using an Election Form
or in such other manner prescribed by the Plan Administrator, to have the deferred
portion of an Incentive Compensation Plan Award or salary adjusted for any deemed gains,
losses, and earnings accrued thereon paid:

	 	(i)	 	(After Separation from Service) in 1 to 15 annual installments, in 2 to
30 semi-annual installments, or in 4 to 60 quarterly installments, the payment of
the first of any of such installments to commence on the first day of the first
calendar quarter which is on or after one year from the Participant’s Separation
from Service and is no longer than five years from the Participant’s Separation
from Service, subject to Paragraph (d) of this Section, or

	 	(ii)	 	(Date Certain) with regard only to the deferred portion of an Incentive
Compensation Award, in 1 to 15 annual installments, in 2 to 30 semi-annual
installments, or in 4 to 60 quarterly installments, the payment of the first of any
of such installments to commence on the first day of calendar quarter which is
designated by the Participant, is at least one year after the date on which the
election is made, and is not later than the 65th birthday of the
Participant, subject to Paragraph (d) of this Section.

 

- 12 -

 

	 	(iii)	 	In the event that no election is properly and timely made with regard
to the time and method of payment under Section 5(b)(i), payment shall be made on
the earlier of the death or the date which is the first of the calendar quarter
following six months after the date of Separation from Service, whether by
retirement, disability, or otherwise (other than by death), of the Participant,
subject to Paragraph (d) of this Section.

	 	(c)	 	Method of Payment of the Value of Restricted Stock and Restricted Stock
Units. If an Award in the form of Restricted Stock or Restricted Stock Units
provides that, in certain instances the Restricted Stock or Restricted Stock Units shall
be cancelled and a market value in lieu thereof be credited to a Deferred Compensation
Account for the Participant, payment of such Deferred Compensation Account shall be made
on the earlier of the death or the date which is the first of the calendar quarter
following six months after the date of Separation from Service, whether by retirement,
disability, or otherwise (than death), of the Participant, subject to Paragraph (d) of
this Section.

	 	(d)	 	Change in Time or Form of Payment. A Participant may make an election to
change the time or form of payment elected or set under Section 5 (including this
Paragraph (d)), but only if the following rules are satisfied:

	 	(1)	 	The election to change the time or form of payment may not take
effect until at least twelve months after the date on which such election is made;

	 	(2)	 	Payment under such election may not be made earlier than at least
five years from the date the payment would have otherwise been made or commenced;

	 	(3)	 	Such payment may commence as of the beginning of any calendar
quarter;

	 	(4)	 	An election to receive payments in installments shall be treated as a
single payment for purposes of these rules;

	 	(5)	 	The election may not result in an impermissible acceleration of
payment prohibited under Code section 409A;

 

- 13 -

 

	 	(6)	 	No more than four such elections shall be permitted with respect to
each Deferred Compensation Account of a Participant; and

	 	(7)	 	No payment may be made after the date that is twenty (20) years after
the date of the Participant’s Separation from Service.

	 	(e)	 	Effect of Taxation. If a portion of a Participant’s Benefit (and earnings,
gains, and losses thereon) is includible in income under Code section 409A, such portion
shall be distributed immediately to the Participant.

	 	(f)	 	Installment Amount. The amount of each installment shall be determined by
dividing the balance in the Participant’s Deferred Compensation Account as of the date
the installment is to be paid, by the number of installments remaining to be paid
(inclusive of the current installment).

	 	(g)	 	Death of Participant. Upon the death of a Participant, the Participant’s
beneficiary or beneficiaries designated in accordance with Section 8, or in the absence
of an effective beneficiary designation, the surviving spouse, surviving children
(natural or adopted) in equal shares, or the Estate of the deceased Participant, in that
order of priority, shall receive payments in accordance with the payment option selected
by the Participant or, if no payment option was properly and timely selected by the
Participant with regard to a Deferred Compensation Account, upon the death of the
Participant.

SECTION 6. Special Provisions for Former ARCO Alaska Employees.

Notwithstanding any provisions to the contrary, in order to comply with the terms of the
Master Purchase and Sale Agreement (“Sale Agreement”) by which the Company acquired certain
Alaskan assets of Atlantic Richfield Company (“ARCO”), a Participant who was eligible to
participate in the ARCO employee benefit plans immediately prior to becoming an Employee and
who was not employed by ARCO Marine, Inc. (a “former ARCO Alaska employee”) and who was
classified as a grade 7 or 8 under ARCO’s job classification

 

- 14 -

 

system and was eligible under ARCO’s Executive Deferral Plan to voluntarily reduce salary and
defer the amount of the voluntary salary reduction and who was classified as a grade 31 or
below at that time under Phillips Petroleum Company’s job classification system may, in a
manner prescribed by the Plan Administrator, make an election to voluntarily reduce salary
and defer the amount of the voluntary salary reduction for salary received for 2005 and
receive a salary deferral credit under this Plan; provided, that all of the Plan provisions
(other than eligibility to participate) shall apply to such an election.

SECTION 7. Schedule A Employees.

Notwithstanding any earlier election or indication of preference to participate in voluntary
salary reductions to be deferred into the Plan in 2005 or deferrals into the Plan in 2005 of
Awards under an Incentive Compensation Plan, Schedule A Employees shall have their
participation in the Plan for 2005 revoked as to the salary reductions or Incentive
Compensation Plan Award or both, as indicated on Schedule A to this Plan. Any such deferrals
made in 2005 for such Schedule A Employees shall be returned to them (together with any
earnings, gains, or losses thereon) on or before December 31, 2005.

SECTION 8. Designation of Beneficiary.

Each Participant shall designate a beneficiary or beneficiaries to receive the entire balance
of the Participant’s Deferred Compensation Account by giving signed written notice of such
designation to the Plan Administrator. The Participant may from time to time change or
cancel any previous beneficiary designation in the same manner. The last beneficiary
designation received by the Plan Administrator shall be controlling over any prior
designation and over any testamentary or other disposition. After acceptance by the Plan
Administrator of such written designation, it shall take effect as of the date on which it
was signed by the Participant, whether the Participant is living at the time of such receipt,
but without prejudice to the Company or any member of the Controlled Group or the Plan
Administrator or their respective employees and agents on account of
any payment made under
this Plan before receipt of such designation.

 

- 15 -

 

SECTION 9. Nonassignability.

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

SECTION 10. Administration.

	 	(a)	 	The Plan shall be administered by the Plan Administrator. The Plan Administrator may
delegate to employees of the Company or any member of the Controlled Group the authority to
execute and deliver such instruments and documents, to do all such acts and things, and to
take such other steps deemed necessary, advisable, or convenient for the effective
administration of the Plan in accordance with its terms and purpose, except that the Plan
Administrator may not delegate any discretionary authority with respect to substantive
decisions or functions regarding the Plan or Benefits hereunder. The Plan Administrator
may adopt such rules, regulations, and forms as deemed desirable for administration of the
Plan and shall have the discretionary authority to allocate responsibilities under the Plan
to such other persons as may be designated.

	 	(b)	 	Any claim for benefits hereunder shall be presented in writing to the Plan
Administrator for consideration, grant, or denial. Claimants will be notified in writing
of approved claims, which will be processed as claimed. A claim is considered approved
only if its approval is communicated in writing to a claimant.

	 	(c)	 	In the case of a denial of a claim respecting benefits paid or payable with respect to
a Participant, a written notice will be furnished to the claimant within 90 days of the
date on which the claim is received by the Plan Administrator. If special circumstances
(such as for a hearing) require a longer period, the claimant will be notified in writing,
prior to the expiration of the 90-day period, of the reasons for an

 

- 16 -

 

	 	 	 	extension of time; provided, however, that no extensions will be permitted beyond 90
days after the expiration of the initial 90-day period. A denial or partial denial of a
claim will be dated and signed by the Plan Administrator and will clearly set forth:

	 	(1)	 	the specific reason or reasons for the denial;

	 	(2)	 	specific reference to pertinent Plan provisions on which the denial is
based;

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

	 	(4)	 	an explanation of the procedure for review of the denied or partially
denied claim set forth below, including the claimant’s right to bring a civil
action under ERISA section 502(a) following an adverse benefit determination on
review.

	 	(d)	 	Upon denial of a claim, in whole or in part, a claimant or his duly authorized
representative will have the right to submit a written request to the Trustee for a full
and fair review of the denied claim by filing a written notice of appeal with the Trustee
within 60 days of the receipt by the claimant of written notice of the denial of the claim.
A claimant or the claimant’s authorized representative will have, upon request and free of
charge, reasonable access to, and copies of, all documents, records, and other information
relevant to the claimant’s claim for benefits and may submit issues and comments in
writing. The review will take into account all comments, documents, records, and other
information submitted by the claimant relating to the claim, without regard to whether such
information was submitted or considered in the initial benefit determination. If the
claimant fails to file a request for review within 60 days of the denial notification, the
claim will be deemed abandoned and the claimant precluded from reasserting it. If the
claimant does file a request for review, his request must include a description of the
issues and evidence he deems relevant. Failure to raise issues or present evidence on
review will preclude those issues or evidence from being presented in any subsequent
proceeding or judicial review of the claim.

 

- 17 -

 

	 	(e)	 	The Trustee will provide a prompt written decision on review. If the claim is denied
on review, the decision shall set forth:

	 	(1)	 	the specific reason or reasons for the adverse determination;

	 	(2)	 	specific reference to pertinent Plan provisions on which the adverse
determination is based;

	 	(3)	 	a statement that the claimant is entitled to receive, upon request and
free of charge, reasonable access to, and copies of, all documents, records, and
other information relevant to the claimant’s claim for benefits; and

	 	(4)	 	a statement describing any voluntary appeal procedures offered by the
Plan and the claimant’s right to obtain the information about such procedures, as
well as a statement of the claimant’s right to bring an action under ERISA section
502(a).

	 	(f)	 	A decision will be rendered no more than 60 days after the Trustee’s receipt of the
request for review, except that such period may be extended for an additional 60 days if
the Trustee determines that special circumstances (such as for a hearing) require such
extension. If an extension of time is required, written notice of the extension will be
furnished to the claimant before the end of the initial 60-day period.

	 	(g)	 	To the extent permitted by law, decisions reached under the claims procedures set forth
in this Section shall be final and binding on all parties. No legal action for benefits
under the Plan shall be brought unless and until the claimant has exhausted his remedies
under this Section. In any such legal action, the claimant may only present evidence and
theories which the claimant presented during the claims procedure. Any claims which the
claimant does not in good faith pursue through the review stage of the procedure shall be
treated as having been irrevocably waived. Judicial review of a claimant’s denied claim
shall be limited to a determination of whether the denial was an abuse of discretion based
on the evidence and theories the claimant presented during the claims procedure.

 

- 18 -

 

SECTION 11. Employment not Affected by Plan.

Participation or nonparticipation in this Plan shall neither adversely affect any person’s
employment status nor confer any special rights on any person other than those expressly
stated in the Plan. Participation in the Plan by an Employee of the Company or of a
Participating Subsidiary shall not affect the Company’s or any Controlled Group member’s
right to terminate the Employee’s employment or to change the Employee’s compensation or
position.

SECTION 12. Determination of Recipients of Awards.

The determination of those persons who are entitled to Awards under an Incentive Compensation
Plan and any other such plans shall be governed solely by the terms and provisions of the
applicable plan or program, and the selection of an Employee as a Potential Participant or
the acceptance of an indication of preference to defer an Award hereunder shall not in any
way entitle such Potential Participant to an Award.

SECTION 13. Method of Providing Payments.

	 	(a)	 	Nonsegregation. Amounts deferred pursuant to this Plan and the crediting
of amounts to a Participant’s Deferred Compensation Account shall represent the Company’s
unfunded and unsecured promise to pay compensation in the future. With respect to said
amounts, the relationship of the Company and a Participant shall be that of debtor and
general unsecured creditor. While the Company may make investments for the purpose of
measuring and meeting its obligations under this Plan such investments shall remain the
sole property of the Company subject to claims of its creditors generally, and shall not
be deemed to form or be included in any part of the Deferred Compensation Account.

	 	(b)	 	Funding. It is the intention of the Company that this Plan shall be
unfunded for federal tax purposes and for purposes of Title I of ERISA; provided,
however, that the

 

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	 	 	 	Company may establish a grantor trust to satisfy part or all of its Plan payment
obligations so long as the Plan remains unfunded for federal tax purposes and for
purposes of Title I of ERISA.

SECTION 14. Amendment or Termination of Plan.

The Company reserves the right to amend this Plan from time to time or to terminate the Plan
entirely, provided, however, that no amendment may affect the balance in a Participant’s
account on the effective date of the amendment.

SECTION 15. Miscellaneous Provisions.

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

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

	 	(c)	 	It is the intention of the Company that, so long as any of ConocoPhillips’ equity
securities are registered pursuant to Section 12(b) or 12(g) of the Securities Exchange
Act of 1934, this Plan shall be operated in compliance with 16(b) and, if any Plan
provision or transaction is found not to comply with Section 16(b), that provision or
transaction, as the case may be, shall be deemed null and void ab initio.
Notwithstanding anything in the Plan to the contrary, the Company, in its absolute
discretion, may bifurcate the Plan so as to restrict, limit or condition the use of any
provision of the Plan to Participants who are officers and directors subject to Section
16(b) without so restricting, limiting or conditioning the Plan with respect to other
Participants.

 

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SECTION 16. Effective Date of the Restated Plan.

Title II of the Plan is amended and restated as set forth in this 2008 Restatement effective
as of January 1, 2005.

Executed this 19th day of December 2008, effective as of January 1, 2005, with respect
to benefits earned and vested after December 31, 2004.

	 	 	 
	/s/ Carin S. Knickel
	 	 
	 

Carin S. Knickel

	 	 
	Vice President, Human Resources
	 	 

 

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