Document:

EXHIBIT 10(d)(viii)

 

Cabot Corporation

Amended and Restated Deferred Compensation Plan

Master Plan Document

 

Table of Contents

	
  1.

  	
   

  	
  In General

  	
   

  	
  3

  
	
  2.

  	
   

  	
  Defined Terms

  	
   

  	
  3

  
	
   

  	
   

  	
  2.1.

  	
  “Account”

  	
   

  	
  3

  
	
   

  	
   

  	
  2.2.

  	
  “Administrator”

  	
   

  	
  3

  
	
   

  	
   

  	
  2.3.

  	
  “Board”

  	
   

  	
  3

  
	
   

  	
   

  	
  2.4.

  	
  “Code”

  	
   

  	
  3

  
	
   

  	
   

  	
  2.5.

  	
  “Consultant”

  	
   

  	
  3

  
	
   

  	
   

  	
  2.6.

  	
  “Director”

  	
   

  	
  3

  
	
   

  	
   

  	
  2.7.

  	
  “Director Fees”

  	
   

  	
  3

  
	
   

  	
   

  	
  2.8.

  	
  “Earnings Measure”

  	
   

  	
  3

  
	
   

  	
   

  	
  2.9.

  	
  “Eligible Employee”

  	
   

  	
  4

  
	
   

  	
   

  	
  2.10.

  	
  “Eligible Pay”

  	
   

  	
  4

  
	
   

  	
   

  	
  2.11.

  	
  “Employer”

  	
   

  	
  4

  
	
   

  	
   

  	
  2.12.

  	
  “ERISA”

  	
   

  	
  4

  
	
   

  	
   

  	
  2.13.

  	
  “Moody’s Rate”

  	
   

  	
  4

  
	
   

  	
   

  	
  2.14.

  	
  “Participant”

  	
   

  	
  4

  
	
   

  	
   

  	
  2.15.

  	
  “RSP”

  	
   

  	
  5

  
	
   

  	
   

  	
  2.16.

  	
  “Subsidiary”

  	
   

  	
  5

  
	
  3.

  	
   

  	
  Deferral Election

  	
   

  	
  5

  
	
   

  	
   

  	
  (a)

  	
  In general

  	
   

  	
  5

  
	
   

  	
   

  	
  (b)

  	
  First year of participation

  	
   

  	
  5

  
	
   

  	
   

  	
  (c)

  	
  Limits

  	
   

  	
  5

  
	
   

  	
   

  	
  (d)

  	
  Form of election; irrevocability

  	
   

  	
  5

  
	
   

  	
   

  	
  (e)

  	
  Special rules for Directors

  	
   

  	
  6

  
	
  4.

  	
   

  	
  Accounts; Credits

  	
   

  	
  6

  
	
   

  	
   

  	
  (a)

  	
  Deferral credits

  	
   

  	
  6

  
	
   

  	
   

  	
  (b)

  	
  Notional earnings

  	
   

  	
  6

  
	
   

  	
   

  	
  (c)

  	
  FICA/Medicare taxes, etc

  	
   

  	
  7

  
	
  5.

  	
   

  	
  Payment of Deferred Amounts

  	
   

  	
  7

  
	
   

  	
   

  	
  (a)

  	
  Form and timing of distributions; in general

  	
   

  	
  7

  
	
   

  	
   

  	
  (b)

  	
  Key Employees

  	
   

  	
  8

  
	
   

  	
   

  	
  (c)

  	
  Distributions upon death

  	
   

  	
  9

  
	
   

  	
   

  	
  (d)

  	
  Unforeseeable Emergency

  	
   

  	
  9

  
	
   

  	
   

  	
  (e)

  	
  Computation of installment payments, etc

  	
   

  	
  9

  
	
   

  	
   

  	
  (f)

  	
  Section 162(m)

  	
   

  	
  11

  
	
   

  	
   

  	
  (g)

  	
  Taxes

  	
   

  	
  11

  
	
  6.

  	
   

  	
  Assignment

  	
   

  	
  11

  
	
  7.

  	
   

  	
  Plan To Be Unfunded, Etc

  	
   

  	
  11

  
	
  8.

  	
   

  	
  No Contract of Employment

  	
   

  	
  12

  
	
  9.

  	
   

  	
  Amendment and Termination

  	
   

  	
  12

  

 

 1
 

 

	
  10.

  	
   

  	
  Section 409A

  	
   

  	
  12

  
	
  11.

  	
   

  	
  Limitation of Liability

  	
   

  	
  12

  
	
  12.

  	
   

  	
  Administration of the Plan

  	
   

  	
  12

  

 

 2
 

 

Cabot Corporation

 

Amended and Restated
Deferred Compensation Plan

 

1.             In General.  This document amends, restates and continues
the Cabot Corporation Deferred Compensation Plan (the “Plan”), which was
originally established effective January 1, 1995 and amended effective June 1,
1997 by Amendment 1997-1.  The purpose of
the Plan is to further the business interests of Cabot Corporation (the “Company”)
by providing eligible employees and non-employee directors an opportunity to
defer some or all of their compensation on an unfunded, nonqualified basis as
hereinafter provided.  The provisions of
this amended and restated Plan are effective as of January 1, 2005.

2.             Defined Terms.  As used in the Plan, the following terms have
the meanings associated with them below:

2.1.          “Account”.  A memorandum account maintained by the
Administrator to reflect the Employer’s unfunded deferred compensation
obligation to a Participant hereunder, including where the context requires any
sub-account.

2.2.          “Administrator”.  The Benefits Committee of the Company, whose
members are appointed by the Compensation Committee of the Board and serve at
the Compensation Committee’s pleasure, or such other committee, person or
persons as the Board may designate.  The
term “Administrator” shall also include delegates of any of the foregoing.

2.3.          “Board”.  The Board of Directors of the Company.

2.4.          “Code”.  The Internal Revenue Code of 1986, as
amended.

2.5.          “Consultant”.  An individual performing consulting services
for an Employer (other than as an employee) who is designated by the
Administrator as eligible to participate in the Plan, provided that such
designation has not been revoked by the Administrator.

2.6.          “Director”.  Any member of the Board other than an
employee of any Employer.

2.7.          “Director Fees”.  The cash annual retainer fees and any meeting
fees paid by the Company as compensation for services on the Board or any
committee thereof.

2.8.          “Earnings Measure”.  An interest rate, stock index, bond index,
mutual fund or other objective external measure of investment performance
specified by the Administrator for purposes of measuring and crediting notional
earnings under Section 4(b) below.  In
the case of Eligible Pay deferred by a Director, the Earnings Measure

 3
 

 

applied under
Section 4(b) below shall be limited to one of the following:  (i) a notional interest rate equal (for each
year) to the Moody’s Rate for such year, or (ii) deemed investment in (i.e.
phantom units of) common stock of the Company. 
If the Earnings Measure is based on the Moody’s Rate, all Eligible Pay
deferred by a Director during a calendar year shall be credited to the Director’s
Account as of the first day of such calendar year.  If the Earnings Measure is based on common
stock of the Company, all Eligible Pay deferred by a Director during a calendar
quarter shall be credited to the Director’s Account in phantom stock units as
of, and based on the closing price for the Company common stock on the New York
Stock Exchange on, the last trading day of such quarter, and phantom dividends
on such Account (based on the balance of phantom stock units in such Account on
the record date for each dividend declared on shares of Company common stock)
shall be added to such Account in phantom stock units as of, and based on the
closing price for the common stock on the New York Stock Exchange on, the date
dividends are actually paid on the common stock.

2.9.          “Eligible Employee”.  An individual employed by an Employer who is
(i) determined by the Administrator to qualify as a “highly compensated or
management” employee for purposes of Sections 201(a)(2), 301(a)(3) and
401(a)(1) of ERISA, and (ii) designated by the Administrator as eligible to
participate in the Plan, provided that such designation has not been revoked by
the Administrator.

2.10.        “Eligible Pay”.  Except as otherwise determined by the
Administrator, Eligible Pay shall include (i) in the case of an Eligible
Employee:  base salary, amounts payable
under the Company’s short-term incentive program, and sales incentive bonuses;
(ii) in the case of a Consultant:  the
consulting fees payable by the Employer; and (iii) in the case of a
Director:  Director Fees.  The Administrator in its discretion may
include other categories of remuneration in, or exclude categories of
remuneration from, the definition of “Eligible Pay,” either in general or in
particular cases; provided, that any such change affecting Director Fees shall
also require the approval of the Board.

2.11.        “Employer”.  The Company and its Subsidiaries, or any of
them.  Except as otherwise specified by
the Administrator, however, participation in the Plan shall be limited to
Eligible Employees employed by, or Consultants providing services to, the
Company or one of the Subsidiaries listed in Appendix A hereto, and to
Directors.

2.12.        “ERISA”.  The Employee Retirement Income Security Act
of 1974, as amended.

2.13.        “Moody’s Rate”.  For any calendar year, the interest rate
specified in Moody’s Bond Record under the heading of “Moody’s Corporate Bond
Yield Averages — Av. Corp.,” as published for the month of November preceding
the calendar year.

2.14.        “Participant”.  A Consultant, Eligible Employee or Director
who participates in the Plan.

 4
 

 

2.15.        “RSP”.  The Cabot Retirement Savings Plan as from
time to time amended and in effect.

2.16.        “Subsidiary”.  A corporation in which the Company holds,
directly or indirectly, stock possessing at least 50% of the total voting
power, and any other corporation or unincorporated trade or business that the
Board designates as a Subsidiary for purposes of the Plan.

3.             Deferral Election.

(a)           In general.  Each Eligible Employee and Consultant may
elect to defer hereunder a specified portion or percentage of his or her
Eligible Pay to be earned for services performed in any calendar year.  Except as the Administrator may otherwise
determine, Eligible Pay is earned for services performed in a year if (i) in
the case of base salary or Consultant’s fees paid on a periodic basis, it would
normally be paid with respect to services performed in that year; or (ii) in
the case of other Eligible Pay, it is neither vested nor determinable at the
beginning of the year but becomes determinable at some point during the
year.  Each such deferral election shall
be made by the Participant’s delivery to the Administrator of a deferral
election form on or before the date specified by the Administrator, but in any
case (except as provided in (b) below) prior to the first day of the calendar
year to which the deferral election relates.

(b)           First year of
participation.  Notwithstanding (a)
above, an individual who first becomes eligible to participate in the Plan
during the course of a calendar year may elect to defer a specified portion or
percentage of his or her Eligible Pay for the remainder of the year by
delivering to the Administrator a deferral election form within 30 days of
becoming eligible to participate in the Plan, such election to take effect as
of the first day of the month next following receipt by the Administrator of
such form or forms (the “initial effective date”). An election under this
paragraph shall be effective only as to Eligible Pay earned for services
performed in the period commencing on the initial effective date and ending on
the last day of the year, as determined by the Administrator under principles
similar to those set forth in (a)(i) and (a)(ii) above.

(c)           Limits.  Except as otherwise determined by the Administrator,
the maximum amount of Eligible Pay that an Eligible Employee may elect to defer
for any year shall be 50% of his or her base salary plus 100% of any other
Eligible Pay.  An Eligible Employee who
elects to defer any Eligible Pay for a year must defer at least $2,000.  The $2,000 minimum shall apply on a prorated
basis with respect to a partial year election under (b) above.  A Consultant may defer any portion or all of
his or her consulting fees for any year.

(d)           Form of election;
irrevocability.  Each deferral
election shall be made in writing on a form prescribed by the
Administrator.  The Administrator may
condition the effectiveness of any election upon the delivery by the
Participant of such other form or

 5
 

 

forms as the
Administrator may prescribe.  A deferral
election applicable to Eligible Pay to be earned for services performed in a
particular calendar year shall be irrevocable once that year has begun (or, in
the case of an initial year of participation described in (b) above, once the
30-day election period has expired).

(e)           Special rules for
Directors.  The provisions of this
Section 3(e) shall apply, in the case of a Director, in lieu of the provisions
of Sections 3(a) through (d) above.  A
Director may defer up to 100% of any Eligible Pay for services performed in any
calendar year by completing and delivering a deferral election in accordance
with Section 3(d) above not later than December 31 of the preceding year.  Any individual may elect within 30 days after
becoming a Director to defer up to 100% of any Eligible Pay earned for services
performed subsequent to such election by completing and delivering a deferral
election in accordance with Section 3(d) above within such 30-day period.  A Director’s Eligible Pay shall be treated as
earned for services performed in a calendar year if paid with respect to
services performed in such year.  The
minimum amount that a Director may defer any calendar year shall be $2,000.

4.             Accounts; Credits.  For each Participant, the Administrator shall
maintain one or more Accounts reflecting deferrals and notional earnings as
hereinafter provided.

(a)           Deferral credits.  Each amount deferred by a Participant under
Section 3 above shall be credited to the Participant’s Account in the year the
amount would have been paid absent the deferral.  In addition, there shall be credited to the
Account of each Participant who is an Eligible Employee:  (i) for the year to which the Participant’s
deferral election relates, an amount equal to 10% of any base salary elected to
be deferred by the Participant from that year; provided, that Participants who
also participate in the Company’s supplemental plans (or any of them) shall not
be eligible for the additional credit described in this clause; and (ii)
subject to Treas. Regs. § 1.401(k)-1(e)(6), if the Participant is a participant
in the RSP, an additional credit equal to the amount, if any, of matching
contributions that would have been made for the benefit of such Participant
under the RSP but for a reduction thereunder attributable to the limitations of
Sections 401(k) and 401(m) of the Code, provided that the Participant has
elected to participate in RSP to the maximum extent permitted by Section 401(k)
of the Code.  Notional earnings under (b)
below shall be calculated as though all amounts deferred under the preceding
two sentences for a calendar year had been credited to the Participant’s
Account as of the first day of such year (or as of the date participation in
the Plan commences, in the case of a Participant’s first year of participation
described in Section 3(b) above).

(b)           Notional earnings.  Not less frequently than annually, the
Administrator shall adjust each Participant’s Account to reflect notional
earnings.  Notional earnings shall be
based on one Earnings Measure selected by the Participant from such Earnings
Measures as the Administrator shall specify. 
Subject to Sections 5(e)(iii) and (iv) below, the next sentence and such
other rules and regulations as the Administrator may require, the Administrator
may, but need not, permit Participants to (i) select an Earnings

 6
 

 

Measure that
will apply to their Accounts from among those specified by the Administrator,
and (ii) change such Earnings Measure to another specified Earnings
Measure.  Notwithstanding any provision
of this Plan to the contrary, (i) a Participant may only select one Earnings
Measure to apply to his or her entire Account at any one time, and (ii) the
effective date of any change in Earnings Measure must be a prospective
January 1.  The Administrator shall
have the absolute discretion at any time to alter or amend the Earnings
Measures used in valuing and adjusting Accounts; provided, that the
Administrator may not, without the written consent of the affected Participant,
alter any Earnings Measure retroactively to the extent that the effect of such
alteration would be to reduce the balance of the Participant’s Account below
what it was immediately prior to such alteration.  Nothing herein shall be construed as
obligating the Administrator or any Employer to set aside assets or establish a
trust or other fund for purposes of the Plan.

(c)           FICA/Medicare
taxes, etc.  To the extent any amount
deferred or credited hereunder to the Account of a Participant is treated as “wages”
for FICA/Medicare or FUTA tax purposes on a current basis rather than when
distributed, all as determined by the Administrator, then the Administrator
shall require that the Participant either (i) timely pay such taxes in cash by
separate check to the Employer, or (ii) make other arrangements satisfactory to
the Employer (e.g., additional withholding from other wage payments) for the
payment of such taxes.  To the extent a
Participant fails to pay or provide for such taxes as required, the Administrator
may suspend the Participant’s participation in the Plan or reduce amounts
credited or to be credited hereunder.

5.             Payment of Deferred Amounts.  The Participant’s Employer shall make
distributions of Account balances as provided in this Section.  All distributions shall be in cash.

(a)           Form and timing
of distributions; in general. 
Amounts credited to a Participant’s Account for any year under Section
4(a) above (the “deferral year”), adjusted for notional earnings under Section
4(b) above, shall be paid as the Participant elects either

(i)            upon the expiration
of a fixed period of years, but in no event earlier than the third anniversary
of the beginning of the deferral year (a “fixed-period election”), or

(ii)           upon the
Participant’s separation from service with the Employer within the meaning of
Section 409A of the Code (a “separation-from-service election”).

Any election made under this Section 5(a) shall not be
effective for any deferral year unless made prior to the beginning of the
deferral year or within 30 days of the Participant’s becoming eligible to
participate in the Plan, in the case of an initial year of participation
described in Section 3(b) above, and once made shall be irrevocable.  Amounts distributable pursuant to a
fixed-period election shall be paid in a lump sum no

 7
 

 

later than January 31 of the year specified in a
fixed-period election (a “fixed-period payment date”).  If the Participant separates from service
prior to a fixed-period payment date, the amount that would otherwise have been
payable pursuant to such fixed-period election shall instead be paid in a lump
sum as soon as reasonably practicable, but no later than 60 days following such
termination.

Upon making a separation-from-service election, a
Participant may elect to have amounts distributable pursuant to such election
paid either in a lump sum or in 
installments over a period of five, ten or fifteen years (a “form-of-payment
election”).  If a Participant chooses a
lump sum form of payment, such lump sum shall be paid as soon as reasonably
practicable, but no later than 60 days following such termination .  If a Consultant or an Eligible Employee
chooses an installment form of payment, installment payments shall be paid
monthly and shall commence as of the first day of the calendar year following
the date such Participant separates from service.  If a Director chooses an installment form of
payment, installment payments shall be paid quarterly and shall commence as of
the last day of the quarter in which the Director separates from service.  Notwithstanding the above, if a Participant
terminates employment prior to age 55 or with less than 10 years of service
with all Employers, all amounts distributable to such Participant under (ii)
above shall be paid in a lump sum as soon as reasonably practicable, but no
later than 60 days following such termination.

A Participant may change a form-of-payment election,
provided, however, that such change (i) does not take effect until at least
twelve months after the date on which the election is made, (ii) except with
respect to payments upon the death of a Participant, does not take effect
unless made on or before the date that is one year prior to the Participant’s
separation from service, and (iii) except with respect to payments upon the
death of a Participant, defers for a period of not less than five years the
payment of a lump sum or the commencement of installment payments from the date
a lump sum payment would otherwise have been made or installment payments would
otherwise have commenced.  However, a
Participant may have only one form of payment election in effect at any time,
and it shall control the manner in which the entirety of the Participant’s
Account distributable under (ii) above will be paid.

(b)           Key Employees.  Notwithstanding the provisions of Section (a)
above, any lump sum payment distributable upon the separation from service of a
Participant who is a “specified employee” within the meaning of Section 409A of
the Code shall be paid as of the date that is six months after the date of the
Participant’s separation from service . 
If a Participant who is a “specified employee” within the meaning of
Section 409A of the Code has elected an installment form of payment, any
installment payments otherwise payable under the terms of the Plan during the
first six months following the date of such Participant’s separation from
service shall instead be paid as of the first day of the month after the date
that is six months after the date on which such participant separated from
service.

 8
 

 

(c)           Distributions
upon death.  Each Participant shall
designate in writing, on such form as the Administrator shall prescribe, a
beneficiary or beneficiaries to receive any amounts remaining to be paid
hereunder at the Participant’s death; but if no such beneficiary designation is
in effect at the time of the Participant’s death, or if the Participant’s
beneficiary(ies) do(es) not survive the Participant, the Administrator shall
cause any such remaining benefits to be paid to the executor or administrator
of the Participant’s estate.  If death
occurs prior to the commencement or completion of installment distributions to
the Participant, the Administrator shall distribute the remaining balance of
the decedent’s Account to the designated beneficiary(ies), or to the decedent’s
estate where applicable, in a lump sum as soon as reasonably practicable, but
no later than 60 days, following such Participant’s death.  The spouse of a married Participant who has
not consented in writing, on such form as the Administrator may prescribe, to a
designation by the Participant of one or more non-spouse beneficiary(ies) shall
be treated as the designated primary beneficiary for 50% of any portion of the
Participant’s Account remaining undistributed at the Participant’s death (or
such larger amount as the Participant shall have specified in his or her
beneficiary designation, if any, in effect at the time of the Participant’s
death).  If application of the preceding
sentence results in the Participant’s spouse being treated as the designated
primary beneficiary for any portion of the Participant’s Account which would
otherwise have been distributed to others, the Administrator shall reduce the
amount payable to the other designated beneficiary(ies), if any, in such
equitable manner as it deems appropriate under the circumstances.

(d)           Unforeseeable
Emergency.  If a Participant suffers
an unforeseeable emergency (as defined below) prior to the payment in full of
his or her Account, the Participant may apply in writing for an extraordinary
distribution under this paragraph.  If
the Administrator in its discretion determines that an unforeseeable emergency
has occurred, the Participant’s Employer will pay the Participant an amount
equal to the lesser of (i) the then balance of the Participant’s Account, or (ii)
the amount determined by the Administrator to be necessary to meet the
emergency (including applicable taxes).  “Unforeseeable
emergency” shall mean an unforeseeable emergency within the meaning of Section
409A of the Code and shall include (i) a severe financial hardship to the
Participant resulting from an illness or accident of the Participant, the
Participant’s spouse, or a dependent (as defined in Section 152(a) of the Code)
of the Participant, (ii) loss of the Participant’s property due to casualty, or
(iii) other similar extraordinary and unforeseeable circumstances arising as a
result of events beyond the control of the Participant.

(e)           Computation of
installment payments, etc.  If any
Account is to be distributed in installments, the amount of each such
installment shall be determined by applying the following special rules:

(i)            If the Earnings
Measure in effect for the Account when installments begin is the Moody’s Rate,
the amount of each installment shall be

 9
 

 

determined so
as to result in equal installments over the installment period, applying the
following special rules:  (x) the
Earnings Measure used to measure notional earnings with respect to the
declining Account balance over the course of the installment period shall be a
fixed rate equal to the average of the Moody’s Rate for the year in which the
installment distributions commence and the preceding four calendar years, and
(y) notional earnings shall be determined by assuming that the Account is
reduced at the beginning of each year in the installment period by the
aggregate amount of the installment payments to be made for that year.

(ii)           If the Earnings
Measure in effect for the Account is not the Moody’s Rate, the Account balance
of the Participant shall be calculated as of the close of business on the first
business day of each fiscal quarter of the Company during the installment
period, and the quarterly installment for that quarter shall be calculated by
dividing this balance by the remaining number of quarterly payments due the Participant.  By way of example, if the Participant elects
40 quarterly installments, the first payment shall be 1/40 of the account
balance, calculated as of the first business day of the first fiscal quarter of
the Company.  The following quarter, the
payment shall be 1/39 of the account balance calculated as of the first
business day of the second fiscal quarter of the Company

(iii)          If the Earnings
Measure in effect for the Account when installments begin is not the Moody’s
Rate, the Participant, subject to Section 4(b) above, may at any time during
the installment period change the Earnings Measure in effect for the Account to
the Moody’s Rate effective as of the next January 1.  The Account balance as of such January 1
shall be paid out in equal installments over the remainder of the installment
period, with the amount of the installments determined applying the following
special rules:  (x) the Earnings Measure
used to measure notional earnings with respect to the declining Account balance
over the remainder of the installment period shall be a fixed rate equal to the
average of the Moody’s Rate for the calendar year in which the equal
installment distributions commence and the preceding four calendar years, and
(y) notional earnings shall be determined by assuming that the Account is
reduced at the beginning of each year in the remainder of the installment
period by the aggregate amount of the installment payments to be made for that
year.

(iv)          Notwithstanding any
provisions of this Plan to the contrary, if the Earnings Measure in effect for
an Account when installments begin is the Moody’s Rate, or if the Participant
changes the Earnings Measure to the Moody’s Rate during the course of the
installment period in accordance with Section 5(e)(iii) above, the Participant
may not subsequently change the Earnings Measure.

 10
 

 

(f)            Section 162(m).  Notwithstanding any other provision of the
Plan, prior to a Change in Control (as that term is defined in the RSP as in
effect immediately prior to such a Change) the Administrator may defer payment
of any portion of a distribution hereunder to the extent permitted by Section
409A of the Code if the Administrator reasonably determines that such deferral
is necessary to avoid disallowance of a deduction under Section 162(m) of the
Code.  Amounts so deferred shall continue
to be credited with notional earnings under Section 4(b) and shall be paid on
the earlier of (i) the date Section 162(m) would no longer limit the
deductibility of such payment, as reasonably determined by the Administrator,
or (ii) the date of Change in Control (as so defined).

(g)           Taxes.  All distributions under the Plan shall be
subject to reduction for applicable tax withholding.

6.             Assignment.  Each Employer’s obligations under the Plan
shall be binding upon its successors and assigns.  The rights of Participants and beneficiaries
under the Plan are not subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, attachment, or garnishment by
creditors of such Participants and beneficiaries.  Any attempt by any person other than
Participants or their beneficiaries to bring a claim under the Plan shall be
null and void.

7.             Plan To Be Unfunded, Etc.  The Plan is intended to be a “pension plan”
(within the meaning of Section 3(2) of ERISA) that is unfunded for ERISA and
tax purposes and that qualifies for the exemptions described in ERISA Sections
201(a)(2), 301(a)(3) and 401(a)(1).  The
Administrator shall be the “plan administrator” of the Plan and shall have
discretion to construe its terms and determine each Eligible Employee’s or
Participant’s eligibility for deferrals or distributions hereunder.  If any person claims any benefit hereunder,
the Administrator shall make and communicate its decision with respect to the
claim within 90 days from the date the claim was received.  Where special circumstances require
additional time for processing the claim, the ninety-day response period may be
extended by the Administrator to 180 days. 
If the Administrator does not render a written determination prior to
the expiration of such 90-day (or 180-day) period, the claim will be deemed
denied.  If a claim hereunder is denied,
the claimant may, within 60 days of such denial, appeal the denial by written
request for review delivered to the Board or its designate, which request may
include a request to review pertinent documents and to submit issues and
comments in writing.  The Board or its
designate shall render a decision on the appeal within 60 days (or, if special
circumstances require an extension of the time for processing, 120 days) after
receipt of the request for review; but if no written decision is rendered
within such period(s), the appeal will be deemed denied.

Nothing in this Section or in Section 4(b) shall be
construed as prohibiting the Employer from establishing and maintaining a “rabbi
trust” or similar trust or account in connection with the Plan, so long as the
maintenance and funding of such a trust or account does not jeopardize the
unfunded status of the Plan under ERISA or effective tax deferral under the
Code.

 11
 

 

8.             No Contract of Employment.  By participating in the Plan, each
Participant expressly acknowledges and agrees that (i) nothing in the Plan or
in its operation, including deferrals hereunder, limits the right of the
Company or any other Employer to terminate the employment or other services of
the Participant at any time, with or without cause, and that (ii) neither he or
she, nor his or her beneficiaries, will claim lost compensation or tax benefits
associated with discontinuance of participation in the Plan as damages or as a
measure of damages in connection with any termination of employment or other
services.

9.             Amendment and Termination.  The Board may terminate the Plan at any time
and may amend the Plan at any time and from time to time, including amendments
with retroactive effect; provided,
that no such action shall, without the consent of the affected Participant,
reduce the balance of any Participant’s Account below what it was immediately
prior to the taking of such action; and
further provided, that upon and following a Change in Control (as
defined in RSP as in effect immediately prior to such a Change), no amendment
shall result in the further deferral of payments that have been delayed by
reason of the operation of Section 5(f) above. 
If it determines such action to be necessary to preserve or reinstate
the Plan’s status as a “top hat” plan under Sections 201(a)(2), 301(a)(3) or
401(a)(1) of ERISA, or to ensure effective tax deferral under the Plan, the
Administrator may at any time exclude any individual from Participation in the
Plan or may make such changes in the deferral or distribution rules hereunder
as are reasonably determined by the Administrator to be necessary to accomplish
such result or results, provided, however, that such changes must be consistent
with the requirements of Section 409A of the Code.  Upon termination of the Plan in general or as
to any Participant or group of Participants, the Administrator may, but need
not, to the extent consistent with Section 409A of the Code, provide for
immediate distribution of Accounts to the affected Participants.

10.           Section 409A.  With respect to amounts deferred by a
Participant for services in calendar year 2005 and in subsequent years,
including all income, gains and losses credited or charged with respect
thereto, the Plan is intended to comply with the requirements of Section 409A
of the Code and shall be construed accordingly. 
With respect to amounts deferred (within the meaning of Section 409A) by
a Participant on or before December 31, 2004 (including all income, gains and
losses credited or charged with respect thereto) the Plan is intended to be
grandfathered for purposes of Section 409A and therefore exempt from Section 409A.

11.           Limitation of Liability.  Notwithstanding anything to the contrary in
the Plan, no Employer, nor the Administrator, nor any person acting on behalf
of any Employer or the Administrator, shall be liable to any Participant or to
the estate or beneficiary of any Participant by reason of any acceleration of
income, or any additional tax, asserted by reason of the failure of any
deferral to satisfy the requirements of Section 409A of the Code.

12.           Administration of the Plan.  The Administrator shall have full power to
interpret and administer the Plan and determine the eligibility of any person
for benefits hereunder and the amount of any such benefit, in its
discretion.  Without limiting the
foregoing, the Administrator shall have full discretionary power and authority,
not inconsistent with the express provisions of the Plan, to select those
individuals who may participate in the Plan; to determine their

 12
 

 

remuneration eligible for
deferral under the Plan; to determine their eligibility to commence receipt of
benefits and the form of benefits (including, without limitation, any
determination as to the proper treatment of leaves of absence and other periods
of service to the Employer); to adopt, alter, and repeal such rules, guidelines
and procedures for administration of the Plan and for its own acts and
proceedings as it shall deem advisable; to prescribe the form of any election
under the Plan; and otherwise to supervise the administration of the Plan.

IN WITNESS WHEREOF, the Company has signed this Plan
Document as of the 8th day of September, 2006.

	
  By:

  	
   

  	
  /s/ Robby D. Sisco

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
  Vice President for Human Resources

  

 

 13
 

 

Appendix A

Employers Participating in the Plan  

Cabot Corporation

Cabot Specialty Fluids,
Inc.

 14EXHIBIT 10(f)

Cabot
Corporation

Compensation
for Non-Employee Directors

On January 13, 2006, the
Board of Directors of Cabot Corporation (“Cabot”) approved the compensation
outlined below for Cabot’s non-employee directors, effective January 1, 2006.  There have not been any changes in these
arrangements since that time.

·                                          An annual retainer of $31,000 for each
non-employee director.

·                                          An annual retainer of $21,000 for serving
on the Audit Committee.

·                                          An annual retainer of $7,000 for serving
on each of the Compensation, Safety Health & Environmental Affairs, or
Governance and Nominating Committees.

·                                          An annual retainer of $30,000 for serving
as lead director.

·                                          An annual retainer of $40,000 for serving
as Chair of the Audit Committee.

·                                          An annual retainer of $10,000 for serving
as Chair of the Compensation, Safety Health & Environmental Affairs, or
Governance and Nominating Committees.

The standard compensation
arrangements for non-employee directors also have included an annual grant of
shares of Cabot common stock.  On March
9, 2006, Cabot’s stockholders approved a new Non-Employee Directors’ Stock
Compensation Plan.  The Plan provides for
each of Cabot’s non-employee directors to receive a grant of 2,500 shares of
Cabot common stock with respect to compensation for calendar year 2006.  For any given calendar year thereafter, the
Governance and Nominating Committee has the authority, in its sole discretion,
to increase or decrease the number of shares of Cabot common stock issuable to
non-employee directors. Cabot’s Corporate Governance Guidelines require
non-employee directors to have equity ownership in Cabot in the range of three
times their annual cash retainers.  It is
expected that this ownership interest will generally be achieved within a three-to-five
year period beginning when a director is first elected to the Board.  In addition, where equity-based compensation
is a component of compensation, each non-employee director is required to
retain the shares granted in any given year for a period of three years from
the date of issuance or until the director’s earlier retirement.

Directors also are
reimbursed for travel expenses incurred for attending Board and Committee
meetings and are covered by Cabot’s travel accident insurance policy for such
travel.

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