Document:

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                                                                   Exhibit 10.11

Lyondell Chemical Company

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ELECTIVE DEFERRAL PLAN FOR NON-EMPLOYEE DIRECTORS

As Amended and Restated Effective October 16, 1998
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                                   ARTICLE I

                              GENERAL PROVISIONS

Section 1.1.  Purpose and Intent of Plan.  This Plan is intended to provide an
opportunity for Directors who are not employees of the Company to accumulate
supplemental funds for retirement or special needs prior to retirement through
the deferral of portions of their Board and Committee Retainers and Meeting
Fees.

Section 1.2.  Effective Date of Plan.  This amended and restated Plan document
shall be effective as of October 16, 1998.

Section 1.3.  Definitions.

     (a)  Account means a separate bookkeeping account maintained by the Company
for each Participant and which measures and determines the amounts to be paid to
the Participant under the Plan. Effective October 1, 1996, separate subaccounts
within the Account for previous deferrals of Retainer and Meeting Fees, will be
consolidated into a single account balance.

     (b)  Administrative Committee means the Directors Benefit Committee.

     (c)  Beneficiary means a person who is entitled to receive a Participant's
interest under this Plan in the event of the Participant's death.

     (d)  Board means the Board of Directors of Lyondell Chemical Company.

     (e)  Board Committee means any committee established by the Board which
consists of Directors and which reports to the Board.

     (f)  Change in Control shall be deemed to have occurred as of the date that
one or more of the following occurs:

          (i)    Individuals who, as of the date hereof, constitute the entire
Board of Directors of the Company ("Incumbent Directors") cease for any reason
to constitute at least a majority of the Board; provided, however, that any
                                                --------  -------
individual becoming a director subsequent to the date hereof whose election, or
nomination for election by the Company's shareholders, was approved by a vote of
at least a majority of the then Incumbent Directors shall be considered as
though such individual was an Incumbent Director, but excluding, for this
purpose any such individual whose initial assumption of office occurs as a
result of either an actual or threatened election contest, as such terms are
used in Rule 14a-11 under the Securities Exchange Act of 1934, as amended or
other actual or threatened solicitation of proxies or consents by or on behalf
of any Person (as defined below) other than the Board;

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          (ii)   The stockholders of the Company shall approve (A) any merger,
consolidation or recapitalization of the Company (or, if the capital stock of
the Company is affected, any subsidiary of the Company), or any sale, lease, or
other transfer (in one transaction or a series of transactions contemplated or
arranged by any party as a single plan) of all or substantially all of the
assets of the Company (each of the foregoing being an "Acquisition Transaction")
where (1) the shareholders of the Company immediately prior to such Acquisition
Transaction would not immediately after such Acquisition Transaction
beneficially own, directly or indirectly, shares or other ownership interests
representing in the aggregate eighty percent (80%) or more of (a) the then
outstanding common stock or other equity interests of the corporation or other
entity surviving or resulting from such merger, consolidation or
recapitalization or acquiring such assets of the Company, as the case may be
(the "Surviving Entity") (or of its ultimate parent corporation or other entity,
if any), and (b) the Combined Voting Power of the then outstanding Voting
Securities of the Surviving Entity (or of its ultimate parent corporation or
other entity, if any) or (2) the Incumbent Directors at the time of the initial
approval of such Acquisition Transaction would not immediately after such
Acquisition Transaction constitute a majority of the Board of Directors, or
similar managing group, of the Surviving Entity (or of its ultimate parent
corporation or other entity, if any), or (B) any plan or proposal for the
liquidation or dissolution of the Company; or

          (iii)  Any Person shall be or become the beneficial owner (as defined
in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, as amended),
directly or indirectly, of securities of the Company representing in the
aggregate more than twenty percent (20%) of either (A) the then outstanding
shares of common stock of the Company ("Common Shares") or (B) the Combined
Voting Power of all then outstanding Voting Securities of the Company; provided,
                                                                       --------
however, that notwithstanding the foregoing, a Change in Control shall not be
-------
deemed to have occurred for purposes of this Subsection (iii):

          (1)  Solely as a result of an acquisition of securities by the Company
which, by reducing the number of Common Shares or other Voting Securities
outstanding, increases (a) the proportionate number of Common Shares
beneficially owned by any Person to more than twenty percent (20%) of the Common
Shares then outstanding, or (b) the proportionate voting power represented by
the Voting Securities beneficially owned by any Person to more than twenty
percent (20%) of the Combined Voting Power of all then outstanding Voting
Securities; or

          (2)  Solely as a result of an acquisition of securities directly from
the Company except for any conversion of a security that was not acquired
directly from the Company,

provided, further, that if any Person referred to in paragraph (1) or (2) of
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this Subsection (iii) shall thereafter become the beneficial owner of any
additional Common Shares or other Voting Securities of the Company (other than
pursuant to a stock split, stock dividend or similar transaction), then a Change
in Control shall be deemed to have occurred for purposes of this Subsection
(iii).

          (iv)   For purposes of this Section 1.3(f):

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          (1)  "Affiliate" shall mean, as to a specified Person, another Person
that directly, or indirectly through one or more intermediaries, controls or is
controlled by, or is under common control with, the specified Person, within the
meaning of such terms as used in Rule 405 under the Securities Act of 1933, as
amended, or any successor rule.

          (2)  "Combined Voting Power" shall mean the aggregate votes entitled
to be cast generally in the election of the Board of Directors, or similar
managing group, of a corporation or other entity by holders of then outstanding
Voting Securities of such corporation or other entity.

          (3)  "LCR" shall mean LYONDELL-CITGO Refining Company Ltd. (from and
after January 1, 1999, LYONDELL-CITGO Refining LP), a Limited Liability Company
organized under the laws of the State of Texas.

          (4)  "Person" shall mean any individual, entity (including, without
limitation, any corporation, partnership, trust, joint venture, association or
governmental body) or group (as defined in Sections 14(d)(3) or 15(d)(2) of the
Exchange Act and the rules and regulations thereunder); provided, however, that
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Person shall not include the Company or LCR, any of their subsidiaries, any
employee benefit plan of the Company or LCR or any of their majority-owned
subsidiaries or any entity organized, appointed or established by the Company,
LCR or such subsidiaries for or pursuant to the terms of any such plan.

          (5)  "Voting Securities" shall mean all securities of a corporation or
other entity having the right under ordinary circumstances to vote in an
election of the Board of Directors, or similar managing group, of such
corporation or other entity.

     (g)  Citibank Base Rate means for any Plan Year the average of the prime
rates at Citibank, N. A., in effect on the first day of the current calendar
quarter and each of the three prior quarters provided, however, that if for any
quarter the first day of the calendar quarter is not a business day, the prime
rate in effect on the first business day of such quarter shall be deemed the
prime rate for the first day of such quarter.

     (h)  Code means the Internal Revenue Code of 1986, as amended.

     (i)  Company means Lyondell Chemical Company and any of its subsidiaries or
affiliates.

     (j)  Deferral Election means an election made by a Director to defer
Retainer and/or Meeting Fees, for which the Director has submitted a
Participation Agreement.

     (k)  Deferral Period means a maximum number of years established by the
Administrative Committee in advance of a particular Deferral Election, over
which the Director elects to defer Retainer or Meeting Fees. A new Deferral
Period shall normally start each January 1, except that with respect to a new
Director, the Deferral Period shall commence 30 days after the Director's
election to the Board.

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     (l)  Deferred Compensation means the amount of Retainer or Meeting Fees
that a Director elects to defer pursuant to a Deferral Election. If applicable,
Deferred Compensation also includes the present value as of December 31, 1998 of
the accrued retirement benefit earned under the Company's Retirement Plan for
Non-Employee Directors which a Director has elected to defer under this Plan
effective January 1, 1999.

     (m)  Director means a Director of the Board who is not a current employee
of the Company.

     (n)  Effective Date means October 16, 1998.

     (o)  Financial Hardship means a condition of financial difficulty,
determined by the Administrative Committee, upon advice of counsel, based on
written information supplied by the Participant or Beneficiary, as the case may
be, in accordance with such standards established, from time to time, by the
Administrative Committee, which condition is sufficient to justify a change in
payment election under the Plan without causing receipt of taxable income by any
other Plan Participant before the Participant or Beneficiary, as the case may
be, actually receives his benefit.

     (p)  In-Service Distribution means a distribution to a Participant prior to
Termination of Service pursuant to Section 4.4.

     (q)  Interest Rate means (i) for any Plan Year commencing prior to a Change
in Control, the interest rate adopted by the Administrative Committee in advance
of the election period for a Plan Year, which shall constitute the interest rate
applicable to that Plan Year; or (ii) for each Plan Year commencing after a
Change in Control, the interest rate which is equal to the greater of (a) the
Prime Rate or (b) 125 percent of the rolling average Ten-Year Treasury Note
Rate, as of October 1 prior to the commencement of the applicable Plan Year.

     (r)  Meeting Fee means the amount paid in cash to a Director as
compensation for each Board and/or Board Committee meeting attended by the
Director.

     (s)  Participant means any Director who is participating in this Plan as
provided in Article II, or any former Director who has not received the entire
benefit to which he or she is entitled under this Plan.

     (t)  Participation Agreement means the Deferral Election submitted by a
Participant to the Company prior to the beginning of the Deferral Period.

     (u)  Plan means this Elective Deferral Plan for Non-Employee Directors.

     (v)  Plan Year means each calendar year beginning on January 1 and ending
on December 31, except that the first Plan Year shall be the period commencing
on August 1, 1990 and ending on December 31, 1990.

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     (w)  Prime Rate means the prime commercial lending rate of Citibank, N.A.
as publicly announced to be in effect at the close of business on October 1 of
the year immediately prior to the commencement of the applicable Plan Year. The
Prime Rate is not necessarily the lowest rate of interest of Citibank, N.A.

     (x)  Retainer Fee means the annual amount paid in cash to an Director as
compensation for serving in such capacity and any additional annual amount paid
in cash to an Director for serving in the capacity of a Board Committee
Chairman.

     (y)  Retirement means the Director's termination of employment with a right
to an immediate retirement allowance from the Director's regular, full-time
employer.

     (z)  Survivor Benefit means the benefits described in Section 4.3 of the
Plan.

     (aa) Ten-Year Treasury Note Rate means the rate periodically published by
the U.S. Department of Treasury under the heading "10 year Treasury Note Rate".

     (bb) Termination of Service means the Director ceasing to be a member of
the Board.

     (cc) Trust Agreement means the Trust Agreement between Lyondell Chemical
Company and State Street Bank & Trust Company, and any amendments or successor
agreements thereto.

     (dd) Unscheduled Distribution means a distribution to a Participant
pursuant to Section 4.5.

     (ee) Valuation Date means the last day of each month, or such other dates
as the Administrative Committee may determine in its discretion, which may be
either more or less frequent, for the valuation of Participants' Accounts.

                                  ARTICLE II

                     PARTICIPATION AND DEFERRAL ELECTIONS

Section 2.1. Participation.  A Director may elect to participate, or continue
participation, in the Plan by submitting a Participation Agreement for a
Deferral Period to the Company no later than thirty (30) days prior to the
commencement of the Deferral Period.

Section 2.3.  Deferral Elections.  Prior to each Deferral Period, through
completion of a form provided by Company, each Director may make a Deferral
Election which shall be irrevocable except as authorized pursuant to Section
2.6.

Section 2.4.  Limitation on Deferral.  Deferral Elections shall be subject to
any limitation established by the Administrative Committee in advance of a
Deferral Period, including a

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minimum deferral amount reasonably anticipated to be in excess of Eight Thousand
Dollars ($8,000) per Deferral Period and a minimum deferral amount reasonably
anticipated to be in excess of at least Two Thousand Dollars ($2,000) per Plan
Year in the Deferral Period. The maximum Deferral Election for any Plan Year
within a Deferral Period is an amount equal to one hundred (100%) of the
Participant's Retainer and Meeting Fees payable in cash for such Plan Year.

Section 2.5. Termination of Service.  A Participant's Deferral Elections shall
terminate upon the Participant's Termination of Service.

Section 2.6. Modification of Deferral Elections.  Deferral Elections shall be
irrevocable except as follows:

     (a)  Financial Hardship. The Administrative Committee may permit a
Participant to reduce the amount elected under a prior Deferral Election, or to
waive the remaining deferrals under a prior Deferral Election, upon a finding
that the Participant has suffered a Financial Hardship.

     (b)  Accelerated Deferral. At the Administrative Committee's discretion,
prior to the beginning of any Plan Year in any Deferral Period for which two or
more Plan Years remain, a Participant may elect to accelerate the amount of
Deferred Compensation previously elected for any of the remaining Plan Years in
that Deferral Period; provided, however, that any acceleration of Deferred
Compensation for remaining Plan Years in the Deferral Period shall not increase,
for any single Plan Year, the total Retainer or Meeting Fee deferrals above one
hundred percent (100%) of the Participant's Retainer and Meeting Fees payable in
cash during the Plan Year.

                                  ARTICLE III

                        DEFERRED COMPENSATION ELECTIONS

Section 3.1.  Accounts.  For record-keeping purposes only, Accounts shall be
maintained for each Participant.

Section 3.2.  Deferred Compensation.  A Participant's Deferred Compensation
shall be credited to his or her Account as of the date when the corresponding
non-deferred portion of the compensation is paid or would have been paid but for
the Deferral Election.  Any Deferred Compensation attributable to the accrued
benefit earned by the Participant as of December 31, 1998 under the Company's
Retirement Plan for Non-Employee Directors shall be credited to the
Participant's Account effective January 1, 1999.  The Company shall have the
right to withhold from any Retainer or Meeting Fees or Plan benefits (or
otherwise to cause the Director, his Beneficiary or the executor or
administrator of his estate to make payment of) any federal, state, local or
foreign taxes required to be withheld with respect to any Deferred Compensation
or benefits paid pursuant to the Plan.

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Section 3.3.  Interest Rate.  Except as provided in Section 4.8, the Accounts
shall be credited as of each Valuation Date with interest based on the rates
specified below, compounded annually.  Interest shall be credited as of each
Valuation Date from the date when Deferred Compensation is credited to Accounts
based on the balance of each Account.

     (a)  Interest Rate During Participant's Lifetime. During a Participant's
lifetime, the Participant's Account will be credited with interest at the
greater of the Interest Rate previously announced by the Company to be
applicable for the Plan Year or the current Citibank Base Rate. The Interest
Rate for the first Plan Year shall be 125% of the rolling average Ten-Year
Treasury Note Rate.

     (b)  Interest Rate After Participant's Death. Following a Participant's
death, the Participant's Account will be credited with interest at an interest
rate equal to the Citibank Base Rate. With respect to payments made pursuant to
Section 4.3(a), no interest shall be credited on that portion of the benefit
representing a Participant's unfulfilled Deferral Commitment for each Deferral
Unit.

Section 3.4.  Determination of Accounts.  A Participant's Account as of each
Valuation Date shall consist of the balance of the Participant's Account as of
the immediately preceding Valuation Date, plus the amount of the Participant's
Deferred Compensation since that Valuation Date, plus interest credited to the
Account and minus any distributions or reductions made from the Account since
the immediately preceding Valuation Date.

Section 3.5.  Vesting of Accounts.  Each Participant shall be one hundred
percent (100%) vested at all times in the amounts credited to his or her
Account.

Section 3.6.  Statement of Accounts.  At least annually, the Company shall
provide each Participant with a statement setting forth the balance of his or
her Account.

                                  ARTICLE IV

                                 PLAN BENEFITS

Section 4.1.  Plan Benefit.   A Participant's benefit under the Plan shall equal
the amount of his or her Account as determined in accordance with Sections 3.4
and 4.6.

Section 4.2.  Distribution upon Termination of Service.  (a)  Lump Sum.
Benefits payable on account of a Participant's Termination of Service, other
than due to the death of the Participant, shall be paid in a lump sum unless the
Participant has otherwise elected to have all or a portion of the benefits
distributed in accordance with Section 4.2(b) and/or Section 4.2(c) hereof.

     (b) Deferred Commencement of Benefits.  A Participant may elect to
have payment of all or any portion of the Participant's Account commence on (i)
January of any year following the Participant's Termination of Service or (ii)
the later of the month following Retirement or

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completion of all the Participant Deferrals under the Plan, provided that
payment of benefits must commence no later than January of the year in which the
Participant will reach age seventy-two (72).

     (c)  Installment Payments. A Participant may elect to have payment of all
or any portion of the Participant's Account benefits made in substantially equal
monthly installment payments of five (5) years, ten (10) years or fifteen (15)
years. The amount of each of the monthly installments shall be redetermined
effective as of January 1 of each year based on the remaining Account balance
and the remaining number of installment payments.

     (d)  Change of Election. A Participant, other than a former Director, may
change a distribution election once each year until the year in which the
Participant attains age 70. The change must be made during a period established
by the Administrative Committee which precedes a Deferral Period and is
irrevocable until the next period established by the Administrative Committee.
The Participant's distribution election shall become irrevocable as of the year
in which the Participant attains age 70, except that a Participant may request
in writing, that the Administrative Committee approve a change of an election
made pursuant to Subsection (b) or (c) at any time prior to commencement of the
payment of benefits, or in the case of installment payments, following
commencement of payments, if (i) the Administrative Committee determines that
the Participant has experienced a Financial Hardship justifying the request for
a change of election, or (ii) the Participant agrees to accept a reduction in
the value of the benefit, as determined by the Administrative Committee, upon
advice of counsel, to be necessary to preclude the receipt of taxable income by
any Participant in the Plan before the Participant actually receives his or her
benefit.

     If a Participant has a voluntary Termination of Service prior to the year
in which the Participant attains age 72, the Administrative Committee shall not
honor any change in distribution elections made within the two calendar years
immediately preceding the year in which the Termination of Service occurred. The
Participant's distribution election which had been made before that period shall
be considered the controlling distribution election, unless the Participant
requests and the Committee grants, a change of election for the reasons provided
in (i) or (ii) above.

     (e)  Transition Election. A Participant, other than a former Director, may
submit a distribution election which supersedes all existing distributions
elections for all previous deferrals under this Plan during a period established
by the Administrative Committee prior to the 1997 deferral period,
notwithstanding the Participant's age or prior distribution elections.

     (f)  Payment of Benefits Upon Death of Participant. Upon a Participant's
death, any of the Participant's vested and unpaid benefits shall be paid in
accordance with the applicable provisions of Section 4.3.

Section 4.3.  Survivor Benefits.  (a)  Death Prior to Termination of Service.
If the Participant dies prior to Termination of Service, the Survivor Benefit
shall be equal to the sum of the Participant's Account as determined in
accordance with Section 3.4 and 4.6 plus an amount equal to the Participant's
unfulfilled Deferral Elections for unexpired Deferral Periods, if any.  The

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Survivor Benefit shall be paid in a lump sum unless the Participant has elected
to have all or a portion of the benefits distributed in accordance with
Subsection (b) hereof.

     (b)  Installment Payments. A Participant may elect to have payment of the
Survivor Benefit made to the Participant's Beneficiary in substantially equal
monthly payments of five (5) years, ten (10) years or fifteen (15) years if the
Participant's Termination of Service is due to the death of the Participant. The
amount of each of the monthly installments shall be redetermined effective as of
January 1 of each year based on the remaining Account balance and the amount, if
any, attributable to the Participant's unfulfilled Deferral Elections and the
remaining number of installment payments.

     (c)  Death After Termination of Service. If the Participant dies after
Termination of Service and all benefits have not been paid in a lump sum under
Section 4.2(a), the Survivor Benefit shall be equal to the Participant's Account
as determined in accordance with Sections 3.4 and 4.6 and payable in the form
and at the time elected by the Participant.

     (d)  Change of Election.  A Beneficiary may request the Administrative
Committee to approve a change in the form of payment from installments to a lump
sum provided that (i) the Administrative Committee determines, upon application
of the Beneficiary, that the Beneficiary has experienced a Financial Hardship
justifying the request for a change of election, or (ii) the Beneficiary agrees
to accept a reduction in the value of the benefit, as determined by the
Administrative Committee, upon advice of counsel, to be necessary to preclude
the receipt of taxable income by any Participant in the Plan in advance of the
time the Participant actually receives his or her benefit.

     (e)  Death Following Change in Control. If a Participant is entitled to a
payment under Section 4.8 and dies prior to receiving his entire Account, the
balance of the Participant's Account shall be paid to Participant's Beneficiary
in a lump sum payment or on an installment basis, according to the Participant's
existing election of form of payment on Change in Control.

Section 4.4.  In-Service Distributions.  A Participant may elect to receive an
In-Service Distribution from his or her Account subject to the following
restrictions:

     (a)  Timing of Election. The election to take an In-Service Distribution
from the Account for a particular Deferral Election must be made at the same
time the Participant makes the particular Deferral Election.

     (b)  Amount of Distribution. The amount which a Participant can elect to
receive as an In-Service Distribution with respect to an Account shall be such
portions of the Participant's Account balance for the amounts deferred under a
particular Deferral Election, as prescribed by the Administrative Committee in
advance of the Deferral Period. If a previously elected amount exceeds the
Account balance when an In-Service Distribution is to be made, only the Account
balance will be paid.

     (c)  Timing and Form of In-Service Distribution. The In-Service
Distribution shall commence at the time and in the form elected by the
Participant in the Participation Agreement

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entered into with respect to the Deferral Election; provided, however, that if
the Participant has a Termination of Service, the In-Service Distribution
election will be canceled and distribution will be made pursuant to Section 4.2
and provided, further, that if the Participant commences Retirement and has
elected payment upon Retirement, the In-Service Distribution election will be
canceled and distribution will be made pursuant to Section 4.2. In no event
shall an In-Service Distribution be made prior to two (2) years following the
initial effective date of the particular Deferral Election.

     (d)  Treatment of Distribution. Amounts paid to a Participant pursuant to
this Section 4.4 shall be treated as distributions from the Participant's
Account.

     (e)  Transition Election.  During a period to be established by the
Administrative Committee prior to the 1997 Deferral Period, a participant may
elect to maintain or revoke any existing In-Service Distribution Election.  No
other changes are permitted in any existing In-Service Distribution Election.  A
Participant who fails to make an election regarding existing In-Service
Distributions shall be considered to have elected to maintain those existing In-
Service Distribution Elections.

Section 4.5.  Unscheduled Distributions.  Upon a finding that a Participant has
suffered a Financial Hardship or upon the Participant agreeing to accept a
reduction of his or her benefit in an amount determined necessary by the
Administrative Committee, upon advice of counsel, to avoid constructive receipt
of taxable income by any Participant, the Administrative Committee may, in its
sole discretion, make distributions from an Account prior to the time specified
for payment of the Account. Any unscheduled withdrawal will be paid in lump sum
and will be subject to a minimum amount of $10,000 and any additional conditions
prescribed by the Administrative Committee.  Applications for unscheduled
distributions and determinations thereon by the Administrative Committee shall
be in writing, and a Participant may be required to furnish proof of the
Financial Hardship in a formal manner as deemed appropriate by the
Administrative Committee, upon advice of counsel.

Section 4.6.  Valuation and Settlement.  The date on which a lump sum is paid or
the date on which installment payments commence shall be the "Settlement Date".
The Settlement Date shall be no more than thirty (30) days after the last day of
the month in which the Participant or his Beneficiary becomes entitled to
payments on account of Retirement, Termination of Service or death, unless the
Participant elected to defer commencement of payments pursuant to Section
4.2(b).  The Settlement Date for an In-Service Distribution or delayed payments
shall be the month which the Participant elects to have such payments commence
in the election form for designation of form of payment.  The amount of a lump
sum and the initial amount of installment payments shall be based on the value
of the Participant's Account as of the Valuation Date immediately preceding the
Settlement Date.

Section 4.7.  Small Benefit.  Notwithstanding any election made by the
Participant, the Company may pay any benefit in the form of a lump sum payment
to the Participant or any Beneficiary, if the value of the Plan benefits
remaining following a distribution for any reason, or the benefit payable to the
Participant or Beneficiary when payments to such Participant or Beneficiary
would otherwise commence, is less than $2,000.

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Section 4.8.  Change in Control.  Notwithstanding any contrary provisions of
this Article IV, in the event that a Change in Control, as defined in the Trust
Agreement and incorporated herein by reference, occurs while this Plan is in
effect, the provisions of this Section 4.8 shall control.  In the event of a
Change in Control, the full amount of contributions and earnings accrued or
credited to the Participant's Account, as of the date immediately preceding the
Change in Control, shall be distributed to the Participant or the Participant's
Beneficiary, if a Survivor Benefit is being paid to a Beneficiary at the time of
Change in Control.  Payment shall be made on a lump sum or installment basis,
according to the Participant's election of the form of payment on Change in
Control.

Section 4.9.  Combined Gross-up Payment; Tax Defense.

     (a)  Combined Gross-up Payment. If a Participant becomes entitled to one or
more payments (with a "payment" including, without limitation, an increase in
pension benefits and the vesting of an option or other non-cash benefit or
property) pursuant to the terms of any plan, arrangement or agreement with the
Company (the "Total Payments"), which are or become subject to the tax imposed
by Section 4999 of the Internal Revenue Code of 1986, as amended (the "Code")
(or any similar tax that may hereafter be imposed) (the "Excise Tax"), the
Company shall pay to the Participant an additional cash amount (the "Combined
Gross-up Payment") such that the net amount retained by the participant after
reduction for (i) any Excise Tax on the Total Payments and (ii) any federal,
state and local income or employment tax and Excise Tax payable with respect to
the Combined Gross-up Payment, shall equal the Total Payments. For purposes of
determining the amount of the Combined Gross-up Payment, a Participant shall be
deemed (i) to pay federal income taxes at the highest stated rate of federal
income taxation (including surtaxes, if any) for the calendar year in which the
Combined Gross up Payment is to be made; and (ii) to pay any applicable state
and local income taxes at the highest stated rate of taxation (including
surtaxes, if any) for the calendar year in which the Combined Gross-up Payment
is to be made. Any Combined Gross-up Payment required hereunder shall be made to
the Participant at the same time any Total Payment subject to the Excise Tax is
paid or deemed received by the Participant. The Combined Gross-up Payment shall
not be paid under this Plan if a Combined Gross-up Payment which is identical to
or greater than the amount calculated under this Section 4.9 is paid under any
other plan, arrangement or agreement with the Company.

     (b)  Tax Defense. If, in connection with the examination of a Participant's
tax return, the Internal Revenue Service asserts that any amount payable or
benefit provided hereunder is a "parachute payment" as defined in the Code and
such amount or benefit was not treated as a parachute payment in determining a
Combined Gross-up Payment, Company at its cost shall assume the defense of any
controversy involving such issue and shall indemnify and hold the Participant
harmless for all liabilities, costs, taxes, interest and penalties attributable
to such issue and shall to the extent necessary (without duplication) increase
the Combined Gross-up Payment to give effect to any additional amount or benefit
determined to be a parachute payments. The Participant shall cooperate with
Company so that Company will be able to challenge any adverse determination by
the Internal Revenue Service through administrative proceedings and, if
determined by Company, through litigation.

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                                   ARTICLE V

                          DESIGNATION OF BENEFICIARY

Section 5.1.  Designation of Beneficiary.  Each Participant shall have the right
to designate a Beneficiary or Beneficiaries to receive his interest in his
Account upon his death as determined in accordance with Section 4.3.  Such
designation shall be made on a form provided by and delivered to the Company.
The Participant shall have the right to change or revoke any such designation
from time to time by filing a new designation or notice of revocation with the
Company.  No notice to or consent by any Beneficiary shall be required to effect
any such change or revocation.

Section 5.2.  Failure to Designate Beneficiary.  If a Participant fails to
designate a Beneficiary before his or her death, or if no designated Beneficiary
survives the Participant, the balance in the Participant's Account shall be paid
in a lump sum to the executor or administrator for his or her estate.

                                  ARTICLE VI

                                ADMINISTRATION

Section 6.1.  Administrative Committee.  The Administrative Committee shall be
responsible for the administration of the Elective Deferral Plan for Non-
Employee Directors.

Section 6.2.  Rules of Conduct.  The Administrative Committee shall adopt such
rules for the conduct of its business and administration of this Plan as it
considers desirable, provided they do not conflict with the provisions of this
Plan.

Section 6.3.  Legal, Accounting, Clerical and Other Services.  The
Administrative Committee may authorize one or more of its members or any agent
to act on its behalf and may contract for legal, accounting, clerical and other
services to carry out this Plan.  All expenses of the Administrative Committee
shall be paid by the Company.

Section 6.4.  Interpretation of Provisions.  The Administrative Committee shall
have the exclusive right and discretionary authority to interpret the provisions
of this Plan and to decide questions arising in its administration.  The
decisions and interpretations of the Administrative Committee shall be final and
binding on the Company, Participants, Directors, Beneficiaries and all other
persons.

Section 6.5.  Records of Administration.  Records reflecting the administration
of this Plan shall be kept.

                                      -12-
<PAGE>

Section 6.6.  Denial of Claim.  The Administrative Committee shall provide
adequate notice in writing to any Participant, Director or Beneficiary whose
claim for benefits under this Plan has been denied, setting forth the specific
reasons for such denial.  The Participant, Director or Beneficiary will be given
an opportunity review by the Administrative Committee of the decision denying
the claim.  The Participant, Director or Beneficiary shall be given sixty (60)
days from the date of the notice denying any such claim within which to request
such review.

Section 6.7.  Liability of Committee.  No member of the Administrative Committee
shall be liable for any action taken in good faith or for exercise of any power
given the Administrative Committee, or for the actions of other members of said
Administrative Committee.

                                  ARTICLE VII

                          AMENDMENT AND DISCONTINUANCE

Section 7.1.  Amendment of Plan.  This Plan may be amended from time to time by
the Board of Directors of the Company.

Section 7.2.  Termination.  The Company intends to continue this Plan
indefinitely, but reserves the right to terminate it at any time.  In the event
of a Change in Control, this Plan shall be terminated following distribution of
assets to Participants or to the Independent Plan Administrator under the Non-
Employee Directors Benefit Plans Trust Agreement.

Section 7.3.  Effect of Amendment or Termination.  No amendment or termination
of this Plan may adversely affect the benefit payable to any former Participant
or Beneficiary receiving benefits under this Plan prior to the effective date of
the amendment or termination, or any Participant or Beneficiary of a deceased
Participant who, as of such effective date, was vested in or eligible to receive
a benefit under this Plan, except as follows.  Payment of a Participant's
Account to the Participant or a Beneficiary in a previously elected form of
distribution payable on Change in Control shall not be considered an amendment
which adversely affects benefits under this Plan.

     No amendment or termination of this Plan due to a Change in Control shall
adversely affect the amount of contributions and earnings accrued or credited to
any former or current Participant's Account under this Plan immediately prior to
the Change in Control.

                                      -13-
<PAGE>

                                  ARTICLE VIII

                                 MISCELLANEOUS

Section 8.1.  Unsecured General Creditor.  Participants and their Beneficiaries
shall have no legal or equitable rights, claims or interests in any specific
assets or property of the Company, nor shall they be the beneficiaries of, or
have any rights, claims or interests in any life insurance policies, annuity
contracts, or the proceeds therefrom owned, or which may be acquired by, the
Company ("Policies").  Any such Policies or other assets of the Company shall
be, and remain, the general, unpledged, unrestricted assets of the Company.  The
Company's obligation under the Plan shall be merely that of an unfunded and
unsecured promise of the Company to pay money in the future.

Section 8.2.  Grantor Trust.  Although the Company is responsible for the
payment of all benefits under the Plan, the Company may, in its sole discretion,
contribute funds to a grantor trust for the purpose, as it deems appropriate, of
paying benefits under this Plan.  Such trust may be irrevocable, but assets of
the trust shall be subject to the claims of creditors of the Company.  To the
extent any benefits provided under the Plan are actually paid from the trust,
the Company shall have no further obligation with respect thereto but to the
extent not so paid, such benefits shall remain the obligation of, and shall be
paid, by the Company.  The Participants or Beneficiaries of deceased
Participants shall have the status of unsecured creditors insofar as their legal
claim for benefits under the Plan and shall have no security interest in the
grantor trust.

Section 8.3.  Payments and Benefits Not Assignable.  Payments to and benefits
under this Plan are not assignable, transferable or subject to alienation since
they are primarily for the support and maintenance of the Participants and
Beneficiaries. Likewise, such payments shall not be subject to attachment by
creditors of, or through legal process against, the Company, the Administrative
Committee or the Participants.

Section 8.4.  No Right To Service On The Board.  The provisions of this Plan
shall not give a Director the right to be retained in the service of the Company
nor shall this Plan or any action taken under the Plan be construed as a
contract for service on the Board.

Section 8.5.  Adjustments.  At the Company's request, the Administrative
Committee may, with respect to a Participant, adjust such Participant's benefit
under this Plan or make such other adjustments with respect to such Participant
as are required to correct administrative errors or provide uniform treatment of
Participants in a manner consistent with the intent and purpose of this Plan.

Section 8.6.  Obligation to Company.  If a Participant becomes entitled to a
distribution of benefits under the Plan, and if at such time the Participant has
outstanding any debt, obligation, or other liability representing an amount
owing to the Company, or any benefit plan maintained by the Company, then the
Company may offset such amount owed to it or such benefit plan

                                      -14-
<PAGE>

against the amount of benefits otherwise distributable. Such determination shall
be made by the Administrative Committee.

Section 8.7.  Protective Provisions.  Each Participant shall cooperate with the
Company by furnishing any and all information requested by the Company in order
to facilitate the payment of benefits hereunder, taking such physical
examinations as the Company may deem necessary and taking such other relevant
action as may be requested by the Company.  If a Participant refuses to
cooperate, the Company shall have no further obligation to the Participant under
the Plan.  If the Participant makes any material misstatement of information or
nondisclosure of medical history, then no benefits will be payable hereunder to
such Participant or his Beneficiary, provided, that in the Company's sole
discretion, benefits may be payable in an amount reduced to compensate the
Company for any loss, cost, damage or expense suffered or incurred by the
Company as a result in any way of any such action, misstatement or
nondisclosure.

Section 8.8.  Gender, Singular and Plural.  All pronouns and any variations
thereof shall be deemed to refer to the masculine, feminine, or neuter, as the
identity of the person or persons may require.  As the context may require, the
singular may be read as the plural and the plural as the singular.

Section 8.9.  Law Governing.  This Plan shall be construed, regulated and
administered under the laws of the State of Texas, except to the extent that
such laws are preempted by ERISA.

Section 8.10.  Notice.  Any notice or filing required or permitted to be given
to the Administrative Committee or the Company under the Plan shall be
sufficient if in writing and hand delivered, or sent by registered or certified
mail, to the principal office of the Company, directed to the attention of the
Secretary of the Company. Such notice shall be deemed given as to the date of
delivery or, if delivery is made by mail, as of the date shown on the postmark
on the receipt for registration or certification.

Section 8.11.  Successors and Assigns.  This Plan shall be binding upon the
Company and its successors and assigns.

Section 8.12.  Provisions for Incapacity.  If the Administrative Committee deems
any person entitled to receive any payment under the provisions of this Plan
incapable of receiving or disbursing the same by reason of minority, illness or
infirmity, mental incompetency, or incapacity of any kind, the Administrative
Committee may, in its sole discretion, take any one or more of the following
actions: it may apply such payment directly for the comfort, support and
maintenance of such person; it may reimburse any person for any such support
theretofore supplied to the person entitled to receive any such payment; or it
may pay such payment to any other person selected by the Administrative
Committee to disburse such payment for the comfort, support and maintenance of
the person entitled thereto, including, without limitations, to any relative who
has undertaken, wholly or partially, the expense of such person's comfort, care
and maintenance, or any institution in whose care or custody the person entitled
to the payment may be.  The Administrative Committee may, in its sole
discretion, deposit any

                                      -15-
<PAGE>

payment due to a minor to the minor's credit in any savings or commercial bank
of the Administrative Committee's choice.

IN WITNESS WHEREOF, LYONDELL CHEMICAL COMPANY, acting by and through its duly
authorized officer, has caused this Instrument to be executed on this 10th day
of March, 1999.

ATTEST:                  LYONDELL CHEMICAL COMPANY

By:  JoAnn L. Beck       By:  Robert J. Millstone
    --------------          --------------------------
 Assistant Secretary        Secretary

                                      -16-
<PAGE>

                     AMENDMENT TO LYONDELL CHEMCIAL COMPANY
               ELECTIVE DEFERRAL PLAN FOR NON-EMPLOYEE DIRECTORS

     This Amendment to Lyondell Chemical Company Elective Deferral Plan for Non-
Employee Directors ("Amendment") is entered into by Lyondell Chemical Company on
January 3, 2000, effective as of December 2, 1999.

                                   RECITALS:
                                   ---------

     WHEREAS, Section 3.3 of the Lyondell Chemical Company Elective Deferral
Plan for Non-Employee Directors, as amended and restated effective October 16,
1998 (the "Plan"), provides that the deferral accounts of participating
directors shall be credited with interest compounded annually; and

     WHEREAS, compounding interest on a monthly basis is a fairer treatment of
these deferred amounts and is consistent with the deferral plan for executive
officers and other key employees of the Company; and

     WHEREAS, the Board of Directors, at its meeting on December 2, 1999,
approved an amendment to the Plan providing for monthly compounding of interest;

     NOW, THEREFORE, the Company hereby agrees that:

     1.   Effective January 1, 2000, the first sentence of Section 3.3 of
the Plan be amended to read as follows in its entirety:

     "Except as provided in Section 4.8, the Accounts shall be credited as of
     each Valuation Date with interest based on the rates specified below,
     compounded monthly."

     2.   Except as otherwise expressly amended hereby, the Plan is ratified and
confirmed and all the terms and provisions thereof shall remain in full force
and effect.

     IN WITNESS WHEREOF, LYONDELL CHEMICAL COMPANY, acting by and through its
duly authorized officer, has caused this Amendment to be executed on this 3rd
day of January, 2000.

ATTEST:                                 LYONDELL CHEMICAL COMPANY

By: /s/ Katie-Pat Bowman                By: /s/ Gerald A. O'Brien
      --------------------                ------------------------
            Assistant Secretary          Vice President

                                      -17-<PAGE>

                                                                EXHIBIT 10.25(b)

                   Second Amendment to Amended and Restated
                         Limited Partnership Agreement

     This Second Amendment to the Amended and Restated Limited Partnership
Agreement of Equistar Chemicals, LP, dated as of February 16, 1999 (this "Second
Amendment"), is entered into by and among Lyondell Petrochemical G.P. Inc.,
Lyondell Petrochemical L.P. Inc., Millennium Petrochemicals GP LLC, Millennium
Petrochemicals LP LLC, Occidental Petrochem Partner 1, Inc., Occidental
Petrochem Partner 2, Inc., and Occidental Petrochem Partner GP, Inc.
("Occidental GP").

     Whereas, on May 15, 1998, PDG Chemical Inc. and the parties hereto other
than Occidental GP entered into the Amended and Restated Limited Partnership
Agreement of Equistar Chemicals, LP;

     Whereas, as of June 30, 1998, PDG Chemical Inc. and the parties hereto
entered into the First Amendment to Amended and Restated Limited Partnership
Agreement of Equistar Chemicals, LP (the "First Amendment"; the Amended and
Restated Limited Partnership Agreement of Equistar Chemicals, LP, as amended by
the First Amendment is herein referred to as the "1998 Partnership Agreement"),
whereby, among other things, PDG Chemical Inc. withdrew from Equistar Chemicals,
LP, and Occidental GP became a general partner thereof; and

     Whereas, the parties hereto wish to amend the 1998 Partnership Agreement
to, among other things, revise the definition of "Oxy Guaranteed Debt" in the
Appendix thereof.

     Now, Therefore, the parties to this Second Amendment agree as follows:

     1.  All capitalized terms that are defined in the 1998 Partnership
Agreement, but are not defined in this Second Amendment, shall have the same
meanings as defined in the 1998 Partnership Agreement.

     2.  Clause (xxii) of Section 6.7 of the 1998 Partnership Agreement is
amended  (a) to delete the words "Oxy Guaranteed Debt" the four times they
appear in such clause (xxii) and substitute the words "Oxy Reference Debt" in
their place and (b) to add in the proviso, after the words "or its successors",
the following words: "or the reference for determination of the amount of the
obligation of OCC to contribute to the Partnership pursuant to an indemnity by
OCC in favor of the Partnership issued pursuant to the Letter Agreement, dated
as of February 16, 1999, between OCC and the Partnership,".

     3.  The definition of "Amended and Restated Indemnity Agreement" in
Appendix A of the 1998 Partnership Agreement is deleted and the following
definition is substituted in its place"

     "Amended and Restated Indemnity Agreement.  The Second Amended and Restated
Indemnity Agreement, dated as of February 16, 1999, among Lyondell GP,

                                      -1-
<PAGE>

Lyondell LP, Millennium GP, Millennium LP, Millennium America, PDG Chemical
Inc., Occidental LP1, Occidental LP2, OCC, and Occidental GP, as amended from
time to time."

     4.  The definition of "Oxy Guaranteed Debt" in Appendix A of the 1998
Partnership Agreement is deleted and the following definition is substituted in
its place:

     "Oxy Reference Debt.  The $419,700,000 drawdown under the Bank Credit
Agreement pursuant to Section 8.6(a) and the portion, if any, of any debt that
refinances the $419,700,000 drawdown under the Bank Credit Agreement or any
subsequent refinancing thereof (in any case, not to exceed an aggregate of
$419,700,000 principal amount), in each case to the extent (a) (i) such debt is
guaranteed by OCC or an Affiliate thereof and (ii) and the proceeds thereof have
been distributed to Occidental LP2 pursuant to Section 3.1(g) or (b) such debt
is the reference for determination of the amount of the obligation of OCC to
contribute to the Partnership pursuant to an indemnity by OCC in favor of the
Partnership issued pursuant to the Amended and Restated Letter Agreement, dated
as of February 16, 1999, between OCC and the Partnership.

     5.  Except as amended by this Second Amendment, all the terms and
provisions of the 1998 Partnership Agreement shall remain in full force and
effect.

     6.  This Second Amendment may be executed by one or more of the parties
hereto in any number of separate counterparts, and all of such counterparts
taken together shall be deemed to constitute one and the same instrument.

     7.  This Second Amendment shall be governed by and construed in accordance
with the laws of the State of Delaware, without giving effect to any conflicts
of law principles.

                                      -2-
<PAGE>

     In Witness Whereof, the parties hereto have executed and delivered this
Second Amendment as of the date first above written.

                       LYONDELL PETROCHEMICAL G.P. INC.

                       By: /s/ Edward W. Rich
                          ----------------------------------
                       Name:  Edward W. Rich
                       Title: Vice President and Treasurer

                       LYONDELL PETROCHEMICAL L.P. INC.

                       By: /s/ Edward W. Rich
                          ----------------------------------
                       Name:  Edward W. Rich
                       Title: Vice President and Treasurer

                       MILLENNIUM PETROCHEMICALS GP LLC

                       By: MILLENNIUM PETROCHEMICALS INC.
                           as manager

                       By:   /s/  C. William Carmean
                          ----------------------------------
                       Name:  C. William Carmean
                       Title: Vice President--Legal

                       MILLENNIUM PETROCHEMICALS LP LLC

                       By: MILLENNIUM PETROCHEMICALS INC.
                           as manager

                       By:  /s/  C. William Carmean
                          ----------------------------------
                       Name:  C. William Carmean
                       Title: Vice President--Legal

                       OCCIDENTAL PETROCHEM PARTNER 1, INC.

                       By:  /s/  J.R. Havert
                          ----------------------------------
                       Name:  J.R. Havert
                       Title: Assistant Treasurer

                                      -3-
<PAGE>

                       OCCIDENTAL PETROCHEM PARTNER 2, INC.

                       By:  /s/  J.R. Havert
                          ----------------------------------
                       Name:  J.R. Havert
                       Title: Vice President and Treasurer

                       OCCIDENTAL PETROCHEM PARTNER GP, INC.

                       By:  /s/  J.R. Havert
                          ----------------------------------
                       Name:  J.R. Havert
                       Title: Assistant Treasurer

                                      -4-

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