Document:

SUPPLEMENTAL PENSION BENEFIT PLAN

 EXHIBIT 10.3

 SUPPLEMENTAL PENSION BENEFIT PLAN

 as Amended and Restated as of January 1,
   1999

 SECTION 1. INTRODUCTION

  1.1 Background. Caterpillar Inc. has amended the Retirement
   Income Plan to limit the monthly amount payable to employees, retired
   employees and former employees who are receiving pension benefits under that
   plan so that benefits payable under that plan cannot exceed the maximum
   pension benefit limitations imposed by Sections 401(a)(17) and 415 of the
   Internal Revenue Code of 1986, as amended (the "Code"). This
   Supplemental Pension Benefit Plan (the "Plan"), as set forth in
   the succeeding Sections of this document, provides additional pension
   benefits to persons hereinafter described who are eligible for benefits
   under this Plan and supplements monthly amounts of retirement income payable
   under such Retirement Income Plan. The Plan has also been amended to provide
   benefits that would have accrued under the Retirement Income Plan but for
   the employee's election to defer salary or incentive compensation under the
   Company's Supplemental Employees' Investment Plan or Deferred Employees'
   Investment Plan.

  1.2 Use of Terms. Certain terms, as
   used in this Plan, are defined in Section 8 or elsewhere in this Plan, and
   are capitalized, and when so used shall have the defined meanings given to
   them in this Plan.

 SECTION 2. ELIGIBILITY

  2.1 Eligibility for and Accrual of Benefits. The Plan, as set
   forth below, applies only to persons who from time to time are receiving,
   are eligible to receive or are accruing retirement income on or after the
   Effective Date under the Retirement Income Plan. An employee shall accrue
   benefits under this Plan in accordance with the provisions of subsections
   3.1, 3.2 and 3.4 hereof so long as he remains covered under the Retirement
   Income Plan and 1) his compensation exceeds the limitation imposed by Code
   Section 401(a)(17), as adjusted for cost-of-living pursuant to that Section,
   2) his benefits under that plan are limited by Code Section 415, as adjusted
   for cost-of-living pursuant to that Section, or 3) he loses benefits that
   would have accrued under the Retirement Income Plan but for his election to
   defer salary or incentive compensation under the Company's Supplemental
   Employees' Investment Plan or Deferred Employees' Investment
   Plan.

 SECTION 3. PAYMENT OF BENEFITS

 3.1 Benefit Formula. A monthly
   supplemental pension benefit will be payable under this Plan to an Eligible
   Person in each month equal to the excess of (a) the amount of retirement
   income that would be payable to such person for that month under the
   Retirement Income Plan but for the limitations contained in subsections 4.6
   and 4.8 of the Retirement Income Plan, as amended, over (b) the amount
   actually paid to such person for that month under the Retirement Income
   Plan.

 	Exhibit 10.3	 Page 1 of 5

   

  3.2 Future Adjustments. Supplemental pension benefit amounts
   payable under this Plan may be adjusted to take into account future
   amendments to the Retirement Income Plan, increases in retirement income
   that are granted under the Retirement Income Plan due to cost-of-living
   increases or other factors and adjustments made by the Secretary of the
   Treasury (in regulations or otherwise) to the limitations under Code
   Sections 401(a)(17) and 415 such that the total amount payable to an
   Eligible Person under this Plan and the Retirement Income Plan shall equal
   the monthly amount of retirement income that would be payable under the
   Retirement Income Plan in the absence of subsections 4.6 and 4.8 of the
   Retirement Income Plan.

  3.3 Commencement of Benefits. Benefits
   shall commence under this Plan on the first day of the month on or after the
   Effective Date that benefits become payable to an Eligible Person in
   accordance with subsection 3.1 hereof and shall continue thereafter so long
   as benefits are payable in accordance with subsections 3.1 and 3.2
   hereof.

 3.4 Elective Deferrals. A monthly
   supplemental pension benefit shall be payable under this Plan to an Eligible
   Person in an amount equal solely to the amount of benefits that he would
   have accrued under the Retirement Income Plan but for his election to defer
   salary or incentive compensation under the Company's Supplemental Employees'
   Investment Plan or Deferred Employees' Investment Plan; provided, however,
   that such benefit shall not duplicate any benefit provided pursuant to
   subsections 3.1 or 3.2 hereof.

 SECTION 4. OPTIONAL RETIREMENT BENEFITS

 If, in lieu of monthly normal retirement
   income payable under the Retirement Income Plan, an Eligible Person receives
   optional retirement benefits under that plan, then optional pension benefits
   (to the extent not otherwise payable under the Retirement Income Plan
   because of the limitations contained in subsections 4.6 and 4.8 thereof)
   will also be payable in the same form under this Plan; except that the joint
   and survivor annuity described in subsection 6.3 of the Retirement Income
   Plan, as amended, shall be applicable solely to benefits payable under that
   plan and shall not be available under this Plan.

 SECTION 5. FINANCIAL PROVISIONS

  No funding of benefits shall be required, and any benefits payable
   under this Plan shall be payable by the Company.

 	Exhibit 10.3	 Page 2 of 5

   

 SECTION 6. AMENDMENT AND TERMINATION

 While the Company expects and intends to continue the Plan, it must
   necessarily reserve the right to modify, amend or terminate the Plan in
   whole or in part, at any time. Accordingly, the Company reserves the right
   to amend, modify, suspend or terminate the Plan, in whole or in part, at any
   time by action of its Board of Directors; provided, however, that the
   Vice-President of Human Services Division, acting together with the Chairman
   of the Board of the Company, may amend this Plan if such amendment does not
   involve an annual cost to the employers under this Plan of more than
   $500,000 per year and if such amendment does not change the duties and
   responsibilities of the committees and persons designated to administer this
   Plan.

 SECTION 7. MISCELLANEOUS PROVISIONS APPLICABLE TO THE
   PLAN

   7.1 Vested Rights. Any Eligible Person who is fully vested in
   his retirement income benefits under the Retirement Income Plan shall be
   fully vested in his right to receive his accrued additional pension benefits
   under this Plan upon his retirement under the Retirement Income Plan; and
   any such pension benefits so vested and accrued shall be
   non-forfeitable.

   7.2 Benefits Not Assignable.
   Except insofar as may be contrary to federal law or to the laws of any state
   and jurisdiction in the premises and except as further provided hereunder,
   benefits under the Plan are not in any way subject to the debts or other
   obligations of the persons entitled to such benefits, and may not be
   voluntarily or involuntarily sold, transferred or assigned; except
   that

 
(a) any person who is entitled to benefits
   under this Plan may assign his benefits hereunder to the Company for the
   sole purpose of repaying (in whole or in part) the amount of any overpayment
   made under this Plan;

 (b) any person entitled to benefits under this
   Plan also may assign any portion of such benefits otherwise due hereunder to
   any lawful taxing authority for the purpose of payment of any taxes which
   are due or may become due on account of such benefits; and

 (c) any person entitled to benefits under this
   Plan may assign such benefits to a bank for the purpose of depositing them
   in his account in such bank, provided such assignment is pursuant to and in
   accordance with a current applicable bank agreement between such person and
   the bank and is filed with the Company.

 
  Any assignment made in accordance with the
   foregoing, except one made pursuant to paragraph (a) above, shall be
   revocable at any time by the person who shall have authorized it, and any
   payment pursuant to any such assignment will constitute a complete discharge
   of any liability under the Plan for payment of such amount.

 	Exhibit 10.3	 Page 3 of 5

   

  7.3 Plan Administered by Company. The Plan will be
   administered by the Company, and the Company reserves the power to adopt
   such rules of procedure and regulations, which shall be applied in a uniform
   and nondiscriminatory manner, as it deems necessary to administer the Plan
   and to determine all questions arising under the Plan; provided, however,
   that the Company, by resolution of its Board of Directors, may designate any
   person, committee, board or similar body to act as named fiduciary or
   fiduciaries under the Plan and allocate any and all of its duties and
   responsibilities under the Plan to such named fiduciary or fiduciaries. If
   the Board of Directors allocates any of its duties and responsibilities
   under the Plan to a named fiduciary, such named fiduciary shall be
   substituted for the Company wherever such term appears under the Plan with
   respect to any duties and responsibilities so allocated. Such named
   fiduciary or fiduciaries may designate other persons to carry out its
   fiduciary responsibilities under the Plan.

   7.4 Facility of Payment. If the
   Company shall receive evidence satisfactory to it (1) that a payee entitled
   to receive any payment provided for in the Plan is physically or mentally
   incompetent to receive such payment and to give a valid release therefor,
   (2) that another person or an institution is then maintaining or has custody
   of such payee, and (3) that no guardian, committee or other representative
   of the estate of such payee shall have been duly appointed, the Company, in
   its discretion, may make the payment to such other person or institution and
   the release of such other person or institution shall be a valid and
   complete discharge for the payment. In the absence of the appointment of a
   legal guardian, any minor's share may be paid to such adult or adults as
   have, in the opinion of the Company, assumed the custody and principal
   support of such minor.

   7.5 Company Action. Any action
   (to the extent not allocated under subsection 7.3) required or permitted to
   be taken by the Company under the Plan (other than to amend or terminate the
   Plan) may be taken by the Vice-President of Human Services Division or the
   Chairman of the Board of the Company or any other person designated by
   either or both of them. The Plan shall be amended or terminated in
   accordance with the provisions of Section 6.

   7.6 Small Payments. If the
   monthly amount of supplemental pension benefits to which any person is
   entitled under the provisions of this Plan at any time shall be less than
   twenty dollars ($20) per month but more than nine dollars and ninety-nine
   cents ($9.99), pension payments may be made quarterly, each such quarterly
   payment to be in an amount equal to the sum of the monthly amounts that
   would otherwise have been payable during the same quarter, and to be made on
   the first day of the third month of such quarter. If the monthly benefits to
   which any person would otherwise be entitled under the plan at any time
   shall be less than ten dollars ($10) per month, there may be paid to such
   person, in lieu of monthly pension payments, a cash payment in an amount
   which is the actuarial equivalent (as determined by the Actuary) of such
   monthly pension benefits.

 	Exhibit 10.3	 Page 4 of 5

   

 SECTION 8. DEFINITIONS

 

 As used herein:

 	 8.1  

   	 	 "Actuary" means an actuary
     selected by the Company who is not an employee of the Company and who is a
     Fellow of the Society of Actuaries, or       
      a firm of actuaries selected by the Company, at least one of the
     members or officers of which is a Fellow of the Society of
     Actuaries.

   
	 8.2

   	 	  "Company" means Caterpillar Inc.
     or any successor to it by merger, consolidation, reorganization or
     otherwise.

   
	 8.3

   	 	  "Effective Date" means January 1,
     1976.

   
	 8.4

   	 	  "Eligible Person" means a person
     described in subsection 2.1 of the Plan.

   
	 8.5

   	 	  "Plan" when used without any
     modification or qualification thereof means this Supplemental Pension
     Benefit Plan.

   
	 8.6

   	 	  "Retirement Income Plan" means
     the Retirement Income Plan which has been adopted by Caterpillar Inc. and
     certain of its subsidiaries.

   

 
 
 
 

  

  

  

  

  

  

  

  

 	Exhibit 10.3		 Page 5 of 5SUPPLEMENTAL EMPLOYEES INVESTMENT PLAN

 
  
 

   

 EXHIBIT 10.4

 CATERPILLAR INC.

 SUPPLEMENTAL EMPLOYEES'

 INVESTMENT PLAN

 (Conformed as of January 1, 1998)

 1. Purpose

 The purpose of the Caterpillar Inc. (Company)
   Supplemental Employees' Investment Plan (SEIP), as set forth in the
   succeeding sections of this document, is to provide additional investment
   opportunities for those employees whose participation in the Employees'
   Investment Plan (EIP) is restricted because of the limitations imposed by
   Section 401(a)(17) and 415(c)(1)(A) of the Internal Revenue Code of 1986, as
   amended, or any successor statute thereto (hereinafter referred to as the
   "Limitation"). The SEIP shall be effective October 14,
   1987.

 2. Eligibility

 An employee shall be eligible for the SEIP if
   he is participating in the EIP and his contributions and related employer
   contributions to Part 1 after 1987 can reasonably be expected to be
   restricted by the Limitation. As used herein, "Part 1" refers to
   the EIP without the Special Investment Supplement thereto. In addition,
   effective December 1, 1994, an employee shall be eligible for the SEIP
   if he is participating in the EIP and contributions to his account in the
   Special Investment Supplement ("Part 2") are restricted because of
   the Limitation.

 3. Participant Deferrals

 An employee must make a valid election (to
   become a "Participant") on or before the last Company business day
   in November of any year to participate in the SEIP during the following
   calendar year. Such election shall defer all or a portion of his
   compensation that would otherwise qualify as participant contributions under
   Part 1, Part 2 or both were it not for the Limitation. Any such election
   must be made (on a form provided by the Company) and delivered to the
   Director, Compensation and Benefits before the end of normal office hours on
   such last Company business day in November and shall remain in effect until
   it is revised as provided herein.

 If a Participant wants to change or terminate
   the amount of compensation deferred, he shall deliver a revised election
   form to the Director, Compensation and Benefits; provided, however,
   that

 	(i) 	 such revised election shall become effective (when and so long as
     the Participant is eligible) for each calendar year following the year in
     which such form is delivered, and shall remain effective until such
     election is further revised as provided herein, and
	(ii) 	any such election must be filed before the
     end of normal office hours on the last Company business day in
     November.

  

 	Exhibit 10.4	 Page 1 of 4

   

  

  

 When an employee first becomes eligible to participate in the SEIP
   (including those employees who first become eligible on the effective date),
   he may elect to defer compensation (or file a revised election) in
   accordance with the foregoing, except that any such election with respect to
   compensation payable to him during the calendar year in which he becomes
   eligible for the SEIP

 
	(i)	must be filed within a 30-day period that
     begins on the date he becomes eligible, and
	(ii)	shall be applicable only to compensation
     paid for months that commence after the date of such election.

 
 4. Employer Amounts

 An employee will be credited with the same
   amount that would otherwise be contributed to his account as an employer
   contribution under Part 1 were it not for the Limitation.

 5. Status of Accounts

 All amounts in the SEIP shall be held in the
   general funds of the Company, but the Company will establish an individual
   bookkeeping account for each Participant. Amounts of compensation deferred
   by the Participant and employer amounts related to such compensation will be
   credited to the individual account of the Participant in accordance with his
   election(s).

 Each Participant may elect to have all or a
   specified percentage of his deferred compensation allocated to:

 (a) an interest account,

 	(b) 	a stock account and treated as though it
     were invested in Company common stock ("Stock Election"),
     or
	(c) 	a mutual fund account or accounts and
     treated as though it were invested in any of the following Preferred Group
     funds: Asset Allocation, Growth, International, Small Cap or
     Value.

 Amounts allocated to the stock account of a
   Participant who is an officer of the Company subject to Section 16 of the
   Securities Exchange Act of 1934 ("Officer") may not be transferred
   to another of his accounts (nor may amounts allocated, respectively, to any
   such other account be transferred to his stock account) until at least six
   months after he ceases to be subject to such Section.

 Under such a Stock Election, dividend
   equivalents will accrue to the account (when dividends are payable) and will
   be reinvested and a Participant's account will in all other respects reflect
   share ownership for events such as a stock split but no voting rights will
   exist. The number of shares of stock equivalents shall be determined by
   dividing the amount of deferred compensation (or dividend equivalents
   credited) by the closing price of Company common stock on the New York Stock
   Exchange on the date of such deferral or dividend credit (or the next
   succeeding trading day if there is no trading on that date). Stock
   equivalents will be valued based on the closing price of Company common stock on the New York
   Stock Exchange as of the effective date of a transfer into or out of the
   stock account ("Transfer"), the date on which the Participant
   terminates employment, the date of distribution elected by the Participant
   hereunder or the date as of which he is considered totally and permanently
   disabled under EIP, whichever date applies (or the next succeeding trading
   day if there is no trading on that date). 

 	Exhibit 10.4	 Page 2 of 4

   

  

 The Company will credit interest accounts on a
   quarterly basis. The interest rate will be equal to the base corporate
   lending rate (sometimes referred to as the "prime rate")
   applicable to commercial lending customers of Citibank, N.A., New York, New
   York (or any successor thereto) on the last business day of each calendar
   quarter. The annual interest rate will be divided by four and applied
   effective the last day of each quarter to the average daily amount in each
   Participant's account in that quarter. In any calendar quarter in which a
   Participant does not have amounts credited to his account for the entire
   period of that quarter, interest will be credited pro rata based on the
   number of business days that amounts are credited to his account in that
   quarter compared to the total number of business days in that
   quarter.

 Participants who are not Officers may Transfer
   or make changes to the investment allocation of future deferred compensation
   which shall be effective as of the first day of a calendar quarter, provided
   that such Participant shall have filed an appropriate form with the
   Director, Compensation and Benefits, by the twentieth (20th) day of the
   preceding month.

 All amounts in the SEIP and the establishment
   of individual bookkeeping accounts shall not be deemed to have created a
   trust, and no Participant shall have any ownership interest in any such
   account. A Participant's rights to any amounts credited to his account shall
   not be transferable or assignable. Each Participant will receive an annual
   report showing the status of his account at the close of each calendar
   year.

 6. Disbursement

 Following his termination of employment with
   the Company (or total and permanent disability), the value of the
   Participant's SEIP account will be payable to him as soon as practicable in
   cash, in a lump sum (including interest up to the date of payment) unless
   such Participant has elected a later payment date in writing that is
   acceptable to and approved by the Director, Compensation and Benefits;
   provided, however, that no such election shall be effective unless it shall
   have been filed on or before the last Company business day in November of
   the calendar year preceding the calendar year of such termination. A
   Participant may elect, either before or after termination of employment, an
   installment distribution for a period of up to 15 years; provided, however,
   that an election of installment distribution shall be effective only if it
   shall have been filed with the Director, Compensation and Benefits, before
   November 30 of the second year that precedes the year in which the
   distribution would otherwise occur.

 Notwithstanding the foregoing, effective for
   amounts deferred after December 31, 1996 (and any earnings
   thereon):

  (a) a Participant may elect one original
   scheduled withdrawal date as of which disbursement of elected amounts (and
   any earnings thereon) shall occur; provided that (i) such original date
   shall be the first day of any calendar quarter that is at least four years
   later than the year in which such an amount is deferred, and (ii) the
   Participant may change such original date to a later date; provided,
   however, that such change shall be effective only if it shall have been
   filed with the Director, Compensation and Benefits, before November 30 of
   the second year that precedes the year that includes such original
   date;

 

 	Exhibit 10.4	 Page 3 of 4

   

      (b) a Participant may elect unscheduled withdrawals of between 5% and
   100% of account assets attributable to such amounts deferred after December
   31, 1996 (and any earnings thereon); provided that (i) the amount withdrawn
   shall be subject to a forfeiture equal to 10%, and the Participant shall
   discontinue participation in the plan for the remainder of the year (in
   which such withdrawal occurs) and for the following year and (ii) the
   minimum withdrawal amount (before forfeiture) shall be $10,000;
   and

 (c) such withdrawals under (a) or (b) shall be
   applied against the assets of the Deferred Employees' Investment Plan as
   well as this plan, and shall be subject to such other rules of convenience
   and administration as shall be determined by the Director, Compensation and
   Benefits.

 

 

 7. Death of a Participant

 Upon the death of a Participant prior to
   payment of his SEIP account, the balance in the Participant's account
   (including interest for the elapsed portion of the year of death) shall be
   determined as of the date of death. Such balance shall be paid as soon as
   reasonably possible thereafter in a lump sum payment to (i) the same
   beneficiary or beneficiaries and in the same proportionate amount as he
   shall have designated under the EIP, in the absence of any designation to
   the contrary, or (ii) the beneficiary or beneficiaries for purposes of the
   SEIP as such Participant shall have designated in writing (in a form
   acceptable to, and filed with, the Director, Compensation and
   Benefits).

 8. Amendment or Termination

 The Compensation Committee of the Board of
   Directors or the Investment Plan Committee (for EIP) may at any time amend,
   merge, consolidate or terminate the SEIP, but no amendment, merger,
   consolidation or termination will have the effect of reducing the amount
   that any Participant is entitled to receive prior to such amendment, merger,
   consolidation or termination nor of changing the time of payment of any
   amount credited to a Participant's account.

 9. Administration

 Except as otherwise expressly provided herein,
   the SEIP shall be administered under the direction of the Director,
   Compensation and Benefits, of the Company.

  

 	Exhibit 10.4	 Page 4 of 4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}]]