Document:

exv10w2

Exhibit 10.2

CONSULTING AGREEMENT

     This Consulting Agreement (“Agreement”) is entered into as of this 16th day of August, 2010,
to be effective as of September 1, 2010, between Penson Worldwide, Inc. (“Company”) and Holland
Consulting, LLC, a Texas limited liability company (“Consultant”).

RECITALS:

     Whereas, the Company desires to engage Consultant in accordance with the terms of this
Agreement and the Consultant desires to be engaged to perform consulting services.

AGREEMENT:

     The parties hereto agree as follows:

     1. Term. The term of this Agreement (the “Term”) shall begin September 1, 2010 and
end on December 31, 2012, unless (a) terminated prior to such date pursuant to the terms hereof or
(b) extended by mutual written agreement between Company and Consultant.

     2. Services. During the Term, the Consultant agrees to perform the following services
for Company all of which shall be performed solely by Daniel P. Son to the reasonable satisfaction
of the Company and/or its affiliates (collectively “Penson Group”) in compliance with applicable
law and regulations applicable to Consultant and/or members of the Penson Group (provided that
Daniel P. Son shall not provide services for Consultant to the Company that exceed 20% of the time
he previously worked for the Company as an employee on the basis of a 40 hour standard week):

          (a) Attend meetings at the offices of the Penson Group at such times mutually agreed to by
Consultant and Company; provided that Consultant is given reasonable prior notice of the time and
place of each such meeting; and

          (b) Be available to the senior management of the Penson Group for telephone consultation, as
needed, at reasonable times during normal work days.

     3. Consideration and Compensation.

          (a) Periodic Payments. For Consultant’s services hereunder, Consultant shall receive
$14,584 per month from the Company paid and payable during the Term on a semi-monthly basis.
Consultant will be paid as an independent contractor and will receive a Form 1099 (or other form
required by the Internal Revenue Service) relating to the compensation paid to Consultant pursuant
hereto. No amounts will be withheld from payments made to Consultant for employment or similar
taxes unless required in accordance with applicable laws and regulations as reasonably determined
by the Company.

          (b) Reimbursement of Expenses. The Company will reimburse Consultant from time to
time for all reasonable and necessary out-of-pocket business expenses incurred in rendering
services under and pursuant to this Agreement. Reimbursement will be consistent with the then
existing policies and procedures of Company.

 

 

          (c) Support. During the Term, Consultant will be entitled to receive, at the
Company’s expense, a computer, computer support, access to email and quotation systems, provision
of office space and secretarial support reasonably satisfactory to Consultant and the Company and
as may be required for performance of the terms of this Agreement. Company shall also provide to
Consultant at Consultant’s expense the identical parking space provided for Daniel P. Son while he
was employed with Company.

     4. Termination. Consultant, in its discretion, may terminate this Agreement by giving
the Company written notice at least sixty (60) days in advance of such termination. The Company may
terminate this Agreement by giving Consultant written notice at least sixty (60) days in advance of
such termination in the event the Company is not reasonably satisfied with Consultant’s services.
Notwithstanding the foregoing to the contrary, each party shall also give the other party written
notice at least thirty (30) days in advance if termination occurs as a result of a breach of the
letter agreement dated the date hereof between the Company and Daniel P. Son (“Letter Agreement”)
by the other party.

     5. Indemnification/Other. The Company shall indemnify Consultant to the same extent
that Daniel P. Son is indemnified in his capacity as an officer and director under that certain
Indemnification Agreement (herein so called) entered into as of August 1, 2005 between Company and
Daniel P. Son, as Indemnitee subject to the conditions and limitations set forth therein. The
parties acknowledge that the Indemnification Agreement remains in full force and effect, and is
incorporated herein by this reference; each party also attorns to such agreement by executing this
Agreement with references therein to Daniel P. Son being broadly construed as applicable to
Consultant. Consultant agrees that Section 4(c) in the Letter Agreement applicable to Daniel P. Son
shall be deemed to be binding on Consultant as though set forth herein.

     6. Confidentiality.

          (a) The parties acknowledge that, in order to permit the Consultant to successfully
perform and/or continue to perform the services for which it was contracted by the Company, it
is necessary for the Company to provide the Consultant with access to certain valuable
proprietary information and knowledge of certain modes of business operation (“Confidential
Information”) which are essential to the profitable operation of the Penson Group, and which
give the Penson Group a competitive advantage over other firms pursuing related business
activities. In the context of this Agreement, the term “Confidential Information” shall be
deemed to include

               (i) the identity of the Penson Group’s clients, investors, joint venturers, or customers;

               (ii) computer software or data of any sort developed (in the case of software) or compiled
(in the case of data) by the Penson Group;

               (iii) the fact that the Penson Group uses, has used, or has evaluated for potential use a
particular computer program or system, or any particular database or source of data, supplied
by a party other than the Penson Group;

               (iv) trading and order execution strategies developed, investigated, acquired, evaluated,
modified, tested, or employed by the Penson Group, or any information

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related to, or that might
reasonably be expected to lead to the development of such strategies, whether or not such
information is embodied in a computer program;

               (v) any information that would typically be included in the Penson Group’s financial
statements, including, but not limited to the amount of the Penson Group’s assets, liabilities,
net worth, revenues, expenses, or net income;

               (vi) non-public information related to financial or other products developed, acquired,
researched, or modified by the Penson Group; and

               (vii) any other information gained in the course of the Consultant’s relationship with the
Company that could reasonably be expected to prove deleterious to the Penson Group if disclosed
to third parties, including without limitation any information that could reasonably be
expected to aid a competitor or potential competitor of the Penson Group (a “Competitor”) in
making inferences regarding the nature of the Penson Group’s business activities, where such
inferences could reasonably be expected to allow such a Competitor to compete more effectively
with the Penson Group.

          (b) (i) The Consultant acknowledges that it has acquired and/or will acquire Confidential
Information in the course of or incident to its relationship with the Company, and that the
ability of the Penson Group to continue in business could be seriously jeopardized if such
Confidential Information were to be used by the Consultant or by other persons or firms to
compete with the Penson Group. Accordingly, the Consultant agrees that it shall not, directly
or indirectly, at any time, during the term of this Agreement or at any time thereafter, and
without regard to when or for what reason, if any, such relationship shall terminate, use or
cause to be used any such Confidential Information, whether acquired prior to or subsequent to
the
execution of this Agreement, in connection with any activity or business except the
business of the Penson Group, and shall not disclose such Confidential Information to any
individual, corporation, or other entity unless such disclosure has been specifically
authorized in writing by the Chief Executive Officer of the Company or except as may be
required by any applicable law or by order of a court of competent jurisdiction, a regulatory
or self-regulatory body, or a governmental body.

               (ii) The provisions of Section 6(b)(i) notwithstanding, the Consultant shall be free
to disclose or use any information which (A) is in or which enters the public domain prior to
the time of such disclosure or use except where such information enters the public domain as a
result of unauthorized actions of the Consultant, (B) was or becomes available to Consultant on
a non-confidential basis from a person not otherwise bound by an obligation of confidentiality
to the Company or its affiliates so long as there is no other prohibition on such person’s
transmission of information to Consultant, (C) is or was developed by Consultant without use of
Confidential Information, or (D) was known by Consultant without restrictions prior to
disclosure to Consultant by the Company or its affiliates.

               (iii) In the event that the Consultant is required to disclose Confidential Information
pursuant to judicial or administrative process or other requirements of law, the Consultant
will (A) notify the Company of its receipt of such process within 24 hours of such receipt, and
prior to any disclosure being made, (B) to the extent reasonably practicable, consult with the
Company on the advisability of taking steps to resist or narrow such request

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provided that the
ultimate decision shall be that of the Consultant, and (C) if disclosure is required or deemed
advisable, cooperate with the Company in any attempt that it may make in order to obtain an
order or other reliable assurance that confidential treatment will be accorded to designated
portions of such information. If no such order is obtained by the Company, disclosure of such
information by the Consultant shall not be deemed a violation of this Agreement. The
Consultant shall be entitled to reimbursement for its reasonable expenses, including the fees
and expenses of its counsel, in connection with action taken pursuant to this paragraph.

               (iv) The provisions of Section 6(b)(ii) notwithstanding, the Consultant shall be able to
use and disclose Confidential Information as required for the performance of its assignments in
connection with this Agreement.

          (c) Upon the termination of the Consultant’s retention by the Company for any reason, the
Consultant promises and agrees to return immediately to the Company any and all Confidential
Information and all other materials or documents, including without limitation mailing lists,
rolodexes, computer print-outs, and computer disks and tapes, belonging to the Company which
contain information pertaining to the Penson Group’s business, methods, clients, potential
clients, or employees, unless the Company consents in writing to the Consultant’s retention
thereof.

          (d) All right, title and interest of every kind and nature whatsoever, whether now known
or unknown, in and to any intellectual property (“Intellectual
Property”), including any inventions, trade secrets, patents, trade-marks, service marks,
trade dress, trade names, copyrights, films, video media, scripts, tests, software,
applications, creations and properties invested, created, written, developed, taped, filmed,
furnished, produced or disclosed by or to the Consultant in the course of rendering services to
the Company under this Agreement shall, as between the parties hereto, be and remain the sole
and exclusive property of the Company for any and all purposes and uses whatsoever, and the
Consultant and the Consultant’s successors and assigns shall have no right, title, or interest
of any kind or nature therein or thereto, or in or to any results and proceeds therefrom. Any
works of authorship shall be “works made for hire” to the maximum extent permitted by law.

          (e) Nothing contained in this Agreement shall be deemed to weaken or waive any rights
related to the protection of trade secrets that the Company may have under common law or any
applicable statutes. The provisions of this Section 6 shall survive termination of this
Agreement.

     7. Entirety of Agreement. This Agreement supersedes all other agreements, either oral
or in writing, between the parties relating to the engagement of the Consultant by the Company. It
contains all of the covenants and agreements between the parties with respect to that engagement.
Each party to this Agreement acknowledges that no representations, inducements, promises, or
agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any
party, that are not embodied in this Agreement, and that no other agreement, statement, or promise
will be valid or binding.

     8. Notices. All notices, requests, demands, claims, and other communications

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hereunder
will be in writing. Any notice, request, demand, claim, or other communication hereunder shall be
deemed duly given if (and then two business days after) it is sent by registered or certified mail,
return receipt requested, postage prepaid, or by expedited courier, next day delivery, and
addressed to the intended recipient as set forth below:

If to Company:

Penson Worldwide, Inc.

David Johnson, Chairman, Board of

 Directors Compensation Committee and
 Andrew
Koslow, General Counsel

1700 Pacific Avenue

Suite 1400

Dallas, Texas 75201

If to Consultant:

Holland Consulting, LLC

c/o Daniel P. Son

9507 Meadowbrook Drive

Dallas, Texas 75220

Any party may send any notice, request, demand, claim, or other communication hereunder to the
intended recipient at the address set forth above using any other means (including personal
delivery, messenger service, telecopy, telex, ordinary mail, or electronic mail), but no such
notice, request, demand, claim, or other communication shall be deemed to have been duly given
unless and until it actually is received by the intended recipient. Any party may change the
address to which notices, requests, demands, claims, and other communications hereunder are to be
delivered by giving the other Parties notice in the manner herein set forth.

     9. General.

          (a) Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Texas without giving effect to the conflict of laws
principles thereof.

          (b) Amendments; Waivers. This Agreement may be amended, modified, superseded,
canceled, renewed or extended, and the terms or covenants hereof may be waived, only by a written
instrument executed by the parties, or in the case of a waiver, by the party waiving compliance.
The failure of any party at any time or times to require performance of any provision hereof shall
in no manner affect the right of such party at a later time to enforce the same. No waiver by any
party of the breach of any term or covenant contained in this Agreement, whether by conduct or
otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or
continuing waiver of any such breach, or a waiver of the breach of any other term or covenant
contained in this Agreement.

          (c) No Conflict with Other Agreements/Independent Contractor. Each party represents
and warrants to the other that neither its execution of this Agreement nor the full and

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complete
performance of its obligations hereunder will violate or conflict in any respect with any written
or oral agreement or understanding with any person. The relationship between the Company and the
Consultant hereunder is agreed to be solely that of independent contractors. Nothing contained
herein and no modification of responsibility or compensation made hereafter shall be construed so
as to constitute the parties as partners or joint venturers.

          (d) Successors and Assigns. This Agreement shall inure to the benefit of and shall be
binding upon Company (and its respective successors and assigns) and Consultant (and its respective
heirs and assigns. Neither this Agreement nor any right or interest hereunder shall be assignable
by the Consultant, its beneficiaries, or legal representatives without the Company’s prior written
consent.

          (e) Captions. The section headings contained herein are for reference purposes only
and shall not in any way affect the meaning or interpretation of this Agreement.

          (f) Severability. The holding of any provision of the Agreement to be illegal,
invalid or unenforceable by a court of competent jurisdiction shall not affect any other provision
of this Agreement which shall remain in full force and effect.

          (g) Attorneys’ Fees/Equitable Relief. If any action at law or in equity is brought to
enforce or interpret the provisions of this Agreement or any other agreement or instrument provided
for herein, the prevailing party in such action shall be entitled to recover reasonable attorneys’
fees. Each party acknowledges that any breach of this Agreement may cause the other party
irreparable harm for which there is no adequate remedy at law, and as a result of this, the
non-breaching party shall be entitled to the issuance by a court of competent jurisdiction of an
injunction, restraining order, or other equitable relief in favor of itself, without the necessity
of posting a bond, restraining the breaching party from committing or continuing to commit any such
violation. Any right to obtain an injunction, restraining order, or other equitable relief
hereunder shall not be deemed a waiver of any right to assert any other remedy a party may have at
law or in equity.

          (h) Counterparts. This Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original but all such
counterparts together shall constitute one and the same instrument.

[EXECUTION ON FOLLOWING PAGE]

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     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	PENSON WORLDWIDE, INC.

 	 
	 	By:  	/s/ David Johnson
 	 
	 	 	David Johnson, 	 
	 	 	Chair, Board of Directors Compensation
Committee 	 
	 
	 	HOLLAND CONSULTING, LLC:

 	 
	 	By:  	/s/ Daniel P. Son
 	 
	 	 	Daniel P. Son,  	 
	 	 	Managing Member 	 
	 

7exv10w1

Exhibit 10.1

Sterling Chemicals, Inc.

Fifth Amended and Restated Severance Pay Plan

Preliminary Statements

	 	A.	 	Sterling Chemicals, Inc., a Delaware corporation, currently maintains a Fourth
Amended and Restated Severance Pay Plan (as amended, the “Existing Plan”).
	 
	 	B.	 	The Board of Directors of Sterling Chemicals, Inc. desires to amend the Existing
Plan in certain respects and to restate the Existing Plan as so amended in its entirety.

          Now, Therefore, the Existing Plan is hereby amended and restated, effective as of the
Effective Date (as defined below), to read in its entirety as follows:

Article I

Definitions and Interpretations

          Section 1.01. Definitions. Capitalized terms used in this Plan shall have the
following respective meanings, except as otherwise provided or as the context shall otherwise
require:

     “Applicable Multiplier” has the meaning specified in Section 2.02(a).

     “Base Salary” has the meaning specified in Section 2.02(a).

     “Benefit Plan” means any employee benefit plan (including any employee benefit
plan within the meaning of Section 3(3) of the Employee Retirement Income Security Act of
1974), program, arrangement or practice maintained, sponsored or provided by the Company or
any Subsidiary, including those relating to bonuses, incentive compensation, retirement
benefits, stock options, stock ownership or stock awards, healthcare and medical benefits,
disability benefits, death benefits, disability, life, accident and travel insurance, sick
leave, vacation pay or termination pay, as amended, or any successor to any of such plans.

     “Benefit Service” means, with respect to any Participant, (i) the number of years
of service as of December 31, 2004 which is recognized by the Company for such Participant for
benefit calculation purposes under the Pension Plan plus (ii) the number of years of service
by such Participant with the Company during the period commencing on January 1, 2005 and
ending on such Participant’s Termination Date; provided, however, that any fractional year of
Benefit Service shall be rounded up to the next full year of Benefit Service.

     “Board” means Sterling’s Board of Directors.

 

 

     “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as
amended. Reference in this Plan to COBRA shall be deemed to include any amendments or
successor provisions to COBRA and any regulations thereunder.

     “Code” means the Internal Revenue Code of 1986, as amended. Reference in this
Plan to any section of the Code shall be deemed to include any amendments or successor
provisions to such section and any regulations under such section.

     “Committee” means Sterling’s Employee Benefits Plans Committee.

     “Company” means Sterling and the Subsidiaries.

     “Defined Salary Grade Level” means the salary grade levels set from time to time
by the Committee for purposes of determining those Participants who have a minimum Applicable
Multiplier pursuant to Section 2.02; provided, however, that, unless the Board or the
Compensation Committee of the Board approves otherwise, the Committee may only select salary
grade levels that are comprised of positions having duties and responsibilities substantially
similar to (or greater than) those held by employees who had salary grade levels of E6 or
higher or T6 or higher during 2009.

     “Disability” means, with respect to any Participant, a physical or mental
condition of such Participant that results in such Participant becoming eligible for long term
disability benefits under the Company’s long term disability Benefit Plan.

     “Effective Date” means March 1, 2010.

     “Existing Plan” has the meaning specified in the Preliminary Statements of this
Plan.

     “Good Reason” means, with respect to any Participant, any of the following
actions or failures to act, but in each case only if it occurs while such Participant is
employed by the Company, and then only if it is not consented to by such Participant in
writing:

	 	(i)	 	a material reduction by the Company in such Participant’s annual base
salary in effect immediately prior to the effective date of such reduction;
	 
	 	(ii)	 	the failure of the Company to continue such Participant’s eligibility
for participation in employee benefit plans, programs, arrangements and practices
providing benefits that are offered generally to its Non-Represented Employees;
provided, however, that the amendment, modification or discontinuance of any such
employee benefit plan, program, arrangement or practice by the Company shall not
constitute “Good Reason” hereunder if such amendment, modification or
discontinuance applies generally to Non-Represented Employees and does not single
out such Participant for disparate treatment; or

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	 	(iii)	 	any change of more than 75 miles (or, in the case of any Participant for
whom the Committee has approved a shorter distance, such shorter distance) in the
location of the principal place of employment of such Participant immediately prior
to the effective date of such change.

For purposes of this definition, any action or failure to act described in clauses (i) through
(iii) above shall cease to be a Good Reason with respect to any Participant on the date which
is 90 days after such Participant acquires actual knowledge of such action or failure to act
unless, prior to such date, such Participant gives a Termination Notice pursuant to Section
2.05. For purposes of this definition, none of the actions described in clauses (i) through
(iii) above shall constitute a Good Reason with respect to any Participant if it is remedied
by the Company within 30 days after receipt of notice thereof given by such Participant.

          “Misconduct” means, with respect to any Participant:

	 	(i)	 	the commission by such Participant of acts of dishonesty or gross
misconduct which are demonstrably injurious to the Company (monetarily or
otherwise) in any material respect;
	 
	 	(ii)	 	the failure of such Participant to observe and comply with the
Company’s published policies relating to alcohol and drugs, harassment or
compliance with applicable laws;
	 
	 	(iii)	 	the failure of such Participant to observe and comply with any other
lawful published policy of the Company, but, in the case of any such failure that is
capable of being remedied, only if such failure shall have continued unremedied for
more than 30 days after written notice thereof is given to such Participant by the
Company;
	 
	 	(iv)	 	the willful failure of such Participant to observe and comply with all
lawful and ethical directions and instructions of the Board, any person to whom such
Participant reports or any person who has greater authority than such Participant
with respect to the relevant directions or instructions;
	 
	 	(v)	 	the refusal or willful failure of such Participant to perform, in any
material respect, his or her duties with the Company, but only if such failure was
not caused by disability or incapacity and shall have continued unremedied for more
than 30 days;
	 
	 	(vi)	 	the conviction of such Participant for a felony offense; or
	 
	 	(vii)	 	any willful conduct on the part of such Participant that prejudices, in
any material respect, the reputation of the Company in the fields of business in
which it is engaged or with the investment community or the public at large, but

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	 	 	 	only if such Participant knew, or should have known, that such conduct could have
such result.

If any Participant is a party to a written employment agreement with the Company, then clause
(iv) above shall not apply to any directions or instructions that are contrary to or
inconsistent with any of the positions, functions, duties or reporting responsibilities of
such Participant as set forth in such written employment agreement or that violate any of such
Participant’s rights, privileges or immunities under such employment agreement. In case of
any dispute regarding whether or not any conduct by a Participant meets any of the standards
set forth in clauses (i) through (vii) above, the burden of proof shall rest with the Company.

     “Non-Represented Employees” means all employees of the Company who are not
represented by a collective bargaining unit.

     “Participants” means all Non-Represented Employees who are based in the United
States; provided, however, that except as the Committee may otherwise provide in writing, any
individual who is not paid through the Company’s payroll system, or who is classified by the
Company for purposes of this Plan as an independent contractor (or some other non-common law
employee category), shall not be a “Participant” under this Plan, notwithstanding such
individual’s subsequent or retroactive (i) payment through the Company’s payroll system or
(ii) classification or reclassification for tax or other purposes.

     “Pension Plan” means the Sterling Chemicals, Inc. Amended and Restated Salaried
Employees’ Pension Plan (effective as of January 1, 2006), as amended, or any successor to
such plan.

     “Plan” means this Fifth Amended and Restated Severance Pay Plan, as amended,
supplemented or modified from time to time in accordance with its terms.

     “Severance Amount” has the meaning specified in Section 2.02(a)(i).

     “Sterling” means Sterling Chemicals, Inc., a Delaware corporation, and any
Successor.

     “Subsidiary” means any corporation, limited partnership, general partnership,
limited liability company or other form of entity a majority of any class of voting stock or
other voting rights of which is owned, directly or indirectly, by Sterling.

     “Successor” means a successor to all or substantially all of the business,
operations or assets of the Company (whether direct or indirect, by purchase, merger,
consolidation or otherwise).

     “Termination Date” means, with respect to any Participant, the termination date
specified in the Termination Notice delivered by such Participant to the Company in

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accordance with Section 2.05 or the actual date of termination of such Participant’s
employment by the Company for any reason other than Misconduct or Disability.

     “Termination Notice” means, with respect to any Participant, a notice from such
Participant to the Company purporting to terminate such Participant’s employment for Good
Reason in accordance with Section 2.05.

          Section 1.02. Interpretation. In this Plan, unless a clear contrary intention
appears, (a) the words “herein,” “hereof” and “hereunder” and other words of similar import refer
to this Plan as a whole and not to any particular Article, Section or other subdivision, (b)
reference to any Article or Section, means such Article or Section hereof and (c) the words
“including” (and with correlative meaning “include”) means including, without limiting the
generality of any description preceding such term. The Article and Section headings herein are for
convenience only and shall not affect the construction hereof.

Article II

Eligibility and Benefits

          Section 2.01. Eligible Employees. This Plan is only for the benefit of Participants,
and no other employees or personnel shall be eligible to participate in this Plan or to receive any
rights or benefits hereunder.

          Section 2.02. Description of Benefits. (a) Subject to Section 2.03, each Participant
shall be entitled to receive the benefits described below if either such Participant terminates or
has terminated his or her employment for Good Reason in accordance with Section 2.05 or the Company
terminates or has terminated such Participant’s employment for any reason other than a termination
for Misconduct or Disability:

     (i) the Company shall pay to such Participant, on the 45th day following such
Participant’s Termination Date, a lump sum cash payment (the “Severance Amount”) in an
amount equal to such Participant’s Base Salary times such Participant’s Applicable Multiplier;
provided, however, that (A) the right of such Participant to receive such Severance Amount,
and the obligation of the Company to pay such Severance Amount, is expressly conditioned upon
such Participant having executed and delivered to the Company the release referred to in
Section 4.05 and any revocation period for such release having expired prior to the applicable
payment date and (B) if the applicable payment date is not a business day, the Severance
Amount (if required to be made hereunder) shall be paid on the next succeeding business day;
and

     (ii) for a period of six months following such Participant’s Termination Date, the COBRA
premium required to be paid by such Participant for coverage under the Company’s medical and
dental insurance plans shall not exceed the regular premiums required to be paid by active
employees for similar coverage under such plans; provided, however, that the benefits provided
under this clause (ii) (A) shall only be available to such Participant if such Participant (or
his or her qualified beneficiaries) makes a timely

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COBRA election on or after such Participant’s Termination Date to continue coverage under such
medical and dental insurance plans and timely pays the regular employee premium required by
such plans and (B) shall not be available to any Participant that elects coverage under the
Company’s retiree medical plan on or after such Participant’s Termination Date.

Notwithstanding anything to the contrary contained in this Plan, to the extent required by Section
409A of the Code, (x) the reimbursement of any expenses under this Section will be made on or
before the last day of the calendar year immediately following the calendar year in which the
expense is incurred, (y) the amount of medical claims eligible for reimbursement or to be provided
as an in-kind benefit under this Plan during a calendar year may not affect the medical claims
eligible for reimbursement or to be provided as an in-kind benefit in any other calendar year and
(z) the right to reimbursement or in-kind benefits under this Plan shall not be subject to
liquidation or exchange for another benefit. For purposes of this Plan, “Base Salary”
means, with respect to any Participant, such Participant’s annual base salary immediately prior to
the earlier of (A) the date on which an event occurs that results in such Participant terminating
his or her employment for Good Reason and (B) the actual date of such Participant’s termination by
the Company for any reason other than Misconduct or Disability, and “Applicable Multiplier”
means, with respect to any Participant, such Participant’s years of Benefit Service as of the
earlier of (x) the date on which an event occurs that results in such Participant terminating his
or her employment for Good Reason and (y) the actual date of such Participant’s termination by the
Company for any reason other than Misconduct or Disability times a fraction having a numerator of
two and a denominator of 52; provided, however, that (A) no Participant’s Applicable Multiplier
shall exceed 0.5 and (B) each Participant having a salary grade classification at or above the
Defined Salary Grade Level shall have an Applicable Multiplier of 0.5.

          (b) Notwithstanding anything to the contrary contained in this Plan, the benefits made
available under this Plan to Participants expressly exclude outplacement services and financial
counseling.

          (c) Participation in this Plan is voluntary. The Company may require that each eligible
employee execute a participation agreement as a condition to becoming a Participant hereunder. By
agreeing to participate in this Plan, or by accepting any benefits under this Plan, a Participant
unconditionally agrees for all purposes under this Plan to be bound by all of the terms and
conditions of this Plan, including the provisions of Article III hereof.

          Section 2.03. Additional Provisions Relating to Benefits under Sections 2.02. (a)
Notwithstanding anything to the contrary contained in this Plan, the Company’s obligation to
continue the benefits described in Section 2.02(a)(ii) for any Participant shall cease if and when
such Participant ceases to be eligible to continue group health plan coverage under COBRA.

          (b) Notwithstanding anything to the contrary contained in this Plan, the amount of the
Severance Amount payable to any Participant under this Plan shall be reduced, dollar for dollar, by
the aggregate amount of all separation, severance or termination payments paid or payable to such
Participant under (i) any Benefit Plan (other than this Plan and the Pension Plan), including the
Company’s Fifth Amended and Restated Key Employee Protection Plan, as

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amended (as the same may hereafter be amended or modified in accordance with its terms or any
successor to such plan), (ii) any agreement between such Participant and the Company or (iii) any
applicable law, statute, rule, regulation, order or decree (or other pronouncement having the
effect of law) of any nation or governmental authority, including the Worker Adjustment and
Retraining Notification Act.

          Section 2.04. Cost of Plan; Plan Unfunded; Participant’s Rights Unsecured. The entire
cost of this Plan shall be borne by the Company, and no contributions shall be required of the
Participants. The Company shall not be required to establish any special or separate fund or make
any other segregation of funds or assets to assure the payment of any benefit hereunder. The right
of any Participant to receive the benefits provided for herein shall be an unsecured claim against
the general assets of the Company.

          Section 2.05. Termination Notices from Participants. For purposes of this Plan, in
order for any Participant to terminate his or her employment for Good Reason, such Participant must
give a written notice of termination to the Company, which notice shall be in writing and signed by
such Participant, shall be dated the date it is given to the Company, shall specify the termination
date, shall state that the termination is for a Good Reason and shall set forth in reasonable
detail the facts and circumstances claimed to provide a basis for such Good Reason.

          Section 2.06. Compliance With Section 409A of the Code. This Plan is intended to
comply with Section 409A of the Code and any ambiguous provisions shall be construed in a manner
that is compliant with or exempt from the application of Section 409A of the Code. If a provision
of this Plan would result in the imposition of earlier or additional taxes under Section 409A of
the Code, such provision shall be reformed to avoid the imposition of such taxes. Notwithstanding
anything to the contrary contained in this Plan, no Participant shall have any right to determine a
date of payment of any amount under this Plan. For purposes of Section 409A of the Code, each
payment or amount due under this Plan shall be considered a separate payment. For purposes of this
Plan, “Termination of Employment” shall mean Participant’s “separation from service” as
defined in Section 1.409A-1(h) of the Final Treasury Regulations promulgated under Section 409A of
the Code, including the default presumptions thereof. If (a) a Participant is a “specified
employee” (as such term is defined in Section 409A of the Code) and (b) any payment due under this
Plan is subject to Section 409A of the Code and is required to be delayed under Section 409A of the
Code, that payment shall be paid on the earliest date that complies with the requirements of
Section 409A of the Code. For purposes of determining the identity of specified employees, the
Board may establish procedures as it deems appropriate in accordance with Section 409A of the Code.

Article III

Claims Procedure and Dispute Resolution

          Section 3.01. Claims for Benefits. Any claim relating to benefits under this Plan
shall be submitted in writing to the Committee. Within 90 days after a claim has been submitted,
the Committee will mail or deliver a written notice to the claimant indicating either (a) that such
claim has either been granted or denied or (b) that the Committee needs additional time or

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information to make a determination whether such claim should be granted or denied. If the
Committee determines that such claimant is not entitled to receive all or part of the benefits
claimed, such notice shall include (i) the Committee’s determination and the reasons therefor, with
appropriate references to pertinent Plan provisions, and (ii) the procedures for appeal and review
of its determination and an explanation of how a claimant may perfect his or her claim. If the
Committee indicates in such notice that it needs additional time or information in order to make a
determination, such notice shall include an explanation of why such additional time or information
is necessary and an estimated date for a determination by the Committee, which shall, in any event,
be on or before the 180th day after the date the claim was originally submitted. If the
claimant does not receive such notice within such 90-day period (or does not receive a notice of
the Committee’s decision within 180 days after the claim was originally submitted if a notice was
received by such claimant within such 90-day period indicating that the Committee needed additional
time or information), the claimant’s claim shall be deemed denied.

          Section 3.02. Administrative Appeal and Review. (a) If a claim for benefits is denied
or deemed denied, the Participant (or the Participant’s representative) has the right to appeal
that denial by filing a written claim with the Committee. Within 60 days after receipt of an
appeal, the Committee will evaluate the claim and provide a written statement to the Participant.
If the appeal is denied, the statement will include the reason for the denial, a specific reference
to the pertinent provisions of the Plan upon which the denial is based, additional information
needed, if any, and an explanation of the review procedures for a denied appeal set forth in
paragraph (b) below).

          (b) An applicant for benefits whose appeal has been denied, in whole or in part, or the duly
authorized representative of such claimant, may, within 60 days after receipt of written notice of
such denial, request to appear before the Committee to review such denied appeal and submit to the
Committee in writing such additional information as the claimant desires. A claimant who submits a
claim for review shall have a reasonable opportunity to submit issues and comments in writing and
to review pertinent documents. The Committee will (i) allow such claimant to make such appearance
before the Committee within 60 days after receipt by the Committee of such request and (ii) render
its final decision and notify the claimant in writing of such decision and, if the claim was
denied, the reasons for the denial and a specific reference to the pertinent provisions of the Plan
upon which the denial is based, within 60 days after the claimant’s appearance before the
Committee; provided, however, that the Committee may extend such 60-day period for up to an
additional 60 days if the Committee determines that additional time is needed to evaluate the
Participant’s claim. If the claimant does not receive notice of such decision within such 60-day
period (or, if applicable, such extended period), the claim for review shall be deemed denied.

          Section 3.03. Negotiation. Subject to Section 3.05, in case a dispute or controversy
shall arise between any Participant (or any person claiming by, through or under any Participant)
and the Company (including the Committee) relating to or arising out of this Plan or a benefit
claim for which a final administrative appeal has been denied (or deemed denied) pursuant to
Section 3.02, either disputant may give written notice to the other disputant (“Dispute
Notice”) that it wishes to resolve such dispute or controversy by negotiations, in which event
the disputants shall attempt in good faith to negotiate a resolution of such dispute or
controversy. If

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the dispute or controversy is not so resolved within 30 days after the effective date of the
Dispute Notice, subject to Section 3.05, either disputant may initiate arbitration of the matter as
provided in Section 3.04. All negotiations pursuant to this Section 3.03 shall be held at the
Company’s principal offices in Houston, Texas (or such other place as the disputants shall mutually
agree) and shall be treated as compromise and settlement negotiations for the purposes of the
federal and state rules of evidence and procedure.

          Section 3.04. Arbitration. Subject to Section 3.05, any dispute or controversy (a)
which arises out of or relates to this Plan or a benefit claim for which a final administrative
appeal has been denied (or deemed denied) pursuant to Section 3.02 and (b) which has not been
resolved by negotiations in accordance with Section 3.03 within 30 days of the effective date of
the Dispute Notice shall, upon the request of either disputant, be finally settled by arbitration
conducted expeditiously in accordance with the labor arbitration rules of the American Arbitration
Association. The arbitrator shall not be empowered to award damages in excess of compensatory
damages and each disputant shall be deemed to have irrevocably waived any damages in excess of
compensatory damages. The arbitrator’s decision shall be final and legally binding on the
disputants and their successors and assigns. The fees and expenses of the arbitrator shall be
borne solely by the prevailing disputant or, in the event there is no clear prevailing disputant,
as the arbitrator deems appropriate. All arbitration conferences and hearings shall be held in
Houston, Texas.

          Section 3.05. Exclusivity, etc. The Committee shall have complete authority to review
all denied claims for benefits under this Plan. In exercising its responsibilities, the Committee
shall have discretionary authority (a) to determine whether and to what extent covered persons are
eligible for benefits and (b) to construe disputed Plan terms. The dispute resolution procedures
set forth in Sections 3.03 and 3.04 shall not apply to any matter which, by the express provisions
of this Plan, is to be finally and conclusively determined by the Committee unless and until the
Committee issues its decision in accordance with Sections 3.01 and 3.02. Any such determination by
the Committee shall be final and conclusive and may not be overturned unless such determination is
found to be arbitrary and capricious or an abuse of discretion. No legal action may be brought
with respect to this Plan except for the purpose of specifically enforcing the provisions of this
Article III or for the purpose of enforcing any arbitration award made pursuant to Section 3.04.

Article IV

Miscellaneous Provisions

          Section 4.01. Cumulative Benefits. Except as provided in Section 2.03(b), the rights
and benefits provided to any Participant under this Plan are cumulative of, and are in addition to,
all of the other rights and benefits provided to such Participant under any Benefit Plan or any
agreement between such Participant and the Company.

          Section 4.02. No Mitigation or Offset. No Participant shall be required to mitigate
the amount of any payment provided for in this Plan by seeking or accepting other employment
following a termination of his or her employment with the Company or otherwise. Except as

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otherwise provided in Section 2.03(a), the amount of any payment provided for in this Plan shall
not be reduced by any compensation or benefit earned by a Participant as the result of employment
by another employer or by retirement benefits.

          Section 4.03. Amendment and Termination. The Board or the Compensation Committee of
the Board shall be entitled to amend or terminate this Plan at any time and for any reason;
provided, however, that no amendment or termination of this Plan shall affect the rights or
benefits of any Participant or the obligations of the Company accrued under this Plan as of the
effective date of such termination or amendment.

          Section 4.04. Administration. (a) The Committee is, as respects the rights and
obligations of all parties with an interest in this Plan, given the powers, rights and duties
specifically stated elsewhere in this Plan and, in addition, is given full power and final
discretionary authority to:

     (i) make determinations with respect to the administration of this Plan, construe and
interpret its provisions, take all other actions deemed necessary or advisable for the proper
administration of this Plan and determine all questions arising under this Plan, including the
power to determine the rights or eligibility of Participants and any other persons, and the
amounts of their benefits under this Plan, and to remedy ambiguities, inconsistencies or
omissions;

     (ii) adopt such rules of procedure and regulations as in its opinion may be necessary for
the proper and efficient administration of this Plan;

     (iii) enforce this Plan in accordance with its terms and in accordance with any rules of
procedure and regulations adopted by the Committee pursuant to clause (ii) above; and

     (iv) employ agents, attorneys, accountants or other persons (who also may be employed by
the Company), and allocate, delegate or reallocate to them such powers, rights and duties as
the Committee may consider necessary or advisable to properly carry out the administration of
this Plan; provided, however, that such allocation or delegation and the acceptance thereof by
such agents, attorneys, accountants or other persons are in writing.

          (b) Subject to applicable law, any determination, construction or interpretation of the
provisions of this Plan, and any decision on any matter within the discretion of the Committee,
that is made by the Committee in good faith shall be binding on all persons. In case of any claim
that the Committee (or any member thereof) did not act in good faith, the burden of proof shall
rest with the person or entity claiming the absence of good faith.

          (c) The members of the Committee shall receive no additional compensation for their services
relating to this Plan. Any expenses properly incurred by the Committee incident to this Plan,
including the cost of any bond required by applicable law, shall be paid by the Company.

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          (d) The Company shall indemnify and hold harmless each member of the Committee against any and
all expenses and liabilities arising out of his or her administrative functions or fiduciary
responsibilities, including any expenses and liabilities that are caused by or result from an act
or omission of such member acting in good faith in the performance of such functions or
responsibilities. Expenses against which such member shall be indemnified hereunder shall include,
without limitation, the amounts of any settlement or judgment, costs, counsel fees and related
charges reasonably incurred in connection with a claim asserted or a proceeding brought or
settlement thereof.

          Section 4.05. Release of Claims. As a condition to receipt of the benefits under this
Plan, a Participant will be required to sign an agreement, to be prepared by the Company, in which
he or she unconditionally and irrevocably releases the Company and its successors, assigns,
divisions, subsidiaries, representatives, agents, officers, directors, stockholders and employees
from any claims, demands and causes of action relating to or arising out of the termination of his
or her employment with the Company, including any statutory claims under the Age Discrimination in
Employment Act of 1967, as amended, the Older Worker Benefit Protection Act, as amended, the
Americans with Disabilities Act of 1990, as amended, Title VII of the Civil Rights Acts of 1964, as
amended, the Civil Rights Act of 1991, as amended, and any other federal, state, or local law,
statute or ordinance affecting such Participant’s employment with or separation from the Company,
but excluding, however, any claims, demands and causes of action pertaining to (a) any benefits
that are to be provided after the date of such agreement pursuant to the terms of this Plan, (b)
such Participant’s rights, if any, under the Company’s Fifth Amended and Restated Key Employee
Protection Plan, as amended (as the same may hereafter be amended or modified in accordance with
its terms or any successor to such plan), or (c) such Participant’s rights, if any, under any
employment agreement between such Participant and the Company.

          Section 4.06. Assignability. The Company shall have the right to assign this Plan and
to delegate its duties and obligations hereunder; provided, however, that no such assignment shall
relieve or discharge the Company of or from any of its obligations under this Plan. Unless
otherwise approved by the Committee, no Participant shall transfer or assign any of his or her
rights under this Plan except by will or the laws of descent and distribution. Except as otherwise
provided by law, no benefit, right or interest of any Participant under this Plan shall be subject
to pledge, encumbrance, charge, seizure, attachment or legal, equitable or other process, or be
liable for, or subject to, debts, liabilities or other obligations.

          Section 4.07. Consolidations, Mergers, Etc. Sterling will require any person, firm or
entity which becomes its Successor to expressly assume and agree to perform this Plan in writing,
in the same manner and to the same extent that Sterling would be required to perform hereunder if
no such succession had taken place.

          Section 4.08. Benefit and Burden. This Plan shall be binding upon and inure to the
benefit of the Company and its successors and assigns. This Plan and all rights of each
Participant shall inure to the benefit of and be enforceable by such Participant and his or her
personal or legal representatives, executors, administrators, heirs and permitted assigns. If any
Participant should die while any amounts are due and payable to such Participant hereunder, all

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such amounts, unless otherwise provided herein, shall be paid in accordance with the terms of this
Plan to such Participant’s devisees, legatees or other designees or, if there be no such devisees,
legatees or other designees, to such Participant’s estate.

          Section 4.09. Notices. All notices and other communications provided for in this Plan
shall be in writing and shall be sent, delivered or mailed, addressed (a) if to the Company, at
Sterling’s principal office address or such other address as Sterling may have designated by
written notice to all Participants for purposes hereof, directed to the attention of the General
Counsel, and (b) if to any Participant, at his or her residence address on the records of the
Company or to such other address as he or she may have designated to the Company in writing for
purposes hereof. Each such notice or other communication shall be deemed to have been duly given
or mailed by United States registered mail, return receipt requested, postage prepaid, except that
any change of notice address shall be effective only upon receipt.

          Section 4.10. Withholdings. The Company shall have the right to deduct from any
payment hereunder all taxes (federal, state or other) and other payments which it is required to
withhold therefrom.

          Section 4.11. No Employment Rights Conferred. Nothing contained in this Plan shall
(i) confer upon any Participant any right with respect to continuation of employment with the
Company or (ii) subject to the rights and benefits of any Participant hereunder, interfere in any
way with the right of the Company to terminate such Participant’s employment at any time.

          Section 4.12. Governing Law. This Plan shall be governed in accordance with the laws
of the State of Texas (without giving effect to conflicts of laws principles thereof) and
applicable federal law.

          In Witness Whereof, and as conclusive evidence of the adoption of this Plan by the
Board, Sterling has caused this Plan to be duly executed in its name and behalf by its proper
officer thereunto duly authorized as of November 6, 2010.

	 	 	 	 	 
	 	Sterling Chemicals, Inc. 

 	 
	 	By:  	/s/ John V. Genova
 	 
	 	 	Printed Name:  	John V. Genova 	 
	 	 	Title:  	President and Chief Executive Officer	 
	 

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