Document:

Exhibit 10.20

 

CELANESE CORPORATION

2004 STOCK INCENTIVE PLAN

 

1.                                       Purpose
of the Plan

 

The purpose of the Plan (as defined below) is
to aid the Company (as defined below) and its Affiliates (as defined below) in
recruiting and retaining key employees, directors or consultants of outstanding
ability and to motivate such employees, directors or consultants to exert their
best efforts on behalf of the Company and its Affiliates by providing
incentives through the granting of Awards (as defined below).  The Company expects that it will benefit from
the added interest which such key employees, directors or consultants will have
in the welfare of the Company as a result of their proprietary interest in the
Company’s success.

 

2.                                       Definitions

 

The following capitalized terms used in the
Plan have the respective meanings set forth in this Section:

 

(a) Affiliate:  With respect to any Person, any other Person,
directly or indirectly, controlling, controlled by or under common control with
such Person or any other Person designated by the Committee in which any Person
has an interest.

 

(b) Award:  Any Option, Stock Appreciation Right, or
Other Stock-Based Award granted pursuant to the Plan.

 

(c) Award Agreement:  Any written agreement, contract, or other
instrument or document evidencing any Award, which may, but need not, be
executed or acknowledged by a Participant.

 

(d) Blackstone:  Blackstone LR Associates (Cayman) IV Ltd.,
Blackstone Management Associates (Cayman) IV L.P., Blackstone Capital Partners
(Cayman) IV L.P., Blackstone Capital Partners (Cayman) IV-A L.P., Blackstone
Family Investment Partnership (Cayman) IV-A L.P. and Blackstone Chemical
Coinvest Partners (Cayman) L.P.

 

(e) Board:  The Board of Directors of the Company.

 

(f) Change in Control:  (i) the sale or disposition, in one or a
series of related transactions, of all or substantially all of the assets of
the Company to any “person” or “group” (as such terms are defined in Sections
13(d)(3) and 14(d)(2) of the Exchange Act) other than Blackstone or its affiliates
or (ii) any person or group, other than Blackstone or its affiliates, is or
becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act), directly or indirectly, of more than 51% of the total voting
power of the voting stock of the Company, including by way of merger,
consolidation or otherwise.

 

(g) Code:  The Internal Revenue Code of 1986, as
amended, or any successor thereto.

 

(h) Committee:  A committee of the Board designated by the
Board.

 

 

(i) Company:  Celanese Corporation, a Delaware corporation.

 

(j) Effective Date:  The date the Board adopts the Plan.

 

(k) Employment: (i) a Participant’s
employment if the Participant is an employee of the Company or any of its
Affiliates, (ii) a Participant’s services as a consultant, if the Participant
is a consultant to the Company or any of its Affiliates and (iii) a
Participant’s services as an non-employee director, if the Participant is a
non-employee member of the Board or the board of directors of an Affiliate; provided
however that unless otherwise determined by the Committee, a change in a
Participant’s status from employee to non-employee (other than a director of
the Company or an Affiliate) shall constitute a termination of employment
hereunder.

 

(l) Exchange Act:  The Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated thereunder, or any successor
statute thereto.

 

(m) Fair Market Value:  On a given date, (a) if there is a public
market for the Shares on such date, the average of the high and low closing bid
prices of the Shares on such stock exchange on which the Shares are principally
trading on the date in question, or, if there were no sales on such date, on
the closest preceding date on which there were sales of Shares or (ii) if there
is no public market for the Shares on such date, the fair market value of the
Shares as determined in good faith by the Board.

 

(n) ISO:  An Option that is also an incentive stock
option granted pursuant to Section 6(d) of the Plan.

 

(o) Option:  A stock option granted pursuant to Section 6
of the Plan.

 

(p) Option Price:  The purchase price per Share of an Option, as
determined pursuant to Section 6(a) of the Plan.

 

(q) Other Stock-Based Award:  Any award granted under Section 8 of the
Plan.

 

(r) Participant:  An employee, director or consultant of the
Company or its Affiliates who is selected by the Committee to participate in
the Plan.

 

(s) Person:  Any individual, firm, corporation,
partnership, limited liability company, trust, incorporated or unincorporated
association, joint venture, joint stock company, governmental body or other
entity of any kind.

 

(t) Plan:  Celanese Corporation 2004 Stock Incentive
Plan.

 

(u) Shares:  Shares of Series A common stock of the
Company.

 

(v) Stock Appreciation Right:  Any right granted under Section 7 of the
Plan.

 

(w) Subsidiary:  A subsidiary corporation, as defined in
Section 424(f) of the Code.

 

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3.                                       Shares
Subject to the Plan

 

The total number of Shares which may be
issued under the Plan is 16,500,000, subject to adjustment pursuant to Section
9 of the Plan.  The Shares may consist,
in whole or in part, of unissued Shares or treasury Shares.  The issuance of Shares or the payment of cash
upon the exercise of an Award shall reduce the total number of Shares available
under the Plan, as applicable.  Shares
which are subject to Awards (or portion thereof) that terminate or lapse may be
granted again under the Plan.

 

4.                                       Administration

 

(a) The Plan shall be administered by the
Committee, which may delegate its duties and powers in whole or in part as it
determines; provided, however, that the Board may, in its sole
discretion, take any action designated to the Committee under this Plan as it
may deem necessary.

 

(b) The Committee shall have the full power
and authority to make, and establish the terms and conditions of, any Award to
any person eligible to be a Participant, consistent with the provisions of the
Plan and to waive any such terms and conditions at any time (including, without
limitation, accelerating or waiving any vesting conditions).  Awards may, in the discretion of the
Committee, be made under the Plan in assumption of, or in substitution for,
outstanding awards previously granted by the Company or its Affiliates or a
company acquired by the Company or with which the Company combines.  The number of Shares underlying such
substitute awards shall be counted against the aggregate number of Shares
available for Awards under the Plan.

 

(c) The Committee is authorized to interpret
the Plan, to establish, amend and rescind any rules and regulations relating to
the Plan, and to make any other determinations that it deems necessary or
desirable for the administration of the Plan, and may delegate such authority,
as it deems appropriate.  The Committee
may correct any defect or supply any omission or reconcile any inconsistency in
the Plan in the manner and to the extent the Committee deems necessary or
desirable.  Any decision of the Committee
in the interpretation and administration of the Plan, as described herein,
shall lie within its sole and absolute discretion and shall be final,
conclusive and binding on all parties concerned (including, but not limited to,
Participants and their beneficiaries or successors).

 

(d) The Committee shall require payment of
any amount it may determine to be necessary to withhold for federal, state,
local, or other taxes as a result of the exercise, grant or vesting of an
Award.  Unless the Committee specifies
otherwise, the Participant may elect to pay a portion or all of such
withholding taxes by having Shares withheld by the Company with a Fair Market
Value equal to the minimum statutory withholding rate from any Shares that
would have otherwise been received by the Participant in connection with (i)
the exercise of an Option or Stock Appreciation Right or (ii) the delivery of
Shares pursuant to an Other Stock-Based Award.

 

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5.                                       Limitations

 

No Awards may be granted under the Plan after
the tenth anniversary of the Effective Date, but Awards theretofore granted may
extend beyond that date.

 

6.                                       Options

 

Options granted under the Plan shall be, as
determined by the Committee, non-qualified stock options or ISOs for federal income
tax purposes, as evidenced by the related Award Agreements, and shall be
subject to the following terms and conditions as well as the terms and
conditions set forth in the applicable Award Agreement:

 

(a) Option Price.  The Option Price shall be determined by the
Committee, but, with respect to ISOs, shall not be less than 100% of the Fair
Market Value of the Shares on the date an Option is granted.

 

(b) Exercisability.  Options granted under the Plan shall be
exercisable at such time and upon such terms and conditions as may be
determined by the Committee, but in no event shall an Option be exercisable
more than ten years after the date it is granted.

 

(c) Exercise of Options.  Except as otherwise provided in the Plan or
in an Award Agreement, an Option may be exercised for all, or from time to time
any part, of the Shares for which it is then exercisable.  For purposes of this Section 6, the exercise
date of an Option shall be the date a notice of exercise is received by the
Company, together with payment (or to the extent permitted by applicable law,
provision for payment) of the full purchase price in accordance with this
Section 6(c).  The purchase price for the
Shares as to which an Option is exercised shall be paid to the Company as
designated by the Committee, pursuant to one or more of the following methods:
(i) in cash, or its equivalent (e.g., by check), (ii) in Shares having a Fair
Market Value equal to the aggregate Option Price for the Shares being purchased
to the Company and satisfying such other requirements as may be imposed by the
Committee; provided that such Shares have been held by the Participant
for no less than six months (or such other period as established from time to
time by the Committee or generally accepted accounting principles); (iii)
partly in cash and partly in such Shares; (iv) if there is a public market for
the Shares at such time, subject to such rules as may be established by the
Committee, through delivery of irrevocable instructions to a broker to sell the
Shares otherwise deliverable upon the exercise of the Option and to deliver
promptly to the Company an amount equal to the aggregate Option Price for the
shares being purchased or (v) such other method as approved by the Committee.  No Participant shall have any rights to
dividends or other rights of a stockholder with respect to Shares subject to an
Option until the Participant has given written notice of exercise of the
Option, paid in full for such Shares and, if applicable, has satisfied any
other conditions imposed by the Committee pursuant to the Plan.

 

(d) ISOs.  The Committee may grant Options under the
Plan that are intended to be ISOs.  Such
ISOs shall comply with the requirements of Section 422 of the Code.  No ISO may be granted to any Participant who
at the time of such grant is not an employee of the Company or of any of its
Subsidiaries.  In addition, no ISO may be
granted to any Participant who at the time of such grant owns more than 10% of
the total combined voting power of all 

 

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classes
of stock of the Company or of any of its Subsidiaries, unless (i) the
Option Price for such ISO is at least 110% of the Fair Market Value of a Share
on the date the ISO is granted and (ii) the date on which such ISO terminates
is a date not later than the day preceding the fifth anniversary of the date on
which the ISO is granted.  Any
Participant who disposes of Shares acquired upon the exercise of an ISO either
(I) within two years after the date of grant of such ISO or
(II) within one year after the transfer of such Shares to the Participant,
shall notify the Company of such disposition and of the amount realized upon
such disposition.  All Options granted
under the Plan are intended to be non-qualified stock options, unless the
applicable Award Agreement expressly states that the Option is intended to be
an ISO.  If an Option is intended to be
an ISO, and if for any reason such Option (or portion thereof) shall not
qualify as an ISO, then, to the extent of such nonqualification, such Option
(or portion thereof) shall be regarded as a non-qualified stock option granted
under the Plan; provided that such Option (or portion thereof) otherwise
complies with the Plan’s requirements relating to non-qualified stock options.  In no event shall any member of the
Committee, the Company or any of its Affiliates (or their respective employees,
officers or directors) have any liability to any Participant (or any other
Person) due to the failure of an Option to qualify for any reason as an ISO.

 

(e) Attestation.  Wherever in this Plan or any Award Agreement
a Participant is permitted to pay the Option Price or taxes relating to the
exercise of an Option by delivering Shares, the Participant may, subject to
procedures satisfactory to the Committee, satisfy such delivery requirement by
presenting proof of beneficial ownership of such Shares, in which case the
Company shall treat the Option as exercised without further payment and shall
withhold such number of Shares from the Shares acquired by the exercise of the
Option.

 

7.                                       Stock
Appreciation Rights

 

(a) Grants.  The Committee may grant (i) a Stock
Appreciation Right independent of an Option or (ii) a Stock Appreciation
Right in connection with an Option, or a portion thereof.  A Stock Appreciation Right granted pursuant
to clause (ii) of the preceding sentence (A) may be granted at the
time the related Option is granted or at any time prior to the exercise or
cancellation of the related Option, (B) shall cover the same number of
Shares covered by an Option (or such lesser number of Shares as the Committee
may determine) and (C) shall be subject to the same terms and conditions
as such Option except for such additional limitations as are contemplated by
this Section 7 (or such additional limitations as may be included in an Award
agreement).

 

(b) Terms.  The exercise price per Share of a Stock
Appreciation Right shall be an amount determined by the Committee but in no
event shall such amount be less than the Fair Market Value of a Share on the
date the Stock Appreciation Right is granted; provided, however, that
notwithstanding the foregoing in the case of a Stock Appreciation Right granted
in conjunction with an Option, or a portion thereof, the exercise price may not
be less than the Option Price of the related Option.  Each Stock Appreciation Right granted
independent of an Option shall entitle a Participant upon exercise to an amount
equal to (i) the excess of (A) the Fair Market Value on the exercise
date of one Share over (B) the exercise price per Share, times
(ii) the number of Shares covered by the Stock Appreciation Right.  Each Stock Appreciation Right granted in
conjunction with an Option, or a portion thereof, shall entitle a Participant
to surrender to the Company the unexercised Option, or any portion thereof, and
to receive from the 

 

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Company
in exchange therefor an amount equal to (i) the excess of (A) the
Fair Market Value on the exercise date of one Share over (B) the Option
Price per Share, times (ii) the number of Shares covered by the Option, or
portion thereof, which is surrendered. 
Payment shall be made in Shares or in cash, or partly in Shares and
partly in cash (any such Shares valued at such Fair Market Value), all as shall
be determined by the Committee.  Stock
Appreciation Rights may be exercised from time to time upon actual receipt by
the Company of written notice of exercise stating the number of Shares with
respect to which the Stock Appreciation Right is being exercised.  The date a notice of exercise is received by
the Company shall be the exercise date. 
No fractional Shares will be issued in payment for Stock Appreciation
Rights, but instead cash will be paid for a fraction or, if the Committee
should so determine, the number of Shares will be rounded downward to the next
whole Share.

 

(c) Limitations.  The Committee may impose, in its discretion,
such conditions upon the exercisability or transferability of Stock
Appreciation Rights as it may deem fit.

 

8.                                       Other
Stock-Based Awards.

 

The Committee, in its sole discretion, may
grant the right to purchase Shares, Awards of Shares, Awards of restricted
Shares, Awards of phantom stock units and other Awards that are valued in whole
or in part by reference to, or are otherwise based on the Fair Market Value of,
Shares (“Other Stock-Based Awards”). 
Such Other Stock-Based Awards shall be in such form, and dependent on
such conditions, as the Committee shall determine, including, without
limitation, the right to receive one or more Shares (or the equivalent cash
value of such Shares) upon the completion of a specified period of service, the
occurrence of an event and/or the attainment of performance objectives.  Other Stock-Based Awards may be granted alone
or in addition to any other Awards granted under the Plan.  Subject to the provisions of the Plan, the
Committee shall determine: (a) the number of Shares to be awarded under (or
otherwise related to) such Other Stock-Based Awards; (b) whether such Other
Stock-Based Awards shall be settled in cash, Shares or a combination of cash
and Shares; and (c) all other terms and conditions of such Other Stock-Based
Awards (including, without limitation, the vesting provisions thereof and
provisions ensuring that all Shares so awarded and issued shall be fully paid
and non-assessable).

 

9.                                       Adjustments
Upon Certain Events

 

Notwithstanding any other provisions in the
Plan to the contrary, the following provisions shall apply to all Awards
granted under the Plan:

 

(a) Generally.  In the event of any change in the outstanding
Shares after the Effective Date by reason of any Share dividend or split,
reorganization, recapitalization, merger, consolidation, spin-off, combination
or transaction or exchange of Shares or other corporate exchange, or any
distribution to shareholders of Shares other than regular cash dividends or any
transaction similar to the foregoing or the issuance of equity (or rights to
acquire equity) for consideration less than Fair Market Value (other than
equity-based compensation or the conversion of preferred shares of the Company
to Shares), the Committee in its sole discretion and without liability to any
person may make such substitution or adjustment, if any, as it deems to be
equitable, as to (i) the number or kind of Shares or other securities
issued or reserved for

 

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issuance
pursuant to the Plan or pursuant to outstanding Awards, (ii) the Option
Price or exercise price of any Stock Appreciation Right and/or (iii) any
other affected terms of such Awards.

 

(b) Change in Control.  In the event of a Change of Control after the
Effective Date, the Committee may, in its sole discretion, provide for the (i)
termination of an Award upon the consummation of the Change of Control, but
only if such Award has vested and been paid out or the Participant has been
permitted to exercise the Option in full for a period of not less than 15 days
prior to the Change of Control, (ii) acceleration of all or any portion of an
Award, (iii) payment of an amount (in cash or, in the discretion of the
Committee, in the form of consideration paid to shareholders of the Company in
connection with such Change of Control) in exchange for the cancellation of an
Award, which, in the case of Options and Stock Appreciation Rights, may equal
the excess, if any, of the Fair Market Value of the Shares subject to such
Options or Stock Appreciation Rights over the aggregate Option Price or grant
price of such Option or Stock Appreciation Rights, and/or (iv) issuance of
substitute Awards that will substantially preserve the otherwise applicable
terms of any affected Awards previously granted hereunder.

 

10.                                 No
Right to Employment or Awards

 

The granting of an Award under the Plan shall
impose no obligation on the Company or any of its Affiliates to continue the
Employment of a Participant and shall not lessen or affect the Company’s or its
Affiliates’ rights to terminate the Employment of such Participant.  No Participant or other Person shall have any
claim to be granted any Award, and there is no obligation for uniformity of
treatment of Participants or holders or beneficiaries of Awards.  The terms and conditions of Awards and the
Committee’s determinations and interpretations with respect thereto need not be
the same with respect to each Participant (whether or not such Participants are
similarly situated).

 

11.                                 Successors
and Assigns

 

The Plan shall be binding on all successors
and assigns of the Company and a Participant, including without limitation, the
estate of such Participant and the executor, administrator or trustee of such
estate, or any receiver or trustee in bankruptcy or representative of the
Participant’s creditors.

 

12.                                 Nontransferability
of Awards

 

Unless otherwise determined by the Committee,
an Award shall not be transferable or assignable by the Participant other than
by will or by the laws of descent and distribution.  An Award exercisable after the death of a
Participant may be exercised by the legatees, personal representatives or distributees
of the Participant.

 

13.                                 Awards
Subject to the Plan.

 

In the event of a conflict between any term
or provision contained in the Plan and a term or provision in any Award
Agreement, the applicable terms and provisions of the Plan will govern and prevail.

 

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14.                                 Severability.

 

If any provision of the Plan or any Award is,
becomes or is deemed to be invalid, illegal, or unenforceable in any
jurisdiction or as to any Person or Award, or would disqualify the Plan or any
Award under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee,
materially altering the intent of the Plan or the Award, such provision shall
be stricken as to such jurisdiction, Person or Award and the remainder of the
Plan and any such Award shall remain in full force and effect.

 

15.                                 Amendments
or Termination

 

(a) Amendments or Termination of the Plan.  The Committee may amend, alter or discontinue
the Plan, but no amendment, alteration or discontinuation shall be made,
without the written consent of a Participant, if such action would diminish any
of the rights of the Participant under any Award theretofore granted to such
Participant under the Plan; provided, however, that the Committee
may amend the Plan in such manner as it deems necessary to permit the granting
of Awards meeting the requirements of the Code or other applicable laws.

 

(b) Amendments to Awards.  The Committee may waive any conditions or
rights under, amend any terms of, or alter, suspend, discontinue, cancel or
terminate, any Award theretofore granted, prospectively or retroactively; provided
that no waiver, amendment, alteration, suspension, discontinuation,
cancellation or termination shall impair the rights of any Participant or any
holder or beneficiary of any Award theretofore granted without the consent of
the affected Participant, holder or beneficiary.

 

16.                                 Other
Benefit Plans

 

All Awards shall constitute a special
incentive payment to the Participant and shall not be taken into account in
computing the amount of salary or compensation of the Participant for the
purpose of determining any benefits under any pension, retirement,
profit-sharing, bonus, life insurance or other benefit plan of the Company or
under any agreement between the Company and the Participant, unless such plan
or agreement specifically provides otherwise.

 

17.                                 Choice
of Law

 

The Plan shall be governed by and construed
in accordance with the laws of the State of Delaware without regard to
conflicts of laws.

 

18.                                 Effectiveness
of the Plan

 

The Plan shall be effective as of the
Effective Date.

 

8Exhibit 10.21

 

 

FORM OF
CELANESE CORPORATION

DEFERRED COMPENSATION PLAN

 

SECTION I

 

PURPOSE

 

The purpose of this Celanese Corporation
Deferred Compensation Plan (the “Plan”) is to create a deferred
compensation account for those employees of outstanding ability and to motivate
such employees to exert their best efforts on behalf of the Company and its
Affiliates.

 

SECTION II

 

DEFINITIONS

 

2.1           Defined Terms.  Whenever used in the Plan, the following
terms shall have the following meanings:

 

“Account” means an account created by
the Company pursuant to Section 3.1 of this Plan.

 

“Act” means The Securities Exchange
Act of 1934, as amended, or any successor thereto.

 

“Affiliate” means, with respect to any
Person, any other Person, directly or indirectly, controlling, controlled by or
under common control with such Person or any other Person designated by the
Committee in which any Person has an interest.

 

“Blackstone” means Blackstone LR
Associates (Cayman) IV Ltd., Blackstone Management Associates (Cayman) IV
L.P., Blackstone Capital Partners (Cayman) IV L.P., Blackstone Capital
Partners (Cayman) IV-A L.P., Blackstone Family Investment Partnership
(Cayman) IV-A L.P. and Blackstone Chemical Coinvest Partners (Cayman) L.P.

 

“Blackstone Valuation” means the
valuation of the Company performed by Blackstone for 2004 that is set forth in
the audited financial statements provided to Blackstone’s limited partners.

 

“Beneficiary” means one or more
persons or entities (including a trust or estate) designated by a Participant,
at any time or from time to time, to receive any payment under the Plan at or
after such Participant’s death.

 

“Board” means the Board of Directors
of the Company.

 

“Cause” means “Cause” as defined in an
employment agreement or change in control agreement between the Company or its
subsidiaries and the Participant or, if not defined therein or if there is no
such agreement, “Cause” means (i) the Participant’s willful failure to
perform Participant’s duties hereunder (other than as a result of total or partial
incapacity due to physical or mental illness) for a period of 30 days
following written notice by the Company to

 

 

the Participant of such failure,
(B) commission of (x) a felony (other than traffic-related) under the
laws of the United States or any state thereof or any similar criminal act in a
jurisdiction outside the United States or (y) a crime involving moral
turpitude, (C) Participant’s willful malfeasance or willful misconduct
which is demonstrably injurious to the Company, (D) any act of fraud by
the Participant or (E) the Participant’s breach of the provisions of any
confidentiality, noncompetition or nonsolicitation to which the Participant is
subject.

 

“Change of Control’’ means
(i) the sale or disposition, in one or a series of related transactions,
of all or substantially all of the assets of the Company to any “person” or “group”
(as such terms are defined in Sections 13(d)(3) and 14(d)(2) of the Act)
other than Blackstone or its affiliates or (ii) any person or group, other
than Blackstone or its affiliates, is or becomes the “beneficial owner” (as
defined in Rules 13d-3 and 13d-5 under the Act), directly or indirectly,
of more than 51% of the total voting power of the voting stock of the Company,
including by way of merger, consolidation or otherwise.

 

“Code” means the Internal Revenue Code
of 1986, as amended from time to time.

 

“Committee” means the Compensation
Committee of the Board, or such other committee designated by the Board.

 

“Company” means Celanese Corporation.

 

“Deferral Agreement” means an
agreement between an employee of the Company or one of its Affiliates and the
Company that sets forth the amount and terms of the employee’s deferred
compensation.

 

“Disability” means the Participant
becomes physically or mentally incapacitated and is therefore unable for a
period of six consecutive months or for an aggregate of nine months in any
24 consecutive month period to perform Participant’s duties.

 

“Effective Date” means the date the
Board adopts the Plan.

 

“Exit Event” means a sale or other
disposition by Blackstone of at least ninety percent (90%) of its equity
interest in the Company, provided that, in connection with such sale or
other disposition, Blackstone receives a cash internal rate of return of at
least twenty percent (25%) on such equity interest.

 

“Fair Market Value” means, on a given
date, (a) if there is a public market for the Shares on such date, the
average of the high and low closing bid prices of the Shares on such stock
exchange on which the Shares are principally trading on the date in question,
or, if there were no sales on such date, on the closest preceding date on which
there were sales of Shares or (ii) if there is no public market for the
Shares on such date, the fair market value of the Shares as determined in good
faith by the Board.

 

“Good Reason” means “Good Reason” as
defined in an employment agreement or change in control agreement between the
Company or its subsidiaries and the Participant or, if not defined therein or
if there is no such agreement, “Good Reason” means (i) a substantial

 

2

 

diminution in Participant’s position or
duties; adverse change in reporting lines, or assignment of duties materially
inconsistent with his position which results in a substantial diminution in
Participant’s position or duties, (ii) any reduction in Participant’s base
salary or annual bonus opportunity or (iii) failure of the Company to pay
compensation or benefits when due under the agreement, in each case which is
not cured within 30 days following the Company’s receipt of written notice
from Participant describing the event constituting Good Reason.

 

“Initial Value” means, with respect to
the applicable Account, the Tier I Time Value, the Tier II Time
Value, the Tier I CFC Value, the Tier I EBITDA Value, the
Tier II CFC Value or the Tier II EBITDA Value.

 

“IPO” means an initial registered
public offering of the Shares.

 

“IPO Price” means the initial offering
price per Share in the IPO.

 

“Participant” means each employee who
has entered into a Deferral Agreement.

 

“Performance Account” means each of
the Tier I CFC Performance Account, the Tier I EBITDA Performance
Account, the Tier II CFC Performance Account and the Tier II EBITDA
Performance Account.

 

Performance Target
means each of the Tier I CFC Target, the Tier I EBITDA Target, the
Tier II CFC Target and the Tier II EBITDA Target.

 

“Person” means a “person”, as such
term is used for purposes of Section 13(d) or 14(d) of the Act.

 

“Plan” means the Celanese Corporation
Deferred Compensation Plan.

 

“Share” means as share of
Series A common stock of the Company.

 

“Tier I CFC Target” means the
Tier I CFC Target set forth in the Deferral Agreement.

 

“Tier I CFC Value” means the
Participant’s Tier I CFC Performance Deferral Amount as defined in the
Deferral Agreement.

 

“Tier I EBITDA Target” means the
Tier I EBITDA Target set forth in the Deferral Agreement.

 

“Tier I EBITDA Value” means the
Participant’s Tier I EBITDA Performance Deferral Amount as defined in the
Deferral Agreement.

 

“Tier I Time Value” means the
Participant’s Time Deferral Amount as defined in the Deferral Agreement.

 

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“Tier II CFC Target” means the
Tier II CFC Target set forth in the Deferral Agreement.

 

“Tier II CFC Value” means the
Participant’s Tier II CFC Performance Deferral Amount as defined in the
Deferral Agreement.

 

“Tier II EBITDA Target” means the
Tier II EBITDA Target set forth in the Deferral Agreement.

 

“Tier II EBITDA Value” means the
Participant’s Tier II EBITDA Performance Deferral Amount as defined in the
Deferral Agreement.

 

“Tier II Time Value” means the
Participant’s Time Deferral Amount as defined in the Deferral Agreement.

 

SECTION III

 

DEFERRED COMPENSATION ACCOUNTS

 

3.1           Accounts.  The Company shall maintain the following six
separate book entry accounts (each an “Account”) for each Participant;
(i) the Tier I Time Account with an initial value equal to the
Tier I Time Value, (ii) the Tier II Time Account with an initial
value equal to the Tier II Time Value, (iii) the Tier I EBITDA
Performance Account with an initial value equal to the Tier I EBITDA
Value, (iv) the Tier I CFC Performance Account with an initial value
equal to the Tier I CFC Value, (v) the Tier II EBITDA
Performance Account with an initial value equal to the Tier II EBITDA
Value and (vi) Tier II CFC Performance Account with an initial value
equal to the Tier II CFC Value.  The
balance of each Participant’s Account(s) shall be reduced by any distributions
made to such Participant or his or her Beneficiary pursuant to this Plan.

 

3.2           Trusts.  Nothing contained herein shall be deemed to
create a trust of any kind or any fiduciary relationship; provided, however,
that the Company or any of its subsidiaries reserves the right to establish one
or more trusts to provide alternate sources of benefit payments under this
Plan.  To the extent that any person
acquires a right to receive payments from the Company under the Plan, such
right shall be no greater than the right of any unsecured general creditor of
the Company or its subsidiaries.

 

SECTION IV

 

VESTING

 

4.1           Tier I Time Account.  The Tier I Time Account shall be 100%
vested as of the Effective Date.

 

4.2           Tier II Time Account.  (a)  General.  Subject to the Participant’s continued
employment with the Company or any Affiliate, the Tier II Time Account of
each Participant shall vest as follows: 
(i) 23.5% on the later of (x) December 31, 2005 and
(y) an Exit Event;

 

4

 

(ii) 23.5% on the later of (x) December 31, 2006 and
(y) an Exit Event; (iii) 23.5% on the later of
(x) December 31, 2007 and (y) an Exit Event; (iv) 23.5% on
the later of (x) December 31, 2008 and (y) an Exit Event; and
(v) 6% on the later of (x) March 31, 2009 and (y) an Exit
Event (each of December 31, 2005, December 31, 2006,
December 31, 2007, December 31, 2008 and March 31, 2009, a “Time
Condition Date”).

 

(b)           Change of Control.  Notwithstanding the foregoing, subject to the
Participant’s continued employment, following a Change of Control, the
Tier II Time Account shall become immediately vested upon an Exit Event; provided,
that if such Change of Control is an Exit Event, the Tier II Time Account
shall become immediately vested upon such Change of Control.

 

4.3           Performance Account.  (a)  General.  Subject to the Participant’s continued
employment with the Company or any Affiliate and the achievement of the
applicable Performance Target for the year ending on the applicable Performance
Condition Date (as defined below), each Performance Account shall vest as
follows:  (i) 35.3% on the later of
(x) December 31, 2005 and (y) an Exit Event; (ii) 35.3% on
the later of (x) December 31, 2006 and (y) an Exit Event;
(iii) 17.6% on the later of (x) December 31, 2007 and (y) an
Exit Event; and (iv) 11.8% on the later of (x) December 31, 2008
and (y) an Exit Event (each of December 31, 2005, December 31,
2006, December 31, 2007 and December 31, 2008, a “Performance
Condition Date”).

 

(b)           Change of Control.  Notwithstanding the foregoing, upon a Change
of Control, with respect to each Performance Account, if either (x) the
cumulative Performance Target applicable to such Performance Account was
achieved through the Change of Control (the Performance Target for the year of
the Change of Control appropriately adjusted by the Committee to reflect the
period from the beginning of the year of the Change of Control through the
Change of Control) or (x) Blackstone receives in connection with such
Change of Control an amount equal to at least $54.45 per Share, then, the
Performance Target for such Performance Account shall be deemed to be achieved
with respect to the Performance Condition Date of the year of the Change of
Control and with respect to each Performance Condition Date that occurred prior
to the year of the Change of Control.

 

4.4           Termination of Employment.  (a)  General.  Other than as described in
Section 4.4(b) or in a Deferral Agreement, if the Participant’s employment
with the Company and its Affiliates terminates for any reason, an Account, to
the extent not then vested, shall expire and be immediately canceled by the
Company without consideration.

 

(b)           Good Termination.  Notwithstanding Section 4.2(a) and
4.3(a), in the event that the Participant is terminated (i) by the Company
without Cause, (ii) by the Participant with Good Reason or (iii) due
to the Participant’s death or Disability:

 

(i)            Tier II
Time Account.  With respect to the
Tier II Time Account, the Participant’s termination of employment shall be
deemed to have occurred on the Time Condition Date of the year of such
termination; and

 

5

 

(ii)           Performance
Account.  With respect to each
Performance Account, if the applicable Performance Target for the year of
termination is achieved, the Participant’s termination of employment shall be
deemed to have occurred on the Performance Condition Date of the year of such
termination.

 

SECTION V

 

PAYMENT OF DEFERRED COMPENSATION

 

5.1           Payment Date.  Except as set forth in a Deferral Agreement,
the vested portion of the value of a Participant’s Account shall be paid to the
Participant as soon as practicable following the date such portion of the
Account vests (each such date, a “Distribution Date”).  Notwithstanding the foregoing, the
Tier I Time Account shall be paid to the Participant as soon as
practicable following the Effective Date.

 

5.2           Account Value.  The value of each Account (other than the
Tier I Time Account) on a Distribution Date shall be determined as
follows:

 

(a)           If, on a Distribution Date, the price per Share equals or
exceeds the price per Share determined pursuant to the Blackstone
Valuation  (or if an IPO of the Shares
has occurred within 12 months following the Effective Date, equals or
exceeds the greater of the price per Share determined pursuant to the
Blackstone Valuation and the IPO Price) (such price per Share, the “Initial
Share Price”), the Account shall equal the Initial Value of such Account minus
all distributions from such Account.

 

(b)           If, on a Distribution Date, the price per Share is less than
the Initial Share Price, the value of each Account shall be determined as set
forth in the Participant’s Deferral Agreement.

 

5.3           Beneficiary.  Each Participant shall have the right to
designate a Beneficiary.  Any designated
Beneficiary shall receive payments in the same manner as the Participant as if
he or she had lived.  In case of a
failure of designation or the death of a designated Beneficiary without a
designated successor, the balance of the amounts contained in the Participant’s
Account shall be paid, in accordance with the Plan and the Deferral Agreement,
to the Participant’s estate.  No
designation of Beneficiary or change in Beneficiary shall be valid unless it is
in writing signed by the Participant and filed with the Secretary of the
Company (or his or her designated agent) and satisfies such other conditions
prescribed by the Committee.

 

SECTION VI

 

ADMINISTRATION; MISCELLANEOUS

 

6.1           Administration.  The Committee shall administer the Plan; provided,
however, that the Committee may delegate its duties and powers in whole
or in part as it determines.  The
Committee has full discretionary authority to construe and interpret the terms
and provisions of the Plan; to adopt, alter and repeal administrative rules,
guidelines and

 

6

 

practices governing the Plan. 
The Committee may take any action, correct any defect, supply any
omission or reconcile any inconsistency in the Plan, in the manner and to the
extent it shall deem necessary to carry the Plan into effect or to carry out
the Company’s purposes in adopting the Plan. 
Any decision, interpretation or other action made by the Committee
arising out of or in connection with the Plan, shall be final, binding and
conclusive on the Company and all Participants and Beneficiaries and their
respective heirs, executors, successors and assigns.  The Committee’s determinations hereunder need
not be uniform, and may be made selectively among Participants, whether or not
they are similarly situated.

 

6.2           Employment.  This Plan does not constitute an employment
contract between the Company and a Participant. 
Nothing in this Plan shall be construed to give a Participant the right
to be retained in the service of the Company, nor interfere with the right of
the Company to terminate a Participant at any time and nothing in this Plan
shall require uniformity of treatment with respect to Participants and/or their
Beneficiaries.

 

6.3           Governing Law.  This Plan shall be governed by, and construed
in accordance with the laws of the State of Delaware, without regard to the
conflicts of laws provisions thereof.

 

6.4           Tax Withholding.  The Company may withhold from distributions
made from the Plan any taxes required to be withheld under federal, state, or
local law.

 

6.5           Assignment, etc..  Benefits payable under this Plan may not be
anticipated, assigned (either at law or equity), alienated, pledged,
encumbered, or subjected to attachment, garnishment, levy, execution, or other
legal process, and any attempt to effect such distribution shall be void.

 

6.6           Amendments, Termnation.  The Plan may be amended, suspended or
terminated in whole or in part from time to time by the Board, except that no
amendment, suspension, or termination shall diminish the rights, or adversely
affect the benefits, provided to the Participants hereunder.

 

6.7           Plan Scope.  The Plan is an unfunded plan intended to
provide deferred compensation to a select group of management and highly
compensated employees of the Company and its subsidiaries.

 

7

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