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Conocophillips – ‘10-K’ for 12/31/02 – EX-10.29

On:  Wednesday, 3/26/03, at 2:39pm ET   ·   For:  12/31/02   ·   Accession #:  950129-3-1563   ·   File #:  0-49987

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 3/26/03  Conocophillips                    10-K       12/31/02   29:1.2M                                   Bowne - Houston/FA

Annual Report   —   Form 10-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Conocophillips - Year Ended December 31, 2002        191    993K 
 2: EX-10.1     Trust Agreement                                       21     59K 
 3: EX-10.10    Trust Agreement                                       22     96K 
 4: EX-10.11    1986 Stock Plan of Phillips Petroleum Company         17     51K 
 5: EX-10.12    1990 Stock Plan of Phillips Petroleum Company         22     53K 
 6: EX-10.13    Annual Incentive Compensation Plan of Phillips        22     39K 
 7: EX-10.17    Key Employee Deferred Compensation Plan               30     79K 
 8: EX-10.18    Non-Employee Director Retirement Plan of Phillips     10     23K 
 9: EX-10.19    Omnibus Securities Plan of Phillips Petroleum Co.     22     55K 
10: EX-10.20    Deferred Compensation Plan F/Non-Employee Director    19     45K 
11: EX-10.22    Phillips Petroleum Stock Plan for Non-Employee        17     41K 
12: EX-10.23    Key Employee Suplemental Retirement Plan              12     32K 
13: EX-10.24    Defined Contribution Makeup Plan of Conocophillips    18     38K 
14: EX-10.26    2002 Omnibus Securities Plan of Phillips Petroleum    24     64K 
15: EX-10.27    1998 Stock & Performance Incentive Plan               21     93K 
16: EX-10.28    1998 Key Employee Stock Performance Plan              14     68K 
17: EX-10.29    Deferred Compensation Plan F/Non-Employee Director    18     42K 
18: EX-10.31    Conoco Inc. Salary Deferral & Savings Restoration      3     19K 
19: EX-10.32    Conoco Inc. Directors' Charitable Gift Plan            2     16K 
20: EX-10.33    Phillips Petroleum Co. Director Charitable Plan        2     13K 
21: EX-10.34    Conocophillips Form Indemnity Agmt With Directors      9     52K 
22: EX-10.36.1  Letter Agreement                                       1     11K 
23: EX-10.39.1  Amendment to Rabbi Trust Agreement                     1     11K 
24: EX-12       Computation of Ratio of Earnings to Fixed Charges      2±    13K 
25: EX-21       List of Principal Subsidiaries of Conocophillips      10     49K 
26: EX-23       Consent of Independent Auditors                        1     10K 
27: EX-99.1     Certification of CEO Pursuant to Section 906           1     10K 
28: EX-99.2     Certification of CFO Pursuant to Section 906           1     10K 
29: EX-99.3     Unaudited Pro Forma Combined Stmt of Operations        4     24K 


EX-10.29   —   Deferred Compensation Plan F/Non-Employee Director

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Exhibit 10.29 AMENDED BY CORPORATE APPROVAL FEBRUARY 27, 2003 DEFERRED COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS OF CONOCOPHILLIPS Section 1. Purpose of the Plan The amount of total compensation which is paid to the Non-Employee Director for services rendered as a Non-Employee Director is set by resolution of the Board of Directors and is comprised of a portion paid in cash ("Cash Compensation") and a portion paid in Restricted Stock and/or Restricted Stock Units ("Stock Compensation") of ConocoPhillips common stock $.01 par value ("CP Common Stock"). The "Cash Compensation" shall also include any portion of the compensation that is paid to a Continuing Director (as defined in Section 12) in cash (including, without limitation, any cash compensation payable pursuant to any restricted stock unit) by ConocoPhillips for services as a member of the ConocoPhillips Board (as defined in Section 12), and "Stock Compensation" shall also include any portion of the compensation that is paid to a Continuing Director by ConocoPhillips in ConocoPhillips common stock $.01 par value ("CP Common Stock") for services as a member of the ConocoPhillips Board. "Common Stock" shall mean Phillips Common Stock or CP Common Stock, as the context may require. The purpose of the Deferred Compensation Plan for Non-Employee Directors ("Plan") is to provide a program whereby a member of the Board of Directors of ConocoPhillips ("Company") -1-
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who is not an officer or present employee of the Company or any of its subsidiaries ("Non-Employee Director") may elect to: 1) defer the payment of part or all of the Cash Compensation payable to the Non-Employee Director ("Cash Payment"), 2) receive part or all of the Cash Compensation payable to the Non-Employee Director in shares of Unrestricted Stock under the terms of the 1998 Stock and Performance Incentive Plan of ConocoPhillips ("Unrestricted Stock Award"), 3) receive part or all of the Cash Compensation in shares of Restricted Stock under the terms of the 1998 Stock and Performance Incentive Plan of ConocoPhillips ("Restricted Stock Award"), 4) delay the lapsing of restrictions on Restricted Stock or delay the settlement of Restricted Stock Units issued prior to January 1, 2003 due to the attainment of certain ages under the terms of the Phillips Petroleum Company Stock Plan for Non-Employee Directors ("Restricted Stock Lapsing"), and to delay the lapsing on any Restricted Stock issued after January 1, 2003 under the terms of the 1998 Stock and Performance Incentive Plan of ConocoPhillips, or to delay the settlement of Restricted Stock Units issued after January 1, 2003. 5) defer the value of shares of unrestricted Common Stock which would otherwise be delivered to the Non-Employee Director as a result of restrictions being lapsed on shares of Restricted Stock or when Restricted Stock Units or similar Awards are settled due to the attainment of certain ages or at Retirement under the terms of the Phillips Petroleum Company Stock Plan for Non-Employee Directors and/or the 1998 Stock and Performance Incentive Plan of -2-
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ConocoPhillips or under the terms of the grant of such Awards ("Value of Restricted Stock, Restricted Stock Units or Awards"). Section 2. Elections (a) Cash Payment. For each calendar year, a Non-Employee Director may elect to have payment of part or all of the Non-Employee Director's Cash Compensation deferred. On or before December 20 of each year, the election to defer Cash Compensation that would otherwise be paid in the next calendar year may be made by giving written notice thereof in the manner prescribed by the Company, except that such election may be made by the end of the month in which a Non-Employee Director is first elected to the Board of Directors. The election becomes irrevocable after the date for making such election. (b) Unrestricted Stock Award. For each calendar year, a Non-Employee Director may elect to receive Unrestricted Stock for part or all of the Cash Compensation that would otherwise be paid in the next calendar year. On or before December 20 of each year, such election to receive Unrestricted Stock instead of cash may be made by giving written notice thereof in the manner prescribed by the Company, except that such election may be made by the end of the month in which a Non-Employee Director is first elected to the Board of Directors. Such election to receive Unrestricted Stock becomes irrevocable after the date for making such election. -3-
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(c) Restricted Stock Award. For each calendar year, a Non-Employee Director may elect to receive Restricted Stock for part or all of the Cash Compensation that would otherwise be paid in the next calendar year. On or before December 20 of each year, such election to receive Restricted Stock instead of cash may be made by giving written notice thereof in the manner prescribed by the Company, except that such election may be made by the end of the month in which a Non-Employee Director is first elected to the Board of Directors. Such election to receive Restricted Stock becomes irrevocable after the date for making such election. (d) Restricted Stock Lapsing or Restricted Stock Units Settled. (i) For Restricted Stock and/or Restricted Stock Units issued prior to January 1, 2003, Non-Employee Directors who are or will become 65 years of age prior to the end of that calendar year may elect to delay the lapsing of restrictions on Restricted Stock and that would otherwise be lapsed, and to delay the receipt of shares of Common Stock that would otherwise be delivered in settlement of restricted stock units or similar awards, in either case based on their age under the terms of the Phillips Petroleum Company Stock Plan for Non-Employee Directors until the day the Director retires from the Board of Directors. (ii) For Restricted Stock and/or Restricted Stock Units issued after January 1, 2003, Non-Employee Directors may elect to delay the lapsing of restrictions on Restricted Stock that would otherwise be lapsed in January of the year following the next calendar year based on the terms of any Restricted Stock Awards granted under the 1998 Stock and Performance Incentive Plan of ConocoPhillips, and to delay the receipt of shares of -4-
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Common Stock or the cash value that would otherwise be delivered in settlement of Restricted Stock Units or similar Awards until the day the Director retires from the Board of Directors. (iii) The Non-Employee Director must make the elections specified in Section 2 (d) (i) and (ii) herein by giving written notice thereof in the manner prescribed by the Company on or before December 20 of that year. Such election to delay the lapsing of restrictions on Restricted Stock or the settlement of Restricted Stock Units or Awards becomes irrevocable after the date for making such election Such election shall apply to any Restricted Stock Units granted in exchange for shares of Restricted Stock pursuant to the Exchange offer initiated by the Company on December 17, 2001. (e) Value of Restricted Stock and Restricted Stock Units. (i) Each year Non-Employee Directors who are or will become 65 years of age prior to the end of that calendar year may make an election concerning the deferral of the receipt of the value of all or part of the Common Stock which would otherwise be delivered to the Non-Employee Director as a result of restrictions being lapsed on shares of Restricted Stock or and the settlement of Restricted Stock Units or similar Awards issued prior to January 1, 2003 based on their age under the terms of the Phillips Petroleum Company Stock Plan for Non-Employee Directors. (ii) If the Non-Employee Director has previously elected to delay the lapsing of restrictions on Restricted Stock or the settlement of Restricted Stock Units or similar Awards until the Director retires from the Board of Directors or if restrictions are to lapse on any Restricted Stock or if Restricted Stock Units or similar Awards are to be -5-
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settled at the time the Director retires from the Board of Directors, or if the Non-Employee Director Retires from the Board prior to being given an opportunity to make such election, such Non-Employee Director may make an election concerning the deferral of the receipt of the value of all or part of the Common Stock or the cash payment that would otherwise be delivered to the Non-Employee Director as a result of restrictions being lapsed on shares of Restricted Stock or the settlement of Restricted Stock Units or Awards when the Director retires from the Board of Directors. (iii) The Non-Employee Director must make the election specified in Sections 2 (e) (i) and (ii) herein by giving written notice on or before December 20 of the applicable year, or as soon as practicable prior to the Director's Retirement from the Board if such Director would receive shares of Common Stock or a cash payment as a result of restrictions being lapsed on shares of Restricted Stock or the settlement of Restricted Stock Units or Awards under the terms of the Phillips Petroleum Company Stock Plan for Non-Employee Directors or the 1998 Stock and Performance Incentive Plan of ConocoPhillips or the terms of the Award. Such election to defer the value of Restricted Stock or Restricted Stock Units or Awards becomes irrevocable after the date for making such election. Section 3. Deferred Compensation Accounts (a) Credit for Deferral. The Company will establish and maintain an account for each Non-Employee Director who defers Cash Compensation and/or the Value of Restricted Stock -6-
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or Restricted Stock Units or Awards in which will be credited the amounts deferred. Amounts deferred shall be credited as soon as practicable but not later than 30 days after the date the payment would otherwise have been made. The value of the underlying Restricted Stock or Restricted Stock Units or Awards i) for any Restricted Stock or Restricted Stock Units issued prior to January 1, 2003 shall be the higher of (a) the average of the high and low selling prices of the Common Stock on the date the restrictions lapse or the shares are to be delivered, as applicable, or the last trading day before such date, if such date is not a trading day, or (b) the average of the high three monthly Fair Market Values of the Common Stock during the twelve calendar months preceding the month in which the restrictions lapse or the shares are to be delivered, as applicable and ii) for any Restricted Stock or Restricted Stock Units issued, including all dividends that are reinvested, on or after January 1, 2003 shall be the monthly average Fair Market Value of the calendar month preceding the month in which the restrictions lapse or the cash payment or shares are to be delivered as applicable. The monthly average Fair Market Value of the Common Stock is the average of the daily Fair Market Value of the Common Stock for each trading day of the month. The daily Fair Market Value of the Common Stock shall be deemed equal to the average of the reported highest and lowest sales prices per share of such Common Stock as reported on the composite tape of the New York Stock Exchange transactions. (b) Designation of Investments. The amount in each Non-Employee Director's Deferred Compensation Account shall be deemed to have been invested and reinvested from time to time, in such "eligible securities" as the Non-Employee Director shall designate. Prior to -7-
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or in the absence of a Non-Employee Director's designation, the Company shall designate an "eligible security" in which the Non-Employee Director's Deferred Compensation Account shall be deemed to have been invested until designation instructions are received from the Non-Employee Director. Eligible securities are those securities designated by the Chief Financial Officer of the Company. The Chief Financial Officer of the Company may include as eligible securities, stocks listed on a national securities exchange, and bonds, notes, debentures, corporate or governmental, either listed on a national securities exchange or for which price quotations are published in The Wall Street Journal and shares issued by investment companies commonly known as "mutual funds". The Non-Employee Director's Deferred Compensation Account will be adjusted to reflect the deemed gains, losses and earnings as though the amount deferred was actually invested and reinvested in the eligible securities for the Non-Employee Director's Deferred Compensation Account. Notwithstanding anything to the contrary in this Section 3(b), in the event the Company actually purchases or sells such securities in the quantities and at the times the securities are deemed to be purchased or sold for a Non-Employee Director's Deferred Compensation Account, the Account shall be adjusted accordingly to reflect the price actually paid or received by the Company for such securities after adjustment for all transaction expenses incurred (including without limitation brokerage fees and stock transfer taxes). In the case of any deemed purchase not actually made by the Company, the Deferred -8-
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Compensation Account shall be charged with a dollar amount equal to the quantity and kind of securities deemed to have been purchased multiplied by the fair market value of such security on the date of reference and shall be credited with the quantity and kind of securities so deemed to have been purchased. In the case of any deemed sale not actually made by the Company, the account shall be charged with the quantity and kind of securities deemed to have been sold, and shall be credited with a dollar amount equal to the quantity and kind of securities deemed to have been sold multiplied by the fair market value of such security on the date of reference. As used herein "fair market value" means in the case of a listed security the closing price on the date of reference, or if there were no sales on such date, then the closing price on the nearest preceding day on which there were such sales, and in the case of an unlisted security the mean between the bid and asked prices on the date of reference, or if no such prices are available for such date, then the mean between the bid and asked prices to the nearest preceding day for which such prices are available. The Treasurer may also designate a Fund Manager to provide services which may include recordkeeping, Non-Employee Director accounting, Non-Employee Director communication, payment of installments to the Non-Employee Director, tax reporting and any other services specified by the Company in agreement with the Fund Manager. (c) Payments. A Non-Employee Director's Deferred Compensation Account shall be debited with respect to payments made from the account pursuant to this Plan as of the date such payments are made from the account. The payment shall be made as soon as practicable, -9-
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but no later than 30 days, after the installment payment date. -10-
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If any person to whom a payment is due hereunder is under legal disability as determined in the sole discretion of the Chief Executive Officer, the Company shall have the power to cause the payment due such person to be made to such person's guardian or other legal representative for the person's benefit, and such payment shall constitute a full release and discharge of the Company and any fiduciary of the Plan. (d) Statements. At least one time per year the Company or the Company's designee will furnish each Non-Employee Director a written statement setting forth the current balance in the Non-Employee Director's Deferred Compensation Account, the amounts credited or debited to such account since the last statement and the payment schedule of deferred amounts and deemed gains, losses and earnings accrued thereon as provided by the deferred payment option selected by the Non-Employee Director. Section 4. Deferred Payment Options (a) Payment Options for Cash Compensation and the Value of Restricted Stock or Restricted Stock Units or Awards. A Non-Employee Director, at the time an election to defer Cash Compensation or the Value of Restricted Stock or Restricted Stock Units or Awards is made, shall also specify in writing whether the Cash Compensation or the Value of Restricted Stock or Restricted Stock Units or Awards deferred by such election and any deemed gains, losses and earnings accrued thereon is to be paid in one lump sum or in annual installments of not less than 5 nor more than 10. The lump sum payment will be made or the first installment will begin as soon as practicable after the first day of the -11-
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calendar quarter which is on or after the Non-Employee Director's retirement, or the Director may specify that the lump sum be paid the first day of any calendar quarter following retirement from the Board except that the date must be at least one year from the date the election is made. After a Non-Employee Director first selects a payment option, all subsequent deferrals of Cash Compensation and/or the value of Restricted Stock or Restricted Stock Units or Awards will have the same payment option. (b) Payment Option Revision. The Non-Employee Director may at any time during a period beginning 365 days prior to and ending no later than December 20 prior to the date the Non-Employee Director terminates Board service due to (a) not being nominated for election to the Board; or (b) not being reelected to Board service after being so nominated; or (c) resignation from Board service as a result of the Director's disability or any reason acceptable to a majority of the remaining members of the Board of Directors ("Retires" or "Retirement"), or as soon as practicable prior to Retirement in the manner prescribed by the Company, revise such payment option and select one of the following payment options in place of such payment option: (i) a lump sum, (ii) annual installments of not less than 5 nor more than 10, (iii) semi-annual installments of not less than 10 nor more than 20, or (iv) quarterly installments of not less than 20 nor more than 40, -12-
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with the lump sum to be paid or first installment to commence, as soon as practicable following any date specified by the Non-Employee Director so long as such date is the first day of a calendar quarter, is on or after the Non-Employee Director's Retirement Date, is at least one year from the date the payment option was revised and is no later than five (5) years after the Non-Employee Director's Retirement Date. (c) Installment Amount. The amount of each installment shall be determined by dividing the balance in the Non-Employee Director's Deferred Compensation Account as of the date the installment is to be paid, by the number of installments remaining to be paid (inclusive of the current installment) or such other installment option that may be offered. Section 5. Death of Non-Employee Director Upon the death of a Non-Employee Director, the Non-Employee Director's beneficiary or beneficiaries designated in accordance with Section 6 of this Plan, or, in the absence of an effective beneficiary designation, the surviving spouse, or the Estate of the deceased Non-Employee Director, in that order of priority, shall receive the beneficiary's or beneficiaries' portion of the payments in accordance with the deferred payment schedule selected by the Non-Employee Director, whether the Non-Employee Director's death occurred before or after such payments have commenced; provided, however, such payments may be made in a different manner if the beneficiary or beneficiaries entitled to receive such payments, due to an unanticipated emergency caused by an event beyond the control of the beneficiary or -13-
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beneficiaries that results in financial hardship to the beneficiary or beneficiaries, so requests and the Vice President Human Resources gives written consent to the method of payment requested. Section 6. Designation of Beneficiary Each Non-Employee Director who defers under this Plan shall designate a beneficiary or beneficiaries to receive the entire balance of the Non-Employee Director's Deferred Compensation Account by giving signed written notice of such designation in the manner prescribed by the Company. The Non-Employee Director may from time to time change or cancel any previous beneficiary designation in the same manner. The last written beneficiary designation received by the Company shall be controlling over any prior designation and over any testamentary or other disposition. After receipt by the Company of such written designation, it shall take effect as of the date on which it was signed by the Non-Employee Director, whether the Non-Employee Director is living at the time of such receipt, but without prejudice to the Company on account of any payment made under this Plan before receipt of such designation. Section 7. Nonassignability The right of a Non-Employee Director or beneficiary or other person who becomes entitled to receive payments under this Plan shall not be pledged, assigned or subject to garnishment, attachment or any other legal process by the creditors of or other claimants against the Non-Employee Director, beneficiary, or other such person. -14-
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Section 8. Administration, Interpretation and Amendment The Plan shall be administered by the Chief Executive Officer of the Company or his designee. The decision of the Chief Executive Officer with respect to any questions arising as to the interpretation of this Plan, including the severability of any and all of the provisions thereof, shall be final, conclusive and binding. The Company reserves the right to amend this Plan from time to time or to terminate the Plan entirely, provided, however, that no amendment may affect the balance in a Non-Employee Director's account on the effective date of the amendment. In the event of termination of the Plan, the Chief Executive Officer in the Chief Executive Officer's sole discretion, may elect to pay in one lump sum as soon as practicable after termination of the Plan, the balance then in the Non-Employee Director's account. Section 9. Nonsegregation Amounts deferred pursuant to this Plan and the crediting of amounts to a Non-Employee Director's Deferred Compensation Account shall represent the Company's unfunded and unsecured promise to pay compensation in the future. With respect to said amounts, the relationship of the Company and a Non-Employee Director shall be that of debtor and general unsecured creditor. While the Company may make investments for the purpose of measuring and meeting its obligations under this Plan such investments shall remain the sole property of the Company subject to claims of its creditors generally, and shall not be deemed to form or be included in any part of the Deferred Compensation Account. -15-
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Section 10. Funding All amounts payable under the Plan are unfunded and unsecured benefits and shall be paid solely from the general assets of the Company and any rights accruing to the Non-Employee Director or the beneficiary under this Plan shall be those of an unsecured general creditor; provided, however, that the Company may establish a grantor trust to pay part or all of its Plan payment obligations so long as the Plan remains unfunded for federal tax purposes. Section 11. Miscellaneous (a) Except as otherwise provided herein, the Plan shall be binding upon the Company, its successors and assigns, including but not limited to any corporation which may acquire all or substantially all of the Company's assets and business or with or into which the Company may be consolidated or merged. (b) This Plan shall be construed, regulated, and administered in accordance with the laws of the State of Delaware except to the extent that said laws have been preempted by the laws of the United States. Section 12. Continuing Directors and Noncontinuing Directors Notwithstanding anything contained in this Plan to the contrary: -16-
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(a) Elections made by a Non-Employee Director who is a member of the board of directors (the "ConocoPhillips Board") of ConocoPhillips (a "Continuing Director") immediately following the closing (the "Closing") of the transactions (the "Merger") contemplated by the Agreement and Plan of Merger dated as of November 18, 2001 by and among Phillips Petroleum Company, CorvettePorsche Corp., Porsche Merger Corp., Corvette Merger Corp., and Conoco Inc. (the "Merger Agreement") shall be effective for the following compensation received from ConocoPhillips with respect to service as a Continuing Director for the portion of calendar year 2002 that follows the Closing, without any action on the part of such Continuing Director, Phillips Petroleum Company or ConocoPhillips: (i) the deferral of the receipt of Cash Compensation, (ii) the receipt of Unrestricted Stock in lieu of Cash Compensation or Stock Compensation, (iii) the receipt of Restricted Stock in lieu of Cash Compensation or Stock Compensation, (iv) the deferral of the lapsing of restrictions on Restricted Stock that would otherwise lapse, (v) the deferral of receipt of the value of all or part of the Common Stock which would otherwise be delivered to the Continuing Director as a result of restrictions being lapsed; and (vi) the deferral of receipt of a lump sum payment from the Non-employee Director Retirement Plan; and (b) ConocoPhillips shall be the co-sponsor of this Plan and shall be the obligor hereunder with respect to compensation of Continuing Directors for services on the ConocoPhillips Board that is deferred hereunder; (c) A Continuing Director shall not be deemed to have "retired" or otherwise terminated service as a Non-Employee Director for any purpose of this Plan solely as a result of such director's ceasing to be a director of Phillips Petroleum Company in connection with the -17-
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Merger, and no distributions of the Continuing Directors' account balances under the Plan shall be made solely as a result of the consummation of the transactions contemplated by the Merger Agreement. For any Continuing Director, service as a member of the ConocoPhillips Board shall be treated as service as a Non-Employee Director, and "retirement" or any other termination of service from the ConocoPhillips Board shall be deemed to be a retirement or termination of service (as applicable) as a Non-Employee Director for all purposes of this Plan. (d) Each individual who ceases to be a Non-Employee Director in connection with the Merger who is not a Continuing Director shall be deemed to have retired as of the Closing Date for purposes of this Plan (including, without limitation, for purposes of Section 4). Section 13. Effective Date of the Plan This Plan is amended and restated effective as of October 22, 2002. -18-

Dates Referenced Herein   and   Documents Incorporated by Reference

Referenced-On Page
This ‘10-K’ Filing    Date First  Last      Other Filings
Filed on:3/26/03
2/27/031
1/1/0327
For Period End:12/31/0211-K
10/22/0218
12/17/015
11/18/0117
 List all Filings 


4 Subsequent Filings that Reference this Filing

  As Of               Filer                 Filing    For·On·As Docs:Size             Issuer                      Filing Agent

 2/15/24  ConocoPhillips                    10-K       12/31/23  164:25M
 2/16/23  ConocoPhillips                    10-K       12/31/22  158:28M
 2/17/22  ConocoPhillips                    10-K       12/31/21  171:23M                                    Certent, Inc./FA
 2/16/21  ConocoPhillips                    10-K       12/31/20  173:24M                                    Certent, Inc./FA
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