Occidental Petroleum 2003 Annual Report Download - page 127

with the Company terminates for any reason other than Retirement, Disability or
death, then Participant shall receive a Termination Benefit in a lump sum as
provided in Section 5.1(a); provided, however, at the sole discretion of the
Committee, no lump sum shall be payable and instead, the Company shall pay to
the Participant an annual amount for a period not to exceed three (3) years,
determined using the Fractional Method.
(d) Disability. If a Participant's employment with the Company
terminates prior to Retirement due to a Disability, then the Participant shall
receive a Disability Benefit in a lump sum within the first 90 days of the
calendar year following the calendar year in which the Participant attains age
55 in an amount equal to the value of the Participant's Deferral Accounts as of
the end of the month preceding payment.
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(e) Effect of Pre-Retirement Termination of Employment on Spousal
Survivor Benefits. Spousal survivor benefits (if any) under Section 5.3 of the
Plan shall not be payable to the spouse of a Participant who terminates
employment prior to Retirement and receives a Termination Benefit or a
Disability Benefit under this Section 5.1.
5.2 Beneficiary Benefits.
(a) If a Participant dies while employed by the Company prior to
becoming eligible for Retirement, the Company shall pay to the Participant's
Beneficiary in a single lump sum an amount equal to the value of the
Participant's DCP Deferral Account and Savings Plan Restoration Account, if any.
If such Participant also has an SEDCP Deferral Account, the Company will also
pay to the Participant's Beneficiary annual payments over the greater of (i) 10
years or (ii) until the Participant would have attained age 65 equal to 25% of
the amount deferred under the SEDCP (excluding any interest on such deferrals),
which payments shall be in full satisfaction of the benefits payable with
respect to the Participant's SEDCP Deferral Account. Notwithstanding the
foregoing, the Participant's Beneficiary shall instead be paid the amount
credited to the Participant's SEDCP Deferral Account as of the end of the month
in which his death occurred plus interest at a rate of 8% per annum, compounded
annually, from the end of such month and credited annually on each anniversary
of the end of such month payable in equal installments (using the Amortization
method) over the period described in the succeeding sentence, if the Committee
determines that the present value of such benefit is greater than the present
value of the benefit described in the preceding sentence. In comparing the
present value of these two alternative benefits, the Committee shall use in each
case a discount factor of 8%.
(b) If a Participant dies while employed by the Company after
becoming eligible for Retirement, the Company will pay to the Participant's
Beneficiary in a single lump sum a Beneficiary Benefit that is an amount equal
to the value of the Participant's Deferral Accounts.
(c) If a Participant dies after the commencement of payment of his
Retirement Benefit, then the remaining installments of the Retirement Benefit
shall be payable to his Beneficiary in the same amounts and at the same times as
such installment would have been paid to the Participant if he were living.
(d) Notwithstanding the foregoing provisions of this Section 5.2, a
Participant may elect at any time that if he dies prior to the commencement of
his Retirement Benefits, then the payment to his Beneficiary shall be made in
any form and calculated in any other manner described in Section 5.1(b). Such an
election shall be on a Distribution Election Form.
(e) The payment or payments to a Beneficiary of a deceased
Participant under this Section 5.2 shall be made or commence during the first 90
days of the calendar year following the year in which the Participant's death
occurred, and the amount of such payment shall be equal to, or determined based