Occidental Petroleum 2005 Annual Report Download - page 119

and Bonus are to be earned, or at such other time as the Committee may permit in accordance with the regulations promulgated under
Section 409A of the Code. Deferral Election Forms must be filed in accordance with the instructions set forth in the Deferral Election Forms.
An employee who first becomes an Eligible Employee during a Plan Year may make an initial deferral election under this Plan
within 30 days after the date the employee becomes an Eligible Employee provided that such Eligible Employee has not previously become
eligible to participate in any other account balance plan of the Company as described in Proposed Treasury Regulations Section 1.409A-
1(c)(2) or any successor regulation. Any such election shall apply to Base Salary earned for services performed after the election is filed with
the Committee and to that portion of the Bonus earned during such Plan Year equal to the total amount of the Bonus multiplied by the ratio of
the number of days remaining in the Plan Year after the election is filed with the Committee over the total number of days during the Plan
Year that such Eligible Employee is employed by the Company.
Various deferral options will be made available to Eligible Employees under the Plan, subject to such limitations and
conditions as the Committee may impose from time to time, in its complete and sole discretion. A Deferral Election Form filed for a Plan
Year shall be effective for Base Salary and/or Bonus to be earned during that Plan Year and shall remain in effect for that Plan Year and
subsequent Plan Years, notwithstanding any change in the Participant’s Base Salary or Bonus until changed or terminated in accordance
with the terms of this Section 4.1; provided, however, that such election shall terminate as of the end of the Plan Year in which the Participant
remains an employee but ceases to be an Eligible Employee. Subject to the minimum deferral requirements and maximum deferral
limitations set forth below, a Participant may increase, decrease or terminate his deferral election effective for Base Salary and/or Bonus to be
earned for services to be performed during any Plan Year by filing a new Deferral Election Form with the Committee prior to January 1 of
such Plan Year.
Each Deferral Election Form will designate the DCP Deferral Amounts as a fixed dollar amount or fixed percentage (in
increments of 1%) of Base Salary and/or (i) a fixed dollar amount or a fixed percentage of Bonus or (ii) 100% of any Bonus exceeding a
specified dollar amount, as elected by the Participant. Deferrals of Base Salary will normally be deducted ratably during the Plan Year. In its
sole discretion, the Committee may also permit amounts that an Eligible Employee has previously elected to defer under other plans or
agreements with the Company to be transferred to this Plan and credited to his Deferral Accounts that are maintained hereunder.
(A) Minimum Deferral. For each Plan Year, the minimum amount of Base Salary that a Participant may elect to
defer is $5,000, if expressed as a dollar amount, or 5% of Base Salary, if expressed as a percentage, and the minimum amount of
Bonus that a Participant may elect to defer is any of the following: (I) $5,000, (II) 5% of Bonus, or (III) 100% of that portion of any
Bonus that exceeds a dollar amount specified by the Participant on his Deferral Election Form.
(B) Maximum Deferral. For each Plan Year, the maximum amount of Base Salary that a Participant may elect to
defer is 75% of Base Salary, and the maximum amount of Bonus that a Participant may elect to defer is 100% of Bonus.
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