Occidental Petroleum 2005 Annual Report Download - page 120

(b) Early Payment Benefit Election. With respect to Base Salary and/or Bonus earned after December 31, 2006, on the
Deferral Election Form filed pursuant to Section 4.1(a), an Eligible Employee may irrevocably elect to receive the Base Salary and/or Bonus
deferred pursuant to that election in a lump sum payment or in annual installments over two (2) to five (5) years commencing prior to
Retirement in an Early Payment Year. If a Participant fails to designate the form of distribution for an Early Payment Benefit, the distribution
shall be in the form of a lump sum. The Early Payment Year elected must be a year that begins at least two (2) years after the end of the first
Plan Year to which the election applies. An Early Payment Benefit election filed for the Plan Year beginning January 1, 2007, or for any
subsequent Plan Year, shall be effective for Base Salary and/or Bonus earned and deferred during that Plan Year and each subsequent Plan
Year until terminated in accordance with the terms of this Section 4.1; provided, however that deferrals of Base Salary or Bonus earned
during any Plan Year that ends less than two (2) years prior to the Early Payment Year will not be subject to the Early Payment Benefit
election and shall be paid upon the Participant’s termination of employment as set forth in Section 5.1 or 5.2, as the case may be. A
Participant may terminate an election for an Early Payment Benefit with respect to Base Salary and/or Bonus deferred in any future Plan
Year by filing a new Deferral Election Form with the Committee prior to January 1 of such Plan Year. A Participant may not, however, change
the form of benefit or time of commencement of an Early Payment Benefit with respect to Base Salary and/or Bonus deferred pursuant to a
Deferral Election Form after that Deferral Election is filed pursuant to Section 4.1(a).
A Participant may not at any time have Early Payment Benefits scheduled for more than two Early Payment Years.
However, after an Early Payment Year has occurred and all payments with respect to the corresponding Early Payment Year election have
been completed, a Participant may elect a new Early Payment Year for future deferrals of Base Salary and/or Bonuses.
(c) Deferral of Performance Award Cash Payments . If (i) any portion of a Qualifying Performance Stock Award is payable
in cash and (ii) the delivery of the shares of Occidental Petroleum Corporation’s common stock payable under the award is deferred under
the 2005 DSP (whether such deferral is mandatory under the terms of the Qualifying Performance Stock Award or at the election of the
Participant under the 2005 DSP), then the portion that is payable in the form of cash shall automatically be deferred under this Plan and
credited as a “Performance Award Cash Deferral.”
4.2 DCP Deferral Accounts. The Committee shall establish and maintain a separate DCP Deferral Account for each Participant. A
DCP Deferral Amount shall be credited by the Company to the Participant’s DCP Deferral Account as of the date that the Participant’s Base
Salary and/or Bonus would otherwise have been paid. The amount of a Participant’s Performance Award Cash Deferral shall be credited to a
Participant’s DCP Deferral Account as of the date it becomes certified for payment. Such DCP Deferral Account shall be debited by the
amount of any payments made by the Company to the Participant or the Participant’s Beneficiary therefrom as of the date of payment. The
Committee shall establish an Early Payment Year Subaccount within a Participant’s DCP Deferral Account for each Early Payment Year
elected by that Participant. Any such Early Payment Year Subaccount shall be debited by the amount of any Early Payment Benefit paid by
the Company to the Participant in such Early Payment Year pursuant to Section 5.3 as of the date of payment.
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