EXXONMOBIL ADDITIONAL PAYMENTS PLAN

Exhibit 10(iii)(c.3)

 

EXXONMOBIL ADDITIONAL PAYMENTS PLAN

 

 

1. Purpose

 

The purpose of this Plan is to provide additional payments from the general assets of Exxon Mobil Corporation (the “Corporation”) to certain persons.  The benefits payable under this Plan consist of two types of pension benefits and a disability benefit.  The first pension benefit is a benefit based upon the person’s final average incentive compensation (“Incentive Pension Benefit”).  The second pension benefit restores certain benefits that are accrued under a pension plan sponsored by a non-U.S. affiliate of the Corporation but which are not paid (“Overseas Makeup Benefit”).  The disability benefit is based on incentive compensation and is paid in the event of a long-term disability (“Disability Benefit”).

 

 

2. Incentive Pension Benefits

 

2.1

Eligibility

A person is eligible to receive Incentive Pension Benefits only if the person satisfies at either of the following requirements:

(A)

the person becomes a retiree within the meaning of the ExxonMobil Common Provisions (“retiree”); or

(B)

in the case of an individual who after terminating employment from the Corporation or any of its affiliates continues employment with Infineum USA Inc. or one of its affiliates (collectively, "Infineum"), becomes a qualified plans retiree within the meaning of the ExxonMobil Common Provisions (“qualified plans retiree”).

 

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2.2

Benefit Formula

(A)

in General

Except as provided in section 2.3 below with respect to former Mobil employees, as defined in the ExxonMobil Common Provisions (“Former Mobil Employees”), the amount of a person’s Incentive Pension Benefit is determined by multiplying 1.6% of the person’s final average incentive compensation by the person’s years of pensionable service as determined under the ExxonMobil Pension Plan (reduced, but not below zero, by the equivalent amount, if any, determined with respect to the person under the ExxonMobil Key Employee Additional Payments Plan), and dividing the amount so derived by twelve.  The amount so derived is expressed in the form of a monthly five-year certain and life annuity for the life of the person commencing at the person’s age 65 (“Normal Retirement Age”).

(B)

Final Average Incentive Compensation

For the purposes of paragraph (A) above, a person's “final average incentive compensation” shall be determined in accordance with this paragraph (B).

(1)

Calculation

(a)

In General

If a person’s eligibility for Incentive Pension Benefits arises from section 2.1(A) above, the person's final average incentive compensation is the average of the person's three highest annual bonus awards (including awards of zero, if any) under the Corporation's Incentive Programs awarded on any of the five most recent annual award dates immediately preceding the person’s termination of employment.

(b)

Corporate Acquisitions

For purposes of applying paragraph (A) above to a person who commences employment with the Corporation or one of

 

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its affiliates in connection with a corporate acquisition, incentive compensation paid by the person’s former employer that is the equivalent of bonus awards payable under the Corporation’s Incentive Program may be taken into account as determined by the management of the Corporation in its sole discretion.  Management shall have the discretion to exclude any and all prior employer compensation for purposes of this paragraph (b).

(2)

Infineum Participants

If a person’s eligibility for Incentive Pension Benefits arises from Section 2.1(B) above, the person's final average incentive compensation is the sum of the three highest annual bonus awards under the Corporation's Incentive Programs, if any, during the five-year period immediately prior to the person's termination of employment from Infineum, divided by three.

(3)

Annual Bonus Award

(a)

Items Used in Calculation

For purposes of this paragraph (B), in determining the amount of a person's annual bonus award, only awards granted under the short-term incentive part of the Incentive Programs as cash and bonus units are considered.

(b)

Item Excluded From Calculation

For purposes of this paragraph (B), in determining the amount of a person's annual bonus award, an award to a person characterized by the granting authority as a special one-time bonus is disregarded, unless deemed specifically includable by the granting authority at the time of grant.

 

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(c)

Calculation of Annual Bonus Award

If an annual bonus award is granted as bonus units, the maximum settlement value obtainable at the time of the grant shall be used in calculating the value of the award.

2.3

Benefit Formula for Former Mobil Employee

(A)

In General

Incentive Pension Benefits for Former Mobil Employees who retire with eligibility for Incentive Pension Benefits under section 2.1 above shall be determined under this section 2.3.  The amount of a person’s Incentive Pension Benefit calculated under this section 2.3 is the smaller of

(1)

the amount of the person’s Incentive Pension Benefit otherwise determined under section 2.2 above based on all of the person’s pensionable service under the ExxonMobil Pension Plan, or

(2)

the amount determined by first calculating the person’s Overall Benefit Objective under paragraph (B) below, then subtracting therefrom the person’s Qualified Benefit Objective calculated under paragraph (C) below and the person’s nonqualified PSSP benefit, if any, determined under paragraph (D) below.  

The resulting amount is expressed as a monthly five-year certain and life annuity for the life of the person commencing at the person’s Normal Retirement Age.

(B)

Overall Benefit Objective

(1)

In General

A person’s Overall Benefit Objective is the greater of

(a)

the sum of the person’s Mobil Benefit described in paragraph (2) below and the person’s Post-Mobil Benefit described in paragraph (3) below, or

(b)

the person’s Overall ExxonMobil Benefit described in paragraph (4) below.

 

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(2)

Mobil Benefit

A person’s Mobil Benefit is the person’s accrued benefit under the Retirement Plan of Mobil Oil Corporation and the Supplemental Pension and Annuity Program of Mobil Oil Corporation up through the date the person becomes a participant in the ExxonMobil Pension Plan, based on service and compensation up through the date the person becomes a participant in the ExxonMobil Pension Plan.

(3)

Post-Mobil Benefit A person’s Post-Mobil Benefit is the person’s accrued benefit described in paragraph (4) below based only on the person’s pensionable service after the person becomes a participant in the ExxonMobil Pension Plan.

(4)

Overall ExxonMobil Benefit

A person’s Overall ExxonMobil Benefit is the sum of

(a)

the person’s accrued benefit under the ExxonMobil Pension Plan (including the Pre-Social Security Pension benefit) without any application of the limits under Code section 415 or 401(a)(17), and

(b)

the amount of the person’s Incentive Pension Benefit otherwise determined under section 2.2 above,

based on all of the person’s pensionable service under the ExxonMobil Pension Plan.

(5)

Rules for Calculation

In calculating a person’s Mobil Benefit, Post-Mobil Benefit and Overall ExxonMobil Benefit, the Plan administrator shall apply rules similar to those contained in section 2.7 of the ExxonMobil Pension Plan for purposes of calculating the person’s frozen Mobil benefit, post-Mobil benefit, and ExxonMobil benefit, respectively.

 

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(C)

Qualified Benefit Objective

A person’s Qualified Benefit Objective is the person’s accrued benefit under the ExxonMobil Pension Plan, including the person’s Pre-Social Security Pension.

(D)

Nonqualified PSSP Benefit

A person’s Nonqualified PSSP Benefit is the excess, if any, of

(1)

the amount of the person’s Pre-Social Security Pension benefit calculated in connection with the person’s Overall Benefit Objective under paragraph (B) above, over

(2)

the amount of the person’s Pre-Social Security Pension benefit or the equivalent thereof under Part 2 of the ExxonMobil Pension Plan calculated in connection with the person’s Qualified Benefit Objective under paragraph (C) above.