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EXHIBIT 10(e)
May 20, 1986
Mr. Ronald W. Haddock
8306 Acupulco Cove Court
Humble, TX 77338
Dear Ron:
In consideration of your decision to join American Petrofina,
Incorporated (API), API agrees to provide you, upon retirement
from the active service of API at age 55 or later, with
supplemental retirement benefits as determined in the following
manner:
Your primary retirement benefit will equal 1.6% of your Final
Average Earnings (includes basic salary and paid bonuses) that you
receive from API over the 36 consecutive months out of the most
recent 120 months immediately prior to retirement during which
such earnings are the highest. Final Average Earnings shall then
be multiplied by the number of completed years and months of
service from June 11, 1963 to the date of your retirement from
API, and then reduced by the lesser of (i) 1-1/2% of your Old Age
Social Security benefit for such completed years and months of
service or (ii) 50% of your Old Age Social Security benefit. If
your retirement is prior to age 60, the retirement benefit amount
will be reduced 5/12% for each month that your retirement precedes
age 60. This retirement benefit amount will be payable as a 5
year and life annuity.
Your retirement benefit, as determined in the preceding paragraph,
shall be reduced by the following three amounts:
The first amount will equal your vested deferred monthly 5 year
certain and life annuity from the Exxon Corporation plan payable
from your retirement date.
The second amount will equal your monthly 5 year certain and life
annuity from the Pension Plan for employees of American Petrofina,
Incorporated and Certain Subsidiaries payable from your retirement
date.
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Mr. Ronald W. Haddock
May 20, 1986
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The third amount will equal your monthly 5 year certain and life
annuity from the Excess Benefit Plan of American Petrofina,
Incorporated and Certain Subsidiaries payable from your retirement
date.
Such supplemental retirement benefits may be converted into any of
the optional forms of benefit then permitted under the Pension
Plan for employees of API, using the actuarial equivalence factor
applicable under that plan.
As we discussed, such supplemental retirement benefits will not be
funded in advance but will be considered as general obligations of
API.
If you find the foregoing to be satisfactory to you, please so
indicate in the spaces provided below. Return one executed copy
to me and retain one copy for your file.
Sincerely,
/s/
Paul D. Meek
PDM/dld
ACCEPTED AND AGREED this 29 day of May , 1986.
____________/s/______________
Ronald W. Haddock
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FINA, Inc.
INTEROFFICE CORRESPONDENCE
THIS MEMORANDUM CONSTITUTES THE
AMENDMENT TO THE LETTER OF 5/20/86
Date: December 16, 1993 Subject: Tax Avoidance by Vesting --
Ron W. Haddock's SERP
From: Bill H. Bonnett
To: Paul D. Meek
In order to keep the Company from paying $15,000 in FICA-Medicare taxes and an
equal match by the employee, I recommend a December 1, 1993 vesting of the
Supplemental Executive Retirement Plan (SERP) benefits outlined in the
employment contract you signed for Ron Haddock. This is a result of the Tax
Reform Act (OBRA '93) provision effective January 1, 1994, which requires a
FICA-Medicare tax of 1.45% on past accruals for SERP's at the point of vesting.
This tax can be avoided if the benefit is vested before January 1, 1994.
When Ron was hired he received an individual employment contract which provided
a supplemental benefit to "keep him whole" with the Exxon equivalent benefit.
In the agreement (see attached) the benefit will vest when age 55 is reached
(7/95). There is no hidden cost to accelerate the vesting of the benefits as
long as Ron remains with FINA until at least age 55.
Your approval of this amendment to the employment contract is respectfully
requested. The attached E-mail from Mike Godfrey confirms approval by our
outside directors and Ron has also received approval from Francois Cornelis.
/s/
Bill H. Bonnett
BHB/dld
Attachment
APPROVED:
/s/
Paul D. Meek