Chevron TR Department Announcement regarding the heritage Chevron, Texaco or FAMM Employee Share Ownership Plans
Firstly, please be assured that
this Announcement does not relate to the current Share Incentive Plan or the removal
of any such benefit plan currently in place. Rather it relates to the winding up of the above Share Plans that were closed
to new contributions in December 2002 (prior to the commencement of the Share Incentive Plan on the 1st January
2003) and to provide participants of these arrangements with the opportunity to transfer to a new provider going forward.
Therefore, please delete this email if you are not a member of any of the heritage
Chevron, Texaco or FAMM Employee Share Ownership Plans.
The heritage Companies of the
above have agreed that the above Plans will be terminated with immediate effect and a process of winding up the Plans will
follow in the next few weeks.
Plans have been inactive
since the end of 2002 because of the withdrawal of tax relief for approved profit sharing schemes. The
current charging structure for these Plans is now considered uncompetitive and the administration services offered to the
participants out of date.
does this mean for me?
If you hold shares in any of the
above Plans, HBOS Employee Equity Solutions (the current Plan administrators) will be writing to you confirming your options.
You will be given three options:
- To sell your shares
- Transfer your shares to your own name or to a third party of your choice
- To transfer your shares to the Chevron United Kingdom Ltd Nominee Service with
Capita Share Plan Services.
You will have a certain amount
of time in which to make your choice. If you do not indicate an option within the elected time period, the details of your
Plan entitlement will be forwarded to Capita by default, however, you will not be
enrolled into the Chevron United Kingdom Ltd Nominee Service until such time as when the appropriate documentation has been
completed. It is the responsibility of the participant to ensure this is process us undertaken. Please note that due to Financial
Services Authority (FSA) regulations, any shares held in this way cannot be traded or dividends paid until this has been completed.
It is expected that the letters
and documentation relating to this will be issued to your home address during the week commencing 20th October
2008. The deadlines for each option are as follows:
- To sell your shares, you must complete the Sale Form which will be sent to you and return it to HBOS Employee Equity
Solutions by the 28th November 2008.
- To transfer your shares to your own name, please complete the Transfer Form which will be sent to you and return it
to HBOS Employee Equity Solutions by the 17th November 2008.
- To transfer your shares to the Chevron United Kingdom Ltd Nominee Service, please complete the Application Form which
will be sent to you and return it to HBOS Employee Equity Solutions by the 17th November 2008.
do I know if this affects me?
This will affect you if:
- You were employed by one of the above heritage companies, and
- You participated and still hold shares in the Plan
If so, you would have received
quarterly statements from HBOS Employee Equity Solutions which confirms details of the shares that are held for you. In addition,
you should be receiving from them, later this month, a statement outlining your options, as described above.
can I obtain more information?
HBOS Employee Equity Solutions
will provide more information in the Announcements that will be issued in the week commencing the 20th October
2008. Within the communication, it will provide participants with helpline numbers for assistance and website addresses which
will contain further information.
it cost me anything?
The administrative costs of transferring
or selling shares under this arrangement are being met by the Company. The only charge applicable to participants is in respect
of the brokerage fee on sale, which will be deducted from the sale proceeds at a rate of 0.75%.
will the Nominee Service benefit me?
The Nominee Plan allows you the
opportunity to keep all your Chevron shares with one provider going forward (Capita) and under an arrangement that continues
to be managed by the Company. It will also provide participants the option to sell shares on a daily basis (rather than being
limited to the monthly dealing day). In addition, it is anticipated that on-line access to the participants’ holdings
under the Plan will become available via the Share Plan portal in due course. This will enable you to obtain daily fund values.
I wish to sell my shares, will I have to pay tax?
All shares in the Plan matured
on 31st December 2005 and have been available for sale without the deduction of Income Tax or National Insurance
since that date. However, depending on the amount of the proceeds or other individual circumstances, Capital Gains Tax (CGT)
may be payable on the difference between the sale proceeds and the value of the shares when they were originally allocated
to you. The amount chargeable to CGT may be reduced by the annual exemption (£9,600 for the tax year ending on 5 April 2009). For more information on this, we suggest you speak to an independent financial adviser
as neither the Company nor HBOS Employee Equity Solutions is able to provide advice on this matter.
I transfer the shares to the Chevron UK
Share Incentive Plan?
No. This is not allowed under
will happen to my dividend payments on transfer to the Chevron United Kingdom Ltd Nominee Service?
If you complete the documentation
enabling you to transfer your shares in to the Nominee Service, you will continue to receive your dividend payments as they
are currently processed. The only change will be that from 1 January 2009 they will be paid by Capita, rather than HBOS Employee
Equity Solutions. However, if you do not respond to the above Announcement, then Capita will be unable to pay the dividend
until such time as the required paperwork is completed. This is an FSA regulation.
happens if, after joining the Chevron United Kingdom Ltd Nominee Service, I leave Chevron?
If you leave Chevron as a result
of resignation or dismissal, you will be required to remove your holdings from this arrangement. However, if you leave as
a result of retirement, redundancy or through disablement, you will be able, if you wish, to continue to hold your shares
under this service.
the same apply to the shares I hold under the Chevron United Kingdom
Share Incentive Plan?
No, regardless of your reason
for leaving, you will be required to remove your shares held within the Share Incentive Plan and you will not be able to transfer
this stock to the Nominee Service.
happens if I do not make an election or I miss the deadline?
If either of the above applies,
HBOS Employee Equity Solutions will provide Capita Share Plan Services with details of your share holdings. However, you will
not be able to sell your shares or receive dividend payments until such time that the appropriate documentation is completed.
if I want to sell shares before the bulk dealing day in December?
Please note that the standard
monthly sale process for these Plans will still be available in November. If you wish to proceed with any such transaction,
your sale form must be received by HBOS Employee Equity Solutions by the 31st October 2008. For further details
or to obtain a sale form, please click on the following link: