Savings and Profit Sharing Plan for U.S. Employees [Amended and Restated] (2002)Full Document 

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                              AMENDED AND RESTATED
               NOVA CHEMICALS INC. SAVINGS AND PROFIT SHARING PLAN
                               FOR U.S. EMPLOYEES

                         EFFECTIVE AS OF JANUARY 1, 1997


                                TABLE OF CONTENTS



ARTICLE                                                                 Page No.
                                                                        --------
                                                                     
I.       DEFINITIONS........................................................ 1
         1.1      Actual Net Income......................................... 1
         1.2      Adjustment Factor......................................... 1
         1.3      Affiliated Company........................................ 1
         1.4      Annual Additions.......................................... 1
         1.5      Annual NOVA Equity Account................................ 1
         1.6      Average Contribution Percentage........................... 2
         1.7      Average Deferral Percentage............................... 2
         1.8      Basic Annual Earnings..................................... 2
         1.9      Basic Biweekly Earnings................................... 2
         1.10     Board..................................................... 3
         1.11     Code...................................................... 3
         1.12     Committee................................................. 3
         1.13     Company................................................... 3
         1.14     Compensation.............................................. 3
         1.15     Continuous Service........................................ 5
         1.16     Contribution Percentage................................... 6
         1.17     Contributions............................................. 6
         1.18     CR&L...................................................... 9
         1.19     Death Valuation Date...................................... 9
         1.20     Deferral Percentage....................................... 9
         1.21     Departing Employee........................................ 9
         1.22     Distribution Year........................................ 10
         1.23     DRSPP.................................................... 10
         1.24     Effective Date........................................... 10
         1.25     Employee................................................. 10
         1.26     Employment Commencement Date............................. 11
         1.27     Entry Date............................................... 11
         1.28     ERISA.................................................... 11
         1.29     Excess Aggregate Contributions........................... 11
         1.30     Excess Contributions..................................... 11
         1.31     Excess Deferrals......................................... 11
         1.32     Five-Percent Owner....................................... 12
         1.33     Highly Compensated Employee.............................. 12
         1.34     Highly Compensated Employee Group........................ 13
         1.35     Hour of Service.......................................... 13
         1.36     Incoming Employee........................................ 13
         1.37     Insider.................................................. 13
         1.38     Long Term Disability Plan................................ 14
         1.39     Net Income Target........................................ 14
         1.40     Nonhighly Compensated Employee........................... 14
         1.41     Nonhighly Compensated Employee Group..................... 14
         1.42     Notice................................................... 14
         1.43     NOVA Chemicals Stock Fund................................ 15



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ARTICLE                                                                 Page No.
                                                                        --------
                                                                     
         1.44     NOVA Locked Stock........................................ 15
         1.45     NOVA Stock Fund.......................................... 15
         1.46     NOVA Unlocked Stock...................................... 15
         1.47     Other Events Effective Date.............................. 16
         1.48     Participant.............................................. 17
         1.49     Participant's Account.................................... 17
         1.50     Period of Severance...................................... 17
         1.51     Plan..................................................... 18
         1.52     Plan Administrator....................................... 18
         1.53     Plan Year................................................ 18
         1.54     Profit Sharing Allocations............................... 18
         1.55     Qualified Domestic Relations Order....................... 19
         1.56     Reciprocal Plan.......................................... 20
         1.57     Reemployment Commencement Date........................... 21
         1.58     Required Beginning Date.................................. 21
         1.59     Severance from Service Date.............................. 21
         1.60     Splitoff Effective Date.................................. 21
         1.61     Termination Date......................................... 21
         1.62     Top Heavy................................................ 21
         1.63     Total Value.............................................. 21
         1.64     TransCanada Stock Fund................................... 23
         1.65     Transferred Employee..................................... 23
         1.66     Trust Agreement.......................................... 23
         1.67     Trustee.................................................. 23
         1.68     Trust Fund............................................... 23
II.      GENERAL............................................................ 1
         2.1      Capacity.................................................. 1
         2.2      Applicable Law............................................ 1
         2.3      Construction.............................................. 1
         2.4      Form of Notice............................................ 1
         2.5      Time of Payment........................................... 1
         2.6      Percentages............................................... 2
         2.7      Share Distribution........................................ 2
         2.8      Share Limitation.......................................... 2
III.     ELIGIBILITY AND REGISTRATION....................................... 1
         3.1      Entry Dates............................................... 1
         3.2      Suspension of Voluntary, Basic Savings
                  and Matching Contributions................................ 2
         3.3      Disability................................................ 2
         3.4      Suspended Participation................................... 2
         3.5      Contributions During Period of Military Leave............. 3
IV.      CONTRIBUTIONS...................................................... 1
         4.1      Company Contributions..................................... 1
         4.2      Voluntary Savings Contributions........................... 4
         4.3      Limit on Pre-Tax Contributions............................ 4



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ARTICLE                                                                 Page No.
                                                                        --------
                                                                     
         4.4      Limit on Post-Tax Contributions........................... 7
         4.5      Rollover Contributions................................... 10
V.       MAINTENANCE OF PARTICIPANT'S ACCOUNTS.............................. 1
         5.1      Account................................................... 1
         5.2      Annual NOVA Equity Account................................ 2
         5.3      Annual TransCanada Equity Account......................... 3
         5.4      Types of Withdrawal or Transfer Between Accounts.......... 3
         5.5      Required Holding Period................................... 4
         5.6      Disability................................................ 4
         5.7      Takeover or Issuer Bid.................................... 5
         5.8      Investment in NOVA Stock.................................. 6
         5.9      Voting NOVA Stock......................................... 7
VI.      INVESTMENT......................................................... 1
         6.1      Deposits.................................................. 1
         6.2      Investment Funds.......................................... 2
         6.3      Investment of a Participant's Account..................... 2
         6.4      Changing Allocations and Authorizations................... 3
         6.5      Valuation of Assets....................................... 4
VII.     VESTING............................................................ 1
         7.1      Account................................................... 1
         7.2      NOVA Equity Account....................................... 1
         7.3      Earnings.................................................. 1
         7.4      Allocation................................................ 1
         7.5      Decreases................................................. 1
VIII.    ASSIGNMENT......................................................... 1
         8.1      No Assignment............................................. 1
         8.2      Qualified Domestic Relations Orders....................... 1
         8.3      Loans..................................................... 3
IX.      WITHDRAWALS AND DISTRIBUTIONS...................................... 1
         9.1      Withdrawals............................................... 1
         9.2      Withdrawal of Stock....................................... 3
         9.3      Sale of Stock to Fund Loan................................ 3
         9.4      Death before Retirement................................... 3
         9.5      Form of Benefit........................................... 4
         9.6      Required Distributions.................................... 5
         9.7      .......................................................... 5
         9.8      Distributions Requiring Consent........................... 6
         9.9      Notice Period............................................. 6
         9.10     Direct Rollovers.......................................... 7
         9.11     Lost Participants......................................... 8
X.       THE COMMITTEE...................................................... 1
         10.1     Structure................................................. 1
         10.2     Powers, Authorities and Discretions....................... 1
         10.3     Committee Oversight of the Trust Fund..................... 4



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ARTICLE                                                                 Page No.
                                                                        --------
                                                                     
XI.      MANAGEMENT OF THE TRUST FUND....................................... 1
         11.1     Establishment of the Trust Fund........................... 1
         11.2     Third-Party Trustee....................................... 1
         11.3     Expenses.................................................. 1
         11.4     Valuation of the Trust Fund............................... 1
XII.     AMENDMENTS TO THE PLAN............................................. 1
         12.1     Amendment or Termination.................................. 1
         12.2     Preservation of Benefits.................................. 1
         12.3     Correcting Errors......................................... 1
         12.4     Effect on Trustee......................................... 1
         12.5     Merger.................................................... 1
XIII.    LIMITATION ON ANNUAL ADDITIONS..................................... 1
         13.1     Maximum Annual Additions.................................. 1
         13.2     Participation in Other Company Plans...................... 1
         13.3     Incorporation by Reference of Code Section 415............ 1
         13.4     No Contractual Right To Excess Contributions.............. 1
XIV.     APPLICATION FOR BENEFITS........................................... 1
         14.1     Information From Participant.............................. 1
         14.2     Claims.................................................... 1
         14.3     Appeals................................................... 1
XV.      TOP-HEAVY PROVISIONS............................................... 1
         15.1     Effect.................................................... 1
         15.2     Top-Heavy Plan............................................ 1
         15.3     Top-Heavy Definitions..................................... 1
         15.4     Effect on Code Section 415 Limits......................... 4
         15.5     Top-Heavy Minimum Contributions........................... 4
XVI.     MISCELLANEOUS...................................................... 1
         16.1     Interpretation of Plan.................................... 1
         16.2     Payment of Benefits....................................... 1
         16.3     Return of Contributions................................... 1
         16.4     Sale of Stock to a Disqualified Person.................... 1
         16.5     Good Faith................................................ 2
         16.6     Fiduciaries and Liability................................. 2
         16.7     Indemnity................................................. 2
         16.8     Actions Subject to Law.................................... 3
         16.9     Plan Not Contract of Employment........................... 3



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                              AMENDED AND RESTATED
               NOVA CHEMICALS INC. SAVINGS AND PROFIT SHARING PLAN
                               FOR U.S. EMPLOYEES

     The NOVA Chemicals Inc. Savings and Profit Sharing Plan for U.S. Employees
(formerly know as the Employee Savings and Profit Sharing Plan) (the "Plan") was
established by Polysar Incorporated to cover its Employees and Employees of
Affiliated Companys designated for participation by the Board, as such terms are
defined below. Effective as of December 31, 1991, Polysar Incorporated, through
a series of mergers, became Novacor Chemicals Inc.

     The Plan was amended and restated for the benefit of Eligible Employees
described herein to reflect the changes necessitated by the Uruguay Rounds
Agreement Act, the Uniformed Services Employment and Reemployment Act, the Small
Business Job Protection Act of 1996, the Taxpayer Relief Act of 1997, the
Retirement Reconciliation Act of 1998, and the Consolidated Appropriations Act
of 2001 (collectively referred to as "GUST"), and the Regulations and other IRS
guidance promulgated thereunder, effective retroactive to January 1, 1997, such
other dates as required by GUST, or as otherwise stated in this restated Plan.

     The Plan is intended to provide Eligible Employees with periodic income
after retirement in addition to benefits under the Social Security Act. A Trust
Agreement (the "Trust") has been adopted by the Employer and forms a part of
this Plan.

     It is intended that the Plan, as amended and restated herein, will continue
to meet the requirements for qualification as a profit sharing plan under
Section 401(a) of the Internal Revenue Code of 1986 (the "Code"), as amended
from time to time, and as a cash or deferred arrangement under Section 401(k) of
the Code, and that the Trust shall continue to be exempt from taxation as
provided under Section 501(a) of the Code.

     The Trustee of the Plan is authorized to invest so much of the assets of
the Trust in NOVA Chemicals common shares as are designated herein for such
investment, regardless of the percentage of Trust assets represented by such
investment, subject to the limitation set forth in Section 2.8 of Article II.


     This Plan is intended to qualify under ERISA Section 404(c) and the
Regulations issued thereunder with the effect that the Plan fiduciaries are
relieved of liability, to the maximum extent allowed under ERISA Section 404(c),
for any losses that are the necessary result of investment directions made by
Participants or Beneficiaries of deceased Participants.

     Except as otherwise specifically and expressly provided herein:

     (a)  the provisions of this amended and restated Plan shall apply only
to individuals who are Eligible Employees on or after January 1, 1997; and

     (b)  a former Employee's eligibility for and amount of benefits, if
any, payable to or on behalf of such former Employee, shall be determined in
accordance with the provisions of the Plan in effect when his employment
terminated. The benefit payable to or on behalf of a Participant included under
the Plan in accordance with the following provisions shall not be affected by
the terms of any amendment to the Plan adopted after such Participant's

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