Solutia Inc. Executive Tax and Financial Planning Reimbursement Policy (Amended and Restated January 1, 2010)

Summary

Solutia Inc. offers a reimbursement program for designated executives, including the CEO, CFO, EVP, SVP, and others chosen by the CEO, to cover costs for professional tax, estate, financial, and retirement planning services. Executives pay for these services upfront and are reimbursed through payroll, subject to tax withholdings. The annual reimbursement limit is $7,000 for top executives and $5,000 for others, with unused amounts allowed to carry over for one year. Invoices must be submitted within 90 days after the year ends.

EX-10.20 5 exhibit_10-20.htm EXHIBIT 10.20 FINANCIAL PLANNING & TAX PREP SERVICES exhibit_10-20.htm

EXHIBIT 10.20

Solutia Inc.

Executive Tax and Financial Planning

Reimbursement Policy

Amended and Restated Effective January 1, 2010

PURPOSE

The purpose of this program is to provide financial planning and tax service reimbursement to designated executives. The Company believes that good financial planning and tax preparation by a professional reduces the time and attention the executive would otherwise spend on his personal financial affairs and affords the executive more time to focus on his/her executive responsibilities.

ELIGIBILITY

Employees eligible for the program include:

	1.	CEO, CFO, EVP and SVP (Level 1)
	2.	Employees designated as participants in the program by the CEO (Level 2)

PROGRAM SUMMARY

A. Eligible services for reimbursement

	1.	Tax planning and preparation
	2.	Estate planning, including wills and trusts
	3.	Financial planning
	4.	Retirement planning

B. Administration

When the executive receives an invoice from a qualified professional of his/her choice, the invoice should be paid by the executive directly to the vendor. Reimbursement for the paid invoice will be made to the executive through payroll after submission of the invoice to the Human Resources Department. The Human Resources Department will submit the invoice for processing once approval is received from the most senior executive in Human Resources.

Reimbursement under this policy will be processed through the payroll system and will be subject to any required tax withholding the company may determine applies including, federal state, FICA and Medicare tax. The reimbursement is not eligible for tax gross-up. Therefore, the reimbursement will consist of the gross amount submitted for reimbursement, less required tax withholdings.

Invoices for any calendar year should be presented for reimbursement within 90 days following the end of the calendar year in which covered expenses were incurred.

C. The maximum annual reimbursement per calendar year

	Level 1- CEO, CFO, EVP and SVP		$	7,000
	Level 2- Other eligible executives		$	5,000

Monies not used in one year can be carried over only to the following year.