Handbook for the BP Capital Accumulation Plan BP capital accumulation plan About Your Handbook for the BP Capital Accumulation Plan 1 Features To Help You 1 Staying Up-to-Date 1 Before You Begin … Power-of-Attorney Guidelines 2 BP Capital Accumulation Plan 3 Who Is Eligible 4 How To Make or Change Contribution Elections 4 Beneficiary Designations 4 How the Plan Works 6 Your Contributions 6 Minimum Contribution 6 Maximum Contribution 7 Catch-Up Contributions 7 What Is Included in “Eligible Pay” 8 The Advantages of Before-Tax Savings 8 The Advantages of After-Tax Savings 9 Changing Your Contribution Amount 9 Rollover Contributions 9 Company Match Contributions 9 Investment Options 10 Setting Your Investment Direction 11 Exchanging Investment Options 12 Vesting 12 How To Access Your Account Information 12 How To Take a Loan 13 Types of Loans 13 Minimum Loan Amount 13 Maximum Loan Amount 13 Interest Rate on Plan Loans 13 How To Apply for a Plan Loan 13 Repayment of Plan Loans 14 Prepaying a Plan Loan 14 How To Take a Withdrawal While You Are Employed 15 In-Service Withdrawal Sources and Timing 15 Hardship Withdrawals 16 Tax Consequences of Withdrawals 16 How To Request a Withdrawal 17 While You Are Employed at BP 17 What Happens If You Take a Leave of Absence 17 What Happens If You Die 18 Payments To Your Beneficiary 18 What Happens If You Are Rehired 18 What Happens If You Are No Longer Eligible To Participate Due To a Transfer 19 When You Leave BP 19 Automatic Distribution of Benefits Valued at or Below $5,000 19 Benefits Valued Between $1,000 and $5,000 20 Benefits Valued at $1,000 or Less 20 Requesting a Distribution 20 Minimum Required Distributions 21 Lump-Sum Distributions 21 Rollover Distributions 21 Installment Payments 22 How Installment Payments Are Calculated 22 How Installment Payments Are Withdrawn From Your Account 23 Changing the Distribution of Installment Payments 23 If You Die While Receiving Installment Payments 23 Deferring Your Distribution 24 Partial Withdrawals 24 Tax Considerations 24 Required Tax Withholding 25 Postponing Taxes and Tax Withholding 25 Additional Taxes 26 Taxes on BP ADSs 26 Reduction for Overpayment 26 What Happens If Benefits Are Denied 26 When the Plan Changes or Ends 27 Administrative Information 27 Plan Trustee 27 Plan Sponsor and Identification Number 27 Plan Administrator 28 Plan Recordkeeper 28 Agent for Service of Legal Process 29 Governing Plan Documents 29 No Right to Employment 29 Assignment of Interest/Liens on Funds or Property 29 Qualified Domestic Relations Orders (QDROs) 30 The Future of the Plan 30 What Your Rights Are Under ERISA 31 If You Have Questions About Your Benefits 32 How to File a Formal Claim Under ERISA 32 Formal Claims and Appeals Process 32 Claims Process 33 Appeals Process 34 Effect of the Appeals Administrator’s Decision 35 After the Claims and Appeals Process Has Concluded 35 Time Limits and Venue for Bringing Suit 35 Importance of Exhausting the Administrative Review Process 35 BP Benefit Plans — ERISA Plan Information 36 Accessing Additional Resources 37 BP Retirement Services at Fidelity 37 Glossary 38 This summary constitutes part of a prospectus covering securities that have been registered under the Securities Act of 1933. However, this summary does not incorporate by reference or otherwise any documents which have been filed with the U.S. Securities and Exchange Commission (“SEC”) by BP or any entity related to BP. This handbook describes the BP Capital Accumulation Plan (“CAP”) effective as of publication, September 2011. Please note that the information presented is only a summary. It replaces all previously published BP CAP summary plan descriptions. If, in our efforts to make this plan easy to understand, any of the plan provisions have been omitted or misstated, the official plan document must remain the final authority. While we intend to update this handbook on a regular basis, it is possible that, from time to time, this handbook may not be current, complete, or consistent with other information or communications. Differences between this summary and the applicable plan documents are not intended; however, if any differences are found to exist, the relevant provisions of the plan document or prospectus — and not this summary — will govern. The information in this document is intended to meet the federal disclosure requirements for Summary Plan Descriptions. BP expects to continue the plan indefinitely; nonetheless, the company reserves the right to change or end the plan at any time without advance notice. This document does not guarantee employment for any specified term and is not to be construed as a contract limiting the company’s right to terminate the employment relationship at any time. About Your Handbook for the BP Capital Accumulation Plan BP has put together this handbook for the BP Capital Accumulation Plan so that you can use your benefits to your greatest advantage. Designed to be convenient and easy to use, it can help you make your benefits even more valuable to you and your family. Features To Help You Staying Up-to-Date Within this handbook, you will find several This handbook may be updated from time features to help increase your understanding to time. You will be notified of any changes of your benefits, use your benefits wisely either by email or mail. or find answers to your questions. These features include icons which have been placed in the text to highlight essential Remember ... information for you: If you have had a change in your life and need to make changes to your savings plan c Directs you to important information you contribution elections, investment elections should pay special attention to. or beneficiary designations, or if you have any questions about your savings plan, call Points you to other sections in the handbook * BP Retirement Services at Fidelity to speak which provide you with additional with a Participant Services Representative. information. This reinforces information that needs to stay in your mind when you’re considering your choices. When you see these icons, the information is critical to your full understanding of the topic. Read to have an accurate picture of what you need to know and/or do. Other important features include: z Contacts — “Accessing Additional Resources” on page 37 gives you the phone numbers and Web sites for claims administrators. z Glossary — You will find that some benefit terms used in the handbook have very specific meanings. These terms are underlined the first time they appear in major sections. You will find their definitions in the “Glossary,” which begins on page 38. BP Capital Accumulation Plan 1 Before You Begin … Power-of-Attorney Guidelines BP will accept a power of attorney (POA) or Be sure to clearly reference “BP” in the court order (for guardians or conservators) if transmittal letter. it satisfies the guidelines applied by the Plan Administrator. If the third party request for representation does not involve a BP retirement plan Effective November 1, 2009, any third party administered by BP Retirement Services at seeking to act on behalf of a BP participant Fidelity, Fidelity will forward the document for the BP Capital Accumulation Plan through to BP’s ERISA Claims and Appeals Analyst a power of attorney must submit a power of for review. Determinations will be based on attorney, using the BP model format, to BP guidelines adopted by the Plan Administrator. Retirement Services at Fidelity. A copy of the POA form and additional information about To protect the security of participants’ submissions is available by contacting BP accounts and information, Social Security Retirement Services at Fidelity or by referring numbers and passwords or personal to the power of attorney notice/form identification numbers (PINs) are required available on LifeBenefits. when obtaining benefits or payroll information or making transactions. Each POAs or court orders pertaining to the participant is responsible for safeguarding BP Capital Accumulation Plan should be passwords and PINs. submitted to BP Retirement Services at Fidelity at the following address: BP Retirement Services at Fidelity will If sent via overnight delivery: not process a transaction if there is reason Fidelity Investments to believe that the person making the Attn: BP Retirement Services transaction is not the plan participant or 100 Crosby Parkway, Mail zone KC1F-D the participant’s agent under a POA or a Covington, KY 41015 court appointed conservator or guardian. If sent via U.S. Mail: Fidelity Investments Attn: BP Retirement Services P.O. Box 770003 Cincinnati, OH 45277-0070 2 BP Capital Accumulation Plan BP Capital Accumulation Plan Because your future financial security is so important, the company offers you the BP Capital Accumulation Plan. Participation in this plan is completely voluntary but is restricted to represented employees at the Los Angeles Refinery who were participants in the Capital Accumulation Plan on December 31, 2001. The Capital Accumulation Plan is a 401(k) The plan was formerly also an employee plan that lets you save whatever percentage stock ownership plan (ESOP) and some of your eligible pay you elect, up to plan participants may have accounts that hold and legal limits, toward your retirement. BP prior ESOP balances. matches 160% of every before-tax dollar you contribute, up to 5% of your eligible pay. This summary is part of the plan You can elect to contribute on a before-tax prospectus and replaces and supersedes or an after-tax basis, or a combination of the corresponding section of the ARCO both. All contributions and investment gains Employee Handbook dated November, or losses are credited to your plan account. 2007. The complete prospectus includes: You choose how your savings are invested z this summary of the BP Capital from a variety of investment options.