MEMBERS' RETENTION PROGRAMS. During 2000, the Company's Board of Directors voted to terminate the NYMEX Division Members' Retention and Retirement Plan. The Company had maintained a retention program which covered NYMEX NYMEX HOLDINGS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Division members, based on long-term and continuous membership. The value of the assets and related liability as of December 31, 2000 was $33.2 million. The liability was classified as current on the Consolidated Balance Sheet at December 31, 2001. Program commitments were recognized by a transfer from members' equity to a subordinated commitment to the membership. For the year ended December 31, 2000, a $3.6 million company contribution was made to this program. This plan was terminated in October 2000 and fully liquidated in January 2001. The Company also maintains a retention program for members of the COMEX Division. The annual benefit payments are $12,500 ($2,000 for options members) for ten years for vested participants and no new participants were permitted after the date of the merger. No payments were made prior to January 1, 2002. In addition, under the terms of the COMEX merger agreement, the COMEX Division program is funded at a minimum of $400,000 annually. In no event will the Company's liability be greater than $800,000 a year. Such amounts may be reduced if actuarial assumptions indicate that full funding can be achieved without making the entire funding contributions indicated above. The Company funded the COMEX program by $800,000 in 2002. Prior to the demutualization of the Company on November 17, 2000, corporate contributions to the plan were recognized as direct transfers from members' equity. After demutualization, corporate contributions and related investment earnings are charged against current operations. All benefits to be paid under the COMEX Division program shall be based upon reasonable actuarial assumptions which, in turn, are based upon the amounts that are available and are expected to be available to pay benefits, except that the benefits paid to any individual will not exceed the amounts stated above. Quarterly distributions from the program began in the second quarter of 2002. Subject to the foregoing, the Board of Directors of the Company reserves the right to amend or terminate the program upon an affirmative vote of 60% of the eligible COMEX Division plan participants.
