EX-10.3



 Exhibit 10.3 
 Administrative Rules 
 of the 

Compensation Committee 
 of the 
 Board of Directors 

of 

National Fuel Gas Company 
 As amended and restated 
 effective December 7, 2011 







 TABLE OF CONTENTS 

 

															
	I.	  	Meetings	  	 	1	  
			
	II.	  	Quorum and Voting; Delegation	  	 	2	  
			
	III.	  	Grants and Awards Under the Plans	  	 	2	  
				
		  	A.	  	General Rules Regarding Awards Under the 1997 and 2010 Plans	  	 	3	  
					
		  		  	1.	  	Making of An Award	  	 	3	  
		  		  	2.	  	Contemporaneous Awards	  	 	3	  
		  		  	3.	  	Stock-Based Awards	  	 	3	  
		  		  		  	a.	  	Source	  	 	3	  
		  		  		  	b.	  	Cash Dividends and Cash Dividend Equivalents	  	 	3	  
		  		  		  		  	i.	  	Stock Based Awards Other Than Restricted Stock	  	 	3	  
		  		  		  		  	ii.	  	Restricted Stock Awards	  	 	4	  
		  		  		  	c.	  	Payment	  	 	4	  
		  		  	4.	  	Withholding Taxes	  	 	4	  
		  		  	5.	  	Deferral of Payment	  	 	5	  
				
		  	B.	  	Stock Options Under the 1997 and 2010 Plans	  	 	5	  
					
		  		  	1.	  	Designation	  	 	5	  
		  		  	2.	  	Price	  	 	6	  
		  		  	3.	  	Exercise Period/Duration	  	 	6	  
		  		  		  	a.	  	Non-Qualified Stock Options Under the 1997 and 2010 Plans	  	 	6	  
		  		  		  	b.	  	Incentive Stock Options Under the 1997 Plan	  	 	6	  
		  		  		  	c.	  	Suspension of Rights to Exercise	  	 	7	  
		  		  		  	d.	  	Delegation of Authority	  	 	7	  
		  		  	4.	  	Death or Other Termination of Employment	  	 	8	  
		  		  		  	a.	  	Definitions	  	 	8	  
		  		  		  	b.	  	Non-Qualified Stock Options Under the 1997 and 2010 Plans	  	 	8	  
		  		  		  	c.	  	Extension of Incentive Stock Options Under the1997 and 2010 Plans	  	 	10	  
		  		  	5.	  	Mechanics of Exercise	  	 	11	  
		  		  	6.	  	Reload Options	  	 	11	  
				
		  	C.	  	SARs Under the 1997 or 2010 Plan	  	 	11	  


  
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		  	D.	  	Restricted Stock and Restricted Stock Units Under the 1997 and 2010 Plans	  	 	12	  
					
		  		  	1.	  	Restrictions on Transferability; Vesting	  	 	12	  
		  		  	2.	  	Mechanics of Grant	  	 	12	  
			
	IV.	  	Procedures For Exercising Stock Options and SARs	  	 	13	  
				
		  	A.	  	Authority and Scope	  	 	13	  
				
		  	B.	  	Notice of Exercise	  	 	13	  
					
		  		  	1.	  	Form and Delivery	  	 	13	  
		  		  	2.	  	Exercise Date	  	 	13	  
				
		  	C.	  	Payment of Exercise Price	  	 	14	  
					
		  		  	1.	  	Cash Payment	  	 	14	  
		  		  	2.	  	Payment with Existing Company Stock	  	 	14	  
		  		  	3.	  	Additional Time to Pay Exercise Price	  	 	15	  
		  		  	4.	  	Cashless Exercise	  	 	16	  
				
		  	D.	  	Restrictions Relating to Possession of Material Nonpublic Information	  	 	17	  


  
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 ADMINISTRATIVE 

RULES OF THE 

COMPENSATION COMMITTEE 
 OF THE 
 BOARD OF DIRECTORS 

OF 

NATIONAL FUEL GAS COMPANY 
 As amended and restated 
 effective December 7, 2011 

 

	I.	MEETINGS 

 Each
meeting (“Meeting”) of the Compensation Committee (“Committee”) of the Board of Directors of National Fuel Gas Company (“Company”) shall be held as indicated in a notice made in accordance with these rules. Notice of
each Meeting, stating the place, date and hour thereof, shall be given to each member of the Committee (“Member”) by e-mailing, faxing, telephoning or personally delivering the same to him at least one day before the meeting, if there is
no reason to believe it was not received, or by mailing the same to him at least five days before the Meeting, in all cases to the Member’s last known address or addresses as the same appears upon the records of the Company. All such notices
shall be effective when sent, including the leaving of a message recorded at, or spoken to any individual answering, the Member’s designated telephone number(s). The attendance of any Member at a Meeting without protesting prior to the end of
the Meeting the lack of notice of such meeting shall constitute a waiver of notice by that Member. 
 Any one or more Members of
the Committee may participate in a Meeting by means of a conference telephone or similar equipment. Participation by such means shall constitute presence in person at a Meeting. 

The Committee may also take action by unanimous written consent. 








	II.	QUORUM AND VOTING; DELEGATION 

 At all Meetings, a quorum shall be required for the transaction of business and shall consist of a majority of the entire Committee. The majority vote of the Members at a Meeting at which a quorum is
present shall decide any question that may come before the meeting. 
 Consistently with limitations imposed by the Plans (as
defined below), the Committee may delegate in these rules or by resolution any or all of its authority to the Chief Executive Officer, to the Secretary and to any other officer of the Company (individually, “Delegate”), so long as the
Delegate has no potential conflict of interest which would cause him or her not to exercise his or her good faith independent business judgment in respect of a delegated matter. Subject to such limitations, the Committee hereby delegates the power
to implement its decisions to appropriate officers of the Company. 
  

	III.	GRANTS AND AWARDS UNDER THE PLANS  

 The following rules and regulations shall apply with respect to grants and awards of stock options, stock appreciation rights (“SARs”), shares of restricted stock (“Restricted Stock”)
and restricted stock units (“Restricted Stock Units”) under the Company’s 1997 Award and Option Plan (“1997 Plan”) or the Company’s 2010 Equity Compensation Plan (“2010 Plan”) (as amended, each individually a
“Plan;” together the “Plans”). 
 Any capitalized term not defined in these rules shall have the same
meaning as in the applicable Plan. The following rules are intended to supplement the Plans and, to the extent that any rule is determined to be inconsistent with any Plan, the Plan shall control. 

These rules may be amended by the Committee at any time and from time to time. Except to the extent otherwise specified in the particular
Award Notice or at the time these rules are amended, any grant or award under the Plans shall be subject to these rules as in effect on the date of the grant or award. 

  
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	 	A.	GENERAL RULES REGARDING AWARDS UNDER THE 1997 AND 2010 PLANS 


 

	 	1.	Making of An Award 

 An
Award within the meaning of these rules occurs upon the grant by the Committee of any stock option, SAR, Restricted Stock or Restricted Stock Unit. An Award Notice within the meaning of these rules means a written notice from the Company to a
Participant (including a notice provided to the recipient in an electronic form or by a link to cite of the notice) that sets forth the terms and conditions of an Award in addition to those conditions established in the applicable Plan and by the
Committee’s exercise of its administrative powers. 
  

	 	2.	Contemporaneous Awards  


Unless the Committee shall otherwise expressly provide at the time of grant, an Award of one type granted contemporaneously with an Award
of any other type shall be treated as having been granted in combination, and not in the alternative, with the Award of the other type. 
  

	 	3.	Stock-based Awards 


a. Source. Stock-based Awards, to the extent actually paid in Common Stock, shall reduce treasury shares (if any) first and
thereafter authorized but unissued shares. 
 b. Cash Dividends and Cash Dividend Equivalents. 

(i) Stock-Based Awards Other Than Restricted Stock. No stock-based Award other than Restricted Stock carries with it the
entitlement to receive cash 

  
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dividends or cash dividend equivalents until such stock-based Award is exercised (in the case of a stock option or stock-settled SAR) or earned. If a stock-based Award is exercised or earned
prior to or on the record date for determination of stockholders entitled to receive a cash dividend, then such stock-based Award or the securities resulting from the exercise thereof, as the case may be, shall be entitled to receive such cash
dividend (or, if the shares related thereto have not been issued as of the record date, to receive a dividend equivalent in respect thereof). 
 (ii) Restricted Stock Awards. Notwithstanding clause (i) of this paragraph (b) or Section 24 of the 1997 Plan or Section 14(e) of the 2010 Plan, dividends shall be payable with
respect to each outstanding Award of Restricted Stock whether or not the restrictions in such Award have been satisfied or have lapsed. 
 c. Payment. Payment of stock-based Awards shall be made with Common Stock. 
  

	 	4.	Withholding Taxes 

 At
the time a Participant is taxable with respect to stock options, SARs, Restricted Stock or Restricted Stock Units granted under the Plans, or the exercise or surrender of the same, the Company (or, if applicable, an employer other than the Company)
shall have the right to withhold from amounts payable to the Participant under the Plan or from other compensation payable to the Participant in its sole discretion, or require the Participant to pay to it, an amount sufficient to satisfy all
federal, state and/or local (including foreign) withholding tax requirements. A Participant may, subject to Section IV(D) below, pay such tax withholding amounts in whole or in part by requesting that the Company withhold such amounts of taxes from
the amounts owed to the Participant, or by delivering as payment to the Company shares of Common Stock to be canceled having a Fair Market Value less than or equal to the amount of 

  
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such required withholding taxes (with the remainder payable in cash); provided, however, that to the extent that such withholding is satisfied by the Company’s withholding and/or canceling
any shares of Common Stock, in no event may the Fair Market Value of the Common Stock withheld and/or canceled exceed the amount required to be withheld at law. 
  

	 	5.	Deferral of Payment 

 The
Committee intends to permit Participants to elect, at such time or times as the Committee shall permit, to defer the receipt of payment of Awards that are payable in cash; provided, however, that (1) under the then applicable income tax rules
the Participant is not in constructive receipt of, and subject to income tax on, the payment prior to its actual receipt, (2) such deferral does not result in any of the Plans being subject to the Employee Retirement Income Security Act of
1974, as amended, (3) if the Participant is an Executive Officer (i.e., is subject to Section 16 of the Securities Exchange Act of 1934, including a retired officer who is, at the relevant time, a director), such election shall comply with
Rule 16b-3 promulgated pursuant to the Securities Exchange Act of 1934, as then in effect, and (4) such election would not result in the imposition of an additional tax under Section 409A of the Code on the Participant. The Committee
hereby delegates to the Chief Executive Officer, President, Treasurer, Secretary and General Counsel of the Company, and each of them, the Committee’s authority to establish the time or times at which deferral elections may be permitted in
respect of any Award. 
  

	 	B.	STOCK OPTIONS UNDER THE 1997 AND 2010 PLANS 

  

	 	1.	Designation 

 The Award
Notice setting forth the terms and conditions of a grant of a stock option shall indicate the applicable Plan under which the stock option is granted and 

  
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whether the stock option is an incentive stock option (within the meaning of Section 422 of the Code, an “ISO”) or a non-qualified stock option (“NSO”). The Committee
hereby delegates to the Chief Executive Officer, President, Treasurer, Secretary and General Counsel of the Company, and each of them, the authority to prepare, execute and deliver Award Notices consistent with actions taken by the Committee. The
Committee hereby directs that any action taken by the Committee granting stock options without specifying whether the stock options are ISOs be interpreted as follows: 
 a. an award of stock options under the 1997 Plan or the 2010 Plan shall be deemed to be awards of NSOs only; and 
 b. an award of stock options after December 12, 2006 under the 1997 Plan shall be deemed to be NSOs regardless of the language of the award. 

 

	 	2.	Price  

 The price at
which Common Stock may be purchased upon exercise of a stock option (the “exercise price”) shall be the Fair Market Value of the Common Stock on the date of the Award. 

 

	 	3.	Exercise Period/Duration  


a. Non-Qualified Stock Options Under the 1997 and 2010 Plans. Except as may otherwise be expressly provided in the Plan or in
Section III(B)(4) of these rules, a non-qualified stock option granted under the 1997 Plan or the 2010 Plan first may be exercised twelve months after the date of grant. 
 b. Incentive Stock Options Under the 1997 and 2010 Plans. Except as may otherwise be expressly provided in the Plan, an ISO granted under the 1997 Plan or the 2010 Plan first may be exercised
twelve months after the date of grant, or, if earlier, on the date of the optionee’s death. 

  
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 c. Suspension of rights to exercise. The Committee may, among other things, suspend
or limit the right of any Participant to exercise stock options during any period: 
 (i) for which counsel for the Company
advises in writing that such stock option exercises would violate federal or state securities laws or other applicable laws, rules, regulations, judgments, or orders; or 
 (ii) during which management is investigating an allegation that the Participant has engaged in any act which would permit the Committee to forfeit the Participant’s stock options pursuant to
Section 18 of the 1997 Plan or Section 14(c) of the 2010 Plan. 
 d. Delegation of Authority. The Committee
hereby delegates to the Chief Executive Officer, President, Treasurer, Secretary and General Counsel of the Company, and each of them, the Committee’s authority to suspend Participants’ rights to exercise stock options during the periods
described in Section III(B)(3)(c) above. Management shall report to the Committee at each Committee meeting any suspension actions taken or ongoing since the previous meeting, and the Committee shall adopt a resolution ratifying, continuing and/or
discontinuing each such suspension. 

  
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	 	4.	Death or Other Termination of Employment 

 a. Definitions. For purposes of these rules, the following terms shall have the following meanings: 
 (i) For purposes of the 1997 Plan, “Disability” shall mean that the Participant is eligible to receive disability benefits under Article 3 of The National Fuel Gas Company Retirement Plan
(“Retirement Plan”), as from time to time amended, or that the Participant would be eligible to receive such benefits if he or she were a participant in the Retirement Plan. 

(ii) “Subsidiary” shall mean a corporation or other business entity in which the Company directly or indirectly has an
ownership interest of fifty percent (50%) or more. 
 b. Non-Qualified Stock Options Under the 1997 Plan. If
termination of employment occurs by reason of death, each NSO awarded under the 1997 Plan shall, to the extent not then exercisable, become immediately and fully exercisable, and shall remain exercisable for five years from such termination or the
balance of its unexpired term, whichever is less. If termination of employment occurs by reason of voluntary resignation (including retirement) at or after age 60, each NSO awarded under the 1997 Plan shall, to the extent not then exercisable,
become exercisable in accordance with the terms of the 1997 Plan, and shall remain exercisable until the earlier of the fifth anniversary of such termination or the expiration of the balance of its term. If termination of employment occurs by reason
of Disability, (i) each NSO awarded under the 1997 Plan that is then exercisable shall remain exercisable for five years from such termination or the balance of its unexpired term, whichever is less, (ii) each NSO awarded under the 1997
Plan on or after December 7, 2011 that is not then 

  
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exercisable shall become immediately and fully exercisable, and shall remain exercisable for five years from such termination or the balance of its unexpired term, whichever is less, and
(iii) each NSO awarded under the 1997 Plan prior to December 7, 2011 that is not then exercisable shall terminate in accordance with the terms of the 1997 Plan. If termination of employment occurs by reason of divestiture by the Company of
one or more Subsidiaries or other business segments, divisions or operations in a transaction that does not otherwise qualify as a Change in Control or Change in Ownership as those terms are defined in the 1997 Plan, (i) each NSO awarded under
the 1997 Plan that is then exercisable shall remain exercisable for five years from such termination or the balance of its unexpired term, whichever is less, (ii) each NSO awarded under the 1997 Plan on or after December 7, 2011 that is
not then exercisable shall become immediately and fully exercisable, and shall remain exercisable for three years from such termination or the balance of its unexpired term, whichever is less, and (iii) each NSO awarded under the 1997 Plan
prior to December 7, 2011 that is not then exercisable shall terminate in accordance with the terms of the 1997 Plan. If termination of employment occurs by reason of discharge by the Company for cause, or voluntary resignation of the
Participant prior to age 60, each NSO awarded under the 1997 Plan shall lapse unless extended by the Committee in its discretion. If termination of employment occurs for any other reason, each NSO awarded under the 1997 Plan that is exercisable at
the time of termination of employment or becomes exercisable pursuant to the terms of the 1997 Plan shall remain exercisable for five years from such termination (or such greater period as the Committee deems appropriate) or the balance of its
unexpired term, whichever is less. 

  
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 c. Extension of Incentive Stock Options Under the 1997 Plan. The Committee hereby
determines that: 
 (i) With respect to any Participant, if termination of employment occurs by reason of death, Disability or
voluntary resignation (including retirement) at or after age 60, an officer of the Company other than such Participant shall, within thirty days of such termination, offer in writing to extend the period during which any ISO granted to such optionee
under the 1997 Plan may be exercised, to the date which is the earlier of five years from such termination of employment or the date on which the ISO would have otherwise expired absent such termination of employment. 

(ii) If termination of such Participant’s employment occurs for any other reason, an officer of the Company other than such
Participant, if the Committee so authorizes, shall, within thirty days of such termination, offer to extend the period during which any ISO granted to such optionee under the 1997 Plan may be exercised to the date specified in the offer, which shall
not be later than the earlier of five years from such termination of employment or the date on which the ISO would have otherwise expired absent such termination of employment. 

(iii) The written offer shall notify the optionee, or the optionee’s estate or the person to whom the optionee’s rights under
the ISO are transferred by will or the laws of descent and distribution, of the right to accept the offer by consenting to the extension, in writing, within thirty days of the offer. If such consent is timely received the ISO may be exercised during
the period specified in the offer, but not later than the expiration of the exercise period specified in the Award Notice. 

  
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	 	5.	Mechanics of Exercise 


To exercise a stock option, the Participant shall provide a signed exercise notice to an appropriate officer or other designee of the
Company, which notice shall indicate which stock options are being exercised, how the exercise price is to be paid and any other appropriate information. Appropriate delivery of a signed notice of exercise binds the Participant to pay the exercise
price. Part IV of these rules contains procedures for exercising stock options. 
  

	 	6.	Reload Options 

 No
optionee shall be issued a new stock option automatically upon exercise of a stock option. However, if the Award Notice provides for the issuance of such new stock option, the new stock option shall have an exercise price equal to the Fair Market
Value of the Common Stock on the date the new stock option is issued and shall otherwise be subject, as nearly as possible, to the same terms and conditions as the exercised stock option. 

 

	 	C.	SARs UNDER THE 1997 OR 2010 PLAN 

 The base price or grant price of a SAR shall be the Fair Market Value of the Common Stock on the date of the grant of the SAR. Each SAR shall otherwise be subject to the terms and conditions imposed
(i) by the Award Notice upon the SAR, (ii) by the applicable Plan, and (iii) by these rules upon SARs and NSOs, as applicable . A SAR shall be outstanding and exercisable during the entire exercise period otherwise applicable to an
NSO if the NSO had been granted on the same day as the SAR (as adjusted in accordance with Section III(B)(4) above in the event of death or other termination of employment). 
 To exercise a SAR, the Participant shall deliver a signed exercise notice to an appropriate officer or other designee of the Company, which notice shall indicate which SARs are being exercised, and any
other appropriate information. Part IV of these rules contains 

  
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procedures for exercising SARs. Any SAR not already exercised shall be deemed to be exercised at the close of business on the scheduled expiration date of such SAR, if at such time the SAR
by its terms remains exercisable and, if so exercised, would result in a payment to the holder of such SAR. If upon any such deemed exercise the payment to the holder of such SAR is to be made in shares of Common Stock, the holder of such SAR shall
be deemed to have elected to pay the minimum required tax withholding in shares of Common Stock. 
  

	 	D.	RESTRICTED STOCK AND RESTRICTED STOCK UNITS UNDER THE 1997 AND 2010 PLANS 


 

	 	1.	Restrictions on Transferability; Vesting 

 The restrictions on transferability and vesting and all other terms and conditions of Restricted Stock and Restricted Stock Units granted under either the 1997 Plan or the 2010 Plan shall be specified in
the Award Notice. Except as otherwise provided in the applicable Plan, all shares of Restricted Stock and all Restricted Stock Units shall be subject to the Participant’s continued employment with the Company or a Subsidiary until vesting. The
Committee may accelerate the vesting of Restricted Stock or Restricted Stock Units on its own motion as it deems appropriate and in the best interests of the Company. 
  

	 	2.	Mechanics of Grant 

 The
Committee hereby delegates to appropriate officers of the Company the authority to establish and revise appropriate procedures with respect to the issuance of certificates representing Restricted Stock and the payment of dividends thereon.


  
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	IV.	PROCEDURES FOR EXERCISING STOCK OPTIONS AND SARS 

  

	 	A.	AUTHORITY AND SCOPE 


Notwithstanding any provision of any award letter issued before 1998, these are the exercise procedures for ISOs, NSOs and SARs issued
under the 1997 Plan, the 2010 Plan, and (unless the Compensation Committee specifically orders otherwise) any other compensation plan which in the future is adopted by the Company. 

 

	 	B.	NOTICE OF EXERCISE 

  

	 	1.	Form and Delivery 

 A
Participant holding stock options or SARs granted under any of the Plans elects to exercise stock options or SARs by delivering (by personal delivery, fax or e-mail) to the office of the Company’s Secretary or Assistant Secretary a Notice of
Exercise. A Notice of Exercise is a writing signed by the Participant indicating that the Participant thereby elects to exercise the stock options or SARs identified in the Notice (including the quantity and either the stock option exercise price or
the SAR base price), and describing the method by which the Participant will pay the exercise price of the stock options (since there is no exercise price payment due in connection with the exercise of a SAR). Appropriate delivery of a Notice of
Exercise binds the Participant to pay the exercise price. Optional forms of Notice of Exercise are attached to these rules (see Exhibit A). 
  

	 	2.	Exercise Date 

 The
effective date of a Notice of Exercise is the “Exercise Date”. An exercise will be effective as of the date the Notice of Exercise is received by the office of the Secretary or Assistant Secretary; provided, however, that:

 (i) a Notice of Exercise received on a trading day before trading opens that day on the New York Stock Exchange may validly
designate the Exercise Date to be the preceding trading day; 

  
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 (ii) a Notice of Exercise may validly designate the Exercise Date to be any date
later than the date the Notice of Exercise is received; and 
 (iii) if the exercise of a stock option is accomplished
through a “cashless exercise” as described in Section IV(C)(4) below, the Exercise Date shall be the date the broker sells Company stock into the market regarding that exercise. 

 

	 	C.	PAYMENT OF EXERCISE PRICE 

  

	 	1.	Cash Payment 

 To pay the
exercise price of a stock option in cash, a Participant must deliver to the Secretary or Assistant Secretary payment in full, in cash or by check payable in immediately available U.S. funds to the Company, within three business days after the
Exercise Date (except as additional time may be allowed under Section IV(C)(3) below). For purposes of these rules, the term “business day” shall mean any day other than a Saturday, Sunday, federal holiday or day on which the
Company’s principal office is closed for business. Subject to Section IV(D) below, payment of the exercise price may be partly in cash and partly in Company stock as described in Section IV(C)(2) below, or may be accomplished through a
“cashless exercise” as described in Section IV(C)(4) below. 
  

	 	2.	Payment with Existing Company Stock 

 To pay the exercise price in shares of Company stock already owned by a Participant, the Participant must surrender to the Company shares having a total Fair Market Value (as of the Exercise Date) of at
least the total exercise price, or pay any shortfall in cash. The Participant must, within three business days after the Exercise Date (except as additional time may be allowed under Section IV(C)(3) below) do one or both of the following:

  

	 	a.	regarding shares in the Company’s Direct Registration System, comply with the Company’s procedures (including signature guarantee requirements) for
transferring book-entry shares to the Company; or 


  
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	 	b.	regarding shares that are evidenced by a paper stock certificate, deliver the certificate to the Secretary or Assistant Secretary. Each certificate delivered must have
a guaranteed signature either on the back or on a stock power to be attached. The recommended procedure for mailing certificates is to mail the certificate and signed stock power separately. 


 

	 	3.	Additional Time to Pay Exercise Price 

 If, at any time the Participant’s payment of the exercise price would otherwise be required pursuant to Section IV(C)(1) or (2) above, a Participant is either 

a. traveling away from his or her usual place of Company employment, or 

b. “disabled”, as defined in the applicable Plan or these rules, then, to the extent permitted by applicable law, the
Participant may pay the exercise price on or before the first business day after the Participant’s return to his or her usual place of NFG employment, but no later than the tenth business day after the Exercise Date. However, the President,
Chief Executive Officer, Treasurer or General Counsel of the Company shall have the authority to grant such additional time to pay the exercise price as is reasonably necessary to accommodate the travel or disability of the Participant. 

  
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	 	4.	Cashless Exercise 

 The
broker-assisted method of exercising stock options described in this Section IV(C)(4) (“cashless exercise”) requires no cash outlay by the Participant. A Participant wishing to do a cashless exercise must first establish a trading
account with a registered securities broker-dealer. Establishing that trading account will likely include the Participant’s commitment to pay the broker as described in their agreement. Upon request by a Participant, the Secretary or Assistant
Secretary will provide information that may help the Participant find a broker who has previously done cashless exercises with the Company and/or may be willing to do so at a discounted commission rate. The Participant must provide the Secretary or
Assistant Secretary with the Participant’s broker’s name, firm, address, telephone and fax numbers. 
 To do a
cashless exercise, the Participant must deliver a Notice of Exercise as described in Section IV(B)(1), and notify the Participant’s broker to proceed with the exercise and to notify the Company of the date the stock is sold. The
Participant’s broker will sell Company stock for the Participant’s account and pay to the Company the exercise price, plus any necessary tax withholding. The Company will have share certificates delivered to the Participant’s broker
within three business days after the Exercise Date, unless the Company elects to retain the certificates pending receipt of the exercise price. The Participant will be required to pay the Participant’s broker according to the agreement between
them, typically a few days’ interest on the exercise price plus a commission on the shares sold. 

  
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	 	D.	RESTRICTIONS RELATING TO POSSESSION OF MATERIAL NON-PUBLIC INFORMATION 


Notwithstanding anything to the contrary provided above in these rules, a Participant may not, while in possession of material nonpublic
information relating to the Company, or while subject to any quarterly or other “blackout period” imposed under the Company’s Policy on Insider Trading in National Fuel Gas Company Securities, (i) pay the exercise price of a
stock option with Company stock, (ii) pay tax withholding in connection with the exercise or vesting of any Award by having Company stock withheld and/or canceled, (iii) exercise SARs, or (iv) effect a cashless exercise of stock
options. For a Participant subject to a quarterly or other blackout period, these prohibited transactions include any transaction the effective date of which occurs within the blackout period. 

The restrictions set forth in this Section IV(D) shall not apply to any deemed exercise of SARs or deemed payment of tax withholding in
connection therewith pursuant to a Plan or these rules, or to any transaction effected pursuant to an instruction, contract or written plan that meets the requirements of Rule 10b5-1(c) under the Securities Exchange Act of 1934, which provides
a defense against insider trading liability. An instruction, contract or written plan relating to any transactions set forth in this Section IV(D) and intended by a Participant to comply with Rule 10b5-1 (such as a written 10b5-1 plan on a form
provided by a stockbroker) must meet the requirements of Rule 10b5-1(c) and should be pre-approved by the NFG Legal Department before the Participant enters into any transactions under that instruction, contract or written plan. 

  
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