EX-10.4



 Exhibit 10.4 
 SCHLUMBERGER 2010 OMNIBUS STOCK INCENTIVE PLAN 
 2013 ONE YEAR PERFORMANCE
SHARE UNIT AWARD AGREEMENT 
 This Performance Share Unit Award Agreement (“Agreement”) is entered into effective
by and between Schlumberger Limited (the “Company”), and Simon Ayat (“Employee”), pursuant to the Schlumberger 2010 Omnibus Stock Incentive Plan (the “Plan”). Employee and the Company agree to execute such further
instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement. 
 1.
Award. In consideration of Employee’s continued employment as hereinafter set forth, the Company hereby grants to Employee an award of “Performance Share Units”, provided that (except as otherwise provided in this Agreement)
the final number of Performance Share Units shall be determined in accordance with the performance criteria set forth on Attachment I. The Target Performance Share Units subject to this award is set forth in an award notice previously delivered to
Employee. The Performance Share Units are notional units of measurement denominated in shares of Common Stock. Each Performance Share Unit represents a right to receive one share of Common Stock or equivalent value, subject to the conditions and
restrictions on transferability set forth below and in the Plan. 
 2. Vesting of Performance Share Units. The period of
time between the date of grant specified in the award notice (the “Grant Date”) and the vesting of Performance Share Units (and the termination of restrictions thereon) shall be referred to herein as the “Performance Period.” On
January 17, 2014 (the “Vesting Date”), a number of Performance Share Units shall vest based on the extent to which the Company has satisfied the performance condition set forth on Attachment I to this Agreement, provided that Employee
is continuously employed by the Company in a position eligible to receive Performance Share Units pursuant to this Agreement (as determined by the Committee in its sole and absolute discretion) (an “Eligible Position”) through the Vesting
Date and has not experienced a Termination of Employment as of such date. 
 3. Settlement of Performance Share Units.
Payment of vested Performance Share Units shall be made in shares of Common Stock as soon as administratively practicable, but in no event later than 2-1/2 months following the year in which the Performance Share Units vest (the “Settlement
Date”); provided, however, that the Committee may, in its sole and absolute discretion, settle the vested Performance Share Units in cash based on the Fair Market Value of the shares of Common Stock on the Settlement Date. 

4. Forfeitures of Performance Share Units. 

(a) Until the Performance Period specified in Section 2 has expired, upon Employee’s Termination of Employment
or Employee ceasing to be employed in an Eligible Position, Employee shall immediately forfeit all Performance Share Units, without the payment of any consideration. Upon forfeiture, neither Employee nor any successors, heirs, assigns, or legal
representatives of Employee shall thereafter have any further rights or interest in the Performance Share Units. 

(b) Notwithstanding any provision in this Agreement to the contrary, if Employee engages in Detrimental Activity (as
defined below) prior to the Settlement Date, Employee shall immediately forfeit all Performance Share Units without the payment of any consideration. 







 5. Restrictions on Transfer. 

(a) Performance Share Units granted hereunder to Employee may not be sold, assigned, transferred, pledged or otherwise
encumbered, whether voluntarily or involuntarily, by operation of law or otherwise, other than to the Company as a result of the forfeiture of units as provided herein or pursuant to Section 10. 

(b) Consistent with the foregoing, except as contemplated by Section 10, no right or benefit under this Agreement
shall be subject to transfer, anticipation, alienation, sale, assignment, pledge, encumbrance or charge, whether voluntary, involuntary, by operation of law or otherwise, and any attempt to transfer, anticipate, alienate, sell, assign, pledge,
encumber or charge the same shall be void. No right or benefit hereunder shall in any manner be liable for or subject to any debts, contracts, liabilities or torts of the person entitled to such benefits. If Employee shall attempt to transfer,
anticipate, alienate, assign, sell, pledge, encumber or charge any right or benefit hereunder, other than as contemplated by Section 10, or if any creditor shall attempt to subject the same to a writ of garnishment, attachment, execution,
sequestration, or any other form of process or involuntary lien or seizure, then such attempt shall have no effect and shall be void. 
 6. Rights as a Stockholder. Employee shall have no rights as a stockholder with regard to the Performance Share Units. Rights as a stockholder shall arise only if the Performance Share Units are
settled in shares of Common Stock as set forth in Section 3. 
 7. Taxes. To the extent that the receipt of the
Performance Share Units or the payment upon lapse of any restrictions results in income to Employee for federal or state income tax purposes or in any other cases where the Company holds the view that it is obligated to withhold taxes, Employee
shall deliver to the Company immediately prior to the time of such receipt or lapse, as the case may be, such amount of money or shares of Common Stock owned by Employee, at Employee’s election, as the Company may require to meet its obligation
under applicable tax laws or regulations, and, if Employee fails to do so, the Company is authorized to withhold from the payment for vested Performance Share Units or from any cash or other form of remuneration then or thereafter payable to
Employee an amount equal to any tax required to be withheld by reason of such resulting compensation income. The Performance Share Units are intended to be “short-term deferrals” exempt from Section 409A and shall be construed and
interpreted accordingly. 
 8. Changes in Capital Structure. As more fully described in the Plan, if the outstanding
shares of Common Stock shall at any time be changed or exchanged by declaration of a stock dividend, stock split, combination of shares, or recapitalization, the number and kind of Performance Share Units shall be appropriately and equitably
adjusted so as to maintain their equivalence to the proportionate number of shares. 

  
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 9. Compliance With Securities Laws. The Company shall not be required to deliver any
shares of Common Stock pursuant to this Agreement if, in the opinion of counsel for the Company, such issuance would violate the Securities Act of 1933 or any other applicable federal or state securities laws or regulations or the laws of any other
country. Prior to the issuance of any shares pursuant to this Agreement, the Company may require that Employee (or Employee’s legal representative upon Employee’s death or Disability) enter into such written representations, warranties and
agreements as the Company may reasonably request in order to comply with applicable securities laws or with this Agreement. 

10. Assignment. The Performance Share Units are not transferable (either voluntarily or involuntarily) by the recipient except by
will or the laws of descent and distribution. Payment of the Performance Share Units after your death shall be made to your estate or, in the sole and absolute discretion of the Committee, to the person or persons entitled to receive such payment
under the laws of descent and distribution. No purported assignment or transfer, whether voluntary or involuntary, by operation of law or otherwise, shall vest in the purported assignee or transferee any interest or right therein whatsoever but
immediately upon any such purported assignment or transfer, or any attempt to make the same, the Performance Share Units shall terminate and become of no further effect. 
 11. Successors and Assigns. This Agreement shall bind and inure to the benefit of and be enforceable by Employee, the Company and their respective permitted successors or assigns (including
personal representatives, heirs and legatees). Employee may not assign any rights or obligations under this Agreement except to the extent, and in the manner, expressly permitted herein. 

12. Limitation of Rights. Nothing in this Agreement or the Plan may be construed to: 

(a) give Employee any right to be awarded any further Performance Share Units (or other form of stock incentive awards)
other than in the sole discretion of the Committee; 
 (b) give Employee or any other person any interest in any
fund or in any specified asset or assets of the Company (other than the Performance Share Units); or 
 (c)
confer upon Employee the right to continue in the employment or service of the Company or any Subsidiary. 
 13.
Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement. 

14. No Waiver. The failure of Employee or the Company to insist upon strict compliance with any provision of this Agreement or the
failure to assert any right Employee or the Company may have under this Agreement shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. 

15. Definitions. Capitalized terms used in this Agreement and not otherwise defined herein shall have the meanings set forth in
the Plan. Certain other terms used herein have definitions given to them in the first place in which they are used. In addition, the following terms shall have the meanings set forth in this Section 15. 

  
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 (a) “Detrimental Activity” means activity that is determined by
the Committee in its sole and absolute discretion to be detrimental to the interests of the Company or any of its Subsidiaries, including but not limited to situations where a Employee: (i) divulges trade secrets, proprietary data or other
confidential information relating to the Company or to the business of the Company and any Subsidiaries, (ii) enters into employment with or provides services to any company listed on the Philadelphia Oil Service Sector Index (or any successor
index) as of the date of Employee’s Termination of Employment (or any affiliate thereof) under circumstances suggesting that Employee shall be using unique or special knowledge gained as a Company employee or Subsidiary employee to compete with
the Company or its Subsidiaries, (iii) engages or employs, or solicits or contacts with a view to the engagement or employment of, any person who is an officer or employee of the Company or its Subsidiaries, (iv) canvasses, solicits,
approaches or entices away or causes to be canvassed, solicited, approached or enticed away from the Company or its Subsidiaries any person who or which is a customer of any of such entities during the Performance Period, (v) is determined to
have engaged (whether or not prior to termination) in either gross misconduct or criminal activity harmful to the Company or a Subsidiary, or (vi) takes any action that harms the business interests, reputation, or goodwill of the Company or its
Subsidiaries. The Committee may delegate its authority to determine whether Employee has engaged in “detrimental activity” to an officer of the Company or to a subcommittee of the Committee. 

(b) “Disability” means such disability (whether physical or mental impairment) which totally and permanently
incapacitates Employee from any gainful employment in any field which Employee is suited by education, training, or experience, as determined by the Committee in its sole and absolute discretion. 

(c) “Termination of Employment” means the termination of Employee’s employment with the Company and its
Subsidiaries. Temporary absences from employment because of illness, vacation or leave of absence and transfers among the Company and its Subsidiaries shall not be considered a Termination of Employment. Any questions as to whether and when there
has been a Termination of Employment, and the cause of such termination, shall be determined by the Committee in its sole and absolute discretion. 
 16. Miscellaneous. 
 (a) Employee hereby acknowledges that
he or she has received, reviewed and accepted the terms and conditions applicable to this Agreement. Employee hereby accepts such terms and conditions, subject to the provisions of the Plan and administrative interpretations thereof. Employee
further agrees that such terms and conditions shall control this Agreement, notwithstanding any provisions in any employment agreement or in any prior awards. 
 (b) Employee hereby acknowledges that he or she is to consult with and rely upon only Employee’s own tax, legal, and financial advisors regarding the consequences and risks of this Agreement and the
award of Performance Share Units. 

  
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 (c) This Agreement may not be amended or modified except by a written
agreement executed by the parties hereto or their respective successors and legal representatives. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. 

(d) This Agreement shall be governed by and construed in accordance with the laws of the State of Texas (except that no
effect shall be given to any conflicts of law principles thereof that would require the application of the laws of another jurisdiction). Venue for any dispute arising under this Agreement shall lie exclusively in the state and/or federal courts of
Harris County, Texas and the Southern District of Texas, Houston Division, respectively. 
 17. Counterparts. This
Agreement may be executed in counterparts, which together shall constitute one and the same original. 
 IN WITNESS WHEREOF,
Schlumberger Limited has caused this Agreement to be duly executed by one of its officers thereunto duly authorized, and Employee has executed this Agreement, effective as of the day and year first above written. 

 

			
	SCHLUMBERGER LIMITED
		
	 By
	 	 
		 	
	
	EMPLOYEE
	
	 



  
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 ATTACHMENT I 
 Performance Condition 
 Subject to the provisions of this Agreement,
vesting of the Performance Share Units is conditioned upon the Company achieving annual Return on Capital Employed (“ROCE”) of greater than 12.5% for the period beginning on January 1, 2013 and ending on December 31, 2013. ROCE
means the sum of (i) income from continuing operations before charges and credits and (ii) the after tax impact of net interest expense, divided by the sum of (x) the average quarterly equity, including noncontrolling interests and
(y) the average quarterly net debt. 
 The number of Performance Share Units that shall vest as of the vesting date shall
be equal to the product of (i) the Target Performance Share Units and (ii) the Payout Factor (with any fractional shares rounded up to the next whole share). 
 The ROCE achieved shall be certified by the Committee and shall determine the Payout Factor based on the chart below. The Payout Factor for ROCE achievement levels between points on this chart shall be
determined by linear interpolation between the values listed. In no event shall the Payout Factor exceed 250%. If the ROCE achieved is less than or equal to 12.5%, the Payout Factor shall be zero. 

 

			
	 Annual ROCE Achieved
	  	 Payout Factor

	 Less than or equal to 12.5%
	  	0%
	 15% (“Target”)
	  	100%
	 20%
	  	200%
	 Greater than or equal to 25%
	  	250%


  
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