apa2021exhibit1042






Exhibit 10.42  1  SCHEDULE A  APA Corporation  Restricted Stock Unit Award Agreement       GRANT NOTICE  Recipient Name:  [Name]  Company:    APA Corporation  Notice:  A summary of the terms of your grant of Restricted Stock Units  (“RSUs”) is set out in this notice (the “Grant Notice”) but subject  always to the terms of the APA Corporation 2016 Omnibus  Compensation Plan (the “Plan”) and the Restricted Stock Unit  Award Agreement (the “Agreement”).  In the event of any  inconsistency between the terms of this Grant Notice, the terms of  the Plan and the Agreement, the terms of the Plan and the  Agreement shall prevail. The Grant is a Cash-Based Award under  Section 10 of the Plan and is subject to the provisions of the Plan  governing RSUs.  You have been awarded a grant of APA Corporation RSUs in  accordance with the terms of the Plan and the Agreement.  Details of the RSUs which you are entitled to receive is provided  to you in this Grant Notice and maintained on your account at  netbenefits.fidelity.com.  Type of Award:  Restricted Stock Unit(s)  Restricted Stock Unit:  A Restricted Stock Unit (“RSU”) as defined in the Plan and  meaning the right granted to the Recipient to receive one share of  Stock or the cash equivalent thereof for each RSU at the end of the  specified Vesting Period.  Stock: The $0.625 par value common stock of the Company or as  otherwise defined in the Plan.  Grant:  A Grant related to ______ Restricted Stock Units.  Grant Date:   [Date]  Conditions:  The Recipient may elect, at the time of the grant, to have his or her  RSUs deferred into the Deferred Delivery Plan (the “DDP”) when  





 






  2  the RSUs vest, in which case the Recipient will receive the value  of the RSUs in cash at the times specified pursuant to the DDP.   For RSUs that are not deferred, once the RSU vests, the Recipient  shall be paid the value of his or her RSUs in cash (net of cash  withheld for applicable tax withholdings).  Vesting Period: RSUs granted shall vest (i.e., restrictions shall lapse) in accordance  with the following schedule (the “Vesting Period”), provided that  the Recipient remains employed as an Eligible Person as of such  vesting date:  First day of the month following the first anniversary of the Grant  Date – 1/3 vested.  Second anniversary of the Grant Date – an additional 1/3 vested.  Third anniversary of the Grant Date – an additional 1/3 vested.  Notwithstanding the foregoing, if the Recipient’s termination of  employment from the Company and the Affiliates occurs by reason  of his or her Retirement, the Recipient shall be deemed to continue  to be employed as an Eligible Person for purposes of this Grant  and shall continue to vest with respect to a specified percentage of  RSUs over the Vesting Period set forth above provided that the  Recipient meets the Retirement Conditions set forth in section 5 of  the Agreement.  Upon vesting (other than upon death or Disability), the applicable  amount of cash, subject to required tax withholding, shall be paid  by the Company to the Recipient within thirty (30) days of the  vesting date, unless the Recipient had elected to defer such RSUs  into the DDP, in which case the applicable amount of cash shall be  paid to the DDP on the vesting date and paid out according to the  provisions of the DDP.  Vesting is accelerated to 100% upon the Recipient’s death or  cessation of employment by reason of Disability while an Eligible  Person (or, only in the case of death, while treated as an Eligible  Person following Retirement as described above) during the  Vesting Period.  Upon vesting, the applicable amount of cash,  subject to required tax withholding, shall be paid by the Company  to the Recipient’s designated beneficiary, legal representatives,  heirs, or legatees, as applicable, in accordance with the terms of the  Plan and this Agreement.  The Recipient can name a beneficiary on  a form approved by the Committee.  Vesting is accelerated to 100% upon the Recipient’s Involuntary  Termination or Voluntary Termination with Cause occurring on or  





 






  3  after a Change of Control that occurs during the Vesting Period.   With respect to a Recipient who continues to vest following his or  her termination due to Retirement, vesting is accelerated to 100%  upon a Change of Control that occurs during the Vesting Period  and on or after such termination by reason of Retirement.  With  respect to a Recipient who terminates employment by reason of  Retirement after a Change of Control, vesting is accelerated to  100% upon the Recipient’s termination of employment by reason  of Retirement.  Unless expressly otherwise provided in the  Agreement with respect to Retirement and Change of Control, the  applicable amount of cash, subject to required tax withholding,  shall be paid by the Company to the Recipient within thirty (30)  days of the vesting date, unless the Recipient had elected to defer  such RSUs into the DDP, in which case the applicable amount of  cash shall be paid to the DDP on the vesting date and paid out  according to the provisions of the DDP.    Withholding: The Company and the Recipient will comply with all federal and  state laws and regulations respecting the required withholding,  deposit, and payment of any income, employment, or other taxes  relating to the Grant.  Dividends: The Company will credit each of the Recipient’s RSUs with  Dividend Equivalents.  For purposes of this Grant, a Dividend  Equivalent is an amount equal to the cash dividend payable per  share of Stock multiplied by the number of shares of Stock then  underlying such outstanding RSUs.  Such amount will be credited  to a book entry account on Recipient’s behalf at the time the  Company pays any cash dividend on its Stock.  The Recipient’s  rights in any such Dividend Equivalents will vest at the same time  as, and only to the extent that, the underlying RSUs vest and will  be distributed at the same time in cash (subject to applicable  withholdings), and only to the extent, as the related RSUs are to be  distributed to the Recipient as provided in the Agreement and to  which such Dividend Equivalents apply.  Acceptance:  Please complete the on-line grant acceptance as promptly as  possible to accept or reject your Grant.  You can access this  through your account at netbenefits.fidelity.com.  By accepting  your Grant, you will have agreed to the terms and conditions set  forth in the Agreement, including, but not limited to, the non- compete and non-disparagement provisions set forth in sections 5  and 6 of the Agreement, and the terms and conditions of the Plan.   If you do not accept your Grant, your RSUs will not vest and you  will be unable to receive your RSUs.  





 






  4  APA Corporation  Restricted Stock Unit Award Agreement  This Restricted Stock Unit Award Agreement (the “Agreement”) relating to a grant of  Restricted Stock Units (as defined in the definition section of the APA Corporation 2016  Omnibus Compensation Plan (the “Plan”)) (the “Grant”), dated as of the Grant Date set forth in  the Notice of Award under the Agreement attached as Schedule A hereto (the “Grant Notice”), is  made between APA Corporation (together with its Affiliates, the “Company”) and each  Recipient. The Grant Notice is included in and made part of this Agreement.  In this Agreement and each Grant Notice, unless the context otherwise requires, words  and expressions shall have the meanings given to them in the Plan except as herein defined.  Definitions  “409A Change of Control” means a Change of Control that constitutes, with respect to  APA Corporation, a “change in the ownership or effective control of the corporation, or in the  ownership of a substantial portion of the assets of the corporation” within the meaning of Section  409A(a)(2)(A)(v) of the Internal Revenue Code of 1986, as amended (the “Code”) and Treasury  Regulations Section 1.409A-3(i)(5).  “Disability” or “Disabled” means the Recipient is unable to engage in any substantial  gainful activity by reason of any medically determinable physical or mental impairment which  can be expected to result in death or which has lasted or can be expected to last for a continuous  period of not less than 12 months. Recipient agrees that a final and binding determination of  “Disability” will be made by the Company’s representative under the Company’s group long- term disability plan or any successor thereto or, if there is no such representative and there is a  dispute as to the determination of “Disability,” it will be decided in a court of law in Harris  County, Texas.  “Grant Notice” means the separate notice given to each Recipient specifying the number  of RSUs granted to the Recipient (the “Grant”).  “Fair Market Value” means the fair market value of a share of the Stock as determined by  the Committee by the reasonable application of such reasonable valuation method, consistently  applied, as the Committee deems appropriate; provided, however, that if the Committee has not  made such determination, such fair market value shall be the per share closing price of the Stock  as reported on Nasdaq or on such other exchange or electronic trading system as, on the date in  question, reports the largest number of traded shares of stock; provided further, however, that if  there are no Stock transactions on such date, the Fair Market Value shall be determined as of the  immediately preceding date on which there were Stock transactions.  “Involuntary Termination” means the termination of employment of the Recipient by the  Company or its successor or an applicable Affiliate for any reason on or after a Change of  Control; provided, that the termination does not result from an act of the Recipient that (i)  constitutes common-law fraud, a felony, or a gross malfeasance of duty and (ii) is materially  detrimental to the best interests of the Company or its successor; provided that, notwithstanding  





 






  5  anything else in this Agreement to the contrary, an Involuntary Termination shall not be deemed  to occur solely because a Recipient transfers employment from the Company to an Affiliate,  from an Affiliate to the Company, or from one Affiliate to another Affiliate.  “Payout Amount” means the vested portion of the Grant expressed as an amount of cash  equal to the Fair Market Value of the shares of Stock underlying the RSUs and related Dividend  Equivalents.  “Recipient” means an Eligible Person designated by the Committee at the Grant Date to  receive one or more Grants under the Plan.  “Retirement” means, with respect to a Recipient and for purposes of this Agreement, the  date the Recipient terminates employment with the Company after attaining (i) age 55 and (ii) a  certain combination of age and Years of Service set forth in the Matrix in Exhibit “A” attached  hereto.  “Years of Service” means the total number of months from the Recipient’s date of hire by  the Company to the date of termination of employment, plus any months required to be  recognized under an appropriate acquisition agreement, divided by 12.  “Voluntary Termination with Cause” occurs upon a Recipient’s separation from service  of his or her own volition and one or more of the following conditions occurs without the  Recipient’s consent on or after a Change of Control:  (a) There is a material diminution in the Recipient’s base compensation,  compared to his or her rate of base compensation on the date of the  Change of Control.  (b) There is a material diminution in the Recipient’s authority, duties or  responsibilities.  (c) There is a material diminution in the authority, duties or responsibilities of  the Recipient’s supervisor, such as a requirement that the Recipient (or his  or her supervisor) report to a corporate officer or employee instead of  reporting directly to the board of directors.  (d) There is a material diminution in the budget over which the Recipient  retains authority.  (e) There is a material change in the geographic location at which the  Recipient must perform his or her service, including, for example the  assignment of the Recipient to a regular workplace that is more than 50  miles from his or her regular workplace on the date of the Change of  Control.  The Recipient must notify the Company of the existence of one or more adverse  conditions specified in clauses (a) through (e) above within 90 days of the initial  existence of the adverse condition.  The notice must be provided in writing to the  





 






  6  Company or its successor, attention: Vice President, Human Resources.  The notice may  be provided by personal delivery or it may be sent by email, inter-office mail, regular  mail (whether or not certified), fax, or any similar method.  The Company’s Vice  President, Human Resources, or his/her delegate shall acknowledge receipt of the notice  within 5 business days; the acknowledgement shall be sent to the Recipient by certified  mail.  Notwithstanding the foregoing provisions of this definition, if the Company  remedies the adverse condition within 30 days of being notified of the adverse condition,  no Voluntary Termination with Cause shall occur.  Terms  1. Grant of RSUs.  Subject to the provisions of this Agreement and the provisions of  the Plan and Grant Notice, the Company shall grant to the Recipient, pursuant to the Plan, a right  to receive the number of RSUs set forth in the Recipient’s Grant Notice.  The Grant shall give  the Recipient the right, upon vesting, to receive an amount in cash equal to the Fair Market  Value of an equal number of shares of $0.625 par value common stock of the Company  (“Stock”) to that of the number of RSUs set forth in the Recipient’s Grant Notice.  At the time of  the Grant, the Recipient may elect to defer all or any portion of the RSUs in the Deferred  Delivery Plan (the “DDP”).  2. Vesting and Payment of Cash.  Subject to the provisions of sections 3 and 4 of  this Agreement, the entitlement to receive an amount of cash equal to the Fair Market Value of  the number of shares of Stock pursuant to the RSUs comprising the Grant Amount shall vest in  accordance with the schedule set forth in the Grant Notice (the “Vesting Period”); provided that  the Recipient remains employed as an Eligible Person on such applicable vesting dates.  Unless  the Recipient elected to defer the RSU into the DDP, such cash, subject to applicable  withholding, shall be paid by the Company to the Recipient within thirty (30) days of the vesting  date (other than upon death or Disability).  To the extent that the Recipient elected to defer the  RSUs into the DDP and sections 3 and 4 do not apply, when the RSUs vest, an amount of cash  equal to the Fair Market Value of the number of shares of Stock that have vested pursuant to the  RSUs comprising the Grant Amount shall be paid to the DDP and paid thereafter to the Recipient  as specified under the terms of the DDP.  3. Termination of Employment, Retirement, Death, or Disability.  Except as set forth  below in this section 3 and in section 4 of this Agreement, each Grant shall be subject to the  condition that the Recipient has remained an Eligible Person from the award of the Grant of  RSUs until the applicable vesting date as follows:  (a) If the Recipient voluntarily leaves the employment of the Company (other than  for reason of Retirement), or if the employment of the Recipient is terminated by the Company  for any reason or no reason, any RSUs granted to the Recipient pursuant to the Grant Notice not  previously vested shall thereafter be void and forfeited for all purposes.  (b) If the Recipient leaves the employment of the Company by reason of Retirement,  the RSUs granted to the Recipient pursuant to the Grant Notice not previously vested shall  continue to vest following the Recipient’s termination of employment by reason of Retirement as  if the Recipient remained an Eligible Person in the employ of the Company, provided that such  





 






  7  Recipient shall be entitled to continue vesting only if such Recipient satisfies the Retirement  Conditions set forth in section 5 below (except in the case of death) and only with respect to the  specified percentage of such unvested RSUs set forth in Exhibit “A” for a certain combination of  age and Years of Service attained by the Recipient as of the Recipient’s Retirement under the  Matrix set forth in Exhibit “A”.  (c) A Recipient shall become 100% vested in all RSUs under the Grant Notice on the  date the Recipient dies while employed by the Company regardless whether Recipient has  accepted the Grant, or on the date the Recipient is no longer employed by the Company by  reason of Disability, or, only in the case of death, while continuing to vest pursuant to section  3(b) of this Agreement.  Payment shall be made as soon as administratively practicable, but in no  event (i) in the case of death, shall the payment occur later than the last day of the calendar year  following the calendar year in which such death occurs or (ii) in the case of cessation of  employment by reason of Disability, shall the payment occur later than thirty (30) days following  the date the Recipient is determined to be Disabled and is no longer employed by the  Company.  If clause (ii) is applicable and the period from the date on which the Recipient is  determined to be Disabled and is no longer employed by the Company to the date under clause  (ii) spans two consecutive calendar years, payment shall be made in the second calendar year of  such consecutive calendar years.  Such payment shall be made to the Recipient’s designated  beneficiary, legal representatives, heirs, or legatees, as applicable.  Each Recipient may designate  a beneficiary on a form approved by the Committee.  4. Change of Control.  Pursuant to Section 13.1(c)(iii) and (d) of the Plan, the  following provisions of this section 4 of the Agreement shall supersede Sections 13.1(a), (b) and  (c) of the Plan.  Without any further action by the Committee or the Board, in the event of a  Recipient’s Involuntary Termination or Voluntary Termination with Cause occurring on or after  a Change of Control during the Vesting Period, the Recipient shall become 100% fully vested in  the unvested RSUs granted to the Recipient pursuant to the Grant Notice as of the date of his or  her Involuntary Termination or Voluntary Termination with Cause. Subject to section 11(b) of  this Agreement, payment shall occur within thirty (30) days following the date of such  Involuntary Termination or Voluntary Termination with Cause, subject to required tax  withholding. Further, in the event of a Change of Control following the Recipient’s termination  of employment by reason of Retirement while the Recipient is continuing to vest in the RSUs  pursuant to section 3(b) of this Agreement, the Recipient shall become 100% fully vested in the  unvested RSUs granted to the Recipient pursuant to the Grant Notice as of the date of the  Change of Control (including those excluded by the specified percentage set forth in Exhibit  “A”). Subject to section 11(b) of this Agreement, the Recipient, if the Recipient terminates  employment on account of Retirement prior to the occurrence of a Change of Control, shall  receive payment with respect to 100% of the fully vested RSUs within thirty (30) days of the  date of a 409A Change of Control, or if the Change of Control is not a 409A Change of Control,  on the remaining vesting dates during the Vesting Period in the amount of 1/3 (on each of the  remaining vesting dates) of the RSUs awarded as of the Grant Date, subject to required tax  withholding.  Further still, in the event of a Change of Control prior to the Recipient’s  termination of employment by reason of Retirement during the Vesting Period, the Recipient  shall become 100% fully vested in the unvested RSUs granted to the Recipient pursuant to the  Grant Notice as of the date the Recipient terminates employment by reason of Retirement  (including those excluded by the specified percentage set forth in Exhibit “A”).  For the purpose  





 






  8  of vesting as set forth in the prior sentence, a Recipient’s Involuntary Termination or Voluntary  Termination with Cause after a Change of Control shall be deemed a termination by reason of  Retirement.  Subject to section 11(b) of this Agreement, the Recipient, who terminates  employment by reason of Retirement after a Change of Control, shall receive payment with  respect to 100% of the fully vested RSUs on the remaining vesting dates during the Vesting  Period in the amount of 1/3 (on each of the remaining vesting dates) of the RSUs awarded as of  the Grant Date, subject to required tax withholding.  5. Conditions to Post-Retirement Vesting.  If the Recipient has attained age 55 and a  certain combination of age and Years of Service set forth in the Matrix in Exhibit “A” attached  hereto and terminates employment with the Company and the Affiliates by reason of Retirement,  it is agreed by the Company and the Recipient that:  (a) subject to the provisions of this section 5(a) and sections 5(b) and 5(c), such  Recipient shall continue to vest in the specified percentage of unvested RSUs set forth in Exhibit  “A”, for the combination of age and Years of Service attained by such Recipient as of his or her  Retirement under the Matrix set forth in Exhibit “A”, following the date of his or her termination  by reason of Retirement as if the Recipient continued in employment as an Eligible Person  provided that the Grant Date of the unvested RSUs is prior to such termination date in an amount  of time which allows the Recipient to provide the written notice as follows and the Recipient has  provided advance written notice not before three (3) months following the Grant Date and not  less than the number of months prior to such termination date as set forth in the Schedule below  to APA Corporation’s Vice President, Human Resources, or his or her delegate, and to his or her  direct manager, regarding the Recipient’s intent to terminate employment for reason of  Retirement; provided, however, a Recipient who is at least age 55 and attained the necessary  combination of age and Years of Service under the Matrix set forth in Exhibit “A” for  Retirement need not provide such advance written notice of his or her intent to terminate  employment by reason of Retirement if the Company elects to require such Recipient to, or (as  part of a reduction in force or otherwise in writing in exchange for a written release) offers such  Recipient the opportunity to, terminate employment with the Company by reason of Retirement:   Age  Advance Written Notice  65 or older  3 months  between (and including) 55 and 64  6 months    ; and it is further agreed that  (b) in consideration for the continued vesting treatment afforded to the Recipient  under section 5(a), Recipient shall, during the continuing Vesting Period after Retirement (the  “Continued Vesting Period”), refrain from becoming employed by, or consulting with, or  becoming substantially involved in the business of, any business that competes with the  Company or its Affiliate in the business of exploration or production of oil or natural gas  wherever from time to time conducted throughout the world (a “Competitive Business”) and  Recipient shall provide to the Company, upon Company’s request, (x) a written certification, in a  form provided by or satisfactory to the Company, as to Recipient’s compliance with the forgoing  conditions and/or (y) his/her U.S. Individual Income Tax Return for any return filed by the  





 






  9  Recipient which relates to any time during the Continued Vesting Period to allow the Company  to verify that Recipient has complied with the foregoing conditions; provided, that the Recipient  may purchase and hold for investment purposes less than five percent (5%) of the shares of any  Competitive Business whose shares are regularly traded on a national securities exchange or  inter-dealer quotation system, and provided further, that the Recipient may provide services  solely as a director of any Competitive Business whose shares are regularly traded on a national  securities exchange or inter-dealer quotation system if, during the Continued Vesting Period, (i)  the Recipient only attends board and board committee meetings, votes on recommendations of  management, and discharges his/her fiduciary obligations under the law and (ii) the Recipient is  not involved in, and does not advise or consult on, the marketing, government relations,  customer relations, or the day-to-day management, supervision, or operations of such  Competitive Business; and it is further agreed that    (c) in consideration for the continued vesting treatment afforded to the Recipient  under section 5(a), Recipient shall, during the Continued Vesting Period, refrain from making, or  causing or assisting any other person to make, any oral or written communication to any third  party about the Company, any Affiliate and/or any of the employees, officers or directors of the  Company or any Affiliate which impugns or attacks, or is otherwise critical of, the reputation,  business or character of such entity or person; or that discloses private or confidential  information about their business affairs; or that constitutes an intrusion into their seclusion or  private lives; or that gives rise to unreasonable publicity about their private lives; or that places  them in a false light before the public; or that constitutes a misappropriation of their name or  likeness.    Notwithstanding the foregoing provisions of this section 5 of the Agreement, (i) in the event that  the Recipient fails to satisfy any of the conditions set forth in sections 5(a), (b) and (c) above, the  Recipient shall not be entitled to vest in any unvested RSUs after the date of Retirement and the  unvested RSUs subject to this Agreement shall be forfeited and (ii) the Recipient shall not have  any right to continue to vest upon Retirement in any future awards granted under the Plan once  the Recipient provides the notice of Retirement as set forth in section 5(a) above.   6. Prohibited Activity.  In consideration for this Grant and except as permitted under  section 5(b) above, the Recipient agrees not to engage in any “Prohibited Activity” while  employed by the Company or within three years after the date of the Recipient’s termination of  employment.  A “Prohibited Activity” will be deemed to have occurred, as determined by the  Committee in its sole and absolute discretion, if the Recipient (i) divulges any non-public,  confidential or proprietary information of the Company, but excluding information that (a)  becomes generally available to the public other than as a result of the Recipient’s public use,  disclosure, or fault, or (b) becomes available to the Recipient on a non-confidential basis after  the Recipient’s employment termination date from a source other than the Company prior to the  public use or disclosure by the Recipient, provided that such source is not bound by a  confidentiality agreement or otherwise prohibited from transmitting the information by  contractual, legal or fiduciary obligation; (ii) directly or indirectly, consults with or becomes  affiliated with, participate or engage in, or becomes employed by any business that is  competitive with the Company, wherever from time to time conducted throughout the world,  including situations where the Recipient solicits or participates in or assists in any way in the  solicitation or recruitment, directly or indirectly, of any employees of the Company; or (iii)  





 






  10  engages in publishing any oral or written statements about the Company, and/or any of its  directors, officers, or employees that are disparaging, slanderous, libelous, or defamatory; or that  disclose private or confidential information about their business affairs; or that constitute an  intrusion into their seclusion or private lives; or that give rise to unreasonable publicity about  their private lives; or that place them in a false light before the public; or that constitute a  misappropriation of their name or likeness.    7. Payment and Tax Withholding.  Upon receipt of any entitlement to cash under  this Agreement and, if applicable, upon the Recipient’s attainment of eligibility to terminate  employment by reason of Retirement pursuant to section 3(b), the Recipient shall make  appropriate arrangements with the Company to provide for the amount of minimum tax and  social security withholding, if any, required by law, including without limitation Sections 3102  and 3402 or any successor section(s) of the Internal Revenue Code and applicable state and local  income and other tax laws.  The payment of a Payout Amount shall be based on the Fair Market  Value of the shares of Stock on the applicable date of vesting to which such tax withholding  relates.  Where appropriate, cash shall be withheld by the Company to satisfy applicable tax  withholding requirements rather than paid directly to the Recipient.  8. Non-Transferability of Grant.  A Grant shall not be transferable otherwise than by  testamentary will or the laws of descent and distribution, or in accordance with a valid  beneficiary designation on a form approved by the Committee, subject to the conditions and  exceptions set forth in Section 15.2 of the Plan.  9. No Right to Continued Employment.  Neither the RSUs or the cash payment  pursuant to a Grant nor any terms contained in this Agreement shall confer upon the Recipient  any express or implied right to be retained in the employment or service of the Company for any  period, nor restrict in any way the right of the Company, which right is hereby expressly  reserved, to terminate the Recipient’s employment or service at any time for any reason or no  reason.  The Recipient acknowledges and agrees that any right to receive RSUs or cash pursuant  to a Grant is earned only by continuing as an employee of the Company at the will of the  Company, or satisfaction of any other applicable terms and conditions contained in the Plan and  this Agreement, and not through the act of being hired, being granted the Grant, or acquiring  RSUs or cash pursuant to the Grant hereunder.  10. The Plan.  In consideration for this Grant, the Recipient agrees to comply with the  terms of the Plan and this Agreement.  This Agreement is subject to all the terms, provisions and  conditions of the Plan, which are incorporated herein by reference, and to such regulations as  may from time to time be adopted by the Committee.  The Grant is a Cash-Based Award under  Section 10 of the Plan and is subject to the provisions of the Plan governing RSUs.  Unless  defined herein, capitalized terms are used herein as defined in the Plan.  In the event of any  conflict between the provisions of the Plan and this Agreement, the provisions of the Plan shall  control, and this Agreement shall be deemed to be modified accordingly.  The Plan and the  prospectus describing the Plan can be found on the Company’s HR intranet and the Plan  document can be found on Fidelity’s website (netbenefits.fidelity.com).  A paper copy of the  Plan and the prospectus shall be provided to the recipient upon the Recipient’s written request to  the Company at 2000 Post Oak Blvd., Suite 100, Houston, Texas 77056-4400, Attention:  Corporate Secretary.  





 






  11  11. Compliance with Laws and Regulations.  (a) The Grant and any obligation of the Company to deliver RSUs and cash  hereunder shall be subject in all respects to (i) all applicable laws, rules and regulations and (ii)  any registration, qualification, approvals or other requirements imposed by any government or  regulatory agency or body which the Committee shall, in its discretion, determine to be  necessary or applicable.  (b) This Grant is intended to comply with, or be exempt from, the applicable  requirements of Section 409A of the Code and the rules and regulations issued thereunder and  shall be administered accordingly.  Notwithstanding anything in this Agreement to the contrary,  if the RSUs constitute “deferred compensation” under Section 409A of the Code and any RSUs  become payable pursuant to the Recipient’s termination of employment, settlement of the RSUs  shall be delayed for a period of six months after the Recipient’s termination of employment if the  Recipient is a “specified employee” as defined under Code Section 409A(a)(2)(B)(i) and if  required pursuant to Section 409A of the Code.  If settlement of the RSU is delayed, the RSUs  shall be settled on the first day of the first calendar month following the end of the six-month  delay period.  If the Recipient dies during the six-month delay, the RSUs shall be settled and  paid to the Recipient’s designated beneficiary, legal representatives, heirs or legatees, as  applicable, as soon as practicable after the date of death.  Notwithstanding any provisions to the  contrary herein, payments made with respect to this Grant may only be made in a manner and  upon an event permitted by Section 409A of the Code, and all payments to be made upon a  termination of employment hereunder may only be made upon a “separation from service”, as  such term is defined in Section 11.1 of the Plan.  Recipient shall not have any right to determine  a date of payment of any amount under this Agreement. This Agreement may be amended  without the consent of the Recipient in any respect deemed by the Board or the Committee to be  necessary in order to preserve compliance with Section 409A of the Code. If the Grant and this  Agreement is subject to Section 409A of the Code and the rules and regulations issued  thereunder, then the vesting date shall be the “designated payment date” or “specified date”  under Treasury Regulation 1.409A-3(d).  12. Notices.  Unless otherwise provided in this Agreement, all notices by the  Recipient or the Recipient’s assignees shall be addressed to the Administrative Agent, Fidelity,  through the Recipient’s account at netbenefits.fidelity.com, or such other address as the  Company may from time to time specify.  All notices to the Recipient shall be addressed to the  Recipient at the Recipient’s address in the Company’s records.  13. Other Plans.  The Recipient acknowledges that any income derived from the  Grant shall not affect the Recipient’s participation in, or benefits under, any other benefit plan or  other contract or arrangement maintained by the Company or any Affiliate.  14. Terms of Employment.  The Plan is a discretionary plan.  The Recipient hereby  acknowledges that neither the Plan nor this Agreement forms part of the Recipient’s terms of  employment and nothing in the Plan may be construed as imposing on the Company or any  Affiliate a contractual obligation to offer participation in the Plan to any employee of the  Company or any Affiliate.  The Company or any Affiliate is under no obligation to make further  Grants to any Recipient under the Plan.  The Recipient hereby acknowledges that if the Recipient  





 






  12  ceases to be an employee of the Company or any Affiliate for any reason or no reason, the  Recipient shall not be entitled by way of compensation for loss of office or otherwise howsoever  to any sum.  15. Data Protection.  By accepting this Agreement (whether by electronic means or  otherwise), the Recipient hereby consents to the holding and processing of personal data  provided by the Recipient to the Company for all purposes necessary for the operation of the  Plan.  These include, but are not limited to:  (a) administering and maintaining Recipient records;  (b) providing information to any registrars, brokers or third party administrators of  the Plan; and  (c) providing information to future purchasers of the Company or the business in  which the Recipient works.    16. Severability.  If any provision of this Agreement is held invalid or unenforceable,  the remainder of this Agreement shall nevertheless remain in full force and effect, and if any  provision is held invalid or unenforceable with respect to particular circumstances, it shall  nevertheless remain in full force and effect in all other circumstances, to the fullest extent  permitted by law.  *****     





 






  13  Exhibit “A”