Document:

Form of Stock Option Agreement for Executive Officers (Form B).

 Exhibit 10.2 
  
 [STANDARD FORM OF OPTION AGREEMENT FOR EXECUTIVE OFFICERS 
 (FORM B)] 
  
 ALEXION
PHARMACEUTICALS, INC. 
 2004 INCENTIVE PLAN 
  
 STOCK OPTION AGREEMENT 
  
 AGREEMENT made as of this              day of
            , 200  , by and between Alexion Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and
             (the “Optionee”). 
  
 W I T N E S S E T H 
  
 WHEREAS, pursuant to the Alexion Pharmaceuticals, Inc. 2004 Incentive Plan (the “Plan”), the Company desires to grant to the Optionee, and the
Optionee desires to accept, an option to purchase shares of common stock, $.0001 par value, of the Company (the “Common Stock”) upon the terms and conditions set forth in this Agreement and the Plan. Capitalized terms used but not defined
herein shall have the meanings ascribed to such terms in the Plan. 
  
 NOW, THEREFORE, the parties hereto agree as follows: 
  
 1. Grant. The Company hereby grants to the Optionee an option to purchase              shares of Common Stock on the terms and conditions set forth herein
(“Option”). 
  
  

 This option to purchase shares of Common Stock is granted in connection with the services rendered by the
Optionee as an employee of the Company. This Option is intended to be treated as an option which [is] [is not] an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, to the extent permissible by law.

  
 2. Purchase Price. The purchase price of each share of
Common Stock subject to the Option (collectively, the “Option Shares”) shall be $            . The purchase price of the Option Shares shall be paid at the time of
exercise, as provided in paragraph 3 hereof. 
  
 3.
Exercise. Provided that the Optionee shall be in the employ or service (as an officer, director, consultant or other independent contractor or otherwise) by the Company or a subsidiary, the Option to purchase
             shares of Common Stock shall become exercisable, subject to acceleration of such vesting as herein provided and as provided in that certain Employment Agreement between
the Company and Optionee, in accordance with the following schedule: 
  

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	Event Relating to Vesting	  	Number of Options Vested
	 	  	 
	
	  	

  
 If the Optionee performs services for
the Company or a subsidiary in a capacity other than as a director or employee, then, for purposes hereof, those services will be deemed to be continuous until they are terminated, and they will be deemed to be terminated at the time provided
therefor in the consulting or other agreement governing the performance of such services or, if there is no such agreement, at the time the Company notifies the Optionee that it no longer contemplates the utilization of such services. The options
may be exercised in whole or in part by delivering to the Secretary of the Company (a) a written notice specifying the number of shares to be purchased, and (b) payment in full of the exercise price, together with the amount, if any, deemed
necessary by the Company to enable it to satisfy any income tax withholding obligations with respect to the exercise (unless other arrangements, acceptable to the Company, are made for the satisfaction of such withholding obligations), or by
delivering to the Secretary of the Company other shares of Common Stock of the Company. The exercise price shall be payable by bank or certified check, or by such other method as the Board of Directors may in its sole discretion, determine;
provided, however, that in lieu of the foregoing, the Optionee may exercise the Option, in whole or in part, by delivering to the Company shares of common stock of the Company (in proper form for 

  

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transfer and accompanied by all requisite stock transfer tax stamps or cash in lieu thereof) then owned by the Optionee for at least six months and having a
fair market value equal to the cash exercise price applicable to that portion of the Option being exercised by the delivery of such shares. The fair market value of the shares delivered as consideration for the exercise of such Option shall be
determined as of the date immediately preceding the date upon which the Option is exercised, or as may be required in order to comply with or to conform to the requirements of any applicable laws or regulations. Restricted stock (i.e., unregistered
securities) shall be valued as if it were not subject to restrictions on transfer or possibilities of forfeiture. If shares of restricted stock are utilized as consideration for the exercise of an Option, the number of shares issued upon the
exercise of such Option equal to the number of shares of restricted stock utilized as consideration therefore shall be subject to the same restrictions as the restricted stock so utilized. In addition, in lieu of payment of any such income tax
withholding obligations, the Optionee shall have the right to require the Company to retain and cancel a number of Option Shares out of the Option Shares being purchased having a fair market value equal to the amount of such income tax withholding
obligations (or so much thereof as shall not be paid by the Optionee in connection with such exercise). 
  
 4. Termination. The Option terminates at midnight on              and may not be
exercised under any circumstances thereafter. 
  
  

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 5. Riqhts as Stockholder. No shares of Common Stock shall be sold or delivered hereunder until
full payment for such shares has been made. The Optionee shall have no rights as a stockholder with respect to any Option Shares until a stock certificate for such shares is issued to him or her. Except as otherwise provided herein, no adjustment
shall be made for dividends or distributions of other rights for which the record date is prior to the date such stock certificate is issued. 
  
 6. Nontransferability. This Option is not assignable or transferable except by will and/or the laws of descent and distribution, and is exercisable
during the Optionee’s lifetime only by the Optionee. If the Optionee shall die, his estate, personal representative, or beneficiary shall have the right, subject to the provisions of paragraph 4, to exercise the Option at any time during the
remainder of the term of the Option. Notwithstanding the foregoing provisions of this Section 6, the Optionee may transfer all or a portion of the Option to: (i) any of the Optionee’s “family members” (as defined in General
Instruction A to Form S-8 under the Securities Act of 1933, as amended)(“Family Members”); (ii) a trust or trusts in which the Family Members have more than fifty percent (50%) of the beneficial interest; (iii) a foundation or foundations
in which the Family Members and/or the Optionee control the management of assets; (iv) any other entity or entities in which the Family Members and/or the Optionee own more than fifty percent (50%) of the voting interests; or (v) subject to the
Optionee’s and the proposed transferee’s satisfaction of such terms and conditions 

  

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as the Committee, in its sole discretion, any transferee or transferees approved by the Committee in writing prior to such transfer. At least thirty (30)
days prior to transferring any part of this Option, the Optionee shall provide the Company with a written notice of transfer stating the proposed transferee’s name, address and relationship to the Optionee and the amount and form of
consideration, if any, to be received by the Optionee pursuant to the proposed transfer and such other information the Company may require in order to evaluate the proposed transfer, including, if applicable, such evidence that the Company deems
necessary to establish that the transferee is a Family Member of the Optionee. A transferee of this Option shall take and hold this Option subject to the terms and conditions of this Agreement and the Plan. The Optionee hereby acknowledges that, in
the event the Optionee transfers this Option in whole or in part, the Optionee shall remain responsible for the satisfaction of any tax withholding obligations relating to the transfer or exercise of this Option and, further acknowledges that, the
transferee’s right to exercise any part of this Option shall be subject to, and conditioned upon, the Optionee’s satisfaction of any such withholding obligations. 
  
 7. Securities Restrictions. If the shares to be issued upon an exercise of the option are not registered under the
Securities Act of 1933, then, as a further condition of the Company’s obligation to issue such shares, the Optionee may be required to give a representation in writing that the Optionee is acquiring the shares for his own account as an
investment and not 

  

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with a view to, or for sale in connection with, the distribution of such shares, and the certificates representing such shares shall bear a legend to such
effect as the Company’s counsel shall deem necessary or desirable. The Option shall in no event be exercisable and shares shall not be issued hereunder if, in the opinion of counsel to the Company, such exercise and/or issuance would result in
a violation of federal or state securities laws. 
  
 8. Capital
Changes, Reorganizations, etc. 
  
 (a) In case of any split-up
or consolidation of shares or any like capital adjustment, or the payment of a stock dividend which increases or decreases the number of outstanding shares of Common Stock, appropriate adjustment shall be made to the number of shares and the
exercise price per share which may still be purchased under this Agreement. 
  
 (b) In case of any capital reorganization or reclassification of the Common Stock of the Company, or in case of any consolidation or merger of the Company with or into any other corporation, or in case of any sale to
another corporation of the properties and assets of the Company as or substantially as an entirety, then, and in each such case, the Optionee shall have the right to receive upon the exercise hereof, at any time after the consummation of such
reorganization, reclassification, consolidation, merger or sale, the kind and amount of shares of stock or other securities or property receivable upon such reorganization, reclassification, consolidation, merger or sale by a holder of the number of
shares of Common Stock issuable upon exercise of 

  

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this Option immediately prior to such reorganization, reclassification, consolidation, merger or sale; and in any such case, if necessary, the provisions set
forth herein with respect to the rights and interests thereafter of the Optionee hereunder shall be appropriately adjusted so as to be applicable, as nearly as may reasonably be, to any shares of stock or other securities or property thereafter
receivable upon the exercise of this Option. The above provisions of this paragraph 8 shall similarly apply to successive reclassification and changes of the Common Stock and to successive consolidations, mergers, sales or conveyances. 

 
 (c) In case the Company shall pay any stock dividend or make any
distribution other than a cash dividend to the holders of the Common Stock, or shall offer for subscription to the holders of the Common Stock any additional shares of Common Stock or any stock of any class of the Company or any other securities, or
in the case of any capital reorganization or reclassification of the capital stock of the Company or a consolidation or merger of the Company with another corporation, or the final dissolution, liquidation or winding up of the Company, or a sale of
all or substantially all its assets (whether voluntary or involuntary); then in any one or more of said cases, the Company shall mail to the Optionee at the address of the Optionee on the records of the Company, at least ten days’ prior notice
of the date on which the books of the Company shall close (or a record shall be taken) for such stock dividend, distribution or subscription rights, or such reorganization, 

  

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reclassification, consolidation, merger, dissolution, liquidation, winding up or sale shall take place, as the case may be. Such notice shall also specify
the date as of which shareholders of record shall be entitled to participate in such dividend, distribution or subscription rights or to exchange their shares of Common Stock for other securities or property pursuant to such reorganization,
reclassification, consolidation or merger, or to receive their respective distributive shares in the event of such dissolution, liquidation, winding up or sale, as the case may be. Such notice shall also set forth a statement of the effect of such
action (to the extent then known) on the exercise price and the kind and amount of shares of capital stock and property receivable upon exercise of this Option. 
  

(d) Upon a merger (other than a merger of the Company in which the holders of Common Stock immediately prior to the merger have the same proportionate
ownership of common stock in the surviving corporation immediately after the merger), consolidation, sale of property or stock, separation, reorganization (other than a mere reincorporation or the creation of a holding company) or liquidation of the
Company, as a result of which the stockholders of the Company receive cash, stock or other property in exchange for or in connection with their shares of Common Stock, the Optionee will be permitted to exercise all of his outstanding Options,
whether or not otherwise exercisable and notwithstanding any waiting period otherwise prescribed. Notwithstanding the preceding sentence, if, as part of any such exchange transaction, the shareholders of the Company receive 

  

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capital stock or rights to acquire capital stock of another corporation (or any securities convertible into or exchangable for capital stock of another
corporation), the Board of Directors of the Company, or the Board of Directors of any corporation assuming the obligations of the Company hereunder, shall either (i) make appropriate provisions for the protection of this Option by the substitution
on an equitable basis of appropriate stock of the Company, or appropriate stock of the merged, consolidated, or otherwise reorganized corporation, provided only that such substitution of options complies with any applicable requirements of the
Internal Revenue Code of 1986 as amended (the “Code”), or (ii) give written notice to the Optionee at least ten (10) days prior to the later of (1) the date on which such merger, consolidation or acquisition of assets or stock is expected
to become effective or (2) the date as of which a record will be taken to determine the holders of shares who shall be entitled to exchange shares for securities or other property deliverable upon such merger, consolidation or acquisition of assets
or stock, that this Option, which will become immediately exercisable whether or not otherwise exercisable and notwithstanding any waiting period otherwise prescribed, must be exercised (subject to consummation of such transaction) within 60 days of
the date of such notice or this Option will be terminated. In such event, the Optionee shall receive, with respect to each share subject to this Option, an amount equal to the excess of the fair market value of the shares and other property in
connection with such transaction over the exercise price of such Option; payable in 

  

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cash, in one or more of the kinds of property payable in such transaction, or in a combination thereof, as the Board in its discretion shall determine. The
provisions contained in the preceding sentence shall be inapplicable to an option granted within six (6) months before the occurrence of a transaction described above if any class of any equity security of the Company (other than an exempted
security) is registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and if the Optionee is a director or officer of the Company or a beneficial owner of the Company who is described in
Section 16(a) of the Exchange Act, unless such holder dies or becomes disabled (within the meaning of Section 105(d) (4) of the Code) prior to the expiration of such six-month period. 
  
 (e) In the event of any adjustment in the number of shares covered by any option pursuant to the provisions hereof, any
fractional shares resulting from such adjustment will be disregarded and each such option will cover only the number of full shares resulting from the adjustment. 
  
 (f) All adjustments under this paragraph 8 shall be made by the Board, and its determination as to what adjustments shall be
made, and the extent thereof, shall be final, binding and conclusive. 
  
 9. Registration Rights. 
  
 If the Company grants
registration rights with respect to Common Stock to any person or entity superior to, or on terms more favorable than, those set forth herein, such 

  

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registration rights provisions shall be immediately incorporated into this Stock Option Agreement. If language incorporated herein contradicts any previously
existing provision under this Section 9, or any other section of this Stock Option Agreement, the new language so incorporated will take precedence and be deemed controlling. 
  
 If the Company shall determine to register any of its securities, either for its own account or the account of any other
security holder or holders, the Company will give to the Optionee written notice thereof and offer to include in such registration (and any related qualification under blue sky laws or other compliance), and in any underwriting involved therein, all
the shares of Common Stock (the “Option Shares”) issued upon the exercise of the Option specified in a written request or requests, made by the Optionee within five days after receipt of the written notice from the Company, except as set
forth below. Such written request may specify all or a part of any Optionee’s Option Shares. 
  
 If the registration of which the Company gives notice is for a registered public offering involving an underwriting, the Company shall so advise the
Optionee as a part of the written notice. In such event the right of the Optionee to registration shall be conditioned upon such holder’s participation in such underwriting and the inclusion of the Optionee’s Option Shares in the
underwriting to the extent provided herein. The Optionee, proposing to distribute his Option Shares through such underwriting, shall (together with the 

  

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Company and the other shareholders distributing their securities through such underwriting) enter into an underwriting agreement in customary form with the
representative of the underwriter or underwriters selected by the Company. Notwithstanding the foregoing, if the representative of the underwriters advises the Company that marketing factors require a limitation on the number of shares to be
underwritten, the representative may limit the number of Option Shares to be included in the registration and underwriting. The Company shall so advise the Optionee and the number of securities that are entitled to be included in the registration
and underwriting shall be allocated first to the Company for securities being sold for its own account, then to the Optionee, then to other shareholders exercising “piggy-back” registration rights pro rata in accordance with the number of
shares requested to be registered, and thereafter to directors, officers and other participating management personnel of the Company (except the Optionee with respect to the Option Shares). 
  
 The Optionee, to the extent that Option Shares are included in any
registration, shall furnish to the Company such information regarding the Optionee and the distribution proposed by the Optionee as the Company may reasonably request in writing and as shall be reasonably required, and shall otherwise cooperate with
the Company, in connection with any registration, qualification or compliance. 
  
 All registration expenses incurred in connection with any registration shall be borne by the Company, except to the extent otherwise required by applicable state “blue sky” 

  

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regulations, and except that all Selling Expenses (as defined below) shall be borne by the Optionee, pro rata on the basis of the number of Option Shares so
registered. The rights to cause the Company to register securities granted to the Optionee by the Company may not be transferred or assigned by the Optionee. 
  
 “Selling Expenses” shall mean all underwriting discounts and selling commissions applicable to the sale of Option Shares and all fees and
disbursements of counsel for the Optionee. 
  
 The Company will
indemnify the Optionee with respect to whom registration, qualification or compliance has been effected hereunder against all claims, losses, damages and liabilities (or actions, proceedings or settlements in respect thereof) arising out of or based
on any untrue statement (or alleged untrue statement) of a material fact contained in any prospectus, offering circular or other document (including any related registration statement, notification or the like) incident to any such registration,
qualification or compliance, or based on any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation by the Company of the Securities
Act or any rule or regulation thereunder applicable to the Company and relating to action or inaction required of the Company in connection with any such registration, qualification or compliance, and will reimburse the Optionee for any legal and
any other expenses reasonably incurred in connection with investigating and defending or 

  

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settling any such claim, loss, damage, liability or action, provided that the Company will not be liable in any such case to the extent that any such claim,
loss, damage, liability or expense arises out of or is based on any untrue statement or omission based upon written information furnished to the Company by the Optionee and stated to be specifically for use therein. 
  
 The Optionee will, if Option Shares held by him are included in the
securities as to which such registration, qualification or compliance is being effected, indemnify the Company, each of its directors and officers and each underwriter, if any, of the Company’s securities covered by such a registration
statement, each person who controls the Company or such underwriter within the meaning of the Securities Act and the rules and regulations thereunder, each other shareholder and each of their officers, directors and partners, and each person
controlling such other shareholder, against all claims, losses, damages and liabilities (or actions in respect thereof) arising out of or based on any untrue statement of a material fact contained in any such registration statement, prospectus,
offering circular or other document, or any omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company and such other shareholders, directors,
officers partners, persons, underwriters, control persons for any legal or any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability or action, in each case to the extent, but only
to the 

  

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extent, that such untrue statement or omission is made in such registration statement, prospectus, offering circular or other document in reliance upon and
in conformity with written information furnished to the Company by the Optionee which pertains to the Optionee and is stated to be specifically for use therein. 
  

Each party entitled to indemnification hereunder (the “Indemnified Party”) shall give notice to the party required to provide indemnification
(the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation
resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or any litigation resulting therefrom, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld),
and the Indemnified Party may participate in such defense at such party’s expense, and provided further that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations
hereunder. No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation. Each Indemnified Party shall furnish 

  

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such information regarding itself or the claim in question as an Indemnifying Party may reasonably request in writing and as shall be reasonably required in
connection with the defense of such claim and litigation resulting therefrom. 
  
 The Optionee will, if requested by the Company and an underwriter of securities of the Company, not sell or otherwise transfer or dispose of any securities of the Company held by him (other than Option Shares included
in the registration statement) during any period required by the underwriter following the effective date of a registration statement of the Company filed under the Securities Act. The Optionee will, if requested by the Company and the underwriter,
enter into an agreement in writing in a form satisfactory to the Company and such underwriter to the foregoing effect. The Company may impose stop-transfer instruction with respect to the securities subject to the foregoing restriction until the end
of said period. 
  
 10. Miscellaneous. 
  
 (a) This Agreement shall be binding upon and shall inure to the benefit of
the parties hereto and their respective successors and permitted assigns. 
  
 (b) This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware. This agreement constitutes the entire agreement between the parties with respect to the subject matter hereof
and may not be modified except by written instrument executed by the parties. 
  
  

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 IN WITNESS WHEREOF, this Agreement has been executed as of the date first above written. 
  
  

			
	ALEXION PHARMACEUTICALS, INC.
		
	BY:	 	  
	 	 	 Name:

	 	 	 Title:

		
	  	 	  
	 	 	OPTIONEE

  
  
  

 18Employment Agreement

 Exhibit 10.2(E) 
  
 UNOCAL EMPLOYMENT AGREEMENT 
  

This employment agreement (the “Agreement”) is made effective as of March 12, 2003 by and between Unocal Corporation, a Delaware corporation
(the “Company”) and Randolph L. Howard (“Employee”). 
  
 In consideration of the mutual promises and agreements set forth herein, the Company and Employee agree as follows: 
  
 1. Term. 
  
 1.1 The term of this Agreement (the “Term”) shall commence on March 12, 2003 and shall be for two (2) years, subject to earlier termination in
accordance with the provisions of Section 4 hereinbelow. If the Agreement has not been subject to early termination in accordance with the provisions of Section 4 hereinbelow, beginning on March 12, 2003 and on each day thereafter, the Term shall
automatically be extended for an additional day unless the Company notifies Employee in writing that it does not wish to further extend the Term. Notwithstanding the foregoing, this Agreement shall end automatically and without additional notice on
the date of the Company’s Annual Meeting of Shareholders that next follows the date of Employee’s sixty-fifth (65th) birthday. 
  
 2. Position and Title. 
  
 2.1 The Company on behalf of itself and its affiliates and subsidiaries hereby employs Employee as Vice President, International Energy Operations hereby
accepts such employment. 
  
 2.2 Employee shall devote
substantially all of his efforts on a full time basis to the business and affairs of the Company and shall not engage in any business or perform any services in any capacity whatsoever adverse to the interests of the Company. 
  
 2.3 Employee shall at all times faithfully, industriously, and to the best of
his ability, experience, and talents, perform all of the duties of his position. 

 3. Compensation. 
  
 3.1 As of the date of this Agreement, Employee’s annual base salary is
$340,608 Employee’s base salary and performance shall be reviewed periodically at intervals approved by the Management Development and Compensation Committee of the Board of Directors of the Company (the “Committee”), and
Employee’s base salary may be increased from time to time based on merit or such other consideration as the Committee may deem appropriate. 
  
 3.2 During the Term, Employee shall participate in all of the Company’s incentive plans, benefit plans and perquisites, and in any new or successor
incentive plans, benefit plans and perquisites, that are generally provided to executives of the Company with a level of responsibility and stature comparable to Employee. Performance goals, award opportunity, benefit levels, and administrative
guidelines for such plans shall be subject to review and approval by the Committee. 
  
 4. Termination of Employment. 
  
 4.1 During the Term, the Company may terminate Employee’s employment herein at any time for Cause or as a result of a material breach by Employee of
his obligations under this Agreement, provided however that, except in the case of conviction of a felony, the Company shall provide Employee with not less than sixty (60) days prior written notice describing the behavior or conduct which is alleged
by the Company to constitute Cause, and Employee shall be provided with reasonable opportunity to correct such behavior or conduct within the notice period. For purposes of this Agreement, Cause shall be defined as any or all of the following:

  

	 	(1)	Conduct or action by Employee which, in the opinion of a majority of the Board of Directors, is materially harmful to the Company; 

  

	 	(2)	Willful failure by Employee to follow an order of the Board, except in such case where the Employee believes in good faith that following such order would be materially detrimental
to the interests of the Company; 

  

	 	(3)	Employee’s conviction of a felony. 

  
 4.2 In the event that Employee’s employment is terminated by the Company for any reason other than those set forth in Paragraph 4.1 hereinabove, or,
(a) Employee’s annual base salary is reduced below the amount stated in Paragraph 3.1 hereinabove (unless such reduction is part of an across the board reduction affecting all Company executives with a comparable level of responsibility, title
or stature), or (b) Employee is removed from or denied 
  

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 participation in incentive plans, benefit plans, or perquisites generally provided by the Company to other executives
with a comparable level of responsibility, title or stature, or (c) Employee’s target incentive opportunity, benefits or perquisites are reduced relative to other executives with comparable responsibility, title or stature, or (d) Employee is
assigned duties or obligations inconsistent with his position with the Company or (e) There is a significant change in the nature and scope of Employee’s authority or his overall working environment, or (f) Employee’s work location
following a Change In Control would result in an increase in his or her one way commute by at least 50 miles from the existing residence, such event shall be considered a Termination Without Cause. 
  
 4.3 In the event of Employee’s Termination Without Cause at any time
during the Term of this Agreement, then: 
  

	 	(1)	The Company shall pay Employee a lump-sum severance amount within thirty (30) days following Termination Without Cause equal to two (2) times the sum of (a) the higher of the
Employee’s annual base salary at the time of Termination Without Cause or the annual base salary stated in Paragraph 3.1 hereinabove, and (b) the annual target Bonus applicable to Employee as of the beginning of the calendar year in which such
Termination Without Cause occurs. Such sum shall be reduced by the amount of any Unocal Employee Redeployment Program and Unocal Termination Allowance benefits payable to Employee; and further reduced by any Change of Control enhancements
(determined by the increase in the lump sum amounts payable to Employee) under the Unocal Retirement Plan and the non-qualified retirement plans of the Company. 

  

	 	(2)	The Company shall provide for Employee to receive medical, dental, life, and disability insurance coverage for two (2) years following Termination Without Cause at levels and a net
cost to Employee comparable to that provided to Employee immediately prior to Employee’s Termination Without Cause. In lieu of the foregoing continued benefits, the Company in its sole discretion may elect to pay the Employee the sum of $25,000
(twenty-five thousand U.S. Dollars). 

  

	 	(3)	The Company shall pay Employee an additional lump-sum severance amount within thirty (30) days following Employee’s Termination Without Cause equal to two (2) times the base
salary used to determine the lump-sum severance benefit in paragraph 4.3(1) hereinabove, multiplied by 6% (.06). 

  
 4.4 In the event that during the Term of this Agreement Employee should voluntarily resign from the Company, should terminate employment with the Company
due to death, permanent disability or incapacitation, or is 
  

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 terminated by the Company for Cause or for a material breach by Employee of his obligations under this Agreement, then
Employee shall not be entitled to any of the termination benefits provided for in Paragraph 4.3 hereinabove, and the Term of the Agreement shall immediately end. 
  
 4.5 Employee shall not be obligated to seek other employment or take any other action by way of mitigation of the amounts
payable to Employee under any provisions of this Agreement. 
  
 5. Change of Control. 
  
 5.1 In the event of a Change of Control of the Company at any time during the Term of this Agreement, then: 
  

	 	(1)	In the event of Employee’s Termination Without Cause within a period of twenty-four (24) months following the date of a Change of Control, Employee shall be entitled to the
termination benefits described in Paragraph 4.3 hereinabove plus the benefit described in Section 5.1(2) below. 

  

	 	(2)	The Employee shall be entitled to an amount equal to the increase in the lump sum value of Employee’s Unocal Retirement Plan and non-qualified retirement plans of the Company
if three years were added to Employee’s benefit service and age thereunder. Such amount shall be payable hereunder notwithstanding Section 4.3(1) above. 

  
 5.2 For the purpose of this Agreement, a “Change of Control” shall mean: 
  
 (a) The acquisition by any individual, entity or group (within the meaning
of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)(a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of
either (i) the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (a), the following acquisitions shall not constitute a Change of Control: (i) any acquisition directly from the
Company, (ii) any acquisition by the Company, (iii) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company or (iv) any acquisition by any corporation
pursuant to a transaction which complies with clauses (i), (ii) and (iii) of subsection (c) of this Section 5.2; or 
  

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 (b) Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a
vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

  
 (c) Consummation of a reorganization, merger or consolidation
or sale or other disposition of all or substantially all of the assets of the Company or the acquisition of assets of another corporation (a “Business Combination”), in each case, unless, following such Business Combination, (i) all or
substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be,
of the corporation resulting from such Business Combination (including, without limitation, a corporation which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one
or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (ii) no Person
(excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 20% or more
of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such
ownership existed prior to the Business Combination and (iii) at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution
of the initial agreement, or of the action of the Board, providing for such Business Combination; or 
  
 (d) Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company. 
  

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 5.3 Certain Additional Payments by the Company may be due as follows: 
  
 (a) Anything in this Agreement to the contrary notwithstanding and except as
set forth below, in the event it shall be determined that any payment or distribution by the Company or its affiliates to or for the benefit of the Employee (whether paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise but determined without regard to any additional payments required under this Section 5.3), (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties are
incurred by the Employee with respect to such excise tax (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then the Employee shall be entitled to receive an
additional payment (a “Gross-Up Payment”) in an amount such that after payment by the Employee of all taxes (including any interest or penalties imposed with respect to such taxes), including, without limitation, any income taxes (and any
interest and penalties imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, the Employee retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing provisions
of this Section 5.3, if it shall be determined that the Employee is entitled to a Gross-Up Payment, but that the Payments do not exceed 110% of the greatest amount (the “Reduced Amount”) that could be paid to the Employee such that the
receipt of Payments would not give rise to any Excise Tax, then no Gross-Up Payment shall be made to the Employee and the Payments, in the aggregate, shall be reduced to the Reduced Amount. 
  
 (b) Subject to the provisions of Section 5.3(c), all determinations required
to be made under this Section 5.3, including whether and when a Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be made by Ernst and Young or such other
certified public accounting firm as may be designated by the Employee (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company and the Employee within 15 business days of the receipt of notice from
the Employee that there has been a Payment, or such earlier time as is requested by the Company. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity or group effecting the Change of Control, the
Employee shall appoint another nationally recognized accounting firm to make the determinations required hereunder (which accounting firm shall then be referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall
be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section 5.3, shall be paid by the Company to the Employee within five days of the receipt of the Accounting Firm’s determination. Any determination by the
Accounting Firm shall be binding upon the Company and the Employee. As a result of the uncertainty in the application of Section 4999 of the Code at the time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should 
  

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 have been made (“Underpayment”), consistent with the calculations required to be made hereunder. In the event
that the Company exhausts its remedies pursuant to Section 5.3(c) and the Employee thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of the Employee. 
  
 (c) The Employee shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such notification shall be given
as soon as practicable but no later than ten business days after the Employee is informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid. The Employee shall
not pay such claim prior to the expiration of the 30-day period following the date on which it gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due). If the Company
notifies the Employee in writing prior to the expiration of such period that it desires to contest such claim, the Employee shall: 
  

	 	(i)	give the Company any information reasonably requested by the Company relating to such claim, 

  

	 	(ii)	take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by the Company, 

  

	 	(iii)	cooperate with the Company in good faith in order effectively to contest such claim, and 

  

	 	(iv)	permit the Company to participate in any proceedings relating to such claim; provided, however, that the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and shall indemnify and hold the Employee harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties with respect thereto) imposed
as a result of such representation and payment of costs and expenses. Without limitation on the foregoing provisions of this Section 5.3(c), the Company shall control all proceedings taken in connection with such contest and, at its sole option, may
pursue or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either direct the Employee to pay the tax claimed and sue for a refund or
contest the claim in any permissible manner, and the Employee agrees to prosecute such contest to a determination before any administrative 

  

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 tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Employee to pay such claim and sue for a refund, the Company shall advance the amount of such payment to the Employee, on an interest-free basis and shall indemnify and hold the Employee
harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to the such advance or with respect to any imputed income with respect to such advance; and further
provided that any extension of the statute of limitations relating to payment of taxes for the taxable year of the Employee with respect to which such contested amount is claimed to be due is limited solely to such contested amount. Furthermore, the
Company’s control of the contest shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and the Employee shall be entitled to settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority. 
  

	 	(d)	If, after the receipt by the Employee of an amount advanced by the Company pursuant to Section 5.3(c), the Employee becomes entitled to receive any refund with respect to such
claim, the Employee shall (subject to the Company’s employing with the requirements of Section 5.3 promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto). If,
after the receipt by the Employee of an amount advanced by the Company pursuant to Section 5.3(c), a determination is made that the Employee shall not be entitled to any refund with respect to such claim and the Company does not notify the Employee
in writing of its intent to contest such denial of refund prior to the expiration of 30 days after such determination, then such advance shall be forgiven and shall not be required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-Up Payment required to be paid. 

  
 6. Covenants. 
  
 6.1 Employee agrees that any and all confidential knowledge or information, including but not limited to customer lists, books, records, data, formulae,
specifications, inventions, processes and methods, and developments and improvements, which have been or may be obtained or learned by Employee in the course of his employment with the Company, will be held confidential by Employee, and that
Employee shall not disclose the same to any person outside of the Company either during his employment with the Company or after his employment by the Company has terminated. 
  

 - 8 - 

 6.2 Employee agrees that upon termination of his employment with the Company he will immediately
surrender and turn over to the Company all books, records, forms, specifications, formulae, data, and all papers and writings relating to the business of the Company and all other property belonging to the Company, it being understood and agreed
that the same are the sole property of the Company and that Employee shall not make or retain any copies thereof. 
  
 6.3 Employee agrees that all inventions, developments or improvements which he has made or may make, conceive, invent, discover or otherwise acquire
during his employment with the Company in the scope of his responsibilities or otherwise shall become the sole property of the Company. 
  
 6.4 Employee agrees to provide a release of any claims with respect to termination of his or her employment on such form as requested by the Company upon
payment of the sums provided in Section 4.3 above. 
  
 7. Miscellaneous Provisions. 
  
 7.1 All
terms and conditions of this Agreement are set forth herein, and there are no warranties, agreements or understandings, express or implied, except those expressly set forth herein. 
  
 7.2 Any modification to this Agreement shall be binding only if evidenced in writing signed by all parties hereto. This
Agreement replaces and supercedes that Unocal Employment Agreement between Company and Employee dated July 28, 1998 in its entirety. 
  
 7.3 Any notice or other communication required or permitted to be given hereunder shall be deemed properly given if personally delivered or deposited in
the United States mail, registered or certified and postage prepaid, addressed to the Company at 2141 Rosecrans Ave., Suite 4000, El Segundo, CA (Attention: General Counsel), or to Employee at his or her most recent home address on file with
Company, or at other such addresses as may from time to time be designated in writing by the respective parties. 
  
 7.4 The laws of the State of California shall govern the validity of this Agreement, the construction of its terms, and the interpretation of the rights
and duties of the parties involved. 
  
 7.5 In the event that any
one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable, the same shall not affect any other provision of this Agreement, but this Agreement shall be construed as if such
invalid, illegal or unenforceable provisions had never been contained herein. 
  

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 7.6 This Agreement shall be binding upon, and inure to the benefit of, the successors and assigns of the
Company and the personal representatives, heirs and legatees of Employee. 
  
 7.7 “Bonus” refers to the Unocal Incentive Compensation Plan and any replacement or successor plan thereof. 
  
 7.8 Company shall pay 90% (ninety percent) of Employee’s out-of-pocket litigation expenses, including reasonable attorney’s fees, in connection
with any judicial proceeding to enforce this Agreement or construe or determine the validity of this Agreement, whether or not the Employee is successful in such proceeding. 
  
 7.9 The term “Company” shall include with respect to employment hereunder, any subsidiary or affiliate of the
Company, as well as any successor employer following a Change in Control. 
  
 IN
WITNESS WHEREOF, the parties have executed this Agreement effective as of the date first above written. 
  

			
	 BY:
	 	 /s/ CHARLES R. WILLIAMSON

	 	 	Charles R. Williamson for the Management Development and Compensation Committee of the Unocal Board of Directors
		
	 BY:
	 	 /s/ RANDOLPH L. HOWARD

	 	 	 EMPLOYEE

  

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