Document:

Second Amendment to Office Lease

 Exhibit 10.18 
 SECOND AMENDMENT TO OFFICE LEASE 
 This SECOND
AMENDMENT TO OFFICE LEASE (this “Second Amendment”) is made and entered into as of the 19th day of November, 2010, by and between OAKLAND PROPERTY LLC, a Delaware limited liability company (“Landlord”), and BRIGHTSOURCE ENERGY, INC., a Delaware corporation
(“Tenant”). 
 R E C I T A L S : 

A. Landlord and Tenant entered into that certain Office Lease dated November 7, 2007 (the “Office
Lease”), as amended by that certain First Amendment to Office Lease dated May 24, 2010 (the “First Amendment”) (the Office Lease and First Amendment shall collectively be referred to herein as the
“Lease”), whereby Landlord leased to Tenant and Tenant leased from Landlord those certain premises (the “New Existing Premises”) consisting of (i) approximately 9,727 rentable square feet of space commonly
known as Suite 2150 and located on the twenty-first
(21st) floor of that certain office building located
at 1999 Harrison Street, Oakland, California (the “Building”), and (ii) approximately 5,096 rentable square feet of space commonly known as Suite 2125 and located on the twenty-first (21st) floor of the Building. 

B. Tenant desires to expand the New Existing Premises to include that certain space consisting of approximately 5,563
rentable square feet of space commonly known as Suite 2100 and located on the twenty-first (21st) floor of the Building (the “New Expansion Premises”), as delineated on Exhibit A attached hereto and made a part hereof, and to make other modifications to the Lease,
and in connection therewith, Landlord and Tenant desire to amend the Lease as hereinafter provided. 
 A G R
E E M E N T : 
 NOW, THEREFORE, in consideration of the foregoing recitals and the
mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

1. Capitalized Terms. All capitalized terms when used herein shall have the same meaning as is given such terms in the
Lease unless expressly superseded by the terms of this Second Amendment. 
 2. Modification of Premises. Effective
as of the date (the “New Expansion Commencement Date”) which is the later to occur of (i) January 1, 2011, and (ii) the date upon which the New Expansion Premises arc “Ready for Occupancy,” as that term is
defined in Section 5.1 of the Tenant Work Letter attached hereto as Exhibit B (the “Tenant Work Letter”), Tenant shall lease from Landlord and Landlord shall lease to Tenant the New Expansion Premises.
Consequently, effective upon the New Expansion Commencement Date, the New Existing Premises shall be increased to include the New Expansion Premises. Landlord 

  

					
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and Tenant hereby acknowledge that such addition of the New Expansion Premises to the New Existing Premises shall, effective as of the New Expansion Commencement Date, increase the rentable
square footage of the Premises to approximately 20,386. 
 3. Beneficial Occupancy. In the event the New
Expansion Premises are Ready for Occupancy prior to January 1, 2011, Tenant shall have the right to occupy the New Expansion Premises prior to January 1, 2011, provided that (A) Tenant shall give Landlord at least ten
(10) days’ prior notice of any such occupancy of the New Expansion Premises, (B) a temporary certificate of occupancy for the New Expansion Premises shall have been issued by the appropriate governmental authorities,
(C) certificates of insurance covering Tenant’s occupancy of the New Expansion Premises during such period shall be delivered to Landlord prior to such occupancy, and (D) all of the terms and conditions of the Lease, as amended
hereby, shall apply, other than Tenant’s obligation to pay Base Rent and Tenant’s Share of Building Direct Expenses with respect to the New Expansion Premises as though the New Expansion Commencement Date had occurred (although the New
Expansion Commencement Date shall not actually occur until the occurrence of the same pursuant to the terms of the first sentence of Section 2 above); provided, however, that Tenant shall be obligated to pay to Landlord all other
Additional Rent during such occupancy of the New Expansion Premises. 
 4. Condition of New Expansion Premises.
The taking of possession of the New Expansion Premises by Tenant shall establish that the New Expansion Premises were at such time in good order, condition and repair. Except as specifically set forth in the Tenant Work Letter, Landlord shall
not be obligated to provide or pay for any improvement work or services related to the improvement of the New Expansion Premises (other than Landlord’s repair and maintenance obligations expressly set forth in the Lease). Tenant acknowledges
that neither Landlord nor any agent of Landlord has made any representation or warranty regarding the condition of the New Expansion Premises or the Building or with respect to the suitability of the same for the conduct of Tenant’s business.

 5. New Expansion Term. Landlord and Tenant acknowledge that Tenant’s lease of the New Existing Premises is
scheduled to expire on June 30, 2014 (the “New Lease Expiration Date”), pursuant to the terms of the Lease. Notwithstanding anything to the contrary in the Lease, the term of Tenant’s lease of the New Expansion Premises
shall commence on the New Expansion Commencement Date and shall expire coterminously with Tenant’s lease of the New Existing Premises on the New Lease Expiration Date, unless sooner terminated as provided in the Lease, as hereby amended. The
period of time commencing on the New Expansion Commencement Date and terminating on the New Lease Expiration Date shall be referred to herein as the “New Expansion Term.” 

6. Base Rent. 
 6.1. New Existing Premises. Notwithstanding anything to the contrary in the Lease, as hereby amended, Tenant shall continue to pay Base Rent for the New Existing Premises in
accordance with the terms of the Lease. 
 6.2. New Expansion Premises. Commencing on the New
Expansion Commencement Date and continuing throughout the New Expansion Term, Tenant shall pay to 

  

					
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Landlord monthly installments of Base Rent for the New Expansion Premises as set forth below, and otherwise in accordance with the terms of the Lease. 

 

													
	 Period During New
Expansion Term
	  	Annual
Base Rent	 	  	Monthly Installment of
Base Rent	 	  	Approximate
Monthly
Rental Rate per
Rentable Square
Foot of the
New
Expansion Premises	 
	 New Expansion Commencement Date - June 30, 2011
	  	$	183,579.00	  	  	$	15,298.25	  	  	$	2.75	  
	 July 1, 2011 - June 30, 2012
	  	$	188,919.48	  	  	$	15,743.29	  	  	$	2.83	  
	 July 1, 2012 - June 30, 2013
	  	$	194,587.06	  	  	$	16,215.59	  	  	$	2.92	  
	 July 1, 2013 - June 30, 2014
	  	$	200,424.68	  	  	$	16,702.06	  	  	$	3.00	  

 Concurrent with
Tenant’s execution and delivery of this Second Amendment to Landlord, Tenant shall pay to Landlord the Base Rent payable for the New Expansion Premises for the first full month of the New Expansion Term. 

7. Tenant’s Share of Building Direct Expenses. 

7.1. New Existing Premises. In connection with the New Existing Premises, Tenant shall continue to
pay Tenant’s Share of Building Direct Expenses in accordance with the terms of the Lease. 
 7.2. New
Expansion Premises. Except as specifically set forth in this Section 7.2, commencing on the New Expansion Commencement Date, in connection with the New Expansion Premises, Tenant shall pay Tenant’s Share of Building Direct
Expenses which arise or accrue on or after the New Expansion Commencement Date in accordance with the terms of the Lease, provided that (i) Tenant’s Share in connection with the New Expansion Premises shall equal 1.1828%, and (ii) the
Base Year in connection with the Expansion Premises shall be the calendar year 2011. 
 8. Parking. Tenant shall
continue to have the parking rights set forth in Article 28 of the Office Lease (as amended by Section 7 of the First Amendment) during the New Expansion Term; provided, however, that effective as of the New Expansion Commencement
Date, Tenant shall have the right to rent from Landlord up to an additional five (5) unreserved parking passes in the Project parking facility. Tenant shall pay to Landlord for such unreserved parking passes the prevailing rate charged from
time to time at the location of such parking passes. In addition, Tenant shall be responsible for the full amount of any taxes imposed by any 

  

					
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governmental authority in connection with the renting of such parking passes by Tenant or the use of the Project parking facility by Tenant. 

9. Deletion. Landlord and Tenant hereby acknowledge and agree that, effective as of the date hereof,
Section 1.2 of the Office Lease and Section 8 of the First Amendment are both hereby deleted in their entirety and of no further force or effect. 
 10. Letter of Credit. The terms of Article 21 of the Office Lease shall continue to apply (including, without limitation, the terms of Section 21.6 of the Office Lease);
provided, however, Landlord and Tenant hereby acknowledge and agree that, effective as of the date hereof, the reduction schedule set forth in Section 21.6 of the Office Lease shall be restated in its entirety, as follows: 

 

					
	 Reduction Date
	  	Letter of Credit
Amount	 
	 Fourth (4th) Anniversary of Lease Commencement Date
	  	$	199,889.85	  
	 Fifth (5th) Anniversary of Lease Commencement Date
	  	$	156,604.70	  
	 Sixth (6th) Anniversary of Lease Commencement Date
	  	$	129,928.40	  

 11. Broker.
Landlord and Tenant hereby warrant to each other that they have had no dealings with any real estate broker or agent in connection with the negotiation of this Second Amendment other than Colliers International (the “Broker”),
and that they know of no other real estate broker or agent who is entitled to a commission in connection with this Second Amendment. Each party agrees to indemnify and defend the other party against and hold the other party harmless from any and all
claims, demands, losses, liabilities, lawsuits, judgments, and costs and expenses (including, without limitation, reasonable attorneys’ fees) with respect to any leasing commission or equivalent compensation alleged to be owing on account of
the indemnifying party’s dealings with any real estate broker or agent, other than the Broker, occurring by, through, or under the indemnifying party. The terms of this Section 11 shall survive the expiration or earlier termination
of the Lease, as amended. 
 [signatures appear on following page] 

  

					
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 12. 
 13. No Further Modification: Conflict. Except as specifically set forth in this Second Amendment, all of the terms and provisions of the Lease shall remain unmodified and in full
force and effect. In the event of any conflict between the terms and conditions of the Lease and the terms and conditions of this Second Amendment, the terms and conditions of this Second Amendment shall prevail. 

IN WITNESS WHEREOF, this Second Amendment has been executed as of the day and year first above written. 

 

															
	“LANDLORD”	 	“TENANT”
		
	OAKLAND PROPERTY LLC,	 	BRIGHTSOURCE ENERGY, INC.,
	a Delaware limited liability company	 	a Delaware corporation
					
	By:	 	BCSP IV U.S. Investments, L.P.,	 		 	By:	 	/s/ JF Jenkins-Stark
		 	a Delaware limited partnership	 		 		 	Name:	 	Jack Jenkins-Stark
		 	Its: Sole Member	 		 		 	Title: 	 	CFO
							
		 	By:	 	BCSP REIT IV, Inc.,	 		 		 		 	
		 		 	a Maryland corporation	 		 		 		 	
		 		 	Its: Sole General Partner	 		 		 		 	
								
		 		 	By:	 	/s/ Jeremy B. Fletcher	 		 		 	By:	 	/s/ John Woolard
		 		 		 	Name: Jeremy B. Fletcher	 		 		 		 	Name: John Woolard
		 		 		 	Title: Senior Managing	 		 		 		 	Title: CEO
		 		 		 	Director	 		 		 		 	

  

					
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 EXHIBIT A 

LAKE MERRITT PLAZA 
 OUTLINE OF NEW EXPANSION PREMISES 

 

 

  

  

					
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 EXHIBIT B 

LAKE MERRITT PLAZA 
 TENANT WORK LETTER 
 This Tenant Work Letter shall set forth the
terms and conditions relating to the construction of the tenant improvements in the New Expansion Premises, which New Expansion Premises shall be referred to herein as the “Premises”. This Tenant “Work Letter is essentially organized
chronologically and addresses the issues of the construction of the Premises (i.e., only the New Expansion Premises), in sequence, as such issues will arise during the actual construction of the Premises. All references in this Tenant Work Letter to
Sections of “this Amendment” shall mean the relevant portion of Sections 1 through 12 of the Second Amendment to which this Tenant Work Letter is attached as Exhibit B and of which this Tenant Work Letter forms a part, and all references
in this Tenant Work Letter to Sections of “this Tenant Work Letter” shall mean the relevant portions of Sections 1 through 6 of this Tenant Work Letter. 
 SECTION 1 
 CONSTRUCTION DRAWINGS FOR THE PREMISES

 Landlord shall construct the tenant improvements in the Premises (i.e., only the New Expansion Premises) (the
“Tenant Improvements”) pursuant to that certain space plan and pricing plan prepared by RMW Architecture & Interiors and dated November 8, 2010, a reduced copy of which is attached hereto as Schedule 1 (collectively, the
“Approved Space Plan and Pricing Plan”). Immediately following Tenant’s execution of this Amendment, Tenant shall cooperate in good faith with Landlord’s architects and engineers to supply such information necessary to allow the
Landlord’s architects and engineers to complete the architectural and engineering drawings for the Premises, and the final architectural working drawings in a form which is complete to allow subcontractors to bid on the work and to obtain all
applicable permits. Following the full execution and delivery of this Amendment by Landlord and Tenant, Landlord shall cause working drawings to be prepared for the Tenant Improvements, provided that such working drawings shall be consistent with,
and a logical extension of, the Approved Space Plan and Pricing Plan (the “Approved Working Drawings”). Notwithstanding any contrary provision of this Tenant Work Letter, the Tenant Improvements shall in any event be constructed using
Building standard methods, materials and finishes. Tenant shall make no changes or modifications to the (i) Approved Space Plan and Pricing Plan, (ii) the Tenant Improvements, or (iii) once completed, the Approved Working Drawings,
without the prior written consent of Landlord, which consent may be withheld in Landlord’s sole discretion if such change or modification would directly or indirectly delay the completion of the Tenant Improvements in the Premises or increase
the cost of designing or constructing the Tenant Improvements. 

  

					
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 SECTION 2 

OVER-ALLOWANCE AMOUNT 
 In the event that after Tenant’s execution of this Amendment, any revisions, changes, or substitutions shall be made to the Approved Space Plan and Pricing Plan, the Approved Working Drawings, or the
Tenant Improvements, then any additional costs which arise in connection with such revisions, changes or substitutions shall be paid by Tenant to Landlord immediately upon Landlord’s request as an over-allowance amount (the
“Over-Allowance Amount”). Landlord shall disburse the Over-Allowance Amount prior to the disbursement of any portion of Landlord’s contribution to the construction of the Tenant Improvements. 

SECTION 3 
 CONTRACTOR’S WARRANTIES AND GUARANTIES 
 Landlord hereby
assigns to Tenant all warranties and guaranties by the contractor who constructs the Tenant Improvements (the “Contractor”) relating to the Tenant Improvements, and Tenant hereby waives all claims against Landlord relating to, or arising
out of the construction of, the Tenant Improvements. 
 SECTION 4 

TENANT’S COVENANTS 
 Tenant hereby indemnifies Landlord for any loss, claims, damages or delays arising from the actions of Tenant’s space planner/architect on the Premises or in the Building. 

SECTION 5 
 SUBSTANTIAL COMPLETION OF THE TENANT IMPROVEMENTS: 
 NEW
EXPANSION COMMENCEMENT DATE 
 5.1 Ready for Occupancy. The Premises (i.e., only the New Expansion Premises)
shall be deemed “Ready for Occupancy” upon the Substantial Completion of the Premises (i.e., the New Expansion Premises). For purposes of this Amendment, “ Substantial Completion” of the Premises (i.e., the New Expansion
Premises) shall occur upon the completion of construction of the Tenant Improvements in the Premises pursuant to the Approved Working Drawings, with the exception of any punch list items and any tenant fixtures, work-stations, built-in furniture, or
equipment to be installed by Tenant or under the supervision of Contractor. 
 5.2 Delay of the Substantial Completion of the
Premises. Except as provided in this Section 5.2, the New Expansion Commencement Date shall occur as set forth in this Amendment and Section 5.1, above. If there shall be a delay or there are delays in the Substantial
Completion of the Premises (i.e., the New Expansion Premises) or in the occurrence of any of the other 

  

					
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conditions precedent to the New Expansion Commencement Date, as set forth in this Amendment, as a direct, indirect, partial, or total result of (each, a “Tenant Delay”): 

5.2.1 Tenant’s failure to timely approve any matter requiring Tenant’s approval; 

5.2.2 A breach by Tenant of the terms of this Tenant Work Letter or the Lease, as amended; 

5.2.3 Tenant’s request for changes in the Approved Space Plan and Pricing Plan, the Approved Working Drawings, or the
Tenant Improvements; 
 5.2.4 Changes in any of the Approved Space Plan and Pricing Plan, the Approved Working
Drawings, or the Tenant Improvements because the same do not comply with applicable laws; 
 5.2.5 Tenant’s
requirement for materials, components, finishes or improvements which are not available in a commercially reasonable time given the anticipated date of January 1, 2011 of the Substantial Completion of the Premises (i.e., the New Expansion
Premises), as set forth in this Amendment, or which are different from, or not included in, Landlord’s standard improvement package items for the Building; 
 5.2.6 Changes to the base, shell and core work of the Building required by the Approved Space Plan and Pricing Plan, or the Approved Working Drawings; or 

5.2.7 Any other acts or omissions of Tenant, or its agents, or employees; 

then, notwithstanding anything to the contrary set forth in the Lease, as amended, or this Tenant Work Letter and regardless of the actual date of the
Substantial Completion of the Premises (i.e. the New Expansion Premises), the date of the Substantial Completion of the Premises (i.e., the. New Expansion Premises) shall be deemed to be the date the Substantial Completion of the Premises (i.e., the
New Expansion Premises) would have occurred if no Tenant Delay or Delays, as set forth above, had occurred. 
 SECTION 6

 MISCELLANEOUS 
 6.1 Tenant’s Entry Into the Premises Prior to Substantial Completion. Provided that Tenant and its agents do not interfere with Contractor’s work in the Building and the Premises,
Contractor shall allow Tenant access to the Premises prior to the Substantial Completion of the Premises for the purpose of Tenant installing overstandard equipment or fixtures (including Tenant’s data and telephone equipment, work-stations and
built-in furniture) in the Premises. Prior to Tenant’s entry into the Premises as permitted by the terms of this Section 6.1, Tenant shall submit a schedule to Landlord and Contractor, for their approval, which schedule shall detail
the timing and purpose of Tenant’s entry. Tenant shall hold Landlord harmless from and indemnify, protect and defend Landlord against any loss or damage to the Building or Premises and against injury to any persons caused by Tenant’s
actions pursuant to this Section 6.1. 

  

					
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 6.2 Freight Elevators. Landlord shall, consistent with its obligations to other
tenants of the Building, make the freight elevator reasonably available to Tenant in connection with initial decorating, furnishing and moving into the Premises. 
 6.3 Tenant’s Representative. Tenant has designated Kris Courtney as its sole representative with respect to the matters set forth in this Tenant Work Letter, who, until further notice to
Landlord, shall have full authority and responsibility to act on behalf of the Tenant as required In this Tenant Work Letter. 

6.4 Landlord’s Representative. Landlord has designated Mr. Gregory Johnson as its sole representative with respect to
the matters set forth in this Tenant Work Letter, who, until further notice to Tenant, shall have full authority and responsibility to act on behalf of the Landlord as required in this Tenant Work Letter. 

6.5 Tenant’s Agents. All subcontractors, laborers, materialmen, and suppliers retained directly by Tenant shall all be union
labor in compliance with the then existing master labor agreements, 
 6.6 Time of the Essence in This Tenant Work
Letter. Unless otherwise indicated, all references herein to a “number of days” shall mean and refer to calendar days. In all instances where Tenant is required to approve or deliver an item, if no written notice of approval is given
or the item is not delivered within the stated time period, at Landlord’s sole option, at the end of such period the item shall automatically be deemed approved or delivered by Tenant and the next succeeding time period shall commence.

 6.8 Tenant’s Lease Default. Notwithstanding any provision to the contrary contained in the Lease, as amended, if
an event of default as described in the Lease, as amended, or a default by Tenant under this Tenant Work Letter, has occurred at any time on or before the completion of the Tenant Improvements in the Premises, then (i) in addition to all other
rights and remedies granted to Landlord pursuant to the Lease, as amended, Landlord shall have the right to cause Contractor to cease the construction of the Premises (in which case, Tenant shall be responsible for any delay in the Substantial
Completion of the Tenant Improvements in the Premises caused by such work stoppage), and (ii) all other obligations of Landlord under the terms of this Tenant Work Letter shall be forgiven until such time as such default is cured pursuant to
the terms of the Lease, as amended. 

  

					
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 SCHEDULE 1 TO EXHIBIT B 

LAKE MERRITT PLAZA 
 APPROVED SPACE PLAN AND PRICING FLAN 

 

 

  

  

					
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 [BrightSource Energy, Inc.]2007 Long-Term Incentive Plan

 EXHIBIT 10.1 
 SPECTRA ENERGY CORP 
 2007 LONG-TERM INCENTIVE PLAN 

(as amended and restated) 
  

	1.	PURPOSE OF THE PLAN 

 The
purpose of the amended and restated Spectra Energy Corp 2007 Long-Term Incentive Plan is to promote the interests of the Corporation and its shareholders by strengthening the Corporation’s ability to attract, motivate and retain key employees
and directors of the Corporation upon whose judgment, initiative and efforts the financial success and growth of the business of the Corporation largely depend, and to provide an additional incentive for key employees and directors through stock
ownership and other rights that promote and recognize the financial success and growth of the Corporation. In addition, the Spectra Energy Corp 2007 Long-Term Incentive Plan permitted the issuance of long-term incentive awards in partial
substitution of long-term incentive awards that covered shares of the common stock of Duke Energy Corporation immediately prior to the spin-off of Spectra Energy Corp by Duke Energy Corporation. The Plan was initially adopted and became effective
immediately before the consummation of the separation transaction pursuant to which the Corporation became a separate publicly-held corporation for the first time, and was subsequently amended effective January 1, 2008, December 31,
2008 and January 1, 2009. 
  

	2.	DEFINITIONS 

 Wherever
the following capitalized terms are used in this Plan they shall have the meanings specified below: 
 (a) “Award”
means an award of an Option, Restricted Stock, Stock Appreciation Right, Performance Award, Phantom Stock, Stock Bonus or Dividend Equivalent granted under the Plan. 
 (b) “Award Agreement” means an agreement entered into between the Corporation and a Participant setting forth the terms and conditions of an Award granted to a Participant. 

(c) “Board” means the Board of Directors of the Corporation. 

(d) “Change in Control” shall have the meaning specified in Section 13 hereof. 

(e) “Code” means the Internal Revenue Code of 1986, as amended. 

(f) “Committee” means the Compensation Committee of the Board, or such other committee or subcommittee of the Board or group of
individuals appointed by the Board to administer the Plan from time to time. 
 (g) “Common Stock” means the common
stock of the Corporation, or any security into which such Common Stock may be changed by reason of any transaction or event of the type described in Section 3.2. 
 (h) “Conversion Award” shall have the meaning specified in Section 15.15 hereof. 
 (i) “Corporation” means Spectra Energy Corp, a Delaware corporation. 

(j) “Date of Grant” means the date on which an Award under the Plan is made by the Committee (which date shall not be earlier
than the date on which the Committee takes action with respect thereto), or such later date as the Committee may specify that the Award becomes effective. 
 (k) “Dividend Equivalent” means an Award under Section 12 hereof entitling the Participant to receive payments with respect to dividends declared on the Common Stock. 

(l) “Duke Energy” means Duke Energy Corporation, a Delaware corporation. 

  
 1 

 (m) “Duke Energy Award” shall have the meaning specified in Section 15.15
hereof. 
 (n) “Effective Date” means the Effective Date of this amended and restated Plan, as defined in
Section 16.1 hereof. 
 (o) “Eligible Person” means any person who is an Employee, an Independent Contractor or an
Independent Director. 
 (p) “Employee” means any person who is a key employee of the Corporation or any Subsidiary or
who has agreed to serve in such capacity within 90 days after the Date of Grant; provided, however, that with respect to Incentive Stock Options, “Employee” means any person who is considered an employee of the Corporation or any
Subsidiary for purposes of Treasury Regulation Section 1.421-1(h). 
 (q) “Fair Market Value” of a share of Common
Stock as of a given date means the closing sales price of the Common Stock on the New York Stock Exchange as reflected on the composite index on the date as of which Fair Market Value is to be determined or, in the absence of any reported sales of
Common Stock on such date, on the first preceding date on which any such sale shall have been reported. If Common Stock is not listed on the New York Stock Exchange on the date as of which Fair Market Value is to be determined, the Committee shall
determine in good faith the Fair Market Value in whatever manner it considers appropriate (but in any event such amount shall not be less than fair market value within the meaning of section 409A of the Code). 

(r) “Incentive Stock Option” means an option to purchase Common Stock that is intended to qualify as an incentive stock option
under section 422 of the Code and the Treasury Regulations thereunder. 
 (s) “Independent Contractor” means a person
who provides services to the Corporation or any Subsidiary, other than as an Employee or Independent Director. 
 (t)
“Independent Director” means a member of the Board who is not an employee of the Corporation or any Subsidiary. 
 (u)
“Nonqualified Stock Option” means an option to purchase Common Stock that is not an Incentive Stock Option. 
 (v)
“Option” means an Incentive Stock Option or a Nonqualified Stock Option granted under Section 6 hereof. 
 (w)
“Participant” means any Eligible Person who holds an outstanding Award under the Plan. 
 (x) “Performance
Award” means an Award made under Section 9 hereof entitling a Participant to a payment based on the Fair Market Value of Common Stock (a “Performance Share”) or based on specified dollar units (a “Performance Unit”) at
the end of a performance period if certain conditions established by the Committee are satisfied. 
 (y) “Phantom
Stock” means an Award under Section 10 hereof entitling a Participant to a payment at the end of a vesting period of a unit value based on the Fair Market Value of a share of Common Stock. 

(z) “Plan” means this amended and restated 2007 Long-Term Incentive Plan as set forth herein, and as it may be further amended
from time to time. 
 (aa) “Restricted Stock” means an Award under Section 8 hereof entitling a Participant to
shares of Common Stock that are nontransferable and subject to forfeiture until specific conditions established by the Committee are satisfied. 
 (bb) “Section 162(m)” means section 162(m) of the Code and the Treasury Regulations thereunder. 
 (cc) “Section 162(m) Participant” means any Participant who, in the sole judgment of the Committee, could be treated as a “covered employee” under Section 162(m) at the time
income may be recognized by such Participant in connection with an Award that is intended to qualify for exemption under Section 162(m). 

  
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 (dd) “Separation Date” means the date upon which the Corporation became publicly
traded in connection with its separation from Duke Energy. 
 (ee) “Separation From Service” means a Participants’
separation from service within the meaning of section 409A of the Code. 
 (ff) “Specified Employee” means a
Participant who is a “specified employee” (as defined in Code Section 409A(2)(B)(i)) of the Corporation (or an entity which is considered to be a single employer with the Corporation under Code Section 414(b) or 414(c)), as
determined under Code Section 409A at any time during the twelve (12) month period ending on December 31, but only if the Corporation has any stock that is publicly traded on an established securities market or otherwise.
Notwithstanding the foregoing, a Participant will be deemed to be a Specified Employee for the period of April 1 through March 31 following such December 31, except as otherwise required under Code Section 409A. 

(gg) “Stock Appreciation Right” or “SAR” means an Award under Section 7 hereof entitling a Participant to receive
an amount, representing the difference between the base price per share of the right and the Fair Market Value of a share of Common Stock on the date of exercise. 
 (hh) “Stock Bonus” means an Award under Section 11 hereof entitling a Participant to receive an unrestricted share of Common Stock. 

(ii) “Subsidiary” means an entity that is wholly owned, directly or indirectly, by the Corporation, or any other affiliate of
the Corporation that is so designated, from time to time, by the Committee, provided, however, that with respect to Incentive Stock Options, the term “Subsidiary” shall not include any entity that does not qualify within the meaning of
section 424(f) of the Code as a “subsidiary corporation” with respect to the Corporation. 
  

	3.	SHARES OF COMMON STOCK SUBJECT TO THE PLAN 

 3.1. Number of Shares. Subject to the following provisions of this Section 3, the aggregate number of shares of Common Stock that may be issued pursuant to all Awards under the Plan is
40,000,000 shares of Common Stock plus the number of shares of Common Stock that are covered by Conversion Awards. Shares of Common Stock that are issued in connection with Conversion Awards shall not count against the 40,000,000 share limit
described above. Shares of Common Stock that are issued in settlement of Awards, other than Options and SARs, that were granted prior to the Effective Date shall be counted against the 40,000,000 share limit described above as four shares of Common
Stock for every one share of Common Stock that is issued in connection with such Award. Shares of Common Stock that are issued in connection with Awards granted on and after the Effective Date will be counted against the 40,000,000 share limit
described above as one share of Common Stock for every one share of Common Stock that is issued in connection with all Awards. Other than Conversion Awards, no more than 40,000,000 shares of Common Stock may be issued pursuant to Incentive Stock
Options. The shares of Common Stock to be delivered under the Plan will be made available from authorized but unissued shares of Common Stock or treasury stock. 
 Shares covered by an Award shall only be counted as used to the extent they are actually issued. Any Shares related to Awards (other than, in each case, Conversion Awards) that terminate by expiration,
forfeiture, cancellation or otherwise without the issuance of such Shares, are settled in cash in lieu of Shares, or are exchanged with the Committee’s permission, prior to the issuance of Shares, for Awards not involving Shares, shall be
available again for grant under the Plan. With respect to Awards that are settled on or after the Effective Date, including without limitation Awards that were granted prior to and remain outstanding as of the Effective Date, if the exercise price
of an Option or the tax withholding requirements with respect to any Award granted under the Plan are satisfied through the withholding by the Corporation of Shares otherwise then deliverable in respect of such Award or actual or constructive
transfer to the Corporation of Shares already owned, a number of Shares equal to such withheld or transferred Shares will again be available for issuance or transfer under the Plan, or if an SAR is exercised, only the number of Shares issued, net of
the Shares tendered, if any, will be 

  
 3 

 
deemed delivered for purposes of determining the maximum number of Shares available for delivery under the Plan. Solely with respect to Awards that were granted and exercised or settled, as
applicable, prior to the Effective Date, notwithstanding anything to the contrary contained herein, (A) Common Stock tendered in payment of the exercise price of an Option prior to the Effective Date shall not be added to the aggregate Plan
limit described above; (B) Common Stock withheld by the Corporation to satisfy a tax withholding obligation prior to the Effective Date shall not be added to the aggregate Plan limit described above; (C) Common Stock that is repurchased by
the Corporation with Option proceeds prior to the Effective Date shall not be added to the aggregate Plan limit described above and (D) all Common Stock covered by an SAR, to the extent that it is exercised and settled in Common Stock prior to
the Effective Date, and whether or not Common Stock is actually issued or transferred to the Participant upon exercise of the SAR, shall be considered issued or transferred pursuant to the Plan. 

To the extent permitted by applicable law or any exchange rule, Shares issued in assumption of, or in substitution for, any outstanding
awards of any entity acquired in any form of combination by the Corporation or any affiliate shall not be counted against Shares available for grant pursuant to the Plan. 
 3.2. Adjustments. If there shall occur any merger, consolidation, liquidation, issuance of rights or warrants to purchase securities, recapitalization, reclassification, stock dividend, spin-off,
split-off, stock split, reverse stock split or other distribution with respect to the shares of Common Stock, or any similar corporate transaction or event in respect of the Common Stock, then the Committee shall, in the manner and to the extent
that it deems appropriate and equitable to the Participants and consistent with the terms of this Plan, cause a proportionate adjustment to be made in (i) the maximum numbers and kind of shares provided in Section 3.1 hereof, (ii) the
maximum numbers and kind of shares set forth in Sections 6.1, 7.1, 8.2 and 9.4 hereof, (iii) the number and kind of shares of Common Stock, share units, or other rights subject to the then-outstanding Awards, (iv) the price for each share
or unit or other right subject to then outstanding Awards without change in the aggregate purchase price or value as to which such Awards remain exercisable or subject to restrictions, (v) the performance targets or goals appropriate to any
outstanding Performance Awards (subject to such limitations as appropriate for Awards intended to qualify for exemption under Section 162(m)) or (vi) any other terms of an Award that are affected by the event. Moreover, in the event of any
such transaction or event, the Committee, in its discretion, may provide in substitution for any or all outstanding awards under the Plan such alternative consideration (including cash) as it, in good faith, may determine to be equitable under the
circumstances and may require in connection therewith the surrender of all awards so replaced. Notwithstanding the foregoing, any such adjustments shall be made in a manner consistent with the requirements of section 409A of the Code. 

 

	4.	ADMINISTRATION OF THE PLAN 

 4.1. Committee Members. Except as provided in Section 4.4 hereof, the Plan will be administered by the Committee, which unless otherwise determined by the Board will consist solely of two or
more persons who satisfy the requirements for a “nonemployee director” under Rule 16b-3 promulgated under the Securities Exchange Act of 1934, as amended and/or the requirements for an “outside director” under
Section 162(m). The Committee may exercise such powers and authority as may be necessary or appropriate for the Committee to carry out its functions as described in the Plan. No member of the Committee will be liable for any action or
determination made in good faith by the Committee with respect to the Plan or any Award under it. 
 4.2. Discretionary
Authority. Subject to the express limitations of the Plan, the Committee has authority in its discretion to determine the Eligible Persons to whom, and the time or times at which, Awards may be granted, the number of shares, units or other
rights subject to each Award, the exercise, base or purchase price of an Award (if any), the time or times at which an Award will become vested, exercisable or payable, the performance criteria, performance goals and other conditions of an Award,
and the duration of the Award. The Committee also has discretionary authority to interpret the Plan, to make all factual determinations under the Plan, and to determine the terms and provisions of the respective Award Agreements and to make all
other determinations necessary or advisable for Plan administration. The Committee has authority to prescribe, amend, and rescind 

  
 4 

 
rules and regulations relating to the Plan. All interpretations, determinations, and actions by the Committee will be final, conclusive, and binding upon all parties. 

4.3. Changes to Awards. The Committee shall have the authority to effect, at any time and from time to time, with the consent of
the affected Participants, (i) the cancellation of any or all outstanding Awards and the grant in substitution therefor of new Awards covering the same or different numbers of shares of Common Stock and having an exercise or base price which
may be the same as or different than the exercise or base price of the canceled Awards or (ii) the amendment of the terms of any and all outstanding Awards; provided, however, that the Committee shall not have the authority to reduce the
exercise or base price of an Award by amendment or cancellation and substitution of an existing Award without the approval of the Corporation’s shareholders. The Committee may in its discretion accelerate the vesting or exercisability of an
Award at any time or on the basis of any specified event. 
 4.4. Delegation of Authority. The Committee shall have the
right, from time to time, to delegate to one or more officers or directors of the Corporation the authority of the Committee to grant and determine the terms and conditions of Awards under the Plan, subject to such limitations as the Committee shall
determine; provided, however, that no such authority may be delegated with respect to Awards made to any member of the Board or any Section 162(m) Participant. 
 4.5. Awards to Independent Directors. An Award to an Independent Director under the Plan shall be approved by the Board. With respect to Awards to Independent Directors, all rights, powers and
authorities vested in the Committee under the Plan shall instead be exercised by the Board, and all provisions of the Plan relating to the Committee shall be interpreted in a manner consistent with the foregoing by treating any such reference as a
reference to the Board for such purpose. 
  

	5.	ELIGIBILITY AND AWARDS 

All Eligible Persons are eligible to be designated by the Committee to receive an Award under the Plan. The Committee has authority, in
its sole discretion, to determine and designate from time to time those Eligible Persons who are to be granted Awards, the types of Awards to be granted and the number of shares or units subject to the Awards that are granted under the Plan. Each
Award will be evidenced by an Award Agreement as described in Section 14 hereof between the Corporation and the Participant that shall include the terms and conditions consistent with the Plan as the Committee may determine. 

 

	6.	STOCK OPTIONS 

 6.1.
Grant of Option. An Option may be granted to any Eligible Person selected by the Committee; provided, however, that only Employees shall be eligible for Awards of Incentive Stock Options. Each Option shall be designated, at the discretion of
the Committee, as an Incentive Stock Option or a Nonqualified Stock Option. Other than Conversion Awards, the maximum number of shares of Common Stock that may be granted under Options to any one Participant during any one calendar year shall be
limited to 3,000,000 shares (subject to adjustment as provided in Section 3.2 hereof). 
 6.2. Exercise Price. The
exercise price of the Option shall be determined by the Committee; provided, however, that the exercise price per share of an Option shall not be less than 100 percent of the Fair Market Value per share of the Common Stock on the Date of Grant.

 6.3. Vesting; Term of Option. The Committee, in its sole discretion, shall prescribe in the Award Agreement the time
or times at which, or the conditions upon which, an Option or portion thereof shall become vested and exercisable, and may accelerate the exercisability of any Option at any time. An Option may become vested and exercisable upon a Participant’s
retirement, death, disability, Change in Control or other event, to the extent provided in an Award Agreement. The period during which a vested Option may be exercised shall be ten years 

  
 5 

 
from the Date of Grant, unless a shorter exercise period is specified by the Committee in an Award Agreement, and subject to such limitations as may apply under an Award Agreement relating to the
termination of a Participant’s employment or other service with the Corporation or any Subsidiary. 
 6.4. Option
Exercise; Withholding. Subject to such terms and conditions as shall be specified in an Award Agreement, an Option may be exercised in whole or in part at any time during the term thereof by notice to the Corporation together with payment of the
aggregate exercise price therefor. Payment of the exercise price shall be made (i) in cash or by cash equivalent, (ii) at the discretion of the Committee, in shares of Common Stock acceptable to the Committee, valued at the Fair Market
Value of such shares on the date of exercise, (iii) at the discretion of the Committee, by a delivery of a notice that the Participant has placed a market sell order (or similar instruction) with a broker with respect to shares of Common Stock
then issuable upon exercise of the Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Corporation in satisfaction of the Option exercise price (conditioned upon the payment of such net
proceeds), (iv) at the discretion of the Committee, by withholding from delivery shares of Common Stock for which the Option is otherwise exercised, (v) at the discretion of the Committee, by a combination of the methods described above or
(vi) by such other method as may be approved by the Committee and set forth in the Award Agreement. In addition to and at the time of payment of the exercise price, the Participant shall pay to the Corporation the full amount of any and all
applicable income tax and employment tax amounts required to be withheld in connection with such exercise, payable under one or more of the methods described above for the payment of the exercise price of the Options or as otherwise may be approved
by the Committee. 
 6.5. Limited Transferability. Solely to the extent permitted by the Committee in an Award Agreement
and subject to such terms and conditions as the Committee shall specify, a Nonqualified Stock Option (but not an Incentive Stock Option) may be transferred to members of the Participant’s immediate family (as determined by the Committee) or to
trusts, partnerships or corporations whose beneficiaries, members or owners are members of the Participant’s immediate family, and/or to such other persons or entities as may be approved by the Committee in advance and set forth in an Award
Agreement, in each case subject to the condition that the Committee be satisfied that such transfer is being made for estate or tax planning purposes or for gratuitous or donative purposes, without consideration (other than nominal consideration)
being received therefor. Except to the extent permitted by the Committee in accordance with the foregoing, an Option shall be nontransferable otherwise than by will or by the laws of descent and distribution, and shall be exercisable during the
lifetime of a Participant only by such Participant. 
 6.6. Additional Rules for Incentive Stock Options. 

(a) Annual Limits. No Incentive Stock Option shall be granted to a Participant as a result of which the aggregate fair market value
(determined as of the Date of Grant) of the stock with respect to which Incentive Stock Options are exercisable for the first time in any calendar year under the Plan, and any other stock option plans of the Corporation, any Subsidiary or any parent
corporation, would exceed $100,000 (or such other amount provided under section 422(d) of the Code), determined in accordance with section 422(d) of the Code and Treasury Regulations thereunder. This limitation shall be applied by taking options
into account in the order in which granted. 
 (b) Termination of Employment. An Award Agreement for an Incentive Stock
Option may provide that such Option may be exercised not later than 3 months following termination of employment of the Participant with the Corporation and all Subsidiaries, subject to special rules relating to death and disability, as and to the
extent determined by the Committee to be appropriate with regard to the requirements of section 422 of the Code and Treasury Regulations thereunder. 
 (c) Other Terms and Conditions; Nontransferability. Any Incentive Stock Option granted hereunder shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as
are deemed necessary or desirable by the Committee, which terms, together with the terms of this Plan, shall be intended and interpreted to cause such Incentive Stock Option to qualify as an “incentive stock option” under section 422 of
the Code and Treasury Regulations thereunder. Such terms shall include, 

  
 6 

 
if applicable, limitations on Incentive Stock Options granted to ten-percent owners of the Corporation. An Award Agreement for an Incentive Stock Option may provide that such Option shall be
treated as a Nonqualified Stock Option to the extent that certain requirements applicable to “incentive stock options” under the Code shall not be satisfied. An Incentive Stock Option shall by its terms be nontransferable otherwise than by
will or by the laws of descent and distribution, and shall be exercisable during the lifetime of a Participant only by such Participant. 
 (d) Disqualifying Dispositions. If shares of Common Stock acquired by exercise of an Incentive Stock Option are disposed of within two years following the Date of Grant or one year following the
transfer of such shares to the Participant upon exercise, the Participant shall, promptly following such disposition, notify the Corporation in writing of the date and terms of such disposition and provide such other information regarding the
disposition as the Committee may reasonably require. 
  

	7.	STOCK APPRECIATION RIGHTS 

7.1. Grant of SARs. A Stock Appreciation Right granted to a Participant is an Award in the form of a right to receive, upon
surrender of the right, but without other payment, an amount based on appreciation in the Fair Market Value of the Common Stock over a base price established for the Award, exercisable at such time or times and upon conditions as may be approved by
the Committee. Other than Conversion Awards, the maximum number of shares of Common Stock that may be subject to SARs granted to any one Participant during any one calendar year shall be limited to 3,000,000 shares (subject to adjustment as provided
in Section 3.2 hereof). 
 7.2. Tandem SARs. A Stock Appreciation Right may be granted in connection with an Option,
either at the time of grant or at any time thereafter during the term of the Option. An SAR granted in connection with an Option will entitle the holder, upon exercise, to surrender such Option or any portion thereof to the extent unexercised, with
respect to the number of shares as to which such SAR is exercised, and to receive payment of an amount computed as described in Section 7.4 hereof. Such Option will, to the extent and when surrendered, cease to be exercisable. An SAR granted in
connection with an Option hereunder will have a base price per share equal to the per share exercise price of the Option, will be exercisable at such time or times, and only to the extent, that a related Option is exercisable, and will expire no
later than the related Option expires. 
 7.3. Freestanding SARs. A Stock Appreciation Right may be granted without
relationship to an Option and, in such case, will be exercisable as determined by the Committee, but in no event after 10 years from the Date of Grant. The base price of an SAR granted without relationship to an Option shall be determined by the
Committee in its sole discretion; provided, however, that the base price per share of a freestanding SAR shall not be less than 100 percent of the Fair Market Value of the Common Stock on the Date of Grant. 

7.4. Payment of SARs. An SAR will entitle the holder, upon exercise of the SAR, to receive payment of an amount determined
by multiplying: (i) the excess of the Fair Market Value of a share of Common Stock on the date of exercise of the SAR over the base price of such SAR, by (ii) the number of shares as to which such SAR will have been exercised. Payment of
the amount determined under the previous sentence may be made, in the discretion of the Committee as set forth in the Award Agreement, in a lump sum (i) in cash, (ii) in shares of Common Stock valued at their Fair Market Value on the date
of exercise, or (iii) in a combination of cash and shares of Common Stock, and paid not later than sixty (60) days following the date of exercise of the SAR.  

 

	8.	RESTRICTED STOCK 

 8.1.
Grants of Restricted Stock. An Award of Restricted Stock to a Participant represents shares of Common Stock that are issued subject to such restrictions on transfer and other incidents of ownership and such forfeiture conditions as the
Committee may determine. The Committee may, in connection with an Award of Restricted Stock, require the payment of a specified purchase price. The Committee may grant Awards of Restricted Stock that are intended to qualify for exemption under
Section 162(m), as well as Awards of Restricted Stock that are not intended to so qualify. 

  
 7 

 8.2. Vesting Requirements. The restrictions imposed on an Award of Restricted Stock
shall lapse in accordance with the vesting requirements specified by the Committee in the Award Agreement. Such vesting requirements may be based on the continued employment or service of the Participant with the Corporation or its Subsidiaries for
a specified time period or periods, provided that any such restriction shall not be scheduled to lapse in its entirety earlier than the first anniversary of the Date of Grant. Such vesting requirements may also be based on the attainment of
specified business goals or measures established by the Committee in its sole discretion. In the case of any Award of Restricted Stock that is intended to qualify for exemption under Section 162(m), the vesting requirements shall be limited to
the performance criteria identified in Section 9.3 below, and the terms of the Award shall otherwise comply with the Section 162(m) requirements described in Section 9.4 hereof. Other than Conversion Awards, the maximum number of
shares of Common Stock that may be subject to an Award of Restricted Stock granted to any one Participant during any one calendar year shall be separately limited to 600,000 shares (subject to adjustment as provided in Section 3.2 hereof).

 8.3. Restrictions. Shares of Restricted Stock may not be transferred, assigned or subject to any encumbrance, pledge
or charge until all applicable restrictions are removed or expire or unless otherwise allowed by the Committee. The Committee may require the Participant to enter into an escrow agreement providing that the certificates representing Restricted Stock
granted or sold pursuant to the Plan will remain in the physical custody of an escrow holder until all restrictions are removed or expire. Failure to satisfy any applicable restrictions shall result in the subject shares of Restricted Stock being
forfeited and returned to the Corporation, with any purchase price paid by the Participant to be refunded, unless otherwise provided by the Committee. The Committee may require that certificates representing Restricted Stock granted under the Plan
bear a legend making appropriate reference to the restrictions imposed. 
 8.4. Rights as Shareholder. Subject to the
foregoing provisions of this Section 8 and the applicable Award Agreement, the Participant will have all rights of a shareholder with respect to shares of Restricted Stock granted to him, including the right to vote the shares and receive all
dividends and other distributions paid or made with respect thereto, unless the Committee determines otherwise at the time the Restricted Stock is granted, as set forth in the Award Agreement. 

8.5. Section 83(b) Election. The Committee may provide in an Award Agreement that the Award of Restricted Stock is
conditioned upon the Participant refraining from making an election with respect to the Award under section 83(b) of the Code. Irrespective of whether an Award is so conditioned, if a Participant makes an election pursuant to section 83(b) of the
Code with respect to an Award of Restricted Stock, the Participant shall be required to promptly file a copy of such election with the Corporation. 
  

	9.	PERFORMANCE AWARDS 

 9.1.
Grant of Performance Awards. The Committee may grant Performance Awards under the Plan, which shall be represented by units denominated on the Date of Grant either in shares of Common Stock (Performance Shares) or in specified dollar amounts
(Performance Units). The Committee may grant Performance Awards that are intended to qualify for exemption under Section 162(m), as well as Performance Awards that are not intended to so qualify. At the time a Performance Award is granted, the
Committee shall determine, in its sole discretion, one or more performance periods and performance goals to be achieved during the applicable performance periods, as well as such other restrictions and conditions as the Committee deems appropriate.
In the case of Performance Units, the Committee shall also determine a target unit value or a range of unit values for each Award. No performance period shall exceed ten years from the Date of Grant. The performance goals applicable to a Performance
Award grant may be subject to such later revisions as the Committee shall deem appropriate to reflect significant unforeseen events such as changes in law, accounting practices or unusual or nonrecurring items or occurrences or to satisfy regulatory
requirements. Any such adjustments shall be subject to such limitations as the Committee deems appropriate in the case of a Performance Award granted to a Section 162(m) Participant that is intended to qualify for exemption under
Section 162(m). 

  
 8 

 9.2. Payment of Performance Awards. At the end of the performance period, the
Committee shall determine the extent to which performance goals have been attained or a degree of achievement between minimum and maximum levels in order to establish the level of payment to be made, if any, and shall determine if payment is to be
made in the form of cash or shares of Common Stock (valued at their Fair Market Value at the time of payment) or a combination of cash and shares of Common Stock. Payment of Performance Awards shall be made not later than sixty (60) days
following the end of the performance period, unless the applicable Performance Award provides otherwise. 
 9.3. Performance
Criteria. The performance criteria upon which the payment or vesting of a Performance Award intended to qualify for exemption under Section 162(m) may be based shall be limited to the following business measures, which may be applied with
respect to the Corporation, any Subsidiary or any business unit, or, if applicable, any Participant, and which may be measured on an absolute or relative to a peer-group or other market measure basis: total shareholder return; stock price increase;
return on equity; return on capital; earnings per share; EBIT (earnings before interest and taxes); EBITDA (earnings before interest, taxes, depreciation and amortization); ongoing earnings; cash flow (including operating cash flow, free cash flow,
discounted cash flow return on investment, and cash flow in excess of costs of capital); EVA (economic value added); economic profit (net operating profit after tax, less a cost of capital charge); SVA (shareholder value added); revenues; net
income; operating income; pre-tax profit margin; performance against business plan; customer service; corporate governance quotient or rating; market share; employee satisfaction; safety; employee engagement; supplier diversity; workforce diversity;
operating margins; credit rating; dividend payments; expenses; retained earnings; completion of acquisitions, divestitures and corporate restructurings; and individual goals based on objective business criteria underlying the goals listed above and
which pertain to individual effort as to achievement of those goals or to one or more business criteria in the areas of litigation, human resources, information services, production, inventory, support services, site development, plant development,
building development, facility development, government relations, product market share or management. At the time the Committee determines the terms of the Performance Target(s), the Committee may also specify any exclusion(s) for charges related to
any event(s) or occurrence(s) which the Committee determines should appropriately be excluded, as applicable, for purposes of measuring performance against the applicable Performance Targets provided that such excluded items are objectively
determinable by reference to the Corporation’s financial statements, notes to the Corporation’s financial statements and/or management’s discussion and analysis of financial condition and results of operations, appearing in the
Corporation’s Annual Report on Form 10-K for the applicable year. If the Committee determines that a change in the business, operations, corporate structure or capital structure of the Corporation, or the manner in which it conducts its
business, or other events or circumstances, render previously established Performance Targets unsuitable, the Committee may in its discretion modify such Performance Targets, in whole or in part, as the Committee deems appropriate and equitable;
provided that, unless the Committee determines otherwise, no such action shall be taken if and to the extent it would result in the loss of an otherwise available exemption of the Award under Section 162(m). In the case of Performance Awards
that are not intended to qualify for exemption under Section 162(m), the Committee shall designate performance criteria from among the foregoing or such other business criteria as it shall determine in its sole discretion. 

9.4. Section 162(m) Requirements. In the case of a Performance Award granted to a Section 162(m) Participant that is
intended to comply with the requirements for exemption under Section 162(m), the Committee shall make all determinations necessary to establish a Performance Award within 90 days of the beginning of the performance period (or such other time
period required under Section 162(m)), including, without limitation, the designation of the Section 162(m) Participants to whom Performance Awards are made, the performance criteria or criterion applicable to the Award and the performance
goals that relate to such criteria, and the dollar amounts or number of shares of Common Stock payable upon achieving the applicable performance goals. As and to the extent required by Section 162(m), the terms of a Performance Award granted to
a Section 162(m) Participant must state, in terms of an objective formula or standard, the method of computing the amount of compensation payable to the Section 162(m) Participant, and must preclude discretion to increase the amount of
compensation payable that would otherwise be due under the terms of the Award, and, prior to the payment of such compensation, the Committee shall have certified in writing that the applicable performance goal has been

  
 9 

 
satisfied. Other than Conversion Awards, the maximum amount of compensation that may be payable under Performance Units granted to any one Participant during any one calendar year shall not
exceed $7,500,000. Other than Conversion Awards, the maximum number of Common Stock units that may be subject to a Performance Share Award granted to any one Participant during any one calendar year shall be 750,000 share units (subject to
adjustment as provided in Section 3.2 hereof). 
  

	10.	PHANTOM STOCK 

 10.1.
Grant of Phantom Stock. Phantom Stock is an Award to a Participant of a number of hypothetical share units with respect to shares of Common Stock, with an initial value based on the Fair Market Value of the Common Stock on the Date of Grant.
Phantom Stock shall be subject to such restrictions and conditions as the Committee shall determine. On the Date of Grant, the Committee shall determine, in its sole discretion, the installment or other vesting period of the Phantom Stock and the
maximum value of the Phantom Stock, if any. No vesting period shall exceed 10 years from the Date of Grant. 
 10.2. Payment
of Phantom Stock. Upon the vesting date or dates applicable to Phantom Stock granted to a Participant, an amount equal to the Fair Market Value of one share of Common Stock upon such vesting dates (subject to any applicable maximum value) shall
be paid with respect to such Phantom Stock unit granted to the Participant. Payment may be made, at the discretion of the Committee, in cash or in shares of Common Stock valued at their Fair Market Value on the applicable vesting dates, or in a
combination thereof. Payment of Phantom Stock shall be made not later than sixty (60) days following the vesting date, unless the applicable Phantom Stock Award provides otherwise. 

 

	11.	STOCK BONUS 

 11.1.
Grant of Stock Bonus. An Award of a Stock Bonus to a Participant represents a specified number of shares of Common Stock that are issued without restrictions on transfer or forfeiture conditions. The Committee may, in connection with an Award
of a Stock Bonus, require the payment of a specified purchase price. 
 11.2. Payment of Stock Bonus. In the event that
the Committee grants a Stock Bonus, a certificate for (or book entry representing) the shares of Common Stock constituting such Stock Bonus shall be issued in the name of the Participant to whom such grant was made as soon as practicable after the
date on which such Stock Bonus is payable, but not later than sixty (60) days following such date. 
  

	12.	DIVIDEND EQUIVALENTS 

12.1. Grant of Dividend Equivalents. A Dividend Equivalent granted to a Participant is an Award in the form of a right to receive
cash payments determined by reference to dividends declared on the Common Stock from time to time during the term of the Award, which shall not exceed 10 years from the Date of Grant. Dividend Equivalents may be granted on a stand-alone basis or in
tandem with other Awards. Dividend Equivalents granted on a tandem basis shall expire at the time the underlying Award is exercised or otherwise becomes payable to the Participant, or expires or is forfeited. 

12.2. Payment of Dividend Equivalents. Dividend Equivalent Awards shall be payable in cash or in shares of Common Stock, valued at
their Fair Market Value on either the date the related dividends are declared or the Dividend Equivalents are paid to a Participant, as determined by the Committee. Dividend Equivalents shall be payable to a Participant as soon as practicable
following the date dividends are declared and paid with respect to Common Stock, but not later than sixty (60) days following such date, or at such later date as the Committee shall specify in the Award Agreement. Dividend Equivalents granted
with respect to Options shall be payable, in accordance with the terms and in compliance with section 409A of the Code, regardless of whether the Option is exercised. 

  
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	13.	CHANGE IN CONTROL 

 13.1.
Effect of Change in Control. The Committee may, in an Award Agreement or at any time thereafter, provide for the effect of a Change in Control on an Award. Such provisions may include any one or more of the following, which need not be
uniform and may vary among Participants and Awards: (i) the acceleration or extension of time periods for purposes of exercising, vesting in, or realizing gain from any Award, (ii) the waiver or modification of performance or other
conditions related to the payment or other rights under an Award; (iii) provision for the cash settlement of an Award for an equivalent cash value, as determined by the Committee, (iv) the assumption of any such Award by an acquirer or
successor or (v) such other modification or adjustment to an Award as the Committee deems appropriate to maintain and protect the rights and interests of Participants upon or following a Change in Control. 

13.2. Definition of Change in Control. Except as otherwise provided by the Committee in an Award Agreement, for purposes hereof, a
“Change in Control” shall be deemed to have occurred upon: 
 (a) an acquisition subsequent to the Separation Date 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 thirty percent (30%) or more of either (A) the then outstanding shares of Common Stock or (B) the combined voting power of the then outstanding voting securities of the Corporation entitled
to vote generally in the election of directors; excluding, however, the following: (1) any acquisition directly from the Corporation, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so
converted was itself acquired directly from the Corporation, (2) any acquisition by the Corporation and (3) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Corporation or any Subsidiary;

 (b) during any period of two (2) consecutive years (not including any period prior to the Separation Date), individuals
who at the beginning of such period constitute the Board (and any new directors whose election by the Board or nomination for election by the Corporation’s shareholders was approved by a vote of at least two-thirds (2/3) of the directors
then still in office who either were directors at the beginning of the period or whose election or nomination for election was so approved) cease for any reason (except for death, disability or voluntary retirement) to constitute a majority thereof;

 (c) the consummation of a merger, consolidation, reorganization or similar corporate transaction which has been approved by
the shareholders of the Corporation, whether or not the Corporation is the surviving corporation in such transaction, other than a merger, consolidation, or reorganization that would result in the voting securities of the Corporation outstanding
immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the combined voting power of the voting securities of the
Corporation (or such surviving entity) outstanding immediately after such merger, consolidation, or reorganization; or 
 (d) the
consummation of (A) the sale or other disposition of all or substantially all of the assets of the Corporation or (B) a complete liquidation or dissolution of the Corporation, which has been approved by the shareholders of the Corporation;

 provided that in no event shall a Change in Control be deemed to have occurred by reason of any of the events resulting from the separation
transaction pursuant to which the Corporation becomes a separate publicly-held corporation for the first time. 

Notwithstanding the foregoing, with respect to an Award (i) that is subject to Code Section 409A and (ii) for which a
Change in Control would accelerate the timing of payment thereunder, the term “Change in Control” shall mean a change in the ownership or effective control of the Corporation, or in the ownership of a substantial

  
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portion of the Corporation as defined in Code Section 409A and authoritative guidance thereunder, but only to the extent inconsistent with the above definition and as necessary to comply
with Code Section 409A as determined by the Committee. 
  

	14.	AWARD AGREEMENTS 

 14.1.
Form of Agreement. Each Award under this Plan shall be evidenced by an Award Agreement in a form approved by the Committee setting forth the number of shares of Common Stock, units or other rights (as applicable) subject to the Award, the
exercise, base or purchase price (if any) of the Award, the time or times at which an Award will become vested, exercisable or payable, the duration of the Award and, in the case of Performance Awards, the applicable performance criteria and goals.
The Award Agreement shall also set forth other material terms and conditions applicable to the Award as determined by the Committee consistent with the limitations of this Plan. Award Agreements evidencing Awards intended to qualify for exemption
under Section 162(m) shall contain such terms and conditions as may be necessary to meet the applicable requirements of Section 162(m). Award Agreements evidencing Incentive Stock Options shall contain such terms and conditions as may be
necessary to meet the applicable provisions of section 422 of the Code. 
 14.2. Termination of Service. The Award
Agreements may include provisions describing the treatment of an Award in the event of the retirement, disability, death or Separation From Service, such as provisions relating to the vesting, exercisability, acceleration, forfeiture or cancellation
of the Award in these circumstances, including any such provisions as may be appropriate for Incentive Stock Options as described in Section 6.6(b) hereof. 
 14.3. Forfeiture Events. The Committee may specify in an Award Agreement that the Participant’s rights, payments and benefits with respect to an Award shall be subject to reduction,
cancellation, forfeiture or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events shall include, but shall not be limited to, Separation From
Service for cause, violation of material Corporation or Subsidiary policies, breach of noncompetition, confidentiality or other restrictive covenants that may apply to the Participant, or other conduct by the Participant that is detrimental to the
business or reputation of the Corporation or any Subsidiary. 
 14.4. Contract Rights; Amendment. Any obligation of the
Corporation to any Participant with respect to an Award shall be based solely upon contractual obligations created by an Award Agreement. Other than Conversion Awards, no Award shall be enforceable until the Award Agreement has been signed on behalf
of the Corporation (electronically or otherwise) by its authorized representative and acknowledged by the Participant (electronically or otherwise) and returned to the Corporation. By executing the Award Agreement, a Participant shall be deemed to
have accepted and consented to the terms of this Plan and any action taken in good faith under this Plan by and within the discretion of the Committee, the Board or their delegates. Award Agreements covering outstanding Awards may be amended or
modified by the Committee in any manner that may be permitted for the grant of Awards under the Plan, subject to the consent of the Participant to the extent provided in the Award Agreement. In accordance with such procedures as the Corporation may
prescribe, a Participant may sign or otherwise execute an Award Agreement and may consent to amendments of modifications of Award Agreements covering outstanding Awards by electronic means. 

 

	15.	GENERAL PROVISIONS 

15.1. No Assignment or Transfer; Beneficiaries. Except as provided in Section 6.5 hereof, Awards under the Plan shall not be
assignable or transferable, except by will or by the laws of descent and distribution, and during the lifetime of a Participant the Award shall be exercised only by such Participant or by his guardian or legal representative. Notwithstanding the
foregoing, the Committee may provide in the terms of an Award Agreement that the Participant shall have the right to designate a beneficiary or beneficiaries who shall be entitled to any rights, payments or other specified benefits under an Award
following the Participant’s death. 

  
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 15.2. Deferrals of Payment. At the discretion of the Committee, a Participant may
elect in writing to defer the receipt of payment of cash or delivery of shares of Common Stock that would otherwise be due to the Participant by virtue of the exercise of a right or the satisfaction of vesting or other conditions with respect to an
Award; provided, however, that (i) such election will not take effect until at least twelve (12) months after the date upon which the election is made by the Participant, (ii) except in the case of payment of account of the
Participant’s death or disability (within the meaning of Code Section 409A), the payment with respect to which such election is made must be deferred for a period of not less than five (5) years from the date the payment would
otherwise have been paid, and (iii) such election cannot be made at a time less than twelve (12) months prior to the date the payment was otherwise scheduled to be made. Any subsequent deferral election made by the Participant pursuant to
this Section 15.2 must be consistent with the requirements of Code Section 409A. This Section 15.2 shall not apply to an Option or a Stock Appreciation Right issued under the Plan. 

15.3. Rights as Shareholder. A Participant shall have no rights as a holder of Common Stock with respect to any unissued
securities covered by an Award until the date the Participant becomes the holder of record of those securities. Except as provided in Section 3.2 or Section 8.4 hereof, no adjustment or other provision shall be made for dividends or other
shareholder rights, except to the extent that the Award Agreement provides for Dividend Equivalents, dividend payments or similar economic benefits. 
 15.4. Employment or Service. Nothing in the Plan, in the grant of any Award or in any Award Agreement shall confer upon any Eligible Person the right to continue in the capacity in which he is
employed by or otherwise serves the Corporation or any Subsidiary. 
 15.5. Securities Laws. No shares of Common Stock
will be issued or transferred pursuant to an Award unless and until all then applicable requirements imposed by federal and state securities and other laws, rules and regulations and by any regulatory agencies having jurisdiction, and by any stock
exchanges upon which the Common Stock may be listed, have been fully met. As a condition precedent to the issuance of shares pursuant to the grant or exercise of an Award, the Corporation may require the Participant to take any reasonable action to
meet such requirements. The Committee may impose such conditions on any shares of Common Stock issuable under the Plan as it may deem advisable, including, without limitation, restrictions under the Securities Act of 1933, as amended, under the
requirements of any stock exchange upon which such shares of the same class are then listed, and under any blue sky or other securities laws applicable to such shares. 
 15.6. Tax Withholding. The Participant shall be responsible for payment of any taxes or similar charges required by law to be withheld from an Award or an amount paid in satisfaction of an Award,
which shall be paid by the Participant on or prior to the payment or other event that results in taxable income in respect of an Award. The Award Agreement shall specify the manner in which the withholding obligation shall be satisfied with respect
to the particular type of Award, provided that, if shares of Common Stock are withheld from delivery upon exercise of an Option or a Stock Appreciation Right, the Fair Market Value of the shares withheld shall not exceed, as of the time the
withholding occurs, the minimum amount of tax for which withholding is required. 
 15.7. Unfunded Plan. The adoption of
this Plan and any setting aside of cash amounts or shares of Common Stock by the Corporation with which to discharge its obligations hereunder shall not be deemed to create a trust or other funded arrangement. The benefits provided under this Plan
shall be a general, unsecured obligation of the Corporation payable solely from the general assets of the Corporation, and neither a Participant nor the Participant’s permitted transferees or estate shall have any interest in any assets of the
Corporation by virtue of this Plan, except as a general unsecured creditor of the Corporation. Notwithstanding the foregoing, the Corporation shall have the right to implement or set aside funds in a grantor trust subject to the claims of the
Corporation’s creditors to discharge its obligations under the Plan. 
 15.8. Other Compensation and Benefit Plans.
The adoption of the Plan shall not affect any other stock incentive or other compensation plans in effect for the Corporation or any Subsidiary, nor shall the Plan preclude the Corporation from establishing any other forms of stock incentive or
other compensation for employees of the 

  
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Corporation or any Subsidiary. The amount of any compensation deemed to be received by Participant pursuant to an Award shall not constitute compensation with respect to which any other employee
benefits of such Participant are determined, including, without limitation, benefits under any bonus, pension, profit sharing, life insurance or salary continuation plan, except as otherwise specifically provided by the terms of such plan.

 15.9. Plan Binding on Successors. The Plan shall be binding upon the Corporation, its successors and assigns, and the
Participant, his executor, administrator and permitted transferees and beneficiaries. 
 15.10. Construction and
Interpretation. Whenever used herein, nouns in the singular shall include the plural, and the masculine pronoun shall include the feminine gender. Headings of Articles and Sections hereof are inserted for convenience and reference and constitute
no part of the Plan. 
 15.11. Severability. If any provision of the Plan or any Award Agreement shall be determined to
be illegal or unenforceable by any court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any other
jurisdiction. 
 15.12. Governing Law. The validity and construction of this Plan and of the Award Agreements shall be
governed by the laws of the State of Delaware. 
 15.13. Non-U.S. Employees. In order to facilitate the making of any
grant or combination of grants under this Plan, the Committee may provide for such special terms for awards to Participants who are foreign nationals, who are employed by the Corporation or any Subsidiary outside of the United States of America or
who provide services to the Corporation under an agreement with a foreign nation or agency, as the Committee may consider necessary or appropriate to accommodate differences in local law, tax policy or custom. Moreover, the Committee may approve
such supplements to, or amendments, restatements or alternative versions of, this Plan as it may consider necessary or appropriate for such purposes without thereby affecting the terms of this Plan as in effect for any other purpose, and the
Secretary or other appropriate officer of the Corporation may certify any such document as having been approved and adopted in the same manner as this Plan. No such special terms, supplements, amendments or restatements shall include any provisions
that are inconsistent with the terms of this Plan as then in effect unless this Plan could have been amended to eliminate such inconsistency without further approval by the shareholders of the Corporation. 

15.14. Compliance with Section 409A of the Code. This Plan is intended to comply and shall be administered in a manner
that is intended to comply with section 409A of the Code and shall be construed and interpreted in accordance with such intent. To the extent that an Award, issuance and/or payment is subject to section 409A of the Code, it shall be awarded and/or
issued or paid in a manner that will comply with section 409A of the Code, including proposed, temporary or final regulations or any other guidance issued by the Secretary of the Treasury and the Internal Revenue Service with respect thereto. To the
extent any terms of the Plan or Award Agreements are ambiguous, such terms shall be interpreted as necessary to comply with section 409A of the Code. 
 15.15. Converted Duke Energy Awards. In connection with the separation of the corporation from Duke Energy, the Corporation was authorized to issue Awards (“Conversion Awards”) in
connection with the equitable adjustment by Duke Energy of certain stock options, performance shares, phantom stock awards, restricted stock awards and other equity-based awards previously granted by Duke Energy (collectively, the “Duke Energy
Awards”). Notwithstanding any other provision of the Plan to the contrary, including but not limited to Sections 5, 6.2 and 7.3, and in any event in accordance with a formula for the conversion of Duke Energy Awards determined by the
Corporation in its sole discretion consistent with the terms of the Employee Matters Agreement entered into in connection with the separation of the Corporation from Duke Energy, (i) the number of shares to be subject to a Conversion Award was
determined by the Committee and (ii) the other terms and conditions of each Conversion Award, including option exercise price, was determined by the Committee. 

  
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 15.16. Six Month Delay. Notwithstanding any provision in this Plan to the
contrary, if the payment of any benefit herein would be subject to additional taxes and interest under Code Section 409A because the timing of such payment is not delayed as required under Section 409A for a Specified Employee, then any
such payment that the Participant would otherwise be entitled to receive during the first six months following the date of Participant’s separation from service shall be accumulated and paid within fifteen (15) business days after the date
that is six months following the date of the participant’s separation from service, or such earlier date upon which such amount can be paid under Code Section 409A without being subject to such additional taxes and interest. 

15.17. Clawback. Notwithstanding anything in the Plan to the contrary, the Corporation will be entitled to the extent permitted or
required by applicable law or Company policy as in effect from time to time to include in any Award Agreement the Corporation’s right to recoup compensation of whatever kind paid by the Corporation or any of its affiliates at any time to a
Participant under this Plan. 
  

	16.	EFFECTIVE DATE, TERMINATION AND AMENDMENT 

 16.1. Effective Date. The Effective Date of the amended and restated Plan shall be the date of approval by the Corporation’s shareholders. 

16.2. Termination. The Plan shall terminate on the date immediately preceding the tenth anniversary of the Effective Date. The
Board may, in its sole discretion and at any earlier date, terminate the Plan. Notwithstanding the foregoing, no termination of the Plan shall in any manner affect any Award theretofore granted without the consent of the Participant or the permitted
transferee of the Award. 
 16.3. Amendment. The Board may at any time and from time to time and in any respect, amend or
modify the Plan; provided, however, that no amendment or modification of the Plan shall be effective without the consent of the Corporation’s shareholders that would (i) change the class of Eligible Persons under the Plan,
(ii) increase the number of shares of Common Stock reserved for issuance under the Plan or for certain types of Awards under Section 3.1 hereof, or (iii) allow the grant of SARs or Options at an exercise price below Fair Market Value,
or allow the repricing of SARs or Options without shareholder approval. In addition, the Board may seek the approval of any amendment or modification by the Corporation’s shareholders to the extent it deems necessary or advisable in its sole
discretion for purposes of compliance with Section 162(m) or section 422 of the Code, the listing requirements of the New York Stock Exchange or for any other purpose. No amendment or modification of the Plan shall materially adversely affect
any Award theretofore granted without the consent of the Participant or the permitted transferee of the Award. 
 IN WITNESS OF its amendment and restatement by the Board on February 22, 2011, this Plan is executed on behalf of the Corporation this 8th day of March, 2011. 

 

			
	SPECTRA ENERGY CORP
		
	By: 	 	    /s/ Dorothy M. Ables
		 	  Chief Administrative Officer

  
 15

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