Document:

SE-2014.03.31 Ex10.2

SPECTRA ENERGY CORP
PERFORMANCE SHARE AWARD AGREEMENT

This Performance Share Award Agreement (the “Agreement”) has been made as of __________ ___,         (the “Date of Grant”) between Spectra Energy Corp, a Delaware Company, with its principal offices in Houston, Texas (the “Company”), and __________ (the “Grantee”).

RECITALS
Under the amended and restated Spectra Energy Corp 2007 Long-Term Incentive Plan as it may, from time to time, be amended (the “Plan”), the Compensation Committee of the Board of Directors of the Company (the “Committee”), or its delegatee, has determined the form of this Agreement and selected the Grantee, as an Employee, to receive the award evidenced by this Agreement (which also includes Schedule A hereto or Schedule B hereto, as applicable to the Grantee) (the “Award”) and the Performance Share units and tandem Dividend Equivalents that are subject hereto.  Awards are not intended for employees who have given notice of resignation or who have been given notice of termination by the Company or an employing Subsidiary, and will not accrue to employees once such notices are given.  For clarity, Awards do not accrue for employees who have received notice, given notice or have been determined to be entitled to a notice period by a court, and no damages suffered by an employee due to lack of sufficient notice will include compensation for loss of vesting rights or accrual of an Award, notwithstanding any statutory, contractual, or common law period of notice of termination, or compensation in lieu of such notice, to which an employee may be entitled.  The applicable provisions of the Plan are incorporated in this Agreement by reference, including the definitions of terms contained in the Plan (unless such terms are otherwise defined herein).

AWARD

In accordance with the Plan, the Company has made this Award, effective as of the Date of Grant and upon the following terms and conditions:

Section 1.    Number and Nature of Performance Share Units and Tandem Dividend Equivalents.  The number of Performance Share units and the number of tandem Dividend Equivalents subject to this Award are each __________ (______).  Each Performance Share unit, upon becoming vested before its expiration, represents a right to receive payment in the form of one (1) share of Common Stock.  Each tandem Dividend Equivalent, after its tandem Performance Share unit vests, represents a right to receive a cash payment equivalent in amount to the aggregate cash dividends declared and paid on one (1) share of Common Stock for the period beginning on the Date of Grant and ending on the date such Dividend Equivalent expires.  Each tandem Performance Share unit, consisting of both the Performance Share unit and the tandem 

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Dividend Equivalents, is either paid or is deferred in accordance with procedures established by the Committee that comply with the requirements of Code Section 409A, if applicable.  Performance Share units and Dividend Equivalents are used solely as units of measurement, and are not shares of Common Stock, and the Grantee is not, and has no rights as, a shareholder of the Company by virtue of this Award.

Section 2.    Vesting of Performance Share Units.  (a) Provided that Grantee’s continuous employment by the Company, including Subsidiaries, has not terminated, or as otherwise provided in Sections 2(b) or 2(c), Performance Share units subject to this Award shall become vested upon the written certification by the Committee, or its delegatee, in its sole discretion, of the achievement of the Performance Goal, which is the Company’s Total Shareholder Return (“TSR”) relative to the TSR of the peer group of companies listed on Exhibit A to this Agreement (the “Peer Group”), for the period beginning January 1, 2014 and ending December 31, 2016 (“Performance Period”), at, or above, the 30th percentile, in accordance with the applicable vesting percentage specified for such percentile ranking in the following schedule: 

	
		
	Percentile Ranking
	Vesting Percentage

	 
	 

	Lower than 30th
	0%

	30th
	50%

	*
	*

	50th
	100%

	*
	*

	80th or higher
	200%

*When such determination is of a percentile ranking between those specified, such results will be interpolated on a straight-line basis to determine the applicable vesting percentage.

All Performance Share units that do not become vested upon the written certification by the Committee, or its delegatee, in its sole discretion, or as otherwise provided in Sections 2(b) or 2(c), shall be forfeited.  For the purposes of this Agreement, TSR shall be calculated using the formula Percent TSR = ((B*(1 + C) / A) -1), where the values of A, B and C are as follows:

A = average closing price of one (1) share on the NYSE on the twenty (20) consecutive trading days ending on December 31, 2013;

B = average closing price of one (1) share on the NYSE on the twenty (20) consecutive trading days ending on December 31, 2016; and

C = based on one (1) share purchased at the beginning of the Performance Period and the number of additional shares acquired through the reinvestment of dividends paid during the Performance Period.

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In addition, when calculating TSR for the Performance Period, (i) the performance of a company in the Peer Group will not be used in calculating the Peer Group’s TSR if the company is not publicly traded (i.e., has no ticker symbol) at the end of the Performance Period; (ii) the performance of any company in the Peer Group that becomes bankrupt during the Performance Period will be included in the calculation of peer group performance even if it has no ticker symbol at the end of the Performance Period; (iii) the performance of the surviving entity(s) will be used in the event there is a combination of any of the Peer Group companies during the Performance Period; (iv) no new companies will be added to the Peer Group during the Performance Period (including a non-peer company that may acquire a member of the Peer Group); and (v) the Committee retains discretion to reduce Performance Awards that were otherwise earned in the event that the Company’s TSR during the Performance Period is negative.

(b) In the event that, prior to the date that the determination of the achievement of the Performance Goal is made, the Grantee’s continuous employment by the Company, including Subsidiaries, terminates, the Performance Share units subject to this Award shall be forfeited, except that if such employment terminates (i) at a time when Grantee is eligible for an immediately payable early or normal retirement benefit under the Spectra Energy Retirement Cash Balance Plan or under another retirement plan of the Company or a Subsidiary, which plan the Committee, or its delegatee, in its sole discretion, determines to be the functional equivalent of the Spectra Energy Retirement Cash Balance Plan (“Functional Equivalent Plan”), unless the Committee, or its delegatee, in its sole discretion, determines that (A) Grantee is in violation of any obligation identified in Section 3 or (B) the termination of Grantee’s employment is for Cause, (ii) as the result of the termination of such employment by the Company, or employing Subsidiary, other than for Cause, as determined by the Company or employing Subsidiary, in its sole discretion, or (iii) as the direct and sole result, as determined by the Company, or employing Subsidiary, in its sole discretion, of the divestiture of assets, a business, or a company, by the Company or a Subsidiary, the Performance Share units subject to this Award shall be prorated on the basis of the portion of the Performance Period that Grantee’s active employment with the Company, including Subsidiaries, (“Active Employment”) continued (unless such termination occurs after the end of the Performance Period, in which event the number of Performance Share units earned, if any, shall not be prorated) and shall vest upon such determination of the achievement of the Performance Goal, at such vesting percentage determined by the Committee, or its delegate.  Solely for purposes of calculating the prorated payment in the preceding sentence, if the Grantee’s Active Employment continued for at least one (1) day during a calendar month in the Performance Period, Grantee’s Active Employment shall be considered to have continued for the entirety of such month, but in no event for more than thirty-six (36) months.  The additional provisions of Section 1 of Schedule B hereto are also incorporated herein if Schedule B is applicable to the Grantee.  For the purposes of this Agreement, “Cause” for termination by the Company, or employing Subsidiary, of the Grantee’s employment shall include (i) a material failure by the Grantee to carry out, or malfeasance or gross insubordination in carrying out, reasonably assigned duties or instructions consistent with the Grantee’s position, (ii) the final conviction of the Grantee of a (A) felony, (B)  

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crime or criminal offense involving moral turpitude, or (C) criminal or summary conviction offense that is related to the Grantee’s employment with the Company or an employing Subsidiary, (iii) an egregious act of dishonesty by the Grantee (including, without limitation, theft or embezzlement) in connection with employment, or a malicious action by the Grantee toward the customers or employees of the Company or any affiliate, (iv) a material breach by the Grantee of the Company’s Code of Business Ethics, (v) the failure of the Grantee to cooperate fully with governmental investigations involving the Company or its affiliates, or (vi) the usual meaning of just cause under Canadian common law, if applicable; all as determined by the Company in its sole discretion.  Further, if Grantee voluntarily terminates employment with the Company, including Subsidiaries, after the Performance Period has ended and prior to the date that the determination of the achievement of the Performance Goal is made, all as determined by the Company, or employing Subsidiary, in its sole discretion, the Performance Share units subject to this Award shall vest upon such determination of the achievement of the Performance Goal, at such vesting percentage determined by the Committee, or its delegate.

(c) In the event that (i) Grantee’s employment with the Company, including Subsidiaries, terminates before the Performance Period has ended (i.e., on or before the last day of the Performance Period) (A) as the result of the Grantee’s death, or (B) as the result of the Grantee’s “permanent and total disability” as defined in Section 1 of Schedule A hereto or Section 2 of Schedule B hereto, as applicable to the Grantee, or (ii) a Change in Control occurs before the Performance Period has ended and (A) before the Grantee’s continuous employment by the Company, including Subsidiaries, terminates, or (B) after such employment terminates during the Performance Period, (1) at a time when Grantee is eligible for an immediately payable, early or normal retirement benefit under the Spectra Energy Retirement Cash Balance Plan or Functional Equivalent Plan, unless the Company, or its successor, in its sole discretion, determines that Grantee is in violation of any obligation identified in Section 3, or (2) as the result of an event listed in item (ii) of the first sentence of Section 2(b), the Performance Share units subject to this Award shall vest upon such occurrence, at the 100% vesting percentage, irrespective of any subsequent determination of the achievement of the Performance Goal.  In the event that (i) Grantee’s employment with the Company, including Subsidiaries, terminates after the Performance Period has ended (A) as the result of the Grantee’s death, or (B) as the result of the Grantee’s “permanent and total disability” as defined in Section 1 of Schedule A hereto or Section 2 of Schedule B hereto, as applicable to the Grantee, all as determined by the Company, or employing Subsidiary, in its sole discretion, the Performance Share units subject to this Award shall vest upon such determination of the achievement of the Performance Goal, at such vesting percentage determined by the Committee, or its delegatee.  For the purposes of this Agreement, “Change in Control” means: 

		
	(1)
	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”) becomes the beneficial owner (within the meaning of Rule 13d‐3 promulgated under the Exchange Act) of 30% or more of either (A) the 

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then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (B) 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 (1), 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 any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary or (iv) any acquisition pursuant to a transaction that complies with Subsections (3)(A), (3)(B) and (3)(C) below;
		
	(2)
	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 was 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;

		
	(3)
	Consummation of a reorganization, merger, statutory share exchange or consolidation or similar transaction involving the Company or any of its Subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or securities of another entity by the Company or any of its Subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination, (A) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock (or, for a non-corporate entity, equivalent securities) and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors (or, for a non-corporate entity, equivalent governing body), as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, 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 the Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any parent or other entity resulting from such Business Combination or any employee benefit plan (or related trust) of the Company or such entity resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of, respectively, the then-outstanding 

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shares of common stock (or, for a non-corporate entity, equivalent securities) of the entity resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such entity, except to the extent that such ownership existed prior to the Business Combination, and (C) at least a majority of the members of the board of directors (or, for a non-corporate entity, equivalent governing body) of the entity 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 
		
	(4)
	Approval by the shareholders of the Company of a complete liquidation or dissolution of the Company.

Notwithstanding anything in the foregoing to the contrary, with respect to compensation (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 Company, or in the ownership of a substantial portion of the Company 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 Company.
Further, by acceptance of, and in consideration of receipt of, this Award, Grantee hereby agrees and acknowledges that, effective as of the date hereof, with respect to any awards granted to Grantee under the Plan prior to the date hereof that are outstanding as of the date hereof, the definition of “Change in Control” shall be the definition of “Change in Control” as set forth in this Section 2(c).

Section 3.    Violation of Grantee Obligation.  In consideration of the continued vesting opportunity provided under Section 2 following the termination of Grantee’s continuous employment by the Company, including Subsidiaries, if, at any time of such termination of employment, Grantee is eligible for an immediately payable early or normal retirement benefit under the Spectra Energy Retirement Cash Balance Plan or Functional Equivalent Plan, Grantee agrees to the noncompetition and other restrictions set forth in Section 2 of Schedule A hereto or Section 3 of Schedule B hereto, as applicable to the Grantee.  

Section 4.    Forfeiture/Expiration.  Any Performance Share unit subject to this Award shall be forfeited upon the termination of the Grantee’s continuous employment by the Company, including Subsidiaries, from the Date of Grant, except to the extent otherwise provided in Section 2, and, if not previously vested and paid, or deferred, or forfeited, shall expire immediately before the tenth (10th) anniversary of the Date of Grant.  The additional provisions of Section 4 of Schedule B hereto are also incorporated herein if Schedule B is applicable to the Grantee.  Any Dividend Equivalent subject to this Award shall expire at the time its tandem Performance Share unit (i) is vested and paid, or deferred, (ii) is forfeited, or (iii) expires.

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Section 5.    Dividend Equivalent Payment.  Payment with respect to any Dividend Equivalent subject to this Award that is in tandem with a Performance Share unit that is vested and paid shall be paid in cash to the Grantee as soon as practicable following the vesting and payment of the Performance Share unit and in no event later than the end of the third calendar year following the year of the Date of Grant, except, if the vested Performance Share unit is deferred by Grantee as provided in Section 6, payment with respect to the tandem Dividend Equivalent shall likewise be deferred.  Payment under this Section 5 shall be made not later than thirty (30) days after payment hereunder of the related tandem Performance Share units.  The Dividend Equivalent payment amount shall equal the aggregate cash dividends declared and paid with respect to one (1) share of Common Stock for the period beginning on the Date of Grant and ending on the date the vested, tandem Performance Share unit is paid or deferred and before the Dividend Equivalent expires.  However, should the Grantee receive shares under this Award without the right to receive a dividend and, because of the timing of the declaration of such dividend, the Grantee is not otherwise entitled to payment under the expiring Dividend Equivalent with respect to such dividend, the Grantee, nevertheless, shall be entitled to such payment.  Dividend Equivalent payments shall be subject to withholding for taxes.  

Section 6.    Payment of Performance Share Units.  Payment of Performance Share units subject to this Award shall be made to the Grantee in a single lump sum payment as soon as practicable following the time such Performance Share units become vested in accordance with Section 2 prior to their expiration but in no event later than thirty (30) days following such vesting event and in no event later than the end of the third calendar year following the year of the Date of Grant, except to the extent deferred by the Grantee in accordance with such procedures as the Committee, or its designee, may prescribe that comply with the requirements of Code Section 409A, or any Canadian law equivalent, if applicable.  Any deferral of Performance Share units hereunder shall apply to both payment of Performance Share units and the related tandem Dividend Equivalents. Payment shall be subject to withholding for taxes. Payment shall be in the form of one (1) share of Common Stock for each full vested Performance Share unit, and any fractional vested Performance Share unit shall be rounded up to the next whole share for purposes of both vesting under Section 2 and payment under this Section 6.  Notwithstanding the foregoing, the number of shares of Common Stock that would otherwise be paid (valued at Fair Market Value on the date the respective Performance Share units became vested) shall be reduced by the Committee, or its delegatee, in its sole discretion, to fully satisfy any tax required to be withheld, unless the Company, or employing Subsidiary, as applicable, and the Grantee agree that such tax obligations will instead be satisfied by the Grantee timely tendering to the Company, or employing Subsidiary, as applicable, sufficient cash to satisfy such obligations and the Grantee does timely tender such cash.  In the event that payment, after any such reduction in the number of shares of Common Stock to satisfy withholding for tax requirements, would be for less than ten (10) shares of Common Stock, then, if so determined by the Committee, or its delegatee, in its sole discretion, payment, instead of being made in shares of Common Stock, shall be made in a cash amount equal in value to the shares of Common Stock that would otherwise be paid, 

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valued at Fair Market Value on the date the respective Performance Share units became vested.

Section 7.    No Employment Right.  Nothing in this Agreement or in the Plan shall confer upon the Grantee the right to continued employment by the Company or any Subsidiary, or affect the right of the Company or any Subsidiary to terminate the employment or service of the Grantee at any time for any reason.

Section 8.    Nonalienation.  The Performance Share units and Dividend Equivalents subject to this Award are not assignable or transferable by Grantee.  Upon any attempt to transfer, assign, pledge, hypothecate, sell or otherwise dispose of any such Performance Share unit or Dividend Equivalent, or of any right or privilege conferred hereby, or upon the levy of any attachment or similar process upon such Performance Share unit or Dividend Equivalent, or upon such right or privilege, such Performance Share unit or Dividend Equivalent, or right or privilege, shall immediately become null and void.

Section 9.    Grantee Confidentiality Obligations.  In accepting this Performance Award, Grantee acknowledges that Grantee is obligated under Company policy, and under federal, state, provincial and other applicable law, to protect and safeguard the confidentiality of trade secrets and other proprietary and confidential information belonging to the Company and its affiliates that are acquired by Grantee during Grantee’s employment with the Company and its affiliates, and that such obligations continue beyond the termination of such employment.  Grantee agrees to notify any subsequent employer of such obligations and that the Company and its affiliates, in order to enforce such obligations, may pursue legal recourse not only against Grantee, but against a subsequent employer of Grantee.  Grantee agrees that he shall not disclose the existence or terms of this Agreement to anyone other than his spouse, tax advisor(s) and/or attorney(s), provided that he first obtains the agreement of such persons to be bound by the confidentiality provisions of this paragraph.  Grantee also agrees to immediately give the Company written notice in accordance with the provisions of this Agreement in the event he is legally required to disclose any of the confidential information covered by the provisions of this paragraph.

Section 10.  Nonsolicitation. Grantee further agrees that he will not, either directly or indirectly, solicit, hire or employ, or cause any other person, company, or entity to solicit, hire or employ, any employee or contractor retained or employed by the Company or its affiliates during the period of Grantee’s employment and for the period set forth in Section 3 of Schedule A hereto or Section 5 of Schedule B hereto, as applicable to the Grantee. The provisions of this paragraph shall not apply to contact initiated by an employee or contractor of the Company or its affiliates in response to a general solicitation of applications for employment.  Grantee agrees that this Agreement is subject to the provisions of this paragraph.

Section 11.  Notices.  All notices under this Agreement shall be mailed or delivered by hand to the parties at their respective addresses set forth beneath their 

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signatures below or at such other address as may be designated in writing by either party to the other party, or to their permitted transferees if applicable.  Notices shall be effective upon receipt.

Section 12.    Payments Subject to Clawback.  To the extent that any payment under this Agreement is subject to clawback under Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, as it may be amended from time to time, such amount will be clawed back in appropriate circumstances, as determined under the terms and conditions prescribed by such Act and the authority issued thereunder.

Section 13.    Determinations.  Determinations by the Committee, or its delegatee, shall be final and conclusive with respect to the interpretation of the Plan and this Agreement.

Section 14.    Governing Law and Severability.  The validity and construction of this Agreement shall be governed, construed and enforced in accordance with the laws of the State of Delaware applicable to transactions that take place entirely within that state.  The invalidity of any provision of this Agreement shall not affect any other provision of this Agreement, which shall remain in full force and effect.
    
Section 15.  Code Section 409A.  Notwithstanding any provision of this Agreement to the contrary, for purposes of this Agreement, the termination of Grantee’s employment shall not result in the payment of any amount hereunder that is subject to, and not exempt from, Code Section 409A, unless such termination of employment constitutes a “separation from service” as defined under Code Section 409A. Further, notwithstanding any provision of this Agreement to the contrary, if any payment or other benefit provided herein would be subject to unfavorable tax consequences under Code Section 409A because the timing of such payment is not delayed as provided in Code Section 409A for a “specified employee” (within the meaning of Code Section 409A), then if the Grantee is a “specified employee,” any such payment that the Grantee would otherwise be entitled to receive during the first six (6) months following Grantee’s termination of employment from the Company, shall be accumulated and paid, within thirty (30) days after the date that is six (6) months following the Grantee’s date of termination of employment from the Company, or such earlier date upon which such amount can be paid under Code Section 409A without being subject to such unfavorable tax consequences such as, for example, upon the Grantee’s death.

Section 16.    Conflicts with Plan, Correction of Errors, Grantee’s Consent, and Amendments.  In the event that any provision of this Agreement conflicts in any way with a provision of the Plan, such Plan provision shall be controlling and the applicable provision of this Agreement shall be without force and effect to the extent necessary to cause such Plan provision to be controlling.  In the event that, due to administrative error, this Agreement does not accurately reflect an Award properly granted to the Grantee pursuant to the Plan, the Company, acting through its Executive Compensation Department, reserves the right to cancel any erroneous document and, if appropriate, to replace the cancelled document with a corrected document.  It is the intention of the 

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Company and the Grantee that this Agreement either (i) comply with the salary deferral arrangement rules under Canadian law and Code Section 409A, as applicable, or (ii) not be construed as a salary deferral arrangement under Canadian law and be exempt from Code Section 409A, to the extent applicable.  Accordingly, this Agreement shall be interpreted as necessary and to the extent legally permissible to comply with the requirements of, or exemption under, Canadian law and Code Section 409A, as applicable, as determined by the Committee or its delegate.  Grantee shall also be deemed to consent to any amendment of the Plan or the Agreement as the Committee may reasonably make in furtherance of such intention, and the Committee shall promptly provide, or make available to, the Grantee a copy of any such amendment.
Finally, this Agreement may be amended or modified at any time and from time to time by action of the Committee.   

Section 17.  Equitable Remedies.  Grantee hereby acknowledges and agrees that a breach of Grantee’s obligations under this Agreement would result in damages to the Company that could not be adequately compensated for by monetary award.  Accordingly, in the event of any such breach by Grantee, in addition to all other remedies available to the Company at law or in equity, the Company will be entitled as a matter of right to apply to a court of competent jurisdiction for such relief by way of restraining order, injunction, decree or otherwise, as may be appropriate to ensure compliance with the provisions of this Agreement.

Section 18.  Arbitration Agreement.  The Grantee and the Company both agree that any dispute arising out of or related to this Agreement, which does not involve the Company seeking a court injunction or other relief as provided for in Section 17, shall be resolved by binding arbitration under the employment dispute resolution rules of the American Arbitration Association and that any proceeding under the provisions of this Section 18 shall be held in Houston, Texas.  The parties both irrevocably WAIVE ANY AND ALL RIGHTS TO A JURY as to any and all claims and issues in any such dispute.  By this provision, both the Grantee and the Company understand and agree that any and all claims and issues in such dispute shall be decided by such arbitration proceeding.

Notwithstanding the foregoing, this Award is subject to cancellation by the Company in its sole discretion unless the Grantee, by not later than _________  __, _____, has signed a duplicate of this Agreement, in the space provided below, and returned the signed duplicate to the Executive Compensation Department - Performance Stock (WO 1O23), Spectra Energy Corp, P. O. Box 1642, Houston, TX 77251-1642, which, if, and to the extent, permitted by the Executive Compensation Department,  may be accomplished by electronic means.
[Signature Page Follows]

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed and granted in Houston, Texas, to be effective as of the Date of Grant.

ATTEST:    SPECTRA ENERGY CORP                

By:          By:  ________________________________
       Corporate Secretary             President & CEO, Spectra Energy Corp

Address for Notices: 

5400 Westheimer Court
Mail Drop 1O23
Houston, Texas 77056

Attention: Karen Gowder

Acceptance of Performance Award
IN WITNESS OF Grantee’s acceptance of this Performance Award and Grantee’s agreement to be bound by the provisions of this Agreement and the Plan, Grantee has signed this Agreement this _____ day of _____________________, ____.

______________________________    Grantee’s Signature

______________________________    (print name)

______________________________
(employee ID)

Address for Notices:

______________________________    (address)    

______________________________    (address)    

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EXHIBIT A

The Peer Group, with their stock symbol listed, consists of the following:
                
CenterPoint Energy, Inc. (CNP)
Consolidated Edison, Inc. (ED)
Dominion Resources, Inc. (D)
DTE Energy Company (DTE)
Enbridge Inc. (ENB)
EQT Corporation (EQT)
Kinder Morgan, Inc. (KMI)
National Fuel Gas Company (NFG)
NiSource Inc. (NI)
ONEOK, Inc. (OKE)
PG&E Corporation (PCG)
Public Service Enterprise Group Incorporated (PEG)
Sempra Energy (SRE)
TransCanada Corporation (TRP)
The Williams Companies, Inc. (WMB)
Xcel Energy Inc. (XEL)

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SCHEDULE A

This Schedule A and the provisions hereof shall apply to the Grantee if (and only if) the Grantee is on the payroll of one of the Company’s directly or indirectly held or majority or greater-owned subsidiaries or affiliates that is a United States entity.

Section 1.    For purposes of Section 2(c) of the Agreement, “permanent and total disability” shall have the meaning set forth in Code Section 22(e)(3).

Section 2.    The following provisions shall apply for purposes of Section 3 of the Agreement:

Grantee agrees that during the period beginning with such termination of employment and ending with the third anniversary of the Date of Grant (“Restricted Period”), Grantee shall not (i) without the prior written consent of the Company, or its delegatee, become employed by, serve as a principal, partner, or member of the board of directors of, or in any similar capacity with, or otherwise provide service to, a competitor, to the detriment, of the Company or any Subsidiary, or (ii) violate any of Grantee's other noncompetition obligations, or any of Grantee’s nonsolicitation or nondisclosure obligations, to the Company or any Subsidiary.  The noncompetition obligations of clause (i) of the preceding sentence shall be limited in scope and shall be effective only to competition with the Company or any Subsidiary in the businesses of: gathering, processing or transmission of natural gas or crude oil, resale or arranging for the purchase or for the resale, brokering, marketing, or trading of natural gas, or derivatives thereof; gathering, compression, treating, processing, fractionation, transportation, trading, marketing of natural gas components, including natural gas liquids, or of crude oil; and sales and marketing of natural gas, domestically and abroad; and any other business in which the Company, including Subsidiaries, is engaged at the termination of Grantee’s continuous employment by the Company, including Subsidiaries; and within the following geographical areas (i) any country in the world where the Company, including Subsidiaries, has at least US$25 million in capital deployed as of termination of Grantee’s continuous employment by Company, including Subsidiaries; (ii) the continent of North America; (iii) the United States of America and Canada; (iv) the states of (A) Virginia, (B) Georgia, (C) Florida, (D) Texas, (E) California, (F) Massachusetts, (G) Illinois, (H) Michigan, (I) New York, (J) Colorado, (K) Oklahoma, (L) Kentucky, (M) Ohio, (N) Louisiana, (O) Kansas, (P) Montana, (Q) Missouri, (R) Nebraska, and (S) Wyoming; and (v) any state or states or province or provinces in which was conducted a business of the Company, including Subsidiaries, which business constituted a substantial portion of Grantee’s employment.  The Company 

2014 Performance Award Agreement - Stock     A-1    

and Grantee intend the above restrictions on competition in geographical areas to be entirely severable and independent, and any invalidity or enforceability of this provision with respect to any one or more of such restrictions, including geographical areas, shall not render this provision unenforceable as applied to any one or more of the other restrictions, including geographical areas.  If any part of this provision is held to be unenforceable because of the duration, scope or area covered, the Company and Grantee agree to modify such part, or that the court making such holding shall have the power to modify such part, to reduce its duration, scope or area, including deletion of specific words and phrases, i.e., “blue penciling”, and in its modified, reduced or blue pencil form, such part shall become enforceable and shall be enforced.  Nothing herein shall be construed to prohibit Grantee being retained during the Restricted Period in a capacity as an attorney licensed to practice law, or to restrict Grantee providing advice and counsel in such capacity, in any jurisdiction where such prohibition or restriction is contrary to law.

Section 3.    The nonsolicitation period for purposes of Section 10 of the Agreement is a period of three (3) years following Grantee’s termination of employment with the Company and its affiliates.

2014 Performance Award Agreement - Stock     A-2    

SCHEDULE B

This Schedule B and the provisions hereof shall apply to the Grantee if (and only if) the Grantee is on the payroll of one of the Company’s directly or indirectly held or majority or greater-owned subsidiaries or affiliates that is a Canadian entity.

Section 1.    The following provisions shall be incorporated immediately before the definition of “Cause” in Section 2(b) of the Agreement:  

The date that the Grantee’s continuous employment is terminated for the purposes of this Section 2(b) shall be deemed to be the date on which any notice of termination of employment provided to such Grantee is stated to be effective (or in the case of an alleged constructive dismissal, the date on which the alleged constructive dismissal is alleged to have occurred), and not during or as of the end of any period following such date during which the Grantee is in receipt of, or entitled to receive, statutory, contractual, or common law notice of termination or any compensation in lieu of such notice.  

Section 2.    For purposes of Section 2(c) of the Agreement, an individual shall be considered to have a “permanent and total disability” if the individual is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than twelve (12) months.

Section 3.    The following provisions shall apply for purposes of Section 3 of the Agreement:

Grantee agrees that during the period beginning with such termination of employment and ending with the earlier of (1) the third anniversary of the Date of Grant  or (2) the first anniversary of the date of such termination of employment (“Restricted Period”), Grantee shall not (i) without the prior written consent of the Company, or its delegatee, become employed by, serve as a principal, partner, or member of the board of directors of, or in any similar capacity with, or otherwise provide service to, a competitor, to the detriment, of the Company or any Subsidiary, or (ii) violate any of Grantee’s other noncompetition obligations, or any of Grantee’s nonsolicitation or nondisclosure obligations, to the Company or any Subsidiary.  The noncompetition obligations of clause (i) of the preceding sentence shall be limited in scope and shall be effective only to competition with the Company or any Subsidiary in the businesses of: gathering, processing or transmission of natural gas or crude oil, resale or arranging for the purchase or for the resale, brokering, marketing, or 

2014 Performance Award Agreement - Stock     B-1    

trading of natural gas, or derivatives thereof; gathering, compression, treating, processing, fractionation, transportation, trading, marketing of natural gas components, including natural gas liquids, or of crude oil; and sales and marketing of natural gas, domestically and abroad; and any other business in which the Company, including Subsidiaries, is engaged at the termination of Grantee’s continuous employment by the Company, including Subsidiaries; and within the geographical area of the province in which Grantee was employed at termination of employment from the Company and employing Subsidiaries.  If any part of this provision is held to be unenforceable because of the duration, scope or area covered, the Company and Grantee agree to modify such part, or that the court making such holding shall have the power to modify such part, to reduce its duration, scope or area, including deletion of specific words and phrases, i.e., “blue penciling”, and in its modified, reduced or blue pencil form, such part shall become enforceable and shall be enforced.  Nothing herein shall be construed to prohibit Grantee being retained during the Restricted Period in a capacity as an attorney licensed to practice law, or to restrict Grantee providing advice and counsel in such capacity, in any jurisdiction where such prohibition or restriction is contrary to law.

Section 4.    The following provisions shall be incorporated after the first sentence in Section 4 of the Agreement:  

The date of the termination of Grantee’s continuous employment with the Company, including Subsidiaries, for the purposes of this Section 4 shall be deemed to be the date on which any notice of termination of employment provided to or by such Grantee is stated to be effective (or in the case of an alleged constructive dismissal, the date on which the alleged constructive dismissal is alleged to have occurred), and not during or as of the end of any period following such date during which the Grantee is in receipt of, or entitled to receive, statutory, contractual, or common law notice of termination or any compensation in lieu of such notice.  

Section 5.    The nonsolicitation period for purposes of Section 10 of the Agreement is a period of one (1) year following Grantee’s termination of employment with the Company and its affiliates.

2014 Performance Award Agreement - Stock     B-2Exhibit 4.3

    
RULES OF THE
SEADRILL LIMITED
RESTRICTED STOCK UNIT PLAN

Adopted on October 1, 2013 

SEADRILL LIMITED
RULES OF THE RESTRICTED STOCK UNIT PLAN

		
	1.
	DEFINITIONS

		
	1.1
	In this Plan the following words and expressions shall, where the context so permits, have the following meanings:

“Adoption Date” means the date on which this Plan is approved and adopted by the Board;
“Award” means a conditional right to receive Shares awarded to an Eligible Person pursuant to this Plan, such Shares to be issued or transferred to the Award Holder on or following the Vesting of the Award;
“Award Certificate” means a certificate issued by the Company to the Award Holder evidencing the title of the Award Holder to the Award;
“Award Holder” means an Eligible Person or a former Eligible Person who is the holder of an Award which has neither fully Vested nor lapsed and, where the context so permits, a person entitled to rights under any such Award in consequence of the death of the original Award Holder;
“Board” means the board of directors of the Company or the directors present at a duly convened meeting of the board of directors or of a duly constituted committee of the board of directors at which a quorum is present;
“Change of Control” means any one of the following events: (i) a merger, amalgamation or consolidation in which the Company is not the surviving entity; (ii) (a)    any person (or group of persons acting in concert) other than Hemen Holding Ltd. acquires more than fifty per cent (50.00%) of the voting rights in the Company; or (iii) the direct or indirect sale, lease, transfer, conveyance or other disposition of all or substantially all of the properties or assets of the Company;
“Company” means Seadrill Limited, registered in Bermuda;
“Date of Grant” means the date on which the Board resolves to make an Award under Clause 2 of this Plan;
“Dealing Restriction” means a restriction on dealings in Shares imposed by any law, regulation, order or directive or by the rules applying to any listing of the Company, the Insider Trading Regulations of the Company and/or any other code adopted by the Company;
“Dividend Equivalent” means a notional cash amount accruing in respect of an Award calculated in accordance with Clause 4;
“Eligible Person” means an employee who is, or who becomes, contracted to work at least 20 hours per week in the service of one or more Participating Companies or a director or officer of a Participating Company;
“Good Leaver” means an Award Holder ceasing to be employed by a Relevant Company by reason of (i) an involuntary termination due to the Award Holder’s injury, ill-health or disability (provided that the Board determines in its sole discretion within 30 days of his cessation of employment that the individual is incapable of exercising his employment due to injury, ill-health or disability and is likely to remain so incapable for the foreseeable future) or (ii)  an involuntary termination due to job elimination  or an internal business reorganization or (iii) for any other reason if the Board determines in its discretion within 30 days of his cessation of employment that the Award Holder should be treated as a Good Leaver;
“Group” means the Company and the Subsidiaries;
“Participating Company” means the Company and any Subsidiary;
“Plan” means this Restricted Stock Unit Plan;
“Relevant Company” means (i) a Participating Company or, if applicable, where the Award Holder’s employing company or business has been sold or transferred in whole or in part and the Award Holder has retained his Award (ii) the relevant former Subsidiary or (iii) the relevant employing company that acquires the business formerly carried on by the relevant Participating Company;
“Rules” means these rules as varied from time to time in accordance with Clause 8;

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“Section 409A” means Section 409A of the U.S. Internal Revenue Code of 1986 and regulations and guidance promulgated under it;
“Shares” means fully paid ordinary shares of par value US$2 each in the capital of the Company or, as the context may require, shares for the time being representing or deriving from the same following a reorganization or increase of the Company’s share capital;
“Special Dividend” means a dividend which the Board has determined to be a special dividend for the purposes of Clause 4.2;
“Subsidiary” means a company, which for the time being, is a subsidiary of the Company within the definition contained in Section 86 of the Companies Act 1981 of Bermuda, as amended from time to time;
“Tax Liability” means any tax, duties, social security contributions, social taxes and/or similar liabilities (but excluding employer’s social security) relating to an individual’s participation in this Plan or Shares obtained under this Plan to the extent that any person other than the individual is liable to account to the appropriate authorities for such tax or other amount. For the avoidance of doubt, the Tax Liability is the minimum statutory withholding (or other similar obligation) that the employer or other person is required to make or otherwise account for to the appropriate authorities;
“Vest” means that an Award Holder becomes unconditionally entitled to an issue or transfer of Shares in satisfaction of an Award (on the basis that an Award may Vest in full or in part) and “Vesting” and “Vested” shall be construed accordingly; and
“Vesting Date” means the date or dates on which an Award will normally Vest and is the date or dates the Board, in its discretion, may prescribe from time to time when an Award is made.
		
	1.2
	In this Plan except in so far as the context otherwise requires:

		
	a.
	words denoting the singular number shall include the plural number and words denoting the masculine gender shall include the feminine gender; and

		
	b.
	any reference to any enactment or statutory provision shall be construed as a reference to that enactment or provision as from time to time amended extended or re‐enacted.

		
	2.
	MAKING OF AWARDS

		
	2.1
	At any time after the Adoption Date but not later than the tenth anniversary of the Adoption Date the Board may, in its absolute discretion, resolve to make an Award to one or more Eligible Persons on the terms and conditions set out in the Rules and in its resolution.

		
	2.2
	Promptly following the Date of Grant the Board shall notify the relevant Eligible Persons that they have been made an Award and issue an Award Certificate.

		
	2.3
	The notice and Award Certificate given by the Board pursuant to Clause 2.2 shall be in such form, not inconsistent with these Rules, as the Board may determine and shall specify the number of Shares comprised in the Award, the Date of Grant, the Vesting Date(s) and any other relevant terms.

		
	2.4
	Not later than fourteen days following the Date of Grant, the Award Holder may, by returning the Award Certificate to the Company, renounce his rights to any Award granted pursuant to Clause 2.1, in which event such Award shall be deemed for all purposes never to have been made.

		
	3.
	MAIN TERMS

		
	3.1
	No consideration shall be payable to the Company for either the grant or Vest of an Award.

		
	3.2
	Any Award which has not lapsed shall Vest on the occurrence of the earliest of the following events:

		
	a.
	the Vesting Date;

		
	b.
	the death of the Award Holder;

		
	c.
	subject to Clauses 3.4 and 3.5, the Award Holder becoming a Good Leaver;

3

		
	d.
	a Change of Control (provided that the Award shall be deemed to Vest immediately before the Change of Control occurs); and

		
	e.
	if (and only if) the Board in its discretion so determines, upon the Award Holder’s employing company ceasing to be part of the Group or the Award Holder’s employment being transferred, as part of a business transfer, to an entity which is not part of the Group.

		
	3.3
	If a Dealing Restriction would prevent the Award Holder acquiring and/or selling Shares on the date that an Award would otherwise Vest, it shall Vest on the first date that the relevant Dealing Restriction is lifted.

		
	3.4
	For the purposes of this Plan, an Award Holder shall cease to be employed by a Relevant Company when he gives notice or is given notice of the termination of his employment such that he will no longer be an employee of a Relevant Company, provided that there are no arrangements for him to commence a new employment with any other Relevant Company. If employment terminates in other circumstances without notice, an Award Holder shall cease to be employed by a Relevant Company on the date of termination.

		
	3.5
	An Award that Vests under Clause 3.2b., 3.2c., 3.2d. or 3.2e. above (or is treated as if it had Vested for the purposes of Rule 7 below) shall only Vest pro rata on the basis of the proportion of the period commencing on the Grant Date and ending on the Vesting Date falling prior to the event; PROVIDED THAT the Board may in its discretion determine that the Award shall Vest in full or otherwise more fully than pro rata. Any part of the Award that does not Vest under this Clause 3.5 shall lapse. 

		
	3.6
	Where an Award Holder ceases to be employed by a Relevant Company for a reason other than death or becoming a Good Leaver, his Award shall lapse and become incapable of Vesting at the end of the 30 day period during which the Board may determine that he is a Good Leaver pursuant to Clause 1.1; PROVIDED THAT where this Clause 3.6 applies to an Award, where there is an event that would otherwise give rise to Vesting under Clause 3.2, the Award in question shall not Vest unless and until the Board determines that the Award Holder is a Good Leaver. 

		
	3.7
	By accepting any benefit in respect of an Award, the Award Holder agrees that the Tax Liability shall be satisfied by the retention and sale of an appropriate number of Vested Shares on his behalf unless he otherwise pays to the Company or other person nominated for this purpose an amount equal to the Tax Liability or agrees an alternative method for satisfaction of the Tax Liability with the Company.

		
	4.
	DIVIDEND EQUIVALENTS

		
	4.1
	Subject to Clause 4.2, Dividend Equivalents shall accrue in relation to dividends on the Shares that are declared and have a record date falling during the period commencing on the Grant Date and ending on the date than an Award is satisfied.

		
	4.2
	No Dividend Equivalents shall accrue in respect of any dividend that the Board has deemed to be a Special Dividend. 

		
	4.3
	Each Dividend Equivalent is a notional amount of cash equal to the amount of the dividend declared and paid on a Share (so that the aggregate Dividend Equivalents accruing to an Award shall be a cash amount equal to the dividend declared and paid on a Share multiplied by the number of shares under Award).

		
	4.4
	An Award Holder shall have no entitlement to actual dividends on the Shares comprised in his Award.

		
	4.5
	Subject to Clause 4.6 below, accrued Dividend Equivalents shall be satisfied by the Company making or procuring a cash payment (reduced to take account of any Tax Liability) to an Award Holder each year in the January payroll following the date on which the Company pays the related interim or final dividend in respect of Shares (with the first payment no earlier than January 2015), PROVIDED THAT if an Award Holder ceases to be employed by a Relevant Company other than by reason of death or as a Good Leaver any accrued but unpaid Dividend Equivalents shall immediately lapse.

		
	4.6
	If an Award Vests early under Clause 3.2b., 3.2c., 3.2d. or 3.2e. above, a Dividend Equivalent payment by reference to dividends declared and having a record date falling during the period commencing on the prior 31 December and ending on the date the Vested Award is satisfied shall be made as soon as reasonably practicable and in any event within sixty days of the Award Vesting.

4

		
	5.
	SATISFACTION OF AWARDS

		
	5.1
	An Award Holder shall not be entitled to vote, to receive dividends or to have any other rights of a shareholder of the Company in respect of Shares comprised in an Award until the issue or transfer of the Shares to him.

		
	5.2
	The Company shall, not later than sixty days after an Award Vests, allot and issue, transfer or procure the transfer to the Award Holder of such number of Shares as has Vested (subject to the right to withhold and sell Shares to satisfy any Tax Liability under Clause 3.7). Notwithstanding the foregoing, if an Award Holder is a Canadian taxpayer at any time during the period commencing at the start of the period the Award is for (or, if earlier, on the Date of Grant) and ending on the date the Award is satisfied, an Award shall be satisfied no later than three years after the end of the calendar year in which the services in respect of the Award were rendered.

		
	5.3
	A Vested Award may only be satisfied by issuing Shares if and to the extent that arrangements to issue the Shares paid up as to nominal value are made.

		
	5.4
	Notwithstanding the provisions of Clause 5.2, the Company reserves the right upon Vesting of an Award to make a cash payment in lieu of issuing Shares in circumstances where the Board considers that an issue or transfer of Shares to an Award Holder would have a materially adverse effect having regard to legal, tax, regulatory or other circumstances of the Group or the Award Holder.  The cash payment will be calculated based on the closing market price of the Shares on the New York Stock Exchange (or any other stock exchange on which the Shares are traded, chosen by the Board) on the date the Award Vests.  

		
	5.5
	Shares allotted under this Plan on Vesting of an Award shall rank pari passu in all respects with the Shares for the time being in issue save as regards any rights attaching by reference to a record date prior to the date on which the vested Award is satisfied.

		
	5.6
	For so long as the Shares are listed on the New York Stock Exchange or any other stock exchange, the Company shall apply to the appropriate authorities of such stock exchange(s) for all Shares issued or allotted under this Plan to be admitted for trading on such stock exchange on par with the other Shares. In the event that the Shares are de-listed from the New York Stock Exchange, and are not otherwise listed on an appointed stock exchange (pursuant to section 2(9) of the Companies Act 1981 of Bermuda, as amended from time to time), then the Company shall be required to apply for the consent of the Bermuda Monetary Authority to the issue, allotment or transfer of Shares under this Plan upon the Vesting of an Award. The Award Holder shall provide such information to the Company so as to enable such application to proceed as is required by the Bermuda Monetary Authority.

		
	5.7
	Shares received under this Plan will be subject to the Insider Trading Regulations of the Company or any other relevant Dealing Restrictions.

		
	6.
	ADJUSTMENTS TO AWARD RIGHTS

		
	6.1
	In the event of any variation in the share capital of the Company (including without limitation a capitalization, rights issue, open offer, sub-division, consolidation or reduction of capital, a capital distribution, demerger or other event having a material impact on the value of the Shares), the Board may make such adjustments with regard to the aggregate number of Shares subject to any Award and the terms of any Award as it considers fair and reasonable.

		
	6.2
	The Board shall give notice in writing to each Award Holder affected by any adjustment made pursuant to Clause 6.1 specifying the date on which such adjustment takes effect and may, at its discretion, deliver to him a revised Award Certificate in respect of his Award.

		
	7.
	WINDING-UP

		
	7.1
	If notice is given by the Board to the shareholders of the Company of the intention to propose the passing of a shareholders’ resolution for the voluntary winding‐up of the Company, notice of the same shall also be given by the Board to the Award Holders. 

		
	7.2
	In such event each Award Holder will be entitled to participate in the assets available in the winding‐up pari passu with the shareholders of the Company as if he were a shareholder in relation to such number of Shares to which he would have been entitled had his Award so Vested on a pro-rata basis (as provided in Clause 3.5 above and subject to the same proviso that the Board may in its discretion determine that the Award shall be treated as if it had Vested in full or otherwise more fully than pro rata). Any part of the Award that does not Vest under this Clause 7.2  shall lapse on the commencement of the winding‐up.  

5

		
	7.3
	Awards shall lapse immediately on a compulsory winding-up of the Company.

		
	8.
	VARIATION OF THE PLAN

		
	8.1
	The Board may at any time alter or add to the Rules in any respect, provided that:

		
	a.
	the Board may not cancel an Award except where (i) the Award Holder has breached the provisions of Clause 9.6 or (ii) the Award Holder has previously agreed; and

		
	b.
	the Board may not modify the terms of an Award already granted in a manner materially adverse to the Award Holder except with the consent of the Award Holder.

		
	8.2
	The Board shall give notice in writing to each Award Holder of any alteration or addition made pursuant to this Clause 8 and may, at its discretion, deliver to each Award Holder a revised Award Certificate in respect of his Award.

		
	9.
	GENERAL PROVISIONS

		
	9.1
	The Board may from time to time make and vary such regulations and establish such procedures for the administration and implementation of this Plan as it thinks fit including, without limitation, delegating the exercise of its powers and discretions in relation to this Plan to any one or more persons and appointing or engaging specialist service providers for the operation and administration of this Plan.  

		
	9.2
	In the event of any dispute or disagreement as to the interpretation of the Rules or as to the question of rights arising from or related to this Plan, the decision of the Board shall be final and binding upon all persons.

		
	9.3
	The cost of the administration and implementation of this Plan shall be borne by the Company.

		
	9.4
	By accepting any benefit in respect of an Award, an Award Holder agrees to the holding of personal information about him. He authorizes the Company and its agents and advisers or agents or advisers of the Group to use such information for all purposes relating to the operation of this Plan including, without limitation, making information available to any relevant tax authority or to any other person as the Company or other person considers reasonable. An Award Holder further agrees that agents of the Company or the Group, wherever located, may process data concerning his participation in this Plan and transmit it outside the Award Holder’s country of residence.

		
	9.5
	The rights and obligations of an Eligible Person or Award Holder under the terms on which the Eligible Person or Award Holder holds his office or employment with a Relevant Company shall not be affected by his participation in this Plan or by any right he may have to participate and this Plan shall not give rise to any rights to compensation or damages in connection with the termination of an office or employment for any reason whatsoever. Benefits under this Plan shall not be pensionable or count towards any retirement benefit provision.

		
	9.6
	The rights and obligations of an Award Holder shall be personal to the Award Holder and no Award or related benefit may be transferred, assigned, charged or otherwise alienated save that nothing in this sub‐clause shall prohibit the transmission of an Award or the related benefit by operation of law upon the death of the Award Holder.

		
	9.7
	Any notice or other document to be served by the Company under this Plan on an Eligible Person or Award Holder may be served personally, by post, email or fax or given via an intranet communications system or other electronic means to such address or number as the Company considers appropriate.

		
	9.8
	Any notice or other document to be served on the Company under this Plan may be served by an Eligible Person or Award Holder by leaving it at the registered office for the time being of the Company or by email or via an intranet communications system or by such other method as the Board determines. It shall be sent to such address or number as is notified for this purpose and shall be marked for the attention of the designated person.

		
	9.9
	References to post include, where relevant, an organization's internal post system. Items sent by external post shall be pre-paid and shall be deemed to have been received at the expiration of seven (7) days (excluding Saturdays, Sundays or public holidays in Bermuda or Norway) after the time when such item was put in the post properly addressed and stamped or at such earlier time as receipt is acknowledged. Notices sent by any method other than external post, in the absence of evidence to the contrary, shall be deemed to have been received on the day after sending.

		
	9.10
	Awards granted under this Plan to U.S. taxpayers are intended to be exempt from Section 409A as short-term deferrals within the meaning of U.S. Treasury Regulation 1. 409A-1(b)(4).  Awards granted under this Plan to U.S. taxpayers shall be interpreted in accordance with these intentions. Notwithstanding the foregoing, the Award Holder 

6

is solely responsible for any Section 409A taxes the Award Holder may incur in connection with any Award and no Group member shall have any obligation to indemnify or hold harmless any Award Holder from such taxes.
		
	10.
	TERMINATION OF THE PLAN

		
	10.1
	This Plan shall terminate on the earlier of the following dates:

		
	a.
	the date (if any) determined by the Board to be the date of termination of this Plan; and

		
	b.
	the tenth anniversary of the Adoption Date.

		
	10.2
	Following termination of this Plan pursuant to Clause 10.1 above, no further Awards shall be made but the subsisting rights and obligations of existing Award Holders will continue in force as if this Plan had not terminated.

		
	11.
	GOVERNING LAW

		
	11.1
	This Plan and all Awards made under it shall be governed by and construed in accordance with the laws of Bermuda. Any dispute concerning the operation of this Plan shall be subject to the exclusive jurisdiction of the courts in Bermuda.

7

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