Document:

Document

Exhibit 10.3

STERICYCLE, INC.
2021 LONG-TERM INCENTIVE PLAN 

Performance Stock Unit Award Agreement

            Stericycle, Inc. (the “Company”), pursuant to its 2021 Long-Term Incentive Plan (the “Plan”), hereby grants an award of Performance Stock Units to you, the Participant named below.  The terms and conditions of this Award are set forth in this Performance Stock Unit Award Agreement (the “Agreement”), consisting of this cover page, the Terms and Conditions on the following pages and the attached Exhibit A, and in the Plan document, a copy of which has been provided to you.  Any capitalized term that is used but not defined in this Agreement shall have the meaning assigned to it in the Plan as it currently exists or as it is amended in the future. 
									
	Name of Participant:
	
	Target Number of Performance Stock Units:
	
	Maximum Number of Performance Stock Units:
	
	Grant Date:
	
	Performance Period:
	January 1, 2022 – December 31, 2024

	Vesting Schedule:
	The number of Units determined by the Committee to have been achieved (if any) will vest* on the third anniversary of the Grant Date.

	Performance Goals:
	See Exhibit A

	* Assumes your Service has been continuous from the Grant Date to the vesting date, except as otherwise provided in this Agreement.
	

By signing below or otherwise evidencing your acceptance of this Agreement in a manner approved by the Company, you agree to all of the terms and conditions contained in this Agreement and in the Plan document.  You acknowledge that you have received and reviewed these documents and that they set forth the entire agreement between you and the Company regarding this Award of Performance Stock Units.  

This Award shall not become effective until you accept this Award and agree to be bound by an Employee Covenant Agreement. Upon such acceptance and agreement, this Award shall become effective, retroactive to the Grant Date, without the necessity of further action by either the Company or you.  If, within 90 days of the Grant Date, you have not accepted this Award and/or if you have not signed the Employee Covenant Agreement and returned it to the Company, this Award may, if so determined by the Company in its discretion, be forfeited and cancelled, in which case you shall have no further rights under or with respect thereto.
PARTICIPANT:                                               STERICYCLE, INC.:

                                                                                                          By:______________________________________
                                       Title:_____________________________________

STERICYCLE, INC.
2021 Long-Term Incentive Plan
Performance Stock Unit Award Agreement

Terms and Conditions

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1.         Grant of Performance Stock Units.  The Company hereby confirms the grant to you, as of the Grant Date and subject to the terms and conditions of this Agreement and the Plan, of an award of Performance Stock Units (the “Units”) in an amount initially equal to the Target Number of Performance Stock Units specified on the cover page of this Agreement.  The number of Units that may actually be achieved and become eligible to vest pursuant to this Award can be between 0% and 200% of the Target Number of Units but may not exceed the Maximum Number of Performance Stock Units specified on the cover page of this Agreement.  Each Unit that is achieved as a result of the performance goals having been satisfied and which thereafter vests represents the right to receive one Share of the Company’s common stock.  Prior to their settlement or forfeiture in accordance with the terms of this Agreement, the Units granted to you will be credited to a performance stock unit account in your name maintained by the Company.  This account will be unfunded and maintained for book-keeping purposes only, with the Units simply representing an unfunded and unsecured contingent obligation of the Company.

2.         Restrictions Applicable to Units.  Neither this Award nor the Units subject to this Award may be sold, assigned, transferred, exchanged or encumbered, voluntarily or involuntarily, other than (i) a transfer upon your death in accordance with your will, by the laws of descent and distribution or pursuant to a beneficiary designation submitted in accordance with Section 6(d) of the Plan, or (ii) pursuant to a domestic relations order.  Following any such transfer, this Award shall continue to be subject to the same terms and conditions that were applicable to this Award immediately prior to its transfer.  Any attempted transfer in violation of this Section 2 shall be void and without effect.  The Units and your right to receive Shares in settlement of any Units under this Agreement shall be subject to forfeiture except to the extent the Units have been achieved and thereafter vest as provided in Sections 4 and 5.

3.         No Shareholder Rights.  The Units subject to this Award do not entitle you to any rights of a holder of the Company’s common stock.  You will not have any of the rights of a shareholder of the Company in connection with any Units granted or achieved pursuant to this Agreement unless and until Shares are issued to you in settlement of achieved and vested Units as provided in Section 6.  
4.         Vesting of Units.  
(a)        Performance Targets.  The Committee has established performance targets (“Performance Targets”) for the Performance Period that are set forth in Exhibit A (which is incorporated into and forms a part of this Agreement). The Performance Targets, subject to any modifier(s) set forth in Exhibit A, shall be used to determine the number of Units that will be achieved for the Performance Period and that may become vested as described in subsection (b). 

(b)        General Vesting Rules.  The number of Units that have been achieved during the Performance Period, as determined by the Committee in accordance with Exhibit A, will vest (the “Vested Units”) on the third anniversary of the Grant Date (the “Scheduled Vesting Date”). Except as otherwise provided by the Committee or this Agreement, if your Service terminates for any reason prior to the Scheduled Vesting Date, then, as of your termination date, all then unvested Units shall be cancelled and shall be forfeited, none of the unvested Units shall become Vested Units and you shall have no rights under or with respect to any of the unvested Units. All Units that become Vested Units on the Scheduled Vesting Date shall be distributed to you in accordance with Section 6.

(c)        Accelerated or Continued Vesting.  

(i)         Death or Disability. Notwithstanding the provisions of subsection 3(b), if your Service terminates prior to the Scheduled Vesting Date on account of your death or Disability, then all of the then outstanding unvested Units shall become Vested Units at the target level of performance, and such termination date shall be the vesting date for such Units for purposes of Section 6. 

(ii)        Retirement. If (A) your Service terminates prior to the Scheduled Vesting Date due to your Retirement, (B) you provided written notice to the Company of your intention to retire at least six months prior to your termination date due to Retirement, and (C) at least six months have elapsed between 
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the Grant Date and your termination date due to Retirement, then the Units will remain outstanding and subject to the general vesting rules set forth in subsection (b) above; provided, however, that the Employee Covenant Agreement referred to in Section 8 of this Agreement shall continue to apply to you following your termination date due to Retirement until the Committee determines the Vested Units that actually become achieved and vested and such Vested Units are settled, and if you violate any provision of the Employee Covenant Agreement during such period, then Section 8 below will apply. Units which have been achieved and vested pursuant to this Subsection 4(c)(ii) shall be settled in accordance with Section 6, except that settlement of each vested Unit shall be made no later than December 31, 2025.

(iii)       Change in Control. If a Change in Control occurs while you continue to be a Service Provider and prior to the Scheduled Vesting Date, the following provisions shall apply:

(A)       If the surviving or successor entity (or its parent company) continues, assumes or replaces this Award, then the Performance Targets for the outstanding unvested Units shall be deemed to be achieved as of the date of the Change in Control at the target level of performance without application of modifier(s) (the “Deemed Achieved Units”), and if this Award has been continued or assumed, this Award shall continue with respect to the Deemed Achieved Units, and if this Award has been replaced, this Award shall terminate and the replacement Award shall reflect the equivalent of the Deemed Achieved Units, and the Deemed Achieved Units under this Award or the replacement Award, as the case may be, shall be subject to a continuing service requirement (except as set forth in the remainder of this subsection (A)) until the Scheduled Vesting Date; provided, however, that if on or within 24 months following a Change in Control, you cease to be a Service Provider due either to (x) an involuntary termination for reasons other than Cause or (y) a resignation for Good Reason, then all unvested Deemed Achieved Units shall immediately vest in full.  
(B)       If and to the extent this Award is not continued, assumed or replaced, then all of the Units then outstanding shall become Vested Units at the target level of performance immediately prior to the effective time of the Change in Control.  Further, the Committee may provide that this Award shall be canceled at or immediately prior to the effective time of the Change of Control in exchange for a payment in an amount equal to the fair market value (as determined in good faith by the Committee) of the consideration that would otherwise be received in the Change of Control for the number of shares (assuming a target level of performance) subject to this Award, and payment of any such amount shall be made in such form, on such terms and subject to such conditions as the Committee determines in its discretion.  For the avoidance of doubt, with respect to any Award that is deferred compensation for purposes of Section 409A of the Code in the event that it would be impermissible to accelerate the settlement of any such Award in connection with a Change in Control, no distribution shall be made to you by reason of such Change of Control (although any other modification or enhancement to the Award, such as accelerated vesting, shall still apply) and the value of such Award as determined by the Committee prior to such Change of Control shall be paid to the affected Service Provider on the date the Award would have otherwise been settled without regard to the Change of Control.
(C)       For purposes of this Section 4(b)(3), this Award will be considered assumed or replaced under the circumstances specified in Section 12(b)(1) of the Plan.
5.         Effect of Termination of Service.  Except as otherwise provided in accordance with Section 4(c) above, if you cease to be a Service Provider, you will forfeit all unvested Units.  

6.         Settlement of Units.  Subject to Section 8 below, after any Units vest pursuant to Section 4, the Company shall, as soon as practicable (but no later than the 15th day of the third calendar month following the vesting date), cause to be issued and delivered to you (or to your personal representative or your designated beneficiary or estate in the event of your death, as applicable) one Share in payment and settlement of each vested Unit.  Delivery of the Shares shall be effected by the issuance of a stock certificate to you, by an appropriate entry in the stock register maintained by the Company’s transfer agent with a notice of issuance provided to you, or by the electronic delivery of the Shares to a brokerage account designated by the Company, and shall be subject to the tax withholding provisions of Section 7 and compliance with all applicable legal requirements as provided in Section 17(c) of the Plan, and shall be in complete satisfaction and settlement of such vested Units.  The Company will pay any original issue or transfer taxes with respect to the issue and transfer of Shares to you pursuant to this Agreement, and all fees and expenses incurred by it in connection therewith.  If the Units that vest include a fractional Unit, the Company shall round the number of vested Units down to the nearest whole Unit prior to issuance of Shares as provided herein and shall pay cash to you equal in value to any fractional vested Unit. 
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7.         Tax Consequences and Withholding.  No Shares will be delivered to you in settlement of vested Units unless you have made arrangements acceptable to the Company for payment of any federal, state, local or foreign withholding taxes that may be due as a result of the delivery of the Shares.  You hereby authorize the Company (or any Affiliate) to withhold from payroll or other amounts payable to you any sums required to satisfy any withholding tax obligations related to the grant, vesting, settlement or otherwise arising out of the Units, and you otherwise agree to satisfy such obligations in accordance with the provisions of Section 14 of the Plan.  To the extent that any Shares are eligible for settlement at the time of taxation, unless otherwise determined by the Committee, the Company will withhold a number of Shares that would otherwise be issued to you in settlement of the Units and that have a fair market value equal to the amount of such withholding tax obligations, unless you notify the Company prior to the vesting date that you will provide for cash payment to the Company of such withholding tax obligations and you actually make such cash payment to the Company.
8.         Forfeiture of Award and Compensation Recovery.
(a)        Forfeiture Conditions.  This Award is subject to forfeiture and automatic cancellation as provided in the Employee Covenant Agreement. In addition, you may be required to repay the Company any cash paid in settlement of the Award, and the net proceeds from the sale of any stock issued in settlement of the Award, as also provided in the Employee Covenant Agreement.

(b)        Compensation Recovery Policy. In addition to those provisions in Section 8(a), this Award and any compensation associated therewith is subject to potential forfeiture or recovery in accordance with any compensation recovery policy adopted by the Board or the Committee.  This Agreement may be unilaterally amended by the Committee to comply with any such compensation recovery policy.  
(b)        Compensation Recovery Policy. In addition to those provisions in Section 8(a), 
this Award and any compensation associated therewith is subject to potential forfeiture or recovery in accordance with any compensation recovery policy adopted by the Board or the Committee.  This Agreement may be unilaterally amended by the Committee to comply with any such compensation recovery policy.  
 
 
(c)        Remedies.  The parties expressly agree that the forfeiture and repayment obligations contained in this Section 8 do not constitute the Company’s exclusive remedy for your violation of Section 8.  The Company may seek any additional legal or equitable remedy, including injunctive relief, for any such violation.
(c)        Remedies.  
The parties expressly agree that the forfeiture and repayment obligations contained 
in this 
Section 8 do not constitute the Company’s exclusive remedy for your violation of 
Section 8. 
 The Company may seek any additional legal or equitable remedy, including injunctive relief, for any such violation.

  
 
9.         Notices.  Every notice or other communication relating to this Agreement shall be in writing and shall be mailed to or delivered (including electronically) to the party for whom it is intended at such address as may from time to time be designated by it in a notice mailed or delivered to the other party as herein provided.  Unless and until some other address is so designated, all notices or communications by you to the Company shall be mailed or delivered to the Company, to the attention of its SVP, Global Total Rewards, at its office at 2355 Waukegan Road, Bannockburn, IL 60015, [___________], and all notices or communications by the Company to you may be given to you personally or may be mailed or, if you are still a Service Provider, emailed to you at the address indicated in the Company's records as your most recent mailing or email address.
10.       Additional Provisions.
(a)        No Right to Continued Service.  This Agreement does not give you a right to continued Service with the Company or any Affiliate, and the Company or any such Affiliate may terminate your Service at any time and otherwise deal with you without regard to the effect it may have upon you under this Agreement.

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(b)        Governing Plan Document.  This Agreement and the Award are subject to all the provisions of the Plan, and to all interpretations, rules and regulations which may, from time to time, be adopted and promulgated by the Committee pursuant to the Plan.  If there is any conflict between the provisions of this Agreement and the Plan, the provisions of the Plan will govern.  The Committee’s interpretation of the Plan and this Agreement shall be final and binding.

(c)        Governing Law.  This Agreement, the parties’ performance hereunder, and the relationship between them shall be governed by, construed, and enforced in accordance with the laws of the State of Delaware, without giving effect to the choice of law principles thereof.

(d)        Severability.  The provisions of this Agreement shall be severable and if any provision of this Agreement is found by any court to be unenforceable, in whole or in part, the remainder of this Agreement shall nevertheless be enforceable and binding on the parties.  You also agree that any trier of fact may modify any invalid, overbroad or unenforceable provision of this Agreement so that such provision, as modified, is valid and enforceable under applicable law.

(e)        Binding Effect.  This Agreement will be binding in all respects on your heirs, representatives, successors and assigns, and on the successors and assigns of the Company.

(f)         Section 409A of the Code.  The award of Units as provided in this Agreement and any issuance of Shares or payment pursuant to this Agreement are intended to be exempt from or in compliance with Section 409A of the Code and this Agreement and the Plan shall be administered and interpreted in accordance with this intent.

(g)        Electronic Delivery and Acceptance.  The Company may deliver any documents related to this Performance Stock Unit Award by electronic means and request your acceptance of this Agreement by electronic means.  You hereby consent to receive all applicable documentation by electronic delivery and to participate in the Plan through an on-line (and/or voice activated) system established and maintained by the Company or the Company’s third-party stock plan administrator.

By signing the cover page of this Agreement or otherwise accepting this Agreement in a manner approved by the Company, you agree to all the terms and conditions described above and in the Plan document.

EXHIBIT A
The PSU Performance Targets for the 2022 grant, which are associated with performance during the fiscal years 2022-2024, are shown below.  Each metric is equally weighted at 50%.

Return on Invested Capital (ROIC) is defined as the Company’s Net Operating Profit After Taxes over the average invested capital, less goodwill and intangible amortization. The ROIC for such calculations is adjusted to exclude items (see below) that are approved at the time of grant by the Compensation Committee.

Adjusted Earnings Per Share (EPS) Adjusted diluted earnings per share is a Non-GAAP measure and excludes adjusting items as described and reconciled to comparable U.S. GAAP financial measures in the Reconciliation of U.S. GAAP to Non-GAAP Financial Measures within the annual proxy statement. This Adjusted EPS calculation is further modified to exclude items that are approved at the time of grant by the Compensation Committee and may include items like foreign exchange rate impacts, movement in SOP paper prices, and other non-organic elements. The full list of approved adjustments is available upon request to the SVP of Total Rewards.

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The adjustments approved by the Compensation Committee include items such as impairment(s) or accelerated depreciation or amortization related to carrying value of goodwill, intangible assets, and/or long-lived assets and charges, gains/losses or expenses relating to acquisitions and dispositions, and pre-approved system conversions and/or implementations. The full list of approved adjustments is available upon request to the SVP of Total Rewards at [__________________].

2022 – 2024 ROIC Achievement Table																					
	3-Yr ROIC Target Range
		2024 ROIC Target
		Attainment %
		Payout %

							
	Max Payout
						
							
							
							
							
							
							
							
							
							
							
							
	2024 target
						
							
							
							
							
							
	Entry Point
						

2024 EPS Achievement Table															
	3-Yr Adjusted EPS Target Range
		2024 Adjusted EPS Target
	Attainment %
	Payout %

					
	Max Payout
				
					
					
					
					
					
					
					
					
					
					
					
	2024 target
				
					
					
					
					
					
	Entry Point
				

Vesting

•    Vesting (if achieved) occurs at the end of the 3-year period.

•    The achievement level for 2022-2024 results is based on the achievement tables above (% of target achieved for each metric will be rounded to the nearest tenth of a percent and the % achieved within each point on the grid shall be interpolated on a linear basis).

•    After the Adjusted EPS and ROIC achievement levels are determined based on the tables above, a relative TSR modifier will then be applied, which compares the performance of Stericycle stock over the 2022-2024 period to the performance of the S & P MidCap 400 performance and modifies the EPS/ROIC result by [___] – [___]%.

•    The achieved award (as determined by the Committee) will then be available for vesting on the 3rd anniversary of the grant date (as long as the award recipient is still employed on that date or is eligible for vesting under another provision described in the agreement, such as an eligible retirement event) and the actual number of vested PSUs will be based on the calculations above.

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CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT  BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE  REGISTRANT IF PUBLICLY DISCLOSED.  [*****] INDICATES THAT INFORMATION HAS  BEEN REDACTED.  EXECUTION COPY  THIS AMENDMENT AGREEMENT (the “Amendment Agreement”) is made on November 15, 2019  (the “Effective Date”) between:  (1) SOCIÉTÉ NATIONALE DES HYDROCARBURES, a company established and duly  incorporated under the laws of the Republic of Cameroon under company registration number  RC Yaoundé J-58 with its registered office at P.O. Box 955, Yaoundé, Cameroon, represented  for the purposes of this Agreement by [*****], duly authorised for the purposes hereof (“SNH”);  (2) PERENCO CAMEROON SA, a limited liability company with a board of directors, with a  share capital of [*****], established and duly incorporated under the laws of the Republic of  Cameroon under company registration number RC/DLA/1982/B/8367, with its registered office  at P.O. Box 1225 Douala, Cameroon, represented for this purpose by [*****] duly authorised for  the purposes hereof (“Perenco”);   (3) GOLAR HILLI CORPORATION, a company established and duly incorporated under the  laws of the Marshall Islands, under company registration number 68975, with its registered  office located at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall  Islands, MH96960, represented for the purposes of this Agreement by Mr John Johansen, duly  authorised for the purposes hereof (“Golar”); and  (4) GOLAR CAMEROON SASU, a simplified limited company with a sole shareholder, with a  share capital of CFA Francs ten million (XAF 10,000,000), established and duly  incorporated  under the laws of the Republic of Cameroon, under company registration number  RC/DLA/2015/B/3350, with  its registered office located at Avenue de Gaulle 600. Bonanjo, PO  Box 1404, Douala, Cameroon, represented for the purposes of this Agreement by Mr John  Johansen, duly authorised for the purposes hereof (“Golar Cam”).  SNH, Perenco, Golar and Golar Cam, and their respective successors and permitted assignees (if any),  may sometimes individually be referred to throughout this Agreement as a “Party” and collectively as  the “Parties” (and, where the context requires, each of SNH and Perenco may together be referred to as  a single Party, and each of Golar and Golar Cam may together be referred to as a single Party).  RECITALS:  (A) The Parties entered into a liquefaction tolling agreement dated 29 November 2017 (the “LTA”)  in connection with the development of a floating liquefied natural gas export project offshore  Kribi, in Cameroon (the “Project”).  (B) The Parties now wish to amend the LTA in accordance with the provisions hereof.  NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby  acknowledged it is agreed as follows:  1 DEFINITIONS, INTERPRETATION AND LANGUAGE  1.1 Definitions  

 

Unless the context otherwise requires and save as mentioned herein, words and expressions  defined in the LTA shall have the same meanings when used in this Amendment Agreement.  1.2 Interpretation  References in the LTA to “this Agreement” shall, with effect on and from the Effective Date  and unless the context otherwise requires, be references to the LTA as amended and/or  supplemented by this Amendment Agreement and words such as “herein”, “hereof”,  “hereunder”, “hereafter”, “hereby” and “hereto”, where they appear in the LTA, shall be  construed accordingly.  1.3 Incorporation of certain references  Clauses 1.2 (as amended by this Amendment Agreement), 1.3, 31.4 and 31.5 of the LTA shall be  deemed to be incorporated in this Amendment Agreement in full, mutatis mutandis.  2 AMENDMENTS TO THE LTA  2.1 The LTA shall be amended with effect on and from the Effective Date as set out in this Clause  2.  2.2 Clause 1.2 of the LTA shall be amended by:  (i) Deleting the definitions of “Base Capacity”, “Monthly Component”, “Purging and Cool  Down Fee” and “Tolling Fee” and replacing them with the following:  ““Base Capacity” means LNG liquefaction capacity of 1.2 MMTPA or pro rata thereof in  the first and last Contract Year. In respect of the first Contract Year, the Base Capacity  shall be calculated from the Acceptance Date, notwithstanding that the first Contract  Year may commence after the Acceptance Date.”  ““Monthly Component” means twelve (12); provided, however, that (i) for the first and  last Contract Year, Monthly Component shall mean the number of months in the  respective Contract Year with the first and last months in such Contract Year being  prorated based upon the number of days in such month (if the first and last months are  not full calendar months), and (ii) [*****]”  ““Purging and Cool Down Fee” shall have the meaning set out in Clause 5.1(f).”  ““Tolling Fee” means the sum of the Base Tolling Fee and the Excess Tolling Fee.”  (ii) Adding the following new definitions in alphabetical order:  ““Base Tolling Fee” has the meaning given to it in Clause 5.1(a).”  ““Excess Base Capacity” means the LNG liquefaction capacity over and above the Base  Capacity notified by the Customer in respect of a Contract Year if [*****].”  ““Excess Tolling Fee” has the meaning given to it in Clause 5.1(e).”  ““MMBTU Excess Base Capacity” shall be the MMBTU equivalent of the Excess Base  Capacity, and shall be calculated by multiplying the Excess Base Capacity [*****].”  

 

““Monthly Excess Base Capacity” means the Excess Base Capacity divided by the  Monthly Component.”  2.3 Clause 3.1 of the LTA shall be amended by inserting “and the Excess Base Capacity” after “the  Base Capacity” in the 2nd line.  2.4 Clause 5.1 of the LTA shall be deleted in its entirety and replaced with the following:  “5.1 Fees  Customer shall, as compensation for the performance by Golar and Golar Cam of the  Services, pay to Golar the sum of the following components (such sum collectively  referred to as the “Fee”) in respect of the period from the Acceptance Date until the end  of the Term (the “Services Period”):  (a) A monthly fee (the “Base Tolling Fee”) payable in arrears in an amount equal to  (1) the MMBTU Base Capacity for the applicable Contract Year divided by (2) the  Monthly Component and multiplied by (3) the price per MMBTU (based on Gross  Heating Value), which shall be calculated as follows:  (i) Brent Crude Price > [*****].  (ii) Brent Crude Price > USD60 but [*****].  (iii) Brent Crude Price < USD60: [*****].  The “Brent Crude Price” shall be the un-weighted arithmetic average (expressed  in USD per barrel) of the Dated Brent Index values for the three (3) months  immediately preceding (but excluding) the calendar month in respect of which the  Tolling Fee is calculated and for which payment is due pursuant to Clause 5.1.  “Dated Brent Index” means, for a calendar month, the un-weighted arithmetic  average (expressed in USD per barrel) of all Dated Brent values for each quoted  day of such calendar month; and “Dated Brent” means the daily arithmetic  average of the high and low assessment prices (expressed in USD per barrel)  published on a given quoted day in Platts Oilgram Price Report under the heading  “Crude price assessments ($/bbl)” under the “International” Clause for the “Brent  (DTD)” quotation (Platts code: PCAAS00).  The above Base Tolling Fee shall be applicable in all circumstances during the  Services Period.  (b) The Customer shall have [*****] to instruct Golar to increase the LNG liquefaction  capacity of the FLNG Facility up to a maximum of [*****] metric tonnes in excess  of the Base Capacity for the Contract Year starting on [*****].  (c) The Customer shall have [*****], to instruct Golar to increase the LNG liquefaction  capacity of the FLNG Facility up to a maximum of [*****].  (d) For the avoidance of doubt, [*****].  (e) Golar shall comply with any such instructions within the relevant [*****] period  (or a shorter time period which can be reasonably accommodated given the  operational limitations of the FLNG Facility) provided that it is reasonable to do  

 

so in accordance with International LNG Terminal Standards, the Gas Agreement  and applicable law. Once Golar are able to achieve the Excess Base Capacity  notified by the Customer, Golar shall notify the Customer in writing, following  which an additional monthly fee (the “Excess Tolling Fee”) payable in arrears in  an amount equal to (1) the MMBTU Excess Base Capacity for the applicable  Contract Year divided by (2) the Monthly Component and multiplied by (3) the  price per MMBTU (based on Gross Heating Value), which shall be calculated as  follows (commencing on the first day of the calendar month following such  notification by Golar):  (i) Brent Crude Price > [*****].  (ii) Brent Crude Price >USD60 [*****].  (iii) Brent Crude Price < USD60: [*****].  (f) Purging and Cool Down Fee. If the Customer receives purging and cool down  pursuant to Clause 15.9(a) [*****] (“Purging and Cool Down Fee”). The Purging  and Cool Down Fee shall be payable in arrears and invoiced pursuant to Clause  6.2.  For the avoidance of doubt, [*****].”  2.5 Clause 5.2(b) of the LTA shall be amended by deleting the references to “(or, as the case may  be, Clause 5.1(b))” in the 8th and 17th lines and replacing them with “(and, as the case may be,  Clause 5.1(e))”.  2.6 Clause 8.1 of the LTA shall be amended by inserting “and the Excess Base Capacity” after “the  Base Capacity” in the 8th line.  2.7 Clause 10.1(a) of the LTA shall be amended by inserting “and the Excess Base Capacity” after  “the Base Capacity” in the 3rd line.    2.8 Clause 12.1(d) of the LTA shall be amended by inserting “and the Excess Base Capacity” after  “the Base Capacity” in the 2nd and 3rd lines.  2.9 Clause 13.1 of the LTA shall be amended by inserting “and the Excess Base Capacity” after “the  Base Capacity” in the 6th line.  2.10 Clause 13.3(d)(i) of the LTA shall be deleted in its entirety and replaced with the following:  “(i) If Golar delivers to the Customer, in a calendar month, less than [*****] of the lesser of (a)  the sum of the Monthly Base Capacity and the Monthly Excess Base Capacity or (b) the  quantity of LNG actually required by Customer to be delivered (the lesser of the sum of  the Monthly Base Capacity and the Monthly Excess Base Capacity or actual required  quantity in a calendar month being the “RMQ”), and such failure is primarily  attributable to Services Unavailability, then, subject to Clauses 13.3(ii), (iii) and (iv)  below, the Customer shall be entitled to make a deduction from the Tolling Fee for the  applicable calendar month which is [*****].”  2.11 Clause 17 of the LTA shall be deleted in its entirety and replaced with the following:  

 

“17 CREDIT SUPPORT  17.1  Golar Credit Support  (a)  Golar shall provide a bank guarantee issued by an internationally recognised bank  and acceptable to the Customer (the “Golar Credit Support”), guaranteeing the  obligations of Golar to pay Daily LDs and the Termination Balloon Payment under  Clause 9.4(e) above, [*****], and termination fees under Clause 18.2(a), capped at a  maximum of [*****] less [*****]; save that when the FLNG Vessel has produced over  3.6 million tonnes of LNG (including, for the avoidance of doubt, LNG produced  during the Commissioning Period) [*****].  17.2  Customer Credit Support  (a)  Perenco shall provide bank guarantees issued by three (3) or more internationally  recognised banks acceptable to Golar (each a “Bank Guarantee” and together the  “Perenco Credit Support”), guaranteeing (on a pro-rated basis) the obligations of  Perenco to pay termination fees under Clause 18.2(b) below, capped at a maximum  aggregate amount of [*****] (the “Maximum Aggregate Amount”). Both the  Maximum Aggregate Amount and the maximum amount of each Bank Guarantee  shall reduce (on a pro-rated basis) as from the second (2nd) anniversary of the  Acceptance Date by [*****] (as at the time of termination) payable for the remaining  duration of this Agreement.   Golar undertakes that it shall not make a demand for payment under some but not all  of the Bank Guarantees, and that the amount of any demand pursuant to an  individual Bank Guarantee will be calculated by Golar on a pro rata basis, meaning  such amount shall bear the same proportion to the aggregate total amount demanded  under the Perenco Credit Support in respect of the termination event or repudiatory  breach in question, as the maximum amount of the relevant Bank Guarantee bears to  the Maximum Aggregate Amount (each as amended from time to time).  (b) SNH shall provide a guarantee guaranteeing SNH’s obligations to pay termination  fees under Clause 18.2(b) below, [*****], and which reduces as from the second (2nd)  anniversary of the Acceptance Date by [*****] (as at the time of termination) payable  for the remaining duration of this Agreement, or alternative security reasonably  acceptable to Golar (the “SNH Credit Support”).”      2.12 Annex 2 (Project Specifications) of the LTA shall be deleted in its entirety and replaced with the  following:  “ANNEX 2 - PROJECT SPECIFICATIONS  Component, Mol % Minimum Maximum  C02 [*****] [*****]  Nitrogen [*****] [*****]  

 

Methane [*****] [*****]  Ethane [*****] [*****]  Propane [*****] [*****]  i-Butane [*****] [*****]  n-Butane [*****] [*****]  i-Pentane [*****] [*****]  n-Pentane [*****] [*****]  C6+ [*****] [*****]  Benzene [*****] [*****]  Toluene [*****] [*****]  H20 [*****] [*****]  Eglycol [*****] [*****]  m-Mstyrene [*****] [*****]  MW [*****] [*****]                              

 

The above minimum and maximum levels are derived from the following [*****]:   [*****] [*****] [*****] [*****] [*****] [*****] [*****] [*****]  [*****] [*****] [*****] [*****] [*****]  [*****] [*****] [*****] [*****]  CO2 [*****] [*****] [*****]  [*****]  [*****]  [*****]  [*****]  [*****] [*****]  Nitrogen [*****] [*****] [*****] [*****] [*****]  [*****]  [*****]  [*****] [*****]  Methane [*****] [*****]  [*****]  [*****]  [*****]  [*****] [*****]  [*****] [*****]  Ethane [*****]  [*****]  [*****]  [*****] [*****]  [*****] [*****]  [*****] [*****]  Propane [*****] [*****]  [*****]  [*****]  [*****]  [*****]  [*****]  [*****] [*****]  i-Butane [*****] [*****]  [*****]  [*****]  [*****]  [*****] [*****] [*****] [*****]  n-Butane [*****] [*****]  [*****] [*****] [*****]  [*****] [*****] [*****] [*****]  i-Pentane [*****] [*****]  [*****] [*****] [*****]  [*****] [*****] [*****] [*****]  n-Pentane [*****] [*****] [*****]  [*****]  [*****]  [*****] [*****]  [*****] [*****]  n-Hexane [*****]  [*****]  [*****]  [*****] [*****]  [*****]  [*****] [*****] [*****]  Benzene [*****]  [*****]  [*****] [*****]  [*****]  [*****]  [*****] [*****] [*****]  C_6* [*****] [*****]  [*****] [*****]  [*****]  [*****]  [*****] [*****] [*****]  Toluene [*****] [*****]  [*****]  [*****]  [*****] [*****]  [*****] [*****] [*****]  C_7* [*****]  [*****] [*****] [*****]  [*****] [*****]  [*****] [*****] [*****]  C_8* [*****]  [*****]  [*****] [*****]  [*****]  [*****]  [*****] [*****] [*****]  C_9* [*****]  [*****] [*****]  [*****]  [*****]  [*****]  [*****] [*****] [*****]  C_10* [*****] [*****]  [*****]  [*****] [*****] [*****]  [*****]  [*****] [*****]  C_11* [*****] [*****]  [*****]  [*****]  [*****] [*****]  [*****] [*****] [*****]  C_12* [*****]  [*****]  [*****]  [*****]  [*****]  [*****] [*****]  [*****] [*****]  C_13* [*****]  [*****] [*****]  [*****]  [*****] [*****]  [*****]  [*****] [*****]  C_14* [*****] [*****]  [*****] [*****]  [*****]  [*****]  [*****] [*****] [*****]  

 

C_15* [*****]  [*****] [*****]  [*****]  [*****] [*****]  [*****]  [*****] [*****]  C_16* [*****] [*****]  [*****] [*****]  [*****]  [*****]  [*****] [*****] [*****]  H2O [*****]  [*****] [*****]  [*****]  [*****] [*****]  [*****]  [*****] [*****]  EGlycol [*****] [*****]  [*****] [*****]  [*****]  [*****]  [*****] [*****] [*****]  n-Heptane [*****]  [*****] [*****]  [*****]  [*****] [*****]  [*****]  [*****] [*****]  n-Octane [*****] [*****]  [*****] [*****]  [*****]  [*****]  [*****] [*****] [*****]  n-Nonane [*****]  [*****] [*****]  [*****]  [*****] [*****]  [*****]  [*****] [*****]  n-Decane [*****] [*****]  [*****] [*****]  [*****]  [*****]  [*****] [*****] [*****]  E-Benzene [*****]  [*****] [*****]  [*****]  [*****] [*****]  [*****]  [*****] [*****]  m-MStyrene [*****] [*****]  [*****] [*****]  [*****]  [*****]  [*****] [*****] [*****]  TOTAL [*****]  [*****] [*****]  [*****]  [*****] [*****]  [*****]  [*****] [*****]  =>C6 [*****] [*****]  [*****] [*****]  [*****]  [*****]  [*****] [*****] [*****]  MW [*****]  [*****] [*****]  [*****]  [*****] [*****]  [*****]  [*****] [*****]  

 

  FEED GAS INLET CONDITIONS (GAS RECEIPT POINT)   •       Maximum Feed Gas inlet rate: [*****]    •       Normal operating pressure: [*****]  [*****][*****][*****]     FLNG SITE  FLNG Site is defined by the following coordinates (with reference point being the FLNG Vessel’s soft  yoke mooring swivel):  UTM Zone 32N, CM 9°E, Manoca  1962 Datum  X (m) 593 089  Y (m) 333 292          WIND, WAVES AND CURRENT DATA  Wind, waves and current data are defined in the following reports prepared by BMT Argoss:  • “Extreme wave conditions near Kribi (Cameroon)”, reference RP_A15123, revision 1, dated 4  June 2015  

 

• “Metocean conditions near Kribi (Cameroon)”, reference RP_A15143, revision 1, dated 1  September 2015.    MOORING FACILITIES  Soft yoke mooring system    3 NOTICE TO BANKS  Within 2 (two) Business Days of the Effective Date, Golar and Perenco shall duly sign and  issue each of the forms of beneficiary reduction request and written confirmation of value  reduction  at Schedule 1 each with an effective date of 2 (two) Business Days thereafter (unless  the parties otherwise agree) and send these to the applicable banks which issued the Golar  Credit Support and the Perenco Credit Support. Golar and Perenco shall duly sign and issue  further beneficiary reduction requests and written confirmations of value reduction to give  effect to the amendments made to clause 17.1 and clause 17.2 of the LTA set out in Clause 2.14  above at the relevant time.  4 EXCHANGE OF SNH CREDIT SUPPORT  At any time following the Effective Date, SNH may request a meeting between its and Golar’s  representatives for the purpose of exchanging originals of the current version of the SNH  Credit Support issued to Golar dated 29 November 2017 [*****].  5 TERM OF LTA  5.1 Subject to Clause 5.2 below, the Parties hereby confirm and agree that they will use reasonable  endeavours to agree a further amendment to the LTA (the “LTA Term Amendment  Agreement”) by [*****] to delete the current Clause 2.1 of the LTA in full and replace it with  the following:   “2.1 Term  The term of this Agreement (the “Term”) shall commence on the Effective Date and shall  expire on the earlier of:  (a) the eighth (8th) anniversary of the Acceptance Date; or   (b) termination pursuant to Clause 18.  [*****].”  5.2 The Parties agree and confirm that the entry into the LTA Term Amendment Agreement will  be subject to the agreement by all Parties thereto to extend the current term of the Gas  Convention to align the expiry date thereof with the revised Term of the LTA as amended by  the LTA Amendment Agreement (the “Gas Convention Extension”). The Parties further  confirm and agree that they will use reasonable endeavours to negotiate, agree and enter into  a fully effective amendment agreement to the Gas Convention between all the parties thereto  to reflect the Gas Convention Extension by [*****].   

 

6 REPRESENTATIONS AND WARRANTIES  6.1 Each Party represents and warrants that the representations and warranties it gives in clause  21 of the LTA are true and correct as at the date of this Amendment Agreement with reference  to the facts and circumstances existing at such date, in relation to both this Amendment  Agreement and the LTA as amended by this Amendment Agreement.  6.2 Each Party further represents and warrants that this Amendment Agreement constitutes its  legal, valid, binding and enforceable obligations in accordance with its terms.  7 MISCELLANEOUS  7.1 Continuation of LTA  Save as amended by this Amendment Agreement, the provisions of the LTA shall continue  in full force and effect and each of the LTA and this Amendment Agreement shall be read  and construed as one instrument.  7.2 Severance of Invalid Provisions  If and for so long as any provision of this Amendment Agreement shall be deemed to be  invalid for any reason whatsoever, such invalidity shall not affect the validity or operation of  any other provision of this Amendment Agreement except only so far as shall be necessary to  give effect to the construction of such invalidity, and any such invalid provision shall be  deemed severed from this Amendment Agreement without affecting the validity of the  balance of this Amendment Agreement.  7.3 Counterpart Execution  This Amendment Agreement may be executed in any number of counterparts and each such  counterpart shall be deemed an original Amendment Agreement for all purposes, provided  that no Party shall be bound to this Amendment Agreement unless and until both Parties  have executed a counterpart.  8 CHOICE OF LAW AND DISPUTE RESOLUTION  8.1 Choice of Law  This Amendment Agreement (and any non-contractual obligations which may arise out of or  in connection with it) shall be governed by and construed in accordance with English law,  without regard to its rules of conflict of laws that would require the application of laws of a  different jurisdiction.    8.2 Arbitration  Any Dispute arising out of or in connection with this Amendment Agreement  shall be  referred to and finally resolved by arbitration under the LCIA Rules (the “Rules”) of the LCIA  Court (formerly the London Court of International Arbitration), save that the Parties do not  waive their right to any form of appeal to any state court or other legal authority.  

 

8.3 Procedure for Arbitration  (a) The arbitral tribunal shall consist of three (3) arbitrators. The claimant shall  nominate one arbitrator; the respondent shall nominate the second arbitrator; and a  third arbitrator, who shall serve as chairman, shall be appointed by the LCIA Court  within fifteen (15) days of the appointment of the second arbitrator.  (b) For the avoidance of any doubt, SNH and Perenco shall only be entitled to  collectively appoint one arbitrator, and Golar and Golar Cam shall only be entitled  to collectively appoint one arbitrator.  If SNH or Perenco commences arbitration  otherwise than jointly with the other, the arbitrator appointed by it shall be deemed  to have been appointed with the agreement of the other. If Golar or Golar Cam  commences arbitration otherwise than jointly with the other, the arbitrator  appointed by it shall be deemed to have been appointed with the agreement of the  other.  (c) In the event the claimant or the respondent shall fail to nominate an arbitrator  within the time limits specified in the Rules, such arbitrator shall be appointed by  the LCIA Court within fifteen (15) days of such failure. In the event that both the  claimant and the respondent fail to nominate an arbitrator within the time limits  specified in the Rules, all three arbitrators shall be appointed by the LCIA Court  within fifteen (15) days of such failure who shall designate one of them as chairman.  (d) If both parties so agree, there shall be a sole arbitrator appointed by the LCIA Court  within fifteen (15) days of such agreement.  (e) The seat of arbitration shall be Geneva, Switzerland, and the language of the  arbitration shall be English.    

 

SCHEDULE 1  FORMS OF BENEFICIARY REDUCTION REQUEST AND WRITTEN CONFIRMATION OF  VALUE REDUCTION  Part A – Golar Beneficiary Reduction Request  To: [*****]  [Date]  Dear Sirs,   Beneficiary Reduction Request  Performance Guarantee reference No. [*****] dated [*****]    We refer to the performance guarantee mentioned above (hereinafter called the “Performance  Guarantee”). This is a Beneficiary Reduction Request under the Performance Guarantee.   All terms defined in the Performance Guarantee have the same meaning in this Beneficiary Reduction  Request.       We request your agreement to a reduction in the amount of the Performance Guarantee from the  current value of [*****] by [*****] to [*****] with such reduction to take effect on (insert date).  Yours faithfully,                               .....................  Duly authorised for and on behalf of Perenco Cameroon SA and Société Nationale des Hydrocarbures  Name: ....................          .....................  Duly authorised for and on behalf of Golar Hilli Corporation  Name: ....................     

 

Part B – Perenco Written Confirmation of Value Reduction ([*****])  To: [*****]   [Date]  Dear Sirs,   Written Confirmation of Value Reduction  Performance Guarantee reference No. [*****] dated [*****]  We refer to the performance guarantee mentioned above (hereinafter called the “Performance  Guarantee”). This is a Written Confirmation under the Performance Guarantee.   Terms defined in the Performance Guarantee have the same meaning in this Written Confirmation.  We request your agreement to a reduction in the Maximum Amount of the Performance Guarantee  from the current value of [*****]by [*****] to [*****] with such reduction to take effect on (insert  date).  We confirm that we have requested a pro rata reduction of the maximum amount of all of the  Performance Guarantees, such that following the reductions thereunder and hereunder the revised  Aggregate Maximum Amount shall be [*****] and the proportion the revised Maximum Amount will  bear to the revised Aggregate Maximum Amount shall remain [*****].  Yours faithfully,  .....................  For and on behalf of Golar Hilli Corporation        .....................  For and on behalf of Perenco Cameroon SA     

 

Part C – Perenco Written Confirmation of Value Reduction ([*****])  To: [*****]  [Date]  Dear Sirs,   Written Confirmation of Value Reduction  Performance Guarantee reference No. [*****] dated [*****]   We refer to the performance guarantee mentioned above (hereinafter called the “Performance  Guarantee”). This is a Written Confirmation under the Performance Guarantee.   Terms defined in the Performance Guarantee have the same meaning in this Written Confirmation.  We request your agreement to a reduction in the Maximum Amount of the Performance Guarantee  from the current value of [*****] by [*****] to [*****] with such reduction to take effect on (insert  date).  We confirm that we have requested a pro rata reduction of the maximum amount of all of the  Performance Guarantees, such that following the reductions thereunder and hereunder the revised  Maximum Aggregate Amount shall be [*****] and the proportion the revised Maximum Amount will  bear to the revised Maximum Aggregate Amount shall remain [*****].  Yours faithfully,  .....................  For and on behalf of Golar Hilli Corporation        .....................  For and on behalf of Perenco Cameroon SA     

 

Part D – Perenco Written Confirmation of Value Reduction ([*****])  To: [*****]  [Date]  Dear Sirs,   Written Confirmation of value reduction  Performance Guarantee reference No. [*****] dated [*****]   We refer to the performance guarantee mentioned above (hereinafter called the “Performance  Guarantee”). This is a Written Confirmation under the Performance Guarantee.   Terms defined in the Performance Guarantee have the same meaning in this Written Confirmation.  We request your agreement to a reduction in the Maximum Amount of the Performance Guarantee  from the current value of [*****] by [*****] to [*****] with such reduction to take effect on (insert  date).  We confirm that we have requested a pro rata reduction of the maximum amount of all of the  Performance Guarantees, such that following the reductions thereunder and hereunder the revised  Maximum Aggregate Amount shall be [*****] and the proportion the revised Maximum Amount will  bear to the revised Maximum Aggregate Amount shall remain [*****].  Yours faithfully,  .....................  For and on behalf of Golar Hilli Corporation        .....................  For and on behalf of Perenco Cameroon SA                      

 

    SCHEDULE 2  [*****]                          

 

EXECUTION PAGE    SIGNED for and on behalf of SOCIÉTÉ NATIONALE DES HYDROCARBURES    By:____/s/ Adolphe Moudiki_____________  Name: ADOLPHE MOUDIKI  Position: EXECUTIVE-GENERAL MANAGER      SIGNED for and on behalf of PERENCO CAMEROON SA    By:____/s/ Adrien Broche_____________  Name: ADRIEN BROCHE  Position: GENERAL MANAGER      SIGNED for and on behalf of GOLAR HILLI CORPORATION    By:____/s/ John Johansen_____________  Name: JOHN JOHANSEN  Position: ATTORNEY-IN-FACT      SIGNED for and on behalf of GOLAR CAMEROON SASU    By:____/s/ John Johansen________________  Name: JOHN JOHANSEN  Position: GENERAL MANAGER

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