Document:

EX-10.6

 Exhibit 10.6 
 

 
 BAKER HUGHES INCORPORATED STOCK OPTION AGREEMENT GRANT OF OPTION The Compensation Committee of the Board of Directors of Baker Hughes
Incorporated, a Delaware corporation (the “Company”), pursuant to the Baker Hughes Incorporated 2002 Director & Officer Long-Term Incentive Plan (the “Plan”), hereby grants to you, the
above-named Participant, effective as of the Grant Date set forth above (the “Grant Date”), a nonqualified stock option to purchase the total number of shares of the Company’s $1.00 par value
per share common stock (“Common Stock”) at the exercise price set forth above for each share subject to the option, subject to adjustment as provided in the Plan. The option is exercisable in installments in accordance with the Vesting
Schedule set forth above with the exercise price payable at the time of exercise. To the extent not exercised, installments shall be cumulative and may be exercised in whole or in part until the option terminates. Notwithstanding any other provision
of this Stock Option Agreement, the option shall not be exercisable before the date on which the stockholders of the Company approve the increase in shares reserved for issuance under the Plan from 10,000,000 to 20,000,000 shares. The option may not
be exercised after the Expiration Date. By your acceptance of the option, you agree that the option is granted under, governed by and subject to the terms of the Plan, this Stock Option Agreement and the Terms and Conditions of Option Agreements.
The shares of Common Stock (the “shares”) that may be issued under this Plan are registered with the Securities and Exchange Commission (“SEC”) under a Registration Statement on Form S-8. A Prospectus describing the Plan and
the shares and the Terms and Conditions can be found on the Baker Hughes Direct website at www.bakerhughesdirect.com. You may obtain a copy of the Plan Prospectus by requesting it from the Company. BAKER HUGHES INCORPORATED Martin S. Craighead
Chairman and Chief Executive Officer 
  

 BAKER HUGHES INCORPORATED 

TERMS AND CONDITIONS 
 OF

 OPTION AGREEMENTS 

These Terms and Conditions are applicable to an option granted pursuant to the Baker Hughes Incorporated 2002 Director &
Officer Long-Term Incentive Plan (the “Plan”) and are incorporated as part of the Stock Option Agreement setting forth the terms of such option (the “Agreement”). 

 

	1.	TERMINATION OF EMPLOYMENT. The following provisions will apply in the event Participant’s employment with the Company and all Affiliates of the Company (collectively, the “Company Group”)
terminates or a Change in Control of the Company occurs before the Expiration Date set forth in the Agreement: 

  

	 	1.1	Termination Generally. If Participant’s employment with the Company Group terminates before the Expiration Date for any reason other than one of the reasons described in Sections 1.2 through 1.6 below,
all of Participant’s rights in the option shall terminate and become null and void on the earlier of the Expiration Date or three years after the date Participant’s employment with the Company Group terminates. In the event
Participant’s employment with the Company Group terminates for any reason, the option shall not continue to vest after such termination of employment. 

  

	 	1.2	Termination for Cause. If Participant’s employment with the Company Group terminates for Cause and such termination occurs (i) prior to a Change in Control that occurs after the Grant Date or
(ii) after the second anniversary of a Change in Control that occurs after the Grant Date, all of Participant’s rights in the option shall terminate and become null and void on the earlier of the Expiration Date or the date
Participant’s employment with the Company Group terminates for Cause. If Participant’s employment with the Company Group terminates for Cause and such termination occurs within two years following a Change in Control that occurs after the
Grant Date, all of Participant’s rights in the option shall terminate and become null and void on the earlier of the Expiration Date or the date thirty (30) days after Participant’s employment with the Company Group terminates for
Cause. Termination for Cause includes (without limitation) fraud, theft, embezzlement committed against the Company Group or a customer of the Company Group or any of its affiliated companies, or for conflict of interest, unethical conduct,
dishonesty affecting the assets, properties or business of the Company Group, willful misconduct, or continued material dereliction of duties. 

  

	 	1.3	Termination Without Cause or for Good Reason in Connection With a Change in Control. Notwithstanding any other provision of the Agreement to the contrary, if a Change in Control of the Company occurs, the
provisions of Article 14 of the Plan shall govern. 

  

	 	1.4	Divestiture of Business Unit. If the Company Group divests its ownership of a business unit of the Company or one or more subsidiaries (a “Unit”) and Participant’s employment with the
Company Group terminates in connection with such Divestiture (other than for Cause or death or due to Participant’s disability within the meaning of Section 1.5), then Participant’s rights under the option that have not then vested
shall vest on the effective date of the Divestiture of the business unit All of Participant’s rights in the option shall terminate and become null and void on the earlier of the Expiration Date or three (3) years after the date
Participant’s employment with the Company Group terminates. A “Divestiture” includes the disposition of a Unit to an entity that the Company does not consolidate in its financial statements, whether the disposition is
structured as a sale or transfer of stock, a merger, a consolidation or a sale or transfer of assets, or a combination thereof, provided that a “Divestiture” shall not include a disposition that constitutes a Change in
Control. 

  
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 1.5 Retirement or Disability. If Participant’s employment with the Company Group
terminates due to Participant’s Retirement or disability, then Participant’s rights under the option that have not then vested shall vest on the effective date of Participant’s Retirement or termination of employment due to
disability. All of Participant’s rights in the option shall terminate and become null and void on the earlier of the Expiration Date or five (5) years after the date Participant’s employment with the Company Group terminates as a
result of Retirement or a disability. For purposes of this Section 1.5, the term “Retirement” means the voluntary termination of Participant’s employment relationship with the Company Group on or after the date on which
Participant is at least 55 years of age (not rounded up) and Participant has completed at least ten whole years of service with the Company Group (not rounded up). For purposes of this Section 1.5, Participant will not be treated as having
incurred a termination due to Retirement if his or her employment is terminated by a member of the Company Group for Cause (within the meaning of Section 1.2). For purposes of this Section 1.5, Participant will incur a
“disability” if Participant qualifies for long-term disability benefits under a long-term disability program sponsored by the Company. 

1.6 Death. If Participant’s employment with the Company Group terminates due to the death of Participant, then Participant’s
rights under the option that have not then vested shall vest on the date of Participant’s death. All rights in the option shall terminate and become null and void on the earlier of the Expiration Date or one year after the date
Participant’s death. After Participant’s death, his or her executors, administrators or any person or persons to whom Participant’s option may be transferred by will or by the laws of descent and distribution, shall have the right, at
any time prior to the termination of the option to exercise the option. 
  

	2.	PROHIBITED ACTIVITY. Notwithstanding any other provision of these Terms and Conditions or the Agreement, if you engage in a “Prohibited Activity,” as described below, while employed by one or more
members of the Company Group, or within two years after the date your employment with the Company Group terminates, then your right to receive payment under the Agreement, to the extent still outstanding at that time, shall be completely forfeited.
A “Prohibited Activity” shall be deemed to have occurred, as determined by the Committee in its sole and absolute discretion, if you (i) divulge any non-public, confidential or proprietary information of the Company or of its
past, present or future affiliates (collectively, the “Baker Hughes Group”), but excluding information that (a) becomes generally available to the public other than as a result of your public use, disclosure, or fault, or
(b) becomes available to you on a non-confidential basis after your employment termination date from a source other than a member of the Baker Hughes Group prior to the public use or disclosure by you, provided that such source is not
bound by a confidentiality agreement or otherwise prohibited from transmitting the information by a contractual, legal or fiduciary obligation, or (ii) directly or indirectly, consult with or become affiliated with, conducts, participate or
engage in, or becomes employed by, any business that is competitive with the business of any member of the Baker Hughes Group, wherever from time to time conducted throughout the world, including situations where you solicit or participate in or
assist in any way in the solicitation or recruitment, directly or indirectly, of any employees of any member of the Baker Hughes Group. 

  

	3.	CASHLESS EXERCISE. Cashless exercise, in accordance with the terms of the Plan, shall be available to Participant for the shares subject to the option. In addition to the cashless exercise alternatives
expressly listed in the Plan, you may elect a net exercise method of exercise under which the Company will reduce the number of shares issued to you upon the exercise of all or portion of the option to satisfy your Option Price obligation for such
portion of the option. 

  

	4.	 AUTOMATIC EXERCISE UPON EXPIRATION DATE. Notwithstanding any other provision of these Terms and Conditions or the Agreement (other than this
Section 4 of these Terms and Conditions), on the last trading day on which all or a portion of the option may be exercised, if the then Fair Market Value of a share exceeds the per share Option Price by at least $.01 (such expiring portion of
the option that is so in-the-money, an “Auto-Exercise Eligible Option”), you will be deemed to have automatically exercised such Auto-Exercise Eligible Option (to the extent it has not previously been exercised or forfeited) in
accordance with the provisions of this Section 4. In the event of an automatic exercise pursuant to this Section 4, the Company will reduce the number of shares issued to you upon such automatic exercise of the Auto-Exercise Eligible
Option to satisfy your Option Price obligation for the Auto-Exercise Eligible Option. Further, the Company shall reduce the number of shares issued to the you to satisfy the Minimum Statutory Withholding Obligation arising upon the automatic
exercise in accordance with the procedures of Article 16 of the Plan unless the Committee deems that a different method of satisfying the tax withholding obligations is practicable and advisable. You may notify the Plan record-keeper, Fidelity, in
writing in 

  
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advance that you do not wish for the Auto-Exercise Eligible Option to be exercised. This Section 4 shall not apply to the option to the extent that this Section 4 may cause the option
to fail to qualify for favorable tax treatment under applicable law. In its discretion, the Company may determine to cease automatically exercising options at any time. 

 

	5.	TAXES AND TAX WITHHOLDING. You should consult with your tax advisor concerning the tax consequences of exercising your option. To the extent that the receipt of the option or the Agreement, the vesting of
the option or the exercise of the option results in income to Participant for federal, state or local income, employment or other tax purposes with respect to which the Company Group has a withholding obligation, Participant shall deliver to the
Company at the time of such receipt, vesting or exercise, as the case may be, such amount of money as the Company Group may require to meet its obligation under applicable tax laws or regulations, and, if Participant fail to do so, the Company Group
is authorized to withhold from the shares subject to the option or from any cash or stock remuneration then or thereafter payable to Participant any tax required to be withheld by reason of such taxable income, including (without limitation) shares
subject to the option sufficient to satisfy the withholding obligation based on the last per share sales price of the common stock of the Company for the trading day immediately preceding the date that the withholding obligation arises, as reported
in the New York Stock Exchange Composite Transactions. 

  

	6.	NONTRANSFERABILITY. Except as specified in these Terms and Conditions, the option and the Agreement are not transferable or assignable by Participant other than by will or the laws of descent and distribution,
and shall be exercisable during Participant’s lifetime only by Participant. 

  

	7.	CAPITAL ADJUSTMENTS AND REORGANIZATIONS. The existence of the option shall not affect in any way the right or power of the Company or any company the stock of which is issued pursuant to the Agreement to make or
authorize any adjustment, recapitalization, reorganization or other change in its capital structure or its business, engage in any merger or consolidation, issue any debt or equity securities, dissolve or liquidate, or sell, lease, exchange or
otherwise dispose of all or any part of its assets or business, or engage in any other corporate act or proceeding. 

  

	8.	EMPLOYMENT RELATIONSHIP. For purposes of the Agreement, Participant shall be considered to be in the employment of the Company Group as long as Participant have an employment relationship with the Company Group.
The Committee shall determine any questions as to whether and when there has been a termination of such employment relationship, and the cause of such termination, under the Plan and the Committee’s determination shall be final and binding on
all persons. 

  

	9.	NO RIGHTS AS A STOCKHOLDER. Participant shall not have any rights as a stockholder of the Company with respect to any shares covered by the option until the date of the issuance of the stock certificate or
certificates to Participant for such shares following exercise of the option pursuant to the Agreement and the Terms and Conditions and payment for the shares. No adjustment shall be made for dividends or other rights for which the record date is
prior to the date such certificate or certificates are issued. 

  

	10.	NOT AN EMPLOYMENT AGREEMENT. The Agreement is not an employment agreement, and no provision of the Agreement shall be construed or interpreted to create an employment relationship between Participant and
the Company or any of its Affiliates or guarantee the right to remain employed by the Company or any of its Affiliates for any specified term. 

  

	11.	SECURITIES ACT LEGEND. If Participant is an officer or affiliate of the Company under the Securities Act of 1933, Participant consents to the placing on any certificate for the shares of an appropriate legend
restricting resale or other transfer of the shares except in accordance with such Act and all applicable rules thereunder. 

  

	12.	LIMIT OF LIABILITY. Under no circumstances will the Company Group be liable for any indirect, incidental, consequential or special damages (including lost profits) of any form incurred by any person,
whether or not foreseeable and regardless of the form of the act in which such a claim may be brought, with respect to the Plan or the Company’s role as Plan sponsor. 

  
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	13.	DATA PRIVACY. The Company’s Human Resources Department in Houston, Texas (U.S.A.) administers and maintains the data regarding the Plan, the awardees and the stock options granted to awardees for all
employees in the Company Group worldwide. 

 The data administered and maintained by the Company includes information
that may be considered personal data, including the name of the awardee, the award granted and the number of shares of stock subject to any stock option award (“Employee Personal Data”). From time to time during the course of your
employment in the Company Group, the Company may transfer certain of your Employee Personal Data to Affiliates as necessary for the purpose of implementation, administration and management of your participation in the Plan (the
“Purposes”), and the Company and its Affiliates may each further transfer your Employee Personal Data to any third parties assisting the Company in the implementation, administration and management of the Plan (collectively,
“Data Recipients”). The countries to which your Employee Personal Data may be transferred may have data protection standards that are different than those in your home country and that offer a level of data protection that is less
than that in your home country. 
 In accepting the award of the stock option set forth in the Agreement, you hereby expressly acknowledge
that you understand that from time to time during the course of your employment in the Company Group the Company may transfer your Employee Personal Data to Data Recipients for the Purposes. You further acknowledge that you understand that the
countries to which your Employee Personal Data may be transferred may have data protection standards that are different than those in your home country and that offer a level of data protection that is less than that in your home country. 

Further, in accepting the award of the stock option set forth in the Agreement, you hereby expressly affirm that you do not object, and you
hereby expressly consent, to the transfer of your Employee Personal Data by the Company to Data Recipients for the Purposes from time to time during the course of your employment in the Company Group. 

 

	14.	RECOUPMENTS. If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under applicable securities laws, if you are
then a current or former executive officer of the Company you shall forfeit and must repay to the Company any compensation awarded under the Agreement to the extent specified in any of the Company’s compensation recoupment policies established
or amended (now or in the future) in compliance with the rules and standards of the Securities and Exchange Commission Committee under or in connection with Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Further,
if the Company is required to prepare an accounting restatement due in whole or in part to your misconduct, you shall forfeit and must repay to the Company any compensation awarded under the Agreement to the extent required by the Board of Directors
of the Company in accordance with the terms of the Company’s compensation recoupment policy as in effect on January 23, 2014. 

  

	15.	MISCELLANEOUS. The Agreement and the option are awarded pursuant to and are subject to all of the provisions of the Plan, which are incorporated by reference herein, including all amendments to the Plan,
if any. In the event of a conflict between these Terms and Conditions and the Plan provisions, the Plan provisions will control. The terms “you” and “your” refer to the Participant named in the Agreement.
Capitalized terms that are not defined herein shall have the meanings ascribed to such terms in the Plan or the Agreement. 

  
 4EX-10.7

 Exhibit 10.7 
 

 
 BAKER HUGHES INCORPORATED STOCK OPTION AGREEMENT GRANT OF OPTION The Compensation Committee of the Board of Directors of Baker Hughes
Incorporated, a Delaware corporation (the “Company”), pursuant to the Baker Hughes Incorporated 2002 Director & Officer Long-Term Incentive Plan (the “Plan”), hereby grants to you, the above-named Participant, effective
as of the Grant Date set forth above (the “Grant Date”), an incentive stock option to purchase the number of shares of the Company’s $1.00 par value per share common stock at the exercise price set forth above for each share subject
to this option, subject to adjustment as provided in the Plan. The option is exercisable in installments in accordance with the Vesting Schedule set forth above with the exercise price payable at the time of exercise. To the extent not exercised,
installments shall be cumulative and may be exercised in whole or in part until the option terminates. Notwithstanding any other provision of this Stock Option Agreement, the option shall not be exercisable before the date on which the stockholders
of the Company approve the increase in shares reserved for issuance under the Plan from 10,000,000 to 20,000,000 shares. The option may not be exercised after the Expiration Date. By your acceptance of the option, you agree that the option is
granted under, governed by and subject to the terms of the Plan, this Stock Option Agreement and the Terms and Conditions of Option Agreements. The shares of Common Stock (the “shares”) that may be issued under this Plan are registered
with the Securities and Exchange Commission (“SEC”) under a Registration Statement on Form S-8. A Prospectus describing the Plan and the shares and the Terms and Conditions can be found on the Baker Hughes Direct website at
www.bakerhughesdirect.com. You may obtain a copy of the Plan Prospectus by requesting it from the Company. BAKER HUGHES INCORPORATED [GRAPHIC APPEARS HERE] Martin S. Craighead Chairman and Chief Executive Officer 

 BAKER HUGHES INCORPORATED 

TERMS AND CONDITIONS 
 OF

 OPTION AGREEMENTS 

These Terms and Conditions are applicable to an option granted pursuant to the Baker Hughes Incorporated 2002 Director & Officer
Long-Term Incentive Plan (the “Plan”) and are incorporated as part of the Stock Option Agreement setting forth the terms of such option (the “Agreement”). 

 

	1.	TERMINATION OF EMPLOYMENT. The following provisions will apply in the event Participant’s employment with the Company and all Affiliates of the Company (collectively, the “Company Group”)
terminates or a Change in Control of the Company occurs before the Expiration Date set forth in the Agreement: 

 1.1
Termination Generally. If Participant’s employment with the Company Group terminates before the Expiration Date for any reason other than one of the reasons described in Sections 1.2 through 1.6 below, all of Participant’s
rights in the option shall terminate and become null and void on the earlier of the Expiration Date or three years after the date Participant’s employment with the Company Group terminates. In the event Participant’s employment with the
Company Group terminates for any reason, the option shall not continue to vest after such termination of employment. 
 1.2 Termination
for Cause. If Participant’s employment with the Company Group terminates for Cause and such termination occurs (i) prior to a Change in Control that occurs after the Grant Date or (ii) after the second anniversary of a Change in
Control that occurs after the Grant Date, all of Participant’s rights in the option shall terminate and become null and void on the earlier of the Expiration Date or the date Participant’s employment with the Company Group terminates for
Cause. If Participant’s employment with the Company Group terminates for Cause and such termination occurs within two years following a Change in Control that occurs after the Grant Date, all of Participant’s rights in the option shall
terminate and become null and void on the earlier of the Expiration Date or the date thirty (30) days after Participant’s employment with the Company Group terminates for Cause. Termination for Cause includes (without limitation) fraud,
theft, embezzlement committed against the Company Group or a customer of the Company Group or any of its affiliated companies, or for conflict of interest, unethical conduct, dishonesty affecting the assets, properties or business of the Company
Group, willful misconduct, or continued material dereliction of duties. 
 1.3 Termination Without Cause or for Good Reason in Connection
With a Change in Control. Notwithstanding any other provision of the Agreement to the contrary, if a Change in Control of the Company occurs, the provisions of Article 14 of the Plan shall govern. 

1.4 Divestiture of Business Unit. If the Company Group divests its ownership of a business unit of the Company or one or more
subsidiaries (a “Unit”) and Participant’s employment with the Company Group terminates in connection with such Divestiture (other than for Cause or death or due to Participant’s disability within the meaning of
Section 1.5), then Participant’s rights under the option that have not then vested shall vest on the effective date of the Divestiture of the business unit All of Participant’s rights in the option shall terminate and become null and
void on the earlier of the Expiration Date or three (3) years after the date Participant’s employment with the Company Group terminates. A “Divestiture” includes the disposition of a Unit to an entity that the Company does
not consolidate in its financial statements, whether the disposition is structured as a sale or transfer of stock, a merger, a consolidation or a sale or transfer of assets, or a combination thereof, provided that a
“Divestiture” shall not include a disposition that constitutes a Change in Control. 
 1.5 Retirement or Disability.
If Participant’s employment with the Company Group terminates due to Participant’s Retirement or disability, then Participant’s rights under the option that have not then vested shall vest on the effective date of Participant’s
Retirement or termination of employment due to disability. 

  
 1 

 All of Participant’s rights in the option shall terminate and become null and void on the
earlier of the Expiration Date or five (5) years after the date Participant’s employment with the Company Group terminates as a result of Retirement or a disability. For purposes of this Section 1.5, the term
“Retirement” means the voluntary termination of Participant’s employment relationship with the Company Group on or after the date on which Participant is at least 55 years of age (not rounded up) and Participant has completed
at least ten whole years of service with the Company Group (not rounded up). For purposes of this Section 1.5, Participant will not be treated as having incurred a termination due to Retirement if his or her employment is terminated by a member
of the Company Group for Cause (within the meaning of Section 1.2). For purposes of this Section 1.5, Participant will incur a “disability” if Participant qualifies for long-term disability benefits under a long-term
disability program sponsored by the Company. Note that if you exercise an incentive stock option more than three months after the date of your termination of employment, you may not be entitled to certain favorable federal income tax treatment
applicable to incentive stock options. 
 1.6 Death. If Participant’s employment with the Company Group terminates due to the
death of Participant, then Participant’s rights under the option that have not then vested shall vest on the date of Participant’s death. All rights in the option shall terminate and become null and void on the earlier of the Expiration
Date or one year after the date Participant’s death. After Participant’s death, his or her executors, administrators or any person or persons to whom Participant’s option may be transferred by will or by the laws of descent and
distribution, shall have the right, at any time prior to the termination of the option to exercise the option. 
  

	2.	PROHIBITED ACTIVITY. Notwithstanding any other provision of these Terms and Conditions or the Agreement, if you engage in a “Prohibited Activity,” as described below, while employed by one or more
members of the Company Group, or within two years after the date your employment with the Company Group terminates, then your right to receive payment under the Agreement, to the extent still outstanding at that time, shall be completely forfeited.
A “Prohibited Activity” shall be deemed to have occurred, as determined by the Committee in its sole and absolute discretion, if you (i) divulge any non-public, confidential or proprietary information of the Company or of its
past, present or future affiliates (collectively, the “Baker Hughes Group”), but excluding information that (a) becomes generally available to the public other than as a result of your public use, disclosure, or fault, or
(b) becomes available to you on a non-confidential basis after your employment termination date from a source other than a member of the Baker Hughes Group prior to the public use or disclosure by you, provided that such source is not
bound by a confidentiality agreement or otherwise prohibited from transmitting the information by a contractual, legal or fiduciary obligation, or (ii) directly or indirectly, consult with or become affiliated with, conducts, participate or
engage in, or becomes employed by, any business that is competitive with the business of any member of the Baker Hughes Group, wherever from time to time conducted throughout the world, including situations where you solicit or participate in or
assist in any way in the solicitation or recruitment, directly or indirectly, of any employees of any member of the Baker Hughes Group. 

  

	3.	CASHLESS EXERCISE. Cashless exercise, in accordance with the terms of the Plan, shall be available to Participant for the shares subject to the option. 

 

	4.	TAXES AND TAX WITHHOLDING. You should consult with your tax advisor concerning the tax consequences of exercising your option. To the extent that the receipt of the option or the Agreement, the vesting of the
option or the exercise of the option results in income to Participant for federal, state or local income, employment or other tax purposes with respect to which the Company Group has a withholding obligation, Participant shall deliver to the Company
at the time of such receipt, vesting or exercise, as the case may be, such amount of money as the Company Group may require to meet its obligation under applicable tax laws or regulations, and, if Participant fail to do so, the Company Group is
authorized to withhold from the shares subject to the option or from any cash or stock remuneration then or thereafter payable to Participant any tax required to be withheld by reason of such taxable income, including (without limitation) shares
subject to the option sufficient to satisfy the withholding obligation based on the last per share sales price of the common stock of the Company for the trading day immediately preceding the date that the withholding obligation arises, as reported
in the New York Stock Exchange Composite Transactions. 

  
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	5.	NONTRANSFERABILITY. Except as specified in these Terms and Conditions, the option and the Agreement are not transferable or assignable by Participant other than by will or the laws of descent and distribution,
and shall be exercisable during Participant’s lifetime only by Participant. 

  

	6.	CAPITAL ADJUSTMENTS AND REORGANIZATIONS. The existence of the option shall not affect in any way the right or power of the Company or any company the stock of which is issued pursuant to the Agreement to make or
authorize any adjustment, recapitalization, reorganization or other change in its capital structure or its business, engage in any merger or consolidation, issue any debt or equity securities, dissolve or liquidate, or sell, lease, exchange or
otherwise dispose of all or any part of its assets or business, or engage in any other corporate act or proceeding. 

  

	7.	EMPLOYMENT RELATIONSHIP. For purposes of the Agreement, Participant shall be considered to be in the employment of the Company Group as long as Participant have an employment relationship with the Company Group.
The Committee shall determine any questions as to whether and when there has been a termination of such employment relationship, and the cause of such termination, under the Plan and the Committee’s determination shall be final and binding on
all persons. 

  

	8.	NO RIGHTS AS A STOCKHOLDER. Participant shall not have any rights as a stockholder of the Company with respect to any shares covered by the option until the date of the issuance of the stock certificate or
certificates to Participant for such shares following exercise of the option pursuant to the Agreement and the Terms and Conditions and payment for the shares. No adjustment shall be made for dividends or other rights for which the record date is
prior to the date such certificate or certificates are issued. 

  

	9.	NOT AN EMPLOYMENT AGREEMENT. The Agreement is not an employment agreement, and no provision of the Agreement shall be construed or interpreted to create an employment relationship between Participant and the
Company or any of its Affiliates or guarantee the right to remain employed by the Company or any of its Affiliates for any specified term. 

  

	10.	SECURITIES ACT LEGEND. If Participant is an officer or affiliate of the Company under the Securities Act of 1933, Participant consents to the placing on any certificate for the Shares of an appropriate legend
restricting resale or other transfer of the Shares except in accordance with such Act and all applicable rules thereunder. 

  

	11.	LIMIT OF LIABILITY. Under no circumstances will the Company Group be liable for any indirect, incidental, consequential or special damages (including lost profits) of any form incurred by any person,
whether or not foreseeable and regardless of the form of the act in which such a claim may be brought, with respect to the Plan or the Company’s role as Plan sponsor. 

 

	12.	DATA PRIVACY. The Company’s Human Resources Department in Houston, Texas (U.S.A.) administers and maintains the data regarding the Plan, the awardees and the stock options granted to awardees for all
employees in the Company Group worldwide. 

 The data administered and maintained by the Company includes information that may
be considered personal data, including the name of the awardee, the award granted and the number of shares of stock subject to any stock option award (“Employee Personal Data”). From time to time during the course of your employment
in the Company Group, the Company may transfer certain of your Employee Personal Data to Affiliates as necessary for the purpose of implementation, administration and management of your participation in the Plan (the “Purposes”),
and the Company and its Affiliates may each further transfer your Employee Personal Data to any third parties assisting the Company in the implementation, administration and management of the Plan (collectively, “Data Recipients”).
The countries to which your Employee Personal Data may be transferred may have data protection standards that are different than those in your home country and that offer a level of data protection that is less than that in your home country. 

In accepting the award of the stock option set forth in the Agreement, you hereby expressly acknowledge that you understand that from time to
time during the course of your employment in the Company Group the Company may transfer your Employee Personal Data to Data Recipients for the Purposes. You further acknowledge that you understand that the countries to which your Employee Personal
Data may be transferred may have data protection standards that are different than those in your home country and that offer a level of data protection that is less than that in your home country. 

  
 3 

 Further, in accepting the award of the stock option set forth in the Agreement, you hereby
expressly affirm that you do not object, and you hereby expressly consent, to the transfer of your Employee Personal Data by the Company to Data Recipients for the Purposes from time to time during the course of your employment in the Company Group.

  

	13.	RECOUPMENTS. If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under applicable securities laws, if
you are then a current or former executive officer of the Company you shall forfeit and must repay to the Company any compensation awarded under the Agreement to the extent specified in any of the Company’s compensation recoupment policies
established or amended (now or in the future) in compliance with the rules and standards of the Securities and Exchange Commission Committee under or in connection with Section 954 of the Dodd-Frank Wall Street Reform and Consumer Protection
Act. Further, if the Company is required to prepare an accounting restatement due in whole or in part to your misconduct, you shall forfeit and must repay to the Company any compensation awarded under the Agreement to the extent required by the
Board of Directors of the Company in accordance with the terms of the Company’s compensation recoupment policy as in effect on January 23, 2014. 

  

	14.	MISCELLANEOUS. The Agreement and the option are awarded pursuant to and are subject to all of the provisions of the Plan, which are incorporated by reference herein, including all amendments to the Plan,
if any. In the event of a conflict between these Terms and Conditions and the Plan provisions, the Plan provisions will control. The terms “you” and “your” refer to the Participant named in the Agreement.
Capitalized terms that are not defined herein shall have the meanings ascribed to such terms in the Plan or the Agreement. 

  
 4

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