Document:

exv10w38

Exhibit 10.38

Hudson City Bancorp, Inc.

2006 Stock Incentive Plan

Deferred Stock Unit Award Notice

Name:

ID Number:

Address:

This Deferred Stock Unit Award Notice is intended to set forth the terms and conditions on which a
Deferred Stock Unit Award has been granted under the Hudson City Bancorp, Inc. 2006 Stock Incentive
Plan. Set forth below are the specific terms and conditions applicable to this Deferred Stock Unit
Award. Attached as Exhibit A are its general terms and conditions.

	 	 	 	 	 	 	 	  	 
	 	 	(A)	 	(B)	 	(C)	 	    Total    
	Deferred Stock Units
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Effective Date
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Class of Shares*

	 	Common
	 	Common
	 	Common	 	 
	 
	 	 	 	 	 	 	 	 
	No. of Awarded Units*
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Compensation for Service as
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Vesting Date*
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Settlement Date*

	 	First day of the first
	 	First day of the first
	 	First day of the first	 	 
	 

	 	calendar month after
	 	calendar month after
	 	calendar month after	 	 
	 

	 	the six-month
	 	the six-month
	 	the six-month	 	 
	 

	 	anniversary of
	 	anniversary of
	 	anniversary of	 	 
	 

	 	termination of service
	 	termination of service
	 	termination of service	 	 
	 
	 	 	 	 	 	 	 	 
	Medium of Settlement

	 	Shares of Common
	 	Shares of Common
	 	Shares of Common	 	 
	 

	 	Stock
	 	Stock
	 	Stock	 	 
	 
	 	 	 	 	 	 	 	 
	Voting Rights

	 	None prior to
	 	None prior to
	 	None prior to	 	 
	 

	 	Settlement Date
	 	Settlement Date
	 	Settlement Date	 	 
	 
	 	 	 	 	 	 	 	 
	Dividend Equivalent Rights
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Vested Units

	 	Yes
	 	Yes
	 	Yes	 	 
	 
	 	 	 	 	 	 	 	 
	Unvested Units

	 	Yes
	 	Yes
	 	Yes	 	 

 

			
	*	 	Subject to adjustment as provided in the Plan and Exhibit A.

By signing where indicated below, Hudson City Bancorp, Inc. (the “Company”) grants this Deferred
Stock Unit Award upon the specified terms and conditions, and the Award Recipient acknowledges
receipt of this Deferred Stock Unit Award Notice, including Exhibit A, and agrees to observe and be
bound by the terms and conditions set forth herein.

	 	 	 	 	 	 	 

	Hudson City Bancorp, Inc.	 	 	 	Award Recipient
	 
	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	Ronald E. Hermance, Jr.	 	 	 	 
	 

	 	Chairman, and CEO	 	 	 	 

 

 

EXHIBIT A

Hudson City Bancorp, Inc. 2006 Stock Incentive Plan

Deferred Stock Unit Award Notice

General Terms and Conditions

     Section 1. Size and Type of Award. A Deferred Stock Unit (a “Unit”) represents a
right to receive one share of Common Stock, par value $.01 per share, (a “Share”) of Hudson City
Bancorp, Inc. (the “Company”), or, to the extent provided in the Award Notice, as defined below, a
monetary value equal to the Fair Market Value of a Share, on a specified future date if certain
conditions have been satisfied. The number of Units awarded to you (the ”Awarded Units”) is shown
on the Deferred Stock Award Notice to which these General Terms and Conditions are attached (the
“Award Notice”). Units may be awarded as compensation for service either an a non-employee
director or as an officer or employee of the Company or certain affiliates. The Award Notice
states the services for which you have been awarded the Awarded Units.

     Section 2. Vesting and Transfer Restrictions.

     (a) Vesting Dates. The Vesting Dates for your Awarded Units are specified on the
Award Notice. As a general rule, you must remain in the continuous service of the Company,
Hudson City Savings Bank or an affiliate of the Company by which you are employed (your “Employer”)
through a Vesting Date shown in this Award Notice in order to be vested in the Awarded Units that
vest on that date.

     (b) Accelerated Vesting. Your Awarded Units that have not previously vested and that
are scheduled to vest during the six-month period beginning on the date of your termination of
service due to your death or Disability (as defined in the Plan), will become fully and immediately
vested, without any further action on your part, upon your death or Disability before your
termination of service with the Company. In addition, in the event of a Change in Control (as
defined in the Plan):

     (i) if the Awarded Units represent compensation for services as a non-employee
director, they will be fully and immediately vested upon the occurrence of a Change
in Control; and

     (ii) if the Awarded Units represent compensation for services as an officer or
employee, they will be fully and immediately vested upon your subsequent discharge
without Cause (as defined in the Plan) or your resignation with Good Reason. You
will be considered to have Good Reason for a voluntary resignation if the effective
date of resignation occurs within ninety (90) days after any of the following: (a)
the failure of your Employer (whether by act or omission of its Board of Directors,
or otherwise) to appoint or re-appoint or elect or re-elect you to the position(s)
which you held immediately prior to the Change in Control (other than to any such
position as an officer of its Board of Directors), or to a more senior office; (b)
if you are or become a member of the Board of Directors of your Employer, the
failure of the shareholders (whether in an election in which you stand as a nominee
or in an election where you are not a nominee) to elect or re-elect you to
membership at the expiration of your term of membership, unless such failure is a
result of your refusal to stand for election; (c) a material failure by your
Employer, whether by amendment of its certificate of incorporation or organization,
by-laws, action of its Board of Directors or otherwise, to vest in you the
functions, duties, or responsibilities prescribed in an employment or retention
agreement (other than such functions, duties or responsibilities associated with a
position as an officer of the Board of Directors); provided that you shall have
given notice of such failure to the Company and your Employer and your Employer has
not fully cured such failure within thirty (30) days after such notice is deemed
given; (d) any reduction of your rate of base salary in effect from time to time,
whether or not material, or any failure (other than due to reasonable administrative
error that is cured promptly upon notice) to pay any portion of your compensation as
and when due; (e) any change in the terms and conditions of any compensation or
benefit program in which you participate which, either individually or together with
other changes, has a material adverse effect on the aggregate value of your total
compensation package, disregarding for this purpose any change that results from an
across-the-board reduction that affects all similarly situated employees in a
similar manner; provided that you shall have given notice of such material adverse
effect to the Company and your Employer, and your Employer has not fully cured such
failure within thirty (30) days after such notice is deemed given; (f) any material
breach by your Employer of any material term, condition or covenant contained in an
employment or retention agreement; provided that you shall have given notice of such
material breach to the Company and your Employer, and your Employer has not fully
cured such failure within thirty (30) days after such notice is deemed given; (g) a
change in your principal place of employment, without your consent, to a place that
is not the principal executive office of your Employer or a relocation of your
Employer’s principal executive office to a location that is both more than
twenty-five (25) miles away from your principal residence and more than twenty-five
(25) miles away from the location of your Employer’s principal executive office on
the date of the Change in Control; or (h) if you are the Chief Executive Officer of
the Company immediately prior to the Change in Control, any event or series of
events that results in your ceasing to be the Chief Executive Officer (or most
senior executive officer, however denominated) of a successor company (I) whose
common equity securities are traded on a national securities exchange and

 

 

(II) that
is the owner of
100% of the outstanding common stock of Hudson City Savings Bank or its
successor and (III) that is not controlled (within the meaning of the federal Change
in Bank Control Act) by any other person or entity.

     (c) Forfeitures. If you terminate service with the Company prior to a Vesting Date,
you will forfeit any Awarded Units that are scheduled to vest on that Vesting Date, except to the
extent the accelerated vesting provisions apply. When you forfeit Awarded Units, all of your
interest in the Awarded Units and any related Dividend Equivalents will be canceled without
consideration.

     (d) Definition of Service. For purposes of determining the vesting of your Awarded
Units, you will be deemed to be in the service of the Company for so long as you serve in any
capacity as an employee, officer, non-employee director or consultant of the Company or Hudson City
Savings Bank.

     (e) Transfer Restrictions.

     (i) General Rule. As a general rule, you may not sell, assign,
transfer, give away, pledge or hypothecate, directly or indirectly, in any manner,
your rights to Deferred Stock Units and any related Dividend Equivalents.

     (ii) Beneficiaries. You may designate a Beneficiary to receive any
Awarded Units that vest on account of your death. To name a Beneficiary, complete
the attached Appendix A and file it with the Corporate Secretary of Hudson City
Bancorp, Inc.

     (iii) Testamentary Transfers. In the absence of an effective
Beneficiary designation, your Awarded Units may be transferred upon your death by
will or the laws of descent and distribution.

     Section 3. No Dividend or Voting Rights; Dividend Equivalents.

     (a) Awarded Units represent a contingent right to receive Shares in the future. They do not
represent a current interest in issued and outstanding Shares. Therefore, your Awarded Units do
not carry voting rights or entitle you to receive dividends.

     (b) If and to the extent stated in the Award Notice, you have been awarded equivalents with
respect to your vested and/or unvested Awarded Units. Each Dividend Equivalent represents the
right to receive a monetary payment equal to the cash dividend payable with respect to one Share
for each dividend record date that occurs after the Award Date and prior to the date the related
Awarded Unit is settled or forfeited (whichever happens first).

     Section 4. Settlement of Awarded Units.

     (a) The Settlement Date for your Awarded Units is shown on the Award Notice. If the
Settlement Date is based on your Termination of Service, then:

     (i) if the Awarded Units represent compensation for service as a non-employee
director, your Termination of Service occurs when you have ceased performing any
services as a non-employee director to the Company or any of its affiliates; and

     (ii) If the Awarded Units represent compensation for service other than as a
non-employee director, your Termination of Service occurs when you have ceased
performing any services to the Company or any of its affiliates, except for service
as a non-employee director.

On the Settlement Date, each of your outstanding and vested Awarded Units will, automatically and
without any action on your part, be converted into one Share (if the Award Notice states that
Shares are the medium of settlement) or a monetary payment equal to the Fair Market Value of a
Share on the Settlement Date (if the Award Notice states that cash is the medium of settlement).
The Awarded Units will be canceled and the Shares (or, if applicable, monetary payments) into which
they have been converted will be transferred to you or at your direction. On and after the record
date for this transfer, any Shares transferred will have the same voting and dividend rights
applicable to other issued and outstanding Shares.

     (b) If a Change in Control (as defined in the Plan) occurs and such a Change in Control also
constitutes a “change in ownership or effective control” of your “service recipient” or a “change
in ownership or effective control” of “a substantial portion of the assets” of your ”service
recipient” (in each case as defined in section 409A of the Internal Revenue Code of 1986 and the
regulations thereunder) then the date of the Change in Control shall be the Settlement Date for
each Awarded Unit that is vested and outstanding as of such date..

     Section 5. Taxes. The Company’s obligation to deliver Shares in settlement of the
Awarded Units is conditioned on your making arrangements satisfactory to the Company for the
funding and remittance to the applicable authorities of any and all federal, state and local taxes
required to be withheld and remitted at the source. The Company, in its discretion, may require
that funds needed to satisfy minimum required federal, state and local income and payroll tax
withholding be obtained by disposition to the Company, on the Settlement Date, of Shares issued in
settlement of vested Awarded Units having a Fair Market Value equal to the amount of tax required
to be withheld. All monetary payments made under this Award Notice are subject to applicable
federal, state and local withholding requirements.

     Section 6. Notices. Any communication required or permitted to be given under the
Plan, including any notice, direction, designation, comment, instruction, objection or waiver,
shall be in writing and shall be deemed to have been given at such time as it is

 

 

delivered
personally or five (5) days after mailing if mailed, postage prepaid, by registered or certified
mail, return receipt requested,
addressed to such party at the address listed below, or at such other address as one such
party may by written notice specify to the other party:

     If to the Company:

Hudson City Bancorp, Inc.

West 80 Century Road

Paramus, New Jersey 07652

Attention: Corporate Secretary

     If to the Recipient, to the Recipient’s address as shown in the Company’s records.

     Section 7. Successors and Assigns. This Award Notice shall inure to the benefit of
and shall be binding upon the Company and you and the Company’s and your respective heirs,
successors and assigns.

     Section 8. Construction of Language. Whenever appropriate in the Award Notice, words
used in the singular may be read in the plural, words used in the plural may be read in the
singular, and words importing the masculine gender may be read as referring equally to the feminine
or the neuter. Any reference to a section shall be a reference to a section of this Unit Award
Notice, unless the context clearly indicates otherwise. Capitalized terms not specifically defined
herein shall have the meanings assigned to them under the Plan, as amended from time to time.

     Section 9. Governing Law. This Award Notice shall be construed, administered and
enforced according to the laws of the State of New Jersey without giving effect to the conflict of
laws principles thereof, except to the extent that such laws are preempted by the federal law. The
federal and state courts located in Bergen County, New Jersey shall have exclusive jurisdiction
over any claim, action, complaint or lawsuit brought under the terms of the Plan. By accepting any
Awarded Units granted under this Award Notice, you, and any other person claiming any rights under
the Award Notice, agree to submit yourself or himself, and any such legal action as you or he shall
bring under the Plan (whether or not related to this Award Notice or these Awarded Units), to the
sole jurisdiction of such courts for the adjudication and resolution of any such disputes.

     Section 10. Amendment. This Award Notice may be amended, in whole or in part and in
any manner not inconsistent with the provisions of the Plan, at any time and from time to time, by
written agreement between the Company and you. No such amendment, however, shall be effective
unless (a) it is designated as an amendment and (b) it refers expressly to this Award Notice.

     Section 11. Plan Provisions Control. This Award Notice and the rights and
obligations created hereunder shall be subject to all of the terms and conditions of the Plan. In
the event of any conflict between the mandatory provisions of the Plan and the provisions of this
Award Notice, the terms of the Plan, which are incorporated herein by reference, shall control. In
the event of any conflict between the non-mandatory provisions of the Plan and the provisions of
this Award Notice, the provisions of this Award Notice shall control. By signing this Award
Notice, you acknowledge receipt of a copy of the Plan. You acknowledge that you may not and will
not rely on any statement of account or other communication or document issued in connection with
the Plan other than the Plan, this Award Notice, and any document signed by an authorized
representative of the Company that is designated as an amendment of the Plan or this Award Notice.

 

 

Appendix A to Deferred Stock Unit Award Notice

Hudson City Bancorp, Inc. 2006 Stock Incentive Plan

Beneficiary Designation Form — Deferred Stock Unit Award

			
	GENERAL
INFORMATION	 	Use this form to designate the Beneficiary(ies) who may receive Deferred Stock Unit Awards that become vested at your death.

	 	 	 

	Name of Person

Making Designation:

	 	Employee No.:

			
	BENEFICIARY

DESIGNATION	 	Complete sections A and B. If no percentage of shares is specified, each Beneficiary in the same class (primary or contingent) shall have an
equal share. If any designated Beneficiary predeceases you, the shares of each remaining Beneficiary in the same class (primary or contingent)
shall be increased proportionately.

A. PRIMARY BENEFICIARY(IES). I hereby designate the following person as my primary Beneficiary
under the Plan, reserving the right to change or revoke this designation at any time prior to my
death as to all outstanding Awarded Units:

	 	 	 	 	 	 	 	 	 	 	 
	Name	 	Address	 	Relationship	 	Birthdate	 	Share
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	%
	 

	 	 
	 	 
	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	%
	 

	 	 
	 	 
	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	%
	 

	 	 
	 	 
	 	 
	 	 	 	 
	 

	 	 	 	 	 	 	 	Total = 100	%

B. CONTINGENT BENEFICIARY(IES). I hereby designate the following person(s) as my contingent
Beneficiary(ies) under the Plan to receive benefits only if all of my primary Beneficiaries should
predecease me, reserving the right to change or revoke this designation at any time prior to my
death as to all outstanding Awarded Units:

	 	 	 	 	 	 	 	 	 	 	 
	Name	 	Address	 	Relationship	 	Birthdate	 	Share
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	%
	 

	 	 
	 	 
	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	%
	 

	 	 
	 	 
	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	%
	 

	 	 
	 	 
	 	 
	 	 	 	 
	 

	 	 	 	 	 	 	 	Total = 100	%

S
I
G
N

H
E
R
E

	 	 	 	 	 	 	 

	I understand that this Beneficiary Designation
shall be effective only if properly completed and
received by the Corporate Secretary of Hudson City
Bancorp, Inc. prior to my death, and that it is
subject to all of the terms and conditions of the
Plan. I also understand that an effective Beneficiary
designation revokes my prior designation(s) with
respect to all outstanding Deferred Stock Unit Awards
under the Hudson City Bancorp, Inc. 2006 Stock
Incentive Plan.
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

Date
	 	 

Internal Use Only

	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 
	 	This Beneficiary Designation was received by Human Resources
Dept. of Hudson City Bancorp, Inc. on the date indicated.	 	 	Comments	 
	 	 
	 	 	 	 	 	 	 	 
	 	By
	 	 	 	 	 	 	 	 
	 	 

	 	 

Authorized Signature
	 	 

Dateexv10w2

Exhibit 10.2

AGREEMENT OF RESIGNATION, APPOINTMENT AND ACCEPTANCE

     AGREEMENT, dated as of December 15, 2010 by and among BP Exploration (Alaska) Inc., a Delaware
corporation having its principal office at 1014 Energy Court, Anchorage, Alaska 99503 (the
“Company”), The Bank of New York Mellon (formerly, The Bank of New York), a New York banking
corporation having its principal corporate trust office at 101 Barclay Street, New York, New York
10286 (the “Resigning Trustee”) and The Bank of New York Mellon Trust Company, N.A., a national
banking association having a corporate trust office at 919 Congress Avenue, Suite 500, Austin,
Texas 78701 (the “Successor Trustee”).

RECITALS:

     WHEREAS, there are currently issued and outstanding 21,400,000 units of beneficial interest
(“Units”) in the BP Prudhoe Bay Royalty Trust (the “Trust”), created under the BP Prudhoe Bay
Royalty Trust Agreement dated February 28, 1989 among The Standard Oil Company, BP Exploration
(Alaska) Inc., The Bank of New York, Trustee, and F. James Hutchinson, Co-Trustee (the “Trust
Agreement”);

     WHEREAS, Section 8.02 of the Trust Agreement provides that the Trustee may at any time resign
by giving notice of such resignation to the Company confirmed in writing, which resignation shall
become effective upon the acceptance by a successor Trustee of its appointment as the successor
Trustee;

     WHEREAS, Section 8.03 of the Trust Agreement provides that, if the Trustee shall have given
notice of its intention to resign, the Company shall appoint a successor Trustee;

     WHEREAS, Sections 8.02 and 8.03 of the Trust Agreement provide that the resigning Trustee
shall give written notice of its resignation and the appointment of a successor Trustee to

 

 

each Unit Holder at such Unit Holder’s last address as shown by the records of the resigning
Trustee;

     WHEREAS, Section 8.04 of the Trust Agreement provides that immediately upon the appointment of
any successor Trustee, all rights, titles, duties, powers and authority of the resigning Trustee
shall be vested in and undertaken by the successor Trustee, which shall be entitled to receive from
the Trustee which it succeeds, an accounting pursuant to Section 8.02(a) of the Trust Agreement and
all of the Trust Estate held by the resigning Trustee and all records and files in connection
therewith;

     WHEREAS, pursuant to Section 3.06 of the Trust Agreement, Resigning Trustee was appointed
Transfer Agent and Registrar with respect to all the Units issued and registered under the Trust
Agreement;

     WHEREAS, the Company desires to appoint Successor Trustee as Trustee, Transfer Agent and
Registrar with respect to all the Units heretofore and hereafter issued and registered under the
Trust Agreement to succeed Resigning Trustee under the Trust Agreement; and

     WHEREAS, Successor Trustee is willing to accept such appointment as Trustee, Transfer Agent
and Registrar under the Trust Agreement;

     NOW, THEREFORE, the Company, Resigning Trustee and Successor Trustee, for and in consideration
of the premises and of other good valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, hereby consent and agree as follows:

2

 

ARTICLE I

THE RESIGNING TRUSTEE

     Section 1.1. Pursuant to Section 8.02 of the Trust Agreement, Resigning Trustee notifies the
Company that Resigning Trustee hereby resigns as Trustee under the Trust Agreement.

     Section 1.2. Resigning Trustee represents and warrants to Successor Trustee that:

	 	(a)	 	No covenant or condition contained in the Trust Agreement has been waived by
Resigning Trustee or, to the best of the knowledge of the responsible officers of
Resigning Trustee’s Corporate Trust and Agency Group, by Unit Holders owning the
percentage of outstanding Units required by the Trust Agreement to effect any such
waiver.
	 
	 	(b)	 	There is no action, suit or proceeding pending or, to the best of the knowledge
of the responsible officers assigned to Resigning Trustee’s Corporate Trust and Agency
Group, threatened against Resigning Trustee before any court or any governmental
authority arising out of any action or omission by Resigning Trustee as Trustee,
Registrar or Transfer Agent under the Trust Agreement.
	 
	 	(c)	 	Pursuant to Article III of the Trust Agreement, the Trust issued Certificates
evidencing ownership of 21,400,000 Units, which Units are outstanding as of the
Effective Date (as hereinafter defined).
	 
	 	(d)	 	Each person who signed the Certificates on behalf of the Trust was duly
elected, qualified and acting as an officer of Resigning Trustee and empowered to
execute the Certificates at the respective times of issuance and the signature of such

3

 

	 	 	 	person or persons appearing on such Certificates is each such person’s genuine
signature.

	 	(e)	 	This Agreement has been duly authorized, executed and delivered on behalf of
Resigning Trustee and constitutes its legal, valid and binding obligation.
	 
	 	(f)	 	To the best of the knowledge of the responsible officers of Resigning Trustee’s
Corporate Trust and Agency Group, Resigning Trustee is in compliance in all material
respects with the duties and obligations of the Trustee under the Trust Agreement.

     Section 1.3. Resigning Trustee hereby assigns, transfers, delivers and confirms to Successor
Trustee all the rights, titles, duties, powers, and authority of Resigning Trustee under the Trust
Agreement and the Trust Conveyance and all property and money held by Resigning Trustee under the
Trust Agreement. Resigning Trustee shall execute and deliver such further instruments and shall do
such other things as Successor Trustee may reasonably require so as to more fully and certainly
vest and confirm in Successor Trustee all the rights, trusts and powers hereby assigned,
transferred, delivered and confirmed to Successor Trustee as Trustee, Registrar and Transfer Agent.

     Section 1.4. Resigning Trustee shall deliver to Successor Trustee, as of or as soon as
practicable after the Effective Date, all of the Trust Estate held by Resigning Trustee (including
but not limited to the cash and short-term investments in the “BP Prudhoe Bay Royalty Trust
Reserve,” held in Account No. 294501 with The Bank of New York Mellon in the name of the Trust).
Resigning Trustee shall deliver to Successor Trustee such files and documents related to the Trust
and the Units that Successor Trustee reasonably may request from time to time.

4

 

     Section 1.5. Promptly, and in any event within ten days, after the Effective Date, Resigning
Trustee shall cause a notice, substantially in the form of Exhibit A annexed hereto, to be sent to
each Unit Holder in accordance with the provisions of Sections 8.02 and 8.03 of the Trust
Agreement.

ARTICLE II

THE COMPANY

     Section 2.1. The Company hereby accepts the resignation of Resigning Trustee as Trustee,
Registrar and Transfer Agent under the Trust Agreement with respect to all Units heretofore or
hereafter issued pursuant thereto.

     Section 2.2. The Company hereby appoints Successor Trustee as Trustee, Registrar and Transfer
Agent under the Trust Agreement with respect to all Units heretofore issued and delivered pursuant
thereto, to succeed to, and vests Successor Trustee with, all the rights, powers, trusts and duties
of Resigning Trustee under the Trust Agreement as Trustee, Registrar and Transfer Agent from the
Effective Date forward.

     Section 2.3. The Company represents and warrants to Resigning Trustee and Successor Trustee
that:

	 	(a)	 	The Trust Agreement was validly and lawfully executed and delivered by the
Company, has not been amended or modified and is in full force and effect.

	 	(b)	 	The Company has performed or fulfilled prior to the date hereof, and will
continue to perform and fulfill after the date hereof, each material covenant,
agreement, condition, obligation and responsibility on its part to be performed under
the Trust Agreement and the Overriding Royalty Conveyance.

5

 

	 	(c)	 	No covenant or condition contained in the Trust Agreement has been waived by
the Company or, to the best of the Company’s knowledge, by Unit Holders owning the
percentage of the outstanding Units required to effect any such waiver.
	 
	 	(d)	 	There is no action, suit or proceeding pending or, to the best of the Company’s
knowledge, threatened against the Company before any court or any governmental
authority arising out of any action or omission by the Company under the Trust
Agreement.
	 
	 	(e)	 	This Agreement has been duly authorized, executed and delivered on behalf of
Company and constitutes its legal, valid and binding obligation.
	 
	 	(f)	 	All conditions precedent relating to the appointment of The Bank of New York
Mellon Trust Company, N.A., as Successor Trustee, Registrar and Transfer Agent under
the Trust Agreement have been complied with by the Company.

ARTICLE III

THE SUCCESSOR TRUSTEE

     Section 3.1. Successor Trustee represents and warrants to Resigning Trustee and to the Company
that:

	 	(a)	 	Successor Trustee is qualified and eligible under the provisions of Article Six
of the Trust Agreement to act as Trustee under the Trust Agreement. In making this
representation and warranty, Successor Trustee is relying upon the representations and
warranties of both Resigning Trustee and the Company regarding the Trust Agreement.

6

 

	 	(b)	 	This Agreement has been duly authorized, executed and delivered on behalf of
Successor Trustee and constitutes its legal, valid and binding obligation.

     Section 3.2. Successor Trustee hereby accepts its appointment as successor Trustee, Registrar
and Transfer Agent under the Trust Agreement with respect to all Units heretofore or hereafter
issued and delivered pursuant thereto and all property and money held or to be held under the Trust
Agreement and accepts the rights, powers, trusts, duties and obligations of Resigning Trustee as
Trustee, Registrar and Transfer Agent under the Trust Agreement with respect to all Units
heretofore or hereafter issued pursuant thereto and all property and money held or to be held under
the Trust Agreement, upon the terms and conditions set forth therein, from the Effective Date
forward.

     Section 3.3. Upon receipt from the Company of the payment attributable to the Royalty Interest
for the quarter ending December 31, 2010, Successor Trustee shall pay to Resigning Trustee from
such amount (a) the pro-rated portion of the quarterly administrative fee accrued pursuant to
Section 7.03 of the Trust Agreement for the period from October 1, 2010 to the Effective Date, and
(b) all accrued fees due to Resigning Trustee in its capacity as Registrar and Transfer Agent for
the period from October 1, 2010 to the Effective Date, upon presentation of Resigning Trustee’s
invoice therefor. Successor Trustee will notify all attorneys, accountants, engineers and other
persons providing services or goods to the Trust of its succession as Trustee and will reimburse
Resigning Trustee in full from the Trust Estate for all unpaid expenses, disbursements and advances
incurred or made by Resigning Trustee prior to the Effective Date in accordance with the provisions
of the Trust Agreement.

7

 

ARTICLE IV

MISCELLANEOUS

     Section 4.1. Capitalized terms not otherwise defined herein shall have the respective meanings
assigned to them in the Trust Agreement.

     Section 4.2. This Agreement and the resignation, appointment and acceptance effected hereby
shall be effective as of the close of business on the date first set forth above (the “Effective
Date”).

     Section 4.3. This Agreement shall be governed by and construed in accordance with the laws of
the State of Delaware, without regard to principles of conflicts of law.

     Section 4.4. This Agreement may be executed in any number of counterparts each of which shall
be an original, but such counterparts shall together constitute but one and the same instrument.

     Section 4.5. The Company, Resigning Trustee and Successor Trustee hereby acknowledge receipt
of an executed counterpart of this Agreement and the effectiveness thereof.

8

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement of Resignation, Appointment
and Acceptance to be duly executed as of the day and year first above written.

	 	 	 	 	 
	Company:	 	BP EXPLORATION (ALASKA) INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Claire Fitzpatrick
	 

	 	 	 	 
	 

	 	Name:
	 	Claire Fitzpatrick
	 

	 	Title:
	 	Attorney-in-Fact
	 
	 	 	 	 
	Resigning Trustee:	 	THE BANK OF NEW YORK MELLON
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Ming J. Ryan
	 

	 	 	 	 
	 

	 	Name:
	 	Ming J. Ryan
	 

	 	Title:
	 	Vice President
	 
	 	 	 	 
	Successor Trustee:	 	THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Michael Ulrich
	 

	 	 	 	 
	 

	 	Name:
	 	Michael Ulrich
	 

	 	Title:
	 	Vice President

9

 

EXHIBIT A

[The Bank of New York Mellon letterhead]

To Holders of Units in the

BP Prudhoe Bay Royalty Trust:

     We are writing to notify you that The Bank of New York Mellon (‘BNYM”) resigned as Trustee of
the BP Prudhoe Bay Royalty Trust (the “Trust”) effective as of December 15, 2010.

     BP Exploration (Alaska) Inc. has appointed The Bank of New York Mellon Trust Company, N.A.
(the “Trust Company”) as successor Trustee of the Trust. The Trust Company has accepted its
appointment as successor Trustee and effective as of December 15, 2010 succeeded to the rights,
powers, trusts, duties and obligations of BNYM under the BP Prudhoe Bay Royalty Trust Agreement
dated February 28, 1989. BNY Mellon Trust of Delaware remains the Co-Trustee of the Trust.

     Holders of Units in the Trust who wish to communicate with the Successor Trustee about any
matter should write or call the following address and telephone number:

	 	 	 

	Mail address:

	 	The Bank of New York Mellon Trust Company, N.A.
	 

	 	919 Congress Avenue, Suite 500
	 

	 	Austin, TX 78701
	 

	 	Attention:
	 
	 	 
	Telephone:

	 	800-852-1422

	 	 	 

	Dated:

	 	 New York, NY
	 

	 	December ___, 2010

THE BANK OF NEW YORK MELLON

10

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