Document:

<PAGE>

                                                                   EXHIBIT 10.56

EXECUTION COPY

                            NON-COMPETITION AGREEMENT

     NON-COMPETITION AGREEMENT (this "Agreement"), dated as of May 1, 2002, by
and between CONSUMERS ENERGY COMPANY, a Michigan corporation (the "Seller"),
MICHIGAN TRANSCO HOLDINGS, LIMITED PARTNERSHIP, a Michigan limited partnership
(the "Buyer"), and MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC, a Michigan
limited liability company ("Transco"). Capitalized terms used herein and not
otherwise defined herein shall have the respective meanings ascribed to such
terms in the Membership Interest Purchase Agreement, dated as of October 24,
2001, between the Buyer and the Seller (the "Membership Interest Purchase
Agreement").

                                   WITNESSETH:

     WHEREAS, the Seller and the Buyer have entered into the Membership Interest
Purchase Agreement pursuant to which, inter alia, the Seller shall sell,
transfer and deliver to the Buyer, and the Buyer shall purchase and accept from
the Seller, the Interests upon the terms and conditions set forth in the
Membership Interest Purchase Agreement;

     WHEREAS, from and after the Closing Date, the Buyer and Transco will be
engaged, directly or indirectly, in the operation of the Purchased Assets in the
business of the transmission (as such term is described in FERC Order Number
888) ("Transmission") of electricity (the "Business"); and

     WHEREAS, as a condition precedent to the obligations of the Buyer and any
Person that directly or indirectly, through one or more intermediaries,
controls, is controlled by, or is under common control with, the Buyer (an
"Affiliate") to consummate the transactions contemplated by the Membership
Interest Purchase Agreement and the other Transaction Agreements, the Seller
shall execute and deliver to the Buyer and Transco at the Closing this
Agreement;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein and in the Membership Interest Purchase Agreement, and for
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, and intending to be legally bound, the parties hereto agree
as follows:

                                    ARTICLE I

                            NON-COMPETITION BY SELLER

     Section 1.01 Acknowledgments of Seller. The Seller acknowledges and agrees
that (a) prior to the date hereof, the Seller has developed and has been
integral to the operation of the Purchased Assets and the conduct of the
Business; (b) the Seller is in possession of and may have continued access to
trade secrets of and confidential information relating to the Purchased Assets
and the Business; (c) from and after the Closing, the Buyer and Transco will be
engaged directly or indirectly in the Business and the operation of the
Purchased Assets; (d) the agreements and covenants contained in this Agreement
are essential to protect the Business including, without

                                        1

<PAGE>

EXECUTION COPY

limitation, the goodwill of the Business which, along with the Purchased Assets,
are being acquired by the Buyer and Transco pursuant to the Membership Interest
Purchase Agreement; (e) the Buyer would not consummate the transactions
contemplated by the Membership Interest Purchase Agreement and the other
Transaction Agreements but for such agreements and covenants; and (f) the Seller
has received and will continue to receive substantial consideration from the
Buyer and Transco pursuant to the terms of the Membership Interest Purchase
Agreement and the other Transaction Agreements and the transactions contemplated
hereby and thereby.

     Section 1.02 Non-Compete. (a) The Seller agrees on behalf of itself and its
Subsidiaries (as defined in this Section 1.02) and Affiliates that for the
period commencing on the date of this Agreement and ending on the date which is
five (5) years after the Closing Date (the "Restricted Period"), the Seller
shall not, and shall cause its Subsidiaries and Affiliates not to, directly or
indirectly, whether or not for compensation, anywhere in the Restricted
Territory, (i) promote, participate or engage in the Business or (ii) own of
record, have any beneficial interest in, except for pre-payments by the Seller
or its Subsidiaries and Affiliates for Transmission upgrades required by the
Buyer, promote, control, manage or participate in any Person that engages in or
otherwise competes in the Business.

     (b) For purposes of this Agreement, (i) the term "Restricted Territory"
shall mean the service area in which the Seller and its Subsidiaries and
Affiliates conducted the Business at any time prior to the Closing Date and (ii)
the term "Subsidiary" shall mean any corporation, joint venture, partnership,
limited liability company or other entity of which the Seller, directly or
indirectly, owns or controls capital stock or other equity interests
representing more than fifty percent (50%) of the general voting power of such
entity.

     Section 1.03 Successors in Interest. In the event that the Seller sells,
transfers or leases all or substantially all of its assets, or is not the
surviving corporation in any merger, consolidation or other business combination
in which it may enter with any Person, in any case prior to the termination of
the Restricted Period, the Seller will cause such purchaser or surviving
corporation, as the case may be, to assume by written agreement (a copy of which
shall be provided to the Buyer) the Seller's obligations under this Agreement
and such assumption will be a condition precedent to the consummation of any
such transaction. The parties understand and agree that nothing in this
Agreement shall prohibit the Seller or any purchaser or surviving corporation or
Affiliates or Subsidiaries of such purchaser or surviving corporation
contemplated by this Section 1.03 from engaging in the business of the
Transmission of electricity, electric capacity or energy at any time in any
territory outside of the Restricted Territory.

                                        2

<PAGE>

EXECUTION COPY

                                   ARTICLE II

                                   ENFORCEMENT

     Section 2.01 Remedies. (a) The Seller acknowledges and agrees that any
breach of any of the provisions of this Agreement by the Seller or any of its
Subsidiaries or Affiliates will cause irreparable and substantial injury to the
Buyer, Transco and/or the Business and that money damages would not provide an
adequate remedy to the Buyer, Transco or any of their Affiliates, as the case
may be, and, in recognition of this fact, agrees that, in the event of such
breach, and in addition to any remedies at law it may have, the Buyer, Transco
and/or any of their Affiliates, without posting any bond, shall be entitled to
obtain equitable relief in the form of specific performance, a temporary
restraining order, a temporary or permanent injunction or any other equitable
remedy that may be available.

     (b) All of the remedies expressly provided for in this Agreement are
cumulative of any and all other remedies that the Buyer, Transco or any of their
Affiliates might have at law or in equity. In addition to the remedies provided
for in this Agreement, the Buyer, Transco and any of their Affiliates shall be
entitled to avail themselves of all such other remedies as might now or
hereafter exist at law or in equity for compensation and for the specific
enforcement of the covenants and agreements of the Seller contained herein.
Resort to any remedy provided for in this Agreement or by law shall not prevent
the concurrent or subsequent use of any other appropriate remedy or remedies and
shall not preclude recovery by the Buyer, Transco or any of their Affiliates of
monetary damages.

     Section 2.02 Necessity of Restrictions. The parties acknowledge and agree
that the covenants and agreements contained in this Agreement have been
negotiated in good faith by the parties, are reasonable and are not more
restrictive or broader than necessary to protect the interests of the Buyer,
Transco, any of their Affiliates and/or the Business, and would not achieve
their intended purpose if they were on different terms or for a period of time
shorter than the period of time provided herein or applied in more restrictive
geographical areas than are provided herein. Each party further acknowledges
that the Buyer would not enter into the Membership Interest Purchase Agreement
or the other Transaction Agreements (and consummate the transactions
contemplated hereby or thereby) in the absence of the covenants and agreements
contained in this Agreement and that such covenants and agreements are essential
to protect the Business and the operation of the Purchased Assets including,
without limitation, the goodwill associated therewith.

     Section 2.03 Severability. The Seller and each of the Buyer and Transco
expressly understands and agrees that although the parties consider the
covenants and agreements contained in this Agreement to be reasonable, if a
final non-appealable judicial determination is made by a court of competent
jurisdiction that (a) either the time or territory restrictions contained in
this Agreement is an unenforceable provision or restriction against the Seller
or its Subsidiaries or Affiliates, such provisions and restrictions of this
Agreement shall not be rendered void but shall be deemed amended without any
action on the part of any party hereto to apply as to such maximum time and
territory and to such maximum extent as such court may judicially determine or
indicate to be enforceable and (b) any other term or provision of this Agreement
is unenforceable, all other conditions and provisions of this Agreement shall

                                        3

<PAGE>

EXECUTION COPY

nevertheless remain in full force and effect and such unenforceable term or
provision will be interpreted so as to best accomplish the intent of the parties
within the limits of Applicable Law.

                                   ARTICLE III

                                  MISCELLANEOUS

     Section 3.01 Notices. All notices, requests, claims, demands and other
communications required or permitted to be given under this Agreement shall be
in writing and shall be delivered by hand or sent by confirmed facsimile (with
original to follow by first class mail, postage prepaid) or sent, postage
prepaid by registered or certified mail or internationally recognized overnight
courier service and shall be deemed given when so delivered by hand, or
facsimile, or if mailed, five (5) days after mailing (two (2) business day in
the case of overnight courier service) at the following addresses (or at such
other address for a party as shall be specified by like notice):

          (a)  if to the Buyer or Transco, to

               Michigan Electric Transmission Company, LLC.
               540 Avis Drive
               Suite H
               Ann Arbor, Michigan 48108
               Attention: Executive Vice President and Chief Operating Officer
               Telecopy: (202) 728-9613

               with a copy to:

               Pillsbury Winthrop LLP
               One Battery Park Plaza
               New York, New York 10004-1490
               Attention: Barton D. Ford, Esq.
               Telecopy: (212)858-1500

          (b)  if to the Seller, to

               Consumers Energy Company
               212 Michigan Avenue
               Jackson. Michigan 49201
               Attention: President
               Telecopy: (517)788-0258

     Section 3.02 Counterparts. This Agreement may be executed in two or more
counterparts, all of which shall be considered one and the same agreement and
shall become effective when one or more counterparts have been signed by each of
the parties and delivered to

                                        4

<PAGE>

EXECUTION COPY

the other parties.

     Section 3.03 Entire Agreement; No Third Party Beneficiaries. (a) This
Agreement together with the other Transaction Agreements supersedes any other
agreement, whether written or oral, that may have been made or entered into by
any party or any of their respective Subsidiaries or Affiliates (or by any
director, officer or representative thereof) with respect to the subject matter
hereof and thereof. This Agreement together with the other Transaction
Agreements constitutes the entire agreement by and between the parties hereto
and thereto with respect to the subject matter hereof and thereof and there are
not agreements or commitments by or between such parties or their Subsidiaries
or Affiliates with respect to the subject matter hereof or thereof except as
expressly set forth herein or therein.

     (b) Nothing in this Agreement, express or implied, is intended to confer on
any Person other than the parties hereto and their respective permitted
successors and assigns, any rights, remedies, obligations or liabilities under
or by reason of this Agreement.

     Section 3.04 Amendments. No modification or amendment of this Agreement and
no waiver of any of the terms or conditions hereof shall be valid or binding
unless made in writing and executed by all of the parties hereto.

     Section 3.05 Assignment. Neither this Agreement nor any of the rights,
interests or obligations under this Agreement shall be assigned, in whole or in
part, by operation of law or otherwise by any of the parties without the prior
written consent of the other parties, except that the Buyer or Transco may, in
its sole discretion, assign any of or all of its rights, interests and
obligations under this Agreement to any Affiliate of Trans-Elect, Inc., but no
such assignment shall relieve the Buyer or Transco, as the case may be, of any
of its obligations under this Agreement. Any purported assignment in violation
of this Section 3.05 shall be void. Subject to the preceding sentences, this
Agreement will be binding upon, inure to the benefit of, and be enforceable by,
the parties and their respective successors and assigns.

     Section 3.06 Governing Law. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Michigan.

     Section 3.07 Interpretation. In the event of an ambiguity or question of
intent or interpretation, this Agreement shall be construed as if drafted
jointly by the parties and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the extent to which any such
party or its counsel participated in the drafting of any provision hereof or by
virtue of the extent to which any such provision is inconsistent with any prior
draft hereof.

     Section 3.08 Headings. The headings in this Agreement are for reference
only, and will not affect the interpretation of this Agreement.

     Section 3.09 Waiver. The failure of the Buyer or Transco to enforce at any
time any of the provisions of this Agreement shall in no way be construed to be
a waiver of any such provision, nor in any way to affect the validity of this
Agreement or any part hereof or the right of the Buyer or Transco thereafter to
enforce each and every such provision. No waiver of any breach of or
non-compliance with this Agreement shall be held to be a waiver of any other or
subsequent breach or non-compliance.

                                        5

<PAGE>

EXECUTION COPY

     IN WITNESS WHEREOF, the parties have executed this Agreement on the date
first above written.

                                        CONSUMERS ENERGY COMPANY

                                        By: /s/ John Russell
                                            ------------------------------------
                                        Name: John Russell
                                        Title: President

                                        MICHIGAN TRANSCO HOLDINGS,
                                        LIMITED PARTNERSHIP

                                        By: /s/ Martin R. Walicki
                                            ------------------------------------
                                        Name: Martin R. Walicki
                                        Title: Managing Board Member of its
                                               General Partner

                                        MICHIGAN ELECTRIC TRANSMISSION
                                        COMPANY, LLC

                                        By: /s/ Martin R. Walicki
                                            ------------------------------------
                                        Name: Martin R. Walicki
                                        Title: Senior Vice President

                                        6

<PAGE>

                                      (MAP)exv10w1

 

Exhibit 10.1

Form 2006 Restricted Stock Unit Award for Employees

PRIDE INTERNATIONAL, INC.

1998 LONG-TERM INCENTIVE PLAN

RESTRICTED STOCK UNIT AGREEMENT

     This Restricted Stock Unit Agreement (“Agreement”) between PRIDE INTERNATIONAL, INC. (the
“Company”) and ___(the “Grantee”), an employee of the Company or one of its
Subsidiaries, regarding an award (“Award”) of ___units of Common Stock (as defined in the
Pride International, Inc. 1998 Long-Term Incentive Plan (the “Plan”), such Common Stock comprising
this Award referred to herein as “Restricted Stock Units”) awarded to the Grantee on ___
(the “Award Date”), such number of Restricted Stock Units subject to adjustment as provided in
Section 14 of the Plan, and further subject to the following terms and conditions:

     1. Relationship to Plan and Employment Agreement.

     This Award is subject to all of the terms, conditions and provisions of the Plan and
administrative interpretations thereunder, if any, which have been adopted by the Committee
thereunder and are in effect on the date hereof. Except as defined herein, capitalized terms shall
have the same meanings ascribed to them under the Plan. In addition, the parties agree that
notwithstanding any provision herein to the contrary, this Agreement shall be deemed modified by
the provisions of any employment agreement between the Grantee and the Company, and vesting of this
Award shall occur in the event stock options and other awards specifically vest under such
employment agreement. For purposes of this Agreement:

     (a) “Disability” means illness or other incapacity which prevents the Grantee from continuing
to perform the duties of his job for a period of more than three months.

     (b) “Employment” means employment with the Company or any of its Subsidiaries.

     (c) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     (d) “Retirement” means the Grantee’s termination of employment on or after attainment of age
65, or, if applicable to the Grantee, any earlier age specified as the Grantee’s Normal Retirement
Age under the Pride International, Inc. Supplemental Executive Retirement Plan.

 

 

     2. Vesting Schedule.

     (a) This Award shall vest in installments in accordance with the following schedule:

	 	 	 	 	 
	 	 	Additional Percentage of
	Date Vested	 	Award Vested
	 

	 	 	25	%
	 

	 	 	25	%
	 

	 	 	25	%
	 

	 	 	25	%
	 

	 	 	 	 
	 

	 	 	100	%

     (b) All shares of Restricted Stock Units subject to this Award shall vest, irrespective of the
limitations set forth in subparagraph (a) above, provided that the Grantee has been in continuous
Employment since the Award Date, upon the occurrence of:

(i) a Change in Control or

(ii) the Grantee’s termination of employment by reason of death,
Disability or Retirement.

     3. Forfeiture of Award.

     Except as provided in any other agreement between the Grantee and the Company, if the
Grantee’s employment terminates other than by reason of death, Disability or Retirement, all
unvested Restricted Stock Units as of the termination date shall be forfeited.

     4. Registration of Units.

     The Participant’s right to receive the Restricted Stock Units shall be evidenced by book entry
registration (or by such other manner as the Committee may determine).

     5. Dividend Equivalent Payments.

     The Company will pay dividend equivalents for each outstanding Restricted Stock Unit in cash
as soon as administratively practicable after dividends, if any, are paid on the Company’s
outstanding shares of Common Stock. Such payments shall be made no later than March 15th following
the year in which the dividends are paid.

     6. Shareholder Rights.

     The Participant shall have no rights of a shareholder with respect to shares of Common Stock
subject to this Award unless and until such time as the Award has been settled by the transfer of
shares of Common Stock to the Participant.

-2-

 

     7. Settlement and Delivery of Shares.

     Payment of vested Restricted Stock Units shall be made as soon as administratively practicable
after vesting, but in no case later than the March 15th following the year in which vesting occurs.
Settlement will be made by payment in shares of Common Stock.

     The Company shall not be obligated to deliver any shares of Common Stock if counsel to the
Company determines that such sale or delivery would violate any applicable law or any rule or
regulation of any governmental authority or any rule or regulation of, or agreement of the Company
with, any securities exchange or association upon which the Common Stock is listed or quoted. The
Company shall in no event be obligated to take any affirmative action in order to cause the
delivery of shares of Common Stock to comply with any such law, rule, regulation or agreement.

     8. Notices.

     Unless the Company notifies the Grantee in writing of a different procedure, any notice or
other communication to the Company with respect to this Award shall be in writing and shall be:

     (a) by registered or certified United States mail, postage prepaid, to Pride
International, Inc., Attn: Corporate Secretary, 5847 San Felipe, Suite 3300, Houston, Texas
77057; or

     (b) by hand delivery or otherwise to Pride International, Inc., Attn: Corporate
Secretary, 5847 San Felipe, Suite 3300, Houston, Texas 77057.

     Any notices provided for in this Agreement or in the Plan shall be given in writing and shall
be deemed effectively delivered or given upon receipt or, in the case of notices delivered by the
Company to the Grantee, five days after deposit in the United States mail, postage prepaid,
addressed to the Grantee at the address specified at the end of this Agreement or at such other
address as the Grantee hereafter designates by written notice to the Company.

     9. Assignment of Award.

     Except as otherwise permitted by the Committee, the Grantee’s rights under the Plan and this
Agreement are personal; no assignment or transfer of the Grantee’s rights under and interest in
this Award may be made by the Grantee other than by will or by the laws of descent and
distribution.

     Notwithstanding the foregoing, subject to the approval of the Committee, in its sole
discretion, the Award may be transferred by the Grantee to (i) the children or grandchildren of the
Grantee (“Immediate Family Members”), (ii) a trust or trusts for the exclusive benefit of such
Immediate Family Members (“Immediate Family Member Trusts”) or (iii) a partnership or partnerships
in which such Immediate Family Members have at least 99% of the equity, profit and loss interests
(“Immediate Family Member Partnerships”). Subsequent transfers of a transferred Award shall be
prohibited except by will or the laws of descent and distribution, unless such transfers are made
to the original Grantee or a person to whom the original Grantee

-3-

 

could have made a transfer in the manner described herein. No transfer shall be effective
unless and until written notice of such transfer is provided to the Committee, in the form and
manner prescribed by the Committee. Following transfer, the Award shall continue to be subject to
the same terms and conditions as were applicable immediately prior to transfer, and except as
otherwise provided herein, the term “Grantee” shall be deemed to refer to the transferee. The
consequences of termination of Employment shall continue to be applied with respect to the original
Grantee, following which the Awards shall vest only to the extent specified in the Plan and this
Agreement.

     10. Withholding.

     At the time of vesting of Restricted Stock Units or the delivery of shares of Common Stock
attributable to Restricted Stock Units, the amount of all federal, state and other governmental
withholding tax requirements imposed upon the Company with respect to the vesting of such
Restricted Stock Units or the delivery of such shares of Common Stock attributable to Restricted
Stock Units shall be remitted to the Company or provisions to pay such withholding requirements
shall have been made to the satisfaction of the Committee. The Committee may make such provisions
as it may deem appropriate for the withholding of any taxes which it determines is required in
connection with this Award. The Grantee may pay all or any portion of the taxes required to be
withheld by the Company or paid by the Grantee in connection with the all or any portion of this
Award by delivering cash, or, with the Committee’s approval, by electing to have the Company
withhold shares of Common Stock that would have otherwise been delivered to Grantee, or by
delivering previously owned shares of Common Stock, having a Fair Market Value equal to the amount
required to be withheld or paid. The Grantee may only request withholding Common Stock that would
have otherwise been delivered to the Grantee in connection with the vesting of Restricted Stock
Units having a Fair Market Value equal to the statutory minimum withholding amount. The Grantee
must make the foregoing election on or before the date that the amount of tax to be withheld is
determined. If the Grantee is subject to the short-swing profits recapture provisions of Section
16(b) of the Exchange Act, any such election shall be subject to such other restrictions as may be
established by the Committee in order that satisfaction of withholding tax obligations with shares
of Common Stock might be exempt from the operation of Section 16(b) of the Exchange Act in whole or
in part.

     11. Stock Certificates.

     Certificates representing the Common Stock issued pursuant to the Award will bear all legends
required by law and necessary or advisable to effectuate the provisions of the Plan and this Award.
The Company may place a “stop transfer” order against shares of the Common Stock issued pursuant
to this Award until all restrictions and conditions set forth in the Plan or this Agreement and in
the legends referred to in this Section 11 have been complied with.

     12. Successors and Assigns.

     This Agreement shall bind and inure to the benefit of and be enforceable by the Grantee, the
Company and their respective permitted successors and assigns (including personal representatives,
heirs and legatees), except that the Grantee may not assign any rights or

-4-

 

obligations under this Agreement except to the extent and in the manner expressly permitted
herein.

     13. No Employment Guaranteed.

     No provision of this Agreement shall confer any right upon the Grantee to continued Employment
with the Company or any Subsidiary.

     14. Governing Law.

     This Agreement shall be governed by, construed, and enforced in accordance with the laws of
the State of Texas.

     15. Amendment.

     This Agreement cannot be modified, altered or amended except by an agreement, in writing,
signed by both the Company and the Grantee.

     16. Section 409A.

     Notwithstanding anything in this Agreement to the contrary, if any provision in this Agreement
would result in the imposition of an applicable tax under Section 409A of the Code and related
regulations and United States Department of the Treasury pronouncements (“Section 409A”), that
provision will be reformed to avoid imposition of the applicable tax and no action taken to comply
with Section 409A shall be deemed to adversely affect the Grantee’s rights to an Award.

	 	 	 	 	 	 	 
	 	 	 	 	PRIDE INTERNATIONAL, INC.
	 
	 	 	 	 	 	 
	Date:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

     The Grantee hereby accepts the foregoing Restricted Stock Unit Agreement, subject to the terms
and provisions of the Plan and administrative interpretations thereof referred to above.

	 	 	 	 	 	 	 
	 	 	 	 	GRANTEE:
	 
	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 	 	 	 	 

-5-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}]]