Document:

Secured Note, dated March 24, 2010 from Ambac Assurance Corporation

 Exhibit 10.25 
 SECURED NOTE 
  

			
	 $2,000,000,000
	  	March 24, 2010

 FOR VALUE RECEIVED, AMBAC ASSURANCE CORPORATION, a Wisconsin domiciled financial guaranty insurance corporation (including successors and assigns, “Maker”), hereby
promises to pay to the SEGREGATED ACCOUNT OF AMBAC ASSURANCE CORPORATION, a segregated account of Ambac Assurance Corporation established as of March 24,
2010 (including successors and assigns, “Payee”), by no later than March 24, 2050, the principal amount of Two Billion Dollars ($2,000,000,000) (which amount shall be reduced to $0 at such time that the
liabilities and obligations of Payee under the Covered Policies have been paid, or otherwise satisfied, in full), and to pay interest on the outstanding principal of this Secured Note (as amended, restated, supplemented or otherwise modified from
time to time, this “Note”), as provided herein. 
 Recitals 
 A. Maker has established Payee pursuant to Section 611.24(2) of the Wisconsin Statutes with the approval of the Wisconsin Office of the
Commissioner of Insurance (“OCI”) and in accordance with the Plan of Operation for the Segregated Account of Ambac Assurance Corporation adopted by the Board of Directors of Maker, as amended from time to time (the
“Plan of Operation”). 
 B. In conjunction with the establishment of Payee, Maker allocated to Payee
certain insurance policy liabilities (the “Covered Policies”) and other liabilities, as more fully described in the Plan of Operation. Maker has issued this Note to support such liabilities. 
 C. In order to continue to support the liabilities associated with the Covered Policies upon payment in full of all principal under this
Note, Maker, as reinsurer, has agreed to reinsure the liability of Payee, as ceding company, under the Covered Policies pursuant to the terms of an Aggregate Excess of Loss Reinsurance Agreement dated as of the date hereof between Maker and Payee
(as amended, restated, supplemented or otherwise modified from time to time, the “Reinsurance Agreement”). 
 D. Immediately following the establishment of Payee and the execution of this Note and the Reinsurance Agreement, Payee will be the subject of an order for rehabilitation under Chapter 645 of the Wisconsin Statutes (the
“Proceeding”), whereupon the rehabilitator of Payee under the Proceeding (the “Rehabilitator”) will assume control of the management of Payee and conduct the business of Payee in accordance with a Plan
of Rehabilitation to be approved by the rehabilitation court pursuant to Section 645.33(5) of the Wisconsin Statutes (the “Plan of Rehabilitation”). At all times while Payee is subject to the Proceeding, the term
“Payee” as used herein shall be deemed to include, and Payee shall act exclusively through, the Rehabilitator, or his or her designee. 
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 1. PAYMENTS 
 1(a) Principal. 
 Subject to the first paragraph of this Note and to
clause 1(c) below, the outstanding principal under this Note shall be payable in full on March 24, 2050 (the “Maturity Date”), subject to mandatory prepayment from time to time on demand of Payee in an amount
equal to, at the time of such demand, (A) the cash portion of claim liabilities due and payable by the Payee under Covered Policies, amounts due and payable by the Payee arising from other liabilities allocated to the Payee, cash amounts due
and payable under loss settlements, cash amounts due and payable by the Payee for the commutation or purchase of Covered Policies or the obligations insured thereby or other liabilities, and any cash interest payment and cash principal repayment
under any surplus or contribution notes issued by the Payee in connection with any of the foregoing, provided that in each case, such amounts due and payable are in accordance with the Plan of Rehabilitation and not otherwise disapproved by the
Rehabilitator plus (B) amounts due and payable by the Payee in respect of Administrative Expenses (as defined below) plus (C) any other amounts directed or ordered to be paid by the Rehabilitator in conjunction with the
Proceeding minus (D) the amount, as calculated by Payee, of Payee’s liquid assets available to pay such claims or other obligations at such time. Principal amounts repaid under this Note may not be reborrowed. 
 As used in the above paragraph, the term “Administrative Expenses” shall include all administrative and operating
expenses of the Payee, including but not limited to, fees, costs and expenses associated with the following: 
 (i) management services, including all fees and payments pursuant to the Management Services Agreement between Maker and Payee of even date herewith. 
 (ii) financial advisor, consulting and legal services, including services for OCI or the Rehabilitator regarding matters that
relate to Ambac Financial Group, Inc. (“AFGI”) or Payee regardless of whether such matters arose prior to or arise subsequent to the establishment of Payee; 
 (iii) indemnification under commercially reasonable indemnification agreements of the Payee with providers of financial,
consulting, or legal services; and 
 (iv) amounts due, including amounts due under indemnification provisions,
under agreements executed prior to the establishment of the Payee, by AFGI or Payee for financial, consulting or legal services provided to OCI. 
 1(b) Interest. 
 The outstanding principal under this Note shall bear
interest at the rate of 4.5% per annum, computed on the basis of actual days elapsed in a 365- or 366-day year, as the case may be. Such accrued interest shall be added to the principal balance of this Note on January 1,
April 1, July 1 and October 1 of each calendar year with respect to interest accrued and unpaid 
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through the calendar quarter ending on the immediately preceding day, and, in each case, such interest added to the principal balance of this Note shall bear interest in accordance with the first
sentence of this Section 1(b). All amounts of accrued interest added to the principal balance of this Note in accordance with the immediately preceding sentence shall be deemed to no longer constitute accrued and unpaid interest
under this Note and shall be deemed to instead constitute principal of this Note. Any accrued and unpaid interest as of the date that payment in full of the principal of this Note is due (or, if earlier, the date upon which Maker pays in full the
principal of this Note) shall also be due and payable on such date. 
 1(c) Limitation on Liability of Maker. 

Notwithstanding any other provision of this Note to the contrary, Maker will have no obligation to make any payment under this Note at
any time that Maker’s surplus as regards policyholders, as reflected on its statutory financial statements (its “Surplus”), is less than $100,000,000, or such higher amount as determined by the OCI pursuant to a prescribed accounting
practice, (the “Surplus Amount”), or to the extent that such payment would result in Maker’s Surplus being less than the Surplus Amount, it being understood that any principal payment deferred as a result of the
foregoing shall, unless otherwise agreed by Payee, be due and payable (together with accrued and unpaid interest thereon at the rate provided in clause 1(b) above, accrued through but excluding the date of payment) at such time as the
payment thereof would not result in Maker’s Surplus being less than the Surplus Amount. 
 1(d) Prepayments; Application
of Payments. 
 In addition to the prepayments required pursuant to Section1(a) hereof, Maker may at its
option prepay the principal amount of this Note in whole or in part at any time without premium or penalty. Such optional prepayments shall be applied to such amounts as shall be directed by Maker. 
 2. SECURITY 
 2(a) Grant
of Security Interest. 
 For value received and as collateral security for the Secured Indebtedness (as defined below),
Maker hereby grants to Payee a security interest, lien and mortgage in and to, and agrees and acknowledges that Payee has, and shall continue to have, a security interest, lien and mortgage in and to, Maker’s right, title and interest in each
of the following assets, wherever located, however arising or created and whether now owned or existing or hereafter arising, created or acquired (collectively, the “Collateral”): 
 (i) installment premiums received in respect of the Covered Policies; 
 (ii) reinsurance premiums received in respect of assumed reinsurance agreements with respect to which the liabilities of
Maker have been allocated to the Payee; 
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 (iii) recoveries under third party reinsurance agreements in respect of the
Covered Policies; 
 (iv) any recoveries arising from remediation efforts or reimbursement or collection rights
with respect to policies allocated to the Segregated Account; 
 (v) all assets evidencing and rights relating to
any of the foregoing, whether in the form of instruments, general intangibles, investment property or otherwise; and 
 (vi) all identifiable products and proceeds of any of the property described above in any form. 
 2(b) Indebtedness
Secured. 
 The security interest granted herein is granted to secure the payment and performance of (collectively, the
“Secured Indebtedness”): 
 (i) any and all indebtedness, obligations and liabilities of
Maker to Payee arising in connection with, or evidenced by, this Note, together with all documents evidencing and/or securing such indebtedness, obligations and/or liabilities, whether now existing or hereafter arising, whether direct or indirect,
absolute or contingent, due or not due, liquidated or unliquidated, and together with all interest thereon, including all renewals, extensions and modifications of the foregoing or any part thereof; 
 (ii) any and all indebtedness, obligations and liabilities of Maker to Payee pursuant to the Reinsurance Agreement, whether
direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising under or in respect of the Reinsurance Agreement, including all renewals, extensions and modifications of the foregoing or any part thereof; and

 (iii) all costs and expenses incurred by Payee to obtain, preserve, perfect and enforce the security interest
granted hereby and all other liens and security interests securing payment of the Secured Indebtedness and to maintain, preserve and collect the Collateral, including, without limitation, taxes, assessments and reasonable attorneys’ fees and
legal expenses. 
 2(c) Collection and Enforcement of Collateral; Power of Attorney. 
 Payee shall have the right, but not the obligation, in its sole and absolute discretion, to enforce and collect any Collateral (including,
without limitation, by the commencement of legal claims or proceedings) if Maker shall not have commenced enforcement or collection efforts acceptable to Payee with respect to the applicable Collateral within ten (10) business days after the
applicable obligor’s default under the applicable Collateral. In furtherance of the foregoing, Payee may in its sole and absolute discretion, at any time after such failure to act by Maker exercise such enforcement and collection rights of
Maker in such Collateral, and Maker hereby irrevocably appoints Payee, with full power of substitution, its 
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 attorney-in-fact for such purposes with full irrevocable power and authority in the place and stead of Maker
and in the name of Maker or in its own name, from time to time in Payee’s sole and absolute discretion, to pursue and exercise such rights in respect of such Collateral. Maker hereby confirms and ratifies all that Payee shall lawfully do or
cause to be done by virtue of this Section. This power of attorney is a power coupled with an interest and shall be irrevocable. Payee shall not be liable for any act or omission on the part of Payee, its officers, agents or other representatives in
connection with exercising the rights granted hereunder. Maker hereby acknowledges and agrees that Payee shall have no fiduciary duties to Maker and Maker hereby waives any claims to the rights of a beneficiary or a fiduciary relationship hereunder.
The powers conferred on Payee hereunder are solely to protect the interests of Payee in Collateral and shall not impose any duty upon Payee to exercise any such powers. Notwithstanding the foregoing, any proceeds from Payee’s exercise of the
enforcement and collection rights of Maker pursuant to this paragraph shall remain the property of Maker, shall be held in trust for the benefit of Maker, and shall be turned over to Maker promptly. 
 2(d) Collateral Documentation. 
 Maker agrees to execute and deliver such agreements, instruments and other documents, and take such actions, as are necessary and/or reasonably requested by Payee to protect, perfect and maintain the
perfection of Payee’s security interest in the Collateral, and hereby authorizes Payee to file any Uniform Commercial Code financing statement or other document in furtherance thereof. Without in any way limiting the right, power or authority
of Payee under the Uniform Commercial Code or other Applicable Law (as defined below), Maker hereby irrevocably authorizes Payee in its sole and absolute discretion, at any time and from time to time, to file without the review or approval of Maker
any and all financing statements, modifications and continuations in respect of the Collateral and Maker and/or the transactions contemplated by this Note and/or any related agreement, instrument or other document to which Maker is or will be a
party, by which it is or will be bound or to which any of its property is or will be subject (collectively, with this Note and the Reinsurance Agreement, the “Transaction Documents”) in such jurisdictions as Payee deems
necessary or desirable. 
 2(e) Remedies. 
 In addition to the rights and remedies provided under this Note and/or any other Transaction Document, Payee shall have all of the rights and remedies of a secured party under the Uniform Commercial Code
with respect to the Collateral. 
 3. REPRESENTATIONS AND WARRANTIES 
 Maker hereby represents and warrants to Payee as follows: 
 3(a) Organization, Powers, etc. 
 Maker: (i) is duly organized,
validly existing and in good standing under the laws of its jurisdiction of organization; (ii) has the power and authority to carry on its business as now conducted; (iii) is duly qualified, licensed or registered to transact its business
in every 
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 jurisdiction where such qualification, licensure or registration is necessary; and (iv) has the power
and authority to execute and deliver this Note and each other Transaction Document and to perform all of its obligations hereunder and thereunder. 
 3(b) Authorization, Conflicts and Validity. 
 The execution and delivery by
Maker of this Note and each of the other Transaction Documents and the performance by Maker of all of its obligations hereunder and thereunder: (i) have been duly authorized by all requisite entity action; (ii) will not in any material
respect violate or be in conflict with any term or provision of (A) any applicable law, including, without limitation, any applicable: (1) federal, state, territorial, county, municipal or other governmental or quasi-governmental law,
statute, ordinance, rule, regulation, requirement or restriction; or (2) judicial, administrative, regulatory or other governmental, quasi-governmental or regulatory order, injunction, writ, judgment, decree or ruling binding upon Maker; in
each case (x) whether domestic or foreign or (y) whether at law, in equity, in rem or otherwise (collectively, “Applicable Law”) or (B) any of Maker’s organizational documents; and (iii) except as
specifically contemplated by this Note or any other Transaction Document, will not result in the creation or imposition of any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge or other
security interest or other security agreement or preferential arrangement of any kind or nature whatsoever (each, a “Lien”) upon any of its assets and properties other than: (a) Liens for taxes, assessments and
governmental charges or levies which are not delinquent for more than ninety (90) days or remain payable without penalty; or (b) Liens imposed by law, such as materialmen’s, mechanics’, carriers’, workmens’ and
repairmen’s Liens and other similar Liens arising in the ordinary course of business securing obligations that are not overdue for a period of more than sixty (60) days; or (c) pledges or deposits to secure obligations under
workers’ compensation laws or similar legislation or to secure public or statutory obligations. 
 3(c) Consents,
etc. 
 Except as already obtained and in effect, no consent, approval or authorization of, or registration, declaration or
filing with, any governmental or regulatory authority or other person is required as a condition to or in connection with the due and valid execution, delivery and performance by Maker of this Note or any other Transaction Document or the legality,
validity, binding effect or enforceability of any of their respective representations, warranties, covenants and other terms and provisions. 
 3(d) Legal and Enforceable Agreements. 
 This Note is, and each of the
other Transaction Documents when executed and delivered will be, legal, valid and binding obligations of Maker, enforceable in accordance with their respective terms and provisions. 
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 3(e) Document Delivery; Absence of Defaults and Certain Agreements. 
 Except as disclosed in writing to Payee prior to the date hereof, no act or event has occurred and is continuing that violates, is in
conflict with, results in a breach of or constitutes a default (with or without the giving of notice or the passage of time or both) under any term or provision of (A) this Note and/or any other Transaction Document, (B) any agreement,
contract or instrument to which Maker is a party, by which Maker is bound or to which any substantial portion of Maker’s property is subject, in each case the loss of which would have a material adverse effect on Maker (each a
“Material Agreement”), or (C) any of Maker’s organizational documents. 
 3(f) Compliance
with Applicable Law. 
 Maker is in compliance in all material respects with and conforms in all material respects to all
Applicable Law, the failure to comply with which would have a material adverse effect on Maker. 
 3(g) Assets and
Collateral. 
 Maker is the holder and legal and beneficial owner of, and has good title to, the Collateral. Maker has full
power and authority and the unconditional right to grant to Payee the security interests respecting the Collateral contemplated by this Note and/or the other Transaction Documents. Payee has received legal, valid, binding, enforceable and perfected
security interests in and to the Collateral pursuant to this Note and the other Transaction Documents. No part of the Collateral is subject to any Lien or any adverse claim of any kind whatsoever, except those in favor of Payee. 
 4. AFFIRMATIVE COVENANTS 
 Maker hereby covenants and agrees with Payee as follows at all times until the indefeasible payment in full of all of the Secured Indebtedness: 
 4(a) Required Notices. 
 Maker will give, or cause to be given, prompt
written notice to Payee of: 
 (i) any change in the name or the jurisdiction of organization of Maker;

 (ii) receipt of actual knowledge of the institution or threat of, or any adverse determination in, any action,
suit, investigation or proceeding at law, in equity, in arbitration or by or before any other authority involving or affecting Maker which Maker reasonably believes, if adversely determined, is reasonably likely to have a material and adverse effect
upon Maker’s ability to (A) make payment as and when due of all or any material part of its obligations hereunder, (B) perform in any material respect its obligations under any Material Agreement and/or (C) perform in any
material respect any of the transactions contemplated by this Note and/or any of the other Transaction Documents (a “Material Adverse Effect”); 
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 (iii) receipt of actual knowledge of the occurrence of any act or event that
violates, is in conflict with, results in a breach in any material respect of, or constitutes a material default (with or without the giving of notice or the passage of time or both) under, any of Maker’s organizational documents or any
Material Agreement; 
 (iv) receipt of actual knowledge of any attachment, confiscation, detention, levy,
requisition, seizure or other taking of any material part of the Collateral, whether through process of law or otherwise, or the filing or other imposition of any Lien against any part of the Collateral (other than any Lien of Payee); or 

(v) receipt of actual knowledge of the occurrence of any act or event that Maker reasonably believes has had or is
reasonably likely to have a Material Adverse Effect. 
 4(b) Accounts and Reports. 
 Maker shall provide to Payee the following: 
 (i) promptly following execution, copies of all loan, security and other instruments, agreements and documents respecting indebtedness for borrowed money of Maker in excess of $5,000,000, including
commitments, lines of credit and other credit availabilities, and of all guarantees by Maker respecting any indebtedness or other obligation of any other person in excess of $5,000,000, except those to which Payee also is a party; 
 (ii) as soon as available, notice of any acceleration and/or foreclosure of any part of its assets and properties as a result
of any default under indebtedness for borrowed money of Maker or any of its subsidiaries in excess of $5,000,000; 
 (iii) as soon as available, and in any event not more than ten (10) business days after actual receipt, a copy of any summons or complaint, or any other notice of any action, suit, investigation or proceeding, involving or affecting
Maker or any of its subsidiaries where the damages sought exceed, or if unspecified are reasonably likely to exceed, $5,000,000; and 
 (iv) as soon as available, and in any event not less than five (5) business days prior to adoption, copies of each proposed modification, waiver, amendment or termination of any of the terms and
provisions of any of the organizational documents of Maker; 
 together with such supplements to the aforementioned documents and additional
accounts, reports, certificates, statements, documents and information as Payee from time to time may reasonably request, each in such form and substance as may be reasonably acceptable to Payee. 
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 4(c) Access to Premises, Records and Collateral. 
 At all reasonable times and upon reasonable notice and as often as Payee reasonably may request, Maker shall permit representatives
designated by Payee to (i) have complete and unrestricted access to the premises of Maker, the books and records of Maker and the Collateral, (ii) make copies of, or excerpts from, those books and records and (iii) discuss the
Collateral or the accounts, assets, business, operations, properties or condition, financial or otherwise, of Maker with its officers, directors, employees, accountants, attorneys and agents. Payee shall treat as “confidential information”
any information or documents provided by Maker to, or obtained by, Payee, pursuant to this paragraph. Payee agrees not to disclose or allow disclosure of confidential information to any person provided that Payee may make such disclosure (i) to
its officers, employees, staff members, auditors, attorneys and other professional advisors (collectively, “Representatives”), in each case only to the extent such persons need to know the information so disclosed, and
provided that such party shall have informed each such Representative of the confidential nature of such information; (ii) to the extent required by applicable law, rule or regulation; (iii) in connection with any action to enforce this
Note or any provision of this Note or in connection with any proceeding, including steps leading to a potential proceeding, that might involve this Note or any provision of this Note, and (iv) to the extent such information shall be in the
public domain without breach by any party of its obligation hereunder. 
 4(d) Existence, Powers, etc. 
 (i) Maker shall do, or cause to be done, all things that may be necessary (A) to maintain its due organization, valid
existence and good standing under the laws of its jurisdiction of incorporation, and (B) to preserve and keep in full force and effect all qualifications, licenses and registrations in those jurisdictions in which the failure to do would have a
Material Adverse Effect. 
 (ii) Maker shall not cause, suffer to exist or permit any supplement, modification or
amendment to, or any waiver of any term or provision of, any of its organizational documents which would have a Material Adverse Effect. 
 (iii) Maker shall not, and shall not cause, without Payee’s prior written consent, any action (with respect to itself or otherwise), or offer, commit or enter into any agreement or arrangement, that
would in any material respect restrict, limit, make subject to third-party approval or otherwise impair its right, power or authority (A) to carry on its business in all material respects as now conducted or (B) to execute or deliver this
Note or any other Transaction Document or any supplement, modification or amendment thereto or restatement or replacement thereof from time to time or (C) to perform any of its obligations hereunder or thereunder. 
 4(e) Compliance with Applicable Law. 
 Maker shall comply with any and all Applicable Law now or hereafter in effect in all material respects to the extent the failure to so comply shall have a Material Adverse Effect. 
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 4(f) Preservation and Defense of Collateral, etc. 
 Maker shall maintain, enforce, preserve and defend on a timely basis all of the right, title and interest of Maker and Payee in and to the
Collateral. 
 5. NEGATIVE COVENANTS 
 Maker hereby covenants and agrees with Payee as follows at all times until the indefeasible payment in full of all of the Secured Indebtedness: 
 5(a) Investments. 
 Maker shall not, directly or indirectly through one or more subsidiaries, make any investments that do not comply with Maker’s investment guidelines and policies in effect from time to time (the “Investments
Policy”), and shall not amend, restate, revise, supplement or otherwise modify the Investments Policy in any manner that would have a Material Adverse Effect without Payee’s prior written consent, such consent not to be
unreasonably withheld or delayed. 
 5(b) Distributions to Shareholders. 
 Maker shall not directly or indirectly, without Rehabilitator and OCI approval: 
 (i) declare or make any dividend, payment or other distribution of cash, assets or property with respect to any equity
securities issued by Maker, whether now or hereafter outstanding; 
 (ii) redeem, purchase or otherwise acquire
any securities issued by Maker or any option or other right to acquire any such securities; 
 (iii) covenant or
otherwise arrange with any person (other than Payee) to directly or indirectly limit or otherwise restrict any dividend, advance or other payment or distribution (whether of cash or otherwise) to or for the benefit of Maker; or 
 (iv) offer, commit or agree to do any of the foregoing. 
 5(c) Transaction Limitations. 
 Maker shall not, without Payee’s prior written consent (such consent not to be unreasonably withheld or delayed), directly or indirectly, enter into any transaction with, or use any asset or property
of, any third party (including any affiliate, but excluding Payee), other than pursuant to the reasonable requirements of the business of Maker and which Maker reasonably believes are fair and reasonable terms and provisions. For the avoidance of
doubt, “transaction” as used in this Section shall include, without limitation: 
 (i) the creation,
incurrence, assumption, increase, renewal or extension of any indebtedness for borrowed money, however evidenced; 
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 (ii) the creation, incurrence or assumption of any Lien of any nature in, to
or against any asset or property; 
 (iii) the sale, transfer, exchange, abandonment or other disposition of any
asset or property; 
 (iv) the purchase or acquisition of any equity interest, including any membership interest
in a limit liability company or partnership interest in a private company; 
 (v) any issuance, sale, transfer,
pledge or other disposition or encumbrance of any capital stock, partnership or membership interests or other equity interests issued by Maker or any of its subsidiaries, or the issuance of any option, warrant or other right to acquire any such
securities; 
 (vi) any capital reorganization or reclassification of the capital stock, partnership or
membership interests or other equity interests issued by Maker or any of its subsidiaries; 
 (vii) any
transaction in which the capital stock, partnership or membership interests or other equity interests issued by Maker or any of its subsidiaries prior to the transaction would be changed into or exchanged for different securities, whether of that or
any other person, or for any other assets or properties; 
 (viii) any sale, lease, assignment, conveyance,
spin-off or other transfer or disposition of all or any material part of the business or assets and properties of Maker or any of its subsidiaries; 
 (ix) any merger, consolidation, dissolution, liquidation or winding up of Maker or any of its subsidiaries; 
 (x) the acquisition or establishment of any new subsidiary or joint venture by Maker or any of its subsidiaries; and 
 (xi) the acquisition by Maker or any of its subsidiaries of all or substantially all of the assets and properties of any
other person or any discrete division or other business unit thereof. 
 6. REMEDIES 
 The occurrence and continuation of any of the following shall constitute an “Event of Default” under this Note:

 (a) Maker shall fail to pay any principal of this Note when the same shall be due and payable or, within five
(5) business days after when due and payable, any other amount due and payable hereunder or under any other Transaction Document; 
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 (b) Any representation or warranty made by Maker herein or in any other
Transaction Document or which is contained in any certificate furnished by Maker at any time under or in connection with this Note shall prove to have been incorrect in any material respect when made or deemed made; or 
 (c) Maker shall fail to perform or observe any term, covenant or agreement contained in Section 5 of this Note on
its part to be performed or observed; or Maker shall fail to perform or observe any other term, covenant or agreement contained in this Note or the Reinsurance Agreement on its part to be performed or observed if such failure shall remain unremedied
for forty-five days after written notice thereof shall have been received by Maker and, in each case, such failure to perform or observe as contemplated in this subparagraph (c) shall have a Material Adverse Effect. 
 At any time after an Event of Default shall have occurred and be continuing, Payee shall be entitled to: (i) declare all principal,
interest and other amounts outstanding hereunder to be immediately due and payable, and (ii) exercise or enforce any one or more of Payee’s rights, powers, privileges, remedies and interests under this Note and/or the other Transaction
Documents and Applicable Law (including, without limitation, with respect to the Collateral). 
 Notwithstanding anything herein
to the contrary, no action taken or proposed to be taken under, in connection with or pursuant to the Plan of Operation or Plan of Rehabilitation shall be deemed to be an Event of Default. 
 7. WAIVERS 
 Except as
herein provided, Maker (a) forever waives presentment, protest and demand, notice of protest, demand and dishonor and non-payment of this Note, and all other notices in connection with the delivery, acceptance, performance, default or
enforcement of the payment of this Note; and (b) agrees that time is of the essence with respect to the payment of the obligations hereunder, provided that the time of payment of the obligations hereunder or any part thereof may be extended
from time to time without modifying or releasing the liability of Maker, the right of recourse against Maker being hereby reserved by Payee. It is expressly agreed by Maker that no extensions of time for the payment of this Note, nor the failure on
the part of Payee to exercise any of its rights hereunder, shall operate to release, discharge, modify, change or affect the original liability under this Note, either in whole or in part. 
 8. NO WAIVER OF IMMUNITY 
 Nothing in this Note may be construed as waiving immunity, or as subjecting the Rehabilitator or OCI, or the Rehabilitator’s or OCI’s employees or agents, to liability, including contractual liability, for matters that are
otherwise subject to immunity from liability, including immunity under Wis. Stat. § 645.08(2). 
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 9. GOVERNING LAW; SEVERABILITY 
 Maker agrees that this instrument and the rights and obligations of all parties hereunder shall be governed by and construed under the
internal laws of the State of Wisconsin (without giving effect to conflict of law principles that provide for the application of the laws of another jurisdiction). If any provision of this Note shall be illegal or unenforceable, such provision shall
be deemed canceled to the same extent as though it had never appeared herein, but the remaining provisions shall not be affected thereby. 
 10. NOTICES 
 All notices, requests and demands to or upon the respective parties hereto to be effective shall
be in writing (including by facsimile or e-mail), and shall be deemed to have been duly given or made when received, addressed as follows (or to such other address, facsimile number or e-mail address) as the applicable party may specify to the other
in accordance with this Section from time to time): 
 With respect to Maker: 
 Ambac Assurance Corporation 
 One State Street Plaza 
 New York, New York 10004 
 Attention: General Counsel 
 With respect to Payee: 
 Rehabilitator of the Segregated Account of Ambac Assurance Corporation 
 One State Street Plaza 
 New York, New York 10004 
 with copies to: 
 Commissioner of Insurance 
 Wisconsin Office of the Commissioner of Insurance 
 125 South Webster Street 
 Madison, Wisconsin 53703 
 Foley & Lardner LLP 
 777 E. Wisconsin Ave 
 Milwaukee, Wisconsin 53202 
 Attn: Kevin G. Fitzgerald 
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 11. SUCCESSORS AND ASSIGNS 
 Neither Maker nor Payee shall assign any of its rights or obligations under this Note, and any such assignment (without the other
party’s prior written consent) shall be null and void. No party shall be a third party beneficiary of this Note. 
 12. WAIVER OF JURY
TRIAL 
 MAKER AND PAYEE HEREBY JOINTLY AND SEVERALLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING
RELATING TO THIS INSTRUMENT, THE OBLIGATIONS HEREUNDER, ANY COLLATERAL SECURING THE OBLIGATIONS HEREUNDER OR ANY TRANSACTION ARISING HEREFROM OR CONNECTED HERETO. EACH OF MAKER AND PAYEE REPRESENTS TO THE OTHER THAT THIS WAIVER IS KNOWINGLY,
WILLINGLY AND VOLUNTARILY GIVEN. 
 13. LIMITATION OF LIABILITY 
 Maker hereby waives any right it may now or hereafter have to claim or recover from Payee any consequential, exemplary or punitive damages.

 14. EXPENSES; INDEMNITY 
 Maker shall pay or reimburse Payee for (i) all reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) paid or incurred by Payee in connection with
the negotiation, preparation, execution, delivery, administration and enforcement of this Note, each other Transaction Document and any other document required hereunder or thereunder, including, without limitation, any amendment, supplement,
modification or waiver of or to any of the foregoing and (ii) all reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) paid or incurred by Payee before and after judgment in enforcing,
protecting or preserving its rights under this Note, each other Transaction Document and any other document required hereunder or thereunder, including, without limitation, the enforcement of rights against, or realization on, any collateral or
security therefor or in defending against any claim made against Payee by Maker or any third party as a result of or in any way relating to any matter referred to above in this Section. The foregoing agreements and indemnities shall remain operative
and in full force and effect regardless of termination of this Note and/or any other Transaction Document, the consummation of or failure to consummate either the transactions contemplated by this Note and/or any other Transaction Document or any
amendment, supplement, modification or waiver, the repayment of any loan made hereunder, the invalidity or unenforceability of any term or provision of this Note or any other Transaction Document or any other document required hereunder or
thereunder, any investigation made by or on behalf of Payee or the content or accuracy of any representation or warranty made under this Note, any other Transaction Document or any other document required hereunder or thereunder. 
 Ambac Assurance Corporation 
 Secured Note Payable to Segregated Account 
  

 14 

 15. CONSENT TO JURISDICTION 
 Maker hereby consents to the jurisdiction of the state court in Wisconsin before which the rehabilitation proceedings with respect to the
Payee are pending, and waives any objection based on lack of personal jurisdiction, improper venue or forum non conveniens, with regard to any actions, claims, disputes or proceedings relating to this Note, the Transaction Documents, or any other
document delivered hereunder or in connection herewith, or any transaction arising from or connected to any of the foregoing. 
 16. FURTHER
ASSURANCES 
 Maker agrees to do such further acts and things and to execute and deliver such statements, assignments,
agreements, instruments and other documents as Payee from time to time may reasonably request in connection with the administration, maintenance, enforcement or adjudication of this Note and the other Transaction Documents, including, without
limitation, in order to (a) evidence, confirm, perfect or protect any security interest or other Lien granted or required to have been granted under this Note and the other Transaction Documents, (b) give Payee or its designee confirmation
and assurance of Payee’s rights, powers, privileges, remedies and interests under this Note and the other Transaction Documents or (c) otherwise effectuate the purpose and the terms and provisions of this Note and the other Transaction
Documents, each in such form and substance as may be reasonably acceptable to Payee. 
 17. ENTIRE AGREEMENT 
 This Note and the other documents referred to herein contain the entire agreement between Maker and Payee with respect to the subject matter
hereof, superseding all previous communications and negotiations, and no representation, undertaking, promise or condition concerning the subject matter hereof shall be binding upon Payee unless clearly expressed in this Note or in the other
documents referred to herein. 
 18. MODIFICATION, AMENDMENT, ETC. 
 Each and every supplement or amendment to or modification or restatement of this Note or any other Transaction Document shall be in writing
and signed by all of the parties hereto or the respective parties thereto, as the case may be, and each and every waiver of, or consent to any departure from, any representation, warranty, covenant or other term or provision of this Note or any
other Transaction Document shall be in writing and signed by each of the parties hereto or thereto, respectively. 
 19. SETOFF

 In addition to any rights and remedies of Payee provided hereunder and/or by Applicable Law, Payee shall have the right,
without prior notice to Maker, any such notice being expressly waived by Maker to the extent permitted by Applicable Law, upon any amount becoming due and payable by Maker hereunder (whether at the stated maturity, by acceleration or otherwise), to
set off and appropriate and apply against such amount any and all deposits and any other credits, indebtedness or claims, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by Payee to or
for the credit or the account of Maker. 
 [Signature Page Follows] 
 Ambac Assurance Corporation 
 Secured Note Payable to Segregated
Account 
  

 15 

 IN WITNESS WHEREOF, the undersigned have signed below as of the date first set forth above.

  

			
	AMBAC ASSURANCE CORPORATION (“Maker”)
		
	By:	 	/s/ Kevin J. Doyle
		 	Name: Kevin J. Doyle
		 	Title: Senior Vice President
	
	SEGREGATED ACCOUNT OF AMBAC ASSURANCE CORPORATION (“Payee”)
		
	By:	 	 /s/ Kevin J. Doyle

		 	Name: Kevin J. Doyle
		 	Title: Senior Vice President
		 	
		 	

 Ambac Assurance Corporation 
 Secured Note Payable to Segregated AccountSchlumberger 2010 Stock Incentive Plan

 Exhibit 10.1 
 SCHLUMBERGER 
 2010
OMNIBUS STOCK INCENTIVE PLAN 
 1. Objectives.  This 2010 Schlumberger Omnibus Stock Incentive Plan (this
“Plan”) was adopted by Schlumberger Limited (the “Company”) in order to retain employees with a high degree of training, experience and ability, to attract new employees whose services are considered particularly valuable, to
encourage the sense of proprietorship of such persons and to promote the active interest of such persons in the development and financial success of the Company and its Subsidiaries. These objectives are to be accomplished by making Awards under
this Plan and thereby providing Participants with a proprietary interest in the growth and performance of the Company and its Subsidiaries. 
 2. Definitions.  As used herein, the terms set forth below shall have the following respective meanings: 
 “Award” means the grant of any Option, Stock Appreciation Right, Stock Award, Cash Award or Performance Award, whether granted singly, in combination or in tandem, to a Participant pursuant to
such applicable terms, conditions and limitations as the Committee may establish in accordance with the objectives of this Plan. 
 “Award Agreement” means the document (in written or electronic form) communicating the terms, conditions and limitations applicable of an Award. The Committee may, in its discretion, require that the Participant execute such Award
Agreement, or may provide for procedures through which Award Agreements are made available but not executed. Any Participant who is granted an Award and who does not affirmatively reject the applicable Award Agreement shall be deemed to have
accepted the terms of Award as embodied in the Award Agreement. 
 “Board” means the board of directors of the
Company. 
 “Cash Award” means an Award denominated in cash. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
 “Committee” means the Compensation Committee of the Board, and any successor committee thereto or such other committee of the
Board as may be designated by the Board to administer this Plan in whole or in part including any subcommittee of the Board as designated by the Board. 
 “Common Stock” means the Common Stock, par value $0.01 per share, of the Company. 
 “Dividend Equivalents” means, with respect to shares of Restricted Stock or Restricted Stock Units, with respect to which shares are to be issued at the end of the Restriction Period, an amount
equal to all dividends and other distributions (or the economic equivalent thereof) that are payable to shareholders of record during the Restriction Period on a like number of shares of Common Stock. 
 “Employee” means an employee of the Company or any of its Subsidiaries and an individual who has agreed to become an employee of
the Company or any of its Subsidiaries and actually becomes such an employee within the following six months. 
 “Executive
Officer” means a “covered employee” within the meaning of Section 162(m)(3) or any other executive officer designated by the Committee for purposes of exempting compensation payable under this Plan from the deduction limitations
of Section 162(m). 
 “Fair Market Value” means, with respect to a share of Common Stock on a particular date,
the mean between the highest and lowest composite sales price per share of the Common Stock, as reported on the consolidated transaction reporting system for the New York Stock Exchange for that date, or, if there shall have been no such reported
prices for that date, the reported mean price on the last preceding date on which a composite sale or sales were effected on one or more of the exchanges on which the shares of Common Stock were traded shall be the Fair Market Value. 
  

 1 

 “Incentive Option” means an Option that is intended to comply with the
requirements set forth in Section 422 of the Code. 
 “Non-Qualified Option” means an Option that is not intended
to comply with the requirements set forth in Section 422 of the Code. 
 “Option” means a right to purchase a
specified number of shares of Common Stock at a specified price. 
 “Participant” means an Employee to whom an Award
has been made under this Plan. 
 “Performance Award” means an award made pursuant to this Plan to a Participant,
which Award is subject to the attainment of one or more Performance Goals. 
 “Performance Goal” means a standard
established by the Committee, to determine in whole or in part whether a Performance Award shall be earned. 
 “Restricted
Stock” means any Common Stock that is restricted or subject to forfeiture provisions. 
 “Restricted Stock Unit”
means a unit evidencing the right to receive one share of Common Stock or equivalent value (as determined by the Committee) that is restricted or subject to forfeiture provisions. 
 “Restriction Period” means a period of time beginning as of the date upon which an Award of Restricted Stock or Restricted Stock
Units is made pursuant to this Plan and ending as of the date upon which the Common Stock subject to such Award is issued (if not previously issued) no longer restricted or subject to forfeiture provisions. 
 “Section 162(m)” means Section 162(m) of the Code and any Treasury Regulations and guidance promulgated thereunder.

 “Section 409A” means Section 409A of the Code and any Treasury Regulations and guidance promulgated
thereunder. 
 “Stock Appreciation Right” or “SAR” means a right to receive a payment, in cash or Common
Stock, equal to the excess of the Fair Market Value or other specified valuation of a specified number of shares of Common Stock on the date the right is exercised over a specified strike price, in each case, as determined by the Committee.

 “Stock Award” means an award in the form of shares of Common Stock or units denominated in shares of Common Stock.

 “Subsidiary” means (i) in the case of a corporation, a “subsidiary corporation” of the Company as
defined in Section 424(f) of the Code and (ii) in the case of a partnership or other business entity not organized as a corporation, any such business entity of which the Company directly or indirectly owns 50% or more of the voting,
capital or profits interests (whether in the form of partnership interests, membership interests or otherwise). 
 3.
Eligibility.  All Employees of the Company or a Subsidiary are eligible for Awards under this Plan in the sole discretion of the Committee. No director of the Company who is not also an employee is eligible to participate in the
Plan, nor is any employee who owns directly or indirectly stock possessing more than five percent (5%) of the total combined voting power or value of all classes of stock of the Company or any Subsidiary. 
 4. Common Stock Available for Awards.  Subject to the provisions of paragraph 13 hereof, there shall be available for
Awards under this Plan granted wholly or partly in Common Stock (including rights or options that may be exercised for or settled in Common Stock) an aggregate of 30 million shares of Common Stock. No more than 3 million shares of Common
Stock may be the subject of Awards that are not Options or Stock Appreciation Rights. In the sole discretion of the Committee, 30 million shares of Common Stock may be granted as Incentive Options. 
  

 2 

 (a) In connection with the granting of an Option or other Award, the number of shares of
Common Stock available for issuance under this Plan shall be reduced by the number of shares of Common Stock in respect of which the Option or Award is granted or denominated. For example, upon the grant of stock-settled SARs, the number of shares
of Common Stock available for issuance under this Plan shall be reduced by the full number of SARs granted, and the number of shares of Common Stock available for issuance under this Plan shall not thereafter be increased upon the exercise of the
SARs and settlement in shares of Common Stock, even if the actual number of shares of Common Stock delivered in settlement of the SARs is less than the full number of SARs exercised. However, Awards that by their terms do not permit settlement in
shares of Common Stock shall not reduce the number of shares of Common Stock available for issuance under this Plan. 
 (b) Any
shares of Common Stock that are tendered by a Participant or withheld as full or partial payment of withholding or other taxes or as payment for the exercise or conversion price of an Award under this Plan shall not be added back to the number of
shares of Common Stock available for issuance under this Plan. 
 (c) Whenever any outstanding Option or other Award (or portion
thereof) expires, is cancelled or forfeited or is otherwise terminated for any reason without having been exercised or payment having been made in the form of shares of Common Stock, the number of shares of Common Stock available for issuance under
this Plan shall be increased by the number of shares of Common Stock allocable to the expired, forfeited, cancelled or otherwise terminated Option or other Award (or portion thereof). To the extent that any Award is forfeited, or any Option or SAR
terminates, expires or lapses without being exercised, the shares of Common Stock subject to such Awards will not be counted as shares delivered under this Plan. 
 (d) Shares of Common Stock delivered under the Plan in settlement of an Award issued or made (i) upon the assumption, substitution, conversion or replacement of outstanding awards under a plan or
arrangement of an acquired entity or (ii) as a post-transaction grant under such a plan or arrangement of an acquired entity shall not reduce or be counted against the maximum number of shares of Common Stock available for delivery under the
Plan, to the extent that the exemption for transactions in connection with mergers and acquisitions from the shareholder approval requirements of the New York Stock Exchange for equity compensation plans applies. 
 (e) Awards valued by reference to Common Stock that may be settled in equivalent cash value will count as shares of Common Stock delivered
to the same extent as if the Award were settled in shares of Common Stock. 
 Consistent with the requirements specified above
in this paragraph 4, the Committee may from time to time adopt and observe such procedures concerning the counting of shares against this Plan maximum as it may deem appropriate, including rules more restrictive than those set forth above to the
extent necessary to satisfy the requirements of any national securities exchange on which the Common Stock is listed or any applicable regulatory requirement. The Committee and the appropriate officers of the Company shall be authorized to, from
time to time, take all such actions as any of them may determine are necessary or appropriate to file any documents with governmental authorities, stock exchanges and transaction reporting systems as may be required to ensure that shares of Common
Stock are available for issuance pursuant to Awards. 
 5. Administration. 
 (a) Authority of the Committee.  This Plan shall be administered by the Committee, which shall have the powers vested in it
by the terms of this Plan, such powers to include the authority (within the limitations described in this Plan): 
  

	 	•	 	 to select the Employees to be granted Awards under this Plan; 

  

	 	•	 	 to determine the terms of Awards to be made to each Participant; 

  

	 	•	 	 to determine the time when Awards are to be granted and any conditions that must be satisfied before an Award is granted; 

 

	 	•	 	 to establish objectives and conditions for earning Awards; 

  

 3 

	 	•	 	 to determine the terms and conditions of Award Agreements (which shall not be inconsistent with this Plan) and which parties must sign each Award
Agreement; 

  

	 	•	 	 to determine whether the conditions for earning an Award have been met and whether a Performance Award will be paid at the end of an applicable
performance period; 

  

	 	•	 	 except as otherwise provided in paragraphs 7(a) and 11, to modify the terms of Awards made under this Plan; 

  

	 	•	 	 to determine if, when and under what conditions payment of all or any part of an Award may be deferred; 

  

	 	•	 	 to determine whether the amount or payment of an Award should be reduced or eliminated; 

  

	 	•	 	 to determine the guidelines and/or procedures for the payment or exercise of Awards; and 

  

	 	•	 	 to determine whether a Performance Award should qualify, regardless of its amount, as deductible in its entirety for federal income tax purposes,
including whether a Performance Award granted to an Executive Officer should qualify as performance-based compensation. 

 The Committee may correct any defect or supply any omission or reconcile any inconsistency in this Plan or in any Award in the manner and to the extent the Committee deems necessary or desirable to
further Plan purposes. Any decision of the Committee in the interpretation and administration of this Plan shall lie within its sole discretion and shall be final, conclusive and binding on all parties concerned. All decisions and selections made by
the Committee pursuant to the provisions of the Plan shall be made by a majority of its members unless subject to the Committee’s delegation of authority pursuant to paragraph 6 herein. 
 (b) Limitation of Liability.  No member of the Committee or officer of the Company to whom the Committee has delegated
authority in accordance with the provisions of paragraph 6 of this Plan shall be liable for anything done or omitted to be done by him or her, by any member of the Committee or by any officer of the Company in connection with the performance of any
duties under this Plan, except for his or her own willful misconduct or as expressly provided by statute. 
 (c) Prohibition
on Repricing of Awards.  No Option or SAR may be repriced, replaced, regranted through cancellation or modified without shareholder approval (except in connection with a change in the Company’s capitalization), if the effect would
be to reduce the exercise price for the shares underlying such Option or SAR. 
 6. Delegation of
Authority.  Except with respect to matters related to Awards to Executive Officers or other Awards intended to qualify as qualified performance-based compensation under Section 162(m), the Committee may delegate to the Chief
Executive Officer and to other senior officers of the Company or to such other committee of the Board its duties under this Plan pursuant to such conditions or limitations as the Committee may establish. 
 7. Awards. 
 (a) The Committee shall determine the type or types of Awards to be made under this Plan and shall designate from time to time the Participants who are to be the recipients of such Awards. Each Award shall be embodied in an Award Agreement,
which shall contain such terms, conditions and limitations as shall be determined by the Committee in its sole discretion. Awards may consist of those listed in this paragraph 7(a) and may be granted singly, in combination or in tandem. Awards may
also be made in combination or in tandem with, in replacement of, or as alternatives to, grants or rights under this Plan or any other plan of the Company or any of its Subsidiaries, including the plan of any acquired entity; provided that, except
as contemplated in paragraph 13 hereof, no Option may be issued in exchange for the cancellation of an Option with a higher exercise price nor may the exercise price of any Option be reduced. No Option may include provisions that “reload”
the option upon exercise or that extend the term of an Option beyond what is the maximum period is specified in the Plan and/or Award Agreement. All or part of an Award may be subject to conditions established by the Committee, which may include,
but are not limited to, continuous service with the Company and its Subsidiaries, achievement of specific Performance Goals. Upon the termination of employment by a Participant, any unexercised, deferred, unvested or unpaid Awards shall be treated
as set forth in the applicable Award Agreement. Subject to the provisions below applicable to each type of Award, the terms, conditions and limitations applicable to any Awards shall be determined by the Committee. 
  

 4 

 (i) Option.  An Award may be in the form of an Option. An Option awarded
pursuant to this Plan may consist of an Incentive Option or a Non-Qualified Option and will be designated accordingly at the time of grant. The price at which shares of Common Stock may be purchased upon the exercise of an Option shall be not less
than the Fair Market Value of the Common Stock on the date of grant. The term of an Option shall not exceed ten years from the date of grant. 
 (ii) Stock Appreciation Right.  An Award may be in the form of a Stock Appreciation Right. The strike price for a Stock Appreciation Right shall not be less than the Fair Market Value of
the Common Stock on the date on which the Stock Appreciation Right is granted. The term of a Stock Appreciation Right shall not exceed ten years from the date of grant. 
 (iii) Stock Award.  An Award may be in the form of a Stock Award. Any Stock Award which is not a Performance Award shall have a minimum Restriction Period of three years from the date of
grant, provided that (i) the Committee may provide for earlier vesting following a change of control or other specified events involving the Company or upon an Employee’s termination of employment by reason of death, disability or
retirement, and (ii) vesting of a Stock Award may occur incrementally over the three-year minimum Restricted Period; provided, that up to 1.5 million shares of Common Stock shall be available for issuance as Stock Awards having a
time-based Restriction Period of up to three years but not less than one year. 
 (iv) Cash Awards.  An Award
may be in the form of a Cash Award. 
 (v) Performance Award.  Without limiting the type or number of Awards
that may be made under the other provisions of this Plan, an Award may be in the form of a Performance Award. Any Stock Award which is a Performance Award shall have a minimum Restriction Period of one year from the date of grant, provided that the
Committee may provide for earlier vesting following a change of control or other specified events involving the Company, or upon a termination of employment by reason of death, disability or retirement, or termination of service subject to the
limitations specified below. The Committee shall set Performance Goals in its sole discretion which, depending on the extent to which they are met, will determine the value and/or amount of Performance Awards that will be paid out to the Participant
and/or the portion of an Award that may be exercised. 
 (A) Non-Qualified Performance Awards.  Performance
Awards granted to Employees that are not intended to qualify as qualified performance-based compensation under Section 162(m) shall be based on achievement of such Performance Goals and be subject to such terms, conditions and restrictions as
the Committee or its delegate shall determine. 
 (B) Qualified Performance Awards.  Performance Awards that
are intended to qualify as qualified performance-based compensation under Section 162(m) shall be paid, vested or otherwise deliverable solely on account of the attainment of one or more pre-established, objective Performance Goals established
and administered by the Committee in accordance with Section 162(m) prior to the earlier to occur of (x) 90 days after the commencement of the period of service to which the Performance Goal relates and (y) the lapse of 25% of the
period of service (as scheduled in good faith at the time the goal is established), and in any event while the outcome is substantially uncertain. A Performance Goal is objective if a third party having knowledge of the relevant facts could
determine whether the goal is met. Such a Performance Goal may be based on one or more business criteria that apply to a Participant, one or more business units, divisions or sectors of the Company, or the Company as a whole, and if so desired by
the Committee, by comparison with a peer group of companies. A Performance Goal may include one or more of the following and need not be the same for each Participant. 
  

	 	•	 	 revenue and income measures (which include revenue, gross margin, income from operations, net income, net sales, earnings per share, earnings before
interest, taxes, depreciation and amortization (“EBIDTA”), and economic value added (“EVA”); 

  

	 	•	 	 expense measures (which include costs of goods sold, selling, finding and development costs, general and administrative expenses and overhead costs);

  

	 	•	 	 operating measures (which include productivity, operating income, funds from operations, cash from operations, after-tax operating income, market
share, margin and sales volumes); 

  

 5 

	 	•	 	 cash flow measures (which include net cash flow from operating activities and working capital); 

  

	 	•	 	 liquidity measures (which include earnings before or after the effect of certain items such as interest, taxes, depreciation and amortization, and free
cash flow); 

  

	 	•	 	 leverage measures (which include debt-to-equity ratio and net debt); 

  

	 	•	 	 market measures (which include market share, stock price, growth measure, total shareholder return and market capitalization measures);

  

	 	•	 	 return measures (which include return on equity, return on assets and return on invested capital); 

  

	 	•	 	 corporate value measures (which include compliance, safety, environmental and personnel matters); and 

  

	 	•	 	 other measures such as those relating to acquisitions, dispositions or customer satisfaction. 

 Unless otherwise stated, such a Performance Goal need not be based upon an increase or positive result under a particular business criterion and could
include, for example, maintaining the status quo, performance relative to a peer group determined by the Committee or limiting economic losses (measured, in each case, by reference to specific business criteria). In interpreting Plan provisions
applicable to Performance Goals and qualified Performance Awards, it is the intent of this Plan to conform with Section 162(m), including, without limitation, Treasury Regulation §1.162-27(e)(2)(i), as to grants pursuant to this subsection
and the Committee in establishing such goals and interpreting the Plan shall be guided by such provisions. Prior to the payment of any compensation based on the achievement of Performance Goals applicable to qualified Performance Awards, the
Committee must certify in writing that applicable Performance Goals and any of the material terms thereof were, in fact, satisfied. Subject to the foregoing provisions, the terms, conditions and limitations applicable to any qualified Performance
Awards made pursuant to this Plan shall be determined by the Committee to the extent permitted by Section 162(m). 
 (b)
The Committee shall adjust the Performance Goals (either up or down) and the level of the Performance Award that a Participant may earn under this Plan, but only to the extent permitted pursuant to Section 162(m), if it determines that the
occurrence of external changes or other unanticipated business conditions have materially affected the fairness of the goals and have unduly influenced the Company’s ability to meet them, including without limitation, events such as material
acquisitions, changes in the capital structure of the Company, and extraordinary accounting changes. In addition, Performance Goals and Performance Awards shall be calculated without regard to any changes in accounting standards that may be required
by the Financial Accounting Standards Board after such Performance Goals are established. 
 (c) Notwithstanding anything to the
contrary contained in this Plan, no Participant may be granted, during any one-year period, Awards collectively consisting of (i) Options or Stock Appreciation Rights that are exercisable for or (ii) Stock Awards covering or relating to
more than 1,000,000 shares of Common Stock (the limitation referred to as the “Stock-based Awards Limitations”). No Plan Participant who is an employee may be granted Awards consisting of cash (including Cash Awards that are granted as
Performance Awards) in respect of any calendar year having a value determined on the Grant Date in excess of $20,000,000. 
 8.
Award Payment; Dividends; Substitution; Fractional Shares. 
 (a) General.  Payment of Awards may be
made in the form of cash or Common Stock, or a combination thereof, and may include such restrictions as the Committee shall determine, including, in the case of Common Stock, restrictions on transfer and forfeiture provisions. If payment of an
Award is made in the form of Restricted Stock, the applicable Award Agreement relating to such shares shall specify whether they are to be issued at the beginning or end of the Restriction Period. In the event that shares of Restricted Stock are to
be issued at the beginning of the Restriction Period, the certificates evidencing such shares (to the extent that such shares are so evidenced) shall contain appropriate legends and restrictions that describe the terms and conditions of the
restrictions applicable thereto. In the event that shares of Restricted Stock are to be issued at the end of the Restricted Period, the right to receive such shares shall be evidenced by book entry registration or in such other manner as the
Committee may determine. 
  

 6 

 (b) Dividends and Interest.  Rights to dividends or Dividend Equivalents
may be extended to and made part of any Stock Awards, subject to such terms, conditions and restrictions as the Committee may establish. The Committee may also establish rules and procedures for the crediting of interest on deferred cash payments
and Dividend Equivalents for Stock Awards. 
 (c) Fractional Shares.  No fractional shares shall be issued or
delivered pursuant to any Award under this Plan. The Committee shall determine whether cash, Awards or other property shall be issued or paid in lieu of fractional shares, or whether fractional shares or any rights thereto shall be forfeited or
otherwise eliminated. 
 9. Stock Option Exercise.  The price at which shares of Common Stock may be purchased
under an Option shall be paid in full at the time of exercise in cash or, if elected by the Participant, the Participant may purchase such shares by means of tendering Common Stock valued at Fair Market Value on the date of exercise, or any
combination thereof. The Committee, in its sole discretion, shall determine acceptable methods for Participants to tender Common Stock or other Awards. In accordance with the rules and procedures established by the Committee for this purpose and
subject to applicable law, Options may also be exercised through “cashless exercise” procedures approved by the Committee involving a broker or dealer approved by the Committee. 
 10. Taxes.  The Company shall have the right to deduct applicable taxes from any Award payment and withhold, at the time of
delivery or vesting of cash or shares of Common Stock under this Plan, an appropriate amount of cash or number of shares of Common Stock or a combination thereof for payment of taxes required by law or to take such other action as may be necessary
in the opinion of the Company to satisfy all obligations for withholding of such taxes. The Committee may also permit withholding to be satisfied by the transfer to the Company of shares of Common Stock theretofore owned by the holder of the Award
with respect to which withholding is required. If shares of Common Stock are used to satisfy tax withholding, such shares shall be valued based on the Fair Market Value when the tax withholding is required to be made. 
 11. Amendment, Modification, Suspension or Termination.  The Board or the Committee may amend, modify, suspend or terminate
this Plan for the purpose of meeting or addressing any changes in legal requirements or for any other purpose permitted by law, except that (i) no amendment or alteration that would materially adversely affect the rights of any Participant
under any Award previously granted to such Participant shall be made without the consent of such Participant and (ii) no amendment or alteration shall be effective prior to its approval by the shareholders of the Company to the extent
shareholder approval is otherwise required by applicable legal requirements or the requirements of any exchange on which the Common Stock is listed. Notwithstanding the foregoing, no amendment may cause an Option or SAR to be repriced, replaced,
regranted through cancellation or modified without shareholder approval (except in connection with a change in the Company’s capitalization as provided in paragraph 13), if the effect of such amendment would be to reduce the exercise price for
the shares underlying such Option or SAR. 
 12. Assignability.  Unless otherwise determined by the Committee
in the Award Agreement, no Award or any other benefit under this Plan shall be assignable or otherwise transferable. Any attempted assignment of an Award or any other benefit under this Plan in violation of this paragraph 12 shall be null and void.

 13. Adjustments. 
 (a) The existence of this Plan and Awards granted hereunder shall not affect in any way the right or power of the Company or its shareholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital structure or its business, or any merger or consolidation of the Company, or any issue of bonds, debentures, preferred or prior preference stocks ahead of or affecting
the shares of Common Stock or the rights thereof, or the dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or
otherwise. 
 (b) Except as hereinafter provided, the issue by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, for cash or property, or for labor or services, either upon direct sale or

  

 7 

 
upon exercise of rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Company convertible into such shares or other securities, shall not affect, and no
adjustment by reason thereof shall be made with respect to, the number of shares of Common Stock subject to Awards granted hereunder. 
 (c) The shares of Common Stock with respect to which Awards may be granted hereunder are shares of the Common Stock of the Company as presently constituted, but if, and whenever, prior to the delivery by the Company or a subsidiary of all
of the shares of Common Stock which are subject to the Awards or rights granted hereunder, the Company shall effect a subdivision or consolidation of shares or other capital readjustments, the payment of a stock dividend or other increase or
reduction of the number of shares of the Common Stock outstanding without receiving compensation therefore in money, services or property, the number of shares of Common Stock subject to the Plan, as well as the Stock-based Awards Limitations
described in paragraph 7(c) hereof, shall be proportionately adjusted and the number of shares of Common Stock with respect to which outstanding Awards or other property subject to an outstanding Award granted hereunder shall: 
 (i) in the event of an increase in the number of outstanding shares, be proportionately increased, and the cash
consideration (if any) payable per share of Common Stock shall be proportionately reduced; and 
 (ii) in the
event of a reduction in the number of outstanding shares, be proportionately reduced, and the cash consideration (if any) payable per share of Common Stock shall be proportionately increased. 
 (d) In the event of a corporate merger, consolidation, acquisition of property or stock, separation, spinoff, reorganization or liquidation,
the Board may make such adjustments to Awards or other provisions for the disposition of Awards as it deems equitable, and shall be authorized, in its sole discretion, (i) to provide for the substitution of a new Award or other arrangement
(which, if applicable, may be exercisable for such property or stock as the Board determines) for an Award or the assumption of the Award, regardless of whether in a transaction to which Section 424(a) of the Code applies, (ii) to provide,
prior to the transaction, for the acceleration of the vesting and exercisability of, or lapse of restrictions with respect to, the Award, or (iii) to cancel any such Awards and to deliver to the Participants cash in an amount that the Board
shall determine in its sole discretion is equal to the fair market value of such Awards on the date of such event, which in the case of Options or Stock Appreciation Rights shall be the excess of the Fair Market Value of Common Stock on such date
over the exercise price of such Award (for the avoidance of doubt, if the exercise price is less than Fair Market Value the Option or Stock Appreciation Right may be canceled for no consideration). 
 (e) Notwithstanding the foregoing: (i) any adjustments made pursuant to paragraph 13 to Awards that are considered “deferred
compensation” within the meaning of Section 409A shall be made in a manner which is intended to not result in accelerated or additional tax to a Participant pursuant to Section 409A; (ii) any adjustments made pursuant to
paragraph 13 to Awards that are not considered “deferred compensation” subject to Section 409A of the Code shall be made in such a manner intended to ensure that after such adjustment, the Awards either (A) continue not to be
subject to Section 409A of the Code or (B) do not result in accelerated or additional tax to a Participant pursuant to Section 409A of the Code; and (iii) in any event, neither the Committee nor the Board shall have the authority
to make any adjustments pursuant to paragraph 13 to the extent the existence of such authority would cause an Award that is not intended to be subject to Section 409A of the Code at the date of grant to be subject thereto as of the date of
grant. 
 14. Restrictions.  No Common Stock or other form of payment shall be issued with respect to any Award
unless the Company shall be satisfied based on the advice of its counsel that such issuance will be in compliance with including, but not limited to, applicable federal and state securities laws. The Participant shall not exercise or settle any
Award granted hereunder, and the Company or any Subsidiary will not be obligated to issue any shares of Common Stock or make any payments under any such Award if the exercise thereof or if the issuance of such shares of Common Stock or if the
payment made shall constitute a violation by the recipient or the Company or any subsidiary of any provision of any applicable law or regulation of any governmental authority or any securities exchange on which the Common Stock is listed.
Certificates evidencing shares of Common Stock delivered under this Plan (to the extent that such shares are so evidenced) may be subject to such stop transfer orders and other restrictions as the Committee may

  

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deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any securities exchange or transaction reporting system upon which the Common Stock
is then listed or to which it is admitted for quotation and any applicable federal or state securities law. The Committee may cause a legend or legends to be placed upon such certificates (if any) to make appropriate reference to such restrictions.

 15. Unfunded Plan.  Insofar as it provides for Awards of cash, Common Stock or rights thereto, this Plan
shall be unfunded. Although bookkeeping accounts may be established with respect to Participants who are entitled to cash, Common Stock or rights thereto under this Plan, any such accounts shall be used merely as a bookkeeping convenience. The
Company shall not be required to segregate any assets that may at any time be represented by cash, Common Stock or rights thereto, nor shall this Plan be construed as providing for such segregation, nor shall the Company, the Board or the Committee
be deemed to be a trustee of any cash, Common Stock or rights thereto to be granted under this Plan. Any liability or obligation of the Company to any Participant with respect to an Award of cash, Common Stock or rights thereto under this Plan shall
be based solely upon any contractual obligations that may be created by this Plan and any Award Agreement, and no such liability or obligation of the Company shall be deemed to be secured by any pledge or other encumbrance on any property of the
Company. Neither the Company nor the Board nor the Committee shall be required to give any security or bond for the performance of any obligation that may be created by this Plan. 
 16. Section 409A.  This Plan is intended to provide compensation which is exempt from or which complies with
Section 409A, and ambiguous provisions, if any, shall be construed in a manner that is compliant with or exempt from the application of Section 409A, as appropriate. This Plan shall not be amended in a manner that would cause the Plan or
any amounts payable under the Plan to fail to comply with the requirements of Section 409A, to the extent applicable, and, further, the provisions of any purported amendment that may reasonably be expected to result in such non-compliance shall
be of no force or effect with respect to the Plan. The Company shall neither cause nor permit any payment, benefit or consideration to be substituted for a benefit that is payable under this Plan if such action would result in the failure of any
amount that is subject to Section 409A to comply with the applicable requirements of Section 409A. For purposes of Section 409A, each payment under this Plan shall be deemed to be a separate payment. 
 Notwithstanding any provision of this Plan to the contrary, if the Participant is a “specified employee” within the meaning of
Section 409A as of the date of the Participant’s termination of employment and the Company determines, in good faith, that immediate payment of any amounts or benefits under this Plan would cause a violation of Section 409A, then any
amounts or benefits which are payable under this Plan upon the Participant’s “separation from service” within the meaning of Section 409A which (i) are subject to the provisions of Section 409A; (ii) are not
otherwise excluded under Section 409A; and (iii) would otherwise be payable during the first six-month period following such separation from service, shall be paid on the first business day next following the earlier of (1) the date
that is six months and one day following the date of termination or (2) the date of the Participant’s death. 
 17.
Governing Law.  This Plan and all determinations made and actions taken pursuant hereto, to the extent not otherwise governed by mandatory provisions of the Code or the securities laws of the United States, shall be governed by and
construed in accordance with the laws of the State of Texas. 
 18. No Right to Employment.  Nothing in this
Plan or an Award Agreement shall interfere with or limit in any way the right of the Company or a Subsidiary to terminate any Participant’s employment or other service relationship at any time, nor confer upon any Participant any right to
continue in the capacity in which he or she is employed or otherwise serves the Company or any Subsidiary. 
 19.
Successors.  All obligations of the Company under this Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect
purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. 
 20.
Tax Consequences.  Nothing in this Plan or an Award Agreement shall constitute a representation by the Company to a Participant regarding the tax consequences of any Award received by a Participant under this Plan. Although the
Company may endeavor to (i) qualify a Performance Award for favorable U.S. or foreign tax treatment or

  

 9 

 
(ii) avoid adverse tax treatment (e.g. under Section 409A), the Company makes no representation to that effect and expressly disavows any covenant to maintain favorable or unavoidable
tax treatment. The Company shall be unconstrained in its corporate activities without regard to the potential negative tax impact on holders of Performance Awards under this Plan. 
 21. Non-United States Participants.  The Committee may grant awards to persons outside the United States under such terms
and conditions as may, in the judgment of the Committee, be necessary or advisable to comply with the laws of the applicable foreign jurisdictions and, to that end, may establish sub-plans, modified vesting, exercise or settlement procedures and
other terms and procedures. Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards shall be granted, that would violate the Securities Exchange Act of 1934, the Code, any securities law, any governing statute, or
any other applicable law. 
 22. Effectiveness.  This Plan is effective January 21, 2010, subject to its
approval by the stockholders of the Company at the next annual meeting of stockholders. This Plan shall continue in effect for a term of ten years after the date on which the stockholders of the Company approve this Plan, unless sooner terminated by
action of the Board. 
 IN WITNESS WHEREOF, the Company has caused this Plan to be executed by its duly authorized officer on the date first
written above. 
  

	
	SCHLUMBERGER LIMITED
	
	By:                                       
                                         
                 
	
	Title:
                                         
                                         
          

  

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