Document:

EX-10.27.15

 Exhibit 10.27.15 

 
 

 
 [Grant Date] 

RETENTION AWARD 
 TERMS
AND CONDITIONS 
 These Retention Award Terms and Conditions describe terms and conditions of Restricted Stock Unit Awards granted under
the 2014 Omnibus Stock and Performance Incentive Plan of ConocoPhillips (referred to as the Plan) by ConocoPhillips (the Company) to
[                    ] (Employee). These Terms and Conditions, together with the Award Summary given to Employee, form the Award Agreement (the
Agreement) relating to the Award described. 
  

	1.	Type and Size of Grant. Subject to the Plan and this Agreement, the Company grants to Employee Restricted Stock Units. The number of units will be as set forth in the Award Summary given to Employee. The
Award Summary for Employee is made a part of this Agreement. 

  

	2.	Grant Date, Price, and Plan. The Grant Date is [                    ] and the Grant Price is
[                    ]. Awards are made under the 2014 Omnibus Stock and Performance Incentive Plan. 

 

	3.	Restrictions, Forfeiture, and Lapse of Restrictions. The Restricted Stock Units subject hereto may be canceled or forfeited as set forth herein. Except as otherwise noted in this Agreement, the following
summary table describes restrictions and terms, forfeiture, and lapse of restrictions, subject to the more detailed provisions set forth below: 

  

	 	Summary	Table 

  

					
	 
	Summary of Termination Rules
	Status	  	
Termination

Date
	  	Forfeiture or Lapsing of Restrictions
	Layoff	  	Prior to 6 months from grant date	  	Canceled upon termination
	  	6 months from grant date & after	  	Restrictions lapse on Termination date
	Disability	  	Any date after grant date	  	Restrictions lapse on Termination date
	Death	  	Any date after grant date	  	Restrictions lapse on Termination date
	Divestitures, outsourcing, and moves to joint ventures	  	Any date after grant date	  	Canceled upon Termination, unless approval otherwise
	All other Terminations, including Retirement	  	 	  	Canceled upon Termination

  

	 	(a)	Restrictions and Terms. 

	 	(i)	 The Award shall be held in escrow by the Company until the lapsing of restrictions placed upon the Award. The
Employee shall not have the right to sell, transfer, assign, or otherwise dispose of Restricted Stock Units granted in the Award until the escrow is 

  
 Page 1 of 10 

	 	
terminated. Except as set forth below, the Award shall be forfeited and the related Restricted Stock Units cancelled upon the Employee’s Termination of Employment with the Company prior to
the lapsing of restrictions. Restrictions shall lapse on the Restricted Stock Units granted in the Award on [                    ]. Upon the lapsing
of restrictions, the number of shares of unrestricted Stock equal to the number of shares of Restricted Stock Units for which the restrictions have so lapsed shall be registered in the Employee’s name, and the related shares of Restricted Stock
Units shall be canceled; provided, however, that in places where it is determined by the Authorized Party that payout in the form of unrestricted Stock is prohibited by law, regulation, or decree, or where the cost of legal compliance to issue the
unrestricted Stock would be unreasonably expensive, the Fair Market Value of such unrestricted Stock shall be paid in cash instead of settlement of the Award in unrestricted Stock. Cash payouts are only permitted where such legal restrictions exist.
Settlement of the Award in unrestricted Stock or cash payout, if any, shall be made when the restrictions lapse, but in any event, shall be made no later than March 15 of the year following the year in which such restrictions lapse.

	 	(ii)	Restricted Stock Units do not have any voting rights or other rights generally associated with Stock, and are merely an obligation of the Company to make settlement in accordance with the terms and conditions applicable
to such Restricted Stock Units. Restricted Stock Units shall accrue a dividend equivalent at such times as an ordinary quarterly cash dividend is paid on the Stock of the Company, which dividend equivalent shall be paid in cash to the Employee to
whom the Award was made. Payment of a dividend equivalent, if any, shall be made on the first day of the third month of each calendar quarter (or, if the New York Stock Exchange is not open on such day, the first day that the New York Stock Exchange
is open thereafter), but in any event, shall be made no later than March 15 of the year following the year in which the dividend related to the dividend equivalent is paid. 

 

	 	(b)	Termination of Employment. 

  

	 	(i)	General Rule for Termination. If, prior to the date on which restrictions lapse in accordance with the schedule set forth in the Award, the Employee’s employment with a Participating Company shall be
terminated for any reason except death, Disability, or Layoff, any Restricted Stock Units remaining in escrow pursuant to such Award shall be canceled and all rights thereunder shall cease; provided that the Authorized Party may, in its or his sole
discretion, determine that all or any portion of an Award shall not be canceled due to Termination of Employment. 

  

	 	(ii)	Layoff Within Six Months. If, prior to a date six months from the date a Retention Award is granted, the Employee’s employment with a Participating Company shall be terminated by reason of Layoff, such
Retention Award shall be canceled and all rights thereunder shall cease. 

  

	 	(iii)	Layoff After Six Months. If, on or after a date six months from the date a Retention Award is granted, the Employee’s employment with a Participating Company shall be terminated by reason of Layoff, the
Employee shall retain all rights provided by the Award at the time of such Termination of Employment. In such case, the restrictions on the Award shall lapse on the date of Termination of the Employee from the employ of the Company and its
subsidiaries, and settlement shall be made in accordance with the settlement provisions above. 

  

	 	(iv)	Disability. If, after the date the Award is granted, the Employee shall terminate employment following Disability of the Employee, the Employee shall retain all rights provided by the Award at the time of such
Termination of Employment. In such case, the restrictions on the Award shall lapse on the date of Termination of Employment from the employ of the Company and its subsidiaries, and settlement shall be made in accordance with the settlement
provisions above. 

  
 Page 2 of 10 

	 	(v)	Death. If, after the date an Award is granted, the Employee shall die while in the employ of a Participating Company, or after Termination of Employment by reason of Disability, or Layoff (and prior to the
cancellation of the Award), the executor or administrator of the estate of the Employee or the person or persons to whom the Award shall have been validly transferred by the executor or the administrator pursuant to will or the laws of descent and
distribution shall have the right to settlement of the Award to the same extent the Employee would have, had the Employee not died. In such case, the restrictions on the Award shall lapse upon the determination of death by the Authorized Party, and
settlement shall be made in accordance with the settlement provisions above. No transfer of an Award, or of the unrestricted Stock or other proceeds of an Award, by the Employee by will or by the laws of descent and distribution shall be effective
to bind the Company unless the Authorized Party shall have been furnished with written notice thereof and a copy of the will and such other evidence as the Authorized Party may deem necessary to establish the validity of the transfer and the
acceptance by the transferee or transferees of the terms and conditions of such Award. 

  

	 	(vi)	Transfers and Leaves. Transfer of employment between Participating Companies shall not constitute Termination of Employment for the purpose of any Award granted under the Program. Whether any leave of absence
shall constitute Termination of Employment for the purposes of any Award granted under the Program shall be determined by the Authorized Party, in each case in accordance with applicable law and by application of the policies and procedures adopted
by the Company in relation to such leave of absence. 

  

	 	(vii)	Divestiture, Outsourcing, or Move to Joint Venture. If, after the date the Award is granted, the Employee ceases to be employed by Participating Company as a result of (a) the outsourcing of a function,
(b) the sale or transfer of all or a portion of the equity interest of such Participating Company (removing it from the controlled group of companies of which the Company is a part), (c) the sale of all or substantially all of the assets of
such Participating Company to another employer outside of the controlled group of corporations (whether the Employee is offered employment or accepts employment with the other employer), (d) the Termination of the Employee by a Participating Company
followed by employment within a reasonable time with a company or other entity in which the Company owns, directly or indirectly, at least a 50% interest, prior to exercise of an Award, or (e) any other sale of assets determined by the
Authorized Party to be considered a divestiture under this program, the Authorized Party may, in its or his sole discretion, determine that all or a portion of any such Award shall not be canceled. In such cases, the restrictions on the Award shall
lapse on the date of Termination of the Employee from the employ of the Company and its subsidiaries, and settlement shall be made in accordance with the settlement provisions above. 

 

	 	(viii)	Change of Control. Upon a Change of Control, the following shall apply to any Award: 

  

	 	(1)	Each Employee shall immediately become fully vested in such Award that is not assumed, or substituted for, by an acquirer in connection with the Change of Control, and such Award shall not thereafter be forfeitable for
any reason, except as set forth in Section 3(c). 

  

	 	(2)	With regard to any other Award, each Employee shall become fully vested in such Award upon incurring a Severance following such Change of Control, and such Award shall not thereafter be forfeitable for any reason,
except as set forth in Section 3(c). 

  

	 	(3)	In the event of vesting of an Award pursuant to either Section 3(viii)(1) or Section 3(viii)(2), all restrictions and other limitations applicable to the Restricted Stock Units shall lapse and the Restricted
Stock Units shall be settled in unrestricted Stock or cash at the same times and upon the same events as it would otherwise have been made in accordance with the settlement provisions above. 

  
 Page 3 of 10 

	 	(ix)	Notwithstanding anything herein to the contrary, in the event that this Award or the dividend equivalents associated with this Award are includible in income pursuant to section 409A of the Internal Revenue Code,
settlement of the Award or any other distribution hereunder due to Separation from Service with the Company and its subsidiaries shall not be made to a “specified employee” (as that term is defined in section 409A(a)(2)(B)(i)) prior to six
months after the specified employee’s Separation from Service from the Company and its subsidiaries (or, if earlier, the date of death of the specified employee). 

 

	 	(c)	Detrimental Activities and Suspension of Award. 

	 	(i)	If the Authorized Party determines that, subsequent to the grant of any Award, the Employee has engaged or is engaging in any activity which, in the sole judgment of the Authorized Party, is or may be detrimental to the
Company or a subsidiary, the Authorized Party may cancel all or part of the Restricted Stock or Restricted Stock Units held in escrow pursuant to the Award or Awards granted to that Employee. 

 

	 	(ii)	If the Authorized Party, in its or his sole discretion, determines that the lapsing of restrictions on Restricted Stock or Restricted Stock Units held in escrow pursuant to any Award has the possibility of violating any
law, regulation, or decree pertaining to the Company, any of its subsidiaries, or Employee, the Authorized Party may freeze or suspend the Employee’s right to settlement or payout of the Award until such time as the lapse of restrictions would
no longer, in the sole discretion of the Authorized Party, have the possibility of violating such law, regulation, or decree. 

  

	 	(iii)	Notwithstanding anything herein to the contrary, any Award is subject to forfeiture or recoupment, in whole or in part, under applicable law, including the Sarbanes-Oxley Act and the Dodd-Frank Act. 

 

	4.	Assignment of Award Upon Death. Rights under the Plans and this Agreement cannot be assigned or transferred other than by (i) will or (ii) the laws of descent and distribution. 

 

	5.	Tax Withholding. In all cases the Employee will be responsible to pay all required withholding taxes applicable to the Award. Should a withholding tax obligation arise with regard to the Award or the
lapsing of restrictions on Restricted Stock Units granted in the Award, the withholding tax may be satisfied by withholding shares of Stock. The value of the units or shares of Stock withheld for this purpose shall be an amount consistent with
applicable laws and regulations. In cases where a withholding tax obligation arises prior to the lapse of restrictions on Restricted Stock Units granted in the Award, the withholding tax may be satisfied instead by payment of cash by the Employee.
Payment of cash shall not be allowed unless the Employee has elected to make such payment by payroll withholding over a period of six months following the date the obligation shall arise, which election must be made within thirty days of the Grant
Date of the relevant Award. If any interest is required under local laws, regulations, or decrees to be charged on or imputed against the payroll withholding, the Employee shall be responsible for paying such interest, which shall be withheld from
pay over the same six-month period. In cases where payment by payroll withholding cannot be made due to circumstances arising after the election or where the Authorized Party has determined that such
withholding would violate any applicable law, regulation, or decree, shares of Stock shall be withheld instead. When necessary, lapsing of restrictions may be accelerated by the Authorized Party to the extent necessary to provide shares of Stock to
satisfy any withholding tax obligation. This withholding tax obligation includes, but is not limited to, federal, state, and local taxes, including applicable non-U.S. taxes. If Australian tax law applies to
the Employee, then an Award is a scheme to which Subdivision 83A-C of the Income Tax Assessment Act 1997 of Australia applies (subject to the conditions in that Act). 

 

	6.	Shareholder Rights for Restricted Stock Units. The Employee shall not have the rights of a shareholder until the Restricted Stock Unit has been canceled and ownership of shares of Stock has been
transferred to the Employee. As described above, the Company may pay dividend equivalents with regard to Restricted Stock Units in certain circumstances. 

  
 Page 4 of 10 

	7.	Certain Adjustments. In the event certain corporate transactions, recapitalizations, or stock splits occur while Restricted Stock Units are outstanding, the Grant Price and the number of shares of
Restricted Stock Units shall be correspondingly adjusted. 

  

	8.	Relationship to the Plan. In addition to the terms and conditions described in this Agreement, Awards are subject to all other applicable provisions of the Plan. The decisions of the Committee with respect
to questions arising as to the interpretation of the Plan or this Agreement or as to findings of fact shall be final, conclusive, and binding. 

  

	9.	No Employment Guarantee. No provision of this Agreement shall confer any right upon the Employee to continued employment with any Participating Company. 

 

	10.	Governing Law. This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of Delaware. 

 

	11.	Amendment. Without the consent of the Employee, this Agreement may be amended or supplemented (i) to cure any ambiguity or to correct or supplement any provision herein which may be defective or
inconsistent with any other provision herein, or (ii) to add to the covenants and agreements of the Company for the benefit of an Employee or to add to the rights of an Employee or to surrender any right or power reserved to or conferred upon
the Company in this Agreement, provided, in each case, that such changes or corrections shall not adversely affect the rights of the Employee with respect to the grant of an Award evidenced hereby without the Employee’s consent, or
(iii) to make such other changes as the Company, upon advice of counsel, determines are necessary or advisable because of the adoption or promulgation of, or change in or of the interpretation of, any law or governmental rule or regulation,
including any applicable federal or state securities or tax laws. 

  
 Page 5 of 10 

 DEFINITIONS 

Capitalized terms not defined below shall have the meanings set forth in the Plan. 

“Authorized Party” means the person who is authorized to approve an Award, exercise discretion or take action under the
Administrative Procedure for the Restricted Stock Program and pursuant to the Program. With regard to Senior Officers, the Committee is the Authorized Party. With regard to other Employees, the Chief Executive Officer, acting as the Special Equity
Award Committee of the Board of Directors of the Company, is the Authorized Party, although the Committee may act concurrently as the Authorized Party. The Authorized Party may delegate duties and responsibilities regarding the operation of the
Program, other than the authority to grant an Award. 
 “Award” means the Restricted Stock Units granted to the Employee pursuant to
the foregoing terms, conditions, and limitations. 
 “Change of Control” has the meaning set forth in Attachment A to these Terms
and Conditions. 
 “Chief Executive Officer” or “CEO” means the Chief Executive Officer of the Company. 

“Committee” means the Human Resources and Compensation Committee of the Board of Directors of the Company, or any successor committee
to it. 
 “Company” means ConocoPhillips a Delaware corporation. 

“Disability” means a disability for which the employee in question has been determined to be entitled to either (i) benefits
under the applicable plan of long-term disability of the Company or its subsidiaries or (ii) disability benefits under the Social Security Act. In the absence of any such determination, the Authorized Party may make a determination that the
employee has a Disability. 
 “Fair Market Value” means, as of a particular date, the mean between the highest and lowest sales
price per share of such Stock on the consolidated transaction reporting system for the principal national securities exchange on which shares of Stock are listed on that date, or, if there shall have been no such sale so reported on that date, on
the next preceding date on which such a sale was so reported, or, at the discretion of the Committee, the price prevailing on the exchange at a designated time. 

“Grant Price” means the Fair Market Value for one share of Stock as of the date of the grant of an Award. Grant price is not adjusted
for any restrictions applicable to the Award. 
 “Layoff” means an applicable Termination of Employment due to layoff under
the ConocoPhillips Severance Pay Plan, the ConocoPhillips Executive Severance Plan, or the ConocoPhillips Key Employee Change in Control Severance Plan, or layoff or redundancy under any similar layoff or redundancy plan which the Company or its
subsidiaries may adopt from time to time. If all or any portion of the benefits under the redundancy or layoff plan are contingent on the employee’s signing a general release of liability, such Termination shall not be considered as a
“Layoff” for purposes of this Award unless the employee executes and does not revoke a general release of liability, acceptable to the Company, under the terms of such layoff or redundancy plan. In order to be considered a layoff for
purposes of this Award, the Termination of Employment must also be considered a Separation from Service. 
 “Participating Company”
includes ConocoPhillips and its 100% owned subsidiaries, including both those directly owned and those owned through subsidiaries, whose participation has been approved by the Authorized Party. 

“Restricted Stock Unit” means a unit equal to one share of Stock (as determined by the Authorized Party) that is subject to forfeiture
provisions or that has certain restrictions attached to the ownership thereof. 

  
 Page 6 of 10 

 “Retirement” means Termination at age 55 or older with a minimum of 5 years
service with a Participating Company; provided, however, that with regard to an Employee not on the United States payroll, the CEO may approve the use of a different definition. Service is defined by the policies of the Participating Company. 

“Senior Officer” means the Chairman of the Board, the CEO, all other executive officers of the Company (determined in accordance with
the Company’s custom and practice pursuant to section 16(b) of the Securities Exchange Act of 1934, as amended), all other employees of the Company who report directly to the CEO and whose salary grade is 23 or higher, and all other employees
of the Company whose salary grade is 26 or higher. 
 “Separation from Service” means “separation from service” as that
term is used in section 409A of the Internal Revenue Code. 
 “Stock” means shares of common stock of the Company, par value $.01.
Stock may also be referred to as “Common Stock.” 
 “Termination” or “Termination of Employment”
means cessation of employment with the Participating Companies, determined in accordance with the policies and practices of the Participating Company for whom the Employee was last performing services. 

  
 Page 7 of 10 

 Attachment “A” 

“Change of Control” 
 The
following definitions apply to the Change of Control provision in Section 10 of the Plan. 
 “Affiliate” shall have the
meaning ascribed to such term in Rule 12b-2 of the General Rules and Regulations under the Exchange Act, as in effect at the time of determination. 

“Associate” shall mean, with reference to any Person, (a) any corporation, firm, partnership, association, unincorporated
organization or other entity (other than the Company or a subsidiary of the Company) of which such Person is an officer or general partner (or officer or general partner of a general partner) or is, directly or indirectly, the Beneficial Owner of
10% or more of any class of equity securities, (b) any trust or other estate in which such Person has a substantial beneficial interest or as to which such Person serves as trustee or in a similar fiduciary capacity and (c) any relative or
spouse of such Person, or any relative of such spouse, who has the same home as such Person. 
 “Beneficial Owner” shall mean,
with reference to any securities, any Person if: 
 (a) such Person or any of such Person’s Affiliates and Associates,
directly or indirectly, is the “beneficial owner” of (as determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Exchange Act, as in effect at the time of determination) such
securities or otherwise has the right to vote or dispose of such securities; 
 (b) such Person or any of such Person’s
Affiliates and Associates, directly or indirectly, has the right or obligation to acquire such securities (whether such right or obligation is exercisable or effective immediately or only after the passage of time or the occurrence of an event)
pursuant to any agreement, arrangement or understanding (whether or not in writing) or upon the exercise of conversion rights, exchange rights, other rights, warrants or options, or otherwise; provided, however, that a Person shall not be deemed the
Beneficial Owner of, or to “beneficially own,” (i) securities tendered pursuant to a tender or exchange offer made by such Person or any of such Person’s Affiliates or Associates until such tendered securities are accepted for
purchase or exchange or (ii) securities issuable upon exercise of Exempt Rights; or 
 (c) such Person or any of such
Person’s Affiliates or Associates (i) has any agreement, arrangement or understanding (whether or not in writing) with any other Person (or any Affiliate or Associate thereof) that beneficially owns such securities for the purpose of
acquiring, holding, voting (except as set forth in the proviso to subsection (a) of this definition) or disposing of such securities or (ii) is a member of a group (as that term is used in Rule
13d-5(b) of the General Rules and Regulations under the Exchange Act) that includes any other Person that beneficially owns such securities; 

provided, however, that nothing in this definition shall cause a Person engaged in business as an underwriter of securities to be the Beneficial Owner of, or
to “beneficially own,” any securities acquired through such Person’s participation in good faith in a firm commitment underwriting until the expiration of 40 days after the date of such acquisition. For purposes hereof,
“voting” a security shall include voting, granting a proxy, consenting or making a request or demand relating to corporate action (including, without limitation, a demand for a shareholder list, to call a shareholder meeting or to inspect
corporate books and records) or otherwise giving an authorization (within the meaning of section 14(a) of the Exchange Act) in respect of such security. 

  
 Page 8 of 10 

 The terms “beneficially own” and “beneficially owning” shall have meanings
that are correlative to this definition of the term “Beneficial Owner.” 
 “Board” shall have the meaning set forth in
the Plan. 
 “Change of Control” shall mean any of the following occurring on or after January 1, 2017: 

(a) any Person (other than an Exempt Person) shall become the Beneficial Owner of 20% or more of the shares of Common Stock
then outstanding or 20% or more of the combined voting power of the Voting Stock of the Company then outstanding; provided, however, that no Change of Control shall be deemed to occur for purposes of this subsection (a) if such Person shall
become a Beneficial Owner of 20% or more of the shares of Common Stock then outstanding or 20% or more of the combined voting power of the Voting Stock of the Company then outstanding solely as a result of (i) any acquisition directly from the
Company or (ii) any acquisition by a Person pursuant to a transaction that complies with clauses (i), (ii), and (iii) of subsection (c) of this definition; 

(b) individuals who, as of January 1, 2017, constitute the Board (the “Incumbent Board”) cease for any reason
to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to January 1, 2017 whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at
least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board; provided, further, that there shall be excluded, for this purpose, any such individual whose
initial assumption of office occurs as a result of any actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other
than the Board; 
 (c) the Company shall consummate a reorganization, merger, statutory share exchange, consolidation, or
similar transaction involving the Company or any of its subsidiaries or sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or securities of another entity by the Company or any of its
subsidiaries (a “Business Combination”), in each case, unless, following such Business Combination, (i) 50% or more of the then outstanding shares of common stock of the corporation, or common equity securities of an entity other than a
corporation, resulting from such Business Combination and the combined voting power of the then outstanding Voting Stock of such corporation or other entity are beneficially owned, directly or indirectly, by all or substantially all of the Persons
who were the Beneficial Owners of the outstanding Common Stock immediately prior to such Business Combination in substantially the same proportions as their ownership, immediately prior to such Business Combination, of the outstanding Common Stock,
(ii) no Person (excluding any Exempt Person or any Person beneficially owning, immediately prior to such Business Combination, directly or indirectly, 20% or more of the Common Stock then outstanding or 20% or more of the combined voting power
of the Voting Stock of the Company then outstanding) beneficially owns, directly or indirectly, 20% or more of the then outstanding shares of common stock of the corporation, or common equity securities of an entity other than a corporation,
resulting from such Business Combination or the combined voting power of the 

  
 Page 9 of 10 

 
then outstanding Voting Stock of such corporation or other entity, and (iii) at least a majority of the members of the board of directors of the corporation, or the body which is most
analogous to the board of directors of a corporation if not a corporation, resulting from such Business Combination were members of the Incumbent Board at the time of the initial agreement or initial action by the Board providing for such Business
Combination; or 
 (d) the shareholders of the Company shall approve a complete liquidation or dissolution of the Company
unless such liquidation or dissolution is approved as part of a transaction that complies with clauses (i), (ii), and (iii) of subsection (c) of this definition. 

“Common Stock” shall have the meaning set forth in the Plan. 

“Company” shall have the meaning set forth in the Plan. 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

“Exempt Person” shall mean any of the Company, any entity controlled by the Company, any employee benefit plan (or related trust)
sponsored or maintained by the Company or any entity controlled by the Company, and any Person organized, appointed, or established by the Company for or pursuant to the terms of any such employee benefit plan. 

“Exempt Rights” shall mean any rights to purchase shares of Common Stock or other Voting Stock of the Company if at the time of the
issuance thereof such rights are not separable from such Common Stock or other Voting Stock (i.e., are not transferable otherwise than in connection with a transfer of the underlying Common Stock or other Voting Stock), except upon the
occurrence of a contingency, whether such rights exist as of January 1, 2017 or are thereafter issued by the Company as a dividend on shares of Common Stock or other Voting Securities or otherwise. 

“Person” shall mean any individual, firm, corporation, partnership, association, trust, unincorporated organization, or other
entity. 
 “Voting Stock” shall mean, (1) with respect to a corporation, all securities of such corporation of any class or
series that are entitled to vote generally in the election of, or to appoint by contract, directors of such corporation (excluding any class or series that would be entitled so to vote by reason of the occurrence of any contingency, so long as such
contingency has not occurred) and (ii) with respect to an entity which is not a corporation, all securities of any class or series that are entitled to vote generally in the election of, or to appoint by contract, members of the body which is
most analogous to the board of directors of a corporation. 

  
 Page 10 of 10Exhibit

Exhibit 10.22

	
	
	Shire International GmbH
Zählerweg 10
CH-6300, Zug
Switzerland
Tel: +41 (0) 41 288 40 00
Fax: +41 (0) 41 288 40 05
shire.com

19 November 2017

CONFIDENTIAL

Thomas Dittrich

Dear Thomas, 

Buy-out awards
This letter sets out the basis on which it has been agreed that certain buyout awards (“Buy-out Awards”) will be granted to you in recognition of the fact that you will forfeit incentive awards granted to you by your previous employer (Sulzer AG) on leaving. The Buy-out Awards are being granted in connection with your appointment as Chief Financial Officer of Shire plc.
Details of Buy-out Awards
You will be granted the Buy-out Awards as set out in the table below as soon as reasonably practicable after your Date of Employment (as set out in your employment agreement) subject to you providing evidence to our satisfaction that your Sulzer awards have been forfeit:
	
				
	Description
	Maximum
Grant Value*
	Replacement Award Vesting Period
	Vesting Basis

	In recognition of the loss of the Sulzer annual bonus payable in respect of the financial year 2017 (“Bonus Buy-out”)
	CHF 527,000 
	75% in cash on the date set out below, remainder in Shares that vest after three years (vesting - 2021)
	Payment based on Sulzer performance in 2017 as shown in 2017 report and accounts published in 2018

	In recognition of the loss of the 2015 Sulzer Long Term Incentive award (“LTI 2015 Buy-out”)
	CHF 1,320,000
	Grant is awarded in 2018 and vests one year after grant (vesting - 2019)
	Vesting based on Sulzer performance in for the 2015 LTI grant which concludes 31 December 2017 and is reported in Sulzer’s 2018 report and accounts published in 2019

	In recognition of the loss of the 2016 Sulzer Long Term Incentive award (“LTI 2016 Buy-out”)
	CHF 1,000,000
	Grant is awarded in 2018 and vests three years after grant (vesting - 2021) 
	Vesting based on Shire performance over the performance cycle from 2018 - 2020

	Total
	CHF 2,847,000
	 
	 

Exhibit 10.22

*To be adjusted based on actual Sulzer performance disclosed for the 2015 replacement grant and adjusted based on the actual Shire performance achieved for the 2016 replacement grant
Bonus Buy-out - adjustment to Grant Value
The Grant Value of the Bonus Buy-out shown in the table above shall be adjusted upwards or downwards as follows:
		
	•
	so that it reflects the actual financial performance achieved under Sulzer’s bonus plan for the same period, as disclosed in their report and accounts.  The adjustment will only be made in respect of financial targets; and

		
	•
	to take account of any payments or other value received by you in respect of the Sulzer annual bonus payable in respect of the financial year 2017.

Bonus Buy-out - cash payment 
75% of the resulting Grant Value shall be paid in cash (less any taxes).  The payment shall be made by the later of the first practicable payroll following the Date of Employment and the date on which Sulzer publish their report and accounts showing the actual financial performance achieved under Sulzer’s bonus plan.  
Bonus Buy-out - share award 
The remaining 25% of the Bonus Buy-out (“Bonus Share Award”) will be granted in the form of Restricted Stock Units and be subject to the same terms as set out in the Shire Long Term Incentive Plan 2015 (the ‘Shire Plan’) as amended from time to time. A copy of the rules is enclosed with this letter.  
The Normal Vesting Date for the Bonus Share Award will be the end of the Vesting Period specified in the table above. The Vesting Period will start on the Relevant Date (as described below).
2015 LTI Buy-out
The 2015 LTI Buy-out will be granted in the form of Restricted Stock Units and be subject to the same terms as set out in the Shire Plan as amended from time to time. 
The 2015 LTI Buy-out shall be adjusted downwards as follows:
		
	•
	so that it will vest only to the same percentage as the actual disclosed performance of the 2015 Sulzer LTI award for the same period, as disclosed in their report and accounts; and

		
	•
	to take account of any payments or other value received by you in respect of the 2015 Sulzer LTI award.

2016 LTI Buy-out
The 2016 LTI Buy-out will be granted in the form of Shire Performance Share Units and be subject to the same terms as set out in the Shire Plan as amended from time to time. 
The 2016 LTI Buy-out shall be adjusted downwards as follows:
		
	•
	so that it will vest only to the extent to which the performance conditions for annual equity awards granted in 2018 under the Shire Plan have been satisfied; and

		
	•
	to take account of any payments or other value received by you in respect of the 2016 Sulzer LTI award.

Exhibit 10.22

Calculating the number of shares
The value of the shares in Shire plc (‘Shares’) subject to the 2015 and 2016 LTI Buy-outs and the Bonus Share Award will be equal to the Grant Value specified in the table above (rounded up to the nearest whole Share) and adjusted as described. 
The value of a Share, for these purposes, will be the mean average of the closing middle-market price of a Share on the London Stock Exchange for the three Business Days up and including the Relevant Date, with the CHF Grant Value being converted into sterling on the basis of the latest approved monthly exchange rates provided by Shire’s finance department.
The ‘Relevant Date’, for the 2015 and 2016 LTI Buy-outs and the Bonus Share Award is the date on which it is granted or, if it is granted more than three months after your Employment Date, your Employment Date.
The 2015 and 2016 LTI Buy-outs  and the Bonus Share Award:
		
	•
	will not be subject to a Retention Period; and

		
	•
	will carry a Dividend Equivalent.

Malus and clawback
For the avoidance of doubt the Buy-out Awards will be subject to the Company’s policies and rules regarding malus and clawback, as in effect from time to time.
Take-over
If there is a Takeover before the Date of Employment and as a consequence you are not granted any Bonus Buy-out or the 2015 and 2016 LTI Buy-outs, then you will receive a cash payment (less any taxes due).  The cash payment will be equal to the Grant Value specified in the table above, less any value received in respect of the forfeit Sulzer awards and as adjusted as described above.   The payment shall be the same dates on which the Bonus Buy-out or the 2015 and 2016 LTI Buy-outs would have vested had they been granted.
Remuneration policy
Nothing in this letter will require us to make any payments or make and award which are not in accordance with the Shire remuneration policy approved by shareholders.
Meaning of words used
Terms which are used in this letter which are defined in the rules of the Plan have the same meaning when used in this letter.
This letter sets out the entire agreement between us in relation to the forfeit of your Sulzer incentive awards.

Exhibit 10.22

Please sign the enclosed copy letter and return it to me.
Yours sincerely,

/s/ Dr. Flemming Ornskov

Flemming Ornskov, MD
Chief Executive Officer, Shire plc

I accept the terms of the Buy-out Awards set forth above.

/s/ Thomas Dittrich            
Thomas Dittrich

Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00279-of-00352.parquet"}]]