Page 14 - Shell 2022 Negotiations 20.05.2022

6/ PRIORITY 3: VALUE IMPROVEMENT - PROPOSED CONTRACT CHANGE

We propose to update the bonus/malus table to reflect the following changes.

2022 - Contract model

Value delivery CAPEX Fees Margin at risk /Value Proposed alternate Enhanced share of Existing contract
Percentage created model VI rewards bonus malus

4.0% £125,000,000 £5,515,000 £ -
40% to 50% -£ 220,600 £ - -40%
50% to 60% -£ 165,450 £ - -30% Margin at risk
60% to 70% -£ 137,875 £ - -25%

70% to 80% £ - £ - 0%
80% to 90% £ - £ - 0% Tolerance zone
90% to 100% £ - £ - 0% sharing
100% £ - £ - 0%
100% to 110% £ 125,000.0 £ 150,000.0 30% 25%
110% to 130% £ 375,000.0 £ 450,000.0 30% 25% Share of
130% to 150% £ 750,000.0 £ 1,000,000.0 40% 30% additional value

150% to 170% £ 1,400,000.0 £ 1,400,000.0 40% 40& created
Greater than £ 1,750,000.0 £ 1,575,000.0 45% 50%
170%