Domestic Relocation Transferred Exempt and Experienced New Hire Employee

Transcription

1 Domestic Relocation Transferred Exempt and Experienced New Hire Employee Updated: September, ELIGIBILITY INITIATING YOUR RELOCATION WRRI WILL ASSIGN A RELOCATION COORDINATOR TO YOU TRAVEL AND LIVING EXPENSES Lump-Sum Provision Final Move Trip Relocation Differential Allowance (RDA) DESTINATION SERVICES Broker Referral Fee Requirement Purchase Considerations: HOME SALE ASSISTANCE Eligibility and Services Broker Listing Agreement Exclusions: Amended Value Sale Guaranteed Offer Home Sale Incentive Bonus Loss on Sale (LOS) Assistance Mobile Homes Duplicate Housing HOME PURCHASE ASSISTANCE Eligibility Covered Expenses Equity Loan Financing RENTAL ASSISTANCE Lease Cancellation... 17

2 8.2 Renting a New Home RESETTLEMENT EXPENSE ALLOWANCE HOUSEHOLD GOODS SHIPMENT CAREER AND LIFE TRANSITION SERVICES Community Connections Research Employment Assistance TAX ASSISTANCE REPAYMENT OF RELOCATION BENEFITS LIMITATIONS OF THIS POLICY... 25

3 1.0 Eligibility The provisions outlined here apply to authorized moves of exempt employees of BP operations in the U.S. This includes transferring employees and experienced new hires that are homeowners and renters. If two or more family members will be eligible for relocation benefits with BP, it will be regarded as a single relocation and only one set of relocation benefits will be provided. In addition, your move must meet these conditions: You must be relocated at Company request, The distance from your former home to your new work location must be at least fifty (50) miles more than the distance from your former home to your former work location, You must initiate and complete each provision for which you are eligible as well as submit all expenses within one (1) year of the initiation date of your relocation benefits or at any earlier date requested by BP or its relocation services provider. You must move to within a reasonable distance (as defined by the IRS and the Company) of your new work location. Your strategic performance unit/business unit/function may require that you move within a specified mileage of the work location. 2.0 Initiating Your Relocation Your HR Representative or Resourcing Specialist will initiate your relocation benefits through the BP People Service Delivery Centre (SDC). The SDC will complete a Relocation Authorization Form and submit it to WRRI Relocation Resources, Inc. (WRRI) who will handle the administration of your relocation benefits. It is very important that you provide information regarding your tax filing status, i.e., single, married, number of dependents to your Weichert Relocation Coordinator. This information is used in the calculation of your tax assistance benefits. The Authorization will not be processed by WRRI earlier than 60 days prior to initiation date of your relocation benefits. Your WRRI Relocation Coordinator will be requesting your social security number during the initiation process as it is required for the purposes of completing required home sale documentation. All direct relocation benefit payments are paid and reported via payroll. If you have any questions regarding the policy, please call WRRI at WRRI will assign a Relocation Coordinator to you Your Relocation Coordinator will provide general guidance throughout the entire process, coordinate all parts of the move, and approve relocation expenses. All

4 questions regarding the policy and process and all requests for relocation materials should be directed to your Relocation Coordinator. WRRI will begin processing your moving-related expenses once it has received the Employee Domestic US Relocation Authorization Form. In order for you to have the necessary funds to handle expenses as they are incurred, your Lump-Sum Allowance and Resettlement Expense Allowance may be processed as soon as you, the relocating employee, make the request. All direct employee relocation reimbursements and allowances will be paid via BP payroll. Additionally, if you are just starting employment with BP, you must be on payroll in order to receive any relocation allowances. It is very important that you contact your Relocation Coordinator before you begin any relocation activity. For example, do not list your current home, select a real estate broker, or sign a contract of sale in your new location before speaking with your Relocation Coordinator. The real estate agents you work with on both the sale of your old home and the purchase of your new home are required to pay a referral fee to WRRI on BP's behalf. For more information regarding the broker referral fee, refer to Destination Services and Broker Listing Agreement Exclusions. 4.0 Travel and Living Expenses 4.1 Lump-Sum Provision You may spend this money according to your own needs and circumstances. No accounting is required to BP. (We recommend that you keep receipts for all expenditures should you need them for any tax or other reason.) Calculation of the lump-sum is based on a reasonable estimate of expenses you will incur for: Family size for home selection trip (house hunting), Authorized days for home selection and temporary living, Lodging costs and meals for employee only (excluding Alaska) for temp living, Rental car costs (when applicable) for temporary living and house hunting trip, Number of meals associated with the final move The lump-sum will include mileage at the current IRS travel rate for a car you drive on your home selection trip. If you are a homeowner in your current location, your lump-sum will be calculated on a seven-day (7-day) home selection trip for you and your family members. If you are a renter, the calculation will be based on a four-day (4-day) home finding trip. Airfare calculations are based on estimated14-day advance fares with Saturday stay over, using BP's primary carrier(s) for home selection trip and final trip. Rental car rates are based on full-sized vehicle rental rates during home selection trip.

5 Home selection lodging and meal costs are based on current government travel per diem rates for 1 person and include an incremental BP approved amount for the spouse, dependents and children accompanying employee on the home selection trip. A child is defined as age 12 and under. Temporary living lodging in the lower 48 states is based on a one bedroom corporate housing rate for thirty (30) days for homeowners and fifteen (15) days for renters. For employees moving in or out of Alaska, lodging is based on a one bedroom corporate housing rate for forty-five (45) days for both homeowners and renters. Temporary living meals are based on current government travel per diem rates for 1 person and include an additional BP approved incremental amount for spouse and dependents where appropriate. Final move meals are based on current government travel per diem rates and include an incremental BP approved amount for the spouse and dependents where appropriate. Depending on your personal situation and management of your move, your actual expenses may vary from the estimate. You are not required to repay any unused funds but, conversely, no additional lump sum payment will be made should your expenses exceed the lump sum amount. The Lump-Sum Payment and the Resettlement Expense Allowance (reference Section 9) may be processed together and paid to you in one check. Both the Lump Sum and Resettlement Expense Allowance are paid via payroll. 4.2 Final Move Trip Lodging and travel associated with the final trip are reimbursed separately and are nontaxable. You will be reimbursed for one night's lodging at the old location (after your furnishings have been removed from your former home) and one night's lodging immediately upon arrival at the new location plus one night's lodging for every 400 miles should you drive to the new location. Additional expenses incurred, including those while awaiting delivery of household goods, will not be reimbursed. Actual receipts will need to be submitted on expense claim. 4.3 Relocation Differential Allowance (RDA) The RDA payment is higher cost area financial assistance and applies to transferred exempt employees only and experienced new hires to Alaska. Financial assistance may be provided to you if the cost-of-living index at your new work location is higher than at your old work location. This determination is based on criteria established by an outside third party for BP. Your Relocation Coordinator will advise you if you qualify for assistance. The assistance may be used by you in one of three ways. Each option is detailed in the RDA Policy. Regardless of the option you select, the assistance is short-term and designed to assist you in adjusting to the higher costs of housing, goods and services, and taxes you may experience as a result of relocation. It is important you understand the assistance is NOT intended to provide dollar-for-dollar coverage for any increased expenses you incur due to your personal circumstances and choices. Given that no two relocations or personal fiscal circumstances are identical, the Company encourages you to obtain

6 professional advice before deciding which financial assistance option to select. Once you have made a selection, that decision is irrevocable. Transferring employees who are renters and who are eligible for RDA financial assistance are eligible for the cash payment option only. RDA payments are eligible for tax assistance for purposes of FICA (social security/medicare) tax only. 5.0 Destination Services Do not contact a real estate agent before calling your Relocation Coordinator. 5.1 Broker Referral Fee Requirement If you plan on using the services of a real estate agent to sell your old home and/or buy your new home, WRRI will refer you to one. As part of your relocation, the agent(s) you work with is required to pay a referral fee to WRRI on BP's behalf. Regardless of whether you select an agent on your own or accept an agent referred by WRRI, the agent may not be an immediate relative of you or your spouse or significant other. For the purposes of this policy, an immediate relative would include a spouse, significant other, parent or grand-parent, sibling, aunt, uncle, niece or nephew. This referral fee helps control BP's relocation costs. If you have a particular agent already in mind, or would like to use the services of an agent who has been recommended to you, you can still do so, however, the agent must agree to pay the referral fee. The Relocation Coordinator will assist you with the referral process. If you contact an agent directly, your Relocation Coordinator will provide you with a broker referral form that your agent must sign and return to your Relocation Coordinator. Finding a place to live in your new location is probably one of your first concerns once you know that you are relocating. In fact, you will probably need to take care of this concern even before you start the process of selling your current home or giving notice to your landlord. Whether you intend to purchase or rent a home in the new location, WRRI will help you find what you are looking for. WRRI offers a variety of services to help you find a new community and select a home. These include counseling (where available) regarding mortgage prequalification, mortgage application, broker referral, settling-in services, local school options, apartment finding for renters, and dependent care programs in major cities in the United States. Using these services can make settlement in your new home faster and more problem-free for you and your family. Your Relocation Coordinator can provide details about any of these services available to you at your new location. 5.2 Purchase Considerations: Certain types of homes are ineligible for Home Sale Assistance under BP's policy and you should carefully consider this before buying a new home. If you purchase a property that is ineligible for Home Sale Assistance, you will be ineligible to receive certain benefits covered by this policy should you be relocated again with BP. For example, your home may not be eligible for a Guaranteed Offer if it is

7 synthetic stucco. Refer to Home Sale Assistance (Section 6) for details before purchasing a home in your new location. 6.0 Home Sale Assistance 6.1 Eligibility and Services Eligibility for Amended Value Sale, Guaranteed Offer, Home Sale Incentive Bonus and Loss on Sale are identified separately below and are subject to each of the program requirements respectively. To maintain eligibility for all Home Sale Assistance benefits, your initial list price must not exceed 105% of the average of the most probable sale price value of the two Broker s Market Analysis provided as part of your Marketing Assistance Program. WRRI will help you sell your home through its Marketing Assistance Program. The Marketing Assistance program will provide you with a Broker s Marketing Analysis provided by two prescreened Realtors in your area. Through the program you will receive help with selecting a Realtor, consultation with you and your Realtor to develop marketing strategies, and advice about any offers you receive. Your Relocation Coordinator will advise you of the normal and customary commission percentage for your area. BP will cover only the commission amount that is customary for your area. If you offer additional commissions and/or agent bonuses, they must be paid at your own expense. If you qualify, you will also receive an offer from WRRI to purchase your home. This is called the Guaranteed Offer (see Section 6.4) and may be available should you be unable to sell your home. To be eligible* for Home Sale Assistance: You must be at least a 50% owner of the home. Be listed on the title. Start and complete the sale process within one (1) year of the effective date of initiation of your relocation benefits. The property must be your primary residence at the time of your relocation. The property must be marketable. Also, it must meet one (1) of the following criteria: (1) A detached single family dwelling or a two-family (duplex) home having a lot typical of residences in the immediate community, recorded on a single deed, and being free of excessive acreage, (2) A condominium apartment or townhouse, (3) An attached, fee-simple townhouse, or (4) A mobile or modular home on a permanent foundation on land which you own. In addition, even if your home meets the above criteria, your home will not be eligible for Home Sale Assistance if any of the following exist: Your lot size is more than five (5) acres, even if this is the typical lot size for homes in your community

8 Your home contains synthetic stucco and you purchased the home while being relocated with BP under the BP relocation policy and your relocation was initiated on or after November 15, Click here for more information: Your home is not located in Alaska, and contains composition board siding and you purchased the home while being relocated with BP under the BP relocation policy and your relocation was initiated on or after November 15, 2001.* Click here for additional information: Your home has uncorrected code violations or title defects, or Your home has deferred maintenance or un-remediated defects as identified through initial home inspections completed by WRRI. *Eligibility will be determined at the time of sale, the same as any other type of home. In accordance with standard procedure, BP reserves the right to disallow a property's eligibility if any defect is determined to present severe marketability issues for the home even after repairs have been completed. Homes in Alaska with composition board siding are not automatically excluded from future home sales assistance benefits. If you purchase a home in Alaska with composition board siding, it is strongly recommended that you obtain a thorough inspection of the siding prior to finalizing the purchase agreement. It is suggested that the contract to purchase be contingent on the completion and review of the inspection. Any defects revealed through the inspection should be seriously considered before removing the contingency and completing the purchase. Should a future BP relocation occur, any necessary repairs must be made at your expense prior to the home being considered eligible for Home Sales Assistance BP reserves the right to exclude homes, in any area, with the following attributes from eligibility for Home Sale Assistance: Severe marketability problems, Zoning or easement disputes, Homes with unfinished construction and/or remodeling, and Homes with any of the following conditions: structural problems, safety concerns, un-remediated radon, termite infestation, or mold issues Homes are subject to passing various inspections to be eligible for the Home Sale Assistance program. Your Relocation Coordinator will order one or more technical inspections paid for by BP to assess your property for structural integrity, roof condition, building code compliance, termites and general home condition. The various inspectors will contact you or your real estate agent for an appointment to inspect the home. If the inspections indicate any necessary repairs, you will be required to make the repairs or to agree to have the cost of repairs up to a total of $500 deducted from your equity before the Guaranteed Offer or Amended Value Sale process is completed and any equity is disbursed to you. If the total repair costs exceed $500, you will be required to have the repairs completed immediately. BP does not accept as is home sale agreements and all repairs must be completed in the home sale program. It is highly recommended that you delay

9 listing your home for sale until the Broker s Marketing Analysis and upfront inspections are completed. Doing so allows you to establish a more accurate listing and marketing strategy that may address any defects for which you will be responsible and will remediate. WRRI will not be able to sign any Home Sale documents until the inspection process has been completed. 6.2 Broker Listing Agreement Exclusions: To be eligible for assistance, any Broker listing agreement must include this exclusion clause: "This listing agreement is subject to the following provisions: The owners hereby reserve the right: to sell the property to WRRI at any time and in such event to cancel this listing agreement with no obligation for payment of any commission or the continuation of any listing thereafter, and to assign any acceptable written offer hereunder to WRRI for closing with payment of commission being the obligation of WRRI, the commission being earned upon successful closing of the sale of the home, and in consideration of the information provided, the listing agent agrees to pay WRRI a referral fee equal to 35% of the referral portion of the transaction, which is based on the total commission paid to and received by the listing agent on account of the sale and purchase of the real property. The listing agent authorizes the closing agent to deduct the referral fee from the commission monies due at the closing and to pay WRRI directly." You may add other clauses to the agreement that reflect any personal contractual requirements. Your Relocation Coordinator will work with you and your Realtor to develop a marketing strategy to help you get the best price and terms for your home. This includes the initial list price, cosmetic changes, advertising, open houses and helping you monitor the performance of your realtor. Your Relocation Coordinator will review the terms of any offers you receive and offer advice on how to proceed. To maintain eligibility for all Home Sale Assistance benefits, your initial list price must not exceed 105% of the average value of the two Broker s Market Analysis provided as part of your Marketing Assistance Program. 6.3 Amended Value Sale To relieve you of the task and up front expense of closing a sale on your home, you can use what is called the Amended Value Sale process. WRRI will actually purchase the house from you and sell it to the buyer. If your sale is conducted through the Amended Value Sale process, you will not incur any direct closing costs. If you close a sale without using the Amended Value Sale process, you will be reimbursed for the closing expenses after you have paid them, and the reimbursement will be treated as taxable income to you. Tax assistance will not be provided on closing costs incurred outside the Amended Value Sale process unless approved by BP.

10 Here's how the Amended Value Sale process works: Secure a qualified offer from an outside buyer. Your Relocation Coordinator will review the offer to make sure it is a bona fide offer from a financially qualified buyer. WRRI will make the offer to match your buyer's price and amend your buyer s offer (Amended Value Sale) and close the sale with the outside purchaser. WRRI will also: Pay broker's commission that is customary for your area, and normal seller's closing costs, Pay you the equity from your house based on the Amended Value Sale price and, if the Guaranteed Offer has been extended and exceeds the Amended Value Sale price, the difference between the Amended Value Sale and the Guaranteed Offer, and If applicable, pay you a Home Sale Incentive Bonus, You will be responsible for any buyer s concessions defined and agreed to in the sale contract. BP will not reimburse for buyer s concession and any such concessions will be deducted from your equity. For an Amended Value Sale to take place, the following conditions must be met: BP-required inspections must be completed and issues resolved prior to beginning the Amended Value Sale process. The buyer's offer must be presented to WRRI before the expiration of the Guaranteed Offer period. The sales contract must not include any contingencies other than reasonable financing and/or inspection contingencies. The buyer is required to obtain his or her own financing. The sales contract must include a closing date no later than ninety (90) days from the date of the contract execution.

11 If you receive an offer and would like to amend the sale: Do not accept any offer verbally, Do not take any money from the real estate agent or prospective buyer, Do not sign or initial the purchase agreement or any documents which could be construed as an acceptance, and Call your Relocation Coordinator. Before the Amended Value Sale process begins, if a defect in construction or repair should be discovered through the initial WRRI inspections, you will be required to pay for and complete the required repairs as identified by WRRI. BP accepts the liability for any additional defects discovered through a buyer s inspection. Once the sale is amended, you will receive your home equity and, if applicable, the Sale Incentive Bonus. You will still receive your Home Sale Incentive Bonus (see section 6.5) even if, through no fault of your own, the sale price changes (higher or lower) or the sale fails to finalize. 6.4 Guaranteed Offer Although you are encouraged to try to find a buyer for your home and the Marketing Assistance Program is available to help you achieve a sale WRRI will calculate and provide you with a Guaranteed Offer for your home that you have the option of accepting immediately or within 90 days. This is called the "Guaranteed Offer." In effect, if you accept the Guaranteed Offer, or "buy-out," BP is buying your home and paying WRRI to sell your home for you and bearing all closing costs. The Guaranteed Offer is the all-cash; non-negotiable, time-limited price WRRI will offer you for your home subject to the terms of its contract and results of any inspections. The Guaranteed Offer will be open for 90 days from the date of the Offer and will not be extended under any circumstances. A general home inspection will be conducted before the Guaranteed Offer process begins. If the property age, apparent condition, location or market practices warrant, additional more specific inspections may be required before the processes begin. Any expenses you incur as a result of these inspections, for radon remediation, to remove toxic substances, to make your home marketable, to repair damages, for routine owner maintenance, to correct title deficiencies, or to dispose of excess acreage will be your personal responsibility. They will not be reimbursed directly or through loss on sale by BP or assumed by WRRI. To initiate the Guaranteed Offer Process, contact your Relocation Coordinator and make the request. When you instruct your Relocation Coordinator to initiate the Guaranteed Offer process, WRRI will arrange for two appraisals to determine the price they will offer you for your home. You will need to select two appraisers from a list of qualified appraisers for your area provided by WRRI. WRRI averages the two appraisals to determine the Guaranteed Offer. If the difference between the two values is greater than 5% of the higher, a third appraisal will be ordered. In that case, the two closest appraisals are averaged to determine the Guaranteed Offer. It is standard practice for an appraisal to include comparison to comparable homes that have sold within the previous six months, when possible. You have two options in the Guaranteed Offer process:

12 1. Accept the Guaranteed Offer any time during the 90-day period. Once you have accepted your Guaranteed Offer WRRI will pay you a portion or all of your available equity if you need it for an earnest money deposit or to close on a new home. WRRI will pay you your full equity once a Possession Date has been established. The Possession Date is the later of the Guaranteed Offer acceptance date or the date you completely vacate the property. Acceptance of the Guaranteed Offer disqualifies you for the Sale Incentive Bonus. 2. Reject the Guaranteed Offer. You accept responsibility for selling your own home. A second offer will not be extended under any circumstances. If your home is not eligible for the Guaranteed Offer or you reject it, BP will reimburse you for reasonable and customary seller's closing costs provided you sell your home within one (1) year of your relocation date as generally established by the initiation date of your relocation benefits. These include broker's commission, legal expenses, state and local transfer taxes, recording fees, escrow fees, survey and title insurance policy (to the extent customarily paid by the seller). Any expenses you incur for radon remediation, to remove toxic substances, to make your home marketable, to repair damages, for routine owner maintenance, to remediate deficiencies indicated by the appraisal(s), title deficiencies, inspections or disposal of excess acreage will be your personal responsibility. Any buyer s concessions will not be reimbursed. They will not be reimbursed directly or through loss on sale by BP. Closing costs for homes sold outside the Amended Value Sale process will be reimbursed, but may not include tax assistance. 6.5 Home Sale Incentive Bonus If a buyer pays an amount equal to 100% or more of the Guaranteed Offer, you will receive a Bonus equal to 3% of the Guaranteed Offer amount. For purposes of the sales incentive bonus provision, if a Guaranteed Offer has not been made for your home or it has been made and you reject it, the sales price will be considered to equal the Guaranteed Offer. If the buyer pays less than 100%, but not less than 95% of the Guaranteed Offer, the Home Sale Incentive Bonus will be calculated according to the following schedule: Buyer Pays Bonus % 0.5% % 1.0% % 1.5% % 2.0% % 2.5% = to or > 100% 3.0% You are not eligible to receive a Home Sale Incentive Bonus if you accept the Guaranteed Offer and sell your home to WRRI. If you sell your home for less than the Guaranteed Offer amount, your bonus potential is reduced, however, you will still be paid the difference between the sales price and the Guaranteed Offer price. If you sell your home on your own and don't use the Amended Sale option, you are still eligible for a bonus based on your sales price with no tax assistance.

13 The Home Sale Bonus Incentive is treated as taxable income and appropriate taxes will be withheld at the time of payment with no tax assistance. 6.6 Loss on Sale (LOS) Assistance The Loss on Sale Assistance provision applies to transferred exempt employees only and does not apply to experienced new hires in the lower 48 states. You may be eligible for reimbursement if you sell your home for less than your original net purchase price. To be eligible, the sales price must be less than the price you paid for your home (plus any allowable improvements) as evidenced by your home's original closing statement (called the "HUD 1") and meet one of the criteria described below. 1. If you obtain an Amended Value Sale, the full amount (up to a maximum $75,000) of your loss will be considered for reimbursement as long as you sell your home at a reasonable price (as determined and approved by BP) and sign an Amended Sales Contract with WRRI. 2. If a Guaranteed Offer has been extended and you accept it, Loss on Sale will be defined as the amount you paid initially for your home that exceeds the Guaranteed Offer. If you experience a Loss on Sale in conjunction with accepting a Guaranteed Offer, you will be reimbursed according to the following formula: 100% of the first $10,000 loss, then 70% of the amount above $10,000 For a maximum total payout for Loss on Sale of $75, If you sell your home on your own and do not use the Amended Value Sale option, the full amount (up to a maximum $75,000) of your loss will be considered for reimbursement as long as you sell your home at a reasonable price (as determined and approved by BP and your Relocation Coordinator). You must provide a copy of a Broker Market Analysis completed prior to the date of sale; a copy of the contract signed by you and your buyer; and a copy of your escrow settlement statement. Any buyer s concessions will be paid for by the employee and will not be paid for by BP. The following are the only allowable capital improvements that will be included in the LOS calculation: Major remodeling to convert non-livable space such as an attic, New construction room additions, Major kitchen and bath remodeling, and Adding a garage.

14 For new construction, only if completed within twelve (12) months of the time of closing on that home: Central air conditioning, Deck, Patio, Fireplace, Landscaping, and Fencing. Documentation is required for all capital improvements and each capital improvement must be at least $500 to be eligible. For example, the total cost of a bathroom renovation must exceed $500 but each individual component such as the vanity or tub can cost less than $500. Other improvements including, but not limited to, siding, swimming pool, Jacuzzi (hot tub), outdoor grills and other outdoor appliances/equipment, basement finishing, new roof, replacement carpeting or other flooring, appliances, security systems, window treatments (e.g., draperies, blinds, shutters), storm doors, windows, driveways and an employee's personal labor are not eligible capital improvements. 6.7 Mobile Homes You may move or sell your mobile home that is not on a permanent foundation. BP will pay the costs to move your home as long as it doesn't exceed the total expense of selling and the expense of purchasing another home, or your home does not exceed state size limitations. BP will not pay to move mobile homes in or out of Alaska. If you do sell your mobile home, BP will reimburse you for reasonable and customary sales costs. Reimbursements for selling expenses are taxable income and will be included in tax assistance calculations. WRRI will provide counsel on the sale but will not offer to purchase mobile homes. 6.8 Duplicate Housing If you are currently a homeowner and you purchase or rent a residence at the new location before selling your former residence, you may be reimbursed for the expense of maintaining your former residence provided you are actively marketing your home and participating in the Marketing Assistance Program. Reimbursement may begin 31 days after you start to incur duplicate housing expenses (determined by the closing date on your new home or, if renting, the date on your new lease agreement). You will receive duplicate housing expense reimbursement until the closing date on your former residence or three (3) months, whichever comes first. The following expenses will be reimbursed: Mortgage interest for a 1st mortgage only Real estate taxes,

15 Homeowners association dues, Homeowners insurance, including the additional fee that may be required to provide for burglary and vandalism in a vacant house, Lawn care, snow removal, pool maintenance (only for a vacant residence), and Utilities (only for a vacant residence). This provision applies and is paid upon receipt of documentation substantiating payment of each expense, such as copies of tax bills, insurance premium notices, utility bills, etc. Duplicate expense reimbursement does not begin until the 31st day since you already receive a thirty-day (30-day) temporary living allowance as part of the Lump Sum payment under this Policy. Duplicate Housing may be available to renters under certain circumstances. If approved, you are responsible for the first fifteen (15) days of duplicate housing expenses beginning the effective date of your move. Tax assistance will be provided, except for the portions related to mortgage interest and real estate taxes. 7.0 Home Purchase Assistance 7.1 Eligibility To qualify for this provision, you must meet the following criteria: You must be at least a 50% owner of your former primary residence at your former location (the U.S. location from which you departed), You must be at least a 50% owner of the property you are purchasing, You must initiate reimbursement for home purchase expenses within one (1) year of the initiation date of your relocation benefits. If you plan on using the services of a real estate agent to buy your new home, WRRI will refer you to one. As part of your relocation, the agent you work with is required to pay a referral fee to WRRI on BP's behalf. Regardless of whether you select an agent on your own or accept an agent referred by WRRI, the agent may not be an immediate relative of you or your spouse or significant other. For the purposes of this policy, an immediate relative would include a spouse, significant other, parent or grand-parent, sibling, aunt, uncle, niece or nephew. Please refer to Section 6.2 "Broker Listing Agreement Exclusions" for more information. Please Note: Real estate practices vary from state to state. Your Relocation Coordinator can advise you about local customs and help you make an informed purchase decision at a price that reflects the current market and a value not in excess of similar properties in the neighborhood. You should ask about real estate contract terms, earnest money deposit requirements, engineering and pest inspections, radon inspections and negotiation strategies. Additionally, certain types of homes are ineligible for Home Sale Assistance under BP's policy and you

16 should carefully consider this before buying a new home. If you purchase a property that is ineligible for Home Sale Assistance, you will be ineligible to receive certain benefits covered by this policy should you be relocated again with BP under a BP relocation policy. For example, your home may not be eligible for a Guaranteed Offer during a future relocation with BP. Refer to Home Sale Assistance (Section 6) for details before purchasing a home in your new location. 7.2 Covered Expenses You will be reimbursed actual, reasonable buyer home purchase costs if you were a homeowner in the departure location. Actual costs are subject to a maximum of one (1) point loan origination fee and other reasonable purchaser closing costs that include legal fees (if customary), title inspection and title insurance (lenders policy only), appraisals, escrow charges, document preparation, survey, one whole house general inspection and any lender required inspections and transfer taxes. Additional desired inspections may be covered with the Resettlement Expense Allowance. The owner's title insurance policy is not covered unless it is a customary practice for the area. Reimbursable closing costs are limited to a first mortgage you obtain for your home purchase. Loan fees and closing costs are not reimbursed for a second mortgage you may secure as part of your financing. In addition, only one set of eligible loan fees and closing costs will be reimbursed if you secure a construction loan and a permanent loan to build a new house, regardless of whether you have a single escrow closing or a dual escrow closing. You may claim Home Purchase Assistance prior to the closing by presenting a copy of your Good Faith Estimate of Closing Costs provided by your lender to your Relocation Coordinator. Upon the closing of your new home, you must send a copy of your HUD-1 Closing Statement to your Relocation Coordinator. There will be a reconciliation of the HUD-1 form and your Good Faith Estimate of Closing Costs. 7.3 Equity Loan WRRI may advance up to 90% of your available equity based on your Guaranteed Offer. Clear title must be received by WRRI and all inspections and required repairs must be completed. A copy of the sale contract must be provided to the WRRI coordinator. Normal proration for applicable taxes, interest, and assessments will be deducted in the calculation of your equity. At the end of the Guaranteed Offer period, you must repay the loan in full or accept the Guaranteed Offer. For tax compliance purposes, you must use 100% of the equity loan toward the purchase of your destination location residence. 7.4 Financing Arrangements have been made with three national mortgage lenders to provide mortgage services for employees who relocate at the request of the Company. These arrangements are for your convenience only, and their use is not required.

17 However, there are certain advantages provided to you if you obtain your loan through one of the program lenders. The program offers the following features: A toll-free telephone number, Pre-qualification estimates, Credit for spouse's employment, Variety of mortgage products, No advance application fee, Application by telephone and mail, Fast closing, and Closing costs are billed directly to the company. You may contact your choice of lender below to begin the process even before you begin the home selection process. (Note: The RDA mortgage subsidy option can only be administered through one of the financial institutions below.) Weichert Financial Services Wells Fargo Mortgage: Bank of America: Rental Assistance 8.1 Lease Cancellation Lease Cancellation expenses may also be paid. The amount is limited to the lesser of three (3) months' rent, the balance of the rent due under the terms of the lease, or the amount of any lease cancellation fee. Lease Cancellation will be paid on a reimbursement basis on presentation of documentation to support your claim. Tax assistance is provided for Federal, State and Local income taxes and FICA. 8.2 Renting a New Home Your Relocation Coordinator will refer you to a destination consultant for your new location, who will provide you with additional details about the service. You should include a "transfer clause" in your lease. This will allow you to cancel your lease with minimum cost if you transfer again. Here is a sample clause: "If the Lessee is transferred by his/her employer, lessor agrees to cancel this lease after receiving sixty (60) days written notice."

18 9.0 Resettlement Expense Allowance The Resettlement Expense Allowance is a non-accountable sum to defray expenses not covered elsewhere by, or that exceed, the provisions of this policy. The Resettlement Expense Allowance is not a bonus and should not be viewed as one. Expect to use all of these funds toward your relocation. For homeowners, the allowance is 10% of your annual salary on the effective date of your relocation as indicated on your Employee Relocation Authorization Form, with a minimum of $4,500 and a maximum of $10,000. For renters, the allowance is 10% of your annual salary on the effective date of your relocation as indicated on your Employee Relocation Authorization Form, with a minimum $2,500 and the maximum is $5,000. Tax assistance is provided for Federal, State and Local income taxes and FICA Household Goods Shipment Your Relocation Coordinator will coordinate the physical movement of your household goods. To assure enough time to make arrangements, contact your Relocation Coordinator in the early planning stages of your move. Your Relocation Coordinator will provide the guidelines for the shipment of your household goods, personal effects and automobiles. Your Relocation Coordinator will arrange for the shipper to contact you to estimate packing requirements and to plan times for packing, pickup and delivery to your new home and explain the claims process. BP will pay to ship one (1) car if the move is less than 400 miles; two (2) cars if the distance is over 400 miles. (Employees moving in or out of Alaska may separately ship one 16-foot or less recreational boat or vehicle). Any cars shipped must meet eligibility requirements. Your Relocation Coordinator can provide details. Charges for shipping household pets, additional insurance on items of extraordinary value or any out-of-policy expenses are your responsibility and covered by your Resettlement Expense Allowance. Employees moving in or out of Alaska are entitled to receive a pre-shipment via air up to 500 pounds. This shipment is provided to allow for the basic living necessities while waiting for the household goods shipment to arrive. Your Relocation Coordinator will provide specific details about shipping arrangements to your new work location and on the shipment of your household goods, personal effects and automobiles. The following expenses to move normal household goods from your old location to your new location will be paid: Packing, Loading, Transportation, Unloading and initial placement of furniture, Unpacking,

19 Disconnection and reconnection of appliances, One debris pick-up within 45 days of delivery for any crates and cartons you unpack (this does not include personal trash), Your household goods will be insured up to a maximum of $200,000 for possessions that are being transported to the new location or held in storage, and Should you need additional insurance coverage, you may be required to substantiate your estimate by providing a copy of your Homeowner's Personal Contents policy page indicating your coverage amount and/or other documentation as determined by BP to your Weichert Coordinator prior to an increase in your insurance coverage beyond $200,000. Storage up to 60 days when you are required to vacate your home at the old location before you are able to occupy a home at the new location. An extra pick-up or delivery stop is permissible if approved in advance by your Relocation Coordinator and provided the stop is en route to your new location. The maximum reimbursement for an extra stop is $100. Pick-up and delivery dates for household goods are scheduled only Monday through Friday. If you are unsure about whether or not some of your items are considered normal household goods, your Relocation Coordinator can provide clarification. Non-covered Moving Expenses. Transportation of items not covered under this policy include (but are not limited to): Building supplies such as lumber, wall board, sand, cement, bricks, insulation, shingles, fences, Boats or canoes, 14 feet and over or motorized over 10 horsepower except in Alaska, Coal or firewood, Coin collections, currency, jewelry, furs, securities, wine, Collectibles, Precious metals or stones, Important documents, Stamp collections, Frozen foods, Perishables, Hazardous material per the carrier s legal guidance, Livestock, Doghouses over 100 pounds, tree houses, dog runs, Storage sheds with panels over 6 feet x 8 feet, Trailers for camping and utility, Free standing hot tubs,

20 Above ground swimming pools, Yard ornaments including concrete furniture, statues, gazebos, wishing wells, and Any item too large for two people to handle safely. Preparing Oil/Gas Equipment That Ships with Your Household Goods In support of BP s Corporate focus on safety, transferring employees are required to ensure their oil/gas powered equipment such as motorcycles, small recreational vehicles, riding lawn mowers, push lawn mowers, yard equipment, chain saws, weed eaters, etc., are properly prepared to ship with their household goods. Shipment of small recreational vehicles and motorcycles are permitted only if they fit on the household goods van. Proper shipment preparation requires the oil and gas to be drained from the equipment by a certified professional company. For help finding a company ask your equipment manufacturer, dealership, or repair company for recommendations. Equipment not properly drained and ready to ship on packing day must be shipped as a second shipment at the relocating employee s expense and responsibility. Required Actions hours before household goods pack day: Oil/gas drained and equipment prepared Make a copy of the receipt to give the driver on pack day It is the responsibility of your household goods provider to validate the equipment has been properly drained and prepared and to obtain a copy of the receipt for their records and they have the right to refuse hauling any items without proper documentation. If you have any questions, please contact your household goods move coordinator or your WRRI Relocation Coordinator. If you need a resource to help you prepare your oil/gas equipment: Executive Movers Service (EMS), telephone *Hazardous Materials. Shipping of the following materials is prohibited by federal law: Aerosol cans, ammunition, combustibles, corrosives, explosives, flammable gases and liquids (fuel should be removed from power equipment), matches, open cleaning supplies and paints. Other items might be considered hazardous; your carrier can provide you with a current list. If the shipment of plants is permissible (based on state laws), there will be no guarantee or reimbursement on any loss. Non-Covered Services Related to Moving. The following services are not payable under this policy: Appraisals of antiques and high value items, Disassembly and/or reassembly of athletic/health equipment, playhouses, pool tables, portable hot tubs, above ground swimming pool, swing sets, satellite dishes, storage sheds, trampolines, Grandfather clock servicing, Removal and/or reinstallation of antenna, Removal and/or hanging of curtains and drapes,

21 Removal of permanently attached objects such as carpeting, ceiling fans, drapery fixtures or rods, electrical fixtures, mirrors or pictures, plumbing fixtures, attached shelving, Removal of goods from attics or crawl spaces not accessible by permanent stairwell or other easy access, and Electrical or plumbing services over and above normal appliance hook-up (i.e., installing a water line, gas line or upgrading an outlet). Moving twice due to temporary living. You may choose one of the following options if you have the need to move into temporary living quarters: You will be reimbursed if you move yourself from your old location to temporary living quarters at the new location, and then to permanent quarters at the new location if you rent unfurnished quarters at the new location prior to the availability of your permanent residence. You may have the van line move a partial shipment into the temporary quarters and the remainder of your shipment into storage, providing that the shipments are delivered consecutively. The van line will then move your household goods from both the temporary living quarters and the storage facility into your permanent residence when appropriate. Moving yourself. If you use a trailer attached to your own vehicle to transport all or part of your personal effects, you will be reimbursed for the trailer rental expense plus four (4) cents per mile for pulling the trailer in addition to the company's normal mileage rate for the use of your own vehicle. Mobile house trailer. A mobile house trailer is defined as a regular, single body structure with permanent wheels attached. The wheels (tires) may be removed when the trailer is stationary. If your principal residence is a mobile house trailer, certain expenses related to moving it are covered, however, if the cost of moving the trailer exceeds its value, your Consultant will discuss other options with you. If your mobile house trailer is to be moved, the following will be paid for: Packing and unpacking normal household furnishing and personal effects, and insurance for loss or damage to them while in transit and storage, Removal and reinstallation of blocks, anchors and existing under skirting, Moving non-concrete steps and disassemble outside buildings, Disconnecting and reconnecting gas, electricity and water to existing hook-ups, Attaching tires for the move and removing them for set-up in the new location, State permits, tolls and escort fees, and Storage at point of origin or destination. The cost of tires and tubes, or other accessories not listed, will not be paid under this policy. If you move your trailer with your own vehicle, you will be reimbursed at the rate of twelve cents per mile for the actual pulling of the trailer, in addition to the company's normal mileage rate for the use of your own vehicle. If you do