Exhibit 10.34

 

SECOND AMENDMENT TO THE
WESTERN GAS RESOURCES, INC.
1999 STOCK OPTION PLAN

 

This Second Amendment to the Western Gas Resources, Inc. 1999 Stock Option Plan
is made this 30th day of June, 2002, effective June 30, 2002.

 

RECITALS

 

A.                                   The Board of Directors adopted the Western
Gas Resources, Inc. 1999 Stock Option Plan (the “Plan”).

 

B.                                     Section 4(d) of the Plan authorizes the
Board of Directors to amend the Plan.

 

C.                                     The Board of Directors desires to amend
the Plan to make the modifications set forth herein.

 

NOW, THEREFORE, the Western Gas Resources, Inc. 1999 Stock Option Plan is
amended as follows:

 

1.                                       Section 9.e. is hereby deleted in its
entirety and replaced with the following:

 

e.                                       Options may be exercised, in whole or
in part, by the surrender (or delivery) to the Company of previously acquired
shares of Company common stock held for greater than six months.  This method of
exercise is to include the constructive exchange (or surrendering) of Company
stock already owned and held for greater than six months (“Payment Shares”) in
payment for the shares to be received under the option exercise in lieu of
actually tendering such Company stock to the Company. If the Payment Shares are
held by a registered securities broker for the optionee in “street name,” the
optionee will provide the Company with a notarized statement attesting to the
number of shares owned that are intended to serve as Payment Shares. If the
Company stock certificates are actually held by the optionee, he shall provide
the Company with their certificate numbers. Upon receipt of a notarized
statement regarding ownership of the Payment Shares, or upon confirmation of
ownership of the Payment Shares by reference to Company records, the Company
shall treat the Payment Shares as being constructively exchanged. The Company
shall then issue to the employee a certificate for a net number of shares: the
number of shares subject to the option exercise less the number of Payment
Shares. The exchange price for the Payment Shares under the respective option
exercise will be the Fair Market Value of the Company common stock as determined
in 2.g. above as of the effective date of the exchange.

 

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2.                                       Except as hereby amended, the Plan is
hereby ratified and confirmed by the Board of Directors and its provisions shall
remain in full force and effect.

 

ADOPTED by the Board of Directors of Western Gas Resources, Inc. effective as of
the date first set forth above.

 

 

WESTERN GAS RESOURCES, INC.

 

 

 

 

 

By:

/s/ John C. Walter

 

 

 

 

Title:

Executive Vice President

 

 

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