EXHIBIT 10.2

 

SUMMARY OF 2008 CASH INCENTIVE AWARDS

 

The 2008 Awards are based on the following threshold, target and maximum
performance goals for fiscal year 2008 and the weighting set forth next to the
goals (Cano notes that these goals are part of Cano’s incentive program and do
not correspond to any financial or performance guidance that Cano has provided
or will provide and should not be considered as statements of Cano’s
expectations or estimates):

 

 

 

Performance Goals

 

 

 

Performance Measure

 

Threshold

 

Target

 

Maximum

 

Weighting

 

Company Goals

 

 

 

 

 

 

 

 

 

Production*

 

1,976 BOEPD

 

2,470 BOEPD

 

3,211 BOEPD

 

35

%

Proved Developed Producing Reserves

 

12,683,000 BOE

 

14,171,000 BOE

 

18,422,000 BOE

 

20

%

EBITDA

 

$

17,075,000

 

$

21,344,000

 

$

27,474,200

 

10

%

Finding & Development Costs

 

$

10.50 per BOE

 

$

8.75 per BOE

 

$

6.13 per BOE

 

10

%

Committee Discretionary Award

 

 

 

 

 

 

 

25

%

 

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*Average daily production for fiscal year 2008.

 

Cano calculates EBITDA as earnings before interest, taxes, depreciation and
amortization.

 

The 2008 Awards potential payout levels for each Named Executive Officer are set
forth below:

 

 

 

 

 

 

 

2008 Bonus Payout

 

 

 

Base Salary
(1/1/2008)

 

Target Bonus
(% of Salary)

 

Threshold
(50% of
Target)

 

Target

 

Maximum
(150% of
Target)

 

S. Jeffrey Johnson

 

$

509,480

 

75

%

$

191,000

 

$

382,000

 

$

573,000

 

Morris B. “Sam” Smith

 

$

300,000

 

75

%

$

112,500

 

$

225,000

 

$

338,000

 

Patrick McKinney

 

$

250,000

 

75

%

$

93,750

 

$

187,500

 

$

281,000

 

Michael J. Ricketts

 

$

187,000

 

50

%

$

47,000

 

$

94,000

 

$

141,000

 

 

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