EXHIBIT 10.2

SUMMARY OF EXECUTIVE COMPENSATION  ARRANGEMENTS FOR NAMED EXECUTIVE OFFICERS FOR
2005

Annual Cash Compensation
------------------------

Base Salary -

The  base  salaries  for  the  executive  officers  of  KCS  Energy,  Inc.  (the
"Corporation") are established after a review and comparison by the Compensation
Committee of the salaries  paid to executive  officers of an industry peer group
of small cap independent  oil and gas  exploration and production  companies and
published survey data. Other factors considered include individual  performance,
level of  responsibility  and the  Corporation's  overall  annual  salary budget
guidelines. Set forth below are the base salaries of the Chief Executive Officer
and each of the four other most highly compensated  executive officers and their
annual base salaries effective February 1, 2005.

              Officer                 2005 Base Salary
------------------------------------------------------

James Christmas
Chairman, Chief Executive Officer         $400,000

William Hahne
President, Chief Operating Officer        $312,000

Harry Stout
Sr. VP, Marketing/Risk Management         $216,000

Joseph Leary
Vice President and
Chief Financial Officer                   $190,000

Frederick Dwyer
Vice President, Controller/Secretary      $145,000

Annual Performance Incentive Awards -

Executive  officers are also  eligible to receive  annual cash bonuses under the
Corporation's Annual Performance  Incentive Award Plan. Please read Exhibit 10.1
to the  Corporation's  Form 10-Q for the  quarter  ended  March  31,  2005 for a
written description of the plan, including the performance objectives for 2005.

Long-Term Equity-Based Incentives
---------------------------------

Long-term  incentive awards for each executive  officer  generally  consist of a
grant  comprised of stock options and  restricted  stock awards.  The purpose of
these  awards  is  to  align  the  interests  of  executive  officers  with  the
Corporation's  shareholders  by directly  linking a significant  portion of each
executive's  total  compensation to the continued  growth of the Corporation and
appreciation of its common stock.

The stock  options and  restricted  stock  awards are made under the KCS Energy,
Inc.  2001  Employee  and  Director  Stock Plan (the "2001  Plan").  Please read
Exhibit (10)iii to the  Corporation's  Annual Report on Form 10-K filed on April
2, 2001 for the terms and  conditions  of the 2001  Plan.  As part of their 2005
compensation package, Messrs. Christmas,  Hahne, Stout, Leary and Dwyer received
restricted stock awards of 25,000,  16,600, 8,600, 8,600 and 3,500 respectively,
in January 2005. Also in January 2005, Messrs.  Christmas,  Hahne,  Stout, Leary
and Dwyer received stock options exercisable into 25,050,  16,500,  5,100, 4,000
and 3,500  shares of common  stock,  respectively.  The  executive  officers may
receive additional stock options in 2005 but the amount, if any, of such options
has not been determined.  Stock options  generally vest over a three-year period
in three equal annual  installments  on each  anniversary  of the grant date and
have a ten-year  term.  All options are granted with an exercise  price equal to
the fair market  value of the  Corporation's  common stock on the date of grant.
Restricted  stock  awards,  which are granted  based on the market  price of the
corporation's common stock on the date of grant generally vest three years after
the date of grant,  but in some instances are subject to accelerated  vesting if
established  performance measures are achieved.  Please read Exhibits 10.6, 10.8
and 10.9 to the Corporation's Quarterly Report on Form 10-Q filed on November 9,
2004 for the general  terms and  conditions  of the stock option and  restricted
stock awards.