Form of the Executive Annual Incentive Award Agreement



 Exhibit 10.2 
 W&T OFFSHORE, INC. 
 AMENDED AND RESTATED INCENTIVE COMPENSATION PLAN

 Executive Annual Incentive Award Agreement 
 For Fiscal Year 2011 
 This potential Annual Incentive Award (the
“Award”) is granted on August 5, 2011 (the “Award Date”), by W&T Offshore, Inc., a Texas corporation (the “Company”) to you (“Awardee” or
“you”). 
 WHEREAS, the Company in order to induce you to enter into and to continue and dedicate
service to the Company and to materially contribute to the success of the Company agrees to grant you this Award; 

WHEREAS, this Award is granted to you pursuant to the W&T Offshore, Inc. Amended and Restated Incentive Compensation Plan, as
may be amended from time to time (the “Plan”), and the following terms and conditions of this agreement (the “Agreement”) for the Company’s 2011 fiscal year; 

WHEREAS, a copy of the Plan has been furnished to you and shall be deemed a part of this Agreement as if fully set forth herein;
and 
 WHEREAS, you desire to accept the Award made pursuant to this Agreement. 

NOW, THEREFORE, in consideration of and mutual covenants set forth herein and for other valuable consideration hereinafter set
forth, the parties agree as follows: 
 1. Terms and Conditions. The Award is subject to all the terms and
conditions of the Plan. All capitalized terms not defined in this Agreement shall have the meaning stated in the Plan. If there is any inconsistency between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control
unless this Agreement expressly states that an exception to the Plan is being made. 
 2. Definitions. For
purposes of this Agreement, the following terms shall have the meanings stated below. 
 (a) “Base
Salary” means the base salary you received during the Performance Period, (i) including any amounts deferred pursuant to an election under any 401(k) plan, pre-tax premium plan, deferred compensation plan, or flexible spending
account sponsored by the Company or any Subsidiary, and any overtime paid to you as an offshore employee required by your standard work schedule, but (ii) excluding any incentive compensation, employee benefit, or other benefit paid or
provided under any incentive, bonus or employee benefit plan sponsored by the Company or any Subsidiary, all overtime paid other than as specified in (i) above and/or any excellence award, gains upon stock option exercises, restricted stock
grants or vesting, moving or travel expense reimbursement, sign on bonus, imputed income, or tax gross-ups, without regard to whether the payment or gain is taxable income to you. 







 (b) “Disability” means your permanent disability as defined in your
Individual Agreement. In the event that there is no existing written Individual Agreement between you and the Company or if any such agreement does not define Disability, the term “Disability” shall mean: (i) a physical
or mental impairment of sufficient severity that, in the opinion of the Company, (A) you are unable to continue performing the duties assigned to you prior to such impairment or (B) your condition entitles you to disability benefits under
any insurance or employee benefit plan of the Company or its Subsidiaries, and (ii) the impairment or condition is cited by the Company as the reason for your termination; provided, however, that in all cases, the term Disability shall
be applied and interpreted in compliance with section 409A of the Code and the regulations thereunder. 
 (c)
“Individual Agreement” means any employment or severance agreement, if any, between you and the Company or any Subsidiary. 
 (d) “Performance Goals” means the performance criteria established by the Committee pursuant to Section 8 of the Plan and set forth in Appendix A attached hereto. 

(e) “Performance Period” means the Company’s complete fiscal year ending December 31, 2011. 

(f) “Total Performance Score” means the aggregate number of points you are assigned as a result of the
Committee’s review, analysis and certification of the achievement of the applicable Performance Goals set forth in Appendix A attached hereto for the Performance Period. 
 3. Effect of Award Agreement. By signing this Agreement, you (a) acknowledge receipt of and represent that you have read and are familiar with this Agreement; (b) accept this Award
subject to all of the terms and conditions of the Agreement and the Plan; and (c) agree to accept as binding, conclusive and final all decisions or interpretations of the Committee. 

4. Target Award. You are hereby awarded a target Award of
            % of your Base Salary (referred to herein as your “Target Award”) subject to the terms and conditions set forth in the Plan and this Agreement. Subject
to Sections 5 and 8 below, your Total Performance Score will determine whether you may receive an Award less than, equal to, or greater than your Target Award. 
 5. Minimum and Maximum Performance Levels. As a condition of payment of the Award, your Total Performance Score must reach 40 or above; Total Performance Scores of 0 through 39.99 (Below
Threshold) shall not result in the payment of any portion of your Award. The maximum Total Performance Score you may be assigned shall not exceed 200, nor may the payout of your Award exceed 200% of your Target Award amount. 

6. Award Calculation. Your Award will be calculated as follows: 

(a) Based on your Total Performance Score, the payout amount of your Award will be determined using the chart below: 

  
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	 Performance Level
	  	Total
Performance
Score	  	Percentage of Target Award
Paid to You
	 Maximum
	  	200	  	200%
	 Target
	  	100	  	100%
	 Threshold
	  	40	  	40%
	 Below Threshold
	  	0	  	0%

 (b) General Terms. 

(i) Payout multiples between the numbers 40 and 200 on the chart in Section 6(a) above will be calculated using
straight-line interpolation. 
 (ii) Any Award that is earned will be paid in cash as soon as
practicable after the Committee has certified the applicable Performance Goals were achieved for the Performance Period, but in no event later than the seventy-fifth (75th) day following the date the Performance Period ends. 

(iii) You must be employed or newly eligible by September 30 within the Performance Period in order to be eligible to
participate in the Plan for the Performance Period. 
 7. Effect of Termination of Employment. Notwithstanding any
provisions to the contrary below in the remainder of this Section 7, in the event of any inconsistency between this Section 7 and any written Individual Agreement you may have, the terms of such an Individual Agreement will control In the
event you do not have an Individual Agreement or your Individual Agreement does not address the treatment of Annual Incentive Awards under the Plan, if your employment is terminated at any time on or after the Award Date and before the Award is
paid, your Award will be treated as follows: 
 (a) Death or Disability. If your termination
of employment is a result of your death or Disability, as determined by the Company in its sole and complete discretion, you will receive a pro-rata Award, if an Award is payable for the Performance Period, calculated based on the number of days
during the Performance Period that you were employed with the Company divided by the number of days in the Performance Period (the “Pro-Rata Award”). You, your beneficiaries, or your estate, as applicable, will be paid in
cash as soon as practicable after the date of your termination of employment following the Committee’s review, analysis and certification of all applicable items necessary to calculate your pro-rata Award, but in no event later than the
seventy-fifth (75th) day following the date of your
termination of employment; provided, however, that you must have been employed with the Company for a minimum of 90 days during the Performance Period in order to be eligible for a Pro-Rata Award described in this Section 7(a).

 (b) Terminations other than Death or Disability. Unless your termination of employment is a result of your
death or Disability, you must be employed by the Company or a Subsidiary on the date Awards are paid in order to be eligible to receive payment of an Award. You have no vested interest to the Award prior to the Award actually being paid to you by
the 

  
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Company. If your employment with the Company or a Subsidiary terminates for any reason other than your death or Disability, whether your termination is voluntary or involuntary, with or without
cause, you will not be eligible to receive payment of any Award for the Performance Period. 
 8. Right of the
Committee. The Committee has the right to reduce or eliminate your Award for any reason regardless of the amount of your Total Performance Score achieved. 
 9. Right of the Company and Subsidiaries to Terminate Services. Nothing in this Agreement confers upon you the right to continue in the employ of the Company or any Subsidiary, or interfere
in any way with the rights of the Company or any Subsidiary to terminate your employment at any time, with or without cause. 

10. Withholding Taxes. The Company may require you to pay to the Company (or the Company’s Subsidiary if you are an
employee of a Subsidiary of the Company), an amount the Company deems necessary to satisfy its (or its Subsidiary’s) current or future obligation to withhold federal, state or local income or other taxes that you incur as a result of the Award.
With respect to any such required tax withholding, the Company shall withhold from the payment to be issued to you under this Agreement the amount necessary to satisfy the Company’s obligation to withhold taxes. 

11. Furnish Information. You agree to furnish to the Company all information requested by the Company to enable it to
comply with any reporting or other requirements imposed upon the Company by or under any applicable statute or regulation. 

12. No Liability for Good Faith Determinations. The Company, the Committee and the members of the Board shall not be liable
for any act, omission or determination taken or made in good faith with respect to this Agreement or the Award granted hereunder. 
 13. Execution of Receipts and Releases. Any payment of cash to you, or to your legal representative, heir, legatee or distributee, in accordance with the provisions hereof, shall, to the
extent thereof, be in full satisfaction of all claims of such Persons hereunder. The Company may require you or your legal representative, heir, legatee or distributee, as a condition precedent to such payment, to execute a release and receipt
therefor in such form as the Company shall determine. 
 14. Notice. All notices required or permitted under this
Agreement must be in writing and personally delivered or sent by mail and shall be deemed to be delivered on the date on which it is actually received by the person to whom it is properly addressed or if earlier the date it is sent via certified
United States mail. 
 15. Waiver of Notice. Any person entitled to notice hereunder may waive such notice in
writing. 
 16. Information Confidential. As partial consideration for the granting of the Award hereunder, you
hereby agree to keep confidential all information and knowledge, except that which has been disclosed in any public filings required by law, that you have relating to the terms and conditions of this Agreement; provided, however, that
such information may be 

  
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disclosed as required by law and may be given in confidence to your spouse and tax and financial advisors. In the event any breach of this promise comes to the attention of the Company, it shall
take into consideration that breach in determining whether to recommend the grant of any future similar award to you, as a factor weighing against the advisability of granting any such future award to you. 

17. Nontransferability. Neither this Agreement nor this Award subject to this Agreement shall be subject in any manner to
anticipation, alienation, sale, exchange, transfer, assignment, pledge, encumbrance or garnishment by your creditors or your beneficiary, except transfer by will or by the laws of descent and distribution. All rights with respect to the Agreement
shall be exercisable during your lifetime only by yourself or, if necessary, your guardian or legal representative. 
 18.
Successors. This Agreement shall be binding upon you, your legal representatives, heirs, legatees and distributees, and upon the Company, its successors and assigns. 

19. Severability. If any provision of this Agreement is held to be illegal or invalid for any reason, the illegality or
invalidity shall not affect the remaining provisions hereof, but such provision shall be fully severable and this Agreement shall be construed and enforced as if the illegal or invalid provision had never been included herein. 

20. Amendment. The Committee may amend this Agreement at any time; provided, however, that no such amendment
may adversely affect your rights under this Agreement without your consent, except to the extent such amendment is reasonably determined by the Committee, in its sole discretion, to be necessary to comply with applicable law or to prevent a
detrimental accounting impact. No amendment or addition to this Agreement shall be effective unless in writing. 
 21.
Headings. The titles and headings of Sections are included for convenience of reference only and are not to be considered in construction of the provisions hereof. 
 22. Governing Law. All questions arising with respect to the provisions of this Agreement shall be determined by application of the laws of Texas, without giving any effect to any conflict
of law provisions thereof, except to the extent Texas state law is preempted by federal law. 
 23. Consent to Texas
Jurisdiction and Venue. You hereby consent and agree that state courts located in Harris County, Texas and the United States District Court for the Southern District of Texas each shall have personal jurisdiction and proper venue with respect to
any dispute between you and the Company arising in connection with the Award or this Agreement. In any dispute with the Company, you will not raise, and you hereby expressly waive, any objection or defense to any such jurisdiction as an inconvenient
forum. 
 24. The Plan. This Agreement is subject to all the terms, conditions, limitations and restrictions
contained in the Plan. 
 [Signature Page to Follow] 

  
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 You must sign this Agreement and return it to W&T Offshore, Inc.’s Manager of Human Resources on
or before August 15, 2011, or the potential Award will be forfeited. 
  

	
	  

	Awardee’s Social Security Number
	
	  

	Awardee Signature
	
	  

	Date
	
	  

	President
	
	  

	Date: August 5, 2011


  
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 Appendix A 
 Performance Goals 
 The Performance Goals for your 2011 Annual
Incentive Award shall be comprised of two equal portions: the “Business Criteria” and the “Company and Individual Performance Criteria.” The Business Criteria will comprise 50% of your potential Award, and the Company and
Individual Performance Criteria will comprise the remaining 50% of your potential Award. 
 Your Total Performance Score will be
calculated using the criteria and the scales below. The Committee shall review, analyze and certify the achievement of each of the criterion below, either for the Company or yourself, as applicable, and shall determine your Total Performance Score
according to the aggregate number of points you receive from each of the scales below. 
 Part 1. Business Criteria  

 

					
	 Target Criteria
	  	Percentage of
Weight Relative to
your Total Potential
Award	 	Points
	 Production Growth: equivalent production at least 105 Bcfe for YE 2011
	  	20%	 	0-40
	 Reserve Growth: Increase in reserves of 133 Bcfe over 2010 YE reserves (485.4 Bcfe), excluding 2011 YE
production.
	  	20%	 	0-40
	 F&D Costs: not to exceed $3.50 per Mcfe at year end 2011
	  	5%	 	0-10
	 LOE & G&A: 2011 LOE and G&A per Mcfe of production no more than a 7% increase in LOE and G&A per Mcfe of
production, measured against 2010 LOE and G&A per Mcfe of production (excluding hurricane expenses and insurance credits for such expenses)
	  	5%	 	0-10
	 Total
	  	50%	 	100


  
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 The number of points you receive on each individual scale shall be determined as follows, using a
straight-line interpolation: 
 (a) Production Growth – Year end Production for 2011 

 

					
	 Performance Level
	  	Points	 
	 Maximum: greater than 125 Bcfe
	  	 	40	  
	 Target: 105 Bcfe in 2011
	  	 	20	  
	 Threshold: 96 Bcfe in 2011
	  	 	10	  
	 Below Threshold
	  	 	0	  

 (b) Reserve Growth – In 2011 increase in reserves over 2010 YE reserves (485.4 Bcfe), excluding
reductions from 2011 YE production. 
  

			
	 Performance Level
	  	Points
	 Maximum: increase in reserves greater than 150 Bcfe over 2010 YE reserves
	  	40
	 Target: increase in reserves of 133 Bcfe over 2010 YE reserves
	  	20
	 Threshold: increase in reserves of 116 Bcfe over 2010 YE reserves
	  	10
	 Below Threshold
	  	0

 (c) F&D Costs: not to exceed a specified dollar amount per Mcfe at year end 2011. “F&D”
is defined as the total capital dollars spent in 2011 plus changes in ARO; divided by proved reserves added for the year 2011. 
  

			
	 Performance Level
	  	Points
	 Maximum: F&D costs not to exceed $3.00 per Mcfe at year end 2011
	  	10
	 Target: F&D costs not to exceed $3.50 per Mcfe at year end 2011
	  	5
	 Threshold: not to exceed $3.61 per Mcfe at year end 2011
	  	2.5
	 Below Threshold
	  	0


  
 A-8









 (d) Combined LOE & G&A: 2011 LOE and G&A per Mcfe of production no more
than a percentage increase in LOE and G&A per Mcfe of production, measured against 2010 LOE and G&A per Mcfe of production (both measurements excluding hurricane expenses and insurance credits for such expenses). 

 

			
	 Performance Level
	  	Points
	 Maximum: less than a 3% increase in LOE and G&A per Mcfe of production, measured against 2010 LOE and G&A per Mcfe of
production
	  	10
	 Target: no more than a 7% increase in LOE and G&A per Mcfe of production, measured against 2010 LOE and G&A per Mcfe of
production
	  	5
	 Threshold: no more than a 9% increase in LOE and G&A per Mcfe of production, measured against 2010 LOE and G&A per Mcfe
of production
	  	2.5
	 Below Threshold
	  	0

 Part 2. Company and Individual Performance Criteria 

 

					
	 Criteria
	  	Percentage of
Weight Relative to
your Total Potential
Award	 	Points
	 Overall Company Performance Conditions
	  		 	
	 2011 Net Earnings Per share (diluted)
	  	20%	 	0-40
	 2011 Adjusted EBITDA Margin Percentage
	  	20%	 	0-40
		  		 	
		  		 	
		  		 	
	 Individual Performance Conditions
	  		 	
	 Individual Performance as assessed by management for year 2011
	  	10%	 	0-20
		  		 	
		  		 	
		  		 	
	 Total for Overall Company Performance Conditions and Individual Performance Conditions Combined
	  	50%	 	100


  
 A-9









 The number of points you receive on each individual scale shall be determined as follows, on straight-line
interpolation: 
 (a) Net Earnings Per Share (diluted), being “EPS” for YE2011 (excluding dividends paid in 2011)

  

			
	 Performance Level
	  	Points
	 Maximum: EPS greater than $1.30/share
	  	40
	 Target: EPS greater than $1.00/share
	  	20
	 Threshold: EPS greater than $.85/share
	  	10
	 Below Threshold
	  	0

 (b) Adjusted EBITDA Margin Percentage YE 2011 

 

			
	 Performance Level
	  	Points
	 Maximum: Adjusted EBITDA Margin percentage greater than 70% YE 2011
	  	40
	 Target: Adjusted EBITDA Margin percentage greater than 60% YE 2011
	  	20
	 Threshold: Adjusted EBITDA Margin greater than 55% YE 2011
	  	10
	 Below Threshold
	  	0

 (c) Individual Performance in 2011, assessed by management 

 

			
	 Performance Level
	  	Points
	 Maximum – Far Exceeded Expectations
	  	20
	 Target – Exceeded Expectations
	  	10
	 Threshold – Met expectations
	  	5
	 Below Threshold
	  	0


  
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