Document:

Exhibit 10.2

 

WESTERN GAS RESOURCES,
INC.

2002 NON-EMPLOYEE
DIRECTORS’ STOCK OPTION AGREEMENT

 

 

THIS AGREEMENT, made as of May 19, 2003, by and
between Western Gas Resources, Inc. (hereinafter called the “Corporation”), a
Delaware corporation, and Brion Wise, a non-employee director of the
Corporation (hereinafter called the “Optionee”).

 

RECITALS:

 

A.            The Optionee is
eligible as a non-employee director of the Corporation to participate in the
Western Gas Resources, Inc. 2002 Non-Employee Director’s Stock Option Plan (the
“Plan”).

 

B.            The Board of
Directors of the Corporation considers it desirable and in the Corporation’s
best interests that the Optionee be given an opportunity to purchase shares of
its Common Stock in furtherance of the Plan to provide incentive for the
Optionee to remain as a director of the Company and to promote the success of
the Corporation.

 

NOW THEREFORE, in consideration of the premises, it is
agreed as follows:

 

1.  Grant of
Option.  The Corporation hereby
grants as of May 19, 2003 (the “Grant Date”) to the Optionee the right,
privilege and option to purchase 2,000 shares of the Common Stock par value
$0.10 (the “Common Stock”) of the Corporation, at a purchase price of Thirty
Eight Dollars and Seventy Six 100ths ($38.76) per share in the manner and
subject to the conditions hereafter provided. 
Said purchase price is not less than the Fair Market Value (as that term
is defined in the Plan) of the shares of Common Stock of the Corporation at the
time this option was granted.

 

2.  Period of
Exercise of Option.  This Option may
be exercised in whole or in part, or in installments, from time to time, with
respect to the shares covered hereby, in the amounts and at the times specified
below.  The Option or any portion
thereof, once it becomes exercisable as specified below, shall remain
exercisable until it shall expire in accordance with the provisions of this
Agreement.

 

(a) 
Notwithstanding anything herein to the contrary, no Option or portion
thereof granted under this Agreement may be exercised after the earlier of (i)
five (5) years after the date the Optionee has the right to exercise such
Option or portion thereof, in accordance with paragraph 2(b) below; or (ii) ten
(10) years after the Option is granted.

 

(b)  Except as
expressly provided in Section 2(e), below, an Optionee shall become entitled to
exercise that portion of the Option and to purchase the percentage of the
Common stock subject to the Option in accordance with the following schedule:

 

(1)           Commencing
one (1) year from the Grant Date, the Optionee shall have the right to exercise
thirty-three and one-third percent (33-1.3%) of the Option and to purchase an 

 

 

 

additional thirty-three and one-third percent (33-1/3%) subject to the
Option.

 

(2)           Commencing
two (2) years from the Grant Date, the Optionee shall have the right to
exercise thirty-three and one-third percent (33-1.3%) of the Option and to
purchase an additional thirty-three and one-third percent (33-1/3%) subject to
the Option.

 

(3)           Commencing
three (3) years from the Grant Date, the Optionee shall have the right to
exercise thirty-three and one-third percent (33-1.3%) of the Option and to
purchase an additional thirty-three and one-third percent (33-1/3%) subject to
the Option.

 

The Optionee’s right to purchase Shares subject to the
Option shall be cumulative, so that three (3) years from the Grant Date, the
Optionee shall be entitled to exercise one hundred percent (100%) of the Option
and to purchase all of the Common Stock subject to the Option, subject to all
of the provisions of this Agreements.

 

(c)           Except
as provided in Sections 2(d) and 2(e), an Optionee may exercise an Option only
if, at the time such Option is exercised, such Optionee is a director of, and
has continuously since the grant of the Option, been a director of the
Corporation or any subsidiary, parent, or predecessor of the Corporation.

 

(d)           If
an Optionee ceases to be a director for any reason other than (i) his or her
death or disability; or (ii) his or her discharge for dishonesty or commission
of a crime, the Optionee may, within three (3) months thereafter, and subject
to provisions of Sections 2(a), (b) and (c), exercise the Option to the extent
that the Option was exercisable as of the date of the Optionee ceased to be a
director. All unexercised Options, or portions thereof, shall terminate, be
forfeited, and shall lapse upon expiration of said three (3) month period, or
immediately if the Optionee ceases to be a director of the Corporation for any
of the reasons set forth in (ii), above.

 

(e)           If
an Optionee dies or becomes disabled while he is a director of the Corporation or
ceases to be a director as a result of disability, all of the Options granted
to such employee shall become one hundred percent (100%) exercisable, without
regard to the provisions of Section 2(b), above. In such event, the Options may
be exercised by the disabled director, or the person or persons to whom his or
her rights under the Option shall pass by will, or by the applicable laws of
descent and distribution; provided, however, that no such Option may be
exercised after 180 days from such directors’ s date of death, or the date
Optionee ceases to be a director as a result of disability, whichever is
applicable. Upon expiration of said period, all unexercised Options, or
portions thereof, shall terminate, be forfeited, and shall lapse.

 

(a)           (f) Notwithstanding the provision of
Section (b), above, in the event (1) there is a “Change of Control” of the
Corporation; and (2) the Optionee is removed as a director of the Corporation
without cause, then all of the options granted to such Optionee under this
Agreement shall become one hundred percent (100%) exercisable, subject to the
other provisions of this Section 2.  For
these purposes, a Change of Control of the Corporation shall mean (i) the
acquisition by any person or persons acting in concert (including corporations,
partnerships, associations or unincorporated organizations), of legal ownership
or beneficial 

 

 

 

ownership (within the meaning of Rule
13d-3, promulgated by the Securities and Exchange Commission and now in effect
under the Securities Exchange Act of 1934 (as amended), of a number of voting
shares of capital stock of the Corporation greater than either 30% or the
number of voting shares of capital stock of the Corporation that are then
owned, beneficially (as defined above), by Brion G. Wise, Bill M. Sanderson,
Walter L. Stonehocker, Dean Phillips, Ward Sauvage, their immediate families
and the companies through which they and their immediate families hold
ownership in the Corporation (“the Founders”), whichever is higher; (ii) a
merger or consolidation of the Corporation or any of its subsidiaries other
than a merger or consolidation immediately following which the directors of the
Corporation prior thereto constitute a majority of the of the board of the
surviving company or parent thereof; (iii) a change in the majority of the
Board pursuant to an actual or threatened proxy contest; or (iv) a sale of
substantially all of the Corporation’s assets.

 

3.  Method of
Exercise.  To exercise an Option, the
Optionee, or his or her successors, shall give written notice to the Treasurer
of the Corporation, at the Corporation’s principal office, accompanied by full
payment of the Common Stock being purchased. 
If the Option is exercised by the successor of the Optionee, following
his or her death, proof shall be submitted, satisfactory to the Board, of the
right of the successor to exercise the Option. 
The Corporation shall not be required to transfer or deliver any
certificate or certificates for shares purchased upon any such exercise of said
option: (a) until after compliance with all then applicable requirements of
law; and (b) prior to admission of such shares to listing on any stock exchange
on which the stock may then be listed. 
In no event shall the Corporation be required to issue fractional shares
to the Optionee.

 

4.  Limitation
Upon Exercise.  The option is not
transferable by the Optionee otherwise than by will or the laws of descent and
distribution and is exercisable, during the lifetime of Optionee, only by the
Optionee.

 

5.  Limitation
Upon Transfer.  Except as otherwise
provided hereto, the option and all rights granted hereunder shall not be
transferred by the Optionee, and may not be assigned, pledged, or hypothecated
in any way and shall not be subject to execution, attachment or similar
process. Upon any attempt to transfer the option, or to assign, pledge,
hypothecate or otherwise dispose of such Option or of any rights granted
hereunder, contrary to the provisions hereof, or upon the levy of any
attachment or similar process upon such option or such rights, such option and
such rights shall immediately become null and void.

 

6.  Stock
Adjustment.  In the event of any
change in Common Stock of the Corporation, by reason of a stock split, stock
dividend, recapitalization, exchange of shares, or other transaction, the
number of shares remaining subject to the option and the option price per share
shall be appropriately adjusted by the Board of Directors.

 

7.  Corporate
Reorganization.  If there shall be
any capital reorganization or consolidation or merger of the Corporation with
another corporation or corporations, or any sale of all or substantially all of
the Corporation’s properties and assets to any other corporation, the
Corporation shall take such action as may be necessary to enable the Optionee
to receive upon 

 

 

 

any subsequent exercise of such option, in whole or in part, in lieu of
shares of Common Stock, securities or other assets as were issuable or payable
upon such reorganization, consolidation, merger or sale in respect of, or in
exchange for such shares of Common Stock.

 

8.  Rights of
Stockholders.  Neither the Optionee,
his or her legal representative, nor other persons entitled to exercise the
option shall be or have any rights of a stockholder in the Company in respect
of the shares issuable upon exercise of the option granted hereunder, unless
and until certificates representing such shares shall have been delivered
pursuant to the terms hereof.

 

9.  Rights of
Director.  Nothing contained in this
Agreement shall confer upon Optionee any right to continue to remain as a
director of the Corporation.

 

10.  Stock
Reserved.  The Company shall at all
times during the term of this Agreement reserve and keep available such number
of shares of its Common Stock as will be sufficient to satisfy the terms of
this Agreement.

 

11.  Binding
Effect.  This Agreement shall be
binding upon and inure to the benefit of any successor or successors of the
Company.

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed as of the day and year first above written.

 

WESTERN GAS RESOURCES, INC.

 

 

 

	
  By:

  	
  /s/ Peter A. Dea

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   /s/ Brion G.
  Wise

  	
   

  
	
  OptioneeExhibit 10.3

 

WESTERN GAS RESOURCES,
INC.

2002 NON-EMPLOYEE
DIRECTORS’ STOCK OPTION AGREEMENT

 

 

THIS AGREEMENT, made as of May 10, 2004, by and
between Western Gas Resources, Inc. (hereinafter called the “Corporation”), a
Delaware corporation, and Brion Wise, a non-employee director of the
Corporation (hereinafter called the “Optionee”).

 

RECITALS:

 

A.            The Optionee is
eligible as a non-employee director of the Corporation to participate in the
Western Gas Resources, Inc. 2002 Non-Employee Director’s Stock Option Plan (the
“Plan”).

 

B.            The Board of
Directors of the Corporation considers it desirable and in the Corporation’s
best interests that the Optionee be given an opportunity to purchase shares of
its Common Stock in furtherance of the Plan to provide incentive for the
Optionee to remain as a director of the Company and to promote the success of
the Corporation.

 

NOW THEREFORE, in consideration of the premises, it is
agreed as follows:

 

1.  Grant of
Option.  The Corporation hereby
grants as of May 10, 2004 (the “Grant Date”) to the Optionee the right,
privilege and option to purchase 2,000 shares of the Common Stock par value
$0.10 (the “Common Stock”) of the Corporation, at a purchase price of Fifty
Five Dollars and thirty-seven 100ths ($55.37) per share in the manner and
subject to the conditions hereafter provided. 
Said purchase price is not less than the Fair Market Value (as that term
is defined in the Plan) of the shares of Common Stock of the Corporation at the
time this option was granted.

 

2.  Period of
Exercise of Option.  This Option may
be exercised in whole or in part, or in installments, from time to time, with
respect to the shares covered hereby, in the amounts and at the times specified
below.  The Option or any portion
thereof, once it becomes exercisable as specified below, shall remain
exercisable until it shall expire in accordance with the provisions of this
Agreement.

 

(a) 
Notwithstanding anything herein to the contrary, no Option or portion
thereof granted under this Agreement may be exercised after the earlier of (i)
five (5) years after the date the Optionee has the right to exercise such
Option or portion thereof, in accordance with paragraph 2(b) below; or (ii) ten
(10) years after the Option is granted.

 

(b)  Except as
expressly provided in Section 2(e), below, an Optionee shall become entitled to
exercise that portion of the Option and to purchase the percentage of the
Common stock subject to the Option in accordance with the following schedule:

 

(1)           Commencing
one (1) year from the Grant Date, the Optionee shall have the right to exercise
thirty-three and one-third percent (33-1.3%) of the Option and to purchase an 

 

 

 

additional thirty-three and one-third percent (33-1/3%) subject to the
Option.

 

(2)           Commencing
two (2) years from the Grant Date, the Optionee shall have the right to
exercise thirty-three and one-third percent (33-1.3%) of the Option and to
purchase an additional thirty-three and one-third percent (33-1/3%) subject to
the Option.

 

(3)           Commencing
three (3) years from the Grant Date, the Optionee shall have the right to
exercise thirty-three and one-third percent (33-1.3%) of the Option and to
purchase an additional thirty-three and one-third percent (33-1/3%) subject to
the Option.

 

The Optionee’s right to purchase Shares subject to the
Option shall be cumulative, so that three (3) years from the Grant Date, the
Optionee shall be entitled to exercise one hundred percent (100%) of the Option
and to purchase all of the Common Stock subject to the Option, subject to all
of the provisions of this Agreements.

 

(c)           Except
as provided in Sections 2(d) and 2(e), an Optionee may exercise an Option only
if, at the time such Option is exercised, such Optionee is a director of, and
has continuously since the grant of the Option, been a director of the
Corporation or any subsidiary, parent, or predecessor of the Corporation.

 

(d)           If
an Optionee ceases to be a director for any reason other than (i) his or her
death or disability; or (ii) his or her discharge for dishonesty or commission
of a crime, the Optionee may, within three (3) months thereafter, and subject
to provisions of Sections 2(a), (b) and (c), exercise the Option to the extent
that the Option was exercisable as of the date of the Optionee ceased to be a
director. All unexercised Options, or portions thereof, shall terminate, be
forfeited, and shall lapse upon expiration of said three (3) month period, or
immediately if the Optionee ceases to be a director of the Corporation for any
of the reasons set forth in (ii), above.

 

(e)           If
an Optionee dies or becomes disabled while he is a director of the Corporation or
ceases to be a director as a result of disability, all of the Options granted
to such employee shall become one hundred percent (100%) exercisable, without
regard to the provisions of Section 2(b), above. In such event, the Options may
be exercised by the disabled director, or the person or persons to whom his or
her rights under the Option shall pass by will, or by the applicable laws of
descent and distribution; provided, however, that no such Option may be
exercised after 180 days from such directors’ s date of death, or the date
Optionee ceases to be a director as a result of disability, whichever is
applicable. Upon expiration of said period, all unexercised Options, or
portions thereof, shall terminate, be forfeited, and shall lapse.

 

(a)           (f) Notwithstanding the provision of
Section (b), above, in the event (1) there is a “Change of Control” of the
Corporation; and (2) the Optionee is removed as a director of the Corporation
without cause, then all of the options granted to such Optionee under this
Agreement shall become one hundred percent (100%) exercisable, subject to the
other provisions of this Section 2.  For
these purposes, a Change of Control of the Corporation shall mean (i) the
acquisition by any person or persons acting in concert (including corporations,
partnerships, associations or unincorporated organizations), of legal ownership
or beneficial 

 

 

 

ownership (within the meaning of Rule
13d-3, promulgated by the Securities and Exchange Commission and now in effect
under the Securities Exchange Act of 1934 (as amended), of a number of voting
shares of capital stock of the Corporation greater than either 30% or the
number of voting shares of capital stock of the Corporation that are then
owned, beneficially (as defined above), by Brion G. Wise, Bill M. Sanderson,
Walter L. Stonehocker, Dean Phillips, Ward Sauvage, their immediate families
and the companies through which they and their immediate families hold
ownership in the Corporation (“the Founders”), whichever is higher; (ii) a
merger or consolidation of the Corporation or any of its subsidiaries other
than a merger or consolidation immediately following which the directors of the
Corporation prior thereto constitute a majority of the of the board of the
surviving company or parent thereof; (iii) a change in the majority of the
Board pursuant to an actual or threatened proxy contest; or (iv) a sale of
substantially all of the Corporation’s assets.

 

3.  Method of
Exercise.  To exercise an Option, the
Optionee, or his or her successors, shall give written notice to the Treasurer
of the Corporation, at the Corporation’s principal office, accompanied by full
payment of the Common Stock being purchased. 
If the Option is exercised by the successor of the Optionee, following
his or her death, proof shall be submitted, satisfactory to the Board, of the
right of the successor to exercise the Option. 
The Corporation shall not be required to transfer or deliver any
certificate or certificates for shares purchased upon any such exercise of said
option: (a) until after compliance with all then applicable requirements of
law; and (b) prior to admission of such shares to listing on any stock exchange
on which the stock may then be listed. 
In no event shall the Corporation be required to issue fractional shares
to the Optionee.

 

4.  Limitation
Upon Exercise.  The option is not
transferable by the Optionee otherwise than by will or the laws of descent and
distribution and is exercisable, during the lifetime of Optionee, only by the
Optionee.

 

5.  Limitation
Upon Transfer.  Except as otherwise
provided hereto, the option and all rights granted hereunder shall not be
transferred by the Optionee, and may not be assigned, pledged, or hypothecated
in any way and shall not be subject to execution, attachment or similar
process. Upon any attempt to transfer the option, or to assign, pledge,
hypothecate or otherwise dispose of such Option or of any rights granted
hereunder, contrary to the provisions hereof, or upon the levy of any
attachment or similar process upon such option or such rights, such option and
such rights shall immediately become null and void.

 

6.  Stock
Adjustment.  In the event of any
change in Common Stock of the Corporation, by reason of a stock split, stock
dividend, recapitalization, exchange of shares, or other transaction, the
number of shares remaining subject to the option and the option price per share
shall be appropriately adjusted by the Board of Directors.

 

7.  Corporate
Reorganization.  If there shall be
any capital reorganization or consolidation or merger of the Corporation with
another corporation or corporations, or any sale of all or substantially all of
the Corporation’s properties and assets to any other corporation, the
Corporation shall take such action as may be necessary to enable the Optionee
to receive upon 

 

 

 

any subsequent exercise of such option, in whole or in part, in lieu of
shares of Common Stock, securities or other assets as were issuable or payable
upon such reorganization, consolidation, merger or sale in respect of, or in
exchange for such shares of Common Stock.

 

8.  Rights of
Stockholders.  Neither the Optionee,
his or her legal representative, nor other persons entitled to exercise the
option shall be or have any rights of a stockholder in the Company in respect
of the shares issuable upon exercise of the option granted hereunder, unless
and until certificates representing such shares shall have been delivered
pursuant to the terms hereof.

 

9.  Rights of
Director.  Nothing contained in this
Agreement shall confer upon Optionee any right to continue to remain as a
director of the Corporation.

 

10.  Stock
Reserved.  The Company shall at all
times during the term of this Agreement reserve and keep available such number
of shares of its Common Stock as will be sufficient to satisfy the terms of
this Agreement.

 

11.  Binding
Effect.  This Agreement shall be
binding upon and inure to the benefit of any successor or successors of the
Company.

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed as of the day and year first above written.

 

WESTERN GAS RESOURCES, INC.

 

 

 

	
  By:

  	
   /s/ Peter A.
  Dea

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Brion G. Wise

  	
   

  
	
  Optionee

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