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                                                                   Exhibit 10.18

                     PLAINS EXPLORATION & PRODUCTION COMPANY
                        RESTRICTED STOCK AWARD AGREEMENT

     This Restricted Stock Award Agreement (the "Agreement"), executed as of the
25th day of September, 2002, by and between Plains Exploration & Production
Company (the "Company") and John T. Raymond (the "Grantee"), evidences the grant
by the Company of a stock award (the "Award") of restricted shares of common
stock, $.01 par value, of the Company (the "Shares") to the Grantee, to be
effective on the effective date of the initial public offering of the Company's
common stock in the public securities market (the "Grant Date"), and the
Grantee's acceptance of the Award in accordance with the provisions of the
Company's 2002 Stock Incentive Plan, as amended or restated from time to time
(the "Plan"). The Company and the Grantee agree as follows:

     1.   Basis for Award. This Award is made under the Plan pursuant to
Section 9 thereof for services to be rendered to the Company by the Grantee and
for the consideration the Company received as a result of Grantee entering into
an employment agreement with the Company.

     2.   Stock Awarded.

          (a) The Company hereby awards to the Grantee, in the aggregate, 60,000
Shares ("Restricted Stock"), which shall be subject to the restrictions and
conditions set forth in the Plan and in this Agreement.

          (b) Each certificate issued in respect of the Restricted Stock shall
be registered in the Grantee's name and deposited by him, together with a share
power endorsed in blank, with the Company and shall bear the following (or a
similar) legend:

          "THE TRANSFERABILITY OF THIS CERTIFICATE AND THE COMMON
          STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND
          CONDITIONS (INCLUDING FORFEITURE) CONTAINED IN THE
          RESTRICTED STOCK AWARD AGREEMENT EXECUTED ON SEPTEMBER __,
          2002, ENTERED INTO BETWEEN THE REGISTERED OWNER AND PLAINS
          EXPLORATION & PRODUCTION COMPANY"

At the expiration of the restrictions, the Company shall redeliver to the
Grantee (or his legal representative, beneficiary or heir) certificates for the
Shares deposited with it without any legend except as otherwise provided by the
Plan, this Agreement or as otherwise required by applicable law. The Grantee
shall have the right to receive dividends on and to vote the Restricted Stock
while it is held in custody except as otherwise provided by the Plan.
Notwithstanding the foregoing, the Company shall retain custody of all Retained
Distributions made or declared with respect to the Restricted Stock and such
Retained Distributions shall be subject to the same restrictions on terms and
conditions as are applicable to the Restricted Stock.

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          (c) Except as provided in the Plan or this Agreement, the Restricted
Stock shall be forfeited by the Grantee and all of the Grantee's rights to such
stock shall immediately terminate without any payment or consideration by the
Company in the event of any sale, assignment, transfer, hypothecation, pledge or
other alienation of such Restricted Stock made or attempted by or on behalf of
the Grantee, whether voluntary or involuntary, and if involuntary whether by
process of law in any civil or criminal suit, action or proceeding, whether in
the nature of an insolvency or bankruptcy proceeding or otherwise, without the
written consent of the Committee, excluding the Grantee if he so serves on the
Committee.

     3.   Vesting. The restrictions described in Section 2 of this Agreement
will lapse with respect to one-third (1/3) of the Restricted Stock on the first
anniversary of the Grant Date and with respect to an additional one-third (1/3)
of the Restricted Stock on each of the second and third anniversaries of the
Grant Date, provided the Grantee is still employed by the Company (or any Parent
or Subsidiary) on such vesting dates. All restrictions will lapse with respect
to 100% of the Restricted Stock upon (a) Grantee's death, separation from
service due to Disability, termination of employment by the Company without
Cause (as defined in Grantee's employment agreement), or termination of
employment by the Grantee for Good Reason provided that the Grantee's employment
agreement with the Company provides for a termination of employment by the
Grantee for Good Reason (as defined in such employment agreement), or (b) a
Change in Control of the Company. If the Grantee ceases to be employed by the
Company (or any Parent or Subsidiary) for any other reason at any time prior to
the vesting dates, the unvested Restricted Stock shall automatically be
forfeited upon such cessation of service.

     4.   Compliance with Laws and Regulations. The issuance and transfer of
Shares shall be subject to compliance by the Company and the Grantee with all
applicable requirements of securities laws and with all applicable requirements
of any stock exchange on which the Shares may be listed at the time of such
issuance or transfer. The Grantee understands that the Company is under no
obligation to register or qualify the Shares with the Securities and Exchange
Commission ("SEC"), any state securities commission or any stock exchange to
effect such compliance.

     5.   Tax Withholding.

          (a) The Grantee agrees that, subject to clause 5(b) below, no later
than the date as of which the restrictions on the Restricted Stock shall lapse
with respect to all or any of the Restricted Stock covered by this Agreement,
the Grantee shall pay to the Company (in cash or to the extent permitted by the
Committee, Shares held by the Grantee whose Fair Market Value on the day
preceding the date the Restricted Stock vests is equal to the amount of the
Grantee's tax withholding liability) any federal, state or local taxes of any
kind required by law to be withheld, if any, with respect to the Restricted
Stock for which the restrictions shall lapse. The Company or its affiliates
shall, to the extent permitted by law, have the right to deduct from any payment
of any kind otherwise due to the Grantee any federal, state or local taxes of
any kind required by law to be withheld with respect to the Shares of Restricted
Stock.

          (b) If the Grantee properly elects, within thirty (30) days of the
Grant Date, to include in gross income for federal income tax purposes an amount
equal to the Fair Market

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Value as of the Grant Date of the Restricted Stock granted hereunder pursuant to
Section 83(b) of the Internal Revenue Code of 1986, as amended, the Grantee
shall pay to the Company, or make other arrangements satisfactory to the
Committee to pay to the Company in the year of such grant, any federal, state or
local taxes required to be withheld with respect to such Shares. If the Grantee
fails to make such payments, the Company or its affiliates shall, to the extent
permitted by law, have the right to deduct from any payment of any kind
otherwise due to the Grantee any federal, state or local taxes of any kind
required by law to be withheld with respect to such Shares.

     6.   No Right to Continued Employment. Nothing in this Agreement shall be
deemed by implication or otherwise to impose any limitation on any right of the
Company or any of its affiliates to terminate the Grantee's employment at any
time, in the absence of a specific written agreement to the contrary.

     7.   Representations and Warranties of Grantee. The Grantee represents and
warrants to the Company that:

          (a) Agrees to Terms of the Plan. The Grantee has received a copy of
the Plan and has read and understands the terms of the Plan and this Agreement,
and agrees to be bound by their terms and conditions. The Grantee acknowledges
that there may be adverse tax consequences upon the vesting of Restricted Stock
or disposition of the Shares once vested, and that the Grantee should consult a
tax adviser prior to such time.

          (b) Cooperation. The Grantee agrees to sign such additional
documentation as may reasonably be required from time to time by the Company.

     8.   Adjustment Upon Changes in Capitalization. In the event of a Change in
Capitalization, the Committee may make appropriate adjustments to the number and
class of Shares relating to Restricted Stock as it deems appropriate, in its
sole discretion, to preserve the value of this Award. The Committee's adjustment
shall be made in accordance with the provisions of Section 13 of the Plan and
shall be effective and final, binding and conclusive for all purposes of the
Plan and this Agreement.

     9.   Governing Law; Modification. This Agreement shall be governed by the
laws of the State of Delaware without regard to the conflict of law principles.
The Agreement may not be modified except in writing signed by both parties.

     10.  Defined Terms. Except as otherwise provided herein, or unless the
context clearly indicates otherwise, capitalized terms used but not defined
herein have the definitions as provided in the Plan. The terms and provisions of
the Plan are incorporated herein by reference, and the Grantee hereby
acknowledges receiving a copy of the Plan. In the event of a conflict or
inconsistency between the discretionary terms and provisions of the Plan and the
provisions of this Agreement, this Agreement shall govern and control.

     11.  Miscellaneous. The masculine pronoun shall be deemed to include the
feminine, and the singular number shall be deemed to include the plural unless a
different meaning is plainly required by the context.

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     IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the
date first above written.

                                PLAINS EXPLORATION & PRODUCTION
                                COMPANY

                                    /s/ James C. Flores
                                By:______________________________________
                                Name:  James C. Flores
                                Title: Chairman of the Board and Chief Executive
                                       Officer

                                /s/ John T. Raymond
                                ______________________________________
                                John T. Raymond

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                                                                   EXHIBIT 10.19

                     PLAINS EXPLORATION & PRODUCTION COMPANY
                            2002 STOCK INCENTIVE PLAN
                       STOCK APPRECIATION RIGHTS AGREEMENT

     THIS AGREEMENT, entered into as of September 3, 2002, with respect to the
following grant of Stock Appreciation Rights, such grant to be effective on the
effective date (the "Grant Date") of the initial public offering (the "IPO") of
common stock of Plains Exploration & Production Company, a Delaware corporation
(the "Company"), by and between the Company and Stephen Thorington ("Grantee").

     WHEREAS, the Company has adopted the Plains Exploration & Production
Company 2002 Stock Incentive Plan (the "Plan") in order to provide additional
incentives to certain employees, officers, consultants and directors of the
Company and its Subsidiaries, Affiliates and Divisions; and

     WHEREAS, pursuant to the Employment Agreement, dated as of August 20, 2002,
between Grantee and the Company, the Company has agreed to grant an Award of
Stock Appreciation Rights under the Plan to Grantee.

     NOW, THEREFORE, the Committee has acted as follows:

     1. Grant of Stock Appreciation Rights ("SARs").

     1.1 The Company hereby grants to Grantee during the period commencing on
the Grant Date of this agreement (the "Agreement") and ending on the close of
business on September 3, 2007 (the "Termination Date") an Award of 300,000 SARs.

     1.2 The "Exercise Price" per SAR is equal to the price per Share in the
IPO, which has been determined to be the Fair Market Value of a Share on the
Grant Date.

     1.3 This Agreement shall be construed in accordance and consistent with,
and subject to, the provisions of the Plan (the provisions of which are
incorporated herein by reference) and, except as otherwise expressly set forth
herein, the capitalized terms used in this Agreement shall have the same
definitions as set forth in the Plan.

     2. Duration of Award.

     The Award shall be exercisable to the extent and in the manner provided
herein from the Grant Date until the Termination Date (the "Exercise Term");
provided, however, that the Award may be earlier terminated as provided in
Section 5 hereof.

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     3. Exercisability of Award.

     Unless otherwise provided in this Agreement or the Plan, the Award shall
entitle Grantee to exercise, in whole at any time or in part from time to time,
one-third of the total number of SARs covered by this Award on September 3,
2003, and an additional one-third of the total number of SARs covered by this
Award on each of September 3, 2004 and September 3, 2005; provided, however,
that if Grantee dies, or is terminated by the Company for any reason other than
Cause, the unvested portion of the Award shall vest and be immediately
exercisable. Each right of exercise shall be cumulative and shall continue,
unless sooner exercised or terminated as herein provided, during the remaining
period of the Exercise Term.

     4. Manner of Exercise.

     4.1 Subject to the terms and conditions of this Agreement and the Plan, the
SARs may be exercised by delivery in person, by telecopy or by mail of written
notice to the Company, at its principal executive office. Such notice shall
state that Grantee is electing to exercise a specific number of SARs and shall
be signed by the person or persons exercising the SARs. If requested by the
Committee, such person or persons shall (i) deliver this Agreement to the
Secretary of the Company who shall endorse thereon a notation of such exercise
and (ii) provide satisfactory proof as to the right of such person or persons to
exercise the Award.

     4.2 Upon the exercise of SARs, Grantee shall be entitled to receive an
amount determined by multiplying (A) the Appreciation Value of a Share, by (B)
the number of SARs being exercised. Payment of such amount shall be made in
cash.

     4.3 Grantee shall not be deemed to be the holder of, or to have any of the
rights of a holder with respect to, any Shares as a result of the grant or
exercise of this Award.

     5. Termination of Employment.

     5.1 Termination for any Reason other than Cause. If Grantee's employment is
terminated for any reason other than by the Company for Cause, or due to
Grantee's death, the Award shall continue to be exercisable for the duration of
the Exercise Term. In the event of Grantee's death, the Award shall be
exercisable by the legatee or legatees under his or her will, or by his or her
personal representatives or distributees and such person or persons shall be
substituted for Grantee each time Grantee is referred to herein.

     5.2 Termination for Cause. If the employment of Grantee is terminated for
Cause, any unexercised portion of the Award shall terminate on the date of
Grantee's termination of employment (whether or not exercisable).

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     6. Effect of Change in Control.

     Notwithstanding anything contained in this Agreement to the contrary, in
the event of a Change in Control, Grantee will be permitted to surrender for
cancellation within ninety (90) days after such Change in Control, this Award or
any portion of this Award to the extent not yet exercised and Grantee shall be
entitled to receive immediately a cash payment in an amount equal to the
Appreciation Value of this Award, if any, on the date of surrender.

     7. Nontransferability.

     This Award shall not be transferable other than by will or by the laws of
descent and distribution or pursuant to a domestic relations order (as
contemplated by the Plan). This Award shall be exercisable only by Grantee or
Grantee's guardian or legal representative during the lifetime of Grantee.

     8. No Right to Continued Employment.

     Nothing in this Agreement or the Plan shall be interpreted or construed to
confer upon Grantee any right with respect to continuance of employment by the
Company, nor shall this Agreement or the Plan interfere in any way with the
right of the Company to terminate Grantee's employment at any time.

     9. Adjustments.

     In the event of a Change in Capitalization, the Committee may make
appropriate adjustments to the number and class of Shares or other stock or
securities subject to this Award and the exercise price for such Shares or other
stock or securities. The Committee's adjustment shall be made in accordance with
the provisions of Section 14 of the Plan and shall be effective and final,
binding and conclusive for all purposes of the Plan and this Agreement.

     10. Effect of a Merger, Consolidation or Liquidation.

     Subject to Section 6 hereof, upon the effective date of a Transaction, (i)
this Award shall be treated as provided for in the agreement entered into in
connection with the Transaction, or (ii) if not so provided in such agreement,
Grantee shall be entitled to receive in respect of each unexercised SAR, upon
exercise, the same number and kind of stock, securities, cash, property or other
consideration that each holder of a Share was entitled to receive in the
Transaction in respect of a Share; provided, however, that such stock,
securities, cash, property, or other consideration shall remain subject to all
of the conditions, restrictions and performance criteria applicable to this
Award prior to such Transaction.

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     11. Withholding of Taxes.

     The Company shall have the right to deduct from any distribution of cash to
Grantee an amount equal to the federal, state and local income taxes and other
amounts as may be required by law to be withheld (the "Withholding Taxes") with
respect to this Award.

     12. Grantee Bound by the Plan.

     Grantee hereby acknowledges receipt of a copy of the Plan and agrees to be
bound by all the terms and provisions thereof.

     13. Modification of Agreement.

     This Agreement may be modified, amended, suspended or terminated, and any
terms or conditions may be waived, but only by a written instrument executed by
the parties hereto.

     14. Severability.

     Should any provision of this Agreement be held by a court of competent
jurisdiction to be unenforceable or invalid for any reason, the remaining
provisions of this Agreement shall not be affected by such holding and shall
continue in full force in accordance with their terms.

     15. Governing Law.

     The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of Delaware without giving
effect to the conflicts of laws principles thereof.

     16. Successors in Interest.

     This Agreement shall inure to the benefit of and be binding upon any
successor to the Company. This Agreement shall inure to the benefit of Grantee's
legal representatives. All obligations imposed upon Grantee and all rights
granted to the Company under this Agreement shall be final, binding and
conclusive upon Grantee's heirs, executors, administrators and successors.

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     17. Resolution of Disputes.

     Any dispute or disagreement which may arise under, or as a result of, or in
any way relate to, the interpretation, construction or application of this
Agreement shall be determined by the Committee. Any determination made hereunder
shall be final, binding and conclusive on Grantee and Company for all purposes.

                         PLAINS EXPLORATION & PRODUCTION
                         COMPANY

                         By:             /s/ James C. Flores
                              ---------------------------------------------
                         Name:             James C. Flores
                               --------------------------------------------
                         Title:    Chairman and Chief Executive Officer
                                -------------------------------------------

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