Document:

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                                                                    Exhibit 10.6

                               APACHE CORPORATION

                  AMENDED AND RESTATED CONDITIONAL STOCK GRANT
                                    AGREEMENT

     THIS AGREEMENT is made effective as of January 1, 2005 between APACHE
CORPORATION, a Delaware corporation (the "Company"), and G. Steven Farris
("Grantee") as an amendment and restatement of the agreement initially entered
into by the parties on December 17, 1998 and subsequently amended June 6, 2001.

     1. GRANT. Subject to the terms of this Agreement and effective as of
December 17, 1998, the Company hereby granted to Grantee a conditional stock
award (the "Award") of up to 100,000 shares (230,992 shares after adjustment*)
of the Company's common stock, par value $0.625 per share (the "Common Stock").

     2. RESTRICTIONS. The Award granted hereunder is subject to the following
terms, conditions, restrictions and risks of forfeiture:

          (a) Shares of Common Stock to be issued pursuant to this Award may not
be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of
by Grantee until vested and paid in accordance with paragraph 2(b) and not
otherwise forfeited in accordance with the terms hereof.

          (b) Subject to the other provisions of this Agreement, the Award shall
be payable to Grantee in periodic installments (each an "Installment"), on the
fifth anniversary of each commencement date (each a "Commencement Date") as set
out below for each applicable Installment (each a "Vesting Date"):

<TABLE>
<CAPTION>
        INSTALLMENT           COMMENCEMENT DATE     VESTING DATE
        -----------           -----------------     ------------
(in shares of Common Stock)
<S>                           <C>                 <C>
           6,667               January 1, 1999    January 1, 2004
 (15,398 after adjustment*)
           13,333              January 1, 2000    January 1, 2005
 (30,798 after adjustment*)
           20,000              January 1, 2001    January 1, 2006
 (46,200 after adjustment*)
           26,667              January 1, 2002    January 1, 2007
 (61,598 after adjustment*)
           33,333              January 1, 2003    January 1, 2008
 (76,998 after adjustment*)
</TABLE>

*    adjusted for the Company's (i) ten-percent stock dividend, record date
     December 31, 2001, paid January 21, 2002, (ii) five-percent stock dividend,
     record date March 12, 2003, paid April 2, 2003, and (iii) two-for-one stock
     split, record date December 31, 2003, distributed January 14, 2004.
<PAGE>
Each Installment shall be paid to Grantee within five (5) business days of the
applicable Vesting Date for such Installment as follows: 60% of the value of the
Installment shall be in the form of shares of Common Stock and 40% of the value
of the Installment (inclusive of withholding of any required income tax
withholding) shall be in the form of cash. The value of each applicable
Installment shall be the product of (i) the number of shares for such
Installment as set out in the above table, and (ii) the closing price of the
shares of Common Stock on The New York Stock Exchange, Inc. Composite
Transactions Reporting System ("NYSE") on the Vesting Date or, if the Vesting
Date is not a day on which the NYSE is open for trading, the last business day
preceding the Vesting Date when the NYSE is open for trading. Except as
otherwise provided in subparagraph (d) through (e) below, Grantee shall not be
entitled to any payment with respect to any Installment unless Grantee is
employed by the Company on the applicable Vesting Date.

          (c) If, prior to any Vesting Date, Grantee elects to discontinue his
employment with the Company, or his employment with the Company is terminated
for cause, as defined in that certain Employment Agreement between Grantee and
the Company dated June 6, 1988, then Grantee shall forfeit all Installments of
the Award for which a Vesting Date has not occurred as of the date of
termination as provided above.

          (d) If, prior to any Vesting Date, the Company elects to terminate
Grantee's employment with the Company other than for cause as defined in
subparagraph (c) above, or Grantee dies or becomes totally disabled, then
Grantee (or his beneficiary, as stated below in the case of death) shall be
entitled to receive payment, as provided in this subparagraph (d), for the value
of all Installments for which a Commencement Date has occurred on or prior to
the date of termination, death or total disability, as applicable. The payment
for the value of such Installment(s) shall be made to Grantee within thirty (30)
days of the date of termination, death or disability, as applicable, shall be
solely in cash, with the value of such Installment(s) being the product of (i)
the number of shares for such Installment or Installments as set out in the
above table, and (ii) the closing price of the shares of Common Stock on the
NYSE on the date of termination, death or disability, as applicable, or, if such
date is not a day on which the NYSE is open for trading, the last business day
preceding such date when the NYSE is open for trading. Grantee may name a
beneficiary or beneficiaries to receive any payment which he would otherwise be
entitled to hereunder in the event of his death while in the employ of the
Company. Such designation shall be made on a form to be provided by and filed
with the Corporate Secretary of the Company. If Grantee fails to designate a
beneficiary or no designated beneficiary survives Grantee, such payment shall be
made to the legal representative of Grantee's estate. Grantee shall not be
entitled to receive payment under this subparagraph (d) for any Installment for
which a Commencement Date has not occurred as of the date of termination, death
or disability, as applicable.

          (e) If, prior to any Vesting Date, an individual other than Grantee or
the current Chief Executive Officer of the Company, becomes the Chief Executive
Officer of the Company (which, for purposes of this subparagraph, shall include
any entity which comes to control the Company), then Grantee, upon written
request to the

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Company, is entitled to receive payment, as provided in this subparagraph (e),
for the value of all Installments for which a Commencement Date has occurred on
or prior to the date of the written request The payment for such Installment(s)
shall be made to Grantee within thirty (30) days of receipt of Grantee's notice,
shall be solely in cash, with the value of such Installment(s) being the product
of (i) the number of shares for such Installment or Installments as set out in
the above table, and (ii) the closing price of the shares of Common Stock on the
NYSE on the date of such written request or if such date is not a day on which
the NYSE is open for trading, the last business day preceding such date when the
NYSE is open for trading.

          (f) The shares of Common Stock issuable in accordance with this
Agreement have not be registered under the Securities Act of 1933, as amended
(the "Act"), and are subject to the restrictions contained in paragraph 8 of
this Agreement.

     3.   ENFORCEMENT OF RESTRICTIONS.

          (a) Each stock certificate issued in the name of Grantee pursuant to
this Agreement shall bear the following restrictive legend:

          THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE
          RESTRICTIONS CONTAINED IN A CONDITIONAL STOCK GRANT AGREEMENT DATED AS
          OF DECEMBER 17, 1998, BY AND BETWEEN APACHE CORPORATION AND G. STEVEN
          FARRIS, A COPY OF WHICH IS ON FILE AT THE OFFICE OF THE CORPORATE
          SECTETARY OF THE COMPANY.

          (b) Grantee shall not be entitled to delivery of the stock certificate
for the share portion of any Installment of the Award until such Installment has
vested in Grantee and been paid by the Company in accordance with paragraph
2(a). Prior to the Vesting Date for any Installment, all stock certificates
shall be held by the Corporate Secretary and Grantee hereby agrees to execute a
blank stock power with respect to the stock certificate representing the share
portion of any Installment.

     4. PRIVILEGES OF A STOCKHOLDER. Upon the occurrence of a Commencement Date
and subject to the restrictions of paragraph 2, Grantee shall have all voting,
dividend and liquidation rights of a stockholder of the Company with respect to
the shares of Common Stock subject to the applicable Installment,
notwithstanding that such Installment is unvested.

     5. ADMINISTRATION. This Agreement shall be administered by the Board of
Directors of Apache Corporation (the "Board of Directors") or any committee
thereof as may be empowered by the Board of Directors. Any action taken or
decision made by the Company, the Board of Directors, or its delegates arising
out of or in connection with the construction, interpretation or effect of this
Agreement shall lie within its sole and

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absolute discretion, and shall be final, conclusive and binding on Grantee and
all persons claiming under or through Grantee. By accepting this Agreement,
Grantee and all persons claiming under or through Grantee shall be conclusively
deemed to have indicated acceptance and ratification of, and consent to, any
action taken under this Agreement by the Company, the Board of Directors, or its
delegates.

     6.   ADJUSTMENTS.

          (a) If the Company shall at any time increase or decrease the number
of its outstanding shares of Common Stock or change in any way the rights and
privileges of such shares by means of a stock dividend or any other distribution
upon such shares payable in shares of Common Stock, or through a stock split,
subdivision, consolidation, combination, reclassification or recapitalization
involving the outstanding shares of Common Stock (hereinafter a "capital
restructuring"), then upon the occurrence of a capital restructuring, the number
of shares of Common Stock of each unvested Installment shall be appropriately
increased, decreased or changed in like manner as if the number of shares of
Common Stock of each unvested Installment had been issued, outstanding, fully
paid and non-assessable at the record date for the capital restructuring.

          (b) In the event that the Company is merged or consolidated with
another corporation and the Company is not the surviving corporation, or if all
or substantially all of the assets or more than 50 percent of the outstanding
shares of Common Stock of the Company is acquired by any other corporation,
business entity or person, or in case of a reorganization (other than a
reorganization under the United States Bankruptcy Code) or liquidation of the
Company, and if the provisions of subparagraph (c) hereof do not apply, the
Board of Directors, or the board of directors of any corporation assuming the
obligations of the Company, shall either (i) make appropriate provision for the
adoption and continuation of this Agreement by the acquiring or successor
corporation and for the protection of Grantee by the substitution on an
equitable basis of appropriate stock of the Company or of the merged,
consolidated or otherwise reorganized corporation which will be issuable with
respect to any outstanding Installment, provided that no additional benefits
shall be conferred upon Grantee as a result of such substitution, or (ii) upon
written notice to Grantee, the Board of Directors, in its sole discretion, if it
so elects, may accelerate the vesting of any unvested Installment so that all
unvested Installments become fully vested (and become immediately payable upon
vesting) at the time of, or prior to, any such event.

          (c) In the event of a change of control of the Company, as defined
below, all unvested Installments shall automatically vest, without further
action by the Board of Directors, as of the date of such change of control.
Payment shall occur on or before the fifth business day following the change of
control.

          (d) For purposes of this Agreement, a "change of control" shall mean
any of the events specified in the Company's Income Continuance Plan, as
amended, or any successor plan which constitute a change in control within the
meaning of such plan.

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          (e) Any adjustments under this paragraph shall be made by the Board of
Directors whose determination with regard thereto shall be final and binding on
all parties.

     7. WITHHOLDING OF TAX. The Grantee hereby agrees that the Company is
entitled to make any required income tax withholding from any payments made
under paragraph 2.

     8. INVESTMENT REPRESENTATION. Grantee hereby acknowledges that any shares
of Common Stock issued pursuant to this Agreement are acquired for investment
without a view to distribution, within the meaning of the Act, and shall not be
sold, transferred, assigned, pledged or hypothecated in the absence of an
effective registration statement under the Act or an applicable exemption from
the registration requirements of the Act and any applicable state securities
laws and the following legend shall be imprinted on any stock certificate.

          THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED UNDER THE FEDERAL SECURITIES ACT OF 1933, AS AMENDED, OR
          APPLICABLE STATE SECURITIES LAWS. THESE SECURITIES HAVE BEEN ACQUIRED
          FOR INVESTMENT AND NOT WITH A VIEW TO DISTRIBUTION OR RESALE AND MAY
          NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED, OFFERRED, OR OTHERWISE
          DISPOSED OF IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT
          UNDER APPLICABLE SECURITIES LAWS OR AN OPINION FROM COUNSEL ACCEPTABLE
          TO THE COMPANY STATING THAT SUCH REGISTRATION IS NOT REQUIRED.

     9. LISTING AND REGISTRATION OF COMMON STOCK. This Agreement shall be
subject to the requirement that, if at any time counsel to the Company shall
determine that the listing, registration or qualification of the shares of
Common Stock issued pursuant to this Agreement upon any securities exchange or
under any state or federal law, or the consent or approval of any governmental
or regulatory body, is necessary as a condition of, or in connection with, the
issuance of the shares hereunder, this Agreement may not be accepted in whole or
in part unless such listing, registration, qualification, consent or approval
shall have been effected or obtained on conditions acceptable to the Board of
Directors. Nothing herein shall be deemed to require the Company to apply for or
to obtain such listing, registration or qualification.

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     10. NO RIGHT TO CONTINUE AS DIRECTOR OR EMPLOYEE. Nothing contained in this
Agreement shall interfere with or limit in any way the right of the stockholders
of the Company to remove Grantee from the Board of Directors pursuant to the
Bylaws or the Restated Certificate of Incorporation of the Company, nor confer
upon Grantee any right to continue in the employment of the Company.

     11. NOTICES. Any notice hereunder to the Company shall be addressed to:
Apache Corporation, One Post Oak Central, 2000 Post Oak Boulevard, Suite 100,
Houston, Texas 77056-4400, Attention: Corporate Secretary, and any notice to
Grantee shall be addressed to Grantee at Grantee's last address on the records
of the Company, subject to the right of either party to designate at any time
hereafter in writing some other address. Any notice shall be deemed to have been
duly given when delivered personally or enclosed in a properly sealed envelope,
addressed as set forth above, and deposited (with first class postage prepaid)
with the United States Postal Service.

     12. BINDING EFFECT. This Agreement shall be binding upon and inure to the
benefit of any successors to the Company and all persons lawfully claiming under
or through Grantee.

     13. GOVERNING LAW. The validity, construction, interpretation,
administration and effect of this Agreement, shall be governed by the
substantive laws, but not the choice of law rules, of the State of Texas.

     IN WITNESS WHEREOF, the Company and Grantee have executed this Agreement on
September 15, 2005. The Agreement is effective as of January 1, 2005.

ATTEST:                                 APACHE CORPORATION

/s/ Cheri L. Peper                      /s/ Jeffrey M. Bender
-------------------------------------   ----------------------------------------
Cheri L. Peper                          By: Jeffrey M. Bender
Corporate Secretary                     Its: Vice President

                                        GRANTEE

                                        /s/ G. Steven Farris
                                        ----------------------------------------
                                        G. Steven Farris
                                        Printed Name

                                                                               6<PAGE>
                                                                    Exhibit 10.7

                               APACHE CORPORATION
                    NON-EMPLOYEE DIRECTORS' COMPENSATION PLAN
   As Amended and Restated September 15, 2005; Effective as of January 1, 2005

                                     PURPOSE

The purpose of the Non-Employee Directors' Compensation Plan (the "PLAN") is to
set forth certain of the compensation arrangements for members of the board of
directors (the "BOARD") of Apache Corporation ("APACHE") who are not also
employees of Apache ("NON-EMPLOYEE DIRECTORS"). The Plan supersedes the
Directors' Deferred Compensation Plan. The Plan does not supersede or amend in
any way any other arrangements relating to Non-Employee Directors including
specifically, without limitation, the Equity Compensation Plan for Non-Employee
Directors, the Outside Directors' Retirement Plan, indemnification provisions of
Apache's charter or bylaws, or policies with respect to reimbursement of
expenses.

                                 PLAN PROVISIONS

1. BOARD RETAINER. Each Non-Employee Director shall be paid, as soon as
practicable following accrual, the Board retainer fees set forth below:

     (a) $10,000.00 shall be paid to each Non-Employee Director at the end of
     each calendar quarter during which such Non-Employee Director served as a
     member of Apache's Board ("CASH RETAINER FEE");

     (b) $2,500.00 in value of Apache common stock, par value $0.625 per share
     ("STOCK"), shall be paid from Apache's treasury shares to each Non-Employee
     Director at the end of each calendar quarter during which such Non-Employee
     Director served as a member of Apache's Board ("STOCK RETAINER FEE"). The
     number of shares of Stock shall be determined by dividing $2,500.00 by the
     per share closing price of the Stock as reported on The New York Stock
     Exchange, Inc. Composite Transactions Reporting System (the "COMPOSITE
     TAPE") as of the trading day prior to the last trading day of the relevant
     calendar quarter, with any fractional shares to be paid to the director in
     cash; and

     (c) In the event that a Non-Employee Director serves as a member of
     Apache's Board for less than an entire calendar quarter, the fees payable
     pursuant to sections 1(a) and 1(b) shall be prorated on the basis of the
     number of weeks served during such calendar quarter.

2. COMMITTEE RETAINERS. Each Non-Employee Director serving on any committee of
Apache's Board shall be paid, as soon as practicable, the committee retainer fee
("COMMITTEE RETAINER FEE") set forth below:

     (a) $500.00 shall be paid to each Non-Employee Director at the end of each
     calendar quarter in respect of each committee on which such Non-Employee
     Director served during such quarter;

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     (b) $1,000.00 shall be paid to each Non-Employee Director at the end of
     each calendar quarter in respect of each committee on which such
     Non-Employee Director served as chairperson during such quarter; and

     (c) In the event that a Non-Employee Director serves on any committee of
     Apache's Board and/or as chairperson of any committee of Apache's board for
     less than an entire calendar quarter, the fees payable pursuant to sections
     2(a) and 2(b) shall be prorated on the basis of the number of weeks served
     during such calendar quarter.

3. ATTENDANCE FEES. Each Non-Employee Director shall receive the attendance fee
("ATTENDANCE FEE") set forth below, such fee to be paid at each such meeting or
as soon thereafter a practicable:

     (a) $1,500.00 shall be paid for each meeting of the Board or of any
     committee thereof attended in person; and

     (b) $1,000.00 shall be paid for each meeting of the Board or of any
     committee thereof attended by teleconference, video conference, or other
     similar means.

4. OPTIONAL DEFERRAL OF FEES.

     (a) DEFERRABLE FEES. A Non-Employee Director may defer all or any portion
     of any unpaid Cash Retainer Fee, Stock Retainer Fee, Committee Retainer
     Fee, and Attendance Fee, all of which are paid to Non-Employee Directors
     with respect to their services performed as a director on the Board
     ("DEFERRABLE FEES"). No other payments to Non-Employee Directors may be
     deferred including, without limitation, any expense reimbursement, any
     award under Apache's Equity Compensation Plan for Non-Employee Directors,
     and benefits payable under the Outside Directors' Retirement Plan.

     (b) ELECTION TO DEFER. A Non-Employee Director's election to defer all or
     any portion of Deferrable Fees ("DEFERRAL ELECTION") shall be effected by
     the completion of a Deferral Election form. A Deferral Election form must
     be executed by the deferring Non-Employee Director and received by Apache
     on or before December 31 of the year prior to the year for which deferral
     is elected, except that a new Non-Employee Director may enter into a
     Deferral Election within 30 days of becoming a Non-Employee Director. A
     Deferral Election shall apply only to Deferrable Fees paid for services
     rendered after the date of the Deferral Election. Each December 31, a
     Deferral Election made for the following year shall become irrevocable. A
     new Deferral Election must be made each year for the upcoming year.

     (c) MEMORANDUM ACCOUNT. Apache shall maintain a separate account
     ("MEMORANDUM ACCOUNT") for each deferring Non-Employee Director. Each
     Memorandum Account shall be subdivided into a "CASH ACCOUNT" and a "STOCK
     ACCOUNT." The Memorandum Accounts are merely for recordkeeping purposes,
     and do not represent any actual property that has been set aside for
     Non-Employee Directors. Nothing contained in this Plan shall be construed
     to require Apache to fund any Memorandum Account. Neither the deferring
     Non-Employee Director nor

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     his or her Beneficiary shall have any property interest whatsoever in any
     specific assets of Apache.

     (d) CREDITING OF ACCOUNTS. Any deferred Cash Retainer Fees and deferred
     Committee Retainer Fees shall be credited to the Cash Account or the Stock
     Account, as the Non-Employee Director may elect. Any deferred Stock
     Retainer Fees shall be credited to the Stock Account. Any deferred
     Attendance Fees shall be credited to the Cash Account. Only whole shares of
     Stock will be credited to a Stock Account; the value of any fractional
     share shall instead be credited to the Cash Account. Apache shall at all
     times have reserved from its treasury shares for issuance under this Plan a
     number of shares at least equal to the number of shares of Stock in the
     Stock Accounts.

     (e) NUMBER OF SHARES. The number of shares of Stock that are credited to a
     Stock Account shall be determined by dividing the amount deferred by the
     per share closing price of the Stock as reported on the Composite Tape as
     of the trading day prior to the last trading day of the calendar quarter in
     which the deferral occurs.

     (f) INVESTMENT. All amounts credited to a Stock Account shall be treated as
     if such amounts were invested in Stock; any dividends paid on Stock shall
     be credited to the Cash Account. All amounts credited to a Cash Account
     shall be credited with investment earnings at the rate of interest earned
     by Apache's short-term marketable securities portfolio or an equivalent
     index or market rate for similar investments in short-term marketable
     securities. Each year, a Non-Employee Director may elect to transfer all or
     a portion of his or her Cash Account to his or her Stock Account (but only
     in whole-share increments) by completing an election form that must be
     received by Apache on or before December 31. Any such transfer shall be
     made as of the first trading day of the following year, and shall be based
     on the per share closing price of the Stock as reported on the Composite
     Tape for the first trading day of the year. Transfers are not permitted
     from a Stock Account to a Cash Account. A Non-Employee Director shall have
     no ownership rights with respect to any balance in his or her Memorandum
     Account, and thus shall have no right to vote any Stock in his or her Stock
     Account.

     (g) PAYOUT ELECTIONS. If a Non-Employee Director's directorship terminated
     before January 1, 2005, his or her benefit payments shall be determined
     under the terms of the Plan on December 31, 2004 and the payout elections
     in effect at the time his or her directorship terminated. The remainder of
     this section 4(g) shall only apply to individuals who continue as
     Non-Employee Directors after December 31, 2004, or who became Non-Employee
     Directors after December 31, 2004.

          (i) Election. A Non-Employee Director shall make one payout election
          for his or her Memorandum Account. The payout election shall specify
          both the timing and form of distribution. The payout election must be
          made by the later of December 31, 2005 or 30 days after the individual
          became a Non-Employee Director; if no payout election is made by that
          time, the Non-Employee Director shall be deemed to have elected to be
          paid a single lump-sum payment in January after separating from
          service (except that, if he or she is a specified employee, his or her
          payment shall be delayed, if necessary, until six months after he or
          she separated from service). The

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          payout election will not apply if there is a change of control (see
          section 4(h)) or the Non-Employee Director dies (see section 4(i)).

          (ii) Form of Payout. A Non-Employee Director may elect to be paid out
          in a single lump-sum payment or in two to ten annual installments.
          Each installment from a Stock Account shall be equal to the number of
          shares in the Stock Account on the second business day of that year,
          divided by the number of remaining installments, rounded down to the
          nearest whole share. For example, the first installment from a Stock
          Account payable in seven installments beginning in 2008 shall be
          one-seventh of the shares in the account on the second trading day of
          2008; the second installment shall be one-sixth of the shares in the
          account on the second trading date of 2009; etc. Each installment from
          a Cash Account shall be equal to the balance of the Cash Account on
          the second trading day of the year, divided by the number of remaining
          installments, except that the last installment shall equal the balance
          of the Cash Account at the time the distribution is processed.
          Distributions from the Stock Account shall be paid in whole shares of
          Stock. Distributions from the Cash Account shall be paid in cash.

          (iii) Timing of Payment(s). A Non-Employee Director may select a
          specific year in which the single lump-sum payment is made or the
          installment payments begin ("IN-SERVICE DISTRIBUTION"), in which case
          the payment will be made as soon as administratively practicable in
          January of the earlier of the selected year or the year after the
          Non-Employee Director separates from service (but, if the Non-Employee
          Director is a specified employee, not earlier than six months after he
          or she separated from service). Alternatively, a Non-Employee Director
          may elect for his or her single lump-sum payment or first installment
          to be paid as soon as administratively practicable in the January
          after the Non-Employee Director separated from service (but, if the
          Non-Employee Director is a specified employee, not earlier than six
          months after separating from service). Subsequent installment payments
          shall be made in January of each year, beginning with the year after
          the first installment was paid.

          (iv) Special Rules Where Payments Begin While Still a Director. This
          section 4(g)(iv) applies to a Non-Employee Director who elected an
          In-Service Distribution. A second Memorandum Account shall be
          established for the Non-Employee Director for any amounts deferred
          into the Plan during or after the year in which the In-Service
          Distribution is scheduled to begin. Distributions from the second
          Memorandum Account shall be subject to the rules specified in this
          section 4(g), except that a Non-Employee Director must complete a
          payout election for the second Memorandum Account by the December 31
          that immediately precedes the year in which amounts are first deferred
          into the second Memorandum Account.

          (v) Definitions. As used in this section 4, the term "specified
          employee" has the meaning described in section 409A(a)(2)(B)(i) of the
          Internal Revenue Code of 1986, as amended ("CODE"), and the term
          "separate from service" or "separation from service" has the meaning
          described in section 409A(a)(2)(A)(i) of the Code.

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     (h) CHANGE OF CONTROL. If there is a change of control of Apache that is
     described in section 409A(a)(2)(A)(v) of the Code, each Memorandum Account
     shall be paid to the appropriate Non-Employee Director (or to the
     Beneficiary of a deceased Non-Employee Director) in a single lump-sum
     payment made on the date of the change of control or as soon thereafter as
     is administratively practicable.

     (i) BENEFICIARIES. If a Non-Employee Director dies while there is still a
     balance in his or her Memorandum Account, that amount shall be paid to his
     or her Beneficiary in a single lump-sum payment that is made as soon as
     administratively convenient after the Non-Employee Director's death, after
     giving the Beneficiary an opportunity to disclaim and after Apache has been
     furnished with proof of death and such other information as it may
     reasonably require.

          (i) Designation. Each Non-Employee Director shall designate one or
          more persons, trusts, or other entities as his or her beneficiary
          ("BENEFICIARY"). In the absence of an effective Beneficiary
          designation as to part or all of a Memorandum Account, such amount
          shall be distributed to the Non-Employee Director's surviving Spouse,
          if any, otherwise to the Non-Employee Director's estate. Unless the
          Non-Employee Director's Beneficiary designation form specifies
          otherwise, if a Beneficiary dies after the Non-Employee Director but
          before being paid by the Plan, the Plan shall pay the Beneficiary's
          estate.

          (ii) Changing Beneficiaries. A Beneficiary designation may be changed
          by the Non-Employee Director at any time and without the consent of
          any previously designated Beneficiary. However, if the Non-Employee
          Director is married, the Non-Employee Director's Spouse shall be the
          Beneficiary unless the Spouse has consented to the designation of a
          different Beneficiary. To be effective, the Spouse's consent must have
          been made before January 1, 2005 or, if made on or after January 1,
          2005, the Spouse's consent must be in writing, witnessed by a notary
          public, and filed with Apache. If the Non-Employee Director has
          designated his or her Spouse as a primary or contingent Beneficiary,
          and the Non-Employee Director and Spouse later divorce (or their
          marriage is annulled), then the former Spouse will be treated as
          having pre-deceased the Non-Employee Director for purposes of
          interpreting a Beneficiary designation form completed prior to the
          divorce or annulment; this provision will apply only if Apache is
          notified of the divorce or annulment before payment to the former
          Spouse is made.

          (iii) "SPOUSE" shall mean the individual to whom a Non-Employee
          Director is lawfully married according to the laws of the state of the
          Non-Employee Director's domicile.

          (iv) Disclaimers. Any individual or legal entity who is a Beneficiary
          may disclaim all or any portion of his or her interest in the Plan,
          provided that the disclaimer satisfies the requirements of section
          2518(b) of the Code and applicable state law. The legal guardian of a
          minor or legally incompetent person may disclaim for such person. The
          personal representative (or the individual or legal entity acting in
          the capacity of the personal representative according to applicable
          state law) may disclaim on behalf of a Beneficiary who

                                                                               5
<PAGE>
          has died. The amount disclaimed shall be distributed as if the
          disclaimant had predeceased the individual whose death caused the
          disclaimant to become a Beneficiary.

     (j) ADJUSTMENTS IN STOCK. In the event of any merger, consolidation,
     liquidation, dissolution, recapitalization, or reorganization of Apache,
     split, subdivision, or consolidation of shares of Stock, the payment of a
     stock dividend, or any other material change in Apache's capital structure,
     the number of shares of Stock shown in each deferring Non-Employee
     Director's Stock Account shall be adjusted to reflect that number of shares
     of Stock or such cash, securities, or other property to which such
     Non-Employee Director would have been entitled if, immediately prior
     thereto, such Non-Employee Director had been the holder of record of the
     number of shares of Stock shown in the Stock Account. Notwithstanding the
     foregoing, the issuance by Apache of Stock, rights, options, or warrants to
     acquire Stock, or securities convertible or exchangeable into Stock in
     consideration of cash, property, labor, or services, whether or not for
     fair value, shall not result in an adjustment pursuant to this section
     4(j).

5. ASSIGNMENT AND TRANSFER. The right of the Non-Employee Director or any other
person to receive payments under the Plan shall not be assigned, transferred,
pledged, or encumbered.

6. AMENDMENT OF PLAN. The Plan may be amended from time to time or terminated by
vote of the Board. Upon such amendment or termination, Non-Employee Directors
shall not be entitled to receive pursuant to the Plan any compensation or other
rights or benefits not accrued hereunder prior to the time of amendment or
termination hereof; provided, however, that no such Plan amendment or
termination shall impair any rights of Non-Employee Directors to amounts
previously accrued pursuant to the Plan or accumulated in such Non-Employee
Director's Memorandum Account. A Plan termination shall not affect the timing of
any benefit payments from a Memorandum Account; payment may occur substantially
after the Plan is terminated. A Plan amendment may delay the timing of a benefit
payment. A Plan amendment may accelerate the timing of a benefit payment, but
only if the acceleration would not cause the Plan to violate section 409A(a)(3)
of the Code.

7. SUCCESSORS AND ASSIGNS. The Plan is binding upon Apache and its successors
and assigns. The Plan shall continue in effect until terminated by the Board.
Any such termination shall operate only prospectively and shall not affect the
rights and obligations under elections previously made.

8. NOTICES. Any notice, form, or election required or permitted to be given
under the Plan shall be in writing and shall be given by first class mail, by
Federal Express, UPS, or other carrier, by fax or other electronic means, or by
personal delivery to the appropriate party, addressed:

     (a) If to Apache, to Apache Corporation at its principal place of business
     at 2000 Post Oak Boulevard, Suite 100, Houston, Texas 77056-4400
     (Attention: Corporate Secretary) or at such other address as may have been
     furnished in writing by Apache to a Non-Employee Director; or

                                                                               6
<PAGE>
     (b) If to a Non-Employee Director or Spouse, at the address the
     Non-Employee Director has furnished to Apache in writing.

     (c) If to a Beneficiary, at the address the Non-Employee Director has
     furnished to Apache in writing for such Beneficiary.

Any such notice to a Non-Employee Director, Spouse, or Beneficiary shall be
deemed to have been given as of the third day after deposit in the United States
Postal Service, postage prepaid, properly addressed as set forth above, in the
case of a mailed notice, or as of the date delivered in the case of any other
method of delivery.

9. GENDER. Any term used herein in the singular shall also include the plural,
and the masculine gender shall also include the feminine gender, and vice versa.

10. STATUTORY REFERENCES. Any reference to a specific section of the Code shall
be deemed to refer to that section or to the appropriate successor section.

11. GOVERNING LAW. The Plan and all elections hereunder shall be construed in
accordance with and governed by the laws of the State of Texas.

Dated: September 15, 2005; Effective as of January 1, 2005

ATTEST:                                 APACHE CORPORATION

/s/ Cheri L. Peper                      /s/ Jeffrey M. Bender
-------------------------------------   ----------------------------------------
Cheri L. Peper                          Jeffrey M. Bender
Corporate Secretary                     Vice President, Human Resources

                                                                               7

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