Document:

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                              NUEVO ENERGY COMPANY
                                GEORGE B. NILSEN
                                STOCK OPTION PLAN

     THIS AGREEMENT is entered into this 5th day of December, 2001, between
Nuevo Energy Company, a Delaware corporation (herein called "Company"), and
George B. Nilsen (herein called "Grantee").

     Grantee has been offered employment with the Company in accordance with the
terms set forth more fully below. In connection with the offer of employment and
to induce Grantee to accept his offer of employment, the Compensation Committee
of the Board of Directors of the Company has this day authorized the grant of
the following options to Grantee.

     NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the parties do hereby agree as follows:

     1. Grant of Options. Subject to all of the terms, conditions and provisions
of this Agreement, the Company hereby grants to Grantee options pursuant to
which Grantee shall have the right and option to purchase from the Company all
or any part of an aggregate of 75,000 shares of the common stock of the Company,
of the par value of one cent ($0.01) per share ("Common Stock"), which shares
shall consist of authorized but unissued shares or issued shares reacquired by
the Company. The option is not intended to constitute an "incentive stock
option" as that term is used in IRS Code Section 422.

     2. Option Price. The option or purchase price payable by Grantee to the
Company in exercise of this option shall be $12.00 dollars per share ("Option
Price"), being the fair market value of the Common Stock of the Company on
December 5, 2001 (the "Grant Date").

     3. Vesting. The options shall vest and become exercisable as to 50% of the
Common Stock covered hereby one year following the Grant Date and as to 100% of
the Common Stock covered hereby two years following the Grant Date.

Other terms and conditions upon which the options may be exercised are:

     (a) General. Except with respect to the death, disability, retirement or
voluntary or involuntary termination of employment of Grantee or as otherwise
agreed to in writing by the Board of Directors or the Compensation Committee of
the Board of Directors (the "Plan Administrator"), no option may be exercised at
any time unless Grantee has been continuously employed by the Company, or a
parent, subsidiary or affiliate of the Company, from the Grant Date until and
including the date on which the option is exercised.

     (b) Death. In the event of death of the Grantee, any options to the extent
vested and exercisable on the date of death may be exercised by the Grantee's
estate, or by a person who acquires the right to exercise the option by bequest
or inheritance or by reason of the death of the

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Grantee prior to the sooner (i) of the expiration date provided in Section 7 and
(ii) the close of business on the last business day that occurs prior to one
year following the Grantee's death. This provision shall apply notwithstanding
the fact that the Grantee's employment may have terminated prior to death
(including by disability, retirement or voluntary or involuntary termination),
but only to the extent of any options that are vested and exercisable on the
date of death.

     (c) Disability and Retirement. In the event of termination of the Grantee's
employment by reason of retirement or permanent disability (as each is
determined by the Plan Administrator), any options to the extent vested and
exercisable on the date of retirement or disability may be exercised by Grantee,
Grantee's estate or by any person who acquires the right to exercise the option
as a conservator or guardian, prior to the sooner of (i) the expiration date
provided in Section 7 and (ii) the close of business on the last business day
that occurs prior to 180 days following such date of termination (in the case of
permanent disability) or 90 days following such date of termination (in the case
of retirement). This provision shall apply notwithstanding that fact that the
Grantee's employment may have terminated prior to disability by reason of
retirement or voluntary or involuntary termination of employment but only to the
extent of options that are vested and exercisable on the date of disability.

     (d) Termination of Employment. In the event of the voluntary or involuntary
termination of employment of Grantee for reason other than death, retirement or
permanent disability, any options to the extent vested and exercisable on the
date of termination of employment may be exercised by Grantee prior to the
sooner of (i) the expiration date provided in Section 7 and (ii) the close of
business on the last business day that occurs prior to 30 days following such
date of termination.

The options granted herein shall automatically vest upon the happening of the
following events:

     (a) Merger. In the event the Company has entered into an agreement to (i)
merge or consolidate with another entity in a transaction in which the Company
shall not survive or (ii) sell all or substantially all of the assets of the
Company, and the surviving corporation or purchaser does not agree to assume
this option as provided in Section 11 herein, then this option shall
automatically vest as to all shares, the Company shall give notice of such
agreement to the Grantee and such option shall be exercisable immediately prior
to the consummation of such transaction.

     (b) Change in Control. Upon a Change in Control this option shall
automatically vest as to all shares, the Company shall give notice of the Change
of Control to the Grantee and such option shall be immediately exercisable. The
term "Change in Control" means a change in the beneficial ownership of the
Company's voting stock or a change in the composition of the board which occurs
as follows:

          (i) Any "person" (as such term is used in Section 13(d) and 14(d)(2)
     of the Securities Exchange Act of 1934) is or becomes a beneficial owner,
     directly or

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     indirectly, of stock of the Company representing 25% or more of the total
     voting power of the Company's then outstanding capital stock.

          (ii) A tender offer (for which a filing has been made with the SEC
     which purports to comply with the requirements of Section 14(d) of the
     Securities Exchange Act of 1934 and the corresponding SEC rules) is made
     for the stock of the Company. In case of a tender offer described in this
     paragraph (ii), the Change in Control will be deemed to have occurred upon
     the first to occur of (A) any time during the offer when the person (using
     the definition in (i) above) making the offer owns or has accepted for
     payment stock of the Company with 25% or more of the total voting power of
     the Company's outstanding stock or (B) three business days before the offer
     is to terminate unless the offer is withdrawn first, if the person making
     the offer could own, by the terms of the offer plus any shares owned by
     this person, stock with 50% or more of the total voting power of the
     Company's outstanding stock when the offer terminates.

          (iii) Individuals who were the board's nominees for election as
     directors of the Company immediately prior to a meeting of the stockholders
     of the Company involving a contest for the election of directors shall not
     constitute a majority of the board following the election.

     (c) Other Events. The Plan Administrator may declare any other event as an
event following which all or any portion of the options shall vest and be
exercisable, which may be subject to such terms and conditions as the Plan
Administrator may determine.

     4. Termination For Cause. Notwithstanding any other provision in this
Agreement, if the employment of Grantee is terminated "for cause," the option,
regardless of whether vested or unvested, shall immediately terminate and
Grantee shall have no rights with respect thereto. As used herein, cause means
(i) willful misconduct or intentional and continual neglect of duties which in
the business judgment of the Board of Directors of the Company (excluding the
Grantee if applicable) has materially adversely affected the Company or its
subsidiaries; provided, however, that the Grantee shall have first received
written notice from the Board of Directors advising of the acts or omissions
that constitute the misconduct or neglect of duties, and such misconduct or
neglect of duties continues after the Grantee shall have had a reasonable
opportunity to correct the same or (ii) theft or conviction of a felony or any
crime involving dishonesty or moral turpitude.

     5. Manner of Payment. The options granted herein may be exercised according
to the following methods:

     (a) Subject to the following provisions of this Section 5, upon the
exercise in respect of any shares of Common Stock, Grantee shall pay to the
Company, in full, the Option Price for such shares.

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     (b) The Option Price shall be payable in cash or by tendering shares of
Common Stock in a manner reasonably acceptable to the Plan Administrator and
valued at fair market value as of the day of exercise of the option, or in any
combination thereof.

     (c) The Plan Administrator may permit Grantee to elect to pay the Option
Price upon the exercise of an option through a cashless exercise procedure
approved by the Plan Administrator by irrevocably authorizing a broker to sell
shares of Common Stock (or a sufficient portion of the shares) acquired upon
exercise of such option and remit to the Company a sufficient portion of the
sale proceeds to pay the entire Option Price and any tax withholding resulting
from such exercise.

     6. Issuance of Certificates. As soon as practicable after receipt of
payment, the Company shall deliver to the Grantee a certificate or certificates
for such shares of Common Stock unless such certificate or certificates have
been previously delivered to a broker pursuant to Section 5. The Grantee shall
become a stockholder of the Company with respect to Common Stock represented by
share certificates so issued and as such shall be fully entitled to receive
dividends, to vote and to exercise all other rights of a stockholder.

     7. Exercise Period. The option shall become first exercisable after they
vest according to the terms of Section 3 hereof. Any portion of the option which
remains unexercised after the Company's close of business on the last business
day that occurs prior to the tenth anniversary of the Grant Date shall expire.
The option may be exercised only if the Common Stock or other securities
issuable upon such exercise are duly registered under the Securities Act of 1933
and applicable state securities laws, or unless the issuance is exempt from such
registrations.

     8. No Employment Commitment. Grantee acknowledges that neither the grant of
options nor the execution of this Agreement by the Company shall be interpreted
or construed as imposing upon the Company an obligation to retain his services
for any stated period of time, which employment shall continue to be at the
pleasure of the Company at such compensation as it shall determine, unless
otherwise provided in a written employment agreement.

     9. Grantee's Agreement. Grantee expressly and specifically agrees that:

     (a) With respect to the calendar year in which such options are exercised,
the Grantee shall include in his gross income for federal income tax purposes
the amount, if any, by which the fair market value of the stock on the date of
exercise exceeds the Option Price; and

     (b) The grant of options is special incentive compensation which shall not
be taken into account as "wages" or "salary" in determining the amount of
payment or benefit to the Grantee under any pension, thrift, stock or deferred
compensation plan of the Company, as the case may be; and

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     (c) On behalf of the Grantee's beneficiary, such grant shall not affect the
amount of any life insurance coverage available to such beneficiary under any
life insurance plan covering employees of the Company.

     10. Rights as a Stockholder. The Grantee shall have no rights as a
stockholder with respect thereto unless and until certificates for shares of
Common Stock are issued to him.

     11. Changes in the Company's Capital Structure.

     (a) The options shall not affect in any way the right or power of the
Company or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company's capital
structure or its business, or any merger or consolidation of the Company, or any
issue of bonds, debentures, preferred or prior preference stock ahead of or
affecting the Common Stock or the rights thereof, or the dissolution or
liquidation of the Company, or any sale or transfer of all or any part of its
assets or business, or any other corporate act or proceeding, whether of a
similar character or otherwise.

     (b) If, while the options are outstanding, the Company shall effect a
subdivision or consolidation of shares or other increase or reduction in the
number of shares of the Common Stock outstanding without receiving compensation
therefor in money, services or property, then, (i) in the event of an increase
in the number of such shares outstanding, the number of shares of Common Stock
then subject to options hereunder shall be proportionately increased; and (ii)
in the event of a decrease in the number of such shares outstanding the number
of shares then available for option hereunder shall be proportionately
decreased.

     (c) After a merger of one or more corporations into the Company, or after a
consolidation of the Company and one or more corporations in which the Company
shall be the surviving corporation, Grantee shall, at no additional cost, be
entitled upon exercise of this option to receive (subject to any required action
by stockholders) in lieu of the number of shares as to which this option shall
then be so exercisable, the number and class of shares of stock, other
securities or consideration to which Grantee would have been entitled to receive
pursuant to the terms of the agreement of merger or consolidation if,
immediately prior to such merger or consolidation, Grantee had been the holder
of record of a number of shares of the Company equal to the number of shares as
to which this option had been exercisable.

     (d) If the Company is about to be merged into or consolidated with another
corporation or other entity under circumstances where the Company is not the
surviving corporation, or if the Company is about to sell or otherwise dispose
of substantially all of its assets to another corporation or other entity while
unexercised options remain outstanding, then the Plan Administrator may, at its
discretion, direct that any of the following shall occur:

          (i) If the successor entity is willing to assume the obligation to
     deliver shares of stock or other securities after the effective date of the
     merger, consolidation or sale of assets, as the case may be, Grantee shall
     be entitled to receive, upon the exercise of this option and payment of the
     Option Price, in lieu

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     of shares of Common Stock, such shares of stock or other securities as
     Grantee would have been entitled to receive had this option been exercised
     immediately prior to the consummation of such merger, consolidation or
     sale, and the terms of this option shall apply as nearly as practicable to
     the shares of stock or other securities purchasable upon exercise of the
     option following such merger, consolidation or sale of assets;

          (ii) The Plan Administrator may waive any limitations set forth herein
     with respect to this option. This option shall become exercisable prior to
     the record or effective date of such merger, consolidation or sale of
     assets; and/or

          (iii) The Plan Administrator may cancel all outstanding options as of
     the effective date of any such merger, consolidation or sale of assets
     provided that prior notice of such cancellation shall be given to Grantee
     at least 30 days prior to the effective date of such merger, consolidation
     or sale of assets, and Grantee shall have the right to exercise the option
     in full during a period of not less than 30 days prior to the effective
     date of such merger, consolidation or sale of assets.

     (e) Except as herein provided, the issuance by the Company of Common Stock
or any other shares of capital stock or securities convertible into shares of
capital stock, for cash, property, labor done or other consideration, shall not
affect, and no adjustment by reason thereof shall be made with respect to, the
number or price of shares of Common Stock then subject to outstanding options.

     12. Administration; Amendment. The option grant shall be administered by
the Plan Administrator, which shall have authority to construe and apply the
provision hereof, and whose determinations shall be final and binding. Nothing
in this Agreement, however, shall give the Plan Administrator or any other
person the right, power or authority to change, amend, alter or repeal the terms
of this Agreement without the prior written consent of the Grantee.

     13. Non-Transferability. The options granted hereunder are not transferable
or assignable by Grantee except by will or the laws of descent and distribution
and during the life of Grantee shall only be exercisable by the Grantee or his
guardian or legal representative.

     IN WITNESS WHEREOF, this Agreement is executed and entered into effective
on the day and year first above expressed.

ATTEST:                                     NUEVO ENERGY COMPANY

/s/ Bruce K. Murchison                      By: /s/ James L. Payne
-------------------------                      -----------------------------
Bruce K. Murchison                          Name:  James L. Payne
Secretary                                   Title: Chairman, President and
                                                   Chief Executive Officer

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                                            /s/ George B. Nilsen
                                            --------------------------------
                                            George B. Nilsen, Grantee

                                       7<PAGE>

                              RESIGNATION AGREEMENT

          This Resignation Agreement (this "Agreement") by and between Nuevo
Energy Company, a Delaware corporation (the "Company"), and Robert M. King (the
"Executive"), is dated as of November 30, 2001 (the "Execution Date").

          WHEREAS, the Executive has been employed by the Company as its Senior
Vice President and Chief Financial Officer; and

          WHEREAS, the Company and the Executive have agreed that it is in the
best interest of the Company and the Executive for the Executive to resign, and
they wish to set forth their mutual agreement as to the terms and conditions of
such resignation;

          NOW, THEREFORE, the Company and the Executive hereby agree as follows:

          1. Resignation. Unless this Agreement is revoked pursuant to Section
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8, effective as of December 5, 2001 or such other date after the Execution Date
specified by the Company in writing to Executive, but in no event later than
December 31, 2001(the "Resignation Date"), the Executive shall be deemed to have
voluntarily resigned from his employment with the Company, and from all other
positions the Executive then held as an officer or employee of any of the
Company's subsidiaries or affiliates (the Company and all of its subsidiaries
and affiliates are hereinafter referred to as the "Affiliated Entities"). This
Agreement is expressly conditioned upon approval of the Company's Board of
Directors at its regularly scheduled meeting of December 5, 2001, ("Board
Effective Date").

          2. Severance Payments and Benefits. (a) On the later of the Revocation
             -------------------------------
Date (as defined in Section 8(b)), or January 3, 2002, the Company shall pay to
the Executive a lump sum in cash of the amounts forth on Exhibit A hereto.

               (b) Until the second anniversary of the Resignation Date, the
Company shall continue to provide the Executive and his eligible dependents with
medical insurance benefits (but not life or disability insurance) on the same
terms and conditions as employees of the Company, as in effect from time to
time, as if he had remained employed during that period, subject to his payment
of such employee contributions, copayments and similar charges as apply to
employees generally; provided, that such continued benefits shall terminate to
the extent the Executive becomes eligible for the same type of benefits (i.e.,
                                                                         ----
medical, dental and/or health insurance benefits) from another employer. The
period for the required continuation coverage under Section 601 et seq. of the
                                                                ------
Employee Retirement Income Security Act of 1974, as amended, and Section 4980B
of the Internal Revenue Code of 1986, as amended (the "Code") (known as "COBRA"
benefits), shall be considered to begin on the Resignation Date, and the Company
may provide the continued health insurance benefits in this Section 2(b) by
paying the employee's portion of the Executive's COBRA premiums.

               (c) Within ninety days after the Revocation Date the Company
shall pay to the Executive a lump sum in cash as determined in accordance with
the Company's Deferred Compensation Plan of which the most current balance is
set forth on Exhibit A hereto, which, together with any amounts contributed to
the Plan from the date of the balance to the Executive's resignation, represents
(solely for explanation and not in limitation or expansion of
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the obligation to pay such amount) the amount to which the Executive is entitled
under the Company's Deferred Compensation Plan, which payment shall be in
satisfaction of any of the Executive's rights under the Company's Deferred
Compensation Plan. The value of the non-cash investments shall be established as
of the Resignation Date. In addition, the Executive shall be entitled to receive
his vested benefits under the Company 401(k) Plan, in accordance with the terms
thereof.

               (d) For 2001 bonus year, the Company will pay the Executive an
annual bonus at the time at which annual bonuses are paid to the corporate
officers of the Company, and the Executive will have the same bonus percentage
as such other corporate officers, other than Messrs. Gobe and Payne.

               (e) The Company shall reimburse the Executive for any
unreimbursed business expenses incurred by the Executive on or prior to the
Resignation Date pursuant to the Company's reimbursement policies, within thirty
days following the Executive's presentation of an invoice to the Company;
provided, that the Company shall not reimburse the Executive for any expenses
for which the invoice is received by the Company after February 28, 2002.

          3. Equity and Performance Awards. Exhibit A hereto sets forth a
             -----------------------------
complete list of all of the Executive's currently outstanding stock options (the
"Stock Options") under the 1990 Stock Option Plan, the 1993 Stock Incentive Plan
and the 1999 Stock Incentive Plan. Notwithstanding any provision contained in
the applicable agreement governing any Stock Option (an "Award Agreement") or in
the applicable plan, the Stock Options shall be treated as set forth in this
Section 3, and the applicable Award Agreements are hereby amended to the extent
necessary to implement this Section 3. All Stock Options set forth in Exhibit A
as being retained by the Executive shall be exercisable as of the Revocation
Date and shall remain exercisable through the thirty-sixth month anniversary of
the Resignation Date (or, if earlier, until the end of their scheduled term),
and shall then expire to the extent not previously exercised. All Stock Options
set forth in Exhibit A as being surrendered by the Executive shall be cancelled
as of the Revocation Date. And the Executive shall have no further right or
interest in such cancelled options.

          4. Mutual Nondisparagement. (a) The Executive shall not make,
             -----------------------
participate in the making of, or encourage or facilitate any other person to
make, any statements, written or oral, which criticize, disparage, or defame the
goodwill or reputation of, or which are intended to embarrass or adversely
affect the morale of, any of the Affiliated Entities or any of their respective
present, former or future directors, officers, executives, employees and/or
shareholders. The Executive further agrees not to make any negative statements,
written or oral, relating to his employment, the termination of his employment,
or any aspect of the business of the Affiliated Entities.

               (b) The Company shall use reasonable best efforts to cause its
executive officers and directors and shall cause its Chief Executive Officer and
Chief Financial Officer not to make, participate in the making of, or encourage
or facilitate any employees or any other person to make, any statements, written
or oral, which criticize, disparage, or defame the reputation of, or which are
intended to embarrass, the Executive. In addition, the Company shall advise its
executive officers and directors not to make any negative statements, written or
oral, relating to the Executive's employment or the termination of his
employment.

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               (c) Notwithstanding the foregoing, nothing in this Section 4
shall prohibit any person from making truthful statements when required by order
of a court or other body having jurisdiction, or as otherwise may be required by
law or legal process.

          5. Mutual Confidentiality. The existence of and terms and conditions
             ----------------------
of this Agreement shall be held confidential by the parties hereto, except for
disclosure (a) by the Company as may be required by applicable securities laws,
as determined by the Company upon the advice of outside counsel, (b) by the
Executive to his legal and financial advisors and his spouse, each of whom shall
be instructed by the Executive to maintain the terms of this Agreement in strict
confidence in accordance with the terms hereof, (c) by either party if required
by order of a court or other body having jurisdiction over such matter, and (d)
by either party with the written consent of the other. With respect to
disclosures under (a) or (c) the disclosing party shall give the other prior
notice where reasonably practical and shall provide an opportunity to comment on
the disclosure. In addition, the Executive shall hold in a fiduciary capacity
for the benefit of the Company all secret or confidential information, knowledge
or data relating to the Affiliated Entities and their respective businesses that
he has obtained that is not or does not become public knowledge (other than as a
result of the Executive's violation of this Section 5) ("Confidential
Information"). The Executive shall not communicate, divulge or disseminate
Confidential Information at any time, except with the prior written consent of
the Company or as otherwise required by law or legal process.

          6. Other Covenants and Remedies (a) Transition Cooperation. The
             ----------------------------     ----------------------
Executive shall make himself reasonably available and assist the Company and its
Affiliated Entities for a period of up to 90 days following the Resignation Date
for such amount of time that is necessary, but in no event less than twenty
hours a week in the preparation of the Company's 2001 financial statements and
to assist in the transition to a new Chief Financial Officer. The Executive
shall report to and coordinate all activities with respect to the 2001 financial
statements with the Vice President of Finance and Administration and shall
otherwise assist the Vice President and the Company's Chief Financial Officer
when such position is filled. The Executive shall be compensated for such
services at a daily rate of $400 being one half of the Executive's base salary,
prior to the Resignation Date prorated to a daily payment. The activities of the
Executive under this Section 6(a) may be terminated at any time by the Company
by providing written notice to the Executive and, upon such termination, no
further obligations will exist between the parties except payment by the Company
for services rendered prior to termination.

               (b) Cooperation after Transition. The Executive shall make
                   ----------------------------
himself reasonably available to the Company following the Resignation Date to
assist the Affiliated Entities, as may be requested by the Company at mutually
convenient times and places, with respect to pending and future litigations,
arbitrations, governmental investigations or other dispute resolutions relating
to or in connection with matters that arose during the Executive's employment
with the Company. The Company will compensate the Executive for providing
assistance under this Section 6(a) or (b) at the rate of $175 per hour and will
reimburse the Executive for all reasonable expenses and costs he may incur as a
result of providing such assistance, upon receipt of proper documentation
thereof.

          7. Remedies. The Executive acknowledges and agrees that because of the
             --------
nature of the business in which the Company and the other Affiliated Entities
are engaged and because of the nature of the Confidential Information to which
the Executive has had access

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during his employment, it would be impractical and excessively difficult to
determine the actual damages of the Company and the other Affiliated Entities in
the event the Executive breached any of the covenants of Sections 4 or 5, and
remedies at law (such as monetary damages) for any breach of the Executive's
covenants under Sections 4 or 5 would be inadequate. The Company acknowledges
and agrees that it would be impractical and excessively difficult to determine
the actual damages of the Executive in the event the Company breached any of the
covenants of Sections 4 and 5, and remedies at law (such as monetary damages)
for any breach of the Company's covenants under Sections 4 and 5 would be
inadequate. The parties therefore agree and consent that if either of them
commits any such breach or threatens to commit any such breach, the other party
shall have the right (in addition to, and not in lieu of, any other right or
remedy that may be available to it) to temporary and permanent injunctive relief
from a court of competent jurisdiction, without posting any bond or other
security and without the necessity of proof of actual damage. With respect to
any provision of Sections 4 or 5 that is finally determined to be unenforceable,
the Executive and the Company hereby agree that this Agreement or any provision
hereof may be reformed so that it is enforceable to the maximum extent permitted
by law. If any of the covenants of Sections 4 or 5 is determined to be wholly or
partially unenforceable in any jurisdiction, such determination shall not be a
bar to or in any way diminish the Company's right to enforce any such covenant
in any other jurisdiction.

          8. Release. (a) In consideration of the payments and benefits set
             -------
forth in this Agreement, except for the rights expressly provided herein, the
Executive for himself, his heirs, administrators, representatives, executors,
successors and assigns (collectively "Releasors") does hereby irrevocably and
unconditionally release, acquit and forever discharge the Company and its
subsidiaries, shareholders, affiliates, divisions, trustees, officers,
directors, partners, agents, and former and current employees, including without
limitation all persons acting by, through, under or in concert with any of them
(collectively, "Releasees"), and each of them from any and all charges,
complaints, claims, liabilities, obligations, promises, agreements, including
the Severance Protection Agreement entered into between the parties on March 25,
2001, which is hereby cancelled and terminated for all purposes, controversies,
damages, remedies, actions, causes of action, suits, rights, demands, costs,
losses, debts and expenses (including attorneys' fees and costs) of any nature
whatsoever, known or unknown, whether in law or equity and whether arising under
federal, state or local law and in particular including any claim for
discrimination based upon race, color, ethnicity, sex, age (including the Age
Discrimination in Employment Act), national origin, religion, disability, or any
other unlawful criterion or circumstance, which the Executive and Releasors had,
now have, or may have in the future against each or any of the Releasees from
the beginning of the world until the Execution Date relating to the Executive's
employment with the Company and its subsidiaries and affiliates. In
consideration of the payments and benefits set forth in this Agreement, except
for the rights expressly provided herein, the Company, on behalf of itself and
the Releasees, hereby irrevocably and unconditionally releases, acquits and
forever discharges the Executive from any and all charges, complaints, claims,
liabilities, obligations, promises, agreements controversies, damages, remedies,
actions, causes of action, suits, rights, demands, costs, losses, debts and
expenses (including attorneys' fees and costs) of any nature whatsoever, known
or unknown, whether in law or equity and whether arising under federal, state or
local law which the Company had, now has, or may have in the future against
Executive from the beginning of the world until the Execution Date relating to
the Executive's employment with the Company and its subsidiaries and affiliates
but excluding only those acts which are unknown to the Company as

                                      -4-
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of the date hereof that would constitute a basis for termination for cause as
defined under the Executive's Employment Agreement.

               (b) The Executive acknowledges that: (i) this entire Agreement is
written in a manner calculated to be understood by him; (ii) he has been advised
to consult with an attorney before executing this Agreement; (iii) he was given
a period of twenty-one days within which to consider this Agreement; and (iv) to
the extent he executes this Agreement before the expiration of the
twenty-one-day period, he does so knowingly and voluntarily and only after
consulting his attorney. The Executive shall have the right to cancel and revoke
this Agreement during a period of seven days following the Board Effective Date,
and this Agreement shall not become effective, and no money shall be paid
hereunder, until the day after the expiration of such seven-day period (the
"Revocation Date"). The seven-day period of revocation shall commence upon the
Board Effective Date. In order to revoke this Agreement, the Executive shall
deliver to the Company, prior to the expiration of said seven-day period, a
written notice of revocation. Upon such revocation, this Agreement shall be null
and void and of no further force or effect.

          9. Confidential Data. Beginning upon the Resignation Date and for a
             -----------------
period of ninety days thereafter, the Company shall provide the Executive with
reasonable access during regular business hours to Company personnel, records
and data related to the Company's offshore California assets for the purpose of
evaluating a possible transaction with the Company. All obligations, duties and
responsibilities of the parties with respect to access to and use of the data
shall be governed solely by a separate Confidentiality Agreement to be entered
into by the parties.

          10. Return of Property. (a) Within 15 days after the Resignation Date,
              ------------------
the Executive shall surrender to the Company all property of the Affiliated
Entities in the Executive's possession and all property made available to the
Executive in connection with his employment by the Company, including, without
limitation, any and all records, manuals, customer lists, notebooks, computers,
computer programs, cellular phones, and files, papers, electronically stored
information and documents kept or made by the Executive in connection with the
Executive's employment.

               (b) For 45 days after the Resignation Date, the Company shall
provide the Executive with off-site voicemail services, and during such period,
the Executive's former secretary shall be permitted to forward voicemail and
electronic mail from the Company's voicemail and electronic mail systems to the
Executive's off-site voicemail and personal electronic mail account.

               (c) The Executive shall be permitted to have and keep his laptop
computer after first purging from such computer any proprietary confidential
information belonging to the Company or relating to the Company's business for
which he has not received written permission to retain. The depreciated book
value of the computer shall de deducted from the final payment due to the
Executive.

                                      -5-
<PAGE>

          11. Entire Agreement; Other Benefits. This Agreement sets forth the
              --------------------------------
entire agreement of the Company and the Executive with respect to the subject
matter hereof, and supersedes in its entirety the Employment Agreement, between
the Company and the Executive, dated as of September 1, 1998, as amended as of
September 1, 2000 and as of January 1, 2001, under which neither party shall
have any further obligation or liability to the other, and, as otherwise set
forth in this Agreement with respect to the option grants, deferred compensation
plan, and medical benefits or the Executive's rights to the vested component of
his 401(K) account, any severance plan, policy or arrangement of any of the
Affiliated Entities, including without limitation the Executive's Severance
Protection Agreement with the Company dated as of March 25, 2001. Without
limiting the generality of the foregoing, the Executive expressly acknowledges
and agrees that except as specifically set forth in this Agreement, he is not
entitled to receive any severance pay, severance benefits, compensation or
employee benefits of any kind whatsoever from any of the Affiliated Entities.

          12. Successors. This Agreement is personal to the Executive and
              ----------
without the prior written consent of the Company shall not be assignable by the
Executive other than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives. This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and no assignment shall release the
Executive or the Company or its successors from any obligations herein.

          13. Amendment. This Agreement may be amended, modified or changed only
              ---------
by a written instrument executed by the Executive and the Company.

          14. Governing Law; Consent to Suit. (a) This Agreement shall be
              ------------------------------
governed by and construed in accordance with the laws of the State of Texas,
without reference to principles of conflict of laws. The captions of this
Agreement are not part of the provisions hereof and shall have no force or
effect.

               (b) The parties hereto irrevocably consent to jurisdiction in the
courts of the state of Texas for resolution of any claim or dispute arising
hereunder, and such shall be the exclusive forum for the resolution of such
claim or dispute.

          15. Notices. All notices and other communications hereunder shall be
              -------
in writing; shall be delivered by hand delivery to the other party or mailed by
registered or certified mail, return receipt requested, postage prepaid; shall
be deemed delivered upon actual receipt; and shall be addressed as follows:

                                      -6-
<PAGE>

                                    If to the Executive:

                                    Robert M. King
                                    13515 Myrtlea
                                    Houston, Texas  77079

                                    With a copy to:

                                    Daniel Cohen

                                    Gardere, Wynne, Sewell LLP
                                    1000 Louisiana, Suite 3400
                                    Houston, Texas  77002

                                    If to the Company:

                                    Nuevo Energy Company
                                    1331 Lamar
                                    Suite 1650
                                    Houston, Texas 77010

                                           Attention: Bruce K. Murchison

                                    With a copy to:

                                    Michael S. Katzke, Esq.
                                    Wachtell, Lipton, Rosen & Katz
                                    51 West 52nd Street
                                    New York, New York  10019

or to such other address as either party shall have furnished to the other in
writing in accordance herewith.

          16. Tax Withholding. Notwithstanding any other provision of this
              ---------------
Agreement, the Company may withhold from any amounts payable under this
Agreement, or any other benefits received pursuant hereto, such minimum Federal,
state and/or local taxes as shall be required to be withheld under any
applicable law or regulation.

                                      -7-
<PAGE>

          IN WITNESS WHEREOF, each of the parties hereto has duly executed this
Agreement as of the date first set forth above.

                                    /S/ Robert M. King
                                    --------------------------------
                                    Robert M. King

                                    NUEVO ENERGY COMPANY

                                    By: /S/ James Payne
                                        --------------------------------
                                        James Payne
                                        Chief Executive Officer

                                      -8-
<PAGE>

                                    EXHIBIT A

Severance Compensation.

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