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 Exhibit 10.6  

 
 

  VENOCO, INC. 2008 EMPLOYEE STOCK PURCHASE PLAN    
    

 ARTICLE I  

 PURPOSE  

        The purpose of the Venoco, Inc. 2008 Employee Stock Purchase Plan (the "Plan") is to encourage and facilitate stock ownership by
Employees by providing an opportunity to purchase Common Stock through voluntary after-tax payroll deductions. The Plan is intended to be a qualified "employee stock purchase plan" under
Section 423 of the Code. 

 ARTICLE II  

 DEFINITIONS  

        2.1    Definitions.    Whenever used herein, the following terms shall have the respective meanings set forth below. 

        (a)   "Applicable Exchange" means the New York Stock Exchange or such other securities exchange as may at the applicable time
be the principal market for the Common Stock. 

        (b)   "Board" means the Board of Directors of the Company. 

        (c)   "Code" means the Internal Revenue Code of 1986, as amended, including, for these purposes, any regulations promulgated by
the Internal Revenue Service with respect to the provisions of the Code ("Treasury Regulations"), and any successor thereto. 

        (d)   "Committee" means the Compensation Committee of the Board or such other committee of the Board as the Board shall
designate. 

        (e)   "Common Stock" means the common stock, par value $0.01 per share, of the Company. 

        (f)    "Company" means Venoco, Inc., a Delaware corporation. 

        (g)   "Compensation" means, for the relevant period, (a) the total compensation paid in cash to an Employee by the
Company, including salaries, wages, and overtime pay, plus (b) any pre-tax contributions made by such Employee under Section 401(k) or pursuant to a cafeteria plan described
in Section 125 of the Code, or any similar plan, program or arrangement. "Compensation" shall exclude bonuses, incentive compensation, non-cash items or benefits received under
employee benefit plans or arrangements, and any other amounts paid to the Employee that are specifically excluded by the Plan Administrator. 

        (h)   "Continuous Service" means the period of time, uninterrupted by a termination of employment, that an Employee has been
employed by the Company immediately preceding an Offering Date. Such period of time shall include any leave of absence approved by the Plan Administrator. 

        (i)    "Custodian" means the bank, trust company or other entity selected by the Plan Administrator to serve as the custodian
under the Plan. 

        (j)    "Disability" means, with respect to an Employee, the inability of such Employee to perform the duties of his or her
employment due to illness or disability for a period of at least 180 consecutive days, as determined by the Plan Administrator acting reasonably and in good faith based on the recommendations, if any,
from such Employee's physician or, at the option of the Plan Administrator, a physician selected by the Plan Administrator. 

        (k)   "Employee" means any individual designated as an employee of the Company on the payroll records thereof. Employee status
shall be determined consistent with Treasury Regulation section 1.421-1(h), or its successor provision. 

 

        (l)    "Fair Market Value" means, if the Common Stock is listed on a national securities exchange as of a given date, the
closing price for the Common Stock on such date on the Applicable Exchange, or if shares of Common Stock were not traded on the Applicable Exchange on such measurement date, then on the next preceding
date on which such shares were traded, all as reported by such source as the Plan Administrator may select. If the Common Stock is not listed on a national securities exchange, Fair Market Value shall
be determined by the Plan Administrator in its good faith discretion. 

        (m)  "Individual Account" means a separate account maintained by the Custodian for each Employee participating under
Article V hereof. 

        (n)   "Manager" means one or more employees of the Company (including the head of Human Resources) selected by the Plan
Administrator to assist with the administration of the Plan, as described in Article III. 

        (o)   "Offering" means the grant of Purchase Rights to purchase shares of Common Stock under the Plan to eligible Employees. 

        (p)   "Offering Date" has the meaning given such term in Section 5.2. 

        (q)   "Offering Period" has the meaning given such term in Section 5.2. 

        (r)   "Payroll Contributions" means an Employee's after-tax contributions of Compensation by payroll deduction
pursuant to Section 5.4, and authorized by the Employee pursuant to Sections 5.3. 

        (s)   "Plan" means this Venoco, Inc. 2008 Employee Stock Purchase Plan, as may be amended from time to time as provided
herein. 

        (t)    "Plan Administrator" means a committee comprised solely of employees of the Company selected by the Board or the
Committee; provided that the initial committee shall be comprised of the Chief Financial Officer, the President, the head of Human Resources and the
General Counsel of the Company. References to "Plan Administrator" shall include the Plan Administrator's designees or delegees (under a delegation authorized by Article III), but solely to the
extent of the delegated authority and unless the context requires otherwise. 

        (u)   "Purchase Date" means one or more dates during an Offering established by the Plan Administrator on which Purchase Rights
shall be exercised as described in Section 5.5. 

        (v)   "Purchase Period" means a period of time specified within an Offering beginning on the Offering Date or on the next day
following a Purchase Date within an Offering and ending on a Purchase Date. An Offering may consist of one or more Purchase Periods. The Purchase Periods shall initially be of one (1) month
duration. 

        (w)  "Purchase Price" has the meaning set forth in Section 5.6. 

        (x)   "Purchase Right" means an option to purchase shares of Common Stock granted pursuant to the Plan. 

        (y)   "Terminating Event" means a participating Employee's termination of employment with the Company for any reason or any
other event that causes such Employee to no longer meet the requirements of Article IV; provided,  however, that, for purposes of the Plan, an
individual's employment relationship is considered to be intact while such individual is on any leave of
absence approved by the Plan Administrator; provided further, however, that if such period of leave of
absence exceeds ninety (90) days, and the individual's right to reemployment is not guaranteed either by statute or by contract, the employment relationship shall be deemed to have terminated
on the ninety-first (91st) day of such leave. 

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        (z)   "Trading Day" means any day on which the Applicable Exchange is open for trading. 

 ARTICLE III  

 ADMINISTRATION  

        The Plan shall be administered by the Plan Administrator. The Plan Administrator shall have all authority that may be necessary or
helpful to enable it to discharge its responsibilities with respect to the Plan. Without limiting the generality of the foregoing sentences of this Article III, subject to the express
provisions of the Plan, the Plan Administrator shall have full and exclusive discretionary authority to interpret and construe any and all provisions of the Plan and any agreements, forms, and
instruments relating to the Plan; prescribe the forms of all agreements, forms, and instruments relating to the Plan; determine eligibility to participate in the Plan; adopt rules and regulations for
administering the Plan; adjudicate and determine all disputes arising under or in connection with the Plan; determine whether a particular item is included in "Compensation;" and make all other
determinations deemed necessary or advisable for administering the Plan. Decisions, actions and determinations by the Plan Administrator with respect to the Plan or any agreement, form or instrument
relating to the Plan shall be final, conclusive and binding on all parties. Subject to applicable laws, rules, and regulations, the Plan Administrator may, in its discretion, from time to time,
delegate all or any part of its responsibilities and powers under the Plan to one or more employees of the Company (including the head of Human Resources) (the "Manager"), and revoke any such
delegation. Notwithstanding the foregoing, the Board or the Committee, in its absolute discretion, may at any time and from time to time exercise any and all rights, duties and responsibilities of the
Plan
Administrator under the Plan, including, but not limited to, establishing procedures to be followed by the Plan Administrator. 

 ARTICLE IV  

 ELIGIBILITY  

        Except as otherwise provided herein, any Employee who on an Offering Date has completed at least three months of Continuous Service may
become a participant in the Plan; provided, however, that no Employee may participate in the Plan if (i) such Employee, immediately after an
Offering Date, would be deemed for purposes of Section 423(b)(3) of the Code to possess five percent (5%) or more of the total combined voting power or value of all classes of stock of the
Company, or (ii) such Employee, as of the Offering Date, is a "highly compensated employee" (within the meaning of Section 414(q) of the Code) if such Employee is also subject to the
disclosure requirements of Section 16(a) of the Securities Exchange Act of 1934, as amended. 

 ARTICLE V  

 STOCK PURCHASES  

        5.1    Stock to Be Issued.    Subject to the provisions of Section 9.5, the number of shares of Common Stock
that may be issued under the Plan shall not exceed 1,500,000 shares. The shares to be delivered to Employees, or their beneficiaries, under the Plan may consist, in whole or in part, of authorized but
unissued shares, not reserved for any other purpose, or shares acquired by the Custodian for purposes of the Plan in the market or otherwise. If Purchase Rights granted under the Plan shall for any
reason terminate without having been exercised, the shares of Common Stock not purchased under such Purchase Right shall again become available for issuance under the Plan. 

        5.2    Offering.    The Plan shall be implemented by offerings (individually, an
"Offering") of six (6) months duration (the "Offering Period") and consisting of one or more
Purchase Periods; provided, however, that the first Offering Period shall be five (5) months, commencing on February 1, 2009 and 

3

 

ending
on June 30, 2009. Subsequent Offerings shall commence on each January 1 and July 1 thereafter until the Plan terminates. The first day of an Offering Period shall be the
"Offering Date" for such Offering Period. In the event the Offering Date is not a Trading Day, the Offering Date shall instead be the first Trading Day
after such day. Notwithstanding the foregoing provisions of this Section 5.2, prior to the commencement of an Offering, the Plan Administrator may establish an Offering Date and/or Offering
Period duration of such Offering that differs from those set forth above in this Section 5.2, provided that the duration of an Offering Period
may not exceed twenty-seven (27) months from the Offering Date (or the expiration of such other applicable period specified under Section 423(b)(7) of the Code or any successor provision
of the Code thereto). Each Offering shall comply with the requirement of Section 423(b)(5) of the Code that all Employees granted Purchase Rights shall have the same rights and privileges. 

        5.3    Participation.    An Employee who meets the requirements of Article IV may participate in an Offering by
completing enrollment in the form or manner prescribed by the Plan Administrator not later than the close of business for the Company on the last business day before the Offering Date of such
Offering, or such earlier time as the Plan Administrator may prescribe with respect to Employees generally, and by satisfying such other conditions or restrictions as the Plan Administrator shall
establish in accordance with the Plan. The Employees who elect to participate in the Plan shall at the time of such election authorize a payroll deduction from the Employee's Compensation to be made
as of any future payroll period, in accordance with Section 5.4. Any such election to authorize payroll deductions shall be effective commencing on the first Offering Date immediately following
completion of enrollment in the manner prescribed by the Plan Administrator. 

        5.4    Employee Contributions.    An Individual Account shall be established for each participating Employee to which
shall be credited the amount of any Payroll Contributions, and the number of full shares of Common Stock that are purchased by such Employee pursuant to the terms of the Plan. An Employee may
authorize Payroll Contributions of at least one percent (1%) but not more than ten percent (10%) of his or her Compensation; provided, however, that an
Employee shall not be permitted to purchase during any one calendar year Common Stock pursuant to the Plan (and under any other employee stock purchase plan of the Company which is intended to qualify
under Section 423 of the Code) at a rate which exceeds $25,000 in Fair Market Value, determined as of the applicable Offering Dates (or such other amount as may be adjusted from time to time
under applicable provisions of the Code). Except as provided in Section 5.7, if an Employee has a Terminating Event, (i) such Employee may not make further Payroll Contributions, and
(ii) his or her right to purchase shares of Common Stock in the then-current Offering Period shall terminate, and any amount of cash then credited to his or her Individual Account
shall be returned to the Employee or his or her designated beneficiary pursuant to the Plan, as applicable, as soon as practical thereafter. No interest shall accrue on amounts credited to any
Individual Account or distributed to any Employee or designated beneficiary pursuant to the Plan. 

        5.5    Purchase of Shares.    The Plan Administrator shall establish one (1) or more Purchase Dates during an
Offering. The initial Purchase Dates shall be the last trading day of each calendar month during an Offering Period. Unless a participating Employee requests a withdrawal of the cash balance in the
Employee's Individual Account prior to a Purchase Date, the cash balance in such Individual Account on each Purchase Date shall be used to purchase the maximum number of whole shares of Common Stock
that may be purchased using such cash balance at the Purchase Price. Any Payroll Contributions accumulated in an Employee's Individual Account that are not sufficient to purchase a full share shall be
retained in such account for any subsequent Purchase Date or Offering Period, subject to earlier withdrawal by the Employee as provided in Article VI. Any other monies remaining in an
Employee's Individual Account after the Purchase Date shall be returned to the Employee or his or her beneficiary (as applicable) in cash, without interest, as soon as practical thereafter. If the
number of shares of Common Stock that Plan participants become entitled to purchase under the Plan 

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is
greater than the shares of Common Stock remaining available under the Plan, the available shares of Common Stock shall be allocated by the Plan Administrator among such participants in such manner
as the Plan Administrator determines is fair and equitable, in its good faith discretion. 

        5.6    Purchase Price.    The purchase price per share of Common Stock (the "Purchase
Price") to be paid by each participating Employee in a given Offering shall be an amount (rounded to the nearest cent) equal to ninety-five percent (95%) of the
Fair Market Value of a share of Common Stock on the Purchase Date. 

        5.7    Change in Employment Status Due to Death, or Disability.    Upon a Terminating Event resulting from the
participating Employee's death or Disability, the Employee, or, in the case of death, the Employee's beneficiary (as defined in Section 9.4) shall have the right to elect, by written notice
given to the Plan Administrator prior to the next following Purchase Date: 

        (a)   to
withdraw all of the cash (without interest) and Common Stock credited to such Employee's Individual Account under the Plan, or 

        (b)   to
purchase the number of full shares of Common Stock which the balance in the Employee's Individual Account will purchase at the Purchase Date next following the date
of such Employee's Terminating Event; provided that such Purchase Date is no later than ninety (90) days after such Employee's Terminating Event. 

If
the Plan Administrator does not receive written notice of the election pursuant to this Section 5.7 at least ten (10) days prior to the first Purchase Date following the Employee's
Terminating Event, the Employee or beneficiary, as the case may be, shall be treated as having elected to withdraw the amount credited to the Employee's Individual Account. 

        5.8    Use of Proceeds.    Proceeds from the sale of shares of Common Stock pursuant to Purchase Rights shall
constitute general funds of the Company. 

 ARTICLE VI  

 DEDUCTION CHANGES; PLAN WITHDRAWALS  

        6.1    Deduction Changes.    Once an Employee has authorized Payroll Contributions for an Offering Period, the
Employee may change the selected rate of Payroll Contributions by written notice to the Plan Administrator. Any such change shall be given effect as soon as administratively practicable after the date
such notice is received by the Plan Administrator, but not earlier than the commencement of the immediately following Purchase Period. The Plan Administrator may, in its discretion, in a fair and
equitable manner, limit the number of Employees who change their selected rate of Payroll Contributions during any Offering Period. Unless the Plan Administrator otherwise determines, if an Employee
ceases to make Payroll Contributions during an Offering Period at any time prior to a Terminating Event, any cash balance then held in the Employee's Individual Account shall automatically be
distributed to such Employee as soon as practical after the effective date of such cessation. The Plan Administrator may decrease an Employee's rate of Payroll Contributions, but not below zero
percent, at any time during an Offering Period to the extent necessary to comply with Section 423(b)(8) of the Code or Section 5.4 of the Plan. 

        6.2    Withdrawals During Employment.    An Employee may at any time (subject to such notice requirements as the Plan
Administrator may prescribe), and for any reason, cease participation in the Plan and withdraw all or any portion of the Common Stock and cash, if any, in his or her Individual Account pursuant to
Article VIII. The Employee may thereafter recommence participation in any succeeding Offering Period following completion of a new enrollment pursuant to Section 5.3. 

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 ARTICLE VII  

 EVIDENCE OF SHARE OWNERSHIP  

        Unless and until distributed to an Employee (i) at the Employee's request, (ii) at the discretion of the Plan
Administrator or (iii) in connection with the Employee's Terminating Event, all shares of Common Stock acquired pursuant to the Plan shall be held by the Custodian. While maintained by the
Custodian, all shares of Common Stock shall be registered in book entry form and/or held in the name of the Custodian or its nominee, or in street name. The Company shall cause shares of Common Stock
to be registered in the name of an Employee who is to receive a distribution of shares pursuant to Article VIII as soon as practical following the event giving rise to such distribution under
such Article VIII. Unless, and solely to the extent that, the Plan Administrator shall adopt procedures to permit exceptions to this requirement, such shares of Common Stock issued under the
Plan may be registered only in the name of the Employee. 

 ARTICLE VIII  

 WITHDRAWALS AND DISTRIBUTIONS  

        All or a portion of the Common Stock allocated to an Employee's Individual Account may be withdrawn by such Employee or his or her
beneficiary under Section 9.4 at any time. Except as otherwise provided in Section 5.7, upon a Terminating Event or termination of the Plan under Section 9.6, all monies remaining
in the Employee's Individual Account shall be distributed to the Employee or his or her beneficiary (as applicable) in cash (without interest), and all shares of Common Stock held in the Employee's
Individual Account shall be distributed to the Employee or his or her beneficiary (as applicable) as soon as practical thereafter. All fractional shares (if any) shall be paid in cash based on the
average sale price of such shares sold on behalf of Employees and their beneficiaries on the day of such sales. 

 ARTICLE IX  

 MISCELLANEOUS PROVISIONS  

        9.1    Withholding.    The Company shall have the right and power to deduct from all payments or distributions
hereunder, or require an Employee or beneficiary to remit promptly upon notification of the amount due, an amount (which may, if permitted by the Plan Administrator, include shares of Common Stock) to
satisfy any federal, state, local or foreign taxes or other obligations required by law to be withheld with respect to any purchase of shares of Common Stock hereunder or any disposition of such
shares. The Company may defer delivery of Common Stock until such withholding requirements are satisfied. The Plan Administrator may, in its discretion, permit an Employee or beneficiary to elect,
subject to such conditions as the Plan Administrator shall impose, to have a number of whole (or, at the discretion of the Plan Administrator, whole and fractional) shares of Common Stock otherwise
issuable under the Plan withheld that, based on their Fair Market Value on the date immediately preceding the date of exercise, is a sufficient number, but not more than is required, to satisfy the
withholding tax obligations. 

        9.2    Rights Not Transferable.    No rights under the Plan may be alienated, including but not limited to sold,
transferred, pledged, assigned, or otherwise hypothecated, other than by will or by the laws of descent and distribution, and any attempt to alienate in violation of this Section 9.2 shall be
null and void. Rights under the Plan are exercisable during an Employee's lifetime only by such Employee. 

        9.3    Employee Interest.    An Employee shall have no interest as a stockholder of the Company, including voting or
dividend rights, by virtue of the Employee's participation in the Plan until the date shares of Common Stock are purchased by such Employee in accordance with the Plan. 

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        9.4    Designation of Beneficiary.    Each participating Employee may file a written designation of a
beneficiary who is to receive any shares of Common Stock and/or cash under the Plan following the Employee's death. Each designation made hereunder shall revoke all prior designations by the same
Employee with respect to all of the Employee's unpaid benefits under the Plan (including, solely for purposes of the Plan, any deemed designation prescribed by rules established by the Plan
Administrator), shall be in a form and submitted in a manner prescribed by the Plan Administrator, and shall be effective only when received by the Plan Administrator in writing (or electronic
equivalent recognized by the Plan Administrator) during the Employee's lifetime. In the absence of any such effective designation (including a deemed designation), benefits remaining unpaid at the
Employee's death shall be paid to or exercised by the Employee's surviving spouse, if any, or otherwise to or by the Employee's estate. Upon the death of a participating Employee and upon receipt by
the Plan Administrator of proof of identity and existence at the participating Employee's death of a beneficiary validly designated by the Employee under the Plan, the Plan Administrator shall deliver
to such beneficiary any shares of Common Stock and/or cash credited to the deceased Employee's Individual Account. No beneficiary shall, prior to the death of a participating Employee by whom the
beneficiary has been designated, acquire any interest in any Common Stock or cash credited to a participating Employee under the Plan. 

        9.5    Adjustments Due to Change in Capitalization.    In the event of a stock dividend, stock split, reverse stock
split, share combination, or recapitalization or similar event affecting the capital structure of the Company, or a merger, amalgamation, consolidation, acquisition of property or shares, separation,
spinoff, other distribution of stock or property (including any extraordinary cash or stock dividend), reorganization, stock rights offering, or liquidation or similar event affecting the Company,
(i) Common Stock credited to each Employee's Individual Account shall be adjusted by the Plan Administrator in the same manner as all other outstanding shares of Common Stock in connection with
such event, (ii) the Plan Administrator shall determine the kind of shares which may be acquired under the Plan after such event, and (iii) the aggregate number of shares of Common Stock
available for grant under Section 5.1 or subject to outstanding Purchase Rights under the Plan and the respective Purchase Prices applicable to outstanding Offerings shall be appropriately
adjusted by the Plan Administrator, in its discretion, and the determination of the Plan Administrator shall be conclusive. Except as otherwise determined by the Plan Administrator, a merger or a
similar reorganization in which the Company does not survive, a liquidation or distribution of all or substantially all of the assets of the Company, or a sale of all or substantially all of the
assets of the Company, shall cause the Plan to terminate and all Common Stock and cash, if any, in the Individual Accounts of participating Employees shall be distributed to each Employee pursuant to
Article VIII as soon as practical unless any surviving entity agrees to assume the obligations hereunder. 

        9.6    Amendment or Termination of the Plan.    The Board or the Committee may, at any time, amend, modify, suspend,
or terminate the Plan, in whole or in part, without notice to or the consent of any Plan participant or Employee to the extent permissible under applicable law;  provided, however, that any amendment which would (i) increase the number of shares available for
issuance under the Plan; (ii) lower the minimum Purchase Price under the Plan; (iii) change the individual award limits; (iv) change the class of employees eligible to participate
in the Plan; or (v) otherwise require stockholder action under any applicable law, regulation or rule, shall be subject to the approval of the Company's stockholders. No amendment,
modification, or termination of the Plan shall materially adversely affect the previously accrued rights of any Employee under the Plan with respect to any Offering Period then in progress or
previously completed without the consent of the Employee, except that upon a termination of the Plan the Offering Period may be ended and unexercised Purchase Rights under the Plan may be cancelled or
exercised, in the Board's or the Committee's discretion. Upon termination of the Plan, all Common Stock and cash, if any, in the Individual Accounts of participating Employees shall be distributed to
each Employee pursuant to Article VIII as soon as practical thereafter. The Board or the Committee may at any time terminate an Offering Period then 

7

 

in
progress and provide, in its discretion, that Employees' then outstanding Individual Account cash balances shall be used to purchase shares of Common Stock pursuant to Article V or
distributed to the applicable Employees pursuant to Article VIII. 

        9.7    Custodial Arrangement.    All cash and Common Stock allocated to an Employee's Individual Account under the
Plan shall be held by the Custodian in its capacity as a custodian for the Employee with respect to such cash and Common Stock. Nothing contained in the Plan, and no action taken pursuant to the Plan,
shall create or be construed to create a trust of any kind, or a fiduciary relationship between the Company (including its officers, the Plan Administrator, the Board or the Committee), the Custodian
and any Employee (including the Employee's beneficiaries), or any other person or entity. 

        9.8    No Constraint on Corporate Action.    Nothing contained in the Plan shall be construed to prevent the Company,
or any other affiliate, from taking any corporate action (including, but not limited to, the Company's right or power to make adjustments, reclassifications, reorganizations or changes of its capital
or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets) which is deemed by it to be appropriate, or in its best
interest, whether or not such action would have an adverse effect on this Plan, or any rights awarded Employees under the Plan. No Employee, beneficiary, or other person, shall have any claim against
the Company or any of its other affiliates as a result of any such action. 

        9.9    Conditions Upon Issuance of Shares.    

        (a)   The
granting of rights to Employees under the Plan and the issuance of shares of Common Stock under the Plan shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 

        (b)   If
at any time the Plan Administrator shall determine, in its discretion, that the listing, registration and/or qualification of shares of Common Stock upon any
securities exchange or under any state, federal or foreign law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the
sale or purchase of such shares hereunder, the Company shall have no obligation to allow the purchase of shares of Common Stock, or to issue or deliver evidence of title for shares issued under the
Plan, in whole or in part, unless and until such listing, registration, qualification, consent and/or approval shall have been effected or obtained, or otherwise provided for, free of any conditions
not acceptable to the Plan Administrator. 

        (c)   If
at any time counsel to the Company shall be of the opinion that any sale or delivery of shares of Common Stock pursuant to the Plan is or may be in the circumstances
unlawful or result in the imposition of excise taxes on the Company under the statutes, rules or regulations of any applicable jurisdiction, the Company shall have no obligation to make such sale or
delivery, or to make any application or to effect or to maintain any qualification or registration under the Securities Act of 1933, as amended, or otherwise with respect to shares of Common Stock or
Purchase Rights under the Plan, and the right to exercise any such Purchase Right shall be suspended until, in the opinion of such counsel, such sale or delivery shall be lawful or will not result in
the imposition of excise taxes on the Company. 

        (d)   The
Plan Administrator may require each person receiving shares of Common Stock in connection with any purchase under the Plan to represent and agree with the Company in
writing that such person is acquiring such shares for investment without a view to the distribution thereof, and/or provide such other representations and agreements as the Plan Administrator may
prescribe. The Plan Administrator, in its absolute discretion, may impose such restrictions on the ownership and transferability of the shares of Common Stock purchasable or otherwise receivable 

8

 

by
any person under the Plan as it deems appropriate. Any certificates evidencing such shares may include any legend that the Plan Administrator deems appropriate to reflect any such restrictions. 

        9.10    Participants Deemed to Accept Plan.    By accepting any benefit under the Plan, each Employee and each person
claiming under or through any such Employee shall be conclusively treated as having indicated their acceptance and ratification of, and consent to, all of the terms and conditions of the Plan and any
action taken under the Plan by the Plan Administrator, the Manager, the Board, the Committee or the Company, in accordance with the terms and conditions of the Plan. 

        9.11    Rights of Participants.    

        (a)   Rights or Claims.    No person shall have any rights or claims under the Plan except in accordance with the
provisions of the Plan and any applicable agreement thereunder. The liability of the Company under the Plan is limited to the obligations expressly set forth in the Plan, and no term or provision of
the Plan may be construed to impose any further or additional duties, obligations, or costs on the Company or any other affiliate thereof or the Plan Administrator, the Board or the Committee not
expressly set forth in the Plan. The grant of any Purchase Right under the Plan shall not confer any rights upon the Employee holding such right other than such terms, and subject to such conditions,
as are specified in the Plan. Nothing contained in this Plan shall obligate the Company to continue an Employee's employment with the Company or interfere with the Company's right to terminate an
Employee's employment at any time or for any reason. 

        (b)   Purchase Rights.    Notwithstanding any other provision of the Plan, an Employee's right or entitlement to
purchase any shares of Common Stock under the Plan shall only result from continued employment with an Employer. 

        (c)   No Effects on Benefits.    Compensation received by an Employee under the Plan is not part of such Employee's
normal or expected compensation or salary for any purpose, including calculating other employee benefits under any laws, plans, policies, programs, contracts, arrangements or otherwise. No claim or
entitlement to compensation or damages arises from the termination of the Plan or diminution in value of any shares of Common Stock that may be or are purchased or otherwise received under the Plan. 

        (d)   No Effect on Other Plans.    Neither the adoption of the Plan nor anything contained herein shall affect any
other compensation or incentive plans or arrangements of the Company, or prevent or limit the right of the Company to establish any other forms of incentives or compensation for its employees or grant
or assume options or other rights otherwise than under the Plan. 

        9.12    Term of Plan.    Following adoption of the Plan by the Board, the Plan shall become effective on
February 1, 2009, subject to approval by the stockholders of the Company who are present and represented at a special or annual meeting of stockholders where a quorum is present, which approval
occurs not earlier than one (1) year before, and not later than one (1) year after, the date the Plan is adopted by the Board. If such approval does not occur prior to February 1,
2010, the Plan shall be void and of no effect. The Plan shall terminate on the earlier of (i) the termination of the Plan pursuant to Section 9.6, and (ii) when no more shares are
available for issuance pursuant to the Plan. 

        9.13    Governing Law.    The Plan shall be governed by the laws of the State of Delaware, excluding any conflicts or
choice of law rule or principle that might otherwise refer construction or interpretation of the Plan to the substantive law of another jurisdiction. Employees who participate in the Plan are deemed
to submit to the exclusive jurisdiction and venue of the federal or state courts of the State of Colorado, to resolve any and all issues that may arise out of or relate to the Plan or any related
agreement. 

9

 

        9.14    Administration Costs.    The Company shall bear all costs and expenses incurred in administering the Plan,
including expenses of issuing shares of Common Stock pursuant to the Plan. 

        9.15    Severability.    In the event any provision of the Plan shall be held illegal or invalid for any reason, the
illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 

        9.16    Headings.    The headings and captions appearing herein are inserted only as a matter of convenience. They do
not define, limit, construe, or describe the scope or intent of the provisions of the Plan. 

10

  VENOCO, INC.

2008 EMPLOYEE STOCK PURCHASE PLAN  

Amendment No. 1  

        THIS AMENDMENT No. 1 to the Venoco, Inc. (the "Company") 2008 Employee Stock Purchase Plan (the "Plan") is adopted on December 31, 2008 to
amend the Plan effective as of February 1, 2009. All capitalized terms used but not defined herein shall have the meanings assigned to them in the Plan. 

        WHEREAS,
the Company adopted the Plan on November 18, 2008 to be effective on February 1, 2009; 

        WHEREAS,
the compensation committee (the "Committee") of the Company's board of directors has the authority to amend the Plan pursuant to Section 9.6 of the Plan and the Committee
now desires to amend the Plan. 

        NOW
THEREFORE, the Committee hereby amends the Plan in the following respects: 

	1.
	The
first sentence only of Section 5.4 of the Plan shall be amended in its entirety to read as follows: 

        "5.4  Employee Contributions. An Individual Account shall be established for each participating Employee to which shall be credited the
amount of any Payroll Contributions, and the number of shares of Common Stock (including fractional shares) that are purchased by such Employee pursuant to the terms of the Plan." 

	2.
	Section 5.5
of the Plan shall be amended in its entirety to read as follows: 

        "5.5
Purchase of Shares. The Plan Administrator shall establish one (1) or more Purchase Dates during an Offering. The initial
Purchase Dates shall be the last trading day of each calendar month during an Offering Period. Unless a participating Employee requests a withdrawal of the cash balance in the Employee's Individual
Account prior to a Purchase Date, the cash balance in such Individual Account on each Purchase Date shall be used to purchase the number of shares of Common Stock (including fractional shares) that
may be purchased using such cash balance at the Purchase Price. Any Payroll Contributions remaining in an Employee's Individual Account after the Purchase Date shall be returned to the Employee or his
or her beneficiary (as applicable) in cash, without interest, as soon as practical thereafter. If the number of shares of Common Stock that Plan participants become entitled to purchase under the Plan
is greater than the shares of Common Stock remaining available under the Plan, the available shares of Common Stock shall be allocated by the Plan Administrator among such participants in such manner
as the Plan Administrator determines is fair and equitable, in its good faith discretion."  

	3.
	Section 5.7(b)
of the Plan shall be amended in its entirety to read as follows: 

        "(b)
to purchase the number of shares of Common Stock (including fractional shares) which the balance in the Employee's Individual Account will purchase at the Purchase Date next
following the date of such Employee's Terminating Event; provided that such Purchase Date is no later than ninety (90) days after such Employee's
Terminating Event."  

	4.
	Pursuant
to Section 9.6 of the Plan, this Amendment was adopted by the Committee on December 31, 2008, to be effective as of February 1,
2009. If there is any inconsistency between the terms of the Plan and this Amendment, the terms of this Amendment shall control. All other terms and conditions of the Plan shall remain in full force
and effect. 

*
* * 

 

        IN
WITNESS WHEREOF, the Company, by its duly authorized officer, has executed this Amendment No. 1 to the 2008 Employee Stock Purchase Plan on January 5, 2008. 

					
	 	 	VENOCO, INC.

A Delaware corporation
	

 	
 	
/s/ TIMOTHY M. MARQUEZ

 
	 	 	By:	 	Timothy M. Marquez
	 	 	Its:	 	Chief Executive Officer

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 Exhibit 10.8.4  

 
 

  VENOCO, INC.
  AMENDED AND RESTATED 2005 STOCK INCENTIVE PLAN    
    

Notice of Stock Award  

        You have been granted a right to acquire restricted Common Stock of the Company (the "Stock Award"), subject to the terms and conditions of this Notice of Stock
Award (the "Notice"), the Venoco, Inc. Amended and Restated 2005 Stock Incentive Plan (the "Plan"), and the Stock Award Agreement (the "Agreement") attached hereto. Unless otherwise defined
herein, all terms used in this Notice that are defined in the Plan shall have the meaning as defined in the Plan. 

			
	Name and Address of Participant:	 	 
	
Total Number of Shares of Common Stock Granted (the "Shares"):	
 	

 
	
Purchase Price Per Share:	
 	

 
	
Fair Market Value Per Share:	
 	

 
	
Date of Grant:	
 	

 
	
Vesting Schedule:	
 	
Subject to the Participant's Continuous Service and other limitations set forth in this Notice, the Agreement and the Plan, the Shares shall vest in accordance with the terms set forth in Exhibit A to the
Agreement. Notwithstanding the foregoing, if the Participant's Continuous Service is terminated by: (i) the Company for reasons other than cause or "Misconduct" (the latter of which is defined in the applicable employment agreement between the
Participant and the Company, if any), (ii) the Participant's death or Disability, or (iii) a Change of Control of the Company; then the vesting of the Shares shall fully accelerate immediately upon such date.

        By
your signature and the signature of the Company's representative below, you and the Company agree that the Shares granted are governed by the terms and conditions of this Notice, the
Agreement, and the Plan, all of which are attached to and made a part of this document. 

					
	

 	
 	
 VENOCO, INC.
	
 	
 	
By:	
 	
 

  Timothy M. Marquez
 Chief Executive Officer
 

PARTICIPANT ACKNOWLEDGMENT  

        The Participant acknowledges receipt of a copy of the Agreement and the Plan, and represents that he or she is familiar with the
provisions thereof, and hereby accepts the Shares subject to all of the terms and provisions hereof and thereof. The Participant has reviewed this Notice, the Agreement and the Plan in their entirety,
has had an opportunity to obtain the advice of counsel prior to executing this Notice, and fully understands all provisions of this Notice, the Agreement and the Plan. The Participant 

 

hereby
agrees that all questions of interpretation and administration relating to this Notice, the Agreement and the Plan shall be resolved by the Committee. The Participant further agrees to the
venue selection in accordance with Section 16 of the Agreement. The Participant further agrees to notify the Company upon any change in the residence address indicated in this Notice. 

        The
Participant further acknowledges and fully understands that he or she generally has the right to vote the Shares from the Date of Grant, even when such Shares are subject to a risk
of forfeiture as set forth in Section 4 of the Agreement. 

			
	 	 	  

  [            ]
	

 	
 	

  Dated

2

 

  VENOCO, INC.

AMENDED AND RESTATED 2005 STOCK INCENTIVE PLAN  

Stock Award Agreement  

        1.    Grant of Shares.    Subject to the terms and provisions of the Venoco, Inc.
Amended and Restated 2005 Stock Incentive Plan (the "Plan"), the Notice of Stock Award (the "Notice"), and this Stock Award Agreement (the "Agreement"), the Company hereby grants to the Participant
named in the Notice, the Total Number of Shares of Common Stock Granted (the "Shares"). Unless otherwise defined herein, all terms used in this Agreement that are defined in the Plan shall have the
meaning as defined in the Plan. 

        2.    Purchase Price Per Share.    If the granted Shares are subject to a purchase price, as set forth in the Notice,
the Participant shall have the right to purchase such Shares at the specified purchase price in accordance with such procedures as may be established by the Committee from time to time. 

        3.    Vesting.    The Shares shall vest in accordance with the vesting schedule set forth in the Notice (the "Vesting
Schedule"). 

        4.    Risk of Forfeiture.    

        4.1    General Rule.    The Shares shall initially be subject to a risk of forfeiture. The Participant may not
transfer, assign, encumber, or otherwise dispose of any Shares subject to a risk of forfeiture other than in accordance with the Notice, Agreement and the Plan. If the Participant transfers any such
Shares in accordance with the terms of the Notice, Agreement and the Plan, then this Section 4 shall apply to the transferee to the same extent as to the transferor. 

        4.2    Lapse of Risk of Forfeiture.    The risk of forfeiture shall lapse as the Participant vests in the Shares in
accordance with the Vesting Schedule. 

        4.3    Forfeiture of Shares.    The Shares subject to a risk of forfeiture shall automatically be forfeited and
immediately returned to the Company upon the Participant's termination of Continuous Service; provided that if any such Shares were purchased by the Participant, then upon the Participant's
termination of Continuous Service, the Company shall have the right to repurchase such Shares at the original price paid by the Participant at any time during the 90-day period following
the date of the Participant's termination of Continuous Service. The certificates evidencing such Shares shall have stamped on them a special legend referring to the Company's right of repurchase. 

        4.4    Vesting if Sale Prohibited by Insider Trading Policy.    The Company has established an insider trading policy
(as such policy may be amended from time to time, the "Policy") relative to trading while in possession of material, undisclosed information. The Policy prohibits officers, directors, employees, and
consultants of the Company and its subsidiaries from trading in securities of the Company during certain "Blackout Periods" as described in the Policy. If a scheduled vesting date for Shares falls on
a day during such a Blackout Period, then the Shares that would otherwise have vested on such date shall not vest on such date, but shall instead vest, provided the Participant remains in Continuous
Service with the Company, on the second business day after the last day of the Blackout Period applicable to the Shares. 

        5.    Transfer Restrictions.    The Shares issued to the Participant hereunder may not be sold, transferred by gift,
pledged, hypothecated, or otherwise transferred or disposed of by the Participant prior to the date when the Shares become vested pursuant to the Vesting Schedule. Any attempt to transfer Shares in
violation of this Section 5 shall be null and void and shall be disregarded. 

        6.    Escrow of Shares.    For purposes of facilitating the enforcement of the provisions of this Agreement, the
Participant agrees, immediately upon receipt of the certificate(s) for the Shares, to 

1

 

deliver
such certificate(s), together with an Assignment Separate from Certificate in the form attached hereto as Exhibit B, executed in blank by
the Participant with respect to each such stock certificate, to the Secretary or Assistant Secretary of the Company, or their designee, to hold in escrow for so long as such Shares have not vested
pursuant to the Vesting Schedule, with the authority to take all such actions and to effectuate all such transfers and/or releases as may be necessary or appropriate to accomplish the objectives of
this Agreement in accordance with the terms hereof. The Participant hereby acknowledges that the appointment of the Secretary or Assistant Secretary of the Company (or their designee) as the escrow
holder hereunder with the stated authorities is a material inducement to the Company to make this Agreement and that such appointment is coupled with an interest and is accordingly irrevocable. The
Participant agrees that such escrow holder shall not be liable to any party hereto (or to any other party) for any actions or omissions unless such escrow holder is grossly negligent relative thereto.
The escrow holder may rely upon any letter, notice or other document executed by any signature purported to be genuine and may resign at any time. Upon the vesting of Shares, the escrow holder will,
without further order or instruction, transmit to the Participant the certificate evidencing such Shares, subject, however, to satisfaction of any withholding obligations provided in Section 9,
below. 

        7.    Additional Securities.    Any securities or cash received (other than a "Regular Dividend," as defined in
Section 8, below) as the result of ownership of the Shares (the "Additional Securities"), including, but not by way of limitation, warrants, options and securities received as a stock dividend
or stock split, or as a result of a recapitalization or reorganization or other similar change in the Company's capital structure, shall be retained in escrow in the same manner and subject to the
same conditions and restrictions as the Shares with respect to which they were issued, including, without limitation, the Vesting Schedule. The Participant shall be entitled to direct the Company to
exercise any warrant or option received as Additional Securities upon supplying the funds necessary to do so, in which event the securities so purchased shall constitute Additional Securities, but the
Participant may not direct the Company to sell any such warrant or option. If Additional Securities consist of a convertible security, the Participant may exercise any conversion right, and any
securities so acquired shall constitute Additional Securities. In the event of any change in certificates evidencing the Shares or the Additional Securities by reason of any recapitalization,
reorganization or other transaction that results in the creation of Additional Securities, the escrow holder is authorized to deliver to the issuer the certificates evidencing the Shares or the
Additional Securities in exchange for the certificates of the replacement securities. 

        8.    Distributions.    The Company shall disburse to the Participant all Regular Dividends with respect to the Shares
and Additional Securities, whether vested or otherwise, less any applicable withholding obligations. For purposes of Sections 7 and 8, the term Regular Dividends means any distribution of cash
or property, other than securities that are considered to be received as a result of a sale or exchange of the Shares for purposes of the Code. 

        9.    Taxes.    

        9.1    Section 83(b) Election.    If the Participant makes a timely election pursuant to Section 83(b)
of the Code or similar provision of state law (collectively, an "83(b) Election"), the Participant will be required to report as taxable compensation income an amount equal to the fair market value of
the Shares when received (determined without regard to any forfeiture condition other than a condition that that by its terms will never lapse) reduced by the price paid for the Shares (if any). In
that case, the Participant must immediately pay the Company the amount necessary to satisfy any applicable United States federal, state, local or non-U.S. income and employment tax
withholding obligations. If the Participant does not make a timely 83(b) Election, the Participant will instead be taxable on the fair market value of the shares (determined without regard to any
forfeiture condition other than a condition that that by its terms will never lapse), reduced by the price paid for the Shares (if any), when and as the forfeiture conditions with 

2

 

respect
to the Shares lapse, or, if later, when a sale of the Shares could not subject the Participant to suit under Section 16(b) of the Securities Act of 1934. In that case, the Participant
must, as Shares shall vest or at the time withholding is otherwise required by any Applicable Law, pay the Company the amount necessary to satisfy any applicable United States federal, state, local or
non-U.S. income and employment tax withholding obligations. In the event the Participant determines to make an 83(b) Election (a form of which is attached hereto as Exhibit C), the
Participant hereby represents that he or she understands (i) the contents and requirements of the 83(b) Election, (ii) the application of Section 83(b) to the receipt of the
Shares by the Participant pursuant to this Agreement, (iii) the nature of the election to be made by the Participant under Section 83(b), (iv) the effect and requirements of the
83(b) Election under relevant state and local tax laws, (v) that the 83(b) Election must be filed with the Internal Revenue Service office with which the Participant files his or her tax return
within thirty (30) days following the date of this Agreement, and (vi) that the Participant must submit a copy of such election to the Company and with his or her federal tax return for
the calendar year in which the date of this Agreement falls. THE PARTICIPANT IS RESPONSIBLE FOR OBTAINING TAX ADVICE FROM THE PARTICIPANT'S OWN TAX ADVISOR CONCERNING THE TAX CONSEQUENCES OF ACQUIRING
THE SHARES AND OF MAKING, OR NOT MAKING, THE SECTION 83(B) ELECTION. THE PARTICIPANT IS SOLELY RESPONSIBLE FOR MAKING THE SECTION 83(B) ELECTION IF HE OR SHE CHOOSES TO DO SO. 

        9.2    Tax Liability.    The Participant is ultimately liable and responsible for all taxes owed by the Participant in
connection with the grant of the Shares, regardless of any action the Company or any Affiliate takes with respect to any tax withholding obligations that arise in connection with the grant of such
Shares. Neither the Company nor any Affiliate makes any representation or undertaking regarding the treatment of any tax withholding in connection with the grant, vesting or the subsequent sale of
Shares. The Company and its Affiliates do not commit and are under no obligation to structure the grant of the Shares to reduce or eliminate the Participant's tax liability. 

        9.3    Payment of Withholding Taxes.    Prior to any event in connection with the Shares
(e.g., vesting) that the Company determines may result in any tax withholding obligation, whether United States federal, state, local or
non-U.S., including any employment tax obligation, the Participant must arrange
for the satisfaction of the minimum amount of such tax withholding obligation in accordance with Section 10(g) of the Plan, but only to the extent permitted by the Committee in its sole and
absolute discretion. 

        10.    Stop-Transfer Notices.    In order to ensure compliance with the restrictions on transfer set forth
in this Agreement, the Notice or the Plan, the Company may issue appropriate "stop transfer" instructions to its transfer agent, if any, and, if the Company transfers its own securities, it may make
appropriate notations to the same effect in its own records. 

        11.    Refusal to Transfer.    The Company shall not be required (i) to transfer on its books any Shares that
have been sold or otherwise transferred in violation of any of the provisions of this Agreement or (ii) treat as owner of such Shares or to accord the right to vote or pay dividends to any
purchaser or other transferee to whom such Shares shall have been so transferred. 

        12.    Restrictive Legends.    The certificates evidencing the Shares and Additional Shares shall bear legends
substantially equivalent to the following: 

"THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE RESTRICTED BY THE TERMS OF THAT CERTAIN STOCK AWARD AGREEMENT BETWEEN VENOCO, INC. (THE "COMPANY") AND THE NAMED STOCKHOLDER. THE SHARES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO REPURCHASE BY THE COMPANY OR FORFEITURE ON THE TERMS SET FORTH IN, AND MAY BE TRANSFERRED ONLY IN 

3

 

ACCORDANCE
WITH SUCH AGREEMENT, A COPY OF WHICH IS ON FILE WITH THE SECRETARY OF THE COMPANY." 

        13.    Entire Agreement/Governing Law.    The Notice, this Agreement, and the Plan constitute the entire contract
between the parties hereto with regard to the subject matter hereof. They supersede any other agreements, representations, or understandings (whether oral or written and whether express or implied)
that relate to the subject matter hereof. These agreements are to be construed in accordance with and governed by the internal laws of the State of Delaware without giving effect to any choice of law
rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Delaware to the rights and duties of the parties. Should any provision of this Notice
or this Agreement be determined to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable. 

        14.    Construction.    The captions used in the Notice and this Agreement are inserted for convenience and shall not
be deemed a part of the Shares for construction or interpretation. Except when otherwise
indicated by the context, the singular shall include the plural and the plural shall include the singular. Use of the term "or" is not intended to be exclusive, unless the context clearly requires
otherwise. 

        15.    Administration and Interpretation.    Any question or dispute regarding the administration or interpretation of
the Notice, the Plan or this Agreement shall be submitted by the Participant or by the Company to the Committee. The resolution of such question or dispute by the Committee shall be final and binding
on all persons. 

        16.    Venue.    The Company, the Participant and the Participant's assignees agree that any suit, action or
proceeding arising out of or related to the Notice, the Plan or this Agreement shall be brought in the United States District Court for the District of Colorado (or should such court lack jurisdiction
to hear such action, suit or proceeding, in a Colorado state court in the City and County of Denver) and that all parties shall submit to the jurisdiction of such court. The parties irrevocably waive,
to the fullest extent permitted by law, any objection the party may have to the laying of venue for any such suit, action or proceeding brought in such court. If any one or more provisions of this
Section 16 shall for any reason be held invalid or unenforceable, it is the specific intent of the parties that such provisions shall be modified to the minimum extent necessary to make it or
its application valid and enforceable. 

        17.    Notices.    Any notice required or permitted hereunder shall be given in writing and shall be deemed
effectively given upon personal delivery, upon deposit for delivery by an internationally recognized express mail courier service or upon deposit in the United States mail by certified mail (if the
parties are within the United States), with postage and fees prepaid, addressed to the other party at its address as shown in these instruments, or to such other address as such party may designate in
writing from time to time to the other party. 

*
* * * * 

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