Document:

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                                                                    EXHIBIT 10.1

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                         A.C. Moore Arts & Crafts, Inc.
                                   401(k) Plan
                            Summary Plan Description

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                                TABLE OF CONTENTS

INTRODUCTION TO YOUR PLAN                                                3
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GENERAL INFORMATION ABOUT YOUR PLAN                                      4
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ELIGIBILITY AND PARTICIPATION                                            5
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   Eligibility                                                           5
   Participation Requirements                                            5
   Entry Date                                                            5

YOUR CONTRIBUTIONS TO THE PLAN                                           5
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   Compensation                                                          5
   Elective Deferrals                                                    5

YOUR EMPLOYER'S CONTRIBUTIONS TO THE PLAN                                6
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   Employer Matching Contributions                                       6

BENEFITS UNDER YOUR PLAN                                                 7
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   Normal Retirement Age                                                 7
   Disability                                                            8
   In-Service Distributions                                              8
   Hardship Withdrawals                                                  8
   Loan Availability                                                     9

STATEMENT OF ERISA RIGHTS                                               13
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CLAIMS PROCEDURES                                                       14
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PENSION BENEFIT GUARANTY CORPORATION                                    15
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                                       2
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                            INTRODUCTION TO YOUR PLAN

Your Employer has instituted this Plan to reward efforts made by Employees who
contribute to the overall success of the Company. The Plan is exclusively for
the benefit of Participants and their Beneficiaries. The purpose of the Plan is
to help you build financial security for your retirement and to help protect you
and your Beneficiaries in the event of your death or Disability.

This Plan is a 401(k) plan. It offers you a built in savings system through
pre-tax payroll deductions. It also offers attractive tax advantages, the
freedom to choose investments according to your needs, the flexibility to change
your investments as your needs change, and a way to build capital for a secure
retirement.

Under the terms of this Plan, you may choose to defer a portion of your current
salary, which your Employer then contributes to the plan on a pre-tax basis.
Contributions are not subject to Federal income tax, and in most cases are also
exempt from state or local income taxes. Since your contributions are not
subject to Federal income tax, your taxable income is reduced.

The laws governing plans like this one contain many provisions that may affect
your retirement. You should contact your Plan Administrator with any questions
about the Plan before you make any decisions related to your retirement. For
specific tax advice, you should contact your tax advisor.

This Summary Plan Description (SPD) summarizes the key features of your Plan,
and your rights, obligations and benefits under the Plan. Some of the statements
made in this SPD are dependent upon this Plan being "qualified", or approved by
the Internal Revenue Service. Please contact your Plan Administrator with any
questions you may have after you have read this summary.

Every effort has been made to make this description as accurate as possible.
However, this booklet is not a Plan document. This SPD is not meant to
interpret, extend, or change the provisions of the Plan in any way. The terms of
the Plan are stated in and will be governed in every respect by the Plan
document. Your right to any benefit depends on the actual facts and the terms
and conditions of the Plan document, and no rights accrue by reason of any
statement in this summary. A copy of the Plan document is available at the
principal office of your Employer for inspection. You, your Beneficiaries, or
your legal representatives may request to inspect the Plan Document at any
reasonable time.

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                       GENERAL INFORMATION ABOUT YOUR PLAN

Employer/Plan Sponsor                A. C. Moore Arts & Crafts, Inc.
and Plan Administrator               500 University Court
                                     Blackwood, NJ  08012
                                     (609) 228-6700

Employers Tax ID Number:             22-3527763

Plan Trustee(s):                     Merrill Lynch Trust Company
                                     300 Davidson Avenue
                                     2nd Floor West
                                     Somerset, New Jersey  08873

Plan Name:                           A.C. Moore Arts & Crafts, Inc. 401(k) Plan

Plan Number:                         001

Plan Effective Date:                 January 1, 1999

Employer Tax Year:                   January 1st through December 31st
Plan Year End:                       December 31st

Type of Recordkeeping:               Contract Administration

Type of Plan:                        401(k)

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The Plan Administrator keeps the records for the Plan, and is responsible for
the interpretation and administration of the Plan. All Plan Records will be kept
on the basis of the Plan Year. The Plan Administrator may hire a third party
record keeper to perform the administrative functions of the Plan. If you have
questions about the Plan you should write to the Plan Administrator. The Plan
Administrator and the Trustees are designated as the Agents for Service of Legal
Process.
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                                       ELIGIBILITY AND PARTICIPATION

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Eligibility:                                     All Employees of the Employer and Participating Affiliates are
                                                 eligible to participate in this Plan, except non-resident aliens,
                                                 and Employees who are members of a union who bargained separately
                                                 for retirement benefits during negotiations.

Participating Affiliates:                        A.C. Moore, Inc.; Blackwood Assets, Inc.; and Moorestown Finance,
                                                 Inc

Participation Requirements (401(k)):             If you are not excluded from participation due to the above, you
                                                 will become eligible to participate in the Plan upon attaining age
                                                 21 and completing one (1) Year of Service.

                                                 A "Year of Service" is a twelve consecutive month period,
                                                 beginning on your date of hire, during which you complete 1,000
                                                 "Hours of Service". An Hour of Service is any hour for which you
                                                 are paid or entitled to payment.

                                                 If you fail to complete 1,000 Hours of Service during your initial
                                                 twelve months of employment, you may still complete a Year of
                                                 Service by being credited with 1,000 Hours of Service during any
                                                 subsequent twelve month period ending on your employment
                                                 anniversary date.

                                                 If you do not meet the eligibility requirements, you will not be
                                                 eligible to participate in this Plan.

Entry Date:                                      You will become a Participant in the Plan on the Entry Date
                                                 coincident with or next following the date you meet the
                                                 participation requirements. The Entry Dates for this Plan are the
                                                 first day of each month.

                                      YOUR CONTRIBUTIONS TO THE PLAN

Compensation:                                    Compensation means the total salary or wages paid to you as shown
                                                 on your W-2, to a maximum of $160,000*.

                                                 For the first year you participate in the Plan, only
                                                 Compensation earned after your Entry Date will be used to
                                                 determine your share of your Employer's Contribution.

                                                 * Adjusted periodically for cost of living by the IRS.

Elective Deferrals:                              Up to 20% of Annual Compensation, to a maximum of $10,000* per
                                                 calendar year.

                                                 * Adjusted periodically for cost of living by the IRS.
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<S>                                             <C>
                                                 This limitation is an aggregate limit that applies to all
                                                 deferrals you make to this Plan and to any other elective deferral
                                                 plan, including tax sheltered annuity contracts, simplified
                                                 pension plans, or other 401(k) plans.

Making and Modifying 401(k) Elections:           You may discontinue deferrals at any time, upon written notice to
                                                 the Plan Administrator.  Your instructions to cease Elective
                                                 Deferrals will be implemented as of the first payroll period
                                                 following the date you notified your Plan Administrator.

                                                 To resume your Elective Deferral Contribution, you must provide
                                                 written notice to your Plan Administrator, and wait until the next
                                                 monthly interval.

                                                 You may increase or decrease your Elective Deferral Contribution
                                                 Percentage at monthly intervals throughout the Plan Year.

Investment of Contributions:                     As a Participant in this Plan, you direct the investment of your
                                                 account(s).  Your Plan provides a menu of investment options from
                                                 which you may select your investments. You may modify your
                                                 investment elections, transfer existing account balances, and
                                                 obtain information regarding your investments on a daily basis.
</TABLE>

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You should be aware that your investment decisions will ultimately affect the
retirement benefits to which you will become entitled. Your Employer and the
Plan Trustee(s) cannot provide you with investment advice, nor are they
obligated to reimburse any participant for any investment loss that may occur as
a result of his or her investment decisions. There is no guarantee that any of
the investment options available in this Plan will retain their value or
appreciate.
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                                     YOUR EMPLOYER'S CONTRIBUTIONS TO THE PLAN

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Employer Matching Contributions:                 Your Employer may make a contribution to the Plan known as a
                                                 401(k) Matching Contribution. Your Employers 401(k) Matching
                                                 Contribution, if any, will be an amount not to exceed 100% of the
                                                 first 6% of your Compensation contributed as an Elective Deferral
                                                 subject to a maximum of $1,500.  In 1999, your employer will
                                                 contribute 25% of the first 6% of your contribution to a maximum
                                                 of $1,500.

Eligibility for Employer Matching                Any Participant who makes an Elective Deferral Contribution will
Contributions:                                   be eligible to receive an Employer Matching Contribution.

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<S>                                             <C>
Vesting:                                         Vesting means that for each Year of Service you complete you
                                                 become entitled to all or a portion of your Employer Contributions
                                                 Account(s). For purposes of determining your vested account
                                                 balance, Years of Service prior to the effective date of the Plan
                                                 will not be counted.

                                                 For example, if the effective date of the Plan is January 1, 1999
                                                 and you were employed as of that date, you will have completed a
                                                 Year of Service for vesting purposes on each January 1st for which
                                                 you remain employed. If you were employed after January 1, 1999,
                                                 you will be credited with a Year of Service for vesting purposes
                                                 on each anniversary of your Date of Hire.

Vesting of Elective Deferrals:                   You are always 100% vested in your Elective Deferrals.

                             Vesting Schedule for Employer 401(k) Matching Contributions

                             Years of Service                        Vested Percentage
                                     1                                      0%
                                     2                                    33 1/3%
                                     3                                    66 2/3%
                                     4                                     100%

Year of Service for Vesting Defined:             You will have completed a Year of Service for vesting purposes on
                                                 each anniversary of your date of hire with your Employer.
</TABLE>

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If this is an amended or restated Plan, your vested percentage cannot be less
than your vested percentage prior to the amendment or restatement of this Plan.
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Forfeitures:                                     If you terminate service prior to being fully vested in your
                                                 Employer 401(k) Matching Contribution Account, you forfeit the
                                                 amount in which you are not vested.  Forfeitures will be used to
                                                 reduce future Employer 401(k) Matching Contributions to the Plan.

                                           BENEFITS UNDER YOUR PLAN

Normal Retirement Age:                           Your Normal Retirement Age is age 65.

                                                 You are 100% vested in your Employer Contribution Account(s) upon
                                                 your Normal Retirement Date.

Early Retirement Age:                            Your Early Retirement Age is the attainment of age 55.

                                                 You are 100% vested in your Employer Contribution Account(s) upon
                                                 your Early Retirement Date.
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Disability:                                      You will be considered to be disabled if your injury or medical
                                                 condition causes you to be unable to engage in any substantial
                                                 gainful activity for a continuous period of at least twelve
                                                 months. Benefit payments will begin as soon as feasible after your
                                                 Disability Retirement Date.

                                                 You are 100% vested in your Employer Contribution Account(s) if
                                                 you are deemed disabled.

In-Service Distributions:                        As an active Participant in the Plan, you may, upon attaining age
                                                 59 1/2, submit a written application to the Plan Administrator to
                                                 withdraw all or a portion of your vested account balance.

Hardship Withdrawals                             As an active Participant in the Plan, you may submit a written
                                                 application to the Plan Administrator for a hardship withdrawal,
                                                 if you are experiencing an immediate and heavy financial need.

Events Which Qualify For A Hardship              1. To cover medical expenses incurred by you, your spouse or your
Distribution                                     dependents;

                                                 2. For the purchase of a principal residence (excluding mortgage
                                                 payments);

                                                 3. For the payment of tuition and related educational fees for
                                                 the next twelve months of post-secondary education for you, your
                                                 spouse, your children or your dependents;

                                                 4. For the payment of amounts necessary to prevent eviction from
                                                 or foreclosure on your principal residence.

                                                 All other forms of financial assistance must be explored and
                                                 exhausted before a Hardship
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If you take a hardship withdrawal, your Elective Deferral Contributions will be
suspended for a period of twelve months following the date of the withdrawal.
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<S>                                              <C>
Tax Consequences for Receiving A Distribution    Distribution or withdrawal of your vested account balance may be
or Withdrawal:                                   subject to ordinary income taxes or early distribution penalties.
                                                 Please consult your tax advisor prior to taking any distribution
                                                 or withdrawal.
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<S>                                             <C>
Loan Availability:                               An active Participant in the Plan may request a loan from the
                                                 Plan. A loan allows you to borrow money from your account without
                                                 incurring a penalty.  You must repay the loan with interest, on an
                                                 after tax basis, usually through payroll deduction.

                                                 Once you request a loan, your Employer is required to approve the
                                                 loan.  After approval, you will receive a check with an attached
                                                 promissory note.  By endorsing the check, you agree to the terms
                                                 and repayment conditions in the promissory note.

                                                 As an active Participant in the Plan, you may request a loan from
                                                 the Plan. The loan amount is available by calling the Voice
                                                 Response System.

Loan Requirements:                               1. Loans are available to all participants in the Plan on a
                                                 uniform and nondiscriminatory basis.

                                                 2. Loans must bear a reasonable rate of interest.

                                                 3. The loan must be adequately secured.

Loan Limitations:                                You may borrow any amount up to 50% of your vested account
                                                 balance.  However, your loan can be no more than $50,000 minus
                                                 your highest outstanding loan amount during the prior 12 months.

Loan Repayments:                                 Repayment of a loan must be made at least quarterly, on an
                                                 after-tax basis, in level payments of principal and interest, and
                                                 repaid within five years, except for the purchase of a primary
                                                 residence.

Tax Consequences of Plan Loans:                  If you fail to make loan repayments when they are due, you may be
                                                 considered to have defaulted on the loan.  Defaulting on a loan
                                                 may be considered a distribution to you from the Plan, resulting
                                                 in taxable income to you and may ultimately reduce your benefit
                                                 from the Plan.

Death Benefits:                                  Your Employer Contribution Account(s) become 100% vested upon your
                                                 death.

                                                 Your Beneficiary will be entitled to receive your account balance.

                                                 If you are married at the time of your death, your surviving
                                                 spouse is your Beneficiary unless:

                                                 o    You elect otherwise in writing (with the consent of your
                                                      spouse);
                                                 o    You establish to the satisfaction of the Plan
                                                      Administrator that your spouse cannot be located.
                                                 o    Your spouse has validly waived any right to the death
                                                      benefit.
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                                                 If you want to designate a Beneficiary other than your spouse, (an
                                                 "alternate Beneficiary") you must do so on a form provided by the
                                                 Plan Administrator.  You may revoke or change this designation at
                                                 any time by filing written notice with the Plan Administrator,
                                                 however, your spouse must consent, in writing, to any alternate
                                                 Beneficiary.  A Notary Public or Plan official must witness your
                                                 spouse's consent.

                                                 It is important that you notify the Plan Administrator of any
                                                 change in your marital status or change in your Beneficiary
                                                 designation.

Distributions Upon Death:                        If death occurs before Retirement Benefits begin, your Beneficiary
                                                 may choose to defer payment, or to receive payment based on the
                                                 following general guidelines:

                                                 o    Payment may be made in the form of a life annuity for
                                                      Participants who transferred money from a prior plan where
                                                      this option was available;

                                                 o    Payment may be made in installments payable in cash or in
                                                      kind, or part in cash and part in kind over a period not to
                                                      exceed your expected future lifetime or the joint expected
                                                      future lifetime (based on actuarial tables) of you and your
                                                      spouse;

                                                 o    The entire sum must be distributed no later than the last
                                                      day of the year of the fifth anniversary of your death, if
                                                      your Beneficiary is not your surviving spouse;

                                                 o    If your Beneficiary is your spouse, payment may be
                                                      postponed until December 31st of the calendar year in which
                                                      you would have attained age 65;

                                                 o    Payment may be made in installments, as described above,
                                                      beginning on or before the December 31st following the year
                                                      in which you die.
</TABLE>

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If death occurs after Retirement Benefits begin, but before your entire
Retirement Benefit has been paid, the remaining portion of your Retirement
Benefit will continue in the same form and for the same period as you originally
elected. In any case, payments will continue to be made at least as rapidly as
such payments were being made prior to your death.
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<S>                                            <C>
                                                 If you fail to designate an alternate Beneficiary, or your
                                                 alternate Beneficiary does not survive you, the benefit payable
                                                 from this Plan as a result of your death will be payable to your
                                                 Surviving Spouse. If you have no Surviving Spouse, the death
                                                 benefit will be paid to your estate.

                                                 If the value of your account is $5,000 or less, death benefits
                                                 will be distributed to your Beneficiary without your Beneficiary's
                                                 consent as soon as practicable following your death.
</TABLE>

                                       10
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<S>                                             <C>
Forms of Benefit:                                The normal form of payment with respect to your vested account
                                                 balance under this Plan is a lump sum.  If your account balance is
                                                 $5,000 or less, you will receive a lump sum distribution as soon
                                                 as feasible following the date you terminated employment.  If your
                                                 account balance is greater than $5,000, you (and your spouse, if
                                                 applicable) must give written consent before the distribution can
                                                 be made.

                                                 An optional form of payment with respect to your vested account
                                                 balance is installments payable in cash or in kind, or part in
                                                 cash and part in kind over a period not to exceed your expected
                                                 future lifetime, or the joint expected future lifetime (based on
                                                 actuarial tables) of you and your spouse.

                                                 If you transferred money from a prior plan, another form of
                                                 benefit may be available.  You should consult with your tax
                                                 advisor regarding those options.

</TABLE>
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You may request that all or part of any taxable distribution you receive from
the Plan, other than an annuity, installments paid over 10 or more years, or
required distributions after age 70 1/2, be rolled over directly from the
Trustees to the trustee or custodian of an eligible retirement plan. For this
purpose, an "eligible retirement plan" includes an individual retirement account
or annuity, or your new employer's qualified plan, if the plan accepts
rollovers. The Plan Administrator will notify you if any amount to be
distributed to you is an eligible rollover distribution. Special tax withholding
rules apply to any portion of the eligible rollover distribution which is not
rolled over directly to an eligible retirement plan.
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<S>                                              <C>
Top-Heavy Defined:                               A plan becomes Top-Heavy when 60% or more of the Plan's assets are
                                                 allocated to Key Employees.  Key Employees are certain owners or
                                                 officers of your Employer.  If the Plan becomes Top-Heavy certain
                                                 rules apply.

Top-Heavy Rules:                                 A minimum contribution will be required to Non-Key Employees.
                                                 This contribution is the lesser of:
                                                 o    three percent (3%) of Compensation; or
                                                 o    the largest percentage of Compensation contributed by the
                                                      Employer on behalf of Key Employees.
                                                 o    If you are a Participant in more than one plan maintained
                                                      by your Employer, you may not be entitled to minimum benefits
                                                      in more than one plan.

Vesting Schedule for Top-Heavy:                  Vesting schedule outlined earlier will apply.

Rollovers or Transfers:                          o    You must submit a written request to your Plan
                                                      Administrator, who will determine whether a rollover or
                                                      transfer is acceptable;

                                                 o    You may make such a contribution to this Plan prior to
                                                      being eligible for the Plan;

                                                 o    Any amount rolled over or transferred to this Plan cannot
                                                      include personal IRA contributions;

                                                 o    Prior to making a rollover or transfer, you should
                                                      consult with your tax advisor.
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<S>                                             <C>
Period of Severance:                             Under the elapsed time method, your Years of Service for vesting
                                                 purposes run from the date you first perform an Hour of Service
                                                 for your Employer until your severance from service date. A Period
                                                 of Severance begins on the earlier of:

                                                 o  The date you quit, retire, are discharged, or die.

                                                          OR

                                                 o  The first anniversary of the first date of a period in
                                                    which you remain absent from service with your Employer (with
                                                    or without pay) for any reason other than quitting, retirement,
                                                    discharge, or death. These reasons include vacation, holiday,
                                                    sickness, disability, leave of absence, or layoff.

                                                 If you are absent on military leave, you will not be considered to
                                                 have a Period of Severance if you return to work within 90 days of
                                                 your release from military duty, or any longer period during which
                                                 your reemployment rights are protected by law.

                                                 If you are on an authorized leave of absence (in accordance with
                                                 standard personnel policies), you will not be considered to have a
                                                 Period of Severance if you return to work immediately upon the
                                                 expiration of such leave of absence.

                                                 If you are on a leave of absence because of maternity or
                                                 paternity, you will not be considered to have a Period of
                                                 Severance until the second anniversary of the first date of your
                                                 leave. For example, if you went on maternity leave on October 1,
                                                 1995, you would not be considered to have severed service with
                                                 your Employer if you returned to work and performed an Hour of
                                                 Service before October 1, 1997. If you did not return to work on
                                                 or before October 1, 1997, you would incur a Period of Severance.

                                                 If you are reemployed after you incur a Period of Severance and
                                                 you were vested when you terminated employment, upon your
                                                 reemployment, you will be immediately eligible for the Plan, and
                                                 you will be vested at the same percentage as when you left.

                                                 If you are reemployed after you incur a Period of Severance and
                                                 you were not vested when you terminated employment, you will lose
                                                 credit for service you completed prior to your termination if your
                                                 absence is five years or longer.

                                                 If you are reemployed within five years after you incur a Period
                                                 of Severance, and you received a full or partial distribution
                                                 (including a "deemed" distribution if you had a $0 account
                                                 balance), you may return as a Participant at the same vested
                                                 percentage as when you left, provided you repay the amount
                                                 distributed to you within five years of the date you are
                                                 reemployed.  After repayment, your account balance will be
                                                 restored to its original amount as though

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<S>                                             <C>

                                                 there had been no distribution, and any amount forfeited when you
                                                 left will be replaced by your Employer.

                                                 If you are reemployed after you incur a five-year Period of
                                                 Severance, you will not be given the opportunity to repay the
                                                 amount distributed to you and your vested percentage will be
                                                 determined based on your Years of Service beginning on your date
                                                 of reemployment.

                                                 If you terminate service prior to becoming a Participant in the
                                                 Plan, you will be treated as a new employee upon your
                                                 reemployment. To participate, you must meet the Eligibility
                                                 Requirements.

Qualified Domestic Relations Orders:             As a general rule, your account balance may not be assigned.  This
                                                 means that your accounts cannot be sold, used as collateral for a
                                                 loan, given away, or otherwise transferred.  In addition, your
                                                 creditors may not attach, garnish or otherwise interfere with your
                                                 account.

                                                 An exception to this general rule is a "qualified domestic
                                                 relations order" or QDRO.  A QDRO is a court order that can
                                                 require the Plan Administrator to pay a portion of your account
                                                 balance to your former spouse, child or other dependent.

Plan Amendment or Termination:                   Your Employer reserves the right to amend the Plan at any time.
                                                 However, no amendment can deprive you of any vested benefits.

                                                 Your Employer also reserves the right to terminate the Plan.  If
                                                 the Plan is terminated, you will be 100% vested in your total
                                                 account balance under the Plan.
</TABLE>

                            STATEMENT OF ERISA RIGHTS

As a Participant in the Plan, you are entitled to certain rights and protection
under the Employee Retirement Income Security Act of 1974 (ERISA). Your Employer
may not fire you or discriminate against you to prevent you from obtaining a
benefit from the Plan or exercising your rights under ERISA.

ERISA provides that all Plan Participants shall be entitled to:

o    Examine, without charge, at your Plan Administrator's office, all Plan
     documents, insurance contracts, if any, and copies of all documents filed
     by your Plan with the U. S. Department of Labor, such as annual reports and
     Plan descriptions.

o    Obtain copies of all Plan documents and other Plan information upon written
     request to your Plan Administrator. Your Plan Administrator may impose a
     reasonable charge for the copies.

o    Receive a summary of the Plan's annual financial report. Your Plan
     Administrator is required by law to provide each Participant with a copy of
     the Plan's Summary Annual Report.

                                       13
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o    Obtain an annual statement telling you whether you have a right to receive
     a benefit under the Plan, and if so, what your benefits would be if you
     stop working for your Employer now. If you do not have a right to a benefit
     under the Plan, the statement must tell you how many years you have to work
     to get a benefit under the Plan. The Plan may require a written request for
     this statement, but it must be provided free of charge.

o    File suit in Federal court if any materials requested are not received
     within 30 days of your request unless the materials were not sent because
     of matters beyond the control of your Plan Administrator. The court may
     require your Plan Administrator to pay you up to $110 per day for each
     day's delay until the materials are received by you.

In addition to creating rights for Plan participants, ERISA imposes obligations
upon the persons who are responsible for the operation of the Plan. These
persons are referred to as "fiduciaries". Fiduciaries must act solely in the
interest of Plan Participants and Beneficiaries and must exercise prudence in
the performance of their plan duties. Fiduciaries who do not comply with ERISA
may be removed and required to make good any losses they have caused the Plan.

If Plan fiduciaries are misusing the Plan's assets, as a Participant in the
Plan, you have the right to file suite in a Federal court or to request
assistance from the U.S. Department of Labor. If you are successful in your
lawsuit, the court may require the other party to pay your legal costs,
including attorney's fees. If you are unsuccessful in your lawsuit, or the court
finds your action frivolous, the court may order you to pay these costs and
fees.

                                CLAIMS PROCEDURES

When you terminate employment, you must complete a form that notifies the Plan
Administrator that you are making a claim for benefits. Your Employer has a
supply of these forms. Ideally this form should be completed on or before your
final day of work. This way, your Employer can send your claim for benefits
right away for processing.

If, after your claim for benefits is processed, you have questions or disagree
with the calculation of your benefit, you must notify the Plan Administrator in
writing. The Plan Administrator will, within 90 days (or within 180 days if
special circumstances exist) notify you in writing of its decision. If your
claim for a Plan benefit is denied in whole or in part, you must receive a
written explanation of the reason for the denial. That notification will
include:

1. How your benefit was calculated;
2. The specific reason that your claim is denied (in whole or in part) if it is
   denied;
3. Specific references to Plan provisions on which the denial is based;
4. A description of any additional material or information necessary for you to
   perfect your claim and an explanation of why such information is necessary;
5. An explanation of the Plan's claim review procedure.

Within 60 days after you receive notice of the denial of part or your entire
claim for benefits, you may file a written appeal with the Plan Administrator.
You may seek representation by an attorney or other representation of your
choosing. You may submit written and oral evidence and arguments in support of
your claim. You may review all relevant documents. The Plan Administrator
generally makes a final decision within 60 days of your appeal. The Plan
Administrator's decision will include the specific reasons for its decision and
specific references to Plan provisions on which the decision is based.

                                       14
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                      PENSION BENEFIT GUARANTY CORPORATION

The type of Plan your Employer has adopted is a defined contribution plan.
Therefore, the Plan is not subject to or insured by the Pension Benefit Guaranty
Corporation (PBGC).

If you have any questions about this statement or about your rights under ERISA,
you should contact the nearest Area Office of the U.S. Department of Labor
Management Services Administration, Department of Labor.

                                       15<PAGE>   1
                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT

                  AGREEMENT by and between Anadarko Petroleum Corporation, a
Delaware corporation (the "Company") and George Lindahl III ("Executive") dated
as of the 19th day of May, 2000.

                  The Company has determined that it is in the best interests of
the Company and its shareholders to assure that Union Pacific Resources Group
Inc., a Utah corporation ("UPR") will have the continued dedication of Executive
pending the merger of the Company, Dakota Merger Corp. and UPR (the "Merger")
pursuant to the Agreement and Plan of Merger dated as of April 2, 2000 (the
"Merger Agreement") and to provide the surviving corporation after the Merger
with continuity of management. Therefore, in order to accomplish these
objectives, the Company and Executive desire to enter into this Agreement.

                  NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1. Effective Date. The "Effective Date" shall mean the effective date of the
Merger.

2. Employment Period. The Company hereby agrees to employ Executive, and
Executive hereby agrees to enter into the employ of the Company subject to the
terms and conditions of this Agreement, for the period commencing on the
Effective Date and ending on the third anniversary thereof (such period, the
"Employment Period").

3. Terms of Employment. (a) Position and Duties. (i) During the Employment
Period, Executive shall serve as the sole Vice Chairman of the Company,
reporting directly to the Chief Executive Officer of the Company, with such
authority, duties and responsibilities as are commensurate with such position
and as may be consistent with such position, which shall include, but not be
limited to, primary responsibility for: (A) operations in Canada and Latin
America; (B) business/corporate development (including mergers, acquisitions and
dispositions); and (C) merger transition and integration of UPR with and into
the Company. During the Employment Period, Executive shall also serve as a
member of the Board of Directors of the Company (the "Board"). Executive's
services hereunder shall be performed in Houston, Texas.

                  (ii) During the Employment Period, and excluding any periods
of vacation and sick leave to which Executive is entitled, Executive agrees to
devote substantially all of Executive's attention and time during normal
business hours to the business and affairs of the Company and, to the extent
necessary to discharge the responsibilities assigned to Executive hereunder, to
use Executive's reasonable best efforts to perform faithfully and efficiently
such responsibilities. During the Employment Period it shall not be a violation
of this Agreement for Executive to (A) serve on corporate, civic or charitable
boards or committees, (B) deliver lectures, fulfill speaking engagements or
teach at educational institutions and (C) manage personal investments, so long
as such activities do not significantly interfere with the performance of
Executive's responsibilities as an employee of the Company in accordance with
this Agreement. It is expressly understood and agreed that to the extent that
any such activities have been conducted by Executive prior to the Effective
Date, the continued conduct of such activities (or the conduct of activities
similar in nature and scope thereto) subsequent to the Effective Date shall not
there-
<PAGE>   2
after be deemed to interfere with the performance of Executive's
responsibilities to the Company.

             (b)  Compensation. (i) Base Salary and Guaranteed Annual
Compensation. During the Employment Period, Executive shall receive an annual
base salary ("Annual Base Salary") of $800,000. The Base Salary shall be paid to
Executive in accordance with the Company's usual payroll practices.

                  (ii) Annual Bonus. During the Employment Period, Executive
shall be eligible to receive an annual cash bonus ("Annual Bonus") on the same
basis as the most senior executives of the Company other than the Chief
Executive Officer ("Peer Executives").

                  (iii) Guaranteed Annual Compensation. During the Employment
Period, the sum of the Annual Base Salary and the Annual Bonus that Executive
shall receive per year will be at least $1,500,000 (the "Guaranteed Annual
Compensation").

                  (iv) Incentive Awards. On the Effective Date, the Company
shall grant Executive (A) 125,000 shares of restricted common stock of the
Company (the "Restricted Shares"), (B) 125,000 shares of unrestricted common
stock of the Company, and (C) an option to acquire 500,000 shares of the common
stock of the Company (the "Option"), in each case pursuant to the terms of the
Company's stock incentive plans. The Option will have an exercise price per
share equal to the fair market value of the stock subject thereto on the date of
grant (as determined under the terms of the Company's stock incentive plan). The
Option shall remain exercisable until the seventh anniversary of the date of
grant. Except as otherwise provided herein, the Option shall vest, and
restrictions on the Restricted Shares shall lapse, in three equal installments
on the last day of the first, second, and third years of the Employment Period.

                  (v) Retirement Benefits. (A) Upon termination of employment
for any reason, Executive shall be entitled to a retirement benefit calculated
in accordance with the Company Retirement Restoration Plan (the "Restoration
Plan") calculated as if Executive terminated employment at age 57 with 17 years
of credited service and a minimum final average pay of $1,500,000. This
Restoration Plan benefit will be in the form of a single life annuity and shall
not be less than $359,222 per year (before offsets for other qualified or
nonqualified plans pursuant to this Section 3(b)(v)(A)). The Restoration Plan
benefit shall then be reduced by any annuity amounts otherwise payable to
Executive based on his actual age at termination pursuant to (1) any other
qualified retirement plans of UPR or the Company, (2) the Supplemental Pension
Plan for Exempt Salaried Employees of Union Pacific Resources Company and
Affiliates (including any annuity contracts previously secured to provide for a
portion of such benefit) and (3) any other nonqualified retirement plan of UPR
or the Company (each UPR Plan as in effect immediately prior to the Effective
Date) (such reduced benefit, the "Net Retirement Benefit"). Executive may elect
within a reasonable period of time, as determined by the Company, following his
Date of Termination (as defined below) to take this Net Retirement Benefit in
the form of an annuity or an actuarially equivalent lump sum payment upon
termination, or, to the extent agreed to by Executive and the Company,
commencement of such distribution may be deferred pursuant to an agreement
entered into by Executive and the Company prior to Executive's termination of
employment. The amount of such annuity or lump sum payment(s) shall be
determined based on the methods used for calculating such amounts under the
Company's qualified plan in effect as

                                      -2-
<PAGE>   3
of the Date of Termination and based on Executive's actual age at termination. A
sample calculation assuming termination at age 55, age 56 and age 57 is provided
in the attached schedule. The parties agree and acknowledge that Executive has
relied on the methodology set forth in such calculations in entering into this
Agreement.

                                    (B) Upon termination of employment for any
reason, Executive shall also become eligible for lifetime retiree medical
coverage for Executive and Executive's then-current spouse commencing as of the
Date of Termination and such retiree medical coverage shall be in accordance
with that provided to Peer Executives under the Company's retiree medical plan.

                  (vi) Other Employee Benefit Plans. During the Employment
Period, except as otherwise expressly provided herein, Executive shall be
entitled to participate in all employee benefit, welfare and other plans,
practices, policies and programs of the Company on a basis no less favorable to
Executive, in the aggregate, than the benefits provided generally to Peer
Executives.

                  (vii) Expenses. During the Employment Period, Executive shall
be entitled to receive prompt reimbursement for all reasonable business expenses
incurred by Executive in accordance with the Company's usual policies and
practices generally applicable to Peer Executives.

                  (viii) Fringe Benefits. During the Employment Period,
Executive shall receive fringe benefits no less favorable than those provided
generally to Peer Executives.

                  (ix) Relocation. During the Employment Period, Executive shall
receive relocation benefits no less favorable than those provided generally to
Peer Executives; provided, however, that if Executive relocates at the Company's
request prior to the commencement of the Employment Period, such relocation
benefits shall be applicable to expenses incurred in such relocation.

                  (x) Vacation. During the Employment Period, Executive shall be
entitled to paid vacation in accordance with the plans, policies, programs and
practices of the Company and its affiliated companies, on a basis no less
favorable than that applicable generally to Peer Executives.

         4. Termination of Employment. (a) Death or Disability. Executive's
employment shall terminate automatically upon Executive's death during the
Employment Period. If the Company determines in good faith that the Disability
of Executive has occurred during the Employment Period (pursuant to the
definition of Disability set forth below), it may give to Executive written
notice in accordance with Section 11(b) of this Agreement of its intention to
terminate Executive's employment. In such event, Executive's employment with the
Company shall terminate effective on the 30th day after receipt of such notice
by Executive (the "Disability Effective Date"), provided that, within the 30
days after such receipt, Executive shall not have returned to full-time
performance of Executive's duties. For purposes of this Agreement, "Disability"
shall mean the absence of Executive from Executive's duties with the Company on
a full-time basis for 180 consecutive business days as a result of incapacity
due to mental or physi-

                                      -3-
<PAGE>   4
cal illness which is determined to be total and permanent by a physician
selected by the Company or its insurers and acceptable to Executive or
Executive's legal representative.

         (b) Cause. The Company may terminate Executive's employment during the
Employment Period for Cause or other than for Cause. For purposes of this
Agreement, "Cause" shall mean:

                  (i) the willful continued failure of Executive to perform
substantially Executive's duties with the Company or one of its affiliates
(other than any such failure resulting from incapacity due to physical or mental
illness), after a written demand for substantial performance is delivered to
Executive by the Board or the Chief Executive Officer of the Company which
specifically identifies the manner in which the Board or Chief Executive Officer
believes that Executive has not substantially performed Executive's duties, or

                  (ii) the willful engaging by Executive in illegal conduct or
gross misconduct which is materially and demonstrably injurious to the Company,
or

                  (iii) conviction of a felony or a guilty or nolo contendere
plea by Executive with respect thereto.

         (c) Good Reason. Executive's employment may be terminated by Executive
for Good Reason. For purposes of this Agreement, "Good Reason" shall mean, in
the absence of a written consent of Executive:

                  (i) the assignment to Executive of any duties inconsistent in
any respect with Executive's position (including status, offices, titles and
reporting requirements), authority, duties or responsibilities as contemplated
by Section 3(a) of this Agreement, or any other action by the Company which, in
Executive's reasonable judgment, results in a diminution in such position,
authority, duties or responsibilities, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and which is
remedied by the Company promptly after receipt of notice thereof given by
Executive;

                  (ii) any failure by the Company to comply with any of the
provisions of Section 3(b) of this Agreement, other than an isolated,
insubstantial and inadvertent failure not occurring in bad faith and which is
remedied by the Company promptly after receipt of notice thereof given by
Executive;

                  (iii) the Company's requiring Executive to be based at any
office or location more than 25 miles from that provided in Section 3(a)(i)
hereof;

                  (iv) any purported termination by the Company of Executive's
employment otherwise than as expressly permitted by this Agreement; or

                  (v) any failure by the Company to comply with and satisfy
Section 10(c) of this Agreement.

For purposes of this Section 4(c), any good faith determination of "Good Reason"
made by Executive shall be conclusive.

                                      -4-
<PAGE>   5
         (d) Notice of Termination. Any termination by the Company for Cause, or
by Executive for Good Reason, shall be communicated by Notice of Termination to
the other party hereto given in accordance with Section 11(b) of this Agreement.
For purposes of this Agreement, a "Notice of Termination" means a written notice
which (i) indicates the specific termination provision in this Agreement relied
upon, (ii) to the extent applicable, sets forth in reasonable detail the facts
and circumstances claimed to provide a basis for termination of Executive's
employment under the provision so indicated, and (iii) if the Date of
Termination (as defined below) is other than the date of receipt of such notice,
specifies the termination date (which date shall be not more than thirty days
after the giving of such notice). The failure by Executive or the Company to set
forth in the Notice of Termination any fact or circumstance which contributes to
a showing of Good Reason or Cause shall not waive any right of Executive or the
Company, respectively, hereunder or preclude Executive or the Company,
respectively, from asserting such fact or circumstance in enforcing Executive's
or the Company's rights hereunder.

         (e) Date of Termination. "Date of Termination" means (i) if Executive's
employment is terminated by the Company for Cause, or by Executive for Good
Reason, the date of receipt of the Notice of Termination or any later date
specified therein within 30 days of such notice, as the case may be, (ii) if
Executive's employment is terminated by the Company other than for Cause or
Disability, the Date of Termination shall be the date on which the Company
notifies Executive of such termination, and (iii) if Executive's employment is
terminated by reason of death or Disability, the Date of Termination shall be
the date of death of Executive or the Disability Effective Date, as the case may
be.

         5. Obligations of the Company Upon Termination. (a) Good Reason; Other
Than for Cause; Death or Disability. If, during the Employment Period, the
Company shall terminate Executive's employment other than for Cause, including
by reason of Executive's Disability, or Executive shall terminate employment for
Good Reason or by reason of death, this Agreement shall terminate without
further obligations to Executive other than as follows:

                  (i) the Company shall pay to Executive (or Executive's estate
or legal representative) in a lump sum in cash within 30 days after the Date of
Termination the amount equal to the unpaid balance of Executive's Guaranteed
Annual Compensation for the year in which Executive's Date of Termination occurs
and Executive's Guaranteed Annual Compensation for each remaining year, if any,
of the Employment Period; (ii) the Option shall vest immediately and shall
remain exercisable for the balance of the Employment Period, but in no event for
less than three years following the Date of Termination;

                  (iii) any restrictions on (A) the Restricted Shares, and (B)
any restricted shares granted to Executive by UPR and converted into restricted
shares of Company stock in the Merger, shall lapse immediately;

                  (iv) any unvested options granted to Executive by UPR and
converted into options on Company stock in the Merger shall vest in full;

                                      -5-
<PAGE>   6
                  (v) to the extent not theretofore paid or provided, the
Company shall timely pay or provide to Executive any other amounts or benefits
required to be paid or provided or which Executive is eligible to receive under
any plan, program, policy or practice or contract or agreement of the Company
and its affiliated companies through the Date of Termination (such other amounts
and benefits shall be hereinafter referred to as the "Other Benefits"); and

                  (vi) the Retirement Benefit shall become payable.

         (b) Cause; Other than for Good Reason. If Executive's employment shall
be terminated for Cause or Executive terminates Executive's employment without
Good Reason during the Employment Period, this Agreement shall terminate without
further obligations to Executive other than the obligation to pay or provide to
Executive (i) the Annual Base Salary through the Date of Termination, (ii) the
earned Annual Bonus for the previous year, if any, (iii) the Retirement Benefit,
and (iv) Other Benefits, in each case to the extent theretofore unpaid.

         6. Certain Covenants. (a) Confidential Information. Executive shall
hold in a fiduciary capacity for the benefit of the Company and its affiliated
companies during the Employment Period and thereafter all secret or confidential
information, knowledge or data relating to the Company or any of its affiliated
companies (including, without limitation, any proprietary and not publicly
available information concerning any processes, methods, trade secrets,
research, secret data, costs or names of users or purchasers of their respective
products or services, business methods, operating procedures or programs or
methods of promotion and sale) that Executive obtains during Executive's
employment by the Company or any of its affiliated companies (including his
prior employment with UPR) and that is not public knowledge (other than as a
result of Executive's violation of this Section 6(a)) ("Confidential
Information"). For the purposes of this Section 6(a), information shall not be
deemed to be publicly available merely because it is embraced by general
disclosures or because individual features or combinations thereof are publicly
available. Executive shall not communicate, divulge or disseminate Confidential
Information at any time during or after Executive's employment with the Company
or any its affiliated companies, except with the prior written consent of the
Company, or such affiliate, as applicable, or as otherwise required by law or
legal process.

                  (b) Noncompetition and Nonsolicitation. During the Employment
Period and for the shorter of (x) one year following the Date of Termination, or
(y) the period ending on the third anniversary of the Effective Date, Executive
shall not: (i) engage, anywhere within the geographical areas in which the
Company or any of its affiliated companies is then conducting its business
operations, directly or indirectly, alone, in association with, or as a
shareholder, principal, agent, partner, officer, director, employee or
consultant of any other organization, in any business (a "Competitive Business")
that competes with any business then being conducted by the Company or such
affiliate; (ii) solicit or encourage any individual who is an officer, employee
or consultant of the Company or any of its affiliated companies to leave the
employ of the Company or its affiliated companies; or (iii) solicit, divert or
take away, the business or patronage of any of the customers or accounts, or
prospective customers or accounts, of the Company or any affiliate, which were
contacted, solicited or served by Executive while employed by the Company or
UPR; provided, however, that nothing herein shall prohibit Executive from owning
a maximum of two percent (2%) of the outstanding stock of any publicly traded
corporation.

                                      -6-
<PAGE>   7
         (c) In the event of a breach or threatened breach of this Section 6,
Executive agrees that the Company shall be entitled to injunctive relief in a
court of appropriate jurisdiction to remedy any such breach or threatened
breach. Executive acknowledges that damages would be inadequate and
insufficient.

         7. Non-exclusivity of Rights. Except as specifically provided, nothing
in this Agreement shall prevent or limit Executive's continuing or future
participation in any plan, program, policy or practice provided by the Company
or any of its affiliated companies and for which Executive may qualify, nor,
subject to Section 11(f), shall anything herein limit or otherwise affect such
rights as Executive may have under any contract or agreement with the Company or
any of its affiliated companies. Amounts which are vested benefits or which
Executive is otherwise entitled to receive under any plan, policy, practice or
program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be
payable in accordance with such plan, policy, practice or program or contract or
agreement except as explicitly modified by this Agreement.

         8. No Mitigation; Legal Fees. In no event shall Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to Executive under any of the provisions of this Agreement, and
such amounts shall not be reduced whether or not Executive obtains other
employment. The Company agrees to pay as incurred, to the full extent permitted
by law, all legal fees and expenses that Executive may reasonably incur as a
result of any contest (regardless of the outcome thereof) by the Company,
Executive or others of the validity or enforceability of, or liability under,
any provision of this Agreement or any guarantee of performance thereof
(including as a result of any contest by Executive about the amount of any
payment pursuant to this Agreement), plus in each case interest on any delayed
payment at the applicable Federal rate provided for in Section 7872(f)(2)(A) of
the Internal Revenue Code of 1986, as amended (the "Code").

         9. Certain Additional Payments by the Company.

         (a) Anything in this Agreement to the contrary notwithstanding and
except as set forth below, in the event it shall be determined that any payment
or distribution by the Company or any of its affiliated companies to or for the
benefit of Executive (whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise, but determined without
regard to any additional payments required under this Section 9) (a "Payment")
would be subject to the excise tax imposed by Section 4999 of the Code or any
interest or penalties are incurred by Executive with respect to such excise tax
(such excise tax, together with any such interest and penalties, are hereinafter
collectively referred to as the "Excise Tax"), then Executive shall be entitled
to receive an additional payment (a "Gross-Up Payment") in an amount such that
after payment by Executive of all taxes (including any interest or penalties
imposed with respect to such taxes), including, without limitation, any income
taxes (and any interest and penalties imposed with respect thereto) and Excise
Tax imposed upon the Gross-Up Payment, Executive retains an amount of the
Gross-Up Payment equal to the Excise Tax imposed upon the Payments.

         (b) Subject to the provisions of Section 9(c), all determinations
required to be made under this Section 9, including whether and when a Gross-Up
Payment is required and the

                                      -7-
<PAGE>   8
amount of such Gross-Up Payment and the assumptions to be utilized in arriving
at such determination, shall be made by KPMG Peat Marwick LLP or such other
certified public accounting firm reasonably acceptable to the Company as may be
designated by Executive (the "Accounting Firm") which shall provide detailed
supporting calculations both to the Company and Executive within 15 business
days of the receipt of notice from Executive that there has been a Payment, or
such earlier time as is requested by the Company. All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 9, shall be paid by the Company to Executive
within five days of (i) the later of the due date for the payment of any Excise
Tax, and (ii) the receipt of the Accounting Firm's determination. Any
determination by the Accounting Firm shall be binding upon the Company and
Executive. As a result of the uncertainty in the application of Section 4999 of
the Code at the time of the initial determination by the Accounting Firm
hereunder, it is possible that Gross-Up Payments which will not have been made
by the Company should have been made ("Underpayment"), consistent with the
calculations required to be made hereunder. In the event that the Company
exhausts its remedies pursuant to Section 9(c) and Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of
Executive.

         (c) Executive shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the
Company of the Gross-Up Payment. Such notification shall be given as soon as
practicable but no later than ten business days after Executive is informed in
writing of such claim and shall apprise the Company of the nature of such claim
and the date on which such claim is requested to be paid. Executive shall not
pay such claim prior to the expiration of the 30-day period following the date
on which it gives such notice to the Company (or such shorter period ending on
the date that any payment of taxes with respect to such claim is due). If the
Company notifies Executive in writing prior to the expiration of such period
that it desires to contest such claim, Executive shall:

                  (i) give the Company any information reasonably requested by
the Company relating to such claim,

                  (ii) take such action in connection with contesting such claim
as the Company shall reasonably request in writing from time to time, including,
without limitation, accepting legal representation with respect to such claim by
an attorney reasonably selected by the Company,

                  (iii) cooperate with the Company in good faith in order
effectively to contest such claim, and

                  (iv) permit the Company to participate in any proceedings
relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and

                                      -8-
<PAGE>   9
payment of costs and expenses. Without limitation on the foregoing provisions of
this Section 9(c), the Company shall control all proceedings taken in connection
with such contest and, at its sole option, may pursue or forgo any and all
administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct
Executive to pay the tax claimed and sue for a refund or contest the claim in
any permissible manner, and Executive agrees to prosecute such contest to a
determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs Executive to pay such
claim and sue for a refund, the Company shall advance the amount of such payment
to Executive, on an interest-free basis and shall indemnify and hold Executive
harmless, on an after-tax basis, from any Excise Tax or income tax (including
interest or penalties with respect thereto) imposed with respect to such advance
or with respect to any imputed income with respect to such advance; and further
provided that any extension of the statute of limitations relating to payment of
taxes for the taxable year of Executive with respect to which such contested
amount is claimed to be due is limited solely to such contested amount.
Furthermore, the Company's control of the contest shall be limited to issues
with respect to which a Gross-Up Payment would be payable hereunder and
Executive shall be entitled to settle or contest, as the case may be, any other
issue raised by the Internal Revenue Service or any other taxing authority.

         (d) If, after the receipt by Executive of an amount advanced by the
Company pursuant to Section 9(c), Executive becomes entitled to receive any
refund with respect to such claim, Executive shall (subject to the Company's
complying with the requirements of Section 9(c)) promptly pay to the Company the
amount of such refund (together with any interest paid or credited thereon after
taxes applicable thereto). If, after the receipt by Executive of an amount
advanced by the Company pursuant to Section 9(c), a determination is made that
Executive shall not be entitled to any refund with respect to such claim and the
Company does not notify Executive in writing of its intent to contest such
denial of refund prior to the expiration of 30 days after such determination,
then such advance shall be forgiven and shall not be required to be repaid and
the amount of such advance shall offset, to the extent thereof, the amount of
Gross-Up Payment required to be paid.

         10. Successors. (a) This Agreement is personal to Executive and without
the prior written consent of the Company shall not be assignable by Executive
otherwise than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and be enforceable by Executive's legal
representatives.

         (b) This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and assigns.

         (c) The Company will require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company to assume expressly and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place.
As used in this Agreement, "Company" shall mean the Company as hereinbefore
defined and any successor to its business and/or assets as aforesaid which
assumes and agrees to perform this Agreement by operation of law, or otherwise.

                                      -9-
<PAGE>   10
         11. Miscellaneous. (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. This Agreement may
not be amended or modified otherwise than by a written agreement executed by the
parties hereto or their respective successors and legal representatives.

         (b) All notices and other communications hereunder shall be in writing
and shall be given by hand delivery to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

                  If to Executive:          George Lindahl III
                                            c/o Anadarko Petroleum Corporation
                                            17001 Northchase Drive
                                            Houston, TX 77060-2141

                  If to the Company:        Anadarko Petroleum Corporation
                                            17001 Northchase Drive
                                            Houston, TX  77060-2141

                                            Attention:  General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notices and communications shall be effective
when actually received by the addressee.

         (c) The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement.

         (d) The Company may withhold from any amounts payable under this
Agreement such federal, state, local or foreign taxes as shall be required to be
withheld pursuant to any applicable law or regulation.

         (e) Executive's or the Company's failure to insist upon strict
compliance with any provision of this Agreement or the failure to assert any
right Executive or the Company may have hereunder, including, without
limitation, the right of Executive to terminate employment for Good Reason
pursuant to Section 4(c)(i)-(v) of this Agreement, shall not be deemed to be a
waiver of such provision or right or any other provision or right of this
Agreement.

         (f) From and after the Effective Date, subject to Section 12 and except
as otherwise specifically provided herein, this Agreement shall supersede any
other employment, severance or change of control agreement, arrangement, or
understanding, whether written or oral, between the parties and between
Executive and UPR, including, without limitation, the Agreement dated October
21, 1999 by and between UPR and Executive.

         (g) This Agreement shall be void and of no further force or effect if
the Merger is not consummated or upon termination of the Merger Agreement.

                                      -10-
<PAGE>   11
         12. Change of Control. Executive shall be provided the Key Employee
Change of Control Contract of the Company that is provided to Peer Executives.
Such Key Employee Change of Control Contract shall be applicable solely upon a
Change of Control subsequent to the Merger (as such term is defined therein). In
the event Executive's employment terminates during the Employment Period
following a Change of Control of the Company subsequent to the Merger, Executive
may elect to receive severance and retirement benefits under the terms of either
this Employment Agreement or the Key Employee Change of Control Contract, but
not under both Agreements.

                                      -11-
<PAGE>   12
                  IN WITNESS WHEREOF, Executive has hereunto set Executive's
hand and, pursuant to the authorization from its Board of Directors, the Company
has caused this Agreement to be executed in its name on its behalf, all as of
the day and year first above written.

                                       /s/ George Lindahl III
                                       -----------------------------------------
                                       George Lindahl III

                                       ANADARKO PETROLEUM CORPORATION

                                       By   /s/ Robert J. Allison, Jr.
                                            ------------------------------------
                                            Name:  Robert J. Allison, Jr.
                                            Date:  May 19, 2000

                                      -12-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}]]