Document:

Form of Plains Stock Appreciation Rights Agreement

 
EXHIBIT 10.18

 
PLAINS EXPLORATION & PRODUCTION COMPANY

2002 STOCK INCENTIVE PLAN 
STOCK APPRECIATION RIGHTS AGREEMENT 
 
This Stock Appreciation Rights Agreement (the “Agreement”), made as of the              day of
            , 2003 (the “Grant Date”) by and between Plains Exploration & Production Company (the “Company”), and
                     (the “Grantee”), evidences the grant by the Company of stock appreciation rights
(“SARs” or “Award”) to the Grantee on such date and the Grantee’s acceptance of the Award in accordance with the provisions of the Plains Exploration & Production Company 2002 Stock Incentive Plan, as
amended or restated from time to time (the “Plan”). The Company and the Grantee agree as follows: 
 
1. Grant of SARs. 
 
1.1 The Company hereby grants to Grantee              SARs, at an exercise price
per share of $             (the “SAR Exercise Price”). 
 
1.2 This Agreement shall be construed in accordance and consistent with, and subject to, the provisions of the Plan (the provisions of which are
incorporated herein by reference) and, except as otherwise expressly set forth herein, the capitalized terms used in this Agreement shall have the same definitions as set forth in the Plan. 
 
2. Duration of Award. 
 
The Award shall be exercisable to the extent and in the manner provided
herein for a period of              [years] from the Grant Date (the “Exercise Term”); provided, however, that the Award may be earlier terminated as
provided in Section 5 hereof. 
 
3. Exercisability of Award.

 
Unless otherwise provided in this Agreement or the Plan,
the Award shall entitle the Grantee to exercise, in whole at any time or in part from time to time,             % of the total number of SARs covered by the Award after the
expiration of              from the Grant Date, and an additional             % of the total number of SARs covered
by the Award after the expiration of each of the              anniversaries of the Grant Date, and each such right of exercise shall be cumulative and shall continue, unless sooner
exercised or terminated as herein provided, during the remaining period of the Exercise Term. Any fractional number of SARs resulting from the application of the foregoing percentages shall be rounded to the nearest whole number of SARs. 

 
4. Manner of
Exercise. 
 
4.1 Subject to the terms
and conditions of this Agreement and the Plan, the SARs may be exercised by delivery in person, by telecopy or by mail of written notice to the Company, at its principal executive office. Such notice shall state that the Grantee is electing to
exercise a specific number of SARs and shall be signed by the person or persons exercising the SARs. If requested by the Committee, such person or persons shall (i) deliver this Agreement to the Secretary of the Company who shall endorse thereon a
notation of such exercise and (ii) provide satisfactory proof as to the right of such person or persons to exercise the Award. 
 
4.2 Upon the exercise of SARs, the Grantee shall be entitled to receive an amount determined by multiplying (A) the Appreciation
Value of a Share, by (B) the number of SARs being exercised. Payment of such amount will be made solely in cash. 
 
4.3 The Grantee shall not be deemed to be the holder of, or to have any of the rights of a holder with respect to, any Shares
related to the SARs. 
 
5. Termination of Employment.

 
5.1 Termination for any Reason other
than Cause. If the Grantee’s employment is terminated for any reason other than by the Company for Cause, the Award shall continue to be exercisable in whole or in part (to the extent exercisable on the date of such termination of
employment) for the duration of the Exercise Term. In the event of the Grantee’s death, the Award shall be exercisable, to the extent provided in the Plan and this Agreement, by the legatee or legatees under his or her will, or by his or her
personal representatives or distributees and such person or persons shall be substituted for the Grantee each time the Grantee is referred to herein. 
 
5.2 Termination for Cause. If the employment of the Grantee is terminated for Cause, any unexercised portion of the Award
shall terminate on the date of the Grantee’s termination of employment (whether or not exercisable). 
 
6. Effect of Change in Control. 
 
Notwithstanding anything contained in this Agreement to the contrary, in the event of a Change in Control, (i) the Award shall
become immediately and fully exercisable, and (ii) the Grantee will be permitted to surrender for cancellation within ninety (90) days after such Change in Control, the Award or any portion of the Award to the extent not yet exercised and the
Grantee shall be entitled to receive immediately a cash payment in an amount equal to Appreciation Value of the Award, if any, on the date of surrender. 
 

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7.
Nontransferability. 
 
During the
Grantee’s life, the Award may only be transferred to members of the Grantee’s immediate family, to trusts solely for the benefit of such immediate family members and to partnerships in which such family members and/or trusts are the only
partners. For purposes of the Plan and this Agreement, a transferee shall be deemed to be the Grantee. For this purpose, “immediate family” means the Grantee’s spouse, parents, children, stepchildren and grandchildren and the spouses
of such parents, children, stepchildren and grandchildren. The terms of this Agreement shall be final, binding and conclusive upon the beneficiaries, executors, administrators, heirs and successors of the Grantee. 
 
8. No Right to Continued Employment. 
 
Nothing in this Agreement or the Plan shall be
interpreted or construed to confer upon the Grantee any right with respect to continuance of employment by the Company, nor shall this Agreement or the Plan interfere in any way with the right of the Company to terminate the Grantee’s
employment at any time. 
 
9. Adjustments.

 
In the event of a Change in
Capitalization, the Committee may make appropriate adjustments to the number of SARs subject to the Award and the Exercise Price. The Committee’s adjustment shall be made in accordance with the provisions of Section 14 of the Plan and shall be
effective and final, binding and conclusive for all purposes of the Plan and this Agreement. 
 
10. Effect of a Merger, Consolidation or Liquidation. 
 
Subject to Sections 6 and 9 hereof, upon the effective date of (i) the liquidation or dissolution of the Company or (ii) a merger or
consolidation of the Company, the Award shall continue in effect in accordance with its terms. 
 
11. Withholding of Taxes. 
 
The Company shall have the right to deduct from any distribution of cash to the Grantee an amount equal to the federal, state and local income taxes and other amounts as may be required by law to be withheld
(the “Withholding Taxes”) with respect to the Award. 
 

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12. Grantee Bound by
the Plan. 
 
The Grantee hereby
acknowledges receipt of a copy of the Plan and agrees to be bound by all the terms and provisions thereof. 
 
13. Modification of Agreement. 
 
This Agreement may be modified, amended, suspended or terminated, and any terms or conditions may be waived, but only by a written
instrument executed by the parties hereto. 
 
14.
Severability. 
 
Should any provision
of this Agreement be held by a court of competent jurisdiction to be unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be affected by such holding and shall continue in full force in accordance with their
terms. 
 
15. Governing Law. 
 
The validity, interpretation, construction and
performance of this Agreement shall be governed by the laws of the State of Delaware without giving effect to the conflicts of laws principles thereof. 
 
16. Successors in Interest. 
 
This Agreement shall inure to the benefit of and be binding upon any successor to the Company. This Agreement shall inure to the
benefit of the Grantee’s legal representatives. All obligations imposed upon the Grantee and all rights granted to the Company under this Agreement shall be final, binding and conclusive upon the Grantee’s heirs, executors, administrators
and successors. 
 
17. Resolution of Disputes.

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

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

	
	 PLAINS EXPLORATION & PRODUCTION COMPANY

	
	 By:
	 	  
                                      
                                        
                                        
       

	
	 By:
	 	  
                                      
                                        
                                        
       

	
	 	 	 Grantee:

 

5Form of Plains Restricted Stock Award Agreement

EXHIBIT 10.19 
 
PLAINS EXPLORATION & PRODUCTION COMPANY 
2002 STOCK INCENTIVE PLAN 
RESTRICTED STOCK AWARD AGREEMENT

 
This Restricted Stock Award Agreement (the
“Agreement”), made as of the              day of             , 2003 (the “Grant
Date”) by and between Plains Exploration & Production Company (the “Company”), and              (the “Grantee”),
evidences the grant by the Company of a stock award of restricted Shares (the “Award”) to the Grantee on such date and the Grantee’s acceptance of the Award in accordance with the provisions of the Plains Exploration
& Production Company 2002 Stock Incentive Plan, as amended or restated from time to time (the “Plan”). The Company and the Grantee agree as follows: 
 
1. Basis for Award. This Award is made under the Plan pursuant to Section 9 thereof for services to be
rendered to the Company by the Grantee. 
 
2. Stock
Awarded. 
 
(a) The Company hereby awards to the
Grantee, in the aggregate,              Shares (“Restricted Stock”), which shall be subject to the restrictions and conditions set forth in the Plan and in this
Agreement. 
 
(b) Each certificate issued in respect of the
Restricted Stock shall be registered in the Grantee’s name and deposited by him, together with a share power endorsed in blank, with the Company and shall bear the following (or a similar) legend: 
 
“THE TRANSFERABILITY OF THIS CERTIFICATE AND

THE COMMON STOCK REPRESENTED HEREBY ARE 
SUBJECT TO THE TERMS AND CONDITIONS 
(INCLUDING
FORFEITURE) CONTAINED IN THE 
RESTRICTED STOCK AWARD AGREEMENT DATED AS OF 
[            
            ], 2003, ENTERED INTO BETWEEN 
THE REGISTERED
OWNER AND PLAINS EXPLORATION 
& PRODUCTION COMPANY” 
 
At the expiration of the restrictions, the Company shall redeliver to the Grantee (or
his legal representative, beneficiary or heir) share certificates for the Shares deposited with it without any legend except as otherwise provided by the Plan, this Agreement or as otherwise required by applicable law. The Grantee shall have the
right to receive dividends on and to vote the Restricted Stock while it is held in custody except as otherwise provided by the Plan. Notwithstanding the foregoing, the Company shall retain custody of all Retained Distributions made or declared with
respect to the Restricted Stock and such Retained Distributions shall be subject to the same restrictions on terms and conditions as are applicable to the Restricted Stock. 
 
(c) Except as provided in the Plan or this Agreement, the restrictions on the Restricted Stock covered by this
Agreement are that the stock will be forfeited by the Grantee and all of the Grantee’s rights to such stock shall immediately terminate without any payment or 

 
consideration by the Company, in the
event of any sale, assignment, transfer, hypothecation, pledge or other alienation of such Restricted Stock made or attempted, whether voluntary or involuntary, and if involuntary whether by process of law in any civil or criminal suit, action or
proceeding, whether in the nature of an insolvency or bankruptcy proceeding or otherwise, without the written consent of the Committee, excluding the Grantee if he so serves on the Committee. 
 
3. Vesting. The restrictions described in Section 2 of
this Agreement will lapse with respect to one-third (1/3) of the Restricted Stock on the first anniversary of the Grant Date and with respect to an additional one-third (1/3) of the Restricted Stock on each of the second and third anniversaries of
the Grant Date, provided the Grantee is still employed by the Company (or any Parent or Subsidiary) on such vesting dates. All restrictions will lapse with respect to 100% of the Restricted Stock upon (a) Grantee’s death, separation from
service due to Disability, termination of employment by the Company without Cause, or termination of employment by the Grantee for Good Reason provided that the Grantee’s employment agreement with the Company provides for a termination of
employment by the Grantee for Good Reason (as defined in such employment agreement), or (b) a Change in Control of the Company. If the Grantee ceases to be employed by the Company (or any Parent or Subsidiary) for any other reason at any time prior
to the vesting dates, the unvested Restricted Stock shall automatically be forfeited upon such cessation of service. 
 
4. Compliance with Laws and Regulations. The issuance and transfer of Shares shall be subject to compliance by the Company and the
Grantee with all applicable requirements of securities laws and with all applicable requirements of any stock exchange on which the Shares may be listed at the time of such issuance or transfer. The Grantee understands that the Company is under no
obligation to register or qualify the Shares with the Securities and Exchange Commission (“SEC”), any state securities commission or any stock exchange to effect such compliance. 
 
5. Tax Withholding. 
 
(a) The Grantee agrees that, subject to clause 5(b) below, no later
than the date as of which the restrictions on the Restricted Stock shall lapse with respect to all or any of the Restricted Stock covered by this Agreement, the Grantee shall pay to the Company (in cash or to the extent permitted by the Committee,
Shares held by the Grantee whose Fair Market Value on the day preceding the date the Restricted Stock vests is equal to the amount of the Grantee’s tax withholding liability) any federal, state or local taxes of any kind required by law to be
withheld, if any, with respect to the Restricted Stock for which the restrictions shall lapse. The Company or its affiliates shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to the Grantee
any federal, state or local taxes of any kind required by law to be withheld with respect to the shares of Restricted Stock. 
 
(b) If the Grantee properly elects, within thirty (30) days of the Grant Date, to include in gross income for federal income tax purposes an amount
equal to the Fair Market Value as of the Grant Date of the Restricted Stock granted hereunder pursuant to Section 83(b) of the Internal Revenue Code of 1986, as amended, the Grantee shall pay to the Company, or make other arrangements satisfactory
to the Committee to pay to the Company in the year of 
 

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such grant, any federal, state or local
taxes required to be withheld with respect to such Shares. If the Grantee fails to make such payments, the Company or its affiliates shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to the
Grantee any federal, state or local taxes of any kind required by law to be withheld with respect to such Shares. 
 
6. No Right to Continued Employment. Nothing in this Agreement shall be deemed by implication or otherwise to impose any limitation on
any right of the Company or any of its affiliates to terminate the Grantee’s employment at any time, in the absence of a specific written agreement to the contrary. 
 
7. Representations and Warranties of Grantee. The Grantee represents and warrants to the Company that:

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

 
8. Adjustment Upon Changes in
Capitalization. In the event of a Change in Capitalization, the Committee may make appropriate adjustments to the number and class of shares relating to Restricted Stock as it deems appropriate, in its sole discretion, to preserve the value
of this Award. The Committee’s adjustment shall be made in accordance with the provisions of Section 14 of the Plan and shall be effective and final, binding and conclusive for all purposes of the Plan and this Agreement. 
 
9. Governing Law; Modification. This Agreement shall be
governed by the laws of the State of Delaware without regard to the conflict of law principles. The Agreement may not be modified except in writing signed by both parties. 
 
10. Defined Terms. Except as otherwise provided herein, or unless the context clearly indicates
otherwise, capitalized terms used but not defined herein have the definitions as provided in the Plan. The terms and provisions of the Plan are incorporated herein by reference, and the Grantee hereby acknowledges receiving a copy of the Plan. In
the event of a conflict or inconsistency between the discretionary terms and provisions of the Plan and the provisions of this Agreement, this Agreement shall govern and control. 
 
11. Miscellaneous. The masculine pronoun shall be deemed to include the feminine, and the singular number
shall be deemed to include the plural unless a different meaning is plainly required by the context. 
 

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

	 PLAINS EXPLORATION & PRODUCTION COMPANY

	
	 By:
	 	  
                                      
                                        
                                        
       

	
	 	 	 Name:

	 	 	 Title:

	
	 GRANTEE

	
	 By:
	 	  
                                      
                                        
                                        
       

 

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