Document:

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                                                                   EXHIBIT 10.25

                     SUPPLEMENTAL RETIREMENT INCOME PLAN OF
                            DEVON ENERGY CORPORATION
            (As Amended and Restated Effective As Of August 1, 2001)

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                     SUPPLEMENTAL RETIREMENT INCOME PLAN OF
                            DEVON ENERGY CORPORATION

                                    SECTION 1
                            ESTABLISHMENT AND PURPOSE

         1.1. Purpose and Effective Date. Contrary to the desire of the
Employers, the amount of the benefits payable to or on account of participants
under the Retirement Plan may be limited by reason of the application of certain
provisions of the Code. Accordingly, the Company established the Supplemental
Retirement Income Plan of Devon Energy Corporation (the "Plan") effective July
1, 1995, and such Plan was amended and restated May 19, 1999. The following
constitutes an amendment, restatement, and continuation of the Plan effective as
of August 1, 2001, the "Effective Date" of the Plan as set forth herein, subject
to the provisions of subsection 1.2.

         1.2. Application of Effective Date. The Plan, as amended and restated
herein, shall be applicable to any individual who is a Participant on the
Effective Date, with the provisions of the Plan as so amended and restated being
applicable to each such individual on and after the Effective Date, subject to
the following:

(a)      The Plan, as amended and restated herein, shall be applicable to any
         individual who first becomes a Participant in the Plan after the
         Effective Date, effective as of the date on which the individual
         becomes a Participant.

(b)      For periods on and after the Effective Date, eligibility for
         participation shall be determined in accordance with the terms of the
         Plan as amended and restated herein.

(c)      Individuals who were Participants in the Plan prior to the Effective
         Date and whose Plan benefits were fully distributed or canceled before
         the Effective Date, distributions made prior to the Effective Date, and
         distributions made with respect to a Participant's termination of
         employment that occurs prior to the Effective Date, shall not be
         subject to the Plan, as amended and restated herein, but shall be
         subject to the applicable provisions of the Plan as in effect from time
         to time prior to the Effective Date. However, if such individual again
         becomes a Participant in the Plan after the Effective Date, any
         benefits earned under the Plan by the Participant after the Effective
         Date shall be subject to the terms of the Plan as amended and restated
         herein.

(d)      If an individual is a Participant in the Plan prior to the Effective
         Date, and either is not offered participation in the Plan for periods
         after the Effective Date, or is offered participation in the Plan for
         periods after the Effective Date but fails to sign and return the
         Participation Agreement in accordance with the requirements applicable
         to such agreement, then, except as otherwise expressly provided by the
         Committee in writing, the individual shall not be a Participant in the
         Plan on or after the Effective Date, and his rights under the Plan
         shall be determined in accordance with the Plan as in effect prior to
         the Effective Date.

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                                    SECTION 2
                          DEFINITIONS AND CONSTRUCTION

         The following words, terms, and phrases used in the Plan shall have the
meanings set forth in this Section 2:

(a)      "Affiliate" means any entity during any period that it is an affiliate
         of the Company, as the term "affiliate" is defined under Rule 12b-2 of
         the Exchange Act (provided that for this purpose, "Affiliate" shall
         exclude natural persons).

(b)      "Beneficiary" means the trust, person or persons on whose behalf
         benefits may be payable under the Retirement Plan after the
         Participant's death.

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

(d)      A "Change of Control Date" shall be deemed to have occurred each time
         any one of the events described in paragraphs (i), (ii), (iii), or (iv)
         below occurs; provided that if a Change of Control Date occurs by
         reason of an acquisition by any Person that comes within the provisions
         of paragraph (i) below), no addition Change of Control Date shall be
         deemed to occur under such paragraph (i) by reason of subsequent
         changes in holdings by such Person (except if the holdings by such
         Person are reduced below 30% and thereafter increase to 30% or above).
         For the purpose of this paragraph (d), the term "Company" shall include
         Devon Energy Corporation and any successor thereto.

         (i)      The acquisition by any individual, entity or group (within the
                  meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act)
                  (a "Person") if, immediately after such acquisition, such
                  Person has beneficial ownership (within the meaning of Rule
                  13d-3 promulgated under the Exchange Act) of 30% or more of
                  either (I) the then outstanding shares of common stock of the
                  Company (the "Outstanding Company Common Stock") or (II) the
                  combined voting power of the then outstanding voting
                  securities of the Company entitled to vote generally in the
                  election of directors (the "Outstanding Company Voting
                  Securities"); provided, however, that the following
                  acquisitions shall not constitute a Change of Control Date:
                  (A) any acquisition by an underwriter temporarily holding
                  securities pursuant to an offering of such securities; (B) any
                  acquisition by the Company; (C) any acquisition by any
                  employee benefit plan (or related trust) sponsored or
                  maintained by the Company or any corporation controlled by the
                  Company; or (D) any acquisition by any corporation pursuant to
                  a transaction which complies with clauses (A), (B), and (C) of
                  paragraph (iii) below.

         (ii)     Individuals who, as of the Effective Date, constitute the
                  Board (the "Incumbent Board") cease for any reason to
                  constitute at least a majority of the Board; provided,
                  however, that any individual becoming a director subsequent to
                  the Effective Date whose election, appointment or nomination
                  for election by the Company's shareholders was approved by a
                  vote of at least a majority of the directors then comprising
                  the Incumbent Board shall be considered as though such
                  individual were a member of the Incumbent Board, but
                  excluding, for

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                  purposes of this definition, any such individual whose initial
                  assumption of office occurs as a result of an actual or
                  publicly threatened election contest (as such terms are used
                  in Rule 14a-11 promulgated under the Exchange Act) with
                  respect to the election or removal of directors or other
                  actual or publicly threatened solicitation of proxies or
                  consents by or on behalf of a Person other than the Board.

         (iii)    A reorganization, share exchange, merger or consolidation (a
                  "Business Combination"), in each case, unless, following such
                  Business Combination, (A) all or substantially all of the
                  individuals and entities who were the beneficial owners,
                  respectively, of the Outstanding Company Common Stock and
                  Outstanding Company Voting Securities immediately prior to
                  such Business Combination beneficially own, directly or
                  indirectly, more than 50% of, respectively, the then
                  outstanding shares of common stock and the combined voting
                  power of the then outstanding voting securities entitled to
                  vote generally in the election of directors, as the case may
                  be, of the ultimate parent entity resulting from such Business
                  Combination (including, without limitation, an entity which,
                  as a result of such transaction, has ownership of the Company
                  or all or substantially all of the assets of the Company
                  either directly or through one or more subsidiaries) in
                  substantially the same relative proportions as their
                  ownership, immediately prior to such Business Combination of
                  the Outstanding Company Common Stock and Outstanding Company
                  Voting Securities, as the case may be, (B) no Person
                  (excluding any employee benefit plan (or related trust) of the
                  Company or such corporation resulting from such Business
                  Combination) beneficially owns, directly or indirectly, 30% or
                  more of, respectively, the then outstanding common stock of
                  the ultimate parent entity resulting from such Business
                  Combination or the combined voting power of the then
                  outstanding voting securities of such entity except to the
                  extent that such ownership existed prior to the Business
                  Combination, and (C) at least a majority of the members of the
                  board of directors of the corporation resulting from such
                  Business Combination were members of the Incumbent Board at
                  the time of the execution of the initial agreement, or of the
                  action of the Incumbent Board providing for such Business
                  Combination, or were elected, appointed or nominated by the
                  Incumbent Board.

         (iv)     Approval by the shareholders of the Company of (A) a complete
                  liquidation or dissolution of the Company or, (B) the sale or
                  other disposition of all or substantially all of the assets of
                  the Company, other than to an entity with respect to which
                  following such sale or other disposition, (1) more than 50%
                  of, respectively, the then outstanding shares of common stock
                  of such entity and the combined voting power of the then
                  outstanding voting securities of such entity entitled to vote
                  generally in the election of directors is then beneficially
                  owned, directly or indirectly, by all or substantially all of
                  the individuals and entities who were the beneficial owners,
                  respectively, of the Outstanding Company Common Stock and
                  Outstanding Company Voting Securities immediately prior to
                  such sale or other disposition in substantially the same
                  relative proportions as their ownership, immediately prior to
                  such sale or other disposition, of the Outstanding

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                  Company Common Stock and Outstanding Company Voting
                  Securities, as the case may be, (2) less than 30% of,
                  respectively, the then outstanding shares of common stock of
                  such entity and the combined voting power of the then
                  outstanding voting securities of such entity entitled to vote
                  generally in the election of directors is then beneficially
                  owned, directly or indirectly, by any Person (excluding any
                  employee benefit plan (or related trust) of the Company or
                  such entity), except to the extent that such Person owned 30%
                  or more of the Outstanding Company Common Stock or Outstanding
                  Company Voting Securities prior to the sale or disposition,
                  and (3) at least a majority of the members of the board of
                  directors of such entity were members of the Incumbent Board
                  at the time of the execution of the initial agreement, or of
                  the action of the Incumbent Board providing for such sale or
                  other disposition of assets of the Company, or were elected,
                  appointed or nominated by the Incumbent Board.

         If (I) a Participant's Date of Termination occurs on or after the date
         of approval by the Company's shareholders of a transaction described in
         paragraph (iii) above; (II) the transaction so approved by shareholders
         is consummated and constitutes a Change of Control Date under paragraph
         (iii) above; and (III) prior to the consummation of such transaction,
         the Participant's Date of Termination occurs, then for purposes of
         applying the provisions of subsection 4.2 (relating to vesting), the
         Change of Control Date shall be deemed to have occurred with respect to
         such Participant immediately prior to such Participant's Date of
         Termination provided that, to the extent that the application of this
         sentence results in the Participant becoming entitled to benefits under
         the Plan, commencement of such benefits shall be required to occur not
         earlier than the date of the consummation of the transaction.

         If (A) a Participant's Date of Termination occurs prior to a Change of
         Control Date by reason of termination by the Company without Cause; (B)
         the Participant reasonably demonstrates that such termination either:

                  (1) was at the request of a third party who had indicated an
                  intention or taken steps reasonably calculated to effect a
                  Change of Control Date or who effectuates a Change of Control
                  Date or

                  (2) was otherwise in connection with, or in anticipation of, a
                  Change of Control Date which actually occurs,

         then, for purposes of this Plan, a Change of Control Date with respect
         to that Participant shall be deemed to be the date immediately prior to
         the Participant's Date of Termination; provided that, to the extent
         that the application of this sentence results in the Executive becoming
         entitled to benefits under the Plan, commencement of such benefits
         shall be required to occur not earlier than the date of the Change in
         Control or, in the case of a Change in Control described in paragraph
         (ii) above, consummation of the transaction. If any such termination
         occurs while an agreement is pending and the effective provisions of
         such agreement provide for a transaction or transactions which, if
         consummated, would constitute a Change of Control Date, and such Change
         of Control Date occurs,

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         then such termination shall conclusively be presumed to be in
         connection with a Change of Control Date.

(e)      "Code" means the Internal Revenue Code of 1986, as amended.

(f)      "Company" means Devon Energy Corporation, a Delaware corporation.

(g)      "Committee" shall have the meaning ascribed to it in subsection 6.1.

(h)      A Participant's "Date of Termination" means the first day on which the
         Participant is not employed by the Company or any Affiliate, regardless
         of the reason for the termination of employment, subject to the
         following:

         (i)      Transfers. A termination of employment shall not be deemed to
                  occur by reason of a transfer of a Participant between the
                  Company and an Affiliate or between two Affiliates. A
                  Participant's employment shall not be considered terminated
                  while the Participant is on a leave of absence from the
                  Company or an Affiliate approved by the Participant's
                  employer.

         (ii)     Transactions. If, as a result of a sale or other transaction,
                  a Participant's employer ceases to be an Affiliate (and the
                  Participant's employer is or becomes an entity that is
                  separate from the Company), and the Participant is not, at the
                  end of the 30-day period following the transaction, employed
                  by the Company or an entity that is then an Affiliate, then
                  (A) the Participant's service and compensation after such
                  transaction shall be disregarded; and (B) for purposes of
                  determining the Participant's eligibility for benefits, the
                  Participant's Date of Termination (and the Participant's
                  status as an "Employee") shall be determined based on the
                  Participant's employment with the successor employer and its
                  affiliates.

(i)      A Participant's "Early Retirement Date" means the first day of the
         month coinciding or following the date the Participant's Date of
         Termination occurs after either (i) earning at least ten Years of
         Credited Service and attaining at least age 55; or (ii) earning at
         least twenty Years of Credited Service.

(j)      "Effective Date" means August 1, 2001.

(k)      A Participant will be treated as an "Employee" for the period beginning
         on the date the Participant is employed by the Company or an Affiliate,
         and continuing until his or her Date of Termination. If, after the
         Participant's Date of Termination, the Participant is again employed by
         the Company or an Affiliate, the Participant shall again be treated as
         an "Employee" for the period beginning on the date of such reemployment
         and continuing until the subsequent Date of Termination.

(l)      "Employer" means the Company and each Affiliate which adopts the Plan
         with the consent of the Company. Until action to the contrary is taken
         by the Board, the Company shall be deemed to have consented to the
         participation in the Plan by any Affiliates (subject to adoption by the
         Affiliate).

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(m)      A Participant's "Employment Agreement" shall be the employment
         agreement, severance agreement, or other similar agreement between the
         Participant and the Company or other Affiliate which employs the
         Participant as in effect from time to time.

(n)      "Exchange Act" means the Securities Exchange Act of 1934.

(o)      "Participant" shall have the meaning ascribed to it in subsection 3.1.

(p)      "Participation Agreement" shall mean the agreement which will be
         entered into by and between the Company and the Participant in
         accordance with subsection 3.4.

(q)      "Plan Year" means the calendar year.

(r)      "Restoration Plan" means the Devon Energy Corporation Benefit
         Restoration Plan.

(s)      "Retirement Plan" means the Retirement Plan for Employees of Devon
         Energy Corporation.

Other words, terms, and phrases used in the Plan are defined in the Retirement
Plan or elsewhere in this Plan. Except where a word, term, or phrase is
otherwise defined in the Plan, or where the context clearly implies or indicates
the contrary, a word, term, or phrase used in the Retirement Plan is similarly
used in this Plan.

                                    SECTION 3
                                  PARTICIPATION

         3.1. Eligibility. Subject to the terms and conditions of the Plan, the
Committee, in its discretion, at such times as the Committee determines, shall
designate those employees of the Employers who are eligible to receive benefits
under the Plan, and thereby become "Participants" in the Plan.

         3.2. Restricted Participation. Notwithstanding any other provision of
the Plan to the contrary, if the Committee determines that participation by one
or more Participants shall cause the Plan as applied to any Employer to be
subject to Part 2, 3 or 4 of Title I of the Employee Retirement Income Security
Act of 1974, as amended, the entire interest of such Participant under the Plan
shall be, in the discretion of the Committee, immediately paid to such
Participant by the applicable Employer or Employers, or shall otherwise be
segregated from the Plan, and such Participant(s) shall cease to have any
interest under the Plan. In the event the Participant has died, the foregoing
provisions of this subsection 3.2 shall apply to the Participant's interest
which is payable to the Participant's Beneficiary.

         3.3. Plan Not Contract of Employment. The Plan does not constitute a
contract of employment, and participation in the Plan will not give any employee
the right to be retained in the employ of any Employer or Affiliate nor any
right or claim to any benefit under the Plan, unless such right or claim has
specifically accrued under the terms of the Plan.

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         3.4. Agreements. Any Employee having been selected by the Committee as
a Participant shall, as a condition of participation, complete, and return to
the Committee, a Participation Agreement in such form and at such time as the
Committee shall prescribe.

                                    SECTION 4
                   AMOUNT AND PAYMENT OF SUPPLEMENTAL BENEFIT

         4.1. Amount of Supplemental Benefit. Subject to the terms and
conditions of the Plan, each Participant's "Supplemental Benefit," if any, shall
be determined in accordance with the following:

(a)      Determination of Supplemental Benefit. A Participant's "Supplemental
         Benefit" shall equal (i) the Participant's Target Benefit minus (ii)
         the Participant's Net Retirement Plan Benefit.

(b)      Determination of Target Benefit. A Participant's "Target Benefit" shall
         be the benefit the Participant would have been entitled to receive
         under the Retirement Plan if all of the following paragraphs (i)
         through (v) applied:

         (i)      The limitations of the Plan intended to comply with Code
                  section 401(a)(17) (which, as of the Effective Date, are set
                  forth in subsection 2.1(o)(v) of the Retirement Plan) had been
                  inapplicable to the determination of the Participant's benefit
                  under the Retirement Plan.

         (ii)     The limitations of the Plan intended to comply with Code
                  section 415 (which, as of the Effective Date, are set forth in
                  Article XII of the Retirement Plan) had been inapplicable to
                  the determination of the Participant's benefit under the
                  Retirement Plan.

         (iii)    The number "25" which appears two times in Section 5.1(a) of
                  the Retirement Plan (as of the Effective Date) had been
                  replaced in both instances with the number "20".

         (iv)     Subject to paragraph (iii) above, in the case of a Participant
                  to whom the provisions of Section 5.1(b) of the Retirement
                  Plan (relating to Participants with compensation of $220,000
                  or more) would otherwise apply, the provisions of Section
                  5.1(a) instead had been applied to such Participant.

         (v)      In the case of a Participant whose Compensation is determined
                  under the Retirement Plan after reduction to reflect elective
                  deferrals by the Participant of amounts that would otherwise
                  be included in Compensation in the absence of such deferral,
                  the Target Benefit shall be determined as though those
                  deferred amounts had been included in the determination of the
                  Participant's Compensation at the time they would have been
                  paid in the absence of such deferral. Conversely, such amounts
                  shall not be included in determining the Target Benefit when
                  they are paid at the end of the deferral period.

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         A Participant's "Target Benefit" shall be determined based on the type
         of benefit, and the form and time of payment applicable to the
         Participant's benefit under the Retirement Plan.

(c)      Determination of Net Retirement Plan Benefit. A Participant's "Net
         Retirement Plan Benefit" shall be the benefit the Participant has
         accrued under the Retirement Plan. A Participant's "Net Retirement Plan
         Benefit" shall be determined based on the type of benefit, and the form
         and time of payment applicable to the Participant's benefit under the
         Retirement Plan.

(d)      Early Retirement Eligibility. In applying the terms of the Retirement
         Plan to determine a Participant's Target Benefit under this subsection
         4.1, the definition of the term "Early Retirement Date" shall have the
         meaning set forth in Section 2 of this Plan, rather than the definition
         set forth in the Retirement Plan (which is set forth in the Retirement
         Plan in Section 2.1(z) as of the Effective Date).

         4.2. Vesting. Except as otherwise provided by this subsection 4.2, and
subject to the terms of the Plan, a Supplemental Benefit shall be payable under
the Plan to or on behalf of a Participant if he or she is vested in such benefit
as of the Date of Termination. If a Participant is not vested in his or her
Supplemental Benefit under this Plan as of the Date of Termination, then no
benefits shall be payable to or on behalf of the Participant under the Plan. A
Participant's vesting shall be subject to the following:

(a)      Vesting Date. A Participant shall become vested in the Supplemental
         Benefit at the time at which the Participant has completed ten Years of
         Credited Service (as that term is defined in the Retirement Plan). For
         the avoidance of doubt, it is recited here that, except as otherwise
         expressly provided in this subsection 4.2, a Participant shall not be
         vested in his or her Supplemental Benefit if the Participant has not
         completed ten Years of Credited Service.

(b)      Termination for Cause. Notwithstanding the provisions of paragraph (a)
         above, to the extent provided by the Participant's Employment
         Agreement, the Participant shall forfeit all benefits under the Plan
         upon the Participant's Date of Termination.

(c)      Termination by Employer without Cause and Constructive Discharge.
         Notwithstanding the provisions of paragraph (a) above, to the extent
         provided by the Participant's Employment Agreement, the Participant
         shall be vested in all benefits under the Plan upon the Participant's
         Date of Termination.

(d)      Effect on Restoration Plan. Notwithstanding the foregoing provisions of
         this subsection 4.2, if a Participant receives his or her benefits
         under this Plan as of the Date of Termination (regardless of whether
         such distribution occurs prior to, as of, or after the Date of
         Termination), then no benefit shall be payable to or on behalf of the
         Participant under the Restoration Plan. It is the intent of the Company
         and is a condition for participation in this Plan that there be no
         duplication of benefits earned under this Plan and the Restoration
         Plan.

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         4.3. Form of Payment and Commencement Date.

(a)      Payment of Supplemental Benefit. Except as otherwise provided in the
         Plan, the Supplemental Benefit payable to or on behalf of a Participant
         under this Plan shall be paid as the same type of benefit (including,
         without limitation, as a normal retirement benefit, postponed
         retirement benefit, death benefit, disability benefit, deferred vested
         benefit, early retirement benefit), and shall be paid in the form and
         at the time or times applicable to the Participant's benefit under the
         Retirement Plan, using the actuarial factors set forth in the
         Retirement Plan applicable to calculation and payment of benefits under
         the Retirement Plan. Except as otherwise provided in the Plan, payment
         of Supplemental Benefit shall commence on or about the same date as
         benefits commence under the Retirement Plan.

(b)      Form Elected by Participant. The Participant may elect a form of
         benefit payment under the Plan which is different from the form of
         payment applicable to the Participant's benefits under the Retirement
         Plan, provided that the form of payment elected by the Participant
         under this Plan is either (i) a form that would have been available to
         the Participant for distribution of his or her benefits under the
         Retirement Plan, or (ii) is a form that is permitted by the Committee.
         However, except as may otherwise be provided by the Committee, a
         Participant's election under this paragraph (b) shall be void unless it
         is filed with the Committee not less than 12 months prior to the date
         on which payments under this Plan would otherwise commence in the
         absence of such election. Any form of payment under this paragraph (b)
         shall be actuarially equivalent to the form of payment that would
         otherwise be payable to the Participant in the absence of this
         paragraph (b), using the actuarial assumptions set forth in the
         Retirement Plan or, if no such assumptions are set forth in the
         Retirement Plan, using such actuarial assumptions as the Committee
         determines to be reasonable after consultation with the actuary for the
         Retirement Plan. The election by the Participant under this paragraph
         (b) shall be in such form as the Committee requires.

(c)      Accelerated Payment. If a Participant's Date of Termination occurs
         during the period beginning on a Change of Control Date and ending on
         the last day of the 24th calendar month following the calendar month in
         which occurs a Change of Control Date, and at the Date of Termination
         the Participant is (or has become) vested in his or her Supplemental
         Benefit in accordance with subsection 4.2, then, not later than 30 days
         after the Date of Termination, in lieu of any other benefits under the
         Plan, and notwithstanding the foregoing provisions of this subsection
         4.3, the Participant shall be entitled to a lump sum payment which is
         the actuarial equivalent of the Participant's Supplemental Benefit. The
         foregoing payment provision also shall be applicable in the case of a
         Participant whose a Date of Termination is deemed to have occurred
         during that period in accordance with the final paragraph of the
         definition of "Change of Control Date" as set forth in paragraph 2(d),
         subject to the provisions of that paragraph relating to the time of
         payment. For purposes of this paragraph (c), the determination of
         actuarial equivalency will be made using the actuarial assumptions for
         determination of lump sums as set forth in the Retirement Plan or, if
         no such assumptions are set forth in the Retirement Plan, using such
         actuarial assumptions as the Committee determines to be reasonable
         after consultation with the actuary for the Retirement Plan; provided
         that in determining such

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         actuarial equivalence, the Participant's Supplemental Benefit shall be
         deemed to be payable immediately on the Date of Termination, so that
         the Early Retirement Adjustment Factors (as set forth in Article VII of
         the Retirement Plan on the Effective Date) shall not be applied to
         reduce the amount otherwise payable.

         4.4. Reemployed Participants. If, after incurring a Date of
Termination, a Participant who is otherwise entitled to receive benefits under
this Plan is reemployed by an Employer or Affiliate, no benefits will be paid
under this Plan following such reemployment while the Participant is an
Employee, and after the Participant's subsequent Date of Termination, any
benefits paid prior to such period of reemployment under this Plan and the
Restoration Plan shall actuarially reduce the Participant's Supplemental Benefit
(and/or the benefits under the Restoration Plan) payable to or on behalf of the
Participant after his or her subsequent Date of Termination.

         4.5. Restrictions on Alienation of Benefits. No right or benefit under
this Plan shall be subject to anticipation, alienation, sale, assignment,
pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell,
assign, pledge, encumber, or charge the same shall be void. No right or benefit
hereunder shall in any manner be liable for or subject to the debts, contracts,
liabilities, or torts of the person entitled to such benefit. Neither the
Company nor any Affiliate shall be entitled to set off against the amounts
payable to the Participant under this Plan any amounts owed to the Company or
the Affiliate by the Participant. If any Participant or the Participant's
Beneficiary under this Plan should become bankrupt or attempts to anticipate,
alienate, sell, assign, pledge, encumber, or charge any right to a benefit
hereunder, then, such right or benefit shall cease and terminate.

         4.6. Abandonment of Benefits. Each Participant and Beneficiary shall
file with the Committee, from time to time in writing, his or her post office
address and each change of post office address, and any communication addressed
to a Participant or Beneficiary at the last post office address filed with the
Committee, or if no such address was filed, then at the last post office address
as shown on the records of the Participant's employer, shall be binding on the
Participant or the Participant's Beneficiary for all purposes of the Plan, and
the Committee shall not be obliged to search for or ascertain the whereabouts of
any Participant or Beneficiary; provided, that the Committee shall mail an
annual notice of unpaid benefits to such person at such last post office
address. If the Committee furnishes such annual notice to any Participant, or
Beneficiary of a deceased Participant, that the Participant is entitled to a
distribution, and the Participant or Beneficiary fails to claim such
distribution or make their whereabouts known to the Committee within five years
thereafter, such benefits shall be deemed forfeited and retained by or returned
to the Company.

         4.7. Information Required of Participants. Payment of benefits under
the Plan shall begin as of the payment date provided in this Plan and no formal
claim shall be required therefor; provided that a Participant may file a claim
for benefits in accordance with procedures established by the Committee; and
further provided that the Committee may make reasonable requests of Participants
and Beneficiaries to furnish information which is reasonably necessary and
appropriate to the orderly administration of the Plan, and payments under the
Plan are conditioned upon the Participants and Beneficiaries promptly furnishing
true, full and complete information as the Committee may reasonably request.

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         4.8. Benefits Payable to Incompetents. Any benefits payable hereunder
to a minor or person under legal disability may be made, at the discretion of
the Committee, (i) directly to the said person, or (ii) to a parent, spouse,
relative by blood or marriage, or the legal representative of said person. The
Committee shall not be required to see to the application of any such payment,
and the payee's receipt shall be a full and final discharge of the Committee's
responsibility hereunder.

         4.9. Tax Withholding. All distributions under the Plan are subject to
withholding of all applicable taxes.

                                    SECTION 5
                           SOURCE OF BENEFIT PAYMENTS

         5.1. Liability for Benefit Payments. Any benefit payable under the Plan
shall be paid from the general revenues of the Employer with respect to whose
employee or former employee the benefit is payable, subject to the following:

(a)      Multiple Employers Of Participant. If a Participant has been employed
         by more than one Employer, the portion of the Participant's Plan
         benefits payable by any such Employer shall be in proportion to the
         benefit the Participant accrued under this Plan for his or her period
         of service with that Employer, as determined by the Committee.

(b)      Effect of Transaction. If, as a result of a sale or other transaction,
         the Participant's employer after the transaction is not, or ceases to
         be, an Affiliate (and is or becomes an entity that is separate from the
         Company), then, in determining liability for benefits due to the
         Participant under the Plan, the foregoing provisions of this subsection
         5.1 shall be applicable to companies which remain Employers under the
         Plan, and also to companies which are not Employers or Affiliates.

         5.2. Discretionary Establishment of Trust. An Employer, in its
discretion, may establish a trust, and may use the assets of the trust, to
partially or fully satisfy its obligations under the Plan. Neither a Participant
nor any other person shall, by reason of the Plan or any such trust, acquire any
right in or title to any assets, funds or property of the Employers whatsoever,
including, without limitation, any specific funds, assets, or other property
which the Employers, in their sole discretion, may set aside in anticipation of
a liability under the Plan. A Participant shall have only a contractual right to
the amounts, if any, payable under the Plan, unsecured by any assets of the
Employers. Subject to the provisions of paragraph 5.3, nothing contained in the
Plan shall constitute a guarantee by any of the Employers that the assets of the
Employers shall be sufficient to pay any benefits to any person.

         5.3. Secondary Liability for Payment. To the extent that the Company
and/or an Affiliate are not otherwise obligated to provide benefits to any
Participant by the provisions of subsection 5.1, the Company shall take such
actions as are necessary, and cause each Affiliate to take such actions as are
necessary, to cause each such entity (the "Guarantors") to jointly and severally
guarantee the payment of benefits otherwise due to the Participant under this
Plan. However, in no event shall the guarantee provided by the preceding
sentence give rise to an obligation unless the employer or employers primarily
obligated to make the payment do not pay

                                       11
<PAGE>

such benefit within 30 days of the due date for such payment, and no entity
organized under the laws of any jurisdiction outside the United States shall
have an obligation to enter into such guarantee. Each of the Guarantors shall be
subrogated to the Participant's rights under the Plan to the extent of any
payments by each such Guarantor to or on account of the Participant under this
subsection 5.3. For the avoidance of doubt, it is recited here that after a
transaction described in paragraph 5.1(b), this subsection 5.3 shall continue to
be applicable to a Participant affected by such transaction.

                                    SECTION 6
                                    COMMITTEE

         6.1. Administration. The authority to control and manage all aspects of
the operation and administration of the Plan shall be vested in the Committee.
The Committee shall be selected by the Board. If the Committee does not exist,
or for any other reason determined by the Board, the Board may take any action
under the Plan that would otherwise be the responsibility of the Committee.
Until otherwise provided by the Board in accordance with this Section 6, the
Committee shall be comprised of the members of the Compensation and Stock Option
Committee of the Company.

         6.2. Powers of Committee. The Committee is authorized to (i) interpret
the Plan; (ii) to establish, amend, and rescind any rules and regulations
relating to the Plan; (iii) to determine the terms and provisions of any
agreements made pursuant to the Plan; (iv) to accelerate the vesting of any
Participant; (v) to select a rate of accrual for any Participant that results in
the Participant being fully accrued in his Supplemental Benefit with less than
twenty Years of Benefit Accrual Service; (vi) to award additional Years of
Credited Service and Years of Benefit Accrual Service to any Participant; and
(vii) to make all other determinations that may be necessary or advisable for
the administration of the Plan. Except as otherwise specifically provided by the
Plan, any determinations to be made by the Committee under the Plan shall be
decided by the Committee in its sole discretion. Any interpretation of the Plan
by the Committee and any decision made by it under the Plan is final and binding
on all persons.

         6.3. Delegation by Committee. The Committee may allocate all or any
portion of its responsibilities and powers to any one or more of its members and
may delegate all or any part of its responsibilities and powers to any person or
persons selected by it. Any such allocation or delegation may be revoked at any
time.

         6.4. Information to be Furnished to Committee. The Employers and
Affiliates shall furnish the Committee with such data and information as may be
required for it to discharge its duties. The records of the Employers and
Affiliates as to an employee's or Participant's employment, termination of
employment, leave of absence, reemployment and compensation shall be conclusive
on all persons unless determined to be incorrect. Participants and other persons
entitled to benefits under the Plan must furnish the Committee such evidence,
data or information as the Committee considers desirable to carry out the Plan.

         6.5. Liability and Indemnification of Committee. No member or
authorized delegate of the Committee shall be liable to any person for any
action taken or omitted in connection with the administration of the Plan unless
attributable to the person's own fraud or willful misconduct;

                                       12
<PAGE>

nor shall the Employers be liable to any person for any such action unless
attributable to fraud or willful misconduct on the part of a director or
employee of the Employers. The Committee, the individual members thereof, and
persons acting as the authorized delegates of the Committee under the Plan,
shall be indemnified by the Employers against any and all liabilities, losses,
costs and expenses (including legal fees and expenses) of whatsoever kind and
nature which may be imposed on, incurred by or asserted against the Committee or
its members or authorized delegates by reason of the performance of a Committee
function if the Committee or its members or authorized delegates did not act
dishonestly or in willful violation of the law or regulation under which such
liability, loss, cost or expense arises. This indemnification shall not
duplicate but may supplement any coverage available under any applicable
insurance.

         6.6. Expenses. The expenses of administering the Plan shall be borne by
the Company.

                                    SECTION 7
                                CLAIMS PROCEDURE

         7.1. Claims Review Procedures. The following procedures shall apply to
claims for benefits under the Plan.

(a)      Denial of Claim. If a claim for benefits is wholly or partially denied,
         the claimant shall be given notice in writing of the denial within a
         reasonable time after the receipt of the claim, but not later than 90
         days after the receipt of the claim. However, if special circumstances
         require an extension, written notice of the extension shall be
         furnished to the claimant before the termination of the 90-day period.
         In no event shall the extension exceed a period of 90 days after the
         expiration of the initial 90-day period. The notice of the denial shall
         contain the following information written in a manner that may be
         understood by a claimant:

         (i)      the specific reasons for the denial;

         (ii)     specific reference to pertinent Plan provisions on which the
                  denial is based;

         (iii)    a description of any additional material or information
                  necessary for the claimant to perfect such claim and an
                  explanation of why such material or information is necessary;

         (iv)     an explanation that a full and fair review by the Committee of
                  the denial may be requested by the claimant or his or her
                  authorized representative by filing a written request for a
                  review with the Committee within 60 days after the notice of
                  the denial is received; and

         (v)      if a request for review is filed, the claimant or his or her
                  authorized representative may review pertinent documents and
                  submit issues and comments in writing within the 60-day period
                  described in paragraph (iv) above.

(b)      Decisions After Review. The decision of the Committee with respect to
         the review of the denial shall be made promptly and in writing, but not
         later than 60 days after the Committee receives the request for the
         review. However, if special circumstances require

                                       13
<PAGE>

         an extension of time, a decision shall be rendered not later than 120
         days after the receipt of the request for review. A written notice of
         the extension shall be furnished to the claimant prior to the
         expiration of the initial 60-day period. The claimant shall be given a
         copy of the decision, which shall state, in a manner calculated to be
         understood by the claimant, the specific reasons for the decision and
         specific reasons for the decision and specific references to the
         pertinent Plan provisions on which the decision is based.

(c)      Review after Change of Control. In the event that if a request for
         review is filed in accordance with paragraph (a)(v) above within the
         period beginning on the Change of Control Date and ending on the last
         day of the 24th calendar month following the calendar month in which a
         Change of Control Date, the claimant shall, in addition to the rights
         provided in paragraph (a)(v), be permitted to submit additional
         evidence to the Committee in support of the claim, and to receive, as
         part of the appeal process, a complete review by the Committee of all
         of the such evidence and all previously submitted evidence.

(d)      Other Procedures. Notwithstanding the foregoing, the Committee may, in
         its discretion, adopt different procedures for different claims without
         being bound by past actions. Any procedures adopted, however, shall be
         designed to afford a claimant a full and fair review of his or her
         claim and shall comply with applicable regulations under ERISA.

         7.2. Finality of Determinations; Exhaustion of Remedies. To the extent
permitted by law, decisions reached under the claims procedures set forth in
subsection 7.1 shall be final and binding on all parties. No legal action for
benefits under the Plan shall be brought unless and until the claimant has
exhausted his or her remedies under subsection 7.1.

                                    SECTION 8
                                  MISCELLANEOUS

         8.1. Tax Consequences Not Guaranteed. The Employers do not warrant that
this Plan will have any particular tax consequences for Participants or
Beneficiaries and shall not be liable to them if tax consequences they
anticipate do not actually occur. Neither the Company nor the Affiliates shall
have any obligation to indemnify a Participant or Beneficiary for lost tax
benefits (or other damage or loss) in the event benefits are cancelled as
permitted under subsection 4.4, accelerated, or because of change in Plan design
or funding.

         8.2. Severability. If any provision of the Plan is held invalid or
illegal for any reason, any illegality or invalidity shall not affect the
remaining provisions of the Plan, and the Plan shall be construed and enforced
as if the illegal or invalid provision had never been contained therein. The
Company shall be permitted to correct and remedy such questions of illegality or
invalidity by amendment.

         8.3. Benefits Under Other Plans. Benefits payable under the Plan shall
be disregarded for purposes of determining the benefits under the plans of the
Company and the Affiliates (including, without limitation the plans intended to
be qualified under section 401(a) of the Code), except as otherwise specifically
provided in the affected plan.

                                       14
<PAGE>

         8.4. Gender and Number. Except when otherwise indicated by the context,
any masculine terminology when used in the Plan shall also include the feminine
gender, and the definition of any term in the singular shall also include the
plural.

         8.5. Action by Company or Affiliate. Any action required or permitted
to be taken by the Company or any Employer or other Affiliate shall be by
resolution of its board of directors or comparable governing body, or by action
of one or more members of the board or comparable governing body (including a
committee of the board) who are duly authorized to act for the board, or by a
duly authorized officer of such company. Until action to the contrary is taken
by the Board (determined without regard to this subsection 8.5), the Chief
Executive Officer of the Company is authorized to act for the Board with respect
to all matters under the plan, except that, without additional authorization by
the Board, the Chief Executive Officer shall not be authorized to amend the
Plan.

         8.6. Successors. The Plan shall be binding upon and inure to the
benefit of the Company and any successors of the Company, subject to the
following:

(a)      The Company will require any successor (whether direct or indirect, by
         purchase, merger, consolidation or otherwise) to all or substantially
         all of the business or assets of the Company to expressly assume and
         agree to perform the Plan 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.

(b)      Subject to subsection 5.3, after a successor assumes this Plan in
         accordance with this subsection 8.6, only such successor shall be
         liable for amounts payable after such assumption, and no other
         companies shall have liability for amounts payable after such
         assumption.

         8.7. Evidence. Evidence required of the Participant under the Plan may
be by certificate, affidavit, document or other information which the Committee
considers pertinent and reliable, and signed, made or presented by the proper
party or parties.

         8.8. Applicable Laws. The Plan shall be construed and administered in
accordance with the laws of the State of Oklahoma to the extent that such laws
are not preempted by the laws of the United States of America.

         8.9. Attorney Fees. If any contest or dispute shall arise between an
Employer (or the Committee) and a Participant regarding the Participant's right
to benefits under the Plan, the following will apply:

(a)      The Employer otherwise responsible for payment of the benefits shall
         reimburse Participant for all legal fees and expenses reasonably
         incurred by Participant in connection with such contest or dispute
         (provided that such legal fees are calculated on an hourly, and not on
         a contingency fee, basis), costs and expenses incurred by the
         Participant in connection with such enforcement or defense.

                                       15
<PAGE>

(b)      The Participant shall be entitled to select his or her legal counsel;
         provided, however, that such right of selection shall not affect the
         requirement that any costs and expenses reimbursable under this
         subsection 8.9 be reasonable.

(c)      Except as otherwise provided in paragraph (d) below, reimbursement by
         the Employer shall be made as soon as practicable following the
         resolution of the contest or dispute to the extent the Employer
         receives appropriate documentation evidencing the incurrence of such
         attorneys' fees, costs, and expenses. However, subject to paragraph (d)
         below, no such reimbursement shall be due under this subsection 8.9 if
         the Participant is not successful in respect of any of the
         Participant's material claims or defenses brought, raised or pursued in
         connection with such contest or dispute.

(d)      In the event that (i) within the period beginning on the Change of
         Control Date and ending on the last day of the 24th calendar month
         following the calendar month in which a Change of Control Date, a claim
         (a "Claim") for arbitration or a lawsuits filed by a Participant in
         connection with a dispute, claim, or controversy regarding the
         Participant's rights and obligations under the Plan or (ii) a Claim has
         been filed prior to a Change of Control Date but has not been resolved
         as of the Change of Control Date, then payments required under this
         subsection 8.9 with respect to such Claim shall be made by the Employer
         to the Participant (or directly to the Participant's attorney) promptly
         following submission to the Employer of appropriate documentation
         evidencing the incurrence of such attorneys' fees, costs, and expenses.
         If the Participant is not successful in respect of any of the
         Participant's material claims or defenses brought, raised or pursued in
         connection with such contest or dispute, the Participant shall repay
         the Employer the amount of any such reimbursement received in
         connection with such dispute in accordance with this subsection 8.9
         (without interest) as soon as practicable following the resolution of
         such contest or dispute.

(e)      The guarantee of payment in accordance with subsection 5.3 of amounts
         due under subsection 5.1 shall apply to this subsection 8.9 as though
         amounts due under this subsection 8.9 were benefits payable under
         subsection 5.1.

                                    SECTION 9
                            AMENDMENT AND TERMINATION

         The Board may, at any time, amend or terminate the Plan, subject to the
following:

(a)      Reduction of Accrued Benefits. Neither an amendment nor termination of
         the Plan shall reduce or impair the benefits accrued by or on behalf of
         any Participant whose Date of Termination occurred prior to the date on
         which such amendment or termination is adopted by the Board. Neither an
         amendment nor termination of the Plan shall reduce or impair the
         benefits accrued by or on behalf of any Participant whose Date of
         Termination occurs on or after the date on which such amendment or
         termination is adopted by the Board, as compared to the benefits
         accrued under the Plan on the date immediately prior to the date on
         which the amendment or termination is adopted by the Board, if each
         Participant who had not previously incurred a Date of Termination was
         deemed to have incurred a Date of Termination immediately prior to the
         date of such adoption and

                                       16
<PAGE>

         commenced payment of benefits under the Plan on the earliest
         commencement date that would be permitted under the terms of the Plan
         (as in effect prior to the amendment or termination) following such
         deemed Date of Termination.

(b)      Vesting Rate. Neither an amendment nor termination of the Plan shall
         adversely affect the Participant's right to vest in benefits in
         accordance with paragraph 4.2(a) (relating to vesting after completion
         of ten years of service), regardless of whether such vesting would
         occur on, before, or after the date such amendment or termination is
         adopted. However, the limitation in this paragraph (b) shall not apply
         to persons who first become Participants in the Plan after such
         amendment or termination is adopted.

(c)      Amendment of Change of Control Provisions. In no event shall any
         amendment or termination adopted by the Board during the period
         beginning six months prior to any Change of Control Date and ending on
         the last day of the 24th calendar month following the calendar month in
         which occurs a Change of Control Date adversely affect the
         Participant's right to vest in accordance with paragraph 4.2(c)
         (relating to vesting pursuant to the terms of the Employment Agreement)
         during the period beginning six months prior to any Change of Control
         Date and ending on the last day of the 24th calendar month following
         the calendar month in which occurs a Change of Control Date.

(d)      Accrual Rate After Change of Control. In no event shall any amendment
         or termination adopted by the Board during the period beginning six
         months prior to a Change of Control Date and ending on the last day of
         the 24th calendar month following the calendar month in which occurs a
         Change of Control Date result in a reduction in the rate (as compared
         to the rate that would have applied in the absence of such amendment or
         termination) at which benefits would be accrued for service during the
         period beginning on the Change of Control Date and ending on the last
         day of the 24th calendar month following the calendar month in which
         occurs a Change of Control Date.

(e)      Amendment of Employment Agreement Provisions. In no event shall any
         amendment or termination adopted by the Board adversely affect any
         Participant's vesting rights under the Participant's Employment
         Agreement.

(f)      Changes in Retirement Plan. If the benefit accrual rate under the
         Retirement Plan is terminated or curtailed, the benefit accrual rate
         under this Plan shall be similarly terminated or curtailed. However, if
         the benefit accrual rate under the Retirement Plan is terminated or
         curtailed during the period beginning on a Change of Control Date and
         ending on the last day of the 24th calendar month following the
         calendar month in which occurs a Change of Control Date, then the
         benefit accrual rate under this Plan shall be deemed to have been
         modified so that the Supplemental Benefit provided under this Plan will
         equal the excess of (i) the Target Benefit that would have been
         provided if the benefit accrual rate under the Retirement Plan had not
         been terminated or curtailed during such period, over (ii) the Net
         Retirement Plan Benefit (determined after taking into account such
         termination or curtailment to the extent it is applicable to the
         Participant).

For purposes of applying the limitations of paragraphs (a) through (f) above,
(I) a modification restricting the persons eligible to participate in the Plan
shall be deemed to be an amendment of

                                       17
<PAGE>

the Plan on the date such modification is adopted by the Committee; and (II) the
determination of the benefits accrued or accruing by or on behalf of a
Participant before and after adoption of an amendment or termination of the Plan
shall take into account the Participant's benefits accrued or accruing under
this Plan, the benefits accrued or accruing under the Restoration Plan, and the
benefits accrued or accruing under any other defined benefit plan that is a
successor to either this Plan or the Restoration Plan.

         IN WITNESS WHEREOF, the Company and Devon Energy Production Company,
L.P. have caused this instrument to be executed by their duly authorized
officers in a number of copies, each of which shall be deemed an original but
all of which shall constitute one and the same instrument, this 24th day of
January, 2002, but effective as of August 1, 2001.

                                       DEVON ENERGY CORPORATION

                                       By: /s/ J. Larry Nichols
                                          --------------------------------------
                                          J. Larry Nichols
                                          President and Chief Executive Officer

                                       DEVON ENERGY PRODUCTION COMPANY, L.P., an
                                       Oklahoma limited partnership

                                       By: /s/ Marian J. Moon
                                          --------------------------------------
                                          Marian J. Moon
                                          Senior Vice President

                                       18<PAGE>

                                                                   EXHIBIT 10.26

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT, made and entered into as of the Effective Date, by and
between ____________ (the "Executive") and Devon Energy Corporation (the
"Company");

                                WITNESSETH THAT:

         WHEREAS, the parties desire to enter into this Agreement pertaining to
the employment of the Executive by the Company;

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth below, it is hereby covenanted and agreed by the Executive and the
Company as follows:

         1. Definitions and Construction. The following words, terms, and
phrases used in this Agreement shall have the meanings set forth in this
paragraph 1:

(a)      "Affiliate" means any entity during any period that it is an affiliate
         of the Company, as the term "affiliate" is defined under Rule 12b-2 of
         the Exchange Act (provided that for this purpose, "Affiliate" shall
         exclude natural persons).

(b)      The "Agreement Term" shall be the period beginning on the Effective
         Date and ending on the three-year anniversary of the Effective Date.
         Thereafter, as of the date the Agreement Term (as it may be extended
         from time to time under this paragraph) would otherwise end, the
         Agreement Term will be automatically extended for 12 months, unless one
         party to this Agreement provides notice of non-renewal to the other at
         least six months before the day that would be the last day of the
         Agreement Term in the absence of such renewal. If a Change of Control
         Date occurs during the Agreement Term, the Agreement Term shall be
         automatically extended to the later of the last day of the 24th
         calendar month following the calendar month in which a Change of
         Control Date occurs, or the date on which the Agreement Term would
         expire in the absence of this sentence. In the event of an extension of
         the Agreement Term by reason of a Change of Control Date, then, at the
         end of such extended term, the Agreement Term will be automatically
         extended for 12-month periods, unless one party to this Agreement
         provides notice of non-renewal to the other at least six months before
         the day that would be the last day of the Agreement Term in the absence
         of such renewal. If a notice of non-renewal has been provided by the
         Company to the Executive, but prior to the date on which the Agreement
         Term would end after taking into account the notice of non-renewal a
         Change of Control Date occurs, then, regardless of the notice of
         non-renewal, the automatic 24-month renewal upon a Change of Control
         Date shall apply. However, if a notice of non-renewal has been provided
         by the Executive to the Company, the occurrence of a Change of Control
         Date after such notice shall not extend the Agreement Term under this
         paragraph.

(c)      "Aggregate Annual Compensation" shall mean the sum of (i) and (ii)
         below:

                                    1 of 28
<PAGE>

         (i)      The Executive's annual base Salary rate in effect on the date
                  immediately prior to the Executive's Date of Termination, or
                  any greater annual base Salary rate applicable to the
                  Executive during the two-year period prior to the Date of
                  Termination.

         (ii)     An amount equal to the largest annual bonus paid or payable to
                  the Executive for the three consecutive years prior to the
                  year in which the Executive's Date of Termination occurs (or,
                  if fewer than three, for the years in which the Executive is
                  employed).

         Determinations under this paragraph (c) shall be subject to the
following:

         (I) If any portion of the Executive's Salary has been reduced to
         reflect elective deferrals of amounts that would otherwise be included
         in Salary in the absence of such deferral, those deferred amounts shall
         be included in the determination of the Executive's Salary at the time
         they would have been paid in the absence of such deferral. Conversely,
         such amounts shall not be included in the Executive's Salary when they
         are paid at the end of the deferral period.

         (II) A bonus is deemed paid for a year if it is earned as a result of
         services that are performed by the Executive in that year. If any
         portion of the Executive's bonus has been reduced to reflect elective
         deferrals of amounts that would otherwise be included in bonus in the
         absence of such deferral, those deferred amounts shall be included in
         the determination of the Executive's bonus without regard to such
         deferral. Conversely, such amounts shall not be included in the
         Executive's bonus when they are paid at the end of the deferral period.

         (III) The determination of the bonus amount paid or payable to the
         Executive for any year shall be annualized if the Executive is not
         employed by the Company or an Affiliate for the entire year.

         (IV) If the Executive's Date of Termination occurs within the period
         beginning on a Change of Control Date and ending on the last day of the
         24th calendar month following the calendar month in which the Change of
         Control Date occurs, then the amount determined in accordance with
         paragraph (ii) above shall be not less than the largest of the annual
         bonus amounts paid or payable to the Executive for the three
         consecutive years prior to the year in which the Change of Control Date
         occurs (or, if fewer than three, for the years in which the Executive
         is employed).

         (V) For the avoidance of doubt, it is recited here that "Aggregate
         Annual Compensation" will not include the following: (1) amounts
         realized from the exercise of a nonqualified stock option; (2) amounts
         realized when restricted stock (or property) held by the Executive
         either becomes freely transferable or is no longer subject to a
         substantial risk of forfeiture; and (3) amounts realized from the sale,
         exchange or other disposition of stock acquired under an incentive
         stock option or an employee stock purchase plan.

                                    2 of 28
<PAGE>

(d)      "Basic Benefits" means health, dental, and life benefits (including
         accidental death/dismemberment) for the Executive and the Executive's
         family.

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

(f)      "Cause" shall mean the occurrence of the Executive's Date of
         Termination for one of the following reasons: (i) the conviction of or
         plea of guilty or nolo contendre to a felony by a federal or state
         court of competent jurisdiction; (ii) an act or acts of dishonesty
         taken by the Executive and intended to result in substantial personal
         enrichment of the Executive at the expense of the Company or its
         shareholders; or (iii) the Executive's "willful" failure to follow a
         direct lawful written order from his or her supervisor, within the
         reasonable scope of the Executive's duties, which failure is not cured
         by the Executive within 30 days after the receipt of written notice
         thereof given by the Company. For purposes of this paragraph (f):

         (I)      No act, or failure to act, on the Executive's part shall be
                  deemed "willful" unless done, or omitted to be done, by the
                  Executive not in good faith and without reasonable belief that
                  the Executive's action or omission was in the best interest of
                  the Company. Further, the Executive's inability to perform his
                  or her duties due to a physical or mental condition that
                  qualifies the Executive for benefits under the Company's
                  short-term disability policy shall not be considered
                  "willful."

         (II)     The Executive shall not be deemed to have been terminated for
                  Cause unless and until there shall have been delivered to the
                  Executive a copy of the resolution duly adopted by the
                  affirmative vote of not less than three-fourths (3/4ths) of
                  the entire membership of the Board at a meeting of the Board
                  called and held for such purpose (after reasonable notice to
                  the Executive and an opportunity for the Executive, together
                  with the Executive's counsel, to be heard before the Board),
                  finding that in the good faith opinion of the Board the
                  Executive was guilty of conduct set forth in clauses (i),
                  (ii), or (iii) above and specifying the particulars thereof in
                  detail.

(g)      A "Change of Control Date" shall be deemed to have occurred each time
         any one of the events described in paragraphs (i), (ii), (iii), or (iv)
         below occurs; provided that if a Change of Control Date occurs by
         reason of an acquisition by any Person that comes within the provisions
         of paragraph (i) below), no addition Change of Control Date shall be
         deemed to occur under such paragraph (i) by reason of subsequent
         changes in holdings by such Person (except if the holdings by such
         Person are reduced below 30% and thereafter increase to 30% or above).
         For the purpose of this paragraph (g), the term "Company" shall include
         Devon Energy Corporation and any successor thereto.

         (i)      The acquisition by any individual, entity or group (within the
                  meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act)
                  (a "Person") if, immediately after such acquisition, such
                  Person has beneficial ownership (within the meaning of Rule
                  13d-3 promulgated under the Exchange Act) of 30% or more of
                  either (I) the then

                                    3 of 28
<PAGE>
                  outstanding shares of common stock of the Company (the
                  "Outstanding Company Common Stock") or (II) the combined
                  voting power of the then outstanding voting securities of the
                  Company entitled to vote generally in the election of
                  directors (the "Outstanding Company Voting Securities");
                  provided, however, that the following acquisitions shall not
                  constitute a Change of Control Date: (A) any acquisition by an
                  underwriter temporarily holding securities pursuant to an
                  offering of such securities; (B) any acquisition by the
                  Company; (C) any acquisition by any employee benefit plan (or
                  related trust) sponsored or maintained by the Company or any
                  corporation controlled by the Company; or (D) any acquisition
                  by any corporation pursuant to a transaction which complies
                  with clauses (A), (B), and (C) of paragraph (iii) below.

         (ii)     Individuals who, as of the Effective Date, constitute the
                  Board (the "Incumbent Board") cease for any reason to
                  constitute at least a majority of the Board; provided,
                  however, that any individual becoming a director subsequent to
                  the Effective Date whose election, appointment or nomination
                  for election by the Company's shareholders was approved by a
                  vote of at least a majority of the directors then comprising
                  the Incumbent Board shall be considered as though such
                  individual were a member of the Incumbent Board, but
                  excluding, for purposes of this definition, any such
                  individual whose initial assumption of office occurs as a
                  result of an actual or publicly threatened election contest
                  (as such terms are used in Rule 14a-11 promulgated under the
                  Exchange Act) with respect to the election or removal of
                  directors or other actual or publicly threatened solicitation
                  of proxies or consents by or on behalf of a Person other than
                  the Board.

         (iii)    A reorganization, share exchange, merger or consolidation (a
                  "Business Combination"), in each case, unless, following such
                  Business Combination, (A) all or substantially all of the
                  individuals and entities who were the beneficial owners,
                  respectively, of the Outstanding Company Common Stock and
                  Outstanding Company Voting Securities immediately prior to
                  such Business Combination beneficially own, directly or
                  indirectly, more than 50% of, respectively, the then
                  outstanding shares of common stock and the combined voting
                  power of the then outstanding voting securities entitled to
                  vote generally in the election of directors, as the case may
                  be, of the ultimate parent entity resulting from such Business
                  Combination (including, without limitation, an entity which,
                  as a result of such transaction, has ownership of the Company
                  or all or substantially all of the assets of the Company
                  either directly or through one or more subsidiaries) in
                  substantially the same relative proportions as their
                  ownership, immediately prior to such Business Combination of
                  the Outstanding Company Common Stock and Outstanding Company
                  Voting Securities, as the case may be, (B) no Person
                  (excluding any employee benefit plan (or related trust) of the
                  Company or such corporation resulting from such Business
                  Combination) beneficially owns, directly or indirectly, 30% or
                  more of, respectively, the then outstanding common stock of
                  the ultimate parent entity resulting from such Business
                  Combination or the combined voting power of the

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                  then outstanding voting securities of such entity except to
                  the extent that such ownership existed prior to the Business
                  Combination, and (C) at least a majority of the members of the
                  board of directors of the corporation resulting from such
                  Business Combination were members of the Incumbent Board at
                  the time of the execution of the initial agreement, or of the
                  action of the Incumbent Board providing for such Business
                  Combination, or were elected, appointed or nominated by the
                  Incumbent Board.

         (iv)     Approval by the shareholders of the Company of (A) a complete
                  liquidation or dissolution of the Company or, (B) the sale or
                  other disposition of all or substantially all of the assets of
                  the Company, other than to an entity with respect to which
                  following such sale or other disposition, (1) more than 50%
                  of, respectively, the then outstanding shares of common stock
                  of such entity and the combined voting power of the then
                  outstanding voting securities of such entity entitled to vote
                  generally in the election of directors is then beneficially
                  owned, directly or indirectly, by all or substantially all of
                  the individuals and entities who were the beneficial owners,
                  respectively, of the Outstanding Company Common Stock and
                  Outstanding Company Voting Securities immediately prior to
                  such sale or other disposition in substantially the same
                  relative proportions as their ownership, immediately prior to
                  such sale or other disposition, of the Outstanding Company
                  Common Stock and Outstanding Company Voting Securities, as the
                  case may be, (2) less than 30% of, respectively, the then
                  outstanding shares of common stock of such entity and the
                  combined voting power of the then outstanding voting
                  securities of such entity entitled to vote generally in the
                  election of directors is then beneficially owned, directly or
                  indirectly, by any Person (excluding any employee benefit plan
                  (or related trust) of the Company or such entity), except to
                  the extent that such Person owned 30% or more of the
                  Outstanding Company Common Stock or Outstanding Company Voting
                  Securities prior to the sale or disposition, and (3) at least
                  a majority of the members of the board of directors of such
                  entity were members of the Incumbent Board at the time of the
                  execution of the initial agreement, or of the action of the
                  Incumbent Board providing for such sale or other disposition
                  of assets of the Company, or were elected, appointed or
                  nominated by the Incumbent Board.

         If (I) the Executive's Date of Termination occurs on or after the date
         of approval by the Company's shareholders of a transaction described in
         paragraph (iii) above; (II) the transaction so approved by shareholders
         is consummated and constitutes a Change of Control Date under paragraph
         (iii) above; and (III) prior to the consummation of such transaction,
         the Executive's Date of Termination occurs, then for purposes of
         applying the provisions of paragraph 6(e), the Change of Control Date
         shall be deemed to have occurred with respect to such Executive
         immediately prior to such Executive's Date of Termination provided
         that, to the extent that the application of this sentence results in
         the Executive becoming entitled to benefits under this Agreement,
         commencement of such benefits shall be required to occur not earlier
         than the date of the consummation of the transaction.

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<PAGE>

         If (A) the Executive's Date of Termination occurs prior to a Change of
         Control Date under circumstances described in paragraph 5(f) (relating
         to termination of employment by the Company without Cause); (B) the
         Executive reasonably demonstrates that such termination either:

                  (1) was at the request of a third party who had indicated an
                  intention or taken steps reasonably calculated to effect a
                  Change of Control Date or who effectuates a Change of Control
                  Date or

                  (2) was otherwise in connection with, or in anticipation of, a
                  Change of Control Date which actually occurs,

         then, for purposes of this Plan, a Change of Control Date with respect
         to the Executive shall be deemed to be the date immediately prior to
         the Executive's Date of Termination; provided that, to the extent that
         the application of this sentence results in the Executive becoming
         entitled to benefits under this Agreement, commencement of such
         benefits shall be required to occur not earlier than the date of the
         Change in Control or, in the case of a Change in Control described in
         paragraph (ii) above, consummation of the transaction.. If any such
         termination occurs while an agreement is pending and the effective
         provisions of such agreement provide for a transaction or transactions
         which, if consummated, would constitute a Change of Control Date, and
         such Change of Control Date occurs, then such termination shall
         conclusively be presumed to be in connection with a Change of Control
         Date.

(h)      "Code" means the Internal Revenue Code of 1986, as amended.

(i)      "Company" means Devon Energy Corporation, a Delaware corporation.

(j)      "Confidential Information" shall include all non-public information
         (including, without limitation, information regarding litigation and
         pending litigation) concerning the Company and the Affiliates which was
         acquired by or disclosed to the Executive during the course of
         employment with the Company, or during the course of consultation with
         the Company prior to the commencement of employment and following the
         Date of Termination (regardless of whether consultation is pursuant to
         paragraph 12).

(k)      "Date of Termination" means the last day the Executive is employed by
         the Company (including any successor to the Company as determined in
         accordance with paragraph 18). If the Executive becomes employed by the
         entity into which Devon Energy Corporation is merged, or the purchaser
         of substantially all of the assets of Devon Energy Corporation, or a
         successor to such entity or purchaser, the Executive shall not be
         treated as having terminated employment for purposes of this Agreement
         until such time as the Executive terminates employment with the
         successor (including, without limitation, the merged entity or
         purchaser). If the Executive is transferred to employment with Devon
         Energy Corporation (including a successor to Devon Energy Corporation)
         or an Affiliate, such transfer shall not constitute a termination of
         employment for purposes of this Agreement, provided that the new
         employer agrees to assume this Agreement and be substituted for the
         Company under this Agreement.

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(l)      The Executive shall be considered "Disabled" during any period in which
         a physical or mental disability which renders the Executive incapable,
         after reasonable accommodation, of performing the duties under this
         Agreement. The Executive shall be considered "Permanently Disabled"
         during any period in which the Executive is Disabled; provided,
         however, that the Executive shall not be considered to be "Permanently
         Disabled" on the Date of Termination unless, at that time (i) such
         disability is reasonably expected by the Executive's Supervisor to
         continue for at least 90 days after the Date of Termination, and (ii)
         at the Date of Termination, the Executive is eligible for income
         replacement benefits under the Company's long-term disability plan or
         another arrangement providing substantially similar benefits. In the
         event of a dispute as to whether the Executive is Disabled or
         Permanently Disabled, the Company may refer the same to a licensed
         practicing physician of the Company's choice, and the Executive agrees
         to submit to such tests and examinations as such physician shall deem
         appropriate.

(m)      "Effective Date" means January 1, 2002.

(n)      "Exchange Act" means the Securities Exchange Act of 1934.

(o)      "Good Reason" means:

         (i)      The assignment to the Executive of any duties inconsistent
                  with the provisions of paragraph 2(a), excluding for this
                  purpose an isolated, insubstantial and inadvertent action not
                  taken in bad faith and which is remedied by the Company within
                  15 days after receipt of written notice thereof given by the
                  Executive.

         (ii)     The provision of written notice to the Executive by the
                  Company that the Agreement Term will not be renewed (as
                  described in paragraph 1(b)), provided that for purposes of
                  paragraph 5(d)(I), the Executive shall be deemed to have
                  provided notice to the Company within a reasonable time after
                  having knowledge of the circumstances regarding Good Reason
                  if, and only if, the Executive provides such notice to the
                  Company within 90 days after receiving such notice of
                  non-renewal from the Company; and further provided that this
                  paragraph (ii) shall be without effect unless the notice
                  results in the Agreement Term ending prior to date which is
                  three years from the end of the then current Agreement Term
                  (determined as of the date such notice is provided).

         (iii)    Any failure by the Company to comply with any of the
                  provisions of this Agreement, other than an isolated,
                  insubstantial and inadvertent failure not occurring in bad
                  faith and which is remedied by the Company within 15 days
                  after receipt of written notice thereof given by the
                  Executive.

         (iv)     The Company's requiring the Executive to be based at any
                  office or location other than that which he or she occupied at
                  the Effective Date, or within 50 miles of such location,
                  except for periodic travel reasonably required in the
                  performance of the Executive's responsibilities.

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         (v)      Any purported termination by the Company of the Executive's
                  employment otherwise than as expressly permitted by this
                  Agreement.

         (vi)     Any failure by the Company to comply with and satisfy
                  paragraph 18.

(p)      A "Notice of Termination" means a dated notice which indicates the Date
         of Termination (not earlier than the date on which the notice is
         provided), and which indicates the specific termination provision in
         this Agreement relied on and which sets forth in reasonable detail the
         facts and circumstances, if any, claimed to provide a basis for
         termination of the Executive's employment under the provision so
         indicated.

(q)      "Restoration Plan" means the Devon Energy Corporation Benefit
         Restoration Plan.

(r)      "Retiree Medical Benefit Coverage" shall be the coverage in effect
         under the retiree medical benefit plan applicable to the Executive, or
         which would be applicable to the Executive if the Executive's
         employment then terminated and the Executive satisfied the applicable
         age and service requirements.

(s)      The Executive's "Supervisor" will be the person to whom the Executive
         reports. The Executive's "Supervisor" shall be the Chief Executive
         Officer of the Company.

(t)      "Supplemental Plan" means the Supplemental Retirement Income Plan of
         Devon Energy Corporation.

         2. Performance of Services. The Executive's employment with the Company
shall be subject to the following:

(a)      Subject to the terms of this Agreement, the Company hereby agrees to
         employ the Executive as its ___________________ during the Agreement
         Term, and the Executive hereby agrees to remain in the employ of the
         Company in such position during the Agreement Term. The Board may
         assign the Executive to a different position in the Company only with
         the consent of the Executive. The Executive may refuse to give his or
         her consent to any such assignment only if the Executive reasonably
         determines that such position would or is likely to result (i) in a
         diminution of the Executive's position, status, office, titles, or
         reporting requirements, or (ii) in the aggregate, in a diminution in
         the Executive's authority, duties, and responsibilities. This Agreement
         does not constitute a guarantee of continued employment but instead
         provides for certain rights and benefits for the Executive during
         employment, and in the event the Executive's employment with the
         Company terminates under the circumstances described herein. During the
         Agreement Term, while employed by the Company, the Executive's main
         office shall be at the Company's headquarters in Oklahoma City,
         Oklahoma. However, the Company is expected to establish operations in
         other locations within and outside of the United States of America,
         and, as part of the Executive's duties, the Executive may be required
         to travel to and work at other locations within and outside of the
         United States of America.

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<PAGE>

(b)      During the Agreement Term, while the Executive is employed by the
         Company, the Executive's full time energies and talents shall be
         devoted to serving in the position or positions determined in
         accordance with paragraph (a) above.

(c)      The Executive agrees to perform the duties under this Agreement
         faithfully and efficiently subject to the directions of the Executive's
         Supervisor. The Executive's duties may include providing services for
         both the Company and the Affiliates, as determined by the Executive's
         Supervisor; provided that the Executive shall not, without the
         Executive's consent, be assigned tasks that would be inconsistent with
         those of the position determined in accordance with paragraph (a)
         above. The Executive shall report to the Executive's Supervisor and
         shall have such authority, power, responsibilities and duties as are
         inherent in the positions (and the undertakings applicable to the
         positions) and necessary to carry out the responsibilities and the
         duties required hereunder. The Executive will also be subject to the
         Company policies that are applicable to the Company's other senior
         management employees.

(d)      Notwithstanding the foregoing provisions of this paragraph 2, during
         the Agreement Term, the Executive may devote reasonable time to
         activities other than those required under this Agreement, including
         the supervision of the Executive's personal investments, and activities
         involving professional, charitable, community, educational, religious
         and similar types of organizations, speaking engagements, membership on
         the boards of directors of other organizations, and similar types of
         activities, to the extent that such other activities do not, in the
         judgment of the Executive's Supervisor, inhibit or prohibit the
         performance of the Executive's duties under this Agreement, or conflict
         in any material way with the business of the Company or any Affiliate;
         provided, however, that the Executive shall not serve on the board of
         any business, hold any other position with any business, or otherwise
         engage in any business activity, without the consent of the Executive's
         Supervisor.

(e)      Subject to the terms of this Agreement, the Executive shall not be
         required to perform services under this Agreement during any period
         that the Executive is Disabled. During the period in which the
         Executive is Disabled, the Company may appoint a temporary replacement
         to assume the Executive's responsibilities.

         3. Compensation. Subject to the terms of this Agreement, during the
Agreement Term, while the Executive is employed by the Company, the Company
shall provide compensation for services as follows:

(a)      Salary. The Executive shall receive, for each 12-consecutive month
         period beginning on the Effective Date and each anniversary thereof, in
         substantially equal monthly or more frequent installments, an annual
         base salary of not less than $________ (the "Salary"). The Executive's
         Salary rate shall be reviewed by the Executive's Supervisor on or about
         December of each year during the Agreement Term, while the Executive is
         employed by the Company, to determine whether an increase in the amount
         of Salary is appropriate. In no event shall the Salary of the Executive
         be reduced to an amount that is less than the amount specified in this
         paragraph (a), or to an amount that is less than the amount that

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         the Executive was previously receiving, except to the extent that
         reductions of the same percentage are being made at the same time to
         the salaries of all other Company officers in the corporate office at
         or above the vice-president level, and such Salary shall be restored to
         its prior level when, and to the same extent, as the restoration that
         applies to the other officers.

(b)      Bonus. The Executive shall participate in an annual bonus program. For
         each annual bonus period while the Executive is employed by the
         Company, the Executive's bonus possibility shall be not less than the
         bonus possibility offered to other similarly situated executives of the
         Company for that year. However, in no event shall the Executive's bonus
         possibility for any year, excluding the period beginning on the date
         the Executive is first employed by the Company and ending on the end of
         the bonus period in which such hire date occurs, be less than the bonus
         possibility provided to the Executive for the prior year. For purposes
         of applying the preceding sentence, (I) the bonus possibility for any
         year shall be expressed as a percentage of the Executive's Salary for
         the year; and (II) the determination of the bonus amount paid or
         payable to the Executive for any year shall be annualized if the
         Executive is not employed by the Company or an Affiliate for the entire
         year. The performance goals for the bonus shall be established by the
         Executive's Supervisor after consultation with the Executive.

(c)      Options. During the Agreement Term, the Executive shall be granted
         stock options at such times as options are granted to the Company's
         other senior executives. Stock option grants shall be subject to such
         terms, and shall cover a number of shares, as are comparable to the
         terms of, and number of shares covered by options granted to the
         Company's other senior executives from time to time, with the number of
         such shares to be adjusted in a manner that reflects the Executive's
         position compared with others receiving option grants.

(d)      Disability Insurance. The Executive shall receive from the Company
         disability income replacement coverage which will provide for
         replacement of income at a commercially reasonable rate during any
         period in which the Executive is Disabled if the disability arose
         during the Agreement Term and prior to the Executive's Date of
         Termination. During any period while the Executive is Disabled and is
         otherwise entitled to receive Salary and bonus payments under this
         Agreement, any such Salary and bonus payments to the Executive shall be
         reduced by the amount of any benefits paid for the same period of time
         under the Company-provided disability income replacement coverage.
         During any period while the Executive is Disabled and is otherwise
         entitled to receive Salary and bonus payments under this Agreement
         (including payment in lieu of Salary or bonus pursuant to paragraph
         6(c)), any such Salary and bonus payments (or such payments in lieu of
         Salary and bonus) to the Executive shall be reduced by the amount of
         any benefits paid for the same period of time under the
         Company-provided disability income replacement coverage.

(e)      Expenses. The Executive is authorized to incur reasonable expenses for
         entertainment, traveling, meals, lodging and similar items in promoting
         the Company's business. The Company will reimburse the Executive for
         all reasonable expenses so incurred, provided

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         that such expenses are incurred and accounted for in accordance with
         the reasonable policies and procedures established by the Company.

(f)      Change of Control Date. For the period beginning on a Change of Control
         Date and ending on the last day of the 24th calendar month following
         the calendar month in which a Change of Control Date occurs, the
         Company shall make available to the Executive health benefit coverage
         (for the Executive and the Executive's family), life insurance
         coverage, and disability income replacement insurance coverage on terms
         that are not materially less favorable to the Executive than as in
         effect immediately prior to the Change of Control Date with respect to
         each of such health, life and disability coverage. For the period
         beginning on a Change of Control Date and continuing at all times
         thereafter, the age and years of service requirements for eligibility
         for coverage under the Retiree Medical Benefit Coverage (as applied to
         the Executive and the Executive's family) shall not be modified to
         adversely affect the Executive's right to coverage.

(g)      Indemnification and Insurance. The Company will, to the maximum extent
         permitted by law, defend, indemnify and hold harmless the Executive and
         the Executive's heirs, estate, executors and administrators against any
         costs, losses, claims, suits, proceedings, damages or liabilities to
         which the Executive may become subject which arise out of, are based
         upon or relate to the Executive's employment by the Company (and any
         predecessor company to the Company), or the Executive's service as an
         officer or member of the Board of Directors of the Company (or any
         predecessor company to the Company) or any Affiliate, including without
         limitation reimbursement for any legal or other expenses reasonably
         incurred by the Executive in connection with investigation and
         defending against any such costs, losses, claims, suits, proceedings,
         damages or liabilities. The Company shall maintain directors and
         officers liability insurance in commercially reasonable amounts (as
         reasonably determined by the Board), and the Executive shall be covered
         under such insurance to the same extent as other senior management
         employees of the Company; provided, however, that the Company shall not
         be required to maintain such insurance coverage unless the Board
         determines that it is obtainable at reasonable cost; and further
         provided that the Executive shall be given written notice of the
         Board's determination to not maintain such coverage promptly after such
         determination is made.

(h)      Other Fringe Benefits. Except as otherwise specifically provided to the
         contrary in this Agreement, the Executive shall be provided with the
         welfare benefits and other fringe benefits to the same extent and on
         the same terms as those benefits are provided by the Company from time
         to time to the Company's other senior management employees and to
         receive the benefits and perquisites as may be available to employees
         of like rank and position. However, the Company shall not be required
         to provide a benefit under this paragraph (h) if such benefit would
         duplicate (or otherwise be of the same type as) a benefit specifically
         required to be provided under another provision of this Agreement. The
         Executive shall complete all forms and physical examinations, and
         otherwise take all other similar actions to secure coverage and
         benefits described in this paragraph 3, to the extent determined to be
         necessary or appropriate by the Company.

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(i)      Tax Withholding. All payments and distributions under this Agreement
         are subject to withholding of all applicable taxes.

         4. Certain Additional Payments by the Company.

(a)      Anything in this Agreement to the contrary notwithstanding, in the
         event it shall be determined that any payment, benefit, or distribution
         from the Company, any affiliate of the Company, or trusts established
         by the Company or by any affiliate of the Company for the benefit of
         its employees, to the Executive or for the Executive's benefit, whether
         paid or payable or distributed or distributable pursuant to the terms
         of this Agreement or otherwise, including, by way of example and not by
         way of limitation, acceleration of the date of vesting, payment, rate
         of payment, benefit or right to future payment or benefit under any
         plan, program or arrangement of the Company or by any other company,
         person or entity (a "Payment"), would be subject to the excise tax
         imposed by section 4999 of the Code or any interest or penalties 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 the Executive shall be entitled to receive an
         additional payment (a "Gross-Up Payment") in an amount such that after
         payment by the Executive of all taxes (including any interest or
         penalties imposed with respect to such taxes), including any Excise Tax
         imposed upon the Gross-Up Payment, the Executive retains an amount of
         the Gross-Up Payment equal to the sum of: (i) the Excise Tax imposed
         upon the Payments; plus (ii) an amount equal to the product of any
         deductions disallowed for federal, state, or local income tax purposes
         because of the inclusion of the Gross-Up Payment in the Executive's
         adjusted gross income multiplied by the highest applicable marginal
         rate of federal, state, or local income taxation, respectively, for the
         calendar year in which the Gross-Up Payment is to be made.

(b)      Subject to the provisions of paragraph 4(c), all determinations
         required to be made under this paragraph 4, including whether a
         Gross-Up Payment is required and the amount of such Gross-Up Payment,
         shall be made by a nationally recognized certified public accounting
         firm as may be selected by the Company (the "Accounting Firm") which
         shall provide detailed supporting calculations both to the Company and
         the Executive within 15 business days of the receipt of notice from the
         Executive that there has been a Payment which would be subject to the
         Excise Tax, or such earlier time as is requested by the Company. The
         initial Gross-Up Payment, if any, as determined pursuant to this
         paragraph 4(b), shall be paid to the Executive within five days of the
         receipt of the Accounting Firm's determination. If the Accounting Firm
         determines that no Excise Tax is payable by the Executive, it shall
         furnish the Executive with an opinion that the Executive has
         substantial authority not to report any Excise Tax on the Executive's
         federal income tax return. Any determination by the Accounting Firm
         shall be binding upon the Company and the 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 Payment 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 paragraph 4(c) and the
         Executive thereafter is required to make a payment of

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<PAGE>

         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 the Executive.

(c)      The 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
         the Executive knows 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. The Executive shall not pay such claim prior to the expiration
         of the 30-day period following the date on which the Executive 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 the Executive in writing prior to the expiration of
         such period that it desires to contest such claim, the 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
         the 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 payment of costs and
         expenses. Without limitation on the foregoing provisions of this
         paragraph 4(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 the Executive to pay the tax claimed
         and sue for a refund or contest the claim in any permissible manner.
         The 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 the Executive to pay
         such claim and sue for a refund, the Company shall advance the amount
         of such payment to the Executive, on an interest-free basis and shall
         indemnify and hold the 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

                                    13 of 28
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         advance; and further provided that any extension of the statute of
         limitations relating to payment of taxes for the taxable year of the
         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 the
         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 the Executive of an amount advanced by the
         Company pursuant to paragraph 4(c), the Executive becomes entitled to
         receive any refund with respect to such claim, the Executive shall
         (subject to the Company's complying with the requirements of paragraph
         4(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 the Executive of an amount advanced
         by the Company pursuant to paragraph 4(c), a determination is made that
         the Executive shall not be entitled to any refund with respect to such
         claim and the Company does not notify the Executive in writing of its
         intent to contest such denial of refund prior to the expiration of
         thirty 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.

         5. Termination. The Executive's employment with the Company during the
Agreement Term may be terminated by the Company or the Executive without any
breach of this Agreement only under the circumstances described in paragraphs
5(a) through 5(f):

(a)      Death. The Executive's employment hereunder will terminate upon the
         Executive's death.

(b)      Permanently Disabled. The Company may terminate the Executive's
         employment during any period in which the Executive is Permanently
         Disabled.

(c)      Cause. The Company may terminate the Executive's employment at any time
         for Cause.

(d)      Constructive Discharge. If (I) the Executive provides written notice to
         the Company of the occurrence of Good Reason within a reasonable time
         after the Executive has knowledge of the circumstances constituting
         Good Reason, which notice shall specifically identifies the
         circumstances which the Executive believes constitute Good Reason; (II)
         the Company fails to notify the Executive of the Company's intended
         method of correction within a reasonable period of time after the
         Company receives the notice, or the Company fails to correct the
         circumstances within a reasonable period of time after such notice; and
         (III) the Executive resigns within a reasonable time after receiving
         the Company's response, if such notice does not indicate an intention
         to correct such circumstances, or within a reasonable time after the
         Company fails to correct such circumstances; then the Executive shall
         be considered to have been subject to a Constructive Discharge by the
         Company. Notwithstanding the foregoing provisions of this paragraph
         (d), the Executive shall not be deemed to have been subject to a

                                    14 of 28
<PAGE>

         "Constructive Discharge" unless the Executive remains in the employ of
         the Company for the period requested by the Company at a rate of pay
         not less than his or her rate of pay immediately prior to the event
         giving rise to the Executive's notice (not to exceed 90 days after the
         Executive provides written notice in accordance with clause (I) above).

(e)      Termination by Executive. The Executive may terminate his or her
         employment hereunder at any time for any reason by giving the Company
         prior written Notice of Termination, which Notice of Termination shall
         be effective not less than 60 days after it is given to the Company,
         provided that nothing in this Agreement shall require the Executive to
         specify a reason for any such termination. However, to the extent that
         the procedures specified in paragraph 5(d) are required, the procedures
         of this paragraph 5(e) may not be used in lieu of the procedures
         required under paragraph 5(d).

(f)      Termination by Company. The Company may terminate the Executive's
         employment hereunder at any time for any reason, by giving the
         Executive prior written Notice of Termination, which Notice of
         Termination shall be effective immediately, or such later time as is
         specified in such notice. The Company shall not be required to specify
         a reason for the termination under this paragraph (f), provided that
         termination of the Executive's employment by the Company shall be
         deemed to have occurred under this paragraph (f) only if it is not for
         reasons described in paragraph 5(a), 5(b), 5(c), 5(d), or 5(e).

(g)      Notice of Termination. Any termination of the Executive's employment by
         the Company or the Executive (other than a termination pursuant to
         paragraph 5(a)) must be communicated by a written Notice of Termination
         to the other party hereto.

(h)      Effect of Termination. If, on the Date of Termination, the Executive is
         a member of the Board of Directors of the Company or any of the
         Affiliates, or holds any other position with the Company and the
         Affiliates, the Executive shall resign from all such positions as of
         the Date of Termination.

         6. Rights Upon Termination. The Executive's right to payment and
benefits under this Agreement for periods after the Date of Termination shall be
determined in accordance with the following provisions of this paragraph 6:

(a)      General. If the Executive's Date of Termination occurs during the
         Agreement Term for any reason, the Company shall pay to the Executive:

         (i) The Executive's Salary for the period ending on the Date of
         Termination.

         (ii) Payment for unused vacation days, as determined in accordance with
         Company policy as in effect from time to time.

         (iii) If the Date of Termination occurs after the end of the period
         during which performance is measured for purposes of determining
         eligibility for a performance bonus (as described in paragraph 3(b)),
         the Executive shall be paid such bonus amount at the regularly
         scheduled time.

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<PAGE>

         (iv) The Executive and any of the Executive's dependents shall be
         eligible for COBRA continuation coverage (as described in section 4980B
         of the Code) to the extent required by applicable law.

         (v) Any other payments or benefits to be provided to the Executive by
         the Company pursuant to any employee benefit plans or arrangements
         established or adopted by the Company, to the extent such amounts are
         due from the Company in accordance with the terms of such plans or
         arrangements. The Executive's right to payments under this paragraph
         (v) shall include, without limitation, any rights to indemnification
         from the Company, or from a third-party insurer for directors and
         officers liability coverage) with respect to any costs, losses, claims,
         suits, proceedings, damages or liabilities to which the Executive may
         become subject (regardless of whether they arise during the Executive's
         employment or after his or her Date of Termination for any reason)
         which arise out of, are based upon or relate to the Executive's
         employment by the Company and any predecessors, or the Executive's
         service as an officer or member of the Board of Directors of the
         Company or any predecessor or any Affiliate.

         Except as may otherwise be expressly provided to the contrary in this
         Agreement, nothing in this Agreement shall be construed as requiring
         the Executive to be treated as employed by the Company for purposes of
         any employee benefit plan or arrangement following the Executive's Date
         of Termination.

(b)      Termination for Cause. If the Executive's Date of Termination occurs
         during the Agreement Term under circumstances described in paragraph
         5(c) (relating to the Executive's termination for Cause), then, except
         as otherwise expressly provided in this Agreement or otherwise agreed
         in writing between the Executive and the Company, the Company shall
         have no obligation to make payments under the Agreement for periods
         after the Executive's Date of Termination; and the right to any
         benefits to or for the benefit of the Executive under the Supplemental
         Plan shall be forfeited, and no benefits shall be payable to or on
         behalf of the Executive under the Supplemental Plan.

(c)      Death or Disability. If the Executive's Date of Termination occurs
         during the Agreement Term under circumstances described in paragraph
         5(a) (relating to Executive's death), or paragraph 5(b) (relating to
         Executive's being Permanently Disabled), then, in addition to the
         amounts payable in accordance with paragraph 6(a), the Executive shall
         receive payment of the bonus for the performance period in which the
         Date of Termination occurs, based on actual performance for the entire
         period, and payable at the same time as it is payable for other
         participants in the bonus plan; provided, however, that it shall be
         subject to a pro-rata reduction for the portion of the performance
         period following the Date of Termination.

(d)      Termination without Cause and Constructive Discharge. If the
         Executive's Date of Termination occurs during the Agreement Term under
         circumstances described in paragraph 5(d) (relating to Constructive
         Discharge) or paragraph 5(f) (relating to termination by the Company
         without Cause), then, in addition to the amounts payable in accordance
         with paragraph 6(a):

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<PAGE>

         (i)      The Company shall pay to the Executive in a lump sum, in cash,
                  within 30 days after the Date of Termination, an amount equal
                  to three (3) times the Executive's Aggregate Annual
                  Compensation.

         (ii)     For the period beginning on the Date of Termination, and
                  ending on the 36-month anniversary of the Date of Termination,
                  the Company shall continue the Basic Benefits to the Executive
                  and/or the Executive's family which are concurrently being
                  provided to senior executives then employed by the Company
                  during that period, subject to the Executive making the
                  contributions that are generally required of executives of the
                  Company for such coverage from time to time. At the end of
                  such 36-month period, the Executive shall be eligible to
                  purchase COBRA medical continuation coverage (as described in
                  section 4980B of the Code (if any), with the period of medical
                  benefit coverage provided in accordance with the first
                  sentence of this paragraph (ii) being counted toward the
                  Company's obligation to provide COBRA coverage. However,
                  during any period after the Executive's Date of Termination
                  during which the Executive is eligible to obtain medical
                  benefit coverage (with respect to the Executive or the
                  Executive's family) from the Executive's employer, or other
                  person to whom the Executive provides service, the Executive
                  will file such an application, and take such other steps as
                  may be necessary to obtain such coverage (including the
                  payment of premiums), and to the extent permitted by
                  applicable law, coverage obtained in accordance with this
                  sentence shall be primary. For the period beginning on the
                  Date of Termination and ending on the 36-month anniversary of
                  the Date of Termination, to the extent that the value of the
                  Basic Benefits provided to the Executive under this paragraph
                  (ii) are determined to be includible in the Executive's income
                  for income tax purposes, and such benefits would not have been
                  includible in the Executive's income for income tax purposes
                  if the Executive continued in the employ of the Company, the
                  Company will make a Tax Gross-Up Payment (as described below)
                  to the Executive with respect to such coverage. For purposes
                  of this paragraph (ii), the term "Tax Gross-Up Payment" with
                  respect to any benefit shall mean an amount which shall be
                  equal to the aggregate amount of additional Federal, state and
                  local income taxes payable by the Executive from time to time
                  as a result of the receipt of such benefit and the receipt of
                  such additional payment.

         (iii)    The Executive's benefits under the Supplemental Plan shall be
                  fully vested.

         (iv)     The Company shall pay for a reasonable amount of outplacement
                  services to be performed by an outplacement service provider
                  mutually agreeable by the Executive and the Company. The
                  amount of such outplacement services will be commensurate with
                  the Executive's title and position with the Company and other
                  executives similarly situated in other companies within the
                  Company's peer industry group.

         (v)      The Executive shall receive payment of the bonus for the
                  performance period in which the Date of Termination occurs,
                  based on actual performance for the entire

                                    17 of 28
<PAGE>

                  period, and payable at the same time as it is payable for
                  other participants in the bonus plan; provided, however, that
                  it shall be subject to a pro-rata reduction for the portion of
                  the performance period following the Date of Termination.

         In no event, however, shall the Executive be entitled to receive any
         amounts, rights, or benefits under this paragraph (d) unless the
         Executive executes a release of claims against the Company in a form
         prepared by the Company.

(e)      Change of Control Benefits. If, during the period beginning on a Change
         of Control Date and ending on the last day of the 24th calendar month
         following the calendar month in which a Change of Control Date occurs,
         the Executive's Date of Termination occurs under circumstances
         described in paragraph 5(d) (relating to Constructive Discharge) or
         paragraph 5(f) (relating to termination by the Company without Cause),
         then, in addition to the benefits provided payable in accordance with
         paragraph 6(a) and paragraph 6(d):

         (i)      The Executive's entitlement to Retiree Medical Benefit
                  Coverage shall be determined as though, at the Date of
                  Termination, the Executive had earned 36 months of service in
                  addition to the Executive's actual service at the Date of
                  Termination, and as though the Executive was three years older
                  than the Executive's actual age at the Date of Termination
                  (provided that the additional deemed age and service shall not
                  be construed to reduce the Executive's right to Retiree
                  Medical Benefit Coverage which may otherwise be reduced by
                  reason of additional age or service).

         (ii)     The Executive's entitlement to benefits under the Supplemental
                  Plan shall be determined as though, at the time of
                  termination, (A) the Executive had earned 36 months of service
                  in addition to the Executive's actual service at the Date of
                  Termination; (B) the Executive's compensation for such 36
                  months of additional service was equal to the greater of the
                  Executive's compensation as of the Date of Termination or the
                  Executive's Compensation immediately prior to the Change of
                  Control Date; and (C) the Executive was three years older than
                  the Executive's actual age at the Date of Termination.
                  However, the additional deemed service, compensation and age
                  shall not be construed to reduce the Executive's right to
                  benefits under the Supplemental Plan which may otherwise be
                  reduced by reason of additional age or service, and further
                  provided that the deemed additional service credited pursuant
                  to this paragraph (ii) under the Supplemental Plan shall not
                  occur to the extent that such service would result in service
                  in excess of the maximum years of service permitted to be
                  taken into account under that plan.

         This paragraph (e) shall not limit the ability of the Company or an
         Affiliate (whichever is applicable) to modify the terms of the
         Supplemental Plan for all participants who are similarly situated with
         the Executive; subject to the restrictions imposed on the Company or
         Affiliate (by that plan, the provisions of paragraph 3(f) of this
         Agreement, or otherwise) to modify the terms of the plan. Regardless of
         whether the Date of Termination has occurred prior to, on, or after the
         Change of Control Date, for the period continuing at all times after
         the Change of Control Date (if any), the Retiree Medical

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         Benefit Coverage (as applied to the Executive and the Executive's
         family) shall not be modified to adversely affect the Executive's right
         to coverage or benefits as compared to the coverage that was provided
         immediately prior to the Change of Control Date.

         7. Duties on Termination. Subject to the terms and conditions of this
Agreement, during the period beginning on the date of delivery of a Notice of
Termination, and ending on the Date of Termination, the Executive shall continue
to perform the duties as set forth in this Agreement, and shall also perform
such services for the Company as are necessary and appropriate for a smooth
transition to the Executive's successor, if any. Notwithstanding the foregoing
provisions of this paragraph 7, the Company may suspend the Executive from
performing the duties under this Agreement following the delivery of a Notice of
Termination providing for the Executive's resignation, or delivery by the
Company of a Notice of Termination providing for the Executive's termination of
employment for any reason; provided, however, that during the period of
suspension (which shall end on the Date of Termination), the Executive shall
continue to be treated as employed by the Company for other purposes, and the
Executive's rights to compensation or benefits shall not be reduced by reason of
the suspension. Following the Date of Termination, the Executive agrees to
return to the Company any keys, credit cards, passes, confidential documents or
material, or other property belonging to the Company, and to return all
writings, files, records, correspondence, notebooks, notes and other documents
and things (including any copies thereof) containing any Confidential
Information.

         8. Mitigation, Alienation, and Set-Off. The Executive shall not be
required to mitigate the amount of any payment provided for in this Agreement by
seeking other employment or otherwise. The Company shall not be entitled to set
off against the amounts payable to the Executive under this Agreement any
amounts owed to the Company by the Executive, any amounts earned by the
Executive in other employment after termination of employment with the Company,
or any amounts which might have been earned by the Executive in other employment
had such other employment been sought. This Agreement is personal to the
Executive and may not be assigned by the Executive without the written consent
of the Company. The interests of the Executive under this Agreement are not
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, attachment, or garnishment by creditors of the Executive or
the Executive's beneficiary. However, to the extent that rights or benefits
under this Agreement otherwise survive the Executive's death, the Executive's
heirs and estate shall succeed to such rights and benefits pursuant to the
Executive's will or the laws of descent and distribution; provided that the
Executive shall have the right at any time and from time to time, by notice
delivered to the Company, to designate or to change the beneficiary or
beneficiaries with respect to such benefits.

         9. Confidential Information. The Executive agrees that, during the
Agreement Term, and at all times thereafter:

(a)      Except as may be required by the lawful order of a court or agency of
         competent jurisdiction, except as necessary to carry out the duties to
         the Company and the Affiliates, or except to the extent that the
         Executive has express authorization from the Company, the Executive
         agrees to keep secret and confidential indefinitely, all Confidential
         Information, and not to disclose the same, either directly or
         indirectly, to any other

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<PAGE>

         person, firm, or business entity, or to use it in any way. The
         Executive shall, during the continuance of the Executive's employment,
         use the Executive's best efforts to prevent the unauthorized
         publication or misuse of any Confidential Information.

(b)      To the extent that any court or agency seeks to have the Executive
         disclose Confidential Information, the Executive shall promptly inform
         the Company, and shall take reasonable steps to prevent disclosure of
         Confidential Information until the Company has been informed of such
         requested disclosure, and the Company has an opportunity to respond to
         such court or agency. To the extent that the Executive obtains
         information on behalf of the Company or any of the Affiliates that may
         be subject to attorney-client privilege as to the Company's attorneys,
         the Executive shall take reasonable steps to maintain the
         confidentiality of such information and to preserve such privilege.

(c)      Nothing in the foregoing provisions of this paragraph 9 shall be
         construed so as to prevent the Executive from using, in connection with
         the Executive's employment for himself or herself or an employer other
         than the Company or any of the Affiliates, knowledge which was acquired
         during the course of the Executive's employment with the Company and
         the Affiliates, and which is generally known to persons of the
         Executive's experience in other companies in the same industry.

(d)      This paragraph 9 shall not be construed to unreasonably restrict the
         Executive's ability to disclose confidential information in an
         arbitration proceeding or a court proceeding in connection with the
         assertion of, or defense against any claim of breach of this Agreement.
         If there is a dispute between the Company and the Executive as to
         whether information may be disclosed in accordance with this paragraph
         (d), the matter shall be submitted to the arbitrators or the court
         (whichever is applicable) for decision.

         10. Non-Disparagement. The Executive shall not, while employed by the
Company, and after the Date of Termination, publicly (e.g., via an interview or
speech or presentation available to the public) criticize, defame, or disparage
the Company or its Affiliates or their officers or directors, orally or in
writing, unless compelled by law to do so. While the Executive is employed by
the Company, and after the Date of Termination, the Company agrees, on behalf of
itself and its Affiliates, that neither the officers nor the directors of the
Company or the Affiliates shall publicly (e.g., via an interview or speech or
presentation available to the public) criticize, defame, or disparage the
Executive, orally or in writing, unless compelled by law to do so.

         11. Other Duties. Nothing in paragraph 9 or 10 shall be construed as
limiting the Executive's duty of loyalty to the Company, or any other duty the
Executive may otherwise have to the Company, while employed by the Company.

         12. Assistance with Claims. The Executive agrees that, for the period
beginning on the Effective Date, and continuing for a reasonable period after
the Executive's Date of Termination, the Executive will assist the Company and
the Affiliates in defense of any claims that may be made against the Company and
the Affiliates, and will assist the Company and the Affiliates in the
prosecution of any claims that may be made by the Company or the Affiliates, to
the extent that such claims may relate to services performed by the Executive
for the Company and the

                                    20 of 28
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Affiliates. The Executive agrees to promptly inform the Company if the Executive
becomes aware of any lawsuits involving such claims that may be filed against
the Company or any Affiliate. The Company agrees to provide legal counsel to the
Executive in connection with such assistance (to the extent legally permitted),
and to reimburse the Executive for all of the Executive's reasonable
out-of-pocket expenses associated with such assistance, including travel
expenses. For periods after the Executive's employment with the Company
terminates, the Company agrees to provide reasonable compensation to the
Executive for such assistance. The Executive also agrees to promptly inform the
Company if asked to assist in any investigation of the Company or the Affiliates
(or their actions) that may relate to services performed by the Executive for
the Company or the Affiliates, regardless of whether a lawsuit has then been
filed against the Company or the Affiliates with respect to such investigation.

         13. Equitable Remedies. The Executive acknowledges that the Company
and/or the Affiliates would be irreparably injured by a violation of paragraph 9
or 10, and agrees that the Company and any affected Affiliate, in addition to
any other remedies available to it for such breach or threatened breach, shall
be entitled to a preliminary injunction, temporary restraining order, or other
equivalent relief, restraining the Executive from any actual or threatened
breach of either paragraph 9 or 10. The Company acknowledges that the Executive
would be irreparably injured by a violation of paragraph 10, and agrees that the
Executive, in addition to any other remedies available to the Executive for such
breach or threatened breach, shall be entitled to a preliminary injunction,
temporary restraining order, or other equivalent relief, restraining the Company
from any actual or threatened breach of paragraph 10. If a bond is required to
be posted in order for the Company, an Affiliate, or the Executive to secure an
injunction or other equitable remedy, the parties agree that said bond need not
be more than a nominal sum.

         14. Amendment. This Agreement may be amended or cancelled only by
mutual agreement of the parties in writing without the consent of any other
person. So long as the Executive lives, no person, other than the parties
hereto, shall have any rights under or interest in this Agreement or the subject
matter hereof.

         15. Applicable Law. This Agreement shall be governed by and construed
in accordance with the laws of the State of Oklahoma, without reference to
principles of conflict of laws except as superseded by applicable federal law.
All disputes shall be arbitrated or litigated (whichever is applicable) in
Oklahoma City, Oklahoma.

         16. Severability. The invalidity or unenforceability of any provision
of this Agreement will not affect the validity or enforceability of any other
provision of this Agreement, and this Agreement will be construed as if such
invalid or unenforceable provision were omitted (but only to the extent that
such provision cannot be appropriately reformed or modified).

         17. Waiver of Breach. No waiver by any party hereto of a breach of any
provision of this Agreement by any other party, or of compliance with any
condition or provision of this Agreement to be performed by such other party,
will operate or be construed as a waiver of any subsequent breach by such other
party of any similar or dissimilar provisions and conditions at the same or any
prior or subsequent time. The failure of any party hereto to take any action by

                                    21 of 28
<PAGE>

reason of such breach will not deprive such party of the right to take action at
any time while such breach continues.

         18. Successors, Assumption of Contract. This Agreement shall be binding
upon and inure to the benefit of the Company and any successor of the Company,
subject to the following:

(a)      The Company may assign its rights and obligations under this Agreement
         to any Affiliate. The Company will require that any assignee (pursuant
         to the preceding sentence) and will require that any successor (whether
         direct or indirect, by purchase, merger, consolidation or otherwise) to
         all or substantially all of the business or assets of the Company to
         expressly assume 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 assignment or succession had taken place.

(b)      Notwithstanding the foregoing provisions of this paragraph 18, if an
         assignee or the successor is required to assume the obligations of this
         Agreement under paragraph 18(a), and fails to execute and deliver to
         the Executive a written acknowledgment of the assumption at that time
         or, if later, promptly following demand by the Executive for execution
         and deliver of such an acknowledgment, then the successor shall not be
         substituted as the Company, the Executive shall be entitled to payments
         and benefits as provided under paragraph 6(d), and if the Executive is
         then employed by the Company (or successor), the Executive's employment
         shall be deemed to have been terminated by the Company under
         circumstances described in paragraph 5(f), and the Executive shall not
         be required to perform services under this Agreement after such deemed
         termination.

(c)      The Company's rights and obligations under this Agreement may not be
         assigned to an entity that is not an Affiliate without the Executive's
         consent. If, during the Agreement Term, and prior to the date that
         would otherwise be the Executive's Date of Termination in the absence
         of this sentence, the Company ceases to be either Devon Energy
         Corporation (or successor thereto) or an Affiliate, then, as of the
         Executive's Date of Termination shall be deemed to have occurred as of
         the date of such cessation by the Company for reasons other than Cause.

         19. Notices. Notices and all other communications provided for in this
Agreement shall be in writing and shall be delivered personally or sent by
registered or certified mail, return receipt requested, postage prepaid
(provided that international mail shall be sent via overnight or two-day
delivery), or sent by facsimile or prepaid overnight courier to the parties at
the addresses set forth below (or such other addresses as shall be specified by
the parties by like notice). Such notices, demands, claims and other
communications shall be deemed given:

(a)      in the case of delivery by overnight service with guaranteed next day
         delivery, the next day or the day designated for delivery;

(b)      in the case of certified or registered U.S. mail, five days after
         deposit in the U.S. mail; or

                                    22 of 28
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(c)      in the case of facsimile, the date upon which the transmitting party
         received confirmation of receipt by facsimile, telephone or otherwise;

provided, however, that in no event shall any such communications be deemed to
be given later than the date they are actually received. Communications that are
to be delivered by the U.S. mail or by overnight service or two-day delivery
service are to be delivered to the addresses set forth below:

         to the Company:

         Devon Energy Corporation
         20 North Broadway, Suite 1500
         Oklahoma City, Oklahoma 73102-8260

or to the Executive:

         Devon Energy Corporation
         20 North Broadway, Suite 1500
         Oklahoma City, Oklahoma 73102-8260

All notices to the Company shall be directed to the attention of Senior Vice
President, Administration of the Company, with a copy to the Vice President,
Human Resources of the Company. Each party, by written notice furnished to the
other party, may modify the applicable delivery address, except that notice of
change of address shall be effective only upon receipt.

         20. Arbitration. In the event of a dispute, claim, or controversy
regarding the Executive's rights and obligations in connection with the
Executive's employment or otherwise under this Agreement, the following shall
apply:

(a)      The parties agree that the Executive's employment and this Agreement
         relate to interstate commerce, and that any disputes, claims or
         controversies between the Executive and the Company which may arise out
         of or relate to the Executive's employment relationship or this
         Agreement shall be settled by arbitration. This agreement to arbitrate
         shall survive the Date of Termination. Any arbitration shall be in
         accordance with the Rules of the American Arbitration Association and
         shall be undertaken pursuant to the Federal Arbitration Act.
         Arbitration will be held in Oklahoma City, Oklahoma unless the parties
         mutually agree on another location. The decision of the arbitrator(s)
         will be enforceable in any court of competent jurisdiction.

(b)      The parties agree that punitive, liquidated or indirect damages shall
         not be awarded by the arbitrator(s) unless such damages would be
         awarded by a court of competent jurisdiction.

(c)      This paragraph 20 shall not be construed to limit the right of the
         Company, an Affiliate, or the Executive to obtain relief under
         paragraph 13 with respect to any matter or controversy subject to
         paragraph 13, or otherwise to prevent any on-going breach by the
         Executive or the Company and, pending a final determination by the
         arbitrator with

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         respect to any such matter or controversy, the Company or the Executive
         shall be entitled to obtain any such relief by direct application to
         state, federal, or other applicable court, without being required to
         first arbitrate such matter or controversy.

         21. Attorney Fees. In the event of a dispute, claim, or controversy
regarding the Executive's rights and obligations in connection with the
Executive's employment or otherwise under this Agreement, the following shall
apply:

(a)      The Company otherwise responsible for payment of the benefits shall
         reimburse the Executive for all legal fees and expenses reasonably
         incurred by the Executive in connection with such contest or dispute
         (provided that such legal fees are calculated on an hourly, and not on
         a contingency fee, basis), costs and expenses incurred by the Executive
         in connection with such enforcement or defense.

(b)      The Executive shall be entitled to select his or her legal counsel;
         provided, however, that such right of selection shall not affect the
         requirement that any costs and expenses reimbursable under this
         paragraph 21 be reasonable.

(c)      Except as otherwise provided in paragraph (d) below, reimbursement by
         the Company shall be made as soon as practicable following the
         resolution of the contest or dispute to the extent the Company receives
         appropriate documentation evidencing the incurrence of such attorneys'
         fees, costs, and expenses. However, subject to paragraph (d) below,
         such reimbursement shall be due under this paragraph 21 only if the
         Executive is successful in respect of one or more of the Executive's
         material claims or defenses brought, raised or pursued in connection
         with such contest or dispute.

(d)      In the event that (i) within the period beginning on the Change of
         Control Date and ending on the last day of the 24th calendar month
         following the calendar month in which a Change of Control Date, a claim
         (a "Claim") for arbitration or a lawsuits filed by the Company or the
         Executive in connection with a dispute, claim, or controversy regarding
         the Executive's rights and obligations in connection with the
         Executive's employment or otherwise under this Agreement or (ii) a
         Claim has been filed prior to a Change of Control Date but has not been
         resolved as of the Change of Control Date, then payments required under
         this paragraph 21 with respect to such Claim shall be made by the
         Company to the Executive (or directly to the Executive's attorney)
         promptly following submission to the Company of appropriate
         documentation evidencing the incurrence of such attorneys' fees, costs,
         and expenses. The Executive shall repay the Company the amount of any
         such reimbursement received in connection with such dispute in
         accordance with this paragraph 21 (without interest) as soon as
         practicable following the resolution of such contest or dispute;
         provided, however, that this sentence shall not apply (and no repayment
         shall be due from the Executive) if the Executive is successful in
         respect of any one or more of the Executive's material claims or
         defenses brought, raised or pursued in connection with such contest or
         dispute.

(e)      The guarantee of payment in accordance with paragraph 22 of amounts due
         under this Agreement shall apply to this paragraph 21.

                                    24 of 28
<PAGE>

         22. Secondary Liability for Payment. To the extent that the Company
and/or an Affiliate are not otherwise obligated to provide benefits to the
Executive by the provisions of the Agreement, the Company shall take such
actions as are necessary, and cause each Affiliate to take such actions as are
necessary, to cause each such entity (the "Guarantors") to jointly and severally
guarantee the payment of benefits otherwise due to the Executive under this
Agreement. However, in no event shall the guarantee provided by the preceding
sentence give rise to an obligation unless the Company does not pay such benefit
within 30 days of the due date for such payment, and no entity organized under
the laws of any jurisdiction outside the United States shall have an obligation
to enter into such guarantee. Each of the Guarantors shall be subrogated to the
Executive's rights under the Agreement to the extent of any payments by each
such Guarantor to or on account of the Executive under this paragraph 22. For
the avoidance of doubt, it is recited here that after a transaction described in
paragraph 18(c), this paragraph 22 shall continue to be applicable to the
Executive.

         23. Entire Agreement. Except as otherwise provided herein, this
Agreement constitutes the entire agreement among the parties with respect to the
subject matter hereof and supersedes any and all prior or contemporaneous oral
and prior written agreements and understandings, subject to the following:

(a)      This Agreement shall not adversely affect the Executive's rights under
         the terms of any option on stock of the Company or any other award
         based on the stock of the Company.

(b)      The Executive irrevocably consents to the modification of the
         definition of "Change of Control Date" in all Employee Benefit
         Arrangements (as defined below), by substituting for such definition,
         in each such employee benefit arrangement, the definition of "Change of
         Control Date" set forth in this Agreement, with such substitution to be
         effective on the Effective Date. For purposes of the preceding
         sentence, the term "Employee Benefit Arrangement" shall mean each
         agreement with the Executive to which the Company or any Affiliate is a
         party, and each plan or arrangement maintained by the Company or any
         Affiliate, and including any awards outstanding under any such
         agreement, plan, or arrangement, to the extent that such award,
         agreement, plan, or arrangement contains a definition of "Change of
         Control Date." However, this paragraph (b) shall not apply with respect
         to stock options granted prior to the Effective Date (with the grant
         date determined without regard to the date of grant of any subsequent
         replacement awards).

(c)      For purposes of the Restoration Plan, the term "Cause," as applied to
         the Executive, shall have the meaning set forth in this Agreement,
         rather than the meaning set forth in the Restoration Plan.

(d)      As a condition of entering into this Agreement, the Executive and the
         Company agree that they shall also enter into the Supplemental Plan
         Participation Agreement and the Restoration Plan Participation
         Agreement as set forth in Exhibit 1 and Exhibit 2 to this Agreement.

                                    25 of 28
<PAGE>

(e)      There are no oral promises, conditions, representations,
         understandings, interpretations or terms of any kind as conditions or
         inducements to the execution hereof or in effect among the parties.

(f)      Nothing in this Agreement shall be construed to limit any policy or
         agreement that is otherwise applicable relating to confidentiality,
         rights to inventions, copyrightable material, business and/or technical
         information, trade secrets, solicitation of employees, interference
         with relationships with other businesses, competition, and other
         similar policies or agreement for the protection of the business and
         operations of the Company or the Affiliates.

(g)      This Agreement shall supercede any employment agreement or severance
         agreement (including any employment offer letter) covering the
         Executive and signed prior to the Effective Date.

(h)      Except as may be otherwise specifically provided in an amendment of
         this paragraph 23 adopted in accordance with paragraph 14, the
         Executive's rights under this Agreement shall be in lieu of any
         benefits that may be otherwise payable to or on behalf of the Executive
         pursuant to the terms of any severance pay arrangement of the Company
         or any Affiliate or any other, similar arrangement of the Company or
         any Affiliate providing benefits upon involuntary termination of
         employment.

         24. Acknowledgment by Executive. The Executive represents and warrants
that (i) he or she is not, and will not become a party to any agreement,
contract, arrangement or understanding, whether of employment or otherwise, that
would in any way restrict to prohibit the Executive from undertaking or
performing the duties in accordance with this Agreement or that restricts the
Executive's ability to be employed by the Company in accordance with this
Agreement; (ii) the Executive's employment by the Company will not violate the
terms of any policy of any prior employer of the Executive regarding
competition; and (iii) the Executive's position with the Company, as described
in this Agreement, will not require the Executive to improperly use any trade
secrets or confidential information of any prior employer, or any other person
or entity for whom the Executive has performed services.

         IN WITNESS THEREOF, the Executive has hereunto set his or her hand, and
the Company has caused these presents to be executed in its name and on its
behalf, all as of the Effective Date.

                                            ------------------------------------
                                                         Executive

                                            Devon Energy Corporation

                                            ------------------------------------

                                            By:  J. Larry Nichols
                                            Its:  Chief Executive Officer

                                    26 of 28
<PAGE>

                                    Exhibit 1
                    Supplemental Plan Participation Agreement

     The Supplemental Plan Participation Agreement is immediately following.

                                    27 of 28
<PAGE>

                                    Exhibit 2
                    Restoration Plan Participation Agreement

     The Restoration Plan Participation Agreement is immediately following.

                                    28 of 28

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