Document:

exv10w2

Exhibit 10.2

HARVEST NATURAL RESOURCES

2010 LONG TERM INCENTIVE PLAN

Employee Restricted Stock Award Agreement

          This Restricted Stock Award Agreement (this “Agreement”) is made at Houston, Texas, USA,
effective as of «Grant_Date» (the “Grant Date”), by and between HARVEST NATURAL RESOURCES, INC.
(the “Company”) and «First_Name» «Last_Name» (the “Grantee”).

          It is hereby agreed as follows:

	1.	 	Grant of Restricted Stock; Consideration. The Company has granted (the “Grant”),
pursuant to Article VII of the Harvest Natural Resources 2010 Long Term Incentive Plan (the
“Plan”), to the Grantee on the Grant Date «Restricted_Stock_Grant» shares of the Company’s
Common Stock, par value $0.01 per share (the “Restricted Shares”), subject to the terms of
this Agreement and the Plan.
	 
	 	 	The Grantee shall not be required to pay any consideration for the Grant, except for his
agreement to serve as an employee of the Company or any Affiliate and other agreements set
forth herein.
	 
	2.	 	Incorporation of Plan by Reference. The Grant has been granted to the Grantee under
the Plan, a copy of which has been previously made available to the Grantee. All of the
terms, conditions, and other provisions of the Plan are hereby incorporated by reference into
this Agreement. Capitalized terms that are not otherwise defined in this Agreement shall have
the meanings given to such terms in the Plan. If there is any conflict between the provisions
of this Agreement and the provisions of the Plan, the provisions of the Plan shall govern.
	 
	3.	 	Restriction Period.

	 	(a)	 	The shares of the Stock that are granted hereby shall be subject to the
forfeiture restrictions set forth in this Agreement and the Plan (the “Forfeiture
Restrictions”). Subject to all of the terms and conditions of the Plan and this
Agreement, and except as provided below in this paragraph 3 in the event of a Change in
Control, death, Disability or layoff, the period during which the Forfeiture
Restrictions shall apply to the Restricted Shares shall commence on the Grant Date and
end on «Restricted_Until» (the “Restriction Period”). At the end of the Restriction
Period, all the Forfeiture Restrictions applicable to the Restricted Shares shall
lapse, provided that the Grantee’s employment with the Company and its Affiliates has
not terminated prior to the end of the Restriction Period, and, subject to paragraph 7
of this Agreement, a stock certificate or electronic book entry for the number of
shares of the Stock granted hereby shall be delivered to the Grantee, the Grantee’s
beneficiary or the Grantee’s estate, whichever is applicable at the time of delivery.
	 
	 	(b)	 	Notwithstanding any other provision of this Agreement to the contrary, if,
during the Restriction Period, a Change in Control occurs then all remaining Forfeiture
Restrictions shall lapse as to the Restricted Shares that are granted hereby upon

 

 

	 	 	 	the occurrence of the Change in Control provided that the Grantee continues to be
employed by the Company or an Affiliate immediately prior to the occurrence of such
Change in Control. For purposes of this Agreement, a “Change in Control” means the
occurrence of any of the following:

	 	(i)	 	the acquisition by any individual, by any corporation,
partnership, association, joint-stock company, limited liability company,
trust, unincorporated organization or other business entity (each, an “Entity”)
or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934) (a “Covered Person”) of beneficial ownership (within the
meaning of rule 13d-3 promulgated under the Securities Exchange Act of 1934) of
50 percent or more of the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of
directors (the “Voting Securities”); provided, however, that for purposes of
this subsection (i) of this paragraph 3(b) the following acquisitions shall not
constitute a Change in Control: (A) any acquisition by the Company, (B) any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any Entity controlled by the Company, or (C) any
acquisition by any Entity pursuant to a transaction which complied with clauses
(A), (B) and (C) of subsection (iii) of this paragraph 3(b); or
	 
	 	(ii)	 	individuals who, as of the date of this Agreement, 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 after the date of this Agreement whose election, or nomination for
election by the Company’s stockholders, 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 this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors; or
	 
	 	(iii)	 	the consummation of a reorganization, merger or consolidation
or sale of the Company, or a disposition of at least 50 percent of the assets
of the Company including goodwill (a “Business Combination”), provided,
however, that for purposes of this subsection (iii), a Business Combination
will not constitute a Change in Control if the following three requirements are
satisfied: following such Business Combination, (A) all or substantially all
of the individuals and entities who were the beneficial owners, respectively,
of the Company’s Voting Securities immediately prior to such Business
Combination beneficially own, directly or indirectly, more than 50 percent of
the ownership interests of the Entity resulting from such Business Combination
(including, without limitation, an Entity which as a result of such transaction
owns the Company or all or substantially all of the Company’s assets either
directly or through one or more subsidiaries or other affiliated entities) in
substantially the same proportions as their ownership immediately prior to such
Business

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	 	 	 	Combination, (B) no Covered Person (excluding any employee benefit
plan (or related trust) of the Company or such Entity resulting from such
Business Combination) beneficially owns, directly or indirectly, 50 percent
or more of, respectively, the ownership interests in the Entity resulting
from such Business Combination, 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 Entity 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 Board, providing
for such Business Combination. For this purpose any individual who becomes
a director after the date of this Agreement, and whose election or
nomination for election by the Company’s stockholders, 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 this purpose, any such individual whose
initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors.

	 	(c)	 	Notwithstanding any provisions of this paragraph 3 to the contrary, upon the
termination of the Grantee’s employment relationship with the Company and all of its
Affiliates due to the death of the Grantee, the Grantee incurring a Disability or the
Grantee being laid off and entitled to receive benefits under a Company severance plan,
the Forfeiture Restrictions shall lapse as to the Restricted Shares that are granted
hereby on the date of such termination of the Grantee’s employment relationship.
	 
	 	(d)	 	Notwithstanding any provisions of this paragraph 3 to the contrary, if, prior
to the time at which the forfeiture restrictions lapse, the Grantee’s employment with
the Company is terminated for any reason except death, Disability and layoff with
benefits under a Company severance plan as provided in paragraph 3(c), this Agreement
and the Restricted Shares shall be canceled and forfeited and all rights of the Grantee
thereunder and thereto shall terminate at the time the Grantee’s employment with the
Company is terminated.

	4.	 	Restrictions. Effective as of the Grant Date, the Company shall cause to be issued in
the Grantee’s name the Restricted Shares. The Company shall cause electronic book entries
evidencing the Restricted Shares, and any shares of the Stock or rights to acquire shares of
the Stock distributed by the Company in respect of Restricted Shares during any Restriction
Period (the “Retained Stock Distributions”), to be issued in the Grantee’s name. During the
Restriction Period such electronic book entries shall contain a restrictive legend notation to
the effect that ownership of such Restricted Shares (and any Retained Stock Distributions),
and the enjoyment of all rights appurtenant thereto, are subject to the restrictions, terms,
and conditions provided in the Plan and this Agreement. The Grantee shall have the right to
vote the Restricted Shares awarded to the Grantee herein and to receive and retain all regular
dividends paid in cash or property (other than Retained Stock Distributions), and to exercise
all other rights, powers and privileges of a holder of the Stock, with respect to such
Restricted Shares, with the exception that (a) the Grantee shall not be entitled to delivery
of such Restricted Shares until the Forfeiture

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	 	 	Restrictions shall have expired, (b) the Company shall retain custody of all Retained
Stock Distributions made or declared with respect to the Restricted Shares (and such
Retained Stock Distributions shall be subject to the same restrictions, terms and conditions
as are applicable to the Restricted Shares) until such time, if ever, as the Restricted
Shares with respect to which such Retained Stock Distributions shall have been made, paid,
or declared shall have become vested, and such Retained Stock Distributions shall not bear
interest or be segregated in separate accounts, and (c) the Grantee may not sell, assign,
transfer, pledge, exchange, encumber, or dispose of the Restricted Shares or any Retained
Stock Distributions during the Restriction Period. Upon issuance the book entry
representing the Restricted Shares shall be delivered to such depository as may be
designated by the Committee as a depository for safekeeping until the forfeiture of such
Restricted Shares occurs or the Forfeiture Restrictions lapse, together with stock powers or
other instruments of assignment, each endorsed in blank, which will permit transfer to the
Company of all or any portion of the Restricted Shares and any securities constituting
Retained Stock Distributions which shall be forfeited in accordance with the Plan and this
Agreement.
	 
	5.	 	Non-Transferability. The Grant shall not be transferable to any third party by the
Grantee otherwise than by will or the laws of descent and distribution.
	 
	6.	 	Compliance with Laws and Regulations. The obligation of the Company to deliver
Restricted Shares is conditioned upon compliance by the Grantee and by the Company with all
applicable laws and regulations, including regulations of federal and state agencies. If
requested by the Company, the Grantee shall provide to the Company, as a condition to the
delivery of any certificates representing Restricted Shares, appropriate evidence,
satisfactory in form and substance to the Company, that he is acquiring the Restricted Shares
for investment and not with a view to the distribution of the Restricted Shares or any
interest in the Restricted Shares, and a representation to the effect that the Grantee shall
make no sale or other disposition of the Restricted Shares unless (a) the Company shall have
received an opinion of counsel satisfactory to it in form and substance that such sale or
other disposition may be made without compliance with registration or other applicable
requirements of federal and state laws and regulations, and (b) all steps required to comply
with such laws and regulations in connection with the sale or other disposition of the
Restricted Shares have been taken and all necessary approvals have been received. The
certificates representing the Restricted Shares may bear an appropriate legend giving notice
of the foregoing restrictions on transfer of the Restricted Shares, and any other restrictive
legend deemed necessary or appropriate by the Committee.
	 
	7.	 	Tax Withholding. To the extent that the receipt of the Restricted Shares or the lapse
of any Forfeiture Restrictions results in income to the Grantee or other holder of the Grant
for federal, foreign, state or local income, employment or other tax purposes with respect to
which the Company or any Affiliate has a withholding obligation, the Grantee or other holder
shall deliver to the Company at the time of such receipt or lapse, as the case may be, such
amount of money as the Company or any Affiliate may require to meet its obligation under
applicable tax laws or regulations, and, if the person fails to do so, the Company is
authorized to withhold from the Restricted Shares granted hereby or from any cash or stock
remuneration then or thereafter payable to the Grantee in any capacity any tax required to be
withheld by reason of such resulting income. The Company shall

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	 	 	have no obligation to issue a stock certificate or electronic book entry for the shares of
the Stock granted hereby on lapse of the Forfeiture Restrictions until the Company or an
Affiliate has received payment sufficient to cover the withholding tax obligations described
in this paragraph 7.
	 
	8.	 	Section 83(b) Election. The Grantee shall not exercise the election permitted under
section 83(b) of the Internal Revenue Code of 1986, as amended, with respect to the Restricted
Shares without properly completing the attached NOTICE OF SECTION 83(b) ELECTION and
delivering the completed notice to the Director, Human Resources and Administrator along with
the entire amount necessary to satisfy the Company’s attendant tax withholding obligations, if
any, resulting from the Grantee’s election.
	 
	9.	 	Grantee Bound by Plan. In accepting the award of the Restricted Shares set forth in
this Agreement the Grantee accepts and agrees to be bound by all the terms and conditions of
this Agreement and the Plan (as presently in effect or hereafter amended), and by all
decisions and determinations of the Committee.
	 
	10.	 	Binding Effect: Integration: No Other Rights Created. This Agreement shall be binding
upon the heirs, executors, administrators and successors of the parties. This Agreement and
the Plan constitute the entire agreement between the parties with respect to the Grant, and
supersedes any prior agreements or documents with respect to the Grant. Neither this
Agreement nor the grant of the Grant shall constitute an employment agreement, nor shall
either confer upon the Grantee any right with respect to his continued status with the
Company.

	 	 	 	 	 	 	 

	 	 	HARVEST NATURAL RESOURCES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 

	 	 	 

James A. Edmiston
	 	 
	 
	 	 	 	 	 	 
	 

	 	TITLE: President and CEO
	 	 
	 
	 	 	 	 	 	 
	 

	 	GRANTEE:	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	«First_Name» «Last_Name»	 	 
	 
	 	 	 	 	 	 
	 

	 	DATE: 	 	 	 	 
	 

	 	 	 	 	 

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NOTICE OF SECTION 83(b) ELECTION (FOR U.S. CITIZENS ONLY):

As permitted under Section 83 (b) of the Internal Revenue Code of 1986, as amended, I intend to
make the following irrevocable election:

	o	 	I intend to make the election permitted under Section 83 (b) of the Internal Revenue Code of
1986, as amended, to be taxed immediately on the award of the Restricted Shares. I understand
the consequences and procedures for making this election, and I understand that it is my
responsibility to file the election with the Internal Revenue Service.
	 
	o	 	I do not intend to make the election permitted under Section 83 (b) of the Internal Revenue
Code of 1986, as amended, and will be taxed upon the lapse of restrictions applicable to the
Restricted Shares.

	 	 	 	 	 

	 

	 	 

«First_Name» «Last_Name»
	 	 

- 6 -exv10w3

Exhibit 10.3

HARVEST NATURAL RESOURCES

2010 LONG TERM INCENTIVE PLAN

Stock Option Award Agreement

     This Stock Option Award Agreement (this “Agreement”) is made at Houston, Texas, USA, effective
as of «Grant_Date» (the “Grant Date”), by and between HARVEST NATURAL RESOURCES, INC. (the
“Company”) and «First_Name» «Last_Name» (the “Optionee”).

     It is hereby agreed as follows:

	1.	 	Grant of Option; Consideration. The Company has granted, pursuant to Article V of the
Harvest Natural Resources 2010 Long Term Incentive Plan (the “Plan”), to the Optionee on
«Grant_Date», a nonqualified stock option to purchase up to «Option_Amount» shares of the
Company’s Common Stock, par value $0.01 per share (the “Shares”), at an exercise price of
«Option_Price» per share (the “Option”), subject to the terms of this Agreement and the Plan.
The Option granted hereunder is not intended to constitute an incentive stock option within
the meaning of Section 422 of the Internal Revenue Code of 1986, as amended. The terms of the
Option are subject to adjustment in certain circumstances, as provided in the Plan.
	 
	 	 	The Optionee shall not be required to pay any consideration for the grant of the Option,
except for his agreement to serve as a Director, Employee or Consultant of the Company or
any Affiliate and other agreements set forth herein.
	 
	2.	 	Incorporation of Plan by Reference. The Option has been granted to the Optionee under
the Plan, a copy of which has been previously made available to the Optionee. All of the
terms, conditions, and other provisions of the Plan are hereby incorporated by reference into
this Agreement. Capitalized terms that are not otherwise defined in this Agreement shall have
the meanings given to such terms in the Plan. If there is any conflict between the provisions
of this Agreement and the provisions of the Plan, the provisions of the Plan shall govern.
	 
	3.	 	Vesting.

	 	(a)	 	Subject to all of the terms and conditions of the Plan and this Agreement, and
except as provided below in this paragraph 3 in the event of a Change in Control or the
Disability or death of the Optionee, the Option shall vest and otherwise shall be
exercisable as provided below and in the Plan:

	 	(i)	 	on and after «M_1st_Vesting_Date», the Option may be exercised
with respect to up to «M_1st_Vesting_Shares» of the Shares subject to the
Option;
	 
	 	(ii)	 	on and after «M_2nd_Vesting_Date», the Option may be exercised
with respect to up to an additional «M_2nd_Vesting_Shares» of the Shares subject
to the Option; and

 

 

	 	(iii)	 	on and after «M_3rd_Vesting_Date», the Option may be exercised
with respect to up to an additional «M_3rd_Vesting_Shares» of the Shares subject
to the Option, so that on and after «M_3rd_Vesting_Date» the Option shall be
fully vested and exercisable in full.

	 	(b)	 	Notwithstanding any other provision of this Agreement to the contrary, if, on
or before «M_3rd_Vesting_Date», a Change in Control occurs then the Option shall become
fully vested and exercisable upon the occurrence of the Change in Control provided that
the Optionee continues to serve as a Director, Employee or Consultant of the Company or
any Affiliate immediately prior to the occurrence of such Change in Control. For
purposes of this Agreement, a “Change in Control” means the occurrence of any of the
following:

	 	(i)	 	the acquisition by any individual, by any corporation,
partnership, association, joint-stock company, limited liability company,
trust, unincorporated organization or other business entity (each, an “Entity”)
or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934) (a “Covered Person”) of beneficial ownership (within the
meaning of rule 13d-3 promulgated under the Securities Exchange Act of 1934) of
50 percent or more of the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of
directors (the “Voting Securities”); provided, however, that for purposes of
this subsection (i) of this paragraph 3(b) the following acquisitions shall not
constitute a Change in Control: (A) any acquisition by the Company, (B) any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any Entity controlled by the Company, or (C) any
acquisition by any Entity pursuant to a transaction which complied with clauses
(A), (B) and (C) of subsection (iii) of this paragraph 3(b); or
	 
	 	(ii)	 	individuals who, as of the date of this Agreement, 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 after the date of this Agreement whose election, or nomination for
election by the Company’s stockholders, 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 this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors; or
	 
	 	(iii)	 	the consummation of a reorganization, merger or consolidation
or sale of the Company, or a disposition of at least 50 percent of the assets
of the Company including goodwill (a “Business Combination”), provided,
however, that for purposes of this subsection (iii), a Business Combination
will not constitute a Change in Control if the following three requirements are
satisfied: following such Business Combination, (A) all or substantially all
of the individuals and entities who were the beneficial

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	 		 	owners, respectively, of the Company’s Voting Securities immediately prior
to such Business Combination beneficially own, directly or indirectly, more
than 50 percent of the ownership interests of the Entity resulting from such
Business Combination (including, without limitation, an Entity which as a
result of such transaction owns the Company or all or substantially all of
the Company’s assets either directly or through one or more subsidiaries or
other affiliated entities) in substantially the same proportions as their
ownership immediately prior to such Business Combination, (B) no Covered
Person (excluding any employee benefit plan (or related trust) of the
Company or such Entity resulting from such Business Combination)
beneficially owns, directly or indirectly, 50 percent or more of,
respectively, the ownership interests in the Entity resulting from such
Business Combination, 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 Entity 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 Board, providing for such
Business Combination. For this purpose any individual who becomes a
director after the date of this Agreement, and whose election or nomination
for election by the Company’s stockholders, 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 this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election
contest with respect to the election or removal of directors.

	 	(c)	 	Notwithstanding any other provision of this paragraph 3 to the contrary, if, on
or before «M_3rd_Vesting_Date», the Optionee’s employment or service relationship with
the Company and all of its Subsidiaries is terminated due to the Disability or death of
the Optionee then the Option shall become fully vested and exercisable on the date of
such termination of the Optionee’s employment or service relationship.
	 
	 	(d)	 	To the extent not exercised, installments shall be cumulative and may be
exercised in whole or in part until the Option expires and terminates as provided in
paragraph 4 of this Agreement.
	 
	 	(e)	 	Notwithstanding any other provision of this Agreement to the contrary, in no
event shall the Option be exercisable on or after the fifth anniversary of the Grant
Date.

	4.	 	Term and Termination of Service. The Option, to the extent it has not been previously
exercised, shall expire at 5:00 p.m. (Central Time) on «Expiration_Date» or, if earlier, at
5:00 p.m. (Central Time):

	 	(a)	 	on the date 3 months after the Optionee ceases to be a Director, Employee or
Consultant of the Company or any Affiliate for any reason other than a Change in
Control, Disability or death;

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	 	(b)	 	on the date 12 months after the Optionee ceases to be a Director, Employee or
Consultant of the Company or any Affiliate by reason of Disability;
	 
	 	(c)	 	on the date 12 months after the date of the Optionee’s death while in the
service or employ of the Company or an Affiliate or within 3 months after the
termination of such employment or service; or
	 
	 	(d)	 	on the date 12 months after the Optionee’s termination of employment or service
if such employment or service is terminated within 730 days after the effective date of
a Change in Control.
	 
	 	The Option shall be exercisable after the date of such termination of Optionee’s service or
employment only to the extent the Option was exercisable at the date of such termination as
provided in paragraph 3.
	 
	 	Notwithstanding any provisions of this Agreement to the contrary, if the Optionee’s
employment or service relationship with the Company and all Subsidiaries is terminated for
Cause, the Option shall terminate and may no longer be exercised to any extent from and
after the time the Optionee’s employment or service relationship with the Company and all
Subsidiaries is terminated for Cause. For purposes of this Agreement, the term “Cause”
means (i) the continued failure of the Optionee to perform substantially all of his or her
duties assigned by the Company or an Affiliate (other than physical or mental incapacity),
(ii) the willful engaging by the Optionee in gross misconduct which is materially and
demonstrably injurious to the Company or any Affiliate or (iii) the conviction of, or plea
of guilty or nolo contendere to, a felony by the Optionee.

	5.	 	Option Exercise. The Option may be exercised in whole or in part (to the extent then
exercisable) by contacting the Company’s designated agent for processing Option exercises. An
Option exercise must be accompanied by payment in full of the exercise price and all tax
withholding amounts described in paragraph 8 below (i) in cash, (ii) through the withholding
of shares of Stock (which would otherwise be delivered to the Optionee) with an aggregate Fair
Market Value on the exercise date equal to the aggregate exercise price of the Option, (iii) a
combination of a cash payment and such surrender of shares, (iv) by means of a broker-assisted
cashless exercise to the extent then permitted under rules and regulations adopted by the
Committee, or (v) in such other manner as may then be permitted under rules and regulations
adopted by the Committee. As soon as practicable after the valid exercise of the Option, the
Company shall deliver to the Optionee one or more stock certificates representing the Shares
so purchased, with any requisite legend affixed.
	 
	6.	 	Non-Transferability. No right or interest of the Optionee in the Option shall be
pledged, encumbered, or hypothecated to or in favor of any third party or shall be subject to
any lien, obligation, or liability of the Optionee to any third party. The Option shall not
be transferable or assignable to any third party by the Optionee otherwise than (i) by will or
the laws of descent and distribution, (ii) pursuant to a qualified domestic relations order as
defined under the Internal Revenue Code or Title I of the Employee Retirement Income Security
Act of 1974 to an immediate family member, or (iii) to the extent authorized by the Committee,
to an immediate family member of the Optionee who acquires the options from the Optionee
through a gift.

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	7.	 	Compliance with Laws and Regulations. The obligation of the Company to deliver Shares
upon the exercise of the Option is conditioned upon compliance by the Optionee and by the
Company with all applicable laws and regulations, including regulations of federal and state
agencies. If requested by the Company, the Optionee shall provide to the Company, as a
condition to the valid exercise of the Option and the delivery of any certificates
representing Shares, appropriate evidence, satisfactory in form and substance to the Company,
that he is acquiring the Shares for investment and not with a view to the distribution of the
Shares or any interest in the Shares, and a representation to the effect that the Optionee
shall make no sale or other disposition of the Shares unless (a) the Company shall have
received an opinion of counsel satisfactory to it in form and substance that such sale or
other disposition may be made without compliance with registration or other applicable
requirements of federal and state laws and regulations, and (b) all steps required to comply
with such laws and regulations in connection with the sale or other disposition of the Shares
have been taken and all necessary approvals have been received. The certificates representing
the Shares may bear an appropriate legend giving notice of the foregoing restrictions on
transfer of the Shares, and any other restrictive legend deemed necessary or appropriate by
the Committee.

	8.	 	Tax Withholding. To the extent that the receipt, vesting or exercise of the Option
results in income to the Optionee for federal, state or local income, employment or other tax
purposes with respect to which the Company or any Affiliate has a withholding obligation, the
Optionee shall deliver to the Company at the time of such receipt, vesting or exercise, as the
case may be, such amount of money as the Company or any Affiliate may require to meet its
obligation under applicable tax laws or regulations, and, if the Optionee fails to do so, the
Company is authorized to withhold from the Shares issued under this Agreement or from any cash
or stock remuneration then or thereafter payable to the Optionee in any capacity any tax
required to be withheld by reason of such resulting income, including (without limitation) the
Shares, sufficient to satisfy the withholding obligation based on the Fair Market Value of the
Shares on the date that the withholding obligation arises. With the consent of the Committee,
the Optionee may elect to have the Company withhold from the Shares to be delivered upon the
exercise of the Option, a sufficient number of such shares to satisfy the Optionee’s federal,
state, and local withholding tax obligations relating to the Option exercise to the extent
then permitted under rules and regulations adopted by the Committee and in effect at the time
of the exercise of the Option. In such case, the Shares withheld or the shares surrendered
will be valued at the Fair Market Value at the time of the exercise of the Option. The
Company shall have no obligation to issue a stock certificate or electronic book entry for the
Shares to be acquired in connection with the exercise of the Option until the Company or an
Affiliate has received payment sufficient to cover the withholding tax obligations described
in this paragraph 8.

	9.	 	No Rights of a Stockholder. The Optionee shall not have any rights as a stockholder
with respect to any shares covered by the Option until the date of the issuance of the stock
certificate or certificates to the Optionee for such shares following the Optionee’s exercise
of the Option, in whole or in part, pursuant to its terms and conditions of this Agreement and
the Plan and payment for such shares and all withholding tax obligations with respect thereto.
No adjustment shall be made for dividends or other rights for which the record date is prior
to the date such certificate or certificates are issued.

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	10.	 	Limits on Exercisability. The Option shall not be exercisable until (a) the
effective registration under the Securities Act of 1933, as amended (the “Act”), of the shares
to be received pursuant to this Agreement (unless in the opinion of counsel for the Company
such offering is exempt from registration under the Act); and (b) compliance with all other
applicable laws. If the Optionee is an officer or “affiliate” of the Company (as such term is
defined under the Act), the Optionee consents to the placing on the certificate for any shares
acquired upon exercise of the Option of an appropriate legend restricting resale or other
transfer of such shares, except in accordance with the Act and all applicable rules
thereunder.
	 
	11.	 	Optionee Bound by Plan. In accepting the award of the Option set forth in this
Agreement the Optionee accepts and agrees to be bound by all the terms and conditions of this
Agreement and the Plan (as presently in effect or hereafter amended), and by all decisions and
determinations of the Committee.
	 
	12.	 	Binding Effect: Integration: No Other Rights Created. This Agreement shall be binding
upon the heirs, executors, administrators and successors of the parties. This Agreement and
the Plan constitute the entire agreement between the parties with respect to the Option, and
supersedes any prior agreements or documents with respect to the Option. Neither this
Agreement nor the grant of the Option shall constitute an employment agreement, nor shall
either confer upon the Optionee any right with respect to his continued status with the
Company.

	 	 	 	 	 	 	 

	 	 	HARVEST NATURAL RESOURCES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	BY:	 	 	 	 
	 

	 	 	 

James A. Edmiston
	 	 
	 
	 	 	 	 	 	 
	 

	 	TITLE: President and CEO
	 	 
	 
	 	 	 	 	 	 
	 

	 	OPTIONEE:	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	«First_Name» «Last_Name»	 	 
	 
	 	 	 	 	 	 
	 

	 	DATE: 	 	 	 	 
	 

	 	 	 	 	 

- 6 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]