Document:

EX-10.1

 

Exhibit 10.1

CNX GAS CORPORATION

LONG-TERM INCENTIVE PROGRAM

     CNX GAS CORPORATION, a Delaware corporation (the “Company”), hereby establishes this CNX GAS
CORPORATION LONG-TERM INCENTIVE PROGRAM (the “Program”), in accordance with the provisions of the
CNX Gas Corporation Equity Incentive Plan, as amended (the “Plan”), and the terms provided herein.

     WHEREAS, the Company maintains the Plan for the benefit of its key employees and that of its
Affiliates; and

     WHEREAS, in order to further align the interests of key employees with the interests of the
stockholders, the Company desires to provide long-term incentive compensation; and

     WHEREAS, the Program is intended to enhance the Company’s ability to retain the employment of
participants in the Program, and also to protect the Company’s legitimate business interests,
including its confidential information, customer relationships, and good will, through the use of
restrictive covenants; and

     WHEREAS, Section 8 of the Plan authorizes the Company to make performance-based awards.

     NOW, THEREFORE, the Independent Subcommittee of the Compensation Committee of the Company’s
Board of Directors (including any successor to its duties, the “Independent Subcommittee”) hereby
adopts the terms of the Program on the following terms and conditions:

     1. Purpose. The purposes of the Program are to: (i) provide long-term incentive
compensation to key employees to further align their interests with those of the Company’s
stockholders; and (ii) protect the Company’s legitimate business interests, including its
confidential information, customer relationships, and good will, through the use of restrictive
covenants. In addition to the terms and conditions set forth herein, awards under the Program are
subject to, and governed by, the terms and conditions set forth in the Plan, which are hereby
incorporated by reference. Unless the context otherwise requires, capitalized terms used in this
Program and not otherwise defined herein shall have the meanings set forth in the Plan. In the
event of any conflict between the provisions of the Program and the Plan, the Plan shall control.

     2. Effective Date. The effective date of this Program is October 11, 2006. The
Program will remain in effect until the earlier of December 31, 2009 or the closing date of a
Change in Control event as defined in the Plan, unless otherwise terminated sooner as provided in
Section 23 (“Termination Date”).

     3. Eligibility. The Chief Executive Officer of the Company (the “CEO”) shall nominate
the employees of the Company and its Affiliates who shall be eligible to participate in the
Program. The Independent Subcommittee shall select from the nominated employees those individuals
who shall participate in the Program (the “Participants”). In the event that an employee is hired
by the Company or an Affiliate during the Performance Period, upon

 

 

nomination by the CEO, the Independent Subcommittee shall determine whether such employee will
become a Participant in the Program.

     4. Performance Share Unit Awards.

	 	4.1.	 	The Independent Subcommittee shall determine the number of performance share
units (the “Performance Share Units”) to be awarded to each Participant. Each
Performance Share Unit awarded under the Program shall represent a contingent right to
receive a cash payment, determined by reference to the value of one share of the
Company’s common stock as described more fully herein, to the extent such Performance
Share Unit is earned and becomes payable pursuant to the terms of this Program.
Notwithstanding, Performance Share Units as initially awarded have no independent
economic value, but rather are mere units of measurement used for purpose of
calculating the value of benefits, if any, to be paid under the Program.

	 	4.2.	 	Performance Units shall be increased and/or decreased in accordance with the
terms of the Program as described more fully herein. Notwithstanding any provision of
this Plan to the contrary, the Independent Subcommittee shall not use its discretionary
authority to increase the number of Performance Share Units that would otherwise be
earned upon attainment of the Performance Condition (as defined below) with respect to
any award that is intended to be performance-based compensation under Section 162(m) of
the Code.

     5. Performance Condition of the Performance Share Units. Subject to Section 9, the
total number of Performance Share Units that will be earned by a Participant will be based on the
Company’s total stockholder return (the “Performance Condition”) relative to the total stockholder
return of each company in the peer group (as set forth on Attachment A), for the period of October
11, 2006 to the Termination Date (the “Performance Period”); provided, however, that the ability to
earn Performance Share Units and to receive payment thereon under the Program is expressly
contingent upon achievement of the threshold for the Performance Condition and otherwise satisfying
all other terms and conditions of the Program. For purposes of this Program, total stockholder
return for the Performance Period will be calculated as follows:

Step 1

     A “Beginning Point” will be established for the Company and each company in the peer
group. This Beginning Point will be defined as one share of stock with a value equal to the
average closing stock price as reported in The Wall Street Journal for the ten (10) business
day period beginning on October 11, 2006 (or the first business day immediately thereafter)
for each company.

Step 2

     Dividends paid for each company will be cumulatively added to the Beginning Point as
additional shares of such company’s stock. The closing price on the last business day of
the month in which the record date for the dividend occurs will be used

 

 

as the basis for determining the number of shares to be added. The total number of
shares accumulated during the Performance Period, if any, plus the Beginning Point will be
referred to as the Total Units Held at Ending Point.

Step 3

     Except as provided in the following sentence, an “Ending Point” will be defined as
Total Units Held at Ending Point for each company times the average closing stock price as
reported in The Wall Street Journal for the last ten (10) business days of the Performance
Period for each company. In the event of a Change in Control as then defined in the Plan,
the Ending Point will be defined as the Total Units Held at Ending Point times the average
of the closing price as reported in The Wall Street Journal for the ten (10) business days
preceding the closing of the Change in Control transaction.

Step 4

     Total Stockholder Return (“TSR”) will be expressed as a percentage and is calculated by
dividing the Ending Point by the Beginning Point and then subtracting 1 from the result.
Each company, including the Company, will be ranked in descending order by the TSR so
calculated; provided, however, if a member of the peer group ceases to exist during the
Performance Period due to a cash merger, tender offer, or otherwise, such member shall be
excluded from all determinations to be made under the Program.

Step 5

     The Performance Share Units earned by a Participant will be determined by multiplying
the Participant’s Performance Share Units by the applicable “Percent of Performance Share
Units Earned” that corresponds to the Company’s “Percentage Ranking in TSR” for the
Performance Period, as set forth in the schedule shown below.

	 	 	 	 	 
	OUTCOME RELATIVE TO PEER GROUP TSR
	 	 	 	 	Percent of
	 	 	Percentage	 	Performance
	Level of Performance	 	Ranking in TSR	 	Units Earned
	 	 	 	 	 
	Below Threshold
	 	Below 25th percentile
	 	0%
	Threshold
	 	25th percentile
	 	50%
	Target
	 	50th percentile
	 	100%
	Outstanding
	 	75th percentile
	 	200%
	Maximum
	 	90th percentile or greater
	 	250%

Note: Interpolation between points will be made on a straight line basis. Below the 25th
percentile and above the 90th percentile, there shall be no interpolation.

 

 

     6. Issuance and Distribution.

	 	6.1.	 	After the end of the Performance Period, the Independent Subcommittee shall
certify in writing the extent to which the applicable Performance Condition and any
other material terms of the Program have been achieved. For purposes of this
provision, and for so long as the Code permits, the approved minutes of the Independent
Subcommittee meeting in which the certification is made may be treated as written
certification.

	 	6.2.	 	Subject to the terms and conditions of this Program: (i) Performance Share
Units earned by a Participant will be settled and paid in cash by the Company or its
Affiliates, as applicable, the amount of which shall be calculated based upon each
Performance Share Unit being equal in value to a corresponding share of Company common
stock as of the last day of the Performance Period, as soon as practicable following
the end of the Performance Period on a date determined in the Company’s discretion, but
in no event later than two and one-half months after the end of the Performance Period
(the “Payment Date”); and (ii) in the event of a Change in Control, the value of such
units will be distributed in cash on the closing date of the Change in Control
transaction (the “CiC Payment Date”), and such value shall be determined as of the
closing date of such transaction with the closing date of such transaction being deemed
the last day of the Performance Period and calculated in accordance with the provisions
of Section 5 herein. Notwithstanding the foregoing, no award intended to qualify as
performance-based compensation within the meaning of Section 162(m) of the Code shall
be become payable or paid prior to approval of the Plan’s material terms by the
Company’s stockholders.

     7. Change in Control. Upon a Change in Control, unless otherwise provided by separate
agreement between the Company and the Participant, in the event that any benefits under this
Program, either alone or together with any other payments or benefits otherwise owed to the
Participant by the Company on or after a Change in Control would, in the Company’s good faith
opinion, be deemed under Section 280G of the Code, or any successor provision, to be parachute
payments, the benefits under this Program shall be reduced to the extent necessary in the Company’s
good faith opinion so that no portion of the benefits provided herein shall be considered excess
parachute payments under Section 280G of the Code or any successor provision. The Company’s good
faith opinion shall be conclusive and binding upon the Participant.

     8. Dividends. Each Performance Share Unit will be cumulatively credited with
dividends that are paid on the Company’s common stock in the form of additional units. These
additional units shall be deemed to have been purchased on the last business day of the month in
which the record date for the dividend occurs using the closing stock price of the Company’s common
stock as reported in The Wall Street Journal and shall be subject to all the same conditions and
restrictions as provided in this Program applicable to Performance Share Units.

     9. Change in Participant’s Status. In the event a Participant’s employment with the
Company or any Affiliate shall terminate prior to the Payment Date or the CiC Payment Date, as

 

 

applicable, for any reason other than the death or Disability of the Participant, the
Performance Share Units awarded to the Participant shall be cancelled and forfeited, whether
payable or not, without payment by the Company or any Affiliate. In the event a Participant’s
employment with the Company or any Affiliate shall terminate due to death or Disability during the
Performance Period, the Participant shall be entitled to a prorated portion of the Performance
Share Units, to the extent earned pursuant to the provisions of this Program, determined at the end
of the Performance Period and based on the ratio of the number of complete months the Participant
is employed or serves during the Performance Period to the total number of months in the
Performance Period (or the number of remaining months in the Performance Period if the Participant
is admitted after the start of the Performance Period). Any payments due a deceased Participant
shall be paid to his estate as provided herein after the end of the Performance Period.

     10. Responsibilities of the Independent Subcommittee. In addition to the authority
granted to the Independent Subcommittee under the Plan, the Independent Subcommittee has
responsibility for all aspects of the Program’s administration, including but not limited to:
ensuring that the Program is administered in accordance with the provisions of the Program and the
Plan; approving Participants; authorizing Performance Share Unit awards to Participants; and
adjusting Performance Share Units as authorized hereunder consistent with the terms of the Program.
All decisions of the Independent Subcommittee under the Program shall be final, conclusive and
binding on all interest parties. No member of the Independent Subcommittee shall be liable for any
action or determination made in good faith on the Program or any Performance Share Units awarded
thereunder.

     11. Tax Consequences/Withholding.

	 	11.1.	 	It is intended that: (i) a Participant’s Performance Share Units shall be
considered to be subject to a substantial risk of forfeiture in accordance with those
terms as defined in Section 409A and 3121(v)(2) of the Code; and (ii) a Participant
shall have merely an unfunded, unsecured promise to be paid a benefit, and such
unfunded promise shall not consist of a transfer of “property” within the meaning of
Code Section 83.

	 	11.2.	 	A Participant shall timely remit to the Company all applicable federal, state
and local income and employment taxes (including taxes of any foreign jurisdiction)
which the Company is required to withhold at any time with respect to the Performance
Share Units. Such payment shall be made to the Company in full, in cash or check, or
as otherwise authorized under the terms of the Plan.

	 	11.3.	 	This Program is intended to satisfy all applicable requirements of Section
409A of the Code and shall be construed accordingly. The Company in its discretion may
delay payment on Performance Share Units, or take any other action it deems necessary
to comply with the requirements of Section 409A of the Code, including amending the
Program, without Participant consent, in any manner it deems necessary to cause the
Program to comply with the applicable requirements of Section 409A of the Code.
Notwithstanding, Section 409A of the Code may impose upon the Participant certain taxes
or other charges for which the Participant is and shall remain solely responsible, and
nothing contained in this

 

 

	 	 	 	  Program or the Plan shall be construed to obligate the Company or any Affiliate for
any such taxes or other charges.

	 	11.4.	 	Notwithstanding any provision of the Program to the contrary, if an award of
Performance Share Units under this Program is intended to qualify as performance-based
compensation under Section 162(m) of the Code and the regulations issued thereunder and
a provision of this Program would prevent such award from so qualifying, such provision
shall be administered, interpreted and construed to carry out such intention (or
disregarded to the extent such provision cannot be so administered, interpreted or
construed).

     12. Non-Competition.

	 	12.1.	 	The Participants hereunder agree that this Section 12 is reasonable and
necessary in order to protect the legitimate business interests and goodwill of the
Company, including the Company’s trade secrets, valuable confidential business and
professional information, substantial relationships with prospective and existing
customers and clients, and specialized training provided to Participants and other
employees of the Company. The Participants acknowledge and recognize the highly
competitive nature of the business of the Company and its Affiliates and accordingly
agree that during the term of each of their employment and for a period of two (2)
years after the termination thereof:

     (a) The Participants will not directly or indirectly engage in any business
substantially similar to any line of business conducted by the Company or any of its
Affiliates, including, but not limited to, where such engagement is as an officer,
director, proprietor, employee, partner, investor (other than as a holder of less
than 1% of the outstanding capital stock of a publicly traded corporation),
consultant, advisor, agent or sales representative, in any geographic region in
which the Company or any of its Affiliates conducted business;

     (b) The Participants will not contact, solicit, perform services for, or accept
business from any customer or prospective customer of the Company or any of its
Affiliates;

     (c) The Participants will not directly or indirectly induce any employee of the
Company or any of its Affiliates to (1) engage in any activity or conduct which is
prohibited pursuant to this subparagraph 12(a), or (2) terminate such employee’s
employment with the Company or any of its Affiliates. Moreover, the Participants
will not directly or indirectly employ or offer employment (in connection with any
business substantially similar to any line of business conducted by the Company or
any of its Affiliates) to any person who was employed by the Company or any of its
Affiliates unless such person shall have ceased to be employed by the Company or any
of its Affiliates for a period of at least 12 months; and

 

 

     (d) The Participants will not directly or indirectly assist others in engaging
in any of the activities, which are prohibited under subparagraphs (i) — (iii)
above.

	 	12.2.	 	It is expressly understood and agreed that although the Participants and the
Company consider the restrictions contained in this Section 12 to be reasonable, if a
final judicial determination is made by a court of competent jurisdiction that the time
or territory or any other restriction contained in this Program is an unenforceable
restriction against any Participant, the provisions of this Program shall not be
rendered void but shall be deemed amended to apply as to such maximum time and
territory and to such maximum extent as such court may judicially determine or indicate
to be enforceable against such Participant. Alternatively, if any court of competent
jurisdiction finds that any restriction contained in this Program is unenforceable, and
such restriction cannot be amended so as to make it enforceable, such finding shall not
affect the enforceability of any of the other restrictions contained herein. The
restrictive covenants set forth in this Section 12 shall be extended by any amount of
time that a Participant is in breach of such covenants, such that the Company receives
the full benefit of the time duration set forth above.

     13. Confidential Information and Trade Secrets. The Participants and the Company
agree that certain materials, including, but not limited to, information, data and other materials
relating to customers, development programs, costs, marketing, trading, investment, sales
activities, promotion, credit and financial data, manufacturing processes, financing methods, plans
or the business and affairs of the Company and its Affiliates, constitute proprietary confidential
information and trade secrets. Accordingly, the Participants will not at any time during or after
a Participant’s employment with the Company (including any Affiliate) disclose or use for such
Participant’s own benefit or purposes or the benefit or purposes of any other person, firm,
partnership, joint venture, association, corporation or other business organization, entity or
enterprise other than the Company and any of its Affiliates, any proprietary confidential
information or trade secrets, provided that the foregoing shall not apply to information which is
not unique to the Company or any of its Affiliates or which is generally known to the industry or
the public other than as a result of such Participant’s breach of this covenant. The Participants
agree that upon termination of employment with the Company (including any Affiliate) for any
reason, the Participants will immediately return to the Company all memoranda, books, papers,
plans, information, letters and other data, and all copies thereof or therefrom, which in any way
relate to the business of the Company and its Affiliates, except that the Participants may retain
personal notes, notebooks and diaries. The Participants further agree that the Participants will
not retain or use for their own account at any time any trade names, trademark or other proprietary
business designation used or owned in connection with the business of the Company or any of its
Affiliates.

     14. Remedies/Forfeiture.

	 	14.1.	 	The Participants acknowledge that a violation or attempted violation on a
Participant’s part of Sections 12 and 13 will cause irreparable damage to the Company
and its Affiliates, and the Participants therefore agree that the Company

 

 

	 	 	 	and its Affiliates shall be entitled as a matter of right to an injunction, out of
any court of competent jurisdiction, restraining any violation or further violation
of such promises by the Participants or a Participant’s employees, partners or
agents. The Participants agree that such right to an injunction is cumulative and
in addition to whatever other remedies the Company (including any Affiliate) may
have under law or equity. Specifically, the Participants agree that such right to
an injunction is cumulative and in addition to the Participants’ obligations to make
timely payment to the Company as set forth in Section 14(b) of this Program. The
Participants further acknowledge and agree that a Participant’s Performance Share
Units shall be cancelled and forfeited without payment by the Company if such
Participant breaches any of his or her obligations set forth in Sections 12 and 13
herein.

	 	14.2.	 	At any point after becoming aware of a breach of any obligation set forth in
Sections 12 and 13 of this Program, the Company shall provide notice of such breach to
a Participant. By agreeing to participate in this Program, the Participants agree that
within ten (10) days after the date the Company provides such notice, a Participant
shall pay to the Company in cash an amount equal to any and all distributions paid to
or on behalf of such Participant under of this Program within the six (6) months prior
to the date of the earliest breach. The Participants agree that failure to make such
timely payment to the Company constitutes an independent and material breach of the
terms and conditions of this Program, for which the Company may seek recovery of the
unpaid amount as liquidated damages, in addition to all other rights and remedies the
Company may have resulting from a Participant’s breach of the obligations set forth in
Sections 12 and 13. The Participants agree that timely payment to the Company as set
forth in this provision of the Program is reasonable and necessary because the
compensatory damages that will result from breaches of Sections 12 and/or 13 cannot
readily be ascertained. Further, the Participants agree that timely payment to the
Company as set forth in this provision of the Program is not a penalty, and it does not
preclude the Company from seeking all other remedies that may be available to the
Company, including without limitation those set forth in this Section 14.

     15. Assignment/Nonassignment.

	 	15.1.	 	The Company shall have the right to assign this Program, including without
limitation Sections 12 and 13, and the Participants agree to remain obligated by all
provisions of this Program that are assigned to any successor, assign or surviving
entity. Any successor to the Company is an intended third party beneficiary of this
Program.

	 	15.2.	 	The Performance Share Units shall not be sold, pledged, assigned,
hypothecated, transferred or disposed of (a “Transfer”) in any manner, other than by
will or the laws of descent and distribution. Any attempt by a Participant to Transfer
the Performance Share Units in violation of the terms of the Program shall render the

 

 

	 	 	 	Performance Share Units null and void, and result in the immediate forfeiture of
such Performance Share Units, without payment by the Company.

     16. Impact on Benefit Plans. Payments under the Program shall not be considered as
earnings for purposes of the Company’s and/or Affiliate’s qualified retirement plans or any such
retirement or benefit plan unless specifically provided for therein. Nothing herein shall prevent
the Company or any Affiliate from maintaining additional compensation plans and arrangements for
its employees.

     17. Successors; Changes in Stock. The obligation of the Company under the Program
shall be binding upon the successors and assigns of the Company. If a dividend or other
distribution shall be declared upon the Company’s common stock payable in shares of Company common
stock, the Performance Share Units and the shares of Company common stock on which the Performance
Condition is based shall be adjusted by adding thereto the number of shares of Company common stock
which would have been distributable thereon if such shares and Performance Share Units had been
actual Company shares and outstanding on the date fixed for determining the stockholders entitled
to receive such stock dividend or distribution. In the event of any spin-off, split-off or
split-up, dividend in property other than cash, recapitalization or other change in the capital
structure of the Company, or any merger, consolidation, reorganization, partial or complete
liquidation or other distribution of assets (other than a normal cash dividend), or any other
corporate transaction or event having an effect similar to any of the foregoing, or extraordinary
distribution to stockholders of the Company’s common stock, the Performance Share Units and the
shares of Company common stock on which the Performance Condition is based shall be appropriately
adjusted to prevent dilution or enlargement of the rights of Participants which would otherwise
result from any such transaction, provided such adjustment shall be consistent with Code Section
162(m) and Section 409A.

     In the case of a Change in Control, any obligation under the Program shall be handled in
accordance with the terms of Sections 6 and 7 hereof. In any case not constituting a Change in
Control in which the Company’s common stock is changed into or becomes exchangeable for a different
number or kind of shares of stock or other securities of the Company or another corporation, or
cash or other property, whether through reorganization, reclassification, recapitalization, stock
split-up, combination of shares, merger or consolidation, then (i) the value of the Performance
Share Units constituting an award shall be calculated based on the closing price of such common
stock on the closing date of the transaction on the principal market on which such common stock is
traded, (ii) there shall be substituted for each Performance Share Unit constituting an award, the
number and kind of shares of stock or other securities (or cash or other property) into which each
outstanding share of the Company’s common stock shall be so changed or for which each such share
shall be exchangeable, and (iii) the share of Company common stock on which the Performance
Condition is based shall be appropriately and equitably adjusted. In the case of any such
adjustment, the Units shall remain subject to the terms of the Program.

     18. Governing Law, Jurisdiction, and Venue.

	 	18.1.	 	This Program shall be governed by and construed in accordance with the laws of
the State of Delaware, without giving effect to the principles of conflicts of law.

 

 

	 	18.2.	 	Participant hereby irrevocably submits to the personal and exclusive
jurisdiction of the United States District Court for the Western District of
Pennsylvania or the Court of Common Pleas of Allegheny County, Pennsylvania in any
action or proceeding arising out of, or relating to, this Program (whether such action
or proceeding arises under contract, tort, equity or otherwise). Participant hereby
irrevocably waives any objection which Participant now or hereafter may have to the
laying of venue or personal jurisdiction of any such action or proceeding brought in
said courts.

	 	18.3.	 	Jurisdiction over, and venue of, any such action or proceeding shall
be exclusively vested in the United States District Court for the Western District of
Pennsylvania or the Court of Common Pleas of Allegheny County, Pennsylvania.

	 	18.4.	 	Provided that the Company commences any such action or proceeding in the
courts identified in Section 18(c), Participant irrevocably waives Participant’s right
to object to or challenge the above selected forum on the basis of inconvenience or
unfairness under 28 U.S.C. § 1404, 42 Pa. C.S. § 5322 or similar state or federal
statutes. Participant agrees to reimburse the Company for all of the attorneys fees
and costs it incurs to oppose Participant’s efforts to challenge or object to
litigation proceeding in the courts identified in Section 18(c) with respect to actions
arising out of or relating to this Program (whether such actions arise under contract,
tort, equity or otherwise).

     19. Failure to Enforce Not a Waiver. The failure of the Company to enforce at any
time any provision of this Program shall in no way be construed to be a waiver of such provision or
of any other provision hereof.

     20. Severability. In the event that any one or more of the provisions of this Program
shall be held to be invalid, illegal or unenforceable, the validity, legality or enforceability of
the remaining provisions shall not in any way be affected or impaired thereby.

     21. Funding. The Program is not funded and all amounts payable hereunder, if any,
shall be paid from the general assets of the Company or its Affiliate, as applicable. No provision
contained in this Program or the Plan and no action taken pursuant to the provisions of this
Program or the Plan shall create a trust of any kind or require the Company to maintain or set
aside any specific funds to pay benefits hereunder. To the extent a Participant acquires a right to
receive payments from the Company under the Program, such right shall be no greater than the right
of any unsecured general creditor of the Company.

     22. Headings. The descriptive headings of the Sections of this Program are inserted
for convenience of reference only and shall not constitute a part of this Program.

     23. Amendment or Termination of this Program. This Program may be modified, amended,
suspended or terminated by the Independent Subcommittee at any time. Any suspension or termination
shall automatically cause a Termination Date effective as of the date of approval or such other
date as specified by the Company. Any modification, amendment, suspension or termination shall
only be effective upon a writing issued by the Company, and a
Participant shall not offer evidence of any purported oral modifications or amendments to vary
or contradict the terms of this Program document.

 

 

ATTACHMENT A

Anadarko Petroleum Corporation

Berry Petroleum Co CL A

Bill Barrett Corp.

Cabot Oil & Gas Corporation

Canadian Natural Resources Limited

Chesapeake Energy Corporation

Cimarex Energy Co.

Comstock Resources, Inc.

Denbury Resources, Inc.

EOG Resources, Inc.

Equitable Resources, Inc.

Forest Oil Corporation

Newfield Exploration Company

Northwest Natural Gas Company

Pengrowth Energy Trust

Penn Virginia Corp.

Petrohawk Energy Corporation

Plains Exploration & Production Company

Pogo Producing Company

Provident Energy Trust

Quicksilver Resources Inc.

Range Resources Corporation

Southwestern Energy Company

St. Mary Land & Exploration Company

Stone Energy Corporation

The Houston Exploration Company

Ultra Petroleum Corp.

XTO Energy Inc.EX-10.2

 

Exhibit 10.2

CNX GAS CORPORATION

LONG-TERM INCENTIVE PROGRAM

[DATE]

[NAME AND ADDRESS]

Dear [NAME]:

Pursuant to the terms and conditions of the Company’s Equity Incentive Plan (as amended, the
“Plan”) and the Long-Term Incentive Program (the “Program”), on October 11, 2006, the
Independent Subcommittee of the Compensation Committee of the Board of the Directors of CNX Gas
Corporation (the “Independent Subcommittee”) awarded you ___Performance Share Units (the
“Award”). The terms and conditions of your Award are governed by the provisions of the Program
document attached hereto as Exhibit A, the terms of which are hereby incorporated by
reference. Capitalized terms not otherwise defined herein shall each have the meaning assigned to
them in the Program.

	 	 	 	 	 
	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

I hereby acknowledge and accept the Award described above subject to all of the terms and
conditions of the Program, including, without limitation, the forfeiture and covenant provisions
set forth in Sections 12, 13 and 14 of the Program, regardless of whether the Award ever results in
a cash distribution under the Program. I further acknowledge receipt of a copy of the Program
document and the Plan, and I agree to be bound by all the provisions of the Program and the Plan.

By signing below, I acknowledge that: (i) I have read and understand the Program, including,
without limitation, the provisions that require me to repay monies to the Company if I breach
Section 12 or 13 of the Program within six (6) months of distribution; (ii) the Performance Share
Units that have been awarded to me have no independent economic value, but rather are mere units of
measurement to be used in calculating benefits, if any, available under the Program; (iii) I agree
to accept as binding, conclusive and final all decisions or interpretations of the Independent
Subcommittee upon any questions arising under this Agreement, the Program or the Plan; and (iv) my
decision to participate in the Program is completely voluntary and done with full knowledge of its
terms. I further acknowledge and agree that in the event my employment with the Company and any
Affiliate shall terminate prior to the Payment Date or the CiC Payment Date, as applicable, for any
reason other than my death or Disability, the Performance Share Units awarded to me shall be
cancelled and forfeited, whether payable or not, without payment by the Company or any Affiliate.

	 	 	 	 	 	 	 
	Signature:

	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 
	 

	 	Name:

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