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Exhibit 10.35    
    

 
 

Forest Oil Corporation    
    
    Annual Incentive Plan    
    
    2008    
    

  

Forest Oil Corporation

2008 Annual Incentive Plan  

 Summary  

Plan Objectives  

        The Annual Incentive Plan (the "Plan") has been designed to meet the following objectives: 

	•
	Provide
an annual incentive plan framework that is performance-driven and focused on objectives that are critical to the Company's success.

	•
	Offer
competitive cash compensation opportunities to all key employees.

	•
	Reward
outstanding achievement. 

Basic Plan Concept  

        The Plan generally provides annual incentive awards, which will be determined primarily on the basis of the Company's consolidated results on selected financial,
operating and other performance measures. However, business unit or department performance and individual performance will also be considered in determining the actual participant award payout.
Therefore, the Company shall have the flexibility to adjust individual awards to reflect individual or team performance. 

Performance Measures and Weights  

        Each year the Company will establish the threshold, target and outstanding performance levels on each performance measure and its appropriate weighting. These
performance measures and their weighting will be reviewed (and modified, if appropriate) in light of changing Company priorities and strategic objectives. 

        The
recommended 2008 Company performance measures and their respective weightings are described in detail in Attachment I. 

Plan Administration  

        The Plan will be administered by the Compensation Committee ("Committee") of the Board of Directors and the President and Chief Executive Officer ("CEO") (for all
positions except his own). Certain elements of the Plan administration will be delegated to the senior Human Resources executive of the Company. The Executive Vice President and Chief Financial
Officer will verify the performance calculation for the performance and operating measures in consultation with the Senior Vice President, Business Development & Engineering, who shall be
responsible for the estimation of the Company's oil and gas reserves. 

        Actual
performance goals, standards, award determinations and modifications to the Plan design must be approved by the Committee. 

	Measure
 
	 	Weighting (Example)
	 
	Total Shareholder Return	 	15	%
	Cash Cost	 	15	%
	Acquisitions	 	20	%
	Production	 	30	%
	Rate of Return on Capital Investments	 	20	%
	 	 	
	 
	Total Financial and Operating Objectives	 	100	%

        Once
the total bonus pool has been established following the performance calculations, the CEO shall have the discretion to distribute bonus monies within business units and the
corporate group or to
move monies from one group to another, and to allocate incentive monies to individuals, based on his assessment (with advice of other senior managers) as to individual or group performance. 

Targets  

        Targets for the total Plan will be set consistent with the following: 

	•
	Threshold—Minimum
level at which payout occurs. The threshold percentage is 25% of the target award percentage.

	•
	Target—Level
at which the participant receives the target award percentage.

	•
	Outstanding—Level
at which the participant receives 200% of the target award percentage. 

        Completion
percentages between Threshold, Target and Outstanding will be determined, with the exception of Total Shareholder Return, by interpolation. Completion for results above
Outstanding will be directly proportional to the change in completion between Target and Outstanding. 

        The
Completion Percentage for Total Shareholder Return is defined in the section describing the Total Shareholder Return measure. Targets shall be adjusted for material changes made
during the year to the business plan or scope thereof, or to the capital expenditure budget. 

Maximum Completion  

        Although there will be no limit on completion of individual financial measures, completion for the total Plan will be limited to 200% of target. 

Performance Levels  

        Performance levels will be set for individual measures. Results below the Threshold will equate to a zero completion percentage. 

        A
minimum 25% completion threshold is required for the total Plan. 

Completion Calculation  

        Completion for total financial measures will be the sum of the weighted completion percentage for each individual measure. Completion for each individual measure
will be equal to the completion percentage of each measure times the weighting for that measure. 

Property Sales  

        In computing results, non-budgeted property sales are not to be considered. To avoid non-budgeted property sales from affecting results,
they will be incorporated into performance measures as though they had been budgeted. 

Participants  

        The CEO shall determine which employees are to be participants in the Plan. If a participant's employment with the Company is terminated for any reason  prior to
payment, no bonus award will be paid. 

        The
target award percentage for the CEO is established by the Committee. Target award percentages for Company officers are subject to the approval of the Committee. The CEO is authorized
to establish and adjust at his discretion the target award percentages for non-officer Plan participants. Plan participants who change positions and/or have their individual target
incentive levels changed during the Plan year will have their award prorated accordingly. All awards paid will be rounded to the nearest $100. 

        Incentive
compensation awards will be calculated based upon the participant's base salary in effect at the end of the Plan year or earned salary if the participant was a new hire during
the year. 

Board of Directors' Discretion  

        The granting of any and all incentive compensation awards is at the discretion of the Forest Oil Corporation Board of Directors. 

Forest Oil Corporation

Financial Measure

Total Shareholder Return  

Objective  

        Measure Total Return to Shareholders relative to a peer group. 

Definition  

        Total Return to Shareholders equals year-end share price plus common dividends per share paid (plus capital returned to shareholders through share
repurchase) during the Plan year minus the beginning share price divided by beginning share price. 

Share Price  

        Year-end share price shall be defined as the closing price on the last trading day in December of each year. The beginning share price shall be
defined as the closing price on the last trading day in December of the prior year (2007). 

        In
the event either the Company or a member of the peer group is acquired for cash, the year-end share price shall be defined as the cash purchase price per share. If a
member of the peer group is acquired for stock, the year-end share price shall be defined as the exchange ratio multiplied by the closing price of the acquirer on the last trading day of
the year. In an acquisition involving both cash and stock, each component of the purchase price will be measured as described above to calculate a pro forma year-end stock price. 

Peer Group  

        The peer group shall comprise companies selected by the Committee that reflect the size, operational complexities and business challenges faced by Forest Oil. 

Completion Percentage  

        The Completion Percentage will be determined based on the Company's ranking among the selected peer companies with regard to Total Shareholder Return as detailed
in Attachment 1A. 

Forest Oil Corporation

Financial Measure

Cash Cost  

Objective  

        Measure cash cost on an annual basis. 

Definition  

        Corporate:    The sum of direct operating expense and expensed workovers, but excluding ad valorem taxes, transportation expense and total expensed G&A
for the Company, divided by total production for the Company measured in MCFE. 

        Business
Unit:    The sum of direct operating expense and expensed workovers, but excluding ad valorem taxes, transportation expense, allocated corporate G&A expense for the
business unit, and total expensed G&A administrative costs for the Company, divided by production for the business unit measured in MCFE. 

        Cash
Cost excludes production severance taxes. Additionally, the calculation of Cash Cost for the Canadian business unit shall be calculated at the Plan exchange rate ignoring any
variance between the actual exchange rate and the exchange rate assumed in the Plan. 

Targets  

        Measured against an approved Annual Plan with: 

	•
	Threshold
equal to achievement of 105% of Business Plan objective (Attachment 1B)

	•
	Target
equal to achievement of 100% of Business Plan objective (Attachment 1B)

	•
	Outstanding
equal to achievement of 90% of Business Plan objective (Attachment 1B) 

Forest Oil Corporation

Financial Measure

Acquisitions  

Objective  

        Measure on a yearly basis the amount of oil and gas, converted to Bcfe, acquired by the Company. 

Definition  

        The target objective for 2008 Acquisitions is to replace the 2008 Production target. 

        Acquisitions
are calculated by adding the volumetric amount of estimated proved reserves acquired by any method by the Company in 2008. 

Targets  

	•
	Threshold
is an amount shown on Attachment 1C.

	•
	Target
is an amount shown on Attachment 1C.

	•
	Outstanding
is an amount shown on Attachment 1C. 

Forest Oil Corporation

Operating Measure

Production  

Objective  

        Measure net production on an annual basis. 

Definition  

        Net production equals total net production (after royalty and other burdens) equal to that set forth in the annual Business Plan. 

        Should
a business unit overspend budgeted Capex significantly, the Production target will either be proportionately adjusted or the target level will become the threshold for payout
under this measure. 

        The
calculation of net production volumes for the Canadian business unit shall be calculated as if Plan oil and gas prices were experienced, with no volume adjustments being made for
higher or lower prices. 

Targets  

        Measured against an approved Annual Plan with: 

	•
	Threshold
equal to achievement of 95% of Business Plan objective (Attachment 1D).

	•
	Target
equal to achievement of 100% of Business Plan objective (Attachment 1D).

	•
	Outstanding
equal to achievement of 110% of Business Plan objective (Attachment 1D). 

Forest Oil Corporation

Financial Measure

Rate-of-Return on Capital Investments  

Objective  

        Measure on a yearly basis, the pre-tax rate-of-return ("ROR") on all capital projects. 

Definition  

        Pre-tax rate-of-return on all capital projects during the year including drilling projects, acquisitions, recompletions, land
lease, seismic and capitalized G&A. The price assumptions to be utilized will be those utilized for the Investment Results Report ("IRR") and any prices hedged (for the associated volumes) in direct
connection with an acquisition. In evaluating the accomplishment of this objective, the Compensation Committee will take into account all revisions to estimated proved reserves made in 2008. 

Targets  

        Measured against an approved annual Plan with: 

	•
	Threshold
is equal to the ROR indicated on Attachment 1E.

	•
	Target
is equal to the ROR indicated on Attachment 1E.

	•
	Outstanding
is equal to the ROR indicated on Attachment 1E. 

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Exhibit 10.35

Forest Oil Corporation Annual Incentive Plan 2008Exhibit 10.2.3

 

FORM OF

AMENDED
AND RESTATED

COMMSCOPE, INC.

1997 LONG-TERM INCENTIVE PLAN

DIRECTOR’S NONQUALIFIED STOCK OPTION AGREEMENT

 

THIS
AGREEMENT, made as of the      day of                 ,
2002 (the “Grant Date”), between CommScope, Inc., a Delaware corporation
(the “Company”), and                     
(the “Grantee”).

 

WHEREAS,
the Company has adopted the Amended and Restated CommScope, Inc. 1997 Long-Term
Incentive Plan (the “Plan”) in order to provide an additional incentive to
certain employees and directors of the Company and its Subsidiaries; and

 

WHEREAS,
the Committee responsible for administration of the Plan has determined to
grant an option to the Grantee as provided herein;

 

NOW,
THEREFORE, the parties hereto agree as follows:

 

1.     Grant of Option.

 

1.1                The Company hereby grants
to the Grantee the right and option (the “Option”) to purchase all or any part
of an aggregate of                       
whole shares of Stock subject to, and in accordance with, the terms and
conditions set forth in this Agreement.

 

1.2                The Option is not
intended to qualify as an Incentive Stock Option.

 

1.3                This Agreement shall be
construed in accordance and consistent with, and subject to, the provisions of
the Plan (the provisions of which are incorporated herein by reference); and,
except as otherwise expressly set forth herein, the capitalized terms used in
this Agreement shall have the same definitions as set forth in the Plan.

 

2.     Purchase Price.

 

The
price at which the Grantee shall be entitled to purchase shares of Stock upon
the exercise of the Option shall be $          
per share of Stock.

 

3.     Duration of Option.

 

The
Option shall be exercisable to the extent and in the manner provided herein for
a period of ten (10) years from the Grant Date (the “Exercise Term”); provided,
however, that the Option may be earlier terminated as provided in Section 6
hereof.

 

 

4.     Vesting and Exercisability of Option.

 

Unless
otherwise provided in this Agreement or the Plan, the Option shall entitle the
Grantee to purchase, in whole at any time or in part from time to time,
thirty-three and one-third percent (33-1/3%) of the total number of shares of
Stock covered by the Option after the expiration of one (1) year from the
Grant Date, an additional thirty-three and one-third percent (33-1/3%) of the
total number of shares of Stock covered by the Option after the second
anniversary of the Grant Date, and the remainder of the number of shares of
Stock subject to the Option after the third anniversary of the Grant Date, and
each such right of purchase shall be cumulative and shall continue, unless
sooner exercised as herein provided, during the remaining period of the
Exercise Term.  Any fractional number of
shares of Stock resulting from the application of the percentages set forth in
this Section 4 shall be rounded to the next higher whole number of shares
of Stock.

 

5.     Manner of Exercise and Payment.

 

5.1                Subject to the terms and
conditions of this Agreement and the Plan, the Option may be exercised by
delivery of written notice to the Company, at its principal executive
office.  Such notice shall state that the
Grantee is electing to exercise the Option and the number of shares of Stock in
respect of which the Option is being exercised and shall be signed by the
person or persons exercising the Option. 
If requested by the Committee, such person or persons shall (i) deliver
this Agreement to the Secretary of the Company who shall endorse on this
Agreement a notation of such exercise and (ii) provide satisfactory proof
as to the right of such person or persons to exercise the Option.

 

5.2                The notice of exercise
described in Section 5.1 shall be accompanied by the full purchase price
for the shares of Stock in respect of which the Option is being exercised, in
cash or by check or, if indicated in the notice, such payment shall follow by
check from a registered broker acting as agent on behalf of the Grantee.  However, at the discretion of the Committee
appointed to administer the Plan, the Grantee may pay the exercise price in part
or in full by transferring to the 
Company shares of restricted or unrestricted Stock owned by the Grantee
prior to the exercise of the Option having a Fair Market Value on the day
preceding the date of exercise equal to the cash amount for which such shares
are substituted.

 

5.3                Upon receipt of notice of
exercise and full payment for the shares of Stock in respect of which the
Option is being exercised, the Company shall, subject to this Agreement and the
Plan, take such action as may be necessary to effect the transfer to the
Grantee of the number of shares of Stock as to which such exercise was
effective.

 

5.4                The Grantee shall not be deemed to be the
holder of, or to have any of the rights of a holder with respect to any shares
of Stock subject to the Option until (i) the Option shall have been
exercised pursuant to the terms of this Agreement and the Grantee shall have
paid the full purchase price for the number of shares of Stock in respect of
which the Option was exercised, (ii) the Company shall have issued and
delivered the shares of Stock to the 

 

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Grantee, and (iii) the
Grantee’s name shall have been entered as a stockholder of record on the books
of the Company, whereupon the Grantee shall have full voting and other
ownership rights with respect to such shares of Stock.

 

6.     Ceasing to Serve as Director.

 

6.1                Death, Disability or
Retirement.  In the event the
Grantee ceases to serve as a director for any reason other as a result of his
death, Disability or his voluntary retirement after age 55 (“Retirement”), this
Option shall be exercisable during its remaining term, to the extent that the
Option or portion thereof was exercisable on the date the Grantee ceased to be
a director.  In the event the Grantee ceases to serve as a director
of the Company by reason of the Grantee’s death, Disability or Retirement, any
portion of the Option that is not yet vested and exercisable on the date of the
termination of service, shall become immediately vested and fully exercisable
on such date, and shall remain exercisable during its remaining term of the
Option, by the Grantee or the Grantee’s legatee or legatees under his will, or
by his personal representatives or distributees, as applicable.

 

6.2                No Extension of Exercise
Term.  Notwithstanding the terms of Section 6.1,
in no event may the Option be exercised by anyone after the expiration of the
Exercise Term.

 

7.     Effect of Change of Control.

 

Notwithstanding
anything contained in this Agreement to the contrary, in the event of a Change
of Control the Option shall become immediately vested and fully exercisable.

 

8.     Non-transferability.

 

The
Option shall not be assignable or transferable other than by will or the laws
of descent and distribution or pursuant to a qualified domestic relations order
(within the meaning of Rule 16a-12 promulgated under the Exchange
Act).  During the lifetime of the
Grantee, the Option shall be exercisable only by the Grantee, his or her legal
guardian or legal representatives or a bankruptcy trustee.  Notwithstanding the foregoing, the Option may be
transferred to members of the Grantee’s immediate family, to trusts solely for
the benefit of such immediate family members and to partnerships in which such
family members and/or trusts are the only partners, and for purposes of this
Agreement and the Plan, a transferee of an Option shall be deemed to be the
Grantee.  For this purpose, immediate
family means the Grantee’s spouse, parents, children, stepchildren and
grandchildren and the spouses of such parents, children, stepchildren and
grandchildren.

 

9.     Adjustments.

 

In
the event of a Change in Capitalization, the Committee may make appropriate
adjustments to the number and class of shares of Stock or other stock or
securities subject to the Option and the purchase price for such shares or
other stock or securities.  The
Committee’s 

 

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adjustment
shall be made in accordance with the provisions of Article 19 of the Plan
and shall be final, binding and conclusive for all purposes of the Plan
and this Agreement.

 

10.     Effect of Certain Transactions.

 

Subject
to Section 7 hereof, upon the effective date of the liquidation,
dissolution, merger or consolidation of the Company (in each case, a “Transaction”),
the Option shall continue in effect in accordance with its terms, except that
following a Transaction either (a) the Option shall be treated as provided
for in the plan or agreement entered into in connection with the Transaction
(the “Transaction Agreement”) or (b) if not so provided in the Transaction
Agreement, the Grantee shall be entitled to receive in respect of all shares of
Stock subject to the Option, upon exercise of the Option, the same number and
kind of stock, securities, cash, property or other consideration that each
holder of shares of Stock was entitled to receive in the Transaction.

 

11.     Grantee Bound by the Plan.

 

The
Grantee hereby acknowledges receipt of a copy of the Plan and agrees to be
bound by all the terms and provisions thereof.

 

12.     Modification of Agreement.

 

This
Agreement may be modified, amended, suspended or terminated, and any terms or
conditions may be waived, but only by a written instrument executed by the
parties hereto.  No waiver by
either party hereto of any breach by the other party hereto of any provision of
this Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions at the time or at any prior or subsequent
time.

 

13.     Severability.

 

Should
any provision of this Agreement be held by a court of competent jurisdiction to
be unenforceable or invalid for any reason, the remaining provisions of this
Agreement shall not be affected by such holding and shall continue in full
force in accordance with their terms.

 

14.     Governing Law.

 

The
validity, interpretation, construction and performance of this Agreement shall
be governed by the laws of the State of Delaware without giving effect to the
conflicts of laws principles thereof.

 

15.     Successors in Interest.

 

This
Agreement shall inure to the benefit of and be binding upon any successor to
the Company.  This Agreement shall inure
to the benefit of the Grantee’s legal representatives.  

 

4

 

All
obligations imposed upon the Grantee and all rights granted to the Company
under this Agreement shall be final, binding and conclusive upon the Grantee’s
beneficiaries, heirs, executors, administrators and successors.

 

16.     Resolution of Disputes.

 

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

 

17.     Consent to Jurisdiction.

 

Each of the
parties hereby (a) agrees to personal jurisdiction in any suit, proceeding
or action at law or in equity (hereinafter referred to as an “Action”) arising
out of or relating to the Plan or this Agreement brought in any state or
federal court in the State of North Carolina having subject matter
jurisdiction, (b) agrees that such jurisdiction shall be exclusive and
that no Action arising out of or relating to the Plan or this Agreement shall
be brought in any state or federal court other than that in the State of North
Carolina, (c) waives any objection which the party may have now or
hereafter to the laying of the venue of any such Action and (d) waives any
claim or defense of inconvenient forum.

 

 

	
   

  	
  COMMSCOPE,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Frank
  B. Wyatt, II

  
	
   

  	
  Title:

  	
  Senior
  Vice President, General Counsel and

  Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRANTEE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Print
  Name:

  	
   

  
				

 

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