Document:

exv10w3

 

Exhibit 10.3

D.R. HORTON, INC.

Non-Qualified Stock Option Agreement

(Director — Term Vesting)

     WHEREAS,                      (hereinafter called the “Participant”) is a director of D.R. Horton,
Inc., a Delaware corporation (hereinafter called the “Company”);

     WHEREAS, the grant of Option Rights to the Participant effective                      (the “Date of
Grant”), and the execution of a Stock Option Agreement in the form hereof, has been duly authorized
by a resolution of the Board duly adopted on                     incorporated herein by reference; and

     WHEREAS, the option granted hereby is intended to be a non-qualified stock option and shall
not be treated as an “incentive stock option” within the meaning of that term under Section 422A of
the Code.

     NOW, THEREFORE, effective as of the Date of Grant the Company hereby grants to the Participant
a non-qualified option pursuant to the Company’s 2006 Stock Incentive Plan (the “Plan”) to purchase
                    shares
of Common Stock at the price of                                         
Dollars ($                    ) per share, and agrees
to cause certificates for any shares purchased hereunder to be delivered to the Participant upon
payment of the aggregate Option Price in full, all subject, however, to the terms and conditions
hereinafter set forth. Capitalized terms used in this Agreement that are not otherwise defined in
this Agreement are used as defined in the Plan.

 

 

     1. (A) This option (until terminated as hereinafter provided) shall become exercisable as
follows:

	 	 	 
	Time Period After	 	Number of Shares for
	Date of Grant	 	Which Option is Exercisable
	                                                             , 200X
	 	                    
	 
	 	 
	                                                             , 200X
	 	                    
	 
	 	 
	                                                             , 200X
	 	                    
	 
	 	 
	                                                             , 200X
	 	                    
	 
	 	 
	                                                             , 200X
	 	                    

          Except as otherwise provided in paragraph 3, this option shall be exercisable only if the
Participant shall continuously remain a director of the Company from the date hereof until this
option is exercised. For the purposes of this paragraph, leaves of absence approved by the Board
for illness, disability, military or governmental service, or other cause, shall be considered as
continuing to serve as a director of the Company. To the extent exercisable, this option may be
exercised in whole or in part from time to time.

          (B) Notwithstanding the provisions of subparagraph (A) of this paragraph 1, this option shall
be exercisable to the extent of 100% of the shares hereinabove specified upon the occurrence of any
Change in Control (as hereinafter defined) of the Company. For purposes of this Agreement, a
“Change in Control” means the occurrence of any of the following events:

(i) A merger, consolidation or reorganization of the Company into or with another
corporation or other legal person if the stockholders of the Company, immediately
before such merger, consolidation or reorganization, do not, immediately following
such merger, consolidation or reorganization, then own directly or indirectly, more
than 50% of the combined voting power of the then-outstanding voting securities of the
corporation or other legal person resulting from such merger, consolidation or

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reorganization in substantially the same proportion as their ownership of Voting
Securities (as hereinafter defined) immediately prior to such merger, consolidation or
reorganization;

(ii) The Company sells all or substantially all of its assets to another corporation
or other legal person, or there is a complete liquidation or dissolution of the
Company;

(iii) There is a report filed on Schedule 13D or Schedule 14D-1 (or any successor
schedule, form or report), each as promulgated pursuant to the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), disclosing that any person (as the term
“person” is used in Section 13(d)(3) or Section 14(d)(2) of the Exchange Act) has
become the beneficial owner (as the term “beneficial owner” is defined under Rule
13d-3 or any successor rule or regulation promulgated under the Exchange Act) of
securities representing 20% or more of the combined voting power of the
then-outstanding voting securities of the Company (“Voting Securities”) (computed in
accordance with the standards for the computation of total percentage ownership for
the purposes of Schedule 13D or Schedule 14D-1 (or any successor schedule, form or
report)); or

(iv) The Company files a report or proxy statement with the Securities and Exchange
Commission pursuant to the Exchange Act disclosing in response to Form 8-K or Schedule
14A (or any successor schedule, form or report or item therein) that a change in
control of the Company has occurred or will occur in the future pursuant to any
then-existing contract or transaction.

Notwithstanding the provisions set forth in (iii) or (iv) above, a “Change in Control” shall
not be deemed to have occurred for purposes of this Agreement solely
because (i) the Company, (ii)
any Subsidiary, or (iii) any employee stock ownership plan or any other employee benefit plan of
the Company or any Subsidiary either files or becomes obligated to file a report or a proxy
statement under or in response to Schedule 13D, Schedule 14D-1, Form 8-K or Schedule 14A (or any
successor schedule, form or report or item therein) under the Exchange Act disclosing beneficial
ownership by it of Voting Securities, whether in excess of 20% or otherwise, or because the
Company reports that a change in control of the Company has occurred or will occur in the future by
reason of such beneficial ownership. For purposes of calculating beneficial ownership pursuant

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 to
this subparagraph (B), any Voting Securities held by Donald R. Horton as of the date hereof or
received by Donald R. Horton in connection with any merger involving the Company and any affiliate
of the Company shall not be included in the calculation of beneficial ownership.

     (C) Notwithstanding the provisions of subparagraph (A) of this paragraph 1, this option shall
be exercisable to the extent of 100% of the shares hereinabove specified at the time the
Participant ceases to be a director of the Company upon the occurrence of the events described in
subparagraph (C) of paragraph 3.

     2. The Option Price shall be payable (a) in cash or by check acceptable to the Company, (b) by
transfer to the Company of shares of Common Stock which have been owned by the Participant for more
than six months prior to the date of exercise and which have an aggregate Market Value per Share on
the date of exercise equal to the aggregate Option Price, or (c) by a combination of such methods of
payment.

     3. This option shall terminate on the earliest of the following dates:

          (A) Three months after Participant is no longer a director of the Company for any reason
except as provided in Subparagraph (B) or (C) below;

          (B) Immediately upon the delivery to the Participant of notice of removal of the
Participant as a director of the Company;

          (C) Two years after the death or permanent disability of the Participant if the
Participant dies or becomes permanently disabled while a director of the Company; and

          (D) Ten years from the date on which this option was granted.
Except as otherwise provided in subparagraph (C) of paragraph 1, after the termination of the
Participant’s directorship this option shall be exercisable for the same number of shares for which

4

 

it was exercisable prior to such termination. In the event that the Participant’s directorship
terminates on the same date that a Change in Control of the Company occurs, the Change in Control
will be deemed to have occurred prior to the termination of the Participant’s directorship.

     4. This option is not transferable or exercisable except as provided in Paragraph 9 of the
Plan.

     5. If the Company shall be required to withhold any federal, state, local or foreign tax in
connection with the exercise of this option, it shall be a condition to such exercise that the
Participant pay or make provision satisfactory to the Company for payment of all such taxes.

     6. Upon each exercise of this option, the Company as promptly as practicable shall mail or
deliver to the Participant a stock certificate or certificates representing the shares then
purchased, and shall pay all stamp taxes payable in connection therewith. The issuance of such
shares and delivery of the certificate or certificates therefor shall, however, be subject to any
delay necessary to complete (a) the listing of such shares on any stock exchange upon which shares
of the same class are then listed, (b) such registration or qualification of such shares under any
state or federal law, rule or regulation as the Company may determine to be necessary or advisable,
and (c) the making of provision for the payment or withholding of any taxes required to be withheld
pursuant to any applicable law, in respect of the exercise of this option or the receipt of such
shares.

     EXECUTED at Fort Worth, Texas this ___day of                                                             , 200X.

	 	 	 	 	 	 	 
	 	 	D.R. HORTON, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 

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     The undersigned Participant hereby acknowledges receipt of an executed original of this
Non-Qualified Stock Option Agreement and accepts the stock option granted thereunder.

	 	 	 	 	 
	 	 	 
	 

	 	 	 	, Participant
	 

	 	 	 

6exv10wa

 

Exhibit 10.A

FIRST AMENDMENT TO CREDIT AGREEMENT

     THIS FIRST AMENDMENT (herein called this “Amendment”) dated as of March 27, 2006, is
among EL PASO EXPLORATION & PRODUCTION COMPANY (formerly El Paso Production Holding Company), EL
PASO PRODUCTION COMPANY, and EL PASO E&P COMPANY, L.P. (formerly El Paso Production Oil & Gas USA,
L.P.) (individually, a “Borrower” and collectively, the “Borrowers”), and FORTIS
CAPITAL CORP. (“Fortis”), as administrative agent for the Lenders (“Administrative
“Agent”) for the Lenders party to the Credit Agreement (as defined below).

W I T N E S S E T H :

     WHEREAS, El Paso Production Holding Company, El Paso Production Company, El Paso Energy Raton
Corporation, El Paso Production GOM Inc. (collectively, the “Original Borrowers”), the
Administrative Agent and the Lenders entered into that certain Amended and Restated Credit
Agreement dated as of October 19, 2005 (the “Credit Agreement”), for the purposes and
consideration therein expressed, pursuant to which the Lenders became obligated to make loans and
issue letters of credit to the Borrowers as therein provided;

     WHEREAS, pursuant to a reorganization plan implemented by El Paso Corporation on or about
December 31, 2005, (i) the outstanding equity interests of El Paso Production Oil & Gas Company, El
Paso Production Oil & Gas Holdings, Inc., El Paso Production Resale Company, El Paso Production Oil
& Gas USA, L.P., El Paso Energy Oil Transmission, L.L.C. and El Paso Production Oil & Gas
Gathering, L.P. were transferred, directly or indirectly, to El Paso Production Holding Company,
(ii) El Paso Production GOM Inc. and El Paso Energy Raton Corporation merged into El Paso
Production Oil & Gas USA, L.P., which thereby became a Borrower under the Credit Agreement, (iii)
the name of El Paso Production Holding Company was changed to El Paso Exploration & Production
Company, (iv) the name of El Paso Production Oil & Gas USA, L.P. was changed to El Paso E&P
Company, L.P. and (v) the names of certain of the Guarantors were changed;

     WHEREAS, the Borrowers have requested that the Administrative Agent and the Lenders amend the
Credit Agreement as set forth herein; and

     WHEREAS, the Administrative Agent and the Lenders are willing to amend the Credit Agreement on
the terms and subject to the conditions set forth herein;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
contained herein and in the Credit Agreement, in consideration of the loans and letters of credit
which may hereafter be made or issued by the Lenders to the Borrowers, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto do hereby agree as follows:

 

 

     1. Terms Defined in the Credit Agreement. Unless the context otherwise requires or
unless otherwise expressly defined herein, the terms defined in the Credit Agreement shall have the
same meanings whenever used in this Amendment.

     2. Amendments. The Credit Agreement is hereby amended as set forth below in this
Section 2:

     (a) Section 1.1 of the Credit Agreement is hereby amended by deleting the defined term
“EPPHC”- El Paso Production Holding Company.

     (b) Section 1.1 of the Credit Agreement is hereby amended by adding the defined term
“EPEP”- El Paso Exploration & Production Company.

     (c) The Credit Agreement is hereby amended by deleting each reference to the term
“EPPHC” and replacing it with the term “EPEP”.

     (d) Section 8.7(c) of the Credit Agreement is hereby amended to read as follows:

     ”(c) provided no Default, Event of Default, Borrowing Base Deficiency
or Collateral Value Deficiency shall have occurred and be continuing, EPEP
may declare and pay dividends or make other distributions of property with
respect to any fiscal year (but no later than (A) December 31, 2006, with
respect to the fiscal year ended December 31, 2005, and (B) 120 days after
the end of each other fiscal year) in an amount that does not exceed the sum
of (i) the Available Distribution Amount, plus (ii) the net proceeds of any
equity offering or contribution of equity, in each case received by a Loan
Party during such fiscal year, plus (iii) 100% of Free Cash Flow of the Loan
Parties accrued during such fiscal year, minus (iv) Free Cash Flow and
capital contributions used to repay Indebtedness pursuant to Section
8.9(z).”

     (e) Section 8.8(h) of the Credit Agreement is hereby amended to read as follows:

     ”(h) provided no Default, Event of Default, Borrowing Base Deficiency,
or Collateral Value Deficiency shall have occurred and is continuing,
additional loans or advances made on a revolving basis to El Paso
Corporation under the Cash Management Program up to a maximum outstanding
amount of $200,000,000; and”.

     (f) Section 8.9(y) of the Credit Agreement is hereby amended to read as follows:

     ”(y) provided no Default, Event of Default, Borrowing Base Deficiency
or Collateral Value Deficiency shall have occurred and be continuing, pay
principal with respect to and interest on Indebtedness owed to El Paso
Corporation; provided, however, that such Indebtedness

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was incurred on a revolving basis and the amount of such revolving
Indebtedness outstanding at any time does not exceed $200,000,000; and”.

     3. Effective Date. This Amendment shall become effective (the “Effective
Date”) when the Lenders shall have received, at the Administrative Agent’s office:

     (i) A counterpart of this Amendment executed and delivered by Borrowers;

     (ii) A confirmation of guaranty from the Guarantors; and

     (iii) A certificate of a duly authorized officer of each Borrower to the effect
that all of the representations and warranties set forth in Section 4 hereof are
true and correct at and as of the time of such effectiveness and that there exists
no Default or Event of Default under the Credit Agreement.

     4. Representations and Warranties of Borrowers. In order to induce the Lenders to
enter into this Amendment, each of the Borrowers represents and warrants to Lenders that:

     (i) The representations and warranties contained in Section 5 of the Credit
Agreement are true and correct at and as of the time of the effectiveness hereof.

     (ii) Such Borrower is authorized to execute and deliver this Amendment and such
Borrower is and will continue to be duly authorized to borrow and to perform its
obligations under the Credit Agreement. Such Borrower has duly taken all action
necessary to authorize the execution and delivery of this Amendment and to authorize
the performance of the obligations of such Borrower hereunder.

     (iii) The execution and delivery by such Borrower of this Amendment, the
performance by such Borrower of its obligations hereunder and the consummation of
the transactions contemplated hereby do not and will not conflict with any
provisions of law, statute, rule or regulation or of the certificate of
incorporation and bylaws or certificate of limited partnership and agreement of
limited partnership, as applicable, of such Borrower, or of any material agreement,
judgment, license, order or permit applicable to or binding upon such Borrower, or
result in the creation of any lien, charge or encumbrance upon any assets or
properties of such Borrower. Except for those which have been duly obtained, no
consent, approval, authorization or order of any court or governmental authority or
third party is required in connection with the execution and delivery by such
Borrower of this Amendment or to consummate the transactions contemplated hereby.

     (iv) When duly executed and delivered, each of this Amendment and the Credit
Agreement will be a legal and binding instrument and agreement of such Borrower,
enforceable in accordance with their terms, except as limited by

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bankruptcy, insolvency and similar laws applying to creditors’ rights generally
and by principles of equity applying to creditors’ rights generally.

     5. Ratification of Agreements. The Credit Agreement is hereby ratified and confirmed
in all respects. The execution, delivery and effectiveness of this Amendment shall not, except as
expressly provided herein, operate as a waiver of any right, power or remedy of the Lenders under
the Credit Agreement or any other Loan Document nor constitute a waiver of any provision of the
Credit Agreement or any other Loan Document.

     6. Survival of Agreements. All representations, warranties, covenants and agreements
of the Borrowers herein shall survive the execution and delivery of this Amendment and the
performance hereof, and shall further survive until all of the Obligations are paid in full. All
representations, warranties, acknowledgements and agreements contained in Section 5 of the Credit
Agreement are hereby reconfirmed on and as of the date hereof. All statements and agreements
contained in any certificate or instrument delivered by any Borrower hereunder or under the Credit
Agreement to Lenders shall be deemed to constitute representations and warranties by, or agreements
and covenants of, such Borrower under this Amendment and under the Credit Agreement.

     7. Loan Documents. This Amendment is a Loan Document, and all provisions in the
Credit Agreement pertaining to Loan Documents apply hereto.

     8. Governing Law. This Amendment shall be governed by and construed in accordance
with the laws of the State of New York and any applicable laws of the United States of America in
all respects, including construction, validity and performance.

     9. Counterparts. This Amendment may be separately executed in counterparts and by the
different parties hereto in separate counterparts, each of which when so executed shall be deemed
to constitute one and the same Amendment.

     10. THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENT OF THE PARTIES.

[The Remainder of this Page Intentionally Left Blank]

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     IN WITNESS WHEREOF, this Amendment is executed as of the date first above written.

	 	 	 	 	 
	 	EL PASO EXPLORATION & PRODUCTION COMPANY

 	 
	 	By:  	/s/ Gene T. Waguespack
 	 
	 	 	Name:  	Gene T. Waguespack 	 
	 	 	Title:  	Senior Vice President, Treasurer and
Controller 	 
	 
	 	EL PASO PRODUCTION COMPANY

 	 
	 	By:  	/s/ Gene T. Waguespack
 	 
	 	 	Name:  	Gene T. Waguespack 	 
	 	 	Title:  	Senior Vice President, Treasurer and
Controller 	 
	 
	 	EL PASO E&P COMPANY, L.P.

By:  El Paso Production Oil & Gas Company, its general partner

 	 
	 	By:  	/s/ Gene T. Waguespack
 	 
	 	 	Name:  	Gene T. Waguespack 	 
	 	 	Title:  	Senior Vice President, Treasurer and
Controller 	 

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	 	FORTIS CAPITAL CORP.,

as Administrative Agent, Arranger, Bookrunner,

Issuing Lender and as a Lender

 	 
	 	By:  	/s/ Trond Rokholt
 	 
	 	 	Name:  	Trond Rokholt 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                                              /s/ Rainer R. Kraft
 	 
	 	 	Name:  	Rainer R. Kraft 	 
	 	 	Title:  	Senior Vice President 	 
	 

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