Document:

Continuity Agreement

Exhibit
10.21

CONTINUITY
AGREEMENT

This
Agreement (the "Agreement") is dated as of September 3, 2002 by and between
Kerr-McGee Corporation, a Delaware corporation (the "Company"), and David A.
Hager (the "Executive").

WHEREAS,
the Company's Board of Directors considers the continued services of key
executives of the Company to be in the best interests of the Company and its
stockholders; and

WHEREAS,
the Company's Board of Directors desires to assure, and has determined that it
is appropriate and in the best interests of the Company and its stockholders to
reinforce and encourage the continued attention and dedication of key executives
of the Company to their duties of employment without personal distraction or
conflict of interest in circumstances which could arise from the occurrence of a
change in control of the Company; and

WHEREAS,
the Company's Board of Directors has authorized the Company to enter into
continuity agreements with those key executives of the Company and any of its
respective subsidiaries (all of such entities, together with the Company, are
hereinafter referred to as an "Employer"), such agreements to set forth the
severance compensation which the Company agrees under certain circumstances to
pay such executives; and

WHEREAS,
the Executive is a key executive of an Employer and has been designated as an
executive to be offered such a continuity compensation agreement with the
Company.

NOW,
THEREFORE, in consideration of the premises and the mutual covenants and
agreements contained herein and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Company and the
Executive agree as follows:

1. Term. This
Agreement shall become effective on the date hereof (the "Effective Date") and
remain in effect until the third anniversary thereof; provided,
however, that
this Agreement shall automatically renew for an additional year on each
successive anniversary of the Effective Date, unless an Employer informs the
Executive, in writing, at least 180 days prior to the renewal date, that this
Agreement shall not be renewed. The foregoing shall constitute the “Term” of
this Agreement for purposes hereof.

2. Change
in Control. No
compensation or other benefit pursuant to Section 4 hereof shall be payable
under this Agreement unless and until either (i) a Change in Control of the
Company (as hereinafter defined) shall have occurred while the Executive is
employed by an Employer and the Executive's employment by an Employer thereafter
shall have terminated in accordance with Section 3 hereof or (ii) the
Executive’s employment by an Employer shall have terminated in accordance with
Section 3(a)(ii) hereof prior to the occurrence of the Change in Control. For
purposes of this Agreement, a "Change in Control" shall be deemed to have
occurred when, during the Term of this Agreement: 

 

        (a) any
person ("Person") as defined in Section 3(a)(9) of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"), and as used in Section 13(d) and 14(d)
thereof, including a "group" as defined in Section 13(d) of the Exchange Act but
excluding the Company and any subsidiary and any employee benefit plan sponsored
or maintained by the Company or any subsidiary (including any trustee of such
plan acting as trustee), directly or indirectly, becomes the "beneficial owner"
(as defined in Rule 13d-3 under the Exchange Act), of securities of the Company
representing 25% or more of the combined voting power of the Company's then
outstanding securities (other than indirectly as a result of the Company’s
redemption of its securities); or

(b) the
consummation of any merger or other business combination of the Company, sale of
50% or more of the Company's assets, liquidation or dissolution of the Company
or combination of the foregoing transactions (the "Transactions") other than a
Transaction immediately following which the shareholders of the Company and any
trustee or fiduciary of any Company employee benefit plan immediately prior to
the Transaction own at least 60% of the voting power, directly or indirectly, of
(A) the surviving corporation in any such merger or other business combination;
(B) the purchaser of or successor to the Company's assets; (C) both the
surviving corporation and the purchaser in the event of any combination of
Transactions; or (D) the parent company owning 100% of such surviving
corporation, purchaser or both the surviving corporation and the purchaser, as
the case may be; or

 

(c) within
any twenty-four month period, the persons who were directors immediately before
the beginning of such period (the "Incumbent Directors") shall cease (for any
reason other than death) to constitute at least a majority of the Board or the
board of directors of a successor to the Company. For this purpose, any director
who was not a director at the beginning of such period shall be deemed to be an
Incumbent Director if such director was elected to the Board by, or on the
recommendation of or with the approval of, at least two-thirds of the directors
who then qualified as Incumbent Directors (so long as such director was not
nominated by a person who commenced or threatened to commence an election
contest or proxy solicitation by or on behalf of a Person (other than the Board)
or who has entered into an agreement to effect a Change in Control or expressed
an intention to cause such a Change in Control); or

(d) a
majority of the members of the Board of Directors in office immediately prior to
a proposed transaction determine by a written resolution that such proposed
transaction, if taken, will be deemed a Change in Control and such proposed
transaction is consummated.

3. Termination
of Employment; Definitions.

(a)  Termination
without Cause by the Company or for Good Reason by the Executive.

(i) The
Executive shall be entitled to the compensation provided for in Section 4
hereof, if within two years after a Change in Control, the Executive's
employment by an Employer shall be terminated (A) by an Employer for any reason
other than (I) the Executive's Disability or Retirement, (II) the Executive's
death or (III) for Cause, or (B) by the Executive with Good Reason (all terms
are as hereinafter defined), unless such termination occurs with the Executive’s
prior written consent expressly waiving the rights provided
hereunder.

(ii) In
addition, the Executive shall be entitled to the compensation provided for in
Section 4 hereof if, (A) in the event that an agreement is signed which, if
consummated, would result in a Change of Control and, within 12 months
thereafter, the Executive is terminated without Cause by the Company (other than
on account of Executive’s Death or Disability) or terminates employment with
Good Reason prior to the Change in Control, (B) such termination is at the
request or instigation of the acquiror or merger partner or otherwise in
connection with the anticipated Change in Control, and (C) within said 12 month
period, such Change in Control actually occurs.

(b) Disability. For
purposes of this Agreement, "Disability" shall mean the Executive's absence from
the full-time performance of the Executive's duties (as such duties existed
immediately prior to such absence) for 180 consecutive business days, when the
Executive is disabled as a result of incapacity due to physical or mental
illness.

(c) Retirement. For
purposes of this Agreement, "Retirement" shall mean the Executive's voluntary
termination of employment pursuant to late, normal or early retirement under a
pension plan sponsored by an Employer, as defined in such plan, but only if such
retirement occurs prior to a termination by an Employer without Cause or by the
Executive for Good Reason.

(d) Cause. For
purposes of this Agreement, "Cause" shall mean:

(i)
 the
willful and continued failure of the Executive to perform substantially all of
his or her duties with an Employer (other than any such failure resulting from
incapacity due to physical or mental illness), after a written demand for
substantial performance is delivered to such Executive by the Board of Directors
(the "Board") of the Company which specifically identifies the manner in which
the Board believes that the Executive has not substantially performed his or her
duties;

(ii)
 the
willful engaging by the Executive in gross misconduct which is materially and
demonstrably injurious to the Company or any Employer; or 

 

                (iii)  the
conviction of, or plea of guilty or nolo contendere to, a
felony.

Termination
of the Executive for Cause shall be made by delivery to the Executive of a copy
of a resolution duly adopted by the affirmative vote of not less than a
three-fourths majority of the non-employee Directors of the Company or of the
ultimate parent of the entity which caused the Change in Control (if the Company
has become a subsidiary) at a meeting of such Directors called and held for such
purpose, after 30 days prior written notice to the Executive specifying the
basis for such termination and the particulars thereof and a reasonable
opportunity for the Executive to cure or otherwise resolve the behavior in
question prior to such meeting, finding that in the reasonable judgment of such
Directors, the conduct or event set forth in any of clauses (i) through (iii)
above has occurred and that such occurrence warrants the Executive's
termination.

(e) Good
Reason. For
purposes of this Agreement, "Good Reason" shall mean the occurrence, within the
Term of this Agreement, of any of the following without the Executive's written
consent expressly waiving the rights provided hereunder:

(i)
 any
material and adverse diminution in the Executive's duties or responsibilities
with the Company (or any affiliate thereof) from those in effect immediately
prior to the Change in Control; 

(ii)
 any
reduction in the Executive's annual base salary or any adverse change in bonus
opportunity or participation in cash bonus programs in effect immediately prior
to the Change in Control; 

(iii)
 any
requirement that Executive be based at a location more than 35 miles from the
location at which the Executive was based immediately prior to the Change in
Control (or a substantial increase in the amount of travel Executive is required
to do because of a relocation of the executive offices); 

(iv)
 any
failure by the Company to obtain from any successor to the Company an agreement
reasonably satisfactory to the Executive to assume and perform this Agreement,
as contemplated by Section 10(a) hereof; or

 

(v)
 any
amendment, reduction or termination of any benefit plan, program or arrangement,
which has the effect of causing the Executive to have benefits which are not
substantially similar, in the aggregate, to those benefits provided to the
Executive immediately prior to the Change in Control.  

Notwithstanding
the foregoing, in the event Executive provides the Company with a Notice of
Termination (as defined below) referencing this Section 3(e), the Company shall
have 30 days thereafter in which to cure or resolve the behavior otherwise
constituting Good Reason. Any good faith determination by Executive that Good
Reason exists shall be presumed correct and shall be binding upon the
Company.

(f) Notice
of Termination. Any
purported termination of the Executive's employment (other than on account of
Executive’s death) with an Employer, if such termination occurs after the
occurrence of a Change in Control or under circumstances specified under Section
3(a)(ii) above, shall be communicated by a Notice of Termination to the
Executive, if such termination is by an Employer, or to an Employer, if such
termination is by the Executive. For purposes of this Agreement, "Notice of
Termination" shall mean a written notice which shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive's employment under the provisions so
indicated. For
purposes of this Agreement, no purported termination of Executive's employment
with an Employer shall be effective without such a Notice of Termination having
been given.

4. Compensation
Upon Termination After a Change in Control.

Subject
to Section 9 hereof, if within two years of a Change in Control, the Executive's
employment by an Employer shall be terminated in accordance with Section 3(a)
(the "Termination"), the Executive shall be entitled to the following payments
and benefits: 

(a) Severance. The
Company shall pay or cause to be paid to the Executive a cash severance amount
equal to (i) three (3)
times the sum of (A) the Executive's annual base salary on the date of the
Change in Control (or, if higher, the annual base salary in effect immediately
prior to the giving of the Notice of Termination) and (B) the higher of: (x) the
average of the actual bonuses earned by the Executive in respect of the three
years prior to the year in which the Change in Control occurs under the
Company’s incentive award program, or (y) the Executive’s target bonus for the
year of Termination, plus (ii) in lieu of continuation of any of the Executive’s
perquisites as provided to the Executive prior to the Change in Control (or, if
greater, at the time of Termination), a cash payment equal to 7 percent of the
Executive’s annual base salary as in effect on the date of the Change in Control
for each of the three (3) years following the date of Termination. This cash
severance amount shall be payable in a lump sum.

(b) Additional
Payments and Benefits. The
Executive shall also be entitled to: 

(i)
 a lump
sum cash payment equal to the sum of (A) the Executive's accrued but unpaid
annual base salary through the date of Termination, (B) the unpaid portion, if
any, of bonuses previously earned by the Executive pursuant to the Company's
Executive incentive award program, plus the pro rata portion of the bonus to be
paid for the year in which the date of Termination occurs (calculated through
the date of Termination), and (C) an amount, if any, equal to compensation
previously deferred (excluding any qualified plan deferral) and any accrued
vacation pay, in each case, in full satisfaction of Executive's rights
thereto.

(ii)
 a lump
sum cash payment equal to the aggregate sum of (A) additional pension
contributions in an amount equal to the Company's contributions under the
Company's 401(k) plan, profit sharing or other savings pension plans (or such
other qualified and nonqualified defined contribution pension plans as then in
effect) for the three (3) year
period following the date of Termination (the "Separation Period") (based on
assumed rates of Executive's contributions at the level of participation in
effect as of the last date Executive was permitted to participate); and (B) the
difference between the discounted present value (i.e., lump sum value) of the
annuity benefit the Executive is entitled to receive under the Company’s
qualified and nonqualified defined benefit retirement programs in which the
Executive is a participant calculated through the date of Termination and the
discounted present value (i.e., lump sum value) of the annuity benefit the
Executive would be entitled to receive under such retirement programs calculated
after adding an additional five years of credit to age and service up to a
maximum of age 65 as if the executive had been paid at the rate used to
calculate the payments under Section 4(a), provided that the additional credits
added with respect to each retirement program shall not exceed five years when
added to any additional credits already provided by the terms of the such
programs in respect of the Termination covered hereby.

(iii)
 continued
medical, dental, vision, and life insurance coverage (excluding accident, death,
and disability insurance) for the Executive and the Executive's eligible
dependents or, to the extent such coverage is not commercially available, such
other arrangements reasonably acceptable to the Executive, on the same basis as
in effect prior to the Change in Control or the Executive's Termination,
whichever is deemed to provide for more substantial benefits, for a period
ending on the earlier of (A) the end of the Separation Period or (B) the
commencement of comparable coverage by the Executive with a subsequent
employer;

(iv)
 unless it
would adversely affect the Company’s ability to use pooling of interest
accounting in a Change in Control transaction in which such accounting is
intended to be used, immediate 100% vesting of all outstanding stock options,
stock appreciation rights and restricted stock granted or issued by any Employer
to the extent not previously vested on or following the Change of Control;
and

(v) all
other accrued or vested benefits in accordance with the terms of the applicable
plan (with an offset for any amounts paid under Section 4(b)(i)(C),
above).

All lump
sum payments under this Section 4 shall be paid within 15 business days after
Executive's date of Termination, provided,
however, that
such payment shall be made 30 days after Termination in the event that the
Company requires the Executive to sign a release at the time of Termination.
Discounted present value (i.e., lump sum value) for purposes of subsection (ii)
above shall be calculated using a discount factor equal to one percentage point
below the rate of interest, per annum, publicly announced by The Chase Manhattan
Bank, N.A. as its prime rate in effect at its principal office in New York City,
and using the actuarial factors set forth in the defined benefit retirement
program.

(c) Outplacement. If so
requested by the Executive, outplacement services shall be provided by a
professional outplacement provider selected by Executive; provided,
however, that
such outplacement services shall be provided the Executive at an aggregate total
cost to the Company of not more than ten (10) percent of such Executive's annual
base salary.

(d) Withholding.
Payments and benefits provided pursuant to this Section 4 shall be subject to
any applicable payroll and other taxes required to be withheld.

5. Compensation
Upon Termination for Death, Disability or Retirement.

If an
Executive's employment is terminated by reason of Death, Disability or
Retirement prior to any other termination, Executive will receive:

(a) the sum
of (i) Executive's accrued but unpaid salary through the date of Termination,
(ii) the pro rata portion of the Executive's target bonus for the year of
Executive's Death or Disability (calculated through the date of Termination),
and (iii) an amount equal to any compensation previously deferred and any
accrued vacation pay; and

(b) other
accrued or vested benefits in accordance with the terms of the applicable plan
(with an offset for any amounts paid under item (a)(iii), above).

6. Excess
Parachute Payments.

(a) (i)
If it is determined (as hereafter provided) that any payment or distribution by
the Company or any Employer to or for the benefit of the Executive, whether paid
or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise pursuant to or by reason of any other agreement, policy,
plan, program or arrangement, including without limitation any stock option,
stock appreciation right or similar right, or the lapse or termination of any
restriction on or the vesting or exercisability of any of the foregoing (a
"Severance Payment"), would be subject to the excise tax imposed by Section 4999
of the Code (or any successor provision thereto) by reason of being "contingent
on a change in ownership or control" of the Company, within the meaning of
Section 280G of the Code (or any successor provision thereto) or to any similar
tax imposed by state or local law, or any interest or penalties with respect to
such excise tax (such tax or taxes, together with any such interest and
penalties, are hereafter collectively referred to as the "Excise Tax"), then the
Executive shall be entitled to receive an additional payment or payments (a
"Gross-Up Payment") in an amount such that, after payment by the Executive of
all taxes (including any interest or penalties imposed with respect to such
taxes), including any Excise Tax, imposed upon the Gross-Up Payment, the
Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Severance Payments.

 

                (ii)  Subject
to the provisions of Section 6(a)(i) hereof, all determinations required to be
made under this Section 6, including whether an Excise Tax is payable by the
Executive and the amount of such Excise Tax and whether a Gross-Up Payment is
required and the amount of such Gross-Up Payment, shall be made by the
nationally recognized firm of certified public accountants (the "Accounting
Firm") used by the Company prior to the Change in Control (or, if such
Accounting Firm declines to serve, the Accounting Firm shall be a nationally
recognized firm of certified public accountants selected by the Executive). The
Accounting Firm shall be directed by the Company or the Executive to submit its
preliminary determination and detailed supporting calculations to both the
Company and the Executive within 15 calendar days after the Termination Date, if
applicable, and any other such time or times as may be requested by the Company
or the Executive. If the Accounting Firm determines that any Excise Tax is
payable by the Executive, the Company shall pay the required Gross-Up Payment
to, or for the benefit of, the Executive within five business days after receipt
of such determination and calculations. If the Accounting Firm determines that
no Excise Tax is payable by the Executive, it shall, at the same time as it
makes such determination, furnish the Executive with an opinion that he has
substantial authority not to report any Excise Tax on his/her federal, state,
local income or other tax return. Any determination by the Accounting Firm as to
the amount of the Gross-Up Payment shall be binding upon the Company and the
Executive absent a contrary determination by the Internal Revenue Services or a
court of competent jurisdiction; provided,
however, that no
such determination shall eliminate or reduce the Company’s obligation to provide
any Gross-Up Payment that shall be due as a result of such contrary
determination. As a result of the uncertainty in the application of Section 4999
of the Code (or any successor provision thereto) and the possibility of similar
uncertainty regarding state or local tax law at the time of any determination by
the Accounting Firm hereunder, it is possible that Gross-Up Payments that will
not have been made by the Company should have been made (an "Underpayment"),
consistent with the calculations required to be made hereunder. In the event
that the Company exhausts or fails to pursue its remedies pursuant to Section
6(a) hereof and the Executive thereafter is required to make a payment of any
Excise Tax, the Executive shall direct the Accounting Firm to determine the
amount of the Underpayment that has occurred and to submit its determination and
detailed supporting calculations to both the Company and the Executive as
promptly as possible. Any such Underpayment shall be promptly paid by the
Company to, or for the benefit of, the Executive within five business days after
receipt of such determination and calculations.

(iii)
 The
federal, state and local income or other tax returns filed by the Executive (or
any filing made by a consolidated tax group which includes the Company) shall be
prepared and filed on a consistent basis with the determination of the
Accounting Firm with respect to the Excise Tax payable by the Executive. The
Executive shall make proper payment of the amount of any Excise Tax, and at the
request of the Company, provide to the Company true and correct copies (with any
amendments) of his/her federal income tax return as filed with the Internal
Revenue Service and corresponding state and local tax returns, if relevant, as
filed with the applicable taxing authority, and such other documents reasonably
requested by the Company, evidencing such payment. If prior to the filing of the
Executive's federal income tax return, or corresponding state or local tax
return, if relevant, the Accounting Firm determines that the amount of the
Gross-Up Payment should be reduced, the Executive shall within five business
days pay to the Company the amount of such reduction.

(iv)
 The
Company and the Executive shall each provide the Accounting Firm access to and
copies of any books, records and documents in the possession of the Company or
the Executive, as the case may be, reasonably requested by the Accounting Firm,
and otherwise cooperate with the Accounting Firm in connection with the
preparation and issuance of the determination contemplated by Section 6(a)
hereof.

(v) The fees
and expenses of the Accounting Firm for its services in connection with the
determinations and calculations contemplated by Sections 6(a)(ii) and (iv)
hereof shall be borne by the Company. If such fees and expenses are initially
advanced by the Executive, the Company shall reimburse the Executive the full
amount of such fees and expenses within five business days after receipt from
the Executive of a statement therefor and reasonable evidence of his/her payment
thereof.

 

(b) In the
event that the Internal Revenue Service claims that any payment or benefit
received under this Agreement constitutes an "excess parachute payment," within
the meaning of Section 280G(b)(1) of the Code, the Executive shall notify the
Company in writing of such claim. Such notification shall be given as soon as
practicable but no later than 10 business days after the Executive is informed
in writing of such claim and shall apprise the Company of the nature of such
claim and the date on which such claim is requested to be paid. The Executive
shall not pay such claim prior to the expiration of the 30 day period following
the date on which the Executive gives such notice to the Company (or such
shorter period ending on the date that any payment of taxes with respect to such
claim is due). If the Company notifies the Executive in writing prior to the
expiration of such period that it desires to contest such claim, the Executive
shall (i) give the Company any information reasonably requested by the Company
relating to such claim; (ii) take such action in connection with contesting such
claim as the Company shall reasonably request in writing from time to time,
including without limitation, accepting legal representation with respect to
such claim by an attorney reasonably selected by the Company and reasonably
satisfactory to the Executive; (iii) cooperate with the Company in good faith in
order to effectively contest such claim; and (iv) permit the Company to
participate in any proceedings relating to such claim; provided,
however, that
the Company shall bear and pay directly all costs and expenses (including, but
not limited to, additional interest and penalties and related legal, consulting
or other similar fees) incurred in connection with such contest and shall
indemnify and hold the Executive harmless, on an after-tax basis, for and
against any Excise Tax or other tax (including interest and penalties with
respect thereto) imposed as a result of such representation and payment of costs
and expenses.

(c) The
Company shall control all proceedings taken in connection with such contest and,
at its sole option, may pursue or forgo any and all administrative appeals,
proceedings, hearings and conferences with the taxing authority in respect of
such claim and may, at its sole option, either direct the Executive to pay the
tax claimed and sue for a refund or contest the claim in any permissible manner,
and the Executive agrees to prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more
appellate courts, as the Company shall determine; provided,
however, that if
the Company directs the Executive to pay such claim and sue for a refund, the
Company shall advance the amount of such payment to the Executive on an
interest-free basis, and shall indemnify and hold the Executive harmless, on an
after-tax basis, from any Excise Tax or other tax (including interest and
penalties with respect thereto) imposed with respect to such advance or with
respect to any imputed income with respect to such advance; and provided,
further, that if
the Executive is required to extend the statute of limitations to enable the
Company to contest such claim, the Executive may limit this extension solely to
such contested amount. The Company's control of the contest shall be limited to
issues with respect to which a corporate deduction would be disallowed pursuant
to Section 280G of the Code and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority. In addition, no position may be taken nor
any final resolution be agreed to by the Company without the Executive's consent
if such position or resolution could reasonably be expected to adversely affect
the Executive (including any other tax position of the Executive unrelated to
matters covered hereby).

 

           (d) If, after the receipt
by the Executive of an amount advanced by the Company in connection with the
contest of the Excise Tax claim, the Executive becomes entitled to receive any
refund with respect to such claim, the Executive shall promptly pay to the
Company the amount of such refund (together with any interest paid or credited
thereon after taxes applicable thereto); provided,
however, if the
amount of that refund exceeds the amount advanced by the Company or it is
otherwise determined for any reason that additional amounts could be paid to the
Named Executive without incurring any Excise Tax, any such amount will be
promptly paid by the Company to the named Executive (or shall be applied to
reduce any amount that Executive would otherwise be required to pay the
Company). If, after the receipt by the Executive of an amount advanced by the
Company in connection with an Excise Tax claim, a determination is made that the
Executive shall not be entitled to any refund with respect to such claim and the
Company does not notify the Executive in writing of its intent to contest the
denial of such refund prior to the expiration of 30 days after such
determination, such advance shall be forgiven and shall not be required to be
repaid and shall be deemed to be in consideration for services rendered after
the date of the Termination.

7. Expenses. In
addition to all other amounts payable to the Executive under this Agreement, the
Company shall pay or reimburse the Executive for reasonable legal fees
(including without limitation, any and all court costs and reasonable attorneys'
fees and expenses) incurred by the Executive in connection with or as a result
of any claim, action or proceeding brought by the Company or the Executive with
respect to or arising out of this Agreement or any provision hereof;
provided,
however, that
the Company shall have no obligation to pay any such legal fees, if (i) in the
case of an action brought by the Executive, the Company is successful in
establishing with the court that the Executive’s action was frivolous or
otherwise without any reasonable legal or factual basis; or (ii) in connection
with any such claim, action or proceeding arising out of Section 12 of this
Agreement.

8. Obligations
Absolute; Non-Exclusivity of Rights; Joint Several Liability.

(a) The
obligations of the Company to make the payments to the Executive, and to make
the arrangements, provided for herein shall be absolute and unconditional and
shall not be reduced by any circumstances, including without limitation any
set-off, counterclaim, recoupment, defense or other right which the Company may
have against the Executive or any third party at any time.

(b) Nothing
in this Agreement shall prevent or limit the Executive's continuing or future
participation in any benefit, bonus, incentive or other plan or program provided
by the Company or any other Employer and for which the Executive may qualify,
nor shall anything herein limit or reduce such rights as the Executive may have
under any agreements with the Company or any other Employer. 

 

(c) Each
entity included in the definition of "Employer" and any successors or assigns
shall be joint and severally liable with the Company under this
Agreement.

9. Not an
Employment Agreement; Effect On Other Rights.

(a) This
Agreement is not, and nothing herein shall be deemed to create, a contract of
employment between the Executive and the Company. The Company may terminate the
employment of the Executive by the Company at any time, subject to the terms of
this Agreement and/or any employment agreement or arrangement between the
Company and the Executive that may then be in effect.

(b) This
Agreement supersedes all prior agreements covering change in control or any
other subject matter covered by this Agreement and Executive hereby represents
that the Executive has no other oral or written representations, understandings
or agreements with the Company or any of its officers, directors or
representatives covering any such subject matter and agrees that any and all
prior written agreements relating to such subject matter shall be terminated
effective as of the date of execution of this Agreement and shall be of no
further force or effect. 

10. Successors;
Binding Agreement, Assignment.

(a) The
Company shall require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
of the Company, by agreement to expressly, absolutely and unconditionally assume
and agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform it if no such succession had taken
place. Failure of the Company to obtain such agreement prior to the
effectiveness of any such succession shall be a material breach of this
Agreement and shall entitle the Executive to terminate the Executive's
employment with the Company or such successor for Good Reason immediately prior
to or at any time after such succession. As used in this Agreement, "Company"
shall mean (i) the Company as hereinbefore defined, and (ii) any successor to
all the stock of the Company or to all or substantially all of the Company's
business or assets which executes and delivers an agreement provided for in this
Section 10(a) or which otherwise becomes bound by all the terms and provisions
of this Agreement by operation of law, including any parent or subsidiary of
such a successor.

(b) This
Agreement shall inure to the benefit of and be enforceable by the Executive's
personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If the Executive should die while any
amount would be payable to the Executive hereunder if the Executive had
continued to live, all such amounts, unless otherwise provided herein, shall be
paid in accordance with the terms of this Agreement to the Executive's estate or
designated beneficiary. Neither this Agreement nor any right arising hereunder
may be assigned or pledged by the Executive.

11. Notice. For
purpose of this Agreement, notices and all other communications provided for in
this Agreement or contemplated hereby shall be in writing and shall be deemed to
have been duly given when personally delivered, delivered by a nationally
recognized overnight delivery service or when mailed United States certified or
registered mail, return receipt requested, postage prepaid, and addressed, in
the case of the Company, to the Company at:

Kerr-McGee
Corporation

123
Robert S. Kerr Avenue 

P.O. Box
25861 

Oklahoma
City, Oklahoma 73125

Attention:
Chief Executive Officer

(with a
copy to General Counsel)

and in
the case of the Executive, to the Executive at the address set forth on the
execution page at the end hereof.

Either
party may designate a different address by giving notice of change of address in
the manner provided above, except that notices of change of address shall be
effective only upon receipt.

12.
Confidentiality.

           (a) The
Executive shall retain in confidence any and all confidential information
concerning the Company and its respective business which is now known or
hereafter becomes known to the Executive, except as otherwise required by law
and except information (i) ascertainable or obtained from public information,
(ii) received by the Executive at any time after the Executive's employment by
the Company shall have terminated, from a third party not employed by or
otherwise affiliated with the Company or (iii) which is or becomes known to the
public by any means other than a breach of this Section 12. Upon the Termination
of employment, the Executive will not take or keep any proprietary or
confidential information or documentation belonging to the Company.

(b) The
Executive acknowledges and agrees that the Company’s remedies at law for a
breach or threatened breach of any of the provisions of this Section 12 would be
inadequate and, in recognition of this fact, Executive agrees that, in the event
of such a breach or threatened breach, in addition to any remedies at law, the
Company, without posting any bond, shall be entitled to cease making any
payments or providing any benefit otherwise required by this Agreement during
the pendency of any dispute involving such Section and to obtain equitable
relief in the form of specific performance, temporary restraining order,
temporary or permanent injunction or any other equitable remedy which may then
be available. Upon the resolution of such dispute, any payments or benefits
required by this Agreement which were suspended during the pendency of the
dispute shall be paid or provided to the Executive if it is determined that no
breach of this Section 12 occurred.

This
paragraph 12 shall survive this Agreement.

13.
 Release. In the
event that the Company requests a release from the Executive, in the form
attached hereto as Exhibit A, then as a condition to providing any payments or
benefits under this Agreement, the Executive shall deliver such
release.

14. Miscellaneous. No
provision of this Agreement may be amended, altered, modified, waived or
discharged unless such amendment, alteration, modification, waiver or discharge
is agreed to in writing signed by the Executive and such officer of the Company
as shall be specifically designated by the Committee or by the Board of
Directors of the Company. No waiver by either party, at any time, of any breach
by the other party of, or of compliance by the other party with, any condition
or provision of this Agreement to be performed or complied with by such other
party shall be deemed a waiver of any similar or dissimilar provision or
condition of this Agreement or any other breach of or failure to comply with the
same condition or provision at the same time or at any prior or subsequent time.
No agreements or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are
not expressly set forth in this Agreement.

15. Severability. If any
one or more of the provisions of this Agreement shall be held to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions of this Agreement shall not be affected thereby. To the
extent permitted by applicable law, each party hereto waives any provision of
law which renders any provision of this Agreement invalid, illegal or
unenforceable in any respect.

16. Governing
Law; Venue. The
validity, interpretation, construction and performance of this Agreement shall
be governed exclusively by the laws of the State of Delaware
without giving effect to its conflict of laws rules. For purposes of
jurisdiction and venue, the Company and each Employer hereby consents to
jurisdiction and venue in any suit, action or proceeding with respect to this
Agreement in any court of competent jurisdiction in the state in which Executive
resides at the commencement of such suit, action or proceeding and waives any
objection, challenge or dispute as to such jurisdiction or venue being
proper.

   

17. Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be an
original and all of which shall be deemed to constitute one and the same
instrument.

        IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first above
written.

	 	
      KERR-MCGEE
      CORPORATION

       

       

       

      By:
      /s/
      Luke R.
      Corbett                          
      

      Luke
      R. Corbett

      Chairman
      and Chief Executive Officer

	 	
       

       

       

      /s/
      David A.
      Hager                                    
      

      David
      A. Hager

      6115
      Lark Valley Court

      Kingwood,
      Texas 77345

Exhibit
A

RELEASE

[__________]
("Executive"), for and in consideration of the payments and benefits that
Executive shall receive under this Agreement, hereby executes the following
General Release ("Release") and agrees as follows:

1. Executive,
on behalf of Executive, Executive’s agents, assignees, attorneys, successors,
assigns, heirs and executors, to, and Executive does hereby fully and completely
forever release the Company and its affiliates, predecessors and successors and
all of their respective past and/or present officers, directors, partners,
members, managing members, managers, Executives, agents, representatives,
administrators, attorneys, insurers and fiduciaries in their individual and/or
representative capacities (hereinafter collectively referred to as the
"Releasees"), from any and all causes of action, suits, agreements, promises,
damages, disputes, controversies, contentions, differences, judgments, claims,
debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties,
covenants, contracts, variances, trespasses, extents, executions and demands of
any kind whatsoever, which Executive or Executive’s heirs, executors,
administrators, successors and assigns ever had, now have or may have against
the Releasees or any of them, in law, admiralty or equity, whether known or
unknown to Executive, for, upon, or by reason of, any matter, action, omission,
course or thing whatsoever occurring up to the date this Release is signed by
Executive, including, without limitation, in connection with or in relationship
to Executive’s employment or other service relationship with the Company or its
affiliates, the termination of any such employment or service relationship and
any applicable employment, compensatory or equity arrangement with the Company
or its respective affiliates; provided that such released claims shall not
include any claims to enforce Executive’s rights under, or with respect to, this
Release (such released claims are collectively referred to herein as the
"Released Claims").

2.
 Notwithstanding
the generality of clause (1) above, the Released Claims include, without
limitation, (a) any and all claims under Title VII of the Civil Rights Act of
1964, the Age Discrimination in Employment Act of 1967, the Civil Rights Act of
1971, the Civil Rights Act of 1991, the Fair Labor Standards Act, the Executive
Retirement Income Security Act of 1974, the Americans with Disabilities Act, the
Family and Medical Leave Act of 1993, and any and all other federal, state or
local laws, statutes, rules and regulations pertaining to employment or
otherwise, and (b) any claims for wrongful discharge, breach of contract, fraud,
misrepresentation or any compensation claims, or any other claims under any
statute, rule, regulation or under the common law, including compensatory
damages, punitive damages, attorney’s fees, costs, expenses and all claims for
any other type of damage or relief.

3.
 This
means that, by signing this Release, the Executive shall have waived any right
to which the Executive may have had to bring a lawsuit or make any claim against
the releasees based on any acts or omissions of the releasees up to the date of
the signing of this Release.

4.
 Executive
represents that he has read carefully and fully understands the terms of this
Release, and that Executive has been advised to consult with an attorney and
have had the opportunity to consult with an attorney prior to signing this
Release. Executive acknowledges that he is executing this Release voluntarily
and knowingly and that he has not relied on any representations, promises or
agreements of any kind made to Executive in connection with Executive’s decision
to accept the terms of this Release, other than those set forth in this Release.
Executive acknowledges that Executive has been given at least twenty-one (21)
days to consider whether Executive wants to sign this Release and that the Age
Discrimination in Employment Act gives Executive the right to revoke this
Release within seven (7) days after it is signed, and Executive understands that
he will not receive any payments due him under this Release until such seven (7)
day revocation period (the "Revocation Period") has passed and then, only if
Executive has not revoked this Release. To the extent Executive has executed
this Release within less than twenty-one (21) days after its delivery to
Executive, Executive hereby acknowledges that his decision to execute this
Release prior to the expiration of such twenty-one (21) day period was entirely
voluntary.

KERR-MCGEE
CORPORATION

_________________________     ______________________________

Executive        Title:

Name:Oryx Energy Company Executive Retirement Plan

Exhibit
10.34A

 

 

 

 

 

 

 

 

 

ORYX ENERGY
COMPANY

 

EXECUTIVE
RETIREMENT PLAN

 

 

 

 

 

 

 

As Amended
and Restated as of January 1, 1995

 

 

(Except as Otherwise Provided Herein)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ORYX ENERGY
COMPANY

 

Executive
Retirement Plan

 

Table of
Contents

 

 

	
      Article
	
       
	
      Page

	
       
	
      PREAMBLE
	
            
      1

	
      I
	
      Definitions
	
         
      2-6

	
      II
	
      Contributions
	
            
      7

	
      III
	
      Retirement
      Benefits
	
        8-11

	
      IV
	
      Optional Forms of
      Retirement Income
	
      12-14

	
      V
	
      Death Benefits
	
      15-16

	
      VI
	
      Termination of
      Employment or Status

         As
      Executive; Reemployment
	
       

      17-19

	
      VII
	
      Disability
      Benefits
	
          
      20

	
      VIII
	
      Administration of the
      Plan
	
      21-24

	
      IX
	
      General
    Provisions
	
      25-27

 

 

 

 

 

 

 

 

 

 

 

 

 

-i-

 

 ORYX ENERGY COMPANY

EXECUTIVE RETIREMENT PLAN

 

 

PREAMBLE

 

Oryx
Energy Company (the “Company”) adopted and established the Oryx Energy Company
Executive Retirement Plan (the “Plan”), for the exclusive benefit of certain of
its executives and their beneficiaries in November 1988. The Plan superseded the
Sun Company, Inc. Executive Retirement Plan (the “Predecessor Plan”) with
respect to those Executives of the Company who had been participants in the
Predecessor Plan. Subsequently, the Plan was amended from time to time. 
Effective as of January 1, 1995, (except as otherwise provided herein) the
Company has, by execution of this document, amended and restated the Plan in its
entirety, subject to the terms and conditions hereinafter set
forth.

           
Except as otherwise provided herein, any Participant under the Plan prior to
January 1, 1995, who died, retired, became disabled, terminated employment or
otherwise ceased to be a Participant thereunder prior to January 1, 1995, shall
receive any benefits to which he or she is entitled based upon the provisions of
the Plan as in effect prior to January 1, 1995.

 

           
The purpose of the Plan is primarily to provide additional retirement benefits
to a select group of highly compensated or management employees of the Company
through an unfunded plan.

 

 

 

-1-

ORYX ENERGY COMPANY

EXECUTIVE RETIREMENT PLAN

 

ARTICLE I

DEFINITIONS

 

1.01                
“Actuarial Equivalent” means a benefit of equivalent current value to the
benefit which would otherwise have been provided to the Participant, determined
on the basis of appropriate actuarial assumptions and methods and in accordance
with rules established by the Plan Administrator.

 

1.02                
“Affiliated Company” means the Company and:

 

(a)    
Any other corporation which is included within a “controlled group of
corporations” within which the Company is also included, as determined under
section 1563 of the 1986 Internal Revenue Code without regard to subsections
(a)(4) and (e)(3)(C) of said section 1563;

 

(b)    
Any other trades or businesses (whether or not incorporated) which, based on
principles similar to those defining a controlled group of corporations for
purposes of (a) above, are under common control; and

 

(c)    
Any other organization so designated by the Board Committee.

 

1.03    
            “Affiliated
Company Benefit” means the monthly amount of benefit (or the Actuarial
Equivalent of such benefit) to which a Participant and/or his Spouse is or was
entitled under the Base Plan or any other qualified or nonqualified defined
contribution or defined benefit plan (including any combination of a qualified
plan and a related excess benefit plan) that is or was maintained by an
Affiliated Company as the primary source of employer-provided retirement income
for participants of such plan; provided, however, that in the case of a defined
contribution plan, the value of such Benefit will be determined based on the
aggregate contributions made on behalf of the Participant (whether or not
subsequently withdrawn by the Participant), accumulated at a rate or rate’s of
interest as determined by the Plan Administrator, which determination will be
made in a uniform and consistent manner.

 

1.04    
            “Base Plan”
means the Oryx Energy Company Retirement Plan and the, Oryx Energy Company
Pension Restoration Plan for Certain Employees of the Company, or any similar or
successor plan or plans.

 

 

 

 

 

-2-

 ORYX
ENERGY COMPANY

EXECUTIVE
RETIREMENT PLAN

 

1.05                
“Beneficiary” means the person or persons, other than a contingent annuitant,
designated by a Participant or retired Participant pursuant to Article IV.

 

1.06                
“Board of Directors” means the Board of Directors of the Company.

 

1.07                
“Board Committee” means those individual Directors who have been appointed by
the Board of Directors with the powers and responsibilities specified in Article
VIII and to which has been delegated any authority or responsibility of the
Board of Directors with respect to the Plan.

 

1.08                
“Company” means Oryx Energy Company or any corporation which succeeds to the
position of Oryx Energy Company as common parent of the controlled group of
corporations, within the meaning of regulations issued under the Internal
Revenue Code.

 

1.09                
“Credited Service,” subject to the limitations hereinafter described, means the
actual amount, in completed years and months, of the Participant’s Service.

 

Credited
Service will not include periods of employment with an Affiliated Company before
or after it becomes or ceases to be an Affiliated Company.

 

1.10                
“Earnings” means the “Earnings” of a Transferred Participant under the
Predecessor Plan through October 31, 1988, and the total basic compensation paid
or payable to “a Participant by the Company or an Affiliated Company on and
after November 1, 1988.

 

1.11                
“Employee” means the individual who is employed by the Company or an Affiliated
Company.

 

1.12                
“ERISA” means the Employee Retirement Income Security Act of 1974, as
amended.

 

1.13                
“Executive” means any Employee who is employed by the Company at the level of
Vice President or above.

 

1.14                
“Executive Service” means “Executive Service” earned by a Transferred
Participant under the Predecessor Plan through October 31, 1988, and that part
of a Participant’s Service which was rendered on and after November 1, 1988,
while he was an Executive.

 

 

 

 

-3-

ORYX ENERGY COMPANY

EXECUTIVE RETIREMENT PLAN

 

1.15                
“Final Average Earnings” means the arithmetic average of the Participant’s
considered earnings over the 36 consecutive calendar months which are within the
last 120 consecutive calendar months prior to the actual retirement that produce
the highest average of all such 36-month periods. The Participant’s considered
earnings during any such 36-month period equal: the Participant’s aggregate
Earnings; plus, any executive incentive bonuses imputed during that 36-month
period, as described in the following sentences. One-executive incentive bonus
will be imputed, each calendar yearequal to the Participant’s guideline
incentive percentage in effect as of the date the Participant’s first actual
executive incentive bonus payment is made. An that calendar year under the Oryx
Energy Company Executive Incentive Plan, multiplied by the Participant’s
annualized base rate of pay in effect as of that same date and will be deemed to
be considered earnings for the month in which the first actual executive
incentive bonus payment is made for such calendar year.  If no such bonus
is paid to the Participant, while he is an Employee, in a calendar year, a bonus
will be imputed as described using the guideline percentage and rate of pay in
effect as of February 1 of that calendar year and will be deemed to be
considered earnings for such February (except that if the Participant’s
termination of employment occurred in January, then his rate of pay as of
January 1 will be used and the imputed bonus will be deemed considered earnings
for such January). These “imputed executive incentive bonuses” will be used to
determine Final Average Earnings under this Plan only, and without regard to the
actual executive incentive bonuses received by the Participant under the Oryx
Energy Company Executive Incentive Plan.  If during any such 36-month
consecutive month period a Participant has four of such “imputed executive
incentive bonuses,” then the imputed bonus amount that is the least of the four
amounts will be disregarded.

 

1.16                
“Nonaffiliated Employer Benefit” means the monthly amount of Benefit, (or the
Actuarial Equivalent of such Benefit) to which a Participant and/or his Spouse
is or was entitled as a result of prior employment with any employer other than
the Company or an Affiliated Company under any qualified or nonqualified defined
contribution or defined benefit retirement plan that, is or was maintained by
such employer as the primary source of employer-provided retirement income for
participants of such plan; provided, however, that in the case of a defined
contribution plan, the value of such Benefit will be determined based on the
aggregate contributions made on behalf of the Participant (whether or not
subsequently withdrawn by the Participant), accumulated at a rate or rates of
interest as determined by the Plan Administrator, which determination will be
made in a uniform and consistent manner.

 

 

 

 

-4-

 ORYX
ENERGY COMAPNY

EXECUTIVE
RETIREMENT PLAN

 

1.17                
“Normal Retirement Date” means the first day of the calendar month coincident
with or next following the Participant’s 65th birthday.

 

1.18                
“Participant” means any Employee who is an Executive, a Transferred Participant
or who is designated as a Participant by the Board Committee.  Except as
provided in Section 6.02, if any Participant ceases to be an Executive, he will
thereupon cease to be a Participant (unless otherwise designated by the Board
Committee), and will forfeit all rights to benefits under this Plan.

 

1.19                
“Plan” means the Oryx Energy Company Executive .Retirement Plan as set forth in
this document and as it may from time to time be amended.

 

1.20                
“Plan Administrator” means the individual or entity designated as such by the
Board Committee pursuant to Article VIII.

 

1.21                
“Plan Year” means the annual period beginning on January 1 of any year and
ending on the following December 31.

 

1.22                
“Predecessor Plan” means the Sun Company, Inc. Executive Retirement Plan as it
existed on October 31, 1988.

 

1.23                
“Service” means the completed years and months of “Service” earned by a
Transferred Participant under the Predecessor Plan through October 31, 1988, and
the completed years and months of an Employee’s employment by the Company or an
Affiliated Company on and after November 1, 1988, whether or not continuous.

 

1.24                
“Social Security Benefit” means the primary insurance amount to which a
Participant becomes entitled at age 65 under Social Security legislation in
effect on the earliest of his Normal Retirement Date, early retirement date or
Termination Date.

 

1.25                
“Spouse” means the individual who is the legally married husband or wife of a
Participant.

 

1.26                
“Statutory Benefit” means the monthly amount of any benefit (or the Actuarial
Equivalent of such benefit) from any country other than the United States to
which a Participant, upon proper application, is or would be entitled.

 

1.27                
“Termination Date” means the date on which a Participant ceases to be an
Employee.

 

1.28                
“Transferred Participant” means a person for whom the Predecessor Plan
transferred liability to the Plan effective November 1, 1988.

 

-5-

ORYX
ENERGY COMPANY

EXECUTIVE RETIREMENT PLAN

 

ARTICLE
II

CONTRIBUTIONS

2.01                
Employer Contributions.  All benefits payable under this Plan will
be paid by the Company solely out of its general assets.

2.02                
Participant Contributions.  No contributions by Participants will be
required or permitted under this Plan.

 

2.03                
Expenses of Administration.  All expenses of administering this Plan
will be paid by the Company.

 

 

-6-

ORYX ENERGY COMPANY

EXECUTIVE RETIREMENT PLAN

ARTICLE III

RETIREMENT
BENEFITS

 

3.01                
Normal Retirement. Except as provided in Section 3.04, each Participant
will be eligible to retire on his Normal Retirement Date.

 

3.02                
Normal Retirement Income.  Subject to the provisions of Section
3.03, a Participant who retires on or after his Normal Retirement Date and after
the completion of five years of Executive Service will be entitled to a monthly
normal retirement income equal to the excess of (a) over (b), where:

 

(a)       
equals the sum of:

 

           
(i)         3% of his Final Average
Earnings multiplied by his Credited Service up to a maximum of 10 years,
plus

 

           
(ii)        1-1/2% of his Final Average
Earnings multiplied by his Credited Service in excess of 10 years, and

 

(b)
       equals the sum of:

 

(i)        
1% of his Social Security Benefit multiplied by his Credited Service up to a
maximum of 30 years,

 

(ii)       
100% of his Affiliated Company Benefit, plus

 

(iii)      
100% of his Statutory Benefit.

 

3.03                
Maximum Normal Retirement Income.

 

The
monthly normal retirement income which a Participant would otherwise be entitled
to receive under Section 3.02, will not exceed 65% of his Final Average Earnings
less the sum of the offsets under Section 3.02(b) above.

 

 3.04                Early
Retirement Date. A Participant will be eligible to retire on an early
retirement date which will be the first day of any calendar month coincident
with or next following his 52nd birthday if he has then completed at least five
years of Executive Service.

 

-7-

 ORYX
ENERGY COMPANY

EXECUTIVE
RETIREMENT PLAN

 

3.05                
Early Retirement Income. The monthly, early retirement income payable to
the Participant commencing on his early retirement date will be equal to the
monthly normal retirement income that would otherwise be applicable under
Sections 3.02 and 3.03, adjusted as follows:

 

(a)       
The Social Security Benefit referred to in Sections 3.02 and 3.03 will be
determined by projecting the Participant’s Credited Service to his Normal
Retirement Date (but such Projected Credited Service, shall not exceed 30 years)
and assuming constant Earnings, at his last rate in effect, to Normal Retirement
Date, and will then be multiplied by a fraction, the numerator of which will be
his Credited Service to the date of actual retirement and the denominator of
which will be his projected Credited Service to Normal Retirement Date.

 

(b)       
The amount calculated in Section 3.02(a) and the offset for Social Security
Benefits calculated in Section 3.02(b) and 3.03 will be reduced by 5/12% for
each full month by which actual retirement precedes Normal Retirement Date by
more than five years.

 

3.06                
Normal Form of Benefit. Except as provided for in Article IV, a
Participant’s retirement benefits under this Plan will be paid in the form of a
lump sum equal to the lump sum present value of the retirement income determined
under Sections 3.02, 3.03 and 3.05, whichever is applicable. For purposes of
determining such lump-sum present value (i) the interest rate and mortality
assumptions that would apply to such Participant at such time for such purpose
under the Oryx Energy Company Retirement Plan shall be used; and (ii) the value
of any early retirement and survivor benefits subsidies otherwise included in
the determination of benefits under the Plan shall be reflected in such lump-sum
amount.

 

3.07                
Time of Payment. The payment of a Participant’s retirement benefits shall
be made or commence no later than the last day of the calendar month in which
the Participant retires.

 

3.08                
Special Enhancement Program.

 

(a)       
Special Enhancement Program.  A Participant who meets the requirements for
a benefit under the Special Enhancement Program, as set forth in Section
3.08(b), shall have the Early Retirement Income under Section 3.05 or the Normal
Retirement Income under Section 3.02, whichever is applicable, calculated in
accordance with Section 3.08(b) below, subject to 3.08(c) below.  For
purposes of this Section 3.08, the following definitions shall apply.

 

 

-8-

 ORYX
ENERGY COMPANY

EXECUTIVE
RETIREMENT PLAN

 

(i)        
Adjusted Age - Adjusted Age shall be a Participant’s actual age plus two
years. For purposes of the benefit under Section 3.08(a), a Participant’s
Adjusted Age shall not exceed 60.

 

(ii)       
Adjusted Service - Adjusted Service shall be a Participant’s actual
Service plus two years.

 

(iii)      
Adjusted Credited Service – Adjusted Credited Serviceshall be a
Participant’s actual Credited Service plus two years.

 

(b)       
Enhanced Retirement Benefit.  A Participant shall be eligible for an
Enhanced Retirement Benefit under this Section if his employment with the
Employer terminated under an outplacement program during 1995 and his actual age
is at least 50 and his actual Executive Service equals at least five
years.  A Participant who meets the requirements for an Enhanced Retirement
Benefit shall have his benefit determined in accordance with Section 3.02, 3.03
or 3.05, as applicable, provided that:

 

(i)        
The amounts set forth in Section 3.02(a) and (b)(i) shall be determined using
the Participant’s Adjusted Credited Service, rather than his actual Credited
Service; provided that for purposes of determining the Social Security Benefit
offset amount described in Section 3.05(a), a Participant’s Adjusted Credited
Service shall be used only in the numerator of the fraction included in Section
3.05(a) (except such fraction so determined cannot exceed 1.0).

 

(ii)       
The reductions described in Section 3.05(b), for commencement of a Participant’s
benefit that precedes Normal Retirement Date, shall be determined by reference
to the number of full months that his Adjusted Age precedes his age at his
Normal Retirement Date, rather than the number of full months that his actual
retirement precedes his Normal Retirement Date.

 

(iii)      
To the extent that under the terms of the Plan, a Participant who has met the
early retirement eligibility requirements, or the beneficiary of such a
Participant, is entitled to select optional payment forms, or to receive death
benefits, a Participant who meets such requirements solely as a result of this
Section shall be deemed to have met the early retirement eligibility
requirements.

 

 

 

-9-

 ORYX
ENERGY COMPANY

EXECUTIVE
RETIREMENT PLAN

 

(c)       
Minimum Benefit. If the amount of any Participant’s Enhanced Retirement
Benefit determined above in this Section 3.08 (which is determined by using an
enhanced Affiliated Company Benefit, offset from the Oryx Energy Company
Retirement and Pension Restoration Plans, in accordance with the Special
Enhancement Program thereunder) is less than what such Participant’s regular
unenhanced Retirement income would be hereunder if both the Special Enhancement
Program described above in this Section 3.08 and the Special Enhancement Program
described in the Base Plan were disregarded, then such Participant shall have
his Retirement Income determined hereunder by disregarding the Special
Enhancement Program under this Plan and disregarding the Special Enhancement
Program under the Base Plan.

 

-10-

ORYX ENERGY COMPANY

EXECUTIVE RETIREMENT PLAN

ARTICLE IV
OPTIONAL FORMS OF RETIREMENT INCOME

 

4.01                
Election of Straight Life Annuity Or Other Optional Form of Payment. Not
later than thirty (30) days prior to a Participant’s retirement date, a
Participant may elect, in lieu of the lump-sum normal form of retirement
benefits, a straight life annuity (equal to the monthly normal retirement income
determined under Sections 3.02, 3.03 and 3.05, whichever is applicable) or an
optional form of retirement income as set forth below.  A Participant may
not change or revoke an elected option unless such change is made thirty (30)
days prior to the Participant’s retirement date. Each election, designation and
revocation of an option will be made in writing and in conformity with such
rules as may be prescribed by the Plan Administrator.  Notwithstanding the
foregoing, a Spouse may not elect an optional form of receiving any benefit
payable under Article V.

 

4.02                
Contingent Annuity Option.  A Participant may elect to receive a
reduced retirement income, the amount of which will be determined by application
of appropriate Actuarially Equivalent factors adopted by the Plan Administrator
for the age and sex of the Participant and the contingent annuitant. The
contingent annuity option provides (a) payments to the Participant for his life,
and (b) continuation of such payments, or any part of them designated by the
Participant, to the contingent annuitant, if surviving, for life.

 

4.03                
Ten-Year Certain Option.  A Participant may elect to receive a
retirement income of Actuarially Equivalent value payable for his life, provided
that such income will be paid to him or to his Beneficiary for ten years after
the Participant’s retirement regardless of whether the Participant or his
Beneficiary survives such period.  At the discretion of the Plan
Administrator, any benefit payable hereunder to a Beneficiary may be commuted
and paid in one sum.

4.04                
Other Forms of Pension. A Participant may elect to receive a benefit
payable over a period not less than his remaining lifetime and, if he so further
elects, thereafter to his designated Beneficiary for as long as his designated
Beneficiary survives him in such other form having an Actuarially Equivalent
value as may be approved by the Plan Administrator and subject to such
conditions as he may prescribe.

 

4.05                
Rules Applicable to Contingent Annuity Option.

 

(a)       
If the Participant should die before the effective date of the contingent
annuity option, no benefit will be payable to the contingent annuitant.

 

-11-

ORYX ENERGY COMPANY

EXECUTIVE RETIREMENT PLAN

 

(b)       
If the contingent annuitant should die before the effective date of the
contingent annuity option, the option will automatically be cancelled and the
normal monthly retirement income will be payable to the Participant in a
straight life annuity as provided in Section 4.01 as if the contingent annuity
option had not been elected.

 

(c)       
If the contingent annuitant should die before the Participant but after the
effective date of the contingent annuity option, benefits will be payable or
continue to be paid to the Participant on the reduced basis; provided, however,
that if the contingent annuitant should die during the first four years
following commencement of the retirement income payments to the Participant, the
amount of the reduced retirement income payable to the surviving retired
Participant will be increased by restoring a percentage of the reduction amount
as follows:

 

           

	
      Death
      of Contingent
	
      Percentage
      of

	
      Annuitant
      During
	
      Discount
      Restored

	
      First
      Year
	
      80%

	
      Second
      Year
	
      60%

	
      Third
      Year
	
      40%

	
      Fourth
      Year
	
      20%

	
      Fifth
      and Subsequent Years
	
      0%

 

(d)       
If the retirement date is earlier than the effective date of the contingent
annuity option, retirement benefits commencing at the actual retirement date
will be made in the straight life annuity form of retirement income, as provided
in Section 4.01. If the Participant and his contingent annuitant are living on
such effective date, the retirement benefit will be adjusted to provide
retirement income on and after such date on the optional form.

 

4.06                
Acceleration Of Annuity Options. Notwithstanding the foregoing, if the
Internal Revenue Service makes a determination that the Participant must include
any amounts from the Plan in his taxable income in a taxable year prior to the
year in which the Participant actually receives those amounts, the Participant
shall receive the Actuarial Equivalent of the remainder of his benefit
determined under Sections 3.02, 3.03 and 3.05, whichever is applicable. 
Such distribution shall be made no later than the last day of the calendar year,
in which the Participant informs the Plan Administrator that the Internal
Revenue Service has made such a determination.

 

-12-

ORYX ENERGY COMPANY

EXECUTIVE RETIREMENT PLAN

ARTICLE V
DEATH BENEFITS

 

5.01                
Preretirement Spouse’s Death Benefit.  The actual form of payment
(monthly annuity or lump-sum) of the death benefit described in this Section
shall, notwithstanding anything to the contrary herein, be determined in
accordance with Section 5.02 hereof.  In the event of the death of a
Participant during active employment, and after having become eligible to elect
an early retirement date, a death benefit in the form of monthly retirement
income in the amount hereinafter set forth will be payable to the Participant’s
Spouse at the time of his death for the lifetime of such Spouse.  The
amount of each such monthly income payment will be 50% of the monthly early
retirement income that would have been payable to the Participant under Section
3.05 had he retired on the date of his death; provided, however, that:

 

(a)       
the reduction specified in Section 3.02(b)(ii) with respect to the Participant’s
Affiliated Company Benefit will not be Applicable;

 

(b)       
the early retirement reduction percentage described in Section 3.05(b) will be
applied only to the offset for Social Security Benefits;

 

(c)       
the monthly income payments to the Spouse will be reduced by 1/2% for each month
that the Spouse is more than ten years younger than the Participant; and

 

(d)       
the amount payable to the Spouse will be reduced by any amount of Affiliated
Company Benefits that are attributable to Affiliated Company contributions and
that are payable to such Spouse.

 

5.02                
Election Of Payment Form Of Preretirement Spouse’s Death Benefit.  A
Participant who is eligible to elect an early retirement date may elect to
have  the preretirement spouse’s death benefit under Section 5.01 paid in
an annuity form pursuant to Section 5.01, or in an Actuarially Equivalent
lump-sum as soon as practicable after the Participant’s death.  A
Participant may change or revoke an elected option at any time prior to his
actual retirement. Each election, designation and revocation of an option will
be made in writing and in conformity with such rules as may be prescribed by the
Plan Administrator.

-13-

 ORYX
ENERGY COMPANY

EXECUTIVE
RETIREMENT PLAN

 

5.03                
Postretirement Spouse’s Death Benefit. In the event a Participant dies
after retiring or after attaining his Normal Retirement Date, and provided the
Participant’s benefit was payable to him in a monthly form under Article IV
hereof, the Spouse to whom he is married on his annuity starting date will
receive a monthly retirement income payable for the lifetime of such Spouse in
an amount equal to 50% of the retirement income being paid or payable to the
Participant (before giving effect to any reduction in income required by the
election of an contingent annuity or period certain optional form of payment
under Article IV); provided, however, that:

 

(a)       
the reduction specified in Section 3.02(b)(ii) with-respect to the Participant’s
Affiliated Company Benefit will not be applicable;

 

(b)       
the monthly income payable to the Spouse will be reduced by 1/2% for each month
that the Spouse ismore than ten years younger than the Participant; and

 

(c)       
the amount payable to the Spouse will be reduced by any amount of spousal
Affiliated Company Benefits that are attributable to Affiliated Company
contributions and that are attributable to such Spouse (even though such amounts
may not actually be payable to such Spouse, due to a waiver of such amounts
and/or election to receive any Affiliated Company Benefits in an optional form
not providing a spousal benefit).

 

The
Spouse’s death benefit payable under this Section will be in addition to any
annuity benefits otherwise payable under Article IV.  In the event the
Participant did not have a Spouse on his annuity starting date, but is survived
by a Spouse on the date of his death, the monthly retirement income described
above shall be paid to such surviving spouse.

 

 

-14-

ORYX ENERGY COMPANY

EXECUTIVE RETIREMENT PLAN

ARTICLE VI
TERMINATION OF EMPLOYMENT OR STATUS
AS
EXECUTIVE; REEMPLOYMENT

 

6.01                
Termination of Employment.  A Participant whose employment is
terminated for any reason other than death under Article V or retirement under
Section 3.01 or 3.04, will not be entitled to benefits under this Plan.

 

6.02                
Termination of Executive Status. If a Participant remains employed by the
Company or an Affiliated Company but ceases to be an Executive, he will forfeit
the right to all benefits under this Plan unless otherwise designated to remain
as a Participant by the Board Committee or unless tie had attained his 55th
birthday and completed at least five years of Executive Service at the time he
ceased to be an Executive.  If any such Participant is designated by the
Board Committee as being eligible to remain a Participant even though no longer
an Executive, the Participant will continue as such for all purposes of this
Plan.  If the Participant is not so designated by the Board Committee but
has attained his 55th birthday and has completed at least five years of
Executive Service, he will remain a Participant, but will be entitled to
benefits based only upon his Service, Credited Service and Final Average
Earnings as of the date he ceased to be an Executive.  Any benefits payable
to a Participant who has ceased to be an Executive shall not be paid until
actual retirement or death, in accordance with Articles III and IV above.

 

6.03                
Reemployment.

 

(a)       
If a retired Participant is reemployed by the Company or an Affiliated Company,
his benefits will thereupon cease, and upon again becoming such an Employee he
will have his prior period of Service, Credited Service and Executive Service
restored to him.  If he had made an election of an optional form of
payment, such election will continue on file with the Plan Administrator, but no
payment will be due under such option in the event of his death before he again
retires. Upon subsequent retirement his retirement income will be based on his
Service and Credited Service which was restored under this Section plus any
Service and Credited Service rendered while employed as an Executive after the
time of his reemployment.

 

(b)       In
all other situations where a retired Participant is reemployed, there will be no
cessation, interruption or adjustment of his retirement income.

 

-15-

ORYX
ENERGY COMPANY

EXECUTIVE
RETIREMENT PLAN

 

6.04                
Change In Control.  Notwithstanding any other provisions of the
Plan, all Participants shall become fully vested upon a Change in Control of the
Company and, upon termination of service from the Company shall be entitled to
benefits calculated as follows:

 

(a)       
If at the time of termination of service, the Participant has attained his Early
Retirement Date, he shall be entitled to a benefit calculated in accordance with
Section 3.05.

 

(b)       
If at the time of termination of service, the Participant has not attained his
early retirement date, he shall be entitled to benefits calculated under Section
3.05 with the exception that the benefits so determined shall, in lieu of the
reductions provided under Section 3.05(b), be reduced actuarially in accordance
with reasonable and appropriate actuarial factors.

 

                       
Such benefits shall commence coincident with or next following the first day of
the calendar month in which the Participant attains age 55.

 

                       
As used in the Plan a “Change in Control” shall be deemed to have occurred if
(a) individuals who were directors of the Company immediately prior to a Control
Transaction shall cease, within two years of such Control Transaction, to
constitute a majority of the Board (or of the Board of Directors of any
successor to the Company or to all or substantially all of its assets) or (b)
any entity, person or Group acquires shares of the Company in a transaction or
series of transactions that result in such entity, person or Group directly or
indirectly owning beneficially fifty-one percent (51%) or more of the
outstanding shares.

 

As
used herein, “Control Transaction” shall be (1) any tender offer for or
acquisition of capital stock of the Company, (2) any merger, consolidation, or
sale of all or substantially all of the assets of the Company which has been
approved by the shareholders, (3) any contested election of directors of the
Company or (4) any combination of the foregoing which results in a change in
voting power sufficient to elect a majority of the Board of Directors. As used
herein, “Group” shall mean persons who act in concert as described in Sections
13(d)(3) and/or 14(d)(2) of the Securities Exchange Act of 1934, as
amended.

 

-16-

ORYX ENERGY COMPANY

EXECUTIVE RETIREMENT PLAN

 

ARTICLE VII

DISABILITY BENEFITS

 

7.01                
Participants Receiving Disability Benefits. A Participant receiving
disability-benefits under the Oryx Energy Company Disability Income Program will
remain a Participant.  Such a Participant will be entitled to a monthly
normal retirement income, to commence at his Normal Retirement Date, computed in
accordance with Section 3.02 or 3.03, as applicable, assuming constant Earnings
and guideline bonus to Normal Retirement Date, Social Security benefits as
calculated under the Social Security Act in effect on the Participant’s date of
disability, and including as Service, Credited Service and Executive Service,
the period during which he qualifies for and receives disability benefits under
the Oryx Energy Company Disability Income Program.  Such determination will
be made as of Normal Retirement Date. The normal form for the payment of
retirement income to the Participant will be as set forth in Section 3.069.

 

7.02                
Status During Disability. A Participant receiving Oryx Energy Company
Disability Income Program benefits prior to his Normal Retirement Date will be
entitled to benefits under Section 5.01 and, if applicable, Section 5.02. 
After his Normal Retirement Date, he will be deemed to have retired. Such a
Participant, if otherwise eligible, may also elect to retire early under the
provision of Section 3.04.

 

 

-17-

ORYX ENERGY COMPANY

EXECUTIVE RETIREMENT PLAN

ARTICLE VIII

 

ADMINISTRATION OF THE PLAN

 

8.01                
Allocation and Delegation of Administrative Responsibilities. 
Administrative responsibilities with respect to the Plan are to be allocated as
set forth in this Article VIII.  A person will have only those specific
powers, duties, responsibilities and obligations as are specifically given him
under this Plan.  It is intended that each person be responsible for the
proper exercise of his own powers, duties, responsibilities and obligations
under this Plan, and generally will not be responsible for any act or failure to
act of another person.  A person may delegate to any person or entity any
of its powers or duties under the Plan.

 

8.02                
Powers and Responsibilities of the Board of ­Directors.  The
Board of Directors has the following powers and responsibilities:

 

(a)       
to authorize amendments to the Plan;

 

(b)       
to terminate the Plan; and

 

(c)       
to appoint and remove members of the Board Committee, as set forth in Section
8.03, below.

 

8.03                
Board Committee.

 

(a)       
The Board Committee will consist of at least three Directors who will be
appointed by and serve at the pleasure of the Board of Directors.  The
Board of Directors will also appoint one member of the Board Committee to act as
Chairman of such Committee. Vacancies will be filled in the same manner as
appointments.  Any member of the Board Committee may resign by delivering a
written resignation to the, Board of Directors, to become effective upon
delivery or at any other date specified therein.

 

(b)       
The members of the Board Committee will appoint a Secretary who may, but need
not be, a member of the Board Committee.  The Board Committee may, in
writing, delegate some or all of its powers and responsibilities as specified in
Section 8.03(d) to any other person or entity.

 

(c)       
The Board Committee will hold meetings upon such notice, at such time or times,
and at such place or places as it may determine. The majority of the members of
the Board Committee at the time in office will constitute a quorum for the
transaction of business at all meetings and a majority vote of those present at
any meeting will be required for action. The Board Committee may also act by
written consent of a majority of its members.

 

-18-

ORYX ENERGY COMPANY

EXECUTIVE RETIREMENT PLAN

 

(d)       
The Board Committee will have the following powers and responsibilities:

 

(i)        
to prepare periodic administration reports to the Board of Directors which will
show, in reasonable detail, the administrative operations of the Plan;

 

(ii)       
to appoint and remove  the Plan Administrator;

 

(iii)              
to appoint and remove other administrative personnel; and

 

(iv)             
to designate, in its discretion, individuals as “Executives” and “Participants”
hereunder.

 

Determinations
made by the Board Committee shall be final and conclusive for all purposes.

 

8.04                
Plan Administrator.

(a)       The
Plan Administrator will be appointed by and serve at the pleasure of the Board
Committee. The Plan Administrator may resign by delivering a written resignation
to the Board Committee, to be effective on delivery or at any other date
specified therein. Upon the resignation or removal of the Plan Administrator, a
successor Plan Administrator will be appointed by the Board Committee.

 

(b)       
The Plan Administrator may, in writing, delegate some or all of his powers and
responsibilities as set forth in Section 8.04(c) to any other person or
entity.

 

(c)       
The Plan Administrator will adopt such rules for administration of the Plan as
he considers desirable, provided they do not conflict with the Plan. Records of
administration of the Plan will be kept, and Participants and their Spouses,
Beneficiaries and contingent annuitants may examine records pertaining directly
to themselves. The Plan Administrator will have the following powers and
responsibilities:

 

(i)        
to select and terminate an actuary for the Plan;

 

(ii)       
to establish and maintain claims review procedures;

 

(iii)      
the discretionary power to construe and interpret the Plan, correct defects,
supply omissions and reconcile inconsistencies to the extent necessary to
administer the Plan, with any instructions or interpretation of the Plan made in
good faith by the Plan Administrator to he final and conclusive for all
purposes;

 

-19-

ORYX ENERGY COMPANY

EXECUTIVE RETIREMENT PLAN

 

(iv)      
to comply with any requirements of ERISA with respect to filing reports with
governmental agencies;

 

(v)       
to provide Employees with any and all information required by ERISA;

 

(vi)      
to approve any actuarial assumptions;

 

(vii)     
to coordinate any necessary audit process with respect to reports on
administration data; and

 

(viii)     
to conduct routine-Plan administration.

 

8.05                
Employment of Agents. Persons administering the Plan may retain such
counsel, actuarial, medical, accounting, clerical and other services as they may
require to carry out the provisions and purposes of the Plan.

 

8.06                
Reliance on Reports and Certificates. Persons administering the Plan and
the officers and managers and Employees of the Company and any Affiliated
Company will be entitled to rely upon all tables, valuations, certificates and
reports furnished by any duly appointed actuary, insurance company, or by any
duly appointed accountant, and upon all opinions given by any duly appointed
legal counsel.

 

8.07                
Compensation. Persons administering the Plan will not receive any
compensation for their services as such.

 

8.08                
Abstention Required. No one may act, vote or otherwise influence a
decision -specifically relating ton his own participation under the Plan.

 

8.09                
Liability for Administration of Plan. In the administration of the Plan,
no person administering the Plan, nor any officer, director or employee of the
Company or any Affiliated Company or any of their agents will be liable jointly
or severally for any loss due to his or its error or acts of omission or
commission, except for his or its own individual misconduct.

 

In
the event and to the extent not insured against under any contract of insurance
with an insurance accompany, the Company shall indemnify and hold harmless each
“Indemnified Person,” as defined below, against any and all claims, demands,
suits, proceedings, losses, damages, interest, penalties, expenses (specifically
including, but not limited to counsel fees to the extent approved by the Board
Committee or otherwise provided by law, court costs and other reasonable
expenses of litigation), and liability of every kind, including amounts paid in
settlement, with the approval of the Board Committee, arising from any action or
cause of action  related to the Indemnified Person’s
act or acts

 

 

-20-

ORYX ENERGY COMPANY

EXECUTIVE RETIREMENT PLAN

 

or
failure to act. Such indemnity shall apply regardless of whether such claims,
demands, suits, proceedings, losses, damages, interest, penalties, expenses, and
liability arise in whole or in part from the negligence or other fault of the
Indemnified Person, except when the same is judicially determined to be due to
gross negligence, fraud, recklessness, willful or intentional misconduct of
such Indemnified Person. “Indemnified Person” shall mean each member of the
Board, the Board Committee, the Plan Administrator and each other Employee who
is allocated any responsibility hereunder.

 

 

-21-

ORYX ENERGY COMPANY

EXECUTIVE RETIREMENT PLAN

ARTICLE IX

GENERAL PROVISIONS

 

9.01                 
Right to Amend or Terminate. The Company expects and intends to continue
the Plan indefinitely, but necessarily reserves the right, by action of the
Board of Directors or its delegate, to amend, alter, suspend or terminate the
Plan in whole or in part, and at any time. The Plan may be amended,
retroactively, except that no amendment may reduce eliminate benefits that have
previously become payable under the Plan, nor benefits accrued as of a Change in
Control.

 

9.02                
Alienation of Benefits. Subject to Sections 9.03 and 9.09 below, no
benefits payable under the Plan will be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any
action by way of anticipating, alienating, selling, transferring, assigning,
pledging, encumbering or charging the same will be void and of no effect nor
will any such benefit be in any manner liable for or subject to the debts,
contracts, liabilities, engagements or torts of the person, entitled to such
benefit; provided, however, that benefits may be paid in accordance with a
qualified domestic relations order referred to in ERISA Section 514(b)(7).

 

9.03                
Payment to Minors and Incompetents.  If a Participant, Spouse,
contingent annuitant or Beneficiary entitled to receive any benefits hereunder
is a minor, or is deemed by the Plan Administrator or is adjudged to be legally
incapable of giving a valid receipt and discharge for such benefits, they will
be paid to the duly appointed guardian or committee of such minor or
incompetent, or they may be paid to such person or persons who the Plan
Administrator believes is or are caring for or supporting such minors or
incompetents.  Any such payments, to the extent thereof, will be a complete
discharge for the payment of such benefit.

 

9.04                
Unclaimed Benefits. If any benefit under the Plan had been payable to and
unclaimed by any person for a period of four years since the whereabouts or
existence of such person was last known to the Plan Administrator, the Plan
Administrator may direct that all rights of such person to payments accrued and
to future payments be terminated absolutely, provided that if such person
subsequently appears and identifies himself to the satisfaction of the Plan
Administrator, then the liability will be reinstated.

 

9.05                
Plan Voluntary.  The Plan is purely voluntary on the part of the
Company. Neither the establishment of the Plan, nor any amendment thereto, nor
the creation of any fund or account, nor the payment of any benefit will be
construed as conferring upon any Employee or Participant the right to be
retained in the employ of the Company or any Affiliated Company, and all
Employees and  Participants  will remain  subject  to
 discharge,  discipline or termination to the same extent as
if the Plan had never been established.

 

-22-

ORYX ENERGY COMPANY

EXECUTIVE RETIREMENT PLAN

 

9.06                
Gender. Whenever used herein, the masculine pronoun will include the
feminine and the singular the plural, unless a different meaning plainly
required by the context.

 

9.07                
Construction. The Plan will be construed, enforced and administered
according to the laws of the State of Texas, to the extent not preempted by
Federal law.  In the event any provision of the Plan is held illegal or
invalid for any reason, it will not affect the remaining provisions of the Plan,
but the Plan will be construed and enforced as if such illegal and invalid
provision had not been included therein.

 

9.08                
Funding.  This Plan is intended to be an unfunded plan within the
meaning of ERISA and the Internal Revenue Code.  All amounts paid under
this Plan shall be paid in cash from the general assets of the Company or such
other funding vehicle as the Board of Directors shall provide, provided,
however, that all assets paid into any funding vehicle hereunder shall at all
times prior to payment to a Participant, Beneficiary or Spouse remain subject to
the claims of general unsecured creditors of the Company. The benefits under the
Plan shall be reflected on the accounting records of the Company, but absent
action by the Board of Directors shall not be construed to create, or require
the creation of, a trust, custodial or escrow account, or other fund of any
kind.

 

No
Participant or any other person shall have any right, title, or interest
whatever in or to, or any preferred claim in or to, any investment reserves,
accounts, or funds that the Company may purchase, establish, or accumulate to
aid in providing the payments described in this Plan. Nothing contained in this
Plan, and no action taken pursuant to its provisions, shall create or be
construed to create a trust or a fiduciary relationship of any kind between the
Company and a Participant or any other person. Neither a Participant nor a
Beneficiary or Spouse shall acquire any interest in any assets of the Company or
in any investment reserves, accounts, or funds that the Company may purchase,
establish or accumulate for the purposes of paying benefits hereunder.

 

9.09                
Tax Withholding. The Company may withhold, or cause to be withheld from
or with respect to any benefit hereunder any federal state, or local taxes
required by law to be withheld with respect to such benefit and such sum as the
Company may reasonably estimate necessary to cover any taxes for which the
Company may be liable and which may be assessed with regard to such payment.

 

9.10                
Execution in Counterparts. This document may be executed in one or more
counterparts, each of which shall be considered an original, and all but one
instrument.

 

-23-

 ORYX
ENERGY COMPANY

EXECUTIVE
RETIREMENT PLAN

 

           
IN WITNESS WHEREOF, Oryx Energy Company has caused this Plan to be executed by
its duly authorized officer this 9th day of February, 1995.

 

 

                                                                                                    
     By:  _/s/  Frances G.
Heartwell         ___

 

                                                                                                       
  Title: _Director, Human Resources_____

 

 

ATTEST:

 

 

By: 
_/s/  William C. Lemmer___________

 

Title:
_VP, General Counsel and Secretary_

 

 

 

-24-

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