Document:

termsdoc08-c6.htm

     

     

     

    

      Exhibit
4.1

       

      CITIBANK
CREDIT CARD ISSUANCE TRUST

      

      Citiseries

      Class
2008-C6 Notes

      

      Issuer
Certificate

      Pursuant to Sections 202 and
301(h) of the Indenture

      

      Reference
is made to the Indenture, dated as of September 26, 2000, as amended by
Amendment No. 1 thereto dated as of November 14, 2001, each between Citibank
Credit Card Issuance Trust (the "Issuer") and Deutsche Bank Trust Company
Americas, as trustee (the "Indenture").  Capitalized terms used herein
that are not otherwise defined have the meanings set forth in the Indenture. All
references herein to designated Sections are to the designated Sections of the
Indenture.

      

      Section
301(h) provides that the Issuer may from time to time create a tranche of Notes
either by or pursuant to an Issuer Certificate setting forth the principal terms
thereof.  Pursuant to this Issuer Certificate, there is hereby created
a tranche of Notes having the following terms:

      

      Series
Designation:  Citiseries.  This series is included in
Group 1.

      

      Tranche
Designation:  $500,000,000  6.30% Class 2008-C6 Notes
of June 2012 (Legal Maturity Date June 2014) (hereinafter, the "Class 2008-C6
Notes")

      

      Currency:  The Class
2008-C6 Notes will be payable, and denominated, in Dollars.

      

      Denominations:  The
Class 2008-C6 Notes will be issuable in minimum denominations of $100,000 and
multiples of $1,000 in excess of that amount.

      

      Issuance Date:  June
25, 2008

      

      Initial Principal
Amount:  $500,000,000

      

      Issue
Price:  94.946%

      

      Original Issue
Discount:  The Class 2008-C6 Notes will be issued with more
than a de minimis
amount of original issue discount (OID) for federal income tax
purposes.

      

      Interest
Rate:  6.30% per annum, calculated on the basis of a 360-day
year of twelve 30-day months.

      

      Scheduled Interest Payment
Dates:  The 20th day of each June and December, beginning
December 2008.

      

      Each
payment of interest on the Class 2008-C6 Notes will include all interest accrued
from and including the preceding Interest Payment Date -- or, for the first
interest period, from and including the Issuance Date -- to and including the
day preceding the current Interest Payment Date, plus any interest accrued but
not previously paid.

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      The first
deposit targeted to be made to the Interest Funding sub-Account for the Class
2008-C6 Notes will be on the July 21, 2008 Interest Deposit Date and in an
amount equal to $2,187,500.00.

      

      Expected Principal Payment
Date:  June 20, 2012

      

      Legal Maturity
Date:  June 20, 2014

      

      Monthly Principal
Date:  For the month in which the Expected Principal Payment
Date occurs, June 20, 2012, and for each other month, the 20th day of such
month, or if such day is not a Business Day, the next following Business
Day.

      

      Required Subordinated Amount of Class
B Notes:  Not applicable.

      

      Required Subordinated Amount of Class
C Notes:  Not applicable.

      

      Controlled Accumulation
Amount:  Not applicable.

      

      Form of Notes:  The
Class 2008-C6 Notes will be issued as Global Notes.  The Global Notes
will initially be registered in the name of Cede & Co., as nominee of The
Depository Trust Company, and will be exchangeable for individual Notes only in
accordance with the provisions of Section 204(c).

      

      Additional Issuances of Class 2008-C6
Notes:  The Issuer may at any time and from time to time issue
additional Class 2008-C6 Notes, subject to the satisfaction of (i) the
conditions precedent set forth in Section 311(a) and (ii) the following
conditions:

      

      
        	
                 
      

              	
                (a)
      the Issuer has obtained written confirmation from each Rating Agency that
      there will be no Ratings Effect with respect to the then outstanding Class
      2008-C6 Notes as a result of the issuance of such additional Class 2008-C6
      Notes;

              

      

      

      
        	
                 
      

              	
                (b)
      as of the date of issuance of the additional Class 2008-C6 Notes, all
      amounts due and owing to the Holders of the then outstanding Class 2008-C6
      Notes have been paid and there is no Nominal Liquidation Amount Deficit
      with respect to the then outstanding Class 2008-C6
  Notes;

              

      

      

      
        	
                 
      

              	
                (c)
      the additional Class 2008-C6 Notes will be fungible with the original
      Class 2008-C6 Notes for federal income tax purposes;
  and

              

      

      

      
        	
                 
      

              	
                (d)
      if Holders of the then outstanding Class 2008-C6 Notes have benefit of a
      Derivative Agreement, the Issuer will have obtained a Derivative Agreement
      for the benefit of the Holders of the additional Class 2008-C6
      Notes.

              

      

      

      As of the
date of issuance of additional Class 2008-C6 Notes, the Outstanding Dollar
Principal Amount and Nominal Liquidation Amount of the Class 2008-C6 Notes will
be increased to reflect the Initial Dollar Principal Amount of the additional
Class 2008-C6 Notes.

      

      Any
outstanding Class 2008-C6 Notes and any additional Class 2008-C6 Notes will be
equally and ratably entitled to the benefits of the Indenture without
preference, priority or distinction.

      
        
           

        

        
           
2

          
            

          

        

        
           

        

      

      

      Optional Redemption Provisions other
than Section 1202 "Clean-Up Call":  None

      

      Additional Early Redemption Events or
changes to Early Redemption Events:  None

      

      Additional Events of Default or
changes to Events of Default:  None

      

      Business Day: means any day
other than (a) a Saturday or Sunday or (b) any other day on which national
banking associations or state banking institutions in New York, New York or
South Dakota, or any other state in which the principal executive offices of any
Additional Seller are located, are authorized or obligated by law, executive
order or governmental decree to be closed.

      

      Securities Exchange
Listing:  Application will be made to list the Class 2008-C6
Notes on the Irish Stock Exchange.

      

      Class C Reserve Account – Targeted
Deposits:

      

      For any
Due Period, the targeted deposit to the Class C Reserve sub-Account for the
Class 2008-C6 Notes pursuant to Sections 501(d) and 518(a) will be determined
with reference to the table below.  The left column of the table sets
forth the level of Surplus Finance Charge Collections, expressed as a percentage
of Principal Receivables in the Master Trust allocable to the Collateral
Certificate.  The right column sets forth the percentage of the
aggregate Outstanding Dollar Principal Amount of Notes of the Citiseries that,
when multiplied by the ratio which the Nominal Liquidation Amount of the Class
2008-C6 Notes bears to the aggregate Nominal Liquidation Amount of all Class C
Notes of the Citiseries, will be required to be deposited in the Class C Reserve
sub-Account.

      

      Percentage
of Surplus Finance
Charge                                           Percentage
of aggregate

      Collections,
averaged over
the                                                    
  Outstanding Dollar Principal Amount

      three most recent Due
Periods                                                       of Notes of the
Citiseries

      

            Greater
than
4.50%                                                                                    0%

      Between
4.50% and
4.01%                                                                   1.00%

      Between
4.00% and
3.51%                                                                         1.50%

      Between
3.50% and
2.51%                          
                                              2.50%

      Between
2.50% and
1.51%                                                                   4.00%

      Between
1.50% and
0.01%                                                                   6.00%

               0.00%
or
less                                                                            7.00%

      

      On each
Monthly Interest Date, the targeted deposit to the Class C Reserve sub-Account
for the Class 2008-C6 Notes will equal the Dollar amount, if any, determined
with reference to the table above minus (x) any amount then on
deposit in such Class C Reserve sub-Account (after giving effect to any
distributions in respect of the Class 2008-C6 Notes to be made from that
sub-Account on that date) and (y) the aggregate amount of distributions in
respect of the Class 2008-C6 Notes made from that sub-Account since the Issuance
Date.

      

      
        
           

        

        
           
3

          
            

          

        

        
           

        

      

      If an
Early Redemption Event or Event of Default occurs with respect to the Class
2008-C6 Notes, the targeted deposit to the Class C Reserve sub-Account for each
Monthly Interest Date occurring thereafter will be an amount equal to the
product of (a) the greater of (i) 7.00% of the aggregate Outstanding Dollar
Principal Amount of all Notes of the Citiseries and (ii) $4,500,000 and (b) the
ratio which the Nominal Liquidation Amount of the Class 2008-C6 Notes bears to
the aggregate Nominal Liquidation Amount of all Class C Notes of the Citiseries,
minus (x) any amount
then on deposit in such Class C Reserve sub-Account (after giving effect to any
distributions in respect of the Class 2008-C6 Notes to be made from that
sub-Account on that date) and (y) the aggregate amount of distributions in
respect of the Class 2008-C6 Notes made from that sub-Account since the Issuance
Date.

      

      If for
any Monthly Interest Date the targeted deposit to the Class C Reserve
sub-Account for the Class 2008-C6 Notes is a negative amount no deposit will be
made to such sub-Account, and a withdrawal from the Class C Reserve sub-Account
will be made in accordance with Section 519 in an amount equal to the lesser of
the absolute value of such negative amount and the amount then on deposit in
such sub-Account.

      

      
        
           

        

        
          4 

          
            

          

        

        
           

        

      

      The Class
2008-C6 Notes shall have such other terms as are set forth in the form of Note
attached hereto as Exhibit A.  Pursuant to Section 202, the form of
Note attached hereto has been approved by the Issuer.

      

      

      
        	 
      	
                CITIBANK
      CREDIT CARD ISSUANCE TRUST

              
	 
      	
                By    Citibank
      (South Dakota), National Association,

              
	 
      	
                as Managing
      Beneficiary

              
	 
      	 
      
	 
      	 
      
	 
      	 
      
	 
      	
                /s/ Douglas C.
      Morrison

                        ___________________________

              
	 
      	
                Douglas C.
    Morrison

              
	 
      	
                Vice
  President

              

      

      

      Dated:  June
25, 2008

      

      
        
           

        

        
            5

          
            

          

        

        
           

        

      

      Citiseries

       

      Class
2008-C6 Notes

      

      Reference
is made to the resolutions adopted by the Board of Directors of Citibank (South
Dakota), National Association ("Citibank (South Dakota)") on April 26, 2000, as
amended on September 25, 2001 and October 25, 2006. The resolutions authorize
Citibank (South Dakota) from time to time to issue and sell, or to arrange for
or participate in the issuance and sale of, one or more series and/or classes of
pass-through certificates, participation certificates, commercial paper, notes
or other securities representing ownership interests in, or backed by, pools of
credit card receivables or interests therein ("Receivables") in an aggregate
principal amount such that up to $125,000,000,000 of such certificates,
commercial paper, notes or securities are outstanding at any one time and to
sell, transfer, convey or assign Receivables to trusts or other special purpose
entities in connection therewith on such terms as to be determined by the
Citibank (South Dakota) Pricing and Loan Committee (the "Pricing and Loan
Committee").

      

      The
undersigned, a duly authorized member of the Pricing and Loan Committee, on
behalf of such Pricing and Loan Committee, does hereby certify that the terms of
the tranche of Notes set forth in and to be created by the preceding Issuer
Certificate and the increase in the Invested Amount of the Collateral
Certificate resulting from the issuance of such Notes have been approved by such
Pricing and Loan Committee. In addition, the following underwriting/selling
agent terms with respect to this tranche of Notes have been approved by such
Pricing and Loan Committee:

      

      Issue
Price:  94.946%

      

      Underwriting
Commission:  0.325%

      

      Proceeds
to Issuer:  94.621%

      

      Representative
of the Underwriters:  Citigroup Global Markets Inc.

      

      

      The
preceding Issuer Certificate and this certification of Pricing and Loan
Committee approval shall be, continuously from the time of their execution,
official records of Citibank (South Dakota).

      

      

      

      
        	
                /s/
      Douglas C. Morrison

                _____________________________

              
	
                Douglas
      C. Morrison

              
	
                Member
      of the Pricing and Loan Committee

              
	
                Citibank
      (South Dakota), National
Association

              

      

      

      

      Dated:  June
25, 2008

      
        
           

        

        
           
6

          
            

          

        

        
           

        

      

      Exhibit
A

      

      FORM
OF

      

      CITISERIES

      

      6.30%
CLASS 2008-C6 NOTES OF JUNE 2012

      (Legal
Maturity Date June 2014)

      

      

      
        	
                $500,000,000

              	 
      	
                REGISTERED

              
	
                CUSIP
      No. 17305E EL5

              	 
      	
                No.
      R-1

              

      

      

      UNLESS
THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED
IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC),
ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY
PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN.

      

      THE
PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN AND IN THE INDENTURE
REFERRED TO BELOW. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT
ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

      

      

      CITIBANK
CREDIT CARD ISSUANCE TRUST

      

      CITISERIES

      

      6.30%
CLASS 2008-C6 NOTES OF JUNE 2012

      (Legal
Maturity Date June 2014)

      

      

      CITIBANK
CREDIT CARD ISSUANCE TRUST, a trust formed and existing under the laws of the
State of Delaware (including any successor, the "Issuer"), for value received,
hereby promises to pay to CEDE & CO., or its registered assigns, the
principal amount of FIVE HUNDRED MILLION DOLLARS ($500,000,000).  The
Expected Principal Payment Date for this Note is June 20, 2012.  The
Legal Maturity Date for this Note is June 20, 2014.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      The
Issuer hereby promises to pay interest on this Note at the rate of 6.30% per
annum on the 20th day of each June and December, beginning December 2008, until
the principal of this Note is paid or made available for payment, subject to
certain limitations set forth in the Indenture.  Interest will accrue
on the principal amount of this Note outstanding on the preceding Interest
Payment Date (after giving effect to any payments of principal made on the
preceding Interest Payment Date), or with respect to the first Interest Payment
Date, the initial principal amount of this Note. Interest will accrue from June
25, 2008 and be computed on the basis of a 360-day year of twelve 30-day
months.

      

      If any
Interest Payment Date or Principal Payment Date of this Note falls on a day that
is not a Business Day, the required payment of interest or principal will be
made on the following Business Day.

      

      This Note
is one of the Citiseries, Class 2008-C6 Notes issued pursuant to the Indenture,
dated as of September 26, 2000 (as amended and otherwise modified from time to
time, the "Indenture") between the Issuer and Deutsche Bank Trust Company
Americas, as Trustee. For purposes of this Note, the term "Indenture" includes
any supplemental indenture or Issuer Certificate relating to the Citiseries,
Class 2008-C6 Notes. This Note is subject to all of the terms of the Indenture.
All terms used in this Note that are not otherwise defined herein and that are
defined in the Indenture will have the meanings assigned to them
therein.

      

      The
principal of and interest on this Note are payable in such coin or currency of
the United States of America as at the time of payment is legal tender for
payment of public and private debts.

      

      Each
Holder by acceptance of this Note, and each owner of a beneficial interest in
this Note by acceptance of a beneficial interest in this Note, is deemed to have
consented to such amendments to the Pooling and Servicing Agreement and other
operative documents as are necessary to permit the Seller to retain sale
treatment for accounting purposes of the transfer of assets to the Master Trust,
in accordance with the provisions of Financial Accounting Standards Board SFAS
No. 140.

      

      Reference
is made to the further provisions of this Note set forth on the reverse hereof,
which will have the same effect as though fully set forth on the face of this
Note.

      

      Unless
the certificate of authentication hereon has been executed by the Trustee whose
name appears below by manual signature, this Note will not

      
        
           

        

        
           
2

          
            

          

        

        
           

        

      

      be
entitled to any benefit under the Indenture, or be valid or obligatory for any
purpose.

      

      IN
WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or
in facsimile, by an Issuer Authorized Officer.

      

      
        	 
      	
                CITIBANK
      CREDIT CARD ISSUANCE TRUST

              
	 
      	 
      
	 
      	
                By:       CITIBANK
      (SOUTH DAKOTA),

              
	 
      	
                NATIONAL
      ASSOCIATION,

              
	 
      	
                as
      Managing Beneficiary of

              
	 
      	
                Citibank
      Credit Card Issuance Trust

              
	 
      	 
      
	 
      	 
      
	 
      	
                By:
      __________________________________

              
	 
      	
                Douglas C.
    Morrison

              
	 
      	
                Vice
  President

              

      

      

      Dated:  June
25, 2008

      

      

      

      

      TRUSTEE'S
CERTIFICATE OF AUTHENTICATION

      

      

      This is
one of the Notes designated above and referred to in the within mentioned
Indenture.

      

      

      
        	 
      	
                DEUTSCHE
      BANK TRUST COMPANY AMERICAS,

              
	 
      	
                as
      Trustee under the Indenture

              
	 
      	 
      
	 
      	 
      
	 
      	
                By:
      _________________________________

              
	 
      	
                Authorized
    Signatory

              

      

      

      Dated:  June
25, 2008

      

      

      

      

      
        
           

        

        
          3 

          
            

          

        

        
           

        

      

      REVERSE
OF NOTE

      

      This Note
is one of a duly authorized issue of Notes of the Issuer, designated as its
Citiseries 6.30% Class 2008-C6 Notes of June 2012 (Legal Maturity Date June
2014) (herein called the "Notes"), all issued under an Indenture, to which
Indenture reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Trustee and the Holders of the
Notes.

      

      This Note
ranks pari passu with all other Class C Notes of the same series, and this Note
is subordinated to all Class A Notes and Class B Notes of the same series, as
set forth in the Indenture. This Note is secured to the extent, and by the
collateral, described in the Indenture.

      

      The
Issuer will pay interest on overdue interest as set forth in the Indenture to
the extent lawful.

      

      Each
Holder by acceptance of this Note, and each owner of a beneficial interest in
this Note by acceptance of a beneficial interest in this Note, agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations
of the Issuer or the Trustee on the Notes, against the Issuer, the Issuer
Trustee, Citibank (South Dakota), the Trustee or any affiliate, officer,
employee or director of any of them, and the obligation of the Issuer to pay
principal of or interest on this Note or any other amount payable to the Holder
of this Note will be subject to Article V of the Indenture.

      

      Each
Holder by acceptance of this Note, and each owner of a beneficial interest in
this Note by acceptance of a beneficial interest in this Note, agrees that this
Note is intended to be debt of Citibank (South Dakota) for federal, state and
local income and franchise tax purposes, and agrees to treat this Note
accordingly for all such purposes, unless otherwise required by a taxing
authority.

      

      Each
Holder by acceptance of this Note, and each owner of a beneficial interest in
this Note by acceptance of a beneficial interest in this Note, agrees that it
will not at any time institute against the Issuer, or join in any institution
against the Issuer of, any bankruptcy, reorganization, arrangement, insolvency
or liquidation proceeding, or other proceedings under any United States federal
or state bankruptcy or similar law in connection with any obligations relating
to this Note, the Indenture or any Derivative Agreement.

      

      This Note
and the Indenture will be construed in accordance with and governed by the laws
of the State of New York.

      

      No
reference herein to the Indenture and no provision of this Note or of the
Indenture will alter or impair the obligation of the Issuer, which is absolute
and unconditional, to pay the principal of and interest on this Note at the
times, place and rate, and in the coin or currency, herein
prescribed.

      

      Certain
amendments may be made to the Indenture without the consent of the Holder of
this Note.  This Note must be surrendered for final payment of
principal and interest.

      

      

      
        
           

        

        
           
4

          
            

          

        

        
           

        

      

      ASSIGNMENT

      

      

      Social
Security or taxpayer I.D. or other identifying number of
assignee:____________________

      

      FOR VALUE
RECEIVED, the undersigned hereby sells, assigns and transfers unto

      

      ___________________________________________________________________

      

      ___________________________________________________________________

      (name and
address of assignee)

      

      the
within Note and all rights thereunder, and hereby irrevocably constitutes and
appoints __________________________________________________________, attorney,
to transfer said Note on the books kept for registration thereof, with full
power of substitution in the premises.

      

      Dated:  ____________________________

      

      _________________________*

      
        	
                 
      

              	
                Signature
      Guaranteed:

              

      

      

      

      

      

      ----------------

      *    NOTE:
The signature to this assignment must correspond with the name of the registered
owner as it appears on the face of the within Note in every particular without
alteration, enlargement or any change whatsoever.

      

       

       

       

       

      5amakerreward.htm

    
      

    

    Exhibit
10.1

    

    CWEI
AMAKER TIPPETT REWARD PLAN

    

    ARTICLE
I

    Purpose of
Plan

    

    1.1           Purpose
of Plan.  The purpose of
the Reward Plan (the “Plan”) is to reward eligible employees and other service
providers listed on Exhibit A of Clayton Williams Energy, Inc., and its
wholly-owned affiliates (the “Employer”) for continued quality service to the
Employer, and to encourage retention of those employees and service providers,
by providing them the opportunity to receive bonus payments that are based on
profits derived from a portion of the Employer’s working interest in certain
wells drilled by Employer in the Amaker Tippett area described on Exhibit
B.

    

    ARTICLE
II

    Definitions and
Construction

    

    2.1           Definitions.  Where the
following words and phases appear in the Plan, each will have the respective
meaning set forth below, unless the context clearly indicated to the
contrary.

    

    
      	
               
      

            	
              (a)

            	
              Acquisition
      Costs:  The portion of any costs or expenses incurred by
      the Employer that are attributable to acquiring the Well
      Interests.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Affiliate:  An
      “Affiliate” of any specified person means any other person, directly or
      indirectly, controlling or controlled by or under direct or indirect
      common control with such specified person.  For the purposes of
      this definition, “control” when used with respect to any person means the
      power to direct the management and policies of such person, directly or
      indirectly, through the ownership of voting securities, by contract or
      otherwise, and the terms “controlling” and “controlled” have meanings
      correlative to the foregoing.

            

    

    

    
      	
               
      

            	
              (c)

            	
              Agreed
      Rate:  3.88% per annum, compounded
    quarterly.

            

    

    

    
      	
               
      

            	
              (d)

            	
              Bonus
      Award:  The right granted to a Participant to receive
      payments, if any, under the terms and conditions of the
    Plan.

            

    

    

    
      	
               
      

            	
              (e)

            	
              Bonus
      Percentage:  The designated percentage set forth in each
      Participant’s Notice of Bonus Award that is used to calculate the amount
      of payments, if any, that such Participant may be entitled to under the
      Plan.

            

    

    

    
      	
               
      

            	
              (f)

            	
              Change
      of Control. A “Change of
      Control” will be deemed to occur as of (i) the date  any
      “person” or “group” of related persons (as such terms are used in Sections
      13(d) and 14(d) of the Exchange Act), other than one or more Permitted
      Holders, is or becomes the beneficial owner (as defined in Rules 13d-3 and
      13d-5 under the Exchange Act, except that such person or group shall be
      deemed to have “beneficial ownership” of all shares that any such person
      or group has the right to acquire, whether such right is exercisable
      immediately or only after the passage
of

            

    

    
      
        
           

          Amacker
Tippett Bonus Plan.doc

        

         

      

      
        1

        
          

        

      

      
         

      

    

    time),
directly or indirectly, of more than 35% of the total voting power of the Voting
Stock of the Company (or its successor by merger, consolidation or purchase of
all or substantially all of its assets) (for the purposes of this clause, such
person or group shall be deemed to beneficially own any Voting Stock of the
Company held by a parent entity,  if such person or group
“beneficially owns” (as defined above), directly or indirectly, more than 35% of
the voting power of the Voting Stock of the Company (or its successor by merger,
consolidation or purchase of all or substantially all of its assets) or its
parent entity and do not have the right or ability by voting power, contract or
otherwise to elect or designate for election a majority of the board of
directors of the Company (or such successor) or its parent entity, or (ii) the
date of death of Clayton W. Williams, Jr.

    

    
      	
               
      

            	
              (g)

            	
              Code:  The
      Internal Revenue Code of 1986, as amended from time to
    time.

            

    

    

    
      	
               
      

            	
              (h)

            	
              Committee: The Compensation
      Committee of the Company’s board of
directors.

            

    

    

    
      	
               
      

            	
              (i)

            	
              Company: Clayton Williams
      Energy, Inc.

            

    

    

    
      	
               
      

            	
              (j)

            	
              Effective
      Date: January 1,
      2007

            

    

    

    
      	
               
      

            	
              (k)

            	
              Eligible
      Person:  Each person who is employed by Employer or who
      performs services for the Employer as a consultant or independent
      contractor.

            

    

    

    
      	
               
      

            	
              (l)

            	
              Employer:  The
      Company and its wholly-owned
Affiliates.

            

    

    

    
      	
               
      

            	
              (m)

            	
              Exchange
      Act:  The Securities Exchange Act of 1934, as
      amended.

            

    

    

    
      	
               
      

            	
              (n)

            	
              Full
      Vesting Date:  May 5,
2013

            

    

    

    
      	
               
      

            	
              (o)

            	
              Notice
      of Bonus Award:  The notice provided to each Participant
      pursuant to Section 3.1, setting forth, among other things, the
      Participant’s Bonus Percentage under the
Plan.

            

    

    

    
      	
               
      

            	
              (p)

            	
              Participant: Each Eligible
      Person who has been granted a Bonus Award under the Plan and participates
      in the Plan in accordance with the provisions of Article
    III.

            

    

    

    
      	
               
      

            	
              (q)

            	
              Payment
      Date:  With respect to each Plan Quarter, the date that
      payment, if any, is made to eligible Participants pursuant to Article
      V.

            

    

    

    
      	
               
      

            	
              (r)

            	
              Permitted
      Assignee:  Each Participant’s spouse, parents, or natural
      or adoptive lineal descendants, or one or more trusts or partnerships
      established exclusively for the benefit of each Participant’s spouse,
      parents or natural or adoptive lineal
  descendants.

            

    

    
      
        
           

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              (s)

            	
              Permitted
      Holder:  Clayton W. Williams, Jr. and any Affiliate or
      Related Person thereof.

            

    

    

    
      	
               
      

            	
              (t)

            	
              Plan:  This
      CWEI Amaker Tippett Reward Plan, as amended from time to
    time.

            

    

    

    
      	
               
      

            	
              (u)

            	
              Plan
      Quarter:  Each calendar quarter within a Plan
      Year.

            

    

    

    
      	
               
      

            	
              (v)

            	
              Plan
      Year:  Each twelve consecutive month period beginning
      each January 1.

            

    

    

    
      	
               
      

            	
              (w)

            	
              Quarterly
      Bonus Amount:  This amount, if any, for each Participant
      with respect to each Plan Quarter that is calculated in accordance with
      the provisions of Section 4.3.

            

    

    

    
      	
               
      

            	
              (x)

            	
              Quarterly
      Bonus Pool:  The bonus pool, if any, determined as of the
      end of each Plan Quarter in accordance with the provisions of Article
      IV.

            

    

    

    
      	
               
      

            	
              (y)

            	
              Related
      Person:  With respect to any Permitted Holder, a “Related
      Person” means:

            

    

    

    (1)  any
controlling stockholder or a majority (or more) owned subsidiary of such
Permitted Holder or, in the case of an individual, any spouse, family member
(including adopted children), heir or descendant of such Permitted Holder, any
trust created for the benefit of such individual or such individual’s estate,
executor, administrator, committee or beneficiaries; or

    

    (2)  any
trust, corporation, partnership or other entity, the beneficiaries,
stockholders, owners or persons beneficially owning a majority (or more)
controlling interest of which consist of such Permitted Holder and/or such other
persons referred to in the immediately preceding clause (1).

    

    
      	
               
      

            	
              (z)

            	
              Sale
      Transaction:  A “Sale Transaction” will be deemed to
      occur on (1) any sale, exchange, or other disposition to a third party
      (excluding any Affiliate of the Employer) of (i) the Employer’s Well
      Interests or of the Employer’s rights or benefits with respect to the Well
      Interests, or (ii) all or substantially all of the Company’s assets, or
      (2) a Change of Control.

            

    

    

    
      	
               
      

            	
              (aa)

            	
              Voting
      Stock:  All classes of capital stock of a corporation
      then outstanding and normally entitled to vote in the election of
      directors.

            

    

    

    
      	
               
      

            	
              (bb)

            	
              Well:  A
      well drilled by the Employer in the area described on Exhibit A, provided
      that the well has a spud date on or after the Effective
    Date.

            

    

    

    
      	
               
      

            	
              (cc)

            	
              Well
      Costs:  The Employer’s share of costs pursuant to any
      operating agreement for the drilling, completing, equipping, deepening, or
      sidetracking the Well, including, without limitation: (i) the costs of
      surveying and staking the Well, the costs of any surface damages, and the
      costs of clearing, coring, testing, logging, and evaluating the Well; (ii)
      the costs of casing, cement, and cement services for the Well; (iii) the
      cost of plugging and abandoning the Well (including standard and customary
      radiation activities associated therewith), if it is determined
      that

            

    

    
      
        
           

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    the Well
would not produce in commercial  quantities and should be abandoned;
(iv) all direct charges and overhead chargeable to the Employer with respect to
the Well under any applicable operating agreement until such time as all
operations are carried out as required by applicable regulations and sound
engineering practices to make such Well ready for production, including such
charges and overhead attributable to the installation and testing of wellhead
equipment, or costs to plug and abandon a dry hole; (v) all costs incurred by
the Employer in recompleting or plugging back the Well; (vi)  all
costs incurred by the Employer in reworking the Well if the rework is covered by
an authority for expenditure under the applicable operating agreement; (vii) all
costs incurred by the Employer in locating, drilling, completing, equipping,
deepening, or sidetracking any enhanced recovery producer or injector Well
(including the costs of all necessary surface equipment such as steam
generators, compressors, water treating facilities, injection pumps, flow lines
and steam lines); and (viii) the costs of constructing production facilities,
pipelines and other facilities necessary to develop property acquired pursuant
to the terms  hereof and produce, collect, store, treat, deliver,
market, sell or otherwise dispose of oil, gas, and other hydrocarbons and
minerals therefrom; provided, that Well
Costs will not include any Acquisition Costs.

    

    
      	
               
      

            	
              (dd)

            	
              Well
      Interest:  7% of the Employer’s working interest in a
      Well.

            

    

    

    
      	
               
      

            	
              (ee)

            	
              Well
      Interest Profits:  As of the applicable measurement date,
      an amount equal to the cumulative cash proceeds earned by the Employer
      with respect to each Well Interests, minus the sum of (i) Well Costs and
      other expenses incurred by the Employer with respect to such Well
      Interests, plus (ii) an internal rate of return on such costs equal to the
      Agreed Rate.

            

    

    

    2.2           Number
and Gender.  The masculine gender, when used herein, includes
the feminine gender, and, unless context indicates otherwise, the singular
includes the plural and the plural the singular.

    

    2.3           Headings.  The
headings of Articles and Section herein are included solely for convenience, and
if there is any conflict between headings and the text of the Plan, the text
will control.  All references to Sections and Articles are to this
Plan unless otherwise indicated.

    
      
        
           

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    ARTICLE
III

    Participation

    

    3.1           Selection
of Participants and Grant of Bonus Awards.  The Committee, in
its sole discretion, may select which, if any, Eligible Persons will be granted
Bonus Awards and become Participants in the Plan. Each Participant's Bonus
Percentage will be determined by, and in the sole discretion of, the Committee.
Each Bonus Award granted to a Participant will be evidenced by a Notice of Bonus
Award that will specify (a) the Participant's Bonus Percentage, (b) the
Participant's effective date of Plan participation, and (c) such other terms and
provisions as the Committee may determine in its sole discretion.

    

    3.2           Commencement
of Participation.  Each Eligible Person will become a
Participant upon the effective date of Plan participation specified in his
Notice of Bonus Award, provided that such Eligible Person returns to the Company
an executed Notice of Bonus Award. Once an Eligible Person becomes a Participant
in the Plan, he will remain a Participant until his Plan participation
terminates in accordance with Section 3.3.

    

    3.3           Termination
of Participation.  A Participant's Plan participation will
terminate on the earliest to occur of the following:

    

    
      	
               
      

            	
              (a)

            	
              The
      date on which such Participant terminates employment or service with the
      Employer for any reason, but only if such termination date occurs prior to
      the Full Vesting Date; provided, however, that with respect to a
      Participant who is a consultant or independent contractor and who is not
      actively performing services for the Employer, such Participant will, for
      purposes of the Plan, be deemed to remain in the service of the Employer
      unless and until the Committee, in its sole discretion, determines that
      such service relationship has been
terminated;

            

    

    

    
      	
               
      

            	
              (b)

            	
              The
      date on which such Participant forfeits his Bonus Award after the Full
      Vesting Date pursuant to Section
6.2;

            

    

    

    
      	
               
      

            	
              (c)

            	
              The
      date of death of such Participant if there is no Permitted Assignee
      pursuant to Article VII; or

            

    

    

    
      	
               
      

            	
              (d)

            	
              The
      date of termination of the Plan or such Participant's Bonus Award pursuant
      to Article X.

            

    

    

    From and after the date a person's Plan
participation terminates, such person will not be entitled to receive any
payment under the Plan, pursuant to a Bonus Award or otherwise.

    

    ARTICLE
IV

    Quarterly Bonus Pool and
Quarterly Bonus Amounts

    

    4.1           Calculation
of Quarterly Bonus Pool.  As soon as administratively
practicable after the last day of each Plan Quarter, the Committee will
calculate the Quarterly Bonus Pool for such Plan Quarter in the following
manner:

    

    
      
        
           

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              (a)

            	
              If
      Well Interest Profits, determined as of the last day of the applicable
      Plan Quarter, equal a negative amount or zero, the Quarterly Bonus Pool
      for such Plan Quarter will be deemed to be equal to
  zero.

            

    

    

    
      	
               
      

            	
              (b)

            	
              If
      Well Interest Profits, determined as of the last day of the applicable
      Plan Quarter, equal an amount greater than zero, the Quarterly Bonus Pool
      for such Plan Quarter will be an amount equal to (i) Well Interest Profits
      determined as of the last day of such Plan Quarter, minus (ii) the sum of
      the Quarterly Bonus Pools for all preceding Plan Quarters (taking into
      account that a Quarterly Bonus Pool will be deemed to be equal to zero if
      it would otherwise be a negative
amount).

            

    

    

    4.2           Calculation
of Quarterly Bonus Pool in the Event of a Sale Transaction. In the event
a Sale Transaction occurs with respect to a Plan Quarter, the Quarterly Bonus
Pool for such Plan Quarter will be calculated in the manner described in Section
4.1, except that Well Interests Profits will be deemed to include the amount of
net sale proceeds from the Sale Transaction that the Committee, using any
reasonable method it deems appropriate, determines is attributable to the Well
Interests. In the event that the Sale Transaction does not result in the receipt
of any net sale proceeds (for example, a Change of Control), the Committee will
determine a deemed amount of net sale proceeds attributable to the Well
Interests, taking into account the relevant facts and circumstances and using
any reasonable method it deems appropriate.

    

    4.3           Calculation
of Participants' Quarterly Bonus Amounts. As soon as
administratively practicable after the last day of each Plan Quarter, the
Committee will calculate each Participant's Quarterly Bonus Amount for such Plan
Quarter, which will be an amount equal to the product of the Participant's Bonus
Percentage multiplied by the Quarterly Bonus Pool for such Plan Quarter (taking
into account that a Quarterly Bonus Pool will be deemed to be equal to zero if
it would otherwise be a negative amount).

    

    ARTICLE
V

    Payment of Quarterly Bonus
Amounts

    

    5.1     Payment
of Quarterly Bonus Amounts.  With respect to each Plan Quarter,
each Participant whose Plan participation has not terminated as of the Payment
Date for such Plan Quarter will be entitled to receive a payment, if any, equal
to one hundred percent (100%) of his Quarterly Bonus Amount for such Plan
Quarter. Such payment will be made by the Employer in cash in a single sum as
soon as administratively practicable following the last day of the applicable
Plan Quarter, but in no event later than two and one-half (2 1/2) months
following the last day of the Plan Year in which such Plan Quarter
ends.

    

    ARTICLE
VI

    Forfeiture of Bonus
Awards

    

    6.1           Forfeiture
of Bonus Award Prior to Full Vesting Date.  If a Participant's
Plan participation terminates in accordance with Section 3.3 prior to the Full
Vesting Date, such Participant's Bonus Award will be forfeited as of the date
that his Plan participation terminates. By way of example and not limitation, a
Participant who terminates employment with the Employer prior to the Full
Vesting Date will forfeit his Bonus Award as of the date of such termination of
employment.

    

    
      
        
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    6.2           Forfeiture
of Vested Bonus Award for Cause.  Each Participant will forfeit
his Bonus Award if such Participant:

    

    
      	
               
      

            	
              (a)

            	
              with
      respect to time periods during which such Participant is employed by or
      performing (or deemed to be performing) services for the Employer, (1)
      materially breaches the terms of his employment agreement or other
      services agreement with the Employer or any of its Affiliates, (2)
      materially breaches the terms of any corporate policy or code of conduct
      established by the Employer or any of its Affiliates, or (3) the
      Committee, in its sole discretion, determines that such Participant has
      engaged in gross negligence or willful misconduct in the performance of
      services for the Employer or any of its Affiliates, including, without
      limitation, a willful refusal without proper legal reason to perform his
      duties and responsibilities, or

            

    

    

    
      	
               
      

            	
              (b)

            	
              at
      any time, including time periods during which such Participant is not
      employed by or performing (or deemed to be performing) services for the
      Employer, (i) admits or enters a plea of no contest to or is convicted of
      a felony against the Employer or any of its Affiliates, (ii) materially
      breaches any provision of any agreement with the Employer or any of its
      Affiliates, or (iii) engages in dishonest or fraudulent conduct with
      respect to the business, reputation or affairs of the Employer or any of
      its Affiliates.

            

    

    

    The
forfeiture provisions of this Section 6.2 will apply regardless of whether a
Participant's employment or service relationship with the Employer was
terminated as a result of conduct described in subsections (a) or (b) above, and
regardless of whether such Participant continued Plan participation through the
Full Vesting Date.

    

    6.3           Forfeiture
of Bonus Award on Account of Participant's Death if No Permitted
Assignee.  A Participant
will forfeit his Bonus Award upon the Participant's date of death if the
Committee determines that the deceased Participant's Bonus Award was not
transferred to a Permitted Assignee pursuant to Article VII or that no Permitted
Assignee exists.

    

    6.4           Consequences
of Forfeiture of Bonus Award.  From and after the date a
Participant forfeits his Bonus Award, such person will not be entitled to
receive any payment under the Plan pursuant to a Bonus Award or
otherwise.

    
      
        
           

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    ARTICLE
VII

    Permitted Assignees of
Vested Bonus Award Upon Participant's Death

    

    7.1           Permitted Assignees of
Vested Bonus Award Upon Participant's Death.

    

    
      	
               
      

            	
              (a)

            	
              On
      or after the Full Vesting Date, all or any portion of each Participant's
      Bonus Award may be transferred, by operation of will or applicable law, to
      a Permitted Assignee upon such Participant's
  death.

            

    

    

    
      	
               
      

            	
              (b)

            	
              Each
      Permitted Assignee who is entitled to receive payments from the Plan under
      this Section 7.1, if any, will receive and hold only those rights and
      interests, and be subject to the same terms and conditions that would
      apply if such Permitted Assignee were a Participant in the Plan,
      including, without limitation, the restrictions on the transfer of a
      Participant's Bonus Award. As a condition to receipt of any rights and
      interests under this Section 7.1, a Permitted Assignee may be required to
      provide the Committee with any information necessary for the Committee to
      effect a transfer of such rights and interests, and to execute and deliver
      a written agreement with the Company agreeing to be bound by the terms of
      the Plan. Notwithstanding whether a Permitted Assignee has executed and
      delivered such an agreement, the acceptance of distributions from the Plan
      by a Permitted Assignee will be deemed to be an agreement by such
      Permitted Assignee to be bound by the Plan's
  terms.

            

    

    

    
      	
               
      

            	
              (c
      )

            	
              To
      the extent that a payment is made under the Plan to an individual who the
      Committee determines in good faith is a Permitted Assignee with respect to
      a deceased Participant's Bonus Award, any and all obligations with respect
      to such payment will be discharged and neither the Plan nor the Employer
      will have any obligation to another person claiming to be the
      Participant's Permitted Assignee with respect to such payment,
      notwithstanding any subsequent determination by the Committee, a court of
      law, or otherwise, that such payment was made based on a mistake of fact
      or a mistake of law.

            

    

    

    
      	
               
      

            	
              (d)

            	
              In
      the event that there is a dispute or uncertainty regarding the identity of
      the Permitted Assignee(s) to whom a deceased Participant's Bonus Award may
      have been transferred, the Committee will be permitted to retain any
      payment that would otherwise be payable with respect to such Bonus Award
      until the identity of such Permitted Assignee(s) can be determined. The
      amount of any such retained payment will be credited with interest at the
      Agreed Rate from the time such amount would otherwise be payable until the
      time such amount is paid. In addition, in the case of any bona fide
      dispute between parties concerning the right to a payment under the Plan,
      the Committee may, in its discretion, file an interpleader action in a
      court of competent jurisdiction, naming the parties to the dispute and, if
      applicable, may pay the disputed amount into the court to be distributed
      in accordance with the court's decision or take such other action as it
      determines, in its sole discretion, constitutes an appropriate way to
      resolve or otherwise settle the
dispute.

            

    

    
      
        
           

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    ARTICLE
VIII

    Administration

    

    8.1           Committee
Administration.  The Plan will be
administered by the Committee.

    

    8.2           Meetings.  The
Committee will hold meetings upon such notice and at such time and place as it
may from time to time determine. Notice to a member will not be required if
waived in writing by that member. A majority of the members of the Committee
duly appointed will constitute a quorum for the transaction of business. All
resolutions or other actions taken by the Committee at any meeting where a
quorum is present will be by vote of a majority of those present at such meeting
and entitled to vote. Resolutions may be adopted or other action taken without a
meeting upon written consent signed by all of the members of the Committee.
Members of the Committee may participate in meetings by means of telephone
conference or similar communication whereby all persons participating in the
meeting can hear and speak to each other.

    

    8.3           Discretion
to Interpret Plan.  The Committee has absolute discretion to
construe any and all provisions of the Plan, including, but not limited to, the
discretion to resolve ambiguities, inconsistencies, or omissions conclusively.
The decisions of the Committee upon all matters within the scope of its
authority will be binding and conclusive upon all persons.

    

    8.4           Powers
and Duties.  In addition to the powers described in Section 8.3
and all other powers specifically granted under the Plan, the Committee will
have all powers necessary or proper to administer the Plan and to discharge its
duties under the Plan, including, but not limited to, the following
powers:

    

    
      	
               
      

            	
              (a)

            	
              To
      make and enforce such rules, regulations, and procedures as it may deem
      necessary or proper for the orderly and efficient administration of the
      Plan;

            

    

    

    
      	
               
      

            	
              (b)

            	
              To
      enter into an agreement with any individual or entity to perform services
      with respect to the Plan;

            

    

    

    
      	
               
      

            	
              (
      c)

            	
              In
      its discretion, to interpret and decide all matters of fact in determining
      the amount of and authorizing payments with respect to Bonus Awards under
      the Plan, its interpretation and decision thereof to be final and
      conclusive on all persons claiming a right with respect to such Bonus
      Awards;

            

    

    

    
      	
               
      

            	
              (d)

            	
              In
      its discretion, to determine eligibility under the terms of the Plan, its
      determination thereof to be final and conclusive on all
      persons;

            

    

    

    
      	
               
      

            	
              (e)

            	
              To
      prepare and distribute information explaining the
  Plan;

            

    

    

    
      	
               
      

            	
              (f)

            	
              To
      obtain from the Employer and Participants (or the assignee of a
      Participant) such information as may be necessary for the proper
      administration of the Plan;

            

    

    

    
      	
               
      

            	
              (g)

            	
              To
      sue or cause suit to be brought in the name of the Plan;
    and

            

    

    

    
      
        
           

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              (h)

            	
              To
      establish a claims procedure and any other procedures for implementation
      of the Plan.

            

    

    

    8.5           Expenses.  The
Employer will pay the reasonable expenses incident to the administration of the
Plan, including, but not limited to, the compensation of any legal counsel,
advisors, or other technical or clerical assistance as may be required; the
payment of any bond or security required by applicable law; and any other
expenses incidental to the operation of the Plan that the Committee determines
are proper.

    

    8.6           Reliance
on Reports, Certificates, and Participant Information.  The
Committee is entitled to rely conclusively upon all tables, valuations,
certificates, opinions, and reports furnished by an actuary, accountant,
controller, counsel, insurance company, or other person who is employed or
engaged for such purposes. Moreover, the Committee will be entitled to rely upon
information furnished to the Committee or the Employer by a Participant (or a
Permitted Assignee), including, but not limited to, such person's current
mailing address.

    

    8.7           Right to
Delegate.  The Committee, in its sole discretion, may delegate
to one or more employees or agents of the Employer its day-to-day ministerial
duties and powers (but only its day-to-day ministerial duties and powers) under
the Plan.

    

    8.8           Indemnification.  The
Company will indemnify and hold harmless each member of the Committee, and each
employee or agent of the Employer who is a delegate of the Committee, against
any and all expenses and liabilities arising out of such individual's
administrative functions or other responsibilities, including, but not limited
to, any expenses and liabilities that are caused by or result from an act or
omission constituting the negligence of such individual in the performance of
such functions or responsibilities, but excluding expenses and liabilities
arising out of such individual's own gross negligence or willful misconduct.
Expenses against which such person will be indemnified hereunder include, but
are not limited to, the amounts of any settlement, judgment, costs, counsel
fees, and related charges reasonably incurred in connection with a claim
asserted or a proceeding brought. Notwithstanding the foregoing provisions of
this Section, this Section will not apply to, and the Company will not indemnify
against, any expense that was incurred without the consent or approval of the
Company, unless such consent or approval has been waived in writing by the
Company.

    

    ARTICLE
IX

    Nature of the
Plan

    

    9.1           Unfunded,
Unsecured Plan.  The Plan will constitute an unfunded,
unsecured obligation of the Employer to make payments of incentive rewards to
certain persons from its general assets in accordance with the Plan. Each Bonus
Award granted under the Plan merely constitutes a mechanism for measuring such
incentive compensation and does not constitute any property right or interest in
the Company or any of its Affiliates, or in the Well or the Well Interest.
Neither the establishment of the Plan, the granting of Bonus Awards, nor any
other action taken in connection with the Plan will be deemed to create an
escrow or trust fund of any kind.

    
      
        
           

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    9.2           No Rights
of Participant.  No Participant will have any security or other
interest in any assets of the Employer or any of its Affiliates as a result of a
Bonus Award. Further, no Participant will have any right to receive a property
interest in the Well or the Well Interest. Participants and all persons claiming
under Participants (including Permitted Assignees) will rely solely on the
unsecured promise of the Employer set forth herein, and nothing in the Plan or a
Notice of Bonus Award will be construed to give a Participant or anyone claiming
under a Participant (including a Permitted Assignee) any right, title, interest,
or claim in or to any specific asset, fund, entity, reserve, account, or
property of any kind whatsoever owned by the Employer or any of its Affiliates,
or in which any such entity may have an interest now or in the future, and each
Participant will have the right to enforce any claim hereunder only in the same
manner as a general creditor. Neither the establishment of the Plan nor the
granting of any Bonus Award will create any right in any Participant to make any
decision, or provide input with respect to any decision, relating to the
business of the Employer or any of its Affiliates.

    

    ARTICLE
X

    Amendment and
Termination

    

    10.1           Amendment
of Plan.  Notwithstanding any provision of any other
communication, either oral or written, made by the Employer or any of its
Affiliates, the Committee, or any other individual or entity to Eligible Persons
or to any other individual or entity, the Company reserves the absolute and
unconditional right to amend the Plan from time to time. All amendments to the
Plan will be in writing, and any oral statements or representations made by the
Employer or any of its Affiliates, the Committee, or any other individual or
entity that alter, modify, amend, or are inconsistent with the written terms of
the Plan will be invalid and unenforceable and may not be relied upon by any
Eligible Person, Permitted Assignee, service provider, or other individual or
entity. All amendments will be executed by such person or persons as the Company
in its discretion authorizes.

    

    10.2           Right to
Terminate.  Notwithstanding any provision of any other
communication, either oral or written, made by the Employer or any of its
Affiliates, the Committee, or any other individual or entity to any Eligible
Person, Permitted Assignee, service provider, or other individual or entity, the
Company reserves the absolute and unconditional right to terminate the Plan, in
whole or in part, and to terminate the Bonus Awards of some or all Participants
and each Permitted Assignee of such Participants, with such termination to be
effective as of the date selected by the Company in its sole
discretion.

    

    10.3           Effect of
Termination.  In the event of a termination of the Plan or a
termination of the Bonus Award with respect to one or more Participants pursuant
to Section 10.2, each such affected Participant (or his Permitted Assignee(s))
will receive a final payment under the Plan reflecting such Participant's Bonus
Award as of the date of such termination. The Committee will determine, in its
sole discretion and using any reasonable method and manner which it deems
appropriate, the final payment amount that each Participant (or his Permitted
Assignee(s)) is entitled to upon such termination, taking into account, in the
manner it deems appropriate, such information which is available to the
Committee as of the date that it makes its determination. A final payment
pursuant to this Section 10.3 will be distributed to a Participant (or his
Permitted Assignee(s)) as soon as administratively practicable after such
termination and in no event later than two and one-half (2 1/2) months following
the last day of the Plan Year in which such termination occurs; provided,
however, that, notwithstanding the foregoing to the contrary, to the extent that
such termination and final payment would be subject to section 409A of the
Code,

    
      
        
           

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    such
termination and final payment will be made in accordance with the applicable
requirements of section 409A of the Code and the authority
thereunder.

    

    ARTICLE
XI

    General
Provisions

    

    11.1           No
Guarantee of Employment.  Nothing contained in the Plan will
grant any Eligible Person, or other individual who is an employee of the
Employer or any of its Affiliates, or who otherwise performs services for the
Employer or any of its Affiliates, the right to be retained in the service of
the Employer or any of its Affiliates, nor will anything contained in the Plan
limit in any way the right of the Employer or any of its Affiliates to discharge
or terminate the service of any individual, including an Eligible Person, at any
time, without regard to the effect such discharge or termination may have on any
of such individual's rights under the Plan.

    

    11.2           Withholding.  The
Employer will at all times be entitled with respect to a payment due under the
Plan: (a) to withhold, or cause to be withheld, from such payment to a
Participant (or Permitted Assignee), or from any other payment to such
Participant (or Permitted Assignee), an amount necessary to satisfy any and all
tax withholding obligations or other deductions with respect to any wages or
other payments made to a Participant (or Permitted Assignee), which arise under
applicable law or are authorized by the Participant (or Permitted Assignee), and
(b) to take any other action as may in its opinion be necessary to satisfy all
obligations for the payment of such taxes or such other deductions.

    

    11.3           Offset of
Amounts Owed to the Employer. Whenever a Participant (or
Permitted Assignee) would be otherwise due any payment pursuant to the Plan, the
Employer will be entitled to deduct from such payment any amounts that the
Participant (or Permitted Assignee) owes the Employer or any of its Affiliates,
including, without limitation, overpayments made under the Plan to either the
Participant or a Permitted Assignee, before payment of such amount to such
Participant (or Permitted Assignee).

    

    11.4           Agreement
to be Bound by Plan.  Through the
acceptance of payments pursuant to the Plan, each Participant agrees to be bound
by the terms and conditions of the Plan.

    

    11.5           Nonalienation of
Benefits.

    

    
      	
               
      

            	
              (a)

            	
              Except
      as provided in Section 7.1, Section 11.3, and Section 11.5(b), or as the
      Committee may otherwise permit, in writing, in its sole discretion, no
      interest in or benefit payable under the Plan will be subject in any
      manner to anticipation, alienation, sale, transfer, assignment, pledge,
      encumbrance, or charge, and any action by a Participant to anticipate,
      alienate, sell, transfer, assign, pledge, encumber, or charge the same
      will be void and of no effect; nor will any interest in or benefit payable
      under the Plan be in any way subject to any legal or equitable process,
      including, but not limited to, garnishment, attachment, levy, seizure, or
      the lien of any person. This provision will be construed to provide each
      Participant, or other person claiming any interest or benefit in the Plan
      through a Participant, with the maximum protection afforded such
      Participant's interest in the Plan (and the benefits provided thereunder)
      by law against alienation, encumbrance, and any legal and equitable
      process, including, but not limited to, attachment, garnishment, levy,
      seizure, or other lien.

            

    

    
      
        
           

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              (b)

            	
              Notwithstanding
      Section 11.5(a), the Committee will comply with the terms and provisions
      of a "qualified domestic relations order" as defined in section 414(p) of
      the Code.

            

    

    

    11.6           Unknown
Whereabouts.  It will be the affirmative duty of each
Participant (and Permitted Assignee) to inform the Committee of, and to keep on
file with the Committee, his current mailing address. If a Participant (or
Permitted Assignee) fails to inform the Committee of his current mailing
address, neither the Committee, the Employer, or any Affiliate will be
responsible for any late payment or loss of benefits or for failure of any
notice to be provided or provided timely under the terms of the Plan to such
Participant (or Permitted Assignee).

    

    11.7           Code
Section 409A.  To the extent that the Plan is (or becomes)
subject to Code section 409A, or any successor provision, as amended from time
to time, the Committee may at all times interpret and construe the Plan's terms
to conform and comply with the requirements of Code section 409A (or any
successor provision). Further, notwithstanding any other provision of the Plan
to the contrary, the Committee retains the right to amend the Plan to conform
and comply with the requirements of Code section 409A (or any successor
provision).

    

    11.8           Jurisdiction.  Except
to the extent that any federal law applies to the Plan and preempts state law,
the Plan and all actions arising out of or in connection with the Plan shall be
governed by and construed, enforced, and administered according to the laws of
the state of Texas, without regard to the conflict of law provisions of the
State of Texas or of any other state or jurisdiction.

    

    11.9           Severability.  In
case any provision of the Plan is held to be illegal, invalid, or unenforceable
for any reason, such illegal, invalid, or unenforceable provision will not
affect the remaining provisions of the Plan, but the Plan will be construed and
enforced as if such illegal, invalid, or unenforceable provision had not been
included therein.

    

    11.10         Successors.  The
rights and obligations of the Company hereunder shall be binding upon and inure
to the benefit of the Company and its successors and assigns.

    

    
      
        
           

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    EXECUTED
the 19th day of June, 2008 to be effective the 1st day of
January, 2007.

    

    

    
      	 
      	 
      	
              CLAYTON
      WILLIAMS ENERGY, INC.

            

    

    

     

    
      	 
      	 
      	
              By:

            	/s/  L.
      Paul Latham  
	 
      	 
      	 
      	
              L.
      Paul Latham

            
	 
      	 
      	 
      	
              Executive
      Vice President

            
	 
      	 
      	 
      	 
      

    

    

    

    
      
        
           

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    EXHIBIT
A

    Schedule
of Participants

    

    
      	 
      	 
      	
              Total

            
	 
      	 
      	
              %

            
	
              Williams

            	
              Clayton

            	
              28.5714%

            
	
              Latham

            	
              Paul

            	
              7.1428%

            
	
              Riggs

            	
              Mel

            	
              7.1428%

            
	
              Lyssy

            	
              Sam

            	
              6.4286%

            
	
              Shultz

            	
              Jeff

            	
              3.5714%

            
	
              Pullin

            	
              Cash

            	
              0.7143%

            
	
              Welborn

            	
              Greg

            	
              2.1428%

            
	
              Uzzell

            	
              Ed

            	
              1.4286%

            
	
              Howard

            	
              Randy

            	
              3.5714%

            
	
              Madrid

            	
              Armando

            	
              4.2857%

            
	
              Newton

            	
              Robert

            	
              3.5714%

            
	
              Brock

            	
              Danny

            	
              1.4286%

            
	
              Gasser

            	
              Ron

            	
              3.5714%

            
	
              Swierc

            	
              Matt

            	
              2.1428%

            
	
              Williams

            	
              Clayton
      Wade

            	
              0.7143%

            
	
              Kennedy

            	
              John

            	
              6.4286%

            
	
              Grafe

            	
              David

            	
              2.1429%

            
	
              Fincher

            	
              Matt

            	
              2.1429%

            
	
              Heimreich

            	
              Andrew

            	
              2.1429%

            
	
              Pollard

            	
              Mike

            	
              2.2500%

            
	
              Schwope

            	
              Kathy

            	
              0.5714%

            
	
              Thomas

            	
              Robert

            	
              1.1429%

            
	
              Alford

            	
              Danny

            	
              1.1429%

            
	
              Hamilton

            	
              Janet

            	
              0.7500%

            
	
              Smith

            	
              Mark

            	
              0.5714%

            
	
              Peacock

            	
              Ray

            	
              0.3571%

            
	
              Beebe

            	
              Willson

            	
              0.3571%

            
	
              Tisdale

            	
              Mark

            	
              0.8929%

            
	
              Polson

            	
              Dennis

            	
              0.8929%

            
	
              Pruitt

            	
              Donnie

            	
              0.7143%

            
	
              Jones

            	
              Kim

            	
              0.7143%

            
	
              Kelly

            	
              Denise

            	
              0.1786%

            
	
              Roome

            	
              Joe

            	
              0.1786%

            
	 
      	 
      	 
      
	 
      	
              Total

            	
              100.0000%

            

    

    
      
        
           

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    EXHIBIT
B

    

    

    [Exhibit
B consists of three maps depicting various leases held by the Employer in Upton
County, Texas.]

    

     

     

     

     

     

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    16

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