Document:

Exhibit 10.1

                                 FIRST AMENDMENT

                                       TO

                      AMENDED AND RESTATED CREDIT AGREEMENT

            First Amendment, dated as of February 14, 2003 (this "Amendment"),
to the Amended and Restated Credit Agreement, dated as of January 14, 2003 (the
"Credit Agreement"), by and among KCS ENERGY, INC., a Delaware corporation (the
"Borrower"), the lenders from time to time party hereto (each a "Lender" and
collectively, the "Lenders"), FOOTHILL CAPITAL CORPORATION, a California
corporation ("Foothill"), as collateral agent for the Lenders (in such capacity,
together with any successor collateral agent, the "Collateral Agent"), Foothill,
as administrative agent for the Lenders (in such capacity, together with any
successor administrative agent, the "Administrative Agent"; and together with
the Collateral Agent, each an "Agent" and collectively, the "Agents"), and
HIGHBRIDGE/ZWIRN SPECIAL OPPORTUNITIES FUND, L.P., a Delaware limited
partnership ("Highbridge"), as lead arranger.

            The Borrower and the Required Lenders desire to amend Section
5.04(f) of the Credit Agreement as hereinafter set forth.

            Accordingly, the Borrower and the Required Lenders hereby agree as
follows:

                  1. Conditions Subsequent. (a) Clause (f) of Section 5.04 of
the Credit Agreement is hereby amended and restated in its entirety to read as
follows:

                  "(f) The Borrower shall use commercially reasonable efforts to
      deliver or cause to be delivered to the Collateral Agent a landlord
      waiver, in form and substance satisfactory to the Collateral Agent, with
      respect to the Borrower's and its Subsidiaries' principal offices."

                  (b) Subclause (i) of Section 5.04(c) of the Credit Agreement
is hereby amended and restated in its entirety to read as follows:

                  "(i) With respect to those Oil and Gas Properties subject to a
      Production Payment 2001 Lien for which a title opinion has previously been
      furnished to counsel for the Lenders, within 30 days following the
      Effective Date; provided, however, with respect to such Oil and Gas
      Properties that are located in counties in the State of Michigan, such
      opinions shall be delivered on or prior to March 10, 2003."

                  2. Continued Effectiveness of Credit Agreement. The Borrower
hereby (i) confirms and agrees that each Loan Document to which it is a party
is, and shall continue to be, in full force and effect and is hereby ratified
and confirmed in all respects except that on and after the date hereof all
references in any such Loan Document to "the Credit Agreement", "thereto",
"thereof", "thereunder" or words of like import referring to the Credit

<PAGE>

Agreement shall mean the Credit Agreement as amended by this Amendment, and (ii)
confirms and agrees that to the extent that any such Loan Document purports to
assign or pledge to the Collateral Agent, or to grant to the Collateral Agent a
security interest in or lien on, any collateral as security for the Obligations
of the Borrower from time to time existing in respect of the Credit Agreement
and the Loan Documents, such pledge, assignment and/or grant of the security
interest or lien is hereby ratified and confirmed in all respects.

                  3. Miscellaneous.

                  (a) This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which shall be deemed to be an original, but all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of
this Amendment by telefacsimile shall be equally as effective as delivery of an
original executed counterpart of this Amendment.

                  (b) Section and paragraph headings herein are included for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

                  (c) This Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                     - 2 -
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be executed by their respective officers thereunto duly authorized as of the day
and year first above written.

                                    KCS ENERGY, INC.

                                    By: /s/ Frederick Dwyer
                                    --------------------------------------------
                                    Name: Frederick Dwyer
                                    Title: Vice President

                                    FOOTHILL CAPITAL CORPORATION

                                    By: /s/ Teresa M. Bolick
                                    --------------------------------------------
                                    Name: Teresa M. Bolick
                                    Title: Vice President

                                    HIGHBRIDGE/ZWIRN SPECIAL
                                    OPPORTUNITIES FUND, L.P.

                                    By: Highbridge/Zwirn Capital Management, LLC

                                    By: /s/ Daniel B. Zwirn
                                    --------------------------------------------
                                    Name: Daniel B. Zwirn
                                    Title: Managing Principal

                                    ABLECO FINANCE LLC

                                    By: /s/ Kevin Genda
                                    --------------------------------------------
                                    Name: Kevin Genda
                                    Title: SVP/Chief Credit Officer

                                SECOND AMENDMENT

                                       TO

                      AMENDED AND RESTATED CREDIT AGREEMENT

     Second  Amendment,  dated as of March 6, 2003  (this  "Amendment"),  to the
                                                            ---------
Amended and Restated Credit Agreement,  dated as of January 14, 2003 (as amended
to date,  the "Credit  Agreement"),  by and among KCS ENERGY,  INC.,  a Delaware
               -----------------
corporation (the "Borrower"), the lenders from time to time party hereto (each a
                  --------
"Lender" and  collectively,  the "Lenders"),  FOOTHILL  CAPITAL  CORPORATION,  a
 ------                           -------
California  corporation  ("Foothill"),  as collateral  agent for the Lenders (in
                           --------
such capacity,  together with any successor  collateral  agent,  the "Collateral
                                                                      ----------
Agent"),  Foothill,  as administrative  agent for the Lenders (in such capacity,
-----
together with any successor  administrative  agent, the "Administrative  Agent";
                                                         ---------------------
and together with the Collateral Agent,  each an "Agent" and  collectively,  the
                                                  -----
"Agents"),  and  HIGHBRIDGE/ZWIRN  SPECIAL  OPPORTUNITIES FUND, L.P., a Delaware
 ------
limited partnership ("Highbridge"), as lead arranger.

     The Borrower  and the  Required  Lenders  desire to further  amend  Section
5.04(c) of the Credit Agreement as hereinafter set forth.

     Accordingly, the Borrower and the Required Lenders hereby agree as follows:

     1.  Conditions  Subsequent.  Subclause (i) of Section 5.04(c) of the Credit
         ----------------------
Agreement is hereby amended and restated in its entirety to read as follows:

          "(i)  With  respect  to  those  Oil and Gas  Properties  subject  to a
     Production  Payment 2001 Lien for which a title opinion has previously been
     furnished  to  counsel  for  the  Lenders,  within  30 days  following  the
     Effective  Date;  provided,  however,  with  respect  to  such  Oil and Gas
     Properties  that are  located in counties  in the State of  Michigan,  such
     opinions shall be delivered on or prior to April 15, 2003."

     2. Continued  Effectiveness  of Credit  Agreement.  The Borrower hereby (i)
        ----------------------------------------------
confirms and agrees that each Loan Document to which it is a party is, and shall
continue to be, in full force and effect and is hereby ratified and confirmed in
all respects except that on and after the date hereof all references in any such
Loan Document to "the Credit Agreement",  "thereto", "thereof",  "thereunder" or
words of like import  referring  to the Credit  Agreement  shall mean the Credit
Agreement as amended by this Amendment, and (ii) confirms and agrees that to the
extent  that  any such  Loan  Document  purports  to  assign  or  pledge  to the
Collateral  Agent, or to grant to the Collateral Agent a security interest in or
lien on, any  collateral  as security for the  Obligations  of the Borrower from
time to time existing in respect of the Credit Agreement and the Loan Documents,
such pledge,  assignment and/or grant of the security interest or lien is hereby
ratified and confirmed in all respects.

     3. Miscellaneous.
        -------------
          (a) This Amendment may be executed in any number of  counterparts  and
     by different parties hereto in separate  counterparts,  each of which shall
     be  deemed  to be an  original,  but  all of  which  taken  together  shall
     constitute one and the same agreement.  Delivery of an executed counterpart
     of this  Amendment  by  telefacsimile  shall be  equally  as  effective  as
     delivery of an original executed counterpart of this Amendment.

          (b) Section and paragraph headings herein are included for convenience
     of reference only and shall not constitute a part of this Amendment for any
     other purpose.

          (c) This  Amendment  shall be governed by, and construed in accordance
     with, the laws of the State of New York.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

          IN WITNESS  WHEREOF,  the parties hereto have caused this Amendment to
     be executed by their  respective  officers  thereunto duly authorized as of
     the day and year first above written.

                             KCS ENERGY, INC.

                             By:  /s/  Frederick Dwyer
                                  --------------------------------------------
                             Name:  Frederick Dwyer
                             Title: Vice President

                             FOOTHILL CAPITAL CORPORATION

                             By:  /s/  Teresa M. Bolick
                                  --------------------------------------------
                             Name:   Teresa M. Bolick
                             Title:  Vice President

                             HIGHBRIDGE/ZWIRN SPECIAL OPPORTUNITIES FUND, L.P.
                             By:  Highbridge/Zwirn Capital Management, LLC

                             By: /s/ Daniel B. Zwirn
                                  --------------------------------------------
                             Name:  Daniel B. Zwirn
                             Title: Managing Principal

                             ABLECO FINANCE LLC

                             By:  /s/ Kevin Genda
                                  --------------------------------------------
                             Name:  Kevin Genda
                             Title: SVP/Chief Credit Officer

                                 THIRD AMENDMENT

                                       TO

                      AMENDED AND RESTATED CREDIT AGREEMENT

            Third Amendment, dated as of June 30, 2003 (this "Amendment"), to
the Amended and Restated Credit Agreement, dated as of January 14, 2003 (as
amended to date, "Credit Agreement"), by and among KCS ENERGY, INC., a Delaware
corporation (the "Borrower"), the lenders from time to time party thereto (each
a "Lender" and collectively, the "Lenders"), WELLS FARGO FOOTHILL, INC., a
California corporation, formerly known as Foothill Capital Corporation
("Foothill"), as collateral agent for the Lenders (in such capacity, together
with any successor collateral agent, the "Collateral Agent"), Foothill, as
administrative agent for the Lenders (in such capacity, together with any
successor administrative agent, the "Administrative Agent"; and together with
the Collateral Agent, each an "Agent" and collectively, the "Agents"), and
HIGHBRIDGE/ZWIRN SPECIAL OPPORTUNITIES FUND, L.P., a Delaware limited
partnership ("Highbridge"), as lead arranger.

            The Borrower and the Required Lenders desire to amend the definition
of "Consolidated Funded Indebtedness" and Section 7.02(g) of the Credit
Agreement as hereinafter set forth.

            Accordingly, the Borrower and the Required Lenders hereby agree as
follows:

                  1. Definitions in Amendment. Any capitalized term used herein
and not defined shall have the meaning assigned to it in the Credit Agreement.

                  2. Definition of Consolidated Funded Indebtedness. The
definition of Consolidated Funded Indebtedness in Section 1.01 of the Credit
Agreement is hereby amended and restated in its entirety to read as follows:

                  "'Consolidated Funded Indebtedness' means, with respect to any
Person at any date, all Indebtedness of such Person, determined on a
consolidated basis in accordance with GAAP, which by its terms matures more than
one year after the date of calculation, and any such Indebtedness maturing
within one year from such date which is renewable or extendable at the option of
such Person to a date more than one year from such date, including, in any
event, but without duplication, with respect to the Borrower and its
Subsidiaries, the Revolving Loans and the amount of their Capital Lease
Obligations and excluding the Production Payment 2001 Obligations, the Takeout
VPP Obligations, any unrealized losses with respect to liabilities and

<PAGE>

obligations under Hedging Agreements, and Indebtedness constituting asset
retirement obligations pursuant to FASB Statement No. 143."

                  3. Capital Expenditures. Clause (i) of Section 7.02(g) of the
Credit Agreement is hereby amended by deleting the reference to the amount
"$54,500,000" and inserting in lieu thereof the amount "$65,000,000".

                  4. Conditions Precedent. This Amendment shall become effective
only upon satisfaction in full of the following conditions precedent (the first
date upon which all such conditions have been satisfied being herein called the
"Amendment Effective Date"):

                  (a) The representations and warranties contained in Article VI
of the Credit Agreement and each other Loan Document shall be correct on and as
of the Amendment Effective Date as though made on and as of such date (except
where such representations and warranties relate to an earlier date in which
case such representations and warranties shall be true and correct as of such
earlier date); and no Event of Default shall have occurred and be continuing on
the Amendment Effective Date or result from this Amendment becoming effective in
accordance with its terms.

                  (b) The Administrative Agent shall have received counterparts
of this Amendment which bear the signatures of the Borrower and the Required
Lenders.

                  (c) The Borrower shall have paid to the Administrative Agent,
for the benefit of the Lenders, in immediately available funds, a non-refundable
fee, fully earned on the date hereof, equal to $45,000, which amount may be
charged to the Loan Account.

                  5. Continued Effectiveness of Credit Agreement. The Borrower
hereby (i) confirms and agrees that each Loan Document to which it is a party
is, and shall continue to be, in full force and effect and is hereby ratified
and confirmed in all respects except that on and after the date hereof all
references in any such Loan Document to "the Credit Agreement", "thereto",
"thereof", "thereunder" or words of like import referring to the Credit
Agreement shall mean the Credit Agreement as amended by this Amendment, and (ii)
confirms and agrees that to the extent that any such Loan Document purports to
assign or pledge to the Collateral Agent, or to grant to the Collateral Agent a
security interest in or lien on, any collateral as security for the Obligations
of the Borrower from time to time existing in respect of the Credit Agreement
and the Loan Documents, such pledge, assignment and/or grant of the security
interest or lien is hereby ratified and confirmed in all respects.

                  6. Miscellaneous.

                  (a) This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which shall be deemed to be an original, but all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of
this Amendment by telefacsimile shall be equally as effective as delivery of an
original executed counterpart of this Amendment.

                                      - 2 -

<PAGE>

                  (b) Section and paragraph headings herein are included for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

                  (c) This Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.

                [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

                                      - 3 -
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be executed by their respective officers thereunto duly authorized as of the day
and year first above written.

                                   KCS ENERGY, INC.

                                   By: /s/ Joseph T. Leary
                                   ---------------------------------------------
                                   Name: Joseph T. Leary
                                   Title: Vice President and CFO

                                   WELLS FARGO FOOTHILL, INC.

                                   By: /s/ Teresa M. Bolick
                                   ---------------------------------------------
                                   Name: Teresa M. Bolick
                                   Title: Vice President

                                   HIGHBRIDGE/ZWIRN SPECIAL
                                   OPPORTUNITIES FUND, L.P.

                                   By: Highbridge/Zwirn Capital Management, LLC

                                   By: /s/ Daniel B. Zwirn
                                   ---------------------------------------------
                                   Name: Daniel B. Zwirn
                                   Title: Managing Principal

                                   ABLECO FINANCE LLC

                                   By: /s/ Kevin Genda
                                   ---------------------------------------------
                                   Name: Kevin Genda
                                   Title: SVP/Chief Credit OfficerExhibit 10.2

                           CHANGE IN CONTROL AGREEMENT
                           ---------------------------

         This CHANGE IN CONTROL  AGREEMENT (this  "Agreement") is made as of May
27, 2003, between KCS ENERGY, INC., a Delaware corporation whose principal place
of business is located at 5555 San Felipe, Suite 1200, Houston, Texas 77056 (the
"Company") and JOSEPH T. LEARY (the "Executive").

The Company and the Executive agree as follows:

      1. RECITALS.
         ---------

         1.1 The Executive is employed by the Company.

         1.2 The Company recognizes that a Change in Control of Company may
occur.

         1.3 The Company desires to induce the Executive to remain in the employ
of the Company and to assure the Executive of a fair  severance  payment  should
his  employment  terminate  under  certain  circumstances  following a Change of
Control

      2. SEVERANCE ARRANGEMENT.
         ----------------------

         2.1.  Termination  By  Company  or  Executive.  If within two (2) years
               ----------------------------------------
following a Change in Control  the  Executive's  employment  with the Company is
terminated  (i) by the  Company  for any reason  other than for Cause,  death or
permanent disability or (ii) by the Executive for Good Reason, then:

                  2.1.1. Cash Payment.  The Company shall Pay to Executive:  (i)
                         -------------
         an amount  equal to one (1) times the  greater  of (a) the  Executive's
         annual  base  salary in effect  as of the  Termination  Date or (b) the
         Executive's  annual base  salary in effect  immediately  preceding  the
         Change  in  Control;  plus  (ii) an  amount  equal to one (1) times the
         greater of (a) the amount of any cash  bonus  payable to the  Executive
         for the year in which the Termination  Date falls (provided that if the
         Executive's  bonus  for such  year has not  been  determined  as of the
         Termination  Date,  then the amount of the bonus shall be determined as
         if the  Executive  earned 100% of the targeted  bonus for such year) or
         (b) the  amount of any cash bonus  paid to the  Executive  for the year
         immediately  preceding the year in which the Change in Control  occurs;
         plus  (iii)  the  amount  of any  earned  but  unpaid  salary as of the
         Termination  Date;  plus  (iv) a pro  rata  amount  of the  Executive's
         targeted bonus for the year in which the Termination  Date falls;  plus
         (v) the amount of any  accrued  but unpaid  vacation  pay  through  the
         Termination Date.

                  2.1.2.  Stock Options and Restricted  Stock. Any stock options
                          -----------------------------------
         or  restricted  stock granted to the Executive by the Company as of the
         Termination  Date shall  immediately  vest and any stock options remain
         exercisable  until the  later of (i) one (1) year from the  Termination
         Date or (ii) the date on which such options may be  exercised  pursuant
         to the employee stock option plan under which they were granted.

                  2.1.3.  Insurance  Benefits.  The  Company  shall  continue to
                          --------------------
         maintain  and pay the  premiums  for the  Executive's  medical and life
         insurance with coverage which is substantially  similar to the coverage
         in effect as of the Termination Date until the earlier of (i) the first
         anniversary  of the  Termination  Date or (ii) the  date the  Executive
         becomes  employed by another  employer and is entitled to substantially
         similar  benefits  under such  employer's  benefit  plan.  If continued
         coverage is not permitted under the Company's insurance plans, then the
         Company  will (a)  provide the  Executive  with  substantially  similar
         insurance  through  another  insurance  carrier  or (b)  reimburse  the
         Executive for the full cost of obtaining such insurance.

<PAGE>

                  2.2.  Termination  Due to Death or  Disability  or Cause.  The
                        ---------------------------------------------------
         Executive  shall not be  entitled  to any of the  payments  or benefits
         provided  under  Section  2.1 in the event  that the  Termination  Date
         occurs by reason of the Executive's death or permanent disability or if
         the Executive's employment with the Company is terminated for Cause.

      3. PAYMENT TERMS.
         --------------

         All payments to the  Executive  required to be made pursuant to Section
         2.1.1  shall be paid by the  Company  within  five (5) days  after  the
         Termination Date and all payments to the Executive  required to be made
         under  clause (b) of the last  sentence of Section  2.1.3 shall be paid
         within  five  (5)  days of  Executive's  furnishing  the  Company  with
         evidence of the cost of such insurance,  in each case, by wire transfer
         or Company check at the Executive's option. All payments required to be
         made to the Executive  pursuant to this  Agreement  shall be subject to
         the withholding of such payroll taxes as may be required by law.

      4. Definitions.
         ------------
         As used in the Agreement,  the following terms shall have the indicated
         meanings:

         4.1.  "Change in Control":  The first to occur of any of the  following
events:  (i) Any "person" (as the term is used in section 13(d) and 14(d) of the
Securities  Exchange Act of 1934 (the "Exchange Act")),  other than a trustee or
other  fiduciary  holding  securities  under an  executive  benefit  plan of the
Company or any of its subsidiaries,  becomes the beneficial owner (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the
Company representing more than 25% of the combined voting power of the Company's
then  outstanding  securities;  (ii) Individuals who are members of the Board on
the date of this  Agreement  (the  "Incumbent  Board")  cease for any  reason to
constitute at least a majority of the Board, provided that any person becoming a
director  subsequent to the date of this Agreement in replacement for a director
who has died or become  disabled and whose election was approved by a vote of at
least a majority of the  directors  comprising  the  Incumbent  Board,  or whose
nomination  for  election  by the  Company's  stockholders  was  approved by the
nominating  committee  serving  under an Incumbent  Board shall be  considered a
member of the Incumbent  Board;  (iii) A merger or  consolidation of the Company
with any other  corporation  or other  business  entity,  other than a merger or
consolidation  which would result in the combined  voting power of the Company's
securities outstanding immediately prior thereto continuing to represent (either
by remaining  outstanding or by being  converted  into voting  securities of the
surviving entity) at least 51% of the combined voting power of the securities of
the Company or such surviving entity  outstanding  immediately after such merger
or  consolidation;  or  (iv) A sale  or  disposition  by the  Company  of all or
substantially all of the Company's assets.

         4.2. "Cause": The occurrence of any of the following events:

            (i) The commission by the Executive of an act of willful  misconduct
in any material respect including,  but not limited to, the willful violation of
any material law, rule,  regulation or cease and desist order  applicable to the
Executive or the Company  (other than a law,  rule or  regulation  relating to a
minor  traffic  violation or similar  offense),  or an act which  constitutes  a
breach of a fiduciary duty to or related to the Company.

<PAGE>

            (ii) The commission by the Executive of an act of dishonesty related
to the performance of the Executive's  duties,  habitual  unexcused absence from
work,  willful failure to perform duties in any material respect (other than any
such failure resulting from the Executive's incapacity due to physical or mental
illness  or  disability),  or gross  negligence  in the  performance  of  duties
resulting in damage or injury to the Company, its reputation or goodwill; or

            (iii) Any  felony  conviction  of the  Executive  or any  conviction
involving  dishonesty,  fraud or breach of trust (other than for a minor traffic
violation or similar offense), whether or not in the line of duty.

         4.3.  "Good  Reason":  The  occurrence of any of the  following  events
without the consent of the Executive  which remain in effect ten (10) days after
the Company receives written notice of any such event from the Executive:

            (i) Any material  diminution  of the  Executive's  position with the
Company including the Executive's title and responsibilities;

            (ii) Any reduction in the Executive's annual base salary or targeted
bonus compensation; or

            (iii)  The  Company's  requiring  the  Executive  to be based at any
office  location  further  than fifty (50)  miles  from the  Executive's  office
location as of the date of the Agreement.

         4.4.  "Termination  Date":  (i) The date on which the Company  receives
written notice (or any later date specified in such notice) that the Executive's
employment  with the Company is terminated for Good Reason;  or (ii) the date on
which the Executive receives written notice (or any later date specified in such
notice) that the Executive's  employment is terminated by the Company other than
for Cause.

      5.  EFFECTIVENESS  OF AGREEMENT.  The  Executive  shall be entitled to the
          ----------------------------
benefits afforded to him under this Agreement only if a Change in Control occurs
on or before August 1, 2004. If a Change in Control occurs after that date, this
Agreement shall have no force or effect.

      6.  RELEASE OF  CLAIMS.  No  payments  shall be made to the  Executive  in
          -------------------
paragraphs  2.1.1 (i), 2.1.1 (ii),  2.1.1 (iv), 2.1.2 and 2.1.3 unless and until
the  Executive  shall sign and  deliver to the  Company an  agreement  in a form
reasonably satisfactory to the Company pursuant to which the Executive agrees to
release all claims he may have  against the  Company  other than claims  arising
under this  Agreement and claims with respect to the  reimbursement  of business
expenses  or with  respect  to  benefits  which  are to  continue  in  effect in
accordance with the terms of this Agreement.

      7. MISCELLANEOUS PROVISIONS.
         -------------------------

         7.1. No Mitigation.  The Executive  shall not be required to seek other
              --------------
employment  or  otherwise  mitigate  damages in order to be entitled to the full
amount of any  payments and  benefits to which the  Executive is entitled  under
this Agreement. The amount of such payments and benefits shall not be reduced by
any  compensation  or benefits  received by the Executive from other  employment
other than with  respect to the  insurance  benefits  as provided in the Section
2.1.3.

<PAGE>

         7.2. No Employment Agreement. Nothing contained in this Agreement shall
              ------------------------
be construed as a contract of employment  between the Company and the Executive,
or as a right of the  Executive  to continue  in the employ of Company,  or as a
limitation of the right of Company to discharge  the  Executive  with or without
Cause. The Executive is employed at will and his employment may be terminated by
the Company at any time with or without Cause.

         7.3  Eligibility  for Standard  Severance.  If the  Executive  receives
              -------------------------------------
severance  pursuant to Section 2 of this  Agreement,  the Executive  will not be
eligible to receive a severance payment under KCS' standard severance pay policy
(as then existing as set forth in the KCS Energy, Inc. Employee Handbook).

         7.4 Amendments.  This Agreement shall not be amended or modified in any
             -----------
way unless  such  amendment  or  modification  is in  writing  and signed by the
Company and the Executive.

         7.5 Entire Agreement.  This Agreement contains the entire understanding
         ---------------------
of the Company  and the  Executive  concerning  the  subject  matter  hereof and
supersedes any prior or contemporaneous agreement, written or oral, with respect
to the same subject matter.

         7.6 Binding  Effect.  This  Agreement is binding on the Company and the
         --------------------
Executive  and their  respective  successors  in interest  and,  as  applicable,
personal representatives and beneficiaries.

         7.7 Governing Law. This Agreement is made and delivered in the State of
         ------------------
Texas, and shall be governed by and construed according to Texas law.

                                      KCS ENERGY INC.

                                      By: /s/ James W. Christmas
                                          --------------------------------------
                                             James W. Christmas
                                             Chairman, Chief Executive Officer

                                          /s/ Joseph T. Leary
                                          --------------------------------------
                                              JOSEPH T. LEARY

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