Document:

exv10w18

 

Exhibit 10.18

Summary of Director and Executive Officer Compensation

Compensation of Directors

      Each non-employee director receives an annual retainer of $20,000, payable quarterly, plus
$1,000 for attending board and committee meetings. The Chairman of the Audit Committee receives
$6,000 annually and the Chairmen of the Conflicts and Compensation, Nominating and Governance
Committees receive $2,000 annually. In February 2004, each of the non-employee directors received
a grant of 1,350 phantom units, which will vest in February 2008. On October 18, 2004, upon the
vesting of a portion of their phantom units granted in 2003, Messrs. Carmichael, Karn, Scott,
Morian, Smith and Krueger each received a cash payment of $59,073, representing the market value of
their vested phantom units. On January 25, 2005, Mr. Blakely received a cash payment of $74,364
upon the vesting of a portion of his phantom units.

Compensation of Executive Officers

      We have no executive officers, but we reimburse affiliates of the general partner for
compensation paid to the general partner’s executive officers in connection with managing us.
Because the amounts we reimburse the affiliates of our general partner depend on the percentage of
time the executive officers spend managing our business, we cannot predict the exact amount we will
reimburse those affiliates with respect to 2005 salaries for the executive officers. Based on our
current estimates, the amounts we will reimburse the affiliates of our general partner in 2005 for
Messrs. Robertson, Carter, Dunlap, Hogan and Wall will be approximately $0, $247,000, $170,000,
$166,000 and $123,500, respectively.

      At the discretion of our Compensation, Nominating and Governance Committee (the “CNG
Committee”), the executive officers may also receive cash bonuses under our Annual Incentive Plan.
The Annual Incentive Plan has been previously filed with the Commission as Exhibit 10.4 to the
Annual Report on Form 10-K for the year ended December 31, 2005. These bonuses are typically
determined in December. In addition, the CNG Committee may award to the executive officers phantom
unit grants under our Long-Term Incentive Plan pursuant to the Form of Phantom Unit Grant Agreement
filed with the Commission as Exhibit 10.2 to the Quarterly Report on Form 10-Q for the period ended
September 30, 2004. On February 14, 2005, the CNG Committee awarded Messrs. Robertson, Carter,
Dunlap, Hogan and Wall 10,000 phantom units, 5,000 phantom units, 3,500 phantom units, 2,900
phantom units and 2,500 phantom units, respectively.

      Finally, our general partner, in its discretion, may award to the executive officers up to
7.5% of the cash it receives in connection with its incentive distribution rights. The total
amount paid to the executive officers with respect to incentive distributions in 2004 was $23,617.<PAGE>
                                                                    EXHIBIT 10.1

         AMENDMENT OF DEFERRED COMPENSATION ARRANGEMENTS

         WHEREAS, the American Jobs Creation Act of 2004 (the "Act") added new
Section 409A to the Internal Revenue Code effective January 1, 2005, which
requires certain changes with respect to compensation that is deferred and
credited after December 31, 2004; and

         WHEREAS, the Compensation Committee and the Board of Directors, by
resolutions approved on December 8, 2004, appointed a subcommittee consisting of
James F. McDonald and Walter Scott, Jr. and delegated authority to such
subcommittee to take such actions as it deems necessary or desirable, in light
of the Act and the regulations promulgate thereunder, with respect to the
Company's deferred compensation arrangements;

         RESOLVED, the deferred compensation provisions of the Company's plans
(including without limitation the plans listed below) are amended as of December
31, 2004 to provide that such provisions apply only to amounts deferred and
credited thereunder on or before December 31, 2004, together with interest
credited with respect to such amounts thereafter:

            o  Deferred Compensation Plan

            o  Incentive Compensation Plan

            o  2001 Performance Share Unit Plan

            o  2002 Stock Incentive Plan

            o  Supplemental Benefits Plan and Management Supplemental Benefits
               Plan

            o  Compensation Plan for Non-Employee Directors

            o  Phantom Stock Plan for Non-Employee Directors

         RESOLVED, that the proper officers of the Company be, and each of them
hereby is, authorized to implement a new deferred compensation plan or plans
with respect to amounts deferred and credited after December 31, 2004 in
accordance with Section 409A and the regulations promulgated thereunder (subject
to approval of the final plan document by the Compensation Committee and the
Board of Directors).

         RESOLVED, that for purposes of the foregoing resolutions, the term
"amounts deferred" shall be interpreted consistently with Section 409A and the
regulations and guidance thereunder.

         RESOLVED, that the proper officers of the Company be, and each of them
hereby is, authorized to execute and deliver all instruments and to do and
perform any and all acts or things which the officer so acting may deem
necessary or desirable in order to effect the purpose and intent of the
foregoing resolutions.<PAGE>
                                                                   EXHIBIT 10.29

[BR Letterhead]

[Date]

[Name and Address]

Dear [______]:

The Company offers Stock Options to its key employees as an incentive to focus
on shareholder interests and long-term performance. As a key employee, you can
impact the long-term performance of the Company and have been selected to
participate in the Burlington Resources Inc. 2002 Stock Incentive Plan ("Plan").

On [______], you were awarded a grant of [______] Incentive Stock Options
("ISOs") and [______] Non-Qualified Stock Options ("NQSOs") for Burlington
Resources Common Stock, at an exercise price of [______] per share.

[______] of the stock options will vest and become exercisable after you have
completed each of [______] years respectively, of continuous employment with the
Company or a subsidiary after [______], except in certain circumstances
described in the Plan. All of your ISOs will vest after the first year, subject
to the terms and conditions of the Plan. Once vested, your NQSOs and ISOs may be
exercised, in whole or in part, through [______], and [______], respectively,
unless sooner terminated as a result of Plan provisions.

OTHER INFORMATION

If your employment with the Company terminates, all unvested options expire,
except in certain circumstances described in the Plan, and vested options remain
outstanding only to the extent and for the period provided in the Plan. Please
be aware that the exercise of options has certain tax consequences. Please
consult your personal tax advisor before exercising your options. For more
information on these topics, please refer to the enclosed Summary Plan
Description.

Exercise of your options must be confirmed in writing and delivered to the
Corporate Secretary at the Corporate office in Houston, Texas, specifying the
option to be exercised, exercise price and number of shares. In order to
exercise an option, you must submit full payment in cash, BR Common Stock owned
by you for at least six months and having a fair market value equal to the
option price, or a combination of cash and BR Common Stock, or participate in a
cashless exercise program through a broker approved in advance by the Corporate
Secretary. You must also arrange for the payment to the Company of applicable
withholding taxes resulting from the exercise of the option once the Company has
notified you of the amount due.

The Options are subject to all of the terms and conditions of the Plan. For more
information regarding options, please refer to the Plan, the enclosed Plan
Summary and Summary Plan Description.

If you have any questions, please call [______]at [______].

Sincerely,

[________]<PAGE>
                                                                   EXHIBIT 10.33

                     SUMMARY OF PERFORMANCE MEASURES FOR THE
              BURLINGTON RESOURCES INC. INCENTIVE COMPENSATION PLAN

         The Burlington Resources Inc. Incentive Compensation Plan (the "Bonus
Plan") is the program by which executives and key employees can earn additional
compensation based on individual, division and Company performance relative to
certain annual objectives. In evaluating the Company's 2005 performance for
purposes of the Bonus Plan, the Compensation Committee of the Board of Directors
(the "Committee") will consider a combination of operating and financial
objectives, including return on capital employed, growth in appraised net worth
per share (calculated on a price normalized basis), unit cash costs, change in
production per share and reserve replacement costs. Return on capital employed
will be evaluated in light of the Company's performance relative to its
self-constructed peer group and that amount may be modified based on commodity
prices. These measures will be specifically weighted and are considered to be
critical to the Company's fundamental goal of building shareholder value. In
addition, the Committee has the discretion to modify the result of these
measures based upon the Company's relative total shareholder return as compared
to its self-constructed peer group and the Company's environmental health and
safety performance.<PAGE>
                                                                   Exhibit 10.34

            SUMMARY OF THE COMPENSATION OF NON-EMPLOYEE DIRECTORS OF
                            BURLINGTON RESOURCES INC.

      Set forth below is a summary of the compensation provided to directors who
are not officers or employees of the Company ("Non-Employee Directors").
Directors who are also officers or employees of the Company do not receive any
compensation for duties performed as Directors.

Retainers:

o   Board Retainer: Each Non-Employee Director receives an annual retainer of
    $75,000.

o   Committee Chair Retainer: The Chairman of the Audit Committee receives an
    annual retainer of $10,000 and the Chairman of each other Committee of the
    Board of Directors receives an annual retainer of $5,000.

o   Deferral Election: Directors can elect to have their retainers paid
    quarterly in cash, or defer payment until their resignation from the Board
    of Directors under deferral provisions which permit participants to allocate
    the deferred compensation in a variety of investment funds, including
    phantom shares of the Company's common stock.

Stock Option Grants: The Company's 2000 Stock Option Plan for Non-Employee
Directors provides for the annual grant of a nonqualified option to purchase
4,000 shares of common stock immediately following the Company's Annual Meeting
of Stockholders to Non-Employee Directors. In addition, an option to purchase
10,000 shares is granted upon a Non-Employee Director's initial election or
appointment to the Board of Directors. The exercise price per share with respect
to each option is the fair market value (as defined in the plan) of the
Company's common stock on the date the option is granted.

Phantom Stock Grants: The Company's Phantom Stock Plan for Non-Employee
Directors provides that immediately following each Annual Meeting of
Stockholders (and upon a Non-Employee Director's initial election or appointment
to the Board of Directors if not at an Annual Meeting), a memorandum account
established for each of the Non-Employee Directors will be credited with 2,000
shares of phantom stock. Dividends paid per share of Common Stock are deemed to
be paid per share of phantom stock and are reinvested in additional phantom
stock pursuant to the plan. Amounts credited to the memorandum accounts pursuant
to this plan are unfunded obligations of the Company. Upon termination of
services as a Director, phantom shares credited in the memorandum account will
be valued at the fair market value of the Company's common stock at that time
and paid in cash either in a lump sum or monthly installments.

Travel Insurance: The Company maintains $500,000 of business travel accident
insurance for Non-Employee Directors while traveling on Company business.

Matching Gift Program: Non-Employee Directors participate in the Company's
matching gift program on the same basis as the Company's full-time employees in
the United States.

Continuing Education Programs: In accordance with the Company's Corporate
Governance Guidelines, the Company reimburses Directors for reasonable expenses
incurred in connection
<PAGE>
with continuing education programs relating to the responsibilities of directors
of public companies.

Reimbursement of Expenses: The Company reimburses Non-Employee Directors for
expenses incurred in connection with attending Board of Director meetings and
other Company events including the reimbursement of expenses for transportation
on commercial, chartered or private aircraft. On occasion, a spouse or guest of
a Non-Employee Director is invited by the Company to a Company event and travels
with the Non-Employee Director. From time to time, the Company provides
transportation aboard Company aircraft to and from these events. Under
applicable tax laws, income may be imputed to a Non-Employee Director in certain
instances for use of Company aircraft, and the Company's reimbursement for
expenses may include tax protection applicable to some or all of the imputed
income. In addition, subject to the approval of the Chairman of the Board and
Chief Executive Officer, Non-Employee Directors and their invited guests are
permitted to use Company aircraft for personal use, provided that the number of
flight hours for these trips by all of the Non-Employee Directors and their
spouses or guests, together with approved personal trips by employees and others
on Company aircraft, may not exceed ten percent (10%) of the total flight hours
in any fiscal quarter.

Charitable Award Program: In 1991, the Company established a Charitable Award
Program for Directors who have served on the Board of Directors for at least two
years. Upon the death of a Director eligible to participate in the program, the
Company will donate $1 million to one or more educational institutions of higher
learning or other charitable organizations (which may include private
foundations) nominated by the Director and, in the case of charitable
organizations, approved by the Board of Directors. In January 2003, the Board of
Directors terminated the program with respect to the participation of any person
first elected to serve on the Board of Directors after that date.

Retirement Plans: In 1988 the Company established a Retirement Plan for
Directors. Effective as of the Company's 1996 Annual Meeting of Stockholders,
the Board of Directors terminated such plan, although benefits accrued prior to
termination remain. As a result, upon retirement from the Board of Directors,
James F. McDonald, Donald M. Roberts and Walter Scott, Jr. will receive an
annual payment in an amount equal to the annual retainer then being paid to
Directors for the number of years of service on the Board of Directors prior to
termination of the plan. In addition, Kenneth W. Orce and John F. Schwarz were
former directors of The Louisiana Land and Exploration Company ("LL&E"), which
was merged into and became a wholly owned subsidiary of the Company on
October 22, 1997. As former directors of LL&E, Messrs. Orce and Schwarz will be
entitled to receive benefits under the Retirement Plan for Directors of LL&E,
which provides for an annual retirement benefit for a period of ten years equal
to the annual LL&E retainer fees of $30,000 payable in equal quarterly
installments beginning upon the Director's 70th birthday.

                                      -2-

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