Document:

exv10w7

 

EXHIBIT 10.7

NEWFIELD EXPLORATION COMPANY

AMENDED AND RESTATED 2003 INCENTIVE COMPENSATION PLAN

      This Amended and Restated 2003 Incentive Compensation (this “Plan”) of Newfield Exploration
Company (the “Company”) was adopted by the Board of the Company effective as of January 1, 2005.

Recitals:

      WHEREAS, effective for the Performance Period beginning on January 1, 1993, the Board adopted
the 1993 Plan, which plan had a purpose substantially similar to this Plan;

      WHEREAS, upon adoption of this Plan, the Board terminated the 1993 Plan effective as of
December 31, 2002;

      WHEREAS, notwithstanding such termination of the 1993 Plan, Awards were granted for the
Performance Period that ended on December 31, 2002 pursuant to and in accordance with the 1993
Plan;

      WHEREAS, except as specifically provided in this Plan, such termination of the 1993 Plan will
have no effect on unpaid Deferred Incentive Compensation Awards (as defined in, and granted
pursuant to, the 1993 Plan), which Awards will continue to be governed by the terms of the 1993
Plan;

      WHEREAS, in considering the termination of the 1993 Plan and the adoption of this Plan, the
Board took into account the value of the overriding royalty interests dedicated to the Employee
Incentive Override Pool (as defined in the 1993 Plan) under the 1993 Plan from and after the date
of termination of the 1993 Plan (the “1993 ORRI Value”) and determined that such value was
incorporated into this Plan;

      WHEREAS, effective January 1, 2005, the Board adopted Amendment No. 1 to this Plan to provide
for the termination of this Plan upon a change of control, to conform this Plan and the 1993 Plan
to recent legislation affecting deferred compensation arrangements and to amend this Plan and the
1993 Plan in other respects and amended and restated this Plan; and

      WHEREAS, in considering the amendment to this Plan to provide for its termination upon a
change of control, the Board took into account the remaining 1993 ORRI Value from and after the
adoption of such amendment and determined that such value has been incorporated into other plans
and benefits, including this Plan as amended and the Change of Control Severance Agreements to be
entered into with certain executives in connection with the amendment to this Plan and the Change
of Control Severance Plan for employees in general to be adopted in connection with the amendment
to this Plan;

      NOW, THEREFORE, in consideration of the foregoing and for the purpose described below, the
Board has adopted, effective as of the date first written above, the terms and provisions governing
this Plan as follows:

 

 

I.

Purpose

      This Plan is intended to provide a means whereby employees of the Company and its Subsidiaries
may develop a sense of proprietorship and personal involvement in the development and financial
success of the Company and its consolidated subsidiaries, to attract and retain employees of
outstanding competence and ability and to encourage them to remain with and devote their best
efforts to the business of the Company and its Subsidiaries, and to reward such employees for
outstanding performance, thereby advancing the interests of the Company and its stockholders.

II.

Definitions

      Where the following words and phrases appear in this Plan, they shall have the respective
meanings set forth below unless their context clearly indicates to the contrary:

      (a) “1993 Plan” means the Newfield Employee 1993 Incentive Compensation Plan, as amended.

      (b) “Adjusted Net Income” means, with respect to a particular Performance Period, the
consolidated net income of the Company and its Subsidiaries determined in accordance with generally
accepted accounting principles, except (i) without reduction for (A) income taxes and (B) Awards
granted or to be granted pursuant to this Plan (ii) without the effects of unrealized gains or
losses associated with SFAS No. 133 and (iii) as adjusted for extraordinary or other unusual items
and other items not contemplated at the time this Plan was adopted by the Board (such as changes in
generally accepted accounting principles, ceiling test writedowns and other non-recurring items) as
determined by the Committee in its sole discretion.

      (c) “Awards” means Current Awards and Deferred Awards.

      (d) “Board” means the Board of Directors of the Company.

      (e) “Cause” means (i) with respect to Awards granted prior to January 1, 2005, termination of
employment because of (A) conviction of a felony or of a misdemeanor involving moral turpitude
(which, through lapse of time or otherwise, is not subject to appeal); (B) willful refusal without
proper legal cause to perform the duties and responsibilities of the employee to the Company or any
Subsidiary; (C) willful conduct which the employee has reason to know is materially injurious to
the Company or Subsidiary; or (D) gross negligence or willful misconduct in the performance of the
employee’s duties and responsibilities with respect to the Company or any Subsidiary and (ii) with
respect to Awards granted on or after January 1, 2005, any termination of employment because of (A)
conviction of or entering of a plea of nolo contendre to a felony or a misdemeanor involving moral
turpitude; (B) willful refusal without proper legal cause to perform the duties and
responsibilities of the employee to the Company or any Subsidiary; (C) willful conduct which the
employee has reason to know is materially injurious to the Company or any Subsidiary; (D) gross
negligence or willful misconduct in the performance of the employee’s duties and responsibilities
with respect to the Company or any Subsidiary; or (E) material breach of any material policy of the
Company or any Subsidiary.

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      (f) “Change of Control” means the occurrence of any of the following events: (i) the Company
shall not be the surviving entity in any merger, consolidation or other reorganization (or survives
only as a subsidiary of an entity other than a previously wholly owned subsidiary of the Company);
(ii) the Company sells, leases or exchanges all or substantially all of its assets to any other
person or entity (other than a wholly owned subsidiary of the Company); (iii) the Company is to be
dissolved and liquidated; (iv) any person or entity, including a “group” as contemplated by Section
13(d)(3) of the Exchange Act, acquires or gains ownership or control (including, without
limitation, power to vote) of more than 50% of the outstanding shares of the Company’s voting stock
(based upon voting power); or (v) as a result of or in connection with a contested election of
directors, the persons who were directors of the Company before such election shall cease to
constitute a majority of the Board.

      (g) “Code” means the Internal Revenue Code of 1986, as amended.

      (h) “Committee” means the Compensation Committee of the Board.

      (i) “Company” means Newfield Exploration Company and its successors.

      (j) “Current Award” means an Award granted to an Eligible Employee pursuant to Article V that
is payable on or before the March 1 following the Performance Period.

      (k) “Deferred Award” means an Award granted to an Eligible Employee pursuant to Article V the
payment of which is deferred and subject to forfeiture as provided in Article VII.

      (l) “Deferred Award Account” means the account maintained on the books of the Company for each
employee who has been granted a Deferred Award under this Plan.

      (m) “Designated Rate” means simple interest at an initial rate per annum equal to 6%. Each
February, beginning February 2004, the Committee may, in its sole discretion, set a different rate
that shall be effective beginning on the March 1 immediately following such determination and shall
remain in effect until such time as the Committee sets a different rate pursuant this sentence.

      (n) “Effective Date” means January 1, 2003.

      (o) “Eligible Employee” means, with respect to a particular Performance Period, each employee
of the Company or a Subsidiary who was (i) employed by the Company or a Subsidiary on both October
1 and December 31 of such Performance Period and (ii) recommended by the Chief Executive Officer of
the Company to receive an Award.

      (p) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

      (q) “Final Financial Information” means, with respect to a particular Performance Period, the
financial information filed by the Company with the Securities and Exchange Commission pursuant to
the Exchange Act with respect to such Performance Period.

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      (r) “Grandfathered Employee” means an employee who (i) commenced employment with the Company
prior to January 1, 1993 and (ii) has been continually employed by the Company or a Subsidiary
since such date.

      (s) “Incentive Pool” means the aggregate amount to be awarded with respect to a particular
Performance Period as determined pursuant to Article IV.

      (t) “Participation Agreement” means an agreement by and between the Company and a third party
that defines terms on which the party participates in one or more of the Company’s exploration and
acquisition activities if such agreement provides for Overriding Royalty Interests, as defined
therein, or with the approval of the Committee, some other promote or financial consideration, to
fund the Incentive Pool.

      (u) “Performance Period” means any calendar year beginning on or after January 1, 2003.

      (v) “Plan” means the 2003 Incentive Compensation Plan, as amended from time to time.

      (w) “Redetermined Incentive Pool” means, with respect to a particular Performance Period, (i)
if the Committee used financial information other than Final Financial Information to determine the
Incentive Pool for such Performance Period, the amount the Incentive Pool would have been if the
Committee had used Final Financial Information to determine the Incentive Pool for such Performance
Period and (ii) if the Committee used Final Financial Information to determine the Incentive Pool
for such Performance Period, the amount the Incentive Pool as so determined.

      (x) “Retiring Employee” means any employee whose employment with the Company is being
terminated by reason of retirement if such employee is at such time qualified for benefits under
the Company’s early retirement program.

      (y) “SFAS No. 133” means SFAS No. 133, “Accounting for Derivative Instruments and Hedging
Activities,” as amended (i) by SFAS No. 137, “Accounting for Derivative Instruments and Hedging
Activities – Deferral of the Effective Date of FASB Statement No. 133, an amendment of FASB
Statement No. 133,” (ii) by SFAS No. 138, “Accounting for Certain Derivative Instruments and
Certain Hedging Activities, an amendment of FASB Statement No. 133,” and (iii) from time to time
after the Effective Date.

      (z) “Subsidiary” means any entity that is consolidated with the Company for financial
accounting purposes in accordance with generally accepted accounting principles.

III.

Administration of Plan

      This Plan shall be administered by the Committee. The Committee is authorized to interpret
this Plan and may from time to time adopt such rules and regulations, consistent with the
provisions of this Plan, as it may deem advisable to carry out this Plan. All determinations

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made by the Committee under this Plan, and all interpretations of this Plan by the Committee,
shall be final and binding on all interested parties.

IV.

Determination of Incentive Pool

      (a) The amount of the Incentive Pool for a particular Performance Period shall be equal to:

     (i) 5% of Adjusted Net Income for the Performance Period; plus

     (ii) an amount equal to the revenues or other amounts that have been designated for the
Incentive Pool pursuant to each Participation Agreement; plus

     (iii) the amount of any Deferred Awards forfeited during the Performance Period pursuant to
paragraph (b) of Article VII; plus

     (iv) the amount of any Deferred Incentive Compensation Awards (as defined in the 1993 Plan)
forfeited pursuant to Article VIII of the 1993 Plan after December 31, 2002; plus

     (v) the amount, if any, by which the Redetermined Incentive Pool for the immediately preceding
Performance Period exceeded the aggregate amount of Awards granted with respect to such immediately
preceding Performance Period; minus

     (vi) in the discretion of the Committee, the amount (or any portion thereof) by which the
aggregate amount of Awards granted with respect to any previous Performance Period exceeded the
amount of the Redetermined Incentive Pool for such Performance Period, but only if any such amount
has not previously reduced an Incentive Pool pursuant to this clause (vi).

      (b) As soon as administratively feasible after the end of a Performance Period, the Committee
shall determine the amount of the Incentive Pool with respect to such Performance Period. If the
financial information for such Performance Period is not final at the time that the Committee meets
to determine the amount of the Incentive Pool, the Committee may use the then best available
estimates of such financial information to determine the amount of the Incentive Pool. Such
determination shall be in writing and shall be filed with the appropriate records of the Company.

V.

Grant of Awards

      (a) Subject to Article VIII(a), the aggregate amount of Awards granted to Eligible Employees
with respect to a particular Performance Period shall be equal to the lesser of (i) the amount of
the Incentive Pool for such Performance Period and (ii) an amount recommended by the Chief
Executive Officer of the Company that is no less than 85% of the amount of the Incentive Pool for
such Performance Period.

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      (b) At any time and from time to time after the determination of the Incentive Pool with
respect to a Performance Period and prior to the February 28 following the end of the such
Performance Period, the Committee shall grant Awards to those Eligible Employees that the
Committee, in its discretion, determines should receive Awards. Subject to paragraph (a) above,
the amount of such Awards shall be determined by the Committee in its discretion. The Committee
shall consider the recommendations of the Chief Executive Officer of the Company in making such
determinations.

      (c) Each Award shall be designated as a Current Award or a Deferred Award. An Eligible
Employee may be granted both a Current Award and a Deferred Award with respect to a single
Performance Period.

VI.

Deferred Award Accounts

      (a) The Company shall maintain a separate Deferred Award Account for each employee who has
been granted a Deferred Award under this Plan. If an employee receives more than one Deferred
Award, a separate Deferred Award Account shall be maintained for each Award. An employee’s
Deferred Award Account shall be debited and credited as provided in this Article VI and in Article
VII.

      (b) Promptly after the determination by the Committee of the amount of any Deferred Award to
an Eligible Employee, there shall be credited to the Deferred Award Account of such employee the
amount of such award.

      (c) The balance in each Deferred Award Account shall accrue interest, beginning on the March 1
following the Performance Period for which the related Deferred Award was granted and continuing
for so long as any balance remains in such Deferred Award Account, at the Designated Rate from time
to time in effect. Interest shall be computed on a daily basis using a 365 or 366 day year, as the
case may be, applied to the balance in such Deferred Award Account. Interest shall be credited to
Deferred Award Accounts as of November 30 of each year unless otherwise provided by this Plan.

VII.

Payment of Deferred Awards

      (a) Subject to paragraph (b) below, each Deferred Award shall be paid in four annual
installments, with each installment consisting of 25% of such Deferred Award plus interest credited
to the applicable Deferred Award Account with respect to such amount. The first installment shall
be paid on the next December 1 following the end of the Performance Period with respect to which
the Award was granted (the “First Installment Date”). The second, third and fourth installments
shall be paid on the first, second and third anniversaries, respectively, of the First Installment
Date. The applicable Deferred Award Account shall be debited for all amounts paid pursuant to this
paragraph (a).

      (b) If an employee terminates employment with the Company or any Subsidiary prior to receiving
payment of all Deferred Awards granted to such employee (together with any

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interest credited with respect thereto), the following provisions shall govern the payment or
forfeiture of such amounts:

     (i) Each Grandfathered Employee who voluntary terminates employment or who is involuntarily
terminated other than for Cause shall be vested in the full amount (including interest to the date
of payment) remaining, if any, in all Deferred Award Accounts for such employee at the time of such
employee’s termination of employment.

     (ii) Each Retiring Employee shall be vested in the full amount (including interest to the date
of payment) remaining, if any, in all Deferred Award Accounts at the time of such employee’s
retirement.

     (iii) Unless otherwise expressly provided by the Committee, each employee who (A) is not a
Grandfathered Employee or a Retiring Employee who terminates employment with the Company or any
Subsidiary for any reason other than death or permanent disability or (B) is a Grandfathered
Employee who is involuntarily terminated for Cause shall forfeit any and all Deferred Awards
remaining to be paid to such employee under this Plan and any credited but unpaid interest in any
Deferred Award Account for such employee and such employee shall not be entitled to receive any
further payments under this Plan.

     (iv) If an employee’s employment with the Company or any Subsidiary terminates by reason of
such employee’s death or permanent disability, the Company shall pay to the estate of such employee
or to such employee, as the case may be, the full amount (including interest to the date of payment
of such amount) remaining, if any, in all Deferred Award Accounts for such employee at the time of
such employee’s death or permanent disability. Such payment shall be made within 90 days after the
Company is notified of such employee’s death or permanent disability.

     (v) If a former employee dies while still eligible to receive payment for Deferred Awards, the
Company shall pay to the estate of such former employee the full amount (including interest to the
date of payment of such amount) remaining, if any, in all Deferred Award Accounts for such employee
at the time of such employee’s death. Such payment shall be made within 90 days after the Company
is notified of such employee’s death.

     (vi) A leave of absence authorized by the Company or any Subsidiary shall not be considered a
termination of employment for purposes of this Article VII or the definition of Grandfathered
Employee.

     (vii) All affected Deferred Award accounts shall be debited for all amounts paid or forfeited
pursuant to this paragraph (b).

     (viii) Any amount remaining in any Deferred Award Account for a former employee not forfeited
pursuant to clause (iii) above shall be paid no later than the time that such amount would have
been paid pursuant to paragraph (a) above but may, at the option of the Company, be paid (together
with interest to the date of payment) earlier.

      (c) All amounts (including interest to the date of payment of such amounts) remaining, if any,
in each Deferred Award Account at the time of a Change of Control shall

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(i) automatically vest, (ii) not be subject to forfeiture pursuant to paragraph (b) above and
(iii) be paid to the employee to which each such Deferred Award Account relates at the time of such
Change of Control.

      (d) An employee may provide the Company with a written designation of a beneficiary or
beneficiaries to receive any payments of Awards that would otherwise be paid to such employee’s
estate hereunder. Any such designation may be changed or revoked by written notice to the Company.

VIII.

Duration, Amendment and Termination

      (a) The Board shall have the right to amend this Plan from time to time, to terminate it
entirely or to direct the discontinuance of Awards either temporarily or permanently. The Board
may make any amendment to any outstanding Award that it believes is necessary or helpful to comply
with any applicable law including, without limitation, Section 409A of the Code. However, no
amendment, discontinuance or termination of this Plan shall operate to annul an outstanding Award
unless otherwise provided by the terms of this Plan. The term of this Plan shall be from its
Effective Date until terminated by the Board.

      (b) In furtherance, and not in limitation, of paragraph (a) above, at any time determined by
the Board, this Plan may be restructured by the Board to, among any other alterations or changes
determined by the Board in its sole discretion, (i) alter the eligibility requirements for awards
under such plan, (ii) provide for a Performance Period that is shorter or longer, (iii) change the
provisions regarding the forfeiture of Deferred Awards, (iv) change the definition of Adjusted Net
Income, (v) change the percentage of Adjusted Net Income included in the Incentive Pool or (vi)
provide that less than all of the Incentive Pool must be paid in Awards to Eligible Employees.

      (c) Notwithstanding any provision of this Plan to the contrary, on the date of a Change of
Control (as defined in paragraph (f) of Article II and without regard to Article X), (i) all Plan
bonus obligations accrued to such date on the books of the Company that are not the subject of
previous Awards shall be paid in cash to such employees of the Company and its Subsidiaries, and in
such amounts with respect to each such employee, as the Committee shall determine in its sole
discretion based upon recommendations from the Chief Executive Officer of the Company and (ii) upon
payment of all such Plan obligations, this Plan shall terminate.

IX.

Miscellaneous

      (a) Neither this Plan nor any grant of Awards under this Plan shall confer on any employee the
right to continued employment by the Company or any Subsidiary, or affect in any way the right of
the Company or such Subsidiary to terminate the employment of such employee at any time. Any
question as to whether and when there has been a termination of an employee’s employment and the
cause of such termination shall be determined by the Committee, and its determination shall be
final.

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      (b) Except to the extent set forth herein as to the rights of the estates or beneficiaries of
employees to receive payments, Awards under this Plan are non-assignable and non-transferable and
are not subject to anticipation, adjustment, alienation, encumbrance, garnishment, attachment or
levy of any kind.

      (c) None of the establishment of this Plan, the granting of Awards or the establishment of
Deferred Award Accounts shall be deemed to create a trust. This Plan and all unpaid awards shall
constitute an unfunded, unsecured liability of the Company to make payments in accordance with the
provisions of this Plan, and no person or entity shall have any security or other interest in any
assets of the Company, in any Deferred Award Account or otherwise.

      (d) The existence of this Plan and the Awards granted hereunder shall not affect in any way
the right or power of the Board or the stockholders of the Company to authorize or consummate any
merger or consolidation of the Company, the dissolution or liquidation of the Company or any sale,
lease, exchange or other disposition of all or any part of its assets or business or any other
corporate act or proceeding.

      (e) Neither the officers nor the directors of the Company nor the members of the Committee
shall under any circumstances have any liability with respect to this Plan or its administration
except for gross and intentional malfeasance. The officers and directors of the Company and the
members of the Committee may rely upon opinions of counsel as to all matters, including the
creation, operation and interpretation of this Plan.

      (f) No portion of this Plan shall be effective at any time when such portion violates an
applicable state or federal law, regulation or governmental order or directive which is subject to
sanctions, whether direct or indirect.

X.

Compliance with Code Section 409A

Notwithstanding any provision of this Plan to the contrary, with respect to Awards granted
under this Plan after December 31, 2004, and with respect to Deferred Awards granted under
this Plan prior to January 1, 2005 and Deferred Incentive Compensation Awards granted under
the 1993 Plan, that are subject to Section 409A of the Code, the following provisions shall
apply:

      (a) For purposes of this Plan, the defined term “Change of Control” means a change in
the ownership or effective control of the Company, or in the ownership of a substantial
portion of the assets of the Company, as provided under Section 409A(a)(2)(A)(v) of the
Code and any regulations or other administrative guidance issued thereunder.

      (b) Payment of Deferred Award Accounts may not be accelerated at the option of the
Company as provided in clause (viii) of paragraph (b) of Article VII of this Plan.

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      (c) References in this Plan and in the 1993 Plan to the “permanent disability” of an
employee mean that such employee has become “disabled” within the meaning of Section
409A(a)(2)(C) of the Code.

      (d) The Board may make any amendment to the 1993 Plan or with respect to any Award (as
defined in the 1993 Plan) granted under the 1993 Plan that it believes is necessary or
helpful to comply with any applicable law including, without limitation, Section 409A of
the Code.

10exv10w9

 

EXHIBIT 10.9

NEWFIELD EXPLORATION COMPANY

CHANGE OF CONTROL SEVERANCE PLAN

I. INTRODUCTION

      This Change of Control Severance Plan is adopted pursuant to the authorization of the Board of
Directors of Newfield Exploration Company, a Delaware corporation, for the benefit of its eligible
employees and the eligible employees of its participating subsidiaries and affiliated entities.
This Change of Control Severance Plan is intended to provide severance benefits to certain officers
and employees whose employment is terminated under certain circumstances on or after the date upon
which occurs a Change of Control of the Company.

II. DEFINITIONS AND CONSTRUCTION

      2.1 Definitions. Where the following words and phrases appear in the Plan, they shall
have the respective meanings set forth below, unless their context clearly indicates to the
contrary.

     (a) “Board” shall mean the Board of Directors of the Company.

     (b) “Cause” shall mean, with respect to each Covered Employee, any termination of such
Covered Employee’s employment with the Employer based on a determination by the Committee
that such Covered Employee (1) has been convicted of or entered a plea of nolo contendre to
a felony or of a misdemeanor involving moral turpitude, (2) has willfully refused without
proper legal cause to perform the duties and responsibilities of the employee, (3) has
willfully engaged in conduct which the employee has reason to know is materially injurious
to the Employer or its affiliates, (4) has engaged in gross negligence or willful misconduct
in the performance of the employee’s duties and responsibilities with the Employer, or (5)
has materially breached any material policy of the Employer.

     (c) “Change of Control” shall mean the occurrence of any of the following:

     (1) the Company is not the surviving Person (as such term is defined
below in this definition) in any merger, consolidation or other
reorganization (or survives only as a subsidiary of another Person);

     (2) the consummation of a merger or consolidation of the Company with
another Person pursuant to which less than 50% of the outstanding voting
securities of the surviving or resulting corporation are issued in respect
of the capital stock of the Company;

     (3) the Company sells, leases or exchanges all or substantially all of
its assets to any other Person;

 

 

     (4) the Company is to be dissolved and liquidated;

     (5) any Person, including a “group” as contemplated by Section13(d)(3)
of the Securities Exchange Act of 1934, acquires or gains ownership or
control (including the power to vote) of more than 50% of the outstanding
            shares of the Company’s voting stock (based upon voting power); or

     (6) as a result of or in connection with a contested election of
directors, the Persons who were directors of the Company before such
election cease to constitute a majority of the Board.

Notwithstanding the foregoing, the definition of “Change of Control” shall
not include any merger, consolidation, reorganization, sale, lease,
exchange, or similar transaction involving solely the Company and one or
more Persons that were wholly owned, directly or indirectly, by the Company
immediately prior to such event. For purposes of this definition, “Person”
shall mean any individual, partnership, corporation, limited liability
company, trust, incorporated or unincorporated organization or association
or other legal entity of any kind.

     (d) “Code” shall mean the Internal Revenue Code of 1986, as amended.

     (e) “Committee” shall mean the Committee appointed pursuant to Section 4.1.

     (f) “Company” shall mean Newfield Exploration Company, a Delaware corporation.

     (g) “Covered Employee” shall mean any individual who, immediately prior to a Change of
Control is an employee of the Employer who is normally scheduled to work 30 or more hours
per week, other than (1) an employee whose terms and conditions of employment are governed
by a collective bargaining agreement, unless such agreement provides for his coverage under
the Plan, (2) a nonresident alien who receives no earned income from the Employer that
constitutes income from sources within the United States, unless the Compensation &
Management Development Committee of the Board has determined that such individual shall be
covered by the Plan, and (3) a “leased employee.” Notwithstanding any provision of the Plan
to the contrary, no individual who is designated, compensated, or otherwise classified or
treated by the Employer as an independent contractor or other non-common law employee shall
be eligible to receive benefits under the Plan. It is expressly intended that individuals
not treated as common law employees by the Employer are to be excluded from Plan
participation even if a court or administrative agency determines that such individuals are
common law employees.

     (h) “Employer” shall mean the Company and each of its subsidiaries and affiliates that
is treated as an Employer in accordance with the provisions of Section 5.1.

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     (i) “Good Reason” shall mean, with respect to each Covered Employee, on or following a
Change of Control but not later than the second anniversary of the Change of Control, the
occurrence of any one or more of the following:

     (1) a material reduction in the nature or scope of such Covered Employee’s
aggregate responsibilities from those applicable to such Covered Employee
immediately prior to the date on which a Change of Control occurs;

     (2) a reduction in such Covered Employee’s annual base salary;

     (3) any failure to provide such Covered Employee with a combined total of
annual base salary and annual bonus compensation at a level at least equal to the
combined total of such Covered Employee’s annual rate of base salary with the
Employer in effect immediately prior to the Change of Control and bonus compensation
in an amount equal to the amount determined under clause (B) of Section 2.1(n) for
such Covered Employee (provided that in the event that such Covered Employee has not
yet been eligible to receive any annual cash bonus awards due to such Covered
Employee’s length or period of service with the Employer, then such amount of bonus
compensation shall equal the mean of the total amount determined under such clause
(B) for all Covered Employees who were similarly situated to such Covered Employee
immediately prior to the Change of Control), with a failure being deemed to have
occurred in the event that (A) payments are made to such Covered Employee in a form
other than cash, (B) base salary is deferred at other than such Covered Employee’s
election, (C) bonus compensation is not awarded within two and one-half months
following the end of the calendar year to which it relates, (D) bonus compensation
is deferred at other than such Covered Employee’s election at a rate in excess of
the average ratio of deferred bonuses to currently paid bonuses awarded to such
Covered Employee with respect to the two most recent calendar years ending prior to
the Change of Control, or (E) bonus compensation is deferred at other than such
Covered Employee’s election in a manner that is not substantially similar in terms
of such Covered Employee’s vested rights and timing of payments to the manner in
which deferred bonuses were awarded to such Covered Employee with respect to the two
most recent calendar years ending prior to the Change of Control (if such Covered
Employee has not yet been eligible to receive any annual cash bonus awards due to
such Covered Employee’s length or period of service with the Employer, then for
purposes of clause (D) above, the applicable deferral rate for bonus compensation
shall be deemed to equal the mean of the rates determined under such clause (D) for
all Covered Employees who were similarly situated to such Covered Employee
immediately prior to the Change of Control, and for purposes of clause (E) above,
the applicable vested rights and timing of payments for deferred bonus compensation
shall be deemed to be similar to those applied to deferred bonus compensation of
Covered Employees who were similarly situated to such Covered Employee immediately
prior to the Change of Control); or

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     (4) a change in the location of such Covered Employee’s principal place of
employment by the Employer by 50 miles or more from the location where he was
principally employed immediately prior to the date on which a Change of Control
occurs.

     (j) “Involuntary Termination” shall mean, with respect to each Covered Employee, any
termination of such Covered Employee’s employment with the Employer that occurs on or
following a Change of Control but not later than the latest to occur of (1) the second
anniversary of the Change of Control and (2) the expiration of the 30-day period described
in clause (B) of this Section 2.1(j), and which:

     (A) does not result from a voluntary resignation by such Covered Employee
(other than a resignation pursuant to clause (B) of this Section 2.1(j)); or

     (B) results from a resignation by such Covered Employee on or before the date
which is 30 days after the date the Covered Employee receives notice of a Good
Reason event;

provided, however, that the term “Involuntary Termination” shall not include a termination
of such Covered Employee’s employment with the Employer for Cause, any termination as a
result of such Covered Employee’s death or disability under circumstances entitling him to
long-term benefits under the long-term disability plan of the Employer, or any termination
as a result of such Covered Employee declining to accept an offer of comparable employment
from a successor employer. For purposes of the preceding sentence, comparable employment
shall include employment that would not result in a Good Reason event for the Covered
Employee. For the calendar year during which the second anniversary of the Change of
Control occurs, in the event that the Company fails to award a Covered Employee prorated
bonus compensation with respect to the portion of such calendar year ending on such second
anniversary in a manner that does not constitute a failure under Section 2.1(i)(3), such
failure shall be deemed to be an event that constitutes Good Reason and, if such Covered
Employee terminates his employment upon or within 30 days following such failure, then such
termination shall be deemed to be an Involuntary Termination entitling such Covered Employee
to benefits hereunder.

     (k) “Plan” shall mean this Newfield Exploration Company Change of Control Severance
Plan, as amended from time to time.

     (l) “Release” shall mean a comprehensive release and waiver agreement in substantially
the same form as that attached hereto as Exhibit B.

     (m) “Severance Factor” shall mean, (1) with respect to each Covered Employee who has
been designated by the Employer as a Group A member, the product of his Years of Service
multiplied by four, and (2) with respect to each other Covered Employee, the product of his
Years of Service multiplied by three; provided, however,

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that in no event shall a Covered Employee’s Severance Factor be less than two or
greater than 104.

     (n) “Weekly Compensation” shall mean, with respect to each Covered Employee, the
quotient of:

(1) the sum of:

     (A) such Covered Employee’s annual base salary with the Employer at the
rate in effect immediately prior to the Change of Control; and

     (B) an amount equal to one-half of the total of all cash bonuses
(whether paid or deferred) awarded to such Covered Employee by the Employer
with respect to the two most recent calendar years ending prior to the
Change of Control; provided, however, that (i) in the event that any such
cash bonuses were awarded with respect to only a partial year of employment
by such Covered Employee, then for purposes of this clause (B) such cash
bonuses shall be deemed to equal an amount determined by annualizing such
cash bonuses based on the ratio of the number of days such Covered Employee
was employed by the Employer during such year to 365 days, and (ii) in the
event that such Covered Employee was only eligible to receive cash bonus
awards with respect to the most recent calendar year ending prior to the
Change of Control due to such Covered Employee’s length or period of service
with the Employer, then the amount determined under this clause (B) for such
Covered Employee shall, subject to adjustment as provided in (i) above,
equal the total of all cash bonuses awarded to such Covered Employee with
respect to such year;

divided by

(2) 52.

     (o) “Years of Service” shall mean, with respect to each Covered Employee, his years of
continuous employment with the Employer and its affiliates (excluding any predecessors
thereof) from his most recent date of hire as reflected on the Employer’s records plus any
years of service credited to such Covered Employee for purposes of the Plan by the
Compensation & Management Development Committee of the Board for prior industry experience,
including fractions thereof (with fractions to be based upon completed months of
employment); provided, however, no more than five years of prior industry experience may be
credited to a Covered Employee unless such Covered Employee is designated a Group A member,
in which event up to 10 years of prior industry service may be credited to such Covered
Employee.

      2.2 Number and Gender. Wherever appropriate herein, a word used in the singular shall
be considered to include the plural and the plural to include the singular. The masculine gender,
where appearing in the Plan, shall be deemed to include the feminine gender.

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      2.3 Headings. The headings of Articles and Sections herein are included solely for
convenience and if there is any conflict between such headings and the text of the Plan, the text
shall control.

III. SEVERANCE BENEFITS

      3.1 Severance Benefits. If the employment by the Employer or a successor thereto of a
Covered Employee shall be subject to an Involuntary Termination, then (a) such Covered Employee
shall be entitled to receive as a severance benefit, subject to the provisions of Sections 3.3, 3.4
and 3.6 and provided that such Covered Employee executes and does not revoke the Release, a lump
sum cash payment in an amount equal to such Covered Employee’s Severance Factor multiplied by his
Weekly Compensation and (b) notwithstanding anything in any Company employee stock incentive plan
or any grant agreement thereunder to the contrary, as of the date of such Covered Employee’s
termination of employment (i) all restricted shares of Company stock of such Covered Employee
(whether granted before or after the adoption of this Plan) shall become 100% vested and all
restrictions thereon shall lapse and the Company shall promptly deliver to such Covered Employee
unrestricted shares of Company stock and (ii) each then outstanding Company stock option of such
Covered Employee (whether granted before or after the adoption of this Plan) shall become 100%
exercisable. Such lump sum cash payment shall be paid by the Employer to such Covered Employee on
or before the fifth day after such Covered Employee’s execution of the Release becomes effective;
provided, however, that if the lump sum cash payment would be subject to additional taxes and
interest under Section 409A of the Code, then payment of the lump sum cash payment shall be
deferred to the extent required to avoid such additional taxes and interest.

      3.2 Interest on Late Payments. If any cash payment provided for in Section 3.1 is not
made when due, the Employer shall pay to the Covered Employee interest on the amount payable from
the date that such payment should have been made under such Section until such payment is made,
which interest shall be calculated at the maximum nonusurious rate permitted by law.

      3.3 Parachute Payments. Anything to the contrary herein notwithstanding, if a Covered
Employee is a “disqualified individual” (as defined in Section 280G(c) of the Code), and the
severance benefits provided for in Section 3.1, together with any other payments or benefits which
the Covered Employee has the right to receive from the Employer, would constitute a “parachute
payment” (as defined in Section 280G(b)(2) of the Code), then the severance benefits provided
hereunder shall be either (a) reduced (but not below zero) so that the present value of such total
amounts received by the Covered Employee from the Employer will be one dollar ($1.00) less than
three times the Covered Employee’s “base amount” (as defined in Section 280G(b)(3) of the Code) and
so that no portion of such amounts received by the Covered Employee shall be subject to the excise
tax imposed by Section 4999 of the Code or (b) paid in full, whichever produces the better net
after-tax position to the Covered Employee (taking into account any applicable excise tax under
Section 4999 of the Code and any applicable income tax). The determination as to whether any such
reduction in the amount of the severance benefits is necessary shall be made by the Committee in
good faith. If a reduced cash payment is made and through error or otherwise that payment, when
aggregated with other payments or benefits from the Employer (or its affiliates) used in
determining if a “parachute payment” exists, exceeds

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one dollar ($1.00) less than three times the Covered Employee’s base amount, the Covered
Employee shall immediately repay such excess to the Employer upon notification that an overpayment
has been made. Nothing in this Section 3.3 shall require the Employer to be responsible for, or
have any liability or obligation with respect to, any Covered Employee’s excise tax liabilities
under Section 4999 of the Code.

      3.4 Coordination with Certain Other Agreements. The benefits under the Plan are not
intended to duplicate the benefits to which a Covered Employee is entitled under any individual
employment, severance or change of control agreement between such Covered Employee and the
Employer, and if a Covered Employee is entitled to any cash severance benefits under any such
agreement, then any benefits to which such Covered Employee is entitled under the Plan shall be
offset by such cash benefits received under such individual agreement.

      3.5 No Mitigation. A Covered Employee shall not be required to mitigate the amount of
any payment or benefit provided for in this Article III by seeking other employment or otherwise,
nor shall the amount of any payment or benefit provided for in this Article III be reduced by any
compensation or benefit earned by the Covered Employee as the result of employment by another
employer.

      3.6 Severance Pay Plan Limitation. This Plan is intended to be an employee welfare
benefit plan within the meaning of section 3(1) of ERISA and the Labor Department regulations
promulgated thereunder. Therefore, anything to the contrary herein notwithstanding, in no event
shall any Covered Employee receive total severance payments under the Plan that exceed the
equivalent of twice such Covered Employee’s “annual compensation” (as such term is defined in 29
CFR § 2510.3-2(b)(2)) during the year immediately preceding his Involuntary Termination. If total
severance payments under the Plan to a Covered Employee would otherwise exceed the limitation in
the preceding sentence, the amount payable to such Covered Employee under the Plan (other than any
interest paid pursuant to Section 3.2) shall be reduced in order to satisfy such limitation.

IV. ADMINISTATION OF PLAN

      4.1 Appointment of Committee. The Company shall be the Plan administrator during the
period preceding the date upon which a Change of Control occurs. Prior to the date upon which a
Change of Control occurs, the Board shall appoint three or more Covered Employees to serve as the
Committee. If for any reason any individual or entity so appointed resigns or is otherwise
unwilling or unable to serve as a member of the Committee, then such individual or entity (or any
successor thereto) shall appoint his own successor (who shall also be a Covered Employee). The
Committee may select officers and may appoint a secretary who need not be a member of the
Committee. The Committee shall designate the person or persons who shall be authorized to sign for
the Committee and, upon such designation, the signature of such person or persons shall bind the
Committee.

      4.2 Proceedings and Meetings; Self-Interest of Members. The Committee shall keep
appropriate records of proceedings related to the administration of the Plan and shall make
available for examination during business hours to any Covered Employee or beneficiary such

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records as pertain to that individual’s interest in the Plan. The Committee shall hold
meetings upon such notice and at such times and places as it may from time to time determine.
Notice to a member shall not be required if waived in writing by that member. A majority of the
members of the Committee duly appointed shall 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
shall 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. No member of the Committee shall have any right to vote or decide upon
any matter relating solely to such member under the Plan or to vote in any case in which his
individual right to claim any benefit under the Plan is particularly involved.

      4.3 Committee’s Powers and Duties. It shall be a principal duty of the Committee to
see that the Plan is carried out, in accordance with its terms, for the exclusive benefit of
persons entitled to participate in the Plan. The Committee shall have full power to administer the
Plan in all of its details, subject to applicable requirements of law. For this purpose, the
Committee’s powers shall include, but not be limited to, the following authority, in addition to
all other powers provided by the Plan:

      (a) to make and enforce such rules and regulations as it deems necessary or proper for the
efficient administration of the Plan;

      (b) to interpret the Plan, its interpretation thereof to be final and conclusive on all
persons claiming benefits under the Plan;

      (c) to decide all questions concerning the Plan and the eligibility of any person to
participate in the Plan;

      (d) to make a determination as to the right of any person to a benefit under the Plan
(including, without limitation, to determine whether and when there has been a termination of a
Covered Employee’s employment and the cause of such termination);

      (e) to appoint such agents, counsel, accountants, consultants, claims administrator and other
persons as may be required to assist in administering the Plan;

      (f) to allocate and delegate its responsibilities under the Plan and to designate other
persons to carry out any of its responsibilities under the Plan, any such allocation, delegation or
designation to be in writing;

      (g) to sue or cause suit to be brought in the name of the Plan; and

      (h) to obtain from the Employer and from Covered Employees such information as is necessary
for the proper administration of the Plan.

      4.4 Indemnification of Committee. The Company agrees to indemnify and to defend to
the fullest extent permitted by law any member of the Committee against all liabilities, damages,
costs and expenses (including attorneys’ fees and amounts paid in settlement of any claims approved
by the Company) occasioned by any act or omission to act in connection with the Plan, if such act
or omission was in good faith.

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      4.5 Compensation, Bond and Expenses. The members of the Committee shall not receive
compensation with respect to their services for the Committee. To the extent required by
applicable law, but not otherwise, Committee members shall furnish bond or security for the
performance of their duties hereunder. Any expenses properly incurred by the Committee incident to
the administration, termination or protection of the Plan, including the cost of furnishing bond,
shall be paid by the Company.

      4.6 Claims Procedures. Claims for Plan benefits and reviews of Plan benefit claims
that have been denied or modified shall be processed in accordance with the written Plan claims
procedures that are attached hereto as Exhibit A, which procedures are hereby incorporated by
reference as a part of the Plan.

V. GENERAL PROVISIONS

      5.1 Other Participating Employers. It is contemplated that affiliates of the Company
may adopt this Plan and thereby become an “Employer” hereunder. Any such entity, whether or not
presently existing, may become a party hereto by appropriate action of its Board of Directors or
noncorporate counterpart. The provisions of the Plan shall apply separately and equally to each
Employer and its employees in the same manner as is expressly provided for the Company and its
employees, except that the determination of whether a Change of Control has occurred shall be made
based solely on the Company. Nevertheless, any Employer may incorporate in its adoption agreement
or in an amendment document specific provisions relating to the operation of the Plan, and such
provisions shall become a part of the Plan as to such Employer only. Transfer of employment among
the Company and other participating Employers shall not be considered an Involuntary Termination
hereunder unless such transfer otherwise constitutes a Good Reason event. Subject to the
provisions of Section 5.2, any participating Employer may, by appropriate action of its Board of
Directors or noncorporate counterpart, terminate its participation in the Plan. Amounts payable
hereunder shall be paid by the Employer which employs the particular Covered Employee.

      5.2 Termination and Amendment. The Plan may be amended from time to time or
terminated at the discretion of the Board; provided, however, that notwithstanding the foregoing,
the Plan may not be amended on or following a Change of Control to adversely affect the benefits or
rights to benefits (contingent or otherwise) of any Covered Employee under the Plan or terminated
on or following a Change of Control until there are no longer any benefits potentially payable
under the Plan. Further, a participating Employer may not terminate its participation in the Plan
on or following a Change of Control unless and until it no longer employs any Covered Employees and
has otherwise satisfied its obligations to pay benefits under the Plan.

      5.3 Funding; Cost of Plan. The benefits provided herein shall be unfunded and shall
be provided from the Employer’s general assets. The entire cost of the Plan shall be borne by the
Employer and no contributions shall be required of the Covered Employees.

      5.4 Plan Year. The Plan shall operate on a plan year consisting of the 12-consecutive
month period commencing on January 1 of each year; provided, however, that the first Plan Year
shall begin on the date of the approval of the Plan by the Board.

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      5.5 Nonalienation. Covered Employees shall not have any right to pledge, hypothecate,
anticipate or assign benefits or rights under the Plan, except by will or the laws of descent and
distribution.

      5.6 Not Contract of Employment. The adoption and maintenance of the Plan shall not be
deemed to be a contract of employment between the Employer and any person or to be consideration
for the employment of any person. Nothing herein contained shall be deemed to (a) give any person
the right to be retained in the employ of the Employer, (b) restrict the right of the Employer to
discharge any person at any time, (c) give the Employer the right to require any person to remain
in the employ of the Employer, or (d) restrict any person’s right to terminate his employment at
any time.

      5.7 Indemnification. If a Covered Employee shall obtain any money judgment or
otherwise prevail with respect to any litigation brought by such Covered Employee or the Employer
to enforce or interpret any provision contained herein, the Employer, to the fullest extent
permitted by applicable law, hereby indemnifies such Covered Employee for his reasonable attorneys’
fees and disbursements incurred in such litigation and hereby agrees (a) to pay in full all such
fees and disbursements and (b) to pay prejudgment interest on any money judgment obtained by such
Covered Employee from the earliest date that payment to such Covered Employee should have been made
under the Plan until such judgment shall have been paid in full, which interest shall be calculated
at the maximum nonusurious rate permitted by law.

      5.8 Payment Obligations Absolute. The Employer’s obligation to pay a Covered Employee
the amounts provided herein shall be absolute and unconditional and shall not be affected by any
circumstances, including, without limitation, any set-off, counterclaim, recoupment, defense or
other right which the Employer or any of its subsidiaries may have against such Covered Employee or
anyone else. All amounts payable by the Employer shall be paid without notice or demand.

      5.9 Withholding. Any benefits paid or provided pursuant to the Plan shall be subject
to any required tax withholding.

      5.10 Severability. Any provision in the Plan that is prohibited or unenforceable in
any jurisdiction by reason of applicable law shall, as to such jurisdiction, be ineffective only to
the extent of such prohibition or unenforceability without invalidating or affecting the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not
invalidate or render unenforceable such provision in any other jurisdiction.

      5.11 Effect of Plan. The Plan is intended to supersede all prior oral or written
severance plans of the Employer for employees in general. Further, the Plan shall be binding upon
the Employer and any successor of the Employer, by merger, consolidation, acquisition or similar
transaction, and shall inure to the benefit of and be enforceable by the Employer’s Covered
Employees.

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      EXECUTED this ___day of ___, 2005.

	 	 	 	 	 
	NEWFIELD EXPLORATION COMPANY

	 
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 
	 	

	

	 	Name:	 	 
	

	 	 	 	

	

	 	Title:	 	 
	

	 	 	 	

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EXHIBIT A

TO NEWFIELD EXPLORATION COMPANY

CHANGE OF CONTROL SEVERANCE PLAN

CLAIMS PROCEDURES

1. Purpose of Exhibit

      This Exhibit sets forth the benefit claims procedures for the Newfield Exploration Company
Change of Control Severance Plan, as amended from time to time (the “Plan”).

2. Definitions

      Capitalized terms used in this Exhibit that are not defined in this Paragraph 2 shall have the
meaning assigned to such terms in the Plan. For purposes of this Exhibit, the following terms,
where capitalized, will have the meanings provided below:

	 	(a)  	Adverse Benefit Determination: Any denial, reduction or termination of
or failure to provide or make payment (in whole or in part) of a Plan benefit,
including any denial, reduction, termination or failure to provide or make payment that
is based on a determination of a Claimant’s eligibility to participate in the Plan.
Further, any invalidation of a claim for failure to furnish written proof of loss or to
comply with the claim submission procedure will be treated as an Adverse Benefit
Determination.
	 
	 	(b)  	Benefits Administrator: The person or office to whom the Committee has
delegated day-to-day Plan administration responsibilities and who, pursuant to such
delegation, processes Plan benefit claims in the ordinary course.
	 
	 	(c)  	Claimant: An individual or an authorized representative of such
individual who has filed or desires to file a claim for a benefit or an increased
benefit under the Plan.
	 
	 	(d)  	ERISA: The Employee Retirement Income Security Act of 1974, as amended.

3. Filing of Benefit Claim

      To file a benefit claim under the Plan, a Claimant must submit to the Benefits Administrator a
written claim for Plan benefits containing a description of (a) an alleged failure to receive a
benefit payable to such Claimant under the Plan or (b) an alleged discrepancy between the amount of
a benefit owed and the amount of a benefit received by such Claimant under the Plan. In connection
with the submission of a claim, the Claimant may examine the Plan and any other relevant documents
relating to the claim, and may submit written comments relating to such claim to the Benefits
Administrator coincident with the filing of the benefit claim form. If the Claimant needs
additional information regarding his Plan benefits, he may obtain such information by submitting a
written request to the Benefits Administrator describing the additional information needed.
Failure of a Claimant to furnish a written claim description or to otherwise comply with the claim
submission procedure will invalidate such claim unless the

A-1

 

Benefits Administrator in its discretion determines that it was not reasonably possible to
comply with such procedure.

4. Processing of Benefit Claim

      Upon receipt of a fully completed benefit claim from a Claimant, the Benefits Administrator
shall determine if the Claimant’s right to the requested benefit, payable at the time or times and
in the form requested, is clear and, if so, shall process such benefit claim without resort to the
Committee. If the Benefits Administrator determines that the Claimant’s right to the requested
benefit, payable at the time or times and in the form requested, is not clear, it shall refer the
benefit claim to the Committee for review and determination, which referral shall include:

	 	(a)  	All materials submitted to the Benefits Administrator by the
Claimant in connection with the claim;
	 
	 	(b)  	A written description of why the Benefits Administrator was of
the view that the Claimant’s right to the benefit, payable at the time or times
and in the form requested, was not clear;
	 
	 	(c)  	A description of all Plan provisions pertaining to the benefit
claim;
	 
	 	(d)  	Where appropriate, a summary as to whether such Plan provisions
have in the past been consistently applied with respect to other similarly
situated Claimants; and
	 
	 	(e)  	Such other information as may be helpful or relevant to the
Committee in its consideration of the claim.

If the Claimant’s claim is referred to the Committee, the Claimant may examine any relevant
document relating to his claim and may submit written comments or other information to the
Committee to supplement his benefit claim. Within 90 days of receipt of a fully completed benefit
claim form from a Claimant that has been referred to the Committee by the Benefits Administrator
(or such longer period as may be necessary due to unusual circumstances or to enable the Claimant
to submit comments, but in any event not later than will permit the Committee sufficient time to
fully and fairly consider the claim and make a determination within the time frame provided in
Paragraph 5 below), the Committee shall consider the referral regarding the claim of the Claimant
and make a decision as to whether it is to be approved, modified or denied. If the claim is
approved, the Committee shall direct the Benefits Administrator to process the approved claim as
soon as administratively practicable.

A-2

 

5. Notification of Adverse Benefit Determination

      In any case of an Adverse Benefit Determination of a claim for a Plan benefit, the Benefits
Administrator or the Committee shall furnish written notice to the affected Claimant within a
reasonable period of time but not later than 90 days after receipt of such claim for Plan benefits
(or within 180 days if special circumstances necessitate an extension of the 90-day period and the
Claimant is informed of such extension in writing within the 90-day period and is provided with an
extension notice consisting of an explanation of the special circumstances requiring the extension
of time and the date by which the benefit determination will be rendered). Any notice that denies
a benefit claim of a Claimant in whole or in part shall, in a manner calculated to be understood by
the Claimant:

	 	(a)  	State the specific reason or reasons for the Adverse Benefit Determination;
	 
	 	(b)  	Provide specific reference to pertinent Plan provisions on which the Adverse
Benefit Determination is based;
	 
	 	(c)  	Describe any additional material or information necessary for the Claimant to
perfect the claim and explain why such material or information is necessary; and
	 
	 	(d)  	Describe the Plan’s review procedures and the time limits applicable to such
procedures, including a statement of the Claimant’s right to bring a civil action under
section 502(a) of ERISA following an Adverse Benefit Determination on review.

6. Review of Adverse Benefit Determination

      A Claimant has the right to have an Adverse Benefit Determination reviewed in accordance with
the following claims review procedure:

	 	(a)  	The Claimant must submit a written request for such review to the Committee not
later than 60 days following receipt by the Claimant of the Adverse Benefit
Determination notification;
	 
	 	(b)  	The Claimant shall have the opportunity to submit written comments, documents,
records, and other information relating to the claim for benefits to the Committee;
	 
	 	(c)  	The Claimant shall have the right to have all comments, documents, records, and
other information relating to the claim for benefits that have been submitted by the
Claimant considered on review without regard to whether such comments, documents,
records or information were considered in the initial benefit determination; and
	 
	 	(d)  	The Claimant shall have reasonable access to, and copies of, all documents,
records, and other information relevant to the claim for benefits free of charge upon
request, including (i) documents, records or other information relied upon for the
benefit determination, (ii) documents, records or other information submitted,
considered or generated without regard to whether such documents,

A-3

 

records or other information were relied upon in making the benefit determination,
and (iii) documents, records or other information that demonstrates compliance with
the standard claims procedure.

The decision on review by the Committee will be binding and conclusive upon all persons, and the
Claimant shall neither be required nor be permitted to pursue further appeals to the Committee.

7. Notification of Benefit Determination on Review

      Notice of the Committee’s final benefit determination regarding an Adverse Benefit
Determination will be furnished in writing or electronically to the Claimant after a full and fair
review. Notice of an Adverse Benefit Determination upon review will:

	 	(a)  	State the specific reason or reasons for the Adverse Benefit Determination;
	 
	 	(b)  	Provide specific reference to pertinent Plan provisions on which the Adverse
Benefit Determination is based;
	 
	 	(c)  	State that the Claimant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records, and other
information relevant to the Claimant’s claim for benefits, including (i) documents,
records or other information relied upon for the benefit determination, (ii) documents,
records or other information submitted, considered or generated without regard to
whether such documents, records or other information were relied upon in making the
benefit determination, and (iii) documents, records or other information that
demonstrates compliance with the standard claims procedure; and
	 
	 	(d)  	Describe the Claimant’s right to bring an action under section 502(a) of ERISA.

The Committee shall notify a Claimant of its determination on review with respect to the Adverse
Benefit Determination of the Claimant within a reasonable period of time but not later than 60 days
after the receipt of the Claimant’s request for review unless the Committee determines that special
circumstances require an extension of time for processing the review of the Adverse Benefit
Determination. If the Committee determines that such extension of time is required, written notice
of the extension (which shall indicate the special circumstances requiring the extension and the
date by which the Committee expects to render the determination on review) shall be furnished to
the Claimant prior to the termination of the initial 60-day review period. In no event shall such
extension exceed a period of 60 days from the end of the initial 60-day review period. In the
event such extension is due to a Claimant’s failure to submit necessary information, the period for
making the determination on review will be tolled from the date on which the notification of the
extension is sent to the Claimant until the date on which the Claimant responds to the request for
additional information.

A-4

 

8. Exhaustion of Administrative Remedies

      Completion of the claims procedures described in this document will be a condition precedent
to the commencement of any legal or equitable action in connection with a claim for benefits under
the Plan by a Claimant or by any other person or entity claiming rights individually or through a
Claimant; provided, however, that the Committee may, in its sole discretion, waive compliance with
such claims procedures as a condition precedent to any such action.

9. Payment of Benefits

      If the Benefits Administrator or Committee determines that a Claimant is entitled to a benefit
under the Plan, payment of such benefit will be made to such Claimant as soon as administratively
practicable after the date the Benefits Administrator or Committee determines that such Claimant is
entitled to such benefit or on such other date designated by the Committee in accordance with the
terms of the Plan.

10. Authorized Representatives

      An authorized representative may act on behalf of a Claimant in pursuing a benefit claim or an
appeal of an Adverse Benefit Determination. An individual or entity will only be determined to be
a Claimant’s authorized representative for such purposes if the Claimant has provided the Committee
with a written statement identifying such individual or entity as his authorized representative and
describing the scope of the authority of such authorized representative. In the event a Claimant
identifies an individual or entity as his authorized representative in writing to the Committee but
fails to describe the scope of the authority of such authorized representative, the Committee shall
assume that such authorized representative has full powers to act with respect to all matters
pertaining to the Claimant’s benefit claim under the Plan or appeal of an Adverse Benefit
Determination with respect to such benefit claim.

11. Amendments

      These procedures may be amended in accordance with the provisions of, and subject to the
limitations set forth in, Section 5.2 of the Plan.

A-5

 

EXHIBIT B

TO NEWFIELD EXPLORATION COMPANY

CHANGE OF CONTROL SEVERANCE PLAN

AGREEMENT AND RELEASE

[Form for Employee Age 40 or Over]

      THIS AGREEMENT AND RELEASE is by and between [___] (“Employee”) and Newfield
Exploration Company (“Newfield”), a Delaware corporation, having its principal place of business in
Houston, Texas.

WITNESSETH:

1 Termination. Employee’s employment with Newfield will be terminated effective 
_,                                        . Employee acknowledges and agrees that he has no
authority to act for, and will not act for, Newfield in any capacity on or after the date on which
he is terminated. Employee may not execute this Agreement and Release until on or after the date
on which Employee’s employment is terminated.

2 Consideration. On or before the fifth day after the expiration of the seven day
revocation period set forth in Paragraph 16 of this Agreement and Release, Newfield will provide
Employee with the severance payment set forth in Article III of the Newfield Exploration Company
Change of Control Severance Plan (the “Plan”) which is attached hereto and made a part of this
Agreement and Release for all purposes. This Agreement and Release is entered into by Employee in
return for Newfield’s promises herein and in the Plan to provide the severance payment to Employee
as provided in the Plan, which Employee acknowledges and agrees to be good and sufficient
consideration to which Employee is not otherwise entitled.

3 Prior Rights and Obligations. Except as herein set forth, this Agreement and
Release extinguishes all rights, if any, which Employee may have, and obligations, if any, Newfield
may have, contractual or otherwise, relating to the employment or termination of employment of
Employee with Newfield or any of the other Newfield Parties (as defined in Paragraph 7 below)
including without limitation, all rights or benefits he may have under any employment contract,
incentive compensation plan, bonus plan or stock option plan with any Newfield Party.

4 Company Assets. Employee hereby represents and warrants that he has no claim or
right, title or interest in any property designated on any Newfield Party’s books as property or
assets of any of the Newfield Parties. Promptly after the effective date of his resignation,
Employee shall deliver to Newfield any such property in his possession or control, including, if
applicable and without limitation, his personal computer, cellular telephone, keys and credit cards
furnished by any Newfield Party for his use.

5 Proprietary and Confidential Information. Employee agrees and acknowledges that the
Newfield Parties have developed and own valuable “Proprietary and Confidential

B-1

 

Information” which constitutes valuable and unique property including, without limitation,
concepts, ideas, plans, strategies, analyses, surveys, and proprietary information related to the
past, present or anticipated business of the various Newfield Parties. Except as may be required
by law, Employee agrees that he will not at any time disclose to others, permit to be disclosed,
use, permit to be used, copy or permit to be copied, any such Proprietary and Confidential
Information (whether or not developed by Employee) without Newfield’s prior written consent.
Except as may be required by law, Employee further agrees to maintain in confidence any Proprietary
and Confidential Information of third parties received or of which he has knowledge as a result of
his employment with Newfield or any Newfield Party.

6 Cooperation. Employee shall cooperate with the Newfield Parties to the extent
reasonably required in all matters relating to his employment or the winding up of his pending work
on behalf of any Newfield Party and the orderly transfer of any such pending work as designated by
Newfield. This obligation of cooperation shall continue indefinitely subject to Employee’s
reasonable availability and shall include, without limitation, assisting Newfield and its counsel
in preparing and defending against any claims which may be brought against Newfield or any Newfield
Party or responding to any inquiry by any governmental agency or stock exchange. Newfield’s
requests for Employee’s cooperation as may be required from time to time shall be as commercially
reasonable and Employee agrees that he shall be commercially reasonable in providing such
cooperation, taking into account the needs of the Newfield Parties and the position he may have
with another employer at the time such cooperation is required. Employee shall take such further
action and execute such further documents as may be reasonably necessary or appropriate in order to
carry out the provisions and purposes of this Agreement and Release.

7 Newfield Parties. Employee agrees that Newfield, its parent, sister, affiliated and
subsidiary companies, past and present, and their respective employees, officers, directors,
stockholders, agents, representatives, partners, predecessors and successors, past or present, and
all benefit plans sponsored by any of them, past or present, shall be defined collectively,
including Newfield, as the “Newfield Parties” and each of them, corporate or individual,
individually as a “Newfield Party.”

8 Employee’s Warranty and Representation. Employee represents, warrants and agrees
that he has not filed any claims, appeals, complaints, charges or lawsuits against any of the
Newfield Parties with any governmental agency or court. Employee also represents, warrants and
agrees that, except as prohibited by law, he will not file or permit to be filed or accept benefit
from any claim, complaint or petition filed with any court by him or on his behalf at any time
hereafter; provided, however, this shall not limit Employee from enforcing his rights under this
Agreement and Release. Further, Employee represents and warrants that no other person or entity
has any interest or assignment of any claims or causes of action, if any, he may have against any
Newfield Party, which have been satisfied fully by this Agreement and Release and which he now
releases in their entirety, and that he has not sold, assigned, transferred, conveyed or otherwise
disposed of any of the claims, demands, obligations, or causes of action

B-2

 

referred to in this Agreement and Release, and that he has the sole right and exclusive authority
to execute this Agreement and Release and receive the consideration provided.

9 Release. Employee agrees to release, acquit and discharge and does hereby release,
acquit and discharge the Newfield Parties, individually and collectively, from any and all claims
and from any and all causes of action against any of the Newfield Parties, of any kind or
character, whether now known or not known, he may have against any such Newfield Party including,
but not limited to, any claim for salary, benefits, expenses, costs, damages, compensation,
remuneration or wages; and all claims or causes of action arising from his employment, termination
of employment, or any alleged discriminatory employment practices, including but not limited to any
and all claims or causes of action arising under the Age Discrimination in Employment Act, as
amended, 29 U.S.C. § 621 et seq, Title VII of the Civil Rights Act of 1964, as amended, the
Americans With Disabilities Act, 42 U.S.C. § 1981, the Employee Retirement Income Security Act, the
Family and Medical Leave Act, the Texas Commission on Human Rights Act, and any other federal,
state or local laws, whether statutory or common, contract or tort. This release also applies to
any claims brought by any person or agency or class action under which Employee may have a right or
benefit.

10 No Admissions. Employee expressly understands and agrees that the terms of this
Agreement and Release are contractual and not merely recitals and that this Agreement and Release
does not constitute evidence of unlawful conduct or wrongdoing by Newfield. By his execution of
this Agreement and Release, Employee acknowledges and agrees that (i) he knows of no act, event, or
omission by any Newfield Party which is unlawful or violates any law, governmental rule or
regulation, or any rule or regulation of any stock exchange, (ii) he has not committed, during his
employment with Newfield or any Newfield Party, any act which is unlawful or which violates any
governmental rule or regulation or any rule or regulation of any stock exchange, (iii) he has not
requested any Newfield Party to commit any unlawful act or violate any governmental rule or
regulation or any rule or regulation of any stock exchange, and (iv) neither he nor any other
person employed by or contracting with any Newfield Party has been subjected to any adverse action
because any such person refused to commit any unlawful act or violate any governmental rule or
regulation or any rule or regulation of any stock exchange.

11 Enforcement of Agreement and Release. No waiver or non-action with respect to any
breach by the other party of any provision of this Agreement and Release, nor the waiver or
non-action with respect to any breach of the provisions of similar agreements with other employees
shall be construed to be a waiver of any succeeding breach of such provision, or as a waiver of the
provision itself. Should any provisions hereof be held to be invalid or wholly or partially
unenforceable, such provisions shall be revised and reduced in scope so as to be valid and
enforceable.

12 Choice of Law. This Agreement and Release shall be governed by and construed and
enforced, in all respects, in accordance with the law of the State of Texas without regard to the
principles of conflict of law except as preempted by federal law.

B-3

 

13 Merger. This Agreement and Release supersedes, replaces and merges all previous
agreements and discussions relating to the same or similar subject matters between Employee and
Newfield and constitutes the entire agreement between Employee and Newfield with respect to the
subject matter of this Agreement and Release. This Agreement and Release may not be changed or
terminated orally, and no change, termination or waiver of this Agreement and Release or any of the
provisions herein contained shall be binding unless made in writing and signed by all parties, and
in the case of Newfield, by an authorized officer.

14 No Derogatory Comments. Except as required by judicial process or governmental
rule or regulation, Employee shall refrain from making public or private comments relating to any
Newfield Party which are derogatory or which may tend to injure any such party in such party’s
business, public or private affairs.

15 Confidentiality. Employee agrees that he will not disclose the terms of this
Agreement and Release or the consideration received from Newfield to any other person, except his
attorney or financial advisors and only on the condition that they keep such information strictly
confidential; provided, however, that the foregoing obligation of confidence shall not apply to
information that is required to be disclosed by any applicable law, rule or regulation of any
governmental authority.

16 Rights Under the Older Worker Benefit Protection Act and the Age Discrimination and
Employment Act. Employee acknowledges and agrees:

      16.1 that he has at least forty-five days to review this Agreement and Release, along with the
demographic information attached hereto as Attachment 1;

      16.2 that he has been advised in writing to consult with an attorney regarding the terms of
this Agreement and Release prior to executing this Agreement and Release;

      16.3 that, if he executes this Agreement and Release, he has seven days following the
execution of this Agreement and Release to revoke this Agreement and Release, by submitting, in
writing, notice of such revocation to Newfield;

      16.4 that this Agreement and Release shall not become effective or enforceable until the
revocation period has expired;

      16.5 that he does not, by the terms of this Agreement and Release, waive claims or rights that
may arise after the date he executes this Agreement and Release;

      16.6 that he is receiving, pursuant to this Agreement and Release, consideration in addition
to anything of value to which he is already entitled; and

      16.7 that this Agreement and Release is written in such a manner that he understands his
rights and obligations.

17 Agreement and Release Voluntary. Employee acknowledges and agrees that he has
carefully read this Agreement and Release and understands that it is a release of all

B-4

 

claims, known and unknown, past or present including all claims under the Age Discrimination in
Employment Act. He further agrees that he has entered into this Agreement and Release for the
above stated consideration. He warrants that he is fully competent to execute this Agreement and
Release which he understands to be contractual. He further acknowledges that he executes this
Agreement and Release of his own free will, after having a reasonable period of time to review,
study and deliberate regarding its meaning and effect, and after being advised to consult an
attorney, and without reliance on any representation of any kind or character not expressly set
forth herein. Finally, he executes this Agreement and Release fully knowing its effect and
voluntarily for the consideration stated above.

18 Notices. Any notices required or permitted to be given under this Agreement and
Release shall be properly made if delivered in the case of Newfield to:

Newfield Exploration Company

363 N. Sam Houston Parkway East, Suite 2020

Houston, Texas 77060

Attention: Employee Relations, Personal and Confidential

and in the case of Employee to:

_________________________

_________________________

_________________________

[SIGNATURE PAGE FOLLOWS]

B-5

 

      IN WITNESS WHEREOF, the parties have caused this Agreement and Release to be executed in
multiple counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument, this ___day of                                         , ___, to be
effective the eighth day following execution by                                          unless earlier revoked.

	 	 	 
	 

	 	 
	Date

	 	EMPLOYEE
	 
	 	 
	 
	 	 
	 

	 	 
	Date

	 	NEWFIELD EXPLORATION COMPANY

	 	 	 	 	 
	By:
	 	 	 	 
	 
	 	

	

	 	Name:	 	 
	

	 	 	 	

	

	 	Title:	 	 
	

	 	 	 	

B-6

 

AGREEMENT AND RELEASE

[Form for Employee Under Age 40]

      THIS AGREEMENT AND RELEASE is by and between [                                        ] (“Employee”) and Newfield
Exploration Company (“Newfield”), a Delaware corporation, having its principal place of business in
Houston, Texas.

WITNESSETH:

19 Termination. Employee’s employment with Newfield will be terminated effective             . Employee acknowledges and agrees that he has no authority to
act for, and will not act for, Newfield in any capacity on or after the date on which he is
terminated. Employee may not execute this Agreement and Release until on or after the date on
which Employee’s employment is terminated.

20 Consideration. If Employee signs and returns this Agreement, then on or before the
fifth day thereafter, Newfield will provide Employee with the severance payment set forth in
Article III of the Newfield Exploration Company Change of Control Severance Plan (the “Plan”) which
is attached hereto and made a part of this Agreement and Release for all purposes. This Agreement
and Release is entered into by Employee in return for Newfield’s promises herein and in the Plan to
provide the severance payment to Employee as provided in the Plan, which Employee acknowledges and
agrees to be good and sufficient consideration to which Employee is not otherwise entitled.

21 Prior Rights and Obligations. Except as herein set forth, this Agreement and
Release extinguishes all rights, if any, which Employee may have, and obligations, if any, Newfield
may have, contractual or otherwise, relating to the employment or termination of employment of
Employee with Newfield or any of the other Newfield Parties (as defined in Paragraph 7 below)
including without limitation, all rights or benefits he may have under any employment contract,
incentive compensation plan, bonus plan or stock option plan with any Newfield Party.

22 Company Assets. Employee hereby represents and warrants that he has no claim or
right, title or interest in any property designated on any Newfield Party’s books as property or
assets of any of the Newfield Parties. Promptly after the effective date of his resignation,
Employee shall deliver to Newfield any such property in his possession or control, including, if
applicable and without limitation, his personal computer, cellular telephone, keys and credit cards
furnished by any Newfield Party for his use.

23 Proprietary and Confidential Information. Employee agrees and acknowledges that
the Newfield Parties have developed and own valuable “Proprietary and Confidential Information”
which constitutes valuable and unique property including, without limitation, concepts, ideas,
plans, strategies, analyses, surveys, and proprietary information related to the past, present or
anticipated business of the various Newfield Parties. Except as may be required by law, Employee
agrees that he will not at any time disclose to others, permit to be disclosed, use, permit to be
used, copy or permit to be

B-7

 

copied, any such Proprietary and Confidential Information (whether or not developed by Employee)
without Newfield’s prior written consent. Except as may be required by law, Employee further
agrees to maintain in confidence any Proprietary and Confidential Information of third parties
received or of which he has knowledge as a result of his employment with Newfield or any Newfield
Party.

24 Cooperation. Employee shall cooperate with the Newfield Parties to the extent
reasonably required in all matters relating to his employment or the winding up of his pending work
on behalf of any Newfield Party and the orderly transfer of any such pending work as designated by
Newfield. This obligation of cooperation shall continue indefinitely subject to Employee’s
reasonable availability and shall include, without limitation, assisting Newfield and its counsel
in preparing and defending against any claims which may be brought against Newfield or any Newfield
Party or responding to any inquiry by any governmental agency or stock exchange. Newfield’s
requests for Employee’s cooperation as may be required from time to time shall be as commercially
reasonable and Employee agrees that he shall be commercially reasonable in providing such
cooperation, taking into account the needs of the Newfield Parties and the position he may have
with another employer at the time such cooperation is required. Employee shall take such further
action and execute such further documents as may be reasonably necessary or appropriate in order to
carry out the provisions and purposes of this Agreement and Release.

25 Newfield Parties. Employee agrees that Newfield, its parent, sister, affiliated
and subsidiary companies, past and present, and their respective employees, officers, directors,
stockholders, agents, representatives, partners, predecessors and successors, past or present, and
all benefit plans sponsored by any of them, past or present, shall be defined collectively,
including Newfield, as the “Newfield Parties” and each of them, corporate or individual,
individually as a “Newfield Party.”

26 Employee’s Warranty and Representation. Employee represents, warrants and agrees
that he has not filed any claims, appeals, complaints, charges or lawsuits against any of the
Newfield Parties with any governmental agency or court. Employee also represents, warrants and
agrees that, except as prohibited by law, he will not file or permit to be filed or accept benefit
from any claim, complaint or petition filed with any court by him or on his behalf at any time
hereafter; provided, however, this shall not limit Employee from enforcing his rights under this
Agreement and Release. Further, Employee represents and warrants that no other person or entity
has any interest or assignment of any claims or causes of action, if any, he may have against any
Newfield Party, which have been satisfied fully by this Agreement and Release and which he now
releases in their entirety, and that he has not sold, assigned, transferred, conveyed or otherwise
disposed of any of the claims, demands, obligations, or causes of action referred to in this
Agreement and Release, and that he has the sole right and exclusive authority to execute this
Agreement and Release and receive the consideration provided.

27 Release. Employee agrees to release, acquit and discharge and does hereby release,
acquit and discharge the Newfield Parties, individually and collectively, from any and all claims
and from any and all causes of action against any of the Newfield Parties,

B-8

 

of any kind or character, whether now known or not known, he may have against any such Newfield
Party including, but not limited to, any claim for salary, benefits, expenses, costs, damages,
compensation, remuneration or wages; and all claims or causes of action arising from his
employment, termination of employment, or any alleged discriminatory employment practices,
including but not limited to any and all claims or causes of action arising under the Age
Discrimination in Employment Act, as amended, 29 U.S.C. § 621 et seq, Title VII of the Civil Rights
Act of 1964, as amended, the Americans With Disabilities Act, 42 U.S.C. § 1981, the Employee
Retirement Income Security Act, the Family and Medical Leave Act, the Texas Commission on Human
Rights Act, and any other federal, state or local laws, whether statutory or common, contract or
tort. This release also applies to any claims brought by any person or agency or class action
under which Employee may have a right or benefit.

28 No Admissions. Employee expressly understands and agrees that the terms of this
Agreement and Release are contractual and not merely recitals and that this Agreement and Release
does not constitute evidence of unlawful conduct or wrongdoing by Newfield. By his execution of
this Agreement and Release, Employee acknowledges and agrees that (i) he knows of no act, event, or
omission by any Newfield Party which is unlawful or violates any law, governmental rule or
regulation, or any rule or regulation of any stock exchange, (ii) he has not committed, during his
employment with Newfield or any Newfield Party, any act which is unlawful or which violates any
governmental rule or regulation or any rule or regulation of any stock exchange, (iii) he has not
requested any Newfield Party to commit any unlawful act or violate any governmental rule or
regulation or any rule or regulation of any stock exchange, and (iv) neither he nor any other
person employed by or contracting with any Newfield Party has been subjected to any adverse action
because any such person refused to commit any unlawful act or violate any governmental rule or
regulation or any rule or regulation of any stock exchange.

29 Enforcement of Agreement and Release. No waiver or non-action with respect to any
breach by the other party of any provision of this Agreement and Release, nor the waiver or
non-action with respect to any breach of the provisions of similar agreements with other employees
shall be construed to be a waiver of any succeeding breach of such provision, or as a waiver of the
provision itself. Should any provisions hereof be held to be invalid or wholly or partially
unenforceable, such provisions shall be revised and reduced in scope so as to be valid and
enforceable.

30 Choice of Law. This Agreement and Release shall be governed by and construed and
enforced, in all respects, in accordance with the law of the State of Texas without regard to the
principles of conflict of law except as preempted by federal law.

31 Merger. This Agreement and Release supersedes, replaces and merges all previous
agreements and discussions relating to the same or similar subject matters between Employee and
Newfield and constitutes the entire agreement between Employee and Newfield with respect to the
subject matter of this Agreement and Release. This Agreement and Release may not be changed or
terminated orally, and no change, termination or waiver of this Agreement and Release or any of the
provisions herein

B-9

 

contained shall be binding unless made in writing and signed by all parties, and in the case of
Newfield, by an authorized officer.

32 No Derogatory Comments. Except as required by judicial process or governmental
rule or regulation, Employee shall refrain from making public or private comments relating to any
Newfield Party which are derogatory or which may tend to injure any such party in such party’s
business, public or private affairs.

33 Confidentiality. Employee agrees that he will not disclose the terms of this
Agreement and Release or the consideration received from Newfield to any other person, except his
attorney or financial advisors and only on the condition that they keep such information strictly
confidential; provided, however, that the foregoing obligation of confidence shall not apply to
information that is required to be disclosed by any applicable law, rule or regulation of any
governmental authority.

34 Agreement and Release Voluntary. Employee acknowledges and agrees that he has
carefully read this Agreement and Release and understands that it is a release of all claims, known
and unknown, past or present. He further agrees that he has entered into this Agreement and
Release for the above stated consideration which is in addition to anything of value to which he is
already entitled. He warrants that he is fully competent to execute this Agreement and Release
which he understands to be contractual. He further acknowledges that he executes this Agreement
and Release of his own free will, after having a reasonable period of time to review, study and
deliberate regarding its meaning and effect, and after being advised to consult an attorney, and
without reliance on any representation of any kind or character not expressly set forth herein.
Finally, he executes this Agreement and Release fully knowing its effect and voluntarily for the
consideration stated above.

35 Notices. Any notices required or permitted to be given under this Agreement and
Release shall be properly made if delivered in the case of Newfield to:

Newfield Exploration Company

363 N. Sam Houston Parkway East, Suite 2020

Houston, Texas 77060

Attention: Employee Relations, Personal and Confidential

and in the case of Employee to:

_________________________

_________________________

_________________________

[SIGNATURE PAGE FOLLOWS]

B-10

 

      IN WITNESS WHEREOF, the parties have caused this Agreement and Release to be executed in
multiple counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument, this ___day of ________, ___.

	 	 	 
	 

	 	 
	Date

	 	EMPLOYEE
	 
	 	 
	 
	 	 
	 

	 	 
	Date

	 	NEWFIELD EXPLORATION COMPANY

	 	 	 	 	 
	By:
	 	 	 	 
	 
	 	

	

	 	Name:	 	 
	

	 	 	 	

	

	 	Title:	 	 
	

	 	 	 	

B-11

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