Document:

exv10w8

 

Exhibit 10.8

COMSTOCK RESOURCES, INC.

1999 Long-Term Incentive Plan

(As Restated April 1, 2001)

I. GENERAL

     1. Purpose. The COMSTOCK RESOURCES, INC. 1999 Long-Term Incentive Plan (the “1999
Plan”) has been established by COMSTOCK RESOURCES, INC. (the “Company”) to:

	 	(a)  	attract and retain key executive and managerial employees;
	 
	 	(b)  	motivate participating employees, by means of appropriate
incentive, to achieve long-range goals;
	 
	 	(c)  	attract and retain well-qualified individuals to serve as
members of the Company’s Board of Directors;
	 
	 	(d)  	provide incentive compensation opportunities which are
competitive with those of other public corporations; and
	 
	 	(e)  	further identify Participants’ interests with those of the
Company’s other stockholders through compensation alternatives based on the
Company’s common stock;

and thereby promote the long-term financial interest of the Company and its Subsidiaries, including
the growth in value of the Company’s equity and enhancement of long-term shareholder return.

     2. Effective Date. Subject to the approval of the holders of a majority of the Stock
of the Company present, or represented and entitled to vote at the Company’s 1999 annual meeting of
its stockholders, the 1999 Plan shall be effective as of April 1, 1999, provided, however, that
awards made under the 1999 Plan prior to such approval of the 1999 Plan by stockholders of the
Company are contingent on such approval of the 1999 Plan by the stockholders of the Company and
shall be null and void if such approval of the stockholders of the Company is withheld. Further,
in addition to any other restrictions on transferability set forth herein, no Participant shall
have any right to sell, assign, transfer, pledge or place any encumbrance on any award or Stock
underlying an award prior to such stockholder approval of this 1999 Plan. The 1999 Plan shall be
unlimited in duration; provided, however, that no awards of Incentive Stock Options may be
made under the 1999 Plan after ten (10) years from the earlier of the date of its adoption by the
Board or the date of its approval by the stockholders of the Company.

     3. Definitions. The following definitions are applicable to the 1999 Plan.

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

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

     “Committee” means the Compensation Committee of the Board.

 

 

     “Disability” means the inability of a Participant, by reason of a physical or mental
impairment, to engage in any substantial gainful activity, of which the Board shall be the sole
judge.

     “Effective Date” means April 1, 1999.

     “Fair Market Value” of any Stock means, as of any date, the last sale price for such Stock as
reported by the National Association of Securities Dealers, Inc. Automated Quotation System -
National Market System (or by the principal consolidated transaction reporting system for any other
national securities exchange which is the principal exchange on which the stock is listed or
accepted for trading) on the date or, if Stock is not traded on that date, on the next preceding
date on which Stock was traded.

     “Non-employee Director” means each member of the Board who is not a full-time employee of the
Company.

     “Option Date” means, with respect to any Stock Option, the date on which the Stock Option is
awarded under the 1999 Plan.

     “Participant” means (i) any employee of the Company or any Subsidiary who is selected by the
Board or Committee to participate in the 1999 Plan; and (ii) to the extent provided in paragraphs
I.5(b) and III.2, any Non-employee Director, to the extent provided in paragraph I.5(b).

     “Performance Unit” shall have the meaning ascribed to it in Part V.

     “Permitted Transferees” means members of the immediate family of the Participant, trusts for
the benefit of such immediate family members, and partnerships in which substantially all of the
interests are held by the Participant and members of his or her immediate family. An immediate
family member shall mean any descendant (children, grandchildren and more remote descendants),
including step-children and relationships arising from legal adoption, and any spouse of a
Participant or a Participant’s descendant.

     “Related Company” means any corporation during any period in which it is a Subsidiary, or
during any period in which it directly or indirectly owns 50% or more of the total combined voting
power of all classes of stock of the Company that are entitled to vote.

     “Restricted Period” has the meaning ascribed to it in Part IV.

     “Restricted Stock” has the meaning ascribed to it in Part IV.

     “Retirement” means (i) termination of employment in accordance with the retirement procedures
set by the Company from time to time; (ii) an employee’s termination of employment or a
Non-employee Director’s ceasing to serve as a member of the Board because of Disability; or (iii)
an employee’s termination of employment or a Non-employee Director’s ceasing to serve as a member
of the Board voluntarily with the consent of the Company (of which the Committee shall be the sole
judge).

     “Stock” means the Company’s common stock, $.50 par value per share.

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     “Stock Option” means the right of a Participant to purchase Stock pursuant to an Incentive
Stock Option or Non-Qualified Option awarded pursuant to the provisions of the 1999 Plan.

     “Subsidiary” means any corporation during any period of which 50% or more of the total
combined voting power of all classes of stock entitled to vote is owned, directly or indirectly, by
the Company.

     4. Administration. The authority to manage and control the operation and
administration of the 1999 Plan shall be vested in the Committee. Subject to the provisions of the
1999 Plan, the Committee will have authority to select employees to receive awards of Stock
Options, Restricted Stock and/or Performance Units, to determine the time or times of receipt, to
determine the types of awards and the number of shares covered by the awards, to establish the
terms, conditions, performance criteria, restrictions, and other provisions of such awards, to
determine the number and value of Performance Units awarded and earned, and to cancel or suspend
awards. In making such award determinations, the Committee may take into account the nature of
services rendered by the employee, his or her present and potential contribution to the Company’s
success and such other factors as the Committee deems relevant. The Committee is authorized to
interpret the 1999 Plan, to establish, amend, and rescind any rules and regulations relating to the
1999 Plan, to determine the terms and provisions of any agreements made pursuant to the 1999 Plan,
and to make all other determinations that may be necessary or advisable for the administration of
the 1999 Plan.

     A majority of the Committee shall constitute a quorum, and the acts of a majority of the
members present at any meeting at which a quorum is present, or acts approved in writing by all
members of the Committee, shall be the acts of the Committee, unless provisions to the contrary are
embodied in the Company’s Bylaws or resolutions duly adopted by the Board. All actions taken and
decisions and determinations made by the Board or the Committee pursuant to the Plan shall be
binding and conclusive on all persons interested in the 1999 Plan. No member of the Board or the
Committee shall be liable for any action or determination taken or made in good faith with respect
to the 1999 Plan.

     Notwithstanding the foregoing, all authority to exercise discretion with respect to the
participation in the 1999 Plan of persons who are “officers” within the meaning of the applicable
Securities and Exchange Commission rules relating to Section 16 of the Securities Exchange Act of
1934, as amended, and/or directors of the Company, or the timing, pricing and amounts of awards
granted under the 1999 Plan to such officers and directors, shall be vested in (a) the Board, or
(b) the Committee, if consisting of two or more directors each of whom is a non-employee director
within the meaning ascribed to such term in Rule 16b-3 promulgated under the Securities Exchange
Act of 1934, as amended, or within any successor definition or any successor rule.

     5. Participation. (a) Employees. Subject to the terms and conditions of the
1999 Plan, the Committee shall determine and designate, from time to time, the key executives and
managerial employees of the Company and/or its Subsidiaries who will participate in the 1999 Plan.
In the discretion of the Committee, an eligible employee may be awarded Stock Options, Restricted
Stock or Performance Units or any combination thereof, and more than one award may be granted to a
Participant. Except as otherwise agreed to by the Company and the Participant, any

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award under the 1999 Plan shall not affect any previous award to the Participant under the 1999 Plan or any other
plan maintained by the Company or its Subsidiaries.

          (b) Non-employee Directors. Each Non-employee Director shall be granted without
further action by the Board or the Committee a Non-Qualified Stock Option to purchase 10,000 shares
of Stock at the close of business of each annual meeting of stockholders of the Company. An
individual who is first elected and commences serving as a Non-employee Director shall also be
granted without further action by the Board or the Committee a Non-Qualified Stock Option for
10,000 shares of Stock on the date of such election as a director.

     The Non-Qualified Stock Options shall be fully vested and exercisable by each Non-employee
Director after the Director has completed six continuous months of service as a member of the Board
after the Option Date (unless his service terminates during such period by reason of death or
Disability). The term of each Non-Qualified Stock Option shall be five (5) years from the Option
Date, and the exercise price shall be 100% of the Fair Market Value of a share of Stock as of the
Option Date. The full purchase price of each share of Stock purchased upon exercise of a
Non-Qualified Stock Option shall be paid in the manner set forth in Article III, paragraph 3
hereof. All outstanding options become 100% vested and exercisable if service as a member of the
Board terminates by reason of death, Disability or Retirement.

     6. Shares Subject to the 1999 Plan. The shares of Stock with respect to which awards
may be made under the 1999 Plan shall be either authorized and unissued shares or authorized and
issued shares held in the treasury by the Company (including, in the discretion of the Committee,
shares purchased in the market).

     (a) Awards to Employees. Subject to the provisions of paragraph I.10, the number of
shares of Stock available under the 1999 Plan for the grant of Stock Options, Performance Units and
Restricted Stock to key executive and managerial employees shall not exceed 1,200,000 shares in the
aggregate. The number of shares of Stock available under the 1999 Plan for the grant of
non-qualified stock options, Performance Units and Restricted Stock shall be increased, as of the
first day of each fiscal year commencing January 1, 2000, , by one percent (1%) of the then current
number of shares of Stock outstanding. In addition, shares of Stock available under the 1991
Long-Term Incentive Plan (the “1991 Plan”) which remain available at the Effective Date of the 1999
Plan (58,630 shares) shall be available for grant under the 1999 Plan. If, for any reason, any
award under the 1999 Plan or the 1991 Plan otherwise distributable in shares of Stock, or any
portion of the award, shall expire, terminate or be forfeited or canceled, or be settled in cash
pursuant to the terms of the 1999 Plan or the 1991 Plan and, therefore, any such shares are no
longer distributable under the award, such shares of Stock shall again be available for award under
the 1999 Plan.

     (b) Awards to Non-Employee Directors. Subject to the provisions of paragraph I.10, the
number of shares of Stock available under the 1999 Plan for the grant of Options to Non-employee
Directors shall not exceed 225,000 shares, which includes 170,000 shares remaining available from
the 1991 Plan for grant to Non-employee Directors at the Effective Date. The number of shares of
Stock available under the 1999 Plan for the grant of Options to Non-employee Directors shall be
increased, as of the first day of each fiscal year commencing January 1, 2000, by 50,000 shares.
If, for any reason, any Option award to a Non-employee Director under the 1999 Plan or the 1991
Plan, or any portion of such award, shall expire, terminate or be forfeited or canceled, or be
settled in cash pursuant to the

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terms of the 1999 Plan or the 1991 Plan and, therefore, any such shares are no longer distributable
under the award, such shares of Stock shall again be available for award to Non-employee Directors
under the 1999 Plan.

     (c) Annual Limit on Grants to Employees. Subject to the provisions of paragraph
I.10, the number of shares of Stock with respect to which Options under the 1999 Plan may be
granted in any calendar year to any employee shall not exceed 1,000,000 shares.

     7. Compliance With Applicable Laws and Withholding of Taxes. Notwithstanding
any other provision of the 1999 Plan, the Company shall have no liability to issue any shares of
Stock under the 1999 Plan unless such issuance would comply with all applicable laws and the
applicable requirements of any securities exchange or similar authority. Prior to the issuance of
any shares of Stock under the 1999 Plan, the Company may require a written statement that the
recipient is acquiring the shares for investment and not for the purpose or with the intention of
distributing as amended, the shares. In the case of a Participant who is subject to Section 16(a)
and 16(b) of the Securities Exchange Act of 1934, as amended, the Committee may, at any time, add
such conditions and limitations to any election to satisfy tax withholding obligations through the
withholding or surrender of shares of Stock as the Committee, in its sole discretion, deems
necessary or desirable to comply with Section 16(a) or 16(b) and the rules and regulations
thereunder or to obtain any exemption therefrom. All awards and payments under the 1999 Plan to
employees are subject to withholding of all applicable taxes, which withholding obligations may be
satisfied, with the consent of the Committee, through the surrender of shares of Stock which the
Participant already owns, or to which a Participant is otherwise entitled under the 1999 Plan.

     8. Transferability. Incentive Stock Options, Performance Units, and, during the
period of restriction, Restricted Stock awarded under the 1999 Plan are not transferable except as
designated by the Participant by will or by the laws of descent and distribution. Incentive Stock
Options may be exercised during the lifetime of the Participant only by the Participant or his
guardian or legal representative. If expressly permitted by the terms of the stock option
agreement, Non-Qualified Stock Options may be transferred by a Participant to Permitted
Transferees, provided that there is not any consideration for the transfer.

     9. Employment and Stockholder Status. The 1999 Plan does not constitute a contract of
employment, and selection as a Participant will not give any employee the right to be retained in
the employ of the Company or any Subsidiary. The 1999 Plan does not constitute or serve as
evidence of an agreement or understanding, express or implied, that the Company will retain a
director for any period of time. Subject to the provisions of paragraph IV.3(a), no award under
the 1999 Plan shall confer upon the holder thereof any right as a stockholder of the Company prior
to the date on which he fulfills all service requirements and other conditions for receipt of
shares of Stock. If the redistribution of shares is restricted pursuant to paragraph I.7,
certificates representing such shares may bear a legend referring to such restrictions.

     10. Adjustments to Number of Shares Subject to the 1999 Plan. In the event of any
change in the outstanding shares of Stock of the Company by reason of any stock dividend, split,
spinoff, recapitalization, merger, consolidation, combination, exchange of shares or other similar
change, the aggregate number of shares of Stock with respect to which awards may be made under the
1999 Plan, the terms and the

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number of shares of any outstanding Stock Options, Performance Units,
or Restricted Stock, and the purchase price of a share of Stock under Stock Options, may be equitably adjusted by
the Committee in its sole discretion.

     11. Change in Control. Notwithstanding any other provision of the 1999 Plan, in the
event of a change in control, all outstanding Stock Options and Restricted Stock will automatically
become fully exercisable and/or vested, and Performance Units may be paid out in such manner and
amounts as determined by the Committee. For purposes of this paragraph 11, a Change in Control of
the Company shall be deemed to have taken place if, without the approval or recommendation of a
majority of the then existing Board of the Company:

	 	(a)  	a third person shall cause or bring about
(through solicitation of proxies or otherwise) the removal or
resignation of a majority of the then existing members of the Board or
if a third person causes or brings about (through solicitation of
proxies or otherwise) an increase in the size of the Board such that
the then existing members of the Board thereafter represent a minority
of the total number of persons comprising the entire Board;
	 
	 	(b)  	a third person, including a “group” as defined
in Section 13(d)(3) of the Securities Exchange Act of 1934, as amended,
becomes the beneficial owner of shares of any class of the Company’s
stock having 20% or more of the total number of votes that may be cast
for the election of directors of the Company;
	 
	 	(c)  	the stockholders of the Company approve a
definitive agreement for the merger or other business combination of
the Company with or into another corporation pursuant to which the
Company will not survive or will survive only as a subsidiary of
another corporation, for the sale or other disposition of all or
substantially all of the assets of the Company, or any combination of
the foregoing.

     For purposes hereof, a person will be deemed to be the beneficial owner of any voting
securities of the Company which it would be considered to beneficially own under Securities and
Exchange Commission Rule 13d-3 (or any similar or superseding statute or rule from time to time in
effect).

     12. Agreement With Company. At the time of any awards under the 1999 Plan, the
Committee will require a Participant to enter into an agreement with the Company in a form
specified by the Committee, agreeing to the terms and conditions of the 1999 Plan and to such
additional terms and conditions, not inconsistent with the 1999 Plan, as the Committee may, in its
sole discretion, prescribe.

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     13. Amendment and Termination of 1999 Plan. Subject to the following provisions of
this paragraph 13, the Board may at any time and in any way amend, suspend or terminate the 1999
Plan. No amendment of the 1999 Plan and, except as provided in paragraph I.10, no action by the
Board shall, without further approval of the stockholders of the Company, materially increase the
total number of shares of Stock with respect to which awards may be made under the 1999 Plan,
materially increase the benefits accruing to Participants under the 1999 Plan or materially modify
the requirements as to eligibility for participation in the 1999 Plan, if stockholder approval of
such amendment is a condition to the availability of the exemption provided by Securities and
Exchange Commission Rule 16b-3 or of the Code at the time such amendment is adopted. Further, the
formula provisions of paragraph I.5 may be amended no more than once every twelve months, other
than to comport with changes in the Code. No amendment, suspension or termination of the 1999 Plan
shall alter or impair any Stock Option, share of Restricted Stock or Performance Unit previously
awarded under the 1999 Plan without the consent of the holder thereof.

II. INCENTIVE STOCK OPTIONS

     1. Definition. The award of an Incentive Stock Option under the 1999 Plan entitles
the Participant to purchase shares of Stock at a price fixed at the time the option is awarded,
subject to the following terms of this Part II.

     2. Eligibility. The Committee shall designate the Participants to whom Incentive
Stock Options, as described in section 422A(b) of the Code or any successor section thereto, are to
be awarded under the 1999 Plan and shall determine the number of option shares to be offered to
each of them. Incentive Stock Options shall be awarded only to key employees of the Company, and
no Non-employee Director shall be eligible to receive an award of an Incentive Stock Option. In no
event shall the aggregate Fair Market Value (determined at the time the option is awarded) of Stock
with respect to which Incentive Stock Options are exercisable for the first time by an individual
during any calendar year (under all plans of the Company and all Related Companies) exceed
$100,000.

     3. Price. The purchase price of a share of Stock under each Incentive Stock Option
shall be determined by the Committee, provided, however, that in no event shall such price be less
than the greater of (a) 100% of the Fair Market Value of a share of Stock as of the Option Date (or
110% of such Fair Market Value if the holder of the Incentive Stock Option owns stock possessing
more than 10% of the combined voting power of all classes of stock of the Company or any Related
Company) or (b) the par value of a share of Stock on such date. To the extent provided by the
Committee, the full purchase price of each share of Stock purchased upon the exercise of any
Incentive Stock Option shall be paid in cash or in shares of Stock (valued at Fair Market Value as
of the day of exercise), or in any combination thereof, at the time of such exercise and, as soon
as practicable thereafter, a certificate representing the shares so purchased shall be delivered to
the person entitled thereto.

     4. Exercise. No Incentive Stock Option may be exercised by a Participant after the
Expiration Date (as defined in paragraph II.5 below) applicable to that option. Each Option shall
become and be exercisable at such time or times and during such period or periods, in full or in
such installments as may be determined by the Committee at the Option Date.

     5. Option Expiration Date. The “Expiration Date” with respect to an Incentive Stock
Option or any portion thereof awarded to a Participant under the 1999 Plan means the earliest of:

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	 	(a)  	the date that is 10 years after the date on which the Incentive
Stock Option is awarded;
	 
	 	(b)  	the date established by the Committee at the time of the award;
	 
	 	(c)  	the date that is one year after the Participant’s employment
with the Company and all Related Companies is terminated because of death or
permanent and total disability; as defined in Code Section 22(e)(3); or
	 
	 	(d)  	the date that is three months after the date the Participant’s
employment with the Company and all Related Companies is terminated for reasons
other than death or permanent and total disability.

III. NON-QUALIFIED STOCK OPTIONS

     1. Definition. The award of a Non-Qualified Stock Option under the 1999 Plan entitles
the Participant to purchase shares of Stock at a price fixed at the time the option is awarded,
subject to the following terms of this Part III.

     2. Eligibility. The Committee shall designate the Participants to whom Non-Qualified
Stock Options are to be awarded under the 1999 Plan and shall determine the number of option shares
to be offered to each of them. No Non-employee Director shall be eligible to receive an award of a
Non-Qualified Stock Option except to the extent granted pursuant to the formula set forth in
Paragraph I.5(b) above.

     3. Price. The purchase price of a share of Stock under each Non-Qualified Stock
Option shall be determined by the Committee; provided, however, that in no event shall such price
be less than the greater of (a) 100% of the Fair Market Value of a share of Stock as of the Option
Date or (b) the par value of a share of such Stock on such date. To the extent provided by the
Committee, the full purchase price of each share of Stock purchased upon the exercise of any
Non-Qualified Stock Option shall be paid in cash or by tendering, by either actual delivery of
shares or by attestation, shares of Stock (valued at Fair Market Value as of the day of exercise),
or in any combination thereof, at the time of such exercise. Shares of Stock acquired pursuant to
the exercise of a Non-Qualified Stock Option shall be subject to such conditions, restrictions and
contingencies as the Committee may establish in the award agreement. If the Company shall have a
class of its Stock registered pursuant to Section 12 of the Securities Exchange Act of 1934, as
amended, an option holder may also make payment at the time of exercise of a Non-Qualified Stock
Option by delivering to the Company a properly executed exercise notice together with irrevocable
instructions to a broker approved by the Company, that upon such broker’s sale of shares of Stock
with respect to which such option is exercised, it is to deliver promptly to the Company the amount
of sale proceeds necessary to satisfy the option exercise price and any required withholding taxes.

     4. Exercise. No Non-Qualified Stock Option may be exercised by a Participant after
the Expiration Date applicable to that option. Unless otherwise specified herein, each Option
shall become and be exercisable at such time or times and during such period or periods, in full or
in such installments as may be determined by the Committee at the Option Date.

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     5. Option Expiration Date. The “Expiration Date” with respect to a Non-Qualified
Stock Option or any portion thereof awarded to a Participant under the 1999 Plan means the earliest
of:

	 	(a)  	the date established by the Committee at the time of the award or set forth in
paragraph I.5(b), as applicable;
	 
	 	(b)  	the date that is three months after the employee Participant’s employment with
the Company and all Subsidiaries or the Non-employee Director Participant’s service as
a member of the Board is terminated for reasons other than Retirement or death; or
	 
	 	(c)  	the date that is three years after the date the employee Participant’s
employment with the Company and all Subsidiaries or the Non-employee Director
Participant’s service as a member of the Board is terminated by reason of Retirement or
death.

IV. RESTRICTED STOCK

     1. Definition. Restricted Stock awards are grants of Stock to Participants, the
vesting of which is subject to a required period of employment and any other conditions established
by the Committee or by the terms of this 1999 Plan.

     2. Eligibility. The Committee shall designate the Participants to whom Restricted
Stock is to be awarded and the number of shares of Stock that are subject to the award. Restricted
Stock shall be awarded only to key employees of the Company, and no Non-employee Director shall be
eligible to receive an award of Restricted Stock.

     3. Terms and Conditions of Awards. All shares of Restricted Stock awarded to
Participants under the 1999 Plan shall be subject to the following terms and conditions and to such
other terms and conditions, not inconsistent with the 1999 Plan, as shall be prescribed by the
Committee in its sole discretion and as shall be contained in the agreement referred to in
paragraph I.12.

	 	(a)  	Restricted Stock awarded to Participants may not be sold, assigned,
transferred, pledged or otherwise encumbered, except as hereinafter provided, for a
period of ten years or such shorter period as the Committee may determine, but no less
than three years, after the time of the award of such stock (the “Restricted Period”).
Such restrictions shall lapse as to the Restricted Stock in accordance with the time(s)
and number(s) of shares as to which the Restricted Period expires, as set forth in the
Agreement with the Participant. Except for such restrictions, the Participant as owner
of such shares shall have all the rights of a stockholder, including but not limited to
the right to vote such shares and, except as otherwise provided by the Committee, the
right to receive all dividends paid on such shares.
	 
	 	(b)  	The Committee may in its discretion, at any time after the date of the award of
Restricted Stock, adjust the length of the Restricted Period to account for individual
circumstances of a Participant or group of Participants, but in no case shall the
length of the Restricted Period be less than three years.

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	 	(c)  	Except as otherwise determined by the Committee in its sole discretion, an
employee Participant whose employment with the Company and all Subsidiaries terminates
prior to the end of the Restricted Period for any reason shall forfeit all shares of
Restricted Stock remaining subject to any outstanding Restricted Stock award which have
not then vested in accordance with the agreement entered into under paragraph I.12.
	 
	 	(d)  	Each certificate issued in respect of shares of Restricted Stock awarded under
the 1999 Plan shall be registered in the name of the Participant and, at the discretion
of the Committee, each such certificate may be deposited in a bank designated by the
Committee. Each such certificate shall bear the following (or a similar) legend:
	 
	 	   	“The transferability of this certificate and the shares of stock represented hereby
are subject to the terms and conditions (including forfeiture) contained in the
COMSTOCK RESOURCES, INC. 1999 Long-Term Incentive Plan and an agreement entered into
between the registered owner and COMSTOCK RESOURCES, INC. A copy of such plan and
agreement is on file in the office of the Secretary of COMSTOCK RESOURCES, INC.,
5005 LBJ Freeway, Suite 1150, Dallas, Texas 75244 or, if the Company changes its
principal office, at the address of such new principal office.”
	 
	 	(e)  	As the Restricted Period for Restricted Stock expires and such restrictions
lapse, such Restricted Stock shall be held by a Participant (or his or her legal
representative, beneficiary or heir) free of all restrictions imposed by the 1999 Plan
and the Agreement. Such shares shall nevertheless continue to be subject to any
restriction imposed under applicable securities laws.

V. PERFORMANCE UNITS

     1. Definition. Performance Units are awards to Participants who may receive value for
the units at the end of a Performance Period. The number of units earned, and value received for
them, will be contingent on the degree to which the performance measures established at the time of
the initial award are met.

     2. Eligibility. The Committee shall designate the Participants to whom Performance
Units are to be awarded, and the number of units to be the subject of such awards. Performance
Units shall be awarded only to key employees of the Company, and no Non-employee Director shall be
eligible to receive an award of a Performance Unit.

     3. Terms and Conditions of Awards. For each Participant, the Committee will determine
the timing of awards; the number of units awarded; the value of units, which may be stated either
in cash or in shares of Stock; the performance measures used for determining whether the
Performance Units are earned; the performance period during which the performance measures will
apply; the relationship between the level of achievement of the performance measures and the degree
to which Performance Units are earned; whether, during or after the performance period, any
revision to the performance measures or performance period should be made to reflect significant
events or changes that occur during the performance period; and the number of earned Performance
Units that will be paid in cash and/or shares of Stock.

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     4. Payment. The Committee will compare the actual performance to the performance
measures established for the performance period and determine the number of units to be paid and
their value. Payment for units earned shall be wholly in cash, wholly in Stock or in a combination
of the two, in a lump sum or installments, and subject to vesting requirements and such other
conditions as the Committee shall determine. The Committee will determine the number of earned
units to be paid in cash and the number to be paid in Stock. For Performance Units awarded in
shares of Stock, one share of Stock will be paid for each unit earned, or cash will be paid for
each unit earned equal to either (a) the Fair Market Value of a share of Stock at the end of the
Performance Period or (b) the Fair Market Value of a share of Stock averaged for a number of days
determined by the Committee. For Performance Units awarded in cash, the value of each unit earned
will be paid in its initial cash value, or shares of Stock will be distributed based on the cash
value of the units earned divided by (a) the Fair Market Value of a share of Stock at the end of
the Performance Period or (b) the Fair Market Value of a share of Stock averaged for a number of
days determined by the Committee.

     5. Retirement, Death or Termination. A Participant whose employment with the Company
and all Subsidiaries terminates during a performance period because of Retirement or death shall be
entitled to the prorated value of earned Performance Units, issued with respect to that performance
period, at the conclusion of the performance period based on the ratio of the months employed
during the period to the total months of the performance period. If a Participant’s employment
with the Company and all Subsidiaries terminates during a performance period for any reason other
than Retirement or death, the Performance Units issued with respect to that performance period will
be forfeited on the date such Participant’s employment terminates. Notwithstanding the foregoing
provisions of this Part V, if a Participant’s employment with the Company and all Subsidiaries
terminates before the end of the Performance Period with respect to any Performance Units awarded
to him, the Committee may determine that the Participant will be entitled to receive all or any
portion of the units that he or she would otherwise receive, and may accelerate the determination
and payment of the value of such units or make such other adjustments as the Committee, in its sole
discretion, deems desirable.

-11-exv10w18

 

Exhibit 10.18

FIRST AMENDMENT TO

LOAN AGREEMENT

     This First Amendment to Loan Agreement is dated as of December 31, 2004 by and among Comstock
Resources, Inc. (“Lender”) and Bois d’Arc Energy, LLC, Bois d’Arc Properties, LP and Bois d’Arc
Offshore, Ltd. (collectively, the “Borrower”).

     A. The Lender and Borrower are parties to the Loan Agreement dated as of July 16, 2004 (the
“Loan Agreement”).

     B. The parties desire to extend the maturity date set forth in the Loan Agreement.

     In consideration of the mutual covenants and agreements contained herein, the parties hereto
covenant and agree as follow:

     1. Capitalized Terms. Capitalized terms not defined herein shall have the meaning set
forth in the Loan Agreement.

     2. Amendment to Maturity Date. The definition of “Maturity Date” is hereby amended to
read in its entirety as follows:

     “Maturity Date” means (a) April 1, 2006 or (b) such earlier date upon which
(i) the Commitment may be terminated in accordance with the terms hereof or (ii) the CRI
Credit Facility is terminated.

     3. Miscellaneous.

          (a) Loan Documents. This Amendment shall constitute a Loan Document.

          (b) References. Any reference to the Loan Agreement contained in any document,
instrument or agreement executed in connection with the Loan Agreement shall be deemed to be a
reference to the Loan Agreement as modified by this Amendment.

          (c) Counterparts. This Amendment may be executed in any number of counterparts, and
each such counterpart shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same instrument.

          (d) Ratification. Except as expressly modified and superceded by this Amendment, the
terms and provisions of the Loan Agreement are ratified and confirmed and shall continue in full
force and effect and represent the valid, enforceable and collectible obligations of the Borrower.

          (e) Governing Law. This Amendment shall be governed by and shall be construed and
enforced in accordance with the internal laws of the State of Texas, without regard to conflict of
laws principles.

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of
the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	COMSTOCK RESOURCES, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ ROLAND O. BURNS	 	 
	 	 	 	 	 	 	 
	

	 	Name:
	 	 	 	Roland O. Burns	 	 
	

	 	Title:
	 	 	 	Senior Vice President, Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BOIS D’ARC ENERGY, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ WAYNE L. LAUFER	 	 
	 	 	 	 	 	 	 
	

	 	Name:
	 	 	 	Wayne L. Laufer	 	 
	

	 	Title:
	 	 	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BOIS D’ARC PROPERTIES, LP	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	By:
	 	 	 	Bois d’Arc Holdings, LLC,

its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ WAYNE L. LAUFER	 	 
	 	 	 	 	 	 	 
	

	 	Name:
	 	 	 	Wayne L. Laufer	 	 
	

	 	Title:
	 	 	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BOIS D’ARC OFFSHORE, LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	

	 	By:
	 	 	 	Bois d’Arc Oil and Gas Company, LLC, its
general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ WAYNE L. LAUFER	 	 
	 	 	 	 	 	 	 
	

	 	Name:
	 	 	 	Wayne L. Laufer	 	 
	

	 	Title:
	 	 	 	Chief Executive Officer	 	 

-2-

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