Document:

exv10w1

 

Exhibit 10.1

Form of 2008 Time Vested Unit Award

NEWFIELD EXPLORATION COMPANY

RESTRICTED STOCK UNIT AGREEMENT

     THIS RESTRICTED STOCK UNIT AGREEMENT (this “Agreement”) is made as of February 7, 2008 (the
“Date of Grant”) and is by and between Newfield Exploration Company (the “Company”) and
                     (“Employee”).

     1. Grant.

     (a) Restricted Stock Units. Pursuant to the Newfield Exploration Company 2007 Omnibus
Stock Plan (as amended from time to time, the “Plan”), this Agreement evidences the grant by
the Company of an award of                      restricted stock units to Employee subject to the
Forfeiture Restrictions described in Section 2(a) below (the “Restricted Stock Units”).
Each Restricted Stock Unit represents the right to receive one share of Common Stock as of
the date on which the Restricted Stock Unit is payable.

     (b) Plan Incorporated. Employee acknowledges receipt of a copy of the Plan and agrees
that the Restricted Stock Units shall be subject to all of the terms and conditions of the
Plan, which terms and conditions are incorporated herein for all purposes. Capitalized
terms used but not defined in this Agreement shall have the meanings ascribed to such terms
in the Plan.

     (c) No Rights as a Stockholder. Restricted Stock Units are not actual shares of Common
Stock and Employee will have no rights as a stockholder with respect to any Restricted Stock
Units, including no right to vote on matters submitted to stockholders of the Company and no
right to receive any dividends declared or paid on Common Stock. Employee will be a general
and unsecured creditor of the Company and will have no direct or secured claim in any
specific assets of the Company.

     2. Restrictions. Employee hereby accepts the Restricted Stock Units and agrees with
respect thereto as follows:

     (a) Forfeiture Restrictions. Except as otherwise provided in Paragraph X of the Plan,
(i) the Restricted Stock Units may not be sold, assigned, pledged, exchanged, hypothecated
or otherwise transferred or disposed of to the extent then subject to Forfeiture
Restrictions and (ii) if, prior to the fourth year anniversary of the Date of Grant,
Employee’s employment with the Company is terminated for any reason (including as described
in the last sentence of Paragraph XII(b) of the Plan) other than (A) a separation from
service by reason of death or Disability (as defined below) of Employee or (B) a Qualified
Retirement, Employee shall, for no consideration, forfeit to the Company all Restricted
Stock Units to the extent then subject to Forfeiture Restrictions. The prohibition against
transfer and the obligation to forfeit and surrender the Restricted Stock Units to the
Company as provided in this Section 2(a) are herein referred to as “Forfeiture
Restrictions.” Forfeiture Restrictions shall be binding upon and enforceable against any
permitted transferee of the Restricted Stock Units.

 

 

     (b) Death or Disability. If not previously forfeited, Forfeiture Restrictions with
respect to the Restricted Stock Units shall lapse upon a separation from service with the
Company by reason of Employee’s death or Disability.

     (c) Qualified Retirement. Upon Employee’s Qualified Retirement, if not previously
forfeited, Forfeiture Restrictions shall lapse with respect to that number of Restricted
Stock Units equal to (i) the Pro Rata Units minus (ii) the number of Restricted Units with
respect to which the Forfeiture Restrictions have previously lapsed pursuant to Section
2(d).

     (d) Continuous Employment. If not previously forfeited, Forfeiture Restrictions with
respect to the Restricted Stock Units shall lapse on the indicated anniversary of the Date
of Grant in accordance with the following schedule:

	 	 	 	 	 
	 	 	Percentage of Restricted
	 	 	Stock Units Subject to Forfeiture
	 	 	Restrictions as
	 	 	to which Forfeiture Restrictions
	Annual Anniversary of Date of Grant	 	Lapse
	Second
	 	 	331/3	%
	Third
	 	 	50	%
	Fourth
	 	 	100	%

     3. Definitions.

     (a) “Disability” has the meaning set forth in Section 409A(a)(2)(A)(ii) of the Code.

     (b) “Pro Rata Units” means a number of Restricted Stock Units equal to the product of
(i) the total number of Restricted Stock Units initially covered by this Agreement
multiplied by (ii) the result of (A) the number of days that have elapsed since the Date of
Grant divided by (B) the number of days from the Date of Grant to the fourth anniversary of
the Date of Grant.

     (c) “Qualified Retirement” means Employee (i) either is (A) at least age 60 and signs a
non-compete agreement (the form of which is attached hereto as Exhibit A) that is effective
until reaching age 62 or (B) is at least age 62, (ii) has at least 10 years of Qualified
Service and (iii) provides the Requisite Notice.

     (d) “Qualified Service” means (i) Employee’s continuous employment with (A) the Company
or (B) a subsidiary of the Company during the time that such subsidiary is, directly or
indirectly, a wholly owned subsidiary of the Company plus (b) any additional service credit
granted to Employee (or a group of employees of which Employee is a member) by the Board.

     (e) “Requisite Notice” means (a) if employee is an officer of the Company, at least six
months prior written notice to the Board or (b) otherwise, at least three months prior
written notice to the chief executive officer of the Company.

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     4. Settlement of Units. Subject to the provisions of Paragraph XII(c) of the Plan,
upon the lapse of Forfeiture Restrictions without forfeiture, the Company will cause a certificate
to be issued to Employee representing the number of shares of Common Stock equal to the number of
outstanding Restricted Stock Units no longer subject to Forfeiture Restrictions.

     5. Community Interest of Spouse. The community interest, if any, of any spouse of
Employee in any of the Restricted Stock Units shall be subject to all of the terms, conditions and
restrictions of this Agreement and the Plan, and shall be forfeited and surrendered to the Company
upon the occurrence of any of the events requiring Employee’s interest in such Restricted Stock
Units to be so forfeited and surrendered pursuant to this Agreement.

     6. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
any successors to the Company and all persons lawfully claiming under Employee.

     7. Entire Agreement. This Agreement and the Plan constitute the entire agreement of
the parties hereto with regard to the subject matter hereof, and contain all the covenants and
agreements between the parties with respect to the Restricted Stock Units. Without limiting the
scope of the preceding sentence, all prior understandings and agreements, if any, among the parties
hereto relating to the subject matter hereof are hereby null and void and of no further force and
effect.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an authorized
officer and Employee has executed this Agreement, all as of the Date of Grant.

	 	 	 	 	 
	 	 	NEWFIELD EXPLORATION COMPANY
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	David A. Trice
	 

	 	 	 	President and Chief Executive Officer
	 
	 	 	 	 
	 	 	 
	 	 	[Employee]

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EXHIBIT A

NON-COMPETE AGREEMENT

     THIS NON-COMPETE AGREEMENT (this “Agreement”) is dated as of [date of Qualified Retirement]
and is by and between Newfield Exploration Company, a Delaware corporation (the “Company”) and
                    , a retiring employee of the Company (“Retiring Employee”).

RECITALS:

     WHEREAS, Retiring Employee has been granted the awards set forth on Annex A hereto (the
“Awards”) by the Company;

     WHEREAS, pursuant to the terms of the agreements governing the Awards (the “Award
Agreements”), Retiring Employee is entitled to certain benefits (the “Retirement Benefits”) if
Retiring Employee’s termination of employment with the Company is by reason of a “Qualified
Retirement” (as defined in each of the Award Agreements); and

     WHEREAS, it is a condition to Retiring Employee being entitled to the Retirement Benefits that
Retiring Employee enter into a Non-Compete Agreement substantially in the form of this Agreement;

     NOW, THEREFORE, in consideration of the premises, the Retirement Benefits to be provided to
Retiring Employee and the other covenants and agreements herein contained, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:

     1. Definitions; Rules of Construction.

     (a) Definitions. The following capitalized terms shall have the meaning given to it below:

     “Affiliate” means, with respect to any specified Person, any other Person that directly, or
indirectly through one or more intermediaries, controls, is controlled by or is under common
control with, such specified Person and, if such specified Person is a natural person, the
immediate family members of such specified Person. “Control” (including the terms “controlled by”
and “under common control with”), with respect to the relationship between or among two or more
Persons, means the possession, directly or indirectly, of the power to direct or cause the
direction of the affairs or management of a Person, whether through the ownership of voting
securities, as trustee or executor, as general partner or manager, by contract or otherwise,
including the ownership, directly or indirectly, of securities having the power to elect a majority
of the board of directors or similar body governing the affairs of such Person.

     “Competing Business” means any business involved in the acquisition or development of, or
exploration for, crude oil or natural gas or any rights in or with respect crude oil or natural gas
within the Covered Area.

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     “Covered Area” means (a) the United States of America and (b) any foreign jurisdiction (i) in
which the Company is operating or (ii) with respect to which the Company is actively considering
for operations, in the case of clause (b) only, as of the date hereof.

     “Person” means any individual, partnership, corporation, limited liability company, trust,
incorporated or unincorporated organization or association or other legal entity of any kind.

     “Term” means the period from the date hereof and the date on which Retiring Employee reaches
65 years of age.

     (b) Rules of Construction. For purposes of this Agreement (i) unless the context otherwise
requires, (A) “or” is not exclusive; (B) words applicable to one gender shall be construed to apply
to each gender; (C) the terms “hereof,” “herein,” “hereby,” “hereto” and derivative or similar
words refer to this entire Agreement and (D) the term “Section” refers to the specified Section of
this Agreement, (ii) the Section and other headings and titles contained in this Agreement are for
reference purposes only and shall not affect in any way the meaning or interpretation of this
Agreement, (iii) a reference to any Person includes such Person’s successors and assigns.

     2. Non-Compete. During the Term, Retiring Employee covenants and agrees with the
Company that Retiring Employee shall not, directly or indirectly, individually, through an
Affiliate or otherwise (including as an officer, director, employee or consultant) own an interest
or engage in, participate with or provide any financial or other support, assistance or advice to
any Competing Business; provided, however, that Retiring Employee may (i) when taken together with
the ownership, directly or indirectly, of all of his Affiliates, own, solely as an investment, up
to 5% of any class of securities of any Person if such securities are listed on any national
securities exchange or traded on the Nasdaq Stock Market so long as Retiring Employee is not a
director, officer, employee of, or analogously employed or engaged by, such Person or any of such
Person’s Affiliates or (ii) own securities issued by the Company.

     3. Specific Performance; Injunctive Relief. Retiring Employee specifically
acknowledges and agrees that the Company, in proving the Retirement Benefits, has relied on the
agreements and covenants of Retiring Employee contained in this Agreement and that the terms of
this Agreement are reasonable and necessary for the protection of the Company. Retiring Employee
specifically acknowledges and agrees that any breach or threatened breach by Retiring Employee of
his or her agreements and covenants contained herein would cause the Company irreparable harm not
compensable solely in damages. Retiring Employee further acknowledges and agrees that it is
essential to the effective enforcement of this Agreement that Company be entitled to the remedies
of specific performance, injunctive relief and similar remedies and Retiring Employee agrees to the
granting of any such remedies upon a breach or threatened breach by Retiring Employee of any of the
terms hereof. The Company also shall be entitled to pursue any other remedies (at law or in
equity) available to it for any breach or threatened breach of this Agreement, including the
recovery of money damages; provided, however, that in no event shall Retiring Employee be liable
for any damages hereunder in excess of 150% of the Retirement Benefits.

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     4. Severability. If any term or other provision of this Agreement is invalid, illegal
or incapable of being enforced by any rule of law or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not affected in any manner
materially adverse to any party. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith
to modify this Agreement so as to effect the original intent of the parties as closely as possible
in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the
extent possible.

     5. Amendment; Modification; Waiver. No amendment or modification of the terms or
provisions of this Agreement shall be binding unless the same shall be in writing and duly executed
by the Company and Retiring Employee, except that any of the terms or provisions of this Agreement
may be waived in writing at any time by the party that is entitled to the benefits of such waived
terms or provisions. No single waiver of any of the provisions of this Agreement shall be deemed
to or shall constitute, absent an express statement otherwise, a continuous waiver of such
provision or a waiver of any other provision hereof (whether or not similar).

     6. Failure or Indulgence Not Waiver; Remedies Cumulative. No failure or delay on the
part of any party hereto in the exercise of any right hereunder shall impair such right or be
construed to be a waiver of, or acquiescence in, any breach of any covenant or agreement herein,
nor shall any single or partial exercise of any such right preclude other or further exercise
thereof or of any other right. All rights and remedies existing under this Agreement are
cumulative with, and not exclusive of, any rights or remedies otherwise available.

     7. No Affect on Retiring Employee’s Obligations. This Agreement shall in no way
affect any other duties or obligations Retiring Employee owes to the Company by contract, law or
otherwise.

     8. Legal Fees. If either party hereto institutes any legal proceedings against the
other for breach of any provision hereof, the losing party shall be liable for the costs and
expenses of the prevailing party, including without limitation its reasonable attorneys’ fees.

     9. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

     10. Governing Law; Consent to Jurisdiction. This Agreement shall be construed in
accordance with and governed by the laws of the State of Texas applicable to agreements made and to
be performed wholly within that jurisdiction.

[Signature page follows.]

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     IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an authorized
officer and Retiring Employee has executed this Agreement, in each case, as of the day and year
first above written.

	 	 	 	 	 
	 	 	NEWFIELD EXPLORATION COMPANY
	 
	 	 	 	 
	 

	 	By:  	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	RETIRING EMPLOYEE
	 
	 	 	 	 
	 	 	 
	 	 	[Retiring Employee]

A-4exv10w2

 

Exhibit 10.2

NEWFIELD EXPLORATION COMPANY

STOCK OPTION AGREEMENT

     THIS STOCK OPTION AGREEMENT (this “Agreement”) is made as of February 7, 2008 (the “Date of
Grant”) and is by and between Newfield Exploration Company, a Delaware corporation (the “Company”),
and David A. Trice (“Employee”).

     1. Grant.

     (a) The Option. Pursuant to the Newfield Exploration Company [2007/ 2000] Omnibus Stock Plan (as amended from time to time, the “Plan”), this Agreement
evidences the grant by the Company of an award of an option (the “Option”) to purchase all
or any part of an aggregate of                     shares of Common Stock (the “Underlying Shares”)
for a purchase price of $48.45 per share (the “Purchase Price”). The Option shall not be
treated as an incentive stock option within the meaning of section 422(b) of the Code.

     (b) Plan Incorporated. Employee acknowledges receipt of a copy of the Plan and agrees
that the Option shall be subject to all of the terms and conditions of the Plan, which terms
and conditions are incorporated herein for all purposes. Capitalized terms used but not
defined in this Agreement shall have the meanings ascribed to such terms in the Plan.

     2. Exercise of Option.

     (a) Continuous Employment. Subject to its earlier expiration or termination, the
Option may be exercised, by written notice to the Company at its principal executive office
addressed to the attention of its chief financial officer (or such other officer or employee
of the Company or third party administrator as the Company may designate from time to time),
at any time and from time to time after the date of grant hereof, but, except as otherwise
provided below, the Option shall not be exercisable for more than a percentage of the
aggregate number of Underlying Shares determined by the number of full years from the Date
of Grant to the date of such exercise, in accordance with the following schedule:

	 	 	 	 	 
	 	 	Percentage of Underlying
	Number of Full Years	 	Shares that may be Purchased
	Less than 1 year
	 	 	0	%
	1 year but less than 2 years
	 	 	331/3	%
	2 years but less than 3 years
	 	 	662/3	%
	3 years or more
	 	 	100	%

     (b) Death or Disability. Subject to the earlier expiration or termination of the
Option, upon Employee’s separation from service with the Company by reason of Employee’s
death or Disability, the Option may be exercised in full by Employee (or Employee’s estate
or the person who acquires this Agreement by will or the laws of descent and distribution or
otherwise by reason of the death of Employee) at any time during the

 

 

period of one year following such separation from service. After the expiration of
such one year period, the Option shall terminate and shall not be exercisable.

     (c) Voluntary Termination or Involuntary Termination for Cause. If Employee
voluntarily terminates his employment with the Company (other than upon a Qualified
Retirement) or if Employee’s employment with the Company is terminated involuntarily for
Cause, then the Option shall terminate immediately and shall not be exercisable. The
Committee may, in its sole discretion, advise Employee in writing, prior to a voluntary
termination of Employee’s employment with the Company, that such termination will be treated
as an involuntary termination other than for Cause that is governed by Section 3(d).

     (d) Other Involuntary Termination. Subject, in all cases, to the earlier expiration or
termination of the Option, if Employee’s employment with the Company terminates
involuntarily other than for Cause, then the Option may be exercised by Employee at any time
during the 90 day period following such termination, or by Employee’s estate (or the person
who acquires this Agreement by will or the laws of descent and distribution or otherwise by
reason of the death of Employee) during a period of one year following Employee’s death if
Employee dies during such 90 day period, but in each case only as to the number of shares
Employee was entitled to purchase hereunder as of the date Employee’s employment so
terminates. After the expiration of such 90 day period (or after the expiration of the one
year period following Employee’s death if Employee dies during such 90 day period), the
Option shall terminate and shall not be exercisable.

     (e) Qualified Retirement. Subject to the earlier expiration or termination of the
Option, if Employee’s employment with the Company terminates as a result of Employee’s
Qualified Retirement, the Option may be exercised in full by Employee (or Employee’s estate
or the person who acquires this Agreement by will or the laws of descent and distribution or
otherwise by reason of the death of Employee) at any time during the five year period
following such retirement. After the expiration of such five year period, the Option shall
terminate and shall not be exercisable.

     3. Term. Notwithstanding anything in this Agreement to the contrary, the Option shall
terminate on, and shall not be exercisable on or after, the ten year anniversary of the Date of
Grant.

     4. Payment of Purchase Price. The Purchase Price shall be paid in full at the time of
exercise (a) in cash, (b) by delivering or constructively tendering to the Company shares of Common
Stock having a Fair Market Value equal to the purchase price (provided such shares used for this
purpose must have been held by Employee for such minimum period of time as may be established from
time to time by the Committee), (c) if the Common Stock is listed or traded on a national
securities market, through a “cashless exercise” in accordance with a policy or program established
by the Company or (d) any combination of the foregoing. No fraction of a share of Common Stock
will be issued by the Company upon exercise of the Option or accepted by the Company in payment of
the purchase price. In lieu thereof, Employee shall provide a cash payment for such amount as is
necessary to effect the issuance and acceptance of only whole shares of Common Stock. Until the
purchase price for Underlying Shares has been paid in full, the holder of such shares shall not be,
or have any of the rights or privileges of, a stockholder of the Company with respect to such shares.

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     5. Definitions.

     (a) “Cause” means Employee has (i) failed to fulfill the duties of his employment
position as prescribed by the Board, the Company’s officers or Company policy, (ii) engaged
in conduct constituting willful misconduct or fraud or (iii) been convicted of any felony,
any crime involving moral turpitude or any crime committed in the course of Employee’s
employment.

     (b) “Disability” has the meaning set forth in Section 409A(a)(2)(A)(ii) of the Code.

     (c) “Qualified Retirement” means (i) Employee’s retirement date is no earlier than
February 15, 2010 and (ii) Employee provides at least six months prior written notice to the
Board.

     6. Tax Withholding. To the extent that the exercise of the Option or the disposition
of Underlying Shares is compensation income to Employee for federal or state income tax purposes,
Employee shall deliver to the Company at the time of such exercise or disposition such amount of
money or shares of Common Stock as the Company may require to meet its obligation under applicable
tax laws or regulations. Upon an exercise of the Option, Employee hereby authorizes the Company,
in the Company’s sole discretion, to satisfy any such withholding requirement out of any cash or
shares of Common Stock distributable to Employee upon such exercise.

     7. Compliance with Securities Laws.

     (a) Registration of Underlying Shares. The Company has registered under the Securities
Act of 1933, as amended (the “Act”), the issuance and sale of Underlying Shares upon
exercise of the Option, and intends to keep such registration effective throughout the
period this Option is exercisable. In the absence of such effective registration or an
available exemption from registration under the Act, the issuance and sale of Underlying
Shares will be delayed until registration of such issuance and sale is effective or an
exemption from registration under the Act is available. The Company intends to use its
reasonable efforts to ensure that no such delay occurs. If an exemption from registration
under the Act is available upon an exercise of the Option, Employee (or the person permitted
to exercise the Option in the event of Employee’s death or incapacity), if requested by the
Company to do so, will execute and deliver to the Company in writing an agreement containing
such provisions as the Company may require to assure compliance with applicable securities
laws.

     (b) Resale of Underlying Shares. Employee shall not sell or otherwise dispose of any
of the Underlying Shares in any manner that would constitute a violation of applicable state
or federal securities laws. The certificates representing the Underlying Shares may bear
such legend or legends as the Committee deems appropriate.

     8. Community Interest of Spouse. The community interest, if any, of any spouse of

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Employee in the Option or any of the Underlying Shares shall be subject to all of the terms,
conditions and restrictions of this Agreement and the Plan.

     9. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
any successors to the Company and all persons lawfully claiming under Employee.

     10. Entire Agreement. This Agreement and the Plan constitute the entire agreement of
the parties hereto with regard to the subject matter hereof, and contain all the covenants and
agreements between the parties with respect to the Option and the Underlying Shares. Without
limiting the scope of the preceding sentence, all prior understandings and agreements, if any,
among the parties hereto relating to the subject matter hereof are hereby null and void and of no
further force and effect.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its officer
thereunto duly authorized, and Employee has executed this Agreement, all as of the Date of Grant.

	 	 	 	 	 
	 	 	NEWFIELD EXPLORATION COMPANY
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Terry W. Rathert
	 

	 	 	 	Sr. Vice President & Chief Financial Officer
	 
	 	 	 	 
	 	 	 	 	 
	 	 	 	 	David A. Trice

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