Document:

EX-10.18

 Exhibit 10.18 

SECOND AMENDMENT AGREEMENT 

This Second Amendment Agreement (this “Amendment”) is entered into this
10th day of December, 2013, by and between (i) SILICON VALLEY BANK, a California corporation (“Bank”), and (ii) BENEFITFOCUS.COM, INC., a South Carolina
corporation (“BenefitFocus.com”), BENEFIT INFORMATICS, INC., a Delaware corporation (“Informatics”) and BENEFITFOCUS, INC., a Delaware corporation (“BenefitFocus”, and together with
BenefitFocus.com and Informatics, individually and collectively, jointly and severally, the “Borrower”). 

RECITALS 

A. Bank and Borrower have entered into that certain Loan and Security Agreement dated as of August 27, 2013 (as amended and as the
same may from time to time be further amended, modified, supplemented or restated, the “Loan Agreement”). 
 B. Bank
has extended credit to Borrower for the purposes permitted in the Loan Agreement. 
 C. Borrower and Bank desire to amend the Loan
Agreement to revise the definition of “Revolving Line” therein. 
 D. Bank has agreed to so amend certain provisions of the
Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below. 

AGREEMENT 

NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows: 
 1.
Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement. 

2. Amendment to Loan Agreement. 

2.1 Section 13 (Definitions). The definition of “Revolving Line” appearing in Section 13.1 is hereby
amended in its entirety and replaced with the following:  
 “Revolving Line” is an aggregate principal amount not to
exceed (i) prior to the occurrence of the Capital Raise, Fifteen Million Dollars ($15,000,000) outstanding at any time, and (ii) from and after the occurrence of the Capital Raise, and upon the earlier to occur of (x) the written
request of Borrower and (y) the first anniversary of the Effective Date, up to Thirty Five Million Dollars ($35,000,000) outstanding at any time (such increased amount being the “Maximum Revolving Line Amount”). 

 3. Limitation of Amendment. 

3.1 The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited
precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may
have in the future under or in connection with any Loan Document. 
 3.2 This Amendment shall be construed in connection with
and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and
effect. 
 4. Capital Raise. Borrower and Bank hereby reaffirm that the Capital Raise has occurred. 

5. Representations and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as
follows: 
 5.1 Immediately after giving effect to this Amendment (a) the representations and warranties contained in the
Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and
(b) no Event of Default has occurred and is continuing; 
 5.2 Borrower has the power and authority to execute and
deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment; 
 5.3 The
organizational documents of Borrower previously delivered to Bank remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 

5.4 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan
Agreement, as amended by this Amendment, have been duly authorized;  
 5.5 The execution and delivery by Borrower of this
Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction
with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;  

 5.6 The execution and delivery by Borrower of this Amendment and the performance by
Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or
public body or authority, or subdivision thereof, binding on either Borrower, except as already has been obtained or made; and 

5.7 This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against
Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting
creditors’ rights. 
 6. No Defenses of Borrower. Borrower hereby acknowledges and agrees that Borrower has no offsets,
defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in
equity, all of them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder. 
 7.
Integration. This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations
between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents. 

8. Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be
deemed to constitute one and the same instrument. 
 9. Effectiveness. This Amendment shall be deemed effective upon the due
execution and delivery to Bank by each party hereto. 
 [Signature page follows.] 

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

 

									
	BENEFITFOCUS.COM, INC.	 		 	BENEFITFOCUS, INC.
					
	By	 	 /s/ Milton A. Alpern
	 		 	By	 	 /s/ Milton A. Alpern

	Name:	 	 Milton A. Alpern
	 		 	Name:	 	 Milton A. Alpern

	Title:	 	 Chief Financial Officer
	 		 	Title:	 	 Chief Financial Officer

		
	BENEFIT INFORMATICS, INC.	 	
					
	By	 	 /s/ Milton A. Alpern
	 		 		 	
	 Name:
 Title:
	 	 Milton A. Alpern

Chief Financial Officer
	 		 		 	
				
	BANK:	 		 		 	
		
	SILICON VALLEY BANK	 	
					
	By	 	 /s/ Andrew J. Kirk
	 		 		 	
	Name:	 	 Andrew J. Kirk
	 		 		 	
	Title:	 	 Vice PresidentEX-10.1

 Exhibit 10.1 

ENERGEN CORPORATION 

STOCK INCENTIVE PLAN 
 (As
Amended and Restated Effective December 11, 2013) 
 The purpose of this Plan is to provide a means whereby Energen
Corporation may, through the use of stock and stock related compensation, attract and retain persons of ability as employees and motivate such employees to exert their best efforts on behalf of Energen Corporation and its subsidiaries. 

1.     Definitions. As used in the Plan, the following terms have meanings indicated: 

(a)    “Adjusted Option Expiration Date” means: 

 

	 	(1)	 in the event of a Qualified Termination due to retirement, the earlier of the Expiration Date or the fifth anniversary of the termination date;

  

	 	(2)	 in the event of a Change in Control Termination or a Qualified Termination not due to retirement, the earlier of the Expiration Date or the third
anniversary of the termination date; 

  

	 	(3)	 in the event of a termination of employment for Cause, immediately upon termination; and 

 

	 	(4)	 in the event of a termination of employment not described in the foregoing clauses, the earlier of the Expiration Date or the ninetieth day
following termination. 

  

	 	(b)	 “Award” means any grant under the Plan of Incentive Stock Options, Nonqualified Stock Options, Restricted Stock, Restricted Stock Units
and/or Performance Shares. 

 (c)    “Award Period” means the 3-year period
(Energen fiscal years) commencing with the first day of the fiscal year in which the applicable Performance Share Award is granted, except as otherwise determined by the Committee at the time of grant and subject to the other provisions of this
Plan. 
 (d)    “Board” means the Board of Directors of Energen. 

(e)    “Cause” means any of the following: 

(1)    The willful and continued failure by a Participant to substantially perform such
Participant’s duties with Energen or a Subsidiary (other than any such failure resulting from such Participant’s incapacity due to physical or mental illness) after a written demand for substantial performance is delivered to the
Participant specifically identifying the manner in which such Participant has not substantially performed such Participant’s duties. 

(2)    The engaging by a Participant in willful, reckless or grossly negligent misconduct which is
demonstrably injurious to Energen or a Subsidiary monetarily or otherwise; or 
 (3)    The conviction of a Participant
of a felony. 

 (f)    “Change in Control” means: the occurrence of any one or more
of the following: 
 (1)    The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13(d)-3 promulgated under the Exchange Act) of 30% or more of either (i) the then outstanding shares of common
stock of Energen (the “Outstanding Common Stock”) or (ii) the combined voting power of the then outstanding voting securities of Energen entitled to vote generally in the election of directors (the “Outstanding Voting
Securities”); provided, however, that for purposes of this subsection (1) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by Energen or any corporation controlled by Energen shall not constitute a
Change in Control; 
 (2)    Individuals who, as of December 1, 2012, constitute the Board of
Directors of Energen (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board of Directors of Energen (the “Board of Directors”); provided, however that any individual becoming a director
subsequent to such date whose election, or nomination for election by Energen’s shareholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were
a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other
actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board of Directors; 

(3)    Consummation of a reorganization, merger or consolidation, or sale or other disposition of all or
substantially all of the assets, of Energen (a “Business Combination”), in each case, unless, following such Business Combination, (i) all or substantially all of the individuals and entities who were the beneficial owners,
respectively, of the Outstanding Common Stock and Outstanding Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and
the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a
corporation which as a result of such transaction owns Energen or all or substantially all of Energen’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to
such Business Combination, of the Outstanding Common Stock and Outstanding Voting Securities, as the case may be, (ii) no Person (excluding any corporation resulting from such Business Combination or any employee benefit plan (or related trust)
of Energen or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 30% or more of, respectively, the then outstanding shares of common stock of the corporation resulting from such Business Combination
or the combined voting power of the then outstanding voting securities of such corporation except to the extent that such ownership existed prior to the Business Combination and (iii) at least a majority of the members of the board of directors
of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board of Directors, providing for such Business Combination; 

  
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 (4)    In addition to the above described Changes in Control,
a Subsidiary Transaction (defined below) will constitute a Change in Control to the extent specified below. A “Subsidiary Transaction” is a transaction that results in securities representing 80% or more of the voting interests in a
Subsidiary or substantially all of a Subsidiary’s assets being transferred to an entity not controlled by or under common control with Energen. 

(i)    A Subsidiary Transaction involving a disposition of Energen’s largest Subsidiary or the
assets of Energen’s largest Subsidiary will constitute a Change in Control if immediately prior to such transaction the Participant was an officer or employee of Energen or Energen’s largest Subsidiary. The largest Subsidiary is determined
by net book value of property, plant and equipment. 
 (ii)    A Subsidiary Transaction involving a
disposition of Energen Resources Corporation or its assets will constitute a Change in Control with respect to each Participant who immediately prior to the transaction was an officer or employee of Energen Resources Corporation. 

(iii)    A Subsidiary Transaction involving a disposition of Alabama Gas Corporation or its assets will
constitute a Change in Control with respect to each Participant who immediately prior to the transaction was an officer or employee of Alabama Gas Corporation. 

(g)    “Change in Control Termination” means termination of a Participant’s employment with
Energen and all Subsidiaries under either of the following circumstances: 
 (1)    an involuntary termination (other
than for Cause) after the occurrence of a Change in Control; or 
 (2)    a voluntary termination for
good reason entitling the Participant to severance compensation under a written change in control severance compensation agreement between Energen and the Participant. 

(h)    “Code” means the Internal Revenue Code of 1986, as amended from time to time. 

(i)    “Committee” means the Officers Review Committee of the Board or such other Committee of
two or more directors as may be determined by the Board. 
 (j)    “Energen” means Energen Corporation and any
successor corporation by merger or other reorganization. 
 (k)    “Employee” means any employee of one or
more of Energen and the Subsidiaries. 
 (l)    “Exchange Act” means the Securities Exchange Act of 1934, as
amended. 
 (m)    “Exercise Date” means the date on which a notice of option exercise is
delivered to Energen pursuant to Section 6.2(c) or a notice of option cancellation is delivered to Energen pursuant to Section 6.2(i). 

  
 3 

 (n)    “Expiration Date” means the last day of the
option period specified at the time of grant pursuant to Section 6.2(a). 
 (o)    “Fair
Market Value” means, with respect to a share of Stock, the closing price of the Stock on the New York Stock Exchange (or such other exchange or system on which the Stock then trades or is quoted) or, if there is no trading of the Stock on the
relevant date, then the closing price on the most recent trading date preceding the relevant date. With respect to other consideration, the term Fair Market Value means fair market value as may be reasonably determined by the Committee; provided
that any valuation subject to Code Section 409A shall be made in accordance with Code Section 409A and the regulations thereunder. 

(p)    “Incentive Stock Options” means options granted under the Plan to purchase Stock which at
the time of grant qualify as “incentive stock options” within the meaning of Section 422 of the Code. 

(q)    “Nonqualified Stock Options” means options granted under the Plan to purchase Stock which
are not Incentive Stock Options. 
 (r)    “Participant” means an Employee who is selected by the Committee to
receive an Award. 
 (s)    “Performance Measures” has the meaning set forth in Section 10. 

(t)    “Performance Share” means the value equivalent of one share of Stock. 

(u)    “Plan” means this Energen Corporation Stock Incentive Plan, as amended from time to time. 

(v)    “Qualified Termination” means termination of a Participant’s employment with Energen
and all Subsidiaries under any one of the following circumstances: 
  

	 	(1)	 A result of Participant’s retirement under the Energen Corporation Retirement Income Plan, as amended from time to time. 
	 

  

	 	(2)	 A result of the Participant’s death or disability. 
	 

  

	 	(3)	 Expressly agreed in writing by Energen and/or a Subsidiary to constitute a Qualified Termination for purposes of this Plan. 
	 

 (w)    “Restricted Award” means an Award of Restricted Stock or
Restricted Stock Units. 
 (x)    “Restricted Stock” means Stock granted to a Participant
under Section 7 with respect to which the applicable Restrictions have not lapsed or been removed. 

(y)    “Restricted Stock Unit” means the right to receive one share of Stock upon the lapse or
removal of the applicable Restrictions. 

  
 4 

 (z)    “Restrictions” means the prohibitions set
forth in Section 7.2(a) against the sale, assignment, transfer, pledge, hypothecation and other encumbering or disposal of Restricted Stock and against the payment of Restricted Stock Units. 

(aa)    “Stock” means the common stock, par value $.01 per share, of Energen as such stock may
be reclassified, converted or exchanged by reorganization, merger or otherwise. 

(bb)    “Subsidiary” means any corporation, the majority of the outstanding voting stock of
which is owned, directly or indirectly by Energen Corporation. 
 (cc)    “Ten Percent
Shareholder” means an individual who, at the time of grant, owns stock possessing more than ten (10) percent of the total combined voting power of all classes of stock of Energen. 

2.    Share Limitations. 

2.1    Shares Subject to the Plan.  Subject to adjustment in accordance with
Section 3, as of April 27, 2011, 3,794,326 shares of Stock were reserved and available for issuance under the Plan for future Awards. (reflecting the original 650,000-share authorization, the 1998 stock split adjustment, an additional
1,500,000 shares authorized at the January 2002 shareholder meeting, the 2005 stock split adjustment and 3,000,000 shares authorized at the April 2011 shareholder meeting; reduced by prior Awards). Shares of Stock allocable to an Award or portion of
an Award that is canceled by forfeiture, expiration or for any other reason (excepting pursuant to a stock appreciation right election under Section 6.2(i)) shall again be available for additional Awards. If any option granted under the Plan
shall be canceled as to any shares of Stock pursuant to Section 6.2(i) (stock appreciation rights), then such shares of Stock shall not be available for the grant of another Award. Shares of Stock not issued as the result of the net exercise of
a stock appreciation right, shares tendered by the Participant or retained by Energen as full or partial payment to Energen for the purchase of an Award or to satisfy tax withholding obligations in connection with an Award, or shares repurchased on
the open market with the proceeds from the payment of an exercise price of an option shall not again be available for issuance under the Plan. 

2.2    Limitations.  Subject to adjustment in accordance with Section 3,
(i) the maximum aggregate number of shares of Stock represented by all Awards granted to any one Participant during any one Energen fiscal year shall not exceed 400,000 calculated assuming maximum payout of the Awards and with each Restricted
Stock Unit and Performance Share representing one share of Stock; (ii) consistent with clause (i), the maximum number of shares of Stock represented by Awards of Stock Options granted to any one Participant during any one Energen fiscal year
shall not exceed 400,000; (iii) the maximum number of shares of Stock represented by all Restricted Stock and Performance Share Awards granted on or after April 27, 2011, shall not exceed 1,500,000; and (iv) the maximum number of
shares of stock represented by Incentive Stock Options granted on or after April 27, 2011 shall not exceed 3,794,326. 

3.    Adjustments in Event of Change in Common Stock.  In the event of any change in the
Stock by reason of any stock dividend, extraordinary cash dividend, recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination or exchange of shares, or rights offering to purchase Stock at a price substantially below
fair market value, or of any similar 

  
 5 

 
change affecting the Stock, the number and kind of shares which thereafter may be available for issuance under the Plan and the terms of outstanding Awards shall be appropriately adjusted
consistent with such change in such manner as the Committee may deem equitable to prevent dilution or enlargement of the rights granted to, or available for, Participants in the Plan. If the adjustment would result in fractional shares with respect
to an Award, then the Committee may make such further adjustment (including, without limitation, the use of consideration other than Stock or rounding to the nearest whole number of shares) as the Committee shall deem appropriate to avoid the
issuance of fractional shares. 
 4.    Administration of the Plan. The Plan shall be
administered by the Committee. No member of the Committee shall be eligible to participate in the Plan while serving as a member of the Committee. Subject to the provisions of the Plan, the Committee shall have the exclusive authority to select the
Employees who are to be Participants in the Plan, to determine the Award to be made to each Participant, and to determine the conditions subject to which Awards will become payable under the Plan. The Committee shall have full power to administer
and interpret the Plan and to adopt such rules and regulations consistent with the terms of the Plan as the Committee deems necessary or advisable in order to carry out the provisions of the Plan. The Committee’s interpretation and construction
of the Plan and of any conditions applicable to Awards shall be conclusive and binding on all persons, including Energen and all Participants. Any action which can be taken, or authority which can be exercised, by the Committee with respect to the
Plan, may also be taken or authorized by the Board. 
 5.    Participation. Participants in the
Plan shall be selected by the Committee from those Employees who, in the judgment of the Committee, have significantly contributed or can be expected to significantly contribute to Energen’s success. 

6.    Options 

6.1    Grant of Options.  Subject to the provisions of the Plan, the Committee may
(a) determine and designate from time to time those Participants to whom options are to be granted and the number of shares of Stock to be optioned to each employee; (b) authorize the granting of Incentive Stock Options, Nonqualified Stock
Options, or combination of Incentive Stock Options and Nonqualified Stock Options; (c) determine the number of shares subject to each option; (d) determine the time or times when each Option shall become exercisable and the duration of the
exercise period; and (e) determine whether and, if applicable, the manner in which each option shall contain stock appreciation rights; provided, however, that (i) no Incentive Stock Option shall be granted after the expiration of ten
years from the ISO Effective Date as defined in Section 14 and (ii) the aggregate Fair Market Value (determined as of the date the option is granted) of the Stock with respect to which Incentive Stock Options are exercisable for the first
time by any employee during any calendar year (under all plans of Energen and its Subsidiaries) shall not exceed $100,000. 

  
 6 

 6.2    Terms and Conditions of
Options.  Each option granted under the Plan shall be evidenced by a written agreement. Such agreement shall be subject to the following express terms and conditions and to such other terms and conditions as the Committee may deem
appropriate: 
 (a)    Option Period.  Each option agreement shall specify the period
for which the option thereunder is granted and shall provide that the option shall expire at the end of such period. The Committee may extend such period provided that, in the case of an Incentive Stock Option, such extensions shall not in any way
disqualify the option as an Incentive Stock Option. In no case shall such period for an Incentive Stock Option, including any such extensions, exceed ten years from the date of grant, provided, however that, in the case of an Incentive Stock Option
granted to a Ten Percent Shareholder, such period, including extensions, shall not exceed five years from the date of grant. 

(b)    Option Price, No Repricing.  The option price per share shall be determined by
the Committee at the time any option is granted, and shall be not less than (i) the Fair Market Value, or (ii) in the case of an Incentive Stock Option granted to a Ten Percent Shareholder, 110 percent of the Fair Market Value, (but in no
event less than the par value) of one share of Stock on the date the option is granted, as determined by the Committee. Except as otherwise permitted by Section 3, the terms of outstanding Awards may not be amended to reduce the exercise price
of outstanding options or stock appreciation rights or cancel outstanding options or stock appreciation rights in exchange for cash, other awards or options with an exercise price that is less than the exercise price of the original options or stock
appreciation rights without shareholder approval. 
 (c)    Exercise of Option.  No
part of any option may be exercised until the optionee shall have remained in the employ of Energen or of a Subsidiary for such period, if any, as the Committee may specify in the option agreement, and the option agreement may provide for
exercisability in installments. The Committee shall have full authority to accelerate for any reason it deems appropriate the vesting schedule of all or any part of any option issued under the Plan. Each option shall be exercisable in whole or part
on such date or dates and during such period and for such number of shares as shall be set forth in the applicable option agreement. An optionee electing to exercise an option shall give written notice to Energen of such election and of the number
of shares the optionee has elected to purchase and shall at the time of exercise tender the full purchase price of the shares the optionee has elected to purchase plus any required withholding taxes in accordance with Sections 6.2(d) and 9. 

(d)    Payment of Purchase Price upon Exercise.  The purchase price of the shares as to
which an option shall be exercised shall be paid to Energen at the time of exercise (i) in cash, (ii) in Stock already owned by the optionee having a total Fair Market Value equal to the purchase price and not subject to any lien,
encumbrance or restriction on transfer other than pursuant to federal or state securities laws, (iii) by election to have Energen withhold (from the Stock to be delivered to the optionee upon such exercise) shares of Stock having a Fair Market
Value equal to the purchase price or (iv) by any combination of such consideration having a total Fair Market Value equal to the purchase price; provided that the use of consideration described in clauses (ii), (iii) and (iv) shall be
subject to approval by the Committee. In addition the Committee in its discretion may accept such other consideration or combination of consideration as the Committee shall deem to be appropriate and to have a total Fair Market Value equal to the
purchase price. In each case, Fair Market Value shall be determined as of the Exercise Date. 

  
 7 

 (e)    Exercise in the Event of Termination of Employment. 

 

	 	(1)	 Cause.  If an optionee’s employment by Energen and all Subsidiaries shall terminate for Cause, then all options held by the
terminated Employee shall immediately expire. 

  

	 	(2)	 Qualified Termination.  In the event of a Qualified Termination, then all options held by the optionee with a grant date at least
ten months prior to the date of termination shall be immediately and fully vested and options with a grant date less than ten months prior to the date of termination shall immediately expire. 

 

	 	(3)	 Change in Control Termination.  In the event of a Change in Control Termination, all options held by the optionee which were
granted prior to the Change in Control shall be immediately and fully vested. 

  

	 	(4)	 Other Termination.  In the event that an optionee’s employment by Energen and all Subsidiaries terminates for reason other
than Cause, Qualified Termination or Change in Control Termination, then all of the optionee’s unvested options shall immediately expire. 

  

	 	(5)	 Adjusted Option Expiration Date.  Following a termination of employment any vested options held by the terminated employee will
expire on the applicable Adjusted Option Expiration Date. 

  

	 	(6)	 Committee Authority.  The foregoing provisions of this Section 6.2(e) notwithstanding, the Committee shall have full
authority to accelerate the vesting schedule of all or any part of any option issued under the Plan and held by an employee who plans to terminate his or her employment, such that a terminated employee, his heirs or personal representatives may
exercise (at such time or times on or prior to the applicable Expiration Dates as may be specified by the Committee) any part or all of any unvested option under the Plan held by such employee at the date of his or her termination of employment.
Furthermore, the Committee may at the time of grant provide for different or supplemental terms and conditions with respect to termination of employment and any such terms and conditions expressly provided in the written option agreement shall be
controlling with respect to that option. 

  

	 	(7)	 Options Granted Prior to January 31, 2012.  The other provisions of this Section 6.2(e) notwithstanding, the
provisions of Section 6.2(e) of the Energen Corporation Stock Incentive Plan as Amended effective April 27, 2011, continue to control the manner in which options granted prior to January 31, 2012, will be treated upon a termination of
employment. 

 (f)    Nontransferability. Except as may otherwise be
provided in this Section 6.2(f), no option granted under the Plan shall be transferable other than by will or by the laws of descent and distribution and, during the lifetime of the optionee, an option shall be exercisable only by the optionee.
The foregoing notwithstanding, the optionee may transfer Nonqualified Stock Options to (i) the optionee’s spouse or natural, adopted or step-children or grandchildren (including the optionee, “Immediate Family Members”),
(ii) a trust for the benefit of one or more of the Immediate Family Members, (iii) a family charitable trust established by one or more of the Immediate Family 

  
 8 

 Members, or (iv) a partnership in which the only partners are (and, except as may be
otherwise agreed by the Committee, will remain during the option period) one or more of the Immediate Family Members. Any options so transferred shall not be further transferable except in accordance with the terms of this Plan, shall remain subject
to all terms and conditions of the Plan and the applicable option agreement, and may be exercised by the transferee only to the extent that the optionee would have been entitled to exercise the option had the option not been transferred. 

(g)    Investment Representation.  To the extent reasonably necessary to assure
compliance with all applicable securities laws, upon demand by Energen for such a representation, the optionee shall deliver to Energen at the time of any exercise of an option or portion thereof or settlement of stock appreciation rights a written
representation that the shares to be acquired upon such exercise are to be acquired for investment and not for resale or with a view to the distribution thereof. Upon such demand, delivery of such representation prior to the delivery of any shares
issued upon exercise of an option and prior to the expiration of the option period shall be a condition precedent to the right of the optionee or such other person to purchase any shares. 

(h)    Incentive Stock Options.  Each option agreement which provides for the grant of
an Incentive Stock Option to a participant shall contain such terms and provisions as the Committee may determine to be necessary or desirable in order to qualify such option as an “incentive stock option” within the meaning of
Section 422 of the Code, or any amendment thereof or substitute therefor. As provided in Section 6.1, no Incentive Stock Option shall be granted after the expiration of ten years from the ISO Effective Date as defined in Section 14.
Energen, in its discretion, may retain possession of any certificates for Stock delivered in connection with the exercise of an Incentive Stock Option or appropriately legend such certificates during the period that a disposition of such Stock would
disqualify the exercised option from treatment as an incentive stock option under Section 422 of the Code (a “422 Option”). Subject to the other provisions of the Plan, Energen shall cooperate with the optionee should the optionee
desire to make a disqualifying disposition. Any Incentive Stock Option which is disqualified from treatment as a 422 Option for whatever reason, shall automatically become a Nonqualified Stock Option. No party has any obligation or responsibility to
maintain an Incentive Stock Option’s status as a 422 Option. The optionee shall, however, immediately notify Energen of any disposition of Stock which would cause an Incentive Stock Option to be disqualified as a 422 Option. 

(i)    Stock Appreciation Right.  Each option agreement may provide that the optionee
may from time to time elect, by written notice to Energen, to cancel all or any portion of the option then subject to exercise, in which event Energen’s obligation in respect of such option shall be discharged by payment to the optionee of an
amount in cash equal to the excess, if any, of the Fair Market Value as of the Exercise Date of the shares subject to the option or the portion thereof so canceled over the aggregate purchase price for such shares as set forth in the option
agreement or, if mutually agreed by the Committee and the optionee, (i) the issuance or transfer to the optionee of shares of Stock with a Fair Market Value as of the Exercise Date equal to any such excess, or (ii) a combination of cash
and shares of Stock with a combined value as of the Exercise Date equal to any such excess. 

(j)    No Rights as Shareholder.  No optionee shall have any rights as a shareholder
with respect to any shares subject to the optionee’s option prior to the date of issuance to the optionee of a certificate or certificates for such shares. 

(k)    Issuance of Shares.  Subject to Section 6.2(h), as soon as reasonably
practicable after receipt of an exercise notice and full payment, Energen shall issue to the optionee the appropriate number of shares of Stock. 

  
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 7.    Restricted Stock and Restricted Stock Units (Restricted Awards)

 7.1    Grant of Restricted Awards. The Committee may make grants of Restricted Stock and/or
Restricted Stock Units to Participants. Each Restricted Award shall be evidenced by a written agreement setting forth the number of shares of Restricted Stock or number of Restricted Stock Units granted and the terms and conditions to which the
Restricted Award is subject. Restricted Awards may be granted by the Committee in its discretion with or without cash consideration. 

7.2     Terms and Conditions of Restricted Stock. 

 

	 	(a)	Restrictions.  

  

	 	(1)	Restricted Stock. No shares of Restricted Stock may be sold, assigned, transferred, pledged, hypothecated, or otherwise encumbered or disposed of until the Restrictions on such shares have lapsed or been removed.
	 

  

	 	(2)	 Restricted Stock Units. Restricted Stock Units will not be payable until the Restrictions on payment of such Restricted Stock Units have
lapsed or been removed. Upon the lapse or removal of Restrictions on Restricted Stock Units the Restricted Stock Units shall be settled by delivering to the Participant the number of shares of Stock equal to the number of Restricted Stock Units
being settled. 
	 

 (b)    Lapse.  The Committee shall establish as
to each Restricted Award the terms and conditions upon which the Restrictions shall lapse, which terms and conditions may include, without limitation, a required period of service, Performance Measures, or any other individual or corporate
performance conditions. 
 (c)    Termination of Employment.  In the event of a
Qualified Termination, then all Restrictions on the Participant’s outstanding Restricted Awards with a grant date at least ten months prior to the date of termination shall immediately lapse and Restricted Awards with a grant date less than ten
months prior to the date of termination shall be forfeited and returned to Energen. In the event of a Change in Control Termination, all Restrictions on the Participant’s outstanding Restricted Awards shall immediately lapse. Should a
Participant’s employment with Energen and all Subsidiaries terminate for any reason other than a Qualified Termination or a Change in Control Termination, all Restricted Awards which remain subject to Restrictions, shall be forfeited and
returned to Energen. The foregoing notwithstanding, the Committee may at the time of grant provide for different or supplemental terms and conditions with respect to termination of employment and any such terms and conditions expressly provided in
the written Restricted Award agreement shall be controlling with respect to that Restricted Award. NOTE: early lapse of Restrictions on Restricted Stock Units may have Section 409A implications; see Section 17. 

  
 10 

 (d)    Lapse at Discretion of
Committee.  The Committee may at any time, in its sole discretion, accelerate the time at which any or all Restrictions on a Restricted Award will lapse or remove any and all such Restrictions; provided that the Committee may not
accelerate the lapse of or remove Restrictions which require the attainment of a Performance Measure except as may be permitted by the performance-based exception to Section 162(m) of the Code. 

(e)    Rights with respect to Restricted Stock.  Upon the acceptance by a Participant of
an Award of Restricted Stock, such Participant shall, subject to the Restrictions, have all the rights of a shareholder with respect to such shares of Restricted Stock, including, but not limited to, the right to vote such shares of Restricted Stock
and the right to receive all dividends and other distributions paid thereon. Certificates representing Restricted Stock may be held by Energen until the restrictions lapse and shall bear such restrictive legends as Energen shall deem appropriate.

 (f)    No shareholder rights with respect to Restricted Units.  A Participant shall
have no rights of a shareholder, including voting, dividend or other distribution rights, with respect to Restricted Stock Units prior to the date they are settled in shares of Stock. 

(g)    No Section 83(b) Election.  Unless otherwise expressly agreed in writing by
Energen, a Participant shall not make an election under Section 83(b) of the Code with respect to a Restricted Stock Award and upon the making of any such election, all shares of Restricted Stock subject to the election shall be forfeited and
returned to Energen. 
 8.    Performance Shares 

8.1    Grant of Performance Shares 

(a)  The Committee may from time to time select employees to receive Performance Shares under the Plan. An Employee
may be granted more than one Performance Share Award under the Plan. 
 (b)  A Performance Share Award shall not
entitle a Participant to receive any dividends or dividend equivalents on Performance Shares; no Participant shall be entitled to exercise any voting or other rights of a shareholder with respect to any Performance Share Award under the Plan; and no
Participant shall have any interest in or rights to receive any shares of Stock prior to the time when the Committee authorizes payment of Performance Shares pursuant to Section 8.2. 

(c)  Payment of a Performance Share Award to any Participant shall be made in accordance with Section 8.2 and
shall be subject to such conditions for payment as the Committee may prescribe at the time the Performance Share Award is made. The Committee may prescribe conditions such that payment of a Performance Share Award may be made with respect to a
number of shares of Stock greater than the number of Performance Shares awarded. The Committee may prescribe different conditions for different Participants. 

(d)  Each Performance Share Award shall be made in writing and shall set forth or otherwise reference the terms and
conditions set by the Committee for payment of such Performance Share Award. 

  
 11 

 8.2    Payment of Performance Share Awards 

Each Participant granted a Performance Share Award shall be entitled to payment on account thereof as of the close of the
applicable Award Period, but only if the Committee has determined that the conditions for payment of the Award set by the Committee have been satisfied. Payment of Awards shall be made by Energen promptly following the determination by the Committee
that payment has been earned and by March 15 of the year following the year in which the Award is earned. Payment shall be made in the form of shares of Stock. 

8.3    Termination of Employment 

Except in the case of a Qualified Termination or a Change in Control Termination, if, prior to the close of the Award Period
with respect to a Performance Share Award, a Participant’s employment with Energen and all Subsidiaries terminates, then any unpaid portion of such Participant’s Performance Share Award shall be forfeited. 

In the case of a Qualified Termination, the Participant shall remain entitled to payout of any outstanding Performance Share
Awards with a grant date at least ten months prior to the date of termination (subject to the reduction described below) at the end of the applicable Award Period in accordance with the terms of this Plan including without limitation applicable
performance conditions. Each of such outstanding Performance Share Awards shall be reduced to equal the number of Performance Shares originally granted multiplied by a fraction the numerator of which is the number of months from the grant date to
the termination date and the denominator of which is the number of months in the applicable Award Period. 
 In the event
of a Change in Control Termination, a Participant shall within thirty days following termination receive payment of all outstanding Performance Share Awards measured at target performance. 

8.4    Consulting, Non-Compete and Confidentiality 

A Participant’s entitlement, if any, to payout of Performance Share Awards subsequent to termination of employment with
Energen and all Subsidiaries shall continue so long as the Participant is in compliance with the following requirements. Failure to comply shall result in forfeiture of all then outstanding Performance Share Awards. 

(a)    Consulting Services. For a period of three years following the termination of the
Participant’s employment (“Date of Termination”), Participant will fully assist and cooperate with Energen, the Subsidiaries and their representatives (including outside auditors, counsel and consultants) with respect to any matters
with which the Participant was involved during the course of employment, including being available upon reasonable notice for interviews, consultation, and 

  
 12 

 
litigation preparation. Except as otherwise agreed by Participant, Participant’s obligation under this Section 8.4(a) shall not exceed 80 hours during the first year and 20 hours during
each of the following two years. Such services shall be provided upon request of Energen and the Subsidiaries but scheduled to accommodate Participant’s reasonable scheduling requirements. Participant shall receive no additional fee for such
services but shall be reimbursed all reasonable out-of-pocket expenses. 
 (b)    Non-Compete.
For a period of twelve months following the Date of Termination, unless otherwise expressly approved in writing by Energen, the Participant shall not Compete, (as defined below) or assist others in Competing with Energen and the Subsidiaries. For
purposes of this Agreement, “Compete” means (i) solicit in competition with Alabama Gas Corporation (“Alagasco”) any person or entity which was a customer of Alagasco at the Date of Termination; (ii) offer to acquire
any local gas distribution system in the State of Alabama; or (iii) offer to acquire any oil or gas mineral interest (A) within an oil or gas unit for which Energen Resources Corporation is the operator of record or (B) within an oil
or gas unit contiguous to an oil or gas unit for which Energen Resources Corporation is the operator of record. Employment by, or an investment of less than one percent of equity capital in, a person or entity which Competes with Energen or the
Subsidiaries does not constitute Competition by Participant so long as Participant does not directly participate in, assist or advise with respect to such Competition. 

(c)    Confidentiality. Participant agrees that at all times following the Date of Termination,
Participant will not, without the prior written consent of Energen, disclose to any person, firm or corporation any confidential information of Energen or the Subsidiaries which is now known to Participant or which hereafter may become known to
Participant as a result of Participant’s employment, unless such disclosure is required under the terms of a valid and effective subpoena or order issued by a court or governmental body; provided, however, that the foregoing shall not apply to
confidential information which becomes publicly disseminated by means other than a breach of this provision. 
  

	 	8.5	No Assignment of Interest 

 Except as provided in Section 6.2(f),
the interest of any person in the Plan shall not be assignable, either by voluntary assignment or by operation of law, and any assignment of such interest, whether voluntary or by operation of law, shall render the Award void. Amounts payable under
the Plan shall be transferable only by will or by the laws of descent and distribution. 
 9. Withholding. Each
Participant shall, no later than the date as of which the value of an Award first becomes includable in the gross income of the Participant for Federal, state or local income tax purposes, pay to Energen and Subsidiaries, or make arrangements
satisfactory to the Committee, in its sole discretion, regarding payment of any Federal, state, or local taxes of any kind required by law to be withheld with respect to the Award together with any Federal (including FICA and FUTA), state, or local
employment taxes required to be withheld. The obligations of Energen under the Plan shall be conditional on such payment or arrangements. Energen and, where applicable, its Subsidiaries shall, to the extent permitted by law, have the right to deduct
any such taxes owed hereunder by a Participant from any payment of any kind otherwise due to said Participant. The Committee may permit Participants to elect to satisfy their Federal, and where 

  
 13 

 
applicable, state and local tax withholding obligations with respect to all Awards by the reduction, in an amount necessary to pay all said withholding tax obligations, of the number of shares of
Stock or amount of cash otherwise issuable or payable to said Participants in respect of an Award. 

10.    Performance Measures. At its discretion, the Committee may make the Awards subject to the
attainment of one or more Performance Measures designed to qualify for the performance-based exceptions from Section 162(m) of the Code. Unless and until Energen’s shareholders approve a change in the Performance Measures set forth in this
Section 10, the Performance Measures to be used for purposes of such Awards shall be chosen from among the following alternatives, as measured with respect to Energen and/or any one or more of the Subsidiaries, with or without comparison to a
peer group: 
  

	 	(a)	return on shareholder’s equity; 

  

	 	(b)	return on assets; 

  

	 	(c)	net income; 

  

	 	(d)	earnings per common share; 

  

	 	(e)	total shareholder return; 

  

	 	(f)	oil and/or gas reserve additions; 

  

	 	(g)	utility customer number, volume and/or revenue growth; and 

  

	 	(h)	 such other criteria as may be established by the Committee in writing and which meets the requirements of the performance-based exception to
Section 162(m) of the Code. 

 In the event that the performance-based exception to Section 162(m) of the Code
or its successor is amended such that the performance-based exception permits the employer to alter the governing performance measures without obtaining shareholder approval of such changes, the Committee shall have discretion to make such changes
without obtaining shareholder approval 
 11.    No Rights to Continued Employment. The Plan and
any Award granted under the Plan shall not confer upon any Participant any right with respect to continuance of employment by Energen or any Subsidiary or any right to further Awards under the Plan, nor shall they interfere in any way with the right
of Energen or any Subsidiary by which a Participant is employed to terminate the Participant’s employment at any time. 

12.    Compliance with Other Laws and Regulations. The Plan, the grant and fulfillment of Awards
thereunder, and the obligations of Energen to sell, issue, release and/or deliver shares of Stock shall be subject to all applicable federal and state laws, rules, and regulations and to such approvals by any government or regulatory agency as may
be required. Energen shall not be required to issue or deliver any certificates for shares of Stock prior to (a) the listing of such shares 

  
 14 

 
on any stock exchange on which the Stock may then be listed and (b) the completion of any registration or qualification of such shares under any federal or state law, or any ruling or
regulation of any government body which Energen shall, in its sole discretion, determine to be necessary or advisable. 

13.    Amendment and Discontinuance. The Board may from time to time amend, suspend or discontinue
the Plan. Subject to Section 17, without the written consent of a Participant, no amendment or suspension of the Plan shall alter or impair any Award previously granted to a Participant under the Plan. 

14.    Effective Date of the Plan. The original effective date of the Plan was November 25,
1997, the date of its adoption by the Board, subject to approval by the shareholders of Energen holding not less than a majority of the shares present and voting at its January 1998 Annual Meeting. From time to time the Board has made amendments to
the Plan that require shareholder approval for effectiveness and the shareholders of Energen have approved such amendments, each of which is deemed to be a re-adoption by the Board and re-approval by the shareholders of the Plan for the purposes of
Code Section 422(b)(2). The “ISO Effective Date” is the earlier of the dates of such re-adoption and re-approval of the most recent shareholder approved Plan amendment or restatement. 

15.    Name. The Plan shall be known as the “Energen Corporation Stock Incentive Plan.”

 16.    1997 Deferred Compensation Plan. If and to the extent permitted under the Energen
Corporation 1997 Deferred Compensation Plan (the “Deferred Compensation Plan”), a Participant may elect, pursuant to the Deferred Compensation Plan, to defer receipt of part or all of any shares of Stock or other consideration deliverable
under an Award and upon such deferral shall have no further right with respect to such deferred Award other than as provided under the Deferred Compensation Plan. In the event of such a deferral election, certificates for such shares of Stock as
would have otherwise been issued under the Plan but for the deferral election, may at the discretion of Energen be delivered to the Trustee under the Deferred Compensation Plan and registered in the name of the Trustee or such other person as the
Trustee may direct. Regardless of whether such deferred shares of Stock are issued to the Trustee, they shall constitute “issued” shares for purposes of the Plan’s maximum number of shares limitation set forth in Section 2. 

17.    Effect of Code Section 409A. Payments and benefits under this Plan are intended to be
exempt from the requirements under Code section 409A (“Code Section 409A”) and all provisions of the Plan shall be interpreted in accordance with the applicable exemptions; there are, however, potential circumstances under which Plan
payments and benefits may not be exempt from Code Section 409A. To the extent any payment or benefit is subject to Code Section 409A, the Plan shall be interpreted in accordance with Code Section 409A and Department of Treasury
regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or other guidance that may be issued after the date hereof. Notwithstanding any provision of the Plan to the contrary, in the event that
Energen determines that any payments or benefits may or do not comply with Code Section 409A, Energen may amend the Plan (without Participant consent) or take any other actions that Energen determines are necessary or appropriate to
(i) exempt the payments or benefits hereunder from the application of Code Section 409A or preserve the intended tax treatment of the payments and benefits provided hereunder, or (ii) comply with the requirements of Code
Section 409A. Without limiting the generality of the foregoing, if and to the extent that any payment or benefit under this Plan is determined by Energen to constitute “nonqualified deferred

  
 15 

 
compensation” subject to Code Section 409A, this Plan shall be administered accordingly, and any such payment provided to an employee who is a “specified employee” (within the
meaning of Code Section 409A and as determined pursuant to procedures established by Energen) must be delayed for six months from the date of employment termination to comply with section 409A(a)(2)(B)(i) of the Code. Energen shall set aside
those payments or benefits that would have been made but for payment delay required by the preceding sentence, and such amounts will be paid at the end of the delay. Notwithstanding the foregoing, neither Energen nor the Committee shall have any
liability to any person in the event Code Section 409A applies to any Award in a manner that results in adverse tax consequences for a Participant. 
  

 

  
 16

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