Document:

QuickLinks
 -- Click here to rapidly navigate through this document

EXHIBIT 10.8  

 
 

ABRAXAS ENERGY PARTNERS, L.P.
  LONG-TERM INCENTIVE PLAN
  OPTION AGREEMENT    
    

        This Option Agreement ("Option Agreement") is made and entered into effective as
of                        , 2007 (the
"Grant Date") by and between ABRAXAS ENERGY PARTNERS, L.P., a Delaware limited partnership (the
"Partnership"), and                        ("Participant"). 

        WHEREAS, the Partnership considers it to be in its best interest that Participant be given an inducement to acquire a proprietary interest
in the Partnership and an added incentive to advance the interests of the Partnership; and 

        WHEREAS, the Partnership desires to accomplish such objectives by affording Participant an option to purchase Units pursuant to the
Abraxas Energy Partners, L.P. Long-Term Incentive Plan, which is incorporated by reference herein (the "Plan"). 

        NOW, THEREFORE, in consideration of the mutual agreements hereinafter set forth, the parties hereby agree as follows: 

        1.    Defined Terms.    Unless otherwise defined herein, capitalized
terms used in this Option Agreement shall have the meaning given such terms in the Plan. 

        2.    Grant of Option.    The Partnership hereby grants to Participant
an option (the "Option") to purchase all or any part of an aggregate
of                        Units, under and subject to the terms and conditions of this
Option Agreement and the Plan. 

        3.    Purchase Price.    The purchase price for each Unit to be
purchased hereunder shall be $                        (the "Exercise Price"), which
has been determined to be no less than the Fair Market Value of a Unit on
the Grant Date. 

        4.    Vesting and Option Period.    Participant may exercise the
Option in whole or in part. Provided that Participant remains in continuous service with the Partnership, Company, or any Affiliate thereof from the Grant Date through the relevant vesting date, the
Option shall become vested and exercisable with respect to 25% of the covered Units on the first (1st) anniversary of the Grant Date, with respect to an additional 25% of the covered
Units on the second (2nd) anniversary of the Grant Date, with respect to an additional 25% of the covered Units on the third (3rd) anniversary of the Grant Date, and with
respect to the final 25% of the covered Units on the fourth (4th) anniversary of the Grant Date. Prior to the date of vesting, no portion of the Option shall be exercisable unless its
exercisability is accelerated as provided in the Plan or approved by the Committee in its sole discretion. Notwithstanding the foregoing, all Options not previously vested, will vest immediately prior
to the effective date of, and contingent upon, a Change of Control. Except as provided otherwise in this Option Agreement or the Plan, the Option, to the extent not theretofore exercised, shall
terminate on the expiration of ten (10) years from the Grant Date. 

        5.    Exercise Period; Method of Exercise; Payment.    

        (a)   To
the extent that the Option has vested, the vested portion of such Option must be exercised on or prior to the later to occur of the following dates:
(i) 70 days from the date of vesting and (ii) December 31st of the year in which vesting occurs, but in no event following the expiration of the term of the
Option as set forth in Section 4 of this Option Agreement. Any vested portion of any Option not exercised within the period described in this  Section 5(a)
 will terminate and no longer be exercisable, and the Units covered by such forfeited portion of the Option will be available for
issuance of Awards under the Plan. 

        (b)   The
Option shall be exercised by written notice to the Partnership, in substantially the form attached hereto as  Appendix A or such other form as may be approved from time to time by the Committee,
accompanied by payment of the aggregate Exercise Price for
the Units to be 

 

purchased
in accordance with the terms of this Option Agreement and any required tax withholding amount as may be determined in the discretion of the Committee. 

        (c)   At
the time the Option is exercised, payment of the aggregate Exercise Price for the Units to be purchased shall be made to the Partnership (i) in cash (including
check, bank draft or money order), (ii) by transfer from the Participant to the Partnership of Units (other than Units that the Committee determines by rule may not be used to exercise this
option) that the Participant has held for more than six (6) months with a then current aggregate Fair Market Value equal to the aggregate Exercise Price for the portion of this Option being
exercised, (iii) by the Partnership's retaining a number of Units deliverable upon exercise of this Option whose aggregate Fair Market Value is equal to the aggregate Exercise Price to be paid
in connection with such exercise; or (iv) to the extent permissible under applicable law, delivery to the Partnership of: (A) a properly executed exercise notice, (B) irrevocable
instructions to a broker to sell a sufficient number of the Units being exercised to cover the aggregate Exercise Price and to promptly deliver to the Partnership (on the same day that the Units
issuable upon exercise are delivered) the amount of sale proceeds required to pay the aggregate Exercise Price and any required tax withholding relating to the exercise, and (C) such other
documentation as the Committee and the broker shall require to effect a same-day exercise and sale. 

        6.    General Restrictions.    Subject to the terms of this Option
Agreement and the Plan, the Option may be exercised with respect to vested Units covered by the Option as set forth in Section 5 above. The
Option shall not be assignable or transferable except as expressly provided by the Plan, this Option Agreement or approved by the Committee in its sole discretion. 

        7.    Termination of Service Other Than for Death or Disability.    In
the case of termination of Participant's service relationship with the Partnership, Company, or any Affiliate, whether by the action of the Participant or the Partnership, Company or any Affiliate,
for any reason other than due to Participant's death or Disability (as defined herein), Participant may, until the earlier of (a) 90 days from the date of such termination (b) the
expiration of the Option in accordance with Section 4 of this Option Agreement, or (c) the forfeiture and termination of the vested
portion of any Option pursuant to Section 5(a) above, exercise the vested portion of any Option in accordance with  Section 5 of this Option
Agreement. To the extent such Option was not vested immediately prior to such termination, the Option shall
automatically terminate and become null and void. 

        8.    Death or Disability.    In the case of termination of
Participant's service relationship with the Partnership, Company, or an Affiliate thereof due to death or Disability, Participant or Participant's estate (or any person who acquired the right to
exercise such Option by bequest or inheritance or otherwise by reason of Participant's death) as applicable, may, until the earlier of (a) the expiration of the Option in accordance with  Section 4 of this Option Agreement or (b) the forfeiture and termination of the vested portion of any Option pursuant to  Section 5(a) above, exercise the vested portion of any Option in
accordance with Section 5
of this Option Agreement to the extent such Option had vested immediately prior to the time of Participant's death or Disability. To the extent such Option was not vested immediately prior to such
termination, the Option shall automatically terminate and become null and void. "Disability" shall mean the determination by a physician selected by the
Partnership that Participant has been unable to substantially perform Participant's usual and customary duties for a period of at least one hundred twenty (120) consecutive days or a
non-consecutive period of one hundred eighty (180) days during any twelve-month period as a result of incapacity due to mental or physical illness or disease. 

        9.    Rights as a Unitholder.    Participant, or a transferee of the
Option, shall have no rights as a holder of a limited partner interest in the Partnership pursuant to this Option Agreement except as to any Units actually purchased pursuant to the exercise of the
Option. 

2

 

        10.    Plan Controlling Document.    Participant agrees that the Plan
is the controlling instrument and that to the extent there is any conflict between the terms of the Plan and this Option Agreement, the Plan shall control and be the governing document. 

        11.    Limited Partnership Agreement.    As a condition to the
exercise of the Option, Participant agrees to be bound by all applicable provisions of the Partnership's Agreement of Limited Partnership, as amended from time to time. 

        12.    Taxes.    The Partnership and any affiliate thereof are
authorized to withhold from any payment relating to the Option, or any payroll or other payment to Participant, amounts of withholding and other taxes due or potentially payable in connection with the
exercise of the Option, and to take such other action as the Committee may deem advisable to enable the Partnership, any affiliate, and Participant to satisfy obligations for the payment of
withholding taxes and other tax obligations relating to the Option. This authority shall include authority to withhold or receive Units or other property and to make cash payments in respect thereof
in satisfaction of Participant's tax obligations, either on a mandatory or elective basis in the discretion of the Committee. 

        13.    Section 409A Acknowledgement and Release.    Participant
understands that payments under the Plan and this Option Agreement are potentially subject to Section 409A of the Code and that if the Plan and Option Agreement do satisfy an exception to Code
Section 409A or do not comply with the requirements of Section 409A and the applicable guidance thereunder, then Participant may incur adverse tax consequences under Section 409A.
Participant acknowledges and agrees that (a) Participant is solely responsible for all obligations arising as a result of the tax consequences associated with payments under this Option
Agreement including, without limitation, any taxes, interest or penalties associated with Section 409A, (b) Participant is not relying upon any written or oral statement or
representation the Partnership, Company or any Affiliate thereof, or any of their respective employees, directors, officers, attorneys or agents (collectively, the "Partnership
Parties") regarding the tax effects associated with the execution of this Option Agreement and the payment under this Option Agreement and the Plan, and (c) in deciding
to enter into this Option Agreement, Participant is relying on his or her own judgment and the judgment of the professionals of his or her choice with whom Participant has consulted. Participant
hereby releases, acquits and forever discharges the Partnership Parties from all actions, causes of actions, suits, debts, obligations, liabilities, claims, damages, losses, costs and expenses of any
nature whatsoever, known or unknown, on account of, arising out of, or in any way related to the tax effects associated with the execution of this Option Agreement and any payment under the Plan and
this Option Agreement. 

        14.    No Right to Continued Employment.    Nothing in this Option
Agreement shall be deemed by implication or otherwise to confer upon the Participant the right to continue in the employment or service of the Partnership, Company or any Affiliate thereof, or impose
any limitation on any right of the Partnership, Company or any Affiliate thereof, to terminate the Participant's employment or service at any time for any reason. 

        15.    Service Relationship.    For purposes of this Option Agreement,
Participant will be considered to be in continuous service as long as Participant remains an Employee, Director, or Consultant (as applicable) of either the Partnership, Company, or any Affiliate
thereof or an employee, consultant, or director of an entity or a parent or subsidiary of such entity assuming or substituting new units for the Units covered by the Option. Any question as to whether
and when there has been a termination of such Service, and the cause of such termination, will be determined by the Committee, and its determination will be final. 

        16.    Issuance of Units.    The Partnership shall not be obligated to
issue any Units pursuant to the Option at any time when the Units covered by such Option have not been registered under the Securities Act of 1933, as amended, and such other state and federal laws,
rules or regulations as the Partnership or the Committee deems applicable and, in the opinion of legal counsel for the 

3

 

Partnership,
there is no exemption from the registration requirements of such laws, rules or regulations available for the issuance and sale of such Units. 

        17.    Notices.    Any notices given in connection with this Option
Agreement shall, if issued to Participant, be delivered to Participant's current address on file with the Partnership, or if issued to the Partnership, be delivered to the Partnership's principal
offices. 

        18.    Execution of Receipts and Releases.    Any payment of cash or
any issuance or transfer of Units or other property to Participant, or to Participant's legal representatives, heirs, legatees or distributees, in accordance with the provisions hereof, shall, to the
extent thereof, be in full satisfaction of all claims of such persons hereunder. The Partnership may require Participant or Participant's legal representatives, heirs, legatees or distributees, as a
condition precedent to such payment or issuance, to execute a release and receipt therefor in such form as it shall determine. 

        19.    Successors.    This Option Agreement shall be binding upon
Participant, Participant's legal representatives, heirs, legatees and distributees, and upon the Partnership, its successors and assigns. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

4

 

        IN WITNESS WHEREOF, the parties hereto have executed this Option Agreement to be effective as of the day and year first above written. 

	 	 	ABRAXAS ENERGY PARTNERS, L.P.
	 	 	By:	Abraxas General Partner, LLC
	 	 	Its:	General Partner
	

 	
 	

By:	

 Barbara M. Stuckey

President and Chief Operating Officer
	
 	
 	

PARTICIPANT:
	

 	
 	
By:	

	

 	
 	

 	

 
	 	 	Printed Name:	

5

   APPENDIX A  

FORM OF OPTION EXERCISE NOTICE  

ABRAXAS ENERGY PARTNERS, L.P.

LONG-TERM INCENTIVE PLAN

OPTION EXERCISE NOTICE  

	

PLEASE PRINT:	

 
	

TODAY'S DATE:	

	

OPTIONHOLDER NAME:	

	

MAILING ADDRESS:	

	

 	

	

Attention:	

	

 

I
hereby exercise my Option to acquire                        Units, as defined in the ABRAXAS ENERGY PARTNERS, L.P. Long-Term
Incentive Plan (the
"Plan"), at my exercise price per Unit of $                        . Enclosed is
the original of my Option Agreement evidencing my Option hereby exercised and
consideration in a form provided for in my Option Agreement in the amount of $                        . 

I
hereby represent that I have previously received a copy of the Plan from the Partnership and that I understand the terms and restrictions described therein and agree to be bound by the terms of such
document and my Option Agreement. 

	

 	
 	

 	

 
	 	 	By:	

Receipt
of Notice and Payment in Full Acknowledged: 

	

By:	

	

 

	

Name:	

	

 

	

Date:	

	

 

	

NOTE:	

If exercising the Option represented by the enclosed Option Agreement to purchase less than all of the Units to which the Option relates, the original Option Agreement will be returned with an appropriate notation evidencing the Units for which the
Option has been exercised.

Appendix A-1

QuickLinks

ABRAXAS ENERGY PARTNERS, L.P. LONG-TERM INCENTIVE PLAN OPTION AGREEMENTQuickLinks
 -- Click here to rapidly navigate through this document

EXHIBIT 10.9  

 
 

ABRAXAS ENERGY PARTNERS, L.P.
  LONG-TERM INCENTIVE PLAN
  RESTRICTED UNIT GRANT AGREEMENT    
    

        This Restricted Unit Grant Agreement ("Grant Agreement") is made and entered into effective as
of                        ,
2007 (the "Grant Date") by and between ABRAXAS ENERGY PARTNERS, L.P., a Delaware limited partnership (the
"Partnership"), and                        ("Participant"). 

        WHEREAS, the Partnership considers it to be in its best interest that Participant be given a proprietary interest in the Partnership and
an added incentive to advance the interests of the Partnership; and 

        WHEREAS, the Partnership desires to accomplish such objectives by granting Participant Restricted Units pursuant to the Abraxas Energy
Partners, L.P. Long-Term Incentive Plan, which is incorporated by reference herein (the "Plan"). 

        NOW, THEREFORE, in consideration of the mutual agreements hereinafter set forth, the parties hereby agree as follows: 

        1.    Defined Terms.    Unless otherwise defined herein, capitalized
terms used in this Grant Agreement shall have the meaning given such terms in the Plan. 

        2.    Grant of Restricted Units.    

        (a)   The Partnership hereby grants to
Participant                        Restricted Units, under and subject to the terms and
conditions of this Grant Agreement and the Plan. 

        (b)   Each certificate issued in respect of the Restricted Units shall be registered in the Participant's name and deposited by
the Participant, with a unit power endorsed in blank, with the Partnership and shall bear the following or similar legend: 

"THE TRANSFERABILITY OF THIS CERTIFICATE AND THE COMMON UNITS REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) CONTAINED IN THE ABRAXAS ENERGY
PARTNERS, L.P. LONG-TERM INCENTIVE PLAN AND THE RESTRICTED UNIT GRANT AGREEMENT ENTERED INTO BETWEEN THE REGISTERED OWNER AND ABRAXAS ENERGY PARTNERS, L.P. IN RESPECT OF SUCH
UNITS."

        3.    Vesting and Restricted Period.    Provided that Participant
remains in continuous service with the Partnership, Company or an Affiliate thereof from the Grant Date through the relevant vesting date, vesting will occur and restrictions will lapse with respect
to 25% of the Restricted Units on the first (1st) anniversary of the Grant Date, with respect to an additional 25% of the Restricted Units on the second (2nd) anniversary
of the Grant Date, with respect to an additional 25% of the Restricted Stock on the third (3rd) anniversary of the Grant Date, and with respect to the remaining 25% of the Restricted
Stock on the fourth (4th) anniversary of the Grant Date. Notwithstanding the foregoing, all Restricted Units not previously vested, will vest immediately prior to the effective date of,
and contingent upon, a Change of Control. Upon the vesting of each Restricted Unit, the Participant shall be entitled to hold an unrestricted Unit with all restrictions removed from his or her Unit
certificate and shall be entitled to delivery of such Unit from the Partnership, subject to Section 6 and  Section 11 of this Grant Agreement.

        4.    General Restrictions.    The Restricted Units shall not be
assignable or transferable, except as expressly provided in the Plan or approved by the Committee in its sole discretion, until the date on which the restrictions on such Units lapse, and any such
attempted disposition will be void. The Partnership will not be required (1) to transfer on its books any Units that will have been transferred in violation of this grant Agreement or
(2) to treat as owner of such Units, to accord rights to vote as 

 

such
owner (if any), or to pay distributions (if any) to any transferee to whom such Units will have been so transferred. 

        5.    Distributions.    Except as provided in this  Section 5, a
Participant shall have no rights to a distribution with respect to unvested Restricted Units. Any distributions made by the
Partnership with respect to a Restricted Unit shall be held in escrow, without interest, as described in Section 6 of this Grant
Agreement, until the Restricted Unit under which such distribution was made is either vested or forfeited. Upon the vesting of such Restricted Unit, all distributions attributable to such Unit held in
escrow will be made within 70 days of such vesting date, subject to Section 6 and  Section 11 of this Grant Agreement. Upon the forfeiture of
a Restricted Unit, all distributions attributable to such Unit in escrow shall be
forfeited to the Partnership, and Participant shall not be entitled to any such amounts. 

        6.    Escrow.    To ensure that the Restricted Units and any
distributions made thereunder will be available to the Partnership upon forfeiture, Participant will be required to deposit the certificate evidencing the Units with the Partnership or an agent
designated by the Partnership under the terms and conditions of escrow and security agreements approved by the Partnership, and all distributions made upon such Units will also be deposited in such
escrow. The Partnership will bear the expenses of the escrow. Within 70 days after the lapsing of the restrictions, the escrow agent or the Partnership will deliver the Units no longer subject
to such restrictions, and any distributions attributable to such Units, to the Participant, subject to applicable withholding; provided, however, the Partnership may require a written request from
Participant for the actual delivery of any Units. 

        7.    Death or Disability.    In the case of termination of
Participant's service relationship with the Partnership, Company, or any Affiliate due to death or Disability, the restricted period established hereunder shall automatically and immediately lapse,
and the applicable Units shall be deemed vested on or before the date of death or Disability. "Disability" shall mean the determination by a physician
selected by the Partnership that Participant has been unable to substantially perform Participant's usual and customary duties for a period of at least one hundred twenty (120) consecutive days
or a non-consecutive period of one hundred eighty (180) days during any twelve-month period as a result of incapacity due to mental or physical illness or disease. 

        8.    Termination of Service other than for Death or Disability.    In
the case of termination of Participant's service relationship with the Partnership, Company, or any Affiliate, whether by the action of the Participant or the Partnership, Company or any Affiliate,
for any reason other than due to Participant's death or Disability, all unvested outstanding Restricted Units granted hereby shall be automatically and immediately forfeited, and Participant hereby
agrees to undertake any action and execute any document or instrument requested by the Partnership to effect such forfeiture of Restricted Units resulting from any such termination of service. 

        9.    Plan Controlling Document.    Unless otherwise defined herein,
capitalized terms shall have the meaning given such terms in the Plan. Participant agrees that the Plan is the controlling instrument and that to the extent there is any conflict between the terms of
the Plan and this Grant Agreement, the Plan shall control and be the governing document. 

        10.    Limited Partnership Agreement.    Participant agrees to be
bound by all applicable provisions of the Partnership's Agreement of Limited Partnership, as amended from time to time. 

        11.    Taxes.    The Partnership and any affiliate thereof are
authorized to withhold from any payment relating to the Restricted Units granted hereby, or any payroll or other payment to Participant, amounts of withholding and other taxes due or potentially
payable in connection with the Restricted Units granted hereby, and to take such other action as the Committee may deem advisable to enable the Partnership, any affiliate, and Participant to satisfy
obligations for the payment of withholding taxes and other tax obligations relating to the Restricted Units granted hereby. This 

2

 

authority
shall include authority to withhold or receive Units or other property and to make cash payments in respect thereof in satisfaction of Participant's tax obligations, either on a mandatory or
elective basis in the discretion of the Committee. 

        12.    Election Under Section 83(b) of the Code.    Participant
understands that Participant should consult with Participant's tax advisor regarding the advisability of filing with the Internal Revenue Service an election under section 83(b) of the Code
with respect to the Restricted Units so acquired by Participant for which the restrictions have not lapsed. This election must be filed no later than 30 days after the date on which Participant
is issued such Restricted Units. This time period cannot be extended. Participant acknowledges (1) that Participant has been advised to consult with a tax advisor regarding the tax consequences
to Participant of the receipt of the Restricted Units and the receipt of any distributions thereunder and (2) that timely filing of a section 83(b) election is Participant's sole
responsibility, even if Participant requests the Partnership or its representative to file such election on Participant's behalf. 

        13.    No Right to Continued Employment.    Nothing in this Grant
Agreement shall be deemed by implication or otherwise to confer upon the Participant the right to continue in the employment or service of the Partnership, Company or any Affiliate thereof, or impose
any limitation on any right of the Partnership, Company or any Affiliate thereof, to terminate the Participant's employment or service at any time for any reason. 

        14.    Service Relationship.    For purposes of this Grant Agreement,
Participant will be considered to be in continuous service as long as Participant remains an Employee, Director, or Consultant (as applicable) of either the Partnership, Company, or an Affiliate
thereof or an employee, consultant, or director of an entity or a parent or subsidiary of such entity assuming or substituting new restricted units for the Restricted Units. Any question as to whether
and when there has been a termination of such service, and the cause of such termination, will be determined by the Committee, and its determination will be final. 

        15.    Issuance of Units.    The Partnership shall not be obligated to
issue any Restricted Units at any time when the Restricted Units have not been registered under the Securities Act of 1933, as amended, and such other state and federal laws, rules or regulations as
the Partnership or the Committee deems applicable and, in the opinion of legal counsel for the Partnership, there is no exemption from the registration requirements of such laws, rules or regulations
available for the issuance of such Restricted Units. 

        16.    Notices.    Any notices given in connection with this Grant
Agreement shall, if issued to Participant, be delivered to Participant's current address on file with the Partnership, or if issued to the Partnership, be delivered to the Partnership's principal
offices. 

        17.    Execution of Receipts and Releases.    Any payment of cash or
any issuance or transfer of Restricted Units or other property to Participant, or to Participant's legal representatives, heirs, legatees or distributees, in accordance with the provisions hereof,
shall, to the extent thereof, be in full satisfaction of all claims of such persons hereunder. The Partnership may require Participant or Participant's legal representatives, heirs, legatees or
distributees, as a condition precedent to such payment or issuance, to execute a release and receipt therefor in such form as it shall determine. 

        18.    Successors.    This Grant Agreement shall be binding upon
Participant, Participant's legal representatives, heirs, legatees and distributees, and upon the Partnership, its successors and assigns. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

3

 

        IN WITNESS WHEREOF, the parties hereto have executed this Grant Agreement to be effective as of the day and year first above written. 

	 	 	ABRAXAS ENERGY PARTNERS, L.P.
	 	 	By:	Abraxas General Partner, LLC
	 	 	Its:	General Partner
	

 	
 	

By:	

 Barbara M. Stuckey

President and Chief Operating Officer
	
 	
 	

PARTICIPANT:
	

 	
 	
By:	

	

 	
 	

 	

 
	 	 	Printed Name:	

4

QuickLinks

ABRAXAS ENERGY PARTNERS, L.P. LONG-TERM INCENTIVE PLAN RESTRICTED UNIT GRANT AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00132-of-00352.parquet"}]]