Document:

exv10w34

Exhibit 10.34

SUMMARY SHEET

OF

2011 COMPENSATION

Director Compensation

     The compensation program for our non-employee directors currently consists of a combination of
cash and equity-based awards. The cash component includes an annual retainer of $50,000 (one-half
of which is subject to mandatory deferral in the form of deferred share units as described below)
and an additional fee of $1,500 for each Board and committee meeting attended. In addition, our
non-executive Chairman of the Board receives an annual cash retainer of $60,000 and committee
chairs receive an annual cash fee of $10,000. At the end of each calendar quarter, non-employee
directors are paid one-fourth of their annual retainers and committee chair annual fees and fees
for attending Board and committee meetings held during the quarter.

     Each non-employee director also receives 500 deferred share units (“DSUs”) as of the date of
each annual meeting of stockholders. The value of each DSU is equal to the value of a share of our
common stock. The DSUs are immediately vested and subject to mandatory deferral until the
director’s retirement or other termination of service from the Board. Non-employee directors who
are elected or re-elected also receive restricted stock units (“RSUs”) as of the annual meeting
date with an initial value, based on the price of our common stock on the date of grant, equal to
$120,000. The RSUs are immediately vested and subject to mandatory deferral until the later of (1)
the director’s retirement or other termination of service from the Board or (2) the date that is
three years after the grant date. Directors who are appointed to the Board during the year between
annual meetings receive the foregoing DSU and RSU grants at the following annual meeting. Both the
DSUs and the RSUs are settled in shares of our common stock.

     The terms and conditions of the RSU grants, as well as other equity-based awards that
non-employee directors are eligible to receive, are set forth in the Stock Plan for Non-Employee
Directors. Copies of this plan and the form of RSU award agreement are filed as exhibits to our
periodic reports.

     The terms and conditions of the DSU grants are set forth in our Restated Deferred Compensation
Plan for Non-Employee Directors. Pursuant to this plan, we require that 50% of a director’s annual
retainer for Board service be deferred and credited to a deferred compensation account in the form
of DSUs, the value of which account is determined by the value of our common stock, until the
director owns a total of 5,000 DSUs. A copy of this plan is filed as an exhibit to our periodic
reports.

     We also provide non-employee directors with travel accident insurance when on Zimmer business
and reimburse or pay the reasonable travel, lodging and meal expenses incurred by non-employee
directors when traveling on Zimmer business or attending approved director education programs.

     Changes to our non-employee director compensation program may be disclosed in future proxy
statements or other periodic reports.

Named Executive Officer Compensation

     Our executive officers serve at the discretion of the Board of Directors. From time to time,
the Compensation and Management Development Committee of the Board of Directors reviews and
determines the salaries that are paid to our executive officers. We do not have written employment
agreements with our executive officers. Effective April 1, 2011, the following will be the base
salaries for our Chief Executive Officer, our Chief Financial Officer and three other current
executive officers who we expect will be identified as named executive officers in the definitive
proxy statement for our 2011 annual meeting of stockholders to be filed with the Securities and
Exchange Commission.

 

 

	 	 	 	 	 
	 	 	Base Salary
	 	 	Effective April 1,
	Name and Position	 	2011
	David C. Dvorak
	 	$	870,400	 
	     President and Chief Executive Officer
	 	 	 	 
	James T. Crines
	 	$	506,200	 
	     Executive Vice President, Finance and Chief Financial Officer
	 	 	 	 
	Bruno A. Melzi
	 	€	436,200	 
	     Chairman, Europe, Middle East and Africa
	 	 	 	 
	Jeffery A. McCaulley
	 	$	526,100	 
	     President, Zimmer Reconstructive
	 	 	 	 
	Jeffrey B. Paulsen
	 	$	476,200	 
	     Group President, Global Businesses
	 	 	 	 

     During 2011, each of the executive officers identified above is also eligible to receive an
annual cash incentive award, based upon a specified percentage of his or her base salary, under our
Executive Performance Incentive Plan (the “Incentive Plan”) and to receive awards under our 2009
Stock Incentive Plan, as amended (the “Stock Plan”). Copies of the Incentive Plan, the Stock Plan
and any future revisions of these plans are filed as exhibits to our periodic reports. Effective
April 1, 2011, the target amount under the Incentive Plan for each of these officers will be 125%
of base salary for Mr. Dvorak, 80% of base salary for each of Messrs. Crines and McCaulley and 75%
of base salary for each of Messrs. Melzi and Paulsen.

     The executive officers identified above are also eligible to participate in other employee
benefit plans and arrangements as described in our proxy statements. For Messrs. Dvorak, Crines,
McCaulley and Paulsen, who are based in the United States, these include a savings and investment
(401(k)) plan, a supplemental savings and investment plan and a long-term disability income plan.
For Messrs. Dvorak and Crines, each of whom was hired before September 2002, these also include a
defined benefit pension plan and a supplemental pension plan. For Mr. Melzi, who is based in Italy,
these include a defined benefit pension plan and a defined contribution plan.

     Each of these executive officers has also entered into a change in control severance agreement
that provides certain severance benefits following a change in control of Zimmer and termination of
the executive’s employment. Copies of those agreements or the form of those agreements are filed as
exhibits to our periodic reports.exv10w25

Exhibit 10.25

NEWFIELD EXPLORATION COMPANY

2011 ANNUAL INCENTIVE COMPENSATION PLAN

     This 2011 Annual Incentive Compensation (this “2011 Plan”) of Newfield Exploration Company, a
Delaware corporation (the “Company”), was adopted by the Board of Directors (the “Board”) of the
Company effective as of November 9, 2010.

Recitals:

          WHEREAS, effective for the Performance Period beginning on January 1, 1993, the Board adopted
the 1993 Annual Incentive Plan (the “1993 Plan”), which plan had a purpose substantially similar to
this 2011 Plan;

          WHEREAS, effective for the Performance Period beginning January 1, 2003, the Board adopted the
2003 Annual Incentive Plan (the “2003 Plan”) and terminated the 1993 Plan effective as of December
31, 2002;

          WHEREAS, effective January 1, 2005, the Board adopted the First Amended and Restated 2003
Incentive Plan (“First Amended 2003 Plan”) to provide for the termination of the 2003 Plan upon a
change of control, to conform the 2003 Plan to legislation affecting deferred compensation
arrangements and to amend the 2003 Plan in other respects;

          WHEREAS, effective July 27, 2007, the Board adopted the Second Amended and Restated 2003
Incentive Plan (the “Second Amended 2003 Plan”) to further amend and restate the First Amended 2003
Plan to incorporate certain further changes to comply with Section 409A of the Internal Revenue
Code of 1986 and to conform the definition of Change of Control in the First Amended 2003 Plan to
the definition used in other arrangements;

          WHEREAS, the Board now desires to terminate the Second Amended 2003 Plan effective as of
December 31, 2010, although any awards granted under the 2003 Plan, the First Amended 2003 Plan or
the Second Amended 2003 Plan shall remain in effect in accordance with the applicable terms and
conditions; and

          WHEREAS, the Board believes it to be in the best interests of the Company and its employees to
adopt this 2011 Plan effective beginning January 1, 2011;

          NOW, THEREFORE, in consideration of the foregoing and for the purpose described below,
effective as of the date first written above, the Board hereby adopts this 2011 Plan as set forth
herein.

I.

Purpose

          This 2011 Plan is intended to provide a means whereby employees of the Company and its
Subsidiaries may develop a sense of proprietorship and personal involvement in the development and
financial success of the Company and its Subsidiaries, to attract and retain employees of
outstanding competence and ability and to encourage them to remain with and devote their best
efforts to the business of the Company and its Subsidiaries, and to reward such employees for
outstanding performance, thereby advancing the interests of the Company and aligning employee
interests with those of the Company’s stockholders. To this end, the 2011 Plan provides a means of
annually rewarding participants based on the overall performance of the Company and its business
units and, where appropriate, on a participant’s personal performance.

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II.

Definitions

          Where the following words and phrases appear in this 2011 Plan, they shall have the respective
meanings set forth below unless their context clearly indicates to the contrary:

	 	a)	 	“Award” means an amount granted to an Eligible Employee pursuant to Article V that is
payable on or before March 1 following the Performance Period.
	 
	 	b)	 	“Board” means the Board of Directors of the Company.
	 
	 	c)	 	“Change of Control” means the occurrence of any of the following:

	 	i.	 	the Company is not the surviving Person in any merger, consolidation or other
reorganization (or survives only as a subsidiary of another Person);
	 
	 	ii.	 	the consummation of a merger or consolidation of the Company with another
Person pursuant to which less than 50% of the outstanding voting securities of the
surviving or resulting corporation are issued in respect of the capital stock of the
Company;
	 
	 	iii.	 	the Company sells, leases or exchanges all or substantially all of its assets
to any other Person;
	 
	 	iv.	 	the Company is to be dissolved and liquidated;
	 
	 	v.	 	any Person, including a “group” as contemplated by Section13(d)(3) of the
Securities Exchange Act of 1934, acquires or gains ownership or control (including the
power to vote) of more than 50% of the outstanding shares of the Company’s voting
stock (based upon voting power); or
	 
	 	vi.	 	as a result of or in connection with a contested election of directors, the
Persons who were directors of the Company before such election cease to constitute a
majority of the Board.

Notwithstanding the foregoing, the definition of “Change of Control” shall not include (A) any
merger, consolidation, reorganization, sale, lease, exchange, or similar transaction involving
solely the Company and one or more Persons that were wholly owned, directly or indirectly, by the
Company immediately prior to such event and (B) any event that is not a “change in control event”
within the meaning of Section 409A.

	 	f)	 	“Code” means the Internal Revenue Code of 1986, as amended.
	 
	 	g)	 	“Committee” means the Compensation & Management Development Committee of the Board.
	 
	 	h)	 	“Company” means Newfield Exploration Company and its successors.
	 
	 	i)	 	“Effective Date” means January 1, 2011.
	 
	 	j)	 	“Eligible Employee” means, with respect to a particular Performance Period, each
employee of the Company or a Subsidiary who was (i) employed by the Company or a
Subsidiary on both October 1 and December 31 of such Performance Period and (ii)
recommended by the Chief Executive Officer of the Company to receive an Award.
	 
	 	k)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended.
	 
	 	l)	 	“Incentive Pool” means the aggregate amount to be awarded with respect to a
particular Performance Period as determined pursuant to Article IV.
	 
	 	m)	 	“Performance Period” means any calendar year beginning on or after January 1, 2011.
	 
	 	n)	 	“Person” means any individual, partnership, corporation, limited liability company,
trust, incorporated or unincorporated organization or association or other legal entity of
any kind.
	 
	 	o)	 	“ Section 409A” means Section 409A of the Code and any applicable regulations or
rulings thereunder.
	 
	 	p)	 	“Subsidiary” means any entity that is consolidated with the Company for financial
accounting purposes in accordance with generally accepted accounting principles.

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III.

Administration of Plan

     This 2011 Plan shall be administered by the Committee. The Committee is authorized to
interpret this 2011 Plan and may from time to time adopt such rules and regulations, consistent
with the provisions of this 2011 Plan, as it may deem advisable to carry out this 2011 Plan. All
determinations made by the Committee under this 2011 Plan, and all interpretations of this 2011
Plan by the Committee, shall be final and binding on all interested parties.

IV.

Determination of Incentive Pool

     The amount of the Incentive Pool for a particular Performance Period shall be determined in
good faith by the Committee on an annual basis, taking into consideration various factors,
including, without limitation, earnings per share, total shareholder return, cash return on
capitalization, increased revenue, revenue ratios, net income, stock price, market share, return on
equity, return on assets, return on capital, return on capital compared to cost of capital, return
on capital employed, return on invested capital, shareholder value, net cash flow, operating
income, earnings before interest and taxes, cash flow, cash flow from operations, cost reductions,
cost ratios, profit after tax, performance relative to a peer group and amounts recommended by the
Chief Executive Officer or any consultant engaged by the Committee. As soon as administratively
feasible immediately before or immediately after the end of a Performance Period, the Committee
shall determine the amount of the Incentive Pool with respect to such Performance Period. If the
financial information for such Performance Period is not final at the time that the Committee meets
to determine the amount of the Incentive Pool, the Committee may use the then best available
estimates of such financial information to determine the amount of the Incentive Pool. Such
determination shall be in writing and shall be filed with the appropriate records of the Company.

V.

Grant of Awards

     At any time and from time to time after the determination of the Incentive Pool with respect
to a Performance Period and prior to the February 28 following the end of such Performance Period,
the Committee shall grant Awards to those Eligible Employees that the Committee, in its discretion,
determines should receive Awards. The amount of such Awards shall be determined by the Committee
in its discretion and shall not exceed, in the aggregate, the Incentive Pool. The Committee shall
consider the recommendations of the Chief Executive Officer of the Company in making such
determinations.

VI.

Duration, Amendment and Termination

	 	a)	 	The Board shall have the right to amend this 2011 Plan from time to time, to
terminate it entirely or to direct the discontinuance of Awards either temporarily or
permanently. The Board may make any amendment to any outstanding Award that it believes is
necessary or helpful to comply with any applicable law including, without limitation,
Section 409A. However, no amendment, discontinuance or termination of this 2011 Plan shall
operate to annul an outstanding Award unless otherwise provided by the terms of this 2011
Plan. The term of this 2011 Plan shall be from its Effective Date until terminated by the
Board.
	 
	 	b)	 	In furtherance, and not in limitation, of paragraph (a) above, at any time determined
by the Board, this 2011 Plan may be restructured by the Board to, among any other
alterations or changes determined by the Board in its sole discretion, (i) alter the
eligibility requirements for awards under such plan or (ii) provide for a Performance
Period that is shorter or longer.
	 
	 	c)	 	Notwithstanding any provision of this 2011 Plan to the contrary, on the date of a
Change of Control, (i) all Plan bonus obligations accrued to such date on the books of the
Company that are not the subject of previous Awards shall be paid in cash to such
employees of the Company and its

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	 	 	 	Subsidiaries, and in such amounts with respect to each such employee, as the Committee
shall determine in its sole discretion based upon recommendations from the Chief Executive
Officer of the Company and (ii) upon payment of all such Plan obligations, this 2011 Plan
shall terminate.

VII.

Miscellaneous

	 	a)	 	Neither this 2011 Plan nor any grant of Awards under this 2011 Plan shall confer on
any employee the right to continued employment by the Company or any Subsidiary, or affect
in any way the right of the Company or such Subsidiary to terminate the employment of such
employee at any time. Any question as to whether and when there has been a termination of
an employee’s employment and the cause of such termination shall be determined by the
Committee, and its determination shall be final.
	 
	 	b)	 	Except to the extent set forth herein as to the rights of the estates or
beneficiaries of employees to receive payments, Awards under this 2011 Plan are
non-assignable and non-transferable and are not subject to anticipation, adjustment,
alienation, encumbrance, garnishment, attachment or levy of any kind.
	 
	 	c)	 	Neither the establishment of this 2011 Plan nor the granting of Awards shall be
deemed to create a trust. This 2011 Plan and all unpaid awards shall constitute an
unfunded, unsecured liability of the Company to make payments in accordance with the
provisions of this 2011 Plan, and no Person shall have any security or other interest in
any assets of the Company or otherwise.
	 
	 	d)	 	The existence of this 2011 Plan and the Awards granted hereunder shall not affect in
any way the right or power of the Board or the stockholders of the Company to authorize or
consummate any merger or consolidation of the Company, the dissolution or liquidation of
the Company or any sale, lease, exchange or other disposition of all or any part of its
assets or business or any other corporate act or proceeding.
	 
	 	e)	 	Neither the officers nor the directors of the Company nor the members of the
Committee shall under any circumstances have any liability with respect to this 2011 Plan
or its administration except for gross and intentional malfeasance. The officers and
directors of the Company and the members of the Committee may rely upon opinions of
counsel as to all matters, including the creation, operation and interpretation of this
2011 Plan.
	 
	 	f)	 	No portion of this 2011 Plan shall be effective at any time when such portion
violates an applicable state or federal law, regulation or governmental order or directive
that is subject to sanctions, whether direct or indirect.

VIII.

Compliance with Section 409A

     The Company intends that this 2011 Plan by its terms and in operation meet the requirements of
Section 409A so that compensation deferred under this 2011 Plan (and applicable investment
earnings) shall not be included in income under Section 409A. Any ambiguities in this 2011 Plan
shall be construed to effect this intent. If any provision of this 2011 Plan is found to be in
violation of Section 409A, then such provision shall be deemed to be modified or restricted to the
extent and in the manner necessary to render such provision in conformity with Section 409A, or
shall be deemed excised from this 2011 Plan, and this 2011 Plan shall be construed and enforced to
the maximum extent permitted by Section 409A as if such provision had been originally incorporated
in this 2011 Plan as so modified or restricted, or as if such provision had not been originally
incorporated in this 2011 Plan, as the case may be.

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