Document:

exv10w15

 

Exhibit 10.15

ANNUAL INCENTIVE PLAN

2008 Plan Year

 Guidelines

KIRBY CORPORATION

January 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Introduction 
	 	 	2	 
	 
	 	 	 	 
	The Annual Incentive Plan 
	 	 	3	 
	 
	 	 	 	 
	Performance Measurement Period 
	 	 	3	 
	 
	 	 	 	 
	Eligibility 
	 	 	3	 
	 
	 	 	 	 
	Plan Objectives 
	 	 	4	 
	 
	 	 	 	 
	Performance Measures 
	 	 	4	 
	 
	 	 	 	 
	Corporate and Business Group Weighting 
	 	 	5	 
	 
	 	 	 	 
	Individual Bonus Targets 
	 	 	6	 
	 
	 	 	 	 
	Annual Incentive Plan Concept 
	 	 	6	 
	 
	 	 	 	 
	Performance Measures and Weighting 
	 	 	7	 
	 
	 	 	 	 
	Performance Standards and Award Opportunities 
	 	 	7	 
	 
	 	 	 	 
	Example Award Calculation 
	 	 	8	 
	 
	 	 	 	 
	Administration 
	 	 	9	 

1

 

Introduction

Kirby Corporation established its Annual Incentive Plan to focus employees on identifying and
achieving business strategies that will grow the business and lead to an increase in shareholder
value. The Annual Incentive Plan is also intended to reward superior performance by employees, for
their contributions toward achieving Kirby’s objectives. This program may be offered, in whole or
in part, to wholly owned subsidiaries of the Company, at the Company’s discretion.

Certain aspects of this Bonus Plan are complex. Although these guidelines establish rules for Plan
operation, those rules may not work in all cases. Therefore, the Compensation Committee of the
Kirby Board of Directors shall have the discretionary authority to interpret, and if determined
appropriate, deviate from the Guide to insure that the awards are consistent with the Plan’s
purposes and the Company’s interests. All decisions by the Compensation Committee shall be final
and binding.

This Plan, or any part thereof, may be amended, modified, or terminated at any time, without prior
notice, by written authorization of the President and Chief Executive Officer of the Company.

This Plan supercedes all prior annual incentive bonus plans or programs maintained by the Company.

The initial Plan became effective January 1, 2003.

2

 

The Annual Incentive Plan

The Annual Incentive Plan is an award for total Company performance, and for the performance of
our four Business Groups; Kirby Inland Marine, Kirby Engine Systems, Dixie Offshore Transportation
and Osprey, Line. Awards are 75% formula-driven and 25% driven by individual performance, and are
based on achieving Company, Business Group and individual performance objectives.

Performance Measurement Period

Performance is measured on a calendar year basis for the Annual Incentive Plan. The Performance
Period begins on January 1 and ends on December 31.

Eligibility

	•	 	Generally, shore staff managerial employees in salary grades 15 and above, and Wheelhouse employees classified as Captain,
Relief Captain or Pilot, will be eligible for consideration to be
participants. Selection for participation in the Plan will be based
upon each position’s ability to impact long-term financial results
of the Company. Consequently, all employees in positions at
salary grades 15 and above might not be included in the Plan,
and employees in positions below salary grade 15 might be
included.
	 
	•	 	In order to be eligible to receive an award participants must be employed on the last day of the Performance Period, and on the
date bonuses are actually paid for the respective Performance
Period, unless their earlier termination is due to death, normal
retirement1 or disability1.
	 
	•	 	It should also be noted that participation in the Bonus Plan in one
year does not guarantee participation in future years.
Participants in the Plan will be notified annually of their selection
for participation.

 

			
	1	 	Normal retirement or disability as defined for shore based employees in the Company’s
Profit Sharing Plan, and as defined for wheelhouse employees in the Vessel Pension Plan

3

 

Plan Objectives

The Annual Incentive Plan has five key objectives:

	 	•	 	Provide an annual incentive plan that drives performance toward objectives critical to creating shareholder value.
	 
	 	•	 	Offer competitive cash compensation opportunities to key Kirby employees.
	 
	 	•	 	Award outstanding achievement among employees who can directly affect Kirby’s results.
	 
	 	•	 	Assist Kirby in attracting and retaining high quality employees.
	 
	 	•	 	Reflect both quantitative and qualitative performance factors in actual bonus payouts.

Performance Measures

The performance measures for the Annual Incentive Plan are:

	 	•	 	EBITDA
	 
	 	•	 	Return on Total Capital
	 
	 	•	 	Earnings per share

Annual performance targets will be established for each measure based on Kirby’s projected budget,
and individual bonus payments will be based on a combination of Company performance and individual
performance.

Participants will receive 75% of their award based on Company performance in achieving the three
performance measures, with the remaining 25% based on an assessment of individual performance for
the year.

Each of the performance measures will have equal weight in calculating the bonus payout pool.

4

 

Corporate & Business Group Weighting

The Annual Incentive Plan bonus is calculated at the end of the year based on the
performance of Kirby and the performance of our four Business Groups, Kirby Inland
Marine, Kirby Engine Systems, Dixie Offshore Transportation and Osprey Line, relative
to objectives established at the beginning of the year.

The award for Business Group employees will be primarily tied to Business Group
performance, with a defined portion tied to Company performance.

The award for Corporate employees will be tied entirely to total Kirby performance.

Annual Incentive Plan Calculation

	 	 	 	 	 	 	 	 	 
	 	 	Incentive
	 	 	Bonus Calculation %
	 	 	Kirby	 	 	 	 
	 	 	(Company)	 	Business Group
	All Corporate
	 	 	100	%	 	 	0	%
	Employees
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Business Group Employees
	 	 	30	%	 	 	70	%
	(Inland, Engine Systems, Offshore
and Osprey)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Inland & Engine Systems
	 	 	50	%	 	 	50	%
	Presidents
	 	 	 	 	 	 	 	 

5

 

Individual Bonus Targets

Each participant will be assigned a bonus level which is based on competitive market practices, as
well as the employee’s ability to impact long-term Company performance. Market practices will be
determined using data from either general industry, the marine transportation industry, or the
diesel repair industry, depending upon the individual position being considered. It is the
Company’s intent that salary plus target annual bonus be positioned to provide a competitive market
opportunity for target performance.

6

 

Performance Measures and Weighting

	 	 	 	 	 
	           
              
               Measure	 	Weight
	• EBITDA (Earnings Before Interst, Taxes,
	 	 	33-1/3 	%
	Depreciation and Ammortization)
	 	 	 	 
	 
	 	 	 	 
	• Return on Total Capital (Earnings before
	 	 	33-1/3 	%
	interest and taxes divided by average
	 	 	 	 
	beginning and ending shareholders equity
	 	 	 	 
	plus long-term debt)
	 	 	 	 
	 
	 	 	 	 
	• Earnings per Share
	 	 	33-1/3 	%
	 
	 	 	100	%

Performance Standards & Award Opportunities

	 	 	 	 	 	 	 	 	 	 
	Performance	 	 	 	Relationship to	 	% of Target
	Level	 	Definition	 	Budget	 	Earned
	Threshold

	 	Minimal acceptable

performance for payout
	 	80% of Budget
	 	 	 	50	%
	 
	 	 	 	 	 	 	 	 	 
	Target

	 	Expected performance at a

stretch level
	 	100% of Budget
	 	 	 	100	%
	 
	 	 	 	 	 	 	 	 	 
	Maximum

	 	Outstanding performance
	 	120% of Budget
	 	 	 	200	%

 

			
	 	 	Performance must be at least to Threshold to earn a bonus payment.

7

 

Example Award Calculation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Example Calculation
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Assumed	 	 	percent	 	 	 	 	 	 	Weighted	 
	Performance	 	Performance Standards	 	Actual	 	 	of	 	 	 	 	 	 	Percent	 
	Objectives	 	Below	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Results 	 	 	Target	 	 	 	 	 	 	of Target	 
	Percent of Target	 	Threshold	 	 	Threshold	 	 	Target	 	 	Maximum	 	 	(% Budget	 	 	Award	 	 	Objective	 	 	Award	 
	Award Earned:	 	0%	 	 	50%	 	 	100%	 	 	200%	 	 	Achieved)	 	 	Earned	 	 	Weight	 	 	Earned	 
	EBITDA
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(% Budget Achieved)
	 	 	< 80	%	 	 	80	%	 	 	100	%	 	 	120	%	 	 	90	%	 	 	75	%	 	 	33-1/3	%	 	 	25	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Return on Total
Capital
 (% Budget Achieved)
	 	 	< 80	%	 	 	80	%	 	 	100	%	 	 	120	%	 	 	110	%	 	 	150	%	 	 	33-1/3	%	 	 	50	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Earnings per Share
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(% Budget Achieved)
	 	 	< 80	%	 	 	80	%	 	 	100	%	 	 	120	%	 	 	100	%	 	 	100	%	 	 	33-1/3	%	 	 	33.3	%

	 
	Total Percent of Target Awards Earned for Bonus Pool:
	 	108.3	%

	 	§ 	 	As shown in the exhibit, actual performance on each objective
results in a corresponding percent of target award earned.
	 
	 	§	 	The percents of target award earned for each objective are then
multiplied by the weight for the objective, producing a weighted
percent of target award earned for each objective.
	 
	 	§	 	The weighted percents of target award earned for all objectives
are summed to produce a total percent of target awards earned.
This factor, when multiplied by the sum of target bonuses for
plan participants, equals the bonus funding pool.
	 
	 	§	 	75% of the total pool is paid to participants pro-rata, based on
their individual bonus level and their applicable base salary for
the period.
	 
	 	§	 	The remaining 25% is awarded to participants based on individual
performance.
	 

8

 

Administration

Award Payout

A participant’s Final Award is paid out in cash within 90 days following the end of the Company’s
fiscal year, based on audited financials.

Eligibility Limitation

Unless otherwise provided for as a special circumstance (below), selected participants must be
employed by the Company on the last day of the Performance Period, and on the date bonuses are
actually paid for the respective Performance Period, in order to be eligible to receive a bonus
award.

Special Circumstances

Listed below are guidelines addressing termination and other events. The Committee will have the
sole authority to resolve disputes related to Plan administration. Decisions made by the Committee
will be final and binding on all participants.

New Employees. New employees hired after the beginning of a Performance Period who are selected for
participation in the Plan, will receive prorated awards for the then current Performance Period,
subject to the Termination of Employment restrictions.

Termination of Employment. If employment terminates before the end of the full Performance Period,
or before the date bonuses are actually paid for the respective Performance Period, as a result of
death, normal retirement3, or disability3, the participant (or the
participant’s heirs) will be entitled to receive a prorated award at the end of the Performance
Period, based upon base wages earned while employed during the Performance Period.

If employment terminates prior to the last day of the applicable Performance Period, or
prior to the date bonuses are actually paid for the respective Performance Period, for any
reason other then death, normal retirement3, or disability3, the
participant will be ineligible to receive an award.

 

			
	3	 	Normal retirement or disability as defined for shore based employees in the Company’s
Profit Sharing Plan, and as defined for wheelhouse employees in the Vessel Pension Plan.

9

 

Transfer. A participant who is transferred between business units of the Company will be entitled
to receive a weighted award based upon the time spent at each of the units. The weighted award is
calculated by adding (1) the participant’s prorated award for time spent at the first business
unit, to (2) the participant’s prorated award for time spent at the second business
unit4.

Promotions. A participant who is promoted or reassigned during any Performance Period, and whose
bonus target is subsequently increased or decreased, will be eligible to receive a weighted award.
The award is calculated by adding (1) the prorated award for service before the promotion or
reassignment, to (2) the prorated award for service after the promotion or
reassignment4.

Compensation Committee

The Compensation Committee has the responsibility for the overall governance and administration of
the Plan. In fulfilling its duties, the Committee will be responsible for interpreting the Plan and
will rely on these guidelines in making all determinations that are necessary or advisable for
administration of the Plan.

In administering the Plan the Committee will, on an annual basis:

	 	•	 	Approve the designation of Business Groups within the Company
	 
	 	•	 	Approve the Performance Measures and the Threshold, Target
and Maximum budget performance levels
	 
	 	•	 	Approve linkage for participants to Company and Business
Group performance
	 
	 	•	 	Approve the Bonus Levels for all participants whose salaries
are at or above $100,000

President & CEO

The CEO will have primary responsibility for recommending Plan guidelines to the Committee, and for
carrying out the administrative duties associated with annual award calculations. In addition, the
Compensation Committee may delegate additional administrative duties to the CEO or any Company
officer.

 

			
	4	 	Company and Business Group performance factors are calculated using
performance for the entire Performance Period.

10

 

CFO

The CFO will be responsible for calculating performance under the Plan and recommending adjustments
to the performance objectives. In this capacity, the CFO will:

	 	•	 	Provide annual reports to the Compensation Committee and the CEO
on each Business Group’s performance at the end of the Company’s
fiscal year
	 
	 	•	 	Maintain a financial information system that reports results on an
estimated quarterly and annual basis
	 
	 	•	 	Coordinate with the Company’s auditors to properly recognize any
accounting expense associated with awards under the Plan 
	 
	 	•	 	Provide the VP of Human Resources with the performance results of
each Business Group as well as overall Company performance
	 
	 	•	 	Calculate new Threshold, Target and Maximum performance
objectives as required by the Plan

VP of Human Resources

The VP of Human Resources will have primary responsibility for the day-to-day administration of the
Plan. In this capacity, the VP of Human Resources will:

	 	•	 	Develop and recommend Target Award Guidelines and eligible
participants for each new Performance Period to the CEO for approval
	 
	 	•	 	Coordinate communications with participants, including materials to
facilitate understanding the Plan’s objectives and goals
	 
	 	•	 	Provide quarterly performance updates to Plan participants
	 
	 	•	 	Calculate participants’ awards, using the performance factors provided
by the CFO
	 
	 	•	 	Process paperwork approving individual award payments

Business Group Presidents and Vice Presidents

Business Group Presidents and Vice Presidents will:

	 	•	 	Recommend participants for each Performance Period
	 
	 	•	 	Coordinate with the CFO to determine any significant changes in
business conditions for purposes of reviewing the Threshold, Target
and Maximum performance objectives
	 
	 	•	 	Insure that participants are informed of the actual award earned for
each Performance Period

11exv10w10

 

Exhibit 10.10

STONE ENERGY CORPORATION

AMENDED AND RESTATED

REVISED ANNUAL INCENTIVE COMPENSATION PLAN

- 1 -

 

STONE ENERGY CORPORATION

REVISED ANNUAL INCENTIVE COMPENSATION PLAN

Table of Contents

	 	 	 	 	 
	 

	 	Page

	 
	 	 	 	 
	Purpose

	 	 	3	 
	Definitions

	 	 	3	 
	Administration

	 	 	4	 
	Participation

	 	 	4	 
	Incentive Pool Calculation

	 	 	5	 
	Index Group

	 	 	5	 
	Awards

	 	 	5	 
	Timing of Award Payments

	 	 	6	 
	Duration of Revised Annual Incentive Compensation Plan

	 	 	6	 
	Change-in-Control

	 	 	6	 
	Miscellaneous Plan Provisions

	 	 	6	 
	Effective Date

	 	 	7	 

- 2 -

 

PURPOSE

The Board of Directors (the “Board”) of Stone Energy Corporation (the “Company”) has approved this
Amended and Restated Revised Annual Incentive Compensation Plan (the “Plan”). The purpose of this
Plan is to attract, motivate and retain management and other designated employees by providing a
financial incentive to employment with the Company. The Plan is intended to reward the
participants for exemplary performance in line with increasing shareholder value.

The Plan is an annual plan that coincides with the calendar year. Awards made under the Plan are
in addition to base salary and base salary adjustments to maintain market competitiveness.

The Plan is a nonqualified plan and is, therefore, not subject to various ERISA and Internal
Revenue Service reporting required for certain qualified deferred compensation plans. The Plan is
a discretionary plan and does not require annual distributions.

The Board reserves the right to amend, modify or revoke the Plan in its sole discretion, without
prior notice to participants. No contractual right to any benefit described herein is created or
is intended to be created by this document or any related action of the Board and none should be
inferred from the descriptions of this Plan.

DEFINITIONS

“Award” means the amount received by a Participant due to results achieved under the Plan.

“Compensation Committee” means the Compensation Committee of the Board.

“Participant” means any individual employee of the Company chosen by the Compensation Committee to
participate in the Plan for a given Plan Year.

“Salary” means the base salary of a Participant, excluding all other forms of compensation, such as
benefits, insurance, retirement plan contributions, overtime, or other additional compensation
received in a Plan Year.

“Plan Year” means the calendar year commencing on January 1 and ending on December 31 of each year
beginning with calendar year 2003.

“Shareholder Return Percentage” means the increase or decrease in shareholder value (expressed as a
percentage) measured by price per share at the end of a period compared to the price per share at
the beginning of the period, adjusted for dividends received during the period and adjusted for
stock transactions that in the judgment of the Compensation Committee should be reflected to avoid
distorted results (e.g., stock splits, stock dividends, etc.)

- 3 -

 

“Superior Performance Percentage” means the excess, if any, of the Company’s positive shareholder
return percentage for such year over the index group shareholder return percentage for such year.

“Annual Incentive Pool” means the total dollar amount available to be awarded to the Participants
in the Plan for such Plan Year as determined in the sole discretion of the Compensation Committee
using the criteria set forth in the Plan; however, in no case shall the Annual Incentive Pool
exceed twice the aggregate base salaries of the employees of the Company in a particular Plan Year.

“Actual Awarded Amount” means the total dollar amount actually awarded to the Participants pursuant
to the Plan for a particular Plan Year; the Actual Awarded Amount cannot exceed the Annual
Incentive Pool for such Plan Year.

“Chairman” means the Chairman of the Board.

“CEO” means the Chief Executive Officer of the Company.

“CFO” means the Chief Financial Officer of the Company.

ADMINISTRATION

The Compensation Committee will be responsible for Plan administration. These responsibilities
include, but are not limited to, the following:

	 	(1)	 	Designation of employees to be included in the Plan for each Plan Year;

	 
	 	(2)	 	Reviewing and proposing changes in the composition of the index group; and
	 
	 	(3)	 	Determining the Annual Incentive Pool for each Plan Year based on current economic
and financial conditions prevailing at the time and pursuant to the Plan.

All determinations under the Plan shall be vested in the sole and exclusive discretion of the
Compensation Committee, and the determinations of the Compensation Committee as to such matters
shall be final and conclusive on all persons interested in the Plan.

PARTICIPATION

On an annual basis, the Compensation Committee shall determine those employees of the Company who
will participate in the Plan for a particular Plan Year. Participants who terminate due to death,
disability or retirement on or after attaining age 65 may have their Award for the Plan Year
determined on a pro-rata basis by the Compensation Committee after considering Management’s
recommendations. All other participants who terminate (either voluntarily or involuntarily) during
the applicable Plan Year shall not be entitled to an Award for that Plan Year. Participants who
terminate after the end of the Plan Year but before Award payments are determined or paid may be
entitled to an Award if the Compensation Committee, after considering Management’s recommendations,

- 4 -

 

determines that they or any of them are entitled to an Award in its sole and absolute discretion.

INCENTIVE POOL

The Compensation Committee shall determine the Annual Incentive Pool for each Plan Year using those
criteria that the Compensation Committee shall, its sole discretion, deem applicable from year to
year.

INDEX GROUP

Each year the Compensation Committee shall review and modify, if necessary, companies to include in
the group of companies used to calculate the index group shareholder return percentage to which the
Company’s Shareholder Return Percentage will be compared. It is the intention of the Board that
companies included in this group should be similar to the Company and compete with the Company for
capital. Companies may be excluded at the discretion of the Compensation Committee based on
unusual/nonrecurring events that occur during the Plan Year that could materially distort the index
group shareholder return percentage (e.g., takeover, bankruptcy, etc.). The initial index group
shall be the Company’s peer group as determined by the Board. See Exhibit A.

AWARDS

The Annual Incentive Pool shall be the maximum aggregate amount awarded to the employees of the
Company in any Plan Year, not to exceed twice the aggregate base salaries of the employees of the
Company in a particular Plan Year. The amount actually awarded in a Plan Year (the Actual Awarded
Amount) can be less than the Annual Incentive Pool for that Plan Year. No incentive awards will be
paid pursuant to this Plan if, in the sole discretion of the Compensation Committee, the financial
health of the Company does not warrant such awards regardless whether the formulas used to
determine performance are positive. Allocated amounts that are not awarded shall not be awarded at
any other time under the Plan.

The Compensation Committee shall set and approve the individual awards under the Plan for the
Chairman, the CEO and the CFO by separate resolution. The Compensation Committee may rely on the
recommendations of the CEO and the CFO in setting and approving awards under the Plan for all other
employees of the Company in any Plan Year. No employee of the Company is automatically entitled to
any award under the Plan. The Compensation Committee, the CEO and the CFO may establish objective
criteria for setting individual awards or may use their subjective judgment in setting awards in
their sole discretion.

- 5 -

 

TIMING OF AWARD PAYMENTS

Awards will be paid as soon reasonably practicable after December 31 of each Plan Year, but not
later than March 15 of the succeeding year.

DURATION OF ANNUAL INCENTIVE PLAN

The Plan is an integral part of the Company’s compensation plan. However, the Board may choose to
revise or eliminate the Plan at any time in its sole discretion.

CHANGE-IN-CONTROL

Should a change-in-control occur, the Award computations for the year in which the
change-in-control occurs will be made based on the period ending on the date of the
change-in-control, and the Awards, if any, will be paid as soon as reasonably practicable after the
change-in-control, but in no event later than the earlier of (i) March 15 of the year following the
year in which the change-in-control occurs or (ii) ninety days after the change-in-control.

For purposes of this Plan, “change-in-control” shall mean the occurrence of one or more of the
following events:

	 	(a)	 	the Company shall not be the surviving entity in any merger, consolidation or
other reorganization (or survive only as a subsidiary of an entity other than a
previous wholly-owned subsidiary);
	 
	 	(b)	 	the Company sells, leases or exchanges or agrees to sell, lease or exchange
all or substantially all of its assets to any other person or entity (other than a
wholly-owned subsidiary);
	 
	 	(c)	 	the Company is to be dissolved and/or liquidated;
	 
	 	(d)	 	any person or entity, including a “group” as contemplated by Section 13(d)(3)
of the Securities Exchange Act of 1934, acquires or gains ownership or control
(including, without limitation, the power to vote) of more than fifty percent (50%) of
the outstanding shares of the Company’s voting stock (based upon voting power);
	 
	 	(e)	 	as a result of or in connection with a contested election of directors, the
persons who were directors of the Company before such election shall cease to
constitute a majority of the Board; or
	 
	 	(f)	 	the Company is sold to another corporation, entity, individual or group.

MISCELLANEOUS PLAN PROVISIONS

A Participant’s right and interest in the Plan may not be assigned or transferred except in the
event of the Participant’s death. Unless otherwise noted, the Participant’s beneficiary will be
the same as the group life insurance designation.

- 6 -

 

The Company shall deduct all minimum required withholding for tax purposes from the Awards.

The administrative expense of the Plan will be borne by the Company.

Should a Participant terminate employment (either voluntarily or involuntarily) for causes other
than death, disability or retirement on or after attaining age 65, any Award for that Plan Year
that the Participant may have earned will be forfeited as a result of such termination.

Neither the establishment of the Plan nor the making of awards hereunder shall be deemed to create
a trust. No individual shall have any security or other interest in any of the assets of the
Company, in shares of stock of the Company or otherwise.

An individual shall be considered to be in the employment of the Company as long as he or she
remains the Chairman, an officer and/or an employee of either the Company or any subsidiary.
Nothing in the adoption of the Plan nor the making of awards hereunder shall confer on any
individual the right to continued employment by the Company or a subsidiary or affect in any way
the right of the Company or such subsidiary to terminate his or her employment at any time.

All provisions of the Plan shall be construed in accordance with the laws of Delaware.

EFFECTIVE DATE

This revised Plan, as amended and restated, is effective as of November 14, 2007 and shall continue
until terminated by the Board.

- 7 -

 

EXHIBIT “A”

INDEX GROUP

The “Index Group” or “Peer Group” for 2007 consists of the following companies:

	1.	 	Bois d’Arc Energy
	 
	2.	 	Cabot Oil & Gas
	 
	3.	 	Callon Petroleum
	 
	4.	 	Comstock Resources
	 
	5.	 	Energy Partners, Ltd.
	 
	6.	 	Forest Oil Corporation
	 
	7.	 	Newfield Exploration Company
	 
	8.	 	St. Mary Land & Exploration
	 
	9.	 	Swift Energy
	 
	10.	 	W&T Offshore

- 8 -

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