Document:

exv10w16

Exhibit 10.16

	 	 	 

	

	 	Devon Energy Corporation

ID: 73-1567067 

20 North Broadway 

Oklahoma City, Oklahoma 73102-8260

 

NOTICE OF GRANT OF NONQUALIFIED STOCK OPTIONS

AND AWARD AGREEMENT

 

	 	 	 

	%%FIRST_NAME%-% %%MIDDLE_NAME%-% %%LAST_NAME%-%

	 	Option Number:

	%%OPTION_NUMBER%-%
	 	 
	%%ADDRESS_LINE1%-%

	 	Plan: %%EQUITY_PLAN%-%
	%%ADDRESS_LINE2%-%

	 	ID: %%EMPLOYEE_IDENTIFIER%-%
	%%CITY%-%, %%STATE%-%, %%ZIPCODE%-%
	 	 

 

Effective %%OPTION_DATE%-%, you have been granted a Nonqualified Stock Option to buy
%%TOTAL_SHARES_GRANTED%-% shares of Devon Energy Corporation (the “Company”) Common Stock at
$%%OPTION_PRICE%-% per share. The Nonqualified Stock Option shall expire on
%%EXPIRE_DATE_PERIOD1%-% (the “Expiration Date”).

Shares in each period will become fully vested on the date shown.

	 	 	 	 	 
	Shares	 	Vest Type	 	Full Vest
	%%SHARES_PERIOD1%-%

	 	%%VEST_TYPE_PERIOD1%-%
	 	%%VEST_DATE_PERIOD1%-%
	%%SHARES_PERIOD2%-%

	 	%%VEST_TYPE_PERIOD2%-%
	 	%%VEST_DATE_PERIOD2%-%
	%%SHARES_PERIOD3%-%

	 	%%VEST_TYPE_PERIOD3%-%
	 	%%VEST_DATE_PERIOD3%-%
	%%SHARES_PERIOD4%-%

	 	%%VEST_TYPE_PERIOD4%-%
	 	%%VEST_DATE_PERIOD4%-%
	%%SHARES_PERIOD5%-%

	 	%%VEST_TYPE_PERIOD5%-%
	 	%%VEST_DATE_PERIOD5%-%

 

By accepting this agreement online, you and the Company agree that these options are granted under
and governed by the terms and conditions of the Company’s 2009 Long-Term Incentive Plan and the
Award Agreement, both of which are attached and made a part of this document.

 

 

 

DEVON ENERGY CORPORATION

2009 LONG-TERM INCENTIVE PLAN

EMPLOYEE NONQUALIFIED STOCK OPTION

AWARD AGREEMENT

     THIS NONQUALIFIED STOCK OPTION AWARD AGREEMENT (the “Award Agreement”), is entered into
as of %%OPTION_DATE%-% (the “Date of Grant”), by and between Devon Energy Corporation (the
“Company”) and %%FIRST_NAME%-% %%MIDDLE_NAME%-% %%LAST_NAME%-% (the “Participant”);

WITNESSETH:

     WHEREAS, the Participant is an employee of the Company or a Subsidiary or Affiliated Entity of
the Company, and it is important to the Company that the Participant be encouraged to remain in the
employ of the Company or a Subsidiary or Affiliated Entity of the Company, as applicable; and

     WHEREAS, in recognition of such facts, the Company desires to provide to the Participant a
nonqualified stock option to purchase %%TOTAL_SHARES_GRANTED%-% shares of the Common Stock of the
Company (the “Covered Shares”), as hereinafter provided, pursuant to the “Devon Energy Corporation
2009 Long-Term Incentive Plan” (the “Plan”), a copy of which is attached hereto.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for good
and valuable consideration, the Participant and the Company hereby agree as follows:

     Section 1. Grant of Stock Option. The Company hereby grants to the Participant a
nonqualified stock option that is not intended to qualify under Section 422 of the Code, to
purchase all or any part of the Covered Shares (the “Stock Option”) subject to the terms and
conditions of this Award Agreement and the Plan, which is incorporated herein by reference and made
a part hereof for all purposes. The purchase price for each Covered Share to be purchased
hereunder shall be the exercise price set forth on the Cover Page (the “Exercise Price”).

     Section 2. Times of Exercise of Stock Option.

     (a) The Stock Option shall become fully vested and exercisable on and after the vesting date
for each installment of Covered Shares as described in the following schedule (the “Vesting Date”)
(but only if the Participant’s Date of Termination has not occurred before the Vesting Date):

Vesting Schedule

	 	 	 
	Vesting Date	 	Covered Shares Vesting
	%%VEST_DATE_PERIOD1%-%

	 	%%SHARES_PERIOD1%-%
	%%VEST_DATE_PERIOD2%-%

	 	%%SHARES_PERIOD2%-%
	%%VEST_DATE_PERIOD3%-%

	 	%%SHARES_PERIOD3%-%
	%%VEST_DATE_PERIOD4%-%

	 	%%SHARES_PERIOD4%-%
	%%VEST_DATE_PERIOD5%-%

	 	%%SHARES_PERIOD5%-%

 

 

     (b) The Stock Option shall become fully vested and exercisable upon the occurrence of a Change
of Control Event that occurs (i) prior to the Participant’s Date of Termination or (ii) if the
Participant has retired prior to such Change of Control Event, is Post-Retirement Eligible and no
Non-Compliance Event has occurred, following the Participant’s Date of Termination.

     (c) If (i) the Participant’s Date of Termination occurs under circumstances in which the
Participant is entitled to a severance payment from the Company, a Subsidiary, or an Affiliated
Entity under (A) the Participant’s employment agreement or severance agreement with the Company due
to a termination of the Participant’s employment by the Company without “cause” or by the
Participant for “good reason” in accordance with the Participant’s employment agreement or
severance agreement, or (B) the Devon Energy Corporation Severance Plan, and (ii) the Participant
signs and returns to the Company a release of claims against the Company in a form prepared by the
Company (the “Release”) and the Participant does not revoke the Release prior to the date the
Release becomes effective, then the Stock Option shall become fully vested and exercisable
effective as of the Participant’s Date of Termination. If the Participant fails to sign and return
the Release to the Company or revokes the Release prior to the date the Release becomes effective,
then the unvested portion of the Stock Option shall be forfeited.

     (d) The Stock Option shall become fully vested and exercisable upon the Participant’s Date of
Termination if the Participant’s Date of Termination occurs by reason of the Participant’s death.
The Committee may, in its sole and absolute discretion, elect to vest all or a portion of the
unvested portion of the Stock Option upon the Participant’s Date of Termination if the
Participant’s Date of Termination occurs by reason of disability, Normal Retirement Date, Early
Retirement Date, or other special circumstances (as determined by the Committee).

     (e) Notwithstanding any provision to the contrary in this Award Agreement, if the Participant
is Post-Retirement Eligible, the Participant shall, subject to the satisfaction of the conditions
in Section 9, be eligible to vest, in accordance with the Vesting Schedule above in Section 2(a),
in the installments of the Covered Shares of the Stock Option that remain unvested on the Date of
Termination as follows:

	 	 	 	 	 
	 	 	Percentage of each Unvested Installment
	 	 	of Covered Shares of the Stock Option
	Age at Retirement	 	Eligible to be Earned by the Participant
	 
	54 and earlier
	 	 	0	%
	55
	 	 	60	%
	56
	 	 	65	%
	57
	 	 	70	%
	58
	 	 	75	%
	59
	 	 	80	%
	60 and beyond
	 	 	100	%

     If (i) the Participant is Post-Retirement Eligible, (ii) the death of the Participant occurs
following the Date of Termination, and (iii) no Non-Compliance Event has occurred prior to the date
of the Participant’s death, then any percentages of installments of the Covered Shares of the Stock
Option that remain unvested on the date of the Participant’s

 

 

death but in which the Participant was eligible to vest pursuant to this Section 2(e) shall
become fully vested and exercisable upon the Participant’s death.

     Nothing in this Award Agreement shall be construed to affect the application of Section 12.5
of the Plan (relating to Change of Control), to the extent such Section would otherwise be
applicable.

     Section 3. Term of Stock Option. The Stock Option shall expire and cease to be
exercisable on the earliest to occur of:

     (a) The Expiration Date set forth on the Cover Page.

     (b) If the Participant’s Date of Termination occurs by reason of death, the three-year
anniversary of such Date of Termination.

     (c) If the Participant’s Date of Termination occurs by reason of disability, and Section (d)
below (relating to termination or after Normal Retirement Date) does not apply, the one-year
anniversary of such Date of Termination.

     (d) If the Participant’s Date of Termination occurs by reason of Participant’s retirement and
the Participant is Post-Retirement Eligible, the Expiration Date of the Stock Option; provided,
however, if a Non-Compliance Event occurs following the Date of Termination, the Stock Option shall
cease to be exercisable on the one-year anniversary of such Non-Compliance Event.

     (e) If (i) the Participant is Post-Retirement Eligible, (ii) the death of the Participant
occurs following the Date of Termination, (iii) there are percentages of installments of the
Covered Shares of the Stock Option that remain unvested as of the date of the Participant’s death
but in which the Participant was eligible to vest pursuant to Section 2(e), and (iv) no
Non-Compliance Event has occurred prior to the date of the Participant’s death, the three-year
anniversary of the date of the Participant’s death.

     (f) If (i) the Participant’s Date of Termination occurs by reason of the Participant’s
retirement, (ii) the Date of Termination occurs on or after the Participant’s Normal Retirement
Date and (iii) the Participant is not Post-Retirement Eligible, the three-year anniversary of such
Date of Termination (or such later date as may be permitted by the Committee).

     (g) If the Participant’s Date of Termination occurs under circumstances in which the
Participant is entitled to a severance payment from the Company, a Subsidiary of the Company, or an
Affiliated Entity under an employment agreement or severance agreement with the Company, the last
day of the Severance Period. The “Severance Period” shall be the longer of:

(i) the period beginning on the Date of Termination and continuing through the end
of the period during which such severance payments are paid to the Participant; or

(ii) the period described in the following clause (B), if the amount of the
Participant’s severance payment is determined in whole or in part as being equal to
the product of (A) the Participant’s salary rate, multiplied by (B) a period
over which such amount would be computed.

 

 

     (h) If the Participant’s Date of Termination occurs and none of Sections (b), (c), (d), (e),
(f) and (g) are applicable, the three month anniversary of such Date of Termination.

     Section 4. Nontransferability of Stock Option. The Stock Option may be exercised
during the lifetime of the Participant only by the Participant. Without limiting the generality of
the previous sentence, the Stock Option shall not be assigned, transferred (except as provided
above), pledged or hypothecated in any way whatsoever, shall not be assigned by operation of law,
and shall not be subject to execution, attachment or similar process. Any attempted assignment,
transfer, pledge, hypothecation or other disposition of the Stock Option contrary to the provisions
hereof, shall be null and void and without effect. However, in the event of a Participant’s death,
the Stock Option may be transferred in accordance with the provisions of a Participant’s will, the
applicable laws of descent and distribution, or a beneficiary designation that is in a form
approved by the Committee.

     Section 5. Employment. So long as the Participant shall continue to be an employee
of the Company or one or more of the Subsidiaries or Affiliated Entities of the Company, the Stock
Option shall not be affected by any change of duties or position. Nothing in the Plan or in this
Award Agreement shall confer upon the Participant any right to continue in the employ of the
Company or any of its Subsidiaries or Affiliated Entities, or interfere in any way with the right
to terminate the Participant’s employment at any time.

     Section 6. Method of Exercising Stock Option.

     (a) Procedures for Exercise. The Stock Option may be exercised prior to the Expiration Date
by providing written notice in the form prescribed by the Company to the Secretary of the Company
or following the electronic exercise procedures adopted by the Company. The written notice shall
state the election to exercise the Stock Option, the number of Covered Shares to be purchased upon
exercise, the form of payment, and shall be signed by the person exercising the Stock Option.

     (b) Form of Payment. Payment of the full Exercise Price for the Covered Shares purchased
under this Award Agreement shall accompany the Participant’s notice of exercise, together with full
payment of applicable withholding taxes, if any. Payment shall be made (i) in cash or by check,
draft or money order payable to the order of the Company; (ii) by delivering shares of Common Stock
having a Fair Market Value on the date of payment equal to the amount of the Exercise Price, but
only to the extent such form of payment would not result in a compensation expense to the Company
for financial accounting purposes with respect to the shares of Common Stock used to pay the
Exercise Price unless otherwise determined by the Committee; or (iii) a combination of the
foregoing.

     (c) Further Information. In the event the Stock Option is exercised, pursuant to the
foregoing provisions of this Section 6, by any person other than the Participant due to the
Participant’s death, notice shall also be accompanied by appropriate proof of such person’s right
to exercise the Stock Option. The notice so required shall be given electronically or by personal
delivery to the Secretary of the Company or by registered or certified mail, addressed to the
Company at 20 North Broadway, Oklahoma City, Oklahoma 73102-8260, Attention: Secretary, and it
shall be deemed to have been given when it is delivered or when it is deposited in the United
States mail in an envelope addressed to the Company, as aforesaid, properly stamped for delivery as
a registered or certified letter.

     Section 7. Securities Law Restrictions. The Stock Option shall be exercised and
Common Stock issued only upon compliance with the Securities Act of 1933, as amended (the “Act”),
and any other applicable securities law, or pursuant to an exemption therefrom. If

 

 

deemed necessary by the Company to comply with the Act or any applicable laws or regulations
relating to the sale of securities, the Participant, at the time of exercise and as a condition
imposed by the Company, shall represent, warrant and agree that the Covered Shares subject to the
Stock Option are being purchased for investment and not with any present intention to resell the
same and without a view to distribution, and the Participant shall, upon the request of the
Company, execute and deliver to the Company an agreement to such effect.

     Section 8. Notices. All notices or other communications relating to the Plan and
this Award Agreement as it relates to the Participant shall be in writing and shall be delivered
electronically, personally or mailed (U.S. Mail) by the Company to the Participant at the then
current address as maintained by the Company or such other address as the Participant may advise
the Company in writing.

     Section 9. Conditions to Post-Retirement Vesting.

     (a) Notice of and Conditions to Post-Retirement Vesting. If the Participant is
Post-Retirement Eligible, the Company shall, within a reasonable period of time prior to the
Participant’s Date of Termination, notify the Participant that the Participant has the right,
pursuant to this Section 9(a), to continue to vest following the Date of Termination in any
unvested installments of Covered Shares of the Stock Option (each such unvested installment, an
“Installment”). The Participant shall have the right to vest in such Installments of Covered
Shares of the Stock Option provided that the Participant executes and delivers to the Company, with
respect to each such Installment, the following documentation: (i) a non-disclosure letter
agreement, in the form attached as Exhibit A, (a “Non-Disclosure Agreement”) on or before January 1
of the year in which such Installment vests pursuant to the Vesting Schedule (or, with respect to
the calendar year in which the Date of Termination occurs, on or before the Date of Termination),
and (ii) a compliance certificate, in the form attached as Exhibit B, (a “Compliance Certificate”)
indicating the Participant’s full compliance with the Non-Disclosure Agreement on or before
November 1 of the year in which such Installment vests pursuant to the Vesting Schedule.

     (b) Consequences of Failure to Satisfy Vesting Conditions. In the event that, with respect to
any given Installment, the Participant fails to deliver either the respective Non-Disclosure
Agreement or Compliance Certificate for such Installment on or before the date required for the
delivery of such document (such failure, a “Non-Compliance Event”), the Participant shall not be
entitled to vest in any unvested Installments that would vest from and after the date of the
Non-Compliance Event and the Company shall be authorized to take any and all such actions as are
necessary to cause such unvested Stock Options to not vest and to terminate. The only remedy of
the Company for failure to deliver a Non-Disclosure Agreement or a Compliance Certificate shall be
the failure to vest in, and cancellation of, any unvested Installments then held by the
Participant.

     Section 10. Definitions. Words, terms, or phrases used in this Agreement shall have
the meanings set forth in this Section 10. Capitalized terms used in this Award Agreement but not
defined herein shall have the meaning designated in the Plan.

     (a) “Act” has the meaning set forth in Section 7.

     (b) “Award Agreement” has the meaning set forth in the preamble.

     (c) “Code” means Internal Revenue Code of 1986, as amended.

 

 

     (d) “Company” has the meaning set forth on the Cover Page.

     (e) “Compliance Certificate” has the meaning set forth in Section 9(a).

     (f) “Covered Shares” has the meaning set forth in the preamble.

     (g) “Date of Grant” has the meaning set forth in the preamble.

     (h) “Date of Termination” means the first day occurring on or after the Date of Grant on which
the Participant is not employed by the Company, a Subsidiary, or an Affiliated Entity, regardless
of the reason for the termination of employment; provided, however, that a termination of
employment shall not be deemed to occur by reason of a transfer of the Participant between the
Company, a Subsidiary, and an Affiliated Entity or between two Subsidiaries or two Affiliated
Entities. The Participant’s employment shall not be considered terminated while the Participant is
on a leave of absence from the Company, a Subsidiary, or an Affiliated Entity approved by the
Participant’s employer pursuant to Company policies. If, as a result of a sale or other
transaction, the Participant’s employer ceases to be either a Subsidiary or an Affiliated Entity
and the Participant is not, at the end of the 30-day period following the transaction, employed by
the Company or an entity that is then a Subsidiary or an Affiliated Entity, then the date of the
occurrence of such transaction shall be treated as the Participant’s Date of Termination.

     (i) “Early Retirement Date” means, with respect to the Participant, the first day of a month
that occurs on or after the date the Participant (i) attains age 55 and (ii) earns at least 10
Years of Service.

     (j) “Exercise Price” has the meaning set forth in Section 1.

     (k) “Expiration Date” has the meaning set forth on the Cover Page.

     (l) “Installment” has the meaning set forth in Section 9(a).

     (m) “Non-Compliance Event” has the meaning set forth in Section 9(b).

     (n) “Non-Disclosure Agreement” has the meaning set forth in Section 9(a).

     (o) “Normal Retirement Date” means, with respect to the Participant, the first day of a month
that occurs on or after the date the Participant attains age 65.

     (p) “Participant” has the meaning set forth in the preamble.

     (q) “Plan” has the meaning set forth in the preamble.

     (r) “Post-Retirement Eligible” means the Participant’s Date of Termination occurs (i) by
reason of the Participant’s retirement and (ii) on or after the Participant’s Early Retirement
Date.

     (s) “Stock Option” has the meaning set forth in Section 1.

     (t) “Vesting Date” has the meaning set forth in Section 2.

     (u) “Year of Service” means a calendar year in which the Participant is employed with the
Company, a Subsidiary or Affiliated Entity for at least nine months of a calendar

 

 

year. When calculating Years of Service hereunder, Participant’s first hire date with the
Company, a Subsidiary or Affiliated Entity shall be used.

	 	 	 

	“COMPANY”

	 	DEVON ENERGY CORPORATION
	 

	 	a Delaware corporation
	 
	 	 
	“PARTICIPANT”

	 	%%FIRST_NAME%-% %%MIDDLE_NAME%-% %%LAST_NAME%-%
	 

	 	%%ADDRESS_LINE1%-%
	 

	 	%%ADDRESS_LINE2%-%
	 

	 	%%CITY%-%, %%STATE%-%, %%ZIPCODE%-%
	 

	 	ID: %%EMPLOYEE_IDENTIFIER%-%

 

 

EXHIBIT A

Form of Non-Disclosure Agreement

[Insert Date]

Devon Energy Corporation

20 North Broadway

Oklahoma City, OK 73102

          Re: Non-Disclosure Agreement

Ladies and Gentlemen:

     This letter agreement is entered between Devon Energy Corporation (together with its
subsidiaries and affiliates, the “Company”) and the undersigned (the “Participant”) in
connection with that certain Nonqualified Stock Option Award Agreement (the “Agreement”) dated
_______________, 20__ between the Company and the Participant. All capitalized terms used in
this letter agreement shall have the same meaning ascribed to them in the Agreement unless
specifically denoted otherwise.

     The Participant acknowledges that, during the course of and in connection with the
employment relationship between the Participant and the Company, the Company provided and the
Participant accepted access to the Company’s trade secrets and confidential and proprietary
information, which included, without limitation, information pertaining to the Company’s
finances, oil and gas properties and prospects, compensation structures, business and litigation
strategies and future business plans and other information or material that is of special and
unique value to the Company and that the Company maintains as confidential and does not disclose
to the general public, whether through its annual report and/or filings with the Securities and
Exchange Commission or otherwise (the “Confidential Information”).

     The Participant acknowledges that his position with the Company was one of trust and
confidence because of the access to the Confidential Information, requiring the Participant’s
best efforts and utmost diligence to protect and maintain the confidentiality of the
Confidential Information. Unless required by the Company or with the Company’s express written
consent, the Participant will not, during the term of this letter agreement, directly or
indirectly, disclose to others or use for his own benefit or the benefit of another any of the
Confidential Information, whether or not the Confidential Information is acquired, learned,
attained or developed by the Participant alone or in conjunction with others.

     The Participant agrees that, due to his access to the Confidential Information, the
Participant would inevitably use and/or disclose that Confidential Information in breach of his
confidentiality and non-disclosure obligations if the Participant worked in certain capacities
or engaged in certain activities for a period of time following his employment with the Company,
specifically in a position that involves (i) responsibility and decision-making authority or
input at the executive level regarding any subject or responsibility, (ii) decision-making
responsibility or input at any management level in the Participant’s individual area of
assignment with the Company, or (iii) responsibility and decision-making

 

 

authority or input that otherwise allows the use of the Confidential Information
(collectively referred to as the “Restricted Occupation”). Therefore, except with the prior
written consent of the Company, during the term of this letter agreement, the Participant agrees
not to be employed by, consult for or otherwise act on behalf of any person or entity in any
capacity in which he would be involved, directly or indirectly, in a Restricted Occupation. The
Participant acknowledges that this commitment is intended to protect the Confidential
Information and is not intended to be applied or interpreted as a covenant against competition.

     The Participant further agrees that, during the term of this letter agreement, the
Participant will not, directly or indirectly on behalf of a person or entity or otherwise, (i)
solicit any of the established customers of the Company or attempt to induce any of the
established customers of the Company to cease doing business with the Company, or (ii) solicit
any of the employees of the Company to cease employment with the Company.

     This letter agreement shall become effective upon execution by the Participant and the
Company and shall terminate on December 31, 20__. [NOTE: Insert date that is the end of the
calendar year of the letter agreement.]

     If you agree to the above terms and conditions, please execute a copy of this letter
agreement below and return a copy to me.

	 	 	 	 	 

	 

	 	“PARTICIPANT”	 	 
	 
	 
	 	 	 	 
	 

	 	 

[Name of Participant]
	 	 

THE UNDERSIGNED HEREBY ACCEPTS AND AGREES TO THE TERMS SET FORTH ABOVE AS OF THIS ____ DAY OF
____________, ___.

	 	 	 	 	 	 	 

	 	 	“COMPANY”	 	 
	 
	 	 	 	 	 	 
	 	 	DEVON ENERGY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

 

EXHIBIT B

Form of Compliance Certificate

     I hereby certify that I am in full compliance with the covenants contained in that certain
letter agreement (the “Agreement”) dated as of ____________, ____ between Devon Energy Corporation
and me and have been in full compliance with such covenants at all times during the period ending
October 31, ____.

	 	 	 	 	 

	 
	 

	 	 

[Name of Participant]
	 	 

Dated:exv10w18

Exhibit 10.18

	 	 	 

	

	 	Devon Energy Corporation

ID: 73-1567067

20 North Broadway

Oklahoma City, Oklahoma 73102-8260

 

NOTICE OF GRANT OF RESTRICTED STOCK AWARD

AND AWARD AGREEMENT

 

	 	 	 

	%%FIRST_NAME%-%
%%MIDDLE_NAME%-% %%LAST_NAME%-%Award Number:
 %%OPTION_NUMBER%-%
	%%ADDRESS_LINE_1%-%

	 	Plan: %%EQUITY_PLAN%-%
	%%ADDRESS_LINE_2%-%

	 	ID: %%EMPLOYEE_IDENTIFIER%-%
	%%CITY%-%, %%STATE%-%, %%ZIPCODE%-%
	 	 

 

Effective «%%OPTION_DATE%-%, you have been granted a Restricted Stock Award of
%%TOTAL_SHARES_GRANTED%-% shares of Devon Energy Corporation (the “Company”) Common Stock. These
shares are restricted until the vesting date(s) shown below.

The award will vest in increments on the date(s) shown.

	 	 	 
	Shares	 	Full Vest
	%%SHARES_PERIOD1%-%

	 	%%VEST_DATE_PERIOD1%-%
	%%SHARES_PERIOD2%-%

	 	%%VEST_DATE_PERIOD2%-%
	%%SHARES_PERIOD3%-%

	 	%%VEST_DATE_PERIOD3%-%
	%%SHARES_PERIOD4%-%

	 	%%VEST_DATE_PERIOD4%-%

 

By accepting this agreement online, you and the Company agree that this award is granted under and
governed by the terms and conditions of the Company’s 2009 Long-Term Incentive Plan and the Award
Agreement, both of which are attached and made a part of this document.

 

 

 

DEVON ENERGY CORPORATION

2009 LONG-TERM INCENTIVE PLAN

RESTRICTED STOCK AWARD AGREEMENT

          THIS RESTRICTED STOCK AWARD AGREEMENT (the “Award Agreement”) is entered into as of
%%OPTION_DATE%-% (the “Date of Grant”), by and between Devon Energy Corporation (the “Company”) and
%%FIRST_NAME%-% %%MIDDLE_NAME%-% %%LAST_NAME%-% (the “Participant”);

W I T N E S S E T H:

          WHEREAS, the Company has previously adopted the “Devon Energy Corporation 2009 Long-Term
Incentive Plan” (the “Plan”); and

          WHEREAS, in connection with the Participant’s employment with the Company, the Company desires
to award to the Participant %%TOTAL_SHARES_GRANTED%-% shares of the Company’s Common Stock under
the Plan subject to the terms and conditions of this Award Agreement; and

          NOW, THEREFORE, in consideration of the premises and the mutual promises and covenants herein
contained, the Participant and the Company agree as follows:

          1. The Plan. The Plan, a copy of which is attached hereto, is hereby incorporated by
reference herein and made a part hereof for all purposes, and when taken with this Award Agreement
shall govern the rights of the Participant and the Company with respect to the Award.

          2. Grant of Award. The Company hereby grants to the Participant an award (the
“Award”) of %%TOTAL_SHARES_GRANTED%-% shares of the Company’s Common Stock (the “Restricted
Stock”), on the terms and conditions set forth herein and in the Plan.

          3. Terms of Award.

               (a) Escrow of Shares. A certificate or book-entry registration representing the
Restricted Stock shall be issued in the name of the Participant and shall be escrowed with the
Secretary of the Company (the “Escrow Agent”) subject to removal of the restrictions placed thereon
or forfeiture pursuant to the terms of this Award Agreement.

               
(b) Vesting. Except as provided in this Section 3, if the Participant’s Date of
Termination has not occurred as of the vesting dates specified below (the “Vesting Dates”), then,
the Participant shall be entitled, subject to the applicable provisions of the Plan and this Award
Agreement having been satisfied, to receive on or within a reasonable time after the applicable
Vesting Dates the number of shares of Common Stock as described in the following schedule. Once
vested pursuant to the terms of this Award Agreement, the Restricted Stock shall be deemed “Vested
Stock.”

Vesting Schedule

	 	 	 
	Vesting Dates	 	Shares Vesting
	%%VEST_DATE_PERIOD1%-%

	 	%%SHARES_PERIOD1%-%
	%%VEST_DATE_PERIOD2%-%

	 	%%SHARES_PERIOD2%-%
	%%VEST_DATE_PERIOD3%-%

	 	%%SHARES_PERIOD3%-%
	%%VEST_DATE_PERIOD4%-%

	 	%%SHARES_PERIOD4%-%

 

 

The Participant shall forfeit the unvested portion of the Award (including the underlying
Restricted Stock and Accrued Dividends) upon the occurrence of the Participant’s Date of
Termination unless the Award becomes vested under the circumstances described in paragraphs (i),
(ii), (iii) or (iv) below.

               (i) The Restricted Stock shall become fully vested upon the occurrence of a Change of Control
Event that occurs (i) prior to the Participant’s Date of Termination or (ii) if the Participant has
retired prior to such Change of Control Event, is Post-Retirement Eligible and no Non-Compliance
Event has occurred, following the Participant’s Date of Termination.

               (ii) If (A) the Participant’s Date of Termination occurs under circumstances in which
the
Participant is entitled to a severance payment from the Company, a Subsidiary, or an Affiliated
Entity under (1) the Participant’s employment agreement or severance agreement with the Company due
to a termination of the Participant’s employment by the Company without “cause” or by the
Participant for “good reason” in accordance with the Participant’s employment agreement or
severance agreement or (2) the Devon Energy Corporation Severance Plan and (B) the Participant
signs and returns to the Company a release of claims against the Company in a form prepared by the
Company (the “Release”), the Restricted Stock shall become fully vested upon the date the Release
becomes effective and the Restricted Stock shall be released within a reasonable time after the
applicable Vesting Date. If the Participant fails to sign and return the Release to the Company or
revokes the Release prior to the date the Release becomes effective, the unvested shares of
Restricted Stock subject to this Award Agreement shall be forfeited.

               (iii) The Restricted Stock shall become fully vested upon the Participant’s Date of
Termination if the Participant’s Date of Termination occurs by reason of the Participant’s death.
The Committee may in its sole and absolute discretion, elect to vest all or a portion of the
unvested Restricted Stock upon the Participant’s Date of Termination if the Participant’s Date of
Termination occurs by reason of disability, Normal Retirement Date, Early Retirement Date, or other
special circumstances (as determined by the Committee).

               (iv) Notwithstanding any provision to the contrary in this Agreement, if the Participant is
Post-Retirement Eligible, the Participant shall, subject to the satisfaction of the conditions in
Section 14, be eligible to vest in accordance with the Vesting Schedule above in Section 3(b), in
the installments of Restricted Stock that remain unvested on the Date of Termination as follows:

	 	 	 	 	 
	 	 	Percentage of each Unvested Installment of

	Age at Retirement	 	Restricted Stock Eligible to be Earned by the 
Participant
	54 and earlier
	 	 	0	%
	55
	 	 	60	%
	56
	 	 	65	%
	57
	 	 	70	%
	58
	 	 	75	%
	59
	 	 	80	%
	60 and beyond
	 	 	100	%

     If (i) the Participant is Post-Retirement Eligible, (ii) the death of the Participant occurs
following the Date of Termination, and (iii) no Non-Compliance Event has occurred prior to the date
of the Participant’s death, then any percentages of installments of Restricted Stock that remain
unvested on the date of the Participant’s death but in which the Participant was eligible to vest
pursuant to this Section 3(b)(iv) shall become fully vested upon the Participant’s death.

 

 

               (c) Voting Rights and Dividends. The Participant shall have all of the voting rights
attributable to the shares of Restricted Stock. Regular quarterly cash dividends declared and paid
by the Company with respect to the shares of Restricted Stock shall be paid to the Participant.
Any extraordinary dividends declared and paid by the Company with respect to shares of Restricted
Stock (the “Accrued Dividends”) shall not be paid to the Participant until such Restricted Stock
becomes Vested Stock. Accrued Dividends shall be held by the Company as a general obligation and
paid to the Participant at the time the underlying Restricted Stock becomes Vested Stock.

               (d) Vested Stock — Removal of Restrictions. Upon Restricted Stock becoming Vested
Stock, all restrictions shall be removed from the certificates or book-entry registrations and the
Secretary of the Company shall deliver to the Participant certificates or a Direct Registration
Statement for the book-entry registration representing such Vested Stock free and clear of all
restrictions, except for any applicable securities laws restrictions, together with a check in the
amount of all Accrued Dividends attributed to such Vested Stock without interest thereon.

          4. Legends. The shares of Restricted Stock which are the subject of this Award
Agreement shall be subject to the following legend:

“THE SHARES OF STOCK EVIDENCED BY THIS CERTIFICATE OR BOOK-ENTRY REGISTRATION ARE
SUBJECT TO AND ARE TRANSFERABLE ONLY IN ACCORDANCE WITH THAT CERTAIN AWARD AGREEMENT
DATED %%OPTION_DATE%-% FOR THE DEVON ENERGY CORPORATION 2009 LONG-TERM INCENTIVE
PLAN. ANY ATTEMPTED TRANSFER OF THE SHARES OF STOCK EVIDENCED BY THIS CERTIFICATE
OR BOOK-ENTRY REGISTRATION IN VIOLATION OF SUCH AWARD AGREEMENT SHALL BE NULL AND
VOID AND WITHOUT EFFECT. A COPY OF THE AWARD AGREEMENT MAY BE OBTAINED FROM THE
SECRETARY OF DEVON ENERGY CORPORATION.”

          5. Delivery of Forfeited Shares. The Participant authorizes the Secretary to deliver
to the Company any and all shares of Restricted Stock that are forfeited under the provisions of
this Award Agreement. The Participant further authorizes the Company to hold as a general
obligation of the Company any Accrued Dividends and to pay the Accrued Dividends to the Participant
at the time the underlying Restricted Stock becomes Vested Stock.

          6. Employment. Nothing in the Plan or in this Award Agreement shall confer upon the
Participant any right to continue in the employ of the Company or any of its Subsidiaries or
Affiliated Entities, or interfere in any way with the right to terminate the Participant’s
employment at any time.

          7. Nontransferability of Award. The Participant shall not have the right to sell,
assign, transfer, convey, dispose, pledge, hypothecate, burden, encumber or charge any Restricted
Stock or any interest therein in any manner whatsoever.

          8. Notices. All notices or other communications relating to the Plan and this Award
Agreement as it relates to the Participant shall be in writing and shall be delivered
electronically, personally or mailed (U.S. mail) by the Company to the Participant at the then
current address as maintained by the Company or such other address as the Participant may advise
the Company in writing.

          9. Binding Effect and Governing Law. This Award Agreement shall be (i) binding upon
and inure to the benefit of the parties hereto and their respective heirs, successors and assigns
except as may be limited by the Plan, and (ii) governed and construed under the laws of the State
of Oklahoma.

 

 

          10. Withholding. The Company and the Participant shall comply with all federal and
state laws and regulations respecting the required withholding, deposit and payment of any income,
employment or other taxes relating to the Award (including Accrued Dividends). The Company shall
withhold the employer’s minimum statutory withholding based upon minimum statutory withholding
rates for federal and state purposes, including payroll taxes, that are applicable to such
supplemental taxable income. Any payment of required withholding taxes by the Participant in the
form of Common Stock shall not be permitted if it would result in an accounting charge with respect
to such shares used to pay such taxes unless otherwise approved by the Committee.

          11. Award Subject to Claims of Creditors. The Participant shall not have any interest
in any particular assets of the Company, its parent, if applicable, or any Subsidiary or Affiliated
Entity by reason of the right to earn an Award (including Accrued Dividends) under the Plan and
this Award Agreement, and the Participant or any other person shall have only the rights of a
general unsecured creditor of the Company, its parent, if applicable, or a Subsidiary or Affiliated
Entity with respect to any rights under the Plan or this Award Agreement.

          12. Captions. The captions of specific provisions of this Award Agreement are for
convenience and reference only, and in no way define, describe, extend or limit the scope of this
Award Agreement or the intent of any provision hereof.

          13. Counterparts. This Award Agreement may be executed in any number of identical
counterparts, each of which shall be deemed an original for all purposes, but all of which taken
together shall form one agreement.

          14. Conditions to Post-Retirement Vesting.

               (a) Notice of and Conditions to Post-Retirement Vesting. If the Participant is
Post-Retirement Eligible, the Company shall, within a reasonable period of time prior to the
Participant’s Date of Termination, notify the Participant that the Participant has the right,
pursuant to this Section 14(a), to continue to vest following the Date of Termination in any
unvested installments of Restricted Stock (each such unvested installment, an “Installment”). The
Participant shall have the right to vest in such Installments of Restricted Stock, provided that
the Participant executes and delivers to the Company, with respect to each such Installment, the
following documentation: (i) a non-disclosure letter agreement, in the form attached as Exhibit A,
(a “Non-Disclosure Agreement”) on or before January 1 of the year in which such Installment vests
pursuant to the Vesting Schedule (or, with respect to the calendar year in which the Date of
Termination occurs, on or before the Date of Termination), and (ii) a compliance certificate, in
the form attached as Exhibit B, (a “Compliance Certificate”) indicating the Participant’s full
compliance with the Non-Disclosure Agreement on or before November 1 of the year in which such
Installment vests pursuant to the Vesting Schedule.

               (b) Consequences of Failure to Satisfy Vesting Conditions. In the event that, with
respect to any given Installment, the Participant fails to deliver either the respective
Non-Disclosure Agreement or Compliance Certificate for such Installment on or before the date
required for the delivery of such document (such failure, a “Non-Compliance Event”), the
Participant shall not be entitled to vest in any unvested Installments that would vest from and
after the date of the Non-Compliance Event and the Company shall be authorized to take any and all
such actions as are necessary to cause such unvested Restricted Stock to not vest and to terminate.
The only remedy of the Company for failure to deliver a Non-Disclosure Agreement or a Compliance
Certificate shall be the failure to vest in, and cancellation of, any unvested Installments then
held by the Participant.

 

 

          15. Definitions. Words, terms or phrases used in this Award Agreement shall have the
meaning set forth in this Section 15. Capitalized terms used in this Award Agreement but not
defined herein shall have the meaning designated in the Plan.

          (a) “Accrued Dividends” has the meaning set forth in Section 3(c).

          (b) “Award” has the meaning set forth in Section 2.

          (c) “Award Agreement” has the meaning set forth in the preamble.

          (d) “Company has the meaning set forth on the Cover Page.

          (e) “Compliance Certificate” has the meaning set forth in Section 14(a).

          (f) “Date of Grant” has the meaning set forth in the preamble.

          (g) “Date of Termination” means the first day occurring on or after the Date of Grant on which
the Participant is not employed by the Company, a Subsidiary, or an Affiliated Entity regardless of
the reason for the termination of employment; provided, however, that a termination of employment
shall not be deemed to occur by reason of a transfer of the Participant between the Company, a
Subsidiary, and an Affiliated Entity or between two Subsidiaries or two Affiliated Entities. The
Participant’s employment shall not be considered terminated while the Participant is on a leave of
absence from the Company, a Subsidiary, or an Affiliated Entity approved by the Participant’s
employer pursuant to Company policies. If, as a result of a sale or other transaction, the
Participant’s employer ceases to be either a Subsidiary or an Affiliated Entity, and the
Participant is not, at the end of the 30-day period following the transaction, employed by the
Company or an entity that is then a Subsidiary or Affiliated Entity, then the date of occurrence of
such transaction shall be treated as the Participant’s Date of Termination.

          (h) “Early Retirement Date” means, with respect to the Participant, the first day of a month
that occurs on or after the date the Participant (i) attains age 55 and (ii) earns at least 10
Years of Service.

          (i) “Escrow Agent” has the meaning set forth in Section 3(a).

          (j) “Installment” has the meaning set forth in Section 14(a).

          (k) “Non-Compliance Event” has the meaning set forth in Section 14(b).

          (l) “Non-Disclosure Agreement” has the meaning set forth in Section 14(a).

          (m) “Normal Retirement Date” means, with respect to the Participant, the first day of a month
that occurs on or after the date the Participant attains age 65.

          (n) “Participant” has the meaning set forth in the preamble.

          (o) “Plan” has the meaning set forth in the preamble.

          (p) “Post-Retirement Eligible” means the Participant’s Date of Termination occurs (i) by
reason of the Participant’s retirement and (ii) on or after the Participant’s Early Retirement
Date.

          (q) “Restricted Stock” has the meaning set forth in Section 2.

          (r) “Vested Stock” has the meaning set forth in Section 3(b).

 

 

          (s) “Vesting Date” has the meaning set forth in Section 3(b).

          (t) “Year of Service” means a calendar year in which the Participant is employed with the
Company, a Subsidiary or Affiliated Entity for at least nine months of a calendar year. When
calculating Years of Service hereunder, Participant’s first hire date with the Company, a
Subsidiary or Affiliated Entity shall be used.

	 	 	 

	“COMPANY”

	 	DEVON ENERGY CORPORATION
	 

	 	a Delaware corporation
	 
	 	 
	“PARTICIPANT”

	 	%%FIRST_NAME%-% %%MIDDLE_NAME%-% %%LAST_NAME%-% 
	 

	 	%%ADDRESS_LINE1%-%
	 

	 	%%ADDRESS_LINE2%-%
	 

	 	%%CITY%-%, %%STATE%-%, %%ZIPECODE%-%
	 

	 	ID «ID»

 

 

EXHIBIT A

Form of Non-Disclosure Agreement

[Insert Date]

Devon Energy Corporation

20 North Broadway

Oklahoma City, OK 73102

			
	           Re:	 	Non-Disclosure Agreement

Ladies and Gentlemen:

     This letter agreement is entered between Devon Energy Corporation (together with its
subsidiaries and affiliates, the “Company”) and the undersigned (the “Participant”) in
connection with that certain Amendment to Restricted Stock Award Agreements (the
“Agreement”) dated _______________, 20___ between the Company and the Participant. All
capitalized terms used in this letter agreement shall have the same meaning ascribed to
them in the Agreement unless specifically denoted otherwise.

     The Participant acknowledges that, during the course of and in connection with the
employment relationship between the Participant and the Company, the Company provided and
the Participant accepted access to the Company’s trade secrets and confidential and
proprietary information, which included, without limitation, information pertaining to the
Company’s finances, oil and gas properties and prospects, compensation structures, business
and litigation strategies and future business plans and other information or material that
is of special and unique value to the Company and that the Company maintains as
confidential and does not disclose to the general public, whether through its annual report
and/or filings with the Securities and Exchange Commission or otherwise (the “Confidential
Information”).

     The Participant acknowledges that his position with the Company was one of trust and
confidence because of the access to the Confidential Information, requiring the
Participant’s best efforts and utmost diligence to protect and maintain the confidentiality
of the Confidential Information. Unless required by the Company or with the Company’s
express written consent, the Participant will not, during the term of this letter
agreement, directly or indirectly, disclose to others or use for his own benefit or the
benefit of another any of the Confidential Information, whether or not the Confidential
Information is acquired, learned, attained or developed by the Participant alone or in
conjunction with others.

     The Participant agrees that, due to his access to the Confidential Information, the
Participant would inevitably use and/or disclose that Confidential Information in breach of
his confidentiality and non-disclosure obligations if the Participant worked in certain
capacities or engaged in certain activities for a period of time following his employment
with the Company, specifically in a position that involves (i) responsibility and
decision-making authority or input at the executive level regarding any subject or
responsibility, (ii) decision-making responsibility or input at any management level in

 

 

the Participant’s individual area of assignment with the Company, or (iii)
responsibility and decision-making authority or input that otherwise allows the use of the
Confidential Information (collectively referred to as the “Restricted Occupation”).
Therefore, except with the prior written consent of the Company, during the term of this
letter agreement, the Participant agrees not to be employed by, consult for or otherwise
act on behalf of any person or entity in any capacity in which he would be involved,
directly or indirectly, in a Restricted Occupation. The Participant acknowledges that this
commitment is intended to protect the Confidential Information and is not intended to be
applied or interpreted as a covenant against competition.

     The Participant further agrees that during the term of this letter agreement, the
Participant will not, directly or indirectly on behalf of a person or entity or otherwise,
(i) solicit any of the established customers of the Company or attempt to induce any of the
established customers of the Company to cease doing business with the Company, or (ii)
solicit any of the employees of the Company to cease employment with the Company.

     This letter agreement shall become effective upon execution by the Participant and the
Company and shall terminate on December 31, 20__. [Note: Insert date that is the end of
the calendar year of the letter agreement.]

     If you agree to the above terms and conditions, please execute a copy of this letter
agreement below and return a copy to me.

	 	 	 	 	 

	 

	 	“PARTICIPANT”	 	 
	 
	 	 	 	 
	 
	 

	 	 

[Name of Participant]
	 	 

THE UNDERSIGNED HEREBY ACCEPTS AND AGREES TO THE TERMS SET FORTH ABOVE AS OF THIS ____ DAY OF
____________, ___.

	 	 	 	 	 	 	 

	 	 	“COMPANY”	 	 
	 
	 	 	 	 	 	 
	 	 	DEVON ENERGY CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

 

 

EXHIBIT B

Form of Compliance Certificate

     I hereby certify that I am in full compliance with the covenants contained in that certain
letter agreement (the “Agreement”) dated as of ____________, ____ between Devon Energy Corporation
and me and have been in full compliance with such covenants at all times during the period ending
October 31, ____.

	 	 	 	 	 	 	 
	 

	 

	 	 	 	 

[Name of Participant]
	 	 
	 
	 	 	 	 	 	 
	Dated:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00184-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00184-of-00352.parquet"}]]