Document:

exv10w3

 

Exhibit 10.3

MARINER ENERGY, INC.

SECOND AMENDED AND RESTATED STOCK INCENTIVE PLAN

     Section 1. Purpose of the Plan.

     The Mariner Energy, Inc. Stock Incentive Plan effective as of March 11, 2005, as previously
amended and restated (the “Prior Plan”), is hereby amended and restated in its entirety. The Prior
Plan, as hereby amended and restated (the “Plan” or the “Amended and Restated Plan”) is intended to
promote the interests of Mariner Energy, Inc., a Delaware corporation (the “Company”), by
encouraging Employees and Directors to acquire or increase their equity interest in the Company and
to provide a means whereby they may develop a sense of proprietorship and personal involvement in
the development and financial success of the Company, and to encourage them to remain with and
devote their best efforts to the business of the Company, thereby advancing the interests of the
Company and its stockholders. The Plan is also contemplated to enhance the ability of the Company
and its Subsidiaries to attract and retain the services of individuals who are essential for the
growth and profitability of the Company.

     Section 2. Definitions.

     As used in the Plan, the following terms shall have the meanings set forth below:

     “Award” shall mean an Option or Restricted Stock.

     “Award Agreement” shall mean any written or electronic agreement, contract, instrument or
document evidencing any Award, which may, but need not, be executed or acknowledged by a
Participant.

     “Board” shall mean the Board of Directors of the Company.

     “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time, and the
rules and regulations thereunder.

     “Committee” shall mean the Board or any committee of the Board designated, from time to time,
by the Board to act as the Committee under the Plan.

     “Director” shall mean any member of the Board who is not an Employee.

     “Employee” shall mean any employee of the Company, a Subsidiary or a Parent Entity.

     “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

“Fair Market Value” shall mean, as of any applicable date, the last reported sales price for
a Share on the principal securities exchange on which the Shares are traded on the
applicable date as reported by such reporting service approved by the Committee; provided,
however, that if Shares shall not have been quoted or traded on such applicable date, Fair
Market Value shall be determined based on the next preceding date on which they were quoted
or traded, or, if deemed appropriate by the Committee, in such other manner as it may
determine to be appropriate; and provided further,
however, for purposes of Section 6(c)(vi) of the Plan, the Fair Market Value of Shares

 

 

withheld to satisfy tax withholding upon expiration of a Restricted Period applicable to
Restricted Stock shall be the last reported sales price for a Share on the principal
securities exchange on which the Shares are traded on the first trading day preceding the
expiration of the Restricted Period. In the event the Shares are not publicly traded at the
time a determination of its Fair Market Value is required to be made hereunder, the
determination of Fair Market Value shall be made in good faith by the Committee.

     “Incentive Stock Option” or “ISO” shall mean an option granted under Section 6(a) of the Plan
that is intended to qualify as an “incentive stock option” under Section 422 of the Code or any
successor provision thereto.

     “Non-Qualified Stock Option” or “NQO” shall mean an option granted under Section 6(a) of the
Plan that is not intended to be an Incentive Stock Option.

     “Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option.

     “Parent Entity” means any entity that owns a majority of the voting power of the Company,
directly or indirectly, except with respect to the grant of an ISO the term Parent Entity shall
mean any “parent corporation” as defined in Section 424 of the Code.

     “Participant” shall mean any Employee or Director granted an Award under the Plan.

     “Person” shall mean individual, corporation, partnership, limited liability company,
association, joint-stock company, trust, unincorporated organization, government or political
subdivision thereof or other entity.

     “Restricted Period” shall mean the period established by the Committee with respect to an
Award during which the Award either remains subject to forfeiture or is not exercisable by the
Participant.

     “Restricted Stock” shall mean any Share, prior to the lapse of restrictions thereon, granted
under Section 6(b) of the Plan.

     “Rule 16b-3” shall mean Rule 16b-3 promulgated by the SEC under the Exchange Act, or any
successor rule or regulation thereto as in effect from time to time.

     “SEC” shall mean the Securities and Exchange Commission, or any successor thereto.

     “Shares” or “Common Shares” or “Common Stock” shall mean the common stock of the Company,
$.0001 par value, and such other securities or property as may become the subject of Awards of the
Plan.

     “Subsidiary” shall mean any entity (whether a corporation, partnership, joint venture, limited
liability company or other entity) in which the Company owns a majority of the voting power of the
entity directly or indirectly, except with respect to the grant of an ISO the term Subsidiary shall
mean any “subsidiary corporation” of the Company as defined in Section 424 of the Code.

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     Section 3. Administration.

     The Plan shall be administered by the Committee. A majority of the Committee shall constitute
a quorum, and the acts of the members of the Committee who are present at any meeting thereof at
which a quorum is present, or acts unanimously approved by the members of the Committee in writing,
shall be the acts of the Committee. Subject to the terms of the Plan and applicable law, and in
addition to other express powers and authorizations conferred on the Committee by the Plan, the
Committee shall have full power and authority to: (i) designate Participants; (ii) determine the
type or types of Awards to be granted to a Participant; (iii) determine the number of Shares to be
covered by, or with respect to which payments, rights, or other matters are to be calculated in
connection with, Awards; (iv) determine the terms and conditions of any Award; (v) determine
whether, to what extent, and under what circumstances Awards may be settled or exercised in cash,
Shares, other securities, other Awards or other property, or canceled, forfeited, or suspended and
the method or methods by which Awards may be settled, exercised, canceled, forfeited, or
suspended;(vi) interpret and administer the Plan and any instrument or agreement relating to an
Award made under the Plan; (vii) establish, amend, suspend, or waive such rules and regulations and
appoint such agents as it shall deem appropriate for the proper administration of the Plan; and
(viii) make any other determination and take any other action that the Committee deems necessary or
desirable for the administration of the Plan. Unless otherwise expressly provided in the Plan, all
designations, determinations, interpretations, and other decisions under or with respect to the
Plan or any award shall be within the sole discretion of the Committee, may be made at any time and
shall be final, conclusive, and binding upon all Persons, including the Company, any Subsidiary,
any Parent Entity, any Participant, any holder or beneficiary of any Award, any stockholder and any
other Person.

     Section 4. Shares Available for Awards.

     (a) Shares Available. Subject to adjustment as provided in Section 4(c), (i) the number of
Shares that may be issued with respect to Awards granted under the Plan shall be 6,500,000, and
(ii) the maximum number of shares with respect to which Options or Restricted Stock may be granted
to an Employee during the term of the Plan shall be 2,850,000. If an Award is forfeited or
otherwise lapses, expires, terminates or is canceled without the actual delivery of Shares, then
the Shares covered by such Award, to the extent of such forfeiture, expiration, lapse, termination
or cancellation, shall again be Shares that may be issued with respect to Awards granted under the
Plan. Shares withheld by the Company to satisfy tax withholding or exercise price obligations shall
not be considered delivered under the Plan and shall again be available for issuance under future
Awards.

     (b) Sources of Shares Deliverable Under Awards. Any Shares delivered pursuant to an Award may
consist, in whole or in part, of authorized and unissued Shares or of treasury Shares.

     (c) Adjustments. In the event of a stock dividend or stock split with respect to Shares, the
number of Shares with respect to which Awards may be granted, the maximum number of shares with
respect to which Options or Restricted Stock may be granted to an Employee during the term of the
Plan, the number of Shares subject to outstanding Awards, and the grant or exercise price with
respect to outstanding Awards automatically shall be proportionately adjusted, without action by
the Committee, which adjustment will be evidenced by written addendums to the Plan and Award
Agreements prepared by the Company and, with respect to
Options, shall be in accordance with the Treasury Regulations concerning Incentive Stock
Options.

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     Section 5. Eligibility.

     Any Employee or Director shall be eligible to be designated a Participant by the Committee.

     Section 6. Awards.

     (a) Options. Subject to the provisions of the Plan, the Committee shall have the authority to
determine Participants to whom Options shall be granted, the number of Shares to be covered by each
Option, the purchase price therefor and the conditions, whether the Option is an ISO or a
Non-Qualified Stock Option, and limitations applicable to the exercise of the Option, including the
following terms and conditions and such additional terms and conditions, as the Committee shall
determine, that are not inconsistent with the provisions of the Plan.

     (i) Exercise Price. Subject to adjustment pursuant to Section 4(c) of the Plan, the
purchase price per Share purchasable under an Option shall be determined by the Committee at
the time the Option is granted, but shall not be less than the Fair Market Value per Share
on the effective date of such grant.

     (ii) Time and Method of Exercise. The Committee shall determine and provide in the
Award Agreement the time or times at which an Option may be exercised in whole or in part,
and the method or methods by which, and the form or forms (which may include, without
limitation, cash, check acceptable to the Company, Shares already-owned by the Participant
for more than six months (unless such holding requirement is waived by the Committee), if
the Shares are publicly traded, a “cashless-broker” exercise through procedures approved by
the Company, or any combination thereof) in which payment of the exercise price with respect
thereto may be made or deemed to have been made.

     (iii) Incentive Stock Options. An Incentive Stock Option may be granted only to an
individual who is an employee of the Company or any parent or subsidiary corporation (as
defined in section 424 of the Code) at the time the Option is granted and must be granted
within 10 years from the date the Plan was approved by the Board or the shareholders,
whichever is earlier. To the extent that the aggregate Fair Market Value (determined at the
time the respective Incentive Stock Option is granted) of Common Stock with respect to which
Incentive Stock Options are exercisable for the first time by an individual during any
calendar year under all incentive stock option plans of the Company and its parent and
subsidiary corporations exceeds $100,000, or such Option fails to constitute an Incentive
Stock Option for any reason, such purported Incentive Stock Options shall be treated as
Non-Qualified Stock Options. The Committee shall determine, in accordance with applicable
provisions of the Code, Treasury Regulations and other administrative pronouncements, which
of a Participant’s purported Incentive Stock Options do not constitute Incentive Stock
Options and shall notify the Participant of such determination as soon as reasonably
practicable after such determination. No Incentive Stock Option shall be granted to an
individual if, at the time the Option is granted, such individual owns stock possessing more
than 10% of the total combined voting power of all classes of stock of the Company or of its
parent or subsidiary corporation, within the meaning of section 422(b)(6) of the Code,
unless (i) at the time such Option is granted the option price is at least 110% of the Fair
Market Value

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of the Common Stock subject to the Option and (ii) such Option by its terms is not
exercisable after the expiration of five years from the date of grant. An Incentive Stock
Option shall not be transferable otherwise than by will or the laws of descent and
distribution, and shall be exercisable during the Participant’s lifetime only by such
Participant or the Participant’s guardian or legal representative. The terms of any
Incentive Stock Option granted under the Plan shall comply in all respects with the
provisions of Section 422 of the Code, or any successor provision, and any regulations
promulgated thereunder.

     (b) Restricted Stock. Subject to the provisions of the Plan, the Committee shall have the
authority to determine the Participants to whom Restricted Stock shall be granted, the number of
Shares of Restricted Stock to be granted to each such Participant, the duration of the Restricted
Period, the conditions, including such performance criteria, if any, under which the Restricted
Stock may be forfeited to the Company, and the other terms and conditions of such Awards.

     (i) Dividends. Dividends paid on Restricted Stock may be paid directly to the
Participant, may be subject to risk of forfeiture and/or transfer restrictions during any
period established by the Committee or sequestered and held in a bookkeeping cash account
(with or without interest) or reinvested on an immediate or deferred basis in additional
shares of Common Stock, which credit or shares may be subject to the same restrictions as
the underlying Award or such other restrictions, all as determined by the Committee in its
discretion, as provided in the Award Agreement.

     (ii) Registration. Any Restricted Stock may be evidenced in such manner as the
Committee shall deem appropriate, including, without limitation, book-entry registration or
issuance of a stock certificate or certificates. In the event any stock certificate is
issued in respect of Restricted Stock granted under the Plan, such certificate shall be
registered in the name of the Participant and shall bear an appropriate legend referring to
the terms, conditions, and restrictions applicable to such Restricted Stock.

     (iii) Forfeiture and Restrictions Lapse. Except as otherwise determined by the
Committee or the terms of the Award Agreement that granted the Restricted Stock, upon
termination of a Participant’s employment for any reason during the applicable Restricted
Period, all Restricted Stock shall be forfeited by the Participant without payment and
re-acquired by the Company. The Committee may, when it finds that a waiver would be in the
best interests of the Company, waive in whole or in part any or all remaining restrictions
with respect to such Participant’s Restricted Stock, provided, however, if the Award is
intended to qualify as performance based compensation under Section 162(m) of the Code, such
waiver may be only upon an event permitted under Section 162(m) of the Code or the
regulations thereunder. Unrestricted Shares, evidenced in such manner as the Committee shall
deem appropriate, shall be issued to the holder of Restricted Stock promptly after the
applicable restrictions have lapsed or otherwise been satisfied.

     (iv) Transfer Restrictions. During the Restricted Period, Restricted Stock will be
subject to such limitations on transfer as necessary to comply with Section 83 of the Code.

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     (c) General.

     (i) Awards May Be Granted Separately or Together. Awards may, in the discretion of the
Committee, be granted either alone or in addition to, in tandem with, any other Award
granted under the Plan or any award granted under any other plan of the Company or any
Parent Entity or Subsidiary. Awards granted in addition to or in tandem with other Awards or
awards granted under any other plan of the Company or any Parent Entity or Subsidiary may be
granted either at the same time as or at a different time from the grant of such other
Awards or awards.

     (ii) Limits on Transfer of Awards.

          (A) Except as provided in paragraph (C) below, each Award, and each right under
any Award, shall be exercisable only by the Participant during the Participant’s
lifetime, or if permissible under applicable law, by the Participant’s guardian or
legal representative as determined by the Committee.

          (B) Except as provided in paragraph (C) below, no Award and no right under any
such Award may be assigned, alienated, pledged, attached, sold or otherwise
transferred or encumbered by a Participant other than by will or by the laws of
descent and distribution, and any such purported prohibited assignment, alienation,
pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable
against the Company or any Parent Entity or Subsidiary.

          (C) To the extent specifically approved in writing by the Committee, an Award
(other than an Incentive Stock Option) may be transferred to immediate family
members or related family trusts, limited partnerships or similar entities or other
Persons on such terms and conditions as the Committee may establish or approve in
its sole discretion.

     (iii) Terms of Awards. The term of each Award shall be for such period as may be
determined by the Committee, provided the term of an Incentive Stock Option shall be limited
as provided in Section 6(a)(iii).

     (iv) Share Restrictions. All Shares or other securities of the Company or any
Subsidiary delivered under the Plan pursuant to any Award or the exercise thereof shall be
subject to such stop transfer orders and other restrictions as the Committee may deem
advisable under the Plan or the rules, regulations, and other requirements of the SEC, any
stock exchange upon which such Shares or other securities are then listed, and any
applicable federal or state laws, and if certificates are issued for the Shares, the
Committee may cause a legend or legends to be put on any such certificates to make
appropriate reference to such restrictions.

     (v) Consideration for Grants. Awards may be granted for no cash consideration or for
such consideration as the Committee determines including, without limitation, such minimal
cash consideration as may be required by applicable law.

     (vi) Delivery of Shares or other Securities and Payment by Participant of
Consideration. No Shares or other securities shall be delivered pursuant to any Award until
payment in full of any amount required to be paid pursuant to the Plan or the applicable
Award Agreement (including, without limitation, any exercise price or tax

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withholding) is received by the Company. Such payment may be made by such method or
methods and in such form or forms as the Committee shall determine, including, without
limitation, cash, Shares, other securities, other Awards or other property, withholding of
Shares, cashless exercise with simultaneous sale, or any combination thereof, provided that
the combined value, as determined by the Committee, of all cash and cash equivalents and the
Fair Market Value of any such Shares or other property so tendered to the Company, as of the
date of such tender, is at least equal to the full amount required to be paid pursuant to
the Plan or the applicable Award Agreement to the Company. Notwithstanding the foregoing,
for purposes of this Section 6(c)(vi), the Fair Market Value of Shares withheld to satisfy
tax withholding upon expiration of a Restricted Period applicable to Restricted Stock shall
be the last reported sales price for a Share on the principal securities exchange on which
the Shares are traded on the first trading day preceding the expiration of the Restricted
Period.

     (vii) Unusual Transactions or Events. In the event of any distribution (whether in the
form of cash, Shares, other securities, or other property), recapitalization,
reorganization, merger, spin-off, split-off, split-up, consolidation, combination,
repurchase, or exchange of Shares or other securities of the Company, or other relevant
corporate transaction or event or any unusual or nonrecurring transactions or events
affecting the Company or any affiliate of the Company, and whenever the Committee determines
that action is appropriate in order to prevent the dilution or enlargement of the benefits
or potential benefits intended to be made available under the Plan or with respect to any
Award under the Plan, to facilitate such transactions or events, the Committee shall take
any one or more of the following actions, on such terms and conditions as it deems
appropriate in its sole discretion, in order to prevent such dilution or enlargement of
benefits or potential benefits:

          (A) To provide for either (i) the termination of any such Award in exchange for
an amount of cash, if any, equal to the amount that would have been attained upon
the exercise of such Award or realization of the Participant’s rights (and, for the
avoidance of doubt, if as of the date of the occurrence of such transaction or event
the Committee determines in good faith that no amount would have been attained upon
the exercise of such Award or realization of the Participant’s rights, then such
Award may be terminated by the Company without payment) or (ii) the replacement of
such Award with other rights or property selected by the Committee in its sole
discretion;

          (B) To provide that such Award be assumed by the successor or survivor
corporation, or a parent or subsidiary thereof, or shall be substituted for by
similar options, rights or awards covering the stock of the successor or survivor
corporation, or a parent or subsidiary thereof, with appropriate adjustments as to
the number and kind of shares and prices;

          (C) To make adjustments in the number and type of shares of common Stock (or
other securities or property) subject to outstanding Awards, and in the number and
kind of outstanding Awards and/or in the terms and conditions of (including the
grant or exercise price), and the criteria included in, outstanding Awards and
Awards which may be granted in the future, and in the maximum number of shares with
respect to which Options or Restricted Stock may be granted to an Employee during
the term of the Plan; and

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          (D) To provide that such Award shall be exercisable or payable or fully vested
with respect to all Shares covered thereby, notwithstanding anything to the contrary
in the Plan or the applicable Award Agreement.

     Section 7. Amendment and Termination.

     Except to the extent prohibited by applicable law and unless otherwise expressly provided in
an Award Agreement or in the Plan:

     (i) Amendments to the Plan. The Board or the Committee may amend, alter, suspend,
discontinue, or terminate the Plan without the consent of any stockholder, Participant,
other holder or beneficiary of an Award, or other Person; provided, however, notwithstanding
any other provision of the Plan or any Award Agreement, without the approval of the
stockholders of the Company (i) no such amendment, alteration, suspension, discontinuation,
or termination shall be made that would increase the total number of Shares that may be
issued under Awards granted under the Plan, except as provided in Section 4(c) of the Plan,
or (ii) permit the exercise price of any outstanding Option that is “underwater” to be
reduced or for an “underwater” Option to be cancelled and replaced with a new Award;
provided further, however, no such amendment, alteration, suspension, discontinuation, or
termination shall materially adversely affect the rights of a Participant under an Award
without the consent of such Participant.

     (ii) Amendments to Awards. Subject to clause (i) above, the Committee may waive any
conditions or rights under, amend any terms of, or alter any Award theretofore granted,
provided no change in any Award shall materially adversely affect the rights of a
Participant under the Award without the consent of such Participant. Notwithstanding the
foregoing, with respect to any Award intended to qualify as performance-based compensation
under Section 162(m) of the Code, no adjustment other than an acceleration of vesting or
payment upon the Participant’s death, disability or change of control of the Company, shall
be authorized to the extent such adjustment would cause the Award to fail to so qualify.

     (iii) Compliance. Notwithstanding the foregoing, the Committee may make any amendment
to the Plan or an Award Agreement that it believes necessary or helpful to comply with any
applicable law, including without limitation, Section 409A of the Code.

     Section 8. General Provisions.

     (a) No Rights to Awards. No Participant or other Person shall have any claim to be granted any
Award, there is no obligation for uniformity of treatment of Participants, or holders or
beneficiaries of Awards and the terms and conditions of Awards need not be the same with respect to
each recipient.

     (b) No Right to Employment or Retention. The grant of an Award shall not be construed as
giving a Participant the right to be retained in the employ of the Company or any Parent Entity or
Subsidiary or under any other service contract with the Company or any Parent Entity or Subsidiary,
or to remain on the Board. Further, the Company or a Parent Entity or Subsidiary may at any time
dismiss a Participant from employment free from any liability or any claim under the Plan, unless
otherwise expressly provided in the Plan, in any Award Agreement or any other agreement or contract
between the Company or a Parent Entity or Subsidiary and the affected Participant. If a
Participant’s employer was a Parent Entity or Subsidiary and ceases to be a

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Parent Entity or Subsidiary, such Participant shall be deemed to have terminated employment
for purposes of the Plan, unless specifically provided otherwise in the Award Agreement.

     (c) Governing Law. The validity, construction, and effect of the Plan and any rules and
regulations relating to the Plan shall be determined in accordance with the laws of the State of
Delaware and applicable federal law.

     (d) Severability. If any provision of the Plan or any Award is or becomes or is deemed to be
invalid, illegal, or unenforceable in any jurisdiction or as to any Person or Award, or would
disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision
shall be construed or deemed amended to conform to the applicable laws, or if it cannot be
construed or deemed amended without, in the determination of the Committee, materially altering the
intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Person
or Award and the remainder of the Plan and any such Award shall remain in full force and effect.

     (e) Other Laws. The Committee may refuse to issue or transfer any Shares or other
consideration under an Award, permit the exercise of an Award and/or the satisfaction of its tax
withholding obligation in the manner elected by the Participant, holder or beneficiary if, acting
in its sole discretion, it determines that the issuance of transfer or such Shares or such other
consideration, the manner of exercise or satisfaction of the tax withholding obligation might
violate any applicable law or regulation, including without limitation, the Sarbanes-Oxley Act, or
entitle the Company to recover the same under Section 16(b) of the Exchange Act, and any payment
tendered to the Company by a Participant, other holder or beneficiary in connection with the
exercise of such Award shall be promptly refunded or refused, as the case may be, to the relevant
Participant, holder or beneficiary.

     (f) No Trust or Fund Created. Neither the Plan nor the Award shall create or be construed to
create a trust or separate fund of any kind or a fiduciary relationship between the Company or any
Parent Entity or Subsidiary and a Participant or any other Person. To the extent that any Person
acquires a right to receive payments from the Company or any Parent Entity or Subsidiary pursuant
to an Award, such right shall be no greater than the right of any general unsecured creditor of the
Company or any Parent Entity or Subsidiary.

     (g) No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the
Plan or any Award, and the Committee shall determine whether cash, other securities, or other
property shall be paid or transferred in lieu of any fractional Shares or whether such fractional
Shares or any rights thereto shall be cancelled, terminated, or otherwise eliminated.

     (h) Headings. Headings are given to the Section and subsections of the Plan solely as a
convenience to facilitate reference. Such headings shall not be deemed in any way material or
relevant to the construction or interpretation of the plan or any provision thereof.

     Section 9. Effective Date.

     This Amended and Restated Plan shall become effective as of February 6, 2007.

     Section 10. Term of the Plan.

     No Award shall be granted under this Amended and Restated Plan after October 12, 2015 (the
10th anniversary of the earlier of the date this Amended and Restated Plan was

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adopted by the Board or approved by the stockholders of the Company). However, unless
otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award granted
prior to such termination, and the authority of the Committee to amend, alter, adjust, suspend,
discontinue, or terminate any such Award or to waive any conditions or rights under such Award,
shall extend beyond such termination date.

10exv10w6

 

Exhibit 10.6

Restricted Stock Agreement

MARINER ENERGY, INC.

SECOND AMENDED AND RESTATED STOCK INCENTIVE PLAN

	 	 	 	 	 
	  Grantee:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	  Date of Grant:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	  RS Grant Number:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	  Number of Restricted Shares Granted:
	 	 	 	 
	 

	 	 

	 	 

     1. Notice of Grant. Subject to the terms and conditions of the Mariner Energy, Inc.
Second Amended and Restated Stock Incentive Plan, as may be amended or restated from time to time
(the “Plan”), and this Agreement, you are hereby granted pursuant to the Plan, the above number of
restricted shares of Common Stock (“Restricted Stock”) of Mariner Energy, Inc. (the “Company”).

     2. Vesting of Restricted Stock. Subject to the further provisions of this Agreement,
if you continue in service as a Director until the dates specified below, the shares of Restricted
Stock shall become vested in accordance with the following schedule:

     Notwithstanding the above vesting schedule, but subject to the further provisions hereof, upon
the occurrence of the following events the unvested shares of Restricted Stock shall vest or be
forfeited as provided below:

     (a) Disability. If you should cease to serve as a Director of the Company by
reason of a disability, the unvested shares of Restricted Stock shall become fully vested.
For purposes of this Agreement, the term “disability” shall mean the inability or incapacity
of the Grantee to perform the essential functions of the Director’s position as a director
of the Company. Such inability or incapacity shall be documented to the reasonable
satisfaction of the Board by appropriate correspondence from physicians who are reasonably
satisfactory to the Board.

     (b) Death. If you die while serving as a Director of the Company, the unvested
shares of Restricted Stock shall become fully vested.

     (c) Change of Control. If you have served as a Director of the Company
continuously from the Date of Grant to the date upon which a Change of Control occurs, then
the unvested shares of Restricted Stock shall become fully vested upon the date of such
Change of Control.

     For purposes of this Agreement, “Change of Control” shall mean, after the Date of
Grant, (i) any person or group of affiliated or associated persons acquires more than
35% of the voting power in the Company; (ii) the consummation of a sale of all or
substantially all of the assets of the Company; (iii) the dissolution of the Company; or
(iv)

 

 

the consummation of any merger, consolidation, or reorganization involving the Company
in which, immediately after giving effect to such merger, consolidation or reorganization,
less than 51% of the total voting power of outstanding stock of the surviving or resulting
entity is then “beneficially owned” (within the meaning of Rule 13d-3 under the Securities
Exchange Act of 1934, as amended) in the aggregate by the stockholders of the Company
immediately prior to such merger, consolidation or reorganization.

     (d) Termination of Service. If you cease to serve as a Director of the
Company for any reason other than as provided in paragraph 3(a) or 3(b) above, the unvested
shares of Restricted Stock shall be forfeited without consideration as of the date of
termination of service.

     All cash dividends on unvested shares of Restricted Stock held by you shall be paid to you no
later than the later of (i) the end of the calendar year in which the dividends are paid to
shareholders of Company Common Stock or (ii) the 15th day of the third month following
the date the dividends are paid to shareholders. Any stock dividends shall result in an automatic
adjustment to the number of shares of Restricted Stock subject to the vesting provisions of this
award in accordance with the terms of the Plan.

     3. Book Entry. A book entry evidencing the shares of Restricted Stock shall be made
in your name in the books of the Company maintained by its transfer agent, pursuant to which you
shall have all of the rights of a shareholder of the Company (except with respect to dividends as
provided above) with respect to the shares of Restricted Stock, including, without limitation,
voting rights. The book entry shall reflect the restrictions on transfer set forth in Section 4
below. Upon vesting, the Company shall cause the book entry to be amended to remove any
restrictions (except for any restrictions required pursuant to applicable securities laws or any
other agreement to which you are a party) with respect to the shares of Restricted Stock that have
vested.

     4. Nontransferability of Restricted Stock. Prior to vesting, you may not sell,
transfer, pledge, exchange, hypothecate or dispose of the shares of Restricted Stock in any manner
otherwise than by will or by the laws of descent or distribution. A breach of the terms of this
Agreement shall cause a forfeiture of all shares of unvested Restricted Stock.

     5. Entire Agreement; Governing Law. The Plan is incorporated herein by reference.
The Plan and this Agreement constitute the entire agreement of the parties with respect to the
subject matter hereof and thereof and supersede in their entirety all prior undertakings and
agreements of the Company and you with respect to the subject matter hereof, and may not be
modified adversely to your interest except by means of a writing signed by the Company and you.
This Agreement is governed by the internal substantive laws, but not the choice of law rules, of
the State of Texas.

     6. Withholding of Tax. To the extent that the receipt of the shares of Restricted
Stock or the vesting thereof results in income to you for federal, state or other tax purposes,
unless the Company agrees otherwise, you shall either pay the Company an amount of cash equal to
the Company’s tax withholding obligations or have the Company withhold and cancel from the number
of shares of Restricted Stock awarded you such number of shares of Restricted Stock as the Company
determines to be necessary to satisfy the tax required to be
withheld by the Company; provided however, that (a) if you fail to satisfy the Company’s tax
withholding obligations, the Company, in its sole discretion, may withhold and cancel from the
number of shares of Restricted Stock awarded you such number of shares of Restricted Stock as it
determines to be necessary to satisfy the tax required to be withheld by the Company, and

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(b) if
the vesting of shares of Restricted Stock occurs as the result of your death while serving as a
director of the Company, the Company shall withhold and cancel from the number of shares of
Restricted Stock awarded you such number of shares of Restricted Stock as it determines to be
necessary to satisfy the tax required to be withheld by the Company.

     7. Amendment. Except as provided below, this Agreement may not be modified in any
respect by any verbal statement, representation or agreement or by any employee, officer, or
representative of the Company or by any written agreement unless signed by you and by an
officer of the Company who is expressly authorized by the Company to execute such document.
Notwithstanding anything in the Plan or this Agreement to the contrary, if the Committee determines
that the terms of this grant do not, in whole or in part, satisfy the requirements of Section 409A
of the Internal Revenue Code, to the extent applicable, the Committee, in its sole discretion, may
unilaterally modify this Agreement in such manner as it deems appropriate to comply with such
section and any regulations or guidance issued thereunder.

     8. Status of Stock. You agree that the shares of Restricted Stock issued under this
Agreement will not be sold or otherwise disposed of in any manner that would constitute a violation
of the terms and provisions of any applicable federal or state securities laws. You also agree
that (i) the book entry made (or the certificates, if any are issued) representing the shares of
Restricted Stock may bear such restriction, restrictions, legend or legends as the Committee deems
appropriate, (ii) the Company may refuse to register the transfer of the Restricted Stock on the
stock transfer records of the Company if such proposed transfer would, in the opinion of counsel
satisfactory to the Company, be contrary to the terms and provisions of any applicable securities
law, and (iii) the Company may give related instructions to its transfer agent, if any, to stop
registration of the transfer of the Restricted Stock.

     9. General. You agree that the shares of Restricted Stock are granted under and
governed by the terms and conditions of the Plan and this Agreement. In the event of any conflict,
the terms of the Plan shall control. Capitalized terms used but not defined herein shall have the
meanings assigned such terms in the Plan.

	 	 	 	 	 	 	 
	 	 	MARINER ENERGY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

  Name:
	 	 
	 

	 	 	 	  Title:	 	 
	 
	 	 	 	 	 	 
	 

	 	[NAME]	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Signature	 	 

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