Document:

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                                                                   EXHIBIT 10.22

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                              EMPLOYMENT AGREEMENT

                                 by and between

                                DEVX ENERGY, INC.

                                       and

                               JOSEPH T. WILLIAMS

                               September 22, 2000

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                              EMPLOYMENT AGREEMENT
                                TABLE OF CONTENTS

<TABLE>
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<S>                                                                          <C>
1.   Employment ..............................................................1

2.   Employment Term .........................................................1

3.   Positions and Duties ....................................................2

4.   Compensation and Related Matters ........................................3
     (a)   Base Salary .......................................................3
     (b)   Annual Bonus ......................................................3
     (c)   Stock Options .....................................................3
     (d)   Employee Benefits .................................................4
                  (i)  Incentive, Savings, and Retirement Plans ..............4
                  (ii) Welfare Benefit Plans .................................4
     (e)   Expenses ..........................................................5
     (f)   Fringe Benefits ...................................................5
     (g)   Vacation ..........................................................5

5.   Termination of Employment ...............................................5
     (a)   Death .............................................................5
     (b)   Disability ........................................................5
     (c)   Termination by Company ............................................6
     (d)   Termination by Executive ..........................................6
     (e)   Notice of Termination .............................................7
     (f)   Date of Termination ...............................................7

6.   Obligations of the Company Upon Termination .............................8
     (a)   Good Reason; Other Than for Cause, Death, or Disability ...........8
     (b)   Death ............................................................11
     (c)   Disability .......................................................11
     (d)   Cause; Other Than for Good Reason or During the
           Window Period ....................................................11

7.   Certain Additional Payments by the Company .............................12

8.   Representations and Warranties .........................................14

9.   Confidential Information ...............................................14

10.  Certain Definitions ....................................................15
     (a)   Effective Date ...................................................15
     (b)   Change of Control Period .........................................15
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<TABLE>
<S>                                                                         <C>
     (c)   Change of Control ................................................15

11.  Full Settlement ........................................................17

12.  No Effect on Other Contractual Rights ..................................18

13.  Indemnification; Directors and Officers Insurance ......................18

14.  Injunctive Relief ......................................................18

15.  Governing Law ..........................................................19

16.  Notices ................................................................19

17.  Binding Effect; Assignment; No Third Party Benefit .....................19

18.  Miscellaneous ..........................................................20
     (a)   Amendment ........................................................20
     (b)   Waiver ...........................................................20
     (c)   Withholding Taxes ................................................20
     (d)   Nonalienation of Benefits ........................................20
     (e)   Severability .....................................................20
     (f)   Entire Agreement .................................................20
     (g)   Captions .........................................................20
     (h)   References .......................................................21
</TABLE>

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                              EMPLOYMENT AGREEMENT

       This EMPLOYMENT AGREEMENT (this "Agreement"), dated as of September 22,
2000, by and between DEVX ENERGY, INC., a Delaware corporation (the
"Company"), and JOSEPH T. WILLIAMS (the "Executive");

                                   WITNESSETH:

       WHEREAS, the Board of Directors of the Company (the "Board") has
determined that it is in the best interests of the Company and its stockholders
to assure that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat, or occurrence of a Change of Control
(as defined in Paragraph 10(c)) of the Company; and

       WHEREAS, the Board believes it is imperative to diminish the inevitable
distraction of the Executive by virtue of the personal uncertainties and risks
created by a pending or threatened Change of Control and to encourage the
Executive's full attention and dedication to the Company currently and in the
event of any pending or threatened Change of Control, and to provide the
Executive with assurance that the compensation and benefits expectations of the
Executive will be satisfied and will be competitive with those of other
corporations; and

       WHEREAS, in order to accomplish these objectives, the Board has caused
the Company to enter into this Agreement;

       NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements herein contained, and intending to be legally bound hereby, the
Company and the Executive hereby agree as follows:

       1. Employment. The Company agrees to employ the Executive, and the
Executive agrees to enter the employ of the Company, for the period set forth in
Paragraph 2(a), in the positions and with the duties and responsibilities set
forth in Paragraph 3, and upon the other terms and conditions herein provided.

       2. Employment Term. The employment of the Executive by the Company as
provided in Paragraph 1 shall be for the period commencing on September 22, 2000
through and ending on the second anniversary of such date (the "Employment
Term"); provided, however, that beginning on the first anniversary date of this
Agreement and on each annual anniversary of such date (such date and each annual
anniversary thereof herein referred to as the "Reset Date"), the Employment Term
shall be automatically extended so as to terminate two years after such Reset
Date, unless at least 60 days prior to the Reset Date the Company shall give
notice to the Executive that the Employment Term shall not be so extended; and
provided further, however, that following the occurrence of a Change of Control
(as defined in Paragraph 10(c) hereof) the term "Employment Term" as used herein
shall thereafter mean and refer to the Change of Control Period (as defined in
Paragraph 10(b) hereof).

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       3. Positions and Duties.

       (a) During the Employment Term, the Executive's position shall be
Chairman of the Board. As such, the Executive's responsibilities will include,
but not be limited to (i) establishing and directing corporate strategies with
the advice and counsel of the Chief Executive Officer and the Board of
Directors, (ii) being involved with the overall management of the Company's
business, including, without limitation, operations, finance and administration,
by providing senior level counsel and direction, (iii) along with the Chief
Executive Officer, where appropriate, representing the Company in relationships
and business dealings with the oil and gas industry and the investment banking
community, and (iv) managing the activities of the Board of Directors in keeping
with the Company's status as a publicly held corporation.

       (b) During the Employment Term, the Executive shall devote reasonable
time and attention during normal business hours to the business and affairs of
the Company, and in furtherance of the business and affairs of its affiliated
companies (as defined below), and shall utilize Executive's reasonable best
efforts to discharge faithfully and efficiently the duties and responsibilities
delegated and assigned to the Executive herein or pursuant hereto, except for
usual, ordinary, and customary periods of vacation and absence due to illness or
other disability; provided, however, that the Executive may (i) serve on
industry-related, civic or charitable boards or committees, (ii) with the
approval of the Board, serve on corporate boards or committees, (iii) deliver
lectures, fulfill speaking engagements, or teach at educational institutions,
and (iv) manage the Executive's personal investments, so long as such activities
do not significantly interfere with the performance and fulfillment of the
Executive's duties and responsibilities as an employee of the Company in
accordance with this Agreement and, in the case of the activities described in
clause (ii) of this proviso, will not, in the good faith judgment of the Board,
constitute an actual or potential conflict of interest with the business of the
Company or an affiliated company. As used in this Agreement, the term
"affiliated company" shall include any company controlled by, controlling, or
under common control with the Company.

       (c) In connection with the Executive's employment hereunder, the
Executive shall be primarily based at the Company's existing headquarters
located in Dallas, Texas or any office which is the headquarters of the Company
and is less than 10 miles from such location, subject, however, to normal and
customary travel on the business of the Company. It is expressly understood and
agreed that the Executive will maintain a secondary office at his home in
Colorado from which his duties and responsibilities may be conducted on behalf
of the Company primarily during the summer months and from time to time during
the calendar year. The Company agrees to furnish such office equipment and
supplies as the Executive may reasonably require and to pay all expenses
attributable to the Company's business associated therewith.

       (d) All services that the Executive may render to the Company or any of
its affiliated companies in any capacity during the Employment Term shall be
deemed to be services required by this Agreement and consideration for the
compensation provided for herein.

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       4. Compensation and Related Matters.

       (a) Base Salary. During the Employment Term, the Executive shall receive
an annual base salary ("Base Salary") of Two Hundred Fifty Thousand Dollars
($250,000.00). The Base Salary shall be payable in installments in accordance
with the general payroll practices of the Company in effect at the time such
payment is made, but in no event less frequently than monthly, or as otherwise
mutually agreed upon. During the Employment Term, the Executive's Base Salary
shall be subject to such increases (but not decreases) as may be determined from
time to time by the Board in its sole discretion; provided, however, that the
Executive's Base Salary (i) shall be reviewed by the Board at least annually,
with a view to making such upward adjustment, if any, as the Board deems
appropriate, and (ii) shall be increased at any time and from time to time as
shall be substantially consistent with increases in base salary generally
awarded in the ordinary course of business to the Executive's peer executives of
the Company or any of its affiliated companies. Base Salary shall not be reduced
after any such increase. The term Base Salary as used in this Agreement shall
refer to the Base Salary as so increased. Payments of Base Salary to the
Executive shall not be deemed exclusive and shall not prevent the Executive from
participating in any employee benefit plans, programs, or arrangements of the
Company and its affiliated companies in which the Executive is entitled to
participate. Payments of Base Salary to the Executive shall not in any way limit
or reduce any other obligation of the Company hereunder, and no other
compensation, benefit, or payment to the Executive hereunder shall in any way
limit or reduce the obligation of the Company regarding the Executive's Base
Salary hereunder.

       (b) Annual Bonus. Subject to proration as set forth below for calendar
year 2000, for each calendar year during the term of this Agreement, the
Executive shall be entitled to earn an annual cash bonus (the "Annual Bonus") of
between 20% and 120% of the Executive's Base Salary for such year upon attaining
goals established yearly by the Board of Directors of the Company. The goals
shall be established by the Board of Directors, after consultation with the
Executive, consistent with the Company's standards, and shall be established to
produce a reasonable expectation that the Executive will receive a target bonus
(the "Target Bonus") for each year at least equal to 60% of the Executive's Base
Salary for such year. In recognition of the fact that the remainder of calendar
year 2000 is a transition year for the Company and the Executive, the
Executive's bonus for calendar year 2000 shall be the amount calculated under
the following formula: (i) 60% of (ii) the Executive's Base Salary for 2000,
multiplied by (iii) a fraction the numerator of which is the number of days
remaining in 2000 after the date hereof and the denominator of which is 365.

       (c) Stock Options.

           (i) Concurrent with the closing of the Company's secondary public
       offering anticipated to occur on or before [         , 2000], the Company
       shall grant to the Executive an option to acquire 250,000 or more shares
       of the Common Stock of the Company pursuant to its [1997 Incentive Equity
       Plan] or elect in lieu thereof to take the action in (ii) below. The
       exercise price per share under such option shall be the fair market value
       of the stock as of the date of the grant of such option. The options
       granted to the Executive shall be incentive stock options, shall vest
       immediately as to 20,000 of such shares with the remaining shares vesting
       in equal amounts on the first and second anniversary hereof,

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and shall be pursuant to, and conditioned upon the execution by the Executive
of, a Stock Option Agreement substantially in the form attached hereto as
Exhibit A. The Executive shall be eligible to receive additional grants of stock
options as shall be determined by the Board of Directors from time to time
during the Employment Term. The Company shall cause its currently effective
registration statement on form S-8 (or comparable successor form) covering all
shares subject to options granted to the Executive to remain effective until
sixty (60) days after the later of exercise or termination of all options
granted to the Executive.

          (ii) In the event the Company does not grant the options described
above, or in the event the options are granted but all required approvals
(including stockholder approval) have not been timely obtained (as determined by
the Executive), then the Company will pay to the Executive an amount in cash
equal to the amount the Executive would have received if the options had been
granted with all requisite approvals, and the Executive sells all of the Common
Stock subject to option at the closing price thereof on the NASDAQ on the date
or dates selected by the Executive. The Executive shall notify the Company of
the date or dates of sale, with payment to be made by the Company within three
(3) business days after receipt of such notification from Executive.

(d)       Employee Benefits.

          (i) Incentive, Savings, and Retirement Plans. During the Employment
Term, the Executive shall be entitled to participate in all incentive, savings,
and retirement plans, programs, and arrangements applicable generally to the
Executive's peer executives of the Company and its affiliated companies, but in
no event shall such plans, programs, and arrangements provide the Executive with
incentive opportunities (measured with respect to both regular and special
incentive opportunities, to the extent, if any, that such distinction is
applicable), savings opportunities, and retirement benefit opportunities, in
each case, less favorable, in the aggregate, than the most favorable of those
provided by the Company and its affiliated companies under such plans, programs,
and arrangements to the Executive's peer executives of the Company and its
affiliated companies at any time during the 120-day period immediately preceding
the date hereof or, if more favorable to the Executive, as in effect generally
at any time after the date hereof with respect to the Executive's peer
executives of the Company and its affiliated companies.

          (ii) Welfare Benefit Plans. During the Employment Term, the Executive
and/or the Executive's family, as the case may be, shall be eligible to
participate in and shall receive all benefits under all welfare benefit plans,
programs, and arrangements provided by the Company and its affiliated companies
(including, without limitation, medical, prescription, dental, disability,
salary continuance, employee life, group life, accidental death, and travel
accident insurance plans, programs, and arrangements) to the extent applicable
generally to the Executive's peer executives of the Company and its affiliated
companies, but in no event shall such plans, programs, and arrangements provide
the Executive with welfare benefits that are less favorable, in the aggregate,
than the most favorable of such plans, programs, and arrangements as in effect
for the Executive's peer executives of the Company at any time during the
120-day period immediately preceding the date hereof or, if more favorable to
the

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       Executive, as in effect generally at any time after the date hereof with
       respect to the Executive's peer executives of the Company and its
       affiliated companies.

       (e) Expenses. During the Employment Term, the Executive shall be entitled
to receive prompt reimbursement for all reasonable expenses incurred by the
Executive in performing the Executive's duties and responsibilities hereunder
including, without limitation, all costs and expenses associated with the
Executive's secondary office in Colorado (including air travel to and from such
secondary office), in accordance with the most favorable policies, practices,
and procedures of the Company and its affiliated companies as in effect for the
Executive's peer executives of the Company and its affiliated companies at any
time during the 120-day period immediately preceding the date hereof or, if more
favorable to the Executive, as in effect generally at any time after the date
hereof with respect to the Executive's peer executives of the Company and its
affiliated companies.

       (f) Fringe Benefits. During the Employment Term, the Executive shall be
entitled to fringe benefits, including, without limitation, tax and financial
planning services, payment of club dues and assessment, including Dallas
Petroleum Club and Northwood Club, and use of an appropriate automobile and
payment of related expenses, in accordance with the most favorable policies,
practices, and procedures of the Company and its affiliated companies as in
effect for the Executive's peer executives of the Company at any time during the
120-day period immediately preceding the date hereof or, if more favorable to
the Executive, as in effect generally at any time after the date hereof with
respect to the Executive's peer executives of the Company and its affiliated
companies.

       (g) Vacation. During the Employment Term, the Executive shall be entitled
to paid vacation and such other paid absences, whether for holidays, illness,
personal time, or any similar purposes, in accordance with the most favorable
policies, practices, and procedures of the Company and its affiliated companies
as in effect for the Executive's peer executives of the Company at any time
during the 120-day period immediately preceding the date hereof or, if more
favorable to the Executive, as in effect generally at any time after the date
hereof with respect to the Executive's peer executives of the Company and its
affiliated companies.

       5. Termination of Employment.

       (a) Death. The Executive's employment shall terminate automatically upon
the Executive's death during the Employment Term.

       (b) Disability. If the Company determines in good faith that the
Disability (as defined below) of the Executive has occurred during the
Employment Term, the Company may give the Executive notice of its intention to
terminate the Executive's employment. In such event, the Executive's employment
hereunder shall terminate effective on the 30th day after receipt of such notice
by the Executive (the "Disability Effective Date"), provided that, within the
30-day period after such receipt, the Executive shall not have returned to
full-time performance of the Executive's duties. For purposes of this Agreement,
"Disability" shall mean the absence of the Executive from the Executive's duties
hereunder on a full-time basis for an aggregate of 180 days within any given
period of 270 consecutive days (in addition to any statutorily required leave of
absence and any leave of absence approved by the Company), as a result of
incapacity of the Executive, despite any reasonable

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accommodation required by law, due to bodily injury or disease or any other
mental or physical illness, which will, in the opinion of a physician selected
by the Company or its insurers and acceptable to the Executive or the
Executive's legal representative, be permanent and continuous during the
remainder of the Executive's life.

       (c) Termination by Company. The Company may terminate the Executive's
employment hereunder for Cause (as defined below). For purposes of this
Agreement, "Cause" shall mean:

                  (i) the willful and continued failure of the Executive to
       perform substantially the Executive's duties hereunder (other than any
       such failure resulting from bodily injury or disease or any other
       incapacity due to mental or physical illness), after a written demand for
       substantial performance is delivered to the Executive by the Board of the
       Company which specifically identifies the manner in which the Board
       believes the Executive has not substantially performed the Executive's
       duties; or

                  (ii) the willful engaging by the Executive in illegal conduct
       or gross misconduct that is materially and demonstrably detrimental to
       the Company, monetarily or otherwise.

For purposes of this provision, no act, or failure to act, on the part of the
Executive shall be considered "willful" unless done, or omitted to be done, by
the Executive in bad faith or without reasonable belief that the Executive's
action or omission was in the best interests of the Company. Any act, or failure
to act, based upon authority given pursuant to a resolution duly adopted by the
Board or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by the Executive in good faith and
in the best interests of the Company. The cessation of employment of the
Executive shall not be deemed to be for Cause unless and until there shall have
been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than two-thirds of the entire membership of the
Board then in office at a meeting of the Board called and held for such purpose
(after reasonable notice is provided to the Executive and the Executive is given
an opportunity, together with counsel, to be heard before the Board) finding
that, in the good faith opinion of the Board, the Executive is guilty of the
conduct described in subparagraph (i) or (ii) above, and specifying the
particulars thereof in detail.

       (d) Termination by Executive. The Executive may terminate the Executive's
employment hereunder (i) at any time during the Employment Term for Good Reason
(as defined below) or (ii) during the Window Period (as defined below) without
any reason.

For purposes of this Agreement, the "Window Period" shall mean the 30-day period
immediately following the first anniversary of the Effective Date as defined in
Paragraph 10(a) hereof, and "Good Reason" shall mean any of the following
(without the Executive's express written consent):

                  (i) the assignment to the Executive of any duties inconsistent
       in any respect with the Executive's position (including status, offices,
       titles, and reporting requirements), duties, functions, responsibilities,
       or authority as contemplated by Paragraph 3(a) of this Agreement, or any
       other action by the Company that results in a diminution in such
       position,

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       duties, functions, responsibilities, or authority, excluding for this
       purpose an isolated, insubstantial, and inadvertent action not taken in
       bad faith and which is remedied by the Company promptly after receipt of
       notice thereof given by the Executive;

                  (ii) any failure by the Company to comply with any of the
       provisions of Paragraph 4 of this Agreement, other than an isolated,
       insubstantial, and inadvertent action not taken in bad faith and which is
       remedied by the Company promptly after receipt of notice thereof given by
       the Executive;

                  (iii) the Company's requiring the Executive to be based at any
       office or location other than as provided in Paragraph 3(c) of this
       Agreement or the Company's requiring the Executive to travel on Company
       business to a substantially greater extent than during any period
       preceding the Effective Date;

                  (iv) any failure by the Company to comply with and satisfy
       Paragraph 17(c) of this Agreement; or

                  (v) any purported termination by the Company of the
       Executive's employment hereunder otherwise than as expressly permitted by
       this Agreement, and for purposes of this Agreement, no such purported
       termination shall be effective.

For purposes of this Paragraph 5(d), any good faith determination of "Good
Reason" made by the Executive shall be conclusive, absent manifest error.

       (e) Notice of Termination. Any termination of the Executive's employment
hereunder by the Company or by the Executive (other than a termination pursuant
to Paragraph 5(a)) shall be communicated by a Notice of Termination (as defined
below) to the other party hereto. For purposes of this Agreement, a "Notice of
Termination" shall mean a notice which (i) indicates the specific termination
provision in this Agreement relied upon, (ii) in the case of a termination for
Disability, Cause, or Good Reason, sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive's
employment under the provision so indicated, and (iii) specifies the Date of
Termination (as defined in Paragraph 5(f) below); provided, however, that,
notwithstanding any provision in this Agreement to the contrary, a Notice of
Termination given in connection with a termination for Good Reason shall be
given by the Executive within a reasonable period of time, not to exceed 120
days, following the occurrence of the event giving rise to such right of
termination. The failure by the Company or the Executive to set forth in the
Notice of Termination any fact or circumstance which contributes to a showing of
Disability, Cause, or Good Reason shall not waive any right of the Company or
the Executive hereunder or preclude the Company or the Executive from asserting
such fact or circumstance in enforcing the Company's or the Executive's rights
hereunder.

       (f) Date of Termination. For purposes of this Agreement, the "Date of
Termination" shall mean the effective date of termination of the Executive's
employment hereunder, which date shall be (i) if the Executive's employment is
terminated by the Executive's death, the date of the Executive's death, (ii) if
the Executive's employment is terminated because of the Executive's Disability,
the Disability Effective Date, (iii) if the Executive's employment is terminated
by the

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Company for Cause or by the Executive for Good Reason, the date on which the
Notice of Termination is given, (iv) if the Executive's employment is terminated
pursuant to Paragraph 2 after the occurrence of the Effective Date, the date on
which the Employment Term ends pursuant to Paragraph 2 due to a party's delivery
of a Notice of Termination thereunder, and (v) if the Executive's employment is
terminated for any other reason, the date specified in the Notice of
Termination, which date shall in no event be earlier than the date such notice
is given; provided, however, that if within 30 days after any Notice of
Termination is given, the party receiving such Notice of Termination notifies
the other party that a dispute exists concerning the termination, the Date of
Termination shall be the date on which the dispute is finally determined, either
by mutual written agreement of the parties or by a final judgment, order, or
decree of a court of competent jurisdiction (the time for appeal therefrom
having expired and no appeal having been perfected).

       6. Obligations of the Company Upon Termination.

       (a) Good Reason; Other Than for Cause, Death, or Disability. If, during
the Employment Term and prior to the Effective Date, the Company shall terminate
the Executive's employment hereunder other than for Cause or Disability or the
Executive shall terminate the Executive's employment for Good Reason:

                  (i) the Company shall pay to the Executive in a lump sum in
       cash within 30 days after the Date of Termination the aggregate of the
       following amounts:

                            (A) the sum of (1) the Executive's Base Salary
                  through the Date of Termination to the extent not theretofore
                  paid, (2) the product of (x) the greater of (I) the Target
                  Bonus for the current fiscal year of the Company and (II) the
                  Annual Bonus paid or payable, including by reason of any
                  deferral, to the Executive (and annualized for any fiscal year
                  consisting of less than 12 full months or for which the
                  Executive has been employed by the Company for less than 12
                  full months) in respect of the most recently completed fiscal
                  year of the Company during the Employment Term, if any (such
                  greater amount hereinafter referred to as the "Highest Annual
                  Bonus"), and (y) a fraction, the numerator of which is the
                  number of days in the current fiscal year through the Date of
                  Termination, and the denominator of which is 365, and (3) any
                  compensation previously deferred by the Executive (together
                  with any accrued interest or earnings thereon) and any accrued
                  vacation pay, in each case to the extent not theretofore paid
                  (the sum of the amounts described in clauses (1), (2), and (3)
                  are hereinafter referred to as the "Accrued Obligations"); and

                            (B) an amount (such amount is hereinafter referred
                  to as the "Severance Amount") equal to the sum of (1) the
                  Executive's Base Salary and (2) the Highest Annual Bonus;
                  provided, however, that if the Executive's employment
                  hereunder is terminated during the Employment Term following
                  the occurrence of the Effective Date (as defined in Paragraph
                  10(a) hereof) by the Company other than for Cause or
                  Disability or the Executive shall terminate the Executive's
                  employment either for Good Reason or without any reason during
                  the Window Period, the Company shall pay to the Executive in a
                  lump sum in cash

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                  within 30 days after the Date of Termination an amount equal
                  to the product of (1) three and (2) the sum of (x) the
                  Executive's Base Salary and (y) the Highest Annual Bonus; and

                            (C) a separate lump-sum supplemental retirement
                  benefit (the amount of such benefit hereinafter referred to as
                  the "Supplemental Retirement Amount") equal to the difference
                  between (1) the actuarial equivalent (utilizing for this
                  purpose the actuarial assumptions utilized with respect to the
                  qualified defined benefit retirement plan of the Company and
                  its affiliated companies in which the Executive is eligible to
                  participate (or any successor plan thereto) (the "Retirement
                  Plan") during the 120-day period immediately preceding the
                  Effective Date) of the benefit payable under the Retirement
                  Plan and any supplemental and/or excess retirement plan of the
                  Company and its affiliated companies providing benefits for
                  the Executive (the "SERP") which the Executive would receive
                  if the Executive's employment continued at the compensation
                  level provided for in Paragraphs 4(a) and 4(b)(i) for the
                  remainder of the Employment Term, assuming for this purpose
                  that all accrued benefits are fully vested and that benefit
                  accrual formulas are no less advantageous to the Executive
                  than those in effect during the 120-day period immediately
                  preceding the Effective Date, and (2) the actuarial equivalent
                  (utilizing for this purpose the actuarial assumptions utilized
                  with respect to the Retirement Plan during the 120-day period
                  immediately preceding the Effective Date) of the Executive's
                  actual benefit (paid or payable), if any, under the Retirement
                  Plan and the SERP; and

                  (ii) for three years after the Executives's Date of
       Termination, or such longer period as any plan, program, or arrangement
       may provide, the Company shall continue benefits to the Executive and/or
       the Executive's family at least equal to those that would have been
       provided to them in accordance with the plans, programs, and arrangements
       described in Paragraph 4(c)(ii) if the Executive's employment had not
       been terminated, in accordance with the most favorable plans, programs,
       and arrangements of the Company as in effect and applicable generally to
       the Executive's peer executives of the Company and its affiliated
       companies and their families during the 120-day period immediately
       preceding the Effective Date or, if more favorable to the Executive, as
       in effect generally at any time thereafter with respect to the
       Executive's peer executives of the Company and its affiliated companies
       and their families; provided, however, that if the Executive becomes
       reemployed with another employer and is eligible to receive medical or
       other welfare benefits under another employer provided plan, the medical
       and other welfare benefits described herein shall be secondary to those
       provided under such other plan during such applicable period of
       eligibility (such continuation of such benefits for the applicable period
       herein set forth is hereinafter referred to as "Welfare Benefit
       Continuation") (for purpose of determining eligibility of the Executive
       for retiree benefits pursuant to such plans, programs, and arrangements,
       the Executive shall be considered to have remained employed until three
       years after the Date of Termination and to have retired on the last day
       of such period); and

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                  (iii) the Company shall, at its sole expense as incurred,
       provide the Executive with outplacement services the scope and provider
       of which shall be selected by the Executive in the Executive's sole
       discretion; and

                  (iv) with respect to all options to purchase Common Stock held
       by the Executive pursuant to a Company stock option plan on or prior to
       the Date of Termination, irrespective of whether such options are then
       exercisable, the Executive shall have the right, during the 60-day period
       after the Date of Termination, to elect to surrender all or part of such
       options in exchange for a cash payment by the Company to the Executive in
       an amount equal to the number of shares of Common Stock subject to the
       Executive's option multiplied by the excess of (x) over (y), where (x)
       equals the highest reported sale price of a share of Common Stock in any
       transaction reported on the NASDAQ during the 60-day period prior to and
       including the Executive's Date of Termination and (y) equals the purchase
       price per share covered by the option. Such cash payments shall be made
       within 30 days after the date of the Executive's election; provided,
       however, that if the Executive's Date of Termination is within six months
       after the date of grant of a particular option held by the Executive and
       the Executive is subject to Section 16(b) of the Securities Exchange Act
       of 1934, as amended (the "Exchange Act"), any cash payments related
       thereto shall be made on the date which is six months and one day after
       the date of grant of such option to the extent necessary to prevent the
       imposition of the disgorgement provisions under Section 16(b).
       Notwithstanding the foregoing, if any right granted pursuant to the
       foregoing would make any change of control transaction ineligible for
       pooling of interests accounting treatment under APB No. 16 that but for
       this Section 6(a)(iv) would otherwise be eligible for such accounting
       treatment, the Executive shall receive shares of Common Stock with a fair
       market value equal to the cash that would otherwise be payable hereunder
       in substitution for the cash, provided that any such shares of Common
       Stock so delivered to the Executive shall be registered under the
       Securities Act of 1933, as amended; any options outstanding as of the
       Date of Termination and not then exercisable shall become fully
       exercisable as of the Executive's Date of Termination, and to the extent
       the Executive does not elect to surrender same for a cash payment (or the
       equivalent number of shares of Common Stock) as provided above, such
       options shall remain exercisable after the Executive's Date of
       Termination in accordance with the terms thereof; and restrictions
       applicable to any shares of Common Stock awarded to the Executive by the
       Company shall lapse, as of the date of the Executive's Date of
       Termination; and

                  (v) all club memberships and other memberships that the
       Company was providing for the Executive's use at the time Notice of
       Termination is given shall, to the extent possible, be transferred and
       assigned to the Executive at no cost to the Executive (other than income
       taxes owed), the cost of transfer, if any, to be borne by the Company;
       and

                  (vi) all benefits under the Company's [1997 Incentive Equity
       Plan] and any other similar plans, including any stock options or
       restricted stock held by the Executive, not already vested shall be 100%
       vested, to the extent such vesting is permitted under the Code; and

                                       10
<PAGE>   14

                  (vii) to the extent not theretofore paid or provided, the
       Company shall timely pay or provide to the Executive any other amounts or
       benefits required to be paid or provided or which the Executive is
       eligible to receive under any plan, program, policy, practice, or
       arrangement or contract or agreement of the Company and its affiliated
       companies (such other amounts and benefits hereinafter referred to as the
       "Other Benefits").

       (b) Death. If the Executive's employment is terminated by reason of the
Executive's death during the Employment Term, this Agreement shall terminate
without further obligations to the Executive's legal representatives under this
Agreement, other than for (i) payment of Accrued Obligations (which shall be
paid to the Executive's estate or beneficiary, as applicable, in a lump sum in
cash within 30 days of the Date of Termination) and the timely payment or
provision of the Welfare Benefit Continuation and the Other Benefits and (ii)
payment to the Executive's estate or beneficiaries, as applicable, in a lump sum
in cash within 30 days of the Date of Termination of an amount equal to the sum
of the Severance Amount and the Supplemental Retirement Amount. With respect to
the provision of Other Benefits, the term Other Benefits as used in this Section
6(b) shall include, without limitation, and the Executive's estate and/or
beneficiaries shall be entitled to receive, benefits at least equal to the most
favorable benefits provided by the Company and affiliated companies to the
estates and beneficiaries of peer executives of the Company and such affiliated
companies under such plans, programs, practices, and policies relating to death
benefits, if any, as in effect with respect to other peer executives and their
beneficiaries at any time during the 120-day period immediately preceding the
date hereof or, if more favorable to the Executive's estate and/or the
Executive's beneficiaries, as in effect on the date of the Executive's death
with respect to other peer executives of the Company and its affiliated
companies and their beneficiaries.

       (c) Disability. If the Executive's employment is terminated by reason of
the Executive's Disability during the Employment Term, this Agreement shall
terminate without further obligations to the Executive, other than for (i)
payment of Accrued Obligations (which shall be paid to the Executive in a lump
sum in cash within 30 days of the Date of Termination) and the timely payment or
provision of the Welfare Benefit Continuation and the Other Benefits and (ii)
payment to the Executive in a lump sum in cash within 30 days of the Date of
Termination of an amount equal to the sum of the Severance Amount and the
Supplemental Retirement Amount. With respect to the provision of Other Benefits,
the term Other Benefits as used in this Section 6(c) shall include, without
limitation, and the Executive shall be entitled after the Disability Effective
Date to receive, disability and other benefits at least equal to the most
favorable of those generally provided by the Company and affiliated companies to
disabled executives and/or their families in accordance with such plans,
programs, practices, and policies relating to disability, if any, as in effect
generally with respect to other peer executives and their families at any time
during the 120-day period immediately preceding the date hereof or, if more
favorable to the Executive and/or the Executive's family, as in effect at any
time thereafter generally with respect to other peer executives of the Company
and its affiliated companies and their families.

       (d) Cause; Other Than for Good Reason or During the Window Period. If the
Executive's employment is terminated for Cause during the Employment Term, this
Agreement shall terminate without further obligations to the Executive other
than the obligation to pay to the Executive Base Salary through the Date of
Termination plus the amount of any compensation previously deferred by the
Executive, in each case to the extent theretofore unpaid. If the Executive

                                       11
<PAGE>   15

voluntarily terminates the Executive's employment during the Employment Term,
excluding a termination either for Good Reason or without any reason during the
Window Period, this Agreement shall terminate without further obligations to the
Executive, other than for Accrued Obligations and the timely payment or
provision of the Other Benefits. In such case, all Accrued Obligations shall be
paid to the Executive in a lump sum in cash within 30 days of the Date of
Termination subject to applicable laws and regulations.

       7. Certain Additional Payments by the Company.

       (a) Notwithstanding any provision in this Agreement to the contrary and
except as set forth below, if it shall be determined that any payment or
distribution by the Company to or for the benefit of the Executive (whether paid
or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise, but determined without regard to any additional payments
required pursuant to this Paragraph 7) (a "Payment") would be subject to the
excise tax imposed by Section 4999 of the Code or any interest or penalties are
incurred by the Executive with respect to such excise tax (such excise tax,
together with any such interest and penalties, are hereinafter collectively
referred to as the "Excise Tax"), then the Executive shall be entitled to
receive an additional payment (a "Gross-Up Payment") in an amount such that
after payment by the Executive of all taxes (including any interest or penalties
imposed with respect to such taxes), including any income taxes (and any
interest and penalties imposed with respect thereto) and Excise Tax imposed upon
the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment
equal to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing
provisions of this Paragraph 7(a), if it shall be determined that the Executive
is entitled to a Gross-Up Payment, but that the Executive, after taking into
account the Payments and the Gross-Up Payment, would not receive a net after-tax
benefit of at least $25,000 (taking into account both income taxes and any
Excise Tax) as compared to the net after-tax proceeds to the Executive resulting
from an elimination of the Gross-Up Payment and a reduction of the Payments, in
the aggregate, to an amount (the "Reduced Amount") such that the receipt of
payments would not give rise to any Excise Tax, then no Gross-Up Payment shall
be made to the Executive and the Payments, in the aggregate, shall be reduced to
the Reduced Amount.

       (b) Subject to the provisions of Paragraph 7(c), all determinations
required to be made under this Paragraph 7, including whether and when a
Gross-Up Payment is required and the amount of such Gross-Up Payment and the
assumptions to be utilized in arriving at such determination, shall be made by
Arthur Andersen & Co. (the "Accounting Firm") or, as provided below, such other
certified public accounting firm as may be designated by the Executive, which
shall provide detailed supporting calculations both to the Company and the
Executive within 15 business days after the receipt of notice from the Executive
that there has been a Payment, or such earlier time as is requested by the
Company. If the Accounting Firm is serving as accountant or auditor for the
individual, entity, or group effecting the Change of Control, the Executive
shall have the option, in the Executive's sole discretion, to appoint another
nationally recognized accounting firm to make the determinations required
hereunder (which accounting firm shall then be referred to as the Accounting
Firm hereunder). All fees and expenses of the Accounting Firm shall be borne
solely by the Company. Any Gross-Up Payment, as determined pursuant to this
Paragraph 7, shall be paid by the Company to the Executive within five days of
the receipt of the Accounting Firm's determination. If the Accounting Firm
determines that no Excise Tax is payable by the Executive, it shall furnish the
Executive with a written opinion that failure to report the Excise Tax on the
Executive's applicable

                                       12
<PAGE>   16

federal income tax return would not result in the imposition of a negligence or
similar penalty. Any determination by the Accounting Firm shall be binding upon
the Company and the Executive. As a result of the uncertainty in the application
of Section 4999 of the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that Gross-Up Payments that will not
have been made by the Company should have been made ("Underpayment"), consistent
with the calculations required to be made hereunder. If the Company exhausts its
remedies pursuant to Paragraph 7(c) and the Executive thereafter is required to
make a payment of any Excise Tax, the Accounting Firm shall determine the amount
of the Underpayment that has occurred and any such Underpayment shall be
promptly paid by the Company to or for the benefit of the Executive.

       (c) The Executive shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the
Company of the Gross-Up Payment (or an additional amount of Gross-Up Payment) in
the event the Internal Revenue Service seeks higher payment. Such notification
shall be given as soon as practicable but no later than 10 business days after
the Executive is informed in writing of such claim and shall apprise the Company
of the nature of such claim and the date on which such claim is requested to be
paid. The Executive shall not pay such claim prior to the expiration of the
30-day period following the date on which it gives such notice to the Company
(or such shorter period ending on the date that any payment of taxes with
respect to such claim is due). If the Company notifies the Executive in writing
prior to the expiration of such period that it desires to contest such claim,
the Executive shall:

                  (i) give the Company any information reasonably requested by
       the Company relating to such claim;

                  (ii) take such action in connection with contesting such claim
       as the Company shall reasonably request in writing from time to time,
       including the acceptance of legal representation with respect to such
       claim by an attorney reasonably selected by the Company;

                  (iii) cooperate with the Company in good faith in order
       effectively to contest such claim; and

                  (iv) permit the Company to participate in any proceedings
       relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation of the foregoing provisions of
this Paragraph 7(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals, proceedings, hearings, and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction, and in one or more appellate courts, as the Company shall
determine;

                                       13
<PAGE>   17

provided, however, that if the Company directs the Executive to pay such claim
and sue for a refund, the Company shall advance the amount of such payment to
the Executive, on an interest-free basis, and shall indemnify and hold the
Executive harmless, on an after-tax basis, from any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to
such advance or with respect to any imputed income with respect to such advance;
and provided further that any extension of the statute of limitations relating
to payment of taxes for the taxable year of the Executive with respect to which
such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company's control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Executive shall be entitled to settle or contest, as the case may be, any
other issue raised by the Internal Revenue Service or any other taxing
authority.

       (d) If, after the receipt by the Executive of an amount advanced by the
Company pursuant to Paragraph 7(c), the Executive becomes entitled to receive
any refund with respect to such claim, the Executive shall (subject to the
Company's complying with the requirements of Paragraph 7(c)) promptly pay to the
Company the amount of such refund (together with any interest paid or credited
thereon after taxes applicable thereto). If, after the receipt by the Executive
of an amount advanced by the Company pursuant to Paragraph 7(c), a determination
is made that the Executive shall not be entitled to any refund with respect to
such claim and the Company does not notify the Executive in writing of its
intent to contest such denial of refund prior to the expiration of 30 days after
such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the extent
thereof, the amount of Gross-Up Payment required to be paid.

       8. Representations and Warranties.

       (a) The Company represents and warrants to the Executive that the
execution, delivery, and performance by the Company of this Agreement have been
duly authorized by all necessary corporate action of the Company and do not and
will not conflict with or result in a violation of any provision of, or
constitute a default under, any contract, agreement, instrument, or obligation
to which the Company is a party or by which it is bound.

       (b) The Executive represents and warrants to the Company that the
execution, delivery, and performance by the Executive of this Agreement do not
and will not conflict with or result in a violation of any provision of, or
constitute a default under, any contract, agreement, instrument, or obligation
to which the Executive is a party or by which the Executive is bound.

       9. Confidential Information. The Executive recognizes and acknowledges
that the Company's trade secrets and other confidential or proprietary
information, as they may exist from time to time, are valuable, special, and
unique assets of the Company's business, access to and knowledge of which are
essential to the performance of the Executive's duties hereunder. The Executive
confirms that all such trade secrets and other information constitute the
exclusive property of the Company. During the Employment Term and thereafter
without limitation of time, the Executive shall hold in strict confidence and
shall not, directly or indirectly, disclose or reveal to any person, or use for
the Executive's own personal benefit or for the benefit of anyone else, any
trade secrets, confidential dealings, or other confidential or proprietary
information of any kind, nature, or

                                       14
<PAGE>   18

description (whether or not acquired, learned, obtained, or developed by the
Executive alone or in conjunction with others) belonging to or concerning the
Company or any of its affiliated companies, except (i) with the prior written
consent of the Company duly authorized by its Board, (ii) in the course of the
proper performance of the Executive's duties hereunder, (iii) for information
(x) that becomes generally available to the public other than as a result of
unauthorized disclosure by the Executive or the Executive's affiliates or (y)
that becomes available to the Executive on a nonconfidential basis from a source
other than the Company or its affiliated companies who is not bound by a duty of
confidentiality, or other contractual, legal, or fiduciary obligation, to the
Company, or (iv) as required by applicable law or legal process. The provisions
of this Paragraph 9 shall continue in effect notwithstanding termination of the
Executive's employment hereunder for any reason.

       10. Certain Definitions.

       (a) Effective Date. The "Effective Date" shall mean the first date during
the Change of Control Period (as defined in Paragraph 10(b)) on which a Change
of Control occurs. Notwithstanding anything in this Agreement to the contrary,
if a Change of Control occurs and if the Executive's employment with the Company
is terminated prior to the date on which the Change of Control occurs, and if it
is reasonably demonstrated by the Executive that such termination of employment
(i) was at the request of a third party who has taken steps reasonably
calculated to effect a Change of Control or (ii) otherwise arose in connection
with or anticipation of a Change of Control, then for all purposes of this
Agreement the "Effective Date" shall mean the date immediately prior to the date
of such termination of employment.

       (b) Change of Control Period. The "Change of Control Period" shall mean
the period commencing on the date on which a Change of Control occurs and ending
on the second anniversary of such date; provided, however, that commencing on
the date one year after the Effective Date, and on each annual anniversary of
such date (such date and each annual anniversary thereof herein referred to as
the "Renewal Date"), the Change of Control Period shall be automatically
extended so as to terminate two years after such Renewal Date, unless at least
60 days prior to the Renewal Date the Company shall give notice to the Executive
that the Change of Control Period shall not be so extended.

       (c) Change of Control. For purposes of this Agreement, a "Change of
Control" shall mean:

                  (i) the acquisition by any individual, entity, or group
       (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act)
       (a "Person") of beneficial ownership (within the meaning of Rule 13d-3
       promulgated under the Exchange Act) of 15% or more of either (A) the then
       outstanding shares of common stock of the Company (the "Outstanding
       Company Common Stock") or (B) the combined voting power of the then
       outstanding voting securities of the Company entitled to vote generally
       in the election of directors (the "Outstanding Company Voting
       Securities"); provided, however, that for purposes of this subparagraph
       (c)(i), consummation of the transactions contemplated by the Company's
       Registration Statement on Form S-2 filed with the Securities and Exchange
       Commission on July 21, 2000, and the following acquisitions shall not
       constitute a Change

                                       15
<PAGE>   19

of Control: (w) any acquisition directly from the Company (excluding an
acquisition by virtue of the exercise of a conversion privilege), (x) any
acquisition by the Company, (y) any acquisition by any employee benefit plan (or
related trust) sponsored or maintained by the Company or any corporation
controlled by the Company, or (z) any acquisition by any corporation pursuant to
a reorganization, merger, or consolidation, if, following such reorganization,
merger, or consolidation, the conditions described in clauses (A), (B), and (C)
of subparagraph (iii) of this Paragraph 10 (c) are satisfied; or

          (ii) individuals who, as of the date of this Agreement, constitute the
Board (the "Incumbent Board") cease for any reason to constitute a majority of
the Board; provided, however, that any individual becoming a director subsequent
to the date hereof whose election, or nomination for election by the Company's
stockholders, was approved by a vote of a majority of the directors then
comprising the Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this purpose, any such
individual whose initial assumption of office occurs as a result of either an
actual or threatened election contest or other actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the Board; or

          (iii) consummation of a reorganization, merger, or consolidation of
the Company, with or without approval by the stockholders of the Company, in
each case, unless, following such reorganization, merger, or consolidation, (A)
more than 50% of, respectively, the then outstanding shares of common stock of
the corporation resulting from such reorganization, merger, or consolidation and
the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities
immediately prior to such reorganization, merger, or consolidation in
substantially the same proportions as their ownership, immediately prior to such
reorganization, merger, or consolidation, of the Outstanding Company Common
Stock and Outstanding Company Voting Securities, as the case may be, (B) no
Person (excluding the Company, any employee benefit plan (or related trust) of
the Company or such corporation resulting from such reorganization, merger, or
consolidation, and any Person beneficially owning, immediately prior to such
reorganization, merger, or consolidation, directly or indirectly, 15% or more of
the Outstanding Company Common Stock or Outstanding Company Voting Securities,
as the case may be) beneficially owns, directly or indirectly, 15% or more of,
respectively, the then outstanding shares of common stock of the corporation
resulting from such reorganization, merger, or consolidation or the combined
voting power of the then outstanding voting securities of such corporation
entitled to vote generally in the election of directors, and (C) a majority of
the members of the board of directors of the corporation resulting from such
reorganization, merger, or consolidation were members of the Incumbent Board at
the time of the execution of the initial agreement providing for such
reorganization, merger, or consolidation; or

          (iv) consummation of a sale or other disposition of all or
substantially all the assets of the Company, with or without approval by the
stockholders of the Company, other than to a corporation, with respect to which
following such sale or other disposition,

                                       16
<PAGE>   20

       (A) more than 50% of, respectively, the then outstanding shares of common
       stock of such corporation and the combined voting power of the then
       outstanding voting securities of such corporation entitled to vote
       generally in the election of directors is then beneficially owned,
       directly or indirectly, by all or substantially all the individuals and
       entities who were the beneficial owners, respectively, of the Outstanding
       Company Common Stock and Outstanding Company Voting Securities
       immediately prior to such sale or other disposition in substantially the
       same proportion as their ownership, immediately prior to such sale or
       other disposition, of the Outstanding Company Common Stock and
       Outstanding Company Voting Securities, as the case may be, (B) no Person
       (excluding the Company, any employee benefit plan (or related trust) of
       the Company or such corporation, and any Person beneficially owning,
       immediately prior to such sale or other disposition, directly or
       indirectly, 15% or more of the Outstanding Company Common Stock or
       Outstanding Company Voting Securities, as the case may be) beneficially
       owns, directly or indirectly, 15% or more of, respectively, the then
       outstanding shares of common stock of such corporation or the combined
       voting power of the then outstanding voting securities of such
       corporation entitled to vote generally in the election of directors, and
       (C) a majority of the members of the board of directors of such
       corporation were members of the Incumbent Board at the time of the
       execution of the initial agreement or action of the Board providing for
       such sale or other disposition of assets of the Company; or

                  (v) approval by the stockholders of the Company of a complete
       liquidation or dissolution of the Company.

       11. Full Settlement.

       (a) There shall be no right of set off or counterclaim against, or delay
in, any payments to the Executive, or to the Executive's heirs or legal
representatives, provided for in this Agreement, in respect of any claim against
or debt or other obligation of the Executive or others, whether arising
hereunder or otherwise.

       (b) In no event shall the Executive be obligated to seek other employment
or take any other action by way of mitigation of the amounts payable to the
Executive under any of the provisions of this Agreement, and such amounts shall
not be reduced whether or not the Executive obtains other employment.

       (c) The Company agrees to pay as incurred, to the full extent permitted
by law, all costs and expenses (including attorneys' fees) that the Executive,
or the Executive's heirs or legal representatives, may reasonably incur as a
result of any contest (regardless of the outcome thereof) by the Company, the
Executive, or others of the validity or enforceability of, or liability under,
any provision of this Agreement, or any guarantee of performance thereof
(including as a result of any contest by the Executive, or the Executive's heirs
or legal representatives, about the amount of any payment pursuant to this
Agreement), plus in each case interest on any delayed payment at the applicable
federal rate provided for in Section 7872(f)(2) of the Code.

       12. No Effect on Other Contractual Rights. The provisions of this
Agreement, and any payment provided for hereunder, shall not reduce any amounts
otherwise payable to the Executive,

                                       17
<PAGE>   21

or in any way diminish the Executive's rights as an employee of the Company,
whether existing on the date of this Agreement or hereafter, under any employee
benefit plan, program, or arrangement or other contract or agreement of the
Company providing benefits to the Executive.

       13. Indemnification; Directors and Officers Insurance. The Company shall
(a) during the Employment Term and thereafter without limitation of time,
indemnify and advance expenses to the Executive to the fullest extent permitted
by the laws of the State of Delaware from time to time in effect and (b) during
the Employment Term, acquire and maintain directors and officers liability
insurance covering the Executive (and to the extent the Company desires, other
directors and officers of the Company and its affiliated companies) to the
extent it is available at commercially reasonable rates as determined by the
Board; provided, however, that in no event shall the Executive be entitled to
indemnification or advancement of expenses under this Paragraph 13 with respect
to any proceeding, or matter therein, brought or made by the Executive against
the Company other than one initiated by the Executive to enforce the Executive's
rights under this Paragraph 13. The rights of indemnification and to receive
advancement of expenses as provided in this Paragraph 13 shall not be deemed
exclusive of any other rights to which the Executive may at any time be entitled
under applicable law, the certificate of incorporation or bylaws of the Company,
any agreement, a vote of stockholders, a resolution of the Board, or otherwise.
The provisions of this Paragraph 13 shall continue in effect notwithstanding
termination of the Executive's employment hereunder for any reason, including,
without limitation, Executive's voluntary termination. In furtherance thereof,
and not by way of limitation, the Company shall reimburse Executive for all
reasonable legal fees and expenses incurred by Executive (i) in the preparation
of this Agreement and (ii) in connection with Executive's obtaining and
enforcing any right or benefit provided by this Agreement. The reimbursement of
such legal fees and expenses shall be made within 30 days after Executive's
request for payment accompanied by evidence of the fees and expenses incurred.
For a period of ten years after the termination, for any reason, of Executive's
employment with the Company, the Company shall indemnify, hold harmless and
defend Executive, to the fullest extent permitted by applicable law, from and
against any loss, cost or expense related to or arising out of any action or
claim with respect to (i) the Company or its affiliated companies or (ii) any
action taken or omitted by the Executive (INCLUDING, BUT NOT LIMITED TO, MATTERS
THAT CONSTITUTE NEGLIGENCE OF THE EXECUTIVE) for or on behalf of the Company or
its affiliated companies, whether, in either case, such action or claim, or the
facts and circumstances giving rise thereto, occurred or accrued before or after
such termination of employment.

       14. Injunctive Relief. In recognition of the fact that a breach by the
Executive of any of the provisions of Paragraph 9 will cause irreparable damage
to the Company for which monetary damages alone will not constitute an adequate
remedy, the Company shall be entitled as a matter of right (without being
required to prove damages or furnish any bond or other security) to obtain a
restraining order, an injunction, an order of specific performance, or other
equitable or extraordinary relief from any court of competent jurisdiction
restraining any further violation of such provisions by the Executive or
requiring the Executive to perform the Executive's obligations hereunder. Such
right to equitable or extraordinary relief shall not be exclusive but shall be
in addition to all other rights and remedies to which the Company may be
entitled at law or in equity, including without limitation the right to recover
monetary damages for the breach by the Executive of any of the provisions of
this Agreement.

                                       18
<PAGE>   22

       15. Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Texas, without regard to
the principles of conflicts of laws thereof.

       16. Notices. All notices, requests, demands, and other communications
required or permitted to be given or made hereunder by either party hereto shall
be in writing and shall be deemed to have been duly given or made (i) when
delivered, or (ii) five days after being deposited in the United States mail,
first class registered or certified mail, postage prepaid, return receipt
requested, to the party for which intended at the following addresses (or at
such other addresses as shall be specified by the parties by like notice, except
that notices of change of address shall be effective only upon receipt):

               If to the Company, at:        DevX Energy, Inc.
                                             13760 Noel Road, Suite 1030
                                             Dallas, Texas  75240-7336
                                             Attention: Chief Executive Officer

               If to the Executive, at:      Joseph T. Williams
                                             6239 Stefani Drive
                                             Dallas, Texas  75225

       17. Binding Effect; Assignment; No Third Party Benefit.

       (a) This Agreement is personal to the Executive and without the prior
written consent of the Company shall not be assignable by the Executive
otherwise than by will or the laws of descent and distribution. This Agreement
shall inure to the benefit of and shall be enforceable by the Executive's legal
representatives.

       (b) This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns.

       (c) The Company shall require any successor or assign (whether direct or
indirect, by purchase, merger, consolidation, or otherwise) to all or
substantially all the business and/or assets of the Company, by agreement in
writing in form and substance reasonably satisfactory to the Executive,
expressly, absolutely, and unconditionally to assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession or assignment had taken place. As
used in this Agreement, the "Company" shall mean the Company as hereinbefore
defined and any successor or assign to its business and/or assets as aforesaid
which executes and delivers the agreement provided for in this Paragraph 17(c)
or which otherwise becomes bound by all the terms and provisions of this
Agreement by operation of law.

       (d) Nothing in this Agreement, express or implied, is intended to or
shall confer upon any person other than the parties hereto, and their respective
heirs, legal representatives, successors, and permitted assigns, any rights,
benefits, or remedies of any nature whatsoever under or by reason of this
Agreement.

                                       19
<PAGE>   23

       18. Miscellaneous.

       (a) Amendment. This Agreement may not be modified or amended in any
respect except by an instrument in writing signed by the party against whom such
modification or amendment is sought to be enforced. No person, other than
pursuant to a resolution of the Board or a committee thereof, shall have
authority on behalf of the Company to agree to modify, amend, or waive any
provision of this Agreement or anything in reference thereto.

       (b) Waiver. Any term or condition of this Agreement may be waived at any
time by the party hereto which is entitled to have the benefit thereof, but such
waiver shall only be effective if evidenced by a writing signed by such party,
and a waiver on one occasion shall not be deemed to be a waiver of the same or
any other type of breach on a future occasion. No failure or delay by a party
hereto in exercising any right or power hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right or power.

       (c) Withholding Taxes. The Company may withhold from any amounts payable
under this Agreement such federal, state, local, or foreign taxes as shall be
required to be withheld pursuant to any applicable law or regulation.

       (d) Nonalienation of Benefits. The Executive shall not have any right to
pledge, hypothecate, anticipate, or in any way create a lien upon any payments
or other benefits provided under this Agreement; and no benefits payable
hereunder shall be assignable in anticipation of payment either by voluntary or
involuntary acts, or by operation of law, except by will or pursuant to the laws
of descent and distribution.

       (e) Severability. If any provision of this Agreement is held to be
invalid or unenforceable, (a) this Agreement shall be considered divisible, (b)
such provision shall be deemed inoperative to the extent it is deemed invalid or
unenforceable, and (c) in all other respects this Agreement shall remain in full
force and effect; provided, however, that if any such provision may be made
valid or enforceable by limitation thereof, then such provision shall be deemed
to be so limited and shall be valid and/or enforceable to the maximum extent
permitted by applicable law.

       (f) Entire Agreement. This Agreement constitutes the entire agreement
between the parties hereto concerning the subject matter hereof, and from and
after the date of this Agreement, this Agreement shall supersede any other prior
agreement or understanding, both written and oral, between the parties with
respect to such subject matter.

       (g) Captions. The captions herein are inserted for convenience of
reference only, do not constitute a part of this Agreement, and shall not affect
in any manner the meaning or interpretation of this Agreement.

       (h) References. All references in this Agreement to Paragraphs,
subparagraphs, and other subdivisions refer to the Paragraphs, subparagraphs,
and other subdivisions of this Agreement unless expressly provided otherwise.
The words "this Agreement", "herein", "hereof", "hereby", "hereunder", and words
of similar import refer to this Agreement as a whole and not to any particular

                                       20
<PAGE>   24

subdivision unless expressly so limited. Whenever the words "include",
"includes", and "including" are used in this Agreement, such words shall be
deemed to be followed by the words "without limitation". Words in the singular
form shall be construed to include the plural and vice versa, unless the context
otherwise requires.

       IN WITNESS WHEREOF, the Company has caused this Agreement to be executed
on its behalf by its duly authorized officer, and the Executive has executed
this Agreement, as of the date first above set forth.

                                      DEVX ENERGY, INC.

                                      By:  /s/ EDWARD J. MUNDEN
                                           ------------------------------------
                                      Name:    Edward J. Munden
                                            -----------------------------------
                                      Title:  Chief Executive Officer and
                                              President
                                             ----------------------------------

                                                                       "COMPANY"
                                      /s/ JOSEPH T. WILLIAMS
                                      ------------------------------------------
                                      Joseph T. Williams

                                                                     "EXECUTIVE"

                                      21<PAGE>   1

                                                                   EXHIBIT 10.23

                                RELEASE AGREEMENT

This Release Agreement ("Agreement") is made and entered into by and between
Queen Sands Resources (Canada) Inc., ("QSRc") and Queen Sand Resources, Inc. a
Delaware company ("QSRd") and Ronald I. Benn, ("Benn" or "Employee").

WHEREAS, QSRc is a wholly owned subsidiary of QSRd; and

WHEREAS, The common stock of QSRd is a publicly traded in the Over-The-Counter
Bulletin Board of the Nasdaq stock market; and

WHEREAS, The Employee has been employed by QSRc under a contract of employment
dated December 15, 1997 (the "Contract") and, pursuant to the Contract, has
served as Executive Vice-President and Chief Financial Officer of QSRd and Queen
Sand Resources, Inc., a Nevada company ("QSRn") and Queen Sand Operating Co., a
Nevada Company ("QSROPCO") and QSRc, QSRd, QSRn and QSROPCO shall be
collectively referred to herein as the "Company Group"; and

WHEREAS, QSRd is the guarantor of all obligations of QSRc under the Contract;
and

WHEREAS, Employee and the QSRc have agreed that Employee will cease his
employment with QSRc and resign all positions with QSRd and all other members of
the Company Group; and

WHEREAS, the parties have agreed to resolve any and all potential disputes,
claims, or causes of action which have or may have arisen between them and
growing out of

<PAGE>   2

Employee's employment with QSRc and his positions with QSRd and any other member
of the Company Group;

NOW, THEREFORE, in consideration of the following mutual promises, payments and
conditions contained in this Agreement, and effective on the eighth day
following Employee's execution of this Agreement ("Effective Date"), the parties
voluntarily agree as follows:

1.   Severance Date. Employee's employment with QSR has ended as of September
     15, 2000 ("Last Day Worked").

2.   Resignation. Employee hereby resigns from all officer and employment
     positions with the QSRc, QSRd and every other member of the Company Group
     effective as of 5:00 p.m. EDT on the Last Day Worked. Each member of the
     Company Group hereby accepts the Employee's resignations.

3.   Severance Payment. QSRc will pay the Employee a lump sum severance payment
     in the amount of US$200,000 less all federal, provincial or state taxes as
     may be required by law to be withheld therefrom.

4.   Timing of Payment. QSRc shall pay the severance payment by cheque on the
     eighth day following receipt of this agreement duly signed by the Employee.

5.   Medical and Other Benefits. QSRc shall maintain until June 30 2002 for the
     continued benefit of the Employee coverage under those of its medical,
     dental and life insurance plans as are specified on Schedule A. Any
     benefits not specifically stated on Schedule A shall cease on Employee's
     Last Day Worked. Employee acknowledges and agrees that, because he is a
     Canadian resident and citizen, no member of the Company Group is required
     to maintain or pay for any health care or

<PAGE>   3

     other benefit programs for or on account of the Employee pursuant to the
     Consolidated Omnibus Budget Reconciliation Act of 1985, as amended,
     ("COBRA").

6.   Covenant of Confidentiality. All documents, records, techniques, business
     secrets and other information, including the terms of this Agreement and
     any and all documents leading to or resulting from this Agreement, which
     have or will come into Employee's possession regarding the Company Group or
     any member thereof shall be deemed to be confidential and proprietary to
     the Company Group, and its sole and exclusive property. Employee agrees
     that Employee will keep confidential and not divulge to any other party
     said confidential information and business secrets, including, but not
     limited to, such matters as costs, profits, markets, sales, products,
     product lines, key personnel, pricing policies, operational methods,
     customers, customer requirements, suppliers, plans for future developments,
     and other business affairs and methods and other information not readily
     available to the public, except as required by law. Additionally, Employee
     agrees that upon Employee's termination of employment, Employee shall
     promptly return to the Company Group any and all confidential and
     proprietary information that is in Employee's possession. Each member of
     the Company Group agrees to keep the terms of this Agreement confidential
     and not divulge such terms to any other party except as required by law.

7.   Covenant of Cooperation. Employee agrees to cooperate with the Company
     Group in ensuring an orderly transition under a replacement Chief Financial
     Officer and in resolving or pursuing any litigation or administrative
     proceedings involving any matters with which Employee was involved during
     Employee's employment with QSRc or his relationship or position with any
     and all members of Company Group. For such purpose, Benn agrees to make
     himself available at the offices of QSRc and at the rate of $1,000 per day
     as QSRC may reasonably request from time to time during the three (3) month
     period following the Last Day Worked. The rate applicable to any period
     thereafter shall be as the parties may hereafter agree. The parties
     acknowledge and agree that no such request, service or payment shall be
     construed as making Benn an employee of QSRc or any member of the Company

<PAGE>   4

     Group and provided further that QSRc shall be under no obligation to
     actually make any such request.

8.   Covenant of Non-Solicitation. Employee agrees that for the period of one
     year following the Last Day Worked, he will not solicit or induce or
     attempt to solicit or induce on behalf of himself or any other person or
     entity, any employee of any member of the Company Group, to terminate such
     employee's employment with the particular member of the Company Group as
     the case may be.

9.   Mutual Release. In consideration of the mutual covenants contained herein,
     the Employee forever and unconditionally releases and discharges the
     Company Group, and each of member thereof and their respective owners,
     directors, officers, employees, assigns, representatives or agents, and the
     Company Group, and member thereof and each of their respective owners,
     directors, officers, employees, assigns, representatives or agents, forever
     and unconditionally releases and discharges the Employee from any and all
     claims, complaints, or causes of action relating to or arising out of
     Employee's employment or any and all of his executive officer positions
     with any member of the Company Group. Such release encompasses, but is not
     limited to, any and all claims by Employee for wages, salary, bonuses, or
     other benefits of employment under the Contract or otherwise. Such release
     also encompasses, but is not limited to, all claims under U.S. or Canadian
     federal, provincial or state tort or common law, express or implied
     contract or any U.S. or Canadian federal, provincial, state, or local
     statutes. Such release does not encompass the obligations of the parties
     under this agreement.

10.  Indemnity. QSRc and QSRd shall indemnify, to the full extent authorized by
     the laws of their respective incorporating jurisdictions the Employee and
     his heirs, executives, administrators and legal representatives, from any
     and all suits, claims, actions, demands or proceedings of any kind to which
     the Employee is named or in respect of which he may be or become liable by
     reason of the fact that he is or was a director, officer or employee of any
     member of the Company Group or by reason of the fact that he is or was the
     representative of the Company or any member of the Company Group on any
     other corporation, trust, joint

<PAGE>   5

     venture or enterprise not part of the Company Group or serving such other
     entity in any capacity at the Company's request.

11.  Mutual Waiver of Rights. Each Party further agrees that it will not file
     any complaint, petition, or lawsuit against the other Party with any state
     or federal court, except for any such lawsuit specifically required for
     such Parties' enforcement of this Agreement. If either Party or anyone
     acting on its behalf files any such lawsuit, petition, complaint, or if any
     court assumes jurisdiction of any lawsuit, petition or complaint charge
     against either Party regarding or involving Employee's employment with QSRc
     or his position with any other member of the Company Group, the filing
     party will immediately request such agency or court to withdraw from the
     matter and dismiss said action. The filing Party will also reimburse the
     other Party for all costs, including attorneys' fees, incurred as a result
     of such complaint, petition, lawsuit, or charge.

12.  Mutual Non-Admission. This Agreement shall not in any way be construed as
     an admission by either Party of any illegal act(s) or violation of any
     federal, provincial, state, or local statute, law, ordinance, or of any
     breach of any express or implied contract or any right whatsoever against
     the other Party or any other person. The Parties further specifically
     disclaim any such illegal, or wrongful act or violation against the other
     Party or any other person.

13.  Entire Agreement. Each Party represents and acknowledges that in executing
     this Agreement it does not rely and has not relied upon any prior
     representations or prior agreements, written, verbal, express or implied,
     made by the other Party or its employees, officers, agents,
     representatives, or attorneys concerning the subject matter of this
     Agreement.

14.  Binding on Parties. This Agreement shall be binding upon the parties and
     their respective heirs, third party beneficiaries, administrators,
     representatives, executors, successors, assigns and affiliated entities.

<PAGE>   6

15.  Specific Remedy. As a further material inducement to enter into this
     Agreement, a party breaching this Agreement must reimburse the
     non-breaching party for any and all loss, cost, damage or expense,
     including without limitation, attorneys' fees arising out of any such
     breach of this Agreement. In addition, any breach of this Agreement will
     entitle the non-breaching party to seek injunctive relief and to recover
     any actual damages incurred as a result of such breach.

16.  Severability. Should any provision of this Agreement be declared to be or
     determined to be illegal or invalid, the validity of the remaining parts of
     this Agreement will not be affected.

17.  Revocation Period. The parties agree that Benn may revoke this Agreement
     within seven (7) days from the date of his execution of this Agreement.

18.  Advice By Employee's signature below, he represents and confirms that he:
     (a) has read this Agreement carefully and completely, (b) has been given a
     period of at least twenty-one (21) days to consider and review this
     Agreement, (c) has been informed of his right to consult with legal and
     financial counsel and has had ample opportunity to do so (d) understands
     and agrees to all the provisions contained in this Agreement, and (e) is
     signing freely and voluntarily, without duress, coercion or undue
     influence.

            THE REST OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.

<PAGE>   7

SIGNED IN OTTAWA ONTARIO CANADA ON THE 15TH DAY OF SEPTEMBER, 2000.

EMPLOYEE

/s/ RONALD I. BENN
-----------------------------
By: Ronald I. Benn

QUEEN SANDS RESOURCES (CANADA) INC.

By:    /s/ EDWARD J. MUNDEN
       -----------------------------
Name:  Edward J. Munden

Title: Director

SIGNED IN DALLAS, TEXAS ON THE 15TH DAY OF SEPTEMBER, 2000

QUEEN SANDS RESOURCES INC. (DELAWARE)

By:    /s/ ROBERT P. LINDSAY
       -----------------------------
Name:  Robert P. Lindsay

Title: Director

QUEEN SANDS RESOURCES INC. (NEVADA)

By:    /s/ ROBERT P. LINDSAY
       -----------------------------
Name:  Robert P. Lindsay
Title: Executive Vice-President, COO

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