Document:

Exhibit
10.1

VOTING
AGREEMENT

THIS VOTING AGREEMENT, dated as
of January 19, 2007 (this “Agreement”), is between Sterling Energy plc., a
company incorporated in England and Wales (“Buyer”), and the other party
signatory hereto (the “Stockholder”).

WHEREAS, Whittier Energy
Corporation, a Nevada corporation (the “Company”), Buyer and a subsidiary to be
formed by Buyer (“Merger Sub”) have entered into an Agreement and Plan of
Merger, dated as of the date hereof (the “Merger Agreement”), pursuant to
which, among other things, Merger Sub will be merged with and into the Company,
with the Company surviving as a wholly-owned subsidiary of Buyer (the “Merger”)
and each issued and outstanding share (other than Dissenting Shares) of Company
Common Stock will be converted into the right to receive the Merger
Consideration;

WHEREAS, as of the date hereof
the Stockholder owns of record, and has the right to vote and transfer the
number of such shares of Company Common Stock set forth beside such Stockholder’s
name on the signature page hereto (such shares of Company Common Stock,
together with any other shares of Company Common Stock acquired by such
Stockholder by purchase or otherwise from the date hereof through the
termination of this Agreement, are collectively referred to herein as the “Shares”);

WHEREAS, as a condition and
inducement to Buyer’s willingness to enter into the Merger Agreement, Buyer has
requested that the Stockholder agree to enter into this Agreement; and

WHEREAS, capitalized terms used
herein and not otherwise defined shall have the meanings assigned to such terms
in the Merger Agreement.

NOW, THEREFORE, the parties
hereto agree as follows:

ARTICLE 1.

VOTING AGREEMENT; GRANT OF PROXY

Section 1.01           Voting Agreement.  (a) During the Term (as defined below) of
this Agreement, Stockholder hereby irrevocably and unconditionally agrees to
vote or cause to be voted all Shares that such Stockholder is entitled to vote
to approve and adopt the Merger Agreement, the Merger and the transactions
contemplated thereby (collectively, the “Proposed Transaction”) at any annual
or special meeting of the stockholders of the Company, and at any adjournment
thereof, at which the Proposed Transaction is submitted for the consideration
and vote of the stockholders of the Company (“Company Stockholder Meeting”).

(b)           Stockholder hereby agrees that it
shall vote or cause to be voted its Shares against the approval of (i) any
Alternative Transaction Proposal, (ii) any extraordinary dividend or
distribution by the Company or any of the Company Subsidiaries, (iii) any
change in the capital structure of the Company or any of the Company
Subsidiaries (other than pursuant to the Merger Agreement), (iv) any merger,
consolidation, sale of assets, business combination, share exchange, reorganization
or recapitalization of the Company or any of the Company 

Subsidiaries, with or involving any party other than
as contemplated by the Merger Agreement, (v) any liquidation or winding up of
the Company, (vi) any change in the composition or membership of the
Company’s Board of Directors, other than as permitted by the Merger Agreement,
and (vii) any other action that may reasonably be expected to impede,
interfere with, delay, postpone or discourage the consummation of the Proposed
Transaction or result in a breach of any of the covenants, representations,
warranties or other obligations or agreements of the Company under the Merger
Agreement, that would adversely affect the Company or Bidder or their
respective abilities to consummate the transactions contemplated by the Merger
Agreement.

(c)           Stockholder hereby agrees that any
agreement between or among the other holders of Company Common Stock or any of
them that could be construed to limit its rights to enter into this Agreement,
perform hereunder, or restrict the Company’s ability to consummate the Merger
is amended to the full extent necessary to assure that entering into this
Agreement and performance hereunder are permitted under each such agreement
without breach thereof.

Section 1.02           Irrevocable Proxy.  
Stockholder hereby irrevocably and unconditionally revokes any and all previous
proxies granted with respect to its Shares. 
By entering into this Agreement, Stockholder hereby irrevocably and
unconditionally grants a proxy appointing a designee of Buyer (“Designee”) as
such Stockholder’s attorney-in-fact and proxy, with full power of substitution,
for and in such Stockholder’s name, to vote, express consent or dissent, or
otherwise to utilize such voting power on the matters described in Section 1.01
as Designee or its proxy or substitute shall, in Designee’s sole discretion,
deem proper with respect to Stockholder’s Shares.  The proxy granted by Stockholder pursuant to
this Section 1.02 is coupled with an interest and is irrevocable and is granted
in consideration of Buyer’s entering into this Agreement and the Merger
Agreement and incurring certain related fees and expenses.  The Stockholder hereby ratifies and approves
of each and every action taken by a Designee pursuant to the foregoing proxy.  Stockholder shall perform such further acts
and execute such further documents as may be required to vest in Designee the
sole power to vote such Stockholder’s Shares. 
Notwithstanding the foregoing, the proxy granted by Stockholder shall
terminate at the end of the Term.

ARTICLE 2.

REPRESENTATIONS AND WARRANTIES OF STOCKHOLDERS

Each Stockholder, severally and not jointly,
represents and warrants to Buyer that:

Section 2.01           Authorization.  (a) If Stockholder is not an individual, the
Stockholder has full legal power, authority and right to execute, deliver and
perform its obligations under this Agreement. 
This Agreement has been duly and validly executed and delivered by the
Stockholder, and the Agreement and the transactions contemplated hereby have been
duly authorized by all necessary corporate or similar action.  This Agreement constitutes a valid and
binding Agreement of such Stockholder, enforceable against the Stockholder in
accordance with its terms.

(b)           If Stockholder is married and the
Shares set forth on the signature page hereto opposite such Stockholder’s name
constitute community property under applicable laws, this

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Agreement has been duly authorized, executed and
delivered by, and constitutes the valid and binding agreement of, such Stockholder’s
spouse.  If this Agreement is being
executed in a representative or fiduciary capacity, the Person signing this
Agreement has full power and authority to enter into and perform this
Agreement.

(c)           As of the date hereof and for as long
as this Agreement remains in effect (including the date of the Company
Stockholder Meeting), such Stockholder has full legal power, authority and
right to vote all of the Shares then owned of record or beneficially by such
Stockholder in favor of the approval and authorization of the Proposed
Transaction without the consent or approval of, or any other action on the part
of, any other Person.  Without limiting
the generality of the foregoing, the Stockholder has not entered into any
voting agreement (other than this Agreement) with any Person with respect to
any of the Shares, granted any Person any proxy (revocable or irrevocable) or
power of attorney with respect to any of the Shares, deposited any of the
Shares in a voting trust or entered into any arrangement or agreement with any
Person limiting or affecting its legal power, authority or right to vote the
Shares on any matter.

Section 2.02           Non-Contravention.  The execution, delivery and performance by
Stockholder of this Agreement and the consummation by Stockholder of the
transactions contemplated hereby do not and shall not (i) if Stockholder is not
an individual, violate any organizational documents of Stockholder, (ii)
violate any applicable law, rule, regulation, judgment, injunction, order or
decree, (iii) require any consent or other action by any Person under,
constitute a default under, or give rise to any right of termination,
cancellation or acceleration or to a loss of any benefit to which Stockholder
is entitled under any provision of any agreement or other instrument binding on
Stockholder, (iv) result in the imposition of any Lien on any asset of
Stockholder, or (v) violate any other agreement, arrangement or instrument to
which Stockholder is a party or by which Stockholder (or any of its assets) is bound,
except (A) for any reports under Sections 13(d) of the Exchange Act as may be
required in connection with this Agreement and the transactions contemplated
hereby or (B) as would not prevent, delay or otherwise impair Stockholder’s
ability to perform its obligations hereunder.

Section 2.03           Ownership of Shares.  Stockholder is the beneficial and record
owner of, and has the right to vote, the Shares, free and clear of any Lien,
option, right of first refusal, co-sale rights or any other limitation or restriction
(including any restriction on the right to vote or otherwise dispose of the
Shares) except for any such encumbrances arising hereunder.  The term “beneficial owner” and all
correlative expressions are used in this Agreement as defined in Rules 13d-3
and 16a-1 under the Securities Exchange Act of 1934, as amended.  None of the Shares is subject to any voting
trust or other agreement, arrangement or instrument with respect to the voting
of such Shares.

Section 2.04           Total Shares.  Except for the Shares and the other
securities of the Company convertible or exchangeable for shares of Company
Common Stock set forth beside Stockholder’s name on the signature page hereto,
Stockholder does not beneficially own any other shares of Company Common Stock
or securities of the Company convertible into or exchangeable for shares of
Company Common Stock.

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Section 2.05           Reliance by Buyer.  Such Stockholder understands and acknowledges
that Buyer is entering into the Merger Agreement in reliance upon such
Stockholder’s execution and delivery of this Agreement.

ARTICLE 3.

REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer represents and
warrants to Stockholder and the Company that:

Section 3.01           The execution and delivery of this
Agreement and the Merger Agreement (the “Transaction Documents”) by Buyer and
the performance by Buyer of its obligations thereunder and the consummation of
the Proposed Transaction have been duly authorized by all necessary action on
the part of Buyer. Each of the Transaction Documents has been duly executed and
delivered by, and constitutes a valid and binding agreement of, Buyer,
enforceable against Buyer in accordance with its terms, except as enforcement
may be limited by or subject to the effects of bankruptcy, insolvency,
reorganization, moratorium and other laws relating to or affecting the rights
of creditors and of general principles of equity.

Section 3.02           Neither the execution and delivery of
the Transaction Documents nor the performance by Buyer of its obligations
thereunder will result in a violation of, or a default under, or conflict with,
(A) any provision of its certificate of incorporation, bylaws, partnership
agreement, limited liability company agreement or similar organizational
documents, (B) any contract, trust, commitment, agreement, understanding,
arrangement or restriction of any kind to which Buyer is a party or bound,
except, in the case of clause (B), as would not prevent, delay or otherwise
materially impair Buyer’s ability to perform its obligations thereunder or
consummate the Merger. Execution, delivery and performance of the Transaction
Documents by Buyer will not violate, or require any consent, approval or notice
under, any provision of any judgment, order, decree, statute, law, rule or
regulation applicable to Buyer or the Shares, except (x) for any reports under
Sections 13(d) of the Exchange Act as may be required in connection with this
Agreement and the transactions contemplated hereby or (y) as would not
reasonably be expected to prevent, delay or otherwise materially impair Buyer’s
ability to perform its obligations thereunder or consummate the Merger.

Section 3.03           There is no action, claim, suit,
demand, hearing, notice of violation or deficiency, or proceeding (including
any investigation or partial proceeding, such as a deposition), domestic or
foreign, pending, or to the knowledge of Buyer threatened, that could prevent
the consummation of, materially impair or materially delay the Merger or any of
the transactions contemplated hereby.

ARTICLE 4.

COVENANTS OF STOCKHOLDERS

Stockholder hereby covenants and agrees that:

Section 4.01           No Interference; No Transfers.  (a) Except pursuant to the terms of this
Agreement, Stockholder shall not, without the prior written consent of Buyer,
directly or indirectly, (i) grant any proxies (revocable or irrevocable) or
enter into any voting trust, power of attorney or other agreement or
arrangement with respect to the voting of any Shares in a manner

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inconsistent with the terms of this Agreement, (ii)
voluntarily take any action that would or is reasonably likely to (A) make any
representation or warranty contained herein untrue or incorrect in any material
respect or (B) have the effect in any respect of preventing such Stockholder
from performing its obligations under this Agreement, or (iii) Transfer (or
agree to Transfer) any of the Stockholder’s Shares; provided, however, that the
restrictions in this Section 4.01 shall not be deemed violated by any Transfer
of Shares pursuant to a cashless exercise of stock options or warrants.

(b)           The term “Transfer” means, with
respect to any security, the direct or indirect assignment, sale, transfer,
tender, pledge, hypothecation, or the grant, creation or sufferance of a Lien
in or upon, or the gift, placement in trust, or the constructive sale or other
disposition of such security (other than transfers by testamentary or intestate
succession or otherwise by operation of law) of any right, title or interest
therein (including but not limited to any right or power to vote to which the
holder thereof may be entitled, whether such right or power is granted by proxy
or otherwise), or the record or beneficial ownership thereof, the offer to make
such a sale, transfer, constructive sale or other disposition, and each
agreement, arrangement or understanding, whether or not in writing, to effect
any of the forgoing.  The term “constructive
sale” means a short sale with respect to a security (or substantially similar
security), entering into or acquiring an offsetting derivative contract with
respect to such security (or substantially similar security), entering into or
acquiring a futures or forward contract to deliver such security (or
substantially similar security) or entering into any other hedging or other
derivative transaction that has the effect of materially changing the economic
benefits and risks of ownership.

Section 4.02           Other Offers.  Such Stockholder shall not, directly or
indirectly, (i) take any action to solicit, initiate or encourage (or authorize
any Person to solicit, initiate or encourage) any Alternative Transaction
Proposal, (ii) participate in any discussion or engage in negotiations with, or
disclose any nonpublic information relating to the Company or any of the
Company Subsidiaries or afford access to the properties, books or records of
the Company or any of the Company Subsidiaries to, any Person that may be
considering making, or has made, an Alternative Transaction Proposal or has
agreed to endorse an Alternative Transaction Proposal or any request for
nonpublic information relating to the Company or any of the Company
Subsidiaries or for access to the properties, books or records of the Company
or any of the Company Subsidiaries by any Person that may be considering
making, or has made, an Alternative Transaction Proposal and shall advise Buyer
of the status and material details of any such Alternative Transaction Proposal
or request, (iii) approve, endorse or recommend any of the foregoing, or (iv)
enter into any letter of intent or similar document or any contract, agreement
or commitment contemplating or otherwise relating to any of the foregoing.

Section 4.03           Appraisal Rights.  Stockholder agrees not to exercise any rights
of appraisal or any dissenters’ rights that Stockholder may have (whether under
applicable law or otherwise) with respect to any Shares or any other shares of
Company Capital Stock which may arise with respect to the Merger.

Section 4.04           Additional Shares.  If after the date hereof, the Stockholder
acquires beneficial or record ownership of any additional shares of Company
Capital Stock (any such shares, “Additional Shares”), including without
limitation, upon exercise of any option, warrant, 

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right to acquire Additional Shares or through any
stock dividend or stock split, the provisions of this Agreement applicable to
the Shares shall thereafter be applicable to such Additional Shares as if such
Additional Shares had been Shares as of the date hereof.  The provisions of the immediately preceding
sentence shall be effective with respect to Additional Shares without action of
any Person immediately upon the acquisition by the Stockholder of such
Additional Shares.

ARTICLE 5.

MISCELLANEOUS

Section 5.01           Amendments; Termination.  Any provision of this Agreement may be
amended or waived if, but only if, such amendment or waiver is in writing and
is signed, in the case of an amendment, by each party to this Agreement or in
the case of a waiver, by the party against whom the waiver is to be
effective.  This Agreement shall terminate
on the earliest of (i) the Effective Time, (ii) the date of termination of the
Merger Agreement in accordance with its terms, (iii) the mutual consent of
Buyer and Stockholder, (iv) the date of any amendment, waiver or modification
to the Merger Agreement in a manner that reduces the Merger Consideration, or
(v) July 19, 2007 (such period from the date hereof until such termination is
referred to herein as the “Term”).  In
the event of termination of this Agreement as provided in this Section 5.01,
this Agreement shall forthwith become void and have no effect, without any
liability or obligation on the part of any party to this Agreement and this
Article 5, except that nothing herein will relieve any party from liability for
any willful breach engaged in prior to such termination of any representation,
warranty or covenant set forth in this Agreement.

Section 5.02           Costs and Expenses.  All costs and expenses incurred in connection
with this Agreement shall be paid by the party incurring such cost or expense.

Section 5.03           Successors and Assigns.  Neither this Agreement nor any of the rights,
interests or obligations under this Agreement shall be assigned, in whole or in
part, by operation of law or otherwise by any of the parties hereto without the
prior written consent of the other parties hereto, except that Buyer may
assign, in its sole discretion, any of or all its rights, interests and
obligations under this Agreement to any direct or indirect wholly owned
subsidiary of Buyer, but no such assignment shall relieve Buyer of any of its
obligations under this Agreement. Any purported assignment without such consent
shall be void. Subject to the preceding sentences, this Agreement will be
binding upon, inure to the benefit of, and be enforceable by, the parties
hereto and their respective successors and assigns.

Section 5.04           Governing Law.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Texas, regardless of the
laws that might otherwise govern under applicable principles of conflicts of
laws thereof.

Section 5.05           Counterparts; Effectiveness.  This Agreement may be executed in one or more
counterparts, all of which shall be considered one and the same agreement and
shall become effective when one or more counterparts have been signed by each
of the parties hereto and delivered to the other parties hereto.  Delivery of an executed counterpart of this
Agreement by facsimile shall be effective to the fullest extent permitted by
applicable law.

 

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Section 5.06           Severability.  If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any rule or
law, or public policy, all other conditions and provisions of this Agreement
shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any
manner materially adverse to any party. Upon such determination that any term
or other provision is invalid, illegal or incapable of being enforced, the
parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties hereto as closely as possible in an
acceptable manner to the end that transactions contemplated hereby are fulfilled
to the extent possible.

Section 5.07           Interpretation.  When a reference is made in this Agreement to
a Section, such reference shall be to a Section of this Agreement unless
otherwise indicated.  The headings
contained in this Agreement are for reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement.  Whenever the words “include”, “includes” or “including”
are used in this Agreement, they shall be deemed to be followed by the words “without
limitation”  to the extent such words do
not already follow any such term.  The
word “or” shall not be exclusive.  The
phrases “herein,” “hereof,” “hereunder” and words of similar import shall be
deemed to refer to this Agreement as a whole and not to any particular provision
of this Agreement.  Other than Section
1.01(c), this Agreement is an agreement between each of the Stockholders, on
the one hand, and Buyer, on the other hand, and is not an agreement among the
Stockholders.

Section 5.08           Specific Performance.  The parties hereto agree that irreparable
damage would occur in the event that any of the provisions of this Agreement
were not performed in accordance with their specific terms on a timely basis or
were otherwise breached.  It is
accordingly agreed that the parties hereto shall be entitled to an injunction
or other equitable relief to prevent breaches of this Agreement and to enforce
specifically the terms and provisions of this Agreement in any court identified
in Section 5.10, this being in addition to any other remedy to which they are
entitled at law or in equity.

Section 5.09           Entire Agreement; No Third-Party
Beneficiaries.  This Agreement
constitutes the entire agreement, and supersedes all prior agreements and
understandings, both written and oral, among the parties hereto with respect to
the subject matter hereof.  No provision
of this Agreement is intended to confer upon any Person other than the parties
hereto any rights or remedies.

Section 5.10           Submission to Jurisdiction.  All disputes relating to this Agreement or
any of the transactions contemplated by this Agreement shall be subject to the
exclusive jurisdiction of the federal or state courts in Houston, Texas.  Each of the parties hereto (i) agrees
that it will not attempt to deny or defeat such personal jurisdiction by motion
or other request for leave from any such court; (ii) agrees that it will
not bring any action relating to this Agreement or any of the transactions
contemplated by this Agreement in any court other than the federal or state courts
in Houston, Texas; and (iii) waives any right to trial by jury with respect to
any action related to or arising out of this Agreement or any of the
transactions contemplated hereby.

Section 5.11           Acknowledgment.  Buyer acknowledges that each Stockholder signs
solely in its capacity as the record and/or beneficial (as applicable) owner of
the Shares and

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nothing herein shall limit or affect any actions taken
by such Stockholder, or require such Stockholder to take any action, in his or
her capacity as an officer or director of the Company including to disclose
information acquired solely in his or her capacity as an officer or director.

[Intentionally left
blank]

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IN WITNESS WHEREOF, the parties
hereto have cause this Agreement to be duly executed as of the date and year
first above written.

	
  

  	
   

  	
  STERLING ENERGY PLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
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 9Exhibit 10.2

WHITTIER ENERGY CORPORATION

RETENTION AND SEVERANCE PLAN

THIS RETENTION AND SEVERANCE PLAN (the “Plan”),
made and executed at Houston, Texas, by Whittier Energy Corporation, a Nevada
corporation (the “Company”), is being
established by the Company to provide for the payment of retention bonuses and
severance benefits to eligible employees of the Company and its participating
affiliates under the circumstances described below.

ARTICLE I

DEFINITIONS

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

(a)            “Applicable Retention Factor”
shall mean the retention factor specified as applicable to a Key Employee as
set forth on the attached Schedule A.

(b)            “Applicable Severance Factor”
shall mean the severance factor specified as applicable to a Key Employee as
set forth on the attached Schedule A.

(c)            “Base Pay” shall mean the
annualized base rate of compensation payable by the Employer to a Key Employee
in cash, including any amount that the Key Employee could have received in cash
had he or she not elected to contribute such amount to an employee benefit plan
maintained by the Employer, but excluding overtime pay, call pay, shift and
area differentials, commissions, bonuses, added premiums, and all other forms
of incentive or supplemental pay, employee benefits and perquisites paid or
provided by the Employer.

(d)            “Board” shall
mean the Board of Directors of the Company.

(e)            A “Change of Control” shall be deemed to have occurred if:

(1)           individuals who, as of the Effective
Date, constitute the Board (the “Incumbent Board”) cease for any reason to
constitute at least fifty-one percent (51%) of the Board, provided that any
person becoming a director subsequent to the Effective Date whose election, or
nomination for election, by the Company’s stockholders was approved by a vote
of at least a majority of the directors then comprising the Incumbent Board
shall be, for purposes of the Plan, considered as though such person were a
member of the Incumbent Board;

(2)           any person (as such term is defined
in Section 3(a)(9) of the Securities Exchange Act of 1934) or group (as such
term is defined in Section 13(d)(3) of the Securities Exchange Act of 1934)
other than a trustee or other 

fiduciary holding securities
under an employee benefit plan of the Company or a corporation, partnership,
limited partnership, limited liability company or other entity owned, directly
or indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of stock or the Company is or becomes the
beneficial owner (as such phrase is defined in Rule 13d-5 under the Securities
Exchange Act of 1934), directly or indirectly, of securities of the Company
representing fifty percent (50%) or more of the combined voting power of the
Company’s then outstanding voting securities; or

(3)           the Company consummates a merger or
consolidation of the Company, with any other corporation, other than a merger
or consolidation that would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting securities of the
surviving entity) at least fifty percent (50%) of the combined voting power of
the voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation; or

(4)           the Company consummates the sale or
disposition of all or substantially all of its assets.

(f)             “Code” shall
mean the Internal Revenue Code of 1986, as amended.

(g)            “Committee”
shall mean the committee appointed by the Board to administer the Plan.

(h)            “Company”
shall mean Whittier Energy Corporation, a Nevada corporation.

(i)             A “Constructive Termination” shall
be deemed to have occurred with respect to a Key Employee if, during the
Retention Period or within the period of one hundred and eighty (180) days
commencing upon the occurrence of the first Change of Control to occur after
the Effective Date, as applicable, the Employer:

(1)           reduces such Key
Employee’s Base Pay or target bonus under any bonus or incentive compensation
plan of the Employer from the Base Pay being paid to or the bonus being
targeted for him or her immediately prior to the Change of Control;

(2)           makes a significant
reduction in the level, or a significant increase in the cost to such Key
Employee, of the employee benefits (including but not limited to medical,
dental, vision, life insurance, accidental death and dismemberment, and long-term
disability benefits) and perquisites being provided to or for the benefit of
such Key Employee from the level or cost applicable to him or her immediately
prior to the Change of Control; or

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(3)           requires or requests
such Key Employee to relocate to a principal place of employment that is more
than fifty (50) miles from the location where he or she was principally
employed immediately prior to the Change of Control.

(j)             “Effective Date”
shall mean January 18, 2007.

(k)            “Employer”
shall include the Company and each other entity or organization that adopts the
Plan in accordance with the provisions of Section 4.4 of the Plan and their
successors.

(l)             “ERISA” shall
mean the Employee Retirement Income Security Act of 1974, as amended.

(m)           “Involuntary Termination” shall
mean any termination of a Key Employee’s employment with the Employer which:

(1)           does not result from
a voluntary resignation by the Key Employee (other than a resignation pursuant
to Section 1.1(n)(2)); or

(2)           results from a
resignation by a Key Employee on or before the date which is sixty (60) days
after the date the Key Employee is notified of a Constructive Termination
applicable to him or her;

provided,
however, that the term “Involuntary Termination” shall not include a
Termination for Cause or any termination as a result of the Key Employee’s
death, disability under circumstances entitling him or her to benefits under
the Employer’s long-term disability plan, or Retirement; and provided further
that if such Key Employee continues to provide services to or with respect to
the Employer (or one of its affiliates or a successor employer) following his
or her termination of employment with the Employer, the “Involuntary
Termination” of such Key Employee shall not be deemed to have occurred until
such Key Employee has incurred a “separation from service” (within the meaning
of Section 409A(a)(2) of the Code and the regulations promulgated thereunder)
with respect to the Employer and its affiliates.

(n)           “Key Employee” shall mean an
employee of the Employer who is listed on the attached Schedule A.

(o)           “Monthly Base Pay” shall mean
the greater of (1) the Key Employee’s Base Pay immediately prior to the date on
which the Change of Control occurs, or (2) the Key Employee’s Base Pay
immediately prior to the date of his or her Involuntary Termination, in either
case divided by twelve (12).

(p)           “Payment Date” shall mean (1) with
respect to a Key Employee who is not a Specified Employee, the day immediately
after the date of such Key Employee’s Involuntary Termination, and (2) with
respect to a Key Employee who is a Specified Employee, the earlier of (i) the
date that is six (6) months after the date of such Key Employee’s Involuntary

 3
 

Termination, or
(ii) the date that is thirty (30) days after the date of such Key Employee’s
death following his or her termination of employment with the Employer.

(q)           “Retention Period” shall mean the
period of ninety (90) days commencing upon the occurrence of the first Change
of Control to occur after the Effective Date.

(r)             “Retirement” shall mean a Key
Employee’s voluntary resignation onor after the
date as of which he or she has attained age sixty-five (65), excluding a
resignation at the request of the Employer or a resignation within sixty (60)
days after such Key Employee is notified of a Constructive Termination
applicable to him or her.

(s)            “Specified Employee” shall mean a
Key Employee who is a specified employee within the meaning of Section
409A(a)(2) of the Code and the regulations promulgated thereunder.

(t)            “Termination for Cause”
shall mean any termination of a Key Employee’s employment with the Employer by
reason of the Key Employee’s (1) conviction of a felony or misdemeanor
involving moral turpitude, (2) engagement in conduct involving a material
misuse of the Employer’s or an affiliate’s funds or other property, (3)
engagement in business activities which are in conflict with the business
interests of the Employer, (4) gross negligence or willful misconduct, (5) engagement
in conduct which is in violation of the Employer’s safety rules or standards or
which otherwise may cause or causes injury to another employee or any other
person, or (6) material violation of the Company’s Code of Ethics.

(u)           “Welfare Benefit Coverages”
shall mean the medical, dental and vision care benefits provided by the
Employer to its active employees.

1.2           Number and Gender.  Wherever appropriate herein, words used in
the singular shall be considered to include the plural and the plural to include
the singular.  The masculine gender,
where appearing in the Plan, shall be deemed to include the feminine gender.

1.3           Headings.  The headings of Articles and Sections herein
are included solely for convenience and if there is any conflict between such headings
and the text of the Plan, the text shall control.

ARTICLE
II

RETENTION BONUS AND SEVERANCE BENEFITS

2.1           Retention Bonus.  Subject to the provisions of Sections 2.5 and
2.6 hereof:

(a)           if a Key Employee’s employment by the
Employer continues through the end of the last day of the Retention Period, the
Employer shall pay to such Key Employee on the day immediately following the
last day of the Retention Period an amount in cash equal to such Key Employee’s
Monthly Base Pay multiplied by such Key Employee’s Applicable Retention Factor;
and

 4
 

 

(b)           if a Key Employee’s employment by the
Employer terminates in an Involuntary Termination prior to the end of the last
day of the Retention Period, the Employer shall pay to such Key Employee on his
or her Payment Date an amount in cash equal to such Key Employee’s Monthly Base
Pay multiplied by such Key Employee’s Applicable Retention Factor.

The severance benefits payable under this Section 2.1 (1) shall be
deemed to be severance pay subject to any required tax withholding, and (2)
shall not constitute compensation that is taken into account for the purposes
of determining benefits or allocating contributions under any employee benefit
plan (within the meaning of ERISA) maintained by the Employer.

2.2           Severance Benefits.  Subject to the provisions of Sections 2.3,
2.5 and 2.6 hereof, if a Key Employee’s employment by the Employer terminates
in an Involuntary Termination within the period of one hundred and eighty (180)
days commencing upon the occurrence of the first Change of Control to occur
after the Effective Date, then in addition to any payment that may be due to
such Key Employee pursuant to the provisions of Section 2.1 hereof, the
Employer shall:

(a)           pay to such Key Employee on his or
her Payment Date an amount in cash equal to such Key Employee’s Monthly Base
Pay multiplied by such Key Employee’s Applicable Severance Factor; and

(b)           provide such Key
Employee with continued Welfare Benefit Coverages for himself or herself and,
where applicable, his or her eligible dependents, for a period of six (6)
months following the date of such Involuntary Termination; provided, however,
that the Key Employee must continue to pay the premiums paid by active
employees of the Employer from time to time for such coverages.  Such benefit rights shall apply only to those
Welfare Benefit Coverages that the Employer has in effect from time to time for
active employees.  If the Employer
determines that providing one of the Welfare Benefit Coverages under a welfare
plan maintained by the Employer will fail to satisfy a nondiscrimination
requirement that the Employer intended such welfare plan to satisfy, then
instead of providing such benefit under such welfare plan, the Employer may
provide such benefit to or with respect to such Key Employee under another plan
or insurance arrangement.  Welfare
Benefit Coverages shall immediately end upon the Key Employee’s obtainment of
new employment and eligibility for similar Welfare Benefit Coverages (with the
Key Employee being obligated hereunder to promptly report such eligibility to
the Employer).

The severance benefits payable under this Section 2.2 (1) shall be
deemed to be severance pay subject to any required tax withholding, and (2)
shall not constitute compensation that is taken into account for the purposes
of determining benefits or allocating contributions under any employee benefit
plan (within the meaning of ERISA) maintained by the Employer.

2.3           Release and Full Settlement.  Any provision of the Plan to the contrary
notwithstanding, as a condition to the receipt of any severance benefit
hereunder, a Key

 5
 

Employee whose employment by the Employer terminates in an Involuntary
Termination shall execute a release and indemnity, in such reasonable form as
may be approved by the Committee, releasing the Board, the Committee, the
Employer and the Employer’s affiliates, shareholders, partners, officers,
directors, employees and agents from, and indemnifying each such party against,
any and all claims and causes of action of any kind or character, including but
not limited to all claims or causes of action arising out of such Key Employee’s
employment with the Employer, the termination of such employment and the
performance of the Employer’s obligations hereunder, and the receipt by such Key
Employee of any benefit provided hereunder shall constitute full settlement of
all such claims and causes of action of such Key Employee.

2.4           Mitigation.  A Key Employee shall not be required to
mitigate the amount of any payment or benefit provided for in this Article II
by seeking other employment or otherwise, nor shall the amount of any payment
or benefit provided for in this Article II be reduced by retirement benefits or
by any compensation or benefit earned by the Key Employee as the result of employment
by another employer (except with respect to Welfare Benefit Coverages to the
extent provided under Section 2.2(b)).

2.5           Severance Pay Plan Limitation.  The Plan is intended to be an employee
welfare benefit plan within the meaning of Section 3(1) of ERISA and the
Department of Labor regulations promulgated thereunder.  Accordingly, any provision of the Plan to the
contrary notwithstanding, in no event shall any Key Employee receive total
payments under the Plan that exceed the equivalent of twice such Key Employee’s
“annual compensation” (as such term is defined in 29 CFR § 2510.3-2(b)(2))
during the year immediately preceding his or her Involuntary Termination.  If total payments under the Plan to a Key
Employee would otherwise exceed the limitation in the preceding sentence, the
amount payable to such Key Employee pursuant to Sections 2.1 or 2.2 shall be
reduced in order to satisfy such limitation.

2.6           Parachute Payment Limitation.  Any provision of the Plan to the contrary
notwithstanding, if a Key Employee is a “disqualified individual” (as defined
in Section 280G of the Code), and the retention and severance benefits provided
in Sections 2.1 and 2.2, together with any other payments or benefits which the
Key Employee has the right to receive from the Employer, would constitute a “parachute
payment” (as defined in Section 280G of the Code), the severance benefits
provided hereunder shall be either (a) reduced (but not below zero) so that the
aggregate present value of such payments received by the Key Employee from the
Employer will be one dollar ($1.00) less than three times the Key Employee’s “base
amount” (as defined in Section 280G of the Code) and so that no portion of such
payments received by the Key Employee shall be subject to the excise tax
imposed by Section 4999 of the Code, or (b) paid in full, whichever produces
the better net after-tax result for the Key Employee (taking into account any
applicable excise tax under Section 4999 of the Code and any applicable income
tax).  The determination as to whether
any such reduction in the amount of the severance benefits is necessary shall
be made by the Company in good faith, and such determination shall be
conclusive and binding on the Key Employee. 
If a reduced cash payment is made and through error or otherwise that
payment, when aggregated with other payments from the Employer (or its
affiliates) used in determining if a “parachute payment” exists, exceeds one
dollar ($1.00) less than three (3) times the Key Employee’s base amount, the
Key Employee shall immediately repay such excess to the Employer upon
notification that an overpayment has been made.

 6

 

ARTICLE III

ADMINISTRATION OF PLAN

3.1           Committee’s
Powers and Duties.  It
shall be a principal duty of the Committee to see that the Plan is carried out,
in accordance with its terms, for the exclusive benefit of persons entitled to
participate in the Plan.  The Committee
shall be the Plan’s named fiduciary and shall have full power to administer the
Plan in all of its details, subject to applicable requirements of law.  For this purpose, the Committee’s powers
shall include, but not be limited to, the following authority, in addition to
all other powers provided by the Plan:

(a)           to make and enforce such rules and
regulations as it deems necessary or proper for the efficient administration of
the Plan;

(b)           to interpret the Plan, its
interpretation thereof to be final and conclusive on all persons claiming
benefits under the Plan;

(c)           to decide all questions concerning
the Plan and the eligibility of any person to participate in the Plan;

(d)           to make determination as to the right
of any person to a benefit under the Plan (including, without limitation, to
determine whether and when there has been a termination of a Key Employee’s
employment and the cause of such termination);

(e)           to appoint such agents, counsel,
accountants, consultants, claims administrators and other persons as may be
required to assist in administering the Plan;

(f)            to allocate and delegate its
responsibilities under the Plan and to designate other persons to carry out any
of its responsibilities under the Plan, any such allocation, delegation or
designation to be in writing;

(g)           to sue or cause suit to be brought in
the name of the Plan; and

(h)           to obtain from the Employer and from
the Key Employees such information as is necessary for the proper
administration of the Plan.

3.2           Member’s Own Participation.  No member of the Committee may act, vote, or
otherwise influence a decision of the Committee specifically relating to
himself or herself as a participant in the Plan.

3.3           Indemnification.  The Company shall indemnify and hold
harmless each member ofthe Committee against any and all expenses and liabilities
arising out of his or her administrative functions or fiduciary
responsibilities with respect to the Plan, including any expenses and
liabilities that are caused by or result from an act or omission constituting
the negligence of such member in the performance of such functions or
responsibilities, but

 7
 

excluding expenses and liabilities that are caused by or result from
such member’s own gross negligence or willful misconduct.  Expenses against which such member shall be
indemnified hereunder shall include, without limitation, the amounts of any
settlement or judgment, costs, counsel fees, and related charges reasonably
incurred in connection with a claim asserted or a proceeding brought or
settlement thereof.

3.4           Compensation, Bond and Expenses.  The members of the Committee shall not receive compensation for
their services as members of the Committee. 
To the extent required by applicable law, but not otherwise, Committee
members shall furnish bond or security for the performance of their duties
hereunder. Any expenses properly incurred by the Committee incident to the
administration, termination or protection of the Plan, including the cost of
furnishing bond, shall be paid by the Company.

3.5           Claims Procedure.  A Key Employee that the Committee determines
is entitled to a benefit under the Plan is not required to file a claim for
such benefit.  A Key Employee who is not
paid a Plan benefit and who believes that he or she isentitled to suchbenefit, or who has been paid a Plan
benefit andwho
believes that he or she is entitled to a greater benefit, shall file a written
claim for such benefit withthe Committee no later than sixty (60)
days after such Key Employee’s Payment Date. 
In any case in which a claim for a Plan benefit is submitted by a Key
Employee, theCommittee shall furnish written notice to the claimant
within sixty (60) days (or within 120 days if additional information requested
by the Committee necessitates an extension of the sixty-day period), which
notice shall:

(a)           state the specific reason or reasons
for the denial or modification;

(b)           provide specific references to
pertinent Plan provisions on which the denial or modification is based;

(c)           provide a description of any additional
material or information necessary for the Key Employee or his or her
representative to perfect the claim, and an explanation of why such material or
information is necessary; and

(d)           explain the Plan’s claim review
procedure as contained herein.

In the event a claim for a Plan benefit is denied or
modified, if the Key Employee or his or her representative desires to have such
denial or modification reviewed, he or she must, within sixty (60) days
following receipt of the notice of such denial or modification, submit a
written request for review by the Committee of its initial decision. In
connection with such request, the Key Employee or his or her representative may
review any pertinent documents upon which such denial or modification was based
and may submit issues and comments in writing. 
Within sixty (60) days following such request for review, the Committee
shall, after providing a full and fair review, render its final decision in
writing to the Key Employee and his or her representative, if any, stating
specific reasons for such decision and making specific references to pertinent
Plan provisions upon which the decision is based.  If special circumstances require an extension
of such sixty-day period, the Committee’s decision shall be rendered as soon as
possible, but not later than 120 days after receipt of the request for
review.  If an extension of time for
review is 

 8
 

required, written notice of the extension shall be furnished to the Key
Employee and his or her representative, if any, prior to the commencement of
the extension period.

3.6           Mandatory Arbitration.  If a Key Employee or his or her
representative is not satisfied with the decision of the Committee pursuant to
the Plan’s claims review procedure, such Key Employee or his or her representative
may, within sixty (60) days of receipt of the written decision of the
Committee, request by written notice to the Committee that his or her claim be
submitted to arbitration pursuant to the employee benefit plan claims
arbitration rules of the American Arbitration Association.  Such arbitration shall be the sole and
exclusive procedure available to a Key Employee or his or her representative
for review of a decision of the Committee. 
The Key Employee or his or her representative and the Employer shall
share equally the cost of such arbitration, including but not limited to the
fees of the arbitrator and reasonable attorneys’ fees, unless the arbitrator
determines otherwise.  The arbitrator’s
decision shall be final and legally binding on both parties.  Judgment upon the arbitrator’s decision may
be entered in any court of appropriate jurisdiction, and may not be challenged
in any court, either at the place of arbitration or elsewhere.  This Section shall be governed by the
provisions of the Federal Arbitration Act.

ARTICLE
IV.

GENERAL PROVISIONS

4.1           Funding.  The benefits provided under the Plan shall be
unfunded and shall be provided from the Employer’s general assets.

4.2           Cost of Plan. The entire cost of the Plan shall be borne by
the Employer and no contributions shall be required of the Key Employees.

4.3           Plan Year.  The Plan shall operate on a plan year
consisting of the twelve consecutive month period commencing on January 1 of
each year (with a short plan year commencing on the Effective Date and ending
on December 31, 2007).

4.4           Other Participating Employers. With the written consent of the Committee, any
entity or organization eligible by law to participate in the Plan may adopt the
Plan and become a participating Employer hereunder by executing and delivering
a written instrument evidencing such adoption to the Secretary of the
Company.  Such written instrument shall
specify the effective date of the adoption of the Plan by such adopting
Employer, may incorporate specific provisions relating to the operation of the
Plan which apply to the adopting Employer only, and shall become, as to such
adopting Employer and its employees, a part of the Plan.  Each adopting Employer shall be conclusively
presumed to have agreed to be bound by the terms of the Plan as amended from
time to time.  The provisions of the Plan
shall be applicable with respect to each Employer separately, and amounts
payable hereunder shall be paid by the Employer which employs the particular
Key Employee.

 9
 

4.5           Amendment and Termination.

(a)           Prior to a Change of Control, the Plan may be amended or modified in any respect and may be terminated, on behalf of all Employers, by resolution adopted by the Board; provided, however, that no such amendment, modification or termination which would adversely affect the benefits or protections provided under the Plan to any individual who is a Key Employee on the date such amendment, modification or termination is adopted shall be effective as it relates to such individual unless no Change of Control occurs prior to January 1, 2008, and any such attempted amendment, modification or termination shall be null and void ab initio as it relates to such individual (it being understood that the removal of a Key Employee from participation in the Plan shall, for the purposes of this Section, constitute an adverse affect to the benefits or protections provided under the Plan to any Key Employee so removed).
(b)           Upon and after the occurrence of the first Change of Control to occur after the Effective Date, the Plan may not be amended, modified or terminated in any manner which would adversely affect the benefits or protections provided under the Plan to any individual who is a Key Employee on the date such Change of Control occurred, and any such attempted amendment, modification or termination shall be null and void ab initio as it relates to such individual.
(c)           Notwithstanding the foregoing provisions of this Section 4.5, if any compensation or benefit provided by the Plan may result in being subject to the tax imposed by Section 409A of the Code, the Board may modify the Plan as necessary or appropriate in the best interests of the Key Employees (1) to exclude such compensation or benefit from being deferred compensation within the meaning of Section 409A of the Code, or (2) to comply with the provisions of Section 409A of the Code and its related Code provisions (and the rules, regulations and other regulatory guidance relating thereto); provided, however, that no amendment made pursuant to the provisions of this Section 4.5(c) shall reduce the value of the compensation or benefits that would be payable to a Key Employee in connection with his or her Involuntary Termination following a Change of Control without the written consent of such Key Employee.
(d)           Any provision of this Plan to the contrary notwithstanding, if no Change of Control occurs prior to January 1, 2008, this Plan shall terminate and be null and void in its entirety on and after January 1, 2008.

4.6           No Contract of Employment.  The adoption and
maintenance of the Plan shall not be deemed to be a contract of employment
between the Employer and any person or to be consideration for the employment
of any person.  Nothing herein contained
shall be deemed to give any person the right to be retained in the employ of
the Employer or to restrict the right of the Employer to discharge any person
at any time nor shall the Plan be deemed to give the Employer the right to
require any person to remain in the employ of the Employer or to restrict any
person’s right to terminate his or her employment at any time.

4.7           Severability.  Any provision in the Plan that is
prohibited or unenforceable in any jurisdiction by reason of applicable law
shall, as to such jurisdiction, be ineffective only to the 

 10
 

extent of such prohibition or unenforceability without invalidating or
affecting the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

4.8           Nonalienation.  A Key
Employee shall have no right or ability to pledge, hypothecate, anticipate,
assign or otherwise transfer any benefit or right under the Plan, except by
will or the laws of descent and distribution.

4.9           Effect
of Plan.  The Plan is intended to supersede all oral or
written policies of the Employer and all oral or written communications to Key
Employees with respect to the subject matter of the Plan that were written or
communicated prior to the Effective Date, and all such prior policies and
communications shall be null and void on and after the Effective Date.  The Plan shall be binding upon the Employer
and any successor of the Employer, by merger or otherwise, and shall inure to
the benefit of and be enforceable by the Key Employees.  In addition, upon the occurrence of a Change
of Control, all rights of a Key Employee to eligibility and participation under
the Plan shall vest and shall be considered a contract right enforceable against
the Employer and any successors thereto, subject to the terms and conditions of
the Plan.

4.10         Code Section 409A Compliance.  The Plan is intended to provide compensation
and benefits that are not subject to the tax imposed under Section 409A of the
Code, and shall be interpreted and administered to the extent possible in
accordance with such intent.  Neither the
Company nor any other Employer makes any guarantee as to the tax treatment of
any payments or benefits to be provided pursuant to the Plan.

4.11         Governing Law. The Plan shall be governed and construed in
accordance with the laws of the State of Texas (without giving effect to any
choice-of-law rules that may require the application of the laws of another
jurisdiction), except to the extent preempted by federal law.

[remainder of page intentionally left blank]

 11
 

IN WITNESS WHEREOF, the Plan has been executed by the Company on this
18th day of January 2007.

	
  

  	
   

  	
  WHITTIER ENERGY CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Bryce W. Rhodes

  
	
   

  	
   

  	
  Name:

  	
   

  	
  Bryce W. Rhodes

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Chief Executive Officer

  

 

 12

SCHEDULE A FOR THE

WHITTIER ENERGY CORPORATION

RETENTION AND SEVERANCE PLAN

The following table
identifies each Key Employee and sets forth his or her Applicable Retention
Factor and Applicable Severance Factor:

This Schedule A has been
executed on this 18th day of January 2007.

	
  

  	
   

  	
  WHITTIER ENERGY CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Bryce W. Rhodes

  
	
   

  	
   

  	
  Name: 

  	
   

  	
  Bryce W. Rhodes

  
	
   

  	
   

  	
  Title: 

  	
   

  	
  President and Chief Executive Officer

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