Document:

nfx8k-11062008ex10171.htm

    

    Exhibit
10.17.1

     

    

     

    

     

    

     

    NEWFIELD
EXPLORATION COMPANY

     

    

     

    DEFERRED
COMPENSATION PLAN

     

    

     

    AS
AMENDED AND RESTATED AS OF

     

    

     

    NOVEMBER
6, 2008

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    

    
      
        
          
             

          

           

        

        
           

          
            

          

        

        
           

        

      

    

    

    

     

    

     

    

     

    NEWFIELD
EXPLORATION COMPANY

     

    DEFERRED
COMPENSATION PLAN

     

    AS
AMENDED AND RESTATED AS OF NOVEMBER 6, 2008

     

    W I T N E
S S E T H:

     

    WHEREAS, NEWFIELD EXPLORATION COMPANY,
adopted the NEWFIELD
EXPLORATION COMPANY DEFERRED COMPENSATION PLAN (the “Plan”)
first effective as of April 1, 1997 and last amended and restated effective as
of July 26, 2007;

     

    WHEREAS, the Compensation
Committee (as hereinafter defined) has reserved to itself in Section 10.4 the
power to amend the Plan; and

     

    WHEREAS, the Compensation
Committee desires to amend the Plan to allow Members to select company stock as
one of the hypothetical investment options under the Plan and to make certain
additional amendments to the Plan to provide transitional relief in accordance
with Section 409A of the Internal Revenue Code of 1986, as amended.

     

    NOW THEREFORE, the Plan hereby
is amended and restated effective as of November 6, 2008, to read as
follows:

     

    

     

    

     

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    TABLE
OF CONTENTS

     

    
      	 
      	 
      	
              Page

            
	
              I.

            	
              Definitions
      and Construction

            	
              1

            
	
              1.1

            	
              Definitions

            	
              1

            
	
              1.2

            	
              Number
      and Gender

            	
              3

            
	
              1.3

            	
              Headings

            	
              3

            
	
              II.

            	
              Participation

            	
              3

            
	
              2.1

            	
              Participation

            	
              3

            
	
              2.2

            	
              Cessation
      of Active Participation

            	
              3

            
	
              III.

            	
              Account
      Credits

            	
              4

            
	
              3.1

            	
              Base
      Salary Deferrals

            	
              4

            
	
              3.2

            	
              Bonus
      Compensation Deferrals

            	
              4

            
	
              3.3

            	
              Special
      Rule for Performance-Based Compensation Bonus

            	
              5

            
	
              3.4

            	
              Effect
      of 401(k) Plan Hardship Withdrawal

            	
              5

            
	
              3.5

            	
              Company
      Deferrals

            	
              6

            
	
              3.6

            	
              Earnings
      Credits

            	
              6

            
	
              IV.

            	
              Vesting
      and In-Service Distributions

            	
              7

            
	
              4.1

            	
              Vesting

            	
              7

            
	
              4.2

            	
              In-Service
      Distributions

            	
              7

            
	
              V.

            	
              Payment
      of Benefits

            	
              8

            
	
              5.1

            	
              Payment
      Election Generally

            	
              8

            
	
              5.2

            	
              Special
      Rule for 409A Transition Period Elections

            	
              8

            
	
              5.3

            	
              Time
      of Benefit Payment

            	
              8

            
	
              5.4

            	
              Form
      of Benefit Payment

            	
              9

            
	
              5.5

            	
              Failure
      to Elect Form of Payment

            	
              9

            
	
              5.6

            	
              Death

            	
              9

            
	
              5.7

            	
              Acceleration
      of Payment

            	
              10

            
	
              5.8

            	
              Designation
      of Beneficiaries.

            	
              10

            
	
              5.9

            	
              Unclaimed
      Benefits

            	
              11

            
	
              5.10

            	
              Delay
      of Payments Under Certain Circumstances

            	
              11

            
	
              VI.

            	
              Administration
      of the Plan

            	
              11

            
	
              6.1

            	
              Plan
      Committee Powers and Duties

            	
              11

            
	
              6.2

            	
              Self-Interest
      of Members

            	
              12

            
	
              6.3

            	
              Claims
      Review

            	
              12

            
	
              6.4

            	
              Company
      to Supply Information

            	
              13

            
	
              6.5

            	
              Indemnity

            	
              13

            
	
              VII.

            	
              Administration
      of Funds

            	
              13

            
	
              7.1

            	
              Payment
      of Expenses

            	
              13

            
	
              7.2

            	
              Trust
      Fund Property

            	
              14

            
	
              VIII.

            	
              Nature
      of the Plan

            	
              14

            
	
              IX.

            	
              Participating
      Employers

            	
              15

            
	
              X.

            	
              Miscellaneous

            	
              15

            
	
              10.1

            	
              Not
      Contract of Employment

            	
              15

            
	
              10.2

            	
              Alienation
      of Interest Forbidden

            	
              15

            
	
              10.3

            	
              Withholding

            	
              15

            
	
              10.4

            	
              Amendment
      and Termination

            	
              15

            
	
              10.5

            	
              Severability

            	
              16

            
	
              10.6

            	
              Governing
      Laws

            	
              16

            
	
              10.7

            	
              Change
      of Control

            	
              16

            
	
              10.8

            	
              Compliance
      with Section 409A

            	
              16

            

    

    

    

    
      
        
           

        

        
          i 

          
            

          

        

        
           

        

      

    

    

    I.

     

    Definitions and
Construction

     

    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.

     

    Account:  A
memorandum bookkeeping account, excluding a Stock Account, established on the
records of the Company for a Member that is credited with amounts determined in
accordance with Article III of the Plan.  As of any determination
date, a Member’s benefit under the Plan shall be equal to the amount credited to
his Account as of such date.  A Member shall have a 100%
nonforfeitable interest in his Account at all times.

     

    Board:  The
Board of Directors of the Company.

     

    Base
Salary:  The base rate of cash compensation paid by the Company
to or for the benefit of a Member for services rendered or labor performed while
a Member including base pay a Member could have received in cash in lieu of
(A) deferrals pursuant to Section 3.1 and (B) contributions made
on his behalf to any qualified plan maintained by the Company or to any
cafeteria plan under Section 125 of the Code maintained by the
Company.

     

    Bonus
Compensation:  With respect to any Member for a Plan Year, an
amount awarded under the Newfield Employee 1993 Incentive Compensation Plan or
the Newfield Exploration Company 2003 Incentive Compensation Plan.

     

    Change
of Control:  The occurrence of any of the
following:

     

    (1)           the
Company is not the surviving Person (as such term is defined below in this
definition) in any merger, consolidation or other reorganization (or survives
only as a subsidiary of another Person);

     

    (2)           
the consummation of a merger or consolidation of the Company with another Person
pursuant to which less than 50% of the outstanding voting securities of the
surviving or resulting corporation are issued in respect of the capital stock of
the Company;

     

    (3)           the
Company sells, leases or exchanges all or substantially all of its assets to any
other Person;

     

    (4)           the
Company is to be dissolved and liquidated;

     

    (5)           any
Person, including a “group” as contemplated by Section13(d)(3) of the Securities
Exchange Act of 1934, acquires or gains ownership or control (including the
power to vote) of more than 50% of the outstanding shares of the Company’s
voting stock (based upon voting power); or

     

    (6)           as
a result of or in connection with a contested election of directors, the Persons
who were directors of the Company before such election cease to constitute a
majority of the Board.

     

    
      
        
        

      

      
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    Notwithstanding
the foregoing, the definition of “Change of Control” shall not include (A) any
merger, consolidation, reorganization, sale, lease, exchange, or similar
transaction involving solely the Company and one or more Persons that were
wholly owned, directly or indirectly, by the Company immediately prior to such
event or (B) any event that is not a “change in control” for purposes of Section
409A.  For purposes of this definition, “Person” shall mean any
individual, partnership, corporation, limited liability company, trust,
incorporated or unincorporated organization or association or other legal entity
of any kind.

     

    Code:  The
Internal Revenue Code of 1986, as amended.

     

    Compensation
Committee:  The Compensation & Management Development
Committee of the Board.

     

    Company:  Newfield
Exploration Company.

     

    Company
Deferrals:  Deferrals made by the Company on a Member’s behalf
pursuant to Section 3.5.

     

    Company
Stock:  The common stock of Newfield Exploration
Company.

     

    Effective
Date:  April 1, 1997.

     

    Member:  Each
individual who is a Member pursuant to Article II.

     

    Plan:  The
Newfield Exploration Company Deferred Compensation Plan.

     

    Plan
Committee:  The individual or committee that is authorized by
the Compensation Committee to administer the Plan.  The Plan Committee
may delegate pursuant to a written authorization (including, by way of
illustration, through a contract, memorandum, or other written delegation
document) any or all if its responsibilities set forth in the Plan to one or
more individuals, committees or service providers.  In any case where
the Plan refers to the Plan Committee, such reference is deemed to be a
reference to any delegate of the Plan Committee appointed for such
purpose.

     

    Plan
Year:  The twelve-consecutive month period commencing
January 1 of each year; provided, however, that the first Plan Year began
on April 1, 1997 and ended on December 31, 1997.

     

    Section
409A:  Section 409A of the Code and any applicable regulations
or rulings thereunder.

     

    Separation
from Service:   A “separation from service” within the
meaning of Section 409A(a)(2)(a)(i) of the Code.

     

    Specified
Employee:  On any date in the
applicable period, any employee of the Company or any affiliate of the Company
that would be considered a single employer with the Company under Section 414(a)
and (b) of the Code who was a “key employee” within the meaning of Section
416(i) of the Code (without regard to paragraph (5) thereof) at any time during
the 12-month period ending on the identification date.   For the
period beginning January 1, 2005 and ending March 31, 2006, the identification
date is December 31, 2004.  Thereafter, the applicable period is each
12-month period beginning on April 1, 2006 and each subsequent April 1
and  the identification date for each such period is the immediately
preceding December 31.  For example, for the period beginning April 1,
2006, the identification date is December 31, 2005.  Specified
Employees shall be determined in accordance with Section 409A.

     

    
      
        
        

      

      
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    Stock
Account:  The bookkeeping account specifically established for
a Member that includes amounts determined in accordance with Section
3.6(b).

     

    Trust:  The
trust, if any, established under the Trust Agreement.

     

    Trust
Agreement:  The agreement, if any, entered into between the
Company and the Trustee pursuant to Article VIII.

     

    Trust
Fund:  The funds and properties, if any, held pursuant to the
provisions of the Trust Agreement, together with all income, profits and
increments thereto.

     

    Trustee:  The
trustee or trustees appointed by the Plan Committee who are qualified and acting
under the Trust Agreement at any time.

     

    1.2 Number and
Gender.  Wherever
appropriate herein, words used in the singular shall be considered to include
the plural and words used in the plural shall be considered 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.

     

    II.

     

    Participation

     

    2.1 Participation.  Prior
to January 1, 2007, Members are those employees of the Company, whose Base
Salary exceeds an amount equal to (i) the limitation on elective deferrals
provided in Code Section 402(g) ($9,500 for 1997) with such amount to be
adjusted automatically to reflect any cost of living adjustment authorized by
Section 402(g)(5) of the Code, divided by (ii) the decimal
0.08.  However, for periods on or after January 1, 2007, Members are
those employees of the Company who are designated by the Compensation Committee
as eligible to participate in the Plan.  The Plan Committee shall
notify each employee who is a Member.

     

    2.2 Cessation of Active
Participation.  Notwithstanding
any provision herein to the contrary, an employee who is a Member shall cease to
be entitled to defer Base Salary and/or Bonus Compensation hereunder or receive
an allocation of Company Deferrals effective for payroll periods commencing
after the first date the employee ceases to be a Member.  Any such
Compensation Committee action shall be communicated to the affected individual
prior to the effective date of such action.

     

    
      
        
        

      

      
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    III.

     

    Account
Credits

     

    3.1 Base Salary
Deferrals.  Any
Member may elect to defer receipt of an integral percentage of from 1% to 90% of
his Base Salary for services to be performed during any Plan Year.  A
Member’s election to defer receipt of a percentage of his Base Salary for any
Plan Year shall be made on or before the last day of the preceding Plan Year;
provided, however, a Member’s election to defer receipt of a percentage of his
Base Salary for the Plan Year beginning April 1, 1997 shall be made on or
before March 31, 1997.  Notwithstanding the foregoing, if any
individual initially becomes a Member other than on the first day of a Plan
Year, and, after December 31, 2004, who is treated under Section 409A as first
becoming eligible to participate in an “account balance” plan maintained by the
Company, such individual may elect to defer receipt of a percentage of his Base
Salary for such Plan Year no later than 30 days after he first becomes a
Member.  Such election shall apply only to a pro rata portion of his
Base Salary for such Plan Year based upon the number of days remaining in such
Plan Year after the date of the election divided by 365 (or 366 if a leap
year).  Any such election after December 31, 2004 shall be effective
for payroll periods commencing after the date of the
election.   Base Salary for a Plan Year not deferred by a Member
pursuant to this Section 3.1 shall be received by such Member in cash except as
provided by any other plan maintained by the Company.  Deferrals of
Base Salary under the Plan shall be made before elective deferrals or
contributions of Base Salary under any other plan maintained by the
Company.  Deferrals of Base Salary made by a Member for a Plan Year
shall be credited to such Member’s Account as of the date the Base Salary
deferrals would have been received by such Member in cash had no deferrals been
made pursuant to this Section 3.1.  Except as provided in Section 3.4,
deferral elections of Base Salary for a Plan Year pursuant to this Section 3.1
shall be irrevocable through the end of the Plan Year for which they are
made.

     

    3.2 Bonus Compensation
Deferrals.  Any
Member may elect to defer receipt of an integral percentage of from 1% to 100%
of his Bonus Compensation for any Plan Year.  Such election may apply
to the Member’s current award or deferred award under the Newfield Employee 1993
Incentive Compensation Plan or the Newfield Exploration Company 2003 Incentive
Compensation Plan for a Plan Year.  A separate election may be made
with respect to each type of Bonus Compensation (current or deferred) that
otherwise would be paid in cash.  A Member’s election to defer receipt
of a percentage of his Bonus Compensation for any Plan Year shall be made on or
before the last day of the preceding Plan Year.  For Bonus
Compensation earned with respect to services performed after December 31, 2004,
the election to defer Bonus Compensation must be made in the Plan Year preceding
the Plan Year in which the bonus period begins.  For example,
if  Bonus Compensation for 2007 is paid in 2008, the election to defer
the 2007 Bonus Compensation must be made in 2006.  Notwithstanding the
foregoing, (1) a Member’s election to defer receipt of a percentage of his Bonus
Compensation for the Plan Year beginning April 1, 1997, may be made on or
before March 31, 1997 and (2) if any individual initially becomes a
Member other than on the first day of a Plan Year, and, after December 31, 2004,
such individual is treated under Section 409A as first becoming eligible to
participate in an “account balance” plan maintained by the Company, such
Member’s election to defer receipt of a percentage of his Bonus Compensation for
such Plan Year may be made no later than 30 days after he becomes a Member,
but such election shall apply only to a pro rata portion of his Bonus
Compensation for such Plan Year based upon the number of complete months
remaining in such Plan Year divided by twelve in the case of Bonus Compensation
deferred before 2006 and for Bonus Compensation deferred in 2006 and thereafter,
based on the number of days remaining in the Plan Year divided by
365.  Deferrals of Bonus Compensation under the Plan shall be made
before elective deferrals or contributions of Bonus Compensation under any other
plan maintained by the Company.  Bonus Compensation deferrals made by
a Member shall be credited to such Member’s Account as of the date the Bonus
Compensation deferral would have been received by such Member had no deferral
been made pursuant to this Section 3.2.  Except as provided in
Section 3.4, deferral elections of Bonus Compensation for a Plan Year pursuant
to this Section 3.2 shall be irrevocable.

     

    
      
        
        

      

      
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    3.3 Special Rule for
Performance-Based Compensation Bonus.  In the event
that the Company offers bonus compensation that constitutes “performanced-based
compensation” within the meaning of Section 409A, a Member may elect at least 6
months before the end of a performance period to defer an integral percentage of
from 1% to 100% of his performance-based compensation bonus for services
performed during a performance period; provided that (i) the performance period
must be at least 12 months; (ii) performance criteria are established in writing
not later than 90 days after commencement of the performance period;
(iii) the Member must be a Member continuously from the date upon which the
performance criteria for the particular performance period were established
through the date of his election; and (iv) at the time of the election, the
performance-based compensation bonus is not substantially certain to be paid or
is not readily ascertainable.  Deferrals of performance-based
compensation under the Plan shall be made before elective deferrals or
contributions of performance-based compensation under any other plan maintained
by the Company.  Performance-based compensation deferrals made by a
Member shall be credited to such Member’s Account as of the date the
performance-based compensation would have been received by such Member had no
deferral been made pursuant to this Section 3.3.  Except as
provided in Section 3.4, deferral elections of performance-based compensation
for a Plan Year pursuant to this Section 3.3 shall be irrevocable.

     

          
3.4 Effect of 401(k) Plan
Hardship Withdrawal or Unforseeable
Emergency.           

          
(a)           Effect of 401(k) Plan
Hardship Withdrawal.  Effective January 1, 2007, the deferral
election of a Member who has taken a hardship withdrawal pursuant to the
Company’s 401(k) plan shall automatically be cancelled effective immediately
upon such withdrawal and for the remainder of the Plan Year in which the
withdrawal is made and any subsequent Plan Year in which deferrals under the
401(k) plan are suspended.  Such Member may recommence participation
in the Plan only during an annual enrollment period and his election shall not
become effective until the beginning of the Plan Year following the annual
enrollment period.

     

    (b)           Effect of Unforeseeable
Emergency.   Effective January 1, 2007, a Member’s
deferral election shall be cancelled if, in the determination of the Plan
Committee, such Member has experienced a severe financial hardship resulting
from an illness or accident of the Member, the spouse of the Member or a
dependent (as defined in Section 152(a) of the Code) of the Member, loss of the
Member’s property due to casualty, or other similar extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the Member.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    3.5 Company
Deferrals.  For
each Plan Year during which a Member has made the maximum elective contributions
under the Newfield Exploration Company 401(k) Plan pursuant to
Section 402(g) of the Code, the Company shall credit a Member’s Account
with an amount equal to 100% of the compensation deferrals made by such Member
pursuant to Sections 3.1, 3.2 or 3.3 (as modified by Section 3.4) of the
Plan, with such amounts being limited to 8% of a Member’s Base Salary for such
Plan Year and reduced by the amount of Company matching contributions made for
the account of the Member under the Newfield Exploration Company 401(k) Plan for
such Plan Year or such lesser amount as may be credited consistent with Section
409A.  Company Deferrals made on a Member’s behalf shall be credited
to his Account in accordance with the procedures established from time to time
by the Plan Committee.

     

    3.6 Earnings
Credits.           

    (a)           Member’s
Account.  As of the last day of each calendar quarter, a
Member’s Account shall be credited with an amount of earnings based upon the
balance of such Member’s Account for each day during such calendar quarter and
utilizing an interest rate equal to for periods before 2003, the prime-based
borrowing rate option established in the Company’s  revolving credit
facility (or in the absence thereof the prime rate of interest of The Chase
Manhattan Bank, N.A. or its successor) and for periods after 2002 and before
2007 the highest coupon rate paid on the Company’s public
debt.  Interest shall be computed as the average on a daily basis
using a 365 or 366 day year as the case may be, and the actual days elapsed
(including the first day but excluding the last day) occurring in the calendar
quarter for which such interest is payable.  So long as there is any
balance in a Member’s Account, such Account shall continue to receive earnings
credits pursuant to this Section 3.6(a).  Beginning January 1, 2007,
the Plan Committee from time to time shall select one or more investment funds
that will serve as hypothetical investment options for a Member’s Account
(“phantom investment funds”).  The Plan Committee may establish limits
on the portion of an Account that may be hypothetically invested in any phantom
investment fund or in any combination of phantom investment
funds.  Each Member shall elect pursuant to procedures established by
the Plan Committee to treat the amounts credited to his Account as if they were
invested in one or more phantom investment funds (a “phantom investment
election”).  A Member may change his phantom investment election in
accordance with the Plan Committee’s procedures.  Any phantom
investment election shall be effective only if made in accordance with the Plan
Committee’s procedures.  The Plan Committee shall cause the Member’s
Account to be adjusted for any earnings and losses as if it were invested in
accordance with the Member’s phantom investment election.  Such
adjustments shall be made until his Account is distributed in full.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (b)           Member’s Stock
Account.  Effective November 6, 2008, in lieu of having amounts
credited with the phantom investment funds in accordance with Section 3.6(a), a
Member may elect to have all or part of the Member’s deferred amounts (in whole
percentage increments) credited in the form of Company Stock to his Stock
Account.  Each Member shall elect pursuant to procedures established
by the Plan Committee to have deferred amounts credited to his Stock
Account.  A Member may change such an election in accordance with the
Plan Committee’s procedures.  In addition, any amounts credited to a
Member’s Account in accordance with Section 3.6(a) may be transferred for
hypothetical investment tracking purposes to the Member’s Stock
Account.  In all events, once amounts are credited to a Member’s Stock
Account, no subsequent election may cause amounts credited to a Member’s Stock
Account to be transferred for hypothetical investment tracking purposes to any
other phantom investment fund.  All distributions of amounts credited
to a Member’s Stock Account may only be distributed in whole shares of Company
Stock (with cash for fractional shares).  A Member’s Stock Account
will be credited at such times as the Plan Committee determines with respect to
all other deferred amounts under the Plan, with the number of shares of Company
Stock (in whole shares and fractional shares, as determined by the Plan
Committee) determined by dividing the portion of the Member’s deferred amounts
to be credited in the Stock Account by the price for shares of Company Stock,
determined by the Plan Committee, as of  the day such deferred amounts
are credited to the Member’s Stock Account.

     

               If
the Company enters into transactions involving stock splits, stock dividends,
reverse splits or any other recapitalization transactions, the number of shares
of Company Stock credited to a Member’s Account will be adjusted (in whole
shares and fractional shares, as determined by the Plan Committee) so that the
Member’s Stock Account reflects the same equity percentage interest in the
Company after the recapitalization as was the case before such
transaction.  If at least a majority of the Company’s stock is sold or
exchanged by its stockholders pursuant to an integrated plan for cash or
property (including stock of another corporation) or if substantially all of the
assets of the Company are disposed of and, as a consequence thereof, cash or
property is distributed to the Company’s stockholders, each Member’s Stock
Account will be, to the extent not already so credited, with the amount of cash
or property receivable by a stockholder directly holding the same number of
shares of Company Stock as is credited to such Member’s Stock Account and
debited by that number of shares of Company Stock surrendered by such equivalent
Company stockholder.  Each time the Company declares a dividend on
Company Stock, each Member’s Stock Account will be credited with an amount equal
to that number of shares of Company Stock (in whole shares and fractional
shares, as determined by the Plan Committee) determined by dividing (i) the
amount that would have been paid (or the fair market value thereof, if the
dividend  is not paid in cash) to the Member on the total number of
shares of Company Stock credited to the Member’s Stock Account had that number
of shares of Company Stock been held by such Participant by (ii) the price for
shares of Company Stock, determined by the Plan Committee, as of the dividend
payment date.

     

    Notwithstanding anything is this
Section 3.6(b) to the contrary, the Plan Committee may at any time alter the
effective date and/or take any other action that it deems necessary with respect
to amounts that are to be credited to a Member’s Stock Account so as to
assure  compliance with any policy of the Company respecting insider
trading as may be in effect from time to time.  The Company may also
impose blackout periods pursuant to the requirements of the Sarbanes-Oxley Act
of 2002 whenever the Company determines that circumstances warrant and during
which time, Members may not effect transactions, directly or indirectly, in
Company equity securities.

     

     

    IV.

     

    Vesting and In-Service
Distributions

     

    4.1 Vesting.  A
Member shall be 100% vested in his Account at all times.

     

    4.2 In-Service
Distributions.  Except
in the case of hardship as described in this Section 4.2, in-service
distribution shall not be permitted under the Plan, and Members shall not be
permitted to make withdrawals from the Plan prior to Separation from Service
from the Company.  Effective January 1, 2007, a Member may request
that the Plan Committee distribute all, or a part of, his Account  (or
Stock Account, if any) balance to him if he experiences severe financial
hardship resulting from an illness or accident of the Member, the spouse of the
Member or a dependent (as defined in Section 152(a) of the Code) of the Member,
loss of the Member’s property due to casualty, or other similar extraordinary
and unforeseeable circumstances arising as a result of events beyond the control
of the Member.  The Plan Committee shall have the sole discretion to
determine whether to grant a Member’s withdrawal request under this Section 4.2
and the amount to distribute to the Member; provided, however, that no hardship
distribution shall be made to a Member under this Section 4.2 to the extent that
such hardship is or may be relieved (i) through reimbursement or
compensation by insurance or otherwise, (ii) by liquidation of the Member’s
assets, to the extent the liquidation of the Member’s assets would not itself
cause severe financial hardship, or (iii) by cessation of deferral elections
under the Plan.  The amount of any distributions pursuant to this
Section 4.2 shall be limited to the amount necessary to meet the hardship, plus
amounts necessary to pay taxes reasonably anticipated as a result of the
distribution.  Distribution shall be made on the first regularly
scheduled pay date that coincides with or immediately follows the first day of
the calendar month following the determination by the Plan Committee that a
hardship withdrawal will be permitted.  Members shall not, at any
time, be permitted to borrow from the Plan.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    V.

     

    Payment of
Benefits

     

    5.1 Payment Election
Generally.  In
conjunction with the compensation deferral elections made by a Member pursuant
to Sections 3.1, 3.2 or 3.3 (as modified by Section 3.4), such Member shall
elect the form of payment with respect to such compensation deferral, the
Company Deferrals attributable thereto, and the earnings credited
thereto.  Any such election shall be irrevocable once
made.

     

    5.2 Special Rule for 409A
Transition Period Elections.  Notwithstanding
the provisions of Section 5.1, during a period in 2006 specified by the Plan
Committee, Members shall have a one-time opportunity to change their payment
elections in accordance with applicable Section 409A transition guidance;
provided that a Member cannot in 2006 defer payments that the member otherwise
would receive in 2006 or cause payments that otherwise would be made in a
subsequent year to be made in 2006.  Additionally, in accordance with
Section 409A and any guidance issued thereunder, a Member  may make an
election to change the time and manner of payment of amounts subject to Section
409A on or before December 31, 2008, provided that if any such election is made
during the calendar year ending on December 31, 2008, the change in election (i)
is for amounts not otherwise payable in 2008, and (ii) does not cause an amount
to be paid from a Participant’s Account in 2008.

     

    5.3 Time of
Benefit Payment.  Each Member shall commence payment of his
Account (or Stock Account, if any), including all compensation deferrals, the
Company Deferrals attributable thereto, and the earnings credited thereto, on
the 30th day following the date of the Member’s Separation from Service or, if
such date is not a business day, on the first business day that is at least 30
days after the date of the Member’s Separation from Service; provided, however,
that if the Member is a Specified Employee, such payment shall be made on the
date that is 6 months after the date of the Member’s Separation from Service or
on the next business day if such date is not a business day.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    5.4 Form of Benefit
Payment.  With
respect to each compensation deferral election made by a Member pursuant to
Sections 3.1, 3.2 or 3.3 (as modified by Section 3.4), such Member shall
elect the form of payment with respect to such compensation deferral, the
Company Deferrals attributable thereto and the earnings credited thereto from
one of the following forms:

     

    (a) A lump
sum; or

     

    (b) Installment
payments for a period not less than one year and not more than 10
years.

     

    All
payments shall be made in cash; provided, however, to the extent distributable
amounts are credited to the Member’s Stock Account, such payments shall be made
in shares of Company Stock (with any fractional share interest therein paid in
cash to the extent of the then fair market value thereof).

     

    Installment
payments shall be paid monthly commencing on the date specified in Section
5.3.  The amount of each installment payment shall be determined by
multiplying the amount of the compensation
deferrals made by a Member pursuant to Sections 3.1, 3.2 or 3.3 (as modified by
Section 3.4) which are subject to such
installment form, the Company Deferrals attributable thereto, and the
earnings credited thereto at the time of payment by a fraction, the numerator of
which is one and the denominator of which is the number of remaining installment
payments to be made to the Member.  In the event the total amount
credited to a Member’s Account does not exceed the limit in Section 402(g)(1)(B)
of the Code (which is $15,500 for 2007), the Account shall be paid in a lump
sum.  Notwithstanding the foregoing, in the event that payments under
the Plan are required to be aggregated with payments under any other “account
balance” plan maintained by the Company in order to comply with the requirements
of Section 409A, all payments under the Plan shall be made in a lump
sum.

     

    5.5 Failure to Elect Form of
Payment.  If
a Member fails to elect the form of payment of a compensation deferral, such
compensation deferral, the Company Deferrals attributable thereto and the
earnings credited thereto shall be paid in a cash lump sum, except to the extent
distributable amounts are credited to a Member’s Stock Account, in which case
the payment shall be made in shares of Company Stock (with any fractional share
interest therein paid in cash to the extent of the then fair market value
thereof).

     

    5.6 Death.  In
the event of a Member’s death at a time when amounts are credited to such
Member’s Account (or Stock Account, if any), such amounts shall be paid to such
Member’s designated beneficiary or beneficiaries at the time set forth in
Section 5.3 and in the form elected by the Member pursuant to Section 5.4,
or if no election has been made, pursuant to
Section 5.5.  However, the Member’s designated beneficiary or
beneficiaries may request a cash lump sum payment (except to the extent
distributable amounts are credited to a Member’s Stock Account, in which case
the payment shall be made in shares of Company Stock (with any fractional share
interest therein paid in cash to the extent of the then fair market value
thereof)), to the extent the beneficiary experiences a severe financial hardship
resulting from an illness or accident, loss of the property due to casualty, or
other similar extraordinary and unforeseeable circumstances arising as a result
of events beyond the control of the beneficiary.  The Plan Committee
shall have the sole discretion to determine whether to grant a beneficiary’s
withdrawal request and the amount to distribute to the beneficiary; provided,
however, that no hardship distribution shall be made to a beneficiary to the
extent that such hardship is or may be relieved (i) through reimbursement
or compensation by insurance or otherwise, or (ii) by liquidation of the
beneficiary’s assets, to the extent the liquidation of the beneficiary’s assets
would not itself cause severe financial hardship.  The amount of any
distribution shall be limited to the amount necessary to meet the hardship, plus
amounts necessary to pay taxes reasonably anticipated as a result of the
distribution.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    5.7 Acceleration of
Payment.  The
Plan Committee, in its sole discretion, may accelerate the payment of Member’s
Account (or Stock Account, if any) balance to the Member, or his designated
beneficiary in the event of his death, in a lump sum cash payment (except to the
extent distributable amounts are credited to a Member’s Stock Account, in which
case the payment shall be made in shares of Company Stock (with any fractional
share interest therein paid in cash to the extent of the then fair market value
thereof)) as soon as administratively practicable after the Plan Committee
determines that such acceleration is necessary under one or more of the
following:

    

    (a) to
fulfill a domestic relations order (as defined in Code Section 414(p)(1)(B))
requirement to pay an individual other than the Member;

     

    (b) as
necessary to comply with a certificate of divestiture (as defined in Code
Section 1043(b)(2)) related to a conflict of interest exception under Section
409A;

     

    (c) to pay
the Federal Insurance Contributions Act (FICA) tax imposed under Code Sections
3101 and 3121(a) and (v) on compensation deferred under the Plan (the “FICA
Amount”) and the income tax at source on wages imposed under Code Section 3401
or the corresponding withholding provisions of applicable state, local or
foreign tax laws as a result of the payment of the FICA Amount and the
additional income tax at source on wages attributable to the pyramiding of Code
Section 3401 wages and taxes; provided, however, that the acceleration permitted
under this paragraph (c) shall not exceed the aggregate of the FICA Amount and
the income tax withholding related to such FICA Amount;

     

    (d) to the
extent that the Plan Committee determines that the Plan fails to satisfy the
requirements of Section 409A; provided, however, that such distribution shall
not exceed the amount required to be included in income as a result of the
failure to comply; and

     

    (e) upon
termination of the Plan, but only to the extent then permitted under Section
409A.

     

    5.8 Designation
of Beneficiaries.  Each
Member shall have the right to designate the beneficiary or beneficiaries to
receive distribution of his Account (or Stock Account, if any) in the event of
his death.  Each such designation shall be made by executing the
beneficiary designation form prescribed by the Plan Committee and filing it with
the Plan Committee.  Any such designation may be changed at any time
by execution of a new designation in accordance with this Section
5.8.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    If no such designation is on file with
the Plan Committee at the time of the death of the Member or such designation is
not effective for any reason as determined by the Plan Committee, then the
designated beneficiary or beneficiaries to receive the distribution shall be as
follows:

     

    (a)           If
a Member leaves a surviving spouse, his distribution shall be paid to such
surviving spouse; or

     

    (b)           If
a Member leaves no surviving spouse, his distribution shall be paid to such
Member’s executor or administrator, or to his heirs at law if there is no
administration of such Member’s estate.

     

    5.9 Unclaimed
Benefits.  If
the Plan Committee is unable to locate a Member or beneficiary entitled to a
distribution hereunder, upon the Plan Committee’s determination thereof, such
Member’s or beneficiary’s Account (or Stock Account, if any) shall be forfeited
to the Company.  Notwithstanding the foregoing, if subsequent to any
such forfeiture the Member or beneficiary to whom such distribution is payable
makes a valid claim for such distribution, such forfeited Account (or Stock
Account, if any) shall be restored, without the crediting of interest subsequent
to the forfeiture, and the balance of such Account (or Stock Account, if any)
shall be distributed to such Member or beneficiary as soon as administratively
practicable.

     

    5.10 Delay of Payments Under
Certain Circumstances.  To the extent
permitted by Section 409A, the Plan Committee, in its discretion, may delay
payment to a date after the payment date designated in such paragraphs under the
following circumstances:

     

    (a) Payments Made As Soon As
Practicable After the Specified Date.  Payments will be made as
soon as practicable after the date specified in Section 5.3 and in any event
within the same calendar year or, if later, by the fifteenth day of the third
calendar month following the date specified in Section 5.3.

     

    (b) Payments that Would Violate
Federal Securities Laws or Other Applicable Law.  Payment will
be delayed where the Plan Committee reasonably anticipates that the making of
the payment will violate federal securities laws or other applicable law;
provided that the delayed payment is made at the earliest date at which the Plan
Committee reasonably anticipates that the making of the payment will not cause
such violation.

     

    VI.

     

    Administration of the
Plan

     

    6.1 Plan Committee Powers and
Duties.  The
general administration of the Plan shall be vested in the Plan
Committee.  The Plan Committee shall supervise the administration and
enforcement of the Plan according to the terms and provisions hereof and shall
have all powers necessary to accomplish these purposes, including, but not by
way of limitation, the right, power, authority, and duty:

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (a) To make
rules, regulations, and bylaws for the administration of the Plan that are not
inconsistent with the terms and provisions hereof, and to enforce the terms of
the Plan and the rules and regulations promulgated thereunder by the Plan
Committee;

     

    (b) To
construe in its discretion all terms, provisions, conditions, and limitations of
the Plan;

     

    (c) To
correct any defect or to supply any omission or to reconcile any inconsistency
that may appear in the Plan in such manner and to such extent as it shall deem
in its discretion expedient to effectuate the purposes of the Plan;

     

    (d) To employ
and compensate such accountants, attorneys, investment advisors, and other
agents, employees, and independent contractors as the Plan Committee may deem
necessary or advisable for the proper and efficient administration of the
Plan;

     

    (e) To
determine in its discretion all questions relating to eligibility;

     

    (f) To
determine whether and when a Member has had a Separation from Service with the
Company, and the reason for such Separation from Service;

     

    (g) To make a
determination in its discretion as to the right of any person to a benefit under
the Plan and to prescribe procedures to be followed by distributees in obtaining
benefits hereunder; and

     

    (h) To
receive and review reports from the Trustee as to the financial condition of the
Trust Fund, if any, including its receipts and disbursements.

     

    6.2 Self-Interest of
Members.  No
member of the Plan Committee shall have any right to vote or decide upon any
matter relating solely to himself under the Plan or to vote in any case in which
his individual right to claim any benefit under the Plan is particularly
involved.  In any case in which a Plan Committee member is so
disqualified to act and the remaining members cannot agree, the remaining
members of the Plan Committee shall appoint a temporary substitute member to
exercise all the powers of the disqualified member concerning the matter in
which he is disqualified.

     

    6.3 Claims
Review.  Claims
for Plan benefits and reviews of Plan benefit claims which have been denied or
modified will be processed in accordance with the written Plan claims procedures
established by the Plan Committee, which procedures are hereby incorporated by
reference as a part of the Plan.

     

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

     

    (b) Provide
specific reference 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 Member,
his beneficiary, or representative to perfect the claim and an explanation of
why such material or information is necessary; and

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

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

     

    In the event a claim for Plan benefits
is denied or modified, if the Member, his beneficiary, or a representative of
such Member or beneficiary desires to have such denial or modification reviewed,
he must, within sixty days following receipt of the notice of such denial or
modification, submit a written request for review by the Plan Committee of its
initial decision.  In connection with such request, the Member, his
beneficiary, or the representative of such Member or beneficiary may review any
pertinent documents upon which such denial or modification was based and may
submit issues and comments in writing.  Within sixty days following
such request for review the Plan Committee shall, after providing a full and
fair review, render its final decision in writing to the Member, his beneficiary
or the representative of such Member or beneficiary 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 Plan 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 required,
written notice of the extension shall be furnished to the Member, beneficiary,
or the representative of such Member or beneficiary prior to the commencement of
the extension period.

     

    6.4 Company to Supply
Information.  The
Company shall supply full and timely information to the Plan Committee and/or
Compensation Committee, including, but not limited to, information relating to
each Member’s compensation, age, retirement, death, or other cause of
termination of employment and such other pertinent facts as the Plan Committee
may require.  The Company shall advise the Trustee, if any, of such of
the foregoing facts as are deemed necessary for the Trustee to carry out the
Trustee’s duties under the Plan and the Trust Agreement.  When making
a determination in connection with the Plan, the Plan Committee and Compensation
Committee shall be entitled to rely upon the aforesaid information furnished by
the Company.

     

    6.5 Indemnity.  The
Company shall indemnify and hold harmless each member of both the Plan Committee
and the Compensation Committee against any and all expenses and liabilities
arising out of his administrative functions or fiduciary responsibilities,
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 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.

     

    VII.

     

    Administration of
Funds

     

    7.1 Payment of
Expenses.  All
expenses incident to the administration of the Plan and Trust, including but not
limited to, legal, accounting, Trustee fees, and expenses of the Plan Committee
and the Compensation Committee, may be paid by the Company and, if not paid by
the Company, shall be paid by the Trustee from the Trust Fund, if
any.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    7.2 Trust Fund
Property.  All
income, profits, recoveries, contributions, forfeitures and any and all moneys,
securities and properties of any kind at any time received or held by the
Trustee, if any, shall be held for investment purposes as a commingled Trust
Fund pursuant to the terms of the Trust Agreement.  The Plan Committee
shall maintain one or more accounts in the name of each Member, but the
maintenance of an account designated as the Account (or Stock Account, if any)
of a Member shall not mean that such Member shall have a greater or lesser
interest than that due him by operation of the Plan and shall not be considered
as segregating any funds or property from any other funds or property contained
in the commingled fund.  No Member shall have any title to any
specific asset in the Trust Fund, if any.

     

    VIII.

     

    Nature of the
Plan

     

    The
Company intends and desires by the adoption of the Plan to recognize the value
to the Company of the past and present services of employees covered by the Plan
and to encourage and assure their continued service with the Company by making
more adequate provision for their future retirement security.  The
Plan is intended to constitute an unfunded, unsecured plan of deferred
compensation for a select group of management or highly compensated employees of
the Company.  Plan benefits herein provided are to be paid out of the
Company’s general assets.  The Plan constitutes a mere promise by the
Company to make benefit payments in the future and Members have the status of
general unsecured creditors of the Company.  Nevertheless, subject to
the terms hereof and of the Trust Agreement, if any, the Company may transfer
money or other property to the Trustee and the Trustee shall pay Plan benefits
to Members and their beneficiaries out of the Trust Fund.

     

    The Plan
Committee, in its sole discretion, may establish the Trust and direct the
Company to enter into the Trust Agreement and adopt the Trust for purposes of
the Plan.  In such event, the Company shall remain the owner of all
assets in the Trust Fund and the assets shall be subject to the claims of the
Company’s creditors if the Company ever becomes insolvent.  For
purposes hereof, the Company shall be considered “insolvent” if (a) the Company
is unable to pay its debts as they become due, or (b) the Company is subject to
a pending proceeding as a debtor under the United Sates Bankruptcy Code (or any
successor federal statute).  The chief executive officer of the
Company and its Board shall have the duty to inform the Trustee in writing if
the Company becomes insolvent.  Such notice given under the preceding
sentence by any party shall satisfy all of the parties’ duty to give
notice.  When so informed, the Trustee shall suspend payments to the
Members and hold the assets for the benefit of the Company’s general
creditors.  If the Trustee receives a written allegation that the
Company is insolvent, the Trustee shall suspend payments to the Members and hold
the Trust Fund for the benefit of the Company’s general creditors, and shall
determine within the period specified in the Trust Agreement whether the Company
is insolvent.  If the Trustee determines that the Company is not
insolvent, the Trustee shall resume payments to the Members.  No
Member or beneficiary shall have any preferred claim to, or any beneficial
ownership interest in, any assets of the Trust Fund.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    IX.

     

    Participating
Employers

     

    The
Compensation Committee may designate any entity or organization eligible by law
to participate in the Plan as an Employer by written instrument delivered to the
Secretary of the Company and the designated Employer.  Such written
instrument shall specify the effective date of such designated participation,
may incorporate specific provisions relating to the operation of the Plan which
apply to the designated Employer only and shall become, as to such designated
Employer and its employees, a part of the Plan.  Each designated
Employer shall be conclusively presumed to have consented to its designation and
to have agreed to be bound by the terms of the Plan and any and all amendments
thereto upon its submission of information to the Compensation Committee
required by the terms of or with respect to the Plan; provided, however, that
the terms of the Plan may be modified so as to increase the obligations of an
Employer only with the consent of such Employer, which consent shall be
conclusively presumed to have been given by such Employer upon its submission of
any information to the Compensation Committee required by the terms of or with
respect to the Plan.  Except as modified by the Compensation Committee
in its written instrument, 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 Member, if not paid from the Trust
Fund.

     

    X.

     

    Miscellaneous

     

    10.1 Not Contract of
Employment.  The
adoption and maintenance of the Plan shall not be deemed to be a contract
between the Company 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 Company or to restrict the
right of the Company to discharge any person at any time nor shall the Plan be
deemed to give the Company the right to require any person to remain in the
employ of the Company or to restrict any person’s right to terminate his
employment at any time.

     

    10.2 Alienation of Interest
Forbidden.  The
interest of a Member or his beneficiary or beneficiaries hereunder may not be
sold, transferred, assigned, or encumbered in any manner, either voluntarily or
involuntarily, and any attempt so to anticipate, alienate, sell, transfer,
assign, pledge, encumber, or charge the same shall be null and void; neither
shall the benefits hereunder be liable for or subject to the debts, contracts,
liabilities, engagements or torts of any person to whom such benefits or funds
are payable, nor shall they be an asset in bankruptcy or subject to garnishment,
attachment or other legal or equitable proceedings.

     

    10.3 Withholding.  All
deferrals and payments provided for hereunder shall be subject to applicable
withholding and other deductions as shall be required of the Company under any
applicable local, state or federal law.

     

    10.4 Amendment and
Termination.  The
Compensation Committee may from time to time, in its discretion, amend, in whole
or in part, any or all of the provisions of the Plan; provided, however, that no
amendment may be made that would impair the rights of a Member with respect to
amounts already allocated to his Account (or Stock Account, if any) except that
an amendment to change phantom investment options or an amendment that the
Compensation Committee determines is necessary or desirable to comply with
Section 409A shall not require the consent of any Member.  The
Compensation Committee may terminate the Plan at any time.  Any such
amendment to or termination of the Plan shall be in writing and signed by a
member of the Compensation Committee.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    10.5 Voting Company
Stock.  Each
Member who has a Stock Account shall be entitled to provide directions to the
Plan Committee to cause the Plan Committee to similarly direct the Trustee of
the Trust to vote, on any matter presented for a vote to the stockholders of the
Company, that number of whole shares of Company Stock held by the Trust
equivalent to the number of whole shares of Company Stock credited to the
Member’s Stock Account.  The Plan Committee shall arrange for
distribution to all such Members in a timely manner all communications directed
generally to the stockholders of the Company as to which their votes are
solicited.  If the Trust ever holds fewer shares of Company Stock than
there are shares allocated to Stock Accounts under the Plan as to which timely
and proper directions have been received from the applicable Members, the Plan
Committee will direct the Trustee to vote all shares held in the Trust in the
same proportion as the total shares covered by timely and proper directions that
have been directed to be voted.

     

    10.6 Severability.  If
any provision of the Plan shall be held illegal or invalid for any reason, said
illegality or invalidity shall not affect the remaining provisions hereof;
instead, each provision shall be fully severable and the Plan shall be construed
and enforced as if said illegal or invalid provision had never been included
herein.

     

    10.7 Governing
Laws.  All
provisions of the Plan shall be construed in accordance with the laws of Texas
except to the extent preempted by federal law.

     

    10.8 Change of
Control.  Notwithstanding
any provision of the Plan to the contrary, the Company, by resolution of the
Compensation Committee, shall have the full discretion and power to terminate
the Plan within 30 days preceding or 12 months after a Change of Control of the
Company and, in the event of such termination, the Company shall distribute each
Member’s account within 12 months of the date of such termination.

     

    10.9 Compliance with Section
409A.  The Company
intends that the Plan by its terms and in operation meet the requirements of
Section 409A so that compensation deferred under the Plan (and applicable
investment earnings) shall not be included in income under Section
409A.  Any ambiguities in the Plan shall be construed to effect this
intent.  If any provision of the Plan is found to be in violation of
Section 409A, then such provision shall be deemed to be modified or restricted
to the extent and in the manner necessary to render such provision in conformity
with Section 409A, or shall be deemed excised from the Plan, and the Plan shall
be construed and enforced to the maximum extent permitted by the Section 409A as
if such provision had been originally incorporated in the Plan as so modified or
restricted, or as if such provision had not been originally incorporated in the
Plan, as the case may be.

     

     

     

     

    
16nfx8k-11062008ex10196.htm

    
      
         

      

      
         

        
        

      

      
         

        
          Exhibit
10.19.6

        

      

    

    THIRD
AMENDED AND RESTATED

     

    CHANGE
OF CONTROL SEVERANCE AGREEMENT

     

    This
Third Amended and Restated Change of Control Severance Agreement (this
“Agreement”) between Newfield Exploration Company, a Delaware corporation (the
“Company”), and __________ (“Executive”) is made and entered into effective as
of November 7, 2008.

     

    WHEREAS, Executive is a key
executive of the Company;

     

    WHEREAS, it is in the best
interest of the Company and its stockholders if key executives can approach
material business development decisions objectively and without concern for
their personal situation;

     

    WHEREAS, the Company
recognizes that the possibility of a Change of Control (as defined below) of the
Company may result in the early departure of key executives to the detriment of
the Company and its stockholders;

     

    WHEREAS, in order to help
retain and motivate key management and to help ensure continuity of key
management, the Board of Directors of the Company (the “Board”) authorized and
directed the Company to enter into the initial version of this Agreement, which
was effective as of February 17, 2005 (the “Effective Date”);

     

    WHEREAS, Executive and the
Company (i) amended this Agreement effective as of February 14, 2006 to provide
for the vesting of stock options, (ii) amended and restated this Agreement
effective as of March 9, 2007 to address restricted stock units and certain
other matters and (iii) amended and restated this Agreement effective as of July
26, 2007 to bring it into compliance with Section 409A of the Internal Revenue
Code of 1986 (as so amended and restated effective as of July 26, 2007, the
“2007 Agreement”) and;

     

    WHEREAS, Executive and the
Company desire to further amend and restate this Agreement to conform the terms
of this Agreement to those of the senior executive officers of the
Company;

     

    NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and Executive agree to amend and restate the 2007
Agreement as set forth herein.

     

    
      	
              1.  

            	
              Term
      of Agreement.

            

    

     

    
      	
               
      

            	
              A.

            	
              The
      term of this Agreement (the “Term”) shall commence on the Effective Date
      and shall continue in effect through the third anniversary of the
      Effective Date; provided, however,
      commencing on the first day following the Effective Date and on each day
      thereafter, the Term of this Agreement shall automatically be extended for
      one additional day unless the Board shall give written notice to Executive
      that the Term shall cease to be so extended in which event the Agreement
      shall terminate on the third anniversary of the date such notice is
      given.

            

    

     

    
      	
               
      

            	
              B.

            	
              Notwithstanding
      anything in this Agreement to the contrary, if a Change of Control occurs
      during the Term of this Agreement, the Term shall automatically be
      extended for the 36-month period following the date of the Change of
      Control; provided,
      however, that in no event shall such extension of the Term expire
      prior to the end of the 30-day period described in Section 2E below,
      if applicable.

            

    

     

    
      	
               
      

            	
              C.

            	
              Termination
      of this Agreement shall not alter or impair any rights of Executive
      arising hereunder on or before such
termination.

            

    

     

    
      	
              2.  

            	
              Certain
      Definitions.

            

    

     

    
      	
               
      

            	
              A.

            	
              “Bonus” shall
      mean an amount equal to one-half of the total of all cash bonuses (whether
      paid or deferred) awarded to Executive by the Company with respect to (i)
      the two most recent calendar years ending prior to Executive’s termination
      of employment or (ii) if greater, the two most recent calendar years
      ending prior to the Change of
Control.

            

    

     

    
      	
               
      

            	
              B.

            	
              “Cause” shall
      mean:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      willful and continued failure by Executive to substantially perform
      Executive’s duties with the Company (other than any such failure resulting
      from Executive’s incapacity due to physical or mental
      illness);

            

    

     

    
      	
               
      

            	
              (ii)

            	
              Executive’s
      conviction of or plea of nolo contendre to a
      felony or a misdemeanor involving moral
  turpitude;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Executive
      willfully engages in gross misconduct materially and demonstrably
      injurious to the Company;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              Executive’s
      material violation of any material policy of the Company;
    or

            

    

     

    
      	
               
      

            	
              (v)

            	
              Executive’s
      having been the subject of any order, judicial or administrative, obtained
      or issued by the Securities and Exchange Commission, for any securities
      violation involving fraud.

            

    

     

    For
purposes of clause (i) of this definition, no act, or failure to act, on
Executive’s part shall be deemed “willful” unless done, or omitted to be done,
by Executive not in good faith and without reasonable belief that Executive’s
act, or failure to act, was in the best interest of the Company.  The
determination of whether Cause exists must be made by a resolution duly adopted
by the affirmative vote of a majority of the entire membership of the Board at a
meeting of the Board that was called for the purpose of considering such
termination (after 10 days’ notice to Executive and an opportunity for
Executive, together with Executive’s counsel, to be heard before the Board and,
if possible, to cure the breach that was the alleged basis for Cause prior to
the meeting of the Board) finding that, in the good faith opinion of the Board,
Executive was guilty of conduct constituting Cause and specifying the
particulars thereof in detail.

     

    
      	
               
      

            	
              C.

            	
              “Change of
      Control” shall mean the occurrence of any of the
      following:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Company is not the surviving Person (as such term is defined below) in any
      merger, consolidation or other reorganization (or survives only as a
      subsidiary of another Person);

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      consummation of a merger or consolidation of the Company with another
      Person pursuant to which less than 50% of the outstanding voting
      securities of the surviving or resulting corporation are issued in respect
      of the capital stock of the
Company;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              the
      Company sells, leases or exchanges all or substantially all of its assets
      to any other Person;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      Company is to be dissolved and
liquidated;

            

    

     

    
      	
               
      

            	
              (v)

            	
              any
      Person, including a “group” as contemplated by Section13(d)(3) of the
      Securities Exchange Act of 1934, acquires or gains ownership or control
      (including the power to vote) of more than 50% of the outstanding shares
      of the Company’s voting stock (based upon voting power);
  or

            

    

     

    
      	
               
      

            	
              (vi)

            	
              as
      a result of or in connection with a contested election of directors, the
      Persons who were directors of the Company before such election cease to
      constitute a majority of the Board.

            

    

     

    Notwithstanding
the foregoing, the definition of “Change of Control” shall not include (a) any
merger, consolidation, reorganization, sale, lease, exchange, or similar
transaction involving solely the Company and one or more Persons that were
wholly owned, directly or indirectly, by the Company immediately prior to such
event or (b) any event that is not a “change in control” for purposes of Section
409A of the Code.  For purposes of this definition, “Person” shall
mean any individual, partnership, corporation, limited liability company, trust,
incorporated or unincorporated organization or association or other legal entity
of any kind.

     

    
      	
               
      

            	
              D.

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

            

    

     

    
      	
               
      

            	
              E.

            	
              “Good Reason”
      shall mean:

            

    

     

    
      	
               
      

            	
              (i)

            	
              a
      material reduction in Executive's authority, duties, titles, status or
      responsibilities from those in effect immediately prior to the Change of
      Control or the assignment to Executive of duties or responsibilities
      inconsistent in any material respect from those of Executive in effect
      immediately prior to the Change of
Control;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              any
      reduction in Executive’s annual rate of base
  salary;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              any
      failure by the Company to provide Executive with a combined total of
      annual base salary and annual bonus compensation at a level at least equal
      to the combined total of Executive’s annual rate of base salary with the
      Company in effect immediately prior to the Change of Control and one-half
      of the total of all cash bonuses (whether paid or deferred) awarded to
      Executive by the Company with respect to the two most recent calendar
      years ending prior to the Change of Control, with a failure being deemed
      to have occurred in the event that payments are made to Executive in a
      form other than cash, base salary is deferred at other than Executive’s
      election, bonus compensation is not awarded within two and one-half months
      following the end of the calendar year to which it relates, bonus
      compensation is deferred at other than Executive’s election at a rate in
      excess of the average ratio of deferred bonuses to currently paid bonuses
      awarded to Executive with respect to the two most recent calendar years
      ending prior to the Change of Control, or bonus compensation is deferred
      at other than Executive’s election in a manner that is not substantially
      similar in terms of Executive’s vested rights and timing of payments to
      the manner in which deferred bonuses were awarded to Executive with
      respect to the two most recent calendar years ending prior to the Change
      of Control;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      Company fails to obtain a written agreement from any successor or assigns
      of the Company to assume and perform this Agreement as provided in Section
      6 hereof; or

            

    

     

    
      	
               
      

            	
              (v)

            	
              the
      relocation of the Company’s principal executive offices by more than 50
      miles from where such offices were located immediately prior to the Change
      of Control or Executive is based at any office other than the principal
      executive offices of the Company, except for travel reasonably required in
      the performance of Executive’s duties and reasonably consistent with
      Executive’s travel prior to the Change of
  Control.

            

    

     

    Unless
Executive terminates his employment upon or within 30 days following the later
of an act or omission to act by the Company constituting a Good Reason
hereunder, Executive’s continued employment thereafter shall constitute
Executive’s consent to, and a waiver of Executive’s rights with respect to, such
act or failure to act.  Executive’s right to terminate Executive’s
employment for Good Reason shall not be affected by Executive’s incapacity due
to physical or mental illness.  Executive’s determination that an act
or failure to act constitutes Good Reason shall be presumed to be valid unless
such determination is deemed by an arbitrator to be unreasonable and not to have
been made in good faith by Executive.

     

    
      	
               
      

            	
              F.

            	
              “Protected
      Period” shall mean the 36-month period beginning on the effective
      date of a Change of Control; provided, however, that
      in no event shall such period expire prior to the end of the 30-day period
      described in Section 2E above, if
  applicable.

            

    

     

    
      	
               
      

            	
              G.

            	
              “Release” shall
      mean a comprehensive release and waiver agreement in substantially the
      same form as that attached hereto as Exhibit
A.

            

    

     

    
      	
               
      

            	
              H.

            	
              “Separation from
      Service” shall mean a “separation from service” within the meaning
      of Section 409A(a)(2)(A)(i) of the
Code.

            

    

     

    
      	
               
      

            	
              I.

            	
              “Termination Base
      Salary” shall mean Executive’s annual base salary with the Company
      at the rate in effect immediately prior to the Change of Control or, if a
      greater amount, Executive's annual base salary at the rate in effect at
      any time thereafter.

            

    

     

    Change
of Control Severance Benefits

     

    
      	
              3.  

            	
              Severance
      Benefits.  If (a) Executive terminates his employment
      with the Company during the Protected Period for a Good Reason event or
      (b) the Company terminates Executive's employment during the Protected
      Period other than (i) for Cause or (ii) due to Executive’s inability to
      perform the primary duties of his position for at least 180 consecutive
      days due to a physical or mental impairment and (c) as a result of such
      termination of employment Executive has a Separation from Service,
      Executive shall receive the following compensation and benefits from the
      Company, provided that, in the cases of Section 3A, 3C and 3D, Executive
      executes and does not revoke the
Release:

            

    

     

    
      	
               
      

            	
              A.

            	
              On
      the date that is six months after the date Executive has a Separation from
      Service with the Company or on the next business day if such date is not a
      business day, the Company shall pay to Executive in a lump sum, in cash,
      an amount equal to three times the sum of Executive’s (i) Termination Base
      Salary and (ii) Bonus.

            

    

     

    
      	
               
      

            	
              B.

            	
              Except
      to the extent specifically set forth in a grant agreement under any
      employee stock incentive plan of the Company, as of the date of
      Executive’s termination of employment (i) all restricted shares of Company
      stock of Executive (whether granted before or after the Effective Date)
      shall become 100% vested and all restrictions thereon shall lapse and the
      Company shall promptly deliver to Executive unrestricted shares of Company
      stock, (ii) all restricted stock units of Executive (whether granted
      before or after the Effective Date) shall become 100% vested and all
      restrictions thereon shall lapse and the Company shall settle such units
      in the manner provided in the applicable grant agreement and (iii) each
      then outstanding Company stock option of Executive (whether granted before
      or after the Effective Date) shall become 100% exercisable; provided, however, that
      settlement of restricted stock units as contemplated by clause (ii) above
      shall not be made prior to the date that is six months after the date
      Executive has a Separation from Service with the Company or on the next
      business day if such date is not a business
day.

            

    

     

    
      	
               
      

            	
              C.

            	
              For
      the six month period following the date on which Executive has a
      Separation from Service, the Company shall reimburse Executive for (1) if
      Executive or Executive’s dependents are eligible for and elect continued
      health coverage under a group health plan of the Company or an affiliate
      which is provided to satisfy the requirements of Section 4980B of the Code
      (“COBRA Coverage”), the actual premium charged to Executive or Executive’s
      dependents for such COBRA Coverage or (2) if Executive is eligible to
      retire and receive retiree medical coverage, the actual premium charged to
      Executive for such retiree medical coverage for Executive and each of
      Executive’s dependents eligible for such retiree medical
      coverage.  Such reimbursements (which shall be taxable income to
      Executive) shall be paid to Executive directly or to the applicable group
      health plan, as determined by the Company, on or as soon as practicable
      after each due date for each COBRA Coverage premium or retiree medical
      premium.  On the date that is six months after the date
      Executive has a Separation from Service as described in this Section 3 or
      on the next business day if such date is not a business day, the Company
      shall pay to Executive in a lump sum, in cash, the sum of (1) an amount
      such that after payment of all applicable income taxes, Executive retains
      an amount equal to thirty times the amount of the
      applicable COBRA Coverage premium for such Executive on such date and (2)
      an amount such that Executive shall, after payment of all income taxes
      owed by Executive, retain an amount sufficient to pay all income taxes
      owed on the reimbursements for COBRA Coverage premiums or retiree medical
      premiums paid during the six month period following the date on which
      Executive has a Separation from
Service.

            

    

     

    
      	
               
      

            	
              D.

            	
              Throughout
      the period of 36 months beginning on the date Executive has a Separation
      from Service with the Company or until Executive begins other full-time
      employment with a new employer, whichever occurs first, Executive shall be
      entitled to receive ongoing outplacement services, paid by the Company up
      to an aggregate cost not in excess of $30,000, with a nationally prominent
      executive outplacement service firm selected by the Company and reasonably
      acceptable to Executive.

            

    

     

    For the
final calendar year containing the Protected Period, in the event that the
Company fails to award Executive prorated bonus compensation with respect to the
portion of such calendar year prior to the expiration of the Protected Period in
a manner that does not constitute a failure under Section 2E(iii), such
failure shall be deemed to be an event that constitutes Good Reason and, if
Executive terminates his employment upon or within 30 days following such
failure, then such termination shall be deemed to be a termination of employment
by Executive for Good Reason occurring during the Protected Period and
Executive’s rights to benefits hereunder with respect to such termination shall
be deemed to have arisen prior to the expiration of the Term.

     

    The
Company may withhold from any amounts or benefits payable under this Agreement
all such taxes as it shall be required to withhold pursuant to any applicable
law or regulation.

     

    Any
payment not timely made by the Company under this Agreement shall bear interest
at the highest nonusurious rate permitted by applicable law.

     

    
      	
              4.  

            	
              Parachute
      Tax Gross Up.

            

    

     

    If any
payment made, or benefit provided, to or on behalf of Executive pursuant to this
Agreement or otherwise (“Payments”) results in Executive being subject to the
excise tax imposed by Section 4999 of the Code (or any successor or similar
provision) (“Excise Tax”), the Company shall, on the date that is six months
after the date Executive has a Separation from Service with the Company, or on
the next business day if such date is not a business day, pay Executive an
additional amount in cash (the “Additional Payment”) such that after payment by
Executive of all taxes, including, without limitation, any income taxes and
Excise Tax imposed on the Additional Payment, Executive retains an amount of the
Additional Payment equal to the Excise Tax imposed on the
Payments.  Such determinations shall be made by the Company’s
independent certified public accountants.

     

    
      	
              5.  

            	
              No
      Mitigation.

            

    

     

    Executive
shall not be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment or otherwise nor, except as provided in
Sections 3C and 3D, shall the amount of any payment or benefit provided for in
this Agreement be reduced as the result of employment by another employer or
self-employment, by offset against any amount claimed to be owed by Executive to
the Company or otherwise, except that any severance payments or benefits that
Executive is entitled to receive pursuant to a Company severance plan or program
for employees in general shall reduce the amount of payments and benefits
otherwise payable or to be provided to Executive under this
Agreement.

     

    
      	
              6.  

            	
              Successor
      Agreement.

            

    

     

    The
Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to assume expressly in writing on or prior to the
effective date of such succession and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to perform
if no succession had taken place.  Failure of the successor to so
assume as provided herein shall constitute a breach of this Agreement and
entitle Executive to the payments and benefits hereunder as if triggered by a
termination of Executive by the Company other than for Cause on the date of such
succession.

     

    
      	
              7.  

            	
              Indemnity.

            

    

     

    In any
situation where under applicable law the Company has the power to indemnify,
advance expenses to and defend Executive in respect of any judgments, fines,
settlements, loss, cost or expense (including attorneys fees) of any nature
related to or arising out of Executive's activities as an agent, employee,
officer or director of the Company or in any other capacity on behalf of or at
the request of the Company, then the Company shall promptly on written request,
fully indemnify Executive, advance expenses (including attorney's fees) to
Executive and defend Executive to the fullest extent permitted by applicable
law, including but not limited to making such findings and determinations and
taking any and all such actions as the Company may, under applicable law, be
permitted to have the discretion to take so as to effectuate such
indemnification, advancement or defense.  Such agreement by the
Company shall not be deemed to impair any other obligation of the Company
respecting Executive's indemnification or defense otherwise arising out of this
or any other agreement or promise of the Company under any statute.

     

    
      	
              8.  

            	
              Notices.

            

    

     

    All
notices and other communications hereunder shall be in writing and shall be
given by hand delivery to the other party or by registered or certified mail,
return receipt requested, postage prepaid, addressed, in either case, to the
Company’s headquarters or to such other address as either party shall have
furnished to the other in writing in accordance herewith.  Notices and
communications shall be effective when actually received by the
addressee.

     

    
      	
              9.  

            	
              Arbitration.

            

    

     

    Any
dispute about the validity, interpretation, effect or alleged violation of this
Agreement (an “arbitrable dispute”) must be submitted to confidential
arbitration in Houston, Texas.  Arbitration shall take place before an
experienced employment arbitrator licensed to practice law in such state and
selected in accordance with the Model Employment Arbitration Procedures of the
American Arbitration Association.  Arbitration shall be the exclusive
remedy of any arbitrable dispute.  The Company shall bear all fees,
costs and expenses of arbitration, including its own, those of the arbitrator
and those of Executive unless the arbitrator provides otherwise with respect to
the fees, costs and expenses of Executive; in no event shall Executive be
chargeable with the fees, costs and expenses of the Company or the
arbitrator.  Should any party to this Agreement pursue any arbitrable
dispute by any method other than arbitration, the other party shall be entitled
to recover from the party initiating the use of such method all damages, costs,
expenses and attorneys’ fees incurred as a result of the use of such
method.  Notwithstanding anything herein to the contrary, nothing in
this Agreement shall purport to waive or in any way limit the right of any party
to seek to enforce any judgment or decision on an arbitrable dispute in a court
of competent jurisdiction.  Each party hereby irrevocably submits to
the exclusive jurisdiction of the state and federal courts in Houston, Texas,
for the purposes of any proceeding arising out of this Agreement.

     

    
      	
              10.  

            	
              Governing
      Law.

            

    

     

    This
Agreement will be governed by and construed in accordance with the laws of the
State of Texas without regard to conflicts of law principles.

     

    
      	
              11.  

            	
              Entire
      Agreement.

            

    

     

    This
Agreement is an integration of the parties’ agreement and no agreement or
representatives, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not set forth
expressly in this Agreement.

     

    
      	
              12.  

            	
              Severability.

            

    

     

    The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement,
which shall remain in full force and effect.

     

    
      	
              13.  

            	
              Amendment
      and Waivers.

            

    

     

    No
provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing and signed by
Executive and such member of the Board as may be specifically authorized by the
Board.  No waiver by either party hereto at any time of any breach by
the other party hereto of, or in compliance with, any condition or provision of
this Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time.

     

    
      	
              14.  

            	
              Rights
      to Value of Certain Overriding Royalty
  Interests.

            

    

     

    Executive
acknowledges and agrees that upon a change of control (as defined in the
Newfield Exploration Company Second Amended and Restated 2003 Incentive
Compensation Plan (the “ICP”)) (A) the ICP will terminate and (B) Executive will
have no further rights with respect to the ICP or the Newfield Employee 1993
Incentive Compensation Plan (as amended, the “1993 Plan”) except for the right
to receive payments with respect to outstanding Deferred Awards (as defined in
the ICP) and outstanding Deferred Incentive Compensation Awards (as defined in
the 1993 Plan).

     

    
      	
              15.  

            	
              Delay
      of Payments Under Certain
Circumstances.

            

    

     

    To the
extent permitted by Section 409A of the Code, the Company, in its discretion,
may delay payment to a date after the payment date designated in Section 3 or 4
if:

     

    
      	
               
      

            	
              A.

            	
              such
      payment will be made as soon as practicable after the date specified in
      paragraph 3 or 4 and in any event within the same calendar year or, if
      later, by the fifteenth day of the third calendar month following the date
      specified in paragraph 3 or 4; or

            

    

     

    
      	
               
      

            	
              B.

            	
              the
      Company reasonably anticipates that the making of the payment will violate
      federal securities laws or other applicable law; provided that the
      delayed payment is made at the earliest date at which the Company
      reasonably anticipates that the making of the payment will not cause such
      violation.

            

    

     

    
      	
              16.  

            	
              Compliance with Section
      409A.  The Company and Executive intend that this
      Agreement by its terms and in operation meet the requirements of Section
      409A of the Code so that compensation deferred under this Agreement (and
      applicable investment earnings) shall not be subject to tax under Section
      409A of the Code.  Any ambiguities in this Agreement shall be
      construed to effect this intent.  If any provision of this
      Agreement is found to be in violation of Section 409A of the Code, then
      such provision shall be deemed to be modified or restricted to the extent
      and in the manner necessary to render such provision in conformity with
      Section 409A of the Code, or shall be deemed excised from this Agreement,
      and this Agreement shall be construed and enforced to the maximum extent
      permitted by Section 409A of the Code as if such provision had been
      originally incorporated in this Agreement as so modified or restricted, or
      as if such provision had not been originally incorporated in this
      Agreement, as the case may be.

            

    

     

    
      	
               

            	 

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
Company and Executive have executed this Agreement effective as of the date
first written above.

     

    NEWFIELD EXPLORATION
COMPANY

     

    By:  _________________________________

     

    Name:
_______________________________

     

    Title:
________________________________

     

    

     

    EXECUTIVE

     

    _____________________________________

    

    

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
A

     

    AGREEMENT
AND RELEASE

     

    THIS
AGREEMENT AND RELEASE is by and between _____________ (“Executive”) and Newfield
Exploration Company (“Newfield”), a Delaware corporation, having its principal
place of business in Houston, Texas.

     

    WITNESSETH:

     

    1. Termination.  Executive’s
employment with Newfield will be terminated effective  _, .  Executive
acknowledges and agrees that he has no authority to act for, and will not act
for, Newfield in any capacity on or after the date on which he is
terminated.  Executive may not execute this Agreement and Release
until on or after the date on which Executive’s employment is
terminated.

     

    2. Consideration.  Within
10 business days after Executive signs and returns this Agreement and Release,
Newfield will provide Executive with the severance payment set forth in Section
3 of that certain Third Amended and Restated Change of Control Severance
Agreement entered into between Executive and Newfield (the “Severance
Agreement”) which is attached hereto and made a part of this Agreement and
Release for all purposes.  This Agreement and Release is entered into
by Executive in return for Newfield’s promises herein and in the Severance
Agreement to provide the severance payment and other benefits to Executive as
provided in the Severance Agreement, which Executive acknowledges and agrees to
be good and sufficient consideration to which Executive is not otherwise
entitled.

     

    3. Prior Rights and
Obligations.  Except as herein set forth, this Agreement and
Release extinguishes all rights, if any, which Executive may have, and
obligations, if any, Newfield may have, contractual or otherwise, relating to
the employment or termination of employment of Executive with Newfield or any of
the other Newfield Parties (as defined in Paragraph 7 below) including without
limitation, all rights or benefits he may have under any employment contract,
incentive compensation plan, bonus plan or stock option plan with any Newfield
Party.

     

    4. Company
Assets.  Executive hereby represents and warrants that he has
no claim or right, title or interest in any property designated on any Newfield
Party’s books as property or assets of any of the Newfield
Parties.  Promptly after the effective date of his resignation,
Executive shall deliver to Newfield any such property in his possession or
control, including, if applicable and without limitation, his personal computer,
cellular telephone, keys and credit cards furnished by any Newfield Party for
his use.

     

    5. Proprietary and Confidential
Information.  Executive agrees and acknowledges that the
Newfield Parties have developed and own valuable “Proprietary and Confidential
Information” which constitutes valuable and unique property including, without
limitation, concepts, ideas, plans, strategies, analyses, surveys, and
proprietary information related to the past, present or anticipated business of
the various Newfield Parties.  Except as may be required by law,
Executive agrees that he will not at any time disclose to others, permit to be
disclosed, use, permit to be used, copy or permit to be copied, any such
Proprietary and Confidential Information (whether or not developed by Executive)
without Newfield’s prior written consent.  Except as may be required
by law, Executive further agrees to maintain in confidence any Proprietary and
Confidential Information of third parties received or of which he has knowledge
as a result of his employment with Newfield or any Newfield Party.

     

    6. Cooperation.  Executive
shall cooperate with the Newfield Parties to the extent reasonably required in
all matters relating to his employment or the winding up of his pending work on
behalf of any Newfield Party and the orderly transfer of any such pending work
as designated by Newfield.  This obligation of cooperation shall
continue indefinitely subject to Executive’s reasonable availability and shall
include, without limitation, assisting Newfield and its counsel in preparing and
defending against any claims which may be brought against Newfield or any
Newfield Party or responding to any inquiry by any governmental agency or stock
exchange.  Newfield’s requests for Executive’s cooperation as may be
required from time to time shall be as commercially reasonable and Executive
agrees that he shall be commercially reasonable in providing such cooperation,
taking into account the needs of the Newfield Parties and the position he may
have with another employer at the time such cooperation is
required.  Executive shall take such further action and execute such
further documents as may be reasonably necessary or appropriate in order to
carry out the provisions and purposes of this Agreement and
Release.

     

    7. Newfield
Parties.  Executive agrees that Newfield, its parent, sister,
affiliated and subsidiary companies, past and present, and their respective
employees, officers, directors, stockholders, agents, representatives, partners,
predecessors and successors, past or present, and all benefit plans sponsored by
any of them, past or present, shall be defined collectively, including Newfield,
as the “Newfield Parties” and each of them, corporate or individual,
individually as a “Newfield Party.”

     

    8. Executive’s Warranty and
Representation.  Executive represents, warrants and agrees that
he has not filed any claims, appeals, complaints, charges or lawsuits against
any of the Newfield Parties with any governmental agency or
court.  Executive also represents, warrants and agrees that, except as
prohibited by law, he will not file or permit to be filed or accept benefit from
any claim, complaint or petition filed with any court by him or on his behalf at
any time hereafter; provided, however, this shall not limit Executive from
filing a Demand for Arbitration for the sole purpose of enforcing his rights
under this Agreement and Release.  Further, Executive represents and
warrants that no other person or entity has any interest or assignment of any
claims or causes of action, if any, he may have against any Newfield Party,
which have been satisfied fully by this Agreement and Release and which he now
releases in their entirety, and that he has not sold, assigned, transferred,
conveyed or otherwise disposed of any of the claims, demands, obligations, or
causes of action referred to in this Agreement and Release, and that he has the
sole right and exclusive authority to execute this Agreement and Release and
receive the consideration provided.

     

    9. Release.  Executive
agrees to release, acquit and discharge and does hereby release, acquit and
discharge the Newfield Parties, individually and collectively, from any and all
claims and from any and all causes of action against any of the Newfield
Parties, of any kind or character, whether now known or not known, he may have
against any such Newfield Party including, but not limited to, any claim for
salary, benefits, expenses, costs, damages, compensation, remuneration or wages;
and all claims or causes of action arising from his employment, termination of
employment, or any alleged discriminatory employment practices, including but
not limited to any and all claims or causes of action arising under the Age
Discrimination in Employment Act, as amended, 29 U.S.C. § 621 et seq, Title VII
of the Civil Rights Act of 1964, as amended, the Americans With Disabilities
Act, 42 U.S.C. § 1981, the Employee Retirement Income Security Act, the Family
and Medical Leave Act, the Texas Commission on Human Rights Act, and any other
federal, state or local laws, whether statutory or common, contract or
tort.  This release also applies to any claims brought by any person
or agency or class action under which Executive may have a right or
benefit.

     

    10. No
Admissions.  Executive expressly understands and agrees that
the terms of this Agreement and Release are contractual and not merely recitals
and that this Agreement and Release does not constitute evidence of unlawful
conduct or wrongdoing by Newfield.  By his execution of this Agreement
and Release, Executive acknowledges and agrees that (i) he knows of no act,
event, or omission by any Newfield Party which is unlawful or violates any law,
governmental rule or regulation, or any rule or regulation of any stock
exchange, (ii) he has not committed, during his employment with Newfield or any
Newfield Party, any act which is unlawful or which violates any governmental
rule or regulation or any rule or regulation of any stock exchange, (iii) he has
not requested any Newfield Party to commit any unlawful act or violate any
governmental rule or regulation or any rule or regulation of any stock exchange,
and (iv) neither he nor any other person employed by or contracting with any
Newfield Party has been subjected to any adverse action because any such person
refused to commit any unlawful act or violate any governmental rule or
regulation or any rule or regulation of any stock exchange.

     

    11. Enforcement of Agreement and
Release.  No waiver or non-action with respect to any breach by
the other party of any provision of this Agreement and Release, nor the waiver
or non-action with respect to any breach of the provisions of similar agreements
with other employees shall be construed to be a waiver of any succeeding breach
of such provision, or as a waiver of the provision itself.  Should any
provisions hereof be held to be invalid or wholly or partially unenforceable,
such provisions shall be revised and reduced in scope so as to be valid and
enforceable.

     

    12. Choice of
Law.  This Agreement and Release shall be governed by and
construed and enforced, in all respects, in accordance with the law of the State
of Texas without regard to the principles of conflict of law except as preempted
by federal law.

     

    13. Merger.  This
Agreement and Release supersedes, replaces and merges all previous agreements
and discussions relating to the same or similar subject matters between
Executive and Newfield and constitutes the entire agreement between Executive
and Newfield with respect to the subject matter of this Agreement and
Release.  This Agreement and Release may not be changed or terminated
orally, and no change, termination or waiver of this Agreement and Release or
any of the provisions herein contained shall be binding unless made in writing
and signed by all parties, and in the case of Newfield, by an authorized
officer.

     

    14. No Derogatory
Comments.  Except as required by judicial process or
governmental rule or regulation, Executive shall refrain from making public or
private comments relating to any Newfield Party which are derogatory or which
may tend to injure any such party in such party’s business, public or private
affairs.

     

    15. Confidentiality.
Executive agrees that he will not disclose the terms of this Agreement and
Release or the consideration received from Newfield to any other person, except
his attorney or financial advisors and only on the condition that they keep such
information strictly confidential; provided, however, that the foregoing
obligation of confidence shall not apply to information that is required to be
disclosed by any applicable law, rule or regulation of any governmental
authority.

     

    16. Rights Under the Older
Worker Benefit Protection Act and the Age Discrimination and Employment
Act.  Executive acknowledges and agrees:

     

    16.1 that he
has at least forty-five days to review this Agreement and Release, along with
the demographic information attached hereto as Attachment 1;

     

    16.2 that he
has been advised in writing to consult with an attorney regarding the terms of
this Agreement and Release prior to executing this Agreement and
Release;

     

    16.3 that, if
he executes this Agreement and Release, he has seven days following the
execution of this Agreement and Release to revoke this Agreement and Release, by
submitting, in writing, notice of such revocation to Newfield;

     

    16.4 that this
Agreement and Release shall not become effective or enforceable until the
revocation period has expired;

     

    16.5 that he
does not, by the terms of this Agreement and Release, waive claims or rights
that may arise after the date he executes this Agreement and
Release;

     

    16.6 that he
is receiving, pursuant to this Agreement and Release, consideration in addition
to anything of value to which he is already entitled; and

     

    16.7 that this
Agreement and Release is written in such a manner that he understands his rights
and obligations.

     

    17. Agreement and Release
Voluntary.  Executive acknowledges and agrees that he has
carefully read this Agreement and Release and understands that it is a release
of all claims, known and unknown, past or present including all claims under the
Age Discrimination in Employment Act.  He further agrees that he has
entered into this Agreement and Release for the above stated
consideration.  He warrants that he is fully competent to execute this
Agreement and Release which he understands to be contractual.  He
further acknowledges that he executes this Agreement and Release of his own free
will, after having a reasonable period of time to review, study and deliberate
regarding its meaning and effect, and after being advised to consult an
attorney, and without reliance on any representation of any kind or character
not expressly set forth herein.  Finally, he executes this Agreement
and Release fully knowing its effect and voluntarily for the consideration
stated above.

     

    18. Notices.  Any
notices required or permitted to be given under this Agreement and Release shall
be properly made if delivered in the case of Newfield to:

     

    Newfield Exploration
Company

    363 N. Sam Houston Parkway East,
Suite 2020

    Houston,
Texas  77060

    

    Attention:  Employee
Relations, Personal and Confidential

    

     

    and in
the case of Executive to:

     

    _________________________

    _________________________

    _________________________

    

    

     

    

     

    [SIGNATURE
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    IN
WITNESS WHEREOF, the parties have caused this Agreement and Release to be
executed in multiple counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument, this
____ day of ____________,  , to be
effective the eighth day following execution by ____________________ unless
earlier revoked.

     

     

    ______________________________                            _________________________________

    Date                                                                          EXECUTIVE

    

    

    

    ______________________________                            NEWFIELD
EXPLORATION COMPANY

    Date

    

    By:  __________________________________

    Name:  ________________________________

    Title:  _________________________________

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