Document:

exv10w1

 

EXHIBIT 10.1

CONSULTING AGREEMENT

     This Consulting Agreement (“Agreement”) is entered into between MAXXAM, Inc. (“Company”) and
Diane M. Dudley (“Dudley”). This Agreement is entered into in order to set forth the terms of the
consulting services Dudley will perform for the Company.

     Dudley served as Vice President, Chief Personnel Officer for the Company for a number of years
until the separation of her employment in December 2004. The Company wishes to benefit from the
experience and expertise Dudley developed in her years of employment with the Company. Dudley
wishes to provide services to the Company on an independent consulting basis.

     In consideration of the mutual promises contained in this Agreement, the parties agree as
follows:

     1. For the period of January 17, 2005 through January 1, 2006, Dudley will provide consulting
services relating to her former duties as Vice President, Chief Personnel Officer. Following
January 1, 2006, Dudley and the Company may, if they mutually agree to do so, extend the period
during which Dudley will provide consulting services. If Dudley and the Company mutually agree to
this extension, the terms and conditions set forth in this Agreement will also apply to this
extended consulting period, unless Dudley and the Company agree to other terms.

     2. Dudley will perform any and all projects which the Company assigns her during this consulting
period. Dudley will also attend conferences and meetings when requested to do so by the Company.

     3. The Company will pay Dudley an hourly fee of $95.00 (ninety five dollars) for her consulting
services. The Company will generally provide Dudley with projects that will involve not more than
80 hours of service per month during this Agreement. The Company shall not be responsible for
providing Dudley any benefits that it normally provides its employees, or that she received during
her employment with the Company. The only compensation or benefits that Dudley is entitled to
receive from the Company for her consulting services are set forth in this Agreement.

     4. The Company will only reimburse Dudley for her reasonable out-of-pocket expenses, including, but
not limited to, travel, accommodations, and mileage necessarily incurred by Dudley in performing
her consulting services under this Agreement, provided these expenses have been approved by the
Company before the expenses are incurred.

     5. In providing the consulting services called for by this Agreement, Dudley will serve as an
independent contractor. Nothing contained in this Agreement shall be construed to constitute
Dudley as an officer, employee, or agent of the Company. Dudley will be responsible for her own
actions. Dudley may perform services for other businesses, entities

 

 

and/or individuals in addition
to the Company. The Company shall not be required to withhold any federal or state income taxes,
FICA or FUTA from the fees paid to Dudley for her consulting services. Dudley shall be responsible
for maintaining her own books and records and for the filing of any taxes or other information
returns with any federal or state agencies.

     6. Except as provided for in paragraph 4, Dudley is responsible for all expenses incurred during
the performance of her consulting services under this Agreement. The Company will provide Dudley
with a workspace and the basic materials, tools and equipment needed to perform her assignments.
Dudley is responsible for hiring, supervising, and paying any support staff necessary to provide
the services called for by this Agreement. Dudley acknowledges that she is not acting as a
representative or agent of the Company when she hires, supervises, or pays her staff or assistants.

     7. The Company does not have the right to and will not exercise any control or direction over the
method by which Dudley chooses to perform the consulting services called for by this Agreement.
Dudley will devote such time as is required to perform the consulting services. Dudley may use any
of her employees or consultants that she deems necessary to complete the consulting services.
Dudley shall choose the time and manner for performing the consulting services according to her own
routines and schedules. Dudley shall set her own hours of work. Dudley has no obligation to
submit reports relating to the method in which consulting services are rendered under this
Agreement. No training will be provided by the Company to Dudley. Dudley acknowledges that she is
not in need of any training by the Company to perform the consulting services called for by this
Agreement. Dudley will exercise her best, good faith efforts to achieve the results desired by the
Company in a professional, business like manner.

     8. The Company is retaining the services of Dudley based on her specific experience and expertise.
Therefore, there shall be no assignment of this Agreement by Dudley without the Company’s written
consent.

     9. Either the Company or Dudley may for good cause terminate this Agreement upon 30 days’ written
notice to the other party.

     10. Dudley acknowledges that in the course of her independent consulting relationship with the
Company, she will acquire confidential information of a special and unique nature and value
relating to such matters as the Company’s strategic plans, programs (including, without limitation,
the Company’s computer software programs), procedures, manuals, confidential reports and
communications, lists of customers, sources of supply, employee discipline information, employee
confidential and medical information. Dudley shall not, at any time following the date of this
Agreement, except with the prior written consent of the Company, directly or indirectly, disclose,
divulge, reveal, report, publish, transfer or use, for any purpose whatsoever, any of such
information which will be obtained by or disclosed to her as a result of the consulting services
she provides the Company.

     11. Dudley understands and agrees that the Company will suffer irreparable harm in the event that
she breaches any of her obligations under this Agreement and that monetary damages will be
inadequate to compensate the Company for such breach.

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Accordingly, Dudley agrees that, in the
event of her breach or threatened breach of any of the provisions of this Agreement, the Company,
in addition to and not in limitation of any other rights, remedies or damages available to the
Company at law or in equity, shall be entitled to a temporary restraining order, preliminary
injunction and permanent injunction in order to prevent or to restrain any such breach by Dudley or
by any or all of her partners, co-venturers, employers, employees, servants, agents,
representatives, and any and all persons directly or indirectly acting for, or on behalf of, or
with her.

     13. The provisions of this Agreement are severable. This means that if any provision is invalid,
it will not affect the validity of the other provisions.

     14. This Agreement constitutes the entire agreement between Dudley and the Company. It may not be
changed orally, but only by a written agreement signed by Dudley and the Company.

     15. The laws of the State of Texas will apply to this Agreement.

     16. Any disputes arising under or in connection with this Agreement shall be resolved by binding
arbitration in accordance with the rules and procedures of the American Arbitration Association.
Judgment upon the award rendered by the arbitrator(s) may be entered in any court having
jurisdiction of the matter. Costs of the arbitration shall be borne equally by the parties. Unless
the arbitrator otherwise determines, the party that does not prevail in any such action shall
reimburse the other party for her or its reasonable attorneys’ fees incurred with respect to such
arbitration.

	 	 	 
	MAXXAM, INC.
	 	DIANE M. DUDLEY
	 
	 	 
	By: /s/ Paul N. Schwartz
	 	/s/ Diane M. Dudley
	Name: Paul N. Schwartz
	 	Diane M. Dudley
	Title: President
	 	 
	 
	 	 
	Date: December 30, 2004
	 	Date: December 30, 2004

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                                                                    Exhibit 10.1

                   FORM OF NONSTATUTORY STOCK OPTION AGREEMENT
                       ENDEAVOUR INTERNATIONAL CORPORATION
                               2004 INCENTIVE PLAN

      1.    Grant of Option. Pursuant to the endeavour International Corporation
2004 Incentive Plan (the "Plan") for employees, consultants and outside
directors of Endeavour International Corporation f/k/a Continental Southern
Resources, Inc., a Nevada Corporation (the "Company"), the Company grants to

                              ____________________
                              (the "Participant"),

an option to purchase shares of Common Stock ("Common Stock") of the Company as
follows:

      On the date hereof, the Company grants to the Participant an option
      (the "Option" or "Stock Option") to purchase _________
      (nonstatutory) full shares (the "Optioned Shares") of Common Stock
      at an Option Price equal to $_________ per share. The Date of Grant
      of this Stock Option is ________ __, 20__.

The "Option Period" shall commence on the Date of Grant and shall expire on the
date immediately preceding the _______ (____) anniversary of the Date of Grant.
The Stock Option is a Nonstatutory Stock Option.

      2.    Subject To Plan. The Stock Option and its exercise are subject to
the terms and conditions of the Plan, and the terms of the Plan shall control to
the extent not otherwise inconsistent with the provisions of this Agreement. The
capitalized terms used herein that are defined in the plan shall have the same
meanings assigned to them in the Plan. The Stock Option is subject to any rules
promulgated pursuant to the Plan by the Committee. In addition, if the Plan
previously has not been approved by the Company's stockholders, the Stock Option
is granted subject to such stockholder approval.

      3.    Vesting: Time Of Exercise. Except as specifically provided in this
Agreement and subject to certain restrictions and conditions set forth in the
Plan, the Stock Option shall be vested and exercisable as follows:

            a.    With respect to 33.3% of the total Optioned Shares, the Stock
      Option shall vest and become exercisable on ________ __, 20__ provided the
      Participant is employed by (or, if the Participant is a consultant or an
      Outside Director, is providing services to) the Company or a Subsidiary on
      that date.

            b.    With respect to 33.3% of the total Optioned Shares, the Stock
      Option shall vest and become exercisable on ________ __, 20__ provided the
      Participant is employed by (or, if the Participant is a consultant or an
      Outside Director, is providing services to) the Company or a Subsidiary on
      that date.

            c.    With respect to 33.3% of the total Optioned Shares, the Stock
      Option shall vest and become exercisable on ________ __, 20__ provided the
      Participant is

<PAGE>

      employed by (or, if the Participant is a consultant or an Outside
      Director, is providing services to) the Company or a Subsidiary on that
      date.

            d.    A Participant shall become 100% vested in the total Optioned
      Shares hereunder on the day preceding an event which constitutes a Change
      in Control as defined in the Plan.

      4.    Term; Forfeiture. In the event of Participant's termination of
employment with the Company and its affiliates (a "Termination of Employment")
for any reason (including for Cause) other than Participant's death, Disability
or Retirement, the Option outstanding on such date of Termination of Employment,
to the extent vested on such date, may be exercised by Participant (or, in the
event of Participant's subsequent death, by Participant's Heir (as defined
below)) within three months following such Termination of Employment, but not
thereafter. In the event that, as a result of such Termination of Employment,
Participant is eligible to receive severance benefits under any Company plan,
program or severance agreement, the Option outstanding on such date of
Termination of Employment, to the extent vested on such date, may be exercised
by Participant (or, in the event of Participant's subsequent death, by
Participant's Heir (as defined below)) within twelve months following such
Termination of Employment, but not thereafter. However, in no event shall the
Option be exercisable after the fifth (5th) anniversary of the Grant Date. To
the extent the Option is not vested on Participant's date of Termination of
Employment, the Option shall automatically lapse and be canceled unexercised as
of such date.

      In the event of Participant's Termination of Employment by reason of
death, Disability or Retirement, as defined by the Committee in its sole
discretion pursuant to the terms of the Plan, the Option shall be fully vested
on such date of termination and may be exercised by Participant or, in the event
of Participant's death, by the person to whom Participant's rights shall pass by
will or the laws of descent and distribution ("Heir"), at any time within the
two-year period beginning on Participant's Termination of Employment, but not
thereafter. However, in no event shall the Option be exercisable after the _____
(___) anniversary of the Grant Date.

      5.    Who May Exercise. Subject to the terms and conditions set forth in
Sections 3 and 4 above, during the lifetime of the Participant, the Stock Option
may be exercised only by the Participant, or by the Participant's guardian or
personal or legal representative (in the event of his or her Disability or by a
broker dealer subject to Section 2.3 of the Plan).

      6.    No Fractional Shares. The Stock Option may be exercised only with
respect to full shares, and no fractional share of stock shall be issued.

      7.    Manner of Exercise. Subject to such administrative regulations as
the Committee may from time to time adopt, the Option may be exercised by the
delivery of written notice to the Committee or designated Company representative
setting forth the number of shares of Common Stock with respect to which the
Option is to be exercised, the date of exercise thereof (the "Exercise Date")
which shall be at least three (3) days after giving such notice unless an
earlier time shall have been mutually agreed upon. On the Exercise Date, the
Participant shall deliver to the Company consideration with a value equal to the
total Option Price of the shares to be purchased, payable to the Company in full
in either: (i) in cash or its equivalent, or (ii) subject

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<PAGE>

to prior approval by the Committee in its discretion, by tendering previously
acquired Shares having an aggregate Fair Market Value at the time of exercise
equal to the total Option Price (provided that the Shares which are tendered
must have been held by the Participant for at least six (6) months prior to
their tender to satisfy the Option Price), or (iii) subject to prior approval by
the Committee in its discretion, by withholding Shares which otherwise would be
acquired on exercise having an aggregate Fair Market Value at the time of
exercise equal to the total Option Price, or (iv) subject to prior approval by
the Committee in its discretion, by a combination of (i), (ii), and (iii) above.
Any payment in Shares shall be effected by the surrender of such Shares to the
Company in good form for transfer and shall be valued at their Fair Market Value
on the date when the Stock Option is exercised. Unless otherwise permitted by
the Committee in its discretion, the Participant shall not surrender, or attest
to the ownership of, Shares in payment of the Option Price if such action would
cause the Company to recognize compensation expense (or additional compensation
expense) with respect to the Option for financial reporting purposes.

      The Committee, in its discretion, also may allow the Option Price to be
paid with such other consideration as shall constitute lawful consideration for
the issuance of Shares (including, without limitation, effecting a "cashless
exercise" with a broker of the Option), subject to applicable securities law
restrictions and tax withholdings, or by any other means which the Committee
determines to be consistent with the Plan's purpose and applicable law. A
"cashless exercise" of an Option is a procedure by which a broker provides the
funds to the Participant to effect an Option exercise, to the extent consented
to by the Committee in its discretion. At the direction of the Participant, the
broker will either (i) sell all of the Shares received when the Option is
exercised and pay the Participant the proceeds of the sale (minus the Option
Price, withholding taxes and any fees due to the broker) or (ii) sell enough of
the Shares received upon exercise of the Option to cover the Option Price,
withholding taxes and any fees due the broker and deliver to the Participant
(either directly or through the Company) a stock certificate for the remaining
Shares. Dispositions to a broker effecting a cashless exercise are not exempt
under Section 16 of the Exchange Act (if the Company is a Publicly Held
Corporation). In no event will the Committee allow the Option Price to be paid
with a form of consideration, including a loan or a "cashless exercise," if such
form of consideration would violate the Sarbanes-Oxley Act of 2002 as determined
by the Committee in its discretion.

      As soon as practicable after receipt of a written notification of exercise
and full payment, the Company shall deliver, or cause to be delivered, to or on
behalf of the Participant, in the name of the Participant or other appropriate
recipient, Share certificates for the number of Shares purchased under the
Option. Such delivery shall be effected for all purposes when the Company or a
stock transfer agent of the Company shall have deposited such certificates in
the United States mail, addressed to Participant or other appropriate recipient.

      If the Participant fails to pay for any of the Shares specified in such
notice or fails to accept delivery thereof, then the Option, and right to
purchase such Shares may be forfeited by the Company.

      8.    Nonassignability. The Stock Option is not assignable or transferable
by the Participant except by will or by the laws of descent and distribution or
pursuant to a domestic relations order that would qualify as a qualified
domestic relations order as defined in Section 414(p) of the Code, if such
provision were applicable to the Stock Option.

                                       3
<PAGE>

      9.    Rights as Stockholder. The Participant will have no rights as a
stockholder with respect to any shares covered by the Stock Option until the
issuance of a certificate or certificates to the Participant for the Optioned
Shares. The Optioned Shares shall be subject to the terms and conditions of this
Agreement and Plan regarding such Shares. Except as otherwise provided in
Section 10 hereof, no adjustment shall be made for dividends or other rights for
which the record date is prior to the issuance of such certificate or
certificates.

      10.   Adjustment of Number of Optioned Shares and Related Matters. The
number of shares of Common Stock covered by the Stock Option, and the Option
Prices thereof, shall be subject to adjustment in accordance with Section 5.5 of
the Plan.

      11.   Nonstatutory Stock Option. The Stock Option shall not be treated as
an Incentive Stock Option.

      12.   Community Property. Each spouse individually is bound by, and such
spouse's interest, if any, in any Shares is subject to, the terms of this
Agreement. Nothing in this Agreement shall create a community property interest
where none otherwise exists.

      13.   Dispute Resolution.

            a.    Arbitration. All disputes and controversies of every kind and
      nature between any parties hereto arising out of or in connection with
      this Agreement or the transactions described herein as to the
      construction, validity, interpretation or meaning, performance,
      non-performance, enforcement, operation or breach, shall be submitted to
      arbitration pursuant to the following procedures:

                  i.    After a dispute or controversy arises, any party may, in
            a written notice delivered to the other parties to the dispute,
            demand such arbitration. Such notice shall designate the name of the
            arbitrator (who shall be an impartial person) appointed by such
            party demanding arbitration, together with a statement of the matter
            in controversy.

                  ii.   Within 30 days after receipt of such demand, the other
            parties shall, in a written notice delivered to the first party,
            name such parties' arbitrator (who shall be an impartial person). If
            such parties fail to name an arbitrator, then the second arbitrator
            shall be named by the American Arbitration Association (the "AAA").
            The two arbitrators so selected shall name a third arbitrator (who
            shall be an impartial person) within 30 days, or in lieu of such
            agreement on a third arbitrator by the two arbitrators so appointed,
            the third arbitrator shall be appointed by the AAA. If any
            arbitrator appointed hereunder shall die, resign, refuse or become
            unable to act before an arbitration decision is rendered, then the
            vacancy shall be filled by the method set forth in this Section for
            the original appointment of such arbitrator.

                  iii.  Each party shall bear its own arbitration costs and
            expenses. The arbitration hearing shall be held in Houston, Texas at
            a location designated by a majority of the arbitrators. The
            Commercial Arbitration Rules of the American Arbitration Association
            shall be incorporated by reference at such hearing and the

                                       4
<PAGE>

            substantive laws of the State of Texas (excluding conflict of laws
            provisions) shall apply.

                  iv.   The arbitration hearing shall be concluded within ten
            (10) days unless otherwise ordered by the arbitrators and the
            written award thereon shall be made within fifteen (15) days after
            the close of submission of evidence. An award rendered by a majority
            of the arbitrators appointed pursuant to this Agreement shall be
            final and binding on all parties to the proceeding, shall resolve
            the question of costs of the arbitrators and all related matters,
            and judgment on such award may be entered and enforced by either
            party in any court of competent jurisdiction.

                  v.    Except as set forth in Section 13.b., the parties
            stipulate that the provisions of this Section shall be a complete
            defense to any suit, action or proceeding instituted in any federal,
            state or local court or before any administrative tribunal with
            respect to any controversy or dispute arising out of this Agreement
            or the transactions described herein. The arbitration provisions
            hereof shall, with respect to such controversy or dispute, survive
            the termination or expiration of this Agreement.

      No party to an arbitration may disclose the existence or results of any
      arbitration hereunder without the prior written consent of the other
      parties; nor will any party to an arbitration disclose to any third party
      any confidential information disclosed by any other party to an
      arbitration in the course of an arbitration hereunder without the prior
      written consent of such other party.

            b.    Emergency Relief. Notwithstanding anything in this Section 13
      to the contrary, any party may seek from a court any provisional remedy
      that may be necessary to protect any rights or property of such party
      pending the establishment of the arbitral tribunal or its determination of
      the merits of the controversy or to enforce a party's rights under Section
      13.

      14.   Participant's Representations. Notwithstanding any of the provisions
hereof, the Participant hereby agrees that he will not exercise the Stock Option
granted hereby, and that the Company will not be obligated to issue any shares
to the Participant hereunder, if the exercise thereof or the issuance of such
shares shall constitute a violation by the Participant or the Company of any
provision of any law or regulation of any governmental authority or Company
policies, or the rules of the stock exchange on which the Common Stock is
listed. Any determination in this connection by the Company shall be final,
binding, and conclusive. The obligations of the Company and the rights of the
Participant are subject to all applicable laws, rules, and regulations, rules of
the stock exchange on which the Common Stock is listed and policies of the
Company.

      15.   Investment Representation. The Participant represents and warrants
to the Company that all Common Stock which may be purchased hereunder will be
acquired by the Participant for investment purposes for his own account and not
with any intent for resale or distribution in violation of federal or state
securities laws.

                                       5
<PAGE>

      16.   Participant's Acknowledgments. The Participant acknowledges receipt
of a copy of the Plan, which is annexed hereto, and represents that he or she is
familiar with the terms and provisions thereof, and hereby accepts this Option
subject to all the terms and provisions thereof. The Participant hereby agrees
to accept as binding, conclusive, and final all decisions or interpretations of
the Committee, the Company or the Board, as appropriate, upon any questions
arising under the Plan or this Agreement.

      17.   Law Governing. This Agreement shall be governed by, construed, and
enforced in accordance with the laws of the State of Texas (excluding any
conflict of laws rule or principle of Nevada law that might refer the
governance, construction, or interpretation of this agreement to the laws of
another state).

      18.   No Right to Continue Service or Employment. Nothing herein shall be
construed to confer upon the Participant the right to continue in the employ or
to provide services to the Company, its Affiliates or any Parent or Subsidiary
or their Affiliates, whether as an employee or as a consultant or as an Outside
Director, or interfere with or restrict in any way the right of the Company or
any of the other foregoing entities to discharge the Participant as an employee,
consultant or Outside Director at any time.

      19.   Legal Construction. In the event that any one or more of the terms,
provisions, or agreements that are contained in this Agreement shall be held by
a Court of competent jurisdiction to be invalid, illegal, or unenforceable in
any respect for any reason, the invalid, illegal, or unenforceable term,
provision, or agreement shall not affect any other term, provision, or agreement
that is contained in this Agreement and this Agreement shall be construed in all
respects as if the invalid, illegal, or unenforceable term, provision, or
agreement had never been contained herein.

      20.   Covenants and Agreements as Independent Agreements. Each of the
covenants and agreements that is set forth in this Agreement shall be construed
as a covenant and agreement independent of any other provision of this
Agreement. The existence of any claim or cause of action of the Participant
against the Company, whether predicated on this Agreement or otherwise, shall
not constitute a defense to the enforcement by the Company of the covenants and
agreements that are set forth in this Agreement.

      21.   Entire Agreement. This Agreement together with the Plan supersede
any and all other prior understandings and agreements, either oral or in
writing, between the parties with respect to the subject matter hereof and
constitute the sole and only agreements between the parties with respect to the
said subject matter. All prior negotiations and agreements between the parties
with respect to the subject matter hereof are merged into this Agreement. Each
party to this Agreement acknowledges that no representations, inducements,
promises, or agreements, orally or otherwise, have been made by any party or by
anyone acting on behalf of any party, which are not embodied in this Agreement
or the Plan and that any agreement, statement or promise that is not contained
in this Agreement or the Plan shall not be valid or binding or of any force or
effect.

      22.   Parties Bound. The terms, provisions, and agreements that are
contained in this Agreement shall apply to, be binding upon, and inure to the
benefit of the parties and their

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<PAGE>

respective heirs, executors, administrators, legal representatives, and
permitted successors and assigns, subject to the limitation on assignment
expressly set forth herein. [No person or entity shall be permitted to acquire
any Optioned Shares without first executing and delivering an agreement in the
form satisfactory to the Company making such person or entity subject to the
restrictions on transfer contained herein.]

      23.   Modification. No change or modification of this Agreement shall be
valid or binding upon the parties unless the change or modification is in
writing and signed by the parties. Notwithstanding the preceding sentence, the
Company may amend the Plan or revoke this Stock Option to the extent permitted
by the Plan.

      24.   Headings. The headings that are used in this Agreement are used for
reference and convenience purposes only and do not constitute substantive
matters to be considered in construing the terms and provisions of this
Agreement.

      25.   Gender and Number. Words of any gender used in this Agreement shall
be held and construed to include any other gender, and words in the singular
number shall be held to include the plural, and vice versa, unless the context
requires otherwise.

      26.   Independent Legal and Tax Advice. Optionee acknowledges that the
Company has advised Optionee to obtain independent legal and tax advice
regarding the grant and exercise of the Option and the disposition of any Shares
acquired thereby.

      27.   Notice. Any notice required or permitted to be delivered hereunder
shall be deemed to be delivered only when actually received by the Company or by
the Participant, as the case may be, at the addresses set forth below, or at
such other addresses as they have theretofore specified by written notice
delivered in accordance herewith:

            a.    Notice to the Company shall be addressed and delivered as
      follows:

                  Endeavour International Corporation
                  1000 Main, Suite 3300
                  Houston, Texas  77002
                  Attn: Secretary
                  Facsimile:  (713) 307-8794

            b.    Notice to the Participant shall be addressed and delivered as
      set forth on the signature page.

      28.   Tax Requirements.

            a.    Tax Withholding. The Company shall have the power and the
      right to deduct or withhold, or require the Participant to remit to the
      Company, an amount sufficient to satisfy federal, state, and local taxes,
      domestic or foreign, required by law or regulation to be withheld with
      respect to any taxable event arising as a result of the Plan and this
      Option.

                                       7
<PAGE>

            b.    Share Withholding. With respect to tax withholding required
      upon the exercise of Stock Options or upon any other taxable event arising
      as a result of the Stock Option, Participant may elect, subject to the
      approval of the Committee in its discretion, to satisfy the withholding
      requirement, in whole or in part, by having the Company withhold Shares
      having a Fair Market Value on the date the tax is to be determined equal
      to the statutory total tax which could be imposed on the transaction. All
      such elections shall be made in writing, signed by the Participant, and
      shall be subject to any restrictions or limitations that the Committee, in
      its discretion, deems appropriate. Any fraction of a Share required to
      satisfy such obligation shall be disregarded and the amount due shall
      instead be paid in cash by the Participant.

                            [SIGNATURE PAGE FOLLOWS]

                                       8
<PAGE>

      IN WITNESS WHEREOF, the Company has caused this Agreement to be executed
by its duly authorized officer, and the Participant, to evidence his consent and
approval of all the terms hereof, has duly executed this Agreement, as of the
date specified in Section 1 hereof.

                                           COMPANY:

                                           ENDEAVOUR INTERNATIONAL
                                           CORPORATION

                                           By: _________________________________
                                           Name:
                                           Title:

                                           PARTICIPANT:

                                           _____________________________________
                                           Name:

                                           Address:_____________________________

                                           _____________________________________

                                       9

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