Document:

Second Amendment to Credit Agreement

 EXHIBIT 10.2 
  
 SECOND AMENDMENT 
  
 TO 
  
 CREDIT AGREEMENT 
  
 Dated as of May 14, 2004 
  
 AMONG 
  
 PLAINS EXPLORATION & PRODUCTION
COMPANY, 
  
 AS BORROWER,

  
 THE GUARANTORS, 
  
 JPMORGAN CHASE BANK, 
  
 AS ADMINISTRATIVE AGENT,

  
 AND 
  
 THE LENDERS PARTY HERETO 
  

 SECOND AMENDMENT TO CREDIT AGREEMENT 
  
 THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this “Second Amendment”) dated as of May 14, 2004,
is among PLAINS EXPLORATION & PRODUCTION COMPANY, a Delaware corporation (the “Borrower”); each of the undersigned guarantors (the “Guarantors”, and together with the Borrower, the “Obligors”);
JPMORGAN CHASE BANK, as administrative agent (in such capacity, together with its successors in such capacity, the “Administrative Agent”) for the lenders party to the Credit Agreement referred to below (collectively, the
“Lenders”); and each of the undersigned Lenders. 
  
 R E C I T A L S 
  
 A. The Borrower, the
Agents and the Lenders are parties to that certain Credit Agreement dated as of April 4, 2003 (as amended by the First Amendment to Credit Agreement dated as of August 8, 2003, the “Credit Agreement”), pursuant to which the Lenders
have made certain credit available to and on behalf of the Borrower. 
  
 B. The Borrower has requested and the Lenders have agreed to amend certain provisions of the Credit Agreement. 
  
 C. NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 Section 1. Defined Terms. Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement, as amended by this Second Amendment. Unless otherwise
indicated, all section references in this Second Amendment refer to sections of the Credit Agreement. 
  
 Section 2. Amendments to Credit Agreement. 
  
 2.1 Amendments to Section 1.02. 
  
 (a) The definition of “Agreement” is hereby amended in its entirety to read as follows: 
  
 “Agreement” means this Credit Agreement, as
amended by the First Amendment and the Second Amendment, as the same may from time to time be amended, modified, supplemented or restated. 
  

 (b) The grid contained in the definition of “Applicable Margin” is
hereby amended in its entirety to read as follows: 
  

									
	Borrowing Base Utilization Percentage	  	<50%	  	>50%, but <75%	  	>75%, but <90%	  	>90%
					
	 ABR Loans
	  	0.000%	  	0.250%	  	0.500%	  	0.625%
					
	 Eurodollar Loans
	  	1.250%	  	1.500%	  	1.750%	  	1.875%
					
	 Commitment Fee Rate
	  	0.300%	  	0.375%	  	0.375%	  	0.500%

  
 (c)
The definition of “Maturity Date” is hereby amended in its entirety to read as follows: 
  
 “Maturity Date” means April 4, 2007. 
  
 (d) The definition of “Permitted Additional Senior Subordinated Notes” is hereby amended in
its entirety to read as follows: 
  
 “Permitted Additional Senior Subordinated Notes” means senior subordinated notes issued by the Borrower pursuant to the Permitted Additional Senior Subordinated Indenture, in compliance with Section 9.02(i), in an aggregate
principal amount not to exceed $300,000,000, having a stated coupon acceptable to the Administrative Agent, a final maturity no earlier than seven years from the Effective Date and other terms reasonably acceptable to the Administrative Agent.

  
 (e) The following definitions are hereby
added where alphabetically appropriate to read as follows: 
  
 “Borrowing Base Deficiency” occurs if at any time the total Revolving Credit Exposures exceeds the Borrowing Base then in effect. 
  
 “Nuevo” means Nuevo Energy Company, a Delaware corporation. 
  
 “Nuevo Acquisition” means the merger of an
Unrestricted Subsidiary with and into Nuevo pursuant to the terms and conditions of the Nuevo Acquisition Documents and this Agreement. 
  
 “Nuevo Acquisition Documents” means: (a) the Nuevo Agreement and Plan of Merger and (b) all other material agreements,
instruments and documents executed and delivered in connection therewith, each as amended. 
  
 “Nuevo Agreement and Plan of Merger” means the Agreement and Plan of Merger dated February 12, 2004, as amended April 19,
2004, among the Borrower, PXP California Inc. and Nuevo. 
  

 2 

 “Nuevo Conversion Date” has the meaning set forth in Section 2.07(e)(i).

  
 “Nuevo Debentures” means the
5.75% Convertible Subordinated Debentures due 2026, issued by Nuevo, as issuer, to Nuevo Trust, pursuant to the Nuevo Subordinated Indenture, in the aggregate principal amount of $118,556,700. 
  
 “Nuevo Escrow Agreement” means that certain
Stock Escrow Agreement dated as of May 14, 2004 between the Borrower and Nuevo, as escrow agent thereunder. 
  
 “Nuevo Management Services Agreement” means that certain Management Services Agreement dated as of May 14, 2004 between
the Borrower and Nuevo. 
  
 “Nuevo
Subordinated Indenture” means the Subordinated Indenture dated as of November 25, 1996, between Nuevo, as issuer, and Wilmington Trust Company, as trustee, as supplemented by the First Supplemental Indenture dated as of December 23, 1996
and the Second Supplemental Indenture dated as of May 14, 2004 between Nuevo and Wilmington Trust Company, pursuant to which the Nuevo Debentures were issued. 
  

“Nuevo Trust” means Nuevo Financing I, a Delaware business trust. 
  
 “Nuevo Credit Agreement” means,
collectively, (a) the Third Restated Credit Agreement dated as of June 7, 2000 among Nuevo, Bank of America, N.A., as administrative agent, and the lenders party thereto and (b) the Fourth Restated Credit Agreement dated as of May 14, 2004 among
Nuevo, Bank of America, N.A., as administrative agent, and the lenders party thereto. 
  
 “Nuevo Trust Declaration of Trust” means the Amended and Restated Declaration of Trust of Nuevo Trust dated as of
December 23, 1996, among Nuevo, Wilmington Trust Company, as Delaware Trustee and Institutional Trustee, and the other trustees named therein. 
  
 “Nuevo Trust Designation of Securities” means the Terms of $2.875 Trust Preferred Securities and $2.875 Common Securities
designated pursuant to Section 7.01 of the Nuevo Trust Declaration of Trust. 
  
 “Second Amendment” means the Second Amendment to Credit Agreement dated as of May 14, 2004 among the Borrower, the Guarantors and the Lenders party thereto. 
  
 “TECONs” means the Trust Preferred
Securities issued by Nuevo Trust, having an aggregate liquidation amount with respect to the assets of Nuevo Trust of $115,000,000, as more particularly described in the Nuevo Trust Designation of Securities. 
  

 3 

 “2010 Nuevo Senior Subordinated Notes” means the $150,000,000 9 3/8%
senior subordinated notes due 2010 issued by Nuevo. 
  
 2.2
Amendment to Section 2.07(e). Section 2.07(e) is hereby amended in its entirety to read as follows: 
  
 “(e) Borrowing Base Increase related to Designation of Restricted Subsidiaries; Reduction of Borrowing Base Upon Sale of certain
Properties 
  
 (i) Effective on the
“Nuevo Conversion Date” specified in this Section 2.07(e)(i), the amount of the Borrowing Base shall automatically, without any further action or consent by any Person, be increased to $700,000,000, which shall be the amount of the
Borrowing Base effective and applicable to the Borrower, the Agents, and the Lenders until the next Scheduled Redetermination Date (November 1, 2004), the next Interim Redetermination Date or the next adjustment to the Borrowing Base under Section
2.07(e)(ii), Section 8.13(c) or Section 9.13, whichever occurs first. The designation of the amount of the Borrowing Base as $700,000,000 as aforesaid shall not become effective until the date on which each of the following conditions is satisfied
(or waived by all of the Lenders in accordance with Section 12.02) (the “Nuevo Conversion Date”): (A) the Borrower shall have properly designated Nuevo and its Subsidiaries (other than Nuevo Trust) as Restricted Subsidiaries
pursuant to and in accordance with Section 9.06(b) and (B) the Administrative Agent shall have received (1) certificates of the appropriate State agencies with respect to the existence, qualification and good standing of Nuevo and its Subsidiaries
(other than Nuevo Trust), (2) appropriate UCC search certificates reflecting no prior Liens encumbering the Properties of Nuevo and its Subsidiaries (other than Nuevo Trust) for any jurisdiction requested by the Administrative Agent, other than
those being assigned or released on or prior to the Nuevo Conversion Date or Liens permitted by Section 9.03, (3) evidence satisfactory to it that all credit facilities and funded Debt of Nuevo and its Subsidiaries (other than any portion of the
outstanding 2010 Nuevo Senior Subordinated Notes that are not redeemed by the holders thereof in connection with a tender offer by Nuevo, provided that such Debt would otherwise be permitted under Section 9.02(j)) have been or simultaneously with
the Nuevo Conversion Date are being repaid in full and all commitments thereunder have been or simultaneously with the Nuevo Conversion Date are being terminated, and the Administrative Agent shall have received a certificate dated as of the Nuevo
Conversion Date, signed by a Responsible Officer, to that effect; and evidence satisfactory to it that all Liens associated with all credit facilities and funded Debt of Nuevo and its Subsidiaries have been or simultaneously with the Nuevo
Conversion Date are being released or terminated (pursuant to documentation in form and substance reasonably satisfactory to the Administrative Agent) and that arrangements satisfactory to the Administrative Agent have been made for recording and
filing of such releases, (4) from each party thereto duly executed counterparts of deeds of trust, mortgages, guarantees, security agreements and financing statements or other Security Instruments, all in form and substance reasonably satisfactory
to the Administrative Agent and in a 

  

 4 

 
sufficient number of executed (and acknowledged where necessary or appropriate) counterparts for recording purposes, as may be requested by the
Administrative Agent so that the Borrower is in compliance with Section 8.14, (5) title information as the Administrative Agent may reasonably require satisfactory to the Administrative Agent setting forth the status of title with respect to the Oil
and Gas Properties of Nuevo and its Subsidiaries, (6) since the effective date of the Second Amendment, Nuevo and its Subsidiaries shall not have sold, assigned, farmed-out or otherwise transferred more than 15% of the allocated value of
Nuevo’s and its Subsidiaries’ Properties in respect of the Borrowing Base and (6) such other additional closing documents, certificates and legal opinions as shall reasonably be requested by the Administrative Agent. In connection with the
execution and delivery of Security Instruments pursuant to clause (4) of this Section 2.07(e)(i), the Administrative Agent shall: (a) be reasonably satisfied that the Security Instruments create first priority, perfected Liens (subject only to
Excepted Liens identified in clauses (a) to (d) and (f) of the definition thereof, but subject to the provisos at the end of such definition and the Liens described on Schedule 9.03) on at least 80% of the total value of the Oil and Gas Properties
evaluated in the most recently delivered Reserve Report and the reserve report with respect to the Oil and Gas Properties of Nuevo and its Subsidiaries and (b) have received certificates, together with undated, blank stock powers for each such
certificate, representing all of the issued and outstanding Equity Interests of Nuevo and its Subsidiaries. The Administrative Agent shall notify the Borrower and the Lenders of the Nuevo Conversion Date. 
  
 (ii) Upon the receipt of the proceeds from the sale of all
of Nuevo’s interests in the Marine 1 Permit, offshore the Republic of Congo, the amount of the Borrowing Base then in effect shall be reduced effective immediately upon receipt of such proceeds by an amount equal to $50,000,000, and the
Borrowing Base as so reduced shall become the new Borrowing Base effective and applicable to the Borrower, the Agents, each Issuing Bank and the Lenders on such date until the next redetermination or modification thereof hereunder.” 

 
 2.3 Amendment to Section 3.04(c)(ii). The second sentence of
Section 3.04(c)(ii) is hereby amended in its entirety to read as follows: 
  
 “The Borrower shall be obligated to make such prepayment and/or deposit of cash collateral within sixty (60) days following its receipt of the New Borrowing Base Notice in accordance with Section 2.07(d) or the
date the adjustment occurs; provided that all payments required to be made pursuant to this Section 3.04(c)(ii) must be made on or prior to the Termination Date.” 
  
 2.4 Amendment to Section 7.15. Section 7.15 is hereby amended by inserting the words “, except as set forth in
Schedule 7.15” after the words “no Foreign Subsidiaries” in the last sentence thereof. 
  
 2.5 Amendment to Section 7.19. Section 7.19 is hereby amended by replacing the words “one-half bcf” with the words “two bcf” in
the last line thereof. 
  

 5 

 2.6 Amendment to Section 7.22. The first sentence of Section 7.22 is hereby amended in its
entirety to read as follows: 
  
 “The
proceeds of the Loans and the Letters of Credit shall be used to provide working capital for exploration and production operations, to provide funds to refinance Debt under the Existing Credit Agreement, Debt of the Target and Debt of Nuevo, to
provide funding in connection with the Acquisition and for general corporate purposes.” 
  
 2.7 Amendment to Section 8.01(l). Section 8.01(l) is hereby amended in its entirety to read as follows: 
  
 “(l) Notice of Sales of Oil and Gas Properties. In the event the Borrower or any Restricted Subsidiary intends to sell,
transfer, assign or otherwise dispose of any Oil or Gas Properties individually having a fair market value in excess of $15,000,000 or any Equity Interests in any Subsidiary in accordance with Section 9.13, prior written notice of such disposition,
the price thereof and the anticipated date of closing.” 
  
 2.8 Amendment to Section 8.02(b). Section 8.02(b) is hereby amended in its entirety to read as follows: 
  
 “(b) the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or
affecting the Borrower or any Affiliate thereof that, if adversely determined could reasonably be expected to result in liability in excess of $10,000,000 per claim not fully covered by insurance, subject to normal deductibles;” 
  
 2.9 Amendment to Section 8.06. The first sentence of Section 8.06 is
hereby amended in its entirety to read as follows: 
  
 “Except, in each case, where the failure to comply could not reasonably be expected to have a Material Adverse Effect, the Borrower, at its own expense, will, and will cause each Restricted Subsidiary to:” 
  
 2.10 Amendment to Section 8.10(c). Section 8.10(c) is hereby amended
in its entirety to read as follows: 
  
 “(c)
The Borrower will, and will cause each Subsidiary to, provide environmental audits and tests in accordance with American Society of Testing Materials standards upon request by the Administrative Agent and the Lenders and no more than once per year
in the absence of any Event of Default (or as otherwise required to be obtained by the Administrative Agent or the Lenders by any Governmental Authority), in connection with any future acquisitions of Oil and Gas Properties or other Properties
individually having a fair market value in excess of $15,000,000.” 
  

 6 

 2.11 Amendment to Section 8.16(c). Section 8.16(c) is hereby amended in its entirety to read as
follows: 
  
 “(c) will not permit any
Unrestricted Subsidiary to hold any Equity Interest in, or any Debt of, the Borrower or any Restricted Subsidiary; provided, however, that Nuevo Trust may hold the Nuevo Debentures and Nuevo may hold common stock of the Borrower for delivery upon
conversion of the Nuevo Debentures or the TECONs pursuant to and in accordance with the terms of the Nuevo Escrow Agreement (as in effect on the effective date of the Second Amendment).” 
  
 2.12 Amendment to Section 9.01(a). Section 9.01(a) is hereby amended
in its entirety to read as follows: 
  
 “(a)
Minimum Tangible Net Worth. The Borrower will not permit its Tangible Net Worth at any time to be less than the sum of (a) at any time prior to the Nuevo Conversion Date: (i) 80% of its Tangible Net Worth as of the Effective Date plus
(ii) 50% of the Borrower’s Consolidated Net Income (but not loss) for each fiscal quarter occurring after the Effective Date taken as a single accounting period plus (iii) 100% of the Net Cash Proceeds from the sale of any Equity
Interests of the Borrower after the Effective Date; and (b) at any time on or after the Nuevo Conversion Date: (i) 80% of its Tangible Net Worth as of the Nuevo Conversion Date plus (ii) 50% of the Borrower’s Consolidated Net Income (but
not loss) for each fiscal quarter occurring after the Nuevo Conversion Date taken as a single accounting period plus (iii) 100% of the Net Cash Proceeds from the sale of any Equity Interests of the Borrower after the Nuevo Conversion
Date.” 
  
 2.13 Amendment to Section 9.02(i). Section
9.02(i) is hereby amended in its entirety to read as follows: 
  
 “(i) Debt under the Permitted Additional Senior Subordinated Notes and any guarantees thereof by the Guarantors (including any Persons becoming Guarantors simultaneously with the incurrence of such Debt), the
principal amount of which does not exceed $300,000,000 in the aggregate; provided that: (i) the proceeds (net of transaction fees and expenses) of the issuance of such Permitted Additional Senior Subordinated Notes shall be used solely to repay in
full the outstanding loans and other amounts payable under the Nuevo Credit Agreement and if any excess proceeds remain after giving effect to such repayment, subject to the other terms of this Agreement, such excess proceeds may be used to repay
outstanding Debt of the Borrower, (ii) the conditions of Section 2.07(e)(i)(A) and (B) have been or shall be concurrently satisfied (or waived in accordance with Section 12.02 of the Credit Agreement) and (iii) at the time of incurring such Debt (A)
no Default has occurred and is then continuing and (B) no Default would result from the incurrence of such Debt after giving effect to the incurrence of such Debt (and any concurrent repayment of Debt with the proceeds of such incurrence).”

  
 2.14 Amendment to Section 9.04(a). Section 9.04(a) is
hereby amended in its entirety to read as follows: 
  
 “(a) Restricted Payments. The Borrower will not, and will not permit any of its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any 

  

 7 

 
Restricted Payment, return any capital to its stockholders or make any distribution of its Property to its Equity Interest holders, except (i) the Borrower
may declare and pay dividends with respect to its Equity Interests payable solely in additional shares of its Equity Interests (other than Disqualified Capital Stock), (ii) Subsidiaries may declare and pay dividends ratably with respect to their
Equity Interests, (iii) the Borrower may make Restricted Payments pursuant to and in accordance with stock option plans or other benefit plans for management or employees of the Borrower and its Subsidiaries, (iv) the Borrower may declare and pay
cash dividends to PLX in any fiscal year to pay the Borrower’s allocated share of Taxes (as defined in the Tax Allocation Agreement as it exists on the date hereof) due in the fiscal year such dividend is declared under the Tax Allocation
Agreement as it exists on the date hereof, (v) payments contemplated by the Transition Agreements as in effect on the date hereof and the transactions contemplated thereby; provided that payments made pursuant to the Transition Agreements (other
than the Tax Allocation Agreement and payments permitted by clause (iv) and clause (vii)) shall be limited in an aggregate amount not to exceed $30,000,000, (vi) Nuevo Trust may declare and pay cash dividends to the holders of the TECONs on each
date on which interest on the TECONs is due and payable and in connection with the redemption of all or any portion of the outstanding shares of TECONs, in each case, pursuant to and in accordance with the terms of the Nuevo Trust Designation of
Securities (as in effect on the effective date of the Second Amendment), so long as no Default or Borrowing Base Deficiency has occurred and is continuing, or would result after giving effect to such payment and (vii) to the extent not permitted by
clauses (i) to (vi) above, the Borrower may make Restricted Payments in respect of Equity Interests of the Borrower in an amount not to exceed $2,500,000 in the aggregate minus the aggregate principal amount of 2002 Senior Subordinated and Permitted
Additional Senior Subordinated Notes Redeemed under Section 9.04(b)(i).” 
  
 2.15 Amendments to Section 9.04(b)(ii)(B). Section 9.04(b)(ii)(B) is hereby amended in its entirety to read as follows: 
  

“(B) such action requires the payment of a consent fee (other than in connection with a consent solicitation solely to conform all
or a portion of the covenants contained in the 2002 Senior Subordinated Indenture to the covenants contained in the Permitted Additional Senior Subordinated Indenture, provided that such consent fee is acceptable to the Administrative Agent)
or” 
  
 2.16 Amendments to Section 9.05. 

 
 (a) Section 9.05(l) is hereby amended in its entirety to
read as follows: 
  
 “(l) Investments in
Unrestricted Subsidiaries, provided that (i) the aggregate amount of all such Investments (other than Investments deemed made in Nuevo and its Subsidiaries by the Borrower as a result of the designation of such Persons as Unrestricted Subsidiaries
pursuant to Section 9.06(b)) at any one time shall not exceed $5,000,000 (or its equivalent in other currencies as of the date of Investment) and (ii) the Borrowing Base Utilization Percentage is less than 80% immediately before and immediately
after giving effect to such Investment.” 
  

 8 

 (b) Section 9.05(n) is hereby amended in its entirety to read as follows: 
  
 “(n) cash payments to the holders of cancelled stock
options and restricted stock of Nuevo pursuant to and in accordance with Section 3.3 of the Nuevo Agreement and Plan of Merger (as in effect on the effective date of the Second Amendment).” 
  
 (c) Section 9.05(o), (p) and (q) are hereby added to read as
follows: 
  
 “(o) the acquisition of Equity
Interests of Nuevo for Equity Interests of the Borrower pursuant to and in accordance with the Nuevo Acquisition Documents and the conversion of Nuevo Debentures and TECONs into Equity Interests of the Borrower pursuant to and in accordance with the
Nuevo Subordinated Indenture and the Nuevo Trust Designation of Securities.” 
  
 “(p) other Investments made by the Borrower in Nuevo and its Subsidiaries not to exceed $75,000,000 in the aggregate.”

  
 “(q) other Investments not to exceed
$1,000,000 in the aggregate at any time.” 
  
 2.17
Amendment to Section 9.06(d). Section 9.06(d) is hereby amended in its entirety to read as follows: 
  
 “(d) The Borrower shall not permit the aggregate principal amount of all Non-Recourse Debt (other than Non-Recourse Debt of Nuevo and
its Subsidiaries in an aggregate amount not to exceed $500,000,000) outstanding at any one time to exceed $25,000,000.” 
  
 2.18 Amendment to Section 9.13(e)(ii). Section 9.13(e)(ii) is hereby amended in its entirety to read as follows: 
  
 “(ii) if such sale or other disposition of Oil and Gas
Property or Restricted Subsidiary owning Oil and Gas Properties included in the most recently delivered Reserve Report during any period between two successive Scheduled Redetermination Dates has a fair market value in excess of five percent (5%) of
the Borrowing Base then in effect (as reasonably determined by the board of directors of the Borrower and, if requested by the Administrative Agent, the Borrower shall deliver a certificate of a Responsible Officer of the Borrower certifying to that
effect), individually or in the aggregate, the Borrowing Base shall be reduced, effective immediately upon such sale or disposition, by an amount equal to the value, if any, assigned such Property in the most recently delivered Reserve Report
and” 
  
 2.19 Amendment to Section 9.15. Section 9.15
is hereby amended to insert the words “Nuevo Agreement and Plan of Merger, the Nuevo Management Services Agreement,” after the words “contemplated by the” in the first line thereof. 
  

 9 

 2.20 Amendment to Section 9.18. Section 9.18 is hereby amended by replacing the words
“one-half bcf” with the words “two bcf” in the last line thereof. 
  
 2.21 Amendment to Section 9.19(a)(ii). Section 9.19(a)(ii) is hereby amended in its entirety to read as follows: 
  
 “(ii) the notional volumes for which (when aggregated with other commodity Swap Agreements then in effect other than basis
differential swaps on volumes already hedged pursuant to other Swap Agreements) do not exceed, as of the date such Swap Agreement is executed, for (A) natural gas, 85% of the reasonably anticipated projected production from proved, developed,
producing Oil and Gas Properties for each month during the period during which such Swap Agreement is in effect and (B) crude oil, 90% of the reasonably anticipated projected production from proved Oil and Gas Properties for each month during the
period commencing on such date and ending on the date twelve months thereafter, and for each month during any period after such twelve-month period, 85% of the reasonably anticipated projected production from proved Oil and Gas Properties for each
month during such period, and” 
  
 2.22 Amendment to
Section 11.10. Section 11.10 is hereby amended by inserting the words “, Managing Agents” after the words “Documentation Agents” in the heading thereof and by inserting the words “, the Managing Agents” after the
words “the Documentation Agents” in the first line thereof. 
  
 2.23 Amendment to Section 12.01(a)(i). Section 12.01(a)(i) is hereby amended in its entirety to read as follows: 
  
 “(i) if to the Borrower, to it at 700 Milam Street, Suite 3100, Houston, Texas 77002-4804, Attention of Stephen A. Thorington
(Telecopy No. (832) 329-6200);” 
  
 2.24 Amendment
Schedule 7.15. Schedule 7.15 is hereby amended in its entirety to read as set forth in Exhibit A hereto. 
  
 Section 3. Conditions Precedent. This Second Amendment shall not become effective until the date on which each of the following conditions is
satisfied (or waived in accordance with Section 12.02 of the Credit Agreement) (the “Effective Date”): 
  
 3.1 The Administrative Agent and the Lenders shall have received all fees and other amounts due and payable in connection with this Second Amendment on or
prior to the Effective Date. 
  
 3.2 The Administrative Agent
shall have received from all of the Lenders, the Borrower and each Guarantor, counterparts (in such number as may be requested by the Administrative Agent) of this Second Amendment signed on behalf of such Persons. 
  
 3.3 The Administrative Agent shall have received a copy, certified by a
Responsible Officer as true and complete, of the Nuevo Subordinated Indenture, the Nuevo Trust Declaration of Trust, the Nuevo Trust Designation of Securities, the Nuevo Escrow Agreement, the Nuevo Management Services Agreement, the Nuevo Credit
Agreement, and the Indenture dated as of 

  

 10 

 
September 26, 2000, between Nuevo, as issuer, and State Street Bank and Trust Company, as trustee, pursuant to which the 2010 Nuevo Senior Subordinated Notes
were issued, in each case, including all amendments, modifications and supplements thereto, as in effect on the Effective Date. 
  
 3.4 The Majority Lenders shall be satisfied that all consents and approvals required for the consummation of the Nuevo Acquisition, including
shareholders’ consents and approvals, have been obtained and are in full force and effect and that the Nuevo Acquisition is being consummated contemporaneously herewith and all other conditions to the Nuevo Acquisition shall have been satisfied
or waived in accordance with the terms and conditions of the Nuevo Acquisition Documents, and the Administrative Agent shall have received a certificate dated as of the Effective Date of a Responsible Officer of the Borrower certifying that (a) all
such consents and approvals have been obtained and are in full force and effect and (b) attached thereto are true and complete copies of the Nuevo Acquisition Documents, the certificate of merger related to the Nuevo Acquisition certified by the
Secretary of State of Delaware, and all material SEC filings theretofore made by the Borrower in respect of the Nuevo Acquisition. 
  
 3.5 The Majority Lenders shall be reasonably satisfied with the terms, conditions and documentation of the Nuevo Acquisition and the Nuevo Acquisition
Documents. 
  
 3.6 The Administrative Agent shall have received an
opinion dated as of the Effective Date of Bracewell & Patterson, L.L.P., special counsel to the Borrower, in form and substance reasonably satisfactory to the Administrative Agent. 
  
 3.7 The Administrative Agent shall have received the financial statements referred to in Section 4.2(b) hereof. 

 
 3.8 The Administrative Agent shall have received such other documents as
the Administrative Agent or special counsel to the Administrative Agent may reasonably request. 
  
 3.9 There shall be no actions, suits, investigations or proceedings by or before any arbitrator or Governmental Authority pending against or threatened
against or affecting the Borrower or any Subsidiary that involve any Nuevo Acquisition Document or that could impair the consummation of the Nuevo Acquisition on the time and in the manner contemplated by the Nuevo Acquisition Documents. 

 
 3.10 No Default shall have occurred and be continuing, after giving effect
to the terms of this Second Amendment. 
  
 The Administrative
Agent shall notify the Borrower and the Lenders of the Effective Date. 
  
 Section 4. Miscellaneous. 
  
 4.1
Confirmation. The provisions of the Credit Agreement, as amended by this Second Amendment, shall remain in full force and effect following the effectiveness of this Second Amendment. 
  

 11 

 4.2 Ratification and Affirmation; Representations and Warranties. 
  
 (a) Each Obligor hereby (i) acknowledges the terms of this
Second Amendment; (ii) ratifies and affirms its obligations under, and acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in
full force and effect, except as expressly amended hereby, notwithstanding the amendments contained herein and (iii) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this Second Amendment: (A)
all of the representations and warranties contained in each Loan Document to which it is a party are true and correct, except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such
representations and warranties shall continue to be true and correct as of such specified earlier date, (B) no Default has occurred and is continuing and (C) since April 4, 2003, there has been no event, development or circumstance that has had or
could reasonably be expected to have a Material Adverse Effect. 
  
 (b) The Borrower hereby represents and warrants to the Lenders that: (i) it has furnished to the Lenders on or before the date hereof (A) Nuevo’s balance sheet and statements of income, shareholders’ equity
and cash flows as of and for the fiscal year ended December 31, 2003, reported on by KPMG LLP, independent public accountants and (B) the summary unaudited combined pro forma financial data set forth in the joint proxy statement/prospectus
included in the Registration Statement on Form S-4 filed with the SEC in connection with the Nuevo Acquisition; the summary unaudited combined pro forma consolidated financial data presents fairly, in all material respects, the pro
forma consolidated financial condition of the Borrower, as of such dates in accordance with GAAP; and (ii) there are no actions, suits, investigations or proceedings by or before any arbitrator or Governmental Authority pending against or, to
the knowledge of the Borrower, threatened against or affecting the Borrower or any Subsidiary that involve any Nuevo Acquisition Document or that could impair the consummation of the Nuevo Acquisition on the time and in the manner contemplated by
the Nuevo Acquisition Documents. 
  
 4.3 Loan Document.
This Second Amendment is a “Loan Document” as defined and described in the Credit Agreement and all of the terms and provisions of the Credit Agreement relating to Loan Documents shall apply hereto. 
  
 4.4 Lenders’ Satisfaction. For purposes of determining compliance
with the conditions specified in Section 3 hereof, each of the undersigned Lenders shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved
by or acceptable or satisfactory to a Lender upon its execution and delivery of a counterpart of this Second Amendment. 
  
 4.5 Counterparts. This Second Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of
such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of this Second Amendment 

  

 12 

 
by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof. 
  
 4.6 No Oral Agreement. This Second Amendment, the Credit Agreement and
the other Loan Documents executed in connection herewith and therewith represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or unwritten oral agreements of the parties. There are no
subsequent oral agreements between the parties. 
  
 4.7
GOVERNING LAW. THIS SECOND AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 [SIGNATURES BEGIN NEXT PAGE] 
  

 13 

 IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be duly executed as of the
date first written above. 
  

									
	 BORROWER:
	 	 	 	 PLAINS EXPLORATION & PRODUCTION COMPANY

					
	 	 	 	 	 	 	 By:
	 	/s/    STEPHEN A.
THORINGTON        
	 	 	 	 	 	 	 	 	 Stephen A. Thorington
 Executive Vice President and
 Chief Financial Officer

  

 S-1 

									
	 GUARANTORS:
	 	 	 	 ARGUELLO INC.
 PLAINS E&P COMPANY PMCT INC.
 PLAINS RESOURCES INTERNATIONAL INC.

					
	 	 	 	 	 	 	 By:
	 	/s/    STEPHEN A.
THORINGTON        
	 	 	 	 	 	 	 	 	 Stephen A. Thorington
 Vice President and Treasurer

			
	 	 	 	 	 PXP GULF COAST INC.

					
	 	 	 	 	 	 	 By:
	 	/s/    STEPHEN A.
THORINGTON        
	 	 	 	 	 	 	 	 	 Stephen A. Thorington
 Executive Vice President and
 Chief Financial Officer

  

 S-2 

									
	 ADMINISTRATIVE AGENT:
	 	 	 	JPMORGAN CHASE BANK, as a Lender and as Administrative Agent
					
	 	 	 	 	 	 	 By:
	 	/s/    ROBERT C.
MERTENSOTTO        
	 	 	 	 	 	 	 	 	 Robert C. Mertensotto
 Managing Director

  

 S-3 

			
	BANK ONE, NA (MAIN OFFICE CHICAGO),
as a Lender and as a Co-Syndication Agent
		
	By:	 	/s/    CHARLES
KINGSWELL-SMITH        
	 	 	 Charles Kingswell-Smith
 Director

  

 S-4 

			
	 HARRIS NESBITT FINANCING, INC.,
 as a Lender
and as a Co-Syndication Agent

		
	By:	 	/s/    JAMES V. DUCOTE        
	 	 	 James V. Ducote
 Vice President

  

 S-5 

			
	 BNP PARIBAS, as a Lender and
 as a
Co-Documentation Agent

		
	By:	 	/s/    BETSY JOCHER        
	 	 	 Betsy Jocher
 Vice President

		
	By:	 	/s/    POLLY SCHOTT        
	 	 	 Polly Schott
 Vice President

  

 S-6 

			
	 THE BANK OF NOVA SCOTIA, as a Lender and
 as
a Co-Documentation Agent

		
	By:	 	/s/    N. BELL        
	 	 	 N. Bell
 Senior Manager

  

 S-7 

			
	BANK OF SCOTLAND, as a Lender and as a Managing Agent
		
	 By:
	 	/s/    ANNIE GLYNN        
	 	 	 Annie Glynn
 Senior Vice President

  

 S-8 

			
	FLEET NATIONAL BANK, as a Lender and as a Managing Agent
		
	 By:
	 	/s/    RONALD E.
MCKAIG        
	 	 	 Ronald E. McKaig
 Managing Director

  

 S-9 

			
	FORTIS CAPITAL CORP., as a Lender and as a Managing Agent
		
	 By:
	 	/s/    CHRIS PARADA        
	 	 	 Chris Parada
 Vice President

		
	 By:
	 	/s/    DARRELL W. HOLLEY        
	 	 	 Darrell W. Holley
 Managing Director

  

 S-10 

			
	 WACHOVIA BANK, NATIONAL
 ASSOCIATION, as a
Lender and as a Managing Agent

		
	 By:
	 	/s/    DAVID HUMPHREYS        
	 	 	 David Humphreys
 Vice President

  

 S-11 

			
	 WELLS FARGO BANK TEXAS, NATIONAL
 ASSOCIATION, as a Lender and as a Managing Agent

		
	 By:
	 	/s/    PAUL A. SQUIRES        
	 	 	 Paul A. Squires
 Vice President

  

 S-12 

			
	CALYON NEW YORK BRANCH, as successor in interest by consolidation to Credit Lyonnais New York Branch, as a Lender
		
	 By:
	 	/s/    OLIVIER AUDEMARD        
	 	 	 Olivier Audemard
 Managing Director

  

 S-13 

			
	 COMERICA BANK - TEXAS, as a Lender

		
	 By:
	 	/s/    JULI BIESER        
	 	 	 Juli Bieser
 Vice President

  

 S-14 

			
	DEUTSCHE BANK TRUST COMPANY AMERICAS, as a Lender
		
	 By:
	 	/s/    MARCUS TARKINGTON        
	 	 	 Marcus Tarkington
 Director

  

 S-15 

			
	 TORONTO DOMINION (TEXAS), INC.,
 as a
Lender

		
	 By:
	 	/s/    RACHEL SUITER        
	 	 	 Rachel Suiter
 Vice President

  

 S-16 

 EXHIBIT A 
 SCHEDULE 7.15 
  

							
	 Restricted Subsidiaries

	  	Jurisdiction of
Organization

	  	Organizational
Identification
Number

	 	Principal Place of Business
and Chief Executive Office

				
	 Plains E&P Company
	  	Delaware	  	3537380	 	700 Milam Street
Suite 3100
Houston, Texas 77002
				
	 Arguello Inc.
	  	Delaware	  	3049327	 	17100 Calle Mariposa
Reina
Goleta, CA 93117
				
	 PMCT Inc.
	  	Delaware	  	2347791	 	700 Milam Street
Suite 3100
Houston, Texas 77002
				
	 Plains Resources International Inc.
	  	Delaware	  	2098736	 	700 Milam Street
Suite 3100
Houston, Texas 77002
				
	 PXP Gulf Coast Inc.
	  	Delaware	  	3620115	 	700 Milam Street
Suite 3100
Houston, Texas 77002
				
	 Unrestricted Subsidiaries

	  	Jurisdiction of
Organization

	  	Organizational
Identification
Number

	 	Principal Place of Business
and Chief Executive Office

				
	 PXP California Inc.
	  	Delaware	  	3763314	 	700 Milam Street
Suite 3100
Houston, Texas 77002
				
	 Nuevo Energy Company
	  	Delaware	  	2223581	 	 
				
	 Nuevo International Inc.
	  	Delaware	  	2919685	 	 
				
	 Nuevo Peru Ltd.
	  	Cayman Islands	  	 	 	 
				
	 Pacific Interstate Offshore Company
	  	California	  	C1101237	 	 
				
	 Nuevo Canada Inc.
	  	Alberta	  	 	 	 
				
	 Nuevo Offshore Company
	  	Delaware	  	3499393	 	 
				
	 Sepulveda Oil and Gas Company
	  	Delaware	  	0443508	 	 
				
	 Nuevo Resources Inc.
	  	Delaware	  	2873501	 	 
				
	 Nuevo Texas Inc.
	  	Delaware	  	[2814683 or
3567873]	 	 
				
	 Nuevo Permian Inc.
	  	Delaware	  	3083272	 	 
				
	 Nuevo Permian Limited Partnership
	  	Texas	  	12343610	 	 
				
	 Nuevo Ghana Inc.
	  	Delaware	  	2695238	 	 
				
	 Nuevo Tunisia Ltd.
	  	Cayman Islands	  	 	 	 
				
	 Nuevo International Holdings Ltd.
	  	Cayman Islands	  	 	 	 
				
	 Nuevo Congo Ltd.
	  	Cayman Islands	  	 	 	 
				
	 Nuevo Anaguid Ltd.
	  	Cayman Islands	  	 	 	 
				
	 Nuevo Alyane Ltd.
	  	Cayman Islands	  	 	 	 
				
	 Nuevo Tarfaya Ltd.
	  	Cayman Islands	  	 	 	 
				
	 The Congo Holdings Company
	  	Texas	  	0131403200	 	 
				
	 The Nuevo Congo Company
	  	Delaware	  	2031233	 	 

  

 Exhibit A-1Form of Employment Agreement, Chief Executive Officer.

 EXHIBIT 10.3 
  
 PLAINS EXPLORATION & PRODUCTION COMPANY 
  
 FORM OF EMPLOYMENT AGREEMENT 
  

CHIEF EXECUTIVE OFFICER 
  
 This Employment Agreement (“Agreement”) by and between Plains Exploration & Production Company, a Delaware corporation
(“Company”), and                              (“Employee”) is entered into
effective as of June 9, 2004 (the “Effective Date”). 
  
 WHEREAS, Company desires to employ Employee and Employee desires to be employed by Company; 
  
 NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties, and agreements contained herein, and for other valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows: 
  
 1. Employment-at-will. Company agrees to employ Employee, and Employee hereby agrees to be employed by Company. Employment of Employee shall be at
will and may be terminated by either party on the terms and conditions set forth in this Agreement. 
  
 2. Term of Employment. Subject to the provisions for termination provided in the Agreement, the term of this Agreement (the “Term”) shall
commence on the Effective Date and shall continue through the fifth anniversary of the Effective Date. The Term shall be automatically renewed and extended for a period of twenty-four (24) months commencing on the third annual anniversary of the
Effective Date and on each successive day thereafter. 
  
 3.
Employee’s Duties. During the Term, Employee shall serve as the Chairman of the Board and the Chief Executive Officer of Company, with such customary duties and responsibilities as may from time to time be assigned to him by the Board of
Directors of the Company (the “Board”), provided that such duties are at all times consistent with the duties of such position. Employee shall report directly to the Board. All other employees of the Company shall report directly to
Employee. Employee agrees to serve without additional compensation, if elected or appointed thereto, in one or more offices or a director of any of Company’s subsidiaries. For purposes of this Agreement, a “Subsidiary” shall mean any
entity in which Company owns a majority of the voting stock of the class of securities (or other interests in the case of a limited liability company or partnership) that may vote in the election of the members of the governing body of such entity.
Company understands and acknowledges that Employee shall be an employee, executive officer and director of Plains Resources Inc. (“PLX”), and therefore, Employee will not be able to devote all of his attention and time during normal
business hours to Company. Accordingly, Company agrees that the performance of Employee’s duties on behalf of PLX shall not be a breach of this Agreement. Employee may engage in the following activities so long as they do not interfere in any
material respect with the performance of Employee’s duties and responsibilities hereunder: (i) serve on corporate, civic or charitable boards or committees, (ii) deliver lectures, fulfill speaking engagements or teach on a part-time basis at
educational institutions but not more than 20 hours per month, and (iii) manage his personal investments; provided, however, that in no event shall the conduct of any such activities 

  

 
by Employee be deemed to materially interfere with Employee’s duties hereunder until Employee has been notified in writing thereof by the Board and
given a reasonable period in which to cure such interference. In addition, Employee shall be permitted to manage his personal investments provided that (a) such management shall not interfere in any material respect with the performance of
Employee’s duties and responsibilities hereunder or violate Company’s conflicts policy as in effect from time to time, (b) Employee informs the Board of any conflicts of interest (whether actual or apparent) with Company and any of its
Subsidiaries, including any event reasonably likely to raise the appearance of conflicts, and (c) Employee notifies the Board of, and discusses with the Board with respect to, any opportunities presented to Employee or any of the entities in which
Employee owns a majority interest in connection with such continued ownership and management that should be offered to Company or its Subsidiaries. Notwithstanding the foregoing, Company agrees that Employee’s management of his current personal
investments, as disclosed to Company prior to the Effective Date, shall not be deemed to materially interfere with his duties hereunder. 
  
 Company agrees to (a) nominate Employee as a director of Company during the Term and (b) use its best efforts to cause Employee to be elected or
appointed, or re-elected or re-appointed, as a director of Company during the Term, and (c) use its reasonable best efforts to appoint Employee a member of each committee of the Board, other than the Compensation Committee, to the extent such
membership does not create any conflicts of interest with respect to Company and is permitted by Company’s certificate of incorporation or by-laws as in effect from time to time or applicable federal, state or local laws, regulations or rules,
including, but not limited to, rules of any stock exchange. 
  
 4.
Compensation. 
  
 (a) Base
Compensation. For services rendered by Employee under this Agreement, Company shall pay to Employee a base salary (“Base Compensation”) of $800,000.00 per annum payable in accordance with Company’s customary payroll practice for
its senior executive officers. The amount of Base Compensation shall be reviewed periodically by the Compensation Committee of the Board of Directors (the “Committee”) and may be increased from time to time as the Committee may deem
appropriate. Base Compensation, as in effect at any time, may not be decreased without the prior written consent of Employee. 
  
 (b) Annual Bonus. In addition to his Base Compensation, Employee shall be eligible to receive each year during the Term, a cash
incentive payment (“Bonus”) in an amount determined by the Committee based on Employee’s individual performance and the performance of Company. The Target Bonus shall be an amount equal to 100% of Employee’s Base Compensation.

  
 (c) Equity Compensation. In addition
to any equity-based compensation heretofore issued to Employee by the Company or PLX, Employee shall be eligible to participate in any equity compensation arrangement or plan offered by the Company to senior executives on such terms and conditions
as the Compensation Committee of the Board shall determine. Nothing herein shall be construed to give Employee any rights to any amount or type of awards, or rights as a shareholder pursuant to any such plan, grant 

  

 2 

 
or award except as provided in such award or grant to Employee provided in writing and authorized by the Compensation Committee of the Board. 
  
 (d) Long-term Retention. Effective as of June 9,
2004, Employee shall receive a grant of three hundred thousand (300,000) Restricted Stock Units pursuant to the Plains Exploration & Production Company 2004 Stock Incentive Plan and fifty thousand (50,000) Restricted Stock Units pursuant to the
Plains Exploration & Production Company 2002 Stock Incentive Plan. Effective as of January 1, 2005, Employee shall receive a grant of one hundred fifty thousand (150,000) Restricted Stock Units pursuant to the Plains Exploration & Production
Company 2004 Stock Incentive Plan. The Restricted Stock Units granted to Employee pursuant to this section shall be collectively referred to herein as the “LSIP.” 
  
 5. Other Benefits; Business Expenses. 
  
 (a) Employee shall be entitled to participate in all incentive compensation plans and to receive all fringe
benefits and perquisites offered by Company to any of its senior executive officers, including, without limitation, participation in the various health, retirement, life insurance, short-term and long-term disability insurance, parking and other
employee benefit plans or programs provided to the employees of Company in general, subject to the regular eligibility requirements with respect to each of such benefit plans or programs, and such other benefits or perquisites as may be approved by
the Committee during the Term, all on a basis at least as favorable to Employee as may be provided to similarly situated senior executive officers of Company. Employee shall be entitled to take appropriate and reasonable annual vacation time
provided that such vacation time does not interfere with his duties hereunder. Company shall reimburse Employee for monthly country or golf and luncheon club dues and one club initiation fee. 
  
 (b) Company shall reimburse Employee for all reasonable
business expenses incurred by Employee in the performance of his duties, which expenses will be subject to the oversight of Company’s audit committee in the normal course. It is understood that Employee is authorized to incur reasonable
business expenses for promoting the business of Company, including reasonable expenditures for travel, lodging, meals and client or business associate entertainment. Request for reimbursement for such expenses must be accompanied by appropriate
documentation. Employee shall be entitled to personal use of Company aircraft in accordance with Company policy for such use by senior executives. 
  
 6. Termination. Employee’s employment may be terminated as set forth below: 
  
 (a) Resignation. Employee may resign his position at any time. In the event of such resignation,
except in the case of resignation for Good Reason (as defined below), Employee shall not be entitled to further compensation pursuant to this Agreement except as may be provided by the terms of any benefit plans of Company in which Employee may be a
participant, and the terms of any outstanding equity grants, and for salary accrued but unpaid through the date of resignation and reimbursement of expenses prior to such date. 
  

 3 

 (b) Death. If Employee’s employment is terminated due to his death, this
Agreement shall terminate and Company shall have no obligations to his legal representatives with respect to this Agreement other than the payment of benefits and salary as described in Section 6(c)(i) below, salary accrued but unpaid through the
date of termination, reimbursement of expenses prior to such date and benefits under the terms of any outstanding equity grants. 
  
 (c) Other Termination. 
  
 (i) Company may terminate this Agreement and Employee’s employment for any reason deemed sufficient by Company upon notice as
provided in Section 10. For purposes of this Agreement, acceptance by the Company of the Employee’s resignation upon request or by mutual agreement shall be deemed to be a termination by the Company. In the event that Employee’s employment
is terminated by Company for any reason other than Cause, in the event of Employee’s death or Disability, or if Employee resigns for Good Reason, then in addition to any compensation or benefits to which Employee may be entitled through the
Date of Termination (as defined below): (A) Company shall pay Employee immediately upon termination of Employee’s employment a lump sum equal to one times the sum of the Base Compensation and the Target Bonus; and (B) for the 36-month period
after the Date of Termination, Company shall provide or arrange to provide Employee (and Employee’s dependents) with health insurance benefits no less favorable than the health plan benefits provided by Company (or any successor) during such
36-month period to any senior executive officer of Company. To the extent the health care coverage or benefits received by Employee after termination are taxable to Employee, Company shall make Employee “whole” on a net after tax basis;
provided, however, that such coverage shall cease if Employee obtains comparable replacement coverage (although Employee shall have no obligation to pursue such coverage). 
  
 (ii) In the event of Employee’s termination or resignation under the circumstances described in
Sections 6(b) or 6(c) all then outstanding Company stock-based awards of Employee, all equity compensation described in Section 4(c) shall become immediately exercisable and payable in full, as the case may be, with any performance goals associated
therewith being deemed to have been achieved at the maximum levels and all restrictions removed with respect thereto (including without limitation with respect to any options that would otherwise vest in accordance with performance goals and any
grants of restricted stock that shall have been granted prior to the Effective Date). 
  
 (d) Termination for Cause. 
  
 (i) Notwithstanding the foregoing provisions of this Section 6, in the event Employee is terminated because of Cause, Company shall have
no obligations pursuant to this Agreement after the Date of Termination other than reimbursement of expenses incurred prior to such date. For purposes herein, 

  

 4 

 
“Cause” means (A) the failure by Employee to perform reasonably assigned duties with Company, (B) the engaging by Employee in conduct which is
demonstrably and materially injurious to Company and its Subsidiaries taken as a whole, (C) Employee’s having been convicted of, or entered a plea of nolo contendere to burglary, larceny, murder or arson or a crime involving deceit, fraud,
perjury or embezzlement, or (D) failure to notify Company of any actual or apparent conflicts of interest relating to Employee’s management of personal investments in accordance with Section 3 of this Agreement. Notwithstanding the foregoing,
prior to any termination for Cause under clauses (A), (B) or (D) of the preceding sentence, (X) Company must provide Employee with reasonable notice detailing the failure or conduct which the Board believes to constitute Cause, (Y) Company must
provide Employee a reasonable opportunity to cure such failure or conduct, and (Z) after such notice and an opportunity to cure, a majority of the Board must reasonably determine that Employee has not cured such failure or conduct. Notwithstanding
the foregoing provisions, Employee shall not be deemed to have been terminated for Cause unless and until Employee shall have been provided an opportunity to be heard in person by the Board (with the assistance of Employee’s counsel if Employee
so desires). 
  
 (ii) Company shall reimburse
Employee for business expenses properly incurred prior to the Date of Termination, regardless of the circumstances of termination. 
  
 (e) Resignation for Good Reason. If Employee resigns his employment for Good Reason, Employee shall be entitled to the compensation
and benefits provided in Section 6(c) hereof. “Good Reason” shall mean (1) the material breach of any of the Company’s obligations under this Agreement without Employee’s written consent or (2) the occurrence of any of the
following circumstances, without Employee’s written consent: 
  
 (i) the assignment to Employee by the Board of any duties that materially adversely alter the nature or status of Employee’s office, title, responsibilities, including reporting responsibilities, from those in
effect immediately prior to such assignment; 
  
 (ii) the failure by Company to continue in effect any compensation plan in which Employee participates that is material to Employee’s total compensation unless an equitable arrangement (embodied in an ongoing substitute or alternative
plan) has been made with respect to such plan, or the failure by Company to continue Employee’s participation therein (or in such substitute or alternative plan) on a basis not materially less favorable to Employee, unless any such failure to
continue in effect any compensation plan or participation relates to a discontinuance of such plans or participation on a management-wide or Company-wide basis; 
  
 (iii) the taking of any action by Company which would directly or indirectly materially reduce or deprive
Employee of any material pension, welfare 

  

 5 

 
or fringe benefit then enjoyed by Employee, unless such action relates to a discontinuance of benefits on a management-wide or Company-wide basis;

  
 (iv) the relocation of Company’s
principal executive offices outside the greater Houston, Texas metropolitan area, or Company’s requiring Employee to relocate anywhere other than the location of Company’s principal executive offices, except for required travel on
Company’s business to an extent substantially consistent with Employee’s obligations under this Agreement; 
  
 (v) the failure to nominate Employee as a director of Company or to use best efforts to cause Employee to be elected or appointed, or
re-elected or re-appointed, as a director of Company or to use reasonable best efforts to appoint Employee a member of a committee in accordance with, and to the extent provided, in Section 3 hereof; or 
  
 (vi) the Employee’s termination of his employment with
Company or any successor who has assumed this Agreement in accordance with Section 12 hereof following a Change in Control of Company. 
  
 Employee’s right to terminate employment pursuant to this subsection shall not be affected by Employee’s incapacity due to
physical or mental illness. In addition, Employee’s continued employment following any event, act or omission, regardless of the length of such continued employment, shall not constitute Employee’s consent to, or a waiver of
Employee’s rights with respect to, such event, act or omission constituting a Good Reason circumstance hereunder. 
  
 (f) Disability. If Employee shall have been absent from the full-time performance of Employee’s duties with Company for six
consecutive months as a result of Employee’s incapacity due to physical or mental illness as determined by Employee’s physician (“Disability”), Employee’s employment may be terminated by Company for Disability. If
Employee’s employment is terminated for Disability, Employee shall be entitled to the compensation and benefits provided in Section 6(c) hereof. If Employee fails during any period during the Term to perform Employee’s full-time duties
with Company as a result of incapacity due to physical or mental illness, as determined by Employee’s physician, Employee shall continue to receive his benefits under this Agreement during such period until this Agreement is terminated for
Disability by Company. 
  
 (g) Notice of
Termination. Any purported termination of Employee’s employment by Company or by Employee shall be communicated by written Notice of Termination to the other party hereto in accordance with Section 10 hereof. Any Notice of Termination shall
be deemed to also be Employee’s resignation as director or officer of any subsidiary of the Company. 
  
 (h) Date of Termination. “Date of Termination” shall mean in the case of Employee’s death, his date of death, and in
all other cases, the date specified in the Notice of Termination. If no notice is given by Employee, termination shall be effective 

  

 6 

 
on the last date Employee reported for work with Company, and shall be deemed to be a voluntary termination. 
  
 (i) Mitigation. Employee shall not be required to
mitigate the amount of any payment or benefit provided for in this Section 6 by seeking other employment or otherwise, nor, except as provided in Section 6(c), shall the amount of any payment or benefit provided for in this Agreement be reduced by
any compensation or benefit earned by Employee as a result of employment by another employer, self-employment earnings, by retirement benefits, by offset against any amount claimed to be owing by Employee to Company, or otherwise. 
  
 (j) Full Tax Gross-Up of Parachute Payments. In the
event that any payment, award, benefit or distribution (or any acceleration of any payment, award, benefit or distribution) made or provided to or for the benefit of Employee in connection with this Agreement, or Employee’s employment with
Company or the termination thereof (the “Payments”) are determined to be subject to the excise tax imposed by Section 4999 of the Code or any interest or penalties with respect to such excise tax (such excise tax, together with any such
interest and penalties, are collectively referred to as the “Excise Tax”), then the Employee shall be entitled to receive an additional payment (a “Gross-Up Payment”) from Company such that the net amount received by the
Executive after paying any applicable Excise Tax and any federal, state or local income or FICA taxes on such Gross-Up Payment, shall be equal to the amount Executive would have received if such Excise Tax were not applicable to the Payments.

  
 For purposes of determining whether any of
the Payments will be subject to the Excise Tax and the amount of such Excise Tax, (i) all of the Payments shall be treated as “parachute payments” (within the meaning of Section 280G(b)(2) of the Code) unless, in the opinion of tax counsel
(“Tax Counsel”) reasonably acceptable to the Employee, such payments or benefits (in whole or in part) do not constitute parachute payments, including by reason of Section 280G(b)(4)(A) of the Code; (ii) all “excess parachute
payments” within the meaning of Section 280G(b)(1) of the Code shall be treated as subject to the Excise Tax unless, in the opinion of Tax Counsel, such excess parachute payments (in whole or in part) represent reasonable compensation for
services actually rendered (within the meaning of Section 280G(b)(4)(B) of the Code) in excess of the base amount (as the term “base amount” is defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation, or are
otherwise not subject to the Excise Tax; and (iii) the value of any noncash benefits or any deferred payment or benefit shall be determined by the Tax Counsel in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. For purposes
of determining the amount of the Additional Payment, the Employee shall be deemed to pay federal income tax at the highest marginal rate of federal income taxation in the calendar year in which the Total Payments are made and State and local income
taxes at the highest marginal rate of taxation in the State and locality of the Employee’s residence on the date the Total Payments are made, net of the maximum reduction in federal income taxes which could be obtained from deduction of such
State and local taxes. 
  

 7 

 In the event that the Excise Tax is determined by the IRS, on audit or otherwise, to
exceed the amount taken into account hereunder in calculating the Gross-Up Payment (including by reason of any payment the existence or amount of which cannot be determined at the time of the Gross-Up Payment), the Company shall make another
Gross-Up Payment in respect of such excess (plus any interest, penalties or additions payable by the Employee with respect to such excess) within the ten (10) business days immediately following the date that the amount of such excess is finally
determined. The Employee and the Company shall each reasonably cooperate with the other in connection with any administrative or judicial proceedings concerning the existence or amount of liability for Excise Tax with respect to the Total Payments.

  
 If a termination of the Employee’s
employment shall have occurred, the Company shall promptly reimburse to the Employee all reasonable attorneys fees and expenses necessarily incurred by the Employee in disputing in good faith any issue with the Company or its affiliates pursuant to
this Agreement or asserting in good faith any claim, demand or cause of action against the Company or its affiliates pursuant to this Agreement. Such payments shall be made within ten (10) business days after delivery of the Employee’s written
requests for payment accompanied with such evidence of fees and expenses incurred as the Company reasonably may require. 
  
 The Gross-Up Payments provided to the Employee shall be made not later than the tenth (10th) business day following the last date the Payments are made; provided, however, that if the amounts of such payments cannot be finally determined on or before
the due date of any Excise Tax return required as a result of the Payments, the Company shall pay to the Employee on or before thirty (30) days preceding the due date of the Excise Tax return, an estimate of the Payments due, as determined in good
faith by the Employee and the Company, the estimate to be of the minimum amount of such payments to which the Employee is clearly entitled, and shall pay the remainder of such payments together with interest on the unpaid remainder (or on all such
payments to the extent the Company fails to make such payments when due) at 120% of the rate provided in Section 1274(b)(2)(B) of the Code as soon as the amount thereof can be determined but in no event later than sixty (60) days after the date the
Total Payments are made. In the event that the amount of the estimated payment exceeds the amount subsequently determined to have been due, such excess shall constitute a non-interest bearing loan by the Company to the Employee, payable on the tenth
(10th) business day after demand by the Company. At the time the payments are made under this Agreement, the Company
shall provide the Employee with a written statement setting forth the manner in which such payments were calculated and the basis for such calculations, including, without limitations any opinions or other advice the Company has received from Tax
Counsel or other advisors or consultants and any such opinions or advice which are in writing shall be attached to the statement. 
  
 (k) Change in Control. For purposes of this Agreement, a Change in Control shall mean an occurrence of the following during the
Term: 
  
 (i) The “acquisition” by any
“Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Securities Exchange Act of 1934, as 

  

 8 

 
amended (the “1934 Act”)) of “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of any securities
of Company which generally entitles the holder thereof to vote for the election of directors of Company (the “Voting Securities”) which, when added to the Voting Securities then “Beneficially Owned” by such Person, would result
in such Person either “Beneficially Owning” fifty percent (50%) or more of the combined voting power of Company’s then outstanding Voting Securities or having the ability to elect fifty percent (50%) or more of Company’s
directors; provided, however, that for purposes of this paragraph (i) of Section 6(k), a Person shall not be deemed to have made an acquisition of Voting Securities if such Person: (a) becomes the Beneficial Owner of more than the permitted
percentage of Voting Securities solely as a result of open market acquisition of Voting Securities by Company which, by reducing the number of Voting Securities outstanding, increases the proportional number of shares Beneficially Owned by such
Person; (b) is Company or any corporation or other Person of which a majority of its voting power or its equity securities or equity interest is owned directly or indirectly by Company (a “Controlled Entity”); (c) acquires Voting
Securities in connection with a “Non Control Transaction” (as defined in paragraph (iii) of this Section 6(k)); or (d) becomes the Beneficial Owner of more than the permitted percentage of Voting Securities as a result of a transaction
approved by a majority of the Incumbent Board (as defined in paragraph (ii) below); or 
  
 (ii) The individuals who, as of the Effective Date, are members of the Board (the “Incumbent Board”), cease for any reason to
constitute at least a majority of the Board; provided, however, that if either the election of any new director or the nomination for election of any new director by Company’s stockholders was approved by a vote of at least a majority of the
Incumbent Board, such new director shall be considered as a member of the Incumbent Board; provided further, however, that no individual shall be considered a member of the Incumbent Board if such individual initially assumed office as a result of
either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated under the 1934 Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board (a
“Proxy Contest”) including by reason of any agreement intended to avoid or settle any Election Contest or Proxy Contest; or 
  
 (iii) The consummation of a merger, consolidation or reorganization involving Company (a “Business Combination”), unless (1) the
stockholders of Company, immediately before the Business Combination, own, directly or indirectly immediately following the Business Combination, at least fifty percent (50%) of the combined voting power of the outstanding voting securities of the
corporation resulting from the Business Combination (the “Surviving Corporation”) in substantially the same proportion as their ownership of the Voting Securities immediately before the Business Combination, and (2) the individuals who
were members of the Incumbent Board immediately prior to the execution of the agreement providing for the Business Combination constitute at least a majority of the members of the Board of Directors of the Surviving 

  

 9 

 
Corporation, and (3) no Person (other than (x) Company or any Controlled Entity, (y) a trustee or other fiduciary holding securities under one or more
employee benefit plans or arrangements (or any trust forming a part thereof) maintained by Company, the Surviving Corporation or any Controlled Entity, or (z) any Person who, immediately prior to the Business Combination, had Beneficial Ownership of
fifty percent (50%) or more of the then outstanding Voting Securities) has Beneficial Ownership of fifty percent (50%) or more of the combined voting power of the Surviving Corporation’s then outstanding voting securities (a Business
Combination described in clauses (1), (2) and (3) of this paragraph shall be referred to as a “Non-Control Transaction”); 
  
 (iv) A complete liquidation or dissolution of Company; or 
  
 (v) The sale or other disposition of all or substantially all of the assets of Company to any Person (other
than a transfer to a Controlled Entity). 
  
 Notwithstanding the foregoing, if Employee’s employment is terminated and Employee reasonably demonstrates that such termination (x) was at the request of a third party who has indicated an intention or has taken steps reasonably
calculated to effect a Change in Control and who effectuates a Change in Control or (y) otherwise occurred in connection with, or in anticipation of, a Change in Control which actually occurs, then for all purposes hereof, the date of a Change in
Control with respect to Employee shall mean the date immediately prior to the date of such termination of employment. 
  
 A Change in Control shall not be deemed to occur solely because fifty percent (50%) or more of the then outstanding Voting Securities is
Beneficially Owned by (x) a trustee or other fiduciary holding securities under one or more employee benefit plans or arrangements (or any trust forming a part thereof) maintained by Company or any Controlled Entity or (y) any corporation which,
immediately prior to its acquisition of such interest, is owned directly or indirectly by the stockholders of Company in substantially the same proportion as their ownership of stock in Company immediately prior to such acquisition. 
  
 Any event that would otherwise constitute a Change in
Control shall not be deemed to be a Change in Control if (i) the Incumbent Board continues to constitute a majority of the Board and (ii) Employee continues to serve as Chairman of the Board and Chief Executive Officer for a period of at least two
years. 
  
 7. Restrictive Covenants. 
  
 (a) Confidential Information, Unauthorized
Disclosure. Employee acknowledges that during the Term, Company may disclose to Employee or provide Employee with access to trade secrets or confidential information of Company or its Subsidiaries; or place Employee in a position to develop
business goodwill on behalf of Company or its Subsidiaries; or entrust Employee with business opportunities of Company or its Subsidiaries. During the period of his employment hereunder and for a period of two (2) 

  

 10 

 
years following the termination of employment, the Employee shall not, whether during the period of his employment hereunder or thereafter, without the
written consent of the Board or a person authorized thereby, disclose to any person, other than an employee of Company or a person to whom disclosure is reasonably necessary or appropriate in connection with the performance by the Employee of his
duties as an executive of Company, any confidential information obtained by him while in the employ of Company with respect to Company’s business, including but not limited to technology, know-how, processes, maps, geological and geophysical
data, other proprietary information and any information whatsoever of a confidential nature, the disclosure of which he knows or should know will be damaging to Company; provided, however, that confidential information shall not include any
information known generally to the public (other than as a result of unauthorized disclosure by the Employee) or any information which the Employee may be required to disclose by any applicable law, order, or judicial or administrative proceeding.

  
 (b) Non-Competition. As part of the
consideration for the compensation and benefits to be paid to Employee hereunder; to protect the trade secrets and confidential information of Company or its Subsidiaries that have been and will in the future be disclosed or entrusted to Employee;
the business good will of Company or its Subsidiaries that has been and will in the future be developed by Employee or the business opportunities that have been and will in the future be disclosed or entrusted to Employee by Company or its
Subsidiaries; and as an additional incentive for Company to enter into this Agreement, Company and Employee agree to the following competition provisions: 
  
 During the Term and for a period of one year thereafter, Employee shall not in North America, directly or indirectly engage in or become
interested financially in as a principal, employee, partner, shareholder, agent, manager, owner, advisor, lender, guarantor of any person engaged in any business substantially identical to the Business (defined below); provided, however, that (a)
Employee may invest in stock, bonds or other securities in any such business (without participating in such business) if: (i)(A) such stock, bonds or other securities are listed on any United States securities exchange or are publicly traded in an
over the counter market and (B) its investment does not exceed, in the case of any capital stock of any one issuer, 5% of the issued and outstanding capital stock, or in the case of bonds or other securities, 5% of the aggregate principal amount
thereof issued and outstanding, or (ii) such investment is completely passive and no control or influence over the management or policies of such business is exercised, or (b) any such business shall be deemed to exclude (i) ownership by Employee or
any affiliated entity of interests in PLX, Plains All American GP LLC, Plains AAP LP Plains All American Pipeline, L.P. and any of their respective subsidiaries and any board positions with respect to such entities, and (ii) the business of Sable
Minerals, Inc. as it exists on the date hereof. The term “Business” shall mean the exploration, development and production of crude petroleum and natural gas. Notwithstanding the foregoing provisions of this Section 7(b), in the event of a
termination of Employee’s employment by Company without Cause or in the event of Employee’s resignation for Good Reason, Employee shall have no further obligations under this Section 7(b). 
  

 11 

 (c) Non-Solicitation. Employee undertakes toward Company and is obligated, during
the Term and for a period of one year thereafter, not to solicit or hire, directly or indirectly, in any manner whatsoever (except in response to a general solicitation), in the capacity of employee, consultant or in any other capacity whatsoever,
one or more of the employees, directors or officers or other persons (hereinafter collectively referred to as “Employees”) who at the time of solicitation or hire, or in the 90 day period prior thereto, are working full-time or part-time
for Company or any of its Subsidiaries and not to endeavour, directly or indirectly, in any manner whatsoever, to encourage any of said Employees to leave his or her job with Company or any of its Subsidiaries and not to endeavour, directly or
indirectly, and in any manner whatsoever, to incite or induce any client of Company or any of its Subsidiaries to terminate, in whole or in part, its business relations with Company or any of its Subsidiaries. 
  
 (d) Enforcement. It is the desire and intent of the
parties that the provisions of this Section 7 shall be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought. Accordingly, if any particular provision of this
Section 7 shall be adjudicated to be invalid or unenforceable, such provision shall be deemed amended to delete therefrom the portion thus adjudicated to be invalid or unenforceable. Such deletion shall apply only with respect to the operation of
such provisions of this Section 7 in the particular jurisdiction in which such adjudication is made. In addition, if the scope of any restriction contained in this Section 7 is too broad to permit enforcement thereof to its fullest extent, then such
restriction shall be enforced to the maximum extent permitted by law, and the Employee hereby consents and agrees that such scope may be judicially modified in any proceeding brought to enforce such restriction. 
  
 (e) Remedies. In the event of a breach or threatened
breach by the Employee of the provisions of this Section 7, Company shall be entitled to an injunction and such other equitable relief as may be necessary or desirable to enforce the restrictions contained herein. Nothing herein contained shall be
construed as prohibiting Company from pursuing any other remedies available for such breach or threatened breach or any other breach of this Agreement. 
  
 (f) PLX Exception. The parties hereto understand and acknowledge that Employee will serve in various capacities (including, without
limitation, stockholder, employee, executive officer and director) of PLX. Company acknowledges that no actions by Employee in any or all of his capacities with PLX shall be a violation of the provisions of this Section 7. 
  
 8. Non-exclusivity of Rights. Nothing in this Agreement shall prevent
or limit Employee’s continuing or future participation in any benefit, bonus, incentive or other plan or program provided by Company or any of its affiliated companies and for which Employee may qualify, nor shall anything herein limit or
otherwise adversely affect such rights as Employee may have under any stock option or other agreements with Company or any of its affiliated companies. 
  

 12 

 9. Assignability. The obligations of Employee hereunder are personal and may not be assigned or
delegated by him or transferred in any manner whatsoever, nor are such obligations subject to involuntary alienation, assignment or transfer, except by will or the laws of descent and distribution. 
  
 10. Notice. For the purpose of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when personally delivered, sent by overnight courier or by facsimile with confirmation of receipt or on the third business day after being
mailed by United States registered mail, return receipt requested, postage prepaid, addressed to Company at its principal office address and facsimile number, directed to the attention of the Board with a copy to the Secretary of Company, and to
Employee at Employee’s residence address and facsimile number on the records of Company or to such other address as either party may have furnished to the other in writing in accordance herewith except that notice of change of address shall be
effective only upon receipt. 
  
 11. Validity. 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. 
  
 12. Successors; Binding Agreement. 
  
 (a) Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and assets of Company (“Successor”) or any corporation which becomes the ultimate parent corporation of Company or any such Successor
(“Ultimate Parent”) to expressly assume and agree in writing satisfactory to the Employee to perform this Agreement in the same manner and to the same extent that Company would be required to perform it if no such succession had taken
place; provided, however, that express assumption shall not be required where this Agreement is assumed by operation of law. As used in this Agreement, including, without limitation, in Section 3, the term “Company” shall include any
Successor and Ultimate Parent which executes and delivers the Agreement as provided for in this Section 12 or which otherwise becomes bound by all terms and provisions of this Agreement by operation of law. If the Company fails to obtain a
satisfactory agreement from any successor to assume and perform this Agreement, Employee’s resignation within a one-year period immediately following the Change of Control shall be deemed to be a termination without Cause pursuant to Section
6(c)(iii). 
  
 (b) After the death or Disability
of Employee, this Agreement and all rights of Employee hereunder shall inure to the benefit of and be enforceable by Employee’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and
legatees. 
  
 13. Indemnification. During the Term and for
a period of six years thereafter, Company shall cause Employee to be covered by and named as an insured under any policy or contract of insurance obtained by it to insure its directors and officers against personal liability for acts or omissions in
connection with service as an officer or director of Company or service in other capacities at the request of Company. The coverage provided to Employee pursuant to this 

  

 13 

 
Section 13 shall be of a scope and on terms and conditions at least as favorable as the most favorable coverage provided to any other officer or director of
Company (or any successor). In addition, to the maximum extent permitted by the by-laws of Company in effect from time to time and applicable law, during the Term and for a period of six years thereafter, Company shall indemnify Employee against and
hold Employee harmless from any costs, liabilities, losses and exposures for Employee’s services as an employee, officer and director of Company (or any successor). 
  
 14. Withholding. Anything to the contrary notwithstanding, all payments required to be made by the Company hereunder
to the Employee, his spouse, his estate or beneficiaries, shall be subject to withholding of such amounts relating to taxes as the Company may reasonably determine it should withhold pursuant to any applicable law or regulation. In lieu of
withholding such amounts in whole or in part, the Company may, in its sole discretion, accept other provisions for payment of taxes as required by law, provided it is satisfied that all requirements of law affecting its responsibilities to withhold
such taxes have been satisfied. 
  
 15. Legal Fees. If
either party to this Agreement brings legal action to enforce the terms of this Agreement against another party to this Agreement, except as may otherwise be ordered by the court or other forum, each such party shall be liable for his or its own
expenses incurred in such legal action including costs of court or other forum and the fees and expenses of counsel; provided, however, the Company shall pay all of the Employee’s actual legal fees and expenses reasonably incurred by the
Employee in (i) any claim by the Employee following a Change in Control, or (ii) any successful claim against the Company or its successor in interest. 
  
 16. Miscellaneous. 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 Employee and such officer 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. This Agreement is an integration of the parties’ agreement: no agreement or
representations, 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. Employee represents and warrants that the execution of this
Agreement will not result in any breach of any prior or existing agreement executed by Employee with respect to any third party. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State
of Texas. 
  
 17. Counterparts. This Agreement may be
executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will constitute one and the same instrument. 
  
 18. Entire Agreement. This Agreement contains the entire understanding of the parties in respect of the subject matter and supersedes and replaces
in full all prior written or oral agreements and understandings between the parties with respect to such subject matters. 
  
 – SIGNATURE PAGE FOLLOWS – 
  

 14 

 IN WITNESS WHEREOF, the parties have executed this Agreement as of June 9, 2004, effective for all
purposes as provided above on the Effective Date. 
  

			
	PLAINS EXPLORATION & PRODUCTION COMPANY
		
	By:	 	 
	 	 	 John H. Lollar
 Chairman, Organization & Compensation Committee of
 the Board of
Directors

		
	By:	 	 
	 	 	 John F. Wombwell
 Executive Vice President and Secretary

	
	 EMPLOYEE

	
	 

  

 15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00069-of-00352.parquet"}]]