Document:

Exhibir 10.27

EMPLOYMENT
AGREEMENT

 

This Employment Agreement (the “Agreement”) is made and entered into by
and between VantageMed Corporation (the “Company”) and Philip D. Ranger (the
“Employee”).  The effective date of this
Agreement is the date the Agreement is approved by the Company’s Board of
Directors (the “Board”) (the “Effective Date”).

 

1.             Position and
Duties.  Employee will be employed
by the Company as its Chief Financial Officer, reporting to the Company’s Chief
Executive Officer.  Employee will also
have a dotted line reporting relationship to the Audit Committee of the
Board.  Employee accepts employment with
the Company on the terms and conditions set forth in this Agreement, and
Employee agrees to devote Employee’s full working time, energy and skill to
Employee’s duties at the Company and shall use his best efforts to perform his
duties.  These duties will include, but
not be limited to, those duties normally performed by a Chief Financial
Officer, as well as any other reasonable duties that may be assigned to
Employee from time to time.

 

2.             Term of
Employment.  Employee’s employment
with the Company started on May 19, 2003, and shall continue for a period of
three (3) years (the “Term”); provided, however, that the relationship may be
terminated by Employee or the Company pursuant to the provisions of Paragraphs
4 and 5 below.  Thereafter, subject to
the provisions for termination in Paragraph 4, this Agreement shall be extended
automatically for a term of one year (the “Renewal Term”), unless:  (a) the Company or the Employee gives
written termination notice to the other party at least thirty days prior to
either the termination of the initial Term of employment or any Renewal

 

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Term
established thereafter; or (b) the Company and the Employee agree to a mutually
acceptable date on which to terminate this agreement.

 

3.             Compensation.  Employee will be compensated by the Company
for Employee’s services as follows:

 

                (a)           Salary:  Employee will be paid an annual salary of
One Hundred Forty Thousand Dollars in U.S. currency ($140,000.00), less
applicable withholding, in accordance with the Company’s normal payroll
procedures.  Employee’s salary will be
reviewed by the Board of Directors (the “Board”) from time to time, but no less
frequently than annually, and may be subject to adjustment based upon various
factors including, but not limited to, Employee’s performance and the Company’s
profitability.  Any adjustment to
Employee’s salary shall be in the sole discretion of the Board.

 

(b)           Bonus:  Employee will be eligible to receive a bonus
consisting of cash, stock options or other monetary compensation based upon the
Company’s achievement of various financial and/or other goals established by
the Board.  The amount of the bonus will
be determined by the Board at its discretion and subject to the terms of the
management team bonus plan pertaining to senior executives as adopted by the
Board from time to time.  Unless
otherwise specified in writing, such bonus payments(s) shall not be deemed to
have been earned or accrued until all of the time and performance conditions
for the bonus are met by Employee.

 

(c)           Benefits:  Employee will have the right, on the same
basis as other senior executives of the Company, to participate in and to
receive benefits under any Company medical, life, long-term disability or other
group insurance plans, as well as under the Company’s business

 

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expense
reimbursement and other policies. 
Employee will accrue four (4) weeks paid vacation annually and shall be
compensated in accordance with the Company’s vacation policy.  Vacation shall be taken at a reasonable time
or times so as not to negatively impact the operations of the Company.  Employee may accrue a maximum of six weeks
vacation.  At that time, no further
vacation shall be earned until Employee has used some portion of his accrued
vacation, thereby reducing the total amount below the permitted maximum.

 

(d)           Stock Options:  Employee will be granted an option to
purchase 150,000 shares of the Company’s common stock under the Company’s 1998
Stock Option/Stock Issuance Plan, as amended and restated on November 22, 1999
(the “Stock Option Plan”) at an exercise price equal to the fair market value
of that stock on the Effective Date (the “Option”).  The Option will be governed by and subject to the terms and
conditions of the Company’s standard form of stock option agreement (which Employee
will be required to sign in connection with the issuance of the Option).

 

4.             Termination.  Employee’s employment hereunder shall
terminate upon the occurrence of any of the following events:

 

                (a)           Voluntary Resignation.  Employee’s voluntary resignation upon thirty
(30) days’ written notice.  The Company
may, in its sole discretion, elect to waive all or any part of such notice
period and accept Employee’s resignation at an earlier date;

 

                (b)           Death or Disability.  Employee’s death or disability (meaning that
Employee is unable to perform Employee’s duties for three or more consecutive
months or four

 

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or
more non-consecutive months in any one-year period as a result of a physical
and/or mental impairment);

 

                (c)           Termination with Cause.  The Company may terminate Employee’s
employment hereunder at any time prior to the end of the Term or any renewal
term for “Cause” as defined below.  For
purposes of this Agreement, a termination for “Cause” occurs upon the happening
of any of the following events:  (i)
Employee pleads guilty to, or is convicted of any felony that impairs
Employee’s ability to perform his duties under this Agreement;  (ii) Employee’s theft, dishonesty, fraud, or
the intentional falsification of any employment or Company records; (iii)
Employee intentionally discloses any of the Company’s confidential or
proprietary information or otherwise materially breaches the Company’s standard
form of employee confidentiality and assignment of inventions agreement; (iv)
failure of Employee to satisfactorily perform the duties of the office held by
the Employee as reasonably determined by the Board, and such failure is not
cured within thirty (30) days after the Employee receives notice thereof from
the Board; (v) a material breach of this Agreement or any other material
agreement between Employee and the Company which, if curable, is not cured
within thirty (30) days after Company provides Employee with written notice of
such breach;

 

                (d)           Termination without Cause. The
Company may terminate Employee’s employment hereunder at any time prior to the
end of the Term or any Renewal Term without Cause and for any reason;

 

                (e)           Termination for Good Reason.  This Agreement shall terminate at Employee’s
option under the following circumstances: (i) the Company’s failure to perform
or

 

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observe any of the material terms or provisions of this Agreement, and
the continued failure of the Company to cure such default within thirty (30)
days after written demand for performance has been give to the Company by the
Employee, which demand shall describe specifically the nature of such alleged
failure to perform or observe such material terms or provisions; (ii) a
material reduction in the scope of the Employee’s responsibilities and duties;
or (iii) in the absence of a written agreement between the Company and
Employee, a material reduction in Employee’s base pay or incentive
compensation.

 

Termination under this subparagraph (e) shall be effective upon the delivery
by Employee to the Company of a Notice of Intended Termination (the “Notice”)
at least fifteen (15) business days prior to termination by Employee.  The Notice shall state with particularity
the basis of such termination.  The
Company shall have fifteen (15) business days after receipt of such Notice to
remedy the facts and circumstances underlying the termination.  Employee shall make a good faith
determination immediately after such fifteen (15) day period whether such facts
and circumstances have been remedied and shall communicate Employee’s
determination in writing to the Company.

 

5.             Benefits upon
Termination.  Employee shall receive
the following benefits upon the termination of his employment hereunder
pursuant to the terms hereunder:

 

                (a)           In the event Employee’s employment is
terminated pursuant to paragraph 4 (a), (b), (c), or at the end of the Term or
any Renewal Term, Employee shall receive all compensation accrued under
Paragraph 3 which is unpaid as of the date of termination.

 

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Employee
shall not receive any other compensation from the Company other than that
earned under Paragraph 3 through the date of Employee’s termination.

 

(b)           In the event
Employee’s employment is terminated pursuant to paragraph 4(d) or (e) prior to
the end of the initial Term and any Renewal Term and if Employee signs a
general release of all claims, known and unknown, Employee may have against the
Company arising out of his employment or termination of employment, in a form
satisfactory to the Company, Employee shall receive the following:

 

                (i)  A severance payment equal to 12 months’
salary at Employee’s then current salary, less applicable withholding, in
accordance with the Company’s normal payroll schedule through the applicable
severance period.

 

                (ii)  In addition to the severance payment, the
Company shall pay the premiums to continue Employee’s group health insurance
coverage under COBRA for the period that Employee is receiving the severance
payment; provided, however, that from and after the first date that Employee
first commences other employment or provides services as a consultant or other
self-employed individual, the Company, at its option, may eliminate or
otherwise reduce payment of the COBRA premiums to the extent the Employee
receives health benefits from such other employment or self-employment.

 

                6.             Confidential and Proprietary Information.   As a condition of Employee’s employment,
Employee agrees to sign the Company’s standard form of employee confidentiality
and assignment of inventions agreement.

 

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7.             Dispute
Resolution.  Any dispute arising out
of, or relating to, the rights or obligations of the parties under this
Agreement shall be conclusively determined by binding arbitration.  The arbitration shall be conducted as
follows:

 

(a)  Binding Arbitration.  Any dispute between the parties shall be
submitted to, and conclusively determined by, binding arbitration in accordance
with this paragraph.  The provisions of
this paragraph shall not preclude any party from seeking injunctive or other
provisional or equitable relief in order to preserve the status quo of the
parties pending resolution of the dispute, and the filing of any action seeking
injunctive or other provisional relief shall not be construed as a waiver of
that party’s arbitration rights.  A
single arbitrator in accordance with the then-existing employment rules of the
American Arbitration Association shall conduct the arbitration.  The arbitrator, whose decision shall be
final and binding, shall be selected in accordance with the rules of the
American Arbitration Association.

 

(b)  Location of Arbitration.  Any arbitration hearing shall be conducted
in the county in which venue would be proper for an initiation of a civil
action arising out of the dispute.

 

(c)  Applicable Law.  The arbitration of any dispute shall be
governed by the California Arbitration Act (California Code of Civil
Procedure  § 1280, et  seq.)
and minimum due process requirements established by the California Supreme
Court in Armendariz
v. Foundation Health Psychcare Services, Inc., 24 Cal.4th 83 (2000).

 

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(d)  Limitation on Scope of
Arbitrator’s Award or Decision.  The
parties to this Agreement agree that if the arbitrator finds any disputed claim
to be meritorious, the arbitrator shall have the authority to order legal
and/or equitable relief appropriate to the claim.

 

(e)  Attorney’s Fees.  Each party shall initially bear its/his own
attorney’s fees.  However, the parties
to this Agreement agree that the arbitrator, in his or her discretion, may
award to the prevailing party the reasonable attorney’s fees incurred by the
party in participating in the arbitration process.

 

8.             Representation
by Counsel.  The parties have
carefully read this Agreement and the contents hereof are known and understood
by all parties.  The parties have each
had the opportunity to receive independent legal advice from attorneys of their
choice with respect to the advisability of executing this Agreement.  The parties acknowledge that they have
executed this Agreement after independent investigation and without fraud,
duress, or undue influence.

 

9.             Notices.  For purposes of this Agreement, notices and
other communications provided for in this Agreement shall be in writing and
shall be delivered personally or sent by United States certified mail, return
receipt requested, postage prepaid, addressed as follows:

 

	
  If
  to Employee:

  
	
   

  	
  Philip
  D. Ranger

  
	
   

  
	
  If
  to Company:

  
	
   

  
	
   

  	
  Chairman
  of the Audit Committee

  
	
   

  	
  VantageMed
  Corporation

  
	
   

  	
  3017
  Kilgore Road

  
	
   

  	
  Suite
  180

  
	
   

  	
  Rancho
  Cordova, CA  95670

  
			

 

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10.           Severability.  If any provision of this Agreement is deemed
invalid, illegal or unenforceable, such provision shall be modified so as to
make it valid, legal and enforceable, and the validity, legality and
enforceability of the remaining provisions of this Agreement shall not in any
way be affected.

 

11.           Assignment.   In view of the personal nature of the
services to be performed under this Agreement by Employee, Employee cannot
assign or transfer any of Employee’s obligations under this Agreement.

 

12.           Entire Agreement.   This Agreement and the agreements referred
to above constitute the entire agreement between Employee and the Company
regarding the terms and conditions of Employee’s employment, and they supersede
all prior negotiations, representations or agreements between Employee and the
Company regarding Employee’s employment, whether written or oral.

 

13.           Modification.   This Agreement may only be modified or
amended by a supplemental written agreement signed by Employee and an
authorized representative of the Company.

 

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date and year written below.

 

	
   

  	
  VantageMed Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  /s/ Richard M. Brooks

  
	
  Date:  May 20, 2003

  	
  Its:  CEO

  
	
   

  	
   

  
	
  Date: May 20, 2003

  	
  Philip D. Ranger

  
	
   

  	
  /s/ Philip D. Ranger

  

 

10Exhibit
10.1

 

NOBLE
ENERGY, INC.

 

1992
STOCK OPTION AND RESTRICTED STOCK PLAN

 

(As
Amended Through July 22, 2003)

 

Section 1.  Purpose

 

The purpose of this Plan is to assist Noble Energy,
Inc., a Delaware corporation formerly known as Noble Affiliates, Inc., in
attracting and retaining, as officers and key employees of the Company and its
Affiliates, persons of training, experience and ability and to furnish
additional incentive to such persons by encouraging them to become owners of
Shares of the Company’s capital stock, by granting to such persons Incentive
Options, Nonqualified Options, Restricted Stock, or any combination of the
foregoing.

 

Section 2.  Definitions

 

Unless the context
otherwise requires, the following words as used herein shall have the following
meanings:

 

(a)                                  “Affiliate”
means any corporation (other than the Company) in any unbroken chain of
corporations (i) beginning with the Company if, at the time of the granting of
the Option or award of Restricted Stock, each of the corporations other than
the last corporation in the unbroken chain owns stock possessing 50 percent or
more of the total combined voting power of all classes of stock in one of the
other corporations in such chain, or (ii) ending with the Company if, at the
time of the granting of the Option or award of Restricted Stock, each of the
corporations, other than the Company, owns stock possessing 50 percent or more
of the total combined voting power of all classes of stock in one of the other
corporations in such chain.

 

(b)                                 “Agreement”
means the written agreement (i) between the Company and the Optionee evidencing
the Option and any SARs that relate to such Option granted by the Company and
the understanding of the parties with respect thereto or (ii) between the
Company and a recipient of Restricted Stock evidencing the restrictions, terms
and conditions applicable to such award of Restricted Stock and the
understanding of the parties with respect thereto.

 

(c)                                  “Board”
means the Board of Directors of the Company as the same may be constituted from
time to time.

 

(d)                                 “Code”
means the Internal Revenue Code of 1986, as amended.

 

(e)                                  “Committee”
means the Committee provided for in Section 3 of the Plan as the same may be
constituted from time to time.

 

(f)                                    “Company”
means Noble Energy, Inc., a Delaware corporation.

 

(g)                                 “Corporate
Transaction” shall have the meaning as defined in Section 8 of the Plan.

 

(h)                                 “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

(i)                                     “Fair
Market Value” means the fair market value per Share as determined by the
Committee in good faith; provided, however, that if a Share is listed or
admitted to trading on a securities exchange registered under the Exchange Act,
the Fair Market Value per Share shall be the average of the reported high and
low sales price on the date in question (or if there was no reported sale on
such date, on

 

 

the last preceding date on which any reported sale
occurred) on the principal securities exchange on which such Share is listed or
admitted to trading, or if a Share is not listed or admitted to trading on any
such exchange but is listed as a national market security on the National
Association of Securities Dealers, Inc. Automated Quotations System (“NASDAQ”)
or any similar system then in use, the Fair Market Value per Share shall be the
average of the reported high and low sales price on the date in question (or if
there was no reported sale on such date, on the last preceding date on which
any reported sale occurred) on such system, or if a Share is not listed or
admitted to trading on any such exchange and is not listed as a national market
security on NASDAQ but is quoted on NASDAQ or any similar system then in use,
the Fair Market Value per Share shall be the average of the closing high bid
and low asked quotations on such system for such Share on the date in
question.  For purposes of valuing
Shares to be made subject to Incentive Options, the Fair Market Value per Share
shall be determined without regard to any restriction other than one which, by
its terms, will never lapse.

 

(j)                                     “Incentive
Option” means an Option that is intended to satisfy the requirements of Section
422(b) of the Code and Section 17 of the Plan.

 

(k)                                  “Nonqualified
Option” means an Option that does not qualify as a statutory stock option under
Section 422 or 423 of the Code.

 

(l)                                     “Non-Employee
Director” means a director of the Company who satisfies the definition thereof
under Rule 16b-3 promulgated under the Exchange Act.

 

(m)                               “Option”
means an option to purchase one or more Shares granted under and pursuant to
the Plan.  Such Option may be either an
Incentive Option or a Nonqualified Option.

 

(n)                                 “Optionee”
means a person who has been granted an Option and who has executed an Agreement
with the Company.

 

(o)                                 “Outside
Director” means a director of the Company who is an outside director within the
meaning of Section 162(m) of the Code and the regulations promulgated
thereunder.

 

(p)                                 “Plan”
means this Noble Energy, Inc. 1992 Stock Option and Restricted Stock Plan, as
amended from time to time.

 

(q)                                 “Restricted
Stock” means Shares issued or transferred pursuant to Section 20 of the Plan.

 

(r)                                    “Retirement”
means a termination of employment with the Company or an Affiliate either
(i) on a voluntary basis by a person who (A) is at least 55 years of age
with five years of credited service with the Company or one or more Affiliates
or (B) has at least 20 years of credited service with the Company or one or
more Affiliates, immediately prior to such termination of employment or (ii)
otherwise with the written consent of the Committee in its sole discretion.

 

(s)                                  “SARs”
means stock appreciation rights granted pursuant to Section 7 of the Plan.

 

(t)                                    “Securities
Act” means the Securities Act of 1933, as amended.

 

(u)                                 “Share”
means a share of the Company’s present common stock, par value $3.33-1/3 per
share, and any share or shares of capital stock or other securities of the
Company hereafter issued or issuable in respect of or in substitution or
exchange for each such present share. 
Such Shares may be unissued or reacquired Shares, as the Board, in its
sole and absolute discretion, shall from time to time determine.

 

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Section 3.  Administration

 

The Plan shall be administered by, and the decisions
concerning the Plan shall be made solely by, a Committee of two or more
directors of the Company, all of whom are (a) Non-Employee Directors, and (b)
not later than immediately after the first meeting of stockholders of the
Company at which its directors are elected that occurs after December 31,
1996, Outside Directors.   Each member
of the Committee shall be appointed by and shall serve at the pleasure of the
Board.  The Board shall have the sole
continuing authority to appoint members of the Committee.  In making grants or awards, the Committee
shall take into consideration the contribution the person has made or may make
to the success of the Company or its Affiliates and such other considerations
as the Board may from time to time specify.

 

The Committee shall elect
one of its members as its chairman and shall hold its meetings at such times
and places as it may determine.  A
majority of the members of the Committee shall constitute a quorum.  All decisions and determinations of the
Committee shall be made by the majority vote or decision of the members present
at any meeting at which a quorum is present; provided, however, that any
decision or determination reduced to writing and signed by all members of the
Committee shall be as fully effective as if it had been made by a majority vote
or decision at a meeting duly called and held. 
The Committee may appoint a secretary (who need not be a member of the
Committee) who shall keep minutes of its meetings.  The Committee may make any rules and regulations for the conduct
of its business that are not inconsistent with the express provisions of the
Plan, the bylaws or certificate of incorporation of the Company or any
resolutions of the Board.

 

All questions of
interpretation or application of the Plan, or of a grant of an Option and any
SARs that relate to such Option or an award of Restricted Stock, including
questions of interpretation or application of an Agreement, shall be subject to
the determination of the Committee, which determination shall be final and binding
upon all parties.

 

Subject to the express
provisions of the Plan, the Committee shall have the authority, in its sole and
absolute discretion, (a) to adopt, amend or rescind administrative and
interpretive rules and regulations relating to the Plan; (b) to construe the
Plan; (c) to make all other determinations necessary or advisable for
administering the Plan; (d) to determine the terms and provisions of the
respective Agreements (which need not be identical), including provisions
defining or otherwise relating to (i) the term and the period or periods and
extent of exercisability of the Options, (ii) the extent to which the
transferability of Shares issued upon exercise of Options or any SARs that
relate to such Options is restricted, (iii) the effect of termination of
employment upon the exercisability of the Options, and (iv) the effect of
approved leaves of absence (consistent with any applicable regulations of the
Internal Revenue Service) upon the exercisability of such Options; (e) subject
to Sections 9 and 11 of the Plan, to accelerate, for any reason, regardless of
whether the Agreement so provides, the time of exercisability of any Option and
any SARs that relate to such Option that have been granted or the time of the
lapsing of restrictions on Restricted Stock; (f) to construe the respective
Agreements; and (g) to exercise the powers conferred on the Committee under the
Plan.  The Board may correct any defect
or supply any omission or reconcile any inconsistency in the Plan in the manner
and to the extent it shall deem expedient to carry it into effect, and it shall
be the sole and final judge of such expediency.  The determinations of the Committee or Board, as the case may be,
on the matters referred to in this Section 3 shall be final and conclusive.

 

Section 4.  Shares Subject to the Plan

 

(a)                                  The
total number of Shares that may be purchased pursuant to Options, issued or
transferred pursuant to the exercise of SARs or awarded as Restricted Stock
shall not exceed a maximum of 9,250,000 in the aggregate, and the total number
of shares for which Options and SARs may be granted, and which may be awarded
as Restricted Stock, to any one person during a calendar year is 200,000 in the
aggregate; provided that each such maximum number of Shares shall be increased
or decreased as provided in Section 13 of the Plan.

 

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(b)                                 At
any time and from time to time after the Plan takes effect, the Committee,
pursuant to the provisions herein set forth, may grant Options and any SARs
that relate to such Options and award Restricted Stock until the maximum number
of Shares shall be exhausted or the Plan shall be sooner terminated; provided,
however, that no Incentive Option and any SARs that relate to such Option shall
be granted after December 9, 2006.

 

(c)                                  Shares
subject to an Option that expires or terminates prior to exercise and Shares
that had been previously awarded as Restricted Stock that have since been
forfeited shall be available for further grant of Options or award as
Restricted Stock.  No Option shall be
granted and no Restricted Stock shall be awarded if the number of Shares for
which Options have been granted and which pursuant to this Section are not
again available for Option grant, plus the number of Shares that have been
awarded as Restricted Stock, would, if such Option were granted or such
Restricted Stock were awarded, exceed 9,250,000.

 

(d)                                 Any
Shares withheld pursuant to Section 19(c) of the Plan shall not be available
after such withholding for being optioned or awarded pursuant to the provisions
hereof.

 

(e)                                  Unless
the Shares awarded as Restricted Stock are Shares that have been reacquired by
the Company as treasury shares, Restricted Stock shall be awarded only for
services actually rendered, as determined by the Committee.

 

Section 5.  Eligibility

 

The persons who shall be
eligible to receive grants of Options and any SARs that relate to such Options,
and to receive awards of Restricted Stock, shall be regular salaried officers
or other employees of the Company or one or more of its Affiliates.

 

Section 6.  Grant of Options

 

(a)                                  From
time to time while the Plan is in effect, the Committee may, in its sole and
absolute discretion, select from among the persons eligible to receive a grant
of Options under the Plan (including persons who have already received such
grants of Options) such one or more of them as in the opinion of the Committee
should be granted Options.  The
Committee shall thereupon, likewise in its sole and absolute discretion, determine
the number of Shares to be allotted for option to each person so selected.

 

(b)                                 Each
person so selected shall be offered an Option to purchase the number of Shares
so allotted to him, upon such terms and conditions, consistent with the
provisions of the Plan, as the Committee may specify.  Each such person shall have a reasonable period of time, to be
fixed by the Committee, within which to accept or reject the proffered Option.  Failure to accept within the period so fixed
may be treated as a rejection.

 

(c)                                  Each
person who accepts an Option offered to him shall enter into an Agreement with
the Company, in such form as the Committee may prescribe, setting forth the
terms and conditions of the Option, whereupon such person shall become a
participant in the Plan.  In the event a
person is granted both one or more Incentive Options and one or more
Nonqualified Options, such grants shall be evidenced by separate Agreements,
one for each Incentive Option grant and one for each Nonqualified Option grant.  The date on which the Committee completes
all action constituting an offer of an Option to a person, including the
specification of the number of Shares to be subject to the Option, shall
constitute the date on which the Option covered by such Agreement is
granted.  In no event, however, shall an
Optionee gain any rights in addition to those specified by the Committee in its
grant, regardless of the time that may pass between the grant of the Option and
the actual signing of the Agreement by the Company and the Optionee.

 

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(d)                                 Each
Agreement that includes SARs in addition to an Option shall comply with the
provisions of Section 7 of the Plan.

 

Section 7.  Grant of SARs

 

The Committee may from
time to time grant SARs in conjunction with all or any portion of any Option
either (i) at the time of the initial Option grant (not including any
subsequent modification that may be treated as a new grant of an Incentive
Option for purposes of Section 424(h) of the Code) or (ii) with respect to
Nonqualified Options, at any time after the initial Option grant while the
Nonqualified Option is still outstanding. 
SARs shall not be granted other than in conjunction with an Option granted
hereunder.

 

SARs granted hereunder shall
comply with the following conditions and also with the terms of the Agreement
governing the Option in conjunction with which they are granted:

 

(a)                                  The
SAR shall expire no later than the expiration of the underlying Option.

 

(b)                                 Upon
the exercise of an SAR, the Optionee shall be entitled to receive payment equal
to the excess of the aggregate Fair Market Value of the Shares with respect to
which the SAR is then being exercised (determined as of the date of such
exercise) over the aggregate purchase price of such Shares as provided in the
related Option.  Payment may be made in
Shares, valued at their Fair Market Value on the date of exercise, or in cash,
or partly in Shares and partly in cash, as determined by the Committee in its
sole and absolute discretion.

 

(c)                                  SARs
shall be exercisable (i) only at such time or times and only to the extent that
the Option to which they relate shall be exercisable, (ii) only when the Fair
Market Value of the Shares subject to the related Option exceeds the purchase price
of the Shares as provided in the related Option, and (iii) only upon
surrender of the related Option or any portion thereof with respect to the
Shares for which the SARs are then being exercised.

 

(d)                                 Upon
exercise of an SAR, a corresponding number of Shares subject to option under
the related Option shall be canceled. 
Such canceled Shares shall be charged against the Shares reserved for
the Plan, as provided in Section 4 of the Plan, as if the Option had been exercised
to such extent and shall not be available for future Option grants or
Restricted Stock awards hereunder.

 

Section 8.  Option Price

 

The option price for each
Share covered by an Incentive Option shall not be less than the greater of (a)
the par value of such Share or (b) the Fair Market Value of such Share at the
time such Option is granted.  The option
price for each Share covered by a Nonqualified Option shall not be less than
the greater of (a) the par value of such Share or (b) 100 percent of the
Fair Market Value of such Share at the time the Option is granted.  Notwithstanding the two immediately
preceding sentences, if the Company or an Affiliate agrees to substitute a new
Option under the Plan for an old Option, or to assume an old Option, by reason
of a corporate merger, consolidation, acquisition of property or stock,
separation, reorganization, or liquidation (any of such events being referred
to herein as a “Corporate Transaction”), the option price of the Shares covered
by each such new Option or assumed Option may be other than the Fair Market
Value of the Shares at the time the Option is granted as determined by
reference to a formula, established at the time of the Corporate Transaction,
which will give effect to such substitution or assumption; provided, however,
in no event shall:

 

(a)                                  the
excess of the aggregate Fair Market Value of the Shares subject to the Option
immediately after the substitution or assumption over the aggregate option
price of such Shares be more than the excess of the aggregate Fair Market Value
of all Shares subject to the Option immediately prior to the substitution or
assumption over the aggregate option price of such Shares;

 

5

 

(b)                                 in
the case of an Incentive Option, the new Option or the assumption of the old
Option give the Optionee additional benefits that he would not have under the
old Option; or

 

(c)                                  the
ratio of the option price to the Fair Market Value of the stock subject to the
Option immediately after the substitution or assumption be more favorable to
the Optionee than the ratio of the option price to the Fair Market Value of the
stock subject to the old Option immediately prior to such substitution or
assumption, on a Share by Share basis.

 

Notwithstanding the
above, the provisions of this Section 8 with respect to the option price in the
event of a Corporate Transaction shall, in the case of an Incentive Option, be
subject to the requirements of Section 424(a) of the Code and the Treasury
regulations and revenue rulings promulgated thereunder.  In the case of an Incentive Option, in the
event of a conflict between the terms of this Section 8 and the above cited
statute, regulations and rulings, or in the event of an omission in this
Section 8 of a provision required by said laws, the latter shall control in all
respects and are hereby incorporated herein by reference as if set out at
length.

 

Section 9.  Option Period and Terms of Exercise

 

(a)                                  Each
Option shall be exercisable during such period of time as the Committee may
specify, but in no event for longer than 10 years from the date when the Option
is granted; provided, however, that

 

(i)                                     All
rights to exercise an Option and any SARs that relate to such Option shall,
subject to the provisions of subsection (c) of this Section 9, terminate one
year after the date the Optionee ceases to be employed by at least one of the
employers in the group of employers consisting of the Company and its
Affiliates, for any reason other than death, becoming disabled (within the
meaning of Section 22(e)(3) of the Code) or Retirement, except that, in the
event of the termination of employment of the Optionee on account of (a) fraud
or intentional misrepresentation, or (b) embezzlement, misappropriation or
conversion of assets or opportunities of the Company or its Affiliates, the
Option and any SARs that relate to such Option shall thereafter be null and
void for all purposes.  Employment shall
not be deemed to have ceased by reason of the transfer of employment, without
interruption of service, between or among the Company and any of its
Affiliates.

 

(ii)                                  If
the Optionee ceases to be employed by at least one of the employers in the
group of employers consisting of the Company and its Affiliates, by reason of
his death, becoming disabled (within the meaning of Section 22(e)(3) of the
Code) or Retirement, all rights to exercise such Option and any SARs that
relate to such Option shall, subject to the provisions of subsection (c) of
this Section 9, terminate five years thereafter.

 

(b)                                 If
an Option is granted with a term shorter than 10 years, the Committee may
extend the term of the Option and any SARs that relate to such Option, but for
not more than 10 years from the date when the Option was originally granted.

 

(c)                                  In
no event may an Option or any SARs that relate to such Option be exercised
after the expiration of the term thereof.

 

Section 10.  Transferability of Options and SARs

 

Except
as provided in this Section 10, no Option or any SARs that relate to an Option
shall be (i) transferable otherwise than by will or the laws of descent
and distribution, or (ii) exercisable during the lifetime of the Optionee by
anyone other than the Optionee.  A
Nonqualified Option granted to an Optionee, and any SARs

 

6

 

that relate to such
Nonqualified Option, may be transferred by such Optionee to a permitted
transferee (as defined below), provided that (i) there is no consideration for
such transfer (other than receipt by the Optionee of interests in an entity
that is a permitted transferee); (ii) the Optionee (or such Optionee’s estate
or representative) shall remain obligated to satisfy all income or other tax
withholding obligations associated with the exercise of such Nonqualified
Option or SARs; (iii) the Optionee shall notify the Company in writing that
such transfer has occurred and disclose to the Company the name and address of
the permitted transferee and the relationship of the permitted transferee to
the Optionee; and (iv) such transfer shall be effected pursuant to transfer
documents in a form approved by the Committee. 
A permitted transferee may not further assign or transfer any such
transferred Nonqualified Option or any SARs that relate to such Nonqualified
Option otherwise than by will or the laws of descent and distribution.  Following the transfer of an Nonqualified
Option and any SARs that relate to such Nonqualified Option to a permitted
transferee, such Nonqualified Option and SARs shall continue to be subject to
the same terms and conditions that applied to them prior to their transfer by
the Optionee, except that they shall be exercisable by the permitted transferee
to whom such transfer was made rather than by the transferring Optionee.  For the purposes of the Plan, the term
“permitted transferee” means, with respect to an Optionee, (i) any child,
stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse,
sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law or sister-in-law of the Optionee, including
adoptive relationships, (ii) any person sharing the Optionee’s household (other
than a tenant or an employee), (iii) a trust in which the persons described in
clauses (i) and (ii) above have more than fifty percent of the beneficial
interest, (iv) a foundation in which the Optionee and/or persons described in
clauses (i) and (ii) above control the management of assets, and (v) any
other entity in which the Optionee and/or persons described in clauses (i) and
(ii) above own more than fifty percent of the voting interests.

 

Section 11.  Exercise of Options and SARs

 

(a)                                  In
the event of an Optionee’s death, any then exercisable portion of an Option
that has been granted to such Optionee, and any SARs that relate to such
Option, may be exercised, within the period ending with the earlier of the
fifth anniversary of the date of the Optionee’s death or the date of the
termination of such Option, by the duly authorized representative of the
deceased Optionee’s estate or the permitted transferee to whom such Option and
SARs have been transferred.

 

(b)                                 At
any time, and from time to time, during the period when any Option and any SARs
that relate to such Option, or a portion thereof, are exercisable, such Option
or SARs, or portion thereof, may be exercised in whole or in part; provided,
however, that the Committee may require any Option or SAR that is partially
exercised to be so exercised with respect to at least a stated minimum number
of Shares.

 

(c)                                  Each
exercise of an Option, or a portion thereof, shall be evidenced by a notice in
writing to the Company accompanied by payment in full of the option price of
the Shares then being purchased. 
Payment in full shall mean payment of the full amount due:  (i) in cash, (ii) by certified check or
cashier’s check, (iii) with Shares owned by the exercising Optionee or
permitted transferee having a Fair Market Value at least equal to the aggregate
option price payable in connection with such exercise, but only to the extent
that such Shares are “mature” as determined by the Corporation in accordance
with generally accepted accounting principles, or (iv) by any combination of
clauses (i) through (iii).  If the
exercising Optionee or permitted transferee chooses to remit Shares in payment
of all or any portion of the option price, then (for purposes of payment of the
option price) those Shares shall be deemed to have a cash value equal to their
aggregate Fair Market Value determined as of the date the exercising Optionee
or permitted transferee exercises such Option.

 

Notwithstanding
anything contained herein to the contrary, at the request of an exercising
Optionee or permitted transferee and to the extent permitted by applicable law,
the Committee shall approve arrangements with a brokerage firm or firms under
which any such brokerage firm shall, on behalf of the exercising Optionee or
permitted transferee, make payment in full to the Company of the option

 

7

 

price of the Shares then
being purchased, and the Company, pursuant to an irrevocable notice in writing
from the exercising Optionee or permitted transferee, shall make prompt
delivery of one or more certificates for the appropriate number of Shares to
such brokerage firm.  Payment in full
for purposes of the immediately preceding sentence shall mean payment of the
full amount due, either in cash or by certified check or cashier’s check.

 

(d)                                 Each
exercise of SARs, or a portion thereof, shall be evidenced by a notice in
writing to the Company.

 

(e)                                  No
Shares shall be issued upon exercise of an Option until full payment therefor
has been made, and an exercising Optionee or permitted transferee shall have
none of the rights of a shareholder until Shares are issued to him.

 

(f)                                    Nothing
herein or in any Agreement shall require the Company to issue any Shares upon
exercise of an Option or SAR if such issuance would, in the opinion of counsel
for the Company, constitute a violation of the Securities Act or any similar or
superseding statute or statutes, or any other applicable statute or regulation,
as then in effect.  Upon the exercise of
an Option or SAR (as a result of which the exercising Optionee or permitted
transferee receives Shares), or portion thereof, the exercising Optionee or
permitted transferee shall give to the Company satisfactory evidence that he is
acquiring such Shares for the purposes of investment only and not with a view
to their distribution; provided, however, if or to the extent that the Shares
delivered to the exercising Optionee or permitted transferee shall be included
in a registration statement filed by the Company under the Securities Act, such
investment representation shall be abrogated.

 

Section 12.  Delivery of Stock Certificates

 

As promptly as may be
practicable after an Option or SAR (as a result of the exercise of which the
exercising Optionee or permitted transferee receives Shares), or a portion
thereof, has been exercised as hereinabove provided, the Company shall make
delivery of one or more certificates for the appropriate number of Shares.  In the event that an Optionee exercises both
(i) an Incentive Option or SARs that relate to such Option (as a result of
which the Optionee receives Shares), or a portion thereof, and (ii) a
Nonqualified Option or SARs that relate to such Option (as a result of which
the Optionee receives Shares), or a portion thereof, separate stock
certificates shall be issued, one for the Shares subject to the Incentive
Option and one for the Shares subject to the Nonqualified Option.

 

Section 13.  Changes in Company’s Shares and Certain Corporate Transactions

 

If at any time while the
Plan is in effect there shall be any increase or decrease in the number of
issued and outstanding Shares of the Company effected without receipt of
consideration therefor by the Company, through the declaration of a stock
dividend or through any recapitalization or merger or otherwise in which the
Company is the surviving corporation, resulting in a stock split-up,
combination or exchange of Shares of the Company, then and in each such event:

 

(a)                                  An
appropriate adjustment shall be made in the maximum number of Shares then
subject to being optioned or awarded as Restricted Stock under the Plan, to the
end that the same proportion of the Company’s issued and outstanding Shares
shall continue to be subject to being so optioned and awarded;

 

(b)                                 Appropriate
adjustment shall be made in the number of Shares and the option price per Share
thereof then subject to purchase pursuant to each Option previously granted and
then outstanding, to the end that the same proportion of the Company’s issued
and outstanding Shares in each such instance shall remain subject to purchase
at the same aggregate option price; and

 

8

 

(c)                                  In
the case of Incentive Options, any such adjustments shall in all respects
satisfy the requirements of Section 424(a) of the Code and the Treasury
regulations and revenue rulings promulgated thereunder.

 

Except as is otherwise expressly provided herein, the
issue by the Company of shares of its capital stock of any class, or securities
convertible into shares of capital stock of any class, either in connection
with a direct sale or upon the exercise of rights or warrants to subscribe
therefor, or upon conversion of shares or obligations of the Company
convertible into such shares or other securities, shall not affect, and no
adjustment by reason thereof shall be made with respect to, the number of or
option price of Shares then subject to outstanding Options granted under the
Plan.  Furthermore, the presence of
outstanding Options granted under the Plan shall not affect in any manner the
right or power of the Company to make, authorize or consummate (i) any or all
adjustments, recapitalizations, reorganizations or other changes in the Company’s
capital structure or its business; (ii) any merger or consolidation of the
Company; (iii) any issue by the Company of debt securities or preferred stock
that would rank above the Shares subject to outstanding Options granted under
the Plan; (iv) the dissolution or liquidation of the Company; (v) any
sale, transfer or assignment of all or any part of the assets or business of
the Company; or (vi) any other corporate act or proceeding, whether of a
similar character or otherwise.

 

Section 14.  Effective Date

 

The Plan was originally
adopted by the Board on January 28, 1992, and approved by the stockholders
of the Company on April 28, 1992. 
The Plan was amended and restated on December 10, 1996, and was approved
by the stockholders of the Company on April 22, 1997.  The Plan was amended and restated on
February 1, 2000, and was approved by the stockholders of the Company on
April 25, 2000.  The Plan as
amended and restated through January 29, 2002, was approved and adopted by
the Board on January 29, 2002, to be effective as of that date.  The Plan was amended by the Board on
January 27, 2003, and was approved by the stockholders of the Company on
April 29, 2003.  The Plan was
amended by the Board on July 22, 2003, to be effective as of that date.

 

Section 15.  Amendment, Suspension or Termination

 

The Board may at any time
amend, suspend or terminate the Plan; provided, however, that after the
shareholders have approved and ratified the Plan in accordance with Section 14
of the Plan, the Board may not, without approval of the shareholders of the
Company, amend the Plan so as to (a) increase the maximum number of Shares
subject thereto, as specified in Sections 4(a) and 13 of the Plan, (b) reduce
the option price for Shares covered by Options granted hereunder below the
price specified in Section 8 of the Plan or (c) permit the “repricing” of
Options and any SARs that relate to such new Options in contravention of
Section 18 of the Plan; and provided further, that the Board may not modify,
impair or cancel any outstanding Option or SAR that relates to such Option, or
the restrictions, terms or conditions applicable to Shares of Restricted Stock,
without the consent of the holder thereof.

 

Section 16.  Requirements of Law

 

Notwithstanding anything
contained herein or in any Agreement to the contrary, the Company shall not be
required to sell or issue Shares under any Option or SAR if the issuance
thereof would constitute a violation by the Optionee or the Company of any
provision of any law or regulation of any governmental authority or any
national securities exchange; and as a condition of any sale or issuance of
Shares upon exercise of an Option or SAR, the Company may require such
agreements or undertakings, if any, as the Company may deem necessary or advisable
to assure compliance with any such law or regulation.

 

9

 

Section 17.  Incentive Options

 

The Committee may, in its
sole and absolute discretion, designate any Option granted under the Plan as an
Incentive Option intended to qualify under Section 422(b) of the Code.  Any provision of the Plan to the contrary
notwithstanding, (a) no Incentive Option shall be granted to any person who, at
the time such Incentive Option is granted, owns stock possessing more than 10
percent of the total combined voting power of all classes of stock of the
Company or any Affiliate unless the option price under such Incentive Option is
at least 110 percent of the Fair Market Value of the Shares subject to the
Incentive Option at the date of its grant and such Incentive Option is not
exercisable after the expiration of five years from the date of its grant; and
(b) the aggregate Fair Market Value of the Shares subject to an Incentive
Option and the aggregate Fair Market Value of the shares of stock of the
Company or any Affiliate (or a predecessor corporation of the Company or an
Affiliate) subject to any other incentive stock option (within the meaning of
Section 422(b) of the Code) of the Company and its Affiliates (or a predecessor
corporation of any such corporation), that may become first exercisable in any
calendar year, shall not (with respect to any Optionee) exceed $100,000,
determined as of the date the Incentive Option is granted.

 

Section 18.  Modification of Options and SARs

 

Subject to the terms and
conditions of and within the limitations of the Plan, the Committee may modify,
extend or renew outstanding Options and any SARs that relate to such Options
granted under the Plan.  The Committee
shall not have authority to accept the surrender or cancellation of any Options
and any SARs that relate to such Options outstanding hereunder (to the extent
not theretofore exercised) and grant new Options and any SARs that relate to
such new Options hereunder in substitution therefor (to the extent not
theretofore exercised) at an Option Price that is less than the Option Price of
the Options surrendered or canceled. 
Notwithstanding the foregoing provisions of this Section 18, no modification
of an outstanding Option and any SARs that relate to such Option granted
hereunder shall, without the consent of the Optionee, alter or impair any
rights or obligations under any Option and any SARs that relate to such Option
theretofore granted hereunder to such Optionee, except as may be necessary,
with respect to Incentive Options, to satisfy the requirements of Section
422(b) of the Code.

 

Section 19.  Agreement Provisions

 

(a)                                  Each
Agreement shall contain such provisions (including, without limitation,
restrictions or the removal of restrictions upon the exercise of the Option and
any SARs that relate to such Option and the transfer of shares thereby
acquired) as the Committee shall deem advisable.  Each Agreement relating to an Option shall identify the Option
evidenced thereby as an Incentive Option or Nonqualified Option, as the case
may be.  Incentive Options and
Nonqualified Options may not both be covered by a single Agreement.  Each such Agreement relating to Incentive
Options shall contain such limitations and restrictions upon the exercise of
the Incentive Option as shall be necessary for the Incentive Option to which
such Agreement relates to constitute an incentive stock option, as defined in
Section 422(b) of the Code.

 

(b)                                 Each
Agreement shall recite that it is subject to the Plan and that the Plan shall
govern where there is any inconsistency between the Plan and the Agreement.

 

(c)                                  Each
Agreement shall contain a covenant by the Optionee, in such form as the
Committee may require in its discretion, that he consents to and will take
whatever affirmative actions are required, in the opinion of the Committee, to
enable the Company or appropriate Affiliate to satisfy its Federal income tax
and FICA and any applicable state and local withholding obligations incurred as
a result of such Optionee’s (or his permitted transferee’s) exercise of an
Option granted to such Optionee or any SARs that relate to such Option.  Upon the exercise of an Option or SARs
requiring tax withholding, an exercising Optionee or permitted transferee may
(i) direct the Company to withhold from the Shares to be issued to the
exercising Optionee or permitted transferee the number of Shares (based upon
the aggregate Fair Market Value of the Shares at the date of exercise)
necessary to satisfy the Company’s

 

10

 

obligation to withhold
taxes, (ii) deliver to the Company sufficient Shares (based upon the aggregate
Fair Market Value of the Shares at the date of exercise) to satisfy the
Company’s tax withholding obligations, (iii) deliver sufficient cash to the
Company to satisfy the Company’s tax withholding obligations, or (iv) any
combination of clauses (i) through (iii). 
In the event the Committee subsequently determines that the aggregate
Fair Market Value (as determined above) of any Shares withheld as payment of
any tax withholding obligation is insufficient to discharge that tax
withholding obligation, then the Optionee to whom the Option and SARs in
question were granted shall pay (or cause the permitted transferee to whom such
Option and SARs were transferred to pay) to the Company, immediately upon the
Committee’s request, the amount of that deficiency.

 

(d)                                 Each
Agreement relating to an Incentive Option shall contain a covenant by the
Optionee immediately to notify the Company in writing of any disqualifying
disposition (within the meaning of Section 421(b) of the Code) of Shares
received upon the exercise of an Incentive Option.

 

Section 20.  Restricted Stock

 

(a)                                  The
Committee may from time to time, in its sole and absolute discretion, award
Shares of Restricted Stock to such persons as it shall select from among those
persons who are eligible under Section 5 of the Plan to receive awards of
Restricted Stock.  Any award of
Restricted Stock shall be made from Shares subject hereto as provided in
Section 4 of the Plan.

 

(b)                                 A
Share of Restricted Stock shall be subject to such restrictions, terms and
conditions, including forfeitures, if any, as may be determined by the
Committee, which may include, without limitation, the rendition of services to
the Company or its Affiliates for a specified time or the achievement of
specific goals, and to the further restriction that no such Share may be sold,
assigned, transferred, discounted, exchanged, pledged or otherwise encumbered
or disposed of until the terms and conditions set by the Committee at the time
of the award of the Restricted Stock have been satisfied; provided, however,
that the minimum restriction period shall be three years from the date of award
(one year in the case of Shares of Restricted Stock awarded with
performance-based conditions).  Each
recipient of an award of Restricted Stock shall enter into an Agreement with
the Company, in such form as the Committee shall prescribe, setting forth the
restrictions, terms and  conditions of
such award, whereupon such recipient shall become a participant in the Plan.

 

If a
person is awarded Shares of Restricted Stock, whether or not escrowed as
provided below, the person shall be the record owner of such Shares and shall
have all the rights of a shareholder with respect to such Shares (unless the
escrow agreement, if any, specifically provides otherwise), including the right
to vote and the right to receive dividends or other distributions made or paid
with respect to such Shares.  Any
certificate or certificates representing Shares of Restricted Stock shall bear
a legend similar to the following:

 

The
shares represented by this certificate have been issued pursuant to the terms
of the Noble Energy, Inc. 1992 Stock Option and Restricted Stock Plan and may
not be sold, assigned, transferred, discounted, exchanged, pledged or otherwise
encumbered or disposed of in any manner except as set forth in the terms of the
agreement embodying the award of such shares dated                                         ,              .

 

In
order to enforce the restrictions, terms and conditions that may be applicable
to a person’s Shares of Restricted Stock, the Committee may require the person,
upon the receipt of a certificate or certificates representing such Shares, or
at any time thereafter, to deposit such certificate or certificates, together
with stock powers and other instruments of transfer, appropriately endorsed in
blank, with the Company or an escrow agent designated by the Company under an
escrow agreement in such form as by the Committee shall prescribe.

 

11

 

After
the satisfaction of the restrictions, terms and conditions set by the Committee
at the time of an award of Restricted Stock to a person, a new certificate,
without the legend set forth above, for the number of Shares that are no longer
subject to such restrictions, terms and conditions shall be delivered to the
person.

 

If a
person to whom Restricted Stock has been awarded dies after satisfaction of the
restrictions, terms and conditions for the payment of all or a portion of the
award but prior to the actual payment of all or such portion thereof, such
payment shall be made to the person’s beneficiary or beneficiaries at the time
and in the same manner that such payment would have been made to the person.

 

The
Committee shall have the authority (and the Agreement evidencing an award of
Restricted Stock may so provide) to cancel all or any portion of any
outstanding restrictions prior to the expiration of such restrictions with
respect to any or all of the Shares of Restricted Stock awarded to a person
hereunder on such terms and conditions as the Committee may deem appropriate.

 

(c)                                  Without
limiting the provisions of the first paragraph of subsection (b) of this
Section 20, if a person to whom Restricted Stock has been awarded ceases to be
employed by at least one of the employers in the group of employers consisting
of the Company and its Affiliates, for any reason, prior to the satisfaction of
any terms and conditions of an award, any Restricted Stock remaining subject to
restrictions shall thereupon be forfeited by the person and transferred to, and
reacquired by, the Company or an Affiliate at no cost to the Company or the
Affiliate; provided, however, if the cessation is due to the person’s death,
disability or Retirement, the Committee may, in its sole and absolute
discretion, deem that the terms and conditions have been met for all or part of
such remaining portion.  In the event of
such forfeiture, the person, or in the event of his death, his personal
representative, shall forthwith deliver to the Secretary of the Company the
certificates for the Shares of Restricted Stock remaining subject to such
restrictions, accompanied by such instruments of transfer, if any, as may
reasonably be required by the Secretary of the Company.

 

(d)                                 In
case of any consolidation or merger of another corporation into the Company in
which the Company is the surviving corporation and in which there is a
reclassification or change (including a change to the right to receive cash or
other property) of the Shares (other than a change in par value, or from par
value to no par value, or as a result of a subdivision or combination, but
including any change in such shares into two or more classes or series of
shares), the Committee may provide that payment of Restricted Stock shall take
the form of the kind and amount of shares of stock and other securities
(including those of any new direct or indirect parent of the Company),
property, cash or any combination thereof receivable upon such consolidation or
merger.

 

Section 21.  General

 

(a)                                  The
proceeds received by the Company from the sale of Shares pursuant to Options
shall be used for general corporate purposes.

 

(b)                                 Nothing
contained in the Plan or in any Agreement shall confer upon any Optionee or
recipient of Restricted Stock the right to continue in the employ of the
Company or any Affiliate, or interfere in any way with the rights of the Company
or any Affiliate to terminate his employment at any time, with or without
cause.

 

(c)                                  Neither
the members of the Board nor any member of the Committee shall be liable for
any act, omission or determination taken or made in good faith with respect to
the Plan or any Option and any SARs that relate to such Option granted
hereunder or any Restricted Stock awarded hereunder; and the members of the
Board and the Committee shall be entitled to indemnification and reimbursement
by the Company in respect of any claim, loss, damage or expenses (including
counsel fees) arising therefrom to

 

12

 

the full extent permitted
by law and under any directors’ and officers’ liability or similar insurance
coverage that may be in effect from time to time.

 

(d)                                 Any
payment of cash or any issuance or transfer of Shares to an exercising Optionee
or permitted transferee, or to his legal representative, heir, legatee or
distributee, in accordance with the provisions hereof, shall, to the extent
thereof, be in full satisfaction of all claims of such persons hereunder.  The Committee may require an exercising
Optionee or permitted transferee, legal representative, heir, legatee or
distributee, as a condition precedent to such payment, to execute a release and
receipt therefor in such form as it shall determine.

 

(e)                                  Neither
the Committee, the Board nor the Company guarantees the Shares from loss or
depreciation.

 

(f)                                    All
expenses incident to the administration, termination or protection of the Plan,
including, but not limited to, legal and accounting fees, shall be paid by the
Company or its Affiliates.

 

(g)                                 Records
of the Company and its Affiliates regarding a person’s period of employment,
termination of employment and the reason therefor, leaves of absence,
re-employment and other matters shall be conclusive for all purposes hereunder,
unless determined by the Committee to be incorrect.

 

(h)                                 Any
action required of the Company shall be by resolution of its Board or by a
person authorized to act by resolution of the Board.  Any action required of the Committee shall be by resolution of
the Committee or by a person authorized to act by resolution of the Committee.

 

(i)                                     If
any provision of the Plan or any Agreement is held to be illegal or invalid for
any reason, the illegality or invalidity shall not affect the remaining
provisions of the Plan or such Agreement, as the case may be, but such
provision shall be fully severable and the Plan or such Agreement, as the case
may be, shall be construed and enforced as if the illegal or invalid provision
had never been included herein or therein.

 

(j)                                     Whenever
any notice is required or permitted hereunder, such notice must be in writing
and personally delivered or sent by mail. 
Any notice required or permitted to be delivered hereunder shall be
deemed to be delivered on the date on which it is personally delivered, or,
whether actually received or not, on the third business day after it is
deposited in the United States mail, certified or registered, postage prepaid,
addressed to the person who is to receive it at the address which such person
has theretofore specified by written notice delivered in accordance
herewith.  The Company, an Optionee or a
recipient of Restricted Stock may change, at any time and from time to time, by
written notice to the other, the address that it or he had theretofore
specified for receiving notices.  Until
changed in accordance herewith, the Company and each Optionee and recipient of
Restricted Stock shall specify as its and his address for receiving notices the
address set forth in the Agreement pertaining to the Shares to which such
notice relates.

 

(k)                                  Any
person entitled to notice hereunder may waive such notice.

 

(l)                                     The
Plan shall be binding upon the Optionee or recipient of Restricted Stock, his
heirs, legatees, distributees, legal representatives and permitted transferees,
upon the Company, its successors and assigns, and upon the Committee, and its
successors.

 

(m)                               The
titles and headings of Sections and paragraphs are included for convenience of
reference only and are not to be considered in the construction of the
provisions hereof.

 

(n)                                 All
questions arising with respect to the provisions of the Plan shall be
determined by application of the laws of the State of Texas except to the
extent Texas law is preempted by Federal law.

 

13

 

(o)                                 Words
used in the masculine shall apply to the feminine where applicable, and
wherever the context of the Plan dictates, the plural shall be read as the
singular and the singular as the plural.

 

Section 22.  UK
Sub-Plan

 

Any
provision of this Plan to the contrary notwithstanding, the Committee may grant
to the employees of the Company or one of its Affiliates whose compensation
from the Company or such Affiliate is subject to taxation under the laws of the
United Kingdom Options which (i) will terminate one year after the Optionee’s
death, (ii) cannot be transferred to a permitted transferee pursuant to
the provisions of Section 10, (iii) cannot be exercised using a means of
payment other than cash or a certified check or cashier’s check, and (iv) will
not be adjusted pursuant to Section 13 without the approval of the Board of
Inland Revenue of the United Kingdom.

 

14

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