Document:

exv10w1

 

Exhibit 10.1

APACHE CORPORATION

NON-EMPLOYEE DIRECTORS’ COMPENSATION PLAN

As Amended and Restated February 8, 2007; Effective as of January 1, 2007

PURPOSE

The purpose of the Non-Employee Directors’ Compensation Plan (the “Plan”) is to set forth certain
of the compensation arrangements for members of the board of directors (the “Board”) of Apache
Corporation (“Apache”) who are not also employees of Apache (“Non-Employee Directors”). The Plan
supersedes the Directors’ Deferred Compensation Plan. The Plan does not supersede or amend in any
way any other arrangements relating to Non-Employee Directors including specifically, without
limitation, the Outside Directors’ Retirement Plan, the 2007 Omnibus Equity Compensation Plan
(subject to stockholder approval of such plan), indemnification provisions of Apache’s charter or
bylaws, or policies with respect to reimbursement of expenses.

PLAN PROVISIONS

1. Board Retainer. Each Non-Employee Director shall be paid $37,500.00 at the end
of each calendar quarter (or as soon thereafter as is administratively practicable) during
which he or she served as a member of Apache’s Board (“Cash Retainer Fee”). If a
Non-Employee Director serves as a member of Apache’s Board for less than an entire calendar
quarter, the Cash Retainer Fee for that quarter shall be prorated on the basis of the number
of weeks served during that calendar quarter.

2. Committee Chairperson Retainers. Each Non-Employee Director serving as
chairperson of any committee of Apache’s Board shall be paid $3,750.00 at the end of each
calendar quarter (or as soon thereafter as is administratively practicable) (“Committee
Chairperson Retainer Fee”). If a Non-Employee Director serves as chairperson of any
committee of Apache’s Board for less than an entire calendar quarter, the Committee
Chairperson Retainer Fee for that quarter shall be prorated on the basis of the number of
weeks as chairperson during that calendar quarter.

3. Attendance Fees. No attendance fee shall be paid to any Non-Employee Director for
any meeting of the Board or any committee thereof attended in person or by teleconference,
video conference, or other similar means.

4. Optional Deferral of Fees.

(a) Deferrable Fees. A Non-Employee Director may defer all or any portion of any
unpaid Cash Retainer Fees and Committee Chairperson Retainer Fees (“Deferrable Fees”). No
other payments to Non-Employee Directors may be deferred including, without limitation, any
expense reimbursement, benefits payable
under the Outside Directors’ Retirement Plan, and any award under the 2007 Omnibus Equity
Compensation Plan (subject to stockholder approval of such plan).

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(b) Election to Defer. A Non-Employee Director’s election to defer all or any
portion of Deferrable Fees (“Deferral Election”) shall be effected by the completion of a
Deferral Election form. A Deferral Election form must be executed by the deferring
Non-Employee Director and received by Apache on or before December 31 of the year prior to
the year for which deferral is elected, except that a new Non-Employee Director may enter
into a Deferral Election within 30 days of becoming a Non-Employee Director. A Deferral
Election shall apply only to Deferrable Fees paid for services rendered after the date of
the Deferral Election. Each December 31, a Deferral Election made for the following year
shall become irrevocable. A new Deferral Election must be made each year for the upcoming
year.

(c) Deferral Elections for 2007. In December 2006, Non-Employee Directors made
deferral elections for the fees they expected to earn in 2007. The types of fees that
Non-Employee Directors earn have now been revised. However, Non-Employee Directors may not
make new Deferral Elections for the fees earned in 2007. Instead, the December 2006
election regarding 2007 “cash retainer fees” shall be applied to the Cash Retainer Fee
earned in 2007 and the December 2006 election regarding 2007 “committee retainer fees” shall
be applied to the Committee Chairperson Retainer Fee earned in 2007. The December 2006
elections regarding 2007 “stock retainer fees” and 2007 “attendance fees” shall be ignored,
as the Non-Employee Directors will not earn those types of fees in 2007.

(d) Memorandum Account. Apache shall maintain a separate account (“Memorandum
Account”) for each deferring Non-Employee Director. Each Memorandum Account shall be
subdivided into a “Cash Account” and a “Stock Account.” The Memorandum Accounts are merely
for recordkeeping purposes, and do not represent any actual property that has been set aside
for Non-Employee Directors. Nothing contained in this Plan shall be construed to require
Apache to fund any Memorandum Account. Neither the deferring Non-Employee Director nor his
or her Beneficiary shall have any property interest whatsoever in any specific assets of
Apache. A Non-Employee Director shall have no ownership rights with respect to any balance
in his or her Memorandum Account, and thus shall have no right to vote any Stock in his or
her Stock Account.

(e) Crediting of Cash Accounts. Any deferred Cash Retainer Fees and deferred
Committee Chairperson Retainer Fees shall be credited to the Cash Account. Any dividends
paid on Stock in the Stock Accounts shall be credited to the Cash Account. All amounts
credited to a Cash Account shall be credited with investment earnings at the rate of
interest earned by Apache’s short-term marketable securities portfolio or an equivalent
index or market rate for similar investments in short-term marketable securities.

(f) Crediting of Stock Accounts. No deferrals after December 31, 2006 shall be
credited to a Stock Account; however, see section 4(g) for transfers from the Cash Account
to the Stock Account. All amounts credited to a Stock Account shall be treated as if such
amounts were invested in Stock. Apache shall at all times have reserved from its treasury shares for issuance under this Plan a number of shares at least equal to the number of
shares of Stock in the Stock Accounts.

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(g) Transfers from Cash Account to Stock Account. Each year, a Non-Employee
Director may elect to transfer all or a portion of his or her Cash Account to his or her
Stock Account (but only in whole-share increments) by completing an election form that must
be received by Apache on or before December 31. Any such transfer shall be made as of the
first trading day of the following year, and shall be based on the per share closing price
of the Stock as reported on the Composite Tape for the first trading day of the year.
Transfers are not permitted from a Stock Account to a Cash Account.

(h) Payout Elections. If a Non-Employee Director’s directorship terminated before
January 1, 2005, his or her benefit payments shall be determined under the terms of the Plan
on December 31, 2004 and the payout elections in effect at the time his or her directorship
terminated. The remainder of this section 4(h) shall only apply to individuals who continue
as Non-Employee Directors after December 31, 2004, or who became Non-Employee Directors
after December 31, 2004.

(i) Election. During 2005, each Non-Employee Director made a payout election
for his or her Memorandum Account, which specified both the timing and form of
distribution. A new Non-Employee Director shall make a payout election at the same
time that he or she makes his or her first Deferral Election. If no payout election
is made by that time, the Non-Employee Director shall be deemed to have elected to be
paid a single lump-sum payment in January after separating from service (except that,
if he or she is a specified employee, his or her payment shall be delayed, if
necessary, until six months after he or she separated from service). The payout
election will not apply if there is a change of control (see section 4(i)) or the
Non-Employee Director dies (see section 4(j)).

(ii) Form of Payout. A Non-Employee Director may elect to be paid out in a
single lump-sum payment or in two to ten annual installments. Each installment from
a Stock Account shall be equal to the number of shares in the Stock Account on the
second business day of that year, divided by the number of remaining installments,
rounded down to the nearest whole share. For example, the first installment from a
Stock Account payable in seven installments beginning in 2008 shall be one-seventh of
the shares in the account on the second trading day of 2008; the second installment
shall be one-sixth of the shares in the account on the second trading date of 2009;
etc. Each installment from a Cash Account shall be equal to the balance of the Cash
Account on the second trading day of the year, divided by the number of remaining
installments, except that the last installment shall equal the balance of the Cash
Account at the time the distribution is processed. Distributions from the Stock
Account shall be paid in whole shares of Stock. Distributions from the Cash Account
shall be paid in cash.

(iii) Timing of Payment(s). A Non-Employee Director may select a specific
year in which the single lump-sum payment is made or the installment payments begin
(“In-Service Distribution”), in which case the payment will be made as soon as
administratively practicable in January of the earlier of the selected year or the
year after the Non-Employee Director separates from

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service (but, if the Non-Employee Director is a specified employee, not earlier than
six months after he or she separated from service). Alternatively, a Non-Employee
Director may elect for his or her single lump-sum payment or first installment to be
paid as soon as administratively practicable in the January after the Non-Employee
Director separated from service (but, if the Non-Employee Director is a specified
employee, not earlier than six months after separating from service). Subsequent
installment payments shall be made in January of each year, beginning with the year
after the first installment was paid.

(iv) Special Rules Where Payments Begin While Still a Director. This section
4(h)(iv) applies to a Non-Employee Director who elected an In-Service Distribution.
A second Memorandum Account shall be established for the Non-Employee Director for
any amounts deferred into the Plan during or after the year in which the In-Service
Distribution is scheduled to begin. Distributions from the second Memorandum Account
shall be subject to the rules specified in this section 4(h), except that a
Non-Employee Director must complete a payout election for the second Memorandum
Account by the December 31 that immediately precedes the year in which amounts are
first deferred into the second Memorandum Account.

(v) Definitions. As used in this section 4, the term “specified employee”
has the meaning described in section 409A(a)(2)(B)(i) of the Internal Revenue Code of
1986, as amended (“Code”), and the term “separate from service” or “separation from
service” has the meaning described in section 409A(a)(2)(A)(i) of the Code.

(i) Change of Control. If there is a change of control of Apache that is described
in section 409A(a)(2)(A)(v) of the Code, each Memorandum Account shall be paid to the
appropriate Non-Employee Director (or to the Beneficiary of a deceased Non-Employee
Director) in a single lump-sum payment made on the date of the change of control or as soon
thereafter as is administratively practicable.

(j) Beneficiaries. If a Non-Employee Director dies while there is still a balance
in his or her Memorandum Account, that amount shall be paid to his or her Beneficiary in a
single lump-sum payment that is made as soon as administratively convenient after the
Non-Employee Director’s death, after giving the Beneficiary an opportunity to disclaim and
after Apache has been furnished with proof of death and such other information as it may
reasonably require.

(i) Designation. Each Non-Employee Director shall designate one or more
persons, trusts, or other entities as his or her beneficiary (“Beneficiary”). In the
absence of an effective Beneficiary designation as to part or all of a Memorandum
Account, such amount shall be distributed to the Non-Employee Director’s surviving
Spouse, if any, otherwise to the Non-Employee Director’s estate. Unless the
Non-Employee Director’s Beneficiary designation form specifies otherwise, if a
Beneficiary dies after the Non-Employee Director but before being paid by the Plan,
the Plan shall pay the Beneficiary’s estate.

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(ii) Changing Beneficiaries. A Beneficiary designation may be changed by the
Non-Employee Director at any time and without the consent of any previously
designated Beneficiary. However, if the Non-Employee Director is married, the
Non-Employee Director’s Spouse shall be the Beneficiary unless the Spouse has
consented to the designation of a different Beneficiary. To be effective, the
Spouse’s consent must have been made before January 1, 2005 or, if made on or after
January 1, 2005, the Spouse’s consent must be in writing, witnessed by a notary
public, and filed with Apache. If the Non-Employee Director has designated his or
her Spouse as a primary or contingent Beneficiary, and the Non-Employee Director and
Spouse later divorce (or their marriage is annulled), then the former Spouse will be
treated as having pre-deceased the Non-Employee Director for purposes of interpreting
a Beneficiary designation form completed prior to the divorce or annulment; this
provision will apply only if Apache is notified of the divorce or annulment before
payment to the former Spouse is made.

(iii) “Spouse” shall mean the individual to whom a Non-Employee Director is lawfully
married according to the laws of the state of the Non-Employee Director’s domicile.

(iv) Disclaimers. Any individual or legal entity who is a Beneficiary may
disclaim all or any portion of his or her interest in the Plan, provided that the
disclaimer satisfies the requirements of section 2518(b) of the Code and applicable
state law. The legal guardian of a minor or legally incompetent person may disclaim
for such person. The personal representative (or the individual or legal entity
acting in the capacity of the personal representative according to applicable state
law) may disclaim on behalf of a Beneficiary who has died. The amount disclaimed
shall be distributed as if the disclaimant had predeceased the individual whose death
caused the disclaimant to become a Beneficiary.

(k) Adjustments in Stock. In the event of any merger, consolidation, liquidation,
dissolution, recapitalization, or reorganization of Apache, split, subdivision, or
consolidation of shares of Stock, the payment of a stock dividend, or any other material
change in Apache’s capital structure, the number of shares of Stock shown in each deferring
Non-Employee Director’s Stock Account shall be adjusted to reflect that number of shares of
Stock or such cash, securities, or other property to which such Non-Employee Director would
have been entitled if, immediately prior thereto, such Non-Employee Director had been the
holder of record of the number of shares of Stock shown in the Stock Account.
Notwithstanding the foregoing, the issuance by Apache of Stock, rights, options, or warrants
to acquire Stock, or securities convertible or exchangeable into Stock in consideration of
cash, property, labor, or services, whether or not for fair value, shall not result in an
adjustment pursuant to this section 4(k).

5. Assignment and Transfer. The right of the Non-Employee Director or any other person to
receive payments under the Plan shall not be assigned, transferred, pledged, or encumbered.

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6. Amendment of Plan. The Plan may be amended from time to time or terminated by vote of
the Board. Upon such amendment or termination, Non-Employee Directors shall not be entitled to
receive pursuant to the Plan any compensation or other rights or benefits not accrued hereunder
prior to the time of amendment or termination hereof; provided, however, that no such Plan
amendment or termination shall impair any rights of Non-Employee Directors to amounts previously
accrued pursuant to the Plan or accumulated in such Non-Employee Director’s Memorandum Account. A
Plan termination shall not affect the timing of any benefit payments from a Memorandum Account;
payment may occur substantially after the Plan is terminated. A Plan amendment may delay the
timing of a benefit payment. A Plan amendment may accelerate the timing of a benefit payment, but
only if the acceleration would not cause the Plan to violate section 409A(a)(3) of the Code.

7. Successors and Assigns. The Plan is binding upon Apache and its successors and assigns.
The Plan shall continue in effect until terminated by the Board. Any such termination shall
operate only prospectively and shall not affect the rights and obligations under elections
previously made.

8. Notices. Any notice, form, or election required or permitted to be given under the Plan
shall be in writing and shall be given by first class mail, by Federal Express, UPS, or other
carrier, by fax or other electronic means, or by personal delivery to the appropriate party,
addressed:

(a) If to Apache, to Apache Corporation at its principal place of business at 2000 Post Oak
Boulevard, Suite 100, Houston, Texas 77056-4400 (Attention: Corporate Secretary) or at such
other address as may have been furnished in writing by Apache to a Non-Employee Director; or

(b) If to a Non-Employee Director or Spouse, at the address the Non-Employee Director has
furnished to Apache in writing.

(c) If to a Beneficiary, at the address the Non-Employee Director has furnished to Apache in
writing for such Beneficiary.

Any such notice to a Non-Employee Director, Spouse, or Beneficiary shall be deemed to have been
given as of the third day after deposit in the United States Postal Service, postage prepaid,
properly addressed as set forth above, in the case of a mailed notice, or as of the date delivered
in the case of any other method of delivery.

9. Gender. Any term used herein in the singular shall also include the plural, and the
masculine gender shall also include the feminine gender, and vice versa.

10. Statutory References. Any reference to a specific section of the Code shall be deemed
to refer to that section or to the appropriate successor section.

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11. Governing Law. The Plan and all elections hereunder shall be construed in accordance
with and governed by the laws of the State of Texas.

Dated: February 8, 2007; Effective as of January 1, 2007

	 	 	 	 	 
	ATTEST:

	 	APACHE CORPORATION
	 	 
	 
	 	 	 	 
	/s/ Cheri L. Peper

	 	/s/ Jeffrey M. Bender
	 	 
	 

	 	 	 	 
	Cheri L. Peper

Corporate Secretary

	 	Jeffrey M. Bender

Vice President, Human Resources
	 	  

7exv10w2

 

Exhibit 10.2

APACHE CORPORATION

EQUITY COMPENSATION PLAN FOR NON-EMPLOYEE DIRECTORS

AS AMENDED AND RESTATED FEBRUARY 8, 2007

Apache Corporation, a Delaware corporation (the “Company”), established the Apache Corporation
Equity Compensation Plan for Non-Employee Directors (the “Plan”), effective as of February 9, 1994,
for those directors of the Company who are neither officers nor employees of the Company (the
“Directors”) and authorized a maximum of 115,500 shares of the Company’s common stock, par value
$0.625 per share (the “Common Stock”) for issuance thereunder during the term of the Plan, which
shares consist entirely of treasury stock.

1. Each Director shall receive automatic and non-discretionary grants of restricted stock
(“Restricted Stock Awards”) on the terms and conditions set forth under the Plan. Each Director
receiving a Restricted Stock Award shall enter into an agreement (a “Restricted Stock Agreement”)
in such form as the Board of Directors of the Company (the “Board”) or a duly authorized committee
of the Board (the “Committee”) shall determine to be consistent with the provisions of the Plan and
which may contain additional terms and conditions relating to the Restricted Stock Awards. In the
event of any inconsistency between the provisions of the Plan and any Restricted Stock Agreement,
the provisions of the Plan shall govern.

2. The Committee shall be responsible for the administration of the Plan. However, the Committee
shall have no authority, discretion or power to (i) select the Directors who will receive
Restricted Stock Awards, (ii) determine the terms of the Restricted Stock Awards to be granted
pursuant to the Plan, the number of shares of Common Stock to be issued thereunder or the time at
which such Restricted Stock Awards are to be granted, (iii) establish the duration and nature of
Restricted Stock Awards, or (iv) alter any other terms or conditions specified in the Plan, except
to administer the Plan in accordance with its terms or to comport with changes in the Internal
Revenue Code, the Employment Retirement Income Security Act, or the rules and regulations
promulgated thereunder. Subject to the foregoing limitations, the Committee is authorized to (A)
interpret the Plan, (B) prescribe, amend and rescind rules and regulations relating to the Plan,
(C) provide for conditions and assurances deemed necessary or advisable to protect the interests of
the Company, and (D) make all other determinations necessary or advisable for the administration of
the Plan, but only to the extent not contrary to the express provisions of the Plan. The
Committee’s authority shall include, but not be limited to, the right to make equitable adjustments
in the number or kind of shares subject to outstanding Restricted Stock Awards, or which have been
reserved for issuance pursuant to the Plan but are not then subject to Restricted Stock Awards, to
reflect changes in the number or kind of outstanding shares of Common Stock due to any merger,
recapitalization or other extraordinary or unusual event.

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3. If the Company shall at any time increase or decrease the number of its outstanding shares of
Common Stock or change in any way the rights and privileges of such shares by means of the payment
of a stock dividend or any other distribution upon such shares payable in Common Stock, or through
a stock split, subdivision, consolidation, combination, reclassification or recapitalization
involving the Common Stock, then in relation to the Common Stock that is affected by one or more of
the above events, the numbers, rights and privileges of the following shall be increased, decreased
or changed in like manner as if they had been issued and outstanding, fully paid and nonassessable
at the time of such occurrence: (i) the shares of Common Stock which have been reserved for
issuance pursuant to the Plan but are not then subject to Restricted Stock Awards, and (ii) the
shares of Common Stock subject to outstanding Restricted Stock Awards granted hereunder.

4. Beginning on July 1, 1994, and on July 1 of each fifth year thereafter through and including
July 1, 2000, each Director shall receive a Restricted Stock Award of 1,000 shares of Common Stock.
Such Restricted Stock Awards shall vest at the rate of 20 percent per year on each of the first
through the fifth anniversaries of the date of the Restricted Stock Award. No further grants will
be made pursuant to this Section 4 after May 3, 2001.

5. Beginning on July 1, 2001, and on July 1 of each third year thereafter through and including
July 1, 2003, each Director shall receive a Restricted Stock Award of 1,000 shares of Common Stock.
Such Restricted Stock Awards shall vest at the rate of one-third (1/3) per year on each of the
first through the third anniversaries of the date of the Restricted Stock Award. No further grants
will be made pursuant to this Section 5 after July 1, 2003.

6. Beginning on July 1, 2004, and on July 1 of each third year thereafter through and including
July 1, 2009, each Director shall receive a Restricted Stock Award of 2,310 shares of Common Stock.
Such Restricted Stock Awards shall vest at the rate of one-third (1/3) per year on each of the
first through the third anniversaries of the date of the Restricted Stock Award. Any Director
elected to the Board of Directors subsequent to July 1, 2004 shall receive a Restricted Stock Award
of 2,310 shares of Common Stock on the next July 1 following the date of such election, regardless
of whether such date would normally have been an award date, which shall vest on the same schedule
and the same percentage as set forth in the second sentence hereof.

7. (a) No Restricted Stock Awards shall be granted to any Director subsequent to January 1, 2007.
Restricted Stock Awards, whether vested or unvested, may not be sold, assigned, pledged,
hypothecated, transferred or otherwise disposed of as long as a Director is serving as a member of
the Board.

     (b) All restrictions on Restricted Stock Awards shall lapse on the first business day
following the date on which a Director ceases to be a member of the Board; provided, however, that
the unvested portion of any Restricted Stock Award shall be automatically forfeited at such
time. Notwithstanding the foregoing, effective as of May 1, 2000, the unvested portion
of any Restricted Stock Award shall be automatically vested upon a Director’s retirement from the
Board or upon a Director’s death while still serving as a member of the Board; provided, however,
that the Director (i) is at least 60 years of age

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and has completed at least ten years of service as a Director at the time of
retirement, or (ii) has completed at least ten years of service as a Director at the time of death.

8. Certificates issued pursuant to Restricted Stock Awards shall be registered in the name of the
recipient Director and shall bear an appropriate restrictive legend referring to the terms,
conditions and restrictions applicable to such Restricted Stock Award. Certificates issued pursuant
to Restricted Stock Awards shall be held by the Corporate Secretary of the Company until the award,
or portion thereof, has vested and all applicable restrictions thereon shall have lapsed. As a
condition of any Restricted Stock Award, each Director shall have delivered to the Corporate
Secretary of the Company a stock power, endorsed in blank, relating to the Common Stock issued
pursuant to a Restricted Stock Award. A Director shall have all voting, dividend, liquidation and
other rights of a stockholder of the Company with respect to the shares of Common Stock issued
pursuant to any Restricted Stock Award, notwithstanding that all or a portion of such award shall
be unvested, subject to the restrictions described in the preceding paragraph.

9. In the event of a “change of control” of the Company, as defined in the Company’s Income
Continuance Plan (without regard to whether such Income Continuance Plan remains in effect or is
subsequently amended), any unvested portion of any Restricted Stock Award shall be vested
automatically, without further action by the Board or the Committee, effective as of the date of
such change of control.

10. The Board may at any time terminate, and from time to time may amend or modify the Plan;
provided, however, that no amendment or modification may become effective without approval of such
amendment or modification by the stockholders of the Company, if stockholder approval is required
to enable the Plan to satisfy any applicable statutory or regulatory requirements, or if the
Company, on the advice of counsel, determines that stockholder approval is otherwise necessary or
desirable. The Plan is expressly intended to comport with Rule 16b-3(c)(2)(ii) (or any successor
provision) as promulgated under the Securities Exchange Act of 1934, as amended, and any
ambiguities in the construction of the Plan or any Restricted Stock Agreement shall be resolved so
as to effectuate such intent.

Dated: February 8, 2007

	 	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	APACHE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Cheri L. Peper
 

Cheri L. Peper

Corporate Secretary
	 	 
	 	By:
	 	/s/ Jeffrey M. Bender
 

Jeffrey M. Bender

Vice President, Human Resources
	 	 

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