Document:

Exhibit 10.4

VENOCO, INC.

2007
SENIOR EXECUTIVE BONUS PLAN

SECTION 1

ESTABLISHMENT AND PURPOSE

1.1                                 Purpose.  Venoco, Inc. hereby
establishes the Venoco, Inc. 2007 Senior Executive Bonus Plan (the “Plan”).  The Plan is intended to increase stockholder
value and the success of the Company by motivating key executives (a) to
perform to the best of their abilities, and (b) to achieve the Company’s
objectives.  The Plan’s goals are to be
achieved by providing such executives with incentive awards based on the achievement
of goals relating to the performance of the Company and its individual business
units.  The Plan is intended to qualify
as performance-based compensation under Section 162(m) of the Code.

1.2                                 Effective Date.  The
Plan shall be effective upon its adoption by the Compensation Committee of the
Board, subject to approval by stockholders of the Company at the 2007 Annual
Meeting.  As long as the Plan remains in
effect, it shall be resubmitted to stockholders as necessary to enable the Plan
to continue to qualify as performance-based compensation under
Section 162(m) of the Code.

SECTION 2

DEFINITIONS

The following words and
phrases shall have the following meanings unless a different meaning is plainly
required by the context:

2.1                                 “Actual
Award” means as to any Plan
Year, the actual award (if any) payable to a Participant for the Plan
Year.  The Actual Award is determined by
the Payout Formula for the Plan Year, subject to the Committee’s authority
under Section 3.5 to reduce the award otherwise determined by the Payout
Formula.

2.2                                 “Base
Salary” means as to any Plan
Year, 100% of the Participant’s salary he or she earned for the applicable Plan
Year.  Such Base Salary shall be before
both (a) deductions for taxes or benefits, and (b) deferrals of
compensation pursuant to Company-sponsored plans.

2.3                                 “Beneficiary” means the person(s) or entity(ies)
designated to receive payment of an Actual Award, in accordance with Section
4.5, in the event of a Participant’s death. 
The Beneficiary designation shall be effective when it is submitted in
writing to and acknowledged by the Committee during the Participant’s lifetime
on the Beneficiary Designation form provided in Appendix A. 
The submission of a
new Beneficiary Designation form in accordance with the preceding sentence
shall cancel all prior Beneficiary Designations.

2.4                                 “Board” means the Company’s Board of Directors.

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2.5                                 “Code” means the Internal Revenue Code of 1986, as
amended.  Reference to a specific Section
of the Code shall include such Section, any valid regulation promulgated
thereunder, and any comparable provision of any future legislation or
regulation amending, supplementing or superseding such Section or regulation.

2.6                                 “Committee” means the committee appointed by the Board
to administer the Plan.  The Committee
shall consist of no fewer than two members of the Board.  The members of the Committee shall be
appointed by, and serve at the pleasure of, the Board.  Each member of the Committee shall qualify as
an “outside director” under Section 162(m) of the Code.

2.7                                 “Company” means Venoco, Inc., a Delaware corporation.

2.8                                 “Determination
Date” means as to any Plan
Year, the later of (a) the first day of the Plan Year, or (b) the
latest date possible which will not jeopardize the Plan’s qualification as
performance-based compensation under Section 162(m) of the Code.

2.9                                 “Maximum
Award” means as to any
Participant for any Plan Year, two million dollars ($2,000,000.00).  The Maximum Award is the maximum amount which
may be paid to a Participant for any Plan Year.

2.10                           “Participant” means as to any Plan Year, an officer of
the Company who has been selected by the Committee for participation in the
Plan for that Plan Year.

2.11                           “Payout
Formula” means as to any
Plan Year, the formula or payout matrix established by the Committee pursuant
to Section 3.4, in order to determine the Actual Awards (if any) to be
paid to Participants.  The formula or
matrix may differ from Participant to Participant.

2.12                           “Performance
Goals” means the goal(s) (or
combined goal(s)) determined by the Committee (in its discretion) to be
applicable to a Participant for a Plan Year. 
As determined by the Committee, the Performance Goals applicable to each
Participant shall provide for a targeted level or levels of achievement using
one or more of the following measures: 
(a) implementation of a strategic plan, (b) stock price, (c) earnings
per share, (d) total stockholder return, (e) operating margin, (f) stock
price as a multiple of cash flow, (g) return on equity, (h) return on assets,
(i) return on investment, (j) operating income, (k) net operating income,
(l) pre-tax income, (m) cash flow, (n) revenue,
(o) expenses, (p) earnings before interest, taxes and depreciation, (q)
economic value added, (r) reserve additions, (s) finding and development
costs, (t) drilling and work-over budget, (u) increases in average daily
production, (v) return on capital invested, (w) corporate overhead costs,
(x) interest coverage ratio, (y) consolidated leverage ratio,
(z) ratio of PV 10 reserves to debt, (aa) environmental and safety
programs, (bb)  stockholders’ equity, and (cc) corporate
acquisitions.  The Performance Goals may
be applicable to the Company and/or any of its subsidiaries or individual
business units and may differ from Participant to Participant.

2.13                           “Plan
Year” means the fiscal year
of the Company beginning in 2007 and each succeeding fiscal year of the
Company.

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2.14                           “Target
Award” means the target
award payable under the Plan to a Participant for the Plan Year, expressed as a
percentage of his or her Base Salary or an amount, as determined by the
Committee in accordance with Section 3.3.

2.15                           “2005 Stock Incentive Plan” means the
Venoco, Inc. Amended and Restated 2005 Stock Incentive Plan, as amended from
time to time.

SECTION 3

SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS

3.1                                 Selection of Participants.  On
or prior to the Determination Date, the Committee, in its sole discretion,
shall select the officers of the Company who shall be Participants for the Plan
Year.  In selecting Participants, the
Committee shall choose officers who are likely to have a significant impact on
the performance of the Company. 
Participation in the Plan is in the sole discretion of the Committee,
and on a Plan Year by Plan Year basis. 
Accordingly, an officer who is a Participant for a given Plan Year in no
way is guaranteed or assured of being selected for participation in any
subsequent Plan Year or Years.

3.2                                 Determination of Performance Goals.  On
or prior to the Determination Date, the Committee, in its sole discretion,
shall establish the Performance Goals for each Participant for the Plan
Year.  Such Performance Goals shall be
set forth in writing.

3.3                                 Determination of Target Awards.  On
or prior to the Determination Date, the Committee, in its sole discretion,
shall establish a Target Award for each Participant.  Each Participant’s Target Award shall be
determined by the Committee in its sole discretion, and each Target Award shall
be set forth in writing.

3.4                                 Determination of Payout Formula or Formulae.  On
or prior to the Determination Date, the Committee, in its sole discretion,
shall establish a Payout Formula or Formulae for purposes of determining the
Actual Award (if any) payable to each Participant.  Each Payout Formula shall (a) be in writing,
(b) be based on a comparison of actual performance to the Performance Goals,
(c) provide for the payment of a Participant’s Target Award if the Performance
Goals for the Plan Year are achieved, and (d) provide for an Actual Award
greater than or less than the Participant’s Target Award, depending upon the
extent to which actual performance exceeds or falls below the Performance
Goals.  Notwithstanding the preceding, no
participant’s Actual Award under the Plan may exceed the Maximum Award.

3.5                                 Determination of Actual Awards.  As
soon as administratively practicable, after the end of each Plan Year, the
Committee shall certify in writing the extent to which the Performance Goals
applicable to each Participant for the Plan Year were achieved or exceeded.  The Actual Award for each Participant shall
be determined by applying the Payout Formula to the level of actual performance
which has been certified by the Committee. 
Notwithstanding any contrary provision of the Plan, (a) the
Committee, in its sole discretion, may eliminate or reduce the Actual Award
payable to any Participant that would otherwise be payable under the Payout
Formula, (b) if a Participant terminates employment with the Company prior
to the date the Actual Award for the Plan Year is paid, the Committee shall
reduce his or her Actual Award

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proportionately based on the date of
termination (and subject to further reduction or elimination under clause (a)
of this sentence).

SECTION 4

PAYMENT OF AWARDS

4.1                                 Right to Receive Payment.  Each
Actual Award that may become payable under the Plan shall be paid solely from
the general assets of the Company. 
Nothing in this Plan shall be construed to create a trust or to
establish or evidence any Participant’s claim of any right other than as an unsecured
general creditor with respect to any payment to which he or she may be
entitled.

4.2                                 Timing of Payment. 
Payment of each Actual Award shall be made within one (1) month after
the Committee determines the amount of the Actual Award (if any) under Section 3.5;
provided, however, that each payment shall be made in the calendar year
immediately following the end of the Plan Year for which the Actual Award is
determined under Section 3.5.

4.3                                 Form of Payment.  Each
Actual Award normally shall be paid in cash (or its equivalent) in a single
lump sum.  However, the Committee, in its
sole discretion, may declare any Actual Award, in whole or in part, payable in
the form of a restricted stock bonus granted under the 2005 Stock Incentive
Plan or successor equity compensation plan. 
The number of shares granted shall be determined by dividing the cash
amount of the Actual Award by the fair market value of a share of Company
common stock on the date that the cash payment otherwise would have been
made.  For this purpose, “fair market
value” shall be defined as provided in the 2005 Stock Incentive Plan or
successor equity compensation plan.

4.4                                 Other Deferral of Actual Awards.  The Committee may establish one or more
programs under the Plan to permit selected Participants the opportunity to
elect to defer receipt of Actual Awards. 
The Committee may establish the election procedures, the timing of such
elections, the mechanisms for payments of, and accrual of interest or other earnings,
if any, on amounts so deferred, and such other terms, conditions, rules and
procedures that the Committee deems advisable for the administration of any
such deferral program.  Any such deferral
program implemented pursuant to this Section 4.4 shall comply with Section 409A
of the Code.

4.5                                 Payment in the Event of Death.  If a
Participant dies prior to the payment of an Actual Award earned by him or her
for a Plan Year, the Actual Award shall be paid to the Participant’s
Beneficiary.  If a Participant fails to designate a Beneficiary or if each person
designated as a Beneficiary predeceases the Participant or dies prior to
distribution of the Participant’s benefits, then the Committee shall direct the
distribution of such benefits to the Participant’s estate.

SECTION 5

ADMINISTRATION

5.1                                 Committee is the Administrator.  The
Plan shall be administered by the Committee.

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5.2                                 Committee Authority.  The
Committee shall have all discretion and authority necessary or appropriate to
administer the Plan and to interpret the provisions of the Plan, consistent
with qualification of the Plan as performance-based compensation under
Section 162(m) of the Code.  Any
determination, decision or action of the Committee in connection with the
construction, interpretation, administration or application of the Plan shall
be final, conclusive, and binding upon all persons, and shall be given the
maximum deference permitted by law.

5.3                                 Tax Withholding.  The
Company shall withhold all applicable taxes from any payment, including any
non-U.S., federal, state, and local taxes. 
In the case of payment in the form of a restricted stock bonus pursuant
to Section 4.3, the granting and vesting of such restricted stock bonus shall
be subject to Section 10(g) of the 2005 Stock Incentive Plan, or such
comparable provisions of any successor plan regarding the withholding of taxes.

SECTION 6

GENERAL PROVISIONS

6.1                                 Nonassignability.  A
Participant shall have no right to assign or transfer any interest under this
Plan.

6.2                                 No Effect on Employment.  The
establishment and subsequent operation of the Plan, including eligibility as a
Participant, shall not be construed as conferring any legal or other rights
upon any Participant for the continuation of his or her employment for any Plan
Year or any other period.  Generally,
employment with the Company is on an at-will basis only.  Except as may be provided in an employment
contract with the Participant, the Company expressly reserves the right, which
may be exercised at any time during a Plan Year, to terminate any individual’s
employment without cause and without regard to the effect such termination
might have upon the Participant’s receipt of an Actual Award under the Plan.

6.3                                 No Individual Liability.  In
addition to such other rights of indemnification as they may have as members of
the Board or as officers or employees of the Company, members of the Board and
any officers or employees of the Company to whom authority to act for the
Board, the Committee or the Company is delegated shall be defended and
indemnified by the Company to the extent permitted by law on an after-tax basis
against all reasonable expenses, including attorneys’ fees, actually and
necessarily incurred in connection with the defense of any claim,
investigation, action, suit or proceeding, or in connection with any appeal
therein (each a “Claim”), to which they or any of them may be a party by reason
of any action taken or failure to act under or in connection with the Plan and
against all amounts paid by them in settlement thereof (provided such
settlement is approved by the Company) or paid by them in satisfaction of a
judgment in any such Claim, except in relation to matters as to which it shall
be adjudged in such claim, investigation, action, suit or proceeding that such
person is liable for gross negligence, bad faith or intentional misconduct;
provided, however, that within thirty (30) days after the institution of such
Claim, such person shall offer to the Company, in writing, the opportunity at
the Company’s expense to defend the same.

6.4                                 Severability; Governing Law.  If
any provision of the Plan is found to be invalid or unenforceable, such
provision shall not affect the other provisions of the Plan, and the Plan

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shall be construed in all respects as if such
invalid provision has been omitted.  The
provisions of the Plan shall be governed by and construed in accordance with
the laws of the State of Delaware, without giving effect to any choice of law
rule that would cause the application of the laws of any jurisdiction other
than the internal laws of the State of Delaware.

6.5                                 Affiliates of the Company. 
Requirements referring to employment with the Company or payment of
awards may, in the Committee’s discretion, be performed through the Company or
any affiliate of the Company.

6.6                                 Section
409A of the Code.  This Plan,
including any future amendments thereto which do not expressly amend this
Section 6.6, is designed, and shall be administered and operated, in the good
faith determination of the Board or the Committee, to comply with
Section 409A of the Code.  Although
the Company intends to administer the Plan so that it complies with the
requirements of Section 409A of the Code, the Company does not warrant that any
Actual Award under the Plan will in fact comply with Section 409A or qualify
for favorable tax treatment under any other provision of federal, state, local
or foreign law.  The Company shall not be
liable to any Participant for any tax, interest or penalties the Participant
might owe as a result of its participation in the Plan.

6.7                                 Savings
Clause.  This Plan is intended to
comply in all respects with applicable laws and regulations.  In case any one or more of the provisions of
this Plan shall be held invalid, illegal or unenforceable in any respect under
applicable law or regulation, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby and
the invalid, illegal or unenforceable provision shall be deemed null and void;
provided, however, to the extent permissible by law, any provision which could
be deemed null and void shall first be construed, interpreted or revised
retroactively to permit this Plan to be construed in compliance with all
applicable laws so as to foster the intent of this Plan.

SECTION 7

AMENDMENT AND TERMINATION

The Board or a duly
authorized committee thereof may amend or terminate the Plan at any time and
for any reason; provided, however, that if and to the extent required to ensure
the Plan’s qualification under Section 162(m) of the Code, any such amendment
shall be subject to stockholder approval. 
Any amendment shall comply with Section 409A of the Code.

*    *    *   
*    *

 6Exhibit
10.1

AMENDMENT
TO EMPLOYMENT AGREEMENT

This Amendment to EMPLOYMENT AGREEMENT (“Amendment”) is made
by and between NIGEL TRAVIS (“You”) and PAPA JOHN’S INTERNATIONAL, INC., a
corporation organized and existing under the laws of the State of Delaware (“Company”),
as of the 9th day of May, 2007.

W
I T N E S S E T H:

WHEREAS,
You and the Company have entered into an Employment Agreement effective as of
January 31, 2005 (the “Employment Agreement”);

WHEREAS,
You and the Company desire to amend the Employment Agreement to the extent
provided herein, to provide for your long-term incentive program participation
after the date hereof in performance-based restricted stock instead of
performance shares, and to make certain other changes to vesting and holding
period requirements, all without alteration of the terms of any existing grants
of performance shares or stock options under the original terms of the
Employment Agreement;

NOW
THEREFORE, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, and in consideration of the
mutual covenants and obligations herein contained, the Company and You agree as
follows:

1. Long-term
incentive program. Under the heading “Long-Term Incentive Program” on
Schedule A of the Employment Agreement, the first bullet point regarding the “Performance
Share Plan” is replaced in its entirety with the following:

·                  Performance
Share Plan and Performance-Based Restricted Stock.- (i) For 2005 (prorated) and
2006: Performance Share Plan — 3-year performance period based on shareholder
return versus peer group — Annual performance share unit grant of 20,000 (post
2006 stock split) (prorated for 2005).Example: 40th percentile versus peer group results in award
of 50% of target; 50th = 100%; 75th = 200%. (ii) For
the remainder of the term of employment under the Employment Agreement, Annual
performance-based restricted stock grant of 20,000 shares, to be made at the
time of the annual grants to other Company officers and employees. This grant
will have a 3-year performance period based on the Company’s compounded annual
growth rate of operating income, or such other performance period or
performance measure as the Company may implement from time to time with respect
to restricted stock grants comprising a component of the long-term incentive
compensation program.

2. Hold period
and vesting. The note denoted with an asterisk at the end of Schedule A is
hereby modified such that the hold period on option grants made on or after the
date of this Amendment is changed from one year to three months, and the
vesting period for option grants made on or after the date of this Amendment is
changed from two year cliff to three year graded, and such note is replaced to
read in its entirety as follows:

*Note: All
option grants by the Company shall have a two year cliff vest, in case of
option grants prior to May 9, 2007, or three year graded vest, in case of
option grants on or after May 9, 2007, in each case with a five year expiration
term. Shares received upon exercise, net of payment of option price and
applicable taxes, must be held at least (i) one year following exercise, in
case of option grants prior to May 9, 2007, or (ii) three months following
exercise, in case of option grants on or after May 9, 2007.

3. Continuation
of Other Terms. Except as set forth herein, all other terms and conditions
of the Employment Agreement shall remain in full force and effect.

4. Complete
Agreement. This Amendment and the Employment Agreement together constitute
the entire agreement between You and the Company with respect to the subject
matter described herein.

[Signature page
follows]

IN WITNESS
WHEREOF, You and the Company have executed and delivered this Agreement at
Louisville, Kentucky as of the date first written above.

	
  

  	
  YOU:

  
	
   

  	
   

  
	
   

  	
  /s/ Nigel Travis

  
	
   

  	
  NIGEL TRAVIS

  
	
   

  	
   

  
	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  PAPA JOHN’S INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter McCue

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President, Human Resources

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