Document:

exv10w38

Exhibit 10.38

APACHE CORPORATION

NON-EMPLOYEE DIRECTORS’ COMPENSATION PLAN

As Amended and Restated November 20, 2008; Effective as of January 1, 2009

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
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, indemnification provisions of Apache’s charter or bylaws, or
policies with respect to reimbursement of expenses.

It is Apache’s express intention that this Plan comply with the requirements of Code §409A, and the
Plan shall be interpreted in that light.

PLAN PROVISIONS

1. Board Retainer. Each Non-Employee Director shall be paid $37,500 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 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”).

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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 in which the Deferrable Fees are earned, 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) 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.

(d) 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.

(e) Crediting of Stock Accounts. No deferrals shall be credited to a Stock Account;
however, see section 4(f) 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.

(f) 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.

(g) 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

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time his or her directorship terminated. If a Non-Employee Director had a Separation from
Service after December 31, 2004 and before January 1, 2009, his or her benefits shall be
determined under the terms of the Plan in effect at the time of his or her Separation from
Service (defined in paragraph (v) below). The remainder of this section 4(g) shall only
apply to individuals who continue as Non-Employee Directors after December 31, 2008, or who
become Non-Employee Directors after December 31, 2008.

(i) Election. Each individual who is Non-Employee Director on January 1,
2009 has 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 timely made, the Non-Employee Director shall be
deemed to have elected to be paid a single lump-sum payment in January after his or
her Separation from Service. The payout election with respect to a Memorandum
Account is irrevocable after the deadline for making the payout election. The payout
election will not apply if there is a change of control (see section 4(h)) or the
Non-Employee Director dies (see section 4(i)).

(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 trading 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 2010 shall be one-seventh of
the shares in the account on the second trading day of 2010; the second installment
shall be one-sixth of the shares in the account on the second trading date of 2011;
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’s Separation 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
his or her Separation 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
paragraph (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

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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(g), 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) Definition of Separation from Service. The term “Separation from
Service” has the same meaning as the term “separation from service” in Code
§409A(a)(2)(A)(i), determined using the default rules in the regulations and other
guidance of general applicability issued pursuant to Code §409A, including the
special rules for members of a board of directors found in Treasury Regulation
§1.409A-1(h)(5) and §1.409A-1(c)(2)(ii). In general, a Separation from Service will
occur when a Non-Employee Director ceases to be a member of the Board.

(vi) Special Rules for Specified Employees.

If a Non-Employee Director is a Specified Employee, (A) any payments under paragraph
(iii) above that are triggered by his or her Separation from Service and scheduled to
occur within six months after the Separation from Service shall be delayed and paid
six months after the Separation from Service, and (B) section 4(h) is modified for a
Non-Employee Director whose Separation from Service preceded a change of control by
less than six months to provide that the lump sum payment will not occur until six
months after the Separation from Service.

The term “Specified Employee” has the same meaning as the term “specified employee”
in Code §409A(a)(2)(B)(i), and is determined using the default rules in the
regulations and other guidance of general applicability issued pursuant to Code
§409A.

(h) 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.

(i) 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 four months
after the Non-Employee Director’s death, which provides the Beneficiary with an opportunity
to disclaim, except that no payment shall be made until 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

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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.

(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 Code §2518(b) 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.

(j) 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(j).

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.

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. Administrative Delays. The Committee may delay any payment from this Plan for as short
a period as is administratively necessary. For example, a delay may be imposed upon all payments
from the Plan when there is a change of recordkeeper, and a delay may be imposed on payments to any
recipient until they have provided the information needed for tax withholding and tax reporting, as
well as any other information reasonably requested by the Committee.

9. 409A Noncompliance. To the extent that Apache or the Committee takes any action that
causes a violation of Code §409A or fails to take reasonable actions required to comply with Code
§409A, Apache shall pay an additional amount (the “gross-up”) to the individual(s) who are subject
to the penalty tax under Code §409A(a)(1) that is sufficient to put the individual in the same
after-tax position he or she would have been in had there been no violation of Code §409A. Apache
shall not pay a gross-up if the cause of the violation of Code §409A is the recipient’s failure to
take reasonable actions (such as failing to timely provide the information required for tax
withholding or failing to timely provide other information reasonably requested by the Committee —
with the result that the delay in payment violates Code §409A). Any gross-up will be made as soon
as administratively convenient after the Committee determines the gross-up is owed, and no later
than the end of the calendar year immediately following the calendar year in which the additional
taxes are remitted. However, if the gross-up is due to a tax audit or litigation addressing the
existence or amount of a tax liability, the gross-up will be paid as soon as administratively
convenient after the litigation or audit is completed, and no later than the end of the calendar
year following the calendar year in which the audit is completed or there is a final and
non-appealable settlement or other resolution of the litigation.

10. 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

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(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, unless the Beneficiary has furnished his or her own address in
writing to Apache.

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.

11. 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.

12. 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.

13. Governing Law. The Plan shall be governed by the laws of the State of Texas, ignoring
any conflicts-of-law provisions.

Dated: November 20, 2008; Effective as of January 1, 2009

	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	APACHE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Cheri L. Peper

	 	 
	 	By:
	 	/s/ Margery M. Harris
	 	 
	 

	 	 	 	 	 	 	 	 
	Cheri L. Peper

Corporate Secretary

	 	 	 	 	 	Margery M. Harris

Vice President, Human Resources	 	 

7exv10w39

Exhibit 10.39

APACHE CORPORATION

OUTSIDE DIRECTORS’ RETIREMENT PLAN

(As Amended and Restated November 20, 2008, effective as of January 1, 2009)

APACHE CORPORATION (the “Company”) established the Apache Corporation Outside Directors’ Retirement
Plan (the “Plan”), effective as of December 15, 1992, to provide non-employee Directors of the
Company (“Outside Directors”) with certain retirement and death payments. The purpose of the Plan
is to advance the interests of the Company, its subsidiaries, and its stockholders by continuing to
attract and retain outstanding individuals as Outside Directors and to stimulate the efforts of
such individuals by giving suitable recognition to services which will contribute materially to the
success of the Company.

It is the Company’s express intention that this Plan comply with the requirements of Code §409A,
and the Plan shall be interpreted in that light.

ARTICLE I

Eligibility, Participation and Contributions

1.1 Eligibility and Participation.

     Each Outside Director begins to participate in the Plan as of the date his or her Service
begins.

1.2 Contributions.

     All amounts payable under the Plan shall be paid from the general assets of the Company.
Nothing contained in the Plan shall be deemed to create any fiduciary relationship between the
Company and the participating Outside Director (“Participant”). The rights of a Participant under
the Plan are no greater than the rights of an unsecured general creditor of the Company.

ARTICLE II

Retirement Payments

2.1 Definitions.

     The term “Separation from Service” has the same meaning as the term “separation from service”
in Code §409A(a)(2)(A)(i). A Separation from Service is determined using the default rules in the
regulations and other guidance of general applicability issued pursuant to Code §409A, including
the special rules for a member of a board of directors found in Treasury Regulation §1.409A-1(h)(5)
and §1.409A-1(c)(2)(ii). In general, a Separation from Service will occur when a Participant
ceases to be a member of the Company’s Board of Directors.

 

 

     The term “Specified Employee” has the same meaning as the term “specified employee” in Code
§409A(a)(2)(B)(i), and is determined using the default rules in the regulations and other guidance
of general applicability issued pursuant to Code §409A.

2.2 Retirement Payments.

     (a) Eligibility for Benefits. A Participant who Retires with four or more Quarters of
Service is entitled to receive benefits under the Plan.

     (b) Amount of Benefits. The amount of benefits under the Plan is equal to the value
of a series of quarterly payments, with each payment equal in amount to one-sixth of the
Participant’s Annual Director’s Retainer, and with the number of quarterly payments equal to the
number of the Participant’s Quarters of Service. As a consequence, each Participant will generally
receive an annual benefit of 662/3% of his or her Annual Director’s Retainer.

     (c) “Annual Director’s Retainer” means the aggregate annual amount of an Outside
Director’s board retainer fee payable pursuant to section 1 of the Company’s Non-Employee
Directors’ Compensation Plan (or comparable section of any successor plan), whether or not all or a
portion of such amount is deferred or delayed. Such amount will be determined as of the earlier of
the date a Participant ceases to be an Outside Director or the date the Participant dies.

     (d) “Quarter of Service” means the aggregate total full months of Service as an
Outside Director divided by three and rounded up to the next whole number, up to a maximum of 40
Quarters of Service.

     (e) “Retirement, Retired or Retires” means a Participant’s ceasing to hold office as
an Outside Director, for any reason other than death.

     (f) “Service” means the aggregate total, not to exceed 120, of (i) the number of full
months beginning on or after July 1, 1992 (whether or not consecutive) that a Participant held
office as an Outside Director, whether or not a Participant at the time, and (ii) 1/2 the number of
full months prior to July 1, 1992 (whether or not consecutive) that a Participant held office as an
Outside Director; provided, however, that a Participant who, as of December 15, 1992, has held
office as an Outside Director for an aggregate total of 15 years shall automatically be credited
with 120 full months of Service.

     (g) Episodic Participation. If a Participant has a Separation from Service and then
becomes an Outside Director again, (i) the Participant’s benefits from his or her initial episode
of participation shall be paid according to the terms of the Plan on the date of his or her
Separation from Service and shall not be affected by any subsequent Service, and (ii) the
Participant’s benefits from his or her later episodes of participation shall be calculated by
ignoring his or her Service from earlier episodes of participation. In calculating the amount of benefits for the most recent episode of participation, the

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maximum Quarters of Service is 40, reduced by the number of Quarters of Service for which he or she
earned benefits under this Plan from earlier episodes of participation.

2.3 Retirement Payments Following a Change of Control.

     In the event of a “change of control” of the Company, as defined in the Company’s Income
Continuance Plan (as amended or the corresponding provisions of any successor plan), each then
current Outside Director shall be eligible for the benefits described in section 2.2 even if the
Outside Director has less than four Quarters of Service. If the change of control is a transaction
described in §409A(a)(2)(A)(v) of the Internal Revenue Code of 1986, as amended (“Code”), each
Participant shall be paid a single lump-sum payment on the date of the change of control, or as
soon as practicable thereafter, equal to the net present value of the benefit to which the
Participant is entitled, calculated in the manner described in section 2.5, as of the date of the
change of control; however, if the Participant was a Specified Employee whose Separation from
Service occurred less than six months before the change of control, he or she shall be paid a
single lump-sum payment six months after the Separation from Service, or as soon as practicable
thereafter, equal to the net present value of the benefit to which the Participant is entitled,
calculated in the manner described in section 2.5, as of the date six months after the Separation
from Service. If the change of control is not a transaction described in Code §409A(a)(2)(A)(v),
each Participant shall be paid at the time(s) specified in section 2.4 or 2.5, whichever is
applicable.

2.4 Quarterly Payments.

     A Participant may elect to be paid quarterly installments that are paid on the last day of
each calendar quarter (or as near to that date as administratively practicable). See section 2.5
for the deadline for the Participant’s payout election. The first quarterly payment shall be made
as of the last day of the calendar quarter after the date of the Participant’s Separates from
Service, unless the Participant is a Specified Employee, in which case the first two quarterly
payments shall be delayed until, and paid with, the third regularly scheduled quarterly payment.

2.5 Lump-Sum Payments.

     A Participant shall receive a single lump-sum payment unless the Participant elects quarterly
installments. Participants on December 31, 2008 have already made their payout election. A new
Participant’s payout election must be made within 30 days after the individual becomes an Outside
Director. Once the deadline for making a payout election has passed, the payout election is
irrevocable.

     The lump sum shall be paid as soon as administratively practicable after the Participant’s
Separation from Service, unless the Participant is a Specified Employee, in which case the lump sum shall be paid as soon as administratively practicable after six
months after the Participant’s Separation from Service. The amount of the lump sum

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shall be
calculated by the Committee as of the date of the Participant’s Separation from Service. The
amount of the lump sum shall be equal to the net present value of the quarterly payments to which
the Participant would otherwise be entitled, determined using an annual interest rate equal to the
rate on ten-year treasury bonds/notes as reported in The Wall Street Journal published on or most
recently prior to the date of the Participant’s Separation from Service.

2.6 Retirement before 2009.

     A Participant whose Separation from Service occurred between December 31, 2004 and January 1,
2009 shall receive his or her benefit in accordance with the terms of the Plan in effect at the
time of the Separation from Service. A Participant who Retired before January 1, 2005 shall
receive his or her benefit in accordance with the terms of the Plan at the time of the Retirement.

ARTICLE III

Death Payments

3.1 Death Benefits.

     (a) Eligibility for Death Benefits. If a Participant dies before receiving all of his
or her benefits under Article II, the Participant’s Beneficiary, as determined in section 3.2,
shall receive the remaining benefits. If a Participant elected quarterly payments, the
Participant’s Beneficiary shall be paid a lump sum equal to the net present value of any remaining
payments, calculated as of the date of the Participant’s death, and calculated in the manner
specified in section 2.5. If a Participant is scheduled to receive a single lump-sum payment, but
dies before doing so, the Participant’s Beneficiary shall be paid the lump sum.

     (b) Timing. Payment to the Beneficiary shall be made as soon as administratively
convenient four months after the Participant’s death, which provides the Beneficiary with an
opportunity to disclaim, except that no payment shall be made until the Company has been furnished
with proof of death and such other information as it may reasonably require.

     (c) Beneficiary in Pay Status. The Beneficiary of a Participant who died on or before
December 31, 2008 shall receive his or her death benefits in accordance with the terms of the Plan
in effect on the date of the Participant’s death.

3.2 Beneficiaries.

     (a) “Beneficiary” means the recipient of the Participant’s death benefits under
section 3.1.

     (b) Designation. Each Participant shall designate one or more persons, trusts, or
other entities as his or her Beneficiary. In the absence of an effective

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Beneficiary designation
as to part or all of a Participant’s death benefits, the Participant’s surviving Spouse, if any,
shall be the Participant’s Beneficiary, and in the absence of a surviving Spouse, the Participant’s
estate shall be the Beneficiary. Unless the Participant’s Beneficiary designation form specifies
otherwise, if a Beneficiary dies after the Participant but before being paid by the Plan, the Plan
shall pay the Beneficiary’s estate.

     (c) Changing Beneficiaries. A Beneficiary designation may be changed by the
Participant at any time and without the consent of any previously designated Beneficiary. However,
if the Participant is married, the Participant’s Spouse shall be the Participant’s 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 the
Company. If the Participant has designated his or her Spouse as a primary or contingent
Beneficiary, and the Participant and Spouse later divorce (or their marriage is annulled), then the
former Spouse will be treated as having pre-deceased the Participant for purposes of interpreting a
Beneficiary designation form completed prior to the divorce or annulment; this provision will apply
only if the Company is notified of the divorce or annulment before payment to the former Spouse is
made.

     (d) “Spouse” shall mean the individual to whom a Participant is lawfully married
according to the laws of the state of the Participant’s domicile.

     (e) 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 Code §2518(b) 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.

ARTICLE IV

Administration, Amendment and Termination

4.1 The Management Development and Compensation Committee.

     The Plan shall be administered by the Management Development and Compensation Committee (the
“Committee”) of the Company’s Board of Directors. All administrative duties, including but not
limited to, the power to interpret the Plan and to decide any dispute, shall be carried out by the
Committee, which shall have full discretion and authority hereunder. All claims under the Plan
shall be filed with the Company and shall be decided by the Committee. The decisions made by the

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Committee shall be final and binding on all persons having or claiming to have rights under the
Plan.

4.2 Termination or Amendment of Plan.

     The Plan may be terminated or amended at any time through action of the Company’s Board of
Directors. No termination or amendment, however, shall reduce the payments (a) to a Participant or
Beneficiary where a Participant has already died or reached Retirement, (b) to which a Participant
is or may become entitled, based on such Participant’s Service and Annual Director’s Retainer as
determined on the effective date of such termination or amendment, or (c) to which a Participant is
or may become entitled pursuant to section 2.3 as a result of a change of control. The termination
of the Plan shall not affect the timing of any benefit payments; payments after the Plan has
terminated will be made at the time(s) specified in Articles II and III.

ARTICLE V

Miscellaneous

5.1 Inalienability of Payments.

     No Participant shall have the right to assign, transfer, hypothecate, encumber or anticipate
his or her interest in any payments under the Plan, nor shall the payments under the Plan be
subject to any legal process to levy upon or attach such payments for any claim against the
Participant, Spouse, or Beneficiary.

5.2 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 the Company, 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 the Company
to a Participant; or

     (b) If to a Participant or Spouse, at the address the Participant has furnished to the Company
in writing.

     (c) If to a Beneficiary, at the address the Participant has furnished to the Company in
writing for such Beneficiary, unless the Beneficiary has furnished his or her own address to the
Company.

Any such notice to a Participant, Spouse, or Beneficiary shall be deemed to have been given as of
the third day after deposit in the United States Postal Service, postage

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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.

5.3 Disposition of Unclaimed Payments.

     Any communication, statement or notice addressed to a Participant at his or her last post
office address, as provided to the Company under section 5.2, will be binding on the Participant,
Spouse, or Beneficiary for all purposes of the Plan. If the Company cannot ascertain the
whereabouts of any person to whom a payment is due under the Plan within three years from the date
such payment is due, such payment shall be cancelled on the records of the Plan and the amount
thereof forfeited to the Company.

5.4 Administrative Delays.

     The Committee may delay any payment from this Plan for as short a period as is
administratively necessary. For example, a delay may be imposed upon all payments from the Plan
when there is a change of recordkeeper, and a delay may be imposed on payments to any recipient
until they have provided the information needed for tax withholding and tax reporting, as well as
any other information reasonably requested by the Committee.

5.5 409A Noncompliance.

     To the extent that the Company takes any action that causes a violation of Code §409A or fails
to take reasonable actions required to comply with Code §409A, the Company shall pay an additional
amount (the “gross-up”) to the individual(s) who are subject to the penalty tax under Code
§409A(a)(1) that is sufficient to put the individual in the same after-tax position he or she would
have been in had there been no violation of Code §409A. The Company shall not pay a gross-up if
the cause of the violation of Code §409A is the recipient’s failure to take reasonable actions
(such as failing to timely provide the information required for tax withholding or failing to
timely provide other information reasonably requested by the Committee — with the result that the
delay in payment violates Code §409A). Any gross-up will be made as soon as administratively
convenient after the Committee determines the gross-up is owed, and no later than the
end of the calendar year immediately following the calendar year in which the additional taxes are
remitted. However, if the gross-up is due to a tax audit or litigation addressing the existence or
amount of a tax liability, the gross-up will be paid as soon as administratively convenient after
the litigation or audit is completed, and no later than the end of the calendar year following the
calendar year in which the audit is completed or there is a final and non-appealable settlement or
other resolution of the litigation.

5.6 Gender.

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

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5.7 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.

5.8 Governing Law.

     The Plan shall be governed by the laws of the State of Texas, ignoring any conflicts-of-law
provisions.

Dated: November 20, 2008

	 	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	APACHE CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Cheri L. Peper
 

Cheri L. Peper

Corporate Secretary
	 	 	 	By:
	 	/s/ Margery M. Harris
 

Margery M. Harris

Vice President, Human Resources
	 	   

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