Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

  EXHIBIT 10.18    
    

 CIMAREX ENERGY CO.  

 DEFERRED COMPENSATION PLAN  

 FOR NONEMPLOYEE DIRECTORS  

 Effective as of May 19, 2004

Amended and Restated, Effective as of January 1, 2009  

 

 
 

  TABLE OF CONTENTS    
    

						
	 
	 	 
	 	Page 
	  ARTICLE I DEFINITIONS
	 	 1
	 	 1.1
	 	  "ACCOUNT"
	 	1
	 	 1.2
	 	  "ADMINISTRATOR"
	 	1
	 	 1.3
	 	  "BENEFICIARY"
	 	1
	 	 1.4
	 	  "BOARD"
	 	1
	 	 1.5
	 	  "CODE"
	 	1
	 	 1.6
	 	  "COMPANY"
	 	1
	 	 1.7
	 	  "COMMITTEE"
	 	1
	 	 1.8
	 	  "COMMON STOCK"
	 	1
	 	 1.9
	 	  "DEFERRED COMPENSATION UNITS"
	 	1
	 	 1.10
	 	  "DIRECTOR"
	 	1
	 	 1.11
	 	  "DIRECTOR'S FEES"
	 	1
	 	 1.12
	 	  "ELIGIBLE DIRECTOR"
	 	1
	 	 1.13
	 	  "PARTICIPANT"
	 	2
	 	 1.14
	 	  "PLAN"
	 	2
	 	 1.15
	 	  "RESTRICTED STOCK"
	 	2
	 	 1.16
	 	  "UNFORESEEABLE EMERGENCY"
	 	2
	  ARTICLE II DEFERRALS
	 	

2
	 	 2.1
	 	  DEFERRAL ELECTIONS
	 	2
	 	 2.2
	 	  ALLOCATION OF DEFERRALS
	 	2
	 	 2.3
	 	  CHANGES IN DEFERRAL ELECTIONS
	 	2
	 	 2.4
	 	  ACCOUNTING
	 	2
	  ARTICLE III ACCOUNTS
	 	

3
	 	 3.1
	 	  ESTABLISHMENT AND NATURE OF PARTICIPANT ACCOUNTS
	 	3
	 	 3.2
	 	  ACCOUNT EARNINGS
	 	3
	 	 3.3
	 	  CHANGE IN OUTSTANDING SHARES
	 	3
	 	 3.4
	 	  ACCOUNT STATEMENTS
	 	3
	  ARTICLE IV VESTING
	 	

3
	  ARTICLE V DISTRIBUTIONS
	 	

4
	 	 5.1
	 	  TIMING AND FORM OF DISTRIBUTION
	 	4
	 	 5.2
	 	  CHANGE OF CONTROL
	 	4
	 	 5.3
	 	  UNFORESEEABLE EMERGENCY
	 	6
	 	 5.4
	 	  PAYMENT OF BENEFITS FOLLOWING DEATH
	 	6
	 	 5.5
	 	  ALTERNATE TIME OF DISTRIBUTION
	 	6
	  ARTICLE VI ADMINISTRATION
	 	

6
	 	 6.1
	 	  PLAN ADMINISTRATION
	 	6
	 	 6.2
	 	  CLAIMS PROCEDURE
	 	7
	 	 6.3
	 	  EXPENSES
	 	7
	  ARTICLE VII AMENDMENT, MODIFICATION AND TERMINATION
	 	

7
	  ARTICLE VIII MISCELLANEOUS
	 	

7
	 	 8.1
	 	  UNFUNDED PLAN
	 	7
	 	 8.2
	 	  WITHHOLDING FOR TAXES AND OTHER DEDUCTIONS
	 	8
	 	 8.3
	 	  NO RIGHT TO DIRECTORSHIP
	 	8
	 	 8.4
	 	  NO RIGHTS AS A STOCKHOLDER. 
	 	8
	 	 8.5
	 	  ALIENATION PROHIBITED
	 	8
	 	 8.6
	 	  GENERAL LIMITATION OF LIABILITY
	 	8
	 	 8.7
	 	  APPLICABLE LAW
	 	8
	 	 8.8
	 	  SUCCESSORS AND ASSIGNS
	 	8
	 	 8.9
	 	  SECTION 409A SAVINGS CLAUSE. 
	 	8

i

 

  DEFERRED COMPENSATION PLAN

FOR NONEMPLOYEE DIRECTORS  

 PREAMBLE  

        CIMAREX ENERGY CO., a Delaware corporation (the "Company"), adopted the Cimarex Energy Co. Deferred Compensation Plan for
Nonemployee Directors (the "Plan"), effective as of May 19, 2004 (the "Effective Date"), to permit nonemployee directors of its Board of Directors to defer receipt of a portion of their
anticipated Director's Fees. The Company hereby amends the Plan, effective as of January 1, 2009, to bring the Plan into compliance with the applicable provisions of section 409A of the
Internal Revenue Code. 

 ARTICLE I  

 DEFINITIONS  

        Whenever used herein, the following terms shall have the respective meanings set forth below, unless the context clearly indicates
otherwise. In addition, unless some other meaning or intent is apparent from the context, the plural shall include the singular and vice versa; and masculine, feminine, and neuter words shall be used
interchangeably. 

        1.1   "Account" means, with respect to each Participant, the Cash Account and the Deferred Compensation Unit Account
established pursuant to ARTICLE III below. 

        1.2   "Administrator" means the Company's Human Resource Officer. 

        1.3   "Beneficiary" means the person, trust or other entity designated by the Participant in accordance with Section 5.4
below to receive payment under the Plan in the event of the Participant's death. If the Participant fails to designate a Beneficiary, or if all of the Participant's designated Beneficiaries predecease
the Participant, then the Participant's Beneficiary shall be his or her estate. 

        1.4   "Board" means the Board of Directors of the Company. 

        1.5   "Code" means the Internal Revenue Code of 1986, as now or hereafter amended and in effect. 

        1.6   "Company" means Cimarex Energy Co., a Delaware corporation. 

        1.7   "Committee" means the Governance Committee of the Board or such other committee, officer or person as the Board may
designate from time to time. 

        1.8   "Common Stock" means the Company's common stock, $0.01 par value, and, after substitution, such other stock as may be
substituted therefor pursuant to Section 3.3. 

        1.9   "Deferred Compensation Units" shall mean units held in a notional account in which each unit represents a value
equivalent to one share of Common Stock. 

        1.10 "Director" means a member of the Board. 

        1.11 "Director's Fees" means the annual retainer, attendance fees, committee membership fees, or other compensation, paid in
cash or Restricted Stock by the Company to a Director for services as a Director. Director's Fees shall not include expense reimbursements. 

        1.12 "Eligible Director" means a Director who is not a common-law employee of the Company or any subsidiary of
the Company. A Director who is not a common-law employee of the Company or any subsidiary of the Company becomes an Eligible Director automatically on the date he or she is elected to the
Board. 

1

 

        1.13 "Participant" means an Eligible Director who has elected to defer payment of all or a portion of his or her Director's
Fees under the Plan. A person remains a Participant so long as he or she has an Account balance under the Plan, whether or not such person remains an Eligible Director. 

        1.14 "Plan" means the Cimarex Energy Co. Deferred Compensation Plan for Nonemployee Directors, as set forth herein,
together with all amendments hereto. 

        1.15 "Restricted Stock" shall have the meaning ascribed to such term by the Cimarex Energy Co. 2002 Stock Incentive
Plan. 

        1.16 "Unforeseeable Emergency" means a severe financial hardship to the Participant resulting from a sudden and unexpected
illness or accident of the Participant, of the Participant's spouse, or of a dependent (as defined in Code section 152(a), without regard to subsections 152(b)(1), (b)(2), and (d)(1)(B))
of the Participant, loss of the Participant's property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance, for example, as a result of
a natural disaster), or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant. In addition, the imminent foreclosure, or
eviction from the Participant's primary residence, the need to pay for medical expenses (including non-refundable deductibles as well as the costs of prescription medications), and the
need to pay funeral expenses of a spouse, beneficiary, or dependent (as defined in Code section 152(a), without regard to subsections 152(b)(1), (b)(2), and (d)(1)(B)) may also
constitute an Unforeseeable Emergency. The need to pay college tuition and the desire to purchase a home will not be considered to constitute Unforeseeable Emergencies. 

 ARTICLE II  

 DEFERRALS  

        2.1    Deferral Elections.    An Eligible Director may elect to defer all or any portion of the Director's Fees that
he or she anticipates earning. The election shall be made and filed with the Company no later than the last day of the calendar year immediately preceding the calendar year in which the Director
begins performing the services for which Director's Fees that are payable in cash are earned. In the case of Director's Fees payable in Restricted Stock, the election shall be made no later than the
last day of the calendar year immediately preceding the calendar year of the annual meeting following which such shares of Restricted Stock are awarded. Such elections shall be made by filing a
written notice with the Company in such form, in such manner and by such time as the Administrator shall specify. Notwithstanding the foregoing, the initial elections under this Plan shall be made not
later than thirty days after the Effective Date. Notwithstanding the foregoing, a Director who first becomes an Eligible Director during a calendar year may, within thirty days following the date on
which he or she becomes an Eligible Director, elect to defer Director's Fees that he or she has not yet earned (as of the date such Director files a deferral election with the Company). Once
made, an election to defer shall be irrevocable. 

        2.2    Allocation of Deferrals.    Deferrals of cash compensation shall be allocated to the Cash account. Deferrals of
Restricted Stock shall be treated as an election to exchange the number of shares of Restricted Stock subject to the election for an equal number of Deferred Compensation Units, which shall be
allocated to the Deferred Compensation Unit account. 

        2.3    Changes in Deferral Elections.    Deferral elections shall be irrevocable. 

        2.4    Accounting.    The Company shall credit a Participant's deferrals during a calendar year to the Account
established for such Participant for such year, pursuant to ARTICLE III below, as of the date on which the amount deferred would otherwise have been paid or made available to the Participant. 

2

 
 ARTICLE III  

 ACCOUNTS  

        3.1    Establishment and Nature of Participant Accounts.    The Company shall establish and maintain, in the name of
each Participant, Accounts to reflect the Participant's interest under the Plan. A separate Account shall be established and maintained for each Participant for each year in which such Participant
makes deferrals under the Plan. Each such Account may, depending on the Eligible Director's election, include the following subaccounts: Cash Account and a Deferred Compensation Unit Account. The
maintenance of such Accounts is for recordkeeping purposes only. No funds or other assets of the Company shall be segregated or attributable to the amounts that may be credited to a Participant's
Accounts from time to time, but rather benefit payments under the Plan shall be made solely from the general assets of the Company at the time any such payments become due and payable. 

        3.2    Account Earnings.    

        (a)    Cash Account.    All amounts credited to a Participant's Cash Account shall bear interest from the date as of
which such amounts are credited to the Cash Account through the date on which they are actually paid to the Participant. The Company shall credit such interest to each of a Participant's Cash Accounts
as of the last day of each calendar quarter; provided, however, that interest for the quarter in which an Account is distributed shall be credited to that Account no later than the date of
distribution. The rate of interest earned by each Account for a calendar quarter shall be based on the average 10-year U.S. Treasury note rate for the immediately preceding calendar
quarter, plus one percent. 

        (b)    Deferred Compensation Unit Account.    Deferrals credited to a Participant's Deferred Compensation Unit Account
will be credited in units, each of which is equal in value to one share of Common Stock, in accordance with standard recordkeeping procedures. If the Company pays a dividend on its Common Stock and
the Participant is in active service on the Board on the date the dividend is paid, the Company shall pay the dividend to the Participant in cash on the same date it pays the dividend to its
shareholders. If the Company pays a dividend on its Common Stock and the Participant is not in active service on the Board on the date the dividend is paid, the Company shall credit to the
Participant's Cash Account an amount that is equal to the product of the dividend per share times the number of Deferred Compensation Units credited to the Participant's Deferred Compensation Unit
Account on the record date for the dividend. The amount shall be payable at the time determined under ARTICLE V. 

        3.3    Change in Outstanding Shares.    In the event of any change in outstanding Common Stock by reason of any stock
dividend or split, recapitalization, merger, consolidation or exchange of shares or other similar corporate change, the Board shall make such adjustments, if any, that it deems appropriate in the
number of Deferred Compensation Units then credited to the Participants' Accounts. Any and all such adjustments shall be made in accordance with Code sections 409A and 424. Any and all such
adjustments shall be conclusive and binding upon all parties concerned. 

        3.4    Account Statements.    After the close of each calendar year, or more frequently as the Administrator, in its
sole discretion, determines, the Company shall furnish each Participant with a statement of the value of his or her Accounts. 

 ARTICLE IV  

 VESTING  

        A Participant shall be fully vested in his or her Accounts at all times, subject only to his or her status as a general unsecured
creditor of the Company in the event of the Company's insolvency or 

3

 

bankruptcy
and provided that Deferred Compensation Units shall become vested at the same time or times that the restrictions on the Restricted Stock for which they were exchanged would have lapsed. 

 ARTICLE V  

 DISTRIBUTIONS  

        5.1    Timing and Form of Distribution.    

        (a)   Except
as provided otherwise in this ARTICLE V, each of the Participant's Accounts shall be distributed or commence to be distributed to the Participant on the
distribution date specified for such Account by the Participant. Subject to subsection 5.1(c) below, the Participant shall specify the date on which each of his or her Accounts shall be
distributed or shall commence to be distributed at the time he or she makes, and as a part of, an election to defer the Director's Fees credited to that Account. The Participant may make a separate
election with respect to each of his or her Accounts. 

        (b)   Except
as provided otherwise in this ARTICLE V, each of the Participant's Accounts shall be distributed to the Participant in the form elected for such Account by the
Participant. The Participant may elect to have an Account distributed in either a lump sum or in annual installments over a period not to exceed five years. Subject to subsection 5.1(c) below,
the Participant shall specify the form in which each of his or her Accounts is to be distributed at the time such Participant makes, and as a part of, an election to defer the Director's Fees credited
to that Account. The Participant may make a separate election with respect to each of his or her Accounts. If the Participant elects installment distributions, for purposes of Code section 409A
the installments shall be treated as a single payment. 

        (c)   A
Participant may change the timing and/or form of distribution for one or more of his or her Accounts at any time, so long as such change is requested in writing (and
such request is filed with the Company) at least twelve months prior to the date on which any payment is scheduled to be distributed or to commence to be distributed, the changed election is not
effective for twelve months after the date it is made and filed with the Administrator, and the new payment date is at least sixty months after the original payment date; provided, however, that the
Participant may not make more than one such change. Any change that is requested by a Participant less than twelve months prior to the date on which any payment is scheduled to be distributed or to
commence to be distributed, or a second change to the timing and/or form of distribution for any of the Participant's Accounts, shall be null and void. 

        5.2    Change of Control.    

        (a)   Notwithstanding
Section 5.1 above, upon the closing of the transactions that constitute a "Change of Control," as defined in subsection 5.2(b) below, all
account balances shall be fully vested. If the "Change of Control" is also a change of control within the meaning of Code Section 409A all Account balances shall be paid in full within
30 days after the Change of Control on a date selected by the Company. Otherwise, Account balances shall be paid according to the Participant's election under Section 5.1. 

        (b)   For
purposes of this Section 5.2, "Change of Control" means the occurrence of any of the following events on or after the January 1, 2009, (the "Effective
Date") provided that in the event Code section 409A applies to payments under this Plan, a Change of Control shall be deemed to have occurred only if the event is also a change of control
within the meaning of Code section 409A and the regulations and other guidance promulgated thereunder or not inconsistent therewith. 

        (i)    The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act")) (a "Person") of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (x) the then outstanding
shares of common stock (the 

4

 

"Common
Stock") of the Company (the "Outstanding Company Common stock") or (y) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in
the election of directors (the "Outstanding Company Voting Securities"); provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in
Control: (A) any acquisition directly from the Company, (B) any acquisition by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company, (D) any acquisition by any corporation pursuant to a transaction that complies with clauses (A) and (B) of
paragraph (iii) below; or 

        (ii)   During
any period of twelve months beginning after the Effective Date, individuals who, as of the Effective Date, constitute the Board (the "Incumbent Board") cease for
any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director at the beginning of such twelve-month period, whose election, appointment or
nomination for election by the Company's stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or 

        (iii)  The
closing of a reorganization, share exchange or merger (a "Business Combination"), in each case, unless, following such Business Combination, (A) all or
substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Voting Securities immediately prior to such
Business Combination will beneficially own, directly or indirectly, more than 40% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation
which as a result of such transaction will own the Company through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of
the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be and (B) at least a majority of the members of the board of directors of the corporation
resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business
Combination or were elected, appointed or nominated by the Board; or 

        (iv)  The
closing of (1) a complete liquidation or dissolution of the Company or, (2) the sale or other disposition of all or substantially all of the assets of
the Company, other than to a corporation, with respect to which following such sale or other disposition, (A) more than 40% of, respectively, the then outstanding shares of common stock of such
corporation and the combined voting power of the then
outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such sale or other
disposition in substantially the same proportion as their ownership, immediately prior to such sale or other disposition, of the Outstanding Company Common Stock and Outstanding Company Voting
Securities, as the case may be, and (B) at least a majority of the members of the board of directors of such corporation were members of the Incumbent Board at the time of the execution of the
initial agreement, or of the action of the Board, providing for such sale or other disposition of assets of the Company or were elected, appointed or nominated by the Board. 

5

 

        5.3    Unforeseeable Emergency.    Any Participant, who the Committee determines has experienced (or would experience,
if a withdrawal were not permitted) an Unforeseeable Emergency, shall be entitled to withdraw such amount from his or her Accounts that is reasonably necessary to satisfy the emergency need plus an
amount necessary to pay the taxes (which may include Federal, state, local, or foreign income taxes or penalties) reasonably anticipated as a result of the distribution. The determination of the
amount reasonably necessary to satisfy the emergency need shall take into account any additional compensation that the Participant is expected to receive from the cancellation of deferrals under this
Plan provided for below. A Participant shall be required to submit a written request for such a withdrawal, together with such supporting documentation as the Committee may require, to the Committee
for review and approval. Such request may specify the Account(s) from which the Participant wishes to make the withdrawal. If the request fails to do so, or if the balances in the specified Account(s)
are insufficient to cover such withdrawal, then any amounts for which no designation has been made (or which are in excess of the designated balances) shall be withdrawn from the Participant's
Accounts, from oldest to newest, until the withdrawal amount is satisfied. Upon the approval of a Participant's request for such a withdrawal, the Participant's deferrals under the Plan shall be
cancelled. A distribution under this Section 5.3 shall occur within 10 days (on a date determined by the Company) after the Committee approves the Participant's request. Notwithstanding
the foregoing, distribution under this Section 5.3 may not be made to the extent that the Unforeseeable Emergency is or may be relieved through reimbursement or compensation from insurance or
otherwise, by liquidation of the Participant's assets (to the extent the liquidation would not itself cause severe financial hardship) or by cessation of deferrals under the Plan. Notwithstanding the
foregoing, any distribution under this section 5.3 shall be made in compliance with Code section 409A, the regulations and other guidance promulgated thereunder. 

        5.4    Payment of Benefits Following Death.    Upon the death of a Participant, any undistributed balances in the
Participant's Accounts shall be distributed to the Participant's Beneficiary(ies) in a lump sum in the calendar year following the calendar year in which the Participant died. A Participant shall
designate a Beneficiary or Beneficiaries on a form (filed with the Company) as the Administrator shall prescribe. The Participant may change the designation
(i.e., the identity) of a Beneficiary at any time by filing a new Beneficiary designation with the Company. Any such change shall be effective
only if the Participant is alive at the time the Company receives the changed designation. The most recent beneficiary designation on file with the Company shall be controlling. 

        5.5    Alternate Time of Distribution.    Notwithstanding anything in this Plan to the contrary, the Company may make
payments under this Plan as provided under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii) (conflicts of interest), (j)(4)(vi) (payment of employment
taxes), or (j)(4)(vii) (income inclusion under section 409A). 

 ARTICLE VI  

 ADMINISTRATION  

        6.1    Plan Administration.    

        (a)   The
Administrator shall have and exercise all discretionary and other authority to control and manage the operation and administration of the Plan, except such authority
as is specifically allocated otherwise by or under the terms hereof, and shall have the power to take any action necessary or appropriate to carry out such responsibilities. Without limiting the
foregoing, and in addition to the authority and duties specified elsewhere herein, the Administrator shall have the discretionary authority to construe, interpret and apply the terms and provisions of
the Plan; to prescribe such rules and regulations, and issue such directives, as it deems necessary or appropriate for the administration of the Plan; and to make all other determinations and
decisions as it deems necessary or appropriate for the administration of the Plan. The Administrator may correct any defect or supply any omission or 

6

 

reconcile
any inconsistency in the Plan in the manner and to the extent it deems expedient. Decisions of the Administrator shall be final and binding upon the Participants, and their legal
representatives and beneficiaries. 

        (b)   No
Director may decide, determine or act on any matter that affects the distribution, nature or method of settlement of solely his or her Accounts under the Plan, except
in exercising an election available to that Director in his or her capacity as a Participant. 

        6.2    Claims Procedure.    A Participant or Beneficiary, as applicable, shall file any claim for payments under the
Plan with the Administrator, which shall consider such claim and notify the claimant of its decision with respect thereto within ninety (90) days (or within such longer period, not to exceed
one hundred
eighty (180) days, as the Administrator determines is necessary to review the claim; provided that the Administrator notifies the claimant of the extension within the original ninety
(90) day period). If the claim is denied, in whole or in part, the claimant may appeal such denial to the Committee, provided he or she does so within sixty (60) days of receiving the
Administrator's determination. The Committee shall consider the appeal and notify the claimant of its decision with respect thereto within sixty (60) days (or within such longer period, not to
exceed one hundred twenty (120) days, as the Committee determines is necessary to review the appeal; provided that the Committee notifies the claimant of the extension within the original sixty
(60) day period). The Committee's decision upon any appeal shall be final and binding on all parties. 

        6.3    Expenses.    All expenses and costs incurred in connection with the administration and operation of the Plan
shall be borne by the Company. 

 ARTICLE VII  

 AMENDMENT, MODIFICATION AND TERMINATION  

        This Plan may be amended, modified or terminated at any time by the Committee; provided, however, that no such amendment, modification
or termination may adversely affect the rights of any Participant, without his or her consent, to any benefit under the Plan to which he or she was entitled prior to the effective date (or, if later,
the adoption date) of such amendment, modification or termination. Notwithstanding the foregoing, the Plan may be amended or modified in any manner necessary to comply with the provisions of the
Internal Revenue Code, as such provisions may be modified on or after May 19, 2004. In the event of the termination of this Plan pursuant to this ARTICLE VII, no further elections may be made
under the Plan and no existing elections may be changed. Following termination of the Plan, Accounts shall be paid in accordance with one of the events specified in Treas. Reg.
Section 1.409A-3(j)(4)(ix). If none of the conditions or events specified in Treas. Reg. Section 1.409A-3(j)(4)(ix) applies, following termination of the Plan, a
Participant's Accounts shall be distributed to the Participant at the time or times previously elected by the Participant under ARTICLE V. 

 ARTICLE VIII  

 MISCELLANEOUS  

        8.1    Unfunded Plan.    The Plan shall be unfunded and all benefits under the Plan shall be paid solely from the
Company's general assets. The Plan constitutes a mere promise by the Company to make benefit payments in the future. No Participant or Beneficiary shall have any preferred claim to the amounts
credited to a Participant's Accounts or to any assets of the Company on account of a Participant's participation in the Plan prior to the time such amounts are actually paid to the Participant or
Beneficiary, and then only to the extent of any such payment. Participants and Beneficiaries shall have the status of general unsecured creditors of the Company. 

7

 

        8.2    Withholding for Taxes and Other Deductions.    The Company shall have the right to deduct from any deferral to
be made or any distribution or withdrawal to be paid under the Plan any applicable taxes that it is required by law to withhold and any amounts owed by the Participant to the Company but no more than
the amount permitted under Treas. Reg. Section 1.409A-3(j)(9)(xiii), in the case of amounts other than required tax withholding. 

        8.3    No Right to Directorship.    Nothing contained in the Plan or in any Deferral Agreement executed by a
Participant in connection herewith shall be construed to (a) confer upon any Director any right to continue as a Director, (b) restrict in any way the Company's right to terminate or
change the terms or conditions of any Director's directorship at any time, or (c) confer upon any Director or any other person any claim or right to any distribution under the Plan except in
accordance with its terms. 

        8.4    No Rights as a Stockholder.    A Participant shall have no voting or any other rights as a stockholder of the
Company with respect to the Deferred Compensation Units. Upon payment of the Deferred Compensation Units and the transfer of shares of Common Stock to the Participant, the Participant shall have all
of the rights of a stockholder of the Company. The Participant's right to receive Common Stock under this Agreement shall be no greater than the right of any unsecured general creditor of the Company. 

        8.5    Alienation Prohibited.    Neither the Participant nor any Beneficiary shall have any right or ability to
alienate, sell, transfer, assign, pledge or encumber, either voluntarily or involuntarily, any amount due or expected to become due under the Plan. Nor shall any such amounts be subject to
garnishment, execution, levy or other seizure by any creditor of a Participant or Beneficiary. 

        8.6    General Limitation of Liability.    Neither the Company, the Board, the Committee, the Administrator nor any
other person shall be liable, either jointly or severally, for any act or failure to act or for anything whatsoever in connection with the Plan, or the administration thereof, except, and only to the
extent of, liability imposed because of willful misconduct, gross negligence or bad faith. All benefit payments shall be made solely from the Company's general assets. 

        8.7    Applicable Law.    The Plan shall be construed and its validity determined in accordance with the laws of the
State of Delaware to the extent such laws are not preempted by federal law. 

        8.8    Successors and Assigns.    The terms and conditions of the Plan, as amended and in effect from time to time,
shall be binding upon the Company's successors and assigns, including without limitation any entity into which the Company may be merged or with which the Company may be consolidated. 

        8.9    Section 409A Savings Clause.    It is the intention of the Company that payments or benefits payable
under this Plan not be subject to the additional tax imposed pursuant to Section 409A of the Code, and the provisions of this Plan shall be construed and administered in accordance with such
intent. To the extent such potential payments could become subject to Code Section 409A, the Company shall be entitled to amend the Plan with the goal of giving the participants the economic
benefits described herein in a manner that does not result in such tax being imposed 

        Dated:
December 5, 2008. 

					
	 	 	 CIMAREX ENERGY CO.
	

 	
 	
By:	
 	
/s/ F. H. Merelli

 
	 	 	Name:	 	F. H. Merelli
	 	 	Title:	 	President and Chief Executive Officer

8

QuickLinks

EXHIBIT 10.18

TABLE OF CONTENTSQuickLinks
 -- Click here to rapidly navigate through this document

 
 

  EXHIBIT 10.19    
    

 CIMAREX ENERGY CO.  

 SUPPLEMENTAL SAVINGS PLAN  

 (amended and restated, effective as of January 1, 2009)  

 

 
 

  TABLE OF CONTENTS    
    

				
	 
	 	Page 
	 RECITALS
	 	1
	 ARTICLE I Definitions
	 	1
	 	 "Beneficiary"
	 	1
	 	 "Change in Control"
	 	1
	 	 "Code"
	 	2
	 	 "Committee"
	 	2
	 	 "Company"
	 	2
	 	 "Company Matching Contributions"
	 	3
	 	 "Compensation"
	 	3
	 	 "Disability"
	 	3
	 	 "Election Agreement"
	 	3
	 	 "FICA"
	 	3
	 	 "401(k) Plan"
	 	3
	 	 "Measurement Fund"
	 	3
	 	 "Participant"
	 	3
	 	 "Participant Deferrals"
	 	3
	 	 "Plan Account"
	 	3
	 	 "Plan Year"
	 	3
	 	 "Prior Key Balances"
	 	3
	 	 "Retirement"
	 	3
	 	 "Trust"
	 	3
	 	 "Trust Agreement"
	 	3
	 	 "Trustee"
	 	3
	 	 "Valuation Date"
	 	3
	 ARTICLE II Eligibility and Participation
	 	4
	 	 Eligibility and Participation
	 	4
	 	 Enrollment
	 	4
	 	 Failure of Eligibility
	 	4
	 ARTICLE III Contributions
	 	4
	 	 Participant Deferrals
	 	4
	 	 Excess Participant Deferrals
	 	5
	 	 Company Matching Contributions
	 	5
	 	 FICA
	 	6
	 ARTICLE IV Valuation and Accounting
	 	6
	 	 Plan Accounts
	 	6
	 	 Crediting and Debiting of Plan Accounts
	 	7
	 	 Election of Measurement Funds
	 	7
	 	 Method of Crediting/Debiting Additional Amounts
	 	7
	 	 No Actual Investment
	 	8
	 	 Designation of Measurement Funds
	 	8
	 ARTICLE V Distributions
	 	8
	 	 Time of Distribution
	 	8
	 	 Method and Amount of Distribution
	 	8
	 	 Distribution Upon Change in Control
	 	9
	 	 Source of Payments
	 	9
	 	 Beneficiaries
	 	9
	 	 Withholding
	 	9

i

 

				
	 
	 	Page 
	 ARTICLE VI Administration
	 	9
	 	 The Committee—Plan Administrator
	 	9
	 	 Committee to Administer and Interpret Plan
	 	10
	 	 Organization of Committee
	 	10
	 	 Indemnification
	 	10
	 	 Agent for Process
	 	10
	 	 Determination of Committee Final
	 	10
	 	 The Trustee
	 	10
	 ARTICLE VII Trust
	 	10
	 	 Trust Agreement
	 	10
	 	 Expenses of Trust
	 	10
	 	 Investments
	 	11
	 ARTICLE VIII Amendment and Termination
	 	11
	 	 Termination of Deferrals
	 	11
	 	 Termination of Plan
	 	11
	 	 Distribution Upon Termination
	 	11
	 	 Amendment by Company
	 	11
	 ARTICLE IX Miscellaneous
	 	11
	 	 Funding of Benefits—No Fiduciary Relationship
	 	11
	 	 Reimbursement for Certain Expenses
	 	11
	 	 Right to Terminate Employment
	 	12
	 	 Inalienability of Benefits, Participants' Status
	 	12
	 	 Claims Procedure
	 	12
	 	 Disposition of Unclaimed Distributions
	 	13
	 	 Distributions Due Minors or Incompetents
	 	13
	 	 Section 409A Savings Clause
	 	13
	 	 Governing Law
	 	14

ii

 

  CIMAREX ENERGY CO.

SUPPLEMENTAL SAVINGS PLAN  

 RECITALS  

        Cimarex Energy Co., a Delaware corporation (the "Company"), established the Cimarex Energy Co. Deferred Compensation Plan
(the "Plan") and renamed the Plan the Cimarex Energy Co. Supplemental Savings Plan, effective as of October 1, 2002. The Company amended and restated the Plan effective as of
March 3, 2003. The Company has further amended and restated the Plan, effective as of January 1, 2009 to comply with the applicable provisions of section 409A of the Internal
Revenue Code. 

        The
Company entered into an Agreement and Plan of Merger dated as of February 23, 2002 (the "Merger Agreement") among Helmerich & Payne, Inc. ("H&P"),
Helmerich & Payne Exploration and Production Co., Mountain Acquisition Co., and Key Production Company, Inc. ("Key"). Pursuant to the Merger Agreement, the parties agreed
that the Company would assume the Key Deferred Compensation Plan and extend participation in the Plan to certain identified executives of H&P. This Plan is intended to assume the Key Deferred
Compensation Plan. 

        The
Plan is intended to provide a mechanism whereby certain of the highly compensated and select management employees of the Company may defer compensation and have such amounts,
together with deemed earnings, paid out upon the participant's retirement, death, disability or other termination
of service with the Company. In addition, the Company intends that this Plan shall provide the eligible employees with deferred compensation benefits in addition to the benefits under the Cimarex
Energy Co. 401(k) Plan (the "401(k) Plan") in cases where benefits under the 401(k) Plan may be limited by applicable provisions of the Internal Revenue Code of 1986, as amended (the "Code").
The Company intends that the Plan shall be an "unfunded" plan for purposes of the Code and the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). 

 ARTICLE I

Definitions  

        Defined terms used in this Plan shall have the meanings set forth below or the same meanings as in the 401(k) Plan, as the case may be: 

        1.1   "Beneficiary"means the person or persons, trust or other entity designated by a Participant, pursuant to
Section 5.5, to receive any amounts distributable under the Plan at the time of the Participant's death. 

        1.2   "Change in Control" means the occurrence of any of the following events on or after the Effective Date of this Plan,
provided that in the event Code section 409A applies to payments under this Plan, a Change of Control shall be deemed to have occurred only if the event is also a change of control within the
meaning of Code section 409A and the regulations and other guidance promulgated thereunder or not inconsistent therewith. 

        (i)    The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act")) (a "Person") of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (x) the then outstanding
shares of common stock (the "Common Stock") of the Company (the "Outstanding Company Common stock") or (y) the combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities"); provided, however, that for purposes of this subsection (i), the following acquisitions
shall not constitute a Change in Control: (A) any acquisition directly from the Company, (B) any acquisition by the 

1

 

Company,
(C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company, (D) any acquisition by
any corporation pursuant to a transaction that complies with clauses (A) and (B) of paragraph (iii) below; or 

        (ii)   During
any period of twelve months beginning after the Effective Date, individuals who, as of the Effective Date, constitute the Board (the "Incumbent Board") cease for
any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director at the beginning of such twelve-month period, whose election, appointment or
nomination for election by the Company's stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or 

        (iii)  The
closing of a reorganization, share exchange or merger (a "Business Combination"), in each case, unless, following such Business Combination, (A) all or
substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Voting Securities immediately prior to such
Business Combination will beneficially own, directly or indirectly, more than 40% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation
which as a result of such transaction will own the Company through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business Combination of
the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be and (B) at least a majority of the members of the board of directors of the corporation
resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement, or of the action of the Board, providing for such Business
Combination or were elected, appointed or nominated by the Board; or 

        (iv)  The
closing of (1) a complete liquidation or dissolution of the Company or, (2) the sale or other disposition of all or substantially all of the assets of
the Company, other than to a corporation, with respect to which following such sale or other disposition, (A) more than 40% of, respectively, the then outstanding shares of common stock of such
corporation and the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or
indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities
immediately prior to such sale or other disposition in substantially the same proportion as their ownership, immediately prior to such sale or other disposition, of the Outstanding Company Common
Stock and Outstanding Company Voting Securities, as the case may be, and (B) at least a majority of the members of the board of directors of such corporation were members of the Incumbent Board
at the time of the execution of the initial agreement, or of the action of the Board, providing for such sale or other disposition of assets of the Company or were elected, appointed or nominated by
the Board. 

        1.3   "Code" means the Internal Revenue Code of 1986, as amended. 

        1.4   "Committee" means the administrative committee provided for in Section 6.1. 

        1.5   "Company" means Cimarex Energy Co. and any successor thereto. 

2

 

        1.6   "Company Matching Contributions" means the contributions made by the Company and allocated to Plan Accounts pursuant to
Section 3.3. 

        1.7   "Compensation" means the employee's "compensation" as defined for purposes of the 401(k) Plan, but without giving effect
to the limit on compensation imposed by Code section 401(a)(17). 

        1.8   "Disability" shall have the same meaning given to "Total and Permanent Disability" from time to time in the Company's
Long Term Disability Plan. 

        1.9   "Election Agreement" means an application for participation in the Plan, execution of which by an eligible employee is
required under Article II for Plan participation. 

        1.10 "FICA" shall mean the Federal Insurance Contributions Act. 

        1.11 "401(k) Plan" means the Cimarex Energy Co. 401(k) Savings Plan. 

        1.12 "Measurement Fund" means an investment vehicle designated by the Committee for the purpose of determining additional
amounts to be credited to, or amounts to be debited from, Plan Accounts. 

        1.13 "Participant" means any eligible employee of the Company selected to participate in this Plan by the Committee who has
completed an Election Agrement and is entitled to the distribution of benefits hereunder. 

        1.14 "Participant Deferrals" means the amounts of a Participant's Compensation that the elects to defer and have allocated to
the Plan Account pursuant to Sections 3.1 and 3.2. 

        1.15 "Plan Account" means a bookkeeping acocunt maintained by the Company, which shall show at all times the amounts of
Participant Deferrals made by a Participant, the Company Matching Contributions and the amounts deemed debited and credited from time to time based on the performance of the Measurement Funds. 

        1.16 "Plan Year" means the twelve month period on which the Plan records are kept, which shall be the calendar year, except
that the first Plan Year shall be the period from October 1, 2002 through December 31, 2002. 

        1.17 "Prior Key Balances" means the bookkeeping account balances transferred to this Plan from the Key Production
Company, Inc. Deferred Compensation Plan. 

        1.18 "Retirement" means the employee's termination of employment with the Company after the normal retirement age established
by the Company, which is presently age 62. Notwithstanding the foregoing, an employee may be permitted, by the Company's Board of Directors, to retire at an earlier age, for purposes of the Plan. 

        1.19 "Trust" means the trust created by the Company that may be used to provide funding for the distribution of benefits
hereunder in accordance with the provisions of the Plan. 

        1.20 "Trust Agreement" means the written instrument pursuant to which the Trust is created. 

        1.21 "Trustee" means the bank, trust company or individual appointed by the Company pursuant to Article VII and acting
from time to time as the trustee of the Trust formed to provide benefits under the Plan. 

        1.22 "Valuation Date" means the last day of each Plan Year and any other dates as specified in section 4.2 as of which
the assets of the Trust are valued at fair market value and as of which the increase or decrease in the net worth of the Trust is allocated among Plan Accounts. 

3

 
 ARTICLE II

Eligibility and Participation  

2.1.    Eligibility and Participation.    

        From
time to time the Committee, in its sole discretion, may determine the eligibility requirements for participation and may designate those highly compensated and select management
employees of the Company to whom the opportunity to participate in this Plan shall be extended. An Employee who is selected to participate in the Plan shall commence participation as of the first day
of the calendar year following the date the Employee is selected for participation. Employees shall be eligible to participate in this Plan if they fall within a "select group of management or highly
compensated employees" of the Company within the meaning of Section 201(2) of ERISA. Notwithstanding the foregoing, pursuant to the Merger Agreement, the individuals identified in
Section 6.8(d)(i) of the Merger Agreement shall be extended the opportunity to participate in the Plan. 

2.2.    Enrollment.    

        Employees
who have been selected by the Committee to participate in the Plan shall enroll in the Plan, prior to the calendar year during which the employee will participate (or will
commence participation) in the Plan, by (a) entering into an Election Agreement with the Company, which shall contain the Participant's initial election as to the Compensation to be deferred
under the Plan and such other terms as the Company deems appropriate and necessary, (b) completing an Enrollment Form, which shall contain the Participant's election concerning the election of
a Measurement Fund or Funds, form of payment, beneficiary designation and such other information as the Company may reasonably require, and (c) completing such other forms and furnishing such
other information as the Company may reasonably require. With respect to the first year of the Plan, eligible employees shall enroll no later than October 31, 2002, which is 30 days
after the initial effective date of the Plan. A Participant shall enter into a new Election Agreement with respect to each Plan Year of participation under the Plan. 

2.3.    Failure of Eligibility.    

        If
a Participant ceases to meet the eligibility criteria as determined by the Committee for participation herein for any reason other than death or Retirement but continues to be a
Company employee, participation herein and benefits hereunder shall cease as of the first day of the calendar year following the effective date of the change in employment status, position or title
that results in termination of eligibility for participation herein. The determination of the Committee with respect to the termination of participation in the Plan shall be final and binding on all
parties affected thereby. Any benefits
accrued hereunder at the time of such change shall be distributed according to the elections in effect on the date the Participant ceases to meet the eligibility criteria and may not be changed. 

 ARTICLE III

Contributions  

3.1.    Participant Deferrals.    

        Each
Plan Year, a Participant may elect to have Participant Deferrals withheld from his Compensation and credited to his Plan Account in any whole percentage of his Compensation from
1%-50%. The maximum amount of Compensation that may be deferred and allocated to a Participant's Plan Account in any Plan Year shall be 50% of his Compensation determined, for this
purpose, on the basis of the Participant's annualized Compensation as of December 31 of the year immediately preceding the Plan Year of deferral. In addition, a Participant may elect to have
the Company withhold from any bonus payable by the Company any amount in any whole percentage up to 100% of such bonus and have such amount credited to his Plan Account as a Participant Deferral. An
election to defer a bonus shall be made on or before December 31 of the calendar year preceding the first 

4

 

calendar
year in which any services with respect to which the bonus is paid are rendered. If a Participant who was a participant in either the Key or the H&P deferred compensation plan (the "prior
plans") made an election under the prior plans to defer a bonus payable in 2003 with respect to services performed in 2002, the prior election shall be given effect under this Plan and the amount or
percentage of Compensation previously elected under the prior plans shall be deferred under this Plan. Participant Deferrals shall be deducted from a Participant's Compensation through payroll
withholding in accordance with the Participant's election at the same time that regular semi-monthly payments of Compensation are made and shall be credited to the Participant's Plan
Account at such time. 

3.2.    Excess Participant Deferrals.    

        (a)   A
Participant may elect, pursuant to his Election Agreement, to have an amount withheld from his Compensation and deferred under the Plan equal to any amount of
Participant Elective Contributions that would otherwise have been made to the 401(k) Plan pursuant to the Participant's election under the 401(k) Plan and that the Participant is prohibited from
contributing to the 401(k) Plan in order to satisfy the limitations of Code sections 401(k), 401(a)(17), 402(g), 414(v) or 415. Such amounts shall be withheld from the Participant's
Compensation and credited to the Participant's Plan Account as of the time such amounts would have been withheld from his Compensation and contributed to the 401(k) Plan but for such limitations.
Provided, however, in no event may the amount deferred under this Section 3.2(a) exceed the dollar limitation on elective deferrals under Code section 402(g) in effect on
January 1 of the calendar year of the deferral. Provided further, in no event may the sum of the amount deferred under this Section 3.2(a) and under Section 3.1 above exceed 50%
of a Participant's Compensation, excluding bonuses, for a Plan Year and 100% of a Participant's bonus payable during a Plan Year. 

        (b)   In
addition to the amounts deferred under Section 3.2(a), a Participant may elect, pursuant to his Election Agreement, to defer as a Participant Deferral an
amount equal to any amount of the Participant's Elective Contribution and the earnings attributable to such Elective Contribution under the 401(k) Plan that is to be distributed to the Participant
from the 401(k) Plan to satisfy the nondiscrimination testing applicable to the 401(k) Plan. Such amounts shall be withheld from the Participant's Compensation payable for the pay period immediately
following the date on which any such amounts are distributed to the Participant from the 401(k) Plan and credited to the Participant's Plan Account with respect to the pay period immediately following
the date on which any such amounts are distributed to the Participant from the 401(k) Plan. 

        (c)   Elections
to defer amounts under this Section 3.2 shall be made on an Election Agreement, which shall be signed and delivered to the Committee no later than
December 31 of the calendar year preceding the calendar year in which the deferrals are withheld from the Participant's Compensation and preceding the calendar year in which the services with
respect to which any deferral amount would have been paid are rendered. 

        (d)   All
such amounts deferred in accordance with this Section 3.2 shall be referred to as Participant Deferrals. 

3.3.    Company Matching Contributions.    

        For
each Plan Year, the Company may, in its sole discretion, make matching contributions on behalf of each Participant who makes contributions under Section 3.2(a) for such Plan
Year. Matching contributions shall be equal to 100% of the Participant's contributions under Section 3.2(a), up to a maximum of 5% (effective for Plan Years beginning on or after
January 1, 2008, 7%) of Compensation. The matching contributions, if any, for a Plan Year, shall not exceed 100% of the Participant's contributions under Section 3.2(a), but not more
than 5% (effective for Plan Years beginning on or after January 1, 2008, 7%) of the Participant's compensation. In addition, the Company may, in its sole discretion, make a supplemental
matching contribution on behalf of each Participant without regard to whether the Participant makes Participant Contributions under Section 3.1 or 3.2. The supplemental 

5

 

matching
contribution shall be equal to the matching contribution that the Company could have made for the Participant under the 401(k) Plan if compensation under the 401(k) Plan were not limited by
the Code minus the matching contribution actually made by the Company for the Participant under the 401(k) Plan and will only made to the extent the amount contributed to this Plan exceeds the maximum
that could be contributed to the 401(k) Plan. All Company matching contributions and Company supplemental matching contributions shall be credited to each Participant's Plan Account. Notwithstanding
the foregoing provisions, in no event shall the matching contribution made on behalf of any Participant under this Section 3.3 exceed the dollar limitation on elective deferrals under Code
section 402(g) in effect on January 1 of the calendar year of the deferral. 

        Company
matching contributions shall be subject to the following vesting schedule: 

					
	Years of Service

 
	 	Vested Percentage 	 
	Fewer than 1	 	 	0%	 
	1	 	 	25%	 
	2	 	 	50%	 
	3	 	 	75%	 
	4 or more	 	 	100%	 

Years
of Service shall be equal the number of days in the Participant's period of service divided by 365. If a fractional year is 0.50 or less, it shall be ignored. If a fractional year is 0.51 or
greater, the number shall be rounded up to the next whole year. By way of example, if the number is 3.50 or less, the
number of Years of Service shall be 3; if the number is 3.51 or greater, the number of Years of Service shall be 4. The period of service shall commence on the date the Participant was first hired by
the Company and shall end on the date the Participant is terminated. Service prior to October 1, 2002 with Key and H&P shall be included for this purpose. Notwithstanding the foregoing vesting
schedule, the Participant shall be fully vested in his or her Plan Account upon termination of employment on account of death, Disability or Retirement or upon a Change in Control. 

3.4.    FICA.    

        For
each Plan Year in which a Participant makes Participant Deferrals, the Company shall withhold from the portion of the Participant's Compensation that is not deferred under this Plan,
in a manner determined by the Company, the Participant's share of FICA and any other applicable employment taxes on the Participant Deferrals. For each Plan Year in which a Participant receives a
Company Matching Contribution, the Company shall withhold from the portion of the Participant's Compensation that is not deferred under this Plan, in a manner determined by the Company, the
Participant's share of FICA and any other applicable employment taxes on the portion of the Company Matching Contribution that is vested. In addition, as the Company Matching Contribution vests, the
Company shall withhold from the portion of the Participant's Compensation that is not deferred under this Plan, in a manner determined by the Company, the Participant's share of FICA and any other
applicable employment taxes on the portion of the Participant's Account attributable to Company Matching Contributions (and the deemed earnings thereon) that becomes vested in the Plan Year. If the
Participant's Compensation that is not deferred is not sufficient to satisfy the required withholding, the Participant shall deliver to the Company the funds necessary to comply with this
Section 3.4. All withholding of FICA under this Plan shall be done in compliance with Code section 3121(v) and the regulations promulgated thereunder. 

 ARTICLE IV

Valuation and Accounting  

4.1.    Plan Accounts.    

        The
Company shall maintain or cause to be maintained a book accounting record of the Participant's Plan Account, showing the amounts of Participant Deferrals and Company Matching 

6

 

Contributions.
Prior Key Balances shall be maintained as separate Plan Accounts and accounted for separately. 

4.2.    Crediting and Debiting of Plan Accounts.    

        In
accordance with rules and procedures established by the Committee from time to time in its sole discretion, each Participant's Plan Account shall be credited or debited with the
income or loss attributable to the Measurement Fund or Funds elected by the Participant from time to time. 

4.3.    Election of Measurement Funds.    

        At
the time each Participant makes his initial election under the Plan in accordance with Section 2.2, the Participant shall elect one or more Measurement Funds that shall be used
to determine the additional amounts, if any, to be credited to his Plan Account for the first calendar quarter or portion thereof in which he participates in the Plan and continuing thereafter, unless
changed as provided in the next sentences. All allocations among Measurement Funds shall be made in increments of at least one percent (1%). Commencing with the first calendar quarter that follows the
Participant's commencement of participation in the Plan, no later than the fifth (5th) business day preceding the last business day of the calendar quarter, the Participant may elect, by submitting an
Election Form to the Committee that is actually received and accepted by the Committee, to add or delete one or more Measurement Funds, to change the allocation of his Plan Account among Measurement
Funds, or both. Elections made according to the previous sentence shall become effective on the next business day following the Committee's actual receipt and acceptance of the Election Form and shall
continue in effect until the Participant makes a subsequent election in accordance with the preceding sentence. The Committee may permit Participants to change their elections more frequently. The
Committee may adopt additional rules and procedures for making changes that it deems, in its sole discretion, to be necessary or appropriate. If a Participant fails to elect at least one Measurement
Fund, amounts, if any, to be credited to his Plan Account shall be determined by the Measurement Fund designated by the Committee as the default Measurement Fund. Notwithstanding the foregoing,
nothing contained in this Plan shall be construed to require the Committee to make Measurement Funds available to Participants, and in lieu thereof the manner in which additional amounts may be
credited or debited from Plan Accounts may be determined by the Company or the Trustee. 

4.4.    Method of Crediting/Debiting Additional Amounts.    

        The
Trustee will determine the performance (positive or negative) of each Measurement Fund in its reasonable discretion, based on the actual performance of each Measurement Fund. Each
Plan Account will be credited or debited on a daily basis based on the performance of the Measurement Fund or Funds selected by the Participant, as determined by the Committee in its sole discretion,
as though (a) the Plan Account were invested in the Measurement Fund or Funds, in the percentages applicable to that date, as of the close of business on that date at the closing price on such
day, (b) the Participant Deferral was invested in the Measurement Fund or Funds selected by the Participant, in the percentages applicable to day, on the day the amounts are withheld from the
Participant's Compensation at the closing price on such date, and (c) any distribution made to a Participant that decreases the Plan Account ceased being invested in the Measurement Fund or
Funds, in the applicable percentages, on the business day prior to the distribution at the closing price on such date. The Company Matching Contribution, if any, for a Plan Year shall be credited to
Plan Accounts as of the close of business on the first business day of February of the Plan Year following the Plan Year to which it relates. 

7

 

 4.5.    No Actual Investment.    

        The
Measurement Funds are to be used for measurement purposes only. A Participant's election of any Measurement Fund, the crediting of additional amounts to his Plan Account, or the
debiting of amounts from his Plan Account shall not be considered or construed in any manner as an actual investment of his Plan Account in any Measurement Fund. If the Company or the Trustee chooses
to invest any funds in any one or more of the Measurement Funds, no Participant shall have any right in or to such investments. Each Participant's Plan Account shall be a bookkeeping entry only and
shall not represent in any manner an investment made on the Participant's behalf by the Company or the Trustee. Each Participant shall, at all times, remain an unsecured general creditor of the
Company. 

4.6.    Designation of Measurement Funds.    

        The
Committee shall select one or more Measurement Funds for the sole purpose of determining amounts to be credited and debited from Plan Accounts. The Committee may, in its sole
discretion, add, discontinue, or substitute one or more Measurement Funds. Any changes in the Measurement Funds shall take effect on the first day of the calendar quarter that follows by at least
thirty (30) days the date on which the Committee gives written notice to the Participants of the change. 

 ARTICLE V

Distributions  

5.1.    Time of Distribution.    

        The
amount credited to a Participant's Plan Account shall be distributed to the Participant (or his Beneficiary), or distributions shall begin, on the earliest date on which payment may
be made under Code Section 409A(a)(2)(B)(i) (the six month delay rule for specified employees) after the Participant separates from the service of the Company as defined in Code
Section 409A and the regulations and other guidance promulgated thereunder, whether such service terminates because of death, Disability, Retirement, voluntary termination or termination by the
Company. For this purpose, all Participants are treated as specified employees (as defined in Code section 409A). If the distribution is made in annual installments, each annual distribution
after the first distribution shall be made on each anniversary of the date of payment of the first distribution. Prior Key Balances shall be distributed at the time provided in the applicable plan
document or pursuant to the election that was in effect on September 30, 2002, but subject to the separation from service and timing requirements of this Section 5.1. 

5.2.    Method and Amount of Distribution.    

        (a)   Upon
the Participant's separation from the service of the Company within the meaning of Section 409A for any reason, the Participant shall be entitled to the
payment of an amount equal to the amount credited to his Plan Account as of the date of payment. Other than Change in Control, no distributions will be made prior to separation from service. 

        (b)   The
amount credited to the Participant's Plan Account shall be paid in a cash lump sum or in annual installments over a period not longer than 15 years, as the
Participant shall elect. A Participant shall elect the manner in which the entire Plan Account shall be paid at the time the Participant commences participation in the Plan. If the Participant elects
installments, the series of installments shall be treated as a single payment. A Participant may change the manner in which the Plan Account shall be paid, but may not accelerate payments in any
manner, by filing a new election with the Committee no later than the date that is twelve (12) months prior to the date on which the Plan Account is scheduled to be paid or, in the case of
installments, the date on which the first installment is to be paid. The new election shall become effective on the date that is twelve (12) months after the date the new election is filed with
the Committee. The new payment date must be at least sixty (60) months after the original payment date, or, in the case of installments, the series of installments 

8

 

must
begin at least sixty (60) months after the original commencement date. If the Participant has a separation from service for any reason prior to the effective date of a new election, the
distribution shall be made in accordance with the prior election. However, if the amount credited to the Participant's Plan Account at the time distributions are to commence is less than $10,000, the
amount shall be paid in a cash lump sum notwithstanding the Participant's election. The lump sum shall be paid on the earliest date permitted under Code Section 409A(a)(2)(B)(i) (the six month
rule for specified employees). If the period for payment of installments is 10 years, the first installment shall be 1/10th of the balance in the Participant's Plan Account valued
immediately prior to the payment date; the second
installment shall be 1/9th of the balance in the Participant's Plan Account valued immediately prior to the payment date, etc. Annual installments payable over other periods shall be determined
in the same manner. 

        (c)   Prior
Key Balances shall be distributed according to the method specified in the Participant's election in effect on September 30, 2002 but subject to the
requirements of this Section 5.2. 

5.3.    Distribution Upon Change in Control.    

        In
the event of a Change in Control of the Company, each Participant in the Plan, and each Participant or beneficiary receiving payments from the Plan, shall receive an immediate cash
lump sum payment of the amount allocated to his Plan Account as of the last day of the month immediately preceding the date of such Change in Control. Such payment shall be made no later than
30 days following the date of the Change in Control on a date determined by the Company. Provided however, that payment shall be made upon a Change in Control only if the event is a "change in
control" within the meaning of Code section 409A and the regulations and other guidance promulgated thereunder. 

5.4.    Source of Payments.    

        All
amounts payable to any person under this Plan shall be paid from the general assets of the Company as such amounts become due and payable or, in the sole discretion of the Company,
such amounts may be paid from the Trust in accordance with the provisions of the Trust and upon the written direction of the Company. 

5.5.    Beneficiaries.    

        Each
Participant shall designate one or more persons, trusts or other entities as his Beneficiary to receive any amounts distributable hereunder at the time of the Participant's death.
Such designation shall be made by the Participant on a Beneficiary Designation Form supplied by the Committee at his initial enrollment and may be changed from time to time by the Participant. Any
such beneficiary designation shall apply to all amounts payable to a Participant hereunder. In the absence of an effective beneficiary designation as to part or all of a Participant's interest in the
Plan, such amount shall be distributed to the personal representative of the Participant's estate. 

5.6.    Withholding.    

        All
amounts payable under the provisions of this Plan to any person shall be subject to withholding of applicable tax and other items in accordance with federal, state and local law. 

 ARTICLE VI

Administration  

6.1.    The Committee—Plan Administrator.    

        (a)   The
Governance Committee of the Board of Directors (or such other committee of the Board of Directors that has authority over executive compensation) shall constitute
the administrative committee for this Plan. The Committee shall administer the Plan in accordance with its terms and purposes. 

9

 

        (b)   The
Committee may designate an individual to serve as Plan Administrator and may at any time revoke a prior designation and select a different individual to serve as
Plan Administrator. 

6.2.    Committee to Administer and Interpret Plan.    

        The
Committee shall administer the Plan and shall have all powers necessary for that purpose, including, but not by way of limitation, the full discretion, authority, and power to
interpret the Plan, to determine the eligibility, status and rights of all persons under the Plan and, in general, to decide any dispute. The Committee shall maintain all Plan records except records
of the Trust. 

6.3.    Organization of Committee.    

        The
Committee shall adopt such rules as it deems desirable for the conduct of its affairs and for the administration of the Plan. It may appoint agents (who need not be members of the
Committee) to whom it may delegate such powers as it deems appropriate, except that any dispute shall be determined
by the Committee. The Committee may make its determinations with or without meetings. It may authorize one or more of its members or agents to sign instructions, notices and determinations on its
behalf. The action of a majority of the Committee shall constitute the action of the Committee. 

6.4.    Indemnification.    

        The
Committee, the Plan Administrator and all of the other agents and representatives of the Committee shall be indemnified and saved harmless by the Company against any claims, and the
expenses of defending against such claims, resulting from any action or conduct relating to the administration of the Plan, except claims judicially determined to be attributable to gross negligence
or willful misconduct. 

6.5.    Agent for Process.    

        The
Committee shall be agent of the Plan for service of all process. 

6.6.    Determination of Committee Final.    

        The
decisions made by the Committee shall be final and conclusive on all persons. 

6.7.    The Trustee.    

        The
Trustee shall be responsible for: (a) the investment of the Trust Fund to the extent and in the manner provided herein and in the Trust Agreement; (b) the custody and
preservation of Trust assets delivered to it; and (c) making such distributions from the Trust fund as the Company shall direct. The Trustee shall have only the responsibilities specified in
this section and in the Trust Agreement. 

 ARTICLE VII

Trust  

7.1.    Trust Agreement.    

        The
Company may enter into a Trust Agreement with a Trustee to provide for the holding, investment and administration of the funds of the Plan. Any such Trust Agreement shall be part of
the Plan, and the rights and duties of any person under the Plan shall be subject to all of the terms and provisions of the Trust Agreement. 

7.2.    Expenses of Trust.    

        The
parties expect that the Trust will be treated as though it were not a separate taxpaying entity for federal and state income tax purposes and that, as a consequence, the Trust will
not be subject to income tax with respect to its income. However, if the Trust should be taxable, the Company shall contribute the amount necessary to pay such taxes to the Trust and the Trustee shall
pay all such taxes out of the Trust. All expenses of administering the Trust shall be paid by the Company. 

10

 

7.3.    Investments.    

        The
Trustee shall invest the amounts in the Trust as provided in the Trust Agreement. Nothing contained in this Section 7.3 shall be construed to require the Company or the
Committee to fund any Participant's Plan Account, and the Measurement Funds shall be used solely as a means to establish income and loss without the actual funding of the Participants' Plan Accounts. 

 ARTICLE VIII

Amendment and Termination  

8.1.    Termination of Deferrals.    

        The
Company, through action of its Board of Directors, may terminate future Participant Deferrals under the Plan at any time, for any reason. If deferrals are discontinued, the Plan and
Trust shall continue to operate in accordance with their respective terms and distributions shall be made to Participants (and Beneficiaries) in accordance with the provisions of the Plan. 

8.2.    Termination of Plan.    

        The
Company expects to continue this Plan indefinitely, but the Company may terminate this Plan at any time. Notwithstanding the foregoing, the Company shall not terminate this Plan as
to its employees solely for the purpose of accelerating the distribution of benefits to its employees. Any termination of the Plan shall be in accordance with Code Section 409A and the
regulations and other guidance promulgated thereunder. 

8.3.    Distribution Upon Termination.    

        Following
termination of the Plan and if the termination is on account of one of the events or satisfies one of the conditions described in Treas. Reg.
Section 1.409A-3(j)(4)(ix), benefits shall be paid in accordance with the applicable condition or event described in Treas. Reg. Section 1.409A-3(j)(4)(ix). If
none of the conditions or events specified in Treas. Reg. Section 1.409A-3(j)(4)(ix) applies, following termination of the Plan, benefits shall be paid at the time and in the manner
provided in ARTICLE V. 

8.4.    Amendment by Company.    

        The
Company may amend this Plan at any time and from time to time, but no amendment shall reduce any benefit that has accrued on the effective date of the amendment. 

 ARTICLE IX

Miscellaneous  

9.1.    Funding of Benefits—No Fiduciary Relationship.    

        All
benefits payable under this Plan shall be distributed as they become due and payable either by the Company out of its general assets or from the Trust, as determined by the Company
in its sole discretion. Nothing contained in this Plan shall be deemed to create any fiduciary relationship between the Company and the Participants. The Plan constitutes a mere promise by the Company
to make benefit payments in the future. To the extent that any person acquires a right to receive benefits under this Plan, such right shall be no greater than the right of any unsecured general
creditor of the Company. The Trust and any assets held by the Trust to assist the Company in meeting its obligations under the Plan shall conform to the model trust described in Internal Revenue
Service Revenue Procedure 92-64. 

9.2.    Reimbursement for Certain Expenses.    

        The
Plan and Trust have been established with the intent and understanding that, for federal income tax purposes, Participants in the Plan will not be subject to tax with respect to
their 

11

 

participation
in the Plan until such time as distributions are actually made to the Participants in accordance with the provisions of the Plan. If a Participant is treated by the Internal Revenue
Service as having received income with respect to the Plan in a year prior to the actual receipt of distributions under the Plan, the Company shall reimburse the Participant for all reasonable legal
and accounting costs incurred by the Participant in contesting such proposed treatment. To the extent any reimbursement would be treated as deferred compensation under Code section 409A, the
reimbursement shall be paid in compliance with Code section 409A, the regulations and other guidance promulgated thereunder. 

9.3.    Right to Terminate Employment.    

        The
Company may terminate the employment of any Participant as freely and with the same effect as if this Plan were not in existence. 

9.4.    Inalienability of Benefits, Participants' Status.    

        No
Participant shall have the right to assign, transfer, hypothecate, encumber or anticipate his interest in any benefits under this Plan, nor shall the benefits under this Plan be
subject to any legal process to levy upon or attach the benefits for payment for any claim against the Participant or his spouse. If any Participant's benefits are garnished or attached by the order
of any court, the Company may bring an action for declaratory judgment in a court of competent jurisdiction to determine the proper recipient of the benefits to be distributed pursuant to the Plan.
During the pendency of the action, any benefits
that become distributable shall be paid into the court as they become distributable, to be distributed by the court to the recipient it deems proper at the conclusion of the action. 

9.5.    Claims Procedure.    

        (a)    Filing a Claim.    All claims shall be filed in writing by the Participant, his
beneficiary, or the authorized representative of the claimant, by completing the procedures that the Committee requires. The procedures shall be reasonable and may include the completion of forms and
the submission of documents and additional information. All claims under this Plan shall be filed in writing with the Committee according to the Committee's procedures no later than one year after the
occurrence of the event that gives rise to the claim. If the claim is not filed within the time described in the preceding sentence, the claim shall be barred. 

        (b)    Review of Initial Claim.    

        (i)    Initial Period for Review of the Claim.    The Committee shall review all materials and
shall decide whether to approve or deny the claim. If a claim is denied in whole or in part, written notice of denial shall be furnished by the Committee to the claimant within a reasonable time after
the claim is filed but not later than 90 days after the Committee receives the claim. The notice shall set forth the specific reason(s) for the denial, reference to the specific plan provisions
on which the denial is based, a description of any additional material or information necessary for the claimant to perfect his claim and an explanation of why such material or information is
necessary, and a description of the Plan's review procedures, including the applicable time limits and a statement of the claimant's right to bring a civil action under ERISA section 502(a)
following a denial of the appeal. 

        (ii)    Extension.    If the Committee determines that special circumstances require an
extension of time for processing the claim, it shall give written notice to the claimant and the extension shall not exceed 90 days. The notice shall be given before the expiration of the
90 day period described in section 9.5(b)(i) above and shall indicate the special circumstances requiring the extension and the date by which the Committee expects to render its
decision. 

        (c)    Appeal of Denial of Initial Claim.    The claimant may request a review upon written
application, may review pertinent documents, and may submit issues or comments in writing. The 

12

 

claimant
must request a review within the reasonable period of time prescribed by the Committee. In no event shall such a period of time be less than 60 days. 

        (d)    Review of Appeal.    

        (i)    Initial Period for Review of the Appeal.    The Committee shall conduct all reviews of
denied claims and shall render its decision within a reasonable time, but not less than 60 days of the receipt of the appeal by the Committee. The claimant shall be notified of the Committee's
decision in a notice, which shall set forth the specific reason(s) for the denial, reference to the specific plan provisions on which the denial is based, a statement that the claimant is entitled to
receive, upon request and free of charge, reasonable access to and copies of all documents, records, and other information relevant to the claimant's claim, and a statement of the claimant's right to
bring a civil action under ERISA section 502(a) following a denial of the appeal. 

        (ii)    Extension.    If the Committee determines that special circumstances require an
extension of time for reviewing the appeal, it shall give written notice to the claimant and the extension shall not exceed 60 days. The notice shall be given before the expiration of the
60 day period described in section 9.5(d)(i) above and shall indicate the special circumstances requiring the extension and the date by which the Committee expects to render its
decision. 

        (e)    Form of Notice to Claimant.    The notice to the claimant shall be given in writing or
electronically and shall be written in a manner calculated be understood by the claimant. If the notice is given electronically, it shall comply with the requirements of Department of Labor Regulation
section 2520.104b-1(c)(1)(i), (iii), and (iv). 

        (f)    Discretionary Authority of Committee.    The Committee shall have full discretionary
authority to determine eligibility, status, and the rights of all individuals under the Plan, to construe any and all terms of the Plan, and to find and construe all facts. 

9.6.    Disposition of Unclaimed Distributions.    

        Each
Participant must file with the Company from time to time in writing his address and each change of address. Any communication, statement or notice addressed to a Participant at his
last address filed with Company, or if no address is filed with the Company, then at his last address as shown on the Company's records, will be binding on the Participant and his spouse for all
purposes of the Plan. The Company shall not be required to search for or locate a Participant or his spouse. 

9.7.    Distributions Due Minors or Incompetents.    

        If
any person entitled to a distribution under the Plan is a minor, or if the Committee determines that any such person is incompetent by reason of physical or mental disability, whether
or not legally adjudicated an incompetent, the Committee shall have the power to cause the distributions becoming due to such person to be made to another for his or her benefit, without
responsibility of the Committee or the Trustee to see to the application of such distributions. Distributions made pursuant to such power shall operate as a complete discharge of the Company, the
Trust, the Trustee and the Committee. 

9.8.    Section 409A Savings Clause.    

        It
is the intention of the Company that payments or benefits payable under this Plan not be subject to the additional tax imposed pursuant to Code Section 409A, and the provisions
of this Plan shall be construed and administered in accordance with such intent. To the extent such potential payments could become subject to Code Section 409A, the Company shall be entitled
to amend the Plan with the goal of giving the participants the economic benefits described herein in a manner that does not result in such tax being imposed. 

13

 

9.9.    Governing Law.    

        This
Plan shall be governed by the laws of the State of Colorado to the extent such laws are not pre-empted by federal law. 

							
	Dated: December 5, 2008	 	 	 	 
	

ATTEST:	
 	
 CIMAREX ENERGY CO.
	
 By:	
 	
/s/ Mary Kay Rohrer

  Mary Kay Rohrer

Corporate Secretary	
 	
By:	
 	
/s/ F. H. Merelli

  F. H. Merelli

President and Chief Executive Officer

14

QuickLinks

EXHIBIT 10.19

TABLE OF CONTENTS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00154-of-00352.parquet"}]]