Document:

Exhibit
            10.2     

            

            ENERGY CONVERSION
            DEVICES, INC.

            

            
                     
            REVISED SEPARATION AGREEMENT AND COMPLETE RELEASE OF LIABILITY

            

            	
                    1.	
                        
                        PARTIES:

                        NANCY BACON
                        (“MS. BACON”), and ENERGY CONVERSION DEVICES, INC., Ovonic
                        Battery Company and United Solar Ovonic, LLC and their subsidiaries,
                        divisions, affiliates and joint ventures (collectively referred to as
                        “ECD”), have mutually agreed to terminate their employment
                        relationship effective Monday, March 31, 2008 and to provide benefits to
                        MS. BACON to assist her in her transition away from ECD.

                    

            

            

            	
                    2.
                    	
                        
                        CONSIDERATION:

                        ECD will provide the
                        following benefits as a result of the separation of MS. BACON from her
                        employment with ECD effective Monday, March 31, 2008.

                    

            

            	
                      	
                        
                        A.    
                        SEPARATION PAY:

                        Upon signing of this
                        Agreement, and after the seven (7) day revocation period has expired, MS.
                        BACON shall be eligible for up to Fifty-Two (52) Weeks’ base pay.
                        Severance, including any retroactive payment back to March 31, 2008, will
                        begin to be paid in the first full payroll period following expiration of
                        the seven (7) day revocation period explained below. ECD will deduct from
                        the separation pay payments: (1) all amounts owed to ECD by MS. BACON; (2)
                        all taxes to be withheld according to applicable federal, state and local
                        laws; (3) garnishments; (4) all support orders; (5) all tax liens; and (6)
                        any other court order directing deduction from an employee’s
                        paycheck. There will be no lump sum payment. Since employment is
                        terminated, there will be no additional vacation, sick and/or holiday pay
                        during the severance period. Severance payments shall not be considered
                        wages under the terms of the ECD 401-K Plan.

                    

            

            	
                      	
                        
                        B.    
                        MEDICAL & DENTAL INSURANCE:

                        If MS. BACON, at the
                        time of separation, was not a participant in ECD’s group medical or
                        dental plans, MS. BACON will not be eligible for COBRA coverage under these
                        programs upon termination of employment.

                    

            

            

            	
                      	If MS.
                    BACON is a participant in ECD’s group medical or dental plans
                    prior to the time of separation, then MS. BACON regular group medical or
                    dental insurance will remain in effect through the termination date. In
                    accordance with federal law (COBRA), MS. BACON may, however, elect to continue
                    to participate in the group medical and dental plans of the 

            

            
            

            

            

            

            1

            

            
            

            ENERGY CONVERSION
            DEVICES, INC.

            	
                      	Company
                    generally until eighteen (18) months from the date of termination, or under
                    COBRA rules, until MS. BACON is covered under another group insurance plan,
                    whichever occurs first. A more detailed COBRA notice will be provided to MS.
                    BACON in a separate COBRA notification. 

            

            

            	
                      	In
                    addition, upon signing this Revised Separation Agreement and upon receipt by
                    ECD of MS. BACON’s COBRA election, ECD will continue to pay ECD’s
                    pre-termination portion of the COBRA premium for medical and dental insurance
                    for the period of severance, unless MS. BACON obtains other medical or dental
                    group insurance under COBRA rules. MS. BACON’s contribution to the COBRA
                    insurance premium will be deducted from the severance payments. In order to
                    receive this benefit, MS. BACON must elect COBRA coverage in a timely
                    manner. ECD will pay for its portion of the COBRA cost after a COBRA election
                    is made by MS. BACON and after seven (7) calendar days have elapsed since the
                    signing of this Agreement. After the period of severance, MS. BACON will be
                    responsible for entire COBRA premium. 

            

            	
                      	
                        
                        C.    
                        TERMINATION OF OTHER EMPLOYEE BENEFITS:

                        All other benefits,
                        including but not limited to, Company-paid life insurance, supplemental
                        life insurance, dependent life insurance, Company-paid accidental death and
                        dismemberment insurance, short-term and long-term disability plans,
                        vacation accrual, etc., cease on March 31, 2008. The supplemental life
                        insurance benefit may be subject to conversion rights. These policies may
                        be converted to individual policies. Conversion forms will be sent to MS.
                        BACON’s home by the insurance carrier if MS. BACON meets the
                        eligibility requirements.

                    

            

            	
                      	
                        
                        D.    
                        VACATION ACCRUAL:

                        All accrued but
                        unused vacation days will be paid in the first payroll following
                        termination of employment in accordance with Company policy. It is
                        estimated that as of the date of termination there are 810 hours in MS.
                        BACON’s vacation bank.

                    

            

            	 	
                        
                        E.    
                        CONSULTING:

                        MS. BACON will
                        provide consulting and funding services to ECD for business advice and
                        government relations and to support Ovonic Battery Company’s (OBC)
                        activities to finalize the strategic alternatives for COBASYS and to
                        cooperate with ECD and OBC in the CTV arbitration on an “as
                        needed” basis. The Consulting Agreement and Funding Agreement have
                        been separately negotiated between the Parties and this

                    

            

            
            

            

            

            

            2

            

            
            

             

            ENERGY CONVERSION
            DEVICES, INC.

            

            	 	
                    Agreement is not dependent
                    on reaching an agreement on the Consulting and Funding Agreements. The amount
                    received by MS. BACON under the Consulting and Funding Agreements will not be
                    deducted from the severance pay set forth in this Agreement. 

            

            	
                      	
                        
                        F.    
                        Bonus:

                        Contingent upon her
                        re-signing this Agreement following the last day of employment, MS. BACON
                        will receive a bonus of $50,000.00, minus normal payroll deductions payable
                        in the first payroll check following the expiration of the 7-day revocation
                        period. This payment is in lieu of any claim for payment under the proposed
                        AIP Plan. Should this Agreement be signed by MS. BACON prior to the date of
                        her employment separation, in order to receive this bonus payment, MS.
                        BACON will be required to re-sign this Agreement releasing all claims
                        between the date of signing this Agreement and her separation
                        date.

                    

            

            	
                      	
                        
                        G.    
                        OUTPLACEMENT ASSISTANCE:

                        ECD will provide MS.
                        BACON with outplacement assistance, with the firm and program to be
                        determined by ECD. Outplacement must be elected by MS. BACON no later than
                        May 31, 2008.

                    

            

            

            	
                    3.  	
                        RELEASE OF
                        CLAIMS:

                        In consideration of
                        the terms set forth in this Agreement, MS. BACON agrees to release ECD,
                        including Ovonic Battery Company and United Solar Ovonic, LLC and all of
                        their subsidiaries, divisions, affiliates, joint ventures, shareholders,
                        officers, directors, employees, insurers and agents of
                        ALL* liability in connection with MS. BACON’s
                        employment termination, including, but not limited to, any and all claims
                        under federal or state laws for discrimination or wrongful discharge,
                        including the Age Discrimination in Employment Act, (“ADEA”),
                        the Worker Adjustment and Retraining Notification Act (“WARN”)
                        (even if the WARN Act is triggered following MS. BACON’s
                        termination).

                    

            

            

            	
                        4. 

                    	
                        CONFIDENTIAL AND
                        PROPRIETARY INFORMATION:

                        MS. BACON
                        acknowledges that during the course of her employment, she has been
                        entrusted with certain business, financial, technical, personnel and other
                        proprietary information and materials that are the property of ECD. MS.
                        BACON agrees not to communicate or disclose to any third party or use for
                        her own account, without written consent of ECD, any of the aforementioned
                        information

                    

            

            

            	
                        
                        *

                    	
                      	A
                    representative listing of potential laws governing the employment relationship
                    which are being released by the employee is attached as Exhibit
                    “A.” This is not intended to be an exhaustive list, but
                    rather the types of claims and the extent to which they are being
                    released. 

            

            

            

            
            

            

            

            

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            ENERGY CONVERSION
            DEVICES, INC.

            

            	 	
                    or material, except as
                    required by law, unless and until such information or material is necessary for
                    her use in connection with her consultancy agreement with ECD or such
                    information becomes generally available to the public through sources other
                    than MS. BACON. MS. BACON will return to ECD the originals and all copies of
                    any business records of ECD which are or were subject to her custody or
                    control, regardless of the sources from which such records were obtained
                    following the completion of her consultancy arrangement with ECD. MS. BACON
                    will certify that to the best of her knowledge and belief and after diligent
                    search and inquiry, she has done so following the end of the consultancy
                    arrangement with ECD. In addition, all business equipment shall be returned
                    following the end of the consultancy arrangement with ECD unless specifically
                    agreed in writing otherwise by ECD. 

            

            

            	
                        5.

                    	
                        
                        NON-DISPARAGEMENT:

                        MS. BACON will
                        not disparage, discredit or otherwise treat in any detrimental manner, ECD
                        or any of its division, subsidiaries, affiliates, joint ventures, officers,
                        directors and employees. MS. BACON will forfeit any right to receive the
                        benefits described above if MS. BACON engages in deliberate conduct or
                        makes public statements detrimental to the business or reputation of
                        ECD.

                    

            

            

            	
                    6.  	
                        REFERENCE
                        REQUESTS:

                        Upon receipt of a
                        reference request directed to the Human Resources Department, ECD will only
                        release dates of employment, job positions held and salary if
                        requested.

                    

            

            

            	
                        7.

                    	
                        
                        NON-SOLICITATION:

                        MS. BACON
                        agrees that during the period of twelve (12) months from the date of her
                        termination, MS. BACON will not, directly or indirectly, on behalf of
                        herself or any other person or entity, without the prior written approval
                        of ECD, directly or indirectly: (i) induce any person or entity to leave
                        her or her employment with ECD, terminate an independent contractor
                        relationship with ECD or terminate or reduce any contractual relationship
                        with ECD; or (ii) induce or influence any customer, supplier or other
                        person that has a business relationship with ECD or any subsidiary,
                        division, affiliate or joint venture of ECD to discontinue or reduce the
                        extent of such relationship. The Parties agree that the determination of
                        the amount of damages to ECD would be difficult to determine and,
                        therefore, the Parties agree that should MS. BACON violate this Paragraph,
                        MS. BACON will pay as liquidated damages 33% of the solicited MS.
                        BACON’s annualized base pay in a lump sum. This provision for
                        liquidated damages shall not preclude the right of ECD to seek equitable
                        relief through the issuance of an injunction prohibiting employment of the
                        solicited employee or further action by MS. BACON to interfere with the
                        business relationship with any customer or supplier.

                    

            

            

            

            
            

            

            

            

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            ENERGY CONVERSION
            DEVICES, INC.

            

            
                   

            

            	
                        8.

                    	
                        
                        NON-COMPETITION:

                        MS. BACON
                        agrees that for the period of twelve (12) months from the date of the
                        termination of her employment or consultancy, whichever is greater, she
                        will not, directly or indirectly, on her behalf or any other person or
                        entity, without the prior written approval of ECD, own, manage, operate,
                        join, control, be employed by, assist, consult or participate in the
                        ownership, management, operation or control of, or be connected in any
                        manner, including but not limited to holding the positions of shareholder,
                        director, officer, consultant, independent contractor, employee, partner or
                        investor, with any Competing Enterprise. “Competing Enterprise”
                        means any person, corporation, partnership or other entity engaged in whole
                        or in part in a business which is in competition with ECD and its
                        divisions, subsidiaries, affiliates and joint ventures as of the date that
                        employment with ECD terminates.

                    

            

            

            	
                      	The
                    restrictions in this Paragraph shall apply to the following geographic areas:
                    North America including the United States, Canada and Mexico. MS. BACON agrees
                    that the restrictions in this Paragraph are reasonable. MS. BACON also agrees
                    to provide any prospective employer with a copy of the non-competition
                    paragraph of this Agreement. In addition, the Parties agree that ECD shall be
                    entitled to recover, as liquidated damages, all after-tax earnings of MS. BACON
                    derived from violation of this Paragraph. This provision for liquidated damages
                    shall not preclude the right of ECD to seek equitable relief through the
                    issuance of an injunction prohibiting employment of MS. BACON in violation of
                    this Agreement. In addition, the time period specified in this Non-competition
                    paragraph shall be extended for the period of violation. 

            

            

            	
                        9.

                    	
                        INDIVIDUAL
                        AGREEMENT:

                        MS. BACON
                        acknowledges that the consideration she is receiving pursuant to this
                        Agreement is not part of a plan or program and has been individually
                        negotiated between the Parties and that she is not entitled to additional
                        severance pay or benefits beyond the terms of this Agreement.

                    

            

            

            	
                        10.

                    	
                        TIME PERIOD FOR
                        REVIEW OF AGREEMENT:

                        MS. BACON was
                        provided with a copy of the Separation Agreement on February 9, 2008 and
                        was provided with an opportunity of forty-five (45) calendar days to review
                        the Agreement and she was advised to consult with an attorney of MS.
                        BACON’S choosing at her own expense. MS. BACON agrees that as a
                        result of negotiations for changes to the Agreement in the form of enhanced
                        benefits, she is waiving the restarting of the 45-day review period even if
                        the changes to this Agreement are deemed to be material. No benefits
                        provided by this Agreement will be made until the Agreement is signed and
                        the seven (7) day revocation period has expired.

                    

            

            

            

            
            

            

            

            

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            ENERGY CONVERSION
            DEVICES, INC.

            

            
                 

            

            	
                        11.

                    	
                        UNDERSTANDING OF
                        AGREEMENT:

                        MS. BACON
                        acknowledges that she has read this entire Agreement, that she has had the
                        opportunity to consult with counsel at her own expense, and that she
                        understands all of its terms and knowingly and freely enters into the
                        Agreement. MS. BACON further acknowledges that she has been afforded
                        forty-five (45) calendar days to consider this Agreement from the date of
                        the original receipt of this Agreement, has been advised to seek review of
                        this Agreement by an attorney at MS. BACON’s own expense, and that
                        she has seven (7) calendar days after its execution to revoke the
                        Agreement.

                    

            

            

            	
                    12.  	
                        ENTIRE
                        AGREEMENT:

                        This Revised
                        Separation Agreement and Complete Release of Liability, together with any
                        previously signed confidentiality, non-solicitation, patent and non-compete
                        agreements, constitute the complete and entire Agreements between the
                        Parties relating to the termination of the employment relationship and
                        supersedes any and all previous agreements, representations or
                        understandings regarding termination of benefits. These Agreements may not
                        be changed, modified or terminated unless such changes are made in writing
                        and signed by both Parties. Any previously signed confidentiality,
                        non-solicitation, patent, or non-compete agreement shall remain in effect
                        following termination of the employment relationship and execution of this
                        Agreement.

                    

            

            

            	
                    13.  	
                        
                        SEVERABILITY:

                        Should any portion
                        of this Agreement be ruled invalid, it shall not affect the remaining
                        provisions of this Agreement, which shall remain in full force and
                        effect.

                    

            

            

            	
                    14.  	
                        GOVERNING
                        LAW:

                        The Parties agree
                        that any disputes regarding this Revised Separation Agreement shall be
                        governed by the laws of the State of Michigan.

                    

            

            

            	
                    15.  	
                        ARBITRATION OF
                        DISPUTES:

                        The Parties agree
                        that any dispute over the terms of this Agreement or its enforcement shall
                        be resolved exclusively by final and binding arbitration pursuant to the
                        Employment Arbitration Rules and Mediation Procedures of the American
                        Arbitration Association. The award of the arbitrator may be filed in the
                        appropriate federal or circuit court in the state in which the employee was
                        employed. ECD and MS. BACON retain the right to seek equitable relief
                        pending the outcome of the arbitration proceedings with jurisdiction and
                        venue agreed to by the Parties in Oakland County Circuit Court.

                    

            

            

            

            
            

            

            

            

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            ENERGY CONVERSION
            DEVICES, INC.

            

            
                 

            

            	
                    16.  	
                        RE-SIGNING
                        AGREEMENT:

                        If this Revised
                        Separation Agreement is signed by MS. BACON prior to her last day of work
                        on March 31, 2008, MS. BACON will be required to re-sign this Agreement
                        releasing all claims between the date of signing this agreement and her
                        last day of employment as a condition for receipt of the $50,000.00
                        bonus.

                    

            

            

            IN WITNESS WHEREOF, we have set
            our hands the day and year first written below.

            	Dated: March 13, 2008	/S/ 	
                    	 Nancy M. Bacon
	
                    	
                    NANCY BACON
	
                    	
                    	
                    
	 	ENERGY CONVERSION DEVICES, INC.
	
                    	
                    	
                    
	 	/S/	 Art
                    Rogers
	
                    	
                    By:	Art
                    Rogers
	Dated: March 13, 2008 	Its: 	V.P., Human Resources &
                    Administration

            

               
                     
            

            RE-SIGNING OF
            REVISED SEPARATION AGREEMENT

            

            I signed the Revised Separation
            Agreement on March __, 2008 and understand that the terms of the Agreement are now
            final and are not affected by my decision to re-sign the agreement. I am now re-signing
            this agreement following my employment separation date as a condition for receipt of
            the $50,000.00 bonus and I understand that I am releasing all claims specified in
            Paragraph 2 (F), as a condition for the receipt of this additional benefit beteen the
            date I signed the Agreement and my separation date. I understand that I have seven (7)
            days to revoke my Re-signing of the Agreement.

            

            	Dated:
                    March 31, 2008	 /S/ Nancy M. Bacon
	
                    	 NANCY
                    BACON
	
                    	
                    	
                    
	
                    	
                    	
                    

            

            

            

            

            

            

            

            

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            ENERGY CONVERSION
            DEVICES, INC.

            

            EXHIBIT
            “A”

            

            SCOPE OF
            RELEASE

            

            
                    This
            Release of all claims by the employee, as part of this Revised Separation Agreement, is
            intended and understood by all parties to release all claims by employee,
            without limitation, relating to the employment relationship. The list set forth below
            is a representative sample of the types of employment-related claims being released by
            the employee and is not intended to be a complete list.

            

            
                    
            Federal Law: Title VII of the Civil Rights Act of 1964 (race, color, religion,
            national origin or sex); the 1991 Civil Rights Act; the Age Discrimination in
            Employment Act of 1967 (age); the Older Workers Benefit Protection Act
            (“OWBPA”) (age); the Vocational Rehabilitation Act of 1973 (handicap); The
            Americans with Disabilities Act of 1990 (Handicap); 42 U.S.C. Section 1981, 1986 and
            1988 (race); the Sarbanes-Oxley Act of 2002; the Employee Retirement Income Security
            Act (ERISA) (Pension and employee benefits); the Equal Pay Act of 1963 (prohibits pay
            differentials based on sex); the Immigration Reform and Control Act of 1986; Executive
            Order 11246 (race, color, religion, sex or national origin); Executive Order 11141
            (age); Vietnam Era Veterans Readjustment Assistance Act of 1974 (Vietnam era veterans
            and disabled veterans); the Federal Railroad Safety Act (45 U.S.C. Section 421 et.
            seq.); Section 301 of the Labor Management Relations Act, 29 U.S.C. Section 185
            et. seq. (suits for breach of the Collective Bargaining Agreement); the
            Fair Labor Standards Act (minimum wage and overtime pay); the Labor Management
            Relations Act (rights protected by the National Labor Relations Board); the
            Occupational Safety and Health Act (safety matters); the Worker Adjustment and
            Retraining Notification Act (“WARN”) (notification requirements for
            employers who are curtailing or closing an operation), the Consolidated Omnibus Budget
            Reconciliation Act of 1985 (COBRA) (which provides health insurance continuation
            coverage for eligible employees), the Family and Medical Leave Act of 1993
            (“FMLA”), and Federal Common Law.

            

            
                    
            Michigan Law: The Elliott-Larsen Civil Rights Act (race, color, religion,
            national origin, age, sex, marital status, height and weight) and any and all
            derivative claims; the Michigan Persons With Disabilities Act (handicap); the Michigan
            Wage Payment Act (MCLA 408.471) (wages and benefits); AIDS Testing and Confidentiality
            Act; Equal Pay; the Polygraph Protection Act of 1981 (restrictions on the use of
            polygraphs); Whistleblower Protection; Jury Service; Subpoenaed Victim; Job Reference
            Immunity; all as amended, and the common law of the State of Michigan; tort; breach of
            express or implied employment contract; wrongful discharge; workers’ compensation
            retaliation; tortious interference with contractual relations and loss of consortium,
            constructive discharge or any other law applicable to the employment
            relationship.

            

            
                    
            NOTICE: Should you have any questions regarding the scope of this Release, it is
            strongly recommended that you seek the advice of an attorney of your choosing, and at
            your own expense, before signing this Agreement.

            

            

            
            

            

            

            

            8ex10-1.htm

    Exhibit 10.1

     

    

     

     

    Omnibus
Incentive Compensation Plan

     

    2008
Stock Unit/Restricted Stock Agreement

     

    

     

    
      	 
      	
              Grantee

            	
              James
      R. Gibbs

            
	 
      	
              Date
      of Grant

            	
              Effective
      February 27, 2008

            
	 
      	
              Number
      of Stock Units Granted:

            	
              Total
      of 131,429 Stock Units

            
	 
      	
              Tranche
      A

            	
              43,810

            
	 
      	
              Tranche
      B

            	
              43,810

            
	 
      	
              Tranche
      C

            	
              43,809

            

    

    

     

    1. Stock Unit
Grants.  I am pleased to inform you that you have been granted
Stock Units with respect to shares of common stock of Frontier Oil Corporation
(the “Company”) under the Frontier Oil Corporation Omnibus Incentive
Compensation Plan (the “Plan”).  A Stock Unit is a notional (phantom)
share of Company stock.  The terms of the grants are subject to the
terms of the Plan and this Agreement, which includes Attachment A
hereto.

     

    2. Performance Goals/Restricted
Stock Grants.  If, and to the extent, the Performance Goal
applicable to a Tranche of Stock Units is achieved and certified by the
Committee (as set forth on Attachment A), at the end of the Performance Period
you will receive, in cancellation of and in exchange for your Stock Units
subject to that Tranche, a number of shares of Restricted Stock (except with
respect to the Tranche C Stock Units for which you will receive fully vested
shares of Company Stock (“Vested Shares”) instead of Restricted Stock) equal to
the product of the applicable Stock Units earned percentage set forth in Item I
on Attachment A and the number of Stock Units granted to you with respect to
that Tranche.  If the Threshold for a particular Tranche is not
achieved for the Performance Period, all Stock Units that are subject to that
Tranche will automatically be cancelled without payment at the end of the
Performance Period.

     

    3.           Vesting.  To
the extent Stock Units are earned with respect to Tranche A or Tranche B and
shares of Restricted Stock are granted to you at the end of the Performance
Period, then, subject to the further provisions of this Agreement, those shares
of Restricted Stock will vest as follows:  one-third on June 30, 2009,
one-third on June 30, 2010 and the final one-third on June 30, 2011. Shares
issued with respect to Stock Units that are subject to Tranche C will be Vested
Shares.

    

     

    Notwithstanding
the above vesting schedule, upon the occurrence of any of the following events
during the Vesting Period (the period beginning January 1, 2009 and ending June
30, 2011), all shares of Restricted Stock then outstanding, if any, shall become
vested or forfeitable, as the case may be, as provided below:

     

    
      	
               
      

            	
              (a)

            	
              Death, Retirement or
      Disability.  If you cease to be an employee of the
      Company and its Affiliates during the Vesting Period as a result of your
      death, Retirement or a disability that entitles you to disability benefits
      under the Company’s long-term disability plan, any shares of Restricted
      Stock then outstanding automatically shall become 100% vested upon your
      termination of employment.  As used herein, “Retirement” means
      your termination of employment with the Company and its Affiliates for
      reasons other than Cause on or after June 15, 2009, or otherwise with the
      consent of the Committee.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Other
      Terminations.  If you cease to be an employee of the
      Company and its Affiliates (i) during the Performance Period for any
      reason, all Stock Units awarded to you automatically shall be forfeited
      without payment upon your termination and (ii) during the Vesting Period
      for any reason other than due to death, Retirement or disability as
      provided in paragraph 3(a) above, all shares of Restricted Stock then
      outstanding, if any, (or earned but not yet granted to you after the
      Performance Period, if any) automatically shall be forfeited without
      payment upon your termination of employment.  However, if you
      Retire per the definition in Section 3(a) above during a multi-year
      performance period, that
      performance period will be shortened to end on the actual retirement date
      as long as the modified performance period is at least a year in length,
      and your award and payment will be determined by the modified performance
      period.  Otherwise, retirement during a performance period will
      result in forfeiture of Stock
Units.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Change of
      Control.  Upon the occurrence of a Change of Control (A)
      during the Performance Period, your Stock Units shall be cancelled in full
      on such date and you will be paid (i) a number of Shares equal to 125% of
      the number of Stock Units then credited to you plus (ii) an amount of cash
      equal to the amount of cash and stock dividend equivalents that would have
      been then credited to you if the Stock Units instead had been shares of
      Restricted Stock and (B) during the Vesting Period, (i) all shares of
      Restricted Stock, if any, then outstanding (or earned but not yet granted
      to you after the Performance Period, if any) automatically shall become
      100% vested on such date and (ii) you will be paid all dividend
      equivalents (in cash or stock, as applicable) then credited to you
      pursuant to Section 4.

            

    

     

    For
purposes of this Agreement, “employment with the Company” shall include being an
employee or a Director of, or a Consultant to, the Company or an
Affiliate.

     

    4. Dividend
Equivalents.  If you receive a grant of Restricted Stock or are
paid Vested Shares pursuant to Section 2, then, on or as soon as practicable
following the vesting of a share of Restricted Stock (but not later than 21⁄2
months after such vesting date), or the receipt of the Vested Shares, as the
case may be, the Company shall pay you (i) an amount of cash equal to the value
of all cash dividends the Company has paid with respect to a share of Company
stock during the period beginning on the Date of Grant and ending on the date
the share of Restricted Stock became vested or the Vested Share was issued (the
“Dividend Period”) and (ii) a number of Shares equal to the number of stock
dividends paid during the Dividend Period with respect to a
Share.  Dividend equivalents (cash or stock) shall not be payable with
respect to any Stock Unit that is not earned or any share of Restricted Stock
that is forfeited.

     

    5. Nontransferability of
Award.  The Stock Units and any shares of Restricted Stock
granted to you may not be transferred in any manner otherwise than by will or by
the laws of descent or distribution.  The terms of the Plan and this
Agreement shall be binding upon your executors, administrators, heirs,
successors and assigns.

     

    6. Entire Agreement; Governing
Law.  The Plan is incorporated herein by
reference.  The Plan and this Agreement constitute the entire
agreement of the parties with respect to the subject matter hereof and, except
as expressly provided in this Agreement, supersede in their entirety all prior
undertakings and agreements between you and the Company with respect to the
same.  This Agreement is governed by the internal substantive laws,
but not the choice of law rules, of the State of Texas.

     

    7. Withholding of
Tax.  To the extent that the vesting or payment of Stock Units,
Restricted Stock, Vested Shares or payment of a dividend equivalent results in
the receipt of compensation by you with respect to which the Company or an
Affiliate has a tax withholding obligation pursuant to applicable law, unless
other arrangements have been made by you that are acceptable to the Company or
such Affiliate, you shall deliver to the Company or an Affiliate such amount of
money as the Company or an Affiliate may require to meet its withholding
obligations under such applicable law; provided, however, you may direct the
Company to withhold such number of Shares that would otherwise be delivered to
you hereunder upon vesting that have an aggregate fair market value that does
not exceed the amount of taxes required to be withheld by the Company or an
Affiliate.  No delivery of Shares shall be made pursuant to this
Agreement until you have paid or made arrangements approved by the Company or an
Affiliate to satisfy in full the applicable tax withholding requirements of the
Company or an Affiliate.

     

    8. Amendment.  This
Agreement may be modified only by a written agreement signed by you and an
officer of the Company who is expressly authorized by the Company to execute
such document; provided, however, notwithstanding the foregoing, the Company may
make any change to this agreement without your consent if such change is not
materially adverse to your rights under this Agreement.

     

    9. General.  By
accepting this grant, you agree that the Stock Units, shares of Restricted
Stock, if granted, and vested Stock are granted or issued under and governed by
the terms and conditions of the Plan and this Agreement.  In the event
of any conflict, the terms of the Plan shall control.  Unless
otherwise defined herein, the terms defined in the Plan shall have the same
defined meanings in this Agreement.

     

    10. Change of Control and/or
Severance Agreement.  Notwithstanding anything in this
Agreement to the contrary, the terms of any Change of Control and/or Severance
Agreement between you and the Company in effect on the Date of Grant are
incorporated herein by reference and to the extent such agreement continues to
be in effect on any relevant date hereunder, shall control over any provisions
in this Agreement in conflict with the terms of such Change of Control and/or
Severance Agreement.

     

    FRONTIER OIL CORPORATION

    

    

    By:___________________________

    Name:  Michael C.
Jennings

    Title:    Executive Vice
President and CFO

    

    

    

    EMPLOYEE:

    

    _______________________________

                           James
R. Gibbs

    

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    ATTACHMENT
A

    I.           Performance
Goals

     

    The
Performance Period shall be (i) the 2008 calendar year for Tranche A and Tranche
B Stock Units and (ii) the 2008, 2009 and 2010 three-year calendar period for
the Tranche C Stock Units.

     

    A.           Tranche
A Stock Units: Net Income

     

    
      	
              Net Income for

              Performance Period 1

            	
              Award Level

            	
              Stock
      Units Earned

              as a % of Target 2

            
	
              <$151.2
      MM

            	
              <
      Threshold

            	
              -0-

            
	
              $151.2
      MM

            	
              Threshold

            	
              75%

            
	
              $189.0
      MM

            	
              Target

            	
              100%

            
	
              $226.8
      MM

               

            	
              Maximum

            	
              125%

            
	
              1  Net
      income as reported in the Company’s Annual Report to Shareholders for
      2008, subject to adjustment as provided in Item II below.

               

              2  If
      Net Income falls between two Award Levels, the percentage of Stock Units
      earned will be interpolated on a straight line basis between the two
      closest points in the table above.

            

    

    

    B.           Tranche
B Stock Units: Return on Capital Employed1
(“ROCE”) vs Peers

     

    
      	
              ROCE vs Peers 2

            	
              Award Level

            	
              Stock
      Units Earned

              as a % of Target 3

            
	
              <0.80

            	
              <Threshold

            	
              -0-

            
	
              0.80

            	
              Threshold

            	
              75%

            
	
              1.05

            	
              Target

            	
              100%

            
	
              1.30

               

            	
              Maximum

            	
              125%

            
	
              1
      ROCE is calculated as EBITDA divided by (average of the beginning
      of year and end of year Shareholders Equity plus the average of the
      beginning of year and end of year net debt).

            
	
              2   ROCE
      vs Peers is calculated by dividing the Company’s 2007 ROCE by the simple
      average 2008 ROCE achieved by the following independent refiners: Holly
      Corporation, Valero Corporation, Tesoro Corporation, Western Refining,
      Sunoco Corporation and Alon USA Energy.

            
	
              3 If ROCE
      vs Peers falls between two Award Levels, the percentage of Stock Units
      earned will be interpolated on a straight-line basis between the two
      closest points in the table above.

            

    

    

     

    C.           Tranche
C Stock Units:  3-year Total Shareholder Return (“TSR”) vs
Peers

     

    
      	
              TSR vs Peers 1

            	
              Award Level

            	
              Stock
      Units Earned

              as a % of Target 2

            
	
              <0.80

            	
              <Threshold

            	
              -0-

            
	
              0.80

            	
              Threshold

            	
              75%

            
	
              1.05

            	
              Target

            	
              100%

            
	
              1.30

               

            	
              Maximum

            	
              125%

            
	
              1
      3-year TSR vs Peers is calculated by dividing the sum of one plus
      the Company’s three-year TSR (from January 2008 to December 2010) by the
      sum of one plus the average TSR for the same period for the following
      companies: Holly Corporation, Valero Corporation, Tesoro Corporation,
      Western Refining, Sunoco Corporation and Alon USA Energy. TSR equals the
      percentage change in share price plus the total yield attributable to cash
      and stock dividends for the three-year period.  The January 2008
      stock price will be calculated using the average closing prices on the
      stock for the first twenty trading days of January 2008; the December 2010
      stock price will be calculated using the average closing prices on the
      stock for the final twenty trading days in December
  2010.

            
	
              2  If
      TSR vs Peers falls between two Award Levels, the percentage of Stock Units
      earned will be interpolated on a straight-line basis between the two
      closest points in the table above.

            

    

    

    II.           Adjustments
to Performance Goals for Certain Events

     

    If,
during the Performance Period, there is change in accounting standards required
by the Financial Accounting Standards Board, the performance goals in the above
tables A & B shall be adjusted as appropriate to disregard the effect of
such change.

     

    In the
event of an acquisition or disposition of a business operation by the Company or
an Affiliate during the Performance Year, or any other Extraordinary Item(s) (as
determined for GAAP purposes and reflected in the Company’s Annual Report to
Stockholders) during the Performance Period, for purposes of comparing results
with the performance goals for the Performance Period, the actual results and
the dollar amount of the performance goals shall exclude the effect of such
acquisition, disposition or other Extraordinary Item(s) (applies to tables A and
B only).

     

    If a Peer
company ceases to be publicly traded during the three-year Performance Period,
such company shall be excluded from the calculation.

     

    Notwithstanding
the foregoing, however, an adjustment pursuant to this Section II may be made
only to the extent the adjustment does not cause the award to cease to qualify
as a “performance-based” award under IRC Section 162(m) and applicable Treasury
regulations thereunder.

     

    III.           Committee
Certification

     

    As soon
as reasonably practical following the end of the Performance Period, the
Committee shall review the Performance Goal results for the Performance Period
(as adjusted by the Company, if applicable) and certify those results in
writing.  No cash payments, shares of Restricted Stock or Vested
Shares shall become paid or issuable to you prior to the Committee’s
certification.  However, Committee certification shall not apply in
the event of a Change of Control.

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