Document:

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EXHIBIT 10.40

NONEMPLOYEE DIRECTOR NONQUALIFIED STOCK OPTION

AWARD AGREEMENT

UNDER THE DEVON ENERGY CORPORATION

2005 LONG-TERM INCENTIVE PLAN

     THIS NONQUALIFIED STOCK OPTION AGREEMENT (the “Award Agreement”), entered into as of
_______________ (the “Grant Date”), by and between DEVON ENERGY CORPORATION (the “Company”) and
__________________________ (the “Participant”):

WITNESSETH:

     WHEREAS, the Participant is a nonemployee Director of the Company, and it is important to the
Company that the Participant be encouraged to remain a director of the Company; and

     WHEREAS, in recognition of such facts, the Company desires to provide to the Participant an
opportunity to purchase ______________ shares of the common stock of the Company, as hereinafter
provided, pursuant to the “Devon Energy Corporation 2005 Long-Term Incentive Plan” (the “Plan”), a
copy of which has been provided to the Participant; and

     WHEREAS, any capitalized terms used but not defined herein have the same meanings given them
in the Plan.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for good
and valuable consideration, the Participant and the Company hereby agree as follows:

     Section 1. Definitions. Words, terms, or phrases used in this Agreement shall have the
meanings set forth in this Section 1:

     (a) The Participant’s “Date of Termination” means the first day occurring on or after the
Grant Date on which the Participant is not a member of the Board.

     Section 2. Grant of Stock Option. The Company hereby grants to the Participant a nonqualified
stock option (the “Stock Option”) that is not intended to qualify under Section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”), to purchase all or any part of the number of Covered
Shares (as set forth on the Cover Page) of its common stock, par value $.10 (the “Stock”), under
and subject to the terms and conditions of this Award Agreement and the Plan which is incorporated
herein by reference and made a part hereof for all purposes. The purchase price for each share to
be purchased hereunder shall be the option price set forth on the Cover Page (the “Exercise
Price”).

     Section 3. Times of Exercise of Stock Option. The Stock Option shall be fully exercisable on
and after the Grant Date.

     Section 4. Term of Stock Option. The Stock Option shall cease to be exercisable on the
earliest to occur of:

     (a) The Expiration Date set forth on the Cover Page, or

     (b) The three-year anniversary of the Participant’s Date of Termination.

     Section 5. Nontransferability of Stock Option.

     The Stock Option shall not be transferable otherwise than by will or the laws of descent and
distribution, and the Stock Option may be exercised, during the lifetime of the Participant, only
by the Participant. More particularly (but without limiting the generality of the foregoing), the
Stock Option may not be assigned, transferred (except as provided above), pledged or hypothecated
in any way, shall not

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be assignable by operation of law and shall not be subject to execution, attachment, or
similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of
the Stock Option contrary to the provisions hereof shall be null and void and without effect.

     Section 6. Method of Exercising Stock Option.

     (a) Procedures for Exercise. The manner of exercising the Stock Option herein granted shall
be by written notice to the Secretary of the Company at the time the Stock Option, or part thereof,
is to be exercised, and in any event prior to the expiration of the Stock Option. Such notice
shall state the election to exercise the Stock Option, the number of shares of Stock to be
purchased upon exercise, the form of payment to be used, and shall be signed by the person so
exercising the Stock Option.

     (b) Form of Payment. Payment of the full Exercise Price for shares of Stock purchased under
this Award Agreement shall accompany the Participant’s written notice of exercise, together with
full payment for applicable withholding taxes, if any. Payment shall be made (i) in cash or by
check, draft or money order payable to the order of the Company; (ii) by delivering shares of
Common Stock having a Fair Market Value on the date of payment equal to the amount of the exercise
price, but only to the extent such exercise of an Option would not result in a compensation expense
to the Company for financial accounting purposes with respect to the shares used to pay the
exercise price unless otherwise determined by the Committee; or (iii) a combination of the
foregoing.

     (c) Further Information. In the event the Stock Option is exercised, pursuant to the
foregoing provisions of this Section 6, by any person other than the Participant due to the death
of the Participant, written notice shall also be accompanied by appropriate proof of the right of
such person to exercise the Stock Option. The notice so required shall be given by personal
delivery to the Secretary of the Company or by registered or certified mail, addressed to the
Company at 20 North Broadway, Oklahoma City, Oklahoma 73102-8260, Attention: Secretary, and it
shall be deemed to have been given when it is so personally delivered or when it is so deposited in
the United States mail in an envelope addressed to the Company, as aforesaid, properly stamped for
delivery as a registered or certified letter.

     Section 7. Securities Law Restrictions. The Stock Option shall be exercised and Stock issued
only upon compliance with the Securities Act of 1933, as amended (the “Act”), and any other
applicable securities law, or pursuant to an exemption therefrom. If deemed necessary by the
Company to comply with the Act or any applicable laws or regulations relating to the sale of
securities, the Participant, at the time of exercise and as a condition imposed by the Company,
shall represent, warrant and agree that the shares of Stock subject to the Stock Option are being
purchased for investment and not with any present intention to resell the same and without a view
to distribution, and the Participant shall, upon the request of the Company, execute and deliver to
the Company an agreement to such effect. The Participant acknowledges that any stock certificate
representing Stock purchased under such circumstances will be issued with a restricted securities
legend.

     Section 8. Notices. All notices or other communications relating to the Plan and this Award
Agreement as it relates to the Participant shall be in writing and shall be delivered personally or
mailed (U.S. Mail) by the Company to the Participant at the then current address as maintained by
the Company or such other address as the Participant may advise the Company in writing.

	 	 	 
	“COMPANY”

	 	DEVON ENERGY CORPORATION

a Delaware corporation
	 
	 	 
	“PARTICIPANT”

	 	 
	 

	 	 
	 

	 	 
	 

	 	 

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EXHIBIT 10.41

RESTRICTED STOCK AWARD AGREEMENT FOR

DEVON ENERGY CORPORATION

2005 LONG-TERM INCENTIVE PLAN

          THIS
AWARD AGREEMENT (the “Agreement”) entered into as of
_____________ (the “Grant
Date”), by and between Devon Energy Corporation, a Delaware corporation (the “Company”) and
_____________________(the “Participant”);

W I T N E S S E T H:

          WHEREAS, the Company has previously adopted the Devon Energy Corporation 2005 Long-Term
Incentive Plan (the “Plan”); and

          WHEREAS, in connection with the Participant’s employment with the Company, the Company desires
to award to the Participant  ____________ shares of the Company’s Common Stock under the Plan subject to
the terms and conditions of this Agreement; and

          NOW, THEREFORE, in consideration of the premises and the mutual promises and covenants herein
contained, the Participant and the Company agree as follows (all capitalized terms used herein,
unless otherwise defined, have the meaning ascribed to such terms as set forth in the Plan):

          1. The Plan. The Plan, a copy of which is attached hereto as Exhibit A, is hereby
incorporated by reference herein and made a part hereof for all purposes, and when taken with this
Agreement shall govern the rights of the Participant and the Company with respect to the Award (as
defined below).

          2. Grant of Award. The Company hereby grants to the Participant an award (the
“Award”) of ____________ shares of the Company’s Common Stock, par value $.10 (the “Stock”), on the
terms and conditions set forth herein and in the Plan.

          3. Terms of Award.

               (a) Escrow of Shares. A certificate or book-entry registration representing the Stock
subject to the Award (the “Restricted Stock”) shall be issued in the name of the Participant and
shall be escrowed with the Secretary of the Company (the “Escrow Agent”) subject to removal of the
restrictions placed thereon or forfeiture pursuant to the terms of this Agreement.

               (b) Vesting. If the Participant’s Date of Termination has not occurred as of the
vesting dates specified below (the “Vesting Dates”), then, the Participant shall be entitled,
subject to the applicable provisions of the Plan and this Agreement having been satisfied, to
receive on or within a reasonable time after the applicable Vesting Dates, on accumulative basis,
the number of shares of Stock determined by multiplying the aggregate shares of Stock subject to
the Award by the designated percentage set forth opposite the Vesting Date. Once vested pursuant
to the terms of this Agreement, the Restricted Stock shall be deemed “Vested Stock.”

Vesting Schedule

	 	 	 	 	 	 	 	 	 
	 	 	Vesting Dates	 	Percent of Award Vested	 	 
	 

	 	«VestDate1»
	 	 	25	%	 	 
	 

	 	«VestDate2»
	 	 	25	%	 	 
	 

	 	«VestDate3»
	 	 	25	%	 	 
	 

	 	«VestDate4»
	 	 	25	%	 	 

The Participant shall forfeit the unvested portion of the Award (including the underlying
Restricted Stock and “Accrued Dividends,” as such term is hereinafter defined) upon the occurrence
of the Participant’s

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Date of Termination unless the Award becomes vested under the circumstances described in paragraphs
(i), (ii) or (iii) below.

          (i) The Award shall become fully vested upon the occurrence of a Change of Control Event
which occurs prior to the Participant’s Date of Termination. However, if the Participant’s
employment with the Company, the Subsidiaries, and the Affiliated Entities commenced less than 90
days before the Change of Control Event, (I) the Award shall become fully vested under this
subsection (i) only if the Participant’s Date of Termination has not occurred before the
90th day following such date of hire, (II) the Award shall become vested under this
sentence on the 90th day following such date of hire.

          (ii) If the Participant’s Date of Termination occurs under circumstances in which the
Participant is entitled to severance benefits from the Company, a Subsidiary, or an Affiliated
Entity under an employment agreement, severance agreement, or the Devon Energy Corporation
Severance Plan, and the Participant signs and returns to the Company a release of claims against
the Company in a form prepared by the Company (the “Release”), the Award shall become fully vested
upon the date the Release becomes effective and the Restricted Stock shall be released within a
reasonable time after the applicable Vesting date. If the Participant fails to sign and return the
Release to the Company or revokes the Release prior to the date the Release becomes effective, the
unvested shares of Restricted Stock subject to the Award shall be forfeited.

          (iii) The Committee may in its sole and absolute discretion elect to vest all or a portion of
the unvested shares, subject to the Award upon the Participant’s Date of Termination if the
Participant’s Date of Termination occurs by reason of the Participant’s death, Disability, occurs
on or after the Participant’s Normal Retirement Date (as such term is defined in the Company’s
Retirement Plan) or Early Retirement Date (as such term is defined in the Company’s Retirement
Plan), or occurs under other special circumstances (as determined by the Committee).

               (c) Voting Rights and Dividends. The Participant shall have all of the voting rights
attributable to the shares of Restricted Stock. Regular quarterly cash dividends declared and paid
by the Company with respect to the shares of Restricted Stock shall be paid to the Participant.
Any extraordinary dividends declared and paid by the Company with respect to shares of Restricted
Stock (“Accrued Dividends”) shall not be paid to the Participant until such Restricted Stock
becomes Vested Stock. Such Accrued Dividends shall be held by the Company as a general obligation
and paid to the Participant at the time the underlying Restricted Stock becomes Vested Stock.

               (d) Vested Stock — Removal of Restrictions. Upon Restricted Stock becoming Vested
Stock, all restrictions shall be removed from the certificates or book-entry registrations
representing such Stock and the Secretary of the Company shall deliver to the Participant
certificates or a Direct Registration Statement for the book-entry registration representing such
Vested Stock free and clear of all restrictions, except for any applicable securities laws
restrictions, together with a check in the amount of all Accrued Dividends attributed to such
Vested Stock without interest thereon.

               (e) Date of Termination. The Participant’s “Date of Termination” means the first day
occurring on or after the Grant Date on which the Participant is not employed by the Company, a
Subsidiary, or an Affiliated Entity on a full-time basis, regardless of the reason for the
termination of employment (or change from full-time to part-time basis); provided that a
termination of employment shall not be deemed to occur by reason of a transfer of the Participant
between the Company, a Subsidiary, and an Affiliated Entity or between two Subsidiaries or two
Affiliated Entities; and further provided that the Participant’s employment shall not be considered
terminated while the Participant is on a leave of absence from the Company, a Subsidiary, or an
Affiliated Entity approved by the Participant’s employer. If, as a result of a sale or other
transaction, the Participant’s employer ceases to be either a Subsidiary or an Affiliated Entity
(and the Participant’s employer is or becomes an entity that is separate from the Company), and the
Participant is not, at the end of the 30-day period following the transaction, employed by the
Company or an entity that is then a Subsidiary or Affiliated Entity, then the occurrence of such
transaction shall be treated as the Participant’s Date of Termination caused by the Participant
being discharged by the employer.

          4. Legends. The shares of Stock which are the subject of the Award shall be subject
to the following legend:

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“THE SHARES OF STOCK EVIDENCED BY THIS CERTIFICATE OR BOOK-ENTRY REGISTRATION ARE
SUBJECT TO AND ARE TRANSFERABLE ONLY IN ACCORDANCE WITH THAT CERTAIN AWARD AGREEMENT
FOR DEVON ENERGY CORPORATION 2005 LONG-TERM INCENTIVE PLAN DATED
____________ . ANY
ATTEMPTED TRANSFER OF THE SHARES OF STOCK EVIDENCED BY THIS CERTIFICATE OR
BOOK-ENTRY REGISTRATION IN VIOLATION OF SUCH AGREEMENT SHALL BE NULL AND VOID AND
WITHOUT EFFECT. A COPY OF THE AGREEMENT MAY BE OBTAINED FROM THE SECRETARY OF DEVON
ENERGY CORPORATION.”

          5. Delivery of Forfeited Shares. The Participant authorizes the Secretary to deliver
to the Company any and all shares of Restricted Stock that are forfeited under the provisions of
this Agreement. The Participant further authorizes the Company to hold as a general obligation of
the Company any Accrued Dividends and to pay such dividends to the Participant at the time the
underlying Restricted Stock becomes Vested Stock.

          6. Employment. Nothing in the Plan or in this Agreement shall confer upon the
Participant any right to continue in the employ of the Company or any of its Subsidiaries or
Affiliated Entities, or interfere in any way with the right to terminate the Participant’s
employment at any time.

          7. Nontransferability of Award. The Participant shall not have the right to sell,
assign, transfer, convey, dispose, pledge, hypothecate, burden, encumber or charge the Award or any
Restricted Stock or any interest therein in any manner whatsoever.

          8. Notices. All notices or other communications relating to the Plan and this
Agreement as it relates to the Participant shall be in writing and shall be delivered personally or
mailed (U.S. mail) by the Company to the Participant at the then current address as maintained by
the Company or such other address as the Participant may advise the Company in writing.

          9. Binding Effect and Governing Law. This Agreement shall be (i) binding upon and
inure to the benefit of the parties hereto and their respective heirs, successors and assigns
except as may be limited by the Plan, and (ii) governed and construed under the laws of the State
of Oklahoma.

          10. Withholding. The Company and the Participant shall comply with all federal and
state laws and regulations respecting the required withholding, deposit and payment of any income,
employment or other taxes relating to the Award (including Accrued Dividends). The Company shall
withhold the employer’s minimum statutory withholding based upon minimum statutory withholding
rates for federal and state purposes, including payroll taxes, that are applicable to such
supplemental taxable income. Any payment of required withholding taxes by the Participant in the
form of Common Stock shall not be permitted if it would result in an accounting charge with respect
to such shares used to pay such taxes unless otherwise approved by the Committee.

          11. Award Subject to Claims of Creditors. The Participant shall not have any interest
in any particular assets of the Company, its parent, if applicable, or any Subsidiary or Affiliated
Entity by reason of the right to earn an Award (including Accrued Dividends) under the Plan and
this Agreement, and the Participant or any other person shall have only the rights of a general
unsecured creditor of the Company, its parent, if applicable, or a Subsidiary or Affiliated Entity
with respect to any rights under the Plan or this Agreement.

          12. Captions. The captions of specific provisions of this Agreement are for
convenience and reference only, and in no way define, describe, extend or limit the scope of this
Agreement or the intent of any provision hereof.

          13. Counterparts. This Agreement may be executed in any number of identical
counterparts, each of which shall be deemed an original for all purposes, but all of which taken
together shall form one agreement.

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first
above written.

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	“COMPANY”

	 	DEVON ENERGY CORPORATION,
	 

	 	a Delaware corporation
	 
	 	 
	“PARTICIPANT”

	 	 
	 

	 	 
	 

	 	 
	 

	 	 

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