Document:

Amended and Restated Change of Location Severance Agreement

 Exhibit 10.4 
 PENN VIRGINIA CORPORATION 
 AMENDED AND RESTATED CHANGE OF LOCATION
SEVERANCE AGREEMENT 
 THIS AMENDED AND RESTATED CHANGE OF LOCATION SEVERANCE AGREEMENT (this
“Agreement”) dated as of December 20, 2012 (the “Effective Date”) by and between Penn Virginia Corporation, a Virginia corporation (the “Company”), and Nancy M. Snyder
(“Executive”). 
 WHEREAS, the Company and Executive are parties to a Change of Location Severance
Agreement, dated March 30, 2010, pursuant to which the Company agreed to provide Executive a certain payment in the event Executive elects to resign from employment with the Company as a result of a material change in the geographic location at
which Executive must perform services (the “Existing Agreement”); 
 WHEREAS, the Company and Executive
desire to amend and restate the Existing Agreement as set forth herein; and 
 WHEREAS, the Company and Executive hereby
agree that this Agreement shall supersede and replace the Existing Agreement as of the Effective Date; and 
 WHEREAS,
the Compensation and Benefits Committee of the Board of Directors of the Company has approved this Amended and Restated Agreement. 
 THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Executive agree as follows: 

1. Certain Definitions. 
  

	 	A.	“Bonus” shall mean an amount equal to the highest annual cash bonus paid or payable to Executive by the Company during the two-year period prior to
Executive’s termination of employment. 

  

	 	B.	“Code” shall mean the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder. 

 

	 	C.	“Plan” shall mean the Penn Virginia Corporation 2013 Amended and Restated Long-Term Incentive Plan, as may hereafter be amended, or any successor or
similar plan. 

  

	 	D.	“Relocation” shall mean a material change in the geographic location at which Executive must perform services (which, for purposes of this Agreement,
means the relocation of the Company’s current headquarters in Radnor, Pennsylvania at which Executive is principally employed to a location more than 50 miles from Radnor, Pennsylvania). 

 

	 	E.	 “Termination Base Salary” shall mean that amount equal to Executive’s annual base salary with the Company at the rate in effect
immediately 

	 	
prior to the Relocation or, if a greater amount, Executive’s annual base salary at the rate in effect at any time thereafter or during the two-year period prior thereto.

 2. Termination of Employment. Executive may initiate a termination of Executive’s employment with
the Company if a Relocation occurs. If the Company decides to complete a Relocation, the Company must notify Executive in writing (the “Company Notice”) not less than two months prior to the commencement of such Relocation. In order
for Executive to terminate Executive’s employment with the Company hereunder, Executive must object in writing (“Executive’s Notice”) to the Company within 30 days following the date of the Company Notice, the Company
shall have 30 days after the date of Executive’s Notice in which to remedy the decision to complete a Relocation by rescinding such decision and give Executive written notice of such rescission, and Executive’s employment must terminate at
the end of such 30-day cure period (the “Termination Date”) if such decision is not rescinded. If Executive reasonably determines that the Company has decided to complete a Relocation, but the Company has failed to send the Company
Notice, Executive may send Executive’s Notice, and the Company shall have 30 days after the date of such Executive’s Notice in which to notify Executive in writing that the Company will not complete a Relocation. If the Company does not
provide such written notice within such 30-day period, Executive’s employment must terminate at the end of such 30-day period and, in such event, such date shall be the Termination Date. Notwithstanding any provision to the contrary herein, in
the event of a Relocation, the Company may request Executive to provide services for a specified transition period, upon such terms and conditions as mutually agreeable to the Company and Executive, consistent with the requirements of section 409A
of the Code. 
 3. Relocation Severance Benefits. Upon termination of Executive’s employment as described in
Section 2 above, Executive shall receive the following compensation and benefits from the Company subject to the execution (and non-revocation within eight days thereafter) and delivery to the Company of a release, substantially in the form
attached as Exhibit A hereto, with such changes as the Company reasonably determines must be made to comply with applicable law at the time of such execution (the “Release”): 

 

	 	A.	 The Company shall, at the time provided in Section 3H, pay to Executive in a lump sum, in cash, an amount equal to three times the sum of
Executive’s (i) Termination Base Salary and (ii) Bonus; provided, however, that, if any payment to be made, or benefit to be provided, to or on behalf of Executive pursuant to this Agreement (the “Payments”)
results in Executive being subject to the excise tax imposed by Section 4999 of the Code (or any successor or similar provision) (the “Excise Tax”), the amount payable to Executive under this Section 3A shall be reduced so
that the Payments do not result in Executive being subject to the Excise Tax. One or more determinations as to (a) whether any of the Payments will be subject to the Excise Tax and (b) the amount of the Excise Tax imposed thereon, shall be
made by the Company in consultation with such accounting and tax professionals as the Company considers necessary (with all costs related thereto paid by the Company). For purposes of determining whether any of the Payments will be subject

  
 2 

	 	
to the Excise Tax, (i) all of the Payments shall be treated as “parachute payments” (within the meaning of section 280G of the Code) unless and to the extent that, in the written
advice of an independent accountant selected (and paid for) by the Company and reasonably acceptable to Executive (the “Accountant”), certain Payments should not constitute parachute payments, and (ii) all “excess
parachute payments” (within the meaning of section 280G of the Code) shall be treated as subject to the Excise Tax unless and only to the extent that the Accountant advises the Company that such excess parachute payments are not subject to the
Excise Tax. 

  

	 	B.	As of the date of Executive’s termination of employment (i) all Plan awards (other than options or stock appreciation rights) shall become 100% vested and all
restrictions thereon shall lapse and the Company shall promptly deliver to Executive that amount of cash or number of unrestricted shares of Company stock, as applicable, payable upon the occurrence of a change of control under the award agreements
related to such vested awards and (ii) each outstanding option or stock appreciation right of Executive shall become 100% vested and exercisable and shall, notwithstanding anything stated to the contrary in the Plan or any award agreement
related thereto, remain exercisable for the remainder of such option’s or stock appreciation right’s term; provided that, in the event that a change of control as defined in the Plan occurs during such term, such option or stock
appreciation right shall be treated in the same manner as the options or stock appreciation rights held by the Company’s executive officers at the time of the change of control. 

 

	 	C.	The Company shall pay to Executive in a lump sum, at the time provided in Section 3H, that amount equal to three times the product of (x) the total medical
and dental insurance premiums paid or payable by the Company with respect to Executive and Executive’s eligible family members during the month in which Executive’s employment terminates times (y) 12. 

 

	 	D.	For the 24-month period beginning on the Termination Date, or until Executive begins other full-time employment with a new employer, whichever occurs first, Executive
shall be entitled to receive outplacement services that are directly related to Executive’s termination of employment and are actually provided by an outplacement services firm, paid by the Company, with a nationally prominent executive
outplacement service firm selected by the Company and reasonably acceptable to Executive; provided, however, that the period during which the outplacement services will be covered and the reimbursements paid do not extend beyond the periods
set forth in Treas. Reg. §1.409A-1(b)(9)(v)(E). 

  

	 	E.	 Within one week following the eighth day after the execution (without revocation) of the Release, the Company shall provide to Executive a release
substantially in the form attached hereto as Exhibit B, with such changes as the Company reasonably determines must be made to comply 

  
 3 

	 	
with applicable law at the time of such execution. If the Company does not provide the release required pursuant to this subsection E, the Release shall be null, void and without effect, and
Executive shall still receive all of the payments and benefits described in subsections A through D above. 

  

	 	F.	If Executive’s employment with the Company terminates prior to, but within twelve months of, the date on which a Relocation occurs, and it is reasonably
demonstrated by Executive that such termination of employment was by the Company in connection with or in anticipation of a Relocation, then, for all purposes of this Agreement, the Company’s Notice and Executive’s Notice shall be deemed
to have been given, the Company shall be deemed not to have rescinded its decision to commence a Relocation and the Relocation shall be deemed to have occurred on the date immediately prior to the date of such termination of Executive’s
employment; provided, however, that the amount of payments and benefits that Executive is entitled to receive hereunder as a result of such Relocation shall be reduced by the amount of all other severance payments and benefits previously
received by Executive in connection with such termination and, notwithstanding any provision to the contrary herein, shall be paid to Executive within 30 days after the six-month anniversary of the date of Executive’s termination of employment.

  

	 	G.	The Company may withhold from any amounts or benefits payable under this Agreement all such amounts as it shall be required to withhold pursuant to any applicable law
or regulation. 

  

	 	H.	Payment of the amounts described in subsections A through C above shall be made within 30 days after the Termination Date (provided that the Release has been executed
and has not been revoked) and shall be made by mail to the last address provided for Executive in the Company’s records. Any payment not timely made by the Company under this Agreement shall bear interest at 18% per annum or, if less, at
the highest nonusurious rate permitted by applicable law. 

 This Agreement shall be interpreted to avoid any
penalty sanctions under section 409A of the Code. If any payment or benefit cannot be provided or made at the time specified herein without incurring sanctions under section 409A of the Code, then such benefit or payment shall be provided in full at
the earliest time thereafter when such sanctions will not be imposed. For purposes of section 409A of the Code, all payments to be made upon a termination of employment under this Agreement may only be made upon a “separation from service”
within the meaning of such term under section 409A of the Code and each payment under this Agreement shall be treated as a separate payment. All reimbursements and in-kind benefits provided under this Agreement shall be made or provided in
accordance with the requirements of section 409A of the Code, including, where applicable, the requirement that (i) any reimbursement shall be for expenses 

  
 4 

 
incurred during Executive’s lifetime (or during a shorter period of time specified in this Agreement), (ii) the amount of expenses eligible for reimbursement, or in-kind benefits
provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, (iii) the reimbursement of an eligible expense will be made on or before the last day of
the calendar year following the year in which the expense is incurred and (iv) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. 

Notwithstanding any provision of this Agreement to the contrary, if, at the time of Executive’s “separation from service”
with the Company, the Company has securities which are publicly traded on an established securities market and Executive is a “specified employee” (as defined in section 409A of the Code) and it is necessary to postpone the commencement of
any compensation payments or benefits otherwise payable pursuant to this Agreement as a result of such “separation from service” to prevent any accelerated or additional tax under section 409A of the Code, then the Company will postpone
the commencement of the payment of any such compensation payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to Executive) that are not otherwise paid within the “short-term deferral
exception” under Treas. Reg. section 1.409A-1(b)(4) and the “separation pay exception” under Treas. Reg. section 1.409A-1(b)(9)(iii), until the first payroll date that occurs after the date that is six months following
Executive’s “separation from service” with the Company. If any payments or benefits are postponed due to such requirements, such amounts will be paid in a lump sum to Executive on the first payroll date that occurs after the date that
is six months following Executive’s “separation from service” with the Company. If Executive dies during the postponement period prior to the payment of the postponed amount, the amounts postponed on account of section 409A of the
Code shall be paid to the personal representative of Executive’s estate within 60 days after the date of Executive’s death. In no event shall Executive, directly or indirectly, designate the calendar year of payment. 

4. Assignment. All of the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be
enforceable by the respective heirs, executors, administrators, legal representatives, successors and assigns of the parties hereto. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation,
reorganization or otherwise) to all or substantially all of the business and/or assets of the Company to, and each successor shall, assume expressly in writing prior to the effective date of such succession and agree to perform this Agreement in the
same manner and to the same extent that the Company would be required to perform if no succession had taken place. 
 5.
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia without regard to conflicts of law principles. 

  
 5 

 6. Entire Agreement. This Agreement sets forth the entire agreement of the parties
hereto and supersedes any and all existing agreements and understandings (including, without limitation, the Existing Agreement) concerning the subject matter hereof, it being understood that the Amended and Restated Change of Control Severance
Agreement existing between the Company and Executive concerns a different subject matter than this Agreement. This Agreement may be changed only by a written document signed by Executive and the Company. 

7. Counterparts. This Agreement may be executed in any number of counterparts (including facsimile counterparts), each of which
shall be an original, but all of which together shall constitute one instrument. 
 IN WITNESS WHEREOF, the parties
hereto have executed this Agreement as of the date and year first above written. 
  

			
	 PENN VIRGINIA CORPORATION

		
	 By:
	 	 /s/ H. BAIRD WHITEHEAD

	 Name:
	 	H. Baird Whitehead
	 Title:
	 	President and Chief Executive Officer

 

	
	 EXECUTIVE

	
	 /s/ NANCY M. SNYDER

	 Nancy M. Snyder

  
 6Penn Virginia Corporation 2011 Annual Incentive Cash Bonus

 Exhibit 10.5 
 PENN VIRGINIA CORPORATION 
 2011 ANNUAL INCENTIVE CASH BONUS AND
LONG-TERM EQUITY 
 COMPENSATION GUIDELINES 

 

	1.	Purpose of the Guidelines. 

The purpose of the Guidelines is to provide annual and long-term incentive frameworks that are performance driven and focused on corporate
and individual quantitative and qualitative objectives that are critical to the Company’s success. 
  

	2.	Definitions. 

 The
following terms used herein shall have the following meanings: 
 (a) “Board” means the Board of Directors of
the Company. 
 (b) “Budget” means the Company’s annual budget for the applicable Plan Year, as approved by
the Board. 
 (c) “Cash Bonus Award” means an incentive cash bonus award granted to a Participant pursuant to
the Guidelines that is paid in a lump sum cash payment. 
 (d) “Cash Bonus Percentages” shall mean those cash
bonus award percentages described on Exhibit A under the heading “Cash Bonus Percentages – Executive Officers – Percent of Base Salary.” 
 (e) “Cash Bonus Pool” means that amount of cash actually available for Cash Bonus Awards in any given Plan Year, as determined in accordance with Section 3 of the Guidelines.

 (f) “Cash Bonus Pool Target” means, with respect to any given Plan Year, the total amount of cash that would
be payable as Cash Bonus Awards with respect to such Plan Year to all Participants if each Participant received his or her Target Cash Bonus. 
 (g) “Cash Costs per Mcfe” means, with respect to any given Plan Year, (x) the sum of the Company’s cash lease operating, gathering, processing and transportation expenses,
production and ad valorem taxes and general and administrative expenses during such Plan Year as set forth in the Financial Statements divided by (y) the Company’s total Production during such Plan Year measured in Mcfe. 

(h) “CEO” means the Company’s Chief Executive Officer. 

(i) “Committee” means the Compensation and Benefits Committee of the Board. 

(j) “Company” means Penn Virginia Corporation and its subsidiaries. 

(k) “Company Performance Measures” means, with respect to Plan Year 2011, NAV per share, EBITDAX, Production, Reserves
and Cash Costs per Mcfe. The Committee shall, by resolution, determine the Company Performance Measures for each Plan Year after 2011. 

 (l) “Drilling F&D Costs per Mcfe” means (x) the sum of the
Company’s drilling and completion capital costs related to all wells completed or identified as dry holes during such Plan Year, including any capital costs incurred in any previous Plan Year related to the drilling of, or otherwise in
connection with, such wells divided by (y) the Company’s proved reserves developed as a result of such wells measured in Mcfe by the Company’s independent third party engineering firm. 

(m) “EBITDAX” shall have the meaning assigned to such term in the Company’s Credit Agreement dated
November 18, 2009, as amended, restated or replaced. 
 (n) “Employee Stock Incentive Plan” means the
Company’s Seventh Amended and Restated 1999 Employee Stock Incentive Plan, as amended, restated or replaced. 
 (o)
“Executive Officer” means the Company’s CEO, Chief Financial Officer, Chief Operating Officer and Chief Administrative Officer and any other officers which the Committee may, by resolution, identify as an Executive Officer.

 (p) “Financial Statements” means the Company’s audited financial statements as of
and for the year ended December 31st of the
applicable Plan Year. 
 (q) “Guidelines” means these 2011 Annual Incentive Cash Bonus and Long-Term Equity
Compensation Guidelines. 
 (r) “Individual Performance Measures” means those objective and subjective
corporate and individual measures that (i) the CEO considers in recommending to the Committee, and that the Committee uses to determine, the Cash Bonus Award and Long-Term Equity Compensation Award of each Executive Officer other than the CEO,
(ii) the Committee considers in determining the Cash Bonus Award and Long-Term Equity Compensation Award of the CEO and (iii) the CEO considers in approving Cash Bonus Awards and Long-Term Equity Compensation Awards of Participants other
than the Executive Officers. 
 (s) “Long-Term Equity Compensation Award” means an incentive equity award
determined to be granted to a Participant pursuant to the Guidelines that is denominated in a dollar amount and that is paid out in the form of an award under the Employee Stock Incentive Plan. 

(t) “Mcfe” means million cubic feet equivalent. 

(u) “NAV per share” means, with respect to any given Plan Year, (x) that amount equal to
(A) the value of the Company’s Oil and Gas Assets on December 31st of such Plan Year as set forth in the Financial Statements plus (B) the Company’s cash on December 31st of such Plan Year as set forth in the Financial Statements minus (C) the Company’s total long-term debt
outstanding on December 31st of such Plan Year as set
forth in the Financial Statements divided by (y) the weighted average total number of fully diluted shares of the Company’s common stock issued and outstanding during such Plan Year. 

  
 2 

 (v) “Oil and Gas Assets” means those assets comprising the Company’s
property and equipment as set forth in the Financial Statements. 
 (w) “Participant”
means any employee of the Company who was employed by the Company on December 31st of the Plan Year with respect to whom a Cash Bonus Award or Long-Term Equity Compensation Award is paid. 
 (x) “Performance Level Percentages” means, with regard to Plan Year 2011, the performance level percentages set forth on Exhibit B under the heading “Performance Level
Percentages.” The Committee shall, by resolution, determine Performance Level Percentages for each Plan Year after 2011. 

(y) “Plan Year” means the Company’s fiscal year. 

(z) “Production” means the Company’s net production for the applicable Plan Year as set forth in the Financial
Statements. 
 (aa) “Reserves” means the Company’s proved reserves on
December 31st of the applicable Plan Year as set
forth in the official report prepared by the Company’s independent petroleum engineers for such Plan Year. 
 (bb) “Target Cash Bonus” means, with respect to any Participant, the product of (x) such Participant’s base salary on December 31st of the Plan Year with respect to which a Cash Bonus Award is being
considered times (y) such Participant’s Target Cash Bonus Percentage times (z) a fraction, the numerator of which is the number of days that the Participant was employed by the Company during such Plan Year and the denominator of
which is 365. 
 (cc) “Target Cash Bonus Percentage” means, with respect to Executive Officers, those
percentages described on Exhibit A under the heading “Cash Bonus Percentages – Executive Officers – Percent of Base Salary – Target” and, with respect to Participants other than Executive Officers, the target
percentages for such Participants determined as described on Exhibit A. 
 (dd) “Target Equity Incentive
Percentage” means, with respect to Executive Officers, those percentages described on Exhibit A under the heading “Equity Incentive Percentages – Executive Officers – Target Percent of Base Salary” and, with respect to
Participants other than Executive Officers, the target percentages for such Participants determined as described on Exhibit A. 

(ee) “Weighting Factor” means the weighting percentage assigned to each Company Performance Measure as described on
Exhibit B under the heading “Quantitative Performance Measures and Weighting Factors – Weighting Factors.” 
  

	3.	Calculation of Cash Bonus Pool. 

 The amount of the Cash Bonus Pool available to pay Cash Bonus Awards with respect to each Plan Year shall be that amount equal to the product of (x) the Cash Bonus Pool Target times (y) the sum
of the products of (A) the Performance Level Percentage attained for each Company 

  
 3 

 
Performance Measure times (B) the Weighting Factor for such Company Performance Measure. The Committee shall have the discretion to increase or decrease the Cash Bonus Pool by 15%. The
Committee shall have the discretion to delete, add or change any Performance Measure or the Weighting Factor of any Performance Measure at any time or from time to time for any Plan Year. 

 

	4.	Determination of Cash Bonus Awards and Long-Term Equity Compensation Awards. 

 

	 	(a)	 Individual Performance Measures. Prior to March 1st of each Plan Year: 

 (i) The CEO shall recommend to the Committee Individual Performance Measures for each Executive Officer other than the CEO; 
 (ii) The Committee shall approve Individual Performance Measures for each Executive Officer, including the CEO, and the CEO shall advise each other Executive Officer of his or her Individual Performance
Measures; and 
 (iii) Each Executive Officer other than the CEO shall recommend to the CEO Individual Performance Measures for
each Participant who reports directly to such Executive Officer, the CEO shall approve Individual Performance Measures for such Participants and each Executive Officer shall advise such Participant of his or her Individual Performance Measures.

 Individual Performance Measures for Participants other than the Executive Officers and the Participants reporting directly to the Executive
Officers shall be determined by the CEO or the other Executive Officers if and as they deem necessary. Individual Performance Measures may be weighted to indicate relative importance. The Committee may delete, add or change any Individual
Performance Measure or the relative importance of any Individual Performance Measure applicable to any Executive Officer at any time or from time to time for any Plan Year, and the CEO may take the same such actions with respect to the Individual
Performance Measures of any other Participant. 
  

	 	(b)	 Cash Bonus Awards. Prior to March 1st of each Plan Year: 

 (i) The CEO shall recommend to the Committee a Cash Bonus Award for each Executive Officer with respect to the immediately preceding Plan Year, which recommendation shall be based on (A) the size of
the Cash Bonus Pool available, (B) such Executive Officer’s Threshold, Target and Stretch Cash Bonus Percentages as described on Exhibit A, (C) whether such Executive Officer met, exceeded or did not meet his or her Individual
Performance Measures set for such immediately preceding Plan Year, (D) peer comparison data and (E) such other appropriate criteria as the CEO shall determine; 
 (ii) The Committee shall set the Cash Bonus Award for each Executive Officer, including the CEO, using the same criteria described in subsection (b)(i); and 

(iii) After receiving recommendations from the other Executive Officers, as appropriate, the CEO shall approve all Cash Bonus Awards to
be paid to Participants other than the Executive Officers and shall advise the Committee of the total amount of such Cash Bonus Awards. 

  
 4 

 All Cash Bonus Awards, if any, shall be paid by not later than
March 15th of each Plan Year with respect to the
immediately preceding Plan Year and, subject to the Committee’s discretion to increase the Cash Bonus Pool by 15%, shall not, in the aggregate, exceed the Cash Bonus Pool. 

 

	 	(c)	 Long-Term Equity Compensation Awards. Prior to March 1st of each Plan Year: 

 (i) The CEO shall recommend to the Committee a Long-Term Equity Compensation Award for each Executive Officer with respect to the immediately preceding Plan Year, which recommendation shall be based on
(A) such Executive Officer’s Target Equity Incentive Percentage, (B) whether such Executive Officer met, exceeded or did not meet his or her Individual Performance Measures set for such immediately preceding Plan Year, (C) the
relative importance to the success of the Company’s execution of its strategic objectives of retaining and incentivizing the Executive Officer beyond the current Plan Year, (D) peer comparison data and (E) such other appropriate
criteria as the CEO shall determine; 
 (ii) The Committee shall set the Long-Term Equity Compensation Award for each Executive
Officer, including the CEO, using the same criteria described in subsection (c)(i); and 
 (iii) After receiving recommendations
from the other Executive Officers, as appropriate, the CEO shall approve the Long-Term Equity Compensation Award to be considered by the Committee to be paid to each Participant other than Executive Officers and shall advise the Committee of the
amounts of such awards. All Long-Term Equity Compensation Awards shall be paid out in the form of an award approved by the Committee under the Employee Stock Incentive Plan. 

 

	5.	Interpretation; Amendments. 

 The Committee shall have the power to interpret the Guidelines and to make and amend rules for putting it into effect and administering it. To the extent applicable, grants under the Guidelines shall be
structured either to be exempt from or to comply with the requirements of section 409A of the Code. The provisions of the Guidelines shall be interpreted and applied insofar as possible to carry out such intent. The Guidelines may be amended at any
time or from time to time by the Board or the Committee. 
  

	6.	Governing Law. 

 The
validity, construction and effect of the Guidelines and any rules or regulations relating to the Guidelines shall be determined in accordance with the laws of the Commonwealth of Pennsylvania without regard to its conflict of laws principles.

  

	7.	Effective Date and Term of Guidelines. 

 The Guidelines became effective on February 23, 2011 and shall remain in effect until terminated by the Board. The Guidelines were last amended December 20, 2012. 

  
 5 

 EXHIBIT A 
 CASH BONUS PERCENTAGES 
 Executive Officers 

 

							
	 	  	Percent of Base Salary
	 Officer
	  	Threshold	  	Target	  	Stretch
	 CEO
	  	0 – 50	  	100	  	200
	 COO
	  	0 – 50	  	100	  	200
	 CAO/GC
	  	0 – 40	  	80	  	160
	 CFO
	  	0 – 40	  	80	  	160
	 Sr. VP – Regional Manager
	  	0 – 40	  	80	  	160
	 VP – Regional Manager
	  	0 – 25	  	50	  	100

 Other Employees 
 Prior to March 1st of each Plan Year, the CEO shall approve and advise the Committee of the Target Cash Bonus Percentages for each Participant other than the Executive Officers. Such percentages shall be subject to
increase or decrease in the event of a promotion or demotion. 
 EQUITY INCENTIVE PERCENTAGES 

Executive Officers 
  

			
	 Officer
	  	Target Percent of Base Salary
	 CEO
	  	300 – 400
	 COO
	  	250 – 350
	 CAO/GC
	  	200 – 300
	 CFO
	  	200 – 300
	 Sr. VP – Regional Manager
	  	150 – 300
	 VP – Regional Manager
	  	150 – 300

 Other Employees 
 Prior to March 1st of each Plan Year, the CEO shall approve and advise the Committee of the Target Equity Incentive Percentages for each Participant other than the Executive Officers. Such percentages shall be subject to
increase or decrease in the event of a promotion or demotion. 

  
 A-1

 EXHIBIT B 
 2012 QUANTITATIVE PERFORMANCE MEASURES AND WEIGHTING FACTORS 
  

							
	 Performance

Measure
	  	Weighting
Factor	 	 Level of Attainment*
	  	Performance Level
Percentages
	 Production
	  	30%	 	Over 110% of Budget	  	200%
		  		 	108% to 110% of Budget	  	175%
		  		 	105% to 107% of Budget	  	150%
		  		 	102% to 104% of Budget	  	125%
		  		 	99% to 101% of Budget	  	100%
		  		 	96% to 98% of Budget	  	90%
		  		 	93% to 95% of Budget	  	75%
		  		 	90% to 92% of Budget	  	50%
		  		 	Under 90% of Budget	  	Committee discretion
				
	 Drilling
	  	25%	 	Under 86% of Budget	  	200%
	 F&D Costs
	  		 	86% to 90% of Budget	  	175%
	 per Mcfe
	  		 	91% to 94% of Budget	  	150%
		  		 	95% to 97% of Budget	  	125%
		  		 	98% to 102% of Budget	  	100%
		  		 	103% to 106% of Budget	  	90%
		  		 	107% to 110% of Budget	  	80%
		  		 	111% to 114% of Budget	  	70%
		  		 	115% to 119% of Budget	  	50%
		  		 	Over 119% of Budget	  	Committee discretion
				
	 EBITDAX
	  	15%	 	Over 119% of Budget	  	200%
	 NAV per share
	  	15%	 	115% to 119% of Budget	  	175%
		  		 	110% to 114% of Budget	  	150%
		  		 	105% to 109% of Budget	  	125%
		  		 	96% to 104% of Budget	  	100%
		  		 	92% to 95% of Budget	  	90%
		  		 	88% to 91% of Budget	  	75%
		  		 	84% to 87% of Budget	  	60%
		  		 	80% to 83% of Budget	  	50%
		  		 	Under 80% of Budget	  	Committee discretion
				
	 Cash Costs
	  	15%	 	Under 86% of Budget	  	200%
	 per Mcfe
	  		 	86% to 90% of Budget	  	175%
		  		 	91% to 94% of Budget	  	150%
		  		 	95% to 97% of Budget	  	125%
		  		 	98% to 102% of Budget	  	100%
		  		 	103% to 106% of Budget	  	90%
		  		 	107% to 110% of Budget	  	80%
		  		 	111% to 114% of Budget	  	70%
		  		 	115% to 119% of Budget	  	50%
		  		 	Over 119% of Budget	  	Committee discretion

  

	*	Levels of attainment falling between percentages will be rounded up (0.5 and over) or down (under 0.5), as appropriate 

  
 B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}]]