Document:

QuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.1  

        Adopted
by the Board on February 23, 2005 

 
 

WESTERN GAS RESOURCES, INC.    
    
    AMENDED AND RESTATED DIRECTORS' HEALTH PLAN    
    

        Western Gas Resources, Inc., a Delaware corporation, established the Western Gas Resources, Inc. Directors' Medical Insurance Plan, effective
September 1, 1996, which is hereby renamed the Western Gas Resources, Inc. Amended and Restated Directors' Health Plan, for the benefit of certain current and former members of the board
of directors of the Corporation. The benefits of this Plan are provided pursuant to Sections 104, 105 and 106 of the Code. The amendments made hereby are effective January 1, 2005, and
the Plan is restated as follows: 

        1.     Definitions. 

        a.     Base Health Coverage means coverage substantially similar to benefits provided to the Executive Officers of the
Corporation, from time to time, pursuant to the terms of the Corporation's group health plan(s) which provide medical benefits. 

        b.     Change in Control means one or more of the following events, under the following guidelines: 

        (i)    Change in Ownership. Any one person, or more than one person acting as a group (as defined in Paragraph 1.b.(iv)),
acquires ownership of stock of the Corporation that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of
the Corporation. However, if any one person or more than one person acting as a group is considered to own more than 50% of the total fair market value or total voting power of the stock of
the Corporation, the acquisition of additional stock by the same person or persons shall not be considered to cause a change in the ownership of the Corporation (or to cause a change in the effective
control of the Corporation, within the meaning of Paragraph 1.b.(ii)). An increase in the percentage of stock owned by any one person, or persons acting as a group, as a result of a transaction
in which the Corporation acquires its stock in exchange for property will be treated as an acquisition of stock for this purpose. 

        (ii)   Change in Effective Control. Either (a) any one person, or more than one person acting as a group (as determined
under Paragraph 1.b.(iv)), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) ownership of stock of
the Corporation possessing 35% or more of the total voting power of the stock of the Corporation, or (b) a majority of members of the Corporation's board of directors is replaced during any
12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Corporation's board of directors prior to the date of the appointment or
election; 

        (iii)  Change in Ownership of a Substantial Portion of Assets. Any one person, or more than one person acting as a group (as
determined in Paragraph 1.b.(iv)), acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons) assets from the
Corporation that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the Corporation immediately prior to such acquisition or
acquisitions. For this purpose, gross fair market value means the value of the assets of the Corporation, or the value of the assets being disposed of, determined without regard to any liabilities
associated with such assets. However, there is no Change in Control under this Paragraph 1.b.(iii) when there is a transfer to an entity that is controlled by the shareholders of the
transferring corporation, as provided in Internal Revenue Service Notice 2005-1, A-14(b). 

 

        (iv)  Persons Acting as a Group. For the purposes of this Paragraph 1.b., persons will be not be considered to be
acting as a group solely because they purchase or own stock, or purchase assets, of the Corporation at the same time, or as a result of the same public offering. However, persons will be considered to
be acting as a group if they are the owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock or assets, or similar business transaction with the Corporation.
If a person, including an entity, owns stock in such a corporation and in the Corporation at a time that both of the corporations enter into a merger, consolidation, purchase or acquisition of stock
or assets, or similar transaction, such shareholder is considered to be acting as a group with other shareholders in a corporation only with respect to, and to the extent of, the ownership in that
corporation prior to the transaction giving rise to the change and not with respect to the ownership interest in the other corporation. 

        (v)   Attribution. For purposes of this Paragraph 1.b., the attribution rules of Code Section 318 shall apply to
determine stock ownership. Stock underlying a vested option is considered owned by the individual who holds the vested option (and the stock underlying an unvested option shall not be considered owned
by the individual who holds the unvested option). For purposes of the preceding sentence, however, if a vested option is exercisable for stock that is not substantially vested (as defined by Income
Tax Regulations Sections 1.83-3(b) and (j)), the stock underlying the option is not treated as owned by the individual who holds the option. 

        (vi)  Interpretation under Code Section 409A. The definition of Change in Control under this Paragraph 1.b. is
intended to comply with applicable definitions and requirements of Code Section 409A(a)(1)(B)(2)(v) and Internal Revenue Service Notice 2005-1, Q&A 11-14, and
shall be interpreted consistently therewith. Furthermore, to the extent that further Internal Revenue Service guidance, including notices, rulings, regulations, etc., are issued subsequent to such
Notice 2005-1 and modify the applicable change in control event definitions and requirements, the definition herein of Change in Control shall be deemed to have been modified accordingly
as of the effective date of such change as set forth in such guidance. 

        c.     Code means the Internal Revenue Code of 1986, as amended. 

        d.     Corporation means Western Gas Resources, Inc., a Delaware corporation, and any successor entity. 

        e.     Director means each member of the Board of Directors of the Corporation as of January 1, 2005, and Lanny Outlaw, a
former director of the Corporation, but shall not include any other past or future director. 

        f.      Executive Officer means any Vice President, Executive Vice President and Chief Executive Officer of the Corporation. 

        g.     Medigap Coverage means coverage pursuant to a Medigap policy or any other substantially similar coverage. 

        h.     Participant means any Director or Spouse who is covered by a duly executed Participation Agreement, described in
Paragraph 2 herein, which is received by the Corporation. 

        i.      Plan means the Western Gas Resources, Inc. Amended and Restated Directors' Health Plan. 

        j.      Spouse means an individual who, at any time during a Director's tenure as a director of the Corporation, is such
Director's spouse under applicable state law, but excludes any such individual from and after the time, if any, that the individual becomes a former spouse of a Director (except due to the death of
such Director). 

2

 

        k.     Supplemental Coverage means coverage pursuant to one or more plans which provide medical coverage and benefits
supplemental and secondary to those provided under the Participant's Base Health Coverage and/or other primary health coverage (including Medigap Coverage), and which is substantially similar to the
current coverage provided to the Executive Officers of the Corporation under its Exec-U-Care plan (or other supplemental plan providing similar or expanded coverage which may
subsequently be provided to the Executive Officers of the Corporation). 

        2.     Eligibility and Participation. Subject to the conditions and limitations set forth herein, the Directors shall be eligible
to elect coverage under this Plan as described in this Paragraph 2, effective January 1, 2005: 

        a.     Current Participants. Directors and Spouses who were participating in the Plan as of January 1, 2005, shall
automatically continue to participate; however, each participating Director shall confirm his coverage election by executing and submitting a Participation Agreement to the Corporation, substantially
in the form attached as Exhibit A hereto, confirming: (1) Director-only coverage, (2) Director-plus-Spouse coverage, or (3) surviving
Spouse coverage. Such confirmation election shall be submitted within thirty (30) days of approval of the Plan by the Corporation's board of directors. 

        b.     Future Participants. A Director or surviving Spouse who was not participating in the Plan as of January 1, 2005 may
elect to participate by timely executing and submitting a Participation Agreement to the Corporation, substantially in the form attached as Exhibit A hereto, electing:
(1) Director-only coverage, (2) Director-plus-Spouse coverage, or (3) surviving Spouse coverage. An initial election to participate may be
submitted within thirty (30) days of approval of the Plan by the Corporation's board of directors thereafter, on an annual basis during the Corporation's regular benefits enrollment period, the
Corporation will send Participation Agreements to each Director or surviving spouse, if applicable, permitting such person to elect or amend such person's participation in the Plan. In the event that
such annual Participation Agreement is not executed and submitted to the Corporation by any Director or surviving Spouse, as applicable, then the current participation status of such person shall
remain in effect. In addition, each
Director or surviving Spouse shall be entitled to submit a Participation Agreement at such other times as a change in election is permitted as set forth in the next paragraph. 

        c.     Change in Election. A Director or surviving Spouse may change his or her election, or enroll, during the year, in the same
manner as permitted for Executive Officers, due to: (1) a change in status, (2) Medicare eligibility or entitlement, (3) a change in the cost of coverage, or (4) a change
in the coverage under the employer's plan of the Director's Spouse. In the event a Director who has elected Director-plus-Spouse coverage dies, such Participant's covered
Spouse shall automatically continue coverage under this Plan, and may change coverage in the same manner and for its same reasons as a Director, as previously set forth. 

        d.     No Compromise or Waiver of Rights. If any Director or surviving Spouse is at any time during his and/or her lifetime
ineligible for the benefits hereunder (e.g., due to coverage under another employer-sponsored health plan), such ineligibility will not waive or compromise such person's entitlement to elect
participation at a future time when such restriction on eligibility no longer exists. If any Director or surviving Spouse at any time elects not to complete a Participation Agreement, such election
will not constitute a waiver of such person's entitlement to elect participation at a future time. 

        3.     Health Benefit Coverage.  

         a.     Active Directors. The Corporation shall continue to provide the elected
coverage to each Director
and covered Spouse who was a Participant as of January 1, 2005, based upon such 

3

 

Director's
confirmation of elected coverage. If a Director who is serving on the Board of Directors and who was not a Participant as of January 1, 2005 elects coverage pursuant to
Paragraph 2, the Corporation shall provide such Participant and covered Spouse, if any, with the elected Base Health Coverage and/or Supplemental Coverage. 

        b.     Retired Directors. 

        (i)    Retired Director Under Medicare Eligibility Age. [Except as provided in
Paragraph 3.b.(iv),] if a Director who is under the Medicare eligibility age and retired from the Board of Directors elects coverage pursuant to
Paragraph 2, the Corporation shall provide such Director and covered Spouse, if any (provided such covered Spouse is under the Medicare eligibility age) with the elected Base Health Coverage
and/or Supplemental Coverage. If such covered Spouse has attained the Medicare eligibility age, such Spouse shall obtain her own Medigap Coverage and the Corporation shall provide her with
Supplemental Coverage. 

        (ii)   Retired Director with Covered Spouse Who Has Attained Medicare Eligibility Age or Older. If a Director who has attained
the Medicare eligibility age or older and retired from the Board of Directors elects coverage pursuant to Paragraph 2, each such retired Director and his covered Spouse, if any (if such Spouse
has attained the Medicare eligibility age or older) shall obtain his or her own Medigap Coverage and shall not receive Base Health Coverage. The Corporation shall provide each such Participant with
Supplemental Coverage. 

        (iii)  Retired Director Who Has Attained Medicare Eligibility Age or Older with Covered Spouse Under Medicare Eligibility Age.
If a Director who has attained the Medicare eligibility age or older and retired from the Board of Directors, and who has elected or confirmed coverage pursuant to Paragraph 2, has a Spouse who
is under the Medicare eligibility age, (a) such retired Director shall obtain his own Medigap Coverage and the Corporation shall provide such Director with Supplemental Coverage, and
(b) except as otherwise provided in Paragraph 3.b.(iv), the Corporation shall provide such covered Spouse with elected Base Health Coverage and/or Supplemental Coverage. 

        (iv)  Retired Director or Spouse Under Medicare Eligibility Age with Employer-Sponsored Coverage. 

        (a)   Retired Director Under Medicare Eligibility Age and Coverage Provided by the Employer of Retired Director. In the event
that a retired Director is: 

        (1)   under
the Medicare eligibility age, 

        (2)   entitled
to participate in an employer-sponsored health plan which offers coverage for the Director and his Spouse, if any, and 

        (3)   the
retired Director is obligated to bear less than one-half of the cost of such coverage, 

then
such health plan shall be the primary health coverage for such retired Director and covered Spouse, if any. In addition, unless coverage substantially similar to Supplemental Coverage is provided
by such employer for the Director and his Spouse, if any, the Corporation shall provide such retired Director and covered Spouse, if any, with Supplemental Coverage. 

        In
the event that the employer-sponsored health plan and/or coverage substantially similar Supplemental Coverage is provided solely to the Director, the Director's Spouse, if any, shall
be entitled to receive Base Health Coverage, Medigap Coverage, and/or Supplemental Coverage, as applicable, under the Plan. 

4

 

        (b)   Spouse Under Medicare Eligibility Age and Coverage Provided by the Employer of the Spouse of the Retired Director. In the
event that a Spouse of a retired Director is: 

        (1)   under
the Medicare eligibility age, 

        (2)   entitled
to participate in an employer-sponsored health plan which offers coverage for the Director's Spouse and the retired Director, and 

        (3)   the
retired Director's Spouse is obligated to bear less than one-half of the cost of such coverage, 

then
such health plan shall be the primary health coverage for such retired Director's Spouse and, if the retired Director does not have Medigap Coverage, such Director. In addition, unless coverage
substantially similar to Supplemental Coverage is provided by such employer for the retired Director's Spouse and the retired Director, the Corporation shall provide such retired Director's Spouse and
retired Director with Supplemental Coverage. 

        In
the event that the employer-sponsored health plan and/or coverage substantially similar to Supplemental Coverage is provided solely to the retired Director's Spouse, the retired
Director shall be entitled to receive Base Health Coverage, Medigap Coverage, and/or Supplemental Coverage, as applicable, under the Plan. 

        c.     Funding, Etc. Except as provided in Paragraphs 7 and 8, the type of funding, the coverage and the provider(s) for the Base
Health Coverage and the Supplemental Coverage shall be determined and may be changed from time to time, by the Board in its sole discretion. 

        4.     Pre-existing Condition Limitations. Each Participant's coverage under the Plan shall be subject to such
pre-existing condition provisions as set forth in the documents governing the Participant's Base Health Coverage, primary health coverage and Supplemental Coverage. 

        5.     Payment of Premiums. 

        a.     Base Health Coverage and Supplemental Coverage. For Base Health Coverage and/or Supplemental Coverage, the Corporation
shall pay the entire premium for any insured coverage and the Participant (or his covered surviving Spouse) shall reimburse (or, in the case of coverage which is self-funded by the
Corporation, shall pay to) the Corporation, in the manner set forth in Paragraph 5.d., the portion of the cost of health coverage equal to the then current amount paid by an Executive Officer
for the coverage selected. In the case of a covered surviving Spouse, the amount shall be the cost for an Executive Officer for employee only coverage. 

        b.     Medigap Coverage. For Medigap Coverage, a Participant (or his covered surviving Spouse) shall be responsible for paying
the premium. The Corporation shall reimburse each such Participant (or his covered surviving Spouse) the amount described in Paragraph 5.c., and in the manner described in
Paragraph 5.d., towards the cost of the health insurance premiums for the Medigap Coverage obtained. 

        c.     Corporation's Share of Costs. 

        (i)    Cost of Coverage for Paragraph 5.a. The costs paid by the Corporation for the coverage in Paragraph 5.a.
shall be the difference between the total cost of coverage and the amount paid by the Director (or his covered surviving Spouse). 

        (ii)   Cost of Coverage for Paragraph 5.b. The costs paid by the Corporation for the coverage in Paragraph 5.b.
shall be the difference between the total cost of coverage and the lowest then current amount paid by an Executive Officer for any Base Health Coverage then offered by the Corporation, for the same
level of coverage (i.e., employee only, or employee 

5

 

plus
spouse coverage). In the case of a covered surviving Spouse, the lowest then current amount shall be the lowest such cost for employee only coverage. 

        d.     Reimbursements. 

        (i)    To the Corporation. In the event the Corporation pays costs for coverage which is to be paid all or in part by a Director
or surviving Spouse, such person shall repay that person's share of costs to the Corporation within thirty (30) days of the date the Corporation sends an invoice to such person (at such
person's last known address in the records of the Corporation) or may, by mutual agreement, be
withheld from fees payable to the Directors by the Corporation. In the event an invoice is not paid within sixty (60) days after the invoice was sent, the Corporation may terminate coverage
under the Plan for the related Participant(s). The date reflected on the invoice shall be presumed to be the date the invoice was sent, in the absence of clear and convincing evidence that it was not
sent on such date and reasonable evidence of the date actually sent is provided. 

        (ii)   From the Corporation. The Corporation shall reimburse any amount paid by the Director or surviving Spouse for such costs
within thirty (30) days after such person submits evidence of payment to the Corporation on such form(s) and with such supporting documentation as the Corporation determines to be appropriate,
but no later than sixty (60) days after the end of the calendar year of the payment. 

        6.     Continuation of Benefits. Benefits shall continue under this Plan for the life of the Director and the Director's Spouse. 

        7.     No Reduction in Benefits. This Plan is established with the intention of being maintained for an indefinite period of time
and is maintained for the exclusive benefit of the individuals eligible to participate. Except as required by law, the benefits provided under this Plan, including but not limited to,  [the type of coverage, level of coverage,
copayment amounts, deductible amounts, and coinsurance requirements, even if reduced for Executive Officers under coverage
provided by the Corporation], may not be reduced or terminated, without the consent of all affected eligible Directors and Spouses. 

        8.     Change in Control. If a Change in Control occurs, the Corporation or its successor entity shall provide eligible Directors
and Spouses with Base Health Coverage, Supplemental Coverage and Medigap Coverage substantially similar to the most favorable health benefits coverage provided to the executive officers of the
Corporation, the successor entity, if any, or any affiliate of the successor entity determined under rules similar to the rules of Code Sections 414(b) and (c), provided that such
coverage may not be substantially less than the coverage received by Participants immediately prior to the Change in Control. 

        9.     Claims Review Procedure(s). The claims procedures under this Plan for obtaining benefits shall be the same as, and are set
forth, in the description of benefits under each health plan document, which shall be provided separately to each Participant. 

        10.   Federal Income Taxation. The premiums paid or reimbursed by the Corporation for health benefits payable under the Plan
shall be included in gross income pursuant to Code Section 104 and shall be reported as taxable income on an Internal Revenue Service Form 1099 (or other applicable form) to the Director
or the surviving Spouse, as applicable, except to the extent the payments or reimbursements are for Medigap Coverage or insured benefits provided by the Corporation to Directors who are former
employees of the Corporation, or their Spouses, and which are excludible from income under Code Sections 105 or 106. 

        11.   No COBRA coverage. No continuation coverage under COBRA applies to benefits under this Plan. 

6

 

        12.   Policies, Rules and Procedures. The Corporation may establish such policies, rules and procedures as it deems
appropriate for the administration of the Plan. 

        13.   Interpretation and Decisions. The Corporation shall have the full power, in its sole discretion, to interpret the
provisions of, and render decisions on the administration of, the Plan. The purpose of this Plan being to provide health care benefits to the Directors, any ambiguity that may exist herein shall be
interpreted liberally in favor of providing such benefits. 

        14.   Effective Date. This Plan is a continuation and clarification of various provisions of the Plan, which was established
effective September 1, 1996. The terms of this Amended and Restated Directors' Health Plan shall be effective from and after January 1, 2005. This Plan supersedes all prior plans or
agreements concerning the benefits provided under this Plan. 

        The
undersigned, John C. Walter, hereby certifies that he is the duly elected and acting Secretary of Western Gas Resources, Inc. and that the foregoing Amended and Restated Plan
was adopted by the Board of Directors of the Corporation on the 23rd day of February, 2005. 

	 	 	/s/  JOHN C. WALTER      
 Print Name: John C. Walter Date: 2/24/05

7

 
EXHIBIT A

PARTICIPATION AGREEMENT

FOR THE

WESTERN GAS RESOURCES, INC. DIRECTORS' HEALTH PLAN  

        The undersigned member or former member of the Board of Directors of Western Gas Resources, Inc. ("Corporation"), or surviving Spouse of such member,
hereby elects to participate in the Western Gas Resources, Inc. Directors' Health Plan ("Plan") for the coverage option selected below. 

        The
undersigned also acknowledges receipt of a copy of the Plan, and agrees to be bound by the terms thereof. 

        Coverage
option(s) selected for Plan year 200  : 

Director only
  My birthdate is                        . I am electing the
following coverage(s): 

Base
Health and Exec-U-Care Coverage

Exec-U-Care Coverage only

Medigap reimbursement and Exec-U-Care Coverage (for a retired Director age 65 or older) 

Director plus Spouse
  My birthdate is                        . My Spouse's
birthdate is                        . I am electing the following coverage(s): 

Director
Spouse 

Base
Health and Exec-U-Care Coverage

Exec-U-Care Coverage only

Medigap reimbursement and Exec-U-Care Coverage (for a retired Director and/or a covered Spouse age 65 or older) 

Surviving Spouse
  My birthdate is                        . I am electing the
following coverage(s): 

Base
Health and Exec-U-Care Coverage

Exec-U-Care Coverage only

Medigap reimbursement and Exec-U-Care Coverage (for a surviving Spouse age 65 or older) 

	

 	
 	

	 	 	Participant's/Surviving Spouse's Signature	 	Date

	

Received by the Corporation:	
 	

 
	

by:	
 	

 Signature

Print Name:

Title:

Date received:	
 	

 

8

QuickLinks

WESTERN GAS RESOURCES, INC. AMENDED AND RESTATED DIRECTORS' HEALTH PLANQuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.1  

 
 

Forest Oil Corporation    
    
    Annual Incentive Plan    
    
    2005    
    

  

 

Forest Oil Corporation

2005 Annual Incentive Plan  

Summary  

Plan Objectives  

        The Annual Incentive Plan (the "Plan") has been designed to meet the following objectives: 

	•
	Provide
an annual incentive plan framework that is performance-driven and focused on objectives that are critical to the Company's success.

	•
	Offer
competitive cash compensation opportunities to all key employees.

	•
	Reward
outstanding achievement. 

Basic Plan Concept  

        The Plan generally provides annual incentive awards, which will be determined primarily on the basis of the Company's consolidated results on selected financial,
operating and other performance measures. However, business unit or department performance and individual performance should also be
considered in determining the actual participant award payout. Therefore, the Company shall have the flexibility to adjust individual awards to reflect individual/team performance. 

Performance Measures and Weights  

        Each year the Company will establish the threshold, target and outstanding performance levels on each performance measure and its appropriate weighting. These
performance measures and their weighting will be reviewed over time (and modified, if appropriate) in light of changing Company priorities and strategic objectives. 

        The
recommended 2005 Company performance measures and their respective weightings are described in detail on Attachment I. 

Award Opportunities  

        The 2005 Plan target awards for Plan participants by position (expressed as a percentage of annual salary) are set forth on Attachment II. 

Plan Administration  

        The Plan will be administered by the Compensation Committee ("Committee") of the Board of Directors and the President and Chief Executive Officer ("CEO") (for all
positions except his own). Certain elements of the Plan administration will be delegated to the senior Human Resources executive of the Company. The Executive Vice President and Chief Financial
Officer will verify the performance calculation for the performance and operating measures in consultation with the Senior Vice President, Corporate Planning and Development who shall be responsible
for the estimation of the Company's oil and gas reserves.

 

        Actual
performance goals, standards, award determinations and modifications to the Plan design must be approved by the Committee. 

	Measure
 
	 	Weighting (Example)
	 
	Total Shareholder Return	 	20	%
	Cash Cost	 	20	%
	Acquisitions	 	20	%
	Production	 	20	%
	Rate of Return on Capital Investments	 	20	%
	 	Total Financial and Operating	 	100	%

        Once
the total bonus pool has been established following the performance calculations, the CEO shall have the discretion to distribute bonus monies within business units and the
corporate group or to move monies from one group to another, based on his assessment (with advice of other senior managers) as to individual or group performance. 

Targets  

        Targets for the total Plan will be set consistent with the following: 

	•
	Threshold—Level
at which minimum payout occurs. The threshold percentage is 25% of the target award percentage.

	•
	Target—Level
at which the participant receives the target award percentage.

	•
	Outstanding—Level
at which the participant receives 200% of the target award percentage. 

        Completion
percentages between Threshold, Target and Outstanding will be determined, with the exception of Total Shareholder Return, by interpolation. Completion for results above
Outstanding will be directly proportional to the change in completion between Target and Outstanding. 

        The
Completion Percentage for Total Shareholder Return is defined on the page describing the Total Shareholder Return measure. Targets shall be adjusted for material changes made during
the year to the business plan or scope thereof, or to the capital expenditure budget. 

Maximum Completion  

        Although there will be no limit on completion of individual financial measures, completion for the total Plan will be limited to 200% of target. 

Performance Levels  

        Performance levels will be set for individual measures. Results below the Threshold will equate to a zero completion percentage. 

        A
minimum 25% completion threshold is required for the total Plan. 

Completion Calculation  

        Completion for total financial measures will be the sum of the weighted completion for each individual measure. Weighted completion for each individual measure
will be equal to the completion percentage of each measure times the weighting for that measure.

 

Property Sales  

        In computing results, non-budgeted property sales are not to be considered. To avoid non-budgeted property sales from affecting results,
they will be incorporated into performance measures as though they had been budgeted. 

Participants  

        The CEO of the Company shall determine which employees are to be participants in the Plan. If a participant retires, dies or becomes disabled prior to the payment
of a bonus award, he or she (or the estate, in the case of death), will receive a pro rata portion of the award based upon actual earned salary in the award year. If a participant's employment with
the Company is terminated for any other reason prior to payment, no bonus award will be paid. 

        Plan
participants who change positions and/or have their individual target incentive levels changed during the Plan year will have their award prorated accordingly. All awards paid will
be rounded to the nearest $100. 

        Incentive
compensation awards will be calculated based upon the participant's base salary in effect at the end of the Plan year or earned salary if the participant was a new hire during
the year. 

Board of Directors' Discretion  

        The granting of any and all individual incentive compensation awards is at the discretion of the Forest Oil Corporation Board of Directors. 

QuickLinks

Forest Oil Corporation Annual Incentive Plan 2005

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]