Establishment and Objectives. 1. The Agreement shall be governed in accordance with the following principles:
Establishment and Objectives. EP Energy, L.L.C. hereby establishes a cash-based incentive compensation plan to be known as the “EP Energy 2012 Omnibus Incentive Plan” (hereinafter referred to as the “Plan”). The Plan shall become effective on May 25, 2012 (the “Effective Date”) and shall remain in effect until such time as it is amended or terminated as set forth in Section 11 hereof. The objectives of the Plan are to promote the interests of the Company and its equity investors by strengthening the Company’s ability to attract and retain the employment and or services of Participants (as hereinafter defined) through discretionary bonuses based on the performance of the Company and/or the Participants relating to specified objective financial and business criteria, thereby aligning their interests and efforts to the long-term interests of the Company’s equity investors, and to provide them with a direct incentive to achieve the Company’s strategic and financial goals.
