STOCK APPRECIATION RIGHTS AGREEMENT OFFICER CLIFF VESTING AWARDS FOR DENBURY RESOURCES INC.
Exhibit 10(g)
| No. SARs [___] | Date of Xxxxx: January 2, 2009 |
OFFICER XXXXX XXXXXXX AWARDS
2004 OMNIBUS STOCK AND INCENTIVE PLAN
A total of ___Stock Appreciation Rights (individually, and collectively, “SAR(s)”) are
hereby granted to ___(the “Holder”) on ___(“Date of Grant”) at the Grant Value
determined in this SAR Agreement, and in all respects subject to the terms, definitions and
provisions, of the 2004 Omnibus Stock and Incentive Plan For Denbury Resources Inc. (the “Plan”),
which is incorporated herein by reference except to the extent otherwise expressly provided in this
SAR Agreement.
1. Grant Value. The Grant Value is $___for each SAR, which value is equal to the
Fair Market Value of a Share on the Date of Grant.
2. Vesting of SAR Agreement Shares. The SARs shall Vest and become “Vested SARs” and
become non-forfeitable (but, without limitation, if unexercised such Vested SARs will expire on
date of the termination of the SAR as set out in Section 6 of this Award) and will become 100%
Vested on occurrence (if any) of the earliest of the dates (“Vesting Date”) set forth in (a)
through (c) below:
| (a) | March 31, 2012; | ||
| (b) | the date of Xxxxxx’s death or Disability; and | ||
| (c) | the date of Holder’s Separation if such Separation occurs after Xxxxxx’s Retirement Vesting Date, provided that such date must be at least one year from the Date of Grant. |
Notwithstanding any other provision to the contrary, if a Change of Control occurs prior to
March 31, 2012, Holder will not be entitled to vest any of the SARs under this SAR Agreement, and
all rights of the Holder to any of the SARs under this Agreement, which are not already vested, and
without notice, shall terminate and be permanently forfeited.
3. Restrictions — Forfeiture of SARs. The SARs are subject to the Restriction that, all
rights of Holder to any SARs which have not become Vested SARs automatically, and without notice,
shall terminate and shall be permanently forfeited on the date of Holder’s Separation.
A-1
4. Amount Payable, and Form of Payment, on Exercise of SAR.
(a) Amount Payable on Exercise of SAR. Upon the Holder’s exercise of the a Vested SAR, the
Holder shall be entitled to receive the SAR Spread, determined as of the date of exercise of the
SAR Agreement, with respect to each SAR exercised on such date. The SAR Spread is the product of
(i) the excess of the Fair Market Value of a Share on the date of exercise over the Grant Value,
multiplied by (ii) the number of SARs exercised.
(b) Form of Payment. Within a reasonable period following the exercise of a Vested SAR, the
Holder will receive Shares having a Fair Market Value, as determined on the date of exercise of the
Vested SAR, equal to the SAR Spread described in Section 4(a) above. Without limiting the
generality of the foregoing, the Holder may choose to use a portion of such Shares to satisfy some
or all of such Holder’s withholding obligations under Section 5(b) of this SAR Agreement.
5. Exercise of SAR Agreement. This SAR Agreement shall not be exercisable prior to the
first date on which a portion of the SARs become Vested SARs, and thereafter (and prior to the
termination of this SAR Agreement), this SAR Agreement shall be exercisable, in whole or in part,
with respect to Vested SARs.
(a) Method of Exercise. Without limitation, this SAR Agreement shall be exercised by
a written notice delivered to the Administrator which shall:
| (i) | state the election to exercise the SAR Agreement and the number of Vested SARs in respect of which it is being exercised; and | ||
| (ii) | be signed by the person or persons entitled to exercise the SAR Agreement and, if the SAR Agreement is being exercised by any person or persons other than the Holder, be accompanied by proof, satisfactory to the Administrator, of the rights of such person or persons to exercise the SAR Agreement. |
(b) Withholding. Upon the exercise of the SAR, the minimum withholding required to be
made by the Company shall be paid by the Holder to the Administrator in cash, or by the delivery of
Shares, which Shares may be in whole or in part Shares acquired through the exercise of this SAR
Agreement, based on the Fair Market Value of such Shares on the date of delivery.
(c) Issuance of Shares. No person shall be, or have any of the rights or privileges
of, a holder of the Shares which would be delivered as a result of the exercise of this SAR
Agreement unless and until certificates representing such Shares shall have been issued and
delivered to such person, such issuance, without limitation, being subject to the terms of the
Plan.
(d) Surrender of SAR Agreement. Upon exercise of this SAR Agreement in part, if
requested by the Administrator, the Holder shall deliver this SAR Agreement and other written
agreements (if any) executed by the Company and the Holder with respect to this SAR Agreement to
the Administrator who shall endorse or cause to be endorsed
A-2
thereon a notation of such exercise and return the SAR Agreement (and other agreements, if
any) to the Holder.
6. Term of SAR Agreement. Without limitation, the unexercised portion of this SAR
Agreement shall automatically and without notice terminate at the time of the earliest to occur of
the following:
| (i) | the 90th day following Xxxxxx’s Separation for any reason except death, Disability, or for Cause; | ||
| (ii) | immediately upon Xxxxxx’s Separation as a result, in whole or in material part, of a discharge for Cause; | ||
| (iii) | the first anniversary of Xxxxxx’s Separation by reason of death or Disability; | ||
| (iv) | the seventh (7th) anniversary of the Date of Xxxxx. |
7. No Transfers Permitted. Neither this SAR Agreement nor the SARs are transferable by
Holder otherwise than by will or the laws of descent and distribution and, so long as an Holder
lives, only Holder or his or her guardian or legal representative shall have the right to exercise
Vested SARs.
8. No Right To Continued Employment. Neither the Plan, nor this SAR Agreement, shall
confer upon Holder any right with respect to continuation of employment by the Company, or any
right to provide services to the Company, nor shall it interfere in any way Holder’s right to
terminate employment, or the Company’s right to terminate Holder’s employment, at any time.
9. Law Governing. WITHOUT LIMITATION, THIS SAR AGREEMENT SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF DELAWARE.
Dated as of this ___day of ___, 200___.
| DENBURY RESOURCES INC. |
||||
| Per: | ||||
| Xxxxxx Xxxxxxx, President & CEO | ||||
| Per: | ||||
| Xxxx Xxxxxxx, Xx. Vice President & CFO | ||||
A-3
Acknowledgment
The undersigned hereby acknowledges (i) my receipt of this SAR Agreement, (ii) my opportunity
to review the Plan, (iii) my opportunity to discuss this SAR Agreement with a representative of the
Company, and my personal advisors, to the extent I deem necessary or appropriate, (iv) my
understanding of the terms and provisions of the SAR Agreement and the Plan, and (v) my
understanding that, by my signature below, I am agreeing to be bound by all of the terms and
provisions of this SAR Agreement and the Plan.
Without limitation, I agree to accept as binding, conclusive and final all decisions or
interpretations (including, without limitation, all interpretations of the meaning of provisions of
the Plan, or SAR Agreement, or both) of the Administrator upon any questions arising under the
Plan, or this SAR Agreement, or both.
Dated as of this ___day of ___, 200_.
| Holder | ||||
A-4
