1
Exhibit 10.26
The following agreement was entered into by the Company with, among others, Xxxx
X. Xxxxxx Executive Vice President and Chief Financial Officer and one other
executive officer, on August 5, 1999.
2
You were a participant in the Burlington Resources Inc. ("BR") Retention Plan
that was adopted effective March 1, 1992 (the "Retention Plan"). The Retention
Plan offered certain benefits, including a pension enhancement, to those
individuals who were employed at BR's Seattle holding company office on January
1, 1992. In connection with your relocation from Seattle to Houston, you were
asked to sign a waiver of your benefits under the Retention Plan. As you may
know, BR has paid a similar pension enhancement to former eligible BR employees
who relocated from Seattle to Houston, even though they had executed such
waivers. Under these circumstances, it would be inequitable not to treat you
similarly.
The purpose of this letter is to confirm that, upon termination of your
employment and execution by you of BR's customary severance agreement, you will
be paid a lump sum pension enhancement that results from the following
modifications to the provisions of BR's Pension Plan (the "Qualified Plan") and
Supplemental Benefits Plan (the "Supplemental Plan") in effect on the date
hereof:
o The "Lump Sum" calculation assumes you are eligible for and commence early
retirement benefits, including the early retirement supplement, at age 60;
o "Final Average Earnings" at age 60 assumes your base salary increases 6%
per year and you receive your maximum bonus opportunity each year; and
o "Integration Level" at age 60 assumes the Social Security Wage Base
increases 5% per year.
The Lump Sum described above will be determined using the actuarial assumptions
being used at the time of such payment with respect to the Qualified Plan (for
example, the discount rate and mortality assumptions) and will be reduced by the
lump sum value of benefits payable from the Qualified Plan and Supplemental Plan
whether or not such benefits are payable in a lump sum.
BURLINGTON RESOURCES INC.
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By: Xxxxx X. Xxxxxxxxx
Its: Chairman of the Board, President
and Chief Executive Officer
