Common use of Performance Level Points Clause in Contracts

Performance Level Points. Maximum: less than a 1% increase in L▇▇ and G&A per Boe of production, measured against 2013 L▇▇ and G&A per Boe of production (~$19.82/Boe) 20 Target: no more than a 5% increase in L▇▇ and G&A per Boe of production, measured against 2013 L▇▇ and G&A per Boe of production (~$20.60/Boe) 10 Threshold: no more than a 7% increase in L▇▇ and G&A per Boe of production, measured against 2013 L▇▇ and G&A per Boe of production (~$20.99/Boe) 5 Below Threshold 0 2014 Adjusted EBITDA, target of $525 million, but taking into account the effect of property sales, if applicable as deemed by the Compensation Committee. 20% 0-40 2014 Adjusted EBITDA Margin Percentage, a target of 60% 15% 0-30 Individual Performance as assessed by management for year 2014 15% 0-30 Total for Overall Company Performance Conditions and Individual Performance Conditions Combined 50% 100 The number of points you receive on each individual scale shall be determined as follows, on straight-line interpolation:

Performance Level Points. Maximum: less than a 1% increase in L▇▇▇ and G&A per Boe of production, measured against 2013 L▇▇▇ and G&A per Boe of production (~$19.82/Boe) 20 Target: no more than a 5% increase in L▇▇▇ and G&A per Boe of production, measured against 2013 L▇▇▇ and G&A per Boe of production (~$20.60/Boe) 10 Threshold: no more than a 7% increase in L▇▇▇ and G&A per Boe of production, measured against 2013 L▇▇▇ and G&A per Boe of production (~$20.99/Boe) 5 Below Threshold 0 2014 Adjusted EBITDA, target of $525 million, but taking into account the effect of property sales, if applicable as deemed by the Compensation Committee. 20% 0-40 2014 Adjusted EBITDA Margin Percentage, a target of 60% 15% 0-30 Individual Performance as assessed by management for year 2014 15% 0-30 Total for Overall Company Performance Conditions and Individual Performance Conditions Combined 50% 100 The number of points you receive on each individual scale shall be determined as follows, on straight-line interpolation: