This excerpt taken from the APA DEF 14A filed Mar 30, 2007.
Description of the Proposed Plan
The description of the 2007 Plan set forth below is a summary of the material features of the 2007 Plan as proposed. This summary does not purport to be a complete description of all the provisions of the 2007 Plan and is qualified in all respects by the copy of the 2007 Plan included as Annex B to this Proxy Statement.
The purpose of the 2007 Plan is to provide a means to enhance the profitable growth of Apache and its subsidiaries by attracting and retaining employees and directors, through affording such individuals a means to acquire and maintain stock ownership or awards, the value of which is tied to the performance of the common stock. The 2007 Plan also provides additional incentives and reward opportunities designed to strengthen such individuals concern for the welfare of Apache and our stockholders and their desire to remain in its employ. The 2007 Plan achieves this purpose by permitting grants of (i) incentive stock options (Incentive Options), (ii) options that do not constitute incentive stock options (Nonstatutory Options, and together with Incentive Options, Options), (iii) restricted stock awards (Restricted Stock Awards), (iv) restricted stock units (Restricted Stock Units), (v) stock appreciation rights (SARs), (vi) performance awards, or (vii) any combination of such awards (collectively referred to as Awards). See Securities To Be Offered below.
The 2007 Plan, in part, is intended to qualify under the provisions of section 422 of the Internal Revenue Code of 1986, as amended (the Code). The 2007 Plan is not subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).