Executive Excess Benefit Plan

EXHIBIT 10(g)


MITCHELL ENERGY & DEVELOPMENT CORP.
EXECUTIVE EXCESS BENEFIT PLAN
(Adopted Effective as of July 1, 1998)


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MITCHELL ENERGY & DEVELOPMENT CORP.
EXECUTIVE EXCESS BENEFIT PLAN


(Adopted Effective as of July 1, 1998)


TABLE OF CONTENTS
Page
---- ARTICLE I. ESTABLISHMENT AND PURPOSE....................................................................... 1


1.1. Establishment and Amendment of Plan............................................................. 1
1.2. History and Purpose............................................................................. 1
1.3. Application of the Plan......................................................................... 2


ARTICLE II. DEFINITIONS AND CONSTRUCTION.................................................................... 2


2.1. Definitions..................................................................................... 2
2.2. Gender and Number; Headings..................................................................... 4
2.3. Incorporation of the Retirement Plan............................................................ 4


ARTICLE III. PARTICIPATION................................................................................... 4


3.1. Eligibility..................................................................................... 4
3.2. Participation................................................................................... 5


ARTICLE IV. BENEFITS........................................................................................ 5


4.1. Amount of Benefits.............................................................................. 5
4.2. Form of Payment and Commencement Date........................................................... 6
4.3. Vesting......................................................................................... 7
4.4. Death Benefits.................................................................................. 7


ARTICLE V. ADMINISTRATION.................................................................................. 8


5.1. Administration.................................................................................. 8
5.2. Finality of Determination....................................................................... 8
5.3. Expenses........................................................................................ 8
5.4. Indemnification and Exculpation................................................................. 8


ARTICLE VI. FUNDING OF THE PLAN............................................................................. 9


6.1. Funding......................................................................................... 9


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ARTICLE VII. MERGER, AMENDMENT, AND TERMINATION............................................................. 10


7.1. Merger, Consolidation, or Acquisition.......................................................... 10
7.2. Amendment and Termination...................................................................... 10


ARTICLE VIII. ADOPTION PROCEDURE............................................................................. 10


8.1. Adoption Procedure............................................................................. 10
8.2. Withdrawal of Participating Employer........................................................... 11


ARTICLE IX. GENERAL PROVISIONS............................................................................. 11


9.1. Nonalienation.................................................................................. 11
9.2. Effect on Other Benefit Plans.................................................................. 12
9.3. Severability................................................................................... 12
9.4. Applicable Law................................................................................. 12
9.5. Employer-Employee Relationship................................................................. 12
9.6. Incompetence................................................................................... 13
9.7. Binding on Employer, Eligible Participants and Their Successors................................ 13
9.8. Tax Liability.................................................................................. 13


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MITCHELL ENERGY & DEVELOPMENT CORP.
EXECUTIVE EXCESS BENEFIT PLAN
(Adopted Effective as of July 1, 1998)


Article I. Establishment and Purpose


1.1. Establishment of Plan. MITCHELL ENERGY & DEVELOPMENT CORP., a Texas corporation ("Company") hereby adopts an unfunded benefit plan described as the "Mitchell Energy & Development Corp. Executive Excess Benefit Plan" (the "Plan").


1.2. History and Purpose. The Company previously adopted and continues to maintain an unfunded benefit plan known as the "Mitchell Energy & Development Corp. Excess Benefit Plan" (the "Excess Plan"). The Excess Plan was established and is maintained solely for the purpose of providing certain employees who are eligible to receive benefit payments under the "Mitchell Energy & Development Corp. Retirement Plan," as amended and restated effective as of February 1, 1989 and as amended thereafter ("Retirement Plan"), such portion of such benefit payments as would have been payable to such employees under the Retirement Plan if the maximum annual benefit limitations under Code section 415 had not been applied to such benefit payments. In this regard, it is the intent that the Excess Plan meets the requirements and be classified as an "excess benefit plan" as described in section 3(36) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and as such that the Excess Plan be exempt from the requirements of Title I of ERISA. Effective July 1, 1998, the Company established and maintains the Mitchell Energy & Development Corp 1998 Mutual Fund Option Plan (the "Option Plan") for the purpose of allowing a select group of management or highly compensated employees to defer compensation and receive options to purchase shares of selected mutual funds in lieu thereof. The Plan is hereby established for the purpose of providing benefits similar to those provided under the Excess Plan to a select group of


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management or highly compensated employees within the meaning of section 201(2) of ERISA, who have deferred compensation under the Option Plan but including such deferred compensation in the calculation of benefits due such employees. It is intended that the Plan be exempt from the relevant requirements of Title I of ERISA . The Plan is not intended to satisfy the qualification requirements of Code section 401.


1.3. Application of the Plan. The terms of this Plan are applicable only to or with respect to those Participants who are eligible to receive a Pension benefit under the Retirement Plan on or after January 1, 1992, and who become Eligible Participants under this Plan on or after such date.


Article II. Definitions and Construction


2.1. Definitions. All terms used in this Plan shall have the same meanings assigned to them under the provisions of the Retirement Plan, unless otherwise qualified by the context hereof. Notwithstanding the prior sentence, the following terms shall have the meanings set forth below, unless their context clearly indicates to the contrary:


(a) "Compensation" means Compensation within the meaning set forth
in Section 2.1(l) of the Retirement Plan; provided, however,
that for purposes of calculating benefits due under this Plan,
such Compensation shall include any salary or bonus that is
deferred pursuant to the terms of the Mitchell Energy &
Development Corp. 1998 Mutual Fund Option Plan. Compensation
shall not include any bonus unit proceeds or performance unit
proceeds or any other amounts not included in the definition
of Compensation in the Retirement Plan which may be deferred


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pursuant to the terms of the Mitchell Energy & Development
Corp. 1998 Mutual Fund Option Plan or otherwise.


(b) "Eligible Participant" means an individual who satisfies the
conditions of Sections 3.1 and 3.2.


(c) "Employer" means the Company and each other Employer who is a
participating Employer under the Retirement Plan and who has
elected to become a participating Employer under this Plan as
provided in Article VIII.


(d) "Excess Plan" means the Mitchell Energy & Development Corp.
Excess Benefit Plan.


(e) "Participant" means an individual who has qualified as a
"Participant" under the Retirement Plan and who maintains such
status at any relevant date.


(f) "Plan" means the "Mitchell Energy & Development Corp.
Executive Excess Benefit Plan" as set forth in this document
and as the same may be amended from time to time.


(g) "Option Plan" means the Mitchell Energy & Development Corp.
1998 Mutual Fund Option Plan.


(h) "Optionee" means an employee of the Company who has been
granted any right under Section V of the Option Plan to defer
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