<PAGE> 1
As filed with the Securities and Exchange Commission on July 27, 1995
Registration No. 33-
___________________________________________________________________________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________
FORM S-8
REGISTRATION STATEMENT
Under
THE SECURITIES ACT OF 1933
_______________________
BERRY PETROLEUM COMPANY
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction of incorporation or organization)
77-0079387
(I.R.S. Employer Identification No.)
28700 Hovey Hills Road
P.O. Bin X
Taft, California 93268
(805) 769-8811
(Address, including zip code, and telephone number,
including area code, of registrant's principal executive offices)
Berry Petroleum Company 1994 Stock Option Plan
(Full Title of the Plan)
____________________
JERRY V. HOFFMAN
President and Chief Executive Officer
28700 Hovey Hills Road
P.O. Bin X
Taft, California 93268
(805) 769-8811
(Address, including zip code, and telephone number,
including area code, of agent for service)
____________________
Copies to:
Laura K. McAvoy, Esq.
Nordman, Cormany, Hair & Compton
1000 Town Center Drive, Sixth Floor
P.O. Box 9100
Oxnard, California 93031-9100
______________________________
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<TABLE>
<CAPTION>
CALCULATION OF REGISTRATION FEE
Proposed Proposed
Title of Maximum Maximum
Securities Amount Offering Aggregate Amount of
to be to be Price Per Offering Registration
Registered Registered Share Price Fee
<S> <C> <S> <C> <C>
Class A Common Stock 1,000,000 See Notes $9,957,938(2)(3) $3,436
</TABLE>
(1) This Registration Statement also covers such additional number of shares,
presently indeterminable, as may become issuable in the event of stock
dividends, stock splits, recapitalizations or other changes in the
Class A Common Stock.
(2) Pursuant to Rule 457(h), the maximum offering price per share for options
for 333,000 shares already granted is $10.75 and for options for the
667,000 shares remaining available is a recent average of the high and
low prices for the Class A Common Stock as reported by the New York Stock
Exchange of $9.5625 per share.
(3) Calculated pursuant to Rule 457(c).
<PAGE> 3
PART II
Item 3. Incorporation of Documents by Reference.
The following documents are incorporated herein by reference:
(a) The Registrant's Annual Report on Form 10-K, for the fiscal year
ended December 31, 1994, as filed with the Securities and Exchange
Commission on or about March 28, 1995;
(b) The information under the caption "Item 1. DESCRIPTION OF
REGISTRANT'S SECURITIES TO BE REGISTERED" on Pages 2 and 3 of the
Registrant's Registration Statement on Form 8-A which was declared
effective by the Securities and Exchange Commission on or about
October 20, 1987.
All documents subsequently filed by the Registrant pursuant to Sections 13(a),
13(c), 14 and 15(d) of the Securities Exchange Act of 1934 prior to the
filing of a post-effective amendment which indicates that all securities
offered have been sold or which deregisters all securities then remaining
unsold, shall be deemed to be incorporated by reference in this Registration
Statement and to be part hereof from the date of filing of such documents.
Item 4. Description of Securities.
The Class A Common Stock ($.01 par value) is registered under Section 12 of
the Securities Exchange Act of 1934.
Item 5. Interests of Named Experts and Counsel.
None.
Item 6. Indemnification of Directors and Officers.
The General Corporation Law of the State of Delaware (the "Delaware GCL")
provides that a director or officer of a corporation (i) shall be indemnified
by the corporation for all expenses of litigation or other legal proceedings
when he is successful in the merits, (ii) may be indemnified by the
corporation for the expenses, judgments, fines and amounts paid in settlement
of such litigation (other than a derivative suit) even if he is not
successful on the merits if he acted in good faith and in a manner he
reasonably believed to be in or not opposed to the best interests of the
corporation (and, in the case of a criminal proceeding, had no reason to
believe his conduct was unlawful), and (iii) may be indemnified by the
corporation for expenses of a derivative suit (a suit by a shareholder
alleging a breach by a director or officer of a duty owed to the corporation),
even if he is not successful on the merits, if he acted in good faith and in
a manner he reasonably believed to be in or not opposed to the best interests of
the corporation, provided that no such indemnification may be made in accordance
with this clause (iii) if the director or officer is adjudged liable to the
corporation, unless a court determines that, despite such adjudication but in
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view of all of the circumstances, he is entitled to indemnification of such
expenses. The indemnification described in clauses (ii) and (iii) above shall
be made only upon a determination by (i) a majority of a quorum of disinterested
directors, (ii) independent legal counsel or (iii) the shareholders, that
indemnification is proper because the applicable standard of conduct is met.
Expenses incurred by a director or officer in defending an action may be
advanced by the corporation prior to the final disposition of such action upon
receipt of an undertaking by such director or officer to repay such expenses if
it is ultimately determined that he is not entitled to be indemnified in
connection with the proceeding to which the expenses relate.
As permitted by the Delaware GCL, the Registrant's Certificate of
Incorporation includes a provision eliminating, to the fullest extent
permitted, director liability for monetary damages for breaches of fiduciary
duty.
The Bylaws of the Registrant provide, in effect, that, to the extent and
under the circumstances permitted by Section 145 of the Delaware GCL, the
Registrant may indemnify any person who was or is a party or is threatened to
be made a party to any action, suit or proceeding of the type described above
by reason of the fact that he or she is or was a director, officer, employee or
agent of the Registrant or is or was serving at the request of the Registrant as
a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprise, including without limitation service
with respect to employee benefit plans.
The Registrant has entered into, and may from time to time enter into, a
form of indemnity agreement (the "Indemnity Agreement") with each director or
officer designated by the Board of Directors, depending on the then current
status of directors' and officers' insurance coverage. The Indemnity Agreement
requires that the Registrant indemnify directors and officers who are parties
thereto in all cases to the fullest extent permitted by applicable law. Under
the Delaware GCL, except in the case of litigation in which a director or
officer is successful on the merits, indemnification of a director or officer
is discretionary rather than mandatory. The Indemnity Agreement requires the
Registrant to make prompt payment of litigation expenses at the request
of the director or officer in advance of indemnification provided that he
undertakes to repay the amounts if it is ultimately determined that he is not
entitled to indemnification for such expenses and provided further that such
advance shall not be made if it is determined that the director or officer acted
in bad faith or deliberately breached his duty to the Registrant and its
shareholders and, as a result, it is more likely than not that he will not be
entitled to indemnification under the terms of the Indemnity Agreement. The
advance of litigation expenses is mandatory absent a special determination to
the contrary; under the Delaware GCL and the Registrant's Bylaws, such advance
would be discretionary. Under the Indemnity Agreement, the director or officer
is permitted to petition the court to seek recovery of amounts due under the
Indemnity Agreement and to recover the expenses of seeking such recovery if he
is successful. Without the Indemnity Agreement, the Registrant would not be
required to pay or reimburse the director or officer for his expenses in seeking
indemnification recovery against the Registrant. By the terms of the Indemnity
Agreement, its benefits are not available if the director or officer has other
indemnification or insurance coverage for the subject claim or, with respect to
the matters giving rise to the claim, (i) received a personal benefit,
<PAGE> 5
(ii) violated Section 16(b) of the Securities Exchange Act of 1934 or analogous
provisions of law, or (iii) committed certain acts of dishonesty. Absent the
Indemnity Agreement, indemnification that might be made available to directors
and officers could be changed by amendments to the Registrant's Certificate of
Incorporation or Bylaws.
Item 7. Exemption from Registration Claimed.
Not applicable.
Item 8. Exhibits.
4.1 Berry Petroleum Company 1994 Stock Option Plan.
4.2 Form of Stock Option Agreement.
5.1 Opinion of Nordman, Cormany, Hair & Compton regarding validity of
securities.
23.1 Consent of Nordman, Cormany, Hair & Compton (included in Exhibit 5.1).
23.2 Consent of Coopers & Lybrand L.L.P.
Item 9. Undertakings.
(a) The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a
post-effective amendment to this Registration Statement to include any material
information with respect to the plan of distribution not previously disclosed in
the Registration Statement or any material change to such information in the
Registration Statement.
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be deemed to
be a new Registration Statement relating to the securities offered therein,
and the offering of such securities at that time shall be deemed to be the
initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any
of the securities being registered which remain unsold at the termination of the
offering.
(b) The undersigned Registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the
Registrant's annual report pursuant to Section 13(a) or 15(d) of the Securities
Exchange Act of 1934 that is incorporated by reference in the Registration
Statement shall be deemed to be a new Registration Statement relating to the
securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.
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(c) Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the foregoing provisions, or otherwise,
the Registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a director, officer or controlling
person of the Registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the Registrant will, unless in
the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will
be governed by the final adjudication of such issue.
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SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant
certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Taft, State of California, on this 24th day of
July, 1995.
BERRY PETROLEUM COMPANY
By: /s/ Jerry V. Hoffman
Jerry V. Hoffman
(Principal Executive Officer)
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the date indicated.
SIGNATURES TITLE DATE
/s/ Harvey L. Bryant Chairman of the Board and July 1, 1995
Harvey L. Bryant Director
/s/ Jerry V. Hoffman President, Chief July 24, 1995
Jerry V. Hoffman Executive Officer and Director
/s/ Benton Bejach Director July 1, 1995
Benton Bejach
/s/ William F. Berry Director July 17, 1995
William F. Berry
/s/ Gerry A. Biller Director July 1, 1995
Gerry A. Biller
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/s/ Ralph B. Busch, Jr. Director July 17, 1995
Ralph B. Busch, Jr.
/s/ William E. Bush, Jr. Director July 4, 1995
William E. Bush, Jr.
/s/ William B. Charles Director July 17, 1995
William B. Charles
/s/ Richard F. Downs Director July 17, 1995
Richard F. Downs
/s/ John A. Hagg Director July 17, 1995
John A. Hagg
/s/ Thomas J. Jamieson Director July 17, 1995
Thomas J. Jamieson
/s/ Roger G. Martin Director July 1, 1995
Roger G. Martin
<PAGE> 9
EXHIBIT INDEX
Exhibit No. Description Sequentially
Numbered Pages
4.1 Berry Petroleum Company 1994 Stock
Option Plan. 10
4.2 Form of Stock Option Agreement. 28
5.1 Opinion of Nordman, Cormany,
Hair & Compton regarding validity
of securities. 34
23.1 Consent of Nordman, Cormany, Hair & Compton
(included in Exhibit 5.1). 34
23.2 Consent of Coopers & Lybrand L.L.P. 35
<PAGE> 10
BERRY PETROLEUM COMPANY
1994 STOCK OPTION PLAN
ARTICLE I
PURPOSE OF PLAN
The purpose of this Plan is to promote the growth and
profitability of the Company and other Participating Companies by
providing, through the ownership of Options, incentives to
attract and retain highly talented persons to provide managerial,
administrative and other specialized services to the Company and
other Participating Companies and to motivate such persons to use
their best efforts on behalf of the Company and other
Participating Companies.
ARTICLE II
DEFINITIONS
For purposes of this Plan, the following terms shall have
the meanings set forth in this Article II:
2.1 Accrued Installment. The term "Accrued Installment"
shall mean any vested installment of an Option.
2.2 Board. The term "Board" shall mean the Board of
Directors of the Company.
2.3 Committee. The term "Committee" shall mean the
Compensation Committee, or a successor committee, appointed by
the Board and constituting not less than two members of the
Board, each of whom is a Disinterested Person.
1
2.4 Company. The term "Company" shall mean Berry Petroleum
Company, a Delaware corporation, or any successor thereof.
2.5 Director. The term "Director" shall mean a member of
the Board, or a member of the board of directors of any
Participating Company.
2.6 Disinterested Person. The term "Disinterested Person"
shall mean any person defined as a Disinterested Person in Rule
16b-3 of the Securities and Exchange Commission as amended from
time to time and as promulgated under the Exchange Act.
2.7 Effective Date. The term "Effective Date" shall mean
December 2, 1994.
2.8 Eligible Person. The term "Eligible Person" shall
mean, except as provided in Section 3.1, any full-time or part-
time employee, officer or Director of any Participating Company.
2.9 Exchange Act. The term "Exchange Act" shall mean the
Securities Exchange Act of 1934, as amended.
2.10 Fair Market Value. The term "Fair Market Value" shall
mean the closing sale price on the trading day in question of the
Shares on the Composite Tape for New York Stock Exchange Listed
Stocks, or, if the Shares are not quoted on the Composite Tape,
on the New York Stock Exchange, or, if the Shares are not listed
on such Exchange, on the principal United States securities
exchange on which the Shares are listed, or, if the Shares are
not listed on any such exchange, the closing bid quotation with
respect to the Shares on the trading day in question on the
National Association of Securities Dealers, Inc. Automated
Quotations Systems or any similar system then in use, or if no
2
such quotation is available, the fair market value on the date in
question of the Shares as determined in good faith by the
Committee. If the day in question is not a trading day, the
determination of Fair Market Value shall be made as of the
nearest preceding trading day.
2.11 Option. The term "Option" shall mean a nonstatutory
option to acquire Shares granted under this Plan.
2.12 Optionee. The term "Optionee" shall mean an Eligible
Person who has been granted an Option.
2.13 Parent Corporation. The term "Parent Corporation"
shall mean a corporation as defined in Internal Revenue Code
Section 424(e) or any successor thereto.
2.14 Participating Company. The term "Participating
Company" shall mean the Company and any Parent Corporation or
Subsidiary Corporation of the Company.
2.15 Plan. The term "Plan" shall refer to the Company's
1994 Stock Option Plan.
2.16 Shares. The term "Shares" shall mean shares of the
Company's Class A Common Stock, $.01 par value, and may be
unissued shares or treasury shares or shares purchased for
purposes of this Plan.
2.17 Subsidiary Corporation. The term "Subsidiary
Corporation" shall mean a corporation as defined in Internal
Revenue Code Section 424(f) or any successor thereto.
2.18 Terminating Transaction. The term "Terminating
Transaction" shall mean any of the following events: (a) the
3
dissolution or liquidation of the Company; (b) a reorganization,
merger or consolidation of the Company with one or more other
corporations as a result of which the Company goes out of
existence or becomes a subsidiary of another corporation (which
shall be deemed to have occurred if another corporation shall
own, directly or indirectly, over eighty percent (80%) of the
aggregate voting power of all outstanding equity securities of
the Company); (c) a sale of all or substantially all of the
Company's assets; or (d) a sale of the equity securities of the
Company representing more than eighty percent (80%) of the
aggregate voting power of all outstanding equity securities of
the Company to any person or entity, or any group of persons and
entities acting in concert.
2.19 Termination Date. The term "Termination Date" shall
mean December 2, 2004.
2.20 Total Disability. The term "Total Disability" shall
mean a permanent and total disability as that term is defined in
Internal Revenue Code Section 22(e)(3) or any successor thereto.
ARTICLE III
ADMINISTRATION OF PLAN; GRANT TO DIRECTORS
3.1 Administration by the Committee. This Plan shall be
administered by the Compensation Committee of the Board, or its
successor (the "Committee"). Subject to the provisions of this
Plan document, the Committee shall have full and absolute power
and authority in its sole discretion to (i) determine which
Eligible Persons shall receive Options, (ii) determine the time
when Options shall be granted, (iii) determine the terms and
4
conditions, not inconsistent with the provisions of this Plan, of
any Option granted hereunder, (iv) determine the number of shares
subject to or covered by each Option, and (v) interpret the
provisions of this Plan and of any Option granted under this
Plan. A member of the Committee shall not be an Eligible Person,
and shall not have been an Eligible Person at any time within one
(1) year prior to appointment to the Committee. Except as
otherwise provided herein or otherwise permitted by Rule 16b-
3(c)(3) of the Exchange Act, during said one (1) year prior to
such appointment, no member of the Committee shall have been
eligible to acquire stock, stock options or stock appreciation
rights under any plan of the Company.
3.2 Grant to Non-employee Directors. All non-employee
Directors of the Company holding office on December 2, 1994,
shall receive a grant of 3,000 Options, conditioned upon the
receipt of Shareholder Approval at the 1995 Annual Meeting of
Shareholders. For the duration of the 1994 Plan, each non-
employee Director holding office on December 2nd of each year
shall automatically receive a grant of 3,000 Options. The above
referenced Options to non-employee Directors shall be granted
upon the following terms and conditions:
(a) The exercise price of the Options shall be Fair
Market Value on the date of grant.
(b) The Options shall vest immediately upon grant.
(c) This "formula" grant to non-employee Directors
shall not be amended more than once every (6) six months, other
than to comport with changes in the Internal Revenue Code, the
5
Employee Retirement Income Security Act or the rules thereunder.
3.3 Rules and Regulations. The Committee may adopt such
rules and regulations as the Committee may deem necessary or
appropriate to carry out the purposes of this Plan and shall have
authority to take all action necessary or appropriate to
administer this Plan.
3.4 Binding Authority. All decisions, determinations,
interpretations, or other actions by the Committee shall be
final, conclusive, and binding on all Eligible Persons,
Optionees, Participating Companies and any successors-in-interest
to such parties.
ARTICLE IV
NUMBER OF SHARES AVAILABLE UNDER THIS PLAN
The maximum aggregate number of Shares which may be optioned
and sold under this Plan is 1,000,000 Shares. In the event that
Options granted under this Plan shall for any reason terminate,
lapse, be forfeited, or expire without being exercised, the
Shares subject to such unexercised Options may again be subjected
to Options under this Plan. In any event, however, no Option may
be granted hereunder if the sum of Shares subject to such Option
and the number of Shares subject to unexpired Options previously
granted hereunder (or subject to unexercised options or stock
appreciation rights under any other stock option or stock
appreciation right plan of the Company) would exceed twenty
percent (20%) of the total shares of voting stock outstanding at
such time.
6
ARTICLE V
TERM OF PLAN
This Plan shall be effective as of the Effective Date and
shall terminate on the Termination Date. No Option may be
granted hereunder after the Termination Date.
ARTICLE VI
OPTION TERMS
6.1 Form of Option Agreement. Any option granted under
this Plan shall be evidenced by an agreement ("Option Agreement")
in such form as the Committee, in its discretion, may from time
to time approve. Any Option Agreement shall contain such terms
and conditions as the Committee may deem, in its sole discretion,
necessary or appropriate and which are not inconsistent with the
provisions of this Plan.
6.2 Vesting and Exercisability of Options. Subject to the
limitations set forth herein and/or in any applicable Option
Agreement entered into hereunder, Options granted under this Plan
shall vest and be exercisable in accordance with the rules set
forth in this Section 6.2:
a. General. Subject to the other provisions of this
Section 6.2, Options shall vest and become exercisable at such
times and in such installments as the Committee shall provide in
each individual Option Agreement. Notwithstanding the foregoing,
the Committee may in its sole discretion accelerate the time at
which an Option or installment thereof may be exercised. Unless
otherwise provided in this Section 6.2 or in the Option Agreement
7
pursuant to which an Option is granted, an Option may be
exercised when Accrued Installments accrue as provided in such
Option Agreement and at any time thereafter until, and including,
the Option Termination Date (as defined below).
b. Termination of Options. All installments and
Options shall expire and terminate on such date as the Committee
shall determine ("Option Termination Date"), which in no event
shall be later than ten (10) years from the date on which such
Option was granted.
c. Termination of Eligible Person Status Other Than by
Reason of Death or Disability. In the event that the employment
of an Eligible Person with a Participating Company is terminated
for any reason (other than by reason of death or Total
Disability), any installments under an Option held by such
Eligible Person which have not accrued as of such termination
date shall expire and become unexercisable as of such termination
date. Except as otherwise provided herein, in the event that an
Eligible Person who is a Director terminates his directorship or
otherwise ceases to be a Director for any reason (other than by
reason of death or Total Disability), any installments under an
Option held by such Eligible Person which have not accrued as of
the directorship termination date shall expire and become
unexercisable as of the directorship termination date. All
Accrued Installments as of the employment termination date and/or
the directorship termination date shall remain exercisable only
within such period of time as the Committee may determine, but in
no event shall any Accrued Installments remain exercisable for a
8
period in excess of three (3) months following such termination
date or for a period in excess of the original Option Termination
Date, whichever is earlier. For purposes of this Plan, an
Eligible Person who is an employee or Director of any
Participating Company shall not be deemed to have incurred a
termination of his employment or his directorship (whichever may
be applicable) so long as such Eligible Person is an employee or
Director (whichever may be applicable) of any Participating
Company.
d. Leave of Absence. In the case of any employee on
an approved leave of absence, the Committee may make such
provision respecting continuance of any Options held by the
employee as the Committee deems appropriate in its sole
discretion, except in no event shall an Option be exercisable
after the original Option Termination Date.
e. Death or Total Disability of Eligible Person. In
the event that the employment or directorship of an Eligible
Person with a Participating Company is terminated by reason of
death or Total Disability, any unexercised Accrued Installments
of Options granted hereunder to such Eligible Person shall expire
and become unexercisable as of the earlier of:
(1) The applicable Option Termination Date, or
(2) The first anniversary of the date of
termination of the employment or directorship of such Eligible
Person by reason of the Eligible Person's death or Total
Disability. Any such Accrued Installments of a deceased Eligible
Person may be exercised prior to their expiration only by the
9
person or persons to whom the Eligible Person's Option rights
pass by will or the laws of descent and distribution. Any Option
installments under such a deceased or disabled Eligible Person's
Option that have not accrued as of the date of the termination of
employment, or directorship due to death or Total Disability
shall expire and become unexercisable as of such termination
date.
f. Termination of Affiliation of Participating Company.
Notwithstanding the foregoing provisions of this section, in the
case of an Eligible Person who is an employee or Director of a
Participating Company other than the Company, upon an Affiliation
Termination (as defined herein) of such Participating Company
such Eligible Person shall be deemed (for all purposes of this
Plan) to have incurred a termination of his employment or
directorship with such Participating Company for reasons other
than death or Total Disability, with such termination to be
deemed effective as of the effective date of said Affiliation
Termination. As used herein the term "Affiliation Termination"
shall mean, with respect to a Participating Company, the
termination of such Participating Company's status as a
Participating Company (as defined herein) with respect to the
Company.
6.3 Options Not Transferable. Options granted under this
Plan may not be sold, pledged, hypothecated, assigned,
encumbered, gifted or otherwise transferred or alienated in any
manner, either voluntarily or involuntarily or by operation of
law, other than by will or the laws of descent and distribution,
10
and (except as specifically provided to the contrary in Section
6.2(e) hereof) may be exercised during the lifetime of an
Optionee only by such Optionee.
6.4 Restrictions on Issuance of Shares.
a. No Shares shall be issued or delivered upon
exercise of an Option unless and until there shall have been
compliance with all applicable requirements of the Securities Act
of 1933, all applicable listing requirements of any market or
securities exchange on which the Company's Common Stock is then
listed, and any other requirements of law or of any regulatory
body having jurisdiction over such issuance and delivery. The
inability of the Company to obtain any required permits,
authorizations or approvals necessary for the lawful issuance and
sale of any Shares hereunder on terms deemed reasonable by the
Committee shall relieve the Company, the Board, and the Committee
of any liability in respect of the nonissuance or sale of such
Shares as to which such requisite permits, authorizations or
approvals shall not have been obtained.
b. As a condition to the granting or exercise of any
Option, the Committee may require the person receiving or
exercising such Option to make any representations and warranties
to the Company as may be required or appropriate under any
applicable law or regulation, including, but not limited to, a
representation that the Option or Shares are being acquired only
for investment and without any present intention to sell or
distribute such Option or Shares, if such a representation is
11
required under the Securities Act of 1933 or any other applicable
law, rule or regulation.
c. The exercise of any Option under this Plan is
conditioned on approval of this Plan, within twelve (12) months
of the adoption of this Plan by the Board, by (i) the vote of the
holders of a majority of the outstanding securities of the
Company present, or represented, and entitled to vote at a
meeting duly held in accordance with applicable law, or (ii) the
written consent of the holders of a majority of the securities of
the Company entitled to vote if the requirements of Rule 16b-
3(b)(2) promulgated under the Exchange Act are otherwise
satisfied. In the event such shareholder approval is not
obtained within such time period, any Options granted hereunder
shall be void.
6.5 Option Adjustments.
a. If the outstanding Shares are increased, decreased,
changed into or exchanged for a different number or kind of
shares of the Company through reorganization, recapitalization,
reclassification, stock dividend, stock split or reverse stock
split, an appropriate and proportionate adjustment shall be made
in the number or kind of shares, and the per-share Option price
thereof, which may be issued in the aggregate and to any
individual Optionee under this Plan upon exercise of Options
granted under this Plan; provided, however, that no such
adjustment need be made if, upon the advice of counsel, the
Committee determines that such adjustment may result in the
receipt of federally taxable income to holders of Options granted
12
hereunder or the holders of Shares or other classes of the
Company's securities.
b. Upon the occurrence of a Terminating Transaction
(as defined in Article II hereof), as of the effective date of
such Terminating Transaction, this Plan and any then outstanding
Options (whether or not vested) shall terminate unless (i)
provision is made in writing in connection with such transaction
for the continuance of this Plan and for the assumption of such
Options, or for the substitution of such Options of new options
covering the securities of the successor or surviving corporation
in the Terminating Transaction or an affiliate thereof, with
appropriate adjustments as to the number and kind of securities
and prices, in which event this Plan and such outstanding Options
shall continue or be replaced, as the case may be, in the manner
and under the terms so provided; or (ii) the Committee otherwise
shall provide in writing for such adjustments as it deems
appropriate in the terms and conditions of the then outstanding
Options (whether or not vested), including without limitation (A)
accelerating the vesting of outstanding Options, and/or (B)
providing for the cancellation of Options and their automatic
conversion into the right to receive the securities or other
properties which a holder of the Shares underlying such Options
would have been entitled to receive upon consummation of such
Terminating Transaction had such Shares been issued and
outstanding (net of the appropriate option exercise prices). If
this Plan or the Options shall terminate pursuant to the
foregoing provisions of this paragraph (b) because neither (i)
13
nor (ii) is satisfied, any Optionee holding outstanding Options
shall have the right, at such time immediately prior to the
consummation of the Terminating Transaction as the Company shall
designate, to exercise his or her Options to the full extent not
theretofore exercised, including any installments which have not
yet become Accrued Installments.
c. In all cases, the nature and extent of adjustments
under this Section 6.5 shall be determined by the Committee in
its sole discretion, and any such determination as to what
adjustments shall be made, and the extent thereof, shall be
final, binding and conclusive. No fractional shares of stock
shall be issued under this Plan pursuant to any such adjustment.
6.6 Taxes. The Committee shall make such provisions and
take such steps as it deems necessary or appropriate for the
withholding of any federal, state, local and other tax required
by law to be withheld with respect to the grant or exercise of an
Option under this Plan, including, but without limitation, the
withholding of the number of Shares at the time of the grant or
exercise of an Option the Fair Market Value of which would
satisfy any withholding tax on said exercise or grant, the
deduction of the amount of any such withholding tax from any
compensation or other amounts payable to an Optionee by any
member of the Participating Companies, or requiring an Optionee
(or the Optionee's beneficiary or legal representative) as a
condition of granting or exercising an Option to pay to any
member of the Participating Companies any amount required to be
withheld, or to execute such other documents as the Committee
14
deems necessary or appropriate in connection with the
satisfaction of any applicable withholding obligation.
6.7 Legends. Each Option Agreement and each certificate
representing Shares acquired upon exercise of an Option shall be
endorsed with all legends, if any, required by applicable federal
and state securities laws to be placed thereon. The
determination of which legends, if any, shall be placed upon
Option Agreements and/or said Share certificates shall be made by
the Committee in its sole discretion and such decision shall be
final, binding and conclusive.
ARTICLE VII
SPECIAL OPTION TERMS UNDER THIS PLAN
7.1 Option Exercise Price. The Option exercise price for
Shares to be issued under this Plan shall be determined by the
Committee in its sole discretion, but shall not be less than
eighty percent (80%) of the Fair Market Value of the Shares on
the date of grant. The date of grant shall be deemed to be the
date on which the Committee authorizes the grant of the Option,
unless a subsequent date is specified in such authorization.
7.2 Exercise of Options. An Option may be exercised in
accordance with this Section 7.2 as to all or any portion of the
Shares covered by an Accrued Installment of the Option from time
to time during the applicable Option period, except that an
Option shall not be exercisable with respect to fractions of a
Share. Options may be exercised, in whole or in part, by giving
written notice of exercise to the Company, which notice shall
specify the number of Shares to be purchased and shall be
15
accompanied by payment in full of the purchase price in
accordance with Section 7.3. An Option shall be deemed exercised
when such written notice of exercise and payment has been
received by the Company. No Shares shall be issued until full
payment has been made and the Optionee has satisfied such other
conditions as may be required by this Plan, as may be required by
applicable law, rules, or regulations, or as may be adopted or
imposed by the Committee. Until the issuance of stock
certificates, no right to vote or receive dividends or any other
rights as a stockholder shall exist with respect to optioned
Shares notwithstanding the exercise of the Option. No adjustment
will be made for a dividend or other rights for which the record
date is prior to the date the stock certificate is issued, except
as provided in Section 6.5.
7.3 Payment of Option Exercise Price.
a. Except as otherwise provided in Section 7.3(b), the
entire Option exercise price shall be paid in cash at the time
the Option is exercised.
b. In the discretion of the Committee, an Optionee may
elect to pay for all or some of the Optionee's Shares with Common
Stock of the Company previously acquired and owned at the time of
exercise by the Optionee, subject to all restrictions and
limitations of applicable laws, rules and regulations, and
subject to the satisfaction of any conditions the Committee may
impose, including, but not limited to, the making of such
representations and warranties and the providing of such other
assurances that the Committee may require with respect to the
16
Optionee's title to the Company's Common Stock used for payment
of the exercise price. Such payment shall be made by delivery of
certificates representing the Company's Common Stock, duly
endorsed or with duly signed stock power attached, such Common
Stock to be valued at its Fair Market Value on the date notice of
exercise is received by the Company.
ARTICLE VIII
AMENDMENT OR TERMINATION OF PLAN
8.1 Board Authority. The Board may amend, alter, and/or
terminate this Plan at any time; provided, however, that unless
required by applicable law, rule, or regulation or unless no
longer required to satisfy the requirements of Rule 16b-3
promulgated under the Exchange Act, the Board shall not amend
this Plan without the approval of stockholders (as obtained in
accordance with the provisions of Section 6.4(c) hereof) if the
amendment would (A) materially increase the benefits accruing to
participants under this Plan, (B) materially increase the number
of securities which may be issued under this Plan, or (C)
materially modify the requirements as to eligibility for
participation in this Plan. In determining whether a given
amendment is within the scope of (A), (B) or (C), the Company may
rely, without limitation, upon the regulations promulgated and
the advice provided by the Securities and Exchange Commission
with respect to Rule 16b-3. No amendment of this Plan or of any
Option Agreement shall affect in a material and adverse manner
Options granted prior to the date of any such amendment without
the consent of any Optionee holding any such affected Options.
17
8.2 Contingent Grants Based on Amendments. Options may be
granted in reliance on and consistent with any amendment adopted
by the Board alone which is necessary to enable such Options to
be granted under this Plan, even though such amendment requires
future stockholder approval; provided, however, that any such
contingent Option by its terms may not be exercised prior to
stockholder approval of such amendment and provided, further,
that in the event stockholder approval is not obtained within
twelve (12) months of the date of grant of such contingent
Option, then such contingent Option shall be deemed canceled and
no longer outstanding.
ARTICLE IX
GENERAL PROVISIONS
9.1 Availability of Plan. A copy of this Plan shall be
delivered to the Secretary and Assistant Secretary of the Company
and shall be shown by the Secretary or Assistant Secretary to any
Eligible Person making reasonable inquiry concerning this Plan.
9.2 Notice. Any notice or other communication required or
permitted to be given pursuant to this Plan or under Option
Agreement must be in writing and shall be deemed to have been
given when delivered to and actually received by the party to
whom addressed. Notice shall be given to Optionees at their most
recent addresses shown in the Company's records. Notice to the
Company shall be addressed to the Company at the address of the
Company's principal executive offices, to the attention of the
Secretary of the Company.
9.3 Titles and Headings. Titles and headings of sections
of this Plan are for convenience of reference only and shall not
affect the construction of any provision of this Plan.
18
<PAGE> 28
BERRY PETROLEUM COMPANY
OPTION AGREEMENT
This Option Agreement ("Agreement") is made effective as of
____________, 199__ ("Grant Date"), by and between BERRY PETROLEUM
COMPANY, a Delaware corporation (the "Company"), and
_________________ ("Grantee").
STATEMENT OF BACKGROUND FACTS
The Board of Directors (the "Board") of the Company has
established the Berry Petroleum Company 1994 Stock Option Plan (the
"Plan").
Pursuant to the provision of the Plan, the Committee
designated by the Board in accordance with the Plan (the
"Committee"), by action taken on ______________, 199__, granted to
the Grantee an option ("Option") to purchase shares of the Class A
Common Stock of the Company ("Common Stock"), subject to the terms
and conditions set forth herein.
In consideration of the foregoing and of the mutual covenants
set forth herein and other good and valuable consideration, the
parties hereto agree as set forth below. Unless otherwise defined
herein, capitalized terms shall have the same meanings as defined
in the Plan.
1. The Option. The Grantee may, at the Grantee's option and
on the terms and conditions set forth herein, purchase all or any
part of an aggregate of _________ shares of Common Stock under the
Plan at the price per share set forth in Section 2 below.
2. Option Price and Exercise Dates.
a. The Option shall be exercisable at the option
price per share ("Option Price") as to the specified
number of shares ("Optioned Shares") on and after the
"Start" dates and on or before the "Termination" dates
set forth below:
Option Exercise Dates
Number of Shares Price Start Termination
____ $_____ _______ _______
____ $_____ _______ _______
____ $_____ _______ _______
____ $_____ _______ _______
____ $_____ _______ _______
b. The Option may be exercised when installments
accrue as indicated by the Start dates in Section 2a
above, but only during an Exercise Period (as defined
below) occurring on or after the applicable Start date
and on or before the applicable Termination date, with
respect to all or part of the Optioned Shares covered by
such accrued installments, subject, however, to the
further restrictions contained in this Agreement. In the
event that during any applicable Exercise Period the
Grantee shall exercise the Option for less than the full
number of Optioned Shares included within the accrued
installment, the Grantee shall, during any balance of
such Exercise Period or future Exercise Period (but on or
before the applicable Termination date), be entitled to
exercise the Option (in one or more subsequent
increments) for the balance of the Optioned Shares
included in said accrued installment. In no event shall
the Grantee be entitled to exercise the Option for
fractional shares of Common Stock or for a number of
shares exceeding the maximum number of Optioned Shares.
c. As used in this Agreement, the phrase "Exercise
Period" shall mean such period as the Board may establish
or consent to upon the advice of legal counsel.
d. The Option shall be exercised by giving to the
Company written notice thereof during any applicable
Exercise Period, and specifying in such notice the number
of Optioned Shares with respect to which such Option is
being exercised.
e. Grantee acknowledges that Grantee has no right
whatsoever to exercise the Option granted hereunder with
respect to any Optioned Shares covered by any installment
unless and until such installment accrues as provided
above. Grantee further understands that the Option
granted hereunder shall expire and become unexercisable
as provided in the Plan.
3. Delivery of Certificates. As soon as practicable after
any proper exercise of an Option in accordance with the provisions
of this Agreement and the Plan, the Company shall deliver to the
Grantee at the main office of the Company, or such other place as
shall be mutually acceptable, a certificate or certificates
representing the shares of Common Stock (if any) to which the
Grantee is entitled upon exercise of such Option.
4. No Rights in Shares Before Issuance and Delivery.
Neither the Grantee, his estate nor his transferees by will or the
laws of descent and distribution shall be, or have any rights or
privileges of, a shareholder of the Company with respect to any
shares issuable upon exercise of an Option unless and until
certificates representing such shares shall have been issued and
delivered. No adjustment will be made for a dividend or other
rights where the record date is prior to the date such certificates
are issued.
5. Nontransferability of Options. Any Options granted
hereunder are not transferable otherwise than by will or the laws
of descent and distribution. Options shall not be otherwise
transferred, assigned, pledged, hypothecated or disposed of in any
way, whether by operation of law or otherwise, and shall not be
subject to execution, attachment or similar process. Upon any
attempt to transfer an Option otherwise than by will or the laws of
descent and distribution, or to assign, pledge, hypothecate or
otherwise dispose of such Option, or upon the levy of any
execution, attachment or similar process thereon, such Option shall
become null and void and any subsequent attempted exercise of the
Option shall be ineffective against the Company.
6. Governing Plans. A copy of the document evidencing the
Plan has been delivered to the Grantee on or before the date of
execution of this Agreement and receipt of such copy is hereby
expressly acknowledged by Grantee. This Agreement hereby
incorporates by reference said Plan and all of the terms and
conditions of the Plan as the same may be amended from time to time
hereafter in accordance with the terms thereof. The terms of this
Agreement shall in no manner limit or modify the controlling
provisions of the Plan, and in the case of any conflict between the
provisions of the Plan and this Agreement, the provisions of the
Plan shall be controlling and binding upon the parties hereto.
7. Termination of Employment Due to Change in Control. Upon
the occurrence of a Terminating Transaction (as defined in the
Plan), as of the effective date of such Terminating Transaction,
the then outstanding unvested Options shall immediately become
fully vested and exercisable without regard to the vesting
provisions of Section 2a hereof. This acceleration, however, will
not occur if the Options are to be continued by a successor entity
or if appropriate substitutions are provided. Should a Terminating
Transaction occur, the options shall expire as of the earlier of:
(i) the Termination date set forth in Section 2a hereof, plus
ninety (90) days, or (ii) ninety (90) days after the date of the
Terminating Transaction.
8. Certain Representations and Warranties. Grantee
expressly acknowledges, represents and agrees:
a. That Grantee has read and understands the terms
and provisions of the Plan, and hereby accepts this
Agreement subject to all the terms and provisions of the
Plan;
b. That Grantee shall accept as binding,
conclusive and final all decisions or interpretations of
the Committee upon any questions arising under the Plan;
c. That if use of Common Stock of the Company to
pay the exercise price of the Option is authorized by the
Committee pursuant to the discretion granted to the
Committee under the Plan, Grantee has been advised to
consult with a competent tax advisor regarding the
applicable tax consequences prior to utilizing such
Common Stock to exercise an Option; and
d. That if Grantee is a person subject to the
provisions of Section 16 of the Securities Exchange Act
of 1934, Grantee has been advised to consult with a
competent federal securities law advisor as to the
reporting obligations and potential liability for profits
under said Section 16 with respect to the granting and
exercise of Options.
9. No Employment Rights or Obligations.
a. Nothing in the Plan or in this Agreement shall
be construed to create or imply any contract of
employment between the Company, or any direct or indirect
parent or subsidiary corporation of the Company (the
"Participating Companies"), and the Grantee. Nothing in
the Plan or in this Agreement shall confer upon the
Grantee any right to continue in the employ of any of the
Participating Companies or confer upon any Participating
Company any right to require continued employment by the
Grantee. Grantee acknowledges and agrees that the
employment of Grantee by such Participating Company is
expressly at the will of the Participating Company, and
the Participating Company may terminate Grantee's
employment by such Participating Company at any time for
any reason or for no reason. Similarly, Grantee may
terminate his or her employment with a Participating
Company at any time for any reason or for no reason.
b. Any question(s) as to whether and when there
has been a termination of Grantee's employment, the
reason (if any) for such termination, and/or the
consequences thereof under the terms of the Plan, shall
be determined by the Board in its sole discretion, and
the Board's determination thereof shall be final, binding
and conclusive.
10. Governing Law. This Agreement shall be governed by,
interpreted under, construed and enforced in accordance with the
internal laws, and not the laws pertaining to conflicts or choice
of laws, of the State of California applicable to agreements made
and to be performed wholly within the State of California.
11. Agreement Binding on Successors. The terms of this
Agreement shall be binding upon the executors, administrators,
heirs, successors, transferees and assignees of the Grantee.
12. Costs of Litigation. In any action at law or in equity
to enforce any of the provisions or rights under this Agreement or
the Plan, the unsuccessful party to such litigation, as determined
by the court in a final judgment or decree, shall pay the
successful party or parties all costs, expenses and reasonable
attorneys' fees and disbursements incurred by the successful party
or parties (including, without limitation, costs, expenses, fees
and disbursements on any appeals), and if the successful party
recovers judgment in any such action or proceeding such costs,
expenses and attorneys' fees and disbursements shall be included as
part of the judgment.
13. Necessary Acts. The Grantee agrees to perform all acts
and execute and deliver any documents that may be reasonably
necessary to carry out the provisions of this Agreement, including,
but not limited to, all acts and documents related to compliance
with federal and/or state securities and/or tax laws.
14. Counterparts. For convenience, this Agreement may be
executed in any number of identical counterparts, each of which
shall be deemed a complete original in itself and may be introduced
in evidence or used for any other purpose without the production of
any other counterparts.
15. Invalid Provisions. In the event that any provision of
this Agreement is found to be invalid or otherwise unenforceable
under any applicable law, such invalidity or unenforceability shall
not be construed as rendering any other provisions contained herein
invalid or unenforceable, and all such other provisions shall be
given full force and effect to the same extent as though the
invalid and unenforceable provision was not contained herein.
IN WITNESS WHEREOF, the Company and the Grantee have executed
this Agreement effective as of the date first written above.
BERRY PETROLEUM COMPANY GRANTEE
By: ________________________ ____________________________
Signature
Printed
Name: ______________________ ____________________________
Printed Name
Title: _____________________ ____________________________
Street Address
____________________________
City and State
____________________________
Social Security No.
By his or her signature below, the spouse of the Grantee, if
such Grantee is legally married as of the date of execution of this
Agreement, acknowledges that he or she has read this Agreement and
the Plan and is familiar with the terms and provisions thereof, and
agrees to be bound by all the terms and conditions of said
Agreement and said Plan.
____________________________
Spouse's Signature
____________________________
Printed Name
Dated: ____________________
By his or her signature below, the Grantee represents that he
or she is not legally married as of the date of execution of this
Agreement.
____________________________
Grantee's Signature
Dated: ____________________
<PAGE> 34
LAW OFFICES OF
NORDMAN, CORMANY, HAIR & COMPTON
1000 TOWN CENTER DRIVE
6TH FLOOR
POST OFFICE BOX 9100
OXNARD, CALIFORNIA 93031-9100
(805) 485-1000
(805) 656-3304
July 19, 1995
Berry Petroleum Company
28700 Hovey Hills Road
P.O. Bin X
Taft, CA 93268
Re: Registration Statement on Form S-8
Gentlemen:
We have acted as counsel for Berry Petroleum Company, a
Delaware corporation (the "Company"), in connection with the
various legal matters relating to the Registration Statement on
Form S-8 to be filed by the Company with the Securities and
Exchange Commission with respect to 1,000,000 shares of Class
A Common Stock, $.01 par value per share (the "Shares"), of the
Company which may be purchased pursuant to exercise of options
granted pursuant to the Company's 1994 Stock Option Plan.
We have examined such corporate records, certificates, and
such questions of law as we have considered necessary or
appropriate for the purposes of this opinion and on the basis
of such examination, advise you that in our opinion, subject to
compliance with applicable state securities laws, we are of the
opinion that the Shares have been duly authorized and upon
issuance and sale in conformity with and pursuant to the
Registration Statement, and receipt of the purchase price
therefor as specified in the Registration Statement, the Shares
will be legally and validly issued, fully paid and non-assessable.
We consent to the use of this opinion as an exhibit to the
Registration Statement and to the use of our name in the
Prospectus constituting any part thereof.
Very truly yours,
NORDMAN, CORMANY, HAIR & COMPTON
<PAGE> 35
EXHIBIT 23.2
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in this registration statement on
Form S-8 of our report dated February 22, 1995, on our audit of the financial
statements of Berry Petroleum Company.
COOPERS & LYBRAND L.L.P.
/s/ Coopers & Lybrand L.L.P.
Los Angeles, California
July 14, 1995
