CHAPARRAL
Chaparral Resources, Inc.
February 4, 1998
Michael B. Young
804 West Main
Houston, Texas 77006
Dear Michael:
Chaparral Resources, Inc. is pleased to extend you an offer for the Financial
Controller & Treasurer position based on the following terms:
Start Date: February 4, 1998
Base Salary: $80,000 per year
Salary Review: Yearly review
Performance Review: Six-month review.
Share Options: 50,000 shares at $2.25 exercisable immediately
upon acceptance of offer. Options to be registered
with the SEC.
Share Grants: 40,000 shares vesting over four years in four
issues. First issue of 10,000 shares vesting on
January 30, 1998; second issue of 10,000 shares on
January 30, 1999; third issue of 10,000 shares on
January 30, 2000, fourth issue of 10,000 shares on
January 30, 2001. Share Grants will immediately
vest should Chaparral Resources, Inc. be bought or
merge with another company or termination without
cause.
Bonus Program: Eligible for bonus opportunity with project
development participation.
401(k) Program: Immediate participation upon program initiation.
Vacation Time: 15 days per year.
Health/Dental Insurance: Immediate Full Coverage.
Life Insurance: $50,000 individual coverage.
Additional benefits will be addressed in the near future. The 401(k) program and
a corporate stock plan are currently being evaluated and will be offered in
addition to your compensation plan.
If you feel this offer of employment meets your requirements, please sign below
and return to my attention. If you have any questions, you can reach Charles
Karren or myself at (713) 669-0932.
Sincerely, Accepted by
/s/ Amanda Johnson 2/4/98 /s/ Michael B. Young 2/4/98
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Amanda B. Johnson/Date Michael B. Young/Date
3400 Bissonnet o Suite 135 o Houston Texas 77005 o 713-669-0932 o
713-669-0994 Fax