Teton Energy Corporation
2005 Long Term Incentive Plan
Administration – 2006 Awards
The purpose of the Teton Energy Corporation (the “Company”) 2005 Long Term Incentive Plan (the
“Plan”), as set forth in the Plan, as amended from time to time, is to give the Company a competitive
advantage in attracting, retaining and motivating officers, employees, directors, and certain consultants and
advisors through a long term incentive plan providing stock and performance-based awards linked to
shareholder value. The expectation is that the Company will be able to provide incentives and rewards to
Board Members, Executive Management, Key Employees, and key consultants or operating partners, who
are expected to contribute to the financial results, revenue and profits, growth, and increase in value of the
Company, and to enhance the Company’s ability to attract and retain persons who will make such
contributions. By meeting these objectives, the Plan is intended to benefit the interests of the Company’s
This Plan Administration document is intended to implement the rules consistent with the Plan with respect to
the issuances of Performance Share Units, as defined below.
Unless the context clearly indicates to the contrary or otherwise is in conflict with applicable provisions of the
Plan, the following words and terms have the meanings set forth below:
(a) Asset Sale. A sale or other disposition of all or substantially all of the assets of the Company or
a Primary Operating Subsidiary.
(b) Award. A grant to a Participant of a specified number of Performance Share Units.
(c) Award Date. The first day of the month in which the Award is made.
(d) Board. The Board of Directors of the Company.