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                                                                   EXHIBIT 10.14

                     DUKE ENERGY FIELD SERVICES CORPORATION

                          2000 LONG-TERM INCENTIVE PLAN

                             1. PURPOSE OF THE PLAN

         The purpose of the Duke Energy Field Services Corporation 2000
Long-Term Incentive Plan is to promote the interests of the Corporation and its
shareholders by strengthening the Corporation's ability to attract, motivate and
retain employees, consultants, advisors, and directors of the Corporation and
its Subsidiaries upon whose judgment, initiative and efforts the financial
success and growth of the business of the Corporation and its Subsidiaries
largely depend, and to provide an additional incentive for employees,
consultants, advisors, and directors through stock ownership and other rights
that promote and recognize the financial success and growth of the Corporation.

                                 2. DEFINITIONS

         Wherever the following capitalized terms are used in this Plan they
shall have the meanings specified below:

         (a) "AWARD" means an award of an Option, Restricted Stock, Stock
Appreciation Right, Performance Award, Phantom Stock or Dividend Equivalent
granted under the Plan.

         (b) "AWARD AGREEMENT" means an agreement entered into between the
Corporation and a Participant setting forth the terms and conditions of an Award
granted to a Participant.

         (c) "BOARD" means the Board of Directors of the Corporation.

         (d) "CHANGE IN CONTROL" shall have the meaning specified in Section 12
hereof.

         (e) "CODE" means the Internal Revenue Code of 1986, as amended.

         (f) "COMMITTEE" means the Compensation Committee of the Board, or such
other committee or subcommittee of the Board appointed by the Board to
administer the Plan from time to time.

         (g) "COMMON STOCK" means the common stock of the Corporation, par value
$.01 per share.

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         (h) "CONSULTANT" means any person who is not an Employee and who is
providing advisory or consulting services to the Corporation or any Subsidiary.

         (i) "CORPORATION" means Duke Energy Field Services Corporation, a
Delaware corporation.

         (j) "CORPORATION VOTING SECURITIES" means, at any given time, the then
outstanding voting securities of the Corporation entitled to vote generally in
the election of the Corporation's directors.

         (k) "DATE OF GRANT" means the date on which an Award under the Plan is
made by the Committee, or such later date as the Committee may specify that the
Award becomes effective.

         (l) "DIVIDEND EQUIVALENT" means an Award under Section 11 hereof
entitling the Participant to receive payments with respect to dividends declared
on the Common Stock.

         (m) "DUKE" means Duke Energy Corporation, a North Carolina corporation.

         (n) "EFFECTIVE DATE" means the Effective Date of this Plan, as defined
in Section 15.1 hereof.

         (o) "ELIGIBLE PERSON" means any person who is an Employee, a
Consultant, or an Independent Director.

         (p) "EMPLOYEE" means any person (including a member of the Board) who
is an employee of the Corporation or any Subsidiary; provided, however, that
with respect to Incentive Stock Options, "Employee" means any person who is
considered an employee of the Corporation or any Subsidiary for purposes of
Treasury Regulation Section 1.421-7(h).

         (q) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

         (r) "FAIR MARKET VALUE" of a share of Common Stock as of a given date
means the closing sales price of the Common Stock on the New York Stock Exchange
as reflected on the composite index on the trading day immediately preceding the
date as of which Fair Market Value is to be determined or, in the absence of any
reported sales of Common Stock on such date, on the first preceding date on
which any such sale shall have been reported. If Common Stock is not listed on
the New York Stock Exchange on the date as of which Fair Market Value is to be
determined, the Committee shall determine in good faith the Fair Market Value in
whatever manner it considers appropriate. Notwithstanding the foregoing, the
Fair Market Value of a share of Common Stock on the date of an initial public
offering of Common Stock shall be the offering price under such initial public
offering.

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         (s) "INDEPENDENT DIRECTOR" means a member of the Board who is not an
employee of the Corporation or any Subsidiary.

         (t) "INCENTIVE STOCK OPTION" means an option to purchase Common Stock
that is intended to qualify as an incentive stock option under section 422 of
the Code and the Treasury Regulations thereunder.

         (u) "NONQUALIFIED STOCK OPTION" means an option to purchase Common
Stock that is not an Incentive Stock Option.

         (v) "OPTION" means an Incentive Stock Option or a Nonqualified Stock
Option granted under Section 6 hereof.

         (w) "PARTICIPANT" means any Eligible Person who holds an outstanding
Award under the Plan.

         (x) "PERFORMANCE AWARD" means an Award made under Section 9 hereof
entitling a Participant to a payment based on the Fair Market Value of Common
Stock (a "Performance Share") or based on specified dollar units (a "Performance
Unit") at the end of a performance period if certain conditions established by
the Committee are satisfied.

         (y) "PHANTOM STOCK" means an Award under Section 10 hereof entitling a
Participant to a payment at the end of a vesting period of a unit value based on
the Fair Market Value of a share of Common Stock.

         (z) "PHILLIPS" means Phillips Petroleum Company, a Delaware
corporation.

         (aa) "PLAN" means the Duke Energy Field Services Corporation 2000
Long-Term Incentive Plan as set forth herein, as it may be amended from time to
time.

         (bb) "RESTRICTED STOCK" means an Award under Section 8 hereof entitling
a Participant to shares of Common Stock that are nontransferable and subject to
forfeiture until specific conditions established by the Committee are satisfied.

         (cc) "STOCK APPRECIATION RIGHT" or "SAR" means an Award under Section 7
hereof entitling a Participant to receive an amount, representing the difference
between the base price per share of the right and the Fair Market Value of a
share of Common Stock on the date of exercise.

         (dd) "SUBSIDIARY" means an entity that is wholly owned, directly or
indirectly, by the Corporation, or any other affiliate of the Corporation that
is so designated, from time to time, by the Committee; provided, however, that
with respect to Incentive Stock Options, the term "Subsidiary" shall not include
any entity that does not qualify within

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the meaning of section 424(f) of the Code as a "subsidiary corporation" with
respect to the Corporation.

                  3. SHARES OF COMMON STOCK SUBJECT TO THE PLAN

3.1. NUMBER OF SHARES. Subject to the following provisions of this Section 3,
the aggregate number of shares of Common Stock that may be issued pursuant to
all Awards under the Plan is 4,000,000 shares of Common Stock; provided,
however, that no more than 400,000 shares of Common Stock may be issued pursuant
to all Awards of Restricted Stock, Performance Awards or Phantom Stock under the
Plan. The shares of Common Stock to be delivered under the Plan will be made
available from authorized but unissued shares of Common Stock or Common Stock
previously issued and outstanding and reacquired by the Corporation. If any
share of Common Stock that is the subject of an Award is not issued and ceases
to be issuable for any reason, or is forfeited, cancelled or returned to the
Corporation for failure to satisfy vesting requirements or upon the occurrence
of other forfeiture events, such share of Common Stock will no longer be charged
against the foregoing maximum share limitations and may again be made subject to
Awards under the Plan pursuant to such limitations.

3.2. ADJUSTMENTS. If there shall occur any recapitalization, reorganization,
reclassification, merger, consolidation, combination, stock dividend, stock
split, reverse stock split, split-up, split-off, spin-off or other distribution
with respect to the shares of Common Stock, or any similar corporate transaction
or event in respect of the Common Stock, then the Committee shall, in the manner
and to the extent that it deems appropriate and consistent with the terms of
this Plan, cause a proportionate adjustment to be made in (a) the maximum
numbers and kind of shares provided in Section 3.1 hereof, (b) the number and
kind of shares of Common Stock, share units, or other rights or property
(including, without limitation, cash) subject to the then-outstanding Awards,
(c) the price for each share or unit or other right subject to then outstanding
Awards without change in the aggregate purchase price or value as to which such
Awards remain exercisable or subject to restrictions, (d) the performance
targets or goals appropriate to any outstanding Performance Awards, or (e) any
other terms of an Award that are affected by the event.

                          4. ADMINISTRATION OF THE PLAN

4.1. COMMITTEE MEMBERS. Except as provided in Section 4.4 hereof, the Plan will
be administered by the Committee which, to the extent deemed necessary or
appropriate by the Board, will consist of two or more persons who satisfy the
requirements for a "nonemployee director" under Rule 16b-3 promulgated under the
Exchange Act. The Committee may exercise such powers and authority as may be
necessary or appropriate for the Committee to carry out its functions as
described in the Plan. No member of the Committee will be liable for any action
or determination made in good faith by the Committee with respect to the Plan or
any Award under it.

4.2. DISCRETIONARY AUTHORITY. Subject to the express limitations of the Plan,
the Committee has authority in its discretion to determine the Eligible Persons
to whom, and

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the time or times at which, Awards may be granted, the number of shares, units
or other rights subject to each Award, the exercise, base or purchase price of
an Award (if any), the time or times at which an Award will become vested,
exercisable or payable, the performance criteria, performance goals and other
conditions of an Award, and the duration of the Award. The Committee also has
discretionary authority to interpret the Plan, to make all factual
determinations under the Plan, and to determine the terms and provisions of the
respective Award Agreements and to make all other determinations necessary or
advisable for Plan administration. The Committee has authority to prescribe,
amend, and rescind rules and regulations relating to the Plan. All
interpretations, determinations, and actions by the Committee will be final,
conclusive, and binding upon all parties.

4.3. CHANGES TO AWARDS. The Committee shall have the authority to effect, at any
time and from time to time, with the consent of the affected Participants, (a)
the cancellation of any or all outstanding Awards and the grant in substitution
therefor of new Awards covering the same or different numbers of shares of
Common Stock and having an exercise or base price which may be the same as or
different than the exercise or base price of the cancelled Awards or (b) the
amendment of the terms of any and all outstanding Awards. The Committee may in
its discretion accelerate the vesting or exercisability of an Award at any time
or on the basis of any specified event.

4.4. DELEGATION OF AUTHORITY. The Committee shall have the right, from time to
time, to delegate to one or more officers of the Corporation the authority of
the Committee to grant and determine the terms and conditions of Awards under
the Plan, subject to such limitations as the Committee shall determine;
provided, however, that no such authority may be delegated with respect to
Awards made to any member of the Board.

4.5. AWARDS TO INDEPENDENT DIRECTORS. An Award to an Independent Director under
the Plan shall be approved by the Board. With respect to Awards to Independent
Directors, all rights, powers and authorities vested in the Committee under the
Plan shall instead be exercised by the Board, and all provisions of the Plan
relating to the Committee shall be interpreted in a manner consistent with the
foregoing by treating any such reference as a reference to the Board for such
purpose.

                            5. ELIGIBILITY AND AWARDS

         All Eligible Persons are eligible to be designated by the Committee to
receive an Award under the Plan. The Committee has authority, in its sole
discretion, to determine and designate from time to time those Eligible Persons
who are to be granted Awards, the types of Awards to be granted and the number
of shares or units subject to the Awards that are granted under the Plan. Each
Award will be evidenced by an Award Agreement as described in Section 13 hereof
between the Corporation and the Participant that shall include the terms and
conditions consistent with the Plan as the Committee may determine.

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                                6. STOCK OPTIONS

6.1. GRANT OF OPTION. An Option may be granted to any Eligible Person selected
by the Committee; provided, however, that only Employees shall be eligible for
Awards of Incentive Stock Options. Each Option shall be designated, at the
discretion of the Committee, as an Incentive Stock Option or a Nonqualified
Stock Option.

6.2. EXERCISE PRICE. The exercise price of the Option shall be determined by the
Committee; provided, however, that the exercise price per share of an Option
shall not be less than one hundred percent (100%) of the Fair Market Value per
share of the Common Stock on the Date of Grant.

6.3. VESTING; TERM OF OPTION. The Committee, in its sole discretion, shall
prescribe in the Award Agreement the time or times at which, or the conditions
upon which, an Option or portion thereof shall become vested and exercisable,
and may accelerate the exercisability of any Option at any time. An Option may
become vested and exercisable upon a Participant's retirement, death,
disability, Change in Control or other event, to the extent provided in an Award
Agreement. The period during which a vested Option may be exercised shall be ten
years from the Date of Grant, unless a shorter exercise period is specified by
the Committee in an Award Agreement, and subject to such limitations as may
apply under an Award Agreement relating to the termination of a Participant's
employment or other service with the Corporation or any Subsidiary.

6.4. OPTION EXERCISE; WITHHOLDING. Subject to such terms and conditions as shall
be specified in an Award Agreement, an Option may be exercised in whole or in
part at any time during the term thereof by written notice to the Corporation
together with payment of the aggregate exercise price therefor. Payment of the
exercise price shall be made (a) in cash or by cash equivalent, (b) at the
discretion of the Committee, in shares of Common Stock acceptable to the
Committee, valued at the Fair Market Value of such shares on the date of
exercise, (c) at the discretion of the Committee, by a delivery of a notice that
the Participant has placed a market sell order (or similar instruction) with a
broker with respect to shares of Common Stock then issuable upon exercise of the
Option, and that the broker has been directed to pay a sufficient portion of the
net proceeds of the sale to the Corporation in satisfaction of the Option
exercise price (conditioned upon the payment of such net proceeds), (d) at the
discretion of the Committee, by a combination of the methods described above or
(e) by such other method as may be approved by the Committee and set forth in
the Award Agreement. In addition to and at the time of payment of the exercise
price, the Participant shall pay to the Corporation the full amount of any and
all applicable income tax and employment tax amounts required to be withheld in
connection with such exercise, payable under one or more of the methods
described above for the payment of the exercise price of the Options as may be
approved by the Committee.

6.5. LIMITED TRANSFERABILITY. Solely to the extent permitted by the Committee in
an Award Agreement and subject to such terms and conditions as the Committee
shall specify, a Nonqualified Stock Option (but not an Incentive Stock Option)
may be

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transferred to members of the Participant's immediate family (as determined by
the Committee) or to trusts, partnerships or corporations whose beneficiaries,
members or owners are members of the Participant's immediate family, and/or to
such other persons or entities as may be approved by the Committee in advance
and set forth in an Award Agreement, in each case subject to the condition that
the Committee be satisfied that such transfer is being made for estate or tax
planning purposes or for gratuitous or donative purposes, without consideration
(other than nominal consideration) being received therefor. Except to the extent
permitted by the Committee in accordance with the foregoing, an Option shall be
nontransferable otherwise than by will or by the laws of descent and
distribution, and shall be exercisable during the lifetime of a Participant only
by such Participant.

6.6.     ADDITIONAL RULES FOR INCENTIVE STOCK OPTIONS.

         (a) ANNUAL LIMITS. To the extent that the aggregate fair market value
(determined at the time the respective Incentive Stock Option is granted) of
Common Stock with respect to which Incentive Stock Options are exercisable for
the first time by an individual during any calendar year under the Plan, and any
other stock option plans of the Corporation, any Subsidiary or any parent
corporation, exceeds $100,000 (determined in accordance with section 422(d) of
the Code), such Incentive Stock Options shall be treated as Nonqualified Stock
Options. The Committee shall determine, in accordance with applicable provisions
of the Code, Treasury Regulations and other administrative pronouncements, which
of a Participant's Incentive Stock Options shall be treated as Nonqualified
Stock Options because of such limitation and shall notify the Participant of
such determination as soon as practicable after such determination.

         (b) TERMINATION OF EMPLOYMENT. An Award Agreement for an Incentive
Stock Option may provide that such Option may be exercised not later than 3
months following termination of employment of the Participant with the
Corporation and all Subsidiaries, subject to special rules relating to death and
disability, as and to the extent determined by the Committee to be appropriate
with regard to the requirements of section 422 of the Code and Treasury
Regulations thereunder.

         (c) OTHER TERMS AND CONDITIONS; NONTRANSFERABILITY. Any Incentive Stock
Option granted hereunder shall contain such additional terms and conditions, not
inconsistent with the terms of this Plan, as are deemed necessary or desirable
by the Committee, which terms, together with the terms of this Plan, shall be
intended and interpreted to cause such Incentive Stock Option to qualify as an
"incentive stock option" under section 422 of the Code. Such terms shall
include, if applicable, limitations on Incentive Stock Options granted to
ten-percent owners of the Corporation. An Award Agreement for an Incentive Stock
Option may provide that such Option shall be treated as a Nonqualified Stock
Option to the extent that certain requirements applicable to "incentive stock
options" under the Code shall not be satisfied. An Incentive Stock Option shall
be nontransferable otherwise than by will or by the laws of descent and
distribution, and shall be exercisable during the lifetime of a Participant only
by such Participant.

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         (d) DISQUALIFYING DISPOSITIONS. If shares of Common Stock acquired by
exercise of an Incentive Stock Option are disposed of within two years following
the Date of Grant or one year following the transfer of such shares to the
Participant upon exercise, the Participant shall, promptly following such
disposition, notify the Corporation in writing of the date and terms of such
disposition and provide such other information regarding the disposition as the
Committee may reasonably require.

                          7. STOCK APPRECIATION RIGHTS

7.1. GRANT OF SARS. A Stock Appreciation Right granted to a Participant is an
Award in the form of a right to receive, upon surrender of the right, but
without other payment, an amount based on appreciation in the Fair Market Value
of the Common Stock over a base price established for the Award, exercisable at
such time or times and upon conditions as may be approved by the Committee.

7.2. TANDEM SARS. A Stock Appreciation Right may be granted in connection with
an Option, either at the time of grant or at any time thereafter during the term
of the Option. An SAR granted in connection with an Option will entitle the
holder, upon exercise, to surrender such Option or any portion thereof to the
extent unexercised, with respect to the number of shares as to which such SAR is
exercised, and to receive payment of an amount computed as described in Section
7.4 hereof. Such Option will, to the extent and when surrendered, cease to be
exercisable. An SAR granted in connection with an Option hereunder will have a
base price per share equal to the per share exercise price of the Option, will
be exercisable at such time or times, and only to the extent, that a related
Option is exercisable, and will expire no later than the related Option expires.

7.3. FREESTANDING SARS. A Stock Appreciation Right may be granted without
relationship to an Option and, in such case, will be exercisable as determined
by the Committee, but in no event after 10 years from the Date of Grant. The
base price of an SAR granted without relationship to an Option shall be
determined by the Committee in its sole discretion; provided, however, that the
base price per share of a freestanding SAR shall not be less than one hundred
percent (100%) of the Fair Market Value of the Common Stock on the Date of
Grant.

7.4. PAYMENT OF SARS. An SAR will entitle the holder, upon exercise of the SAR,
to receive payment of an amount determined by multiplying: (a) the excess of the
Fair Market Value of a share of Common Stock on the date of exercise of the SAR
over the base price of such SAR, by (b) the number of shares as to which such
SAR will have been exercised. Payment of the amount determined under the
foregoing may be made, in the discretion of the Committee, in cash, in shares of
Common Stock valued at their Fair Market Value on the date of exercise, or in a
combination of cash and shares of Common Stock.

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                               8. RESTRICTED STOCK

8.1. GRANTS OF RESTRICTED STOCK. An Award of Restricted Stock to a Participant
represents shares of Common Stock that are issued subject to such restrictions
on transfer and other incidents of ownership and such forfeiture conditions as
the Committee may determine. The Committee may, in connection with an Award of
Restricted Stock, require the payment of a specified purchase price.

8.2. VESTING REQUIREMENTS. The restrictions imposed on an Award of Restricted
Stock shall lapse in accordance with the vesting requirements specified by the
Committee in the Award Agreement. Such vesting requirements may be based on the
continued employment of the Participant with the Corporation or its Subsidiaries
for a specified time period or periods, provided that any such restriction shall
not be scheduled to lapse in its entirety earlier than the first anniversary of
the Date of Grant. Such vesting requirements may also be based on the attainment
of specified business goals or measures established by the Committee in its sole
discretion.

8.3. RESTRICTIONS. Shares of Restricted Stock may not be transferred, assigned
or subject to any encumbrance, pledge or charge until all applicable
restrictions are removed or expire or unless otherwise allowed by the Committee.
The Committee may require the Participant to enter into an escrow agreement
providing that the certificates representing Restricted Stock granted or sold
pursuant to the Plan will remain in the physical custody of an escrow holder
until all restrictions are removed or expire. Failure to satisfy any applicable
restrictions shall result in the subject shares of Restricted Stock being
forfeited and returned to the Corporation, with any purchase price paid by the
Participant to be refunded, unless otherwise provided by the Committee. The
Committee may require that certificates representing Restricted Stock granted
under the Plan bear a legend making appropriate reference to the restrictions
imposed.

8.4. RIGHTS AS SHAREHOLDER. Subject to the foregoing provisions of this Section
8 and the applicable Award Agreement, the Participant will have all rights of a
shareholder with respect to shares of Restricted Stock granted to him, including
the right to vote the shares and receive all dividends and other distributions
paid or made with respect thereto, unless the Committee determines otherwise at
the time the Restricted Stock is granted, as set forth in the Award Agreement.

8.5. SECTION 83(b) ELECTION. The Committee may provide in an Award Agreement
that the Award of Restricted Stock is conditioned upon the Participant making an
election, or refraining from making an election, with respect to the Award under
section 83(b) of the Code. Irrespective of whether an Award is so conditioned,
if a Participant makes an election pursuant to section 83(b) of the Code with
respect to an Award of Restricted Stock, the Participant shall be required to
promptly file a copy of such election with the Corporation.

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                              9. PERFORMANCE AWARDS

9.1. GRANT OF PERFORMANCE AWARDS. The Committee may grant Performance Awards
under the Plan, which shall be represented by units denominated on the Date of
Grant either in shares of Common Stock (Performance Shares) or in specified
dollar amounts (Performance Units). At the time a Performance Award is granted,
the Committee shall determine, in its sole discretion, one or more performance
periods and performance goals to be achieved during the applicable performance
periods, as well as such other restrictions and conditions as the Committee
deems appropriate. In the case of Performance Units, the Committee shall also
determine a target unit value or a range of unit values for each Award. No
performance period shall exceed ten years from the Date of Grant. The
performance goals applicable to a Performance Award grant may be subject to such
later revisions as the Committee shall deem appropriate to reflect significant
unforeseen events such as changes in law, accounting practices or unusual or
nonrecurring items or occurrences.

9.2. PAYMENT OF PERFORMANCE AWARDS. At the end of the performance period, the
Committee shall determine the extent to which performance goals have been
attained or a degree of achievement between minimum and maximum levels in order
to establish the level of payment to be made, if any, and shall determine if
payment is to be made in the form of cash or shares of Common Stock (valued at
their Fair Market Value at the time of payment) or a combination of cash and
shares of Common Stock. Payments of Performance Awards shall generally be made
as soon as administratively practicable following the end of the performance
period.

                                10. PHANTOM STOCK

10.1. GRANT OF PHANTOM STOCK. Phantom Stock is an Award to a Participant of a
number of hypothetical share units with respect to shares of Common Stock, with
an initial value based on the Fair Market Value of the Common Stock on the Date
of Grant. Phantom Stock shall be subject to such restrictions and conditions as
the Committee shall determine. On the Date of Grant, the Committee shall
determine, in its sole discretion, the installment or other vesting period of
the Phantom Stock and the maximum value of the Phantom Stock, if any. No vesting
period shall exceed 10 years from the Date of Grant. An Award of Phantom Stock
may be granted, at the discretion of the Committee, together with an Award of
Dividend Equivalent rights for the same number of shares covered thereby.

10.2. PAYMENT OF PHANTOM STOCK. Upon the vesting date or dates applicable to
Phantom Stock granted to a Participant, an amount equal to the Fair Market Value
of one share of Common Stock upon such vesting dates (subject to any applicable
maximum value) shall be paid with respect to such Phantom Stock unit granted to
the Participant. Payment may be made, at the discretion of the Committee, in
cash or in shares of Common Stock valued at their Fair Market Value on the
applicable vesting dates, or in a combination thereof.

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                            11. DIVIDEND EQUIVALENTS

11.1. GRANT OF DIVIDEND EQUIVALENTS. A Dividend Equivalent granted to a
Participant is an Award in the form of a right to receive cash payments
determined by reference to dividends declared on the Common Stock from time to
time during the term of the Award, which shall not exceed 10 years from the Date
of Grant. Dividend Equivalents may be granted on a stand-alone basis or in
tandem with other Awards. Dividend Equivalents granted on a tandem basis shall
expire at the time the underlying Award is exercised or otherwise becomes
payable to the Participant, or expires.

11.2. PAYMENT OF DIVIDEND EQUIVALENTS. Dividend Equivalent Awards shall be
payable in cash or in shares of Common Stock, valued at their Fair Market Value
on either the date the related dividends are declared or the date the Dividend
Equivalents are paid to a Participant, as determined by the Committee. Dividend
Equivalents shall be payable to a Participant as soon as administratively
practicable following the time dividends are declared and paid with respect to
the Common Stock, or at such later date as the Committee shall specify in the
Award Agreement.

                              12. CHANGE IN CONTROL

12.1. EFFECT OF CHANGE IN CONTROL. The Committee may, in an Award Agreement,
provide for the effect of a Change in Control on an Award. Such provisions may
include any one or more of the following: (a) the acceleration, limitation or
extension of time periods for purposes of exercising, vesting in, or realizing
gain from any Award; (b) the waiver or modification of performance or other
conditions related to the payment or other rights under an Award; (c) provision
for the cash settlement of an Award for an equivalent cash value, as determined
by the Committee; or (d) such other modification or adjustment to an Award as
the Committee deems appropriate to maintain and protect the rights and interests
of Participants upon or following a Change in Control.

12.2. DEFINITION OF CHANGE IN CONTROL. For purposes hereof, a "Change in
Control" shall be deemed to have occurred upon:

         (a) an acquisition subsequent to the Effective Date by any individual,
entity or group (within the meaning of section 13(d)(3) or 14(d)(2) of the
Exchange Act) (a "Person") of beneficial ownership (within the meaning of Rule
13d-3 promulgated under the Exchange Act) of thirty percent (30%) or more of
either (i) the then outstanding shares of Common Stock or (ii) the combined
voting power of the then outstanding Corporation Voting Securities; excluding,
however, the following: (A) any acquisition directly from the Corporation, other
than an acquisition by virtue of the exercise of a conversion privilege unless
the security being so converted was itself acquired directly from the
Corporation, (B) any acquisition by the Corporation and (C) any acquisition by
an employee benefit plan (or related trust) sponsored or maintained by the
Corporation or any Subsidiary;

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         (b) during any period of two (2) consecutive years (not including any
period prior to the Effective Date), individuals who at the beginning of such
period constitute the Board (and any new directors whose election by the Board
or nomination for election by the Corporation's shareholders was approved by a
vote of at least two-thirds (2/3) of the directors then still in office who
either were directors at the beginning of the period or whose election or
nomination for election was so approved) cease for any reason (except for death,
disability or voluntary retirement) to constitute a majority thereof;

         (c) the approval by the shareholders of the Corporation of a merger,
consolidation, reorganization or similar corporate transaction, whether or not
the Corporation is the surviving corporation in such transaction, other than a
merger, consolidation, reorganization or similar corporate transaction that
would result in the Corporation Voting Securities outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) at least fifty percent
(50%) of the combined voting power of the Corporation Voting Securities (or the
voting securities of such surviving entity) outstanding immediately after such
merger, consolidation, reorganization or similar corporate transaction;

         (d) the approval by the shareholders of the Corporation of (i) the sale
or other disposition of all or substantially all of the assets of the
Corporation, or (ii) a complete liquidation or dissolution of the Corporation;
or

         (e) adoption by the Board of a resolution to the effect that any Person
has acquired effective control of the business and affairs of the Corporation.

Notwithstanding the foregoing, if, at the time of a change described in clause
(i) or (ii) below, Duke and Phillips (or any successor to Duke and/or Phillips)
own, directly or indirectly and on an aggregate basis, at least fifty percent
(50%) of the combined voting power of the then outstanding Corporate Voting
Securities, a Change in Control shall not include (i) any change in the
ownership or ownership structure of Duke or Phillips and (ii) any change in the
percentage ownership interests held by Duke and/or Phillips in the Corporation.

                              13. AWARD AGREEMENTS

13.1. FORM OF AGREEMENT. Each Award under this Plan shall be evidenced by an
Award Agreement in a form approved by the Committee setting forth the number of
shares of Common Stock, units or other rights (as applicable) subject to the
Award, the exercise, base or purchase price (if any) of the Award, the time or
times at which an Award will become vested, exercisable or payable, the duration
of the Award and, in the case of Performance Awards, the applicable performance
criteria and goals. The Award Agreement shall also set forth other material
terms and conditions applicable to the Award as determined by the Committee
consistent with the limitations of this Plan. Award Agreements evidencing
Incentive Stock Options shall contain such terms and

                                       12
<PAGE>   13

conditions as may be necessary to meet the applicable provisions of section 422
of the Code.

13.2. TERMINATION OF SERVICE. The Award Agreements may include provisions
describing the treatment of an Award in the event of the retirement, disability,
death or other termination of a Participant's employment with or other service
to the Corporation and all Subsidiaries, such as provisions relating to the
vesting, exercisability, acceleration, forfeiture or cancellation of the Award
in these circumstances, including any such provisions as may be appropriate for
Incentive Stock Options as described in Section 6.6(b) hereof.

13.3. FORFEITURE EVENTS. The Committee may specify in an Award Agreement that
the Participant's rights, payments and benefits with respect to an Award shall
be subject to reduction, cancellation, forfeiture or recoupment upon the
occurrence of certain specified events, in addition to any otherwise applicable
vesting or performance conditions of an Award. Such events shall include, but
shall not be limited to, termination of employment for cause, violation of
material Corporation or Subsidiary policies, breach of noncompetition,
confidentiality or other restrictive covenants that may apply to the
Participant, or other conduct by the Participant that is detrimental to the
business or reputation of the Corporation or any Subsidiary.

13.4. CONTRACT RIGHTS; AMENDMENT. Any obligation of the Corporation to any
Participant with respect to an Award shall be based solely upon contractual
obligations created by an Award Agreement. No Award shall be enforceable until
the Award Agreement has been signed on behalf of the Corporation by its
authorized representative and signed by the Participant and returned to the
Corporation. By executing the Award Agreement, a Participant shall be deemed to
have accepted and consented to the terms of such Award Agreement and this Plan,
and any action taken in good faith under this Plan by and within the discretion
of the Committee, the Board or their delegates. Award Agreements covering
outstanding Awards may be amended or modified by the Committee in any manner
that may be permitted for the grant of Awards under the Plan, subject to the
consent of the Participant to the extent provided in the Award Agreement.

                             14. GENERAL PROVISIONS

14.1. NO ASSIGNMENT OR TRANSFER; BENEFICIARIES. Except as provided in Sections
6.5 and 8.3 hereof, Awards under the Plan shall not be assignable or
transferable, except by will or by the laws of descent and distribution, and
during the lifetime of a Participant the Award shall be exercised only by such
Participant or by his guardian or legal representative. Notwithstanding the
foregoing, the Committee may provide in the terms of an Award Agreement that the
Participant shall have the right to designate a beneficiary or beneficiaries who
shall be entitled to any rights, payments or other interests specified under an
Award following the Participant's death.

14.2. DEFERRALS OF PAYMENT. The Committee may permit a Participant to defer the
receipt of payment of cash or delivery of shares of Common Stock that would
otherwise

                                       13
<PAGE>   14

be due to the Participant by virtue of the exercise of a right or the
satisfaction of vesting or other conditions with respect to an Award. If any
such deferral is to be permitted by the Committee, the Committee shall establish
the rules and procedures relating to such deferral, including, without
limitation, the period of time in advance of payment when an election to defer
may be made, the time period of the deferral and the events that would result in
payment of the deferred amount, the interest or other earnings attributable to
the deferral and the method of funding, if any, attributable to the deferred
amount.

14.3. RIGHTS AS SHAREHOLDER. A Participant shall have no rights as a holder of
Common Stock with respect to any unissued securities covered by an Award until
the date the Participant becomes the holder of record of these securities.
Except as provided in Section 3.2 hereof, no adjustment or other provision shall
be made for dividends or other shareholder rights, except to the extent that the
Award Agreement provides for Dividend Equivalents, dividend payments or similar
economic benefits.

14.4. EMPLOYMENT OR SERVICE. Nothing in the Plan, in the grant of any Award or
in any Award Agreement shall confer upon any Eligible Person the right to
continue in the capacity in which he is employed by or otherwise serves the
Corporation or any Subsidiary.

14.5 TRANSFER OF EMPLOYMENT TO DUKE. For purposes of the Plan and all Award
Agreements governing outstanding Awards held by a Participant as of the date, if
any, of such Participant's transfer of employment as hereinafter described,
unless provided otherwise by the Committee in an Award Agreement, a Participant
who is an Employee shall not be considered to have terminated employment with
the Corporation and all Subsidiaries if such Participant's employment is
transferred directly from the Corporation or any Subsidiary to Duke (or an
entity that is wholly owned, directly or indirectly, by Duke) at a time when
Duke owns, directly or indirectly, greater than fifty percent (50%) of the
combined voting power of the then outstanding Corporation Voting Securities;
provided, however, that such a Participant shall be considered to have
thereafter terminated such employment upon the first to occur of (a) the date
such Participant terminates employment with the Corporation, all Subsidiaries,
Duke and all entities that are wholly owned, directly or indirectly, by Duke and
(b) the date Duke ceases to own, directly or indirectly, greater than fifty
percent (50%) of the combined voting power of the then outstanding Corporation
Voting Securities. The provisions of this Section 14.5 shall cease to apply as
of the first date upon which Duke owns, directly or indirectly, fifty percent
(50%) or less of the combined voting power of the then outstanding Corporation
Voting Securities.

14.6. SECURITIES LAWS. No shares of Common Stock will be issued or transferred
pursuant to an Award unless and until all then applicable requirements imposed
by federal and state securities and other laws, rules and regulations and by any
regulatory agencies having jurisdiction, and by any stock exchanges upon which
the Common Stock may be listed, have been fully met. As a condition precedent to
the issuance of shares pursuant to the grant or exercise of an Award, the
Corporation may require the Participant to take any reasonable action to meet
such requirements. The Committee may

                                       14
<PAGE>   15

impose such conditions on any shares of Common Stock issuable under the Plan as
it may deem advisable, including, without limitation, restrictions under the
Securities Act of 1933, as amended, under the requirements of any stock exchange
upon which such shares of the same class are then listed, and under any blue sky
or other securities laws applicable to such shares.

14.7. TAX WITHHOLDING. The Participant shall be responsible for payment of any
taxes or similar charges required by law to be withheld from an Award or an
amount paid in satisfaction of an Award, which shall be paid by the Participant
on or prior to the payment or other event that results in taxable income in
respect of an Award. The Award Agreement shall specify the manner in which the
withholding obligation shall be satisfied with respect to the particular type of
Award.

14.8. UNFUNDED PLAN. The adoption of this Plan and any setting aside of cash
amounts or shares of Common Stock by the Corporation with which to discharge its
obligations hereunder shall not be deemed to create a trust or other funded
arrangement. The benefits provided under this Plan shall be a general, unsecured
obligation of the Corporation payable solely from the general assets of the
Corporation, and neither a Participant nor the Participant's permitted
transferees or estate shall have any interest in any assets of the Corporation
or any Subsidiary by virtue of this Plan, except as a general unsecured creditor
of the Corporation. Notwithstanding the foregoing, the Corporation shall have
the right to implement or set aside funds in a grantor trust subject to the
claims of the Corporation's creditors to discharge its obligations under the
Plan.

14.9. OTHER COMPENSATION AND BENEFIT PLANS. The adoption of the Plan shall not
affect any other stock incentive or other compensation plans in effect for the
Corporation or any Subsidiary, nor shall the Plan preclude the Corporation from
establishing any other forms of stock incentive or other compensation for
employees of the Corporation or any Subsidiary. The amount of any compensation
deemed to be received by a Participant pursuant to an Award shall not constitute
compensation with respect to which any other employee benefits of such
Participant are determined, including, without limitation, benefits under any
bonus, pension, profit sharing, life insurance or salary continuation plan,
except as otherwise specifically provided by the terms of such plan.

14.10. PLAN BINDING ON SUCCESSORS. The Plan shall be binding upon the
Corporation, its successors and assigns, and the Participant, his executor,
administrator and permitted transferees and beneficiaries.

14.11. CONSTRUCTION AND INTERPRETATION. Whenever used herein, nouns in the
singular shall include the plural, and the masculine pronoun shall include the
feminine gender. Headings of Articles and Sections hereof are inserted for
convenience and reference and constitute no part of the Plan.

14.12. SEVERABILITY. If any provision of the Plan or any Award Agreement shall
be determined to be illegal or unenforceable by any court of law in any
jurisdiction, the

                                       15
<PAGE>   16

remaining provisions hereof and thereof shall be severable and enforceable in
accordance with their terms, and all provisions shall remain enforceable in any
other jurisdiction.

14.13. GOVERNING LAW. The validity and construction of this Plan and of the
Award Agreements shall be governed by the laws of the State of Delaware.

                  15. EFFECTIVE DATE, TERMINATION AND AMENDMENT

15.1. EFFECTIVE DATE; SHAREHOLDER APPROVAL. The Effective Date of the Plan shall
be the date of the adoption of the Plan by the Board, provided the Plan is
approved by the shareholders of the Corporation on such date or within 12 months
thereafter.

15.2. TERMINATION. The Plan shall terminate on the date immediately preceding
the tenth anniversary of the date the Plan is adopted by the Board. The Board
may, in its sole discretion and at any earlier date, terminate the Plan.
Notwithstanding the foregoing, no termination of the Plan shall in any manner
affect any Award theretofore granted without the consent of the Participant or
the permitted transferee of the Award.

15.3. AMENDMENT. The Board may at any time and from time to time and in any
respect, amend or modify the Plan; provided, however, that no amendment or
modification of the Plan shall be effective without the consent of the
Corporation's shareholders that would (a) change the class of Eligible Persons
under the Plan, or (b) increase the number of shares of Common Stock reserved
for issuance under the Plan or for certain types of Awards under Section 3.1
hereof. In addition, the Board may seek the approval of any amendment or
modification by the Corporation's shareholders to the extent it deems necessary
or advisable in its sole discretion for purposes of compliance with section 422
of the Code, the listing requirements of the New York Stock Exchange or for any
other purpose. No amendment or modification of the Plan shall in any manner
affect any Award theretofore granted without the consent of the Participant or
the permitted transferee of the Award.

                                       16<PAGE>   1
                                                                    EXHIBIT 10.1

                            INDEMNIFICATION AGREEMENT

         This INDEMNIFICATION AGREEMENT is made as of March   , 2000, and is
entered into by and between Sierra Well Service, Inc., a Delaware corporation
(the "Company"), and ______________________ ("Indemnitee").

                                R E C I T A L S:

               WHEREAS, the certificate of incorporation and bylaws of the
Company provide for the indemnification of its directors and executive officers
to the maximum extent permitted from time to time under applicable law and,
along with the Delaware General Corporation Law, contemplate that the Company
may enter into agreements with respect to such indemnification; and

               WHEREAS, the Board of Directors of the Company has concluded that
it is reasonable, prudent and in the best interests of the Company*s
stockholders for the Company to contractually obligate itself to indemnify
certain of its Authorized Representatives (defined below) so that they will
serve or continue to serve with greater certainty that they will be adequately
protected.

               NOW, THEREFORE, in consideration of the premises and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Company and Indemnitee hereby agree as follows:

               1.     Definitions. For purposes of this Agreement, except as
otherwise expressly provided or unless the context otherwise requires, the
following terms shall have the following respective meanings:

               "Authorized Representative" means (i) a director, officer,
        employee, agent or fiduciary of the Company or any Subsidiary and (ii) a
        person serving at the request of the Company or any Subsidiary as a
        director, officer, employee, fiduciary or other representative of
        another Enterprise.

               "Enterprise" means any corporation, partnership, limited
        liability company, association, joint venture, trust, employee benefit
        plan or other entity.

               "Expenses" means all expenses, including (without limitation)
        reasonable fees and expenses of counsel.

               "Liabilities" means all liabilities, including (without
        limitation) the amounts of any judgments, fines, penalties, excise taxes
        and amounts paid in settlement.

<PAGE>   2

               "Proceeding" means any threatened, pending or completed claim,
        action (including any action by or in the right of the Company), suit or
        proceeding (whether formal or informal, or civil, criminal,
        administrative, legislative, arbitrative or investigative) in respect of
        which Indemnitee is, was or at any time becomes, or is threatened to be
        made, a party, witness, subject or target, by reason of the fact that
        Indemnitee is or was an Authorized Representative or a prospective
        Authorized Representative.

               "Subsidiary" means, at any time, (i) any corporation of which at
        least a majority of the outstanding voting stock is owned by the Company
        at such time, directly or indirectly through subsidiaries, and (ii) any
        other Enterprise in which the Company, directly or indirectly, owns more
        than a 50% equity interest at such time.

               2.  Interpretation. (a) In this Agreement, unless a clear
contrary intention appears:

               (i)   the singular number includes the plural number and vice
        versa;

               (ii)  reference to any gender includes each other gender;

               (iii) the words "herein," "hereof" and "hereunder" and other
        words of similar import refer to this Agreement as a whole and not to
        any particular Section or other subdivision;

               (iv)  unless the context indicates otherwise, reference to any
        Section means such Section hereof; and

               (v)   the words "including" (and with correlative meaning
        "include") means including, without limiting the generality of any
        description preceding such term.

               (b) The Section headings herein are for convenience only and
shall not affect the construction hereof.

               (c) No provision of this Agreement shall be interpreted or
construed against any party solely because that party or its legal
representative drafted such provision.

               (d) In the event of any ambiguity, vagueness or other similar
matter involving the interpretation or meaning of this Agreement, this Agreement
shall be liberally construed so as to provide to Indemnitee the full benefits
contemplated hereby.

               (e) If the indemnification to which Indemnitee is entitled as
respects any aspect of any claim varies between two or more provisions of this
Agreement, that provision providing the most comprehensive indemnification shall
apply.

                                      -2-

<PAGE>   3

               3.  Limitation on Personal Liability. To the fullest extent
permitted by applicable law, Indemnitee shall not be personally liable to the
Company or its stockholders for monetary damages for breach of fiduciary duty as
a director of the Company, provided that the foregoing shall not eliminate or
limit the liability of Indemnitee (i) for any breach of Indemnitee's duty of
loyalty to the Company or its stockholders, (ii) for acts or omissions not in
good faith or which involve intentional misconduct or a knowing violation of
law, (iii) under Section 174 of the Delaware General Corporation Law relating to
unlawful dividend payments and unlawful stock purchases or redemptions or (iv)
for any transaction from which Indemnitee derived an improper personal benefit.

               4.  Indemnity. (a) Subject to the following  provisions of this
Agreement, the Company shall hold harmless and indemnify Indemnitee against all
Expenses and Liabilities actually incurred by Indemnitee in connection with any
Proceeding; provided, however, that no indemnity shall be paid by the Company
pursuant to this Agreement:

               (i) for amounts actually paid to Indemnitee pursuant to one or
        more policies of directors and officers liability insurance maintained
        by the Company or pursuant to a trust fund, letter of credit or other
        security or funding arrangement provided by the Company; provided,
        however, that if it should subsequently be determined that Indemnitee is
        not entitled to retain any such amount, this clause (i) shall no longer
        apply to such amount;

               (ii) in respect of remuneration paid to Indemnitee if it shall be
        determined by a final judgment or other final adjudication that payment
        of such remuneration was in violation of applicable law;

               (iii) on account of Indemnitee*s conduct which is finally
        adjudged to constitute willful misconduct or to have been knowingly
        fraudulent, deliberately dishonest or from which the Indemnitee derives
        an improper personal benefit; or

               (iv) on account of any suit in which final judgment is rendered
        against Indemnitee for an accounting of profits made from the sale or
        purchase by Indemnitee of securities of the Company pursuant to the
        provisions of Section 16(b) of the Securities Exchange Act of 1934, as
        amended.

               (b) If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for only a portion (but not,
however, for the total amount) of any Expenses or Liabilities actually incurred
by Indemnitee in connection with any Proceeding, the Company shall nevertheless
indemnify Indemnitee for the portion of such Expenses and Liabilities to which
Indemnitee is entitled. If the indemnification provided for herein in respect of
any Expenses or Liabilities actually incurred by Indemnitee in connection with
any Proceeding is finally determined by a court of competent jurisdiction to be
prohibited by applicable law, then the Company, in lieu of indemnifying
Indemnitee, shall contribute to the amount paid or payable by Indemnitee as a
result of such Expenses and Liabilities in such proportion as is appropriate to
reflect (i) the relative benefits

                                      -3-

<PAGE>   4

received by the Company on the one hand and Indemnitee on the other hand from
the events, circumstances, conditions, happenings, actions or transactions from
which such Proceeding arose, (ii) the relative fault of the Company (including
its other Authorized Representatives) on the one hand and of Indemnitee on the
other hand in connection with the events, circumstances and happenings which
resulted in such Expenses and Liabilities, such relative fault to be determined
by reference to, among other things, the parties' relative intent, knowledge,
access to information and opportunity to correct or prevent the events,
circumstances and/or happenings resulting in such Expenses and Liabilities, and
(iii) any other relevant equitable considerations, it being agreed that it would
not be just and equitable if such contribution were determined by pro rata or
other method of allocation which does not take into account the foregoing
equitable considerations.

               (c) The indemnification provided herein shall be applicable only
to Proceedings commenced after the date hereof, regardless, however, of whether
they arise from acts, omissions, facts or circumstances occurring before or
after the date hereof.

               (d) The indemnification provided herein shall be applicable
whether or not negligence of Indemnitee is alleged or proved, and regardless of
whether such negligence be contributory or sole.

               (e) Amounts paid by the Company to Indemnitee under this Section
4 are subject to refund by Indemnitee as provided in Section 8.

               5. Notification and Defense of Claims. (a) Promptly after the
receipt by Indemnitee of notice of the commencement of any Proceeding,
Indemnitee will, if a claim in respect thereof is to be made against the Company
under this Agreement, notify the Company of the commencement of such Proceeding;
provided, however, that the omission to so notify the Company will not relieve
the Company (i) from any liability which it may have to Indemnitee under this
Agreement unless, and then only to the extent that, such omission results in
insufficient time being available to permit the Company or its counsel to
effectively defend against or make timely response to any loss, claim, damage,
liability or expense resulting from such Proceeding or otherwise has a material
adverse effect on the Company's ability to promptly deal with such loss, claim,
damage, liability or expense or (ii) from any liability which it may have to
Indemnitee otherwise than under this Agreement.

               (b) The following provisions shall apply with respect to any such
Proceeding as to which Indemnitee notifies the Company of the commencement
thereof:

               (i)   The Company shall be entitled to participate therein at its
        own expense.

               (ii)  Except as otherwise provided below, to the extent it may
        elect to do so, the Company (jointly with any other indemnifying party
        similarly notified) will be entitled to assume the defense thereof, with
        counsel of its own selection reasonably satisfactory to Indemnitee.
        After notice from the Company to Indemnitee of its election so to assume
        the defense thereof, the Company will not be liable to Indemnitee under
        this Agreement for any

                                      -4-

<PAGE>   5

        Expenses subsequently incurred by Indemnitee in connection with the
        defense of such Proceeding other than reasonable costs of
        investigation or as otherwise provided below. Indemnitee shall have
        the right to employ separate counsel in such Proceeding but the fees
        and expenses of such counsel incurred after notice from the Company of
        its assumption of the defense thereof shall be at the expense of
        Indemnitee unless (1) the employment of separate counsel by Indemnitee
        has been authorized by the Company; (2) Indemnitee shall have
        reasonably concluded that there may be a conflict of interest between
        the Company and Indemnitee in the conduct of the defense of such
        Proceeding; or (3) the Company shall not in fact have employed counsel
        to assume the defense of such Proceeding, in each of which cases the
        reasonable fees and expenses of Indemnitee's counsel shall be borne by
        the Company. The Company shall not be entitled to assume the defense
        of any Proceeding brought by or on behalf of the Company or as to
        which Indemnitee shall have made the conclusion provided for in (2)
        above. Nothing in this subparagraph (ii) shall affect the obligation
        of the Company to indemnify Indemnitee against Expenses and
        Liabilities paid in settlement for which it is otherwise obligated
        hereunder.

               (iii) The Company shall not be liable to indemnify Indemnitee
        under this Agreement for any amounts paid in settlement of any
        Proceedings or claims effected without its prior written consent. The
        Company shall not settle any Proceeding or claim in any manner which
        would impose any penalty or limitation on Indemnitee without
        Indemnitee's prior written consent. Neither the Company nor Indemnitee
        will unreasonably withhold or delay its consent to any proposed
        settlement.

               6. Advancement of Expenses, etc. If requested to do so by
Indemnitee with respect to any Proceeding, the Company shall advance to or for
the benefit of Indemnitee, in reasonable intervals prior to the final
disposition of such Proceeding, the Expenses actually incurred by Indemnitee in
investigating, defending or appealing such Proceeding. Any judgments, fines or
amounts to be paid in settlement of any Proceeding shall also be advanced by the
Company upon request by Indemnitee. Advances made by the Company under this
Section 6 are subject to refund by Indemnitee as provided in Section 8.

               7. Right of Indemnitee to Bring Suit. (a) If a claim for
indemnification or a claim for an advance under this Agreement is not paid in
full by the Company within 30 days after receipt by the Company from Indemnitee
of a written request or demand therefor, Indemnitee may bring suit against the
Company to recover the unpaid amount of the claim. If, in any such action,
Indemnitee makes a prima facie showing of entitlement to indemnification under
this Agreement, the Company shall have the burden of proving that
indemnification is not required under this Agreement. The only defense to any
such action shall be that indemnification is not required by this Agreement.

               (b) In the event that any action is instituted by Indemnitee to
enforce Indemnitee's rights or to collect monies due to Indemnitee under this
Agreement and if Indemnitee is successful in such action, the Company shall
reimburse Indemnitee for all Expenses incurred by Indemnitee with respect to
such action.

                                      -5-

<PAGE>   6

               8. Repayment Obligation of Indemnitee. If the Company advances or
pays any amount to Indemnitee under Section 4, 6 or 7 and if it shall thereafter
be finally adjudicated that Indemnitee was not entitled to be indemnified
hereunder for all or any portion of such amount, Indemnitee shall promptly repay
such amount or such portion thereof, as the case may be, to the Company. If the
Company advances or pays any amount to Indemnitee under Section 4, 6 or 7 and if
Indemnitee shall thereafter receive all or a portion of such amount under one or
more policies of directors and officers liability insurance maintained by the
Company or pursuant to a trust fund, letter of credit or other security or
funding arrangement provided by the Company, Indemnitee shall promptly repay
such amount or such portion thereof, as the case may be, to the Company.

               9. Changes in Law. If any change after the date of this Agreement
in any applicable law, statute or rule expands the power of the Company to
indemnify Authorized Representatives, such change shall be within the purview of
Indemnitee's rights and the Company's obligations under this Agreement. If any
change after the date of this Agreement in any applicable law, statute or rule
narrows the right of the Company to indemnify an Authorized Representative, such
change shall, to the fullest extent permitted by applicable law, leave this
Agreement and the parties' rights and obligations hereunder unaffected.

               10. Continuation of Indemnity. All agreements and obligations of
the Company hereunder shall continue during the period Indemnitee is an
Authorized Representative, and shall continue after Indemnitee has ceased to
occupy such position or have such relationship so long as Indemnitee shall be
subject to any possible Proceeding.

               11. Maintenance of Insurance. (a) The Company represents that it
presently maintains in force and effect the following directors and officers
liability insurance ("D&O Insurance") policies (the "Insurance Policies"):

<TABLE>
<CAPTION>
               Insurer             Policy No.           Coverage
               -------             ----------           --------
<S>                               <C>                  <C>

</TABLE>

Subject only to the provisions of Section 11(b) hereof, the Company hereby
agrees that, so long as Indemnitee shall continue to serve as an Authorized
Representative and thereafter so long as Indemnitee shall be subject to any
possible Proceeding, the Company shall use its best efforts to purchase and
maintain in effect for the benefit of Indemnitee one or more valid and
enforceable policy or policies of D&O Insurance providing, in all respects,
coverage at least comparable to that currently provided pursuant to the
Insurance Policies, provided that the Company shall have no obligation to
provide primary coverage in excess of $_____ million or excess coverage in
excess of $______ million.

               (b) The Company shall not be required to purchase and maintain
the Insurance Policies in effect if D&O Insurance is not reasonably available or
if, in the reasonable business judgement of the then directors of the Company,
either (i) the premium cost for such insurance is excessive in light of the
amount of coverage or (ii) the coverage provided by such insurance is so

                                      -6-

<PAGE>   7

limited by exclusions, retentions, deductibles or otherwise that there is
insufficient benefit from such insurance.

               12. Nonexclusivity. The indemnification and other rights provided
by any provision of this Agreement shall not be deemed exclusive of any other
rights to which Indemnitee may be entitled under (i) any statutory or common
law, (ii) the Company's certificate of incorporation, (iii) the Company's
bylaws, (iv) any other agreement or (v) any vote of stockholders or
disinterested directors or otherwise, both as to action in Indemnitee's official
capacity and as to action in another capacity while occupying any of the
positions or having any of the relationships referred to in this Agreement.
Nothing in this Agreement shall in any manner affect, impair or compromise any
indemnification Indemnitee has or may have by virtue of any agreement previously
entered into between Indemnitee and the Company.

               13. Severability. If any provision of this Agreement shall be
held to be invalid, illegal or unenforceable (i) the validity, legality or
enforceability of the remaining provisions of this Agreement shall not be in any
way affected or impaired thereby and (ii) to the fullest extent possible, the
provisions of this Agreement shall be construed so as to give effect to the
intent manifested by the provision held invalid, illegal or unenforceable. Each
provision of this Agreement is a separate and independent portion of this
Agreement.

               14. Modification and Waiver. No supplement, modification or
amendment of this Agreement shall be binding unless executed in writing by both
of the parties. No waiver of any of the provisions of this Agreement shall be
binding unless executed in writing by the person making the waiver nor shall
such waiver constitute a continuing waiver.

               15. Notices. All notices, requests, demands and other
communications hereunder shall be in writing and shall be addressed (i) if to
the Company, at its principal office address as shown on the signature page
hereof or such other address as it may have designated by written notice to
Indemnitee for purposes hereof, directed to the attention of the Secretary and
(ii) if to Indemnitee, at Indemnitee's address as shown on the signature page
hereof or to such other address as Indemnitee may have designated by written
notice to the Company for purposes hereof. Each such notice or other
communication shall be deemed to have been duly given if (a) delivered by hand
and receipted for by the party to whom said notice or other communication shall
have been directed, (b) transmitted by facsimile transmission, at the time that
receipt of such transmission is confirmed, or (c) mailed by certified or
registered mail with postage prepaid, on the third business day after the date
on which it is so mailed.

               16. Governing Law. THIS AGREEMENT SHALL BE DEEMED TO BE A
CONTRACT MADE UNDER, AND SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW.

               17. Heirs, Successors and Assigns. (a) This Agreement shall be
binding upon, inure to the benefit of and be enforceable by (i) Indemnitee and
Indemnitee's personal or legal

                                      -7-

<PAGE>   8

representatives, executors, administrators, heirs, devisees and legatees and
(ii) the Company and its successors and assigns. This Agreement shall not inure
to the benefit of any other person or Enterprise.

               (b) The Company agrees to require any successor (whether direct
or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. As used herein, the term "Company" shall include any successor
to its business and/or assets as aforesaid which executes and delivers the
assumption and agreement provided for in this Section 17 or which otherwise
becomes bound by all terms and provisions of this Agreement by operation of law.

                                      -8-

<PAGE>   9

               ENTERED into on the day and year first above written.

                                                   SIERRA WELL SERVICE, INC.

                                                   By:
                                                       -------------------------
                                                       Name:
                                                       Title:
                                                       Address:
                                                       Telecopier:

                                                   INDEMNITEE:

                                                   -----------------------------
                                                   [OFFICER/DIRECTOR]

                                                   Address:
                                                   Telecopier:

                                      -9-

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