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EXHIBIT 10.5

ENCORE ACQUISITION COMPANY

FORM OF INCENTIVE STOCK OPTION AGREEMENT

This Incentive Stock Option Agreement (“Agreement”) is made and entered into as of the date of
grant set forth below (the “Date of Grant”) by and between Encore Acquisition Company, a Delaware
corporation (the “Company”), and the optionee named below (“Optionee”). Capitalized terms not
defined herein shall have the meaning ascribed to them in the Company’s 2000 Incentive Stock Plan,
as amended and restated effective March 18, 2004, and thereafter amended (the “Plan”).

	 	 	 	 	 
	Optionee:

	 	 
	 
	 	 	 	 
	Social Security Number:

	 	 
	 
	 	 	 	 
	Address:

	 	 
	 
	 	 	 	 
	
	 	 
	 
	 	 	 	 
	Total Option Shares:

	 	 
	 
	 	 	 	 
	Exercise Price Per Share:

	 	 
	 
	 	 	 	 
	Date of Grant:

	 	 
	 
	 	 	 	 
	Expiration Date for Exercise of Options:

	 	 

1. Grant of Option. The Company hereby grants to Optionee an option (the “Option”) to
purchase the total number of shares of Common Stock of the Company (the “Common Stock”) set forth
above (the “Shares”) at the Exercise Price Per Share set forth above (the “Exercise Price”),
subject to all of the terms and conditions of this Agreement and the Plan. To the extent
consistent with the requirements of Section 422 of the Internal Revenue Code of 1986, as amended
(the “Code”), this Option is intended to be an incentive stock option, and to the extent the
limitations of Section 422(d) of the Code are exceeded, this Option is intended to be a
nonqualified stock option subject to the provisions of Section 83 of the Code.

2. Exercise of Option. This Option shall be exercisable during its term in accordance with
the terms and provisions of the Plan as follows:

     (a) Vesting.

     (1) This Option shall vest and be exercisable based on the following schedule:

	 	(i)  	1/3 of the total Shares subject to this Option
shall vest and be exercisable by Optionee 12 months after the Date of
Grant;

 

 

	 	(ii)  	Another 1/3 of the total Shares subject to this
Option shall vest and be exercisable by Optionee 24 months after the
Date of Grant; and
	 
	 	(iii)  	The final 1/3 of the total Shares subject to
this Option shall vest and be exercisable by Optionee 36 months after
the Date of Grant.

     (2) This Option may not be exercised for a fraction of a Share, but instead, the number
of Shares, which shall vest and be exercisable hereunder, shall be rounded up to the next
whole number of Shares.

     (3) In the event of Optionee’s death, disability, or other termination of employment,
the exercisability of the Option is governed by Sections 4, 5 and 6 below.

     (4) In no event may this Option be exercised after the date of expiration of the term
of this Option as set forth in Section 8 below.

     (b) Method of Exercise. This Option shall be exercisable by written notice, which shall
state the election to exercise the Option and the number of Shares in respect of which the Option
is being exercised. Such written notice shall be signed by Optionee and shall be delivered in
person or by certified mail to the Corporate Secretary of the Company. The written notice shall be
accompanied by payment of the Exercise Price.

     No Shares will be issued pursuant to the exercise of an Option unless such issuance and such
exercise shall comply with all relevant provisions of law and the requirements of any stock
exchange upon which the Common Stock may then be listed. Assuming such compliance, for income tax
purposes the Shares shall be considered transferred to Optionee on the date on which the Option is
exercised with respect to such Shares.

3. Method of Payment. Payment of the purchase price of Shares shall be made by cash, check
or, in the sole discretion of the Committee at any time prior to exercise, promissory notes or the
assignment and delivery to the Company of shares of Common Stock owned by Optionee without
restriction for the preceding six months having a Fair Market Value equal to the aggregate purchase
price of the Shares purchased.

     The Company will, as soon as reasonably practicable, notify Optionee of the amount of
withholding tax, if any, that must be paid under federal, state and local law due to the exercise
of the Option. Optionee shall, prior to receiving the Shares purchased under this Option, satisfy
the amount of withholding tax specified in the Company’s notice by (i) cash or check, (ii)
assignment and delivery to the Company of shares of Common Stock owned by Optionee
(without regard to the length of time held by Optionee) having a Fair Market Value of such
amount, (iii) notice to the Company of Optionee’s election to have the Company withhold whole
Shares otherwise deliverable to Optionee from the exercise of the Option, which Shares have a Fair
Market Value of such amount or (iv) a combination of (i), (ii) or (iii).

     Certificates for any shares of Common Stock delivered in satisfaction of all or a portion of
the Exercise Price and any withholding tax shall be appropriately endorsed for transfer and
assignment to the Company. For purposes of determining the amount, if any, of the Exercise Price
satisfied by delivery of shares of Common Stock or the amount of tax withholding satisfied

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by
delivery of shares of Common Stock or withholding of Shares from the exercise of the Option, such
shares shall be valued at Fair Market Value on the date of exercise.

4. Termination of Status as an Employee. In the event of termination of Optionee’s
“Continuous Status as an Employee” for any reason other than death or disability as provided in
Sections 5 or 6 of this Agreement, Optionee may exercise this Option to the extent exercisable at
the date of such termination until the earlier of (i) the date three (3) months after the date of
such termination or (ii) the date of expiration of the term of this Option as set forth in Section
8 below. To the extent that Optionee was not entitled to exercise this Option at the date of such
termination, or if Optionee does not exercise this Option within the time specified herein, this
Option shall terminate.

     “Continuous Status as an Employee” shall mean the absence of any interruption or termination
of service as an employee of the Company or any subsidiary or affiliate, as applicable. Continuous
Status as an Employee shall not be considered interrupted in the case of sick leave, military
leave, or any other leave of absence approved by the Board; provided that such leave is for a
period of not more than 90 days or reemployment upon the expiration of such leave is guaranteed by
contract or statute.

5. Disability of Optionee. In the event of termination of Optionee’s Continuous Status as
an Employee as a result of Optionee’s total and permanent disability (as defined in Section
22(e)(3) of the Code), Optionee may exercise this Option with respect to all Shares subject to this
Option (to the extent not previously exercised), but only until the earlier of (i) the date two (2)
years after the date of termination of employment or (ii) the date of expiration of the term of
this Option as set forth in Section 8 below. To the extent the Optionee does not exercise this
Option within the time period specified herein, this Option shall terminate.

6. Death of Optionee. In the event of the death of Optionee:

     (a) during the term of this Option while an Employee of the Company and having been in
Continuous Status as an Employee since the date of grant of this Option or during the two (2) year
period specified in Section 5 following the termination of Optionee’s Continuous Status as an
Employee as a result of total and permanent disability, then this Option may be exercised with
respect to all Shares subject to this Option (to the extent not previously exercised)
by Optionee’s estate or by a person who acquired the right to exercise the Option by bequest
or inheritance until the earlier of (i) the date two (2) years following the date of death or (ii)
the date of expiration of the term of this Option as set forth in Section 8 below; or

     (b) within the three (3) month period specified in Section 4 after the termination of
Optionee’s Continuous Status as an Employee, then this Option may be exercised to the extent
exercisable at termination by Optionee’s estate or by a person who acquired the right to exercise
this Option by bequest or inheritance until the earlier of (i) the date two (2) years following the
date of death or (ii) the date of expiration of the term of this Option as set forth in Section 8
below.

To the extent that such estate or other person does not exercise such Option within the two (2)
year time period specified in this Section 6, this Option shall terminate.

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7. Non-Transferability of Option. This Option may not be transferred in any manner
otherwise than by will or by the laws of descent or distribution and may be exercised during the
lifetime of Optionee, only by Optionee. The terms of this Option shall be binding upon the
executors, administrators, heirs, successors and assigns of Optionee.

8. Term of Option. This Option must be exercised on or before ______________ and may be
exercised during such term only in accordance with the Plan and terms of this Option.

9. Severability; Construction. In the event that any provision in this Option shall be
invalid or unenforceable, such provision shall be severed from and such invalidity or
unenforceability shall not be construed to have any effect on the remaining provisions of this
Option. This Option shall be construed as to its fair meaning and not for or against either party.

10. Damages. The parties agree that any violation of this Option (other than a default in
the payment of money) cannot be compensated for by damages, and any aggrieved party shall have the
right, and is hereby granted the privilege, of obtaining specific performance of this Option in any
court of competent jurisdiction in the event of any breach hereunder.

11. Governing Law. This Option shall be deemed to be made under and governed by and
construed in accordance with the laws of the State of Delaware.

12. Delay. No delay or failure on the part of the Company or Optionee in the exercise of any right, power
or remedy shall operate as a waiver thereof, nor shall any single or partial exercise by either of
them of any right, power or remedy preclude other or further exercise thereof, or the exercise of
any other right, power or remedy.

13. Incorporation of Plan; Complete Agreement. This Agreement and the grant of the Option
hereunder are made pursuant to the Plan and are subject to all of the terms and provisions of the
Plan as if fully set forth herein. This Agreement constitutes the entire agreement between the
parties with respect to its subject matter, and supersedes all other prior or contemporaneous
agreements and understandings both oral or written; subject, however, that in the event of any
conflict between this Agreement and the Plan, the Plan shall govern. This Agreement may only be
amended in a writing signed by the Company and the Optionee.

14. Privileges of Stock Ownership. Optionee shall not have any of the rights of a
shareholder with respect to any Shares until Optionee exercises the Option and pays the Exercise
Price.

15. Notices. Any notice required to be given or delivered to the Company under the terms
of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company at
its principal corporate offices. Any notice required to be given or delivered to Optionee shall be
in writing and addressed to Optionee at the address indicated above or to such other address as
such party may designate in writing from time to time to the Company. All notices shall be deemed
to have been given or delivered upon: personal delivery; three (3) days after deposit in the United
States mail by certified or registered mail (return receipt requested); one (1) business day after
deposit with any return receipt express courier (prepaid); or one (1) business day after
transmission by rapidfax or telecopier.

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     16. No Right to Employment or Continued Vesting. OPTIONEE ACKNOWLEDGES AND AGREES THAT THE
VESTING OF SHARES PURSUANT TO SECTION 2 HEREOF IS EARNED ONLY BY CONTINUING SERVICE AS AN EMPLOYEE
AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR
ACQUIRING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS OPTION, THE
COMPANY’S PLAN WHICH IS INCORPORATED HEREIN BY REFERENCE, THE TRANSACTIONS CONTEMPLATED HEREUNDER
AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF
CONTINUED EMPLOYMENT AS AN EMPLOYEE FOR THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL
NOT INTERFERE WITH OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S EMPLOYMENT
RELATIONSHIP AT ANY TIME, WITH OR WITHOUT CAUSE.

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     Optionee acknowledges receipt of a copy of the Plan, represents that Optionee is familiar with
the terms and provisions thereof, and hereby accepts this Option subject to all of the terms and
provisions thereof. Optionee has reviewed the Plan and this Option in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Option and fully understands
all provisions of this Option. Optionee hereby agrees to accept as binding, conclusive and final
all decisions or interpretations of the Board or of the Committee upon any questions arising under
the Plan.

	 	 	 	 	 
	Date:
	 	 	 	 
	

	 	

	 	 

THE COMPANY:

ENCORE ACQUISITION COMPANY, a Delaware corporation

	 	 	 	 	 
	By:

	 	 
	 
	 	 	 	 
	Name:

	 	 
	 
	 	 	 	 
	Title:

	 	 
	 
	 	 	 	 
	OPTIONEE:	 	 
	 
	 	 	 	 
	
	 	 
	 
	 	 	 	 
	
	 	 

Consent of Spouse. The undersigned spouse of Optionee acknowledges receipt of a copy of
the Plan and this Non-Qualified Stock Option Agreement, represents that he/she is familiar with the
terms and provisions thereof, has had an opportunity to obtain the advice of counsel prior to
executing this consent and fully understands all provisions of this Option and consent. The
undersigned spouse hereby agrees to accept as binding, conclusive and final all decisions or
interpretations of the Board or of the Committee upon any questions arising under the Plan.

	 	 	 	 	 
	Signature of Spouse:

	 	 
	 
	 	 	 	 
	Printed or Typed Name:

	 	 
	 
	 	 	 	 
	Address:

	 	 
	 
	 	 	 	 
	
	 	 

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EXHIBIT 10.6

FORM OF INDEMNITY AGREEMENT

     This Indemnity Agreement (the “Agreement”) is effective as of ______by and between Encore
Acquisition Company, a Delaware corporation (the “Indemnitor”), and ______(the
“Indemnitee”).

RECITALS

     The Indemnitee is a director and/or officer of the Indemnitor and/or an Affiliate Indemnitee
(as hereinafter defined). The Indemnitor and the Indemnitee recognize the increased risk of
litigation and other claims being asserted against directors and officers in today’s environment.

     The Indemnitor’s Second Amended and Restated Bylaws (the “Bylaws”) require the Indemnitor to
indemnify its directors and officers as currently provided therein, and the Indemnitee has been
serving and continues to serve as a director and/or officer of the Indemnitor in part in reliance
on such provisions. The Bylaws permit the Indemnitor to purchase and maintain insurance or to
furnish similar protection or make other arrangements (any such insurance, protection or
arrangement, an “Indemnification Arrangement”) on behalf of the Indemnitee against personal
liability (including, but not limited to, providing for Advanced Amounts (as hereinafter defined))
asserted against Indemnitee or incurred by or on behalf of Indemnitee in such capacity as a
director or officer of the Indemnitor or as an Affiliate Indemnitee, or arising out of Indemnitee’s
status as such, whether or not the Indemnitor would have the power to indemnify Indemnitee against
such liability under the provisions of this Agreement or under the General Corporation Law of the
State of Delaware (the “DGCL”), as it may then be in effect.

     In part to provide the Indemnitee with specific contractual assurance of substantial
protection against personal liability (regardless of, among other things, any amendment to or
revocation of the aforementioned provisions of the Bylaws or any change in the composition of the
Indemnitor’s Board of Directors or control of the Indemnitor), the Indemnitor desires to enter into
this Agreement. DGCL Section 145(f) expressly recognizes that the indemnification provisions of
the DGCL are not exclusive of any other rights to which a person seeking indemnification may be
entitled under the Indemnitor’s Second Amended and Restated Certificate of Incorporation (the
“Certificate of Incorporation) or Bylaws, or an agreement providing for indemnification, or a
resolution of stockholders or directors, or otherwise, and the Bylaws expressly recognize that the
indemnification provisions of the Bylaws shall not be deemed exclusive of, and shall not affect,
any other rights to which a person seeking indemnification may be entitled under any agreement.

     In order to induce the Indemnitee to serve as a director and/or officer of the Indemnitor and
in consideration of the Indemnitee’s so serving, the Indemnitor desires to hold harmless and
indemnify the Indemnitee and to make arrangements pursuant to which the Indemnitee may be advanced
or reimbursed expenses incurred by the Indemnitee in certain proceedings, in every case to the
fullest extent authorized or permitted by the DGCL, or any

 

 

other applicable law, or by any amendment thereof or other statutory provisions authorizing or
permitting such indemnification that are adopted after the date hereof (but, in the case of any
such amendment, only to the extent that such amendment permits the Indemnitor to provide broader
indemnification rights than the DGCL, or other applicable law, permitted the Indemnitor to provide
prior to such amendment).

     NOW THEREFORE, in consideration of the foregoing recitals and of the Indemnitee’s continuing
to serve the Indemnitor as a director and/or officer, the parties agree as follows:

     1. Indemnification. To the fullest extent allowed by law, the Indemnitor shall hold harmless
and indemnify the Indemnitee and Indemnitee’s spouse, heirs, executors and personal and legal
representatives against any and all expenses, liabilities and losses (including, without
limitation, investigation expenses, expert witnesses’ and attorneys’ fees and expenses, judgments,
travel expenses, penalties, fines, amounts paid or to be paid in settlement any interest,
assessments, or other charges imposed thereon and any federal, state, local or foreign taxes
imposed as a result of actual or deemed receipt of any payment hereunder) actually incurred by the
Indemnitee (net of any related insurance proceeds or other amounts received by the Indemnitee or
paid by or on behalf of an Indemnitor on the Indemnitee’s behalf in compensation of such expenses,
liabilities or losses) in connection with any actual or threatened action, suit or proceeding,
whether civil, criminal, administrative or investigative or in arbitration, to which the Indemnitee
is a party or participant or is threatened to be made a party or participant (a “Proceeding”), as a
plaintiff, defendant, respondent, witness or otherwise, based upon, arising from, relating to or by
reason of the fact that the Indemnitee: (a) is, was, shall be or shall have been a director and/or
officer of the Indemnitor; or (b) is or was serving, shall serve, or shall have served at the
request of the Indemnitor as a director, officer, partner, trustee, fiduciary, employee or agent
(“Affiliate Indemnitee”) of another foreign or domestic corporation or non-profit corporation,
cooperative, partnership, limited liability company, joint venture, trust, employee benefit plan,
or other incorporated or unincorporated enterprise (each, a “Company Affiliate”); or arising from
or relating to any action or omission to act taken by the Indemnitee in any of the foregoing
capacities; provided, however, that, except as provided in Section 9(b) hereof, the Indemnitor
shall indemnify the Indemnitee in connection with a Proceeding initiated by the Indemnitee only if
such proceeding (or part thereof) was authorized by a two-thirds vote of the Board of Directors of
the Indemnitor.

     The Indemnitee shall be presumed to be entitled to such indemnification under this Agreement
upon submission of a written claim pursuant to Section 4 hereof. Thereafter, the Indemnitor shall
have the burden of proof to overcome the presumption that the Indemnitee is so entitled. Such
presumption shall only be overcome by a judgment or other final adjudication, after all appeals and
all time for appeals has expired (“Final Determination”), which is adverse to the Indemnitee and
which establishes (i) that Indemnitee’s acts were committed in bad faith, or were the result of
active and deliberate dishonesty, and were material to the cause of action so adjudicated and (ii)
that the Indemnitee in fact personally gained a financial profit or other advantage to which
Indemnitee was not legally entitled. If the Indemnitee is not wholly successful in any Proceeding
but is successful, on the merits or otherwise, as to one or more but less than all claims, issues
or matters in such Proceeding, the Indemnitor agrees to indemnify the Indemnitee to the maximum
extent permitted by law against all losses and expenses incurred by

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the Indemnitee in connection with each successfully resolved claim, issue or matter. Neither
the failure of the Indemnitor (including its Board of Directors, its legal counsel or its
stockholders) to have made a determination prior to the commencement of such Proceeding that
indemnification of the Indemnitee is proper in the circumstances because such person has met the
applicable standard of conduct set forth in the DGCL, nor an actual determination by the Indemnitor
(including its Board of Directors, its legal counsel or its stockholders) that the Indemnitee has
not met the applicable standard of conduct, shall be a defense to the action or create a
presumption that the Indemnitee has not met the applicable standard of conduct. The purchase,
establishment or maintenance of any Indemnification Arrangement shall not in any way diminish,
restrict, limit or adversely affect the rights and obligations of the Indemnitor or of the
Indemnitee under this Agreement, except as expressly provided herein, and the execution and
delivery of this Agreement by the Indemnitor and the Indemnitee shall not in any way diminish,
restrict, limit or adversely affect the Indemnitee’s right to indemnification from the Indemnitor
or any other party or parties under any other Indemnification Arrangement, the Certificate of
Incorporation, the Bylaws or the DGCL.

     2. Period of Limitations. No legal action shall be brought and no cause of action shall be
asserted by or on behalf of the Indemnitor or any affiliate of the Indemnitor against the
Indemnitee, Indemnitee’s spouse, heirs, executors, or personal or legal representatives after the
expiration of two years from the date of accrual of such cause of action, or such longer period as
may be required by applicable law under the circumstances. Any claim or cause of action of the
Indemnitor or its affiliates shall be extinguished and deemed released unless asserted by the
timely filing of a legal action within such period; provided, however, that if any shorter period
of limitations is otherwise applicable to any such cause of action the shorter period shall govern.

     3. Insurance. Subject only to the provisions of this Section 3, as long as the Indemnitee
shall continue to serve as a director and/or officer of the Indemnitor (or shall continue at the
request of the Indemnitor to serve as an Affiliate Indemnitee) and, thereafter, as long as the
Indemnitee shall be subject to any possible Proceeding by reason of the fact that the Indemnitee
was a director and/or officer of the Indemnitor (or served in any of said other capacities), the
Indemnitor shall, unless no such policies are available in any market, purchase and maintain in
effect for the benefit of the Indemnitee one or more valid, binding and enforceable policies (the
“Insurance Policies”) of directors’ and officers’ liability insurance (“D&O Insurance”) providing
adequate liability coverage for the Indemnitee’s acts as a director and/or officer of the
Indemnitor or as an Affiliate Indemnitee. The Indemnitor shall promptly notify the Indemnitee of
any lapse, amendment or failure to renew said policy or policies or any provision thereof relating
to the extent or nature of coverage provided thereunder. In the event the Indemnitor does not
purchase and maintain in effect said policy or policies of D&O Insurance pursuant to the provisions
of this Section 3, the Indemnitor shall, in addition to and not in limitation of the other rights
granted the Indemnitee under this Agreement, hold harmless and indemnify the Indemnitee to the
fullest extent of coverage which would otherwise have been provided for the benefit of the
Indemnitee pursuant to the Insurance Policies.

     4. Claims for Payments. The Indemnitee shall have the right to receive from the Indemnitor on
demand or, at his option, to have the Indemnitor pay promptly on his behalf, in advance of the
Final Determination of a Proceeding, all amounts payable by the Indemnitor

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pursuant to the terms of this Agreement as corresponding amounts are expended or incurred by
the Indemnitee in connection with any Proceeding or otherwise (such amounts so expended or incurred
being referred to as “Advanced Amounts”). In making any claim for payment by the Indemnitor of any
amount, including any Advanced Amount, pursuant to this Agreement, the Indemnitee shall submit to
the Indemnitor a written request for payment (a “Claim”) which includes a schedule setting forth in
reasonable detail the dollar amount expended (or incurred or expected to be expended or incurred).
Each item on such schedule shall be supported by the bill, agreement or other documentation
relating thereto, a copy of which shall be appended to the schedule as an exhibit.

     Where the Indemnitee is requesting Advanced Amounts, the Indemnitee must also provide an
undertaking to repay such Advanced Amounts if a Final Determination is made that the Indemnitee is
not entitled to indemnification hereunder. The Indemnitor will accept any such undertaking without
reference to the financial ability of the Indemnitee to make repayment.

     5. Section 16(b) Liability. The Indemnitor shall not be liable under this Agreement to make
any payment in connection with any claim made against the Indemnitee for an accounting of profits
made from the purchase or sale by the Indemnitee of securities of the Indemnitor within the meaning
of Section 16(b) of the Securities Exchange Act of 1934, and amendments thereto, or similar
provisions of any state statutory law or common law.

     6. Nonexclusivity. The agreements and obligations of the Indemnitor contained herein are not
and will not be deemed exclusive of any other rights or remedies to which Indemnitee may at any
time be entitled under applicable law, the Certificate of Incorporation, the Bylaws, any agreement,
a vote of stockholders or otherwise, but each such right or remedy hereunder will be cumulative
with all such other rights and remedies. No amendment, alteration or termination of this Agreement
or any provision hereof will limit or restrict any right of Indemnitee hereunder in respect of any
action Indemnitee has taken or omitted to take prior to that amendment, alteration or termination.
To the extent that a change in Delaware law, whether by statute or judicial decision, permits
greater indemnification by agreement than would be afforded currently under this Agreement, it is
the intent and agreement of the parties hereto that Indemnitee will enjoy by this Agreement the
greater benefits that change affords.

     7. Continuation of Indemnity. All agreements and obligations of the Indemnitor contained
herein shall continue during the period the Indemnitee is a director and/or officer of the
Indemnitor (or is serving at the request of the Indemnitor as an Affiliate Indemnitee) and shall
continue thereafter so long as the Indemnitee shall be subject to any possible Proceeding by reason
of the fact that the Indemnitee was a director or officer of the Indemnitor or served as such an
Affiliate Indemnitee.

     8. Successors; Binding Agreement. This Agreement shall be binding on, and shall inure to the
benefit of and be enforceable by, the Indemnitor’s successors and assigns and by the Indemnitee’s
personal or legal representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. The Indemnitor shall require any successor or assignee (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Indemnitor, by written agreement in form

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and substance reasonably satisfactory to the Indemnitor and to the Indemnitee, expressly to
assume and agree to perform this Agreement in the same manner and to the same extent that the
Indemnitor would be required to perform if no such succession or assignment had taken place.

     9. Notification and Defense of Claim. Promptly after receipt by the Indemnitee of notice of
the commencement of any Proceeding, the Indemnitee shall, if a claim in respect thereof is to be
made against the Indemnitor under this Agreement, notify the Indemnitor of the commencement
thereof, but the failure to so notify the Indemnitor will not relieve the Indemnitor from any
liability which it may have to the Indemnitee. With respect to any such Proceeding:

     (i) The Indemnitor shall be entitled to participate therein at its own expense;

     (ii) Except with the prior written consent of the Indemnitee, the Indemnitor
shall not be entitled to assume the defense of any Proceeding; and

     (iii) The Indemnitor shall not settle any Proceeding in any manner which would
impose any penalty or limitation on the Indemnitee without the Indemnitee’s prior
written consent.

The Indemnitee shall not settle any Proceeding with respect to which the Indemnitee has received
indemnified amounts or Advanced Amounts without the Indemnitor’s prior written consent, nor will
the Indemnitee unreasonably withhold consent to any proposed settlement.

     10. Enforcement. (a) The Indemnitor has entered into this Agreement and assumed the
obligations imposed on the Indemnitor hereby in order to induce the Indemnitee to act as a director
and/or officer of the Indemnitor or as an Affiliate Indemnitee and acknowledges that the Indemnitee
is relying upon this Agreement in continuing in such capacity.

     (a) All expenses incurred by the Indemnitee in connection with the preparation and submission
of the Indemnitee’s request for indemnification hereunder shall be borne by the Indemnitor. In the
event the Indemnitee has requested payment of any amount under this Agreement and has not received
payment thereof within thirty (30) days of such request, the Indemnitee may bring any action to
enforce rights or collect moneys due under this Agreement, and, if the Indemnitee is successful in
such action, the Indemnitor shall reimburse the Indemnitee for all of the Indemnitee’s fees and
expenses in bringing and pursuing such action. If it is determined that the Indemnitee is entitled
to indemnification for part (but not all) of the indemnification so requested, expenses incurred in
seeking enforcement of such partial indemnification shall be reasonably prorated among the claims,
issues or matters for which the Indemnitee is not so entitled. The Indemnitee shall be entitled to
the advancement of such amounts to the fullest extent contemplated by Section 4 hereof in
connection with such Proceeding.

     11. Subrogation. If the Indemnitor makes or causes to be made any payment hereunder, it will
be subrogated to the extent of that payment to all the rights of recovery of Indemnitee, who will
execute all papers required and take all action necessary to secure those

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rights, including execution of such documents as are necessary to enable the Indemnitor to
bring suit to enforce those rights.

     12. Severability. If any provision or provisions of this Agreement shall be held to be
invalid, illegal or unenforceable for any reason whatsoever, (i) the validity, legality or
enforceability of the remaining provisions of this Agreement (including, without limitation, all
portions of any sections or subsections of this Agreement containing any such provision held to be
invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby, and (ii)
to the fullest extent possible, the provisions of any section or subsections of this Agreement
containing any such provisions held to be invalid, illegal or unenforceable shall be construed so
as to give effect to the intent of the parties that the Indemnitor provide protection to the
Indemnitee to the fullest extent enforceable.

     13. Modification; Waiver; Discharge.. No provisions of this Agreement may be modified, waived
or discharged unless such modification, waiver or discharge is agreed to in writing signed by the
Indemnitee and an officer of the Indemnitor designated by the Board of Directors of the Indemnitor.
No waiver by either party at any time of any breach by the other party of, or of noncompliance
with, any condition or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same time or at any prior
or subsequent time.

     14. Governing Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of Delaware, without giving effect to the
principles of conflicts of laws thereof.

     15. Jurisdiction. The Indemnitee may bring an action seeking resolution of disputes or
controversies arising under, or in any way related to, this Agreement in the state or federal court
jurisdiction in which the Indemnitee resides or in which Indemnitee’s place of business is located
and in any related appellate courts, and the Indemnitor hereby consents to the jurisdiction of such
courts and to such venue.

     16. Notices. Notices and all other communications provided for in this Agreement shall be in
writing and shall be deemed to have been duly given and received:

     (a) if personally delivered or if delivered by facsimile, electronic transmission or courier
service, when actually received by the party to whom the notice or other communication is sent; and

     (b) if delivered by mail, at the close of business on the third business day following the day
when such notice or communication was sent by United States registered mail, return receipt
requested, postage prepaid, to the appropriate party at the address of that party set forth below:

	 	 	 	 	 
	

	 	If to the Indemnitee:
	 	

	 
	 	 	 	 
	

	 	 	 	

	 
	 	 	 	 
	

	 	 	 	

6

 

	 	 	 	 	 
	

	 	If to the Indemnitor:
	 	Encore Acquisition Company
	

	 	 	 	777 Main Street, Suite 1400
	

	 	 	 	Fort Worth, Texas 76102
	

	 	 	 	Attn: Chief Executive Officer

or to such other address as either party may have furnished to the other in writing in accordance
herewith, except that notices of change of address shall be effective only upon receipt.

     17. Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original but all of which together shall constitute one and the same
instrument.

     18. Effectiveness. This Agreement shall be effective as of the day and year first above
written.

     IN WITNESS WHEREOF, the undersigned have caused this Agreement to be executed effective as of
the day and year first above written.

	 	 	 	 	 
	 	 	ENCORE ACQUISITION COMPANY
	 
	 	 	 	 
	 	 	By:

	 	 	Name:

	 	 	Title:

	 
	 	 	 	 
	 	 	INDEMNITEE
	 
	 	 	 	 
	 	 	

	 	 	[NAME]

7

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